Marketing test 3

A firm may decide that all packages should be similar and include one major element of the same design. This approach to promote an overall company image is called

Family packaging

Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach?

For some services, customers look for the low-cost provider, which is what Safe claims to be.

Select the true statement about nonprofit marketing.

Major nonprofit marketers in the United States are social causes and charitable organizations.

Which of the following countries was the world's first service economy?

United States

McDonald's golden arches are a classic example of a

Brand mark

Clive is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process.

Business analysis

What type of retailing began with Montgomery Ward in the late 1800s?

Catalog marketing

In the United States, toothpaste is sold in tubes and ketchup is sold in plastic bottles. However, in other parts of the world, ketchup and tomato paste are also sold in tubes. If Heinz were to introduce ketchup in tubes in the United States, consumers might have a more difficult time recognizing the ketchup product due to the change in the _____.

Category-consistent packaging.

Saresh owns the Change-ezz, a salon specializing in the unique hair needs of minority populations. Recently, Saresh has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the salon's quality of service. Saresh's problem illustrates which of the following unique features of service?

Heterogeneity

Shopping products have a ____ inventory turnover and need ____ distribution outlets than convenience goods.

Lower; fewer

A ____ is responsible for a product, product line, or several distinct products in an interrelated group within an organization.

product manager

A narrow product mix with a deep product line would most likely be carried by

specialty retailers.

The brand name Hamburger Helper would most likely be considered

suggestive

Which of the following is an advantage of franchising?

​Limited capital is needed to start

Scenario 14.2 Use the following to answer the questions. ​ Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party. ​ Refer to Scenario 14.2. Clint's suggestion for the uniform rental service was either picking up and delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and deliver the uniforms with its own trucks, this is an example of a(n) ____ channel. If Star contracts this action to a third party, it is called ____.

direct; outsourcing

At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent. She states that she is willing to trade off the ____ incurred for the positive effect of better customer service.

higher warehousing costs

Veronica Montez works for Bicardi at a location away from the manufacturing plants. She provides wholesale services to wholesale and retail customers, but her facility does not carry inventory. Veronica works at a

sales office.

Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a flight on Southwest Air lines because, for a similar price to other airlines, it had a better reputation for service. For Shannon, this flight is an example of which type of product?

shopping

A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)

systematic review.

Sophia is the new marketing manager for a new line of laptop, MP3, and smart phone accessories made by the company, Skull Candy. These accessories are trendy, colorful, and more expensive than others on the market . After considering the target market for the products, Sophia has decided not to use marketing-related activities conducted on the telephone, called _____, and instead use _____, a type of nonstore retailing.

telemarketing; vending

Your company has a product that is struggling in its market. However, the product appears to have some strength left that can be exploited. Which of the following product deletion actions would be most appropriate for the product?​

​Reduce the price and implement a run-out strategy.

Scenario 15.1 Use the following to answer the questions. Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise. ​ Refer to Scenario 15.1. The Rain Forest Cafe and T-Rex Cafe are usually located in tourist-dense areas or large shopping malls in order to capture walk-by traffic. If the restaurants' primary focus was to obtain customers who are walking by, they would definitely not want which of the following locations?

free-standing buildings

Scenario 13.1 Use the following to answer the questions. ​ The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year. The children's playground is accessible for members only, and is a fenced and secured area. During the weekdays, children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has been very popular with the professionals who stop by for a swimming workout before or after work. ​ Many of the YMCA locations are very busy all day, however, the midtown "Y" is busier during the early morning and early evenings. At a recent meeting, Maya Sinclair, its manager, shared her concerns about getting more people into the "Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional members or charge more per member for the annual fee. ​ ​ Refer to Scenario 13.1. One of Maya's staff suggested that they offer senior citizens a free month of membership for every person they recommended to the "Y." This particular form of promotion would be designed to

increase positive word-of-mouth communication.

You are contemplating starting a services business in the next few months. You are inclined to start a services business because you know that the U.S. economy is rapidly becoming a services-based economy. You have the expertise to focus on either business services or consumer services. Which of the following statements is true about business and consumer services?​

​Demand for business services has grown more rapidly than for consumer services.

While on their family vacation, the Millers realize they left their camera at home. They purchase a disposable camera at an amusement park using their credit card, but never interact with a person. What type of retailing did this transaction most likely involve?

Automatic vending

____ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs.

Line extension

Use the following to answer the questions. ​ Megabus is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greyhound's traditional line is that there are more departure times and more stops in smaller towns along the way. ​ Refer to Scenario 11.2. What product(s) is Megabus marketing?

The ride between the cities, which is the core product, plus the supplemental features of Wi-Fi, video screens, and other technology.

Which of the following is an advantage of using an industrial distributor?

They help reduce a producer's financial burdens by extending credit to customers.

Greg works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks up their produce and has a regular route of grocers and restaurants that purchase quantities of the items he has on any given day. Greg's operation is which type of wholesaler?

Truck

Scenario 12.1 Use the following to answer the questions. ​ Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013. ​ About 18 months later, a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste. ​ Refer to Scenario 12.1. Cheetos produces several cheese snack products and is considering a new Cheetos brand of crackers. This new Cheetos brand of crackers would most likely be an example of

a line extension.

Use the following to answer the questions. ​ Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear, however this product is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. ​ Refer to Scenario 12.2. The group of people that management has assembled to take on the task of new-product development is best described as

a venture team.

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

heterogeneity

Twin-packs and six-packs are examples of

Multiple packaging

Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ____ quality.

credence

Who judges service quality?

customers

Quality modifications are changes that relate to a product's

dependability and durability.

The marketing channels for services are usually

direct from provider to customer.

The test-marketing stage

is a sample launching of the entire marketing mix.

Consumers are ________________likely to tell other people about a bad customer service experience compared to a good one.​

​two times more

Which of the following is not a common feature of a warehouse club?

Good customer service

____ is the value of the benefit that is given up by selecting one alternative rather than another.

Opportunity cost

What are the three primary tasks of order processing?

Order handling, order entry, order delivery

For which of the following products would exclusive distribution be most appropriate?

Rolls Royce automobile

Which of the following offers the widest product mixes and the deepest product lines?

Superregional shopping center

Scenario 12.1 Use the following to answer the questions. ​ Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013. ​ About 18 months later, a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste. ​ Refer to Scenario 12.1. In 2012, Cheetos was in which phase of new-product development?

Test marketing

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications.

aesthetic

The product deletion process is similar to the ____ step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits.

business analysis

A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called

category management.

IMA Wholesalers is a distributor of car repair parts and supplies, selling to both retailers and auto repair service businesses. Recently, IMA has been promoting the Pennzoil brand of oil over the Quaker State brand of oil by offering larger discounts to the channel members. If IMA continues to do this, ____ is likely to result.

channel conflict

A university's student body would be considered its ____ public, and parents, alumni, and trustees would be included as its ____ public.

client; general

Trying to link a motorcycle brand like Harley-Davidson to a food brand like Healthy Choice would be considered a poor decision in this type of branding.

co-branding

An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a

commission merchant.

Energizer batteries would be classified as which type of product?

convenience

A first class airline ticket offers a ____ service of transportation as well as ____ services of drink and food service, special boarding rights, and extra customer service.

core; supplementary

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of

dual distribution.

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using

dual distribution.

Organizational buyers are especially partial to direct marketing channels when

expensive and/or complex equipment is involved.

Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to

franchising

If a retailer needed help with store design and training sales personnel, it would most likely use the services of a

full-service wholesaler.

Supermarkets, discount stores, and hypermarkets can all be classified as

general merchandise retailers.

In the packaging for a new line of beef jerky, Hormel should avoid the use of ____ in its packaging.

green

Aggressive pricing is typical during the ____ stage of the product life cycle.

growth

An ad that stresses "Get the real Proactiv Solution; accept no substitutes!" is best geared for which stage of the product life cycle?

growth

Because of a service's ____, standardization and quality are difficult to control.

heterogeneity

Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jason's difficulty in expanding his practice involves the aspect of service called

inseparability

Personal trainers cannot complete their work without their clients present because of the ____ feature of services.

inseparability

Production and consumption of services must simultaneously occur due to the ____ characteristic of services.

inseparability

Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jason's difficulty in expanding his practice involves the aspect of service called

inseparability.

The three levels of brand loyalty from strongest to weakest are

insistence, preference, recognition.

Sales are most likely to have a direct relationship to product availability for products that use ____ distribution.

intensive

If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of

line extension.

Dropping an unprofitable product immediately is the best strategy when

losses are too great to prolong the product's life.

Service industries account for ____ of the gross domestic product of most developed nations.

nearly three-quarters

Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called

peak demand.

Demand-based pricing most closely relates to the ____ of services.

perishability

Scenario 12.2 Use the following to answer the questions. ​ Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear, however this product is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. ​ Refer to Scenario 12.2. The decision to delete the industrial product line of ice chests is an example of deleting a product through a(n) ____, while the decision to drop the thermal underwear line is an example of a(n) ____.

phase-out; immediate drop

Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define

physical distribution.

Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

pipelines.

TerraCycle is a company that takes waste and "upcycles" it into new products. Currently, TerraCycle markets a bicycle rack to schools, parks, and cities, that is made of recycled plastic. This rack does not scratch or damage the bikes as concrete and steel racks can, and is eco-friendly since it is made of waste material. Terracycle is differentiating its product based on

product features.

Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, maintains the display racks, and restocks when necessary. Lynn's job is best described as a

rack jobber.

After direct-marketing, the next slightly longer marketing channel adds a(n)

retailer.

Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many ____ qualities.

search

Antonio is planning a trip to Cancun for spring break. He will likely be able to evaluate the hotel's size, amenities offered, and prices by looking at information on its website. However, he won't be able to evaluate the comfort level of the bed or the friendliness of the employees until he actually spends time at the hotel. The type of evaluation attributes Antonio is using before his trip are called _______ and those he uses during the trip are called _____.

search; experience

Durable goods such as television sets and appliances generally reach their target markets through ____; goods such as car batteries and tires generally reach their target markets through _____.

selective distribution; selective distribution

When service companies change high-contact services into low-contact services, the

service becomes less personalized.

All of the following are elements of the inseparability characteristic of services except that

services are easy to standardize and control.

Lashawna is a concert promoter who works for singer Kanye West. She works very hard to make sure most of Kanye's concerts are sold out because she understands the concept of perishability, which means

that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.

An important difference between for-profit and nonprofit marketing is that

the goals of the nonprofit organization differ from the goals of the for-profit organization.

Order processing is defined as

the receipt and transmission of sales order information.

When Starbucks introduced their instant coffee brand, Via, the company only sold it in packages of three single-cup units. Starbucks' primary objective for selling Via in three-unit packages rather than single-unit packages was most likely

to encourage the consumer to try the product several times.

Surveys, focus groups, and customer comment cards are all methods used by service companies to

understand customer needs and expectations.

Nick Arnold's Auto Towing Service would best be described as a(n) ____ product.

unsought

According to the text, physical distribution cost tradeoffs enable firms to

utilize resources for greatest cost-effectiveness.

In service marketing, the most important link to the customer is

well-trained contact employees.

As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________________.​

​it allows you to customize your services to match the specific needs of individual customers