Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
StarbucksLoyaltyRewards
The first Starbucks opened in 1970 in Seattle, Washington. The demand for its coffee
grew, and Starbucks added more than 6,000 stores located in over 30 countries. In its
more than 30-year history, Starbucks has never given out coupons for its coffee.
Starbucks needed only to make its coffee and customers came. Recently, consumer
quality perception of the Starbucks brand has started to fall. Starbucks started a
consumer response blog to learn more about what consumers expect from Starbucks.
One of the most common requests was for a customer rewards program. In response,
Starbucks started My Starbucks Rewards, which offers free refills on brewed coffee,
free beverage with whole bean purchase, beverage customization, and free Wi-Fi.
Starbucks also put coupons in a national newspaper for those consumers who love
coupons and created a new brew of coffee for those who prefer a milder coffee taste.
Starbucks is hoping that these improvements will restore customers' loyalty and
confidence.
Refer to Starbucks. Which of the four conditions did NOT exist in the minds of the
Starbucks consumer, resulting in declining sales?
a. Each party having something of value to give to the other party
b. Each party being capable of communication and delivery
c. Each party being free to accept or reject the exchange offer
d. Each party believing it to be appropriate or desirable to deal with the other party
e. There being at least two parties for exchange to occur
Answer:
The convenience product marketing strategy includes:
a. wide distribution of the product.
b. higher than ordinary prices.
c. few retail outlets other than convenience stores.
d. significantly lower promotion budgets.
e. products that are not easily substitutable.
Answer:
Experiments with three-dimensional printing have not been successful in industries
such as auto parts.
a. True
b. False
Answer:
The predominant form of nonprofit organization in the United States is:
a. farms
b. arts museums and programs
c. private-sector volunteer organizations
d. social service firms
e. government
Answer:
The government uses a system called NAICS to classify North American business
establishments. NAICS stands for:
a. Non-American Industry Classification System.
b. North and South American Institutional Coding Services.
c. Non-American Industrial Corporation System.
d. North American Institution Code System.
e. North American Industry Classification System.
Answer:
Which of the following products is most likely to have a seasonal media schedule?
a. Aromatherapy candles
b. Masking tape
c. Airplane tickets
d. Charcoal
e. Soft drinks
Answer:
Stouffer's offers gourmet entrees for one segment of the frozen dinner market and Lean
Cuisine for another segment that wants both good taste and low calories. When
Stouffer's chose to serve two welldefined market segments and develop distinct
marketing mixes for each, it was implementing a(n) strategy.
a. market integration
b. concentrated targeting
c. undifferentiated targeting
d. multisegment targeting
e. heterogeneous positioning
Answer:
Chrysler has a financial unit that is responsible for vehicle leases to consumers. It has a
distinct mission, control over its resources, and plans independent of the other divisions
of Chrysler. This financial unit is an example of a(n):
a. organizational level
b. SWOT
c. secure business unit
d. business sales unit
e. strategic business unit
Answer:
A firm that provides functional logistics services to others is called a(n):
a. third-party logistics firm (3PL)
b. intermediate distributor
c. industrial distributor
d. merchant wholesaler
e. ABC firm
Answer:
_______is the practice of marking up prices by 100 percent (or doubling the cost to set
the selling price).
a. Margin pricing
b. Keystoning
c. Mark-on adding
d. Formula doubling
e. Symmetrical pricing
Answer:
When developing countries began encouraging foreign investors and imports,
companies like Black & Decker and Pillsbury offered a wide array of products to
countries throughout the world. Because of enormous populations in developing
countries, these companies predicted a potential for strong annual sales. However, in
addition to total population, companies must not overlook ____ factors such as
distribution of people within a country and household incomes.
a. demographic
b. political
c. cultural
d. educational
e. country resource
Answer:
Knowing the industry requires active research by the salesperson. Which of the
following is not a way to learn about the industry when conducting a needs assessment?
a. Attending industry and trade association meetings
b. Reading articles published in industry and trade journals.
c. Keeping track of legislation and regulation that affect the industry
d. Being aware of product alternatives from competition
e. Memorizing a product's pricing and billing procedures
Answer:
A retail operation that has a 90,000-square-foot facility and houses a florist, baker,
bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same roof as
grocery and household items would be called a:
a. membership warehouse club.
b. wholesale outlet.
c. factory outlet.
d. supercenter.
e. mass merchandiser.
Answer:
____ occurs when a sample somehow does not represent the target population.
a. Sampling error
b. Measurement error
c. Cross-tabulation
d. Diagnostic error
e. Single-source research
Answer:
When multinational firms enable individual subsidiaries to compete independently in
domestic nations, they are engaged in:
a. global marketing standardization.
b. multidomestic strategy.
c. product extension.
d. technological receptivity.
e. marketing hegemony.
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. Nestl's quest is to make some of its existing products more nutritious
and provide a health benefit. This is an example of which type of product modification?
a. Style
b. Extensive
c. Brand
d. Ingredient
e. Functional
Answer:
A trade allowance is a price reduction offered by retailers to customers who are buying
homogeneous shopping goods.
a. True
b. False
Answer:
Why do companies with new brands that have a small market share tend to spend
proportionately more for advertising and sales promotions compared to those with a
large market share for existing products?
a. As a result of experiential marketing research
b. To create the appropriate level of institutional advertising
c. To determine which executional appeal is the most effective
d. To achieve a certain minimum level of exposure to measurably affect purchase habits
e. To prevent product cannibalization
Answer:
Blogs with strict post length limits are called:
a. password-protected blogs.
b. beta blogs.
c. Miniblogs.
d. private blogs.
e. Microblogs.
Answer:
A popular technique for managing a large organization with different technologies and
markets is to divide it into:
a. strategic business units
b. different technologies
c. strategic target markets
d. design matrices
e. tactical segments
Answer:
Toyota found that consumers wanted cars to last longer and be more environmentally
friendly. GM, however, enjoyed being the top U.S. car producer and focused more on
how many cars and trucks it could manufacture, not on what customers wanted from a
vehicle. GM had more of a orientation.
a. sales
b. production
c. market
d. product
e. customer
Answer:
For convenience, pricing objectives can be divided into three categories. They are:
a. refundable, competitive, and attainable
b. perceived, actual, and unique-situational
c. differentiated, niche, and undifferentiated
d. profit oriented, sales oriented, and status quo
e. monopolistic, fixed, and variable
Answer:
Ernest has three engineering degrees. He has hired an interior decorator to update his
home. He is tremendously frustrated when he asks what he thinks are simple questions
about weight-bearing walls and insulation requirements that the designer is unable to
understand. Yet Ernest has the same problems when the designer starts talking about
mauve, cerise, and magenta. Why is the communication process not working in this
instance?
a. The designer is not intelligent enough to understand engineering.
b. Noise is interfering with both encoding and decoding.
c. The wrong medium has been used.
d. The sender and receiver do not share overlapping frames of reference.
e. Personal selling should not be used to market this type of product.
Answer:
The United States, unlike some other countries, does not have a status structure or
social class system.
a. True
b. False
Answer:
Marketers typically use either a push or a pull strategy exclusively.
a. True
b. False
Answer:
In terms of the AIDA process, public relations has its greatest impact in gaining
attention and interest for a company, good, or service.
a. True
b. False
Answer:
Entrepreneur Krissa Fernandes has developed flour made from ground almonds that she
sells under the Platinum Nut brand for use in baking. Everyone who has baked with the
new flour loves it, but she is having trouble getting potential consumers to the desire
stage of the AIDA concept. Which of the following elements of the promotional mix
would be most likely to move people to look for the product and buy it?
a. Flyers placed under windshield wipers at crafts festivals
b. An article in local newspaper about entrepreneurs
c. Increasing the number of stores carrying Platinum Nut
d. A $2-off coupon for a five-pound bag of almond flour
e. A classified ad
Answer:
Christy recently began selling Arbonne skin-care products on a part-time basis. She
began by telling all her friends and relatives about the product. Then she called old
friends from her college days and reached out to the friends of her friends. This
technique for generating leads is called:
a. cannibalizing.
b. networking.
c. snowballing.
d. incremental approach.
e. multiplier effect.
Answer:
Since 1953, the United States has limited the amount of raw peanuts that can be
imported to 1.7 million pounds a year. This is only about one-tenth of 1percent of all
domestic edible peanut consumption in the United States. This limitation is an example
of a(n):
a. natural resource barrier
b. quota
c. tariff
d. exchange control
e. boycott
Answer:
Campbell's can talk about its soups being "Mm! Mm! Good!" and promote its entire
line. This is an example of:
a. macroeconomics.
b. package uniformity.
c. advertising economies.
d. guerilla marketing.
e. economies of scale.
Answer:
BreatheRight
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive
device that sticks on your nose to open up the nasal passages. Since their introduction in
the United States, Breathe Right strips have been used by athletes hoping to improve
their performance through increased oxygen flow, snorers hoping for a sound night's
sleep, and allergy and cold sufferers looking for relief from their stuffy noses. Because
CNS is a small company, it initially had trouble promoting its product. Then San
Francisco 49er Jerry Rice started regularly wearing them, and U.S. sales took off.
Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided
to expand globally, its size made it look for a partner. It chose 3M because 3M already
had a global market distribution system and because the Breathe Right strips
complemented the 3M first aid product line.
Refer to Breathe Right. The same Breathe Right nasal strips you can buy in any
pharmacy in the United States can also be purchased in 40 other countries. CNS used a
_____strategy.
a. mass marketing
b. product invention
c. market substitution
d. product adaptation
e. global market standardization
Answer:
While consumer and business markets differ in many ways, the stability of demand for
products is about the same for each type of market.
a. True
b. False
Answer:
TUFF SHED, Inc. is one of the leading suppliers of installed storage buildings and
garages in the United States.
TUFF SHED mandates that sales, management, and construction teams work together
to anticipate and eliminate potential problems. They make sure customers get the right
buildings for their needs, and they all are built well and in a timely manner. By using
teamwork, TUFF SHED:
a. operates successfully using a production orientation
b. provides its customer with a high level of satisfaction
c. has a high employee turnover rate
d. does not deliver superior customer service
e. has a sales orientation
Answer:
If Facebook were a country, it would be the world's ______largest country.
a. first
b. second
c. third
d. fourth
e. fifth
Answer:
The three basic functions channel intermediaries perform are:
a. transactional, logistical, and facilitating
b. contacting, negotiating, and ownership
c. promoting, distributing, and bulk-breaking
d. assorting, accumulating, and allocating
e. financing, mediating, and storing
Answer:
