Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men’s and women’s razors and electric hair trimmers, had
little reason to become involved in the global arena. But after acquiring Wellman
Enterprises, whose largest division engages in a licensing agreement with a German
firm to produce women’s hosiery, managers at Selman & Saks wondered whether a
company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman’s licensing agreement in great detail.
Even after seeing the benefits Wellman achieved with the licensing agreement,
managers decided that Selman & Saks would target the French market merely via
exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair
trimmers entered France. For six months, sales were mediocre. But after that, sales
suffered. Opinions varied among numerous managers as to the cause of the failure.
“Who knows the local market better than people who live there?” was a comment heard
throughout Selman & Saks. “Maybe we needed an alliance with a French firm, or a
licensing agreement, before racing to get there.”
Selman & Saks offered the same razors and trimmers in France as in the United States.
Selman & Saks is an example of a ________.
A) product adaptation
B) communication adaptation
C) product invention
D) straight product extension
E) standardized global marketing plan
Answer:
Smart Shoppers, an online store that delivers its products to homes in and around
California, recently switched its entire fleet to biodiesel trucks that run on used cooking
oil rather than gas. Smart Shoppers has most likely developed a(n) ________.
A) vertical marketing channel
B) green supply chain
C) multitiered marketing channel
D) intermodal transportation system
E) hybrid distribution system
Answer:
Marketing stimuli include which of the following?
A) economic stimuli
B) price stimuli
C) technological stimuli
D) social stimuli
E) cultural stimuli
Answer:
A ________ consists of all the product lines and items that a particular seller offers for
sale.
A) product mix
B) store brand
C) supply chain
D) value chain
E) line extension
Answer:
Which of the following would most likely be included in the written materials prepared
by PR professionals to reach and influence target markets?
A) employee code of conduct
B) annual reports
C) memorandum of association
D) advertisement jingles
E) white papers
Answer:
The market subsegment that a company exclusively caters to may dry up, or it might
grow to the point that it attracts larger competitors. This is why such companies practice
________.
A) multiple niching
B) mass marketing
C) overall cost leadership
D) low-price strategies
E) dumping
Answer:
Which of the following is true with regard to store brands?
A) Store brands have been declining in popularity and strength for more than two
decades.
B) Store brands are also known as national brands.
C) Store brands are created and owned by resellers of a product or service.
D) Increasing consumer distrust toward store brands has led to a store-brand slump.
E) Store brands are growing far slower than manufacturer’s brands.
Answer:
What is most likely a strategic benefit of the existence of competitors?
A) Competitors seldom lead to product differentiation.
B) Competitors help legitimize new technologies.
C) Competitors exclusively serve more-attractive segments.
D) Competitors fracture the target market.
E) Competitors decrease the total demand.
Answer:
A ________ is a small store, located near a residential area that is open long hours
seven days a week and carries a limited line of high-turnover goods.
A) convenience store
B) chain store
C) department store
D) supermarket
E) specialty store
Answer:
Electrola Inc. is currently designing a new product line with the goal of making each
product easy to recover, reuse, or recycle. Electrola Inc. hopes to recover many of these
products when they reach the end of their life cycle and reuse their components in new
products. Electrola Inc. is in the ________ stage of environmental sustainability.
A) pollution prevention
B) new clean technology
C) product stewardship
D) beyond greening
E) sustainability vision
Answer:
Home Depot and PetSmart are examples of ________.
A) factory outlets
B) warehouse clubs
C) superstores
D) off-price retailers
E) category killers
Answer:
Business demand that ultimately comes from the demand for consumer goods is known
as ________ demand.
A) derived
B) negative
C) primary
D) consumer
E) elastic
Answer:
Market niching is profitable because the company ________.
A) copies or improves on the leader’s products and programs, usually with much less
investment
B) bears the cost of developing new products and markets, expanding distribution, and
educating the market
C) knows the needs of the target customer segment better than other firms that casually
attempt to sell to the same segment
D) either keeps its manufacturing costs and prices low or its product quality and
services high
E) can achieve economies of scale much faster by selling the same product to the global
market
Answer:
A(n) ________ is a person’s relatively consistent evaluations, feelings, and tendencies
toward an object or idea.
A) lifestyle
B) motive
C) belief
D) attitude
E) perception
Answer:
Envirosax reusable shopping bags are stylish and affordable, and they eliminate the
need for plastic store bags. Envirosax reusable shopping bags most likely fall in the
category of ________ products.
A) deficient
B) pleasing
C) mature
D) desirable
E) unpleasing
Answer:
Shoez Inc., a manufacturer of shoes, has recently launched a brand of sturdy shoes ideal
for hiking and other outdoor activities. Which of the following brand personalities
could be best associated with the new brand?
A) sincerity
B) excitement
C) sophistication
D) competence
E) ruggedness
Answer:
The break-even volume is the point at which ________.
A) the total revenue and total cost curves intersect
B) demand equals supply
C) the production of one more unit will not lead to increase in demand
D) the company can pay off all its long-term debt
E) a firm exceeds the sales forecast
Answer:
With accumulated production experience and a higher volume of production, companies
not only become more efficient but also ________.
A) gain economies of scale
B) incur higher overhead costs
C) create derived demand in the market
D) spend more per unit of produced output
E) tend to routinely spend less on inputs
Answer:
Logos, uniforms, brochures, and company trucks are all examples of ________
materials that can be used to help a company create a visual image which the public can
immediately recognize.
A) direct marketing
B) social marketing
C) public service
D) corporate identity
E) buzz marketing
Answer:
Which of the following is most critical for successful niching?
A) catering to global markets
B) buzz marketing
C) follow-up
D) specialization
E) mass appeal of one idea
Answer:
After a research instrument is selected, the next step in the marketing research process
is to ________.
A) select a sampling method
B) interpret the research findings
C) implement the research plan
D) evaluate alternatives
E) select a research approach
Answer:
You receive a report that 68 percent of your target market has been exposed to your ad
campaign during a given period of time. Which of the following aspects of media
selection is represented by this information?
A) frequency
B) reach
C) impact
D) engagement
E) qualitative value
Answer:
Which of the following is most likely gained by stores that cluster together?
A) decreased competition
B) increased customer pulling power
C) compliance with franchise agreements
D) creation of retailer cooperatives
E) standardization of the service mix
Answer:
What action do consumers continue to perform even though a majority are concerned
with identify theft?
A) shopping online
B) searching for product information
C) reading reviews from friends on Facebook
D) sending and responding to e-mail messages
E) watching videos
Answer:
Runner Sprintz, a particular brand of shoes, has its own Web site, myrunnersprintz.com
that welcomes consumers to “the Runner Sprintz Century,” invites readers to post their
Runner Sprintz stories, and offers a wide variety of shoes for direct purchase. The site
even allows customers to individually design their own shoes and share them among
their circles on the Web site. Which of the following best describes
myrunnersprintz.com?
A) Web directory
B) blog
C) corporate Web site
D) digital catalog
E) branded community
Answer:
The Wii system, developed by Nintendo, with its intuitive motion-sensitive controller
and interactive games, appealed not only to teen boys but also to their sisters, moms,
dads, and even grandparents. This is a successful example of ________ marketing.
A) consumer-oriented
B) innovative
C) customer-value
D) societal
E) sense-of-mission
Answer:
The boom in Internet marketing has created a new set of social and ethical issues.
Critics worry most about ________.
A) accessibility
B) puffery in advertising
C) online privacy issues
D) sustainability
E) issues pertaining to efficiency
Answer:
You want to advertise your new product. You want good mass marketing coverage and
low cost per exposure. You also want to combine sight, sound, and motion and make the
advertisement appealing to the senses. You should choose ________ as your advertising
media.
A) newspaper
B) radio
C) magazines
D) television
E) direct mail
Answer:
________ are a type of SBU that often require heavy investments to finance their rapid
growth.
A) Cash cows
B) Question marks
C) Stars
D) Dogs
E) Bears
Answer:
________ is a type of service offered by those retailers who serve customers that are
willing to perform their own “locate-compare-select” process in order to save money.
A) Limited-service
B) Self-service
C) Full-service
D) Specialty-service
E) Wholesaling
Answer:
How do marketers respond to charges of planned obsolescence?
A) Consumers dislike constant style changes.
B) It promotes the all-American value of consumerism.
C) The product will eventually wear out anyway.
D) Most consumers are materialistic.
E) Consumers get tired of old goods.
Answer: