Segmentation variables are characteristics of individuals, groups, or organizations in a
total market.
a. True
b. False
The focal point of all marketing activities is its:
a. products.
b. marketing mix.
c. profits.
d. sales.
e. customers.
Reference pricing is:
a. listing the manufacturer’s suggested retail price on the price tag along with the store’s
lower price.
b. mentioning the price that other retailers charge for the same product on the display
for the product.
c. using a consumer’s internal perceptions of what the appropriate price should be to
help price a firm’s products.
d. pricing a product at a moderate level and positioning it next to a more expensive
model or brand.
e. using prices in advertising so that customers will have a point of reference when they
come to the retail facility.
Soft drink companies advertise that their products beat the competition in national
“taste tests,” and they refer to the rival brands by name. This type of advertising is best
described as .
a. pioneer
b. advocacy
c. comparative
d. defensive
e. selective
Channel captains may establish channel policies and coordinate development of the
marketing mix.
a. True
b. False
Which of the following would notbe a customer cost considered in the determination of
product value?
a. Product’s purchase price
b. Time spent purchasing the product
c. Effort spent purchasing the product
d. Benefits received in the exchange for the products
e. Risk of purchasing the product
Scenario3.3
Use the following to answer the questions. Hershey Foods was founded in the
nineteenth century by Milton Hershey, who had a strong ethical value
system always show integrity, be honest, and respect others. Hershey felt it was
important to provide high-quality goods and services of real value at competitive prices
that provide an adequate return on investment. He also founded the Milton Hershey
School, operating today as a cost-free, private home and school dedicated to helping
children with social needs and limited resources. The company also focuses on
environmental issues, such as reducing waste by 360,000 pounds annually by
redesigning Hershey’s Syrup caps. Hershey Foods has an ethics compliance program
that includes a code of ethics and training, guidelines for handling legal and ethical
issues, an
800 number for assistance with ethical issues, and support from supervisors and human
resource managers in dealing with ethical issues. However, in the last few years,
Hershey has been criticized by several advocacy groups concerning the sourcing of its
chocolate from West Africa where many of the companies use child labor. While
Hershey is the largest chocolate candy producer in America, it lags behind other major
chocolate producers with regard to certifying its chocolate as child labor-free.
The fact that the Hershey company has recently reduced its waste by 360,000 pounds
through a packaging redesign is evidence of its focus on:
a. a philanthropic culture.
b. an ethical culture.
c. social responsibility.
d. the legal climate.
e. the economic environment.
Personal selling is generally the most expensive element in the promotion mix.
a. True
b. False
Goodyear allows companies like Sears and Discount Tire to distribute and discount its
tires. This action significantly increases the possibility of channel__________with
independent Goodyear dealers.
a. understanding
b. power
c. leadership
d. communication
e. conflict
Frederick Griffith of Griffith’s department stores tells his marketing director that he is
tired of the constant price- centered advertising by the firm’s agency. “We have the best
customer service in town, and I feel that is what we should be hanging our hats on,” he
states. This statement is most appropriate for use in which of the following stages of
campaign development?
a. Determining the appropriations
b. Creating the platform
c. Identifying the target
d. Defining objectives
e. Developing the media plan
Scenario1.1
Use the following to answer the questions. Greensprings Cemetery in upstate New
York, offers a full-service funeral and burial that is non-toxic to the environment. All
materials used in the burial are natural and will decompose with no negative impact.
Greensprings’ service is relatively new in the United States, but services of this type are
common in Great Britain. A typical burial in Greensprings’ cemetery includes a casket
made from bamboo, wicker, paper, or other natural material. There are no headstones of
stone or concrete that will detract from the landscape, but trees and plants as “markers”
are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to
about $6,000 at most traditional cemeteries. Although business was slow at first,
Greensprings is now experiencing an increase in the number of burials, due to referrals
and a newly-developed website. The owners of Greensprings were previously in the
cemetery business, and are active conservationist and wanted to make their business
more sustainable. After conducting research and finding that there were natural burial
sites in Great Britain, they wanted to provide an alternative to other
environmentally-conscious Americans like themselves. A new website has helped
Greensprings’ pre-planned funeral business grow. These would come under which of the
following marketing mix variables?
a. Product
b. Price
c. Distribution
d. Promotion
e. Promotion and price