Which of the following statements regarding standard test marketing is correct?

Gable Brothers Inc. is trying to find a viable market for its new fountain pen. After conducting a psychographic segmentation, it found that the segment of potential consumers is so small that the volume in sales would not be profitable for the company. Therefore, top management has decided to not release the product into the market. In the context of the stages of the market segmentation process, the company is currently:

dividing markets on relevant dimensions.

delineating the firm's current situation.

determining consumer needs and wants.

deciding the market segmentation strategy.

An organization's routine purchase changes when a supplier discontinues a product. In such a situation, which purchasing approach would the organizational buyer be most likely to use?

New task rebuy

Straight task buy

Straight rebuy

Modified rebuy

In the context of channels of distribution, ________ are used in organizational markets in cases where manufacturers do not wish to have their own sales forces.

jobbers

facilitators

agents

distributors

Which of the following best describes a strategic alliance?

It is an alliance with experts outside an organization who are called in to help the organization generate new product ideas.

It is a long-term partnership between two organizations designed to accomplish the strategic goals of both parties.

It is a team consisting of members from different functional areas of an organization that work together to solve a strategic issue.

It is a collaboration of two different departments within an organization to implement the organization's strategic plan.

Which of the following types of discounts is offered to channel members for purchasing and marketing a large number of units?

Loyalty discounts

Slotting allowances

Promotional allowances

Quantity discounts

Which of the following statements best describes primary data?

Data collected through government reports or syndicated data providers

Data collected by an organization specifically for the research problem under investigation

Data provided by the government, such as U.S. census data

Data that have previously been collected for other purposes but can be used for the problem at hand

In which of the following stages of the new product development process is the new product proposal evaluated and responsibility for a project assigned to a project team?

Test marketing

Project planning

Idea screening

Product development

MNM Foods Inc. manufactures jellies that are made out of gelatin in various fruit flavors. However, its sales dipped significantly in the last quarter. Research reveals that a significant amount of health benefits can be associated with the consumption of jellies. MNM Foods incorporates new promotion strategies to project the newly discovered health benefits. This is an example of:

improvements and revisions of existing products.

additions to existing product lines.

new-to-the-firm products.

product repositionings.

In terms of uniformity, which of the following is a difference between services and goods?

Owing to customer non-participation, services are often linear, while goods are non-linear.

Because of high involvement on the part of a buyer, services tend to be unique, with the quality likely to vary, while the quality and variance from standards of goods can be corrected before purchase.

Services often involve a short-term, impersonal relationship between buyer and seller, while goods often involve a personal, long-term relationship.

Services can be inventoried uniformly, while goods face stockouts due to their heterogeneous nature.

Which of the following provides valuable information about what a target market thinks about a product and what it is worth to them?

Slotting preference

Price elasticity

Promotional discounting

Value substitution

A computer manufacturer markets its computers through a variety of methods—telemarketing, catalog selling, cable selling, and online selling—that do not involve the use of intermediaries. Which of the following channels or types of marketing is the manufacturer using?

Intermediary marketing

Administered marketing

Horizontal channel

Direct channel

Sunset Hotels provides soft skills training to its employees by imparting lessons on basic communication skills, housekeeping techniques, body language, and basic standards of dressing. In this case, on which of the following critical components of internal marketing is Sunset Hotels focusing?

Careful selection process in hiring employees

Significant modeling by managers

Emphasis on teaching employees to have good attitudes

Energetic follow-through process

In odd-even pricing, ________.

prices are set a few dollars or a few cents below a round number to encourage customers to think of the products as less expensive

prices are set exclusively on the cost of the product and historical prices

a high price is charged to create a signal that the product is exceptionally fine

several products are sold together at a single price to connote value and convenience for customers

________ can be defined as the desire to become everything one is capable of becoming.

Self-actualization needs

Physiological needs

Esteem needs

Belongingness and love needs

________ are products that extend current product lines to current markets.

Additions to existing product lines

Improvements and revisions of existing products

New-to-the-world products

New-to-the-firm products

Which of the following is most likely to be a reason for a firm to price a product above competition?

The demand for the firm's product is price elastic.

The firm is selling a homogeneous product.

The firm's product is inferior in comparison to its counterparts.

The firm is a price leader in the industry.

Shannon Cruz is very particular about the kind of blue jeans she wears. She refuses to buy anything other than Reeve's 201 and is very keen about finding that particular fit since her local store does not have it. In this scenario, Reeve's 201 is an example of a(n) ________.

intangible good

convenience good

specialty good

intermediate good

Stacy, a marketing manager at a beverage manufacturing firm, conducts a customer survey to determine the reason for a dip in the sales of Zeal, a cola, in the last quarter. The survey reveals that there is an immediate customer demand requiring the use of organic ingredients to Zeal. The firm decides to enhance Zeal with the introduction of organic ingredients. This new product would fall into the category of ________.

new-to-the-world products

new-to-the-firm products

improvements and revisions of existing products

additions to existing product lines

Leo Music Café regularly holds concerts that feature upcoming as well as well-acclaimed artists. The café is a big hub for music lovers. However, the café lacks the facility of online booking and only allows bookings at the venue. The manager of the café is reluctant to adopt the latest technology. This implies that the management at Leo Music Café has:

a limited view of marketing.

adopted vertical integration.

no obsolescence.

no sense of creativity.

Paula sells a scanner that converts large documents to an electronic format for editing and printing items up to six feet long and four feet wide. She secures an appointment with the marketing manager of a large department store chain that had been identified by her sales force as a prospect. Her plan is to demonstrate the product's unique features. However, as soon as the meeting starts, the manager says, "I am the regional head for all the buying that this chain does. What made you attempt your sales pitch with me? You should have met one of my subordinates first." Based on which of the following questions of the qualifying process is Paula likely to deem the manager as a lead, not a true prospect?

Is the lead eligible to buy?

Does the lead have the ability to pay?

Does the lead have a want or need that can be satisfied by the purchase of Paula's products or services?

Can the lead be approached favorably?

In the context of channels of distribution, ________ are used in organizational markets when there is a large number of buyers but each purchases a small amount of a product.

retailers

agents

wholesalers

distributors

The major goal of most test marketing is to:

identify the location for a new store.

evaluate store layouts of a new store.

estimate the future sales potential of new products.

establish the placement of new products.

Which of the following statements regarding the strategic goals of marketing communications is most accurate?

Marketing communications designed to create awareness are especially important for existing products rather than new products.

Unlike producers, retail stores and other organizations do not use communications to build positive images.

An important goal of marketing communications is to build a relationship with the organization's channel members.

It costs far more to retain an existing customer than to attract a new customer.

TradeEx Incorporation, which deals with financial services, employs individuals and trains them intensively for a month. The training sessions include enhancing their knowledge of various financial services in the market, the changing trends of the stock market, and the fast-moving business environment. The employees are also trained on how to reach their sales targets. These steps taken by the firm in training new employees imply that the firm focuses on:

teaching employees to have good attitudes.

significant modeling by managers.

a careful selection process in hiring employees.

an energetic follow-through process.