What is the first step in segmenting a market?
a. Set the segmentation goals
b. Choose a basis or bases for segmenting the market
c. Select a market or product category for study
d. Profile and analyze segments
e. Select target markets
Answer:
A keiretsuis a network of interlocking corporate affiliates.
a. True
b. False
Answer:
RockTenn
RockTenn produces packaging products. The company makes cartons that will hold a
dozen Dunkin” Donuts, waffle fries for Chik-fil-A, Gillette razors, Haagen-Daz ice
cream, express mail envelopes for FedEx, and much more. RockTenn business
fluctuates depending on consumer demand. As plastic products become more
expensive, companies turn to cardboard and paper to package their products.
Refer to RockTenn. A sales representative from a paper-producing company wants to do
business with RockTenn. The representative needs to locate the person who actually
negotiates the purchase, in other words, the _____ in the buying center.
a. influencer
b. gatekeeper
c. decider
d. purchaser
e. user
Answer:
All of the following are examples of products EXCEPT:
a. carton of milk
b. contact lenses
c. haircut
d. pair of shoes
e. All of the above are products.
Answer:
____ are trade alliances in which several countries agree to work together to form a
common trade area that enhances trade opportunities among those countries.
a. Boycotts
b. Regional unifications
c. Market groupings
d. Free trade nations
e. Expropriation members
Answer:
KarryLite, the manufacturer of lightweight suitcases with wheels, uses as its slogan,
“Takes the lug” out of luggage.” This slogan illustrates the use of ______segmentation.
a. geodemographic
b. benefit
c. functional
d. usage-rate
e. feature-based
Answer:
The advertising budgets of most nonprofits are too small to pay for the running of
public service advertisements to promote their programs, activities, or services.
a. True
b. False
Answer:
It is usually easier to change consumer beliefs about a service attribute than a product
attribute.
a. True
b. False
Answer:
Uniform delivered pricing is illegal because it discriminates against buyers who are
located close to the point of shipping because they pay the same amount as buyers
located far from the point of shipping pay.
a. True
b. False
Answer:
Many people find it difficult to peel hard-boiled eggs. Eggies is a kitchen gadget
designed to help make cooking hard boiled eggs quicker and easier. The product allows
customers to hard-boil eggs without the shell. Consumers simply crack an egg, pour it
into the plastic “Eggie,” boil, then twist to enjoy hardboiled eggs without the messy
peeling of the eggshell after they’re done. Eggies is using _______ segmentation.
a. usage-rate
b. demographic
c. geodemographic
d. competitive
e. benefit
Answer:
A U.S. executive had no idea that Germans tend to be very risk-averse. When the
executive arrived at a meeting in Berlin, he simply stressed the price of his firm’s
products without emphasizing their bottomline benefits, promoting the company’s
strong service support, or guaranteeing their effectiveness. As a result, the multimillion
dollar deal failed. The U.S. executive overlooked the importance of which
environmental factor?
a. Culture
b. Demographics
c. Natural resources
d. Economic development
e. Political structure
Answer:
A market segment is deemed to have substantiality if it contains a large number of
potential customers.
a. True
b. False
Answer:
Which of the following is a type of survey that involves interviewing business people at
their offices concerning individual products or services?
a. Place-based interviews
b. CLT interviews
c. Business panel surveys
d. Executive interviews
e. Professional interviews
Answer:
Business-to-business salespeople often use ____ to increase demand for one or more
products in a line. It is a discounting practice that is often done routinely without much
forethought.
a. decremental pricing
b. price lining
c. devaluation
d. price shading
e. consumer discounts
Answer:
When a product is in the growth stage of its product life cycle:
a. all elements of the promotional mix are equally important.
b. advertising and public relations are particularly important.
c. persuasive and reminder advertising is decreased.
d. personal selling is ineffective.
e. personal selling and sales promotions are the major elements of the promotional mix
used.
Answer:
During the ____ stage of the new-product development process, production starts,
inventories are built up, the product is shipped to distribution points, the sales force is
trained, and advertising and promotion begin.
a. commercialization
b. product testing
c. market analysis
d. product prototyping
e. simulated marketing
Answer:
The major characteristic that is used to differentiate among types of intermediaries is
whether they:
a. install exchange barriers such as location, time, and quantity
b. create specialization of labor
c. create economies of scale
d. take title to the products they sell
e. raise profit margins for independent middlemen
Answer:
CollegeDecision
Juan is a senior in high school and is deciding which university to go to after he
graduates. He has received several pieces of mail from local universities with
information on scholarship opportunities because he has a good GPA and a high ACT
score. He and his parents have visited several schools and have talked to advisors
regarding his chosen major of marketing. Juan is thinking about going to the local
community college where all of his friends are planning to go, but his parents want him
to go to a more prestigious school because they think he will get a better education
there.
Refer to College Decision. One person from whom Juan has sought advice is his school
guidance counselor, Mr. More. Mr. More is respected by students and parents alike and
knows a lot about the schools Juan is considering. Mr. More can be considered a(n):
a. influencer
b. decider
c. opinion leader
d. gatekeeper
e. market maven
Answer:
The ______ is an agency that prevents the use of unfair methods of competition in
commerce.
a. Federal Communications Commission
b. Commerce Department
c. Commission for Fair Trade
d. Federal Trade Commission
e. Sherman Antitrust Agency
Answer:
Vast differences in natural resources create all of the following EXCEPT:
a. potential for military intervention
b. shifts in wealth between nations
c. inflation and recession
d. global international dependencies
e. export opportunities for countries with no natural resources
Answer:
A product that is perceived as new by a potential adopter, whether the product is “new
to the world” or simply new to the individual, is called a(n):
a. innovation
b. diffusion
c. discontinuous product
d. laggard
e. simulated new product
Answer:
Several types of analysis are common to marketing research. Which one is the simplest?
a. One-way frequency counts
b. Statistical analyses
c. Cross-tabulations
d. Passive people meters
e. Scaled responses
Answer:
The debate over gay marriages is causing a great deal of furor, but it has done little to
deplete the importance of the affluent gay market to businesses. Georgia Pacific and
Mitchell Gold, a furniture manufacturer, are two companies that have implemented and
maintained marketing mixes designed to meet the needs of lesbians and gays. To these
companies and others, lesbians and gays are a desirable:
a. market sample.
b. target market.
c. perceived market.
d. functional market.
e. market base.
Answer:
EDI is often used to replace paper documents with electronic documents containing the
same information.
a. True
b. False
Answer:
Mattel, the world’s biggest toymaker, ordered 18 million toys made in China to be
recalled because of hazards such as the use of lead paint. Mattel’s ___ process allowed
it to handle the product recall efficiently.
a. order fulfillment
b. returns management
c. product commercialization
d. demand management
e. product fulfillment
Answer:
When Eurasia restaurant, serving Eurasian cuisine, first opened along Chicago’s
Michigan Avenue, its novelty brought many diners. However, it turned off the important
business lunch crowd, and sales went into decline. Before conducting any marketing
research to explain the declining sales, management needs to:
a. determine who will be most likely to respond to a survey.
b. select a market sample from everyone in the population.
c. define the problem to be researched.
d. develop a survey to find out exactly what’s wrong.
e. enumerate the decision factors.
Answer:
New products are important to a company for all the following reasons EXCEPT:
a. increased revenues
b. immediate profits
c. sustained growth
d. replacement of obsolete items
e. increased profits
Answer:
Price should not be used as a promotional tool.
a. True
b. False
Answer:
One way processed materials differ from component parts is that processed materials:
a. do not retain their identity in final products.
b. are always much cheaper than component parts.
c. have had some processing.
d. do not become part of a final product.
e. are usually unseen by the final user.
Answer:
One brand of tomato sauce advertises that the tomatoes it uses are processed within 24
hours of being picked to ensure product freshness. The fresh tomatoes it buys from
growers are examples of:
a. OEM parts.
b. raw materials.
c. component parts.
d. processed materials.
e. supplies.
Answer: