Tall Paul’s designs and sells household furniture and furnishings to people who are over
6″6″ tall””a rather small target market. Tall Paul’s uses a(n) _____targeting strategy.
a. benefit
b. undifferentiated
c. multisegment marketing
d. universal product code
e. concentrated
Answer:
Which of the following is the BEST example of an effective question on a mail survey?
a. Do you believe the synergy of the indigenous population has created a precursor to
ecological disaster?
b. Why do you think dogs make good pets and cats make poor pets?
c. Have you ever put food out for wild birds?
d. What is the economy of scale achieved by the transference of heat through solar
cells?
e. Will you be buying a new car soon and will it be a foreign car?
Answer:
_____ is a measure of a Web site’s effectiveness and is calculated by multiplying the
frequency of visits times the duration of a visit times the number of pages viewed
during each visit.
a. Effective reach
b. Effective frequency
c. Gross rating points
d. Interactiveness
e. Stickiness
Answer:
Relationship selling:
a. is also called adaptive selling.
b. is most concerned with making a sale.
c. is more typically used when selling low-involvement products in the consumer
market.
d. is more concerned with developing customer trust than with making a sale.
e. is declining in popularity among businesses because the costs are becoming
prohibitive.
Answer:
Once an individual’s evoked set has been established, evaluation of those alternatives
will determine what information must be obtained during the information search.
a. True
b. False
Answer:
WataniyaMobile
Wataniya Mobile is offering cellular service in the Palestinian territories. It is only the
second cell phone carrier in the region and is significant because it is owned by foreign
companies and investors like the Qatari royal family and the Palestine Investment Fund.
The new service is aimed at increasing cell phone penetration, which is only 35 percent,
in this economically challenged area. It has not been easy for Wataniya, though. It took
two years to gain the required license from Israel, which controls the Palestinian
territories’ airwaves and bandwidth required for the service. Even though Wataniya is
allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which
is not enough for it to offer 3G mobile services that enable Web browsing and e-mail.
Refer to Wataniya Mobile. Wataniya Mobile has spent $100 million on infrastructure so
far and will spend another $700 million over the next ten years. This is an example of
which method of entering the global marketplace?
a. Exporting
b. Licensing
c. Contract manufacturing
d. Direct foreign investment
e. Complete
Answer:
____ involves developing product or service offerings customized for the appropriate
customer segment and then pricing and communicating these offerings for the purpose
of enhancing customer relationships.
a. Transaction management
b. Campaign management
c. Data mining
d. Consumerism
e. Knowledge management
Answer:
One of the most popular approaches for Internet advertising is search engine ads.
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 WallStreetJournalrecently 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. The durian fruit is a unique product. To many people in Thailand,
no other fruit tastes or smells anything like the durian. Its uniqueness, in the eyes of the
customer, would tend to have which of the following?
a. It would have little effect.
b. It would tend to make the durian more price elastic.
c. It would tend to make the durian more price inelastic.
d. It would tend to raise the price in comparison to purchasing power.
e. It would tend to impact the durian’s stage in the PLC.
Answer:
Ralph played mediocre golf for over 20 years. Then he retired and vowed to improve
his golf game by buying one of the sets of new golf clubs that promise increased
distance and have a $700 price tag. According to Maslow’s hierarchy of needs, Ralph is
most likely trying to satisfy his needs.
a. social
b. safety
c. self-actualization
d. physiological
e. psychological
Answer:
AppleiPhone
Apple, Inc.’s iPhone first went on sale on June 29, 2007. Apple’s loyal and enthusiastic
customer base is known for rushing to purchase its new products, and the iPhone
enjoyed a tremendous amount of buzz before its introduction. As expected, the iPhone
entered the market at what many believed to be a high price ($599). However, within
weeks, the price was reduced to $399. By the end of 2007, over eight million iPhones
had sold in the U.S. marketplace. By most, if not all measures, the original iPhone was
a huge success for Apple and its then-exclusive U.S. carrier AT&T.
On July 11, 2008, Apple, Inc. released the iPhone 3G, which it advertised as being
twice as fast as the original iPhone for half the cost. However, in order to obtain an
iPhone at the new price of $199, buyers had to agree to a two-year service contract with
AT&T. This approach succeeded, and over a million iPhone 3Gs were sold during the
introductory weekend. In 2011, the iPhone 4Sthe fifth generation iPhoneled cellular
phone sales with more than 25 million units sold. Several Android-based phones
manufactured by Samsung were not far behind, however.
Refer to Apple iPhone. Apple has several options available for competing with
Samsung and its Galaxy S III phone. If Apple chooses to compete by pricing its product
at a low price to drive Samsung out of the market, this would be considered:
a. price fixing
b. retail price maintenance
c. price discrimination
d. predatory pricing
e. fair competition
Answer:
People for the Ethical Treatment of Animals (PETA) is the largest animal rights
organization in the world. PETA works for better treatment of animals instead of
achieving profits, market share, or return on investment. PETA is an example of a:
a. patronage-oriented organization
b. synergistic entity
c. company with no equity
d. service provider
e. nonprofit organization
Answer:
The activities that enable the demand management process to work include:
a. customer data collection.
b. forecasting of future demand.
c. sales and operations planning.
d. the development of activities that tend to ‘smooth out” demand.
e. All of the above.
Answer:
HallmarkCards
Hallmark Cards is just one of thousands of companies that have a strong online
presence. Hallmark’s Twitter
account and Facebook page allow the company to talk directly to customers and also
lets the customers talk to each other. Hallmark Social Calendar is a Facebook app that
helps users stay on top of special events like birthdays and anniversaries; customers can
use the app to send electronic cards to their friends’ PCs and cell phones. In addition,
Hallmark operates several blogs, where it shares anecdotes about the company and
often solicits opinions on various aspects of greeting card design and on ideas for gifts
and their pricing. The company encourages Facebook fans to talk about their lifestyles
and even upload photos of themselves so that it can better understand its market. The
conversations consumers have with each other often result in interesting insights, such
as gift ideas for specific occasions and the prices they are willing to pay for different
gifts.
Refer to Hallmark Cards. Which of the following is an example of Hallmark’s use of
mobile marketing?
a. Asking customers’ opinions about products
b. Encouraging customers to talk about their lifestyles
c. Establishing a Twitter account
d. Enabling customers to send electronic cards to friends’ cell phones
e. Sharing company anecdotes on its blog
Answer:
TruGreen offers lawn care, shrub care, carpet cleaning, and industrial lawn services.
These different services combine to make TruGreen’s:
a. service mix.
b. standardization strategy.
c. component services.
d. customized services.
e. distribution strategy.
Answer:
As a marketing tool in the United States, social class:
a. is useful for lifestyle distinctions between groups.
b. is just a simple measure of income level.
c. offers few insights concerning consumer behavior.
d. is not used because the United States is a classless society.
e. has demonstrated that all classes of consumers shop in the same stores.
Answer:
All of the following are functions served by objectives EXCEPT:
a. communicating philosophies and provide direction
b. motivating employees
c. clarifying executives’ thinking
d. forming the basis for control
e. guaranteeing market performance
Answer:
Which type of product modification is an aesthetic product change?
a. Functional
b. Quality
c. Repositioning
d. Style
e. Planned
Answer:
“Conversationalists” are social media users who:
a. post comments, ratings, and reviews of products and services on blogs and forums.
b. read blogs, listen to podcasts, and watch videos.
c. visit many social media sites every day.
d. post status updates on social networking sites and microblogging services such as
Twitter.
e. use RSS feeds to collect information and vote for Web sites online.
Answer:
Which of the following best characterizes the underclass?
a. Highly educated underachievers whose incomes are below most comparably
educated workers; often referred to as ‘slackers.”
b. People who are not regularly employed and who depend primarily on the welfare
system for sustenance; they have little schooling and live below the poverty line.
c. Individuals who derive most of their income from the “underground economy” and
who tend to “fly under the radar” of the Internal Revenue Service.
d. Middle-level blue-collar workers largely working in skilled or semi-skilled service
jobs; their income is below the national average.
e. Low-paid service workers and operatives; they have some high school education a
below-mainstream living standard.
Answer:
BaseballDirt
Dirt is not dirt when it comes to baseball fields. About two-thirds of the pro baseball
fields get their dirt from a dirt farm in New Jersey called Partac Peat. The company
markets a secret mix for the infield (resilient), the warning track (extra crunchy), and
the pitcher’s mounds (firm). Mounds come in red, brown, orange, and gray colors.
Roger Bossard, the White Sox head groundskeeper, scouted nationwide for dirt before
settling on the mix provided by Partac Peat. (He uses sand under the grassy areas of the
playing field.)
Refer to Baseball Dirt. What type of business product would Partac Peat’s dirt be since
it is used in the making of baseball fields?
a. Equipment
b. Accessory equipment
c. Capital item
d. Processed materials
e. Component parts
Answer:
Another name for an anchor store is a:
a. mass merchandiser.
b. generator store.
c. host store.
d. shopping center pillar.
e. destination store.
Answer:
ArtSupplies
It’s September and Sophia wants to buy some arts and crafts supplies for an afterschool
program she is developing for her daughter’s elementary school. In her Sunday
newspaper was a flyer from Michaels, an arts and crafts retailer. As she looked through
the newspaper insert, she noticed that if she purchased three or more bottles of Alene’s
Tacky Glue, the regular price of $1.50 each was reduced to $1.15 each. She also saw
that the store priced its plastic storage boxes at $1.99, $3.99, and $5.99. She thought
they would be useful for storing each child’s projects. On the front page of the flyer was
an ad for Funky Girls Gel Pens, something she knew her daughter would love to use.
The price at Michael’s was $6.99 lower than the price she had found at the other stores
that carried the pens. She thought that some of the older girls might like to start a
scrapbook and was pleased to find that Michaels had a scrapbook starter kit, which
includes scissors, book, pages, and stickers for only $15. The items could be purchased
separately for $19.99. The flyer also announced that all flag-related items leftover from
its Fourth of July sale were reduced by 40 percent.
Refer to Art Supplies. What pricing practice was used to price the plastic storage boxes?
a. Seasonal pricing
b. Price shading
c. Price lining
d. Inelastic pricing
e. Cumulative pricing
Answer:
____ are products consumers see as being basically the same, so consumers shop for the
lowest price.
a. Low-prestige specialty products
b. Product equivalents
c. Heterogeneous shopping products
d. Generic convenience products
e. Homogeneous shopping products
Answer:
When deciding on distribution plans for specialty products, companies generally ensure
that the items are:
a. made available only as private brands.
b. made available in a large number of stores in a geographic area.
c. made available only through the mail.
d. distributed to a considerable number of stores in a geographic area.
e. distributed to only a few stores in the geographic area.
Answer:
Papa John’s pizza chain uses UPS trucks to carry supplies to its franchises. Papa John’s
does not own the trucks but has contracted with UPS to have all of the trucks it uses in
its deliveries to Papa John’s establishments painted with the Papa John’s logo and
company colors. Papa John’s is using:
a. a horizontal distribution channel.
b. a selective distribution channel.
c. outsourcing.
d. multisourcing.
e. a portable inventory control system.
Answer:
The quality of secondary data should never be questioned.
a. True
b. False
Answer:
The demand for consumer goods often affects the demand for business products. This
characteristic of business markets is called _____ demand.
a. elastic
b. inelastic
c. fluctuating
d. derived
e. joint
Answer:
Many airlines offer passengers the option to purchase carbon offsets as an
environmentally friendly compensation for their carbon footprint. For example, Delta
customers can pay $10 to a fund that plants trees as a way to offset the carbon
emissions from the airplane. Some would say Delta is:
a. acting in accordance with recent rulings by the U.S. Supreme Court
b. socially responsible
c. not ethically motivated
d. demonstrating a lack of concern for diversity
e. using issue-oriented marketing
Answer:
An ad in a trade magazine targeted to veterinarians urges them to prescribe Hepato for
cats and dogs with damaged livers. This ad was placed by the product’s manufacturer.
This ad is an example of how manufacturers use a(n) ____ strategy.
a. kinetic
b. pull
c. inertia
d. advertorial
e. push
Answer:
The goal of competitive advertising is to influence demand for a specific brand.
a. True
b. False
Answer:
Shannon Murphey wanted to increase sales at his Tyler, Texas, jewelry store, Murphey
the Jeweler. After analyzing his sales figures, he decided to give away $50 gift
certificates for local businesses to give to their employees. “Many people used the gift
certificates as credit toward more expensive items,” explains Murphey. Murphey used
a(n) ____ strategy.
a. pull
b. push
c. kinetic
d. inertia
e. cash-flow
Answer:
All of the following are categories of adopters in the diffusion process of innovations
EXCEPT:
a. laggards
b. innovators
c. early majority
d. early adopters
e. doubters
Answer:
Many people drink bottled water today, but one national brand of bottled water was not
‘springfresh” as advertised. The water actually came from a well located in the middle
of an industrial warehouse facility and next to an industrial waste site. To which
organization should the consumers who thought the advertising for the bottled water
was misleading complain?
a. Consumer Product Safety Commission
b. Food and Drug Administration
c. Federal Trade Commission
d. Federal Communications Commission
e. Consumer Protection Agency
Answer:
Environmental scanning entails the collection and analysis of information about factors
that may affect the organization as well as the identification of market opportunities and
threats.
a. True
b. False
Answer: