What is a disadvantage of a viral success?
A) Many people will see the marketing message.
B) The cost per exposure is relatively low.
C) Word-of-mouth is strong.
D) Publicity is always good.
E) Marketers have little control over where the message ends up.
In 1994, the North American Free Trade Agreement (NAFTA) established a free trade
zone among the United States and Costa Rica, the Dominican Republic, El Salvador,
Guatemala, Honduras, and Nicaragua.
A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output,
and break-even volume of 50,000 units. What should the manufacturer’s unit cost be in
order to break even?
A) $10
B) $12
C) $14
D) $16
E) $20
Marketers can expand markets by discovering and promoting ________.
A) subliminal points of interest
B) the deficiencies of competitors
C) subtle advantages of the product
D) new uses of the product
E) green technologies
Under the ________ concept, a company’s marketing should support the best long-run
performance of the marketing system.
A) corporate social responsibility
B) direct marketing
C) sustainable marketing
D) free enterprise system
E) strategic planning
Which of the following are value discipline strategies?
A) operational excellence, overall cost leadership, and differentiation
B) customer intimacy, operational excellence, and focus
C) employee relations, product leadership, and overall cost leadership
D) product leadership, customer intimacy, and focus
E) operational excellence, customer intimacy, and product leadership
Joanna uses her smartphone to accomplish many tasks everyday. She is also an avid
shopper. Which online marketing tool will benefit Joanna the most to help her shop?
A) e-mail messages from sites to which she subscribes
B) banking app for her bank
C) instant deals and digital coupons
D) YouTube video
E) Facebook friends
Social media are all of the following EXCEPT ________.
A) expensive
B) interactive
C) personal
D) targeted
E) timely
Teenagers are expected to respond in a similar way to a set of marketing efforts. In
other words, this group represents a ________.
A) channel intermediary
B) line extension
C) market segment
D) product attribute
E) brand personality
Which stage in the product life cycle is characterized by rapid market acceptance and
increasing profits?
A) introduction
B) maturity
C) growth
D) decline
E) product development
Some companies obtain the rights to use the names or symbols previously created by
other manufacturers for a fee. This process is known as ________.
A) multibranding
B) positioning
C) segmenting
D) co-branding
E) licensing
Which of the following refers to the process of dividing a market into distinct groups of
buyers with different needs, characteristics, or behaviors?
A) market diversification
B) market segmentation
C) downsizing
D) customer relationship management
E) prospecting
Gilron Holidays runs a premium membership club that caters to customers whose
annual salary exceeds $100,000. Members of this club are offered seasonal discounts at
select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n)
________ segmentation approach.
A) gender
B) benefit
C) occasion
D) income
E) geographic
Apex describes its clothing line as, “Elegance and attitude, now as one. For the daily
office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get
noticed.” This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification
Which of the following generational groups is most comfortable with digital technology
and embraces that technology?
A) Generation X
B) Millennials
C) Baby Boomers
D) Silent Generation
E) Lost Generation
A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and
attracts customers from a wide area.
A) community shopping center
B) neighborhood shopping center
C) central business district
D) regional shopping center
E) strip mall
________ includes all activities involved in selling goods and services to those buying
for resale or business use.
A) Wholesaling
B) Retailing
C) Franchising
D) Discounting
E) Showrooming
Which of the following is true with regard to personal selling?
A) Personal selling entails personal presentations by a firm’s sales force for the purpose
of making sales and building customer relationships.
B) Personal selling involves making personal requests to potential buyers to enter into
short-term business relationships with firms.
C) Personal selling distances the buyer from the seller and does not focus on building
enduring relationships.
D) An outside sales force is not involved in personal selling.
E) Personal selling is a relatively new profession.
Which of the following is true of optional-product pricing?
A) It involves capitalizing on low value by-products.
B) It involves pricing products that can be added to the base product.
C) It is used to price a company’s main product.
D) It involves setting geographically specific prices.
E) It is used to price products that must be used with the company’s main product.
After determining its advertising objectives, a company’s next step in developing an
advertising program is to ________.
A) set an advertising budget
B) determine the media vehicle
C) use cash rebate offers
D) evaluate the advertising campaign
E) develop a message strategy
The long-run average cost (LRAC) curve indicates the ________.
A) per unit cost of output in the long run
B) projected total production costs of competitors
C) variable costs incurred by a firm over time
D) fixed costs incurred by a firm over the long term
E) number of units the market will buy in a given time period, at different prices that
might be charged
Refer to the scenario below to answer the following question(s).
Most clients of Second Avenue have learned about the store through word-of-mouth
communication. This small retailer of quality secondhand children’s clothing thrives on
the sale of a vast inventory of children’s clothing placed on consignment. “Because
small children grow so quickly,” Second Avenue’s owner commented, “they often
outgrow many of their clothes before they’ve hardly been worn!”
Second Avenue provides a way for people to sell their children’s clothing, earn a few
dollars, and buy the next larger size. “We’re extremely picky about the condition of the
clothing we stock,” the owner stated, “but we sell most items at a 60-percent discount.”
Second Avenue has just developed a 30-second television ad that features three different
shoppers enthusiastically shopping in the store and appreciating its products. This ad
uses the ________ execution style.
A) slice of life
B) technical expertise
C) personality symbol
D) fantasy
E) image
Each department in a company that carries out value-creating activities can be thought
of as a link in the company’s ________.
A) channel of intermediaries
B) external value stream
C) demand chain
D) internal value chain
E) supplier chain
A successful CRM program is expected to help a company achieve all of the following
EXCEPT ________.
A) provide higher levels of customer service
B) develop deeper customer relationships
C) create offers tailored to meet specific customer requirements
D) understand the competition better
E) pinpoint high-value customers and cross-sell products
Among the generational groups in U.S population, the ________ are still the wealthiest
generation in U.S. history.
A) baby boomers
B) Generation Xers
C) Millennials
D) echo boomers
E) Silent Generation
Product attributes include all of the following EXCEPT ________.
A) style
B) design
C) price
D) features
E) quality
Some products that have entered the decline stage have been cycled back to the growth
stage through ________.
A) repositioning
B) harvesting
C) maintaining
D) pruning
E) expanding
All of the following are traits that buyers dislike in salespeople EXCEPT ________.
A) disorganization
B) tardiness
C) empathy
D) being overly talkative
E) deceit
Go Zone plans to introduce four tablet models over the next year. These models range
from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The
more features a model has, the more expensive it is. What pricing strategy is Tone Zone
using for its range of tablets?
A) product line pricing
B) product bundle pricing
C) captive product pricing
D) by-product pricing
E) optional product pricing
Market niching is profitable because the company ________.
A) copies or improves on the leader’s products and programs, usually with much less
investment
B) bears the cost of developing new products and markets, expanding distribution, and
educating the market
C) knows the needs of the target customer segment better than other firms that casually
attempt to sell to the same segment
D) either keeps its manufacturing costs and prices low or its product quality and
services high
E) can achieve economies of scale much faster by selling the same product to the global
market
A salesperson of a manufacturing company has qualified a number of leads. Which of
the following is most likely the next step in the selling process?
A) calling on all the prospects one by one
B) closing the deal with the most promising prospect
C) learning as much as possible about the qualified prospects
D) handling all objections raised by the prospects
E) narrating the “value story” to the buyer
Rob has been asked by his manager to identify a group of potential customers who
would respond in a similar way to a given set of marketing efforts. In this instance, Rob
has been asked to identify a ________.
A) new product
B) market segment
C) marketing intermediary
D) brand
E) product line
Competitive parity and task methods are considered when making decisions about
________.
A) sales objectives
B) budget
C) message structure
D) media selection
E) message effectiveness
Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed
countries with the goal of gaining mass-market share quickly. Which of the following
pricing strategies would help the firm meet its goal?
A) market-skimming pricing
B) market-penetration pricing
C) market-segmentation pricing
D) cost-plus pricing
E) captive-product pricing
A(n) ________ is a limit on the amount of goods that an importing country will accept
in certain product categories.
A) embargo
B) tariff
C) benchmark
D) quota
E) exchange control