. Which of the following is a limitation of marketing-mix modeling? It overlooks the importance of incremental growth. It is not capable of isolating the impact of specific marketing activities. It does not allow marketers to conduct multivariate analyses It is less effective at evaluating how different marketing elements work together. 12. Tarow is a leading manufacturer of designer handbags. The company has stores all over the world and is especially famous for the high-quality leather used in its handbags. However, the company soon realizes that a cheap liquor brand has been using its logo for the past six months. In this scenario, the company owning the liquor brand is guilty of __________. blurring tarnishment conscious parallelism reverse engineering 13. Gallide is a warehouse retailer that conducts special in-store demonstrations of certain products. This allows potential customers to see and feel the products for themselves and be convinced that the products are worth purchasing. The salespeople of the store receive a bonus if a customer buys the products after a demonstration. Which of the following is a likely reason that the store has adopted this approach for some of its products? Consumers are brand-conscious and display high brand loyalty in certain product categories. Consumers know which brand they want to purchase before they enter the store. Consumers are inclined to make many of their brand choices only when they are at the store. Consumers respond well to the use of product placement as an advertising technique. 14. Latia is a popular fruit juice brand in the food and beverage market. Once the brand reaches the maturity stage of the product life-cycle, its growth rate begins to decline slowly. The company that owns the brand decides to adopt a market modification approach by increasing the consumption rate among its existing customers. Which of the following strategies is most likely to help the company achieve its goal? Identifying new market segments and strategizing on the best ways to enter them Making changes to the packaging of Latia products Advertising the benefits of drinking Latia fruit juices more than once a day Listing out reasons for potential customers to try Latia fruit juices 15. Lanase, a leading producer of aerated drinks, decides to introduce fruit juices and bottled water into the market. The companys budget requires it to keep advertising and marketing costs as low as possible. It therefore decides to introduce the products under the company brand name. Which of the following is a likely consequence of the decision? Consumers will buy the products since the company name will be easily recognizable to them. If the products do not perform well in the market, the company will not be affected since it has not tied its reputation to the products. The companys goodwill will be unaffected since consumers will find it easy to differentiate one product from another. The development costs for future products will be extremely high. 16. Which of the following scenarios illustrates market-penetration pricing? Iratan, a manufacturer of smartphones, prices its latest models between $600 and $700. After a few months, it steadily reduces these prices. Aulaan, a newly established discount store, sells products at prices that are very low when compared to other stores. Bakers and Eaters, a confectionery company, offers high-quality chocolates at affordable rates. Ban World Hunger is a nonprofit organization that works to end world hunger. It relies on donations and government grants for financial support. 17. Eania Inc. manufactures toys and games for children. After achieving a high growth rate and establishing itself as a market favorite, Eania introduces a clothing brand for adults. In this scenario, Eania pursues a __________. market-penetration strategy market-development strategy product-development strategy diversification strategy