Open Sesame is a chain of Thai restaurants located in the western United States. The
marketing manager has discovered that there is a growing demand for Spanish food and
that Latino Americans spend more money on food away from home than other ethnic
groups. This information would be included in the _____ part of the SWOT analysis.
A.Strengths
B.Threats
C.Opportunities
D.Strategic
E.Weaknesses
Open Sesame is a chain of Thai restaurants and it discovers a growing trend for Spanish
food. So it would be considered an external threat.
A_____________ eliminates many in-house business functions and activities in favor
of focusing only on those aspects for which it is best equipped to add value.
A.Horizontal organization
B.Vertical organization
C.Network organization
D.Matrix organization
E.Value organization
Based on the concept of value networks, a whole new breed of organization is arising
called a network organization. It eliminates many in-house business functions and
activities in favor of focusing only on those aspects for which it is best equipped to add
value.
Creating a perception about price merely from the image the numbers provide the
customers is called as ________________.
A.Psychological pricing
B.One price strategy
C.Variable pricing
D.Every day low pricing (EDLP)
E.High/low pricing
Psychological pricing means creating a perception about price merely from the image
the numbers provide the customer. For example, customers mentally process the price
$9.99 significantly lower than $100.
Recently, Mercedes-Benz quietly reduced its warranty coverage by eliminating some
free scheduled maintenance, because the expense for the firm was too high. At the same
time, Hyundai and others have expanded their warranties to build consumer confidence
in their cars. They realize that extending the period of warranty coverage demonstrates
they are making better cars in a very tangible way. These are examples of firms
considering the ______ of the product warranty.
A.Competitive advantage
B.Costs and benefits
C.Message
D.Product differentiation
E.Persuasiveness
At one level, a company must be competitive and offer warranties consistent with the
industry, however, companies constantly evaluate their warranties to consider whether
the benefits of the warranty exceed the costs.
Maryanne has noticed that one of the manufacturing teams has lost productivity over a
six month period of time. She puts together a document that describes the productivity
loss and does a study to determine the cause. She finds that one of the key machines in
the process breaks down often. Maryanne asks several machine manufacturers to
submit their proposals. Maryanne is playing the role of a(n) ________.
A.Influencer
B.Gatekeeper
C.Initiator
D.User
E.Decider
The initiator starts the buying decision process. Maryanne has started the process by
conducting the study and asking machine manufacturers to submit proposals.
Compared to B2B markets, B2C markets are characterized by:
A.A larger volume of individual purchases.
B.A larger number of customers.
C.The strategic location of buyers.
D.Complex supply chains.
E.None of the above
B2C markets have more customers who buy in smaller, less frequent quantities.
ABC company is concerned about its customer’s beliefs and values. ABC’s marketing
manager has customer evaluate the product’s performance on a list of attributes. This is
important information because most attitudes result from an individual’s assessment of
an object using a(n) ________________.
A.Focus group
B.Multiattribute model
C.Positioning map
D.Conjoint analysis
E.AIO method
Most attitudes result from an individual’s assessment of an object using a multiattribute
model that evaluates the object on several important attributes. Learning about how
individuals evaluate various attributes is helpful to marketers in creating specific
marketing messages and overall value proposition.
The marketing manager for Brand A Razors, a strong national brand, believes he knows
how customers will react to a new product offering, but he conducts marketing research
in order to provide justification for this new product. This violates the _________
aspect of the definition of marketing research.
A.Systematic
B.Validity
C.Impartial and objective
D.Scientific
E.Reliability
Good marketing research does not prejudge the information or develop answers to fit an
already decided outcome; rather, it enhances good decision making. Since the manager
is conducting market research in order to justify his belief, the research would not be
impartial and objective.
While writing a customer satisfaction questionnaire, the marketing director for Brand X
Bank came up with a set of questions that the customer should answer by circling a
number between 1 and 7 where 1 meant that they were very dissatisfied by that aspect
of their experience and 7 meant that they were very satisfied by that aspect of their
experience. He is using _________ questions to collect this information.
A.Behavioral
B.Open-ended
C.Observational
D.Closed-ended
E.Probing
Closed-ended questions are precise and provide specific responses; as a result, they
allow for more quantitative analysis. Since the customers have to select a number
between 1 and 7, the available answer options are already decided and thus it becomes a
close-ended question.
Kraft Foods planned to introduce more than 80 new products in 2008. This illustrates
Fred Wiersema’s new market reality of ____________________.
A.Competitors proliferate
B.All secrets are open secrets
C.Innovation is universal
D.Information overwhelms and depreciates
E.Easy growth makes hard times
Product life cycles keep getting shorter and continuous innovation is now expected and
even common.
When two or more brands are reviewed side by side against each other on certain
attributes this is considered ____________________________.
A.Pioneering advertising
B.Competitive advertising
C.Institutional advertising
D.Comparative advertising
E.Sales promotion
In comparative advertising, two or more brands are directly compared against each
other on certain attributes.
In the past, __________________ allowed manufacturers to establish artificially high
prices by limiting the ability of wholesalers and retailers to offer reduced or discounted
prices.
A.Fair trade laws
B.Minimum markup laws
C.Loss leader products
D.State fair trade laws
E.None of the above
Fair trade laws allowed manufacturers to establish artificially high prices by limiting
the ability of wholesalers and retailers to offer reduced or discounted prices. These laws
protected mom-and-pop operators from the price discounting by chain stores.
__________ refers to business practices that meet humanity’s needs without harming
future generations.
A.Sustainability
B.Public relations
C.Publicity
D.Value
E.Relationship orientation
Sustainability refers to business practices that meet humanity’s needs without harming
future generations. Sustainability ensures that both the success of the firm and the
success of society at large are sustained over the long term.
A unique challenge for a ______________ is that profit margins are low relative to
other retailing concepts with net margins averaging 1 percent of sales.
A.Market maker
B.National brand
C.Food retailer
D.Non-store retailer
E.Catalogue retailer
Food retailers occupy a unique retail space and face a number of specific challenges,
one of them being low profit margins relative to other retailing concepts with net
margins averaging 1 percent of sales.
Apex Jerseys, a manufacturer of sports apparel and sporting equipment, has
experienced a sharp drop in sales over the last quarter. The marketing manager has
asked the research department to investigate this alarming development. The first step
taken by the researchers in their investigation should be to ___________.
A.Design a questionnaire to gather pertinent data
B.Decide which statistical procedure to use
C.Determine sources of internal secondary data
D.Identify the sample of customers to survey
E.Formulate a specific research problem
Defining the research problem helps the researchers identify exactly what information
is needed to help management in this situation. This is the first step in the marketing
research process.
The third stage of the new-product development cycle is _________.
A.Identify product opportunity
B.Develop the product opportunity
C.Define the product opportunity
D.Define the value proposition for the new product
E.Define the target market for the new product
The new-product development process consists of three main stages – (1) identify
product opportunities, (2) define the product opportunity, and (3) develop the product
opportunity.
An efficient, effective supply chain moves materials from _______ to ________.
A.Wholesaler, manufacturer
B.Consumer, distributor
C.Distributor, manufacturer
D.Retailer, distributor
E.Manufacturer, consumer
An efficient, effective supply chain moves materials from manufacturer to consumer
and retailing is the point of contact in the supply chain with the consumer of the
product.
Serenity was born in 1970. Her parents met at the famous Woodstock festival. She is a
member of the ________.
A.Baby boomer generation
B.GI generation
C.Silent generation
D.Gen X
E.Millennial generation
People belonging to Generation X are born between 1965-1977.
Jenn has recently decided to take a value network approach to create a competitive
advantage over her competitors. She is trying this because __________________.
A.She frees up internal resources
B.Her firm can be more nimble in addressing external uncontrollable opportunities and
threats
C.She has an advantage over firms that have high costs associated with performing
many of the value chain functions
D.A & C
E.A, B & C
The value network approach eliminates many in-house business functions and activities
in favor of focusing only on those aspects for which it is best equipped to add value.
This frees up internal resources of the organization and makes it more nimble.
Intensive distribution is typically associated with _______________.
A.High technology goods
B.Very expensive goods
C.Convenience goods
D.Scarce goods
E.Shopping goods
The very nature of low cost convenience goods makes intensive distribution necessary
so that consumers can see it, feel an immediate want, and purchase it.