BUSMKT 496 Midterm 1 | Course Paper

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Using an undifferentiated marketing strategy, a firm decides to target several market

segments and designs separate offers for each.

Tariffs are limits on the amount of foreign imports that a country will accept in certain

product categories.

A marketing Web site interacts with consumers to move them closer to a direct purchase

or other marketing outcome.

Supermarkets are located near residential areas and are open long hours, seven days a

week; they carry a limited line of high-turnover goods.

In addition to its customary services, On the Spot, a house mover, also sells the boxes

and padding that are used when moving household furniture. This is an example of

customer-segmented pricing.

As a part of intensive distribution, dealers are expected to refrain from selling the

products of the producers’ competitors.

Jim is planning on buying an expensive HDTV and he realizes that there are few

differences between brands of HDTV. Therefore, Jim is displaying complex buying

behavior.

Shopper marketing involves focusing the entire marketing process-from product and

brand development to logistics, promotion, and merchandising-toward turning shoppers

into buyers at the point of sale.

Consumers can never buy functional versions of highly promoted branded products at

lower prices.

Nancy Willis works for the LeBray Beverage Company. She helps define product

specifications and also provides information for evaluating alternatives. Nancy plays

the role of a gatekeeper.

Thinking Cap Corp. prices its various cap designs at different price levels, ranging from

$2.05 to $5.95. This is an example of optional product pricing.

If demand is elastic rather than inelastic, sellers will consider lowering their prices.

Entrepreneurial marketing exclusively involves developing formal marketing strategies

and adhering to them closely.

Line extension refers to extending an existing brand name to new product categories.

Herb Marks built his enterprise on the faithful patronage of four specialty shops and a

large contract from Elmore Distributors. But after two years, the maker of novelty pens

and pencils had to rethink his strategy when his contract with Elmore ended.

Herb built a company reputation on the manufacturing and distribution of a variety of

wooden writing utensils with customized engravings. Specialty shops loved to display

the products in their fancy, lighted showcases, but such specialty shops alone were not

profitable. Herb Marks established a brand name, known merely as Marks, and decided

to expand on it.

Herb extended his writing utensil lines to include quills, felt-tip pens, and

multiple-cartridge pens that write in different colors. He even added a line of various

grades of personalized stationery and business cards. Perhaps Herb’s biggest added

touch, however, was the addition of two salespeople who would work to explain the

diverse array of products offered by Marks, as well as nurture existing accounts.

“We make an excellent product,” Herb Marks stated, “and we honor a good guarantee

on everything we sell. But let’s face it-we face hundreds of competitors! We need Marks

representatives out there to help prospects understand what they should demand in

something as simple as a writing tool.”

The Marks brand was fast-becoming synonymous with top-notch customer service. Part

of the purchase package brought personal visits from the Marks representative, before

the purchase and long after.

Developing a product or service involves defining the benefits that it will offer. These

benefits are communicated and delivered by ________.

A) product labels

B) product attributes

C) support services

D) product packaging

E) branding

Which of the following is most likely a risk associated with experience-curve pricing?

A) High-volume production facilities are unable to meet demand.

B) New technology often leads to productivity problems.

C) Demand for the product fluctuates unpredictably.

D) Consumers tend to prefer new brands over established ones.

E) Aggressive pricing often gives a product a cheap image.

India needs more imports of raw materials such as textiles, steel, and heavy machinery

and fewer imports of finished textiles, paper products, and automobiles. In the context

of industrial structures, India is most likely a(n) ________ economy.

A) subsistence

B) totalitarian

C) raw material exporting

D) agrarian

E) industrializing

When marketers set low expectations for a market offering, they run the risk of

________.

A) disappointing loyal customers

B) having to use an outside-in rather than an inside-out perspective

C) failing to attract enough customers

D) failing to understand their customers’ needs

E) incorrectly identifying a target market

Consumers who show their allegiance to brands, stores, or companies help marketers to

segment consumers by their ________.

A) user status

B) degree of loyalty

C) income

D) geographic location

E) benefit-seeking attitudes

Nike inadvertently offended Chinese officials when it ran an ad featuring LeBron James

crushing a number of revered Chinese figures in a kung fu€themed television ad. As a

result, Nike has to release a formal apology. This is an example of the impact of

________ on marketing strategy.

A) culture

B) political stability

C) level of industrialization

D) income distribution

E) monetary regulations

Casey Brickly opened The Landing, a convenience store on the north shore of Witmer

Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the

other, The Landing was an immediate hit with weekend lake visitors and local residents

alike. In the summer, boaters parked at the piers and bought all their fishing needs, such

as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter

months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot

coffee or hot chocolate.

As time passed, the business changed and grew tremendously. What was formerly a

weekend tourist area gradually became a full-fledged residential area. Many of the

houses, which were built as cottages in the 1950s and 1960s, were remodeled into

residential homes. By the end of the 1970s, the days of small motor boats and 10

mile-per-hour speed limits were gone; skiing and fast speed boats became the rage.

Through it all, The Landing continued to attract flocks of patrons.

In the 1980s, however, Casey started to realize that the grocery area in The Landing

could not compete with larger local retailers. He eventually enlarged the sandwich

counter, transforming the bait shop and grocery into a restaurant with a full menu

typical of any diner.

“Getting rid of the bait shop was hard to do,” Casey admitted. “I still had a summer

crowd that relied on us for their fishing needs, but we couldn’t survive a whole year on

four months of profit.”

In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became

upscale. “I could see that people were spending more on their speed boats than what

they had originally paid for their cottages!” Casey exclaimed. Many of the cottages

were inherited by children and grandchildren of the original owners. Once again, the

scene started to change as many of the lake houses were used only as weekend lake

homes. Unlike the previous generation, a vast number of the current owners could

afford to live closer to their jobs while maintaining lake homes. “At this point, business

wasn’t growing,” Casey said.

As local competition continued to increase, Casey converted the diner of The Landing

into a bar with a lounge area. “The change might have been too drastic,” Casey said,

“but it was the only way we could maintain a strong, year-round business in spite of the

population shifts and competitive forces.”

Which of the following is the macroenvironmental force that has had the greatest effect

on The Landing?

A) the demographic environment

B) the technological environment

C) marketing intermediaries

D) the political environment

E) citizen-action publics

A company selling child care products ran a television ad depicting women as being

primarily responsible for child care. Many women viewers considered this regressive

alleging that the ad failed to recognize the much more diversified role of women in

today’s world. This is an example of ________.

A) cause marketing

B) stereotyping

C) niche marketing

D) scapegoating

E) positioning

Maslow’s theory is that ________ can be arranged in a hierarchy.

A) marketing stimuli

B) personal beliefs

C) perceptions

D) human needs

E) decisions

A company getting ready to launch a new product must make several decisions. The

company must first decide on ________.

A) whether to launch the product in a single location

B) whether to launch the product in a region

C) whether to launch the product into full national distribution

D) when to introduce the product

E) when to develop a planned market rollout

In a simple random sample, ________.

A) every member of the population has a known and equal chance of selection

B) the population is divided into mutually exclusive groups (such as blocks), and the

researcher draws a sample of the groups to interview

C) the researcher selects the easiest population members from which to obtain

information

D) the population is divided into mutually exclusive groups and random samples are

drawn from each group

E) the researcher finds and interviews a prescribed number of people in each of several