Summer 2009

CMKT200 DA0/DB0 - MARKETING II (DEU_CMKT200S09_01) > TOOLS > MY GRADES > VIEW ATTEMPTS > REVIEW ASSESSMENT: CMKT200 QUIZ 4

Review Assessment: CMKT200 Quiz 4

User Nazira Rahmani

Submitted 7/17/09 2:53 PM

Name CMKT200 Quiz 4

Status Needs Grading

Score 18 out of 25 points

Time Elapsed 1 hours, 6 minutes, and 29 seconds out of 0 hours and 35 minutes allowed.

Instructions

Question 1

1 out of 1 points

Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per pair. Suppose a consultant tells Ace it can sell 700,000 heel repair kits, what price must it charge to achieve a profit of $2.5 million?

Selected Answer: A.

$17.14

Correct Answer:

A. $17.14

Feedback: Use the break-even formula and solve for price. Let P stand for price.700,000 = [2,500,000 + 6,000,000]/[P - 5] P = $17.14

Question 2

1 out of 1 points

All of the following are examples of internal secondary data EXCEPT:

Selected Answer: D. Nielsen ratings reports for Ontario purchased by an

organization.

Correct Answer:

D. Nielsen ratings reports for Ontario purchased by an organization.

Feedback: Nielsen ratings reports for Ontario purchased by an organization is an example of an external secondary data source.

Question 3

0 out of 1 points

The following question that appears on a questionnaire, “Did you serve any healthy, nutritious meals last week?” is most likely an example of a(n):

Selected Answer: B. unanswerable question.

Correct Answer:

A. leading question.

Feedback: It is a leading question that is biased toward respondent giving a socially desirable answer and saying he or she served healthy, nutritious meals.

Question 4

1 out of 1 points

Which of the following projects has the greatest NPV? Use a RRR =10% Project Investment Net Income Net Income Net Income Net Income Yr1 Yr2 Yr3 Yr4 A (100,000) $100,000 $20,000 $40,000 $0 B (100,000) $50,000 $40,000 $40,000 $0 C (100,000) $60,000 $40,000 $40,000 $25,000 D (100,000) $25,000 $25,000 $50,000 $50,000

Selected Answer: A. Project A

Correct Answer:

A. Project A

Question 5

1 out of 1 points

Statistics Canada completes the Census of Canada once every decade, which gives detailed information on Canadian households. This service provides:

Selected Answer: C. external secondary data.

Correct Answer:

C. external secondary data.

Feedback: External secondary data is published data from outside the organization.

Question 6

1 out of 1 points

A Designer is opening a business from home and is trying to understand his operating costs. Which of the following would be NOT be considered a fixed cost.

Selected Answer: D. Printing costs for drawings for

clients

Correct Answer:

D. Printing costs for drawings for clients

Question 7

1 out of 1 points

The National Health Interview Survey is conducted annually by the Centers for Disease Control and Prevention. By examining information gathered from sampling it was able to announce that 14.1 percent of all Americans lacked health care insurance in 2001. A health care organization doing research on patient nonpayment would refer to this information as _____ data.

Selected Answer: D. secondary

Correct Answer:

D. secondary

Feedback: Secondary data are facts and figures that have already been recorded before the project.

Question 8

0 out of 1 points

Calculate the Net present value of a customer for Virgin Mobile for the next 4 years. Use a discount rate of 5%. It costs $325 to acquire a customer. The net revenues generated by the customer are as follows: Year 1 $125, Year 2 $250, Year 3 $250 Year 4 $250

Selected Answers:

Cannot be determined

Correct Answers:

442

Question 9

1 out of 1 points

“Have you been to a dentist within the past 6 months? ___Yes ___No?” is an example of which type of question?

Selected Answer: D. dichotomous

Correct Answer:

D. dichotomous

Feedback: This question is the simplest form of a fixed alternative question. It only supplies two alternatives; therefore, it is a dichotomous question.

Question 10

0 out of 1 points

When conducting marketing experiments, the dependent variable can often describe any of the following EXCEPT:

Selected Answer: A. attitudes highly correlated to actual purchase

behaviour.

Correct Answer:

E. marketing mix variables.

Feedback: The change in behaviour (or its surrogates, such as preferences, attitudes or intentions) is what constitutes a dependent variable. Marketing mix elements are experimental independent variables that are manipulated to determine whether changes in purchase behaviour result.

Question 11

1 out of 1 points

What type of question is the following?Check your degree of agreement with the following statement:

“Marketing is an interesting subject.”( ) Strongly Agree ( ) Agree ( ) Disagree ( ) Strongly Disagree

Selected Answer: A. Likert scale

question

Correct Answer:

A. Likert scale question

Feedback: In a Likert scale, the respondent is asked to indicate the extent to which he agrees or disagrees with a statement.

Question 12

1 out of 1 points

Compared with _____ data, two disadvantages of _____ data are that the latter is usually far more time consuming and more expensive to collect.

Selected Answer: D. secondary; primary

Correct Answer:

D. secondary; primary

Feedback: Secondary data consist of information that have been recorded prior to the research at hand. Primary data consist of facts and figures that are newly collected for a current project. Two advantages of secondary data are: time savings and low cost as compared to primary data.

Question 13

1 out of 1 points

The question, “How many meals will you eat in restaurants in the next year?” is an example of a(n):

Selected Answer: C. unanswerable question.

Correct Answer:

C. unanswerable question.

Feedback: It is unlikely that any respondent would know the answer to this question.

Question 14

1 out of 1 points

Ships Ahoy is a small company that makes model sailboat kits priced at $120. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $3,500 for the monthly salary of its owner. Ships Ahoy's unit variable cost for its kits is:

Selected Answer: C. $50.

Correct Answer:

C. $50.

Feedback: Unit variable cost is variable cost expressed on a per unit basis - $45 of materials and $5 of labor.

Question 15

1 out of 1 points

The owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent each month, $500 in utilities, $750 interest on his loan, insurance premium of $200, and advertising on local buses $250 a month. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break-even?

Selected Answer: C. 1,050

buckets

Correct Answer:

C. 1,050 buckets

Feedback: The break-even point is calculated as fixed costs divided by price minus unit variable costs, or $4,200/($9.50 - $5.50), which equals 1,050 buckets of chicken.

Question 16

0 out of 1 points

Assume that the annual profit from a credit-card customer is:

Year 1 2 3 4 5

Customer profit $100 $125 $150 $200 $200 Using a RRR of 5% and a retention rate of 75 % Calculate the NPV of the customer

Selected Answer: C. Cannot be determined

Correct Answer:

E. 372

Question 17

1 out of 1 points

The following question that appears on a questionnaire, “What is your age? A. less than 20 years old, B. 20 to 40 years old, C. 40 to 60 years old, D. 60 years old or more” is most likely an example of a(n):

Selected Answer: D. question with non-mutually exclusive answers.

Correct Answer:

D. question with non-mutually exclusive answers.

Feedback: "Question with non-mutually exclusive answers" is correct because a person who is 40 years old would fall into either category b or c. Also, a person who is 60 years old would fall into either category c or d.

Question 18

1 out of 1 points

When compared with telephone and mail surveys, which of the following is NOT a characteristic of individual interview surveys?

Selected Answer: D. greatest difficulty in establishing rapport with the respondent

Correct Answer:

D. greatest difficulty in establishing rapport with the respondent

Feedback: Personal interviews allow greater opportunity to establish rapport with the respondent than either mail or telephone.

Question 19

0 out of 1 points

A marketing manager for P&G developed a direct mail marketing campaign to increase sales of Air Fresheners. The following are the costs associated with the campaign. The prospect list cost $20,000, creative costs $10,000, total mailing costs were 60,000, each air freshener cost 75 cents. Included in each direct mail piece was a coupon for 49 cents off the retail price of the Air Freshener. The Air Freshener retails for $6.99 without the coupon. Half of the net retail price goes to channel partners the other half to P&G. How many customers must purchase an air Freshener to Breakeven on the direct mail campaign? Assume all customers use the coupon.

Selected Answer: B. 13,846

Correct Answer:

C. 36,000

Question 20

0 out of 1 points

At a price of $3 each, SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle. If the price is increased to $3.25 each, only 1 million copies will be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. For the information provided here, what is SHAPE magazine's total revenue obtained at the higher price?

Selected Answer: B. $3,750,000

Correct Answer:

A. $3,250,000

Feedback: Total revenue at the higher price is equal to the price of $3.25 x 1,000,000 copies, or $3,250,000. See Figures 13-6 on page 339 and 13-7 on page 340.

Question 21

1 out of 1 points

A publishing company sponsors an informal one-time-only session with an influential college professor who uses a given text. The professor meets to discuss the textbook, its study guide, and the product's competition. This is an example of a(n):

Selected Answer: E. depth (or individual)

interview.

Correct Answer:

E. depth (or individual) interview.

Feedback: Key term definition - depth interviews

Question 22

1 out of 1 points

The primary reasons for using nonprobability samples when conducting a survey include all of the following EXCEPT:

Selected Answer: D. the conclusions require a sample that is representative of the

entire population.

Correct Answer: D. the conclusions require a sample that is representative of the

entire population.

Feedback: Although not mentioned in the text, "difficulty in recruiting a probability sample because the researcher cannot identify all members of a population and therefore not everyone has an equal chance of being selected" and "the slight impact that the results will have if implemented because the overall cost to the organization is negligible if the results are based on a nonprobability sample" are two logical reasons for using nonprobability samples in survey research.

Question 23

0 out of 1 points

A manufacturer estimates that consumers will accept a price of $75 for a handbag. If the manufacturer expects to offer trade discounts of 35, 15, 5 to retailers, wholesalers, and agents, what price will the manufacturer receive for the handbag?

Selected Answer: C. $33.75

Correct Answer:

D. $39.37

Feedback: $75 x .65 x .85 x .95 = $39.37

Question 24

1 out of 1 points

DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal with claims. It wants to introduce its product into new markets, but before it does so, it wants to have a prediction of how successful its sales efforts will be. One of the first things researchers did was to invite in a group of eight people with insurance to talk about home and auto insurance. Their conversation was recorded and later analyzed to determine if there were any differences between customers from different countries. This was an example of a(n):

Selected Answer: C. focus group.

Correct Answer:

C. focus group.

Feedback: In order to generate more specific research questions, the researchers asked general questions to identify consumers' likes and dislikes.

Question 25

1 out of 1 points

Two important advantages of secondary data are:

Selected Answer: C. they are usually inexpensive and save time.

Correct Answer:

C. they are usually inexpensive and save time.

Feedback: Two important advantages of secondary data are (1) the tremendous time savings if the data have already been collected; and (2) the low cost (for example, most census reports are available for only a few dollars each).

Question 1 1 out of 1 points

Which of the promotional elements has the potential to create promotion wars, be easily abused, and easily duplicated?

Selected Answer: sales promotion

Correct Answer: sales promotion

Question 2

1 out of 1 points

Which of the following is an important guideline when using fear appeal?

Selected Answer:

Don't make the appeal so strong that consumers want to avoid the advertisement.

Correct Answer:

Don't make the appeal so strong that consumers want to avoid the advertisement.

Question 3

0 out of 1 points

The marketing professor wanted to do everything possible to ensure her students understood her lectures. Accordingly, she used examples of marketing activities with which most students had recent experience. For example, the professor discussed the marketing exchanges between students and grocers, college bookstores, convenience stores and clothiers. The examples used by the professor

were her attempt to _____ her message so as to encourage understanding on the part of her students.

Selected Answer: effectively decode

Correct Answer: effectively encode

Question 4

1 out of 1 points

The ad for Microsoft Office XP emphasized how employees could be reading a document on the computer monitor, and the document be updated as they read it. For people who rely computers on a daily basis, this ad described a remarkably useful benefit. People who prefer paper documentation and do not use the computer daily were unimpressed by the feature, and some believed the new feature was actually a hindrance. The different interpretations of the ad is due to differing:

Selected Answer: fields of experience.

Correct Answer: fields of experience.

Question 5

1 out of 1 points

Portfolio tests:

Selected Answer:

place a test ad in the midst of other ads and stories, instruct consumers to look at the ads and stories, and then ask consumers questions about what was seen.

Correct Answer:

place a test ad in the midst of other ads and stories, instruct consumers to look at the ads and stories, and then ask consumers questions about what was seen.

Question 6

0 out of 1 points

An advertisement in the North American Hunter magazine shows the Chevrolet S-Series pickup. The ad headline proclaims, "Just Thought We'd Reinvent the Wheel. Starting With the Door." The advertisement emphasizes the truck's newest feature, a third door designed to let passengers enter the extended cab more easily. The ad copy states that the new Chevy truck is the only compact pickup to offer a third door. The advertisement is an example of a(n) _____ advertisement.

Selected Answer: informational institutional

Correct Answer: informational product

Question 0 out of 1 points

7

After reading the daily newspaper, the restaurant owner said, "The owner of Fellini's House of Noodles ran a quarter-page ad in today's paper. We'll just have to find enough money to run our own ad day after tomorrow." What budgeting technique is the restaurant owner most likely using?

Selected Answer: sell you can afford budgeting

Correct Answer: competitive parity budgeting

Question 8

0 out of 1 points

In which of the following situations would use of the competitive parity budget-setting method be most appropriate?

Selected Answer:

Two or more companies exist in an oligopoly, and are planning on a product diversification strategy.

Correct Answer:

Two or more companies are competing with similar products and similar promotional goals.

Question 9

1 out of 1 points

The testimonial type ads for carbon dioxide detectors feature parents who are discussing the dangers of carbon monoxide poisoning. In many of the ads, the homeowners tell the target audience how disaster can be averted by purchasing and using the advertised product. Such advertisements are using:

Selected Answer: fear appeals.

Correct Answer: fear appeals.

Question 10

1 out of 1 points

Taco Bell introduced its new low-fat Border Lights fare by giving away 8 million free tacos and burritos in one day. Taco Bell used a sales promotion technique called:

Selected Answer: sampling.

Correct Answer: sampling.

Question 11

1 out of 1 points

The kind of advertisements that state the position of a company on an issue, such as the ads sponsored by Miller beer encouraging the responsible use of alcohol, are _____ advertisements.

Selected Answer: advocacy

Correct Answer: advocacy

Question 12

0 out of 1 points

According to the text, which of the following types of media garners the largest amount of advertising expenditures?

Selected Answer: television

Correct Answer: newspapers

Question 13

1 out of 1 points

CTV's use of an integrated marketing communications (IMC) program for marketing Corner Gas proves that:

Selected Answer: such a program can be used successfully.

Correct Answer: such a program can be used successfully.

Question 14

1 out of 1 points

The frequent appearance of Snapple drink on UPN's Roswell TV show is an example of:

Selected Answer: product placement.

Correct Answer: product placement.

Question 15

1 out of 1 points

The Niagara Region Grape Growers Association has an ongoing ad campaign in which it encourages people to think of pistachios when they think of good times and good friends. The ads ask readers to log onto www.pistachios.org to register to win a prize of pistachios for a year. The association is using a _____ to measure the effectiveness of its ads.

Selected Answer: sweepstakes

Correct Answer: sweepstakes

Question 16

1 out of 1 points

Which of the following statements about magazines as an advertising medium is true?

Selected Answer:

All of these statements magazines as an advertising medium are true.

Correct Answer:

All of these statements magazines as an advertising medium are true.

Question 17

1 out of 1 points

In a brainstorming session for a new drug to lower cholesterol, the members of the marketing department agreed the benefits of the new drug could best be promoted by comparing the drug to those currently on the market. In terms of the communication process, the transformation of this idea into an ad campaign is an example of:

Selected Answer: encoding.

Correct Answer: encoding.

Question 18

0 out of 1 points

A hardware store owner placed an advertisement for Sylvania light bulbs in the local newspaper. Sylvania provided the storeowner with several high-quality, camera-ready sample advertisements. In addition to supplying the advertising formats, Sylvania also paid 50 percent of the cost of the advertisement. Sylvania was using _____ in an attempt to encourage both better advertising quality and greater advertising quantity in the efforts of local resellers of its product.

Selected Answer: strategic promotional implementation

Correct Answer: cooperative advertising

Question 19

0 out of 1 points

Which of the following statements about unaided recall posttests is true?

Selected Answer:

In an unaided recall posttest, respondents are asked questions to measure changes in their attitudes after an advertising campaign, such as whether they had a more favourable attitude toward the product advertised.

Correct Answer:

With unaided recall posttests, a question such as, "What ads do you remember seeing yesterday?" is asked of respondents without any other prompting to determine whether they saw or heard advertising messages.

Question 20

0 out of 1 points

Generation Y is often found listening to the radio, looking at Internet

advertising, and using a magazine to locate Web addresses. This ability to multitask has led to the acronym ________.

Selected Answer: TRIM

Correct Answer: SIMM

Question 21

0 out of 1 points

At the purchase stage in the consumer purchase decision process,:

Selected Answer:

the importance of advertising is highest, and personal selling is the lowest.

Correct Answer:

the importance of personal selling is highest, and advertising is the lowest.

Question 22

1 out of 1 points

One of the advantages associated with television as an advertising medium is that it:

Selected Answer: can target specific audiences.

Correct Answer: can target specific audiences.

Question 23

0 out of 1 points

After watching the 30-minute infomercial on Oxy-Clean, Mariah was certain the cleaning product would remove the grape juice stain from her white carpet. In terms of the communication process, Mariah has engaged in:

Selected Answer: receiving.

Correct Answer: decoding.

Question 24

0 out of 1 points

A major fallacy of _____ budgeting is that by tying budget to sales, a company may have the least amount to spend when it actually needs the greatest amount of promotion dollars.

Selected Answer: all-you-can-afford.

Correct Answer: percentage of sales

Question 25

0 out of 1 points

When Sears places a multiple-page booklet in the local newspaper about its Canada Day sale, it is an example of the use of which element of the promotional mix?

Selected Answer: direct marketing

Correct Answer: advertising