The first question in a questionnaire should be intentionally difficult and complicated in
order to weed out uninterested respondents.
In the concept development stage, a firm will create a single product concept to test.
Prior to the Great Recession of 2008/2009, American consumer spending was careful
and restrained.
Government organizations typically require suppliers to submit bids, and normally they
award the contract to the lowest bidder.
Interactive TV (iTV) lets viewers interact with television programming and advertising.
The competitive intelligence system of a company supplies key information to relevant
decision makers about the company’s competitors.
The real value of marketing research lies in the customer insights that it provides.
The role of marketing intermediaries is to transform the assortments of products made
by retailers into the assortments wanted by producers.
Recently, the increased use of online social networks and video sharing has reduced the
need for advertising standardization with global brands.
Marketers often involve actual customers in product testing.
During proposal solicitation, the buying center often will draw up a list of desired
supplier attributes and their relative importance.
Kiosk marketing features marketing messages and promotions delivered to on-the-go
consumers through their mobile devices.
While an individual’s beliefs are difficult to change, an individual’s attitudes are easy to
change.
Labels range from simple tags attached to products to complex graphics that are part of
the packaging.
Internal databases usually can be accessed more quickly and cheaply than other
information sources.
Branded community Web sites are designed to present brand content that engages
consumers and builds closer customer relationships rather than to sell the company’s
products directly.
If the pull strategy is effective, then consumers will demand the product from channel
members, who will in turn demand it from producers.
Advertising is the least used of the major promotion tools, although it has great
potential for building consumer awareness and reference.
Horizontal conflicts are conflicts between different levels of the same channel.
Full-service stores usually carry more specialty goods for which customers need or
want assistance or advice.
Within the organization, buying activity consists of two major parts: the buying center
and the buying decision process.
Because of strict consumer privacy regulations, invasion of privacy is no longer a
concern for the direct marketing industry.
Companies find it as easy to come up with a good positioning strategy as to execute it.
Trade promotions are targeted at final buyers.
Jim is planning on buying an expensive HDTV and he realizes that there are few
differences between brands. Jim is displaying complex buying behavior.
Supermarkets sell a limited selection of goods at deep discounts to consumers who pay
membership fees.
As long as a product is not identical to a competitor’s product offering, a company can
introduce, market and sell it without penalty.
Sustainable marketing consists of five principles: consumer-oriented marketing,
customer-value marketing, innovative marketing, sense-of-mission marketing, and
societal marketing.
Marketing researchers can conduct their own searches of secondary data sources by
using mail questionnaires and interviewing individuals.
In the United States, the lines between social classes are not fixed and rigid, but people
can only drop to a lower social class and not move up into a higher one.
Green retailing yields both top- and bottom-line benefits.
While a company can choose to participate in public service activities, doing so has no
impact on public goodwill toward the company.
Price is the most inflexible of the marketing mix elements.
Although television advertising has high absolute costs, its cost per exposure is
relatively low.
While regulations exist to prohibit deceptive pricing practices, in reality, most reputable
sellers do the minimum required to meet the regulations.
A weakness of market research is that it cannot help marketers measure the
effectiveness of pricing changes or promotion activities.
A marketing communications director has overall responsibility for the company’s
communications efforts.
Which of the following is NOT a type of joint venturing?
A) joint ownership
B) management contracting
C) direct export
D) licensing
E) contract manufacturing
If a large retailer sold numerous items below cost with the intention of punishing small
competitors and gaining higher long-run profits by putting those competitors out of
business, the retailer would be guilty of ________.
A) price collusion
B) price fixing
C) predatory pricing
D) competitive pricing
E) penetration pricing
________ refer to sales promotion tools used to persuade resellers to carry a brand, give
it shelf space, promote it in advertising, and push it to consumers.
A) Point-of-purchase promotions
B) Frequency marketing programs
C) Trade promotions
D) Events
E) Coupons and inserts
Marketers now view themselves as ________ that create and share brand messages and
conversations with and among customers across a mix of paid, owned, earned, and
shared communication channels.
A) promotion managers
B) public relations managers
C) sales managers
D) content marketing managers
E) account managers
The learning curve is representative of the ________.
A) per unit cost of output in the long run
B) drop in the average per-unit production cost that comes with accumulated production
experience
C) number of units the market will buy in a given time period, at different prices that
might be charged
D) total market demand resulting from different prices
E) per unit cost of output in the short run
John Deere does very little promoting of its lawn mowers and garden tractors to final
consumers. Instead, John Deere’s sales force works with Lowe’s, Home Depot,
independent dealers, and other channel members, who in turn sell John Deere products
to final consumers. According to this information, which of the following promotion
mix strategies is being used by John Deere?
A) public relations strategy
B) direct marketing strategy
C) push strategy
D) blitz strategy
E) pull strategy
Formed in 1957, ________ set out to create a single European market by reducing
barriers to the free flow of products, services, finances, and labor among member
countries and developing policies on trade with nonmember nations.
A) the Uruguay Round
B) the European Union
C) the European Organization
D) the European Central Bank
E) CAFTA
Which of the following refers to a positive incentive intended to increase the sales force
effort?
A) sales contests
B) prospecting
C) telecommuting
D) sales collateral
E) annual sales plan
Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would
encourage other girls to buy the product. This program is an example of ________.
A) societal marketing
B) the production concept
C) the selling concept
D) partner relationship management
E) consumer-generated marketing
Apollo Couriers, a company providing international express mail services, has a
proactive customer communications team. The primary job of this team is to identify
situations that led to customer dissatisfaction, and then provide quick remedies to fix
the problems. To a great extent, this has helped Apollo in winning customer loyalty. In
this instance, Apollo has benefitted from ________.
A) product differentiation
B) good service recovery
C) multibranding
D) place marketing
E) co-branding
Right after closing, Joshua, a senior sales manager at Halcyon Technologies, called up
the customer to ensure that she was satisfied with Halcyon’s products. By calling the
customer, Joshua also wanted to ensure repeat business. In this instance, Joshua is in the
________ stage of the selling process.
A) follow-up
B) handling objections
C) preapproach
D) closing
E) prospecting
Sanguine Services is a small company that uses a marketing strategy in which its
limited resources are employed to target a large share of two small market segments.
Sanguine most likely uses which of the following marketing strategies?
A) individual marketing
B) one-to-one marketing
C) mass marketing
D) concentrated marketing
E) trigger-based marketing
Through ________, companies today are strengthening their connections with all
partners, from providers of raw materials and components to those involved in the
delivery of final goods and services.
A) supply chain management
B) direct marketing
C) customer relationship marketing
D) customized marketing
E) inventory management
Which of the following is most critical for successful niching?
A) catering to global markets
B) buzz marketing
C) follow-up
D) specialization
E) mass appeal of one idea
Sparex Inc. is a manufacturer of metal bolts that are used by Boilex Inc. to manufacture
heavy machineries. In this instance, Sparex acts as a ________.
A) financial intermediary
B) supplier
C) retailer
D) customer
E) local public
A ________ VMS consists of independent firms at different levels of production and
distribution who join together through formal agreements to obtain more economies or
sales impact than each could achieve alone.
A) corporate
B) contingency
C) contractual
D) communal
E) conventional
Which of the following product mix pricing strategies involves pricing multiple
products to be sold together?
A) product line pricing
B) product bundle pricing
C) optional product pricing
D) by-product pricing
E) captive product pricing
Stop-N-Go , 7-Eleven, and Circle K are examples of ________.
A) department stores
B) convenience stores
C) category killers
D) specialty stores
E) supermarkets
Why do firms have difficulty accessing potential market areas in developing countries,
such as China and India?
A) inadequate distribution systems
B) anti-globalization efforts
C) highly centralized rural markets
D) limited manpower
E) high operating costs
A(n) ________ is a descriptive thought that a person has about something.
A) lifestyle
B) motive
C) belief
D) attitude
E) cognition
The decision-making unit of a purchasing organization is called its ________.
A) value chain
B) buying center
C) customer support system
D) quality center
E) innovation center
Which of the following is the best response a company can make to competitive
threats?
A) continuous innovation
B) surrender to the competitor
C) exit from the market
D) divestment
E) globalization
Marketing management must make important decisions when developing an advertising
program. Which of the following is NOT one of those decisions?
A) evaluating advertising effectiveness
B) developing advertising strategy
C) setting advertising objectives
D) designing products and distribution
E) setting the advertising budget
A ________ firm is one that, by operating in more than one country, gains marketing,
production, research and development, and financial advantages that are not available to
purely domestic competitors.
A) global
B) domestic
C) federally chartered
D) direct investment
E) free trade zone
Laws are passed to define and prevent unfair competition primarily because ________.
A) business executives tend to favor pure monopolies
B) businesses sometimes try to neutralize threatening firms
C) governments in free market economies tend to nationalize ailing firms
D) private lobbying hurts the interests of national and state governments
E) most multinational entities in advanced economies are averse to invest in emerging
markets
Which of the following is NOT a reason that companies use social media?
A) cost effectiveness
B) engagement and social sharing capabilities
C) ease of creating content
D) immediacy and timeliness
E) interactiveness
Refer to the scenario below to answer the following question(s).
The Attic Trunk opened in 1999 as an upscale dress shop in Forest Ridge’s fashionable
shopping district, catering to a wealthy, mature clientele consisting mostly of older,
first-generation Hispanics. Many other specialty shops lined the main avenue over the
next few years. But as Forest Ridge began to attract a more price-conscious, younger,
and more demographically diverse population, the once-popular shopping district was
increasingly perceived as stodgy and snobby by the new segment of customers.
By the mid-2000s, many of these specialty shops suffered financially. Most shops
attracted only tourists who enjoyed browsing through the displays of alligator belts and
shoes, piles of scented soaps, and so on, often laughing at the ridiculously high prices.
Owners of The Attic Trunk had noticed the shifts in buying behavior of customers by
the mid-2000s. In fact, the owners had observed that the once-fashionable shopping
district in Forest Ridge no longer attracted the wealthy, mature clientele. This clientele
had been replaced with price-conscious families with children, a mix of Asian and
African Americans as well as Caucasians.
Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name
apparel, fashion accessories, and jewelry. Other owners followed suit in the late 2000s,
bringing restaurants, an outdoor cafe, and a day spa to the main avenue in Forest Ridge.
Which of the following would each consumer segment attracted to The Attic Trunk
have in common with the other consumer segments?
A) habitual buying behaviors
B) self-concepts
C) AIO dimensions
D) life-cycle stages
E) aspirational groups
Sheffield Cargo serves both consumer and business markets, but most of its revenue
comes from its business customers. Of late, the business customers of Sheffield Cargo
have demanded a change in the packaging of heavy cargo along with a more
sophisticated and user-friendly extranet framework. Sheffield Cargo is under pressure to
offer better products and services or risk losing a huge portion of its customers. This is
an example of ________.
A) a new task
B) a modified rebuy situation
C) a straight rebuy situation
D) trade exchange
E) reverse auction
________ refers to the stage of the business buying process in which the buying
organization decides on and specifies the best technical product characteristics for a
needed item.
A) Performance review
B) General needs description
C) Product development
D) Proposal solicitation
E) Product specification
A seller offers a ________ to trade-channel members who perform certain functions,
such as selling, storing, and record keeping.
A) functional discount
B) storage allowance
C) cash discount
D) promotional allowance
E) quantity discount
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 statements is true of viral marketing?
A) Marketers have significant control over where their viral messages end up.
B) Viral marketing gives consumers online places to congregate, socialize, and
exchange views.
C) Because customers find and pass along the message, viral marketing can be very
inexpensive.
D) In viral marketing, links appear alongside search engine results on sites such as
Google and Bing.
E) Viral marketing messages are blocked by most search engines, security software, and
social networking sites.
Deceptive practices fall into three groups: pricing, promotion, and ________.
A) product
B) placement
C) packaging
D) publicity
E) service
As production workers become better organized and more familiar with equipment, the
average cost per unit tends to decrease with the ________.
A) increase in the diseconomies of scale
B) accumulated production experience
C) decrease in the economies of scale
D) increase in derived demand
E) increase in primary demand
Many buyers prefer multiple sources of supplies ________.
A) to avoid being totally dependent on one supplier
B) to keep companies interested in doing business with them
C) to ensure that suppliers do not become complacent
D) to encourage their salespeople to develop broader networks of contacts
E) to prepare in case of a work stoppage
When would an exclusive dealing contract be legally problematic?
How do marketers measure return on marketing investment? Why is this figure difficult
to assess?
Why and how do companies use workload approach?
What type of research would be the most useful to determine if a 20-percent decrease in
price for a high-end sedan would result in an increase in purchases sufficient to offset
the reduced price? Why?
Explain power in a vertical marketing system.
Identify the traditional direct marketing tools and differentiate them from the digital
direct marketing tools. What is their importance?
How does marketing through online social networks differ from more traditional
marketing?
How can marketers benefit from developing solutions to environmental problems, such
as pollution and raw material shortages?
Describe the types of products that are intensively distributed and provide examples.
What is meant by cultural pollution? Give two examples.
Identify the major sources of external new product ideas and explain why these sources
offer advantages over internal sources.
What role do the four Ps play in consumer behavior?
Give two examples of product bundle pricing.
Why are companies increasingly turning to third-party logistics providers (3PLs)?
Explain why most marketers avoid deceptive practices.
Describe the three characteristics that advertising appeals should have?
Why are demographic factors the most popular bases for segmenting customer groups?
