One way the Federal Trade Commission can enforce laws is by issuing a consent order
in which a firm accused of violations can agree to voluntary compliance without
admitting guilt.
a. True
b. False
Samsung is set to launch a new model of smartphones. Which of the following types of
promotion should the company use to drive initial sales for its new model?
a. Reminder advertising
b. Informative advertising
c. Persuasive advertising
d. Evaluative advertising
A social media marketing plan is important because:
a. it helps companies to generate donations or other types of funding.
b. it helps consumers to make final purchase decisions.
c. it helps companies to have full control over the content and the message received by
the audience.
d. it documents in writing the company’s goals and strategies for the SMM initiative.
Aitzen Systems sources all the required components and raw materials necessary for
making a computer system from various suppliers in the country and assembles them to
create a final product. Aitzen is engaging in multiple sourcing.
a. True
b. False
Lakeview Industries contracts with Marine Motor Distributors to sell their newly
patented outboard engine. In exchange for exclusive dealership rights, Marine Motor
has agreed to carry the full line of boating accessories offered by Lakeview. This
arrangement can be described as an example of:
a. a tying agreement.
b. predatory pricing.
c. a closed sales territory.
d. mass merchandising.
_____ gathers volunteers to try products and then relies on them to talk about their
experiences with friends and colleagues.
a. Grassroots marketing
b. Frequency marketing
c. Affinity marketing
d. Buzz marketing
When customers control the amount and type of information received from a marketer
through such channels as the Internet and virtual reality kiosks, they are engaged in:
a. personalization.
b. interactive marketing.
c. integrated marketing.
d. righttime marketing.
Successful interactive advertising adds value by offering the viewer more than just
product-related information.
a. True
b. False
You are determined to build and facilitate communication among an online community
of people who share an interest in knitting. Which of the following forms of social
media could help you accomplish these goals?
a. Internet forums
b. Blogs
c. Podcasts
d. Banner ads
e. Wikis
Adrian works with the marketing team of an automobile company. He oversees the look
and feel of the online communities that the company uses to market its products. His
role is similar to that of a social media designer.
a. True
b. False
A retailer’s merchandising strategy guides decisions regarding the items it will offer.
a. True
b. False
Relationship in which an organization provides funds or in-kind resources to an event
or activity in exchange for a direct association with that event or activity is called a(n)
_____.
a. noise
b. advertising
c. promotion
d. publicity
e. sales promotion
f. guerrilla marketing
g. posttesting
h. split runs
i. cooperative advertising
j. marketing public relations
k. media scheduling
l. pretesting
m. informative advertising
n. persuasive advertising
o. retail advertising
p. missiles
q. cross-promotion
r. interactive advertising
s. sponsorship
t. institutional marketing
The process of discussing a marketing problem with informed sources both within and
outside the firm and examining information from secondary sources is known as test
marketing.
a. True
b. False
A(n) _____ is a general guideline that reflects marketing objectives and influences
specific pricing decisions.
a. MAP
b. pricing policy
c. leader pricing strategy
d. EDLP
Firms that practice homeshoring experience the benefit of reduction in the use of energy
and other natural resources thereby decreasing their impact on the environment.
a. True
b. False
The state of North Carolina established a website where governmental departments
could invite bids from participating suppliers for supplying goods and services. This is
an example of eprocurement.
a. True
b. False
An advantage of celebrity testimonials is improved product recognition in a
promotional environment filled with hundreds of competing 15- and 30-second
commercials.
a. True
b. False
As the marketing director for a public health advocacy group, you recently obtained
approval from the board to pursue a new set of strategic objectives. Among them: to
achieve 80% community awareness of the group’s name and purpose. Now you must
turn to tactical planning. Which of the following tasks should you undertake
a. Develop a fiveyear funding allocation plan.
b. Reserve advertising space in local newspapers for the next six months.
c. Recruit an assistant to write press releases.
d. Improve the visibility of your headquarters building.
The application of electronic tools, such as email, instant messaging, and blogs, to
contemporary marketing has the potential to greatly reduce costs and increase customer
satisfaction by increasing the speed and efficiency of marketing interactions.
a. True
b. False
A _____ is a payment tied directly to the sales or profits a salesperson achieves.
a. fixed pay
b. commission
c. salary
d. periodic payment
The utility of a product or service is its:
a. wantsatisfying power.
b. reusability.
c. function as a commodity.
d. design quality.
Companies who use exaggerated claims of a product’s superiority or the use of
subjective or vague statements that may not be literally true are using _____.
a. puffery
b. candor
c. deception
d. poetic license
During the 2016 NBA Championship series featuring the Golden State Warriors and
Cleveland Cavaliers, Taco Bell utilized a creative promotion strategy by partnering with
the NBA for its “Steal a game, steal a taco” campaign whereby “Americans” could get
one free taco at Taco Bell the day following a play-off game if the road team won. This
partnership which promotes both the NBA Finals and Taco Bell is an example of
_________.
a. comarketing
b. cobranding
c. lateral partnership
d. internal partnership
Lush, a cosmetics company that makes handmade beauty products, gives its customers
a free item when they return used Lush containers. This offer is aimed at promoting
recycling of the containers. The channel used by the consumers to return used
containers is referred to as a:
a. primary channel.
b. reverse channel.
c. rudimentary channel.
d. reserve channel.
In the past, firms have viewed their suppliers as adversaries against whom they must
fiercely negotiate prices, playing one off against the other.
a. True
b. False
Which of the following industries has seen a steady growth in the United States in the
recent years with nearly 80 percent of Americans now working in it?
a. Agriculture
b. Manufacturing
c. Service
d. Automobile
Studying the underlying causes of customer defections, even partial defections, can be
useful for identifying problem areas that need attention.
a. True
b. False
A franchise is a type of contractual marketing system in which:
a. a wholesaler develops a line of private brands to be stocked by the retailers.
b. a wholesaler or dealer agrees to meet the operating requirements of a manufacturer.
c. a group of retailers establish a shared wholesaling operation to help them compete
with chains.
d. a dominant channel member exercises its power to achieve channel coordination.
A _____ partnership is a relationship in which the firm purchases goods and services
from one or more providers who meet the unique needs of the firm.
a. lateral
b. internal
c. seller
d. buyer
A probability sample constructed so that randomly selected subsamples of different
groups are represented in the total sample is known as a(n) _____ sample.
a. stratified
b. convenience
c. exclusive
d. quota
What is social media marketing? What are its essential features?
