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Concept testing is a marketing research project that attempts to measure consumer
attitudes and perceptions about the new product idea.
a. True
b. False
Kiera’s dog walking business is booming, and she is interested in expanding. In order to
expand, her company needs more customers, and the demand for dog walking in her
neighboring communities must increase in order for her to generate a profit. Her best
friend, a local celebrity, suggests that she should consider marketing her services.
Because Kiera understands that there are specific challenges associated with developing
advertising objectives for services, she is very careful about how to advertise her dog
walking services. In the end, she decides to develop a logo for her company so
customers can associate it with the services she provides.
How did Kiera make her intangible services more marketable?
a. She used a slogan.
b. She recruited new customers.
c. She enhanced her brand image.
d. She got a celebrity endorsement.
e. She used a popular logo that people recognized.
Buying, selling, transporting, and storing are known as the facilitating functions of
marketing because they represent the exchange and physical distribution functions.
a. True
b. False
_____ results from management’s failure to recognize the scope of its business.
a. utility
b. buzz marketing
c. exchange process
d. seller’s market
e. buyer’s market
f. marketing myopia
g. social responsibility
h. relationship marketing
i. person marketing
j. place marketing
k. event marketing
l. organization marketing
m. interactive marketing
n. lifetime value of a customer
o. social marketing
p. onetoone marketing
q. strategic alliances
r. notforprofit organizations
s. ethics
t. mobile marketing
u. wholesalers
v. transactionbased marketing
A market penetration strategy seeks to increase sales of existing products in existing
markets.
a. True
b. False
The term “tariff” refers to the tax exemption granted to domestic producers in order to
increase their competitiveness in the international markets.
a. True
b. False
In the business-goods market, full-function merchant wholesalers are also known as
_____.
a. drop shippers
b. mail-order wholesalers
c. cash-and-carry wholesalers
d. industrial distributors
Because you learned so much while studying for your marketing degree, you plan to
reach out to former professors to help forecast sales for your company's new product.
All of them are recognized experts in the industry. If they participate, you will use the
qualitative forecasting approach known as:
a. A sales force composite
b. A jury of executive opinion
c. The Delphi technique
d. Trend analysis
e. An external insight composite
According to the AIDA concept, which of the following is the first function of a
promotional message?
a. Arousing interest in the good or service
b. Gaining the potential consumer’s attention
c. Stimulating desire by convincing the potential buyer of the product’s ability to satisfy
his or her needs
d. Producing an action in the form of a purchase or a more favorable attitude that may
lead to a future purchase
The logistics manager of a major manufacturer is aware that there is a lack of
communication and coordination among the physical distribution departments that he is
overseeing. Specifically, the materials handlers are lobbying upper management for a
packaging system that would make their department more efficient; but it would
increase costs for other departments exponentially because of the adjustments they
would need to make to accommodate the new packaging system. There is certainly
room for discussion on the matter for the future but, for now, the manager has to ward
off a problem that threatens to be serious. What is the manager's concern?
a. logistics
b. cost control
c. underachievement
d. inventory control
e. suboptimization
According to retailers, the purpose of slotting allowances is to cover their losses if
products don’t sell.
a. True
b. False
When Apple launched the iPod it quickly became the most popular digital music player
on the market and dominated sales. Now, sales of the iPod are lower as more consumers
adopt smart phone devices which enable them to store and listen to music. What stage
of the product life characterizes the iPod?
a. decline
b. maturity
c. introduction
d. growth
After years of using full-cost pricing in a niche market for luxury watches, you find
your competition has slowly increased its market share each year with discounted
prices. Focus groups have confirmed that the image of your watches is still one of
success and prestige, but more people are willing to consider substitutes. Incremental
cost-pricing could enable you to increase profits and unsettle your competitor's
complacency. You know that changing to incremental-cost pricing does have a
significant downside problem. But you are also aware that you can prevent that from
happening.
What is the downside problem and which solution can you take to prevent its
happening?
a. downside is running out of product. solution is to ramp up your production capacity
to meet the demand of customers wanting lower prices
b. downside is lack of audience awareness. solution is to create high-energy ads to
appeal to young customers
c. downside is the tax consequences. solution is to tell the CEO that a change in your
pricing strategy could lead to an IRS audit
d. downside is that the whole market could change. solution is to accept the fact that the
wholesale and retail prices of used watches could drop markedly
e. downside is losing your niche market. solution is to take solid measures to isolate
your markets for lower-priced watches from your higher-priced models
The grassroots marketing approach relies on conventional and traditional marketing
strategies.
a. True
b. False
Most people don't think of what they purchase from their yoga instructor as a product.
But because you're a marketer, you realize that a yoga class is a product because it
delivers _____.
a. effective positioning
b. consumer want satisfaction
c. Maslow's hierarchy of needs
d. cost efficiency
e. competition
Interactive promotions put customers in control because they can gain immediate access
to key product information when they want it.
a. True
b. False
Test marketing a new product is expensive and communicates company plans to
competitors prior to its full-scale introduction.
a. True
b. False
Prior to the 1930s, most of the marketing research involved gathering written
testimonials from purchasers of firms’ products.
a. True
b. False
Zero Tech, a provider of game programming, directed its highly skilled and technically
sound salespeople to visit customers without prior appointment and make a sales pitch
on the spot. Which of the following techniques was used by the sales staff?
a. Creative selling
b. Inbound telemarketing
c. Cold calling
d. Missionary selling
The term Internet penetration refers to the percentage of a region’s population who use
the Internet.
a. True
b. False
List the four eras in marketing history in chronological order. Briefly describe the
philosophy behind each era.
Sysco Foods provides thousands of food service products to restaurants, hotels,
hospitals, and schools. Sysco purchases their products from manufacturers such as
Hormel and then markets them to their business customers. Sysco Foods is known as
a(n):
a. wholesaler
b. retailer
c. producer
d. logistics specialist
The use of social media portals to create a positive influence on consumers or business
customers toward an organization’s brand, products, public image, or website is known
as _____.
a. influencers
b. social networking sites
c. social media monitoring
d. app
e. online forum
f. demographics
g. social media tool
h. return on investment
i. microblog
j. social media marketing
k. social media
l. transparency
m. social media marketing plan
n. bookmarking site
o. social media strategist
p. social media analytics
q. social media platform
r. content marketing
s. social news site
t. QR codes
Which of the following entities is responsible for all phases of a development project,
including screening decisions, developing product specifications, and coordinating
product testing?
a. Brand extension team
b. Business analysis task force
c. Category management committee
d. New--product department
_____ seeks to discover the cause of a specific problem by discussing the problem with
informed sources and by examining data from other information sources.
a. big data
b. exploratory research
c. secondary data
d. primary data
e. sampling
f. hypothesis
g. simple random sample
h. interpretative research
i. focus group
j. marketing decision support system
k. key performance indicator
l. predictive analytics
m. metrics
n. marketing research
o. quota sample
p. test marketing
q. cluster sample
r. data mining
s. convenience sample
t. controlled experiment
The right blend of product lines and individual products allows a firm to maximize
sales opportunities within the limitations of its resources.
a. True
b. False
The _____ component of attitude specifically involves tendencies to act in a certain
manner.
a. cognitive
b. affective
c. behavioral
d. intellectual
The global status of an industry will influence a firm’s pricing strategies in international
markets.
a. True
b. False
When Microsoft introduced the latest edition of Age of Empires III, it provided a free
download of one of the game scenarios. Addition of this link is most likely to influence
which of the following characteristics of the product innovation?
a. Complexity
b. Associability
c. Possibility of trial use
d. Compatibility
Which of the following functions poses a great challenge to sales managers?
a. Training
b. Recruitment and selection
c. Supervision
d. Organization
A hypothesis sets the stage for more in-depth research by further clarifying what
researchers need to test.
a. True
b. False
Which of the following refers to connecting buyers and sellers electronically through
interactive computer systems?
a. Electronic marketing
b. EDI
c. Online marketing
d. Virtual private networks
e. Social media
The follow-up step in the sales process often determines whether an individual who has
made a recent purchase will become a repeat customer.
a. True
b. False
