Marketers must constantly monitor their competitors’ products, prices, distribution, and
promotional efforts because:
a. competitors may be violating truthinadvertising laws.
b. it can lower a firm’s command over the market price.
c. it will help prevent indirect competition.
d. firms may need to adjust their marketing mix based on new competing products.
Kurt Lewin’s theory of human behavior defines behavior as a function of the
interactions of personal influences and pressures exerted by external environmental
forces.
a. True
b. False
You are excited about being promoted to general sales manager, a middle management
job, but you feel a bit overwhelmed as you anticipate the demands of the new position.
A colleague tries to help, pointing out that you will also be shedding some
responsibilities. Which of the following will not be part of your new job?
a. Quarterly plans
b. Daily and weekly plans
c. Divisional policies
d. Divisional procedures
e. Semiannual plans
A market in which there are more buyers for fewer goods and services is known as a:
a. seller’s market.
b. monopoly.
c. buyer’s market.
d. oligopoly.
_____ is a cash reward paid to retail salespeople for every unit of a product they sell.
a. Rebate
b. Push money
c. Handling fee
d. Buying allowance
A successful customer relationship management system reorganizes the business
processes to deliver superior value to the customers by:
a. decentralizing the marketing data.
b. bringing down a firm’s reliance on expensive word-of-mouth marketing.
c. expanding the response time for customer queries to increase their satisfaction.
d. empowering customers to find information they need to manage their own orders.
The _____ is an organization that makes binding decisions in mediating disputes, and
reducing trade barriers.
a. exporting
b. WTO
c. infrastructure
d. exchange rate
e. tariff
f. import quota
g. dumping
h. ISO certification
i. foreign licensing
j. multinational corporation
k. global marketing strategy
l. multidomestic marketing strategy
m. countertrade
n. related party trade
o. exchange control
p. customs union
q. CAFTA-DR
r. importer
s. embargo
t. franchise
Which type of sales promotion is intended to capture the impulse purchase?
a. Trade allowances
b. Trade shows
c. Point-of-purchase displays
d. Push money
In an attempt to expand viewership of the television show Mystery Science Theater
3000 in its early days, the producers encouraged viewers to make copies of the show on
videotapes and give them to friends. The closing credits included the words “Keep
circulating the tapes!” This is an example of:
a. guerrilla marketing.
b. cause marketing.
c. ambush marketing.
d. cloud marketing.
Administrative barriers are more subtle than tariffs.
a. True
b. False
Many companies use an approach called _____ to coordinate all promotional activities
so that the consumer receives a unified and consistent message.
a. intraorganizational communications
b. internal marketing strategies
c. integrated marketing communications
d. corporate communications
Danielle and her roommate Sile are comparing the charges on their telephone bills.
Both women get their Internet service bundled with their mobile phone charges.
Danielle has a smartphone and Sile has a device with only basic features, so Danielle
pays more for data downloading. Both women were surprised at the significant amount
they are each charged annually for “regulatory cost recovery fees.”
Required:
What service is included in “regulatory cost recovery fees”?
a. Improvement to increase the speed of Internet downloading is included.
b. Erection of more rural cell phone relay towers is included.
c. Outreach to other telephone providers to share facilities is included.
d. No service is included; fees are additional telephone company revenue.
e. Collaboration with federal, state, and local regulators is included.
A planned channel system designed to improve distribution efficiency and
cost-effectiveness by integrating various functions throughout the distribution chain is
called a(n) _____ marketing system.
a. intensive
b. associative
c. integrative
d. vertical
A cost that remains stable at any production level within a certain range is called a(n)
_____ cost.
a. variable
b. fixed
c. average total
d. marginal
A(n) _____ sets the stage for more in-depth research in a marketing research process by
further clarifying what researchers need to test. It is a tentative explanation for a
specific event.
a. sales analysis
b. informal investigation
c. ethnographic study
d. hypothesis
Some of the most significant challenges facing ebusiness today involve the security of
online monetary transactions and the protection of consumer privacy.
a. True
b. False
Social class has rankings determined by income, occupation, education, family
background, and location of residence.
a. True
b. False
Technological changes and the increased use of wifi has enabled companies such as
Netflix to create a large consumer following and changed consumer’s viewing habits.
Netflix has emerged as an entertainment company offering original content that’s not
available on cable or satellite networks. Netflix is a _____ competitor to cable and
satellite companies.
a. direct
b. indirect
c. insignificant
d. substitute
Emarketing can lead to copyright disputes when a site hosts content to which someone
else holds the rights.
a. True
b. False
Traditional brick-and-mortar stores such as Macy’s have recently closed stores due to
the growing trend of Internet shopping and changing consumer behavior who visit
malls on a less frequent basis.
a. True
b. False
_____ make regular deliveries to retailers, perform sales and collection functions, and
promote product lines.
a. Clearing agents
b. Boundary spanners
c. Truck jobbers
d. Drop shippers
Basing-point pricing policy always calculates the freight charges from the point or
location from which the goods are actually shipped.
a. True
b. False
Controlling part of the supply chain that involves finished product storage, outbound
logistics, marketing and sales, and customer service is called _____.
a. distribution channel
b. forward integration
c. logistics
d. dual distribution
e. direct selling
f. intensive distribution
g. selective distribution
h. exclusive distribution
i. tying agreement
j. backward integration
k. administered marketing system
l. corporate marketing system
m. contractual marketing system
n. private carriers
o. materials handling system
p. franchise
q. common carriers
r. upstream management
s. suboptimization
t. downstream management
Modifying the control panel of a washing machine to accommodate for those cultures
that read from right to left would be considered a form of product invention.
a. True
b. False
Customer relationship management systems are more beneficial to retailers than to B2B
firms.
a. True
b. False
A consultant has offered to help your team build mobile apps. She starts by explaining
QR codes. Which of the following points does she make?
a. QR stands for Quick Reality.
b. QR codes are threedimensional barcodes.
c. Some mobile phones are equipped with dedicated QR readers.
d. QR codes can contain information leading to content, but not to video
e. QR stands for Quick Response
Sports celebrities and actors use social media marketing to create a positive public
image.
a. True
b. False
Brand extension is the strategy of developing individual offerings that appeal to
different market segments while remaining closely related to the existing product line.
a. True
b. False
_____ defines consumer groups according to variables such as gender, age, income,
occupation, education, sexual orientation, household size, and stage in the family
lifecycle.
a. Geographic segmentation
b. End-use segmentation
c. Product-based segmentation
d. Demographic segmentation
It cost your firm a lot of money to sponsor a talk on relationship marketing by a
socalled business guru. You feel the money was not well spent, because the speaker
failed to discuss all key points. From the following list, choose the key point(s) about
relationship marketing that should have been covered in the talk.
a. Relationship marketing broadens the scope of external marketing relationships.
b. Relationship marketing narrows the scope of external marketing relationships.
c. Relationship marketing prioritizes external, customerfacing efforts over internal,
intradepartmental efforts.
d. To be successful in relationship marketing, firms must hire or develop a charismatic
CEO.
e. Relationship marketing is synonymous with social marketing.
Sustainability has become an important value among individuals in the United States
and some believe that man-made factors such as the increased use of diesel and
gasoline in cars has led to global warming. Those worried about global warming and
seeking ways to reduce their carbon footprint and have invested in products such as
solar panels for their homes and electric or hybrid vehicles. What type of segmentation
would be most appropriate for Toyota to utilize in marketing its Prius – a hybrid
vehicle?
a. psychographic
b. demographic
c. geographic
d. benefit
You learned the difference between strategic goals and implementation tactics in a
marketing course, but you’re having trouble differentiating between them in practice. In
your social media marketing plan, which of the following is a tactic?
a. Create awareness of our brand.
b. Reach new customers.
c. Offer coupons on Facebook.
d. Generate sales leads.
e. Increase customer satisfaction.
The chief executive officer (CEO) and vice president of marketing spend a greater
proportion of their time on operational planning than do managers at all other
organizational levels.
a. True
b. False
An electronics company has seen a 35–57% increase during the fourth quarter for the
last decade. Company executives attribute this immense increase in profits to the
holiday season.
Required:
Which of the following best explains the company’s fourth-quarter growth?
a. The company employs a short distribution channel.
b. The company has a strong relationship with customers.
c. The company provides flexible and customized goods.
d. The company uses few promotional strategies during the holidays.
e. The demand for the company’s goods fluctuates over the course of the year.