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Mark has long supported a particular brand of footwear and has always bought that
brand. Recently, the footwear manufacturer was embroiled in a controversy for using
child labor at its manufacturing plants. Mark doubts the news reports and continues to
purchase the same brand of footwear. It is most accurate to say that Mark displays
________.
A) selective distortion
B) cognitive dissonance
C) selective retention
D) selective attention
E) consumer ethnocentrism
Packaging decisions that may be called into question under the law include ________.
A) minimum pricing
B) pollution
C) product quality and safety
D) exclusive territorial distributorship
E) product warranty
Customers can be classified into four relationship groups based on their profitability
and projected loyalty. Which customer type is associated with high profitability and
long-term loyalty?
A) barnacles
B) strangers
C) butterflies
D) true friends
E) cash cows
Home Depot and PetSmart are examples of ________.
A) factory outlets
B) warehouse clubs
C) superstores
D) off-price retailers
E) category killers
Leicestershire Renovations has a history of problems with customers who do not pay
their bills on time. Leicestershire Renovations wants to improve its cash situation,
reduce bad debts, and reduce credit-collection costs. Which of the following forms of
pricing would most likely help the firm achieve its goal?
A) by-product pricing
B) zone pricing
C) cash discounts
D) product bundling
E) quantity discounts
Refer to the scenario below to answer the following question.
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as
a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250
pens and pencils of various styles to be displayed in his shop's showcase. Within three
months, the wooden pencils were a hit with all students! Ruben Delgado had never
thought of marketing his talent, but Simon's enthusiasm and the recent sales were
enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100
miles that were situated near schools. He explained his manufacturing processes and
engraving options to each. All three shop owners placed a trial order. Within two
months, just prior to the holiday season, each shop owner placed an additional order.
Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but
in February I was contacted by Elmore Distributors. At that point, I had to make a huge
decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area.
Ruben was offered a two-year contract and immediate inclusion in Elmore's
promotional flyer. Ruben Delgado accepted the offer and, along with it, the
responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on
the magnitude of this project," Ruben added. He decided to place his major focus on the
large contract with Elmore. However, to avoid placing his total emphasis with one
customer, Ruben continued nurturing his four previously established accounts without
targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I
had to hire three full-time employees to work the line while I managed the customer
orders and purchased materials." Ruben paused. "But I can't take the Elmore project for
granted. It might not always be there. I'll have to have a good alternate plan if that day
comes."
If Ruben interacted one-to-one with his customers to design his products and services
according to individual needs, he would be practicing ________.
A) concentrated marketing
B) trigger-based marketing
C) undifferentiated marketing
D) mass customization
E) segmented marketing
Cabela's stores are as much natural history museums for outdoor enthusiasts as they are
retail outlets. This information indicates that Cabela's is practicing ________.
A) wholesaling
B) nonstore retailing
C) shopper marketing
D) experiential retailing
E) showrooming
Critics argue that large marketing companies use patents and heavy promotion spending
to ________.
A) acquire smaller companies
B) bear the social costs of their operations
C) bar new companies from entering an industry
D) achieve economies of scale
E) offset cultural pollution
Under ________, buyers share sales and inventory information directly with key
suppliers who monitor and replenish the buyer's stock automatically as needed.
A) supplier selection
B) proposal solicitation
C) general need specification
D) vendor-managed inventory
E) procurement
Marbles Inc. has placed vending machines in most of its retail stores in Florida.
Consumers can order a pack of marbles by just selecting their requirements on the
touch screen. Which term best describes such machines?
A) POP
B) kiosk
C) virtual catalog
D) interactive television
E) automated teller machine
Sally recently purchased Brand X lotion. In comparing her perception of how the lotion
made her skin feel and look to her expectations about Brand X lotion, Sally was
measuring her level of ________.
A) share of customer
B) customer satisfaction
C) customer equity
D) customer-perceived value
E) customer lifetime value
Today's consumers do not need to rely on marketer-supplied information about products
and services because they can use ________ to seek out a wealth of information.
A) push strategies
B) direct marketing
C) the Internet
D) personal selling
E) public relations
With a(n) ________ marketing strategy, a firm goes after a large share of one or a few
smaller niches.
A) individual
B) mass
C) concentrated
D) differentiated
E) local
When using public relations, the company pays for space and time in the media.
________ are a type of SBU that often require heavy investments to finance their rapid
growth.
A) Cash cows
B) Question marks
C) Stars
D) Dogs
E) Bears
In Japan, Budweiser beer flows from Kirin breweries, and Moringa Milk Company
produces Sunkist fruit juice. These are examples of ________.
A) contract manufacturing
B) management contracting
C) licensing
D) joint venturing
E) directly investment
Building and maintaining profitable customer relationships by delivering superior
customer value and satisfaction is called ________.
A) customer lifetime value
B) customer-perceived value
C) customer relationship management
D) partner relationship management
E) customer equity
Which of the following is an environmental factor that affects channel objectives and
design?
A) economic conditions
B) factory staffing
C) organizational objectives
D) interpersonal influences
E) individual motives
Refer to the scenario below to answer the following question.
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy
truck industry. Although Reliable Tools only has 15 customers, the company is the sole
supplier of hub and axle components to those customers. Monthly sales at Reliable
Tools are approximately $1 million. "You might say we have all our eggs in one
basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but
large accounts. Ninety-five percent of Reliable Tools' customers are located in
Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively
short. However, given the nature of the industry, time spent with each customer is
crucial.
For sales managers to understand how the members of the Reliable Tools sales force
spend their time, the salespeople must submit a(n) ________.
A) expense report
B) time-and-duty analysis
C) mobile conferencing schedule
D) sales forecast
E) incentive plan
All of the following are benefits of direct marketing for sellers EXCEPT ________.
A) access to small groups or individuals
B) program flexibility
C) mass reach and immediate returns
D) low cost
E) easy to personalize products
Which of the following is the practice of inviting broad communities of customers,
employees, independent researchers, and members of the public into the new product
innovation process?
A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing
What functions do buyers serve in a buying center?
Why is price considered one of the most flexible elements of the marketing mix?
Many studies reveal that instead of "Americanizing" the world's cultures, the cultural
exchange between America and other countries goes two ways. Give two examples of
how America has been influenced culturally by foreign products or services.
Define strategic planning. Discuss the steps involved.
The background for the QuickRelief allergy medication ad appearing in the magazine
Better Homes and Gardens shows green grass and lovely flowers. The headline states
"QuickRelief is 54% more effective than the leading prescription." At the bottom of the
ad, in small print, is an explanation of how the effectiveness of QuickRelief was
determined. The ad also shows a package of QuickRelief so consumers can easily
recognize it at the store. Identify the different components of the communication model
for this advertisement.
