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Gray marketing channels assist brand name manufacturers in marketing their products
more efficiently.
a. True
b. False
Answer:
Marketers can control the external environment in which their organizations operate.
a. True
b. False
Answer:
SmellyFruit
At first glance, there is little to like about the durian. The durian is a fruit popular in
Thailand that is spiky outside and stinky on the inside. When confronted with the durian
for the first time, the WallStreet Journal recently reported that westerners often describe
its distinctive sulphurous smell with words like stinky sock sand manure. However, the
durian is so popular in Thailand that one variety of the durian fruit, called the Kan Yao,
has been selling for as high as $200. Even at that price, supply of the Kan Yao cannot
keep up with demand. There are approximately 30 varieties of the durian grown in
Thailand, with the most plentiful selling in the $15 range. The yellow flesh of the
durian, the part you eat, has very powerful smell but possesses a sweet, nutty taste that
Thais cannot seem to get enough of at any price.
Refer to Smelly Fruit. Suppose that you have decided to buy land in Thailand and
become a durian producer. You see that the customary price for a Kan Yao is $200, so
that is the price you decide to charge for your durian crop. This suggests you are using a
_____ approach to setting your price.
a. profit maximization
b. market share
c. return on investment (ROI)
d. sales maximization
e. status quo
Answer:
LeBlanc"sPecanCompany
Betty and Orville LeBlanc recently opened LeBlanc's Pecan Company retail store. In
addition to shelled and unshelled pecans, the Texas store sells pecan pies, tortes,
fruitcakes, fudge, pralines, chocolate pecan bark, homemade pecan ice cream toppings,
and jams and jellies. At this time, there are no other stores of this type in the Houston
area. The LeBlancs are considering developing an advertising campaign for their store,
focusing on its wide assortment of pecan-related products. Orville LeBlanc has drawn
up a list of communication tasks the advertising must accomplish. He used the
DAGMAR approach to draw up this list.
Refer to LeBlanc's Pecan Company. One of their advertisements featured Mrs. LeBlanc
showing how several of the products sold in the shop can be used when entertaining
guests. This is an example of which executional style for advertising?
a. Mood or image
b. Store demonstration
c. Scientific
d. Fantasy
e. Convenience
Answer:
As a result of the _____, a small increase or decrease in consumer demand can produce
a much larger change in demand for the facilities and equipment needed to manufacture
the consumer product.
a. demand fluctuation principle
b. joint demand principle or division effect
c. inelastic demand effect
d. multiplier effect
e. derived force effect
Answer:
The buying center:
a. will be composed of the same decision makers as long as the purchasing process
lasts.
b. is typically on the formal organizational chart under the VP for operations.
c. requires all purchasing participants to be employed by the purchasing department.
d. refers to all those organizational members who become involved in the purchasing
process.
e. regularly generates formal announcements of who is in the buying center.
Answer:
Amtrak
Amtrak is taking the gloves off in advertisements and belittling its major competition,
which is airline shuttles. Amtrak's new name for its Metroliner is The Smart Shuttle.
Gone are ads that were inwardly directed and sold the Metroliner on its leisurely pace.
In their place are ads showing rapid shots of the sleek train and business executives
conducting nononsense meetings "eyeballtoeyeball." The campaign, which includes
television, radio, print, billboards, and posters in commuter railroad cars, targets
business travelers, who, Amtrak says, incorrectly believes the train takes far longer than
the airplane to travel between two cities. One television spot opens with a shot of
airplanes stacked up in a tarmac traffic jam. Another shows a business traveler
lumbering into the airport during a snowstorm. The announcer says, "Schedule a
meeting. Take the shuttle. Then cross your fingers." The poor soul looks up at the
departure board and sees a row of "Canceled" signs. The announcer continues,
"Schedule a meeting. Take the Metroliner. Then cross your legs."
Refer to Amtrak. Amtrak's careful coordination of all of its promotional activities to
present a single, focused communication to its consumers is an example of:
a. coordinational promotion.
b. promotional mixing.
c. integrated marketing communications.
d. creative selling.
e. processed marketing.
Answer:
You are responsible for physical distribution of your company's service and should
focus on:
a. ensuring the intangibility of the service so that physical distribution becomes a less
important factor.
b. minimizing wait times, managing service capacity, improving service delivery, and
establishing channel-wide network coherence.
c. making sure production and consumption are simultaneous.
d. setting quality standards, choosing faster transportation modes, and using safety
stock.
e. customer-oriented order processing and inventory control.
Answer:
The three most important evaluative criteria for business-to-business purchases are
quality, price, and:
a. competitive offers.
b. service.
c. reliability.
d. assurance.
e. existing relationships.
Answer:
Informative promotion is used to keep the product and brand name in the public's mind.
a. True
b. False
Answer:
CallawayGolfCo.
Callaway Golf Co. has long been a leader in women's golf equipment, but it wanted to
expand its lead in this growing sector of the market. While Callaway's technical people
knew what could be done with design, they did not know exactly what women wanted
in their clubs. Callaway management decided what it needed to do was to bring the
technicians and women golfers together. Beginning about three years ago, Callaway
sent a team of researchers, designers, and golf pros out to visit with 40 women golfers
of various abilities in locations from California to Florida. In selecting the golfers to
study, Callaway decided to focus on women who were just beginning to play, as well as,
experienced, competitive golfers who wanted to own the latest equipment. Callaway
management felt that these two extreme groups of golfers had been overlooked by golf
club manufacturers. Further, Callaway felt that if enough could be learned about these
two groups, then the company would also learn enough to serve the rest of the women
golfer market. Basically, the research team observed the women playing golf and
listened to their comments and concerns. The information gathered by this research
team was built into every aspect of the design of a new golf club, including the feel of
the club, the length of the club shaft and size of the club head, and the weight of the
club. When prototypes of the new clubs were completed, they were sent to the women
golfers to get their feedback. That feedback was then used to refine the club design.
This process went on until the women said the new clubs greatly enhanced their game.
The entire process from original prototype to final product took a little less than one
year.
Refer to Callaway Golf Co. When Callaway researchers asked questions like "Now that
you have played with the new club, how likely would you say you would be to buy it?"
they asked golfers to respond on the following scale:
1 = would definitely not buy it 2 = would probably not buy it 3 = might or might not
buy it 4 = would probably buy it 5 = would definitely buy it. What type of question is
this?
a. Scaled response
b. Limited response
c. Dichotomous
d. Open-ended
e. Multiple answer
Answer:
A firm that wants to develop a deeper understanding of its customers may optimize
profitiablity, revenue, and customer satisfaction by focusing on highly defined and
precise customer groups. This is:
a. Customer optimization
b. Customer Relationship Management
c. Sales Orientation
d. Sales Maximization
e. Social orientation
Answer:
Most airline frequent flyer programs reward the most frequent flyers with business class
upgrades and flight lounge privileges. Airlines are using these rewards as a means of
implementing _____segmentation.
a. lifestyle
b. motive
c. usage-rate
d. demographic
e. personality
Answer:
Most service organizations market only one specific service
a. True
b. False
Answer:
The first step in setting the right price for a new product is to estimate demand, costs,
and profits.
a. True
b. False
Answer:
Profits typically reach their peak during the growth stage of the product life cycle.
a. True
b. False
Answer:
The marketing research problem:
a. is information oriented.
b. involves determining what resources will be used in research efforts.
c. is action driven.
d. does not rely on managerial experience.
e. is accurately described by none of these choices.
Answer:
Which of the following outlines a sequential four-step process for achieving
promotional goals?
a. The communication model
b. The hierarchy of impacts
c. The AIDA concept
d. Maslow's hierarchy of needs
e. Schramm's model
Answer:
Five hundred women were surveyed as to their feelings about female physicians. The
majority responded that they felt more relaxed with a female physician. The survey was
an example of a(n) ____ sample because it used local hospital patients as survey
participants.
a. random
b. representational
c. probability
d. convenience
e. framing
Answer:
Metallurgical Designs makes gold and silver charms for necklaces and bracelets. It
markets its charms to a few retailers in any one region and promotes them intensively to
those retailers. This is an example of intensive distribution.
a. True
b. False
Answer:
Jackie and Kevin like to eat at high-end restaurants where they can sit and enjoy their
meal without rushing. An ad showing food created "fast from a can" would be
appealing to Jackie and Kevin's reference group.
a. nonaspirational
b. direct reference
c. membership
d. integrated
e. aspirational
Answer:
An international company that needs to develop a way to compare its actual marketing
results with planned results must engage in:
a. external market research
b. implementation
c. comparative analyses
d. planning
e. control
Answer:
The supply chain team does all of the following EXCEPT:
a. communicating, coordinating, and cooperating extensively.
b. embracing all parties who participate in moving the product to market.
c. typically cutting across organizational boundaries.
d. providing financing for distributors.
e. orchestrating the movement of goods, services, and information from the source to
the consumer.
Answer:
All of the following are types of inputs used in both materials requirement planning and
distribution resource planning EXCEPT:
a. the source of funding.
b. lead times.
c. the mode of transportation to be used.
d. outstanding orders.
e. sales forecasts.
Answer:
BoutiqueHotels
In an industry where guests are tired of cookie-cutter hotels, some consumers are
looking for personalized service, which can be found in boutique hotels. Boutique
hotels cater to their guests' sense of their personal image as being discriminating, more
sophisticated, and more hip. Frequently, these guests don"t want to be where the crowds
are. This is a small but growing market niche. There are no generally recognized rules
for boutique hotels, but they tend to be small and service oriented, with high-style decor
and top-notch restaurants. Employees are called cast members. Amenities include
cordless phones, DVR players hooked up to HD televisions, Aveda brand bath and hair
products, and down comforters and pillows.
Refer to Boutique Hotels. Boutique hotels not only call their employees cast members,
but they compete for their talent, provide them with all the training needed, stress
teamwork, and give employees freedom to make decisions. In order to provide the level
of service guests require, boutique hotels need to engage in marketing.
a. interactive
b. relationship
c. internal
d. nonprofit
e. affiliation
Answer:
Maddie's Beverage Company has recently introduced Wateroos, eightounce servings of
water in juicestyle containers with straws, to encourage children to drink more water.
The goal of promotion developed for this new healthy alternative beverage for children
would be to ____ consumers.
a. inform
b. remind
c. prompt
d. influence
e. encourage
Answer:
Which of the following statements about advertising is true?
a. The total costs of advertising are typically low.
b. The signs on the outsides of buses and taxis are not a form of advertising.
c. The cost per contact in advertising is low.
d. Innovative media are not used in advertising.
e. Advertising is any form of communication in which the sponsor is identified.
Answer:
KraftFoods
Kraft Foods has established dedicated teams to focus on their business with many of
their largest customers. With "Team Kroger," Kraft has combined with Nabisco selling
organizations in order to bring more unique shopper insights to Kroger supermarkets.
This helps Kroger understand their shoppers and customize their programs to grow
even more. At the same time, Kraft has strengthened its relationship with Kroger by
gaining a better understanding of the supermarket's needs and how it can help support
Kroger's business objectives concurrently with its own.
Refer to Kraft Foods. Which type of selling does this Kraft perform with Kroger?
a. Traditional personal selling
b. Relationship or consultative selling
c. Customer selling
d. Interactive selling
e. Focused selling
Answer:
Circuses
As recently as 20 years ago, circuses came to town with tents, animals, clowns, and
other performers. An advance man arrived about two weeks before the circus actually
arrived, covered the community with posters, and gave out free tickets to
schoolchildren. If the advance man had done a good job, when the circus arrived and
opened its tent doors, 300 to 600 people would fill its seats. When the largest circus
organizations merged, the newly formed Ringling Bros. and Barnum & Bailey's
Greatest Show on Earth began performing in 4,000seat arenas.
Attendance, however, has stagnated in recent years. People have stopped going to the
circus because they miss the circus tent and the intimate atmosphere it created. The
newest thing in circuses is a return to the tent atmosphere with an emphasis on the types
of entertainment that were popular years ago. Antique circus wagons, calliope
music, and cotton candy are replacing the exotic animals and the prima donna
performers. To satisfy the needs of this new audience, the tent circus now sells lattes
and wine.
Refer to Circuses. One of the tent venues is called Barnum's Kaleidoscope, and it is in a
permanent location with the hopes that people who see the show will want to return and
see it again as well as bring their friends and relatives to the production. Which of the
following techniques would most likely advance this strategy of referrals and repeat
business?
a. Relationship marketing
b. Empowerment
c. Sales orientation
d. Authority to delegate
e. Transactional marketing
Answer:
How can marketers reduce consumers' cognitive dissonance?
a. Offer guarantees
b. Offer sales promotions
c. Avoid contradictory information
d. Change the product
e. Ignore it
Answer:
____ is the set of values, norms, attitudes, and other meaningful symbols that shape
human behavior and is transmitted from one generation to the next.
a. Socialization
b. Customerization
c. Consumerism
d. Lifestyle
e. Culture
Answer:
