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The marketing manager of XYZ brewery is developing a promotional strategy for their
high quality low cost beer. He wants to state the advantages of XYZ's line and give
customers a reason to choose it over the competition. The goal of this promotional
strategy is to ______.
A.Persuade
B.Inform
C.Captivate
D.Remind
E.Manipulate
Promotion provides the opportunity to state your offering's advantages and to persuade
the customer to select you over the competition.
Products that are relatively low-cost, purchased frequently, and for which customers
have little interest in seeking new information are called _________.
A.Shopping goods
B.Convenience goods
C.Specialty goods
D.Unsought goods
E.Consenting goods
Frequently purchased, relatively low-cost products for which customers have little
interest in seeking new information or considering other options and products which
rely heavily on prior brand experience and purchase behavior are called convenience
goods.
Impulse goods are appropriate for ______________, as their sales rely on the consumer
seeing the product, feeling an immediate want, and being able to purchase now.
A.Market development
B.Intensive distribution
C.Selective distribution
D.Exclusive distribution
E.Product development
Intensive distribution is necessary for impulse goods so that consumers can see it, feel
an immediate want, and purchase it.
More than _________ of jobs in the United States are service-related.
A.20 percent of all jobs
B.40 percent of all jobs
C.60 percent of all jobs
D.80 percent of all jobs
E.100 percent of all jobs
More than 80 percent of jobs in the United States are service-related.
When Maria purchases laundry detergent, she is able to easily recall and process
information about Tide, but this does not happen for other brands because she knows
and understands Tide. This is an example of the _______ benefit of brand equity for
customers.
A.Perceived Quality
B.Brand Image
C.Brand Connections
D.Perceived Bonuses
E.Brand Loyalty
Customers are more likely to connect with a brand they know and understand. Since
Maria understands Tide, she can quickly recall it and thus is an example of the brand
connections benefit of brand equity.
Advantages of electronic retailing include __________________.
A.Extensive selection
B.Considerable information available for product research and evaluation
C.Building product communities
D.Individualized customer experience
E.All of the above
Electronic retailing is the communication and sale of products or services to consumers
over the Internet. Electronic retailing offers an extensive product selection, considerable
information for product research and evaluation, product communities, and
individualized customer experiences.
Roberta has many items to include in the SWOT analysis for New Home Builders Corp.
An examination of competitors that have gone bankrupt would be included in the
_______ section.
A.Strengths
B.Threats
C.Opportunities
D.Strategy
E.Weaknesses
Competitors exiting the market should present an opportunity for the remaining
companies.
The ______________ element of the promotion mix is the most effective in generating
action.
A.Direct marketing
B.Advertising
C.Interactive marketing
D.Public relations
E.Sales promotion
Think of sales promotion as prompting a "buy now" response; that is, it is squarely
aimed at the action (behavior) stage of the AIDA model.
When General Motors is familiar with a product and supplier, but still seeks additional
information in the market place, it is called a ________.
A.Straight rebuy
B.Modified rebuy
C.New purchase
D.Filtered buy
E.None of the above
A modified rebuy occurs when a customer is familiar with the product and supplier but
is looking for additional information. Firms periodically review their buying and go to
the market place to be sure that they are getting exactly what they want.
Relationship-oriented firms are _______________.
A.Driven by meeting this quarter's financial projections
B.Seeking the most profitable customers who are highly satisfied with the firm's
offering
C.Constantly investing in new customers and hope they become long-term
D.Often scrambling to replace lost customers
E.Trying to retain all customers
Keeping and cultivating profitable current customers is more efficient and effective than
constantly having to invest in gaining new customers.
Internal forces such as _____ and ______ affect consumer choices.
A.Age, Attitude
B.Culture, Education
C.Personality, Society
D.Learning, Culture
E.Income, Culture
Internal forces are characteristics which vary by individual, change over time, and
affect decisions in complex ways. Age, attitude, education, personality, learning and
income are examples of internal forces whereas culture and society are external in
nature.
Every zip code in the United States falls into profiles provided by Claritas in its
database called _________.
A.GEO-FIX
B.PRIZM-NE
C.AIO
D.Nielsen ratings
E.None of the above
Nielsen's Claritas continually updates a large database called PRIZM-NE that is
zip-code driven. PRIZM profiles every zip code in the United States by both
demographic and lifestyle (psychographic) variables.
_________________ involves independent businesspeople contacting consumers
directly to demonstrate and sell products or services in a convenient location, often the
consumer's home or workplace.
A.Direct selling
B.Television home shopping
C.Vending machine retailing
D.Catalog retailing
E.Electronic retailing
Direct selling is a significant non-store retail channel. It involves independent
businesspeople contacting consumers directly to demonstrate and sell products or
services in a convenient location.
Frito-Lay is using _______ when it offers free in-store samples of Doritos for the
express purpose of getting people to try the product, enjoy the product, and finally
purchase a bag of Doritos.
A.Operant conditioning
B.Cognitive learning
C.Sampling
D.Product trial
E.Classical conditioning
Operant conditioning, entails rewarding a desirable behavior. Enjoying the Doritos
reinforces the positive attributes of the product and increases the probability of a
purchase. Since the consumer must choose to try the product for operant conditioning to
occur, Frito-Lay wants to make the trial as easy as possible and hence distributes free
in-store samples.
Beta testing is designed to __________.
A.Encourage customers to evaluate and provide feedback on the prototype
B.Let engineers inside the company test the product performance
C.Allow product specialists and experts assess a product
D.Identify sales prospects
E.Determine the physical characteristics of the product
Beta testing implies putting the new product in the hands of consumers in order to get
feedback.
Some disadvantages associated with electronic retailing include __________________.
A.Easier for customers to walk away
B.Reduced ability to sell features and benefits
C.Security of personal data
D.All of the above
E.None of the above
In the case of electronic retailing, the customer is in total control of the Web experience
and has the opportunity to walk away at any time. It is difficult to engage customers to
answer questions and the security of data like credit card numbers is an important
concern for consumers. These are the disadvantages associated with electronic retailing.
Generally, _______________ offer a lower price point product relative to the national
brand.
A.Specialty brands
B.National brands
C.Private-label brands
D.B & C
E.None of the above
Generally, private-label brands offer a lower price point product relative to the national
brand.
________________ uses the sales price as a basis of calculating the markup percentage.
A.Cost plus pricing
B.Price war
C.Markup on sales price
D.Average-cost pricing
E.Target return pricing
In determining markup, one approach is to use the sales price as a basis. This is known
as markup on sales price.
__________________ means that title transfer and freight paid on the goods being
shipped are based on the free on board location.
A.FOB pricing
B.Uniform delivered pricing
C.Zone pricing
D.Geographically driven pricing
E.None of the above
FOB stands for free on board, meaning that title transfer and freight paid on the goods
being shipped are based on the FOB location. For example, FOB-origin or FOB-factory
pricing indicates that the purchaser pays freight charges and takes title the moment the
goods are placed on a transportation vehicle.
________________ are the single best source for new product ideas.
A.Consultants
B.Market surveys
C.Outside laboratories
D.Search engines
E.Internal sources
Internal sources such as key employees from R&D, marketing, and manufacturing
know both the capabilities of the company and the needs of the market. Hence, they are
considered the single best source for new product ideas.
Sheridan runs a company that produces bathroom fixtures for interior design firms.
Sheridan needs to raise prices because of an increase in material costs, but he is unsure
of what his customers will accept. What does Sheridan need to do to determine his
customer's perceptions? How will he determine the appropriate increase in price?
Expanded Metal Products is an industrial manufacturer that supplies a wide range of
markets. From commercial air conditioner covers and industrial flooring to exhaust
vents used in manufacturing facilities, EMP has over 45,000 products that mostly have
been developed in-house. Now the company has hired you as a consultant to lead it to
generate new product ideas from outside the firm. What will you do?
Within the organization, who is the person most responsible for maintaining B2B
relationships? Why?
What are the support activities of the value chain?
Which groups of consumers as defined in the consumer product adoption process are of
particular interest to companies launching new products?
Both internal and external forces influence consumers in the decision making process.
Explain the internal psychological and personal characteristics that affect consumer
choices.
State Farm Insurance offers products through a network of 16,000 independent agents.
Assume that the company wants to launch a marketing campaign towards college
students. What does State Farm need to know about the way Gen X communicates?
What marketing tactics would you recommend and why?
List and explain the benefits of brand equity for customers and brand sponsors. How
can each of these be linked to marketing strategy?
