Public information about a company, good, or service appearing in the mass media as a
news item is:
a. personal selling
b. advertising
c. mass communications
d. publicity
e. sales promotion
Answer:
A nonprofit organization is an organization that exists to achieve some goal other than
the usual business goals of profit, market share, or return on investment.
a. True
b. False
Answer:
Which business process ensures that firms in the supply chain have the resources they
need?
a. Manufacturing flow management
b. Customer service management
c. Product development and commercialization
d. Order fulfillment
e. Demand management
Answer:
A carefully selected group of consumers who agree to participate in an ongoing online
dialogue with a particular corporation is known as a(n):
a. Web community
b. focus blog
c. online focus group
d. Webinar
e. Web-based ethnographic group
Answer:
The ____ of a service most clearly reveals the relationship between its target market
strategy and its distribution strategy.
a. convenience
b. location
c. customization
d. promotion
e. number of intermediaries and outlets
Answer:
A firm with a production orientation is most likely to survive if:
a. there are many small competitors in the marketplace
b. demand for the product it produces exceeds supply
c. the needs of the marketplace are constantly shifting
d. supply for the product it produces exceeds demand
e. there are many large competitors in the marketplace
Answer:
All of the following are factors in the external environment affecting marketing
EXCEPT:
a. the marketing mix
b. economic conditions
c. technology
d. political and legal factors
e. the competition
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. To market the nasal strips in countries outside the United States,
CNS and 3M provided the strips to the national sports teams. For example, sales in
South Africa took off when the entire South African rugby team wore the strips when
they won the World Cup of rugby. This example primarily illustrates the use of which
element of the global marketing mix?
a. Production
b. Publicity
c. Promotion
d. Distribution
e. Product
Answer:
The marketing of new organic cotton teeshirts for Life is good’s existing customers
would be an example of a
_____ strategy.
a. market development
b. product development
c. market penetration
d. product penetration
e. diversification
Answer:
In many African nations, people live on less than $5.00 per day. To grow here, Procter
& Gamble (P&G) must persuade these people to purchase items they have lived without
forever. As a result, P&G sells one-ounce packages of Ariel laundry soap for as little as
10 cents in this market. P&G responded to _______ factors when it developed these
small packages.
a. demographic
b. competitive
c. technological
d. social
e. component lifestyle
Answer:
ZimmerCenterpulse is the world’s largest producer of replacement hips and knees for
orthopedic surgery. They are particularly interested in marketing in the southwestern
United States, where a large aging population lives. Which external environmental
element most directly explains its continued growth?
a. Economic conditions
b. Political conditions
c. Culture
d. Demography
e. Social forces
Answer:
A warranty does not confirm the quality or performance of a good or service.
a. True
b. False
Answer:
As a product enters the growth stage, prices generally begin to stabilize. One reason for
this is that:
a. the product has begun to appeal to a broader market.
b. most competitors have been eliminated from the market.
c. manufacturers hope to recover their development costs quickly.
d. the available supply decreases.
e. All of the above are correct.
Answer:
Which of the following is an interviewing method in which the interviewer reads the
questions from a computer screen and enters the respondent’s data directly into the
computer?
a. Central-location interviewing facility
b. Computer-assisted personal interviewing
c. Computer-assisted self-interviewing
d. Direct-entry interviewing
e. Computer-mediated interviewing
Answer:
Shimano sells the fishing and golfing equipment it manufactures to sporting goods
stores, which in turn sell the equipment to anglers and golfers. Shimano is engaged in
business marketing.
a. True
b. False
Answer:
In which stage of the product life cycle do marginal competitors start dropping out of
the market?
a. Introduction
b. Growth
c. Maturity
d. Decline
e. Shake-out
Answer:
Which type of interview question encourages an answer phrased in the respondent’s
own words?
a. A scaled-response question
b. A Likert item
c. A closed-ended question
d. An open-ended question
e. A free-form question
Answer:
DeBeers sells most of the diamonds it produces to industry. The company controls over
90 percent of the market and has great power over its distributors. In its marketing
channel, DeBeers would be considered a:
a. channel authority.
b. channel member.
c. channel captain.
d. channel gatekeeper.
e. power broker.
