Marketing Final Exam

For the circuses a opportunity analysis b value of

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Unformatted text preview: the circuses. a. opportunity analysis b. value of marketing c. marketing environment d. target market e. marketing mix ANS: E Marketing mix elements include product, place, promotion, and price. PTS: 1 REF: 12 OBJ: 01-3 TOP: AACSB Reflective Thinking KEY: CB&E Model Product | CB&E Model Distribution | CB&E Model Pricing | CB&E Model Promotion MSC: BLOOMS Application Starbucks Loyalty Rewards The first Starbucks opened in 1970 in Seattle, Washington. The demand for its coffee grew, and Starbucks added more than 6,000 stores located in over 30 countries. In its more than 30-year history, Starbucks has never given out coupons for its coffee. Starbucks needed only to make its coffee and customers came. Recently, consumer quality perception of the Starbucks brand has started to fall. Starbucks started a consumer response blog to learn more about what consumers expect from Starbucks. One of the most common requests was for a customer rewards program. In response, Starbucks started My Starbucks Rewards, which offers free refills on brewed coffee, free beverage with whole bean purchase, beverage customization, and free Wi-Fi. Starbucks also put coupons in a national newspaper for those consumers who love coupons and created a new brew of coffee for those who prefer a milder coffee taste. Starbucks is hoping that these improvements will restore customers’ loyalty and confidence. 101. Refer to Starbucks. Which of the four conditions did NOT exist in the minds of the Starbucks consumer, resulting in declining sales? a. Each party having something of value to give to the other party b. Each party being capable of communication and delivery c. Each party being free to accept or reject the d. e. exchange offer Each party believing it to be appropriate or desirable to deal with the other party There being at least two parties for exchange to occur ANS: A Starbucks customers were not seeing the value of exchanging their money for Starbucks products. PTS: 1 REF: 4 Thinking KEY: CB&E Model Customer OBJ: 01-1 TOP: AACSB Reflective MSC: BLOOMS Application 102. Refer to Starbucks. For more than 30 years, Starbucks held the orientation of “If we build it, they will come.” This philosophy is most in line with a _____ orientation. a. sales b. market c. production d. societal e. product ANS: C A production orientation means that management asks, “What do we do best?” In the Starbucks case, the company made great coffee and created an atmosphere where people wanted to spend time and money. PTS: 1 REF: 5 Thinking KEY: CB&E Model Strategy OBJ: 01-2 TOP: AACSB Reflective MSC: BLOOMS Application 103. Refer to Starbucks. Starbucks customers wanted more value from their coffee. Starbucks management responded to customers through the Starbucks card rewards program. Which element of value was Starbucks management working to increase? a. Offering products that perform b. Earning trust c. Avoiding unrealistic pricing d. Giving the buyer facts e. Co-creati...
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