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The affordable method involves setting promotion budgets to match competitors'
outlays.
Sales of products decline because of technological advances, shifts in consumer tastes,
and increased competition.
The federal government may prevent a company from adding products through
acquisitions if acquisition threatens to lessen competition.
When a company hires lobbyists to influence legislation affecting its industry, it is
taking a defensive stance toward the marketing environment.
In an automated warehouse, orders are fed directly from the retailer's information
system to the wholesaler's, and the items are picked up by mechanical devices and taken
to a shipping platform where they are assembled.
Advertising is the least used of the major promotion tools, although it has great
potential for building consumer awareness and reference.
Price decisions must be coordinated with product design, distribution, and promotion
decisions to form a consistent and effective integrated marketing mix program.
The meaning of value is perceived identically by all consumers.
Because personal selling involves developing relationships, it is acceptable for
salespeople to stretch claims they make about a product's advantages.
Integrating the promotion mix starts with suppliers.
Changing technologies, especially with digital content, is significantly increasing the
role of public relations in a firm's integrated marketing communications program.
Pricing strategies tend to change and evolve as the average product passes through its
life cycle.
Retailers must work to ensure customers identify with their products. Differentiation
and positioning are vital to communicating this message.
Price is the most inflexible of the marketing mix elements.
A weakness of market research is that it cannot help marketers measure the
effectiveness of pricing changes or promotion activities.
Benchmarking involves comparing the firm's products and processes to those of the
competitors to identify best practices to improve quality and performance.
As a part of intensive distribution, dealers are expected to refrain from selling the
products of the producers' competitors.
The integrated marketing concept ties together all of the company's messages and
images.
The communication effects of advertisements and ad campaigns are more difficult to
measure than the sales and profit effects.
Overhead costs are costs that do not vary with production or sales level.
Customers located close to a firm are less likely to benefit from FOB-origin pricing
than customers located farther away.
The purpose of strategic planning is to find ways in which your company can best use
its strengths to take advantage of attractive opportunities in the environment.
A marketing Web site interacts with consumers to move them closer to a direct purchase
or other marketing outcome.
Social selling emphasizes personal contact between the company and its customers.
When Tool Trade, an American company, uses qualified Brazilian manufacturers to
produce many of the products it sells to retailers in South America, Tool Trade is using
contract manufacturing.
Personality is a person's pattern of living as expressed in his or her psychographics.
Trade promotions are targeted at final buyers.
The colors, layout, and music in a store or a product package are only minor aspects of
the shopping experience and marketers spend little time making decisions about them.
Rational appeals are often used to urge people to support social causes, such as a
cleaner environment or helping the disadvantaged.
When backed by buying power, needs become wants.
The customer-driven marketing strategy involves four steps: market segmentation,
market targeting, positioning, and differentiation.
In a subsistence economy, fast growth in manufacturing results in rapid overall
economic growth.
Pricing across a product mix is difficult because various products have related demand
and costs, and products face different degrees of competition.
Which of the following is true about behavioral segmentation on the basis of the loyalty
variable?
A) Consumers tend to pay more for products that are targeted at their respective age
group or generation.
B) By looking at customers who are shifting away from its brand, a company can learn
about its marketing weaknesses and take actions to correct them.
C) Highly loyal customers of a brand are less likely to engage in word-of-mouth
publicity than those who are not.
D) Completely loyal customers of a brand are typically loyal to two or three brands of a
given product.
E) Only consumers who seek premium or luxury services are subjected to behavioral
segmentation based on the loyalty variable.
If demand changes greatly with a small change in price, the demand is ________.
A) variable
B) inelastic
C) derived
D) elastic
E) negative
Since secondary data provide a good starting point for research and often help define
problems and research objectives, companies do not need to collect primary data.
Marketing mix planning begins with ________.
A) building an offering that brings value to target customers
B) finding a suitable promotion strategy for the product
C) setting a reasonable price for the product
D) selecting the right channel for distribution of the product
E) calculating the total costs involved in manufacturing the product
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 and least time consuming method to use.
C) It is the least logical budget-setting method.
D) It involves setting the promotion budget to match competitors' outlays.
E) It wrongly views sales as the cause of promotion rather than as the result.
________ consists of inviting 6 to 10 people to meet with a trained moderator to talk
about a product, service, or organization.
A) Telephone interviewing
B) Individual interviewing
C) A mail questionnaire
D) An online survey
E) Focus group interviewing
________ measures the profits generated by investments in marketing activities.
A) A SWOT analysis
B) A marketing audit
C) Regression analysis
D) Return on marketing investment
E) Marketing budget evaluation
Which of the following is most likely an advantage of survey research?
A) The flexibility of survey research is high; it can be used to obtain many different
kinds of information in many different situations.
B) Survey research allows researchers to observe respondents closely in their natural
environments.
C) The chances of getting dishonest feedback are almost negligible with survey
research.
D) The attitudes and motives of the customers can be easily determined through survey
research.
E) The data gathered in survey research is impartial and free from bias as the surveys
are done in-person to evaluate consumer behavior.
After a research instrument is selected, the next step in the marketing research process
is to ________.
A) select a sampling method
B) interpret the research findings
C) implement the research plan
D) evaluate alternatives
E) select a research approach
A ________ consists of the activities an individual is expected to perform, according to
the people around him/her.
A) motive
B) role
C) lifestyle
D) life cycle
E) perception
Buyers with low sales resistance can often be tempted by all the following common
features of infomercials EXCEPT ________.
A) elaborately staged demonstrations
B) "while they last" time limitations
C) free shipping
D) smooth-talking hosts
E) claims of drastic price reductions
A person's buying choices are influenced by four major psychological factors. Which of
the following is NOT one of these factors?
A) motivation
B) perception
C) association
D) learning
E) beliefs
Companies can research many aspects of buying decisions. However, the one that is the
most difficult to identify is ________.
A) what consumers buy
B) how and how much they buy
C) why they buy
D) when they buy
E) where they buy
Boxes, Inc. sells products to end users or to other companies that will sell to end users.
Boxes, Inc. is a ________.
A) reseller
B) marketing services agencies
C) financial intermediaries
D) physical distribution firms
E) wholesalers
When customers don't know what they want or don't even know what's possible, the
most effective marketing strategy is ________ marketing.
A) customer-driven
B) customer-driving
C) societal
D) ambush
E) affinity
Governments develop public policy to ________.
A) encourage deregulation
B) identify demographic patterns
C) identify cultural patterns
D) guide commerce
E) protect marketers
Product planners need to consider products and services on three levels. Each level adds
more customer value. The most basic level is ________, which addresses the question,
"What is the buyer really buying?"
A) an actual product
B) an augmented product
C) core customer value
D) co-branding
E) exchange value
Karl Harris, a marketing critic, is concerned about the pervasiveness of marketing. He
points out that advertising messages are everywhere, from Web sites and e-mails to
unwanted direct mail and catalogs to television commercials and product tie-ins to
billboards and store signage. Karl is concerned about ________.
A) high packaging costs
B) cultural pollution
C) deceptive practices
D) false wants and too much materialism
E) the balance between private goods and social goods
Which of the following is an accurate statement about the income distribution of the
American population?
A) The top 20 percent of earners achieves 68 percent of the country's adjusted gross
income.
B) The bottom 40 percent of earners captures just 11 percent of total income.
C) The top 5 percent of American earners captures 18 percent of all income.
D) The distribution of income allows most companies to target earners of all income
levels.
E) Changes in income and interest rates minimally impact spending patterns.
Lark Inc., an American electronics company, is currently reviewing new geographical
markets to sell its highly popular televisions. By 2020, it plans to open new stores
across all the major South Asian cities. Lark is most likely following a ________
strategy.
A) local marketing
B) market development
C) diversification
D) product adaptation
E) product development
________ buy mostly from producers and sell to retailers and industrial consumers.
A) Warehouse clubs
B) Factory outlets
C) Wholesalers
D) Discount stores
E) Megaretailers
Electrola Inc. is currently designing a new product line with the goal of making each
product easy to recover, reuse, or recycle. Electrola Inc. hopes to recover many of these
products when they reach the end of their life cycle and reuse their components in new
products. Electrola Inc. is in the ________ stage of environmental sustainability.
A) pollution prevention
B) new clean technology
C) product stewardship
D) beyond greening
E) sustainability vision
Which of the following is a primary reason that companies use e-learning to conduct
sales training programs?
A) Customer needs and habits can be unambiguously conveyed through online training
programs.
B) Sales training programs that do not use e-learning are mostly ineffective.
C) E-learning eliminates employee attrition.
D) E-learning is the best way to simulate real-life sales calls.
E) E-learning cuts travel and training costs.
Nike inadvertently offended Chinese officials when it ran an ad featuring LeBron James
crushing a number of revered Chinese figures in a kung fu-themed television ad. As a
result, Nike had to release a formal apology. This is an example of the impact of
________ on marketing strategy.
A) culture
B) political stability
C) level of industrialization
D) income distribution
E) monetary regulations
________ are communities over the Internet where people congregate, socialize, and
exchange views and information.
A) Corporate Web sites
B) Interactive television
C) Digital catalogs
D) Online social networks
E) Content sponsorships
Which of the following is an example of an internal stimulus that would most likely
lead to problem recognition?
A) A buyer gets a new idea from an advertisement.
B) A buyer gets a new idea at a trade show.
C) A buyer is unhappy with a current supplier's product quality.
D) A buyer receives a call from a salesperson offering better service.
E) A buyer learns about a new product at an industry convention.
Market targeting is ________.
A) arranging for a market offering to occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target consumers
B) dividing a market into distinct groups of buyers who have different needs and
characteristics
C) evaluating segment attractiveness and deciding how many and which segment(s) to
serve
D) marketing to buyers with separate marketing strategies or mixes
E) differentiating the firm's market offering to create customer value
If a buying center is most influenced by authority in the business buying process, it can
be safely concluded that ________ factors have a major influence on its buying
behavior.
A) technological
B) systemic
C) interpersonal
D) strategic
E) economic
Observation is best suited for ________ research.
A) exploratory
B) constructive
C) experimental
D) descriptive
E) survey
Cabela's stores are as much natural history museums for outdoor enthusiasts as they are
retail outlets. This information indicates that Cabela's is practicing ________.
A) wholesaling
B) nonstore retailing
C) shopper marketing
D) experiential retailing
E) showrooming
Which of the following is one of the four major communication functions?
A) coordination
B) distribution
C) noise
D) response
E) preference
The learning curve is representative of the ________.
A) per unit cost of output in the long run
B) drop in the average per-unit production cost that comes with accumulated production
experience
C) number of units the market will buy in a given time period, at different prices that
might be charged
D) total market demand resulting from different prices
E) per unit cost of output in the short run
Explain why selective attention is not controllable by a marketer.
Briefly describe how economic conditions impact a firm's pricing strategies.
What structure can an American family have now, as the traditional family has
changed?
What is a business portfolio? What are the steps involved in business portfolio
planning?
Describe the types of products that are intensively distributed and provide examples.
Why is the business buying process more formalized than the consumer buying
process?
How do socially responsible firms positively impact consumers and the environment?
Why should a company be concerned about integrating communications from different
sources within the company?
What is horizontal conflict? Illustrate your answer with an example.
What is personal selling? What are the advantages and disadvantages of a firm using
personal selling to promote a product or service?
Describe the significance of public relations as a promotion tool.
Explain how companies select, motivate, and evaluate intermediaries or channel
members.
Give two examples of product bundle pricing.
Casual Comfort sells its catalog items using FOB-origin pricing. Who pays the freight
charges?
How can a company benefit through a just-in-time logistics system?
Describe the political-legal factors that a company should consider before deciding to
conduct business in a foreign country.
Explain the methods of evaluating the performance of a sales force. Why is the
evaluation of a company's sales force considered necessary?
Explain what marketers can expect from individuals in the customer relationship group
classified as "butterflies."
What is cause-related marketing? Illustrate with examples.
Identify the major advantage of the following traditional forms of direct marketing:
telephone, direct mail, catalog, direct-response television, and kiosk.
