Westin Hotels, Inc. has an objective of achieving a 25 percent return from its overall
sales. This is an example of a
pricing objective.
a. market share
b. cash flow
c. return on investment
d. profit
e. status quo
In the context of the BCG matrix, dogs refer to products that have a dominant share of
the market but low prospects for growth and typically generate more cash than is
required to maintain market share.
a. True
b. False
TimeWarner Cable uses a segmentation strategy for its cable TV packages based on
market characteristics such as age, gender, or income. Which of the following
segmentation variables is being implemented by this ?
a. Demographic variable
b. Geographic variable
c. Psychographic variable
d. Product-related variable
e. Education variable
The production manager of an engineering firm went out and bought a metal cutting
machine. The metal cutting machine can best be classified as a(n)_____ .
a. raw material
b. processed component
c. component part
d. service
e. accessory equipment
Scenario 8.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in
1964. Now, over a billion KFC chicken dinners are sold annually at more than 80
countries and territories around the world. KFC has established its own processing
plants in these countries to ensure the quality of its chicken and other food items. In the
U.S., the menu at KFC is usually the same in all restaurants, with only a very few
additional items available in different regions. However, when KFC first franchised into
Asian countries, it added many unusual local delicacies to the menu, such as fried
octopus and squid. Additionally, the franchised stores in Asian countries display cooked
food in “plates” near windows at the front of the store. This is a tradition for many
restaurants in these countries to offer the customer passing by a preliminary view of
their product.The practice of offering fried octopus and squid at Asian KFC’s is best
described as:
a. a strategy of standardization.
b. a strategy of globalization.
c. a strategy of customization.
d. a strategy to gain competitive advantage.
e. internationalizing the franchise.
A run-out approach of product deletion:
a. lets the product decline without changing the product strategy.
b. is an immediate-drop decision.
c. exploits any strengths left in the product.
d. raises the price of the product continually to secure as much profit as possible before
the product is priced out of the market.
e. occurs when production cannot keep pace with demand because of material
shortages.
By using Johnson Wholesale Co. for its distribution needs, Apex Production has a
distinct competitive advantage because the services performed by Johnson allow Apex
to:
a. provide quality merchandise to consumers.
b. focus on increasing production capacity.
c. focus on increasing working capital.
d. reduce manufacturing costs to retailers.
e. keep track of market developments.
A special form of licensing in which one company grants another company the right to
market its product in accordance with its standards in exchange for a financial
commitment is known as .
a. a joint venture
b. contract manufacturing
c. direct licensing
d. franchising
e. a strategic alliance
The brand name “Minute Rice” would be more difficult to protect legally than “Exxon.”
a. True
b. False
The pricing of Clinique makeup, considerably higher than brands such as Cover Girl,
Revlon, and Maybelline, is most likely used to communicate_________.
a. market share
b. product quality
c. status quo
d. profitability
e. cash flow
Individual-sized boxes and packages that do not require refrigeration are both benefits
of the_____function of packaging.
a. protection
b. reusability
c. cost effectiveness
d. safety
e. convenience
The concept of product quality is the same for different consumer groups and remains
constant across consumer and business markets.
a. True
b. False
Quality modification of an existing product aims at changing the product’s safety,
convenience, or versatility.
a. True
b. False
Industrial demand derives from consumer demand.
a. True
b. False
The test marketing phase of the new-product development process:
a. is an extension of the product development phase.
b. should be conducted immediately after business analysis.
c. eliminates the risk of product failure.
d. is a sample launching of the entire marketing mix.
e. prevents competitors from copying the product.
are items offered free or at minimal cost as a bonus for purchasing a product.
a. Rebates
b. Premiums
c. Samples
d. Merchandise allowances
e. Coupons