Price is best described as:
a. that which is given up in exchange to acquire a good or service
b. money exchanged for a good or service
c. the psychological results of purchasing
d. the cost in dollars for a good or service as set by the producer
e. the value of a barter good in an exchange
Answer:
Campbell’s
Most people recognize Campbell’s as a brand of soup, but Campbell’s also
manufactures Pace Picante Sauce, Pepperidge Farms products, Prego Sauce, Swanson
Broth, and V8 juice. Campbell’s International division offers more than 20 brands of
soups, sauces, beverages, and baked snacks in the Asia Pacific region, Greater Europe
and Latin America. Products such as Arnott’s biscuits and crackers and Bi Band soups
are well known overseas. Campbell’s products are sold in more than 120 countries.
Refer to Campbell’s. If a marketer looks only at the canned soups produced by
Campbell’s and notes the brands and items only within that category, he or she is
analyzing the ___ of the product line.
a. width
b. length
c. depth
d. levels
e. consistency
Answer:
SpecialtyCakes
Imagine that you”re planning an aftersymphony fundraising party, and you need a
lifesize grand piano cake. Or, you are a developer proposing a new shopping center to a
group of investors, and you want to serve a cake shaped like an architectural rendition
of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes.
She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect
to pay anywhere from $75 to $10,000 for one of Cecilia’s artistic creations, depending
on complexity of design and size. She uses only the best ingredients, and no two cakes
are ever quite alike.
Refer to Specialty Cakes. There are many occasions for which people may need to buy
a cake, but most people do not have the time or interest to learn about cakes and their
bakers. These people who do not know about the quality of the Cecilia Villaveces Cakes
might choose them because they:
a. equate price and quality.
b. know cakes are in the mature stage of their product life cycle.
c. realize that this is a monopolistic industry.
d. believe that there is not a relationship between price and quality.
e. desire value-added services.
Answer:
When European demand for a certain solvent declined, Dow Chemical instructed its
German plant to switch to manufacturing a chemical that had been imported from
Louisiana and Texas. Dow Chemical would be best described as a(n):
a. global enterprise
b. global trader
c. cultural marketer
d. exporting company
e. multinational corporation
Answer:
A market is people or organizations that have:
a. the ability, willingness, and power to buy.
b. a medium of exchange and products they desire.
c. needs and wants and an ability and willingness to buy.
d. unmet needs or wants and products or services that satisfy those unmet needs or
wants.
e. communication, financial, and capital resources.
Answer:
The most popular microblog is:
a. Twitter.
b. YouTube.
c. Facebook.
d. Tumblr.
e. Poink.
Answer:
Marketing is defined as producing, promoting, and selling products.
a. True
b. False
Answer:
Which of the following is a common CRM marketing database application?
a. Campaign management
b. Retaining loyal customers
c. Cross selling other products and services
d. Designing targeted marketing communications
e. All of these
Answer:
All of the following are marketing management philosophies EXCEPT:
a. sales orientation
b. societal marketing orientation
c. market orientation
d. profitability orientation
e. production orientation
Answer:
The societal marketing concept considers society’s longterm best interests along with
the satisfaction of customers’ wants and needs.
a. True
b. False
Answer:
Campbell’s
Most people recognize Campbell’s as a brand of soup, but Campbell’s also
manufactures Pace Picante Sauce, Pepperidge Farms products, Prego Sauce, Swanson
Broth, and V8 juice. Campbell’s International division offers more than 20 brands of
soups, sauces, beverages, and baked snacks in the Asia Pacific region, Greater Europe
and Latin America. Products such as Arnott’s biscuits and crackers and Bi Band soups
are well known overseas. Campbell’s products are sold in more than 120 countries.
Refer to Campbell’s. Campbell’s Creamy Chicken Soup could be called a:
a. product mix.
b. product item.
c. product depth.
d. product width.
e. product consistency.
Answer:
Buying a car through eBay may result in a low price, but how do you know you will be
getting a good car? One nice feature provided by eBay is the “feedback rating” that
provides ratings and comments from people who have made purchases from that seller
before. Which service quality component does the feedback rating address?
a. Empathy
b. Assurance
c. Tangibles
d. Flexibility
e. Responsiveness
Answer:
A publicly accessible Web page that serves as an interactive journal is called a tweet.
a. True
b. False
Answer:
One of the leading manufacturers of choir robes has added different types of trim and
fabric in the making of the robes. The company has not changed its prices. This is a(n)
____ modification.
a. style
b. obsolescence
c. quality
d. repositioning
e. upward extension
Answer:
Which of the following is a type of strategic alternative that tries to increase market
share among existing customers?
a. Vertical integration
b. Product penetration
c. Divestment
d. Horizontal integration
e. Market penetration
Answer:
Novartis
Novartis, a Swiss drug maker, is planning to purchase a majority stake in Zhejiang
Tianyuan Bio-Pharmaceutical Company, a Chinese vaccine maker. Novartis has agreed
to pay $125 million for the company, which holds a 3 percent share of China’s $1
billion vaccines market. The market for vaccines is growing 20 percent or more in the
developing nations of Asia, Africa, and Australasia. In the past, vaccine use has been
limited to basic shots against diseases such as polio, tuberculosis, and measles, but as
the economies of these countries grow, government and private healthcare spending
focuses on preventing diseases such as hepatitis B, cholera and rotavirus, tetanus, and
others. Some critics are against the acquisition, claiming that prices will increase.
Novartis claims it is not interested in raising prices but rather in expanding Tianyuan’s
product offerings.
Refer to Novartis. Novartis is creating and maintaining a fit between its objectives and
resources and evolving market opportunities in developing countries. Novartis is
engaging in:
a. strategic planning
b. selective assessment
c. functional planning
d. environment scanning
e. decision analysis
Answer:
Kaplan Construction needs a backhoe for a job, so Donna Kaplan decides to lease the
equipment from Premier Leasing Services. In this case:
a. Kaplan is the licensee.
b. Premier is the lessee.
c. Kaplan is the licensor.
d. Premier is the lessor.
e. Kaplan is the lessor.
Answer:
A team-oriented approach to new-product development is referred to as:
a. simultaneous product development
b. synergistic product development
c. commercialized product development
d. synchronized product development
e. parallel product development
Answer:
State laws that put a lower limit on wholesale and retail prices are called ____ . In states
that have these laws, selling below cost is illegal.
a. unfair trade practice acts
b. price floor laws
c. protectionism acts
d. transparency laws
e. price edicts
Answer:
Advertisers are often concerned with the noise level in a medium. The medium that is
assumed to have the lowest noise level is:
a. radio.
b. television.
c. direct mail.
d. newspaper.
e. magazines.
Answer:
Services tend to exhibit more search qualities than do tangible goods.
a. True
b. False
Answer:
When Burpee Gardening company collects relevant information from customers, such
as date of last communication with the customer and how often the customer contacts
the company, this is an example of:
a. establishing marketing objectives.
b. capturing relevant customer data on interactions.
c. identifying customer relationships with the organization.
d. understanding the interactions the company has with current customers.
e. deciding on a segmentation strategy.
Answer:
The external environment:
a. can be controlled in much the same manner as the internal marketing mix
b. cannot be influenced by marketing managers
c. does not change over time
d. does not have an impact on Fortune 500 companies
e. must be continually monitored by marketing managers
Answer:
Product modification occurs when changes are made in how the product functions, its
quality, or some aesthetic characteristic of the product.
a. True
b. False
Answer:
CincinnatiMuseumCenter
The Cincinnati Museum Center is home to the Cincinnati History Museum, the Duke
Energy Children’s Museum, and the Museum of Natural History and Science. The
Cincinnati History Museum displays materials and related aspects of the history of
Cincinnati and the surrounding region. Costumed interpreters throughout the museum
allow visitors the unique opportunity to make a personal connection with the past. The
educational and dramatic exhibits at Duke Energy Children’s Museum allow kids to
climb, crawl, explore and learn about themselves and the world around them. And the
Museum of Natural History and Science gives children hands-on, inquiry based
experiences in science, technology, engineering and math.
Refer to Cincinnati Museum Center. The museum charges an admission, but only
enough to defray its cost of maintaining the exhibits because it doesn”t have the typical
business goals. Cincinnati Museum Center is an example of a(n):
a. nonprofit organization
b. subgovernment entity
c. unprofitable transaction
d. service-oriented firm
e. social marketing company
Answer:
One of the reasons given for the decline of the passenger rail industry in the United
States is that the industry defined its mission as trains and not as transportation sources.
The railroad industry failed to:
a. define its mission in terms of the benefits its customers seek
b. ignore the marketing concept of serving customer needs and wants
c. realize “customers only want what they know”
d. have a sales orientation
e. empower the consumer
Answer:
Which of the following adopters is MOST likely to become an opinion leader?
a. Luddite
b. Early majority
c. Early adopter
d. Proactive adopter
e. Innovator
Answer:
Sam was driving when someone ran a stop sign and totaled his car. His car cannot be
repaired, so he realized he’s going to have to get another one. What stage of the
consumer decision-making process does this represent?
a. Need recognition
b. Purchase
c. Evaluation of alternatives
d. Postpurchase behavior
e. Information search
Answer:
Delayed-quotation pricing:
a. requires the seller to place a later date on the product invoice to help accounts
receivable in recording transactions.
b. allows the final selling price to reflect cost increases incurred between the time the
order is placed and the final delivery takes place, often over a period of years.
c. prevents the competitor from submitting an earlier bid.
d. requires a seller to submit a bid after the closing date.
e. is also known as price-shading bidding.
Answer:
Each department in a department store is usually treated as a different ____ center and
central management sets broad policies about the types of merchandise carried and
prices.
a. franchise
b. financial
c. comptroller
d. human resources
e. buying
Answer:
When a company uses different brand names for different products, it is using branding.
a. private
b. generic
c. compound
d. family
e. individual
Answer:
The pricing component of the global marketing mix is:
a. the same in domestic and foreign markets
b. fairly simplistic due to the strength of the U.S. dollar abroad
c. the easiest element to implement successfully
d. complicated by product penetration strategies
e. a complex matter due to tariffs, exchange rates, and transportation costs, insurance,
and taxes.
Answer:
Generally speaking, personal selling becomes more important as the number of
potential customers ____ and as the value of the product ____.
a. increases; grows
b. increases; shrinks
c. decreases; shrinks
d. decreases; grows
e. None of the above
Answer:
What are the four basic tasks of promotion? For each of these four tasks, give two
specific promotions examples of how that task might be accomplished.
Answer:
What is relationship integration? Describe a supply chain that has achieved high
relationship integration.
Answer:
What are the three factors affecting channel choice? Briefly discuss how each factor
might influence a company to implement a direct channel of distribution.
Answer:
What is extensive decision making? Discuss the purchase of a product in which you
would use extensive decision making when purchased for the first time and would
require limited decision making in subsequent purchases.
Answer:
Identify the two broad categories of blogs. Which is generally perceived to be more
“authentic”? Why?
Answer:
List the two primary determinants of price. What other factors can affect price setting?
Answer:
Name and briefly describe five of the major differences between business and consumer
markets.
Answer:
There are several federal laws that affect marketing regarding the competitive
environment, pricing practices, and false advertising. Name and briefly describe three
of these federal laws.
Answer:
Compare and contrast Generation Y and Generation X. Which generation is of more
interest to marketers? Why?
Answer:
Distinguish between a cumulative and a noncumulative discount.
Answer:
Define perceptionand describe the three types of selective perception. Use personal
examples in your discussion.
Answer:
Intermediaries must perform three basic functions. Name these functions and describe
the activities involved in each function.
Answer:
A base price may be lowered by a discount. Discounts take a variety of forms and have
several different objectives. Name and define three types of discounts (do not include
allowances or rebates). State the main objective of each type of discount you identify.
Answer:
Name five sources of new-product ideas. Which two techniques are considered the most
useful for generating creative thinking for new-product ideas?
Answer:
Define priceand discuss the two roles price plays in the evaluation of product
alternatives.
Answer: