Estimates of sales are an important component of the business analysis stage of the
new-product development process.
a. True
b. False
In considering the viability of potential international markets for Pepsi products,
PepsiCo is advised to take into account , which provides insight into market potential.
a. gross domestic product per capita
b. gross domestic product
c. the quantity of exports
d. the quantity of imports
e. total consumer income
Budweiser may choose to segment its market based on heavy, moderate, and light
drinkers of its alcoholic beverages. This is an example of market segmentation based
on:
a. behavioristic variables.
b. benefits.
c. lifestyles.
d. psychographic variables.
e. demographic variables.
A physical product you can touch is a(n):
a. service.
b. good.
c. idea.
d. concept.
e. philosophy.
Having recording biases and collecting only descriptive information are two of the
primary drawbacks of .
a. statistical interpretation
b. mail surveys
c. observation
d. personal interviews
e. experimentation
Anything that reduces the accuracy and clarity of communication is known as:
a. distraction.
b. feedback.
c. interference.
d. discordance.
e. noise.
__________involves developing and maintaining adequate assortments of products to
meet customers’ needs.
a. Just-in-time
b. Order processing
c. Inventory management
d. Merchandise stocking
e. Logistical management
Scenario2.1
Use the following to answer the questions. Southwest Airlines has a history of being
able to retain its employees due to the atmosphere and culture of the company.
Employees have been known to dress up in costume on an airplane, engage in “games”
with the passengers, and generally provide a fun atmosphere for traveling. While other
airlines have low rates of customer satisfaction, Southwest tends to maintain a high
rating with its customers. Recent gas price hikes have caused most airlines to charge for
checked luggage and to fill every flight to its maximum, adding to the negative
experience of airline travel. Southwest keeps its costs low through several methods, one
being that they do not serve meals on flights, or provide pre-boarding passes. The
typical flight is two hours or less and occurs between several selected cities rather than
flying to practically anywhere in the country. Southwest is known for its low fares, its
dependability, and its on-time flights.
The fact that Southwest Airlines has a history of being able to retain its employees is a
in its SWOT analysis.
a. weakness
b. strength
c. threat
d. opportunity
e. obstacle
Systems such as PRIZM and Acorn provide companies with lifestyle and demographic
information about neighborhoods throughout the United States. This information is
used to aid:
a. behavioristic segmentation.
b. geodemographic segmentation.
c. market density analysis.
d. demographic segmentation.
e. geographic segmentation.
Generally, promotion mixes for companies with extremely limited promotional budgets
tend to concentrate on:
a. national advertising.
b. publicity.
c. sales promotions.
d. personal selling.
e. distributor incentives.
According to the Boston Consulting Group, marketers may classify their products as all
of the following except
_____.
a. dogs
b. convenience products c. question marks
d. stars
e. cash cows
Scenario 18.1
Use the following to answer the questions.
The Toyota Corporation is developing its promotional plan for the coming year and is
considering several types of advertising to communicate its messages. Toyota will
likely advertise its new vehicle, the Venza, on TV, on its website, in major national
magazines, and through Facebook. It is possible that the ads could focus on the features
of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising
that can be considered are ads that feature all of the Toyota brands in a single ad, while
mentioning only the Toyota brand and its company’s strengths. Finally, Toyota will
probably continue to advertise updates of its cash cow brands, the Camry and the hybrid
versions of its SUVs. Advertisements such as the one proposed above for the Camry
and hybrid SUVs, are most likely an example of .
a. product advertising
b. comparative advertising
c. competitive advertising
d. institutional advertising
e. reminder advertising
Primary demand is defined as the:
a. demand for a product category.
b. demand for a new product.
c. consumer awareness of a product category.
d. extending brands with new product concepts.
e. demand for a particular brand.
An organization’s obligation to maximize its positive impact and minimize its negative
impact on society is known as social accountability.
a. True
b. False
The extent of Raytheon’s participation in global business is selling the batteries it
manufactures to companies in Spain. In this case, Raytheon is a(n)_____ .
a. trading company
b. importer
c. exporter
d. franchiser
e. contract manufacturer
Demonstrations in retail stores are not used widely because they are expensive.
a. True
b. False
Jamal has just finished collecting data about the texting habits of students during their
lunch hour. He used both online surveys to ask the students about their texting behavior,
as well as observational techniques in the cafeteria. What is the next step in the
marketing research process for Jamal to begin?
a. Reporting research results
b. Selecting the research method
c. Interpreting research findings
d. Designing the research project
e. Refining the research issue
It is not important to consistently enforce standards and impose penalties or punishment
on those who violate codes of conduct
a. True
b. False