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Sanguine Services is a small company that uses a marketing strategy in which its
limited resources are employed to target a large share of two small market segments.
Sanguine most likely uses which of the following marketing strategies?
A) individual marketing
B) one-to-one marketing
C) mass marketing
D) concentrated marketing
E) trigger-based marketing
Answer:
Business buyer behavior refers to the ________.
A) buying behavior of consumers who buy goods and services for personal
consumption
B) buying behavior of the organizations that buy goods and services for use in the
production of other products and services that are sold, rented, or supplied to others
C) buying behavior of consumers who rely on small retailers for the regular supply of
provisions
D) decision process by which business buyers determine which products and services
their organizations need to purchase
E) strong affinity of businesses for value-for-money deals
Answer:
Refer to the scenario below to answer the following question(s).
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small,
seaside motel to a thriving year-round resort in just a few years. Atop a cliff
overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during
summer, but then faced a tremendous downturn in business during winter. "But, given
the established industries in the nearby towns, very little year-round competition, and
our close proximity to Portland," Carol added, "I couldn't understand why seasonality
had to hit Seagull Terrace so hard!"
So Carol spent her first winter devising a new marketing plan. She put together a
promotional package designed to attract business travelers year-round. Carol's plan also
involved a seasonal promotional gimmickto be implemented from early winter to late
springthat would attract the same numbers as the large summer crowd. Her idea
worked! During her second winter, Carol greeted numerous business travelersboth
satisfied repeat guests as well as new guests who had been snagged by her promotional
appeals.
"We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that
are a part of the local cuisine, but we'd like to expand that. We provide health club
privileges off-site, but we'd like to eventually provide our own. These are goals I hope
to achieve in a few years. Our first project, however, included a renovation of our guest
rooms and I'm quite proud of the results." Carol then added, "Actually there are so
many possibilities. With an indoor pool area, I will eventually offer weekend getaways
throughout winter."
Seagull Terrace offers its customers good accommodations, local delicacies, and
amazing seaside views. The overall experience provided at the motel is a part of its
________.
A) market offering
B) target market
C) market segment
D) product positioning
E) marketing mix
Answer:
Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many electronic toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory
nodes along the edges. After being charged in the sunlight, the vacuum could run for 7
hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into
table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the
objects in various directions. This is the same type of technology used in the
manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely be
reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a
multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and
several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will
notice it, even if they don't buy it right away."
Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is
designed to effortlessly vacuum clean the floors of on-the-go and elderly consumers.
A) product placement
B) product concept
C) product image
D) product idea
E) virtual product
Answer:
A company must pay each month's bills for rent, heat, interest, and executive salaries
regardless of the company's level of output. This exemplifies its ________ costs.
A) overhead
B) variable
C) target
D) total
E) unit
Answer:
Consumers' names and additional information likely become part of ________
whenever they enter a sweepstakes, apply for a credit card, visit a Web site, or send a
tweet.
A) other consumers' contact lists
B) telemarketers' lists
C) their computer's cookie history
D) a company's database
E) the FTC's surveys regarding online privacy
Answer:
Which form of marketing research involves talking with people in their homes or
offices, on the street, or in shopping malls?
A) individual interviewing
B) focus-group interviewing
C) telephone interviewing
D) mail questionnaires
E) observational research
Answer:
Deceptive promotion includes practices such as misrepresenting the product's
________.
A) price or packaging
B) features or performance
C) size or quantity
D) wholesale or retail price
E) packaged contents
Answer:
________ occurs when a company introduces additional items in a given product
category under the same brand name, such as new flavors, forms, colors, ingredients, or
package sizes.
A) Line extension
B) Megabranding
C) Interactive marketing
D) Internal marketing
E) Co-branding
Answer:
Which of the following is a political and legal factor that a company should consider
before deciding to enter into a new country?
A) monetary and trade regulations
B) transportation structure
C) population size and growth
D) industrial infrastructure
E) business norms and approaches
Answer:
Which of the following is a major advantage of the market organization?
A) The company is organized around the needs of specific customer segments.
B) The company exploits bleeding-edge technologies to keep ahead in the market.
C) The company has a flat organizational structure.
D) The company allows its salespeople to settle into a specific territory.
E) The company caters to a single, small market segment.
Answer:
A pastor from Kansas believes that adultery is immoral. This refers to the pastor's
________.
A) secondary belief
B) acquired belief
C) social identity
D) core belief
E) cultural orientation
Answer:
A manager in a garment manufacturing company decided to replace the plastic
shopping bags currently used in his company with bags made of recyclable material.
Consequently, he asked the operations officer to gather relevant information and send a
list of alternatives to him. In the business buying process, the manager is preparing a(n)
________.
A) problem statement
B) general needs description
C) supplier list
D) proposal solicitation
E) order-routine specification
Answer:
A ________ is the way consumers perceive an actual or potential product.
A) product idea
B) product concept
C) product image
D) brand personality
E) concept test
Answer:
Refer to the scenario below to answer the following question(s).
Alden Manufacturing produces small kitchen appliancesblenders, hand mixers, and
electric skilletsunder the brand name First Generation. Alden attempts to target
newlyweds and first-time home buyers with this brand.
Considering that most young households have limited financial resources, Alden
attempts to engage in target costing. "In doing this," says Milt Alden, the co-founder of
Alden Electronics, "we have better control over keeping price right in line with
customers."
Alden manufactures a three-speed blender, its top seller, along with a five-speed
blender. The hand mixers are manufactured in two variantsa small handheld mixer with
two rotating beaters and another that comes with an optional stand and an attached
mixing bowl. Alden's temperature-controlled skillets are manufactured in a single style
with three color options.
"Our product offerings are narrower," Milt Alden added, "but our line workers know
each product like the back of their hands. This allows us to produce superior products
while holding our prices low.
Milt Alden uses which of the following strategies for pricing his products?
A) basing company price on competitors' prices
B) using everyday low pricing
C) initiating an aggressive promotional campaign
D) starting with customer-value considerations
E) focusing on overall fixed costs of manufacturing
Answer:
________ allowances are price reductions given for turning in an old item when buying
a new one.
A) Promotional
B) Trade-in
C) Depreciation
D) Segmented
E) Functional
Answer:
Refer to the scenario below to answer the following question(s).
Champion, Inc. is a manufacturer of lunch boxes, school bags, and school stationery.
Charles Payton, the CEO of Champion, hopes to sell the products at a low price to
penetrate the market quickly.
Noticing that themed envelopes aren't selling well, Charles Payton decides to offer
customers a special "letter writing" kit. He prices the kitwhich comprises letter paper,
matching envelopes, and pensat $5, even though the combined prices of the individual
items is $8. Which of the following pricing strategies is he using?
A) optional product pricing
B) product bundle pricing
C) by-product pricing
D) dynamic pricing
E) captive product pricing
Answer:
A women's apparel manufacturer in California recently acquired a Houston-based
company that manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation
Answer:
The ________ Web site provides a single point of entry through which commercial
vendors and government buyers can post, search, monitor, and retrieve opportunities
solicited by the entire federal contracting community.
A) U.S. Small Business Administration
B) Center for Regulatory Effectiveness
C) Federal Business Opportunities
D) Federal Civil Defense Authority
E) U.S. Commerce Department
Answer:
________ contributes to a product's usefulness as well as to its looks.
A) Sensational style
B) Good design
C) Quality
D) Consistency
E) Packaging
Answer:
In Japan, Budweiser beer flows from Kirin breweries, and Moringa Milk Company
produces Sunkist fruit juice. These are examples of ________.
A) contract manufacturing
B) management contracting
C) licensing
D) joint venturing
E) directly investment
Answer:
In the marketing mix, design, packaging, services, and variety can be categorized under
________.
A) product
B) price
C) promotion
D) place
E) position
Answer:
The major purpose of test marketing is to provide management with the information
needed to make a final decision about ________.
A) how to develop a marketing strategy
B) which market to compete in
C) whether to launch the new product
D) how to compete in the market
E) how long to compete in the market
Answer:
________ are designed to engage consumers in interactions that will move them closer
to a direct purchase or other marketing outcome.
A) Online magazines
B) Marketing Web sites
C) Search engines
D) Digital catalogs
E) Podcasts
Answer:
Which of the following is a portfolio-planning tool for identifying company growth
opportunities through market penetration, market development, product development,
or diversification?
A) BCG matrix
B) analysis of variance
C) product/market expansion grid
D) Harris matrix
E) SWOT analysis
Answer:
A particular automobile company works to keep its customers happy after each sale,
aiming to delight each one of them in order to increase their customer lifetime value.
Which of the following steps of the buyer decision process does the company
exemplify?
A) need recognition
B) information search
C) evaluation of alternatives
D) purchase decision
E) postpurchase behavior
Answer:
________ refers to the unique psychological characteristics that distinguish an
individual or group.
A) Attitude
B) Belief
C) Perception
D) Personality
E) Self-awareness
Answer:
A ________ is made up of the company, suppliers, distributors, and customers who
partner to improve the performance of the entire system.
A) value delivery network
B) horizontal channel
C) consumer base
D) product delivery network
E) product line
Answer:
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
categories
Answer:
A group of business entrepreneurs who worried about their teenage children drinking
and driving decided there must be some way to approach this problem proactively. They
came up with an idea for a pair of blurry goggles. They believed looking through the
goggles would simulate what the world looks like when someone is seriously
intoxicated. They developed a crude pair of blurry goggles to show prospective
customers. This crude pair of goggles is known as a ________.
A) prototype
B) concept test
C) product concept
D) product image
E) product idea
Answer:
Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via
Star City stores. This is an example of a(n)________ distribution system.
A) conventional
B) inclusive
C) intensive
D) extensive
E) multichannel
Answer:
In conducting ________, the company first identifies the major attributes that
customers value and the importance customers place on these attributes. Next, it
assesses its performance against competitors on those valued attributes.
A) a customer value analysis
B) benchmarking
C) entrepreneurial marketing
D) intrepreneurial marketing
E) a customer lifetime value estimate
Answer:
Dale's Drugstore sells cough medicine that is sour and ineffective. This is an example of
a ________ product.
A) societal
B) pleasing
C) salutary
D) deficient
E) desirable
Answer:
