Which type of product does delgado manufacture

PART 1 Multiple Choice Questions

1) According to management guru Peter Drucker, “The aim of marketing is to ________.”

A) maximize profits of the company

B) emphasize customer wants and not customer needs

C) make selling unnecessary

D) fulfill unrealistic customer expectations

E) sell products

2) When marketers set low expectations for a market offering, they run the risk of ________.

A) disappointing loyal customers

B) having to use an outside-in rather than an inside-out perspective

C) failing to attract enough customers

D) failing to understand their customers’ needs

E) incorrectly identifying a target market

3) Selecting which segments of a population to serve is called ________.

A) market segmentation

B) positioning

C) customization

D) target marketing

E) differentiation

4) Railroads were once operated based on the thinking that users wanted trains offering the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept.

A) product

B) production

C) selling

D) marketing

E) societal marketing

5) Which of the following is NOT a characteristic of customer-driven marketing?

A) Companies understand customer needs even better than customers themselves do.

B) Customers are unaware of their needs.

C) Products are created that meet both existing and latent needs, now and in the future.

D) Customers know what they want.

E) Customers don’t know what is possible.

6) Which of the following statements is true about creating customer loyalty and retention?

A) Losing a customer means losing the entire stream of purchases the customer would make over a lifetime of patronage.

B) Customer delight creates a rational preference and not an emotional relationship with the brand.

C) The aim of customer relationship management is to focus solely on customer delight.

D) Losing a customer hardly makes a difference to a company’s sales.

E) The aim of customer relationship management is to focus solely on customer satisfaction.

7) Which of the following is true with regard to strategic planning?

A) At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company.

B) A strategic plan deals with a company’s short-term goals.

C) The focus of strategic planning is to define a game plan for long-run survival and growth.

D) The strategic plan is a statement of an organization’s purpose.

E) Strategic planning involves identifying segments of consumers with identical preferences.

8) Which of the following is a market-oriented mission statement?

A) “We empower customers to achieve their dreams.”

B) “We sell jumbo burgers.”

C) “We are an online library.”

D) “We are a low-cost airline.”

E) “We make porcelain figurines.”

9) Which of the following is true with regard to cash cows?

A) They are high-growth, high-share businesses or products.

B) They can be used to help finance the company’s question marks and stars.

C) They require significant cash to maintain market share.

D) They are low-share businesses and products.

E) They do not promise to be large sources of cash.

10) Fun-Spot Fun Park represents a high-growth, high-share business. According to the BCG matrix, it can be classified as a ________.

A) star

B) question mark

C) bear

D) cat

E) dog

11) RedFin manufactures diving equipment that is highly regarded by customers worldwide. Each department in RedFin contributes to its success and can be thought of as a(n) ________.

A) link in the company’s internal value chain

B) separate organization

C) independent subsidiary of the company

D) separate market segment

E) SBU

12) Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________.

A) new product

B) market segment

C) marketing intermediary

D) brand

E) product line

13) ________ analysis is an overall evaluation of the company’s strengths, weaknesses, opportunities, and threats.

A) Porter’s five forces

B) A breakeven

C) A regression

D) A SWOT

E) A cluster

14) Which of the following terms is used to describe the actors and forces outside marketing affecting marketing management’s ability to build and maintain successful relationships with target customers?

A) marketing environment

B) marketing orientation

C) strategic planning

D) target markets

E) marketing mix

15) Which of the following is true with regard to media publics?

A) The primary function of this group is to protect the interests of minority groups.

B) This group carries news, features, and editorial opinion.

C) The primary function of this group is to critique the marketing decisions of companies.

D) This group includes neighborhood residents and community organizations.

E) This group directly influences the company’s ability to obtain funds.

16) The single most important demographic trend in the United States is the ________.

A) changing age structure of the population

B) mobility of families

C) changing family structure of the population

D) increasing number of professional jobs

E) increasing birth rate

17) Which of the following has lost population in the past two decades?

A) California

B) Florida

C) the Western states

D) the Northeast states

E) the Southern states

18) Soon-Yi Park’s chain of travel agencies has identified the lesbian, gay, bisexual, and transgender community as a growing market that spends an increasing percentage of its income on travel. Which of the following would be the LEAST effective component of a marketing plan for Soon-Yi to take advantage of this opportunity?

A) develop a presence on LGBT-oriented social networking sites

B) position his agency as focused on specialized experiences

C) implement a mass marketing campaign

D) place specially-targeted ads in gay-themed publications

E) advertise on LOGO, the cable television network aimed at gays and lesbians and their friends and family

19) Which of the following generational groups is most likely to represent the present owners of cottages surrounding Witmer Lake?

A) Baby Boomers

B) Echo Boomers

C) Gen Xers

D) Lost Generation

E) Millennials

20) Brad works with a reputed retailer and leads a team that collects market information from a wide variety of sources ranging from marketing research studies to monitoring online conversations where consumers discuss Brad’s firm or its products. Brad’s team uses this information to arrive at a better understanding of consumer behavior and their buying motives. This, in turn, allows Brad’s firm to successfully generate more value for consumers. Brad leads the ________ team.

A) product development

B) strategy implementation

C) human resource

D) customer relationship management

E) customer insights

21) The marketing department of a reputed firm wants to improve strategic decision making, track the actions of other players in the market, and provide early warning of opportunities and threats. Which of the following would help the firm achieve its objectives?

A) ethnographic research

B) strategic planning

C) data warehousing

D) competitive marketing intelligence

E) customer relationship management

22) Which of the following is the final step of the marketing research process?

A) developing the research plan

B) implementing the research plan

C) interpreting and reporting the findings

D) selecting a research agency

E) defining the research objectives

23) While looking for ideas on how to craft a user-friendly dishwasher, the designers of a dishwasher-manufacturing company spent 10 days observing people as they used their dishwashers in their homes. In this instance, the designers were conducting a(n) ________.

A) survey research

B) experimental research

C) quantitative marketing research

D) ethnographic research

E) causal research

24) Which of the following is most likely a disadvantage of focus group interviewing?

A) Focus group interviewing does not connect secondary data with primary data.

B) Focus group interviewing is less flexible compared to mail questionnaires.

C) Consumers in focus groups are always open and honest about their real feelings, behaviors, and intentions in front of other people.

D) Focus group interviewing involves small samples to keep time and costs down, which makes it hard to generalize from the results.

E) The moderator in a focus group interview has poor control over the group of respondents.

25) ________ refers to the measurement of brain activity to learn how consumers feel and respond.

A) Biometrics

B) Demographics

C) Sampling

D) Neuromarketing

E) Psychographics

PART 2

1) Marketing stimuli include all of the following EXCEPT:

A) economic stimuli

B) price stimuli

C) technological stimuli

D) social stimuli

E) cultural stimuli

2) ________ consumers are one of the fastest-growing U.S. population subsegments and are expected to surge to nearly one third of the total U.S. population by 2060.

A) African American

B) Hispanic American

C) Asian American

D) Baby Boomer

E) Millennial

3) ________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday for the Los Angeles Lakers.

A) Membership groups

B) Aspirational groups

C) Leading adopters

D) Subcultures

E) Reference groups

4) A ________ consists of the activities an individual is expected to perform according to the people around him/her.

A) motive

B) role

C) lifestyle

D) life cycle

E) perception

5) Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a ________.

A) motive

B) life-cycle stage

C) self-concept

D) brand personality

E) self-actualization need

6) ________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

A) Motivation

B) Perception

C) Dissonance

D) Learning

E) Self-actualization

7) George is buying his first house. He has spent a month looking at houses and comparing attributes such as price and location. He has contacted several real estate agents to look at different types of houses. George is most likely exhibiting ________.

A) variety-seeking buying behavior

B) complex buying behavior

C) consumer capitalism

D) dissonance-reducing buying behavior

E) marketing myopia

8) Business buyer behavior refers to the ________.

A) buying behavior of consumers who buy goods and services for personal consumption

B) buying behavior of the organizations buying goods and services for use in the production of other products and services that are sold, rented, or supplied to others

C) buying behavior of consumers who rely on small retailers for the regular supply of provisions

D) decision process by which business buyers determine which products and services their organizations need to purchase

E) strong affinity of businesses for value-for-money deals

9) Jeremy’s, a handbag manufacturer in Lower Manhattan, procures a large stock of leather in anticipation of brisk sales of handbags during December. This is an example of a(n) ________ demand.

A) composite

B) derived

C) primary

D) latent

E) inelastic

10) A marketer wanting to determine business buyer behavior is most likely to ask which of the following questions?

A) Are buyers sensitive toward price changes in consumer markets?

B) What are the major influences on buyers?

C) Are niche markets more profitable than mass markets?

D) How do interpersonal factors affect organizational performance?

E) Is the role of gatekeepers relevant in the international business environment?

11) Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed servers and computers for his company, he decided to order these from a local vendor who was offering attractive discounts. In this instance, Peter ________.

A) faces a new task situation

B) faces a modified rebuy situation

C) is most likely to benefit the most from reverse auction

D) faces the need for product differentiation

E) plans to attract customers by offering products at below-market prices

12) Jason Perkins has the informal power to approve the final suppliers in his organization. In other words, Jason plays the role of a(n) ________ in his organization’s buying center.

A) gatekeeper

B) decider

C) buyer

D) influencer

E) user

13) Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes and consumer demands, for the next financial year six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of Alpha’s steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but the major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of Alpha’s suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at Alpha who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. The warehouse foreman gave inputs regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. In this scenario, which of the following had the greatest influence on the business buying behavior at Alpha Stampings?

A) individual preferences

B) organizational structure

C) interpersonal influences

D) technological changes

E) cultures and customs

14) ________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

A) Mass customization

B) Market targeting

C) Market segmentation

D) Differentiation

E) Positioning

15) A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today’s world. This is an example of ________.

A) cause marketing

B) stereotyping

C) niche marketing

D) scapegoating

E) positioning

16) Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

A) user status

B) degree of loyalty

C) income

D) geographic location

E) benefit-seeking attitudes

17) Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

A) income

B) age-group

C) occasion

D) benefit

E) cross-market

18) Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben’s talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop’s showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon’s enthusiasm and the recent sales were enough to change his mind. With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! “I figured business would slow down after that,” Ruben stated, “but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business.” Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore’s promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. “I had to get a grip on the magnitude of this project,” Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers. “At this point, I had set up an assembly line in a rented building,” Ruben explained. “I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials.” Ruben paused, “But I can’t take the Elmore project for granted. It might not always be there. I’ll have to have a good alternate plan if that day comes.” In the scenario, Ruben has segmented his market based on ________.

A) geography

B) benefits sought

C) occasion

D) degree of loyalty

E) demographics

19) Which of the following is a disadvantage of using a differentiated marketing strategy?

A) generates far lower sales compared to an undifferentiated marketing strategy

B) customer loyalty is negatively impacted and difficult to obtain

C) the costs of doing business increase

D) quality control problems increase

E) product safety decreases

20) ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

A) Liabilities

B) Services

C) Brands

D) Consumer products

E) Specialty products

21) A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania from locally grown wood, is an example of a ________.

A) convenience product

B) capital item

C) specialty product

D) service

E) product attribute

22) A company that uses well-known celebrities to help sell its products is using ________ marketing.

A) interactive

B) internal

C) social

D) person

E) organization

23) Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended. Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it. Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple- cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben’s biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts. “We make an excellent product,” Ruben Delgado stated, “and we honor a good guarantee on everything we sell. But let’s face it—we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool.” The Delgado brand was fast-becoming synonymous with top- notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after. Which type of product does Delgado manufacture?

A) industrial

B) convenience

C) specialty

D) shopping

E) unsought

24) What are the two dimensions of product quality?

A) consistency and level

B) performance and conformance

C) design and innovation

D) conformance and style

E) feature and design

25) Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of ________.

A) line filling

B) social marketing

C) market diversification

D) negative brand equity

E) person marketing

PART 3

1) Acquisition refers to ________.

A) the buying of a whole company, a patent, or a license to produce someone else’s product

B) an agreement between two or more commercial companies to produce a common product

C) a partnership between two companies to produce a product in different countries by sharing risks

D) investments made in a country’s businesses by foreign citizens, often in the form of stocks

E) the development of original products, product improvements, product modifications, and new brands through the firm’s own product development strategies

2) Which of the following is the most likely reason that employees regularly attend trade shows and seminars?

A) to analyze the product life cycle

B) to test new product concepts

C) to get new product ideas

D) to imitate competitors’ products and strategies

E) to implement a team-based new product development approach

3) JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.

A) idea

B) displacement

C) image

D) activation

E) placement

4) Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new product development process.

A) business transformation

B) test marketing

C) business analysis

D) business process reengineering

E) concept testing

5) Which of the following involves costs that most likely occur during the commercialization stage of new product development?

A) building or renting a manufacturing facility

B) paying target customers for product feedback

C) determining the product’s planned distribution

D) developing a prototype of the product

E) identifying target markets

6) Evelyn’s ________ is the practical use of solar power in a vacuum cleaner that is designed to effortlessly vacuum clean the floors of on-the-go and elderly consumers.

A) product placement

B) product concept

C) product image

D) product idea

E) virtual product

7) A style is best defined as a ________.

A) currently popular trend in retail goods

B) popular consumer taste at a given time

C) temporary period of unusually high sales

D) short-term component of the marketing mix

E) basic and distinctive mode of expression

8) ________ is the only element in the marketing mix that produces revenue.

A) Price

B) Product

C) Place

D) Fixed costs

E) Variable costs

9) A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance?

A) target pricing

B) markup pricing

C) cost-based pricing

D) value-based pricing

E) break-even pricing

10) ________ involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.

A) Value-based pricing

B) Competition-based pricing

C) Cost-based pricing

D) Penetration pricing

E) Break-even pricing

11) As production moves up, the average cost per unit decreases because ________.

A) variable costs decrease

B) of increasing diseconomies of scale

C) fixed costs are spread over more units

D) overhead costs decrease

E) revenue increases

12) The simplest pricing method is ________ pricing.

A) value-based

B) fixed cost

C) cost-plus

D) target return

E) competition-based

13) As a manufacturer increases the price, ________.

A) efficiency drops

B) the break-even volume drops

C) competition is minimized

D) the total costs increase

E) the profit margin shrinks

14) Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing.

A) comparative

B) competitive

C) market-skimming

D) market-segmentation

E) cost-plus

15) Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors’ prices?

A) by-product pricing

B) product bundle pricing

C) optional product pricing

D) captive product pricing

E) product line pricing

16) Cellpoint uses two-part pricing for its long-distance call charges. Because this is a service, the price is broken into a fixed fee plus a(n) ________ usage rate.

A) fixed

B) variable

C) standard

D) market

E) optional

17) A(n) ________ is a straight reduction in price on purchases during a stated period of time or of larger quantities.

A) allowance

B) free sample

C) discount

D) tax credit

E) quota

18) In return for participating in Honda advertising and sales support programs, Honda dealerships are rewarded with payments or price reductions, which are known as ________.

A) seasonal discounts

B) functional allowances

C) cash discounts

D) promotional allowances

E) trade-in allowances

19) La Belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at $99 per item. La Belle reasons that customers in search of luxury goods will prefer its product because they are more likely to believe high price indicates superior quality. What price adjustment strategy is evident in its reasoning?

A) seasonal pricing

B) time-based pricing

C) captive product pricing

D) psychological pricing

E) location-based pricing

20) Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers?

A) factory-supply networks

B) downstream partners

C) resource banks

D) upstream partners

E) supply channels

21) The greater the number of channel levels in a marketing channel, the ________.

A) less distance between producer and end-consumer

B) greater the channel complexity

C) less time it takes for products to reach end-consumers

D) greater the control producers have over the distribution of their products

E) greater the control producers have over the demand of their products

22) ________ are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals.

A) Customer relationship management systems

B) Distribution channels

C) Partner relationship systems

D) Consumer bases

E) Buying centers

23) Which of the following is a major type of vertical marketing system?

A) corporate

B) conventional

C) multilevel

D) intrinsic

E) extrinsic

24) A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments.

A) conventional distribution

B) corporate vertical marketing

C) horizontal marketing

D) administered vertical marketing

E) multichannel distribution

25) ________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible.

A) Direct

B) Intensive

C) Inclusive

D) Exclusive

E) Selective

PART 4

1) ________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

A) Franchising

B) Retailing

C) Brokering

D) Wholesaling

E) Disintermediation

2) A ________ is a small store, located near a residential area that is open long hours, seven days a week, and carries a limited line of high-turnover goods.

A) convenience store

B) chain store

C) department store

D) supermarket

E) specialty store

3) ________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.

A) Category killers

B) Factory outlets

C) Specialty stores

D) Superstores

E) Power centers

4) Stop-N-Go, 7-Eleven, and Circle K are examples of ________.

A) department stores

B) convenience stores

C) category killers

D) specialty stores

E) supermarkets

5) Daizy’s is a shop that carries only plus-size clothing. According to this information, Daizy’s differentiates itself from its competitors based on ________.

A) service mix

B) pricing

C) product assortment

D) store atmosphere

E) distribution strategy

6) A ________ generally contains between 5 and 15 stores. It is close and convenient for consumers, usually contains a supermarket, perhaps a discount store, and several service stores such as a dry cleaner, a drugstore, and a hardware store.

A) regional shopping center

B) community shopping center

C) neighborhood shopping center

D) warehouse club

E) factory outlet

7) Which of the following is most likely true about shoppers who prefer to shop at “lifestyle centers?”

A) They use coupons.

B) They prefer upscale stores.

C) They prefer indoor shopping locations.

D) They rarely dine out in expensive restaurants.

E) They are motivated by deals on last year’s merchandise.

8) A company’s total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this set of communications tools?

A) the product mix

B) product line filling

C) the promotion mix

D) the price mix

E) horizontal diversification

9) Which of the following statements is true regarding today’s marketing communications?

A) More marketers are shifting away from narrowly defined micromarkets and moving toward mass marketing.

B) More customers have started relying on marketer-supplied information rather than finding out information on their own.

C) Network television, magazines, newspapers, and other traditional mass media continue to increase their dominance.

D) Focused marketing programs, which are designed to build closer relationships with customers in more narrowly defined micromarkets, are no longer used by marketers.

E) Today’s consumers are better informed about products and services.

10) Excel Enterprises uses a Web site, online social networks, and print advertisements to promote its products. Since Excel Enterprises practices integrated marketing communications, all these different brand contacts maintain _________ in design and tone.

A) variety

B) simplicity

C) creativity

D) consistency

E) flexibility