If you followed the suggestions of Robert M. McMath, which of the following provides
the best advice for a marketer, such as Colgate, when launching a new consumer
product, such as toothpaste?
A. Anticipate the future five years out in terms of product form, ingredients, and
packaging – to invent the “toothpaste of tomorrow!”
B. Give the product a mysterious name that is unrelated the product’s benefits but
instead provokes consumer curiosity.
C. Initiate a Facebook campaign against beverages sweetened with high fructose corn
syrup, which can contribute to tooth decay.
D. Create unusual packaging that has special shelving requirements.
E. Study past toothpaste product failures and learn from them.
Answer:
Recent Bayer ads stating, “We cure more headaches than you think,” are intended to
inform consumers that the company produces many products in addition to aspirin.
What type of ad is this?
A. pioneering institutional advertisement
B. competitive institutional advertisement
C. advocacy institutional advertisement
D. reminder institutional advertisement
E. subliminal institutional advertisement
Answer:
Prudential Ad
The Prudential ad shown above is targeted at which generational cohort?
A. echo-boomers
B. Generation Xers
C. Generation Yers
D. baby boomers
E. baby busters
Answer:
As the number of intermediaries between a producer and buyer increases, the channel is
viewed as increasing in __________.
A. variety
B. scope
C. depth
D. scale
E. length
Answer:
The manager of a small gasoline station observes that while gasoline sales have been
steady, the service side of the business has fallen off, and mechanics are often idle. He
decides to offer a promotion, a $20 off coupon for an oil change mailed to 800
households within a two-mile radius. The cost of printing and mailing is $1,000. The
normal cost of an oil change is $40. Materials and labor per oil change costs $15. If 200
customers use the coupon, what will be the total profit of the promotion based on the
profit equation?
A. ($4,000)
B. ($1,000)
C. $0
D. $1,000
E. $4,000
Answer:
The restrictions that state and federal laws place on business with regard to the conduct
of its activities are referred to as
A. jurisprudence.
B. competitive constrains.
C. barriers to entry.
D. restraints of trade.
E. regulation.
Answer:
The description of a population according to selected characteristics such as age,
gender, ethnicity, income, and occupation is referred to as __________.
A. product group profiling
B. demographics
C. behavioral analysis
D. psychographics
E. statistical analysis
Answer:
Recently, Matt Kistler, a senior vice-president at Walmart, claimed the company was
making progress on achieving three major goals: (1) to be supplied by 100% renewable
energy; (2) to create zero-waste; and (3) to increase the sale of renewably-produced
products. Walmart is focusing on
A. using ecological buying centers.
B. complying with government regulations.
C. engaging in cause marketing.
D. using sustainable procurement.
E. meeting ISO 9000 standards.
Answer:
Service firms can manage their physical environment to influence customers’
perceptions through
A. service delivery management.
B. relationship management.
C. customer experience management.
D. exposure management.
E. impression management.
Answer:
Josh told his father that the family needed a new computer, so his dad asked him to look
into the latest products and their prices. Josh’s mom asked that the new computer have
an ergonomic keyboard because she has wrist problems. His sister Ann wanted the
computer to have a lot of memory to edit videos. With this information, Josh’s dad
chose and ordered a Dell. Which best describes the roles each family member played in
making this decision?
A. Josh’s mother and Ann acted as information gatherers, users, and decision makers.
B. Josh took on all the roles except that of purchaser.
C. Josh’s father took on all of the roles.
D. Ann acted as a user and an influencer.
E. Josh’s mother acted as an information gatherer, a user, an influencer, and a
gatekeeper.
Answer:
In television or radio advertising, a rating refers to
A. the number of different people or households exposed to an advertisement and they
buy the offering that was advertised.
B. the average number of times a person in the target audience is exposed to a message
or advertisement.
C. the percentage of households in a market that are tuned to a particular television or
radio station.
D. a commonly used reference number an advertiser calculates (reach multiplied by
frequency) to determine whether it has achieved its advertising objectives.
E. the percentage points of market share a firm garners for its advertisements relative to
its competitors.
Answer:
A situation analysis requires a firm to consider the external forces and trends that affect
it. Some of these may be favorable to the organization while others may be unfavorable.
Which of the following is an example of an external force?
A. The firm buys its own fleet of trucks, so it no longer needs to hire a trucking
company for distribution.
B. A hiring freeze is put into place. Although no one is fired, no one can be hired.
C. A goal is set to close the gap between production costs and profits.
D. A local government requires that all businesses within the city limits must recycle or
be fined.
E. Shareholders are rewarded with a sizeable dividend check.
Answer:
Which of the following is the best example of an equipment-based service?
A. lawn care
B. doctors
C. taxis
D. lawyers
E. janitorial services
Answer:
There are __________ World Trade Organization countries, including the United States,
which account for more than 90 percent of world trade.
A. 37
B. 52
C. 97
D. 113
E. 159
Answer:
Fifty percent or more of American adults have not had their teeth checked by a dentist
within the last five years. For these people, dental services would most likey be
classified as a(n)
A. shopping product.
B. convenience product.
C. specialty product.
D. unsought product.
E. business product.
Answer:
Idea generation is the stage in the new-product process that
A. develops a pool of concepts to serve as candidates for new products.
B. selects a single concept and scrutinizes it for all potential benefits and flaws.
C. separates ideas into two categories: consumer-oriented and organization-oriented.
D. requires the organization to perform a SWOT analysis and an environmental scan.
E. consists of the techniques used to screen and reject those ideas that have no merit.
Answer:
What stage of the product life cycle is a period when little money is spent in the
promotional mix?
A. decline
B. maturity
C. growth
D. introduction
E. incubation
Answer:
__________ of all new businesses fail within five years of their launch.
A. Only 5 percent
B. Only 10 percent
C. Only 25 percent
D. About 40 percent
E. Over 50 percent
Answer:
Product development refers to the marketing strategy of
A. increasing sales of current products in current markets.
B. selling current products to new markets.
C. selling new products to new markets.
D. selling new products to current markets.
E. selling the same brands in both current and new markets.
Answer:
The most common cross-channel shopping and buying path is to browse one or more
websites and then
A. negotiate among competitors for the lowest price.
B. find the item on an auction site such as eBay.
C. contact the manufacturer directly.
D. click on the shopping cart icon to purchase the product or service.
E. purchase the item at a retail store.
Answer:
The marketing manager looks for two kinds of deviations, each triggering a different
kind of action: (1) actual results fall short of goals and (2) __________.
A. deviations that result from major shifts in customer needs
B. actual results exceed goals
C. there are no deviations but there should be
D. deviations that result from executive mandates
E. deviations that are blamed on insufficient marketing support (personnel or funding)
Answer:
Twenty years after the Clayton Act, the growth of grocery store chains led many to fear
that retail chains presented a threat to smaller, independent retailers. The federal
government enacted the __________ to make it unlawful to discriminate in prices
charged to different purchasers of the same product, where the effect may substantially
lessen competition or help to create a monopoly.
A. Fair Trade Act
B. Clayton Act
C. Lanham Act
D. Robinson-Patman Act
E. Unfair Practices Act
Answer:
Toyota Motor Corporation executives were widely criticized for their failure to practice
__________ when selected Toyota brands were linked to sticky gas pedals, which can
lead to sudden acceleration problems. The company recalled over 9 million cars
worldwide under pressure from the National Highway Traffic Safety Administration
and thousands of consumer complaints. Toyota’s handling of the situation resulted in
accidents and ultimately lower sales, which affected Toyota consumers, employees,
suppliers, and dealers.
A. moral idealism
B. stakeholder responsibility
C. utilitarianism
D. cause marketing
E. profit responsibility
Answer:
A financial indicator used to compare the increase in sales of stores that have been open
for the same period of time is referred to as __________.
A. return on investment
B. percentage of markup
C. gross profit
D. sales per square foot
E. same-store sales growth
Answer:
Services are
A. the tangible activities or benefits that an organization provides to satisfy consumers’
needs in exchange for money or something else of value.
B. the activities provided to complement a tangible good, such as technical support for
a computer.
C. the intangible activities or benefits that an organization provides to satisfy
consumers’ needs in exchange for money or something else of value.
D. any activity required for the production of a good that cannot be completed
“in-house” and must be outsourced to another firm.
E. the human (nonmechanical) component that is part of the manufacturing process.
Answer:
Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to
offer
A. a low-priced product to a high-income or high net worth segment.
B. a high-priced product to a low-income or low net worth segment.
C. different variations of the same basic offering to high-end and low-end segments.
D. a high-priced and a low-priced offering to a single market segment.
E. different offerings to high-end and low-end segments.
Answer:
Among consumer products, advertising and wide distribution are especially important
for
A. durable goods.
B. specialty products.
C. nondurable goods.
D. production goods.
E. semidurable goods.
Answer:
To create a market-product grid for bed pillows, the most effective way to segment the
market would be using
A. the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years
and older.
B. the sleeper’s annual income: less than $25,000, $25,000 to $49,999, or $50,000 and
over.
C. the sleeper’s gender: male or female.
D. the time of sleep: day or night.
E. how the sleeper sleeps: side, back, or stomach.
Answer:
A need refers to
A. a sense of personal inadequacy based upon observations by others around you.
B. a sense of urgency, which causes a person to take action.
C. a feeling that is shaped by a person’s knowledge, culture, or personality.
D. a feeling of being deprived of something, but not fully understanding what it may be.
E. a situation when a person feels deprived of basic necessities such as food, clothing,
and shelter.
Answer:
Which of the following types of firms would be most likely to use a global marketing
strategy?
A. multidomestic
B. multinational
C. multicountry
D. transnational
E. transborder
Answer:
Friendship in the Maslow hierarchy of needs is an example of a __________ need.
A. self-actualization
B. personal
C. social
D. safety
E. physiological
Answer:
The demand for a business product that results from the demand for a consumer product
is referred to as
A. sequential demand.
B. selective demand.
C. primary demand.
D. secondary demand.
E. derived demand.
Answer:
Pulse scheduling would most likely be used for advertising __________.
A. bathroom cleaning supplies
B. breakfast cereal
C. socks
D. motor oil
E. long-stemmed roses
Answer:
Horizontal conflict refers to conflict that occurs between
A. two different levels in a marketing channel.
B. members of upper management who make the marketing channel decisions and
lower management who must implement these decisions.
C. two producers of the same product vying for the same distribution channel members.
D. two members in the same level of a marketing channel.
E. a firm’s and its customers’ goals.
Answer: