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After Mattel evaluated many new products to add to its Barbie product line and before
any prototype was created, the toy manufacturer instructed a committee to select three
of the ideas to present to a group of consumers. The consumer group was asked to
evaluate the ideas in terms of their marketability. This stage of new-product
development is called:
a. prototype screening
b. concept testing
c. market testing
d. idea manipulation
e. idea diffusing
Answer:
Management practices that reflect a highly coordinated effort between supply chain
partners are said to be "integrated."
a. True
b. False
Answer:
Girls between the ages of 8 and 15 years are one of the growing markets for high-end
shoe manufacturers, and podiatrists say the trend is leading to many stylish young girls
with grown-up foot problems. Shoe manufacturers who develop and market adult-styled
shoes to this group are not operating at a(n) _____ responsibility level of the pyramid of
corporate social responsibility.
a. legal
b. philanthropic
c. ethical
d. economic
e. cultural
Answer:
Ads on shopping carts at grocery stores and in screen savers are examples of:
a. communications networks.
b. alternative media.
c. distribution channels for ads.
d. outdoor advertising.
e. direct advertising.
Answer:
Hyatt Regency's Platinum Card Program allows members to bypass any line at the
checkin desk and get immediate check-in service. In this example, _____ are developed
by offering value-added services that are not readily available from other hotel chains.
a. price incentives
b. social bonds
c. service delivery paradigms
d. personal communication channels
e. structural bonds
Answer:
Yield management systems were first developed by which industry?
a. The manufacturing industry.
b. The airline industry.
c. The retail industry.
d. The healthcare industry.
e. The automobile industry.
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. Which of the following is the BEST example of a fixed cost
for Cecilia Villaveces Cakes?
a. Eggs, butter, sugar
b. Delivery costs
c. Part-time employees
d. Electricity consumption
e. Food preparation licenses
Answer:
TeslaMotors
"Going green" doesn"t have to be boring. The Tesla Roadster Sport is an electric car
that goes from 0 to 60 in four seconds and drives more like a race car than an
environmentally friendly ride. But that level of performance will set you back
$128,500. As of 2009, Silicon Valley"based Tesla Motors, Inc. was the only company
offering highway compatible electric cars. Most Roadster Sport buyers are car
enthusiasts and are buying them for the "fun toy" aspect of having an electric car rather
than for environmental reasons.
Refer to Tesla Motors. If total fixed costs are $23,400,000 and the average variable cost
is $50,500, how many Roadsters must Tesla sell to break even?
a. 130
b. 182
c. 250
d. 300
e. 463
Answer:
Procter & Gamble uses cents-off campaigns, couponing, and free samples to increase
sales of Tide detergent. In other words, it uses a ___ promotional strategy.
a. push
b. personal selling
c. pull
d. reinforcing
e. kinetic
Answer:
Innovyx is an e-mail marketing service provider. It has a new ad campaign aimed at
changing negative perceptions of e-mail. The ads explain how much cheaper e-mail
advertising is than traditional advertising and what a high return on investment it can
generate if used properly. Finally, the message ends by suggesting that companies
wanting to promote their products give e-mail a chance to show what it can do. This
promotion has the task of:
a. persuading.
b. informing.
c. reminding.
d. suppressing.
e. rewarding.
Answer:
One example of price bundling occurs when Nintendo sells the Wii Fit balance board
with the Wii game system at a lower price than the total price of each if bought
separately.
a. True
b. False
Answer:
The five major promotional tools (advertising, personal selling, sales promotion, social
media, and public relations) are known collectively as the:
a. communication model.
b. advertising campaign.
c. marketing mix.
d. publicity four.
e. promotional mix.
Answer:
Another name for outsourcing is contract logistics.
a. True
b. False
Answer:
Companies use environmental management when they implement strategies that
attempt to shape the external environment within which they operate.
a. True
b. False
Answer:
One of the fastest growing tween markets is:
a. Technology
b. Home dcor
c. Energy drinks
d. entertainment
e. Athletic apparel
Answer:
ArtSupplies
It's September and Sophia wants to buy some arts and crafts supplies for an afterschool
program she is developing for her daughter's elementary school. In her Sunday
newspaper was a flyer from Michaels, an arts and crafts retailer. As she looked through
the newspaper insert, she noticed that if she purchased three or more bottles of Alene's
Tacky Glue, the regular price of $1.50 each was reduced to $1.15 each. She also saw
that the store priced its plastic storage boxes at $1.99, $3.99, and $5.99. She thought
they would be useful for storing each child's projects. On the front page of the flyer was
an ad for Funky Girls Gel Pens, something she knew her daughter would love to use.
The price at Michael's was $6.99 lower than the price she had found at the other stores
that carried the pens. She thought that some of the older girls might like to start a
scrapbook and was pleased to find that Michaels had a scrapbook starter kit, which
includes scissors, book, pages, and stickers for only $15. The items could be purchased
separately for $19.99. The flyer also announced that all flag-related items leftover from
its Fourth of July sale were reduced by 40 percent.
Refer to Art Supplies. Michaels was trying to get consumers into the store with the
Funky Girls Gel Pens promotion in hope that they will purchase other, higher-margin
items. This is an example of:
a. seasonal pricing.
b. psychological pricing.
c. price lining.
d. price bundling.
e. leader pricing.
Answer:
Inez believes that makeup is the most important part of her wardrobe. She spends
considerable time comparing the prices, skin tones, and color options available at
various cosmetics counters in department stores. For Inez, makeup is a convenience
product.
a. True
b. False
Answer:
All of the following are strategies to make the demand for a good or service more
inelastic EXCEPT:
a. reducing consumer awareness.
b. cultivating selected demand.
c. changing the package design.
d. creating a unique offering.
e. heightening buyer dependence.
Answer:
When Rick purchased tickets to a concert on the Internet, it was an example of:
a. single-sourcing distribution.
b. one-way channelization.
c. electronic distribution.
d. mass customization.
e. aggregated marketing.
Answer:
A dentist hired a janitorial service to clean her office every evening. The original
contract called for the janitorial service to dust, mop all floors, and vacuum the rugs.
After six months, the dentist decided to renegotiate the contract with the janitorial
service to include cleaning the office bathroom and washing the office windows as well
as the original tasks. The renegotiated contract is an example of a:
a. contingency buy.
b. modified rebuy.
c. negotiated buying system.
d. straight rebuy.
e. new buy situation.
Answer:
A series of related advertisements focusing on a common theme, slogan, and set of
advertising appeals is referred to as a(n):
a. advertising campaign.
b. message strategy.
c. continuity program.
d. flight.
e. creative program.
Answer:
Which of the following is NOT a type of competitive advantage?
a. Management structure
b. Cost
c. Product differentiation
d. Niche
e. Service differentiation
Answer:
RapalaVMCCorporation
Finlandbased Rapala VMC Corporation is the world's largest fishing lure manufacturer.
It developed its first fishing lure""a cigarshaped minnow""in 1962. The annual market
for fishing lures in terms of retail sales is approximately $600 million. Rapala VMC
garnered one-third of that amount in 2008. New lures must be introduced each year in
order to stay competitive in this industry. Like other lure manufacturers, Rapala focuses
on two questions in developing and making new lures: Does it work, and does it look
good? Developing a new lure takes two or three years and involves extensive field
testing by tournament professionals and fishing guides. At the annual fishing industry
trade show in 2008, Rapala unveiled the "dream lure for the 21st century."
Refer to Rapala. Because buyers of fishing lures want to have the newest, most
technologically improved lure, most of Rapala's customers would more than likely fall
into the category of adopters.
a. laggards
b. prompt diffusers
c. early adopters
d. innovators
e. early majority
Answer:
Clorox describes individuals who buy lots of cleaning products as heavy users. This is
an example of how companies use benefit segmentation.
a. True
b. False
Answer:
Diaz
John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop
called Diaz in a small upper- middle-class neighborhood. It rapidly became popular
because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees
from around the world, plus coffee-making necessities such as grinders and brewers.
Within ten years, Diaz was operating a lucrative mail-order business in addition to his
coffee shop. Upon entering the shop, the first thing the customer sees is a countertop
crowded with all of the machinery needed for making a
perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed
chairs. Bookshelves on one wall hold books about coffee for patrons to read while they
sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a
pound when they leave. The store carries all types of coffee from $8 per pound
Brazilian Cerrado to $300 per pound Kopi Luwak from Sumatra.
Refer to Diaz. Customers of Diaz's coffee shop can purchase coffee, coffee makers,
mugs, chocolate, music CDs, and all sorts of unique gift items. Diaz is practicing:
a. m-commerce.
b. interactive merchandising.
c. lifestyle merchandising.
d. scrambled merchandising.
e. pop-up shopping.
Answer:
A researcher wants to determine what percentage of the population in the southeastern
United States would use a mass transit system if it were well maintained. He gets
telephone books from every city with over 200,000 people in those states and selects
the fifteenth name in the middle column on every hundredth page as his sample. He has
made a _____ error.
a. targeting
b. random
c. nonprobability
d. frame
e. reliability
Answer:
Compared to the other classifications of consumer products, shopping products are:
a. widely available, so they need little or no promotion.
b. usually less expensive than convenience products.
c. purchased without significant planning.
d. usually more expensive than convenience products and are found in fewer stores.
e. purchased immediately after the consumer realizes he or she needs them.
Answer:
Tower Fasteners developed a commanding position in the fastener industry by having in
stock over 150,000 different types of fasteners. Tower's primary market is defined as
companies with a need for specialized fasteners.
All of the following are characteristics of the buying organization that Tower can use
for segmentation EXCEPT:
a. psychographic variables.
b. the method the company uses to make purchases.
c. geographic location.
d. personal characteristics of buyers themselves.
e. company size.
Answer:
Ocean Spray's development of Craisins sweetened dried cranberries to compete against
raisins most directly affected the element of the company's marketing mix.
a. place
b. production
c. product
d. distribution
e. target market
Answer:
Inflation is a measure of the decrease in the value of money, expressed as the
percentage reduction in value since the previous year.
a. True
b. False
Answer:
Clorox saw sales of its bleach products suffer when it introduced laundry detergents
with bleach as an added ingredient. This is an example of:
a. demarketing
b. cannibalization
c. undifferentiation
d. repositioning
e. perceptual confusion
Answer:
Sometimes multinational firms will follow a penetration strategy in developed countries
and a skimming strategy in developing countries.
a. True
b. False
Answer:
A U.S. manager is working with some Indonesians who do not speak English. In
attempting to exchange information, they are using symbols to assign meanings to the
facts the manager hopes to convey. This is an example of communication.
a. True
b. False
Answer:
