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The two types of shopping products are:
a. unsought and convenience.
b. generic and family.
c. exclusive and intensive.
d. heterogeneous and homogeneous.
e. consumer and business.
Answer:
KitKat
The popular Kit Kat chocolate bar was created by Rowntree's, a confectionary company
in the United Kingdom, in 1935. By the 1940s, Rowntree's was exporting Kit Kats to
Australia, New Zealand, South Africa, and Canada. The brand further expanded in the
1970s when Rowntree created a new distribution factory in Germany to meet European
demand, and established agreements to distribute the brand in the USA and Japan,
through the Hershey and Fujiya companies respectively. In June 1988, Nestl acquired
Kit Kat through the purchase of Rowntree's, giving Nestl global control over the
brandexcept in North America, where it is made under license by the Hershey
Company. Variants in the traditional chocolate bar began to appear in the mid-1990s
and have continued to develop ever since. Kit Kat Japan, in particular, has many unique
flavors such as mango-flavored, cucumber, and wasabi Kit Kats. Today, Nestl produces
Kit Kat bars in 21 countries and has expanded its marketplace in Japan, Russia, Turkey,
and South America, in addition to markets throughout Europe.
Refer to Kit Kat. When Rowntree's, the original manufacturer of Kit Kats, first decided
to enter the global market,
the company used which method?
a. Direct investment
b. A joint venture
c. Exporting
d. Market groupings
e. A contract manufacturing agreement
Answer:
A newspaper ad for a hospital that states, "We have the most modern delivery rooms
and stateofthe art medical equipment," is an indication of which marketing management
philosophy?
a. Sales
b. Customer
c. Market
d. Societal
e. Production
Answer:
A(n) ____allows marketers to track customers' relationships to the company's products
and services.
a. database
b. data profile
c. algorithm
d. byte
e. interaction profile
Answer:
The party in a franchise relationship that is an individual or business granted the right to
sell another party's product is called the:
a. franchisor
b. franchisee
c. receiver
d. renter
e. owner/operator
Answer:
A new-product strategy:
a. links the new-product development process with the objectives of the marketing
department, the business unit, and the corporation
b. is part of an organization's overall marketing strategy
c. specifies the roles new products play in the organization's overall plans
d. describes the characteristics of products the organization wants to offer and the
markets it wants to serve
e. is accurately described by all of these
Answer:
China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about
deforestation, has been praised by environmentalists. The move is hitting hard at the
Japanese, who consume 25 billion sets of wooden chopsticks annually. Almost all of the
chopsticks used in Japan come from China. The requirement for Chinese manufacturers
of wooden chopsticks to pay the 5 percent tax is a ______ factor in their external
environment.
a. competitive
b. social
c. demographic
d. technological
e. legal
Answer:
Rolex watches are very expensive and can only be purchased in high-end jewelry stores
located in large metropolitan areas. Most buyers will accept no substitutes. Rolex
watches are an example of a shopping product.
a. True
b. False
Answer:
The main function of a promotional strategy is to:
a. convince the target customers that a firm's products offer competitive advantages
over those of its competition.
b. find a niche in the marketplace for the firm and its products.
c. provide the firm with research information about the success of its marketing effort.
d. create efficient distribution channels.
e. guarantee control over the length of the stages of the product life cycle.
Answer:
Nabisco has linked seamlessly with its parts manufacturers and outsourced customer
call centers to provide streamlined work processes and a highquality customer
experience. This seamless linking of Nabisco's strategic business units toward a
common vision is an example of ____ integration.
a. relationship
b. social
c. functional
d. hierarchical
e. Material and service supplier
Answer:
Normally, the longest stage of the product life cycle is the stage.
a. maturity
b. growth
c. introductory
d. decline
e. development
Answer:
Pierre's Ice Cream Company produces ultrarich ice cream, which it sells in the
Cleveland, Ohio, area. Last year, it managed to exceed its target return on investment
(ROI) for the current fiscal year. The following results were found on its financial
statements:
What was the actual ROI for Peirre's Ice Cream Company?
a. 6.67 percent
b. 10 percent
c. 22 percent
d. 28 percent
e. 100 percent
Answer:
A marketing channel is a set of interdependent organizations that ease the transfer of
ownership as products move from producer to business user or consumer.
a. True
b. False
Answer:
Which mobile marketing tool allows 160-character text messages to be sent to and from
cell phones?
a. Mobile ads
b. SMS
c. Web widgets
d. MMS
e. MOBI
Answer:
When Wilson, a manufacturer of tennis racquets, sent a team of researchers, designers,
and tennis pros out to visit with 40 women tennis players of various abilities in
locations from California to Florida to find out what women players want in a racquet,
what kind of research were they conducting?
a. Heuristic
b. Primary
c. Cohesive
d. Random
e. Secondary
Answer:
is defined as the relationship between benefits and the sacrifice necessary to obtain
those benefits.
a. Opportunity cost
b. Marketing utility
c. Market quality
d. Satisfaction percentage
e. Customer value
Answer:
The two types of franchising are target market franchising and geographic franchising.
a. True
b. False
Answer:
Generation Y was the hardest hit by the Great Recession.
a. True
b. False
Answer:
Sales promotion offers an incentive to buy.
a. True
b. False
Answer:
Which of the following statements is NOT true about price?
a. Price can relate to anything with perceived value, not just money.
b. Price is that which is given up in an exchange to acquire a product.
c. Price means the same thing to the consumer and the seller.
d. The price paid is based on the satisfaction consumers expect to receive from a
product.
e. Customers are interested in obtaining a perceived reasonable price.
Answer:
When the Mosquito Magnet was introduced, it was designed to rid the immediate area
of mosquitoes and other annoying insects. The technology for the Mosquito Magnet had
taken years to develop. It is a patented grill-like apparatus that emits carbon dioxide to
attract bugs to a fan that draws them into the device where they die. What type of
pricing policy would you recommend the company use to introduce this product to the
market?
a. Status quo pricing
b. Penetration pricing
c. Price skimming
d. Flexible pricing
e. Leader pricing
Answer:
Customers can purchase Hewlett-Packard computers from retail stores like Best Buy
and Office Depot, online directly from HP, and through various catalogs. HP is using
a(n) ___ distribution arrangement.
a. intensive
b. multiple
c. exclusive
d. cumulative
e. aggregated
Answer:
All of the following are necessary for exchange to occur EXCEPT:
a. each party is capable of communication and delivery
b. each party signs a contract before exchange occurs
c. each party believes it is appropriate or desirable to deal with the others
d. each party is free to accept or reject the exchange offer
e. each party must have something the other party considers to be valuable
Answer:
Adaptation is the process by which the adoption of an innovation spreads.
a. True
b. False
Answer:
The various Survivor shows have been promoted through personal appearances by show
participants, Web sites, and merchandise with the Survivor logo as well as print and
broadcast advertising. To make sure that all of the promotional messages are
coordinated, CBS (the network on which the show is broadcast) should use the:
a. integrated marketing communications approach.
b. integrated communications management approach.
c. AIDA concept.
d. interpersonal and mass communications approach.
e. coordinated market management approach.
Answer:
Advertising is impersonal, one-way mass communication about a product or
organization that is paid for by a marketer.
a. True
b. False
Answer:
The four Ps of the marketing mix are product, planning, promotion, and price.
a. True
b. False
Answer:
A manufacturer's or supplier's use of an independent third party to manage an entire
function of the logistics system, such as transportation, warehousing, or order
processing, is called:
a. outsourcing.
b. mediation.
c. intermediary distribution.
d. benchmarking.
e. disintermediaton.
Answer:
Calculate answers for the following scenarios if retailer markups are based on their
selling price:
a. A retailer sells a set of measuring cups for $2.50 after adding $0.50 to the original
cost. What is the markup percentage?
b. The cost of a food blender for the retailer is $40 and the retailer applies a markup of
$60. What is the retail markup percentage?
c. A retailer marks up all products by 20 percent. If a set of glasses costs the retailer
$10, what will be the final selling price?
d. A retailer marks up all products by 75 percent. If the selling price of a set of plastic
bowls is $4, what was the cost to the retailer?
Answer:
_____ research is the study of human behavior in its natural context, involving
observation of behavior and physical setting.
a. Ethnographic
b. Action-based
c. Experiment
d. Survey
e. Visualization
Answer:
If price goes up or down and revenue stays the same:
a. elasticity is universal.
b. elasticity is quantum.
c. elasticity is solitary.
d. elasticity is unitary.
e. None of the above.
Answer:
Once marketing managers have determined a global product and promotion strategy,
they can select the remainder of the marketing mix. However, entry into many
developing nations presents special pricing problems because:
a. the rate of capital accumulation exceeds the rate of population growth.
b. of exchange rate caps.
c. of price discrimination.
d. there is a lack of mass purchasing power.
e. advertising time on television is available for sale in all developed countries.
Answer:
Proctor & Gamble is a well-known producer of home and beauty products. Along with
these products, P&G also markets pet products, prescription drugs, and small
appliances. This range of products provides the company with product:
a. line height.
b. line consistency.
c. mix width.
d. line depth.
e. mix depth.
Answer:
A group of middle school students stop by a bicycle store. The store has just received a
new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to
$3,000. All of the students want one of these new bikes, but none has the means to buy
one. Is this group of consumers a potential market for the expensive bikes?
a. Yes, they are a potential market since they are all about the same age.
b. No, they do not have the ability to purchase at this time.
c. No, to qualify as a market, they must need the product.
d. Yes, they are a market because this product could satisfy their consumer wants and
desires.
e. Yes, they are a market because this group shares relatively similar product needs and
purchasing characteristics.
Answer:
For a firm that adheres to the product concept, the logical place to start generating
new-product ideas is with the customers of the firm.
a. True
b. False
Answer:
