After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had
kept every promise it made when he booked the room, meeting all his needs. He added
that it was a “thoroughly comfortable and opulent experience.” According to Young &
Rubicam’s Brand Asset Valuator, this reflects brand ________.
A) valuation
B) esteem
C) relevance
D) differentiation
E) knowledge
According to the “Privacy Promise to American Consumers” program, DMA members
need to comply with which of the following consumer privacy rules?
A) agree to notify customers when any personal information is rented, sold, or
exchanged with others
B) offer to register all customers in the National Do Not Call Registry
C) make sure that consumers are adhering to the Children’s Online Privacy Protection
Act
D) educate consumers on the Can Spam legislation
E) include the advertising option icon to let consumers know why they are being
targeted
Which of the following is an example of an economic community?
A) NATO
B) BRIC
C) CAFTA
D) GATT
E) WTO
Companies can identify their competitors from both ________ points of view.
A) industry and market
B) product and customer
C) customer and location
D) location and product
E) product and strategy
Refer to the scenario below to answer the following question(s).
The Attic Trunk opened in 1999 as an upscale dress shop in Forest Ridge’s fashionable
shopping district, catering to a wealthy, mature clientele consisting mostly of older,
first-generation Hispanics. Many other specialty shops lined the main avenue over the
next few years. But as Forest Ridge began to attract a more price-conscious, younger,
and more demographically diverse population, the once-popular shopping district was
increasingly perceived as stodgy and snobby by the new segment of customers.
By the mid-2000s, many of these specialty shops suffered financially. Most shops
attracted only tourists who enjoyed browsing through the displays of alligator belts and
shoes, piles of scented soaps, and so on, often laughing at the ridiculously high prices.
Owners of The Attic Trunk had noticed the shifts in buying behavior of customers by
the mid-2000s. In fact, the owners had observed that the once-fashionable shopping
district in Forest Ridge no longer attracted the wealthy, mature clientele. This clientele
had been replaced with price-conscious families with children, a mix of Asian and
African Americans as well as Caucasians.
Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name
apparel, fashion accessories, and jewelry. Other owners followed suit in the late 2000s,
bringing restaurants, an outdoor cafe, and a day spa to the main avenue in Forest Ridge.
Which of the following best supports the idea that The Attic Trunk’s mature, wealthy
clientele can remain a viable target market?
A) Older, first generation Hispanic consumers are not especially family-oriented.
B) Older, first-generation Hispanic consumers favor sellers who show special interest in
them.
C) Older, first generation Hispanic consumers tend to be very price conscious.
D) Older, first generation Hispanic consumers tend to display little brand loyalty.
E) Older, first generation Hispanic consumers are motivated by mainstream marketing.
Which of the following price adjustment strategies offers a price reduction to buyers
who pay their bills promptly?
A) cash discount
B) season discount
C) quantity discount
D) trade discount
E) functional discount
Which figures does the company use to analyze the new product’s financial
attractiveness?
A) size of population
B) expected market share
C) number of competitors
D) anticipated number of options
E) sales and costs
Which of the following is true of the baby boomers?
A) They tend to see themselves as far older than they actually are.
B) They represent a rapidly shrinking market for new housing and home remodeling.
C) They are long past their peak earning and spending years.
D) They control an estimated 70 percent of the United States’ disposable income.
E) They have utter fluency and comfort with digital technology.
Encouraging customers to switch brands is most likely the objective of ________
advertising.
A) informative
B) reminder
C) covert
D) persuasive
E) institutional
A firm that uses the selling concept takes a(n) ________ approach.
A) outside-in
B) niche marketing
C) inside-out
D) societal marketing
E) customer-driven
________ are online journals where people post their thoughts, usually on a narrowly
defined topic.
A) Social networks
B) Blogs
C) Forums
D) Search engines
E) Web directories
Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to
earn a 10 percent markup on its sales. Samsung’s markup price is ________.
A) $275
B) $280
C) $295
D) $300
E) $335
Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo
and Loopy, on different consumer groups. For the purpose of her study, she divided 20
volunteers into two groups and asked the members of one group to have Kinglo cereal
and the members of the other group to have Loopy cereal for breakfast. She decided to
compare the responses of the volunteers after a week to gain deeper insights into
consumer attitude. In this instance, Juanita is using ________.
A) niche marketing
B) experimental research
C) product differentiation
D) ethnographic research
E) viral marketing
In a(n) ________ channel, the same member both produces and distributes a product or
service to consumers.
A) tiered
B) direct
C) platform
D) vertical
E) exclusive
Runners can compare performances, set up profiles, meet new people, and share
information on Nike’s Nike+ Web site. Nike+ is an example of a(n) ________.
A) podcast
B) blog
C) online community
D) content sponsorship program
E) kiosk
You receive a report that 68 percent of your target market has been exposed to your ad
campaign during a given period of time. Which of the following aspects of media
selection is represented by this information?
A) frequency
B) reach
C) impact
D) engagement
E) qualitative value
Conflict that occurs among firms at the same level of the marketing channel is known
as ________ conflict.
A) multitiered
B) horizontal
C) vertical
D) prolonged
E) financial
Installations consist of ________.
A) highly priced luxury goods such as Rolex watches
B) portable office equipment such as computers
C) major purchases such as elevators
D) portable factory equipment such as hand tools
E) products such as insurance
Carrie tends to purchase various brands of bath soap. She has never been loyal to a
specific brand; instead she does a lot of brand switching. Carrie exhibits ________.
A) dissonance-reducing buying behavior
B) complex buying behavior
C) habitual buying behavior
D) variety-seeking buying behavior
E) conspicuous consumption behavior
A room upgrade offered by a hotel to a guest who often stays in the hotel is an example
of ________.
A) a frequency marketing program
B) a basic relationship
C) a club marketing program
D) partner relationship management
E) sustainable marketing
________ products are those products purchased for further processing or for use in
conducting a business.
A) Unsought
B) Specialty
C) Shopping
D) Industrial
E) Convenience
Identify three ways that companies can collect secondary data.
Hearth & Home, a store which sells household products, has announced a one-week
sale on its new carpet line. This is an example of ________.
A) promotional pricing
B) seasonal pricing
C) by-product pricing
D) product bundle pricing
E) time-based pricing
Which of the following would be the most likely result of slashing ad spending for a
product?
A) increased popularity
B) reduced long-term market share
C) improved brand image
D) increased short-term sales
E) increased long-term market share
________ involves first identifying and assessing competitors and then selecting which
competitors to attack or avoid.
A) Competitor analysis
B) Self-competition
C) Blue ocean strategy
D) Quantitative analysis
E) Perfect competition
In the marketing mix, design, packaging, services, and variety can be categorized under
________.
A) product
B) price
C) promotion
D) place
E) position
Marketing stimuli include which of the following?
A) economic stimuli
B) price stimuli
C) technological stimuli
D) social stimuli
E) cultural stimuli
Refer to the scenario below to answer the following question(s).
Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to
industry design changes and consumer demands, for the next financial year, six of those
stampings will require a slight change: two will have an extra hole punched through the
side, two will require an extra plating process, and two will require an additional weld
operation.
In the meantime, purchasing agent Richard Koehl has been asked to reduce the number
of Alpha’s steel suppliers in an effort to cut costs. After obtaining updated price
quotations and steel samples from his current suppliers, Richard faced a dilemma. Until
now, he had selected his suppliers based on quality and price, but the major
consideration had been the type of steel required and the specialized production
processes of his respective suppliers. Not all of Alpha’s suppliers could produce the
exact grades of steel needed; some suppliers were better at producing certain types of
steel than others.
Richard contacted several employees at Alpha who had worked with the various types
of steel in the past. The quality control manager and line inspector, for example, could
help to determine which suppliers had the capabilities of producing specific types of
steel. The production control manager could provide input regarding which types of
steel worked best in which presses. The warehouse foreman gave inputs regarding how
long various types of steel could be held in inventory before rust spots began to form on
their surfaces. Each person contributed the necessary information to help Richard in
making his decision.
The demand for Alpha Stampings’ products is ultimately based on the demand for new
automobiles in the consumer market. This is an example of ________ demand.
A) negative
B) latent
C) primary
D) derived
E) composite
Which of the following is true of FOB-origin pricing?
A) It is a strategy in which the company charges the same price plus freight to all
customers.
B) It is a costly option for customers who are located near the company.
C) It charges all customers the freight cost from a base city to the customer location.
D) It is an expensive alternative for customers in distant locations.
E) It is a strategy in which the seller absorbs all or part of the freight charges.
Which of the following statements is true of the production concept?
A) It considers customer focus and value to be the paths to sales and profits.
B) It follows the customer-centered sense-and-respond philosophy.
C) It takes an outside-in perspective.
D) It calls for sustainable marketing.
E) It leads to companies focusing too narrowly on their own operations.
Making more sales to current customers without changing a firm’s products is known as
________.
A) market segmentation
B) market penetration
C) product diversification
D) product development
E) prospecting
Many companies have developed ________ programs that encourage employees to
develop new product ideas.
A) management
B) incentive
C) entrepreneurial
D) intrapreneurial
E) crowdsourcing
By showing buyers a better way to make an object, outside sellers can ________.
A) turn straight rebuy situations into modified rebuy situations
B) reduce delivery times and save money
C) provide incentives for larger orders
D) turn straight rebuy situations into new task situations
E) discourage straight rebuys