Your coffeehouse is struggling to build a customer base, despite your prime location
adjacent to a big university. When you confide in your former marketing professor, he
tells you the problem is with insufficient time utility. How can you address this aspect
of your marketing?
a. Encourage customers to relax and spend more time in the coffeehouse.
b. Set up a kiosk in the campus bookstore.
c. Lower prices over time.
d. Open earlier in the morning.
e. Create a beansbymail program to reduce people’s coffee shopping time.
Compared to undifferentiated marketing, the firm that practices differentiated marketing
may generally expect:
a. less sales by segment.
b. lower total production costs.
c. greater promotional costs.
d. lower inventory costs.
When a producer grants exclusive rights to a wholesaler or retailer to sell its products in
a specific geographic region it practices intensive distribution.
a. True
b. False
Baier Oil Co. encourages consumers to reduce oil consumption by engaging in
environmentally friendly commuting through its promotional campaigns. It also
provides tips for people to employ green commuting. These measures employed by the
company to reduce the demand for oil shows that they are engaging in:
a. socially responsible investing.
b. demarketing.
c. product redesigning.
d. green marketing.
In which of the following market structures individual firms have the highest control
over product prices?
a. Pure competition
b. Monopolistic competition
c. Oligopoly
d. Monopoly
Ramon is a sales representative for a medical device company and works with
orthopedic surgeons. During his discussions with surgeons about their work and the
type of tools or devices that would help them perform better, he began to receive
several interesting suggestions that Ramon passed along to the new product
development team. What stage in the new–product development process does this
represent?
a. idea generation
b. screening
c. development
d. test marketing
Although cost effective, an online focus group _____.
a. does not generate immediate results
b. does not allow the moderator to see body language or nonverbal cues
c. encourages the testing of sample products
d. generates a solid representative sample
Closing, in which the salesperson asks the customer for a buying commitment, is the
last step in the sales process.
a. True
b. False
Jill needs to motivate her promotion team to focus not just on individual messages, but
on the benefits of integrating all of the firm’s marketing communications. Choose the
benefits that Jill should discuss.
a. Looking at the components of the promotion mix from the customer’s point of view
b. Reducing information overload
c. Achieving competitive advantage based on synergy
d. Creating a unified brand personality
e. Reducing interdependence among the elements of the promotion mix
Installations are major capital investments in the B2B markets and they are often
designed specifically for the purchasers.
a. True
b. False
Mass merchandisers usually provide the same depth of assortment as a department store
within each product line.
a. True
b. False
You feel strongly about working for a socially responsible company, so you are pleased
when a prospective employer brings this up. He shows you a set of statements that are
posted in all the firm’s offices to remind people of the basic steps in the social
responsibility pyramid. Choose the statements that appear in this set.
a. Be profitable.
b. Obey the law.
c. Be ethical.
d. Be a good corporate citizen.
e. Put efficiency first.
In a buyer partnership, the supplier must meet the unique needs of the purchaser in
order to make the relationship successful.
a. True
b. False
The evaluative criteria used by consumers in the decision-making process may be:
a. set aside if the consumer finds a better means of making the purchase decision.
b. used to identify alternative brands for consideration and possible purchase.
c. invoked during the first stage of the consumer decision process.
d. objective facts or subjective opinions about the alternatives.
Makers of generic products are dependent on brand loyalty for their marketing success.
a. True
b. False
_____ is a type of personal selling in which a salesperson joins with specialists from
other functional areas of the firm to complete the selling process.
a. span of control
b. field selling
c. inside selling
d. order processing
e. virtual sales team
f. team selling
g. approach
h. creative selling
i. presentation
j. sales promotion
k. premium
l. coupon
m. network marketing
n. cold calling
o. expectancy theory
p. over-the-counter selling
q. missionary selling
r. relationship selling
s. push money
t. consultative selling
Which of the following statements regarding the marketing era is true?
a. Marketing and selling would no longer be considered synonymous terms.
b. Marketing was relegated to a supplemental role performed after the production
process.
c. The marketing concept was linked to a shift from a buyer’s market to a seller’s
market.
d. Business success often was defined solely in terms of production successes.
Which of the following is true of expense items purchased by organizational buyers?
a. The cost of these products is charged against the income of the company in the year
of purchase.
b. The net income of these products is determined by charging a portion of their cost
against the company’s annual revenue.
c. These items are long lived business assets that must be depreciated over time.
d. All major expenses such as setting up new plants, equipments and machinery are
included in this category.
Which of the following phases in the development of a social media marketing
campaign involves the selection of social media platforms and social media tools to be
used to reach the target audience?
a. Setting goals
b. Developing strategies and choosing tactics
c. Producing content
d. Implementing the plan
Brand recognition is the ultimate stage in brand loyalty that leads consumers to refuse
alternatives and search extensively for the desired merchandise.
a. True
b. False
Long deflationary periods can cause a freefall in business profits, lower returns on most
investments, and widespread job layoffs.
a. True
b. False
Assume that a firm would like to expand its product line. A complete expansion would
cost $100 million, but the firm can only raise $75 million in financing. This is best
classified as a(n):
a. constraint.
b. opportunity.
c. threat.
d. instance of leverage.
Indirect competition occurs among marketers of:
a. similar products.
b. products that satisfy different needs.
c. products that can be easily substituted.
d. products that belong to different categories.
Gourmet restaurants and fast food chains cater to the same want satisfaction-a place to
eat. However, at the gourmet restaurants you experience finely prepared cuisine served
by a highly trained wait staff while at the fast food chains you may have to serve
yourself. Which of the following characteristics of services best represents this
difference?
a. Services are intangible.
b. Companies cannot easily standardize services.
c. Services are perishable.
d. Service standards show wide variations.
The Internet is an attractive option for business buying and selling as orders placed over
the Internet contain fewer errors compared to handwritten ones.
a. True
b. False
The Columbia Sportswear Company decides to produce a line of jackets embroidered
with the names of all of the NFL teams. For doing so, Columbia must first obtain an
authorization from the teams and/or the league before using the trademarked names.
This is an example of brand licensing.
a. True
b. False
A schedule of the amounts of a firm’s product that consumers will purchase at different
prices during a specified time period is referred to as _____.
a. demand
b. supply
c. surplus
d. ration
Price setting is based on the marketer’s ability to strike a balance between desired
profits, and the customer’s perception of a product’s value.
a. True
b. False
With increased availability of information, rivalry heats up among competitors who try
to differentiate themselves from the crowd.
a. True
b. False
A VMS that coordinates channel activities through formal agreements among
participants is called a(n) _____ marketing system.
a. corporate
b. community
c. administered
d. contractual
_____ is an indirect selling method in which salespeople promote goodwill for the firm
by educating consumers and providing technical and operational assistance.
a. span of control
b. field selling
c. inside selling
d. order processing
e. virtual sales team
f. team selling
g. approach
h. creative selling
i. presentation
j. sales promotion
k. premium
l. coupon
m. network marketing
n. cold calling
o. expectancy theory
p. over-the-counter selling
q. missionary selling
r. relationship selling
s. push money
t. consultative selling
A value-added service is a basic service that customers normally receive and expect.
a. True
b. False
Barnes and Noble encourages customers to pay $10 annually to become “members” in a
loyalty program which rewards them by discounting their purchases. Barnes and Noble
utilizes the membership program to analyze customer buying habits and routinely
recommends books, magazines or other products which fit their purchasing profile.
What type of marketing is Barnes and Nobles using?
a. micromarketing
b. undifferentiated marketing
c. concentrated marketing
d. differentiated marketing
Dell Computer offers a variety of desk top, tablet and laptop computers. One popular
product line is Dell’s Alienware – built for gamers with high speed processors, enhanced
memory and special graphics cards. What marketing principle is Dell utilizing with its
Alienware product line?
a. market segmentation
b. marketing concept
c. geographic segmentation
d. profit-oriented segmentation