Which of the following questions is NOT likely to be asked during the business analysis
stage?
a. What is the likely demand for the product?
b. Which celebrity spokesperson can we hire to promote the product?
c. Would current customers benefit from the product?
d. What is the risk of failure?
e. What new facilities would be needed?
Answer:
Highly integrated supply chains (those that are successful in achieving many or all of
these types of integration) have been shown to be better at:
a. satisfying customers.
b. managing costs.
c. delivering high-quality products.
d. enhancing productivity.
e. All of the above
Answer:
Housing several departments under one roof, a ___ carries a wide variety of shopping
and specialty goods, including apparel, cosmetics, housewares, electronics, and
sometimes furniture.
a. supermarket
b. specialty store
c. convenience store
d. super club
e. department store
Answer:
ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and
joints. The product is advertised as a powerful pain reliever and a source of deep muscle
relaxation. Its soothing warmth can work at night while you sleep to restore your body.
The manufacturer of ThermaCare heat wraps is using _____ segmentation.
a. geodemographic
b. functional
c. benefit
d. socioeconomic
e. feature-based
Answer:
Which of the following is the customers’ evaluation of a good or service in terms of
whether that good or service
has met their needs and expectations?
a. Value
b. Perception
c. Attitude
d. Dissonance
e. Satisfaction
Answer:
When Coca Cola introduced Coke Zero, this was an example of a strategy.
a. repositioning
b. product line extension
c. cannibalization
d. disintermediation
e. demarketing
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. Best Buy also carries the iPhone. If Best Buy, Apple, and
leading cellular carriers meet to agree on a price for the iPhone, they are likely guilty of
_____.
a. price fixing
b. retail price maintenance
c. price discrimination
d. penetration pricing
e. price skimming
Answer:
Miniblogs are blogs that entail shorter posts than traditional blogs.
a. True
b. False
Answer:
A(n) ____ is characterized by the researcher altering one or more variablessuch as price
or package design”” while observing the effects of those alterations on another
variablesuch as total sales.
a. observation research project
b. research problem
c. experiment
d. sampling frame
e. correlation of facts study
Answer:
A newspaper ad for General Mills cereal highlights its BoxTop Redemption program in
which General Mills donates cash to schools when the schools redeem box tops from
General Mills cereal. This ad focuses on:
a. a product attribute.
b. production implementation.
c. a product mission.
d. creating product loyalty.
e. a product benefit.
Answer:
Any one-at-a-time sale, such as a movie theater ticket, a meal at a restaurant, or public
transportation fare, is called a(n) ____ transaction.
a. patronage
b. interactive
c. distinct
d. affiliation
e. discrete
Answer:
Muslim countries are receptive to most Disney products, but they have asked Disney
not to include Piglet when it sells its Winnie the Pooh characters because Muslims (as a
part of their religious beliefs) contend that pork in any form is unclean. This is an
example of a _____ factor that directly affects Disney’s global operation.
a. political structure
b. cultural
c. technological
d. competitive
e. natural resource
Answer:
An ad for Crystal Geyser bottled water shows why and how the bottler supports the
reforestation of America’s forests. What kind of an advertising appeal is this ad using?
a. Environmental Consciousness
b. Concern
c. Health
d. Profit
e. Admiration
Answer:
Returns average as much as percent of sales volume in certain cases.
a. 2
b. 6
c. 10
d. 25
e. 40
Answer:
____ is communication by marketers that informs, persuades, and reminds potential
buyers of a product in order to influence an opinion or elicit a response.
a. Distributive communication
b. Perceptual communication
c. Statistically provable advertising
d. Promotion
e. Publicity
Answer:
A focus on maximizing the number of customers using a service is a(n) ___ pricing
objective for service firms.
a. maximization of demand
b. patronage-oriented
c. profitability-oriented
d. operations-oriented
e. revenue-oriented
Answer:
You have been given the task of creating a questionnaire that requires each respondent
to provide a rich array of information based on his or her own frame of reference.
Which of the following types of questions would best deliver such information?
a. True-false questions
b. Mix-and-match questions
c. Open-ended questions
d. Scaled-response questions
e. Closed-ended questions
Answer:
Southwestern Company recruits and trains college students to sell educational
reference books, software, and children’s books door-to-door. This form of non-store
retailing is called:
a. direct retailing
b. personal marketing
c. direct marketing
d. automatic vending
e. electronic retailing
Answer:
The point at which marginal cost and marginal revenue are equal always results in:
a. maximization of elasticity.
b. maximization of revenue.
c. maximization of costs.
d. maximization of profits.
e. break-even equilibrium.
Answer:
A dominant characteristic of the late majority is:
a. deliberateness
b. skepticism
c. respect of others
d. cheerfulness
e. optimism
Answer:
China’s new 5 percent tax on disposable wooden chopsticks, reflecting concerns about
deforestation, has been praised by environmentalists. The move is hitting hard at the
Japanese, who consume 25 billion sets of wooden chopsticks annually. Almost all of the
chopsticks used in Japan come from China. The price of wooden chopsticks in Japan
has increased by almost 50 percent. The price increase influences which factor of the
external environment of restaurant owners in Japan?
a. Economic
b. Technological
c. Demographic
d. Social
e. Ethnicity
Answer:
Suppose a Chinese firm makes computer chips at $4.00 per chip but sells the chips for
$2.00 in American markets.
American producers of computer chips cannot supply chips at the low rates that the
Chinese firm is supplying them. The Chinese firm is engaging in dumping.
a. True
b. False
Answer:
EtruscanRailingCompany
Etruscan Railing Company makes railing that is used in sports arenas, nursing home
corridors, queue houses at amusement parks, and many other places that are not as
obvious. Its railing is molded into bicycle racks. You may also see city governments
using the railing to make walkways over ravines and creek banks safer for pedestrian
traffic. Hospitals also use the railing in their physical therapy departments, to keep the
lines straight in the hospital cafeteria, and to prevent patients from falling out of
hospital beds.
Refer to Etruscan Railing Company. Companies that make bicycle racks for bike
safekeeping in public places receive the railing as 30-foot lengths of pipe. For these
companies, Etruscan railing is classified as:
a. supplies.
b. accessory equipment.
c. an installation.
d. processed material.
e. raw material.
Answer:
Zipcar is a car rental service found in many metropolitan areas. It targets people who
take mass transit or carpool to work but who occasionally need a car to run errands,
visit the doctor, or check on a sick child. Zipcar is one of a few companies currently
providing cars that can be rented by the hour. Zipcar has created a(n) advantage.
a. reengineering
b. experience curve
c. service differentiation competitive
d. alternative market
e. sustainable competitive
Answer:
Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently
introduced Oakley’s Thump, UV sunglasses that allow the wearer to store and listen to
120 different songs. Which of the following product characteristics would likely exert
the greatest influence on the market success of these new glasses?
a. Compatibility
b. Comparability
c. Complexity
d. Tangibility
e. Competitive advantage
Answer:
All of the following are sources of a cost competitive advantage EXCEPT:
a. reengineering
b. experience curves
c. break-even analyses
d. efficient labor
e. production innovations
Answer:
____ considerations affecting the wholesaler choice include how often a product is
purchased and how long a customer is willing to wait to receive the product.
a. Market
b. Transactional
c. Product
d. Buyer
e. Logistic
Answer:
Interpersonal communication is:
a. nonpaid information such as publicity.
b. paid communication placed in personal media.
c. long-distance communication between a business and its target market.
d. direct face-to-face communication between two or more people.
e. noise-free communication.
Answer:
ModernMaturitymagazine is targeted toward adults aged 50 years and older. It has
articles on health and fitness as well as the arts and finance. What segmenting base is
Modern Maturity using?
a. Demographic
b. Geographic
c. Nomological
d. Economic
e. Generational
Answer:
A baby boomer’s average life expectancy is at an alltime high of 79.2 years.
a. True
b. False
Answer:
A ___ is a group of people or organizations that has wants and needs that can be
satisfied by particular product categories, has the ability to purchase these products, and
is willing to exchange resources for the products.
a. firm
b. buyer
c. market
d. consumer
e. target
Answer: