EXAM 1 BA 303

As a marketing manager for Holden-Evan, a highly successful consumer products company, your task is to re-evaluate the marketing strategy for Grand Champion, a premium dog food brand, that has suffered sales losses for the past couple of years.
Going over the customer report from Jaime, a German Sheperd breeder, you find that Grand Champion is still Jaime’s food of choice. However, the number of litters that Jaime breeds has been reduced due to the economic downturn.
Which of the following represents the best analysis of Jaime’s needs and wants?

a. Jaime’s needs have increased while his wants have stayed the same.
b. Jaime’s needs have decreased while his wants have stayed the same.
c. Jaime’s wants have increased while his needs have stayed the same.
d. Both Jaime’s needs and wants have increased.
e. Both Jaime’s needs and wants have decreased.

b. Jaime’s needs have decreased while his wants have stayed the same.
Recently, Grand Champion stopped offering organic beef in its formula. Few customers complained about this action.
Which conclusion can you draw from this situation?
a. It shows that the Grand Champion brand is suffering from market myopia.
b. It shows that market myopia is not an issue that Grand Champion ever needs to be concerned about.
c. It shows evidence that Grand Champion is taking preventative action to avoid any problems from market myopia.
d. It shows that the Grand Champion brand is about to revive and surge into the future.
e. It shows that the Grand Champion brand is in deep trouble and probably cannot be turned around.
c. It shows evidence that Grand Champion is taking preventative action to avoid any problems from market myopia.
You are seriously considering expanding the traditional target market for Grand Champion of trainers, breeders, and purebred owners to serve a larger market of dog owners for the new reformulated product.
Which of the following is not a good reason for why the traditional market should be expanded?
a. Expanding the traditional market will strengthen the brand’s elite image in the market.
b. The expanded market will increase profits.
c. The traditional market has shrunk in size due to the economic downturn and needs to be expanded.
d. Interest in feeding dogs a high quality food has increased over the past few years.
e. The traditional target market has limited growth potential.
a. Expanding the traditional market will strengthen the brand’s elite image in the market.
Your boss thinks your value proposition, “Grand Champion—good food for the right price” is appropriate for your target market of all dog owners who are interested in quality dog food. However, she thinks you can improve on the phrase if you tweak it.
Which of the following identifies the best value proposition for your target market?
a. “Grand Champion—exquisite dog food for the right price.”
b. “Grand Champion—good food for a rock-bottom price.”
c. “Grand Champion—high quality dog food for a good price.”
d. “Grand Champion—when price isn’t an issue.”
e. “Grand Champion—your dog can help you save!”
c. “Grand Champion—high quality dog food for a good price.”
One member of your team thinks that you should market Grand Champion to a market that includes all dog owners.
Which of the following best support the idea that a target market of all dog owners is a good choice?
a. To appeal to all dog owners, Grand Champion would need to lower its price and production costs.
b. To appeal to all dog owners, Grand Champion would be able to take advantage of its traditional, elite image.
c. To appeal to all dog owners, Grand Champion’s association with dog shows and dog breeders would be a sustainable competitive advantage over rivals.
d. To appeal to all dog owners, Grand Champion would probably need to use cheaper ingredients.
e. In appealing to all dog owners, Grand Champion would be likely to increase overall sales.
e. In appealing to all dog owners, Grand Champion would be likely to increase overall sales.
In making a choice for marketing management orientation, you are thinking of making marketing decisions based on maximizing the welfare of customers and society as a whole. A fellow marketing manager is doubtful that this approach will lead to success.
Which statement best expresses how maximizing the welfare of customers and society as a whole can be a success?
a. Customers respond to improved welfare immediately by increasing purchases that result in higher profits.
b. Improving society typically results in a sense of well-being that makes people want to spend money on luxury items.
c. Maximizing the welfare of customers and society as a whole increases the number of dog owners in the society.
d. Helping to maximize customer and societal welfare creates a positive image which helps the brand grow over the long term.
e. Helping to maximize customer and societal welfare helps eliminate competitors to the brand.
d. Helping to maximize customer and societal welfare creates a positive image which helps the brand grow over the long term.
One way your team has come up with to improve sales is for suppliers to abandon organic and sustainable farming methods.
Which of the following explanations best supports the idea that abandoning organic farming methods will improve sales?
a. Organic farming methods are expensive, so abandoning them will lower the cost of Grand Champion and increase sales.
b. Many people disapprove of organic farming methods, so abandoning them will improve Grand Champion’s image and increase sales.
c. Abandoning organic farming methods will improve the taste of Grand Champion which will result in increased sales.
d. Abandoning organic farming methods will increase production costs of Grand Champion and increase sales.
e. Abandoning organic farming methods will speed up the process of making Grand Champion which will result in increased sales.
a. Organic farming methods are expensive, so abandoning them will lower the cost of Grand Champion and increase sales.
You have settled on a target market that includes all customers interested in quality dog food. However, you get a call from a top manager who says a member of the board of directors is a dog-lover who wants Grand Champion to sponsor dog shows and feature testimonial ads from dog show winners.
Given your target market, which of the following is the strongest argument you can make in favor of sponsoring dog shows?
a. Most dog owners avidly follow dog shows, so you will get maximum exposure from the action.
b. Most dog show winners are pampered and finicky, so if they like Grand Champion so will ordinary dogs.
c. Dog shows have an elite, upper class image that suits the image of your target market.
d. Dog show winner testimonials are like Wheaties testimonials from athletes — they create a winning image of the product.
e. Dog shows have folksy image that suits the image of your target market.
d. Dog show winner testimonials are like Wheaties testimonials from athletes — they create a winning image of the product.
The VP of Marketing is scheduled to attend a meeting of your team. She has informed you that she doesn’t favor any one customer relationship management approach as long as it doesn’t clash with any of the three possible target markets that are being considered. The target markets are: (1) the product’s original target market, (2) a market that includes all customers interested in a quality product, or (3) a market that includes all dog owners.
Which choice of a customer relationship management approach would be least likely to clash with any of the three target markets?
a. a frequent-buyer program that gives greater discounts the more a customer buys
b. a frequent-buyer program that gives a free bag of Grand Champion for every eight bags a customer buys
c. a web site with dog health information and a place for customers to post pictures of their dogs
d. sponsor major dog shows
e. provide free Grand Champion to winning dogs at major dog shows
c. a web site with dog health information and a place for customers to post pictures of their dogs
The VP of Marketing likes your idea of putting pictures of “true believers” on cans of Grand Champion. However, she does not like the requirement that customers will need to purchase one thousand cans to be depicted. “It will take too long and it will be too hard to document,” the VP says.
Which of the following identifies the best modification to the “picture on the can” idea?
10. “The VP of Marketing likes your idea of putting pictures of “true believers” on cans of Grand Champion. However, she does not like the requirement that customers will need to purchase one thousand cans to be depicted. “It will take too long and it will be too hard to document,” the VP says.
Which of the following identifies the best modification to the “picture on the can” idea?

a. have a sweepstakes in which the winning dog gets its picture on the can
b. put winners of major dog shows on cans
c. put random pictures of dogs that are posted on the Grand Champion web site on cans with a prize for each winner
d. put pictures of guard dogs, rescue dogs, and other heroic dogs on cans
e. have a contest in which entrants explain why they are loyal to Grand Champion — the winning entry goes on the can

e. have a contest in which entrants explain why they are loyal to Grand Champion — the winning entry goes on the can
Which step of the marketing process lets the company reap the rewards of its strong customer relationships ?
a) Building customer relationships.
b) Understanding the marketplace and customer needs.
c) Capturing value from customers.
d) Designing a customer-driven marketing strategy.
c) Capturing value from customers.
_____ concept holds that consumers will favor products that are available and highly affordable.
a) Product
b) Selling
c) Marketing
d) Production
d) Production
When backed by buying power, wants become _____.
a) benefits
b) offerings
c) needs
d) demands
d) demands
Which of the following is a result of the recent Great Recession?
a) Reduced regulatory intervention
b) Move toward frugality
c) Increased spending on technology
d) Growth of societal marketing
b) Move toward frugality
Which group of customers are referred to as “barnacles”?
a) Those who are highly loyal but not very profitable.
b) Those who are both profitable and loyal.
c) Those who are potentially profitable but not loyal.
d) Those who show low potential profitability and little projected loyalty.
a) Those who are highly loyal but not very profitable.
What is customer equity?
a) The total combined customer lifetime values of all of the company’s current and potential customers.
b) The present value of the future cash flows attributed to the customer relationship.
c) The difference between what a customer gets from a product, and what he or she has to give in order to get it.
d) Customer’s perceived opinion of a product’s value to him or her.
a) The total combined customer lifetime values of all of the company’s current and potential customers.
Which of the following depends on the product’s perceived performance relative to a buyer’s expectations?
a) Customer-generated marketing
b) Customer-managed relationships
c) Customer-perceived value
d) Customer satisfaction
d) Customer satisfaction
Which is the first step in the marketing process?
a)Designing a customer-driven marketing strategy.
b) Preparing an integrated marketing plan and program.
c)Understanding the marketplace and customer needs.
d) Building customer relationships.
c)Understanding the marketplace and customer needs.
The _____ concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare.
a) responsibility marketing
b) societal marketing
c) selling
d) product
b) societal marketing
With mature consumerism and environmentalism movements, marketers are called to develop _____.
a) consumer-generated marketing
b) sustainable marketing practices
c) customer-managed relationships
d) selling oriented practices
b) sustainable marketing practices
(1) What do we call the collection of businesses and products that make up the company?
a. investment diversity
b. needs inventory
c. business portfolio
d. departments
c. business portfolio
(2) At the corporate level, a company starts the strategic planning process by defining its overall ________.
a. strengths
b. mission
c. portfolio
d. objectives
b. mission
(3) An example of a “threat” to a firm discovered by a SWOT analysis might be
a. cost advantages present because of advanced technology.
b. the chance to acquire firms with needed technology.
c. likely entry of new competitors in the industry.
d. existing government policies adverse to the industry.
c. likely entry of new competitors in the industry.
(4)Starbucks drive-through windows and pre-paid cards are strategies that the company has adopted for
a. market development
b. diversification
c. product development
d. market penetration
b. diversification
(5) When Disney opened a theme park in Hong Kong, which of the following expansion strategies was being practiced?
a. market development
b. market penetration
c. product expansion
d. diversification
a. market development
Marketing planning takes place at the:
a) Business unit level
b) Product level
c) Market level
d) All of the above
d) All of the above
Which of the following mission statements is market-oriented?
a) Revlon: We sell cosmetics
b) Disney: We run theme parks
c) Wal-Mart: We deliver value through low prices
d) Xerox: We make copy, fax, and other office machines
c) Wal-Mart: We deliver value through low prices
Sarah has divided the cellphone market into five groups based on age. This is an example of:
a) Market positioning
b) Market segmentation
c) Market targeting
d) Marketing mix
b) Market segmentation
To identify opportunities and problem areas, companies often hire an independent consultant to conduct a systematic examination of their environment, objectives, and strategies. This is an example of a:
a) SWOT analysis
b) Marketing implementation
c) Marketing audit
d) Value delivery network
c) Marketing audit
The net return from a marketing investment divided by the costs of the marketing investment is called:
a) Return on sales
b) Return on profits
c) Return on marketing investment
d) Value return
c) Return on marketing investment
In the BCG growth-share matrix, low-growth, high-share businesses or products are called:
a) Stars
b) Question marks
c) Cash cows
d) Dogs
c) Cash cows
Schwinn Bicycle Company wants to grow by diversification. To accomplish this, Schwinn will:
a) Introduce new bicycle models
b) Introduce modifications to its existing bicycle products
c) Identify new market segments for its current products
d) Start up or acquire businesses outside of its current products and markets
d) Start up or acquire businesses outside of its current products and markets
Procter & Gamble once had more that ten different brands of laundry detergent but now markets only six. This is an example of:
a) Downsizing
b) Diversification
c) Market contraction
d) Market penetration
a) downsizing
Wal-Mart “partners” with its vendors to deliver greater value to its customers. This is an example of:
a) Convenience
b) Value delivery network
c) Customer orientation
d) Diversification
b) Value delivery network
Companies that sell one product line to many different types of markets should use:
a) Functional organization
b) Geographic organization
c) Product management organization
d) Market management organization
c) Product management organization
As the marketing manager of Holden-Evan, a health, home, and beauty consumer products company, your task is to develop a plan for Blythe, a skin cream that has been losing sales. Your first decision involves what to focus on with respect to marketing mix and the four Ps — product, price, promotion, and place. After some deliberation, you have decided to focus on product. Which of the following best justifies your decision to focus first on product?
a. Product is the only important factor for the four Ps. The other three factors are fairly unimportant compared to product.
b. Product includes price and promotion. Once you have chosen the product, price and promotion have already been determined.
c. It doesn’t really matter which one of the four Ps you start with. Product is as good a choice as any of the others.
d. For an item that relies a great deal on image such as skin cream, product is important. For a more practical item, product is less important.
e. Choosing product attributes first will determine how price and promotion decisions are made.
e. Choosing product attributes first will determine how price and promotion decisions are made.
An advisor suggests that you focus on price before product. You disagree. Which of the following identifies the best argument you can use against this suggestion to focus on price first?
a. Focusing on price first may influence how the a product will be promoted.
b. Focusing on price first puts undue emphasis on where the product will be made.
c. Focusing on price first may cause you to plan a product that cannot be made profitably.
d. Focusing on price first may influence what the product’s market will be.
e. Focusing on price first may influence how the product will be packaged.
c. Focusing on price first may cause you to plan a product that cannot be made profitably.
In focusing on product first, you turn your attention to the product’s packaging — its box, the shape of the jar, and so on. Your advisor isn’t sure that packaging qualifies as an attribute of the product itself. Which of the following best addresses the advisor’s concern?
a. The advisor is correct. The product is the skin cream itself. Packaging is not part of the product.
b. The advisor is correct. Packaging can be considered part of a product only when the packaging itself is consumed.
c. The advisor is incorrect. The box is not part of the product, but the jar is because the customer opens and closes the jar.
d. The advisor is incorrect. Packaging is part of any product.
e. The advisor is incorrect. Packaging is a more important part of the product than the cream itself.
d. The advisor is incorrect. Packaging is part of any product.
Your focus group tells you that most teenage girls see skin creams as beauty creams. To control acne, teens look to specialized acne products. Nevertheless, you choose a formula for Blythe that focuses on beauty but includes moderate acne control. Which of the following best justifies your decision?
a. Teens don’t really know what they want, so their opinions should be ignored.
b. The girls with trouble-free complexions in the group obviously influenced others into discounting the importance of acne control.
c. All skin creams control acne to a certain extent, so a formula with moderate acne control is appropriate.
d. Acne control products don’t really work, so including one in the formula will not compromise the success of Blythe.
e. Some oil-based creams can actually promote acne, so having an element of acne control will ensure the success of the formula.
e. Some oil-based creams can actually promote acne, so having an element of acne control will ensure the success of the formula.
One formula you are considering for Blythe includes high-quality ingredients and is expensive to make. This type of formula is unique for the teenaged market, which usually features low-cost formulas. To help introduce this formulation of Blythe, you want to go with a penetration pricing strategy that starts with a low price and raises the price as the product becomes established. Which of the following presents a danger to your strategy that you least need to worry about?
a. You are likely to lose money in the beginning, before the product becomes well known.
b. You may have competitors in the market by the time you are ready to raise the price.
c. Customers get used to low pricing, and may not accept a price hike.
d. Customers may at first refuse to try a product based on its low price.
e. You are likely to create an image for Blythe that is moderate and affordable rather than luxurious and expensive.
d. Customers may at first refuse to try a product based on its low price.
In your advertising campaign for Blythe you have decided not to advertise in magazines. You have made a list of facts to justify your decision. Which of the following does not belong on your list to justify your decision for avoiding magazine ads?
a. Many teenaged girls read magazines online where the ads can be blocked.
b. Magazine and other print media are the most expensive way to advertise.
c. Teenaged girls access the media primarily through electronic, not print media.
d. Studies show that many teens do not read magazines at all, online or in print.
e. Print advertising is similar in cost to electronic advertising.
b. Magazine and other print media are the most expensive way to advertise.
You are trying to decide between television ads and electronic ads for Blythe. Which of the following represents your most serious worry?
a. Electronic ads too expensive.
b. Teenaged girls get most of their information from television, not the Internet.
c. Television ads fail to reach a wide enough market.
d. Teenage girls almost never watch television.
e. Television ads reach too broad an audience.
e. Television ads reach too broad an audience.
You have decided to go with the less expensive Formula 2 and an electronic advertising program. Which of the following would not be considered a strength of your plan?
a. On the Internet customers must view all ads. Ads cannot be blocked or avoided.
b. You will save money because Formula 2 and electronic advertising are both good values.
c. Electronic media are excellent for targeting a narrow, specific market such as teenaged girls.
d. For electronic media, you can provide more information for interested customers at the click of a mouse.
e. You can coordinate your ads to specific topics. If a girl is reading an article on skin care, your ad will come up.
a. On the Internet customers must view all ads. Ads cannot be blocked or avoided.
You are trying to decide on a final plan for Blythe. Which of the following identifies the best choice?
a. If you go with the more expensive Formula 1, focus on the product itself.
b. If you go with the less expensive Formula 2, focus on the price and use price to determine other decisions.
c. If you go with the anti-acne Formula 3, focus on promotion of the product.
d. No matter which formula you choose, you should focus on the product itself.
e. No matter which formula you choose, you should think of product, price, and promotion as an integrated whole.
e. No matter which formula you choose, you should think of product, price, and promotion as an integrated whole.
Which of the following is NOT an actor within the microenvironment?
a) Cultural forces
b) The company
c) Suppliers
d) Marketing intermediaries
a) Cultural forces
To sell products more efficiently and effectively, most manufacturers seek the assistance of all of the following marketing intermediaries EXCEPT:
a) Resellers
b) Financial institutions
c) Physical distribution firms
d) Suppliers
d) Suppliers
You and your marketing team must develop a plan to sell computer systems to telecommunications providers. This plan targets which of the following customer markets?
a) Business market
b) Consumer market
c) International market
d) Government market
a) Business market
A cosmetic manufacturer receives a letter from PETA, People for the Ethical Treatment of Animals, expressing concern over the use of animals in product testing. To which of the following publics does PETA belong?
a) Local
b) Financial
c) Citizen action
d) Government
c) Citizen action
Alex was born in 1995. To which generation does he belong?
a) Generation X
b) Millennials or Generation Y
c) Baby Boomers
d) Boomerangers
b) Millennials or Generation Y
Which of the following is NOT a current trend associated with the changing American household?
a) The percent of married couples with children is increasing.
b) More people are divorcing, separating, and choosing not to marry.
c) The number of working women is increasing.
d) The number of nontraditional households is growing more rapidly.
a) The percent of married couples with children is increasing.
Based on recent geographic shifts in population, you would most likely open your new branch of a sporting goods store in which of the following areas?
a) The South
b) The Northeast
c) The Midwest
d) Canada
a) The South
From a demographic point of view, your new Internet-service company stands a good chance of succeeding because the U.S. population is:
a) Becoming more ethnically diverse
b) Growing older
c) More inclined toward citizen action
d) Becoming better educated
d) Becoming better educated
Factors that affect consumer buying power and spending patterns fall under which environment?
a) Natural
b) Cultural
c) Economic
d) Technological
c) Economic
For every pair of blue jeans purchased by customers, GAP is donating $5.00 to the World Wildlife Fund. This is an example of:
a) Cause-related marketing
b) Philanthropy
c) Social marketing
d) Cultural marketing
a) Cause-related marketing
As Marketing Director at Gerlach, a small Colorado textbook company, you are responsible for proposing long-term changes in your company’s marketing strategy. Reports from your research teams indicate that changes are occurring in both the macroenvironment and the microenvironment of the company. Which of the following identifies a development that is not a macroenvironment change?
a. Non-English-speaking students are expected to increase dramatically.
b. Deforestation has created a shortage of trees that are used for paper.
c. New regulations have been passed that change how recycled paper is used.
d. School enrollments have been predicted to decline in the coming decade.
e. A rival company has come out with a new homeschool math program.
e. A rival company has come out with a new homeschool math program.
English-language-learners are expected to triple in number in the coming decade. Does this development identify a growth opportunity for Gerlach or a danger?
a. a growth opportunity because non-English-speaking students will need to have special textbooks
b. a growth opportunity because non-English-speaking students are generally affluent and purchase a lot of books
c. a danger because Gerlach will sell fewer books to English-speaking students
d. a danger because non-English-speaking students will take resources from English-speaking students
e. neither an opportunity nor a danger because schools do not purchase special books for non-English-speaking students
a. a growth opportunity because non-English-speaking students will need to have special textbooks
A demographic report states that Colorado’s population is aging and therefore the number of students in public schools is likely to decline. Which of the following is the best response to this development from a marketing point of view?
a. Look for ways to reverse the trend and increase the number of school-age children.
b. Encourage older parents to have more children.
c. Look for new markets to develop that are outside of the school systems.
d. Increase the selling price of books to maintain profit margins.
e. Encourage school systems to increase the number of grades from K-12 to K to 14.
c. Look for new markets to develop that are outside of the school systems.
Deforestation has reduced the amount of paper available for Gerlach, which in turn is increasing manufacturing costs. Which of the following strategies identifies the best way to deal with this development?
a. Gerlach should promote programs for the state to plant more trees.
b. Gerlach should focus on dramatically reducing the size of its staff to cut costs.
c. Gerlach should focus on cutting down on the amount of paper it uses by 50 percent or more.
d. Gerlach should focus on getting the lowest possible short-term price for paper.
e. Gerlach should focus on getting a stable, predictable, long-term price for paper.
e. Gerlach should focus on getting a stable, predictable, long-term price for paper.
An segment of Colorado parents is increasingly becoming dissatisfied with the public school system and is likely to opt out of the system in the coming decade. Does this development identify a growth opportunity for Gerlach, or a threat?
a. a threat because these dissatisfied parents are likely to be dissatisfied with the textbooks in Colorado schools
b. a threat because these parents are likely to run for office in local school boards
c. a growth opportunity because it will create a market that Gerlach can serve for students who opt out of the public school system
d. a growth opportunity because it will result in a larger overall school-age population for Colorado
e. neither a growth opportunity nor a threat because it will not change the number of school-age children there are in Colorado
c. a growth opportunity because it will create a market that Gerlach can serve for students who opt out of the public school system
You have decided to reject a suggestion from a marketing analyst to begin a marketing campaign to urge young families to move to Colorado. Which of the following provides the strongest reason for you to reject the suggestion?
a. There is a shortage of young families all across the U.S.
b. The suggestion is likely to work too well and create an overpopulation of of young families in Colorado.
c. As new families moved in, existing families would be likely to move out of Colorado.
d. As a private company, Gerlach has no way to effectively influence migration policy.
e. Most of the families who are likely to move in would not be attending public schools.
d. As a private company, Gerlach has no way to effectively influence migration policy.
You are considering a move to transfer a 25 percent of Gerlach’s resources and manpower to a new English language learner (ELL) department. Which of the following identifies the strongest reason for why this move may not prove to be unwise?
a. If predictions are accurate, ELL students will still make up less than one-seventh of the student population.
b. ELL students are not likely to attend public schools.
c. ELL students are not likely to need special textbooks.
d. Textbooks for ELL students are much more difficult to write, edit, and produce than conventional textbooks.
e. A new ELL department is likely to create conflicts within the company.
a. If predictions are accurate, ELL students will still make up less than one-seventh of the student population.
Lobbyists for small groups on both sides of the climate change debate are trying to push through radical new changes to the state’s public school system. Which of the following identifies the best strategy for dealing with this issue?
a. Produce educational materials on the side of the debate that denies climate change, since it is likely to prevail.
b. Produce educational materials on the side of the debate that supports climate change, since it is likely to prevail.
c. Produce educational materials on both sides of the debate, since it is impossible to predict who will prevail.
d. Do nothing because it is impossible to predict who will prevail, and it is also likely that no new laws are passed at all.
e. Do nothing because this issue is likely to be forgotten by the next election cycle.
a. Produce educational materials on the side of the debate that denies climate change, since it is likely to prevail.
You are considering the development of a homeschooling program at Gerlach. Which of the following identifies the least convincing reason for entering the homeschooling market?
a. The homeschooling market is growing.
b. Homeschooling parents are likely to need textbooks.
c. The same texts can be used to sell to both the homeschooling market and the English language learner market.
d. The homeschooling market is growing as fast as the ELL market.
e. Homeschooling is a trend that cuts across all socioeconomic groups.
c. The same texts can be used to sell to both the homeschooling market and the English language learner market.
One option you are considering to avoid high paper costs is to sell more electronic texts. Which of the following is not an advantage of publishing a text electronically?
a. The cost of production of an electronic text is lower than the cost for a hard-copy product.
b. Some customers prefer reading a text in an electronic form than in hard-copy form.
c. With respect to writing, editing, and design, the creation of an electronic text is less complicated than a hard-copy text.
d. Readers of electronic texts can link to other sources and texts to make their experience richer.
e. Almost all people see electronic texts as environmentally friendly, which improves Gerlach’s public image.
c. With respect to writing, editing, and design, the creation of an electronic text is less complicated than a hard-copy text.
As a manager within the Market Research department of TriState Dairies, you have been given the job of researching the viability of producing flavored milks for adults. You need to conduct market research to determine whether or not there is a strong, untapped market for flavored milks that are designed for adults. Which of the following identifies the first step that you should take in your research?
a. Obtain a list of adults who can be interviewed about their attitudes toward flavored milk.
b. Define the problem that your research is going address.
c. Set up a data bank for collection of your data.
d. See how children feel about non-flavored milk before you begin research with adults.
e. See how both children and adults feel about flavored milk.
b. Define the problem that your research is going address.
You are considering questions to ask potential adult customers in a market survey. Which question best defines the problem you would like to solve?
a. How much flavored milk do you drink each day?
b. What is your favorite kind of flavored milk?
c. Is flavored milk just for kids?
d. How healthy do you think flavored milk is compared to other drinks?
e. Would you consider buying flavored milk that was designed for adults if it were available?
e. Would you consider buying flavored milk that was designed for adults if it were available?
One option you are considering is focusing your research exclusively on health-conscious adults. You want to know how interested this group would be in purchasing flavored milks. Which statement best describes the flaw in this approach?
a. It leaves out non-health-conscious adults who could be potential customers.
b. It does not say whether the health-conscious adults are looking for specific nutrients or general health benefits.
c. It leaves out teenagers and children, who could be potential customers.
d. It does not say whether the health-conscious adults are looking to flavored milks as a weight-loss food.
e. It does not break down the category of adults into gender or age groups.
a. It leaves out non-health-conscious adults who could be potential customers.
A complete market research program will include both primary and secondary sources. Which of the following is a secondary source?
a. interviews with adults who normally drink soft drinks
b. questionnaires for milk-drinkers of all ages
c. observations of customers sampling TriState products at a mall
d. published accounts of demographics for all types of beverages
e. response to a Twitter query about flavored milk drinking
d. published accounts of demographics for all types of beverages
You are trying to decide between two research options — observing customers making drink purchases live or conducting a survey. Which of the following is a major disadvantage of observing consumers making purchases live?
a. There is no way to conceal the observers from the consumers.
b. Consumers tend not to be truthful or spontaneous in this kind of situation.
c. The data collected in observational studies is hard to quantify.
d. Observational studies are usually not focused enough to answer research questions.
e. Most people refuse to participate in observational studies.
b. Consumers tend not to be truthful or spontaneous in this kind of situation.
You are conducting a test to quantify the point at which adults will purchase flavored milk. So far, almost no adults are purchasing flavored milk. Which step would you take to define the limit at which interest in flavored milks becomes strong?
a. Cut the price of the flavored milk in half.
b. Offer a rebate for flavored milk that can be redeemed at a later date.
c. Lower the price in small increments and monitor sales at each price.
d. Offer a buy one, get one free sale.
e. Give away free samples of the flavored milk and raise its price.
c. Lower the price in small increments and monitor sales at each price.
You have decided to conduct a survey. One of the options you are considering is a survey that is features mail questionnaires. Which of the following correctly identifies a reason for why you would choose not to conduct a mail questionnaire?
a. Mail questionnaires are expensive to conduct.
b. It is difficult to find survey subjects to participate in mail questionnaires.
c. The data collected in mail questionnaires is hard to analyze.
d. The data for mail questionnaires is unreliable.
e. Only a small percentage of people respond to mail questionnaires.
e. Only a small percentage of people respond to mail questionnaires.
You are trying to decide whether to conduct telephone interviews or live, face-to-face interviews with potential flavored milk buyers. Which statement best clinches the case for telephone interviews?
a. Telephone interviews are more personal than face-to-face interviews.
b. Telephone interviews are less expensive to conduct than face-to-face interviews.
c. A single telephone interviews produces more data than a face-to-face interview.
d. People are likely to be more truthful in a telephone interview.
e. Data for telephone interviews is more reliable than data for face-to-face interviews.
b. Telephone interviews are less expensive to conduct than face-to-face interviews.
You are passing out questionnaires for providing background information about subjects in a focus group. Which of the following questions would be least appropriate in your background information questionnaire?
a. Are you a milk drinker right now?
b. Do you prefer flavored milk with or without coloring?
c. How much did you enjoy drinking flavored milk when you were young?
d. Are flavored milk products for children only?
e. What is the typical image that you see for a person who drinks flavored milk?
b. Do you prefer flavored milk with or without coloring?
You are testing different slogans to go along with a poster that shows a photo of two healthy young adults taking a break on the tennis court, drinking flavored milk. Which slogan best communicates your primary goal of making milk seem attractive to active, health-conscious adults?
a. TriState Chocolate Milk: Refreshingly Sweet.
b. TriState Chocolate Milk: Not Just for Healthy Kids Anymore
c. TriState Chocolate Milk: Lower in Calories than Any Soft Drink
d. TriState Chocolate Milk: Any Fresher and It Would Say Moo
e. TriState Chocolate Milk: Your Reward for a Job Well Done
b. TriState Chocolate Milk: Not Just for Healthy Kids Anymore
The real value of marketing research and marketing information lies in how it is used—in the ______ that it provides.
a) Customer insights
b) Profits
c) Sales
d) Data
a) Customer insights
A pet store offers shoppers a membership card. Members receive monthly mailings featuring coupons for the specific brand of pet food they purchased previously. This is made possible by:
a) Survey data
b)The internal database
c) Competitive intelligence
d) Observational research
b)The internal database
Part of your job entails monitoring several blogs to learn what consumers are saying about your products as well as your competitors’. You are gathering:
a) Experimental data
b) Causal data
c) Focus group intelligence
d) Marketing intelligence
c) Focus group intelligence
A bank surveys mortgage and loan holders to learn their household size, income, age, and marital status. The bank has engaged in:
a) Descriptive research
b) Casual research
c) Exploratory research
d) Focus group research
a) Descriptive research
If your firm was interested in learning which of two television advertising campaigns would be most effective, the company should conduct:
a) Ethnographic research
b) Secondary research
c) Observational research
d) Experimental research
d) Experimental research
When survey data must be collected quickly, the best data collection technique would be:
a) Group interviewing
b) Telephone surveying
c) Online surveying
d) Mail surveying
c) Online surveying
Maria is selecting a research sample by finding and interviewing 25 males and 25 females in each of four geographic regions. Which type of sample is Maria using?
a) Cluster sample
b) Convenience sample
c) Simple random sample
d) Quota sample
d) Quota sample
Pupillometer tests in advertising measure a consumer’s pupil dilation as he or she views an advertisement. A pupillometer is an example of a(n):
a) Mechanical device
b) Questionnaire
c) Secondary device
d) Survey device
a) Mechanical device
______ allows an organization’s suppliers, customers, and resellers to update account information, check purchases, and more.
A) CRM
b) An intranet
c) An extranet
d) A marketing intelligence system
c) An extranet
Two major public policy and ethics issues in marketing research are intrusions on consumer privacy and:
a) Cost of primary data
b) Lack of information availability
c) Misuse of research findings
d) Government interference
c) Misuse of research findings
As the Vice-President of Marketing for Holden-Evan, a global beauty and consumer products company, you have been asked by your superiors to review several existing product lines for growth and downsizing opportunities. Your overall goal is to increase the company’s growth rates and profit margins.
In making your analysis of each product line, you will be using classic a Boston Consulting Group (BCG) Matrix. The BCG matrix has four different categories: a star (high market growth, high market share), a dog (low market growth, low market share), a cash cow (low market growth, high market share), and a question mark (high market growth, low market share)
With a BCG matrix, in which kinds of strategic business units (SBUs) does a company look to invest?
a) dogs and cash cows
b) cash cows and stars
c) stars only
d) cash cow only
e) stars and question marks
e) stars and question marks
2. Holden-Evan’s teen hair dye qualifies as a dog. What would need to change in order for the teen hair dye to be considered a question mark?
a. The hair dye’s market share would need to increase from 0.8 to 1.2.
b. Sales for hair dye would need to equal those of the industry leader.
c. The hair dye’s sales would need to increase at least 40 percent.
d. The market growth rate for teen hair dye would need to increase by a significant amount.
e. The hair dye’s market share would need to increase while its market growth rate decreased.
d. The market growth rate for teen hair dye would need to increase by a significant amount.
3. A member of your team sees a cash cow as a good place to invest money. Do you agree with this suggestion? Explain why or why not.

a. I agree. Cash cows are money makers. Investing in a money maker is a good idea.
b. I agree. Cash cows have large market shares in fast-growing markets. Investment is a good idea.
c. I disagree. Cash cows make money but their markets are not growing so they are not a good place to invest.
d. I disagree. Cash cows made money in the past but they don’t make money now. So a cash cow is not a good place to invest.
e. I disagree. Cash cows make no money now but in the future they may make money. So the time to invest in a cash cow is in the future.

c. I disagree. Cash cows make money but their markets are not growing so they are not a good place to invest.
4. In the BCG matrix, you identified Holden-Evan’s organic skin cream as a question mark because it had a small market share, 5 percent, in a booming market. A competitor has an organic skin cream that has less than half the market share of Holden-Evan’s product, 2 percent. How should this competitor’s organic skin cream be categorized?

a. as a question mark, because it still has a small market share in a booming market
b. as a dog, because its market share is so small
c. as a question mark, because it is impossible to categorize
d. as a combination of a question mark and a dog, because its market share is so small
e. as a dog, because it is impossible to categorize

a. as a question mark, because it still has a small market share in a booming market
5. You have made the decision to divest Holden-Evan’s hair dye for teens, which was judged on the BCG matrix as a dog. Which of the following is the best justfiication for divesting?

a.Dogs tend to create a negative atmosphere within a company.
b.A dog is a drain on money and other business resources.
c.A dog is a drain on business resources, it is hard to sell off, and since it has high market share it is difficult to change or improve.
d.A dog is hard to turn around, it is a drain on business resources, and since it is in slow-growth industry it is unlikely to improve.
e.Dogs are easy to sell off.

d.A dog is hard to turn around, it is a drain on business resources, and since it is in slow-growth industry it is unlikely to improve.