Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Distribution managers select different transportation modes based on several distinct
criteria. List and briefly define these criteria, and name the best and worst transportation
mode for each criterion.
Answer:
If the seller pays all or part of the actual freight charges and does not pass them on to
the buyer, the seller is using
_____ pricing.
a. freight absorption
b. uniform delivered
c. zone
d. FOB origin
e. basing-point
Answer:
To save money on marketing research, a marketing manager suggests that the company
use the results of a survey conducted last year because similar questions were asked
then. The manager is suggesting use of primary data.
a. True
b. False
Answer:
A problem facing the timber industry is the absence of any effective way to prove that
rain forest timber has been legally harvested. In places like Indonesia, as much as 80
percent of timber available for sale is illegally cut. Companies like The Home Depot do
not want to sell timber from illegally logged forests even though the demand is great for
timber from rain forests. Which of the following conditions required for an exchange to
occur is missing when a company tries to sell illegally acquired logs to The Home
Depot?
a. There are more than two parties involved.
b. Each party has something of value to bring to the exchange.
c. One party is free to accept the exchange offer.
d. Each party believes it is appropriate to deal with the other party.
e. Nobody sees the exchange as producing value.
Answer:
____ is a trade agreement that includes Argentina, Bolivia, Brazil, Chile, Colombia,
Ecuador, Paraguay, Peru, Uruguay, and Venezuela. This agreement eliminated the tariffs
among these trading partners.
a. NAFTA
b. Maastricht
c. WTO
d. GATT
e. Mercosur
Answer:
Which form of advertising is designed to influence demand for a specific brand?
a. Institutional
b. Primary
c. Competitive
d. Direct
e. Growth
Answer:
W.W. Grainger, Inc. is one of the world's largest businesstobusiness distributors of
equipment, component parts, and supplies in the United States and Canada. It has
ownership title to over 220,000 products, which are stocked in one national and nine
regional warehouses to guarantee product availability and quick service to the many
manufacturers who are its customers. W.W. Grainger is an example of a(n):
a. agent or broker
b. merchant wholesaler
c. retailer
d. consumer market
e. hypermarket intermediary
Answer:
An economic recession increases demand for products and services.
a. True
b. False
Answer:
Every year, the Discovery Channel has what it calls Shark Week, a weeklong marathon
of programs on sharks. In New York, Discovery Channel street teams disguised as
Surfers, Bight University faculty, and Bight University "chewleaders" will attack city
streets in July visiting morning television shows, landmarks, and hightraffic areas to
promote the series. An article in the New York Times on Shark Week and the Discovery
Channel's street teams would be an example of:
a. a sales promotion.
b. publicity.
c. advertising.
d. implicit communications.
e. a personal sales presentations.
Answer:
Which of the following is a pricing policy whereby a firm charges a high introductory
price, often coupled with heavy promotion?
a. Penetration pricing
b. Price skimming
c. Price capping
d. Profit pricing
e. Price maximization
Answer:
WhirlpoolandLowe's
Every week, Whirlpool and Lowe's have an online conference call to discuss what
appliances are selling in the stores and what capacity Whirlpool has to make product.
Often, the discussion revolves around a particular model that is selling at a higher than
expected rate in Lowe's. This often results in Whirlpool quickly flexing its supply chain
to make more of the highselling product and delivering it to Lowe's customers.
However, sometimes the answer is that Whirlpool and/or its suppliers do not have the
capacity to make more of the product in question. It then becomes a question of demand
shaping for Lowe's. What promotions, instore displays, and sales incentives can Lowe's
implement to shift demand from the capacityconstrained model to one that the supply
chain has more capacity to deliver? In this way, Lowe's, Whirlpool, and their suppliers
manage supply and also demand.
Refer to Whirlpool and Lowe's. Given that accessibility and reliability are keys to
Lowe's marketing strategy, what mode of transportation is most likely used in this
relationship?
a. Air
b. Water
c. Truck
d. Pipeline
e. Rail
Answer:
The ___ of retail stores is a key factor in their success; the goal is to use all space in the
store effectively, including aisles, displays, and even nonselling areas.
a. merchandise density
b. layout
c. target strategy
d. merchandise mix
e. promotional strategy
Answer:
CallawayGolfCo.
Callaway Golf Co. has long been a leader in women's golf equipment, but it wanted to
expand its lead in this growing sector of the market. While Callaway's technical people
knew what could be done with design, they did not know exactly what women wanted
in their clubs. Callaway management decided what it needed to do was to bring the
technicians and women golfers together. Beginning about three years ago, Callaway
sent a team of researchers, designers, and golf pros out to visit with 40 women golfers
of various abilities in locations from California to Florida. In selecting the golfers to
study, Callaway decided to focus on women who were just beginning to play, as well as,
experienced, competitive golfers who wanted to own the latest equipment. Callaway
management felt that these two extreme groups of golfers had been overlooked by golf
club manufacturers. Further, Callaway felt that if enough could be learned about these
two groups, then the company would also learn enough to serve the rest of the women
golfer market. Basically, the research team observed the women playing golf and
listened to their comments and concerns. The information gathered by this research
team was built into every aspect of the design of a new golf club, including the feel of
the club, the length of the club shaft and size of the club head, and the weight of the
club. When prototypes of the new clubs were completed, they were sent to the women
golfers to get their feedback. That feedback was then used to refine the club design.
This process went on until the women said the new clubs greatly enhanced their game.
The entire process from original prototype to final product took a little less than one
year.
Refer to Callaway Golf Co. Callaway used its contacts at golf courses around the
country to find the 40 women for its study. The 40 women would most likely be called a
sample.
a. systematic
b. convenience
c. cluster
d. stratified
e. random
Answer:
FishyBusiness
DNA testing has revealed that sushi bar customers are not always getting what they pay
for. Scientists at the American Museum of Natural History tested fish from 31 sushi
bars and found that the tuna coveted by many diners is often a cheaper substitute, a
banned fish, or an endangered species. This could be the result of an honest mistake in
the supply chain, or it could be a deliberate attempt to deceive buyers. However,
researchers have uncovered a DNA "bar code" that can accurately identify the type of
fish. While still a ways off, the scientist who developed the tuna DNA bar code
envisions a small device that can provide instantaneous species identification, which
will result in restaurants ultimately providing what their customers are demanding and
paying for.
Refer to Fishy Business. In the future, a device will allow each member of the supply
chain for fresh fish to verify accountability for providing the species of fish the
customer ordered. Which element of supply chain integration is this when each
individual firm or business unit is accountable for meeting its own goals regarding
providing the fish it says it is providing?
a. Benchmark integration
b. Measurement integration
c. Planning integration
d. Management integration
e. Leagile integration
Answer:
Dakin Farms in Vermont uses mass marketing. Marketers would call the strategy an
undifferentiated targeting strategy.
a. True
b. False
Answer:
Heinz is a leading global food manufacturer. It manufactures and markets Farleys (baby
food), Jack Daniel's sauces, and Weight Watcher's diet/slimming meals and
supplements. The use of these brand names instead of the Heinz name is an example of
a(n) ____ branding strategy.
a. individual
b. synergistic
c. umbrella
d. family
e. piggyback
Answer:
If a benefit is indirect to the customer, the marketer may find a challenge in promoting a
product with little:
a. benefit complexity
b. feature charisma
c. benefit strength
d. personalization
e. benefit exchange
Answer:
The _____ stage of ethical development represents the morality of the mature adult.
a. preconventional morality
b. transformationalism
c. conventional morality
d. postconventional morality
e. actualized morality
Answer:
Firms increase the depth of their product lines for all of the following reasons EXCEPT:
a. to attract buyers with different preferences.
b. to diversify risk.
c. to further segment the market.
d. to capitalize on economies of scale.
e. to even out seasonal sales patterns.
Answer:
A Wall Street Journal headline is "Best Buy Wins iPhone Lineup." This article
represents _____ for Best Buy and Apple, Inc.
a. marketing research
b. sales promotion
c. personal selling
d. advertising
e. publicity
Answer:
Chandler Kumar owns two antique stores. One is in an upscale neighborhood, and its
merchandise is artfully arranged and priced to indicate product rarity. The other is in a
run-down strip mall and contains some of the same type of merchandise, but the items
are left in open boxes and placed haphazardly on shelves. Customers of either store
have entirely different perceptions of the stores and would be surprised to know Kumar
operates each of them because he uses such differing _____strategies.
a. market integration
b. segmentation
c. targeting
d. positioning
e. market combination
Answer:
Which public relations tool involves a company spending money to support an issue,
cause, or event that is consistent with corporate objectives?
a. Advocacy
b. Lobbying
c. Product placement
d. Sponsorship
e. Underwriting
Answer:
The socialization process involves adopting the values of the culture in which a person
was raised and is usually strongly influenced by the family.
a. True
b. False
Answer:
All of the following accurately describe supply chain management EXCEPT:
a. physical flow process.
b. customer driven.
c. provides enhanced customer and economic value.
d. plays the role of communicator of customer demand.
e. relies on a "push" strategy.
Answer:
Consumers' responsiveness or sensitivity to changes in price is known as:
a. break-even.
b. Equilibrium.
c. unitary revenue.
d. asymmetrical demand.
e. elasticity of demand.
Answer:
A ___ is everything, both favorable and unfavorable, that a person receives in an
exchange. It can be tangible, intangible, a service, an idea, or a combination of these
things.
a. brand equity
b. quality
c. warranty
d. transaction
e. product
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. At Great Bear Nature Tours, the owners are careful to treat
both guests and employees very well. In fact, some employees have commented that the
employees are treated like they were guests. This is an example of:
a. knowing your target market
b. interior/exterior marketing
c. internal marketing
d. gap theory
e. unbundled marketing
Answer:
If a market segment is especially motivated by coupons in newspapers, which
segmentation success criterion is most influential in the success of this program?
a. Responsiveness
b. Identifiability and measurability
c. Substantiality
d. Accessibility
e. Functionality
Answer:
A Small World is a nonprofit retail store that sells gift items made by artisans from over
30 different countries. This store provides employment to craftspeople in developing
nations and markets their handiwork at a fair price. The store defines its market
segment as people who believe in helping others and who feel good about helping
others whenever possible. The store uses ______ segmentation.
a. demographic
b. psychographic
c. geodemographic
d. ethnic
e. geographic
Answer:
Geodemographic segmentation combines geographic, demographic, and lifestyle
segmentations.
a. True
b. False
Answer:
All of the following are examples of social media tools and platforms EXCEPT:
a. a media sharing Web site.
b. an AM/FM transistor radio.
c. an iPhone.
d. a blog.
e. Twitter.
Answer:
Consumers' perceptions regarding a product's position cannot be changed.
a. True
b. False
Answer:
