Fifty percent of the market is in the hands of Company A, 30 percent is in the hands of
Company B, 15 percent is in the hands of Company C, and the remaining 5 percent is in
the hands of Company D. Based on these hypothetical numbers, Company D is the
market ________.
A) leader
B) challenger
C) follower
D) nicher
E) maven
Which of the following best explains why public relations is often overlooked as a tool
for supporting product marketing objectives?
A) Public relations departments are typically large divisions within corporations.
B) The time and costs associated with public relations prohibit its extensive use.
C) Public relations specialists lack the skills necessary to work with marketing experts.
D) Many public relations professionals see their jobs as communicating, not brand
building.
E) The public relations department handles stockholders and legislators but not
employees.
________ occurs when a seller states price savings that are not actually available to
consumers.
A) Comparative pricing
B) Scanner fraud
C) Deceptive pricing
D) Market skimming
E) Price collusion
Retailers connect brands with consumers in the ________ phases of the buying process.
A) need identification
B) evaluation of alternatives
C) final
D) information gathering
E) post-purchase
Which of the following is NOT true of public policies and pricing?
A) Companies are free to charge whatever prices they wish.
B) Federal, state, and local laws govern the rules of fair play in pricing.
C) Deceptive pricing is not permitted.
D) Companies must consider broader societal pricing concerns.
E) Regulations exist to control predatory pricing.
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
Most companies are started by individuals who live by their wits. They visualize an
opportunity, take risks, and knock on every door to gain attention. Which of the
following stages in marketing strategy is being illustrated here?
A) exponential marketing
B) formulated marketing
C) entrepreneurial marketing
D) affinity marketing
E) ambush marketing
Consumer advocates call for additional consumer rights, including ________.
A) the right to be protected from unwanted marketing messages
B) the right to be well informed about important product aspects
C) the right not to pay any taxes included in the final price
D) the right to resell the product
E) the right to exchange the product if it is of the wrong size or style
________ is the act of obtaining a desired object from someone by offering something
in return.
A) Valuation
B) Exchange
C) Market offering
D) Confiscation
E) Donation
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing,
design, production, and finance work in cross-functional groups to save time and
money in the new product development process. Fantastic Flavors uses a ________
approach.
A) customer-centered new product development
B) sequential product development
C) team-based new product development
D) heuristic
E) functional
________ refers to measuring and evaluating the results of marketing strategies and
plans and taking corrective action to ensure that the objectives are achieved.
A) Marketing control
B) Marketing implementation
C) Satisficing
D) Prospecting
E) Benchmarking
Which consumer group tends to show more brand loyalty and makes shopping a family
event, with children having a big say in the purchase decision?
A) Hispanic Americans
B) African Americans
C) Arab Americans
D) working class consumers
E) middle class consumers
In return for participating in Honda advertising and sales support programs, Honda
dealerships are rewarded with payments or price reductions, which are known as
________.
A) seasonal discounts
B) functional allowances
C) cash discounts
D) promotional allowances
E) trade-in allowances
Many companies use RFID product labels on their goods, which exemplifies the
________ environment in business.
A) natural
B) political
C) economic
D) demographic
E) technological
The product life cycle presents challenges. Which of the following is LEAST likely to
require a company to adapt its marketing strategies?
A) developments in technology
B) decreased manufacturing costs
C) competition
D) changing tastes of consumers
E) aging of products
A(n) ________ does not take title to goods and represents buyers or sellers on a more
permanent basis than a broker.
A) full-service wholesaler
B) industrial distributor
C) agent
D) retailer
E) cash-and-carry wholesaler
Which of the following is true of price skimming?
A) It is effective in situations in which competitors are able to undercut prices easily.
B) It can be profitably used when the product’s quality and image support its price.
C) It involves underpricing products so that companies make larger sales.
D) It is ineffective in situations in which competitors are unable to enter the market
easily.
E) It leads to a situation in which the company completes more, though less profitable,
sales.
Redrunners Inc., a manufacturer of sports merchandise, is gathering customer opinions
about the firm’s new sports shoe line. A team of researchers in the company invited
eight regular customers to talk about the new line of shoes, asking why they chose to
buy the shoe and what they disliked most about its design. A moderator was present to
monitor the discussion. Which of the following types of contact methods is Redrunners
using?
A) individual interviewing
B) mail questionnaire
C) group interviewing
D) mass survey
E) mall intercept
The perceived value of different product offers can be reasonably assessed by
________.
A) conducting a SWOT analysis
B) preparing demand curves
C) conducting surveys and experiments
D) collecting data about competitors’ offers
E) setting a benchmark for product quality
Most companies are unlikely to intentionally provide shoddy, harmful, or unsafe
products because ________.
A) they won’t face liability lawsuits and expensive awards for damages
B) they want to develop long-term relationships with their customers
C) they know that customers will shrug off errors for a while
D) they are confident they can appease consumer groups and regulators
E) it costs more to provide quality products
John’s fascination for his grandmother’s sherbet recipes inspired him to come up with a
recipe for SherBetter, a gourmet sherbet for the American market. Which of the
following stages of the new product development process does this exemplify?
A) idea screening
B) idea generation
C) concept testing
D) product development
E) product manufacturing
Which of the following uses a customer-centered “sense-and-respond” philosophy
rather than a product-centered “make-and-sell” philosophy?
A) market segmentation
B) the production concept
C) the marketing concept
D) the inside-out perspective
E) marketing myopia
Which of the following are market challenger strategies?
A) expand total market and protect market share
B) expand market share and follow closely
C) full frontal attack and indirect attack
D) follow closely and follow at a distance
E) multiple niching and quality service
Bose offers $50 cash back to customers who purchase a new speaker and send in a
proof of purchase. This is an example of a ________.
A) rebate
B) POP promotion
C) price pack
D) premium
E) sample
Which of the following statements is true of social classes?
A) Social classes are society’s temporary divisions.
B) Members of a social class have unique and distinct values, interests, and behaviors.
C) People within a social class tend to exhibit similar buying behavior.
D) Income is the single factor that determines social class.
E) Social classes universally exhibit identical product and brand preferences.
Which of the following would most likely improve coordination between marketing and
sales?
A) Salespeople should directly participate in the development of new products.
B) Salespeople should participate in marketing planning sessions by sharing firsthand
customer knowledge.
C) The sales force should strategize promotional strategies and be the primary decision
makers about marketing.
D) Marketing managers should field test new promotion strategies before the sales
team.
E) The marketing and sales departments should conduct annual job rotations.
________ is a measure of the percentage of people in a target market who are exposed
to an ad campaign during a given period of time.
A) Frequency
B) Qualitative value
C) Impact
D) Premium
E) Reach
When consumers are highly involved with an expensive, infrequent, or risky purchase
but see little difference among brands, they most likely will exhibit ________.
A) habitual buying behavior
B) complex buying behavior
C) impulse buying behavior
D) dissonance-reducing buying behavior
E) consumer capitalism
According to the text, what location does Coca-Cola consider a promising long-term
growth opportunity?
A) Russia
B) Brazil
C) China
D) Africa
E) India
Ways to avoid accusations of price gouging include ________.
A) bundling products together
B) matching competitors’ pricing
C) communications to customers explaining why prices are being increased
D) passing along increased costs
E) increase quality of the product
In a(n) ________, the vast majority of people engage in simple agriculture and consume
most of their output.
A) raw material economy
B) subsistence economy
C) industrializing economy
D) emerging economy
E) industrial economy
Which of the following groups do marketers involve for the process of concept testing
new products?
A) suppliers
B) employees
C) target consumers
D) manufacturers
E) competitors
Sears opened up department stores in Mexico and Spain, where it found qualified local
manufacturers to produce many of the products it sells. This type of joint venture is
known as ________.
A) joint ownership
B) licensing
C) management contracting
D) indirect exporting
E) contract manufacturing
