AmericanGirlDoll
The American Girl catalog began as a concept to introduce today’s girls to those who
lived in the past. Each historically accurate doll is carefully crafted and dressed and has
books to describe her life. For example, Kristen is an 1854 pioneer girl who is growing
up in Minnesota. Her story begins with her long sea voyage from Sweden. The basic
doll, dressed in a calico dress and striped apron plus the hardcover story of how she got
to Minnesota, costs $90.00. Six more hardback books of Kristen’s life are available for
$74.95. Kristen’s nightgown costs $20.00, and a matching one for the doll owner is an
additional $38.00. Buy both together and the price is only $50.00. A hand- painted
wooden bed and trunk for Kristen are available for $213.00. Shipping costs vary with
the price of the merchandise ordered.
Refer to American Girl Doll. The popularity of the American Girl dolls is so great that
an increase in the price of the basic Kristen doll and books by 5 percent will not
significantly affect the demand for the product. The means that the demand for the
American Girl doll is:
a. elastic.
b. derived.
c. a multiplier.
d. inelastic.
e. symmetrical.
Answer:
A ____ is an off-price retailer that is owned and operated by a manufacturer and carries
one line of merchandise””its own.
a. mass merchandiser
b. factory outlet
c. wholesale club
d. discount store
e. bargain basement store
Answer:
The goal of advertising is to change people’s values.
a. True
b. False
Answer:
Fisher-Price developed a line of toys for infants in China. Babies make up the market
for these products.
a. True
b. False
Answer:
Trade groups, commercial publications, and government departments can be used as
sources of:
a. secondary data
b. consensual information
c. primary data
d. artificial intelligence
e. marketing audits
Answer:
A few years ago, Toro introduced a small, lightweight snow blower called the Snow
Pup. Even though the product worked great, sales failed to meet expectations because
consumers perceived the name to mean that the Snow Pup was a toy or too light to do
any serious snow removal. This is how ____ can influence the consumer
decision-making process.
a. selective distortion
b. incorrect problem recognition
c. lifestyle dissonance
d. Americanization
e. selective exposure
Answer:
Scanner-based research is a system of gathering information from a group of
respondents by continuously monitoring the promotions panel members are exposed to
and their subsequent purchase behavior.
a. True
b. False
Answer:
Among the late majority group, adoption of a product primarily results from:
a. word-of-mouth communications.
b. print advertising.
c. advertising in nontraditional media.
d. broadcast advertising.
e. sales promotions.
Answer:
To be useful, a segmentation scheme must produce segments that meet four basic
criteria. Name and briefly describe each of these four criteria.
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. The “dream lure for the 21st century” will more than likely be an
example of a(n):
a. new product line
b. addition to existing product line
c. discontinuous innovation
d. improvement of existing product
e. repositioned product
Answer:
______ cost is the change in total costs associated with a one-unit change in output.
a. Variable
b. Intermittent
c. Elastic
d. Marginal
e. Flex
Answer:
BreatheRight
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive
device that sticks on your nose to open up the nasal passages. Since their introduction in
the United States, Breathe Right strips have been used by athletes hoping to improve
their performance through increased oxygen flow, snorers hoping for a sound night’s
sleep, and allergy and cold sufferers looking for relief from their stuffy noses. Because
CNS is a small company, it initially had trouble promoting its product. Then San
Francisco 49er Jerry Rice started regularly wearing them, and U.S. sales took off.
Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided
to expand globally, its size made it look for a partner. It chose 3M because 3M already
had a global market distribution system and because the Breathe Right strips
complemented the 3M first aid product line.
Refer to Breathe Right. 3M and CNS entered into a:
a. franchise.
b. licensing agreement.
c. direct countertrade.
d. joint venture.
e. contract manufacturing agreement.
Answer:
Champion Lyte is a sugar-free sports drink designed to replenish electrolytes lost during
activity or illness. Since the product was designed primarily for diabetics, healthcare
professionals who treat diabetics are its primary target market.
a. True
b. False
Answer:
Redbox
Movie DVD sales represent a $16 billion market, and rentals make up another $7.5
billion. Naturally, production studios would prefer consumers purchase DVDs rather
than rent them. Production studios like Twentieth-Century Fox, Warner Bros., and
General Electric refused to sell new releases to Redbox, a DVD vending machine
company, until almost a month after new releases arrived in stores. Redbox, the
ubiquitous DVD rental red kiosks found in and outside of convenience stores, grocery
stores, drugstores, fast-food restaurants, and Walmart, is cutting in on production
companies’ profits. These studios are tangled in lawsuits with Redbox. Sony,
Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and
Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in
operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering
the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by
allowing NCR Corporation, known for ATM machines, to license its name to place
Blockbuster Express kiosks in similar types of locations.
Refer to Redbox. Video stores that distribute DVDs usually also sell popcorn, candy,
soft drinks, and entertainment publications. Basically, they overcome discrepancies of
quantity and assortment by combining products into collections or assortment that
consumers want available in one place. Which channel function does this describe?
a. Logistical functions
b. Transactional functions
c. Facilitating functions
d. Purchasing functions
e. Secondary functions
Answer:
The Tween Scene is a retail store catering to 8- to 12-year-old boys and girls. It
advertises regularly both on radio and in the daily newspaper. The month prior to the
beginning of each new school year, the store buys extra advertising space and time.
This is an example of a(n) _____scheduling plan.
a. continuous
b. replication
c. interval
d. seasonal
e. pulsing
Answer:
The ______ Act strengthened the Clayton Act to prevent corporate acquisitions that
reduce competition.
a. Hart-Scott-Rodino
b. Lanham-Scott
c. Celler-Kefauver Antimerger
d. Robinson-Patman
e. Sherman
Answer:
The distribution structure in business marketing typically:
a. includes at least one wholesaler.
b. is direct.
c. is complex and multistage.
d. uses a three-step channel.
e. uses retail distributors.
Answer:
Modern Bride is a publication that contains articles and lots of ads for the bride-to-be.
Many young women consult this magazine as they plan their special day. The
segmentation base used to define the publication’s target market is based on ______
variables.
a. geodemographic
b. geographic
c. family life cycle
d. lifestyle
e. psychographic
Answer:
It is difficult for most of us to talk about mistakes we have made. Unfortunately, for
organizations like Consumer Credit Counseling to help you work through your financial
issues, you must be willing to honestly discuss your financial condition. In other words,
for these organizations to help, you must be actually involved in the process of
developing your financial plan, which points to the ____ nature of services.
a. intangible
b. inseparable
c. heterogeneous
d. perishable
e. flexible
Answer:
For most American consumers, the brand name Benetton brings to mind a retail
clothing store that carries many products that bear the Benetton brand. But Edizone
Holding, which also owns a chain of restaurants, several toll roads in Italy, and a
telecommunications company, holds the Benetton Group. The list of the company’s
holdings indicates that the company’s managers believe in growth through:
a. market penetration
b. diversification
c. product development
d. market development
e. market integration
Answer:
Salespeople ensure that delivery schedules are met, that the good or service performs as
promised, and that buyers are trained in the use of the product. All of these functions
are part of ____, the final step in the selling process.
a. the preapproach
b. closing
c. lead qualification
d. following up
e. the sales presentation
Answer:
After hearing his company criticized for its failure to respond to consumer needs, the
CEO of a bank realized that his company needs to adhere to the marketing concept and
implement a market-oriented strategy. Which of the following actions would be the best
approach to achieving this goal?
a. Reorganizing the company and making marketing its most important department
b. Hiring new salespeople to find new customers
c. Expanding the advertising budget to make potential customers more aware of its
product offerings
d. Creating cross-functional teams and instructing them to focus on creating greater
customer value
e. Hiring a new product development manager
Answer:
The final stage of sales management is evaluating the effectiveness and performance of
the sales force.
a. True
b. False
Answer:
Which of the following products is MOST likely to use reminder promotion?
a. Samsung 3-D television
b. Brother electronic typewriter
c. iPhone
d. Crest toothpaste
e. All of the above.
Answer:
The direct channel is used more often in consumer markets than in business and
industrial markets.
a. True
b. False
Answer:
You must conduct research to find out a great deal of information about the motives and
desires of potential customers for a home delivery grocery service. You need a sample
of at least 300 people who spend at least $100 weekly at the supermarket, and you
don”t have a lot of money to conduct the research. You should use:
a. a marketing experiment.
b. in-home personal interviews.
c. focus group interviews.
d. mail surveys.
e. observation research.
Answer:
For years, Diet Dr. Pepper has been considered a diet drink. After declining sales, the
company is attempting to present Diet Dr. Pepper as an alternative to having a dessert.
This is an example of a strategy.
a. discontinuous innovation
b. niche
c. new-product-line
d. retargeting
e. repositioning
Answer:
Information collected for the first time for the purpose of solving a particular problem
under investigation is called _____ data.
a. primary
b. secondary
c. dichotomous
d. observation
e. convenience
Answer:
DogSpa
Kelly Tumlin wants to open a dog grooming salon that will offer healthy, natural pet
care and holistic pet products. All of the products sold at the salon will be of the highest
quality and made of all-natural ingredients. Tumlin wants to pamper pets just like a spa
pampers its owners. To determine the feasibility of the grooming salon, Tumlin hired a
marketing researcher who studied all the market information available and determined
that single, white-collar workers between the ages of 30 and 60 were the most likely
people to use the services proposed by Tumlin. The researcher also determined that the
West side of the city offers the best location for the enterprise even though zoning
regulations are much stricter in that area.
Refer to Dog Spa. What type of research did the marketing consultant perform for
Tumlin?
a. Basic
b. Preliminary
c. Applied
d. Causal
e. Factorial
Answer:
Interface
Interface, a manufacturer of floor covering products, has recently entered into an
agreement with Cargill, Inc. and Dow Chemical Company to develop a carpet
manufactured from corn fiber rather than the traditional nylon. Interface hopes to
develop a biodegradable carpet tile that will be sold to the public at prices only slightly
higher than nylon carpet tiles. Interface’s CEO has repeatedly said the mission of his
company is to look for manufacturing materials that are renewable and not petroleum
dependent.
Refer to Interface. Influencing consumers that petroleum-based carpeting is bad for the
environment and that the new fibers are better for the environment will involve which
attitude-change strategy by marketers?
a. Change the belief about all other attributes but this one
b. Change the relative importance on beliefs about this attribute
c. Change the product
d. Use comparative ads
e. Get consumers to recognize a need
Answer:
CollegeDecision
Juan is a senior in high school and is deciding which university to go to after he
graduates. He has received several pieces of mail from local universities with
information on scholarship opportunities because he has a good GPA and a high ACT
score. He and his parents have visited several schools and have talked to advisors
regarding his chosen major of marketing. Juan is thinking about going to the local
community college where all of his friends are planning to go, but his parents want him
to go to a more prestigious school because they think he will get a better education
there.
Refer to College Decision. Juan has narrowed his decision down to three schools. These
schools comprise Juan’s_____ set.
a. primary
b. elite
c. exclusive
d. awareness
e. evoked
Answer: