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Name _____________________ Social Security # ________________
Please read all questions carefully. You have three hours to complete this exam so please take your time and double check all your answers once you are finished. Make sure your name and social security number are on both the exam form and the answer sheet (scantron).
Caution: This is only a sample exam. It is intended only as a guide to the style of the final exam. The questions on the actual exam are going to be different. Solving this exam is not enough to prepare for the final exam. You must read the book chapters and lecture notes. Also, this exam contains only 20 questions. The final exam will have 50 questions.
1. The life cycle below is most likely a _____________
High learning product
Low learning product
Fashion product
Fad Product
Rotating Pattern product
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2. Dallas-based Dean Foods is one of the leading food and beverage companies in the United States. Its __________ includes soy products, coffee creamers, dips and dressing, pickles, sauce, ice cream, yogurt, sour cream and cottage cheese. Its fresh milk and cream __________ includes regular and flavored milks, lactose-free milk, buttermilk, and half and half.
A) product tangibility; product unit
B) product mix; product unit
C) product line; product mix
D) product unit; product tangibility
E) product mix; product line
3. Among consumer goods, advertising and wide distribution are especially important for:
A) durable goods.
B) unsought goods.
C) nondurable goods.
D) production goods.
E) semidurable goods.
4. The Upjohn Company first targeted men for its Rogaine topical solution, a prescription drug to restore hair growth, but later marketed this product to women. This is an example of which strategy?
A) Finding new users
B) Creating new use situations
C) Increasing use by existing customers
D) Modifying the product
E) None of the above
You are facing the following demand schedule:
Quantity Price
10 6
20 5
30 4
40 3
50 2
You are also facing the Average Cost table below
Quantity Average cost
10 1
20 2
30 3
40 4
50 5
5. Use the information given above. Your goal is profit maximization. You should produce:
10 units
20 units
30 units
40 units
50 units
6. Elasticity between 10 and 20 units is approximately (choose the number closest to your answer):
1.8
2.4
3.7
4.6
5.3
In this commercial, three men (approx. in their thirties) are in a parking lot. One of them is getting ready to leave in his car (Honda Civic). The other two men (led by elder of the two) interrogate the car owner (in a superior manner) about the cars additional features, to which the car owner responds by giving a technical description of the cars engine, to the surprise of the two men. Which of the following is likely to be true for the advertisement below?
It could be considered to be a reminder advertisement
It attempts to gain audience attention with sex appeal
It is likely to be a pioneering advertisement
It likely attempt to reinforce previous experience with Honda Civic
It is likely to be a comparative advertisement
Which is not used in pretests
jury tests
attitude tests
portfolio tests
theater tests
tests in which consumers are invited to view new television shows or movies in which test commercials are also shown.
Which of the following statements about marginal analysis is incorrect
As long as revenue received from an additional unit exceeds the marginal cost associated with that unit, the firm will wish to expand production.
Marginal cost, after an initial decline, will tend to rise due to inefficiencies in production and marketing associated with increased production
The message of marginal analysis is to operate up to the quantity and price level where marginal revenue equals marginal cost
Marginal analysis calls for identifying the level of output at which total revenue and total cost are equal and beyond which profit occurs.
If your goal is to encourage new product trial among risk-averse consumers, your best bet from sales promotion alternatives is:
samples
contests or sweepstakes
c. Continuity programs
d. point of purchase displays
e. product placement
West Coast Video and East Coast Video must simultaneously choose a pricing strategy. The matrix below describes their payoffs from each strategy combination:
East CoastPrice HighPrice LowWest CoastPrice High120
18070
190Price Low110
4060
60
The equilibrium is at:
Both firms pricing low
Both firms pricing high
West Coast pricing low and East Coast pricing high
West Coast pricing high and East Coast pricing low
Both c and d are equilibria
For non-durable goods, ___________ is essential, whereas for durable good, ______ is more critical (you can find the answer on p. 270).
TV advertising; radio advertising
Newspaper advertising; TV advertising
Consumer advertising and wide-distribution; personal selling
Sales promotion; reminder advertising
13. The Ann and Bob corporations compete in the market for widgets. They can each price high or price low. Ann is the row player and Bob is the column player. That means that Anns payoff is the top left number in each cell. Bobs payoff is the bottom right number in each cell. The payoffs to each possible scenario are given in the game matrix below. In equilibrium, ________________________________.
Ann would price low and Bob would price high.
Ann would price low and Bob would price low.
Ann would price high and Bob would price high.
Ann would price high and Bob would price low.
BobPrice HighPrice LowAnn
Price
High35
405
60
Price
Low45
7010
40
14. The demand curve below would call for what pricing strategy?
a. skimming
b. penetration
c. prestige
d. price lining
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15. You are facing the MARGINAL Cost and MARGINAL revenue table below
Quantity Marginal cost Marginal Revenue
5 25 60
10 35 50
15 40 40
20 50 30
25 65 20
To maximize profit, you should produce:
5
10
15
20
25
You are facing the following demand schedule:
Quantity Price
10 90
20 80
30 75
40 70
50 65
Marginal cost is the same as the average cost and is constant at 50.
16. Given the above demand schedule and cost information, the quantity that would maximize your profits is ________________.
a. 10
b. 20
c. 30
d. 40
e. 50
When deciding on the purchase of a new wireless pocket PC, Bob was among the very first. He is very highly educated, and makes purchase decisions based on information from Internet newsgroups, newspapers, and technical journals he subscribes to. Stan made his decision based on numerous informal social contacts, though he is not a leader in any social setting. He was among the first 50% of the population to buy the wireless pocket PC. Out of profiles of product adopters, Bob could best be described as __________ whereas Stan would best be described as ___________.
early adopter; majority
early innovator; late innovator
innovator; early majority
early majority; early adopter
late majority; laggard
18. Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. This is an example of:
A) Finding new users
B) Creating new use situations
C) Increasing use by existing customers
D) Modifying the product
Del Montes Barbecue Ketchup that contained finely chopped onions and was aimed at the heavy ketchup-eating segment (kids). That segment kids-- did not care for onions. Which of the reasons below is most likely the reason for this product failure?
a. Insignificant point of difference
b. Incomplete market and product definition
c. Too little market attractiveness (size and growth of mkt)
d. Poor execution of the marketing mix
e. Poor product quality on critical factors
Minute Maid squeeze-fresh OJ concentrate: advertising and packaging did not educate on how to use the product and as a result consumers did not know how to use it. Which of the reasons below is most likely the reason for this product failure?
a. Insignificant point of difference
b. Incomplete market and product definition
c. Too little market attractiveness (size and growth of mkt)
d. Poor execution of the marketing mix
e. Poor product quality on critical factors
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
There are 50 questions on the final exam.
PAGE
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