100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
BUAD 307 Final Exam Questions And Answers With Latest Solutions $16.99   Add to cart

Exam (elaborations)

BUAD 307 Final Exam Questions And Answers With Latest Solutions

 2 views  0 purchase
  • Course
  • BUAD 307
  • Institution
  • BUAD 307

BUAD 307 Final Exam Questions And Answers With Latest Solutions The model of advertising encoding and decoding discussed in class: a. Includes a vulnerability to the effects of "noise." b. Is used to determine how to most effectively implement sales promotion. c. Is used to examine a brand's ...

[Show more]

Preview 4 out of 44  pages

  • October 28, 2024
  • 44
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • buad 307 final exam
  • BUAD 307
  • BUAD 307
avatar-seller
Labtech
BUAD 307 Final Exam Questions And Answers With
Latest Solutions
The model of advertising encoding and decoding discussed in class:


a. Includes a vulnerability to the effects of "noise."
b. Is used to determine how to most effectively implement sales promotion.
c. Is used to examine a brand's location on the S-shaped curve of advertising effectiveness.
d. Suggests that the use of triggers will be ineffective during the maturity phase of the product life
cycle.
e. Predicts that the effectiveness of encoding will be proportional to the natural logarithm of the
speed of decoding. ANS A. Includes a vulnerability to the effects of "noise."


Electric—as opposed to hybrid or gasoline powered —cars have only been available for a limited
time, and so far, these are bought only by a small fraction of car buyers. Based on this information, it
appears that:


a. Electric cars are undergoing revitalization.
b. Competition is in this market is likely to be intense.
c. Electric cars are either in the introduction or growth stages of the Product Life Cycle.
d. Electric cars represent an example of a continuous innovation.

e. Manufacturers should focus on demographic segmentation. ANS Electric cars are either in the
introduction or growth stages of the Product Life Cycle.


Within the context of branding:


a. Co-branding involves two or more brands.
b. Brand extensions are more likely to be successful if the extension is congruent with the original
brand.
c. Store brands tend to be lower priced than national brands.
d. Both (a) and (c).

,e. All of the above. ANS -Co-branding involves two or more brands.
- Brand extensions are more likely to be successful if the extension is congruent with the
original brand.
- Store brands tend to be lower priced than national brands.


The USC Bookstore usually offers customers 10% off on most merchandise during one day near the
end of the Fall semester, a time when people tend to be busy have difficulty finding the time for
shopping. This practice appears to involve:


a. Discontinuous innovation.
b. Implicit price discrimination.
c. A reverse implicit substitution effect based on non-linear demand curves.
d. Skimming.

e. An attempt to improve value-to-bulk ratios based on maximizing absolute margins. ANS
Implicit price discrimination.


Marketing professionals and economists tend to agree that:


a. It is useful to assume that consumers make quick decisions based on very little information.
b. A very low price will almost certainly result in high sales volumes.
c. An equilibrium price is subject to change if the environment changes.
d. Both (a) and (b).

e. All of the above. ANS C. An equilibrium price is subject to change if the environment changes
- Reason why A is wrong: Economists assume that people have perfect information.
- Reason why b is wrong: Marketing professionals would say that this may signal low quality.


In order to cost effectively sell products online as opposed to going through traditional retailers and
wholesalers:


a. The value-to-bulk ratio should be low.

,b. Absolute margins are usually more critical than percentage margins.
c. The seller should receive the majority of its revenue from micro-payments.
d. All of the above.

e. None of the above. ANS B. Absolute margins are usually more critical than percentage
margins.
- Reason why A is wrong: It should be high.
- Reason why C is wrong: that would mean that a lot of the revenue would go to credit card
processing.


Based on the textbook discussion, if demand for ice cream is highly elastic:


a. The skimming approach to pricing will likely maximize profit.
b. A price decrease will likely increase the quantity sold.
c. Advertising will likely have a very large impact on the quantity sold.
d. Segmentation should be based on benefit desired.

e. The promotion signal should be used as a means of increasing intra-brand competition. ANS
B. A price decrease will likely increase the quantity sold
- Reason why A is wrong: Since there are many competitors, this would not work.
- Reason why C is wrong: Advertising is a weak force that typically has limited impact.
- Reason why D is wrong: This does not logically follow.
- Reason why E is wrong: This is a nonsense answer!


The S-shaped curve of advertising effectiveness suggests that:


a. The increase in sales that results from advertising tends to be proportional to the square of the
amount of money spent.
b. A certain threshold of advertising spending must be reached before the advertising will have any
appreciable impact.
c. Advertising tends to be mostly ineffective if substitutes for a brand or product category exist.
d. Saturation is likely to occur shortly after the "I" stage of the AIDA.

, e. Both (a) and (d). ANS A certain threshold of advertising spending must be reached before the
advertising will have any appreciable impact


According to the author of Contagious:


a. A number of men began to grow mustaches as a way to demonstrate their individuality in order to
counter the strong pressure they felt to conform to the fashions of their peers.
b. The Hotmail e-mail service grew rapidly, in part because outgoing messages showed others how
they, too, could obtain a Hotmail account.
c. The Panda Cheese ads were rather ineffective in India due to strong anti-Chinese sentiment among
Indian consumers.
d. The story of the Lands' End coat suggested that so long as a story is sufficiently entertaining, a
reputation for poor customer service is unlikely to significantly reduce sales.
e. If thirty percent of U.S. college students switched their majors to swine science, the total Gross
Domestic Product (GDP) of the United States would likely increase by more than three percent.
ANS The Hotmail e-mail service grew rapidly, in part because outgoing messages showed others
how they, too, could obtain a Hotmail account


Doughnuts for Peanuts—located across the street from the Los Angeles Police Department
Headquarters—sells low priced doughnuts. Based on material covered in the text, it appears likely
that the management believes that for this product:


a. A major service gap exists.
b. Price elasticity is high.
c. Additional alpha and beta testing are needed before this product can be sold. d. Both (a) and (c).

e. All of the above. ANS Price elasticity is high.


Under current U.S. law, which of the following is/are highly likely to be illegal regardless of
additional facts?


A. Getting together with competitors and agreeing on a minimum price to charge.
b. Manufacturers telling retailers that they must charge at least a certain price.
c. Offering quantity discounts.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Labtech. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $16.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

84866 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$16.99
  • (0)
  Add to cart