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Furniture is an example of a shopping product. Independent off-price retailers purchase merchandise at rates that are substantially higher than regular wholesale rates. Answer: FALSE Sales promotion is the best promotion tool to build personal and long-lasting relationships with customers. […]

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers. A consumer’s buying behavior is often influenced by reference groups to which the consumer does not belong. Answer: TRUE Price escalation […]

Sequential product development, which is a team-oriented approach, enables firms to bring products to market very quickly. Product development usually costs the least among all the steps of the new product development process. Answer: FALSE Marketing researchers can conduct their […]

In the marketing mix, product refers to the goods and services the company offers to the target market, while promotion refers to advertising. Direct-mail programs are typically stand-alone programs and cannot be integrated with a broader marketing campaign. Answer: FALSE […]

Of the three levels of products and services, the most basic level is the “actual product.” In the four Ps of the marketing mix, promotion refers solely to advertising. Answer: FALSE Line extensions occur when a company extends existing brand […]

The most effective sources of information about a product tend to be ________ sources. A) commercial B) public C) experimental D) personal E) paid In which of the following cases is little or no test marketing most likely recommended for […]

Ideally, a sample should be representative so that a researcher can make accurate estimates of the thoughts and behaviors of the larger population. Shopper marketing involves focusing the entire marketing process’“from product and brand development to logistics, promotion, and merchandising’“toward […]

Harmon, a nationwide department store, uses checkout scanners to record shoppers’ purchases. Which term best describes Harmon’s checkout scanners? A) nonprobability sampling tool B) mechanical instrument C) neuromarketing tool D) touch point device E) CRM system Which of the following […]

Selling accessory products along with the main product is referred to as ________ pricing. A) product bundle B) optional-product C) market-penetration D) by-product E) product line Service perishability means that ________. A) service evaluation is highly subjective B) the quality […]

Which of the following statements about buying centers is true? A) The buying center is a fixed and formally identified unit within a buying organization. B) Roles in the buying center are specified in the organizational chart of a firm. […]

________ is best suited for descriptive research. A) An online discussion B) Ethnographic research C) Netnography research D) A survey E) A focus group Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and […]

In the context of execution styles in advertising, using an animated character that represents a product in an advertisement is an example of an endorsement. Order takers typically participate in creative selling, social selling, and relationship marketing. Answer: FALSE Light […]

According to the text, an organization’s mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create. Customer-driving companies create products and services that serve only the existing needs of consumers. Answer: FALSE SBUs […]

Product line stretching involves adding more items within the present range of the line. When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries. Answer: […]

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through […]

In which of the following steps of the selling process does a salesperson make sure that there is proper installation and support after a buyer receives the initial order? A) closing B) follow-up C) handling objections D) presentation E) prospecting […]

Voluntary chains are normally based on one unique product or a specific trade name. Life insurance is an example of a convenience product. Answer: FALSE Customer-centered logistics starts with the marketplace and works backward to the factory. Answer: TRUE When […]

For inbound telephone marketing, the company provides a toll-free phone number so it can receive orders solicited by television and print ads, direct mail, and catalogs. Deceptive packaging includes exaggerating package contents through subtle design and misleading labels. Answer: TRUE […]

The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade. Keeping the database current requires dedicated resources because data ages quickly. Answer: TRUE The […]

Which of the following is a personal factor that influences a consumer’s buying behavior? A) life-cycle stage B) motivation C) status D) family E) social networks The objective of ________ advertising is to build primary demand. A) reminder B) comparative […]

Sales promotions targeted toward final buyers are called consumer promotions. The single most important demographic trend in the United States is the changing age structure of the population. Answer: TRUE Channels of distribution within countries are similar across nations. Answer: […]

In which of the following cases is crowdsourcing used for new product development? A) A company creates a forum where anyone can contribute new product ideas. B) A company hires a marketing agency to generate new product ideas. C) A […]

Which of the following is an example of a shopping product? A) toothpaste B) fast food C) laundry detergent D) television E) candy ________ is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, […]

Department stores are most likely characterized by ________. A) narrow product lines B) specialty goods and services C) predatory pricing strategies D) deep assortments of luxury brands E) wide varieties of product lines Jeff Barkins is a conscientious marketing manager. […]

A company that adopts a reactive marketing stance would most likely view the marketing environment as an uncontrollable element to which it must adapt. Supply chain management involves managing both upstream and downstream value-added flows of materials. Answer: TRUE According […]

Which of the following is a commercial source of product information? A) acquaintances B) family and friends C) dealer Web sites D) consumer rating organizations E) Internet searches C & G Retail, a chain of local supermarkets, procures all its […]

Xenon Corp. releases frequent updates to improve its expensive software products. This marketing approach used by the firm is most likely based on the production concept. The largest, fastest-growing market segments are generally the most attractive ones for smaller companies. […]

Which of the following would a firm most likely use to share video content? A) corporate intranets B) social media sites C) viral blogs D) media portals E) digital kiosks When a company chooses to divest a particular strategic business […]

In the progress toward environmental sustainability, a company must first develop a sustainability vision, which serves as a guide to the future. Secondary data consist of information collected for the specific purpose at hand. Answer: FALSE Government regulations are intended […]

Acquisition is one of the ways through which a company obtains new products. When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the alternative evaluation […]

Sales managers use sales reports, personal observations, and customer surveys to assess the performance of sales force members. A company that has no intermediary levels sells its products directly to its customers. Answer: TRUE Intensive distribution occurs when only one […]

Online and other e-learning approaches increase the costs of training salespeople. The affordable method of setting an advertising budget depends on the total revenues of a company. Answer: TRUE Many companies have started to target the LGBT market segment which […]

Companies that use income segmentation always target the affluent. The primary objective of causal research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. Answer: FALSE […]

When a company chooses a target marketing strategy for a product, its choices are most likely influenced by the product’s life-cycle stage. With a vendor-managed inventory system, the supplier takes full responsibility for managing inventories and deliveries. Answer: TRUE The […]

________ marketing is defined as socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Customer-driven B) Mass C) Sustainable D) […]

An effective MIS assesses information needs, develops needed information, and distributes the information to help managers with decision making. A role consists of the activities people are expected to perform according to the people around them. Answer: TRUE Business and […]

A company’s customer value delivery network does not include members external to the organization. Off-price retailers can be found in all areas, from food, clothing, and electronics to no-frills banking and discount brokerages. Answer: TRUE Early adopters are opinion leaders […]

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing Which packaging component identifies the product or […]

Critics who assert that the marketing system promotes too much interest in material possessions are most likely concerned that the result of successful marketing will be ________. A) high-pressure selling tactics B) unsustainable overconsumption C) perceived obsolescence D) planned obsolescence […]

Which of the following terms best describes the process of designing and producing a container or wrapper for a product? A) labeling B) positioning C) licensing D) packaging E) branding Which of the following is a primary characteristic of strategic […]

Pricing decisions of specialty stores are typically based on low markups on a high volume of products. A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers. Answer: FALSE Most firms […]

Which of the following is a traditional right of sellers? A) the right to introduce any product in any size and style, provided it is not hazardous to personal health or safety B) the right to expect a product to […]

A country’s industrial structure is an economic factor that reflects its attractiveness as a market. A channel level is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. Answer: […]

Direct marketing is characterized by narrowly defined segments or individual buyers. Companies that export goods to one country cannot have a subsidiary in another country because of international trade agreements. Answer: FALSE Brokers and agents usually take title to goods […]

Retail convergence most likely leads to ________. A) reduced differentiation B) reduced competition C) increased sales D) increased profit margins E) reduced advertising costs Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of blenders called SpinPro. […]

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members. A) direct B) contractual vertical C) horizontal D) corporate vertical E) administered vertical Environmentalists assert […]

Which of the following is generally regarded as the toughest issue of public policy and ethics confronting the direct marketing industry? A) customization of search results B) unwanted e-mail spam C) invasion of consumer privacy D) increasing costs of browsing […]

Public relations can have a strong impact on public awareness at a much lower cost than advertising can. Sales promotions constitute the interpersonal arm of the promotional mix. Answer: FALSE From a producer’s point of view, a greater number of […]