1 CHAPTER 6

A market segmentation strategy to target hockey fans in Mississippi and Alabama would likely be unsuccessful due to its lack of substantiality. True False status: correct (1.0) correct: true your answer: true feedback: Correct. A segment must be large enough to warrant developing and maintaining a special marketing mix. It is doubtful there are enough hockey fans in those two states to create a successful market segment. 2 Users of demographic segmentation market by age, gender, hobbies, income, ethnic background and family life cycle. True False status: correct (1.0) correct: false your answer: false feedback: Correct. Demographic segmentation does not segment markets by hobbies. 3 When Tabasco first introduced its pepper sauce, it used an undifferentiated targeted strategy, which means it adopted a mass-market philosophy. True False status: correct (1.0) correct: true your answer: true feedback: Correct. 4 A company interested in defining geographic segmentation bases should use perceptual mapping. True False status: incorrect (0.0) correct: false your answer: true feedback: Incorrect. Page: 210.
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5 Phoenix Air has established a passenger jet service that competes with the major airlines through its convenient locations and its guarantee that it can get you to your destination 50 percent faster. Phoenix Air uses positioning by attribute to compete with the major airlines. True False status: correct (1.0) correct: true your answer: true feedback: Correct. With positioning by attribute, a product is associated with particular features or benefits. Phoenix Air provides speed and convenience. 6 Jim Dandy and Quaker Oats are the primary manufacturer of instant grits, a Southern breakfast staple. When the product is sold in Louisiana it is prepared with hot sauce. In many parts of Florida it is served with fish. In the foothills of the Southeast grits are served fried. This information would be important to marketers of grits because it indicates the need for a(an) ________ segmentation strategy. a. demographic b. benefit c. usage rate d. geodemographic e. personality status: incorrect (0.0) correct: d your answer: a feedback: Incorrect. Page: 195. 7 People in any age group can have arthritis. The primary segmentation variable used by a drug designed to relieve arthritic symptoms would be: a. geographic. b. geodemographic. c. psychographic. d. benefit.
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e. demographic. status: incorrect (0.0) correct: d your answer: a feedback: Incorrect. Page: 196. 8 ________ assumes consumers compare products on the basis of important features. a. Positioning b. Market segmentation c. Product differentiation d. Market diversification e. Perceptual behavior status: incorrect (0.0) correct: a your answer: b feedback: Incorrect. Page: 209. 9 Travel Centers of America is a chain of truck stops. Many are bigger than small towns. A typical Travel Centers complex contains a motel, two restaurants, a laundry, a wing of showers, a sign shop, a CB radio shop, a game room, two TV lounges, a store that rents DVDs and books-on-tape, and a parking lot that can hold 300 big rigs. Travel Centers of America primarily uses a positioning strategy based on: a. product class. b. competitor. c. price and quality. d. product user. e. supplier. status: incorrect (0.0) correct: d your answer: a feedback: Incorrect. Page: 211.
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10 Anyone who traveled the interstate highways during the 1990's saw lots of TA Truck Stops. At the beginning of this decade, the owner of TA Truck Stops decided the operations needed a more upscale image and rechristened itself Travel Centers of America. TA Truck Stocks implemented a ________ strategy. a. diversification b. repositioning c. divestment d. product development e. product penetration status: incorrect (0.0) correct: b your answer: a feedback: Incorrect. Page: 212. 11 Marketers can use various segmentation bases. Indicate which segmentation base is being used for the following products. Explain your answer. (1) The American Rifleman, a magazine published by the National Rifle Association. (2) Pedigree brand Breathbuster Biscuits to fight bad dog breath. (3) PageNet wireless messaging service. Because it was not able to compete on price when it started operation, it targeted states where there was no wireless messaging service available. (4) Family Dollar Stores. The typical customer at any one of these stores earns less than $25,000 annually. (5) Gillette's Mach3 razor for men and its Venus razor for women.

status: not answered () correct: (1) This is psychographic segmentation because it targets people with particular lifestyles and motives. (2) Benefit segmentation because purchase and use of the product will benefit the dog owner. (3) PageNet initially used geographic segmentation because it targeted specific states. (4) This is income segmentation, which is a demographic segmentation variable. (5) This is gender segmentation, which is a demographic variable. Pages: 188-196. your answer: 12 Organizations use various bases for positioning their products. List the positioning base used for each of the following products based. Explain each answer. (1) Arthritis Today magazine
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(2) Hallmark's line of $.99 greeting cards (3) Nondairy creamer for coffee (4) Rolls-Royce automobiles (5) Brawny paper towels

status: not answered () correct: (1) Positioning by product user. It appeals to people who have arthritis. (2) Positioning by price and quality. It appeals to people who want to pay less but still have the Hallmark quality. (3) Positioning by product class. It is appealing to people who normally use milk or cream in their coffee. (4) Positioning by price and quality. A Rolls-Royce is one of the most expensive cars on the market and is renowned for its quality. (5) Positioning by attribute. It appeals to people who want strong, heavy-duty paper towels. Pages: 210-211. your answer:

Chap 8

Kathy considers computer printers to be a heterogeneous shopping product. This means she believes that all printers are basically the same. True False status: incorrect (0.0) correct: false your answer: true feedback: Incorrect. Page: 263. 2 To evaluate the services of a tattoo artist, you would use experience qualities. True False status: incorrect (0.0) correct: true your answer: false feedback: Incorrect. Page: 265. 3 All Ken's brand salad dressings and marinades are marketed under the Ken's brand name. This is an example of family branding.

True False status: incorrect (0.0) correct: true your answer: false feedback: Incorrect. Page: 274. 4 The label on the package of Buddig Premium Ham Slices states that water was added to the product but no MSG. This is an example of informational labeling. True False status: incorrect (0.0) correct: true your answer: false feedback: Incorrect. Page: 278. 5 Product warranties have to be written if they are intended to protect the buyer. True False status: incorrect (0.0) correct: false your answer: true feedback: Incorrect. Page: 279. 6 Until her Dalmatian puppy developed hip problems and required surgery, Aristide had no idea that he could buy pet insurance to pay for accidents, illnesses, medicines and surgery involving his pet. For Aristide, pet insurance would have been classified as a (an): a. convenience product. b. unsought product. c. homogeneous shopping product. d. specialty product. e. heterogeneous product. status: incorrect (0.0) correct: b your answer: a feedback: Incorrect. Page: 264.
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7 A recipe in an ad for Campbell cream of mushroom soup, which explains how to use the soup to make a delicious chicken meal, is an example of: a. planned obsolescence. b. an aesthetics modification. c. cannibalization. d. trading down. e. repositioning. status: incorrect (0.0) correct: e your answer: a feedback: Incorrect. Page: 269. 8 Fisher-Price and Disney have teamed together to produce and market the Winnie the Pooh Sing 'n' Snore doll for toddlers. This use of both brands on the product is an example of: a. cobranding. b. cross-docking. c. disintermediation. d. mass customerization. e. outsourcing. status: incorrect (0.0) correct: a your answer: b feedback: Incorrect. Page: 274.

9 Which of the following is an example of a trademark? a. The Coca-Cola dynamic ribbon device that appears on all Coke products. b. The style of cursive writing that appears on Campbell soup labels. c. The slogan for TNT cable television, "TNT knows drama". d. The NBC peacock. e. All of the answers are correct. status: incorrect (0.0) correct: e your answer: b feedback: Incorrect. Page: 275. 10 List, briefly define and give an example of each of the four types of consumer products.

status: not answered () correct: (1) Convenience products are relatively inexpensive items that merit little shopping effort. Examples are soft drinks, aspirin, deodorant and snack food. (2) Shopping products are products that require comparative shopping behavior because it is usually more expensive than a convenience product and is found in fewer stores. Examples are major appliances, furniture and clothing. (3) Specialty products are particular items for which consumers search extensively and are reluctant to accept product substitutes. Examples are particular brands of perfumes, Steinway pianos and Rolls-Royce cars. (4) Unsought products are products unknown to the potential buyer or a known product that the buyer does not actively seek. Examples are a product that is brand-new to the market and products like encyclopedias, burial plots and insurance policies that young consumers do not actively seek and buy. Pages: 262-264 your answer:

Chap 9

A Dutch doctor listened to his patients complain about strollers that had wheels that would not roll on grass or beaches. As a result, he and an industrial designer developed the Frog Bugaboo, a stroller that can be used on any terrain. The doctor's discussions with his patients were an example of idea screening. True False status: incorrect (0.0) correct: false your answer: true feedback: Incorrect. Page: 290. 2 The dominant value held by innovators is tradition. True False status: correct (1.0) correct: false your answer: false feedback: Correct. The dominant value held by laggards is tradition. Innovators are venturesome and self-confident. 3 The new line of butter soft leather purses will likely diffuse faster than a new hemorrhoid ointment primarily due to compatibility. True False status: incorrect (0.0) correct: false your answer: true feedback: Incorrect. Page: 299.
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4 Automobile batteries and digital cameras are two examples of product categories. True False status: correct (1.0) correct: true your answer: true feedback: Correct. All brands that satisfy a particular type of need are grouped together as one product category. 5 Prices begin to fall toward the end of the growth stage of the product life cycle due to competitive pressure. True False status: incorrect (0.0) correct: true your answer: false feedback: Incorrect. Page: 302. 6 All product categories have virtually identical product life cycles. True False status: incorrect (0.0) correct: false your answer: true feedback: Incorrect. Page: 301. 7 A company that manufactures natural products to aid people in relaxing has created Soothing Soaks, a waterproof, soap-dish-size book, which explains how to make the most of a relaxing bath. In terms of categories of new products, Soothing Soaks would be an example of a(an): a. improvement on an existing product. b. discontinuous innovation. c. repositioned product. d. value-addition. e. addition to an existing line.
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status: incorrect (0.0) correct: e your answer: b feedback: Incorrect. Page: 288. 8 A buyer for a large department store chain came into a meeting and announced, "Purple is the new pink. Purple has a universal feminine appeal and is ideal for women who want to exhibit subtle sexiness in their lives." Making this statement with the hope that her team will find new and desirable purple colored products, the buyer is suggesting the group at the meeting engage in: a. idea generation. b. test marketing. c. commercializing. d. idea screening. e. prototype developing. status: correct (1.0) correct: a your answer: a feedback: Correct. Idea generation is the development of new product ideas for the purpose of implementing a new-product strategy. The rest of the answers would only occur after new-product ideas had been generated. 9 A Dutch doctor listened to his patients complain about strollers that had wheels that were incapable of rolling on grass or beaches. As a result, he and an industrial designer developed the Frog Bugaboo, a stroller that can be used on any terrain. To ________ the new stroller, the product's developers decided to retail the stroller only at stores in New York City and Beverly Hills to gauge how consumers responded to the product. a. commercialize b. test market c. laboratory test d. conduct follow-up use tests e. create dual distribution strategies status: correct (1.0) correct: b
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your answer: b feedback: Correct. Test marketing is the practice of producing a limited quantity of a product and then developing a marketing program to determine the reactions of potential customers in a market situation. Dual distribution strategies would be evident if the product designers had tried to sell the stroller on-line as well as through retailers. 10 There are two types of communications aid in the diffusion process. One is communication directly from the marketer to potential adopters. The other is: a. mass customized communication. b. a disintermediated channel. c. word-of-mouth communication. d. one-way nonverbal communication. e. through electronic channels. status: incorrect (0.0) correct: c your answer: b feedback: Incorrect. Page: 300. 11 The market for baby strollers is reaching saturation. Product lines are being extended as marketers add sun canopies, mosquito netting, and seat covers to existing stroller models. Marginal competitors have abandoned the market. Niche marketers have appeared like the all-terrain Bugaboo Frog, which is priced at $699. From this information you know that as a product category, strollers are in the ________ stage of the product life cycle. a. introduction b. growth c. maturity d. repositioning e. sales-oriented status: incorrect (0.0) correct: c your answer: e feedback: Incorrect. Page: 302. 12 What does management expert Peter Drucker mean when he says that all companies should practice "organized abandonment?" With which stage of the product life cycle is
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Drucker concerned?

status: not answered () correct: Drucker wants all companies to review every product and organizational policy every two or three years and ask one critical question about each. "If we didn't do this already, would we launch it now?" If the answer is no, then the organization should begin deleting the product or abandoning the policy. Drucker is concerned with the decline stage. Some companies hold on to products and policies that are no longer profitable for a variety of reasons-none of which are particularly pragmatic. Page: 304. your answer:

Chap 10

A florist routinely overcomes discrepancies of assortment for its customers. True False status: correct (1.0) correct: true your answer: true feedback: Correct. Discrepancy of assortment is defined as the lack of the items a customer needs to receive full satisfaction from a product or products. With limited supplies of multiple varieties of flowers, florists constantly offer prospective customers a combination of desired items and alternative items in order to increase their satisfaction. 2 Merchant wholesalers do not take title to the goods they sell.
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True False status: correct (1.0) correct: false your answer: false feedback: Correct. A merchant wholesaler buys goods from manufacturers and resells them to businesses, government organizations and other wholesalers or retailers. It receives and takes title to goods, stores them in its own warehouse and later ships them. 3 There are no direct channels for business-to-business or industrial products. True False status: correct (1.0) correct: false your answer: false feedback: Correct. Direct channels are used with business-to-business products just as they are with consumer products. See Exhibit 10.5. 4 A marketing channel is simply a set of institutions linked by economic ties. True False status: incorrect (0.0) correct: false your answer: true feedback: Incorrect. Page: 327. 5 In a JIT manufacturing environment, the transportation network replaces the warehouse and eliminates the expense of storing inventories. True False status: correct (1.0) correct: true your answer: true feedback: Correct. With JIT (just-in-time) manufacturing, goods are timed to arrive the moment they are needed on the assembly line or for shipment to customers.

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6 By having Valentine's Day candy on the store shelves four weeks before February 14th and not in July when customers are not buying it, a distributor overcomes: a. temporal discrepancies. b. discrepancies of quantity. c. spatial discrepancies. d. discrepancies of assortment. e. atmospheric discrepancies. status: correct (1.0) correct: a your answer: a feedback: Correct. A temporal discrepancy is an incongruity with respect to time that occurs when a product is produced and the customer is not ready to buy it. 7 A wholesaler that contacts potential customers and negotiates the terms of the sale for a manufacturer is engaged in ________ functions. a. transformational b. transactional c. logistical d. financial e. facilitating status: correct (1.0) correct: b your answer: b feedback: Correct. Transactional functions involve contacting and communicating with prospects to make them aware of existing products and to explain product features, advantages and benefits. See Exhibit 10.3.

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8 Hallmark sells its Hallmark brand greeting cards through Hallmark stores and select department stores and its line of Ambassador brand cards through discount and drugstore chains. In other words, Hallmark uses: a. derived demand. b. joint demand. c. dual distribution. d. nontraditional channels. e. direct channels. status: incorrect (0.0) correct: c your answer: b feedback: Incorrect. Page: 320. 9 Ricoh, Limited studied the serious (as opposed to the recreational) camera user and determined that it needed to change its distribution channel. Ricoh terminated its relationship with a distributor that sold to mass merchandising stores and began using manufacturers' agents who sold to specialty camera stores. ________ factors influenced the channel strategy used by Ricoh. a. product b. promotion c. producer d. market e. competitive status: incorrect (0.0) correct: d your answer: c feedback: Incorrect. Page: 324-325.

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10 Jennifer Lopez (J Lo) has a new brand of perfume called Glow. According to commercials for the new scent, it can only be purchased at Federated Department Stores, such as Rich's and Macy's. What level of distribution intensity is being used in this example? a. intensive b. transactional c. selective d. exclusive e. outsourced status: incorrect (0.0) correct: d your answer: c feedback: Incorrect. Page: 327. 11 H. J. Heinz Company found itself involved in a ________ when supermarkets in Great Britain promoted and displayed private brands at the expense of the Heinz brands. a. vertical conflict b. channel advocacy role c. horizontal conflict d. gatekeeper role e. channel mediator role status: incorrect (0.0) correct: a your answer: c feedback: Incorrect. Page: 329. 12 Because service industries are so customer oriented, customer service is a priority. Describe three tactics service providers can use to enhance service distribution.

status: not answered () correct: (1) Minimizing wait times. People tend to overestimate the amount of time they spend waiting in line, and unexplained waiting seems longer than explained waiting.
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Customer perception is why the minimization of wait time is important. (2) Managing service capacity. For product manufacturers, inventory acts as a buffer, enabling them to provide the product during peak demands without extraordinary effort. Service providers do not have this luxury. If they don't have service capacity, they must turn down prospective customers, provide a lower level of service, or expand capacity. (3) Improving service delivery. Service providers are experimenting with nontraditional channels of distribution. They are trying to increase the times that services are available and looking for ways to add to customer convenience. Page: 339. your answer:

Chap 12

Publicity is free. True False status: correct (1.0) correct: false your answer: false feedback: Correct. Although an organization does not pay for mass-media coverage, preparing news releases, staging events and persuading media personnel to print or broadcast them costs money. 2 In terms of the communication process, the advertising agency that created the ad for the new Nabisco Mini Chips Ahoy! cookies acted as an encoder. True False status: correct (1.0) correct: true your answer: true feedback: Correct. Encoding is the conversion of a sender's ideas and thoughts (provided by the Nabisco organization) into a message usually in the form of words and signs. 3 A commercial comparing the thickness of A1 steak sauce and Lawry's steak sauce was designed to perform two promotional tasks: to inform and persuade.
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True False status: correct (1.0) correct: true your answer: true feedback: Correct. Because ads are typically designed to inform, to persuade and to remind, and the steak sauce ad is an example of the first two. The viewer was informed that one product was superior to the other with the hope that he or she would be persuaded to buy the superior product. 4 All buyers involved in purchase situations pass through all four stages of the AIDA model on the way to making that purchase. True False status: correct (1.0) correct: false your answer: false feedback: Correct. Most buyers involved in high-involvement purchase situations pass through all four stages of the AIDA model. It does not typically occur, however, with lowinvolvement products. 5 The fact L'Oreal Kids shampoo is formulated to actually dry hair faster so kids don't have to go to bed with wet hair is the shampoo's unique selling proposition. True False status: correct (1.0) correct: true your answer: true feedback: Correct. A unique selling proposition is a desirable, exclusive and believable advertising appeal. 6 Newspapers are the best advertising medium for a marketer trying to reach a very narrow market. True False status: incorrect (0.0) correct: false your answer: true feedback: Incorrect. Page: 416.
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7 A Newsweek magazine article on Virgin Airlines indicated the company was planning on becoming the Nike of the travel industry. In terms of the promotion mix, this news article was an example of: a. product placement. b. a sales promotion. c. advocacy advertising. d. public relations. e. personal selling. status: incorrect (0.0) correct: d your answer: b feedback: Incorrect. Pages: 391-392. 8 For which of the following products is a consumer most likely to pass through all four stages of the AIDA model? a. A subscription to Sports Illustrated magazine. b. Tickets for the latest Brad Pitt movie. c. A big-screen television. d. A Big Mac. e. A bottle of skin lotion. status: correct (1.0) correct: c your answer: c feedback: Correct. Typically consumers only pass through all four stages of the AIDA model when they are making high-involvement purchases.

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9 Which of the following statements about a product in the maturity stage of its product life cycle is true? a. Marketers use heavy advertising and public relations to build brand loyalty. b. Marketers increase their use of sales promotion to build market share. c. Marketers are most concerned with building product awareness. d. Marketers dramatically decrease their use of advertising and public relations. e. Marketers rely heavily on sales promotions to induce product trial. status: incorrect (0.0) correct: b your answer: c feedback: Incorrect. Page: 403. 10 Which media selection consideration would cause the marketer of a new Barbie brand perfume to advertise on Charmed instead of 60 Minutes? a. demographic selectivity b. variable reach c. geographic selectivity d. media flexibility e. all of the answers are correct status: incorrect (0.0) correct: a your answer: c feedback: Incorrect. Pages: 420-422.

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11 Beatrice Foods, the maker of Reddi-Whip topping, spends almost 40 percent of its entire advertising budget during November and December. Its remaining advertising budget is spent evenly over the next 10 months. Beatrice is using what kind of a media schedule? a. continuous b. pulsing c. bursting d. flighted e. intermittent status: incorrect (0.0) correct: b your answer: d feedback: Incorrect. Pages: 422-423. 12 While waiting in her doctor's office, Smitha is looking at an ad for a Tempur-Pedic mattress in Arthritis Today magazine that states the mattress is viscoelastic and makes all other mattresses obsolete. The ad provides a toll-free number which Smitha could use to request more information about the mattress, but the nurse calls her into the office and she fails to notice it. Identify the components of the communication process and describe how it unfolds when Smitha reads the ad.

