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Which of the following statements about comparative advertising is true?
a. Comparative advertising is highly effective in Arabic countries.
b. The FCC is the only federal agency that has any regulatory power over comparative
advertising.
c. Comparative advertising is often used for products experiencing strong growth.
d. Comparative advertising is regulated by the FTC in the United States.
e. Comparative advertising is illegal in the United States.
Answer:
After managers understand both the legal and the marketing consequences of price
strategies, they should set a __ price""the general level at which a company expects to
sell a good or service.
a. functional
b. zone
c. demand
d. leader
e. base
Answer:
Because of the widespread adoption of Android-based phones and other smartphones,
millions of applications have been developed for the mobile market.
a. True
b. False
Answer:
A market penetration strategy entails the creation of new products for current
customers.
a. True
b. False
Answer:
Facebook can best be characterized as a media sharing site.
a. True
b. False
Answer:
The Hallmark Company was inspired by the popularity of Jan Karon's bestselling
novels about Mitford, a fictional town in the mountains of North Carolina, to develop a
new line of products for Hallmark Gold Crown Stores nationwide. Hallmark created
hundreds of Mitfordinspired products that authentically bring "the little town with the
big heart" into tangible reality. The products include greeting cards, partyware and gift
wrap, mugs, and puzzles for Hallmark's existing customers. Hallmark used a strategy.
a. market development
b. market penetration
c. product penetration
d. product development
e. diversification
Answer:
David and Kathy like to take their young son, Chaz, to Moe's for lunch after church on
Sundays. While they like to eat at Moe's at any time, Sunday is particularly good
because it's "kidseatfree" day at Moe's southwestern grill. Until Moe's began the
reduced pricing program, Sundays were very slow. Now it is one of the busiest days of
the week. This price reduction was a way to contend with the service characteristic of:
a. variability.
b. perishability.
c. intangibility.
d. inseparability.
e. simultaneous production and consumption.
Answer:
FederalAviationAdministration
The Federal Aviation Administration (FAA) has been struggling for several years with
antiquated systems, and all it takes is a single failure on one piece of the system to shut
down the entire air-traffic control system for several hours, resulting in significant
snarls at major airports. The most recent failure occurred in the FAA's core
telecommunications network, called the Federal Telecommunications Infrastructure
(FTI), which is managed by Harris Corporation. Marc Raimondi, a spokesperson for
Harris, said, "The FTI system has proven to be one of the most reliable and secure
communications networks operating within the civilian government." Snafus like this
have been happening with alarming frequency, prompting Congress to demand the FAA
and its contractors to do more to prevent these malfunctions. The problem is that the
FAA has been using a patchwork approach by updating old systems with modern
hardware and software instead of ordering a complete overhaul of the system. The
FAA's next generation of modernization will rely on satellite-based networks instead of
phone lines and data cables. The FAA is waiting for White House approval on whether
it will have the funds to take this next step.
Refer to Federal Aviation Administration. The FAA is what type of business buyer?
a. Producer
b. Reseller
c. Government
d. Institution
e. Unbiased
Answer:
Levi Strauss recently introduced its new Totally Slimming jeans. The idea for the jeans
came from a group session conducted last August in which a group of moms made it
clear they were tired of low-rise styles. Instead, they wanted jeans that were
comfortable while covering up problem areas and that showed off their figures. Levi's
used this data as the basis for designing this new line of jeans.
a. primary
b. secondary
c. dichotomous
d. convenience
e. ethnographic
Answer:
____ are foreign sales agents-distributors who live in a foreign country and represent a
domestic company in sales situations. They perform the same functions as domestic
manufacturers' agents who help with financing and shipping.
a. Export agents
b. Export brokers
c. Import broker
d. Buyers for export
e. Licensing agents
Answer:
Prices always steadily decline for a product in the decline stage of the product life
cycle.
a. True
b. False
Answer:
In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker,
agreed to a merger with a U.S.based wine distribution company. According to Ansoff's
strategic opportunity matrix, BRL would be implementing a strategy.
a. diversification
b. market development
c. product development
d. divestment
e. product penetration
Answer:
DeFeet International
DeFeet International started as a cyclist sock company. The founder, Shane Cooper, said
that the existing socks for cyclists were just not of great quality, so he made socks for
his cycling team by knitting them inside out. The socks were of special materials aimed
at giving the cyclist the most comfortable fit. These socks were not the traditional white
socks but were bright, bold, and flashy colored socks with cool graphics. These
high-tech socks were priced around $10 a pair. Their Web site says "DeFeet Is Made for
Driven Soles." Soon, cycling elites like Lance Armstrong and Greg LeMond were
sporting the DeFeet brand. The company branched into running, hiking, and snow gear.
Products include socks, armskins, calfskins, boxer briefs, gloves, and shirts for the
serious athlete. DeFeet has a custom department where socks, armskins, and gloves can
be personalized with any motif, including sponsor types of logos like Michelin, Pabst
Blue Ribbon, or BP. Even kids can enjoy DeFeet's highquality socks. DeFeet's products
can be found in retailers across the world""in more than 20 countries like Israel,
Australia, Belgium, and the United States. More than two dozen online retailers also
carry DeFeet products.
Refer to DeFeet International. If you were to define DeFeet's mission, which would be
most appropriate?
a. DeFeet makes socks.
b. DeFeet makes clothes for athletes.
c. DeFeet creates high-tech products for the serious athlete.
d. DeFeet provides the highest-quality apparel for customers who demand the best.
e. DeFeet covers the world.
Answer:
Any firm that purchases goods and services to make a profit by using them to produce
other goods is part of the producer segment of the business market.
a. True
b. False
Answer:
Purchasing your clothes online can be fun, allowing you to shop from companies
around the world without leaving your home. You can also often get great prices on the
items you purchase. However, you could get stuck with a product that doesn"t look
nearly as nice in reality as it does on your computer screen. Lands' End takes this
concern away with its "Guaranteed Period" promise. Lands' End will happily return
your purchase price on any item you purchase for any reason. If Lands' End ever failed
to follow through with this promise, it would represent a gap between:
a. what management thinks customers want and the quality specifications that
management develops to provide the service.
b. what the company tells the customer it provides and what is actually provided.
c. service quality specifications and employee training.
d. what customers want and what management thinks customers want.
e. none of these.
Answer:
Which ethnic group prefers products from their native country?
a. Hispanic Americans
b. African Americans
c. Asian Americans
d. South Americans
e. Cuban Americans
Answer:
TheRitzyCanine
The Ritzy Canine Carriage House looks like several other Manhattan boutique hotels.
The lobby features a crystal chandelier, brocade-patterned wallpaper, gold-framed
mirrors, and antique chairs. Room service and salon service are available as well as
exercise facilities. There is also a masseuse on staff. The Ritzy Canine is a high-end
doggy "hotel" and 'spa" where dogs are the only guests, and they are lavishly cared for.
The $175anight Windsor Suite even has a DVD player. Without such extras, a one-day
visit will cost $40 to $50, depending on the size of the dog.
Refer to The Ritzy Canine. Which category of service processing is used at The Ritzy
Canine?
a. Possession
b. Mental stimulus
c. Physical stimulus
d. Information
e. People
Answer:
Which of the following statements about Generation Y is true?
a. Its members were born between 1965 and 1978.
b. Members are tech-savvy and expect brands to be on social media.
c. The members of Generation Y are pressed for time and spend more on personal
services than any other age group.
d. Members of Generation Y are the first generation of latchkey kids.
e. Generation Y is the smallest cohort.
Answer:
The level of relationship marketing that is least likely to be effective in the long term
because its advantage is easily imitated by other firms is based on:
a. personal communications
b. social bonds
c. service delivery heuristics
d. pricing incentives
e. structural bonds
Answer:
GoingtotheDogs
Demand for pet services is greatly increasing across the United States. In fact,
Americans will spend nearly $44 billion dollars on their pets this year. Many American
dog owners are seeking out "doggy day cares" that are more like a resort or spa than an
ordinary kennel for their canine companion. Day care services for dogs now include toy
rooms, outside play areas, doggie massages, treadmills, swimming pools, and cushy
beds for nap time. Pet owners can watch their pets via a webcam, and some doggy day
cares have a phone where owners can talk to their dogs when they feel their pets need to
hear their voices. Rates vary from $20 to $45 a day per pet, depending on the amenities
that the pet owner chooses.
Refer to Going to the Dogs. The doggy day care center is more like a dog resort than a
dog kennel. A dog day care represents what type of new product?
a. Competitive innovation
b. Discontinuous innovation
c. New product line
d. Revision of existing product
e. Higher-priced product
Answer:
Hotels will often offer deep discounts on weekends and during the off-season; for the
same reason, airlines will adopt a similar pricing strategy during off-peak hours. These
services cannot be stored, warehoused, or inventoried because they are perishable.
a. True
b. False
Answer:
BaseballDirt
Dirt is not dirt when it comes to baseball fields. About two-thirds of the pro baseball
fields get their dirt from a dirt farm in New Jersey called Partac Peat. The company
markets a secret mix for the infield (resilient), the warning track (extra crunchy), and
the pitcher's mounds (firm). Mounds come in red, brown, orange, and gray colors.
Roger Bossard, the White Sox head groundskeeper, scouted nationwide for dirt before
settling on the mix provided by Partac Peat. (He uses sand under the grassy areas of the
playing field.)
Refer to Baseball Dirt. An increase in the price of Partac Peat's dirt will not affect the
demand for the product because many groundskeepers believe there is no substitute for
the product. Thus, demand for Partac Peat's secret mix is:
a. inelastic.
b. intangible.
c. heterogeneous.
d. synergistic.
e. elastic.
Answer:
____ products are searched for extensively, and substitutes are not acceptable. These
products may be quite expensive, and often distribution is limited.
a. Exclusive shopping
b. Homogeneous convenience
c. Branded shopping
d. Specialty
e. Heterogeneous convenience
Answer:
Military Spouses is the only publication in the world that targets readers who are
"married to the military." Its content reflects the unique set of challenges, hardships, and
rewards to those whose spouses are in the military. The marital status that has been used
to distinguish the market for this magazine is an example of a(n):
a. market base.
b. selector base.
c. identifier.
d. segmentation base.
e. discriminator base.
Answer:
At what level of the pyramid of corporate social responsibility will firms do what is
right, just, and fair?
a. Economic
b. Philanthropic
c. Legal
d. Ethical
e. Moral
Answer:
A 16-ounce bottle of Prairie Herb vinegar sells for $4.95, and a 16-ounce bottle of
Heinz vinegar costs $1.05. Prairie Herb vinegar is new to the market, perceived to be of
higher quality, and provides a unique flavor to foods even though it is used in the same
way as Heinz vinegar. Prairie Herb vinegar is most likely using a ____policy.
a. penetration pricing
b. status quo pricing
c. price skimming
d. bundling cost pricing
e. geodemographic pricing
Answer:
Which country is the world's largest exporter of services?
a. Germany
b. Japan
c. The United States
d. China
e. Canada
Answer:
Because marketers do not control consumers' comments on social media sites such as
Twitter and Facebook:
a. there is a chance that comments and postings will be negative.
b. any comments consumers leave are virtually useless to marketers.
c. filtered feedback channel has been created.
d. most consumers do not trust the comments they read there.
e. any feedback marketers receive there will be impersonal.
Answer:
Determining costs can be extremely difficult for a service provider who has adopted
a(n) _____ pricing objective and may limit the usefulness of the objective.
a. market-share-oriented
b. operations-oriented
c. revenue-oriented
d. patronage-oriented
e. break-even
Answer:
One benefit of test marketing is that the marketing activity is shielded from
competitors.
a. True
b. False
Answer:
