The BCG has given specific names and descriptions to the four resulting quadrants in
its growth-share matrix based on the amount of cash they generate for or require from
the organization. “Dogs” are SBUs that are classified as having
a. high market growth rates and high relative market shares.
b. low market growth rates but high relative market shares.
c. low market growth rates and low relative market shares.
d. high market growth rates but low relative market shares.
e. medium market growth rates and medium relative market shares.
Answer:
As a dimension of service quality, the willingness to help customers and provide prompt
service is referred to as __________.
a. reliability
b. responsiveness
c. competence
d. assurance
e. empathy
Answer:
Accelerated development in the retail life cycle is similar to which stage in the product
life cycle?
a. introduction
b. maturity
c. decline
d. growth
e. harvest
Answer:
One disadvantage of using the Internet as an advertising medium is
a. as a relatively new medium, it has attracted limited use.
b. it is difficult to translate messages that can be used in social media networks like
Facebook and Twitter.
c. the medium is new so standards for various formats are still evolving.
d. it often creates more traffic than a firm can actually handle.
e. pay-per-click search ads on Google are expensive and ineffective.
Answer:
Jane Westerlund owns a picture-framing shop, The Caplow Co. The average price she
receives for a picture she frames for a customer is $120. This price must cover her costs
for a typical framed picture, which consists of $5 for glass, $2 for matting, $13 for the
frame, and $30 for the labor involved. She must also cover monthly expenses of $1,000
for rent and insurance, $200 for heat and electricity, $500 for advertising, and $3,500
for her salary. Westerlund is considering buying an automatic matte-cutting machine in
order to reduce the number of hours of direct labor required to produce a framed
picture. In considering this purchase, she should recognize this purchase will
__________ Caplow’s variable cost and __________ Caplow’s fixed cost.
a. decrease; increase
b. decrease; decrease
c. increase; decrease
d. increase; increase
e. have no effect on; have no effect on
Answer:
Lever Europe, a division of Unilever, markets its Snuggle fabric softener in the United
States. But in 10 European countries, it uses seven brand names, including
Kuschelweich in German, Coccolino in Italy, and Mimosin in France. These products
also have different packages, different advertising programs, and occasionally different
formulas. From this information, we can assume that Lever Europe is a(n) __________
firm.
a. ethnocentric
b. multinational
c. transnational
d. meganational
e. international
Answer:
Seventy-one percent of consumers consider __________ to be the best way to evaluate
a new product. a. demonstrations
b. free samples
c. press releases
d. celebrity endorsements
e. product diffusion
Answer:
E-Marketplaces refer to
a. virtual or holographic purchasing marketspaces that allow manufacturers to estimate
demand based upon different changes in environmental forces.
b. websites that allow consumers to make direct purchases from a manufacturer rather
than through a traditional retail outlet.
c. online trading communities that bring together buyers and supplier organizations to
make possible the real time exchange of information, money, products, and services.
d. computer simulations that allow manufacturers to estimate how much inventory to
keep on hand based upon different purchasing scenarios.
e. a computer database cosponsored by the U.S. Department of Commerce and the
World Trade Organization (WTO) that houses all public access records for the purpose
of aiding American and global businesses.
Answer:
What are the two most common constraints in marketing problem solving?
a. limitations of personnel and office space
b. limitations on the time and money available
c. government regulations and rights to privacy
d. limitations on access to upper and middle management
e. limitations of the thinking and creativity of the firm’s advertising agency
Answer:
One advantage of using billboards as an advertising medium is
a. it is environmentally friendly.
b. it has universal appeal.
c. it is particularly suited to national campaigns.
d. it is especially suited for persuasive advertisements.
e. it has high visibility.
Answer:
Frequency marketing is a strategy that focuses on usage rate. In market segmentation
studies,
a. usage should be the last factor that is considered as a criterion for segmentation, since
the entire point of segmentation is to attract consumers who are not yet using your
product.
b. some measure of usage by, or sales obtained from, various segments is central to the
analysis.
c. usage rate should always be considered in tandem with geographic segmentation
factors to understand the “why” consumers behave as they do.
d. usage rate has far more value in consumer market segmentation than in
organizational market segmentation.
e. usage rate has far more value in organizational market segmentation than in
consumer market segmentation.
Answer:
A marketing manager must be able to put a market segmentation plan into effect. This
means being able to recognize the characteristics of potential buyers and __________
without encountering excessive costs.
a. eliminating potential non-buyers
b. identifying segmentation variables
c. assigning them to a segment
d. redirecting their purchase behaviors
e. ignoring any and all similarities
Answer:
A trademark refers to __________.
a. any word, device (design, sound, shape or color), or combination of these used to
distinguish a seller’s goods or services
b. the part of a brand that can be spoken
c. the part of a brand that is a symbol or design and cannot be vocalized
d. the commercial, legal name under which a company does business
e. the identification that a firm has legally registered its brand name or trade name so
the firm has its exclusive use, thereby preventing others from using it
Answer:
A buy class situation affects buying center tendencies in different ways. If there are
many people involved, the problem definition is uncertain, and the buying objective is
to find a good solution, the buy class situation is MOST LIKELY a
a. modified buy.
b. straight rebuy.
c. conditional rebuy.
d. new buy.
e. standard buy.
Answer:
Odd-even pricing refers to
a. setting prices one way for product lines and another way for individual brands.
b. setting prices of luxury items at even price points and setting the price of necessities
at odd price points.
c. setting prices a few dollars or cents under an odd number.
d. adding a fixed percentage to the cost of all items in a specific product class.
e. setting prices a few dollars or cents under an even number.
Answer:
Companies such as Avon, Fuller Brush, Mary Kay, and World Book are examples of
firms that use
a. interface marketing.
b. flex-marketing.
c. direct selling.
d. interactive selling.
e. responsive selling.
Answer:
Which marketing strategy does a firm use to sell a single product or service to multiple
market segments?
a. developing and producing another version of the product
b. manufacturing different products that appeal to different markets
c. developing separate promotional campaigns for each market
d. acquiring another firm that has additional products that would appeal to multiple
markets
e. issuing stock to fund additional research and development for new products
Answer:
The strategic business unit level
a. works most directly with the organization’s target customers.
b. directs the overall strategy for the organization.
c. is most likely to change substantially over time.
d. provides more end-user analysis in order to design more customer-directed products.
e. is the level at which managers set a more specific strategic direction for their
businesses to exploit value-creating opportunities.
Answer:
Exurbs are
a. statistical areas of at least 50,000 or more people.
b. remote suburbs.
c. statistical areas of at least 10,000 but less than 50,000 people.
d. statistical areas that contains a population of 2.5 million or more.
e. the combination of metropolitan statistical areas and micropolitan statistical areas.
Answer:
All of the following are geographic segmentation variables EXCEPT:
a. density
b. city size
c. region
d. VALS
e. statistical area
Answer:
With respect to promotion, which of the following strategies would most likely be used
for unsought products?
a. offering consumer and trade sales promotions
b. establishing the uniqueness and status of the brand
c. generating awareness
d. differentiating the brand from competitive brands
e. stressing price and availability in advertising
Answer:
Trice Jewelers is a high-end independent jeweler located in Milwaukee. It specializes in
custom jewelry and has been in business for decades. Which medium would be the best
for Trice to use to reach potential customers with colorful long-lasting images and
remind them that Trice is the source for all their gift-giving needs?
a. prime time national television
b. magazines targeted toward wealthy residents of Milwaukee
c. radio stations that target millennials
d. flyers sent to all the Milwaukee zip codes
e. Milwaukee regional newspapers
Answer:
Figure 1.
Figure 1. above shows the three types of special adjustments to list or quoted price. “A”
represents
a. demand-oriented price adjustments.
b. allowances.
c. geographical adjustments.
d. discounts.
e. customary pricing adjustments.
Answer:
One of the disadvantages associated with radio as an advertising medium is that it
a. has a long exposure time.
b. cannot target specific audiences.
c. has a perishable message.
d. cannot use humor, sound, and intimacy effectively.
e. has an unlimited amount of advertising time available.
Answer:
Capacity management refers to
a. integrating the service component of the marketing mix with efforts to influence
consumer demand.
b. when the service provider is available but there is no demand.
c. charging different prices during different times of the day or during different days of
the week to reflect variations in demand for the service.
d. the practice of changing prices for services in real time in response to supply and
demand conditions.
e. the operating cost per hour per employee or technology subtracted from the revenue
generated by each full-time employee equivalent.
Answer:
A buy class situation affects buying center tendencies in different ways. If there is one
person involved, the problem definition is well-defined, and the time required for a
decision is short, the buy class situation is a
a. new buy.
b. straight rebuy.
c. conditional rebuy.
d. modified rebuy.
e. standard buy.
Answer:
A government tax on goods or services entering a country is referred to as a
a. GATT tax.
b. quota.
c. tariff.
d. foreign excise tax.
e. subsidy.
Answer:
With respect to a product for which a promotional mix is being developed, risk
a. refers to the degree of service or support required after the sale.
b. refers to the technical sophistication of the product and hence the amount of
understanding required to use it.
c. in a product means there should be less emphasis on personal selling.
d. can be assessed in terms of financial, social, and physical aspects.
e. is irrelevant.
Answer:
The emergency room staff in Houston’s largest hospital is surprised and pleased when a
four-day Fourth of July weekend brings in few accident victims for treatment. They
know from experience that such public holidays usually have high rates of accidents.
For the hospital’s business office, the lower demand for the emergency room services
means
a. a break in the service continuum.
b. its services are no longer tangible.
c. its services can be separated from the staff.
d. the hospital has idle production capacity.
e. an opportunity for gap analysis.
Answer:
Which type of salesforce training is the most popular type of training?
a. individual instruction
b. on-the-job training
c. formal classes
d. seminars taught by sales trainers
e. computer-based training
Answer:
The term product class refers to __________.
a. the NAICS designation of an individual product or brand
b. the designation of an individual product based upon its form
c. a variation of a product within a product mix
d. the designation of a product based on whether it is a consumer product or business
product
e. the entire product category or industry
Answer:
Which of the following types of firms comprises an industrial market?
a. retailer
b. mining
c. wholesaler
d. state government
e. NASA
Answer:
Intangible items such as airline trips, financial advice, or telephone calls that an
organization provides to consumers are referred to as
a. production goods.
b. support products.
c. services.
d. goods.
e. benefits.
Answer:
The value to consumers that comes from having the offering available where consumers
need it constitutes __________ utility.
a. time
b. place
c. possession
d. market
e. form
Answer:
Retailers can reduce problems associated with selective retention by
a. hiring well-known celebrities to sponsor their products.
b. adding more end-aisle and other point-of-purchase displays throughout the store.
c. providing brochures for consumers to take home.
d. adopting advertising campaigns that use bright colors and/or “Top 40” background
music.
e. offering extended service warranties.
Answer: