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When the Segway Human Transporter was introduced in 2002, many people expected
the product to be a phenomenal success. While the Segway is still on the market, it has
never been the success so many expected. A recent WallStreetJournalarticle suggested
that the Segway, while brilliant technologically, seemed impractical to most people
since it could not be used to replace their current method of transportation. In other
words, the Segway had problems with:
a. compatibility.
b. relative advantage.
c. observability.
d. trialability.
e. longevity.
Answer:
New product idea generation and testing are related to which of the following
processes?
a. Demand management
b. Order fulfillment
c. Customer service management
d. Product development and commercialization
e. Customer relationship management
Answer:
On average, African Americans are nearly eight years older than all other American
consumers.
a. True
b. False
Answer:
AdvancedBionics
Advanced Bionics is a global leader in the development of implantable, high-tech
neurostimulation devices used to treat deafness and chronic pain. Just two-and-a- half
years after introducing its new stimulators, the firm is doing
$200 million in domestic sales. How has Advanced Bionics been so successful? Its
success can be attributed to its outstanding products and to three aspects of its sales
approach. First, Advanced Bionics hired the right talent for its sales force. Companies
tend to use experienced sales repsoften hired away from competing companiesto sell
new medical devices. This can be very expensive since experienced reps generally
expect as much as $200,000 in annual income. So when Advanced Bionics brought its
medical device to market, it hired people with no experience selling medical devices
and turned them into sales reps. Hiring inexperienced salespeople created some
problems, however, and the company experienced high turnover rates during its first
two years in operation. Second, Advanced Bionics provided salespeople with a rigorous
training program. Third, Advanced Bionics allowed salespeople to plan their own
activities while managers monitored their progress and pushed them to improve. In
short, the company has been able to succeed by selecting good people, training them
well, and managing them carefully.
Refer to Advanced Bionics. Advanced Bionics has cutting-edge technology and its
customers are very sophisticated. Salespeople need to persuade physicians,
neurosurgeons, and orthopedic doctors to use Advanced Bionics' products. Which of the
following statements is NOT an advantage that personal selling offers the company?
a. It can tailor the message to the customer needs.
b. It is good for explaining the merits of complex products.
c. It is inexpensive on a per contact basis.
d. It can be specifically directed to the different types of accounts.
e. It is effective in convincing a prospective client.
Answer:
In the future, electrical power may come from quantum nucleonics, a form of nuclear
power that produces no residual radiation. The ability to use this form of power will
require equipment adaptations, but it will solve the world's need for clean and efficient
power. When quantum nucleonics is developed, it will be an example of how
______ factors can affect an organization.
a. technological
b. competitive
c. economic
d. cultural
e. demographic
Answer:
Supercenters are more than just larger versions of traditional "markets." In addition to
foodstuffs, supercenters have pharmacies, dry cleaners, portrait studies, photo finishing,
hair salons, and restaurants.
a. True
b. False
Answer:
When IKEA, the Swedish home furnishings retailer, first entered the Japanese market, it
failed. It was more successful in its second try because it was aware of the need to adapt
its furnishings to fit the smaller Japanese homes. It success on its second foray into
Japan was based on its ability to give the Japanese consumer what he or she needed
without abandoning its product strategy. IKEA had to adopt a strategy.
a. product substitution
b. market differentiation
c. message adaptation
d. product invention
e. product adaptation
Answer:
Smart RFID employs radio-frequency electromagnetic fields to transfer and read
product data via an electronic tag.
a. True
b. False
Answer:
When Heinz introduced its ketchup globally, it first had to deal with the fact that
ketchup is not a household staple outside the United States. Heinz had to show foreign
users how ketchup can be used. Globally, Heinz has had to rely primarily on _____
advertising.
a. reminder
b. persuasive
c. informative
d. compulsive
e. influential
Answer:
The Victorinox Swiss Army Knife is found all over the world. It is manufactured and
marketed similarly to all consumers. Victorinox uses a(n):
a. ethnocentric strategy.
b. global marketing standardization approach.
c. synergistic approach to globalization.
d. cultural marketing strategy.
e. traditional approach to marketing.
Answer:
Global trade has climbed to about $200 billion a year.
a. True
b. False
Answer:
DAGMAR is an acronym for:
a. Defining and Achieving Goals Means Advertising Reach.
b. Developing Aggressive Markets.
c. Designing Advertising with Market Research.
d. Defining Advertising Goals for Measured Advertising Results.
e. Developing Aggressive Growth Markets and Revenues.
Answer:
Rebates involve a cash refund for the purchase of a product during a specific period.
a. True
b. False
Answer:
AmericanGirlDoll
The American Girl catalog began as a concept to introduce today's girls to those who
lived in the past. Each historically accurate doll is carefully crafted and dressed and has
books to describe her life. For example, Kristen is an 1854 pioneer girl who is growing
up in Minnesota. Her story begins with her long sea voyage from Sweden. The basic
doll, dressed in a calico dress and striped apron plus the hardcover story of how she got
to Minnesota, costs $90.00. Six more hardback books of Kristen's life are available for
$74.95. Kristen's nightgown costs $20.00, and a matching one for the doll owner is an
additional $38.00. Buy both together and the price is only $50.00. A hand- painted
wooden bed and trunk for Kristen are available for $213.00. Shipping costs vary with
the price of the merchandise ordered.
Refer to American Girl Doll. You can buy a doll at Walmart for $5.99. The high price of
the American Girl doll is used to promote a high-quality image. American Girl uses a
_____pricing strategy.
a. markup
b. demand-based
c. prestige
d. penetration
e. supply-derived
Answer:
For its new Jeep Compass, DaimlerChrysler came out with a new campaign targeting
young, hip consumers. To reach its target, DaimlerChrysler used music, talking
bobbleheads, and other nontraditional marketing tactics to capture consumers' interest.
These communications were directed at the ____, the persons who would decode the
message.
a. senders
b. receivers
c. encoders
d. channels
e. communicators
Answer:
The same environmental factors that operate in the domestic market also exist
internationally. These factors (culture, economic, political structure and actions,
demographic makeup, and natural resources) should be examined regardless of the
country.
a. True
b. False
Answer:
____ are eager to try new ideas and products. They typically have higher incomes, are
better educated, and are more cosmopolitan than other categories of adopters.
a. Early adopters
b. Innovators
c. Early majority
d. Late majority
e. Laggards
Answer:
All of the following statements about the use of the Internet in global marketing are true
EXCEPT:
a. Opening an e-commerce site on the Internet immediately puts a company in the
international marketplace.
b. The new Internet economy is being restrained by the old brick-and-mortar rules,
regulations, and habits.
c. Software has been developed to ease currency conversions by allowing customers to
pay for products in the currency of their choice.
d. FedEx is a global shipper that helps solve international e-commerce distribution.
e. Language barriers are limiting the potential of the Internet in international marketing.
Answer:
Post Properties is a company that manages apartments in various communities. It is
concerned with a glut of apartments in Atlanta, Orlando, and Dallas. Its market
researcher begins by examining the rental markets in the Southeast, the history of
apartment buildings, local economies, competitive rents, and ownership""all
information that was on hand and did not require any new research to locate. The
market researcher looked at:
a. a closed study.
b. secondary data.
c. primary data.
d. a statistical analysis.
e. priority databases.
Answer:
A product must be a discontinuous innovation to be considered a "new" product.
a. True
b. False
Answer:
Why is price lining a valuable tactic for marketing managers?
a. Price lining results in a greater inventory carrying charge.
b. It reduces confusion for its customers.
c. A company that uses price lining has more price markdowns and greater markup.
d. The price lining strategy allows the company to gain brand loyalty from its targeted
segments.
e. Price lining tends to confuse customers and requires them to listen closely to the
salesperson's pitch.
Answer:
NewCarPurchase
Zena has been promoted to VP of the management consulting firm where she works..
Her new status has led her to consider the need for a new car. Her trusty little
Volkswagen Beetle has over 100,000 miles on it and no longer seems appropriate.
Susanne, another VP, suggests that Zena consider a car produced in the United States
because the firm has a policy of supporting U.S. businesses. Zena began her quest for a
new car by visiting several car dealers and obtaining pamphlets on the models she is
considering. She also studied ConsumerReportsmagazine, CarandDriverratings, and
other consumer rating publications to see what the experts think. After evaluating all
options, Zena has decided to purchase a new Chrysler. She believes that the car is a
good fit with her new image and position in her company. Since her purchase, she has
seen more advertisements touting the car's features than she ever noticed before. She
also has noticed many models of her car on the road. Zena thinks the fact that so many
others are driving the same model car as hers is proof that she made a good decision.
Refer to New Car Purchase. Zena's visits to the dealers and looking at ratings in
magazines best represent which step of the consumer decision-making process?
a. Need recognition
b. Information search
c. Evaluation of alternatives
d. Stimulus
e. Postpurchase behavior
Answer:
Corporate social responsibility is defined as the:
a. belief that the legal system defines ethical behavior
b. development of inclusive codes of ethics
c. rules by which social rewards are attained
d. business's concern for society's welfare
e. coordination of social programs for publicity purposes
Answer:
MethodistChurch
In 2001, the United Methodist Church, the second-largest Protestant denomination in
the United States, launched a four-year, $20 million national ad campaign. The
theologically gentle but culturally edgy ads are aimed at Americans who are
unchurched""people who know the name "Methodist" but don"t know anything else
about it. The "Igniting Ministries" ads have appeared on CBS and cable television. The
purpose of the ads is to draw more people through Methodist Church doors in a time
when mainline Protestant denominations are struggling.
Refer to Methodist Church. In terms of the communication process, the unchurched
who see the ads while watching television are expected to be:
a. channels and encoders.
b. senders and receivers.
c. receivers and decoders.
d. channels and decoders.
e. receivers and channels.
Answer:
Which business process is based on the activities involved in customer data collection,
forecasting of future demand, synchronization of supply and demand by comparing
production capacity to forecasts, and the development of activities to 'smooth out"
demand?
a. Manufacturing flow management
b. Customer service management
c. Product development and commercialization
d. Order fulfillment
e. Demand management
Answer:
When the salesperson from Affiliated Food, Inc., a grocery distributor, calls on a
grocery store, she is authorized to offer a 15 percent discount from the list price in
recognition of activities (such as unpacking items and stocking shelves) that retailers
perform for the distributor. This 15 percent discount is a:
a. quantity discount.
b. promotional allowance.
c. functional discount.
d. seasonal discount.
e. channel allowance.
Answer:
Which of the following statements about bar codes is true?
a. Bar codes are also called universal pricing codes (UPCs).
b. Bar codes were first used in 2000.
c. Bar codes can be read by optical scanners.
d. Bar codes cannot be used as a marketing research tool.
e. All of these statements about bar codes are true.
Answer:
In market segmentation, individual psychographic variables can be combined with other
variables to provide more detailed descriptions of market segments.
a. True
b. False
Answer:
EtruscanRailingCompany
Etruscan Railing Company makes railing that is used in sports arenas, nursing home
corridors, queue houses at amusement parks, and many other places that are not as
obvious. Its railing is molded into bicycle racks. You may also see city governments
using the railing to make walkways over ravines and creek banks safer for pedestrian
traffic. Hospitals also use the railing in their physical therapy departments, to keep the
lines straight in the hospital cafeteria, and to prevent patients from falling out of
hospital beds.
Refer to Etruscan Railing Company. When Etruscan sells railings to refurbish a private
university's football stadium, it is selling to a(n):
a. intermediary.
b. institution.
c. reseller.
d. producer.
e. consumer.
Answer:
Customer relationship management is accomplished by all of the following EXCEPT:
a. offering the lowest prices of all major competitors.
b. organizing the company around customer segments.
c. establishing and tracking customer interactions with the company.
d. fostering customer-satisfying behaviors.
e. linking all processes of the company from its customers through its suppliers.
Answer:
