Apple launched the iPad in 2010, and unit sales reached an astonishing 40 percent
market share in the tablet industry by 2013, leading both Samsung’s Galaxy (18
percent) and Amazon’s Kindle (4 percent). Global tablet unit sales are expected to more
than double by 2016 as consumers continue to switch from desktops and laptop PCs.
Currently, Apple’s iPad SBU appears to be a __________.
A. question mark
B. star
C. hedgehog
D. cash cow
E. dog
Answer:
An advantage of the straight salary compensation plan is that it
A. provides an incentive to expand sales volume.
B. can be easily adapted to changes in the economy.
C. doesn’t include nonselling activities that take time away from selling.
D. allows salaries to be lower.
E. is easy to administer.
Answer:
Several market research companies pay households and businesses to record all their
purchases using a paper or electronic diary, which allows for an economical way to
collect consistent data over time. These data are referred to as __________.
A. sponsored data
B. data reciprocity
C. syndicated sampling
D. syndicated panel data
E. data journaling
Answer:
A palindrome is a word or phrase that reads the same whether read from the right or
from the left (e.g., madam). Originally, Marshall had never recalled hearing the term.
However, when he read about palindromes for his English class, he saw three examples
of the term within a matter of days. This is most likely the result of
A. selective retention.
B. selective attention.
C. selective intuition.
D. stimulus discrimination.
E. selective perception.
Answer:
If sales revenues for Starbucks VIA Ready Brew instant coffee sold to U.S. consumers
increased as a result of a slight price increase of $0.25 per pack, it would be using a
__________ strategy.
A. product development
B. market development
C. market penetration
D. diversification
E. market saturation
Answer:
Pizza Hut’s website customization is achieved in several ways, but the primary utility is
to simplify ordering. For customers who have already registered, there are several
personalization options, including rapid ordering called Express Checkout – a feature
that’s based on __________.
A. offering the greatest selection
B. speed up the delivery process
C. saved preferences
D. offering the best value for the price
E. create strong customer relationship
Answer:
Because __________ collect precise information about preferences and behavior of
individual buyers, a company becomes more knowledgeable about a customer and
better able to anticipate and fulfill that customer’s needs.
A. wikis
B. choiceboards
C. social media
D. cookies
E. collaborative filters
Answer:
An example of the ideal performance measure for social media advertising is one that
__________.
A. attracts unique visitors
B. adds registered users
C. builds awareness
D. ties actual sales revenues to the cost of the ad
E. generates brand buzz
Answer:
Direct marketing has the advantage of being __________ to match the needs of specific
target markets.
A. priced
B. uniform
C. customized
D. engaged
E. integrated
Answer:
Price Premium Marketing Dashboard
The Price Premium Marketing Dashboard above shows the dollar and unit market
shares for selected energy drinks. What is the price premium for Red Bull in 2010?
A. -12.5%
B. -7.5%
C. -5.3%
D. 0%
E. 15.2%
Answer:
Rock and Roll Hall of Fame Photo
What pricing strategy did the architectural firm use to set the construction price for the
Rock and Roll Hall of Fame, which is shown in the photo above?
A. cost-plus pricing
B. customary pricing
C. standard markup pricing
D. yield management pricing
E. prestige pricing
Answer:
Which of the following is a basis used to segment U.S. organizational markets?
A. geographic
B. psychographic
C. income
D. prospects
E. education
Answer:
Toyota employs all of the following principles and practices as part of The Toyota Way
business philosophy EXCEPT:
A. continuously improve business processes and products.
B. empower individuals and teams.
C. respect people.
D. build trust.
E. provide personalized and customized products.
Answer:
Men’s Wearhouse (MW) caters to the man who doesn’t necessarily enjoy shopping. Its
stores are in free-standing locations (not inside the mall) so that customers can get in
and out quickly. Additionally, the MW targets the budget-conscious consumer with suit
prices ranging from $150 to $850. The location of its stores and its pricing strategy both
are part of MW’s
A. competitive advantage.
B. core values.
C. core benefit proposition.
D. marketing edge.
E. viable mission.
Answer:
Competitive advertisements that show the relative strength of one brand over another
are referred to as __________ advertisements.
A. advocacy
B. competitive
C. reminder
D. comparative
E. differentiation
Answer:
Organizational culture refers to
A. the personal moral and ethical codes of ethics of its top management.
B. a written statement expressing its goals and objectives to be achieved through
enacting a comprehensive strategic plan.
C. the fundamental, passionate, and enduring principles that guide its conduct over
time.
D. the ethos of an organization that excludes its core values.
E. a set of values, ideas, attitudes, and norms of behavior that is learned and shared
among the members of an organization.
Answer:
SBUs with a high share of high-growth markets that may not generate enough cash to
support their own demanding needs for future growth are referred to as __________.
A. dogs
B. cash cows
C. question marks
D. stars
E. hedgehogs
Answer:
Which of the following statements is most accurate?
A. For some products, price influences the perception of overall quality, and ultimately
value, to consumers.
B. A consumer’s view of a product’s value is always tied to quality.
C. A consumer’s view of value is a function of his or her education and income.
D. Price plays only a small part in a consumer’s perceived value of a product or service.
E. Price plays a large role in assessing value but a very minor role in assessing quality.
Answer:
Once a consumer has completed the alternative evaluation stage of the consumer
purchase decision process, two choices remain, which are
A. which product to buy and how to pay for it.
B. whether to buy one or several if a BOGO deal is offered and how to pay for them.
C. from whom to buy and when to buy.
D. which product to buy and whether to tell others about the purchase.
E. whether to buy in person or online and whether to tell others about the purchase.
Answer:
Shelter in the Maslow hierarchy of needs is an example of a __________ need.
A. self-actualization
B. personal
C. social
D. safety
E. physiological
Answer:
To encourage retailers to pay their bills quickly, manufacturers offer them
A. quantity discounts.
B. cash discounts.
C. flexible pricing policies.
D. promotional allowances.
E. manufacturer’s inducements.
Answer:
You can go to your nearest Hallmark card store and buy a birthday greeting card for a
friend and pay $4.50. Or, you can buy a Hallmark card from its new $0.99 line of
greeting cards, made with lesser-quality materials but just as sentimental, that are sold
at Barnes and Noble bookstores. This is an example of
A. mass customization.
B. organizational synergy.
C. one product and multiple market segments.
D. price discrimination.
E. a Tiffany/Walmart strategy.
Answer:
Customer experience refers to
A. the practice of building ties to customers based on a salesperson’s attention and
commitment to customer needs over time.
B. the links an organization has to its customers for their mutual long-term benefits.
C. the process of identifying prospective buyers, understanding them intimately, and
developing favorable long-term perceptions of the organization and its offerings so that
buyers will choose them in the marketplace.
D. the internal response that customers have to all aspects of an organization and its
offerings.
E. the activities in which a firm participates to create a positive buying experience for
customers.
Answer:
At Xerox there is a passion for winning that provides a key incentive for sales reps.
Xerox has a recognition program called the __________ where the top performers are
awarded a five-day trip to one of the top resorts in the world.
A. President’s Club
B. Keener’s Club
C. Prestige Club
D. Triumph Club
E. Kudos Club
Answer:
The form of competition in which many sellers compete with substitutable products
within a price range is called
A. pure competition.
B. cross-market competition.
C. an oligopoly.
D. monopolistic competition.
E. a monopoly.
Answer:
What global market-entry strategy did Mary Kay use when it entered India?
A. direct importing
B. licensing
C. indirect exporting
D. joint venture
E. direct exporting
Answer:
When Jeremy bought gas, he noticed the convenience store offered him a 2 percent
reduction in price if he paid cash rather than if he used his credit card to pay for his
purchase. The convenience store was offering him a
A. trade discount.
B. cash discount.
C. promotional allowance.
D. rebate.
E. functional discount.
Answer:
Life is Good t-shirt photo
Life is Good t-shirts (see above) have been sold since 1994. A potential showstopper for
this product is likely to be
A. lack of advertising on television.
B. finding ways to keep ahead of the hundreds of firms in the apparel industry.
C. lower profit margin due the added costs of expensive materials.
D. cannibalization of the company’s existing shirts.
E. use of nylon-blends instead of cotton.
Answer:
A for-profit organization refers to
A. a subsidiary, division, or unit of an organization that markets a set of related
offerings to a clearly defined group of customers.
B. a legal entity engaged in business activities solely with the intent of serving its
employees without the intent of making a profit.
C. a privately owned organization that serves its customers to earn a profit so that it can
survive.
D. a group of people united through contractual or corporate ownership.
E. a publicly owned organization that serves the general population.
Answer:
The specialized group of consumers with a structured set of relationships involving a
particular brand, fellow customers of that brand, and the product in use is referred to as
a(n) __________.
A. brand community
B. VALS
C. opinion leader
D. social class
E. buzz group
Answer: