Breyer’s introduced a new line of ice cream flavors for sale in elegant black containers.
This was done on a limited scale to determine consumer reactions before national
distribution of the product. Breyer’s new product was in the __________ stage of the
new-product process.
a. commercialization
b. screening and evaluation
c. business analysis
d. development
e. market testing
Answer:
Figure 1.
In Figure 1. above, “C” represents which stage of the consumer purchase decision
process?
a. purchase decision
b. information search
c. problem recognition
d. alternative evaluation
e. postpurchase behavior
Answer:
Evergreen Air Center is the world’s largest parking lot for unwanted commercial
aircraft. Airlines pay from $750 to $5,000 monthly for the storage services provided by
Evergreen. Prior to September 2001, the company had 140 discarded airplanes at its
Arizona facilities and was growing at a rate of about six planes monthly with about two
per month sold for parts and/or scrap metal. After calamity struck the airline industry in
September 2001, the airlines have retired over 1,000 planesmany of which have found
their way to Evergreen. Now the actual number of planes stored at Evergreen differs
significantly from the prediction based on previous behavior in effect before September
2001. This difference is referred to as the __________.
a. contribution margin
b. marginal trend
c. breakeven point
d. planning gap
e. sales differential
Answer:
The type of appeal used to imply either directly or subtly that the product is more fun or
more exciting than competitors’ offerings is referred to as a(n) _________.
a. authoritarian appeal
b. coercive appeal
c. family appeal
d. humorous appeal
e. sex appeal
Answer:
Which of the following statements regarding order getters is most accurate?
a. Order getters often replenish a retailer’s inventories.
b. Order getters handle orders obtained on inbound telemarketing
c. Order getters typically process reorders for products already sold by the company.
d. Order getter sales calls traditionally require the lowest financial investment from the
firm.
e. Order getter sales calls traditionally require a high per-sales-call cost.
Answer:
Organizational buying behavior is similar to consumer behavior in some ways and
different in others. One commonality is that both
a. use five different stages in the purchase decision process.
b. use formal evaluation criteria when choosing among alternative brands.
c. are affected by derived demand.
d. have unlimited options for suppliers.
e. rely on gatekeepers to control product information.
Answer:
A(n) __________ is a privately owned organization that serves its customers to earn a
profit so that it can survive.
a. agency
b. business firm
c. institution
d. nonprofit organization
e. entity
Answer:
Organizations attempt to reduce the inconsistency of service delivery through
a. higher incentives to employees for satisfactory performance.
b. pay reductions for poor employee performance.
c. the reduction of customer contact points in the service delivery process.
d. standardization and training.
e. employing technology.
Answer:
CPW (Cereals Partners Worldwide) is a __________ designed from the start to be a
global business. It joined the cereal manufacturing and marketing capability of General
Mills with the distribution clout of Nestl.
a. dual distribution partnership
b. multichannel distribution system
c. cooperative distribution channel
d. strategic channel alliance
e. bilateral trade cooperative
Answer:
One disadvantage of using magazines as an advertising medium is
a. the inability to target specific audiences.
b. the short lead-time needed to place an ad.
c. the relatively high cost.
d. the lack of noise associated with the use of magazines in the communication channel.
e. the trend to create sex or humor appeals often dilutes the effectiveness of the
message.
Answer:
Twenty years ago, the Mississippi Gulf Coast was a nice place to vacation with a white
sandy beach, golfing opportunities, resort hotels, and good seafood restaurants. With the
addition of casinos, the Gulf Coast improved its odds of being a tourist destination for
more travelers. This is an example of a __________ strategy.
a. market-product grid
b. diversification
c. market modification
d. product modification
e. product repositioning
Answer:
While both traditional media and social media can reach either a large audience or a
niche audience, social media are different from traditional media because
a. production of traditional media requires specialized skills and a team of people.
b. traditional media include Facebook and Twitter.
c. social media only reaches niche audiences.
d. social media is relatively expensive to produce.
e. the content of social media cannot be altered after publication.
Answer:
Suppose L.L. Bean, a catalog retailer, has set a goal to reduce merchandise returns by
20 percent for the holiday season. The firm would MOST LIKELY have set a(n)
__________ goal.
a. profit
b. market share
c. employee welfare
d. customer satisfaction
e. social responsibility
Answer:
Market segmentation involves aggregating prospective buyers into groups that (1) will
respond similarly to a marketing action and (2)
a. respond similarly to marketing messages.
b. have common needs.
c. have similar shopping styles.
d. will become loyal customers.
e. will become stakeholders of the organization.
Answer:
Which of the following statements regarding a trade-in allowance is most accurate?
a. A trade-in allowance is a noncash exchange of one product for another of equal or
greater value.
b. A trade-in allowance is an effective way to lower the price a buyer has to pay without
formally reducing the list price.
c. A trade-in allowance is a cash-back payment when a more expensive item is replaced
with a less expensive item.
d. A trade-in allowance is the return of money based on proof of purchase.
e. A trade-in allowance is a cash payment to a retailer for extra in-store support or
special featuring of the brand.
Answer:
Consider the PLC product photos above. Which stage of the product life cycle (PLC) is
the Apple MacPro desktop computer?
a. introduction
b. growth
c. maturity
d. accelerated development
e. decline
Answer:
Which of the following are high in credence properties?
a. clothing
b. vacation
c. jewelry
d. houses
e. medical diagnoses
Answer:
All of the following are types of sales objectives EXCEPT:
a. input-related
b. employer-related
c. competitor-related
d. behaviorally-related
e. output-related
Answer:
The “Crash the Super Bowl” sales promotion sponsored by PepsiCo, where people
submit a 30-second TV ad for a $1 million prize, is an example of a __________.
a. deal
b. sweepstakes
c. sponsor-generated content
d. contest
e. loyalty program
Answer:
Kellogg’s different cereals are each targeted at a different type of user. This is an
example of multiple products aimed at multiple markets. Manufacturing these different
cereals is clearly more expensive than producing one but seems worthwhile if it adds to
the manufacturer’s sales revenues and profits, doesn”t reduce quality or increase price,
and
a. conforms to all FDA guidelines.
b. uses the same promotion and packaging for all segments.
c. decreases the cost of the physical plant.
d. stabilizes the sales revenues and profits.
e. better serves customers’ needs.
Answer:
Michael Angelo’s Pepperoni Mini Calzones are easy-to-prepare snacks, but the
manufacturer believes customers are not buying the product as predicted because they
are unfamiliar with calzones. The manufacturer is interested in employing a sales
promotion technique that will communicate the ease of preparation and encourage
customers to try the product. Which method would it MOST LIKELY employ?
a. Advertise on television showing a mother preparing the snack in less than 60 seconds
in the microwave.
b. Provide a premium to build customer goodwill by receiving reduced price
merchandise.
c. Create a sign with the simple preparation steps for display on grocers’ freezer doors
where the product is shelved..
d. Use a rebate to encourage customers to purchase the snack and increase customer
confidence in the product.
e. Use a demonstrator hired by the company to prepare the snack in a grocery store and
offer cooked, bite-sized portions of the snack to shoppers.
Answer:
Procter & Gamble created an advertisement for its High Endurance men’s
antiperspirant. In terms of the communication process, the __________ of the
information in the product’s advertisement is Procter & Gamble, its manufacturer.
a. receiver
b. source
c. message
d. decoder
e. communication channel
Answer:
An international company that wants indisputable proof that its suppliers maintain a
high level of quality management could ask the company to
a. apply for an ISO 9000 certification.
b. also meet ISO 14000 requirements.
c. enter into a supplier alliance.
d. show how it is listed in the NAICS to prove its quality focus.
e. engage in reciprocity agreements.
Answer:
What is the marketing objective for the introduction stage of the product life cycle?
a. harvesting
b. market share
c. stress differentiation
d. gain awareness
e. maintain brand loyalty
Answer:
A few years ago, Who Wants to Be a Millionaire premiered as the first nighttime TV
game show in several decades. The marketing goals for the show included making
television viewers aware of its existence and generating enough excitement about the
show so that millions of viewers would watch the first episode. Based on this
description, the TV show was in what stage of its product life cycle?
a. introduction
b. growth
c. maturity
d. decline
e. accelerated development
Answer:
The term __________ refers to several methods by which individuals can avoid
receiving unsolicited product or service information.
a. opt-in
b. consent-out
c. opt-out
d. permission-denied
e. authorization-denied
Answer:
Geico ads that feature cavemen, a gecko, or a stack of money with eyes are using which
type of advertising appeal?
a. reminder
b. fear
c. humor
d. sex
e. cognitive
Answer:
Which of the following statements regarding cold canvassing is most accurate?
a. Currently there are no federal regulations regarding cold canvassing.
b. In general, cold canvassing is effective only for costly items.
c. Cold calling is the most common type of sales prospecting both in Asia and Latin
America.
d. About 75 percent of U.S. consumers consider cold canvassing an intrusion on their
privacy.
e. The Telephone Consumer Protection Act not only protects citizens, it ensures the
rights of telemarketers to call anyone listed in a public directory, whether they choose to
be called or not.
Answer:
An announcement that German pharmaceutical giant Bayer is looking for a buyer for its
household insecticide business as part of its restructuring program is an example of
which type of publicity tool?
a. lobbying
b. events management
c. disclosure statement
d. news release
e. public service announcement
Answer:
Google’s first search engine was called “__________.”
a. Pack rat
b. Back-Rub
c. Rub-down
d. Black eye
e. elgoog
Answer:
Which of the following pieces of information is used in the evaluation phase of the
strategic marketing process?
a. action memos to correct problems and exploit opportunities
b. charts assigning responsibilities for actions and deadlines
c. revenues associated with each point of market share
d. trends for industry and competitors
e. possible cannibalization effects on other products in the line
Answer:
Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her
staff of 60 perform everyday services, such as walking the dog, picking up cleaning,
waiting for the repairman, and going to the post office, for people who are too busy to
perform these simple acts. She is such a caring person and so well liked that her
customers recommend her instead of her business to people who are looking for
someone to perform similar services. Their inability to see the distinction between
Arenas and her 2 Places at 1 Time concierge service is an example of which unique
characteristic of services?
a. intangibility
b. impressionability
c. incongruity
d. inseparability
e. inflexibility
Answer: