Question 11. Subaru of America targeted outdoor enthusiasts when it added an outdoor life section to its Web site, organized by area of interest. The site will serve as a platform for co-marketing and promotional programs and will allow Subaru to gather most overt and covert information. Which of the following provides the most likely reason why Subaru has added this section to its site? to create cognitive dissonance to reduce problems associated with cultural diversity to increase the effectiveness of its channels of distribution to lessen the importance of customer service to design more targeted marketing communications4 points Question 21. Blood ServicesAs flextime, consulting, telecommuting, and downsizing make it more difficult for people to donate blood at the workplace, Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations. Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February, March, and April. These donors were sent a birthday card with the greeting, “On the anniversary of your life, would you consider saving another’s life?”Refer to Blood Services. The organization developed a _____ list of donors to receive birthday cards. compiled benefit-based response feedback proactive4 points Question 31. Which of the following is a guideline for a successful CRM system? Customer information is not retained past the initial contact with the customer. Intuition and experience must define the products provided by the organization. The product takes center stage in the organization. Customer information is kept in a centralized repository. All of these are guidelines for a successful CRM system.4 points Question 41. Which of the following statements about a CRM system is true? A critical component of a CRM system is the use of the appropriate technology to store and integrate customer data. A CRM system operates on the theory that all customers are equally important. Due to privacy laws, a CRM system only disseminates customer information to those who are actually in day-to-day contact with customers. A company using a CRM system must view its customers as bits of data. All of these statements about a CRM system are true.4 points Question 51. CRM concerns many Americans because: of the large number of people who must be served not all customers have access to CRM marketing of the potential for invasion of privacy of the aggressive nature of marketers that use CRM of the expense to consumers4 points Question 61. Les Ailes de la Mode, a Quebec retailer, offers its customers Les Ailes MasterCard. The card is connected to a points program that offers one point for every $20 of purchases on the card and triple that on purchases made at Les Ailes. It also incorporates an electronic chip, through which a $10 coupon is awarded to each member every month via the electronic gift card (on purchases of $10 or more every month). Card members also receive free subscriptions to the retailer’s Les Ailes magazine. This shows how CRM can be used: to retain loyalty in mass marketing to increase knowledge about the competition to create transactional relationships to develop a compiled list4 points Question 71. Hattie is a thirty-something executive. When she went to the phone to place a catalog order for a humidor for her father, she was pleased when the operator suggested that she might also be interested in a subscription to a magazine targeted to cigar lovers. The operator was using _____–a method commonly used to leverage customer information. data mining cross-selling trading up database enhancement a database channel4 points Question 81. Blood ServicesAs flextime, consulting, telecommuting, and downsizing make it more difficult for people to donate blood at the workplace, Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations. Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February, March, and April. These donors were sent a birthday card with the greeting, “On the anniversary of your life, would you consider saving another’s life?”Refer to Blood Services. The organization’s decision to use CRM marketing means it will: use the CRM process as a strategy focus on highly defined and precise customer groups revert to a market aggregation strategy no longer look for new donors create competitive functional areas4 points Question 91. Sizzlin’ ShineSandy Tappan owns an automobile detailing business called Sizzlin’ Shine. Her goal is to outperform other auto shops by specializing in detailing services. Her shop doesn’t do any mechanical or collision repair work. Tappan prices her detailing service higher than her competition because she uses only the best materials, and they cost more than the materials used by her competitors. Her goal is to maximize profits.Refer to Sizzlin’ Shine. Sizzlin’ Shine’s customers can judge the quality of the detailing services on their automobiles only after driving them for a period of time and seeing how the shine holds under various driving conditions. Customers can use _____ to evaluate the service. cognitive perception experience qualities search qualities credence qualities heterogeneous features4 points Question 101. Sizzlin’ ShineSandy Tappan owns an automobile detailing business called Sizzlin’ Shine. Her goal is to outperform other auto shops by specializing in detailing services. Her shop doesn’t do any mechanical or collision repair work. Tappan prices her detailing service higher than her competition because she uses only the best materials, and they cost more than the materials used by her competitors. Her goal is to maximize profits.Refer to Sizzlin’ Shine. When a customer first patronizes Sizzlin’ Shine’s complete detailing service, he or she receives a handwritten thank-you note and a coupon for the next visit from Sandy Tappan. The thank-you note and coupon represent: functional stimuli tangible cues prestige prompts intangible cues manipulation tactics4 points Question 111. Gifts in Kind International is a nonprofit organization that gathers new and used merchandise and distributes it to charities nationwide. Traditional promotional tools may be inadequate to motivate its target markets because of: nonprofit product volunteer policies the absence of consumer involvement lack of prices for the products direct distribution infrequent use of target markets4 points Question 121. If a hospital measured the service quality of its physician care in terms of the total number of people who were attended to–even if patients appeared to want more individualized care–the hospital would be exhibiting a gap between: what customers want and what management thinks customers want the service quality specifications and the service that is actually provided what the company provides and what the customer is told it provides what management thinks customers want and the quality specifications management develops to provide the service the service customers receive and the service they want4 points Question 131. Boutique HotelsIn an industry where guests are tired of cookie cutter hotels, some consumers are looking for personalized service, which can be found in boutique hotels. Boutique hotels cater to their guests’ sense of their personal image as being discriminating, more sophisticated, and more hip. Frequently, these guests don’t want to be where the crowds are. This is a small but growing market niche. There are no generally recognized rules for boutique hotels, but they tend to be small and service oriented, with high-style decor and top-notch restaurants. Employees are called cast members. Amenities include cordless phones, CD players, Aveda brand bath and hair products, and down comforters and pillows.Refer to Boutique Hotels. Boutique hotels not only call their employees cast members, but they compete for their talent, provide them with all the training needed, stress teamwork, and give employees
freedom to make decisions. In order to provide the level of service guests require, boutique hotels need to engage in _____ marketing. interactive relationship internal nonprofit affiliation4 points Question 141. Western Union has 225,000 locations where clients can receive money in 196 countries. Because a person can send money from a small town in Georgia to a small town in Mexico without worrying, Western Union has a high degree of _____ quality. observation survey experience research credence4 points Question 151. Which of the following services is an example of possession processing? a theatrical performance an X-ray of a broken bone an advertising agency marriage counseling heating system repair4 points Question 161. Determining costs can be extremely difficult for a service provider that has adopted a(n) _____ pricing objective and may limit the usefulness of the objective. market-share-oriented operations-oriented revenue-oriented patronage-oriented break-even4 points Question 171. A business professional from The Center for Retailing at Morehead University has been donating several hours of consulting time to local nonprofit organizations each month. This could be expected to provide the center with all of the following benefits EXCEPT: community approval goodwill immediate financial gain personal contacts personal satisfaction4 points Question 181. Unilever advertises its Impulse Body Spray worldwide by using the same “boy meets girl” ad campaign no matter where it wants to market its product. This is an example of a(n) _____ strategy. product and message extension market substitution product adaptation one product, one message one product, multiple messages4 points Question 191. Which of the following statements about the European Union (EU) is true? The EU creates a single Europroduct for a generic Euroconsumer. The EU removes all internal trade barriers and standardizes regulations in European countries for easier trade. The EU can correctly be called the “United States of Europe” because all European voters have agreed to these changes. The existence of the EU eliminates protectionist movements by United Europe against the Japanese and the United States. None of these statements about the EU is true.4 points Question 201. Once a firm has decided on which method to use to enter a global market and evaluated the various external variables, it is ready to create a marketing mix. The first step in creating the global marketing mix is to: create a new product select the method of promotion collect and analyze market research information set pricing policies decide whether product modification is necessary4 points Question 211. The National Corn Growers Association, the American Corn Growers Association, the Farm Bureau, and the Renewable Fuels Association are opposing efforts by House leaders and the Bush administration to suspend import taxes on ethanol imported from Brazil to supposedly bring down prices of the alternative fuel. These taxes are examples of: boycotts quotas tariffs exchange controls embargoes4 points Question 221. When IKEA, the Swedish home furnishings retailer, first entered the Japanese market, it failed. It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes. It success on its second foray into Japan was based on its ability to give the Japanese consumer what he or she needed without abandoning its product strategy. IKEA had to adopt a _____ strategy. product substitution market differentiation message adaptation product invention product adaptation4 points Question 231. The pricing component of the global marketing mix is: the same in domestic and foreign markets fairly simplistic due to the strength of the U.S. dollar abroad the easiest element to implement successfully complicated by product penetration strategies a complex matter due to tariffs, exchange rates, and government regulations4 points Question 241. Which of the following statements about the political environment is true? A recession is part of the political environment. A country is either socialistic or capitalistic, but never both. The countries with the least across-the-board regulations and political structures foster the strongest economies. The European Union is purely an economic arrangement and has no political impact on marketing. All of these statements about the political environment are true.4 points Question 251. Petroleum shortages have resulted in all of the following EXCEPT: the creation of huge amounts of wealth for oil-producing countries such as Norway and Saudi Arabia the inability of oil-producing nations to service foreign debts when prices go up the ability of some countries such as Mexico and Venezuela to borrow heavily against oil reserves to develop more rapidly inflation in oil-dependent nations and transfer of wealth to oil-producing nations recognition by the United States and other industrialized countries of their heavy dependence on petroleum