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Chad has calculated the sales volume at which his lemonade stand's costs equal
revenue. Over dinner, he announced to his family that he only needed to sell 50 glasses
of lemonade at $5 per glass to cover all his costs (such as lumber and nails for the stand,
lemons, and sugar). Which important factor has Chad excluded from his analysis?
a. Fixed and variable cost determination
b. Consumer demand
c. Target return pricing
d. Break-even analysis
e. Market share
Answer:
Before any creative work can begin on an advertising campaign, it is important to:
a. determine what goals or objectives the advertising should achieve.
b. set the marketing budget.
c. decide what executional style to use in the ads.
d. see if sales promotion is more important.
e. hire a spokesperson.
Answer:
Kraft's marketing efforts for its Macaroni & Cheese include television commercial and
magazine inserts. These are all activities associated with:
a. advertising.
b. publicity.
c. public relations.
d. sales promotions.
e. direct marketing.
Answer:
What trait, meaning the ability to put oneself in someone else's shoes, is something
sales managers should look for in applicants?
a. Sympathy
b. Ego strength
c. Kindness
d. Assertiveness
e. Empathy
Answer:
Which of the following statements about social media is true?
a. By the beginning of 2012, four minutes out of every five spent on the Internet
worldwide was dedicated to social networking.
b. Facebook, by far, is the world's most popular social network with over a trillion
users.
c. 62 percent of Facebook users comment on other users' posts or statuses, 70 percent
comment on other users' photos, and 86 percent like other users' content.
d. People ages 55 to 64 spend more than 11 hours on social media per month.
e. Teenagers and young adults are more likely than any other demographics to view
social networks as a poor source of information.
Answer:
Which type of service processing occurs when the service is directed at customers'
physical possessions, such as lawn care, dry-cleaning, and veterinary services?
a. People processing
b. Possession processing
c. Mental stimulus processing
d. Information processing
e. Tangible processing
Answer:
In advertising, the goal is to sell the _____, not the _____ of a product.
a. benefits; attributes
b. characteristics; appeals
c. values; traits
d. competitive edge; virtues
e. differential advantage; properties
Answer:
One way of conveying a message that the receiver will hear properly is to use abstract
words and pictures.
a. True
b. False
Answer:
Belgian Beer brewer InBev bought Anheuser-Busch for $52 billion. This is an example
of a(n):
a. export
b. joint venture
c. franchise
d. licensed agreement
e. direct foreign investment
Answer:
The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her
pregnant body, decorate it, and keep it for a lifetime. The primary market segment for
the Belly Cast kit is:
a. all parents
b. expectant moms
c. recently married couples
d. parents of toddlers
e. collectors of unusual art
Answer:
UGG has a portion of its Web site featuring photographs of celebrities wearing UGG
shoes. The celebrities serve as:
a. opinion leaders.
b. laggards.
c. early instigators.
d. Gatekeepers.
e. aspirational adopters.
Answer:
When marketing researchers for a local fitness club wanted to know consumers'
intentions to start a fitness program for a New Year's resolution, they used a(n)___
with five possible answers ranging from "Most Likely" to "Least Likely" and asked that
the respondent choose one.
a. open-ended question
b. action-based question
c. sampling frame question
d. scaled-response question
e. dichotomous response
Answer:
Manufacturers of consumer goods often give away trial sizes of new products to
encourage:
a. experiential learning.
b. selective perception.
c. continuous reinforcement.
d. conceptual learning.
e. problem recognition.
Answer:
Nestl
When consumers think of Nestl, they probably think of chocolate. Historically, though,
Nestl's confectionary business is its weakest area. Based in Switzerland, it is the world's
largest food company, with a brand arsenal of Nescaf, Jenny Craig, Perrier, Purina, and
PowerBar, just to name a few of its 30 product lines. Nestl is hoping to become the
"world's leading health, nutrition, and wellness firm" by spending billions of dollars on
research and development of functional foods""foods that have pharmaceuticallike
capabilities to enhance energy and heart, bone, gut, and other health. Nestl wants
consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of
this new focus includes streamlining the product mix by selling underperforming items
or lines that do not fit its new direction. Critics claim that this new focus could hurt the
company's existing brands if the new products fail. Additionally, it may be an uphill
battle convincing consumers that a company known for indulgence is now a wellness
company.
Refer to Nestl. Some of Nestl's products include bottled water, candy, and coffee, which
would be classified as what type of consumer products?
a. Heterogeneous shopping products
b. Homogeneous shopping products
c. Convenience products
d. Specialty products
e. Unsought products
Answer:
Vutek manufactures printing machines used to print high-resolution graphics for
billboards, bus cards, banners, and posters. For distribution, you would expect Vutek to
use a:
a. network of facilitating agents
b. horizontally integrated channel
c. reciprocal channel
d. direct channel
e. vertical marketing system
Answer:
evaluate new-product ideas usually before any prototype has been created.
a. Concept tests
b. Simulated market tests
c. Market tests
d. User tests
e. Venture analyses
Answer:
A planning manager visiting a company's health and beauty aids division discovers the
division has no effective method for allocating resources, nor for evaluating actual
results against planned results. His suggestion to the division would likely be to prepare
a:
a. marketing audit
b. contingency plan
c. service audit
d. market share analysis
e. series of tactical evaluations
Answer:
Point-of-purchase displays in grocery stores, coupons, premiums, and trial-size
packages are most useful when the consumer is near the ___ stage of the AIDA model.
a. liking
b. awareness
c. action
d. preference
e. knowledge
Answer:
Extending a well-known and respected brand name from one product category to
another product category is referred to as:
a. brand stretching
b. brand extension
c. brand bouncing
d. brand transfer
e. brand building
Answer:
Breyer"sIceCream
One hot August afternoon, as Nelson is driving home from work, he sees a billboard for
Breyer's Ice Cream. He remembers that he is out of ice cream at home, and thinks it
would be really great to have a nice, cold bowl of ice cream on such a hot day. So he
stops into the convenience store near his home, heads straight for the dairy case, and
picks up a half-gallon of strawberry ice cream.
Refer to Breyer's Ice Cream. According to Maslow's hierarchy of needs, which need
was Nelson trying to satisfy when he purchased the ice cream?
a. Self-actualization
b. Esteem
c. Safety
d. Social
e. Physiological
Answer:
The office of lieutenant governor was vacated, and a special election was called to fill
the office. When the head of the state's Department of Education decided she might run
for the office, she was unsure how running for this office could affect her long-term
plans for running for the office of U.S. senator. She has hired a research
company to obtain survey data from voters in the state. Given that she must make a
decision in less than three weeks, the research company should use:
a. a telephone survey.
b. focus group interviews.
c. personal interview surveys.
d. a mail survey.
e. a passive people meter.
Answer:
Ford Motor Company produces passenger cars, commercial trucks and specialty
vehicles, performance vehicles, and race cars. Ford uses a procedure called ______to
divide its large market.
a. micromarketing
b. positioning
c. market segmentation
d. cannibalization
e. perceptual mapping
Answer:
What people eat, how they dress, what they think and feel, and what language they
speak are all dimensions of:
a. culture
b. selective retention
c. routine response behavior
d. social class
e. selective distortion
Answer:
Hank operates a plumbing and electrical supply store. He has categorized its business
customers by their purchasing strategy. Hank has found it much easier to serve and
satisfy the ____, who usually recontact familiar suppliers and place an order
immediately if product and delivery requirements are acceptable.
a. adopters
b. adapters
c. optimizers
d. innovators
e. satisficers
Answer:
Kendra teaches high school science. She is also a wine expert, a PTA president, and an
accomplished sculptor.
Her other interests include scrapbooking, gourmet cooking, and NASCAR. Marketers
would categorize Kendra as:
a. fitting into a caregiver segment
b. a member of the typical education-based target segment
c. not belonging to any target market
d. having a component lifestyle
e. having a conforming lifestyle
Answer:
A(n) ___ media schedule combines continuous scheduling throughout the year with a
flighted schedule during the best sales periods.
a. pulsing
b. bursting
c. unremitting
d. rhythmic
e. vibrating
Answer:
Lance is a 30-year-old, single professional who enjoys hiking, college sports, and
poetry. He lives with his girlfriend but does not have plans to get married in the near
future. He leads a life much different from his father, who married right after high
school, had children, and worked for the same company his entire career. More and
more in the U.S. consumers like Lance are enjoying _______, piecing together a variety
of interests, products, and services instead of conforming to traditional stereotypes.
a. well-defined segments
b. component lifestyles
c. simple multipurpose products
d. conformity and cohesiveness
e. modular market mixes
Answer:
The accuracy of revenue projections for products are affected by:
a. the newness of the product.
b. the size of the market.
c. the nature of the competition.
d. all of the above.
e. none of the above.
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. Walmart's gross margin is the:
a. total sales from all of its stores worldwide.
b. amount of money it makes as a percentage of sales after the cost of goods sold is
subtracted.
c. amount of money it makes as a percentage of sales before taxes.
d. amount of money it makes as a percentage of sales after all costs are subtracted.
e. net profit it earns after all expenses and taxes are subtracted.
Answer:
Which of the following is NOT a disadvantage a firm using mass communication might
experience?
a. Inability to assess customer reactions to the promotion immediately
b. Clutter from competitors' messages
c. Distractions around the consumer at the time of receipt of the message
d. Inability to know exactly who is receiving the message
e. Great expense on a per person exposed basis
Answer:
