Question 1

Form utility is _________________.

Accepted Answer

Form utility refers to the value added to a product or service by changing its form or shape. Production's task in transforming raw material into an offering that has value creates form utility. The other options are related to other types of utility, such as place, price, and communication.

Question 2

José and Maria's son Jorge is a talented swimmer.The pool where he takes swimming lessons is 45 miles from their home in suburban Atlanta.________ utility is NOT part of the round trip they make six days a week.

Accepted Answer

The answer of José and Maria's son Jorge is a...

Question 3

According to Michael Porter,the first step of marketing planning is the establishment of goals and objectives.

Accepted Answer

Michael Porter is known for his work on competitive strategy, not specifically marketing planning. The establishment of goals and objectives is a general step in planning but not specifically attributed to Porter.

Question 4

Shabreka,a senior partner with a law firm,likes to shop in a designer boutique located in a city 30 miles from her home.This store offers _________ utility.

Accepted Answer

The answer of Shabreka,a senior partner with a law firm,likes...

Question 5

Jack attributes the success of his pre-owned automobile business to the clear low-key messages created by a small advertising agency.Lately a new media buyer at the agency has changed the key radio stations where Jack's Auto ads are played and his sales are slipping.The problem occurs in the ____________ activity of the value chain.

Accepted Answer

The problem with the media buyer changing the key radio stations where Jack's Auto ads are played is related to the marketing and sales activity of the value chain because it affects the way the business is promoting and selling its products.

Question 6

Martha purchases books,music,and videos at a large bookstore chain.Although the store nearest to her house is less than five miles away it is a bit out of the way.The location where she shops most frequently is 120 miles north of her home.It is located just off the highway and a good place to take a break when she drives 270 miles to visit her parents once a month.The store that is further away from her home offers ____________ utility.

Accepted Answer

The further away store offers place utility as it is conveniently located off the highway and serves as a good break spot for Martha during her monthly long drive.

Question 7

The concept of value chain was created by ___________.

Accepted Answer

Michael Porter is credited with creating the concept of value chain in his book "Competitive Advantage: Creating and Sustaining Superior Performance" published in 1985.

Question 8

Lately the demand for building materials has dropped due to the slow down in new housing construction.Wood-O Corp.is thinking of closing its building materials division as it has been making a loss.Mostly likely the building materials division would be classified as a ____________.

Accepted Answer

According to the BCG matrix, a "Dog" represents a business unit that has a small market share in a low-growth market. In this case, the building materials division is experiencing a drop in demand due to the slow down in new housing construction, which indicates a low-growth market. Additionally, the fact that it is making a loss shows that it has a small market share, hence it would most likely be classified as a "Dog."

Question 9

Enrico pays a market rate to take his young children to daycare that is run by his employer.It is open until 9:00 p.m.,a time by which everyone leaves.This service offered by his company offers ________________ utility.

Accepted Answer

The daycare service offered by Enrico's employer provides utility in terms of both time and place. Enrico is able to leave his children in a safe and convenient location while he works, and the daycare services are available until 9:00 p.m. This saves Enrico time as he does not have to find alternative daycare arrangements after work and can still attend to any work-related tasks that may take him into the evening.

Question 10

___________ is NOT one of the five primary activities in the value chain.

Accepted Answer

The five primary activities in the value chain are inbound logistics, operations, outbound logistics, marketing and sales, and service. Human resource management is a supportive activity that helps to enable and enhance the primary activities. Therefore, C is not one of the five primary activities.

Question 11

JTR Recording Company plans to close down a division that makes classical music cassette tapes.The demand for this type of recording has dwindled to the point that the cassette division is barely at break even in terms of revenue.Mostly likely the cassette division would be classified as a ____________.

Accepted Answer

A dog is a term used to describe a business unit with a low market share in a low-growth industry. Since the demand for classical music cassette tapes has dwindled to the point where the division is barely at break even in terms of revenue, it is clear that it does not have a high market share, and the industry is not growing. Therefore, the cassette division is most likely a dog.

Question 12

A window manufacturer has trouble getting raw materials for production.The problem occurs in the ____________ activity of the value chain.

Accepted Answer

Inbound logistics involves the activities related to the acquisition, storage, and transportation of raw materials, which is where the problem in obtaining raw materials is occurring.

Question 13

Ajax Corp.has a subsidiary,Ajax TV Products,which makes cable television converter boxes.This division has provided the parent company with a steady revenue stream for over thirty years and it is expected to continue its contribution to revenue even in future.Ajax TV Products most likely would be classified as a ____________.

Accepted Answer

Ajax TV Products has been providing a steady revenue stream for over thirty years, indicating that it is a well-established and profitable business. As per the BCG matrix, such businesses are classified as cash cows.

Question 14

Miriam and Gregory are partners in a manufacturing firm that supplies electronic parts to over 1,500 companies.Recently,employees have been complaining that they were not told of changes in health insurance coverage and premiums.They attribute this to a problem with _____________.

Accepted Answer

The issue of employees not being informed about changes in health insurance coverage and premiums suggests a problem with the human resources management function of the firm, which is responsible for managing employee benefits and communication. While other factors such as firm infrastructure, technology development, inbound logistics, and procurement could impact the overall operation of the firm, they are less likely to be directly relevant to this specific issue.

Question 15

Mammoth Foods,a major agricultural corporation,recently purchased MJS Organic Foods Co.MJS was established six years ago and has become a major supplier to restaurants in the northeastern United States.The organic herbs,vegetables,and fruit market is expected to have a double-digit growth rate over the next decade.Most like,MJS would be classified as a ___________ under the Boston Consulting Group model.

Accepted Answer

MJS Organic Foods Co. is a major supplier in a growing market, indicating high market share and high market growth. This fits the criteria of a "star" in the Boston Consulting Group model.

Question 16

According to Ansoff's Product-Market matrix,market development strategies allow the firm to introduce existing products to new customers,often including international markets.

Accepted Answer

Ansoff's Product-Market matrix identifies four different growth strategies including Market Development which involves introducing existing products to new customers or markets, which can include international markets. Therefore, the statement is true.

Question 17

Dave is a close-up magician who is famous for his card tricks.He creates and sells DVDs of his magic tricks.Lately he has been having trouble getting the DVDs produced in a timely manner.The problem occurs in the ____________ activity of the value chain.

Accepted Answer

The production of the DVDs falls under the operations activity of the value chain, which includes all the activities involved in transforming inputs into the final product or service. Dave is having trouble getting the DVDs produced, which indicates a problem in the operations activity of the value chain.

Question 18

Value may be defined as the ratio of bundled benefits received to the cost incurred by the customer to receive those benefits.____________ is NOT thought of as one of the costs.

Accepted Answer

Convenience is generally considered a benefit rather than a cost, as it adds value to the customer's experience by making the process easier or more efficient.

Question 19

Hot and Cold Corp.makes disposable coffee and soft drink cups for use in fast food restaurants,hospitals,convenience stores and the like.The company is working on a new product that will biodegrade within five years of being put in a landfill.This promising new product line would most likely be classified as a ______________.

Accepted Answer

A new product line that is promising and has the potential for success would likely be classified as a Star.

Question 20

Market penetration strategies allow the firm to invest additional resources to have existing customers consume new products.

Accepted Answer

Market penetration strategies focus on increasing sales of existing products to existing customers, not introducing new products.

Quiz 2: Elements of Marketing Strategy and Planning