Q1. Acme Garden Supply has a plant that manufactures 100,000 wheelbarrows per year. This volume and the basic design of the wheelbarrow have not changed in 40 years, but based on recent marketing research the management thinks the company could substantially increase sales with trendy colors and more comfortable handles. The job of the marketing department is to advertise and distribute these wheelbarrows. How would you describe the effect of the changes on the marketing focus of this company?
a. The changes will not make the company more customer focused
b. The changes will make the company more customer focused
c. The changes will make the company more company focused in its marketing efforts
Q2. Modern marketing theory says that
a. there is a single market for any given product
b. markets are made up of segments
c. customer groups will respond the same to a product
d. careful companies will avoid segmenting their markets
Q3. When a company positions to different market segments, it
a. can position an identical product for different market segments
b. can charge different prices for an identical product depending on the market segment
c. neither a nor b
d. both a and b
Q4. Which of the following tends to be true in larger companies?
a. The marketing unit and the production unit within a company have the same goals because they are part of the same company
b. Marketing units usually want fewer product changes because they want to cut down on their marketing work
c. Production units prefer to focus on costs rather than on model changes
d. None of the above
Q5. If a company's customer attrition rate suddenly drops, which of the following is most likely to be responsible?
a. The company has increased its prices
b. The company has started keeping longer hours
c. Customers are becoming dissatisfied with the products or services
d. Products are meeting customer needs better and customers are more satisfied
Q6. For the following question, use the following financial calculator for assistance.
Corning Inc. is a payroll processing company. It learns that a customer has become unhappy with the service it is getting from one of Corning's employees. This customer does $190,000 per year in business with Corning and Corning had expected to keep the account for another 9 years. If the profit margin on that business is 60% and Corning uses a discount rate of 8%, what is the present value of the loss of that customer?
Q7. Joan Smiley sells training seminars to human resource departments of banks. She is exhibiting her products at national and regional human resources conventions. At the end of each show, she has about 200 business cards of individuals who expressed interest in her products. Of these 200 cards, about 75 are from bankers. How would those bank cards be classified?
a. Bank cards would be suspects, all cards would be prospects.
b. All cards would be prospects
c. Bank cards would represent prospects
d. All cards would represent clients
Q8. Earnie Dobbins, just bought a new house with a large yard and is in the first stage of the buying decision for buying a riding lawn mower. Which of the following describes the first stage of the buying decision process Earnie has started?
a. He is reading information on the internet
b. He realizes he needs a lawn tractor
c. He is calling stores for information about their tractors
d. He is considering a recommendation from a co-worker
Q9. In the last stage of the buying decision process
a. the consumer makes the purchase
b. the consumer delays the purchase
c. the company markets harder to the potential customer
d. the company categorizes this as the post purchase behavior stage
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