A women’s apparel manufacturer in California recently acquired a Houston-based
company that manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation
Business demand that ultimately comes from the demand for consumer goods is known
as ________ demand.
A) derived
B) negative
C) primary
D) consumer
E) elastic
Which of the following was designed to help foster trade between nations?
A) tariffs
B) GATT
C) exchange controls
D) quotas
E) nontariff trade barriers
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
Compare and contrast a tariff and a quota.
Cozy Country Market entered the candle business with a unique product: a line of
candles made from soy that produces less smoke and lasts up to twice as long as other
candles. The firm sold this unique product exclusively to a few niches. The candles
were priced at twice the cost charged for normal candles. The product was also sold
online and in unconventional outlets not dominated by market leaders. In this case,
Cozy Country Market was using a(n) ________ against the market leaders.
A) preemptive attack
B) guerrilla attack
C) counter offensive attack
D) indirect attack
E) frontal attack
Product improvements, product modifications, and original products can all be
classified as ________.
A) blueprints
B) new products
C) prototypes
D) product extensions
E) test products
More and more companies are moving away from high-commission plans because
________.
A) outside salespeople tend to undermine the efforts of the inside sales team
B) high-commission plans require salespeople to work overtime
C) salespeople tend to become pushy which affects customer relationships
D) salespeople are prone to taking multiple sales jobs to maximize their income
E) salespeople end up spending too much time traveling to meet customers
Monica Carey is a conscientious marketing manager. Sometimes it is unclear what
decisions to make when she and her staff are faced with moral dilemmas. To help them
handle such situations, Monica and other managers should create broad guidelines that
everyone in the organization must follow. Which of the following terms best describes
these guidelines?
A) corporate value statements
B) company mission statement
C) company vision statement
D) corporate marketing ethics policies
E) company financial statement
Consumers are less likely to use price to judge the quality of a product when they
________.
A) have never tried the product before
B) have little knowledge of the brand
C) have experience with the product
D) are shopping for luxury items
E) cannot physically examine the product
Foreign businesses in India appear to receive unusually close scrutiny and must meet
special regulations, aimed at protecting local businesses. This includes nontariff trade
barriers. This reflects that a country’s ________ should be carefully considered before
doing business in that country.
A) political-legal environment
B) industrial structure
C) cultural norms
D) natural resources
E) income distribution
The long-run average cost (LRAC) curve indicates the ________.
A) per unit cost of output in the long run
B) projected total production costs of competitors
C) variable costs incurred by a firm over time
D) fixed costs incurred by a firm over the long term
E) number of units the market will buy in a given time period, at different prices that
might be charged
Which of the following is most likely true about a straight rebuy?
A) Suppliers are not required to focus on quality of products or services delivered.
B) A straight rebuy is far more complex than a new-task situation.
C) A straight rebuy is handled on a routine basis by the purchase department.
D) A straight rebuy occurs only when a buyer wants to pinpoint and procure the best
deal in the market.
E) A straight rebuy involves more opportunities for “out” buyers than do other types of
purchasing situations.
________ segmentation divides the market into segments based on variables such as
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and
generation.
A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic
Which of the following is true with regard to geographic organization?
A) It is the most common form of marketing organization.
B) Different marketing activities are headed by a functional specialist.
C) It requires salespeople to have international experience.
D) It reduces the overall efficiency of salespeople.
E) It allows salespeople to work with a minimum of travel time and cost.
Critics charge that a company’s marketing practices can harm other companies and
reduce competition. One of the problems critics identified is ________.
A) pollution
B) barriers to entry
C) unfair discrimination
D) bait-and-switch advertising
E) fair packaging and labeling
Many families with children are now attracted to the shopping district in Forest Ridge.
What characteristics about families as consumer groups might the owners of The Attic
Trunk want to keep in mind?
A) Though more women hold jobs outside the home today than when The Attic Trunk
first opened, husband-wife involvement in the buying process has remained relatively
unchanged.
B) Children have considerable amounts of disposable income and have a strong
influence on family buying decisions.
C) Women seldom account for any technology-related purchases.
D) Women typically account for most habitual purchases.
E) Men make all the major purchasing decisions in most families.
Which of the following is a drawback of local marketing?
A) Local marketing increases manufacturing costs by reducing the economies of scale.
B) Local marketing requires specialization that is difficult to identify.
C) Local marketing is not profitable for most small firms.
D) Local marketing cannot accommodate the needs of modern buyers who are
technology savvy.
E) Local marketing almost always results in brand dilution.
Whitelight sells its toothpastes in many convenience stores across the country. This is
an example of ________ distribution.
A) exclusive
B) selective
C) hybrid
D) intensive
E) normal
Which of the following is a nontariff trade barrier?
A) strike
B) quota
C) boycott
D) exchange premium
E) restrictive product standards
While comparing hotel rates on Google’s search engine, Brenda came across text-based
ads and links alongside the search results. This form of advertising is known as
________.
A) contextual advertising
B) rich media ads
C) content sponsorship
D) catalog advertising
E) social media advertising
Bosch is a German firm that manufactures home appliances such as dishwashers, ovens,
and ranges. It competes with companies such as GE Elite and LG. Bosch is perceived as
the class of the industry. Bosch pursues a(n) ________ strategy.
A) focus
B) blue ocean
C) overall cost leadership
D) differentiation
E) middle-of-the-road
When demand for athletic shoes produced by Nike and endorsed by Michael Jordan is
high, Nike limits how many pairs of shoes are manufactured. This action maintains
strong demand by limiting supply. This decision contradicts the philosophy of which
marketing concept?
A) marketing concept
B) product concept
C) production concept
D) societal marketing concept
E) selling concept
Firms use competitive marketing intelligence to ________.
A) create and sustain market monopolies
B) counter the adverse effects of organizational anarchy
C) perpetuate organizational learning
D) gain early warnings of competitor moves and strategies
E) strengthen weak ties with industry competitors
Which of the following is an example of a pure tangible good?
A) a laptop with a comprehensive warranty for three years
B) an online shoe retailer that provides free home delivery
C) an agency that offers free legal advice
D) a credit card
E) a bag of potato chips
Marketers realize that their commercial sources ________ the buyer.
A) legitimize products
B) attract
C) evaluate products
D) personalize products to
E) inform
Logos, uniforms, brochures, and company trucks are all examples of ________
materials that can be used to help a company create a visual image which the public can
immediately recognize.
A) direct marketing
B) social marketing
C) public service
D) corporate identity
E) buzz marketing
The market researchers at HoneyCamp Foods gather daily sales data and sort it by
product line and region. With the help of sophisticated tools and techniques, they
develop the data needed by marketing managers to evaluate the market share of the
company’s different products and also to gain valuable market insights. This mix of
people and procedures at HoneyCamp Foods that generate actionable marketing
insights represents a(n) ________.
A) enterprise planning system
B) product mix
C) strategic planning system
D) marketing information system
E) business portfolio
An advertising objective is classified by its primary purpose, which is to inform,
persuade, or ________.
A) reciprocate
B) compete
C) remind
D) explain
E) suggest
Which of the following best describes divisibility of an innovation that influences the
rate of adoption?
A) It is the degree to which the innovation is difficult to understand.
B) It is the degree to which the results of using the innovation can be observed or
described to others.
C) It is the degree to which the innovation appears superior to existing products.
D) It is the degree to which the innovation may be tried on a limited basis.
E) It is the degree to which the innovation fits the values and experiences of potential
consumers.
In 1994, ________ established a free trade zone among the United States, Canada, and
Mexico.
A) GATT
B) the WTO
C) NAFTA
D) the EU
E) CAFTA
Which stage in the product life cycle is characterized by rapid market acceptance and
increasing profits?
A) introduction
B) maturity
C) growth
D) decline
E) product development
Which of the following is a goods-and-services combination?
A) a bicycle
B) a milk shake at an ice cream store
C) chocolate chips
D) a train ride
E) a music lesson
The single most important demographic trend in the United States is the ________.
A) changing age structure of the population
B) mobility of families
C) changing family structure of the population
D) increasing number of professional jobs
E) increasing birth rate
Which of the following processes does value-based pricing reverse?
A) high-low pricing
B) everyday low pricing
C) cost-based pricing
D) good-value pricing
E) value-added pricing