MKTG 321: TEST 2: ASSIGNMENT Q'S

Services make up about ________________ of the gross domestic product in most developed countries.

70%

Which of the following is the best example of a rack jobber?

A vendor maintains a rack of DVDs it sells at a popular drugstore.

Jordynn decides to open an Olive Garden franchise. She pays the franchise fees and opens the restaurant. Because Olive Garden is already a well-known name, Jordynn knows her chances of success are higher than if she opened her own restaurant from scratch. Jordynn hires experienced servers with great customer service skills. Jordynn would love to adopt an ancient Roman décor for her restaurant. However, she is told that her restaurant must have more of a Tuscany theme so that it remains consistent with other Olive Garden restaurants. Her restaurant becomes a major success. Jordynn's servers are especially adept at convincing patrons to purchase Olive Garden's bottles of wine. The Tuscany theme Jordynn adopts, including photos of Italian scenes and Italian-style architecture, is part of Olive Garden's ________________.

Atmospherics

Oculus, acquired by Facebook in 2014, is involved in virtual reality. Its Oculus Rift product is a virtual reality headset released to the public in 2016. Retailers including Best Buy sell the Oculus Rift for approximately $600. Already there are some competitors emerging to challenge Oculus Rift, including the HTC Vive, Microsoft's HoloLens, and Sony's PlayStation VR In terms of brand loyalty, at this stage of the product life most consumers will probably have______________ for the Oculus Rift.

Brand Recognition

Lyle founded a salsa manufacturing plant in his hometown of El Paso, Texas. Sales have been good, and demand for his products have been high. Lyle believes there are many more potential customers for his product in different regions of the country. He would like to sell to discount stores, restaurants, supermarkets, and more. Lyle does not have much experience in the sales area, however, and he cannot afford to hire a full-time salesperson yet. Lyle turns to Tim, an independent salesperson who works for several different clients in the food industry. Tim is a specialist in his field and has a number of connections in the food industry. Lyle is sure Tim will be successful in finding companies or restaurants who will want to purchase his salsa. Tim is most likely a(n) _____________.

Broker

Which of the following would be an example accessory equipment?

Calculator

Delilah owns a pottery store in a small town. In recent years she has been able to expand her pottery store significantly. Demands for her pottery have grown from outside of the area, and many fans follow the photos of new designs and art pieces posted on Delilah's Facebook page. Delilah does not want to open a new location in a more urban area, but she would like her fans from outside the region to be able to order pottery easily. Additionally, some of her firm's most loyal supporters live in towns even more rural than Delilah's. Delilah is looking for a marketing distribution method that would not be too high in cost and would not require a whole lot of time. She already sells through her website, but she wants open up another channel of distribution. Based on her criteria, Delilah should probably use ____________.

Catalog Marketing

Joseph has a passion for quality electronics. His dream is to open up a large electronics store to compete against Best Buy. He thinks he can utilize supplier relationships to source the latest high-tech electronics at lower prices. Therefore, he thinks he can beat Best Buy on the type of products available as well as with lower price points. Joseph is most likely to open up a ________________.

Category Killer

Supermarkets use ________________ to allocate space for their many product categories, such as cosmetics, cereals, and soups.

Category Management

Most wine comes in similarly shaped bottles. However, Stack Wine offers its wine in four-pack cups. While a traditional winemaker is likely to adopt _____________ packaging, Stack Wine has adopted ____________ packaging.

Category-consistent; Innovative

Nicole has located her very first store in a smaller shopping area where she sometimes partners with the other businesses to hold events or exhibits. Nicole chose this location because she wanted to attract customers looking for shopping or specialty products. She feels that many of the retailers in the shopping center offer products that cannot be found in the typical strip mall. Nicole has located her shop in a ______________.

Community Shopping Center

Refer to Scenario 11.1. Tide Pods would most likely be classified as a ______________ product. However, suppose a hotel uses Tide Pods to wash their sheets and towels. In this case, Tide Pods would be classified as______________.

