Dynamic pricing is least prevalent online.
Open-ended questions are especially useful in exploratory research.
Consumers can easily explain what influences their purchases.
For segmented pricing to be an effective strategy, prices should reflect real differences
in customers’ perceived value.
Markup pricing is used when a firm tries to determine the price at which it will break
even or make the target return it is seeking.
A company introducing a product that is similar to its competitors’ product will do a
complete test market to gain maximum information before product introduction.
Early adopters are opinion leaders in their communities. They adopt new ideas early but
carefully.
Using a segmented marketing strategy, a firm might decide to ignore market segment
differences and target the whole market with one offer.
The purpose of strategic planning is to find ways in which your company can best use
its strengths to take advantage of attractive opportunities in the environment.
A brand personality is the specific mix of human traits that may be attributed to a
particular brand.
Sustainable marketing requires a smooth-functioning marketing system in which
consumers, companies, public policy makers, and others work together to ensure
socially and environmentally responsible marketing actions.
The simplest way to enter a foreign market is through direct investment.
A conventional distribution channel consists of one or more independent producers,
wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the
expense of the system as a whole.
A strip mall contains between 5 and 15 retail stores.
A break-even chart shows the total cost and total revenue expected at various sales
volume levels.
Environmental sustainability concerns have declined steadily over the past three
decades.
Business promotions are used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople.
Market challengers can grow by further increasing their market shares.
Companies stretch downward to add prestige to their current products.
E-mail can be the ultimate direct marketing tool, as it lets marketers send highly
targeted, tightly personalized, relationship-building messages.
The “Stop. Think. Tylenol.” ad slogan is an example of a moral appeal.
Whereas environmentalists consider whether the marketing system is efficiently serving
consumer wants, consumerists are concerned with marketing’s effects on the
environment and with the environmental costs of serving consumer needs and wants.
Acquisition involves the purchase of a whole company, a patent, or a license to produce
someone else’s product.
Most successful products are immediately accepted, and quickly move to the growth
stage of the PLC.
When using product bundle pricing, sellers combine several of their products and offer
the bundle at an increased price for increased profit.
Psychographic segmentation divides buyers into different segments based on lifestyle or
personality characteristics.
Using a push strategy, the producer directs its marketing activities (primarily
advertising and consumer promotion) toward final consumers to induce them to buy the
product.
During the prospecting step of the selling process, the salesperson meets the customer
for the first time.
“At Trader Joe’s, our mission is to provide all our customers the best food and beverage
values to be found anywhere, and the information to make informed buying decisions.”
This is a product-oriented business definition.
A company can create customer delight by meeting customer expectations through
offering good products that do what is promised.
Small businesses and not-for-profit organizations can collect a significant amount of
information at very little cost by researching online. They can also use observation and
informal surveys effectively.
Product refers to the goods-and-services combination that a company offers to its target
market.
Millennials comprise the most financially affluent group in America today.
Product costs set the ceiling for prices.
Air carriers transport digital products from producer to customer via satellite, cable,
phone wire, or wireless signal.
Concept testing works best with people who are familiar with the new idea and the new
product’s purpose. This generally includes top management, the sales force, and
research and development.
Producers use intermediaries because they create greater efficiency in making goods
available to target markets.
The existence of competitors in a market may cause a decrease in total demand.
Personality is a person’s pattern of living as expressed in his or her psychographics.
Companies in competition within a strategic group do not compete with other strategic
groups.
Which of the following is true about the customer sales force structure?
A) The customer sales force structure is a combination of territorial sales force structure
and product sales force structure.
B) Each salesperson is assigned to an exclusive geographic area and sells the company’s
full line of products or services to all customers in that territory.
C) Salespersons specialize in only a particular product line as the company produces
numerous and complex products.
D) Companies using customer sales force structure tend to ignore the importance of
long-term relationship building with customers.
E) Separate sales forces are set up for different industries, serving current customers
versus finding new ones.
A(n) ________ marketing system consists of producers, wholesalers, and retailers
acting as a unified system.
A) horizontal
B) communal
C) multitiered
D) vertical
E) equilateral
Stephanie and John wanted to purchase a high-end sports car. They viewed a
commercial for a particular sports car that highlighted the cost, design, and power of the
car. After viewing the ad, Stephanie felt that the car’s price was acceptable, considering
the superior and unique design. John thought that the car was expensive owing to the
high power engine installed in it. They used the information in different ways, focusing
on issues that each considered important. Which of the following concepts does this
scenario demonstrate?
A) selective distortion
B) consumer ethnocentrism
C) selective retention
D) selective attention
E) cognitive dissonance
During the ________ step of the selling process, the salesperson tells the value story to
the buyer, showing how the company’s product or service solves the customer’s
problems.
A) prospecting
B) preapproach
C) presentation
D) closing
E) follow-up
The process of evaluating each market segment’s attractiveness and selecting one or
more segments to enter is known as ________.
A) market segmentation
B) diversification
C) market targeting
D) prospecting
E) downsizing
Which of the following would a defender of globalization most likely use as an
example to argue that concerns of Americanization are overblown and that globalization
is indeed a two-way street?
A) the view of McDonald’s being a domestic brand in China
B) the growing popularity of coffee in China since the introduction of Starbucks
C) the growing number of IKEA furniture stores in the United States
D) the initial failure of Disneyland Paris
E) the anti-globalization protests aimed at KFC
Which of the following marketing management orientations focuses primarily on
improving efficiencies along the supply chain?
A) production concept
B) product concept
C) selling concept
D) marketing concept
E) societal marketing concept
Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via
Star City stores. This is an example of a(n)________ distribution system.
A) conventional
B) inclusive
C) intensive
D) extensive
E) multichannel
Soon-Yi Park’s chain of travel agencies has identified the lesbian, gay, bisexual, and
transgender community as a growing market that spends an increasing percentage of its
income on travel. Which of the following would be the LEAST effective component of
a marketing plan for Soon-Yi to take advantage of this opportunity?
A) develop a presence on LGBT-oriented social networking sites
B) position his agency as focused on specialized experiences
C) implement a mass marketing campaign
D) place specially targeted ads in gay-themed publications
E) advertise on LOGO, the cable television network aimed at gays and lesbians and
their friends and family
________ consists of inviting 6 to 10 people to meet with a trained moderator to talk
about a product, service, or organization.
A) Telephone interviewing
B) Individual interviewing
C) A mail questionnaire
D) An online survey
E) Focus group interviewing
In the context of geographical shifts in population, the migration toward ________
areas has resulted in a rapid increase in the number of people who telecommute.
A) urban
B) remote
C) rural
D) metropolitan
E) micropolitan
Think Ink is a growing company that sells a variety of inks for home and business
printers. Management at Think Ink has decided to open a sales branch overseas to
handle sales and distribution abroad. Think Ink is engaging in ________.
A) indirect exporting
B) direct exporting
C) licensing
D) joint ownership
E) management contracting
Price discrimination is legal when a ________.
A) manufacturer and reseller have agreed upon a specified retail price for a product
B) manufacturer sells to retailers in different markets
C) seller can prove its costs are different when selling to different retailers
D) seller advertises prices that are not actually available to consumers
E) seller has not communicated with competitors before announcing prices
At which stage in the PLC do profits increase as promotion costs are spread over a large
volume, and as the firm enters new market segments?
A) maturity
B) introduction
C) decline
D) growth
E) harvest
Melissa Price is a member of the sales force at Urban Fashions, a Houston-based
manufacturer of women’s apparel. Melissa is preparing for a first meeting with a
wholesaler who is a potential customer. She is learning as much as she can about her
prospect and his organization. Melissa is in the ________ step of the personal selling
process.
A) prospecting
B) qualifying
C) preapproach
D) follow-up
E) demonstration
Which of the following is true about the sales force of a company?
A) Salespeople rely on engineers and manufacturers to learn about customer needs.
B) The sales force plays a minor role in customer-company relationships.
C) Salespeople rarely visit in person with customers.
D) Salespeople represent customers to the company, championing customers’ interests.
E) Salespeople do not have the authority to act on customers’ objections.
Which of the following is true with regard to products?
A) The quality of products is far more difficult to measure than that of services.
B) Products do not include experiences, organizations, persons, places, and ideas.
C) Products are not meant for sale in the market.
D) Products include services, events, persons, places, organizations, ideas, or a mixture
of these.
E) Products refer to only those activities that are essentially intangible.
Under the ________ concept, each manager must look beyond what is legal and
develop standards based on personal integrity, corporate conscience, and long-run
consumer welfare.
A) sustainable marketing
B) consumer marketing
C) societal marketing
D) strategic planning
E) direct marketing
Big Moose Toys is a market pioneer introducing a modern version of Bubble the
Moose, a character from an animated television series originally broadcast in the ’50s
and ’60s. The company’s version of Sandy the Flying Squirrel, a character from the
show targeted to baby boomers, was a strong success. Since the firm is a market
pioneer, it needs to make the new launch strategy for Bubble the Moose consistent with
the intended ________.
A) pricing
B) product positioning
C) brand extension
D) prototype
E) fad
For concept test, companies will frequently present customers with ________ of the
concept for a reliable concept test.
A) a verbal description
B) a PowerPoint slide
C) a picture
D) a physical presentation
E) a printed paragraph
________ segmentation assumes that nations close to one another will have many
common traits and behaviors.
A) Geographic
B) Occasion
C) Psychographic
D) Benefit
E) Demographic
Which of the following is a trend that depicts the increasingly nontraditional nature of
today’s American families?
A) the low percentage of working women in the workforce
B) the low percentage of married couples with children
C) the sharply declining number of dual-income families
D) the sharply declining number of stay-at-home dads
E) the decreasing reliance on convenience foods and services
Which of the following is a market leader strategy?
A) expanding market share
B) multiple niching
C) full frontal attack
D) following at a distance
E) following closely
In a(n) ________, consumers interact with new products and marketing tactics in
laboratory stores or virtual online shopping environments.
A) standard test market
B) focus group
C) controlled test market
D) simulated test market
E) individual survey
Since a person’s economic situation will affect her store and product choices, marketers
watch trends in spending, personal income, interest rates, and ________.
A) employment
B) savings
C) home purchases
D) rents
E) fuel prices
Independent bloggers are self-made influencers. Traits that make them relevant to
marketers include ________.
A) creative writing skills
B) professional Web site
C) good fit with the brand
D) a few vocal followers
E) technological skills
Designing a plan for primary data collection requires decisions on all of the following
EXCEPT ________.
A) research instruments
B) contact methods
C) sampling plan
D) research results
E) research approaches
Rather than challenging head on, a challenger can make a(n) ________ attack on the
competitor’s weaknesses or on gaps in the competitor’s market coverage.
A) bypass
B) frontal
C) indirect
D) guerrilla
E) preemptive
Which of the following is a product decision that may be called into question under the
law?
A) stealing trade secrets
B) misrepresenting
C) patent protection
D) unfair discrimination
E) excessive cost
Which of the following is the most logical budget-setting method?
A) percentage-of-sales method
B) affordable method
C) competitive-parity method
D) objective-and-task method
E) push method
Which of the following is true with regard to a market segment?
A) A market segment consists of consumers with dissimilar needs and preferences.
B) A market segment consists of consumers who respond in a similar way to a given set
of marketing efforts.
C) Very few markets have segments.
D) Dividing the market into segments decreases the efficiency of the selling process.
E) Dividing the market into segments reduces composite demand.
Customer satisfaction is a goal that companies strive to earn. Companies can achieve
customer delight by ________.
A) regularly putting products on sale
B) promising only what they can deliver and then delivering more than they promise
C) offering promotional deals such as “buy one and get one free”
D) creating contests with exciting prizes
E) using celebrities to advertise the products
Price is important to managers ________.
A) because prices cannot be changed quickly, so must be correctly determined
B) because a small percentage improvement in price can generate a large percentage
increase in profitability
C) but other marketing mix elements create customer value and build relationships
D) but product features can be changed more quickly
E) but has little impact on a firm’s market share
Which of the following most likely occurs in the supplier selection stage of the business
buying decision process?
A) The buyer calls for detailed written proposals or formal presentations from each
potential supplier.
B) The buyer compiles a small list of qualified suppliers by reviewing trade directories,
doing computer searches, or contacting other companies for recommendations.
C) The buying team decides on the best product characteristics and specifies them
accordingly.
D) The buyer prepares a general need description and identifies the quantity of the
needed item.
E) The buying center draws up a list of the desired supplier attributes and their relative
importance.
Why is niching profitable?
What is the main purpose of the executive summary in a marketing plan?
What are the major trends in today’s natural environment? How do these trends affect
companies?
Compare and contrast specialty stores and convenience stores.
Define a buying center and the major roles played by members of an organization in the
purchase decision process.
Explain how wholesalers have been able to use technology to cut costs.
What are the key service characteristics a company must consider when designing
marketing programs? Briefly describe each characteristic.
Discuss the conditions under which a company might consider using price cuts or price
increases.
Why do businesses use cash discounts when they are in essence losing some money on
the sale?
Briefly discuss monopolistic competition.
How do resellers answer criticism of the high costs of distribution?
What is the primary focus of a competitor-centered company?
How do merchant wholesalers and agents/brokers differ?
What are two possible risks involved with licensing?
What types of products do specialty stores carry? Give an example of a specialty store.
What does a call plan show?