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Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else’s product. Millennials comprise the most financially affluent group in America today. Answer: FALSE Off-price retailers pay regular wholesale prices for their merchandise but […]

Josh received an e-mail stating that he had won a lottery of $500,000 from Lottors Corporation. The e-mail asked Josh to send his bank account details and social security number to transfer cash directly to his account. Josh did not […]

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 […]

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each. Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying […]

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition. E-procurement has caused the time between order and delivery to increase significantly. Answer: FALSE A good competitor plays by its own rules […]

Stylize, Inc. opened an online store that triggered disagreements between headquarters and the firm’s exclusive dealers. This type of a disagreement is known as a(n) ________ conflict. A) vertical B) indirect C) horizontal D) selective E) multitiered Each competitor has […]

________ means marketing a product in a foreign market without making any changes to the product. A) Product adaptation B) Product invention C) Communication adaptation D) Straight product extension E) Product augmentation Orion Inc. markets luxury watches. It targets the […]

The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company. A) SWOT analysis B) benchmarking C) business portfolio analysis D) breakeven analysis E) prospecting Eric Brown is a human resource […]

In the ________ stage of the new product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. A) product design B) idea generation C) concept development […]

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________. A) niche marketing B) local marketing C) diversification D) product adaptation E) downsizing A pharmaceutical company in Utah […]

Online flash sales are used to create buying urgency and make buyers feel lucky to have gotten in on the deal. The EU acts as an umbrella organization that oversees GATT and mediates global disputes. Answer: FALSE Alternative evaluation is […]

Facebook and Second Life are both examples of ________. A) brand alliances B) opinion leaders C) social networks D) early adopters E) market mavens Communication through a telephone call is considered a part of a(n) ________ communication channel. A) online […]

Which of the following would most likely be included in the written materials prepared by PR professionals to reach and influence target markets? A) employee code of conduct B) annual reports C) memorandum of association D) advertisement jingles E) white […]

The Children’s Online Privacy Protection Act requires online operators targeting children to post privacy policies on their sites and notify parents about any information they are gathering and obtain parental consent before collecting information from children under age 13. Mass […]

A company’s channel decisions directly affect the prices of its products. Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines. Answer: TRUE Demographic segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning […]

Disintermediation occurs when radically new types of channel intermediaries displace traditional ones. Consumers welcome e-mail marketing messages; opportunities to control the messages they receive are frequently ignored. Answer: FALSE In a direct marketing channel, the producer sells directly to the […]

In the marketing mix, design, packaging, services, and variety can be categorized under ________. A) product B) price C) promotion D) place E) position One of the functions performed by a PR department is ________, which involves building and maintaining […]

Which of the following uses a customer-centered ‘sense-and-respond” philosophy rather than a product-centered “make-and-sell” philosophy? A) market segmentation B) the production concept C) the marketing concept D) the inside-out perspective E) marketing myopia When companies set prices, the government and […]

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. A seasonal discount is a price reduction to buyers who buy merchandise while the products are in season. Answer: […]

________ refers to gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. A) Experimental research B) Constructive research C) Observational research D) Survey research E) Descriptive […]

Demographic characteristics, geographic characteristics, economic factors, sociocultural factors, and political and legal factors all help a company ________. A) determine a market’s potential B) determine a country’s degree of globalization C) evaluate its marketing objectives D) evaluate its value delivery […]

Refer to the scenario below to answer the following question(s). Kimberly’s Crown sells and designs jewelry. Despite the jewelry’s popularity, products are available only through a few shopping stores across the country. What mode of transport should Kimberly use to […]

Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use. A) club marketing programs B) social marketing campaigns C) consumer-generated marketing campaigns D) ambush marketing campaigns E) frequency marketing programs Which of the following […]

Postpurchase behavior is the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction. If demand changes greatly with price, the demand is inelastic. Answer: FALSE The business marketer normally […]

At the most basic level of environmental sustainability, a company can practice ________. A) pollution prevention B) product stewardship C) beyond greening activities D) new clean technology E) sustainability vision Which of the following is the first step in the […]

Children exert little influence on family buying decisions. A community shopping center contains between 15 and 50 retail stores. Answer: TRUE Only citizens are part of the consumerism movement. Answer: FALSE Personality is a person’s pattern of living as expressed […]

