Herbie Inc., a firm manufacturing sandwich makers, has fixed costs of $250,000,
variable costs of $20 per unit of output, and expected unit sales of 50,000 units. What is
the unit cost of a sandwich maker manufactured by Herbie?
A) $15
B) $25
C) $30
D) $50
E) $75
Which of the following is true of the Millennials?
A) They are the children of baby boomers and were born between 1977 and 2000.
B) They control an estimated 70 percent of the disposable income in the United States.
C) They have reached their peak earning and spending years.
D) They were the first to grow up in the Internet era.
E) They are less immersed in technology than Gen Xers.
Which of the following is a disadvantage of using blogs as a marketing tool?
A) The blogosphere is cluttered and difficult to control.
B) Advertising on a blog is typically expensive and time consuming.
C) Using blogs as a marketing tool offers minimum reach to a target audience.
D) Blogs, when used as a marketing tool, have a low rank in Web directories and search
engines.
E) Blogs do not provide the kind of personalized approach that today’s marketers are
looking for.
Which term refers to prices that buyers carry in their minds and check with when they
look at a given product?
A) product line prices
B) reference prices
C) location-based prices
D) product form prices
E) time-based prices
Working with foreign companies to produce or market products or services is known as
________.
A) direct export
B) global distribution
C) direct investment
D) joint venturing
E) indirect export
A ________ consists of a set of buyers who share common needs or characteristics that
the company decides to serve.
A) marketing channel
B) citizen-action group
C) distribution channel
D) customer franchise
E) target market
Which of the following is part of an internal green marketing program?
A) design for environment practices
B) cradle-to-cradle practices
C) biodegradable packaging
D) product stewardship
E) new clean technology
________ logistics involves moving products from the factory to resellers and
ultimately to customers.
A) Customer-centered
B) Reverse
C) Upstream
D) Outbound
E) Inbound
Effective Web sites contain interactive tools that help find and evaluate content of
interest, links to other related sites, useful information, changing promotional offers,
and ________.
A) celebrity endorsers
B) respected columnists
C) advertising for unrelated products
D) enticements for customers to include their friends and contacts
E) entertaining features that lend excitement
Mary Adams is helping her company develop a marketing program for a new product
line. The program is designed to appeal most to less materialistic consumer groups who
are likely to prize experience, not acquisition. The marketing program is most likely
designed to appeal to which of the following demographic groups?
A) Generation X
B) Millennials
C) Echo Boomers
D) Silent Generation
E) Lost Generation
Retailers can also be classified by the length and breadth of their product assortments.
In terms of product line, what kind of retailer is Indiana Wood?
A) supermarket
B) specialty store
C) category killer
D) department store
E) convenience store
Logistics has grown in importance for all of the following reasons EXCEPT that
________.
A) companies that become channel members want to continue to grow and expand.
B) companies can gain a powerful competitive advantage by using improved logistics
to give customers better service or lower prices.
C) improved logistics can yield tremendous cost savings to both a company and its
customers.
D) more than almost any other marketing function, logistics affects the environment
and a firm’s environmental sustainability efforts.
E) the explosion in product variety has created a need for improved logistics
management.
The following quote best describes ________. “The marvels of modern technology
include the development of a soda can which, when discarded, will last forever, and a
car, which when properly cared for, will rust out in two or three years.”
A) planned obsolescence
B) product failure
C) deceptive promotions
D) deceptive packaging
E) excessive markups
Of the 141 companies on the list, Jason chose to survey only 75 of them. He sent
surveys to both small as well as large companies. If Jason selected survey recipients
randomly from two mutually exclusive groups comprised of small and large companies
respectively, he most likely used a ________.
A) simple random sample
B) judgment sample
C) convenience sample
D) stratified random sample
E) quota sample
The overselling of private goods results in ________ as they require more public
services that may not be available.
A) cultural pollution
B) misdirected funding
C) social costs
D) materialism
E) opportunity expenses
________ is very believable because news stories, features, sponsorships, and events
seem more real and believable to readers than ads do.
A) Differentiated marketing
B) Public relations
C) Direct marketing
D) Sales promotion
E) Personal selling
If a company ________, it should adopt a product sales force structure, in which the
sales force specializes along product lines.
A) specializes in a single product
B) manufactures a small number of simple products
C) maintains that product specialization is counterproductive
D) has numerous and complex products
E) lacks salespeople with superior technical know-how
Happy Pets, a company manufacturing pet foods and accessories, created a membership
club for its regular customers called “I Love My Pet.” This group consists of animal
lovers selected by the company to complete product-related polls, chat with product
developers, and provide feedback about specific products. Which of the following best
describes “I Love My Pet”?
A) primary group
B) immersion group
C) mob
D) dyad
E) triad
________ occurs when a seller states price savings that are not actually available to
consumers.
A) Comparative pricing
B) Scanner fraud
C) Deceptive pricing
D) Market skimming
E) Price collusion
A financial services firm has several loyal customers who conduct business with them
exclusively. However, the company has noticed that this customer group is the least
profitable for the company, and in some cases, it increases their losses when engaging
in business with this group. Which of the following customer groups is being referred to
in this scenario?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) cash cows
________ distribution involves the use of more than one but fewer than all of the
intermediaries who are willing to carry a company’s products.
A) Exclusive
B) Selective
C) Intensive
D) Indirect
E) Corporate
Ross Stuart is a purchasing manager in a Texas-based manufacturing company. He
sources most of the raw materials needed by his company from Kramer Corp. However,
Ross is unhappy with Kramer’s prices. Additionally, he thinks that the quality of the raw
materials supplied by Kramer is substandard. Which of the following stages in the
business buying process is Ross’ company currently in?
A) general needs description
B) problem recognition
C) product specification
D) order-routine specification
E) performance review
Which of the following strategies involves weeding out weaker brands and focusing
marketing dollars only on brands that can achieve the number one or number two
market share positions with good growth prospects in their categories?
A) megabrand strategies
B) niche marketing strategies
C) social marketing strategies
D) co-branding
E) licensing
Essential-Beauty e-mailed a survey to a group of its most frequent, loyal customers.
The survey asked what makeup and skin care characteristics were most important to
them. The company’s marketing staff then ranked the performance of Essential-Beauty
products in each of these categories. Essentials was conducting a(n) ________.
A) customer lifetime value survey
B) entrepreneurial marketing strategy
C) intrepreneurial marketing strategy
D) customer value proposition
E) customer value analysis
________ becomes more important as competition increases. With this type of
advertising, a company’s objective is to build selective demand.
A) Institutional advertising
B) Informative advertising
C) Reminder advertising
D) Not-for-profit advertising
E) Persuasive advertising
Which of the following is true with regard to the product/expansion grid?
A) It classifies SBUs into four distinct categories.
B) It is a useful device for identifying growth opportunities.
C) It helps companies analyze their internal strengths and weaknesses.
D) It functions on the premise that firms should downsize to regain market share.
E) It is a useful device for segregating customers into distinct categories.
Using ________ pricing, companies are able to turn their trash into cash, allowing them
to make the price of their main product more competitive.
A) product bundle
B) optional product
C) captive product
D) by-product
E) product line
Managers at the Imperial Hotel-Chicago complained that the chain’s overall image was
hurt because Imperial Hotel-Dallas was overcharging guests and providing poor
service. The Imperial Hotel was experiencing ________ conflict.
A) equilateral
B) vertical
C) multitiered
D) communal
E) horizontal
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing,
design, production, and finance work in cross-functional groups to save time and
money in the new product development process. Fantastic Flavors uses a ________
approach.
A) customer-centered new product development
B) sequential product development
C) team-based new product development
D) heuristic
E) functional
Under the ________ concept, a company’s marketing should support the best long-run
performance of the marketing system.
A) corporate social responsibility
B) direct marketing
C) sustainable marketing
D) free enterprise system
E) strategic planning
Which of the following is true with regard to value selling?
A) Value selling refers to earning business from customers by cutting down prices of
value products.
B) Value selling refers to delivering superior customer value and capturing a fair return
on that value.
C) Value selling refers to the mass production of inferior-quality goods for sale.
D) Value selling dilutes customer loyalty in the long run.
E) Value selling tarnishes the brand image of a product in the long run.
Which of the following is LEAST relevant when a firm evaluates different market
segments?
A) segment size and growth
B) company resources
C) segment structural attractiveness
D) core competencies of competitors
E) company objectives
Government buyers are affected by all of the following factors EXCEPT ________
factors.
A) environmental
B) cultural
C) organizational
D) interpersonal
E) individual
The production concept and the product concept are marketing management
orientations that are more likely to lead to marketing myopia.