Patronageoriented pricing tries to maximize the number of services used by a consumer.
a. True
b. False
Which of the following represents the thinking behind supercenters?
a. They offer a nearly complete selection of merchandise within a single category and
use selfservice, discount prices, high volume, and high turnover to their advantage.
b. They sell overruns, irregular merchandise, and/or overstocks purchased from
manufacturers at or below cost.
c. They sell items from a fullline discount stock to customers who are drawn in
primarily by the food on sale.
d. They specialize in a single line of merchandise and become the dominant retailer in
its category.
Which statement about the pyramid of corporate social responsibility is true?
a. Philanthropy should be the most important function of a corporation.
b. Ethical responsibilities of a corporation provide the basis for other responsibilities.
c. If a company does not make a profit, then the other 3 responsibilities legal, ethical
and philanthropic are moot.
d. Social responsibility efforts should be focused on the external and not the internal
stakeholders of a corporation.
In which case is personal selling more effective or economic than advertising and sales
promotion?
a. Customers are geographically dispersed.
b. The product has a low value.
c. The product is easy to understand.
d. There are few customers.
Determining sales goals is part of effective sales management. A statement of a
salesperson’s sales goals, usually based on sales volume, is called a(n) _________.
a. quota
b. referral
c. sales plan
d. offer
Global competition increases as the U.S. population decreases.
a. True
b. False
Which of the following refers to a group of closely related product items?
a. Product line
b. Product mix
c. Product mix width
d. Product line depth
Which of the following statements is true of ondemand marketing?
a. It requires firms to focus on the internal rather than the external business
environment.
b. It places maximum emphasis on aggressive personal selling strategies.
c. It is aimed at enhancing customer relationships.
d. It is the most important strategy used by salesoriented firms.
Drop and shop programs use convenience to get consumers to recycle products like
batteries or cell phones during a regular trip to the store.
a. True
b. False
In which of the following cases is the elasticity of demand expected to be high?
a. Substitutes are available.
b. A product price is significantly low relative to purchasing power.
c. Products are not durable.
d. The product has only one use.
Elsem Foods Inc. is a company that manufactures packaged food. It sells several
varieties of packaged food such as chips, cupcakes, candies, crackers, fruit juices, and
carbonated drinks. It receives its largest profit from its newly introduced line of tropical
fruit juices that are available in different flavors, such as orange, apple, lychee, and
cranberry. Given this information, which of the following is a product item of Elsem
Foods?
a. Chips
b. Candies
c. Orange juice
d. Carbonated drinks
Felicita Brewery wants to add brown ale beer to its existing list of alcoholic products.
The questions the company currently is asking itself are: What is the likely demand for
the product? What impact would the new product probably have on total sales, profits,
market share, and return on investment? How would the introduction of the product
affect existing products? At what stage of newproduct development process is this
company?
a. Developmental stage
b. Business analysis stage
c. Marketing stage
d. Screening stage
Caroline, the manager of a jewelry store, conducts statewide market research and
collects data on customer preferences for various jewelry items. Based on her findings,
she has to create a forecast of the items that customers are most likely to purchase. In
this scenario, Caroline will most likely be performing the _____ of marketing research.
a. prescriptive role
b. predictive role
c. descriptive role
d. diagnostic role
Joint ventures prevent a local firm from acquiring managerial skills and new
technology.
a. True
b. False
The underlying elements of a society that distinguishes it from other cultural groups
are:
a. social class, behavior, food habits, and laws.
b. values, language, myths, customs, rituals, and laws.
c. race, genes, personal choices, and eating habits.
d. behavior, weather social class, dress choices, and genes.
The owners of Vogue, an apparel store based in California, want to expand the store’s
business all over the world. In this case, which of the following strategies can help the
owners of Vogue achieve their objectives?
a. Opening an ecommerce site
b. Standardizing the size of apparel
c. Acting as an export broker
d. vending in physical stores.
When following up on a marketing plan, the _____ process provides the mechanisms
for evaluating marketing results in light of the plan’s objectives and for correcting
actions that do not help the organization reach those objectives within budget
guidelines.
a. implementation
b. control
c. environmental scanning
d. postaudit
Intensive distribution is a form of distribution that establishes one or a few dealers
within a given area.
a. True
b. False
In the context of demand management, merging tactical and strategic planning methods
across functional areas of the business to align production with demand is known as
______ planning.
a. sales and operations
b. demand and order fulfillment
c. material and service
d. technology and integration
When considering the range of involvement that the target audience/customers have
with a product, how do privatesector service organizations (business) and nonprofit
organizations generally compare?
a. The range is much narrower for nonprofit organizations.
b. The range is much narrower for business service organizations.
c. The range is more or less equal in the two cases.
d. The range is highly unpredictable in both cases.
Applying employees’ collaborative efforts to accomplish common organizational
objectives is known as ______.
a. training
b. empowerment
c. teamwork
d. relationship management
The total revenue of a firm is calculated by multiplying the number of units sold by the
___________ of each unit.
a. profit margin
b. price
c. discount
d. overhead cost
Marketing costs are high in the introductory stage of the product life cycle because
a. product design changes become stylistic rather than functional.
b. high dealer margins are often needed to obtain adequate distribution.
c. manufacturers scramble to sign up dealers and distributors.
d. emphasis is given to communicating the differences among brands in the market.
____________ is an interview question that asks the respondent to make a selection
from a limited list of responses.
a. Openended question
b. Closedended question
c. Scaledresponse question
d. Focused research question
Unlike nonstore retailing, instore retailing enables customers to shop without visiting a
physical store location.
a. True
b. False
An organization’s product mix includes all the products it sells.
a. True
b. False
According to which of the following ethical theories does a person choose to act in a
way that benefits the most people, regardless of law or personal feelings?
a. Act utilitarianism
b. Rule utilitarianism
c. Moral relativism
d. Virtue ethics
The NAICS (North American Industry Classification System) is a valuable tool for
business marketers engaged in analyzing, segmenting, and targeting markets in which
each classification group is relatively homogenous in terms of _______.
a. location, type of product manufactured and problems faced
b. raw materials required, components used, manufacturing process employed, and
problems faced
c. location of the firm, suppliers of raw materials, output of the company, problems
faced
d. raw materials, location, product manufactured, manufacturing process applied
Cleanz Inc., a toiletries manufacturing firm, has launched a new range of organic
sanitizing wipes. It wants to test its consumers’ reactions to this new product in an
economical way. Therefore, Cleanz creates flyers that advertise several of its products
along with the new product and send them to a few selected members of the target
market. Besides this, it also takes the members to a mock shop and monitors their
shopping behavior. In this scenario, Cleanz is using _____.
a. scannerbased research testing
b. simulated market testing
c. virtual test marketing
d. traditional test marketing
When examining an organization’s internal strengths and weaknesses during SWOT
analysis, the marketing manager may not focus on organizational resources such as
production costs, marketing skills, financial resources, company or brand image,
employee capabilities, or available technology.
a. True
b. False
A common misconception surrounding both environmental and social sustainability is
that their practice increases supply chain costs disproportionately, and therefore should
be enacted only when business leaders are willing to act altruistically or for the
purposes of good public relations.
a. True
b. False
Which of the following statements is true of the development stage of the newproduct
development process?
a. Costs decrease dramatically once a product idea enters the development stage.
b. The development stage involves evaluating a newproduct idea before creating a
prototype.
c. Simultaneous product development increases the time spent in the development
process.
d. The development stage involves examining the feasibility of manufacturing a product
at an acceptable cost.
Fournotts Corp. manufactures a special kind of filter that can purify water quickly, but
consumers in the market are not aware of the product’s existence. In this case, which of
the following strategies will increase the sales of the filter?
a. Using statusconscious advertising
b. Using direct response advertising
c. Using selective advertising
d. Using customergenerated advertising
It is during the product development stage that one asks questions such as: Would
current customers benefit from the product? What new facilities, if any, would be
needed? How might competitors respond? What is the risk of failure? Is the company
willing to take the risk?
a. True
b. False
Senior citizen and student discounts at movie theaters and restaurants are examples of
pricing that is ______.
a. patronageoriented, not operationsoriented
b. operationsoriented, not revenueoriented
c. both revenueoriented and patronageoriented
d. both operationsoriented and patronageoriented
