The Smart Fortwo car is a small two-passenger vehicle that was developed to provide convenient transportation, especially in crowded urban areas, and to be fuel efficient and environmentally friendly. In 2006 the United States became the 37thnation in which the Smart car was marketed, appealing substantially to consumers who were concerned about the environment and the high price of gas. Taken together, these facts suggest that the development and international marketing of this vehicle likely drew on the all of the following sources of informationexcept:

a.Observing economic trends.

b.Listening to customers.

c.Observing social and cultural trends.

d.Listening to Formula One racing enthusiasts.

Which of the following growth strategies would best describe the development and marketing of the fuel efficient, environmentally friendly Smart Fortwo car?

a.Market penetration.

b.Product development.

c.Market development.

d.Diversification.

In launching the Smart Fortwo car in the United States marketplace, the company took a holistic approach to the marketing mix by __________.

a.Offering only the Smart car model with the standard trim package, promoted through heavy television advertising to bring customers into its established dealer network.

b.Offering three different vehicle models, each with a different price point and a different package of standard equipment and options; promoted through print ads to make customers aware of the availability of the Smart Fortwo car as the dealer network was being established.

c.Offering three different vehicle models, each with a different price point and a different package of standard equipment and options; conducting a 50 city road tour where the vehicles were displayed and promoted; and using a reservation program to enable customers to move ahead in the sales process as the dealer network was being established.

d.Offering only the top-of-the-line Smart car model with the deluxe trim package; conducting a 50 city road tour where the vehicles were displayed and promoted; and using a reservation program to enable customers to move ahead in the sales process as the dealer network was being established.

When the Smart Fortwo vehicle entered the United States' market, customer acceptance of this new product should have been higher under all but one of the following conditions. Which condition wouldnotpromote higher customer acceptance of the Smart car?

a.The Smart car has a clear relative advantage over existing products.

b.The Smart car's restricted availability stimulates consumer interest because of its rarity.

c.The Smart car is not overly complex.

d.The Smart car is compatible with the customer's lifestyle.

Even though the United States is the 37thcountry in which the Smart car is being marketed, the US market is in the __________ of the product life cycle.

a.Market introduction phase.

b.Market growth phase.

c.Market maturity phase.

d.Market decline phase.

Word-of-mouth or "viral marketing" helps activate the process of the diffusion of innovations. All but one of the following statements about market reaction to the Smart car's introduction to the United States provides an example of viral marketing that encourages diffusion of innovation. Which one isnotan example of word-of-mouth or viral marketing that encourages this diffusion?

a.Consumers interested in purchasing a Smart car go to a dealership to talk to a sales representative.

b.Smart cars attract a lot of attention from curious onlookers.

c.Smart USA created a courtesy card program whereby current owners could pass along company information contacts to curious onlookers.

d.Curious onlookers usually ask a lot of questions of Smart car owners.

Which one of the following trends is unlikely to affect future demand for the Smart car in the United States' market?

a.A growing percentage of the population has the need and desire for fuel efficient, environmentally friendly vehicles.

b.Interest in the Smart Fortwo car cuts across all socioeconomic strata and all age groups.

c.The profit margin on Smart cars relative to competing vehicles.

d.Higher prices for other manufacturers' small, fuel efficient or hybrid vehicles.