In the customer sales force structure, each salesperson is assigned to an exclusive geographic area and sells the company’s full line of products or services to all customers in that territory. A service refers to an activity, benefit, or satisfaction […]

________ occurs when two established brand names of different companies are used on the same product. A) Market diversification B) Niche marketing C) Co-branding D) Licensing E) Cannibalization Marketing stimuli consist of the four Ps. Which of the following is […]

Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services. You receive a text message on your phone from Upscale Furnishings about an upcoming sale on custom furniture. Upscale […]

In some markets, competitors live in relative harmony. Intermodal transportation refers to the combination of two or more modes of transportation. Answer: TRUE Companies seldom solicit ideas from customers during the idea generation stage of product development. Answer: FALSE Good […]

Which of the following is a price adjustment strategy that considers how a customer’s perception of a product is influenced by its price? A) captive product pricing B) psychological pricing C) by-product pricing D) promotional pricing E) international pricing The […]

Which of the following is true about the demand curve? A) A demand curve indicates the drop in the average per-unit production cost that comes with accumulated production experience. B) A demand curve indicates the cost per unit of output […]

Marketing logistics involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit. Internal information is almost always sufficient for making marketing […]

Which of the following statements is most likely true regarding the objective-and-task method of budget setting? A) It forces management to spell out its assumptions about the relationship between the money spent and promotion results. B) It is the simplest […]

A company’s product mix has four important dimensions: width, length, depth, and consistency. Companies are increasingly adopting high-commission plans to make sure that salespersons are motivated to build long-term relationships with customers. Answer: FALSE A company that makes marketing decisions […]

Companies in several industries have recognized the buying power of the LGBT segment of the U.S. population and have begun explicitly targeting these consumers with gay-specific ads and marketing efforts. Operating control involves checking ongoing performance against the annual plan […]

To increase its ‘share of customer,” a firm concentrates on retaining as many customers as possible over its lifetime. Value-based pricing uses the sellers’ perception of value as the key to pricing. Answer: FALSE In the general needs description of […]

Which of the following questions would help a marketer evaluate the return on a sales promotion investment? A) Was the sales force successful in filtering out the good prospects from the poor ones? B) Did customers enjoy the events associated […]

Large-scale advertising conveys a positive message about the seller’s size, popularity, and success. A management information system assesses information needs, develops needed information, and helps decision makers use the information. Answer: TRUE In an automated warehouse, orders are fed directly […]

An increasing number of American workers currently work from their homes or remote offices and conduct their business by phone or the Internet. This trend has created a ________. A) booming real estate market in the big cities B) booming […]

Which of the following companies has a product-oriented business definition? A) A luxury hotel, whose business definition is: “We sell out-of-the-world experiences to our guests.” B) A real estate company, whose business definition is: “We sell dreams.” C) A cosmetic […]

Which of the following is an advantage of using digital catalogs? A) lists the phone numbers of interested prospects B) coordinates with direct-response television ads C) points customers to the nearest kiosk D) eliminates printing and mailing costs E) creates […]

Joanna uses her smartphone to accomplish many tasks everyday. She is also an avid shopper. Which online marketing tool will benefit Joanna the most to help her shop? A) e-mail messages from sites to which she subscribes B) banking app […]

What is included in the first part of a marketing strategy statement? A) distribution strategy B) product longevity C) long-run sales goals D) promotional mixes E) target market description New technologies most likely lead to ________. A) economic imbalance in […]

When Gary Hirshberg started the Stonyfield Farm yogurt company, he stated that his company could do better with less advertising, less marketing research, and more guerrilla marketing. He came up with innovative marketing ideas to promote his products such as […]

Which of the following is true of using trucks as a transportation mode? A) Transportation via trucks is costlier than by rail or air. B) Trucks are a specialized means of shipping petroleum, natural gas, and chemicals from sources to […]

What sets the floor for product prices? A) consumer perceptions of the product’s value B) product costs C) competitors’ strategies D) advertising budgets E) market competition Workers, managers, and members of the board are examples of ________ publics. A) general […]

Attributes are the most desirable level for brand positioning because competitors can easily copy attributes. The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company. Answer: TRUE Shopper […]

Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? A) All customers will be delighted. B) Customer-perceived value will increase. C) All customers will directly turn into customer evangelists. […]

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing? A) when the new product requires a major investment B) when management lacks confidence in the new product C) […]

Which of the following advertising slogans most likely represents a two-sided argument? A) Breakfast of champions B) Good to the last drop C) A diamond is forever D) The ultimate driving machine E) The next big thing is already here […]

Which of the following is an example of cultural pollution? A) gasoline shortages B) congestion tolls C) street signs in cities D) overpasses in suburban areas E) billboards marring beautiful scenery A quantity discount is a price reduction for buyers […]

Mission statements should be ________. A) meaningful and specific yet motivating B) technology oriented C) written solely for public relations purposes D) focused on increasing sales or profits E) strictly product oriented Which of the following is a disadvantage of […]

UNASUR is the economic community of South American nations. The benefits of e-procurement include access to new suppliers, lower purchasing costs, and more time-efficient order processing and delivery. Answer: TRUE Prices have a direct impact on a firm’s bottom line. […]

Information in a company’s database can come from many sources. An advantage of harnessing such information is to ________. A) eliminate employee turnover B) achieve a high degree of employee empowerment C) gain competitive advantage D) gain access to mass […]

________ are a type of limited-service wholesaler who carries a limited line of semiperishable merchandise (such as milk, bread, and snack foods), which is sold for cash as deliveries are made to supermarkets, small groceries, or hotels. A) Industrial distributors […]

Good service recovery can turn angry customers into loyal ones. Competitive marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace. Answer: TRUE A marketing Web site interacts with consumers […]

According to Maslow’s hierarchy of needs theory, when the most important need is satisfied, it will cease to be a motivator, and the person will then try to satisfy the next most important need. A company cannot stretch its product […]

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor’s price […]

Mark has long supported a particular brand of footwear and has always bought that brand. Recently, the footwear manufacturer was embroiled in a controversy for using child labor at its manufacturing plants. Mark doubts the news reports and continues to […]

The market subsegment that a company exclusively caters to may dry up, or it might grow to the point that it attracts larger competitors. This is why such companies practice ________. A) multiple niching B) mass marketing C) overall cost […]

A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. A) product line B) product delivery network C) marketing channel D) consumer base E) […]

New World Food Supplements continuously seeks real product and marketing improvements for its line of vitamin and protein supplements. This information indicates that New World is involved in consumer-oriented marketing. Although television advertising has high absolute costs, its cost per […]

Advertising involves a personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. The percentage-of-sales budget is based on the availability of funds rather than on opportunities. Answer: TRUE Abel is considering whether […]

For most marketers, customer relationship management is exclusively a matter of customer data management. Marketing researchers can conduct their own searches of secondary data sources by using mail questionnaires and interviewing individuals. Answer: FALSE Blair Housewares wants to add new […]

Sparks Inc. has a growing ________ market in the U.S. consisting of individuals and households that buy Sparks’ products for personal use. A) consumer B) government C) business D) international E) financial Elmo Inc., a global conglomerate, designed the ElBrush, […]

________ marketing is more suited for products that vary in design. A) Mass B) Local C) Direct D) Differentiated E) Individual A gym equipment manufacturer encourages customers to become members of the firm’s Web site. Membership provides customers with exercise […]

Which question should most likely be answered by all companies due to the rapid move toward globalization? A) How should we eliminate domestic competition? B) Should we diversify in a new business area in the home country? C) Where should […]

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy. A) market-skimming B) cost-plus C) market-segmentation D) market-penetration E) competitive Rhodia invites […]

Within a hotel renowned for its superior service, one registration-desk employee may be cheerful and efficient, whereas another may be irritable and slow. This exemplifies service consistency. The societal marketing concept calls on marketers to balance consumer wants and desires, […]

Which of the following groups influences the company’s ability to obtain funds? A) financial publics B) local publics C) general publics D) citizen-action publics E) internal publics ________ refers to the unique psychological characteristics that distinguish an individual or group. […]

Although more price-conscious than other population segments, ________ consumers tend to be strongly motivated by quality and selection, and give importance to brands. A) lower upper B) African American C) Asian American D) Filipino E) working class Which of the […]

The marketing mix refers to the set of marketing tools the firm uses to implement its marketing strategy. Using value-based pricing, a marketer would not design a product and marketing program before setting the price. Answer: TRUE Green retailing yields […]

Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a particular brand of soft drink? A) internal research B) descriptive research C) causal research D) exploratory research E) demographic research […]

Formed in 2004 and formalized in 2008, ________ makes up the largest trading block after NAFTA and the European Union. A) CAFTA-DR B) FTAA C) UNASUR D) MCAN E) GATT In ________ research, the objective is to gather preliminary information […]

Ralph Goldsmith works for Zenith Inc., a leading cosmetic company based in Illinois. At Zenith, Ralph’s primary responsibility revolves around digging deeply into customer data to gain valuable insights about customer needs, motives, and attitudes. This data is, in turn, […]

Commercial sources of information typically legitimize and evaluate products for buyers. The direct mail medium has very low cost per exposure. Answer: FALSE The introduction of new technologies is equally beneficial to all industries. Answer: FALSE Professional athletes such as […]

________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items. A) Category killers B) Factory outlets C) Specialty stores D) Superstores E) Power […]

Marketers must increasingly consider the special needs of traditional households because this segment of the population is growing more rapidly than nontraditional households. In the follow-up stage of the selling process, the salesperson asks the customer for an order. Answer: […]

A hybrid sales rep ________. A) works exclusively from remote locations B) is a modern cross between a field sales rep and an inside rep C) rarely engages in face-to-face interactions with customers D) performs sales audits E) sets the […]

Which of the following marketing strategies is most suitable for smaller firms with limited resources? A) mass marketing B) undifferentiated marketing C) niche marketing D) differentiated marketing E) one-to-one marketing Almost all major purchases result in ________, or discomfort caused […]

The simplest way to enter a foreign market is through direct investment. The American marketing system never has been accused of poorly serving disadvantaged consumers. Answer: FALSE Corporate identity materials help create a corporate identity that the public immediately recognizes. […]

Which of the following is NOT a reason that companies use social media? A) cost effectiveness B) engagement and social sharing capabilities C) ease of creating content D) immediacy and timeliness E) interactiveness In recent years, service differentiation among retailers […]

Waldo Stores will reward an all-expense-paid trip to Hawaii to anyone who correctly guesses the date on which Waldo Stores was first established in the Boston area. Which type of sales promotion is evident here? A) contest B) sample C) […]

At the beginning of each year, the management of Dee Decor states the exact amount a salesperson should sell. This specific sales target is also known as a ________. A) sales lead B) prospect C) bill of sale D) channel […]

Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about ________. A) alternative evaluation B) subliminal advertising C) selective retention D) cognitive dissonance E) selective communication Which of the following is […]

Branded community Web sites are designed to present brand content that engages consumers and builds closer customer relationships rather than to sell the company’s products directly. Buzz marketing involves cultivating opinion leaders and getting them to spread information about a […]

Some firms define their purpose in narrow product terms. Others that define their purpose in broad social terms follow ________. A) societal marketing B) sense-of-mission marketing C) consumer-oriented marketing D) customer-value marketing E) consumerism A(n) ________ consists of one or […]

Firms that practice product differentiation gain competitive advantage through the way they design their channel’s coverage, expertise, and performance. Most companies use direct marketing as a supplementary channel or medium. Answer: TRUE As baby boomers reach their peak earning and […]

An integrated social marketing campaign likely could include all of the following except ________. A) Facebook pages B) Twitter postings C) Instagram photos D) iTunes podcasts E) YouTube videos Refer to the scenario below to answer the following question. Carol […]

List two benefits of using secondary data. A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer’s unit cost be in order to break […]

In ________, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!, and Bing. A) content sponsorships B) digital billboards C) digital catalogs D) contextual advertisements E) RSS feeds Brands in a market with many […]

A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their […]

Company growth through diversification involves offering modified or new products to the company’s current markets. Individual marketing is also known as one-to-one marketing, mass customization, and markets-of-one marketing. Answer: TRUE Concept testing works best with people who are familiar with […]

Which of the following message execution styles focuses on the company’s skill and knowledge in making the product? A) endorsement B) scientific evidence C) slice of life D) technical expertise E) testimonial evidence A marketing research company asked members of […]

The difference between human needs and wants is that needs are not created by marketers. In the territorial sales force structure, each salesperson is responsible for selling a single, exclusive product across different geographical regions. Answer: FALSE Derived demand refers […]

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences? A) concept testing process B) customer value proposition C) customer-centered new product development D) customer lifetime value E) team-based new product development […]