The lighting in Jake’s Steak Restaurant is muted. The chairs are covered in leather and
solid enough to last a lifetime, and each table is covered with a white linen cloth. The
colors are limited to earth tones with an occasional splash of red. Patrons can not hear
any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The
smells are extraordinarily varied. This is a description of the restaurant’s ________.
A. promotions
B. layout
C. atmospherics
D. level of service
E. merchandise assortment
Refer to the scenario below to answer the following questions.
The Treble Clef offers a complete line of sheet music, musical instruments, and novelty
gifts of a musical nature. In recent years, owner Gary Zahn has even served as the local
representative of several musical instrument manufacturers, providing a contact person
for three local school districts. “If we don’t have it, chances are excellent that we can get
it for you,” Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a
particular era or just browsing among the hundreds of musical knickknacks in the store.
Gary spends most of his time making presentations to beginning music students at the
local schools and making biweekly visits to the schools in order to deliver instruments,
make minor repairs when possible, or pick up instruments to ship to the manufacturer
for more complicated repairs.
After dragging his feet for quite some time, Gary was convinced that a Treble Clef Web
site could benefit a variety of customers. He began with a simple site explaining store
hours and depicting types of gifts and services available. The site received so much
response that Gary added a question-and-answer option. Questions poured in, ranging
from “Where can I get the sheet music for ‘Hello, Dolly’?” to “Do you carry clarinet
reeds?” to “My saxophone needs two new pads. When will you be at Elmhurst school to
repair it?” The Web site is now able to accept credit card orders, and gifts can even be
wrapped and shipped for no extra charge.
“I don’t know how we did it without our Web site,” Gary admitted. “It allows us to be so
responsive. And our novelties sales have doubled!”
Gary wanted to increase traffic to Treble Clef’s Web site in hopes of broadening his
customer base to other geographical areas. To help Internet users looking for sheet
music and musical instruments find his Web site, Gary would most likely use
________.
A. search marketing
B. branded entertainment
C. classified advertising
D. gaming
E. mobile advertising
________ is a method through which customer needs are translated into product and
quality requirements.
A. Discontinuous innovation
B. Six Sigma
C. QFD
D. ISO 9000
E. !SO 9001
In considering whether to select more than one customer segment as a target market, a
company would be LEAST likely to consider which of the following?
A. its ability to meet the requirements of the customers
B. whether each segment has critical mass
C. the overall cost of meeting customer requirements
D. whether the segments share core similarities of attitude, behavior, and economics
E. the potential profitability of serving different customer groups
The less ________ the demand, the ________ it pays for the seller to raise the price.
A. determined; less
B. elastic; more
C. elastic; less
D. constant; more
E. fixed; more
When deciding how to fulfill a purchasing need, a business would most likely find
leasing the product to be the best option when ________.
A. the business has the capacity to produce the product
B. the product is expected to have rapid technological change
C. the business wants to retain a competitive uniqueness
D. the product is expected to need little servicing
E. the product is expected to undergo few changes
Your marketing department is currently researching the age, race, and household
structures of your target market. Which environment is being researched?
A. social and cultural
B. competitive
C. economic
D. legal
E. political
Which of the following is NOT one of the four steps in developing one-to-one
relationships with customers?
A. customer identification
B. customer authorization
C. customer differentiation
D. customer interaction
E. customization
Lovely Locks, a maker of shampoos, is considering entering the cosmetics product. The
company has a line of mascara and eyeliner it wants to introduce to the market.
However, first Lovely Locks must obtain approval from the ________.
A. Environmental Protection Agency
B. Interstate Commerce Commission
C. Food and Drug Administration
D. Federal Trade Commission
E. Federal Communications Commission
A(n) ________ is a consolidated plan of all of a company’s individual marketing plans.
A. executive summary
B. marketing summary
C. business plan
D. marketing program
E. promotions program
Refer to the scenario below to answer the following questions.
Miller Meat Company contracts with several Midwestern farmers to raise beef and pork
for its meat processing center. To guarantee freshness, Miller Meat Company relies on a
vast distribution network. For delivery to local grocers in Indiana, Miller Meat uses its
own fleet of refrigerated trucks; delivery to these Indiana grocers constitutes 65 percent
of Miller Meat’s business. For deliveries in Illinois, Wisconsin, and points directly west
of the Mississippi River, Miller Meat Company contracts with a refrigerated fleet that
specializes in expediting smaller shipments. For faster delivery during peak times,
Miller Meat Company often uses its own trucks to deliver to the expedited fleet’s
consolidation point from its distribution warehouse in Indiana. During the holiday
season, however, several specialty distributors contract with Miller Meat Company to
package specialty meats in gift boxes, then ship them directly to the recipients. For
these specialty shipments within Indiana, Illinois, and Wisconsin, Miller uses its normal
delivery mode. For all other specialty shipments, Miller ships from its distribution
warehouse via air, then contracts with expedited carriers in various cities to deliver to
the recipients.
Management at a chain of Indiana grocery stores with a long history of purchasing
products from Miller Meat is unhappy with the timing of deliveries. In fact, the grocery
store’s management is considering switching to another meat supplier who will delivery
more frequently. This is an example of a(n) ________ conflict.
A. independent channel
B. vertical
C. horizontal
D. intermodal
E. conventional
Shania works hard to foster an emotional relationship between her Internet customers
and the beauty products and services that she and her staff sell. By promoting a
company culture that values exceptional value and service, Shania aims to create
________ by going beyond the expected.
A. customer delight
B. customer satisfaction
C. switchable customers
D. neutral customers
E. a fair value zone
Which of the following is NOT an area of responsibility for a logistics manager?
A. information
B. storage location
C. marketing
D. inventory
E. production
Refer to the scenario below to answer the following questions.
Fun-Spot Fun Park began as a small amusement park in 1985. Starting with nothing
more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot has
grown into a popular family attraction with 20 rides, a restaurant, and an outdoor
performing arts theater.
“My wife, Gail, and I didn’t know what we were getting into,” commented Ron Hart,
the owner. “We just knew that weekenders coming to the lakes in our rural area
represented an untapped market.”
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even
senior citizens who enjoy strolling through the gardens and arbor.
“There’s something here for everyone,” Gail Hart said with a smile. “Dozens of
companies hold annual company picnics here. We have welcomed class field trips. And
we even had one wedding here at the park!”
“Here’s the funny thing,” Ron chimed in. “We really don’t know why we’ve been so
successful! There is nothing else like Fun-Spot Fun Park in the area. We were just
lucky.”
“I think it’s the ambience of the park that has brought so many visitors,” Gail added.
“We provide a ‘total package’ of entertainment. Plus, we try to change our rides and
various attractions from time to time.”
Ron and Gail Hart admitted that making every visitor happy is a priority. “That has
always been our philosophy,” they said. “Like it says on the entrance to the park, ‘We’re
here to make you happy!’ And we’ve always been able to deliver on that because we’ve
never allowed ourselves to grow too big too quickly.”
Fun-Spot’s statement that “We’re here to make you happy” is an example of a(n)
________.
A. business plan
B. marketing strategy
C. business mission
D. marketing mix
E. strategic plan
Multisegment marketing is likely to ________ and ________.
A. increase research costs; decrease shipping costs
B. decrease resale value; increase sales volume
C. increase sales potential; increase costs
D. increase sales potential, decrease costs
E. decrease sales potential; decrease costs
________ are standards of behavior that define membership in a group.
A. Norms
B. Drives
C. Cues
D. Responses
E. Attitudes
A prospect list that is generated internally is typically considered ________ than a
prospect list generated from external sources.
A. more expensive
B. less reliable
C. less potentially profitable
D. more in-depth
E. more valuable
________ conflict occurs between different levels of the same channel, while ________
conflict occurs among firms at the same level of the channel.
A. Horizontal; vertical
B. Vertical; horizontal
C. Contractual; corporate
D. Corporate; franchise
E. Wholesaler; retailer
Through the use of ________ tags, a company can use a computer that receives
information from an electronic chip to locate exactly where a product is from
production to shipment.
A. RFID
B. UPC
C. VMS
D. IT
E. 3PL
Refer to the passage below to answer the following questions.
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 just whether a
company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman’s licensing agreement in great detail.
Though seeing first-hand the benefits Wellman found 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, the 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.”
Which of the following best explains why Selman & Saks chose exporting as its entry
method to the French market?
A. Exporting offers the highest potential for profit.
B. Exporting offers a lower risk level for the company.
C. Indirect exporting is more expensive than direct exporting.
D. Exporting offers the most savings through scale economies.
E. Exporting offers greater access to less expensive labor and materials.
Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many children’s toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on
top and sensory nodes along the edges. After being charged in the sunlight, the vacuum
could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly
bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to
move around the objects in various directions. This is the same type of technology used
in the manufacturing of children’s race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely
drop after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn Ringler
set up a test market in a Chicago mall and in an appliance store in New Jersey. “It’s such
a novel idea,” Evelyn added. “People will notice it, even if they don’t buy it right away.”
When Ringler set up a demonstration booth to learn about consumers’ feelings toward
her vacuum cleaner, she was doing which of the following?
A. concept testing
B. marketing strategy
C. idea screening
D. business analysis
E. commercializing
Refer to the scenario below to answer the following questions.
Suzanne and Shandra, longtime friends, share a love of animals. For months, they
talked about starting their own pet services business, listing ideas for services they
might provide and how they might market those services. They were most interested in
providing dog and cat grooming and dog walking services.
Suzanne and Shandra looked for information on established pet service businesses in
their suburban area, using information from the local chamber of commerce and online
research. They discovered that none of the local pet services companies provided
on-site pet grooming. Suzanne and Shandra saw this as a great opportunity to
distinguish their business from potential competitors.
The two women wrote a basic business plan and applied for and received a business
loan to start up On-the-Go Groomers. They proposed to purchase an RV motorhome
and outfit it with two comfortable dog and cat grooming stations. On-the-Go Groomers
would come to clients’ homes to provide pet services instead of requiring pet owners to
come to them!
Six months after launching the business, Suzanne and Shandra are pleased with their
success, but both feel that they are not reaching enough potential customers. So far, they
have relied on local newspaper advertisements and positive word-of-mouth to generate
business. Suzanne said, “We have come so far and really have a great little business
going. But I think we could become much bigger with the right plans in place.”
Details that Suzanne and Shandra discovered about competitors in their market would
most likely be analyzed in which section of a marketing plan?
A. executive summary
B. measurement and controls
C. marketing situation
D. forecasting
E. company description, purpose, and goals
A company that created an entirely new consumer technology would be most likely to
begin a marketing campaign focused on which of the following marketing objectives?
A. inform about benefits
B. persuade about value
C. stimulate action
D. help the consumer recognize a need
E. remind about brand
You want to observe how often consumers listen to music throughout their day and
what different audio devices they use. You are also interested in how consumers store
and access their own music collections. You should conduct ________ research.
A. causal
B. experimental
C. secondary
D. pure
E. exploratory
The pharmaceuticals division of Omni Healthcare holds low market share in a high
growth market. In order to increase the pharmaceuticals division’s market share,
managers would be most likely to decide which of the following?
A. hold the division’s share
B. maintain the division’s relevance to consumers
C. use money from a cash cow to promote the division
D. sell off the division
E. divest the division
Using concentrated marketing, the marketer goes after a ________ but ________
consumer segment.
A. small; undefined
B. small; well-defined
C. large; well-defined
D. large; undefined
E. medium-sized; local
Which type of innovation involves introducing an existing product or service to a new
market?
A. concept change
B. discontinuous innovation
C. context change
D. cosmetic change
E. style change
During which of the following time periods was an increased focus on social
responsibility in business most significant?
A) the first decades of the twentieth century
B) the Great Depression
C) the 1950s
D) the 1980s
E) the 2000s
Consumers usually perceive higher-priced products as ________.
A. out of reach for most people
B. having high quality
C. having low profit margins
D. having cost-based prices
E. being in the introductory stage of the product life cycle
The goal of ________ is to influence how consumers think, feel, and act toward a brand
or market offering.
A. encoding
B. decoding
C. marketing analysis
D. marketing communications
E. feedback
Which of the following is true about the demand curve?
A. It is used to illustrate the effect of price on the quantity supplied.
B. It is always graphically depicted by a straight line.
C. It shows the quantity of product customers will buy in a market during a period of
time even if other factors change.
D. It usually slopes upward and to the right.
E. It shows the relationship between product demand and product price.
GRP is determined by multiplying ________ by ________.
A. impact; impressions
B. impact; reach
C. engagement; frequency
D. reach; frequency
E. engagement; impact