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ClaxtonFruitcakes
One common Christmas tradition in many households is the Claxton fruitcake. The
fruitcake bakery in Claxton, Georgia, makes about six million pounds of fruitcake
annually and has $12 million in sales. One fruitcake batch weighs 375 pounds. About
70 percent of that weight is fruits and nuts. A single batch is divided into 34 loaf
pans that hold 11 pounds each. Loaves are cooked for 100 minutes at 375 degrees. The
bakery can cook 6,000 pounds at a time. During the baking season (August to
December), the bakery uses a tractor-trailer load of raisins each day. The suggested
retail price of a one-pound Claxton fruitcake is $3.69.
Refer to Claxton Fruitcakes. Because demand for raisins to bake into the fruitcakes
does not change on the basis of the price fluctuations of dried fruits, Claxton's demand
for raisins is an example of _____demand.
a. inelastic
b. derived
c. fluctuating
d. elastic
e. joint
Answer:
Which of the following is an example of a product modification?
a. Lowering the price of textbooks
b. Dropping a product from the product line
c. Changing the color of a laundry detergent
d. Changing the amount of management time spent overseeing production
e. Increasing the number of distribution outlets
Answer:
Wellknown retailer Lands' End, offers a written satisfaction guarantee on all
merchandise it sells. In other words, Lands' End gives its customers a(n)___ warranty.
a. implied
b. descriptive
c. limited
d. full
e. express
Answer:
Target shoppers can enroll in the Take Charge of Educationprogram so that Target will
donate 1 percent of purchases made with a consumer's REDcard, a Target credit card.
The more money customers spend, the larger the donation to the consumer's school of
choice. By instituting the Take Charge of Educationprogram to help local schools,
Target has shown a orientation.
a. societal marketing
b. supplier
c. sales
d. production
e. philanthropic
Answer:
All of the following are demand characteristics of business markets EXCEPT:
a. inelastic demand.
b. fluctuating demand.
c. joint demand.
d. stable demand.
e. derived demand.
Answer:
For which of the following situations would a price skimming strategy be most
appropriate?
a. The addition of a new comic book series with a gay protagonist
b. The introduction of a new brand of bottled water
c. The elimination of demand for low-wattage light bulbs
d. The introduction of a unique, roomy automobile model that has extremely low
energy and fuel costs
e. The introduction of a Barbie Olympic champion doll by Mattel and the International
Olympic Committee
Answer:
Target stores sell many premium foods under the name ArcherFarms. This brand can
only be purchased in Target stores and is an example of a(n) _____ brand.
a. manufacturers'
b. international
c. family
d. private
e. corporate
Answer:
When Gillette introduced its Venus razor for women several years ago, it spent $100
million on advertising and other promotions and successfully boosted its market share.
As an advertising consultant, you would advise Gillette to now:
a. double its advertising budget in order to double its market share.
b. maintain the current advertising budget and continue to focus on brand awareness
and market share gains.
c. slowly increase the amount spent on advertising and promotion to offset competitive
advertisements.
d. shift the budget dollars from advertising to sales promotion and personal selling due
to a change in the product life cycle stage.
e. focus on maintaining market share and spend proportionately less on advertising
because additional expenditures would reap diminishing benefits.
Answer:
One advantage of an online focus group is that respondents tend to talk more freely
about issues that might create inhibitions in a face-to-face group.
a. True
b. False
Answer:
Over the years Cadillac has become to be thought of as "your grandparent's car." The
new Cadillac ads showing a beautiful young woman driving a Cadillac along with the
statement, "When you turn your car on, does it turn you on?" This is an example of
marketing designed to help Cadillac as a car for today's younger driver.
a. diversify
b. reposition
c. develop
d. expand
e. display
Answer:
Consider a scenario in which there are five manufacturers, no intermediaries, and four
consumers. Twenty transactions would be required for each consumer to receive
products from each manufacturer. The introduction of one intermediary reduces the
required number of transactions to four and demonstrates the idea of contact efficiency.
a. True
b. False
Answer:
Marcie and Alyssa are going to the football game this afternoon. Alyssa notices that
Marcie is sitting at her computer, and she calls out to ask if Marcie is ready to go. "Just
a second," replies Marcie. "I just want to tweet to everyone where we"ll be." Because
Alyssa knows a lot about social media, she knows that Marcie is:
a. sending e-mail messages to their friends.
b. posting a message on Facebook.
c. leaving voice mail messages on their friends' cell phones.
d. using MapQuest to find out how to get to the football stadium.
e. posting a message on Twitter.
Answer:
ProLog is a firm that specializes in warehousing and fulfilling orders for firms as
diverse as those supplying parts for manufacturers of complicated missile defense
systems to those manufacturing pet-care products. Firms contract ProLog to manage
part or all of their order fulfillment process. ProLog is an example of a:
a. merchant wholesaler
b. retailer
c. distributor
d. third-party logistics firm (3PL)
e. manufacturing flow process manager
Answer:
At The Container Store, every employee is trained to serve customers. Full-time
salespeople receive 240 hours of training. The Container Store works to hire people
who are self-motivated and have a passion for customer service. The Container Store
has a orientation.
a. sales
b. market
c. product
d. societal
e. production
Answer:
Johanna is a loyal customer of The Beanery, a regional coffee shop chain. Whenever
Johanna is found to be within a geofenced area owned by The Beanery, she receives a
message on her iPhone 5S offering her money off a coffee drink at a nearby store. The
Beanery appears to be using:
a. stealth marketing.
b. viral marketing.
c. Micronetworking.
d. Bluetooth marketing.
e. Widgets.
Answer:
Which type of warranty is a written guarantee?
a. Complete
b. Express
c. Implied
d. Explicit
e. Primary
Answer:
____ is the series of decisions advertisers make regarding the selection and use of
media, allowing the marketer to optimally and cost-effectively communicate the
message to the target audience.
a. Promotional implementation
b. Marketing mix planning
c. Media planning
d. Media reach and frequency strategy
e. Media targeted selection
Answer:
Martina was interested in how students perceive the health service provided by her
university. To collect data on this issue, she interviewed the students in her evening
class. Martina has used a random sampling procedure.
a. True
b. False
Answer:
To be useful, marketing objectives should be realistic, measurable, time specific, and
based on sales.
a. True
b. False
Answer:
Nestl
When consumers think of Nestl, they probably think of chocolate. Historically, though,
Nestl's confectionary business is its weakest area. Based in Switzerland, it is the world's
largest food company, with a brand arsenal of Nescaf, Jenny Craig, Perrier, Purina, and
PowerBar, just to name a few of its 30 product lines. Nestl is hoping to become the
"world's leading health, nutrition, and wellness firm" by spending billions of dollars on
research and development of functional foods""foods that have pharmaceuticallike
capabilities to enhance energy and heart, bone, gut, and other health. Nestl wants
consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of
this new focus includes streamlining the product mix by selling underperforming items
or lines that do not fit its new direction. Critics claim that this new focus could hurt the
company's existing brands if the new products fail. Additionally, it may be an uphill
battle convincing consumers that a company known for indulgence is now a wellness
company.
Refer to Nestl. After developing these new, functional products, Nestl will have to
change consumers' perceptions of its brands because it is known for indulgence, not
wellness. Nestl will have to itself.
a. reinvent
b. reposition
c. rename
d. modify
e. standardize
Answer:
A marketing audit helps management allocate marketing resources efficiently.
a. True
b. False
Answer:
John R. Harland Company is best known for printing checks. Its Financial Solutions
division develops software for mortgage companies, which is a growing industry. This
division is currently not producing at the desired level of profitability, but Harland plans
to turn the division into a success by acquiring other companies that develop similar
software. To accomplish this, Harland will be engaging in a strategy.
a. harvesting
b. diversification
c. divesting
d. holding
e. building
Answer:
_____ is the way the advertisement portrays its information.
a. Message execution
b. Appeal formation
c. Focus selection
d. Audience selection
e. Benefit determination
Answer:
Corn refiners buy shelled corn and convert it into a variety of products, including
high-fructose corn syrup. The refiners then sell the syrup to soda and food product
companies for use in foods and beverages. The corn refiners represent the ______
sector of the business market.
a. channel
b. reseller
c. producer
d. government
e. distributor
Answer:
At the Lands' End Web site, a customer can chat online with customer service
representatives while shopping.
This live help allows the customer to have questions answered before placing an order.
This focus on meeting customer needs illustrates a(n) orientation.
a. societal
b. market
c. sales
d. production
e. one-to-one
Answer:
Chantel would like to try a good Mexican restaurant for dinner tonight, so she asks a
couple of coworkers for suggestions. She is using an internal information search.
a. True
b. False
Answer:
____ takes place when a foreign company produces goods to specification set by a
domestic company, with the domestic firm's brand name affixed to the goods.
a. Importing
b. Joint venturing
c. Exporting
d. Contract manufacturing
e. Direct investing
Answer:
In a probability sample, every element in the population has a known statistical
likelihood of being selected.
a. True
b. False
Answer:
____ is the most pervasive retail business in the United States. Consumers get products
out of automated machines, and it accounts for billions of dollars worth of goods each
year in the United States.
a. Automatic vending
b. Party-plan selling
c. Direct marketing
d. A pyramid scheme
e. Professional selling
Answer:
Which of the following events has had the greatest effect on opinion sharing?
a. The growing number of one-child families
b. The increasing number of immigrants from northern Europe
c. The growing number of people on the Internet
d. The increased use of social networking by people and businesses
e. The growing number of people of retirement age who are continuing work
Answer:
____ divides individuals into groups according to the way they spend their time, the
importance of items in their surroundings, their beliefs, and socioeconomic
characteristics.
a. Life cycle segmentation
b. Temporal segmentation
c. Lifestyle segmentation
d. Microsegmentation
e. Macrosegmentation
Answer:
Mary is a stayathome mom who loves to cook. She shares recipes and cooking tips on
her popular blog, What's Cooking with Mary. Because of her blog's popularity, many
food and cookware companies send her products to try, hoping for a good review.
Sometimes Mary even receives money in exchange for a review. Under Federal Trade
Commission regulations, Mary is obligated to disclose any financial relationship she
may have with these companies.
a. True
b. False
Answer:
The Ritz-Carlton hotel chain is renowned for its service and individual treatment of its
customers. All service staff and employees have note pads and are taught to record
every little piece of information they learn about a customer. If a business traveler
ordered soft pillows, only wanted martinis in his mini bar, and needed access to a fax
machine, he would find all of these amenities in his room when he arrived. The
Ritz-Carlton is basing its CRM on which of the following trends?
a. Time Savings
b. Personalization
c. Loyalty Marketing
d. Technology
e. Data Collection
Answer:
A major limitation of the mall intercept interview is:
a. the difficulty of measuring attitudes and opinions.
b. the need to interview people standing up.
c. its high cost relative to in-home interviews.
d. the difficulty of demonstrating new products.
e. the difficulty of obtaining a representative sample of the population of interest.
Answer:
The ___is a process that describes the homework that must be done by a salesperson
before he or she contacts a prospect.
a. pre-sales dialogue
b. preapproach
c. prospect customerization
d. closing preamble
e. sale profiling procedure
Answer:
