Measuring Marketing Effectiveness Through Ch.13 Test Bank 2e

Applied Marketing, 2e (Padgett)

Chapter 13 Measuring Marketing Effectiveness Through Metrics

1) Which are the short-term, narrow, operational decisions and actions that are used as part of larger marketing strategies?

A) Operational strategies

B) Metrics

C) Tactics

D) Promotions

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

2) From where do tactical objectives flow?

A) Strategic objectives

B) Operational objectives

C) Tactical strategies

D) Tactical metrics

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

3) The way in which marketing managers want their products to appear in the future is called

A) tactical objectives.

B) brand enhancement.

C) strategic management.

D) product extension.

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

4) Consistency between strategic and tactical objectives is important because

A) it helps managers control the flow of resources.

B) it helps ensure a consistent message is being delivered.

C) it helps with the management of brands.

D) it helps with advancing ideas to the execution phase.

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

5) When companies decide to make use of metrics in their decision making, it is important that the metrics meet which criteria?

A) Easily implemented and clearly understood

B) Reliable and unbiased sorting of data

C) Statistical validation and interpretation

D) Credible collection of information

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

6) Which of the following terms refers to the short-term, narrow operational decisions and actions that are used as parts of longer marketing strategies?

A) Tactics

B) Metrics

C) Objectives

D) Strategies

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

7) Which is common of all marketing objectives?

A) They are short-term and used as part of a larger marketing strategy.

B) They relate to sales and profits.

C) They specific how marketing managers want the future to look in some way.

D) They are open-ended in terms of time frames.

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

8) Why is consistency between strategic and tactical objectives important?

A) Because strategy naturally flows from tactics.

B) Consistency assures that tactics do not work against strategies.

C) Because they are develop simultaneously.

D) Consistency is a key component of measurement.

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

9) Why is it necessary that data relating to tactical outcomes be readily available?

A) Tactical outcomes typically have short time horizons.

B) Because the data is typically, and preferably, external.

C) Because they normally relate to qualitative data.

D) All of these.

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

10) Managers should abide by these principles in interpreting metrics for purposes of measuring marketing effectiveness.

A) Use absolutes versus ranges for outcomes.

B) Stick strictly to the numbers.

C) Ignore their instincts.

D) None of these.

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Application

11) What do we mean when we say that the metrics we use for measuring the effectiveness of marketing tactics be appropriate?

A) They must be suitable for assessing the objectives at hand and should pertain to the objectives as precisely as possible.

B) They must be easily implemented and clearly understood.

C) They must be explicitly outlined as part of the marketing strategy statement.

D) They must be relevant to the objective.

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

12) Which of the following statements most accurately describes the process for measuring marketing effectiveness?

A) Tactical objectives set the general plan, but strategy drives the choice of specific actions.

B) The process for measuring effectiveness is repetitive.

C) Managers should be flexible enough to choose appropriate metrics once tactics have been executed.

D) Managers must ignore gut instincts and focus on the absolutes that metrics provide.

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

13) Research has shown that Millennials are influenced more by information on social networking sites than by advertisements. This is why a popular wedding gown company asks brides to post wedding day photos on its Instagram page and to share their experiences with the product. This exemplifies which step of the process for measuring marketing effectiveness?

A) Select appropriate metrics

B) Set investment level

C) Execute tactics

D) Collect data

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

14) Which is the percentage of the total sales in a product category going to a particular brand?

A) Category sales

B) Sales penetration

C) Brand metrics

D) Market share

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

15) Which indicates returns attributable directly to marketing investment?

A) Return on investment

B) Return on marketing investment

C) Advertising-to-sales return

D) Sales-to-spending return

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

16) Which of the following is NOT a way for managers to measure their overall effectiveness?

A) Return on equity

B) Market share

C) Return on investment

D) Return on marketing investment

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

17) Marketers rely most frequently on which type of metrics?

A) Market shares

B) Relative market shares

C) Projected market shares

D) Market growth

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

18) Even though marketing metrics can provide valuable information when evaluating marketing success, what key area do these metrics ignore?

A) The competition

B) The economy

C) The customer

D) The supply chain channels

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

19) Which of the following metrics allows managers to consider how marketing tactics affect a brand's standing relative to competitors?

A) Return on marketing investment

B) Cost per thousand

C) Category volume

D) Market share

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

20) What is a key benefit of receiving sales data in near real time?

A) You can provide daily reports to senior management on tactical results.

B) You can make daily adjustments to your tactics.

C) You can use metrics previously reserved for strategic level planning to make tactical decisions.

D) You can compare your results to your competitors' results.

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

21) Which metric do marketing managers rely on most heavily to gauge overall success?

A) Return on investment

B) Market share

C) Relative market share

D) Return on marketing investment

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

22) Which is the most relevant metric for comparing tactical objectives relative to competitors?

A) Market share

B) Relative market share

C) Return on investment

D) Return on marketing investment

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

23) Why must metrics of financial performance be taken in context?

A) Short-term losses are common and relate to normal business cycles.

B) Products often have evolved into the next stage of the product life cycle.

C) They are heavily weighted by interest rates and financial markets.

D) Sometimes a company's financial metrics to not reflect the company's true outlook.

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

24) Which statement about using sales as an overall measurement of tactical success is true?

A) Because of the time lag associated with sales information, metrics using sales numbers are reserved for strategic level planning.

B) The use of sales numbers is the best way for managers to get a complete picture of the effectiveness of tactical decisions.

C) The relative market share metric views expenses as investments.

D) Return on investment and return on marketing investment metrics consider both sales and expenses.

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

25) Company Z sells $2 million dollars of Brand A each year in a category that sells $20 million dollars per year. What is Company Z's market share in that category?

A) 1%

B) 9%

C) 10%

D) Sales must first be converted into units before calculation.

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

26) Company Y invested $10 million in the manufacture and marketing of Product B whose 2,000,000 users have produced a net profit of $1,000,000. What is the return on investment for Product B?

A) 1%

B) 2%

C) 10%

D) 20%

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

27) What is the best similarity between market share and relative market share?

A) Consideration of competitive products and services

B) Consideration of investments

C) Inclusion of sales and expenses

D) Inclusion of digital marketing results

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

28) Product ABC earns a gross profit of $12 million with marketing expenses of $10 million. What is the return on marketing investment for Product ABC?

A) 20%

B) 30%

C) 67%

D) 80%

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

29) Company N sells 4 million units of Product L per year. Its top three competitors sell a combined 16 million units of similar product. What is Company N's relative market share?

A) 2%

B) 20%

C) 25%

D) 50%

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

30) Why should marketing managers look beyond sales in many cases when assessing results of marketing tactics?

A) It is difficult to relate sales changes directly to most types of promotional efforts.

B) Market share is typically a more accurate measure of performance.

C) Sales figures do not exist in isolation but in the context of many other factors.

D) Sales is not the ultimate objective of marketing.

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Synthesis

31) During the last fiscal year, your market share was 10%, relative to competitors. You improved your product and used new promotional tactics to better compete with the top five products sold in your target market. Current data tells you that your company sold 2 million units in the past year while your top five competitors sold a combined 8 million units. Do you consider last year's marketing mix efforts to be successful overall?

A) Yes, your relative market share increased from 10% to 20%.

B) Unclear; your relative market share remained the same.

C) No, your relative market share decreased from 10% to 2%.

D) There is not enough data regarding the specific marketing mix elements.

Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance.

Section Reference: Measuring General Tactical Success

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

32) Which gives the percentage of a particular target group that purchases a brand for the first time?

A) Brand trial rate

B) Market penetration rate

C) Brand growth rate

D) Brand development index

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

33) Which metric compares a brand's performance in a target group to brand performance among all target groups?

A) Brand trial rate

B) Market penetration rate

C) Brand growth rate

D) Brand development index

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

34) Which metric for product-related tactical success does NOT relate directly to the target market?

A) Brand trial rate

B) Market penetration rate

C) Brand growth rate

D) Brand development index

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

35) Which metric for product-related tactical success is NOT measured in percentage terms?

A) Brand trial rate

B) Market penetration rate

C) Brand growth rate

D) Brand development index

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

36) Market penetration is the percentage of the total target market to

A) members of the target market who are aware of the product.

B) members of the target market who are purchasing on a continuous (at least one re-buy) basis.

C) members of the target market who have switched from a competitive brand.

D) members of the target market who have tried the product at least once.

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

37) A marketing manager's investment in benefit-delivery capabilities of a brand should lead to

A) adoption of the brand.

B) development and extension of new products.

C) sales growth in underperforming products.

D) rebirth of older brands.

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

38) Which of the following is NOT a reason why managers use metrics?

A) Assess brand awareness

B) Assess sales growth

C) Assess consumption of product

D) Access adoption of product

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

39) By examining market penetration, a company can determine

A) the percentage of a target market who has tried the product at least once.

B) the percentage of customers who show brand loyalty.

C) the percentage of a market who uses the product most often.

D) the percentage of customers enrolled in a loyalty or reward program.

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

40) To make meaningful comparisons using the brand development index, how many distinct target market groups must be included in the calculation?

A) 0

B) 1

C) 2

D) 3

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

41) What is required to make meaningful comparisons using BDI?

A) Three or more distinct target markets

B) Information on competitive sales

C) Previously-specified objectives

D) The percentage of brand sales to total market sales

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

42) The decision to use brand trial rates will provide marketing managers with which type of useful information?

A) An indication of new-user acceptance

B) The results of new consumer preferences

C) Evidence of the attractiveness of the brand

D) A summary of consumer experiences with the product

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

43) Company X has a target population of 1,000,000 for Brand C. It has determined that 100,000 people have tried Brand C for the first time and another 100,000 have tried Product C more than once. What is the market penetration rate for Brand C?

A) 1%

B) 5%

C) 10%

D) 20%

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

44) Company W sells 20,000 units of Brand D this month, which is twice what it sold last month. What is the brand growth rate of Product D?

A) 100%

B) 10%

C) 30%

D) 1%

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

45) Company OLD estimates that 50,000 people from a target group of 10 million tried Product NEW last year. What is the brand trial rate for Product NEW?

A) .05%

B) .5%

C) 5%

D) 50%

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

46) You are the marketing manager at a company that sold 44,000 units of a product this year compared to 40,000 units last year. You know that the overall product category grew by 25% in the same timeframe. Based on your brand growth, what is the best response?

A) Since you are losing ground to your competitors, you consider additional investments or other tactical adjustments.

B) Since your growth is well behind that of your competitors, you eliminate manufacture of your product and invest in more promising market offerings.

C) Since your growth is ahead of your competitors, you do nothing.

D) Since your growth is significantly ahead of your competitors, you decrease product investment there and move the monies to other, more needy products.

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

47) You are the marketing manager at a company with three target markets and a tactical objective to increase penetration to the target group. Target A has 5,000 people in it and total annual sales to A is $50,000. Target B has 10,000 people in it and accounts for annual sales of $20,000. Target C has 20,000 people in it and annual sales of $30,000. Based on BDI calculations, what is your best response?

A) Since Target A has a higher-than-average purchase rate, you consider reducing tactical investments related to that market and redirecting those funds to Targets B and C.

B) Since Target A has a BDI higher than Targets B and C, you consider expanding to new locations to find people more like Targets B and C.

C) Since Target B has a purchase rate of 1, you must recalculate BDI with information pertaining to at least one additional target market.

D) Since Target C has a purchase rate greater than 1, you increase tactical investments related to that market for better market penetration.

Learning Objective: 13.3 Explain and apply product-related metrics in marketing.

Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

48) Which measures the number of times the inventory for a product is completely replenished in a given period?

A) Stockturn rate

B) Stockout rate

C) Stockout days

D) Stock metric

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

49) Which measures how well-exposed a brand is within retail stores?

A) Relevant outlet rate

B) Category shelf facings

C) Category volume

D) All of these

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

50) Which shows the ratio of the percentage change in quantity to the percentage change in price?

A) Quantity elasticity

B) Percentage change in price

C) Percentage change in quantity

D) Price elasticity

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

51) Which indicates the number of units that must be sold at a specified price to just cover costs?

A) Breakeven revenue

B) Breakeven quantity

C) Breakeven sales

D) Variable cost quantity

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

52) Which of the following best describes price elasticity?

A) It measures how responsive people are to price changes.

B) It evaluates the quality of products sold over a period of time.

C) It provides a percentage of products sold over time.

D) It is a ratio of discounted products to full-price products sold.

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

53) A breakeven analysis can provide what important information?

A) The level below which prices cannot fall

B) The adjusted price a company can make on certain products

C) The various products that can be discounted

D) The number of units that must be sold

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

54) What does a stockturn rate measure?

A) The percentage of total days an outlet is out of stock of an individual SKU

B) How quickly individual SKUs move through a store

C) How many units of an individual SKU a target customer buys in a set period

D) The average number of times the inventory of an entire store is replenished

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

55) Which metric measures consumers' responsiveness to changes in price?

A) Price elasticity

B) Percent change in quantity

C) Breakeven quantity

D) Breakeven revenue

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

56) Marketers must not only balance the revenue and cost perspectives of pricing, but must also

A) the competitive and consumer dimensions.

B) the learning curve effects on pricing.

C) the stage of the product life cycle.

D) research and development costs.

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

57) When in a situation with relatively elastic demand, marketing managers sometimes reduce price as an effective competitive tool. What is the potential downside of this approach?

A) Reduced price may not result in sufficient incremental unit sales to increase total revenue.

B) It can lead to potentially damaging price wars.

C) It may negatively impact brand image.

D) All of these

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

58) What is the primary intent of performing a breakeven analysis?

A) To maximize productivity

B) To provide a rough idea of the level below which prices cannot fall

C) To facilitate the allocation of fixed costs

D) To determine price elasticity

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

59) In a breakeven analysis, when the total cost curve intersects the total revenue curve, profits will be zero. What is also true at the point of intersection?

A) Losses will also be zero.

B) Losses will be at their maximum level.

C) A price increase is justified.

D) The product has moved into the decline stage of the PLC.

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

60) Company V operates 100 stores. During a recent 30-day period, Product E was out of stock at 20 of those stores for 15 days. Which of the following is the correct measurement of stockout days for Product E?

A) 15%

B) 20%

C) 50%

D) 80%

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

61) Which of the following statements most accurately describes breakeven analysis?

A) It provides marketing managers an exact measurement of the level at which prices cannot fall.

B) When the total cost curve intersects with the total revenue curve, profits will be zero, but losses will be much greater.

C) BEQ and BE$/BER enable estimations of when investments will cover costs under different cost, demand, and price scenarios.

D) Prices not only help cover costs, but tend to increase demand.

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

62) Company P sells Product J for $5 and achieves weekly sales of 100 units. When the price is lowed to $4, weekly sales increase to 200 units. What is the percent change in price?

A) 2.5%

B) 5%

C) 25%

D) 50%

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

63) Why is it important for managers to understand how consumers respond to changes in price for a product?

A) Because if pricing is relatively inelastic, they can use price as a competitive tactic.

B) Prices may change frequently in response to changing costs, competition, or other factors.

C) Because if pricing is relative elastic, profits may be increased by increasing price.

D) Because price is always the most important element of the marketing mix.

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

64) You are the brand manager for Product A. You have enjoyed relatively stable market conditions until a competitor introduced Product B. You need to decide whether or not to compete based on price. Historical data shows you that each week, retailer XYZ sells 1,000 units of Product A for $5. When the price was lowered to $4, weekly sales increased to 1,200 units. What is the best course of action based on metrics?

A) Since price elasticity equals 0.8, demand for Product A is relatively inelastic, which means buying behavior is relatively unaffected by changes in price. You should pursue other aspects of the marketing mix.

B) Since price elasticity equals 1.25, demand is relatively elastic, which means price is a potentially effective competitive tool. You should pursue a price-war strategy while continuing to monitor relevant metrics.

C) Since price elasticity equals 1, changes in price do not lead to changes in demand. You should pursue other aspects of the marketing mix.

D) Since price elasticity equals 8, demand for Product A is relatively inelastic, which means buying behavior is relatively unaffected by changes in price. You should increase the price of Product A to increase sales and profits for the company.

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

65) Company ACE identifies 2,000 retail outlets frequented by members of its target market. Total category sales at these stores equals $3 million. Of all the relevant retailers, 1,200 carry Company L's brands. Total category sales at these stores equals $2 million. Which of the following is the most accurate interpretation of this data?

A) Stores carrying ACE brands account for 67% of category sales. Since these stores represent only 60% of all relevant outlets, the brand is in the right retail stores.

B) Stores carrying ACE brands account for 60% of category sales. Since these stores represent 67% of all relevant outlets, ACE should consider moving its brand into other stores to improve sales.

C) Stores carrying ACE brands account for 33% of category sales. Since these stores represent 40% of all relevant outlets, ACE should consider moving its brand out of those stores to those with better access to the target market.

D) Stores carrying ACE brands account for 40% of category sales. Since these stores represent only 33% of all relevant outlets, the brand is in the right retail stores.

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

66) Which of the following is NOT a metric used to assess the logistical performance of distribution channels?

A) Stockturn rate

B) Stockout rate

C) Stock keeping unit rate

D) Stockout days

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

67) Which of the following metrics is NOT expressed in percentage terms?

A) Stockturn rate

B) Stockout rate

C) Stockout days

D) All are expressed in percentage terms.

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

68) Marketing managers want the optimal level of distribution intensity consistent with

A) maximizing stockturn rates.

B) brand image.

C) minimizing stockouts.

D) competitive forces.

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

69) Which of the following is NOT a metric that marketing managers can use to identify supply chain problems?

A) Stockturn days

B) Stockturn rates

C) Stockout rates

D) Stockout days

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

70) Which of the following best describes distribution intensity?

A) The number of retail outlets that carry a particular brand

B) The level of competition seeking entry to the outlet

C) The percentage of sales a brand generates

D) The volume of sales relative to shelf space provided for products

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

71) A metric that can be used to assess distribution intensity is

A) category volume.

B) stockout rate.

C) category rate.

D) category outlet rate.

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

72) How do marketers view frequent stockouts?

A) Positively, as they indicate strong consumer demand.

B) Positively, as they reflect the potential for higher factory capacity utilization.

C) Negatively, as they represent lost sales and poor supply-chain efficiency.

D) Neither positively nor negatively, as they're a given in business.

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

73) If a marketing manager at Target wants to determine how quickly a product moves through the store, they would examine which metric?

A) Stockturn rate

B) Stockout rate

C) Stock inventory

D) Stockout

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

74) Company U has 100 outlets. Half of those outlets carry Brand F. Company U allots Brand F 5 shelf facings out of the 50 facings it allots for all brands in that category. What is the percentage of category shelf facings for Brand F?

A) 5%

B) 10%

C) 25%

D) 50%

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

75) Which of the following statements most accurately describes price elasticity?

A) Information necessary for calculations is not readily available.

B) It is the most important price metric.

C) When demand is relatively elastic, people are relatively stable in their buying behavior.

D) When elasticity is less than one, price is an effective competitive tool.

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

76) Company O sells Product K for $5 and achieves weekly sales of 100 units. When the price is lowed to $4, weekly sales increase to 200 units. What is the measure of price elasticity?

A) 1

B) 2

C) 5

D) 25

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

77) You own a small grocery store and sell many items that earn low margins. To earn solid financial returns, you seek products with

A) high stockturn rates.

B) high stockout rates.

C) low category volume.

D) low relevant outlet rates.

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

78) During the month of March, Retailer M sells $25,000 of SKU MM and keeps an average inventory of SKU MM worth about $5,000. How many times did Retailer M replenish SKU MM during March?

A) 3

B) 4

C) 5

D) 6

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

79) Retailer K operates 1200 stores, each carrying SKU P. During July, 300 stores reported stockouts of SKU P. Calculate the stockout rate.

A) 25%

B) 30%

C) 33%

D) 40%

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

80) What is the difference between the stockout rate metric and the stockout days metric?

A) The number of products available for measure

B) The types of products to which the measurements can be applied

C) The types of retail outlets that can use each measurement (mass merchandiser, category killer, etc.)

D) The level of aggregation to which the measurements can be applied (single store, entire chain, etc.)

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

81) Company L identifies 1,500 retail outlets frequented by members of its target market. Of those, 750 carry Company L's brands. What is the relevant outlet rate?

A) 20%

B) 30%

C) 40%

D) 50%

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

82) Company L identifies 1,500 retail outlets frequented by members of its target market. Total category sales at these stores equals $2 million. Of all the relevant retailers, 750 carry Company L's brands. Total category sales at these stores equals $1.5 million. What is the category volume rate for Company L?

A) 25%

B) 50%

C) 75%

D) 90%

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

83) Company K sells Product N for $4.50 and achieves weekly sales of 100 units. When the price is lowed to $3, weekly sales increase to 150 units. What is the percent change in quantity?

A) 25%

B) 33%

C) 50%

D) 66%

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

84) Company J sells Product O for $500. It incurs monthly fixed costs of $500,000. A production run of 10,000 units creates variable costs of $1 million. Calculate breakeven revenue (BER).

A) $400,000

B) $635,000

C) $2,500,000

D) $25,000,000

Learning Objective: 13.4 Explain and apply price-related metrics.

Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

85) You are the brand manager for Product XYZ, which sells 8 million units in a category that sells 20 million units per year. Product XYZ is available at 500 outlets of your primary retailer. Last month, 25 stores reported stockouts. According to Nielsen researchers, the retailer allots 4 shelf facings to XYZ out of the 40 for all brands in the category. What is the best course of action based on metrics?

A) Product XYZ has a high market share of 40%, but a low category shelf facing rate of 10%. Further, you are unhappy with a stockout rate of 5%. You consider paying higher slotting allowances to the retailer for more shelf locations because you know that high market share with fewer facings increases the possibility of stockouts.

B) Product XYZ has a high market share of 40%, but a low stockout rate of 10%. You decide that your current marketing efforts are effective and make no changes.

C) Product XYZ has a low market share of 25% and a reasonable category shelf facing rate of 10%. The high stockout rate of 5% is concerning and you consider moving your product to another retail type.

D) Product XYZ has a low market share of 25% and a reasonable category shelf facing rate of 40%. While you are unhappy with the stockout rate of 5%, you do not have enough information and need to peruse other metrics before you can proceed.

Learning Objective: 13.5 Explain and apply channel-related metrics.

Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

86) Which measures schedule intensity and is the product of reach and average frequency?

A) Gross impressions

B) Average frequency

C) Gross ratings points

D) Cost-per-thousand

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

87) Which is used to compare media costs?

A) CPM

B) CPI

C) CPC

D) CPK

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Covering the Cost of Delivering Benefits to Customers

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

88) Which of the following statements regarding Gross Ratings Points (GRPs) is true?

A) They do not depend on the size of the target market.

B) They are the product of reach and frequency.

C) Reach is the sum of the ratings expressed as percentages in the calculation.

D) All three statements are true.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

89) What are the components of schedule intensity?

A) Reach and frequency

B) Impression and ratings

C) Timing and scheduling

D) Exposure and impressions

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

90) Which media metric could be used to determine the effects of an advertisement shown during a popular television show?

A) Average frequency

B) Average impressions

C) Average rating points

D) Average size of viewing audience

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

91) When measuring the effectiveness of traditional media advertising, where should the focus be placed?

A) On advertising rather than the creative content

B) On content instead of number of impressions

C) On style of the advertisement rather than content

D) On impressions in place of message

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

92) Which of the following terms applies to the notion that one advertisement is seen once by one person during a given period of time?

A) Reach

B) Frequency

C) Bounce rate

D) Impression

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

93) Which are the two components of schedule intensity that give an indication of how heavy a brand's media exposure is?

A) Gross ratings points and targeted ratings points

B) Gross impressions and targeted impressions

C) Gross impressions and frequency

D) Reach and frequency

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

94) Why is it dangerous to evaluate media solely based on CPM?

A) Most media don't have accurate information on how many people they reach.

B) Media differ vastly in their abilities to communicate information.

C) It doesn't take into account the circulation of the media.

D) Costs can vary among different advertisers, based on the number of buys.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

95) What can we say about evaluating outdoor advertising based on CPM?

A) It doesn't take into account the size of the ad.

B) It can vary significantly based on the location of the advertising.

C) It is inexpensive but probably less effective in delivering creative impact compared to other media like television.

D) It cannot be evaluated using CPM as a metric.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

96) Why is it more difficult to estimate frequency with magazine advertising?

A) Magazines may be picked-up and read many times.

B) It does not take into account pass-along readership.

C) Readers are more likely to ignore advertisements.

D) Some magazines are monthly and others are bi-monthly.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

97) What is a primary cause for high abandonment rates?

A) A webpage may load too slowly.

B) The webpage may require information the visitor is unwilling to provide.

C) The interaction may become too long or complicated.

D) All of these.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

98) Why does measuring effectiveness in traditional media advertising focus on exposure of advertising versus its creative content?

A) Content is judged based on its efficiency versus its effectiveness.

B) It is typically very difficult to change content once it's completed.

C) There is no standard for measuring creative content.

D) Because content can vary greatly depending on your target audience.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

99) How does the bounce rate give context to clickthrough rates?

A) The bounce rate is deducted from the clickthrough rate when advertisers pay for traffic driven to their website.

B) The bounce rate is important in robotic bidding for search engine marketing (SEM).

C) It identifies customers who decided to visit a competitive website.

D) It sets aside site visitors who reached a website by mistake or found the content uninteresting.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

100) Which of the following statements most accurately describes promotion-related metrics?

A) GRP depends on the size of the target market.

B) CPM measures the cost of each 1,000,000 impressions.

C) Reach and impression are the two components of schedule intensity.

D) Estimating frequency for print media is exceptionally difficult.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

101) Company T runs two television commercials during popular Program G, which attracts 75% of a target market of one million. What is the average frequency of exposure?

A) 1,500,000

B) 750,000

C) 15

D) 1.5

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

102) What is the primary similarity between gross impressions and gross ratings points?

A) They measure reach and frequency.

B) They primarily are used with digital promotions.

C) They measure advertising's creative content.

D) They are best for determining frequency in print ads.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

103) Program WOW attracts 10% of a target market of 1 million. An advertiser buys 10 commercials. Calculate gross impressions.

A) 1,000

B) 10,000

C) 1,000,000

D) 10,000,000

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

104) You are a media planner for Company XYZ with an objective of achieving a gross ratings points (GRP) level of 100. According to Nielsen, the television programming featuring three commercials attracts 50% of a target market of 10 million. What is the best course of action based on metrics?

A) With a GRP of 80, you have fallen short of your media objective of 100. This means you need to reconsider the reach and frequency of your television commercials.

B) With a GRP of 80, you have fallen short of your media objective of 100, This means you should consider increasing the size of your target market.

C) With a GRP of 150, you have met your media objective and do not need to change your current course of action.

D) With a GRP of 150, you have met your media objective, but should add CPM (cost per thousand) measures to your considerations.

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

105) Which indicates browser contacts with a website?

A) Visitors

B) Page views

C) Impressions

D) Hits

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

106) Which indicates an estimate of the percentage of visitors to a site who navigate away quickly without venturing beyond the landing page?

A) Clickthrough rate

B) Abandonment rate

C) Bounce rate

D) Visitor rate

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

107) Which indicates the number of people who go to a website and view at least some of the information it contains?

A) Visitors

B) Hits

C) Page views

D) Conversions

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

108) What is the purpose of CPM as a promotion metric?

A) It is used to compare media costs.

B) It can determine the value of the impressions the product receives.

C) It predicts advertising impact on target audience.

D) It is a way to measure increase in product sales.

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

109) Gathering the bounce rate of a web advertisement can be useful because it

A) suggests visitors did not have a reason to explore the website.

B) predicts what content was effective.

C) tracks the history of each visitor to the site.

D) measures spikes in sales of certain products.

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

110) What decisions can be made by examining clickthrough rates?

A) Which advertising offers can change since information is reported daily

B) Which promotions can be created based on viewing habits of visitors

C) Which products will be repositioned to respond to changing trends being tracked

D) Which loyal customers can receive special discounts and promotions

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

111) A metric that can be used to determine if a poorly designed website fails to convert a visitor is called

A) abandonment rate.

B) failure rate.

C) dismissal rate.

D) retrieval rate.

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

112) Which of the following is critical to analyze when measuring marketing effectiveness?

A) Timely data

B) Reliable surveys

C) The demographic makeup of the target audience

D) Persuasive messaging

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

113) What is the primary advantage found in digital media metrics versus those for traditional media?

A) Nearly real-time data

B) Big data contains a lot more relevant information

C) It is easier to connect meeting objectives to digital advertising versus traditional advertising

D) All of these

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

114) Why are page views of greater interest to marketing managers than hits?

A) Not all hits are from current or potential customers.

B) Many hits come from automated searches.

C) Page views represent people who go to a website and view at least some of the information.

D) All of these

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

115) Why are unique visitors more important to a marketing manager than total visitors?

A) Because the number of unique visitors is always larger.

B) Because some people visit the site multiple times.

