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Blair Housewares wants to add new products to its existing line of products. Managers
are correct in believing that the purpose of idea generation is to create a few ideas, and
the purpose of succeeding stages is to increase that number.
Answer:
Customer-perceived value is defined as the customer's evaluation of the difference
between all the benefits and all the costs of a market offering relative to those of
competing offers.
Answer:
Department stores carry narrow product lines with deep assortments within those lines.
Answer:
Many shoppers now check out merchandise online and then buy it at brick-and-mortar
stores. This process is called showrooming.
Answer:
Marketers are the least effective when they appeal to existing wants rather than when
they attempt to create new ones.
Answer:
Recently, the increased use of online social networks and video sharing has reduced the
need for advertising standardization with global brands.
Answer:
The most obvious advantages that Internet-based survey research offers over mail and
personal interviewing approaches are high speed and low costs.
Answer:
For segmented pricing to be an effective strategy, prices should reflect real differences
in customers' perceived value.
Answer:
New World Food Supplements continuously seeks real product and marketing
improvements for its line of vitamin and protein supplements. This information
indicates that New World is involved in consumer-oriented marketing.
Answer:
A discount store buys at less-than-regular wholesale prices and charges consumers less
than retail.
Answer:
Marketing channel management calls for selecting, managing, and motivating
individual channel members and evaluating their performance over time.
Answer:
New communications technologies such as cell phones and the Internet give companies
new media for interacting with targeted consumers, but these new technologies also
give consumers more control over the advertising messages they receive.
Answer:
A product's position is the place it occupies relative to competitors' products in
consumers' minds.
Answer:
Commercial sources of information typically legitimize and evaluate products for
buyers.
Answer:
Average cost tends to increase with accumulated production experience.
Answer:
The purpose of advertising is to get consumers to think about or react to the product or
company in a certain way.
Answer:
Power centers tend to be smaller than lifestyle centers.
Answer:
Product quality is harder to define and judge than service quality.
Answer:
E-procurement has caused the time between order and delivery to increase significantly.
Answer:
Market segmentation is the process of seeking fewer customers and reduced demand for
profit maximization only.
Answer:
Though marketers may make long-term gains with high-pressure selling tactics, this
approach can do serious damage to short-term customer relationships.
Answer:
Trudie Jones works for a distribution channel firm that helps several electronics
companies find customers or make sales to them. Trudie works for a reseller.
Answer:
The most common form of advertainment is product placement.
Answer:
Within a hotel renowned for its superior service, one registration-desk employee may be
cheerful and efficient, whereas another may be irritable and slow. This exemplifies
service consistency.
Answer:
To plan effective marketing strategies, the company must ignore its competitors.
Answer:
For market skimming to be successful, the costs of producing a smaller volume cannot
be so high that they cancel the advantage of charging more.
Answer:
Dove body soaps are sold successfully in essentially the same form around the globe.
This is an example of straight product extension.
Answer:
Supermarkets sell a limited selection of goods at deep discounts to consumers who pay
membership fees.
Answer:
The biggest involvement in a foreign market comes through exportingentering foreign
markets by selling goods produced in the company's home country.
Answer:
The competitive intelligence system of a company supplies key information to relevant
decision makers about the company's competitors.
Answer:
The relative power of buyers affects segment attractiveness.
Answer:
"At Trader Joe's, our mission is to provide all our customers the best food and beverage
values to be found anywhere, and the information to make informed buying decisions."
This is a product-oriented business definition.
Answer:
Which of the following is a market-oriented mission statement?
A) "We empower customers to achieve their dreams."
B) "We sell jumbo burgers."
C) "We are an online library."
D) "We are a low-cost airline."
E) "We make porcelain figurines."
Answer:
Refer to the scenario below to answer the following question(s).
Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It
has contracts with several large farms in Riverdale, 80 miles away from the factory, that
agree to sell their produce to Giant Beanstalks. The company's products are available to
the public only through Greenleaf, a grocery chain with 38 stores in the country.
What distribution strategy does Giant Beanstalks use?
A) inclusive distribution
B) exclusive distribution
C) selective distribution
D) intensive distribution
E) extensive distribution
Answer:
Hannah Adams is a senior sales manager in Elmo Corp., a rapidly growing company
manufacturing personal computers and printers. In order to handle sales effectively,
Hannah insists on using the services of different groups of people from different
departments within the company such as the sales, marketing, technical support, and
finance departments. In this instance, Hannah makes use of ________.
A) team selling
B) competitive marketing intelligence
C) hybrid selling
D) occasion segmentation
E) sales force automation systems
Answer:
Crocus, a gift store, specializes in serving customer segments that major competitors
overlook and ignore. Which of the following best describes Crocus?
A) market follower
B) market challenger
C) early adopter
D) market nicher
E) laggard
Answer:
Refer to the scenario below to answer the following question(s).
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."
Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment
options for their visitors. This type of strategy can be best described as ________.
A) market penetration
B) market development
C) product development
D) niche marketing
E) diversification
Answer:
Sail Metalworks Inc. is currently looking for the best vendors of metal sheets. In other
words, Sail Metalworks is ________.
A) preparing a general needs description
B) deciding on product specification
C) conducting a supplier search
D) preparing an order-routing specification
E) reviewing suppliers' performance
Answer:
A financial services firm has several loyal customers who conduct business with them
exclusively. However, the company has noticed that this customer group is the least
profitable for the company, and in some cases, it increases their losses when engaging
in business with this group. Which of the following customer groups is being referred to
in this scenario?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) cash cows
Answer:
Which of the following groups do marketers involve for the process of concept testing
new products?
A) suppliers
B) employees
C) target consumers
D) manufacturers
E) competitors
Answer:
The first step in creating effective advertising messages is ________.
A) selecting specific media vehicles
B) planning a message strategy
C) determining return on advertising investment
D) choosing media timing
E) executing the message
Answer:
________ measures the profits generated by investments in marketing activities.
A) A SWOT analysis
B) A marketing audit
C) Regression analysis
D) Return on marketing investment
E) Marketing budget evaluation
Answer:
Today's large, progressive wholesalers have successfully reacted to rising costs by
________.
A) relocating to low-rent, low-tax areas
B) investing in information technology systems
C) investing less money in expensive machinery
D) reducing their markup rates
E) reducing promotional activities
Answer:
Which of the following statements about break-even analysis is true?
A) It is used to determine how much production experience a company must have in
order to achieve desired efficiencies.
B) It is a technique used to calculate fixed costs.
C) It determines the amount of retained earnings a company will have during a given
accounting period.
D) It is a technique marketers use to determine the relationship between supply and
demand.
E) It is calculated by using variable costs, the unit price, and fixed costs.
Answer:
A(n) ________ marketing system consists of producers, wholesalers, and retailers
acting as a unified system.
A) horizontal
B) vertical
C) multitiered
D) communal
E) equilateral
Answer:
Erica wants to replace her old washing machine with a new one. In order to get the
maximum value for her money, she plans to spend substantial time and effort in
gathering information and making product comparisons before making the actual
purchase. In this instance, Erica is planning to buy a(n) ________ product.
A) convenience
B) unsought
C) specialty
D) shopping
E) exclusive
Answer:
Which of the following is a traditional buyers' right?
A) the right to resell the product
B) the right not to buy a product that is offered for sale
C) the right not to pay any taxes included in the final price
D) the right to exchange the product if it is of the wrong size or style
E) the right to demand a discount on the product
Answer:
Lawyers, accountants, and other professionals typically price by adding a standard
markup for profit. This exemplifies ________.
A) target pricing
B) cost-plus pricing
C) value-based pricing
D) break-even pricing
E) penetration pricing
Answer:
John Deere does very little promoting of its lawn mowers and garden tractors to final
consumers. Instead, John Deere's sales force works with Lowe's, Home Depot,
independent dealers, and other channel members, who in turn sell John Deere products
to final consumers. According to this information, which of the following promotion
mix strategies is being used by John Deere?
A) public relations strategy
B) direct marketing strategy
C) push strategy
D) blitz strategy
E) pull strategy
Answer:
Which of the following statements is true of the production concept?
A) It considers customer focus and value to be the paths to sales and profits.
B) It follows the customer-centered sense-and-respond philosophy.
C) It takes an outside-in perspective.
D) It calls for sustainable marketing.
E) It leads to companies focusing too narrowly on their own operations.
Answer:
Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend
magazine advising consumers to request their auto body shops to use Glasis paint is an
example of how a company uses ________.
A) word-of-mouth influence
B) public relations
C) buzz marketing
D) a push strategy
E) a pull strategy
Answer:
All of the following are difficulties associated with selling to government buyers
EXCEPT ________.
A) excessive paperwork
B) bureaucracy
C) strict regulations
D) high advertising costs
E) decision-making delays
Answer:
If demand hardly changes with a small change in price, the demand is ________.
A) variable
B) inelastic
C) highly elastic
D) derived
E) negative
Answer:
At the beginning of each year, the management of Dee Decor states the exact amount a
salesperson should sell. This specific sales target is also known as a ________.
A) sales lead
B) prospect
C) bill of sale
D) channel length
E) sales quota
Answer:
Which of the following is an example of an open-ended question?
A) How is voting going to help the nation?
B) Do you like driving on the highway?
C) How many children do you have?
D) Would you like to try a sample?
E) Are your friends in town?
Answer:
Refer to the scenario below to answer the following question(s).
Jason West, owner of A1 Cleaning, started his enterprise in 2001. Jason's primary focus
had been on office cleaning for large corporations. But in recent months, Jason has seen
a decline in demand for his office cleaning services. Surprisingly, the competitive
environment appeared relatively stable with no new competitors. However, Jason knew
that office cleaning was a high-frequency service that is usually performed daily;
therefore, competitors must have been doing something to attract his customers.
Building a competitive advantage seemed to be the only option to offset competition.
But as Jason pondered over his dilemma, he realized that prior to building his
competitive advantage he needed to better understand how customers assessed service
quality and what they look for in a superior cleaning service.
Jason developed a research plan. First, he gathered information about his competitors,
primarily through pamphlets and Web sites, as well as through a few phone calls in
order to find out exactly what the competitors offered in their cleaning packages. In
addition, Jason obtained from the Chamber of Commerce an updated list of local
corporations. He planned on sending written questionnaires to them.
Though the list of corporations contained 141 local company names, Jason chose to
survey 75 of them. To better understand customer service expectations between both
small and large corporations, Jason divided his surveys into two categories. The survey
questions were designed to extract specific data from respondents with regard to service
quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he
was flexible and would aim his efforts differently if needed.
In this scenario, which of the following is representative of competitive marketing
intelligence?
A) formulating a research plan
B) collecting data about competitors
C) sending mail questionnaires to focus groups
D) creating competitive advantage
E) consolidating core competencies
Answer:
Which of the following is true about online direct marketing?
A) Online direct marketing is also referred to as multi-level marketing.
B) Salespersons are compensated for other salespeople they recruit.
C) Online direct marketing allows sellers to create immediate, timely, and personal
offers.
D) Online direct marketing involves two or more intermediaries.
E) In online direct marketing, outside and inside sales forces coordinate to provide
value products to customers.
Answer:
Which of the following is true with regard to e-procurement?
A) E-procurement has significantly declined in recent years.
B) Typically, business marketers do not favor e-procurement as it offers them little
benefit.
C) E-procurement has been widely practiced since the 1950s.
D) E-procurement adds to existing inefficiencies in the supply chain.
E) E-procurement hastens order processing and delivery.
Answer:
Which of the following is the most logical budget-setting method?
A) percentage-of-sales method
B) affordable method
C) competitive-parity method
D) objective-and-task method
E) push method
Answer:
You own a small independent retail store in your neighborhood. You want to offer fresh
seafood, milk, and bread in your store. In this case, which of the following types of
wholesalers will serve you the best?
A) truck jobber
B) independent distributor
C) drop shipper
D) mail-order wholesaler
E) manufacturers' agent
Answer:
________ refers to freedom from defects and consistency in delivering a targeted level
of performance.
A) Performance quality
B) Product style
C) Branding
D) Conformance quality
E) Product design
Answer:
In which of the following steps of the selling process is a salesperson most likely to
meet the customer for the first time?
A) prospecting
B) preapproach
C) follow-up
D) approach
E) closing
Answer:
Many retailers are now experimenting with limited-time shops that allow them to
promote their brands to seasonal shoppers and create buzz in busy areas. Which of the
following terms best represents such shops?
A) power centers
B) strip malls
C) pop-up stores
D) category killers
E) lifestyle centers
Answer:
________ consists of inviting 6 to 10 people to meet with a trained moderator to talk
about a product, service, or organization.
A) Telephone interviewing
B) Individual interviewing
C) A mail questionnaire
D) An online survey
E) Focus group interviewing
Answer:
Which of the following statements is true of the idea generation stage in the new
product development process?
A) The purpose of idea generation is to reduce the number of ideas to the least possible
number.
B) Truly innovative companies rely exclusively on a single source for new product
ideas.
C) Customers are the least important sources of new product ideas.
D) Truly innovative companies develop extensive innovation networks that capture
ideas and inspiration from every possible source.
E) Truly innovative companies seldom rely on customers and the general public for
ideas.
Answer:
Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many electronic toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory
nodes along the edges. After being charged in the sunlight, the vacuum could run for 7
hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into
table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the
objects in various directions. This is the same type of technology used in the
manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely be
reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a
multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and
several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will
notice it, even if they don't buy it right away."
Which of the following stages of the new product development was Evelyn involved in
when she set up a demonstration booth to learn about consumers' feelings toward her
vacuum cleaner?
A) concept testing
B) marketing strategy development
C) idea screening
D) commercializing
E) crowdsourcing
Answer:
What are the major characteristics of institutional markets?
Answer:
What does marketing ROI measure?
Answer:
What is product value analysis?
Answer:
Explain price elasticity. What determines the elasticity of demand?
Answer:
Explain why electronics and pharmaceuticals manufacturers use customer-driving
marketing.
Answer:
Compare and contrast the two common principles that can be used to guide companies
and marketing managers on issues of ethics and social responsibility.
Answer:
What are the differences between innovators and early adopters?
Answer:
What are the two levels in the sustainability portfolio that deal with "beyond greening"
activities that tend to pay off in the longer term?
Answer:
How do firms practicing channel differentiation gain competitive advantage?
Answer:
List three variables that are used in segmenting business markets.
Answer:
Describe the most common forms of marketing organizations.
Answer:
Explain why an ad might need to be modified from one country to the next.
Answer:
Company X, a manufacturer of office supplies, follows the selling concept. Explain
how the firm may lose sight of customer relationships with this marketing orientation.
Answer:
Although many retail stores are independently owned, others band together under some
form of corporate or contractual organization. Describe the four kinds of corporate or
contractual organizations.
Answer:
Differentiate between controlled test markets and simulated test markets.
Answer:
Explain the change in buying roles of husbands and wives due to an evolving consumer
lifestyle in the United States. Additionally, describe the effect of this change on
marketers.
Answer:
