Which of the following is a critical issue facing governmental agencies regarding ethics
in marketing research?
a. Personal selling
b. Truth in advertising
c. Planned obsolescence
d. Invasion of personal privacy
When you are welcomed back by your name to a website you’ve shopped at before and
offered products suited specifically to your tastes and budget (based on your past
purchase), you are being targeted by:
a. personalized marketing.
b. geotargeting.
c. interstitial advertising.
d. engagement ads.
Which of the following firms is ranked as the world’s largest marketer in terms of
annual sales?
a. General Electric
b. ExxonMobil
c. Walmart
d. Royal Dutch Shell
Which of the following locations would be ideal for a U.S. firm hoping to nearshore its
operations?
a. Poland
b. China
c. India
d. Mexico
You are the head of pricing strategy for your firm. You are very excited about a new
point-of-sale system that has just been installed in all your firm’s retail outlets. The
system is a state-of-the-art real-time information system that captures the details of
every sale made in your retail outlets. You have up-to-the-minute data-on-demand
elements for your entire product line.
Required:
In using your new data-on-demand elements to make pricing decisions, how would you
handle the limitations of this approach?
a. Post charts of predicted future buying trends in the sales department as motivational
incentives.
b. Tell decision-making executives that you cannot produce an accurate estimation of
current trends.
c. Be prepared for unpredictable changes in demand because actual purchase data do
not allow estimation of future trends.
d. Change the way that the firm’s accounts receivable employees record information.
e. Change the way that the firm’s accounts payable employees record information.
A nation’s basic system of transportation networks, communication systems, and energy
facilities is referred to as its infrastructure.
a. True
b. False
The General Services Administration (GSA) is a central management agency of the
U.S. federal government that:
a. validates the laws and regulations governing business sales transactions in the United
States.
b. regulates purchases taking place in the mining industry.
c. procures goods and services and is responsible for property management and
information resources management.
d. regulates purchases taking place in the healthcare industry.
Researchers conducting studies in several different countries should consider cultural
differences when designing the research project.
a. True
b. False
Shippers that transport goods via water carriers incur very low costs compared with the
rates for other transportation modes.
a. True
b. False
The Sherman Antitrust Act, Clayton Act, and Federal Trade Commission Act are
evidence of federal commitment to maintaining a competitive business environment in
the United States.
a. True
b. False
Ryder and Reagan have been dating for several years and Ryder has started browsing
for engagement/wedding rings. He has heard that it’s typical to spend the equivalent of
5 months of salary on a ring which would equate to approximately $15,000. He is
excited about making a life commitment and is willing to invest in the relationship by
purchasing the ring. What type of purchase decision does the engagement/wedding ring
represent for Ryder?
a. high-involvement
b. low-involvement
c. medium-involvement
d. spurious involvement
ADA Inc. stopped its production of oral care goods after determining apparel
production to be its new primary objective. This is a direct result of the _____ planning
process at ADA Inc.
a. tactical
b. research
c. strategic
d. economic
Deflation is necessarily better for the economy than inflation as inflation devalues
money and reduces the purchasing power of consumers.
a. True
b. False
The demand side of the pricing equation focuses on:
a. revenue curves.
b. cost curves.
c. price curves.
d. value curves.
Which of the following would be visible in relationship marketing?
a. Focus on producing high quality goods
b. Sales orientation
c. Companywide consumer orientation
d. Strategic alliances
Ethics are:
a. beliefs or customs taught by one generation to the next, often orally.
b. the social causes promoted by the company.
c. established patterns of behavior that can be objectively verified within a particular
social setting.
d. the moral standards of behavior expected by society.
A _____ is a limited-function wholesaler that markets perishable food items.
a. cash-and-carry wholesaler
b. truck jobber
c. mail-order wholesaler
d. drop shipper
“Wordofmouth” advertising that has grown in effectiveness with the advent of the
Internet is called _____.
a. utility
b. buzz marketing
c. exchange process
d. seller’s market
e. buyer’s market
f. marketing myopia
g. social responsibility
h. relationship marketing
i. person marketing
j. place marketing
k. event marketing
l. organization marketing
m. interactive marketing
n. lifetime value of a customer
o. social marketing
p. onetoone marketing
q. strategic alliances
r. notforprofit organizations
s. ethics
t. mobile marketing
u. wholesalers
v. transactionbased marketing
Which of the following exemplifies a yield management pricing strategy?
a. Lowering cab rental rates on weekends compared to weekdays
b. Introducing a pack of oatmeal breakfast cereals at a price of $3 which actually cost
$5
c. Charging an exorbitant price for a designer outfit to signal quality and exclusiveness
d. Selling a brand of soap at 20 percent discount for a limited time period during its
introductory stage
Which of the following is not one of the motivations used to classify consumers in the
VALS framework?
a. Achievement motivated
b. Action motivated
c. Gender motivated
d. Principle motivated
Which of the following is most likely to be an example of a mass merchandiser?
a. A trade fair owner
b. A catalog retailer
c. A rack jobber
d. A convenience retailer
A market structure in which relatively few sellers compete and where high start-up
costs form barriers to keep out new competitors is referred to as a(n) _____.
a. breakeven analysis
b. tariffs
c. unfair-trade laws
d. incremental-cost pricing
e. profit maximization
f. demand
g. value pricing
h. monopoly
i. elasticity
j. marginal
k. fair-trade laws
l. yield management
m. oligopoly
n. cost-plus pricing
o. full-cost pricing
p. supply
q. marginal analysis
r. target-return objectives
s. market-share objectives
t. pure competition
Which of the following conditions would lead a company’s marketers to find a new
market, change prices, or compete in other ways to maintain an advantage?
a. When the bargaining power of suppliers is low
b. When the bargaining power of buyers is low
c. When the threat of substitute products is high
d. When the threat of new entrants it low
Annie’s Inc., which produces vinegar for cooking purposes, identified new uses for its
product and started promoting it as a fabric softener and a cleansing product. The
company started selling the same product in different packages modified for different
types of uses. This strategy used by Annie’s to increase the sales of its product is an
example of a _____ strategy.
a. brand extension
b. line engagement
c. market penetration
d. product diversification
_____ typically have a long marketing channel.
a. Standardized products
b. Perishable products
c. Complex products
d. Expensive products
Protection of consumer privacy is a major ethical issue faced by social media
marketers.
a. True
b. False
The term etailing refers to online retail sales.
a. True
b. False
Matching an internal strength with an external opportunity produces a situation known
as:
a. leverage.
b. constraint.
c. vulnerability.
d. plateau.
Which of the following is a characteristic of transaction-based marketing?
a. Frequent customer contact
b. Emphasis on long-term relationship
c. Customer interactions based on commitment and trust
d. Emphasis on individual sales
Instituting a companywide code of ethics helps guide salespeople to ethical behavior in
personal selling.
a. True
b. False
The government prohibits regulated monopolies in markets in which competition would
lead to an uneconomical duplication of services.
a. True
b. False
The _____ is a form of multinational economic integration that seeks to reconcile all
government regulations affecting trade.
a. common market
b. customary union
c. free-trade area
d. cooperation council
After defining the problem and conducting an exploratory investigation, the next step in
the marketing research process is to:
a. create a research design.
b. formulate a hypothesis.
c. select the respondents for the study.
d. gather primary and secondary data.