Principles of Marketing 16th Edition

In Via del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies ________. A) pure competition B) monopolistic competition C)

Refer to the scenario below to answer the following question(s). Most clients of Second Avenue have learned about the store through word-of-mouth communication. This small retailer of quality secondhand children's clothing thrives on the sale of a vast inventory of children's clothing placed on consignment. "Because small children grow so quickly,"

The major influences on the buying process at General Aeronautics Limited include supply conditions and technological changes, which would both be categorized as ________ factors. A) organizational B) individual C) systemic D) interpersonal E) environmental Answer: E E E Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early,

Mission statements should ________ and be defined in terms of ________. A) be technology oriented; meeting the self-actualization needs of customers B) be product oriented; satisfying the esteem needs of customers C) embody the company's short-term plans; current opportunities D) be market oriented; satisfying basic customer needs E) address sales and profits; the net return

Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies? A) individual marketing B) one-to-one marketing C) mass marketing D) concentrated marketing E) trigger-based marketing Answer: D D D Business buyer

Marketing researchers can conduct their own searches of secondary data sources by using mail questionnaires and interviewing individuals. Answer: FALSE FALSE FALSE A market is the set of actual and potential buyers of a product or service. Answer: TRUE TRUE TRUE Subcultures consist only of religious groups. Answer: FALSE FALSE FALSE Cost-based pricing is often product driven. Answer: TRUE TRUE TRUE Marketing services agencies are the

Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________ activities used by retailers to promote themselves. A) public relations B) sales promotions C) personal selling D) affinity marketing E) social marketing Answer: A A A Most of the market is in the hands of the ________, the firm with the largest market share. A)

The ________ prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce. A) Sherman Antitrust Act B) Lanham Trademark Act C) Fair Packaging and Labeling Act D) CAN-SPAM Act E) Magnuson-Moss Warranty Act Answer: A A A Laws are passed to define and prevent unfair competition primarily because ________. A) business executives tend to favor

Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________. A) horizontal integration approach B) commercialization process C) guerrilla marketing technique D) blue ocean strategy E) lean dynamics

Which of the following is true about the product sales force structure? A) A product sales force structure is most appropriate for a company that manufactures a small number of simple products. B) In a product sales force structure, each salesperson is assigned to an exclusive geographic area and sells the company's

Which of the following actions should a marketer take in response to the new economy? A) Offer selected discounts. B) Cut marketing budgets. C) Hold the line on prices. D) Cut costs. E) Discontinue products. Answer: C C C The decision to use an NBA star player to communicate the desirability of Nike basketball shoes represents the ________ process

At its most basic form, a marketing channel consists of the producer and the ________. A) retailer B) sales agent C) competitor D) processor E) consumer Answer: E E E ________ logistics involves moving products from the factory to resellers and ultimately to customers. A) Customer-centered B) Outbound C) Upstream D) Reverse E) Inbound Answer: B B B Which of the following would lead to greater competition in

Multichannel marketing occurs when a single firm sets up two or more marketing channels to reach one or more customer segments. Answer: TRUE TRUE TRUE Jim is planning on buying an expensive HDTV and he realizes that there are few differences between brands. Jim is displaying complex buying behavior. Answer: FALSE FALSE FALSE The societal marketing concept calls

The more elastic the demand, the more it pays for the seller to raise the price. Answer: FALSE FALSE FALSE To increase its 'share of customer," a firm concentrates on retaining as many customers as possible over its lifetime. Answer: FALSE FALSE FALSE Integrating the promotion mix starts with suppliers. Answer: FALSE FALSE FALSE The integrated marketing concept ties together all of

In 1994, the North American Free Trade Agreement (NAFTA) established a free trade zone among the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. Answer: FALSE FALSE FALSE Most shopping centers are ________. A) strip malls B) regional shopping malls C) community shopping centers D) lifestyle centers E) power centers Answer: A A A ________ consists of

Refer to the scenario below to answer the following question(s). Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm

Which of the following statements is true regarding social classes in the United States? A) Social class is determined by income alone. B) Lines between social classes in the United States are fixed and rigid. C) Social classes show distinct product preferences in clothing and automobiles. D) Wealth is more critical than education level

Which of the following is an internal source for new product ideas? A) competitors B) company executives C) marketing research firms D) trade magazines E) government agencies Answer: B B B In which of the following geographic pricing strategies would customers located close to the company pay the same amount as customers in distant locations? A) uniform-delivered pricing B) zone pricing C)

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the policies developed by ________. A) the EU B) NAFTA C) CAFTA-DR D) APTA E) the BRIC countries Answer: B B B ________ sell

For her current research project, Margaret Rogers wants to select a sample in which every member has a known and equal chance of selection. In other words, Margaret is looking for a ________. A) simple random sample B) convenience sample C) stratified random sample D) judgment sample E) quota sample Answer: A A A Compare and contrast a tariff

In recent years, convenience stores have redesigned their stores to closely focus on serving their primary target market made up of young, blue-collar men. Answer: FALSE FALSE FALSE Convenience products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Answer: FALSE FALSE FALSE Kiosk marketing connects users around the

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness? A) growth B) product development C) maturity D) introduction E) decline Answer: D D D Which of the following is the first step taken in the competitive intelligence system? A) collect published data and information from the

Sales promotion involves building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Answer: FALSE FALSE FALSE The goal of competitive marketing intelligence is to evaluate and prevent high employee turnover. Answer: FALSE FALSE FALSE Abel is considering whether or not to get an e-reader. He has read online reviews of three

Which of the following is most likely an objective of informative advertising? A) build brand preference B) change customer perceptions of brand value C) encourage customers to switch brands D) suggest new uses for a product E) keep the brand in customer minds during off-seasons Answer: D D D One of the functions performed by a PR department is

Product stewardship involves minimizing not only pollution from production and product design but also all environmental impacts throughout the full product life cycle, and accepting increased costs. Answer: FALSE FALSE FALSE Neuromarketing involves measuring brain activity to learn how consumers feel and respond. Answer: TRUE TRUE TRUE Direct marketing seldom occurs on a one-to-one, interactive basis. Answer: FALSE FALSE FALSE The major activity

JumBo Games is in the commercialization stage. The first decision that the firm should make while introducing the product in the market is introduction timing. Answer: TRUE TRUE TRUE Sellers cannot influence or use consumers' reference prices when setting their product prices. Answer: FALSE FALSE FALSE Viral marketing allows marketers to send tailored messages to targeted customers who

Blair Housewares wants to add new products to its existing line of products. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number. Answer: FALSE FALSE FALSE Customer-perceived value is defined as the customer's evaluation of

Gary Hirshberg started the Stonyfield Farm yogurt company. His marketing strategy: building a casual bond with customers using guerilla marketing. This is an example of formulated marketing. Answer: FALSE FALSE FALSE Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to market.

Santana Automobile's Arrow is the first mass-produced hybrid vehicle, known for its fuel efficiency and environmental friendliness. The Arrow is most likely to become popular in the ________ market. A) SOHO B) LOHAS C) LGBT D) business E) Millennials' Answer: B B B ________ are goods offered either free or at low cost as an incentive to buy a

Good marketing communications can speed the demise of a poor product. Answer: TRUE TRUE TRUE Line extension refers to extending an existing brand name to new product categories. Answer: FALSE FALSE FALSE In the business buying process, business buyers determine which products and services their organizations need to purchase. Answer: TRUE TRUE TRUE Integrated marketing communications calls for recognizing all touchpoints where

Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies. Answer: TRUE TRUE TRUE Air carriers transport digital products from producer to customer via satellite, cable, phone wire, or wireless signal. Answer: FALSE FALSE FALSE The government market consists of schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services

An MIS is used to ________. A) generate product interest B) develop marketing plans C) identify demographic trends D) assess information needs E) test hypotheses about cause-and-effect relationships Answer: D D D Which of the following is true with regard to the product/expansion grid? A) It classifies SBUs into four distinct categories. B) It is a useful device for identifying growth

________ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. A) Cross B) Supply chain C) Price D) Product cycle E) Customer Answer: B B B Which of the following is an economic factor that a company should consider before deciding to

In industries in which pricing is a key factor, ________ often set the best prices or help others in setting them. A) sales departments B) salespeople C) production managers D) line managers E) pricing departments Answer: E E E After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had kept every promise

When backed by buying power, wants become ________. A) social needs B) demands C) physical needs D) self-esteem needs E) exchanges Answer: B B B Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells

Which of the following is true about business-to-business e-procurement? A) E-procurement increases transaction costs for suppliers. B) Because of an overwhelming demand, e-procurements usually have a huge time gap between order and response. C) Many buyers now use the power of the Internet to pit suppliers against one another and search out better

Which of the following was designed to help foster trade between nations? A) tariffs B) GATT C) exchange controls D) quotas E) nontariff trade barriers Answer: B B B Tone Zone plans to introduce four mp3 player models over the next year. These models range from basic players at $99 per unit, to more sophisticated players at $399 per

The major product line decision involves product ________, the number of items in the product line. A) features B) line depth C) line conformance D) line length E) packaging Answer: D D D What sets the ceiling for product prices? A) product manufacturing costs B) sellers' perceptions of the product's value C) customer perceptions of the product's value D) variable costs E) break-even volume

Right after closing, Joshua, a senior sales manager at Halcyon Technologies called up the customer to ensure that she was satisfied with Halcyon's products. By calling the customer, Joshua also wanted to ensure repeat business. In this instance, Joshua is in the ________ stage of the selling process. A) follow-up B) handling objections C)

Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States? A) uniform-delivered pricing B) psychological pricing C) zone pricing D) FOB-origin pricing E) basing-point pricing Answer: A A A Most companies will compete with ________ rather than ________. A) distant competitors; close competitors B) close competitors; distant

Glee and The Wall Street Journal are both examples of ________-specific media within each general media type. A) alternative media B) major media C) media vehicles D) media multitaskers E) micromedia Answer: C C C Which of the following is true about business purchases? A) Business purchases involve more professional purchasing effort than consumer purchases. B) Business purchases involve fewer participants

________ are online journals where people post their thoughts, usually on a narrowly defined topic. A) Social networks B) Blogs C) Forums D) Search engines E) Web directories Answer: B B B Cybertron Inc. was accused of deceptive pricing. Which of the following explains what most likely occurred? A) Cybertron refused to advertise sale prices in the local paper. B) Cybertron

________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. A) Product marketing B) Strategic planning C) Marketing research D) Market segmentation E) Causal research Answer: C C C Which of the following is the fastest growing form of direct marketing? A) ambush marketing B) digital marketing C) direct-mail marketing D) kiosk marketing E) telemarketing

Market challengers can grow by further increasing their market shares. Answer: FALSE FALSE FALSE A group of firms in an industry following the same or a similar strategy in a given target market is known as a strategic group. Answer: FALSE FALSE FALSE In an automated warehouse, orders are fed directly from the retailer's information system to the wholesaler's,

Jason has been recently hired as a salesperson by Matrix Inc., a company selling consumer durables. He is currently working on his first sales assignment. After identifying a good prospect, Jason is now learning everything about his prospect via online sources and common acquaintances. Which of the following stages of

Installations consist of ________. A) highly priced luxury goods such as Rolex watches B) portable office equipment such as computers C) major purchases such as elevators D) portable factory equipment such as hand tools E) products such as insurance Answer: C C C Style simply describes the ________ of a product. A) quality B) appearance C) utility D) durability E) long-term benefits Answer: B B B Refer to

________ products are those products purchased for further processing or for use in conducting a business. A) Unsought B) Specialty C) Shopping D) Industrial E) Convenience Answer: D D D ________ consumers are the most affluent U.S. demographic segment and are expected to have an annual buying power approaching $1 billion by 2017. A) Hispanic American B) African American C) Asian American D)

Explain how the United States Postal Service has "competitor myopia." Answer: The U.S. Postal Service loses billions of dollars every year, but direct competitors such as FedEx and UPS aren't the problem. Instead, indirect competition from the Internet has hurtthe U.S. Postal Service's revenue, as more people e-mail and make online

In the context of behavioral segmentation, who among the following is a potential user? A) Anita, who recently had a baby B) Peter, who recently changed his job C) Mary, who enrolled as a graduate student in a university last year D) Gina, who opened a dental clinic in Orange County E) Raj, who is

Workers, managers, and members of the board are examples of ________ publics. A) general B) internal C) local D) citizen-action E) media Answer: B B B Berman Electronics, a chain of appliance stores in North America, caters to a wide range of customers. It has a marketing organization in which different operational specialists head different marketing activities. Berman Electronics

Target return pricing uses the concept of a(n) ________, which shows the total cost and total revenue expected at different sales volume levels. A) BCG matrix B) break-even chart C) SWOT analysis D) demand curve E) experience curve Answer: B B B A university enrolled 200 graduate students in the Fall of 2011. However, the enrollment rate was only

Which of the following is NOT part of the business market? A) Kruger Group sells interior security systems to resorts. B) A country club buys safety equipment for its swimming pool. C) Sue shops for her family's groceries at the local Whole Foods store. D) A firm buys laptops from Dell for company salespeople

Nintendo, producer of the Wii video game console, might define its competitors as other makers of physically interactive video games. But from a(n) ________ point of view, it would include all firms making physically interactive recreational products. A) industry B) market C) segment D) niche E) interdependent Answer: B B B In 1994, ________ established a free trade zone

PR can have a strong impact on public awareness at a much higher cost than advertising can. Answer: FALSE FALSE FALSE A product idea is an idea for a possible product that a company can offer the market. Answer: TRUE TRUE TRUE The number of products supplied indicates the length of a channel. Answer: FALSE FALSE FALSE Many companies now use customer profitability

Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________. A) channel intermediary B) line extension C) market segment D) product attribute E) brand personality Answer: C C C A room upgrade offered by a hotel to a guest who often stays in the hotel is

Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, and threats. Which of the following would be best suited for his purpose? A) SWOT analysis B) cluster analysis C) portfolio analysis D) regression analysis E) Porter's five forces analysis Answer: A A A Morrill Motors splits the United States of

Which of the following is the best way for a company to increase selling time? A) implementing high-commission plans B) reducing the number of customers C) sharing less information with customers D) simplifying administrative duties E) implementing mass customization Answer: D D D According to Michael Porter, what are three effective competitive positioning strategies? A) middle-of-the-roaders, focus, and overall cost

Horizontal conflicts are conflicts between different levels of the same channel. Answer: FALSE FALSE FALSE Shopper marketing involves focusing the entire marketing processfrom product and brand development to logistics, promotion, and merchandisingtoward turning shoppers into buyers at the point of sale. Answer: TRUE TRUE TRUE One of the traditional buyer's rights is the right not to buy a

Company growth through diversification involves offering modified or new products to the company's current markets. Answer: FALSE FALSE FALSE If Audi develops a new low-priced model for entry-level consumers in Europe, it would be an example of straight product extension. Answer: FALSE FALSE FALSE Labels range from simple tags attached to products to complex graphics that are part of

The main section of the marketing plan most likely presents a detailed ________ analysis of the current marketing situation. A) breakeven B) SBU C) SWOT D) regression E) cluster Answer: C C C Which of the following is an environmental factor that affects channel objectives and design? A) economic conditions B) factory staffing C) organizational objectives D) interpersonal influences E) individual motives Answer: A A A Which budgeting