Marketing and Price Analysis Name:_____________________ ___
Spring 1994 Exam Grade:________
Final Grade:________
ARE 225
Final Examination - Friday, May 13
Part I. True/False. (26 points, 2 points per questio n).
_____ 1. A distinguishing feature of black and Hispanic consumers is that they exhibit strong brand loyalty.
_____ 2. Motives are inner states that direct a person toward the goal of satisfying a felt need.
_____ 3. Subliminal advertising is considered manipulat ive due to the fact that it has been exceedingly successful in inducing purchase s of goods and services even though the consumer was not inclined to buy the pro duct or service.
_____ 4. A Consolidated Metropolitan Statistical Area i ncludes any city in the United States.
_____ 5. Engel's law states that as income rises, expen ditures on luxury items go up and spending on necessities falls.
_____ 6. In the maturity stage of the product life cycl e, some firms attempt to differentiate their products by focusing on attributes such as quality, reliability, and service.
_____ 7. Product positioning refers to the consumer's p erception of a product's attributes, use, quality, and advantages and disadvanta ges relative to competing brands.
_____ 8. The term wholesaler applies to intermediaries who do not take title to the products they handle.
_____ 9. Brokers and agents usually take possession and title of the goods they handle.
_____ 10. Television is the dominant medium for adverti sing to local markets.
_____ 11. Any advertisement should gain attention and i nterest, inform and/or persuade, and lead to buying action.
_____ 12. A skimming pricing strategy involves the use of low price relative to prices of competing products or services.
_____ 13. A competitive pricing strategy shifts the emp hasis from price competition to nonprice factors.
Part II. Multiple Choice. (64 points, 4 points per q uestion).
14. The U.S. Army theme of "Be all you can be" is an examp le of
a. safety needs.
b. social (belongingness) needs.
c. esteem needs.
d. self-actualization needs.
e. patriotism needs.
15. Under the Standard Industrial Classification, if food and kindred goods were assigned 20, meats were assigned 1, and poultry slaughter ing and processing were assigned 5, the SIC code for poultry would be
a. 5120.
b. 1205.
c. 2015.
d. 1520.
e. 0215.
16. Addressing a marketing class, a real estate salesperso n would be interested in the response to the question,
a. Who wants to buy a condominium in Aspen, Colorado?< /P>
b. Who would like to purchase a home in San Diego, Cal ifornia?
c. Who has $100,000 for a down payment and can qualify for a mortgage on a cooperative apartment in Sutton Place in New York City?
d. Who prefers to rent an apartment rather than purcha se a house?
e. Whose parents can lend them money for a down paymen t on a home?
17. If you were marketing luxury automobiles, you would mo st likely seek to target
a. POSLSQ.
b. SSWD.
c. DINKS.
d. cocoons.
e. empty-nesters.
18. A good marketing strategy would be to promote the exte nsive use of market segmentation in the
a. introductory stage.
b. stabilization stage.
c. growth stage.
d. maturity stage.
e. market research period.
19. Fillmore Pharmaceuticals was recently approached by a large retail drug chain that wants its vitamin E to be marketed under the drug c hain's name. This type of branding is an example of
a. private brands.
b. generic brands.
c. family brands.
d. national brands.
e. individual brands.
20. A characteristic of a good brand name is that
a. it should avoid any specific connotation.
b. it should be short and descriptive.
c. it has generic reference.
d. the pronunciation should be unique to the reader an d user.
e. it should be intricate in detail and phonetically s imilar to those of its competitors.
21. The most correct statement concerning a franchise is:< /P>
a. Sherwin-Williams and Firestone and examples.
b. It is a channel member established by a corporate s ystem in order to sell only that manufacturer's products.
c. It exists when a dealer agrees to the operating req uirements and restrictions of a granting franchisor.
d. It can be either a wholesale-sponsored voluntary o r a retail cooperative type of organization.
e. It is a certain guarantee of success.
22. Costs can be reduced at the wholesale level by
a. providing advertising allowances to the retailer.
b. reducing wholesale prices.
c. increasing shipping distances to retailers.
d. purchasing in small amounts from the manufacturer.< /P>
e. making large volume purchases from the manufacturer .
23. Sales promotion includes each of the following methods except
a. product demonstrations.
b. billboards.
c. coupons, contests, samples, and premiums.
d. displays.
e. trade shows.
24. Nonprofit organizations such as Planned Parenthood and "right to life" antiabortion groups generally utilize
a. informative advertising.
b. reminder advertising.
c. comparative advertising.
d. advocacy advertising.
e. specialty advertising.
25. The advertising medium that offers the highest informa tional content is
a. direct mail.
b. newspapers.
c. magazines.
d. radio.
e. television.
26. The so-called "sin" taxes on tobacco and alcohol have as their objective
a. revenue maximization.
b. profit maximization.
c. cost recovery.
d. providing market incentives.
e. market suppression.
27. Of the following, the method that uses a base-cost fig ure per unit and adds a markup to cover unassigned costs and to provide a profit is
a. marginal analysis pricing.
b. breakeven pricing.
c. modified breakeven pricing.
d. cost-plus pricing.
e. incremental-cost pricing.
28. A five pound bag of peanuts sells for $8, and the aver age variable costs are $4 per bag. If the total fixed costs are $80,000, the br eakeven point in production units is
a. 20,000.
b. 40,000.
c. 80,000.
d. 120,000.
e. 160,000.
29. In an industry with many competing brands, the pricing strategy that would be used for new products is
a. competitive.
b. functional.
c. penetration.
d. prestige.
e. cost-plus.
Part III. Short Answers. (10 points, 5 per question) . Answer two of the following three questions.
(a) Describe the product marketed by Arbor Acres Farms , Inc. and how they market it internationally (Dr. Paul Aho's presentation).
(b) What kind of wholesaler was the person owning Nort hern Produce/Mushroom, Inc. (video April 29) and what are some of the functions he performed?
(c) If you were to market a calendar to UConn students , what would it be and how would you price it? (you may borrow ideas from the C olachis Brothers video).
30. (5 points). Answer here.
31. (5 points). Answer here.
Have a good summer!