Which of the following is nota generic competitor for Ford’s Expedition sport utility
vehicle?
a. Ford’s Escape SUV
b. Enterprise car rental
c. Harley-Davidson motorcycle
d. Schwinn mountain bike
e. Taxi cab ride
Which of the following acts was enacted to prevent businesses from restraining trade
and monopolizing markets?
a. Sherman Antitrust Act b. Clayton Act
c. Federal Trade Commission Act d. Robinson-Patman Act
e. Wheeler-Lea Act
According to the Boston Consulting Group, question marks are characterized as
products:
a. that have a small share of the market and that require large amounts of cash to build
market share.
b. that have a dominant share of the market and good prospects for growth.
c. that typically generate more cash than is required to maintain market share.
d. that have a dominant share of the market, but low prospects for growth.
e. that are found in established markets and that generate substantial profits.
In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China
which is $3. Which of the following do you think accounts for the difference in price?
a. Exchange control
b. Balance of trade
c. Import tariff
d. Embargo
e. Export tariff
Scenario 14.1
Use the following to answer the questions.
Landry Restaurants Inc. owns a number of different franchised restaurants, including
the Rain Forest Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and
T-Rex restaurants differentiate themselves from their competitors by offering a unique
dining experience. At the Rain Forest Cafe, you can dine under a ceiling of lush tropical
forest plants, while you are viewing the enormous aquarium with exotic fish.
Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant
stuffed monkeys, parrots, and other jungle creatures are planted within the landscape.
The Rain Forest Cafe also contains a gift shop, where customers can purchase t- shirts,
hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has
a similar approach to the uniqueness of the dining experience. The T-Rex Cafe offers
guests a hands-on prehistoric experience, including educational, interactive computer
screens. Customers can also pan for precious gems and fossils in
Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a
gift shop, where customers can purchase items with the T-Rex logo or build their very
own stuffed dinosaur, through “Build-a-Dino” by the “Build-a-Bear” franchise.
Refer to Scenario 14.1. The unique dining experiences offered by the Rain Forest Cafe
and T-Rex Cafe represent the strategic issue of addressed by the restaurants.
a. retail location
b. product mix
c. retail positioning
d. the wheel of retailing
e. customer segmentation
Venus Inc., a manufacturer of personal care and beauty products, has a focus on
sustainability. It has developed eco-packaging, eliminated many potentially harmful
chemicals from its products, and has improved its production systems to reduce waste.
Which major issue of social responsibility has been addressed by Venus Inc.?
a. Protection of the natural environment
b. Consumerism
c. Marketing ethics
d. Legal obligations
e. Community relations
Radio or television transmission difficulties are sources of noise.
a. True
b. False
All of the following are types of direct marketing except:
a. catalog marketing.
b. direct-response marketing.
c. direct selling.
d. television home shopping.
e. online retailing.
A manager at Kohl’s discovers that Macy’s has reduced the price of its children’s Levi’s
from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She
immediately phones her store and instructs the salesperson on duty to put a sign up next
to their children’s Levi’s that reads, “SALE: $24.99.” This is an example of:
a. secondary-market pricing. b. bait-pricing.
c. reference pricing.
d. random discounting.
e. comparison discounting.
Shortly after moving into their new home, Mark and Katherine Gould purchased and
installed smoke detectors and an alarm system. With respect to Maslow’s hierarchy of
needs, the Goulds are concerned about fulfilling their need for:
a. survival.
b. safety.
c. self-actualization.
d. esteem.
e. belonging.
Cost-plus pricing is popular in periods of rapid inflation.
a. True
b. False
Walmart, Macy’s, Nordstrom, and Toys “R” Us are examples of________.
a. manufacturers
b. merchant wholesalers
c. end-users
d. agents
e. retailers
A research that is conducted to clarify the characteristics of certain phenomena to solve
a particular problem is called a(n) research.
a. primary
b. experimental
c. descriptive
d. secondary
e. exploratory
All Healthy Choice products come in green boxes with the same Healthy Choice logo.
This is an example of the use of _____.
a. category-consistent packaging
b. family packaging
c. multiple packaging
d. family branding
e. group labeling
Franchising offers all the following benefits for franchisers except:
a. franchise agreements require a certain standard of behavior from franchisees, which
helps protect the franchise name.
b. franchisers can retain control of their name while increasing global penetration of
their products.
c. the franchisee’s revenue stream is fairly consistent because franchisers pay fixed fees
and royalties.
d. the franchiser’s revenue stream is fairly consistent because franchisees pay fixed fees
and royalties.
e. franchisers do not have to put up a large capital investment.
Price cuts are typical in a product’s growth stage.
a. True
b. False
Byron is interested in buying an antique vase for his grandmother’s birthday. He visits
an antique store and buys the first vase he sees because it is something he thinks his
grandmother would like. Byron does not visit another store and compare other vases.
For Byron, this purchase is most likely considered a(n) good.
a. convenience
b. specialty
c. shopping
d. unique
e. unsought
Business purchasing agents may indirectly contribute to the satisfaction of their own
personal needs by helping their firms achieve organizational objectives.
a. True
b. False
One way marketers can segment business markets is according to their geographic
location.
a. True
b. False