Which of the following statements regarding corporate vertical marketing systems is
most accurate?
a. Corporate vertical marketing systems can use either forward integration or backward
integration but not both.
b. Corporate vertical marketing systems increase distribution costs.
c. Corporate vertical marketing systems increase investment but decrease fixed costs.
d. Corporate vertical marketing systems are only effective with low-end consumer
products.
e. Corporate vertical marketing systems combine successive stages of production and
distribution under a single ownership.
Answer:
Smart systems are called ‘smart” because
a. a user needs to be intelligent to use them efficiently and effectively.
b. users are primarily located at colleges and universities.
c. in this case ‘smart” means fashionable or cool.
d. users have to be smart to excel at playing games such as Angry Birds on
smartphones.
e. they use various sensing features to facilitate more dynamic interactions with
consumers.
Answer:
Volvo’s YCC opens its doors with a press of a button on the car key, will parallel park
the car with a self-steering system, and has customized seat covers that can be removed
and washed. Many of these new product features were added because Volvo sought
ideas from
a. seasoned mechanics.
b. women employees.
c. stunt and professional race car drivers.
d. loyal Volvo customers.
e. drivers of other luxury automobiles.
Answer:
All of the following are departments in a typical organization EXCEPT:
a. finance.
b. manufacturing.
c. information systems.
d. human resources.
e. suppliers.
Answer:
Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox
used a(n) __________ pricing strategy to help recover its research and development
costs.
a. penetration
b. cost-plus
c. target ROI
d. above-market
e. skimming
Answer:
When MSN Hotmail includes its tagline, “Get your Private, Free E-mail from MSN
Hotmail,” on each of the millions of e-mails it processes daily, it is using __________.
a. opt-out marketing
b. viral marketing
c. customerization
d. niche marketing
e. buzz marketing
Answer:
Over a period of several decades, coffee consumption declined from 75 percent of the
adult population in 1962 to 49 percent in 2004. Then, it increased to 56 percent in 2010.
A firm with a good marketing orientation would have
a. found a less volatile product to sell.
b. invested more money into market research.
c. changed to a new promotional firm.
d. explored the reasons behind these changes.
e. demoted coffee from being a ‘star” to a “dog.”
Answer:
Errors in communication can occur in several ways: (1) the source may not adequately
transform the abstract idea into an effective set of symbols; (2) a properly encoded
message may be sent through the wrong channel and never make it to the receiver; (3)
the receiver may not properly transform the set of symbols into the correct abstract
idea; or (4) __________.
a. the communications channel is not properly developed
b. there is no interest on the part of the receiver
c. feedback may be so delayed or distorted that it is of no use to the sender
d. the message is considered too ordinary because there is too much field of experience
e. the encoder is inexperienced, resulting in too much noise
Answer:
Federal regulations contain provisions that allow consumers to avoid being called at
any time through the __________, and fines are imposed for violations.
a. Do Not Disturb Registry
b. Do Not Call Registry
c. Do Not Interrupt Registry
d. Do Not Infringe Registry
e. Do Not Agitate Registry
Answer:
When the charitable contributions of a firm are tied directly to the customer revenues
produced through the promotion of one of its products, this marketing practice is
referred to as
a. marketing philanthropy.
b. marketing allegiance.
c. relationship marketing.
d. transactional marketing.
e. cause marketing.
Answer:
The acronym “EDLP” stands for __________.
a. everyday lo-hi pricing.
b. extended discounts for loss-leader products.
c. everyday low pricing.
d. either free delivery or lower prices.
e. expired discounts in lieu of lower pricing.
Answer:
Enterprise car rental agency differentiates itself from other similar agencies by
providing a delivery service. This delivery service is particularly valuable to someone
who has been left stranded without transportation. By making it easy to rent temporary
transportation, Enterprise is emphasizing which utility?
a. form
b. product
c. service
d. possession
e. convenience
Answer:
In conference selling, __________.
a. buyers and sellers meet through a technology-based forum (telephone or video
conference call such as WebEx, etc.) because person-to-person meetings are too
expensive due to the cost of air travel
b. the sale has already been finalized but the buyer and seller meet to discuss delivery
details
c. a salesperson and other company resource people meet with buyers to discuss
problems and opportunities
d. a company team conducts an educational program for a customer’s technical staff,
describing state-of-the-art developments
e. a form of mass selling occurs via electronic marketplaces such as eBay, Facebook,
and Salesforce.com
Answer:
The three main benefits packaging provides to manufacturers, retailers, and consumers
are communication benefits, perceptual benefits, and __________ benefits.
a. personal
b. functional
c. financial
d. societal
e. aesthetic
Answer:
Figure 1.
The consumers represented by “A” in Figure 1. above are called __________.
a. innovators
b. late majority
c. early majority
d. early adopters
e. laggards
Answer:
As the brand manager for Red Bull, what information does the Price Premium
Marketing Dashboard above give you?
a. Red Bull has a price premium relative to Monster.
b. Rockstar has a price premium relative to Monster.
c. Red Bull engaged in price discounting relative to both Monster and Rockstar from
2009 to 2010.
d. Rockstar sold more product than Monster in 2010.
e. In terms of dollar market share, Red Bull has a lower share than the “Other Brands”
category.
Answer:
An ad for Allegra allergy medicine highlights the competitive advantage of Allegra over
its primary competitors Benadryl, Tylenol, and Chlor-Trimeton. This is ad is an
example of __________ advertising.
a. reinforcement
b. persuasive
c. comparative
d. informative
e. reminder
Answer:
Choice, a reason customers shop and buy online, has two dimensions. They are
a. availability and price
b. speed and availability
c. product or service selection and speed
d. choice assistance and speed
e. product or service selection and choice assistance
Answer:
The proper blend of elements in the promotional mix depends on the type of product.
The three specific characteristics to be considered are complexity, risk, and
__________.
a. size
b. durability
c. accessibility
d. ancillary services
e. acceptability
Answer:
Tiffany & Company knows that Japanese are superstitious about the number 4. As a
result, Tiffany sells its fine glassware and china in sets of five, not four, in Japan.
Tiffany has used its knowledge of __________ to avoid connecting its products with the
number 4.
a. trademarks
b. visual icons
c. cultural symbols
d. brand names
e. ethnic emblems
Answer:
The European Union passed a law called the E-Privacy Directive to
a. provide explicit laws for website owners.
b. protect intellectual property.
c. increase credit availability.
d. reduce the cost of postage.
e. allow more consumers access to the Internet.
Answer:
Several market research companies pay households and businesses to record all their
purchases using a paper or electronic diary, which allows for an economical way to
collect consistent data over time. These data are referred to as __________.
a. sponsored data
b. data reciprocity
c. syndicated sampling
d. syndicated panel data
e. data journaling
Answer:
When Hunter went to the hardware store looking for gloves to wear while refinishing a
table, he bought one pair because that was all he needed. But when the hardware store
purchased the gloves, it purchased a case containing 100 pairs of identical gloves.
Which logistical function did the hardware store perform for Hunter and its other
customers?
a. marketing
b. buying
c. sorting
d. assorting
e. risk taking
Answer:
Sophisticated firms have learned the marketing lesson that
a. it is a lot easier to find new customers than to retain existing ones.
b. according to research, it is equally costly to acquire new customers as it is to retain
existing ones.
c. existing customers do not spend as much as new customers since that latter like the
old products rather than the new ones new customers like.
d. the buying experience, customer satisfaction, and retention can increase firm profits.
e. unless a marketing promotion to retain customer loyalty can increase market share by
at least 5 percent, it is not worth the expenditure.
Answer:
Which of the following characterizes organizational buyer-seller relationships?
a. Purchases are often made after lengthy or complex negotiations.
b. Purchases are usually of small dollar values.
c. Short-term contracts are often prevalent.
d. Reciprocal arrangements never exist.
e. Delivery schedules are less important than production capacity.
Answer:
The Journal of Marketing Research and the Journal of Marketing provide
a. up-to-date tables for the latest data on consumer sales, listed by industry.
b. summaries of research methods and techniques valuable in addressing marketing
problems.
c. the latest data on marketing expenditures based on consumer demographics.
d. postings of professional marketing opportunities at universities and colleges.
e. an in-depth list of marketing positions and opportunities at major corporations.
Answer:
One of Vivian Callaway’s problems in finding a new dessert product was that
consumers often say one thing in a market research study, then behave differently in an
actual supermarket setting. To overcome this problem, Callaway and her team did a lot
of “iterative experimentation” in the marketplace. This strategy involved
a. interviewing only those customers who were leaving the supermarket with a RTE
dessert product.
b. interviewing only those customers who were leaving the supermarket without an
RTE dessert.
c. conducting market research on desserts in shopping malls so customers didn’t know
which dessert was being studied, thereby reducing bias.
d. offering customers two samples of the identical product to cull out respondents who
couldn”t give an accurate assessment.
e. putting a prototype product in the store, making changes based upon consumer
responses, and then repeating the process.
Answer:
Which of the following statements regarding cost-oriented approaches is most accurate?
a. These methods focus on the demand side of the pricing problem.
b. These methods focus on production and marketing expenses.
c. Target return on investment is an example of a cost-oriented method.
d. Experience curve pricing is simple to use because costs predictably decrease by 25
percent with each doubling of production.
e. Cost-oriented approaches are subcategories of competition-oriented methods.
Answer:
Figure 1.
According to the service continuum shown in Figure 1. above, which of the following
offerings has the highest level of intangibility?
a. tailored suit
b. advertising agency
c. tutoring service
d. fast-food restaurant
e. salt
Answer:
All of the following are distribution channels General Mills uses to sell its Warm
Delights Minis EXCEPT:
a. drug stores/pharmacies.
b. mass merchandisers.
c. vending machines.
d. warehouse/club stores.
e. convenience stores.
Answer:
Two commonly used techniques to aid mangers with important decisions for setting a
direction and allocating resources include __________ and __________ analysis
strategies.
a. micromarketing; macromarketing
b. business portfolio; diversification
c. investment; divestment
d. dashboards; metrics
e. subjective; objective
Answer:
Identify the three major tasks involved in implementing a sales plan.
Answer:
What is the purpose of the evaluation phase of the strategic marketing process? How is
it accomplished?
Answer:
Explain what is meant by the concept of the “80/20 rule.”
Answer:
In 25 words of less, write a mission statement for the educational institution you are
currently attending.
Answer:
What is a bidder’s list?
Answer:
There are only three major recording labels in the worldSony Music Entertainment,
Time-Warner’s Warner Music Group, and GE’s Universal Music Group. They are
responsible for the vast majority of music recordings that are made. Harry says that
these three music companies operate as an oligopoly. Maryanne says that they operate
as monopolistic competition. Explain how each came to his or her conclusion. Who is
correct?
Answer:
What is the difference between micromarketing and macromarketing?
Answer:
Explain the dimensions of the retail positioning matrix and give an example of a store
that would be located in each quadrant of the matrix.
Answer:
Explain why NOT all products can use test markets.
Answer:
Define green marketing and provide an example of it.
Answer:
What are the advantages and disadvantages of the product manager system?
Answer:
How have businesses responded to the changing roles of men and women?
Answer:
Thirsty Dog! Thirsty Cat! Ad
The Thirsty Dog! & Thirsty Cat! ad above shows an example of a product that failed in
the marketplace for a variety of reasons. List and describe the eight marketing-related
factors that often contribute to new-product failures and identify the reason(s) for this
“unique” marketing-related product failure.
Answer:
You will be graduating soon and have been offered “the job of your dreams.” The new
position, however, requires some traveling so you will need a car. You currently do not
have one. What decision process will you go through to purchase an automobile?
Answer:
Explain the difference between a markup, an original markup, and a maintained
markup.
Answer:
The Boston Consulting Group’s business portfolio analysis model can be used to
analyze a firm’s strategic business units. What are the strengths and weakness of this
model?
Answer:
Although firms may differ in the specifics of how salespeople are managed, the sales
management process has many similarities across firms. Briefly describe the three
interrelated functions of the sales management process.
Answer: