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Chapter 5 - MCQs Practice 1.

Which one of the following statements about the steps in the target marketing process is true? a. The first step in the target marketing process is to set marketing objectives. b. There are four steps in the target marketing process. c. The second step in the target marketing process is the identification of all segmentation variables. d. The final step in the target marketing process is positioning. e. all of the above

2. Recognising that some people eat cereal because of its nutritional value, some because it is easy to prepare, and some because it tastes good, is part of the __________ process. a. acculturation b. segmentation c. customisation d. market aggregation e. positioning

3. A basic assumption of __________ is that people who live near one another share similar characteristics. a. psychographics b. positioning c. demographics d. geodemographics e. geography 4. Which of the following is not an example of a demographic variable that can be used in segmentation? a. lifestyle b. income and social class c. race and ethnicity d. gender e. age 5. A retailer targeting prospective brides and grooms between the ages of 21 and 40 is using __________ segmentation to define its target market. a. lifestyle b. behavioural c. socioeconomic d. demographic e. psychographic

6. The group of consumers born between 1977 and 1994 are often called __________. a. baby busters b. the silent majority c. Generation Y d. tweens e. Generation X 7. When companies offer baby nappies in pink or blue, this is an example of segmenting by __________. a. age b. lifecycle c. lifestage d. gender e. family status

8. __________ variables segment markets in terms of shared activities, interests, and opinions. a. Demographic b. Ethnographic c. Geodemographic d. Socioeconomic e. Psychographic

9. Magazines targeted to people who compete in triathlons, those who enjoy cooking, and those who love knitting use __________ segmentation variables. a. demographic b. ethnographic c. geodemographic d. socioeconomic e. psychographic

10. Fisher & Paykel, the household appliance manufacturer, offers customers the option of adding coloured panels to its Elite range of refrigerators, stoves and dishwashers to allow matching with consumers kitchen dcor. Fisher & Paykel also offers the Home Stuff, a basic range of household appliances that provide value for money by offering the main features that all customers would want. Fisher & Paykel is pursuing a __________ targeting strategy with its Elite range and a __________ targeting strategy with its Home Stuff range. a. differentiated; undifferentiated b. undifferentiated; custom c. custom; undifferentiated d. concentrated; custom e. differentiated; concentrated

Chapter 5 Answers: 1d, 2b, 3d, 4a, 5d, 6c, 7d, 8e, 9e, 10c

Chapter 6 - MCQs Practice 1. Which of the following adjectives best describes a product classified as a good? a. nonperishable b. convenient c. disposable d. tangible e. heterogeneous

2. The __________ for a guest paying for a nights stay at a hotel is rest and sleep. a. generic product b. core product c. value-deliverable product d. augmented product e. customised benefit

3. MRO products are goods that businesses use for __________. a. management, research, and order-processing b. marketing, relationship-building, and operation c. maintenance, research, and organisation d. maintenance, repair, and operation e. marketing, research, and organisation

4. Pepsi-Colas development of Wild Cherry Pepsi, a cherry-flavoured soda, is an example of a __________. a. dynamically continuous innovation b. nonradical innovation c. competitive innovation d. continuous innovation e. discontinuous innovation

5. Even though most people in the original target market for electric toothbrushes already knew how to brush their teeth, consumers still had some learning to do in order to make the best use of the new brushing technique. The electric toothbrush is an example of a __________. a. dynamically continuous innovation b. nonradical innovation c. competitive innovation d. continuous innovation e. discontinuous innovation

6. Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring its ability to sell other Mercedes cars for $100,000 or more. Mercedes implemented a/n __________. a. downward line stretch b. value stretch c. upward line stretch d. product line contraction strategy e. filling-out strategy 7. Procter & Gamble makes several different kinds of shampoo, but it did not have a dandruff shampoo designed specially for women until it added Pro-V anti-dandruff shampoo. This is an example of product extension through a/n __________. a. downward line stretch b. value stretch c. upward line stretch d. product line contraction e. filling-out strategy 8. Disney allowed a paint manufacturer to produce paint using the Disney brand name. Disney paint is an example of __________. a. market franchising b. licensing c. trademarking d. copyright infringement e. piggybacking

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McCains decides to develop a new microwaveable range called Funky Fries. The fries are sold in single serving containers and are available in flavours such as Cheese and Onion, Thai Curry, Mexican Spicy and Cocoa Crispers. Funky Fries are an example of a __________. a. dynamically continuous innovation b. nonradical innovation c. competitive innovation d. continuous innovation e. discontinuous innovation

10. Joe is usually the first amongst his friends to purchase the latest consumer electronics once they hit the shelves. Joe would be considered a __________. a. laggard b. late majority adopter c. early majority adopter d. early adopter e. middle majority adopter

Chapter 6 Answers: 1d, 2b, 3d, 4d, 5a, 6a, 7e, 8b, 9d, 10d

Chapter 7 MCQs Practice 1. The demand curve __________. a. is used to illustrate the effect of price on the quality of goods b. is always graphically depicted by a straight line c. shows the quantity of product customers will buy in a market during a period of time even if other factors change d. usually slopes upward and to the right e. shows the relationship between product demand and product price

2. Why do marketers consider prestige products to be an exception to the law of demand? a. The demand curve for prestige products slopes downward and to the right. b. Increasing the price of prestige products can make them seem more desirable. c. Demand for prestige products often is much lower than supply. d. Prestige products like diamonds, sapphires, and emeralds are nonrenewable resources. e. Customers are not oblivious to the price of prestige products like they are to the price of other products. 3. What is the first step an organisation takes to estimate its potential sales? a. Determine maximum production levels. b. Conduct a survey of buyers knowledge. c. Estimate demand for the entire product category in the market the company serves. d. Determine how to expand market share. e. Develop demand curves for different price levels.

4. For a skimming price to be successful __________. a. consumers must be price sensitive b. supply must exceed demand c. demand must be stable d. the producer must use intensive distribution e. there should be little chance that competitors can get into the market quickly

5. The package for X-Factor, a new Energy Drink promoted a limited time price reduction. The manufacturer of X-Factor used __________. a. trial pricing b. comparative pricing c. specialty pricing d. price skimming e. commodity pricing

6 With __________, the seller pays both the cost of loading and transporting the product to the customer. f. captive pricing g. uniform delivered pricing h. F.O.B. delivered i. zone pricing j. F.O.B. origin

7 The __________ was introduced to promote competition and fair trading and protect consumers. a. Trade Practices Act 1974 (Cth) b. Trade Particulars Act 1974 (Cth) c. Trade and Commerce Act 1974 (Cth) d. Trade Practices Act 1964 (Cth) e. Trade Practices Act 1974 (Qld) 8 When Joes Java Cafe raised the price of latt, Joe noticed a substantial change in how many cups of latt he sold daily. When he reduced the price of a cup of latt, his sales of latts increased. From this information, you can assume the demand for cups of latt is __________. a. static b. supply-driven c. inelastic d. elastic e. synergistic

9 Hunting bows are often priced low, and retailers of archery equipment make their profit on higher-margin high-priced arrows. This is an example of __________. a. price skimming b. comparative pricing c. captive pricing d. price bundling e. penetration pricing 10 A local restaurant sells lunch entrees for $7.95, $9.95, and $11.95. This is an example of ________. a. price discrimination b. odd pricing and price lining c. dynamic pricing and price lining d. price discrimination and predatory pricing e. even pricing and price lining

Chapter 7 Answers: 1e, 2b, 3c, 4e, 5a, 6c, 7a, 8d, 9c, 10b

Chapter 8 - MCQs Practice 1. Marketers often hire celebrities as spokespersons for their products, thus adding excitement to the __________ of the message. a. source b. medium c. feedback d. decoding e. noise 2. __________ is for many the most familiar and visible element of the promotion mix. It is nonpersonal communication from an identified sponsor using mass media. a. Personal selling b. Advertising c. Public relations d. Viral marketing e. Interactive marketing

3. An ad for a specific brand of cereal is an example of __________. a. product advertising b. a sales promotion c. one-to-one communication d. institutional advertising e. direct selling

4. With the __________, promotional goals are identified and sufficient funds allocated to accomplish them. a. top-down budgeting technique b. percentage-of-sales method c. competitive-parity method d. bottom-up budgeting technique e. objective-parity method

5. A company using a push strategy is __________. a. relying on sales promotions aimed at getting consumers to buy larger quantities of their products b. allocating most of its promotional budget to advertising in newspaper, magazines, and television c. seeking to move its products through the channel by convincing channel members to offer the products and entice their customers to select these items d. promoting a product in the maturity stage of its product life cycle e. counting on consumers to learn about and express desire for a product, thus convincing retailers to stock the items

6. __________ take on one of two forms: discounts and increasing industry visibility. a. Trade promotions b. Trade shows c. Incentive programs d. Cooperative promotions e. Special/bonus packs 7. An ad in a professional journal targeted at dentists asked them to recommend Colgate toothpaste to their patients. It offered toothpaste samples that dentists could buy at cost to give to their patients to encourage patients to take better care of their teeth. The manufacturer of Colgate toothpaste was using __________. a. viral marketing b. guerilla marketing c. a push strategy d. public relations advertising e. a pull strategy A company producing flavoured vodkas reimburses bar owners who prominently display the vodka and use it in cocktails of the day. The company is providing the bar owners with a __________. a. shelf allowance b. bonus pack c. coupon d. promotional reinforcer e. bundled promotion Business owner Mark often wears a t-shirt given to him by the owner of Insight Advertising, a company Mark does business with. The shirt has the advertising agencys logo on it as well as its address, phone number, and Web site. The shirt is an example of a/n _________. a. incentive product b. sample c. bonus pack d. promotional product e. premium

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10. When customers purchase nine regular priced pizzas, the tenth one is free. This is an example of a __________. a. trade promotion b. promotional product c. specialty pack d. premium e. frequency program Chapter 8 Answers: 1a, 2b, 3a, 4d, 5c, 6a, 7c, 8a, 9d, 10e