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Which of the following is NOT a characteristic of outdoor media?
a. Flexibility
b. High cost
c. Ability to reach a broad and diverse market
d. Promotion of convenience products and services
The big advantage of price skimming is that it typically discourages or blocks
competition from entering a market.
a. True
b. False
Opening an ecommerce site on the Internet makes it difficult for a company to gain
profit in the international marketplace.
a. True
b. False
A sales presentation is a written document that outlines how a company’s product or
service will meet or exceed the client’s needs.
a. True
b. False
During a period of low inflation, there is nothing businesses can do to increase their
profit margins.
a. True
b. False
Which of the following statements is true of business marketing?
a. It refers to the sale of goods and services for the purpose of personal consumption.
b. It deals with products that are used to facilitate an organization’s operations.
c. It has long and indirect channels of distribution.
d. It includes selling stationeries to students.
Which of the following is a miniature supermarket, carrying only a limited line of
highturnover goods?
a. Specialty discount store
b. Warehouse club
c. Department store
d. Convenience store
Diffusion Research Company specializes in conducting market research for various
firms. When it receives a new research proposal, its management first estimates the cost
of conducting the research and delivering the final research report. The management
then attempts to reduce the costs through efficient operations. In this scenario, Diffusion
Research Company has a _____ pricing objective.
a. cash maximization
b. status quo
c. salesoriented
d. profitoriented
Which of the following is true of social media?
a. Social media are a strong way to gain attention and interest in a brand.
b. If content goes viral, it can then reach a massive audience.
c. Social media are also effective at engaging customers to maintain interest in the
brand.
d. All of the above are correct.
One component of product in a marketing mix is ________.
a. sales promotion
b. the company image
c. the point of purchase
d. personal selling
When considering strategies to promote intangible services, which of the following
engages customers in postpurchase communication?
a. An airline hires a wellknown actor to endorse its services in a series of commercials.
b. An insurance company uses an umbrella as its logo to convey that its customers are
wellprotected.
c. A chartered accountant firm offers a 20 percent discount to customers who contract
its services in January.
d. A hotel sends an email survey to its guests asking them to rate the quality of service
that they received.
Which of the following companies is in the first stage of developing a global business?
a. The Footwear Corp., which manufactures shoes and boots in a small town in
Lucitona, sells its products to several countries around the world.
b. Laelle Inc. is based in Euphonia and has set up several subsidiaries to manage its
business in another country
c. Fournotts Bros., which is based in Datford, is opening a new line of business in a
neighboring country.
d. Rues and West Inc. operated in Yucatan, is operating an entire line of business in
another country.
According to Ansoff’s strategic opportunity matrix, both product development and
diversification entail the creation of new products.
a. True
b. False
The term that describes the service process that takes place when the service is directed
at a customer is called ____________________.
a. information processing
b. possession processing
c. mental stimulus processing
d. people processing
A practice in which business purchasers choose to buy from customers of their
competitors is called reciprocity.
a. True
b. False
Which of the following theories assumes that the outcomes of a current ethical dilemma
will be comparable to the outcomes of similar ethical dilemmas?
a. Casuist ethical theory
b. Act utilitarianism
c. Rule utilitarianism
d. Ethical relativism
Which of the following is true about a difference between supplies and business
services?
a. Supplies are consumable items, whereas business services are expense items.
b. Supplies are immoderate compared to other business goods, whereas business
services are economical.
c. Supplies are part of a final product, whereas business services do not become part of
a final product.
d. Supplies are custom designed for each customer, whereas business services are
normally standardized.
Thirdparty logistics companies sell logistics solutions and physical products.
a. True
b. False
Which of the following has given consumers unprecedented power to express likes and
dislikes, compare prices, find the best deals, sift through huge numbers of
recommendations, and have items delivered?
a. Social media
b. Digital technology
c. Consumerization
d. Cell phones
Which of the following statements is true of simple breakeven analysis?
a. It does not consider the selling price of a product.
b. It does not give weightage to the cost of labor.
c. It is applicable only when the demand for a product is elastic.
d. It ignores the demand for a product.
Which of the following defines revenue?
a. The price charged to customers multiplied by the number of units sold
b. Net profit after taxes divided by total assets
c. Profit minus expenses
d. Something that is given up in an exchange to acquire a good or service
Which of the following strategies in the marketing mix aims at bringing about mutually
satisfying exchanges with target markets by informing, educating, persuading, and
reminding them of the benefits of an organization or a product?
a. Promotion strategies
b. Distribution strategies
c. Pricing strategies
d. Product strategies
In the context of family life cycle segmentation, which of the following statements is
true?
a. Young divorced couples without children have the lowest purchase rate.
b. Middleaged married couples with or without children have high average purchase of
durables.
c. Young married couples with children have high liquid assets.
d. Middleaged divorced couples without dependent children are least satisfied with their
financial position.
The Internet has changed the quality of information available to make purchase
decisions.
a. True
b. False
Apps are software applications that run entirely within existing online platforms.
a. True
b. False
A company is doomed to failure in a foreign country if it _____.
a. does not understand the foreign country’s culture
b. focuses on translating product names to the foreign country’s language
c. varies its marketing mix according to the foreign customers
d. pays attention to the foreign country’s demographics
Which term refers to the difference between the value of a country’s exports and the
value of its imports over a given period?
a. Balance of trade
b. Balance of payment
c. Gross domestic product
d. Gross national product
Posting comments and ratings and reviewing products and services on blogs and forums
are activities of which category of social media users?
a. Creators
b. Critics
c. Collectors
d. Joiners
Apple saw a huge drop in the sales of its iPhone 6s when they launched the iPhone 7.
This situation exemplifies _________________, that is, when a new product cuts into
the sales of existing products within the same company.
a. cannibalization
b. positioning
c. repositioning
d. competition
Employees who like their jobs and are satisfied with the firm they work for are more
likely to deliver superior service to customers.
a. True
b. False
Melina considers herself a fashionista and would like to be perceived as more fashion
oriented than her friends and family. However, her family and friends feel she dresses
just like them. In this case, the perception of Melina’s friends and family contradicts
Melina’s _____.
a. real selfimage
b. personality
c. ideal selfimage
d. social class
