Ampro-Mag is a small company that makes materials for safely controlling hazardous
spills of all kinds. It sells these items as a neutralizing kit priced at $100. The costs of
the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The
company has monthly expenses of $1,000 for rent and insurance, $200 for heat and
electricity, $500 for advertising in trade journals, and $3,500 for the monthly salary of
its owner. What is Ampro-Mag’s monthly break-even point in terms of number of
neutralizing kits sold?
A. 40 kits
B. 52 kits
C. 104 kits
D. 116 kits
E. 520 kits
Answer:
21st Century Fox is the new name for its broadcast/cable TV networks and TV/movie
studios. Since most of the shows produced at its TV production unit and many of the
movies made at its studio are only televised on its cable TV networks, 21st Century Fox
is an example of a(n)
A. corporate vertical marketing system.
B. integrated marketing system.
C. contractual vertical marketing system.
D. corporate horizontal marketing system.
E. contractual horizontal marketing system.
Answer:
The field of marketing that studies the brain and its response to marketing stimuli is
referred to as
A. extrapolation.
B. hypothesizing.
C. neuromarketing.
D. deduction.
E. conjecture.
Answer:
Market segments refer to
A. the relatively heterogeneous groups of prospective buyers that result from the market
segmentation process.
B. all buyers of a product or service who have previously purchased a particular firm’s
products or services and who intend to repeat that purchase sometime in the future.
C. the smallest number of buyers that have similar needs but do not react similarly in a
buying situation.
D. the relatively homogenous groups of prospective buyers that have common needs
and will respond similarly to a marketing action.
E. all potential buyers of a product or service who intend to purchase a firm’s products
or services but who have not yet done so.
Answer:
Prior to its production, LEGO marketing managers developed a(n) __________ for the
innovative MINDSTORMS EV3 robot capable of walking or skating, perhaps by
adding an infrared sensor.
A. virtual concept
B. product substitute
C. product hypothesis
D. new-feature matrices
E. new-product concept
Answer:
On eBay.com, the Internet auction website, sellers design the web page on which they
sell their merchandise. One individual who was selling a Coca-Cola tray from the 1920s
used a background that resembled fluffy clouds in a blue sky. The page contained six
pictures of the tray from different angles and an animated depiction of an American
flag. Many potential buyers abandoned the web page before all the pictures
downloaded. The seller must have been unaware of the __________.
A. eight-second rule
B. 80/20 principle
C. stickiness principle
D. hierarchy of needs
E. efficiency rule
Answer:
One disadvantage of using the yellow pages as an advertising medium is
A. there is no similar competition.
B. they are difficult to keep up to date.
C. the ads are perishable.
D. few households with telephones have them.
E. they have high delivery costs.
Answer:
Two commonly used techniques to aid mangers with important decisions for setting a
direction and allocating resources include __________ and __________ analysis
strategies.
A. micromarketing; macromarketing
B. business portfolio; diversification
C. investment; divestment
D. dashboards; metrics
E. subjective; objective
Answer:
Figure 9-2
Considering the classification of consumer products, which of the following products
will have the most limited distribution?
A. Secret antiperspirant
B. Fuji disposable camera
C. BP gasoline
D. Marchesa wedding gown
E. Sony HDTV
Answer:
Rob only has 30 minutes off for lunch, so he typically goes somewhere within a block
or two of his building, and is careful about what he orders. This is an example of which
situational influence in the purchase decision process?
A. purchase task
B. social surroundings
C. physical surroundings
D. temporal effects
E. antecedent states
Answer:
When a manufacturer directs the promotional mix to channel members to gain their
cooperation in ordering and stocking the product, it is using a(n) __________ channel
strategy.
A. push
B. pull
C. inertia
D. exclusivity
E. logistics
Answer:
A drugstore that sells pharmaceuticals, beauty aids, camera equipment, nonperishable
groceries, and small hardware items is an example of a retailer using
A. multiple distribution channels.
B. full-service.
C. scrambled merchandising.
D. intertype competition.
E. dual channel marketing.
Answer:
The local radio station broadcast a story about a dry-cleaner that requested coat
donations. The company offered to clean the coats and deliver them to people in need.
The various addresses of the dry-cleaner chain were also broadcast so that donations
could be dropped off. Since this featured business did not pay for this exposure, it
benefited from __________.
A. advertising
B. direct marketing
C. personal selling
D. publicity
E. sales promotion
Answer:
Figure 13-5
According to Figure 13-5 above, Stage A represents which stage of the retail life cycle?
A. introduction
B. early growth
C. accelerated development
D. maturity
E. start-up
Answer:
Which of the following products would have a low-learning product life cycle curve?
A. electric cars
B. Fusion razor
C. interactive television
D. software for learning a foreign language
E. convection ovens
Answer:
Nicole gives her young daughter Kelli an allowance of $5 a week. Sometimes, Nicole
takes Kelli shopping. But if Kelli wants something that costs more than she has saved,
Nicole reminds her she needs to keep saving. When Kelli is finally able to purchase a
special, more expensive item, she is allowed to pay for it herself, including bringing the
product to the sales clerk to complete the purchase. In this way, Nicole encourages the
development of Kelli’s
A. consumer assimilation.
B. consumer acculturation.
C. purchasing socialization.
D. consumer socialization.
E. purchasing enculturation.
Answer:
The axes on a perceptual map are
A. sales and profitability.
B. two product attributes, ranging from high to low on that attribute.
C. market share and market growth rate.
D. product variety and profitability.
E. customer perceptions of the firm’s product versus the brand of the firm’s principal
competitor.
Answer:
Which of the following is one of the largest retailers in the United States?
A. Hallmark
B. Procter and Gamble
C. Merck
D. Home Depot
E. Johnson and Johnson
Answer:
Which of the following statements about sales tests is most accurate?
A. With sales tests, product information, product samples, or premiums are offered to
an ad’s readers or viewers, and ads generating the cost inquiries are considered the most
effective.
B. With sales tests, a question such as, “What ads do you remember seeing yesterday?”
is asked of respondents without any other prompting.
C. Sales tests involve studies such as controlled experiments and consumer purchase
tests to measure actual purchases.
D. In a sales test, respondents are asked questions to measure changes in their attitudes
after an advertising campaign.
E. In a sales test, respondents are first shown an ad and then asked whether their
previous exposure to it was through reading, viewing, or listening.
Answer:
U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6
billion more for rice than the actual cost of the products because
A. both countries have suffered major financial crises due a severe trade imbalance.
B. both countries have imposed tariffs on imported goods to protect their domestic
markets.
C. both countries have imposed limits on the quantity of these goods that can leave their
respective domestic markets.
D. both products are considered essentials and as a result are more heavily taxed.
E. these products were purchased at a lower price from nations that currently are under
governmental sanctions.
Answer:
A __________ is a brand strategy designed to counteract or confront competitors’
brands.
A. co-brand
B. private brand
C. fighting brand
D. brand extension
E. subbrand
Answer:
Tim Marlow, the owner of The Clock Works, wanted to know how many clocks he must
sell in order to cover his fixed cost at a given price. Tim knew that he had total fixed
costs of $20,000 for equipment, taxes, and a bank loan. He also had a unit variable cost
of $20 per clock for labor and materials. If the price Tim charges for each of his clocks
is $40, what is his break-even point quantity?
A. 100 clocks
B. 334 clocks
C. 500 clocks
D. 1,000 clocks
E. 10,000 clocks
Answer:
A mother of two toddlers would primarily use an internal search of her prior
experiences with products and brands when purchasing
A. a gift for her babysitter.
B. an iPhone.
C. disposable diapers.
D. a swing set.
E. a weekend getaway.
Answer:
“To remind” is the promotional objective of which stage of the product life cycle?
A. early growth
B. growth
C. accelerated development
D. maturity
E. introduction
Answer:
Adding value to the product (or line) through additional features or higher-quality
materials is referred to as __________.
A. trading up
B. trading down
C. product enhancement
D. product extension
E. quality infusement
Answer:
The first decision in developing an advertising program is to
A. set the budget.
B. specify the advertising objectives.
C. identify the target audience.
D. select the appeal.
E. select the media.
Answer:
The Sports Authority is a sporting goods superstore that provides year-round inventory
of equipment for just about any sport you can name. Even during the off season,
equipment for seasonal sports is available at the Sports Authority. Which utility does the
Sports Authority best provide?
A. time
B. convenience
C. possession
D. form
E. performance
Answer:
Those activities that focus on getting the right amount of the right products to the right
place at the right time at the lowest possible cost are referred to as
A. strategic distribution.
B. distribution management.
C. tactical marketing planning.
D. value chain optimization.
E. logistics.
Answer:
Salesperson Performance Tracking Marketing Dashboard at MooreChem
Moore Chemical created a marketing dashboard for each of its sales representatives.
These dashboards included seven measures – sales revenue, gross margin, selling
expense, profit, average order size, new customers, and customer satisfaction. Each
metric was gauged to show actual salesperson performance
A. in terms of company rank.
B. relative to the rest of the sales team.
C. relative to target goals.
D. plus expectations for the next two years.
E. based upon previous years of experiences.
Answer:
Which of the following has currently affects the baby boomer generation, and thus
those that market to them, in a significant way?
A. They are beginning to have children.
B. They are getting their high school and college educations.
C. They are currently retiring or nearing retirement age.
D. They are just being born.
E. They are beginning their primary school educations.
Answer:
A visitor to proflowers.com can select and buy beautiful cut flower arrangements to be
sent anywhere in the United States. This is an example of a __________ website.
A. portal
B. promotional
C. transactional
D. multichannel
E. direct sales
Answer:
Which term describes factors that limit the range of prices a firm may set?
A. price fixings
B. pricing constraints
C. price elasticities
D. pricing demands
E. pricing margins
Answer:
One of the tools Google is using to pursue its goal of increasing its display advertising
business is called __________.
A. AdPage
B. AdSense
C. AdRank
D. AdWords
E. AdSnap
Answer:
In the VALS framework, each consumer segment exhibits unique media preferences.
Which segment is most likely to view outdoor advertising?
A. Strivers
B. Experiencers
C. Believers
D. Survivors
E. Makers
Answer:
Using an existing brand name to introduce a product that is new to the company into a
totally new, unfamiliar market seems like a good idea. Several years ago, Cosmopolitan
magazine introduced Cosmopolitan-branded yogurt, and it failed quickly. This
innovation strategy is known as a
A. radical invention
B. product line extension
C. disruptive innovation
D. brand extension
E. product deletion
Answer: