The producer and the final consumer are part of every type of channel of distribution.
ABC Interior Designs wants to collect research data about which areas of the store
attract the most customer attention through video recording devices placed throughout
the store. This is an example of mechanical observation.
Households making $100,000 or more represent only 20 percent of U.S. households but
control more than half of all income earned in the United States.
A convergence is a type of discontinuous innovation.
Many not-for-profit organizations use marketing principles.
Within the context of the marketing mix, place refers to the availability of the product
to the customer at the desired time and location.
The marketing intelligence system uses corporate espionage to gather information about
competitors.
After segmentation, the customer group selected by a firm is referred to as the target
market.
The effectiveness of product strategies depends on the managers who carry them out.
Marketers should consider the packaging of other brands within the category when
designing their brand’s packaging.
In limited-service retail operations, such as specialty stores and first-class department
stores, salespeople assist customers in every phase of the shopping process.
Exchanges that occur in the grey market are illegal.
Depending upon the organization, product management may include brand managers,
product category managers, and market managers.
Because there is substantial evidence that subliminal advertising is effective, many
media companies reject any advertising that contains subliminal messages.
Virtual goods are tangible products that can be purchased for real money in virtual
worlds.
Operational plans focus on the long-term execution of the marketing plan performed by
top-level management.
Hispanic Americans are the fastest-growing minority group in the United States.
Value pricing is the opposite of cost-based pricing.
Costa Rica, the Dominican Republic, El Salvador, and several other Central American
countries formed the CAFTA economic community. This is an example of a policy of
protectionism.
Product development strategies emphasize both new products and new markets.
If the pull strategy is effective, consumers will then demand the product from channel
members, who will, in turn, demand it from producers.
One of the most thorough and complex explanations of changes in the retailing industry
is the wheel-of-retailing hypothesis.
Gross rating points (GRPs) are a measure of the quantity of media included in a given
media plan.
The marketing mix is the marketer’s strategic toolbox.
The main pursuit of the World Trade Organization (WTO) is to guarantee basic human
rights in all markets.
Marketers want to increase brand dilution, which refers to the spread of interest in and
knowledge about a brand among target consumers.
Innovators tend to be better off financially than consumers in other adopter groups.
Discount retailers such as Walmart do not sell private-label brands.
Governments use tariffs to give domestic competitors an advantage in the marketplace
by making foreign competitors’ goods more expensive.
The International Monetary Fund controls fluctuations in exchange rates in order to
prevent severe balance of payments problems.
Businesses within a purely competitive market have few opportunities to raise or lower
their prices.
When a gift shop decided to begin selling Blue Ridge pottery, it was modifying its
merchandise mix.
In the future, global deregulation will likely affect the delivery of services of banks and
other financial service industries by reducing competition.
Customer relationship management (CRM) programs can systematically track
customers’ preferences and behaviors over time.
Green marketing and sustainability are interchangeable terms describing the same
concept.
Chevrolet runs a promotion whereby consumers can redeem two free ski lift tickets at
their local dealer through a test-drive promotion. According to the communication
model, the people coming into the dealership to test-drive a vehicle are the ________.
A) encoders
B) message
C) source
D) medium
E) feedback
________ is a strategic business process that marketers use to plan, develop, execute,
and evaluate coordinated, measurable, persuasive brand communication programs over
time to targeted audiences.
A) Integrated marketing communications (IMC)
B) A push strategy
C) A pull strategy
D) Database marketing
E) Experiential marketing
When Joe’s Coffee Nook raised the price of a latte, Joe noticed a substantial change in
his daily latte sales. A price reduction caused his sales to increase. From this
information, you can assume the demand for lattes is ________.
A) static
B) supply-driven
C) across-elastic
D) elastic
E) inelastic
A shoe department carries more than 55 different styles of white sandals. This is a
description of the shoe department’s ________.
A) merchandise breadth
B) retail diversity
C) merchandise depth
D) point-of-sale range
E) service assortment
Women who rent their wedding gowns instead of buying them and wearing them only
once are taking advantage of ________ utility.
A) form
B) place
C) time
D) possession
E) price
Which of the following is in place when a producer, dealer, wholesaler, retailer, or
customer interacts with more than one type of channel?
A) dual or multiple distribution system
B) intermediation
C) knowledge management
D) supply chain management
E) vertical marketing system
For the retailer, the practice of ________ results in lower total sales and, in many cases,
damaged merchandise.
A) sweethearting
B) experiential shopping
C) retail borrowing
D) off-price retailing
E) network marketing
In general, companies that focus on a triple bottom line are most likely to place a
priority on which of the following?
A) sustainability
B) the production orientation
C) the selling orientation
D) not-for-profit marketing
E) collaborative consumption
A(n) ________ provides reasons for customers to pay a premium for a firm’s products
and exhibit a strong brand preference.
A) exchange
B) differential benefit
C) industrial good
D) value chain
E) customer lifetime value
Prior to setting up its Thanksgiving Turkey Hotline, a company conducted one-on-one
discussions with a small number of new and experienced cooks to determine what type
of questions it should be prepared to answer. In research terms, this company conducted
________.
A) focus groups
B) face-to-face interviews
C) ethnographic research
D) telemarketing
E) observational research
Intensive distribution seeks many outlets in a market, while selective distribution seeks
only one outlet in a given market area.
Which of the following product offerings is intangible?
A) fish for an aquarium
B) refillable ink cartridges for a computer printer
C) a mink coat
D) a meal at a fast-food restaurant
E) a limousine ride
When General Mills urged consumers to lower their cholesterol by eating Cheerios
twice a day over the course of six weeks, the aim was to increase usage among current
customers. General Mills used a ________ strategy.
A) market development
B) product penetration
C) market penetration
D) diversification
E) product development
In recent years, airlines have used debundling strategies, charging fees for perks such as
checked baggage that had previously been included in the ticket price. This is an
example of a ________ strategy.
A) product
B) pricing
C) promotional
D) place
E) production
Jack provides heating and air conditioning equipment for office buildings. He sells
________.
A) distributive goods
B) consumer services
C) consumer goods
D) industrial goods
E) intangible goods
Which of the following statements about the break-even point is true?
A) It is used to determine how many more units need to be sold to increase market
share by a specific amount.
B) It is a technique used to calculate fixed costs.
C) It determines the amount of retained earnings a company will have during an
accounting period.
D) It is a technique marketers use to examine the relationship between supply and
demand.
E) It is calculated using contribution per unit costs and total fixed costs.
A group of social network users who share an attachment to a specific product is called
a(n) ________.
A) avatar
B) virtual world
C) brand community
D) groundswell
E) microblog
A business plan ________.
A) is a document that outlines marketing strategies step by step
B) identifies how a company will measure and control specific marketing strategies
C) is another name for a marketing plan
D) includes the decisions that guide the entire organization or its business units
E) is another name for a SWOT analysis
________ often influence others’ attitudes or behaviors because others perceive them as
possessing expertise about a product.
A) Opinion leaders
B) Status symbols
C) Heuristics
D) Reference groups
E) Social classes
Through a process of ________, a company can identify a social media platform user’s
attitude toward a brand.
A) data warehousing
B) sentiment analysis
C) search engine optimization
D) predictive analytics
E) reality mining
Every society has a set of deeply held beliefs about right and wrong ways to live, which
are referred to as ________.
A) demographics
B) social norms
C) cultural dimensions
D) cultural values
E) customs
Diffusion refers to ________.
A) how promotion is used to support products throughout their product life cycle
B) the second stage of the market segmentation process
C) the methodology for evaluating new product ideas
D) how the use of a product spreads throughout a population
E) the selection of opinion leaders to encourage product acceptance
Product packaging can do all of the following EXCEPT which one?
A) protect the product
B) provide service
C) communicate brand personality
D) make the product easier to store
E) create a competitive advantage
By using ________, a company deliberately sets a low price with the intention of
driving its competition out of business.
A) price-fixing
B) price lining
C) surge pricing
D) predatory pricing
E) loss leader pricing
When a firm offers one or more products to a single segment, it is using a ________
strategy.
A) fragmented
B) homogeneous
C) custom marketing
D) mass customization
E) concentrated targeting
Which of the following types of retailers place the most emphasis on salespeople
assisting customers throughout the purchase process?
A) limited-service retailers
B) full-service retailers
C) self-service retailers
D) discount retailers
E) off-price retailers
Through ________, one firm sells another firm the right to use a legally protected brand
name for a specific purpose for a specific period of time.
A) umbrella branding
B) store branding
C) franchising
D) licensing
E) trademarking
A city hired a research company to survey spring break vacationers to learn about this
market. One of the questions asked was, “If you were able to hang out on the beach
with any celebrity, who would she or he be?” This type of question is a means for
gathering ________.
A) qualitative data
B) ethnographic observations
C) cross-tabulated data
D) quantitative data
E) longitudinal data
In a market with ________, the market consists of many buyers and a few sellers who
are likely to have similar pricing.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) vertical integration
E) inflation
Opinion Research Corporation and Experian Simmons are two companies that provide
________.
A) primary data
B) secondary data
C) reality mining data
D) causal research data
E) ethnographic data
Which of the following are manufacturer-owned facilities that carry inventory and
provide sales and services to customers?
A) sales offices
B) sales branches
C) manufacturers’ showrooms
D) manufacturers’ offices
E) merchandise brokerages
Marketers may conduct a massive advertising campaign, called a ________, to educate
consumers about a new product.
A) media blitz
B) diffusion network
C) simulated market test
D) test market
E) tipping point
When a customer feels regret after purchasing a product, she is experiencing ________.
A) affect
B) a heuristic
C) an operant reaction
D) cognitive dissonance
E) a conditioned response
________ carry a narrow assortment of product lines with deep assortments within
those lines.
A) Supermarkets
B) Specialty stores
C) Convenience stores
D) Discount stores
E) Off-price stores
Several years ago, the Paradise Surf Shop was the only surf-gear store catering to
women. It carried everything the serious female surfer needed to ride the waves. In
terms of its merchandise assortment, it had a ________ assortment.
A) shallow and deep
B) narrow and deep
C) shallow and broad
D) broad and deep
E) shallow and narrow
How would an ice cream vendor create the four types of utility?
Explain the buzz building form of viral marketing. What are the aims of viral
marketing, and how are they accomplished? Give an example of a successful viral
marketing campaign.
What are prototypes? During which phase of the new-product-development process
would a company develop prototypes?
A sales manager at ABC Services Inc. was required to track important marketing
metrics each quarter. Give two examples of the marketing metrics this sales manager
might report.
When might a marketer be most likely to use informative advertising?
The Federal Trade Commission (FTC) ordered KFC to stop running ads with false
claims that its fried chicken is compatible with certain weight loss programs. What law
gives the FTC the authority to stop KFC’s marketing program and what law was KFC
violating?
Explain the follow-up step of the creative selling process.
What are two ways the airline industry can benefit from the implementation of CRM
systems? Explain your answer.
Explain why effective communication occurs only when the source and the receiver
have a mutual frame of reference.
A large chain amusement park sells tickets at its main gate for guests who are visiting
the park for just that one day. The park also sells seasonal passes that can only be used
on weekdays. What market segmentation is being implemented by the amusement park?
Many students in a high school wear the same style of shoes to school. From the
marketing perspective, why are these students conforming to a similar style?
What is payment pricing and why is it effective?
What are the disadvantages and advantages associated with test marketing?
Explain why correctly segmenting and then targeting consumers will help a company
target its marketing dollars more effectively.
Describe public relations and four objectives it is often used to achieve.
Compare and contrast the three types of convenience products.
Compare and contrast specialty stores and convenience stores.
Compare and contrast strategic planning and operational planning.
What is the difference in the qualitative versus quantitative approach to research?
What is a market segment? Explain how an automaker might appeal to different market
segments.
