A pricing strategy that allows marketers to vary prices based on such factors as demand,
even though the cost of providing those goods or services remains the same is called
a. yield management
b. break-even point
c. supply analysis
d. cost-plus pricing
The brand of petroleum marketed by BP took a hit when the firm was implicated in the
2010 Gulf of Mexico oil spill. On which dimension of brand personality was BP
primarily affected?
a. Relevance
b. Esteem
c. Popularity
d. Knowledge
e. Competitiveness
During a long career in selling to different business markets, June felt most challenged
when she was dealing with the federal government. Unlike most of her commercial
customers, government purchase agents typically:
a. Make most purchases during three months of the year.
b. May be influenced by dozens of interested parties.
c. Require bids or written sales proposals.
d. Must comply with SR (social responsibility) standards
e. Must use fixed-price contracts
The financial bottom line refers to the limitations laid on the budgets of a firm.
a. True
b. False
Electric power companies often give advice on how consumers can use less electricity
during the summer and save money on their electric bills. This is an example of
demarketing.
a. True
b. False
You work for a uniform manufacturer that sells to police departments, supermarkets,
and airlines. For segmentation purposes, its customers are grouped into three categories:
government agencies (police), retailers (supermarkets), and service providers (airlines).
This is segmentation by _______:
a. end-use application
b. purchase categories
c. customer type
d. North American Industry Classification
e. geographic characteristics
An approach is a salesperson’s initial contact with the customer.
a. True
b. False
Although the United States runs a continuing trade deficit in services, it has maintained
a trade surplus in goods since 1992.
a. True
b. False
The term “societal marketing” refers to online retail sales.
a. True
b. False
A sweepstakes chooses winners from a group of people who have purchased the
product.
a. True
b. False
A manufacturer wants to increase purchase rates of his product and reward those
consumers who make multiple purchases. He decides to use a consumer-oriented sales
promotion that has an expiration date and requires the purchaser to submit a proof of
purchase. Which sales promotion will the manufacturer use?
a. bonus pack
b. trade allowance
c. coupon
d. rebate
e. sweepstakes
When the list price of a product is discounted by the value of a used product that is
turned in at the time of sale, the transaction is called a sale with a trade-in.
a. True
b. False
Some firms register a brand name before they have manufactured the product in order
to prevent competitors from using the name.
a. True
b. False
The cost of finding new customers is far less than the cost of maintaining existing ones.
a. True
b. False
In order for a new business to be competitive in the market, it must often offer lower
prices than its more established rivals. The business may cut services or offer fewer
services so that it can offer these reduced prices while maintaining a profit margin. As
the business becomes more established and its older rivals are put out of business, it can
begin to offer more services and raise its prices.
Which of the following concepts does the paragraph best illustrate?
a. retailing strategy
b. retail convergence
c. evolution of retail
d. wheel of retailing
e. targeted retail
SWOT analysis refers to an examination of a firm that is limited to the variables of its
stability, work ethic, organizational structure, and technological expertise.
a. True
b. False
Firms can reposition their already successful products in order to gain a greater market
share.
a. True
b. False
Best Transport Solutions provides trucking services to various furniture manufacturers.
The regular rate that Best Transport would charge for moving furniture from a
company’s warehouse to a specific retail store is referred to as the _____ rate.
a. going
b. special
c. class
d. repo
An organization that provides first-time exporters with expertise in locating foreign
buyers, handling paperwork, and conforming to local labeling and testing laws is called
a(n):
a. export facilitator.
b. export-trading company.
c. trade assistance corporation.
d. export-management company.
Each mode of transportation has its own unique characteristics, and logistics managers
select the best options for their specific transportation needs. For this particular job, you
decide that your products should be transported via a combination of the three major
modes of transportation that control the largest share of the freight business. How will
you be transporting your products?
a. Rail carriers; motor carriers; water carriers
b. Water carriers; motor carriers; pipelines
c. Air carriers; rail carriers; motor carriers
d. Motor carriers; pipelines; air carriers
e. Rail carriers; motor carriers; pipelines
G.J Inc., an electronic component manufacturer and supplier, has an inventory
management system that stores purchase patterns and requirements of its customers.
Through this system the firm decides on the amount of the product required by the
buyers and automatically ships the supplies to the buyer based on a preexisting
agreement. This type of inventory management system is called _____.
a. lateral management system
b. vendor-managed inventory
c. distributive management system
d. symbiotic inventory
Marketing is the organizational function that refers to all forms of selling from
institutional sales to personal selling.
a. True
b. False
You are conducting a business startup workshop sponsored by the Small Business
Administration. The workshop attendees are all aspiring business owners who are
excited yet fearful about the prospect of starting their own businesses. Earlier in the
workshop, you asked the attendees to complete a questionnaire about their major
concerns in starting a new business. The majority of the respondents indicated their
biggest concern is lack of business experience.
Based on this concern, which of the following business strategies is most appropriate
for these workshop attendees?
a. start their business as a full-service wholesaler
b. start their business as a franchisee
c. start their business as a mail-order wholesaler
d. start their business as a merchant wholesaler
e. start their business as a franchiser
Nations with low per-capita incomes are usually good markets for:
a. automobiles and electronics.
b. expensive industrial machinery.
c. agricultural hand tools.
d. luxury goods.
In notforprofit organizations, _____ may interfere with the organization’s marketing
program.
a. stockholders
b. the government
c. serviceusers
d. major contributors
Which of the following is a facilitating function of marketing?
a. Buying
b. Selling
c. Standardization and grading
d. Distribution
Product managers have profit responsibility for their product group and help the
retailer’s category buyer maximize sales for the whole category, not just the particular
manufacturer’s product.
a. True
b. False
Cooperatives help independent retailers to compete with chains by providing volume
buying power.
a. True
b. False
You work for an international women’s clothing wholesaler. In the past, your firm has
marketed mainly in Western Europe, using price to achieve either profitability or
prestige objectives. But changing business conditions mean that you now need to focus
on other pricing objectives. What conditions are likely to have changed?
a. You are expanding into parts of the world where your clothing designs are less sought
after than in Western Europe.
b. You are facing increased European competition.
c. Your firm has become the lowest-cost supplier to most major customers.
d. Your firm has become a price leader, able to establish international prices.
e. Currency fluctuations have become a problem in your key markets.
Describe interactive marketing and social media. What are the advantages of interactive
marketing and social marketing?