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Practice Exam 2 - MyWebSpace

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									1. Which of the following statements about single- and limited-line stores is TRUE?
a. Many are small, with high expenses relative to sales
b. They usually believe in a "buy low and sell high" philosophy
c. Such stores face the costly problem of having to stock some slow-moving items in
order to satisfy their target markets
d. Most conventional retailers are single- or limited-line stores
e. All of the above are true

2. Why would you use qualitative research? (Select any that apply)
a.Cheap
b.Detailed responses
c.Easy to analyze
d.Aggregating responses is easy
e.Respondents are not limited in how they can answer
f.Doesn’t require much time
g.Can generate insights that other types of research can’t
h.Easy to research a large sample size

3. Franchise operations provide a good example of:
a.Vertical integration
b.Contractual vertical marketing systems
c.Administered channels in which the retailers are the channel captains
d.Direct-to-buyer channels
e.None of the above

4. There are five steps to marketing research. What is the correct order?
a. Define the problem
b. Analyze situation
c. Get problem-specific data
d. Interpret the data
e. Solve the problem

5. Which of the following is an example of derived demand?
a) it turns out that caffeine causes narcolepsy so people start drinking watered-down
Kool-Aid instead of coffee
b) Soulja Boy has started wearing mascara, so mascara sales in the male population is
skyrocketing
c) Asparagus grows well in the spring, so farmers are selling a lot of asparagus to grocery
stores, and people are buying it because it’s cheap
d) Scientists have discovered that moldy cheese cures acne. Teenagers are now buying so
much cheese that milk prices are at a 27-year high
e) Seventeen magazine printed an article discussing the health benefits of smoking, and
now cigarettes are cool again
6. I go to a store and see 400 different models of televisions that pretty much have
the exact same features. I just choose the cheapest one. I see televisions as:
a.homogeneous shopping products
b.want-based shopping products
c.specialty shopping products
d.heterogeneous shopping products
e.indistinct shopping products

7. Which best typifies the Battle of the Brands?
a.Kraft macaroni vs. Hormel macaroni
b.Kraft macaroni vs. Kraft shells & cheese
c.Kraft macaroni vs. Olive Garden restaurant’s macaroni
d.Kraft macaroni vs. homemade made-from-scratch pasta
e.Kraft macaroni vs. Wal-Mart brand macaroni

8. If Markle Appliance Manufacturing Co. has 65 different models of product all
branded with the name Elkram, Elkram is a:
a.Brand pool
b.Brand line
c.Brand extension
d.Family brand
e.Generic brand

9. Discrepancies of assortment is applicable to which of the following?
a.a manufacturer pumps out 80 billion dog toys a year, but most people only buy one at a
time
b.Sephora makes 4,000 different types of makeup and they sell them all at their own
Sephora stores
c.Univox makes Superfuzz guitar distortion pedals but they are sold at music stores next
to patch cables, picks, and strings
d.Arcturus Steel makes ball bearings in the trillions but sell them to hardware stores who
package them into quantities of 500
e.A company makes golf clubs, golf pants, golf balls, golf hats, golf grips, golf gloves,
and golf videos. They sell these directly to golf dudes by mail order.

10. Aarfy’s sells scrambled merchandise, which means:
a)they create a unique shopping environment by mixing all different types of products on
a single shelf, so you never know what you’ll see next
b)they try to carry as many brands as they possibly can for any given category
c)they’ll sell anything to make a quick buck
d)they ‘scramble’ (hide anti-theft devices) on their product packaging to thwart
shoplifters
e)they make amazing omelettes
11. Modern warehouses have been moved out of downtown areas, which means that
they are horizontal more than vertical. Therefore these modern warehouses don’t
usually use:
a)Freight elevators
b)Power-lifts
c)Motor-scooter
d)Roller-skating order pickers
e)Electric hoists
f)Hydraulic ramps
g)A and D
h)D and F
i)All of the above

12. Which of these can be considered part of a retailer’s “product”? (Select any that
apply)
a)The sales staff
b)The décor
c)The variety of stuff they sell
d)Reputation
e)Where the store is located
f)Their advertisements
g)Their clientele
h)The salespeople are supposed to smile when they greet you, and if they don’t you get
everything you can shove into a brown paper sack for free

13. Assuming that Xerox, Kleenex, and Band-Aid are words that are in the public
domain, it is because
a)These brands invented the categories they are in
b)The companies didn’t register their name under the Wheeler-Lea Act
c)Each of them at some point let their registrations under the Wheeler-Lea Act expire
d)It has been over 70 years since their inception, and so they can no longer be listed as
trademarks under U.S. Law
e)The owners did not bother to keep people from using those words synonymously with
the category

14. Which of the following is NOT a regrouping activity?
a)Accumulating – collecting products from many small producers
b)Bulk-breaking – Dividing larger quantities into smaller quantities
c)Sorting – Separating products into grades and qualities
d)Shifting – Moving products from separate locations to a single location
e)Assorting – Putting together a variety of products
15. The CEO of Morbidly Obese Sandwich Company wants to know if people will
buy more sandwiches if they pour water all over the floors and make them super
slippery at all times. The company is prepared to spend $50,000 on doing market
research. The best market research method to test this theory would be:
a) Survey
b) Observation
c) Focus Group
d) Experiment
e) Sandwich

16. A bicycle company that is experiencing weakening sales of their year-old bicycle
model wants to drum up sales this summer. They decide to take the remaining stock,
slap some training wheels on them, and sell them as “New and Improved.” Will the
FTC allow this?
a)Yes, but only for 6 months
b)Yes, because bicycles do not fall under the FTC’s jurisdiction, cf. Lehmann-Kohler Act
10:12-26.
c)No, the bikes haven’t been significantly changed
d)No, the bikes are more than 6 months old so they can’t be sold as new
e)There’s not enough information to tell

17. The Lanham act covers what area of the law?
A. Unfair competition
B. Price gouging
C. Monopoly
D. Copyright
E. Breaking and entering

18. Two months ago, no one knew what a ROFL-Maker was, but now every single
undergraduate at UW-Madison has one (some have 2 or 3!). LOLology, Inc.,
company that makes the ROFL-Maker is now facing competition from a few
competing products, like the Chairman LMAO doll, the LOLwat toy, and the
WTF!!!1111. What phase is this category of products likely in?
A. Market introduction
B. Market growth
C. Market maturity
D. Market decline
E. Market saturation
19. The single most important things you can do to avoid creating a product that is
likely to fail is to:
A. Gain the partnership of retailers before doing anything
B. Maintain TQM practices within the operational facility
C. Ensure that the product passes through the marketing pipeline before it goes to the
larger organization
D. Make sure the product offers a unique benefit
E. Be able to provide an awesome warranty

20. Your employer, Third Derailleur Bicycles, is teetering on the brink of
bankruptcy. You need some secondary data about the market in Madison, but you
can’t afford to pay much for it. You may be able to get it cheaply from:
A. Company files
B. The Bicycle Sales League, a trade association for bike shops
C. Various sources on the Internet somewhere
D. The government will probably have something
E. You might be able to get this kind of data CHEAPLY from any of these sources
F. Such data, unfortunately, is rarely cheap; it’s unlikely that you can CHEAPLY get it

21. Johnny Generic runs an unpopular blog in which he discusses all the latest news
in the world of pork rinds. He eats them all day every day. Even though he’s
familiar with all the brands of pork rinds, he buys whichever one is cheapest. One
day, when he’s in a gas station, he sees a bag of Exploding Hearts brand pork rinds.
Which describes Johnny’s relationship with this brand?
A. brand indifference
B. brand obsession
C. brand recognition
D. brand preference
E. brand rejection

22.The Cockroad Preservation Society collects roaches from many different insect
farms. Billions of them are brought to a single roach warehouse before they are sold
in bulk quantities to restaurants across the country. What type of regrouping
activity is this?
A. Bulk-breaking
B. Sorting
C. Retailing
D. Accumulating
E. Collecting
23. Which of the following exemplifies primary demand?
A. A company making database management software explains why you’d want to
manage data
B. A company that makes leather car seats sends out videos to car companies about the
high quality of their materials
C. A pizza restaurant sells appetizers that make you want the pizza even more
D. When people buy dog biscuits, it makes them want to buy a dog
E. The biggest search engine company in the world pretty much defines the search engine
category

24. The idea that when retailers enter the market, they come in as low-margin
businesses that only after time begin to make profit and are able to offer new
services is:
A. the wheel of fortune theory
B. the wheel of marketing theory
C. the wheel of retailing theory
D. the wheel in the sky theory
E. the wheels on the bus theory

25. A limited line store (Thoth’s) and a single line store (Seeble’s) are in competition.
Which of the following could best describe them?
A. Thoth’s sells pizzas; Seeble’s sells ovens
B. Thoth’s only sells Colombian neckties; Seeble’s sells menswear from everywhere
C. Thoth’s sells animatronic dinosaurs; Seeble’s repairs animatronic dinosaurs
D. Thoth’s sells pleather goods; Seeble’s sells only pleather belts
E. Thoth’s sells greasy fried foods that are covered in sauce and which sit under a heat
lamp all day; Seeble’s also sells greasy fried foods that are covered in sauce and which sit
under a heat lamp all day


SOLUTIONS:
1. E                                             14. D
2. B, E, G                                       15. D
3. B                                             16. A
4. A, B, C, D, E                                 17. D
5. D                                             18. B
6. A                                             19. D
7. E                                             20. E
8. D                                             21. C
9. C                                             22. D
10. C                                            23. A
11. A                                            24. C
12. All except F and G                           25. B
13. E

								
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