The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To
come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets
for a period of four months. In this instance, Sara Lee is the forecasting method of .
a. time series analysis
b. market test
c. executive judgment
d. regression analysis
e. survey
If a certain country considered handshakes in business transactions to be taboo and
preferred to use nodding, this would be an example of differences in forces.
a. cultural
b. political
c. sales
d. sociological
e. regulatory
The primary advantage of automatic vending as a form of retailing is that:
a. it offers a low-cost, personal method of selling products.
b. it provides continuous service to consumers.
c. since vending machines must be serviced frequently, the products they sell are always
fresh.
d. vending machines require very few repairs.
e. it eliminates the need for sales personnel.
During the decline stage of the product life cycle, .
a. sales fall rapidly
b. the sales curve peaks and starts to decline
c. competition is at its peak
d. profits are below zero
e. profits peak and then begin to decline
Scenario 11.1
Use the scenario to answer the questions.
Cheetos Fat-free Crunchies is a product developed through continuous innovation.
Cheetos engineered a technique for making low-fat snacks that taste delicious and also
remain fresh for a longer duration. It introduced Fat-free Crunchies in limited markets
in 2012 and began nationwide distribution in 2013.
About 18 months later, a series of ads by Cheetos’ competitors was aired to
counterclaim that Cheetos Crunchies actually contained 1.5 grams of fat along with
some percentage of preservatives and additives. Research showed that Cheetos
Crunchies was not well-received by certain groups of customers. To retain its consumer
base, Cheetos reduced the remaining fat of Chrunchies to 0 grams, took out the
preservatives, and improved the taste.
Refer to Scenario 11.1. Suppose that Cheetos stops its production of Fat-free Crunchies
and sells all of its remaining inventory to a warehouse club. This would be an example
of a(n):
a. strategy for the maturity phase.
b. phase-out product deletion strategy.
c. immediate drop decision.
d. pull-out product deletion policy.
e. return to test marketing.
A manufacturer can also legally open its own retail outlets.
a. True
b. False
Feedback acquired during the fifth stage of the business buying decision process is kept
on file but not used as a reference for future business purchase decisions.
a. True
b. False
Verizon encourages customers to post reviews on its company website or Facebook
page in the hopes of receiving positive reviews, which would increase the company’s:
a. target market.
b. credibility.
c. size.
d. website size.
e. image.
Manufacturers and retailers are examples of intermediaries.
a. True
b. False
Many services base their success on building a group of satisfied customers who use
their services repeatedly over time. This critical component of success is referred to as:
a. partnerships.
b. heterogeneity.
c. inseparable clientele.
d. perishability.
e. client-based relationships.
Government restrictions on the amount of a particular currency that can be bought or
sold are known as import controls.
a. True
b. False
One of the best ways to overcome a prospect’s objections is to anticipate them and to
deal with them before the prospect has an opportunity to mention them.
a. True
b. False