Allen Inc., which produces component parts for elevators, has colocated its engineering,
logistics, and procurement divisions. Which of the following describes its
demandsupply integration?
a. The promises that salespeople make to customers present challenges to the
company’s logistics arm.
b. Costs, more than customer specifications, determine which raw materials are placed
into production.
c. The company gains efficiencies from ordering and using only those materials that
lead directly to sales.
d. Raw material inventories are always stocked well above the levels dictated by
production capacity.
Which of the following is NOT true of publicity?
a. Publicity is the effort to capture media attention.
b. Corporations usually prefer not to generate publicity through press releases.
c. Corporate donations and sponsorshipscreate favorable publicity for companies.
d. Both profit and notforprofit organizations seek publicity.
_____ is the element in the promotional mix of a marketing plan that evaluates the
public’s attitudes, identifies issues that may elicit their concern, and executes programs
to gain their understanding and acceptance.
a. Personal selling
b. Cooperative advertising
c. Sales promotion
d. Public relations
Many nonprofit organizations are explicitly or implicitly prohibited from advertising,
thus limiting their promotion options.
a. True
b. False
Marketers know that reinforcement and repetition boost ___________________.
a. selfesteem
b. learning
c. selfimage
d. perception
Profitoriented pricing objectives include _____.
a. target return on investment
b. target market share
c. meeting competitors’ prices
d. status quo pricing
Effective sales management begins with
a. determining sales goals to be met by the salesforce.
b. determining the most efficient structure for the sales force.
c. specifying the sales force size.
d. designing a compensation plan.
The practice of charging a very low price for a product with the intent of driving
competitors out of business or out of a market is called ______________.
a. status quo pricing
b. predatory pricing
c. price skimming
d. penetration pricing
Which of the following is a characteristic of nicheoriented type of shopping bot?
a. It searches a wide range of product categories.
b. The sites it accesses operate using a Yellow Pages type of model.
c. Consumers can find the list of all retailers.
d. It searches for prices for only one type of product.
Big data refers to the exponential growth in the volume, variety, and velocity of
information and the development of complex, new tools to analyze and create meaning
from such data.
a. True
b. False
The supplies are the products which are used directly in manufacturing other products. .
a. True
b. False
If the director of a company aspires to become its managing director, works hard toward
that goal, and achieves the position. Which of his needs is fulfilled according to
Maslow’s hierarchy of needs?
a. Physiological need
b. Safety need
c. Social need
d. Selfactualization need
Trower Inc. has launched a new smartphone in two different versions. Both variants of
the smartphone have a similar design but have different hardware specifications. The
company uses this strategy to make this smartphone more universally affordable. In this
scenario, Trower Inc. is most likely using __________________________.
a. usagerate segmentation
b. income segmentation
c. gender segmentation
d. age segmentation
The size of the business market in the United States and most other countries
substantially exceeds that of the consumer market.
a. True
b. False
Which of the following statements is true of simulated market testing?
a. It is often conducted on prototype models during the development stage.
b. It is a useful tool for implementing simultaneous product development.
c. It is the final stage in the newproduct development and marketing process.
d. It is used to monitor shopper behavior to assess a product’s likely performance.
Tamery Corp. is engaged in marketing various goods and services. It buys products
from various manufacturers and sells them to businesses and end consumers. Given this
information, Tamery Corp. is said to be selling consumer products if:
a. it sells books to students.
b. it sells spare parts to automobile manufacturers.
c. it sells laptops to an IT company.
d. it sells printers to a partnership firm.