status: not answered () correct: The sender is the manufacturer of the mattress. The encoder was the advertising agency that created the ad. The magazine is the channel. Smitha was the decoder and the message receiver. Feedback will be determined by whether Smitha calls the toll-free number or not. The nurse provided noise and may have prevented the message from being correctly or thoroughly processed. See Exhibit 12.2. Pages: 394-396. your answer:

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The news that the success of Burda, Europe's largest magazine publisher, was the result of its support of Nazi ideology is an example of negative publicity. True False status: correct (1.0) correct: true your answer: true feedback: Correct. Publicity is the effort to capture consumers' attentions, and it can enlighten them to negative information about companies. To handle this negative publicity, Burda would use crisis management. 2 When BMW provides cars for James Bond films, the company is engaging in movie sponsorship. True False status: correct (1.0) correct: false your answer: false feedback: Correct. When marketers garner publicity by making sure their products appear at special events or in movies and television shows, it is called product placement. 3 The distribution of coupons on-line is even less effective at inducing sales than other forms of coupon distribution. True False status: incorrect (0.0) correct: false
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your answer: true feedback: Incorrect. Page: 440. 4 The objective of loyalty marketing programs is to reward consumers for making multiple purchases. True False status: incorrect (0.0) correct: true your answer: false feedback: Incorrect. Page: 441. 5 A needs assessment is often conducted during the approach stage of the personal selling process. True False status: incorrect (0.0) correct: true your answer: false feedback: Incorrect. Page: 452. 6 When rumors began that Bertelsmann, the German-based global media giant had been anti-Semitic during World War II, the company issued a press release stating that the company's president during the war was not anti-Semitic. He simply believed in publishing books that had the widest possible audience. This sort of press release would be part of the company's ________ plan. a. transaction-based b. stimulus-response c. subliminal perception d. advertising management e. crisis management status: incorrect (0.0) correct: e your answer: c feedback: Incorrect. Page: 437.

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7 Pedigreed brand is marketing a new snack food for large dogs called Jumbone. It would be most likely to use which form of consumer promotion to induce product trial? a. loyalty marketing programs b. bonus packs c. coupons d. trade allowances e. push money status: incorrect (0.0) correct: c your answer: a feedback: Incorrect. Page: 439. 8 Back in 1933, the marketing department at the Jewel Tea Company wanted to increase sales among the patrons of its home delivery grocery routes. It contacted a china manufacturer and had it design a pattern of dinnerware that was called Autumn Leaf. Customers purchased individual pieces for a nominal fee as a reward for buying a certain dollar amount of groceries. The Autumn Leaf dinnerware was an example of a: a. rebate. b. premium. c. trade promotion. d. product sample. e. push product. status: incorrect (0.0) correct: b your answer: c feedback: Incorrect. Page: 441.

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9 As a tie-in with Jimmy Neutron, Quaker Oats gave its Fruit and Oatmeal Bites customers access to a Web site where each could build his or her own rocket ship. Every Friday night for one month, five rockets were chosen randomly and raced against each other on Nickelodeon and the weekly winners received Jimmy Neutron prizes. In terms of consumer sales promotions, this is an example of a: a. contest. b. sampling promotion. c. push campaign. d. sweepstakes. e. P-O-P opportunity. status: incorrect (0.0) correct: a your answer: b feedback: Incorrect. Page: 442. 10 The trade promotion equivalent to a rebate that is given to companies that push products through the distribution channel is a: a. spiff. b. quantity discount. c. functional allowance. d. trade allowance. e. merchandise return allowance. status: incorrect (0.0) correct: d your answer: c feedback: Incorrect. Page: 445.

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11 The Sun Recreational Vehicle Outlet is trying to decide which promotional tool to emphasize. The outlet's motor homes are customized and expensive, and Sun targets its vehicles to entertainers, sports figures and others who spend more than six months a year on the road. Given this information, Sun Recreational Vehicle Outlet should rely on which promotional tool? a. personal selling b. publicity c. product innovation d. advertising e. sales promotion status: incorrect (0.0) correct: a your answer: c feedback: Incorrect. Page: 447. 12 Your brother is selling cutlery to earn some extra money. He has asked you to advise him on finding potential customers. What advice will you give him?

status: not answered () correct: Your answer should incorporate a detailed discussion of all phases of the selling process. Pages: 449-457. your answer:

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