Which of the following generally does NOT result in a cost competitive advantage?
a. Efficient labor
b. Government subsidies
c. Product design
d. Maintaining older service delivery methods
Global marketing is a oneway street whereby only U.S. companies sell their wares and
services throughout the world.
a. True
b. False
Ethnic segmentation involves segmenting potential customers into neighborhood
lifestyle categories.
a. True
b. False
When conducting research with online research communities, all community interaction
takes place on a customdesigned website.
a. True
b. False
In certain industries, such as apparel eretailing, returns can amount to as much as 40
percent of sales volume.
a. True
b. False
Secondary data refers to information collected for the first time.
a. True
b. False
Both gamification and the unique selling proposition refer to the process of using game
mechanics and a gaming mindset to engage an audience.
a. True
b. False
Which of the following is NOT true of competitive advertising?
a. Firms use competitive or brand advertising when a product enters the growth phase
of the product life cycle.
b. The goal of competitive advertising is to influence demand for a specific brand.
c. Promotion becomes more informative and appeals less to emotions during
competitive advertising phase.
d. Emphasis on branding begins during competitive advertising phase.
Which of the following is a sales practice that involves building, maintaining, and
enhancing interactions with customers to develop longterm satisfaction through
mutually beneficial partnerships?
a. Pricebased selling
b. Adaptive selling
c. Stimulusresponse selling
d. Relationship selling
Which of the following describes the late majority?
a. They adopt a new product because most of their friends have already adopted it.
b. They do not rely on group norms and their adoption is free from pressure to conform.
c. They tend to be younger and above average in income as well as education.
d. They depend mainly on mass media rather than on wordofmouth communication.
Decathlon Corp., a sports shoe manufacturer, launches a new line of sports shoes. To
promote the product, Fournotts Corp. invites its customers to try on the shoes for a
period of one week and get a feel of its features. This is an example of _____.
a. corporate communication
b. sponsorship
c. product placement
d. experiential marketing
Although the number of event marketing and experiential events has decreased in
recent years, the most growth comes from the world’s smallest and newest brands.
a. True
b. False
Microtargeting is an effective tool for online retailing.
a. True
b. False
The organizations that are frequently noted for delivering superior customer value and
providing high levels of customer satisfaction assign employees to teams and teach
them teambuilding skills.
a. True
b. False
Which of the following indicates a benefit of outsourcing?
a. Increased corporate growth
b. Chances of increased production delays
c. Rising wages in the developing world
d. Decreases efficiency
Push strategy stimulates consumer demand to obtain product distribution.
a. True
b. False
Google+ Hangouts, a popular facet of the fledgling Google+ social network, allows
individuals around the world to video chat in real time.
a. True
b. False
Which of the following is true about inflation?
a. Inflation is an indicator of the decrease in the value of money.
b. During periods of low inflation, businesses that seek to increase their profit margins
can do so by increasing their prices significantly.
c. Inflation is a period of economic activity characterized by negative growth.
d. Inflation occurs when the gross domestic product falls for two consecutive quarters.
As long as the ads are not overly intrusive, most users opt to play free versions of
games with ads over paid versions that do not have ads.
a. True
b. False
When considering the newproduct development process, which of the following
statements is true of screening?
a. It eliminates ideas that are inconsistent with an organization’s newproduct strategy.
b. It calculates preliminary figures for demand, cost, sales, and profitability.
c. It involves getting consumer reactions to visual representations of a proposed
product.
d. It involves making cosmetic or functional changes to existing products.
All of the following are advantages of defining a firm’s mission in terms of benefits that
customers seek except for which one?
a. Keeping the firm focused on its customer, instead of becoming preoccupied with its
internal needs
b. Encouraging innovation, creativity, and developing new ways to satisfy customer
expectations
c. Stimulating an awareness of changes in customer desires and preferences so that
product offerings remain relevant
d. Satisfying customer wants and needs may not always be in the best interests of
society as a whole
With regard to social media, which statement is true of different categories of
interactive media?
a. In an interactive space, media are earned through word of mouth or online buzz.
b. Owned media include viral videos, retweets, comments on blogs, and other forms of
customer feedback.
c. Consumers passing along brand information in the form of retweets and
recommendations is an example of paid media.
d. Earned media generated in an interactive space include display advertising and paid
search words.
Based on age segmentation of a target market, which group is at peak earning power but
seeks to spend only on products that provide the best value for money?
a. Generation X
b. Generation Y
c. Generation Z
d. Baby Boomers
Social influences are most likely to influence consumer buying decisions by:
a. reducing a feeling of perceived risk or uncertainty regarding a purchase.
b. prompting impulse purchase decisions.
c. encouraging consumers to recognize their feelings and formulate opinions.
d. shaping human behavior and transmitting it from one generation to the next.
Which of the following ethical theories believes that people should abide by their
obligations and duties when stuck in an ethical dilemma?
a. Deontological theory
b. Moral relativism theory
c. Casuist ethical theory
d. Utilitarian ethical theory
When a domestic firm buys part of a foreign company or joins with a foreign company
to create a new entity, it is called _____________.
a. licensing
b. contract manufacturing
c. a joint venture
d. a direct foreign investment
Which of the following statements is true of rule utilitarianism?
a. Ethical truths depend on the individuals and groups holding them.
b. Decisions must benefit the maximum number of people through the fairest and most
universally just means available.
c. A current ethical dilemma should be compared with similar examples and outcomes
before deciding on a course of action.
d. Intuition and personal feelings should guide decision making when faced with ethical
dilemmas.
Which of the following is the most important factor in influencing the distribution
strategy of a timedependent service provider?
a. Scheduling
b. Tangible cues
c. Price bundling
d. Customization
An advantage of business markets having fewer customers in comparison with
consumer markets is that it
a. reduces the attention required to be given to customers.
b. makes it easy to identify prospective buyers.
c. reduces the dependency on distributors for product delivery.
d. increases product diversity.
Kelly’s Kitchen strives to improve its customer service and makes sure that its
customers enjoy the food and ambience at the restaurant. The restaurant’s manager
gathers and assesses customer reviews from various online sources and then evaluates
their opinions and sentiments. This scenario illustrates the process of _____.
a. personal selling
b. social media monitoring
c. market basket analysis
d. social commerce
Which of the following statements is true of threedimensional printing?
a. It is expected to lead businesses to act in ways that will increase their carbon
footprints.
b. It cannot be used in the automobile parts, biomedical, and fast food industries.
c. It will lead to the mass production of standardized goods rather than custom products.
d. It will nearly eliminate the need to transport finished goods to distribution centers
and retailers.
Wesley Electronics Inc. manufactures electronic gadgets. Its marketing team spent a
great deal of money on advertising to create awareness about the company’s products
among potential customers and employs a variety of methods, such as print, broadcast,
and online advertising. According to the steps involved in segmenting a market, Wesley
Electronics most likely is:
a. selecting a market or product category for study.
b. designing and implementing its marketing mix.
c. profiling and analyzing market segments.
d. selecting segmentation descriptors for a market.
Which of the following is a difference between component parts and supplies?
a. Component parts require extensive processing before they become part of another
product, whereas supplies do not.
b. Component parts are replaced items, whereas supplies are finished items.
c. Component parts become part of a final product, whereas supplies do not.
d. Component parts are inexpensive when compared to other business products,
whereas supplies are expensive.
The best order fulfillment processes increase order cycle time.
a. True
b. False