Which of the following best describes permission-based e-mail marketing?
A) sending unsolicited, unwanted commercial e-mail messages
B) sending requests to users to join online social networking communities
C) sending e-mail pitches only to customers who “opt-in”
D) offering free promotional materials to new customers
E) gathering demographic details for customer databases
Apple’s iPod has been called “one of the greatest consumer electronics hits of all time.”
iPods have been sold in huge numbers, and Apple captures a large share of the music
player market. This success has attracted many large, resourceful competitors. The iPod
is in the ________ stage of the product life cycle.
A) introduction
B) product development
C) maturity
D) decline
E) adoption
The network made up of the company, its suppliers, its distributors, and, ultimately, its
customers who partner with each other to improve the performance of the entire system
is known as the ________.
A) business portfolio
B) supply chain
C) marketing mix
D) value delivery network
E) internal value chain
Which of the following terms refers to sellers being preoccupied with their own
products and losing sight of underlying consumer needs?
A) vendor lock-in
B) social loafing
C) value proposition
D) marketing myopia
E) conspicuous consumption
The movie industry in a country is controlled by six large studios that receive 90
percent of the annual revenues from movies. This is an example of a(n) ________.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) pure monopoly
E) government monopoly
Which of the following statements is most likely true regarding the objective-and-task
method of budget-setting?
A) It forces management to spell out its assumptions about the relationship between the
money spent and promotion results.
B) It is the simplest and least time consuming method to use.
C) It is the least logical budget-setting method.
D) It involves setting the promotion budget to match competitors’ outlays.
E) It wrongly views sales as the cause of promotion rather than as the result.
Which message execution style involves presenting survey data indicating that a brand
is better than other brands?
A) scientific evidence
B) testimonial evidence
C) endorsement
D) technical expertise
E) slice of life
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a
merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a
popular family attraction with 20 rides, a restaurant, and an outdoor performing arts
theater.
“My wife, Gail, and I didn’t know what we were getting into,” commented Ron Hart,
the owner. “We just knew that weekenders coming to the lakes in our rural area
represented an untapped market.”
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even
senior citizens who enjoy strolling through the gardens and the arbors.
“There’s something here for everyone,” Gail Hart said with a smile. “Dozens of
companies hold annual company picnics here. We have welcomed class field trips. And
we even had one wedding here at the park!”
“Here’s the funny thing,” Ron chimed in. “We really don’t know why we’ve been so
successful. There is nothing else like Fun-Spot Fun Park in the area. We were just
lucky.”
“I think it’s the ambience of the park that has brought so many visitors,” Gail added.
“We provide a ‘total package’ of entertainment. Plus, we try to change our rides and
various attractions from time to time for variety.”
Ron and Gail Hart admitted that making every visitor happy is a priority. “That has
always been our philosophy,” they said. “Like the park’s motto at the entrance reads,
‘We’re here to make you happy!’ And we’ve always been able to deliver on that because
we’ve never allowed ourselves to grow too big too quickly.”
Fun-Spot’s mission is ________.
A) product oriented
B) technology oriented
C) market oriented
D) design oriented
E) narrowly focused on profits
A reputed cosmetic company in New York City added new product lines in order to
increase its business. In other words, it ________.
A) lengthened its existing product line
B) decreased its product line consistency
C) widened its product mix
D) engaged in market diversification
E) engaged in social marketing
Commercial online databases are rich sources for obtaining ________.
A) primary data
B) secondary data
C) customer insights
D) low-level data
E) binary data
Alden Manufacturing produces small kitchen appliances-blenders, hand mixers, and
electric skillets-under the brand name First Generation. Alden attempts to target
newlyweds and first-time home buyers with this brand.
Considering that most young households have limited financial resources, Alden
attempts to engage in target costing. “In doing this,” says Milt Alden, the co-founder of
Alden Electronics, “we have better control over keeping price right in line with
customers.”
Alden manufactures a three-speed blender, its top seller, along with a five-speed
blender. The hand mixers are manufactured in two variants-a small handheld mixer with
two rotating beaters and another that comes with an optional stand and an attached
mixing bowl. Alden’s temperature-controlled skillets are manufactured in a single style
with three color options.
“Our product offerings are narrower,” Milt Alden added, “but our line workers know
each product like the back of their hands. This allows us to produce superior products
while holding our prices low.
If Alden raises the price of the handheld mixer by 2 percent and then the quantity
demanded falls by 10 percent, what is the price elasticity of demand?
A) -5
B) -8
C) -12
D) 5
E) 12
Oscarz Aviation’s Web site, GoOscarzAv.com, informs customers about a wide variety
of services offered by the firm. It also has a guestbook where customers can provide
feedback on their experiences with Oscarz Aviation. GoOscarzAv.com is an example of
a(n) ________.
A) online social network
B) blog
C) kiosk
D) corporate Web site
E) digital catalog
Which type of retailer is most likely to require its employees to focus most on assisting
customers as they shop?
A) self-service retailer
B) full-service retailer
C) off-price retailer
D) limited-service retailer
E) convenience retailer
Which of the following is true with regard to pure competition?
A) Under pure competition, no single buyer or seller has much effect on the going
market price.
B) In a purely competitive market, marketing research is of utmost importance.
C) In a purely competitive market, product development is the focus of most firms.
D) Under pure competition, the market consists of many buyers and sellers who trade
over a range of prices rather than a single market price.
E) Under pure competition, the market consists of only a few large sellers.
After the purchase of a product, consumers will be either satisfied or dissatisfied and
engage in ________.
A) consumer capitalism
B) alternative evaluation
C) postpurchase behavior
D) consumer ethnocentrism
E) information searches