In times of high inflation, businesses seeking to increase their profit margins can do so
only by increasing their efficiency.
a. True
b. False
Market segmentation helps decision makers to more accurately define marketing
objectives and better allocate resources.
a. True
b. False
An upmarket dressmaking company deliberately keeps its number of outlets very low
even after years of climbing profits. There are no more than two in any major city of the
United States. The policy may be justified in terms of the company’s objective to
______.
a. cut costs
b. meet market’s needs
c. be exclusive
d. play it safe
A wellknown rule of thumb in the advertising industry is that the goal in advertising is
to sell the attributes of the product, not its benefits.
a. True
b. False
A furniture manufacturer with a reputation for making plain, lightweight foldable steel
chairs decides to make cushioned chairs with printed upholstery. The new type of chair
will be a ______.
a. product line extension
b. discontinuous innovation
c. repositioned product
d. new and improved product
According to the three levels of ethical development, which statement is true of
conventional morality?
a. It is the most basic level of ethical development.
b. A person at this level performs unethical and manipulative actions.
c. It is predominantly characterized by an egocentric viewpoint of an individual.
d. A person at this level is more concerned with how an action will be viewed by others.
Which of the following is a difference between purchaser and decider?
a. The purchaser actually negotiates the purchase, whereas the decider approves the
selection of the supplier.
b. The purchaser approves the selection of the supplier and the decider negotiates the
purchase.
c. The purchaser suggests making a purchase; the decider influences the buying
decision.
d. The purchaser regulates information about the product and the decider ultimately
uses the product.
Which of the following terms states that costs decline at a predictable rate as experience
with a product increases?
a. Ansoff’s strategic opportunity matrix
b. Experience curve
c. Marketing myopia
d. Market opportunity analysis (MOA)
Absolute failure of a new product occurs when it returns a profit but fails to achieve its
sales goals, profit goals, or market share goals.
a. True
b. False
A popular production company wants to release a trailer of one of its upcoming movies
to create some buzz. Given this information, which of the following would be the best
platform for the production company to use?
a. StumbleUpon
b. Photobucket
c. YouTube
d. Imgur
In the consumer decisionmaking process, _____ uses information—either based on past
interactions or collected through external sources—to instantaneously customize the
customer experience.
a. automation
b. contextual innovation
c. journey innovation
d. proactive personalization
Family branding is about using different brand names for different products.
a. True
b. False
A salesperson’s responsibilities usually end with making the sale and placing the order.
a. True
b. False
Which of the following ethical theories first identifies an ethical dilemma and then
draws a comparison with other similar dilemmas and prior experiences to reach the best
possible solution?
a. Deontological theory
b. Moral relativism theory
c. Casuist ethical theory
d. Utilitarian ethical theory
A firm could benefit from a production orientation when _____.
a. it produces exactly what the market wants
b. the market demand is less than the products supplied by the firm
c. it hopes that the product it produces is something customers want
d. it focuses on what company management thinks should be produced
In which way are deontological theory and moral relativism similar?
a. Both theories are concerned with the welfare of others.
b. Both theories may lead to actions that are not ethically correct.
c. Both theories are free from flaws.
d. Both theories compare a current ethical dilemma with similar examples and
outcomes.
Besides its high cost, what is the other possible problem that test marketing is likely to
face?
a. The actions of competitors countering the test market may contribute to normalizing
conditions that the testing firm might expect in the market.
b. The product’s success may present a threat to other product extensions recently
introduced by the company and thus spread its customers thin.
c. It exposes the new product and its marketing mix to competitors before its
introduction. Thus, the element of surprise is lost.
d. Consumers may perceive the sales promotion, pricing, or advertising campaign as
overzealous hard sell or even unfair trade practices.
Rues and West Bros., an ammunition manufacturer, defines its mission statement as
being in the ammunitionproduction business rather than in the arms industry. In the
given scenario, Rues and West Bros. is exhibiting _____.
a. marketing inertia
b. marketing myopia
c. marketing dissonance
d. marketing blockage
Which of the following describes a forprofit rather than a nonprofit?
a. Prioritize market segments most likely to respond to their offerings.
b. Target those who are apathetic about receiving their services.
c. Complement, rather than compete with, the efforts of others.
d. Adopt undifferentiated strategies by default.
The CANSPAM Act:
a. prohibits commercial emailers from using false addresses and presenting false or
misleading information.
b. requires fastfood chains to open their facilities to health inspection at least once every
quarter.
c. requires verifiable parental consent before a website can collect information from
children.
d. allows commercial emailers to charge consumers a fee to opt out of receiving further
email.
Channel members are also known as _____.
a. intermediaries
b. laggards
c. early adopters
d. innovators
The three aspects of packaging that are especially important in international marketing
are product line extension, product mix width, and brand equity.
a. True
b. False
Which of the following is true of threedimensional printing?
a. Smaller, localized supply chains will outsource all customization orders.
b. Small manufacturers will profit from making fewer custom products.
c. Small manufacturers will produce products over very short lead times.
d. Small, localized supply chains will face stiff competition from bigger players.
A difference between peopleprocessing services and possessionprocessing services is
that possessionprocessing services
a. use technology directed at a customer’s assets.
b. focus more on customers and not on their physical possessions.
c. do not require customers to enter the service factory.
d. focus more on training employees on employee–customer interactions.
Every year, a manufacturer in Milwaukee, WI, makes raincoats and employs its own
fleet of vans to make the product available in stores across coastal Oregon and
Washington State just when the rainy season begins in those parts of the United States.
The manufacturer is creating ______.
a. form, time, and place utility
b. form, time, and exchange utility
c. time and place utility, but not form utility
d. form and place utility, but not time utility
Which of the following statements is true of executional styles for advertising?
a. They often dictate which type of media is to be employed to convey the message.
b. They are used in radio and television advertising and not in print or magazine
advertising.
c. They are seldom usedin advertisements for lowerrisk, lowinvolvement, routine
purchases.
d. They require little or no modification for marketing campaigns for political
candidates or issues.
Which of the following is the first step in the fourstep process of setting the right price
of a product?
a. Estimate demand, costs, and profits.
b. Establish pricing goals.
c. Choose a price strategy to help determine a base price.
d. Finetune the base price with pricing tactics.
Because the salesperson usually has multiple opportunities to present solutions to his or
her clients in personal selling, the quality of the sales proposal and the presentation are
not critical in making the sale.
a. True
b. False
Which form of advertising promotes the benefits of a specific good or service?
a. Institutional advertising
b. Product advertising
c. Competitive advertising
d. Comparative advertising
Casca Paints Inc., a manufacturer of paints and emulsions, owns a userfriendly website.
The website allows customers to upload pictures of their house to help in selecting their
color choices. Donnel Designs Inc., an interior decoration firm, enters into a partnership
with Casca Paints Inc. As a result, customers can now get a complete design solution
for their houses. This is an example of a _____.
a. straight rebuy
b. golden handshake
c. relationship commitment
d. strategic alliance
Customers expect service from the moment a product is purchased until it is disposed
of, and the customer service management process allows for touch points between the
buyer and seller for nearly half this life cycle.
a. True
b. False
In social media, negative comments and complaints can illuminate unknown brand
flaws.
a. True
b. False
Remonet, a smartphone manufacturer, has launched its new products—HY15, HY20,
and HY50. These smartphone models are part of its HY series. HY15, being the most
budget friendly, attracts more consumers and achieves better sales. In this scenario,
Remonet’s HY15 smartphone model is an example of a(n) _____.
a. convenience product
b. product item
c. unsought product
d. product line