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If price _____and revenue _____, demand is elastic.
a. stays the same; stays the same
b. goes down; goes down
c. goes down; goes up
d. goes down; stays the same
e. goes up; stays the same
Answer:
All of the following statements about the creation of a code of ethics are true EXCEPT:
a. A written code helps employees avoid confusion when determining whether their
decisions are ethical.
b. A code can be an effective internal control on behavior.
c. The process of formulating the code facilitates discussions that ultimately create
better decisions.
d. A code helps employees identify what their firm recognizes to be acceptable business
practices.
e. A code guarantees ethical behavior among a firm's employees.
Answer:
Dave is in charge of finding sponsors for the 2015 Riverbend Festival. He is meeting
with marketing representatives from Wrangler jeans and First Tennessee National Bank,
attempting to convince them to sponsor the event. Dave is engaged in personal selling.
a. True
b. False
Answer:
Bag Media is a British company that sells space on paper bags to advertisers who want
to drive consumers to their Web sites. A Bag Media representative made a presentation
to several Internet entrepreneurs who are interested in getting traffic to their sites. When
one of the entrepreneurs ordered its Web address printed on 25,000 bags, it was an
example of:
a. feedback.
b. decoding.
c. Noise.
d. indirect transmission.
e. nonverbal communication.
Answer:
____ involves determining which sales prospects have a recognized need, buying
power, and receptivity and accessibility.
a. Prospect examination
b. Customerization
c. Lead reciprocity
d. Lead qualification
e. Bird-dogging
Answer:
Lyndon went to a Web site that sells barbeque grills and read reviews of several
different models. He has requested more information about a Weber grill that appeared
to meet his needs, but he is not yet willing to give up his search to find the perfect grill.
As far as Weber is concerned, Lyndon is in the ___ step of the AIDA concept.
a. action
b. attention
c. liking
d. interest
e. desire
Answer:
Louisiana State University (LSU) football season ticket holders have to pay a fee (also
known as a "donation") to the LSU Foundation every January, which is not deemed to
be part of the ticket price. They pay for their tickets later in the year for the next
football season. The Foundation fee must be paid in order to retain the rights to
purchase a season ticket. LSU is using:
a. multiple unit pricing.
b. professional services pricing.
c. price lining.
d. price bundling.
e. two-part pricing.
Answer:
After selecting a market for study and choosing bases for segmenting that market, the
marketer must select the segmentation ______, which identify the specific segmentation
variables to use.
a. descriptors
b. matrices
c. narratives
d. variations
e. networks
Answer:
The requirement for a market segment to be responsive means:
a. over half of the consumers in the identified segment will be actively interested in the
product
b. all the segments identified by a marketer should respond to the marketing mix
c. all the segments identified by a marketer should not respond to the marketing mix
d. the segments identified by a marketer should not differ in the level of their
responsiveness to the marketing mix
e. the segment identified by a marketer should differ in how it responds to the
marketing mix when compared to another segment confronted with the same mix
Answer:
When P&G began marketing Tide Free & Gentle, which is dye- and perfume-free, this
represented which new product category?
a. Repositioning strategy
b. New product line
c. Addition to existing product line
d. Discontinuous innovation
e. Revision of existing products
Answer:
CableTV
It wasn"t so long ago that cable swaggered around the television industry as the upstart
threatening the broadcast networks. Now, cable is old news. The antagonist is the
satellite dish with the capability of delivering hundreds of channels and offering an
array of movies and sports events. The technology is known as direct broadcast
satellite, or DBS. The new challenger has awakened the 'sleeping giant" cable industry,
which has hit the airwaves with some of the most aggressive advertisements the
television industry has seen. The ads emphasize the downside of disconnecting cable
and choosing to purchase a satellite dish. One commercial opened with a man on a
couch joined by his wife with a large bowl of popcorn. They snuggled in front of their
television set, hooked up to DBS. She seemed excited about their new system and
exclaimed, "So this is it?" She then asked how much the satellite dish cost. When her
husband answered, the excitement was off. "There's no monthly fee?" she asked. "No
more than cable," he responded. When she asked to watch the news, he sheepishly said,
"Uh, can"t get local news." At the end of the commercial, the spokesperson for the
cable industry declared, "These days when everyone is promising you the future of
television, isn"t it nice to know you already have it?"
Refer to Cable TV. The television advertising utilized by cable operators represents the
means by which the company communicates to current users to influence an opinion or
elicit a response. This is called:
a. distribution.
b. price.
c. research and development.
d. promotion.
e. publicity.
Answer:
A number of yogurts are marketed under the Dannon brand, including Dannon All
Natural, Dannon Fruit on the Bottom, Dannon Light & Fit, DanActive, and Dan-o-nino.
The large variety of yogurts under the Dannon brand is an example of a:
a. marketing mix.
b. product line.
c. product mix.
d. product equity.
e. product modification.
Answer:
Dennis Haysbert stars in Allstate ads reminding consumers that they could be in a car
crash or another event requiring insurance. Hence the slogan "You"re in Good Hands
with Allstate." These ads focus on which of Maslow's needs?
a. Esteem needs
b. Economic needs
c. Safety needs
d. Physiological needs
e. Social needs
Answer:
Jel Sert Company makes convenient, durable, and eye-catching packaging. Its
salesperson is demonstrating to a manufacturer of sports drinks how Jel Sert's
packaging would serve as a silent salesperson for its products. The salesperson is
conducting a _____ .
a. negotiation
b. sales presentation
c. follow-up
d. sales approach
e. closing
Answer:
The Michigan State Legislature tried to pass a bill requiring concert promoters and
venue operators to print parental warnings on tickets and advertisements for concerts
and shows by performers whose recordings had content advisory labels. Promoters and
venue operators prevented the passage of this bill, arguing that it would require them to
make value judgments for which they were ill equipped. The promoters and operators
engaged in:
a. internal marketing
b. illegal practices
c. environmental management
d. reengineering
e. corporate espionage
Answer:
Income, ethnic background, gender, and age are all examples of _____ segmentation
bases.
a. geodemographic
b. organizational
c. demographic
d. socioeconomic
e. psychographic
Answer:
is the learned ability to differentiate between similar objects such as packages of
different brands of aspirin.
a. Incentive discrimination
b. Stimulus generalization
c. Selective perception
d. Selective generalization
e. Stimulus discrimination
Answer:
RockTenn
RockTenn produces packaging products. The company makes cartons that will hold a
dozen Dunkin" Donuts, waffle fries for Chik-fil-A, Gillette razors, Haagen-Daz ice
cream, express mail envelopes for FedEx, and much more. RockTenn business
fluctuates depending on consumer demand. As plastic products become more
expensive, companies turn to cardboard and paper to package their products.
Refer to RockTenn. Power tools used to maintain the machinery that produces cartons
would be an example of:
a. major equipment.
b. accessory equipment.
c. raw materials.
d. component parts.
e. processed materials.
Answer:
A furniture manufacturer wants to test how consumers will respond to furniture
upholstered in fabric made from recycled plastic by having consumers feel and respond
to the fabric. Which form of survey would allow it to do this?
a. A telephone interview
b. A mail questionnaire
c. A mall intercept
d. An observation study
e. A laboratory test
Answer:
Fitbit
The pedometer is getting kicked up a notch with the new Fitbit device. The Fitbit is a
$99 motion-detecting sensing device that can measure the user's activity even when
asleep. It digitally records the distance a user walks or runs, right down to the number
of steps, and calories burned. The device wirelessly sends data to its Web site,
fitbit.com, giving users minute-by-minute details. Users can add consumption
information at the Web site, allowing an accurate picture of calorie consumption and
expenditures. Unlike other devices, like the Nike + iPod Sport Kit that monitors
walking and running and sells for $29 or the Zeo Personal Sleep Coach that records
brainwaves while the user is sleeping and sells for $399, the Fitbit combines both
functions. The firsttime Fitbit setup isn"t very easy for users, but once over that hurdle,
it's relative easy to use.
Refer to Fitbit. In terms of the newproduct development process, Fitbit's availability in
retail stores and online shows that it is in the stage.
a. idea screening
b. idea generation
c. business analysis
d. test marketing
e. commercialization
Answer:
TeslaMotors
"Going green" doesn"t have to be boring. The Tesla Roadster Sport is an electric car
that goes from 0 to 60 in four seconds and drives more like a race car than an
environmentally friendly ride. But that level of performance will set you back
$128,500. As of 2009, Silicon Valley"based Tesla Motors, Inc. was the only company
offering highway compatible electric cars. Most Roadster Sport buyers are car
enthusiasts and are buying them for the "fun toy" aspect of having an electric car rather
than for environmental reasons.
Refer to Tesla Motors. What is the fixed cost contribution for the Roadster given
average variable costs of $50,500?
a. $50,500
b. $78,000
c. $128,500
d. $179,000
e. $500,000
Answer:
TurkeyHuntingEquipment
Around the beginning of fall each year, about 2.7 million turkey hunters all over the
United States start looking at catalogs for the perfect item to guarantee that this year
they will kill a wild turkey, the most elusive game bird in North America. The devoted
turkey stalker can stock up on everything from camouflaged turkey hunting socks,
turkey license plate holders, vests with huge pockets for toting dead birds, and hunting
videos to turkey decoys, turkey earrings, and turkey callers. Neil Cost is considered the
best manufacturer of turkey callers in the world. It is his only product, and each is
highly prized by turkey hunters. It is not unusual for a turkey hunter to pay $5,000 for
one of Cost's callers.
Refer to Turkey Hunting Equipment. Segmenting a market based on the fact that people
who enjoy hunting typically exhibit a particular lifestyle is an example of
______segmentation.
a. benefit
b. psychographic
c. geographic
d. geodemographic
e. demographic
Answer:
What would a U.S. company that manufactures the lighted signs used in amusement
parks, at outdoor sports arenas, for restaurant promotion, and by state departments of
transportation on the sides of roads use to facilitate its market segmentation and
targeting if it wanted data that were readily available and usable?
a. A large amount of marketing research, including scanner data and focus groups
b. Other competing firms as a strategic alliance referral service
c. Government bidding processes
d. The North American Industry Classification System
e. Derived demand
Answer:
One of the earliest, largest, and most famous examples of vertical integration was the
Carnegie Steel Company. The company controlled not only the mills where the steel
was manufactured but also the mines where the iron ore was extracted, the coal mines
that supplied the coal, the ships that transported the iron ore, and the railroads that
transported the coal to the factory. Carnegie Steel had a(n) ___ channel relationship.
a. arm'slength
b. functional
c. cooperative
d. co-opetitive
e. integrated
Answer:
In the past 24 years, Mothers Work has grown from a small, mail-order catalog business
headquartered inside the founder's home to the world's largest seller of maternity
apparel, with nearly 1,600 locations. In terms of the business market, Mothers Work
would be best classified as a(n):
a. reseller.
b. producer.
c. distribution network.
d. inventory carrier.
e. business facilitator.
Answer:
For an exchange to take place:
a. there must be at least two parties involved
b. money must be used in the transaction
c. each party must feel obligated to accept the offer
d. at least one party must have something of value that the other party desires
e. neither party must communicate with the other
Answer:
An ad in which Dunkin" Donuts tells consumers that more "hardworking" people prefer
their coffee than the high priced, "elitist" coffee sold at Starbucks is an example of
____advertising.
a. competitive
b. institutional
c. comparative
d. image
e. pioneering
Answer:
Food producers love big boxes because they serve as billboards on store shelves.
Walmart wants to change this practice and promises suppliers that their shelf spaces
won"t shrink even if their boxes do. As a result, some of its vendors have reengineered
their packaging. This is an example of _____ integration.
a. relationship
b. social
c. functional
d. operational
e. material and service supplier
Answer:
ZuTech makes sensitive monitors for measuring exposure to hazardous materials.
ZuTech has suffered substantial losses when moving products from the assembly line to
the warehouse and shipping docks. ZuTech should consider reducing the number of
times an item is moved in the warehouse by installing a(n):
a. inventory control system.
b. materials-handling system.
c. safety procedure to manage SKUs.
d. order-processing system.
e. outsourcing system.
Answer:
____ integration holds that performance assessments should be transparent and
measurable across the borders of different firms.
a. Measurement
b. Social
c. Functional
d. Relationship
e. Material and service supplier
Answer:
Top managers at a commercial real estate firm that specializes in site location and
installation of cell phone towers considered providing the same service for windmill
location and installation but decided this was not within the company's corporate
mission. Which stage of the newproduct development process was reached?
a. Development
b. Idea generation
c. Idea screening
d. Business analysis
e. Customer testing
Answer:
A dog food manufacturer purchases processed meat by-products that it uses in the
manufacture of a dry dog food. These processed meat by-products are examples of:
a. raw materials.
b. OEM products.
c. processed materials.
d. component parts.
e. replacement parts.
Answer:
All of the following are characteristics of a good objective EXCEPT:
a. profitable
b. realistic
c. measurable
d. time specific
e. consistent
Answer:
Even though it is not actively involved in global marketing, Hennessey Enterprises, a
U.S.-based business, agreed to sell two thousand of its stress-reducing products to a
distribution company in Norway. This would be an example of direct investment.
a. True
b. False
Answer:
