Deciding to add gel insoles to its running shoes would be a change in the
Nike.
a. price
b. good
c. product
d. promotion
e. distribution
Because we are exposed to so much promotion in our daily lives, and the purpose of
promoting goods is to persuade people to buy them, a common criticism is that
promotion encourages materialism.
a. True
b. False
The brands used for co-branding cannot be owned by the same company.
a. True
b. False
Guess Inc. will be spending $22 million on marketing activities next year and expects to
sell 30 million pairs of jeans.
These 30 million pairs represent the company’s:
a. sales potential.
b. market potential.
c. sales forecast.
d. market sales.
e. selected market.
Brands provide all of the following benefits for buyers except that they do not .
a. foster brand loyalty
b. help identify specific products
c. help buyers evaluate the quality of products
d. offer psychological rewards.
e. reduce perceived risk of purchase
A retailer of Real Dry deodorant prices it at $2.00, while it costs the retailer $1.40.
What is the approximate markup as a percentage of selling price?
a. 3 percent
b. 14.3 percent
c. 30 percent
d. 70 percent
e. 20 percent
Product competitors provide very different products that solve the same problem or
satisfy the same basic customer need.
a. True
b. False
The Federal Trade Commission is solely responsible for establishing and enforcing
packaging regulations.
a. True
b. False
The major forces that make up the consumerism movement are consumer organizations
and business organizations.
a. True
b. False
Which of the following is a full-service merchant wholesaler?
a. Cash-and-carry wholesaler
b. General merchandise wholesaler
c. Drop shipper
d. Mail-order wholesaler
e. Truck wholesaler
Scenario 11.3
Use the scenario to answer the questions.
The YMCA in mid-town Atlanta has recently upgraded its facilities, which includes
construction of a new Olympic- sized swimming pool and a children’s playground. All
locations of the Atlanta “Y” are open from 6:00 am until 11:00 pm, all year round. The
children’s playground is accessible for members alone, and is a fenced and secured area.
During the weekdays, children under the age of 12 can engage themselves in recreation
activities at the playground under supervision, for no additional fee. Additionally,
swimming lessons are conducted for children of all age groups, which are also covered
under the monthly membership fee. The swimming pool is very popular among
professionals who stop by for a swimming workout before or after work.
Many of the YMCA sites are bustling with activities throughout the day; however, the
midtown “Y” is busier during early morning hours and early evenings. At a recent
meeting, Maya Sinclair, its manager, shares her concerns
about getting more people into the “Y” at other times of the day. She asks her staff for
ideas on ways to attract more customers during the off-peak hours. She also declares
that the city of Atlanta has reduced YMCA’s funding for the next year by 20%. This
would require the “Y” to either gain additional members or increase its monthly and
annual membership fees per head.
Refer to Scenario 11.3. The children who take swimming lessons must be present at the
poolside during the time of their appointment. The need for the children to be present in
order to receive the lesson is an example of the feature of a service, while the need for
them to be there at the time of their appointment, represents the
feature.
a. inseparability; heterogeneity
b. heterogeneity; perishability
c. inseparability; perishability
d. intangibility; perishability
e. intangibility; inseparability
When determining markup as a percentage of cost, divide the markup amount by:
a. price.
b. cost.
c. quantity.
d. revenue.
e. 100.
Disney decided to run its new commercials for all of its theme parks several times a day
for three weeks and then not at all for two weeks. It will then run the commercials again
for three more weeks. Disney is using a _____schedule for its advertising.
a. flighting
b. varying
c. continuous
d. pulsing
e. beating
The importance of price depends on the type of product, the type of target market, and
the purchase situation.
a. True
b. False
Todd is developing a print advertisement for Afflac. He knows that the_____is a critical
component of the copy because _____.
a. headline; it determines the final layout design
b. headline; it is often the only part of the advertisement that is read
c. artwork; it takes up the most space
d. tag line; it links the copy to the signature
e. slogan; it links the artwork to the signature
Through marketing newsprint to newspaper publishers and glass manufacturers that use
it in packing, International
Paper Inc. segments its market based on:
a. customer size.
b. psychographics.
c. demographics.
d. use of product.
e. geographic location.
If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to
limit the number of automobiles that could be brought in from other countries,
Germany would be using a(n)_____ .
a. embargo
b. boycott
c. exchange control
d. import tariff
e. quota
Customer surveys as a means of forecasting sales are not appropriate for a firm that has
relatively few customers.
a. True
b. False
If Splenda assesses that its sweetener, ‘œSplenda with Vitamins’, is not meeting profit
expectations and simply allows the product to decline without any change in marketing
strategy, it is using a(n)__________deletion strategy.
a. run-out
b. immediate drop
c. slow-down
d. phase-out
e. drop-down
Identify four consumer and four trade sales promotion techniques, and describe each
one.
What roles do the Better Business Bureau and the National Advertising Review Board
play in self-regulation of business?
Compare and contrast the three major types of purchases made by business customers.
Differentiate between team selling and relationship selling.
What is a store’s image, and how does it affect retailing strategy decisions?