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Cash cows are market leaders that grow rapidly with substantial reported profits. a. True b. False buy products from manufacturers and then resell the products to other firms in the distribution system. a. Retailers b. Producers c. Distributors d. Warehouses […]

Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n): a. […]

The most basic principles of marketing ethics are: a. philanthropic responsibilities. b. economic responsibilities. c. not determined by stakeholders. d. written as laws and regulations. e. determined only by stakeholders. Someone who generates his or her own media outlets, such […]

Sony’s design of its new large-screen television set with smoked-glass control panel cover and other visual changes would be classified as a(n)____________modification; changes to make the TV’s remote easier to use would be classified as a(n)____________modification. a. functional; aesthetic b. […]

Cole’s smartphone is two years old and he would like to have a new one. He is not a gadget freak. However, this time he wants to make sure that the phone he buys has a longer battery charge and […]

Which of the following is an advantage of using an industrial distributor? a. These firms are easy to control because they work directly for the producers. b. Inventory holding costs are minimized because they can store inventory very cheaply. c. […]

Scenario 10.3 Use the following to answer the questions. The Pillsbury division of General Mills has promoted its baking products through its trade character, the Pillsbury Doughboy, since 1965. He appears in television commercials touting the quality, benefits, and features […]

If Italy limits the number of coach bags that can be imported during a period of one-year, since coach bags are made in New York, USA. This would be an example of a(n)____ . a. exchange control limit b. embargo […]

Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This […]

Marketers may try to change consumers’ attitudes toward a product if they feel that a significant number of consumers have strong negative attitudes toward it. a. True b. False The goals of any organization should derive from its: a. mission […]

Customers will more easily recognize a new product as belonging to a particular product category if the marketers use _____. a. family branding b. innovative packaging c. category-consistent packaging d. category labeling e. product category packaging Marketing ethics refers to […]

During the stage of the product life cycle, weaker competitors are squeezed out of the market. a. maturity b. growth c. introduction d. market reduction e. decline In relation to international marketing, which of the following best describes direct ownership? […]

The selling of merchandise outside the confines of actual retail facilities is generally called_________. a. nonstore retailing b. loyalty marketing c. persuasive selling d. flash retailing e. store-front sales. An attempt to create a trend or acceptance of a product […]

For an exchange to occur, at least one of the parties must be willing to give up his or her ‘something of value.” a. True b. False A measure of the sensitivity of demand in relation to changes in price […]

One of Cole’s responsibilities as a marketing manager for a motorcycle parts manufacturer is to maintain market share. Cole believes that the company’s products are most likely in the maturity stage of the product life cycle. In order to maintain […]

Rick is a sales representative for Lucent Technologies. He has reviewed a prospect’s account and credit history, identified product needs, and gathered the appropriate literature he needs. Rick feels he is ready for the _____ step of the personal selling […]

What does the demand curve for a prestige product look like? a. It is a straight line where the quantity sold continues to increase as the price of each product increases. b. It is a curve where the highest and […]

When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a: a. merchandise allowance. b. count-and-recount allowance. c. buy-back allowance. d. scan-back allowance. e. scan-count allowance. Brand recognition […]

Brian is responsible for the promotions and public relations of his firm, which produces rubber tires. A recent development in technology may change the way in which the rubber for tires is produced, allowing it to be sourced from the […]

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are known as______________. a. commission merchants b. manufacturers’ agents c. selling agents d. truck wholesalers e. retailers’ brokers Jake is a […]

Markup is measured either as a percentage of______or a percentage of________. a. selling price; cost b. cost; profit c. revenue; contribution margin d. resources used; cost e. demand; competition A marketer’s advertising platform should consist of issues that are important […]

David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the ‘special” bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) product. […]

Evan has just shifted to a new apartment in the suburbs. Currently, he is making purchases for his new apartment. His purchase of would most likely be done through extended decision making behavior. a. a new suit b. bed sheets […]

If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are: a. long-term commitments. b. short-term commitments. c. easier to change than prices. d. easier to change than promotion. e. impossible to change. […]

Companies use photosharing sites in order to add a personal touch to their businesses. a. True b. False Marketers of computer software, music CDs, and books are particularly affected by cultural differences in: a. socioeconomic status of citizens. b. advances […]

Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys? a. Total population surveys b. In-home (door-to-door) interviews c. Focus-group interviews d. Personal interview surveys e. Online […]

Retailers purchase products and resell them to final consumers. a. True b. False StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about: a. target market […]

Suppose that a retail store conducts a mail survey of its customers and finds that 50 percent of the customers believe store personnel are “courteous.” Which benchmark or comparison would be most useful for interpreting this result? a. The annual […]

Westin Hotels, Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a pricing objective. a. market share b. cash flow c. return on investment d. profit e. status quo In […]

The U.S. and Japanese economies are more integrated than are the U.S. and Canadian economies. a. True b. False An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of […]

Connectivity refers to a customer’s ability to regulate the information that is viewed. a. True b. False Demand for a business product is when two or more items are used in combination to produce a product. a. inelastic b. joint […]

In industries in which price changes occur frequently, demand fluctuations have practically been eliminated since buyers have become used to these changes and have learned to ignore them. a. True b. False An organization’s promotion mix is viewed as an […]

Perry Supply & Co. experiences an increase in its sales, and accordingly, its sales force has continued to expand. Now, the firm plans to add a fleet of company vans as part of its sales expansion. For Perry Supply & […]

The use of a pull policy may require heavy expenditures for: a. advertising and sales promotion. b. public relations and distribution. c. personal selling and public relations. d. distribution and advertising. e. sales promotion and personal selling. If Silk Soyamilk […]

When Cadillac buys headlights from Delco, both of which are divisions of General Motors,_________pricing occurs. a. base-point b. zone c. transfer d. geographic e. matrix The absolute dollar outlay for advertising is usually low. a. True b. False Answer: False […]

One way that Reiko Inc., a Japanese manufacturer of automobiles and motorcycles, evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Reiko is: a. […]

Identifying an unserved or underserved market segment and serving it through a strategy that distinguishes a retailer in the mind of a consumer is called_____. a. the marketing concept b. the wheel of retailing c. retail positioning d. targeted retailing […]

Signs, counter pieces, racks, and self-service cartons are all forms of: a. rebates. b. demonstrations. c. retail media. d. premiums. e. point-of-purchase displays. The old Standard Industrial Classification system is more comprehensive than NAICS. a. True b. False Answer: False […]

A family that organizes and advertises a garage sale is performing marketing activities. a. True b. False French Quarter Inns reduces the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of […]

Scenario 5.1 Use the following to answer the questions. Lil’ Angels Kids Spa offers various treatments designed to appeal to the younger customers. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a […]

A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of: a. lower costs of selling. b. easier financial transactions. c. a superior ability to demonstrate the product. […]

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to: a. attempt to make large payments or bribes to influence policy decisions of foreign governments. b. offer foreign businesses any type of incentive for purchasing their […]

49. If Georgia-Pacific, a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) strategy. If it sold the same products to both construction companies and DIY […]

is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders. a. Advertising b. Trade relations c. A press strategy d. Public relations e. Publicity Individuals and business organizations that buy […]

The primary function of most wholesalers is to: a. reduce a retailer’s warehousing expenses. b. support manufacturers by assisting with marketing strategy, especially the distribution component. c. provide information system tracking of inventory for the ultimate consumer. d. perform physical […]

When a soft drink manufacturing company takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, it is engaged in environmental: a. scanning. b. marketing. c. management. d. manipulation. e. […]

Barnes and Noble Corp. sells online through its website, while also selling through physical store locations. This type of retailing is referred to as: a. bricks-and-clicks. b. side-by-side. c. bricks-and-mortar. d. online-specialty. e. web-only. A wholesaler that carries a wide […]

Scenario 8.2 Use the following to answer the questions. KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories […]

If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City? a. Government vehicle […]

When working as a summer intern for a local retail store, Jane Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered . […]

If during an advertising campaign a certain portion of advertising runs continuously, and then during specific periods additional advertising is used to intensify the level of communication, a(n) media schedule is being used. a. beating b. alternating c. flighting d. […]

The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop and maintain a single marketing mix. a. True b. False Sales are most likely to have a direct relationship to product availability for […]

The term “cultural branding” describes how a brand conveys a powerful myth that consumers find useful in cementing their identities. a. True b. False Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from […]

Scenario 11.2 Use the scenario to answer the questions. Jonathan Moore, President of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and observes that there are certain areas in which the company needs to improve. […]

A research method in which a number of people are exposed to an idea or concept and the interaction of the people is observed is called a(n) . a. in-home interview b. mail-group survey c. focus group interview d. shopping […]

In a brand licensing arrangement, the licensee is responsible for . a. providing the brand name to another organization for use in promoting products b. collecting the royalties from sales of the licensed products c. half of the financial losses […]

82. Initiatives intended to improve an organization’s positive impact on society and the natural environment are called: a. environmental marketing. b. green marketing. c. socially-responsible marketing. d. energy-conscious marketing. e. socially-conscious marketing. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING […]

108. The distribution variable in a marketing mix is directed toward making products available in the quantities desired to as many target market customers as possible and keeping the total inventory, transportation, and storage costs as low as possible. a. […]

1. List four marketing mix variables and describe each one of them. ANSWER: Marketers consider activities such as product, pricing, distribution, and promotions as the marketing mix because they decide what type of each element to use and in what […]

42. When Ikea Inc. showcases rooms of furniture on its website, it lists each item in the room. However, if customers like all of the items, they can purchase them as a bundle. Which of the following aspects of the […]

36. A group of individuals or organizations that have needs for products in a product class and have the willingness, ability, and authority to purchase those products is called a(n): a. strategic window. b. industry. c. strategic business unit. d. […]

Scenario 2.1 Use the following to answer the questions. Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on […]

1. Describe the process of strategic planning. How does this process help marketing managers? ANSWER: Through the process of strategic planning, a company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy. A […]

42. The four major competitive structures are: a. monopolies, oligopolies, oligopolistic monopolies, and pure competition. b. pure competition, heavy competition, moderate competition, and light competition. c. brand, product, total budget, and generic. d. oligopolies, monopolies, monopolistic competition, and pure competition. […]

161. According to the consumer bill of rights, the idea that consumers’ interests should receive full and sympathetic consideration in the formulation of government policy is known as the right to: a. be heard. b. choose. c. be informed. d. […]

1. Given a new brand of barbecue sauce for which to develop a marketing strategy, describe the process of conducting environmental scanning and analysis for this brand. ANSWER: Environmental scanning can be done by collecting information about the existing brands […]

121. Which of the following statements about social responsibility is true? a. Social responsibility dimensions do not include philanthropic concerns. b. Social responsibility does not deal with the total effect of all marketing decisions on society. c. Social responsibility refers […]

240. To achieve their objectives, consumer advocates write letters to companies, lobby government agencies, broadcast public service announcements, and boycott companies whose actions they deem irresponsible. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.03.02 […]

82. The Children’s Online Privacy Protection Act prohibits websites and Internet providers from: a. selling products to children under the age of 18. b. seeking personal information from children under the age of 13. c. selling products to children under […]

204. The strength of one’s buying power depends partially on the state of the economy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.03.01 NATIONAL STANDARDS: United States – BUSPROG: Analytic CORPORATE STANDARDS: DISC: Marketing […]

1. Compare reliability and validity. Why are they important considerations in marketing research? ANSWER: In designing research, marketing researchers must ensure that research techniques are both reliable and valid. A research technique has reliability if it produces almost identical results […]

77. An offshoot of mail surveys, ____ have shortcomings because the people who participate in them generally have higher incomes and education levels than the general population. a. purchase diaries b. telephone surveys c. online surveys d. focus-group interviews e. […]

37. Designing research procedures that produce reliable marketing data means that _____. a. others using the same procedure will get almost identical data b. the procedure must give results that support the hypothesis c. the procedure must not give results […]

146. The technique of sampling in marketing research is the process of selecting representative units from a total population (a sample) and being able to project the characteristics of the total population from the sample considered. a. True b. False […]

117. Max is the product manager for a new type of lumbar supports used in the production of office chairs. His company sells the lumbar supports to approximately 70 different chair manufacturers. The price for this new product still needs […]

151. A company sometimes defines a total market as its target market. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.05.03 NATIONAL STANDARDS: United States – BUSPROG: Analytic CORPORATE STANDARDS: DISC: International Perspective TOPICS: A-Head: […]

115. Guess Inc. will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company’s: a. sales potential. b. market potential. c. sales forecast. d. market […]

1. How do business markets differ from consumer markets? ANSWER: Markets fall into one of two categories: consumer markets and business markets. These categories are based on the characteristics of the individuals and groups that make up a specific market […]

35. If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the _____ strategy. a. directed b. undifferentiated c. segmented d. differentiated e. product-use ANSWER: b POINTS: […]

75. Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model? a. Gender and age b. Geographic location and family life cycle c. […]

41. Claire will be traveling to London next month for an official conference. Therefore, she has decided to retire the old college luggage for a more professional-looking version and has begun to evaluate various brands. Claire is most likely facing […]

156. Patronage motives influence where one purchases products on a regular basis. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.06.04 NATIONAL STANDARDS: United States – BUSPROG: Analytic CORPORATE STANDARDS: DISC: Customer TOPICS: A-Head: Psychological […]

81. People’s needs to grow, develop, and achieve their full potential are referred to by Maslow as _____ needs. a. self-realization b. esteem c. self-actualization d. social e. safety ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.06.04 NATIONAL […]

123. Some of the criteria used in the evaluation of alternatives stage of the consumer buying decision process are also used during the postpurchase evaluation stage. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.06.01 […]

1. What can marketers do to reduce cognitive dissonance in a consumer who has just purchased an expensive product? ANSWER: Cognitivedissonanceisthedoubtsinthebuyer’smindaboutwhetherpurchasing the product was the right decision. Marketers sometimes attempt to reduce cognitive dissonance by having salespeople call or e-mail […]

81. An organization that decides to buy all parts of an item from the same company is using: a. single-supplier purchasing. b. multiple sourcing. c. same vendor analyzing. d. straight rebuying. e. sole sourcing. ANSWER: e POINTS: 1 DIFFICULTY: Difficulty: […]

107. Business purchasing agents may indirectly contribute to the satisfaction of their own personal needs by helping their firms achieve organizational objectives. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.07.02 NATIONAL STANDARDS: United States […]

41. Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _____ in order to achieve their quality goals. a. how many different suppliers they use b. the number […]

1. What are the four major types of business markets? Define each type. ANSWER: The four categories of business markets are producer, reseller, government, and institutional markets. Individuals and business organizations that purchase products for the purpose of making a […]

32. Which of the following is true about reaching global markets? a. Under the Foreign Corrupt Practices Act of 1977, it is legal for U.S. firms to attempt to make bribes to influence policy decisions of foreign governments. b. A […]

Scenario 8.1 Use the following to answer the questions. Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of the four sites. With a large number of its bikes sold in markets all around the world, it […]

1. Describe the cultural and social forces that affect international marketing strategy. ANSWER: Cultural and social differences among nations can have significant effects on marketing activities. Because marketing activities are primarily social in purpose, they are influenced by beliefs and […]

72. What level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable? a. Joint ventures b. Direct ownership c. Exporting d. Limited exporting e. Licensing ANSWER: e POINTS: […]

80. Digital marketing uses all digital media to develop communication and exchanges with customers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.09.01 NATIONAL STANDARDS: United States – BUSPROG: Analytic CORPORATE STANDARDS: DISC: International Perspective […]

41. _____are user-created, three-dimensional worlds that have their own economies and currencies, lands, and residents who come in every shape and size. a. Wikis b. Virtual realities c. Podcasts d. Blogs e. Photo-sharing ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy […]

1. Describe the opportunities that have evolved in marketing due to the use of digital media. ANSWER: Digitalmediaareelectronicmediathatfunctionusingdigitalcodes—whenwerefer to digital media, we are referring to media available via computers, mobile devices, and other digital devices that have been released in […]

65. A company markets such diverse products as Rosita Mexican foods, Swizz Max cosmetics, and Blueberry bags. These various offerings exhibit this firm’s product mix _____. a. width b. depth c. length d. volume e. dimension ANSWER: a POINTS: 1 […]

184. A product need not be a physical product. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.10.01 NATIONAL STANDARDS: United States – BUSPROG: Analytic CORPORATE STANDARDS: DISC: Product TOPICS: A-Head: What Is a Product? […]

232. Every aspect of a brand is subject to a marketer’s control. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.10.06 NATIONAL STANDARDS: United States – BUSPROG: Analytic CORPORATE STANDARDS: DISC: International Perspective TOPICS: A-Head: […]

25. To make intangible products more tangible or real to the consumer, marketers often _____. a. use low prices on intangible goods b. use symbols or cues to help symbolize product benefits c. use external reference prices d. use multiple […]

1. What is a product? ANSWER: A product is a good, a service, or an idea received in an exchange. It can be either tangible or intangible and includes functional, social, and psychological utilities or benefits. It also includes supporting […]

104. The part of a brand that can be spoken including letters, numbers, and words is known as the _____. a. brand b. brand mark c. brand name d. trade name e. trademark ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy […]

144. _____ is the use of two or more brands on one product. a. Brand extension b. Brand licensing c. Family branding d. Co-branding e. Cohort branding ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.10.06 NATIONAL STANDARDS: United […]

39. Outback Steakhouse, a restaurant chain, wants to expand its range of dishes on its menu. The restaurant managers conduct surveys on customers to determine the dishes that would appeal to the customers. Outback is currently in the _____ phase […]

119. When a movie theater entices customers to view movies during the daytime by offering tickets at a reduced price, it is trying to resolve the services marketing challenge of: a. inseparability. b. intangibility. c. customer contact. d. off-peak demand. […]

1. Compare and contrast a line extension and a product modification. ANSWER: A line extension is the development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different […]

159. The sum of a product’s physical characteristics is called product quality. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.11.03 NATIONAL STANDARDS: United States – BUSPROG: Analytic TOPICS: A-Head: Product Differentiation through Quality, Design, […]

79. Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth noticedafaultwithoneofthetablepockets.Sinceitwasaweekend,hedidn’texpectthatitcouldberepaired immediately. However, when he called a Brunswick store to leave a message, the call was answered by a repair representativewhoassuredSeththathewouldcomeovertoSeth’shousefortherepairservicewithinanhour. […]

1. Describe the eight stages of the process that marketers can use to establish prices. ANSWER: Beforeaproduct’spricecanbeset,anorganizationmustdeterminethebasison whichitwillcompete—whetheronpricealoneorsomecombinationoffactors. There are eight stages that marketers can follow to establish prices. Stage 1 is developingapricingobjectivethatiscompatiblewiththeorganization’soverall marketingobjectives.Stage2entailsassessingthetargetmarket’sevaluationof price.InStage3,marketersshouldexamineaproduct’sdemandandtheprice elasticity of demand. Stage 4 […]

117. Breyer’s produces a variety of ice cream flavors and of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Breyer’s is using ____ to price its ice cream. a. captive pricing b. price […]

156. Refer to Scenario 12.4. If BASF were to employ pricing that includes the price at the factory plus freight charges from a chosen point nearest the buyer, this would be an example of ____ pricing. a. factory plus b. […]

37. A market share objective: a. is not recommended when sales for the total industry are declining. b. is not especially useful when sales for the total industry are increasing. c. is not especially useful when sales for the total […]

194. Marketers are usually in a better position to establish prices when they know the prices charged for competing brands. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.12.05 NATIONAL STANDARDS: United States – BUSPROG: […]

77. A certain location of O’Charley’s Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O’Charley’s serve per year […]

1. What is supply chain management? List the activities involved in it. ANSWER: Supply-chain management is the set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produced […]

143. Refer to Scenario 13.1. The Liz & Co brand is sold only at J.C. Penney. This is an example of _____ distribution. a. selective b. routine c. horizontal d. intensive e. exclusive ANSWER: e POINTS: 1 DIFFICULTY: Difficulty: Moderate […]

121. A public warehouse is a: a. business that leases storage space and related facilities for distribution to other firms. b. large, centralized warehouse that focuses on moving rather than storing goods. c. company that provides a complete array of […]

41. Which of the following is an advantage of using an industrial distributor? a. These firms are easy to control because they work directly for the producers. b. Inventory holding costs are minimized because they can store inventory very cheaply. […]

81. When Coach, the producer of fine leather handbags and accessories, decided to open its own specialty shops to sell its merchandise, and its own retail outlet stores, the firm was engaging in: a. multiple channel repetition. b. vertical channel […]

147. A general-line wholesaler would be expected to carry a _____ product mix. a. wide and deep b. wide and shallow c. narrow and shallow d. wide e. narrow and deep ANSWER: e POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: […]

107. A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of: a. lower costs of selling. b. easier financial transactions. c. a superior ability to demonstrate the […]

27. A general merchandise retailer offers: a. a single product line that is stocked in depth. b. few product lines with deep assortments of these lines. c. few choices of a large variety of product lines. d. products through the […]

1. In what ways do retailers add value to products? ANSWER: Retailers add value for customers by providing services and assisting in making productselections.Theycanalsoenhanceconsumers’perceptionofthevalueof productsbymakingbuyers’shoppingexperienceseasierormoreconvenient,such as providing free delivery or offering an online shopping option. Retailers can facilitate comparison shopping […]

67. The kinds of products being sold and the availability of public transportation are both factors that influence a retailer’s decision about _____. a. store atmosphere b. store location c. retail positioning d. store image e. the wheel of retailing […]

175. The primary purpose of a(n) _____ is to bring buyers and sellers together. a. commission merchant b. selling agent c. manufacturers’ agent d. intermediary e. broker ANSWER: e POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.14.06 NATIONAL STANDARDS: United […]

116. Firms that link the purchase of their product to philanthropic efforts practice cause-related marketing. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.15.03 NATIONAL STANDARDS: United States – BUSPROG: Analytic CORPORATE STANDARDS: DISC: Promotion […]

79. Generally, promotion mixes for companies with extremely limited promotional budgets tend to concentrate on: a. national advertising. b. publicity. c. sales promotions. d. personal selling. e. distributor incentives. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.15.05 NATIONAL […]

1. What is integrated marketing communications? Explain its purpose. ANSWER: Integrated marketing communications refer to the coordination of promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers. Coordinating multiple marketing tools to produce this synergistic […]

39. Often when a company introduces a new product or line extension, its promotion will focus on _____ in order to initiate the product-adoption process. a. creating awareness b. stimulating demand c. retaining loyal customers d. combating competitive promotional efforts […]

1. Describe the major types of advertising. Discuss the differences among them. ANSWER: Advertising can be classified as institutional or product advertising. Institutional advertising promotes organizational images, ideas, and political issues. It can be used to create or maintain an […]

70. Dominos is looking into magazine advertising for its pizza. The company wants to reach as many people as possible, but due to budget constraints Dominos must reach consumers as efficiently as possible. What can Domino’s use to evaluate various […]

145. Institutional advertising and promotional advertising are the two basic categories of advertising. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.16.01 NATIONAL STANDARDS: United States – BUSPROG: Analytic CORPORATE STANDARDS: DISC: Strategy TOPICS: A-Head: […]

30. An advertisement for a multivitamin that claims, “We still bring you everything you need to get through your day in one pill,” would most likely be considered as _____ advertising. a. reinforcement b. advocacy c. comparative d. reminder e. […]

110. _____ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other highly skilled specialists. a. Public relation firms b. Media companies c. Advertising agencies d. Production companies e. Promotion experts ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy […]

36. Stacey’s client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey’s method of approach is known as: a. […]

116. A dealer loader is: a. additional compensation to salespeople from the manufacturer to promote a line of goods. b. an agreement in which a producer offers free merchandise to a retailer. c. an advertisement that promotes a product and […]

143. Locating prospects, educating customers, and building goodwill are functions performed by support personnel. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: FOM.PRID.15.17.03 NATIONAL STANDARDS: United States – BUSPROG: Analytic CORPORATE STANDARDS: DISC: International Perspective […]

76. Olivia is the manager of Human Resources for Zappos.com. She is currently reviewing the sales force compensation method used at Zappos.com to determine if there is a better way to manage compensation. Olivia knows that the _____ method is […]

1. Identify and discuss the general steps in the personal selling process. ANSWER: Personal selling process consists of seven steps: prospecting, preapproach, approach, making the presentation, overcoming objections, closing the sale, and following up. Prospecting: Developing a database of potential […]

The producers of C & H Cane Sugar sell the product in five-pound bags, one-pound bags, and one-pound boxes. When developing its advertising strategy, C & H will most likely use a(n)_____ market. a. undifferentiated b. differentiated c. product strategy […]

The management at Allied Electronics is having difficulty in raising the introductory price on system components to cover the increased costs of producing the sensing devices for home security systems. Apparently, Allied used a(n)____________strategy in pricing these components. a. odd-even […]

The BCG analytical approach is more of a diagnostic tool than a guide for making strategy prescriptions. a. True b. False Scenario 10.2 Use the following to answer the questions. Traveler is a bus line operating in the Northeast and […]

NAFTA eventually eliminates all tariffs on goods produced and traded between the United States, Mexico, and Brazil. a. True b. False The actual act of purchase is the second stage of the consumer buying decision process. a. True b. False […]

One objective of consumer sales promotion techniques is to encourage patronage for a specific retail store. a. True b. False When encoding a message, the source should use signs or symbols that are new to the audience. a. True b. […]

A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is: a. web-based inventory management. b. just-in-time production. c. electronic data interchange. d. universal product codes. e. activity based management. It is not unusual for […]

Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing? a. There are no risks involved with allowing a foreign franchisee. b. The franchiser does not have to put up […]

Successful marketers that understand the significance of word-of-mouth communication seek out opinion leaders and try to encourage them to try their products in the hope they will spread favorable word about them. a. True b. False During the decoding process, […]

Both production and consumption of services occur at the same time. a. True b. False Refer to Scenario 3.1. Milton Hershey contributed resources to the community to improve the overall quality of life for consumers, employees, and the community in […]

New products seldom generate enough sales to bring immediate profits. a. True b. False When the managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that is an integral part […]

Segmentation variables are characteristics of individuals, groups, or organizations in a total market. a. True b. False The focal point of all marketing activities is its: a. products. b. marketing mix. c. profits. d. sales. e. customers. Answer: e Reference […]

While consumers can use websites to access more information, marketers can also use the same sites to get information on the consumer. a. True b. False St. Jude’s Hospital decides to redo its kitchen with new flooring, cabinets, counters, and […]

When respondents are shown a list of various products, brands, and company names and then asked about advertisements they have seen lately, researchers are conducting a(n) . a. unaided recall test b. pretest c. recognition test d. aided recognition test […]

Estimates of sales are an important component of the business analysis stage of the new-product development process. a. True b. False In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account , […]

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of the product. a. True b.False Behavior Scan, a research company, provides information on household demographics, television viewing habits, and purchases tracked with […]

Marketers can control the perception of potential buyers. a. True b. False If a nonsmoker dines in a restaurant that does not impose a restriction on smoking, the overall quality of service experienced by the nonsmoking customer probably declines if […]

Costco believes that most of its sales are to small businesses rather than consumers, and that women are more likely to be making the purchasing decisions. This is an example of a(n) ______that Costco could test through marketing research. a. […]

Which of the following is true about NAFTA? a. The NAFTA effectively merged Canada, Brazil, and the United States into one market. b. It will increase the total output of goods and services to foreign markets. c. It will decrease […]

Which of the following are the major financial sources of buying power? a. Disposable incomes b. Past income, natural resources, and financial resources c. Wages, rents, and investments d. Income, wealth, and credit e. Discretionary incomes Changes Salon is part […]

Zipcar is a group of individuals who share a car’s services in order to save money and keep the environment green. Zipcar encourages its users to go to a blog and make comments or post ratings and reviews. These people […]

Scenario3.4 Use the following to answer the questions. WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food products. Silk Soymilk was first launched in 1996, and is committed to the health of its […]

Many laws that directly influence marketing activities were enacted either to preserve a competitive atmosphere or to protect consumers. a. True b. False Revlon, a maker of cosmetics and skin-care products, is effectively involved in the management of its supply […]

Dominos is looking into magazine advertising for its pizza. The company wants to reach as many people as possible, but due to budget constraints Dominos must reach consumers as efficiently as possible. What can Domino’s use to evaluate various magazines? […]

Which of the following is a primary distinction between a line extension and a product modification? a. A product modification results in a completely new product, while a line extension is simply changing an old product. b. Both line extension […]

Grant Turner makes an appointment to visit with a new dermatologist in town because of recent bad sunburn. When he arrives at the dermatologist’s office, Grant notices a foul odor in the air, worn floor coverings, cluttered rooms that have […]

Marketing citizenship refers to an organization’s obligation to maximize its positive impact and minimize its negative impact on society. a. True b. False Scenario1.1 Use the following to answer the questions. Greensprings Cemetery in upstate New York, offers a full-service […]

The term business markets refers only to producer markets. a. True b. False Promotion to encourage trial use mainly attempts to retain loyal customers. a. True b. False Answer: False Because services are intangible by nature, marketers should downplay the […]

Which of the following is nota generic competitor for Ford’s Expedition sport utility vehicle? a. Ford’s Escape SUV b. Enterprise car rental c. Harley-Davidson motorcycle d. Schwinn mountain bike e. Taxi cab ride Which of the following acts was enacted […]

One way for a company to measure the effectiveness of its publicity-based public relations efforts is to: a. tabulate the equivalent in advertising dollars if the time and space were purchased. b. ask for return of reply cards. c. calculate […]

Because ad agencies often get commissions on media purchases, firms can obtain some agency services at moderate prices. a. True b. False Selling products that are not in demand in all world markets, such as hand-powered washing machines for use […]

Socially responsible business practices have provided all of the following benefits except: a. creating goodwill toward the organization. b. attracting employees. c. reducing marketing costs. d. generating publicity for the firm. e. positively impacting local communities. In the context of […]

Relationship marketing is short-term, mutually beneficial arrangements in which the buyer and seller focus on the creation of satisfying exchanges. a. True b. False When making habitual purchases, a consumer engages in extended decision making behavior. a. True b. False […]

Economic forces determine the size and strength of demand for products. a. True b. False A disadvantage of the concentrated targeting strategy is that: a. the firm’s financial condition is tied to a single and specialized marketing mix. b. large […]

To be unbiased, a member of a consumer jury should not be a present user of the advertised product. a. True b. False Nordstrom’s, Macy’s, and JC Penney’s are all considered as: a. department stores. b. discount stores. c. off-price […]

Scenario 17.2 Use the following to answer the questions. The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl’s, Macy’s, and J.C. Penney […]

The Swatch Group is the parent company of the most successful wristwatch of all time, the Swatch. Headquartered in Switzerland, The Swatch Group recently entered into a partnership with a company in France to make the packaging materials for all […]

Dividing the percentage change in quantity demanded by the percentage change in price gives the: a. prestige demand curve. b. break-even point. c. marginal cost curve. d. price sensitivity curve. e. price elasticity of demand. Developing a list of potential […]

A distinguishing factor between a brand name and a brand mark is that a brand name . a. creates customer loyalty b. consists of words c. identifies only one item in the product mix d. is registered with the U.S. […]

Participants in frequently get to see pictures, products, advertising samples, and diagrams. a. online surveys b. personal interview surveys c. mail surveys d. telephone surveys e. probability samples In its advertisements for a light beer, Anheuser-Busch brewing company has decided […]

If a pull policy is used in promoting a product, the producer promotes the product only to the next marketing institution down the channel. a. True b. False Assisting the producer’s customers in selling to their own customers is the […]

The step of the personal selling process in which a salesperson contacts a potential customer is called: a. making the presentation. b. following up. c. the preapproach. d. the approach. e. prospecting. Differential pricing means different buyers pay different prices […]

Obtaining a specialty product involves a considerable amount of comparison activity. a. True b. False Organizations should define themselves not according to the products they produce, but according to: a. how profitable they are. b. the price of their stock. […]

The marketing concept is bestdefined as: a. a customer’s subjective assessment of benefits relative to costs in determining the worth of a product. b. a philosophy stating that an organization should try to satisfy customers’ needs through a coordinated set […]

Ads for beauty products often suggest that purchasing these products will bring love, helping to fulfill one’s social needs. a. True b. False Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation […]

In some cases, the types of services offered by a supplier may constitute a primary advantage over suppliers of similar products. a. True b. False A market segment profile provides customers with an understanding of how a business can use […]

Reminder advertising is not applicable to new products. a. True b. False Head nodding, winking, hand gestures, and arm motions are all forms of _________communication. a. kinesic b. spacing c. proxemics d. touching e. tactile Answer: a The product variable […]

Services delivered through machines such as computer kiosks, ATMs, and vending machines can reduce the________aspect that arises from increased contact with human employees. a. intangibility b. perishability c. inseparability d. heterogeneity e. tangibility A market segment profile deals primarily with […]

Online focus groups are more expensive than tradition sit down groups. a. True b. False One way an advertising agency assists a firm is by taking care of all the grunt work in order to give its clients time to […]

The trade alliance that includes Brazil, Argentina, Uruguay, and other countries is known as . a. OPEC b. APEC c. MERCOSUR d. NAFTA e. the Common Market Which of the following phases of new-product development is likely the most cost-effective […]

Many companies choose to standardize their____across national boundaries to maintain a consistent and well-integrated corporate culture. a. technology b. ethical behavior c. language d. dress code e. products Karla tells Jeff that she likes his team’s idea about new shock-resistance […]

One of the ways in which service businesses communicate a higher degree of trust to their customers is by having their employees be well-groomed, sharp looking, and dressed in appropriate uniforms. This is a way to address the____________characteristic of services. […]

The target market of a regional shopping center typically includes at least__________ people. a. 25,000 b. 50,000 c. 100,000 d. 150,000 e. 250,000 Scenario 10.2 Use the following to answer the questions. Traveler is a bus line operating in the […]

Scenario 12.4 Use the following to answer the questions. The BASF Chemical Company in Germany has developed a new rubberized coating. The product is used on cell phones and other hand-held electronic devices that give them protection from falls and […]

The close relationship of Home Depot’s philanthropic initiatives and its business goals is an example of: a. strategic philanthropy. b. strategic ethics. c. cause-related marketing. d. strategic marketing. e. environmental philanthropy. Marketing ethics goes beyond legal issues, although ethical disputes […]

Question marks have a dominant share of the market, but low prospects for growth. a. True b. False Sporadic recruiting is more desirable than continuous recruiting because of the expense involved in the process. a. True b. False Answer: False […]

Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are known as: a. partnerships. b. co-ops. c. monopolies. d. reciprocities. e. resellers. Honeybees are disappearing at an alarming rate and since they […]

Public relations is a set of tools to be used primarily during crises. a. True b. False Cash cows are products with a dominant share of the market and good prospects for growth. a. True b. False Answer: False Marcellis […]

A concession in price in business markets to achieve a desired goal is called a(n): a. allowance. b. objective-oriented discount. c. cash discount. d. trade discount. e. cumulative discount. Advertising is one element of the promotion mix that is too […]

A product manager of an organization is responsible for the development of new products that may be aimed at new markets. a. True b. False Manufacturers can facilitate comparison shopping to allow customers to evaluate different options. a. True b. […]

Scenario 11.1 Use the scenario to answer the questions. Cheetos Fat-free Crunchies is a product developed through continuous innovation. Cheetos engineered a technique for making low-fat snacks that taste delicious and also remain fresh for a longer duration. It introduced […]

Setting prices for business products is very similar to setting prices for consumer products. a. True b. False The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy […]

A popular branding strategy involves , an agreement in which a company permits another organization to use its brand on other products for an authorizing fee. a. brand licensing b. brand extensions c. dual-branding d. co-branding e. cooperative branding A […]

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n)_____ targeting strategy for laundry detergents. a. multiuse b. differentiated c. stratified d. undifferentiated e. concentrated The time lag […]

Wholesalers play a major role in creating time, place, and possession utility and, in some cases, form utility. a. True b. False A public warehouse is a: a. business that leases storage space and related facilities for distribution to other […]

United Clothes, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of channel is called: a. horizontal integration. b. vertical integration. c. multilevel integration. d. retail […]

Madison is responsible for the freight transportation of products sold by Richland Tech, a producer of cooking oils sold to large institutions. Since Madison needs to schedule freight transportation with the mode that provides the most flexible schedules and routes, […]

Which of the following products is most likely to have its market segment based on age? a. Nike shoes b. Lipton Iced Tea c. Bic pens d. Legos e. Carpet When Busch Light Beer was introduced as part of the […]

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes a(n)____ demand. a. joint b. inelastic c. consumer d. fluctuating e. […]

Technological changes do not directly affect what, how, when, and where products are marketed. a. True b. False For which of the following products would a consumer most likely use limited decision making behavior? a. Detergent b. Toothpaste c. Automobile […]

Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called advertising. a. institutional b. product c. organizational d. pioneer e. advocacy Tech Silicon buys silicon which is […]

The manager of Mega Market, an online store, is interested in asking consumers what they think about the store’s new web page and expanded product selection. If the manager would like to obtain a high response rate while avoiding interviewers’ […]

An offshoot of mail surveys,_____ have shortcomings because the people who participate in them generally have higher incomes and education levels than the general population. a. purchase diaries b. telephone surveys c. online surveys d. focus-group interviews e. immediate feedback […]

Evaluating a portion of the product on the assumption that its characteristics represent the entire lot is known as: a. heterogeneous selection. b. description. c. trust. d. negotiated inspection. e. sampling. When researchers divide the population of interest in a […]

At the heart of the ______are agreements that provide legal ground rules for international commerce and trade policy. a. United Nations b. ASEAN c. MERCOSUR d. WTO e. APEC are agreements that provide legal ground rules for international commerce and […]

The RedCap Corporation is committed to social responsibility. It is looking for a new shipping partner and has found LogiSpec, one that seems to be perfect since it employs individuals with disabilities, contributes a portion of profit to the local […]

The primary goal of a media planner is to: a. choose the best commercial spots available. b. develop a message that works well with the firm’s target market. c. achieve the appropriate message reach and frequency. d. use a wide […]

With respect to inventory, wholesalers can help retailers with all of the following except _____. a. selection b. storage c. inventory control d. transportation e. production When Blue-ray disc players were first introduced to the market, which of the following […]

A television advertisement that transmits several types of audio messages and visual materials may be ineffective. a. True b. False When DataComp Corp., a producer of software, delayed the introduction of its new spreadsheet app to modify the package, its […]

Scenario 13.2 Use the following to answer the questions. Star Supplies Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star […]

The limitations in using publicity-based public relations tools stem primarily from the fact that: a. marketers alter the length of publicity releases. b. publicity is never properly managed by media personnel. c. media personnel consider only unfavorable messages as newsworthy. […]

When individuals’ behaviors are tracked from television sets to checkout counters using equipment provided by the marketer, this is known as . a. family behavior recording b. single-source data c. individual consumer jury d. advertisement exposure data e. detailed market […]

A Sony laptop that has an ‘œIntel’ logo on its keyboard is an example of . a. brand extension b. brand licensing c. co-branding d. individual branding e. line family branding Products for which buyers are willing to spend much […]

People-based services are often prone to fluctuations in quality from one time period to the next. a. True b. False Breakeven analysis is a tool that marketers are most likely to employ during the______________stage of the new-product development process. a. […]

Scenario 6.2 Use the following to answer the questions. Both the Racer and the Strider were very popular choices for family vans. Racer noticed that the majority of its customers were families with 3 or more children, and so they […]

Which of the following pricing strategies most likely results in a retailer losing money on the product? a. Price leader pricing b. Psychological pricing c. Penetration pricing d. Special-event pricing e. Ethical pricing Marketing research is a systematic and orderly […]

interpretation focuses on what is typical or what deviates from the average. a. Statistical b. Descriptive c. Exploratory d. Secondary e. Primary Which of the following is the most important consideration when choosing an event to sponsor? a. Reasonable association […]

Dion is a marketing communications consultant who specializes in the strategic use of social networking sites. Which of the following types of companies can use Dion’s services? a. Any sized company b. Only large to medium sized companies c. Only […]

Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time. a. True b. False Having used both Secret and Sure deodorants, Annette feels that Secret is a good product and the one that best […]

Darius Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This […]

Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer? a. Maturity b. Growth c. Introduction d. Market reduction e. Decline Scenario 10.1 Use the following to answer the […]

A mill in Utah buys grains from cultivators in the western region. Which of the following is a buying method that should be used by the purchasing agent of the mill? a. Description b. Inspection c. Sampling d. Negotiation e. […]

The_____ stage in the product life cycle is critical to a product’s survival because competitive reactions to the product’s success during this period will affect the product’s life expectancy. a. decline b. expansion c. growth d. introduction e. stabilization Bob […]

The point at which marginal revenue equals marginal cost is the break-even point. a. True b. False Multiple packaging is . a. likely to decrease serving size b. the same as family packaging c. likely to increase demand d. the […]

If self-interest creates misunderstanding about role expectations, the end result is frustration and conflict for the whole channel. a. True b. False Fixed costs vary with the number of units produced or sold. a. True b. False Answer: False Scenario […]

A research designed to verify insights through an objective procedure to help marketers to choose between several alternatives is known as a(n) research. a. primary b. secondary c. exploratory d. conclusive e. hypothetical Scenario 10.1 Use the following to answer […]

Which of the following best illustrates a high-contact service? a. Appliance repair b. Newspaper delivery c. Tax preparation d. Dry cleaning e. Plastic surgery Podcast listeners have the ability to send comments to the podcaster regarding the material presented in […]

Retailers like Costco and Walmart are considered to be members of the market. a. reseller b. customer c. producer d. institutional e. services Scenario 15.2 Use the following to answer the questions. The manufacturers of Whizz, a new laundry detergent, […]

A psychological price is designed to encourage purchases on the basis of rational response rather than on the basis of emotional reactions. a. True b. False Use the following to answer the questions. The Presto Company manufactures several types of […]

With respect to the components of a communication process, the process of putting one’s thoughts (meaning) into signs (symbols) is called: a. decoding. b. noise. c. interference. d. channelizing. e. encoding. Maria Martinez works for a cosmetics manufacturer and is […]

Toyota’s sponsorship of a major Professional Golf Association tournament would be an example of a(n)_____ tool. a. advertising b. public relations c. sales promotion d. publicity e. personal selling Supply chains driven by firmÂestablished goals focus on the ‘œoperative priorities’ […]

The U.S. Army recruits soldiers based on the slogan, “An army of one,” implying that people can reach their full personal potential in the U.S. Army. In accordance with Maslow’s hierarchy of needs, this is an appeal to the _____ […]

Beyond the obvious limitation that the package must be large enough to hold the product, a package can be designed to appear taller or shorter. a. True b. False Which of the following is not a ‘œcustomer contact’ characteristic in […]

Artwork, a major part of most advertisements, consists of the: a. illustration and the signature. b. illustration and the layout. c. illustration and type of print used in the headlines. d. layout and the signature. e. method by which all […]

Brand uniqueness is not important in non-price competition. a. True b. False Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The first sign of a problem: a. […]

One reason that promotion suffers from widespread criticism is that promotional efforts are highly visible and affect our everyday lives. a. True b. False Sales promotion may facilitate personal selling. a. True b. False Answer: True The purpose of the […]

What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items? a. Materials handling b. Warehousing c. Transportation d. Inventory management e. Order processing Scenario 10.4 Use the […]

Generally, consumer sweepstakes are more popular than consumer contests. a. True b. False Advertising, personal selling, sales promotion, and public relations are called: a. promotion mix ingredients. b. marketing mix components. c. characteristics of a product. d. advertising tools. e. […]

When a company that produces computer printers prices them low, but the ink required to operate the printer is priced higher per relative usage, it is using: a. bait pricing. b. premium pricing c. penetration pricing. d. price lining. e. […]

The forecasting techniques that assume past sales patterns will continue into the future are all variations of: a. regression analysis. b. random factor analysis. c. seasonal analysis. d. time series analysis. e. past sales forecasting surveys. PepsiCo has developed a […]

Ben is responsible for managing the customer satisfaction of Hampton Inn motel guests. Ben is currently analyzing the customer relationship management (CRM) program at Hampton Inn and is contemplating where he should begin making changes. Which of the following would […]

An important goal of physical distribution is reducing the: a. inventory management. b. outsourcing evaluation. c. electronic data interchange. d. order processing. e. cycle time. There is some concern that marketing research has been used incorrectly by some firms. The […]

Scenario 9.2 Use the following to answer the questions. Regardless of their age, income, or gender, an increasing number of people are turning to the Internet to search for information, products, people, news, maps, entertainment, and whatever else you can […]

Some support personnel, such as trade salespeople, may perform order-taking functions in addition to support functions. a. True b. False When Zappos Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties […]

Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during the___________phase of the new-product development process. a. commercialization b. screening c. concept testing d. product development e. test marketing Emily Dawson and seven other people were hired […]

Most pricing objectives based on available when prices are set. a. market share b. cash flow c. return on investment d. survival e. profit are achieved by trial and error because not all cost and revenue data are Demand-based pricing […]

Customer benefits include time and effort. a. True b. False Through a series of court decisions, a hierarchy of brand protection based on brand type has been created. These brand types include all but _____ brands. a. arbitrary b. descriptive […]

Packaging can be used to communicate symbolically the quality or premium nature of a product. a. True b. False The forces of the marketing environment include: a. political, legal and regulatory, sociocultural, technological, economic, and competitive. b. sociocultural, legal, regulatory, […]

Carla is stopped by a researcher at a shopping mall and asked which was the last television commercial she remembers seeing. This is an example of a(n) . a. unaided recall test b. pretest c. recognition test d. aided recall […]

When Chrysler produces new model vehicles, it discontinues production of previous year’s model. However, when Apple brings out a new iPhone, it continues to produce the previous version for at least some period of time. Chrysler’s newÂproduct strategy is an […]

The buildup approach measure of sales potential: a. starts with broad estimates of general economic activity. b. ends with an estimate of a single firm’s sales of a specific product. c. starts with forecasts about demand for a specific product […]

When Amazon.com introduced its Kindle FireHD, it was available through Amazon.com, Staples office supplies store, and a few other retailers. The Kindle FireHD was most likely distributed through the_________of distribution. a. selective level b. extensive level c. intensive level d. […]

Telephone surveys allow an interviewer to gain rapport with respondents and to ask probing questions. a. True b. False If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct a(n) […]

When Julia goes for the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a copy of the book The Goal. Julia is in the consumer buying […]

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara […]

Marketing ethics: a. refers to laws and regulations that govern marketing. b. refers to principles and standards that define acceptable conduct in marketing. c. maximizes an organization’s positive impact and minimizes its negative impact on society. d. is most important […]

Deciding to add gel insoles to its running shoes would be a change in the Nike. a. price b. good c. product d. promotion e. distribution Because we are exposed to so much promotion in our daily lives, and the […]

Scenario1.2 Use the following to answer the questions. Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations […]

The term dumping refers to the sale of: a. products in foreign markets that cannot be sold in the United States. b. products in foreign markets at prices above those charged in the United States. c. all discontinued U.S. products […]

Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, John Wilmen, director of marketing for the publishing company, told Gloria Shepherd, Jennifer’s sales manager, to […]

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to manufacture other products or by using them in their operations are classified as markets. a. consumer b. institutional c. producer […]

H&R Block, a major tax preparation firm, reported facing issues with regard to its employees’ inconsistency in filing of returns. With which of the following characteristics of the service offering is the firm experiencing an issue? a. Tangibility b. Intangibility […]

In general, corporate executives prefer research reports that are short, clear, and simply expressed. a. True b. False If an advertising campaign is aimed at increasing brand awareness and consumers’ knowledge of a product’s features, the advertising objective should be […]

An organization that decides to buy all parts of an item from the same company is using: a. single-supplier purchasing. b. multiple sourcing. c. same vendor analyzing. d. straight rebuying. e. sole sourcing. Magnetic Springs wants to ship its bottled […]

Which of the following statements about price elasticity is false? a. Steak is an example of a product that has an elastic demand for most people, because when price goes up quantity demanded goes down. b. Elasticity of demand is […]

Anyone who becomes a member of social networking sites is a Collector. a. True b. False Customer advisory boards are small groups of actual customers who serve as sounding boards for new product ideas and offer insights into their feelings […]