Which of the following statements best reflects the guideline for making plans
controllable and flexible?
a. “Our research shows the most efficient way to distribute the product is through rack
jobbers, but at this point we don”t know how price sensitive the market is.”
b. “According to our marketing dashboard, the most effective promotional spending in
the past has come from radio ads. Their prices have almost doubled, but if that’s what
we”re supposed to dothat’s what will we do.”
c. “Connie, you”ll be in charge of ticket sales. If we fill half the seats during the first
day, we might consider adding an additional performance as a Sunday matinee.”
d. “We”ve been offered the chance to do a personal interview on national TV. I know
the host is a wild card, but any publicity is good publicity.”
e. “We”re shooting for a 12 percent market share. We”re at 10 percent to date.
Unfortunately, our budget is shot so we”ll just have to see what happens.”
Answer:
The marketing metrics related to a retailer’s finances include all of the following
EXCEPT:
a. the markdown percentage.
b. the average length of a store visit.
c. the return on sales.
d. the gross margin.
e. the sales per employee.
Answer:
To assist marketers in gathering data on the population, the U.S. Census Bureau has
developed a classification system to describe the varying locations of the population.
The system consists of two types of __________.
a. geometric areas
b. zip code areas
c. statistical areas
d. geodemographic areas
e. residential areas
Answer:
Any container in which a product is offered for sale and on which information is
communicated is referred to as __________.
a. point of purchase display
b. merchandising
c. packaging
d. a label
e. product bundle
Answer:
The key elements of future services include __________, mobility, and personalization.
a. automation
b. transglobalization
c. convenience
d. divergence
e. convergence
Answer:
The car salesman was overheard saying the following words to a prospective customer:
“What type of driving do you do?” “How many people will you usually have riding in
your car?” “Maybe you should look at vans instead of sedans.” From this information,
you should recognize that the car salesman was using a __________ presentation.
a. stimulus-response
b. formula selling
c. need-satisfaction
d. persuasive selling
e. canned sales
Answer:
For marketers, the primary objective of a contest is to
a. demonstrate product use.
b. retaliate against competitors’ actions.
c. encourage present customers to buy more and minimize brand-switching behavior.
d. encourage new product trial.
e. increase consumer purchases and build business inventory.
Answer:
When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it
assumed that its customers would normally snack on them dry like a potato chip.
Unfortunately, consumers did not switch from munching on popcorn and potato chips.
The primary reason for the failure of Fingos was __________.
a. an insignificant point of difference relative to competing snacksconsumers wouldn”t
switch from eating snacks from Frito-Lay and others
b. too little market attractivenessthe growth in the snacks market is declining
c. poor execution of the marketing mixGeneral Mills did not offer free samples at
grocery stores
d. poor product qualitythe chips were not the same size
e. incomplete market and product protocolthe brand name “Fingos” did not get
consumers excited
Answer:
Co-branding involves __________.
a. combining a corporate brand with a new brand
b. pairing two brand names of two manufacturers on a single product
c. using the same brand names for the same product in multiple countries
d. using the same name for the original product and for all subsequent product line
extensions
e. using a current brand name to enter a different product class
Answer:
Culture is a component of what type of environmental force that must be scanned to
assess its impact on the organization’s marketing environment?
a. regulatory
b. technological
c. competitive
d. economic
e. social
Answer:
Although many people love the self-service technology that allows Redbox to provide
DVDs 24 hours a day, many people missed the personal interaction and
recommendations from their local clerks from Blockbuster or an independent video
store. Redbox confronted this issue by creating a “Redblog” where customers could
share their opinions, feelings, and experiences. This is an example of confronting the
a. inventory aspects of services.
b. inseparability aspects of services.
c. inconsistency aspects of services.
d. intangibility aspects of services.
e. impressionability aspects of services.
Answer:
What is the primary disadvantage of employing a product specialization strategy?
a. The organization may be spread too thin.
b. The organization achieves neither marketing nor manufacturing synergies.
c. R&D-manufacturing has the difficulty of producing multiple new lines.
d. There are too many product substitutes over which a firm would not have control.
e. Gaining market distribution will be costly.
Answer:
Your local instant photocopying service charges 10 cents a copy up to 25 copies, 9 cents
a copy for 26 to 99 copies, and 8 cents a copy for 100 copies or more. What kind of
adjustment to these list or quoted prices is the photocopying service using?
a. experience curve pricing
b. loss-leader pricing
c. a quantity discount
d. a promotional discount
e. everyday low pricing
Answer:
Subcultures refer to
a. subgroups within the larger national culture, whose values and beliefs are
diametrically opposed to foreign cultures.
b. groups within organizations whose values and beliefs influence the corporate culture.
c. subgroups within the larger, or national, culture with unique values, ideas, and
attitudes.
d. stakeholder groups outside an organization whose values and beliefs are contrary to
the corporate culture.
e. the designation given to people between the ages of 13 and 24 whose values and
beliefs are not yet fully formed but are still influenced both by their families and
society.
Answer:
The marketing challenge for the brand manager using a Facebook Page is to post and
create content that will generate the best response. This goal can be accomplished by
a. updating content regularly to keep it fresh.
b. using familiar imagery and messaging, but adding a twist.
c. engaging users and letting them guide site content.
d. leveraging existing media assets for the brand.
e. all of the above.
Answer:
The Price Premium Marketing Dashboard above shows the dollar and unit market
shares for selected energy drinks. What is the price premium for Monster in 2010?
a. -12.5%
b. -7.5%
c. -5.3%
d. 0%
e. 15.2%
Answer:
The BCG has given specific names and descriptions to the four resulting quadrants in
its growth-share matrix based on the amount of cash they generate for or require from
the organization. “Stars” are SBUs that are classified as having
a. high market growth rates and high relative market shares.
b. low market growth rates but high relative market shares.
c. low market growth rates and low relative market shares.
d. high market growth rates but low relative market shares.
e. medium market growth rates and medium relative market shares.
Answer:
Mike Morgan, a sales representative for a major food service distributor of General Mill
Warm Delights, wanted to encourage repeat purchases by his grocery customers. In
order to accomplish this objective, Morgan offered the following discounts to his
customers: a 10 percent discount for buying 1-49 cases of Warm Delights within a
calendar month; the discount increases to 12 percent if 50-99 cases of Warm Delights
are purchased within the same calendar month; and the discount increases to 15 percent
if 100 or more cases of Warm Delights are purchased within the same calendar month.
What type of discount was Morgan offering his grocery customers?
a. a seasonal discount
b. a quantity discount
c. a cash discount
d. a trade discount
e. a case allowance discount
Answer:
The name Netflix was chosen specifically because
a. it sounded new and upbeat.
b. it ended in the letter “x,” which causes a word to have an “edge” to it.
c. the company knew that it would eventually deliver movies over the Internet.
d. hidden within the name is the word “next,” implying a forward looking company.
e. it rhymed with “best-picks” and alluded to both quality and the visual aspects of its
service.
Answer:
Which of the following is an inherent strength of advertising?
a. Advertising provides immediate feedback.
b. Advertising can deliver complex information.
c. Advertising can create messages quickly.
d. Advertising is an efficient means for reaching large numbers of people.
e. Advertising is often the most credible source of information for consumers.
Answer:
The manufacturer of a new kind of fat-free ice cream that has the consistency and taste
of regular ice cream is thinking of using a penetration pricing strategy for its new
product. Which of the following conditions would argue AGAINST using a penetration
pricing strategy for the tasty fat-free ice cream?
a. The ice cream market is highly conservative.
b. Economies of scale in production would be substantial.
c. Retailers are not willing to carry new brands of ice cream in the already overcrowded
category.
d. Once the initial price is set, it is nearly impossible to lower the price without
alienating early buyers.
e. The ice cream market exhibits inelastic demand over a fairly broad range of prices.
Answer:
Figure 1.
Quadrant “C” in Figure 1. above represents the marketing strategy of __________.
a. product development
b. market penetration
c. market development
d. product penetration
e. diversification
Answer:
An expanded marketing mix for services that includes the four Ps (product, price,
promotion, and place or distribution) as well as people, physical environment, and
process, is referred to as the __________.
a. seven Ps of services
b. service matrix
c. service continuum
d. service encounters
e. the service mix
Answer:
Porter’s four generic business strategies involve combinations of (1) competitive scope
or the breadth of the target markets and (2) __________.
a. organizational structure
b. degree of geographical distribution
c. investment in research and development
d. a stress on costs versus product differentiation
e. relative number of products in a product line
Answer:
The business-oriented website that lets users post their profiles and connect to a
network for business people is
a. LinkedIn.
b. YouTube.
c. Twitter.
d. Facebook.
e. Friendster.
Answer:
In a(n) __________, an individual or firm contracts with a parent company to set up a
business or retail outlet.
a. administered system
b. vertically integrated chain
c. retail-sponsored cooperative
d. franchise system
e. corporate system
Answer:
Figure 1.b
All of the following are sources of primary data EXCEPT:
a. American Marketing Association’s Marketing News.
b. mined data.
c. experiments.
d. social media.
e. panels.
Answer:
Washburn recently purchased Parker Guitar, another guitar manufacturer that designed
products for professionals and collectors, and will combine the two production facilities
into a new location. Washburn expects the acquisition to reduce its rent and tax
expenses by 40 percent, and the new skilled employees will reduce the hours of work
needed for each unit by 15 percent. This would cause the slope of the total cost curve to
_________ and the break-even quantity to _________.
a. decrease; stay the same
b. decrease; increase
c. increase; increase
d. stay the same; increase
e. decrease; decrease
Answer:
The calculation for same-store sales growth is
a. total sales selling area in square feet.
b. (store sales in year 3 store sales in year 1).
c. [store sales in year 1 (store sales in year 2 ” store sales in year 1)].
d. [(store sales in year 2 ” store sales in year 1) store sales in year 1].
e. store 1 square feet store 2 square feet.
Answer:
Merrill Lynch and Thompson Financial are two years into a three-year, $1 billion
project that will put workstations on the desks of 25,000 of Merrill Lynch’s brokers.
These machines will put the world of investing information at brokers’ fingertips.
Thompson, the supplier, is obligated to deliver not only technology and services on time
and on budget, but also constantly improve customer-satisfaction levels among Merrill’s
brokers and customers. This is an example of
a. a reciprocity agreement.
b. exclusive dealing.
c. supplier alliance.
d. a buyer-seller relationship.
e. a tying arrangement.
Answer:
Sarah has a toothache. She believes it may be due to her not having regular dental
checkups in the past. She now wants to find a dentist, but does not have one that she has
used in the past. Because dentistry has __________ properties, Sarah plans to ask her
friends for a recommendation for a dentist they like to be sure that she finds a good one.
a. search
b. form
c. experience
d. credence
e. performance
Answer:
A general rule of thumb among marketing researchers is to use __________ first and
then collect _________.
a. external secondary data; internal secondary data
b. internal primary data; external primary data
c. primary data; secondary data
d. secondary data; primary data
e. observational data; questionnaire data
Answer:
A specialized observational approach in which trained observers seek to discover subtle
behavioral and emotional reactions as consumers encounter products in their “natural
use environment,” is referred to as __________research.
a. ethnographic
b. cultural
c. genealogical
d. sociological
e. physiological
Answer:
Mars, Inc. uses __________ technology to decorate M&Ms with personal photos and
messages.
a. hologram
b. cookie
c. choiceboard
d. filtering
e. print screen
Answer:
Because there are few sellers, price competition among firms is not desirable in which
form of competition?
a. pure competition
b. cross-market competition
c. a monopoly
d. monopolistic competition
e. an oligopoly
Answer: