Category killers are a type of limited-line retailer that offer huge selections and low
prices in single product lines.
a. True
b. False
The lumber that a carpenter purchases to make a table for a customer can be classified
as a(n):
a. impulse product.
b. business product.
c. consumer good.
d. final product.
Burlan Paints, manufacturer of paints for both interiors and exteriors, prices its products
differently in various international markets to suit the requirements of local customers.
Burlan Paints is implementing the _____ pricing strategy for pricing products.
a. dual
b. standard
c. zone
d. market-differentiated
Which of the following is a marketing intermediary who may or may not take
possession of the goods but never takes title?
a. Agent
b. Wholesaler
c. Retailer
d. Industrial distributor
The compensation package for sales personnel that gives management more control
over how sales personnel allocate their efforts, but may reduce the incentive to expand
sales, is the:
a. pure commission program.
b. salary plus bonus system.
c. straight salary plan.
d. salary plus commission system.
A negotiation process wherein each marketer develops its offer, including a price that
will satisfy the criteria determined by the customer’s problem, need, or opportunity, is
known as:
a. competitive bidding.
b. decentralized buying.
c. collective underwriting.
d. systems integration.
A(n) _____ is a free or paid software download that links users to a wide range of
goods and services, media and text content, social media platforms, search engines, and
the like.
a. QR code
b. blog
c. social media analytics tool
d. app
An effective label performs both promotional and informational functions.
a. True
b. False
A metropolitan statistical area (MSA) is a freestanding urban area with a population in
the urban center of at least 50,000 and a total MSA population of 100,000 or more.
a. True
b. False
drop shipperAlejandro is the manager of a combination gas station and convenience
store located at the intersection of two busy highways. Recently he was approached by
the owner of a new company, Fro2Go, about the possibility of placing their product in
his store. Fro2Go places its frozen yogurt dispensers in convenience stores throughout
the state. Every week, a company representative visits each location to check on status
of the dispensers, deliver fresh frozen yogurt supplies, and remove any old or expired
product.
What kind of independently owned wholesaling intermediary is Fro2Go?
a. rack jobber
b. drop shipper
c. truck wholesaler
d. industrial distributor
e. cash-and-carry wholesaler
Austin, Texas is host to a popular festival, South by Southwest (SXSW) which recently
celebrated its 30th anniversary. It has released dates for the new year and invites
participants for the unique music, film, and interactive events or sessions from March
10th through 19th. Which category of nontraditional marketing would best characterize
the marketing activities to attract attendees for the multiday festival?
a. event
b. cause
c. organization
d. place
Webtrends Analytics can be used to analyze marketing data from mobile, social, and
Web channels.
a. True
b. False
The first presentation being made to a potential customer is likely to be more detailed
than that used for an existing customer.
a. True
b. False
The breakeven point is the point at which total revenue equals total cost.
a. True
b. False
You aspire to a career developing new biomedical technologies. Choose the type(s) of
institutions that might play a role in your future endeavors.
a. Government
b. Industry
c. Universities
d. Notforprofit organizations
e. Technology analysts
_____ constitute the regular expenses a firm incurs in its daily operations.
a. marketing mix
b. specialty products
c. product
d. services
e. convenience products
f. impulse goods
g. installations
h. wholesalers
i. business-to-business (B2B)
j. supplies
k. emergency goods
l. shopping products
m. component parts and materials
n. staples
o. product mix
p. product line
q. line extension
r. total quality management
s. product lifecycle
t. benchmarking
Marketers can rely on a full arsenal of tools and techniques to facilitate the
development of effective marketing plans. With respect to these tools and techniques,
which one of the following statements is true?
a. Porter’s Five Forces Model is a model that identifies five competitive pricing
strategies for an organization to use in its marketing mix.
b. A second mover strategy suggests that the firm that is second to offer a product or
service will likely be the long term winner in the market.
c. The bargaining power of suppliers is influenced by the number of buyers in the
market.
d. Social responsibility and philanthropy influence the strategies that companies use to
distinguish themselves from their competitors.
e. The strategic window refers to periods of time where what a firm does well is a close
fit to what the requirements are in a given market.
The interactive exchange between firms and their customers creates the competitive
environment. There are multiple types of competitive environments, and each has its
own characteristics. Your company operates in a competitive environment where there
are only a limited number of competitors. Moreover, it is hard for new competitors to
enter the industry because of the high startup costs involved.
Which one of the following competitive environments best describes the industry your
company is in?
a. Monopolistic competition
b. Monopoly
c. Oligopoly
d. Perfect competition
e. Socialism
The recently ratified Treaty of Lisbon enables the EU to enter into international
agreements as a political entity.
a. True
b. False
_____ is a targeting strategy that targets potential customers at a very basic level, such
as by zip code, specific occupation, or lifestyle.
a. target market
b. market segmentation
c. cohort effect
d. primary metropolitan statistical area
e. differentiated marketing
f. concentrated marketing
g. micromarketing
h. positioning map
i. VALS
j. AIO statement
k. core region
l. consumer product
m. demographic segmentation
n. Pareto’s law
o. psychographic segmentation
p. geographic information systems
q. positioning
r. geographic segmentation
s. business product
t. mass marketing
The audience’s trust is essential for the success of social media marketing efforts.
a. True
b. False
Toyota uses steel in the manufacturing process of automobiles in factories around the
world. The price of steel may vary at different times throughout the year but Toyota
only purchases the amount of steel needed to maintain their output goals at each facility.
Thus, if the price increases, Toyota continues to purchase the amount of steel needed to
build the number of cars they have determined to build. For Toyota, the demand for
steel is most likely:
a. inelastic
b. elastic
c. derived
d. joint
As Chief Marketing Officer for a pharmaceutical company, you’ve chosen to use a
skimming pricing strategy when introducing the firm’s breakthrough pain medication.
Nervous about charging high prices during an economic downturn, the CEO wants you
to explain your choice to the board of directors. What should you say?
a. Skimming pricing strategy is generally more successful than market-plus pricing
strategy.
b. If other drug companies introduce competitive products, your initial high price will
be dropped.
c. Skimming allows the firm to quickly recoup its research and development costs.
d. Skimming allows the firm to control demand during the medication’s introductory
stages.
e. Skimming discourages competition.
You just graduated from college with a degree in business. You are excited about
beginning your professional career. To begin your job search, you are doing some soul
searching to decide what type of company you want to work for. You have come up
with the following list of characteristics that your ideal company would have:
1) Your ideal company does not seek to maximize shareholder value.
2) Your ideal company will be a service organization with a public mission.
3) Your ideal company will consider marketing an essential function.
4) Your ideal company will reinvest all its revenues into achieving the organization’s
objectives.
Based on these characteristics, you should most appropriately pursue professional
opportunities in a _____________ company.
a. Nonprofit
b. Social services
c. Profit oriented
d. Consumer advocacy
e. Strategic alliance
Staples are convenience goods and services that consumers constantly replenish to
maintain a ready inventory.
a. True
b. False
The assessment of supplier performance in categories such as price, back orders, timely
delivery, and attention to special requests is called _____.
a. merchandisers
b. trade industries
c. remanufacturing
d. nearshoring
e. end-use application segmentation
f. global sourcing
g. joint demand
h. inelastic demand
i. outsourcing
j. value analysis
k. gatekeeper
l. commercial market
m. reciprocity
n. vendor analysis
o. category advisor
p. modified rebuy
q. demographic characteristics based segmentation
r. influencers
s. buyer
t. customer-based segmentation
The role of an influencer in a buying center is to:
a. inform potential suppliers about the required specifications of the product.
b. select the supplier and implement the procedures for securing the good.
c. supply information to guide the evaluation of alternatives.
d. make the actual buying decision.
Which of the following is one of the most important aspects of a government or
organizational procurement?
a. The bidder’s profit on the product
b. The payment schedule for the product
c. Provisions for deflation or inflation
d. Development of accurate descriptions of products to buy.
The emergence of the marketing concept can be linked to the shift from a seller’s
market to a buyer’s market.
a. True
b. False
The goal of _____ is to analyze information and decide whether the identified trends
represent significant opportunities or pose major threats to the company.
a. environmental scanning
b. green marketing
c. benchmarking
d. social marketing
Consumer innovators are individuals who rely on the experiences of initial buyers
before making trial purchases.
a. True
b. False
The buyer has the formal authority to select a supplier and to implement the procedures
for securing the good or service.
a. True
b. False
An internal partnership consists of a relationship that involves long-term exchanges of
goods or services in return for cash.
a. True
b. False
Unity Point Hospital system implemented a webbased system that provides the
capability for suppliers to place bids and once approved, submit invoices, schedule
delivery and receive payment electronically. The purchasing managers for Unity Point
appreciate the enhanced efficiency of working with multiple vendors to obtain the
various products and services needed by the Unity Point system of hospitals and
physician offices. This webbased system is called:
a. eprocurement
b. intranet
c. collaborative procurement
d. electronic purchasing network
