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Corporate Web sites are designed to build customer goodwill, collect customer
feedback, and supplement other sales channels rather than to sell the company's
products directly.
Widespread adoption of the euro has decreased much of the currency risk associated
with doing business in Europe, making member countries with previously weak
currencies more attractive markets.
Sometimes, companies stretch upward to add prestige to their current products.
Marketing mix refers to the set of marketing tools the firm uses to implement its
marketing strategy.
The biggest involvement in a foreign market comes through direct investment-the
development of foreign-based assembly or manufacturing facilities.
For customers, the benefits of direct marketing are being able to shop online anytime
and anywhere.
Using teams of people from sales, marketing, engineering, finance, technical support,
and even upper management to service large, complex accounts is known as team
selling.
Which of the following refers to a probability sample in which the population is divided
into mutually exclusive groups (such as blocks), and the researcher draws a sample of
the groups to interview?
A) quota sample
B) judgment sample
C) cluster sample
D) stratified random sample
E) simple random sample
Which of the following is most likely a true statement about sales compensation in
economically tough circumstances?
A) Cutting sales force compensation is usually a last resort for firms that want to
maintain positive customer relationships.
B) Morale is boosted by distributing commissions equally among low and high sales
performers.
C) Online selling is discontinued to improve customer relations.
D) Compensation for the inside sales force is reduced to increase commissions for the
outside sales force.
E) Low performers are retained and top performers are dismissed to reduce commission
payments.
Macy's department stores carry a wide range of product lines, including clothing,
jewelry, kitchenware, and home furnishings. Macy's typically charges a relatively high
markup, but also holds frequent sales and price promotions, in particular offering
discounts to customers who use a Macy's credit card. Macy's uses ________.
A) self-service retailing
B) experiential retailing
C) high-low pricing
D) everyday low pricing
E) retail convergence
The total production costs at Kellner Machine Works are $87,000 out of which $45,000
represent fixed costs. Which of the following is representative of the variable costs
incurred by the company?
A) $35,000
B) $42,000
C) $45,000
D) $87,000
E) $132,000
Which of the following is being followed as a guiding principle by a company that
produces and heavily markets cigarettes, with many promotions aimed at young
(although legal age) nonsmokers?
A) the philosophy that companies should have a social conscience and be morally
responsible for current and future populations
B) the philosophy that companies can do in good conscience whatever the market and
legal systems allow
C) the philosophy of environmentalism
D) the philosophy of consumer-oriented marketing
E) the philosophy of consumerism
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer
Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the
other, The Landing was an immediate hit with weekend lake visitors and local residents
alike. In the summer, boaters parked at the piers and bought all their fishing needs, such
as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter
months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot
coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a full-fledged residential area. Many of the
houses, which were built as cottages in the 1950s and 1960s, were remodeled into
residential homes. By the end of the 1970s, the days of small motor boats and 10
mile-per-hour speed limits were gone; skiing and fast speed boats became the rage.
Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing
could not compete with larger local retailers. He eventually enlarged the sandwich
counter, transforming the bait shop and grocery into a restaurant with a full menu
typical of any diner.
"Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer
crowd that relied on us for their fishing needs, but we couldn't survive a whole year on
four months of profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became
upscale. "I could see that people were spending more on their speed boats than what
they had originally paid for their cottages!" Casey exclaimed. Many of the cottages
were inherited by children and grandchildren of the original owners. Once again, the
scene started to change as many of the lake houses were used only as weekend lake
homes. Unlike the previous generation, a vast number of the current owners could
afford to live closer to their jobs while maintaining lake homes. "At this point, business
wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing
into a bar with a lounge area. "The change might have been too drastic," Casey said,
"but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces."
Which of the following is the macroenvironmental force that benefitted The Landing
the most?
A) the legal environment
B) the natural environment
C) the economic environment
D) the political environment
E) the technological environment
Railroads were once operated based on the thinking that users wanted trains that would
offer the most in quality, performance, and innovative features. The railroad managing
companies overlooked the fact that there could be other modes of transportation. This
reflects the ________ concept.
A) product
B) production
C) selling
D) marketing
E) societal marketing
From a market point of view, Universal Pictures might see its competition as ________.
A) Paramount Pictures
B) Warner Bros. Pictures
C) Walt Disney Pictures
D) 20th Century Fox
E) Broadway
In routine buying, the buyers are often the ________, or at least the approvers.
A) monitors
B) influencers
C) gatekeepers
D) deciders
E) primary advertisers
In the context of the AIO dimensions for measuring consumers' lifestyles, "A" stands
for ________.
A) activities
B) achievements
C) admirations
D) attitudes
E) associations
Which of the following would be classified as bait-and-switch advertising?
A) advertising a cheaper brand but making only a more expensive one available to
customers
B) advertising the advantages of a product by comparing it to its competitors
C) providing free samples of a product
D) providing discount coupons with a product
E) favoring certain customers over others through trade promotions
The Pure Drug Company produces insulin, a product with a very stable demand. Even
though the price changed several times in the past two years, the demand for Pure
Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is
representative of ________ demand.
A) latent
B) negative
C) inelastic
D) derived
E) composite
Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to
________ other stores.
A) align itself with
B) differentiate itself from
C) cluster with
D) affect the store atmosphere of
E) converge with
________ refers to a measure of the sensitivity of demand to changes in price.
A) Price elasticity
B) Cross-elasticity of demand
C) Elasticity of substitution
D) Marginal utility
E) Income elasticity of demand
Happy Pets, a company manufacturing pet foods and accessories, created a membership
club for its regular customers called "I Love My Pet." This group consists of animal
lovers selected by the company to complete product-related polls, chat with product
developers, and provide feedback about specific products. Which of the following best
describes "I Love My Pet"?
A) primary group
B) immersion group
C) mob
D) dyad
E) triad
Sellers might accept a(n) ________, one whose removal from the country is restricted
by the buyer's government, if they can buy other goods in that country that they need
themselves or can sell elsewhere for a needed currency.
A) blocked currency
B) countervailing duty
C) custom duty
D) anti-dumping duty
E) tariff
Identify three ways that companies can collect secondary data.
Most clients of Second Avenue have learned about the store through word-of-mouth
communication. This small retailer of quality secondhand children's clothing thrives on
the sale of a vast inventory of children's clothing placed there on consignment.
"Because small children grow so quickly," Second Avenue's owner commented, "they
often outgrow many of their clothes before they've hardly been worn!"
Second Avenue provides a way for people to sell their children's clothing, earn a few
dollars, and buy the next larger size. "We're extremely picky about the condition of the
clothing we stock," the owner stated, "but we sell most items at a 60 percent discount."
Second Avenue has just developed a 30-second television ad that features three different
shoppers enthusiastically shopping in the store and appreciating its products. This ad
uses the ________ execution style.
A) slice-of-life
B) technical expertise
C) personality symbol
D) fantasy
E) image
Why is the consumer's field of experience important to a marketer?
Why should marketers set up systems that encourage customers to complain about
products?
Give two examples of products for which marketers might use optional-product pricing.
Distinguish between market segmentation and market targeting.
How can wholesalers improve their use of promotions?
Explain why some critics worry that American multinationals are causing countries
around the globe to lose their individual identities. Give an example of the
"Americanizing" of the world's cultures.
What are the different steps in the selling process? Briefly describe each step.
Discuss direct and indirect exporting. What are the advantages of exporting?
Explain the factors involved in setting international pricing.
Explain the change in buying roles of husbands and wives due to an evolving consumer
lifestyle in the United States. Additionally, describe the effect of this change on
marketers.
