DigitalCookware
Digital Cookware has developed a new kind of skillet that should make cooking easier
for many non-chefs. The skillet has a display on its handle that beeps to alert the cook
when the pan’s target temperature is reached. The skillet, with the aid of an
accompanying cookbook, will take much of the guesswork out of cooking. Digital
Cookware is a small company, and it has invested considerable money in developing
this new technology, which it eventually hopes to use in an entire line of pots and pans.
It has run some small ads for the new skillet in cooking magazines and has been
featured on some morning talk shows. It needs a quick infusion of cash to maintain its
current operational level and to develop the rest of the cookware line. Digital Cookware
is considering some kind of sales promotion.
Refer to Digital Cookware. Why might rebates be a really good sales promotion for
Digital Cookware to use?
a. They are useful in building long-term relationships with customers.
b. They can create a great amount of publicity.
c. They create mutually beneficial relationships between the manufacturer and its
customers.
d. They are good at enticing purchases, but most rebates are not redeemed.
e. They can be piggybacked with similar products.
Answer:
Some market-oriented firms give employees expanded authority to solve customer
problems on the spot. This is known as:
a. training
b. deregulation
c. empowerment
d. commissioning
e. mediating
Answer:
Which of the following statements about handling objections is true?
a. A professional salesperson should not anticipate objections.
b. A salesperson should view objections as requests for more information.
c. Objections should not be used to close the sale.
d. A good salesperson dreads having to handle sales objections.
e. Objectives can only be handled when they arise, not anticipated beforehand.
Answer:
The ____ is an intermediary in the global market who assumes all risks and sells
globally internationally for its own account. The domestic manufacturer usually treats it
like a domestic customer.
a. buyer for export
b. export agent
c. joint venturer
d. contract manufacturer
e. market group
Answer:
In the United States, price fixing is only illegal in some instances.
a. True
b. False
Answer:
____ products are purchased with little shopping effort. These products typically are
purchased regularly, usually with little planning, and require wide distribution.
a. Convenience
b. Specialty
c. Branded shopping
d. Unbranded shopping
e. Generic
Answer:
The way a consumer goes about addressing a need is called a:
a. need
b. tactic
c. stimulus
d. want
e. desire
Answer:
Kroger is the second-largest supermarket chain in the United States. Which of the
following is the most likely reason why Kroger supermarkets sell all types of foodstuffs
as well as nonfood products including a wide range of eyewear and accessories?
a. Consumer demand for one-stop shopping often leads to scrambled merchandising. b.
The fulfillment of the wheel of retailing hypothesis
c. Inflationary economic climate
d. Repositioning as a discounter
e. Growth of convenience merchandising
Answer:
Business buyers use a variety of criteria to evaluate alternative products and suppliers.
Name and define specific aspects of the three most important criteria.
Answer:
DigitalCookware
Digital Cookware has developed a new kind of skillet that should make cooking easier
for many non-chefs. The skillet has a display on its handle that beeps to alert the cook
when the pan’s target temperature is reached. The skillet, with the aid of an
accompanying cookbook, will take much of the guesswork out of cooking. Digital
Cookware is a small company, and it has invested considerable money in developing
this new technology, which it eventually hopes to use in an entire line of pots and pans.
It has run some small ads for the new skillet in cooking magazines and has been
featured on some morning talk shows. It needs a quick infusion of cash to maintain its
current operational level and to develop the rest of the cookware line. Digital Cookware
is considering some kind of sales promotion.
Refer to Digital Cookware. The company’s first task is to define its exact sales
promotion objective. If the goal of the company is to persuade customers to buy its
brand of skillet as opposed to one of the skillets made by its competition, it should:
a. use on-pack coupons.
b. run a cooking contest that has contestants enter recipes that use the new skillet.
c. use price-off packages.
d. use bonus packs.
e. institute a loyalty marketing program.
Answer:
_____ is an orderly series of stages in which consumers’ attitudes and behavioral
tendencies change through maturity, experience, and changing income and status.
a. Socialization
b. The wheel of consumerism
c. The family life cycle
d. Lifestyle consumption
e. Acculturation
Answer:
The Cedar Store carries a full line of cedar swings, gliders, garden benches, and tables.
All of its products can be purchased through its Web site. The site has done well since
the Cedar Store’s products do not need to be touched or smelled before purchase. The
Cedar Store is engaging in:
a. online retailing.
b. shop-at-home networking.
c. mobile vending.
d. franchising.
e. electronic wholesaling.
Answer:
Ritz-CarltonHotels
Cesar Ritz, the founder of the original RitzCarlton, Boston, was known as the “king of
hoteliers and the hotelier to kings.” Today, there are more than 70 RitzCarlton hotels
spanning 24 countries with 38,000 employees. These are not typical employees, though.
They are described as “Ladies and Gentlemen serving Ladies and Gentlemen.”
Employees participate in an intensive orientation program and recertification programs
throughout their careers with the company, and many are allowed $2,000 to fix a guest’s
problem on the spot without managerial approval. So renowned is the Ritz way of doing
business that the company offers a Leadership Center for executives and managers of
other companies to learn and implement the Ritz way of customer service. But it
doesn”t stop with employees. RitzCarlton hotels recently launched “Give Back
Getaways” in 2008 that allow guests to volunteer in locales where they are vacationing.
The hotel also offers “Vow to Help Others,” which is a program that donates a portion
of a wedding couple’s reception costs to those in need. The chief operating officer’s
words sum up Ritz Carlton’s philosophy best: “If we really do our job, we really don”t
need sales anymore. Satisfied guests are your advertising.”
Refer to Ritz-Carlton Hotels. Ritz-Carlton embodies an organization-wide commitment
to service and support so that customers attain benefits relative to the price they pay for
this service. Which element of an organization’s focus is this commitment satisfying?
a. Empowerment
b. Customer value
c. Customer acquisition
d. Creativity
e. Primary goal making
Answer:
TruColor Printers has purchased a Heidelberg printing press with auto-blanket wash and
chilled rollers for $2.2 million. The company will depreciate the value of the printing
press over several years. The printing press would be considered:
a. major equipment.
b. a component part.
c. processed material.
d. a fabricating item.
e. accessory equipment.
Answer:
AppleStores
Apple, Inc. opened its first Apple Store in 2001 and currently has hundreds of stores
spanning several countries. Many of the Apple Stores are inside malls, but Apple also
has several freestanding stores, which they call their flagship stores, with each looking a
little different on the outside. These are located in New York City, Boston, Los Angeles,
Chicago, San Francisco, Montreal, Tokyo, and Osaka.
The store in New York City is a glass cube with a glass cylindrical elevator and spiral
staircase that leads to an underground store. Inside, they have long tables displaying
products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other
accessories. All these products are accessible to customers who can try them out and
ask various questions of informed associates. The walls are mostly metallic, and the
signs are all backlit.
All stores have a Genius Bar where customers can receive technical advice or set up
service and repair for their products. To address the needs of the many iPod users, some
stores, such as the New York store, have set up a separate iPod Bar where customers
can get their own technical assistance. They also have an iMac station for kids who
want to try out games and learning products and a theater for workshops, product
training sessions, and special presentations.
Apple introduced the handheld Easy Pay system where customers don”t have to wait in
line to purchase products. With a simple click of a paperless, handheld credit card
scanner, the employee brings the cash register to the customer. Items can be rung up
anywhere on the show room floor. Apple plans to open several more stores in the years
to come.
Apple also has its online store. At its Web site, a customer can order any Mac or iPod
product, plus a large variety of accessories. In addition to its product offerings, a
customer can watch a demonstration of how products work or check out the latest Mac
ads or news.
Refer to Apple Stores. What method of non-store retailing does Apple take advantage of
through the use of its Web site?
a. Telemarketing
b. Automatic vending
c. Direct mail
d. Catalogs and mail orders
e. Online retailing
Answer:
Marketing strategy involves the activities of selecting and describing one or more target
markets and developing and maintaining a marketing mix that will produce mutually
satisfying exchanges with target markets.
a. True
b. False
Answer:
Opinion leaders are often the first to try new products and services.
a. True
b. False
Answer:
The Ritz-Carlton has Service Values that guide employees in providing its Gold
Standard service. One of the service values states, “I own and immediately resolve
guest problems.” The RitzCarlton management uses _____ to provide customer service.
a. training
b. deregulation
c. empowerment
d. commissioning
e. mediating
Answer:
The process by which people select, organize, and interpret stimuli into a meaningful
and coherent picture is called:
a. identification
b. retention
c. comprehension
d. perception
e. cognitive adaptation
Answer:
Heinz is expected to introduce more than 400 new products in the next two years. One
of the products is a spicier ketchup aimed at the baby boomer market. The spicier
ketchup would be considered what type of new product?
a. Discontinuous innovation
b. New to market
c. New product line
d. Lower priced
e. Addition to existing product line
Answer:
UniversityResearchStudy
A regional state university is experiencing declining enrollments. The administration is
concerned with this situation and has asked a marketing research class to conduct a
research study and make recommendations. One thing the administration is interested in
learning is the feasibility of offering all of their degrees online as well as through the
traditional on-campus degree program. They do not know what the market potential
would be for online degrees and potential students’ attitudes and intentions toward
getting an online degree from this university.
Refer to University Research Study. If the students analyze census data to determine
demographic trends in the primary market area for the university, they are using ___
data.
a. primary
b. secondary
c. proprietary
d. single-source
e. representational
Answer:
HallmarkCards
Hallmark Cards is just one of thousands of companies that have a strong online
presence. Hallmark’s Twitter
account and Facebook page allow the company to talk directly to customers and also
lets the customers talk to each other. Hallmark Social Calendar is a Facebook app that
helps users stay on top of special events like birthdays and anniversaries; customers can
use the app to send electronic cards to their friends’ PCs and cell phones. In addition,
Hallmark operates several blogs, where it shares anecdotes about the company and
often solicits opinions on various aspects of greeting card design and on ideas for gifts
and their pricing. The company encourages Facebook fans to talk about their lifestyles
and even upload photos of themselves so that it can better understand its market. The
conversations consumers have with each other often result in interesting insights, such
as gift ideas for specific occasions and the prices they are willing to pay for different
gifts.
Refer to Hallmark Cards. The blog operated by Hallmark Cards is an example of a:
a. corporate blog.
b. media sharing site.
c. Microblog.
d. noncorporate blog.
e. location-based social networking site.
Answer:
Bethany is in the market for a new cell phone. She tweets to her followers on Twitter:
“Hey, looking for some info about good cell phone deals. Any advice?” Bethany is
using a(n) ____ information source to help her make her decision.
a. experiential
b. marketing-controlled
c. internal
d. unbiased
e. nonmarketing-controlled
Answer:
In a newspaper release, Corning, Inc. announced it had received a favorable ruling from
China’s Ministry of Commerce on allegations that it was selling its fiber more cheaply
in China than in other countries. Corning was falsely accused of:
a. dumping
b. offloading
c. boycotting
d. repatriating
e. crossdocking
Answer:
Radio One is the largest U.S. radio broadcasting company targeting black Americans
today. Radio One staffers are constantly reviewing secondary information looking for
any emerging trends in their target market. Potential disadvantages of this research
approach include:
a. the questionable quality of the data
b. the high cost of collecting secondary data
c. the length of time it takes to collect secondary data
d. interviewer bias during the collection process
e. the potential for sampling error
Answer:
Which type of pricing means pricing at odd-numbered prices to connote bargains and
pricing at even-numbered prices to imply quality?
a. Bait pricing
b. Price bundling
c. 1″2 pricing
d. Odd”even pricing
e. Two-part pricing
Answer:
ChoiceHomes,Inc.
Choice Homes, Inc., based in Texas, built its reputation by building high-quality new
homes, often at prices less than “used” ones. Choice Homes used mass purchasing
power, innovative hightech communications among employees to coordinate the
building process, and other entrepreneurial strategies to hold costs down. Its homes are
primarily targeted at first-time homeowners-to-be in an effort to get people out of
apartments so they can experience the “American Dream” of home ownership for the
same price as rent. Choice Homes later developed the “Choice Classic” brand name for
higherend homes targeted at wealthier dualincome couples. The Choice Classic name
was designed to capitalize on the reputation of Choice Homes, especially for current
Choice home owners who are ready to “move up” to a larger home. Recently, Choice
Homes started a third line of homes called “Reflections,” which are expensive,
custom-designed homes located in exclusive, prestigious neighborhoods.
Refer to Choice Homes, Inc. Choice Homes is considering the development of a new
category of small homes designed to replace low-income housing in the inner city. This
strategy represents a:
a. quality modification.
b. product line extension.
c. style modification.
d. product line contraction.
e. functional modification.
Answer:
David likes New Balance running shoes. However, when he stopped by the Foot Locker
to buy a new pair of running shoes, he noticed that Nike had a new pair of running
shoes that cost $350. To David, the higher price of the Nike shoe indicated that it would
be a better pair of running shoes. This is an example of:
a. premium pricing.
b. price lining.
c. prestige pricing.
d. exclusive pricing.
e. selective pricing.
Answer:
Procter & Gamble (P&G) decided to address the fact that Hispanic women are more
likely to die from breast cancer because they”re reluctant to get mammograms or
discuss screening. So P&G brought screening to the supermarket, parking mobile
mammography vehicles in grocery store parking lots in Texas and inviting shoppers in
for free x-rays. Tie-ins with local hospitals assured that women with suspicious films
got follow-up care. P&G adopted a orientation to achieve this goal.
a. promotional
b. societal marketing
c. customer
d. marketing
e. product
Answer:
____ is the careful coordination of all promotional activities to produce a consistent,
unified message that is customer focused.
a. Interpersonal and mass communications (IMC) approach
b. Promotional mixing
c. Integrated marketing communications
d. Creative selling
e. Relationship marketing
Answer:
Ethical development can be thought as having three levels. The most basic, childlike
level is the _____ stage.
a. preconventional morality
b. transformationalism
c. conventional morality
d. postconventional morality
e. actualized morality
Answer:
You are the brand manager for a new line of allergy-relief drugs. Which of the
following methods might you employ to use opinion leadership/reference groups to
help stimulate demand for your products?
a. Create ads that show the typical consumer performing a healthy lifestyle activity.
b. Develop a promotional campaign that tells customers they “deserve to use” these
products.
c. Drop the price of your new products to the point where customers will realize they
are getting a bargain.
d. Develop a promotional campaign that emphasizes safety and security needs being
fulfilled by these healthcare products.
e. Use a series of ads showing different healthcare associations and societies endorsing
the use of these healthcare products.
Answer:
A(n) ____ is a characteristic that can be easily assessed prior to purchase, such as the
softness of a mattress or the color of curtains.
a. search quality
b. intangible attribute
c. experience quality
d. credence quality
e. heterogeneity feature
Answer: