Question 1
Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who receive exclusive news, previews, and opportunities to win prizes. The Foo Fighters are using ________ to reach Generation Y.
student ambassadors
unconventional sports
cool events
computer games
online buzz
Question 2
Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation.
demographic
behavioral
psychographic
geographic
cultural
Question 3
________ sales force consists of manufacturers’ reps, sales agents, and brokers who earn a commission based on sales.
Virtual
Domestic
Contingent
Contractual
Decentralized
Question 4
Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. How can Keiko reduce the total customer cost for LZT?
by absorbing some risk by offering a warranty
by improving the functional aspects of the products
by augmenting the psychological benefits of the products
by training service personnel to improve their skills
by investing in brand building for the products
Question 5
The 80-20 rule reflects the idea that ________.
20 percent of the company’s profits are generated by the top 80 percent of customers
the top 20 percent of customers are highly satisfied and 80 percent of customers will recommend the company to a friend
20 percent of customers are unprofitable, and 80 percent make up a company’s profits
the top 20 percent of customers often generate 80 percent of the company’s profits
any new product will be accepted by 20 percent of the customers immediately, but 80 percent of the customers will be up for grabs throughout the product’s life cycle