Exams

1 Question Which of the following is NOT a criterion used in forming segments? .: Student Answer: Instructor Explanation Competitive position is a reason for selecting a market, not for segmenting it. The five : criteria to be used in forming segments include: (1) potential for increased profit; (2) similarity of needs of potential buyers within a segment; (3) difference of needs of buyers among segments; (4) potential of a marketing action to reach a segment; and (5) simplicity and cost of assigning potential buyers to segments. 2 Question The restrictions placed on potential solutions to problem solving include limitations on time and money available. These restrictions are determined by the problem and are called . : Student Answer: Instructor Explanation Text term definition—constraints : 3 Question A __________ is a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. . : Student Answer: Instructor Explanation Key term definition—market-product grid : 4 Question The quantity consumed or patronage—store visits—during a specific period is called . : Student Answer: Instructor Explanation Key term definition—usage rate : 5 Question There are five steps involved in segmenting and targeting a market. What should a marketer do once he or she has selected a target market and grouped products to be sold into categories? . : Student Answer: Instructor Explanation The steps in segmenting and targeting markets include: (1) group potential buyers into : segments; (2) group products to be sold into categories; (3) develop a market-product grid and estimate size of markets; (4) select target markets; and (5) take marketing actions to reach target markets. 6 Question Determining the size of specific markets using a market-product grid is helpful in determining which target market segments to select and . : Student Answer: Instructor Explanation Even "guesstimates" of the size of specific markets using a market-product grid are helpful : in determining which target market segments to select and which product groupings to offer. 7 Question Market segmentation involves aggregating prospective buyers into groups that have common needs and will . : Student Answer: Instructor Explanation Key term definition—market segmentation : 8 Question Which of the following is a criterion used for selecting a target segment? . : Student Answer: Instructor Explanation There are five criteria used for selecting a target segment—market size, expected growth, : competitive position, cost of reaching the segment (alternative "e"), and compatibility with the organization's objectives and resources. There are also five criteria to use in forming the segments, which are often confused with those used to select segments. To form segments the criteria include potential for increased profit, similarity of needs of potential buyers within a segment, difference of needs of buyers among segments, potential of a marketing action to reach a segment, simplicity and cost of assigning potential buyers to segments. 9 Question The key to successful product differentiation and market segmentation strategies is finding the ideal balance between satisfying a customer's individual wants and achieving organizational __________, the increased . : customer value achieved through performing organizational functions like marketing or manufacturing more efficiently. Student Answer: Instructor Explanation Key term definition—synergy : 10 Question A disadvantage of a(an) __________ is that the marketing research firm needs to recruit new members continually to replace those who drop out. . : Student Answer: Instructor Explanation One disadvantage of panels is that the marketing research firm needs to recruit new : members continually to replace those who drop out. These new recruits must match the characteristics of those they replace to keep the panel representative of the marketplace. 11Question A general rule of thumb among marketing researchers is to use __________ first and then collect _________. Census information to determine the number of families with children under age 5 in its market area. a children's accessory and toy store. especially U. Census Bureau data. Furthermore.S.S. : . This is an example of which criterion used to select target market segments? Student Answer: Instructor New equipment to reach a new market segment relates to Best Foods Company's Explanation resources. 13 Question Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. : Student Answer: Instructor Explanation Secondary data are less expensive and less time consuming. One criterion management wants to use to evaluate potential new geographic .S. uses U. a greater level : of detail is often available through secondary data. 12 Question Red Carpet Baby!. It is using __________ research. Census data that is being used. : Student Answer: Instructor Explanation Secondary data are facts and figures that have already been recorded before the project : such as the U. .. : market segments is whether new equipment must be bought to serve each new segment. the teens were asked about their opinions concerning Watch magazine. such as : product features and advertising. Youth Culture handed out surveys to learn how students felt about the publication. . In the case of Crest. intentions. the same basic formula was . However. . 15 Question Research and media firm Youth Culture published Watch magazine. minty flavor to appeal to adults. a teen publication given out free to high school students. to help consumers perceive the product as being different and better than competing products. Student Answer: Instructor Explanation Questionnaire data are the facts and figures obtained by asking people about their : attitudes. The results from the survey indicated that teen boys and girls demanded very different things from the publication. it was intended for use by children and was therefore given a child-appealing bubblegum flavor. the first fluoride toothpaste. In this case. the change of flavor (a product feature) helped consumers to perceive the product as different as and better than competing products. and behaviors. What is this marketing strategy called? Student Answer: Instructor Explanation Product differentiation involves a firm's using different marketing mix activities.14 Question When Procter & Gamble introduced Crest. Sometime later. : given a fresh. the publication was unable to deliver response rates to coupons or sample offers : that its advertisers expected. awareness. This feedback was the gleaned from __________ data. So. : Student Answer: Instructor Explanation Here the market is small enough and the planning period long and formal enough that : buyers should know with considerable certainty about future contracting. target marketing. Examples would be the pet food aisle or the paper product aisle. she could . how the 80/20 rule is implemented. if you send in the money and a photo of your young niece. For $119 they will make a doll that looks just like a photograph. 17 Question MyTwinn makes dolls that look like young girls. repositioning. synergy. Why would Safeway display . The other alternatives are less practical.16 Question Which of the following forecasting techniques would be most accurate for estimating sales revenues from industrial shippers for the Port of Los Angeles/Long Beach for next year? . : have a doll that is her twin! This is an example of: Student Answer: mass customization. : 18 Question Safeway displays the thousands of items it sells in its supermarket aisles containing related items or product groupings. Instructor Rationale: Mass customization is tailoring goods or services to the tastes of individual Explanation customers at high volumes for a relatively low cost. : product groupings in this manner? Student Answer: Instructor ExplanationFinding a means of grouping the products a firm sells into meaningful categories is as . which helps customers quickly find the product they want. If the firm has only one product or service.: important as grouping customers into segments. Magnavox is using which type of segmentation variable in this example? Student Answer: Instructor Explanation Understanding what benefits are important to different customers (behavioral : segmentation) is a useful way to segment markets because it can lead directly to specific marketing actions. these must be grouped in some way so buyers can relate to them. 20 Question Magnavox sells its target markets many different types of TVs from flat screens to a 20" combination TV/DVD. this isn't a problem. In the case of supermarkets. : set is much less expensive and allows the viewer to watch a DVD without extra equipment. Magnavox uses behavioral segmentation to guide the types of TVs it sells since different consumers have different benefits they seek in a TV set. which helps customers quickly find the product they want. an ad campaign. this isn't a problem. . or a distribution system. 19 Question Safeway displays the thousands of items it sells in its supermarket aisles containing related items or product groupings. In the case of supermarkets. The small . But when it has dozens or hundreds. If the firm has only one product or service. Why would Safeway display . But when it has dozens or hundreds. these must be grouped in some way so buyers can relate to them. such as a new product. The larger sets can be outfitted with surround sound at a higher price than the small set. : product groupings in this manner? Student Answer: Instructor Explanation Finding a means of grouping the products a firm sells into meaningful categories is as : important as grouping customers into segments. it is by aisles with similar products. Examples would be the pet food aisle or the paper product aisle. it is by aisles with similar products. 21 Question Nielsen Media Research collects national TV ratings by using a "people meter. : a listing of all prospective brands and products Student Answer: managerial judgments about how consumers perceive products ratings of an ideal brand’s attributes rank order of the ratings of a existing brand's preference relative to its competitors all of the above Instructor Rationale: To develop a perceptual map. 22 Question Which of the following data are collected from consumers to develop a perceptual map for a particular product? . a New York sales promotion agency." This box is attached to TV sets. how people actually behave is the way : marketing researchers collect observational data—the technique Nielsen Media Research uses. : 23 Question Todd Harris and Associates. and satellite dishes in over 14. VCRs. : commissions. Nielsen Media Research is collecting __________ in this way. judgments of existing brands with respect to these important attributes. three types of data are needed: identification of Explanation important attributes.000 homes across the country. either mechanically or in person. cable boxes. Student Answer: Instructor Explanation Watching. This is an example of what classic concept? Student Answer: the law of inverse proportions . and ratings of an ideal brand’s attributes. : operates the meter when a viewer begins and finishes watching a TV program and transmits the viewing information to Nielsen Media Research. discovered from analysis of its files that one-fifth of its clients accounted for more than three-quarters of its fees and . It has a remote that . : Student Answer: Instructor Explanation Measures of success are criteria or standards used in evaluating proposed solutions to the : problem.the 80/20 rule the survival of the fittest the law of eminent domain the primogeniture rule Instructor Rationale: The 80/20 rule is a concept that suggests 80 percent of a firm’s sales are obtained Explanation from 20 percent of its customers. 25 Question One marketing action that can be taken to sell a single product or service to multiple market segments is . . : Student Answer: Instructor Explanation When an organization produces only a single product or service and attempts to sell it to : two or more market segments. and producing additional versions of the product. engineering. and manufacturing expenses. it avoids the extra costs of developing. the incremental costs of taking the product into new market segments are typically those of a separate promotional campaign or a new channel of distribution. In this case. Hours spent playing with Toy A and Toy B is the measure of success for determining which toy to produce. : 24 Question Which of the following statements represents a possible measure of success in the "define the problem" stage of the marketing research process? . which often entail extremely high research. ” Define the problem. and leather type. which specializes in plus-size fashions for women. Develop the research plan. Take marketing actions. and locate any relevant secondary research. The . . : marketing research process? “To see which is more effective. Motts was using a __________ strategy. mixing and matching design components such as style. Develop findings and recommendations. Explanation information to make a rational. the information will be collected using surveys. and . but the only boots on hand are display models. colors. At first glance. About 100 display boots provide style guidelines. let's distribute questionnaires to current shoppers and solicit their opinions. 28 Question Motts Applesauce used an advertising campaign to change the way consumers thought about applesauce from a dinnertime side dish to a replacement for cooking oil in baking. This is an example of Student Answer: Instructor Explanation Mass customization is tailoring goods or services to the tastes of individual customers on a : high volume scale. The following statement reflects which step in the . In this case. Once customers choose a boot style. informed and relevant secondary research. : advertising message was that using applesauce in baking cuts calories and also makes the resulting baked good healthier. Collect relevant information. There's no inventory for sale. set up some focus groups with plus size teens. focus groups : 27 Question Custom Foot operates six retail locations. then can then select materials. Student Answer: Instructor Rationale: Step 3 in the five-step marketing research process is to collect enough relevant marketing decision.26 Question Penningtons Superstore. offering products for this market in our current stores or opening separate stores targeted directly to the teenage market. wanted to see if it should add a line of plus size junior wear. : customers go home empty-handed—at least initially. and textures. Custom Foot guarantees the boots will be ready within three weeks. none look any different from any basic oldfashioned shoe store. Customers browse the store. color. : 29 Question Heelys sneakers come with an imbedded. detachable wheel in the shoe’s heel. Reebok targets the specific needs of particular types of runners with its different types of shoes (products). . Heelys is practicing __________ positioning. 30 Question Reebok makes shoes with DMX Foam cushioning. Explanation expanding the use of the product from a dinner time side dish to a baking ingredient. . : head-to-head Student Answer: parallel market distinction repositioning differentiation In the sneaker Instructor Rationale: Head-to-head positioning involves competing directly with competitors on similar attributes in involves seeking a Explanation product market niche the same target market. The Premier Trinity KFS shoe is made for street runners who want comfort. In this case. and flexibility. support. This strategy is an example of Student Answer: Instructor Explanation Market segmentation links market needs to an organization's marketing program—specific : marketing mix actions to satisfy those needs. The Trail Exhibition shoe is made with durable cushioning and : rip-resistant mesh for trail runners. business.inDifferentiation positioningand thereby reduce or smaller that is less competitive which to locate a brand.Student Answer: perceptual mapping product positioning product differentiation repositioning psychographics Instructor Rationale: Repositioning is changing a product's image in consumers' minds. : avoid cannibalization. . I think sales will increase next year by 5 percent. Typical marketing objectives are out why a product isn’t selling well. we're going to increase prices across the board by 20 percent. measurable goals the decision maker seeks to achieve in increasing sales and profits. Student Answer: Instructor Explanation a single researcher who asks questions of one respondent conducts individual interviews. “We're increasing TV advertising. These researchers were using __________ to collect data. Student Answer: Discover whether consumers that buy Pampers are aware of gender-specific disposables. All of the above are typical marketing objectives. and finding : 33 Question When a marketing student overheard the following comments.” lost-horse forecast technological forecast trend extrapolation . what consumers are aware of and want. she knew the person who was talking was planning to use a __________. 32 Question Which of the following is a typical marketing objective? . All those things are positive. discovering Explanation solving a problem. : cards with Marine Midland. and adding 3 new product models. Find out why the new line of plus-size clothing is not selling well.31 Question Marine Midland Bank sent market researchers with surveys door-to-door in the neighborhoods of their branch banks to ask people with savings accounts why they did not have their checking accounts and credit . So on balance. But on Student Answer: the negative side. Determine whether to offer a new & improved version of an existing product. Instructor Rationale: Objectives are specific. : sales representatives. : Marine Midland collected information about behavior by discussing the topic with its customers in individual interviews. : Increase sales revenue and profit for Diet Coke. adding some . they are in which stage of the five-step marketing research approach? Student Answer: Instructor Explanation Step one in the marketing research approach is to define the problem. this market would: Student Answer: have no expected growth. would be so small. In terms of the criteria used for selecting a target . When the researchers choose a measure of success to help . New York and watch the children use. be very small. in this case. : segment. when used to forecast sales. its toys. it would not be readily accessible by marketing : 35 Question Researchers at Fisher-Price get children to play at its state-licensed nursery school in East Aurora. be accurately described by all of the above. . not be compatible with the company's current resources. and abuse. starts with the last known value Explanation and makes adjustments from that to arrive at the final forecast. : 34 Question A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident.delphi forecast survey of buyers' intentions forecast Instructor Rationale: A lost-horse forecast. Because it Explanation This market would use the rehabilitation services that the companyprograms. : choosing a measure of success to help determine whether to market old or new toy designs. Instructor Rationale: The market would grow as people continue skiing—although it may be slow growth. now provides. be readily accessible to the firm's marketing programs. : them decide whether to market old or new toy designs. those households headed by persons 50 years of age and over. . You are doing an environmental . Student Answer: Instructor Rationale: Demographic variables are social forces. : scan to help create a five-year marketing plan for the hospital. Explanation represents the fastest growing segment in America. Levi-Strauss markets pre-washed jeans. Which of the following environmental trends should you consider the most important? Student Answer: Instructor The mature market. the need for healthcare services among this group is likely to grow in years to come. : ethnically diverse.1 Question The 2000 Census indicates that the American population is growing older. : Student The Anheuser-Busch Corporation added green colors to its labels Answer: 3M created a new fertilizer for trees. Lowe's and Home Depot have discontinued the sale of wood products from the world's endangered forests. Marketers must observe how these __________ forces are affecting the marketing environment. Explanation : 2 Question You are the director of marketing for Littleton Hospital. In addition. They are concerned with personal : health. and increasingly moving toward western and Sun Belt states. 3 Question Which of the following is an example of green marketing? . Boise Cascade. becoming more . : most innovative communications systems. markets. When a West Coast provider of catastrophic pet .Joe's Lawn Service is offering a special spring promotion. such as a purchase at Amazon." Student Answer: Instructor A mission is a statement of the organization's scope. products.amazon. promote. and values. technology. N. a national pet health-care provider network based in Dover. This statement often identifies its Explanation customers.com. and to deliver superior. : 4 Question Buying a book at www. : 5 Question The __________ for Lucent Technologies is "to provide customers with the world's best and .. : __________ transaction. is Explanation called electronic commerce. . Student electronic commerce Answer: Internet relationship bricks-and-mortar electronic partnering extranet Instructor Any activity that uses electronic communications.J. : 6 Question Jay Bloom's Pet Assure. sustained shareowner value. technologies and customer support. products. Instructor Green marketing includes marketing efforts to produce. : recently took advantage of a rival's naiveté. and reclaim Explanation environmentally sensitive products.com to give as a birthday present is an example of a(n) . Jay Bloom relied on __________ to keep him abreast of his competitors' activities. : school education. Pet Assure found out about its competitors activities by reading a news story in a local paper. wiretapping. 7 Question The Daniels College of Business at the University of Denver offers an outstanding business . theft. In this instance. Student Answer: Instructor Economic espionage is the clandestine collection of trade secrets or proprietary Explanation information about a company's competitors. and violations of written and implicit employment agreements with non-compete clauses. This not only gave him time to add catastrophic benefits to one of his own wellness products. she is offered a high-paying.coverage "pre-announced" the addition of a wellness component (Pet Assure's specialty) in an interview with a tiny community newsweekly. Was this a marketing exchange? Student Answer: Instructor Marketers seek to discover and satisfy the needs and wants of customers. Upon graduating. In this case. Espionage activities include illegal : trespassing. Cali is the customer and Daniels is the marketer. it also got his offering to market first. Demand . 8Question More magazine is a publication designed to appeal to women over the age of 40. The key to Explanation achieving these objectives is exchange--the trade of things of value between buyer and : seller so that each benefits from the exchange. Cali pays the tuition to attend Daniels and earns her MBA with a concentration in Supply Chain Management. This is not illegal and thus the behavior is not economic espionage. leading to a fulfilling career and the school receives tuition used to pay operating expenses so that it may continue to operate. misrepresentation. Bloom was notified immediately through a Web-based news monitoring service. fraud. fulfilling position. six months prior to launching it. the search of a competitor's trash. An exchange occurs: Cali pays tuition and earns her degree. by 1989. What was her discretionary income? Student Answer: Instructor Rationale: Discretionary income is the money that remains after paying for taxes and necessities. Harley-Davidson controlled some 65 percent of the U.S. what was the likely first step in Harley-Davidson's resurgence? Student Answer: . the company won't be able to meet demand for years. and overseas markets. Her state and federal income taxes totaled $24. 10 Question In the 1980s. She was given a six-week all expenses paid . super-heavy-weight market—motorcycles with engine capacity of 850 cubic centimeters or more—collapsed from more than 40 percent in the mid 1970s to 23 percent in 1983. However. such as age and gender—in this case an Explanation aging female population. market.000 for "necessities" such as mortgage. Instructor Social forces include changing demographics.000. food. The company's share of the U.000 for taxes equals $56.. Explanation Therefore. and clothing.000 for discretionary income : . : Student Answer: for such magazines is an example of how __________ forces impact the marketing environment.000 for necessities less 24.S. : 9 Question Emily had an excellent year as a saleswoman in 2005. : vacation by the company for her sales performance that had a value of $9.000=gross income less 17.S.000. She earned $97. and both in the U. She paid $17.000. $97. From a marketing perspective. poor quality and Japanese imports drove the Harley-Davidson motorcycle : company to brink of bankruptcy. Such an analysis would show that the Harley-Davidson motorcycle company had problems in : product quality. a diversification strategy.improving the quality of their product and communicating this to motorcycle buyers Instructor Rationale: Prior to making changes in either product or marketing strategy. and/or reduce the amount of their mortgage. Its primary strength was brand loyalty and brand recognition. Opportunities existed for Harley-Davidson in both domestic and foreign markets.5%. As a result. : from 5% to 6. with home mortgages available . A major threat came from imported motorcycles 11 Question The interest rate has been very low over the last few years. Even though many of these . Student economic Answer: regulatory competitive psychographic legal/regulatory Instructor Economic forces. performance. consumers are able to refinance their homes and use the extra money obtained to pay down credit card or other debt. affect marketing by Explanation providing funds for consumers to use in the purchase of goods and services. These funds : are called disposable income . the firm would have Explanation needed to ascertain its internal strengths and weaknesses and its external threats and opportunities. such as macroeconomic changes in the economy. and marketing strategies. 12 Question Which of the following actions would best illustrate a diversification strategy for McDonald’s (the fast food restaurant)? : Student Answer: Instructor Rationale: The McDonald's toys sold through Toys R Us stores mainly involved selling new Explanation products (toys) to new (toy) customers. __________ forces such as the low level of interest rates can affect marketing by providing funds for consumers to use in the purchase of goods and services. purchase items. "We ignore the rules. the makers of products such as Colgate toothpaste and Ben & Jerry's ice cream both reduced their earnings forecasts. and we let no obstacle stand in your company's way--no matter how bold or impossible your idea may seem. a strength is an internal attribute such as : innovation and marketing know how that can be used to improve the company. and strong demands from powerful retailers for lower prices. At P & G innovation is a key attribute. 13 Question The consumer products industry is one with several large competitors. which also contains dartboards. As a result Colgate-Palmolive Co. They work in one large room. In its promotion. a pool table. . Student Answer: Instructor A threat is an external factor such as soaring raw materials prices and strong demands Explanation from powerful retailers for lower prices. A SWOT analysis for P & G of this information would indicate that the industry situation is a __________ while the invention taking place at P & G is a __________. This is a description of the Internet company's: Student Answer: . 14 Question Lava. and a meditation center. it states.: people may have eaten at a McDonald's restaurant. If you were to walk into the office. Yet Proctor & Gamble. it would be next to impossible to tell the company owners from its lowest ranking employee. .Com is an Internet company that helps other organizations put concepts that they : hope will let them dominate the market in their industry into action. the company leaves the restaurant business and goes into the toy marketing business." The company is composed of eighteen bright young Internet experts. which is a new business for McDonald's. P & G has also used their marketing know-how to develop unique product placements on television shows that highlight its brands. allowing the company to update all 200 of their brands and to invent new products such as Crest Whitestrips that consumers crave. and Unilever Group. soaring raw : materials prices. another consumer products company did not. Instructor A corporate culture is a set of values. 15 Question George Zimmer the CEO of Men's Wearhouse is known to the public as the bearded : company pitchman who sells suits and sport coats on TV declaring. you should know this small appliance line would be classified as a: Student Answer: Instructor Rationale: Cash cows hold a large share of a slow-growth market. : line. the industry is a slow-growth one. "I Guarantee it!" He also says that to be successful. From this information and your knowledge about the BCG portfolio analysis. ideas. Explanation : . and attitudes that is learned and shared among Explanation the members of an organization : . "You've got to have a company that starts with trust and fairness. Black & Decker purchased the line because it needed the cash infusion from a product line that had a dominant market share. Black & Decker purchased General Electric's small appliances product . Since people replace small appliances infrequently and because many are handed down from parent to child." He aims to keep his employees happy and loyal. His philosophy sets the Student Answer : 16 Question Several years ago. General Electric did not know what to do with the line. Explanation : . ." it is . This is an example of __________ forces of the marketing environment. ImageTwin has developed a scanning system with . the president of the company believed it was his duty to remove "the least doubt. exercised __________ when it : recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles.17 Question One reason some people don't like to buy clothing from Internet retailers is the inability to know if the clothes will fit once they have arrived.. The recall cost the company $35 million and $40 million more was lost in sales. All of the information has been fed into a database." Student a corporate value consciousness Answer: mission synergy transactional marketing target marketing stakeholder responsibility Instructor Stakeholder responsibility is the view that an organization has an obligation to those Explanation constituencies. to weigh on the image of the quality and purity of our product.com. 18 Question Source Perrier S. which can affect achievement of its objectives. Now. leave only footprints. Source Perrier was : protecting its customers. as minimal as it might be. Student Answer: Instructor Rationale: This is an example of an innovation developed through engineering. Even though the chemical was not harmful to humans. : which it has gathered the measurements of individuals of all different sizes. when you buy something at LandsEnd. the supplier of Perrier bottled water. you can see a 3D image of what the item should look like on your body.A. 19 Question When Eastman Kodak Company concerns itself with disposal of its film packages in : national parks by promoting the slogan "Take only pictures. But P & G does not see itself as a toothpaste or mop company. 20 Question Superior HomeWorks Referral Network profiles home service companies for homeowners . P & G grew market share in 70% of its businesses because: Student Answer: . and three trade references. manufactures consumer products such as Crest toothpaste and the Swiffer mop. Instead it sees itself as : solving consumer problems with innovative new products. which includes maintaining professionalism and guaranteeing the quality of work. To assure the companies they work with are reliable. In this Explanation case conduct includes maintaining professionalism and guaranteeing the quality of work. 21 Question Procter and Gamble Co.acting in accordance with Student Answer: Instructor Societal marketing is the view that organizations should satisfy the needs of consumers in Explanation a way that provides for society's well-being. they check licenses and insurance coverage. : . Kodak is encouraging national park visitors : to dispose of film packages properly. : looking for a contractor or handyman. Student statement of cultural values Answer: statement of moral reservations rule of engagement code of ethics marketing guide Instructor A code of ethics is a formal statement of ethical principles and rules of conduct. The firm also has to agree to a __________. thus protecting the parks and society's greater wellbeing. their record with the Better Business Bureau. Complaints about the : video game began immediately after its introduction. there would not be complaints like these : . Sustainable development is not limited to : any particular size organization. These complaints ranged from missing parts to incorrect programming. A company that has a 20 percent rate of growth practices sustainable development even if it operates two illegal landfills. 22 Question Which of the following statements about sustainable development is true? : Student A company that always makes its furniture from rare tropical woods is Answer: practicing sustainable development. It would seem obvious that the manufacturer of Xbox video game consoles should adopt __________ goals. In the last three years P & G has updated all of its 200 brands and created whole new product categories that have added $200 billion in sales. Consumers are more likely to buy from a company that has provable sustainable development than one that does not.Instructor Rationale: P & G uses a broad business function of solving consumer problems with innovative Explanation new products to increase its market share. 23 Question Xbox video game consoles were developed through a joint venture between Microsoft and the WWF (World Wrestling Federation) and first marketed in the fall of 2001. : . Consumers don't care whether a company practices sustainable development. Only large international companies can achieve sustainable development. A company that uses child laborers to manufacturer its products in order to stay number one in its industry does not practice sustainable development. Instructor Sustainable development involves conducting business in a way that protects the natural Explanation environment while making economic progress. If quality was present. Student Answer: Instructor Rationale: The manufacturer needs quality goals because it had missing parts and incorrect Explanation programming. . Honda cars are repeatedly the top selling automobiles in the U. and the revenues generated from the sale of these cars will be used to finance the cash-intensive marketing of the new hybrid Civic. and the Accord would be a cash cow. The Civic would be considered a dog. sales of the Civic overtook the Toyota Prius making it the number one hybrid car in the U. is a new competitor in this high-growth market. they are also very expensive to purchase. Due to the overwhelming success of Honda cars.24 Question In 2000. For years Honda experienced tremendous success with their Accords—in fact. The hybrid market is Explanation a high growth market with little competition. and has slightly over half of the market share of this market. From the introduction year 2000. The Civic would be a problem child. The hybrid Civic would be considered a cash cow. The Honda Accord auto is well established in slower-growth markets and control a significant percentage of market share.6%. the Honda Motor Company unveiled the hybrid version of the Honda Civic. . Explanation Coupons and sales are frequently used marketing tactics in an attempt to increase sales : . . Instructor The BCG matrix is based upon market growth rate and market share. the Accord will be a cash cow for Honda.S.S. both the Accords. and the Accord would be classified as a star. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG product portfolio matrix? Student The hybrid Civic would be a classified as a star. and the Accord would be Answer: classified a cash cow. The vehicle will require large injections of cash from other products in the Honda line to maintain or increase market share. a star in the BCG matrix. This is because these catalog retailers operate in: Student pure competition Answer: cross-market competition an oligopoly monopolistic competition a monopoly Instructor In monopolistic competition the many sellers compete with substitutable products. Thus. hybrid vehicles sales have increased over 570 percent with a compound annual growth rate of 88. Only Toyota is a competitor with the Prius. many catalog retailers offer buyers price reductions. : The Honda Civic hybrid. and the hybrid Civics would be classified as cash cows. In 2003. two-for-one buying opportunities and/or free delivery. and the Accord would be classified as a star. 25 Question During the Christmas season. : While the hybrid vehicles are very fuel efficient. : coupons. Wants are a subset of needs. culture. A want is a felt . Student Laws Answer : Ethics Case studies Mentors Ombudsmen . Student Answer : 28 Question Which of the following statement best defines needs and wants? . culture. Needs affect marketing. or personality. By definition. services. 26 Question __________ serve as guidelines on how to act rightly and justly when faced with moral : dilemmas.. and Answer: wants are determined by a person's knowledge. food. : Student Needs occur when a person feels physiologically deprived of something. or personality. or ideas to the prospective buyers. 27 Question A __________ is a plan that integrates the elements of the marketing mix to provide : goods. but wants do not. needs occur when a person feels Explanation physiologically deprived of something such as clothes. Wants occur when a person feels physiologically deprived of something. and needs are determined by a person's knowledge. Instructor Even though not everyone's needs are the same. wants are more socially responsible than needs. or shelter. culture. or individual personality.S. population born between 1965 and 1976. . : and better educated than any previous generation. Explanation They are generally self-reliant. Student Answer : business portfolio analysis marketing strategic planning market segmentation stock market investment 31 Question The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and . In addition. : accessories. The Lemon Tree's management is exploring the use of computerized inventory controls and sales order processing. . supportive of racial and sexual diversity. From this description. or SBUs) as though they were a collection of separate investments. entrepreneurial. They are not prone to extravagance. 30 Question The Boston Consulting Group (BCG) uses an approach to __________ that analyzes a : firm's business units (called strategic business units. because of the high value of the merchandise. 29 Question Generation X consumers are : Student people that like to rely on others Answer: somewhat prone to extravagance poorly educated self-reliant and entrepreneurial not generally supportive of racial and sexual diversity Instructor Generation X includes the 15 percent of the U.: need that is shaped by a person's knowledge. one can infer that the environmental category of least importance to The Lemon Tree is: Student economic Answer: . The keys to its success include knowing the customers' changing tastes and providing something different from other retailers. price competition among firms is not desirable Explanation because it leads to reduced revenues for all producers. . promotion. : off after the trade than before. : form of competition? Student Pure competition Answer: Cross-market competition Monopolistic competition Monopoly Oligopoly Instructor Since there are few sellers in an oligopoly. 32 Question A marketing manager's controllable factors—product. : 34 Question __________ is a trade between a buyer and a seller of things of value so that each is better .Instructor Explanation : regulatory technological competitive social Only regulatory issues are not mentioned in the question . price competition among firms is not desirable in which . price. and place—are the : company's: Student Answer : 33 Question Because there are few sellers. comprehension. and retention is called . : Student Answer: Instructor Key term definition—North American Industry Classification System Explanation : 2 Question A filtering of a consumer's exposure. 35 Question The four utilities are : Student Answer : 1 Question The North American Industry Classification System (NAICS) provides common industry definitions to facilitate the measurement of economic activity for the members of the .Student Answer : . : . : Student Answer: Instructor Figure 6-3 shows that in the alternative evaluation stage purchasing and engineering personnel visit with Explanation suppliers and assess facilities. a filtering of exposure. governments. and financial status. or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others. : Student Answer: Instructor Key term definition—business marketing Explanation : . and retention : 3 Question At which stage in the buying decision process would a firm visit potential suppliers to assess their financial status? . : 4 Question __________ is the marketing of goods and services to companies. comprehension.Student Answer: Instructor Because the average consumer operates in a complex environment. capacity. the human brain attempts to organize and Explanation interpret information with a process called selective perception. quality control. . and knowledge important to a purchase . So. risks. Further. : Student Answer: Instructor Learning relates to habit formation—the basis of routine problem solving. Student Answer : 6 Question Which of the following statements about brand loyalty is true? . Brand loyalty results from the positive : reinforcement of previous actions. : Student Answer: Instructor Key term definition—e-marketplaces Explanation : . a consumer reduces risk and saves time by consistently purchasing the same brand 7 Question Online trading communities that bring together buyers and suppliers are called .5 Question The __________ is a group of persons within an organization who participate in the buying process and share common goals. : decision. there is Explanation a close link between habits and brand loyalty. : Global brands are sometimes tailored to specific cultures or countries.8 Question Customer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are called __________ consumers . deliver the same benefits to consumers. and use consistent advertising across multiple countries and cultures. Global brands have the same product formulation or service concept. : Student Answer: Instructor Key term definition—global consumers Explanation : 9 Question Which of the following statements about global brands is true? . : Student Answer: . 10 Question Which of the following is true of the organizational purchase decision stage? . : Student Answer: Instructor A global brand is a brand marketed under the same name in multiple countries with similar and centrally Explanation coordinated marketing programs. pay for it herself. she is allowed to make her own selection. and delivery terms is likely. Then Megan is taken shopping to select what she wants to buy. performance. Megan's mother suggests she save her money until she has enough saved . Bayer was trying to change beliefs about the extent to which a brand has a specific attribute : . In this way. : to pay for the desired item. : toward aspirin by Student Answer: Instructor Bayer promoted the gentleness of its aspirin to allay consumer concern that using aspirin causes an upset Explanation stomach. Bayer Corporation successfully promoted the gentleness of its Extra Strength Bayer Plus aspirin. When Megan purchases the item. Even after bids for components and assemblies are submitted. and attitudes necessary Explanation to function as consumers : 12 Question To allay consumer concern that aspirin use causes an upset stomach. If the item desired costs more than $5. Two or more suppliers of the same item might be awarded. Megan's mother encourages the development of Student Answer: Instructor Consumer socialization is the process by which people acquire the skills. and engage in interaction necessary with the sales clerk. the period from supplier Explanation selection to order placement to product delivery can take several weeks or even months. further : negotiation concerning price. knowledge.Instructor Unlike the short purchase stage in a consumer purchase. Suppliers who are not chosen are informed why their bids were not selected 11 Question Beth gives Megan $5 allowance a week. Bayer is trying to change the attitude . : the event. consumers are more likely to save their money for a rainy day than buy a concert or theater ticket.) subsidiary or division : 15 Question The university has changed and updated its logo and now finds that it needs to order new stationery and business cards for departments and staff of the university. This .13 Question Concert Staging Company provides the stage. It is typically hired by the organization sponsoring . This example is an illustration of Honda and Toyota practicing : Student Answer: Instructor Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division. : . When the economy slows down.S. Student Answer: Instructor The demand for its services is driven by the sales of tickets to concert/theater Explanation attendees. The number of concert and theater events determines how many times the company gets to provide its services. Demand for the services provided by Concert Staging Company is __________ demand. that use American labor.S. : purchase would be a: . 14 Question Both Honda and Toyota have plants in the U. the roof system. and lighting and sound for outdoor concerts and theaters. Explanation Honda and Toyota are domestic firms (to Japan) that own a foreign (U. the price. and Levi's jeans sell virtually the same product in countries around the world. undoubtedly several people would have to approve the look of the new stationery. Serologicals is an example of a(n) __________ firm. to .S. members of the organization's buying center seek to Explanation change some element of the purchase--product. the only change being the new logo. Those antibodies are used by Serologicals' customers to make drugs to treat rabies. : Student Answer: Instructor The product strategy of selling virtually the same product in other countries is called product extension Explanation strategy. Wrigley's gum. delivery schedule. or supplier. Student Answer: . the changes in the : purchase are usually sufficient to require additional people be included in the buying center. consumers share the same desires. 17 Question Serologicals is a company that extracts antibodies from blood plasma. needs. product extension seems to work best when the consumer market target for the product is alike across countries and cultures—that is. : immunize against hepatitis and to deal with blood Rh incompatibility between a pregnant woman and her unborn child. These are examples of which type of international product strategy? . 16 Question Coca-Cola. As a general rule. This would be a modified because the university is purchasing the same quality paper. It markets its products to international markets the same way that it markets them in the U.Student Answer: Instructor In the modified rebuy situation. While the purchase may resemble a straight rebuy. and uses for : the product. : . : Student Answer: Instructor Problem recognition. is perceiving a difference between a person's Explanation ideal and actual situations big enough to trigger a decision.Instructor Explanation : International firms engage in trade and marketing in different countries as an extension of the marketing strategy in its home country. the initial step in the purchase decision." she was entering which stage of the consumer decision process? . "It's really hard for me to get to class on time without a car. Student Answer: Instructor A country's values are personally or socially preferable modes of conduct or states of existence that are Explanation enduring. 18 Question McDonald's does not sell beef hamburgers in its restaurants in India because the cow is considered sacred by almost 85% of the population. The student's problem is that she would be unable to get to class on time without a car. : respects Indian __________ by not selling beef in India. McDonald's sells the Maharaja Mac made with chicken. McDonald's . This would include the value that cows are considered sacred by most of the population : 19 Question When the marketing student said. Instead. 20 Question Which of the following statements represents an organizational buying decision? . : Student Answer: Instructor Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy Explanation goods and services for their own use or for resale. Organizational buyers include all buyers in a nation except ultimate consumers. Only the owner of a fried chicken restaurant is an organizational buyer; the other : buyers are ultimate consumers. 21 Question Tricon was the restaurant division of PepsiCo until it was spun off several years ago. Since then Tricon has opened 6,000 KFC restaurants abroad. It has 158 in Indonesia and more than 500 restaurants in China. All . : are locally owned, and the owner pays a fee to Tricon. Tricon is engaged in Student Answer: Instructor Tricon has given the local restaurant owners the benefit of its patents, trade secrets, etc., and the owners pay Explanation Tricon a licensing fee. : . 22 Question An ad for Conesco's life insurance asks the question, “How do you plan on supporting your family after you pass away?” The ad shows a tombstone with a sign that offers : the face of the stone as ad space. The ad is intended to appeal to which of the needs in the hierarchy of needs? Student Answer: Instructor Safety needs involve self-preservation and physical well being. Providing security for Explanation one's family would help to satisfy that need : 23 Question Mars, America's second-biggest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top selling candies in Russia and is marketed in much the same way as it is in the . : United States. Mars is most likely a(n) __________ firm Student Answer: Instructor International firms engage in trade and marketing in different countries as an extension of the marketing Explanation strategy in its home country. : 24 Question You want to buy some dry breakfast cereal, and you are in the mood for unsweetened flakes. The store you go to has three cereals of this type: Post Toasties, Kellogg's Corn Flakes, and General Mills' Wheaties. You . : are familiar with and like each of these cereals, so you decide to choose Kellogg's Corn Flakes. Collectively, what is this group of cereal brands called? Student Answer: Instructor A consideration set is the group of brand that a consumer would consider acceptable from among all the Explanation brands in the product class of which he or she is aware. In this case, the consumer is familiar with and considers acceptable the three cereal brands from Post, Kellogg's, and General Mills that constitute the : consideration set. 25Question Through repetition in advertising, messages such as "Advil is a headache remedy" attempt to link a brand (Advil) and an idea (headache remedy) by showing someone using the brand and finding relief. This ad . : Student Answer: makes use of what type of learning? Instructor Cognitive learning involves making the connections between two or more ideas (Advil and headache Explanation remedy) or simply observing the outcomes of others' behavior and adjusting your own accordingly : 26 Question The Chinese textile industry issued a statement recently opposing a U.S. government agency's acceptance of an industry appeal to limit imports of Chinese fabric products. In other words, the U.S. government will limit . : the amount of Chinese fabric that can be imported into the U.S. This is an example of a Student Answer: Instructor A quota is a restriction placed on the amount of a product allowed to enter or leave a country Explanation : 27 Question Organizational buying behavior . : Student Answer: Instructor Organizational buying behavior is the decision-making process that organizations use to establish the need Explanation for products and services and to identify, evaluate, and choose among alternative brands and suppliers. There are important similarities and differences between consumer and organizational buying behavior. The five : stages of the organizational buying process also apply to consumer buying. More individuals are involved, supplier capability becomes more important, and the postpurchase evaluation behavior is more formalized when organizations buy 28 Question It is time for the Ramirez family to plan its annual vacation. The father wants to stay home to save money. The paternal grandmother who lives with them wants to visit relatives in New York. The father asks his . : mother to determine how much a trip to New York would cost and if they could stay with relatives while they were there. The wife and the daughter want to go to the beach. Which sentence BEST describes the roles each family member played in this decision? Student Answer: Instructor The grandmother acted as an information gatherer, influencer, and user. The father acted as a decision maker Explanation and user. The wife and daughter played the roles of influencers and users. : 29 Question A __________ is a situation where products are bought in a lower-priced country from a manufacturer's authorized reseller, shipped to higher-priced countries, and sold through unauthorized retailers below the . : manufacturer's suggested retail price. Student Answer: Instructor Gray Market definition. Explanation : 30 Question Mary was thrilled to begin her new job after she graduated from college. Which of the following purchases that she made the day before she begins her new job would most likely have the greatest perceived risk for . : social Explanation clubs. it must select a global market entry strategy based on its profit potential (lower to higher) and the amount of financial commitment. the risk of physical harm. Examples of negative consequences include the size of the financial outlay required to buy the product. including fraternities and sororities. and marketing . the performance of the product. it may be that her new coworkers will think she is not dressed correctly for the job . : 32 Question When a company has decided to enter the global marketplace. 31 Question Students who wear sweatshirts displaying the Greek letters for fraternities or sororities to which they belong are demonstrating pride in a(n) __________ group : Student Answer: Instructor A membership group is one to which a person actually belongs. risk. and the family. In this case. : control the firm desires (least to most). Position "B" in Figure 7-3 is best identified as Student Answer: Instructor Licensing has a moderate amount of profit potential and risk Explanation : .her? Student Answer: Instructor Perceived risk is the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but Explanation believes there may be negative consequences. and : the psychosocial risk that friends won't approve the purchase. primarily Explanation serve to raise prices on imports. 34 Question If you wanted to set up a business importing amber from Latvia to the United States.S.33 Question KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. Walgreen’s. she remembered that she had found some poster board at three stores: her local 99 . Customs Service roughly 20 percent of the : value of the product as a: Student Answer: Instructor Tariffs. you would have to plan on paying the U. : 35 Question When an elementary school teacher needed to buy poster board for her class. which are a government tax on goods or services entering a country. and at her Family Dollar Store. This is an example of which type of international product strategy? . What term best describes the information search method used by the teacher? . : Student Answer: Instructor Changing a product in some way to make it more appropriate for a country's climate or preferences is a Explanation product adaptation strategy : . : Cents Only store. : 1 Question As product adopters.Student Answer: Instructor When a person scans his or her memory for previous experiences with products or Explanation brands. he or she is engaged in an internal search. Laggards have a fear : of debt and neighbors and friends are their information sources. : Student Answer: Instructor Explanation Figure 11-4 provides profiles of five categories of product adopters. laggards typically . 2 Question Consumer products are defined as . : Student Answer: Instructor Explanation Key term definition—consumer products : . : Student Answer: Instructor Explanation Early majority adopters and late majority adopters each consist of about a third of the total : population that will adopt a new product at some point during a product life cycle. : Student Answer: Instructor Explanation Major benefits of packaging are the information conveyed to consumers.3 Question Packaging is . 5 Question Packages create customer value by providing . and the perception created in the consumers' minds. . its functional : benefits such as protection or storage. : Student Answer: Instructor Explanation Key term definition—packaging : 4 Question The largest numbers of product adopters with respect to the diffusion of innovation are found among . : to a product early while others buy it only after they see their friends with the product is called Student Answer: Instructor Explanation Text term definition—diffusion of innovation : 7 Question The terms continuous innovation. and discontinuous innovation. are classifications based on . : 8 Question Effective marketing for a product that is considered to be a continuous innovation depends on . : Student Answer: Instructor Explanation A way to define new products is in terms of their effects on consumption. The shapes of life cycle curves indicate that most sales occur after the product has been on the market for some time. dynamically continuous innovation. This approach classifies new products according to the degree of learning required by consumers.6 Question The life cycle of a product depends on sales to customers. : Student Answer: . The concept that some people are attracted . : Student Answer: Instructor Explanation Text term definition—shopping products : 11 Question Even though Liquid Paper correction fluid is in the __________ stage of the product life cycle. organizations attempt to reduce inconsistency through standardization and training. 10 Question The type of product for which the consumer compares several alternatives on such criteria as price. or style is a(n) . Gillette has not deleted it from its line because there is still a . quality. 9 Question Organizations attempt to reduce the inconsistency of service delivery through .Instructor Explanation Effective marketing for a product that is considered to be a continuous innovation depends : on generating awareness and not completely reeducating customers. : . : Student Answer: Instructor Explanation Whether the service involves tax assistance at H&R Block or guest relations at the Hyatt : Regency. It is one of two choices in the decline stage of the product life cycle.residual core of consumers who use the product. See also Figure 10-2. 13 Question Several years ago a new consumer product was developed—frozen iced tea on a stick. What was the most likely reason the product failed? . (5) poor product quality. all are people-based services. (4) poor execution of the marketing mix. (6) not satisfying customer needs on critical factors. (2) : incomplete market and product definition before product development starts. The product was a failure. (7) bad timing. (3) too little market attractiveness. Student Answer: Instructor Explanation : Rationale: Dropping a product from a company’s product line is called product deletion. : Student Answer: Instructor Explanation The security guard is unskilled labor. and a management consultant have in common? . a plumber. and (8) no economical . 12 Question What do a security guard. the plumber is skilled labor. and the management : consultant is professional labor. : Student Answer: Instructor Explanation The reasons why new-products fail are: (1) insignificant point of difference. . available at only a few selected : dealers. The market for frozen iced tea on a stick apparently was simply too small. : Student Answer: Instructor Explanation A Lexus LS 400 luxury automobile is very expensive.access to buyers. and a reintroduction as part of its . promoted on the basis of uniqueness and status. a decline. 15 Question Which of the following products is the best example of a product that might experience an introduction. thus fitting the definition of a specialty product. and is purchased very infrequently with extensive time and effort regarding the decision process. 14 Question Which of the following is the best example of a specialty product? . Fashion products are most likely to experience the product life cycle described in the question. : normal product life cycle? Student Answer: Instructor Explanation : Rationale: Women's and men's clothing are most likely to be fashion products. lawn mowers. Every time she has the opportunity. 17 Question When Thelma got her drive-thru order at the fast-food restaurant. Student Answer: . : demeanor. an automated carwash. she says something derogatory about the restaurant because she does not distinguish the service deliverer (the employee who prepared her food and gave it to her) from the service itself (the fast-food restaurant). and a limousine service have in common? . Frontier Airlines uses personable animal characters in its advertising.16 Question What do a landscaping service. : Student Answer: Instructor Explanation : Rationale: The landscaping service requires trucks. 18 Question To help consumers assess and compare its airline services. The food was good but was overshadowed by the clerk's . and trimming and pruning equipment. Thelma is having a problem with which unique characteristic of services? Student Answer: Instructor Explanation The inseparability of services means consumers cannot separate the service from the : deliverer of the service. The carwash required equipment. she thought the employee who took her money and gave her order was cold and unfriendly. : the __________. thus helping to deal with . as does the limousine service. or seen before the purchase decision process. . touched. 20 Question Mr. they can't be held. Clean is an antibacterial cleaning liquid for home use. and (8) no economical access to buyers. but they didn't. Consumers were supposed to snack on them dry. (2) : incomplete market and product definition before product development starts. Frontier Airlines sells perishable and intangible transportation from one point to another and tries to make the service more tangible with the personable animals shown in their advertising campaigns. 19 Question Several years ago. or Cheerios from the box. What was the most likely reason the product failed? Student Answer: Instructor Explanation The reasons why new-products fail are: (1) insignificant point of difference. Clean to the Mr. a sweetened cereal flake about the : size of a corn chip. (6) not satisfying customer needs on critical factors. (7) bad timing. would be . that is. Clean believed the addition of Sparkling Apple-Scented Mr. The manufacturer of Mr. : Student Answer: . To help consumers assess and compare services. Clean product line. The point of difference was not important enough to get the consumers to give up eating competing snacks such as potato chips. (3) too little market attractiveness. (4) poor execution of the marketing mix.Instructor Explanation : Rationale: Services are intangible. marketers try to make them tangible or show the benefits of the service. General Mills introduced Fingos. (5) poor product quality. : several nights a week. At this point in time the nighttime televised game show entered which stage of its product life cycle? Student Answer: Instructor Explanation : Rationale: The growth stage is characterized by the appearance of competitors . Once the show became a hit and televised . As a new: product item. 22 Question A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades.Instructor Explanation The FTC suggests that the term new be limited to six months. other networks quickly created their own version of what they hoped to be a successful game show format. . The product is not a discontinuous innovation because consumers will not have to learn entirely new consumption patterns to use the product. Greed and TwentyOne are the names of but two of the new shows that were created to compete with Who Wants to Be a Millionaire. it would have a new SKU (stock keeping unit). 21 Question The General Mills Betty Crocker brand of Original Supreme brownie mix with Hershey’s chocolate is branded using which strategy? : Student Answer: Instructor Explanation : Rationale: Co-branding is the pairing of two brand names of two manufacturers on a single product. In what stage of the product life cycle is this product category? Student Answer: Instructor Explanation : Rationale: At the introduction stage there is very slow sales growth. : previously visited websites quickly. or seen before the purchase decision.com introduced a new Web browser that can be easily customized to do what you want it to do—such as suppress all pop-up ads and retrieve . and the key promotional objective is to try to inform consumers of the product's existence. Opera is spending a lot of money to make potential consumers aware of the existence of a Web browser that can be customized. Sales have been slow to rise over the past year. they can’t be held. . little or no profitability.23 Question Sarah has a backache due to overexertion. : a massage unlike a pair of shoes cannot be felt before she buys it. Which characteristic of services is she concerned about? Student Answer: Instructor Explanation : Rationale: Services are intangible. that is. 24 Question Opera. She is concerned because . touched. and profit has yet to be achieved.Interactive television with video on-demand capabilities will change how people watch television and how consumers access the Internet. She believes a massage would loosen her back muscles and make her feel better. With the Vespa . : Student Answer: . the image is more likely to be a brainy environmentalist that wears polyester and socks that don't match. This perception is important because of which unique characteristic of services? . the image of a masculine. and it is logical : that increased consumer trial will lead to increased adoption.. nonconformist is the likely associated with that brand name. 26 Question When consumers think of Harley-Davidson. Both Vespa and Harley-Davidson: Student Answer: Instructor Explanation : Rationale: Brand personality is a set of human characteristics associated with a brand name. : motorscooters. 27 Question The FedEx brand suggests the possibility that it is government sanctioned and fast. 25 Question Why would the manufacturer of a new all-natural ingredient shampoo and conditioner put free samples of the product in Sunday newspapers? : Student Answer: Instructor Explanation Free samples are one of the most popular means to gain consumer trial. 28 Question During a recent shopping trip to the local Target store. pet foods. that satisfy a class of needs. or are purchased by the same customer group. A product mix includes all the product lines offered by a company. the brand name or identifying logo of the organization : is particularly important in consumer selection because it is more difficult to describe what is being provided. Pat noticed several things. all of the product groups together constitute Target's __________. including toys. Therefore. which was made so that it was not necessary to precook the pasta before blending pasta. Pat noticed Target offered an array of different products within each product group. health and beauty aids. are used together. and more. automotive products.Instructor Explanation Services are intangible. Student Answer: Instructor Explanation : Rationale: A product line is a group of products that are closely related. Legally. : products. this product would only be . are distributed through similar outlets. small household appliances. she noticed that the store offered a tremendous variety of . 29 Question Prego recently introduced a Pasta Bake Sauce. and cheese in a casserole. First. sauce. and children. : considered new Student Answer: Instructor ExplanationThe FTC suggests that the term "new" be limited to six months after the product enters . women. meat. Each product group at Target is an example of a(n) __________. clothing for men. Further. luxury packages (pricing). toll-free information lines. This is an ." 30 Question Sara Burns is the owner of a company called The Spice is Right and was looking for a new-product to go with her company's line of food condiments when a customer suggested combining spices with tea. and competitors. suppliers. : example of Student Answer: Instructor Explanation Good ideas can originate almost anywhere.: regular distribution. and no-frills services are all examples of marketing mix changes for a health care provider. mobile units (distribution). . employees. In this case. specialized treatment centers (product). In the idea generation stage of the new-product : process. research and development. ideas can be obtained from customers. national distribution could be understood to mean "regular distribution. . 31 Question Which of the 4 P's is a variable that health care providers could employ to reach their market segments? : Student Answer: Instructor Explanation : Rationale: Image advertising (promotion). : months of starting the program. the firm evaluates the technical feasibility of the proposal and whether the idea meets the objectives defined in the new-product strategy development step. In this stage. : objectives. Student Answer: . In which stage of the new-product process was this product? Student Answer: Instructor Explanation In the screening and evaluation stage of the new-product process. This is an example of: .32 Question Michelin and Goodyear have developed a “run-flat” tire that can travel up to 50 miles at 55 MPH after suffering total air loss. there is an internal : approach. __________ barriers will doom the new product to failure because the product's claims are not consistent with what consumers do and how they think. 34 Question A new exercise video contends that with one day of fasting and one one-hour period of intense cardiovascular exercise. His team evaluated the technical feasibility of the proposed design and whether the idea met the new-product . : Student Answer: Instructor Explanation : Rationale: Michelin and Goodyear have added product features and used high quality product materials to develop this tire. the average individual can lose five pounds a week and be in peak health within six . 33 Question A 3M researcher worked with university students to develop the Post-it® Flag Highlighter. advertised and promoted heavily over the years since branded substitutes exist. Risk barriers include physical. . : Student Answer: Instructor Explanation Demand-oriented approaches weigh factors underlying expected customer tastes and : preferences. so it is a convenience good. : Student Answer: Instructor Explanation : Rationale: Toothpaste is relatively inexpensive. 35 Question Which of the following is the best example of a convenience good? . or social barriers to product acceptance. and competition when selecting a price level. 1 Question Demand-oriented approaches weigh factors underlying expected __________ more heavily than factors such as cost. widely available. profit. and is purchased frequently with little time and effort. economic. Psychological barriers result from cultural differences. .Instructor Explanation Usage barriers occur because the product is not compatible with existing habits. Value : barriers occur because the product provides no incentive to change. 2 Question Target return-on-sales pricing is . : Student Answer: Instructor Explanation Text term definition—demand factors : 4 Question Using __________. . . : Student Answer: Instructor Explanation Text term definition—target return-on-sales pricing : 3 Question Demand factors are factors that determine . higher-margin products while in the store. It is hoped that customers will buy other. many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and induce additional store traffic. : Student Answer: Instructor Explanation Loss leader pricing is deliberately pricing a product below its customary price to attract : consumer attention to it. : Student Answer: . : Student Answer: Instructor Explanation Text term definition—barter : 7 Question Three major types of special adjustments to list or quoted price are . : Student Answer: Instructor Explanation Key term definition—pricing constraints : 6 Question The practice of exchanging goods and services for other goods and services rather than for money is called .5 Question Factors that limit the range of prices a firm may set are called . . : 10 Question Target pricing is the result of a manufacturer __________ in a product to achieve the target price. : Student Answer: . : Student Answer: Instructor Explanation Customary pricing is a competition-oriented approach to pricing. : allowances. 8 Question The ratio of perceived benefits to price is called . and geographical adjustments.Instructor Explanation The three major types of special adjustments to list or quoted price are discounts. : Student Answer: Instructor Explanation Key term definition—value : 9 Question Which of the following is NOT a demand-oriented approach to pricing? . : to help recoup its research and development costs for the phone? Student Answer: Instructor Explanation The conditions favoring skimming pricing are most likely to exist when a new product is : protected by patent or copyright or its uniqueness is understood and appreciated by customers as is the case with the iPhone. $500. The profit is $4. The variable cost is the labor and materials for each kit ($5 + $45) times the number of kits sold (150 kits) or : $50 x 150 = $7. If Forever Quilting sells 150 kits in a given month. $200 for heat and electricity. Which pricing strategy did Apple use .500 for the monthly salary of its owner. and $4500=$6200. its monthly profit will be: Student Answer: Instructor Rationale: Profit = total revenue . The fixed costs are $1. People waited in line overnight so they could be one of the first to own these unique phones. (There is no quantity discount.500) = $4.) The costs of the materials that go into each kit are . $200.Instructor Explanation Text term definition—target pricing : 11 Question Forever Quilting is a small company that makes quilting kits priced at $120 each.000. .000 . 12 Question The Apple iPhone was introduced as a new product at an initial price of $600. $500 for advertising in quilting magazines.300.(fixed cost Explanation + variable cost) = $18. It costs $5 in labor to assemble a kit.000 for rent and insurance. and $4. The company has monthly expenses of $1.500.300 for the month.total cost = (unit price x quantity sold) .($6200 + $7. : $45. and the cost of printing and mailing is $1000.30 Explanation = 100 maintenance jobs : . goodwill effects.) How many additional maintenance service jobs must result for the promotion to break even? (Disregard opportunity costs. and for subsequent : handling of the shoes. : shoes in a range of sizes and styles. and any additional revenues. 14 Question A small gasoline station manager observes that while gasoline sales have been steady. for all the transportation costs. This means that Student Answer: Instructor Rationale: With FOB factory (FOB origin pricing) the title to the goods passes to the Explanation buyer at the point of loading. so Neiman Marcus becomes responsible for picking the specific mode of transportation.13 Question The fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season. The $10 will just cover the costs of the oil change. of Jobs = Extra Fixed Cost / Price . she negotiates a good price for a quantity of . FOB factory. She : decides to offer a promotion--an oil change for $10 with a coupon mailed to 800 households in a 2-mile radius from her station.UVC = 1000 / 40 . whose average price is $40 (Average materials and labor costs per job is $30. .) Student Answer: Instructor Rationale: Incremental No. the service side of her business has fallen off and mechanics are often idle. She hopes the promotion will increase regular maintenance service calls. In Milan. Stark Bros.99 cards (about half the price of the previously least expensive cards sold by Hallmark). : trees). some lawyers and their clients agree on a fixed fee based on expected costs plus a profit for the law firm.. Student Answer: Instructor Explanation Penetration pricing is the setting of a low initial price on a new product (inexpensive : greeting cards) to appeal immediately to the mass market. Hallmark was using a __________ pricing strategy. 16 Question Rather than billing clients by the hour. : Student Answer: Instructor Explanation The rising cost of legal fees has prompted some law firms to adopt a cost-plus pricing : approach. uses Student Answer: . 15 Question When Hallmark cards introduced a line of $0. fruit trees and landscaping catalog in five separate orders. you will pay $108.99. the greeting card company was trying to appeal to a mass market that was price : sensitive. 17 Question If you were to buy five dwarf peach trees from the Stark Bros. Which pricing method are they using? . you pay $89.99. but if you order its assortment (1 each from five different dwarf peach . grass clippings or some other kind of ground covering. When pricing pine bark mulch. : . or 10.000/(15-5) = 1. This is due to benefits received from not having to make separate purchases and enhanced satisfaction from one item given the presence of another.000. It has fixed costs of $10 million and unit variable costs of $5 per pair. : their gardens. If the company charges $15 per . Bundle : pricing is based on the idea that consumers value the package more than the individual items. how many pairs must it sell to break even? Student Answer: Instructor Rationale: The break-even point is calculated as fixed costs divided by price minus Explanation unit variable costs. : 19 Question Ace Shoe Company sells heel replacement kits for men's shoes. a garden supply retailer should use: Student Answer: Instructor Rationale: Customary pricing is a method of pricing based on a product's tradition. This is an example of bundle pricing—the marketing of the five dwarf trees at a single "package" price. or other competitive factors. Explanation standardized channel of distribution. If the price being charged is not within a narrow range that they feel is appropriate.Instructor Explanation Bundle pricing is the marketing of two or more products in a single package price. : pair. 18 Question Southern gardeners have a preconceived idea on what they will pay for pine bark mulch that they buy at their local gardening supply store to keep the weeds down in .000.000. they will make substitutions--newspaper. 000. Production overhead is $1. regardless of which of two pen .000.000. : quoted prices is the photocopying service using? Student Answer: Instructor Explanation Quantity discounts are reductions in unit costs for a larger order. .500.2.000. For the Cordova design.000) + (500.000 units x $11/unit) = $7. Materials cost per pen is $6.000 units of the Cordova design? Student Answer: Instructor Rationale: The demand function of each design is irrelevant. : designs is being implemented.000 +1. and 8 cents a copy for 101 copies or more. Q = 175 .2.000. The question provides an : example of quantity discounts. What kind of adjustment to list or .5P. What are the total costs for sales of 500.1P. Q = 150 . Advertising and promotion is $1. 9 cents a copy for 26 to 100 copies.20 Question The Precision Writing Instruments Company makes two pen designs—the Cordova design and the Savannah design. These data apply. Labor cost per pen is $5.000 : 21 Question Your local instant photocopying service charges 10 cents a copy for copies up to a quantity of 25. Marketing research has estimated the following demand functions for the next year of sales for the two pen designs where Q represents demand in thousands and P represents price. The answer is Total Explanation costs = Fixed costs + Variable costs= (1.000. For the Savannah design. . and ship 5-pound packages of Alaskan salmon. freeze. 23 Question A radio advertisement features a female buyer who is very enthusiastic about the pricing policies of the Saturn automobile dealers. Student Answer: Instructor Rationale: The idea is simple: no matter which Saturn dealer a customer might visit. Inc. the buyer (or any other buyer for that matter) would be quoted the same price for the same automobile. asked for the price of the car she preferred. the car buyer laments about the difficulty she experienced with other car dealers in haggling over a final price for an auto. a Explanation given model of Saturn car is priced the same. process. What type of pricing does Lady Marion Seafood use? Student Answer: . and the sales person quoted her the selling price. $30 to catch. In comparison. No matter which Saturn dealer she visited. : 24 Question Assume it costs Lady Marion Seafood. package. It uses a 60 percent markup on its salmon . the buyer touts the ease with which she arrived at a final price for her new Saturn automobile--she simply entered the show room. In the testimonial-type : advertisement. 22 Question Which of the following statements about geographical adjustments to price is correct? : Student Answer : . The advertisement represents Saturn's __________ policy. : products and charges customers $48 for a postage-paid vacuum-sealed package. 26 Question Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds. or units sold.Instructor Rationale: Standard markup pricing adds a fixed percentage to the cost of all items in Explanation a specific product class (5-pound packages of salmon). $120.500 for the monthly salary of its owner. . $500 for advertising in trade journals. $200 for heat and electricity. it will result in a significant increase in . or simply the price of this unit--in this case.000 for rent and insurance. Ampro-Mag's average revenue per unit is: Student Answer: Instructor Rationale: Average revenue is the average amount of money received for selling one Explanation unit of the product. The demand for latex gloves is Student Answer: Instructor Explanation Elastic demand exists when a slight decrease in price results in a relatively large increase : in demand. : quantity demanded. It costs $5 in labor to assemble a kit. It sells these items as a neutralizing kit that priced at $120 each. : 25 Question Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points. The company has monthly expenses of $1. . and $3. : (There is no quantity discount.) The costs of the materials that go into each kit are $45. 000 for your 1988 Camaro. The company gets $10 per dishwasher for the 15 dishwashers traded in. : Student Answer: Instructor Rationale: This is a description of a situation involving a trade-in allowance. What is the actual price the company will pay for each dishwasher? Student Answer: Instructor Rationale: Using the price equation. 28 Question A new car dealer can offer a substantial reduction in the list price of a new Ford pickup truck by offering you a __________ of $3. "We want to control 60 percent of the bleach market within . Financing charges total $20 per unit.($150 quantity discount + $10 trade in) + $20 financing= 550 (150 + 10) + 20= $410 : .: . Explanation : 29Question If the CEO of the Clorox Company were to say. 27 Question A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex : it owns.Discounts and allowances + Explanation Extra Fees= $550 . Price = List price . it is eligible for a $150 per unit quantity discount. Because the company is buying more than 10 dishwashers. in exchange. price is the money. Just as a customer pays a specific monetary price for physical product like a loaf of bread or a : box of cereal. The . but the parties exchange services or goods. The attorney charged O'Rourke a fee for his services. : including his own sales. the $12 charged by the hair stylist. 30 Question Patty O'Rourke hired an attorney to represent her in a court case involving an auto accident. The attorney fees paid by O'Rourke. goods. 31 Question An ad campaign by Suave shampoo asked television viewers to identify the hair that was shampooed and conditioned with Suave products and the hair on which expensive salon hair-care products were used. and exchange of lawn mowing for garden tilling are examples of: Student Answer: Instructor Rationale: In the marketing realm. : Student Answer: the next five years. the neighbor roto-tilled Mathison's garden.. Terry Thomas needed : a haircut--the local stylist charged him $12 for her services. : idea of the ad was that a person could not tell by looking that a woman was using the much cheaper Suave brand. By making price its selling point. which is one definition of market share. Aaron Mathison mowed his neighbor's lawn. The price of getting one's garden roto-tilled might take the form of barter--where in exchange for one service or product no money changes hands. Instructor Explanation The CEO has set a numerical target for the percentage of the total bleach market. . or services exchanged Explanation between two or more parties for the ownership or use of a good or service." he would have set a __________ pricing objective. the price of a haircut service might be $12. Suave is most likely using Student Answer: . Consumers can buy a smaller version of this same bouquet at the Hallmark website for $74. Hallmark presented each Olympic : winner with a special bouquet of roses designed to resemble the Olympic torch. It was the first time that it has participated in the Olympics. then it is using which demand-oriented approach to pricing Student Answer: Instructor Rationale: Skimming pricing is appropriate when there are enough prospective Explanation customers who are willing to buy the product immediately at the high price. : Student Answer: Instructor Explanation A firm must know or anticipate what specific price its present and potential competitors : are charging now or will charge. a below-market pricing strategy. If Hallmark is treating the Olympic bouquet as an innovative product. 32 Question A manufacturing company that introduces a product must know or anticipate what specific price its __________ currently charge or will charge in the future. The Olympic bouquet that consumers can buy contains two dozen yellow roses. and customers interpret the high price as . . the high initial price will not attract competitors. 33 Question Hallmark was the official supplier of flowers at the last Winter Olympics.95. yet you can buy two dozen yellow roses for less than $35 at most supermarkets. .Instructor Explanation The promotional campaign for Suave implies that its prices are significantly below those : of equal products on the market. 35 Question The prices for all furniture sold at American Furniture Warehouse end in $9. only 1 million copies will be sold. : Student Answer: Instructor Rationale: Odd-even pricing involves setting prices a few dollars or cents under an Explanation even number. Calculate the marginal revenue for SHËPE magazine at the higher price. If the price per issue is : increased to $3. .25 million copies of its magazine targeted to young women seeking a healthier lifestyle.25 more. 34 Question At a price of $3 each. Student Answer: Instructor Rationale: Marginal revenue is the addition to revenue by selling one more unit.50 per magazine. Fixed costs are $1 million and unit variable costs are $0. : 1Question Indirect channels for consumer goods . American Furniture Warehouse uses: .25 each. which is also the average revenue per unit and price per unit for this : problem. Explanation Because each additional unit sold brings in $3.25 per unit. the marginal revenue is $3.: signifying high quality (playing off the prestige associated with the Olympics). SHËPE magazine sells 1. 3 Question Which of the following is an example of nonstore retailing? . and risk taking. : Student Answer: Instructor Explanation Nonstore retailing occurs outside a retail outlet. They are: (1) transactional--buying. (2) logistical—assorting. and marketing information and research. : Student Answer: Instructor Explanation Intermediaries make possible the flow of products from producers to buyers by performing : three basic functions. transporting. direct : mail. television home shopping. catalogs. selling. and direct . sorting. telemarketing. : Student Answer: Instructor Explanation Text term definition—indirect channels : 2 Question The three basic functions performed by intermediaries are . grading. and (3) facilitating--making goods and services more attractive to buyers through financing.. storing. online retailing. such as through automatic vending. selling. . : Student Answer: . : Student Answer: Instructor Explanation Key term definition—disintermediation : 6 Question A(n) _____ is any intermediary with legal authority to act on behalf of the manufacturer. this practice is best termed . it is called . : Student Answer: Instructor Explanation Text term definition—backward integration : 5 Question When a channel member bypasses another member and sells or buys product direct. 4 Question When a retailer owns a manufacturing operation. 7 Question The __________ describes how new retail outlets enter the market. : Student Answer: Instructor Explanation Key term definition—wheel of retailing : 8 Question The purpose of a vertical marketing system is to . . : . 9 Question Which of the following statements about corporate chains is true? . : Student Answer: Instructor Explanation Vertical marketing systems are professionally managed and centrally coordinated : marketing channels designed to achieve channel economies and maximum marketing impact.Instructor Explanation Figure 13-1 states that an agent or broker is any intermediary with legal authority to act on : behalf of the manufacturer. especially since it wants to have the product distributed nationally. and are able to negotiate with suppliers for good service or volume discounts. Consumers benefit because there are multiple outlets with similar merchandise and consistent management policies. However. 10 Question One inventory management approach assigns a manager with the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other. : sales and profits for that set of products. This is called Student Answer: Instructor Explanation Key term definition—category management : 11 Question A regional bakery makes organic breads and muffins. : take some time before sales take off. and it wants to make sure the marketing program is consistent everywhere.Student Answer: Instructor Explanation Corporate chains are multiple outlets under common ownership. it will . It feels the choice of distribution channel is critical to the product's success. It should use Student Answer: Instructor ExplanationSelling agents represent a single producer and are responsible for the entire marketing . use centralized decision: making. with the objective of maximizing . : changed its distribution strategy. IBM employed __________ distribution and made its products available only through a single retail outlet in specific locations. 12 Question Which of the following statements describes the key difference between merchant wholesalers and agents and brokers? . authorized IBM retailers. Currently. Currently. Selective distribution means that a marketer chooses a select few retail establishments in specific geographic locations to distribute shopping goods. As such. Initially. Such a : distribution strategy may be used to create or maintain an image of market leadership or cuttingedge product development.: function of that producer. . and truck jobbers often handle bakery items. IBM is using __________ distribution. located throughout the country. as computers have become more of a shopping good. Consumers can now purchase IBM computers at several wellknown department and discount stores. Selling agents are often used in the food industry. 13 Question IBM has long been perceived as the leader in computer technology. for many years IBM computers were available only from selected. as it seeks to broaden the degree of its distribution and make its computers available in several retail outlets in specific areas Student Answer: Instructor Rationale: Marketers seek to achieve the best coverage of their target markets by selecting the Explanation type and density of intermediaries used at the retail level. including Wal-Mart and K-Mart. Exclusive distribution involves the use of one specific retailer in a certain geographic region as the sole outlet for a product. : Student Answer: Instructor Explanation Unlike merchant wholesalers. IBM has . agents and brokers do not take title to merchandise and : typically provide fewer channel functions. Marketing channels make possible the flow of goods from a producer. : including the clothing store. and machinery dealers to provide the merchandise that is sold through this Student . The website lists goods from over 700 machinery manufacturers. communication.com relies on a well-established channel of manufacturers. to a buyer.500 distributors of new equipment. Firms the world over have discovered that customer service is closely related to . and 650 dealers of used inventory for sale on . : the website.14 Question Many organizations have realized that customer service is a key element of supply chain management. This pipeline is actually a Student Answer: Instructor Rationale: Marketing channels can be compared with a pipeline through which water flows from Explanation a source to terminus. : 16 Question MachineTools. boring mills. The logistics manager who seeks to provide clients with complete customer service must satisfy those clients in terms of: Student Answer: Instructor Rationale: Customer service in a supply chain setting includes dependability. He is the ultimate consumer in a pipeline from the producer through intermediaries . and engine lathes. distributors. 2.com sells grinders. through intermediaries. Explanation time and convenience : 15 Question Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store. MachineTools. : customer satisfaction and the sale of goods and services. : Student Answer: Instructor Rationale: Scrambled merchandising is offering several unrelated product lines in a single store. 17 Question A drug store that sells pharmaceuticals.truck. : . : .” If a trucker needs to find a load for a particular trade lane. camera equipment.Answer: Instructor Explanation Electronic marketing channels employ the Internet to make goods and services available : for consumption or use by consumers or industrial buyers. he or she can visit one of these sites.net are both Internet companies that are called “go-betweens. these two websites can be categorized as Student Answer: Instructor Rationale: Brokers are independent firms or individuals whose principal function is to bring Explanation buyers and sellers together to make sales. and find a company that needs a shipment moved. Since the purpose of these websites it to put buyer and sellers together so that a sale can be made.com and loads. 18 Question Freightfinder. and automobile motor oil is an example of a retailer using . Explanation the situation here. list : their price and available truck space. beauty aids. nonperishable grocery items. What method of distribution is used by pharmaceutical companies? Student Answer: Instructor Rationale: Dual distribution is an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same product. : wholesalers that sell to the remaining independent drugstores in the U. They design promotional plans. set prices. .19 Question Dominion is a Canadian supermarket. and make recommendations to Carla on product strategy. determine distribution policies. : Student Answer: . Explanation : 21 Question Carla's Cards uses __________ to sell and market the entire line of greeting cards. which mails members a $20 gift certificate when they purchase a certain dollar amount of infant products. They also sell to drug . Recently. They market their products to large retail chains that distribute the medicines to their stores across the nation. : Dominion is offering a Student Answer : 20 Question Pharmaceutical companies sell to hospitals and clinics directly.S. it began its Baby Club program. . Instructor Explanation Selling agents represent a single producer and are responsible for the entire marketing : function of that producer. Which type of market coverage does the company use? . toys. Rack jobbers sell familiar products. : Student Answer: Instructor Explanation Rack jobbers are wholesalers who furnish the racks or shelves that display merchandise in : retail stores. toys. such as hosiery. and health and beauty items. and health and beauty items are sold by __________. These types equipment are considered to be specialty products. housewares. : Student Answer: Instructor Rationale: Exclusive distribution is typically chosen for specialty products or services. . perform all channel functions. Explanation : . 22 Question Hosiery. and sell on consignment to retailers. 23 Question John Deere manufactures and distributes industrial and farm equipment. : Jabil.24 Question Johnson Controls can receive an order for automobile seats from Ford and deliver the order 4 hours later. Flextronics. price. and order its networking equipment. through their catalogs. and at their online website are examples of __________ retailers. . As used by Johnson . and Solectron. : 25 Question Retailers like Williams-Sonoma and The Discovery Store that sell at retail stores. beginning with raw materials and ending with delivery of the finished seats to Ford. for Ford. The individuals who monitor these transactions and make sure each is performed in a cost-effective and timely fashion are engaged in Student Answer: . Products are built and tested to Cisco standards. untouched by human hands on Cisco's payroll. : Student Answer: Instructor Explanation Multichannel retailers utilize and integrate a combination of traditional store formats and : nonstore formats. 26 Question Customers currently link to Cisco's website to configure. like the two chains in the example. . sometimes with procedures run remotely by Cisco. Cisco then sends orders back out across the Internet to producers and assemblers including Celestica. Most are then drop-shipped to buyers. : Controls. logistics Student Answer: Instructor Explanation Logistics involves those activities that focus on getting the right amount of the right product to the right place at the right time (time and place utility) at the lowest possible cost—in this case. retailers of lighting fixtures. the situation here with Lighting-One : 28 Question Wal-Mart can obtain cooperation from manufacturers in terms of product specifications. Which type of vertical marketing . given its position as the world's largest retailer. price levels. and promotional support. : activities. to concentrate their buying power and to plan collaborative promotional and pricing . : system does Wal-Mart represent? Student Answer: Instructor Explanation Wal-Mart can achieve coordination of production and distribution because of its size and : influence rather than through ownership. 27 Question Lighting-One is a national ___________ that allows its independent members.Instructor Explanation Supply chain management is the integration and organization of information and logistics : activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers. Student Answer: Instructor Rationale: A contractual system involves independently owned stores that band together to act Explanation like a chain. . Fox Entertainment Group is an example of a(n) Student Answer: . . This is an example of which types of nonstore retailing? Student Answer: Instructor Explanation Omaha Steaks used direct mail to gain new customers throughout North America. and 21 regional sports networks. 30 Question A retail store carries a broad selection of small kitchen appliances. : the shows produced at its TV production unit and many of the movies made at its studio are made just for televising on its cable networks. but not all services such as maintenance in this example : 31 Question The Fox Entertainment Group counts among its assets a thriving TV production unit. Since most of . It : enclosed a catalog with the order and followed up by telemarketing to retain the customers now in their database. It has an informed staff and will even gift wrap your purchases free of charge. however. Explanation and gift wrapping. This store offers: Student Answer: Instructor Rationale: A limited service retailer provides some services such as credit. : the company's salespeople followed up by telephoning customers to ask for new orders.29 Question The marketing managers at Omaha Steaks used airlines' databases to mail a special offer to frequent flyers. a Hollywood movie studio. It does not. have a shop for repairs should . : your appliances need maintenance. 33 TV stations. Eight weeks after shipping the steaks to the frequent flyers who placed orders as a result of the initial offer. merchandise return. a half-dozen national cable networks. 33 Question The key goal for retailers in the accelerated development phase of the retail life cycle is to . 34 Question Accelerated development in the retail life cycle is similar to which stage in the product life cycle? : . An alliance between Kraft Foods and Starbucks is a case in point. : Student Answer: Instructor Explanation A strategic channel alliance occurs when one firm's marketing channel is used to sell : another firm's products.S. 32 Question Kraft distributes Starbucks coffee in U.Instructor Explanation A corporate vertical marketing system combines successive stages of production and : distribution under a single ownership. . . supermarkets and internationally using a __________. : Student Answer: Instructor Explanation The key goal for a retailer in the accelerated development phase of the retail life cycle is to : establish a dominant position in the fight for market share because of the intense competition. and many others These pricing decisions are knows as Student Answer: Instructor Explanation Markdowns occur when the item does not sell at the original price. 35 Question The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley. . and a price adjustment : is necessary—the situation described here. Arkansas.Student Answer: Instructor Explanation Accelerated development and the growth stage are both the second stage of their : respective life cycles where both market share and profit achieve their greatest growth rate. .999. a prospective bride shopping at Low's can find gowns : once priced at $6. $800 gowns for $400. From December 26 to January 16.000 for $2.