Which method of entering the global marketplace would be LEAST risky?
a. Exporting
b. Licensing
c. Contract manufacturing
d. Joint ventures
e. Direct investment
Answer:
The ______ is the channel used to convey a message to a target market.
a. medium
b. product network
c. attribute
d. appeal
e. executor
Answer:
During the hot summer months, or the week before a new class starts if there is still
space available, the Nick Price golf school in Orlando, Florida, offers a 25 percent
reduction to get golfers during the off-season or those making a last-minute decision.
This is an example of pricing strategy used as a(n):
a. distribution tool.
b. price enhancer.
c. product strategy.
d. direct sales tool.
e. promotion strategy.
Answer:
ChoiceHomes,Inc.
Choice Homes, Inc., based in Texas, built its reputation by building high-quality new
homes, often at prices less than “used” ones. Choice Homes used mass purchasing
power, innovative hightech communications among employees to coordinate the
building process, and other entrepreneurial strategies to hold costs down. Its homes are
primarily targeted at first-time homeowners-to-be in an effort to get people out of
apartments so they can experience the “American Dream” of home ownership for the
same price as rent. Choice Homes later developed the “Choice Classic” brand name for
higherend homes targeted at wealthier dualincome couples. The Choice Classic name
was designed to capitalize on the reputation of Choice Homes, especially for current
Choice home owners who are ready to “move up” to a larger home. Recently, Choice
Homes started a third line of homes called “Reflections,” which are expensive,
custom-designed homes located in exclusive, prestigious neighborhoods.
Refer to Choice Homes, Inc. Kurt McKinney has just received a large inheritance and
wants to have his “dream” home built. He knows exactly the architectural design he
wants. He wants a particular Reflections home. The type of consumer product he
wishes to buy is best classified as a(n):
a. shopping product.
b. convenience product.
c. nondurable good.
d. specialty product.
e. unsought product.
Answer:
When a company retains an additional 5 percent of its customers each year, profits will
increase by as much as _____.
a. 5 percent
b. 15 percent
c. 25 percent
d. 35 percent
e. 45 percent
Answer:
_____ is the process of anticipating events and determining strategies to achieve
organizational objectives.
a. Planning
b. Portfolio evaluation
c. Forecasting
d. Implementation
e. Evaluation
Answer:
The ability of an advertising medium to reach a precisely defined market is called:
a. audience selectivity
b. market singularity
c. geographic selectivity
d. noise filtering ability
e. life span
Answer:
All of the following would be a target for a trade sales promotion offered by
Rubbermaid, a manufacturer of storage and organization products, EXCEPT:
a. a retailer called The Container Store.
b. a kitchen department in a large discount store.
c. a wholesaler of plastic storage bins.
d. a Rubbermaid distributor.
e. a consumer who needs to organize her college dorm room.
Answer:
Demand for which of the following products or services is most likely inelastic?
a. Fishing boats
b. Wheat bread
c. Pedicures
d. Filet mignon steaks
e. Digital cameras
Answer:
Manufacturers who require suppliers to meet certain environmental standards are
implementing sustainable supply chain management.
a. True
b. False
Answer:
All of the following statements about how adopters participate in the diffusion process
are true EXCEPT:
a. early adopters may also be opinion leaders
b. laggards are the last consumers to adopt a new product
c. there are three categories of consumers who will eventually adopt an innovation
d. the dominant characteristic of members of the late majority is skepticism
e. innovators are the first to purchase a new product
Answer:
Building value-added services that are not readily available from other firms into the
delivery system defines relationship marketing based on the creation of:
a. financial bonds
b. social bonds
c. service delivery paradigms
d. personal communication channels
e. structural bonds
Answer:
Strategic plans require:
a. long-term resource commitments
b. a change in organizational structure
c. the addition of new personnel
d. new product development
e. changes in prices
Answer:
A(n) ____ typically entails showing members of the product’s target market advertising
and other promotional materials for several products, including the test product. These
people are then taken to a mock or real store, where their purchases are recorded.
a. adoption-rate test
b. real test market
c. concept test
d. simulated (laboratory) market test
e. consumer juried test
Answer:
Informative promotion is generally used:
a. when memory stimulus is needed.
b. when the brand name is well-known to consumers.
c. during the early stages of the product life cycle.
d. during an attempt to gain the immediate action of a consumer.
e. when advertising a simple, nontechnical, mature product.
Answer:
_____ refers to the moral principles or values that generally govern the conduct of an
individual or a group.
a. Righteousness
b. Social consensus
c. Sustainability
d. Virtue
e. Ethics
Answer:
The U.S. Army created a video game called America’sArmyto boost its recruiting
efforts. The game is an example of:
a. an interconnect.
b. a videomercial.
c. advergaming.
d. a relationship tool.
e. an infomercial.
Answer:
The amount of time between order placement, receipt of the customer’s payment, and
order shipment is known as the:
a. 3PL cycle
b. product life cycle
c. purchase cycle
d. order-to-cash cycle
e. float
Answer:
Rose is shopping for a new camera. She has set a maximum of $250 as the highest price
she will pay, so she doesn”t even bother considering cameras that cost more than that.
Rose is narrowing the number of available choices by using a:
a. cost margin
b. product attribute
c. cutoff
d. boundary
e. knockoff
Answer:
Walmart
Walmart, the world’s largest retailer by revenue, announced that it will get back to its
founder’s roots by initiating more price cuts. Critics claimed that the giant was getting
away from its original focus because it posted relatively high gross profit margins. CEO
Mike Duke assuaged critics by saying Walmart’s $400 billion in sales will become even
larger because the price cuts will attract more customers and it will lower its costs of
goods sold.
Refer to Walmart. Most Walmart stores are not located in shopping centers but rather
are buildings all by themselves. This type of location is referred to as a:
a. primary outlet.
b. freestanding store.
c. pop-up store.
d. single-unit retailer.
e. strip store.
Answer:
KitKat
The popular Kit Kat chocolate bar was created by Rowntree’s, a confectionary company
in the United Kingdom, in 1935. By the 1940s, Rowntree’s was exporting Kit Kats to
Australia, New Zealand, South Africa, and Canada. The brand further expanded in the
1970s when Rowntree created a new distribution factory in Germany to meet European
demand, and established agreements to distribute the brand in the USA and Japan,
through the Hershey and Fujiya companies respectively. In June 1988, Nestl acquired
Kit Kat through the purchase of Rowntree’s, giving Nestl global control over the
brandexcept in North America, where it is made under license by the Hershey
Company. Variants in the traditional chocolate bar began to appear in the mid-1990s
and have continued to develop ever since. Kit Kat Japan, in particular, has many unique
flavors such as mango-flavored, cucumber, and wasabi Kit Kats. Today, Nestl produces
Kit Kat bars in 21 countries and has expanded its marketplace in Japan, Russia, Turkey,
and South America, in addition to markets throughout Europe.
Refer to Kit Kat. Nestl has utilized a global vision in marketing Kit Kat bars throughout
the world. The company realizes different countries require different strategies but that
effective global marketing is a key to success. Nestl is practicing:
a. global marketing.
b. standard international marketing.
c. global marketing standardization.
d. the foreign vision.
e. international selling schemes.
Answer:
Low response rate is a problem commonly associated with:
a. exit interviews.
b. executive interviews.
c. mail surveys.
d. mall intercept interviews.
e. in-home interviews.
Answer:
The dimensions of quality that are important to consumers include:
a. versatility.
b. serviceability.
c. performance.
d. ease of use.
e. all of these choices.
Answer:
When the Sara Lee Bakery Group introduced Iron Kids Crustless bread (to save
mothers the time and effort of slicing the crusts off sandwiches), it was using:
a. PRIZM segmentation
b. geodemographic segmentation
c. niche marketing strategy execution
d. product differentiation
e. a target market chart
Answer:
When mechanical gas pumps first appeared in the United States in the 1930s, their
spinning dials couldn”t register sales beyond $99.99. Today, some stations still use the
retro pumps, but the limited dials cannot register the sales of higher-priced gas, which
often mount about $100 for SUVs. The pumps can be modernized for about $650, but
the company that provides this service has a huge backlog. This is an example of how
_______ factors affect small convenience stores and service stations.
a. technological and cultural
b. competitive and natural
c. technological and economic
d. cultural and economic
e. demographic and marketing mi
Answer:
New brands with a small market shares tend to spend proportionately more for
advertising and sales promotion than do those with large market shares.
a. True
b. False
Answer:
Product differentiation is a positioning strategy.
a. True
b. False
Answer:
A(n) ____ strategy entails selecting one segment of a market to target and focuses on
understanding the needs, motives, and satisfactions of the members of that segment, as
well as on developing a highly specialized marketing mix.
a. universal product
b. undifferentiated targeting
c. concentrated targeting
d. market development
e. product development
Answer:
What is the American Marketing Association’s (AMA) definition of marketing and what
does marketing entail?
Answer:
Zappos is an online shoe and apparel retailer that promotes the highest quality of
customer service by maintaining the importance of each _____, the point at which
customer and store personnel exchange information and develop learning relationships.
a. moment of truth
b. intervention
c. data capture
d. response situation
e. interaction
Answer:
GoingtotheDogs
Demand for pet services is greatly increasing across the United States. In fact,
Americans will spend nearly $44 billion dollars on their pets this year. Many American
dog owners are seeking out “doggy day cares” that are more like a resort or spa than an
ordinary kennel for their canine companion. Day care services for dogs now include toy
rooms, outside play areas, doggie massages, treadmills, swimming pools, and cushy
beds for nap time. Pet owners can watch their pets via a webcam, and some doggy day
cares have a phone where owners can talk to their dogs when they feel their pets need to
hear their voices. Rates vary from $20 to $45 a day per pet, depending on the amenities
that the pet owner chooses.
Refer to Going to the Dogs. Central Bark Doggie Day Care currently has 31 locations,
with a new Gainesville, Florida, location coming soon. With the opening of competition
in the form of Camp Bow Wow and others, it appears that the dog day care product is
moving into the stage of the product life cycle.
a. commercialization
b. introductory
c. growth
d. maturity
e. decline
Answer:
Which of the following pricing methods can be used to build market share during a
recession?
a. Price lining
b. Resale price maintenance
c. Psychological pricing
d. Bundling
e. Variable pricing
Answer:
When a channel intermediary is compensated for the ordinary services and tasks
performed within the channel of distribution, the compensation usually comes in the
form of a discount from base price. This discount is called a:
a. seasonal discount.
b. promotional allowance.
c. cumulative or noncumulative quantity discount.
d. functional (or trade) discount.
e. rebate or refund.
Answer:
Co-branded credit cards are used in conjunction with:
a. self-perpetuating premiums.
b. loyalty marketing programs.
c. trade consumer promotions.
d. consumer discount programs.
e. functional consumer discounts.
Answer: