Sav-MoreSupermarkets
Observers of the supermarket industry see no letup in the use of checkoutcounter”based
target marketing. Sav More supermarkets have installed an electronic marketing system
in their stores. The system allows the stores to do more direct mail promotions by
combining the current SavMore’s check cashing cards with the new SavMore’s Bonus
Club frequent shopper cards. The new system uses barcode scanners and magnetic
cards issued to shoppers to track all purchases. As with most customer databases,
demographic information is gathered for subsequent offers to frequent shopper club
members, and psychographic information is tracked whenever customers use the
magnetic strip cards to make purchases. Generally, marketing to these consumers
achieves better results than freestanding insert (FSI) coupons.
Refer to SavMore Supermarkets. Al Edisto, SavMore’s frozen food manager, decided to
survey each customer who stops in front of the frozen orange juice section on Saturday.
Edisto used a ____ sample for his research project.
a. random
b. piggyback
c. probability
d. stratified
e. convenience
Answer:
H&M plans to open a new store in Saudi Arabia. It will be staffed completely by
women. Saudi Arabia has strict laws about women interacting with men other than their
husbands, so only women will be permitted to shop there. Which type of demographic
segmentation is H&M using?
a. Lifestyle
b. Usage rate
c. Benefit
d. Age
e. Gender
Answer:
Maureen purchased a package of Bounce fabric sheets with Febreeze citrus scent. Since
both brands were prominently listed on the package, this would be an example of:
a. equity branding
b. co-branding
c. conjunctive branding
d. private branding
e. complementary branding
Answer:
The number of different varieties of fishing lures carried by the Angler’s Store refers to
the store’s:
a. supply standard.
b. complete retail offering.
c. retail mix.
d. volume.
e. assortment depth.
Answer:
Otis Elevators has entered into a strategic alliance with a company in France from
which it gets its elevator door systems. It has a similar agreement with a manufacturer
in Japan that provides it with special motor drives. A manufacturer in Spain has worked
closely with Otis to create small geared parts necessary for the manufacture of
elevators. The component parts are assembled at its plant in the United States. Otis
elevators can be found in buildings all over the world. Otis Elevators is an example of
a(n):
a. cultural marketer.
b. global trader.
c. multinational corporation.
d. exporting company.
e. global enterprise.
Answer:
Apple Computer, Inc. recently dropped “Computer” from the company’s name to
become Apple, Inc. This was a part of its away from simply being perceived as a
computer company.
a. quality modification
b. aesthetic modification
c. demarketing
d. repositioning
e. functional extension
Answer:
Christian understands that a Black Diamond brand tent is suitable for several weather
conditions, such as rain, snow, and sweltering heat. This is a description of his about the
Black Diamond tent.
a. beliefs
b. attitudes
c. standards
d. motives
e. valuations
Answer:
For products like compact discs (which are in the decline stage of the product life
cycle):
a. persuasive advertising is commonly used.
b. heavy public relations is used to maintain brand loyalty.
c. personal selling should be used to obtain distribution.
d. sales promotion is used to build market share.
e. none of these is true.
Answer:
All of the following are elements of the marketing plan EXCEPT:
a. the business mission statement
b. situation analysis
c. the target market strategy
d. the marketing mix
e. portfolio analysis
Answer:
_____ is the strategy that uses technology to deliver customized services on a mass
basis.
a. Mass standardization
b. Aggregated service
c. Technological processing
d. Mass customization
e. Aggregated marketing
Answer:
Regency, Inc. makes disposable cap and gown sets for graduations. Each cap and gown
set sells for $15. The average variable cost for manufacturing ten cap and gown sets is
$100. Total fixed costs for the year equal $65,000. Calculate the break-even point in
units.
a. 650
b. 765
c. 1,300
d. 4,334
e. 13,000
Answer:
Consumers purchasing an automobile in Hong Kong must pay a 100 percent tax on it.
This tax is imposed by the government on all automobiles entering the country and is
called a(n):
a. tariff.
b. quota.
c. license.
d. boycott.
e. exchange control.
Answer:
Commercial truck drivers have suffered financially as a result of increasing diesel fuel
prices. As they look for ways to make their trucks perform more efficiently,
manufacturers have created truck body designs that are more aerodynamically sound.
This is an example of how _____ factors can help during recessionary periods.
a. technological
b. competitive
c. economic
d. cultural
e. demographic
Answer:
Which of the following statements about the use of social media in marketing is TRUE?
a. All marketers understand that social media is mostly about return on investment
(ROI).
b. Marketers have plenty of hard evidence as to the effectiveness of the measurements
and metrics that track social media.
c. Given the relative ease and efficiency with which organizations can use social media,
a positive return on investment is likely for manyif not mostorganizations.
d. Fewer than 30 percent of marketers plan on increasing their investments in social
media.
e. All of the above are true.
Answer:
The company’s objective is to increase sales next year. This is an example of a
wellstated objective.
a. True
b. False
Answer:
Which of the following is an information source that is not associated with advertising
or promotion?
a. External
b. Nonmarketing-controlled
c. Marketing-controlled
d. Unbiased
e. Primary
Answer:
Barry collects antique watches and has decided to sell a few of them on eBay. Some of
the watches he wants to sell are rare and very valuable. What condition is necessary for
an exchange to occur between Barry and a buyer?
a. His watch should have a certificate of authenticity.
b. The opening bid must be lower than other watches being sold on the site.
c. Buyers must provide payment before the item is shipped.
d. Delivery must take place within 2 days of the purchase.
e. Potential buyers must be able to see the watch and understand its qualities.
Answer:
Once adequate amounts of data have been collected, the researcher should present the
report.
a. True
b. False
Answer:
Circuses
As recently as 20 years ago, circuses came to town with tents, animals, clowns, and
other performers. An advance man arrived about two weeks before the circus actually
arrived, covered the community with posters, and gave out free tickets to
schoolchildren. If the advance man had done a good job, when the circus arrived and
opened its tent doors, 300 to 600 people would fill its seats. When the largest circus
organizations merged, the newly formed Ringling Bros. and Barnum & Bailey’s
Greatest Show on Earth began performing in 4,000seat arenas.
Attendance, however, has stagnated in recent years. People have stopped going to the
circus because they miss the circus tent and the intimate atmosphere it created. The
newest thing in circuses is a return to the tent atmosphere with an emphasis on the types
of entertainment that were popular years ago. Antique circus wagons, calliope music,
and cotton candy are replacing the exotic animals and the prima donna performers. To
satisfy the needs of this new audience, the tent circus now sells lattes and wine.
Refer to Circuses. The circus’s goal of redesigning the circus experience is being
completed through the coordination of many marketing activities, such as value pricing,
a product that includes exciting performances, tent venue locations, and promotion.
These activities make up the for the circuses.
a. opportunity analysis
b. value of marketing
c. marketing environment
d. target market
e. marketing mix
Answer:
RockTenn
RockTenn produces packaging products. The company makes cartons that will hold a
dozen Dunkin” Donuts, waffle fries for Chik-fil-A, Gillette razors, Haagen-Daz ice
cream, express mail envelopes for FedEx, and much more. RockTenn business
fluctuates depending on consumer demand. As plastic products become more
expensive, companies turn to cardboard and paper to package their products.
Refer to RockTenn. Lubricants used to maintain the machinery that produces cartons
would be an example of:
a. major equipment.
b. accessory equipment.
c. raw materials.
d. supplies.
e. processed materials.
Answer:
Which of the following statements describes a limitation associated with break-even
analysis?
a. It is sometimes difficult to ascertain whether a cost is fixed or variable.
b. It requires the calculation of marginal revenue.
c. It strictly considers demand.
d. It assumes variable cost per item, which is difficult to calculate.
e. It can only be expressed as a break-even point in dollar amounts.
Answer:
All of the following are service components customers use to evaluate service quality
EXCEPT:
a. validity.
b. empathy.
c. assurance.
d. responsiveness.
e. reliability.
Answer:
Which of the following statements about the European Union (EU) is true?
a. The EU creates a single Europroduct for a generic Euroconsumer.
b. The EU removes all internal trade barriers and standardizes regulations in European
countries for easier trade.
c. The EU can correctly be called the “United States of Europe” because all European
voters have agreed to these changes.
d. The existence of the EU eliminates protectionist movements by United Europe
against the Japanese and the United States.
e. The EU is the largest economy in the world.
Answer:
One type of sampling error is ____, which is created when the sample actually
interviewed differs from the sample drawn.
a. random error
b. diagnostic error
c. nonresponse error
d. nonprobability error
e. measurement error
Answer:
Dr. Neuman is a marketing professor who uses her students in research studies because
they are convenient and readily accessible. She is using a sample.
a. single-source
b. random
c. probability
d. representational
e. convenience
Answer:
Marketing channels make distribution simpler by reducing the number of transactions
required to get products from manufacturers to consumers. This is called:
a. forward integration
b. contact efficiency
c. elimination of temporal discrepancies
d. sorting
e. reciprocity
Answer:
The AIDA concept:
a. proves that promotional effectiveness is an insignificant abstract term.
b. demonstrates that buyers go through nine stages on the way to making a decision.
c. is a model effectively showing that advertising can move people to the purchase
stage.
d. is a model for reaching promotional objectives that outlines a sequential process for
effective promotion. e. is a budget plan based on the effectiveness of various
promotional mixes in achieving certain objectives.
Answer:
Relationship selling is a ____ process that emphasizes _____ as a key ingredient in
identifying prospects and developing them as long-term, satisfied customers.
a. multistage, empathy
b. popular, assertiveness
c. short-term, persuasion
d. win-lose, personalization
e. modern, standardization
Answer:
In a nonprofit organization, ____ are often concerned with partially or fully defraying
costs rather than achieving a profit.
a. nonfiscal costs
b. pricing objectives
c. cause-related goals
d. equity earnings
e. liquidity fees
Answer:
Often a seller will establish a series of prices for a family of merchandise items. There
may be several different models at specific price points but no prices in between. This
policy is called:
a. price lining.
b. price bracketing.
c. family pricing.
d. variable pricing.
e. price bundling.
Answer: