BUSMT 854 Quiz 1

Type

Quiz

Book Title

A Preface to Marketing Management 14th Edition

ISBN 13

978-0077861063

October 29, 2015

Which of the following provides quantitative standards against which the performance

of individual sales representatives or other marketing units can be measured?

A. Sales strategies

B. Sales calls

C. Sales quotas

D. Sales forecasts

Answer:

In the early 1990s, Dean & Summers Inc. marketed three brands of car fresheners,

Coral, White Springs, and Autumn Breeze. The car freshener industry is typically

described as a low-growth industry. In 1993, Dean & Summers spent $5.1 million to

advertise Coral and was rewarded with sales of over $112 million. In the same year, it

spent nearly $5 million marketing White Springs, but the car freshener had

disappointing sales of less than $23 million. Autumn Breeze, with hardly any promotion

at all, had $1.2 million in sales. According to the BCG Portfolio Model, which of the

following statements about these three products best describes them?

A. Coral is a star, White Springs is a cash cow, and Autumn Breeze is a dog.

B. Coral is a cash cow while White Springs and Autumn Breeze are both question

marks.

C. Coral and White Springs are cash cows and Autumn Breeze is a dog.

D. Coral is a cash cow while White Springs and Autumn Breeze are both dogs.

The BCG is based on the assumption that profitability and cash flow will be closely

related to sales volume. Strategic business units (SBUs) functioning in a low-growth

market are either cash cows or dogs. Coral is a cash cow since it has a high share of the

market while White Springs and Autumn Breeze are dogs since they have a low share

of the market.

Answer:

According to the VALSâ„¢ framework, consumers who are driven by a desire for social

or physical activity, variety, and risk taking, and are motivated primarily by

self-expression can be best classified as _____.

A. Believers

B. Makers

C. Thinkers

D. Strivers

Answer:

A(n) _____ is an estimate of how much of a company's output, either in dollars or in

units, can be sold during a specified future period under a proposed marketing plan and

under an assumed set of economic conditions.

A. sales forecast

B. returns estimate

C. leverage ratio

D. output assumption

Answer:

When using a cost leadership strategy, a firm is most likely to offer:

A. a standard, no-frills product.

B. a highly-differentiated product.

C. a prestige product.

D. an expensive product of superior design and quality.

Answer:

Exclusivez, a leading jeweler, offers a pair of diamond earrings for only $2000, a price

that is 40 percent lower than that of its competitors. Exclusivez aims to use this strategy

to drive its competitors out of business and become the market leader in diamond

jewelry. This is an example of _____.

A. price discrimination

B. price fixing

C. predatory pricing

D. deceptive pricing

Answer:

Elaine decided to sign up for a particular instructor's violin class based on his reputation

of being an excellent teacher, who guaranteed that his students would learn to play the

violin in the three-month course he offered. Which of the following service qualities are

represented in this scenario?

A. Assurance

B. Intangibility

C. Sympathy

D. Empathy

Answer:

Cogniti Inc. manufactures high-end designer sports shoes. The company increased the

price of its most popular brand of shoes, Sportsy, by 10 percent, and the demand for

these shoes went up by 50%. Estimate the price elasticity for Sportsy.

A. 5

B. 10

C. 500

D. 50

Answer:

The country of Arcadia has clusters of associated businesses and suppliers which

include individual dye and textile manufacturing firms, chemical plants, and leather

manufacturing companies, most of which are well-reputed and internationally

competitive. This has made Arcadia a major force in the global economic market.

Which of the following factors of Michael Porter's diamond model is responsible for

giving Arcadia an edge over its competitors?

A. Related and supporting industries

B. Demand conditions

C. Company strategy, structure and rivalry

D. Factor conditions

Answer:

Patches Inc. is a retail unit that sells office supplies and stationery to both industrial and

commercial establishments. It purchases the supplies and stationery at cheaper,

subsidized rates from local manufacturers. This implies that Patches is an example of

a(n) _____.

A. marketing intermediary

B. organizational producer

C. government subsidy

D. independent buyer

Answer:

Charging different prices during different times or days in order to stimulate demand

during slow periods is called _____.

A. upscale pricing

B. off-peak pricing

C. every-day-low pricing

D. odd pricing

Answer:

Among the distribution costs, storage-space charges are generally considered:

A. packaging costs

B. costs of lost business

C. order processing costs

D. inventory carrying costs

Answer:

Which of the following is a reason why new products have failed once they reach the

marketplace?

A. Anticipated reactions from competitors

B. Competitive point of difference

C. Improper channels of distribution selected

D. Extensive use of advertisements to position brand differences

Answer:

Which of the following is an example of a client relationship?

A. Leasor-leasee

B. Telecaller-consumer

C. Salesperson-customer

D. Broker-investor

Answer:

A product that is viewed in terms of the essential benefits that a buyer expects to

receive from it is called a(n) _____.

A. tangible product

B. generic product

C. intangible product

D. meta product

Answer:

Hilton Brews is a company producing instant mixes for all kinds of beverages. It

notices that the market for tea has risen due to its potential health benefits. Therefore,

Hilton Brews introduces a new line of organically grown and processed teas like green

tea or tea with various herb extracts and additional antioxidants. Which of the following

organizational growth strategies has been used by Hilton Brews?

A. Product development

B. Diversification

C. Market penetration

D. Market development

Answer:

Which of the following is true of the rate-of-return approach to pricing?

A. Rate-of-return pricing is commonly used by manufacturers.

B. Rate-of-return pricing is a psychological pricing strategy.

C. Rate-of-return pricing does not involve circular reasoning.

D. Rate-of-return pricing places maximum emphasis on estimating sales volume.

Answer:

Service firms often fail to recognize the need for change due to the fact that they:

A. always discount innovation.

B. face strong competition.

C. are highly innovative.

D. are often not faced with obsolescence.

Answer:

Which of the following is a difference between convenience goods and shopping

goods?

A. Shopping goods generally require broadcast promotion, while convenience goods

generally require more targeted promotion.

B. Convenience goods are used to run a business, while shopping goods are used to

produce other products.

C. Convenience goods are purchased frequently with minimum effort, while shopping

goods are purchased after spending a considerable amount of time and energy.

D. Shopping goods generally require longer channels of distribution than convenience

goods.

Answer:

For which of the following purchases would a consumer most likely engage in

extensive decision making?

A. Purchase of a pair of pantyhose at a hotel gift shop

B. Purchase of a cup of coffee from Starbucks

C. Purchase of a pack of cat food

D. Purchase of a new car

Answer:

A fad can be best described as a(n):

A. accepted and popular product that goes through repetitive cycles of popularity.

B. product that has a lengthy period of popularity which gives competitors the chance to

capitalize on the product.

C. product that experiences an intense but brief period of popularity.

D. specialty product that has retained its popularity for a long time.

Answer:

Leverage Inc. and its competitor, Allen Motors Co., were charged for conspiring to keep

the end-user price for hatchback cars artificially high. In other words, the two

automobile manufacturing companies were charged for:

A. price discrimination.

B. price fixing.

C. predatory pricing.

D. deceptive pricing.

Answer:

Which of the following is true of service products?

A. They come into existence at the same time they are bought and consumed.

B. They generally do not involve customer participation in a significant way.

C. They are composed of tangible elements that are separable.

D. They tend to have different titles and ownership transfers.

Answer:

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