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As part of the needs assessment, the consultative salesperson must learn everything
there is to know about:
a. the product he or she is selling.
b. the customers and their needs.
c. the competition.
d. the industry in which he or she is selling.
e. all of the choices.
Answer:
While it is important to understand potential business customers' buying processes, this
is not a helpful segmentation basis.
a. True
b. False
Answer:
When cosmetics company Este Lauder gives customers a bag of smallsized cosmetics
with the purchase of a full-priced item, this is an example of a premium offer.
a. True
b. False
Answer:
Microwave ovens, staplers, frozen yogurt, and purses are examples of:
a. PLC line items.
b. line-extendable categories.
c. brand classes.
d. brand groupings.
e. product categories.
Answer:
An appeal to vanity and egotism is the reason celebrity spokespeople are used so often
in advertising.
a. True
b. False
Answer:
A regional airport manager conducted research to get a better understanding for the
types of concessionaires to include in the planned terminal remodeling. She conducted
two sets of group interviews, one with ten leisure flyers and another with ten business
flyers. In each group, participants discussed what types of food, retail, and other
services they wanted in the new terminal. These discussions are examples of:
a. extended interviews.
b. focus groups.
c. observation.
d. ethnographic research.
e. secondary research.
Answer:
A ____ error occurs because the selected sample is an imperfect representation of the
overall population.
a. frame
b. field
c. measurement
d. random
e. representational
Answer:
____ advertising is an arrangement in which the manufacturer and the retailer split the
costs of advertising the manufacturer's brand.
a. Advocacy
b. Comparative
c. Institutional
d. One-to-one
e. Cooperative
Answer:
Three aspects of packaging that are especially important in international marketing are
labeling, aesthetics, and:
a. price.
b. length of distribution channel.
c. counterfeiting potential.
d. warranties.
e. climate considerations.
Answer:
To be successful in the global marketplace, service firms must first:
a. develop pricing incentives to encourage customers to begin doing business with
them.
b. design marketing mix elements that account for each country's unique environment.
c. hire employees who are familiar with the local culture.
d. determine the nature of their core product.
e. build strong social bonds with their foreign customers.
Answer:
All sales have an implied warranty under the Uniform Commercial Code.
a. True
b. False
Answer:
Horizontal channel conflict occurs most often when manufacturers practice:
a. dual or multiple distribution
b. trade loading
c. promotional pricing
d. direct distribution
e. channel distribution
Answer:
Managing inventory from the supplier to the manufacturer is called distribution
resource planning (DRP).
a. True
b. False
Answer:
The price skimming strategy is sometimes called a "marketplus" approach to pricing
because it denotes a high price relative to the prices of competing products. This
strategy works best when:
a. competition is abundant.
b. revenues are equal to expenses.
c. supply is greater than demand.
d. production capacity is large and flexible.
e. The product is perceived as having unique advantages.
Answer:
The European Union Commission and the courts have come under widespread criticism
for "rubberstamping" or approving most business deals involving U.S. multinationals.
a. True
b. False
Answer:
Branding has three main purposes: product identification, repeat sales, and new-product
sales.
a. True
b. False
Answer:
Which of the following statements about online sales promotions is true?
a. Internet sales promotions are more effective and cost-efficient at generating
responses than their off-line counterparts.
b. One of the few types of sales promotion that cannot be used online is sampling.
c. Online coupons have lower redemption rates than off-line coupons.
d. Loyalty marketing programs are ineffective when used at Web sites to encourage
traffic.
e. There is no way for a marketer to build long-term, mutually beneficial relationships
with customers online.
Answer:
Usborne Books consultants sell books directly to customers via presentations in
customers' homes, at book fairs and community events, and at craft shows. Usborne
consultants are engaged in:
a. telemarketing.
b. interpersonal communication.
c. publicity.
d. mass communication.
e. crowd selling.
Answer:
DeFeet International
DeFeet International started as a cyclist sock company. The founder, Shane Cooper, said
that the existing socks for cyclists were just not of great quality, so he made socks for
his cycling team by knitting them inside out. The socks were of special materials aimed
at giving the cyclist the most comfortable fit. These socks were not the traditional white
socks but were bright, bold, and flashy colored socks with cool graphics. These
high-tech socks were priced around $10 a pair. Their Web site says "DeFeet Is Made for
Driven Soles." Soon, cycling elites like Lance Armstrong and Greg LeMond were
sporting the DeFeet brand. The company branched into running, hiking, and snow gear.
Products include socks, armskins, calfskins, boxer briefs, gloves, and shirts for the
serious athlete. DeFeet has a custom department where socks, armskins, and gloves can
be personalized with any motif, including sponsor types of logos like Michelin, Pabst
Blue Ribbon, or BP. Even kids can enjoy DeFeet's highquality socks. DeFeet's products
can be found in retailers across the world""in more than 20 countries like Israel,
Australia, Belgium, and the United States. More than two dozen online retailers also
carry DeFeet products.
Refer to DeFeet International. What is DeFeet's most likely target market strategy?
a. Appeal to the entire market
b. Concentrate on one segment of the market
c. Appeal to multiple segments
d. Appeal to athletes
e. Appeal to the world
Answer:
DigitalCookware
Digital Cookware has developed a new kind of skillet that should make cooking easier
for many non-chefs. The skillet has a display on its handle that beeps to alert the cook
when the pan's target temperature is reached. The skillet, with the aid of an
accompanying cookbook, will take much of the guesswork out of cooking. Digital
Cookware is a small company, and it has invested considerable money in developing
this new technology, which it eventually hopes to use in an entire line of pots and pans.
It has run some small ads for the new skillet in cooking magazines and has been
featured on some morning talk shows. It needs a quick infusion of cash to maintain its
current operational level and to develop the rest of the cookware line. Digital Cookware
is considering some kind of sales promotion.
Refer to Digital Cookware. If Digital Cookware offered the sales associates at a chain
of cooking stores a bonus for each digital skillet they sold, it would be an example of:
a. push money.
b. a trade allowance.
c. a trade rebate.
d. pull money.
e. a functional discount.
Answer:
Business marketers focus on all of the following market segments EXCEPT:
a. institutions.
b. producers.
c. households.
d. resellers.
e. government.
Answer:
Vick's, Nestl, Pepsi, and Toyota products are examples of brands because of who owns
them.
a. manufacturers'
b. private
c. family
d. individual
e. master
Answer:
Stormbreaker, a new spy movie, details the story of Alex Rider who, after the death of
his uncle, is recruited as an M16 spy. Armed with a special set of gadgets, Rider's
mission is to save millions of lives. In James Bond fashion, the Cross pen serves as one
of the key gadgets in the film. The maker of the Cross pen paid to have its pen featured
in this movie. This is an example of:
a. advertising.
b. a sales promotion.
c. paid-for public relations.
d. product placement.
e. lobbying.
Answer:
KitKat
The popular Kit Kat chocolate bar was created by Rowntree's, a confectionary company
in the United Kingdom, in 1935. By the 1940s, Rowntree's was exporting Kit Kats to
Australia, New Zealand, South Africa, and Canada. The brand further expanded in the
1970s when Rowntree created a new distribution factory in Germany to meet European
demand, and established agreements to distribute the brand in the USA and Japan,
through the Hershey and Fujiya companies respectively. In June 1988, Nestl acquired
Kit Kat through the purchase of Rowntree's, giving Nestl global control over the
brandexcept in North America, where it is made under license by the Hershey
Company. Variants in the traditional chocolate bar began to appear in the mid-1990s
and have continued to develop ever since. Kit Kat Japan, in particular, has many unique
flavors such as mango-flavored, cucumber, and wasabi Kit Kats. Today, Nestl produces
Kit Kat bars in 21 countries and has expanded its marketplace in Japan, Russia, Turkey,
and South America, in addition to markets throughout Europe.
Refer to Kit Kat. Which of the following statements about the relationship between
Nestl and The Hershey
Company is probably TRUE?
a. Hershey is not allowed to market the bars as "Kit Kats" in North America.
b. Hershey does not need to consult Nestl if it wants to make a unique Kit Kat flavor.
c. Hershey and Nestl are in a joint venture together.
d. Hershey pays Nestl a fee for the privilege of producing Kit Kat bars.
e. Nestl has not given Hershey any proprietary knowledge about Kit Kat bars.
Answer:
In the early 1920s, Ford promised its customers any color vehicle they wanted as long
as it was black. Ford's management assumed anyone buying a car would accept the
color black, so it made products affordable by offering only one variety in large
quantities. Ford is an example of a market-oriented firm.
a. True
b. False
Answer:
One of the reasons consumers can purchase cheap flights or hotel rooms on Web sites
such as Expedia.com and Hotels.com is due to the fact that airlines cannot sell the seat
on a specific flight after the plane takes off and hotels cannot recoup the revenue from
that room for that night once the night passes. Which unique characteristic of services
does this illustrate?
a. Intangibility
b. Inseparability
c. Perishability
d. Simultaneous production and consumption
e. Variability
Answer:
H&R Block launched a $100 million marketing campaign to parlay the company's
intimate knowledge of 20 million customers' finances into other services like mortgages
and investment advice. Block has great brand recognition, but consumers only care
about it four months out of the year. H&R Block is attempting to ____ itself to
make people think of it as a company offering services year-round.
a. reposition
b. reengineer
c. demarket
d. undifferentiate
e. niche
Answer:
Girls between the ages of 8 and 12 are one of the growing markets for high-end shoe
manufacturers. These girls want styles that are both youthful and grown-up looking.
They are:
a. members of Generation X.
b. a cohort generation.
c. tweens.
d. baby boomers.
e. the baby bridging generation.
Answer:
ClaxtonFruitcakes
One common Christmas tradition in many households is the Claxton fruitcake. The
fruitcake bakery in Claxton, Georgia, makes about six million pounds of fruitcake
annually and has $12 million in sales. One fruitcake batch weighs 375 pounds. About
70 percent of that weight is fruits and nuts. A single batch is divided into 34 loaf pans
that hold 11 pounds each. Loaves are cooked for 100 minutes at 375 degrees. The
bakery can cook 6,000 pounds at a time. During the baking season (August to
December), the bakery uses a tractor-trailer load of raisins each day. The suggested
retail price of a one-pound Claxton fruitcake is $3.69.
Refer to Claxton Fruitcakes. In terms of business-to-business products, the flour used in
fruitcakes is an example of:
a. OEM supplies.
b. installations.
c. MRO supplies.
d. processed materials.
e. accessory supplies.
Answer:
Sometimes managers price their products too low, resulting in a loss of company
profits. One reason this happens is that:
a. managers attempt to buy market share through aggressive pricing, but the cuts are
quickly met by competitors, which wipe out any gain in market share.
b. consumers tend to equate lower prices with low-quality goods, and they are never
able to regain that lost market share.
c. price-skimming strategies only work in the short-term, and always eventually result
in lower profits.
d. most managers simply lack good business sense, especially in regard to finances.
e. all of the above are reasons.
Answer:
A cost that changes with the level of output is called a(n) _____ cost.
a. liquidity
b. variable
c. fixed
d. asset
e. elastic
Answer:
Most nonprofit organizations perform all of the following markteing activities
EXCEPT:
a. identify the customers they wish to serve or attract
b. develop, manage, and eliminate programs and services
c. decide on prices to charge
d. schedule events or programs
e. Most nonprofit organizations perform all of the above.
Answer:
____ involves delegating authority to solve customers' problems.
a. Consumer learning
b. Customerization
c. Empowerment
d. Autonomy
e. Interaction
Answer:
Nonprofit managers do not need to worry about developing marketing strategies.
a. True
b. False
Answer:
B-to-B marketers have found that they can use social media tools like Facebook to
boost brand awareness.
a. True
b. False
Answer:
