Within the business market, roller belts that are purchased by vacuum manufacturers are
examples of:
a. supplies.
b. raw materials.
c. accessory equipment.
d. processed materials.
e. component parts.
Answer:
Which of the following products is most likely to be considered an example of a
heterogeneous shopping product?
a. An apartment
b. Laundry detergent
c. A blender
d. A package of pens
e. Dog food
Answer:
______ is the primary determinant of a person’s earning potential.
a. Race
b. Education
c. Social class
d. Gender
e. Marital status
Answer:
Marketers use public relations to:
a. earn public understanding and acceptance
b. communicate with the community in which they operate
c. educate the public about company goals
d. introduce new products
e. do all of these things
Answer:
____ structures for sales force are gaining popularity in today’s competitive selling
environment for companies that emphasize relationship selling.
a. Geographic-based
b. Industry- or market-based
c. Product-based
d. Customer-based
e. Buying center-oriented
Answer:
Which of the following represents the largest group of consumers in the United States?
a. Tweens
b. Gen Y
c. Gen X
d. Baby boomers
e. Boomerangs
Answer:
A small brewery has noticed a 20 percent decrease in the sale of its dark beer over the
last three years. The company’s owner wants to determine why the decline has occurred
and how to reverse the trend. Once the owner has identified the problem as a consumer
perception that dark beer is bitter and calorie laden, its next step in the marketing
research process should be to:
a. collect the data
b. recognize the marketing problem
c. analyze the marketplace
d. plan the research design
e. specify the sampling plan
Answer:
Dial Corporation has introduced Dial Basics, a premium soap product with an emphasis
on value. Dial Basics would be an example of which strategy to create a new product?
a. New-to-the-world product
b. New product line
c. Repositioned product
d. Addition to a current product line
e. Lower-priced products
Answer:
For communication to be effective:
a. marketing managers should use both interpersonal and mass communications.
b. all steps of the communications process model must take place.
c. marketing managers must ensure a proper match between the message to be
conveyed and the target market’s attitudes and ideas.
d. advertising messages must be general enough to cover all ages, social classes, and
education levels.
e. marketers should use televised instead of print communication.
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.
The business market consists of four categories of business customers. RockTenn’s
customers are an example of:
a. producers.
b. resellers.
c. governments.
d. institutions.
e. OEMs
Answer:
All of the following are common reasons why companies fail to achieve a marketing
objective EXCEPT:
a. unrealistic marketing objectives
b. poor implementation
c. plan not formalized
d. inappropriate marketing strategies
e. changes in the environment after the objective was specified and the strategy was
implemented
Answer:
Walmart
Walmart, the world’s largest retailer by revenue, announced that it will get back to its
founder’s roots by initiating more price cuts. Critics claimed that the giant was getting
away from its original focus because it posted relatively high gross profit margins. CEO
Mike Duke assuaged critics by saying Walmart’s $400 billion in sales will become even
larger because the price cuts will attract more customers and it will lower its costs of
goods sold.
Refer to Walmart. Many Walmart stores have a full line of groceries and general
merchandise with a wide range of services, such as a pharmacy, portrait studio, optical
shop, and bank. Walmart is an example of which type of discount store?
a. Hypermarket
b. Supermarket
c. Extreme-value retailer
d. Supercenter
e. Category killer
Answer:
A brand of high-end athletic clothing called Ignition has high marketing costs as well as
high production costs.
Promotions for Ignition products are aimed at gaining distribution and informing
consumers of their high-quality fabrics. In which stage of the product life cycle is
Ignition?
a. Introductory
b. Growth
c. Maturity
d. Decline
e. Saturation
Answer:
RapalaVMCCorporation
Finlandbased Rapala VMC Corporation is the world’s largest fishing lure manufacturer.
It developed its first fishing lure””a cigarshaped minnow””in 1962. The annual market
for fishing lures in terms of retail sales is approximately $600 million. Rapala VMC
garnered one-third of that amount in 2008. New lures must be introduced each year in
order to stay competitive in this industry. Like other lure manufacturers, Rapala focuses
on two questions in developing and making new lures: Does it work, and does it look
good? Developing a new lure takes two or three years and involves extensive field
testing by tournament professionals and fishing guides. At the annual fishing industry
trade show in 2008, Rapala unveiled the “dream lure for the 21st century.”
Refer to Rapala. The degree to which the newest lures are perceived as superior to
earlier models refers to their _____, a characteristic used to predict the rate of adoption.
a. trialability
b. observability
c. relative advantage
d. differentiation capability
e. complexity
Answer:
A ____ is a price reduction that shifts the storage function forward to the purchaser and
enables manufacturers to maintain steady production year-round.
a. functional discount
b. base allowance
c. promotional allowance
d. quantity discount
e. seasonal discount
Answer:
Which level of relationship marketing uses pricing incentives but also seeks to build
social bonds with customers?
a. Level 1
b. Level 2
c. Primary level
d. Secondary level
e. Supplemental level
Answer:
Customer relationship management requires that organizations develop relationships
with their customers through touch points and data mining.
a. True
b. False
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 Ritz-Carlton Hotels. Customer-oriented personnel, effective training programs,
employees with authority to make decisions and solve problems, and teamwork all
work together at Ritz-Carlton to implement which type of strategy?
a. relationship marketing
b. social marketing
c. internal marketing
d. external marketing
e. empowered marketing
Answer:
Which of the following services would be most likely to exhibit strong credence
qualities?
a. A math tutorial service
b. The repair of a leaky drain
c. The preparation of a dead body for burial
d. Tax return preparation
e. A landscaping service that mows lawns
Answer:
Unitary elasticity means that an increase in sales exactly offsets a decrease in prices,
so total revenue remains the same.
a. True
b. False
Answer:
Fans of Ale-8, a ginger-flavored soft drink, are able to explain why Ale-8 is superior to
any other type of cherry cola. They are scattered throughout eastern Kentucky and
southern Ohio and are extremely brand loyal. Though Ale8 is available in bottles or
cans, most connoisseurs prefer glass bottles. Ale8 “traditionalists” even insist on
drinking the beverage from the oldstyle “longneck” bottles as opposed to the newer,
shortneck design. The characteristics of this target market indicate that a promotional
mix with ____should be used.
a. less publicity and sales promotion and more personal selling
b. more advertising and sales promotion and less personal selling
c. more sales promotion and personal selling and less advertising
d. less sales promotion and more advertising and personal selling
e. more advertising and less sales promotion and public relations
Answer:
ClaxtonFruitcakes
One common Christmas tradition in many households is the Claxton fruitcake. The
fruitcake bakery in Claxton, Georgia, makes about six million pounds of fruitcake
annually and has $12 million in sales. One fruitcake batch weighs 375 pounds. About
70 percent of that weight is fruits and nuts. A single batch is divided into 34 loaf
pans that hold 11 pounds each. Loaves are cooked for 100 minutes at 375 degrees. The
bakery can cook 6,000 pounds at a time. During the baking season (August to
December), the bakery uses a tractor-trailer load of raisins each day. The suggested
retail price of a one-pound Claxton fruitcake is $3.69.
Refer to Claxton Fruitcakes. Any company that purchased Claxton fruitcakes to give to
its customers would treat this purchase like any other purchase and evaluate the cake
and the company in terms of:
a. demand, value, and promotion.
b. quality, service, and price.
c. order time and delivery time.
d. customer relationships, costs, and ethical behavior.
e. time requirements, order speed, and customer reactions.
Answer:
The stages of the product life cycle, in order, are:
a. introduction, maturity, decline
b. introduction, growth, maturity, decline
c. growth, maturity, plateau, decline
d. innovation, early adoption, late adoption, laggard
e. category acceptance, category growth, brand acceptance, brand growth
Answer:
Sustainability is the development and marketing of products designed to minimize
negative effects on the physical environment or to improve the environment.
a. True
b. False
Answer:
Individuals and organizations utilizing a global vision to effectively market goods and
services across the world are engaged in:
a. international selling schemes
b. borderless commerce
c. global marketing standardization
d. global logistics
e. global marketing
Answer:
NSTAR Gas & Electric Company in Boston provides continuing financial support for
an injury prevention program run by the Children’s Hospital Boston. This funding is an
example of:
a. corporate social responsibility
b. ethical conveyance
c. a duty to engage in cause marketing
d. a right to engage in social marketing
e. multiculturalism
Answer:
According to recent market research, Google is one of the most valuable brands in the
world. According to this research, the company and its well-known name are worth
about $100 billion. This research indicates that Google has a high:
a. brand loyalty hierarchy.
b. evoked set.
c. brand quality standard.
d. perceptual expectation.
e. brand equity.
Answer:
____ is the primary tool used by a sales-oriented organization to achieve its corporate
goals.
a. Price
b. Promotion
c. Product design
d. Place (distribution)
e. Production
Answer:
Selfridges is the second-largest department store in Great Britain. It works with House
of Frasier, one of its competitors, to reduce operating costs by sharing channels of
distribution to ship goods from 1,500-plus suppliers. Selfridges and House of Frasier
are engaged in:
a. vertical conflict
b. an integrated supply chain
c. a strategic channel alliance
d. an information-based distribution channel
e. a distribution cooperative
Answer:
Research indicates that when a country’s inflation rate is high, demand becomes more
elastic.
a. True
b. False
Answer: