marketing review
McDonald's announced that at select locations, if drive-through customers do not get exactly what they want within two minutes of placing the order, their next meal will be free. This promise by McDonald's is a good example of a(n): A. service guarantee. B. warranty. C. unit price. D. limited warranty. E. no-fault insurance policy
Correct answer: A
Which of the following statements about the Lanham Act is TRUE? A. It spells out what kinds of brand names can be protected. B. Registration under the Lanham Act only applies to licensed brands. C. The Lanham Act makes registration of a brand name mandatory. D. Registering under the Lanham Act does not help protect a trademark to be used in foreign markets. E. All of these statements about the Lanham Act are TRUE. The Lanham Act of 1946 spells out what kinds of marks including brand names can be protected and the exact method of protecting them. The law applies to goods shipped in interstate or foreign commerce.
Correct answer: A
Characteristics of a good brand name include all of the following except: A. Be easy to spell and pronounce. B. Be trendy. C. Describe the product and key benefits. D. Be legally available for use by the firm. E. Connotes positive imagery
Correct answer: B
Top management of a large company recently approached the dean of a major business school about starting a specialized MBA program for the company's employees. After further discussions, the dean decided that the program did not fit well with the objectives and resources of the school, so the program was put on the "back burner" until conditions changed. The proposed MBA program was at what stage of the new-product development process when it was shelved? A. Idea generation B. Screening C. Idea evaluation D. Development E. Commercialization
Correct answer: B
Kodak announced that it would no longer produce 35 millimeter film cameras, but would manufacture digital cameras exclusively. Sales of digital cameras have grown steadily and have far outpaced the sale of 35 mm cameras in recent years, even among professional photographers. Kodak's decision indicates that 35 mm cameras are probably in the ________ stage of the product life cycle. A. Market introduction B. Market growth C. Sales decline D. Market maturity
Correct answer: C
Jack White wanted to purchase a new dress shirt. He went to a local department store, toured the men's department, and thought all the brands looked about the same. He decided to buy the store brand shirt, because it was the cheapest. For Jack, the new shirt was a(n): A. convenience product. B. heterogeneous shopping product. C. specialty product. D. homogeneous shopping product. E. impulse product
Correct answer: D
Marketing managers should recognize that: A. product life cycles appear to be getting longer. B. every segment within a market has the same product life cycle. C. the product life cycle describes the sales and profits of individual products, not industry sales and profits. D. firms that enter mature markets have to compete with established firms for declining industry profits. E. None of these alternatives is correct.
Correct answer: D
Which of the following statements about new-product development is true? A. The process should be informal to encourage innovation. B. The greatest number of product ideas is in the idea evaluation stage. C. The best criteria for evaluating new product ideas in the early stages is return on investment (ROI). D. The process should have top management support. E. All of the above statements are true
Correct answer: D
Chocolate Dreams is a manufacturer of expensive, high- quality, hand-made "old style" candies that are sold through fine department stores and certain bookstores and fine gift shops. The ideal market exposure for products manufactured by Chocolate Dreams is: A. intensive. B. comprehensive. C. exclusive. D. extensive. E. selective.
Correct answer: E
Heinz has a new ketchup bottle that has the cap on the bottom, instead of the top. The bottle uses gravity to help the consumer get every last drop of ketchup out of the bottle. The cap is also designed to pour cleanly, so that dried ketchup does not accumulate around the opening. This new bottle demonstrates how packaging can: A. promote product. B. protect the product. C. lower distribution costs. D. incorporate UPC codes. E. enhance product usage.
Correct answer: E
Lisa Campos was interested in buying a coffee pot to use at college and a cassette player for her sister's birthday present. At the local discount store, she compared prices on coffee pots and chose the cheapest. She read the product information on each cassette player and finally chose one with stereo headphones and a rechargeable battery. For Lisa, the coffee pot was: A. a convenience product, but the cassette player was a specialty product. B. a heterogeneous shopping product, but the cassette player was a staple. C. an impulse product, but the cassette player was a convenience product. D. a specialty product, but the cassette player was a heterogeneous shopping product. E. a homogeneous shopping product, but the cassette player was a heterogeneous shopping product.
Correct answer: E
Which of the following is the BEST example of management thinking during the "production era"? Select one: a. "If we produce a good product, customers will find us and buy it." b. "The more salespeople we have, the more we can sell." c. "We need to work hard to sell the product to our customers." d. "We should only make products that are easy to produce." e. "We need to find out what the customer wants."
The correct answer is: "If we produce a good product, customers will find us and buy it."
A retailer pays a wholesaler $24.00 for an item and then sells it with a 25 percent markup. The retailer's selling price is: Select one: a. None of these alternatives is correct. b. $32.00. c. $30.00. d. $56.00. e. $48.00.
The correct answer is: $32.00.
Which of the following best illustrates communication "noise"? Select one: a. A Pepsi ad that has rap music in the background. b. A TV ad is recorded at a higher volume than is used for most TV shows. c. A political candidate rides through town in a car with a loud speaker-asking pedestrians to vote for her. d. Magazine sales reps telephone consumers to offer low-price subscriptions. e. A motorist doesn't hear a radio ad because she is being stopped by a police officer for speeding.
The correct answer is: A motorist doesn't hear a radio ad because she is being stopped by a police officer for speeding.
Which of the following is least likely a result of shifts in the cultural and social environment? Select one: a. Sony recruits more women graduates for sales management positions. b. BMW builds its new plant in South Carolina because of the willingness of "Sun Belt" workers to put in a "full day's work." c. Domino's Pizza finds that demand for pizza delivered at home has expanded as more consumers are willing to pay for more convenience. d. Haagen-Dazs introduces a nonfat yogurt that is also "low cal." e. A toy manufacturer recalls a playpen with a defective latch and Toys 'R' Us stores remove them from the shelf.
The correct answer is: A toy manufacturer recalls a playpen with a defective latch and Toys 'R' Us stores remove them from the shelf.
Sales promotion: Select one: a. spending has grown rapidly in mature markets. b. usually lasts for only a limited time period. c. All of these alternatives are correct. d. involves a wide variety of activities which often require the use of specialists. e. can make the personal selling job easier.
The correct answer is: All of these alternatives are correct.
Sales-oriented objectives stated in market share terms: Select one: a. make some sense when a market is growing rapidly. b. use market share targets instead of dollar or unit sales targets. c. might be achieved and still result in losses for the firm. d. may lead to greater economies of scale for the firm than for its competitors. e. All of these alternatives are correct.
The correct answer is: All of these alternatives are correct.
A manufacturer might try to defend itself against charges of illegal price discrimination by claiming that: Select one: a. its products were not of "like grade and quality." b. the price differentials did not actually injure competition. c. the price differentials were justified on the basis of cost differences in production and/or distribution. d. Any of these could make price discrimination legal. e. the price discrimination occurred as a defensive measure to "meet competition in good faith."
The correct answer is: Any of these could make price discrimination legal.
In which of the following situations is the new product entering the MARKET INTRODUCTION stage of the product life cycle? Select one: a. Porsche just introduced a new luxury sport-utility vehicle to compete against sport-utility vehicles made by others. b. Apple just introduced a computer operating system that is so "user-friendly" it responds to hand motions c. Colgate-Palmolive just introduced a "new and improved" chemical formula for its "Total" toothpaste. d. All of these situations show a new product entering the MARKET INTRODUCTION stage of the product life cycle. e. Home Depot (a home improvement chain) just introduced its own dealer brand of paint.
The correct answer is: Apple just introduced a computer operating system that is so "user-friendly" it responds to hand motions
Regarding the idea generation stage of the new-product development process, which of the following is TRUE? Select one: a. Studying customers' ideas is not very helpful, since they tend to focus on minor technical changes in existing products. b. None of these alternatives is true. c. It is best to focus on only a few good ideas at this stage. d. Most companies don't need a special procedure for seeking new product ideas because so many ideas are coming from so many different sources. e. Business firms often get new product ideas from competitors.
The correct answer is: Business firms often get new product ideas from competitors.
Trion, Inc. recently spent $1,000,000 on newspaper advertising and obtained a 30 percent increase in sales. Which of the following is TRUE regarding Trion's advertising effectiveness? Select one: a. Trying to measure the effectiveness of Trion's advertising is not possible unless the ads were pretested. b. It's hard to evaluate the ad's effectiveness because the sales increase was the result of Trion's whole marketing mix-not just its advertising. c. Trion's advertising effectiveness should be evaluated by how many potential customers were exposed to the ads. d. It is not possible to measure the effectiveness of Trion's advertising. e. Trion's ads produced a very effective increase in sales.
The correct answer is: It's hard to evaluate the ad's effectiveness because the sales increase was the result of Trion's whole marketing mix-not just its advertising.
If a supermarket runs an ad for a gallon of milk in the local newspaper at a price that many consumers will recognize as a low price for this product, this is an example of: Select one: a. Reference pricing b. Bundle pricing c. Price lining d. Bait pricing e. Leader pricing
The correct answer is: Leader pricing
A disadvantage of direct-to-customer channels is that they Select one: a. are not suitable when the number of transactions is small or when orders are large. b. require the producer to coordinate with many retailers. c. are illegal in business and organizational markets. d. make it more difficult to serve buyers who want to lease rather than buy products. e. None of these is a disadvantage of direct-to-customer channels.
The correct answer is: None of these is a disadvantage of direct-to-customer channels.
Which of the following wholesalers own (take title to) the products they sell? Select one: a. Manufacturers' agents b. Combination export managers c. Brokers d. None of these wholesalers owns the products they sell. e. Selling agents
The correct answer is: None of these wholesalers owns the products they sell.
A music lover emailed a friend and proclaimed "You must see this video!" The email included a link to a YouTube performance by a relatively unknown British singer. What type of communication is this? Select one: a. Reminder b. Pass-along c. Persuading d. Must buy e. Pioneering
The correct answer is: Pass-along
Which section of a formal marketing plan for a new product is most directly related to deciding the markup chain in the channel of distribution for a new product? Select one: a. Place b. Customer analysis c. Implementation and control d. Packaging e. Price
The correct answer is: Price
Which of the 4Ps in the marketing mix is most directly related to the instructions that come with a new high-definition television set? Select one: a. Promotion b. Price c. Product d. Place
The correct answer is: Product
Gillette spent $100 million in its first year of advertising for a new type of razor and blades. All of its advertising was directed at final consumers in the hope that these consumers would go to retailers and ask for the product by name. This is an example of: Select one: a. Encoding b. Decoding c. Pushing d. Pulling e. AIDA
The correct answer is: Pulling
Southwest Airlines' "Ding" widget pops up on your computer desktop to let you know of lower fares to cities you want to visit. This is an example of a(n) _________ promotion objective. Select one: a. Persuading b. Reminding c. Informing d. Pioneering
The correct answer is: Reminding
BMW places a TV ad for its new 7-series sedan in the highly-rated Academy Awards program. In the traditional communication model, BMW is the: Select one: a. Message channel b. Decoder c. Source d. Receiver
The correct answer is: Source
At Travelocity's website, visitors are likely to find several airlines that have the identical same-day price for a flight from Atlanta to San Francisco. What pricing objective are these airlines pursuing? Select one: a. Quantity discount b. Bundling c. Status quo d. Introductory price deal e. Price flexibility
The correct answer is: Status quo
Which of the following is NOT a "Something of Value" which might be offered to FINAL CONSUMERS in the "price equation"? Select one: a. Credit b. Repair facilities c. Service d. Stocking allowance e. Packaging
The correct answer is: Stocking allowance
Which of the following is NOT primarily an example of the influence of technology on the external market environment? Select one: a. Robots on a production line make it possible to lower cost. b. A camera producer finds a way to enable a camera to store digital pictures - without film. c. Machines are developed to assemble defect-free electronic components. d. A manufacturer of frozen food is finding that consumers prefer containers that can go from the freezer direct to a microwave oven. e. The government passes a law that prohibits use of cell phones while driving a vehicle.
The correct answer is: The government passes a law that prohibits use of cell phones while driving a vehicle.
Which of the following statements about advertising objectives is FALSE? Select one: a. They should be more specific than personal selling objectives. b. They should flow from the overall marketing strategy. c. They should be left to creative ad agencies, not the marketing manager. d. They should set the framework for an advertising campaign. e. They should be as specific as possible.
The correct answer is: They should be left to creative ad agencies, not the marketing manager.
Which of the following transportation modes is "best" at handling a variety of goods? Select one: a. Water b. Air c. Truck d. Pipeline e. Rail
The correct answer is: Water
If a consumer product is used regularly and usually bought frequently and routinely with little thought (although branding may be important), this product is: Select one: a. a casual product. b. a routine product. c. a staple product. d. a homogeneous shopping product. e. a specialty product.
The correct answer is: a staple product.
All of the following should be determined by the marketing department of a firm EXCEPT: Select one: a. designing the packaging for the product. b. advertising the product. c. actually making the product. d. setting the price of the product. e. storing the product.
The correct answer is: actually making the product.
If members of the target market for an Apple iPad do not initially recognize the brand name, but compelling advertising results in more members remembering the brand, we say the Apple iPad has achieved: Select one: a. brand recognition. b. brand insistence. c. brand nonrecognition. d. brand rejection. e. brand preference.
The correct answer is: brand recognition.
A flexible-price policy is MOST LIKELY to be set by a retailer selling: Select one: a. women's shoes. b. golf balls. c. cars. d. milk. e. t-shirts.
The correct answer is: cars.
Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-market. To obtain some economies of scale, QCI decided NOT to offer each of the submarkets a different marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is counting on promotion and minor product differences to make its one basic marketing mix appeal to both submarkets. QCI is using the Select one: a. single target market approach. b. mass marketing approach. c. None of these is a good choice for Quality Ceramic. d. combined target market approach. e. multiple target market approach.
The correct answer is: combined target market approach.
Break-even analysis can be useful for: Select one: a. comparing pricing alternatives. b. setting the most profitable price. c. All of these alternatives are correct. d. relating assumed prices to demand estimates. e. estimating future sales.
The correct answer is: comparing pricing alternatives.
The first thing a marketing manager should do if one of his firm's products drops in sales volume is: Select one: a. conduct a survey to see what is wrong. b. do a situation analysis. c. set research priorities. d. define the problem. e. interview representative customers.
The correct answer is: define the problem.
Good Health Co. has set a suggested retail list price of $40 on its new vitamin tablets on the assumption that its target market will find the product attractive at this price. From this suggested retail list price, Good Health has subtracted its usual chain of markups for wholesalers and retailers to obtain its own selling price of $17. This is: Select one: a. full-line pricing. b. average-cost pricing. c. odd-even pricing. d. prestige pricing. e. demand-backward pricing.
The correct answer is: demand-backward pricing.
Good marketing managers know that: Select one: a. All of these alternatives are true. b. different audiences may interpret a message differently. c. noise in the communication process improves promotion effectiveness. d. a major advantage of personal selling is that noise can be eliminated. e. the trustworthiness of the source does not affect how receivers evaluate a message.
The correct answer is: different audiences may interpret a message differently.
Offering a CUMULATIVE quantity discount seeks to: Select one: a. encourage the buyer to make additional purchases. b. reduce the seller's shipping costs. c. shift some of the storing function to the buyer. d. All of these alternatives are correct. e. eliminate some marketing function.
The correct answer is: encourage the buyer to make additional purchases.
The AIDA model consists of four promotion jobs: Select one: a. becoming Aware, holding Interest, arousing Desire, and obtaining Action b. getting Attention, holding Interest, creating Demand, and obtaining Action c. getting Attention, building Intrigue, arousing Desire, and obtaining Action d. becoming Aware, holding Interest, arousing Desire, and providing Assistance e. getting Attention, holding Interest, arousing Desire, and obtaining Action
The correct answer is: getting Attention, holding Interest, arousing Desire, and obtaining Action
A S.W.O.T. analysis Select one: a. helps defend against potential competitors by developing a set of competitive "safeguards, weapons, offensives, and tactics." b. focuses on what a firm plans to do to "satisfy wishes of a target" customer. c. identifies a firm's "strengths, weaknesses, opportunities, and threats. d. summarizes a firm's "strategy, wishes (of its customers), outlook, and tactics." e. seeks to reduce the risk of competitive surprises by scanning the market for "signals, warnings, omens, and tips."
The correct answer is: identifies a firm's "strengths, weaknesses, opportunities, and threats.
"Discretionary income:" Select one: a. is the amount of income spent on durable goods. b. is a measure of a family's total purchasing power. c. is a family's income AFTER taxes. d. is a family's income AFTER paying taxes and paying for necessities.
The correct answer is: is a family's income AFTER paying taxes and paying for necessities.
Debbie Wood sells food products to grocery wholesalers and large supermarket chains in Tallahassee. She sells for several manufacturers with noncompeting lines of food products-earning a 5 percent sales commission. She neither handles nor owns the products she sells. Debbie is a: Select one: a. broker. b. manufacturers' agent. c. truck wholesaler. d. rack jobber. e. selling agent.
The correct answer is: manufacturers' agent.
Regarding the challenges facing marketers, the text suggests that: Select one: a. continued growth of GDP is one favorable change in our macro-marketing system that a marketing manager can count on. b. All of these alternatives are correct. c. there is likely to be much less regulation of marketing in the future, especially in regard to consumer privacy. d. government planners should play a major role in deciding what product choices consumers should have. e. marketers should look for ways to improve a strategy even before there's reason to believe that something needs to be fixed.
The correct answer is: marketers should look for ways to improve a strategy even before there's reason to believe that something needs to be fixed.
Better performance of our market-directed MACRO-marketing system may require: Select one: a. newer and tougher laws-because the present laws don't do enough to protect competing firms from each other. b. less emphasis on consumer privacy. c. less business responsibility because consumers already determine whether a firm will succeed or fail. d. more consumer responsibility. e. None of these alternatives is correct.
The correct answer is: more consumer responsibility.
When developing a marketing plan for a new product that is about to enter the market introduction stage of its product life cycle, a marketing manager should: Select one: a. change the marketing strategy only when the market environment changes. b. plan to sell the product until its whole life cycle is over. c. plan to change the marketing strategy as the product moves through its life cycle. d. plan to change the marketing strategy every six months. e. choose the best possible marketing strategy and stay with it throughout its product life cycle.
The correct answer is: plan to change the marketing strategy as the product moves through its life cycle.
A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses. Select one: a. general merchandise b. public c. private d. commodity
The correct answer is: private
To improve its profits, Delta Tool Corp. has redesigned its entire line of rechargeable power drills-adding several new or improved features and three new models. Apparently, Delta Tool is pursuing a ______________ opportunity. Select one: a. product development b. combiner c. market penetration d. diversification e. market development
The correct answer is: product development
To encourage potential buyers to purchase a ticket to its upcoming concert, a rock band posts a YouTube video of an earlier performance on the website of its next performance. This is an example of: Select one: a. advertising. b. publicity. c. single-customer marketing. d. personal selling. e. sales promotion.
The correct answer is: publicity.
When major airlines target business travelers because they travel often and typically pay at least three times the price for a ticket as leisure travelers, these airlines are segmenting the market primarily on: Select one: a. education. b. rate of use. c. ethnicity. d. age. e. income.
The correct answer is: rate of use.
A main purpose of "unfair trade practice acts" is to: Select one: a. require some minimum percentage markup on cost. b. eliminate price competition on manufacturers' brands. c. guarantee retailers some profit. d. prevent manufacturers from taking high markups. e. permit different types of retail outlets to charge different retail prices.
The correct answer is: require some minimum percentage markup on cost.
Point-of-purchase materials, coupons, trade shows, calendars, merchandising aids, and sales training materials are all examples of: Select one: a. advertising. b. publicity. c. personal selling. d. sales promotion. e. mass selling.
The correct answer is: sales promotion.
The basic objective of the U.S. market-directed economic system is to: Select one: a. reduce the cost of marketing activities. b. satisfy consumer needs as the consumers themselves see them. c. ensure the survival of business firms. d. satisfy consumer needs as seen by marketing managers. e. find a reasonable balance between consumer satisfaction and business profits.
The correct answer is: satisfy consumer needs as the consumers themselves see them.
Data which have already been collected in a previous study are called __________ data, while data that are generated by a phone survey this month of key customers are called _______ data. Select one: a. primary; secondary b. secondary; experimental c. primary; intranet d. secondary; primary e. intranet; sample
The correct answer is: secondary; primary
Carmela Sanchez is planning to buy a pair of running shoes. Recently, she has been noticing more Adidas advertising in magazines. This is an example of: Select one: a. selective exposure. b. need satisfaction. c. a physiological need. d. dissonance. e. a consumer expectation.
The correct answer is: selective exposure.
"Promotion" is MAINLY concerned with: Select one: a. obtaining maximum publicity-at the lowest cost. b. telling the target market that the right Product is available in the right Place at the right Price. c. obtaining a favorable corporate image. d. informing the public about the firm's offerings to maximize sales. e. getting people to buy a firm's product-even when it isn't needed.
The correct answer is: telling the target market that the right Product is available in the right Place at the right Price.
A retailer might expect a stocking allowance: Select one: a. to offset the handling costs for a new product. b. to pass along to retail salesclerks who aggressively sell the product. c. if the manufacturer can't fill an order by the promised delivery date. d. None of these-stocking allowances only apply to wholesalers. e. for paying the supplier's invoice before the product is delivered.
The correct answer is: to offset the handling costs for a new product.
A "skimming pricing policy": Select one: a. usually involves a slow reduction in price over time. b. means temporary price cuts to speed new products into a market. c. is most useful when demand is very elastic. d. should be used if a firm expects strong competition very soon. e. is typically used during the sales decline stage of the product life cycle.
The correct answer is: usually involves a slow reduction in price over time.
Average-cost pricing Select one: a. ignores variable costs. b. always results in a profit that is less than what was expected. c. will work out as expected when the firm's actual average fixed cost per unit is what was estimated when prices were set. d. is the only way to ensure that the firm will set a profitable price. e. sets the price at the point where average fixed cost is equal to average variable cost.
The correct answer is: will work out as expected when the firm's actual average fixed cost per unit is what was estimated when prices were set.
Non-recognition of the brand name of a firm's product is likely to be LEAST important for: A. Coal B. USB drives C. Lubricating oils for cars D. Cold tablets E. Replacement auto repair parts
• Correct answer: A
1. Target's "Cherokee" brand of men's clothing is available only at Target stores. The brand provides a low-cost alternative to other men's fashions available at department stores and via catalogs. The Cherokee brand is a(n): A. manufacturer brand. B. dealer brand. C. licensed brand. D. national brand. E. generic brand.
• Correct answer: B
Dealer brands, compared to manufacturer brands, usually offer wholesalers and retailers: A. less risk. B. higher gross margins. C. faster turnover at reduced selling costs. D. products which are presold to target customers. E. more prestige.
• Correct answer: B
In which of the following situations is the new product entering the MARKET INTRODUCTION stage of the product life cycle? A. Porsche just introduced a new luxury sport-ute to compete against sport-utes made by others. B. Colgate-Palmolive just introduced a "new and improved" chemical formula for its "Total" toothpaste. C. Home Depot (a home improvement chain) just introduced its own dealer brand of paint. D. Google just introduced driverless cars.
• Correct answer: D
If members of the target market for an Apple iPad do not initially recognize the brand name, but compelling advertising results in more members remembering the brand, we say the Apple iPad has achieved: A. brand rejection. B. brand preference. C. brand non-recognition. D. brand insistence. E. brand recognition.
• Correct answer: E