Figure 1.
In Figure 1. above, “A” identifies a
a. cost point.
b. price point.
c. value point.
d. sensitivity point.
e. break-even point.
Answer:
In terms of the diffusion of innovation, early adopters account for __________ of
product adopters.
a. 2.5%
b. 13.5%
c. 16%
d. 34%
e. 50%
Answer:
Marketers collect and use environmental information to better understand consumers.
The ESRI Tapestry Segmentation tool is used to
a. obtain an economic profile of “hometowns” in comparison to national profiles.
b. obtain a profile of customers who identify themselves as members of multiracial or
multiethnic groups.
c. identify behavioral segments of the population interested in the more domestic arts
such as sewing, crocheting, knitting, and quilting.
d. help segment markets in the areas of home design based on decorating styles such as
traditional, Victorian, contemporary, etc.
e. identify similarities rather than differences among a diverse group of consumers by
race, ethnicity, gender, and age.
Answer:
Innovators at 3M developed Scotch-Brite Never Rust Wool Soap Pads from recycled
plastic bottles. Even though these soap pads are more expensive than competitive
brands (Brillo and SOS), customers are willing to pay the premium price. Customers
appreciate the value of a superior product (they don”t rust or scratch) and appreciate the
fact that their purchase is environmentally responsible. This demonstrates that
a. an organization can be environmentally conscious while still satisfying its customers
and remaining competitive in the market.
b. an organization can use a customer’s sense of social responsibility to its own
advantage even though the effects are minimal.
c. if a company uses recycled materials, it can always charge more than what a product
is actually worth.
d. it is more important to act in a socially responsible manner than to consider the
profits and goals of the organization.
e. the first brand that creates a new product gets to charge the highest price and make
the greatest profits.
Answer:
All of the following are true about a skimming pricing strategy when used during the
introduction stage of the product life cycle EXCEPT:
a. It capitalizes on the price insensitivity of early buyers.
b. Its profit margins may be high.
c. It encourages “me too” entrants into the market.
d. It recovers the R&D costs of the new offering.
e. It helps build unit volume.
Answer:
Martin Lindstrom merged __________ and marketing and presented his controversial
findings in his breakthrough book Buyology.
a. genealogy
b. neuroscience
c. astrology
d. biochemistry
e. numerology
Answer:
When Louisiana State University buys new laptops for its faculty, it is operating as a(n)
a. industrial market.
b. business market.
c. government unit.
d. consumer market.
e. service provider.
Answer:
Wasted coverage can be reduced by which of method of promotion?
a. sales promotion
b. public relations
c. advertising
d. public service announcements
e. personal selling
Answer:
What type of exporting has the least amount of commitment and risk but will probably
return the least profit?
a. direct
b. indirect
c. licensing
d. joint venture
e. direct investment
Answer:
Four basic business and management practices are important, according to researchers
who studied more than 200 management tools and techniques. These are: (1)
__________, (2) execution, (3) culture, and (4) structure.
a. ethics
b. charismatic leadership
c. quality
d. strategy
e. sustainability
Answer:
The relationship between the interactive communication capabilities of the Internet and
customization is that
a. a highly interactive and individualized information and exchange environment is
created for shoppers and buyers.
b. it helps customers reduce their search costs and more conveniently find the offerings
with the desired features.
c. it protects online consumer privacy about the customized products and services they
desire.
d. it records users’ visits to websites, which enhances online consumers’ convenience.
e. it reduces costs and wasted coverage both for the buyer and seller.
Answer:
A 3M researcher worked with university students to develop the Post-it Flag
Highlighter. His team evaluated the technical feasibility of the proposed design and
determined whether the idea met the firm’s new-product objectives. At which stage of
the new-product process was this product?
a. idea generation
b. screening and evaluation
c. business analysis
d. new-product strategy development
e. concept testing
Answer:
George and Alice Renfro decided to start a family business in 1990. Its product:
chowchow, a southern regional food. To determine how they would price the
chowchow, the Renfros had to: (1) examine the demand for the product (e.g., would
people rather eat homemade or store-bought?); (2) the costs of the jars for and bottling
of the chowchow; and (3) and how much it would cost to distribute the product to area
grocery stores. For the Renfros, Step 1 of their price-setting process consists of
a. identifying pricing constraints.
b. estimating break-even points and revenue points.
c. setting the list price.
d. selecting an approximate price level.
e. determining cost, volume, and profit relationships.
Answer:
All of the following were changes in the Netflix business model since its founding in
1997 EXCEPT:
a. Netflix announced it would split the firm into two divisions, one that focused on
delivering DVDs by mail (Quikster) and the other that streamed them over the Internet
(Netflix).
b. Netflix delivered movies by mail in VHS cassette format.
c. Netflix eventually delivered movies over the Internet.
d. Netflix established a partnership with DirecTV, a satellite television provider, to
deliver movies over its network.
e. Netflix cancelled its plan to separate its business into two divisions as a result of
customer backlash and negative media criticism.
Answer:
Extending credit to customers would be an example of a __________ function.
a. transactional
b. logistical
c. facilitating
d. buying
e. risk taking
Answer:
In the early 1900s, Henry Ford revolutionized the automobile industry by developing
production lines and mass-producing the Ford Model T automobile. By heavily
reducing production costs, Henry Ford made the Model T affordable for the average
American family. What generic business strategy did Henry Ford use to gain a
competitive advantage in the automobile market?
a. a cost leadership strategy
b. a differentiation strategy
c. a cost focus strategy
d. a differentiation focus strategy
e. a limited production strategy
Answer:
Which of the following statements describes a disadvantage associated with personal
selling?
a. Presentations often provide little opportunity for consumer feedback.
b. Personal selling permits too much wasted coverage.
c. There may be inconsistency in the presentation of the message from one salesperson
to another.
d. A salesperson cannot control to whom a presentation is made.
e. Personal selling is subject to extensive federal, state, and company regulation.
Answer:
Figure 1.
Figure 1. above depicts the four most common marketing channels for consumer
products and services. “Z” represents
a. consumers.
b. industrial users.
c. wholesalers.
d. agents or brokers.
e. retailers.
Answer:
Economic espionage includes such activities as _________.
a. two firms hiring the same musician to write their company jingle
b. hiring people who ever worked in an executive capacity at a competitor’s firm,
especially if they didn’t have a noncompete clause
c. offering to accept all competitors’ coupons, making their effectiveness as a
promotional tool negligible
d. searching through a competitor’s trash
e. marrying someone who works for a competitor in an executive position
Answer:
Women influence what percentage of new car-buying decisions?
a. 15 percent
b. 20 percent
c. 40 percent
d. 60 percent
e. 80 percent
Answer:
A firm that views the world as consisting of unique parts and markets to each part
differently is referred to as a(n)
a. meganational firm.
b. foreign expansion firm.
c. international firm.
d. multinational firm.
e. transnational firm.
Answer:
The form of competition in which many sellers compete with their products on a
substitutable basis within a price range is called
a. pure competition.
b. cross-market competition.
c. an oligopoly.
d. monopolistic competition.
e. a monopoly.
Answer:
From an interactive marketing perspective, __________ is defined as the sum total of
the interactions a customer has with a company’s website, from the initial look at a
home page through the entire purchase decision process.
a. digitalization
b. online marketing
c. website design
d. interactive marketing
e. customer experience
Answer:
One way to improve implementation is to communicate goals and the means of
achieving them. At Papa John’s, everyone is made aware of the firm’s core values. For
example, core value #4 is “PAPA,” which stands for __________.
a. “Practice Always for Perfect Achievement”
b. “People Are Priority No.1, Always”
c. “Practice and Practice Again”
d. “Planning Always Produces Achievement”
e. “Prepare and Perform Accurately”
Answer:
All of the following statements are true about magazines EXCEPT:
a. the magazine with the highest circulation is AARP The Magazine.
b. consumer interests can be difficult to translate into a magazine theme, resulting in
many magazine failures each year.
c. national publications publish regional and even metro editions to reduce wasted
coverage.
d. most magazines are dropping their print formats to offer only online versions that can
be viewed on iPads and other tablet devices and smartphones.
e. Time magazine publishes both geographic and demographic editions in the U.S.
Answer:
The __________ method has two advantages over other traditional methods of data
collection: the cost is relatively minimal and the turnaround time for data collection to
report presentation is much quicker.
a. personal interview
b. telephone interview
c. online survey
d. mail survey
e. fax survey
Answer:
The marketing manager looks for two kinds of deviations, each triggering a different
kind of action: (1) actual results fall short of goals and (2) __________.
a. deviations that result from major shifts in customer needs
b. actual results exceed goals
c. there are no deviations but there should be
d. deviations that result from executive mandates
e. deviations that are blamed on insufficient marketing support (personnel or funding)
Answer:
Odd-even pricing is most closely related to
a. retailers’ perceptions of price.
b. wholesalers’ markups.
c. a manufacturer’s costs.
d. competitors’ perceptions of price.
e. customers’ perceptions of price.
Answer:
Which of the following is a disadvantage associated with licensing?
a. The licensor has lower wages and prices.
b. The licensor may create its own competition.
c. The licensor has increased profit potential.
d. The licensor has complete control of the product.
e. The firm’s reputation is improved if it selects a poor choice as a licensee.
Answer:
The Susan G. Komen for the Cure has used __________, in addition to its familiar
walks and races, to raise more than $1. billion for breast cancer research.
a. social marketing
b. private donations
c. sales promotion campaigns
d. green marketing programs
e. sharing of resources
Answer:
A fast-food franchisee is required by its franchisor to buy unmarked plastic eating
utensils from the franchisor if the franchisee wants to use the cups, napkins, and other
paper products with the franchise logo. The franchisee can buy the identical utensils
from a local supplier for half the price. This requirement would be an example of a(n)
a. dual distribution network.
b. refusal to deal.
c. exclusive dealing.
d. tying arrangement.
e. resale restriction.
Answer: