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Every night, Universal Studios Japan hosts a fireworks display. The theme park recently
came under government investigation when allegations were made that the park was
detonating more than 50 pounds of explosives in its nightly fireworks displays. In the
small nation, the use of explosives is stringently controlled. This is an example of how
______ factors can influence a business.
a. competitive
b. legal and political
c. economic
d. technological
e. cultural
Answer:
Refer to Turkey Hunting Equipment. Primos Hunting Calls is another company that
manufactures wild turkey callers. It claims each of its callers is able to cluck, shriek,
and kee-kee (three sounds that have been known to attract the wild turkey). If you buy
one of Cost's callers, you are limited to one sound. In this way, Primos has implemented
a(n) ______ strategy.
a. multisegment
b. product differentiation
c. undifferentiated marketing
d. target market
e. repositioning
Answer:
_____costs do not change as output is increased or decreased.
a. Asset
b. Variable
c. Fixed
d. Symmetrical
e. Status quo
Answer:
The population from which a sample in a marketing research study will be drawn is
referred to as the:
a. universe
b. market
c. test market
d. focus group
e. control group
Answer:
is information technology that replaces the paper documents that usually accompany
business transactions.
a. Business prioritizing
b. Electronic data interchange
c. Just-in-time inventory
d. Real-time inventory
e. Direct sourcing
Answer:
A soft drink manufacturer thinking of investing in a bottling plant in the Czech
Republic should know the nation is proud of the fact it is among the world's biggest
beer drinkers. Czechs consume an average of onehalf liter of beer a day for every man,
woman, and child in the country. The _____ environment of this country could very
easily prevent the soft drink bottling company from succeeding.
a. demographic
b. economic
c. cultural
d. political
e. technological
Answer:
When many substitute products are available, demand is inelastic.
a. True
b. False
Answer:
Under the ____ , all sales have an implied warranty.
a. Label Law
b. Lanham Act
c. Bill of Rights
d. Good Housekeeping Seal
e. Uniform Commercial Code
Answer:
The competitive environment of a business encompasses the number of competitors the
firm must face, the relative size of these competitors, regulatory agencies, and the
degree of interdependence within the industry.
a. True
b. False
Answer:
A____ is a written document or professional presentation that outlines how a company's
product will meet or exceed the client's needs.
a. customer profile
b. needs assessment
c. sales proposal
d. qualifying document
e. forecast of needs
Answer:
Which of the following transportation modes can most easily determine the location of
a package en route between shipper and receiver?
a. Air
b. Truck
c. Rail
d. Pipe
e. Water
Answer:
Walker Farms heard from many of its customers that they would like organic produce.
As a result, Walker Farms became a certified organic farm. Walker realized that while
not all consumers were willing to pay the higher prices for organic produce, his
customers wanted the organic produce. Walker realized:
a. he missed sales by not concentrating on the average customer
b. different customer groups have different needs and wants
c. he is a sales-oriented farm
d. his business is about selling the cheapest vegetables
e. his aim is a goal of profit through maximum sales volume
Answer:
Increasing globalization of markets and competition provides a reason for multinational
firms to consider new- product development from a worldwide perspective.
a. True
b. False
Answer:
AppleStores
Apple, Inc. opened its first Apple Store in 2001 and currently has hundreds of stores
spanning several countries. Many of the Apple Stores are inside malls, but Apple also
has several freestanding stores, which they call their flagship stores, with each looking a
little different on the outside. These are located in New York City, Boston, Los Angeles,
Chicago, San Francisco, Montreal, Tokyo, and Osaka.
The store in New York City is a glass cube with a glass cylindrical elevator and spiral
staircase that leads to an underground store. Inside, they have long tables displaying
products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other
accessories. All these products are accessible to customers who can try them out and
ask various questions of informed associates. The walls are mostly metallic, and the
signs are all backlit.
All stores have a Genius Bar where customers can receive technical advice or set up
service and repair for their products. To address the needs of the many iPod users, some
stores, such as the New York store, have set up a separate iPod Bar where customers
can get their own technical assistance. They also have an iMac station for kids who
want to try out games and learning products and a theater for workshops, product
training sessions, and special presentations.
Apple introduced the handheld Easy Pay system where customers don"t have to wait in
line to purchase products. With a simple click of a paperless, handheld credit card
scanner, the employee brings the cash register to the customer. Items can be rung up
anywhere on the show room floor. Apple plans to open several more stores in the years
to come.
Apple also has its online store. At its Web site, a customer can order any Mac or iPod
product, plus a large variety of accessories. In addition to its product offerings, a
customer can watch a demonstration of how products work or check out the latest Mac
ads or news.
Refer to Apple Stores. Of the major types of retail operations, Apple stores are:
a. department stores.
b. specialty stores.
c. Superstores.
d. convenience stores.
e. discount stores.
Answer:
Which of the following statements about the government business market is
CORRECT?
a. Only large vendors with annual sales of more than $20 million are authorized to sell
to the federal government; small vendors are restricted to the state and local
government market.
b. The Office of Management and Budget is the federal agency that contracts for all the
U.S. government's
buying requirements.
c. Selling to states, counties, and cities can be less frustrating for both small and large
vendors than selling to the federal government.
d. The president of the United States must personally authorize all federal government
purchases.
e. Contracts for government purchases are rarely put out for bid.
Answer:
Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and
Health-Sea sea-sausages most likely did not succeed because they did not conform to
the product characteristic of:
a. complexity.
b. trialability.
c. total advantage.
d. observability.
e. compatibility.
Answer:
To qualify a sales lead, a salesperson must identify the person in an organization who
has the authority to buy the product and must close the sale with that individual.
a. True
b. False
Answer:
The owner of Maine Kitchen Art bowls, spoons, and cutting boards knows marketing
can make his company a success. He wants to rely solely on promotion as the technique
for attracting customers. He advertises extensively in cooking magazines and provides
retailers who carry his product with attractive displays. From this information, you
know that Maine Kitchen Art has a orientation.
a. market
b. societal
c. production
d. sales
e. product
Answer:
Retailers who give their sales clerks the authority to handle customer complaints
without having to get approval from a supervisor are using empowerment.
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. In terms of ownership, Diaz's coffee shop would be classified as a(n):
a. franchise.
b. wholesaler.
c. independent retailer.
d. agency.
e. chain store.
Answer:
Which of the following statements about yield management systems (YMS) is true?
a. The first use of YMS was in the U.S. car industry as it looked for ways to compete
with imports.
b. YMS eliminate the problem of simultaneous production and consumption from
services.
c. YMS cannot be used by any other businesses but services.
d. YMS are complex pricing systems used to set equilibrium pricing points.
e. YMS are mathematically complex systems to make use of underutilized capacity and
reduce the cost of perishability.
Answer:
At www.mystarbucksidea.com, customers are encouraged to share their ideas and
thoughts about how Starbucks can better serve its customers. Starbucks customers told
management that they wanted to be recognized for choosing Starbucks coffee. So
Starbucks instituted the My Starbucks Reward program with money-saving benefits to
their Starbuck cardholders. Starbucks is an example of a company with a -oriented
philosophy.
a. transaction
b. sales
c. product
d. society
e. market
Answer:
DeFeet International
DeFeet International started as a cyclist sock company. The founder, Shane Cooper, said
that the existing socks for cyclists were just not of great quality, so he made socks for
his cycling team by knitting them inside out. The socks were of special materials aimed
at giving the cyclist the most comfortable fit. These socks were not the traditional white
socks but were bright, bold, and flashy colored socks with cool graphics. These
high-tech socks were priced around $10 a pair. Their Web site says "DeFeet Is Made for
Driven Soles." Soon, cycling elites like Lance Armstrong and Greg LeMond were
sporting the DeFeet brand. The company branched into running, hiking, and snow gear.
Products include socks, armskins, calfskins, boxer briefs, gloves, and shirts for the
serious athlete. DeFeet has a custom department where socks, armskins, and gloves can
be personalized with any motif, including sponsor types of logos like Michelin, Pabst
Blue Ribbon, or BP. Even kids can enjoy DeFeet's highquality socks. DeFeet's products
can be found in retailers across the world""in more than 20 countries like Israel,
Australia, Belgium, and the United States. More than two dozen online retailers also
carry DeFeet products.
What is the most critical element in successful strategic planning?
Refer to DeFeet International. DeFeet's is what its customers give up to obtain their
apparel.
a. product
b. place
c. price
d. promotion
e. positioning
Answer:
The ____ is the federal government agency charged with enforcing regulations against
selling and distributing adulterated, misbranded, or hazardous food and drug products
of a specific type.
a. Federal Trade Commission
b. Consumer Product Protection Commission
c. U.S. Justice Department
d. Food and Drug Administration
e. American Safety League
Answer:
LeBlanc"sPecanCompany
Betty and Orville LeBlanc recently opened LeBlanc's Pecan Company retail store. In
addition to shelled and unshelled pecans, the Texas store sells pecan pies, tortes,
fruitcakes, fudge, pralines, chocolate pecan bark, homemade pecan ice cream toppings,
and jams and jellies. At this time, there are no other stores of this type in the Houston
area. The LeBlancs are considering developing an advertising campaign for their store,
focusing on its wide assortment of pecan-related products. Orville LeBlanc has drawn
up a list of communication tasks the advertising must accomplish. He used the
DAGMAR approach to draw up this list.
Refer to LeBlanc's Pecan Company. When Orville LeBlanc decided which media he
would use to optimally and costeffectively reach the store's target audience, he was
engaged in developing:
a. a marketing mix.
b. a media plan.
c. a promotional plan.
d. an advertising campaign.
e. reach objectives.
Answer:
Every time Barry orders running shoes from Road Runner Sports, the Web site or the
operator on the phone always tries to sell him something in addition to the shoes he
ordered, such as socks or other apparel. This is an example of:
a. data mining.
b. cross-selling.
c. trading up.
d. database enhancement.
e. a database channel.
Answer:
Yildiz Holding of Turkey purchased Godiva Chocolates from Campbell's Soup
Company. Campbell's sold one of its:
a. strategic business units (SBUs)
b. strategic alliances
c. action programs
d. transactional units
e. synergistic divisions
Answer:
With multisegment targeting, a company could benefit from all of the following
EXCEPT:
a. greater sales volume
b. greater product design and management cost
c. higher profits
d. larger market share
e. economies of scale in manufacturing
Answer:
Which of the following statements about a CRM system is true?
a. A critical component of a CRM system is the use of the appropriate technology to
store and manage customer data.
b. A CRM system operates on the theory that all customers are equally important.
c. Due to privacy laws, a CRM system only disseminates customer information to those
who are actually in day-to-day contact with customers.
d. A company using a CRM system must view its customers as bits of data.
e. All of these statements about a CRM system are true.
Answer:
_______ is measured by comparing income to the relative cost of a set standard of
goods and services in different geographic areas.
a. Gross individual profit
b. Purchasing power
c. Net profit
d. Relative pricing
e. Price escalation
Answer:
ClaxtonFruitcakes
One common Christmas tradition in many households is the Claxton fruitcake. The
fruitcake bakery in Claxton, Georgia, makes about six million pounds of fruitcake
annually and has $12 million in sales. One fruitcake batch weighs 375 pounds. About
70 percent of that weight is fruits and nuts. A single batch is divided into 34 loaf
pans that hold 11 pounds each. Loaves are cooked for 100 minutes at 375 degrees. The
bakery can cook 6,000 pounds at a time. During the baking season (August to
December), the bakery uses a tractor-trailer load of raisins each day. The suggested
retail price of a one-pound Claxton fruitcake is $3.69.
Refer to Claxton Fruitcakes. For a corporation that has been giving its key customers
Claxton fruitcakes since 1950, placing the order for cakes to be delivered this year
would be an example of a _____ because some negotiation about price and quantity
would likely occur each year.
a. new buy
b. contingency buy
c. modified rebuy
d. situational buy
e. straight rebuy
Answer:
BoutiqueHotels
In an industry where guests are tired of cookie-cutter hotels, some consumers are
looking for personalized service, which can be found in boutique hotels. Boutique
hotels cater to their guests' sense of their personal image as being discriminating, more
sophisticated, and more hip. Frequently, these guests don"t want to be where the crowds
are. This is a small but growing market niche. There are no generally recognized rules
for boutique hotels, but they tend to be small and service oriented, with high-style decor
and top-notch restaurants. Employees are called cast members. Amenities include
cordless phones, DVR players hooked up to HD televisions, Aveda brand bath and hair
products, and down comforters and pillows.
Refer to Boutique Hotels. To evaluate the quality provided by boutique hotels,
customers can assess the quality only after staying. This is which quality characteristic?
a. experience
b. relational
c. credence
d. search
e. synergistic
Answer:
Monthly output at Leisure-Time, Inc. changed from 12 to 13 prefabricated gazebos, and
the total costs changed from $9,000 to $10,500. What is the marginal cost for this
company?
a. $1,500
b. $2,000
c. $1,200
d. $10,000
e. $12,000
Answer:
Compensation planning is one of the sales manager's easiest jobs.
a. True
b. False
Answer:
The process by which the adoption of an innovation spreads is referred to as:
a. diffusion
b. circulation
c. transmission
d. dissemination
e. dispersion
Answer:
