Scenario 5.1
Use the following to answer the questions.
Lil’ Angels Kids Spa offers various treatments designed to appeal to the younger
customers. Treatment options include manicures, pedicures, facials, tea parties, and
dress up photos. Parents can even purchase a birthday party package. Currently, Lil’
Angels offers its services only to girls under the age of 14. Originally begun in
Delaware, Lil’ Angels is considering opening its spa/salons in other parts of the country
and is planning to expand its offerings to girls aged 14 to 17. The company realizes that
some changes may be needed. For example, the management wants to find out if the
older girls will be interested in their birthday party and tea party services.
In calculating the sales forecast for the next year, marketers at Lil’ Angels use data from
the past five years in order to identify any trends that surface. Additionally, marketers
want to find out what family variables relate to those sales. Which of the following
variables should the marketers use in relating to sales? What type of forecast method
will they implement to relate the variables to sales trends?
a. behavioristic; time series analysis
b. psychographic; time series analysis
c. demographic; regression analysis
d. income; regression analysis
e. family life cycle; market tests
Buyers in producer markets purchase raw materials and semifinished products.
a. True
b. False
Cooperative advertising refers to advertisements promoting a product and identifying
participating retailers that sell the product.
a. True
b. False
Tim has just finished compiling a list of potential customers and evaluating their ability,
willingness, and authority to buy. He knows his next step in the personal selling process
is to:
a. approach.
b. preapproach.
c. make the presentation.
d. prospect.
e. overcome objections.
Which of the following is true about wholesaling?
a. Wholesaling activities must be performed during distribution of all goods, whether or
not a wholesaling institution is involved.
b. Warehouses are necessary in order for the wholesaling function to be completed.
c. Only wholesaling establishments can perform wholesaling activities.
d. Wholesaling is an inefficient process that should be eliminated from the marketing
channel.
e. The biggest problem with the wholesaling process is that inefficient wholesalers can
thrive, at the expense of consumers.
As Will reads the copy for South Beach Hotel’s upcoming magazine ad in Southern
Living, he worries that no one will spend the time to read all the details of the facilities
his resort has to offer. Wanting to have the greatest impact, Will focuses his creative
efforts on the .
a. copy
b. body
c. text
d. signature
e. headline
Which of the following is not an advantage of using publicity-based public relations
tools?
a. Control by media personnel of the content and timing of messages
b. Credibility
c. Strong news value
d. Follow-up word-of-mouth communications
e. A favorable perception of being endorsed by the media
If a product is priced based on how many or how few people want it at a particular time
and place,__________pricing is being used.
a. markup
b. demand-based
c. competitive
d. peak
e. differential
Effective sales force motivation is achieved through an organized set of activities
performed continuously by the company’s sales management.
a. True
b. False
A market segment profile may cover such aspects as demographic characteristics,
geographic factors, product benefits sought, lifestyles, brand preferences, and usage
rates.
a. True
b. False
Zeon Corporation’s partnership with Alcove Inc., a global courier delivery service
company, has given it an edge over its rivals in the printing, faxing, and delivery
market. Since this partnership can’t be easily copied by the competition, it represents
a(n) .
a. market opportunity
b. sustainable advantage
c. strategic window
d. absolute advantage
e. performance standard
Locating prospects, educating customers, and building goodwill are functions
performed by support personnel.
a. True
b. False
If the University Bookstore wanted to understand the textbook and school supplies
needs on the campus of the
University of Michigan, the population of study would be .
a. the faculty and staff of the University of Michigan
b. all college-aged adults in the state of Michigan
c. all the people who live in Ann Arbor and surrounding areas
d. undergraduate students at the University of Michigan
e. all students, faculty, supporters, and staff of the University of Michigan