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When you view a selection at Amazon.com and see “Customers who bought this (item) also bought “, you are seeing the application of __________. a. real-time e-commerce b. connectivity c. interactive marketing d. personalization e. collaborative filtering Answer: The four […]

Which of the following products is an example of a low-involvement purchase? a. Mercedes-Benz automobile b. buying a share in NetJets c. buying a membership into a local country club d. a vacation to Europe e. Colgate toothpaste Answer: Which […]

A manufacturer does marketing research and estimates that consumers will accept a manufacturer’s suggested retail price of $50 for a jacket. The manufacturer expects to offer trade discount terms of 40/10/5 to retailers, wholesalers, and agents in the marketing channel. […]

Figure 1. Figure 1. above shows the sequential process of building brand equity. The second step is to establish a brand’s meaning in the minds of consumers. This step consists of two dimensions, “D” and “E,” which stand for __________ […]

The description of how new retail outlets enter the market is referred to as the __________. a. retail life cycle b. product life cycle c. wheel of retailing d. retail life matrix e. retail continuum Answer: Marketers produce a customer […]

In the automobile industry, many companies use a __________, whereby a manufacturer licenses dealers to sell its cars subject to various sales and service conditions. a. service-sponsored producer franchise system b. service-sponsored retail franchise system c. manufacturer-sponsored wholesale franchise system […]

The added value a brand name gives to a product beyond the functional benefits provided is referred to as __________. a. brand cach b. brand net worth c. brand equity d. brand benefit e. brand enhancement Answer: The marketing concept […]

A mother handed her college-aged son a piece of paper and said, “By redeeming this you will receive 25 cents off your next purchase of Birds Eye lima beans.” Birds Eye is using a __________ to stimulate demand for its […]

Figure 1. Figure 1. above depicts four common marketing channels for consumer products and services that differ by the kind and number of intermediaries. Channel “A” would be an appropriate marketing channel for which of the following? a. automobiles b. […]

The second step of the marketing research approach is to __________. a. develop findings b. define the problem c. take marketing actions d. develop the research plan e. collect relevant information Answer: Warranties, money-back guarantees, extensive usage instructions, demonstrations, and […]

The generation of children born between 1946 and 1964 is referred to as a. baby busters. b. millennials. c. Generation Y. d. baby boomers. e. Generation X. Answer: Until federal laws and regulations were clarified to cover such cases, audio […]

Dell Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers. The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted. Dell was most likely concerned with consumers’ […]

Yoplait Yogurt, Thomas’s English Muffins, Kellogg’s Rice Krispies, Egg McMuffins at MacDonald’s, private label “bagged” cereal, and Lender’s Bagels all relate to General Mills’ Cheerios because a. they must all deal with issues of childhood food allergies. b. they all […]

There are five common approaches to posttests: aided recall, unaided recall, __________, inquiry tests, and sales tests. a. exposure tests b. attitude tests c. performance tests d. jury tests e. comparison tests Answer: Research indicates that publicity followed by advertising […]

A company can protect its competitive position under __________, which gives inventors the right to exclude others from making, using, or selling products that infringe the patented invention. a. copyright law b. patent law c. criminal law d. commercial law […]

Figure 1. In Figure 1. above, “D” represents which stage of the consumer purchase decision process? a. purchase decision b. information search c. problem recognition d. alternative evaluation e. postpurchase behavior Answer: Recall the famous experiment when Dr. Pavlov presented […]

To lower costs and reduce manufacturing time, Michelin has people work together on important purchases. These people include individuals in the roles of buyers, deciders, gatekeepers, and others, as needed. This type of cross-functional group is known as a(n) a. […]

During the evaluation phase of an IMC program, a firm will __________ and make needed changes. a. posttest the promotion b. design the promotion c. state the mission e. carry out the promotion d. identify possible advertising or promotional firms […]

Most specialty stores and department stores, which provide many services to their customers, are considered to be __________. a. exclusive-service retailers b. limited-service retailers c. full-service retailers d. full-domain retailers e. upscale-retailers Answer: The first Mountain Dew Dewmocracy campaign asked […]

Capacity Management Marketing Dashboard Assuming the information shown in the JetBlue capacity management marketing dashboard above will not change in the near future, what actions would recommend that JetBlue take? a. Proceed as in the past; JetBlue is clearly profitable. […]

A management approach in which a manger is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is […]

If a fraternity or sorority wanted to attract new members, it should focus on people who view its current members as a(n) __________ group. a. membership b. aspiration c. dissociative d. reference e. involvement Answer: Once a market researcher has […]

Which of the following statements represents a possible measure of success in Step 1define the problem of the five-step marketing research approach? a. You have three weeks and $10,000 to determine if it is going to be profitable to serve […]

Specialized functions such as marketing and finance are generally referred to as __________. a. teams b. groups c. divisions d. departments e. business units Answer: Figure 1. Based on the information in Figure 1. above, the planning gap between 2003 […]

The __________ focuses on performing services that provide a unique experience. a. intangibility economy b. experience economy c. virtual economy d. magic of marketing e. authentic economy Answer: In the communication process, _________ ensure(s) that messages are decoded properly. a. […]

Which of the following statements about marketing activities is most accurate? a. Marketing is affected by society but rarely, if ever, affects society as a whole. b. The marketing department works closely with other departments and employees to implement marketing […]

Which of the following statements best describes a whistle-blower? a. An employee is unhappy because his company is downsizing. b. An employee tells the Consumer Product Safety Commission his company falsified safety reports on a child’s car seat. c. A […]

The fourth step of the marketing research approach is to __________. a. develop findings b. define the problem c. take marketing actions d. develop the research plan e. collect relevant information Answer: Which of the following is an example of […]

The four utilities marketing creates are a. product, price, promotion, and place. b. form, function, value, and people. c. monopoly, monopolistic competition, pure competition, and oligopoly. d. form, place, time, and possession. e. natural gas, fossil fuel, electricity, and water. […]

An arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors is referred to as a(n) __________. a. tying arrangement b. requirement contracting c. exclusive dealing d. territorial dealership contracting e. selective distribution […]

Evergreen Air Center in Marana, Arizona, is the world’s biggest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 a month for its storage service. The warm, dry air where the operation is located serves as a […]

Errors in communication can occur in several ways: (1) the source may not adequately transform the abstract idea into an effective set of symbols, (2) __________, (3) the receiver may not properly transform the set of symbols into the correct […]

Figure 1. Consider Figure 1. above. Suppose a manufacturer quotes price in the following form: List price$100 less 30/10/5. What does “C” represent? a. the wholesaler’s trade discount b. the retailer’s trade discount c. the jobber’s trade discount d. the […]

The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. “Dogs” are SBUs that are classified as having a. […]

Off-price retailers, warehouse clubs, and grocery stores that require customers to bag their groceries provide what level of retail service? a. full-service b. limited-service c. customized-service d. self-service e. automated-service Answer: Intermediaries that represent a single producer and are responsible […]

The relationship between a product line and product mix is a. product mixes include product lines. b. product lines include product mixes. c. product lines refer to consumer products; product mixes refer to industrial products. d. product mixes refer to […]

Employees who report unethical or illegal actions of their employers are referred to as a. whistle-blowers. b. scabs. c. cronies. d. corporate snitches. e. ombudsman. Answer: Whereas traditional media build credibility through “experts” being “influencers” in a particular field, with […]

Figure 1.A Figure 1.A above shows that when the quantity demanded moves from 3.0 to 4.5 million units along the demand curve D1, the profit a. increases from $1. to $2.00 per unit. b. decreases from $2.00 to $1. per […]

Tricon was the restaurant division of PepsiCo until it was spun off in 1997. Since then Tricon has opened 6,000 KFC restaurants abroad. It has 158 restaurants in Indonesia and more than 500 restaurants in China. All are locally owned […]

A car collector, Mr. F. Hansen, who said his 1975 Chevrolet Corvette was certified as the last Corvette convertible to be produced, sued General Motors to stop it from manufacturing any more of the convertible sports cars. The suit also […]

FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of a. demarketing. […]

Some websites enable a user to talk directly with a customer representative using an “online chat” service while shopping the site. This is an example of the __________ website design element. a. convenience b. connection c. control d. community e. […]

The range of offerings from the tangible to the intangible or product-dominant to service-dominant is referred to as the a. service continuum. b. product continuum. c. tangibility line. d. inseparability span. e. customer contact audit. Answer: 3M Company executives were […]

The reward to a business firm for the risk it undertakes in marketing its offerings is referred to as a. shareholders’ equity. b. profit. c. assets. d. contribution margin. e. goodwill. Answer: With a __________ pricing strategy, a price setter […]

Rents, executive salaries, and insurance are typical examples of a. variable costs. b. fixed costs. c. unit costs. d. marginal costs. e. total costs. Answer: The wholesalers that perform all channel functions and are found in the health foods, automotive […]

Which of the following is a characteristic of the growth stage of the product life cycle? a. Advertising emphasis switches to primary demand. b. a growing proportion of initial purchasers to repeat purchasers c. addition of new or modified product […]

When past experience is insufficient, the risk of making a wrong decision is high, and the cost of gathering information is low, a consumer is more likely to use an __________ for information. a. internal search b. informal search c. […]

Figure 1. In Figure 1. above, “C” represents the __________ influences that can affect the consumer purchase decision process. a. sociocultural b. economic c. environmental d. situational e. market dominated Answer: How a person establishes expectations for a service not […]

The sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold is referred to as a. fixed cost. b. total cost. c. marginal cost. d. unit cost. e. variable […]

In the telemarketing industry, issues such as __________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses. a. competitive antics b. coercion tactics c. freedom of speech d. […]

The first step in the sequential building process of brand equity involves __________. a. developing positive brand awareness b. creating a consumer-brand connection c. easing consumers’ decision making d. eliciting the proper consumer responses to a brand’s identity and meaning […]

Spruceland Millworks in Canada makes wooden pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as a. reactive demand, which is tied to the sales of appliances, not […]

Which of the following statements regarding salesforce compensation plans is most accurate? a. The most preferred compensation plan among sales people is the straight commission plan. b. Nonmonetary rewards are not very effective as salesforce motivators. c. New recruits are […]

The reformulation of the original less sweet, more bitter Coca-Cola (now Coca-Cola Classic) into a new sweeter one (eventually called New Coke) was one of the biggest decisions in the firm’s history. Coke was responding to Pepsi’s gain in market […]

Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann’s mayonnaise. One criterion management wants to use to evaluate potential new geographic market segments is whether new equipment must be bought to serve each […]

Which of the following is a form of flexible pricing? a. odd-even pricing b. yield management pricing c. above-, at-, or below-market pricing d. target pricing e. cost-plus pricing Answer: When Theresa Martinez relocated from the East to the Midwest, […]

Archer Daniels Midland Co. (ADM) is the world’s largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey’s that manufacture consumer products containing chocolate. ADM is […]

3D HDTVs are in which stage of the product life cycle? a. introduction b. growth c. maturity d. decline e. harvest Answer: Industrial services are support products that include items such as a. stationery, paper clips, and brooms. b tools […]

Which of the following statements is MOST accurate? a. The name Gatorade was chosen because as an energy drink it “got you out the gatefast.” b. The name Gatorade was coined by a team who lost to the University of […]

A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as a. licensing. b. a […]

Which of the following would most likely be considered a consumer product? a. ball bearings b. back hoe c. printing press d. suitcase e. mainframe computer Answer: Among consumer products, advertising and wide distribution are especially important for a. durable […]

The communication capabilities of Internet-enabled technologies take three forms: (1) __________; (2) consumer-to-marketer buying and service requests; and (3) consumer-to-consumer chat rooms, instant messaging, and social networking websites. a. marketer-to-consumer e-mail notification b. government-to-marketer Do Not Spam monitoring c. phishing […]

DiGiorno rising crust pizza has been available in the freezer sections of supermarkets for quite a while. The product’s recent introduction of a DiGiorno cheese stuffed crust to its line of pizzas is an example of __________. a. a market-product […]

Prices in vending machines tend to be higher because a. machines are placed in high demand/traffic areas. b. maintenance, operating, and leasing costs are high. c. only small unit volume items are sold. d. customary pricing requires certain coin and […]

New product brands introduced as defensive moves to counteract and confront a firm’s competition are referred to as __________. a. co-brands b. private brands c. fighting brands d. brand extensions e. subbrands Answer: A moral philosophy that exists in the […]

Outside the United States, large retailers include __________ in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain. a. Aeon b. Toshei c. Seebi d. Goshen e. Toshi Answer: The set of environmental forces that consists of […]

The more a marketing plan is based on __________, the less uncertainty and fewer risks are associated with executing it. a. opinions b. intuition c. facts and valid assumptions d. past historical data e. alternative contingencies Answer: Multichannel marketing seeks […]

The relationship of annual marketing effort to annual sales revenue is assumed to be __________ of the sales response function. a. a horizontal straight line, where sales revenues stay the same regardless of the marketing effort b. a U-shaped curve, […]

When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, it is referred to as __________. a. distributor dissension b. marketing channel discord c. partnership divergence d. channel conflict e. channel […]

Sales promotions cannot be the sole basis for a promotional campaign because a. all sales promotions have legal time limit restrictions to prevent unfair trade practices. b. gains from the sales promotion are often temporary and sales drop off when […]

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price is called a. customer value. b. target marketing. c. benefit segmentation. d. value-based marketing. e. […]

Which of the following product categories accounts for the largest proportion of total online consumer sales? a. consumer electronics b. apparel, footwear, and accessories c. food and beverages d. music and video e. appliances and home improvement Answer: The emphasis […]

Contract manufacturing refers to a. offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee. b. contracting with a foreign firm to manufacture products according to stated […]

The type of good for which the consumer compares several alternatives on such criteria as price, quality, or style is a(n) a. shopping product. b. convenience product. c. specialty product. d. unsought product. e. B2B product. Answer: In the 1980s, […]

A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as a. deflation. b. inflation. c. prosperity. d. a recession. e. a depression. Answer: Cross-functional teams refer […]

Advertisers use a mix of media forms and vehicles to maximize the exposure of the message to the target audience while at the same time minimizing a. reach. b. frequency. c. costs. d. ratings. e. cost per share point. Answer: […]

An analysis of a prospective product shows that it is expected to grow by at least 10 percent each year over the next 5 years, and then enter the maturity phase of its product life cycle. This type of analysis […]

The local radio station broadcast a story about a dry-cleaner that had requested coat donations. The company offered to clean the coats and deliver them to people in need. The various addresses of the dry-cleaner chain were also broadcast so […]

According to research conducted by Canadian cultural anthropologists, Canadians place a high importance on personal relationships. This leads them to be extremely reluctant to buy through an impersonal medium like a telephone. For an insurance company that was hoping to […]

In the late 1950s and 1960s, television westerns were extremely popular. The shows were adventure shows with settings and costumes that were very unlike other shows at that time. There were Gunsmoke, Bonanza, Wagon Train, The Big Valley etc. When […]

Figure 1. According to Figure 1. above, what is the price of Newsweek when marginal revenue is $0? a. $0 b. $0.50 c. $1.0 d. $1.5 e. $2.00 Answer: The group of prospective buyers toward which a promotion program is […]

Sterile Feral, Inc. is a nonprofit organization that catches wild or stray cats, and then neuters, vaccinates, and releases them back into the wild. The personnel of the nonprofit organization are caring people who love animals and try to do […]

In setting research objectives, marketers have to be clear on the purpose of the research that leads to marketing actions. The three main types of marketing research include descriptive research, exploratory research, and __________ research. a. causal b. virtual c. […]

The acronym “SWOT” in the term “SWOT analysis” stands for __________. a. strengths, weaknesses, opportunities, and tactics b. strengths, weaknesses, options, and tactics c. strengths, weaknesses, opportunities, and threats d. simple, workable, optimal, and timely e. state the problem, work […]

The prescribed penalty for agents of foreign governments found guilty of economic espionage is a. up to 15 years in prison and fines up to $500,000. b. life in prison with chance of parole after 25 years. c. 25 years […]

Five pricing practices are closely scrutinized because of potential unethical or illegal actions. They include: (1) price fixing; (2) price discrimination; (3) deceptive pricing; (4) geographical pricing; and (5) __________. a. predatory pricing b. price discounting c. lateral price fixing […]

An organization’s foundation can be broken into three key elements. They are a. products, services, and ideas. b. business definition, long-term goals, and short-term objectives. c. board of directors, top management, and stakeholders. d. corporate-level strategies, SBU-level strategies, and functional-level […]

In a feedback loop, a response refers to a. the number of times a consumer must hear a message before it can be accurately decoded. b. the impact the message had on the receiver’s knowledge, attitude, or behaviors during the […]

Selling often serves as a stepping-stone to top management. In fact, approximately __________ of the chief executive officers (CEOs) in the largest U.S. corporations have significant sales and marketing experience in their work history. a. 5% b. 10% c. 15% […]

Product modification refers to a marketing strategy that __________. a. alters a product’s characteristic such as its quality, performance, or appearance to increase its value to customers and to increase sales b. manages a product’s life cycle to increase its […]

Figure 1. Figure 1. above represents the six steps in setting price. “C” represents the step at which a firm would a. estimate demand and revenue. b. identify pricing objectives and constraints. c. scan competitors for prices of similar products […]

David Windorski, an inventor at 3M, questioned dozens of students about how they study. They told him a. to make sure new 3M products were available at mass merchandisers such as Walmart. b. that the average backpack was already too […]

The three major tasks involved in the implementation stage of the sales management process are: salesforce recruitment and selection; salesforce training; and __________. a. setting sales objectives b. developing account management policies c. salesforce motivation and compensation d. salesforce evaluation […]

As the use of the Internet grows around the world, there must be as easy an exchange of ideas and information as possible between countries. One important issue is opt-in versus opt-out. In general, European websites have opt-in policies while […]

Geographical groupings refer to organizational groupings a. that group specific customer segments. b. in which sales territories are subdivided according to geographic location. c. that represent the different departments or business activities within a firm. d. in which a unit […]

In terms of promotion, which of the following type of consumer product stresses status and uniqueness of brand? a. specialty product b. convenience product c. shopping product d. unsought product e. discretionary product Answer: A __________ is a plan that […]

Robin wants to find the perfect gift for her grandparents’ 50thwedding anniversary. She started looking for the gift last month and expects to spend another couple of months if needed to find a gift they both will like. Robin is […]

All of the following are strategies a market challenger can use when marketing a low-involvement product EXCEPT: a. use sales promotion such as free samples, coupons, and rebates to encourage trial of their brand. b. link their brand attributes with […]

User generated content (UGC) refers to a. content found on a “personal profile” page. b. content found only on blogs and wikis. c. content that is created with the intention of achieving commercial profit. d. content found on forms of […]

Currently, the three largest television home shopping programs in the United States are a. QVC, HSN, and ShopNBC. b. Shop at Home, QVC, and HSN. c. Direct shopper, Shop at Home, and ShopNBC. d. Valuevision, Shop at Home, and QVC. […]

Profit refers to a. the point at which a company’s assets equal its liabilities plus shareholder equity. b. the difference between the list and final price of a product or service. c. the money earned when the economic order quantity […]

The Infant Formula Act, the Nutritional Labeling and Education Act, and the Fair Packaging and Labeling Act are all examples of a. consumer-oriented legislation. b. pricing-related legislation. c. distribution-related legislation. d. requirement contracts. e. fair trade legislation. Answer: The primary […]

The information needed for the marketing program, Step 3 of the planning phase, includes: (1) marketing mix actions and (2) __________. a. positioning studies b. market-product grids with target segments and product groupings c. detailed plans to execute the marketing […]

Which of the following people would MOST LIKELY be the best target market for tickets to the home games of the Indianapolis Colts professional football team? a. all people with an interest in professional football b. all people in the […]

Even though there are hundreds of different languages and dialects, the three major languages used in global diplomacy and commerce are a. English, Japanese, and German. b. English, French, and Spanish. c. Japanese, Spanish, and French. d. Japanese, Spanish, and […]

If Ben & Jerry’s sold a line of new “Occupy Ben & Jerry’s” T-shirts targeted to college students in Latvia, it would be using a __________ strategy. a. product development b. market development c. market penetration d. diversification e. market […]

Procter & Gamble is a consumer packaged goods company where innovation is a key competitive advantage. This allowed the firm to develop new products like Crest Whitestrips that consumers crave. P&G also uses its marketing expertise to develop unique product […]

Which of the following would be an example of an objective in Step 1 of the price-setting process? a. “We need to find the least expensive distributor.” b. “We need to make allowances for large quantity orders.” c. “We need […]

Figure 1. Figure 1. Intermediaries perform three basic functions. According to Figure 1. above, “A” represents a(n) __________. a. middleman function b. logistical function c. facilitating function d. operational function e. transactional function Answer: The North American Free Trade Agreement […]

All of the following are reasons for the state of perceived ethical business conduct EXCEPT: a. a growing tendency for business decisions to be judged publicly by groups with different values and interests. b. the increased pressure on business people […]

A __________ explains: (1) to whom a salesperson reports; (2) how a salesperson interacts with other company personnel; (3) the customers to be called on; (4) the specific activities to be carried out; (5) the physical and mental demands of […]

Figure 1.A In Figure 1.A above, “X” represents a. fixed cost b. marginal cost c. variable cost d. marginal revenue e. MR = MC Answer: Firms selected from __________ are sent a quotation request from the purchasing agent describing the […]

People who control the flow of information in the buying center, such as technical experts and secretaries, can keep salespeople and information from reaching others in the buying center and are referred to as __________. a. deciders b. obstructionists c. […]

There are three general forms of retail ownership: contractual system, independent retailer, and __________. a. dual ownership b. industry consortium c. retailing cooperative d. multi-national cartel e. corporate chain Answer: Central Ice Machine Company is located in Omaha, Nebraska and […]

According to the Federal Trade Commission, __________ percent of fraud complaints are Internet related, costing consumers $560 million. a. 35 b. 46 c. 55 d. 64 e. 75 Answer: The unauthorized use of intellectual property can severely affect the owners […]

To increase the number of dogs boarding at its facilities, Muntz Kennels mailed coupons to dog owners who lived within a 25-mile radius of the facility. The printing and postage costs for the mailing plus the coupon redemptions would appear […]

China is the world’s largest tobacco-producing country and has 300 million smokers. Approximately 700,000 Chinese die annually from smoking-related illnesses. This figure is expected to rise to more than 2 million by 2025. China restricts tobacco imports. U.S. trade negotiators […]

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs, manufacturers offer a. noncumulative discounts. b. cumulative discounts. c. trade discounts. d. seasonal discounts. e. functional discounts. Answer: Which of the following is the […]

The axes on a perceptual map are a. two product attributes, each listed in terms of their opposites. b. market share and market growth rate. c. sales and profitability. d. customer perceptions of the firm’s product versus the average of […]

Dual distribution can violate the Sherman Act and the Clayton Act if the a. prices charged for items sold through one channel are different from the prices charged for the same items in another channel. b. manufacturer’s behavior is viewed […]

Breyer’s introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer’s new product was in the __________ stage […]

Who wouldn”t want to eat Garlic Cake? Garlic Cake was supposed to be served as an hors d”oeuvre with sweet breads, spreads, and meats, but somehow the company forgot to tell and explain this to potential consumers. This product failure […]

SBUs with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as __________. a. dogs b. cash cows c. question marks d. stars e. hedgehogs […]

A television advertisement shows several teenagers searching through the refrigerator for something to quench their thirst. The refrigerator offers the youngsters many alternativessoft drinks, fruit drinks, sport drinks, and bottles of Sunny Delight drink. The ad, which shows the teens […]

An organization’s foundation includes all of the following EXCEPT: a. organizational culture. b. business definition. c. vision. d. core values. e. mission. Answer: An inventory-management system whereby the supplier determines the product amount and assortment a retailer needs and automatically […]

A picture or verbal description of a product or service a firm might offer for sale is referred to as a(n) a. constraint. b. proposition. c. new-product concept. d. alternative. e. protocol. Answer: A market-product grid is a framework to […]

This company was rated by Fortune as the world’s most admired company in 2011 and Bloomberg Businessweek perennially rates it as the most innovative company in the world. a. IBM b. Microsoft c. 3M d. Kodak e. Apple Answer: The […]

In a marketing context, the acronym IMC refers to __________. a. interactive media convergence b. internal marketing communications c. integrated marketing collaboration d. integrated marketing communications e. international marketing communications Answer: Ten general product and service categories dominate online consumer […]

The first stage of the new-product process is a. idea generation. b. screening and evaluation. c. business analysis. d. new-product strategy development. e. concept testing. Answer: Feature bloat is a. an exaggeration of a product’s performance capabilities. b. the overcharging […]

Figure 1. In Figure 1. above, “A” identifies a a. cost point. b. price point. c. value point. d. sensitivity point. e. break-even point. Answer: In terms of the diffusion of innovation, early adopters account for __________ of product adopters. […]

Clinique Cosmetics has a database of more than 600,000 people who registered on its website by providing selected personal information. The registration process requested that customers fill out a brief survey and check a box that allows Clinique to send […]

Which of the following statements about social class is most accurate? a. Members of the lower class have a more short-term time orientation and think in concrete rather than abstract terms. b. Members of the lower class are more likely […]

Which of the following statements best reflects the guideline for making plans controllable and flexible? a. “Our research shows the most efficient way to distribute the product is through rack jobbers, but at this point we don”t know how price […]

In what way are traditional and social media similar? a. They both require specialized training. b. They both rely upon contributions from established “experts” to create credibility and social authority. c. They both can reach either large or niche audiences. […]

Facebook consistently addresses issues related to user privacy because users post personal information to their Facebook accounts and a. have a right to know if Facebook changes the way their personal information is released. b. use search engines such as […]

Movie studios use market research to reduce their risk of losses by hiring firms like the National Research Group to conduct test screenings and tracking studies. Often, 300 to 400 prospective moviegoers are recruited to attend a ‘sneak preview” of […]

In a marketing context, goal setting involves setting measurable __________ to be achieved. a. marketing metrics b. marketing objectives c. marketing tactics d. marketing plans e. protocols Answer: Emily had an excellent year as a saleswoman in 2011, earning $97,000. […]

Firms selling consumer goods or services often try to reach thousands or millions of individuals or households. Firms selling to organizations a. try to reach tens of millions of wholesalers, retailers, and government units. b. are restricted to far fewer […]

The element of the marketing mix that describes a means of communication between the seller and buyer is known as a. a product. b. promotion. c. the price. d. the place or distribution. e. advertising. Answer: Vinyl records, cassette tapes, […]

Tests conducted after an advertisement has been shown to the target audience to determine whether an ad accomplished its intended purpose, are referred to as __________. a. jury testing b. tracking tests c. exposure testing d. posttests e. pretests Answer: […]

Dell used __________ to develop an online site to generate 13,464 ideas for new products and website and marketing improvements. a. brainstorming b. crowdsourcing c. group think d. outsourcing e. data mining Answer: Because young people are postponing marriage and […]

When Procter & Gamble Co. acquired the Old Spice brand, it decided to reposition the brand by using a different advertising message to see whether sales would then increase. The new advertising message is the __________ in this marketing experiment. […]

What is the nature of the “paid” aspect of advertising? a. Fees are paid for space or time. b. Fees are paid to salespeople as either salaries or commissions. c. Fees are paid to creative arts contributors but there is […]

The two central concerns of marketing are __________. a. increasing market share and making profits b. holding down costs while increasing profits c. developing products and finding suppliers d. discovering and satisfying consumer needs e. practicing ethics and sustainability Answer: […]

Direct-mail and catalog retailing are examples of __________. a. nonstore retailing b. intertype retailing c. online retailing d. print-media retailing e. dual retailing Answer: According to some predictions, which of the following statements regarding attitudes and the roles of men […]

The __________ element of the marketing mix includes features and packaging. a. product b. price c. promotion d. place e. people Answer: Selecting an approximate price level would occur during __________ of the price-setting process. a. Step 1 b. Step […]

In evaluating whether its Facebook and Twitter social media programs are working well, Carmex considered using various marketing metrics. One metric it considered was the percentage of Internet Carmex share of voice mentions that are positive, neutral, or negative. This […]

The Reynold’s Aluminum foil box has two side tabs that say “Press Here to Lock Roll” to keep the roll of foil in place during use. This demonstrates which elements of good packaging? a. perceptual benefits and functional benefits b. […]

Of all the online consumer lifestyle segments, __________ are most likely to view the Internet as a convenience tool. a. time-sensitive materialists b. ebivalent newbies c. click-and-mortar d. brand loyalists e. hooked, online, and single Answer: A competitive (or persuasive) […]

Technology can change existing products and the ways they are produced. Many companies are using technological developments to allow the __________ of products through the manufacturing cycle several times. a. pruning b. adding c. recycling d. precycling e. refining Answer: […]

Factors such as specifying product features, marketing strategy, and financial projections are a part of which stage of the new-product process? a. idea generation b. market testing c. business analysis d. development e. commercialization Answer: Which of the following statements […]

Walmart’s $421 billion in sales in 2010 surpassed the gross domestic product of all but __________ countries for that same year. a. 5 b. 12 c. 18 d. 29 e. 50 Answer: With a cost-oriented pricing strategy, a price setter […]

Which of the following statements about world trade flows is most accurate? a. The EU (European Union) is the world leader in terms of GDP (gross domestic product). b. The relative position of the United States as a supplier to […]

All of the following types of warranties are discussed in the text EXCEPT _____ warranties. a. limited-coverage b. express c. full d. implied e. lifetime Answer: Figure 1.B Consider Figure 1.B above. If a company chooses to employ its own […]

One of Porter’s generic business strategies involves controlling expenses and lowering product prices targeted at a narrow range of market segments. This is referred to as a __________ strategy. a. cost focus b. cost leadership focus c. differentiation focus d. […]

Creating product assortments from several sources to serve customers would be an example of a __________ function. a. transactional b. facilitating c. selling d. logistical e. risk taking Answer: What do the United States Post Service, the U.S. Park Service, […]

Which of the following is a commonly used method of classifying retail outlets? a. service versus product b. form of ownership c. proportion of national versus private label brands carried d. revenues generated e. profitability Answer: A level of distribution […]

Which of the following is an inherent strength of publicity? a. It can receive immediate feedback. b. It can provide the target audience with complex information. c. It can prepare messages quickly. d. It is an efficient means for reaching […]

An advantage of using a panel of consumers for marketing research is a. the discussion leader can help change negative panel responses into positive ones. b. the company can find out if consumers change their purchasing behavior over time. c. […]

Organizations that decide to franchise (franchisors) have __________ expansion costs accompanied by __________ control, compared to owning their own retail outlets. a. greater; greater b. reduced; reduced c. greater; reduced d. reduced; greater e. greater; about the same Answer: The […]

Four key challenges that package and label designers face include: (1) connecting with customers; (2) environmental concerns; (3) health, safety, and security issues; and (4) __________. a. social and societal issues b. competition from global markets c. cost reduction d. […]

Many firms such as Xerox use a cross-functional sales practice known as __________. a. collaborative selling b. team selling c. cooperative selling d. account selling e. formula selling Answer: “Epicurious” is a website where recipes are posted by the site […]

There are three major tasks involved in the implementation stage of the sales management process: salesforce motivation and compensation, salesforce training, and __________. a. salesforce recruitment and selection b. developing account management policies c. assignment of territories and/or accounts d. […]

A mission statement includes all of the following elements EXCEPT: a. short-term. b. inspirational. c. clear. d. meaningful. e. concise. Answer: Balance of trade refers to a. the sum of all a nation’s imports and exports. b. the difference between […]

Which of the following statements regarding corporate vertical marketing systems is most accurate? a. Corporate vertical marketing systems can use either forward integration or backward integration but not both. b. Corporate vertical marketing systems increase distribution costs. c. Corporate vertical […]

A statement indicating the liability of the manufacturer for product deficiencies is referred to as a(n) __________. a. warranty b. consumer bill of rights c. product liability statement d. manufacturer’s disclaimer e. guarantee Answer: A contractual arrangement between a parent […]

In some cases, penetration pricing may follow skimming pricing. The skimming pricing would help __________ and the penetration pricing would help__________. a. increase market share; attract price-insensitive customers b. attract price sensitive customers; increase market share c. recoup initial research […]

The classifications of innovators, early adopters, early majority, late majority, and laggards are all based upon __________ a. how frequently a consumer uses a product b. the number and strength of competitors c. when consumers begin buying a new product […]

Lost-horse forecasting involves a. admitting that the actions you have taken in the past have failed and removing those and similar actions from you list of alternatives. b. starting with the last known value of the item being forecast, listing […]

All of the following are forms of direct marketing EXCEPT: a. catalogs b. in-store free samples c. telemarketing d. paid searches e. direct mail Answer: Income used to buy luxury items such as a Regent cruise is referred to as […]

VALS Framework VALS creates profiles of people based on their primary motivation and resources. In the VALS framework above, “D” refers to a. Ideals. b. Achievement. c. Self-Expression. d. Survivors. e. Innovators. Answer: c Rationale: According to the VALS framework, […]

Figure 1. In Figure 1. above, “B” represents the __________ influences that can affect the consumer purchase decision process. a. economic b. situational c. environmental d. marketing mix e. market dominated Answer: Private branding refers to a branding strategy in […]

A penetration pricing policy is MOST LIKELY to be effective when a. lowering the price has only a minor effect on increasing sales volume and reducing unit costs. b. the high initial prices do not attract competitors. c. a low […]

Standard markup pricing refers to a. adjusting the price of a product so it is “in line” with that of its largest competitor. b. setting the price of a line of products at a number of different price points. c. […]

The average price Washburn Guitars charges for a guitar is $349.99. This pricing level is most reflective of a(n) __________ approach. a. skimming price b. penetration price c. prestige price d. odd-even pricing e. target price Answer: The process of […]

Figure 1. According to Figure 1. above, point “D” would most likely be __________. a. exporting b. joint venture c. direct investment d. franchising e. licensing Answer: What is the technology called that allows a marketer’s website to record a […]

For 18 months, Warner-Lambert Co. was required to include the following statement in all television advertisements for Listerine: “Listerine will not help prevent colds or sore throats or lessen their severity.” The FTC imposed this requirement because previous advertising had […]

The make-buy decision is typically made during which stage of the organizational buying decision process? a. information search b. supplier search c. alternative evaluation d. problem recognition e. purchase decision Answer: More than half of all new businesses fail within […]

Advertisements basically consist of two types: __________ and __________. a. re-purchase; postpurchase b. promotional; reinforcement c. promotional; informative d. product; service e. product; institutional Answer: The view that holds customers will abandon their efforts to enter and navigate a website […]

Reebok Website Image The Reebok website image above is an example of how the firm has effectively used __________ technology to allow its customers to customize their athletic shoes. a. wiki b. RSS feed c. choiceboard d. e-mail e. collaborative […]

Which of the following statements about the World Trade Organization (WTO) is most accurate? a. The World Trade organization is a temporary institution. b. The 153 member countries of the WTO account for less than 25 percent of world trade. […]

Replenishment time refers to a. the time lag from the inception of an idea until its initial commercialization. b. the time lag from ordering an item until it is received and ready for use or sale. c. the time between […]

Figure 1. According to Figure 1. above, which social network was closest to Facebook terms of unique U.S. visitors per month as of September 2011? a. LinkedIn b. YouTube c. Twitter d. Angry Birds e. Plants vs. Zombies Answer: When […]

Seminar selling is a method of personal selling in which __________. a. the company provides a free audit of the buyers’ purchase behaviors to identify any weaknesses and then provides formal training on more effective buying behaviors b. a group […]

Figure 1. Figure 1. above shows there are six stages in the personal selling process (“A” through “F”) along with the objective(s) of each stage. If the salesperson’s objective is to “gather information and decide how to approach the prospect,” […]

A need that moves an individual to action is a(n) __________. a. drive b. cue c. attitude d. response e. reinforcement Answer: Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to […]

Trading up refers to __________. a. adding product features but reducing the price b. changing the distribution channel members to higher-service-quality retailers c. adding value to the product (or line) through additional features or higher-quality materials d. reallocating marketing resources […]

In the U.S. alone, roughly 500 million computers will become obsolete by 2017. These computers contain more than 2 billion pounds of what will become lead waste that is harmful to the environment. As a result, computer manufacturers are being […]

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply’s power is its a. economic influence. b. expertise. c. identification with a particular channel member. d. […]

Customer service refers to a. adhering to the belief that the customer is always right. b. satisfying the customers’ needs no matter what the price. c. accepting full liability if a product fails to meet a customer’s expectations. d. the […]

Mixed branding refers to a branding strategy in which a firm __________. a. gives each product a distinct name when each brand is intended for a different market segment b. uses different brand names for the same product across multiple […]

Marissa, a college student, and her father, a wealthy businessman, were each considering the purchase of a new automobile. As a college student with limited financial resources, Marissa went from car dealer to car dealer in several different cities searching […]

A straight commission compensation plan is one __________. a. that assigns the same commission percentage regardless of a product’s value, number sold, or difficulty level of the sales effort b. in which a salesperson is paid a specified salary plus […]

In an e-marketplace, an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other is referred to as a a. vertical auction. b. reverse […]

Grape-Nuts was one of the first cereals Post Cereal Company ever marketed. It scores well in brand awareness studies, but recently its sales have been steadily declining. Rather than assume the product was a “dog,” the Grape-Nuts marketing manager decided […]

Which of the following are examples of elements involved in Step 1 of the price-setting process: identify pricing objectives? a. profit, market share, and survival b. estimation of demand, sales revenue, and price elasticity c. cost estimation, marginal analysis, and […]

There are five dimensions to emotional intelligence: self-motivation; self-awareness; the ability to manage one’s emotions and impulses; __________; and social skills. a. empathy b. sense of humor c. the ability to read body language d. the ability to be positive […]