A company is guilty of ________ if the company forgets latent competitors and only
focuses on current competitors.
A) perfect competition
B) self-competition
C) Cournot competition
D) competitor backlinking
E) competitor myopia
More and more, companies are shifting their brand management focus from brand
profitability toward ________.
A) technology management
B) product management
C) customer management
D) functional management
E) geographic management
In ________, companies work together to facilitate the trading process.
A) reverse auctions
B) trading exchanges
C) procurement
D) supplier selection
E) order-routine specification
Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products
to wholesalers and individual customers. This is an example of ________.
A) sales promotion
B) personal selling
C) public relations
D) direct and digital marketing
E) advertising
Which of the following companies uses product bundle pricing?
A) Photo Genie, which sells inexpensive cameras that run only on their own, expensive,
batteries
B) Go Zone, which launched a range of tablet models, each priced according to its
features
C) Penguin’s Parlor, which offers customers a 20 percent discount on their birthdays
D) Green Thumb, which gives away free watering cans with the purchase of certain
potted plants
E) Panizza, whose combo meals are priced lower than its individual components sold
together
An attractive product idea must be developed into a ________.
A) concept alternative
B) product concept
C) brand personality
D) brand placement
E) product strategy
Which of the following is a political and legal factor that a company should consider
before deciding to enter into a new country?
A) monetary and trade regulations
B) transportation structure
C) population size and growth
D) industrial infrastructure
E) business norms and approaches
In the context of customer relationship groups, a potentially profitable and short-term
customer is referred to as a ________.
A) true friend
B) butterfly
C) stranger
D) barnacle
E) market maven
Which of the following is an accurate statement about the diversity of the American
population?
A) African Americans represent the largest non-white segment of the population.
B) More than 20 percent of the people living in the United States were born in another
country.
C) By 2050, the Asian population is estimated to remain at 4.7 percent.
D) By 2060, Hispanics are estimated to be 28 percent of the population.
E) The United States has become more of a “melting pot” than a “salad bowl.”
In which of the following steps of the selling process is a salesperson most likely to
meet the customer for the first time?
A) prospecting
B) preapproach
C) follow-up
D) approach
E) closing
Which of the following is a marketing decision that may be called into question under
the law?
A) price increases
B) scarce resources
C) excessive cost
D) dealer’s rights
E) deceptive pricing
Which of the following best supports a market-penetration strategy for Champion?
A) Production costs increase as sales volume increases.
B) It is very difficult for competitors to enter the market.
C) The cost of producing a smaller volume is negligible.
D) The quality of the products supports high initial prices.
E) The market for the products is highly price sensitive.
Which of the following refers to the total combined customer lifetime value of all of the
company’s current and potential customers?
A) share of customer
B) marketing mix
C) customer equity
D) target market
E) customer-perceived value
A pharmaceutical company in Utah recently released a new and expensive anti-ulcer
drug in the market. The company justifies the high price of the drug by claiming that it
is highly effective for treating all kinds of ulcers. The company also claims that the new
drug will help bring down the need for invasive surgeries, an additional benefit for
patients. Which of the following pricing strategies is the pharmaceutical company most
likely using in this instance?
A) target pricing
B) markup pricing
C) cost-based pricing
D) value-based pricing
E) break-even pricing
________ refer(s) to meaningful sets of marketing performance measures in a single
display used to monitor strategic marketing performance.
A) Field automation systems
B) Market segments
C) Market share
D) Marketing dashboards
E) Line extensions
________ are consumer products and services that customers usually buy frequently,
immediately, and with minimal comparison and buying effort.
A) Unsought products
B) Capital items
C) Shopping products
D) Convenience products
E) Supplies and repair services
Mission statements should be defined in terms of ________.
A) the advantages a company’s products provide
B) satisfying basic customer needs
C) the value a company’s products provide
D) the profitability of a company’s products
E) the variety they offer to a customer
The major activity in strategic planning is ________, whereby management evaluates
the products and businesses that make up the company.
A) SWOT analysis
B) benchmarking
C) business portfolio analysis
D) breakeven analysis
E) prospecting
If a consumer purchases a new flat-screen “smart” television, what is the augmented
product involved?
A) connection to the world of entertainment
B) state-of the art technology
C) slick and attractive packaging
D) brand name
E) tech support and warranty
Organizations choose to use only a few of the available online and social media. Using
multiple social media results in confused fans.
In the context of the AIO dimensions for measuring consumers’ lifestyles, “A” stands
for ________.
A) activities
B) achievements
C) admirations
D) attitudes
E) associations
A(n) ________ community is a group of nations organized to work toward common
goals in the regulation of international trade.
A) joint venture
B) strategic marketing
C) economic
D) joint-stock
E) multilateral
From the economic system’s point of view, the role of ________ is to transform the
assortments of products made by producers into the assortments wanted by consumers.
A) upstream partners
B) marketing intermediaries
C) third-party logistics
D) price consultants
E) factory supervisors
If a service employee provides the service, then the employee becomes a part of the
service. This is an example of service ________.
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity
Mercury Inc., an American multinational corporation, is currently planning to enter the
promising consumer goods market in India. The firm will most likely discover that
________ beliefs and values are more open to change in India.
A) inherited
B) secondary
C) primary
D) core
E) traditional
________ are like coupons except that the price reduction occurs after the purchase
rather than at the retail outlet.
A) Rebates
B) Promotional products
C) Premiums
D) Samples
E) Price packs
________ are retailers that offer sales assistance because they carry more shopping
goods about which customers might need information.
A) Self-service retailers
B) Full-service retailers
C) Off-price retailers
D) Limited-service retailers
E) Specialty-service retailers
Although more price-conscious than other population segments, ________ consumers
tend to be strongly motivated by quality and selection, and give importance to brands.
A) lower upper
B) African American
C) Asian American
D) Filipino
E) working class
Which of the following is a disadvantage of using direct mail as an advertising
medium?
A) low audience selectivity
B) no flexibility
C) severe ad competition
D) relatively high cost per exposure
E) lack of personalization
Lawyers, accountants, and other professionals typically price by adding a standard
markup for profit. This exemplifies ________.
A) target pricing
B) cost-plus pricing
C) value-based pricing
D) break-even pricing
E) penetration pricing
American Express will do almost anything to build long-term customer loyalty and to
capture customer lifetime value. Which of the following competitive marketing
strategies is being pursued by American Express?
A) consumer capitalism
B) customer equity
C) product differentiation
D) product leadership
E) customer intimacy
Which of the following refers to a nonprobability sample in which the researcher uses
his or her evaluation techniques to select population members who are good prospects
for accurate information?
A) quota sample
B) judgment sample
C) convenience sample
D) stratified random sample
E) simple random sample
________ can be a poor predictor of a person’s health, work or family status, needs, or
buying power.
A) Occupation
B) Education
C) Ethnicity
D) Religion
E) Age
Which of the following best describes permission-based e-mail marketing?
A) sending unsolicited, unwanted commercial e-mail messages
B) sending requests to users to join online social networking communities
C) sending e-mail pitches only to customers who “opt-in”
D) offering free promotional materials to new customers
E) gathering demographic details for customer databases
A ________ VMS consists of independent firms at different levels of production and
distribution who join together through formal agreements to obtain more economies or
sales impact than each could achieve alone.
A) corporate
B) contingency
C) contractual
D) communal
E) conventional
What is the function of a marketing information system (MIS)?
How might a consumer view a price cut?
Compare and contrast the four types of buying decision behavior exhibited by
consumers.
Why have firms adopted sales force automation systems?
What should sellers consider if they wish to avoid marketing myopia?
Briefly explain why economic communities are formed.
Briefly describe the presentation stage of the selling process.
Describe the levels of service that retailers can offer. Provide an example of each type
of retailer.
Compare the selling and marketing concepts, listing the key components of each
philosophy.
Give two examples of products for which captive product pricing might be used.
Define interactive marketing. Why is it considered an important skill for service
marketers?
Describe the major types of buying situations.
How has the direct marketing industry taken steps to address privacy and security
concerns?
Why is it important for marketers to understand cultural swings?
What is personal selling?
Explain integrated social media marketing.
How do marketers measure return on marketing investment? Why is this figure difficult
to assess?
Describe the main objectives of informative advertising.
