Obtaining a specialty product involves a considerable amount of comparison activity.
a. True
b. False
Organizations should define themselves not according to the products they produce, but
according to:
a. how profitable they are.
b. the price of their stock.
c. the abundance of their product selection.
d. how they treat employees.
e. how they satisfy customers.
The equation a buyer applies to assess a product’s value is:
a. value = monetary price – customer benefits.
b. value = customer costs – customer benefits.
c. value = customer benefits – customer costs.
d. value = customer benefits – monetary price.
e. value = customer benefits – time and effort.
Inelastic demand simply means that:
a. buyers will not make a modified rebuy purchase for an item.
b. demand depends on how many items are purchased.
c. a price increase or decrease will not significantly change the demand for an item.
d. when the price of an item goes up, demand for that item goes down.
e. when the supply of an item is reduced, the price of the item will increase.
One common mistake in questionnaire construction is developing the questionnaire
before objectives have been established.
a. True
b. False
The information yielded by market segment profiles usually is not very useful later in
the marketing process.
a. True
b. False
Jon’s colleagues at work want to take a skiing trip. Jon grew up in Colorado and learned
to ski as a young child so the group consults him about the best slopes and ski gear
needed for the trip. Jon’s role is that of an opinion leader.
a. True
b. False
Greg chooses to have his hunting equipment store in a location away from the main part
of town so that he can have a large parking lot and an outdoor range for customers to
test out his merchandise. Greg’s store is:
a. in a traditional business district.
b. a rural shopping center.
c. in a neighborhood shopping center.
d. a non-traditional shopping center.
e. a freestanding structure.
is the stage of the business cycle where the unemployment rate is low and total income
is relatively high.
a. Repression
b. Prosperity
c. Recovery
d. Recession
e. Depression
The strength of a person’s “buying power” depends on economic conditions and:
a. his or her level of income.
b. the size of resources that are used for purchases.
c. how much the person will buy.
d. his or her spending pattern.
e. his or her levels of median wealth.
Morgan is interested in upgrading to a new sofa for her apartment. She browses the
Internet to check new models of her favorite sofa brand and gets information on the
style and color of couches. However, she can’t actually sit
on a new model of sofa to determine its comfort level. Morgan is able to evaluate the
modifications to the________sofa, but not the________
a. quality; functional
b. quality; aesthetic
c. aesthetic; functional
d. functional; quality
e. functional; aesthetic modifications.
Price is seldom used as a competitive tool.
a. True
b. False
Scenario 13.1
Use the following to answer the questions.
Liz Claiborne Inc. markets several different brands, under their own Claiborne name
label, as well as others. Their primary brands, such as Liz Claiborne, Liz & Co, and
DKNY, are sold to wholesalers. These brands are then available through retail
department stores such as Kohl’s and Macy’s. Their wholesale-based brands division is
positioned as customer-focused and cost-efficient. Their premium brands division
includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands
are sold through stores that are owned by Claiborne.
Refer to Scenario 13.1. Which of the following is most likely the primary factor Liz
Claiborne Inc. used when selecting the marketing channel for its Juicy Couture brand?
a. Characteristics of the intermediaries
b. Product attributes
c. Type of organization
d. Marketing environmental forces
e. Competition
Scenario2.1
Use the following to answer the questions. Southwest Airlines has a history of being
able to retain its employees due to the atmosphere and culture of the company.
Employees have been known to dress up in costume on an airplane, engage in “games”
with the passengers, and generally provide a fun atmosphere for traveling. While other
airlines have low rates of customer satisfaction, Southwest tends to maintain a high
rating with its customers. Recent gas price hikes have caused most airlines to charge for
checked luggage and to fill every flight to its maximum, adding to the negative
experience of airline travel. Southwest keeps its costs low through several methods, one
being that they do not serve meals on flights, or provide pre-boarding passes. The
typical flight is two hours or less and occurs between several selected cities rather than
flying to practically anywhere in the country. Southwest is known for its low fares, its
dependability, and its on-time flights.
Maintaining the current culture of “fun” for Southwest Airlines’ employees is most
likely a(n):
a. marketing strategy.
b. marketing objective.
c. organization resource.
d. environmental force.
e. overall organizational objective.
Bauman Flooring found a supplier of very inexpensive fibers that could be used to
produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff
competition in the medium-grade carpet industry, it started using the new material in all
of its carpeting and also reduced its prices. This is an example of a(n):
a. aesthetic modification.
b. line extension.
c. brand extension.
d. functional modification.
e. quality modification.
A consumer contest is an example of:
a. personal selling.
b. sales promotion.
c. advertising.
d. word-of-mouth marketing.
e. public relations.
Children often achieve own purchase experiences.
a. consumer socialization
b. patronage motives
c. role conflict
d. cognitive dissonance
e. selective distortion by observing parents and older siblings in purchase situations and
then through their
Intensive competition causes price increase during the growth stage of the product life
cycle.
a. True
b. False
Which of the following is an example of a trade sales promotion method?
a. Frequent-user incentives
b. Point-of-purchase displays
c. Retailer coupons
d. Free merchandise
e. Money refunds
Marketers who view political forces as being beyond their control are taking a (n)
forces. a. reactive
b. aggressive
c. proactive
d. competitive
e. liberal
How is it possible to increase the response rate of a mail survey?
List and discuss the seven phases of the new-product development process.
Compare and contrast price skimming and penetration pricing.
List the three major ethnic subcultures in the United States that the U.S. marketers
focus on.
Discuss the advantages of test marketing. Also, state the risks associated with it.