One of Cole’s responsibilities as a marketing manager for a motorcycle parts
manufacturer is to maintain market share. Cole believes that the company’s products are
most likely in the maturity stage of the product life cycle. In order to maintain market
share, Cole should suggest that the company requires .
a. moderate to large promotion expenditures
b. moderate to large inventory expenditures
c. moderate production expenditures
d. moderate price increases
e. moderate price decreases
Conair, a manufacturer of appliances and personal care products, adds an electrical
component to its curling iron that automatically switches off the curling iron when it
has been idle for more than an hour. This improvement would best be classified as a(n):
a. product line extension.
b. quality modification.
c. aesthetic modification.
d. brand extension.
e. functional modification.
A cost comparison indicator (such as CPM) should not be used to compare the cost and
impact of a television commercial with the cost and impact of a newspaper
advertisement.
a. True
b. False
The Ford Motor Company has entered into an alliance with Yves Saint Laurent, a maker
of clothing and one of the most successful fashion houses in the world. Yves Saint
Laurent is headquartered in France. Ford will use Yves Saint Laurent designs and color
traditions in its production of luxury models of the company’s Expedition SUV and
Lincoln vehicles. The Yves Saint Laurent elements will appear in the interior and body
paint color. This alliance would most likely be classified as a .
a. strategic alliance
b. franchise agreement
c. global direct ownership
d. multinational enterprise
e. trade contract
Globalization of marketing involves developing marketing strategies as though the
entire world (or major regions of it) were a single entity.
a. True
b. False
In the process of perception, individuals receive sensations through sight, sound, taste,
smell, and hearing. These sensations are called:
a. selective inputs.
b. olfactory receptors.
c. information inputs.
d. perceptual motives.
e. psychological influences.
An advertising campaign is typically developed by an individual or a few persons
within the firm, an advertising department within the organization, or .
a. an advertising agency
b. a group of media specialists
c. a group of multi-skilled managers
d. a ‘special projects” group
e. freelance advertising consultants
Alison lives in a remote area of Montana, where few good roads exist. She runs a small
retail store specializing in western attire. Due to her remote location, Alison is most
likely to obtain the merchandise for her store from
_____.
a. rack jobbers
b. general-line wholesalers
c. mail-order wholesalers
d. truck wholesalers
e. specialty-line wholesalers
______describe the similarities among potential customers within a market segment
and explain the differences among people in different market segments.
a. Market segmentation variables
b. Market segment profiles
c. Segmentation grids
d. Market differentiation indexes
e. Market concentrations
By law, manufacturers must be identified on the labels of private brands.
a. True
b. False
The definition of marketing implies that should receive benefits from exchange
relationships.
a. only customers
b. only businesses
c. company management
d. both customers and businesses e. only selected customers
When a movie theater entices customers to view movies during the daytime by offering
tickets at a reduced price, it is trying to resolve the services marketing challenge of:
a. inseparability.
b. intangibility.
c. customer contact.
d. off-peak demand.
e. heterogeneity.
During July and August, Lakewood Links Golf Course, located in South Carolina,
offers weekday rates of $13 for a round of golf with a cart. During the rest of the year,
the weekday rates are between $25 and $35. This is an example of the use of:
a. differential pricing.
b. incentives.
c. competition-based pricing.
d. demand-based pricing.
e. random discounting.
When is the best time to deal with marketing exchange problems concerning ethics?
a. Right before the problem is made public
b. After the problem has received extensive media attention
c. Immediately after the problem is discovered
d. When lawsuits are brought against the company
e. During the strategic planning process
Laura and Marie own and operate a small restaurant. On a weekly basis, they go to their
local Sam’s Wholesale Club to purchase the food items and cleaning supplies they need
for their business. With the exception of the volume they purchase and the items’
intended use, this grocery shopping trip is identical to a weekly trip by their families to
a grocery store. Sam’s serves as a___________wholesaler for these entrepreneurs.
a. general-line
b. specialty-line
c. full-service merchant
d. Truck
e. cash-and-carry
Which of the following is least likely to be a factor affecting the selection of marketing
channels?
a. Customer characteristics
b. Product attributes
c. Product packaging
d. Competition
e. Environmental forces
Scenario 7.2
Use the following scenario to answer the questions.
Accura Brake Company is a supplier of brake components to the manufacturers of lawn
tractors and 4-wheel ATVs. It also sells its products to independent repair centers,
dealers, and other wholesalers in the northeast and southern states of the USA. Accura
Brake has done research on the demand for lawn tractors and found that most
manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also
shows that most of the dealers who sell directly to individual consumers are in the
Midwestern states, while dealers who sell to small business landscaping companies tend
to be located in the northeastern states. Thus, the board of directors of Accura Brake
Company is considering expansion of its distribution to markets in the Midwest.
Which of the following market types does Accura Brake fall under when selling their
products to individual dealers?
a. Producer
b. Reseller
c. Government
d. Institutional
e. Covert
Marketers should set prices consistent with the firm’s marketing and overall objectives.
a. True
b. False
Johnston Chemicals’ president is very excited about the possibility of the firm’s British
subsidiary having access to customers in the entire EU. He realizes that it will be some
time before this area truly becomes one market, primarily because of differences in:
a. available advertising media.
b. cultural factors.
c. legal challenges.
d. technological advances.
e. economic environmental factors.