Chapter 13 Quiz

Which of the following reflects product-centric (as opposed to brand-centric) demand?

• a) “I really want The North Face’s new ski gloves”

• b) “I really need a way to stay warmer when I ski”

• c) “I only shop at L.L. Bean for winter clothes”

• d) “I need new ski gloves”

A new company with no existing customer should likely focus on:

• a) Loyalty building

• b) Demand generation

• c) Paid search

• d) Demand harvesting

A company has focused all its efforts on demand harvesting for a long while. It should now shift its efforts to include:

• a) Loyalty building

• b) Paid search

• c) Demand generation

• d) More demand harvesting

All else being equal, a marketing channel that has a high cost per exposure will have a ________ return on investment.

• a) High

• b) Low

A random sample of consumers will likely have a low customer concentration for Porsche because:

• a) Most people cannot afford such an expensive car

• b) Porsche is not a respected brand

• c) Porsche only appeals to young males

• d) Porsche actively tries to prevent most people from buying its cars

A consumer sees an ad and purchases the product featured in the ad, but he would have purchased the product anyway even if he hadn’t seen the ad. The ad is:

• a) Not effective because the ad was poorly targeted

• b) Effective because the consumer purchased the product

• c) Effective because the ad caused the consumer to purchase

• d) Not effective because the ad did not influence his behavior

An ad that commands a consumer’s direct attention is likely to be:

• a) Less effective than an ad that is only seen in a consumer’s peripheral vision

• b) More effective than an ad that does not command direct attention

• c) Ineffective in almost all circumstances

• d) Effective for all audiences

An advantage of paid search marketing is that:

• a) Returns are typically seen immediately

• b) It is the least expensive channel on a cost-per-exposure basis. 

• c) The high start-up costs make it difficult for competitors to bid on profitable keywords

• d) There is very little competition for the highest-value keywords

Display advertising has a low exposure effectiveness, but it may still be cost-effective because:

• a) Display ads cost the same regardless of exposure frequency

• b) The cost per exposure is low

• c) Customer concentration is 100%

• d) It requires only a flat fee

A mobile application that gets installed and used regularly by a large number of customers may still not be profitable if:

• a) The convenience of using the app increases visit frequency

• b) Using the app does not increase users’ spending

• c) The conversions on the application are higher-value than on the website

• d) It produces conversions from a new group of customers