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It's often less expensive to attract new customers than to market different products to
existing customers.
a. True
b. False
The term industrial distributor commonly refers to intermediaries in the business market
that take title to the goods.
a. True
b. False
Which of the following components of the marketing mix focuses on deciding the
goods and services a firm should offer in order to meet the needs of its customers?
a. Product strategy
b. Distribution strategy
c. Promotional strategy
d. Pricing strategy
Product line extension refers to the development of items that would expand the width
of the product mix a company has to offer.
a. True
b. False
A car manufacturer has developed different models of a car to suit the pricing needs of
different classes of customers. It offers a low-end version for price conscious customers
and luxury cars for high-end customers. This is an example of _____ pricing.
a. promotional
b. psychological
c. leader
d. product-line
Majority-minority counties are places where more than half the population is a single
racial or ethnic group other than non-Hispanic white.
a. True
b. False
A good marketing plan revolves around an efficient, flexible, and adaptable
____________.
a. Strategic plan
b. Marketing strategy
c. Marketing mix
d. Mission statement
e. SWOT Analysis
Which of the following statements is true about how consumers use the Internet
according to the text?
a. Consumers aged 55 and older are the fast growing age group using Twitter.
b. Consumers aged 30 to 54 are most likely to check their Facebook pages before
getting out of bed in the morning.
c. Consumers in China rarely use the Internet for downloading music.
d. Consumers in the United States do not trust the Internet for maps or driving
directions.
A firm describes its overall goals and operational scope in its standard operating
procedures manual.
a. True
b. False
Modified rebuys resemble _____ in consumer markets.
a. impulsive buying behavior
b. limited problem solving
c. extended problem solving
d. routinized response behavior
_____ is an unconventional, innovative, and low-cost marketing techniques designed to
get consumers’ attention in unusual ways.
a. noise
b. advertising
c. promotion
d. publicity
e. sales promotion
f. guerrilla marketing
g. posttesting
h. split runs
i. cooperative advertising
j. marketing public relations
k. media scheduling
l. pretesting
m. informative advertising
n. persuasive advertising
o. retail advertising
p. missiles
q. cross-promotion
r. interactive advertising
s. sponsorship
t. institutional marketing
The process through which a firm attempts to control downstream distribution is called
_____.
a. distribution channel
b. forward integration
c. logistics
d. dual distribution
e. direct selling
f. intensive distribution
g. selective distribution
h. exclusive distribution
i. tying agreement
j. backward integration
k. administered marketing system
l. corporate marketing system
m. contractual marketing system
n. private carriers
o. materials handling system
p. franchise
q. common carriers
r. upstream management
s. suboptimization
t. downstream management
The practice of brand licensing expands a company’s exposure in the marketplace.
a. True
b. False
The executive summary of a social media marketing plan is said to be effective when it
gives compelling reasons as to why the plan should be adopted.
a. True
b. False
Closed sales territories are exclusive geographic selling region of a distributor.
a. True
b. False
Wholesaling intermediaries help producers in transporting by:
a. reporting on competitors’ activities and industry trends.
b. purchasing in economical truck load lots and then reselling in smaller quantities.
c. offering research inputs through regular contacts with retail and business buyers.
d. reducing their inventory turnover rates.
Which of the following products is typically a wife-dominant purchase?
a. Apartment
b. Auto insurance
c. Children’s clothing
d. Furniture
Which of the following statements is indicative of a second mover strategy?
a. Entering new markets with existing products
b. Making significant innovations that turn old products into new ones
c. Observing closely the innovations of first movers and then improving on them
d. Entering new markets with new products before any other entrants
Researchers rarely use an entire population for a study, unless the total population is
small, because of the high costs associated with it.
a. True
b. False
Total revenue is determined by multiplying the product’s selling price and the number
of units sold.
a. True
b. False
The newest regulatory frontier in the United States is cyberspace, where state and
federal regulators are investigating ways to police the Internet and online services.
a. True
b. False
For U.S. based firms, Mexico is an attractive location for nearshoring operations.
a. True
b. False
_____ are groups of retail outlets that operate under central ownership and management
and handle the same product lines.
a. Specialty stores
b. Chain stores
c. Variety stores
d. Department stores
Exclusive distribution allows greater market coverage than any other distribution
strategy.
a. True
b. False
Before accepting a job offer from a restaurant chain, you want to be sure your future
employer is in tune with the socialcultural environment of the United States. You get
worried when your interviewer makes a comment on this topic which is clearly
inaccurate. What does she say?
a. We need to cater to retirees, because consumers are getting older.
b. We may be able to raise prices in the future, because consumers are getting more
affluent.
c. We need to be welcoming to all ethnic groups, because consumers are becoming
more culturally diverse.
d. We need to cater to large families, because the birthrate is rising.
e. We should buy ecofriendly products, because consumers are concerned about the
natural world.
You are creating an ethics compliance program for your corporation. Which of the
following issues is it unnecessary for you to address?
a. Exclusive territories
b. Product warranties
c. Price fixing
d. Cannibalization
e. Promotional allowances
_____ is the practice of developing individual offerings that appeal to different market
segments while remaining closely related to the existing product line.
a. trade dress
b. brand preference
c. brand insistence
d. generic product
e. family brand
f. brand equity
g. product diversification
h. trademark
i. brand extension
j. consumer innovator
k. brand name
l. private brand
m. brand manager
n. universal product code (UPC)
o. cannibalization
p. product liability
q. captive brand
r. brand mark
s. line extension
t. label
The Nestle Company is celebrating 150 years of success and has evolved from a single
product company - sweet condensed milk to over 2000 brands across such categories of
baby food, bottled water, pet food, drinks, ice cream, nutritional foods, and chocolate.
These various product categories reflect the product ______ of Nestle.
a. width
b. depth
c. complexity
d. extension
A basic measurement of website’s effectiveness is the conversion rate, which is the:
a. number of people who, having previously visited the site, return to it for additional
visits.
b. proportion of visitors who mark the website as a favorite.
c. percentage of people presented with a banner ad who click on it.
d. percentage of website visitors who make purchases.
Mobile marketing is a term used to describe marketing messages sent via wireless
technology.
a. True
b. False
Which of the following best represents the complete sequence of suppliers and
activities that contribute to creating and delivery of merchandise?
a. Supply chain
b. Warehousing
c. Direct channeling
d. Materials handling system
Clayten Technologies has set up a sales team exclusively to serve one of its clients who
account for a major share of its business. This strategy is an example of:
a. vertical supply chain integration.
b. vendor-managed selling.
c. quick-response merchandising.
d. national account selling.
The strategic business unit (SBU) concept is best identified as a:
a. planning tool that separates tactical and operational issues for analysis.
b. strategic approach used primarily to separate marketing costs from production
expenses.
c. marketing planning tool that best suits the needs of large, diversified organizations.
d. marketing approach appropriate for small enterprises producing a single product.
The Federal Trade Commission was established to facilitate trade by removing tariffs
and other trade barriers among Canada, Mexico, and the United States.
a. True
b. False
Joining a local bowling league for social interaction is an attempt to meet _____ needs.
a. self-actualization
b. belongingness
c. physiological
d. safety
