Several Arab nations refuse to allow CocaCola products to be sold within their borders
because of the company’s distributorships in Israel. This is an example of a(n):
a. transfer limit.
b. quota.
c. tariff.
d. exchange control.
e. boycott.
Answer:
Almost any product in India, from tap water to milk, has traces of toxins due to the
overuse and misuse of insecticides by Indian farmers, but the government expects
multinational corporations (MNCs) operating in India to produce food that is toxin free.
In this way, _____factors influence the operating environment for foreign both firms.
a. social and technological
b. technological and legal
c. economic and legal
d. economic and social
e. technological and demographic
Answer:
The Southern Company is the largest provider of utilities in the southeastern United
States. It has also been accused of being the biggest source of industrial air pollution in
the area. Southern is trying to change consumers’ perceptions of the company by
sponsoring a series of television programs on how to preserve our environment. The
Southern Company is hoping the programming will lead to:
a. repositioning
b. reengineering
c. demarketing
d. undifferentiated targeting
e. one-to-one marketing
Answer:
There are many furniture manufacturers. Tall Paul’s is the only one that makes furniture
to meet the needs of people who are over 6″6″ tall. These people find furniture designed
for averagesized people to be cramped and uncomfortable. Tall Paul’s uses _____
segmentation.
a. geodemographic
b. usage-rate
c. demographic
d. psychographic
e. benefit
Answer:
All of the following are advantages of using a concentrated targeting strategy EXCEPT:
a. concentration of resources
b. can better meet the needs of a narrowly defined segment
c. allows some small firms to better compete with larger firms
d. strong positioning
e. cannibalization
Answer:
During a recent summer, Volvo Cars of North America drove traffic to its dealerships
via a sweepstakes tied to Walt Disney’s summer blockbuster
Pirates of the Caribbean: DeadMan”s Chest.This was an example of:
a. a sales promotion.
b. publicity.
c. advertising.
d. implicit communications.
e. a personal sales presentation.
Answer:
In the adopter categories, the final 16 percent to adopt are similar to innovators in that
they do not rely on the norms of the group but are independent because they are bound
to tradition. They tend to have the lowest socioeconomic status, are suspicious of new
products, and are alienated from a rapidly advancing society. They are called:
a. generics.
b. late majority.
c. decliners.
d. laggards.
e. luddites.
Answer:
The marketing manager of Icruise.com (a travel Web site targeted to consumers who
want a luxury vacation) finds that the firm can gain market share and become the
industry leader if it slashes prices by 50 percent during the month of December.
However, the VP of finance is committed to reporting a 25 percent return on investment
at all times. This conflict illustrates:
a. a need to eliminate low-profit products.
b. a lack of corporate concentration on the marketing concept.
c. how pricing operates in a mature marketplace.
d. the need for trade-offs in pricing objectives.
e. how target markets can be ignored.
Answer:
Which of the following occurs when people give up something in order to receive
something they would rather have?
a. Exchange
b. Synergy
c. Transformation
d. Leveraging
e. Reciprocity
Answer:
Costs that are shared in the manufacturing and marketing of several products in a
product line are called:
a. joint costs.
b. integrated costs.
c. fixed costs.
d. variable costs.
e. combined costs.
Answer:
NewCarPurchase
Zena has been promoted to VP of the management consulting firm where she works..
Her new status has led her to consider the need for a new car. Her trusty little
Volkswagen Beetle has over 100,000 miles on it and no longer seems appropriate.
Susanne, another VP, suggests that Zena consider a car produced in the United States
because the firm has a policy of supporting U.S. businesses. Zena began her quest for a
new car by visiting several car dealers and obtaining pamphlets on the models she is
considering. She also studied ConsumerReportsmagazine, CarandDriverratings, and
other consumer rating publications to see what the experts think. After evaluating all
options, Zena has decided to purchase a new Chrysler. She believes that the car is a
good fit with her new image and position in her company. Since her purchase, she has
seen more advertisements touting the car’s features than she ever noticed before. She
also has noticed many models of her car on the road. Zena thinks the fact that so many
others are driving the same model car as hers is proof that she made a good decision.
Refer to New Car Purchase. If you evaluate Zena’s choice of a Chrysler based on
Maslow’s hierarchy of needs,
the car was bought to meet needs.
a. self-actualization
b. security
c. esteem
d. safety
e. physiological
Answer:
___ products are seen by consumers to differ in quality, style, suitability, and lifestyle
compatibility. Comparisons between these products are often quite difficult because
they may have unique features and different levels of quality and price.
a. Product equivalents
b. Comparative convenience products
c. Homogeneous shopping products
d. Product counterparts
e. Heterogeneous shopping products
Answer:
When compared to other forms of promotion, personal selling:
a. is more important as the number of potential customers increases.
b. is more effective in selling frequently purchased products.
c. can use a message customized to the immediate needs of the customers.
d. is best for selling simple, low-involvement products.
e. is less expensive.
Answer:
FloridaHospitals
A group of hospital administrators in Florida were discussing the amount of resources
used to care for patients who were illegal immigrants and had no medical insurance.
One man discussed how his hospital had spent over $2 million on one illegal immigrant
who had no family or friends and who was not getting better. Another administrator
stated that his hospital was losing $20 million annually in order to provide care for the
influx of illegal immigrants into the state. After a great deal of discussion, it was
determined that there was probably nothing any one could do about the situation, and
that each of them had definite ideas about how to deal with the problems.
Refer to Florida Hospitals. In order to make an ethical decision on how to handle
uninsured illegal immigrants, the
Florida hospital administrators must consider all of the following EXCEPT:
a. social consensus
b. number of people affected by the decision
c. probability of harmful outcome to the hospital and to the individuals
d. magnitude of morality
e. length of time between the decision and the onset of consequences
Answer:
Which category of reference groups represents groups in which a consumer does not
have membership?
a. Direct
b. Indirect
c. Primary
d. Secondary
e. Incomplete
Answer:
All of the following are steps in the market segmenting process EXCEPT:
a. determining the objectives of the segmentation strategy
b. profiling and analyzing segments
c. designing, implementing, and maintaining appropriate marketing mixes
d. selecting a market or product category for study
e. choosing a basis or bases for segmenting the market
Answer:
An exclusion of all products from certain countries or companies by a government or
group is called a(n):
a. expropriation.
b. quota.
c. tariff.
d. exchange control.
e. boycott.
Answer:
DeFeet International creates its apparel in North Carolina and sells it domestically and
abroad. The company is in which stage of global business?
a. Stage one
b. Stage two
c. Stage three
d. Stage four
e. Stage five
Answer:
Molson beer was produced in Canada. Coors was manufactured in the United States. A
merger of the two breweries gave each brand access to a significantly larger market. To
effectively reach both markets, the merged company needed to coordinate its
promotional mix to produce a consistent, unified, and customer-focused message. In
other words, the brewery needed to use:
a. coordinational promotion.
b. integrated marketing communications.
c. transformational marketing.
d. creative selling.
e. transactional communications.
Answer:
Statements on Kashi cereals and breakfast bars stating that they have no artificial
colors, flavors, or preservatives would most likely be an example of labeling.
a. primary
b. required
c. informational
d. functional
e. environmental
Answer:
When Nesco brand food hydrators sold for $59.99, Nesco sold 90 dehydrators. When
the company dropped the price of its dehydrators to $44.95, it sold 145 dehydrators.
Demand for the food dehydrators appears to be:
a. elastic.
b. inelastic.
c. unitary.
d. symmetrical.
e. asymmetrical.
Answer:
StarbucksLoyaltyRewards
The first Starbucks opened in 1970 in Seattle, Washington. The demand for its coffee
grew, and Starbucks added more than 6,000 stores located in over 30 countries. In its
more than 30-year history, Starbucks has never given out coupons for its coffee.
Starbucks needed only to make its coffee and customers came. Recently, consumer
quality perception of the Starbucks brand has started to fall. Starbucks started a
consumer response blog to learn more about what consumers expect from Starbucks.
One of the most common requests was for a customer rewards program. In response,
Starbucks started My Starbucks Rewards, which offers free refills on brewed coffee,
free beverage with whole bean purchase, beverage customization, and free Wi-Fi.
Starbucks also put coupons in a national newspaper for those consumers who love
coupons and created a new brew of coffee for those who prefer a milder coffee taste.
Starbucks is hoping that these improvements will restore customers’ loyalty and
confidence.
Refer to Starbucks. Starbucks customers wanted more value from their coffee.
Starbucks management responded to customers through the Starbucks card rewards
program. Which element of value was Starbucks management working to increase?
a. Offering products that perform
b. Earning trust
c. Avoiding unrealistic pricing
d. Giving the buyer facts
e. Co-creation
Answer:
Transactional channel functions include all of the following activities EXCEPT:
a. explaining product benefits
b. making buyers aware of existing products
c. explaining product features, advantages, and benefits
d. contacting and communicating with prospective buyers
e. physically distributing and sorting products
Answer:
DeLouis owns an agency that specializes in bringing international buyers in contact
with U.S. companies to facilitate global trade. What type of intermediary is DeLouis?
a. Buyer for export
b. Export broker
c. License agent
d. Import agent
e. Export agent
Answer:
SpecialtyCakes
Imagine that you”re planning an aftersymphony fundraising party, and you need a
lifesize grand piano cake. Or, you are a developer proposing a new shopping center to a
group of investors, and you want to serve a cake shaped like an architectural rendition
of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes.
She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect
to pay anywhere from $75 to $10,000 for one of Cecilia’s artistic creations, depending
on complexity of design and size. She uses only the best ingredients, and no two cakes
are ever quite alike.
Refer to Specialty Cakes. Although many factors determine the prices charged by
Cecilia Villaveces Cakes, the two primary determinants are:
a. costs of manufacturing and distribution costs.
b. stage of the product life cycle and costs to the consumers.
c. the demand for the good and the cost to the seller.
d. demand by the consumer and perceived quality.
e. distribution and promotion strategies used by the cake maker.
Answer:
_____ is equal to net profit after taxes divided by total assets.
a. Return on investment
b. Economic order quantity
c. Target-on-sales
d. Retained earnings
e. Efficiency maximization
Answer:
What is the chief advantage of primary data?
a. Low cost compared to secondary data
b. Answers specific research questions that secondary data cannot answer
c. Availability to any interested party for use
d. Accessibility through computerized databases
e. Avoiding interviewer biases
Answer:
If a customer expects to wait three hours for an auto repair but the repair is finished just
one hour later, the customer’s evaluation of service quality will be high. However, a two
day wait would result in a lower evaluation. The two day wait would illustrate a gap
between:
a. service quality specifications and the service that is actually provided.
b. the service customers receive and the service they want.
c. what the company provides and what the customer is told it provides.
d. what customers want and what management thinks customers want.
e. what management thinks customers want and the quality specifications management
develops to provide it.
Answer:
A health club has a new fitness program for expectant mothers. After flyers were placed
at the offices of area obstetricians, classes filled up within two days. Which
segmentation success criterion was most influential in the success of this promotion?
a. Substantiality
b. Identifiability
c. Measurability
d. Causality
e. Responsiveness
Answer:
Hasbro, Inc. hired actress Jamie Lee Curtis as its spokesperson to promote the
company’s board games. As part of the campaign, Curtis appeared in television spots
dressed as characters from various Hasbro games such as Battleship, Monopoly, and
Clue to promote the games as great Christmas gifts to parents who played the games as
children. This promotion was intended to:
a. amuse consumers.
b. influence consumers to switch to Hasbro games.
c. act as a reminder advertisement.
d. persuade nonplayers of games to try them.
e. act as a persuasive device for the product category.
Answer:
Relationship selling is more typical with selling situations for consumer goods.
a. True
b. False
Answer:
The total market value of all final goods and services produced in a country for a given
time period is called:
a. the exchange rate
b. gross domestic product (GDP)
c. the trade balance
d. gross national product (GNP)
e. gross operating surplus (GOS)
Answer:
GotMilk?
Just because consumers live in a big city doesn”t mean they can”t have fresh milk right
from the farm. Many dairy farms, such as Oberweis Dairy and Smith Brothers Farms,
offer home delivery of fresh milk, just like in the old days. While some of these services
are established and have been around since the 1920s, New York City”based Manhattan
Milk started up in 2008. For $20 or more, depending on what is ordered, consumers
anywhere in Manhattan can enjoy organic milk, butter, yogurt, and cheese from
Pennsylvania Amish farms and eggs from Vermont. Unlike most store-bought milk,
theirs is not homogenized and is free of hormones typically given to cows to produce
more milk.
Refer to Got Milk? Manhattan Milk is an example of a:
a. retail operation
b. service
c. wholesale intermediary
d. facilitator
e. manufacturer
Answer: