Chug Enterprises is planning to create a new line of products and enter into the sports drink market. They plan to advertise the first product to teenagers as being the best-tasting sports drink in the market. The second product will be advertised to adults as being the lowest calorie sports drink one can buy. The third product will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each product will have separate, distinctive packaging. Chug Enterprises created the three products in a way that it appeals to separate target markets. This was done to prevent its products from competing with one another for market share. This shows that Chug Enterprises understands the importance of:
a. internal positioning.
b. external positioning.
c. inelasticity of demand.
d. selective demand stimulation.
Question 2Customers may be disappointed with a service for all of the following reasons EXCEPT
a. The customers may not have the ability to use the service correctly.
b. Customers may have difficulty getting along with other customers.
c. Customers enter the service establishment expecting a different service than the organization delivers.
d. All of these are reasons why customers may be disappointed with a service.
e. None of these are reasons why customers may be disappointed with a service.
Question 3Which two concepts receive primary consideration when determining store layout?
a. customer traffic and employee traffic
b. attractive dcor and effective lighting
c. customer traffic and attractive dcor
d. effective lighting and overall attractive atmosphere
Question 4A service setting that attracts one type of customer may repel another type of customer.
Indicate whether the statement is true or false
Question 5In 2007, the Michigan-based Ford Motor Company fell from second to third in the U.S. annual vehicle sales for the first time in 56 years. Facing stiff competition from foreign auto-makers and brand indifference amongst U.S. consumers, Ford appeared to be headed towards turbulent times. However, when marketing and advertising guru Jim Farley joined Ford in November 2007, he brought with him a number of fresh ideas that helped turn the company toward the right direction. Farley quickly found that Americans had become indifferent to the Ford brand, which in his opinion, was worse than disliking the brand. So, Farley, along with the rest of the marketing team at Ford, created a campaign that used catchy songs and cheerful images to accompany its line of automobiles. The marketing team at Ford is now heavily utilizing the Internet to promote the new Ford Fiesta, which is the focus of a campaign that has greatly increased the awareness of the Ford brand. The company has also been stressing the value of buying environment-friendly cars, a move it hopes will improve the brand's image throughout the world. So far, these moves appear to be workingin late 2010, Ford was once again named the second leading automotive company in the United States, as well as the fourth largest in the world. If the objective of Ford is to demonstrate that its newest line of cars is superior to that of a strong competitor, which of the following methods should Ford use?
a. Demonstration ads
b. Comparison ads
c. Reason-why ads
d. Point-of-purchase ads
Question 6Chug Enterprises is planning to create a new line of products and enter into the sports drink market. They plan to advertise the first product to teenagers as being the best-tasting sports drink in the market. The second product will be advertised to adults as being the lowest calorie sports drink one can buy. The third product will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each product will have separate, distinctive packaging. The company launched the third product for senior citizens in the Baltonian market and their efforts were highly successful. Chug Enterprises now plans to introduce it worldwide. However, the way senior citizens perceive products vary from culture to culture. Thus, Chug Enterprises should engage in:
a. cooperative advertising.
b. international advertising.
c. national advertising.
d. regional advertising.
Question 7Which of the following activities should a service organization consider using to maximize the productivity of its employees?
a. The service organization should challenge its employees to operate at the maximum end of the discretionary effort scale.
b. The service organization should institute a program of internal marketing.
c. The service organization should consider ways of harnessing technology to facilitate workers' appointed tasks.
d. All of these activities should be considered by service organizations that want to maximize employee productivity.
e. None of these activities should be considered by service organizations that want to maximize employee productivity.
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