BUS 505DE MARKETING MANAGEMENT SPRING 2018 - FINAL EXAM Instructor Douglas T. Hill Instructions: 1. As a reply email list the answers 1-50 and your letter answers only. NO ATTACHMENTS, NO QUESTIONS, JUST NUMBERS AND LETTER ANSWERS 2. Send the email with your answers before 11:59pm of Sunday May 13, 2018. 3. This is an open note, open book exam. You may not collaborate with anyone. You must do this alone. Sharing answers or collaborating with others in any way will result in a grade of 0. 1. If E = 1, demand is said to be ________. a. elastic b. inelastic c. unitary d. invalid 2. What does it mean for demand to be “unitary?” a. prices go up or down but revenues remain about the same b. prices remain the same but revenue goes up and down c. prices and revenue change unpredictably d. there is never a change in price or revenue 3. Which of the following is NOT true about the price-sensitive segment? a. They are deal-prone. b. They will run to competitor if we raise prices. c. If prices get too high, they may completely drop out of the category. d. They’ll buy our brand no matter what. 4. Which of the following is the formula for cost-plus pricing? a. (unit cost) / (1-X%) b. (unit cost) x (1-X%) c. (unit cost) + (1-X%) d. (unit cost) - (1-X%) 5. If your fixed costs (including marketing, advertising, R&D, depreciation, etc.) are high relative to variable costs (which include labor or unit components), the strategic objective is to: a. maximize per unit margins b. eliminate advertising c. maximize sales volume d. raise the price as much as possible 6. (Price – variable costs) is also called ________. a. profit b. contribution per unit to fixed costs c. maximum sales volume d. fixed price units per contribution 7. National Product Company is indecisive about what prices it should charge for items in its new product line. The company wants the most accurate data on customers’ willingness-to-pay for its products. By using ________, which can yield very precise estimates of demand and price sensitivities at numerous price points, National Product Company can gather the data it needs to set prices. a. survey data b. conjoint analysis c. online data d. scanner data 8. All of the following are indicators of scanner data EXCEPT: a. which brands are bought b. the quantities bought c. product advertising d. the paid price 9. A survey asks the following two questions: Q1) $25.00 definitely would not buy 1 2 3 4 5 6 7 definitely would buy Q2) $35.00 definitely would not buy 1 2 3 4 5 6 7 definitely would buy There is a segment of people who are not really interested in the product regardless of the price. What are their answers most likely to be? a. Q1=2 or 3, and Q2=1 or 2 b. Q1=6 or 7, and Q2=5 or 6 c. Q1=4 or 5, and Q2=3 or ...

1. BUS 505DE MARKETING MANAGEMENT
SPRING 2018 - FINAL EXAM
Instructor Douglas T. Hill
Instructions:
1. As a reply email list the answers 1-50 and your letter answers
only. NO ATTACHMENTS, NO
QUESTIONS, JUST NUMBERS AND LETTER ANSWERS
2. Send the email with your answers before 11:59pm of Sunday
May 13, 2018.
3. This is an open note, open book exam. You may not
collaborate with anyone. You must do this
alone. Sharing answers or collaborating with others in any way
will result in a grade of 0.
1. If E = 1, demand is said to be ________.
a. elastic
b. inelastic
c. unitary
d. invalid

2. 2. What does it mean for demand to be “unitary?”
a. prices go up or down but revenues remain about the same
b. prices remain the same but revenue goes up and down
c. prices and revenue change unpredictably
d. there is never a change in price or revenue
3. Which of the following is NOT true about the price-sensitive
segment?
a. They are deal-prone.
b. They will run to competitor if we raise prices.
c. If prices get too high, they may completely drop out of the
category.
d. They’ll buy our brand no matter what.
4. Which of the following is the formula for cost-plus pricing?
a. (unit cost) / (1-X%)
b. (unit cost) x (1-X%)
c. (unit cost) + (1-X%)
d. (unit cost) - (1-X%)

3. 5. If your fixed costs (including marketing, advertising, R&D,
depreciation, etc.) are high
relative to variable costs (which include labor or unit
components), the strategic objective is to:
a. maximize per unit margins
b. eliminate advertising
c. maximize sales volume
d. raise the price as much as possible
6. (Price – variable costs) is also called ________.
a. profit
b. contribution per unit to fixed costs
c. maximum sales volume
d. fixed price units per contribution
7. National Product Company is indecisive about what prices it
should charge for items in its
new product line. The company wants the most accurate data on
customers’ willingness-to-pay
for its products. By using ________, which can yield very
precise estimates of demand and price
sensitivities at numerous price points, National Product

4. Company can gather the data it needs to
set prices.
a. survey data
b. conjoint analysis
c. online data
d. scanner data
8. All of the following are indicators of scanner data EXCEPT:
a. which brands are bought
b. the quantities bought
c. product advertising
d. the paid price
9. A survey asks the following two questions:
Q1) $25.00 definitely would not buy 1 2 3 4 5 6 7 definitely
would buy
Q2) $35.00 definitely would not buy 1 2 3 4 5 6 7 definitely
would buy
There is a segment of people who are not really interested in the
product regardless of the price.
What are their answers most likely to be?

5. a. Q1=2 or 3, and Q2=1 or 2
b. Q1=6 or 7, and Q2=5 or 6
c. Q1=4 or 5, and Q2=3 or 4
d. Q1=1 or 2, and Q2= 2 or 3
10. What is the marketing manager’s favorite tool to study
pricing?
a. conjoint
b. surveys
c. scanner data
d. meta-analysis
11. Most consumers wouldn’t drive very far to buy a pack of
gum since it’s a lost-cost item that
is often bought on impulse. Therefore, this product needs to be
distributed ________.
a. intensively
b. selectively
c. paradoxically
d. partially

6. 12. Some products are complicated and expensive, and require
the help of a salesperson for a
customer to make a purchase decision. These product, therefore,
need to be distributed
________.
a. intensively
b. selectively
c. paradoxically
d. partially
13. What term refers to the extreme case of selectivity?
a. distribution channel
b. exclusive channel
c. monopolistic channel
d. intensively channel
14. In push marketing, the manufacturer targets _________
rather than ________.
a. consumers, channel members
b. channel members, consumers

7. c. men, women
d. women, men
15. Channel design is an integral part of all of the following
EXCEPT:
a. marketing
b. strategy
c. positioning
d. pricing
16. Consumers are said to pull goods through the channel,
whereas trading partners
___________ the goods from the manufacturer on down the
food chain.
a. hold
b. throw
c. push
d. select
17. ___________ strategies are incentives a manufacturer offers
to its distribution partners such
as dealers, wholesalers, retailers, and the like to sell products to
the end users.
a. Pull marketing

8. b. Marketing
c. Promotion marketing
d. Push marketing
18. A perspective by which the benefits a company brings to its
partners (beyond cost
reductions) are emphasized is referred to as _____________.
a. TVA
b. TCA
c. governance cost
d. government cost
19. In the basic model of dyadic communication there are three
parts. Which of the following is
NOT one of the parts?
a. source
b. receiver
c. message
d. transfer agent

9. 20. SnowBlowers, Inc. is targeting consumers in the northern
regions of the U.S., and focusing
on giving consumer practical and function reasons to buy its
snowblowers. What type of ad is
SnowBlowers, Inc. using?
a. comparative
b. noncomparative
c. cognitive
d. emotional
21. SnowBlowers, Inc. expresses the benefits of using its
snowblowers. What type of argument is
SnowBlowers, Inc. using?
a. two-sided argument
b. one-sided argument
c. four-sided argument
d. three-sided argument
22. In a(n) ________, an advertisement emphasizes the positive
benefits, but also acknowledges
either some product weakness or that a competitor dominates on
some attribute.
a. three-sided argument

10. b. one-sided argument
c. two-sided argument
d. four-sided argument
23. In a(n) ______, a brand is mentioned and its features,
attributes, and image portrayal are
conveyed in the message.
a. noncomparative ad
b. comparative ad
c. emotional ad
d. cognitive ad
24. In a(n) ______, the featured brand name is mentioned, as is
the brand name of a competitor.
a. cognitive ad
b. noncomparative ad
c. comparative ad
d. emotional ad
25. FunnyTime Products uses humor in its ads to communicate
with its fun-loving consumers.

11. What type of ads does FunnyTime Products create?
a. comparative
b. emotional
c. cognitive
d. noncomparative
26. Hite Enterprises avoids using negative emotions in its
advertisements. Hite Enterprises likely
does not use emotions such as ________ to sells its products.
a. happiness and excitement
b. sadness and loneliness
c. aches and pains
d. fear and embarrassment
27. Sears has an ad for Christmas trees in December. What type
of ad is this?
a. continuous
b. occasional
c. seasonal
d. annual

12. 28. In the past, according to media and market research, after
TV, which media did people
typically spend more time on per day?
a. Magazines
b. Books
c. Newspapers
d. Radio
29. Donna’s philosophy as she coordinates her firm’s marketing
efforts is to keep in mind the
company’s overarching strategy, and to ensure that all
marketing activities send a consistent
message, beginning with the communications but also including
the other marketing mix
elements. Based on this information, Donna is most likely a
proponent of
a. Integrated Marketing Communications
b. Intended Marketing Commitments
c. Media Reach
d. Media Response
30. Donovan Digital sells sophisticated high-tech products.

13. Donovan Digital can best explain its
products in which media?
a. radio
b. newspapers
c. TV
d. billboards
31. Which ad would be the least expensive?
a. 30-second TV ad
b. 1 page, 1 day in metropolitan newspaper
c. 1 minute radio ad
d. full page color ad in BusinessWeek
32. Bill’s Surf Shop needs to advertise. Which option provides
the largest frequency?
a. TV
b. billboards
c. direct mail
d. the Web
33. Which medium yields the largest reach numbers?
a. radio

14. b. billboards
c. the Web
d. TV
34. Ryan is a marketer for a computer gaming company. He
wants to advertise the game’s new
graphics but doesn’t want to pay the high price of showing it off
on TV. What medium should he
use?
a. radio
b. billboards
c. magazines
d. newspaper
35. The easiest and most common way to characterize ________
in a social network is to count
the number of connections each actor has with the others in the
network.
a. linearity
b. extraversion
c. intelligence

15. d. centrality
36. Distributions of links in most networks follows a(n)
_________ rule.
a. 80/20
b. 50/50
c. 90/10
d. 60/40
37. What term refers to a homogenous sample of like-minded
people within a network?
a. clique
b. workgroup
c. club
d. team
38. Two actors are said to be_______ if their links to others are
the same.
a. heterogeneous
b. structurally equivalent
c. equitable
d. socially significant

16. 39. Amazon.com uses structural equivalence to do which of the
following?
a. make product recommendations
b. keep credit card information secure
c. encourage users to write product reviews
d. deliver purchases
40. In a cluster analysis, the rows represent _________, and the
columns represent ________.
a. customers, SKUs
b. SKUs, customers
c. retailers, customers
d. customers, retailers
41. Recommendation agents are a boon as a systematic means of
_______.
a. saving money
b. reaching new customers
c. soliciting feedback
d. cross-selling

17. 42. Many CEOs do not understand the attraction of social media
because of how _______ they
are.
a. uneducated
b. old
c. wealthy
d. intelligent
43.. The most trusted source of expectations is:
a. word-of-mouth.
b. a consumer’s own experience.
c. friends.
d. family.
44. When a consumer does not have much personal experience
with a realtor (for example, a
first-time home buyer), he will form expectations from ______.
a. an extrapolation of past experiences with professional
service providers
b. newspaper articles
c. his last visit with his doctor
d. an extrapolation of past experiences with service industry
staff

18. 45. When we have a situation where we do not have much
experience with a brand, we seek
people ______.
a. who are brand ambassadors
b. who are smart
c. who we are related to
d. who we trust
46. Information originating from the marketing mix of a
company that contributes to a
consumer’s expectations may include _______.
a. positioning claims made in advertising
b. suggestions of quality based on the price of a product
c. trust-worthy data on product quality
d. positioning claims made in advertising and suggestions of
quality based on the price
of a product
47. What do customers evaluate when making a purchase?
a. core
b. service

19. c. core and service
d. core, service, and supplemental
48. If the core part of the purchase is________.
a. good it decreases satisfaction
b. good it increases satisfaction
c. bad it increases dissatisfaction
d. bad it does not affect satisfaction
49. _______ factors are actions that go above and beyond
customer expectations.
a. Motivating
b. Hygiene
c. Extra
d. Bonus
50. The VP of Customer Experience at an international hotel
chain is constantly looking for ways
to improve customer service, whether it be at check-in, room
service, concierge services, check-
out, etc. This is important because customers generally evaluate
companies and brands based on

20. _______.
a. time components
b. search effort
c. points of interaction
d. value-added supplemental components