The Swatch Group is the parent company of the most successful wristwatch of all time,
the Swatch.
Headquartered in Switzerland, The Swatch Group recently entered into a partnership
with a company in France to make the packaging materials for all of its Swatch lines.
What type of partnership agreement does this situation most likely represent?
a. Trading company
b. Licensing arrangement
c. Strategic alliance
d. Joint venture
e. Direct ownership arrangement
Marketing research is best defined as:
a. the systematic design, collection, interpretation, and reporting of information to help
marketers solve specific marketing problems or take advantage of market opportunities.
b. a framework for the day-to-day management and structuring of information gathered
by marketers.
c. a continuous gathering of data of an organization to make marketing decisions.
d. the collection of data from secondary sources and internal documents.
e. an intuitive process for making decisions based on personal knowledge and
experience.
The executive judgment method of sales forecasting is very accurate in predicting
future sales.
a. True
b. False
Marketing ethics refers to principles and standards that define acceptable conduct in
marketing.
a. True
b. False
Non-price competition allows a company to increase its brand’s unit sales through
means other than changing the brand’s price.
a. True
b. False
A person receives information inputs through the senses.
a. True
b. False
A marketer that targets customers based on marital status and the presence and age of
children is using:
a. behavioristic segmentation.
b. lifestyle variables.
c. psychographic variables.
d. family life cycle.
e. phase of life segmentation.
A person, group, or organization that has a meaning it intends and attempts to share
with a receiver or an audience is a:
a. communication channel.
b. source.
c. relay channel.
d. decoder.
e. sender.
Customer density and distribution are important factors in:
a. prospecting.
b. motivating salespeople.
c. creating sales territories.
d. compensating salespeople.
e. establishing sales force objectives.
Jessie was out with a group of friends this evening for dinner at a local restaurant and
then a movie. While the service at the restaurant was slow, and the food was not very
good, Jessie still had a great time and left with a positive opinion of the restaurant
experience. Jessie’s purchase decision was likely influenced by .
a. Physical surroundings
b. Social surroundings
c. Purchase reasons
d. Buyer’s momentary mood and condition
e. Pressures created by time factors
Price fixing, predatory pricing, and failure to disclose the full price associated with a
purchase are pricing activities that do not result in ethical issues.
a. True
b. False
Marketing costs consume about one-half of a buyer’s dollar.
a. True
b. False
The main focus of a marketing information system is on .
a. the coordination of external information sources
b. classifying data into the proper information categories
c. data storage and retrieval
d. accurate maintenance of inventory levels
e. gathering information
A narrow product mix with a deep product line would most likely be carried
by__________.
a. mass merchandisers
b. supermarkets
c. discount stores
d. specialty retailers
e. warehouse showrooms
The use of sampling is declining.
a. True
b. False
Scenario 11.1
Use the scenario to answer the questions.
Cheetos Fat-free Crunchies is a product developed through continuous innovation.
Cheetos engineered a technique for making low-fat snacks that taste delicious and also
remain fresh for a longer duration. It introduced Fat-free Crunchies in limited markets
in 2012 and began nationwide distribution in 2013.
About 18 months later, a series of ads by Cheetos’ competitors was aired to
counterclaim that Cheetos Crunchies actually contained 1.5 grams of fat along with
some percentage of preservatives and additives. Research showed that Cheetos
Crunchies was not well-received by certain groups of customers. To retain its consumer
base, Cheetos reduced the remaining fat of Chrunchies to 0 grams, took out the
preservatives, and improved the taste.
Refer to Scenario 11.1. In 2012, which of the following phases of the new-product
development process was
Cheetos in?
a. Idea screening
b. Product development
c. Test marketing
d. Business analysis
e. Idea generation
Only one variable can be used to segment a market.
a. True
b. False