Question 1

During 2010,Macmoo completed fewer real estate transactions than it did during any similar time period during the last five years.Still,the Marketing Director claims that its marketing efforts led to very positive financial results for Macmoo.Which of the following,if true,would resolve this seeming discrepancy?
A) In 2010, Macmoo spent more on advertising than it did in 2009.
B) In 2010, Macmoo diverted marketing efforts to support several corporate social responsibility initiatives.
C) Sales projections completed in 2010 predicted even lower sales volume in 2011.
D) In 2010, marketing efforts focused on sales of very expensive properties.
E) In 2010, Macmoo's principal competitors cut back on their marketing expenditures.

Accepted Answer

D)Volume isn't everything. A year with a low number of sales transactions could still be successful if the prices of the properties sold were high. Choice D, therefore, explains how the efforts could have been successful even though relatively few transactions were completed. Choices A and E would deepen the mystery by making the efforts sound less effective. Choice B sounds like a good thing to do, but it would not demonstrate that the efforts led to better financial results. Choice C says that things will get worse, but doesn't explain why.

Question 2

The director of marketing argues that Dinasonic should alter its marketing strategy in different countries by adapting its methods of advertising.Which of the following,if true,would support this position?
A) Dinasonic has won awards for its advertising campaigns.
B) Consumers in most countries are attracted to American consumer goods.
C) Laws regulating advertising vary between different countries.
D) Dinasonic has several sales managers experienced in international sales.
E) The company is planning to subcontract some of its international sales operations.

Accepted Answer

C)If laws regulating advertising differ between different countries, this increases the likelihood that the company will need to adapt its advertising to comply with local regulations. Choices A and B would weaken the case that Dinasonic should adapt its advertising to different markets. Choices D and E are not relevant to whether the company's advertising needs to be adapted to local markets.

Question 3

Which of the following,if true,would weaken the CEO's position?
A) Young males have shown strong brand loyalty to the current market leader in energy drinks.
B) Young males are especially likely to be opinion leaders on many lifestyle issues.
C) Clothing companies typically segment more precisely than beverage companies.
D) Even effective targeting does not guarantee success when it is followed by ineffective positioning.
E) As compared to other groups, young males spend a high percentage of their income on discretionary purchases.

Accepted Answer

A)The CEO wants to market to young males, but if those people are very loyal to another brand, Choice A, then marketing to them sounds like a waste of resources. Choices B and E could only strengthen the CEO's position. Choice C:Clothing companies are irrelevant. Choice D speaks to the effects of doing targeting well, but the issue here is how to target well.

Question 4

Explain the difference between demographic variables and psychographic variables.

Accepted Answer

The answer of Explain the difference between demographic variables and...

Question 5

The president of DVD Heaven has been talking to several other business owners,and now expresses some concerns over developing the e-commerce side of the business.The vice president argues that it is essential for continued growth,but the president argues that there are too many consumer concerns.Which of the following statements,if true,would NOT support the argument being made by the president regarding consumer concerns?
A) Fraudulent businesses are being set up and run on the Internet. Many consumers would rather enter a building that houses a business they know really exists.
B) Identity theft and the theft of credit card numbers can occur when ordering online.
C) Privacy can be compromised on the Internet, and unethical e-businesses can track or sell sensitive information such as buying patterns.
D) College students are five times more likely to order over the Internet than older adults.
E) Customers like to see and feel products before ordering them.

Accepted Answer

D)Choice D would not support the president's argument, but rather the vice president's for expanding the e-commerce side of the business. Younger adults are more comfortable with all aspects of Internet buying and selling, and since DVD Heaven caters to college students, its customers and potential customers would already be comfortable with Internet ordering. Choices A, B, C, and E would all support the president's argument about consumer Internet concerns. Fraudulent businesses, identity theft, privacy issues, and wanting to actually see and hold purchases are all consumer concerns.

Question 6

Which of the following practices would support the CEO's argument?
A) Penelope's Pizza decides to seek a contract with PepsiCo to feature Pepsi soft drinks.
B) Penelope's Pizza employees all must wear the same uniform.
C) Penelope's corporate Web site has links to individual stores for ordering pizza online.
D) All Penelope's Pizza restaurants have an art deco interior design.
E) Penelope's Pizza encourages individual stores to create their own menu options and pricing structure.

Accepted Answer

E)Allowing individual stores to create their own unique menus would not promote a coherent brand perception, particularly with multiple stores within an individual city. Choices A, B, and D:Featuring an iconic soft drink, standardized employee uniforms, and a common interior design are all factors that could be used to promote a coherent national brand. Choice C, a Web site with local links, could be a feature of an integrated marketing strategy or a more localized approach.

Question 7

Which of the following,if true about the real estate industry in general,would weaken the Marketing Director's argument?
A) The demand for houses is higher than it was last year.
B) The supply of houses for sale is lower than it was last year.
C) Sales are generally higher in March than in February.
D) Sales are generally higher in April than in March.
E) In February, home loan interest rates dropped.

Accepted Answer

C)This year, sales were higher in March, but if Choice C is true, and sales are always higher in March, then it is harder to believe that the higher revenues were caused by the advertising campaign. Choice C makes it sound like normal seasonal variation is the best explanation for the March sales. Choices A and B compare this year to last year, but last year is irrelevant because the evidence compares February and March. If the Marketing Director had claimed that improved results this year demonstrate the effectiveness of the campaign, then Choices A and B would be relevant. Choice D compares March to April, but we don't know anything about the April results. Choice E would have helped February sales, which would only strengthen the argument. But since the Web site was most likely active in March as well, Choice E doesn't matter.

Question 8

Which of the following is assumed by the Marketing Director's argument?
A) Real estate transactions can usually be completed in one month.
B) The rates for advertising during the spring are lower than the rates during other times of the year.
C) Other real estate companies increase the amount they spend on advertising during March.
D) The spring advertising campaign is better at promoting general awareness of the Macmoo brand than it is at generating sales leads.
E) The spring advertising campaign is equally effective for commercial real estate and private real estate.

Accepted Answer

A)Revenues are higher in March, when the advertising campaign is going on, but that doesn't mean that the advertising campaign led to higher revenues. In fact, if Choice A isn't true, then the campaign couldn't have led to higher revenues. If the transactions generally take longer than one month to complete, then it would make no sense to claim that advertising in March would lead to revenue in March. That revenue would have to come in later. Choice A, therefore, must be assumed. Choice B would strengthen the case for the advertising campaign if it were true, but it doesn't need to be true in order for the argument to work. Choice C:Other real estate companies don't matter. This is about Macmoo. Choices D and E are both possible, but neither one needs to be true in order for the advertising campaign to be a good idea.

Question 9

The vice president of marketing suggests opening a Facebook page for DVD Heaven,but the president argues that social media sites would not help its business.Which of the following statements,if true,would support the argument made by the president for NOT using social media sites as part of DVD Heaven's advertising strategy?
A) Social media is changing so rapidly that what is relevant today may easily be outdated tomorrow.
B) Search ads combined with social media campaigns lead to higher results for products than just using general search ads.
C) Brands entered in social networks as topics or members of the community can build customer relations.
D) Social media sites can increase buzz and word of mouth simply by conversation about a product or business.
E) Social media sites provide real-time discussions that can include the latest DVDs available or recommendations for DVD purchases.

Accepted Answer

A)Choice A would be the only statement that supports the argument of the president for not using social media advertising, because it is changing so rapidly that strategies developed today may not be relevant in the near future. Choices B, C, D, and E all would support the argument made by the vice president for using social media sites. Choice B emphasizes that combining social media and general search ads leads to better results than general search ads alone. Choices C and D indicate that social media sites increase brand recognition and customer relations. Choice E supports the vice president's argument in that real-time discussions can lead to increased buzz, resulting in increased sales.

Question 10

The director of marketing argues that Dinasonic should use an adaptation strategy for its marketing because its products will need to be adapted to different markets.Which of the following,if true,would strengthen this position?
A) Dinasonic's products have consistently had the most competitive prices in the U.S. market.
B) For the kinds of products that Dinasonic makes, preferences for their use vary between different cultures.
C) Dinasonic will not face much competition in the countries in which it plans to sell its products.
D) Dinasonic will have a limited advertising budget for its international marketing efforts.
E) Dinasonic has consistently gained in market share in the United States over the last several years.

Accepted Answer

B)If Dinasonic's products will need to be adapted to different markets, then it is likely that marketing approaches adapted to those products will also be necessary. Choices A and E are not relevant to whether the company should adapt its products to different markets. Choices C and D would weaken the case that Dinasonic should adapt its products to different markets.

Question 11

Which of the following,if true,would weaken the VP of Operation's position?
A) Success in the energy drink market was an important goal mentioned in the company's annual report.
B) Young males have demonstrated low awareness of many soda brands.
C) Professionals tend to have more disposable income than nonprofessionals.
D) Concern over social responsibility is rising across a wide variety of market segments.
E) Professionals are more likely than nonprofessionals to be concerned about the long-term health effects of energy drinks.

Accepted Answer

E)The VP of Operations wants to target female professionals. But if Choice E is true, and professionals are concerned about the health effects of energy drinks, then professionals might not buy as many energy drinks. Choice E would be even stronger if it spoke directly to female professionals, but as is, it still qualifies as a weakener by casting doubt on the "professional" part of the female professional segment.

Question 12

Which of the following,if true,would support the CEO's position?
A) Snazzy decided that producing a line of energy drinks would be more profitable than attempting to penetrate international markets.
B) Young males, as a group, consume more energy drinks than any other market segment.
C) Energy drinks cost more per ounce than other popular beverages.
D) Energy drink manufacturers have recently tried to associate their product with positive social causes.
E) Different companies define "young" differently.

Accepted Answer

B)The CEO wants to target young males. If young males are heavy consumers of energy drinks, Choice B, then the CEO's approach looks better. Choices A, C, and D concern the decision to produce energy drinks at all, and not the issue of which segments to target. Choice E suggests that the CEO's segment definition might be imprecise, so Choice E could only hurt the CEO's position. But we don't care about everyone's definition of "young," anyway. We just care about Snazzy Sodas' definition.

Question 13

Which of the following,if true,would MOST strongly support the VP of Operation's position?
A) Industry-leading companies tend to target as wide a market as possible.
B) Female professionals are more likely to stay with a known brand for expensive items such as cars.
C) Female professionals tend to have a strongly positive opinion of Snazzy's current products.
D) Young females consume more energy drinks per person than does the general population.
E) Male professionals often report a lack of energy while at work.

Accepted Answer

C)The VP of Operations wants to target female professionals. If those people already have a positive opinion of Snazzy, Choice C, then they would be more likely to try a new Snazzy product. So Choice C strengthens the argument. Choice A:This is about Snazzy, not about industry in general. In any case, Choice A works against the notion of targeting. Choice B is irrelevant because energy drinks would not qualify as an "expensive item." Choice D would be correct if it said "female professionals," but young females are a different group. Choice E suggests that male professionals might be a good target.

Question 14

Hilltel's head of marketing thinks that a standardized marketing strategy will allow the company to portray a consistent global brand.Which of the following,if true about using a single marketing approach,would strengthen his case?
A) The company would face more competition overseas than otherwise.
B) The company's products would need to be of the most recent technology.
C) The prices of the company's products will be the same everywhere in the world.
D) An international marketing team would need to be hired to craft an appropriate strategy.
E) The company's products could be standardized accordingly.

Accepted Answer

E)If standardized products match best with a standardized marketing strategy, then this will allow the company to save money since they will enjoy an economy of scale from making more of the same product rather than many different customized products. More competition (Choice A)and more expensive products (Choice B)would both weaken the case for a standardized marketing approach since they make it more difficult to sell products. The case would also be weakened if the company would not be able to customize prices to whatever is most appropriate in local markets (Choice C), and a successful standardized marketing strategy would be costly and difficult to develop (Choice D).

Question 15

Why is product development a long and expensive process?

Accepted Answer

The answer of Why is product development a long and...

Question 16

Hilltel's CEO thinks that having a standardized marketing strategy will enable the company to control and plan production better.Which of the following,if true about using a single marketing approach,would strengthen her case?
A) It means the company will sell in the same way to countries regardless of culture.
B) It allows for simplifying inventory and quality control processes.
C) It means that more employees will need to be hired at the company's headquarters.
D) It locks the company into one marketing strategy for the long term.
E) It means that more extensive managerial oversight in sales will be needed.

Accepted Answer

B)If inventory and quality control processes are simplified, this will probably significantly lower the company's operating costs, all other things being equal. Choices A and D indicate a disadvantage in that the company's flexibility and responsiveness to local markets and changes over time will be greatly limited. Choices C and E suggest a greater cost to the company, so they would weaken the CEO's case.

Question 17

The director of marketing argues that Dinasonic's products will need to be adapted to local markets to fit the standard of living in other countries.Which of the following,if true,would strengthen this position?
A) Dinasonic plans to enter only markets in advanced economies.
B) Dinasonic has some of the best marketing talent in the industry.
C) Dinasonic's manufacturing processes are very cost-effective.
D) None of Dinasonic's major competitors will be entering the same markets Dinasonic will.
E) Many consumers in developing economies would not be able to afford Dinasonic's products.

Accepted Answer

E)If the company wants to sell to consumers in developing economies, then its products should be adapted to what those consumers can afford. Choices A, C, and D would weaken the case that Dinasonic should adapt its products to different markets. Choice B is not relevant to whether Dinasonic's products will need to be adapted to local markets.

Question 18

Penelope's Pizza also wants to be at the forefront of current trends and changes in the practice of advertising.The account manager wants to focus on consumer-generated advertising via YouTube,Twitter,and Facebook,whereas the CEO prefers to focus on mainstream media.Which of the following,if true,would support the position of the account manager?
A) The number of television cable channels has skyrocketed in recent years.
B) Over the same time, the four major television networks suffered a 20 percent decrease in viewership, leading to a reduction in advertising rates.
C) The emphasis on effectiveness and accountability has lowered the production costs for a 30-second television commercial.
D) Television networks are seeking to ban the feature in recording devices that allows viewers to record television shows while deleting all commercial messages.
E) Young adults, under the age of 30, consume the largest amount of pizza per capita, and are the greatest users of social media.

Accepted Answer

E)Choice E supports the argument of the account manager to focus on consumer-generated advertising through social media sites. Since young males use the sites most frequently, and also eat the most pizza, the account manager is reaching a greater number of the target audience. Choices A, B, and C support the position by the CEO, by suggesting that the opportunities for mainstream media advertising have never been higher, during a time when both production and rate costs are falling. Choice D represents a long-term concern for the CEO's position if the networks lose the battle to limit commercial-skipping features, but it isn't really relevant to the current argument between the account manager and the CEO.

Question 19

Which of the following questions is LEAST relevant to Snazzy Sodas' evaluation of the desirability of the young male market segment?
A) What is the percentage of young males in the general population?
B) What attitudes do members of this group likely have about Snazzy Sodas?
C) How does the consumption of energy drinks by young males compare to the consumption patterns of other groups?
D) Would Snazzy Sodas be likely to target young males if it were producing a different product?
E) Are young males likely to consider a company's reputation for social responsibility when they purchase energy drinks?

Accepted Answer

D)Lots of issues are relevant here. Bigger segments are, in general, more desirable, Choice A. Snazzy also cares about the group's predisposition to the brand, Choice B. If they like Snazzy, they will be more likely to try a new product from the company. Choice E is similar in this regard, because Snazzy is known for social responsibility, and if young males care about social responsibility, they might like Snazzy. Choice C would tell us how much this group consumes as compared to other groups. Snazzy would want to go after regular consumers. Choice D is the irrelevant choice. The issue at hand is energy drinks, not other products.

Question 20

After becoming a successful national brand,Penelope's Pizza has made the decision to expand overseas and enter the global market.Using a globally integrated marketing plan,Penelope's plans to enter the pizza market in Germany,Japan,and India.The CEO wants to use an adaptation plan in the new markets,and thus offer kielbasa pizza in Germany,sushi pizza in Japan,and vegetarian pizza in India.The advertising firm recommends a standardization approach as being more cost efficient and brand identifiable.Which statement,if true,supports the CEO's argument?
A) Traditionally, all three markets are slow to adapt to the idea of fast food, and prefer meals with known ingredients that are familiar to them.
B) The cost of introducing new ingredients to the menu will increase the price of pizza by 15 percent.
C) Marketing surveys show that the under-30 generation in each of the three countries is increasingly eager to consume American fast food as a status symbol of increasing wealth.
D) The current economic slump has decreased the volume of sales for all fast foods on a global basis.
E) Obtaining vendors for new pizza toppings would require the hiring of additional translators in each country.

Accepted Answer

A)Choice A says that these three markets are unlikely to embrace a new fast food product with mostly foreign ingredients. Thus the CEO's plan-to adapt the product and the advertising to focus on cultural preferences and known ingredients that are familiar and readily available locally-makes sense. Choices B and E would support the argument made by the advertising firm for standardization, since adaptation would raise costs. Choice C also supports the advertising firm's stand, as it would emphasize fast food as sold in America, thus standardization. Choice D does not support either argument.

Quiz 11: Marketing Processes and Consumer Behavior

The director of marketing argues that Dinasonic should alter its marketing strategy in different countries by adapting its methods of advertising.Which of the following,if true,would support this position?

Which of the following,if true,would weaken the CEO's position?

Explain the difference between demographic variables and psychographic variables.

Which of the following practices would support the CEO's argument?

Which of the following,if true about the real estate industry in general,would weaken the Marketing Director's argument?

Which of the following is assumed by the Marketing Director's argument?

The director of marketing argues that Dinasonic should use an adaptation strategy for its marketing because its products will need to be adapted to different markets.Which of the following,if true,would strengthen this position?

Which of the following,if true,would weaken the VP of Operation's position?

Which of the following,if true,would support the CEO's position?

Which of the following,if true,would MOST strongly support the VP of Operation's position?

Hilltel's head of marketing thinks that a standardized marketing strategy will allow the company to portray a consistent global brand.Which of the following,if true about using a single marketing approach,would strengthen his case?

Why is product development a long and expensive process?

Hilltel's CEO thinks that having a standardized marketing strategy will enable the company to control and plan production better.Which of the following,if true about using a single marketing approach,would strengthen her case?

The director of marketing argues that Dinasonic's products will need to be adapted to local markets to fit the standard of living in other countries.Which of the following,if true,would strengthen this position?

Which of the following questions is LEAST relevant to Snazzy Sodas' evaluation of the desirability of the young male market segment?