Answer:
More and more businesses are adopting consumer penaltiesextra fees paid by
consumers for violating the terms of a purchase agreement.
a. True
b. False
Answer:
Pet’s Eye View Digital Camera is a small, durable digital camera that pet owners can
clip to their pets’ collars. A programmable timer takes pictures every few minutes,
recording a photographic diary of the pet’s day. The camera sells for $25. The average
variable cost for each camera is $10 and the total annual fixed costs for plant operation
are $45,000. What is the break-even point in units?
a. 1,800
b. 2,500
c. 3,000
d. 4,500
e. 5,000
Answer:
In the context of global marketing, product invention can be taken to mean either
creating a new product for a market or drastically changing an existing product.
a. True
b. False
Answer:
A feature of a product is called a(n):
a. asset
b. appeal
c. attribute
d. element
e. benefit
Answer:
There are eight critical business processes on which supply chain managers must focus.
Which of the following is one of those processes?
a. Returns management
b. Sales promotion activities
c. Distribution intensity
d. Public relations activities
e. Environmental assessments
Answer:
Mercedes-Benz
Daimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new
line of downsized luxury vehicles in the United States by 2012. Daimler has
experienced a recent drop in global sales attributed to its product mix that focuses on
larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy
standards coming down the pipeline, Daimler doesn”t want to be left behind. Daimler is
behind its competition, though. Its German rivals, Audi and BMW, have been relatively
successful in the United States. BMW’s Mini Cooper, demanding as much as $34,000,
has already driven away with some of Daimler’s potential sales. While Daimler already
offers the Smart car in the United States, the new offerings will not be going after the
same consumers.
Refer to Mercedes-Benz. Which positioning base will Daimler be using if the company
emphasizes the type of people who buy Mercedes-Benz automobiles in its promotional
efforts?
a. Product user
b. Emotion
c. Price and quality
d. Attribute
e. Use or application
Answer:
SmellyFruit
At first glance, there is little to like about the durian. The durian is a fruit popular in
Thailand that is spiky outside and stinky on the inside. When confronted with the durian
for the first time, the WallStreetJournalrecently reported that westerners often describe
its distinctive sulphurous smell with words like stinky sock sand manure. However, the
durian is so popular in Thailand that one variety of the durian fruit, called the Kan Yao,
has been selling for as high as $200. Even at that price, supply of the Kan Yao cannot
keep up with demand. There are approximately 30 varieties of the durian grown in
Thailand, with the most plentiful selling in the $15 range. The yellow flesh of the
durian, the part you eat, has very powerful smell but possesses a sweet, nutty taste that
Thais cannot seem to get enough of at any price.
Refer to Smelly Fruit. Over the past two years, the price for Kan Yao durian fruit has
increased by 50 percent. If the amount sold has remained almost constant, we would
say that demand is:
a. elastic
b. inelastic
c. unitary
d. highly elastic
e. moderately elastic
Answer:
Sales managers should look for sociability, creativity, and ego strength in applicants.
a. True
b. False
Answer:
A ____ is a name, term, symbol, design, or combination thereof that identifies a seller’s
products and differentiates them from competitors’ products.
a. brand mark
b. trademark
c. brand name
d. UPC
e. brand
Answer:
A survey by RoperASW asked consumers to check where they were most likely to look
for information about a new book. Possible answers were book club catalogs, book
reviews in newspapers, book reviews in magazines, television programs, friends, radio
programs, local reading groups, or the Internet. What type of question was used in this
survey?
a. Multiple choice
b. Dichotomous
c. Scaled response
d. Open-ended
e. Sampling frame
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. Production studios are potentially producing ____ among its existing
distributors by allowing Redbox to rent their DVDs for $1.00.
a. vertical conflict
b. cognitive dissonance
c. supply management divergence
d. horizontal conflict
e. disintermediation
Answer:
Publicity:
a. will never damage a company because it performs the information task of promotion.
b. is free communication.
c. is not persuasive among customers.
d. has to be purchased from the mass media.
e. has internal costs to the company associated with it.
Answer: