Principles of Marketing - Exam 2

Wells Fargo is a financial services organization with more than 70 million customers. They use their CRM as a way to connect and manage client social media responses along with improving their response time to customer questions. This example shows that _______. a. CRM helps Wells Fargo identify its profitable and unprofitable customers b. CRM does not assist managers in making decisions c. CRM assesses the competition d. CRM helps Wells Fargo select, hire, and train employees

a. CRM helps Wells Fargo identify its profitable and unprofitable customers

Omega Graphics Inc. specializes in publishing educational books. It recruits and trains college students to sell its products door to door. Which of the following forms of nonstore retailing is illustrated in this scenario? a. Direct retailing b. Telemarketing c. Automatic vending d. E-tailing

a. Direct retailing

All of the different cereals manufactured by NaturalBreakfasts carry the same brand name. NaturalBreakfasts uses family branding instead of individual branding. Which of the following illustrates the difference between individual and family branding? a. In individual branding, different brand names are used for different products, whereas in family branding several different products are marketed under the same brand name. b. Companies use individual branding when products do not vary in use or performance, whereas companies use family branding when products vary greatly in use or performance. c. Individual branding identifies the brand of a part that makes up a product, whereas family branding identifies the entire product. d. Individual branding is used when two brands receive equal treatment, whereas family branding is used when two brands borrow from each other's brand equity.

a. In individual branding, different brand names are used for different products, whereas in family branding several different products are marketed under the same brand name.

The Doran Company, which produces component parts for elevators, has co-located its engineering, logistics, and procurement divisions. Which of the following describes its demand-supply integration? a. The promises that salespeople make to customers can be delivered by the company's logistics arm. b. Costs, more than customer specifications, determine which raw materials are placed into production. c. The company gains efficiencies from ordering and using only those materials that lead directly to sales. d. Raw material inventories are always stocked well above the levels dictated by production capacity.

a. The promises that salespeople make to customers can be delivered by the company's logistics arm

Marco has an auto repair shop. When a customer needs his muffler replaced, Marco orders the part immediately from the AAA parts supplier. Marco likes to do business with AAA because of the speedy delivery of the needed parts. This allows Marco to complete the repair job and not make his customer wait. Why is it important for Marco to choose the right distribution channel? a. To ensure customer convenience b. To make services available less often c. To maintain a brand's image d. To standardize service quality

a. To ensure customer convenience

Kraft Jewelry sends Eleanor a birthday card along with a pendant as a token of appreciation for shopping frequently at its store. This trend in customer relationship management aims at cultivating its customers by_____. a. acknowledging their loyalty b. implementing technology c. providing time savings d. offering standardization

a. acknowledging their loyalty

The restaurant industry has been hit hard because of new rules requiring operators to close dining areas due to the health crisis. Many restaurants have pivoted to pick-up and delivery options. This example shows that ______ . a. as the restaurant environment changes, restaurants change b. as the retail environment changes, retailers maintain their traditional practices c. retailers should monitor the competition d. the retail environment is stable and unchanging

a. as the restaurant environment changes, restaurants change

The Food Company hires and trains workers with disabilities, and as a result the company has increased productivity by up to 25%. This example shows that companies that employ people with disabilities________. a. benefit from social sustainability b. are unaffected by social sustainability c. incur additional costs from social sustainability d. have a high level of absenteeism

a. benefit from social sustainability

Apple's products are well known and valued because the demand, customer loyalty, and company's price premium rank high in the consumer tech industry. This is an example of _______ a. brand equity b. brand loyalty c. brand mark d. individual branding

a. brand equity

Ali, a manager at Washington Clothing, organizes a survey to study the quality of the company's products. He instructs the survey team to interview readily accessible customers who visit the outlets during weekdays. In the context of nonprobability samples, Washington Clothing is most likely using a ______for its survey. a. convenience sample b. cluster sample c. stratified sample d. random sample

a. convenience sample

Because researchers receive faster replies to surveys, the completion time for a project is shortened. As a result, a company using mobile research experiences _______. a. cost savings b. less feedback c. narrower geographic reach d. decreased response rates

a. cost savings

A survey of the most frequently purchased brand of coffee provides a one-way frequency distribution that yields a general picture of a study's results. A________ lets the analyst look at the responses to one question in relation to responses from other questions such as association between gender and the brand of coffee bought most frequently a. cross-tabulation b. random error c. measurement error d. snowball sample

a. cross-tabulation

Isabella learned about a smartwatch when browsing a catalog. She then researched it on the company's website. Then she went to a retailer in the mall to try it on. Isabella finally purchased the watch using a mobile app. This example shows that_______. a. customers use a multichannel marketing strategy b. customers use a single channel marketing strategy c. retailers use intensive distribution as their marketing strategy d. retailers use exclusive distribution as their marketing strategy

a. customers use a multichannel marketing strategy

Kentucky Fried Chicken, with 18,875 stores in 118 countries and territories around the world, changed their recipe (the spiciness) for various regions. Even within China, the spiciness varies from region to region. Their menu changed also; for example, in Shanghai, KFC serves porridge for breakfast and Peking Duck burgers for lunch. This example shows that multinational firms must ______ . a. develop every new product for potential worldwide distribution b. standardize new products c. avoid changing products that are proven to be successful at home d. increase local advertising for their products

a. develop every new product for potential worldwide distribution

Tshawna makes jewelry and sells it online to customers around the world by showing her earrings, bracelets, and necklaces on her company website. Tshawna's use of electronic retailing is a good example of a(n)_______. a. direct channel b. wholesaler channel c. agent channel d. broker channel

a. direct channel

Every year, a manufacturer in New Orleans makes raincoats and employs its own fleet of vans to make the product available in stores across coastal Oregon and Washington just when the rainy season begins in those parts of the United States. The manufacturer is creating ________. a. form, time, and place utility b. form, time, and exchange utility c. time and place utility, but not form utility d. form and place utility, but not time utility

a. form, time, and place utility

Tesla, one of the highest-priced luxury hybrid and electric cars, is in the______stage. In this stage, Tesla is continuing to raise awareness and educate potential customers. Customers must learn about the car and its benefits before they decide to purchase one. In this stage, people are willing to take more risk and pay more to have the latest Tesla model. a. growth stage b. introductory stage c. decline stage d. maturity stage

a. growth stage

The Dream Company wanted to sell its gallon ice cream containers in Japan: however, the Japanese have small freezers. The Japanese also like ice cream far less sugary than Americans do. The Dream Company packaged a reduced-sugar ice cream in individual-sized containers. This example shows that had the Dream company not made the change it would have________. a. had little or no business in Japan b. changed Japanese preferences for sugary ice cream c. resulted in an increase in large freezer sales d. increased its ice cream export level

a. had little or no business in Japan

Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as type of frame, number of coils, and fabric characteristics. This form of labeling is an example of_______ a. informational labeling b. persuasive labeling c. grade labeling d. promotional labeling

a. informational labeling

Janelle is into running. As soon as she gets home from work at the hospital, she changes into her running clothes, puts on her high-quality running shoes, and goes outside to run. When her schedule permits it, Janelle participates in 5K runs to raise money for children's charities. She has met many friends who are also involved in running. The running groups that Janelle is involved with are examples of a. lifestyle segmentation b. income segmentation c. benefit segmentation d. geodemographic segmentation

a. lifestyle segmentation

Dhruv went to a doctor's appointment because he had flu-like symptoms. His appointment was for 2:00 p.m. He arrived at 1:45 p.m. He sat in the waiting room for 45 minutes. He was taken to an examining room and waited another 40 minutes before he was examined by the doctor. Dhruvwas furious. This example shows that _________. a. minimizing the amount of time customers wait is a key factor in service quality b. waiting is acceptable to customers as long as they receive the desired service c. services should be standardized across geographic regions d. shopper analytics could not improve the wait time problem

a. minimizing the amount of time customers wait is a key factor in service quality

Cascade Insights has been removing uncertainty in the tech sector for over a decade. With custom B2B market research, Cascade Insights helps technology companies up their competitiveness and identify new market opportunities. Clients include FinTech, MarTech, HealthTech, and EdTech. Cascade works only in the B2B tech sector, and does not do B2C. As CI consultants, which benefit does Cascade provide its clients? a. More effectively marketing their products and services b. Identifying areas for company growth c. Improving logistics d. Providing secondary research

a. more effectively marketing their products and services

Designers Inc. sells designer clothes in physical stores and on its website. The company has a distribution center in California for its online business and another in Michigan for its physical stores. When a customer in Michigan went to the local store to buy a purse, the shelves were empty, and she had to order it online. The purse was shipped to her home—at significant expense—from the California distribution center while the purse was in fact at the Michigan distribution center, waiting to be put on the shelves. This example shows that a________. a. multichannel design creates redundancy and complexity in the distribution system b. multichannel design does not create redundancy c. multichannel design does not create complexity in the distribution system d. multichannel design does not allow channel members to act as independent sales and profit centers

a. multichannel design creates redundancy and complexity in the distribution system

Gerber sells its baby foods all over the world and wants to find out what mothers want in terms of new products for their babies. The company wants to survey a global audience. Gerber needs a method that has flexibility in terms of time and a way for respondents to be gathered from all over the world. What do you think is the best research method to accomplish Gerber's goal? a. online focus groups b. experimental research c. mail intercepts d. universal sample

a. online focus group

Oriental Foods Inc. is a multinational food and beverage company. Its product labels focus on being foods that are easy to make in 5 minutes or less for a complete meal that's great for lunch or a snack. In this case, Oriental Foods is using _______ a. persuasive labeling b. informational labeling c. descriptive labeling d. grade labeling

a. persuasive labeling

The world's best coffee beans come from Costa Rica. Therefore, the more Costa Rican beans in a blend of coffee, the better the blend; and no company purchases more Costa Rican beans than Superior Coffee. Which positioning strategy is the company demonstrating? a. product differentiation b. product user c. competitor d. product class

a. product differentiation

A furniture manufacturer with a reputation for making plain, lightweight foldable steel chairs decides to make cushioned chairs with printed upholstery. The new type of chair will be a______ . a. product line extension b. discontinuous innovation or new-to-the-world product c. repositioned product d. lower-priced product

a. product line extension

Civicom Thought Light is a mobile app for collecting rich in-the-moment insights, including geolocation without a data connection. Civicom Thought Light can be used by a company for shopper insights through on-the-spot data collection using smartphones. This example shows that______. a. research using mobile surveys is convenient b. research using mobile surveys is in decline c. mobile surveys are less convenient than telephone surveys d. mobile surveys are used less often than mail questionnaires

a. research using mobile surveys is convenient

An oil company saved several million in transportation costs, increased delivery performance, and achieved cost savings that were passed along to customers. They did this by having different functional teams come together to discuss these topics at business meetings. This is an example of__________. a. sales and operational planning (S&OP) b. relationship integration c. the customer relationship management (CRM) process d. the order cycle time

a. sales and operational planning (S&OP)

Market Street Grocery check-out employees digitally enter the bar codes on all items as part of the check-out process. Market Street gathers purchase information by continuously learning which items at which price points customers prefer. This process allows Market Street to plan ahead when ordering from suppliers and restocking the shelves. This is an example of ____. a. scanner-based research b. evidence-based research c. observational research d. quota research

a. scanner-based research

The Hall Company is a craft store that wants to measure the success of its coupons, displays, and pricing structure. These elements can help the Hall Company prepare its marketing budget for next year. Length of research time is important because the new budget has to be prepared within a month. What research tool would be helpful for Hall Company? a. scanner-based research b. secondary research c. mail surveys d. mail intercepts

a. scanner-based research

The Shinn Company wants to manufacture a new mouthwash designed to fight cavities and whiten teeth. The Shinn Company looks at the previously collected data over the last three years on consumer preferences in mouthwash and looks to social media to see what customers are saying about its products. This is an example of _______. a. secondary data b. primary data c. marketing research d. management research objective

a. secondary data

In Mexico, Walmart has built stores with wider aisles than in U.S. stores. Walmart made this adjustment because in Mexico families have the habit of shopping together such that one family might bring six people to Walmart to shop. This example shows that _______. a. segmentation helps Walmart decision makers align with local customs b. segmentation identifies the needs of all Walmart customers c. Walmart should standardize all stores worldwide d. customer needs are the same worldwide

a. segmentation helps Walmart decision makers align with local customs

Xie goes to an appliance store to purchase a refrigerator. After comparing the technical features, prices, and durability of the various brands of refrigerators available, he purchases the cheapest and smallest in size. In this case, Xie has purchased a_______. a. shopping product b. business product c. specialty product d. convenience product

a. shopping product

West Texas Oil Field Supply and Joe's Pipeline enter an agreement such that West Texas Oil Field Supply can now use already established marketing channels of Joe's Pipeline. West Texas Oil Field Supply made this decision because it was too expensive and time-consuming to create a new marketing channel. This is an example of a(n)_______. a. strategic channel alliance b. agent/broker channel c. dual or multiple distribution channel d. gray marketing channel

a. strategic channel alliance

Walmart is based in Rogers, Arkansas. Many of Walmart's suppliers have relocated to Rogers in order to do business exclusively with Walmart. This example shows that a. suppliers gain an advantage by locating close to their markets b. suppliers have no need to locate close to their markets c. distant suppliers can compete in terms of price d. buyers prefer to purchase from distant suppliers

a. suppliers gain an advantage by locating close to their markets

Red Oak Inc., a furniture manufacturing company, manufactures furniture only when an order is received. It coordinates and integrates the activities of its suppliers, designers, and carpenters to ensure an efficient production cycle. This enables Red Oak Inc. to deliver the products to customers within five working days. This is an example of_______ management. a. supply chain b. customer relationship c. returns d. asset lifecycle

a. supply chain

Craft Brewery Inc., a leading multinational beverage manufacturing company, coordinates with Waste Recycling Inc., a waste management company, to create a strategy to recycle and reuse beverage bottles. Craft Brewery Inc. will install hundreds of machines that would recycle empty bottles in several locations and reward consumers who recycle. The company believes that this initiative would help protect the environment. In this scenario, Craft Brewery Inc. is practicing________. a. sustainable supply chain management b. outsourcing c. mass production d. demand-supply integration

a. sustainable supply chain management

One or more specific groups of potential customers toward which an organization direct its marketing program is a: a. target market b. tangent market c. market aggregation d. mass market e. promotional market

a. target market

Sally is a cellist in a string quartet. She buys products such as rosin and top-of-the line strings for her cello online from a purveyor of products for musical instruments. The online vendor has given Sally's information to other online suppliers. Now, Sally has received online notification about a new cello case that would fit her needs offered online by a German company. This example shows that _____. a. the use of real-time big data has provided new ways of reaching customers b. Sally would be better off visiting the music store to fill her needs c. the use of real-time big data has not provided new ways of reaching customers d. market segmentation offers fewer opportunities to market products

a. the use of real-time big data has provided new wats of reaching customers

Hobby Lobby scans all purchases at the check-out counter. Each product has a bar code to identify it. This technology allows Hobby Lobby to keep track of its sales, avoid stock-outs by reordering products from suppliers as needed, and show Hobby Lobby marketers which products are profitable. This is an example of_____. a. universal product codes b. product lines c. brand labels d. informational labels

a. universal product codes

Advertisements of Tailor's Soap show real women in its campaigns and commercials rather than celebrities. Which product positioning has Tailor's Soap chosen for marketing its soap? a. uses or applications by means of positioning b. price and quality c. attribute d. product class

a. uses of applications by means of positioning

The marketing managers of Sibel Inc., a food products company, created a dedicated software system to receive customers' feedback on the company's latest products. Customers who log into the company's networking site are directed to a page where they can answer a questionnaire. The managers can query the server at any time and collect the data required. In this scenario, Sibel Inc. is most likely using a(n)_______. a. web survey system b. online panel provider c. web phishing system d. online focus group

a. web survey system

Sara's Spaces is a self-service chain of service stations with stores that are located near residential areas. It is open long hours and offers fast service in exchange for charging premium prices. Its customers are beginning to demand more from the company, such as higher-quality food and lower prices on staple items such as gasoline and milk. Which type of retailer is Sara's Spaces? a. Supermarket b. Convenience store c. Superstore d. Specialty store

b. Convenience store

Which customer behavior has motivated retailers to reduce the amount of stock kept on hand, rent or lease smaller spaces, and ramp up their fulfillment capabilities at distribution centers? a. Customers visit an online retail store to examine product features or quality, but then eventually make the purchase in a physical store. b. Customers visit a physical retail store to examine product features or quality firsthand, but then eventually make the purchase online. c. Customers visit an online retail store to buy a single product but eventually buy several related items that are not often stocked in a physical store. d. Customers visit a physical retail store to buy a single product but eventually buy several related items that are not often stocked in an online store.

b. Customers visit a physical retail store to examine product features or quality firsthand, but then eventually make the purchase online

In a particular supercenter, a customer picks up a Frozen II Blu-ray disc to examine before purchase. The retailer uses technology to suggest related items, such as other videos by the author and Frozen II merchandise, via the customer's mobile phone. What technology is the store using? a. Beacon b. RFID c. Swarm d. Click-and-collect

b. RFID

Helen likes Fiber One cereal and eats Fiber One almost every morning. When she went to the grocery today, there was no Fiber One on the shelf. According to research, how does a customer like Helen typically view a product that is out of stock? a. Customers view stockouts as an indication of the store's poor management of inventory. b. The stockout will lead the customer to buy an item that is similar to the out-of-stock item. c. Customers who cannot buy the out-of-stock item will not buy an item similar to that item. d. The tendency to buy an out-of-stock item decreases with every subsequent stockout.

b. The stockout will lead the customer to buy an item that is similar to the out-of-stock item.

Massages For You offers single massages at the price of $75. However, if you buy a one-year membership, you will have a monthly fee of $65 per massage. What selling technique is Massages For You using in this example? a. Store atmosphere marketing b. Trading up c. Suggestion selling d. Destination marketing

b. Trading up

Sport Time Inc., a multinational retail corporation, uses a device that sends customers a marketing message via email or text when they are near a store. This is an example of _____. a. cloud computing b. a beacon c. shopper marketing d. click-and-connect

b. a beacon

Airbnb has forever changed the travel and recreation industry. No matter where a traveler goes, they trust that they will have the best vacation experience when booking with Airbnb. Its name is recognizable outside of its customers and the company supplies its marketing and finanical data. Airbnb is an example of ______ a. a local brand b. a global brand c. brand equity d. a brand mark

b. a global brand

Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are considered members of: a. a product life cycle. b. a marketing channel. c. an administration system. d. a cartel. e. a facilitating channel

b. a marketing channel

Carol has developed a new needle threader for stitching. She has used the needle threader herself and contacted all of the other stitchers in her area. After months of research, she decided that other stitchers were satisfied with the needle threaders they already used and that she couldn't make a profit by selling her new needle threader. This example shows that _____. a. carol should keep trying to sell her product b. a segment must be large enough to warrant developing and maintaining a product c. carol's needle threader didn't work very well d. people who enjoy cross-stitch and needlepoint do not form a market segment

b. a segment must be large enough to warrant developing and maintaining a product

West Texas Traders provides expertise for a range of products within a category. The company markets and facilitates the sale of many different manufacturers' products to a grocery chain. However, West Texas Traders never takes ownership of any food products, so it would be considered a(n)________. a. retailer or a wholesaler b. agent or a broker c. broker or a manufacturer d. agent or a wholesaler

b. agent or a broker

Ford wanted to break into the electric vehicle (EV) marketplace. At that time, economic value was more highly prized than form and function. Therefore, Ford chose not to compete with the other brands and targeted the high-end market for electric vehicles. Which base did Ford use to position itself in the market? a. product user b. attribute c. competitor d. emotion

b. attribute

Reynold's Furnishers is experiencing a period when their sales are increasing at a slower rate. The company realizes that new users cannot be added indefinitely and that, sooner or later, its market will approach saturation. Which stage is the company now entering? a. End of the decline stage b. End of the introductory stage c. Beginning of the growth stage d. Beginning of the maturity stage

b. beginning of the maturity stage

The decision an organization makes to use a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors is called _______. a. licensing b. branding c. copyrighting d. trademarking e. product identification

b. branding

Jonas, a retiree, wants to use his savings to open a day care facility for dogs. After deciding on the services that he would provide to his customers, he calculates costs versus the demand and the profit he could make depending on the volume of sales. After extensive deliberation, Jonas decides to take a bank loan because the needed initial investment is too high for opening the facility. Jonas is currently in the ______ stage of the newproduct development process. a. commercialization b. business analysis c. idea generation d. test marketing

b. business analysis

Craft Brewery wants to add a brown ale beer to its existing line of alcoholic products. The questions the company currently is asking itself are the following. What is the likely demand for the product? What impact would the new product probably have on total sales, profits, market share, and return on investment? How would the introduction of the product affect existing products? At what stage of new-product development process is this company? a. Developmental stage b. Business analysis stage c. Marketing stage d. Screening stage

b. business analysis stage

Teavana has a shop in the airport and offers samples of the newest flavors of tea. Travelers who are waiting for their flights can taste the new tea at Teavana and answer a short survey on a tablet handed to them by a Teavana employee about the latest flavor. This is an example of which type of primary data? a. focus group b. computer-assisted self-interviewing c. observation research d. mystery shopper

b. computer-assisted self-interviewing

Logan's Roadhouse has become popular with a variety of people. It recently identified a primary customer segment in Millennials. To win over this demographic group, traditional media is less authentic in the perception of Millennials; therefore, Logan's Roadhouse does not use traditional media, and its marketing and promotion focus on maintaining a large online and social media presence. Here Logan's is likely to use_____ a. undifferentiated targeting b. concentrated targeting c. multisegment targeting d. differentiated marketing

b. concentrated targeting

The Lincoln Company produces a wide range of furniture, such as cabinets, bookcases, and bureaus. It divides its consumer market into several groups of people who have similar interests in wooden furniture. The strategy of dividing its consumer market most likely a. allows the Lincoln Company to meet the market's needs with a single marketing mix b. enables the Lincoln Company to define customer needs and wants more precisely c. eliminates the need for developing marketing objectives d. allows the Lincoln Company to use an undifferentiated targeting strategy

b. enables the Lincoln Company to define customer needs and wants more precisely

Francisco, an affluent college graduate, buys gadgets on the day of their launch in the market. He reads expert reviews on the internet and is not influenced by the opinions of his family and friends while choosing products. Francisco is most likely to belong to the category of ________in the context of diffusion of innovation a. the late majority b. innovators c. the early majority d. early adopters

b. innovators

Hobby Lobby, a craft goods store, has a 40%-off coupon a customer can download on a smartphone while shopping. At the check-out counter, the cashier scans the bar code of the coupon, and the customer pays 40% less on the item. This is an example of ___ . a. nonstore retailing that enables customers to shop at home b. integrating the in-store experience with mobile technology c. using self-service technology to sell products d. using automatic vending machines to sell products

b. integrating the in-store experience with mobile technology

Xin's Candy Company uses the tools of customer relationship management. Xin has learned that mothers want to give their children candy that is healthy. Xin has used this customer information to develop a product line of vitaminenriched candy. Which of the following is the step that Xin's Candy Company must now follow in the CRM cycle? a. identify its best customers b. leverage customer information c. capture relevant customer data from interactions d. understand the interactions with its current customer base

b. leverage customer information

Sounds Inc., a distributor of audio equipment, component parts, and supplies, takes title to all its products. It operates a few warehouses where it stores the finished goods and reships them to its clients, resellers, and other vendors. Sounds Inc. is an example of a _______. a. sales agent b. merchant wholesaler c. retailer d. broker

b. merchant whoelsaler

MyPillow.com uses television advertising and wanted to see whether the TV ads reached more viewers during the daytime spots or the prime-time spots. MyPillow wanted to adjust its TV spots to reach the greatest number of viewers. To get real-time reactions, MyPillow decided to conduct mobile market research because _____ . a. most people do not multitask using smartphones b. most people do not use their desktop computers while watching TV c. using a mobile app is difficult and confusing d. fewer respondents are reached than in conducting telephone research

b. most people do not use their desktop computers while watching TV

Samsung is best known for its smartphones, tablets, and televisions. Years ago, when it decided to expand its business activities and operations into ship building and military hardware, it was gearing to offer______ . a. discontinuous innovations or new-to-the-world products b. new product lines c. repositioned products d. product line extensions

b. new product lines

Jerry Wong wants to buy corporate gifts for his employees. He considers numerous suppliers of corporate gifts, both familiar and new; solicits bids; and studies all proposals carefully before selecting a supplier. Jerry Wong's purchasing profile could be characterized as a(n) _______. a. satisfier b. optimizer c. venturist d. close-fisted buyer

b. optimizer

Mala, the manager of a jewelry store, conducts statewide market research and collects data on customer preferences for various jewelry items. Based on her findings, she has to create a forecast of the items that customers are most likely to purchase. In this scenario, Mala will most likely be performing the ______of marketing research. a. prescriptive role b. predictive role c. descriptive role d. diagnostic role

b. predictive role

Procter & Gamble is a multinational corporation selling consumer goods under various categories such as foods, beverages, cleaning agents, and personal care products. This example shows that a company can position its products in a________associated with one category or, as Procter & Gamble has done, disassociate products from one category and use several categories a. product user b. product class c. product differentiation d. repositioning

b. product class

Hedge, a smartphone manufacturer, has launched its new products—HY15, HY20, and HY50. These smartphone models are part of its HY series. HY15, being the most budget friendly, attracts more consumers and achieves better sales. In this scenario, Hedge's HY15 smartphone model is an example of a(n)______. a. convenience product b. product item c. unsought product d. product line

b. product item

Thumbs Up sells soft drinks, juices, different types of waters, sports drinks, energy drinks, and teas. Taken together, these products are considered Thumbs Up's ______. a. product line b. product mix c. product mix width d. product line depth

b. product mix

Once known as an outdoors brand, in 2006 Kate Spade revamped its product line to reinvent itself as a luxury brand by harnessing the power of heritage. Which strategy did Kate Spade use to influence the overall perception of its brand in the eyes of its old and potential new customers? a. positioning b. repositioning c. perceptual mapping d. product differentiation

b. repositioning

Frances Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core customers according to demographic variables such as income, ethnic background, and family life cycle. These demographic variables are examples of _______. a. product bases b. segmentation bases c. product categories d. market segments

b. segmentation bases

Expressions Inc., a toiletries manufacturing firm, has launched a new range of organic sanitizing wipes. It wants to test its consumers' reactions to this new product in an economical way. Therefore, Expressions creates flyers that advertise several of its products along with the new product and send them to a few selected members of the target market. Besides this, it also takes the members to a mock shop and monitors their shopping behavior. In this scenario, Expressions is using_______ . a. scanner-based research testing b. simulated (laboratory) market testing c. virtual test marketing d. traditional test marketing

b. simulated (laboratory) market testing

The Big Outdoors, a specialty store that sells adventure sports gear, employs one salesperson per customer. Each salesperson is trained to influence customers to purchase other items related to the products they have purchased. In this scenario, The Big Outdoors is using _______ as its marketing strategy. a. low employee density b. suggestion selling c. merchandise type d. trading up

b. suggestion selling

When Amit was in the airport waiting for his flight, he passed the time by taking a quick mobile survey. Amit completed the survey as he was standing in line ready to board his plane. Amit was able to send and respond to direct and immediate questions. Amit's situation shows that _______. a. mobile apps are difficult to use b. the mobile survey experience can be easy c. the mobile technology experience is less intuitive d. mobile technology cannot upload photos for survey purposes

b. the mobile survey experience can be easy

CarWorks, an automobile company, uses a unique tire design on its vehicles. A rival company was found copying the exact design for its automobiles. CarWorks filed a legal claim against the rival company regarding this issue and won the lawsuit. In this scenario, CarWorks's unique tire design is a registered _______ . a. captive brand b. trademark c. private brand d. service mark

b. trademark

Darius wanted to buy a roll of packing tape at the grocery store. He searched the aisle that had office supplies and couldn't find it. After finding a store employee, he learned that the packing tape was located in a display of holiday items and placed on a top shelf. A product like the packing tape may be located where customers like Darius cannot easily find it or an employee may provide mistaken information about a product's features or benefits. In this case, the service delivery failure was_______. a. intentional b. unintentional c. avoidable d. unexpected

b. unintentional

The Link Corp. manufactures a special kind of filter that can purify water quickly, but consumers in the market are not aware of the product's existence. In this case, which of the following strategies will increase the sales of the filter? a. Using status-conscious advertising b. Using direct response advertising c. Using selective advertising d. Using customer-generated advertising

b. using direct response advertising

Miguel goes online and orders athletic shoes from Academy Inc. He pays with a credit card and picks up the shoes at the local Academy Inc. store. Which of the following statements describes Miguel's click-and-collect shopping habits? a. It requires representatives to sell products door to door, in offices, or at in-home sales parties. b. It employs outbound and inbound telephone contacts to sell directly to customers. c. It enables consumers to make their purchases online and pick up their orders from physical stores. d. It allows customers to shop over the internet and have items delivered directly to their doors.

c. It enables consumers to make their purchases online and pick up their orders from physical stores

Which of the following is a difference between an off-price retailer like Marshalls and a department stores like Dillard's? a. Marshalls keeps a greater amount of floor stock, whereas Dillard's keeps a lower amount of floor stock. b. Marshalls charges customers higher prices, whereas Dillard's charges customers lower prices. c. Marshalls focuses on lean inventory management, whereas Dillard's has an agile approach to inventory. d. Marshalls focuses on providing high-quality customer service, whereas Dillard's deemphasizes customer service.

c. Marshalls focuses on lean inventory management, whereas Dillard's has an agile approach to inventory

Riko owns a business and tries to find out as much as possible about her customer base so she can stock the products that her customers are looking for. ________is an emerging retailing trend that employs market data to best serve customers such as those whom Riko serves as they prepare to make a purchase. a. Channel omnification b. Click-and-collect c. Shopper marketing d. Cloud computing

c. Shopper marketing

When you purchase a gallon of milk, which of the following is creating exchange utility? a. The transport company b. The government c. The supermarket d. The dairy

c. The supermarket

Encore Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car, the Operator 2.0, that becomes highly successful in the market because of its economical price and excellent features. However, this leads to a significant decline in the sales of Encore Inc.'s other cars. This scenario exemplifies_________ . a. segmentation b. differentiation c. cannibalization d. personalization

c. cannibalization

The Google Ventures design team uses a brainstorming process called "note-and-vote" for naming companies, choosing product features, setting meeting agendas, or picking a restaurant. Everyone writes down ideas, reviews the ideas, shares the ideas, and votes on the ideas in only 15 minutes. This example shows that brainstorming can be successful if a group _________ . a. arrives at a solution within set parameters b. promotes a solution without varying it c. discusses ideas while avoiding criticism of them d. criticizes an idea until it is acceptable to all

c. discusses ideas while avoiding criticism of them

Market Street Grocery carries a complete line of products that appeal to Hispanic customers. Market Street buys cleaning products such as Fabuloso, food products such as tortillas and tacos, and birthcards written in Spanish from its suppliers. This is an example of segmentation based on a. age b. gender c. ethnicity d. lifestyle

c. ethnicity

Managing service quality is important for all of the following reasons EXCEPT ______ . a. if service firms can't meet demand, they turn down prospective customers b. if service firms can't meet demand, service levels slip c. if service firms can't meet demand, they can expand capacity d. if service firms can't meet demand, they cannot expand capacity

c. if service firms can't meet demand, they can expand capacity

Geraldo, a construction worker, tends to buy a new gadget if most of his friends have them and only after they've teased him about not having the gadget yet. He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions. It can be inferred that when it comes to the diffusion of innovation Geraldo belongs to the group of _____. a. early adopters b. innovators c. late majority d. early majority

c. late majority

The Shaw Corp. manufactures and sells accessories for cell phones. To boost its sales, the research and development team decides to use product modification as an approach to new product development. In this scenario, the research and development team will most likely_______. a. eliminate products that are inconsistent with Shaw's business mission b. develop products by applying new technology c. make a slight change in the design or function of the existing products d. add new products to supplement Shaw's established product line

c. make a slight change in the design or function of the exisiting products

Which of the following is NOT an advantage of mobile research surveys? a. cost savings b. immediate feedback c. narrow geographic reach d. increased response rates

c. narrow geographic reach

Adidas is using 3D printed shoes which will be custom made at first and then mass manufactured, as unit costs fall. Three- dimensional printing is expected to dramatically reduce businesses' carbon footprints because the technology_______. a. enables the use of only recyclable raw materials and renewable energy sources b. will be heavily taxed so that the tax revenues can be channeled into green programs c. nearly eliminates transportation of finished goods to distribution centers and retailers d. is usable only locally and thus will tend to promote local economies that are small

c. nearly eliminates transportation of finished goods to distribution centers and retailers

Yater's Inc. is a food and beverage company based in the United States. The company decides to market and sell its products in all European countries under the same brand name. In this scenario, Yater's Inc. has decided to use a(n)______. a. transactional marketing strategy b. co-branding strategy c. one-brand-name strategy d. individual branding therapy

c. one-brand-name strategy

Patsy has a Mary Kay cosmetic business. She uses word-of-mouth selling techniques to promote her products and encourages her customers to have at-home parties so that she can demonstrate her products and take orders. The only problem is that Patsy doesn't speak Spanish and she lives in a predominantly Spanish speaking community. This example shows that_______. a. Patsy's business meets the criterion of accessibility b. Patsy's business meets all criteria for a useful segmentation scheme c. Patsy must be able to reach and speak to members of targeted segments d. Patsy has too small of a market to be successful

c. patsy must be able to reach and speak to members of targeted segments

A __________ is the marketing term for a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value. a. marketing strategy b. utility c. product d. process e. market factor

c. product

Cortez Foods Inc. is a company that manufactures packaged food. It sells several varieties of packaged food such as chips, cupcakes, candies, crackers, fruit juices, and carbonated drinks. It receives its largest profit from its newly introduced line of tropical fruit juices that are available in different flavors, such as orange, apple, lychee, and cranberry. Recently, Cortez has been exploring mixing flavors and has created a new lychee and cranberry juice drink. This is an example of a________. a. product line b. product mix c. product modification d. repositioning

c. product modification

Geraldo is a customer care executive at a telecommunications service provider. He receives a complaint from a customer about an unnecessary $20 charge on his phone bill. If the company follows the customer service management process, Geraldo is most likely to________. a. forecast whether such problems will arise in the future b. integrate the company's internal capabilities with the customer's needs c. provide a quick response to the customer using customer care software d. resolve the complaint only if the customer is highly valuable to the company

c. provide a quick response to the customer using customer care software

A company well known for its easy-to-cook breakfast cereals was facing stiff competition from the many players in the market. The company changed its campaign to focus on dietary needs rather than just convenience, thus targeting a segment of consumers looking for healthy diet. This is an example of a _____. a. product line extension b. discontinuous innovation or new-to-the-world product c. repositioned product d. new and improved product

c. repositioned product

The Nature Company manufactures cereal using only organic ingredients. To find out what the public wants in a cereal, the Nature Company uses mobile surveys because it can share photos, videos, and voice recordings with new and potential customers via smartphones. The advantage of mobile research shown in this example is______. a. immediate feedback b. broader demographic reach c. richer content d. increased convenience

c. richer content

Nordstrom's Rack is an off-price retailer that sells designer clothes. All of the following describe off-price retailers like Nordstrom's Rack EXCEPT ________. a. they deemphasize customer service b. they deemphasize product selection c. they favor higher prices d. they focus on lean inventory management

c. they favor higher prices

Fresh Air, an online retailer of sports equipment, was trying to decide what action to take regarding the company website. The management decision problems involved learning whether a rebuilt website would increase Fresh Air's market share and profits. These issues were less specific than Fresh Air's actual marketing research problem. Which of the statements is true about Fresh Air's management decision problems? a. They are far less general than marketing research problems. b. They must be narrowly focused if the research effort is to be successful. c. They tend to be much broader in scope than marketing research problems. d. They tend to be information oriented.

c. they tend to be much broader in scope than marketing research problems

Frederica Perfumes is a premium, exotic women's fragrance company. The manufacturers of Frederica Perfumes want to establish its products as specialty products. In this case, which of the following would be an objective of the manufacturers of Frederica Perfumes? a. To employ mass advertising strategies b. To increase the distribution network c. To focus on establishing a brand name d. To decrease the prices of the products

c. to focus on establishing a brand name

Forever Inc. is a confectionery company that manufactures candies. It does not use specific strategies to target children when marketing its products. Instead it uses the same strategies to promote its candies among all consumers in the market. In this scenario, Forever uses a(n) _______. a. multisegment targeting strategy b. individual targeting strategy c. undifferentiated targeting strategy d. concentrated targeting strategy

c. undifferentiated targeting strategy

Austrian company Red Bull is such an effective marketer that many Americans assume it's a local brand. Its most successful tactic is to host extreme sports events globally and take the brand everywhere. Also, Red Bull looks like a global product, not like a traditional American soft drink in a 12-ounce can, with script lettering like Pepsi or Coke. It looks European. This example shows all of the following EXCEPT that_________ . a. global marketers design their products to meet regulations in major markets b. Red Bull develops products that can be sold in most markets c. sponsoring global events helps a brand gain local appeal d. Red Bull should localize its packaging to appeal to global customers

d. Red Bull should localize its packaging to appeal to global customers

WaterSaver is a specially designed product that retrofits into your existing water faucet and atomizes the water stream in a spray that lets you use 98% less water when washing hands, brushing teeth, and washing produce or dishes. Some consider this a game changer for environmental protection, especially in regions of water scarcity. This product would be categorized as_______. a. a repositioned product b. a product line extension c. a revised product d. a discontinuous innovation or new-to-the-world product

d. a discontinuous innovation or new-to-the-world product

Strategies to create the perception that multiple channels function as one channel in order to create a seamless shopping experience do NOT include________ . a. purchasing an item through an app for in-store pickup b. checking a store's inventory online c. enabling mobile payment while shopping in a store d. adopting a selective distribution strategy

d. adopting a selective distribution strategy

The types and number of intermediaries the producer should use are determined by all of the following EXCEPT ________. a. product characteristics b. buyer considerations c. market conditions d. cloud computing

d. cloud computing

Flora, the owner of an ice cream parlor, has been experimenting with different flavors to create a new exotic ice cream for her customers. After much deliberation and many tests, she decides to market the new Beet Cake with Pecan variant. In this scenario, the chosen ice cream flavor has entered the_______ stage of the newproduct development process. a. business analysis b. development c. test marketing d. commercialization

d. commercialization

Whole Foods satisfies its customers by carrying fresh organic produce and gluten-free products. Whole Foods is not a low- price grocery store, but it uses data analytics to understand what is important to satisfy its customer base. To decide which customers will be satisfied, a retailer like Whole Foods makes decisions about all of the following EXCEPT _______ . a. targeting b. segmentation c. the retailing mix d. customer demographics

d. customer demographics

NaturalOats, an oatmeal cookie product, has been in the market for more than seven years and is now in its decline stage. In this case, which of the following strategies would be successful in marketing NaturalOats? a. Lengthen the product line b. Focus on adding new users c. Spend heavily on advertising to educate consumers about the product's benefits d. Eliminate all nonessential marketing expenses and let sales decline

d. eliminate all nonessential marketing expenses and let sales decline

Ricardo runs Moonlight Café, a world-renowned fast-food restaurant, in his locality. He started the restaurant after getting a license from Moonlight Café and by regularly paying a fee for the right to use its brand name, products, and methods of operation. Ricardo most likely operates a(n)________ . a. independent retail store b. warehouse club c. chain store d. franchise

d. franchise

Kim Inc, a battery manufacturing company, began marketing its products as environmentally friendly and biodegradable, even though this has not been scientifically verified. In this scenario, Kim Inc. has used_______ to sell its products a. quality modification b. product line extension c. repositioning d. greenwashing

d. greenwashing

Self-driving cars are still being tested, but firms hope to sell to early adopters relatively soon. To date, the only platform taking passengers in fully driverless vehicles is Waymo, a Google spinoff. It is the sector's presumed front-runner. In Phoenix, for example, Lyft customers order up Waymo minivans. Self-driving cars are in the ______ stage of the product life cycle. a. decline b. growth c. maturity d. introductory

d. introductory

Lewis bought his first LED flat screen television after flat screen televisions were already widely diffused. He is most likely to be one among the______ . a. early adopters b. early majority c. late majority d. laggards

d. laggards

Target uses data for accurate supply chain forecasting. Target wants its shipments to be rerouted in the event of traffic or bad weather and wants its warehouses to be stocked with exactly the products customers want. Target's supply chain analytics programs have many objectives that _________. a. mean higher prices for customers but will lead to greater customer satisfaction b. mean higher prices for customers and thus lower customer satisfaction c. offer lower prices for customers but lead to lower customer satisfaction d. offer lower prices for customers and lead to greater customer satisfaction

d. offer lower prices for customers and lead to greater customer satisfaction

Force Energy Drinks wanted to find out how its new flavors and new packaging were rated by its customers. After checking on different research methods Force Energy Drinks decided to conduct a study that can be sent out to thousands of potential respondents automatically, that will have a high response rate, and that can also keep costs low. This is an example of a(n)_______. a. in-home personal interview b. focus group c. mail survey d. online survey

d. online survey

Yoplait, a manufacturer of dairy and plant-based products, sells coffee creamer, milk, and yogurts. It markets a number of yogurts, including Yoplait fat free, Yoplait low sugar, and Yoplait Light. The large variety of yogurts sold by the Yoplait brand is collectively an example of a _______ . a. market segment b. target market c. product mix d. product line

d. product line

A cell phone manufacturing company is said to functionally modify one of its products if it______. a. introduces a sleek and stylish version of the cell phone with the same specifications b. reduces the price of the cell phone ahead of a sale c. introduces stylish headphones for the cell phone d. releases a software update to fix the cell phone's overheating problem

d. releases a software update to fix the cell phone's overheating problem

Carrie is considering several different universities. She wants a university that has a strong pre-med program because she wants to become a doctor. She also wants a university that is small. Furthermore, Carries doesn't want to go too far from her home in Indiana. A university is an example of a heterogeneous shopping product, and Carrie is having difficulty comparing universities because of all of the following EXCEPT______. a. the prices vary significantly b. the quality of the courses varies significantly c. the distance from home varies significantly d. the universities considered are all the same

d. the universities are all the same

My Pillow sells pillows, mattress toppers, and sheets made of cotton sourced in Egypt. My Pillow presents its promise of "the best night's sleep in the whole wide world or your money back" using nontraditional marketing channels such as mail order, television or video channels, and infomercials. Which of the following is true of My Pillow's nontraditional channels? a. They increase a brand's coverage in the market. b. They are used to sell stolen or counterfeit products. c. They lead to competition between distribution channels through cannibalization. d. They may help differentiate a firm's product from the competition.

d. they may help differentiate a firm's product from the competition