The producers of C & H Cane Sugar sell the product in five-pound bags, one-pound
bags, and one-pound boxes.
When developing its advertising strategy, C & H will most likely use a(n)_____ market.
a. undifferentiated
b. differentiated
c. product strategy
d. cost-benefit
e. demographic approach in defining a target
Companies that incorporate ethics and social responsibility into their strategic plans are
likely to face:
a. improved marketing performance.
b. increased lawsuits.
c. negative publicity.
d. reduced costs.
e. disappointed shareholders.
Amtrak is considering two pricing strategies for its service. One is to price its train
tickets so that it is less expensive to travel on weekends than during the week when
there is business travel, which illustrates_________pricing.
The second is to price its train tickets so that the further away the travel date, the greater
the discount, which is best described as__________.
a. demand-based; secondary market pricing
b. demand-based; differential pricing
c. demand-based; periodic discounting
d. cost-plus; secondary markup
e. cost-plus; periodic discounting
A quota is the suspension, by a government, of trade in a particular product.
a. True
b. False
Scenario 4.1
Use the following to answer the questions.
Because of the development of optical scanners and cable television, marketing
researchers can now test the effectiveness of advertising more precisely. Volunteers in a
minimum of six cities are offered food discounts in return for allowing marketing
research firms to monitor grocery purchases and send trial commercials to their homes
through cable television.
The research subjects shop only at stores equipped with UPC scanners, and their
purchases are identified by a special card. Respondents are also told that some of the
commercials they see on cable television may differ from those seen by their neighbors.
Buying patterns are then compared. For example, Kashi cereals tested a Crunchy Wheat
promotion using this system. Half of the 5,000 participating homes in one city saw a
commercial announcing the promotion; the other half saw a commercial that did not
mention the promotion. Kashi used scanner data to evaluate the promotion’s success and
offered the commercials nationwide.
In which stage of the marketing research process did the researchers compare the
average sales of Crunchy Wheat for the group that saw the promotion with the average
sales for the group that did not see the promotion?
a. Defining and locating problems
b. Reporting research findings
c. Developing hypotheses
d. Collecting data
e. Interpreting research findings
Although telephone surveys can be conducted very quickly, a major limitation is .
a. the inability to build rapport with respondents
b. the difficulty in asking probing questions to every respondent
c. that only a few companies prefer this survey method
d. that only a small portion of the population likes to participate
e. the high expense involved when compared to in-home interviews and other forms of
surveys
Online fraud includes any attempt to conduct dishonest activities online, with the
exception of tricking consumers into releasing personal information.
a. True
b. False
Exterior and interior characteristics such as layout, displays, color, and lighting are all
elements of a store’s_________.
a. services
b. atmospherics
c. location
d. specialty
e. quality
The arbitrary approach to setting an advertising budget often results in inappropriate
spending of the firm’s resources.
a. True
b. False
Which of the following statements about non-price competition is false?
a. Companies that use non-price competition do not need to keep track of their
competitor’s prices.
b. A company must be able to distinguish its brand through some unique feature in
order to successfully engage in non-price competition.
c. A firm using non-price competition can build loyalty to both its company and its
products.
d. When using non-price competition, a company should promote the distinguishing
characteristics of its brand.
e. Companies that use non-price competition can distinguish their products through
promotion and packaging.
Individual influencing factors refer to:
a. personalities of an organization’s vendors.
b. uncontrollable environmental forces.
c. reputation of the organization.
d. personal characteristics of individuals in the buying center.
e. activities of suppliers.
As Lisa eats her morning bowl of Golden Grahams cereal, she reads about the calories,
fats, carbohydrates, and vitamins she is ingesting. This information is required by the .
a. Nutrition Labeling Act
b. Food and Drug Administration
c. Fair Packaging and Labeling Act
d. Nutritional Content Disclosure Act
e. Federal Trade Commission
A group of protesters carries signs encouraging people to boycott The Farmer’s Market,
a small grocery store in an urban area. The protesters claim that Farmer’s takes unfair
advantage of elderly and minority consumers by charging them as much as 20% higher
prices than other locations in the suburbs. This protest is considered a part
of:
a. cultural diversity movement.
b. civil rights movement.
c. urban unrest cycle.
d. procompetitive movement.
e. consumerism movement.
In the long run, business demand becomes totally unrelated to consumer demand.
a. True
b. False
Labeling is used to perform only two roles: to promote and to inform.
a. True
b. False
The fourth stage in the business buying decision process is that of searching for
products and suppliers.
a. True
b. False
If you buy McDonald’s French fries in Fort Collins, Colorado, and later buy
McDonald’s French fries in College
Station, Texas, you expect them to be of the same quality. This is referred to
consistency of quality.
a. True
b. False
International Office Supplies wholesaler charges different prices to its various
customers without any legal justification. This company is in violation of the:
a. Sherman Antitrust Act.
b. Wheeler-Lea Act.
c. Lanham Act.
d. Federal Trade Commission Act.
e. Robinson-Patman Act.
Which of the following laws was enacted by Congress in 1988 to strengthen trademark
protection?
a. Brand Protection Act
b. Lanham Act
c. Trademark Infringement Act
d. Trademark Law Revision Act
e. U.S. Patent and Trademark Act