An operating decision is unlikely to have a great impact on the longrun profitability of a
company.
a. True
b. False
It really does not matter whether the product is “new to the world” or some other
category of new product. If it is new to a potential adopter, it is an innovation in this
context.
a. True
b. False
Media sharing sites allow users to decide which content is promoted on a given website
by voting that content either up or down on a ranking scale.
a. True
b. False
The authority that employees are given to swiftly solve customers’ problems is referred
to as _______.
a. empowerment
b. teamwork
c. customer value
d. training
__________________ is the practice of modifying products so those that have already
been sold become obsolete before they actually need replacement.
a. Product modification
b. Repositioning
c. Product line extension
d. Planned obsolescence
A manufacturer making a choice between too few and too many outlets is essentially
deciding between providing ______.
a. convenience to customers and keeping costs to the company low
b. quality products to customers and keeping costs to the company low
c. convenience to customers and diversifying into other businesses
d. customers an online shopping option and having an exclusive brand
Which term refers to direct, facetoface communication between two or more people?
a. Mass communication
b. Interpersonal communication
c. Message transmission
d. Encoding
The _____ is the combination of advertising, personal selling, sales promotion, social
media, and public relations and is used to reach the target market and fulfill an
organization’s overall goals.
a. product mix
b. retailing mix
c. distribution mix
d. promotional mix
Which of the following is true about earned media?
a. The idea behind earned media is to get people talking about the brand—whether
through media coverage or through word of mouth.
b. Earned media includes magazine, outdoor, radio, newspaper advertising, or display
advertising on a website.
c. Earned media is controlled by the brand but continuously keeps the customer and his
or her needs in mind as it creates videos, blog posts, contests, photos, and other pieces
of content.
d. Earned a new form of promotional tactic where brands are becoming publishers of
their own content in order to maximize the brand’s value to customers as well as
increase their search rank in Google.
Gypsy Foods Inc. is a multinational food and beverage company. Its product labels are
colorful and project the words “new” and “improved” along with the product’s name.
The packages do not provide many details about the product’s ingredients. In this case,
Gypsy Foods is using _____.
a. persuasive labeling
b. informational labeling
c. descriptive labeling
d. grade labeling
Concept tests are considered relatively precise predictors of success for new products
that are not copycat items, are not easily classified into existing product categories, and
do not require major changes in consumer behavior.
a. True
b. False
Companies that focus on supply chain management commonly report ______.
a. higher packaging costs
b. lower warehousing costs
c. lower logistical flexibility
d. lower revenues
Which method of setting advertising objectives specifies that all objectives should
precisely define the target audience, the desired percentage change (in some specified
measure of effectiveness), and the time frame in which that change is to occur?
a. The DAGMAR approach
b. The AIDA model
c. BCG matrix
d. SWOT analysis
Which statement is true of agents and brokers?
a. They take title to the goods and services they market.
b. They represent manufacturers’ products to potential customers.
c. They often determine the terms of the sale.
d. They get the same fee, regardless of sales volume.
Informative promotion typically becomes the main promotion goal when the product
enters the growth stage of its life cycle.
a. True
b. False
Which of the following is true of nonprofit organizations?
a. The cost of government (i.e., taxes) has become a big item in the American family
budget but remains less than health care.
b. Together, federal, state, and local governments collect tax revenues that amount to
almost half of the U.S. GDP.
c. Nonprofit organizations do not include private museums, theaters, schools, and
churches.
d. Nonprofit services vary greatly from producer to producer and from day to day, even
from the same producer.
Consumers are more likely to perceive the value of a product to be less than its price tag
says if the product’s
a. price is set too high in their minds.
b. manufacturer gains very little profit from the product.
c. demand is inelastic.
d. demand and supply attain the state of price equilibrium.
A _____ is used to manufacture other goods or services, to facilitate an organization’s
operations, or to resell to other customers.
a. consumer product
b. retail product
c. business product
d. convenience product
Chipotle has become popular with a variety of people. It recently identified a primary
customer segment in Millennials. To win over this demographic group, traditional
media is less authentic in the perception of Millennials, therefore, Chipotle does not use
traditional media, and its marketing and promotion focus on maintaining a large online
and social media presence. Here Chipotle is likely to use:
a. undifferentiated targeting.
b. concentrated targeting.
c. multisegment targeting.
d. differentiated marketing.