MKT 300 Exam 2

Below is a list of the five new-product adopter categories. In what order do these groups of consumers adopt new products? Category 1: Laggards Category 2: Late majority Category 3: Consumer innovators Category 4: Early majority Category 5: Early adopters a. 4, 2, 1, 5, 3 b. 5, 4, 3, 2, 1 c. 3, 4, 1, 2, 5 d. 3, 5, 4, 2, 1

3,5,4,2,1

The new-product development process is often costly, risky, and requires a significant amount of time on the part of the company developing the product. Your company is developing a new product. Hoping to be successful, your product development manager follows the six-step development process. The rate of new product failure averages 80 percent; however, he or she knows that a company can reduce the chances of a new product's failure by implementing and carefully proceeding through this process. Below is a description of what occurs during each of the six steps in the development process. In what order should these activities take place? Step 1: Your company runs through a checklist of standards to be met for its products. Step 2: The product is assessed to find out its likely growth and competitiveness. Step 3: The product is ready for full-scale marketing. Step 4: Your company has an idea for a new product. Step 5: Your company converts the new product idea into a visible prototype. Step 6: This step will help determine a consumer's reaction to the new product in a real-world environment. a. 4, 1, 2, 5, 6, 3 b. 4, 2, 5, 1, 3, 6 c. 2, 4, 3, 5, 6, 1 d. 5, 4, 6, 2, 3, 1

4,1,2,5,6,3

You work for a firm that franchises high-end spas. The company wishes to identify promising new locations. Your marketing research consultant believes you can forgo the costly collection of primary data, because secondary data will provide the key information you need. You were skeptical, but his or her presentation changed your mind. His or her presentation included all of the following points except: a. U.S. census data enables you to determine city-block-level population characteristics relevant to spa use. b. Because of your up-to-date mailing list, you can readily implement cost-effective mail surveys. c. Spa industry trade magazines publish details about important market trends. d. There are research services able to identify neighborhoods with high concentrations of people likely to spend time at spas.

Because of your up-to-date mailing list, you can readily implement cost-effective mail surveys.

Based on sales reports and customer feedback, you have mapped five brands of toothpaste marketed by your company so that you can get a visual of how each rates with the public. Based on the positioning descriptions below, which brand is considered by consumers as the best overall value? Brand A: Low Price; Low Quality. Brand B: High Price; High Quality. Brand C: Moderate Price; Moderate Quality. Brand D: Moderate Price; High Quality. Brand E: High Price; Low Quality. a. Brand A. b. Brand B. c. Brand C. d. Brand D. e. Brand E.

Brand D

Airbnb, the online home rental business, has partnered with the Hearst publishing company to create Airbnb Magazine. This is primarily an example of: a. retail branding. b. line extension. c. online branding. d. brand extension. e. national branding.

Brand extension

After spending time in the marketing department of a cookware company based in Ohio, you've been told to prepare for a move to a new international division. Your boss hasn't specified its location—only that it will be outside the most mature markets for many U.S. consumer products. Based on that information, you can assume the move will not take you to: a. India. b. China. c. Canada. d. Brazil.

Canada

Estee Foods has succeeded in the highly competitive candy market by focusing on sugar-free sweets that meet the needs of people on strict sugar-free diets, like diabetics. Estee practices which of the following strategies for reaching its target market? a. Behavioral marketing. b. Concentrated marketing. c. Differentiated marketing. d. Undifferentiated marketing. e. Lifestyle marketing.

Concentrated marketing

Making soap has been your hobby for some time, but now you are contemplating turning your hobby into a small business. You use only hypoallergenic ingredients in your small batch soaps. Now sales come by word of mouth, but you plan to promote your handmade goods and sell them on one or more online outlets to people who are sensitive to the cleaning agents used in mass market soaps. Which marketing strategy will fit your newly established business? Select the best answer. a. Differentiated marketing, because you need to differentiate between consumers who are sensitive to mass market cleaning agents and those who are not. b. Undifferentiated marketing, because soaps serve the same purpose for all consumers. c. Health marketing, because your soaps will help prevent allergic reactions. d. Concentrated marketing, because you will concentrate on meeting the needs of a single market segment.

Concentrated marketing, because you will concentrate on meeting the needs of a single market segment.

You work for a beverage distribution company and have been asked to support the marketing research team in the preliminary phases of their process. You have been tasked with finding out which beverages are most popular at sporting events, so you visit local stadiums, talking with fans about their preferences and to concession owners about their beverage sales. You also gather samples of sports-oriented ads being run by your competitors. Your teammates ask you why you chose to employ this strategy. Which of the following themes explain your choice? a. Conducting exploratory research may include talking to customers and retailers, and/or evaluation of available competitive data. b. Formulating a hypothesis requires clarification of what researchers need to test. c. Defining a problem may include clarification of what researchers need to test. d. Creating a research design may include talking to customers and retailers, and/or evaluation of available competitive data.

Conducting exploratory research may include talking to customers and retailers, and/or evaluation of available competitive data.

Your large retail store sells power tools and construction supplies, and your customer base is made up primarily of home improvement contractors, subcontractors, and serious DIYers. But business has stagnated now that the housing market has seen a downturn. What can you do to boost your sales and keep your business solvent? a. Concentrate on selling high-profit items that are already in your inventory. b. Concentrate on selling either a consumer product or a business product, not both. c. Consider marketing to a segment that meets the criteria for effective segmentation. d. Offer reduced prices to your customer base to build loyalty in that market segment. e. Increase your advertising to home improvement contractors.

Consider marketing to a segment that meets the criteria for effective segmentation.

You have been working for a popular hotel chain for the last several years and want to use some of the data you have pulled from the data warehouse to answer a series of questions you hope will help you better strategize for the company's upcoming marketing campaign. You are particularly interested in evaluating customers' past behavioral patterns when it comes to rewards programs and promotions. You need an efficient way to sort through decades of information on customer profiles. Which of the following strategies would you use to acquire the information you need? a. Ethnographic research b. Exploratory research c. Predictive analytics d. Data mining

Data mining

As consumers opt to watch their favorite television shows and movies online via Web-streaming platforms such as Netflix and Hulu, the appeal of cable television seems to have dwindled. Some cable companies have gone out of business, and others have merged to ensure stability during these challenging economic times. According to the scenario presented above, at which of the following stages is cable television? a. Maturity b. Decline c. Challenged d. Growth

Decline

Your professional rival, Maureen, works for one of your company's competitors. You both work for companies that specialize in condiments and salad dressings. Maureen's company's major product is a seasonal salad dressing, which happens to be in the decline stage of its product lifecycle. She asks your advice about how to extend the product's lifecycle. You do not want Maureen's company to outcompete your company in the market. Which of the following steps would you tell her to take? a. List new recipes that families can try on your company website b. Develop a campaign to encourage families to use the product year round. c. Repackage the product to create new interest d. Eliminate the product and introduce a completely new one

Eliminate the product and introduce a completely new one

You work for a new company in an emerging market, the 3D printer industry. With about 200 employees, your company is undoubtedly growing, and order requests have doubled within the last year. Because of the size of your company, you are not quite ready to compete with industry giants. You do, however, understand that there is a huge potential for success because a 3D printer can potentially be used for a wide range of activities, including printing products within the home, printing organs for transplant that can be used in operating rooms across the world, and printing and filling small orders for local businesses. Which of the following types of business-to-business market segmentation would you use in the scenario described above? a. Buyer decision segmentation. b. End-use application segmentation. c. Customer-type segmentation. d. Demographic segmentation.

End-Use application segmentation

Choose any of the following types of B2B segmentation that is(are) incorrectly described. a. Customer-type segmentation is more specific than commercial segmentation. b. Demographic segmentation can include the number of people employed by the company. c. End-use application segmentation deals with the way in which the product or service is engineered and manufactured. d. In buyer decision segmentation, a company may deal with one or multiple individuals involved in the purchase decision.

End-use application segmentation deals with the way in which the product or service is engineered and manufactured In buyer decision segmentation, a company may deal with one or multiple individuals involved in the purchase decision

The organizational buying process is multifaceted and is demonstrated through a seven-stage process. Which of the following descriptions pertains to an activity that the purchaser would be likeliest to undertake during the last stage? a. Ascertain which company best meets the purchaser's needs. b. Examine the frequency of on-time delivery. c. Decide the design and necessary amount of the product to be made. d. Identify an improvement to be made in how the purchaser operates. e. Accept competitive bidding in writing.

Examine the frequency of on-time delivery.

As a marketing strategist just hired by your company, you want to be respectful of your new colleagues. However, during a meeting to plan research into the firm's global opportunities, a coworker clearly errs in one of his or her comments. You feel obligated to point out his or her mistake. Which of the following statements do you point out? a. Mail surveys are common in developed parts of the world. b. Mail surveys are ineffective in many countries because of unreliable postal service. c. In some countries, there are cultural problems with focus groups. d. Face-to-face interviewing is the least common method for conducting primary research outside the United States.

Face-to-face interviewing is the least common method for conducting primary research outside the United States.

You are about to engage in the marketing research process. It includes the following steps, listed in alphabetical order—not necessarily the order in which they should be carried out. Collecting primary or secondary data Conducting exploratory research Creating a research design Defining the problem Formulating a hypothesis Interpreting and presenting research information Indicate which two of these steps should come first and last. a. First: Collecting primary or secondary data. Last: Defining the problem b. First: Interpreting and presenting research information. Last: Collecting primary or secondary data c. First: Formulating a hypothesis. Last: Creating a research design d. First: Defining the problem. Last: Interpreting and presenting research information e. First: Collecting primary or secondary data. Last: Interpreting and presenting research information

First: Defining the problem. Last: Interpreting and presenting research information

Two demographic variables used when segmenting consumer markets are segmenting by age and segmenting by stage in the life cycle. Which of the following situations does not illustrate segmenting by age? a. A miniature version of a well-known bicycle is marketed with three wheels. b. Breakfast cereal is marketed as being high in antioxidants, which have antiaging properties. c. Flat-pack furniture is marketed as inexpensive and easily portable. d. A car is marketed with the tag "For their first car, pick a brand first in safety ratings."

Flat-pack furniture is marketed as inexpensive and easily portable

Marketing research activities yield different types of data for the marketer. The techniques used to obtain the data and the source of the data are the most significant factors that dictate what type of data are obtained in the marketing research process. From the following list, choose any example(s) of primary data. a. Focus groups, interviews b. Census data, syndicated data c. Surveys, polls d. Experiments e. Annual reports, case studies

Focus groups, interviews Surveys, polls Experiments

You work for a popular restaurant chain. Now your firm wants to transition into selling prepared foods to supermarkets. How is the company's form of promotion most likely to change? a. From social media to TV ads. b. From an emphasis on advertising to an emphasis on publicity. c. From an emphasis on personal selling to an emphasis on advertising. d. From TV ads to radio ads. e. From an emphasis on advertising to an emphasis on personal selling.

From an emphasis on advertising to an emphasis on personal selling

Apple products have had an exciting lifecycle, which indicates just how large and in demand the company's product lines are. While it took the iPod five years to break the 30 million units per year mark, the iPhone reached this mark in four. The iPad reached this mark in two years. Modifications of its popular products continue to sell briskly to new buyers as well as to early Apple customers, despite ever-increasing competitive pressure. Based on the details provided in the scenario above, in which of the following stages of a product lifecycle are Apple products? a. Decline b. Maturity c. Growth d. Developing e. Introductory

Growth

As a marketer, you have many different tools at your disposal to gather the information necessary to develop targeted marketing programs. One of those tools is psychographic segmentation. Select the type of information below that cannot be gathered using psychographic variables. a. I want to know how many children under the age of 18 live in the households of my target market. b. I want to gather data to indicate my target market's attitudes toward home schooling. c. I want to know how much a consumer in my target market enjoys playing and watching sports. d. I want to know how often my target market listens to the radio.

I want to know how many children under the age of 18 live in the households of my target market.

You work for a Europe-based company that is interested in doing business internationally. As a top manager of the firm, you want to make sure that your services and goods meet international standards. When evaluating your company's ability to compete in an international market, which of the following would help you standardize the quality of your company's goods and services? a. Enhanced service encounters b. ISO 9001 c. Benchmarking d. Six Sigma e. Product mix depth

ISO 9001

Your company manufactures a watch that doubles as a heart and caloric intake monitor. Company managers are excited about this innovation and have been pushing it along the product development stages quickly. You have identified the consumers that are most likely to try the new product and hopefully, ensure the product's success. You know that these early adopters will be opinion leaders for this product, and if they like the product, will tell others about the innovation. Because you understand that the rate of adoption for the product will be determined by a myriad of factors, you conduct a webinar for your marketing team on this topic. Your webinar makes all of the following points except: a. If potential buyers get a free two-day trial of the monitor watch, their adoption rate will increase. b. The relative difficulty of understanding how to use the monitor watch will influence the speed of its adoption. c. If potential buyers believe the monitor watch will deliver an experience at odds with their prior experiences, their adoption rate will increase. d. If the monitor watch appears far superior to other watches and monitors, it will have a relative advantage and a faster adoption rate.

If potential buyers believe the monitor watch will deliver an experience at odds with their prior experiences, their adoption rate will increase.

Companies that decide to pursue global marketing efforts have a choice of several ways to initiate building international business organizations. These alternatives give ample choices for the firm to match financial resources, envisioned outcomes, and comfortable risks. Which of the following descriptions of global marketing alternatives is(are)accurate? a. In an acquisition, a company sets up an independent facility outside its home country. b. In a joint venture, the company shares risks, costs, and management with partners. c. An exporter markets domestically produced merchandise to customers in other countries. d. To create an overseas division, a company buys an existing firm in a foreign country.

In a joint venture, the company shares risks, costs, and management with partners An exporter markets domestically produced merchandise to customers in other countries

You are browsing through job listings for global marketing-related jobs on Monster.com. One job catches your attention because it lists the following major responsibilities that closely match your experience: The candidate will be involved in purchase decisions of robotic manufacturing firms in Asia. The candidate will be involved in setting up an independent division with responsibility for robotic equipment production and marketing. The candidate's major focus will be on evaluating the performance of robotic manufacturing activities and incorporating strategies for effectiveness and efficiency. The candidate should have an international customer value orientation. Which of the following terms best describes the focus of this job? a. International direct investment. b. Franchising. c. Exporting. d. Foreign licensing. e. International contract management.

International direct investment

You're the marketing director for a startup firm in the snack food industry. In the past, you've sold only to small specialty stores, but now you hope to crack a major supermarket chain. As you plan your approach to this prospective new buyer, which of the following likely influences on its decision should you consider? a. Economic constraints and organizational changes. b. Demand influences and social factors. c. Category influences and organizational changes. d. Interpersonal influences and organizational factors.

Interpersonal influences and organizational factors

You are learning about strategies that can help a friend's company extend her product's lifecycle. Your friend, Celeste, sells desserts locally and is known for her holiday cakes. Which of the following strategies is likely to be unsuccessful in extending the lifecycle of her cakes? a. Sell cakes year round, rather than just on holidays b. Distribute the cakes in another state c. Change the package size and label d. Package the cakes in boxes that consumers can reuse e. Introduce a line of pies

Introduce a line of pies

You turned on your tablet to read an online article about a Texas-based furniture retailer that reported its first gain in same-store sales in almost two years. The gains were realized in foldable tables and convertible sofas, areas specifically targeted for improvement and often preferred by apartment dwellers with limited space. The company attributes its success to having moved its stores from rural and suburban communities into Dallas-Ft. Worth, 1 of the 10 largest metropolitan areas in the United States. What significant geographic variable or combination of variables is likeliest to be responsible for this retailer's success? a. Climate. b. Market region. c. Market region and urbanization. d. Market density. e. Urbanization.

Market density

Market segmentation is used by marketers to develop the strategy they will use to present their product or service to the consumer. Select the statement below that best describes how market segmentation works. a. Market segmentation groups consumers according to similarities and differences in reference to factors that influence purchase decisions. b. Market segmentation is used to differentiate between local and global consumers. c. Market segmentation is used to differentiate between profit-oriented and nonprofit organizations. d. Market segmentation allows the federal government to monitor business practices nationwide to make sure they comport with federal regulations.

Market segmentation groups consumers according to similarities and differences in reference to factors that influence purchase decisions.

As the marketer for a new electronics firm that produces a limited number of products, you recognize that consumers are not all cut from the same cloth—many variables exist in needs and preferences. But your company cannot change its products to suit each individual consumer preference. Select the statement below that does not accurately tell how market segmentation can help your company sell its goods. a. Market segmentation will show your company the common factors that influence purchasing decisions in your target market. b. Market segmentation will help your company develop a marketing strategy that adjusts your message for your market. c. Market segmentation will help your company identify product changes that will meet all consumer preferences and needs. d. Market segmentation will help your company identify a target consumer market with similar preferences and needs.

Market segmentation will help your company identify product changes that will meet all consumer preferences and needs.

You have entered a stage in the organizational buying process. The scenarios below indicate which stage you have entered: At this stage in the buying process, you will consider how well a particular supplier has responded to your company's needs. Because your company is so large, it uses standardized methods to judge whether a vendor has met or exceeded the company's expectations. Which of the following is an added benefit of the stage in the organizational buying process identified above? a. Translation of product characteristics into detailed specifications. b. Assessment of relationship factors, including communication and trust. c. Measurement of whether or not a vendor has reduced your employees' workloads. d. Identification of quality products, manufacturers, and suppliers that can ensure cost efficiency.

Measurement of whether or not a vendor has reduced your employees' workloads

The United States places first in a number of categories of global marketing and trade opportunities. For example, the United States is the world's largest exporter of services and retailing. More than $600 billion is spent annually in U.S. service exports. Twenty percent of that $600 billion—more than $120 billion—comes from travel and tourism. Which of the following customer descriptions identifies a buyer of this U.S. service export? a. Florine, a native of Kentucky, working at her Appalachian tour company. b. Parisian Cecile, driving a convertible up the West Coast from California to Washington. c. Len, a third-generation Californian, visiting the Prague birthplace of his grandparents d. Sahil, tracing the path his ancestors took from Pakistan to Nepal to India.

Parisian Cecile, driving a convertible up the West Coast from California to Washington.

Business markets differ from consumer markets in several ways. Choose the correct example(s) of these differences. a. Sales promotion is usually emphasized more in business than consumer markets. b. The U.S. consumer market is more geographically concentrated than the business market. c. Personal selling is usually emphasized more in business than consumer markets. d. Channels of distribution are typically longer in business markets than in consumer markets.

Personal selling is usually emphasized more in business than consumers markets

Cassie is failing her "Marketing 101" course. She has to get at least a 97 percent on the next exam to ensure a passing grade this semester, but she is still confused about the difference between two key dimensions of brand personality: relevance and esteem. As her study partner, you want to help Cassie pass the exam. Select the description of this concept that you will urge Cassie to review. a. Relevance is based on knowledge about the brand; esteem is based on perceptions of uniqueness. b. Relevance refers to a brand's ability to stand out from competitors; esteem combines quality perception and knowledge about the brand. c. Esteem reflects the brand's pertinence to its target; relevance is a combination of quality perception and other opinions about the brand. d. Relevance reflects the brand's pertinence to its target; esteem is a combination of quality perception and other opinions about the brand.

Relevance reflects the brand's pertinence to its target; esteem is a combination of quality perception and other opinions about the brand.

Organizations want to have a reputation for producing quality products with strong brand identities to give them an advantage in the marketplace. Brand equity, the added value of a brand name, has four dimensions. Choose the example that is not identified with the appropriate brand equity dimension. a. Gabriella buys her children Campbell's soup when they are sick because it comforts them and helps her feel she is helping by providing nutritious food. This illustrates the dimension of knowledge. b. Peyton buys his jeans from Gap because he likes their quality and because almost all his friends buy Gap jeans too. This illustrates the dimension of esteem. c. Marta buys a pair of Dr. Scholl's shoe inserts because she thinks they will help her feet while she is jogging. This illustrates the dimension of relevance. d. Ruben buys a Ferrari because he thinks it will set him apart from other drivers. This illustrates the dimension of esteem.

Ruben buys a Ferrari because he thinks it will set him apart from other drivers. This illustrates the dimension of esteem.

Aiden is in charge of the supplies inventory at his manufacturing company. Which of the following items is not in Aiden's inventory? a. Toner for the printer b. Garbage bags c. Receipt paper d. USB devices e. Smartphones

Smartphones

Though some people may not automatically identify a service as a product, marketers know that products comprise services as well as goods; sometimes a product may be a combination of the two. You work for a database company and want to ensure that your product listings are accurate, so you refresh your memory by checking how other firms identify their products. Which of the following should be identified as pure goods? a. Gold Standard Gym has affordable rates for all. b. Somaya just launched an online shoe company. c. Abe has contracted a recycling company that collects his materials weekly. d. A publishing company sells health-based curricula. e. Quarets Photography will take pictures of Lyssa's wedding.

Somaya just launched an online shoe company. A publishing company sells health-based curricula.

You decide to start a dog-walking service because you notice a number of trends that suggest a high demand for this type of service. You are trying to convince your brother to partner with you in this business, but one of his comments suggests that he doesn't understand the nature of a service. Which of the following comments did your brother make? a. Services are tied to the individuals who provide those services. Therefore, if a customer has a negative experience with the service provider, he or she may not return even if the service itself was impeccable. b. Consumers who have a need that can only be satisfied by an intangible task are often willing to pay someone to perform that task. Marketers call this a service. c. Perishability means that the unused service capacity from one time period cannot be stored for future use. d. Standardized services are easier to provide than unstandardized services.

Standardized services are easier to provide than unstandardized services

Benchmarking involves three steps. Which of these steps requires external analysis? Step 1: Identifying processes that need improvement. Step 2: Comparing processes to those of industry leaders. Step 3: Implementing changes for quality improvement. a. None of the steps requires external analysis. b. Step 1 c. Step 2 d. All of the steps require external analysis.

Step 2

Alanis has to collect primary data for the floral company for which she works. The company, which is currently based in Miami, Florida, is seeking to expand to other cities within the state. Alanis is interested in gauging what motivates people to buy flowers and customers' attitudes toward online flower delivery. Which of the following primary research methods would best capture the information Alanis wants to collect? a. Case studies b. Surveys c. Syndicated data service d. Observation e. Controlled experiments

Surveys

XYZ Company defines its primary customer group based on demographic variables. To guide the development of its advertising, you were asked to write a description of the typical customer in that group. Just before submitting the assignment, you caught an error: one sentence is wrong because it references a variable that isn't demographic. Which sentence is wrong? a. The XYZ consumer doesn't want to look her age. b. The XYZ consumer is a single parent of two adopted children. c. The XYZ consumer has a growing family but earns less than $40 thousand per year. d. The XYZ consumer is between 20 and 30 years of age.

The XYZ consumer doesn't want to look her age.

The executives of Majority Productions, an entertainment and public relations agency with offices in five countries, are trying to figure out why their marketing strategies in four of the five countries appear to have failed. The company is thriving in the United States, where executives built the company's first office about a decade ago. At the time, they collected primary data that were extremely helpful, leading to a 20-percent growth for the company within the first two years. Because the company's marketing strategies worked so efficiently, the executives saw no need to conduct market research before they entered the other markets. You are diagnosing Majority Productions' inability to compete in international markets. Which of the following is likely to be a major factor in the company's failure in other countries? a. The original data gathered by the company were misleading. b. Other countries lack entertainment and public relations industries. c. The executives of Majority Productions needed to bolster their knowledge about consumers in other countries. d. The U.S. government operates differently from governments abroad. e. The executives of Majority Productions do not nurture diversity within their company.

The executives of Majority Productions needed to bolster their knowledge about consumers in other countries.

This morning your boss, a product manager, assigned you to a group of coworkers who are focused on new product development. However, by the time you got home and started to tell your roommates about it, you forgot what the group is called. You do remember that it is the most common organizational arrangement for developing new products. Choose the most likely name of the group. a. The Product Manager's New Product Development Division b. The New Brand Development Department c. The New Product Venture Team d. The New Product Innovation Department

The new product venture team

Darren King owns a small printing company and uses reams of print paper every month. When he goes to the wholesaler to pick up his normal paper supply, he also sees that the supplier is selling remnants of colored construction paper. Darren purchases the colored construction paper for his children to use for school projects and to make art. Select the two statements below that correctly describe Darren's purchases. a. The supply of print paper from the wholesaler is a business product because Darren uses it to provide a service that he sells. b. The supply of print paper from the wholesaler is a business product because Darren is a business owner. c. The colored construction paper from the wholesaler is a consumer product because Darren's family will use it for personal projects. d. The supply of print paper from the wholesaler is a consumer product because Darren is the ultimate consumer of the product. e. The colored construction paper from the wholesaler is a business product because it was purchased from a wholesaler.

The supply of print paper from the wholesaler is a business product because Darren uses it to provide a service that he sells. The colored construction paper from the wholesaler is a consumer product because Darren's family will use it for personal projects.

You have been asked to supervise a new intern, who inquires about the benefits of having combined goods and services businesses. Rather than explicitly tell him or her the answer, you explain to him or her how these types of businesses operate, so he or she can make an inference about the benefits. To illustrate the purpose of combined goods and services businesses, you tell your intern that sometimes, the combination of a primary good with additional services defines the complete product to the customer and better satisfies their needs. To further illustrate your point, you explain that local coffee shops offer coffee and breakfast as primary goods. However, they also provide free Wi-Fi to make customers more comfortable, encouraging longer stays and extra beverage or food purchases. Based on the information provided, what can your intern infer about the benefits of combined goods and services businesses? a. These businesses can make more strategic investments because they have combined goods and services. b. These businesses experience an increase in revenue faster than single good or service businesses. c. These businesses fail to assess markets and prices appropriately, and may decline in market competitiveness. d. These businesses can choose to sell either their goods or their services, depending on demand. e. These businesses aim to better satisfy their customers by offering goods and services that complement each other.

These businesses aim to better satisfy their customers by offering goods and services that complement each other.

The business-to-business (B2B) market can be grouped into four major categories: commercial, reseller, government, and institutional. Organizations can fall into one of the business market categories. Choose the organizations that are part of the reseller market. a. Arkansas Surgical Hospital signs a contract for a service that will launder all surgical scrubs. b. The Rhode Island State Police buys new Kevlar vests for its officers. c. Duke University purchases new desks for each of its alumni. d. Toys "R" Us purchases Barbie dolls from the toy manufacturer Mattel. e. Keebler buys chocolate chips in bulk to use in the production of its cookies.

Toys "r" Us purchase Barbie dolls from the toy manufacturer Mattel

You work for a tech firm that wants to invest in some capital development projects that could potentially position the company as a multinational giant in the competitive market. One of the projects would require your company to purchase a $500 million software package. Company executives believe the investment would pay off; however, before approving such a costly purchase, they want to identify someone in the IT department who has the expertise to work with this highly specialized package. The person would play a key role within the buying center. Which role would the IT expert be likeliest to play? a. Gatekeeper. b. User. c. Manager. d. Decider. e. Evaluator

User

After interviewing candidates for the job of business marketing specialist, Fred decided to eliminate one—despite her strong paper credentials. Explaining his decision to you, Fred quoted a comment that betrayed the candidate's misunderstanding of B2B market segmentation. Which comment did Fred quote? a. Customer-based segmentation could improve our specificity in targeting buyers. b. When I segment customers demographically, I believe in concentrating on how they use my product. c. I've found that the number of employees a firm has is often a useful demographic segmentation characteristic. d. Segmentation by end-use application is especially helpful when prospective buyers differ in the volume of product they need.

When I segment customers demographically, I believe in concentrating on how they use my product

Last year, you left a job in consumer marketing to take one in business marketing. The shift required you to become accustomed to all of the following changes except: a. The number of distribution channel members you're dealing with is smaller than before. b. The buyer-seller relationships you're involved with are more complex than before. c. You have more potential buyers than before. d. The purchase decision process used by each of your customers now includes more decision-makers than before.

You have more potential buyers than before

You head a marketing team preparing to launch a revised global marketing campaign for a high-end jewelry and accessory company. You review the previous strategies your team has implemented: You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best." Then your team experimented with some countries using the same jewelry, but with a theme of "Investing in Your Best Self." For other countries, your team used the same theme of "Investing in Your Best Self" to sell jewelry-encrusted purses. Buoyed by that success, your team plans a dramatic marketing change: An award-winning designer recrafted the profile of the jewelry to be chunky, rather than delicate. Your team came up with the slogan of "Be Visibly Lovely." Choose the international product and promotional strategy that does not illustrate a form of adaptation. a. You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best." b. Then your team experimented with some countries using the same jewelry, but with a theme of "Investing in Your Best Self." c. For other countries, your team used the same theme of "Investing in Your Best Self" to sell jewelry-encrusted purses. d. An award-winning designer recrafted the profile of the jewelry to be chunky, rather than delicate. Your team came up with the slogan of "Be Visibly Lovely." e. All of the strategies illustrate some form of adaptation.

You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best."

You work for a marketing company that specializes in researching market shares and profits related to miscellaneous consumer products. To ensure that the data you have collected are accurate, you categorize the consumer products of interest according to the customers' buying behavior: convenience, shopping, and specialty purchases. Choose the product that would be best described as a shopping purchase. a. A liposuction procedure b. A bag of pet food c. A house d. A pack of breath mints

a house

You are the vice president of sales and marketing for a major home appliance retailer, and you just received the quarterly global sales report for the second quarter. The first figure that you notice in the report is the dramatic decline in sales in the Latin American territory. You suspect that the falloff isn't unique to your company, but instead is consistent with poor performance in Latin America across many appliance stores and manufacturers. The only way to confirm your hypothesis is with a compilation of market-wide industry data that has been published by various economic think tanks but that your firm can't afford to acquire. Choose the type of outside research specialist best suited to help you—if any. a. a research aggregator b. a data miner c. a predictive analytics expert d. a big data server e. No outside research specialist is especially well suited to help you.

a research aggregator

You have been hired as the new head of development for a dessert company and have been asked to come up with strategies to expand one of your many product lines. Since the market share for cheesecake continues to increase, you are interested in enhancing the depth of this product's mix. You are aware of changing consumer demands and tastes and want to create an innovative variation that does not deviate too much from the cheesecake line. You and your staff conduct market research and collect feedback from customers. Survey responses indicate that though customers enjoy cheesecake treats, they are becoming more health conscious. You decide to come up with a sugar-free cheesecake. As an experienced marketer, you understand that though there are several general advantages to adding depth, some general drawbacks exist as well. Which of the following drawbacks is most likely to hinder sales of the new cheesecake? a. Consumers may only associate the company with one type of product. b. Product variations are often overpriced. c. The appeal of cheesecake is decreasing. d. After adding the cheesecake variation, your firm may be selling too many desserts overall.

after adding the cheesecake variation, your firm may be selling too many desserts overall

You work in the stock market. Stock markets allow businesses to raise additional funds for new projects, business expansions, and capital investment plans. Moreover, they enable the public trading and selling of market shares of a company. Major purchases of stock typically require input from various parts of the organization, including senior management and accounting. One of your colleagues, Amos, works in the IT department of one of the U.S.-based tech firms for which you are trading. Amos is in charge of receiving information about new technologies from commercial sources, universities, and Web-based sources, to name a few, and then working with other IT professionals to find solutions. Which of the following statements is true about the buying center described above? a. Amos has a dual role as a gatekeeper and influencer. b. Amos could potentially function as a user and as a gatekeeper. c. Amos functions as a buyer within the business center. d. Stock markets cannot function as buying centers because they do not have formal organizational structures.

amos has a dual role as a gatekeeper and influencer

As an experienced marketer, you understand the importance of thinking critically about any proposal to add breadth or depth to your product mix. Whenever a member of your team makes such a proposal, you ask all of the following questions except: a. Do all of our current products make adequate contributions to our portfolio? b. Are we at risk of ending up with too many products? c. Are we overlooking a viable consumer segment? d. Are we matching the breadth and depth of our competitors' product mixes?

are we matching the breadth and depth of our competitors' product mixes?

While totaling your quarterly receipts for your business, The Breakfast Bar, you note that a sizable amount of your revenue comes from selling packaged coffee beans to regular customers who come in every day for an extra-large cup of coffee togo. Your plan for the next quarter is to promote your selection of fresh roasted beans with a buy one, get one half off incentive to encourage these customers to purchase more and/or try something new. Which segmentation approach are you employing to bolster sales for the next quarter? a. Value. b. Psychographic. c. Demographic. d. Promotional. e. Behavioral.

behavioral

You are preparing a seminar for your colleagues on the topic "How Marketers Protect Brand Equity." Which of the following pairs of terms and examples should you use when you explain the symbol that distinguishes a product? a. trade symbol, McDonalds golden arches b. brand mark, Nike swoosh c. trademark, McDonalds golden arches d. brand design, Nike swoosh

brand mark, Nike swoosh

A job description posted on Monster.com reads as follows: The individual will oversee each of the Skin Care Division's lotion and lip balm lines. In particular, he or she will be expected to maximize the profitability of all brands within those lines. This description suggests the company is looking for a: a. brand manager. b. category manager. c. product manager. d. profit manager. e. line manager.

category manager

Which of the following is not part of the international political-legal environment that affects U.S. firms operating abroad? a. Legal requirements of host nations. b. International law. c. Export subsidies. d. Cultural norms.

cultural norms

At which stage of the new product development process should a firm typically expect the first substantial increase in its financial outlays on the process? a. Test marketing b. Commercialization c. Idea generation d. Development e. Screening

development

You are in charge of ensuring that all labels used on your food company's packages are in compliance with the law. To remind employees of this responsibility, you distribute a checklist of label requirements. Which of the following does not appear on your checklist? a. Disclose major food allergens. b. Utilize a standard format for nutritional information. c. Disclose country of origin. d. Provide the amounts of calcium and vitamins.

disclose country of origin

Over the last few years, you have seen how important social media has become in shaping people's attitudes and their purchasing behavior. You want to make sure your company takes full advantage of this new avenue for building relationships with current and potential customers. You recognize that the power of social media marketing can be magnified if marketers target the right group of users. You want to target the most influential users of social media when you market new or existing products. Which of the following groups of consumers should you target on social media if you want to generate the highest number of word-of-mouth communications about your products? a. Laggards b. Consumer innovators c. Late majority d. Early adopters e. Early majority

early adopters

You work for a fabric company that sources unique materials from around the world. In the past, you have focused solely on the business of supplying fashion designers with fabric they make into dresses. However, you've recently recognized an opportunity to expand the business by supplying stores like Jo-Ann Fabrics that sell sewing and craft goods to consumers who sew at home. If you pursue this opportunity, in which direction would your company be expanding? a. From one reseller market to another. b. From a fabric market into a home goods market. c. From a commercial market into a reseller market. d. From a materials market to a reseller market. e. From a business market to a consumer market.

from a commercial market into a reseller market

You have recently been hired to work in the marketing department of a company that manufactures and distributes baby food. During orientation, you are told that baby food is a convenience product because it is a good that families want to purchase frequently, immediately, and with minimal effort. This summary makes sense to you because you have a younger brother, and you recall that whether baby food was on sale or not, your parents bought it because they needed to feed your brother. You also remember that because convenience products are typically cheap, retailers must sell large volumes in order to make a profit. Based on the information provided in the scenario above, which of the following would you be least likely to emphasize in the marketing mix for your company's baby food products? a. Running ads b. Hiring a personal selling staff c. Using many sales outlets d. Keeping price low

hiring a personal selling staff

In your new marketing position with an international company making custom leather boots, you recognize the global environment offers a different set of challenges for you to navigate on behalf of your employer. You have been assigned to track product sales to Spain. Which of the following information should you thoroughly familiarize yourself with, to respond to Spain's political-legal environment? a. Whether or not Spanish consumers purchase leather boots online. b. Major foreign competitors. c. Import tariffs on leather goods. d. Cultural dress traditions. e. Value placed on outdoor exercise, like hiking.

import tariffs on leather goods

You are a business consultant and have a contract with the Small Business Administration (SBA) to conduct training seminars for people seeking loans from the SBA to start new businesses. The SBA wants to give these prospective business owners as much information as possible so they have a greater chance of success. You are conducting a seminar on the different types of products that target business markets. Choose the type of business product that tends to have a long life and be very expensive, together with the correct example of such a product. a. installation; large conference table b. component; high-grade lumber c. equipment; fork lift d. installation; customized computer system

installation; customized computer system

Your company is experiencing technical problems and financial losses with one of its products. Which stage of its lifecycle has the product most likely reached? a. decline b. competitive c. introductory d. growth e. maturity

introductory

The director of marketing at your firm is very interested in developing new packages. However, he or she doesn't want a scattershot development process; he or she wants the development team to prioritize the first objective of packaging. This means he or she will instruct the team to put its emphasis on: a. promotion. b. cost effectiveness. c. product differentiation. d. physical protection. e. trade dress.

physical protection

You are the CEO of a food manufacturer that sells only holiday candy. About 85 percent of your company's products are sold between October 15 and December 31 of each year. As the company's overhead costs increase, you need new ways to increase sales and profits. Your research confirms that if the company sold cookies or other baked sweets year round, you could better manage overhead costs and other expenses. How should your marketing managers respond to the scenario described above? a. Market penetration b. Product diversification c. Cannibalization d. Market development

product diversification

Mercy Hospital needs to purchase a highly specialized drug that is patented and sold by only one pharmaceutical company. These constraints will primarily affect which step in the organizational buying process? a. Step 1. b. Step 2. c. Step 3. d. Step 6. e. Step 7.

step 3

You work for a digital timepiece company which started its entry into the global market a year ago. Your predecessor assumed that the company could use the same product and preexisting marketing campaign materials in nations that shared the same language. Sales never got off the ground. You were brought on board to make strategic changes and continue the fight for customers. Which strategy are you most likely to change? a. Sales adaptation. b. Promotion adaptation. c. Straight extension. d. Product adaptation.

straight extension

Your company is studying new product opportunities in the business market. However, the firm has lost out in the past because of heavy price competition in the consumer market, so the CEO prefers to steer clear of the type of business product likeliest to face the same challenge. Which type of business product would you advise the CEO to avoid? a. consulting services b. equipment c. supplies d. component parts e. installations

supplies

Which of the following positioning strategies is inaccurately described? a. A hospital advertises the fact that, unlike other health care facilities, it offers a natural birthing center. The hospital is positioning based on competitive factors. b. To succeed with value positioning, a company must offer the lowest price. c. A car maker who offers the best warranty in the business is positioning based on product attributes. d. A company can succeed with value positioning despite failing to offer the lowest price.

to succeed with value positioning, a company must offer the lowest price