Marketing and Price Analysis
ARE 225 Spring 1998
Final Examination
Saturday, May 9, 1998
Multiple Choice (75 points, 3 points per question)
1. Some examples of core values in the United States would be the following except
a. the work ethic
b. the importance of team spirit
c. individualism
d. the importance of building wealth
e. all of the above
2. Advertising products to teen-agers that attempts to convince them that they will be accepted by their peers if they buy certain products is based on which of the Maslow needs?
a. reference groups
b. self-esteem needs
c. social and belongingness needs
d. psychological needs
e. safety and security needs
3. If a consumer is attempting to meet self esteem needs, the most likely product purchased would be
a. a luxury car
b. a personal computer
c. a home security system
d. yogurt and health food
e. camping gear
4. A firm's marketing strategy should emphasize stimulating demand in the
a. introductory stage
b. stabilization stage
c. growth stage
d. maturity stage
e. market retention stage
5. An example of extending the product life cycle by finding new uses for a product would be
a. oatmeal as a cholesterol reducer
b. waxed paper as a food cover in microwave cooking
c. mouthwash as an aid in treating and preventing plaque and gum disease
d. baking soda as an additive for municipal water supplies
e. all the above would be examples
6. Sear's Die Hard automobile battery is an example of a
a. national brand
b. manufacturer's brand
c. generic brand
d. family brand
e. private brand
7. A name, term, sign, symbol, design, or some combination of these used to identify the products of one firm and differentiate them from competitive offerings is called (a)
a. brand
b. trade name
c. generic name
d. "no frills"
e. corporate logo
8. The difference between a trademark and a brand name is that a trademark
a. has been given legal protection
b. only represents the symbolic identify of a product
c. can be used in test marketing
d. is that part of a brand which can be vocalized
e. is always larger in printed form
9. The agency that has assumed jurisdiction over every consumer product except food, automobiles, and a few other products is the
a. FTC
b. FDA
c. CPSC
d. USDA
10. The importance of wholesaling intermediaries can be explained in terms of
a. the form utility they create
b. their ability to lower costs
c. the service they require from producers
d. their ability to create dual distribution channels for raw materials
e. the fact that they can replace reverse channels
11. The most correct statement concerning a franchise is:
a. Sherwin-Williams and Firestone are examples
b. It is a channel member established by a corporate system in order to sell only that manufacturer's products.
c. It exists when a dealer agrees to the operating requirements and restrictions of a granting franchisor.
d. It can be either a wholesale-sponsored voluntary or a retail cooperative type of organization.
e. It is a certain guarantee of success.
12. Your college bookstore buys legal pads for $1.50 each and sells them at the retail price of $2.00. The markup percentage based on "cost" is
a. 25 percent
b. 33 percent
c. 50 percent
d. 66 percent
e. 75 percent
13. Advertising is particularly appropriate for
a. preconsumer goods
b. mass consumption and geographically dispersed markets
c. low-priced goods
d. high-priced goods
e. personal selling
14. Promotional mix elements include all of the following, except
a. publicity
b. public relations
c. sales promotion
d. service strategy
e. personal selling
15. The advertising medium that offers the highest selectivity in reaching specific target markets is
a. newspapers
b. television
c. radio
d. direct mail
e. outdoor advertising
16. Lack of flexibility is the biggest disadvantage to
a. television
b. radio
c. newspapers
d. magazines
e. direct mail
17. Sales promotion techniques include each of the following except
a. point-of-purchase advertising
b. specialty advertising
c. trade shows
d. direct mail advertising
e. samples, coupons, and premiums
18. Sampling is especially useful
a. for promoting new or unusual products
b. for promoting products that have been on the market for some time
c. as awards for winners of contests
d. as sweepstakes prizes
e. in point-of-purchase advertising
19. The method of price setting which is most widely used is
a. breakeven
b. customary
c. PIMS
d. cost plus
e. competitive
20. Airlines are usually forced to us a ___________________ pricing strategy.
a. prestige
b. competitive
c. breakeven
d. psychological
e. volume
21. Price theory concepts
a. should be ignored by marketers and left to the discretion of the accounting department
b. are relatively easy to apply in practice
c. are sometimes difficult to apply in practice
d. are uncontrollable factors in marketing
e. depend upon the size of the firm
22. In order to recover fixed costs rapidly with high profits, Sony set a high price for its giant-screen TV. The pricing strategy Sony used is called
a. penetration pricing
b. competitive pricing
c. market share pricing
d. target return pricing
e. skimming pricing
23. When General Motors introduced the Saturn, it priced the SL sports sedan at $ 2,000 less than the Toyota Corolla DLX and $ 1,500 less than the Toyota and Honda automobiles. This is an example of the pricing strategy called
a. skimming
b. penetration
c. competitive
d. loss leader
e. functional
24. Which of the following is not part of the principles of cooperative organizations:
a. Limited return on capital of the members.
b. One-man one-vote rule for major decisions.
c. These organizations attempt to maximize profits.
d. Often engage in payment pooling-averaging costs and returns to compute payment or charges to the members.
25. Which of the following is not true about grading:
a. It increases transaction costs of marketing agricultural products.
b. It decreases risk in exchange because you know what you are buying.
c. It decreases non-price competition because the same grade represents the same quality.
d. It encourages the use of electronic marketing and future markets.
e. It can increase consumer satisfaction by matching consumer preferences to alternative grades.
26. ESSAY (20 points)
You will beginning marketing a UCONN sports calendar for the 1998-99 academic year. Clearly define the following:
a. Product strategy, be specific about the kinds of pictures and dates highlights (excluding Spring Weekend).
b. Pricing strategy, be specific about the price you will charge at retail.
c. Distribution, be specific about the distribution channels you will use.
d. Promotion, be specific about how you would promote the calendar, including use of the internet.
27. Video (5 points).
Summarize the main points of the Modavi wines video.
Have a nice summer!!