The quantity consumed or patronage (store visits) during a specific period is referred to
as
A. usage rate.
B. purchase metric.
C. consumption index.
D. consumption rate.
E. demand amount.
Answer:
Pizza Hut’s website __________ are integrated with the company’s overall
communications programs – including traditional media – with product innovations,
promotions, and special events shared across platforms.
A. context
B. communication
C. commerce
D. connection
E. community
Answer:
One of the eight primary marketing-related reasons for new-product failure is
__________.
A. not listening to the voice of the engineer
B. incomplete market and product protocol
C. too much advertising or too aggressive a tone for it
D. failure to anticipate competitors actions
E. insufficient funding for roll-out
Answer:
Marketing two or more products in a single package price is referred to as
A. package pricing.
B. loss-leader pricing.
C. bundle pricing.
D. tie-in pricing.
E. multi-product pricing.
Answer:
Permission marketing refers to
A. the interactive, Internet-enabled system that allows individual customers to design
their own products and services by answering a few questions and choosing from a
menu of product or service attributes, prices, and delivery options.
B. the consumer-initiated practice of generating content on a marketer’s website that is
custom-tailored to individual’s specific needs and preferences.
C. an Internet-enabled digital environment characterized by face-to-screen exchange
relationships and electronic images and offerings.
D. the solicitation of a consumer’s consent to receive e-mail and advertising based on
personal data supplied by the consumer.
E. a process that automatically groups people with similar buying intentions,
preferences, and behaviors and predicts future purchases.
Answer:
A market-product grid is a framework to relate the __________ to products offered or
potential marketing actions by an organization.
A. market segments of potential buyers
B. marketing objectives of potential products
C. total anticipated revenue
D. total anticipated profit
E. market share of the closest competitor
Answer:
Jeff Tabrizi is the owner of Tabrizi Oriental Rugs located in Toronto, Canada. He shops
the world over, handpicks, and orders beautiful, authentic handmade rugs. He has them
shipped to Canada, where he sells them through his brick-and-mortar stores and his
www.tabrizi.com website. In terms of the marketing channel, Jeff is acting as a(n)
__________.
A. consumer
B. agent
C. wholesaler
D. brokerage firm
E. middleman
Answer:
Kemps Dairy makes Life Savers Real Fruit Sherbet (with the flavors of a favorite
childhood candy). Kemps Dairy pays Wrigley, the owner of the Life Savers brand
name, a fee to market this product. This is an example of __________.
A. generic branding
B. reseller licensing
C. mixed branding
D. brand licensing
E. co-branding
Answer:
Crapola Granola Products Photo
The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as
gifts for almost every occasion imaginable. For the Vermont Teddy Bear Company,
Teddy bears are an example of a
A. product class.
B. product mix.
C. SKU.
D. marketing category.
E. product line.
Answer:
A business student is preparing for the Graduate Management Admission Test (GMAT)
so he can get into a good graduate business school. He knows that any money he spends
on a tutor will be well worth it if he can improve his scores. He’s heard that there is a
great tutor in his local community but has no idea who she is. To ensure that marketing
occurs with her, he should
A. buy a GMAT study guide at his college bookstore.
B. find out what the minimum score he needs to get into the graduate business school of
his choice.
C. attempt to find the tutor by conducting a Google search for her website, looking for
flyers in the students’ business lounge, obtaining copies of the college newspaper paper
and looking for her ad, or asking his friends whether they know of her and her tutoring
services.
D. consider alternatives to graduate school in case the scores he receives by taking the
test without any help are not sufficient admission.
E. apply for delayed admission if he can’t find this tutor.
Answer:
The categories for equipment-based services include __________.
A. hand tools, simple machines, complex machines
B. unskilled operators, skilled operators, and professional operators
C. simple machines, technical equipment, and safety equipment
D. those powered by unskilled labor, those operated by skilled operators, and those
operated by professionals
E. automated, those operated by unskilled operators, and those operated by skilled
operators
Answer:
All of the following are popular product categories for showrooming EXCEPT:
A. toys.
B. books.
C. apparel.
D. consumer electronics.
E. home appliances.
Answer:
An advertising agency that assists clients by both developing and placing
advertisements may receive payment according to an incentive plan based on
performance. These plans typically pay for agency costs and a 5 to 10 percent profit,
plus bonuses if specific goals are met. This type of arrangement is popular among
__________.
A. full-service agencies
B. in-house agencies
C. modified-service agencies
D. promotional firms
E. limited-service agencies
Answer:
A break-even chart refers to a graphic presentation
A. that shows the maximum number of units that will be sold at a certain price.
B. that shows when total revenue and total cost intersect to identify profit or loss for a
given quantity sold.
C. that relates variable costs in terms of product or service substitutes in order to
determine which items or services would least affect total revenues.
D. that relates profits and revenues versus total costs in order to determine the time
frame in which a company could achieve profitability.
E. is a form of scatter graph used to identify specific activities or items that are creating
the greatest return on investment.
Answer:
Price elasticity of demand (E) is expressed as (∆ means change):
A. E = Percentage change in price (%∆ in P) Percentage change in quantity demanded
(%∆ in Q).
B. E = Price (P) Quantity demanded (Q).
C. E = Percentage change in quantity demanded (%∆ in Q) Percentage change in price
(%∆ in P).
D. E = Quantity demanded (Q) Price (P).
E. E = Quantity demanded (Q) Price (P).
Answer:
If a purchase is a new buy for a manufacturer, the seller should
A. expect a long time for a buying decision to be reached.
B. neutralize the typically high levels of conflict.
C. maintain flexibility, since specifications are likely to be changed several times before
the buy is completed.
D. be prepared to do some favors for the decision makers.
E. avoid making concessions or compromises.
Answer:
Recently, Gartner Research and 1To1 Media recognized Microsoft Dynamics Customer
Relationship Management (CRM) and its xRM framework for delivering increased
productivity and cost savings for customers worldwide. Microsoft experts work
individually with customers to flesh out what issues they have and adapt their enterprise
software to meet the unique needs of the customer. The Microsoft expert is most likely
engaged in
A. relationship selling.
B. formula selling.
C. suggestive selling.
D. adaptive selling.
E. consultative selling.
Answer:
Pizza Hut was a pioneer in QSR. QSR is an acronym for __________.
A. quick serve restaurant
B. quality service restaurant
C. quality, service, and responsibility
D. quantity service restaurant
E. quality service review
Answer:
Forever Quilting is a small company that makes quilting kits priced at $120. The costs
of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The
company has monthly expenses of $1,000 for rent and insurance, $200 for heat and
electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Forever
Quilting’s unit variable cost for its kits is
A. $5.
B. $45.
C. $50.
D. $120.
E. $170.
Answer:
A company that successfully employs permission marketing adheres to three rules: (1)
__________; (2) customers are given the option of opting out, or changing the kind,
amount, or timing of information set to them; and (3) their customers are assured that
their name or buyer profile data will not be sold or shared with others.
A. opt-in customers will be guaranteed the lowest possible price for an item compared
to similar products or services sold by its competitors
B. the firm will never buy marketing lists from other companies that may contain their
personal information
C. opt-in customers only receive information that is relevant or meaningful to them
D. customers will receive a “30-day money back guarantee if not 100% satisfied” for
any product purchased online
E. customers will be protected from identity theft for any product purchased from its
website
Answer:
Which of the following products mentioned in Chapter 1 failed in the marketplace as a
result of product misuse?
A. Life is Good t-shirts
B. Hot Pockets
C. Bell bicycle helmets
D. 3M Post-it Flag+ Highlighter
E. Dr. Care toothpaste
Answer:
A disadvantage of a straight commission compensation plan is that
A. it provides incentive to expand sales volume.
B. it can discourage salespeople from providing customer service.
C. it includes nonselling activities that take time away from selling.
D. the overall compensation is usually lower than a straight salary compensation plan.
E. it is difficult to administer.
Answer:
Marketing research refers to
A. the process of systematically collecting and analyzing information in order to define
a marketing problem.
B. the use of information technology to find objective solutions to a marketing problem.
C. the process of defining a marketing problem and opportunity, systematically
collecting and analyzing information, and recommending actions.
D. the use of subjective data such as interviews and observation to complement
empirical data obtained through the use of information technology.
E. the science of using observable human behavior in order to identify and solve
marketing problems.
Answer:
The blending of different communication and delivery channels that are mutually
reinforcing in attracting, retaining, and building relationships with consumers who shop
and buy in traditional intermediaries and online is referred to as __________.
A. direct marketing
B. indirect marketing
C. intensive marketing
D. multichannel marketing
E. electronic marketing
Answer:
Most companies become involved in direct exporting when
A. foreign governments believe that they will benefit the most from allowing the entry
of direct exports.
B. emerging markets in foreign countries become economically viable.
C. they believe their volume of sales will be sufficiently large and easy to obtain so that
they do not require intermediaries.
D. the domestic market becomes saturated with competing products and services.
E. evolving technologies in foreign countries come online.
Answer:
Ben & Jerry’s mission to improve humanity is linked to various organizational and
marketing strategies, one of which is
A. using milk and cream obtained from Caring Dairy, a cooperative that guarantees it
suppliers are bovine growth hormone free.
B. the intent of making modest profits without sacrificing high product quality
standards.
C. ingredients that are all completely organic and are available only in Vermont to
ensure freshness and contribute to the local economy.
D. a commitment to donating a percentage of profits to Teach for America.
E. ingredients that come exclusively from developed countries promoting Fair Trade
practices.
Answer:
An aspiration group is one
A. to which a person belongs, and wishes to continue with.
B. that a person wishes to be a member of or wishes to be identified with.
C. that a person wishes to maintain a distance from because of differences in values or
behaviors.
D. that a person knows he or she can never really fit into because of basic cultural
differences.
E. that a person feels is significantly above him or her in terms of socioeconomics.
Answer:
A gray market refers to
A. the segment of products specifically designed for the need of older buyers.
B. a once active and powerful market that is rapidly becoming the bottom of the barrel.
C. a situation where products are sold through unauthorized channels of distribution.
D. a pricing structure that is based upon haggling that is considered acceptable in some
countries but not others.
E. the willingness of one party to accept gifts in exchange for better prices or price
allowances.
Answer:
A sales plan refers to a
A. method of determining a fair and equitable compensation plan.
B. method of identifying the target markets that most closely meet the special skills of
the salesforce.
C. method for determining the size of a salesforce that integrates the number of
customers served, call frequency, call length, and available selling time to arrive at a
salesforce size figure.
D. statement describing what is to be achieved and where and how the selling effort of
salespeople is to be deployed.
E. method that specifies times and places for direct communications between
salespeople and their supervisor.
Answer:
Predatory pricing refers to
A. the practice of charging a very low price for a product with the intent of driving
competitors out of business.
B. a conspiracy among firms to set prices for a product.
C. using price differentials when charging different prices on the basis of race, religion,
or ethnic affiliation.
D. using price differentials when charging the original price for refurbished goods that
have been damaged or used and returned but repaired according to company
specifications.
E. controlling agreements between independent buyers and sellers whereby sellers are
required to not sell products below a minimum retail price.
Answer:
Logistics is most closely related to which element of the marketing mix?
A. product
B. place
C. production
D. promotion
E. price
Answer:
Figure 12-1
A variety of terms are used for marketing intermediaries. According to Figure 12-1
above, E represents a(n) __________.
A. retailer
B. middleman
C. wholesaler
D. distributor
E. agent or broker
Answer:
What are the characteristics of organizational buying behavior?
Answer:
Define consumer socialization.
Answer:
What is the difference between fixed costs and variable costs?
Answer:
How do consumers use price in their assessments of value?
Answer:
How do online consumers differ from the general population? What three
characteristics of online consumers make them an attractive market?
Answer:
Play devil’s advocate. Select any American industry and argue persuasively why
protectionism is not only patriotic, it is absolutely essential for survival.
Answer:
Explain how the wheel of retailing works.
Answer:
Define brand equity. List the four sequential steps used to develop brand equity. Which
step is the most difficult?
Answer:
What role does price play in the managing of services?
Answer:
Describe the four general bases that are used to segment consumer markets.
Answer:
Assume you are manager of The Outback Steak House, a franchised restaurant that has
opened at new location in St. Louis. Describe which segmentation base(s) and possible
segmentation variable(s) you would use to segment its market and explain why each
supports the appropriate market segmentation strategy.
Answer:
What are the product and promotion strategies available to a company seeking to enter
the global marketplace? How do they relate to each other in terms of the same or
adapted product and promotion?
Answer:
Distinguish between elastic demand and inelastic demand.
Answer:
A recent survey found that 79 percent of Internet and e-commerce companies take
absolutely no social responsibility. Even more worrying is the finding that 75 percent of
these Internet companies justify this omission on the grounds that they don’t have any
environmental or social impacts, while 55 percent said they didn’t have time to think
about these issues, and 50 percent said they didn’t have the expertise to address them.
Would these Internet-based companies benefit from acting more socially responsible?
Explain your answer.
Answer:
Explain why price elasticity is important to marketing managers.
Answer:
What is the impact of retailing for consumers and the economy?
Answer:
Explain the difference between trading up and trading down when repositioning a
product.
Answer:
How do the macroeconomic conditions as well as consumer income affect marketing?
Answer:
What specific decision areas are associated with the flow of goods and together make
up total logistics cost?
Answer:
Define spam and viral marketing.
Answer: