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Chapter 01 Assignment: Customer-Driven Strategic Marketing

1. Assessment question

Scenario 1.1.

Karen works as a salesperson for Wüsthof, a company that makes cutlery and kitchen knives. She is driven to make as many sales as possible to as many people as possible in order to increase her commission. Although she has many great customer relationships, she also has a reputation for overly aggressive sales tactics. Karen has been able to convince customers to purchase more expensive knives even after they say they are not interested. As a result of Karen’s high sales, she is a top sales associate at the company.

Recently, however, Karen’s sponsor has been informed of complaints that customers have levied against Karen accusing her of “badgering” them into buying products. The sponsor meets with Karen and tells her it is unacceptable to pressure consumers into purchasing items they do not want.

Refer to Scenario 1.1. Which variable of the marketing mix does this issue involve?

Promotion

Marketing environment

Price

Distribution

Product

2. Assessment question

Scenario 1.2.

An indie nail polish brand, Holo Taco, conducts in-depth marketing research to determine what customers want. Its long-wearing nail polishes are made with the highest quality holographic glitter. The company creates buzz around its product offerings by discussing the product weeks before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in its website selling out of the newest product.

Refer to Scenario 1.2. Holo Taco’s emphasis on marketing research is used to enhance what variable of the marketing mix?

Product

Distribution

Price

Promotion

Supply chain management

3. Assessment question

Scenario 1.2.

Refer to Scenario 1.2. Holo Taco’s skills at creating buzz for its newest product offering weeks before its release is an example of what marketing variable?

Supply chain management

Product

Promotion

Price

Distribution

4. Assessment question

Christopher, the CEO of a linguistics company, worked with his chief technology officer to develop an information system to discover customers’ real needs. Christopher uses the information to create satisfying products for his target market, increasing his sales revenue and profit. He strives to perfect his marketing mix to keep business booming. Christopher embraces the marketing concept. What is the major focus of the marketing concept?

Marketing mix

Target market

Profit

Sales revenue

Customer satisfaction

5. Assessment question

What deepens the buyer’s trust in the company and increases the firm’s understanding of the customer’s needs as the customer’s confidence grows?

Marketing

Marketing concept

Relationship marketing

Customer lifetime value

Market share

6. Assessment question

Scenario 1.3.

Dylan manages a highly reputable cybersecurity business. This company has been voted as having the best cybersecurity software. Consumers appreciate the fact that they can make secure transactions without worrying about privacy or identity theft. Dylan knows that the company’s product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best software, Dylan had to lay off employees at the customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cybersecurity software is still considered one of the best, customer satisfaction with the firm’s customer service has plummeted. Dylan does not understand why consumers are getting so upset. He believes the exceptional software more than makes up for long waiting periods and other issues with its customer service. “After all,” he says, “they can’t have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering.”

Refer to Scenario 1.3. Dylan has asked you, a marketing consultant, to give him advice. He cannot understand how a cybersecurity company with the best product offering in the industry could get such low satisfaction ratings simply because the customer service is not up to par. You suggest that Dylan has a narrowly defined view of the company’s product offering. You tell Dylan that successful marketers should define their products as what they _______.

produce

cost customers

deliver

do to satisfy customers

make

7. Assessment question

Scenario 1.3.

Refer to Scenario 1.3. On your advice, Dylan decides to invest more in customer service training and hiring. Satisfaction increases, but not to the level Dylan thinks it should be. He conducts a marketing research study and finds that while most consumers like the product many would like to see additional software available. However, what type of software customers want tends to vary by customer. Dylan has come to believe that customers just do not know how to assess value correctly. Dylan appears to believe that determining value is a(n) _______ process, while in reality the process of assessing value is highly _______.

rational; irrational

complex; simple

subjective; objective

objective; subjective

irrational; rational

8. Assessment question

Scenario 1.1.

Refer to Scenario 1.1. Karen’s sponsor tells her that it is important for her to determine her customer’s needs and then find the product that best meets those needs, regardless of price. She recommends that Karen adopt the _______. In other words, Karen should move from a _______, where she is focused on using her aggressive direct selling talents to maximize profits, toward embracing the more customer-centric _______.

marketing concept; production orientation; sales orientation

relationship marketing model; production orientation; sales orientation

relationship marketing model; market orientation; production orientation

marketing concept; sales orientation; market orientation

marketing concept; sales orientation; production orientation

9. Assessment question

Scenario 1.2.

Refer to Scenario 1.2. From the information provided about Holo Taco and its marketing strategies, Holo Taco most likely embraces a _______.

sales orientation

marketing concept orientation

market orientation

production orientation

promotion orientation

10. Assessment question

Which of the following institutions would be most likely to market an idea as its main product?

A travel agency

A local dry cleaner

Holiday Inn

Taco Bell

Greenpeace

11. Assessment question

Carol needs a ride to downtown Denver. She is not very familiar with the area and is running late for an appointment. In the Uber app she sees an UberX ride is $18. Carol is irritated by the price. Although there is likely a less expensive ride available on another ridesharing app, Carol does not check for other rides and pays for the UberX since a driver is already nearby and the ride will arrive at her destination quickly. Different cost considerations impacted Carol’s decision, but clearly one stood out above all others. Which cost exerted the most influence over Carol’s decision to pay $18 for a ride?

The monetary cost of time

The monetary cost of the effort involved

The non-monetary cost of time

The $18 monetary cost

The non-monetary cost of risk

12. Assessment question

Brandy is a frequent shopper at REI. She reluctantly purchases a pair of climbing shoes that are more expensive than she would like. After a month of frequent use, Brandy regrets her purchase and decides to return the shoes. REI gladly accepted the worn shoes because of its 100% satisfaction guarantee which allows customers to return products up to one year after purchase. This is an attempt by REI to reduce what type of cost?

Effort

Quality

Time

Purchase risk

Monetary

13. Assessment question

Which of the following statements about the marketing environment is false?

Marketing environment forces are uncontrollable, so marketers do not plan for them.

Marketing environmental forces often shape a marketer’s decisions and actions.

The marketing environment influences customers by affecting their lifestyles, standards of living, and preferences and needs for products.

Marketing environment forces can fluctuate quickly and dramatically.

The marketing-mix variables are easier to control than the marketing environment.

14. Assessment question

When Petco decided to eliminate pet food with artificial flavors, colors, and preservatives from its stores, it was most likely responding to which of the following?

Customer lifetime value

Sales orientation

Changes in the marketing mix

Marketing environment forces

Changing regulations

15. Assessment question

Scenario 1.4.

Alan manages a small factory that produces computer graphics cards. Alan operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company’s salesperson Melissa, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships.

Refer to Scenario 1.4. What type of orientation has Alan adopted?

Sales

Production

Customer

Market

Marketing concept

16. Assessment question

Scenario 1.4.

Refer to Scenario 1.4. Recently, Melissa has found that they have begun to reach market saturation. She is having trouble finding new customers. One solution would be to increase the company’s reach, perhaps by opening up locations in other areas. However, she knows this will be expensive. After noticing that many of their customers are planning on expanding and purchasing bigger facilities, Melissa feels that the best option is to increase the company’s _______.

market share

share of customer

promotional efforts

product output

customer lifetime value

17. Assessment question

The Washington family earns $10,000 per month collectively. About $3,000 goes toward taxes and savings. They spend $7,000 on goods and services. Based upon the information in the text, about how much of their money goes toward marketing activities?

$3,000

$4,000

$7,000

$1,500

$3,500

18. Assessment question

A startup skincare company, Skintopical, has been operating for six months. The company is a team of one: Linette, the owner. She single-handedly creates the products and sells them to her friends and family. Sales have slowed, so her sister suggests Linette invest more in marketing to help Skintopical grow. Which of the following statements describes a benefit that marketing offers Skintopical?

It results in lower prices for customers.

It enhances consumer awareness.

It eliminates cultural barriers.

It offers heightened job security.

It gets customers the best deals.

19. Assessment question

IKEA is known for its sustainability initiatives to improve its products and stores. The company uses sustainable sources for its materials and aims to use 100 percent renewable energy. IKEA releases an annual sustainability report to inform stakeholders. IKEA believes in the strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment. This strategic process is called _______.

relationship marketing

green marketing

global marketing

socially responsible marketing

the marketing concept

20. Assessment question

Scenario 1.5

Rebecca works at a biotech firm that develops medicines for rare diseases. The company develops a new medication for a disease that less than 100 people have in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue.

Refer to Scenario 1.5. Her friend Rick, who is taking business classes, tells her that her _______ is very small.

value

marketing mix

price

marketing environment

target market

21. Assessment question

Scenario 1.5.

Rebecca works at a biotech firm that develops medicines for rare diseases. The company develops a new medication for a disease that less than 1,000 people have in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue. Though the medicine was originally sold in a cost-efficient capsule, the firm decided to switch to a premium vegan capsule due to the high demand from its most loyal customers who now avoid animal byproducts.

Refer to Scenario 1.5. This is an example of forces in _______.

the marketing mix

the target market

the marketing environment

value

price

22. Assessment question

Scenario 1.6.

Walmart has a robust supply chain with sustainable suppliers and more than 100 distribution centers. It sells thousands of products at affordable prices. The retailer has a TV advertisement centered around its slogan, “Save Money. Live Better.”

Refer to Scenario 1.6. Which of the following marketing-mix variables does Walmart emphasize in its marketing activities?

Product

Marketing concept

Promotion

Distribution

Price

23. Assessment question

Scenario 1.6.

Refer to Scenario 1.6. Which of the following marketing-mix variables does Walmart focus on by attracting sustainable suppliers?

Promotion

Marketing concept

Product

Price

Distribution

24. Assessment question

Netflix has a wide selection of original content. Its hit show Stranger Things is widely popular and has a large following on social media. Netflix uses its Stranger Things Twitter account to create awareness and build excitement for upcoming seasons by posting teaser trailers, memes, and user-generated content. The account is also known to reply directly to fan questions and posts mentioning the show. This allows for greater use of user-generated content and connectedness to the show and other fans. This is an example of _______.

relationship marketing

market share

customer lifetime value

a market orientation

marketing concept

25. Assessment question

Barry is a business owner who sells high quality drones with HD cameras for personal use. In an effort to improve his skills in social media, he pays to attend an online webinar about Pinterest strategy. What is Barry engaging in?

Changing the marketing environment

Customer relationship management

Satisfying his stakeholder’s needs

Adopting a product orientation

An exchange

Chapter 02 Assignment: Planning, Implementing, and Evaluating Marketing Strategies

1.Assessment question

Which of the following is needed to guide the process of strategic planning to ensure that a concern for customer satisfaction is an integral part of the entire company, thereby leading to the development of successful marketing strategies and planning process?

Mission statement

Marketing objective

Market orientation

SWOT analysis

Market growth/market share matrix

2.Assessment question

Google has widely posted the following: “to organize the world’s information and make it universally accessible and useful.” This is most likely a part of Google’s _______.

corporate strategy

strengths

marketing plan

mission statement

marketing objective

3.Assessment question

The Coca-Cola Company introduced a low-sugar, high-protein, lactose-free dairy milk product called Fairlife. For Coca-Cola, Fairlife milk products represent which of the following growth strategies?

Diversification

Product development

Market penetration

Product penetration

Market development

4.Assessment question

Procter & Gamble’s Tide laundry detergent has a dominant share of the detergent market in the United States. It makes $4.5 billion in sales of this detergent brand. However, the detergent market has reached market saturation in the United States. With this information, what type of product is Tide based upon the Boston Consulting Group’s market growth/market share matrix?

Cash cow

Question mark

Star

Dog

Pig

5.Assessment question

The United Way, a nationwide nonprofit, recently hired a new top executive. He is currently occupied with refining the scope of the organization and assessing its resource deployment, competitive advantages, and overall coordination of functional areas. The United Way’s executive is focusing on _______.

business-unit strategy

SWOT analysis

corporate strategy

mission statement

marketing strategy

6.Assessment question

Amazon’s Echo product line of smart speakers has 61 percent of a market that has grown from 47 million speakers to 66 million speakers in just one year. With this information, what type of product is the Echo speaker based upon the Boston Consulting Group’s market growth/market share matrix?

Cat

Dog

Cash cow

Question mark

Star

7.Assessment question

Which of the following is a disadvantage of being a first mover in the market?

The chance that products will be protected by patents

Inability to accurately predict performance standards

Costs of marketing plan implementation

Large outlays associated with creating a new product

High switching costs consumers may experience

8.Assessment question

Which of the following is an advantage of being a late mover in the market?

The chance that products will be protected by patents

Ability to benefit from first movers’ mistakes

High switching costs consumers may experience

Large outlays associated with creating a new product

Costs of marketing plan implementation

9.Assessment question

Which of the following is probably the most important decision a company makes during the strategic planning process?

Conducting a SWOT analysis

Creating the marketing mix

Choosing a target market

Evaluating marketing performance

Developing a marketing strategy

10.Assessment question

How does a sustainable competitive advantage differ from a competitive advantage?

A sustainable competitive advantage has an environmental focus.

A sustainable competitive advantage lasts forever.

A sustainable competitive advantage is when a company matches a core competency to opportunities in the marketplace.

A sustainable competitive advantage is one that competitors cannot copy in the immediate future.

A sustainable competitive advantage occurs when the company takes advantage of temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market.

11.Assessment question

Hank’s small restaurant business is doing extremely well, and it often has hours-long waits at peak dining times. Hank thinks it is time to grow the business by opening new restaurants to take advantage of his success. He has begun the strategic planning process and has set the following objective for his company: grow the business by 10 percent in one year. What’s wrong with Hank’s marketing objective?

It should be expressed in clear, simple terms.

It should be measurable.

It should be consistent with business-unit and corporate strategies.

It should be comparable to rival firms.

It should specify a time frame for its achievement.

12.Assessment question

Marty works at an organization with a clear chain of command. The major decisions are relegated to top managers. Marty and his co-workers have strict performance standards. Managers at his organization monitor the work of employees to make sure they are staying on track. What type of organization is Marty’s company?

Bureaucratic

Decentralized

Centralized

Customer-oriented

Laissez-faire

13.Assessment question

Barry is in charge of implementing his unit’s marketing strategy, and he is currently engaged in establishing a timetable for implementation activities. Which of the following is Barry’s final step in establishing an implementation timetable?

Organizing the activities in the proper order

Determining the time required to complete each activity

Assigning responsibility for completing each activity to one or more employees, teams, or managers

Identifying the activities to be performed

Separating the activities to be performed in sequence from those to be performed simultaneously

14.Assessment question

Why might a marketer want to engage in marketing cost analysis?

To reflect the market’s reaction to the marketing mix

To determine how much the company will charge customers

To evaluate the firm’s strengths and weaknesses

To help outline how the company will achieve its objectives

To allocate the firm’s marketing resources better in the future

15.Assessment question

Scenario 2.1.

Ajei is working on a SWOT analysis of a local Mexican restaurant Tres Pimientos in Flagstaff. She writes down that the organization has high customer loyalty, resources for expansion, a large social media following, and strong management. She also writes that the market for salsa products is high and more people are eating out. On the other hand, one major complaint levied against the restaurant is that it is high priced and other casual-dining restaurants with less expensive menu offerings are locating to the city. Still, Ajei believes the restaurant’s talented and well-known chef provides it with an advantage that other restaurants do not have.

Refer to Scenario 2.1. Which of the following characteristics of the Mexican restaurant represents an opportunity?

Customer loyalty

Strong management

Greater demand for salsa products

Strong organizational resources

Talented and well-known chef

16.Assessment question

Scenario 2.2.

Ajei’s manager believes that Tres Pimientos can gain an advantage over competing Mexican restaurants in the area by capitalizing on the growing demand for salsa. He believes the firm’s top-secret salsa recipe could be the key to expanding into another market niche. The manager has proposed developing a line of its salsas in 16-ounce jars to sell at its restaurant. This way its loyal customers could buy its salsa outright and serve it at home. Ajei has been tasked with determining the feasibility of this strategy.

Refer to Scenario 2.2. What type of competitive growth strategy is Ajei’s manager discussing?

Market development

Product penetration

Market penetration

Diversification

Product development

17.Assessment question

Scenario 2.3.

Ajei continues to work on the marketing strategy for Tres Pimientos. Tres Pimientos was successful in selling 16-ounce jars of salsa in its restaurant. In fact, demand for the jars of salsa is so high that Ajei believes Tres Pimientos should try to expand and start selling in stores and online. She believes Tres Pimientos salsa has the potential for enormous growth, perhaps even more so than the actual restaurant.

Refer to Scenario 2.3. Ajei’s manager is skeptical. Such an investment would require a manufacturing facility, a larger marketing budget, and salespeople who would be able to get the salsa onto store shelves. However, Ajei maintains that Tres Pimientos’s secret salsa recipe provides it with a core competency. The market for salsa is also strong. She believes this provides Tres Pimientos with a chance to match its core competency to market opportunities, otherwise known as a(n) _______.

strategic window

late-mover advantage

competitive advantage

first-mover advantage

optimal fit

18.Assessment question

Scenario 2.4.

It is a year later. Ajei’s manager decided that the company would develop a salsa business. Ajei has been in a flurry of activity since then. Not only did the company have to invest in a building and equipment, but she has had to develop marketing strategies for the new salsa business. The marketing strategies are now complete and ready to be put into action. Ajei was placed in charge of marketing implementation. She has spent several months organizing the marketing unit, training employees, coordinating the marketing staff, developing a social media plan, and communicating the goals and objectives of the strategy.

Refer to Scenario 2.4. What is the next step Ajei should take to implement the marketing strategy?

Establishing performance standards

Undertaking a SWOT analysis

Creating the marketing mix

Establishing a timetable for implementation

Evaluating the marketing strategy

19.Assessment question

Scenario 2.5.

Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal customers and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing actions he needs to take to spread awareness of his company and attract consumers to his business.

Refer to Scenario 2.5. Paul is at the stage of his marketing plan where he needs to gather information about his firm’s situation with respect to the market. A major part of this is his assessment of target markets. Which section is he about to write?

Environmental analysis

SWOT analysis

Marketing strategies

Executive summary

Marketing objectives

20.Assessment question

Scenario 2.5.

Refer to Scenario 2.5. Paul would like his sales for next month to reach $30,000. This is an example of a _______.

business-unit goal

performance standard

sales analysis

marketing strategy

strategic plan

21.Assessment question

Scenario 2.5.

Refer to Scenario 2.5. Paul is conducting a SWOT analysis and has identified his opportunities, threats, and strengths. What is his store’s primary weakness?

Supplier dissatisfaction

Customers’ lack of awareness of the store

Supplier satisfaction

Customers’ dissatisfaction

Failure to identify the target market

22.Assessment question

Scenario 2.6.

Margie noticed that sales of her company’s newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms’ efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance.

Refer to Scenario 2.6. At what stage of the strategic planning process is Margie?

Assessing organizational resources and opportunities

Managing marketing implementation

Developing a marketing plan

Evaluating marketing strategies

Developing marketing strategies

23.Assessment question

Scenario 2.6.

Refer to Scenario 2.6. What method of analysis is Margie using?

Sales analysis

Performance assessment

Strategic analysis

Performance comparison

Marketing cost analysis

24.Assessment question

Scenario 2.6.

Refer to Scenario 2.6. Margie believes this is the optimal time to seize upon this opportunity. Through the bike’s patented design, her company has capabilities that fit the unique demands of this growing market. Margie wants to capitalize on this opportunity before these market trends have a chance to change. This period for Margie’s firm is known as a _______.

competitive advantage

sales boost

product opportunity

core competency

strategic window

25.Assessment question

Scenario 2.6.

Refer to Scenario 2.6. Margie’s company’s electric bicycle, which is patented so that rival firms cannot replicate it, has a _______.

sustainable competitive advantage

first-mover advantage

late-mover advantage

competitive advantage

strategic window

Chapter 03 Assignment: The Marketing Environment, Social Responsibility, and Ethics

1.Assessment question

Kayla is a digital marketing strategist for a major cosmetics company. She is new to the beauty industry, so she decides to subscribe to the beauty publication Allure Magazine. She also collects new information by monitoring social media. In what process is Kayla engaging?

Technology assessment

Competitive assessment

Environmental scanning

Environmental analysis

SWOT analysis

2.Assessment question

Loretta is a product manager at a popular printing company. Though none of her small business clients have requested to print on recycled paper, Loretta decides to stock some recycled paper products anyway because she sees this as an opportunity to increase her company’s reputation for sustainability. She attempts to influence her clients to switch to printing on the new materials. This is known as what type of approach?

Governmental

Reactive

Proactive

Competitive

Environmental scanning

3.Assessment question

Handel started a new job as a junior marketing research analyst. After the basic necessities of food, clothing, and rent, he has a good amount of income that is available for spending and saving. What is this income known as?

Discretionary income

Primary income

Willingness to spend

Wealth

Disposable income

4.Assessment question

Diya, the senior IT manager for a restaurant chain, knows that many of the restaurant’s vegetable suppliers have begun to adopt blockchain technology to better trace their products through the supply chain. Diya tries to foresee the effects of blockchain technology on her restaurant chain’s operations, on other business organizations, and on society in general. What is this process known as?

Culture analysis

Self-regulation

Competitive assessment

Technology assessment

Environmental analysis

5.Assessment question

Randy writes letters and send emails regularly to companies whose activities he deems irresponsible. Last year he wrote letters to a plastics company that dumped waste into the local waterways. Recently, he joined a group of people that aim to expose scam artists in order to protect consumers’ rights. What are these organized efforts called?

Self-regulation

Sustainability

Consumer analysis

Consumerism

Right to be heard

6.Assessment question

Chuck is a marketing strategist at Microsoft. He spent several weeks collecting information about environmental forces that will influence his industry in the near future. Now, he needs to make sense of the data and extract insights which he hopes will improve Microsoft’s marketing strategy in relation to competitors. Which type of activity is Chuck about to do?

SWOT analysis

Environmental analysis

Technology assessment

Environmental scanning

Competitive scanning

7.Assessment question

Scenario 3.1.

Tiana is a student at University of Colorado Boulder who recently landed a summer internship working for the marketing department at Frontier Airlines. She is assisting Duke, one of the marketing managers, with a competitive assessment of the U.S. market. In addition, he tells her to think beyond direct competitors to any competitors that might be able to offer similar services as Frontier Airlines.

Refer to Scenario 3.1. Which of the following represents a brand competitor to Frontier Airlines?

Spirit Airlines

Uber

FedEx Express

Greyhound Bus

Harley Davidson

8.Assessment question

Scenario 3.1.

Refer to Scenario 3.1. Which of the following represents a generic competitor to Frontier Airlines?

Greyhound bus system

Blue Star Jets (on-demand private charter)

Schwinn bicycle

Spirit Airlines

FedEx Express

9.Assessment question

Scenario 3.1.

Refer to Scenario 3.1. Because Frontier Airlines operates in a(n) _______, if Spirit Airlines lowers prices, Frontier will likely _______.

oligopoly; not change theirs

monopoly; lower prices

monopolistic competition; increase prices

monopolistic competition; do the same

oligopoly; do the same

10.Assessment question

Which of the following products MOST closely resembles pure competition?

Cereal

Candy bars

Televisions

Table salt

Mobile homes

11.Assessment question

Though the cost of living is high where Jared lives in San Francisco, he’s been able to stash extra money each month into his savings account. The savings in his savings account would fall under which of the following?

Prosperity

Wealth

Disposable income

Credit

Discretionary income

12.Assessment question

During what period in the business cycle are firms first likely to cut their marketing budgets?

Recession

Recovery

Depression

Prosperity

Economic standstill

13.Assessment question

What is the significance of the 2010 Supreme Court decision Citizens United v. Federal Election Commission?

It ruled that citizens have the right to sue firms for donating large sums to candidates.

It ruled that politicians must cap the donations they receive from companies.

It ruled that individuals are authorized to donate as much money as they like to candidate elections.

It ruled that the government is not authorized to ban corporate spending in candidate elections.

It ruled that the government has the authority to place limits on corporate spending in candidate elections.

14.Assessment question

AT&T spends millions of dollars on lobbying every year. Lobbying involves which type of force in the marketing environment?

Political

Competitive

Legal and regulatory

Economic

Sociocultural

15.Assessment question

NutriTaste receives a cease-and-desist order demanding that the nutrition supplement business stop using deceptive packaging from the federal regulatory agency that has the most influence over marketing activities. Which agency is the order from?

Consumer Product Safety Commission (CPSC)

Federal Trade Commission (FTC)

Better Business Bureau (BBB)

Food and Drug Administration (FDA)

Federal Communications Commission (FCC)

16.Assessment question

Scenario 3.2.

Internet privacy is a major issue. In fact, in Europe there are privacy laws to limit how much information websites can collect from users without their permission. The United States does not have comparable laws to protect consumer privacy on the internet. Collecting this information is beneficial for firms because then they can tailor marketing messages that better fit their users’ needs. These better marketing campaigns can provide them with a competitive advantage. Acme Corporation uses cookies and other devices to collect information. Its privacy policy explicitly informs users that it collects information. However, most people do not read through the policy. Lately, some consumers have complained because they are worried that their information could be compromised. They question the security of the site. Acme wants to restore confidence and prove that it has controls in place.

Refer to Scenario 3.2. What type of environmental force does this issue involve?

Political

Legal and regulatory

Technological

Competitive

Sociocultural

17.Assessment question

Scenario 3.2.

Refer to Scenario 3.2. Acme wants to hire a third-party verification site with strong privacy criteria that specializes in internet security to view its site. If Acme meets these criteria, it can display a special seal on its website, demonstrating to users that Acme’s website meets high standards in internet security and reassuring consumers that their information is safe. What type of activity is Acme engaging in?

Self-regulation

Philanthropy

Technology assessment

Consumerism

Obedience to relevant laws

18.Assessment question

The majority of Americans have cell phones with no other phone services such as a landline. The decrease in landlines has affected many industries. The _______ of technology involves the constant change that challenges every aspect of our society.

self-sustaining nature

dynamics

reach

breadth

scope

19.Assessment question

Soda companies are worried because sales have fallen. People today are more concerned about their sugar intake and want to be healthier. This reflects a change in _______.

cultural values

diversity characteristics

demographics

ethical values

consumerism

20.Assessment question

Marjorie, a Venezuelan business professional, considered the U.S. market for her new baby clothing company. After conducting environmental scanning and analysis, she determined the U.S. is not the best fit for her company because of changes in U.S. demographic data. Which of the following statements is true about how our U.S. demographics are changing?

Married couples are on the rise.

The population has sunk to a low point.

The U.S. is undergoing another baby boom.

Immigration has begun to stall.

Fertility rates are at their lowest.

21.Assessment question

TOMS is well known for having strong principles and standards that define acceptable conduct in marketing as determined by various stakeholders. What is this known as?

Marketing citizenship

Marketing ethics

Strategic philanthropy

Cause-related marketing

Social responsibility

22.Assessment question

Every year Jersey Mike’s hosts an annual one-day event where 100 percent of its sales is donated to a charity of the store owner’s choice. In recent years, 200+ charities were supported nationwide from the sales of the store’s 1,500 locations. These events that Jersey Mike’s funds every year are best described as which of the following?

Stakeholder orientation

Sustainability

Marketing ethics

Cause-related marketing

Strategic philanthropy

23.Assessment question

A lawsuit was filed against Naked Juice because of its claims that its products are “natural.” The lawsuit claimed that because it contained synthetic ingredients it did not fit the definition of “natural” and was therefore misleading. Naked Juice agreed to drop the “natural” claim. According to critics, Naked Juice was violating consumers’ right to _______.

be heard

choose

be informed

safety

redress

24.Assessment question

Social responsibility refers to an organization’s obligation to maximize its positive impact and minimize its negative impact on society. Ben & Jerry’s built socially responsible principles into its original business model. Which of the following is true about social responsibility?

Social responsibility improves marketing performance.

Social responsibility automatically reduces costs.

Social responsibility will eliminate ethical issues in marketing.

Social responsibility results in fewer marketing problems.

Social responsibility will always be profitable.

25.Assessment question

To improve ethics, an artificial intelligence company developed formalized rules and standards that describe what the company expects of its employees. The company created this _______ ahead of its IPO because it is required by the New York Stock Exchange.

algorithm

environmental analysis

code of conduct

ethics training

strategic philanthropy approach

Chapter 04 Assignment: Marketing Research and Analytics

1.Assessment question

Karissa works for a company that sells sour cream. Sales are down, so she begins a research project. First, she develops a hypothesis that consumers perceive Greek yogurt as a healthier alternative to salsa. She ensures that her research techniques are both reliable and valid. The next step for Karissa is to _______.

report research findings

interpret research findings

identify the problem

collect data

design the research project

2.Assessment question

Big Burgers BBQ has been testing a number of new menu items in its restaurants as part of a turnaround strategy, including sales of kombucha, breakfast served at all hours, and premium chef-crafted sandwiches. Big Burgers BBQ is conducting _______ research which allows it to make causal deductions about relationships.

descriptive

exploratory

probability sampling

experimental

conclusive

3.Assessment question

Annalise is performing a marketing research study on restaurant menu items containing cauliflower as a feature ingredient. She believes this study will prove that consumers are increasingly attracted to cauliflower because of its rise in popularity on social media and reported connection to health benefits. Annalise is developing a(n) _______.

survey

conclusion

hypothesis

customer advisory board

statistical interpretation

4.Assessment question

The real value of marketing research is measured by _______.

stronger customer loyalty

more streamlined operations

increased profits

lower costs

improved decision-making ability

5.Assessment question

Alec collected primary and secondary data for his marketing research project. After collecting data to test his hypothesis, Alec needs to _______.

design the research project

collect data

report the research findings

define research issues

interpret the research findings

6.Assessment question

Scenario 4.1.

Kamilah is a member of a student group that is assigned to work with a local Tex-Mex restaurant to collect marketing research. The restaurant wants to determine if a new type of taco will be successful. Kamilah’s group decides to organize a taste test where respondents try the new taco and fill out a survey. Questions would ask whether or not they liked the taco, what they liked or disliked about the taco, and whether they would purchase it at various price points.

Refer to Scenario 4.1. What type of research is Kamilah’s team collecting?

Descriptive research

Conclusive research

Focus group research

Exploratory research

Experimental research

7.Assessment question

Scenario 4.1.

Refer to Scenario 4.1. An auditorium is filled with several hundred potential participants. Kamilah’s group chooses to divide the population into groups based on gender and race to ensure that representative categories of respondents are included. This is likely an example of _______.

quota sampling

probability sampling

crowdsourcing

stratified sampling

random sampling

8.Assessment question

Max works for Mountain Dew and has been told the soda company wants to test a new beverage idea on some of its consumers. The budget Max is given is much higher than Max estimates he will need, and he has plenty of time to complete the survey. He would like to collect very accurate data and wants to encourage respondents to be highly detailed in their responses. He plans to ask probing follow-up questions. Which survey method is best for Max?

Online surveys

Crowdsourcing

Telephone surveys

Personal interview surveys

Mail surveys

9.Assessment question

Libby is part of an online group of people who act as sounding boards for new ideas from one of her favorite companies. Libby does not interact much with the other people in her group, but she provides her own insights about proposed products. Libby is part of a(n) _______.

customer advisory board

stratified sample

online sample

online focus group

research design

10.Assessment question

Scenario 4.2.

Olivia works at Ginger, a woman’s clothing store. Olivia noticed that while the store was popular with women of all ages it was selling few of its jeggings to females over 45. While they bought tops, shorts, and dresses, rarely any sales from this group of females included jeggings. In contrast, Ginger’s jeggings were highly popular among those under 45. Olivia would like to conduct research to see why this is so.

Refer to Scenario 4.2. What type of research will she likely conduct?

Experimental research

Secondary research

Exploratory research

Descriptive research

Focus group research

11.Assessment question

Scenario 4.2.

Refer to Scenario 4.2. Now that Olivia has located and defined the problem, the next step in the marketing research process is to _______.

collect data

design the research project

report research findings

interpret research findings

conduct surveys

12.Assessment question

L’Oréal is considering developing a new line of protein-free shampoo and conditioner. Before the company invests too many resources, it would like to collect consumer insights to determine what customers are looking for in shampoo and conditioner and whether its protein-free products will catch on. The company brings together a group of ten consumers plus a moderator to direct discussion. L’Oréal is most interested in the unique insights it could collect through group interaction. This is known as a _______, which is a part of _______ research.

customer advisory board; conclusive

focus group; descriptive

focus group; conclusive

focus group; exploratory

customer advisory board; exploratory

13.Assessment question

Trader Joe’s wants to study how its customers over age 65 shop. It sets up a mock store made to look exactly like a normal store and invites older consumers to shop in the authentic-feeling environment. Researchers record what they see and use this to develop a report for Trader Joe’s marketing department. What type of data collection practice is being used here?

Crowdsourcing

Customer advisory boards

Focus groups

Observation

Surveying

14.Assessment question

Instagram has an enormous amount of data on the ways its users interact with content in its app. Instagram uses sophisticated software to store and analyze the data. What are these data called?

Single-source data

Databases

Big data

Marketing information systems

Marketing decision support systems

15.Assessment question

Maria works for an artificial intelligence company powered by big data. A new client calls Maria and explains they have an extremely large quantity of structured data across multiple systems. Specifically, the client needs Maria’s company to link, match, and transform data across systems. What is the client requesting help with?

Variability

Variety

Complexity

Velocity

Volume

16.Assessment question

Scenario 4.3.

Quinn is the new marketing analyst for a sporting goods retailer. He quickly discovers that the accounting team has a file of fixed data on customer transactions that is isolated from the rest of the organization. Quinn suggests the data should be shared to relevant departments to tackle problems and provide solutions.

Refer to Scenario 4.3. What is the fixed data Quinn discovered called?

High volume data

A data lake

Big data

A data silo

Complex data

17.Assessment question

Scenario 4.3

Refer to Scenario 4.3. In response to Quinn’s call to action, management requests all departments contribute their fixed data files to a large pool of data that is openly available to all departments. What is this pool called? Choose the best answer.

Big data

Complex data

A data silo

A data lake

Single-source data

18.Assessment question

Jacob runs a software company with mountains of data across multiple databases. He wants to interpret the effectiveness of his firm’s marketing functions using databases, big data, and measurement methods enabled by technology in order to make better marketing decisions. What is Jacob interested in?

Marketing analytics

Single-source data

Marketing decision support systems

Marketing information systems

Big data

19.Assessment question

Many marketers collecting information turn to LexisNexis. LexisNexis contains articles on a variety of topics as well as cases and news documents. LexisNexis would most likely be considered which of the following?

Single-source data

A database

A marketing analytics tool

A marketing decision support system

A marketing information system

20.Assessment question

Mario, a marketing researcher for a popular dog food brand, is watching people in a Petco to see how long customers tend to linger in front of certain items of interest. Mario is engaging in _______ to collect _______ data.

analysis; primary

observation; secondary

analysis; secondary

observation; primary

focus groups; primary

21.Assessment question

Jung-hoon performed an experiment over and over again in his quest to understand buyer behavior. He always got similar results. Jung-hoon went to his manager with his results and told them that this knowledge could help them improve the company’s marketing strategy. However, the manager pointed out that Jung-hoon's results do not prove an association between his outcomes and buyer behavior. In fact, the manager can think of a number of factors proven to be more effective in influencing buyer behavior. In this case, Jung-hoon's results lacked _______.

importance

feasibility

reliability

integrity

validity

22.Assessment question

Jerry works for a pharmaceutical company that wants to conduct a survey about substance abuse. Since this is a sensitive topic, he wants respondents to feel comfortable sharing their responses and to eliminate interviewer bias. Consumers are most likely to remain anonymous through which survey method?

Email surveys

Telephone surveys

Mall intercept surveys

Mail surveys

Personal interview surveys

23.Assessment question

SAP HANA is a relational database management system created by SAP. To sell its product, SAP promotes the importance of the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities. What is this called?

Research design

Marketing analytics

Marketing research

Big data

Crowdsourcing

24.Assessment question

Marketers should identify and be aware of ethical issues that can influence research. Marketing research requires understanding of acceptable activities that ensure the _______ of gathering, analyzing, and reporting data.

reliability

integrity

importance

validity

feasibility

25.Assessment question

A massive online retailer often uses data on customer demographics, interests, and behavior and wants to learn more about its best customers. It decides to track its customer’s online behavior to offer more personalized services with the shopper’s consent. The retailer clearly outlines how the data will be used. The retailer sells its data, including personally identifiable data, to a third-party marketing research agency. What ethical issue in marketing research is at play here?

Privacy

Transparency

Data reliability

Interviewer bias

Data validity

Chapter 05 Assignment: Target Markets: Segmentation and Evaluation

1.Assessment question

If you purchase an iPad for taking notes in school and to watch videos, you are part of which of the following?

Business market

B2C market

Industrial market

Organizational market

B2B market

2.Assessment question

Danny just purchased a new iPad to use with the Square system for conducting transactions and tracking his stock in his small business. Danny is part of which of the following?

Institutional market

Government market

Producer market

B2C market

B2B market

3.Assessment question

Which of the following food products would most likely use an undifferentiated marketing strategy?

Pizza

Soy milk

Coffee

Hot sauce

Corn

4.Assessment question

An undifferentiated marketing strategy is likely to fail even if a firm has the resources to develop a single marketing mix that satisfies customers’ needs if the market for the product is _______.

unpredictable

prohibitive

uniform

heterogeneous

homogeneous

5.Assessment question

If a furniture maker targets the consumer and business markets for office desks with separate marketing mixes for each, it is using the _______.

undifferentiated targeting strategy

concentrated targeting strategy

heterogeneous targeting strategy

differentiated targeting strategy

homogeneous targeting strategy

6.Assessment question

Why would Domino’s and Little Caesar segment the market for pizza?

Because customer needs tend to vary

Because customer needs are homogeneous

To avoid competition

To be able to concentrate on a segment

Because segmentation is less expensive

7.Assessment question

A buffet restaurant targets those who love “all-you-can-eat” meals. Its promotions target those who desire to get more for less money and/or those who like variety in their meals. However, the company knows that many of the people who come in will not eat as much. Others, however, may eat way past the value of what they paid. The buffet has balanced this out in its pricing strategy, classifying its diners as light eaters, moderate eaters, and heavy eaters. What type of segmentation strategy is the buffet using?

Behavioristic variables

Psychographic variables

Benefit segmentation

Customer size

Demographic variables

8.Assessment question

Penny is a pharmaceutical sales rep who promotes the benefits of her company’s latest medicine. The medicine’s benefits and side effects are complex, so she personally visits doctors in large medical practices and hospital administrators to explain the drug’s benefits, side effects, and value in prolonging lives. Such personal selling efforts are often used by firms segmenting by _______.

size and type of organization

size of organization and reason for use

demographics and geographic location

size and geographic location

type of organization and reason for use

9.Assessment question

At what stage of the target market selection process is the marketer first likely to uncover information that makes a segment less attractive than previously thought?

Identifying the appropriate targeting strategy

Developing market segment profiles

Selecting specific target markets

Determining which segmentation variables to use

Evaluating relevant market segments

10.Assessment question

Misaki, a sales manager at a startup cosmetics company, wants to determine her company’s market potential. She first develops a general economic forecast for a specific time period. Next, she estimates market potential based on this forecast. Finally, she derives the company’s sales potential from the forecast and an estimate of market potential. What type of approach is Misaki using?

Cost estimates

Executive judgment

Breakdown approach

Competitive assessment

Buildup approach

11.Assessment question

Which of the following statements about sales estimates is correct?

Industry-wide marketing activities directly impact the company’s sales potential.

Market potential places absolute limits on company sales potential.

In the buildup approach, the marketing manager first develops a general economic forecast for a specific time period.

Market potential is the maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product.

Competitive efforts have little influence over company sales potential.

12.Assessment question

Which of the following is calculated during the fourth step of the target market selection process to determine whether the expense of reaching a particular segment is worthwhile?

Micromarketing

Target market selection

Regression analysis

Cost estimates

Market segmentation

13.Assessment question

At what stage of the target market selection process is management likely to investigate whether the organization has sufficient financial resources, managerial skills, employee expertise, and facilities to compete effectively in selected segments?

Identifying the appropriate targeting strategy

Determining which segmentation variables to use

Developing market segment profiles

Evaluating relevant market segments

Selecting specific target markets

14.Assessment question

Which of the following would be a cost-effective, fairly accurate way of coming up with a sales forecast if product demand is relatively stable and managers at the firm have a long tenure in the field?

Regression analysis

Market tests

Executive judgment

Time series analysis

Customer forecasting survey

15.Assessment question

Taye works at a retail store that sells a variety of items, including umbrellas. Taye knows that people buy umbrellas more in the summer season because of the higher frequency of storms. He has identified a formula based on past umbrella sales during the summer season. Taye believes he can use this formula to predict future sales forecasts with a high degree of accuracy. This is an example of what type of sales forecast?

Market tests

Time series analysis

Surveys

Regression analysis

Executive judgment

16.Assessment question

Marketing managers at Nordstrom have had experts create initial forecasts, averaged their results, and then returned the averages to the experts to refine their individual forecasts. Which technique are Nordstrom managers using?

The Delphi technique

The sales forecasting survey

The expert forecasting survey

Executive judgment

Regression analysis

17.Assessment question

Scenario 5.1.

Cynthia is in charge of strategic planning at an engineering firm in Arizona that installs transmission lines and works with the electrical systems of buildings. Mostly her firm has worked with cities such as Tucson and Phoenix. Once in a while it receives a major project from the state, such as renovating a government building in the capital. However, Cynthia’s firm wants to expand its target market beyond government projects. Under her direction, the marketing team launched an initiative to target more potential clients in different areas. Two areas in which Cynthia would like to expand include colleges and large for-profit businesses.

Refer to Scenario 5.1. A market is a group of individuals and/or organizations that have a desire or need for products in a product class and have the ability, willingness, and authority to purchase those products. There are two types of markets. Cynthia’s organization targets the _______.

online market

technology market

business market

B2C market

consumer market

18.Assessment question

Scenario 5.1.

Refer to Scenario 5.1. How is Cynthia’s company segmenting the market for its services?

Demographic variables

Product use

Geographic location

Type of organization

Customer size

19.Assessment question

Scenario 5.2.

Angel wants to become a successful brewer. He analyzes the target market for beer and finds that there is a market niche for gluten-free beer. Angel considers the types of markets he can target with his beer. He knows that many people perceive gluten as unhealthy and might be inclined to buy his beer due to its gluten-free nature. However, he also knows there is a strong demand among those who suffer from Celiac disease. After doing sales and cost estimates, Angel feels ready to make a decision.

Refer to Scenario 5.2. In making his decision, Angel is at what stage in the target market selection process?

Evaluating relevant market segments

Developing market segment profiles

Selecting specific target markets

Identifying the appropriate targeting strategy

Determining which segmentation variables to use

20.Assessment question

Scenario 5.2.

Refer to Scenario 5.2. Angel is segmenting the market based on what type of segmentation variable?

Demographic variables

Behavioristic variables

Geographic variables

Benefit segmentation

Psychographic variables

21.Assessment question

Scenario 5.2.

Refer to Scenario 5.2. Assume that Angel decides that he wants specifically to target those who suffer from Celiac disease. Although he realizes that many consumers avoid gluten simply for health reasons, he believes putting his marketing muscle behind a marketing strategy that would target one specific market segment is the way to go. Which targeting strategy is Angel using?

Concentrated targeting strategy

Segregated targeting strategy

Undifferentiated targeting strategy

Homogeneous targeting strategy

Differentiated targeting strategy

22.Assessment question

Scenario 5.3.

Eaton sells many industrial products for the lighting and solar industry, including lighting controls, landscape lighting, lighting relay and metering panels, flood lighting, and more. Among its vast array of products, it also sells lighting accessories and lighting solutions for private residences.

Refer to Scenario 5.3. On Eaton’s website, the firm segments its product offerings as aerospace, filtration, hybrid power, electrical, hydraulics, industrial clutches and brakes, plastic extrusion, and vehicle. What type of segmentation strategy has Eaton most likely adopted?

Lifestyle

Benefit segmentation

Type of organization

Customer size

Product use

23.Assessment question

Scenario 5.4.

Mistine is a direct selling cosmetics firm based in Thailand. Originally, it made a name for itself selling an affordable product that was of good quality. It focused mainly on housewives. However, over the years Mistine has expanded its focus, targeting more groups such as teenagers and higher-income women. Unlike many comparable direct selling firms, Mistine engages in much advertising. Its advertising campaigns must be tailored toward the appropriate target market.

Refer to Scenario 5.4. What type of segmentation strategy is Mistine using?

Undifferentiated targeting strategy

Concentrated targeting strategy

Heterogeneous targeting strategy

Differentiated targeting strategy

Homogeneous targeting strategy

24.Assessment question

Scenario 5.4.

Refer to Scenario 5.4. Suppose a marketing manager at Mistine wants to determine the company’s market potential. They first estimate how many cosmetic products potential buyers will purchase in their sales territory during a given period. They multiply that amount by the total number of potential buyers in that area and then perform the same calculations in the other territories in which Mistine operates. They then add together the totals to get the company’s market potential. What type of approach is the marketing manager using?

Buildup approach

Cost estimates

Executive judgment

Breakdown approach

Competitive assessment

25.Assessment question

Scenario 5.4.

Refer to Scenario 5.4. Assume that Mistine wants to break into the Kenyan market. It is entering the market for the first time and is unsure about how successful its products will be. Mistine’s management team wants to develop a sales forecast for the area. Which of the following would be most appropriate in terms of accuracy?

Market tests

Regression analysis

Time series analysis

Surveys

Executive judgment

Chapter 06 Assignment: Consumer Buying Behavior

1.Assessment question

You are thinking about buying a tablet to help with your classes and for entertainment purposes. When you search your memory for information about products that might address these needs, you are engaging in which aspect of the consumer buying decision process?

External information search

Consideration set

Cognitive dissonance

Evaluative criteria

Internal information search

2.Assessment question

Jamie works as a salesperson at a car dealership. She takes her sales very seriously. After selling a car to a customer, she waits two weeks and then calls the customer to see how they like their new car. She tries to reinforce the fact that they made a smart investment and that the dealership is there for any problems they might have. Jamie is attempting to reduce _______.

evaluative criteria

negative self-concepts

selective distortion

selective exposure

cognitive dissonance

3.Assessment question

Felipe is out shopping for a motorcycle. He sees a motorcycle he really likes, but he seems to remember reading something about its gas mileage. He racks his brain trying to remember but is unable to recall the information. He therefore decides to come back another day. He goes home and researches the motorcycle on the internet. During his information search, Felipe performed _______ and then _______.

an internal search; another internal search

an information search; an internal search

an internal search; an external search

an external search; another external search

an external search; an internal search

4.Assessment question

What is the latest stage during which a buyer can terminate the buying decision process?

Postpurchase evaluation

Problem recognition

Purchase

Information search

Evaluation of alternatives

5.Assessment question

For which of the following products would a consumer most likely use limited decision making in a purchase situation?

Legal services

Living room curtains

Cigarettes

A Hershey candy bar

An RV

6.Assessment question

Fahad’s lawnmower stopped working midway through mowing his front yard. His interest in researching replacement lawnmower brands is most likely to be _______.

routinized response behavior

enduring involvement

extended decision making

low involvement

situational involvement

7.Assessment question

As Darby stands in line at the grocery store, he notices a new flavor of gum on the nearby stand. He grabs the gum and throws it in the cart. What type of behavior is Darby exhibiting?

Limited decision making

Problem recognition

Impulse buying

Extended decision making

Routinized response behavior

8.Assessment question

Ji-eun loves her car. Recently, she noticed her tires were getting worn. She took it into the dealership, where she was told that all her tires were worn and should be replaced. Ji-eun knows this will be a significant investment. She decided on getting the most expensive tires because they are high quality and she wants the best. She hopes she is making the right decision. At least she will not have to purchase tires for several more years, unless she gets a flat. Ji-eun’s involvement with her tire purchase is an example of ______.

temporary involvement

enduring involvement

low involvement

situational involvement

routinized involvement

9.Assessment question

Darrell went to a restaurant where the beer was mediocre and the place was run down. The restaurant was out of many of its more popular menu items. Yet Darrell remembered the restaurant fondly because he had dinner with the woman that he would end up dating steadily. They really hit it off that night. A few months later he decides to return to the restaurant, only to find that he was disappointed in the food and service. He thinks it’s strange because he had such a good experience last time. What situational factor likely influenced Darrell’s first experience?

Reason for purchase

Buyer mood or condition

Physical surroundings

Social surroundings

Time considerations

10.Assessment question

When you are using the internet to research a school project, and you ignore the banner ads on websites even though you see them flashing on the page, you are probably engaging in the process of _______.

learning

self-concept

selective distortion

selective exposure

selective retention

11.Assessment question

Nike is updating data about its many marketing segments for athletic shoes. The company uses a number of variables for segmenting the athletic shoe market, but is especially interested in consumer patterns of living as expressed through activities, interests, and opinions including the ways people spend time, the extent of their interaction with others, and their general outlook on life. Nike is currently evaluating _______.

lifestyles

perception

personality

learning

motivation

12.Assessment question

REI targets individuals who love and appreciate the outdoors. It therefore appeals to customers who have a(n) _______ as outdoor enthusiasts.

role

motivation

self-concept

attitude

social class

13.Assessment question

Cholula Hot Sauce, a Mexican made chili-based sauce brand, is introducing a new hot sauce flavor and wants to use its owners’ understanding of its target market to promote the sauce successfully. The company is sampling the new sauce at a number of supermarkets in Texas, where there are multiple market segments likely to enjoy hot sauces. Cholula’s goal is to give customers experience with the new hot sauce flavor to reduce their risk of purchase and thereby increase trial purchases. The tactic that Cholula is using is called _______.

molding

shaping

motivating

closure

framing

14.Assessment question

Companies often use celebrities popular with their target market to promote their products. In this case, the celebrities represent a(n) _______.

subculture

membership reference group

dissociative reference group

aspirational reference group

social class

15.Assessment question

How can consumers reduce their risk of buying an unknown product?

Attempting to reduce selective distortion

Asking a family member

Looking for recommendations on social media

Seeing if other people in the same social class buy it

Offering free samples and coupons

16.Assessment question

Using fraudulently obtained credit cards, debit cards, checks, or bank accounts and making false insurance claims are examples of _______.

routinized response behavior

consideration behavior

consumer misbehavior

cognitive dissonance

consumer fraud

17.Assessment question

Kaya bought a $300 dress for homecoming. She wore it to homecoming and had a great time. However, afterwards she decided she did not want the dress. She returned it for a full refund. The cashier did not ask about the missing tags. This is an example of ______.

marketer fraud

consumer buying behavior

consumer fraud

consumer misbehavior

cognitive dissonance

18.Assessment question

Scenario 6.1.

Aleksi has made the decision that it is time to purchase a condo. His apartment is too small, and he is tired of paying rent. His price range is between $200,000 and $250,000. He would like to purchase a condo that is within a half hour of his work. With these criteria set in mind, he sets out to search for his ideal home.

Refer to Scenario 6.1. What type of decision making will this purchase most likely involve?

Consideration behavior

Extended decision making

Limited decision making

Extended search behavior

Routinized response behavior

19.Assessment question

Scenario 6.1.

Refer to Scenario 6.1. Suppose that after an extensive search Aleksi has narrowed down his decision to three condos. All fall within his price range, and all of them are in a desirable location in town. These three condos are now a part of Aleksi’s _______.

consideration set

perceptual criteria

evaluative criteria

enduring involvement

self-concept

20.Assessment question

Scenario 6.2.

Catalina is a mother of three children and works as a financial analyst for a large banking firm. In her free time, Catalina is usually looking through parenting blogs or reading books about how to be a better parent. One person she really admires is parenting expert Rochelle Davis. Rochelle has written a best-selling parenting book and maintains a popular blog. She stays up to date on current trends and is the go-to person for new products geared toward children. Catalina views Rochelle as a role model and wants to be like her.

Refer to Scenario 6.2. Rochelle Davis' blog is so popular that a local children’s toy company regularly sends her product samples in the hopes she will give them a positive review on her blog. Rochelle is most likely which of the following for the local children’s toy company?

Reference group

Opinion leader

Buying decision maker

Wife dominant decision maker

Perceptual influencer

21.Assessment question

Scenario 6.2.

Refer to Scenario 6.2. Catalina greatly admires Rochelle Davis and those like her. She views them as a(n) _______ that she wants to emulate and be like.

role

dissociative reference group

membership reference group

aspirational reference group

opinion leader

22.Assessment question

Scenario 6.2.

Refer to Scenario 6.2. Catalina’s husband tends to defer to Catalina for most family purchase decisions, especially knowing how much effort she puts into researching them. Although he tends to make purchase decisions related to items that he wants to buy for himself, Catalina makes the remaining purchase decisions for herself, her children, and the household in general. When it comes to purchase decisions, Catalina’s family is _______.

family dominant

husband dominant

syncratic

wife dominant

autonomic

23.Assessment question

Scenario 6.2.

Refer to Scenario 6.2. Suppose Catalina is out shopping for children’s clothes with one of her friends. When Catalina mentions how much she admires Rochelle Davis, her friend replies that she heard Rochelle is being investigated for allegedly plagiarizing some of her books. Catalina tells her friend she must be mistaken as Rochelle has too much integrity to do such a thing. She argues that other people are just jealous because their books are not as popular. This is an example of which of the following?

Learning

Selective retention

Personality

Motivation

Selective distortion

24.Assessment question

Scenario 6.3.

Jiao just got the news that she got passed over for a job she wanted. Now she is at a shopping center looking for a gift for her best friend’s birthday. She is in a bad mood and does not want to be there. It’s the holiday season, so the store is very crowded. After searching for a long time at a jewelry store, she finally finds the necklace her friend wanted. Jiao thinks the necklace is too expensive and is not even that attractive, but she buys it because she knows her best friend likes it.

Refer to Scenario 6.3. Which situational factor most contributed to Jiao’s purchase?

Physical surroundings

Reason for purchase

Social surroundings

Buyer’s mood

Time dimension

25.Assessment question

Scenario 6.3.

Refer to Scenario 6.3. Jiao wants to stop by her favorite bookstore before it closes in 15 minutes. However, because she is thirsty, she decides to stop quickly for a drink. She heads over to Boba Tea but notices the line is very long. She notices there is hardly anyone in the Starbucks line and decides to get a latte instead, even though she would have preferred a tea. Which situational factor most contributed to Jiao’s purchase?

Social surroundings

Reason for purchase

Physical surroundings

Buyer’s mood

Time dimension

Chapter 07 Assignment: Business Markets and Buying Behavior

1.Assessment question

A janitorial service firm purchases Clorox supplies to use in cleaning places like schools and office buildings. This type of customer would be an example of what type of market for Clorox?

Reseller

Government

Consumer

Producer

Institutional

2.Assessment question

Which of the following companies would be most likely to target government markets?

Apple

Lockheed Martin

Staples

JPMorgan Chase & Co.

John Deere

3.Assessment question

Gorton’s buys large amounts of fish to use in its frozen dinners and dinner components. Gorton’s belongs in which of the following markets?

Government market

Institutional market

Producer market

Reseller market

B2C market

4.Assessment question

What can industry classification systems do for the marketer?

Provide an automatic guide that will allow marketers to determine the profit potential of customers with a high degree of accuracy

Manage databases of business customers with high profit potential

Separate various businesses into different categories based on whether they offer business or consumer goods and services

Help marketers locate the buying center and the major influencers in organizations with high profit potential

Categorize organizations consistently into groups based on such factors as the types of goods and services provided

5.Assessment question

Midwestern Sealants & Coatings wants to expand into new geographic areas within the U.S. to find more customers for its sealants and industrial paints. To identify prospects, it needs to locate potential business customers by industry classification numbers, determine their locations, and develop lists of potential customers by desired geographic area and identify prospects’ name, location, sales volume, number of employees, type of products handled, names of chief executives, and other pertinent information. Where would you suggest Midwestern turn?

The United States–Mexico–Canada Agreement (USMCA)

The North American Industry Classification System (NAICS)

Commercial industrial directories, such as Standard & Poor’s Register and Dun & Bradstreet’s Million Dollar Database

The International Standard Industrial Classification (ISIC) system

A commercial data service such as Dun & Bradstreet

6.Assessment question

Which of the following is not one of the ways that business transactions differ from consumer transactions?

Orders by business customers tend to be much larger than individual consumer sales.

Purchasing decisions are often made by a committee.

Discussions and negotiations associated with business purchases can require considerable marketing time and selling effort.

Suppliers of large, expensive, or complex goods often must sell products in large quantities to make profits.

Orders are frequently small and inexpensive.

7.Assessment question

ACE Corp. has ordered fasteners from Titan Fittings several times before, but now it would like Titan to offer a lower per-unit price in exchange for a larger order. ACE is using which of the following types of business purchases?

New-rebuy purchase

Modified rebuy purchase

Straight rebuy purchase

Modified-task purchase

New-task purchase

8.Assessment question

Which of the following is an example of derived demand?

A decrease in the prices of oranges has led to more orders of orange juice.

An increase in windshields has led to an increase in windshield wipers.

An increase in airfare prices has not had much of an effect on demand for business travelers.

An increase in coffee drinking is prompting coffee shops to order more coffee grinders.

Sales for bathing suits jump in the summer, especially in hotter regions.

9.Assessment question

Which of the following are most likely to face joint demand?

Spark plugs

Pets

Jewelry

Tables

Apples

10.Assessment question

Suppose the government wants to hire a firm to build a new road. What method of business buying will it most likely use?

Inspection

Sampling

Sole sourcing

Description

Negotiation

11.Assessment question

The sales department of a consumer products organization realized that its rivals are adopting new customer relationship management software to keep better track of their prospects. The director of the sales department decided it would also purchase the CRM software to keep up with its rivals. This is an example of what type of force affecting business buying behavior?

Interdependent forces

Organizational forces

Consumer forces

Individual forces

Environmental forces

12.Assessment question

Purchasing agents at IniTech are looking in company files, trade directories, and websites, contacting suppliers for information, soliciting proposals from known vendors, and examining various online and print publications. They are in which of the following stages of the buying decision process?

Selecting the product to be purchased and the supplier

Searching for and evaluating potential products and suppliers

Evaluating the supplier’s and product’s performance by comparing it with specifications

Developing product specifications

Recognizing the problem

13.Assessment question

Companies like Target and JCPenney sometimes participate in a(n) _______ for the retail industry, which acts as a neutral third party and charges a fee for providing a trading forum.

online auction

private B2B exchange

buying center

independent B2B exchange

electronic supply chain

14.Assessment question

Walmart implemented an online system for its supply chain called RetailLink. RetailLink is a secure system that permits all suppliers and others to facilitate exchanges and share information on purchasing, inventory, negotiating, and more. It also allows its suppliers to get information on inventory levels and sales from different Walmart stores. This is an example of a(n) _______.

electronic supply chain

public B2B exchange

private B2B exchange

independent B2B exchange

online auction

15.Assessment question

FedBid is used by businesses that want to supply goods and services to government agencies. When an agency needs a product, it invites businesses to bid to supply the specified good or service in competition with each other, and the lowest bidder wins the contract to supply the product. FedBid is a(n) _______.

electronic supply chain

private B2B exchange

independent B2B exchange

reverse auction

corporate website

16.Assessment question

Scenario 7.1.

Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts the supplier completely. Whenever Levi needs to order new inventory from his supplier, he sends them information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough they are. Finding defective products is so rare that Levi doesn’t even bother examining the shipment, other than to make sure the products adhere to the standards specified.

Refer to Scenario 7.1. Levi is operating in which type of market?

Institutional

Reseller

Government

Consumer

Producer

17.Assessment question

Scenario 7.1.

Refer to Scenario 7.1. Which method of buying does Levi use?

Sole sourcing

Sampling

Inspection

Description

Negotiation

18.Assessment question

Scenario 7.1.

Refer to Scenario 7.1. What type of factors likely influenced Levi as the chief decision maker for his company to remain with the supplier?

Competitive factors

Individual factors

Environmental factors

Organizational factors

Interpersonal factors

19.Assessment question

Scenario 7.1.

Refer to Scenario 7.1. Suppose a church representative stops by looking for a coffee maker. They want to buy the coffee maker with church funds and use it to brew fresh coffee for church visitors. They are a part of which market?

Reseller

Producer

Government

Institutional

Consumer

20.Assessment question

Scenario 7.1.

Refer to Scenario 7.1. Levi is getting ready to order another shipment of frying pans. However, he wants to switch from cast iron to aluminum. What type of purchase is Levi using?

Differential purchase

New-task purchase

Straight rebuy purchase

New-rebuy purchase

Modified rebuy purchase

21.Assessment question

Scenario 7.1.

Refer to Scenario 7.1. Levi regularly orders office and shipping supplies from Amazon Business as the prices are reasonable and the products ship to him within two to three days. In this case Amazon Business is a(n) _______.

B2B e-commerce site

electronic supply chain

corporate website

retail website

online auction

22.Assessment question

Scenario 7.2.

Christina manages the accounting department of a consumer electronics firm. She recently sent in a request to purchase 50 new computers for her accounting staff because the computers they are working on are outdated. Miguel was given the task of choosing the supplier and purchasing the products. Since Miguel is not as knowledgeable about computers, he turns to Natalia, who works in IT, for advice. Natalia knows all about the latest computers, systems, and software. With Natalia’s help, Miguel looks at the alternatives and selects Dell as their supplier.

Refer to Scenario 7.2. Assume that Lenovo wants to reach the deciders and purchasers in Christina’s organization because it would like to supply the next order of computers. Before it can reach Miguel, however, Lenovo must first schedule an appointment with his receptionist, who has worked at the firm for 20 years. It would be wise for Lenovo not to underestimate the receptionist as they most likely act as a(n) _______.

decision maker

user

gatekeeper

decider

influencer

23.Assessment question

Scenario 7.2.

Refer to Scenario 7.2. Miguel is the _______ in the buying center, while Natalia acts as a(n) _______.

gatekeeper; influencer

buyer; influencer

decider; gatekeeper

user; buyer

buyer; decider

24.Assessment question

Scenario 7.2.

Refer to Scenario 7.2. In this example of a buying center, which roles is Miguel occupying?

Decider and buyer

User and buyer

Decider and gatekeeper

Buyer and influencer

Gatekeeper and influencer

25.Assessment question

Scenario 7.2.

Refer to Scenario 7.2. After Miguel chooses Dell as the supplier, Christina orders 50 computers from Dell.com, which offers special access through a password-protected portal to B2B customers where they can track orders, see past orders, and access relevant information. In this case Dell.com is a(n) _______.

corporate website

retail website

electronic supply chain

online auction

B2B e-commerce site

Chapter 08 Assignment: Reaching Global Markets

1.Assessment question

_______ involves developing and performing marketing activities across national boundaries.

Globalization

Multinational marketing

Outsourcing

Worldwide marketing

International marketing

2.Assessment question

Companies from Malaysia were accused of selling clear float glass, which is used in cars, to companies in India at incredibly low rates. These rates were considered unfair because the price was lower in the foreign market than it was in the domestic market. This practice is known as _______.

offshore outsourcing

dumping

international marketing

cultural relativism

offshoring

3.Assessment question

A robotics company hires a marketing firm to take care of its social media presence. This is an example of _______.

offshoring

exporting

outsourcing

licensing

offshore outsourcing

4.Assessment question

Scenario 8.1.

Logitech is a computer peripherals company that was founded in Switzerland in 1981. From the outset, the founders realized they would need to expand internationally if they wanted to compete in the market. Soon it had offices and/or factories in Switzerland, Taiwan, China, the United States, and Ireland. Its corporate headquarters is in Silicon Valley, but it maintains a factory in China. Eight years after it was founded, Logitech had captured 30 percent of the market share in the computer peripherals industry.

Refer to Scenario 8.1. Logitech would most likely be categorized as a _______ firm.

born global

joint venture

divisionalized

domestic

matrix

5.Assessment question

Scenario 8.1.

Refer to Scenario 8.1. Logitech has many of its products built in China using third parties. However, it has also built its own factories to protect some of its manufacturing trade secrets. Logitech uses a combination of _______ and _______ when manufacturing products.

offshoring; joint venture

strategic alliance; outsourcing

direct ownership; licensing

contract manufacturing; direct ownership

contract manufacturing; licensing

6.Assessment question

Nineteen airlines have partnered, including Air France, Delta, Czech Airlines, Air Europa, China Eastern, and Kenya Airways, to form SkyTeam. SkyTeam was developed to increase connectivity to destinations worldwide. Each airline operates as its own firm—SkyTeam is meant to increase opportunities for all firms involved. In fact, many airlines serve the same areas. This partnership is most likely a(n) _______.

strategic alliance

franchise agreement

internationally integrated structure

joint venture

trading company

7.Assessment question

Estonia is a member of this trading bloc, _______, which has a shared currency across most of its countries. Additionally, many of the governments in this trading bloc are similar in form.

the European Union (EU)

the Association of Southeast Asian Nations (ASEAN)

the Asia-Pacific Economic Cooperation (APEC)

the Southern Common Market (MERCOSUR)

the Dominican Republic–Central American Free Trade Agreement (CAFTA-DR)

8.Assessment question

Malaysia and Laos are members of the same trading bloc that promotes trade and economic integration among member nations in the region. One distinguishing characteristic of this trading bloc is that it will not support fully free labor flows or a common currency. Which trading bloc is this likely to be?

The Asia-Pacific Economic Cooperation (APEC)

The Dominican Republic–Central American Free Trade Agreement (CAFTA-DR)

The Association of Southeast Asian Nations (ASEAN)

The Southern Common Market (MERCOSUR)

The World Trade Organization (WTO)

9.Assessment question

In Argentina a currency crisis led the government to mandate that companies needed permission from the central bank to purchase foreign currency and exporters needed to liquidate any foreign exchange earnings within five days. This is an example of a(n) _______.

embargo

self-reference criterion

quota

exchange control

import tariff

10.Assessment question

Which of the following represents a sociocultural barrier?

Lower literacy rates in Africa mean that much of the packaged food sold in stores has pictures on their labels of what is inside the package. Several consumers avoided buying Gerber baby food because they thought the drawing of the baby on the label meant it was made of baby meat.

An international retailer wants to obtain a zoning permit in Mexico. Unfortunately, the process will take a long time, and the firm wants to start constructing a building soon. A government official says that for a one-time payment they will make sure the permit is approved within the next month.

General Motors wanted to sell its electric vehicles in China. However, China has laws requiring foreign firms who want to build and sell electric vehicles in the country to partner with a domestic firm. General Motors therefore entered into a joint venture.

In Mozambique a currency crisis led the government to mandate that citizens from Mozambique could only spend up to $13,600 on their credit or debit cards when shopping abroad.

Due to Russia’s involvement in Ukraine, Europe instituted sanctions against the country. In response, Russia placed sanctions on European imports such as agricultural products. This led to a massive oversupply of agricultural goods in Europe.

11.Assessment question

Which of the following is most likely to be a born global firm?

Starbucks

Kate Spade

Skype

Walmart

H&R Block

12.Assessment question

Deja was hired as the international marketing manager of a personal care company that plans to expand internationally. She has been tasked with standardizing the company’s practices across all countries. Which of the following would likely be the hardest for Deja to standardize?

Branding

Labeling

Product characteristics

Media allocation

Packaging

13.Assessment question

Which of the following differs from other international trade alliances in its commitment to facilitating business and its practice of allowing the business/private sector to participate in a wide range of activities?

The Asia-Pacific Economic Cooperation (APEC)

The Association of Southeast Asian Nations (ASEAN)

The United States–Mexico–Canada Agreement (USMCA)

The European Union (EU)

The World Trade Organization (WTO)

14.Assessment question

Switzerland is much smaller than the United States but its population density is much greater. Although Switzerland’s GDP is much smaller than the United States’ GDP, its _______ is slightly higher.

disposable income

GDP

population

GDP per capita

export cost

15.Assessment question

Stephanie works for a company that manufactures purses and is considering employing a trading company to reduce the risk of getting involved in international marketing. What is one of the benefits of using a trading company?

It handles all manufacturing services.

It develops advertising campaigns for the global firm.

It negotiates with governments to get the best deals.

It makes it easier for global companies to form partnerships with domestic firms.

It facilitates all marketing aspects of a transaction.

16.Assessment question

Juan owns a sporting goods company based in Mexico City. He wants to sell his products in other countries, so he researches USMCA and finds strong support for choosing either the United States or Canada to begin exporting products. Juan likely noticed which of the following advantages of the free trade agreement?

Juan faces less competition from other countries if he enters into the United States and Canada because of lower prices.

Tariffs have been virtually eliminated on goods produced and traded among Canada, Mexico, and the United States.

The cultures among the three countries are so similar that no modifications to the marketing mix will be necessary.

USMCA has virtually eliminated Japanese exporting and importing into Mexico, getting rid of a major competitor.

USMCA has ensured the political stability of the nations involved, making trading easier.

17.Assessment question

Crisanto’s company just started exporting cheddar cheese to the United States. Unlike some of the other countries that it trades with, there is a set limit to how much cheddar cheese it can export to the United States without paying higher tariff rates. Crisanto is confused about this and asks his manager about it. His manager replies that the United States has a(n) _______ on cheddar cheese.

exchange control

quota

export tariff

embargo

negative balance of trade

18.Assessment question

Global firms used advanced _______ to target markets, develop social media, track products in the supply chain, and enable robots and drones to perform tasks that provide customer service.

exchange controls

analytics

outsourcing

blockchain technology

wireless phone technology

19.Assessment question

Starbucks offers _______ agreements for many of its stores which include equipment, training, and support. In this type of agreement, Starbucks receives commissions or royalties on sales.

direct investment

strategic alliance

outsourcing

licensing

exporting

20.Assessment question

Spotify is a digital music service based in Sweden. Spotify was created when music industry revenue was in decline. From the start, Spotify intended to be an international music streaming service, securing agreements with the four largest U.S. record labels. Spotify quickly ramped up international expansion. Spotify would most likely be categorized as a(n) _______ firm.

born global

importing

direct ownership

globalization

multinational enterprise

21.Assessment question

Nike shoes are standardized worldwide. This is likely an example of what?

Customization

Cultural relativism

Outsourcing

Multinational marketing

Globalization

22.Assessment question

A new social media network based in Sweden, where social media and internet usage is very high, decides to expand its footprint. It already saturated countries like Australia, the United States, Canada, and Spain. The company briefly considered expanding into Egypt but decided against it when it learned smartphone penetration is very low in Egypt. What environmental force is impacting this marketing decision?

Competitive forces

Political forces

Economic forces

Ethical forces

Technological forces

23.Assessment question

Because South Africans are used to hot porridge for breakfast, many of them boiled Kellogg’s corn flakes and ruined the cereal. To adapt, Kellogg’s reformulated the product and released Corn Flakes Instant Porridge to the South African market. What environmental force did Kellogg’s overcome?

Regulatory forces

Sociocultural forces

Competitive forces

Economic forces

Technological forces

24.Assessment question

In the EU, some people claim that Google restricts advertisements sold by other companies and pre-installs its search engine as a default on mobile devices. This concern is most likely related to _______.

sociocultural forces

economic forces

competitive forces

technological forces

political forces

25.Assessment question

Namjoo is launching an online marketplace for lodging. Her investors say she should focus on local business, but she believes that a global presence generates opportunities for creating value. What is one of those opportunities?

To conduct marketing research

To minimize the transfer of knowledge across locations

To work within the constraint of the international marketing environment

To mine optimal locations for activities and resources

To automatically result in a global competitive advantage

Chapter 09 Assignment: Digital Marketing and Social Networking

1.Assessment question

Scenario 9.1.

Iftikhar works for a marketing analytics company. Iftikhar has turned to social media to spread the word about a new ebook that company has published about the benefits of mobile marketing. He created a landing page on the company’s website dedicated to the ebook and encourages users to ask questions.

Refer to Scenario 9.1. Iftikhar develops a short informational video describing the benefits of mobile marketing. He wants to put it on a video sharing site that will reach as many people as possible. He should probably upload it on _______.

Twitter

YouTube

Twitch

a podcast

Vimeo

2.Assessment question

Amy is a renowned food blogger. She is sent a free mixer from KitchenAid and is paid to promote the brand on social media. As is required by the _______, Amy clearly discloses her relationship with the brand by using #ad on all her content.

National Advertising Review Board (NARB)

National Advertising Division (NAD)

Federal Trade Commission (FTC)

Digital Advertising Alliance (DAA)

Department of Justice (DOJ)

3.Assessment question

Scenario 9.1.

Refer to Scenario 9.1. On the landing page, Iftikhar encourages users to ask questions and provide their input. He also provides contact information for his firm if users are interested in marketing analytics services. Iftikhar actively monitors the site so he can immediately answer questions or comments that internet users pose. He wants users to feel comfortable expressing their needs directly. This involves which characteristic of digital marketing?

Control

Accessibility

Connectivity

Interactivity

Addressability

4.Assessment question

Scenario 9.1.

Refer to Scenario 9.1. Suppose Iftikhar decides to develop a web-based journal in which writers can editorialize and interact with other internet users. This would be an example of a _______.

wiki

social network

blog

podcast

widget

5.Assessment question

Waylon works for a company that produces temporary tattoos. His company wants to reach a young, highly engaged target market. His company currently has a profile on every major social media platform, but Waylon has been instructed to invest more resources into one platform. Which platform should Waylon focus on?

YouTube

Snapchat

Facebook

6.Assessment question

A weather news channel launched a small bit of software users could download to their computer. This software would provide continual news updates about the weather forecast, including storm alerts, and links users directly to the company’s homepage. This is most likely which of the following?

Blog

Widget

Podcast

QR code

Wiki

7.Assessment question

Noel is concerned that she may be at risk for fraudulent activity based on her web activity. She decided to rethink the way she handles her privacy online. What is probably the best way for consumers to combat fraudulent activities?

Stopping purchasing items over the internet

Ensuring that you opt out of internet tracking

Refraining from giving out personal information unless the site is legitimate

Using different passwords for each different site

Hiring a fraud-detecting organization to look for fraudulent transactions

8.Assessment question

Tamesha finds a dining room table on Wayfair that she is interested in purchasing. After a quick search, she finds a similar dining room table available on another furniture website, Houzz. The items are the same color and are made of the same materials. The websites even have similar free shipping offers. Tamesha chooses to purchase from Houzz because the price is slightly lower. Why must online marketers strive to differentiate their products from competitors—even more so than they might have to do with more traditional marketing channels?

Online promotion has become so common that marketers must use unique characteristics of the products to grab users’ attention.

Nonprice competition has become much more important in attracting consumers than price competition.

Online distribution channels end up costing the customer more, requiring companies to differentiate their products to show their value.

Products must be differentiated in order to ensure that they differ from the types of products sold in retail stores.

The consumer now has unprecedented access to online pricing information, so differentiation is necessary to remain competitive.

9.Assessment question

Zynga creates games that are downloaded to mobile devices. What is this type of software called?

A social network

A widget

A podcast

Mobile marketing

A mobile application (app)

10.Assessment question

What is an example of a product that is accessible only on the internet?

Pedego Electric Bikes manufactures and sells ebikes online and at its retail locations.

Fabletics sells women’s leggings through its online subscription service or in its brick-and-mortar stores.

At Home is a home décor retailer that sells home accessories exclusively in its big box stores.

Sephora offers custom makeup applications.

Steam provides gamers access to thousands of video games for PC and Mac. The games are downloaded from Steam to the user’s computer.

11.Assessment question

Several college students are caught illegally downloading music from their dorm rooms. The students face a peer review board, and only one of the illegal downloaders is punished. Consumers tend to view certain behaviors as less ethically acceptable regarding illegally downloading protected content from the internet. Which behavior do you think motivated the student who received a punishment?

Downloading content just for fun

Downloading content because they can’t afford it

Downloading content to see if they can get away with it

Downloading content because their friends do it

Downloading content for personal gain

12.Assessment question

A company that produces blood glucose meters created an online forum where people can interact and ask questions about the company’s products. Luciana loves to participate in online forums and is a long-time user of the company’s products, so she joins and often reads and comments on other people’s posts. This ability Luciana has to communicate with other consumers and the company through this online forum is an example of what characteristic?

Accessibility

Connectivity

Control

Addressability

Relationship marketing

13.Assessment question

Yvone is the new social media manager for a company that has never had a social media presence in the past. Her first project is to create a social media strategy. Which of the following should Yvone embed at the onset of her social media strategy that can allow almost real-time measurement and evaluation?

Click-through rate (CTR)

Key Performance Indicators (KPIs)

Prime Performance Analytics (PPAs)

Google Analytics

Sales analysis

14.Assessment question

Which of the following would be an example of digital media that marketers can use for promotional purposes?

Smart watch

Outside of an electric bus

Blu-ray player

Landline phone

Newspaper

15.Assessment question

Scenario 9.2.

Osvaldo works for a firm that wants to use digital networking sites such as Facebook, blogs, review sites, and more to target consumers on a global scale. Recently, his firm has expanded into a new foreign market. Osvaldo has looked at the market and has found that the majority of the population is active on the internet. He is looking for the least expensive way to target these customers.

Refer to Scenario 9.2. If Osvaldo were to have cookies installed on the users’ computers, they would be able to detect when the user revisits the site. This demonstrates which of the following characteristics of digital marketing?

Accessibility

Control

Interactivity

Addressability

Connectivity

16.Assessment question

Scenario 9.2.

Refer to Scenario 9.2. Suppose Osvaldo wants to attract more users to his company’s products. He decides to do two things. First, he develops an online contest and posts it on the corporate blog and Facebook page. He believes the contest will encourage consumers in that country to spread the word. Secondly, he would like to offer them a temporary discount on products purchased within the next week. Osvaldo is focusing on the _______ and _______ aspects of the e-marketing mix.

price; product

promotion; product

promotion; distribution

promotion; price

distribution; promotion

17.Assessment question

Google has encountered many data privacy issues internationally. What are Web advertisers, such as Google, attempting to do in order to prevent regulation that would limit the information they can collect on users?

They are attempting to engage in self-regulation.

They are reducing their data collection practices.

They are suing the government for the right to collect this data.

They are working with regulators to develop regulations that protect consumers.

They are refusing to collect any information unless users give permission.

18.Assessment question

Instagram uses historical user data with statistical techniques to find answers and solutions to address future decisions. For example, when people like photos captioned with #dogsofinstagram, they are likely to be served additional organic content about dogs. What is Instagram using in this case?

Facebook Ads Manager

Click-through rate (CTR)

Key Performance Indicators (KPIs)

Predictive analytics

Google Analytics

19.Assessment question

Rebecca is starting an online business selling organic dog treats. She is interested in implementing something that will monitor her website and allow her to analyze the performance of her website, gathering valid metrics and understanding the way the strategy meets performance standards or underperforms based on expectations. For example, she wants to see her organic search traffic over time. What should Rebecca implement?

Facebook Ads Manager

Mobile marketing

Predictive analytics

Key Performance Indicators (KPIs)

Google Analytics

20.Assessment question

Scenario 9.3.

Foster works for a company that sells Dungeons and Dragons miniatures. He was tasked with improving the performance of the company’s website and increasing web sales. Several months ago, Foster implemented Google Analytics to monitor the company’s web traffic.

Refer to Scenario 9.3. Foster is interested to know which products have the most views. Which section should he refer to in his Google Analytics account?

Conversions

Acquisition

Real-time

Audience

Behavior

21.Assessment question

Scenario 9.3.

Refer to Scenario 9.3. Foster creates a popup window that asks for users to sign up for his company’s email newsletter. He refers to the _______ section to see how many people have signed up.

real-time

audience

behavior

conversions

acquisition

22.Assessment question

Volition, a skin care and cosmetics company, crowdsources its new product ideas from its customers. Its community votes online whether the idea should be produced. Which variable of the marketing mix is impacted by digital media in this case?

Omnichannel

Distribution

Pricing

Product

Promotion

23.Assessment question

Amazon has expanded into door-to-door deliveries of groceries. Users can order groceries on Amazon’s website in select markets and have groceries delivered to their door. Which variable of the marketing mix is impacted by digital media in this case?

Omnichannel

Product

Distribution

Pricing

Promotion

24.Assessment question

Many online retailers, such as Birchbox, Blue Nile, and Warby Parker, have established a presence in the traditional brick-and-mortar market to create a physical presence and increase awareness. This trend is a result of _______ retailing, a cross-channel strategy where retailers offer a seamless experience on mobile, desktop, or traditional retail spaces.

pricing

promotion

product

omnichannel

distribution

25.Assessment question

Jackson has been asked to recruit a marketing professional to be responsible for the strategic process of pricing, distributing, and promoting products, and discovering the desires of customers using digital media and digital marketing. The candidates need experience in not just the internet but also mobile phones, banner ads, digital outdoor marketing, and social networks. Jackson decides to post the job description with the job title _______ manager.

e-marketing

digital marketing

digital media

omnichannel

mobile marketing

Chapter 10 Assignment: Product, Branding, and Packaging Concepts

1.Assessment question

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

Hewlett-Packard

Johnson & Johnson

Disney World

McDonald’s

H&R Block

2.Assessment question

Ahmed 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 one because it comes in a souvenir cup that he gets to keep. The souvenir cup represents which of the following?

Core product

Experiential benefits

Supplemental features

Brand extensions

Product lines

3.Assessment question

The Red Cross raises money to help people survive natural and manmade disasters. The Red Cross can best be described as a(n) _______.

idea

specialty product

good

service

unsought product

4.Assessment question

Huy Fong is buying peppers and vinegar to make its iconic Sriracha sauce. For Huy Fong, these are best described as _______.

process materials

component parts

raw materials

accessory equipment

installations

5.Assessment question

Which of the following would be an example of accessory equipment?

Pencils

Iron ore

Calculator

Printing press

Coca-Cola syrup

6.Assessment question

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?

Brand extensions

Product items

Product height

Depth of product mix

Width of product mix

7.Assessment question

Belle Meade sells different kinds of wine. Under its white wine product line, it sells four products—Carriage House White, Celebration Riesling, Race Day White 2016, and Lady’s Cuvee. This is an example of _______.

product items

depth of product mix

width of product mix

product height

brand extensions

8.Assessment question

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

brand extension

product mix

product item

specialty product

9.Assessment question

Sulbha 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, Sulbha is willing to take the risk. She needs to be the first one to own the newest products! Her cousin Melanie, however, is generally suspicious about new products. For instance, when the iPad first came out, Melanie was highly skeptical. Even when Sulbha assured her that it was a good product, Melanie was not certain. Finally, after a few years and lots of encouragement from Sulbha, Melanie decided to purchase the newest iPad. Sulbha is most likely in the _______ category, while Melanie is most likely in the _______ category of product adopters.

innovator; early majority

early adopter; laggard

early adopter; late majority

innovator; late majority

early majority; laggard

10.Assessment question

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

Seventh Generation

McDonald’s

Procter & Gamble

Apple Inc.

Ford Motor

11.Assessment question

The Double-A of American Airlines, the peacock of NBC, and the apple with a missing bite of Apple are examples of a _______.

brand mark

trade name

trademark

brand equity

brand name

12.Assessment question

When Dyson, best known for its revolutionary vacuum cleaner, introduced the Dyson Supersonic hair dryer, it used _______.

brand equity

brand licensing

individual branding

line extension

brand extension

13.Assessment question

MultiTech Corp. has decided that all of its products’ packages should be similar. Multitech is using which of the following?

Family branding

Private distributor packaging

Family packaging

Co-branding

Brand extension

14.Assessment question

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

identical; improved handling

category-consistent; secondary use

improved handling; multiple

category-consistent; innovative

multiple; innovative

15.Assessment question

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 _______.

reusable packaging

individual packaging

multiple packaging

family packaging

single-use packaging

16.Assessment question

Scenario 10.1.

Buckyballs was marketed as a 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. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets.

Refer to Scenario 10.1. How should Buckyballs classified?

Service

Component product

Business product

Consumer product

Idea

17.Assessment question

Scenario 10.1.

Refer to Scenario 10.1. "Keep Away from Children" was placed on the label of Buckyballs packaging for _______ purposes.

safety

identification

promotional

informational

convenience

18.Assessment question

Scenario 10.1.

Refer to Scenario 10.1. What type of brand was Buckyballs?

Store brand

Manufacturer brand

Generic brand

Private distributor brand

Dealer brand

19.Assessment question

Scenario 10.2.

The Meta Quest 3 product is a virtual reality headset released in 2023 and is used for gaming, entertainment, and fitness. It is a successor to the Quest 2. Retailers including Best Buy sell the Meta Quest 3 for approximately $500. Sales are increasing steadily for the Meta Quest 3 and its competitors—the HTC VIVE, PlayStation VR2, and several others.

Refer to Scenario 10.2. Cam is looking to replace their older VR headset. They want to purchase the Meta Quest 3, but if it isn’t available Cam would purchase a different brand. Which level of brand loyalty does Cam likely have for the Meta Quest 3?

Brand preference

Brand recognition

Brand loyalty

Brand insistence

Brand equity

20.Assessment question

Scenario 10.2.

The Meta Quest 3 product is a virtual reality headset released in 2023 and is used for gaming, entertainment, and fitness. It is a successor to the Quest 2. Retailers including Best Buy sell the Meta Quest 3 for approximately $500. Sales are increasing rapidly for the Meta Quest 3 and its competitors—the HTC VIVE, PlayStation VR2, and several others.

Refer to Scenario 10.2. In which stage of the product life cycle is the Meta Quest 3 likely to be?

Prosperity stage

Introduction stage

Maturity stage

Growth stage

Decline stage

21.Assessment question

Scenario 10.2.

The Meta Quest 3 product is a virtual reality headset released in 2023 and is used for gaming, entertainment, and fitness. It is a successor to the Quest 2. Retailers including Best Buy sell the Meta Quest 3 for approximately $500. Sales are increasing rapidly for the Meta Quest 3 and its competitors—the HTC VIVE, PlayStation VR2, and several others.

Refer to Scenario 10.2. What type of consumer product is the Meta Quest 3?

Shopping

Unsought

Accessory equipment

Convenience

Specialty

22.Assessment question

Scenario 10.3.

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 and more concentrated than liquid detergent. 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 10.3. 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?

Category-consistent packaging

Single-use packaging

Innovative

Secondary use

Handling improved packaging

23.Assessment question

Scenario 10.3.

Refer to Scenario 10.3. Tide holds a large market share in the laundry detergent industry. However, Tide has been on the market for many years. Procter & Gamble was hoping that its 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?

Growth stage

Maturity stage

Introduction stage

Prosperity stage

Decline stage

24.Assessment question

Scenario 10.3.

Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The colorful pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. 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 10.3. Tide Pods would most likely be classified as a(n) _______ product. However, suppose a hotel uses Tide Pods to wash its sheets and towels. In this case, Tide Pods would be classified as _______.

unsought; accessory equipment

convenience; MRO supplies

shopping; MRO supplies

unsought; process materials

convenience; process materials

25.Assessment question

Scenario 10.3.

Refer to Scenario 11.3. 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

Trial

Interest

Awareness

Adoption

Chapter 11 Assignment: Developing and Managing Goods and Services

1.Assessment question

When Cheetos developed a new “cheesy” flavor, Cheddar Jalapeno Crunchy Cheetos, it was an example of a _______.

concept testing

product line

product modification

brand extension

line extension

2.Assessment question

When automakers started installing Bluetooth in cars, this was an example of _______.

repositioning modification

quality modification

aesthetic modification

product line modification

functional modification

3.Assessment question

The Amazon Echo is a voice-enabled smart speaker. It has been in development since 2010. It was introduced in 2014 but only to Amazon Prime members for purchase. Amazon expanded in 2015 and became the Echo available in stores nationwide. What stage in the product development process was Amazon Echo in 2015?

Commercialization

Screening

Business analysis

Test marketing

Product development

4.Assessment question

Method is a nontoxic, biodegradable cleaning supplies company. Suppose one of the employees on the production team at Method got an idea for the company to expand into biodegradable plastic wrap. He has heard about new technologies that could make this possible. Method has the resources to invest in this new product, but after considering it, the production managers nixed the idea because it did not fit well with its product mix. What stage of the product development process was Method in?

Business analysis

Commercialization

Screening

Test marketing

Product development

5.Assessment question

Pinnacle Corp. is going through the new product development process and is selecting ideas with the greatest potential for development for further review. Pinnacle is in which phase of the new product development process?

Test marketing

Concept testing

Product development

Business analysis

Screening

6.Assessment question

Kira loves Mexican food. She saw an ad for a new Mexican restaurant that touted its affordable prices. She went in to eat but thought the food was way too salty. Kira thought perhaps it was just a fluke. She tried the restaurant again, but the food tasted just as bad. For Kira the restaurant has a low _______.

number of customer services

level of quality

consistency of quality

product differentiation

comparative quality

7.Assessment question

Miles recently stayed at the Hyatt. He loved the experience. The staff was so nice, and the rooms were clean. The concierge was extremely helpful. He decided to stay there when he returned on his next business trip. However, the next time he stayed there, there were different staff members who were not very friendly or helpful. Also, the housekeeping staff did not change the towels in his room. The only thing he found to be the same was the concierge. This Hyatt seems to lack _______.

level of quality

good customer service

functionality

product features

consistency of quality

8.Assessment question

DVD players have been declining for years. Recognizing that DVD players are a thing of the past, those who manufactured DVD players have not attempted to make any changes but are letting them live out the remainder of their lives. The makers of DVD players have new technology to explore and do not want to waste resources trying to prolong the life of an obsolete technology. This is an example of _______.

product fading

a run-off

a phase-out

an immediate drop

harvesting

9.Assessment question

Which is the best way to handle the deletion of a product?

Dropping the product immediately once sales start to decline

Maintaining the product as long as there are loyal customers

Discontinuing the product after it becomes a heavy financial burden

Conducting a review to determine its impact on the overall product mix

Eliminating the product only if repositioning fails

10.Assessment question

Procter & Gamble is in the process of eliminating products from the product mix because they no longer satisfy a sufficient number of customers. This is best described as _______.

product deletion

product adoption

product positioning

commercialization

disruptive innovation

11.Assessment question

Around the holidays, 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

Weather conditions

Time spent on the task

Bundled pricing

Compensation-based pricing

12.Assessment question

Traveler’s Insurance uses an umbrella in its name to symbolize protection. The symbol provides a cue to overcome which aspect of a service?

Intangibility

Heterogeneity

Client-based relationships

Perishability

Inseparability

13.Assessment question

Fidelity Investments is one of the largest mutual fund and brokerage services providers 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.

inseparability

perishability

customer contact

heterogeneity

intangibility

14.Assessment question

Assume that Coca-Cola has a manager for Powerade, a manager for Coca-Cola, a manager for Fairlife, and a manager for SmartWater. What types of managers are these?

Venture team managers

Brand managers

Assistant managers

Product managers

Market managers

15.Assessment question

Neveah works in research and development at a consumer products firm. She meets up with Sergio, who works in finance, Arun, who works in production, and David, who works in marketing. Together they are going to develop a new product that Neveah’s department had researched. They are responsible for all aspects of developing the product. This is an example of a _______.

work group

positioning team

brand department

venture team

brand management

16.Assessment question

Scenario 11.1.

During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide.

Refer to Scenario 11.1. P&G had to modify its Tide product to appeal to this new demographic. What type of product modification did it make?

Repositioning modification

Product line modification

Aesthetic modification

Functional modification

Quality modification

17.Assessment question

Scenario 11.1.

Refer to Scenario 11.1. What stage of the product development process was P&G in when it decided to discontinue Tide Basic?

Test marketing

Concept testing

Commercialization

Product development

Business analysis

18.Assessment question

Scenario 11.1.

Refer to Scenario 11.1. P&G marketed Tide Basic as a detergent that could perform the basic functions of its signature Tide products at a lower price to the consumer. This was an attempt to create a concept of the product in customers’ minds. This is referred to as _______.

product modification

product development

line extension

product positioning

product organization

19.Assessment question

Scenario 11.2.

In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign.

Refer to Scenario 11.2. Which of the following slogans should Coca-Cola use to signal to consumers that its Mother drink has been repositioned?

“Mother—Great Taste and Great Energy”

“Mother Energy Drink: Get More for Less”

“New Mother—Tastes Nothing Like the Old One”

“Not Your Everyday Mother”

“Mother Energy Drink—For Those Who Dare to Dream”

20.Assessment question

Scenario 11.2.

Refer to Scenario 11.2. In repositioning the product, Coca-Cola changed the taste of the product. It also changed the look of the product with a larger can size and different colors. This is an example of a(n) _______ modification.

functional

repositioning

quality

product line

aesthetic

21.Assessment question

Scenario 11.2.

Refer to Scenario 11.2. By using a larger can size and different colors, Coca-Cola is changing the _______ of the product.

product features

repositioning

quality

functionality

styling

22.Assessment question

Scenario 11.3.

Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari’s firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly.

Refer to Scenario 11.3. Nari is working with a team to determine the feasibility of the product. Together with her team, she shows a small group of avid coffee customers a written description as well as a photo of the proposed product. She hopes to determine whether they would buy the product and what they think about it. Nari and her team are at what stage in the product development process?

Test marketing

Product development

Commercialization

Concept testing

Business analysis

23.Assessment question

Scenario 11.3.

Refer to Scenario 11.3. Nari is working with a team to develop the product. It has identified a sustainable teak wood and designed a unique cotton drip bag for the coffee maker. It has also identified several potential manufacturers in Central America. Nari’s company is currently working on the _______ for the pour-over coffee maker.

concept testing

commercialization

product quality

support services

product design

24.Assessment question

Scenario 11.3.

Refer to Scenario 11.3. Nari’s firm released the pour-over coffeemaker, and it became a hit among a niche group of avid coffee fans. For a few years sales were high. Eventually, however, sales peaked and started to decline. Nari’s firm realizes the coffeemaker still has a small following of dedicated customers. They plan to move on to a more advanced pour-over coffeemaker, but in the meantime they plan to emphasize the core strengths of the current coffeemaker, including the fact that it is so sustainable. This is an example of what type of product deletion?

Phase-out

Fading

Immediate drop

Repositioning

Run-out

25.Assessment question

Scenario 11.4.

Refer to the perceptual map for car brands and then answer the question below.

A diagram of a car brand Description automatically generated

Refer to Scenario 11.4. In which quadrant would two-door Ford Mustang Coupe most likely fit?

The upper-right quadrant

None of the quadrants

The lower-right quadrant

The lower-left quadrant

The upper-left quadrant

Chapter 12 Assignment: Pricing Concepts and Management

1.Assessment question

Apple has long promoted the style, design, and quality of its products and has become very successful because many consumers consider these characteristics desirable. Apple can best be described as operating in an environment of _______.

price elasticity

pricing objectives

nonprice competition

marginal analysis

price competition

2.Assessment question

If Peloton seeks to lead the electronics industry in innovation, what type of pricing objective will it most likely adopt?

Cash flow

Return on investment

Product quality

Status quo

Survival

3.Assessment question

Artemis Inc. has a pricing objective to increase its primary product’s sales relative to total industry sales. This is best described as a _______.

product quality objective

return on investment objective

cash flow objective

status quo objective

market share objective

4.Assessment question

Daniel always has to purchase popcorn whenever he goes to the movies. Popcorn is typically marked up 1,275 percent. However, Daniel is willing to pay this price. For Daniel the _______ is influencing his view of price.

type of product

target market

purchase situation

marketing mix

product quality

5.Assessment question

Miguel is setting prices for new couches. The couch he is currently looking at is higher quality and expected to last longer than a traditional couch. Miguel expects to set the price of the couch high because he knows that consumers anticipate paying more for longer-lasting products. What stage of the pricing process is Miguel currently at?

Evaluating competitors’ prices

Determining the final price

Developing pricing objectives

Choosing a basis for setting prices

Assessing the target market’s evaluation of price

6.Assessment question

ACE Corp.’s products have elastic demand. If ACE raises the price of products, what will be the result?

An increase in market share

A decrease in market share

A decrease in total revenue

An increase in total revenue

A decrease in product inventory

7.Assessment question

Juan thinks he has reached the point where he has maximized his profit. However, because this can be tricky to determine, he is not sure. He decides to test it by selling one more unit. If Juan is correct in his assumption, what should happen when he sells this additional unit?

Juan will break even on his sales.

Marginal revenue will exceed marginal cost.

Profit will increase but at a slower rate.

Marginal cost will exceed marginal revenue.

Profits will be reduced to zero.

8.Assessment question

Camila is undergoing the eight-step process for establishing prices for a newly launched product. She has just finished assessing the target market’s evaluation of possible prices. What is Camila’s next step?

Development of pricing objectives

Selection of a basis for pricing

Selection of a pricing strategy

Determination of a specific price

Evaluation of competitors’ prices

9.Assessment question

Lexi operates a service business that engages in systematically collecting data on brands and prices at competitors’ stores for her business customers. For which stage of the price establishment process would this service be most appropriate?

Assessing the target market’s evaluation of price

Developing pricing objectives

Selecting a pricing strategy

Selecting a basis for pricing

Evaluating competitors’ prices

10.Assessment question

Lin is attempting to price a piece of custom-made equipment for a gym. The production costs of the equipment are hard to assess. She decides it would just be easier to add a specified dollar amount to the total cost. What type of pricing is Lin using?

Cost-plus

Markup

Dynamic

Yield management

Demand-based

11.Assessment question

Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price changes in response to demand, competitors’ prices, or environmental conditions. This is best described as _______.

competition-based pricing

cost-based pricing

markup pricing

yield management

cost-plus pricing

12.Assessment question

LEGOLAND is implementing a new type of pricing. When demand increases and more customers visit the parks, the price will increase. When demand dips during the slow season, prices will decrease. This is a way to help balance out supply and demand. What is another name for the type of pricing that LEGOLAND is using?

Markup pricing

Cost-based pricing

Cost-plus pricing

Competition-based pricing

Dynamic pricing

13.Assessment question

Felipe goes to a Toyota dealership looking for a new car. He finds a Toyota Corolla he really likes. The time has come to meet with the salesperson. What type of pricing strategy is the salesperson likely to adopt with Felipe?

Negotiated pricing

Penetration pricing

Customary pricing

Professional pricing

Secondary-market pricing

14.Assessment question

Danny has a dilemma. He works for a chocolate company and the price of chocolate is going up. The most logical solution would be to raise the price. However, Danny knows from his history in the business that their loyal customers would not look favorably on a price increase. For customers, candy bars are one of those items where the price rarely changes. Danny’s firm has sold its candy bars for $0.99 for the past two decades. Danny feels that the next best solution to absorbing the extra costs is to make the candy bars slightly smaller without lowering the price. Danny’s company is most likely using which of the following pricing strategies?

Everyday low price

Product-line

Customary

Price leader

Penetration

15.Assessment question

Malcolm has decided that he wants to open up his own law practice. The time has come to establish prices for his services. Due to his extensive experience and legal background, he believes that his fees should not relate directly to the time or effort spent on specific cases. Now that Malcolm has chosen the pricing strategy he wants to use, what is his next step?

Choosing a basis for setting prices

Evaluating competitors’ prices

Determining the final price

Assessing the target market’s evaluation of price

Developing pricing objectives

16.Assessment question

ACE Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use?

A quantity discount

An allowance

A cash discount

A trade discount

A seasonal discount

17.Assessment question

Scenario 12.1.

Chantel, a resident of Denver, Colorado, decided to open up her own fine jewelry store. To do so, she used her life savings and a loan from the bank. Chantel was able to open up a store with sufficient inventory. She markets the jewelry as the “finest jewelry in the West.” The most popular item Chantel sells is a rose gold bracelet that sells for $550. During one month, Chantel’s fixed costs are $6,000. Her variable costs average about $400.

Refer to Scenario 12.1. How many rose gold bracelets would Chantel have to sell to break even?

18.Assessment question

Scenario 12.1.

Refer to Scenario 12.1. When Chantel raised the price of her rose gold bracelets by $75 to cover unexpected expenses, she was surprised to see that demand appeared to increase. She was making more sales at a higher price. This means the rose gold bracelets are _______.

typical products

inelastic

value conscious

elastic

price conscious

19.Assessment question

Scenario 12.3.

Eduardo’s company is about to release a new electronics product. The electronics product is estimated to have a short life cycle before it is replaced by an upgraded one. The company would like to recover the capital spent to produce the product. It therefore decides to charge the highest possible price for the product upon release. Eduardo’s firm recognizes this might provide an advantage to competitors who may release the product at a lower price, but it believes customers will feel that the higher price signals higher quality.

Refer to Scenario 12.3. What type of pricing strategy is Eduardo’s company using for this product?

Differential pricing

Price skimming

Price lining

Penetration pricing

Captive pricing

20.Assessment question

Scenario 12.4.

Forouzan works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main objective for this product is to increase the product’s sales in relation to industry sales. Forouzan has obtained a list of prices that tell her how much similar products are being sold for. Forouzan is particularly interested in the industry’s top competitor because it has so much market share. After determining the price of its major competitor, Forouzan decided to undercut their price by several dollars. She believes putting a sign in their stores that features her company’s discounted price next to the price of their major competitor for the same product will show consumers that Forouzan’s company offers them a much better deal. However, she knows that she has to be careful not to misrepresent the competitor’s price in the process.

Refer to Scenario 12.4. Forouzan’s firm has adopted a _______ pricing objective.

market share

cash flow

profit

status quo

return on investment

21.Assessment question

Scenario 12.4.

Refer to Scenario 12.4. When Forouzan is examining the list of prices, she is most likely in which of the following stages?

Developing pricing objectives

Assessing the target market’s evaluation of price

Evaluating competitors’ prices

Determining the final price

Choosing a basis for setting prices

22.Assessment question

Scenario 12.4.

Refer to Scenario 12.4. Which of the following pricing strategies is Forouzan planning to adopt?

Penetration pricing

Price lining

Customary pricing

Special-event pricing

Comparison discounting

23.Assessment question

Scenario 12.5.

A few months ago, a major B2B supplier raised prices of its products by 10 percent to compensate for changes in market conditions. One of its sales reps, Tamika, was surprised when orders from her regular customers plummeted. Her normal order was $1,100. After the price increase, the average order dropped by 25 percent. Tamika became concerned that customers might look elsewhere. For this reason, she decided to start offering discounts. When one of her loyal customers, David, purchases $950 worth of product for his firm, the supplier gives David the terms “4/20 net 30.” She wants to maintain her relationship with David and would ideally like to receive payment in less than a month.

Refer to Scenario 12.5. Consider how the average order amount changed when prices were raised $75. The elasticity of demand is _______. With this in mind, the product can best be described as _______.

0.4; inelastic

2.5; elastic

0.4; elastic

2.5; inelastic

1.0; elastic

24.Assessment question

Scenario 12.5.

A few months ago, a major B2B supplier raised prices of its products by 10 percent to compensate for changes in market conditions. One of its sales reps, Tamika was surprised when orders from her regular customers plummeted. Her normal order was $1,100. After the price increase, the average order dropped by 25 percent. Tamika became concerned that customers might look elsewhere. For this reason, she decided to start offering discounts. When one of her loyal customers, David, purchases $950 worth of product for his firm, the supplier gives David the terms “4/20 net 30.” She wants to maintain her relationship with David and would ideally like to receive payment in less than a month.

Refer to Scenario 12.5. What type of discount is the supplier offering David?

Cash

Allowance

Transfer

Cumulative

Trade

25.Assessment question

Scenario 12.5.

Refer to Scenario 12.5. How much would David have to pay if he pays in 25 days? In 19 days?

$950; $665

$912; $950

$950; $912

$923; $950

$950; $760

Chapter 13 Assignment: Marketing Channels and Supply Chain Management

1.Assessment question

Corinne works in procurement for a major electronics company. One of her challenges is ensuring that raw metals, such as tungsten, coltan, and tantalum, are not being sourced from mines whose profits are used to finance war lords and terrorists. She’s very excited to work with a new company that uses _______, an incorruptible digital recordkeeping system to track these precious metals from mine to manufacturer to ensure they are not “conflict metals.”

vertical integration

blockchain

logistics

supply chain

cloudchain

2.Assessment question

Mallory loves her job. She sells complementary products of several producers in assigned territories and is compensated through commissions. Mallory is highly effective at selling these products and is able to earn a high income from commissions. The best part is she never actually owns the products she sells. She acts more as a salesperson. Mallory is most likely a(n) _______.

wholesaler

manufacturer’s agent

logistics manager

industrial distributor

megacarrier

3.Assessment question

Which of the following is most likely to use the channel where the good goes from producer to retailer to end consumer?

Caterpillar

Target

Sysco

Hershey

Netflix

4.Assessment question

Grainger specializes in products that are used to maintain, repair, and operate facilities (MRO products). Grainger takes title to products and carries inventories. It also offers services such as inventory management and support. Grainger is most likely a(n) _______.

channel captain

third-party logistics firm

private warehouse

industrial distributor

megacarrier

5.Assessment question

Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates _______.

place utility

time utility

form utility

technological utility

possession utility

6.Assessment question

When you buy a new backpack from LLBean.com, which of the following consumer marketing channels are you using?

Producer to agent to wholesaler to retailer to consumer

Producer to wholesaler to retailer to consumer

Producer to consumer

Producer to industrial distribution to consumer

Producer to retailer to consumer

7.Assessment question

Which of the following companies and their products would most likely use intensive distribution?

Prada (handbags, fashion accessories, etc.)

Rolex (jewelry)

Dell (electronics)

Sony (electronics)

Kimberly-Clark (paper-based products)

8.Assessment question

Which of the following is most likely to use exclusive distribution?

Ferrari 488GTB

Microsoft Office Suite

Apple iPad

Ford vehicles

Nespresso espresso machines

9.Assessment question

In 2015, Heinz and Kraft Foods merged into one company. This is most likely an example of _______.

vertical channel integration

horizontal channel integration

multichannel distribution

logistics

strategic channel alliance

10.Assessment question

Within its supply chain, Walmart establishes channel policies and coordinates development of the marketing mix. Walmart most likely _______.

has channel power

is a digital channel member

is horizontally integrated

is vertically integrated

is a channel captain

11.Assessment question

Suppose you roast coffee and sell it to Maximum Markets. You have a good relationship with Maximum Markets and have relied on them for many years to display your coffees in their stores. Your marketing chain has been relatively short, going from you (the producer) to the reseller (Maximum Markets) to the end consumer. However, you recently received an offer to sell your coffee in other retail stores, some that compete directly with Maximum Markets. You also would like to start selling directly through your website. You decide to provide discounts for coffee sold online. Integrating more channel members and selling to customers directly is likely to cause _______ with Maximum Markets.

channel conflict

vertical integration

logistics conflict

channel cooperation

channel integration

12.Assessment question

In addition to producing the popular iPod and iPad, Apple also helps design the components as well as the processors. It also owns its own retail stores. Apple therefore operates in the hardware, software, services, and retail industries. This is an example of _______.

horizontal channel integration

vertical channel integration

channel leadership

channel cooperation

channel conflict

13.Assessment question

If PetSmart began to acquire very successful local pet stores, this would be an example of _______.

vertical integration

multichannel integration

horizontal integration

digital integration

channel power

14.Assessment question

BSNF Logistics is an organization that companies can use to help with their logistics needs. BSNF touts its strong capabilities in land, air, water, and rail services. It creates customized solutions to meet a variety of logistics needs for its customers. BSNF Logistics maintains that it has strong expertise in core logistics activities and can often perform these activities more efficiently. BSNF is most likely a(n) _______.

industrial distributor

wholesaler

manufacturers’ agent

megacarrier

third-party logistics firm

15.Assessment question

Carlos is looking for a way to transport low-sulfur coal. He would like to choose a transportation mode that will get his product to its destination in a reasonable time period. He also needs the transportation mode he chooses to carry large quantities of this coal, but he would like to keep costs down. Which mode of transportation should Carlos use?

Truck

Airplane

Waterway

Pipeline

Railroad

16.Assessment question

Dell Computer and Harley Davidson are well known for their use of the just-in-time (JIT) approach. To which of the following logistics activities does the JIT approach belong?

Warehousing

Inventory management

Order processing

Transportation

Materials handling

17.Assessment question

Adah works in logistics for a manufacturing firm and manages inventories. Her managers want the organization to be more lean, but Adah knows that stockouts can lead to customer dissatisfaction. Thus, determining optimal reorder points is vital. If the usage rate of her current product is ten units per day, the order lead time is five days, and the safety stock is ten, what is the reorder point?

105

500

18.Assessment question

Uniqlo has adopted a system that employs tags and readers to identify and track materials tagged with special microchips through every phase of handling. This system is dramatically improving inventory control and equipment tracking while also thwarting distribution of counterfeit Uniqlo branded clothing. This system is best described as _______.

Radio frequency identification (RFID)

Third-party logistics (3PL) firms

Vertical marketing systems (VMS)

Electronic data interchange (EDI)

Just-in-time (JIT)

19.Assessment question

Aramis Corporation sells hammers and other tools to Blue’s Hardware Store. Suppose that Aramis, which is the only supplier of a specific type of hammer that Blue’s sells, informs Blue’s that it will have to purchase certain other products from Aramis if it wants to continue receiving the hammers. Blue’s owner is dismayed because these other products are costly. It has no customers for these products. Aramis is attempting to get Blue’s to enter into _______.

restricted sales territories

exclusive dealing

a vertical integration partnership

a tying agreement

a refusal to deal

20.Assessment question

SimpleTech is a startup that offers a line of smart technology products that integrate with Alexa and Google Assistant. Although its first products—smart electrical outlets and light switches—did very well, SimpleTech is facing some challenges getting its latest products into retail stores. The company’s president wants to require retailers to purchase its entire product line in order to be able to order the electrical outlets and light switches. The company’s legal counsel is recommending against this action because the courts have often rejected such agreements. SimpleTech is attempting to adopt _______.

restricted sales territories

full-line forcing

refusal to deal

VMS agreements

exclusive dealing

21.Assessment question

Fila Sports Oceania is a subsidiary of an Italian company that owns apparel rights for certain teams in the Australian Football League. Fila introduced a policy in which retailers could not feature Fila products in the same stores as other licensed products from its rivals. The Australian Competition and Consumer Commission ruled this as anticompetitive. Fila was most likely forcing its retailers into _______.

refusal to deal agreements

full-line forcing

tying agreements

restricted sales territories

exclusive dealing

22.Assessment question

Scenario 13.1.

Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future.

Refer to Scenario 13.1. Shane is in charge of working with movie studios and third-party distributors to purchase DVDs and Blu-ray discs to be made available through the kiosks. His only responsibility is to procure the movies and video games for the different kiosks. Purchasing specifically falls under _______.

channel management

operations management

intermediary management

logistics management

procurement

23.Assessment question

Scenario 13.1.

Refer to Scenario 13.1. Consider that Redbox locates its kiosks close to shopping centers where customers can pick up a movie while out shopping for food or other supplies. Based upon this, what type of utility do Redbox’s kiosks offer to consumers?

Place utility

Form utility

Possession utility

Cost utility

Time utility

24.Assessment question

Scenario 13.1.

Refer to Scenario 13.1. What type of market coverage is Redbox most likely to use?

Intermediate distribution

Extensive distribution

Intensive distribution

Selective distribution

Exclusive distribution

25.Assessment question

Scenario 13.1.

Refer to Scenario 13.1. Redbox kiosks keep track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays it uses to supply the kiosks based on this information. These activities most likely fall under which of the following?

Materials handling

Transportation

Warehousing

Inventory management

Order processing

Chapter 14 Assignment: Retailing, Direct Marketing, and Wholesaling

1.Assessment question

When Olive Garden sells wine to its customers in the restaurant, this is an example of _______.

retailing

direct marketing

vending

wholesaling

warehousing

2.Assessment question

Land’s End mines the data obtained from all customer interactions on its website using _______ tools in order to better understand customers’ needs and to make recommendations to them.

app

sales data

marketing analytics

beacon

decision support system

3.Assessment question

Phydeaux & Friends is an independent retailer that carries deep product lines of pet supplies. This small, locally-owned store is best classified as a(n) _________.

traditional specialty retailer

off-price retailer

warehouse showroom

category killer

department store

4.Assessment question

The United Kingdom’s largest supermarket chain 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

department store

supermarket

warehouse club

warehouse showroom

5.Assessment question

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(n) _______.

warehouse showroom

convenience store

department store

off-price retailer

category killer

6.Assessment question

Dollar General, Dollar Tree, Big Lots, and 99¢ Only Stores are best described as _______.

extreme-value stores

warehouse clubs

department stores

discount stores

supermarkets

7.Assessment question

Ross Dress for Less is a retail chain that buys manufacturers’ seconds, overruns, returns, and off-season production runs of apparel at below-wholesale prices for resale to consumers at deep discounts. Ross stores offer limited lines of national-brand and designer apparel and accessories. Consumers appreciate the ability to purchase name-brand goods at discounted prices, and the stores do particularly well during economic downturns. Ross is best classified as a(n) _______.

off-price retailer

department store

traditional specialty retailer

warehouse showroom

category killer

8.Assessment question

When Malcolm walks into his local American Eagle store, he gets a message on his smartphone announcing that T-shirts in the store are 25 percent off today. This illustrates the use of _______.

beacons

self-checkout

smart mirrors

websites

virtual fit

9.Assessment question

Kaylee has entered into an arrangement in which she can sell branded products, benefit from a national promotion program, and obtain equipment, buildings, management know-how, and marketing assistance in exchange for a percentage of her sales. This is best described as _______.

direct marketing

retail positioning

online retailing

licensing

franchising

10.Assessment question

National Geographic sent Ray his monthly magazine. It 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 _______.

vending

direct-response marketing

telemarketing

catalog marketing

direct selling

11.Assessment question

Joan is taking time out from her career as a marketing manager to be a stay-at-home mom. To supplement her family’s income, she has recently arranged to host parties at her home for Pampered Chef. During these parties, she demonstrates Pampered Chef kitchen products to invited friends and former colleagues and gives them an opportunity to purchase Pampered Chef products. This is best described as _______.

telemarketing

vending

direct selling

television home shopping

online retailing

12.Assessment question

Sahana has become well known for her beautiful jewelry creations. For years, she sold her jewelry in her downtown farmer’s market as well as on Etsy.com. Sahana's Etsy sales were slow until she hired a professional photographer to take better pictures of her items using herself or friends as models. Sahana feels like she could make and sell more jewelry but isn’t sure what retail format would best allow her to demonstrate her jewelry items and show them off. What type of retailing would you recommend that Sahana try next?

Direct-response marketing

Online retailing

Vending

Television home shopping

Telemarketing

13.Assessment question

Lyle founded a salsa manufacturing plant in his hometown of El Paso, Texas. Sales have been good, and demand for his products has 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) _______.

retailer

broker

drop shipper

direct marketer

agent

14.Assessment question

Cardinal Health 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 _______.

retailing

manufacturing

direct marketing

wholesaling

warehousing

15.Assessment question

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

general-merchandise wholesaler

specialty-line wholesaler

limited-service wholesaler

limited-line wholesaler

rack jobber

16.Assessment question

Anjali Ravi and Sofia Samilpa are starting a business where they own and stock display racks in supermarkets, discount stores, and drugstores with current magazines. Ravi and Samilpa’s business would best be described as _______.

general-merchandise wholesalers

specialty-line wholesalers

rack jobbers

truck jobbers

drop shippers

17.Assessment question

Scenario 14.1.

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 added more product lines including luggage, beauty products, and even some housewares and electronics. 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.

Refer to Scenario 14.1. Based upon the description, Nicole is engaging in _______.

direct marketing

vending

wholesaling

direct selling

retailing

18.Assessment question

Scenario 14.1.

Refer to Scenario 14.1. Based upon the information about Nicole’s store, what type of store do you think it is?

Department store

Warehouse club

Category killer

Discount store

Specialty-line wholesaler

19.Assessment question

Scenario 14.1.

Refer to Scenario 14.1. Nicole 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 located her shop in a _______.

lifestyle shopping center

neighborhood shopping center

community shopping center

regional shopping center

power shopping center

20.Assessment question

Scenario 14.1.

Refer to Scenario 14.1. 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 _______.

wholesaling

opening a subsidiary

franchising

direct selling

direct marketing

21.Assessment question

Scenario 14.2.

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.

Refer to Scenario 14.2. What is one of the disadvantages Jordynn encountered by opening a franchise instead of her own restaurant?

Inconsistent business practices

Greater government regulations

Higher failure rate

Higher costs

Loss of some control

22.Assessment question

Scenario 14.2.

Refer to Scenario 14.2. The Tuscany theme Jordynn adopts, including photos of Italian scenes and Italian-style architecture, is part of Olive Garden’s _______.

atmospherics

direct marketing

multichannel selling

retail positioning

category management

23.Assessment question

Scenario 14.3.

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 to open up another channel of distribution.

Refer to Scenario 14.3. Based on her criteria, Delilah should probably use _______.

home shopping

catalog marketing

direct selling

vending

telemarketing

24.Assessment question

Scenario 14.3.

Refer to Scenario 14.3. 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 _______.

atmospherics

vending

direct marketing

category management

retail positioning

25.Assessment question

Scenario 14.3.

Refer to Scenario 14.3. Now that Delilah is selling her pottery in her store, through a catalog, and online, she is engaging in _______.

telemarketing

direct selling

wholesaling

multichannel retailing

home shopping

Chapter 15 Assignment: Integrated Marketing Communications

1.Assessment question

L’Oréal engages in _______ on MTV’s The Hills: New Beginnings by strategically featuring their makeup products being used by cast members to reach the product’s target markets.

word-of-mouth communication

viral marketing

product placement

buzz marketing

product integration

2.Assessment question

Tyler owns a jewelry business and would like to get more customers. His ideal form of promotion would be a local television advertisement. However, he decides it costs too much for him to go that route. He decides to place an ad instead on Facebook at a fraction of the cost. What is Tyler’s reason for choosing this form of promotion?

Characteristics of the product

Marketing objectives

Promotional resources

Availability of promotion methods

Characteristics of the target market

3.Assessment question

The mayor of a major city held a press conference to comment on changes to a local ordinance and explain how it would affect the city. During the press conference, interested citizens could use Twitter to submit questions for a live Q&A. The mayor’s staff monitored the questions and selected some of them for the mayor to answer during the press conference. The Q&A will be published later on the mayor’s blog. This can best be described as _______.

viral marketing

integrated marketing communications

personal selling

word-of-mouth communication

a push policy

4.Assessment question

Capital One coordinates its marketing efforts to continually set the message that its airline reward miles have no blackout dates. Both its print and television advertisements feature Jennifer Garner. Which of the following is the major goal of integrated marketing communication (IMC) in regard to its marketing messages?

Flexibility

Reliability

Validity

Profitability

Consistency

5.Assessment question

Scenario 15.1.

Aiden works for an indie board game company. With the help of his coworkers, Aiden recently designed an online contest using social media that encouraged fans to submit their own ideas for a new board game. Participants would submit their ideas, and consumers would vote for them on the site. Those who garnered the most votes would see their idea designed as a new game. The winner would be rewarded by receiving 2 percent of the proceeds from sales of the board game.

Refer to Scenario 15.1. What type of promotion is this online contest?

Advertising

Buzz marketing

Public relations

Sales promotion

Personal selling

6.Assessment question

Scenario 15.1.

Refer to Scenario 15.1. In order to communicate the message, Aiden had to convert his message into writing that represented the ideas he was trying to get across. Aiden is the _______ of the message, and he is involved in _______.

source; reducing noise

source; encoding

source; decoding

receiver; encoding

communications channel; decoding

7.Assessment question

Scenario 15.1.

Refer to Scenario 15.1. The campaign was so successful that Aiden decided to host a press conference to announce the winner. Aiden invited the media to film the event. The CEO of the firm named the finalists and then called out the winner. This all occurred with much fanfare. An illustration of the proposed board game with a short description was provided to reporters to publish in the paper. This campaign is an example of _______.

advertising

personal selling

sales promotion

buzz marketing

public relations

8.Assessment question

Which of the following most likely constitutes buzz marketing?

Five Guys is considering updating its slogan to appeal to a younger demographic of consumers.

Five Guys posts a sign outside of its restaurants advertising a new lunch special.

Five Guys uses chalk to draw out a giant professional-looking drawing of fries complete with the Five Guys logo on the boardwalk of a big city.

Five Guys partners with Farmville to feature a “Five Guys Farm” as part of the social media game for a limited time.

Five Guys engages in a consumer game in which consumers receive board game prize stickers that come with the food they order.

9.Assessment question

Scenario 15.2.

High Kicks is a shoe brand that targets the teen market. It has been having trouble reaching its target audience through traditional promotion. Readership of magazines and newspapers has declined among the teen market. Research also shows that when watching television teenagers will often switch to a different channel whenever a commercial comes on. High Kicks decides to pay to have the main characters in the popular teen series Riverdale wear its newest sneakers during certain episodes. It hopes to familiarize viewers with its newest brand.

Refer to Scenario 15.2. High Kicks is engaging in what type of promotion?

Viral marketing

Buzz marketing

Product placement

Public relations

Word-of-mouth marketing

10.Assessment question

Scenario 15.2.

Refer to Scenario 15.2. The type of promotional activity used is based on _______.

promotional resources, objectives, and policies

costs and availability of promotional methods

characteristics of the target market

characteristics of the product

push and pull policies

11.Assessment question

Scenario 15.2.

Refer to Scenario 15.2. Based on the scenario, what is High Kicks’ most likely objective for the promotion of its new brand?

Stimulating demand

Retaining loyal customers

Facilitating reseller support

Creating awareness

Combating competitive promotional efforts

12.Assessment question

Scenario 15.3.

John and his husband Miguel are highly critical of promotion. Recently their son has asked for a new bicycle even though the old one works fine. John believes all the ads for the bicycle on television have convinced his son that he must have the bike to be happy. However, Miguel’s main concern is that the ads on television are misleading about the features of the bicycle, so he worries their son will be disappointed with the real thing.

Refer to Scenario 15.3. John believes that _______.

promotion increases prices

promotion promotes potentially harmful products

promotion creates needs

promotion costs too much

promotion is deceptive

13.Assessment question

Scenario 15.3.

Refer to Scenario 15.3. Miguel believes that _______.

promotion costs too much

promotion promotes potentially harmful products

promotion is deceptive

promotion increases prices

promotion creates needs

14.Assessment question

Which of the following best represents noise in the communication process?

When the receiver refuses to provide relevant feedback

The use of technical jargon the receiver doesn’t understand

The failure to have a desired product in stock

A loud sound that startles an in-store consumer

The failure of the receiver to listen to the message

15.Assessment question

Emerald Nuts released an advertisement describing the health benefits and nutritional value of different nut varieties such as cashews and peanuts. Emerald’s objective for this promotion is most likely to _______.

retain loyal customers

encourage product trial

create awareness

stimulate selective demand

stimulate primary demand

16.Assessment question

Which of the following sites has likely been the most useful for marketers wanting to engage in viral marketing?

Netflix

YouTube

Amazon

Wikipedia

Pandora

17.Assessment question

Because Brianna loves Chinese food, she was eager to check out a new Chinese restaurant. The restaurant had undertaken a large-scale promotional campaign, with television commercials, glossy magazine ads, and large billboards. However, when she talked to two of her friends, they told her the service was terrible and quality was poor. Based on these recommendations, Brianna decided it was not worth it to try out the restaurant. The Chinese restaurant failed to realize the importance of _______.

electronic marketing

push policies

word-of-mouth marketing

publicity

buzz marketing

18.Assessment question

A boutique is open Monday through Saturday from 9 a.m. to 6 p.m. The store usually has some type of sales promotion during the weekdays but rarely offers them on Saturdays. This promotional strategy is most likely because the owner wants to _______.

retain loyal customers

facilitate reseller support

reduce sales fluctuations

identify prospects

create product awareness

19.Assessment question

Janet works for an email marketing software company and sets up a booth at a digital marketing trade show. Interested representatives from different firms can talk with Janet about the products her company offers. Janet encourages each person that stops by to fill out a form with their information on it so her company can send them more information about their products as well as promotional opportunities. Janet is using this promotional technique to _______.

reduce sales fluctuations

create product awareness

identify prospects

facilitate reseller support

retain loyal customers

20.Assessment question

Mamrie works as a marketer for a big box store. Because Mamrie loves the Economist, she takes out an advertisement in the next issue. However, Mamrie later realizes that middle and lower-income individuals—a significant portion of the target market for her company’s product—do not read the Economist. In fact, most do not even read print magazines anymore. Mamrie’s campaign suffers from the use of the wrong _______.

source

noise

decoding process

marketing channel

encoding

21.Assessment question

General Motors uses the phrase “precision matters” in an advertisement alongside a photo of a hummingbird to create the analogy that the precision with which this bird pollinates a flower is parallel to the commitment that GM workers have to producing high-quality, well-engineered, and well-manufactured cars and trucks. This is an example of what?

Feedback

Decoding

Encoding

Marketing channel

Noise

22.Assessment question

When Gillette released a controversial ad endorsing the #MeToo movement and challenging men to behave better toward women, Gillette was able to gauge the reaction to its ad immediately through social media. Many people tweeted or messaged Gillette with their thoughts. This is an example of what?

Noise

Encoding

Feedback

Decoding

Channel capacity

23.Assessment question

Chipotle recently introduced a game called “Cado Crusher” that allowed users to make their own guacamole and appreciate Chipotle’s fresh ingredients. After playing, users received a coupon for free guacamole. The game was designed to reinforce consumers’ understanding of the quality and freshness of its long-time favorite guacamole. This is an example of what?

New introductory promotion

Feedback

Promotion

Primary demand

Noise

24.Assessment question

Cotton Incorporated frequently runs advertisements for clothing made from cotton with the tagline, “the fabric of our lives.” Their ads do not promote any brand in particular. Cotton Incorporated is trying to stimulate _______.

primary demand

product trial

new introductory promotion

awareness

selective demand

25.Assessment question

Subway creates a paid promotion featuring a different 6-inch sub of the day each day of the week. The sub of the day is only $3.50. Subway utilizes the radio to spread the word. Which promotion method is Subway using?

Advertising

Buzz marketing

Personal selling

Public relations

Sales promotion

Chapter 16 Assignment: Advertising and Public Relations

1.Assessment question

Scenario 16.1.

Noonsa provides copywriting services for promotions from several clients. Anna works on the artwork for the promotions using copy Noonsa writes. After they are finished, their colleague Rami arranges the artwork and copy. Currently, they are developing a print advertisement that will appear in a magazine. If their manager approves their work, they will be able to go ahead and proceed to the next step in the development of the campaign.

Refer to Scenario 16.1. Noonsa, Anna, and Rami most likely work at a(n) _______.

advertising agency

temp agency

consulting firm

editing organization

public relations agency

2.Assessment question

IHOP (International House of Pancakes) announced it would change its name to IHOb (International House of Burgers). While the temporary stunt received both positive and negative attention from consumers as well as the media, the campaign was intended to be a fun _______ tool to draw attention to IHOP’s burger selection.

sales promotions

public relations

advertising

search advertising

content marketing

3.Assessment question

The J.Crew Ludlow Suit collection capitalizes on its positioning as “style with a substance.” This is most likely the _______ for this particular J.Crew product line.

advertising media plan

advertising campaign

advertising platform

advertising appropriation

advertising objective

4.Assessment question

Scenario 16.2.

OkCupid paid popular community site BuzzFeed to publish a post on its site. The post is titled “How to Be Super Dateable, According to OkCupid.” The post followed the BuzzFeed format but also included links to download the OkCupid app.

Refer to Scenario 16.2. What type of advertising is OkCupid using?

Pioneer

Advocacy

Native

Institutional

Comparative

5.Assessment question

Scenario 16.2.

OkCupid paid popular community site BuzzFeed to publish a post on its site. The post is titled “Here's How to Be Super Dateable, According to OkCupid.” The post followed the BuzzFeed format but also included links to download the OkCupid app.

Refer to Scenario 16.2. OkCupid wanted to know how effective its campaign was. It decided to survey BuzzFeed readers to measure how well they remembered the advertisement. OkCupid is currently in the _______ stage of the advertising campaign and is interested in implementing a _______.

creating the advertising message; consumer jury

choosing the advertising platform; posttest

developing the media plan; pretest

determining the advertising appropriation; unaided recall test

evaluating advertising effectiveness; posttest

6.Assessment question

Wells Fargo’s cross-selling scandal resulted in the creation of millions of fake accounts, betraying the trust of its customers. Wells Fargo has launched a series of campaigns to reestablish its credibility as a trusted bank. If Wells Fargo wants to identify changes in public opinion impacting the firm, it should conduct _______.

an aided recall test

an environmental audit

a communications audit

a social audit

environmental monitoring

7.Assessment question

Scenario 16.1.

Refer to Scenario 16.1. Rami is most likely working on _______.

the storyboard

illustrations

a regional issue

layout

the headline

8.Assessment question

Scenario 16.3.

Every year a small town hosts a popular relay race that gets nationwide attention. One year, Expedia donated a travel package for the winner. The event always gets extensive media coverage.

Refer to Scenario 16.3. Expedia’s donation of a travel package for the winner of the relay race was most likely an attempt to generate positive _______.

advertising

public relations

sales promotion

content marketing

viral marketing

9.Assessment question

Scenario 16.3.

Every year a small town hosts a popular relay race that gets nationwide attention. One year, Expedia donated a travel package for the winner. The event always gets extensive media coverage.

Refer to Scenario 16.3. Suppose that USA Today writes an article about this year’s relay race. This acts as _______ for the small town.

pioneer advertising

a press conference

publicity

viral marketing

a feature article

10.Assessment question

Scenario 16.3.

Every year a small town hosts a popular relay race that gets nationwide attention. One year, Expedia donated a travel package for the winner. The event always gets extensive media coverage.

Refer to Scenario 16.3. The New York Times requested a photo of the winner. They posted the photo on the news website. Underneath they included a brief description of the race and the winner. This is an example of a _______.

content marketing tool

captioned photograph

product placement

press release

native advertisement

11.Assessment question

Stonybrook Organics—famous for its organic yogurt—came out with an advertisement that showed an idyllic setting of a cow resting comfortably in front of a barn. The headline read, “Grant a Farmer’s Wish.” The Stonyfield logo was at the top left. This is most likely to be what type of advertising?

Competitive advertising

Institutional advertising

Pioneer advertising

Product advertising

Comparative advertising

12.Assessment question

J. J. Watt, an NFL player, was featured in a Reebok and Finish Line print advertisement. The ad includes a photo of J. J. Watt and large text that reads, “Make an Imprint.” Toward the bottom of the ad it says “Available at Finish Line” in small print with a link to Finish Line’s website and a Finish Line logo. In the upper right corner is a Reebok logo with small text underneath that reads “Be more human.” Which of the following is most likely to be the headline?

The Reebok logo

“Make an Imprint”

“Available at Finish Line”

J. J. Watt’s photo

“Be more human”

13.Assessment question

Rory is hiring a part-time graphic designer who will exclusively work on corporate identity materials for her company. Which of the following should the graphic designer have experience designing?

Coupons

Business cards

Facebook ads

Institutional advertising

Storyboards

14.Assessment question

A sunscreen company sends out a press release about its limited-edition products which benefit a nonprofit for skin cancer. Which of the following is the best way for the sunscreen company to measure the impact the public relations message had on attitudes toward the company?

Measuring attitude levels before and after the campaign

Asking consumers for relevant feedback after the campaign

Examining discussions about the campaign on social media forums

Counting the number of media exposures

Performing a content analysis of the message

15.Assessment question

Ring, a smart home security company, wants to develop a campaign for its latest doorbell model. Before it can do anything else, Ring must _______.

decide between advertising and public relations

create the advertising platform

determine the type of media

define advertising objectives

identify and analyze the target audience

16.Assessment question

Verizon releases advertising that informs users that it is “America’s #1 Internet Service Provider.” This is an example of _______.

competitive advertising

pioneer advertising

reinforcement advertising

comparative advertising

institutional advertising

17.Assessment question

Shiloh is part of team creating a new advertisement for Bounty paper towels. Shiloh favors showing a large photo of the paper towels cleaning up a spill with the popular tagline, “Quicker Picker Upper.” Another team member, Luanne, prefers an advertisement that will describe how Bounty is superior to Brawny, a competitor. Shiloh favors a(n) _______ advertising approach, while Luanne favors a _______ approach.

reminder; reinforcement

comparative; competitive

reinforcement; pioneer

institutional; product

reminder; comparative

18.Assessment question

Which of the following is an example of public relations?

Macy’s sends out notices through its mobile app informing consumers of its super sale on July 4.

Patagonia pays for communication in a magazine.

The Container Store provides hundreds of hours of employee training to enhance customer service.

Target puts up a placard with the names and photos of employees recognized for exceptional service.

Samsung creates a funny video that indirectly pokes fun at its competitor Apple.

19.Assessment question

PepsiCo launched a massive sustainability campaign involving water conservation and rain forest preservation. It wants to create an image of being a strong corporate citizen. After the campaign, PepsiCo wants to measure the extent to which its stakeholders view it as being ethical and socially responsible. What should PepsiCo conduct?

A social audit

An environmental audit

An ethical audit

A communications audit

A public relations audit

20.Assessment question

Netflix has been working on what it believes is a revolutionary new technology for video streaming. The company is ready to showcase this technology. It knows this is a major news event and wants to get as much exposure as possible. Which public relations tool would probably be best for Netflix to use to announce this major news event?

News release

Event sponsorship

Feature article

Press conference

Captioned photograph

21.Assessment question

Xavier is developing a media plan to derive maximum results from his media expenditures. Xavier is using _______ to go beyond human ability to make media decisions by matching the target audience to the right media selection for an effective plan.

an objective-and-task approach

a recognition test

a consumer jury

artificial intelligence (AI)

a competition-matching approach

22.Assessment question

After slumping sales, Joe needs to create an advertisement. He depends heavily on local TV and radio stations for copywriting, artwork, and advice about scheduling media. Joe most likely works at a(n) _______.

public relations agency

consulting firm

large firm

very small firm

advertising agency

23.Assessment question

AfterShokz releases an advertisement for its Titanium model of wireless stereo headphones. The ad highlights that they are lightweight and comfortable and allow for crystal clear calling. This is most likely to be what type of advertising?

Pioneer advertising

Comparative advertising

Institutional advertising

Product advertising

Competitive advertising

24.Assessment question

Identify the advertisement below that most likely appeals to a target audience that is health conscious.

Cozi creates an advertisement for its free family organizer app that helps parents create family schedules.

GEICO creates an ad that says the company can save consumers 15 percent or more on their car insurance.

Pandora highlights its sterling silver and 14K gold jewelry with photos of its diamond encrusted jewelry and the headline, “The Art of You.”

Downy releases an ad for its fabric conditioner featuring a college student in a dormitory and includes a coupon for $1 off in a student newspaper.

Blue Diamond releases an ad in Shape showing a container of almonds jumping rope with the headline “Get your good going.”

25.Assessment question

Alexa works for an engineering firm that is about to change its slogan. While Alexa did not plan to announce the change, the company’s public relations agency suggests a single page _______ explaining the change in order to spread the word.

news release

captioned photograph

press conference

feature article