Heterogeneity of services means the quality of a service may not be consistent.
a. True
b. False
Answer:
Black & Mild FT are the only cigars on the market made with “a skillful blend of
premium pipe tobaccos and a filter tip for extra smoothness.” This feature creates a
competitive advantage for the product.
a. True
b. False
Answer:
This is important because big spenders can be the most profitable customers for a
business:
a. The conversion task
b. The conversion rate
c. The frequency of sales
d. The recency of sales
e. The monetary value of sales
Answer:
In terms of the AIDA concept, sales promotion is most effective at creating:
a. strong desire and purchase intent.
b. positive attitudes toward a brand.
c. awareness of a product.
d. long-term interest.
e. awareness of a product and purchase intent.
Answer:
New-to-the-world products, where the product category itself is new, are also called:
a. discontinuous innovations
b. moderate innovations
c. slow-diffusing products
d. venture products
e. creative offerings
Answer:
AdvancedBionics
Advanced Bionics is a global leader in the development of implantable, high-tech
neurostimulation devices used to treat deafness and chronic pain. Just two-and-a- half
years after introducing its new stimulators, the firm is doing $200 million in domestic
sales. How has Advanced Bionics been so successful? Its success can be attributed to its
outstanding products and to three aspects of its sales approach. First, Advanced Bionics
hired the right talent for its sales force. Companies tend to use experienced sales
repsoften hired away from competing companiesto sell new medical devices. This can
be very expensive since experienced reps generally expect as much as $200,000 in
annual income. So when Advanced Bionics brought its medical device to market, it
hired people with no experience selling medical devices and turned them into sales
reps. Hiring inexperienced salespeople created some problems, however, and the
company experienced high turnover rates during its first two years in operation.
Second, Advanced Bionics provided salespeople with a rigorous training program.
Third, Advanced Bionics allowed salespeople to plan their own activities while
managers monitored their progress and pushed them to improve. In short, the company
has been able to succeed by selecting good people, training them well, and managing
them carefully.
Refer to Advanced Bionics. Personal selling is important for Advanced Bionics
because:
a. its products are standardized.
b. its buyers are not very technologically savvy.
c. the complexity of its products has decreased.
d. its buyers are extremely dispersed.
e. its products are high value.
Answer:
____ shows how much the retailer makes as a percentage of sales after the cost of
goods sold is subtracted.
a. Net income
b. Retained earnings
c. Profitability
d. Net equity
e. Gross margin
Answer:
Marla is a 55-year-old woman who wants to use a social network site to stay in touch
with her son, who is away at college. She also hopes to make contact with some old
high school friends. Which of the following is Marla most likely to use for this
purpose?
a. Last.fm
b. YouTube
c. Facebook
d. Bebo
e. Flickr
Answer:
Which of the following is one of the basic tasks typically performed by promotion?
a. Managing
b. Organizing
c. Rewarding
d. Persuading
e. Perceiving
Answer:
One segment of the business market has primary goals that differ from the ordinary
business goals such as profit, market share, or return on investment. This segment
includes many schools, churches, and civic clubs. Which business market is this?
a. Institutions
b. OEMs
c. Services
d. Providers
e. Resellers
Answer:
Manufacturers know the general price level they can expect when establishing a
product price. This general price is called the base price.
a. True
b. False
Answer:
AppleStores
Apple, Inc. opened its first Apple Store in 2001 and currently has hundreds of stores
spanning several countries. Many of the Apple Stores are inside malls, but Apple also
has several freestanding stores, which they call their flagship stores, with each looking a
little different on the outside. These are located in New York City, Boston, Los Angeles,
Chicago, San Francisco, Montreal, Tokyo, and Osaka.
The store in New York City is a glass cube with a glass cylindrical elevator and spiral
staircase that leads to an underground store. Inside, they have long tables displaying
products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other
accessories. All these products are accessible to customers who can try them out and
ask various questions of informed associates. The walls are mostly metallic, and the
signs are all backlit.
All stores have a Genius Bar where customers can receive technical advice or set up
service and repair for their products. To address the needs of the many iPod users, some
stores, such as the New York store, have set up a separate iPod Bar where customers
can get their own technical assistance. They also have an iMac station for kids who
want to try out games and learning products and a theater for workshops, product
training sessions, and special presentations.
Apple introduced the handheld Easy Pay system where customers don”t have to wait in
line to purchase products. With a simple click of a paperless, handheld credit card
scanner, the employee brings the cash register to the customer. Items can be rung up
anywhere on the show room floor. Apple plans to open several more stores in the years
to come.
Apple also has its online store. At its Web site, a customer can order any Mac or iPod
product, plus a large variety of accessories. In addition to its product offerings, a
customer can watch a demonstration of how products work or check out the latest Mac
ads or news.
Refer to Apple Stores. Apple has the Genius Bar, the backlit signs, the Apple products
themselves, the modern metallic walls and spiral staircases in its stores. These are all
work together to convey the store’s:
a. impression.
b. environment.
c. atmosphere.
d. surroundings.
e. elements.
Answer:
The Solar Group, a Mississippi-based mailbox manufacturer, sells mailboxes to
contractors who are building mega- subdivisions, to hardware stores, and directly to
new homeowners. What kind of products is Solar Group selling?
a. Business products only
b. Both business and consumer goods
c. Installations
d. Consumer goods only
e. Supplies
Answer:
Interface
Interface, a manufacturer of floor covering products, has recently entered into an
agreement with Cargill, Inc. and Dow Chemical Company to develop a carpet
manufactured from corn fiber rather than the traditional nylon. Interface hopes to
develop a biodegradable carpet tile that will be sold to the public at prices only slightly
higher than nylon carpet tiles. Interface’s CEO has repeatedly said the mission of his
company is to look for manufacturing materials that are renewable and not petroleum
dependent.
Refer to Interface. To reduce potential ____, Interface could include a letter in every
box of corn-fiber carpet tiles congratulating the buyer on helping to protect the
environment.
a. cognitive dissonance
b. buyer repentance
c. consumer affectation
d. affective dissonance
e. consumer cognition
Answer:
All of the following factors directly affect the elasticity of demand EXCEPT:
a. a product’s other uses.
b. inputs needed to manufacture the product.
c. availability of substitute goods.
d. price relative to a consumer’s purchasing power.
e. product durability.
Answer:
You are the promotions director for Sunland Farm cholesterol-free eggs. Describe the
steps in the communication process in your promotion campaign, using specific
examples of the actions that will take place in promoting the eggs.
Answer:
Vera ordered the Chihuahua Christmas ornament she saw advertised in the Sunday
coupon supplement by phoning The Danbury Mint and placing her order. In terms of
the communication process, Vera’s purchase was an example of:
a. feedback.
b. noise.
c. implicit communication.
d. channeled communication.
e. message encoding.
Answer:
Lansky sells 60 different knife and garden tool sharpeners. It uses aggressive personal
selling and sales promotions to encourage intermediaries to carry and sell its sharpener.
Lansky is using a push strategy.
a. True
b. False
Answer:
Many children on the autism spectrum like to chew on clothing, paper, or anything that
they can find. Kid Companions manufactures nontoxic, plastic chewable jewelry for
kids to wear. The product is a great way to keep kids from chewing on their clothes,
while letting them work through their chewing tendencies. However, the company is
unsure how to reach parents and therapists with information about their product. This
illustrates a segmentation problem with:
a. substantiality.
b. identifiability and measurability.
c. responsiveness.
d. accessibility.
e. accountability.
Answer:
Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an
extremely high market share, which means customers seek the dealers out regardless of
where they are. There are approximately 50 Caterpillar dealers in the United
States””one in each state. From this information, you can surmise that Caterpillar uses
____ distribution.
a. selective
b. premium
c. intensive
d. exclusive
e. inclusive
Answer:
RapalaVMCCorporation
Finlandbased Rapala VMC Corporation is the world’s largest fishing lure manufacturer.
It developed its first fishing lure””a cigarshaped minnow””in 1962. The annual market
for fishing lures in terms of retail sales is approximately $600 million. Rapala VMC
garnered one-third of that amount in 2008. New lures must be introduced each year in
order to stay competitive in this industry. Like other lure manufacturers, Rapala focuses
on two questions in developing and making new lures: Does it work, and does it look
good? Developing a new lure takes two or three years and involves extensive field
testing by tournament professionals and fishing guides. At the annual fishing industry
trade show in 2008, Rapala unveiled the “dream lure for the 21st century.”
Refer to Rapala. After the trade show, the newest lure made by Rapala will enter which
stage of the new-product development process?
a. Commercialization
b. Idea generation
c. Idea screening
d. Concept testing
e. Product development
Answer:
Which of the following provides the technological link connecting all of the logistics
components of the supply chain?
a. Logistics information system
b. Materials requirement plan
c. EDI
d. RFID chips
e. Distribution resources strategy
Answer:
Due to the time required to scan them, universal product codes (UPCs) are typically
placed on merchandise that would be classified as shopping products.
a. True
b. False
Answer:
AIDA is an acronym for attention, interest, desire, and action.
a. True
b. False
Answer:
In 2012, Apple, introduced iCloud, a cloud storage service that stores users data and
media on remote computer servers so that they can be accessed on multiple devices and
updated from anywhere. Apple is catering to on-the- go consumers who use multiple
platforms. This positioning strategy is based on the:
a. product class
b. price and quality
c. use or application
d. product user
e. competitor
Answer:
Abbeville Press published a book by Armin Brott and Jennifer Ash entitled
TheExpectantFather:Facts,Tips, andAdviceforDads-to-Be. It is an advice book for men
whose partners are expecting a baby. The market for this book is based on
demographics.
a. True
b. False
Answer:
Dillard’s, Target, and Walmart use data mining to determine which products to stock at
what price, how to manage markdowns, and how to advertise to draw target customers.
a. True
b. False
Answer:
A(n) _____ is a limit on the amount of a specific product that can enter a country.
a. quota
b. tariff
c. boycott
d. exchange control
e. transfer limit
Answer:
A tax levied on the goods entering a country is called a(n):
a. license.
b. quota.
c. boycott.
d. exchange control.
e. tariff.
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. James Hardie now makes multiple types of fiber
cement siding products. There are different widths, textures, and profiles. The different
types of siding the company makes are called its product:
a. line.
b. mix.
c. reference point.
d. item.
e. standardization.
Answer:
The Sumatra Coffee Company has two new products. One is a simple hand-cranked
coffee grinder. The other is a combination grinder and brewer that also can be used to
dispense hot milk. Of these two, the hand-cranked grinder will probably be diffused
more quickly because it is less complex.
a. True
b. False
Answer:
The first stage of the new-product development process is:
a. screening and concept testing
b. establishing the new-product strategy
c. exploring opportunities
d. developing a business analysis
e. the building of a prototype
Answer: