One of Porter’s generic business strategies involves controlling expenses and lowering
product prices targeted at a narrow range of market segments. This is referred to as a
__________ strategy.
a. cost focus
b. cost leadership focus
c. differentiation focus
d. differentiation
e. profit enhancement
Answer:
TAG Heuer Ad
When TAG Heuer (see the ad above) uses a(n) __________ like Maria Sharapova to
promote its watches, it believes she is an opinion leader who can influence the purchase
decision of its target market.
a. spokesperson
b. product champion
c. innovator
d. BzzAgent
e. rainmaker
Answer:
Which of the following statements would most likely be spoken during Step 2 of the
price-setting process?
a. “It’s important to offer discounts to seniors.”
b. “We have to try to achieve an 8 percent profit share.”
c. “The starting price should be $4.99 and we can raise the price again in six months.”
d. “But, if we increase the price even by one dollar, how many customers will we lose?”
e. “We should probably price the extra large version somewhere between $600 and
$650.”
Answer:
The view that holds an organization should satisfy the needs of consumers in a way that
also provides for society’s well-being is known as
a. the societal marketing concept.
b. the marketing concept.
c. consumerism.
d. social responsibility.
e. capitalism.
Answer:
A consideration set refers to
a. the group of brands that a consumer would consider acceptable from among all the
brands of which he or she is aware in the product class.
b. the group of generic brands that a consumer would reluctantly consider acceptable.
c. the group of brands of which a consumer is aware.
d. all possible competitive product substitutes that may satisfy a consumer’s needs
regardless of the product class.
e. those product alternatives a consumer has considered but deemed unacceptable.
Answer:
One disadvantage of using newspapers as an advertising medium is their
a. inability to cover local markets.
b. long lead time for placing an ad.
c. long life span.
d. relatively high cost.
e. competition for reader attention with other features in the newspaper.
Answer:
Costco requires customers to perform many shopping functions during the purchasing
process and all nonessential customer services have been eliminated. What level of
service does Costco offer?
a. limited-service
b. full-service
c. customized-service
d. self-service
e. restricted-service
Answer:
Selling objectives can be __________ and focus on dollar or unit sales volume, number
of new customers added, and profit. Alternatively, they can be __________ and
emphasize the number of sales calls and selling expenses.
a. input-related; output-related
b. output-related; input-related
c. financially-related; accounting-related
d. customer-related; salesperson-related
e. short-term; long-term
Answer:
In marketing, the term sampling refers to
a. testing the effectiveness of a marketing alternative in a supervised setting.
b. the collection of various secondary data through electronic or mechanical means.
c. allowing a subject to experience first-hand a new or updated product or service.
d. the process of selecting representative elements from a population and treating their
answers as typical of all those in whom they are interested.
e. testing members from all ages, both genders, and different levels of income and
education to guarantee reliable information.
Answer:
While Maytag appliances have the leading brand name, its sales are third in the
industry. One of the things the company has done to spur sales is to create a website
where potential customers can find the answers to the questions they ask during the
appliance purchase process. Although Maytag considered using a __________ strategy,
which directs customers to Maytag appliance stores it owns, the firm decided against it
and simply provides the names and addresses of all the retailers (Sears, Home Depot,
etc.) that carry Maytag appliances.
a. horizontal channel strategy
b. strategic channel alliance
c. dual distribution
d. cross-docking
e. disintermediation
Answer:
If Ben & Jerry’s sold a line of new “Occupy Ben & Jerry’s” T-shirts targeted to college
students in the U.S., it would be using a __________ strategy.
a. product development
b. market development
c. market penetration
d. diversification
e. market saturation
Answer:
Inseparability in services means consumers
a. see little variation from one service provider in an industry to another.
b. are unable to differentiate price from quality.
c. cannot evaluate a service until it is being used.
d. cannot separate the service from the deliverer of the service.
e. cannot separate themselves from the deliverer of the service.
Answer:
One of the eight primary MARKETING-RELATED reasons for new-product failure
is __________.
a. not listening to the voice of the consumer
b. incomplete market and product protocol
c. pushing a product too early into the market
d. the “NIH” problem
e. encountering groupthink in meetings
Answer:
The degree of service provided to the customer from self-, limited-, and full-service
retailers is referred to as __________.
a. involvement
b. level of service
c. service commitment
d. customer obligation
e. degree of commitment
Answer:
Which of the following statements concerning currency exchange rates is most
accurate?
a. Fluctuations in exchange rates among the world’s currencies are of critical
importance in global marketing.
b. Fluctuations in exchange rates among the world’s currencies are of minor importance
in global marketing.
c. Exchange rate fluctuations are relatively rare, but they usually have serious long-term
consequences.
d. Exchange rate fluctuations are almost nonexistent due in great part to the euro.
e. Exchange rate fluctuations may affect the financial sector but rarely reach the
consumer.
Answer:
The ratio of the firm’s sales revenues or unit sales to those of the industry (competitors
plus the firm itself) is referred to as
a. target return on sales.
b. industry profit.
c. unit volume.
d. market share.
e. profit.
Answer:
Business culture affects ethical conduct both in the exchange relationship between
sellers and buyers and in the
a. competitive behavior among sellers.
b. purchase behavior among buyers.
c. price, service, and product responsibility to the ultimate consumer.
d. accountability of buyers and sellers to federal and state regulators.
e. perception of ethical behavior as viewed by employers of business firms, not
nonprofit organizations.
Answer:
Professionally managed and centrally coordinated marketing channels designed to
achieve channel economies and maximum marketing impact are referred to as
__________.
a. integrated marketing systems
b. horizontal marketing systems
c. vertical marketing systems
d. functional marketing systems
e. cooperative marketing systems
Answer:
The three primary types of product advertisements are __________.
a. pioneering, institutional, and informational
b. humor, sex, and fear
c. pioneering, competitive, and reminder
d. competitive, subliminal, and institutional
e. cognitive, affective, and behavioral
Answer:
Edinberry’s, a restaurant located in south Texas, offers a variety of foods and
entertainment opportunities to its customers. The restaurant is famous for its fine steaks,
spicy chili, and outstanding customer service. In order to maintain the restaurant’s
reputation for putting its customers first, the marketing manager at Edinberry’s has
developed marketing activities that are directed at the waiters and waitresses. These
marketing activities are an example of __________ and are designed to help the
restaurant employees to maintain an exceptional customer experience.
a. internal marketing
b. external marketing
c. service marketing
d. stakeholder marketing
e. employee marketing
Answer:
Each day, in a third-class carriage of the express train that runs between Bombay and
Ahmadabad, plainly dressed couriers carry precious cargo: diamonds. Rough gems are
imported to Bombay from dealers in London, Antwerp, Tel Aviv, and New York.
Couriers then take these gems to cutting and polishing centers in Gujarat state and then
carry them back to Bombay to be reexported to the world. This system, based on trust,
secrecy, and skilled low-cost labor, has worked for half a century. It has helped make
India the world’s premier center for diamond cutting and polishing. Nine out of every
10 stones sold in the world pass through India, making diamonds that country’s largest
export. India’s ability to use its skilled labor as a resource is an example of what
Michael Porter would term
a. structural conditions.
b. demand conditions.
c. factor conditions.
d. competitive conditions.
e. sociocultural conditions.
Answer:
One disadvantage of using magazines as an advertising medium is
a. the inability to target specific audiences.
b. the short lead-time needed to place an ad.
c. the lack of noise associated with the use of magazines in the communication channel.
d. the infrequent nature of their publication.
e. there is little opportunity to tie in magazine advertisements with rest of an ad
campaign.
Answer:
Several television shopping programs are developing online platforms, which may
attract as many as 50 percent of all new customers, and interactive technology, that
allows viewers to place orders
a. without having to pay sales tax.
b. without having to pay for shipping or handling.
c. through online company websites.
d. with a “double your money back guarantee” if the items are not delivered within 24
hours.
e. with their remote control rather than the telephone.
Answer:
The fear of physical harm, the size of financial outlay required to buy the product,
product performance, and even the lack of approval of friends are all examples of
factors that contribute to
a. consumer angst.
b. cognitive dissonance.
c. purchase anxiety.
d. perceived risk.
e. consumer cynicism.
Answer:
Figure 1.
According to Figure 1. above, “E” represents which dimension of service quality?
a. reliability
b. empathy
c. tangibility (tangibles)
d. assurance
e. responsiveness
Answer:
Figure 1.: Question 9
Consider Figure 1.: Question 9 above, which is part of a Wendy’s survey that assessed
fast-food restaurant preferences among present and prospective consumers. Which of
the following statements MOST LIKELY explains why Question 9 was included in the
questionnaire?
a. Wendy’s wanted to know if children eat at its restaurants.
b. Wendy’s wanted to know why people have children under age 18 living at home.
c. Wendy’s can use these personal and household demographic characteristics to
segment the fast-food market.
d. Wendy’s wants to know how much people earn so it knows whether it should take
credit cards for purchases.
e. Wendy’s wanted to send these respondents coupons for the products that would
appeal to them most.
Answer:
Which of the following is an advantage of using magazines as an advertising medium?
a. a magazine ad has a long life
b. it takes a relatively short time to place the ad
c. the cost of placing a magazine ad is extremely low
d. it is easy to translate consumer interests into a successful publication
e. there is little need or benefit to incorporate four-color graphics
Answer:
A form of low-risk and capital-free entry into international markets that includes local
manufacturing and local assembly is referred to as
a. indirect exporting.
b. direct ownership.
c. joint ventures.
d. licensing.
e. direct exporting.
Answer:
Like personal selling, __________ often consists of interactive communication.
a. direct marketing
b. advertising
c. a sales promotion
d. publicity
e. a public service announcement
Answer:
Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended
the season with $100 in inventory. Calculate his stockturn rate for the summer.
a. 1.
b. 1.
c. 1.5
d. 3.0
e. 24.0
Answer:
Provide concrete examples for the four classifications marketing decisions according to
ethical and legal relationships.
Answer:
What are the four guidelines proposed by Buddy Media to engage fans on Facebook?
Answer:
Identify the six prelaunch issues that 3M and David Windorski needed to address before
the Post-itFlag Highlighter could be manufactured and marketed.
Answer:
Explain what is meant by the concept of marketing utility. Identify and describe the four
utilities created by marketing.
Answer:
Identify the three different approaches used to schedule advertising.
Answer:
Briefly describe the three ways retail outlets can be classified.
Answer:
Identify and describe the four factors in a SWOT analysis and give examples for Ben &
Jerry’s Homemade Ice Cream that help it identify the critical strategy-related factors
that could impact the firm.
Answer:
Identify and describe the two types of personal moral philosophy.
Answer:
What is environmental scanning? Using the five environmental forces that affect
organizations, describe considerations for conducting environmental scanning for a new
model of automobile.
Answer:
List and briefly describe the key elements of the communication process.
Answer:
What are the six steps for developing an advertising program?
Answer:
The movie A Beautiful Mind opened originally in a select number of theaters before
opening nationwide. After its theater run, it was shown on pay-per-view channels and
then on premium movie channels. The movie then was made widely available in video
stores and Netflix on DVD. What type(s) of consumer product is this movie? Explain
your answer.
Answer:
Ruth, who has no children, wants to buy a special baby gift for her best friend’s baby
shower, which is this evening. Since she won”t have any time between work and the
baby shower, she must go today during her lunch break. She is planning on taking her
sister with her to help make the selection. Ruth knows she will be ready to buy every
baby-oriented product she sees because she wishes that she too was having a baby.
Identify each of the situational influences that are described above. Which situational
influence was not described?
Answer:
Apple, a multimarket, multiproduct firm, manufactures and markets iMacs, iPods,
iPhones, and iPads as a portfolio of businesses. At what organizational level does Apple
set the strategic direction for these businesses to create customer value?
Answer:
How did President John F. Kennedy change the concept of American business culture
away from caveat emptor in the 1960s?
Answer: