Scenario 13.2
Use the following to answer the questions.
Star Supplies Inc. manufactures commercial-grade floor cleaners, such as vacuums and
floor polishers. The firm has recently begun manufacturing other janitorial-related
product lines, such as paper products and chemical cleaners. Star Supplies distributes its
products in two ways. It sells its vacuum, floor polisher, and janitorial supply products
to an independent business that takes title to the products and then sells them to various
small businesses throughout the region. Also, Star has a list of large businesses that it
distributes to directly, on an as-needed basis. These businesses keep very little inventory
and purchase janitorial supplies in small quantities. Recently, Star has decided to add
two new service product lines paper shredding and a uniform rental service. Clint
Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in
which Star can strategically manage these new businesses. Star has the choice of
marketing the paper shredding service to their large business clients, by picking up the
paper as they drop off the other janitorial supplies, or they can buy a small paper
shredding business and market to both large and small business customers. With regard
to the uniform rental service, Star can either pick up and deliver the uniforms to the
small businesses themselves, or contract that out to a third party.
Refer to Scenario 13.2. Which of the following is Star Supplies Inc. most likely using to
market its vacuum, floor polisher, and janitorial supplies to its small business
customers?
a. Wholesalers
b. Retailers
c. Merchants
d. Industrial distributors
e. Manufacturers’ agents
New products are classified solely as innovations that have never been sold by any
organization.
a. True
b. False
Scenario3.2 Clayton Homes, a mobile home manufacturer since 1934, introduced its
new iHome in 2009. The iHome is one of the first of its kind, designed as an updated,
modern version of the modular home, offered as a base home plus add- ons known as
‘œpods.’ The base home is a oneÂbedroom, oneÂbath 734Âsquare foot version at a
price of around
$80,000. There is also a 1,000 square-foot version for around $100,000. All versions
may add on the additional
one-room pods as desired which are shipped to your location and constructed on-site.
The homes offer galvanized metal roofing, corrugated steel siding, VOCÂfree paints,
and a ‘œbutterfly’ roof that collects rainwater. The iHome uses 30% less energy than a
similar squareÂfoot home and offers ‘œgreen’ characteristics of solar panels, tankless
water heaters, and low-flow faucets. In addition, it comes with bamboo flooring, a
renewable resource. The modular, preÂfabricated design offers endless options for
creating the customer’s home and its engineered building system cuts down on
construction waste. Due to the ‘œgreen effects’ of the iHome, the state governments
have given it a tax abatement for any sales taxes.
Which of the following types of competitive structures is being followed by Clayton
Homes?
a. Monopoly
b. Oligopoly
c. Monopolistic competition
d. Perfect competition
e. Monopsony
The objective of sampling in marketing research is to .
a. obtain responses from as many people as possible
b. control independent variables that might influence research results
c. select representative units from a total population
d. ensure that measures in the study are reliable
e. provide data that can be used to test the hypotheses being investigated
The Highland Racquet Club found that with annual fixed costs of $60,000, its
break-even point is 2,000 members when the membership charge is $60 per person per
year. What is the variable cost per person for Highland?
a. $45
b. $50
c. $30
d. $25
e. $40
An informed guess or assumption about a certain problem or a set of circumstances is
known as .
a. a description of the situation
b. good research design
c. a hypothesis
d. a reliable guess
e. managerial intuition
In the awareness stage of the product adoption process, the buyer seeks information
about the product.
a. True
b. False
To achieve their objectives, consumer advocates write letters to companies, lobby
government agencies, broadcast public service announcements, and boycott companies
whose actions they deem irresponsible.
a. True
b. False
A channel that includes both a manufacturer’s agent and an industrial distributor is
appropriate when:
a. the firm wants specialized personnel to follow up the work of the sales force and
expand the business.
b. the marketer wishes to enter a new geographic market but does not wish to expand
the existing sales force.
c. only one or two channels of distribution are available for the products.
d. the sales force is large and the marketer is thinking of cutting it down to reduce the
costs of production.
e. customers are highly concentrated in one geographic area.
Dual distribution is characterized as:
a. illegal under the Robinson-Patman Act.
b. distribution channels that typically carry exclusive products, such as Rolex watches.
c. marketing environments that are highly competitive.
d. manufacturers that forbid an intermediary to carry products of competing producers.
e. distribution of a manufacturer’s product through two or more different channel
structures.
If Ralston Purina forced Kroger’s grocery chain to place all of its products in the stores’
most favorable locations, it would be:
a. demonstrating sound channel leadership.
b. insisting on exclusive exposure.
c. exercising channel power.
d. minimizing channel conflict.
e. creating a coordinate system.
A new-task purchase is one in which the business makes an initial purchase of a new
item.
a. True
b. False
Psychological influences operate within individuals to determine, in part, their behavior
as consumers.
a. True
b. False
Marketers at Starbucks generated several ideas for new food products. Management
assessed these ideas to determine whether or not they were consistent with Starbucks’
objectives and resources. Several product ideas were dropped after this analysis. The
next stage of development for the remaining product ideas is:
a. product development.
b. idea screening.
c. concept testing.
d. business analysis.
e. test marketing.
Marketers can only use databases developed by other firms.
a. True
b. False