When an advertiser decides how much space and/or time will be placed in each
advertising medium the company wants to use, the advertiser is determining its:
a. marketing mix.
b. media mix.
c. promotional plan.
d. advertising campaign.
e. reach objectives.
Answer:
When assessing the quality of secondary data, it is:
a. not necessary to know why the data were collected in the first place
b. important to be able to have easy access to the data
c. important to know the purpose for which the data were originally collected
d. not important to know when the data were collected
e. imperative to use the same methods and procedures when primary data are collected
Answer:
The place a product, brand, or group of products occupies in consumers’ minds relative
to competing offerings is referred to as a product’s:
a. status
b. equity
c. frame
d. role
e. position
Answer:
Many people in the United States choose to drink light beer because they value thin and
fit bodies. In Europe, light beers have had little success because flavor is valued more
highly. For international beer manufacturers, this difference illustrates how ______
influence(s) marketing.
a. demography
b. competition
c. social factors
d. economic conditions
e. technology
Answer:
A marketing manager would expect his or her product to be a high-involvement product
for most consumers if it:
a. is a product adaptation of a market leader
b. is a necessity
c. has not been purchased before
d. has low social visibility
e. requires substantial financial investment
Answer:
Teenage boys make up the vast majority of YouTube users.
a. True
b. False
Answer:
Lauren announced to her family last night that she wanted a pair of Heelys. Her sister
Stephanie said she thought it was a stupid idea. Their mother, Susan, said Lauren
deserved a special treat for winning the science fair. Because her father Tom said
nothing, Lauren knew she was not getting the Heelys. In terms of the roles played by
family members in the consumer decision-making process:
a. Lauren was the initiator, and Tom had no role at all.
b. Stephanie was the initiator, and Susan was the decision maker.
c. Lauren was an influencer, and Susan was the decision maker.
d. Lauren was the initiator, and Tom was the decision maker.
e. Lauren was the initiator, and Stephanie had no role at all.
Answer:
Jif is the best-selling brand of peanut butter in the country. The manufacturer purchases
large quantities of peanuts every year to manufacturer its product. This order size is an
example of _____ and would give Jif an advantage over other buyers of peanuts.
a. purchase volume
b. joint demand
c. fluctuating demand
d. sales volume
e. multiplier effect
Answer:
The last step in the marketing research process is to prepare and present the report.
a. True
b. False
Answer:
Ads for Brita water filters describe how one Brita pitcher filter can reduce waste by
effectively replacing as many as 300 standard plastic water bottles. What kind of appeal
is this ad using?
a. Environmental Consciousness
b. Vanity and Egotism
c. Health
d. Profit
e. Admiration
Answer:
Orange growers in Florida have lost millions of dollars due to hurricanes. As a result,
some growers have decided to bulldoze their orange groves and put in freshwater lakes
for raising shrimp, a product that has a strong popularity and is more weather resistant.
Former orange growers who are now raising shrimp are pursuing a strategy.
a. market penetration
b. product development
c. diversification
d. market development
e. product penetration
Answer:
When Honda automobiles first entered the U.S. market, they were small and not very
durable. However, over the years, Honda has modified its automobiles to be one of the
most dependable cars on the market. This change in dependability and durability is
representative of which type of product modification?
a. Style
b. Planned obsolescence
c. Functional
d. Quality extension
e. Quality
Answer:
When Procter & Gamble (P&G) introduced Liquid Tide to a new segment, consumers
in the traditional powdered detergent segment switched to the liquid product. Rather
than real sales growth, P&G simply experienced the shifting of existing customers to a
new product. This exemplifies a drawback of multisegment targeting strategy called:
a. demarketing
b. selective perception
c. undifferentiation
d. cannibalization
e. market repositioning
Answer:
At the most basic level, a firm must be profitable. What level of the pyramid of
corporate social responsibility is this?
a. Social
b. Economic
c. Ethical
d. Legal
e. Accountability
Answer:
General Motors Corporation has a goal of launching an electric vehicle soon. The car
has been in test-drives, and GM is in the process of working out any bugs that may
occur. GM also is in the process of working toward mass production of the vehicle. The
company is in which stage of the marketing plan?
a. Product planning
b. Mechanistic organization
c. Synergistic control
d. Strategic diversification
e. Implementation
Answer:
To increase its revenues, US Airways has decided to sell space on airsickness bags to
sponsoring companies as a different medium for their promotional messages. The most
effective promotional method for US Airways to use to find companies that would like
to pay to have their promotional messages delivered to the hundred or so travelers on
each of its flights would be:
a. push advertising.
b. personal selling.
c. direct advertising.
d. sales promotions.
e. publicity.
Answer:
Tobacco company Philip Morris runs television ads where they promote quitting
smoking and direct viewers to a Web site for support and help. These ads are examples
of _____ advertising.
a. product
b. institutional
c. pioneering
d. environmental
e. comparative
Answer:
____ is the interpretation of the language and symbols sent by a source through a
channel.
a. Development
b. Envelopment
c. Processing
d. Decoding
e. Encoding
Answer:
You have started raising your first litter of AKC-registered Chihuahuas. You want to sell
your puppies to Pets and People, the locally owned and operated pet store. How do you
find the buyer?
a. Look at the formal organization chart of the company.
b. Get a copy of Pets and People’s phone directory, where all buying center members
are listed.
c. Contact the store and probe to see who is in charge of buying.
d. Locate the decider at Pets and People.
e. Wait for Pets and People to call you when they hear about your new breeding
program.
Answer:
In which stage do multicultural companies operate when they set up foreign
subsidiaries to handle sales in one country?
a. Stage one
b. Stage two
c. Stage three
d. Stage four
e. Stage five
Answer:
The two types of costs a marketer needs to consider when setting prices are:
a. primary and secondary.
b. variable and fixed.
c. marginal and absolute.
d. short term and long term.
e. elastic and inelastic.
Answer:
About what percentage of consumers uses coupons or discount promotional codes when
making purchases online?
a. 0.0772 percent
b. 0.772 percent
c. 7.72 percent
d. 77.2 percent
e. 100 percent
Answer:
AdvancedBionics
Advanced Bionics is a global leader in the development of implantable, high-tech
neurostimulation devices used to treat deafness and chronic pain. Just two-and-a- half
years after introducing its new stimulators, the firm is doing $200 million in domestic
sales. How has Advanced Bionics been so successful? Its success can be attributed to its
outstanding products and to three aspects of its sales approach. First, Advanced Bionics
hired the right talent for its sales force. Companies tend to use experienced sales
repsoften hired away from competing companiesto sell new medical devices. This can
be very expensive since experienced reps generally expect as much as $200,000 in
annual income. So when Advanced Bionics brought its medical device to market, it
hired people with no experience selling medical devices and turned them into sales
reps. Hiring inexperienced salespeople created some problems, however, and the
company experienced high turnover rates during its first two years in operation.
Second, Advanced Bionics provided salespeople with a rigorous training program.
Third, Advanced Bionics allowed salespeople to plan their own activities while
managers monitored their progress and pushed them to improve. In short, the company
has been able to succeed by selecting good people, training them well, and managing
them carefully.
Refer to Advanced Bionics. District sales managers at Advanced Bionics often spend
three days per week in the field coaching and monitoring sales reps. This time in the
field with sales reps is an important final task in the management process known as:
a. compensation
b. networking
c. quota determination
d. qualifying sales leads
e. evaluating performance
Answer:
RockTenn
RockTenn produces packaging products. The company makes cartons that will hold a
dozen Dunkin” Donuts, waffle fries for Chik-fil-A, Gillette razors, Haagen-Daz ice
cream, express mail envelopes for FedEx, and much more. RockTenn business
fluctuates depending on consumer demand. As plastic products become more
expensive, companies turn to cardboard and paper to package their products.
Refer to RockTenn. RockTenn makes paper products for companies to use in their
product and service offerings.
As long as there is a demand for Dunkin” Donuts, there will be demand for their
dozendonut cartons, which will ensure demand for paper to manufacture into cartons.
This is an example of demand.
a. derived
b. inelastic
c. joint
d. consumer
e. upward
Answer:
Ad campaigns for Aleve pain reliever emphasize the fact that to get the same relief
offered by one Aleve, you would need to take six aspirin or Tylenol and four Advil.
These promotions are using the positioning base of:
a. product class
b. competitor
c. product user
d. product merits
e. price and quality
Answer:
Fitbit
The pedometer is getting kicked up a notch with the new Fitbit device. The Fitbit is a
$99 motion-detecting sensing device that can measure the user’s activity even when
asleep. It digitally records the distance a user walks or runs, right down to the number
of steps, and calories burned. The device wirelessly sends data to its Web site,
fitbit.com, giving users minute-by-minute details. Users can add consumption
information at the Web site, allowing an accurate picture of calorie consumption and
expenditures. Unlike other devices, like the Nike + iPod Sport Kit that monitors
walking and running and sells for $29 or the Zeo Personal Sleep Coach that records
brainwaves while the user is sleeping and sells for $399, the Fitbit combines both
functions. The firsttime Fitbit setup isn”t very easy for users, but once over that hurdle,
it’s relative easy to use.
Refer to Fitbit. The process by which the adoption of this innovative product spreads is
called the:
a. diffusion process
b. product life cycle
c. consumption process
d. viral process
e. two-stage process
Answer:
All promotions are designed to inform, persuade, or remind the target audience.
a. True
b. False
Answer:
June LaVista owns a health and fitness gym. After dividing her customers into four
segments based on income range, age, level of fitness, and other selected segmentation
descriptors, she wrote out a description of each segment’s size, expected growth,
frequency of exercise, and overall profit potential. Which step in segmenting a market
is LaVista engaged in?
a. Profiling and analyzing her market segments
b. Positioning her products to her market segments
c. Targeting promotions to her market segments
d. Differentiating her market segments
e. Concentrating her marketing mix on the most profitable marketing segments
Answer:
L.L. Bean charges all customers the same flat freight rate. It uses:
a. FOB origin pricing.
b. zone pricing.
c. freight absorption pricing.
d. basing-point pricing.
e. uniform delivered pricing.
Answer:
CollegeDecision
Juan is a senior in high school and is deciding which university to go to after he
graduates. He has received several pieces of mail from local universities with
information on scholarship opportunities because he has a good GPA and a high ACT
score. He and his parents have visited several schools and have talked to advisors
regarding his chosen major of marketing. Juan is thinking about going to the local
community college where all of his friends are planning to go, but his parents want him
to go to a more prestigious school because they think he will get a better education
there.
Refer to College Decision. Juan’s parents and friends would be classified as factors
influencing his decision.
a. cultural
b. social
c. individual
d. psychological
e. primary
Answer:
Johnson Publishing Company, the world’s largest African Americanowned publishing
company and home of Ebonymagazine, has forged an alliance with Dan River, Inc. to
create luxury bed and bath products for the newly developed Ebony Home brand. This
brand will use the strong relationship the publisher has with the African American
market to sell the brand. What form of demographic segmentation will be used to
market the Ebony Home brand?
a. Geographic
b. Income
c. Ethnic
d. Benefit
e. Lifestyle
Answer:
The ____ is the quantity of a product that will be sold in the market at various prices for
a specified period, and _____ is the quantity of a product that will be offered to the
market by suppliers at various prices for a specified period.
a. demand; inventory
b. demand; supply
c. supply; demand
d. inventory; demand
e. inventory; supply
Answer:
KitKat
The popular Kit Kat chocolate bar was created by Rowntree’s, a confectionary company
in the United Kingdom, in 1935. By the 1940s, Rowntree’s was exporting Kit Kats to
Australia, New Zealand, South Africa, and Canada. The brand further expanded in the
1970s when Rowntree created a new distribution factory in Germany to meet European
demand, and established agreements to distribute the brand in the USA and Japan,
through the Hershey and Fujiya companies respectively. In June 1988, Nestl acquired
Kit Kat through the purchase of Rowntree’s, giving Nestl global control over the
brandexcept in North America, where it is made under license by the Hershey
Company. Variants in the traditional chocolate bar began to appear in the mid-1990s
and have continued to develop ever since. Kit Kat Japan, in particular, has many unique
flavors such as mango-flavored, cucumber, and wasabi Kit Kats. Today, Nestl produces
Kit Kat bars in 21 countries and has expanded its marketplace in Japan, Russia, Turkey,
and South America, in addition to markets throughout Europe.
Refer to Kit Kat. The Kit Kat manufacturing facilities in Egypt, Ukraine, Bulgaria, and
18 different countries are only small parts of the Nestl organization. Nestl can be called
a(n):
a. domestic trader.
b. cultural trader.
c. multinational corporation.
d. export agent.
e. localized corporation.
Answer: