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A reading service for the visually impaired requires each reader applicant to prepare and
submit a one-hour interview tape of material chosen by the service to determine
whether the reader has pleasing vocal characteristics and is accent free so that it is not
necessary to use the same reader every time. The reading service is trying to limit
problems associated with the service characteristic of:
a. tangibility.
b. credence quality.
c. heterogeneity.
d. simultaneous production and consumption.
e. flexibility.
Answer:
Adding additional products to an existing product line in order to compete more broadly
in the industry is referred to as:
a. product line extension.
b. product modification.
c. planned obsolescence.
d. repositioning.
e. cannibalization.
Answer:
Which of the following items is MOST likely to be a fully planned purchase?
a. a pair of jeans
b. a bottle of soda pop
c. a motorcycle
d. a flashlight
e. weekly grocery shopping
Answer:
Karen has a gluten allergy, which means she is unable to eat certain foods. The chef at
her favorite restaurant understands Karen's situation and is always happy to modify his
recipes for her when she dines there. The chef is providing assurance to Karen.
a. True
b. False
Answer:
A small U.S. print studio uses Facebook and Pinterest to display its stationery and other
products. The regular posts and reviews from customers have attracted attention from
several British companies who like the printer's style. What is this an effect of?
a. Promotion adaptation.
b. Using social media to expand beyond local markets.
c. Using product excellence to export products.
d. Creating a new franchise in England.
e. Production strategy
Answer:
The purchase of products like soft drinks, cleaning products, and gasoline generally
exemplifies routine response behavior.
a. True
b. False
Answer:
______is the extra revenue associated with selling an additional unit of output.
a. Average revenue
b. Marginal revenue
c. Marginal cost
d. Net profit
e. Average variable cost
Answer:
Salespeople who work for market-oriented organizations are generally perceived by
their customers as problem solvers and important links to supply sources and new
products.
a. True
b. False
Answer:
Which of the following statements about planned obsolescence is true?
a. Environmentalists support planned obsolescence.
b. A company that is interested in producing a quality product would never engage in
planned obsolescence.
c. Style modification creates planned obsolescence.
d. Planned obsolescence is not an ethical issue.
e. All of the statements about planned obsolescence are true.
Answer:
All of the following are good reasons to study marketing EXCEPT:
a. Marketing creates consumer needs.
b. Marketing plays an important role in society, coordinating the huge numbers of
transactions needed to provide goods and services.
c. Marketing is a key function in business.
d. Marketing offers outstanding career opportunities.
e. Marketing affects your day-to-day life as a consumer.
Answer:
Ranked from the lowest to the highest level, Maslow's hierarchy of needs model
includes:
a. safety, esteem, social, physiological, and self-actualization needs
b. physiological, social, esteem, economic, and self-actualization needs
c. psychological, safety, economic, esteem, and social needs
d. physiological, safety, social, esteem, and self-actualization needs
e. safety, economic, social, esteem, and self-development needs
Answer:
Many regard vertical conflict as healthy competition.
a. True
b. False
Answer:
Smucker's purchased Folgers Coffee in 2008. The option to buy Folgers represented
a(n) to Smucker's.
a. opportunity
b. strength
c. weakness
d. threat
e. burden
Answer:
Break-even analysis determines what sales volume must be reached before total
revenue equals total costs.
a. True
b. False
Answer:
Around the world, most retailers are ____ , operating one or a few stores in their
community, owned by a single person or partnership and not operated as part of a larger
retail institution.
a. independent
b. chain stores
c. franchise outlets
d. specialty clubs
e. product assortment stores
Answer:
Allstate has more than 1,500 price levels determined by complex algorithms that
analyze 16 credit report variables, including late payments and card balances. Allstate is
using a _____ to set prices.
a. yield management system
b. capacity correlation system
c. service forecasting tools
d. service management system
e. capacity maintenance tool
Answer:
Wrestling Merchandise
Market research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and
18- to 44-year-old males are most likely to watch a televised professional wrestling
event or attend a live match. Wrestling events are regularly broadcast in 120 different
countries. Merchandise licensed by World Wrestling Entertainment (formerly known as
the World Wrestling Federation) can be purchased at JCPenney and Walmart. Clothes
for adults are used to reach markets that may not buy action figures, video games, and
novelty candy, but who are still proud to sport World Wrestling Entertainment (WWE)
trademarks.
Refer to Wrestling Merchandise. The marketing research revealed that segmentation
can be used to identify the biggest fans of professional wrestling.
a. benefit
b. psychographic
c. demographic
d. geographic
e. geodemographic
Answer:
The capacity of a particular marketing channel member to control or influence the
behavior of other channel members is known as:
a. channel power.
b. channel conflict.
c. channel control.
d. channel dominance.
e. channel inversion.
Answer:
Uniform delivered pricing enables a firm to:
a. charge each customer the actual cost of shipping its products.
b. stir up price competition between buyers.
c. offer every purchaser an identical, flat freight charge.
d. discriminate in favor of buyers that are geographically closer to the seller.
e. charge each customer its fair share of the cost of shipping.
Answer:
NAICS is an industry classification system used by most nations of the world.
a. True
b. False
Answer:
TurkeyHuntingEquipment
Around the beginning of fall each year, about 2.7 million turkey hunters all over the
United States start looking at catalogs for the perfect item to guarantee that this year
they will kill a wild turkey, the most elusive game bird in North America. The devoted
turkey stalker can stock up on everything from camouflaged turkey hunting socks,
turkey license plate holders, vests with huge pockets for toting dead birds, and hunting
videos to turkey decoys, turkey earrings, and turkey callers. Neil Cost is considered the
best manufacturer of turkey callers in the world. It is his only product, and each is
highly prized by turkey hunters. It is not unusual for a turkey hunter to pay $5,000 for
one of Cost's callers.
Refer to Turkey Hunting Equipment. Given that the wild turkey hunters number
approximately 2.7 million, it meets the segmentation criterion of:
a. substantiality
b. accessibility
c. reliability
d. responsiveness
e. functionality
Answer:
Mercedes-Benz
Daimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new
line of downsized luxury vehicles in the United States by 2012. Daimler has
experienced a recent drop in global sales attributed to its product mix that focuses on
larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy
standards coming down the pipeline, Daimler doesn"t want to be left behind. Daimler is
behind its competition, though. Its German rivals, Audi and BMW, have been relatively
successful in the United States. BMW's Mini Cooper, demanding as much as $34,000,
has already driven away with some of Daimler's potential sales. While Daimler already
offers the Smart car in the United States, the new offerings will not be going after the
same consumers.
Refer to MercedesBenz. MercedesBenz's baby boomers are a useful segment because
they meet certain criteria. Which of the following is not one of those criteria?
a. Substantiality
b. Identifiability and measurability
c. Accessibility
d. Responsiveness
e. Niche creativity
Answer:
GotMilk?
Just because consumers live in a big city doesn"t mean they can"t have fresh milk right
from the farm. Many dairy farms, such as Oberweis Dairy and Smith Brothers Farms,
offer home delivery of fresh milk, just like in the old days. While some of these services
are established and have been around since the 1920s, New York City"based Manhattan
Milk started up in 2008. For $20 or more, depending on what is ordered, consumers
anywhere in Manhattan can enjoy organic milk, butter, yogurt, and cheese from
Pennsylvania Amish farms and eggs from Vermont. Unlike most store-bought milk,
theirs is not homogenized and is free of hormones typically given to cows to produce
more milk.
Refer to Got Milk? Oberweis Dairy has been in business for over 80 years, and
customers trust this provider. Which component of service quality does this trust
exemplify?
a. Creativity
b. Assurance
c. Empathy
d. Tangibility
e. Reliability
Answer:
The difference between the retailer's cost and the selling price is the:
a. gross margin.
b. markup percentage.
c. profit.
d. keystone.
e. breakeven profit.
Answer:
DeFeet International
DeFeet International started as a cyclist sock company. The founder, Shane Cooper, said
that the existing socks for cyclists were just not of great quality, so he made socks for
his cycling team by knitting them inside out. The socks were of special materials aimed
at giving the cyclist the most comfortable fit. These socks were not the traditional white
socks but were bright, bold, and flashy colored socks with cool graphics. These
high-tech socks were priced around $10 a pair. Their Web site says "DeFeet Is Made for
Driven Soles." Soon, cycling elites like Lance Armstrong and Greg LeMond were
sporting the DeFeet brand. The company branched into running, hiking, and snow gear.
Products include socks, armskins, calfskins, boxer briefs, gloves, and shirts for the
serious athlete. DeFeet has a custom department where socks, armskins, and gloves can
be personalized with any motif, including sponsor types of logos like Michelin, Pabst
Blue Ribbon, or BP. Even kids can enjoy DeFeet's highquality socks. DeFeet's products
can be found in retailers across the world""in more than 20 countries like Israel,
Australia, Belgium, and the United States. More than two dozen online retailers also
carry DeFeet products.
Refer to DeFeet International. DeFeet branched from making socks for cyclists to
making apparel for skiing, hiking, corporate sponsors, and kids. This is an example of
which of Ansoff's strategic alternatives?
a. Market penetration
b. Market development
c. Product development
d. Diversification
e. Concentration
Answer:
Your Memory Lane creates custom art prints that use graphs and icons in a street scene
to commemorate special occasions. Suppose that Your Memory Lane has priced its
product at $350 per print. Further, it has determined that the company's fixed cost is
$12,500, with average variable costs per print of $250. What is the fixed cost
contribution per print?
a. $225
b. $100
c. $605
d. $2
e. $1
Answer:
Which of the following is not true of traditional personal selling methods?
a. They often attempt to persuade the buyer to accept a point of view.
b. The objectives of the salesperson are frequently at the expense of the buyer.
c. They have disappeared in the wake of relationship selling.
d. They entail making a one-time sale and then moving on to the next prospect.
e. They sometimes create a win"lose outcome.
Answer:
Most movie theaters offer discount ticket prices to students and senior citizens. This
illustrates the ____ pricing objective.
a. subsidized
b. operations-oriented
c. profitability-oriented
d. service quality
e. patronage-oriented
Answer:
There are several criteria used in selecting media in an advertising campaign. Name and
briefly discuss the impact of five of these criteria used to select media.
Answer:
Every three months or so, Stanley cleans the lint out of the long vent to his clothes
dryer. It is a messy job that Stanley hates. It is too bad that Stanley has never heard of
the Casabella Bendable Dryer Vent Brush, a specially designed brush that would make
his life a little easier. For Stanley, the dryer vent brush is a(n) ____ product because he
doesn"t know the product exists.
a. heterogeneous shopping
b. specialty
c. unsought
d. convenience
e. exclusive
Answer:
One reason why negative customer comments and complaints are important to an
organization is that they can:
a. quickly be hidden from competitors.
b. be used in future advertising campaigns.
c. help the organization identify "problem" customers, who are then typically removed
from mailing lists.
d. bring to light unknown brand flaws.
e. generate sympathy for the organization when consumers realize that "no one is
perfect".
Answer:
Data previously collected for purposes other than the one at hand are an important
source of information as the researcher defines the problem. These data are called data.
a. single-source
b. secondary
c. primary
d. consensual
e. convenience
Answer:
HardieSidingProducts
James Hardie began selling fiber cement siding products in the United States in 1989 to
leading builders, lumberyards, and home improvement centers. Even though ads
guaranteed the product would not rot or crack for 50 years, many builders hated the
product. It was heavy to install, and it showed every flaw in a bad framing job. In 1997,
Hardie decided to run ads in traditional lifestyle magazines and emphasize the
emotional appeal of houses made with strong, weather-resistant materials. Soon
consumers began asking their builders or remodelers to use the product. Trade ads were
used to explain how builders could take advantage of the interest created by the ads in
lifestyle magazines. By 2000, the HardiePlank was the number one brand of siding in
North America. James Hardie is now the third most recognized brand of building
material in the world.
Refer to Hardie Siding Products. HardiePlank siding is best described as a(n) ___
product.
a. business
b. specialty
c. unsought
d. shopping
e. convenience
Answer:
Because of the influence of social marketing, the interaction between producer and
consumer has become LESS focused on:
a. engaging.
b. listening.
c. understanding.
d. entertaining.
e. influencing.
Answer:
A retailer of sporting goods equipment is interested in learning peoples' attitudes,
motivations, and feelings about its product lines. All of the following are potential
sources for this information EXCEPT:
a. observation studies.
b. mail questionnaires.
c. in-store interviews.
d. telephone surveys.
e. focus group interviews.
Answer:
