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A keiretsuis a(n):
a. type of strategic alliance commonly found in Japan.
b. method of business e-commerce found in Asia.
c. Internet site that offers its customers access to various languages that they can use to
conduct their business.
d. form of relationship marketing that is illegal in the United States.
e. Bribe.
Answer:
When price decreases and total revenue falls, demand is:
a. elastic.
b. inelastic.
c. absolute.
d. unitary.
e. stable.
Answer:
Every day around lunchtime, Rascal's Deli sends text messages advertising daily
specials to customers on their GPS-enabled mobile phones. This is an example of:
a. recency planning.
b. guerrilla marketing.
c. pioneering advertising.
d. executional style.
e. a seasonal media schedule.
Answer:
Colorific recently began competing with Crayola coloring products. At the beginning of
the school year, the ______ for Colorific products consists of back-to-school shoppers.
a. target market
b. buying center
c. mass market
d. consumer sample
e. aggregated demography
Answer:
DeltaFaucet Company
Masco is the name of a well-recognized company in the construction industry. It
produces cabinetry, furniture, lighting, and plumbing fixtures for the upper-end
homeowner and builder. One of the divisions of Masco is the Delta Faucet Company,
which is the leader in the faucet industry. Delta was founded in 1955. Over the decades,
it has developed a legacy based on well-crafted, high-quality products. Since the 1970s,
Delta has focused its energies on building loyalty with the builder marketplace.
Research in 2002 showed that while builders respected the Delta faucet for its quality,
durability, and dependability, household consumers were not enamored with Delta
products. Due to the number of new magazines and television programs devoted to
home style, homeowners wanted faucets that were chic and stylish. This was not the
image of the Delta faucet. To change its image, Delta began a marketing program in
which it committed itself to developing new products to appeal to homeowners. It
adopted a new slogan"""Beautifully Engineered."
Refer to Delta Faucet Company. The marketing program that Delta designed to develop
new products to appeal to homeowners is an example of:
a. strategic planning
b. a mission statement
c. mass marketing
d. production-oriented marketing
e. tactical planning
Answer:
While some countries have elements of both capitalism and socialism, most nations are
at one political extreme or the other.
a. True
b. False
Answer:
Which of the following statements about American teenagers is correct?
a. They spend about 40 hours per week tuned in electronically.
b. About 25 percent go to the mall at least once a week.
c. More than 50 percent have a blog.
d. They prefer online friends to "real" friends.
e. Most would rather shop in a store than online.
Answer:
In Miami, several radio stations broadcast in Spanish and play Latin music for the
Hispanic people living in South Florida. The radio stations are using
______segmentation.
a. usage rate
b. ethnic
c. socioeconomic
d. geographic
e. gender
Answer:
A company adhering to the marketing concept will likely take which of the following
steps if it learned that its customers were dissatisfied with its product?
a. Hire more salespeople
b. Decrease its organizational overhead
c. Increase its advertising to underserved markets
d. Increase the number of outlets in which the product is sold
e. Conduct research to determine if its customers' needs have changed
Answer:
Novartis
Novartis, a Swiss drug maker, is planning to purchase a majority stake in Zhejiang
Tianyuan Bio-Pharmaceutical Company, a Chinese vaccine maker. Novartis has agreed
to pay $125 million for the company, which holds a 3 percent share of China's $1
billion vaccines market. The market for vaccines is growing 20 percent or more in the
developing nations of Asia, Africa, and Australasia. In the past, vaccine use has been
limited to basic shots against diseases such as polio, tuberculosis, and measles, but as
the economies of these countries grow, government and private healthcare spending
focuses on preventing diseases such as hepatitis B, cholera and rotavirus, tetanus, and
others. Some critics are against the acquisition, claiming that prices will increase.
Novartis claims it is not interested in raising prices but rather in expanding Tianyuan's
product offerings.
Refer to Novartis. If Novartis goes through with the purchase of Tianyuan, it will
become a subgroup of its overall pharmaceutical business and organization. Tianyuan
will then be considered a of Novartis.
a. stock-keeping unit (SKU)
b. portfolio element
c. strategic business unit (SBU)
d. market segment
e. business segment
Answer:
A period of economic activity characterized by negative growth, which reduces demand
for goods and services, is called a(n):
a. stagnation
b. inflation
c. recession
d. price escalation
e. parity
Answer:
____, buying, selling, marketing, collaborating with partners, and servicing customers
electronically using the Internet, has had a significant impact on personal selling.
a. I-marketing
b. M-commerce
c. E-business
d. C-focusing
e. None of these choices
Answer:
The Barter Company, (TBC), located in Kennesaw, Georgia, acts as a broker between
companies that want to trade products or services. Companies must be a TBC member,
and there is a one-time fee to join. TBC charges a brokerage fee on each transaction
facilitated. This company is an example of a(n):
a. service integrator.
b. job source.
c. business service.
d. extended service.
e. component service.
Answer:
____ distribution is achieved by screening dealers to eliminate all but a few in any
single geographic area. Shopping goods and some specialty products that consumers are
willing to search for are sold this way.
a. Intensive
b. Selective
c. Exclusive
d. Dual
e. Controlled
Answer:
Apple, Inc. wants a faster microprocessor for its new Macs. Apple most likely engaged
in a:
a. value engineering task.
b. modified rebuy.
c. straight rebuy.
d. new process.
e. new buy.
Answer:
Slatescape sells crushed slate to be used as a decorative, permanent mulch to keep
weeds out of flower beds. Initially, Slatescape was marketed heavily to home owners,
but after years of radio and television advertising, Slatescape has decided to put a
majority of its promotion budget into personal selling and sales promotion to lawn and
garden supply stores and large discount stores such as Walmart. This new strategy is a
____ strategy.
a. kinetic
b. push
c. pull
d. foot-in-the-door
e. reinforcement
Answer:
Which of the following statements about online gaming is CORRECT?
a. Games such as Angry Birds and CityVille have proven unattractive to marketers
because it takes so long to play them.
b. Almost 90 percent of people play games within social networking sites or on mobile
devices.
c. The typical online gamer is a 43-year-old woman with a full time job and college
education.
d. Social gaming is one of the few areas of social media that is notgrowing.
e. The demographic of gamers who favor mobile devices tends to skew older than those
who play on traditional PCs.
Answer:
Rexona, marketed by Unilever (a Dutch company), is the world's number one deodorant
brand. The brand is a leader in Europe, South America, Asia, Africa, and the Middle
East. Rexona is an example of a:
a. master brand.
b. global brand.
c. cannibalized brand.
d. standard brand.
e. family brand.
Answer:
The owner of specialty kitchen retail store wants to determine what price she should put
on a set of mixing bowls.
They cost her $7. She desires a markup of 30 percent based on selling price. Which of
the following is closest to the price she should charge her customers?
a. $19
b. $12
c. $15
d. $10
e. $18
Answer:
As a manufacturer of jams and jellies, Smucker's sells a highly standardized product to
consumers all over the United States. You would expect Smucker's to rely on ____ to
promote its product.
a. public relations
b. personal selling
c. advertising and sales promotion
d. publicity and direct marketing
e. product innovation
Answer:
If DuPont runs advertisements encouraging people to buy clothing that contains Lycra
(a DuPont product), this would be an attempt to influence secondary demand.
a. True
b. False
Answer:
Product positioning is the process of:
a. finding the correct location for retail outlets to sell a product category.
b. finding the right channel of distribution for a product.
c. creating the desired image of the firm's product.
d. competing with competitors' products in the retailers' stores for the best position on
the shelf.
e. pricing the product to be at a competitive level with other brands on the market.
Answer:
Businesses that buy finished goods and sell them for a profit are called:
a. inventory carriers.
b. producers.
c. distribution networks.
d. resellers.
e. business facilitators.
Answer:
At the end of the summer, the Bloomin" Garden Center reduced the price on all of its
plants, fertilizer, and potting soil by 50 percent in order to liquidate this inventory. What
type of pricing strategy is being used in this example?
a. Supply oriented
b. Sales maximization
c. Target return on investment
d. Satisfactory profit
e. Profit maximization
Answer:
GrizzlyWatching
Have you ever wanted to spend your vacation up close and personal with a grizzly
bear? Great Bear Nature Tours is one of the many lodges that provide such a service.
Great Bear, located in British Columbia, is actually a lodge built on a floating barge.
The lodge can handle up to ten guests in what the WallStreet Journalcalls rustic but
upscale accommodations in double rooms that begin at a rate of $1,418 per night,
including bear-watching tours. Although bear hunting still brings tourists to Canada,
bear watching is a growing attraction. On a bear-watching tour, the guide, who is often
unarmed, will take you close enough to get a good view of a grizzly in the wild. In fact,
one of the favorite tours allows you to watch bears swipe at salmon as they swim
upstream to spawning grounds. While bear watching sounds dangerous, bear attacks are
not common. However, just to be careful, many tour guides carry pepper spray. Tour
guides say they are able to keep tour members safe by watching the bears and reading
their body movements.
Refer to Grizzly Watching. If Great Bear Nature Tours rated and rewarded its tour
guides based on the number of bears seen by guests, the tour guides might be willing to
accept more risk in seeking out the bears than guests would really want. This could
result in which service quality gap?
a. A gap between what customers want and what management thinks customers want
b. A gap between what management thinks customers want and the quality specification
that management develops to provide the service
c. A gap between the service quality specifications and the service that is actually
provided
d. A gap between what the company provides and what the customer is told it provides
e. A gap between the service that customers receive and the service they want
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. One challenge to adoption of the dog day care is the fact
that dog owners are used to paying a somewhat minimal fee for boarding their dogs in a
kennel, while a day care center may demand many times as much for the same time
span. This suggests that the diffusion.
a. compatibility
b. complexity
of the new product may affect the rate of
c. relative advantage
d. observability
e. trialability
Answer:
A competitive advantage is some unique aspect of a firm's offering, or of the firm itself,
that causes target
customers to patronize the firm rather than its competition.
a. True
b. False
Answer:
Pepisco and Waste Management have developed a plan to improve the reverse supply
chain for individual beverage bottles not most commonly thrown in trash cans and not
recycled. Together Pepsico and Waste Management have plans to deploy thousands of
"Dream Machines" in both permanent and temporary locations that will take in recycled
bottles and provide rewards to consumers who participate. These companies are
practicing:
a. sustainable supply chain management
b. contract logistics
c. intermediary distribution
d. eco-marketing
e. environmental mediation
Answer:
Sebastian got a haircut this afternoon. His haircut cannot be called a product, however,
because it is a service, not a tangible good.
a. True
b. False
Answer:
Biopure Corp. is developing a human blood substitute called Hemopure. Unlike
donated human blood that needs to be refrigerated and expires after a short period of
time, Hemopure is shelf stable and can be stored for two years or more. Also, it does
not need to be matched to a person's blood type. These factors make it wellsuited
for trauma cases where blood must be transfused at an accident site or on the battlefield.
Which product characteristic influencing the rate of adoption does this represent?
a. Complexity
b. Compatibility
c. Relative advantage
d. Observability
e. Trialability
Answer:
A ____ specializes in interviewing respondents on a subcontracted basis. It may also
provide focus group facilities, mall intercept locations, test product storage, and kitchen
facilities to prepare test food products.
a. research diagnostic firm
b. single-source researcher
c. marketing research aggregator
d. cross-tabulation company
e. field service firm
Answer:
Define advertisingand explain why new brands with small market share tend to spend
proportionately more for advertising and sales promotion than those with a large market
share.
Answer:
Define cognitivedissonanceand describe how can consumers and marketers can reduce
it.
Answer:
Identify and discuss five ideas that marketing managers should consider when setting
social media objectives.
Answer:
Briefly define licensing and joint ventures as means of engaging in global marketing.
Be sure to demonstrate both the similarities of the two processes and how they differ.
Answer:
Use the chart to indicate the relative amount of time spent in each of the key steps of
the selling process for both traditional selling and relationship/consultative selling. The
first step has been completed for you.
Answer:
Oakley Grove and Abraham Enterprises both market oranges and grapefruits. Oakley
Grove has been in business for almost 40 years, while Abraham Enterprises has only
been selling citrus fruit for about 18 months. Abraham Enterprises would like to take
business away from Oakley Grove, and Oakley Grove wants to retain all of its
customers. Explain which sales promotions each should emphasize in its marketing
mix.
Answer:
Explain how researchers conduct an experiment and discuss the characteristic of a good
experiment.
Answer:
What is a nonprofit organization? Discuss the marketing activities performed by
nonprofit organizations.
Answer:
What is customer value? What are the six ways marketers can make sure customers
perceive their companies/products as sources of value?
Answer:
What is automated e-mail follow-up marketing? How does it work?
Answer:
Name and briefly define three forms of product advertising.
Answer:
Describe the idea screening stage of the new-product development process. Describe a
common test used during the screening stage.
Answer:
What is a SWOT analysis? How does it relate to strategic planning?
Answer:
How has social media changed the way marketers and consumers communicate with
one another? How has it changed who is in control of the communication?
Answer:
Marketing managers can use a wide variety of special pricing tactics beyond discounts
and allowances to fine-tune prices. Name and define five of the other pricing tactics that
are wholly legal. For each tactic, give an example of a specific company, industry, or
product that would use the tactic.
Answer:
