Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Fitbit
The pedometer is getting kicked up a notch with the new Fitbit device. The Fitbit is a
$99 motion-detecting sensing device that can measure the user's activity even when
asleep. It digitally records the distance a user walks or runs, right down to the number
of steps, and calories burned. The device wirelessly sends data to its Web site,
fitbit.com, giving users minute-by-minute details. Users can add consumption
information at the Web site, allowing an accurate picture of calorie consumption and
expenditures. Unlike other devices, like the Nike + iPod Sport Kit that monitors
walking and running and sells for $29 or the Zeo Personal Sleep Coach that records
brainwaves while the user is sleeping and sells for $399, the Fitbit combines both
functions. The firsttime Fitbit setup isn"t very easy for users, but once over that hurdle,
it's relative easy to use.
Refer to Fitbit. The fact that Fitbit can monitor motion while awake and asleep makes it
different from competing products that might increase its rate of adoption. Which
product characteristic affecting the rate of adoption does this illustrate?
a. Complexity
b. Compatibility
c. Relative advantage
d. Observability
e. Trialability
Answer:
Diaz
John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop
called Diaz in a small upper- middle-class neighborhood. It rapidly became popular
because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees
from around the world, plus coffee-making necessities such as grinders and brewers.
Within ten years, Diaz was operating a lucrative mail-order business in addition to his
coffee shop. Upon entering the shop, the first thing the customer sees is a countertop
crowded with all of the machinery needed for making a perfect cup of coffee.
Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one
wall hold books about coffee for patrons to read while they sip. The smell is
intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they
leave. The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300
per pound Kopi Luwak from Sumatra.
Refer to Diaz. The smell of fresh coffee, the fact it is made where drinkers can watch
the process, and the comfortable chairs all are used to create the store's:
a. atmosphere.
b. cultural impact.
c. target strategy.
d. merchandise mix.
e. promotional strategy.
Answer:
A _____ is a study conducted by an organization to identify its internal strengths and
weaknesses and also examine external opportunities and threats.
a. situation analysis
b. marketing audit
c. trend analysis
d. startegic alternative selection
e. competitive advantage audit
Answer:
All of the following are benefits from organizing related items into product lines
EXCEPT:
a. package uniformity.
b. varying quality.
c. advertising economies.
d. efficient sales and distribution.
e. standardized components.
Answer:
Home Cookin" Catering would like to improve customer satisfaction and increase
repeat business. When you ask the owners to describe a typical customer, they say it is
impossible and explain that with corporate functions, family affairs, and fund-raisers,
they do not have a typical customer. You suggest it is time for market segmentation
because:
a. it will enable them to build an accurate description of customer needs by group and to
design a marketing mix to fit each segment
b. the company needs to reduce the size of the market it serves
c. the company needs to learn how to group these markets together into one market to
serve all of them adequately
d. it will help develop a generalized definition of the market as a whole and reveal the
optimal marketing mix for this market
e. this will position the company in the minds of its consumers as compared to its
competitors
Answer:
The Steel Recycling Institute is an industry association that promotes and sustains the
recycling of all steel products. An article in Business Week magazine about how the
institute plans to stimulate consumer demand would be an example of:
a. direct selling.
b. news marketing.
c. publicity.
d. event marketing.
e. direct marketing.
Answer:
Greenberg Smoked Turkey, Inc. is a nationwide mail-order business that operates
without any advertising. It does not accept credit cards, has no toll-free number for
customers to call, and does not have a Web site. This hopelessly oldfashioned company
is also very profitable with thousands of devoutly loyal customers"'some of whom have
ordered Greenberg smoked turkeys every year for the last 50 years. Greenberg more
than likely uses to maintain these long-term ties to its customers.
a. reactive marketing
b. synergistic management
c. relationship marketing
d. a sales orientation
e. management empowerment
Answer:
When Becca saw the ad suggesting Subway sandwiches as a dinner meal, she was
offended by the spokesperson and wondered why anyone would want to do business
with a company that thought being obnoxious was a good business practice. In terms of
the communication process, Becca:
a. correctly encoded the message.
b. created a longer than normal communication channel.
c. improperly decoded the message.
d. had no feedback.
e. improperly encoded the message.
Answer:
Walmart
Walmart, the world's largest retailer by revenue, announced that it will get back to its
founder's roots by initiating more price cuts. Critics claimed that the giant was getting
away from its original focus because it posted relatively high gross profit margins. CEO
Mike Duke assuaged critics by saying Walmart's $400 billion in sales will become even
larger because the price cuts will attract more customers and it will lower its costs of
goods sold.
Refer to Walmart. In terms of ownership, Walmart would be classified as a(n):
a. independent retailer.
b. chain store.
c. franchise.
d. discount store.
e. department store.
Answer:
Monday and Tuesday nights are traditionally slow nights in the restaurant business. So
LaRosa's Italian Restaurant offers "allyoucaneat spaghetti night" on Mondays and
Tuesdays. For the price of a regular spaghetti dinner, customers can eat all the spaghetti
they want on those nights. Because it is focusing on coordinating supply and demand by
varying prices, the restaurant is using a(n) ____ pricing objective for service firms.
a. revenue-oriented
b. operations-oriented
c. image-focused
d. patronage-oriented
e. equity-oriented
Answer:
A national manufacturer of car parts has six warehouses and has a pricing policy of
charging freight from the closest warehouse to the customer, regardless of where parts
are shipped from. For instance, if the customer is in Vancouver, British Columbia, the
closest warehouse to the customer is in Seattle, Washington. If the ordered car part
actually comes from the Alabama warehouse, the customer still pays freight from
Seattle. The manufacturer uses _____pricing.
a. FOB origin
b. uniform delivered
c. zone
d. basing-point
e. freight absorption
Answer:
One of the reasons for the growing popularity of integrated marketing communications
is the proliferation of thousands of new media choices.
a. True
b. False
Answer:
Families of police officers often alter information they hear about officers who die in
the line of duty. This ____ allows them to live and function without constant anxiety
while their loved one is engaged in a potentially dangerous job.
a. selective retention
b. selective distortion
c. selective exposure
d. faulty selectivity
e. adaptive stimulus
Answer:
When asked to name a brand of sports drink, most people will answer Gatorade, and
some will respond with POWERade. But people with diabetes who still need to
replenish electrolytes lost during activity or illness cannot drink these sports drinks
because they are high in sugar and thus cannot be consumed by diabetics. As a result, a
manufacturer has developed Champion Lyte, which contains no sugar. The
manufacturer of Champion Lyte has used _____ segmentation to identify its market.
a. geodemographic
b. usage-rate
c. demographic
d. psychographic
e. benefit
Answer:
The physical evidence of a service, including the physical facilities, tools, and
equipment used to provide the service, represents which component of service quality?
a. Reliability
b. Responsiveness
c. Assurance
d. Empathy
e. Tangibles
Answer:
The Group of Twenty is the largest free trade agreement in the world.
a. True
b. False
Answer:
_____ is anything that interferes with, distorts, or slows down the transmission of
information.
a. Media communication
b. Feedback
c. Static
d. Nonpaid communication
e. Noise
Answer:
John R. Harland Company is best known for printing checks. Its Financial Solutions
division develops software for mortgage companies and is currently producing much
less than the desired level of profitability in a high-growth industry. According to the
portfolio matrix, Harland would label its Financial Solutions division as a(n):
a. widow
b. exclamation point
c. problem child
d. star
e. dog
Answer:
Mario usually purchases Old Spice deodorant. Unfortunately, the drug store is sold out
of Old Spice today, so Mario will have to choose a brand that's in stock. In making his
decision, Mario will engage in ____ consumer decision making.
a. limited
b. extended
c. habitual
d. classical
e. routine
Answer:
The product characteristic affecting the rate of adoption characterized by the degree to
which a product is perceived as superior to existing substitutes is:
a. compatibility
b. complexity
c. relative advantage
d. product differentiation
e. competitive advantage
Answer:
The promotional mix is the combination of promotional tools used to reach the target
market and fulfill the organization's overall goals.
a. True
b. False
Answer:
Revenue-oriented pricing focuses on maximizing the surplus of income over costs.
a. True
b. False
Answer:
In the wake of the global recession of 2008-2009, many countries have:
a. aggressively sought new trade agreements
b. all but eliminated tariffs and quotas
c. tightened environmental regulations and improved working conditions for
low-income employees
d. moved toward protectionism
e. drastically reduced imports and exports
Answer:
All of the following are true about CRM except:
a. Most customers resent how companies use their information.
b. CRM is a huge commitment.
c. Marketers often have to completely rethink how they target customers.
d. Loyalty programs use CRM to thank customers for their business and reinforce the
decision to shop at that store.
e. CRM makes purchase decisions more routine for regular customers, which offers
time savings.
Answer:
A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the
New England area where the winters are harsh and that lighter-weight blankets sell
better in the Southeast market where mild winters require fewer and lighter covers for
the bed. Segmenting the market according to climate is an example of
____ segmentation.
a. psychographic
b. lifestyle
c. perceptual
d. demographic
e. geographic
Answer:
When the price of a product is set at a level where demand and supply are the same,
____ price has been achieved.
a. equilibrium
b. stability
c. leverage
d. symmetry
e. status quo
Answer:
____ means having both the authority to make the purchase decision and the funds to
pay for it.
a. Purchase management
b. Procurement specialization
c. Right to acquire
d. Buying power
e. None of the above.
Answer:
Which of the following is a member of a supply chain team that moves just-picked
cotton to finished clothing and then to the consumer of that clothing?
a. The warehouse in which the cotton was temporarily stored
b. The ad agency that develops the promotion for the clothing
c. The farmer who picks the cotton
d. The trucking company that hauls the cotton to the clothing manufacturer
e. All of the choices
Answer:
Best Buy charges customers a 15 percent restocking fee on some returned items. A
restocking fee is for putting a returned item back into inventory. This is an example of
a:
a. bait-and-switch.
b. trade-in.
c. consumer penalty.
d. product absorption strategy.
e. price bundle.
Answer:
____ is probably the most important factor in determining the promotional mix.
a. The advertising agency
b. The need for feedback
c. Money
d. Media availability
e. Message flexibility
Answer:
Estefan works as a production editor for a major textbook publisher. He hopes to build a
list of freelancers whom he can call on to edit and proofread materials for his company.
LinkedIn would be a good place for Estefan to find such individuals.
a. True
b. False
Answer:
As a customer entered the Hornady store, which sells muzzleloading rifles, a
salesperson approached her and said, "Hornady lead round balls are the musket balls
you ought to buy. They are the most uniform in size and shape, and they are made of
pure lead. Our shot is used by the Muzzle Loading World Champion." The salesperson
was describing Hornady's:
a. competitive advantage
b. strategic strength
c. tactical opportunity
d. opportunity mission
e. quality objective
Answer:
If a country's currency appreciates, more of that currency will be needed to buy another
country's currency.
a. True
b. False
Answer:
A(n) ____ is a global intermediary who brings the buyer and seller together.
a. buyer for export
b. export agent
c. license agent
d. import agent
e. export broker
Answer:
_____ is how consumers perceive themselves in terms of attitudes, perceptions, beliefs,
and self-evaluations.
a. Socialization
b. Personality
c. Socialization
d. Normalization
e. Self-concept
Answer:
