Mkt 100 midterm

Question 1

What term is used to describe an experiment run by an ad agency where the ad agency will recruit consumers to come watch a TV series and commercials like those for Cheerios? The consumer will then answer questions about the ads and the agency uses the responses to determine how well the ads will do in the real world.

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A.

focus groups

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B.

Sampling

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C.

copy testing

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D.

ad concept testing

Question 2

In a(n) ______, the featured brand name is mentioned, as is the brand name of a competitor.

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A.

cognitive ad

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B.

noncomparative ad

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C.

comparative ad

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D.

emotional ad

Question 3

AIDA represents attention, interest, desire and _______.

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A.

action

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B.

assessment

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C.

attitude

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D.

accountability

Question 4

If the advertising goal is to increase awareness, what type of ad should be run?

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A.

an ad with lots of humor

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B.

an ad with lots of information

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C.

an ad with a celebrity endorsement

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D.

an ad with a combination of information and action

Question 5

Saffire Clothing’s ads claim that the brand is an exclusive, premium brand. Saffire’s products need to be _______, priced relatively high, and distributed relatively exclusively.

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A.

Trendy

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B.

high quality

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C.

Stylish

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D.

well known

Question 6

Profit maximization occurs when marginal revenue equals ______.

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A.

marginal profit

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B.

marginal sale

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C.

marginal cost

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D.

none of these

Question 7

Which of the following is NOT true about the price-sensitive segment?

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A.

They are deal-prone.

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B.

They will run to competitor if we raise prices.

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C.

If prices get too high, they may completely drop out of the category.

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D.

They’ll buy our brand no matter what.

Question 8

Which of the following is NOT one of the three ways for companies to set prices?

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A.

medium prices

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B.

high prices

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C.

low prices

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D.

discretionary prices

Question 9

Which of the following is true about competitive pricing?

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A.

It is set by covering costs and then adding some margin.

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B.

It is set by covering costs only.

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C.

It is set by figuring out just how much a customer is willing to pay, and pricing near that mark.

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D.

It is at a medium level, somewhere in between extremes, using competitors’ prices as a starting point, and adjusting from there.

Question 10

If a change in price barely effects demand, that means the demand is _______.

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A.

Supplied

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B.

Inelastic

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C.

Unstable

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D.

Relative

Question 11