4511 study guide final 2010 ch.

7,8,14

True/False
Indicate whether the statement is true or false.

__T__ 1. Global Travel Agency is a small business that creates personalized vacations for its customers and is now in
the process of identifying groups of travelers who have relatively similar vacation dreams. The business is
engaged in the process of market segmentation.
__T__ 2. A market segment is deemed to have substantiality if it contains large numbers of potential customers.
__T__ 3. Geography, psychographics, and benefits sought are examples of possible segmentation variables used by
marketers.
__F__ 4. U.S. paint manufacturers traditionally use different formulae for developing paint to be used in the humid
Southeast, the frigid Midwest, and the hot and dry Southwest. This is an example of how demographic
segmentation is used. Geographic
__T__ 5. A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in
terms of their gender, age, and educational levels. The study used demographic segmentation variables.
__T__ 6. Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets
Home. It is an advice book for new fathers. The market for this book is based on demographics.
__T__ 7. Five statistically distinct health segments in the general population have been identified. One of these
segments is referred to as “Avid Partners.” Avid Partners are information-driven. They are characterized by
their high interest in acquiring health-care knowledge, their perception of themselves as "partners" in
decisions that are made about their medical care, their lack of loyalty to specific physicians, and their
resulting willingness to change physicians. The primary segmentation variables used to identify these health
segments was psychographic
__T__ 8. Reality-based television shows are targeted to people who like to believe they could become a part of such a
show and find their way to fame and fortune. This is an example of psychographic segmentation.
__T__ 9. Sav-On Stores, which operates a number of Piggly Wiggly grocery stores, learned that 25 percent of its
shopping base is responsible for a substantial majority of its revenue. This is the general idea posited by the
80/20 principle.
__F__ 10. Clorox targets individuals who buy lots of cleaning products (heavy users). Some of these users are mainly
interested in cleaning bathrooms, while others are more concerned with kitchen cleanliness. Clorox doesn't
approach these two groups differently but addresses both types of people as heavy users. This is an example
of how companies use benefit segmentation. Usage-Rate
__F__ 11. The business market consists of four broad segments. They are producers, resellers, governments, and
regions. Institutions
__T__ 12. Festive Holiday Truffles is a small confectionary company in Washington. Its owner has been heard to say
she engages in mass marketing. Marketers would call her strategy an undifferentiated targeting strategy.
__F__ 13. One reason marketers use market segmentation as a tool is that once completed, the process need not be
repeated.
__T__ 14. Pitkin Enterprises produces animal figurines for children and young adults. For children, it makes hard-to-
break figurines that are promoted and distributed in the same manner as the delicate, porcelain ones made for
young adults. Pitkin engages in multisegment targeting.
__T__ 15. One of the forces influencing the growth of one-to-one marketing is more demanding and time-poor
consumers.
__F__ 16. Ol' Roy (the Wal-Mart store brand) dry dog food is sold at minimal cost with no promotion. Kal-Kan Foods
markets Pedigree dry dog food and spends time and money to develop ads to show the relationships between
dogs and their owners. Since the two companies' products provide the same level of nutrients to dogs, these
products are undifferentiated.
__T__ 17. A marketing decision support system is an interactive, flexible computerized information system that
bypasses information-processing specialists and gives managers access to useful information from their own
desks.
__F__ 18. The three roles of marketing research are persuasive, reminder, and informative. Descriptive, Diagnostic,
and Predictive
__T__ 19. A decision support system (DSS) involves the planning, collection, and analysis of data relevant to marketing
decision making and the communication of the results of this analysis to management.
__T__ 20. Marketing research provides decision makers with data on the effectiveness of the current marketing mix and
also with insights for necessary changes.
__T__ 21. To save money on marketing research, a marketing manager suggests the company use the results of a survey
conducted last year because similar questions were asked then. The manager is suggesting use of secondary
data.
__F__ 22. The quality of secondary data should never be questioned.
__T__ 23. Stuart Marketing Research is gathering information on the way people wrap gifts specifically for a large
manufacturer of gift wrap paper that is considering introducing reusable wrapping paper with Velcro
fasteners. The information gathered would be an example of primary data.
__F__ 24. The most popular technique for gathering primary data is statistical analysis. Survey
____ 25. When Mars Candy used computerized mall intercept interview techniques to determine how and when people
buy chocolate, it would have most likely used either computer-assisted personal interviewing or computer-
assisted self-interviewing.
__F__ 26. An example of a good open-ended question would be, "Do you prefer dark chocolate or milk chocolate?"
__F__ 27. Xerox was engaged in experiment research when it sent researchers to visit workplaces and watch people
while they worked. Observation
__T__ 28. Ethnographic research is a form of experiment research because it is conducted without any preconceptions.
__F__ 29. Researcher Martina Nugh was interested in how students perceive the health service provided by her
university. To collect data on this issue, she interviewed the students in her evening class. Nugh has used a
random sampling procedure. Convenience
__T__ 30. Among the advantages claimed for online focus groups are speed, cost-effectiveness, broad geographic scope,
accessibility, and honesty.
__T__ 31. Scanner-based research is a system of gathering information from a group of respondents by continuously
monitoring the promotions panel members are exposed to and their subsequent purchase behavior.
__F__ 32. Los Hermanos Cafe has successfully operated seven restaurants in the same community for 20 years.
Management plans to introduce an egg and cheese breakfast burrito to three restaurants after having success
with this product in its other four diners. Los Hermanos Cafe doesn't need to conduct research before
introducing the new product in its remaining restaurants.
__T__ 33. Competitive intelligence allows managers to predict changes in business relationships, identify marketplace
opportunities, and discover new or potential competitors.
__T__ 34. Lobbying, product publicity, and crisis management are all functions of public relations tools.
__T__ 35. Crisis management should begin before a crisis occurs.
__T__ 36. A sales promotion campaign could include any (or all) of the four promotional elements of the promotional
mix.
__T__ 37. Sales promotions are primarily short-term incentives. Immediate purchase is usually the goal of sales
promotion.
____ 38. Coupon distribution by packaged-goods manufacturers has been increasing in recent years.

__F__ 39. When Hasbro Games offers to pay a $2 refund to any customer who purchases either a Connect Four,
Trouble, Operation, Battleship, Twister, or Guess Who? game, it is an example of a premium offer. Rebate

__T__ 40. During the month of July 2006, any child who got a McDonald’s Happy Meal also received a toy inspired by
Disney's Pirates of the Caribbean: Dead Man's Chest. The toy is an example of a premium.
__F__ 41. Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions are
made before consumers ever enter a store.
__T__ 42. Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser Jet printer they sold.
The $25 is push money.
__T__ 43. Manufacturers use trade promotions because they help manufacturers gain new distributors, obtain
intermediary support for consumer promotions, and improve trade relations.
__T__ 44. Personal selling becomes a more important promotional tool as product complexity and buyer risk increase.
__T__ 45. Consultative selling is also called relationship selling.
__T__ 46. Relationship selling is typically used to sell industrial-type goods, such as oil drilling equipment.
__T__ 47. With relationship selling the salesperson would spend most of his or her contact time with the prospect
talking about the product because the salesperson does not want to waste the customer's time.
____ 48. To qualify a sales lead, a salesperson must identify the person in an organization who has the authority to buy
the product and must close the sale with that individual.
__T__ 49. Salespeople should view objections as requests for information.
__T__ 50. The final selling duty for most successful salespeople is closing the sale.

Multiple Choice
Identify the choice that best completes the statement or answers the question.

__E__ 51. _____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.
a. Perceptual mapping
b. Positioning
c. Micromarketing
d. Market sampling
e. Market segmentation
__E__ 52. Market segmentation helps businesses to:
a. define customer needs and wants more precisely
 b. more accurately define marketing objectives
c. more efficiently allocate resources
d. better evaluate their performances
e. do all of these things
__C__ 53. Which of the following is NOT one of the four criteria identified in the text for successful market
segmentation?
a. substantiality
b. identifiability and measurability
c. accountability
d. accessibility
e. responsiveness
__C__ 54. To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria are:
a. segmentable, targetable, reliable, and homogeneous
b. tangibility, flexibility, causality, and accessibility
c. substantiality, identifiability and measurability, accessibility, and responsiveness
d. reliability, flexibility, tangibility, and accessibility
e. responsiveness, reliability, homogeneity, and causality
__E__ 55. According to the criterion of _____ a selected segment must be large enough to warrant developing and
maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable,
even if the number of potential customers is small.
a. causality
b. accountability
c. responsiveness
d. accessibility
e. substantiality
_C___ 56. DCS Corporation makes barbecue grills. It has expanded into high-priced, multi-purpose grills for people who
want to be able to cook all their food outside. Facing little competition, DCS designed an excellent line of
specialty grills, had good distribution, used effective promotion with this market, and within four years had a
respectable market share. Yet financial losses every year have caused DCS to decide to drop this line. The
reason could be that this market segment, relative to the resources devoted to it, lacked:
a. reliability
b. identifiability and measurability
c. substantiality
d. accessibility
e. causality
__C__ 57. SRD Research Firm has conducted marketing research on the market for concrete siding for homes. The
research firm has determined there are thousands of homeowners who want the security, safety, warmth, and
stability provided by concrete siding. These homeowners are generally married and between 25 and 54 years
of age. They tend to live in suburban neighborhoods and most subscribe to lifestyle magazines. If you were
interpreting these results, you might suggest that SRD:
a. conduct additional research because it has no idea about the measurability of its segments
b. examine the research report again to see if it can determine segment accessibility
c. conduct a follow-up analysis to determine if the segments it might choose would respond
differently from other segments to its marketing strategy
d. not segment the concrete siding market because the only market for siding is contractors
who build the homes
e. segment the concrete siding market based on the information provided and concentrate its
efforts on suburban homeowners between 25 and 54 who read lifestyle magazines
__E__ 58. E&V Bridal Studios is a wedding consulting business targeted to East Asians. It accommodates the various
cultures by providing services to appeal to Koreans, Vietnamese, Chinese, and Japanese customers. E&V
Bridal Studios markets its services to its customers by using ethnicity to divide its customers into segments.
Ethnicity is its primary:
a. perceived image
b. accessibility quotient
c. environmental control
d. segmentation base
e. differentiation guide
__C__ 59. Income, ethnic background, gender, and age are all examples of _____ segmentation bases.
a. geodemographic
b. organizational
c. demographic
d. socioeconomic
e. psychographic
__B__ 60. Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets
Home. It is an advice book for new fathers. What demographic variables have been used to define the market
for this book?
a. benefit desired and lifestyle
b. gender and family life-cycle stage
c. age, gender, and personality
d. benefit desired and gender
e. usage-rate and lifestyle
__E__ 61. Women have been treated as second-class citizens by the sporting goods industry, but in 2002, sporting goods
manufacturers and retailers began aggressively pursuing this market. Nike opened two women-only boutiques
called Nike Goddess to test how receptive women are to its new merchandising concepts. Which type of
demographic segmentation is the sporting goods industry using?
a. lifestyle
b. usage rate
c. benefit
d. age
e. gender
__C__ 62. Johnson Publishing Company, the world’s largest African American-owned publishing company and home of
Ebony magazine, has forged an alliance with Dan River, Inc., to create luxury bed and bath products for the
newly developed Ebony Home brand. This brand will use the strong relationship the publisher has with the
African American market to sell the brand. What form of demographic segmentation will be used to market
the Ebony Home brand?
a. geographic
b. income
c. ethnic
d. benefit
e. lifestyle
__B__ 63. NASCAR racing fans are some of the most diverse and loyal fans in the world. They will stand in the pouring
rain, the freezing cold, or the blistering heat for hours to shake the hand and get the autograph of a NASCAR
super driver. These fans are not concentrated in any one area, but are dispersed throughout the United States.
A Web site designed to market NASCAR memorabilia would be most likely to be successful if it used _____
segmentation to determine its target market.
a. demographic
b. psychographic
c. geodemographic
 d. usage rate
e. family life cycle
__D__ 64. In Little Rock, Arkansas, everyone who is anybody in society can't wait to get a copy of Soiree magazine. The
magazine is targeted to the upper middle and upper classes in Little Rock and features articles on how they
work and play. The editor of Soiree magazine is relying on _____ segmentation.
a. geodemographic
b. graphic
c. benefit
d. socioeconomic
e. income
__B__ 65. Karry-Lite, the manufacturer of lightweight suitcases with wheels, uses as its slogan, "Takes the 'lug' out of
luggage." This slogan illustrates the use of _____ segmentation.
a. geodemographic
b. benefit
c. functional
d. usage-rate
e. feature-based
__A__ 66. Reader's Digest magazine plans to send to millions of people with different medical conditions, such as high
blood pressure or high cholesterol, a booklet filled with articles and prescription-drug ads, all about the very
condition each subscriber has. Reader's Digest is applying benefit segmentation, which is:
a. developed on the basis of what a product will do for the customer rather than on buyer
characteristics
b. used to market to organizations but not to consumers
c. not permitting marketing managers to build consumer profiles
d. simply choosing the most economical and beneficial demographic variable as a
segmentation variable, to keep company costs low
e. the strategy of building a competitive advantage over the competition
_A___ 67. When asked to name a brand of sports drink, most people will answer Gatorade, and some will respond with
Powerade also. But people with diabetes who still need to replenish electrolytes lost during activity or illness
cannot drink these sports drinks because they are high in sugar and thus cannot be drunk by diabetics. As a
result, a manufacturer has developed Champion Lyte, which contains no sugar. The manufacturer of
Champion Lyte has used _____ segmentation to identify its market.
a. geodemographic
b. usage-rate
c. demographic
d. psychographic
e. benefit
__E__ 68. ProtecTV is a product that selectively mutes words and phrases some people find objectionable. It can be
connected to a television, VCR, DVD player, or a satellite TV system. The manufacturer of ProtecTV
targeted parents who did not want their children exposed to what they consider to be offensive language. By
helping parents who want to protect the innocence of their children, ProtecTV is using _____ segmentation.
a. usage-rate
b. demographic
c. geodemographic
d. competitive
e. benefit
____ 69. Tower Fasteners developed a commanding position in the fastener industry by having in stock over 150,000
different types of fasteners. Tower's primary market is defined as companies with a need for specialized
fasteners. All of the following are characteristics of the buying organization that Tower can use for
segmentation EXCEPT:
 a. psychographic variables
b. the method the company uses to make purchases
c. geographic location
d. personal characteristics of purchase decision makers
e. company size
__B__ 70. Ayres Corporation makes airplanes. It sells about 50 planes a year to be used as crop dusters, and another 75 a
year to delivery companies. In addition, it manufactures another dozen or so that are used for fire fighting and
about six a year that are sold for military transport purposes. Ayres Corporation uses _____ variables.
a. demographic
b. company characteristics
c. benefit
d. buyer ethnicity
e. usage rate
__A__ 71. June LaVista owns a health and fitness gym. After dividing her customers into four segments based on
income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a description of
each segment's size, expected growth, frequency of exercise, and overall profit potential. LaVista engaged in:
a. profiling and analyzing her market segments
b. positioning her products to her market segments
c. targeting promotions to her market segments
d. differentiating her market segments
e. concentrating her marketing mix on the most profitable marketing segments
__D__ 72. Market segmentation:
a. is a scientific technique for selecting ways to attract specific population samples
b. is rarely done by consumer products companies
c. only needs to be done once for each product
d. should be redone periodically
e. should be done every time a product enters a new stage of its life cycle
_B___ 73. A(n) _____ is a group of people or organizations for whom an organization designs, implements, and
maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying
exchanges.
a. heterogeneous segment
b. target market
c. responsive segment
d. aggregated market
e. undifferentiated target
_D___ 74. Today's typical recreation vehicle owner is white, 50 years old, and married. With a mean household income
of $71,900, they are more affluent than average and tend to own their homes. They spend approximately 19
days a year in their rolling homes. On the way, they're more likely than average to listen to country music or
all-talk radio. They also prefer Velveeta to ricotta or feta cheese. This describes the _____ for recreation
vehicles.
a. market audience
b. market differentiation
c. perceived market
d. target market
e. aggregated market
__D__ 75. John Sichner, editor and publisher of Beverage Digest, a trade journal for beverage producers, wrote, "In this
day and age, one product can't be the answer for all consumers." In other words, Sichner was opposing the use
of:
a. repositioning
b. reengineering
 c. one-to-one marketing
d. undifferentiated targeting
e. niche marketing
__D__ 76. Stouffer's offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for another
segment that wants both good taste and low calories. When Stouffer's chose to serve two well-defined market
segments and develop distinct marketing mixes for each, it was implementing a(n) _____ strategy.
a. market integration
b. concentrated targeting
c. undifferentiated targeting
d. multisegment targeting
e. heterogeneous positioning
_D___ 77. Ayres Corporation makes airplanes. It sells about 50 planes a year to be used as crop dusters. It sells another
75 a year to delivery companies. In addition, it manufactures another dozen or so that are used for fire
fighting, and it sells about six a year for military transport purposes. What type of targeting strategy is Ayres
using?
a. demand positioning
b. concentrated targeting
c. undifferentiated targeting
d. multisegment targeting
e. market differentiation
__B__ 78. Clorox saw sales of its bleach products suffer when it introduced laundry detergents with bleach as an added
ingredient. This is an example of:
a. demarketing
b. cannibalization
c. undifferentiation
d. repositioning
e. perceptual confusion
_C___ 79. Disney is offering to print story books about your child. Each 30-page book will be personalized throughout
based on information the parents provide. These books are based on the child’s favorite Disney movies. For
$20 a month, a new book will be created each month just for your child. This is an example of:
a. an application of the 80/20 rule
b. firewall marketing
c. one-to-one marketing
d. transformational marketing
e. data mining
__A__ 80. For an engagement ring, Keishail would rather have a diamond than a cubic zirconium because the diamond
is marketed as the only way to show someone that you really love her and are sincere about your commitment
to her. This indicates positioning by:
a. product class
b. competitor
c. product user
d. product use
e. price and quality

Turkey Hunting Equipment

 Around the beginning of fall each year, about 2.7 million turkey hunters all over the United States start
looking at catalogs for the perfect item to guarantee that this year they will kill a wild turkey, the most elusive
game bird on the North American continent. The devoted turkey stalker can stock up on everything from
camouflaged turkey hunting socks, turkey license plate holders, vests with huge pockets for toting dead birds,
and hunting videos to turkey decoys, turkey earrings, and turkey callers. Neil Cost is considered the best
manufacturer of turkey callers in the world. It is his only product, and each is highly prized by turkey hunters.
It is not unusual for a turkey hunter to pay $5,000 for one of Cost's callers.

__A__ 81. Refer to Turkey Hunting Equipment. Given that the wild turkey hunters number approximately 2.7 million, it
meets the segmentation criterion of:
a. substantiality
b. accessibility
c. reliability
d. responsiveness
e. functionality
__E__ 82. A true marketing decision support systems (DSS) should be:
a. flexible
b. discovery-oriented
c. interactive
d. accessible
e. All of the choices describe true marketing decision support systems.
__C__ 83. According to the text, a true marketing decision support system should be:
a. reactive
b. customer-oriented
c. interactive
d. rigorous
e. descriptive
__E__ 84. The first step in the marketing research process is to:
a. specify the sampling plan
b. collect the data
c. analyze the marketplace
d. plan the research design
e. identify and formulate the problem/opportunity to be studied
__C__ 85. Volkswagen lost more than $1 billion in its U.S. operations in both 2004 and 2005. In which step of the
marketing research project, would the Volkswagen engineers (who were raised in the no-nonsense cockpits of
German cars) realize the problem was that they were not designing cars for Americans who use their cars like
a second office?
a. the research design step
b. the data collection step
c. the data analysis step
d. the problem formulation step
e. none of the choices
_E___ 86. Research by Morgan Stanley revealed that 72 percent of the U.S. residents are willing to try flavored colas.
Since the cola industry is stagnant in most areas of the country, this is important information. Marketing
research on how best to use this information will begin with the:
a. collection of the data
b. specification of the sampling plan
c. implementation of employee empowerment
d. research design
e. recognition of the marketing opportunity
____ 87. The research design specifies:
a. follow-up procedures for the research
b. the information that will be found
c. how the final report will be written
d. how the information gathered will be used to predict external environmental changes
e. the research questions to be answered
____ 88. Stair Specialist, Inc. builds customized circular staircases for homes in southern California. Its sales have
plateaued. Nothing it does seems to change its sales picture. Its owner has asked you to advise the company
on what it should do to increase its sales. Which of the following is an example of primary data that could be
used for examining this marketing research problem?
a. data from a study of new home start-ups in southern California
b. an article in a construction trade journal predicting fewer housing starts during the next
decade
c. industry predictions that the number of new homes built in the Southwest will increase by
15 percent
d. information from the Los Angeles Yellow Pages showing the number of building
contractors has declined over the past five years
e. none of the choices
_B___ 89. What is the chief advantage of primary data?
a. low cost compared to secondary data
b. relevance to the problem at hand
c. availability to any interested party for use
d. accessibility through computerized databases
e. avoiding interviewer biases
__B__ 90. Your supervisor has instructed you to conduct a marketing research effort that will determine how your
company's business customer demographics have changed. You have also been instructed to use primary data.
You will:
a. gather data from Standard & Poor's General Information File
b. develop a mail survey to study your primary market
c. employ studies done by the Federal Trade Commission
d. make sure you locate Internet information by using a search engine
e. ask the National Industrial Conference Board for its latest study
____ 91. The Durham Bulls are a Minor League Baseball team. The team plans on using the same questionnaire to
determine how its fans would feel about moving the stadium to a new location and how they like the team’s
newly designed uniforms. This research is an example of:
a. a dual-purpose analysis
b. a single-source study
c. a Siamese twin project
d. a piggyback study
e. dual experimentation
__E__ 92. A major limitation of the mall intercept interview is:
a. the difficulty of measuring attitudes and opinions
b. the need to interview people standing up
c. its high cost relative to in-home interviews
d. the difficulty of demonstrating new products
e. the difficulty of obtaining a representative sample of the population of interest
____ 93. Computer-assisted personal interviewing and computer-assisted self-interviewing are two computerized
methods for conducting:
a. CLT interviews
b. mall intercept interviews
 c. e-mail interviews
d. in-home interviews
e. focus groups
__A__ 94. Telephone interviews offer:
a. speed in gathering data
b. a potential for reaching all households
c. few nonresponses
d. the ability to collect large amounts of complex data
e. the highest-cost method for obtaining data
__A__ 95. The office of lieutenant governor was vacated, and a special election was called to fill the office. When the
head of the state’s Department of Education decided she might run for the office, she was unsure how running
for this office could affect her long-term plans for running for the office of U.S. senator. She has hired a
research company to obtain survey data from voters in the state. Given that she must make a decision in less
than three weeks, the research company should use:
a. a telephone survey
b. focus group interviews
c. personal interview surveys
d. a mail survey
e. a passive people meter
__E__ 96. You need to collect information quickly using a complex questionnaire that probes for feelings behind why
people purchase your products. You also want each interviewer to conduct the survey in the same manner.
Fortunately, you have access to a computerized questioning system. Which of the following is your best
option?
a. in-home personal interviews
b. mall intercept interviews
c. a mail panel survey
d. focus groups
e. central-location telephone (CLT) interviews
__E__ 97. Mail surveys can provide more thoughtful replies than other research methods can, but they often produce
low response rates. This is an important consideration because:
a. thoughtful replies are harder to quantify and are, therefore, of less value
b. the respondents may elaborate too much on their responses
c. prodding the respondents to elaborate on their answers is time-consuming
d. certain members of the population are more likely to respond to mail surveys than others
e. it would be less expensive to use telephone surveys and get a higher response rate
__C__ 98. Low response rate is a problem commonly associated with:
a. exit interviews
b. executive interviews
c. mail surveys
d. mall intercept interviews
e. in-home interviews
_B___ 99. Adidas, the athletic shoe manufacturer, wants to collect data on consumer receptivity to its newest product
line extension--Adidas perfume, a perfume with a floral scent. The marketing research director has
recommended using a mail panel operated by NPD Research. What can Adidas expect from a mail panel?
a. a very high response rate
b. the response rate will be low, as it is for all self-administered surveys
c. the participants are not usually compensated for their assistance, so it will be inexpensive
d. data collection is more rapid than telephone interviews
e. the panel of consumers will meet monthly to discuss products that were sent to them to try
____ 100. _____ have essentially the same advantages and disadvantages as in-home interviews.
a. Mall intercept interviews
b. CLT interviews
c. Mail panel surveys
d. Executive interviews
e. Focus groups
__E__101. A _____ is a form of personal interviewing that uses a group of seven to ten people who have been recruited
because of certain desired consumer characteristics.
a. passive people meter
b. primary data group
c. cross-tab set
d. CLT interview
e. focus group
_E___102. The owner of a chain of Mexican restaurants wanted to know how his employees interacted with restaurant
patrons. Which of the following research methods is most appropriate for learning this information?
a. employee focus-group interview
b. mail questionnaire of a sample of current customers
c. telephone survey of current and potential customers
d. experiential research
e. mystery shopper
__C__103. A(n) _____ is characterized by the researcher's altering one or more variables—such as price or package
design--while observing the effects of those alterations on another variable (usually sales).
a. observation research project
b. research problem
c. experiment
d. sampling frame
e. correlation of facts study
__B__104. The best experiments are those in which:
a. all variables are allowed to act freely
b. all variables are held constant except the ones manipulated
c. all factors provide the desired results
d. the subjects are unpaid volunteers
e. two variables are held constant while all of the others are manipulated
__D__105. A _____ sample is any sample in which little or no attempt is made to obtain a representative cross section of
the population.
a. frame
b. random
c. probability
d. nonprobability
e. representational
__B__106. Nonprobability samples:
a. require more expensive marketing research than probability sampling
b. include any sample in which little is done to obtain a representative cross section of the
population
c. by definition must be representative of the population
d. often start out with random numbers to ensure selection of subjects is truly random
e. offer an easy method for determining sampling error
__A__107. One type of sampling error is _____, which is created when the sample actually interviewed differs from the
sample drawn.
 a. random error
b. diagnostic error
c. nonresponse error
d. nonprobability error
e. measurement error
_A___108. Kent has gathered data concerning people's preferences for traditional breakfast foods. He has learned that 30
percent of the population prefer eggs in the morning, 50 percent of the population prefers something sweet for
breakfast like a doughnut, and an overwhelming 86 percent prefer food that they can eat while they drive to
work. What method of analyzing the data has Kent used?
a. cross-tabulation
b. standard deviation
c. one-way frequency count
d. single correlation
e. linear regression
__A__109. Which of the following statements explains the success of Internet marketing research?
a. It allows for faster and better decision making through more rapid access to business
intelligence.
b. It slashes labor-and time-intensive research activities and associated costs.
c. Its use makes it much easier to conduct follow-up studies.
d. It improves the ability to respond quickly to customer needs and market shifts.
e. All of the statements explain the success of Internet marketing research.
__C__110. Which type of Internet sample would be used by a consumer products company that already has a database
from which to select its sample?
a. mined
b. controlled
c. recruited
d. representational
e. conventional
__B__111. What is the moderator's role in cyber focus groups?
a. to limit discussion to closed-ended questions
b. to provide freestyle screen dialogue including text, instructions, and probes
c. to make sure costs remain relatively low
d. to act as a data-mining engineer
e. to let respondents control the discussion
____ 112. For what kind of research would a marketer use Channel M2?
a. ethnographic research
b. experiment research
c. passive observation research
d. dichotomous research
e. Internet focus group
____ 113. _____ provides market researchers with user-friendly virtual interview rooms, recruiting, and technical
support for conducting virtual qualitative research.
a. Channel M2
b. Internet ethnography
c. Subject-based visualization
d. Broadband virtual setting
e. Research visualization

Sav-More Supermarkets
 Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.
Sav-More supermarkets have installed an electronic marketing system in their stores. The system allows the
stores to do more direct mail promotions by combining the current Sav-More's check cashing cards with the
new Sav-More's Bonus Club frequent-shopper cards. The new system uses bar-code scanners and magnetic
cards issued to shoppers to track all purchases. As with most customer databases, demographic information is
gathered for subsequent offers to frequent-shopper club members, and psychographic information is tracked
whenever customers use the magnetic strip cards to make purchases. Generally, marketing to these consumers
achieves better results than free- standing insert (FSI) coupons.

__A__114. Refer to Sav-More Supermarkets. The Sav-More management is continually provided with information to
make better marketing decisions. These data are easily accessed and manipulated. This type of system is
called a:
a. marketing decision support system
b. competitive intelligence system
c. single-source system
d. marketing information system
e. marketing research system
__C__115. Refer to Sav-More Supermarkets. The creation of a large computerized file of customers' demographic and
psychographic characteristics through the new Sav-More system is called:
a. survey research
b. situation analysis
c. database marketing
d. observation research
e. secondary data

KEZZ

Erica Cicarelli is an advertising sales representative for KEZZ, a radio station that has a play list limited to
recordings from the 1980s. Cicarelli believes the listener ratings of her station provided by a marketing
research company are inaccurate. KEZZ is ranked twenty-fifth in the city. Cicarelli believes her station is
more likely ranked at least tenth and possibly higher with young professional listeners. Listener rankings
determine the rates Cicarelli can charge for advertising time. Cicarelli decided her station needed to conduct
its own ratings study to determine the size of the audience and a profile of current listeners. First, Cicarelli
reviewed all data from the current ratings providers to see if she could find any trends in listenership. Next,
she completed a background investigation of her station, competitive stations, and the market to determine
what the ratings problem may be.

Cicarelli then prepared a questionnaire for current and potential listeners. The questionnaire contained a long
list of yes/no questions on whether the respondent listens to a specific station. The data were collected via
telephone with 1,000 radio listeners using random-digit dialing. Cicarelli chose telephone interviewing
because previous research has shown that nearly 100 percent of radio listeners have telephones, and it is faster
than mail surveys.

__A__116. Refer to KEZZ. The sampling plan utilized by Cicarelli is called a(n) _____ sample.
a. convenience
b. nonprobability
c. probability
d. irregular
e. quota
 SEMA

According to marketing research conducted by the Specialty Equipment Market Association (SEMA), a
growing number of people want to buy compact-performance cars and customize them. They want to turn
Honda Civics, Acura Integras, and Mitsubishi Eclipses into personalized statements of automotive expression.
Eighty-four percent of these people are under 30, and 42 percent are Asian American. More than 80 percent
of them are men. SEMA research shows that a high percentage of this population is interested in finding a
domestic car that can be customized. At a recent automotive aftermarket show, Ford showed three Focus-
based concepts to demonstrate its seriousness about reaching this market.

_C___117. Refer to SEMA. What type of research would have been done if SEMA researchers had gone to parking lots
and counted the number of customized vehicles and noted the different ways they were customized?
a. experimental
b. probability sample
c. observation
d. nonprobability survey
e. focus research
__E__118. The recent accusations of steroid usage lodged against the alleged winner of the Tour de France created
_____ for the bicycle race.
a. numerous sales promotion opportunities
b. free positive advertising
c. numerous demarketing opportunities
d. personal selling opportunities
e. a great deal of publicity
__D__119. When Sara Lee developed crustless bread, it probably planned to rely on _____ to gain exposure for the bread
and to explain how the convenience of the product justifies its higher price. Sara Lee could not have done this
if the product had not been new and innovative.
a. marketing research
b. sales promotion
c. personal selling
d. advertising
e. publicity
__D__120. _____ sales promotions are targeted toward the ultimate end-user market.
a. Facilitating
b. Intermediary
c. Pull
d. Consumer
e. Trade
__A__121. The goal of sales promotion (regardless of what form it takes) is usually:
a. immediate purchase by consumers
b. return on investment
c. cost control
d. market share leadership
e. economies of scale
__A__122. Why do some marketers offer rebates instead of price reductions to induce short-term sales?
a. Rebates are especially good at enticing purchases, but most consumers never bother to
redeem them.
b. A price reduction of this type would likely be an example of price discrimination.
c. Rebates offer a more immediate reward than price reductions.
d. Rebates have a much higher redemption rate than coupons.
 e. Rebates result in brand-loyal consumers.
_C___123. One of the best methods for creating and rewarding brand loyalty among consumers who might otherwise
switch to competing brands is a:
a. directed coupon mailing
b. sweepstakes
c. loyalty marketing program
d. trade sales promotions
e. sampling program
_B___124. Whenever Hugo buys a 12-ounce soda at his nearby convenience store, he gets a stamp for the card that he
carries in his wallet. When he has 8 stamps, he can exchange the card for a free soda. This is an example of
a(n):
a. self-liquidating premium
b. frequent buyer program
c. loyalty incentive
d. in-store rebate
e. consumer allowance
_C___125. Under a partnership agreement between HarperCollins and Sutter Home Winery, consumers can visit the
Sutter Home Web site monthly to learn which book and which wine are being featured. Each visit to the Web
site qualifies the consumers for the opportunity to take their reading group for a weekend stay at the Sutter
Home Victorian Inn and free books from HarperCollins. This prize package will be awarded through a(n)
_____ since there is no skill involved.
a. contest
b. P-O-P promotion
c. sweepstakes
d. loyalty incentive plan
e. event sponsorship
____ 126. Which of the following statements about contests and sweepstakes is true?
a. Contests depend on luck, and participation is free.
b. Contests are generally effective tools for creating long-term relationships with customers.
c. Sweepstakes are promotions that require participants to exhibit some skill.
d. Sweepstakes usually draw about ten times more participants than contests.
e. Contests and sweepstakes are not useful for creating interest and publicity.
__B__127. Montana's Best is a new precooked meal-in-a-bag product made from bison meat. The company is having
difficulty gaining consumer acceptance of its bison products even though bison is high in protein and low in
cholesterol, fat, and calories. Those who have tried the meat have agreed that it is tender and as delicious as
any choice steak, and it is less expensive. Montana's Best should focus on which of the following sales
promotion tools?
a. sponsorship
b. sampling
c. trade promotions
d. in-pack couponing
e. premiums
____ 128. The Men's Health Center offers free blood pressure tests, cholesterol screening tests, and prostate exams one
day each year. These free health tests are an example of a:
a. premium
b. free sample
c. service commission
d. sponsorship
e. point-of-purchase promotion
__C__129. Which of the following is NOT an example of a point-of-purchase promotion?
a. television monitors at supermarket checkouts
b. shelf talkers
c. newspaper inserts
d. shelf extenders
e. end-aisle and floor-stand displays
__E__130. Lopez is the largest Hispanic-owned meat processor in the United States. To assist retailers in marketing its
products, Lopez provides point-of-sale materials and offers special introductory discounts to retailers. Lopez
uses:
a. functional marketing
b. relationship selling
c. consumer promotions
d. startup marketing
e. trade promotions
_B___131. Maureen Kye is a sales associate at a store that sells new and used CDs and DVDs. Recently, she was given a
DVD containing scenes not in the theater-released Disney's Pirates of the Caribbean: Dead Man's Chest to
encourage her to suggest that customers buy this movie. The CD is an example of:
a. the use of a pull strategy
b. a trade sales promotion
c. a trade allowance
d. an intermediary rebate
e. a free consumer sales promotion
__A__132. Which of the following statements does NOT describe an advantage personal selling has over other forms of
promotion?
a. Personal selling is less expensive on a per contact basis.
b. Personal selling is better for providing customers with detailed demonstrations of
products.
c. It is easier to vary the message according to what the customer needs to know with
personal selling.
d. It is easier to direct the marketing effort to directly to qualified prospects with personal
selling.
e. Personal selling costs can be controlled by adjusting the size of the sales force.
__E__133. When compared to other forms of promotion, personal selling:
a. is considerably more effective for obtaining sales and gaining a satisfied customer
b. does not have to deal with unqualified customers
c. is best able to handle customer objections as they arise
d. costs can be more easily controlled
e. is accurately described by all of these
__C__134. Which of the following statements does NOT characterize the traditional personal selling approach?
a. Traditional selling focuses on closing sales.
b. Traditional selling uses short-term follow-ups that focus on product delivery.
c. Traditional personal selling is growing in popularity.
d. Salespeople sell products not advice and assistance.
e. Proposals and presentations used emphasize pricing and product features.
____ 135. In personal selling, "webinars" are used to:
a. support relationship selling tasks
b. facilitate transactional selling
c. increase coupon redemption
d. help consumers shop at online sites
e. test market sales presentations
____ 136. The set of steps a salesperson goes through to sell a particular product is called the:
a. (P-O-S) cycle
b. stimulus-response hierarchy
c. sales presentation
d. sales process
e. sales continuum
__D__137. Sales leads are LEAST likely to be generated by:
a. trade shows and conventions
b. direct mail and telephone marketing programs
c. cold calling
d. reorders
e. networking
__A__138. Joe Hamas sells for Rush Beverages. He is trying to convince retailers to carry his company’s Ginseng Rush
XXX, a new all-natural beverage that delivers an energy punch without caffeine. When he gets retailers to
agree to stock his product, he asks them for the names of other retail operations that might be interested in
carrying it. He is using _____ to get his sales leads.
a. networking
b. cold calling
c. referrals
d. direct marketing
e. noncompeting sales
__A__139. Devone Kanudsky, the junior salesperson for NU-VU Food Services Systems, has been given a list of phone
numbers for all the food service managers in his state. Kanudsky has been instructed to call each number on
the list and see if the respondent is interested in buying a NU-VU pizza/bread baking system. Devone is:
a. cold calling
b. networking
c. using cold referrals
d. teleconferencing
e. lead qualifying
__D__140. _____ involves of determining which sales prospects have a recognized need, buying power, and receptivity
and accessibility.
a. Prospect examination
b. Customerization
c. Lead reciprocity
d. Lead qualification
e. Bird-dogging
__E__141. A salesperson engaged in needs assessment is engaged in:
a. researching the industry
b. finding out about the competition
c. knowing everything there is to know about the customer and its needs
d. learning about the product or service
e. all of these
__D__142. Often the task of lead qualification is handled by a telemarketing group or a sales support person who frees
the sales representative from the time-consuming task by engaging in:
a. prequalification
b. database mining
c. co-opting
d. cold calling
e. networking
__E__143. During the preapproach, the salesperson would:
a. ask for referrals
b. learn as much as possible about the prospect's organization and its buyers
c. create point-of-purchase displays
d. handle pricing objections
e. do all of these things
____ 144. The sales proposal and the sales presentation:
a. are the first step in traditional selling process
b. are the first step in the consultative selling process
c. are a relatively inexpensive step in the sales process
d. have to be face-to-face with the customer to be a success
e. follow the sales approach
__B__145. Which of the following statements about handling objections is true?
a. A professional salesperson should not anticipate objections.
b. Salesperson should view objections as requests for more information.
c. Objections should not be used to close the sale.
d. A good salesperson dreads having to handle sales objections.
e. None of these statements about handling sales objections is true.
__A__146. When a salesperson asks for the sale, he or she is:
a. closing the sale
b. creating empathy
c. reducing cognitive dissonance
d. creating long-term reciprocal arrangements
e. qualifying the sale
__A__147. Morris Hutch sells high-volume cooking systems to supermarket delis. He is in the process of selling one of
his machines as a replacement machine to a deli manager. Hutch has just asked him, “When would you like
me to schedule the delivery of your new machine?” In which stage of the selling process would such a
question most likely be asked?
a. closing the sale
b. follow-up
c. dealing with cognitive dissonance
d. handling rejection
e. qualifying the prospect

Technology Advancement

Successful selling of complex products like computer software requires excellent salespeople. Lack of quality
service in the marketplace led Alan Hall, head of a small computer networking company, to open Technology
Advancement Corporation in 1988. Today, Technology Advancement is a national field marketer with several
divisions. The bulk of its business involves training and educating salespeople on the features, benefits,
competitors, and market potential of Technology Advancement's clients' products. To date, Technology
Advancement has focused on computer software and hardware makers and has launched most of the marquee
names in the industry: Novell, Lotus Development, IBM, Microsoft, Apple Computer, Hewlett-Packard,
Motorola, Intel, and Xerox, as well as smaller firms.
 Here's how the Technology Advancement client-relationship works for training. A marketer hires the
company to promote its product or to launch a new product, and Technology Advancement assigns a team
exclusively to that client. The team gathers, usually at a Utah ski resort, and the client comes in for the
training. The training starts with explaining how personal selling fits the company strategy and how it differs
from sales promotion. Latest developments in the selling process are explained with special emphasis on
networking, follow-up strategies, and postpurchase customer service. Many computer giants have reported
that this type of training program has significantly improved their business.

__C__148. Refer to Technology Advancement. Which of the following statements does NOT describe an advantage
personal selling can provide the computer companies?
a. It can tailor the message to the customer needs.
b. It is good for explaining the merits of complex products.
c. It is inexpensive on a per contact basis.
d. It can be specifically directed to the different types of accounts.
e. It is effective in convincing a prospective client.
_C___149. Refer to Technology Advancement. One of the key areas of training provided by Technology Advancement
Corporation involves postpurchase customer satisfaction surveys. This is part of:
a. negotiation
b. sales presentation
c. following up
d. cold calling
e. referral

College Entertainers

Most colleges and universities have a campus activity board that brings entertainers and special events to
campuses. To locate and hire these entertainers, many campuses send their student activity board members to
one of the seven regional or the national NACA (National Association of Campus Activities) conventions.
More than 100 entertainers, talent agencies, and companies that provide promotional services exhibit their
products at these conventions in an area similar to a trade show. (Conference attendees call this the
Marketplace.) Approximately 20 entertainers are selected to present a short program (called a showcase) in
which they demonstrate what they would do if hired to perform on campus. Many other entertainers have
videos and CDs, which they hand out to student attendees. Only one or two members of any student group
can actually set up a contractual agreement with an entertainer or his or her agency. Other student attendees
provide input as to which entertainers best match the demographics of their institutions.

__C__150. Refer to College Entertainers. When some of the entertainers visit campuses, they give free T-shirts to people
who came to see them perform. These T-shirts are examples of:
a. rebates
b. loyalty reminders
c. premiums
d. informative advertising
e. trade promotions

Essay

151. List in order the steps used to segment a market. Then name two subsequent marketing activities.
152. You are the sales promotion manager for the Pal-o-matic, an automated pallet dispenser used in grocery
warehouses. Your company uses a push strategy, and you are responsible for recommending sales promotion
tools to accomplish this strategy. Describe three specific sales promotion activities you would recommend for
the Pal-o-matic.