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ChoiceHomes,Inc.
Choice Homes, Inc., based in Texas, built its reputation by building high-quality new
homes, often at prices less than "used" ones. Choice Homes used mass purchasing
power, innovative hightech communications among employees to coordinate the
building process, and other entrepreneurial strategies to hold costs down. Its homes are
primarily targeted at first-time homeowners-to-be in an effort to get people out of
apartments so they can experience the "American Dream" of home ownership for the
same price as rent. Choice Homes later developed the "Choice Classic" brand name for
higherend homes targeted at wealthier dualincome couples. The Choice Classic name
was designed to capitalize on the reputation of Choice Homes, especially for current
Choice home owners who are ready to "move up" to a larger home. Recently, Choice
Homes started a third line of homes called "Reflections," which are expensive,
custom-designed homes located in exclusive, prestigious neighborhoods.
Refer to Choice Homes, Inc. Choice Homes is considering acquiring a mortgage and
title company to add to its marketing power in selling homes. This acquisition would
expand the firm's:
a. product mix width.
b. line breadth.
c. product item width.
d. product line length.
e. product breadth.
Answer:
Many people fear world trade because it:
a. will inevitably lead to inflation.
b. will cause living standards to increase at a slower rate.
c. causes some people to lose their jobs as production shifts abroad.
d. has brought entire nations out of poverty.
e. has increased per capita income for some countries.
Answer:
Which business process supports manufacturing flow by identifying and maintaining
relationships with highly valued suppliers?
a. Supplier relationship management
b. Customer service management
c. Product development and commercialization
d. Order fulfillment
e. Demand management
Answer:
The promotional mix elements that should be emphasized for products moving into the
growth stage of the product life cycle are:
a. public relations and reminder advertising.
b. sales promotion and public relations.
c. personal selling and persuasive advertising.
d. sales promotion and personal selling.
e. informational advertising and publicity.
Answer:
Which type of business product includes such capital goods as large or expensive
machines, mainframe computers, blast furnaces, generators, airplanes, and buildings?
a. Major equipment
b. Raw materials
c. Component parts
d. Accessory equipment
e. Investment goods
Answer:
Which of the following is a price tactic that offers all goods and services at the same
price (or perhaps two or three prices)?
a. Primary pricing
b. Uniform-price tactic
c. Single-price tactic
d. Constant-pricing
e. EDLP
Answer:
Axel Spring AG, one of Europe's largest newspaper publishers, with 10,000 employees
and more than 150 papers
in 30 countries, announced it would switch its entire operation from PCs to Macs. Axel
decided to make a switch to Apple because the company's layout work was already
being done by Macs and the Macs were more user friendly, more elegant, and cheaper
to maintain than they had been in the past. This is an example of a:
a. new buy.
b. value buy.
c. straight rebuy.
d. modified rebuy.
e. make-or-buy.
Answer:
Exclusive distribution increases direct competition among a great number of retailers.
a. True
b. False
Answer:
Marketing is important to business, so marketing should be part of the job of everyone
in the organization, not just those in marketing.
a. True
b. False
Answer:
By far, the largest social network for gaming is:
a. Twitter.
b. LinkedIn.
c. SnapChat.
d. Facebook.
e. YouTube.
Answer:
ArtSupplies
It's September and Sophia wants to buy some arts and crafts supplies for an afterschool
program she is developing for her daughter's elementary school. In her Sunday
newspaper was a flyer from Michaels, an arts and crafts retailer. As she looked through
the newspaper insert, she noticed that if she purchased three or more bottles of Alene's
Tacky Glue, the regular price of $1.50 each was reduced to $1.15 each. She also saw
that the store priced its plastic storage boxes at $1.99, $3.99, and $5.99. She thought
they would be useful for storing each child's projects. On the front page of the flyer was
an ad for Funky Girls Gel Pens, something she knew her daughter would love to use.
The price at Michael's was $6.99 lower than the price she had found at the other stores
that carried the pens. She thought that some of the older girls might like to start a
scrapbook and was pleased to find that Michaels had a scrapbook starter kit, which
includes scissors, book, pages, and stickers for only $15. The items could be purchased
separately for $19.99. The flyer also announced that all flag-related items leftover from
its Fourth of July sale were reduced by 40 percent.
Refer to Art Supplies. What pricing practice was used with the scrapbook starter kit?
a. Seasonal pricing
b. Psychological pricing
c. Price lining
d. Price bundling
e. Leader pricing
Answer:
For its new Jeep Compass, DaimlerChrysler has launched a new campaign targeting
young, hip consumers. To reach its target, DaimlerChrysler's advertising agency is
using music, talking bobbleheads, and other nontraditional marketing tactics to capture
consumers' interest. The agency has devised a host of bobblehead characters that
represent the wide variety of potential Compass buyers. The ad agency is acting as the
___ of the message.
a. decoder
b. sender
c. encoder
d. receiver
e. channeler
Answer:
BreatheRight
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive
device that sticks on your nose to open up the nasal passages. Since their introduction in
the United States, Breathe Right strips have been used by athletes hoping to improve
their performance through increased oxygen flow, snorers hoping for a sound night's
sleep, and allergy and cold sufferers looking for relief from their stuffy noses. Because
CNS is a small company, it initially had trouble promoting its product. Then San
Francisco 49er Jerry Rice started regularly wearing them, and U.S. sales took off.
Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided
to expand globally, its size made it look for a partner. It chose 3M because 3M already
had a global market distribution system and because the Breathe Right strips
complemented the 3M first aid product line.
Refer to Breathe Right. In the United States, one of the standard methods for
introducing a new product is couponing, but many countries prohibit the issuing of
coupons. This prohibition would represent a(n)___ of the global environment.
a. cultural
b. economic
c. legal
d. technological
e. demographic
Answer:
Amtrak
Amtrak is taking the gloves off in advertisements and belittling its major competition,
which is airline shuttles. Amtrak's new name for its Metroliner is The Smart Shuttle.
Gone are ads that were inwardly directed and sold the Metroliner on its leisurely pace.
In their place are ads showing rapid shots of the sleek train and business executives
conducting nononsense meetings "eyeballtoeyeball." The campaign, which includes
television, radio, print, billboards, and posters in commuter railroad cars, targets
business travelers, who, Amtrak says, incorrectly believes the train takes far longer than
the airplane to travel between two cities. One television spot opens with a shot of
airplanes stacked up in a tarmac traffic jam. Another shows a business traveler
lumbering into the airport during a snowstorm. The announcer says, "Schedule a
meeting. Take the shuttle. Then cross your fingers." The poor soul looks up at the
departure board and sees a row of "Canceled" signs. The announcer continues,
"Schedule a meeting. Take the Metroliner. Then cross your legs."
Refer to Amtrak. Television, radio, print, and out-of-home media represent the ___ in
the communication process used by Amtrak.
a. feedback loop
b. channel
c. encoder
d. receiver
e. communicator
Answer:
For its new Jeep Compass, DaimlerChrysler launched a campaign targeting young, hip
consumers. To reach its target, Jeep's advertising agency used music, talking
bobbleheads, and other nontraditional marketing tactics to capture consumers' interest.
The agency devised a host of bobblehead characters that represented the wide variety of
potential Compass buyers. DaimlerChrysler was the ____ of the message in this
communication process.
a. sender
b. decoder
c. channeler
d. receiver
e. communicator
Answer:
Domino's pizza, Hyatt Corporation, and Wendy's are all examples of _____ because the
franchisee buys the right to use the franchisor's approach to doing business.
a. product and trade name franchisors
b. redistributor franchisors
c. business format franchisors
d. licensed franchisors
e. relationship franchisors
Answer:
MethodistChurch
In 2001, the United Methodist Church, the second-largest Protestant denomination in
the United States, launched a four-year, $20 million national ad campaign. The
theologically gentle but culturally edgy ads are aimed at Americans who are
unchurched""people who know the name "Methodist" but don"t know anything else
about it. The "Igniting Ministries" ads have appeared on CBS and cable television. The
purpose of the ads is to draw more people through Methodist Church doors in a time
when mainline Protestant denominations are struggling.
Refer to Methodist Church. The church is hoping to see an increase of 3 percent in
visitors to Methodist churches as a result of this ad. In terms of the communication
process, this is the desired:
a. noise.
b. encoding.
c. reception.
d. channel.
e. feedback.
Answer:
ArtSupplies
It's September and Sophia wants to buy some arts and crafts supplies for an afterschool
program she is developing for her daughter's elementary school. In her Sunday
newspaper was a flyer from Michaels, an arts and crafts retailer. As she looked through
the newspaper insert, she noticed that if she purchased three or more bottles of Alene's
Tacky Glue, the regular price of $1.50 each was reduced to $1.15 each. She also saw
that the store priced its plastic storage boxes at $1.99, $3.99, and $5.99. She thought
they would be useful for storing each child's projects. On the front page of the flyer was
an ad for Funky Girls Gel Pens, something she knew her daughter would love to use.
The price at Michael's was $6.99 lower than the price she had found at the other stores
that carried the pens. She thought that some of the older girls might like to start a
scrapbook and was pleased to find that Michaels had a scrapbook starter kit, which
includes scissors, book, pages, and stickers for only $15. The items could be purchased
separately for $19.99. The flyer also announced that all flag-related items leftover from
its Fourth of July sale were reduced by 40 percent.
Refer to Art Supplies. Which type of discount is being used to price the tacky glue?
a. Noncumulative quantity discount
b. Promotional allowance
c. Seasonal discount
d. Cash discount
e. Cumulative quantity discount
Answer:
Dustin is a member of a fraternity that sees no problem with underage drinking. In fact,
it is encouraged and expected the members will party and drink alcohol regardless of
their age. For this group, drinking is considered a(n):
a. norm
b. requirement
c. expectation
d. affect
e. primer
Answer:
Paul operates Kayak.com, a company that allows customers to efficiently search
company databases and find the best airline and hotel deals all over the Web. Kayak
does not make bookings but rather provides recommendations for the best travel plans.
Travel providers pay Kayak a commission for most customers who click through to
their sites. Paul wants his users to have as short and sweet an experience on Kayak as
possible. Time is of the essence in responding to any customer question, especially in
this day where airfare can increase dramatically in just a couple of hours. Paul is
devoted to:
a. improving service delivery.
b. maximizing queues.
c. reducing discrepancies of assortment.
d. reducing wait time.
e. managing service capacity.
Answer:
All of the following statements are reasons why consumer goods companies take a
regional approach to marketing rather than a national approach EXCEPT:
a. Many firms need to find new ways to generate sales because of sluggish and
intensely competitive markets.
b. A regional approach gives marketing managers control over the competitive
environment.
c. Computerized checkout stations with scanners enable retailers to assess accurately
which brands sell the best in each region.
d. Many packaged-goods manufacturers are introducing new regional brands intended
to appeal to local preferences.
e. A more regional approach allows consumer goods companies to react more quickly to
competition.
Answer:
____, or prospecting, is the identification of those firms and people most likely to buy
the seller's offerings.
a. Lead generation
b. Lead qualification
c. Customer mining
d. Referral calling
e. Cold calling
Answer:
Apple, Inc. has partnerships with wireless carriers in Japan, Spain, and a handful of
other European countries.
Apple works with suppliers and retailers worldwide. This means that Apple is a:
a. multinational corporation
b. worldwide competitor
c. marketplace competitor
d. domestic corporation
e. foreign investor
Answer:
In the future, electrical power may come from quantum nucleonics, a form of nuclear
power that produces no residual radiation. The ability to use this form of power will
require equipment adaptations, but it will solve the world's need for clean and efficient
power. Companies that replace inefficient sources of power with quantum nucleonics
only after they are required to by the Environmental Protection Agency are operating at
a(n) _____ responsibility level.
a. legal
b. philanthropic
c. ethical
d. economic
e. cultural
Answer:
Computer-assisted personal interviewing and computer-assisted self-interviewing are
computerized techniques for conducting:
a. CLT interviews.
b. mall intercept interviews.
c. e-mail interviews.
d. in-home interviews.
e. focus groups.
Answer:
Measurement error occurs when a sample somehow does not represent the target
population.
a. True
b. False
Answer:
Fujifilm Computer Products has improved the efficiency and productivity of its plant,
which manufactures printing technology. For the new fiscal year, the company projects
a production increase of 25 percent and has instructed its sales force to aggressively
distribute and promote the product. The CEO is sure the market will absorb
more product if the sales force is determined and assertive. Apparently Fujifilm:
a. has an outward organizational focus on its customers wants and preferences
b. seeks its goals primarily through the use of intensive promotion
c. directs its products to specific groups of people
d. is in the business of satisfying customers
e. profits through customer satisfaction
Answer:
Within the communication process for a car dealer's ad, which of the following would
be an example of noise?
a. Competing ads
b. News stories in the newspaper
c. The physical surroundings in which the individual reading the ad is located
d. The presence of other people while the ad is being read
e. All of these
Answer:
A discount off the base price to customers who pay immediately, or within a specified
time period, is called a:
a. functional discount.
b. quantity discount.
c. base discount.
d. cash discount.
e. promotional allowance.
Answer:
In general, average family incomes are higher in more developed countries than in the
less developed countries.
a. True
b. False
Answer:
What are the problems associated with the use of a cost-based pricing strategy? What
contribution does cost make to the setting of prices?
Answer:
Geographically dispersed sellers often result in significant freight costs. Name and
describe the five types of geographic pricing tactics that can be selected by a marketing
manager to moderate the impact of freight costs on its more dispersed customers. For
each tactic defined, specify the circumstances that would prompt the selection of that
geographic pricing tactic.
Answer:
The Crayola brand is currently placed on a wide variety of products, including crayons
(standard and fluorescent colors packaged in a wide variety of box sizes), markers
(regular and washable), paints (watercolor and acrylic), scissors, glue, and children's
clothing. Using Crayola as an example, describe the concepts of product item, product
line, and product mix.
Answer:
Explain some ways marketers can effectively use location-based social networking
sites.
Answer:
Explain the importance of interactions in a customer relationship management (CRM)
system. Most colleges and universities have some form of CRM system. Describe an
interaction that occurs at your institution.
Answer:
Define channel power, channel control, channel leadership, and channel partnering and
explain how these four terms are related.
Answer:
What is an inventory control system? Discuss the objective of inventory management,
and describe materials requirement planning (MRP) and distribution resource planning
(DRP).
Answer:
Briefly define and describe each of the categories of business products. Give two
specific examples of goods or services that fit into each category.
Answer:
An important factor in the global external environment that has become more evident in
the past decade is the shortage of natural resources. Choose two different natural
resources and describe how shortages of each of these resources affect global trade.
Answer:
Identify the four types of observation research and give an example of how each is used
in marketing research.
Answer:
Discuss the benefits for organizations by organizing related items into product lines.
Answer:
Global legal structures are designed to either encourage or limit trade. Name and define
five of these legal structures.
Answer:
Any time a sample is used in marketing research, there will be two major types of
errors, measurement error and sampling error. Briefly describe these two sources of
error. Then name and define one other possible source of error.
Answer:
Explain yield management systems (YMS) and discuss the types of industry where they
are most appropriate.
Answer:
What is a touch point? Give two examples of touch points.
Answer:
