fall 08 m2 - MAR 3023 MIDTERM 2 FALL 2008 1 Sarah just...

MAR 3023 MIDTERM 2 FALL 2008
1. Sarah just bought a new Louis Bitton jacket and loves to wear it everywhere she goes. She knows that the
Louis Bitton brand is generally viewed as a luxury brand that produces very well-made garments.
Unbeknownst to her, there has recently been a recall on Louis Bitton jackets due to their material unraveling.
Although mishaps such as this have occurred with the Louis Bitton jackets, which component of brand equity
relates to why most consumers still believe that Louis Bitton is a high class brand?
A. association
B. loyalty
C. attitude
D. awareness
E. perceived quality
2. Travis works in the headquarters of the Callaway Corporation. He wanted to compare how well their clubs
were selling in California relative to the national average. Travis calculated his Brand Development Index
(BDI) and Category Development Index (CDI) and found that they equaled 63 and 126, respectively. What
does this mean in terms of the corporation's marketing plans in California?
A. Callaway has a poor outlook in the California market.
B. Callaway should research the reasons for its poor performance in California.
C. Callaway has great potential for growth in California.
D. In California, Callaway clubs are equivalent to half the national average.
E. Callaway should invest more in California but monitor it closely.

3. Tami decides to check out a new clothing retailer in the Oaks Mall called "Fashion World". When she is at
the register to buy a few items, the sale associate informs Tami of Fashion World's loyalty program. After a
customer's first purchase, they receive a "fashion passport" that is stamped every time they make a purchase
over $20 in the future. Once a customer receives 10 stamps, they become a "fashion frequent flyer" and get the
benefit of receiving mailings about new store products on a weekly basis. After 20 stamps, the customer
becomes a "fashion VIP", where they receive invitations for sneak peaks at the store's new merchandise. Which
of the following describe Fashion World's loyalty program strategy?
I. interactive marketing
II. frequency marketing
III. hard benefits
IV. database marketing
V. soft benefits
A. II, V only
B. III, IV, V only
C. II, III only
D. I, III only
E. II, III, V only
4. The concept of internal marketing is based on the notion that a service organization must focus on its
__________ before successful programs can be directed at customers.