Convenience; MRO supplies

Chris owns his own small firm. The firm has expanded significantly and is thinking about taking out some ads on television. Chris had decided it is time to get a lawyer to advise them on business issues and ensure that their activities obey all relevant laws. Chris meets with a lawyer on a recommendation from a friend. The lawyer seems to have great credentials, and the advice he gave Chris seemed solid. But the lawyer's advice comes at a high expense. Chris wants to make sure he gets the best service possible for the price he is paying. However, he does not have much experience with the law and does not know how to measure the lawyer's services on quality. It is particularly hard for Chris because the advice he gets from the lawyer is something he cannot see, making it much harder to measure according to quality characteristics. He looks online at the reviews of other consumers who used the lawyer's services. Refer to Scenario 13.2. What type of evaluation method is Chris using to evaluate the lawyer's services?

Credence qualities

Shopping online is highly convenient and easy. However, there are some things that retail stores have that online shopping does not. For instance, online marketers are likely to have less ________________ than retail stores. Many websites encourage consumers to chat instantly online if they have a problem, and a customer service representative will answer them. This helps save money on calls.

Customer Contact

Herbalife24 includes products developed for athletes in Canada. Herbalife is a weight management and nutrition products company known for marketing products to customers for a healthier lifestyle. Athletes are just one of the groups that Herbalife targets. Herbalife24 is most likely a ______________.

Product Line

Around Christmas time, airline tickets tend to increase. What type of pricing are the airlines most likely using to determine how much they will charge customers at this time?

Demand-based Pricing

Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Based upon the information about Nicole's store, what type of store do you think it is?

Department Store

Belle Meade sells different kinds of wine. Under its white wine product line, it sells three products—Carriage House White, Celebration Riesling, and Chardonnay. This is an example of _____________.

Depth of product mix

In terms of selling products, _______________ is the most personal and customizable form of selling, whereas _______________ is one of the least personal

Direct selling; automatic vending

National Geographic sent Ray his monthly magazine. They also sent him a form letting him know that his subscription was running out. If he acts now, he can save $5 on his purchase. All Ray has to do to renew his subscription for the upcoming year is fill out a form and mail it with a check to National Geographic. This is an example of ______________.

Direct-Response Marketing

Experiential or symbolic benefits are most important to which of the following?

Disney World

Belle Meade is an old house and plantation in Nashville, Tennessee. Today it operates as a non-profit, giving tours of the house and plantation to the public. Its mission is to educate the public about the significance of the plantation in American history. In the past, it depended on ticket sales from these tours to maintain the upkeep of the plantation. However, once the recession hit, sales of tickets declined. The managers decided to open a non-profit winery to supplement ticket sales. Belle Meade grows grapes on the property, and volunteers package the wine. At the end of the tour guests can engage in wine tasting and purchase wines at the plantation's store. The winery has been highly successful, and any profits from selling the wine are reinvested back into the plantation. It also operates a restaurant on the premises. Refer to Scenario 13.3. At Belle Meade Plantation, the core product is ________________.

Education

Refer to Scenario 11.1. Melinda hates using liquid laundry detergent. She heard about Tide Pods from a friend and did some research. She likes what she learns, but she is concerned about all the incidents where children have accidentally swallowed the pods. She has two young children herself. Melinda begins weighing the pros and cons of Tide Pods versus the liquid laundry detergent. Melinda is in what stage of the product adoption process?

Evaluation

Customers are likely to use ____________________ to evaluate Belle Meade's core product.

Experience qualities

When evaluating the quality of Shelly's service, what type of evaluation method did the customer most likely use?

Experience qualities

Customer services also refer to services as products. True or False.

False

Firms can use the "Made in USA" label on their products as long as over 50 percent of the product is actually produced in the USA. True or False

False

In order to qualify as retailing, the transaction between buyer and seller must occur either through the Internet or a physical location. True or False

False

Joseph Campbell owns his own pet store. He has named his store Campbell's Pet Store. It has become popular, and Joseph wants to trademark the name. He is likely to receive trademark protection if he is the first to register the name. True or False

False

Laggards are those consumers who never adopt the product. True or False

False

Retailers play a major role in creating time, place, and possession utility but not form utility. True or False

False

The Food and Drug Administration have strict criteria over what products can be labeled as "natural." True or False

False

The terms target public and client public can be used interchangeably. True or False.

False

Smart Ones TV dinners come in red boxes with many of the same elements. Each box features the giant "Smart Ones" brand name at the top. This is an example of ______________.

Family packaging

Which of the following is a benefit of franchising for the franchisor?

Fast and selective product distribution

Ten years have passed since Nicole opened her first store. She has since opened two more stores, and demand remains high. Her store has been listed as one of the top stores for customer service. Nicole would like to engage in wide-scale expansion in the United States. She is looking at an option that would allow her store to gain fast and selective product distribution without incurring the high cost of constructing her own stores. However, a disadvantage to this option would be the possibility of losing some control over the new stores. Nicole is most likely considering ________________.

Franchising

The supplier in the franchise relationship is known as a

Franchisor

In nonprofit marketing,_________________ are indirect consumers of the product. They do not directly benefit from the product the nonprofit organization is offering.

General Publics

In which stage do sales first start to decline?

Growth

Compared to goods marketers, service marketers are more likely to promote which of the following?

Guarantees

Shelly works as a call-center employee from inside her home. The company she works for does not mind that she works from home because she is so good at her job. Her professionalism hardly varies from one call to the next. One day, however, she learned that her mother had died. Rather than taking off work, she went through the work day as routine. A few days later, a customer complained to the firm that she did not like Shelly's attitude when she contacted her with questions about a product. She felt that Shelly was brusque and rude. The company investigated the matter and found that Shelly had lost her patience with the customer over the phone. However, when they found out about her situation, they only gave her a verbal warning. Refer to Scenario 13.1. Which characteristic of services caused a problem for the firm in this scenario?

Heterogeneity

Shelly works as a call-center employee from inside her home. The company she works for does not mind that she works from home because she is so good at her job. Her professionalism hardly varies from one call to the next. One day, however, she learned that her mother had died. Rather than taking off work, she went through the work day as routine. A few days later, a customer complained to the firm that she did not like Shelly's attitude when she contacted her with questions about a product. She felt that Shelly was brusque and rude. The company investigated the matter and found that Shelly had lost her patience with the customer over the phone. However, when they found out about her situation, they only gave her a verbal warning. Refer to Scenario 13.1. The fact that Shelly's job has been outsourced to her home is known as ______________________.

Homesourcing

Ronald McDonald Houses provides places for family members to stay so they can be close to their hospitalized children. Ronald McDonald Houses solicit both donations and volunteers. It is a good charity for volunteers who are passionate about the well-being of children. In this case, who is the client public for Ronald McDonald Houses?

Hospitalized children and their families

Which of the following organizations is closer to pure services on the tangibility continuum?

Hyatt

The United Kingdom's largest supermarket is called Tesco. Tesco is a grocery and general merchandise retailer. In some outer city regions, Tesco has opened up stores it calls Tesco Extra, which carries all of Tesco's product ranges. These stores are known for their massive size—the largest one is 185,500 square feet. Tesco Extra is most likely to be a _________________.

Hypermarket

Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy than liquid detergent (they can just be thrown into the washer) and more concentrated. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 11.1. When first released, Tide Pods caught consumers' attention because the detergent was placed into a small orange "pod" that users could throw into their washing machine. This eliminated the need to measure and pour out messier liquid detergent. Tide Pods likely represent what type of packaging?

Innovative

Felicity loves to try new products because she gets a thrill from it. Even though some of the products she adopted turned out to be failures, Felicity is willing to take the risk. She needs to be the first one to own the newest products! Her best friend Melanie, however, is generally suspicious about new products. For instance, when the iPad first came out, Melanie was highly skeptical. Even when Felicity assured her that it was a good product, Melanie was not certain. Finally, after a few years and lots of encouragement from Felicity, Melanie decided to purchase the newest iPad. Felicity is most likely in the ___________________ category, while Melanie is most likely in the ______________ category of product adopters.

Innovator; late majority

Eric was incredibly excited to see the premiere of a new movie that was coming out. However, when he went to see the movie, he was disappointed because there were some loud people in the audience that kept distracting him. He had high hopes for the movie but felt the loud people ruined it for him. He notices this happens a lot at this movie theater. Unfortunately, Eric lives in a small town in a highly rural area, and it is the only theater there. Eric knew that he could have waited to rent the movie when it came out, but then he would not experience the full movie effect. He feels it's a shame he has to go to a loud movie theater to see the movies he wants. However, he does not see any other option other than driving to the next city with a movie theater several miles away. Refer to Scenario 13.4. Eric's major problem is that the movie theater is incredibly loud, but it is his only viable option if he wants to get the full movie theater experience. Which of the following service characteristics is causing this problem for Eric?

Inseparability

Fidelity Investments is the second largest mutual fund and financial services group worldwide. It has various offices in cities across the United States. In each office customer contact personnel have a well-groomed, professional appearance. The inside of the office is clean and attractive. These visible cues are an attempt to deal with the problem of ________________ common to service organizations

Intangibility

Refer to Scenario 13.2. Based on the scenario, what characteristic of services has made it difficult for Chris to analyze service quality?

Intangibility

Oculus, acquired by Facebook in 2014, is involved in virtual reality. Its Oculus Rift product is a virtual reality headset released to the public in 2016. Retailers including Best Buy sell the Oculus Rift for approximately $600. Already there are some competitors emerging to challenge Oculus Rift, including the HTC Vive, Microsoft's HoloLens, and Sony's PlayStation VR. Refer to Scenario 11.3. In which stage of the product life cycle is the Oculus Rift?

Introduction

Which of the following distribution concerns would a service marketer be most concerned with?

Inventory Management

__________________ are designed to resemble traditional "Main Street" shopping centers and often have a central theme evidenced by the architecture.

Lifestyle shopping centers

Jordynn decides to open an Olive Garden franchise. She pays the franchise fees and opens the restaurant. Because Olive Garden is already a well-known name, Jordynn knows her chances of success are higher than if she opened her own restaurant from scratch. Jordynn hires experienced servers with great customer service skills. Jordynn would love to adopt an ancient Roman décor for her restaurant. However, she is told that her restaurant must have more of a Tuscany theme so that it remains consistent with other Olive Garden restaurants. Her restaurant becomes a major success. Jordynn's servers are especially adept at convincing patrons to purchase Olive Garden's bottles of wine. What is one of the disadvantages Jordynn encountered by opening a franchise instead of her own restaurant?

Loss of some control

Buckyballs was marketed as desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. The company that made Buckyballs discontinued the office toy. Refer to Scenario 11.2. What type of brand was Buckyballs?

Manufacturer Brand

Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy than liquid detergent (they can just be thrown into the washer) and more concentrated. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 11.1. Tide holds a large market share in the laundry detergent industry—over 50 percent. However, Tide has been on the market for many years. Procter & Gamble was hoping that its new pods would bring new life to its product and excite consumers once more. Tide laundry detergent is most likely in what stage of the product life cycle?

Maturity

Which of the following direct marketing methods will reach the most people, allow customers to shop from the convenience of their homes, and is one of the least expensive?

Online retailing

Belle Meade is an old house and plantation in Nashville, Tennessee. Today it operates as a non-profit, giving tours of the house and plantation to the public. Its mission is to educate the public about the significance of the plantation in American history. In the past, it depended on ticket sales from these tours to maintain the upkeep of the plantation. However, once the recession hit, sales of tickets declined. The managers decided to open a non-profit winery to supplement ticket sales. Belle Meade grows grapes on the property, and volunteers package the wine. At the end of the tour guests can engage in wine tasting and purchase wines at the plantation's store. The winery has been highly successful, and any profits from selling the wine are reinvested back into the plantation. It also operates a restaurant on the premises. Refer to Scenario 13.3. Volunteers are used to help bottle the wine at Belle Meade Plantation. These volunteers experience ______________________ because they are donating their time to bottle wine when they could be using it for something else.

Opportunity Costs

The University of New Mexico football team is having its homecoming game. However, fewer people have purchased tickets than anticipated. As the game gets closer, the university begins selling the tickets at a discount in the hopes of filling up the stadium. The university is discounting football tickets due to the _______________ of services.

Perishability

Which of the following companies are most likely to use individual branding?

Proctor and Gamble

Which of the products provided by the following companies is most likely to be evaluated using experience qualities?

Red Lobster

The reason why Delilah chose to locate her one retail location in this small town was because the town has a reputation for being an "art colony." It is located off a major highway, and a lot of travelers stop in. Others are willing to travel from miles away. When Delilah looked at the market, she realized most sellers of art in the community were charging premium pricing. This worked fine for those who traveled from far away to shop for art, but most people who were just passing through on their way to another destination did not want to make such a big investment. Recognizing this, Delilah chose to price her pottery at more reasonable prices. This is an example of __________________.

Retail Positioning

Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Based upon the description, Nicole is engaging in__________.

Retailing

When Olive Garden sells wine to its customers in the restaurant, this is known as ________________.

Retailing

Buckyballs was marketed as desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. The company that made Buckyballs discontinued the office toy. Keep Away from Children" was placed on the label of Buckyballs packaging for _____________ Problems.

Safety

Refer to Scenario 11.3. What type of consumer product is the Oculus Rift?

Shopping

Phil works at a wholesaler that specializes in organic, grass-fed beef. Resellers wanting to purchase from Phil's organization have few options to choose from because its beef products tend not to vary. Phil most likely works for a __________________.

Specialty-line wholesaler

Logan enjoys going to the local zoo. He does not like the price of the zoo food and beverages, however, as they are much more expensive than food in other places. When he does buy a drink, he usually goes for the extra-large because he gets a souvenir cup that he gets to keep. The souvenir cup represents which of the following?

Supplemental features

All tangible goods have an intangible component to them. True or False

True

Buckyballs was marketed as desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. The company that made Buckyballs discontinued the office toy. Refer to Scenario 11.2. Buckyballs was marketed as a desk toy, and many consumers placed them on their desks at work. Despite this fact, Buckyballs should be classified as a consumer product. True or False

True

Extreme value stores include Dollar General, Dollar Tree, Big Lots, and 99¢ Only Stores. True or False

True

It is often harder to judge the quality of the services provided by workers at a nonprofit than it is for employees of a for-profit firm. True or False

True

Cardinal Health, based in Dublin, Ohio, specializes in the distribution of pharmaceuticals and medical products. It recently completed a transaction where it provided a national hospital chain with a new supply of pharmaceuticals used to help control pain after surgery. Cardinal Health is engaging in ___________.

Wholesaling

Cummins has multiple product lines that it categorizes into engines, power generation, fuel systems, turbo technologies, filtration, and emissions solutions. This would be an example of which of the following?

Width of product mix

Refer to Scenario 13.4. Ideally, Eric would like to watch the movie in a totally quiet environment. However, he is realistic and knows that he is going to hear some noise from others in the audience. It does not bother him as long as they keep their voices relatively low. However, there are always a few people who talk loudly and obnoxiously. This difference between Eric's desired level of total silence and the point where he can no longer enjoy the movie because the audience is too loud is called the ___________.

Zone of Tolerance