Business Chapter 11, 12, 13
Which of the following is a difference between pure goods and pure services?
Pure goods are products that do not include any services, while pure services are products that do not include any goods.
Which of the following strategies can a company use to decrease its breakeven point?
Reducing variable costs
Which of the following statements is true of loss-leader pricing?
Retailers price a handful of items below cost but aim to make up the difference on other purchases.
Which of the following is a difference between retailers and wholesalers?
Retailers sell products directly to final consumers, whereas wholesalers buy products from a producer and sell them to businesses.
Which of the following is a difference between sales promotion and personal selling?
Sales promotion refers to the marketing activities designed to stimulate immediate sales activity through specific short-term programs, while personal selling is the person-to-person presentation of products to potential buyers.
Which of the following is a difference between a channel of distribution and physical distribution?
A channel of distribution is the path that a product takes from the producer to the consumer, whereas physical distribution is the actual movement of products along that path.
Which of the following is an example of a pure good?
A lockable diary
Which of the following is an example of a pure service?
A waiter at a restaurant
Which of the following products is an augmented product?
A wireless charger that comes with the latest range of smartphones
Which of the following is a similarity between retailers and wholesalers?
Both are members of the channel of distribution of products.
Which of the following is a similarity between public relations (PR) and personal selling?
Both focus on creating positive relationships with the public to generate a favorable impression about a company or its products.
Which of the following is a similarity between consumer marketers (B2C) and business marketers (B2B)?
Both use geographic segmentation of markets.
In the context of the evolution of marketing, which of the following is a similarity between the selling era and the marketing era?
Both witnessed a drastic increase in supply.
Which of the following modes of transportation provides the highest flexibility in handling?
Ships
Which of the following statements is true of business buyers?
They buy according to purchase specifications and objective standards.
Which of the following statements is true of agents and brokers?
They connect buyers and sellers.
Which of the following is a reason why producers use channel intermediaries?
They help products move more efficiently and effectively from the factories to the consumers.
Which of the following statements is true of merchant wholesalers?
They take legal possession, or title, of the goods they distribute.
Which of the following statements is true of drop shippers?
They take legal title of the merchandise, but they never physically process it.
Which of the following statements is true of anti-price gouging laws?
They tend to encourage hoarding.
Exilant Shooters, a wedding photography company, is providing free candid photoshoots for the first fifty people who visit its Web site. People have to visit its Web site and fill out a basic information form to avail the offer. Which product characteristic is being used by Exilant Shooters to affect the rate of adoption and diffusion?
Trialability
Which of the following businesses is most likely to form limited relationships with its clients?
Vernew, a company that manufactures luxury perfumes
In the context of product features, if a product is well designed, each feature corresponds to a meaningful
customer benefit
Alpha Inc., a manufacturer of smartphones, is currently the market leader. The company designs phones that offer several features and a long battery life. Most of Alpha's customers are extremely happy with the phones and believe that the phones come with more benefits and features than what they generally expect from smartphones. This indicates that Alpha has achieved
customer satisfaction
Customer relationship management emphasizes:
delivering unmatched value to product users.
In the context of developing a marketing strategy, once you've identified your target market, your next step is to:
determine how you can best use marketing tools to reach your target market.
Relane, a fitness equipment manufacturer, advertises its products and the availability of those products through television. The customers interested in placing their orders could use a toll-free number displayed during the advertisement. Relane is selling its products straightaway to customers through a
direct channel
Gamma Corp. regularly assesses its marketing strategy. In order to devise good strategies, the company gathers information about factors such as competitors, economic conditions, technological developments, and customer choices. This activity of collecting external information illustrates
environmental scanning
Dividing the market into smaller groups based on where consumers live is known as
geographic segmentation
Anne's friend is a designer who specializes in creating exclusive pieces of hand-made bags. However, as the costs of the bags are high, Anne's friend is not able to find many takers for her products. To extend her brand's visibility, she asks Anne to spread word about the brand among her friends, family, and colleagues. In the scenario, the promotional tool employed by Anne's friend is
guerrilla marketing
OnTheGo, a newly launched online fashion company, engages in an intensive advertising campaign after its launch. The company makes use of all possible media platforms to create a seamless promotional strategy to reach its target audience and to establish a strong brand image. This step taken by OnTheGo exemplifies
integrated marketing communication
According to economists, anti-price gouging laws:
may exacerbate the supply problems that cause inconvenience after natural disasters.
In the context of the evolution of marketing, during the production era,
most products were purchased as soon as they were produced and distributed to consumers
The right mode of transportation depends on the:
needs of the business and on the product itself.
In the context of modes of transportation, a key advantage of choosing trucks is that they:
offer high frequency of shipments
In the context of the role of customers in marketing, loyal customers are most likely to:
refer their friends and sometimes even strangers.
In the context of personal selling, consultative selling involves:
shifting the focus from the products to the customers.
Kanlane is a retail store that exclusively sells personal care products, which include shower gels, lotions, fragrance mists, and others. Kanlane is a(n)
specialty store
In the context of consumer product categories, _____ are the goods and services that hold little interest for consumers.
unsought products
PowerLife Inc. is a food company that has several product lines, including dairy products and powdered fruit-flavored drink mixes. The company recently introduced ready-to-drink packaged fruit juices. The company is now experiencing a fall in the sales of its powdered drink mix as an increasing number of consumers are preferring to buy the packaged juice instead. Which of the following is illustrated in this scenario?
Cannibalization
Which of the following is a risk associated with licensing?
Consumer backlash hits the core brand if licensed products are of poor quality or overpriced.
Which of the following is a difference between consumer products and business products?
Consumer products are products that are purchased for personal consumption, whereas business products are products that are used either directly or indirectly to produce other products.
The marketing department of Jeremint, a fine dining restaurant, sends flowers to all the customers who write constructive feedback in the feedback forms provided at every table. Most of its customers regularly and repeatedly dine there. Which of the following marketing concepts is best explained in this scenario?
Customer loyalty
Auburn, a brand of women's fashion apparel, targets its haute couture collection at fashion-conscious ladies with high disposable incomes. Which of the following types of market segmentation is Auburn using?
Demographic segmentation
Which of the following businesses is most likely to forge full partnerships with its clients?
Derrik, a company that manufactures luxury cars
Which of the following is a challenge that a marketer faces when designing a product?
Designing a package of features that offers the highest level of value for an acceptable price
Keithet Corp. is a manufacturing unit that produces construction materials out of plastic waste. Its product line ranges from plastic blocks, which can substitute bricks, to plastic nails for carpentry. Keithet Corp. illustrates
Form Utility
Which of the following qualifies as consumer promotion?
Free product samples
Venus is an apparel manufacturing company that recycles waste to make clothes. Only nontoxic dyes are used in the manufacturing process. The company has gained a lot of popularity for its ideas. Which of the following concepts is illustrated in this scenario?
Green marketing
AidForHealth, a nonprofit organization that organizes blood donation camps in several cities, has an advertising campaign that invites youngsters to donate blood. Which of the following marketing strategies is illustrated by this campaign?
Idea Marketing
Which of the following statements is true of cobranding?
If one partner makes a major goof, the fallout can damage the reputation of the other partner as well.
In the context of fixed margin pricing, which of the following statements is true of the profit margin?
It can be expressed as a dollar amount.
In the context of retail stores, which of the following statements is true of a category killer?
It dominates its category by offering a huge variety of one type of product.
Which of the following statements is true of a breakeven analysis?
It helps marketers get a sense of where they stand before actually introducing a product.
Which of the following best describes a positioning statement?
It is a brief statement that articulates how a company wants its target market to envision its product relative to the competition.
Which of the following statements is true of cost-based pricing?
It is less market-focused than demand-based pricing.
Which of the following statements is true of a well-chosen target market?
It is reachable through channels that a business can afford.
Which of the following statements best describes profitability?
It is the positive difference between revenue and costs.
Which of the following statements is true of penetration pricing?
It makes sense only in categories that don't have a significant group of consumers who would be willing to pay a premium.
Which of the following statements is true of the marketing concept?
It materialized in the 1950s.
In the context of retail stores, which of the following statements is true of a discount store?
It offers a wide array of merchandise at significantly low prices and with less service.
In the context of retail stores, which of the following statements is true of a department store?
It offers a wide variety of merchandise, plus a high level of service.
Which of the following statements is true of product packaging?
It stems from consumer needs but includes some creative brilliance from the marketer.
Which of the following approaches can limit a company's chances of being able to launch its product successfully?
Launching the product in a crowded market with more competition
In the context of technology in marketing, which of the following is an advantage of using sophisticated data collection and management systems?
Marketers can identify high-potential new customers.
Julia is a successful athlete who has built a favorable public image for herself. To boost her image, she attends several promotional events that are covered by the media. Which of the following marketing strategies is illustrated in this scenario?
People Marketing
Which of the following scenarios illustrates the use of primary data in marketing research?
Peter, a door-to-door salesman at Kurtosis Inc., asks people about their product preferences and uses this information to improve sales.
Which of the following is a difference between primary data and secondary data?
Primary data is proprietary, whereas secondary data is available to competitors and the public.
Which of the following is facilitated by great packaging?
Providing information on the nutritional value of a product