United Clothes, a leading manufacturer of knitwear in Italy, expanded its operations to
include retail outlets in the
United States and South America. This type of channel is called:
a. horizontal integration.
b. vertical integration.
c. multilevel integration.
d. retail integration.
e. merchandising integration.
A customer’s interpretation and response to a price depends on what the customer
receives from a purchase compared to what he or she gives up to make a purchase.
a. True
b. False
Which of the following issues is least important in using co-branding effectively?
a. The brands involved should represent a complementary fit in a customer’s mind.
b. The brands that are teamed together should not lose their individual identities.
c. The brands involved should be owned by the same company.
d. It should be clear to customers which brand is the main brand in a co-branded
product. e. Marketers should understand when a co-branded product is unsuccessful.
Time dimensions on the buying decision include how long it may take to become
knowledgeable about a product.
a. True
b. False
Discretionary income is associated with all of the following except:
a. automobiles.
b. education.
c. pets.
d. furniture.
e. food.
The first sign of a problem is usually a departure from some normal function, such as a
failure to attain objectives.
a. True
b. False
The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge,
Louisiana, to Cincinnati. Which of the following methods would be the cheapest for
transporting this cargo?
a. Pipelines
b. Waterways
c. Trucks
d. Airways
e. Railroads
Favorable conditions in the marketplace environment that could produce business
rewards for the organization if acted upon properly are called:
a. strengths.
b. market strategies.
c. market niches.
d. threats.
e. opportunities.
Under one of the methods of business buying, products are standardized and graded
according to characteristics such as size, shape, weight, and color, and a business buyer
purchases these products simply by specifying their attributes such as quantity and
grade. This describes the method of business buying known as .
a. reciprocation
b. inspection
c. description
d. sampling
e. negotiation
Which of the following is not a benefit of multiple packaging?
a. Increases the amount of the product available at the point of consumption
b. Increases demand
c. Increases consumer acceptance of the product
d. Makes handling or storage easier
e. Offers more product diversity
When Glidden introduced interior house paint in plastic gallon containers, including a
no-drip spout, this was an example of packaging.
a. category-consistent
b. innovative
c. traditional
d. green
e. convenience
Scenario 11.2 Use the scenario to answer the questions.
Jonathan Moore, President of Polar Manufacturing Company, has just reviewed the
performance reports for the previous year and observes that there are certain areas in
which the company needs to improve. He specifically feels that Polar’s product mix can
be managed in a more effective way. Jonathan summons a meeting of all the managers
responsible for each of the product lines that Polar currently manufactures. The group
reaches a consensus that the complete industrial product line of ice chests needs to be
eliminated. It contemplates to do so by letting the product decline without making any
changes in the marketing strategy or product. The group also decides to delete Polar’s
line of personal thermal underwear within a week, owing to its unprofitability. While
discussing these strategies, the group also uncovers several customer segments at which
new products could be targeted. The managers decide to assemble a group of people
from all functional areas of the company and confer them responsibilities for all aspects
of the new-product development. Refer to Scenario 11.2. The decision to delete the
industrial product line of ice chests is an example of deleting a product through a(n) ,
while the decision to drop the thermal underwear line is an example of a(n) .
a. run-out; phase-out
b. phase-out; immediate drop
c. immediate drop; run-out
d. immediate drop; phase-out
e. phase-out; run-out
The immediate drop approach to product deletion generates a sales spurt just before
removing a product from the market.
a. True
b. False
Home Depot has developed software for iPhones that will allow users to match colors
in photographs with the store’s selection of carpets. This is an example of a(n)_____:
a. application (app).
b. keypad function.
c. voice-activated system.
d. digital system.
e. interactivity.