BUSN 311 COMPREHENSIVE QUESTIONS AND
ANSWERS SET A+
✔✔T/F: Acceptability and credibility of the message are the strengths of public relations
as a promotion tool - ✔✔True - Pros/Cons of public relations
Acceptability and credibility
✔✔T/F: In marketing communications, earned media refer to the positive brand
messaging that is produced and spread by paid consumers or by sponsored
organizations - ✔✔False - Categories of paid, owned, and earned media
✔✔T/F: Advertising is any paid form of nonpersonal presentation and promotion of
ideas, goods, or services by an identified sponsor - ✔✔True - Advertising definition
✔✔T/F: CPM stands for cost-per-million, which is the price of 1,000,000 advertisement
impressions (Exposures) - ✔✔False -CPM vs CPC
- cost per thousand
✔✔T/F: When marketers select advertising endorses, they should consider the cultural
meaning of an endorser together with his or her attractiveness and credibility - ✔✔True
- Criteria to choose endorser
✔✔T/F: Based on price, cost and margin information in the box, it is ore appropriate to
choose the option B as a sales promotion than the option A, if the company wants to
earn profits by selling this promotional item - ✔✔False - Battery examples:
Option A $10. Cost: $6 +$3 = Margin: $1 → Better option
Option B: 50%10. Cost: $6 +$5 = Margin: $1
✔✔T/F: According to the textbook and lecture, direct marketing refers to "direct
connections with carefully targeted individual consumers to obtain an immediate
, response rather than cultivate lasting customer relationships" - ✔✔False --> Direct
Marketing defintion
✔✔T/F: In marketing, disintermediation means a disagreement over goals, roles, and
rewards by channel members - ✔✔False --> Channel conflict definition
✔✔Which one is NOT an example of a fixed cost?
(Include correct options) - ✔✔Packaging
✔✔Select a graph that represents elastic demand
(Include inelastic demand) - ✔✔Price elasticity/inelastic graphs
✔✔Which on is the right pair for (a) and (b) in two different pricing approaches?
(Include factors (4)) - ✔✔Cost, Value
✔✔The case in the box is an example of _______ pricing procedure - ✔✔Cost-plus
pricing
Example - Predetermined margin image
✔✔Jorge Castilla willingly paid $1,099 for an iPhone EX Max on the day it hit the
market, even though it was far more expensive than cell phones he had bought in the
past. He wasn't concerned about the price; he just wanted to be one of the first on
campus to have this product. Consumers like Jorge are the target or firms using
_______________ pricing strategies - ✔✔Initial high price - market skimming
✔✔HP gains profits not by selling printers sold in affordable prices but by selling toners
and cartridges with charging them much highly than the production costs. This is an
example of ____________ pricing - ✔✔Captive product pricing
- Definition and scenario
✔✔________________ pricing refers techniques that adjust pricing continually to meet
the characteristics and needs of individual customers and situations - ✔✔Dynamic
pricing
✔✔The ___________________ mix is the specific blend of advertising, public relations,
personal selling, and direct-marketing tools that the company uses to communicate
customer value and build customer relationships persuasively - ✔✔Promotion mix
✔✔Based on the principle of IMC, marketers plan carefully blended mix of promotion
tools to: - ✔✔Purpose of IMC
✔✔In the new approach of the current marketing, which comes after STP strategy and
before choices of individual media - ✔✔Big Idea
ANSWERS SET A+
✔✔T/F: Acceptability and credibility of the message are the strengths of public relations
as a promotion tool - ✔✔True - Pros/Cons of public relations
Acceptability and credibility
✔✔T/F: In marketing communications, earned media refer to the positive brand
messaging that is produced and spread by paid consumers or by sponsored
organizations - ✔✔False - Categories of paid, owned, and earned media
✔✔T/F: Advertising is any paid form of nonpersonal presentation and promotion of
ideas, goods, or services by an identified sponsor - ✔✔True - Advertising definition
✔✔T/F: CPM stands for cost-per-million, which is the price of 1,000,000 advertisement
impressions (Exposures) - ✔✔False -CPM vs CPC
- cost per thousand
✔✔T/F: When marketers select advertising endorses, they should consider the cultural
meaning of an endorser together with his or her attractiveness and credibility - ✔✔True
- Criteria to choose endorser
✔✔T/F: Based on price, cost and margin information in the box, it is ore appropriate to
choose the option B as a sales promotion than the option A, if the company wants to
earn profits by selling this promotional item - ✔✔False - Battery examples:
Option A $10. Cost: $6 +$3 = Margin: $1 → Better option
Option B: 50%10. Cost: $6 +$5 = Margin: $1
✔✔T/F: According to the textbook and lecture, direct marketing refers to "direct
connections with carefully targeted individual consumers to obtain an immediate
, response rather than cultivate lasting customer relationships" - ✔✔False --> Direct
Marketing defintion
✔✔T/F: In marketing, disintermediation means a disagreement over goals, roles, and
rewards by channel members - ✔✔False --> Channel conflict definition
✔✔Which one is NOT an example of a fixed cost?
(Include correct options) - ✔✔Packaging
✔✔Select a graph that represents elastic demand
(Include inelastic demand) - ✔✔Price elasticity/inelastic graphs
✔✔Which on is the right pair for (a) and (b) in two different pricing approaches?
(Include factors (4)) - ✔✔Cost, Value
✔✔The case in the box is an example of _______ pricing procedure - ✔✔Cost-plus
pricing
Example - Predetermined margin image
✔✔Jorge Castilla willingly paid $1,099 for an iPhone EX Max on the day it hit the
market, even though it was far more expensive than cell phones he had bought in the
past. He wasn't concerned about the price; he just wanted to be one of the first on
campus to have this product. Consumers like Jorge are the target or firms using
_______________ pricing strategies - ✔✔Initial high price - market skimming
✔✔HP gains profits not by selling printers sold in affordable prices but by selling toners
and cartridges with charging them much highly than the production costs. This is an
example of ____________ pricing - ✔✔Captive product pricing
- Definition and scenario
✔✔________________ pricing refers techniques that adjust pricing continually to meet
the characteristics and needs of individual customers and situations - ✔✔Dynamic
pricing
✔✔The ___________________ mix is the specific blend of advertising, public relations,
personal selling, and direct-marketing tools that the company uses to communicate
customer value and build customer relationships persuasively - ✔✔Promotion mix
✔✔Based on the principle of IMC, marketers plan carefully blended mix of promotion
tools to: - ✔✔Purpose of IMC
✔✔In the new approach of the current marketing, which comes after STP strategy and
before choices of individual media - ✔✔Big Idea
