Chapter 9
1) Marilyn's Travel Inc. is a medium-sized travel agency that specializes in vacation packages. It has packages available around the globe--everything from cruises, to beach resort vacations, to historical tours. The customer chooses the amount they would like to pay, the area of the world they would like to visit and what they would like to do. Based on this information Marilyn's Travel uses to delight the customers.
A) mass customization
B) excellent human resources management
C) lean manufacturing
D) the Internet
A) mass customization
Roberto is a marketing manager for Friendly Financial Services. He has been looking at a variety of factors, such as technological, socio-cultural and economic trends as well as competitive conditions. Roberto is confident that these factors will impact Friendly's future marketing success. His efforts are an example of:
A) environmental scanning.
B) relationship marketing.
C) target marketing.
D) competitive benchmarking.
A) environmental scanning.
1) Comet Computer Company will make a splash with psychedelic laptop cover designs scheduled for release next year. The computers do not reveal any other feature differences from what Comet currently offers. This effort is an example of using ______________ to differentiate a product as new.
A) brand extension
B) packaging
C) incremental channeling
D) incremental coloring
B) packaging
Sales levels of Armstrong mountain bikes are rising rapidly, profits are very high, and a growing number of competitors are taking aim at Armstrong's market lead. Based on this information, Armstrong mountain bikes are in which stage of the product life cycle?
A) maturity
B) introduction
C) decline
D) growth
D) growth
Phil asks you to calculate the break-even point for his firm. You respond that you will need the following information:
A) total fixed costs, selling price per unit, and variable costs per unit.
B) sales revenue and total liabilities.
C) forecasted sales volume, operating expenses, and asset values.
D) the values for all assets and liabilities.
A) total fixed costs, selling price per unit, and variable costs per unit.
Upon their return from a recent scuba diving and snorkeling trip on the island of Cozumel, Mexico, Tyler and Diana highly recommended the resort where they stayed. Guest services were extremely prompt in assisting with diving excursions. All resort employees were trained to greet every guest each time they encountered them, whether it was on a pathway to the pools and beaches, or in the restaurants. Many times, the employees even referred to each guest by name. in the service sector is about creating a good experience for customers. A) Intermittent planning
B) Production management
C) Operations management
D) Enterprise resource planning
C) Operations management
2) Several years ago, Canadian Sam Holman realized there may be a need for a stronger, more durable wood baseball bat. He went through the process of developing the SamBat, a maple bat of precise dimensions. He set a price with a reasonable margin, he decided to take special orders and sell bats directly from his garage, and he promoted the bat with sales calls to professional baseball camps, where ball players could sample the bat. In marketing terms, we recognize that Mr. Holman designed the _____________.
A) marketing mix
B) marketing process
C) marketing equity
D) marketing distribution
A) marketing mix
Entice-Mint Breath Mints is a new brand of breath fresheners. The company realizes that product location is very important since consumers desire to buy this type product with a minimum of effort. Entice-Mint mints represent a:
A) shopping good.
B) industrial good.
C) specialty good.
D) convenience good.
D) convenience good.
Dewy, Cheatem, and Howe's promotional efforts are intended to increase the public's awareness of its new product's benefits and uses. This effort is consistent with the ________ stage of the product life cycle model.
A) growth
B) decline
C) introduction
D) maturity
C) introduction
Green Giant Green Beans, Chevrolet Corvette, Coca-Cola, Dole Pineapple, and Peter Pan Peanut Butter are all examples of:
A) manufacturers' brands.
B) private brands.
C) registered generic brands.
D) wholesaler brands
A) manufacturers' brands.
Megatronics, Inc., obtains computer components from a variety of suppliers and puts them together according to customer specifications to create custom-made computers. This process is an example of:
A) synthetic production.
B) an assembly process.
C) process manufacturing.
D) continuous production.
B) an assembly process.
In an effort to increase profits, Yen Ching Chinese restaurant is attempting to appeal to a specific segment of the market by offering an all-you-can-eat buffet. These efforts, designed to identify specific groups that can be profitably served, represent an example of:
A) a reference group strategy.
B) target marketing.
C) benefit segmentation.
D) B2B marketing.
B) target marketing.
Federated Grocery Stores operates a large chain of stores across several midwestern states. While Federated doesn't actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Federated canned foods represent a:
A) generic brand.
B) manufacturers' brand.
C) dealer (private) brand.
D) knockoff brand.
C) dealer (private) brand.
The EZee Office Furniture Company makes high-quality desks and chairs for executive 8) __ _ otli ces. The company is about to make a radical change in its production process. It will take measurements from customers, have them select from a variety of fabric patterns and answer some basic questions about the furniture styles they like, then design a chair and desk that is ergonomically designed for maximum comfort for its users. The new method EZee Office will use is an example of:
A) analytic production.
B) just-in-time manufacturing.
C) mass customization.
D) individualized production.
C) mass customization.
X-Sport Industries is a U.S.-based manufacturer of sporting goods. Recently, it has decided to make a major push to sell its products in the European Union. In order to succeed in this new market X-Sport will need to:
A) avoid reliance on the Deming cycle.
B) reduce the wages of its production workers.
C) become certified in ISO 9000 standards.
D) convert its financial assets into euros.
C) become certified in ISO 9000 standards.
Wild Bill's Cap Emporium offers to produce hats and caps according to customers' requests. Wild Bill's utilizes a(n):
A) intermittent process.
B) continuous process.
C) just-in-time system.
D) analytic system.
A) intermittent process.
11) All-Star Collectibles focuses its marketing efforts on high-income buyers of unique collectible items. The firm realizes that the number of buyers in this segment of the collectible market is small. However, they are confident that this approach will be profitable since these buyers will pay premium prices for their unique products and superior customer service. All-Star's approach is an example of:
A) niche marketing.
B) target positioning.
C) relationship targeting.
D) competitive benchmarking.
A) niche marketing.
6) Sweet Dream Confectioners uses the same ingredients as most other producers of chocolate candies. In fact, taste tests suggest that the candy itself, while quite good, isn't much better than other well-known brands of chocolate. However, the company wraps its candies in expensive-looking foil and places them in very attractive boxes. It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Dream charges a much higher price than most competitors, but sales continue to grow. This success indicates that:
A) there is more to the total product offer than the physical product.
B) consumers seldom consider price when making a buying decision for goods such as chocolate.
C) chocolate is best classified as a convenience good.
D) consumers always behave in an irrational manner.
A) there is more to the total product offer than the physical product.
11) Sarah works for an architectural firm. The partners in the firm have always drawn the 11 ) __ _ plans for projects by hand. While Sarah learned how to draw by hand in college, she also became skilled on computer programs that permitted her to create designs in three dimensions. She plans to demonstrate the effectiveness of such programs to the firm's partners. The computer program she will recommend to the partners is:
A) CAD.
B) SCM.
C) ClM.
D) CAM.
A) CAD.
12) Roosevelt Community College has experienced declining enrollment for the past three years. In the past the college has relied strictly on enrollment from newly graduated high school students. In order to identify other potential markets, Roosevelt Community College would benefit from:
A) sales promotions.
B) a stakeholder audit.
C) test marketing.
D) marketing research.
D) marketing research.
At Stevens Manufacturing workers are organized in teams that combine their efforts to produce complex units of a final product. Stevens is using a facility layout known as a(n):
A) continuous flow layout.
B) modular layout.
C) assembly team layout
D) consolidated process layout.
B) modular layout.
3) A comparison of the marketing concept and customer relationship management indicates that customer relationship management:
A) attempts to improve profits by keeping quality high, while the marketing concept attempts to improve profits by a careful design of the promotional mix
B) and the marketing concept are in fact identical.
C) turns the marketing concept upside down. The marketing concept emphasized that marketing was the most important function performed by a firm, but customer relationship management views management to be the most important function.
D) extends the marketing concept by calling for the firm to learn more about its customers so that it not only satisfies them, but exceeds their expectations over time.
D) extends the marketing concept by calling for the firm to learn more about its customers so that it not only satisfies them, but exceeds their expectations over time.
As a graphic artist, Nate has just finished producing a new calendar. His calendar cost him $1.00 for the shiny paper, $2.00 for the six color production, and $.25 for the plastic wire that holds it together at the top. The labor in developing the design was 4 hours of work at $50/hour, and labor is being added to the rest of the fixed costs of $400.00. At a price of $12.00 per calendar, how many calendars will Nate need to produce and sell in order to break even (cover all his costs, but not make a profit)?
A) 25 calendars
B) 40 calendars
C) 690 calendars
D) 69 calendars
D) 69 calendars
16) As part of her responsibilities as a marketing manager, Jan has completed a review of data her department has gathered through telephone interviews, mail surveys and focus groups. Jan is disappointed because the research results strongly suggest that a product idea she helped develop is unlikely to be popular with potential customers. Jan should:
A) continue developing the product, but try to find ways to reduce production costs.
B) proceed with product development because the opinions of experienced marketing managers often turn out to be more accurate than marketing research.
C) put the product on temporary hold, throw out the results of the research, and design and conduct a new study.
D) accept the research results and reevaluate the proposed product.
D) accept the research results and reevaluate the proposed product.
15) By employing a relationship marketing strategy, Jocelyn found success as an entrepreneur. The goal of this strategy is to:
A) use radio and television advertising to attract new customers.
B) target large market segments of potential customers by working closely with a variety of suppliers.
C) communicate to buyers the advantages offered by your firm's low prices and standardized products.
D) work closely with existing customers to better satisfy their wants and needs.
D) work closely with existing customers to better satisfy their wants and needs.