An office supply store can buy a desk for $300. If the store owner sells the desk for
$450, what is the markup based on the selling price?
a. 15 percent
b. 20 percent
c. 25 percent
d. 33 percent
e. 50 percent
Answer:
The two types of package labeling in common usage today are:
a. informational and persuasive.
b. promotional and nonpromotional.
c. functional and persuasive.
d. government mandated and seller controlled.
e. motivational and required.
Answer:
Customer value is the relationship between company profits and company costs.
a. True
b. False
Answer:
Imagine life without that little spinning wheel icon to remind you that your computer is
still searching for a Web site or copying documents. Without this wheel, consumers
might think the computer had stopped working. This process in which consumers
interpret this stimulus into a meaningful and coherent picture is called:
a. exposure
b. perception
c. retention
d. cognition
e. selection
Answer:
Laurie knows little about cooking and does not want to spend the time to learn how to
make a quiche. However, she has been asked to bring a quiche to an office retirement
party. Not wanting to make a poor choice, she is likely to:
a. intuitively make the right choice.
b. avoid making a decision by not attending the party.
c. buy the most expensive pre-made quiche (perhaps paying too much), guessing that
the price is related to quality.
d. research the product and buy the least expensive frozen quiche she can find.
e. buy the least expensive frozen quiche because most consumers feel that price is not
directly related to quality.
Answer:
A ____ is a legal term indicating the owner’s exclusive right to use a brand name or part
of a brand.
a. trademark
b. patent
c. brand
d. private brand
e. right of warranty
Answer:
When Jerry took delivery of his brand new (and very expensive) Jaguar automobile, he
was filled with pleasure and excitement. This is an example of the _____effect
associated with the price-quality relationship.
a. durability
b. allocative
c. prestige
d. hedonistic
e. performance
Answer:
When goods and services are exchanged, the trade is called:
a. exchange.
b. substitution.
c. barter.
d. swap.
e. bargaining.
Answer:
The growth stage is the first stage of the product life cycle.
a. True
b. False
Answer:
David is shopping for tires for his Audi. He looks in the yellow pages of the local phone
book and calls Costco, Sam’s Club, Sears, and a local car repair shop. In his
decisionmaking process, David is using:
a. marketing-controlled information sources
b. demographic information sources
c. nonmarketing-controlled information sources
d. secondary data sources
e. internal search sources
Answer:
Stickiness is a measure of a Web site’s effectiveness.
a. True
b. False
Answer:
Functional discounts are typically calculated as the wholesale price times the
accumulated margin percentages.
a. True
b. False
Answer:
Jan’s twin sister Joan is a fantastic cook who makes wonderful homemade meals for her
family. Jan cannot cook and wishes she could do the same. An ad for Stove Top stuffing
promises “one box, three meal ideas, 30 minutes.” Jan makes a point of adding this item
to her grocery list. According to Maslow’s hierarchy of needs, this ad appeals to Jan’s
_____ needs.
a. physiological
b. interactive
c. esteem
d. safety
e. self-actualization
Answer:
Empowerment in a CRM environment is normally a process of collecting customer
information through customers’ feedback on products.
a. True
b. False
Answer:
The reseller market is the same as the retailer market.
a. True
b. False
Answer:
In the 1960s, there were only three television networks and most consumers only
received these three channels plus a local channel. Now, consumers have more than
1,600 channels to choose from. This is an example of which problem facing media
planners?
a. Media fragmentation
b. Flighted media
c. Effective frequency
d. Effective reach
e. Media consolidation
Answer:
Sawyer Components manufactures high-cost, customized roller parts for paper mills
and is expanding into China because of the opportunity for significant growth in this
developing country. The owner uses effective global strategies and is aware of threats
from foreign competitors. This illustrates that the owner has a global:
a. advantage
b. imperative
c. vision
d. outsource
e. introspection
Answer:
American firms should never try to do business in Europe in August because they will
find that everyone has gone on vacation. Today, all European countries have laws
requiring companies to provide employees with vacations of at least four to five weeks.
This would be an important part of the European _____ environment that
any multinational firm doing business there needs to be aware of.
a. cultural
b. political
c. economic
d. technological
e. natural
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. Laura felt a little bad about leaving her dog, Toby, at home
all day while she was at work. She remarked to a coworker one day about her concerns
and was surprised when the coworker told her about the local “doggy daycare”
business, which she had never heard of before. Because Laura did not know such a
service existed, “doggy daycare” represented a(n) ____ to her.
a. heterogeneous shopping product
b. diffusion
c. market laggard
d. product diversification
e. innovation
Answer:
Whenever a customer opens an account at First Southern National Bank, a teller or
account representative asks the customer whether he or she needs a CD, online banking,
or other services. In other words, the account representative engages in:
a. interactive selling.
b. bait and switch.
c. trading up.
d. customer relationship retailing.
e. suggestion selling.
Answer:
In a(n) ____ sample, additional respondents are selected on the basis of referrals from
the initial respondents.
a. quota
b. judgment
c. piggyback
d. probability
e. snowball
Answer:
Aside from the usual characteristics, sales managers look for in sales recruits.
a. Sociability
b. Creativity
c. Ego strength
d. Empathy
e. All of these choices
Answer:
Marketers need a thorough understanding of the laws established by the federal
government, state governments, and regulatory agencies.
a. True
b. False
Answer:
Globalization:
a. relies on strong government regulations to keep down prices
b. promotes economic freedom and increases living standards
c. tends to dry up the flow of foreign capital in less developed countries
d. has made it easier for governments to abuse the freedom and property of their
citizens
e. has kept wages low in developing countries around the world
Answer:
From a marketing standpoint, the most useful Facebook feature is probably _____ ,
which allows a brand to communicate directly with fans via status updates.
a. the Profile page
b. the search engine
c. the Fans list
d. the Timeline
e. the Real or Fake application
Answer:
_____ is the process of planning, collecting, and analyzing data relevant to a marketing
decision. The results of this analysis are then communicated to management.
a. Data collection
b. Artificial intelligence
c. Cross-tabulation
d. Marketing research
e. Single-source research
Answer:
Cooley Manufacturing is a multinational company selling plumbing components around
the world. This company has progressed to the point that it operates an entire line of
business in several other countries. Which stage of multinational business does this
represent?
a. Stage one
b. Stage two
c. Stage three
d. Stage four
e. Stage five
Answer:
Developing a cost competitive advantage can enable a firm to deliver superior customer
value.
a. True
b. False
Answer:
Without context, measurements are :
a. Not very costly.
b. invaluable.
c. more accurate.
d. hard to capture.
e. meaningless.
Answer:
A ____ seeks to achieve some goal other than the usual business goals of profit, market
share, or return on investment.
a. nonprofit organization
b. synergistic entity
c. company with no equity
d. service provider
e. patronage-oriented organization
Answer:
Procter & Gamble manufactures Tide laundry detergent, the best-selling brand in the
United States. But is also offers Tide to Go, which is a stick product consumers can use
to clean a spot on their clothing between washings, and small travel packets of Tide
detergent. These other products are part of Tide’s product line:
a. width.
b. breadth.
c. mix.
d. depth.
e. synergy.
Answer:
Name and describe the two labeling forms.
Answer:
Compare and contrast contests and sweepstakes.
Answer:
An organization is not completely at the mercy of the external environment. Explain
environmental management and give an example how a motorcycle helmet
manufacturer might use it.
Answer:
Nellie Tompkins is the owner and operator of Hot Mamma Salsa, which she sells at
craft festivals. She only makes and sells three types of salsa””peach, pear, and
pineapple. The joint costs of leasing her professional kitchen for manufacturing, travel
to craft shows, insurance, and so on are allocated on an equal basis to the three types of
salsas sold. Last year’s sales figures and allocated joint costs follow. Should Hot
Mamma Salsa stop selling its pear salsa? Why or why not?
Answer:
What is a market segment? Define marketsegmentationand discuss why market
segmentation is important to the well-being of most companies.
Answer:
Apply the three methods of changing attitudes or beliefs about brands to possibilities
for the marketing activities of Kellogg’s Corn Flakes (or another breakfast cereal you
are more familiar with).
Answer:
Marketers use demographic information to segment markets because it is widely
available and often related to consumers’ purchasing and consumption behavior. List
five common bases used by marketers for demographic segmentation. For each base
listed, give an example of a product specifically targeted to the needs and wants of the
segment identified within the base.
Answer:
List and briefly describe the four basic types of media scheduling. Give an example of a
product that would be likely to use each of these types of scheduling.
Answer:
Hemopure is a blood substitute developed by Biopure Corporation. It does not have to
be refrigerated or blood typed like donated human blood that is currently being used in
blood transfusions. It comes in bags just like donated blood, so it can be used with
intravenous tubes and needles just like donated human blood. As a result, medical
personnel will not have to make any adjustments if they adopt this product.
Name and describe the five product characteristics influencing the rate of adoption of
new products, and explain how each factor will influence the rate of adoption of a blood
substitute like Hemopure.
Answer:
Name two advantages and two disadvantages associated with the use of break-even
analysis.
Answer:
You are the promotions manager for a new weight-loss program that is based on a
low-carbohydrate diet. Describe how you might use all five tools of the promotional
mix to promote the product.
Answer:
Explain how marketing is important to business and society.
Answer:
The ultimate objective of any promotion is a purchase or some other activity. One
model for reaching promotional objectives is called the AIDA concept. This model
proposes that consumers are moved through four stages by the promotional mix.
Suppose you are the promotional manager for the new B-Gone squirrel-proof bird
feeders. (Before the B-Gone, there were no feeders on the market that were really
squirrel proof.) This bird feeder is guaranteed to prevent squirrels from reaching and
eating its contents. Describe the promotional activities you would recommend in each
stage of AIDA model for the B-Gone feeder. Assume that personal selling will NOT be
used.
Answer:
List the components of the supply chain that are often described as a sequence of
‘source, make, and deliver.”
Answer:
Discuss the customer and product conditions that suggest personal selling is more
important than advertising and sales promotion. Give some examples of products for
which personal selling would likely be the best tactic.
Answer:
List the seven steps in the personal selling process.
Answer: