A(n)___ is a statement of sales goals, usually based on sales volume alone.
a. breakeven statement
b. trend analysis
c. order forecast
d. account report
e. quota
Answer:
The Nest is a retail store owned and operated by an interior designer. The markup on all
items in the store is 100 percent over cost (or double the cost). In this case, we would
say the designer uses:
a. keystoning.
b. target ROI pricing.
c. break-even pricing.
d. marginalizing.
e. double sourcing.
Answer:
Social media:
a. cannot be compared to traditional advertising in any meaningful way.
b. is thought of by most people as any tool or service that assists conversation.
c. has less sophisticated ways of measuring how marketers meet and interact with
consumers than traditional advertising.
d. offer more one-to-one ways to meet consumers than traditional marketing media.
e. has not yet had a major impact on the way marketing works.
Answer:
SMS is different from MMS in that:
a. SMS allows the attachment of multimedia to text messages.
b. SMS is designed specifically for viewing and navigation on mobile devices.
c. MMS allows the attachment of multimedia to text messages.
d. MMS is designed specifically for viewing and navigation on mobile devices.
e. SMS and MMS are actually identical marketing tools.
Answer:
The James Hardie Siding Company sells concrete siding. It was having little luck
targeting contractors because concrete siding is difficult to install and shows every flaw
if a house is incorrectly framed. So Hardie decided to target homeowners who wanted
the security of knowing their siding was guaranteed not to rot or crack for 50 years. In
terms of psychographic segmentation, the siding company used the ______variable.
a. lifestyles
b. motives
c. benefits
d. demographic
e. personality
Answer:
Kule, Inc. produces three different lines of car racks for transporting large, bulky items.
Total company net annual profit = $40,000 Included in the cost of goods sold is $12,000
of annual rent (a fixed cost) that is distributed equally among the three product lines. As
a consultant to Kule, will you recommend that it drop the luggage rack line?
a. No, dropping the line will actually decrease overall net profits.
b. Yes, dropping the line will increase company net profits.
c. No, dropping the line will result in increased fixed costs.
d. Yes, dropping the line will reduce joint costs.
e. Yes, dropping the line will reduce cost of goods sold and increase revenues.
Answer:
Worldwide, there are almost _____mobile phones in use, _____of which are
smartphones.
a. 3 billion; 47 percent
b. 4 billion; 37 percent
c. 5 billion; 27 percent
d. 6 billion; 17 percent
e. 7 billion; 7 percent
Answer:
A local grocer recently began grouping its customers into specific groups based on what
they bought and when they shopped. The grocer then began to schedule shipments of
specific items based on these customer segments and to offer different promotions to
different shopper groups. This is an example of CRM.
a. True
b. False
Answer:
____ specifies the research questions to be answered, how and when the data will be
gathered, and how the data will be analyzed.
a. A secondary data use plan
b. The research collaborative plan
c. An autonomous director
d. The research design
e. The sampling plan
Answer:
Redbox
Movie DVD sales represent a $16 billion market, and rentals make up another $7.5
billion. Naturally, production studios would prefer consumers purchase DVDs rather
than rent them. Production studios like Twentieth-Century Fox, Warner Bros., and
General Electric refused to sell new releases to Redbox, a DVD vending machine
company, until almost a month after new releases arrived in stores. Redbox, the
ubiquitous DVD rental red kiosks found in and outside of convenience stores, grocery
stores, drugstores, fast-food restaurants, and Walmart, is cutting in on production
companies’ profits. These studios are tangled in lawsuits with Redbox. Sony,
Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and
Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in
operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering
the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by
allowing NCR Corporation, known for ATM machines, to license its name to place
Blockbuster Express kiosks in similar types of locations.
Refer to Redbox. Production studios distribute DVDs in grocery stores, drugstores,
discount stores, entertainment stores, and vending machines like Redbox. Which level
of distribution intensity does this represent?
a. Intensive
b. Extensive
c. Product focused
d. Market focused
e. Exclusive
Answer:
Unsought products are often sold through:
a. aggressive personal selling.
b. highly persuasive advertising.
c. direct mail.
d. direct-response advertising.
e. all of the above.
Answer:
One facet of marketing is that it is:
a. an approach that focuses on maximizing sales
b. a short-term oriented approach to profit maximization
c. an approach that requires diversity
d. a philosophy that stresses customer satisfaction e. independent of value creation
Answer:
The core service is the most basic benefit the consumer is buying.
a. True
b. False
Answer:
Because many services involve a process of continuous interaction between the service
organization and the customer, _____ marketing is an important strategy.
a. interactive
b. relationship
c. patronage
d. nonprofit
e. affiliation
Answer:
The Coca-Cola Company has over 450 brands in over 195 countries. According to their
Web site, their products range from Samurai, an energy drink available in Asia to Vita,
an African juice drink. It uses ____ segmentation.
a. geographic
b. economic
c. demographic
d. usage-rate
e. multipositioning
Answer:
The process of converting applications for new technologies into marketable products is
called:
a. basic research
b. product modification
c. marketing development
d. product development
e. correlation analysis
Answer:
A Brazilian manufacturer of solar cells used as a renewable source of energy in all types
of structures would like to begin distribution and sales in the United States, Canada, and
Mexico. The manufacturer has hired you to investigate NAICS data for such products in
North America. What is the NAICS system? What are some of the benefits of using this
system?
Answer:
A ____ channel is commonly used for low-cost consumer items that are frequently
purchased, such as candy, cigarettes, and magazines.
a. retailer
b. agent/broker
c. industrial distributor
d. producer
e. wholesaler
Answer:
The screening and concept testing stage of the new-product development process is
used to:
a. eliminate undesirable ideas and predict consumer acceptance
b. refine the promotion campaign to be used with the new product
c. determine the potential profits to be gained from the new product
d. determine how long the test market should be run
e. generate new-product ideas
Answer:
____ integration is the ability of two or more companies to develop social connections
that serve to guide their interactions when working together.
a. Relationship
b. Social
c. Customer
d. Materials and service supplier
e. Technology and planning integration
Answer:
When many consumers think of adhesives, they think of 3M because it makes so many
kinds of adhesives used in the home. However, the world’s largest adhesive producer is
Henkel Consumer Adhesives, maker of Loctite and Duck brand duct tape. 3M and
Henkel are part of each other’s ______ environment.
a. competitive
b. economic
c. social
d. marketing mix
e. legal and political
Answer:
In which logistical component of the supply chain will you find distribution resource
planning (DRP) a common feature?
a. Production scheduling
b. Transportation
c. Order processing
d. Materials handling
e. Inventory control
Answer:
Shane had every reason to believe that the antacid he purchased would relieve his
stomach problems if he followed the directions on the box. This is an example of a(n):
a. implied warranty.
b. functional label.
c. persuasive label.
d. express warranty.
e. universal warranty.
Answer:
Brand loyalty can:
a. increase product diffusion
b. encourage competition
c. shorten the amount of time a product spends in the maturity stage
d. help ensure repeat sales
e. sell a bad product
Answer:
A particular segment of the business market includes those individuals and
organizations that purchase goods and services for the purpose of making a profit. They
achieve this goal by using purchased goods and services to make other goods, to
become part of other goods, or to facilitate the daily operations of the organization. This
group is called the _____ segment of the business market.
a. institution
b. reseller
c. wholesaler
d. producer
e. government
Answer:
AmericanGirlDoll
The American Girl catalog began as a concept to introduce today’s girls to those who
lived in the past. Each historically accurate doll is carefully crafted and dressed and has
books to describe her life. For example, Kristen is an 1854 pioneer girl who is growing
up in Minnesota. Her story begins with her long sea voyage from Sweden. The basic
doll, dressed in a calico dress and striped apron plus the hardcover story of how she got
to Minnesota, costs $90.00. Six more hardback books of Kristen’s life are available for
$74.95. Kristen’s nightgown costs $20.00, and a matching one for the doll owner is an
additional $38.00. Buy both together and the price is only $50.00. A hand- painted
wooden bed and trunk for Kristen are available for $213.00. Shipping costs vary with
the price of the merchandise ordered.
Refer to American Girl Doll. What is the revenue to American Girl if it sells 20 basic
Kristen dolls?
a. $90.00
b. $100.95
c. $427.95
d. $1,800.00
e. $3,600.00
Answer:
Shopping bots:
a. encourage a more creative use of advertising.
b. link manufacturers, suppliers, and customers.
c. create opportunities for prestige pricing.
d. search the Web for the best price.
e. create inelastic demand.
Answer:
Ritz-CarltonHotels
Cesar Ritz, the founder of the original RitzCarlton, Boston, was known as the “king of
hoteliers and the hotelier to kings.” Today, there are more than 70 RitzCarlton hotels
spanning 24 countries with 38,000 employees. These are not typical employees, though.
They are described as “Ladies and Gentlemen serving Ladies and Gentlemen.”
Employees participate in an intensive orientation program and recertification programs
throughout their careers with the company, and many are allowed $2,000 to fix a guest’s
problem on the spot without managerial approval. So renowned is the Ritz way of doing
business that the company offers a Leadership Center for executives and managers of
other companies to learn and implement the Ritz way of customer service. But it
doesn”t stop with employees. RitzCarlton hotels recently launched “Give Back
Getaways” in 2008 that allow guests to volunteer in locales where they are vacationing.
The hotel also offers “Vow to Help Others,” which is a program that donates a portion
of a wedding couple’s reception costs to those in need. The chief operating officer’s
words sum up Ritz Carlton’s philosophy best: “If we really do our job, we really don”t
need sales anymore. Satisfied guests are your advertising.”
Refer to RitzCarlton Hotels. A guest’s suitcase was lost while in the care of hotel
employees, and that guest needed his suit for an important business meeting. The desk
clerk took the guest to a local mall to purchase clothing and shoes totaling $850. The
fact that RitzCarlton employees have the authority to solve customers’ problems quickly
illustrates that these employees are given:
a. authority training
b. customer value giving
c. cross-utilization
d. teamwork
e. empowerment
Answer:
Keystoning is:
a. the practice of marking up prices by 100 percent.
b. a method used for determining the point of elasticity.
c. a plan for reducing marginal costs.
d. the practice of maintaining variable costs at one-half of total fixed costs.
e. a method of changing consumers’ perceptions about price.
Answer:
According to the AIDA concept, the first step an advertiser must take is to gain the
consumers’:
a. attention.
b. attitude alignment.
c. action.
d. adaptation.
e. adoption.
Answer:
Which of the following statements does not describe ethics?
a. Ethics are the moral principles or values that generally govern the conduct of an
individual.
b. Ethics is the standard of behavior by which conduct is judged.
c. Morals are a foundation for ethical behavior.
d. Ethical values are situation specific and time oriented.
e. Ethics occur naturally, and cannot be taught.
Answer:
Compare and contrast the three types of product modifications and give an example of
how each could be implemented.
Answer:
Assume that you are the VP of marketing in a medium-sized company that includes the
following departments: sales, marketing, finance, purchasing, data processing, and
production. The sales force manager has mentioned to you that one of the salespersons
thought a Web-based sales force automation service would help the sales force become
more efficient. The sales force manager requests that this service be purchased.
Illustrate the six buying decision roles that would take place for the purchase of this
service.
Answer:
What is a promotional allowance? What is the difference between a promotional
allowance and a functional discount? Give two specific examples of promotional
allowances.
Answer:
Services have four unique characteristics that distinguish them from goods. Name and
briefly define each of these four characteristics. Use the example of an airline to help
describe each of the four characteristics.
Answer:
Discuss the financial implications of the returns management process.
Answer:
List and briefly describe the five different roles various family members can play to
influence the purchase decision-making process when deciding on a family vacation.
Answer:
The daily demand for bottled water is 35 bottles when the price is set at $1. However, if
the price is raised to $5, the demand is only five bottles. The bottled water producer is
willing to supply 40 bottles if the price is set at $5 per bottle but will only supply 10
bottles if the price is set at $2. Draw the supply and demand curves for the water bottles
on the graph below. Label each curve and each axis. At what level does equilibrium
occur? What are the areas of surplus and shortage?
Answer:
Discuss the three product-related distinctions between business and nonprofit
organizations.
Answer:
For every home built by Habitat for Humanity, Whirlpool Corporation has given and
continues to give free kitchen appliances to the deserving family. At first Whirlpool
gave the appliances with no promotion, then Whirlpool began talking about its
philanthropy in its advertising campaigns. Is this unethical behavior according to the
pyramid of social responsibility?
Answer:
Discuss how consumers use the price”quality relationship to evaluate goods and explain
how marketers can take advantage of this consumer response.
Answer:
How has the use of supply chain management resulted in a radical reformulation of
traditional marketing, production, and distribution functions?
Answer:
Describe some basic characteristics of the African American market.
Answer:
What is integrated marketing communications (IMC)? How is IMC implemented?
Answer:
What is a podcast? How are they used?
Answer:
List three reasons why the concept of integrated marketing communications has been
growing in popularity.
Answer:
There are several important reasons to study marketing. Name three of these reasons.
Answer:
List and briefly describe five of the many functions commonly performed by public
relations departments.
Answer: