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The government sector (federal, state, and local) is a minor segment of the business
market.
a. True
b. False
Answer:
A person buying a Valentine's Day gift for a significant other is more likely to go
through all of the steps in the AIDA process than a person buying a gift certificate for
his or her mail carrier.
a. True
b. False
Answer:
Diaz
John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop
called Diaz in a small upper- middle-class neighborhood. It rapidly became popular
because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees
from around the world, plus coffee-making necessities such as grinders and brewers.
Within ten years, Diaz was operating a lucrative mail-order business in addition to his
coffee shop. Upon entering the shop, the first thing the customer sees is a countertop
crowded with all of the machinery needed for making a perfect cup of coffee.
Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one
wall hold books about coffee for patrons to read while they sip. The smell is
intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they
leave. The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300
per pound Kopi Luwak from Sumatra.
Refer to Diaz. If Diaz wanted to grow his business and granted another owner the rights
to use his format and approach to doing business, he would be involved in:
a. trading up.
b. m-commerce.
c. direct marketing.
d. product and trade name franchising.
e. business format franchising.
Answer:
BMW of North America sponsored an instructional driving school for teenagers in
major cities across the U.S. Teens received a training session that included driving
techniques and accident avoidance skills.This is an example of:
a. event advocacy
b. lobbying
c. product placement
d. consumer education
e. issue sponsorship
Answer:
Your best friend has sought your advice on what type of clothing she should buy for a
job interview. If she gets the job, she will be the assistant to the producer of her favorite
television program. She really wants this job and considers it a once in a lifetime
opportunity. By asking your help with her wardrobe, your friend is most likely trying
to:
a. eliminate cognitive dissonance
b. eliminate the low involvement in the decision
c. reduce perceived risk of negative consequences
d. increase the chances of selective exposure
e. increase the motivation involved in the decision
Answer:
A business is concerned with many day-to-day activities. Some of the most important of
these activities are the planning and development of a product, its ability to
communicate value, its pricing policy, and the distribution strategy. These activities are
all a part of:
a. a control system
b. marketing
c. accounting
d. production
e. human resources
Answer:
Advantages of this global branding strategy include greater identification of the product
from market to market and ease of coordinating promotion from market to market.
a. adaptation
b. one brand name everywhere
c. piggybacking
d. different brand names in different markets
e. product modification
Answer:
Which of the following products is most likely to use a pulsing media schedule?
a. Romance novels
b. Gasoline
c. Band instruments
d. Baking soda
e. Ceiling fans
Answer:
The electricity for lighting outdoor billboards is powered by transformers. The operator
of a company that installs and manages billboards has purchased many such
transformers. Today, he plans to buy a replacement for one that was destroyed by a
recent hurricane. Before making this purchase, he will look at cost and also see if he
can find one that is more weatherproof. He wants to make sure he buys the best
transformer for the job and that he does not pay more money than he should. In other
words, he will engage in decision making.
a. limited
b. extended
c. habitual
d. classical
e. routine
Answer:
The higher your _____ , the higher your purchasing power:
a. gross income
b. social class
c. disposable income
d. cost of living
e. inflation index
Answer:
Reference groups can be categorized very broadly as either:
a. primary or secondary
b. persuasive or nonpersuasive
c. direct or indirect
d. positive or negative
e. personal or nonpersonal
Answer:
The statement on a toothpaste box that brushing twice a day with the paste will remove
90 percent of all tartar from the user's teeth is an example of a(n):
a. implied warranty.
b. functional label.
c. UPC disclaimer.
d. express warranty.
e. universal warranty.
Answer:
Groupon.com offers discounts on products and services in specific cities. The concept
of Groupon is that the discount for the product or service can be claimed only if a
certain number of people purchase it. Groupon would BEST be described as a:
a. media sharing site
b. microblog
c. social networking site
d. virtual world
e. social commerce site
Answer:
Campbell's soup has been promoted with television commercials, radio spots,
newspaper coupons, and magazine advertisements. In the communication process, these
media served as ____ for transmitting the message.
a. senders
b. decoders
c. encoders
d. channels
e. receivers
Answer:
A(n) ____ describes and estimates the size and sales potential of market segments of
interest to the firm and assesses key competitors in these market segments.
a. marketing orientation
b. environmental scan
c. marketing mix audit
d. target market strategy
e. market opportunity analysis
Answer:
A professor sent the following memo to his department chair for his authorization:
Glen: I need to purchase a camera, Mac computer, and microphone for the selling
center lab #2 just like we did for lab #1. This buying situation should be described as a:
a. make-or-buy.
b. value buy.
c. new buy.
d. modified rebuy.
e. straight rebuy.
Answer:
___ are retailers that compete on the basis of low prices, high turnover, and high
volume. a. Convenience outlets
b. Discount stores
c. General stores
d. Department stores
e. Specialty stores
Answer:
Cultural values and norms are passed down to children through the process of:
a. accumulation
b. encroachment
c. assimilation
d. socialization
e. manifestation
Answer:
Janet will only purchase Crate and Barrel products for her home. The products are
expensive, but Janet feels they have the highest quality and will last a very long time.
These products represent products.
a. heterogeneous shopping
b. specialty
c. homogeneous shopping
d. convenience
e. business
Answer:
Trade association meetings, conferences, and conventions are an important aspect of
sales promotion and a growing, multi-billion-dollar market.
a. True
b. False
Answer:
Universal product codes (UPCs) can perform all the following functions EXCEPT:
a. allow scanners to match codes with brand names, package sizes, and prices.
b. print product and price information on cash register tapes.
c. assist retailers in preparing records of customer purchases.
d. allow retailers to accurately track sales and control inventories.
e. provide the detailed nutritional information required by the FDA.
Answer:
Ninety-six percent of USAA home insurance policy holders report that USAA
representatives meet their commitment in calling back customers quickly about claims.
The most likely result of USAA's efforts is:
a. management empowerment
b. retailer-customer synergy
c. customer satisfaction
d. transactional marketing
e. disintermediation
Answer:
Which channel relationship is less ambiguous than an arm'slength relationship but
without the longerterm and/or capital investment required to achieve full integration?
a. Co-opetitive
b. Cooperative
c. Functional
d. Integrated
e. Supplemental
Answer:
When a company engages in _______ , it is implementing strategies that attempt to
shape the external environment within which it operates.
a. synergistic control
b. environmental management
c. environmental control
d. market control
e.reactivemanagement
Answer:
WrestlingMerchandise
Market research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and
18- to 44-year-old males are most likely to watch a televised professional wrestling
event or attend a live match. Wrestling events are regularly broadcast in 120 different
countries. Merchandise licensed by World Wrestling Entertainment (formerly known as
the World Wrestling Federation) can be purchased at JCPenney and Walmart. Clothes
for adults are used to reach markets that may not buy action figures, video games, and
novelty candy, but who are still proud to sport World Wrestling Entertainment (WWE)
trademarks.
Refer to Wrestling Merchandise. Since the WWE must use different methods to reach
its three largest target markets, it must use:
a. undifferentiated targeting
b. concentrated or niche targeting
c. multisegment targeting
d. demarketing
e. repositioning
Answer:
E-cigarettes
Smoking inflames nonsmokers and claims the lives of more than 400,000 smokers each
year, so the electronic cigarette is a welcomed alternative. Electronic cigarettes, called
e-cigarettes, are battery-powered devices that emit a vapor from nicotine, flavorings,
and other chemicals. It looks like a cigarette and allows smokers to inhale the nicotine
vapor in places where smoking is not allowed. The product has been touted as a means
to quit smoking as well. However, critics, especially the Food and Drug Administration
(FDA), claim that "vaping" poses risks. In fact, the FDA claims its tests revealed a toxic
chemical that is found in antifreeze as well as other carcinogens. The FDA blocked a
shipment of the product from China and banned the sale of this product in the United
States. In addition to the safety issue, the FDA is concerned that children might be
attracted to this product because it comes in flavors other than traditional menthol, such
as bubble gum, chocolate, and strawberry. The FDA wants this product to go through
the same rigorous testing that drugs must go through before being marketed. However,
the FDA's authority over this product is questioned. While Congress has recently given
the FDA authority over tobacco products, this is not a tobacco product and the
Electronic Cigarette Association is fighting the ban.
Refer to E-cigarettes. E-cigarette manufacturers claim they are not trying to sell this
product to children. Rather, they are offering an alternative to combustible tobacco for
committed smokers. These smokers comprise the manufacturers':
a. target market
b. buying center
c. consumer cluster
d. demographic sample
e. mass market
Answer:
Jennifer owns a greeting card store where she also sells women's purses, Crocs shoes
for the whole family, Jibbitz charms, cell phone skins, Sandy Lion stickers, Yankee
candles, Godiva chocolates, Precious Memories figurines, beaded jewelry, and stuffed
animals. Jennifer uses multibrand merchandising.
a. True
b. False
Answer:
Global marketing standardization:
a. is becoming less popular with the large multinationals.
b. encourages product, packaging, and advertising variations for each nation or local
market.
c. actually raises production costs.
d. presumes markets throughout the world are becoming more alike.
e. is more popular with consumer products than with industrial goods.
Answer:
Because formal committees are often established to purchase business products,
members of buying centers can be readily identified on formal organizational charts.
a. True
b. False
Answer:
One advantage of Internet surveys is dramatically reduced costs.
a. True
b. False
Answer:
The types of products people purchase using routine response behavior are typically:
a. frequently purchased, low-cost items
b. frequently purchased, high-cost items
c. infrequently purchased, low-cost items
d. infrequently purchased, high-cost items
e. all types of items, regardless of price or frequency of purchase
Answer:
A ____ allows users to decide which content is promoted on a given Web site by voting
that content up or down.
a. media sharing site
b. social networking site
c. review site
d. virtual world
e. social news site
Answer:
Market segmentation:
a. is a scientific technique for selecting ways to attract specific population samples
b. is rarely done by consumer products companies
c. only needs to be done once for each product
d. should be redone periodically
e. should be done every time a product enters a new stage of its life cycle
Answer:
Campbell's
Most people recognize Campbell's as a brand of soup, but Campbell's also
manufactures Pace Picante Sauce, Pepperidge Farms products, Prego Sauce, Swanson
Broth, and V8 juice. Campbell's International division offers more than 20 brands of
soups, sauces, beverages, and baked snacks in the Asia Pacific region, Greater Europe
and Latin America. Products such as Arnott's biscuits and crackers and Bi Band soups
are well known overseas. Campbell's products are sold in more than 120 countries.
Refer to Campbell's. Of the following what is probably Campbell's biggest labeling
concern in its international markets?
a. printing accurate warranties on each label
b. correctly affixing the UPC code on each label
c. eliminating any persuasive labeling as such labels are not effective on the
international market
d. making sure the labels are aesthetically pleasing
e. translating ingredient, promotional, and instructional information
Answer:
One of the most critical global supply issues for importers of any size is coping with the
legalities of trade in other countries.
a. True
b. False
Answer:
What is public relations? What is publicity?
Answer:
Name and describe the three targeting strategies. For each strategy, name one advantage
and one disadvantage of using the strategy.
Answer:
List, in correct order, the steps in segmenting a market.
Answer:
Assume that you are the promotions manager for a lingerie company that has decided to
market its product line in Brazil, Mexico, Italy, France, and Japan. Your company
wishes to use a global marketing standardization strategy. In general terms, explain how
your company would advertise in these different countries.
Answer:
Name and briefly define the two major types of advertising.
Answer:
What is the difference between fixed and variable costs? Give examples of each type of
cost.
Answer:
Identify at least three negatives of global trade.
Answer:
Last quarter, Abingdon Company sold 1,000 decorative decals for $1 each; Cedar
Decaliania sold 200 decorative decals at $4 each; Creative Decals sold 500 decals at $2
each; and Donnelly, Inc. sold 300 decals for $4 each. Assuming that the four companies
are the only firms competing in the decorative decal market, calculate unit and dollar
market share for each company for last quarter. For each company, which market share
figure might be used in an advertisement for that company?
Answer:
Describe outsourcing. How does outsourcing affect the efficient deployment of supply
chain management?
Answer:
Compare and contrast an express warranty and an implied warranty.
Answer:
What is benefit segmentation? For toothpaste, list six benefits that might be sought by
consumers. For each benefit, give an existing brand name that best exemplifies
segmentation according to that benefit.
Answer:
What is a multinational corporation? Discuss two multinational corporations with
which you are familiar.
Answer:
An entrepreneur has set up a company to manufacture and market GPS systems for
hunters. He has decided a sales orientation would best suit his new company. What are
important considerations for this firm when it adopts this orientation? What are
potential pitfalls of this orientation the owner needs to understand?
Answer:
What is a segmentation base (or segmentation variable)? Name the common
segmentation bases used by marketers to segment consumer markets.
Answer:
Distinguish between owned media and earned media and give several examples of each.
Answer:
List in order the four steps used to set the right price for a product.
Answer:
Products can be classified as either business/industrial or consumer products. Explain
what distinguishes business products from consumer products and why it is important
to understand this distinction.
Answer:
Describe which pricing method (skimming, penetration, or status quo) would be most
appropriate for each of the following products: (1) a new kind of automatic vacuum
cleaner; (2) brightly colored wooden blocks to be used as a child's toy; (3) a new,
lowcost, nocalorie fat substitute; (4) a home computer; and (5) a designer perfume.
Briefly justify your answers.
Answer:
