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In the ____ stage of new-product development, preliminary demand, cost, sales, and
profitability estimates are made.
a. prototype screening
b. idea generation
c. concept testing
d. post-brainstorming
e. business analysis
Answer:
There are two limousine services that drive customers from communities in North
Georgia to the Atlanta airport. Whenever one reduces its fare, its competitor reduces its
fares by the same amount. This is an example of status quo pricing.
a. True
b. False
Answer:
As products move through the marketing channel, channel members provide
specialization and division of labor, overcome discrepancies, and provide contact
efficiency.
a. True
b. False
Answer:
NewCarPurchase
Zena has been promoted to VP of the management consulting firm where she works..
Her new status has led her to consider the need for a new car. Her trusty little
Volkswagen Beetle has over 100,000 miles on it and no longer seems appropriate.
Susanne, another VP, suggests that Zena consider a car produced in the United States
because the firm has a policy of supporting U.S. businesses. Zena began her quest for a
new car by visiting several car dealers and obtaining pamphlets on the models she is
considering. She also studied ConsumerReportsmagazine, CarandDriverratings, and
other consumer rating publications to see what the experts think. After evaluating all
options, Zena has decided to purchase a new Chrysler. She believes that the car is a
good fit with her new image and position in her company. Since her purchase, she has
seen more advertisements touting the car's features than she ever noticed before. She
also has noticed many models of her car on the road. Zena thinks the fact that so many
others are driving the same model car as hers is proof that she made a good decision.
Refer to New Car Purchase. In noticing similar cars on the road and advertising
supporting her decision, Zena is reinforcing her decision and reducing the doubts she
sometimes feels regarding this purchase. The feelings of inner tension are called:
a. selective retention.
b. perceptual distortion.
c. postpurchase action.
d. cognitive dissonance.
e. response attitudes.
Answer:
Bethany follows several blogs every day and checks into YouTube frequently to watch
the latest videos. She doesn"t have her own Web site, and she almost never makes any
comments on the sites she visits; she just enjoys reading and watching. Bethany would
best be characterized as which type of social media user?
a. Creator
b. Spectator
c. Collector
d. Joiner
e. Inactive
Answer:
____ uses complex mathematical models to help retailers make better product mix
decisions.
a. Inbound telemarketing
b. Data mining
c. Blogs
d. Spamming
e. Online auctions
Answer:
An ad for the new Magnifique perfume by Lancome shows that it can be purchased at
Macy's. This ad is most likely an example of _____advertising.
a. comparative
b. institutional
c. cooperative
d. advocacy
e. strategic
Answer:
In Japan, reciprocity and personal relationships contribute to the development of:
a. global ventures.
b. amae.
c. agricola.
d. keiretsu.
e. an independent network of small retailers.
Answer:
AmericanGirlDoll
The American Girl catalog began as a concept to introduce today's girls to those who
lived in the past. Each historically accurate doll is carefully crafted and dressed and has
books to describe her life. For example, Kristen is an 1854 pioneer girl who is growing
up in Minnesota. Her story begins with her long sea voyage from Sweden. The basic
doll, dressed in a calico dress and striped apron plus the hardcover story of how she got
to Minnesota, costs $90.00. Six more hardback books of Kristen's life are available for
$74.95. Kristen's nightgown costs $20.00, and a matching one for the doll owner is an
additional $38.00. Buy both together and the price is only $50.00. A hand- painted
wooden bed and trunk for Kristen are available for $213.00. Shipping costs vary with
the price of the merchandise ordered.
Refer to American Girl Doll. In terms of the costs of producing the doll and its
accessories, the salary of the graphic designer who does the layout for the American
Girl catalog is a(n):
a. markup cost.
b. variable cost.
c. fixed cost.
d. derived cost.
e. elastic cost.
Answer:
Before Heinz sold its 9-Lives brand cat food unit, the company identified the product as
having a low market share in a high-growth market. The portfolio matrix would classify
9-Lives as a(n):
a. star
b. exclamation point
c. problem child
d. cash cow
e. widow
Answer:
A markdown allowance is a payment to a dealer for promoting the manufacturer's
products.
a. True
b. False
Answer:
The six criteria important in selecting a transportation mode are relative cost, transit
time, reliability, capability, accessibility, and traceability.
a. True
b. False
Answer:
Penetration pricing means charging a relatively low price for a product as a way to
reach the mass market.
a. True
b. False
Answer:
Serenity is a manufacturer of outdoor fountains that are popular in gardens. Even
though fountains represent a product category that does not sell yearround due to
inclement weather, Serenity's sales remain steady all year because it sells to wholesale
distributors that stock the product. Serenity sells to wholesale distributors that
perform functions for the manufacturer.
a. financial
b. transactional
c. facilitating
d. logistical
e. promotional
Answer:
The first step in the marketing research process is to identify and formulate the
problem/opportunity.
a. True
b. False
Answer:
Which of the following factors will influence ethical decision making and judgments?
a. Likelihood of stakeholder responsibility
b. Proactive nature of organizational sustainability
c. Potential magnitude of the consequences
d. Probability of ethical consensus
e. Consequence of adjacencies
Answer:
Warren loves to go to the beach on his vacation but hates to have to worry about the
possibility of hurricanes. As Warren looked for where he should go on vacation this
summer, he consulted a publication called SmartMoney and learned the islands of
Aruba, Bonaire, and Curacao are not in the hurricane belt. Now he will only consider
these island resorts as possible vacation destinations. This group of resort islands is
called Warren's:
a. involvement set
b. evaluative set
c. evolved set
d. evoked set
e. intuitive set
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's _____ is hightech apparel, the packaging it
comes in, and the brand name, company image, and value.
a. product
b. place
c. price
d. promotion
e. position
Answer:
____ are promotional exhibits set up at the retailer's location to build traffic, advertise
the product, or induce impulse buying. They are targeted to consumers.
a. Point-of-purchase displays
b. Freestanding inserts
c. Indirect demonstrations
d. Direct demonstrations
e. Freestanding kiosks
Answer:
Personal selling is more important than advertising and sales promotion if:
a. the products being sold are standardized.
b. there are many customers for the product being sold.
c. the product being sold has a low value.
d. the buyers of the product are extremely dispersed.
e. the products being sold are technically complex.
Answer:
The marketing function that evaluates public attitudes, identifies areas within the
organization that the public may be interested in, and executes a program of action to
gain public understanding is called:
a. public relations.
b. advertising.
c. implicit communications.
d. personal selling.
e. sales promotion.
Answer:
The basic assumption with price skimming is that the firm is customer driven, seeking
to understand the attributes customers want in goods and services they buy and the
value of that bundle of attributes to customers.
a. True
b. False
Answer:
The growth of social media use has resulted in:
a. decreased connection to each other
b. Facebook losing viewers
c. decreased discretionary income
d. more component lifestyles
e. increased exchange of information
Answer:
Since gas prices have soared and consumers have cut back on their spending on new
trucks and SUVs, Ford Motor
Corporation is transforming several of its plants to create small cars. Ford has engaged
in:
a. benchmarking
b. tactical resource realignment
c. alternative selection
d. portfolio evaluation
e. strategic planning
Answer:
The best way a company can increase sales using social media is to improve customer
service.
a. True
b. False
Answer:
Chaz wants to be a pirate like Captain Jack Sparrow in Disney's
Pirates of the Caribbean movies. He wears a bandanna and carries a toy cutlass.
Though Jack Sparrow is fictional, Chaz's role play reveals his ____.
a. superego
b. compliant orientation
c. ideal self-image
d. real self-image
e. socialization process
Answer:
Prices are usually higher in convenience stores than in supermarkets because
convenience stores offer:
a. more specialty goods
b. a wider variety of products
c. a higher level of customer services
d. better location, longer hours, and faster service
e. higher-quality goods
Answer:
The best experiments are those in which one factor is held constant and the other factors
of interest are deliberately manipulated.
a. True
b. False
Answer:
Green is a sign of danger in some countries, so a U.S. firm that sells its goods in those
countries would probably want to avoid using green on its packaging. Which aspect of
packaging is addressed by this issue?
a. convenience
b. safety
c. descriptive labeling
d. aesthetics
e. informational labeling
Answer:
Customer relationship management initially was popularized as ____.
a. one-to-one marketing.
b. a mass marketing approach.
c. total quality management.
d. a customer satisfaction program.
e. a differentiation strategy.
Answer:
A U.S. licensor can try to prevent a licensee from voiding its contract and using what it
has learned to create a competitor by:
a. using lawyers from both countries to write the licensing agreement.
b. insisting that all licensees have a published code of ethics.
c. having the licensee pay a fee for the use of the manufacturing process, trademark,
patent, or other proprietary knowledge.
d. locally registering patents and trademarks to the U.S. firm, not to the licensee.
e. avoiding the use of any patents and trademarks.
Answer:
What is planned obsolescence? Give at least two examples. Is planned obsolescence
ethical, or does it serve a function? Explain your answer.
Answer:
Perhaps the broadest control device available to marketing management is the
marketing audit. Describe this tool and its characteristics.
Answer:
Describe the concept of exchange, and list the five conditions that must be satisfied for
exchange to occur. If all conditions are met, does that guarantee exchange will occur?
Explain why or why not.
Answer:
Marketers use a variety of terms to refer to different age groups. Name several
examples and describe some characteristics of each.
Answer:
What is the CPSC? How does it affect marketing?
Answer:
Describe some specific ways that companies are using the Internet in their public
relations strategies.
Answer:
Several factors affect the choice of promotional mix. Name five of these factors.
Answer:
The first step in the personal selling process is generating leads. Define
lead generation and explain why referral is a superior method for generating leads.
Answer:
One of the most stressful and pressure-filled tasks of the marketing manager is
attempting to set the right price.
Specify three aspects of the current pricing environment in consumer markets that have
contributed to the difficulty in setting correct prices.
Answer:
When a manager is faced with alternative solutions to a problem, he or she should NOT
immediately call for marketing research. The first decision to make is whether to
conduct marketing research at all. Name and briefly discuss two situations in which it is
best NOT to conduct marketing research.
Answer:
Describe survey research and explain how it differs from observation research. Name
six popular forms of survey research.
Answer:
Describe the actions of a company that is referred to as having a customer-centric focus.
Answer:
What is a service? Describe the importance of services to the U.S. economy.
Answer:
What is knowledge management? What type of companies use knowledge
management?
Answer:
Why do marketers study consumer behavior?
Answer:
Name one advantage and one disadvantage associated with using each of the three basic
pricing methods.
Answer:
Define elasticityofdemandand compare and contrast the three types of demand: elastic,
inelastic, and unitary.
What would the demand curve for elastic and inelastic demand look like when graphed?
Answer:
