On Subway napkins, nutritional information for their 6inch subs is compared to
McDonald’s Big Mac and Burger King Whopper. This is an example of competitive
advertising.
a. True
b. False
Answer:
While many green products have practical benefits, none of them are readily apparent
to consumers.
a. True
b. False
Answer:
Sav-MoreSupermarkets
Observers of the supermarket industry see no letup in the use of checkoutcounter”based
target marketing. Sav More supermarkets have installed an electronic marketing system
in their stores. The system allows the stores to do more direct mail promotions by
combining the current SavMore’s check cashing cards with the new SavMore’s Bonus
Club frequent shopper cards. The new system uses barcode scanners and magnetic
cards issued to shoppers to track all purchases. As with most customer databases,
demographic information is gathered for subsequent offers to frequent shopper club
members, and psychographic information is tracked whenever customers use the
magnetic strip cards to make purchases. Generally, marketing to these consumers
achieves better results than freestanding insert (FSI) coupons.
Refer to SavMore Supermarkets. Al Edisto, SavMore’s frozen food manager, decided
that the best way to determine what is causing the drop in orange juice sales was to
conduct a survey among shoppers in the store’s frozen food section. Edisto collected
data.
a. single-source
b. secondary
c. representational
d. primary
e. dichotomous
Answer:
Without the Internet, it would be impossible to conduct simultaneous product
development from different parts of the world.
a. True
b. False
Answer:
Kellogg’s is offering free DVDs to consumers who collect five official Collection
certificates from the back panels of specially marked packages of Kellogg’s cereals and
then mail them with the official order form. Within 90 days, these consumers will
receive the movie of their choice. A(n) ______ will occur when a movie fan mails in his
or her certificates for a movie.
certificates for a movie.
a. synergy
b. sublimation
c. exchange
d. entropy
e. reciprocity
Answer:
Which of the following products would most likely require the purchaser to use only an
internal information search?
a. A doctor for a recently detected illness
b. A new washer and dryer
c. A formal dance
d. A favorite restaurant you love to patronize regularly
e. Choosing a movie to see at the theater
Answer:
____ are intermediaries who facilitate the sales of a product from producer to end user
by representing retailers, wholesalers, or manufacturers and providing little input as to
the terms of the sale.
a. Marketing facilitators
b. Channel cooperatives
c. Agents and brokers
d. Merchant wholesalers
e. Channel functionaries
Answer:
When Procter & Gamble wanted to enter the hair-care market, it purchased Wella, a
leading German company specializing in hair-care products. What new product
category does this acquisition represent for P&G?
a. Repositioning strategy
b. New product line
c. Addition to existing product line
d. Discontinuous innovation
e. Revision of existing products
Answer:
For years, fryer chickens sold in grocery stores were perceived to be a rather generic
product””one brand of chicken was much like another. Then Frank Perdue began an
advertising campaign to tell consumers that his brand of chicken was more tender,
therefore a better choice. Perdue brought ______ to the marketing of fryer chickens.
a. perceptual mapping
b. product differentiation
c. psychographic targeting
d. market innovation
e. cannibalization
Answer:
Volvo has a Web site that caters to car enthusiasts who might want to see concept cars
evolve into real-life products. Volvo would likely have used data mining to locate
people who were car enthusiasts and innovators.
a. True
b. False
Answer:
There are two types of learning: concrete and abstract.
a. True
b. False
Answer:
Which of the following categories in the portfolio matrix is a market leader and
growing fast?
a. Star
b. Meteor
c. Cash cow
d. Shiner
e. Top dog
Answer:
Canesta Company has developed a virtual keyboard out of light to be used with cell
phones and PDAs. The product beams an image of a keyboard on a desk, allowing the
user to type on the image. The words are picked up by the user’s digital device. When
introduced to the market, the device will sell for less than $50. If, in choosing
its channel, Canesta is most concerned about its lack of financial, managerial, and
marketing resources to support the product’s introduction, then its choice of channels
will largely be influenced by:
a. factors of ownership.
b. market factors.
c. producer factors.
d. product factors.
e. internal environmental characteristics.
Answer:
Which of the following statements about the characteristics of the elements in the
promotional mix is true?
a. Control over message content is greatest when public relations is used.
b. A large audience is best reached with personal selling.
c. The sponsor or company is identified in advertising.
d. The mode of communication for sales promotion is usually direct and personal.
e. The message flow with advertising is two-way.
Answer:
Which of the following statements does NOT describe the business market?
a. Business buying decisions are usually made independently by a purchasing agent,
while consumer buying decisions are made jointly.
b. Business customers tend to be more geographically concentrated, and customers in
consumer markets tend to be more geographically dispersed.
c. The channel of distribution is more often direct for business markets than for
consumer markets.
d. Purchasing by businesses is a more formal process than it is in consumer markets.
e. Business marketers tend to have far fewer customers than consumer marketers.
Answer:
Frequent-flyer programs are an example of financial incentives to customers in
exchange for their continuing patronage. After flying a certain number of miles or
flying a specified number of times, the frequent-flyer program participant earns a free
flight or some other award such as free lodging. Airlines that use frequent-flyer
programs are practicing:
a. commitment selling
b. transaction marketing
c. transformational marketing
d. marketing engineering
e. relationship marketing
Answer:
Which of the following statements about sales promotions is true?
a. Public relations cannot effectively be used with sales promotions.
b. Sales promotion is a type of direct marketing.
c. Marketers view sales promotions as more effective when they are created as long-run
stimulation tools.
d. Trade shows, coupons, premiums, and vacation giveaways are types of sales
promotions.
e. All sales promotions must be aimed outside the organization.
Answer:
When a product name becomes generic:
a. the firm must use black-and-white packaging
b. competitors are prohibited by law from using the trademark
c. the price will have to drop to appeal to lower-income consumers
d. the product name is no longer recognized as the exclusive property of one firm
e. a firm can reapply for exclusive trademark protection at the U.S. Patent Office
Answer:
WataniyaMobile
Wataniya Mobile is offering cellular service in the Palestinian territories. It is only the
second cell phone carrier in the region and is significant because it is owned by foreign
companies and investors like the Qatari royal family and the Palestine Investment Fund.
The new service is aimed at increasing cell phone penetration, which is only 35 percent,
in this economically challenged area. It has not been easy for Wataniya, though. It took
two years to gain the required license from Israel, which controls the Palestinian
territories’ airwaves and bandwidth required for the service. Even though Wataniya is
allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which
is not enough for it to offer 3G mobile services that enable Web browsing and e-mail.
Refer to Wataniya Mobile. Israel’s control of licensing and the limitation on the amount
of bandwidth allotted to Wataniya Mobile is part of which environment?
a. Cultural
b. Economic
c. Political and legal
d. Demographic
e. Resource
Answer:
The focus of a production-oriented firm is on what it can make or do best.
a. True
b. False
Answer:
Alex purchased a battery-operated drill, and the first time he used the drill, the battery
pack overheated and exploded. After Alex’s trip to the emergency room, it was
determined that the explosion was due to a problem with how the drill was
manufactured. Alex would like to lodge a complaint about the poor quality of the drill’s
construction. To which federal agency should he complain?
a. Labor Department
b. Food and Drug Administration
c. Federal Trade Commission
d. Department of Trade
e. Consumer Product Safety Commission
Answer:
AMC Theaters offers customers a package that includes two movie tickets, two small
drinks, and one small popcorn all priced together at $29.99. this pricing technique is
called:
a. price lining.
b. two-part pricing.
c. horizontal pricing.
d. price bundling.
e. bait pricing.
Answer:
The AIDA concept can be used to explain how all promotions influence purchase
decisions.
a. True
b. False
Answer:
The American Plastics Council wants to stimulate more consumer demand for products
that are packaged in plastic. The ads will explain how plastics protect families from
food spoilage and contamination. The ads will also describe how tamper-evident plastic
seals provide an extra measure of product safety assurance. By trying to change
customers’ perception of plastic packaging, the council is using _____ promotion.
a. reminder
b. persuasive
c. declarative
d. diffusive
e. mass
Answer:
Greta, the owner of House Mouse Cleaning Services, must be physically present when
she cleans a house or office. The need for her presence as the service is performed is an
example of the intangibility of services.
a. True
b. False
Answer:
Environmental sustainability is an important component of the sustainability
philosophy.
a. True
b. False
Answer:
The advertising response function is a phenomenon in which spending for advertising
and sales promotion increases sales or market share up to a certain level but then
produces diminishing results.
a. True
b. False
Answer:
The Canadian magazine industry accused U.S. magazine publishers of ____ , or selling
the magazines in Canada at a lower price than in the United States.
a. dumping
b. offloading
c. boycotting
d. repatriating
e. crossdocking
Answer:
The goals of the manufacturing flow management process are centered on generating,
filing, delivering, and providing on-the-spot service for customer orders.
a. True
b. False
Answer:
The SBU acronym refers to:
a. stock in business units
b. strategic business unit
c. standard business utilization
d. strategic barter units
e. samples by units
Answer:
Amtrak
Amtrak is taking the gloves off in advertisements and belittling its major competition,
which is airline shuttles. Amtrak’s new name for its Metroliner is The Smart Shuttle.
Gone are ads that were inwardly directed and sold the Metroliner on its leisurely pace.
In their place are ads showing rapid shots of the sleek train and business executives
conducting nononsense meetings “eyeballtoeyeball.” The campaign, which includes
television, radio, print, billboards, and posters in commuter railroad cars, targets
business travelers, who, Amtrak says, incorrectly believes the train takes far longer than
the airplane to travel between two cities. One television spot opens with a shot of
airplanes stacked up in a tarmac traffic jam. Another shows a business traveler
lumbering into the airport during a snowstorm. The announcer says, “Schedule a
meeting. Take the shuttle. Then cross your fingers.” The poor soul looks up at the
departure board and sees a row of “Canceled” signs. The announcer continues,
“Schedule a meeting. Take the Metroliner. Then cross your legs.”
Refer to Amtrak. The plan to optimally utilize television, radio, print, and out-of-home
vehicles to target business travelers is called a:
a. promotional strategy.
b. marketing mix.
c. promotion goal.
d. selling plan.
e. publicity plan.
Answer:
A(n)____ brand is one owned by the wholesaler or retailer.
a. intermediate
b. private
c. generic
d. corporate
e. primary
Answer:
Billboard advertisements often have to compete for a driver’s attention with traffic,
passengers, radio, or other billboards. Billboard advertising would be described as:
a. lacking any geographic selectivity.
b. the most flexible advertising medium.
c. having a high noise level.
d. having a low noise level.
e. being a great channel for informative ads.
Answer:
The maker of Purell hand sanitizer tested consumers’ reactions to its Purell Sanitizing
Wipes by getting consumers to look through a newspaper with grocery store ads, make
out a grocery list, and then ‘shop” in a mock store filled with real products, including
the new product. This is an example of a(n):
a. adoption-rate test
b. simulated (laboratory) market test
c. concept test
d. use test
e. juried consumer test
Answer:
____ is (are) composed of bundles of interconnected activities that stretch across firms
in the supply chain.
a. ABC segmentation strategies
b. Activity-based costing
c. Customer relationship management
d. Business processes
e. Customer service activities
Answer: