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Sparks Inc. has a growing ________ market in the U.S. consisting of individuals and
households that buy Sparks' products for personal use.
A) consumer
B) government
C) business
D) international
E) financial
Elmo Inc., a global conglomerate, designed the ElBrush, an electric toothbrush. Sensing
market demand for the electric toothbrush, Elmo started with an ideal selling price of $3
based on customer value considerations and then targeted costs to ensure that the price
was met. This exemplifies ________.
A) competition-based pricing
B) cost-plus pricing
C) target costing
D) everyday low pricing
E) high-low pricing
A regional supermarket chain runs print, radio, and television advertisements
announcing that 1 percent of its sales is donated to local after-school programs for
underprivileged youth. This is an example of ________.
A) cause-related marketing
B) generational marketing
C) sustainable marketing
D) market segmentation
E) product differentiation
The ________ concept is specifically focused on the future welfare of consumers.
A) strategic planning
B) direct marketing
C) societal marketing
D) consumer business
E) telemarketing
To measure the ________ effects of an ad after it has aired, the advertiser can evaluate
how the ad affected consumer recall, product awareness, and preference.
A) sales
B) profit
C) communication
D) continuity
E) associativity
Rudolf Technologies Inc. decided to enter the automobile service market. Consequently,
the company decided to procure the tools and machines needed from a reputable
supplier. Rudolf Technologies is facing ________.
A) a new task situation
B) a modified rebuy situation
C) negative competition
D) the need to outsource its primary service offering
E) the pressure to diversify its market
Refer to the scenario below to answer the following question.
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had
little reason to become involved in the global arena. But after acquiring Wellman
Enterprises, whose largest division engages in a licensing agreement with a German
firm to produce women's hosiery, managers at Selman & Saks wondered whether a
company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail.
Even after seeing the benefits Wellman achieved with the licensing agreement,
managers decided that Selman & Saks would target the French market merely via
exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair
trimmers entered France. For six months, sales were mediocre. But after that, sales
suffered. Opinions varied among numerous managers as to the cause of the failure.
"Who knows the local market better than people who live there?" was a comment heard
throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a
licensing agreement, before racing to get there."
Selman & Saks offered the same razors and trimmers in France as in the United States.
Selman & Saks is an example of a ________.
A) product adaptation
B) communication adaptation
C) product invention
D) straight product extension
E) standardized global marketing plan
Which of the following appeals is based on the idea that consumers often feel before
they think?
A) emotional appeal
B) rational appeal
C) structural appeal
D) standardized appeal
E) integrated appeal
Deceptive practices fall into three groups: pricing, promotion, and ________.
A) product
B) placement
C) packaging
D) publicity
E) service
Which of the following is the final stage in the new product adoption process?
A) awareness
B) adoption
C) evaluation
D) interest
E) trial
Which of the following is an advantage of using newspapers as an advertising medium?
A) long life
B) good reproduction quality
C) large pass-along audience
D) broad acceptability
E) no ad competition within the same medium
________ refers to a measure of the sensitivity of demand to changes in price.
A) Price elasticity
B) A demand curve
C) Price-value equation
D) Marginal utility
E) Income elasticity of demand
Hank is an assistant marketing director for a firm in a market with many low-margin
customers. What type of relationship with these customers would be the most profitable
for him?
A) full partnerships
B) basic relationships
C) causal relationships
D) club marketing programs
E) inverse relationships
Alex Smith rents storage space to college students who go home for the summer but do
not want to haul all of their property home and back. The business is profitable during
the summer months, but when the storage space is unoccupied in the off-season, Alex
loses money. Which of the following characteristics of service is most likely the source
of Alex's problem?
A) intangibility
B) perishability
C) inconsistency
D) variability
E) inseparability
Refer to the scenario below to answer the following question.
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer
Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the
other, The Landing was an immediate hit with weekend lake visitors and local residents
alike. In the summer, boaters parked at the piers and bought all their fishing needs, such
as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter
months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot
coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a full-fledged residential area. Many of the
houses, which were built as cottages in the 1950s and 1960s, were remodeled into
residential homes. By the end of the 1970s, the days of small motorboats and 10
mile-per-hour speed limits were gone; skiing and fast speedboats became the rage.
Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing
could not compete with larger local retailers. He eventually enlarged the sandwich
counter, transforming the bait shop and grocery into a restaurant with a full menu
typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I
still had a summer crowd that relied on us for their fishing needs, but we couldn't
survive a whole year on four months of profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became
upscale. "I could see that people were spending more on their speed boats than what
they had originally paid for their cottages!" Casey exclaimed. Many of the cottages
were inherited by children and grandchildren of the original owners. Once again, the
scene started to change as many of the lake houses were used only as weekend lake
homes. Unlike the previous generation, a vast number of the current owners could
afford to live closer to their jobs while maintaining lake homes. "At this point, business
wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing
into a bar with a lounge area. "The change might have been too drastic," Casey said,
"but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces."
Which of the following microenvironment actors has had the most influence on The
Landing?
A) competitors
B) suppliers
C) marketing intermediaries
D) resellers
E) citizen-action publics
In Chinese, the KFC slogan "finger-lickin' good" came out as "eat your fingers off."
And Motorola's Hello-moto ringtone sounded like "Hello, Fatty" in India. Which of the
following strategies can be used to avoid such mistakes?
A) communication adaptation
B) standardized global marketing
C) straight product extension
D) product adaptation
E) communication extension
Refer to the scenario below to answer the following question.
Bryant and Anne are the owners of the Good Green Grocer, a small but successful chain
of organic food stores. The organic food sold by Good Green Grocer is of good quality.
Also, it is tasty and has long-term health benefits. Bryant and Anne's business has
expanded as more and more consumers are interested in eating organic foods. What
started as one shop in Vermont has expanded to 15 stores in Vermont, New Hampshire,
Massachusetts, and Maine. Much to their delight, Bryant and Ann have found that many
people are willing to pay a bit more for food that is organically grown.
Sunday ads for the Good Green Grocer run in area newspapers, with special
promotional prices offered for a list of the "Top Ten Take Homes" each week. Regular
customers of the Good Green Grocer know that the promotional items often run out of
stock by mid-week, so the store typically sees its heaviest traffic on Sunday and
Monday.
Some customers believe that the Good Green Grocer purposefully runs weekly
promotional prices on items that are low in stock, leaving most customers who come to
the store hoping for lower prices but unable to buy the out-of-stock sale items. If this
were true, then the Good Green Grocer would most likely be accused of ________.
A) using puffery
B) deceptive pricing
C) deceptive promotions
D) deceptive packaging
E) green washing
________ is the product life cycle period when sales fall off and profits drop.
A) Introduction
B) Growth
C) Maturity
D) Decline
E) Product development
A ________ is a group of retail businesses built on a site that is planned, developed,
owned, and managed as a unit.
A) warehouse club
B) franchise
C) shopping center
D) supermarket
E) hypermarket
________ occurs when product or service producers cut out intermediaries and go
directly to final buyers or when radically new types of channel intermediaries displace
traditional ones.
A) Extensive distribution
B) Multichannelization
C) Disintermediation
D) Inclusive distribution
E) Cross merchandising
Which consumer promotion tool requires the consumer to provide a proof of purchase
to the manufacturer?
A) price packs
B) coupons
C) samples
D) rebates
E) displays
In the audio equipment industry, Philips and Sony belong to the same ________.
A) target group
B) strategic group
C) experimental group
D) control group
E) focus group
Which of the following wholesaler's channel functions is demonstrated when a
wholesaler holds inventories and thereby reduces inventory holding costs and risks of
suppliers and customers?
A) financing
B) transporting
C) buying and assortment building
D) warehousing
E) bulk breaking
