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For sports marketers, an inelastic demand curve means that they have greater flexibility
in making pricing decisions.
What can a sports marketer do to make demand for his or her product more inelastic?
a. Have a winning team that people want to see play.
b. Sell the rights to buy a season pass.
c. Eliminate all quantity discounts.
d. Use discriminatory pricing.
e. Any of these strategies will help render demand more inelastic.
Answer:
Which of the following is the best description of a podcast?
a. Podcasts are like library card catalogs that users can search electronically to find
information they need quickly and efficiently.
b. Podcasts are like radio shows that are distributed through various means and not
linked to a scheduled time slot.
c. Podcasts are like newspapers that people can upload to their Smartphones and read
anywhere.
d. Podcasts are like calendars that people can use to keep track of the important events
in their lives.
e. Podcasts are like books that users can read directly on their PC screens.
Answer:
The first filter in the product development process is called screening.
a. True
b. False
Answer:
A small chain of supermarkets in the western United States sells only manufacturers'
brands. Which of the following is one of the arguments you could use to dissuade the
supermarket chain owner from selling only manufacturers' brands?
a. A wellknown manufacturers' brand will not enhance the chain's image.
b. Manufacturers rarely spend money advertising the brand name to consumers.
c. Manufacturers can decide to drop a brand or reseller at any time.
d. Manufacturers force the chain to carry a large in-store inventory.
e. Relying on the manufacturer or wholesaler to deliver a national brand quickly is
optimistic at best.
Answer:
Instead of sending artfully arranged flower bouquets, an entrepreneur has developed
fresh fruit bouquets and is marketing them under the name Edible Arrangements. The
premium fruit is cut to mimic flowers, arranged in a basket, and carefully delivered to
the recipient's home. One of the problems is convincing people that it is not a novelty
product, but an attractive way to show how you feel about someone. Edible
Arrangements will be using ______advertising to promote its fruit bouquets.
a. pioneering
b. innovative
c. introductory
d. start-up
e. focused
Answer:
Evan Zimmermann loves watches. He collects vintage Rolex sport models made
between 1950 and 1960. He paid $1,500 for his first watch in 2000. Now the watch is
worth $15,000. For Evan, the vintage watches are an example of a(n) ____ product.
a. specialty
b. consumer
c. convenience
d. business
e. unsought
Answer:
GotMilk?
Just because consumers live in a big city doesn"t mean they can"t have fresh milk right
from the farm. Many dairy farms, such as Oberweis Dairy and Smith Brothers Farms,
offer home delivery of fresh milk, just like in the old days. While some of these services
are established and have been around since the 1920s, New York City"based Manhattan
Milk started up in 2008. For $20 or more, depending on what is ordered, consumers
anywhere in Manhattan can enjoy organic milk, butter, yogurt, and cheese from
Pennsylvania Amish farms and eggs from Vermont. Unlike most store-bought milk,
theirs is not homogenized and is free of hormones typically given to cows to produce
more milk.
Refer to Got Milk? Manhattan Milk has a high ____ quality because its quality can only
be assessed after its use.
a. experience
b. credence
c. cognitive
d. search
e. perceptual
Answer:
Which of the following is LEAST likely to be a factor that would determine the nature
of the promotional mix?
a. Stage in the product life cycle
b. Target market characteristics
c. Funds available for promotion
d. Use of a push or pull strategy
e. Size of the company
Answer:
RockTenn produces cardboard cartons to be used by companies in the food industry.
RockTenn is selling ____ products.
a. specialty
b. consumer
c. business
d. convenience
e. unsought
Answer:
If demand for milk is inelastic, consumers will not change their purchasing habits
greatly when the price of milk changes.
a. True
b. False
Answer:
If a potential customer has objections after the salesperson has made a presentation, that
is an indication that the salesperson has done a poor job.
a. True
b. False
Answer:
Seven employees from a company are trying to come up with ideas for new-product
development. The employees are all in a room together, shouting out potential ideas.
The ideas are written down and evaluated as they are generated. This is an example of
brainstorming.
a. True
b. False
Answer:
Labeling that is designed to help consumers make proper product selections and lower
their cognitive dissonance after the purchase is referred to as:
a. informational labeling.
b. persuasive labeling.
c. cognitive labeling.
d. rational labeling.
e. restrictive labeling.
Answer:
A focus on maximizing the surplus of income over costs is a(n) _____ pricing objective
for service firms.
a. revenue-oriented
b. operations-oriented
c. marketshare"oriented
d. patronage-oriented
e. service-quality
Answer:
For Renovation Remodeling Company, wrenches, drills, and circular saws are all
examples of _____ because they are shown as expenses on the yearly accounting
statements.
a. mobile installation
b. component part
c. processed material
d. supply
e. accessory equipment
Answer:
StarbucksLoyaltyRewards
The first Starbucks opened in 1970 in Seattle, Washington. The demand for its coffee
grew, and Starbucks added more than 6,000 stores located in over 30 countries. In its
more than 30-year history, Starbucks has never given out coupons for its coffee.
Starbucks needed only to make its coffee and customers came. Recently, consumer
quality perception of the Starbucks brand has started to fall. Starbucks started a
consumer response blog to learn more about what consumers expect from Starbucks.
One of the most common requests was for a customer rewards program. In response,
Starbucks started My Starbucks Rewards, which offers free refills on brewed coffee,
free beverage with whole bean purchase, beverage customization, and free Wi-Fi.
Starbucks also put coupons in a national newspaper for those consumers who love
coupons and created a new brew of coffee for those who prefer a milder coffee taste.
Starbucks is hoping that these improvements will restore customers' loyalty and
confidence.
Refer to Starbucks. For more than 30 years, Starbucks held the orientation of "If we
build it, they will come." This philosophy is most in line with a orientation.
a. sales
b. market
c. production
d. societal
e. product
Answer:
All of the following are examples of sales promotion EXCEPT:
a. coupons.
b. transit advertising.
c. free samples.
d. contests.
e. trade shows.
Answer:
An example of product placement is when the judges on AmericanIdolare shown
sipping Coca-Cola during the broadcast.
a. True
b. False
Answer:
AppleiPhone
Apple, Inc.'s iPhone first went on sale on June 29, 2007. Apple's loyal and enthusiastic
customer base is known for rushing to purchase its new products, and the iPhone
enjoyed a tremendous amount of buzz before its introduction. As expected, the iPhone
entered the market at what many believed to be a high price ($599). However, within
weeks, the price was reduced to $399. By the end of 2007, over eight million iPhones
had sold in the U.S. marketplace. By most, if not all measures, the original iPhone was
a huge success for Apple and its then-exclusive U.S. carrier AT&T.
On July 11, 2008, Apple, Inc. released the iPhone 3G, which it advertised as being
twice as fast as the original iPhone for half the cost. However, in order to obtain an
iPhone at the new price of $199, buyers had to agree to a two-year service contract with
AT&T. This approach succeeded, and over a million iPhone 3Gs were sold during the
introductory weekend. In 2011, the iPhone 4Sthe fifth generation iPhoneled cellular
phone sales with more than 25 million units sold. Several Android-based phones
manufactured by Samsung were not far behind, however.
Refer to Apple iPhone. When the iPhone 3G was released at half the cost of the current
iPhone, it appeared that Apple's strategic focus had shifted from maximizing profits to
gaining market share. Its lowered price was consistent with the _____approach.
a. price bracketing
b. penetration pricing
c. price lining
d. price-fixing
e. price skimming
Answer:
Personnel in salesoriented firms tend to be "outward looking," focusing on selling what
the market wants.
a. True
b. False
Answer:
When the Boston Symphony Orchestra wanted to determine how to make classical
music appeal to younger concertgoers, it hired AMN to conduct a survey. AMN is most
likely an example of a:
a. decision support company
b. data mining company
c. field service firm
d. knowledge portal
e. marketing research diagnostics firm
Answer:
Redline Editorial Services sent a $1,000 invoice to a customer for copyediting a
booklet. According to the terms of the invoice, the customer would receive a 3 percent
discount on the invoice price if the invoice was paid within 15 days. This is an example
of a:
a. Quantity discount.
b. Cash discount.
c. Rebate.
d. Functional discount.
e. Promotional allowance.
Answer:
A company wanted to collect data on consumers' perceptions of its new brand. The
marketing research director has recommended using a mail panel operated by Synovate.
What can the company expect from a mail panel?
a. A very high response rate
b. The response rate will be low, as it is for all self-administered surveys
c. The participants are not usually compensated for their assistance, so it will be
inexpensive
d. Data collection is more rapid than with telephone interviews
e. The panel of consumers will meet monthly to discuss products that were sent to them
to try
Answer:
Lanover Manufacturing supplies windshield wiper blades to General Motors and Ford.
A sudden jump in the price of rubber and its substitutes has forced Lanover and other
wiper blades manufacturers to double the price of the blades. This increase in price has
not affected sales volume for wiper blades. The price change did not change demand for
the blades because demand for this product by business customers is:
a. inelastic.
b. secure.
c. bundled.
d. elastic.
e. resistant.
Answer:
DogSpa
Kelly Tumlin wants to open a dog grooming salon that will offer healthy, natural pet
care and holistic pet products. All of the products sold at the salon will be of the highest
quality and made of all-natural ingredients. Tumlin wants to pamper pets just like a spa
pampers its owners. To determine the feasibility of the grooming salon, Tumlin hired a
marketing researcher who studied all the market information available and determined
that single, white-collar workers between the ages of 30 and 60 were the most likely
people to use the services proposed by Tumlin. The researcher also determined that the
West side of the city offers the best location for the enterprise even though zoning
regulations are much stricter in that area.
Refer to Dog Spa. The uncontrollable environmental factors Tumlin faces in terms of
zoning restrictions for the new dog salon represent _____ factors.
a. economic
b. political and legal
c. research and development
d. cultural
e. demographic
Answer:
All of the following are bases for psychographic segmentation EXCEPT:
a. benefits
b. personality
c. motives
d. lifestyles
e. geodemographics
Answer:
Which of the following represents a business unit that shows rapid growth but poor
profit margins?
a. Star
b. Cash cow
c. Problem child
d. Loss leader
e. Dog
Answer:
By keeping the blue triangle in the corner and the Nabisco name on several similar
Nabisco snack products, Nabisco is attempting to capitalize on stimulus generalization.
a. True
b. False
Answer:
Isaac Golding, owner of a tutoring service, has developed a design for his firm that
includes an owl wearing large spectacles and carrying a satchel crammed full of books
and papers. Golding plans to use this design on all communications the firm sends out.
This design is called the firm's brand name.
a. True
b. False
Answer:
