Fournotts Corp. manufactures and sells accessories for cell phones. To boost its sales,
the research and development team decides to use product modification as an approach
to new product development. In this scenario, the research and development team will
most likely:
a. eliminate products that are inconsistent with Fournotts’s business mission.
b. develop products by applying new technology.
c. make a slight change in the design or function of the existing products.
d. add new products to supplement Fournotts’s established product line.
When a firm focuses on its internal capabilities rather than on the desires and needs of
the marketplace, then the firm is said to have adopted the ______ orientation.
a. production
b. sales
c. market
d. societal
Which of the following activities is not required to achieve a market orientation?
a. Obtaining information about customers, competitors, and markets
b. Examining information about customers, competitors, and markets from a business
perspective
c. Employing a highquality sales force to aggressively promote goods and services
d. Determining and implementing actions to provide and deliver added value to
customers
Many foreign competitors don’t consider the United States a ripe target market yet.
a. True
b. False
_____________ is a specific system for gathering information from a single group of
respondents by continuously monitoring the advertising, promotion, and pricing they
are exposed to and the things they buy.
a. Scannerbased research
b. Evidencebased research
c. Observational research
d. Marketing research
The 99Center is a retail store where all the merchandise is priced at 99 cents. This
retailer uses a _____.
a. singleprice tactic
b. flexible pricing tactic
c. price lining tactic
d. price bundling tactic
Which of the following is NOT true about culture from the perspective of a global
marketer?
a. Culture underlies the family, the educational system, religion, and the social class
system.
b. A company that does not understand a country’s culture may try other means to
succeed in the country.
c. Cultural blunders lead to misunderstandings and often perceptions of rudeness or
even incompetence.
d. Culture is the common set of values shared by its citizens that determines what is
socially acceptable.
Which of the following is a difference between a joint venture and contract
manufacturing?
a. A joint venture is formed when a domestic firm buys part of a foreign company to
create a new entity, while firms choose contract manufacturing to avoid being involved
in licensing.
b. A joint venture is formed when a domestic firm broadens its global marketing base
without investment, while in contract manufacturing; a licensor allows another firm to
use its manufacturing process.
c. A joint venture is formed when several countries agree to work together to form a
common trade area, while contract manufacturing occurs when government efforts
stifle investment by foreign corporations.
d. A joint venture is formed when an agreement to stimulate international trade is made,
while contract manufacturing occurs when a tax is levied on the goods entering a
country.
Marketing career opportunities almost exclusively exist in nonbusiness organizations.
a. True
b. False
The social media users who maintain a social networking profile and visit other sites
are called __________.
a. collectors
b. critics
c. creators
d. joiners
A group of brands that results from an information search that a buyer can choose
among is referred to as the buyer’s ________________________.
a. evoked set
b. external set
c. internal set
d. planned set
Mobile research provides immediate feedback when a consumer makes a decision to
purchase, consumes a product, or experiences some form of promotion.
a. True
b. False
Which of the following statements is true of marketoriented firms?
a. They focus on their internal capabilities rather than on the desires and needs of the
customers.
b. They believe that people will buy more goods and services if aggressive sales
techniques are used and that high sales result in high profits.
c. They assume that the sale of goods or services does not depend on an aggressive
sales force but rather on a customer’s decision to purchase that product.
d. They claim that people must give up something in order to receive something else
they would rather have.
Grand Trunk Inc., a furniture manufacturing company, does not manufacture any pieces
until an order is received. It coordinates and integrates the activities of its suppliers,
designers, and carpenters to ensure an efficient production cycle. This enables Grand
Trunk Inc. to deliver the products to customers within five working days. This is an
example of _____ management.
a. supply chain
b. customer relationship
c. returns
d. asset lifecycle
Which statement accurately describes an outcome of acquiring and analyzing big data?
a. It will replace human reasoning with slower but more accurate decision making.
b. It will result in decision making that is based on intuition rather than actual
information.
c. It can be used to make decisions about automating supply chain processes, thus
replacing human labor.
d. It will accomplish repetitive tasks with significant precision but at a higher cost than
human number crunching.
Which of the following is true of usagerate segmentation?
a. It combines former users, potential users, firsttime users, light or irregular users,
medium users, and heavy users.
b. Categories of products do not vary with the product in userrate segmentation.
c. Heavy users often change their preferences.
d. It groups potential customers on the basis of their personality, motives, and lifestyles.
Adjacent innovation involves decisions that result in brandnew markets, products, and
often new businesses by acquiring new assets to develop the type of breakthrough
decisions that fall in this category.
a. True
b. False
A person whose behavior illustrates the deontological theory of ethics would
___________________.
a. choose an alternative that adheres to laws and standards set by the government
without considering his or her obligations toward society
b. adopt an approach that is concerned with the welfare of others
c. choose an alternative based on a comparison of his or her current ethical dilemma
with examples of similar ethical dilemmas
d. stick to his or her obligations when stuck in an ethical dilemma because doing one’s
duty is what is considered ethically correct
Prospective home buyers perceive houses as a heterogeneous shopping product,
therefore they find it harder to compare homogeneous shopping products because the
prices, quality, and features of such products are similar.
a. True
b. False
Zinta Co. has launched a new laptop computer with a bigger monitor and big lettered
keyboard. The company uses this model to target senior communities and provides
discounts. The company targets thirteen cities in the United States with high
populations of seniors. This scenario exemplifies which type of market segmentation?
a. Geodemographic segmentation
b. Psychographic segmentation
c. Benefit segmentation
d. Usagerate segmentation
Which of the following is a characteristic of products produced by multinational
corporations?
a. Products are developed for global distribution and then tweaked to meet unique
market requirements whenever possible.
b. A firm that starts with a local strategy is better able to develop global products.
c. Products are inadequately distributed in local markets.
d. Test marketing is not required for products developed by multinational firms.
Many businesses have found that it is more cost effective to focus only on attracting
new customers than working hard to keep the ones they already have.
a. True
b. False
A vehicle manufacturer makes base models using a largescale production process. It
also partners with small companies that help customize its vehicles, thus offering a wide
range of packages involving a variety of chassis colors, upholstery designs, music
systems, GPS devices, and passenger safety options. The company’s approach to its
service offering is an example of ______.
a. mass customization
b. mass standardization
c. customization
d. standardization
When evaluating service quality, which statement is true of reliability?
a. It involves being caring and paying individualized attention to customers.
b. It involves providing prompt service to customers.
c. It is performing the service right the first time.
d. It refers to the knowledge and courtesy of employees.
A person’s values determine what is important and not important, which actions to take
or not to take, and how one behaves in social situations.
a. True
b. False
Which of the following core values strongly influences the attitudes and lifestyles of
Americans?
a. Idealism
b. Selfsufficiency
c. Nonconformity
d. Integrity
An arrangement in which the manufacturer and the retailer split the costs of advertising
the manufacturer’s brand is called ______________advertising.
a. cooperative
b. pioneer
c. competitive
d. institutional
Which of the following statements is true of the supplier relationship management
process?
a. It enables firms to act as leaders in protecting the natural environment.
b. It incorporates features and costcutting measures into final products.
c. It enables suppliers and business units to operate with limited or no interaction.
d. It provides structural support for developing and maintaining relationships with
suppliers.
Which of the following statements is true of an organization’s product mix?
a. Firms widen their product mix to capitalize on established reputations.
b. A wide product mix decreases sales and profitmaking potential.
c. A wide product mix means that the product line is deep.
d. All product items in a product mix follow a standard marketing strategy.
Which of the following statements is true of the marketing strategies of nonprofit
organizations?
a. They can measure their success or failure in strictly financial terms.
b. They seek to make a profit for redistribution to owners or shareholders.
c. The presence of a financial “bottom line” makes it easy for nonprofit managers to
make decisions.
d. Their focus is often on generating enough funds to cover expenses.
Predatory pricing is illegal under the RobinsonPatman Act of 1936.
a. True
b. False
Which of the following is the function of packaging?
a. Containing and protecting products
b. Promoting products
c. Facilitating storage and recycling
d. All of the above are correct.
Customers looking for luxury want products that exhibit careful craftsmanship, timeless
design, prestige, and exclusivity. This type of market is segmented by ethnicity.
a. True
b. False
Which of the following statements is true of an implied warranty?
a. It prohibits other firms from using a brand or part of a brand without permission.
b. It gives the impression that a product is environmentally friendly.
c. It ranges from simple statements to extensive documents written in technical
language.
d. It comes with the sale of every product under the Uniform Commercial Code.
Which of the following defines the key goal of an SBU that is a very successful cash
cow?
a. Hold
b. Build
c. Harvest
d. Divest