Question: #978

ECO312 Final Exam Complete Solution

1. The purpose of profitability control is to

understand the efficiency of the sales force, advertising, sales promotion, and distribution

evaluate and improve the spending efficiency and impact of marketing expenditures

examine where the company is making and losing money

examine whether the company is pursuing its best opportunities with respect to markets, products, and channels

2. ________ is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments.

Marketing implementation

Market watch

Marketing control

Test marketing

3. A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries. This phenomenon is called a(n)

price escalation problem

market pricing problem

opportunity cost problem

tactical pricing problem

4. ______ is an obligation to act in a way expected of a reasonable person.

Liability

Duty

Litigation

Reliance

5. Which characteristic of a marketing audit is described by the methodical evaluation of the macro- and micromarketing environments, objectives and strategies, system, and activities?

Periodic

Systematic

Comprehensive

Independent

6. The marketing audit reviews six components of the overall marketing arena including the marketing environment, marketing strategy, marketing organization, marketing systems, marketing productivity and

marketing control

marketing function

marketing development

marketing mix

7. Marketing effectiveness rating instruments and marketing audits are approaches to

efficiency control

annual-plan control

profitability control

strategic control

8. Your firm has decided to enter the international market with your product called Trema, a combination of a pocket organizer and cell phone. Even though the product has been a huge success in the home country, market research suggests some changes may be required before it can be introduced in Europe. Your CMO is of the opinion that the product requires certain extra features and the product will also have to be marketed differently. Your CMO is advocating

dual adaptation

forward adaptation

straight extension

product standardization

9. Which of the following is true regarding a marketing audit?

It identifies the most-needed improvements and incorporates them into a ive-action plan with short- and long-run steps.

It focuses on a firm’s macro marketing environment.

It focuses on analysis of those marketing activities that have failed to produce adequate results.

It relies on feedback from company managers for data and opinions.

10. To protect a creative work from being published in any other manner, a company or author would ____________ the material.

patent

copyright

trademark

freelance

11. A PR practitioner may be subject to conspiracy in these situations: when the practitioner participates in illegal action, counsels or guides the illegal policy, takes part in it, or

imagines illegal policy may occur

uncovers illegal action

unknowingly works with a corrupt agency

cooperates to further illegal action

12. Rising customer expectations, evolving employee goals and ambitions, and tighter government legislation and pressure are driving companies to

operate flatter organizations

manage shorter supply chains

operate leaner manufacturing facilities

practice a higher level of corporate social responsibility

13. Which of the following is an example of a distribution metric used for measuring the performance of marketing plans?

Stock cover in days

Customer acquisition

Effective reach

Market share

14. Which of the following is an example of a communication metric used for measuring the performance of marketing plans?

Response rate

Trial rate

Sales growth

New customer gains

15. A ________ is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance.

marketing audit

marketing metric

marketing plan

market-based scorecard analysis

16. Straight extension of the product means

introducing a customized product to the foreign market with existing marketing strategy

introducing the product to the foreign market with major changes to the product

introducing a customized product to the foreign market with a new marketing strategy

introducing the product to the foreign market without any changes to the product

17. A marketing audit is typically best conducted by a(n)

internal marketing executive

internal department

a. self-audit

outside consultant

18. Cadbury's "Sports for Schools" promotion offered sports and fitness equipment for schools in exchange for vouchers. The problem was that the public and media saw a perverse incentive for children to eat more chocolate, a product associated with obesity. Which of the following best summarizes Cadbury's problem?

Consumers resented being sold an inferior product on the back of a cause-marketing program.

Customers questioned the link between the product and the cause and saw the firm as self-serving and exploitive.

Customers felt that the cause was not in sync with the company’s brand image.

Consumers did not value the cause Cadbury was promoting.

19. Which of the following refers to the ability to meet humanity's needs without harming future generations?

Greenwashing

Ecological footprinting

Sustainability

Scalability

20. The purpose of strategic control is to

understand the efficiency of the sales force, advertising, sales promotion, and distribution

examine whether the company is pursuing its best opportunities with respect to markets, products, and channels

examine where the company is making and losing money

evaluate and improve the spending efficiency and impact of marketing expenditures

21. Which of the following is likely to be an important trend in marketing in the future?

Marketing science

Marketing intuition

Manual marketing

Mass marketing

 

Solution: #982

DEVRY ECO312/ECO312 Final Exam Complete Solution

Question 1.1. (TCO 1) When a state government chooses to build more roads, the required resources are no longer available for spending on public education. This dilemma illustrates the concept of (Points : 4)

production expenses.

unemployment issues.

unintended consequences.

opportunity cost.

Question 2.2. (TCO1) Which is not a factor of production? (Points : 4)

Money

Land

Labor

Capital

Question 3.3. (TCO1) A point on the production possibilities curve is (Points : 4)

attainable and resources are fully employed.

attainable, but resources are unemployed.

unattainable, but resources are unemployed.

unattainable and resources are fully employed.

Question 4.4. (TCO1) A basic characteristic of a command system is that (Points : 4)

wages paid to labor are higher.

government owns most economic resources.

free markets are never permitted in a command economy.

government planners play a limited role in deciding what goods will be produced.

Question 5.5. (TCO 2) Which is consistent with the law of demand? (Points : 4)

A decrease in the price of tacos causes no change in the quantity of tacos demanded.

An increase in the price of pizza causes an increase in the quantity of pizza demanded.

An increase in the price of hamburgers causes a decrease in the quantity of hamburgers demanded.

A decrease in the price of turkey sandwiches causes a decrease in the quantity of turkey sandwiches demanded.

Question 6.6. (TCO 2) What combination of changes would most likely decrease the equilibrium price? (Points : 4)

When supply decreases and demand increases

When demand increases and supply increases

When demand decreases and supply decreases

When supply increases and demand decreases

Question 7.7. (TCO 2) When the price of movie tickets in a certain town was reduced, the movie theaters' revenues did not change. This suggests that the demand for movie tickets in that town has a price-elasticity coefficient of (Points : 4)

1.0.

greater than 1.

0.5.

zero.

Question 8.8. (TCO 2) The price elasticity of demand increases with the length of the period considered because (Points : 4)

consumers' incomes will increase over time.

the demand curve will shift outward as time passes.

all prices will increase over time.

consumers will be better able to find substitutes.

Question 9.9. (TCO 2) A purely competitive firm's output is such that its marginal cost is $4 and marginal revenue is $5. Hint: remember that MR = P for Pure Competition and the Profit Maximizing rule. Assuming profit maximization, the firm should (Points : 4)

cut its price and raise its output.

raise its price and cut output.

leave price unchanged and raise output.

leave price unchanged and cut output.

Question 10.10. (TCO 2) Which would definitely not be an example of price discrimination? (Points : 4)

A theater charges children less than adults for a movie.

Universities charge higher tuition for out-of-state residents.

A doctor charges for services according to the income of patients.

An electric power company charges less for electricity used during off-peak hours when production costs are lower.

Question 11.11. (TCO 3) In the kinked demand model of oligopoly, if one firm increases its price, the most likely reaction of the other firms will be to (Points : 4)

decrease their prices.

increase their prices.

not change their prices.

reduce their quantity.

Question 12.12. (TCO 3) In the s...

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