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
________ refers to the unique psychological characteristics that distinguish an
individual or group.
A) Attitude
B) Belief
C) Perception
D) Personality
E) Self-awareness
To take advantage of a downward-sloping experience curve, a company must do all of
the following EXCEPT ________.
A) increase the product’s price
B) be able to sell the higher volume of product
C) price its product lower
D) increase its production output
E) decrease its costs through experience gained
In the context of a company’s marketing mix, ________ includes company activities
that make the product available to target consumers.
A) position
B) place
C) price
D) promotion
E) branding
When backed by buying power, wants become ________.
A) social needs
B) demands
C) physical needs
D) self-esteem needs
E) exchanges
________ is an approach to cost reduction in which components are studied carefully to
determine if they can be redesigned, standardized, or made by less costly methods of
production.
A) Proposal solicitation
B) General needs description
C) Order-routine specification
D) Cost-benefit analysis
E) Product value analysis
Which of the following is an advantage offered by co-branding?
A) Manufacturers do not have to invest in creating their own brand names with
co-branding.
B) Co-branding allows retailers to sell exclusive products that cannot be purchased
from competitors.
C) Co-branding allows a company to expand its existing brand into a category it might
otherwise have difficulty entering alone.
D) Co-branding dilutes brand equity and increases the appeal of store brands.
E) Co-branding does not involve complex legal contracts and licenses.
Companies that pursue a clear strategy will likely perform well. Firms that do not
pursue a clear strategy are called ________.
A) jack-of-all-trades
B) middle-of-the-roaders
C) niches
D) red oceans
E) laggards
________ consists of short-term incentives to encourage the purchase of a product or
service.
A) Value selling
B) Conditional sale
C) Advertising
D) Sales promotion
E) Benchmarking
Using ________ pricing, companies are able to turn their trash into cash, allowing them
to make the price of their main product more competitive.
A) product bundle
B) optional product
C) captive product
D) by-product
E) product line
The economic environment consists of economic factors that affect ________.
A) cultural patterns of communities
B) entrepreneurial orientation of a population
C) the quality of technological innovation
D) consumer purchasing power
E) the natural environment
________ traditionally has been considered the main purchasing agent for the family in
the areas of food, household products, and clothing, although this is changing as more
work outside the home.
A) A teenager
B) The husband
C) The wife
D) The couple together
E) The parent
Which of the following is a disadvantage of adding new channels in a multichannel
distribution system?
A) decreasing complexity of markets
B) decreasing control over the system
C) reducing opportunities for franchising
D) lowering sales and market coverage
E) minimizing publicity needs
A marketer wanting to determine business buyer behavior is most likely to ask which of
the following questions?
A) Are buyers sensitive toward price changes in consumer markets?
B) What are the major influences on buyers?
C) Are niche markets more profitable than mass markets?
D) How do interpersonal factors affect organizational performance?
E) Is the role of gatekeepers relevant in the international business environment?
For international researchers, ________ is the most obvious obstacle.
A) language
B) technology
C) infrastructure
D) motivation
E) political risk
In the communication process, an actual HP printer/fax machine advertisement would
be considered ________.
A) encoding
B) decoding
C) the product
D) the message
E) the medium
Countries with ________ economies consist mostly of households with very low family
incomes.
A) industrial
B) industrializing
C) raw material exporting
D) emerging
E) subsistence
A competitor analysis requires the assessment of all of the following EXCEPT the
competitors’ ________.
A) objectives
B) organizational hierarchy
C) strategies
D) strengths and weaknesses
E) reaction patterns
________ involves actually distinguishing the firm’s market offering to create superior
customer value.
A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting
Which of the following does NOT characterize international trade in the past 30 years?
A) The number of multinational corporations has more than doubled.
B) Over 40 percent of the largest economies in the world are corporations.
C) Trade value of products and services grew even during the recession.
D) U.S. companies have long been successful at international marketing.
E) Home markets are just as rich in opportunity as foreign markets.
Refer to the scenario below to answer the following question(s).
John Mayes opened Sparkle Janitorial in 2005. John began his business by acquiring
two contracts for office cleaning services from two local manufacturing facilities. For
two years, John and his wife, Barb, performed the cleaning services alone. After
acquiring three additional cleaning contracts in 2007, John hired two employees. “Up to
that point, we had room to grow but we really had no advertising plan,” John stated.
“We were relying mostly on word-of-mouth.”
By 2010, Barb hired another two full-time employees to begin Sparkle’s new endeavor:
carpet cleaning in homes and offices. “Competition was getting tough for both of our
services at that point,” Barb added. “We ran a local radio spot three times each week.
Then we had an advertiser print coupons on placemats. That gave us a little more
exposure.”
John and Barb Mayes admit that they did not realize the value of a sound promotional
plan earlier. “We wish we would have put together something catchy with a jingle long
before now,” they said.
In a recent radio spot, John and Barb gave a quick explanation of Sparkle’s cleaning
process and a description of the value consumers receive for their money. This is an
example of a(n) ________ appeal.
A) emotional
B) standard
C) rational
D) moral
E) social
Which of the following is true with regard to gathering secondary data?
A) Gathering secondary data involves costly fees to government agencies.
B) Commercial online databases contain primary rather than secondary data.
C) Internet search engines can be useful sources of relevant secondary data.
D) It is illegal for firms to purchase secondary data from outside suppliers.
E) Secondary data eliminates the need for primary data in most cases.
________ segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses concerning a product.
A) Behavioral
B) Psychographic
C) Age and life cycle
D) Gender
E) Geographic
Johnson Business Solutions maintains one sales force for its copy machines and a
separate sales force for its computer systems. Johnson Business Solutions utilizes a
________.
A) product sales force structure
B) customer sales force structure
C) territorial sales force structure
D) digital marketing system
E) geographical operations system
The ________ environment consists of institutions and other forces that affect a
society’s basic values, perceptions, preferences, and behaviors.
A) social
B) cultural
C) political
D) physical
E) natural
In intermodal transportation, which of the following describes the use of both rail and
trucks for transportation?
A) fishyback
B) drawbar
C) trainship
D) piggyback
E) airtruck
Marketers can group people in a number of ways, including by birth date. However, the
following combination of groups has proven to be more effective: ________.
A) income, lifestyle, life stage
B) profession, common values they seek in products they buy, lifestyle
C) lifestyle, life stage, common values they seek in products they buy
D) place of residence, life stage, lifestyle
E) race or nationality, lifestyle, common values they seek in products they buy
Which of the following involves costs that most likely occur during the
commercialization stage of new product development?
A) building or renting a manufacturing facility
B) paying target customers for product feedback
C) determining the product’s planned distribution
D) developing a prototype of the product
E) identifying target markets
Companies can identify competitors from one of two points of view: ________.
A) manufacturing or selling
B) engineering or producing
C) consumer or business
D) industry or market
E) unique or similar
Although it might seem that the market leader has the most going for it, challengers
often have what some strategists call a(n) ________. The challenger observes what has
made the leader successful and improves upon it.
A) “marketing myopia”
B) “second mover advantage”
C) “absolute advantage”
D) “blue ocean strategy”
E) “red ocean strategy”
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.
Monica Carey is a conscientious marketing manager. Sometimes it is unclear what
decisions to make when she and her staff are faced with moral dilemmas. To help them
handle such situations, Monica and other managers should create broad guidelines that
everyone in the organization must follow. Which of the following terms best describes
these guidelines?
A) corporate value statements
B) company mission statement
C) company vision statement
D) corporate marketing ethics policies
E) company financial statement
Keith, a clothing store owner, offers product suggestions to customers based on their
current purchases. Which of the following is Keith trying to increase?
A) shared value
B) share of customer
C) social responsibility
D) customer-generated marketing
E) customer loyalty
What is product position? What functions do perceptual positioning maps serve?
How has the direct marketing industry taken steps to address privacy and security
concerns?
What are the key functions that members of the marketing channel perform?
Provide an example of how a marketer uses kiosk marketing.
Give three examples of shopping products.
Compare and contrast the four types of products in the societal classification of
products. Provide examples of each.
What elements may help to create a product image?
What is an advertising objective? What are the three primary types of advertising
objectives?
When does product line stretching occur?
Explain the change in buying roles of husbands and wives due to an evolving consumer
lifestyle in the United States. Additionally, describe the effect of this change on
marketers.
Explain why a public relations campaign can be a more cost-effective option for
corporations than an advertising campaign.
How has clutter in television and other advertising media created an increasingly hostile
advertising environment?
Explain how the growth of digital technology has transformed the way in which
companies conduct business today.
Explain the significance of a downward-sloping experience curve.
Briefly describe geographic segmentation.
What is the difference between core beliefs and secondary beliefs? Give an example of
each.
For what types of products might marketers use market-skimming pricing?