C) Because visitors who visit the site multiple times are less likely to purchase.

D) Because unique visitors are all driven to the site by promotional activities.

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

116) Do conversion rates relate strictly to sales?

A) Yes. It means that you've converted a visitor to a buyer.

B) No. A conversion can be to any target behavior.

C) Yes. There can be, however, interim steps where the visitor becomes a prospect.

D) No. Conversion just means you've moved from the landing page to another page in the website.

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

117) Which of the following statements most accurately describes participation-related metrics?

A) Digital media metrics have the advantage of using nearly real-time data.

B) Facebook Insights provides data and information about all website traffic, including social media sites.

C) Hit and page-view metrics require complicated calculations.

D) Marketers who pay careful attention to abandonment rates often win back visitors who earlier abandoned the site.

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

118) Company S uses banner advertising on a variety of websites to promote Product H. The websites attract a total of 100,000 unique visitors who see the ads and 100 click on the ads to navigate to the Company S website. Only 50 visitors remained on the first page for more than a few seconds. What is the clickthrough rate?

A) 0.001%

B) 0.1%

C) 0.5%

D) 50%

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

119) What is the best similarity between bounce rates and abandonment rates?

A) High numbers signal lost business.

B) High numbers signal investment opportunities.

C) They require no calculations.

D) They view customers as merely visitors.

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

120) Via banner advertising, Company R's website receives 150 visitors. Only 75 visitors remained on the first page for more than a few seconds. What is the bounce rate?

A) 0.05%

B) 0.5%

C) 5%

D) 50%

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

121) Company Q's website had 100 visitors. Of those, 40 people attempted to place an order, but were thwarted by an error message. They navigated away and left the item(s) in their virtual shopping carts. What is the abandonment rate for Company Q's site?

A) 4%

B) 25%

C) 40%

D) 60%

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

122) An ecommerce website is visited by 100,000 people. Of those, 15,000 people purchased at least one item. What is the conversion rate?

A) 1.5%

B) 6.7%

C) 15%

D) 67%

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

123) According to Google Analytics, Company ABC's website has had 800,000 visitors. Of those visitors, 5,000 have made purchases. An additional 2,000 visitors put merchandise in a cart, but did not follow through. In the hopes of increasing website traffic and sales, Company ABC placed banner advertising on a variety of websites to promote its new product line. The websites attracted a total of 200,000 unique visitors who saw the ads and 200 clicked on the ads to navigate to the Company ABC website. Only 50 visitors remained on the first page for more than a few seconds. No new visitors made purchases. As the marketing manager for ABC, what is the best course of action based on metrics?

A) You determine that ABC has a disappointing conversion rate of 0.5%, which means few visitors make purchases. The new banner advertising seems effective with a clickthrough rate of 0.1%, but the bounce rate is high at 75%. These metrics lead you to believe that visitors do not like what they see when they navigate to your website and may not be able to find the information they want. You decide to work with the design department to create a new interface.

B) You determine that the new banner advertising seems effective with a clickthrough rate of 0.1% and a low bounce rate of 25%. You decide to increase ABC's banner advertising efforts to bring in more visitors to the website and improve your lowly conversion rate of 0.5%.

C) You determine that ABC has a reasonable conversion rate of 0.5%. You are most concerned with the abandonment rate of 0.2%, which means 2,000 people thought about purchasing your products, but did not. You decide to focus efforts on communicating with these lost customers before making any further financial commitments to additional banner advertising.

D) You determine that the new banner advertising seems effective with a clickthrough rate of 0.1% and a low bounce rate of 25%. But ABC has a disappointing conversion rate of 0.5%, which means few visitors make purchases. You decide that customers are unhappy with your product offerings and/or prices and endeavor to make changes that will appeal to your target audience.

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

124) Why is it important that we consider spending toward marketing objectives as investments rather than expenses?

Learning Objective: 13.1 Outline the process for measuring marketing effectiveness.

Section Reference: The Process of Measuring Marketing Effectiveness

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

125) Why is it difficult to use metrics like CPM, frequency, and quality of exposure in comparing one medium to another?

Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics.

Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Media Communications

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

126) Why is it important for marketing managers to track abandonment? What actions might it lead to?

Learning Objective: 13.7 Explain and apply participation metrics for digital marketing.

Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

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