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Hazelwood Farms provides local restaurants with organic fruits and vegetables that
have been grown without the use of pesticides or chemical fertilizers. Hazelfield Farms
is a supplier of:
a. accessory parts.
b. supplies.
c. raw materials.
d. unprocessed extractive products.
e. processed materials.
Answer:
No-Glut is a small company that manufactures several gluten-free products for
consumers who cannot digest this substance. For this manufacturer, rice flour, which
will be used in its manufacturing process, is:
a. accessory equipment.
b. fabricating material.
c. a component part.
d. an integrated material.
e. processed material.
Answer:
New subscribers to Men"s Health magazine receive a free copy of Men"s Health Total
Fitness Guide. The Fitness Guide is an example of a(n):
a. contest.
b. premium.
c. trade sample.
d. product placement.
e. loyalty incentive.
Answer:
Unprocessed extractive or agricultural products, such as copper, peanuts, soybean,
bauxite, fruits, ore, and so on, that become part of finished products are examples of:
a. supplies.
b. OEM parts.
c. component parts.
d. processed materials.
e. raw materials.
Answer:
Basic research attempts to develop new or improved products.
a. True
b. False
Answer:
Meta Singh is expected to sell two surgical laser systems each month. This sales
objective is an example of a quota.
a. True
b. False
Answer:
Kathy is driving Chaz, her young son, home from soccer practice when Chaz says,
"Mom, I"m thirsty." Kathy immediately pulls the car into the nearest gas station and
buys Chaz a Coke. For Kathy, the Coke is best described as an example of buying a
product.
a. homogeneous shopping
b. heterogeneous shopping
c. convenience
d. specialty
e. component
Answer:
Reducing the services that come with the basic product is called:
a. Demarketing.
b. Contraction.
c. two-part pricing.
d. retroactive pricing.
e. Unbundling.
Answer:
A sales-oriented firm defines its business (or mission) in terms of:
a. employees
b. goods and services
c. customers
d. competitors
e. benefits
Answer:
PAS Systems has developed an unobtrusive flashlight-alcohol detector. The flashlight
readings are inadmissible in court but are used by police officers to decide whether to
hold someone for a sobriety test. Each one costs $600. The manufacturer assembles a
breathalyzer from one supplier with a slightly modified flashlight case from another
supplier to make the new product. The breathalyzer and the flashlight case are examples
of:
a. major equipment.
b. component parts.
c. processed materials.
d. integrated parts.
e. accessory equipment.
Answer:
Boise Cascade
Boise Cascade comprises two businesses. Boise Cascade Building Materials
Distribution is one of the largest wholesale building materials distributors in the United
States. The firm's 33 distribution facilities market a wide range of building products and
services to retail lumber dealers, home improvement centers, and industrial accounts
nationwide. Boise Cascade Wood Products manufactures plywood, lumber,
particleboard, and engineered wood products (laminated veneer lumber, I-joists, and
laminated beams) at 20 manufacturing facilities in the United States and Canada. The
firm's wood products are used primarily in housing, industrial construction, and a
variety of manufactured products. The wood products are sold to retail lumber dealers,
home centers specializing in the do-it- yourself market, and industrial customers.
Refer to Boise Cascade. The plywood, lumber, particleboard, and engineered wood
products manufactured by Boise Cascade would be classified as:
a. processed materials.
b. accessory equipment.
c. installations.
d. supplies.
e. component parts.
Answer:
Global marketing standardization presumes that the markets throughout the world are
becoming more alike.
a. True
b. False
Answer:
Assume that you are the marketing manager for a leading U.S. manufacturer of
earthmoving equipment. Your company would like to become heavily involved in
global marketing (especially in India) but has some capital limitations. Your job is to
evaluate whether it should use contract manufacturing or direct foreign investment.
Compare and contrast these two options and make a recommendation.
Answer:
____ is the process of grouping customers into market segments according to the
benefits sought from the product.
a. Benefit segmentation
b. Value-added segmentation
c. Lifestyle segmentation
d. Macrosegmentation
e. Psychographic segmentation
Answer:
____ occurs when all the firms and business units participating in the supply chain
appear as though they are reading from the same script.
a. Strategic channel operation
b. Supply chain integration
c. Strategic MRP
d. Demand management
e. Extensive distribution integration
Answer:
Britney is fifteen years old and wants to open her own business selling cupcakes to
local coffee shops and restaurants. She is having a tough time deciding whether to base
her pricing objectives on market share, dollar sales, or unit sales. Regardless of which
she chooses, her pricing objective can be categorized as:
a. status quo.
b. profit oriented.
c. need oriented.
d. cost oriented.
e. sales oriented.
Answer:
Negotiations (such as GATT or the Uruguay Round) between countries that are made to
stimulate global exchange and remove barriers are called ______agreements.
a. trade
b. joint venture
c. CRM
d. exchange
e. licensing
Answer:
For a nail salon, the costs associated with the purchase of nail polish and other products
like nail polish remover, sterilized equipment, laundry service for the towels, and the
beverages given to customers, are all examples of ______costs.
a. marginal
b. variable
c. fixed
d. promotional
e. liquidity
Answer:
____ provide the fuel that keeps the corporate engines humming. Without them, there
would be no business.
a. Marketing messages
b. Sales
c. Communications
d. Managers
e. JIT processes
Answer:
Which of the following is the best example of a convenience product?
a. Concert tickets
b. Chewing gum
c. Jeans
d. Chemical for the swimming pool
e. A birthday present
Answer:
The Green Earth, a landscaping company, finds that the most difficult firms to get
business from are the _____ , because this group considers numerous and even
unfamiliar suppliers, solicits bids, and carefully analyzes options; therefore, it requires a
higher levels of customer service.
a. actualizers
b. strivers
c. satisficers
d. optimizers
e. early adopters
Answer:
Which of the following statements about the teen market is TRUE?
a. Teens represent half of all spending in the United States.
b. Teens have considerable influence over major family purchase decisions.
c. Teens typically have very little influence over major family purchase decisions.
d. Teens spend a considerable amount of money on health-related purchases.
e. All of the above are true.
Answer:
One way to identify the orientation of a firm is to examine its primary goal. If a firm
seeks to achieve profitability through sales volume, it would probably be:
a. promotion-oriented
b. price-oriented
c. sales-oriented
d. production-oriented
e. retail-oriented
Answer:
Which of the following is an example of a product item?
a. Tarter Protection Crest toothpaste
b. Campbell's soup
c. Chevrolet automobiles
d. Ore-Ida frozen foods
e. All of the above are product items.
Answer:
Markets are always segmented by at least two variables.
a. True
b. False
Answer:
RockTenn
RockTenn produces packaging products. The company makes cartons that will hold a
dozen Dunkin" Donuts, waffle fries for Chik-fil-A, Gillette razors, Haagen-Daz ice
cream, express mail envelopes for FedEx, and much more. RockTenn business
fluctuates depending on consumer demand. As plastic products become more
expensive, companies turn to cardboard and paper to package their products.
Refer to RockTenn. RockTenn makes paper products for companies to use in their
product and service offerings.
This is an example of:
a. business marketing.
b. consumer marketing.
c. Internet marketing.
d. retail marketing.
e. complex marketing.
Answer:
_____ is the interpretation of the language and symbols sent by the source through a
channel.
a. Encoding
b. Perceiving communication
c. Decoding
d. Channeling
e. Semiotics
Answer:
Which of the following is the LEAST likely source for new-product ideas?
a. A company's distributors
b. Its customers
c. Its employees
d. Its financial lenders
e. Its competitors
Answer:
General Motors buys engines for use in its vehicles from BorgWarner, which in turn
buys many of the vehicles it needs from GM. This is an example of:
a. nested demand.
b. derived demand.
c. reciprocity.
d. elastic demand.
e. circular buying.
Answer:
Which of the following is the best example of a shopping product for most consumers?
a. Washing detergent
b. Crackers
c. A soft drink
d. A digital camera
e. A magazine
Answer:
Novartis
Novartis, a Swiss drug maker, is planning to purchase a majority stake in Zhejiang
Tianyuan Bio-Pharmaceutical Company, a Chinese vaccine maker. Novartis has agreed
to pay $125 million for the company, which holds a 3 percent share of China's $1
billion vaccines market. The market for vaccines is growing 20 percent or more in the
developing nations of Asia, Africa, and Australasia. In the past, vaccine use has been
limited to basic shots against diseases such as polio, tuberculosis, and measles, but as
the economies of these countries grow, government and private healthcare spending
focuses on preventing diseases such as hepatitis B, cholera and rotavirus, tetanus, and
others. Some critics are against the acquisition, claiming that prices will increase.
Novartis claims it is not interested in raising prices but rather in expanding Tianyuan's
product offerings.
Refer to Novartis. By acquiring Tianyuan, Novartis will be offering vaccines, which is a
product that it currently offers in its existing markets, to new markets for the company.
This is an example of which strategic alternative?
a. strategic window
b. market penetration
c. product development
d. diversification
e. market development
Answer:
Outdoor advertising is:
a. inflexible and high-cost.
b. inflexible and low-cost.
c. flexible and high-cost.
d. flexible and low-cost.
e. not an actual medium.
Answer:
Marketers consider all of the following examples of new products EXCEPT:
a. a 2014 model year automobile with the same style, parts, and color as the 2013
model.
b. the addition of a management consultant service to a company that once specialized
in investment management.
c. a new design for Reach brand toothbrushes.
d. a new flavor of Ben & Jerry's brand ice cream.
e. the development of a less-painful procedure for the treatment of varicose veins.
Answer:
Until the 1990s, few firms practiced market segmentation.
a. True
b. False
Answer:
