Shark fin soup is a favorite Thai food. When a San Francisco”based organization
claimed that the leading producer’s soup contained mercury poison, its sales
plummeted. The popularity of this soup in Thailand represents a(n)____ factor, while
Thailand’s lax enforcement of environmental protection and consumer
protection regulations are a(n)_____
factor.
a. economic; technological
b. social; technological
c. social; political and legal
d. competitive; economic
e. social; technological
Answer:
Which of the following businesses would be most likely to use family life cycle
segmentation?
a. Those that produce and market computer software and hardware
b. The snack industry
c. Fast-food restaurants
d. Business-to-business marketers
e. Wedding planners, couples-only resorts, and day care centers
Answer:
Boeing is one of the largest aircraft manufacturers in the world. The company sells
aircrafts to airlines around the world, such as Delta, China Air, and AirFrance. You
would expect Boeing to rely on ____to promote its vessels.
a. publicity
b. advertising and sales promotion
c. sales promotion
d. personal selling
e. product innovations and direct marketing
Answer:
Many people surveyed say they are environmentally conscious and favor green
products even if they are more expensive than traditional products. Some marketers are
worried that many people may not actually purchase green products. This concern is
about the potential for what kind of sampling error?
a. Nonresponse
b. Frame
c. Random
d. Measurement
e. snowball
Answer:
Fixed cost contribution equals:
a. price times the average fixed cost.
b. price plus the average variable cost.
c. average variable cost plus average fixed cost.
d. break-even quantity times price.
e. price minus the average variable cost.
Answer:
High purchase prices may create feelings of pleasure and excitement in consumers.
a. True
b. False
Answer:
In-home personal interviews:
a. offer high-quality data at a high cost
b. offer the ability to obtain high-quality data at a low cost
c. are becoming increasingly more popular
d. are less expensive than mall intercepts
e. offer information of moderate quality but at a low cost
Answer:
Which of the following statements about the Internet is true?
a. The Internet has shifted all shopping power to consumers.
b. Consumer reviews tend to be equal in quality.
c. Business-to-business auctions on the Internet are likely to be more important than
consumer auctions in the future.
d. Fraud is not a problem on the Internet.
e. Extranets are programs that search the Internet for the best price for a particular
product.
Answer:
A new salesperson generally receives training in all of the following EXCEPT:
a. company policies and practices
b. accounting procedures
c. product knowledge
d. industry characteristics
e. nonselling duties, such as filling out information reports
Answer:
Organon Teknina sells inexpensive equipment to detect Escherichiacoli, listeria, or
salmonella bacteria in food. The company serves not-for-profit institutions that need to
regularly check food quality. Organon Teknina would be LEAST likely to sell to:
a. The Montgomery County school system.
b. Cincinnati Children’s Hospital.
c. Taco Bell.
d. A chain of church-sponsored retirement homes.
e. American Red Cross emergency shelter kitchens.
Answer:
Chesapeake Energy Corporation was recognized by FortuneMagazineas one of the top
companies to work for. Fortune mentioned that Chesapeake Energy provides its
employees many perks, including the opportunity to take free scubadiving lessons in
Chesapeake’s onsite Olympicsize pool. This example illustrates relationship marketing
in action.
a. True
b. False
Answer:
When the NES Group lowered the price of its professional-grade meat slicers from
$2,300 to $1,125, demand doubled from four units sold per month to eight units per
month. However, total revenue dropped. This is an example of:
a. substitute goods
b. unitary elasticity
c. elastic demand
d. consumer shortage
e. inelastic demand
Answer:
Basketball is played nearly everywhere in the world and is an easily understood sport.
The National Basketball Association (NBA) finals reached more than 600 million
televisions in 195 countries. From this information, you should be able to infer that the
NBA is:
a. developing international selling schemes
b. implementing standard international marketing
c. implementing global marketing standardization
d. supplementing its foreign vision
e. practicing global marketing
Answer:
Mercedes-Benz
Daimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new
line of downsized luxury vehicles in the United States by 2012. Daimler has
experienced a recent drop in global sales attributed to its product mix that focuses on
larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy
standards coming down the pipeline, Daimler doesn”t want to be left behind. Daimler is
behind its competition, though. Its German rivals, Audi and BMW, have been relatively
successful in the United States. BMW’s Mini Cooper, demanding as much as $34,000,
has already driven away with some of Daimler’s potential sales. While Daimler already
offers the Smart car in the United States, the new offerings will not be going after the
same consumers.
Refer to Mercedes-Benz. Daimler plans to introduce the downsized luxury vehicles in
major U.S. cities, such as Los Angeles, New York, Miami, Atlanta, Dallas, and Chicago
because market research has shown that these metropolitan areas have the greatest
potential with respect to the consumers able to purchase a $30,000+ smaller luxury
vehicle. Which type of psychographic segmentation does this represent?
a. Geodemographic
b. Personality
c. Benefit
d. Usage rate
e. Demographic
Answer:
The American Plastics Council wants to stimulate more consumer demand for products
that are packaged in plastic. The ads will be run in consumer magazines and will
hopefully cause customers to ask retailers to carry more products packaged in plastic.
The American Plastics Council is planning to use a(n) _____ strategy.
a. kinetic
b. pull
c. inertia
d. advertorial
e. push
Answer:
Andersen Electronics is currently engrossed in its first estimations of costs and
revenues for a new amusement park video skill game. This firm is engaged in a
new-product business analysis.
a. True
b. False
Answer:
In which of the following situations would a marketing researcher be most likely to use
executive interviews?
a. A manufacturer of extruded plastic wants to determine where there are other markets
for its products
b. A manufacturer of frozen dinners wants to research the eating habits of its target
market
c. The producers of children’s programming on public television want to learn more
about the viewing habits of
an audience composed of 5- to 12-year-old males
d. A shampoo manufacturer wants to test which smells consumers perceive as relaxing
and exhilarating
e. An aluminum can manufacturer wants to research how people are disposing of cans
Answer:
Which type of product modification changes a product’s versatility, effectiveness,
convenience, or safety?
a. Quality
b. Planned
c. Functional
d. Style
e. Use
Answer:
If a business needs a particular good or service and decides to look among its own
customers for a provider of that good or service, the business is:
a. working to create purchase arbitration.
b. opening itself up to prosecution for illegal activities.
c. acting unethically.
d. trying to eliminate derived demand barriers.
e. practicing reciprocity.
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. Which type of consumer buying decision does Zena’s
purchase represent?
a. Routine response
b. Limited decision making
c. Extensive decision making
d. Impulse buying
e. Motivational response
Answer:
____ occurs when a business is defined in terms of goods and services rather than in
terms of the benefits customers seek.
a. Synergy
b. Tunnel vision
c. Narrowcasting
d. Unempowerment
e. Marketing myopia
Answer:
____ is an announcement in mass media for which no charge is made and which
promotes programs, activities, or services of federal, state, or local governments or the
programs, activities, or services of nonprofit organizations.
a. Nonsponsored advertising
b. Public service advertising
c. Societal marketing
d. Cause-related marketing
e. Social advertising
Answer:
Placing advertising messages in Web-based and video games to advertise or promote a
product, service, organization, or issue is known as:
a. embedded message.
b. subliminal advertising.
c. advergaming.
d. blogging.
e. social networking.
Answer:
Frigo Design has developed easy-to-install panel sets to update any refrigerator,
dishwasher, or compactor made since 1942. As Frigo Design plans its promotion for its
new chalkboard panels, which of the following factors will be likely to affect its
promotional mix?
a. Its chalkboard panels are a new product.
b. Its chalkboard panels are targeted to families with school-age children.
c. Its chalkboard panels are easy to install.
d. Its panels fit any refrigerator, dishwasher, or compactor made since 1942.
e. All of these factors will affect Frigo’s promotional mix.
Answer:
Canesta Company has developed a virtual keyboard out of light to be used with cell
phones and PDAs. The product beams an image of a keyboard on a desk, allowing the
user to type on the image. The words are picked up by the user’s digital device. When
introduced to the market, the device will sell for less than $50. What level of
distribution intensity should the company use?
a. Exclusive
b. Controlled
c. Extensive
d. Reciprocal
e. Selective
Answer:
How can technology be helpful as a sales tool?
a. It can cost-effectively process orders and service requests
b. It can free sales reps from tedious administrative tasks
c. It can help to improve the relationship between salesperson and customer
d. It can give salespeople more time to focus on the needs of their clients
e. All of these choices
Answer:
Marketing research has three roles: persuasive, reminder, and informative.
a. True
b. False
Answer:
A firm charging a price identical to or very close to the competition’s price is using a
____ strategy.
a. differentiation pricing
b. penetration pricing
c. preemptive pricing
d. status quo pricing
e. leader pricing
Answer:
Which type of business product represents goods, such as portable tools and office
equipment that are less expensive and shorter-lived than major equipment?
a. Accessory equipment
b. Component parts
c. Processed goods
d. Supplies
e. Intermediate goods
Answer:
Clay Market began as a retailer of terra-cotta pots and garden figures imported from
Turkey and Mexico. It has since added Turkish rugs and fabrics, leathertrimmed purses,
and a line of women’s clothes for its customers. These activities are indicative of a
strategy.
a. vertical integration
b. market penetration
c. diversification
d. product development
e. market development
Answer:
RockTenn
RockTenn produces packaging products. The company makes cartons that will hold a
dozen Dunkin” Donuts, waffle fries for Chik-fil-A, Gillette razors, Haagen-Daz ice
cream, express mail envelopes for FedEx, and much more. RockTenn business
fluctuates depending on consumer demand. As plastic products become more
expensive, companies turn to cardboard and paper to package their products.
Refer to RockTenn. RockTenn makes paper products for companies to use in their
product and service offerings.
RockTenn buys paper, wood chips, and supplies from companies to make its cartons.
RockTenn would be considered a(n):
a. FAQ
b. NAICS
c. OEM
d. NP
e. LOL
Answer:
Products that have had some processing are used directly in the production of other
products, and do not retain their identity in the final product are called:
a. raw materials.
b. supplies.
c. processed materials.
d. component parts.
e. replacement parts.
Answer:
___ provides time utility to buyers and sellers and aids manufacturers in managing
supply and demand.
a. Containerization
b. Distribution
c. Storage
d. Direct sourcing
e. Channelization
Answer:
All of the following are part of a sequence of ‘source, make, and deliver,” EXCEPT:
a. trade promotions
b. production
c. inventory control
d. warehousing and materials handling
e. order processing
Answer:
FederalAviationAdministration
The Federal Aviation Administration (FAA) has been struggling for several years with
antiquated systems, and all it takes is a single failure on one piece of the system to shut
down the entire air-traffic control system for several hours, resulting in significant
snarls at major airports. The most recent failure occurred in the FAA’s core
telecommunications network, called the Federal Telecommunications Infrastructure
(FTI), which is managed by Harris Corporation. Marc Raimondi, a spokesperson for
Harris, said, “The FTI system has proven to be one of the most reliable and secure
communications networks operating within the civilian government.” Snafus like this
have been happening with alarming frequency, prompting Congress to demand the FAA
and its contractors to do more to prevent these malfunctions. The problem is that the
FAA has been using a patchwork approach by updating old systems with modern
hardware and software instead of ordering a complete overhaul of the system. The
FAA’s next generation of modernization will rely on satellite-based networks instead of
phone lines and data cables. The FAA is waiting for White House approval on whether
it will have the funds to take this next step.
Refer to Federal Aviation Administration. The company that wins the contract to
develop the satellite-based system for the FAA will have to purchase satellites and
mainframe computers for this system. These types of products are best described as
which type of business product?
a. Raw materials
b. Processed materials
c. Accessory equipment
d. Business equipment
e. Major equipment
Answer: