In intermodal transportation, which of the following describes the use of both water and
trucks for transportation?
A) fishyback
B) drawbar
C) trainship
D) piggyback
E) airtruck
Which of the following is the first step in the marketing research process?
A) developing a marketing information system
B) defining the problem and objectives of the study
C) developing the research plan
D) implementing the research plan
E) interpreting and reporting the findings
Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of
$1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle.
What is the break-even volume?
A) 25,000
B) 55,000
C) 100,000
D) 115,000
E) 125,000
It is most accurate to say that when customers purchase products they act on ________
as they judge values and costs.
A) objective value
B) perceived value
C) customer lifetime value
D) company image
E) society’s interests
Consumers today receive commercial messages from a broad range of sources.
However, consumers ________ the way marketers do.
A) don’t distinguish between message sources
B) never pay attention to sales promotions
C) don’t care about buzz marketing
D) are not able to block out messages
E) block out all media messages
Which of the following is true of product bundle pricing?
A) It promotes the sale of products that consumers might not otherwise buy.
B) It is used to set prices across an entire product range based on customer evaluations.
C) It forces customers to buy product parts that are only compatible with the main
product.
D) It results in companies making fewer—though more profitable—sales.
E) It involves pricing the main product low and setting high markups on the supplies.
Refer to the scenario below to answer the following question(s).
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a
shoe store, a small restaurant, and a grocery store. Over the next two decades, the small
town transformed into an international tourist attraction, attracting thousands of tourists
who were intrigued by the lifestyle of Shipshewana’s largest population—the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on
their town’s popularity and their woodworking skills. Their shop, Indiana Wood, began
with a small display of handmade hickory rocking chairs, Ben Miller’s specialty. But
within a few months, the display at Indiana Wood included picnic tables, flower boxes,
and small handmade novelty items. No other shop offers the same variety.
Mary Miller decorated the shop’s display room with authentic Amish dcor and
eventually hired three Amish friends to sew and embroider napkins and other textiles as
customers had requested such items. In addition, two women from the Amish
community sought permission from the Millers to display home-baked pastries and
jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to
its flea market on the south edge of town. The Millers also hired four more people to
help customers throughout the purchasing process and to provide the required
product-related information to the customers.
“Shipshewana is full of specialty shops,” Mary Miller stated. “People don’t come here to
buy things made in China or Taiwan. They want real, Amish-made goods.”
The authentic Amish dcor of Indiana Wood’s contributes to the store’s ________.
A) product assortment
B) services mix
C) atmosphere
D) segmentation
E) retail convergence
During the prospecting stage, a salesperson needs to identify the good leads and screen
out the poor ones through a process known as ________.
A) closing
B) satisficing
C) presenting
D) qualifying
E) approaching
________ occurs when product or service producers cut out intermediaries and go
directly to final buyers or when radically new types of channel intermediaries displace
traditional ones.
A) Extensive distribution
B) Multichannelization
C) Disintermediation
D) Inclusive distribution
E) Cross merchandising
Refer to the scenario below to answer the following question(s).
Alden Manufacturing produces small kitchen appliances—blenders, hand mixers, and
electric skillets—under the brand name First Generation. Alden attempts to target
newlyweds and first-time home buyers with this brand.
Considering that most young households have limited financial resources, Alden
attempts to engage in target costing. “In doing this,” says Milt Alden, the co-founder of
Alden Electronics, “we have better control over keeping price right in line with
customers.”
Alden manufactures a three-speed blender, its top seller, along with a five-speed
blender. The hand mixers are manufactured in two variants—a small handheld mixer
with two rotating beaters and another that comes with an optional stand and an attached
mixing bowl. Alden’s temperature-controlled skillets are manufactured in a single style
with three color options.
“Our product offerings are narrower,” Milt Alden added, “but our line workers know
each product like the back of their hands. This allows us to produce superior products
while holding our prices low.
Milt Alden says that his line workers “know each product like the back of their hands,”
and that this knowledge helps the company keep its prices low. This indicates that
Alden Manufacturing most likely benefits from the ________.
A) cost-plus pricing
B) value-added pricing
C) experience curve
D) inelastic demand in the market
E) derived demand in the market
The first step in creating effective advertising messages is ________.
A) selecting specific media vehicles
B) planning a message strategy
C) determining return on advertising investment
D) choosing media timing
E) executing the message
In which situation is the market dominated by one seller?
A) pure monopoly
B) monopolistic competition
C) oligopolistic competition
D) pure competition
E) free market
Happy Pet is a large pet food company that has convinced the retailers and the
wholesalers of the New England area to resell its products. Happy Pet promises to
reimburse the advertising costs to its retailers and wholesalers for advertising its
products. This is an example of a(n) ________.
A) trade promotion
B) point-of-purchase promotion
C) sweepstake
D) price pack
E) advertising specialty
Consumer information provider Nielsen uses a life-stage segmentation system that
places U.S. households into one of 66 different life-stage groups. According to Nielsen’s
groups, which of the following refers to the group consisting of hip, single
twenty-somethings who are politically liberal, listen to alternative music, and enjoy
lively nightlife?
A) Striving Singles
B) Young Achievers
C) Bohemian Mix
D) Young Influentials
E) Young Digerati
Organizations choose to use only a few of the available online and social media. Using
multiple social media results in confused fans.
Keeping the brand in a customer’s mind during off-seasons is most likely a goal of
________ advertising.
A) reminder
B) attack
C) informative
D) covert
E) competitive
Moral appeals ________.
A) relate to the audience’s self-interest by showing that the product will produce the
desired benefits
B) attempt to stir up either negative or positive emotions that can motivate purchase
C) range from love, joy, and humor to fear and guilt
D) are directed to an audience’s sense of what is “right” and “proper”
E) are based on the idea that practical benefits are more important for consumers than
emotions
Which of the following is an advantage of telephone interviews?
A) They are more cost-effective than mail questionnaires.
B) Interviewer bias is absent.
C) The quantity of data collected is greater compared to personal interviewing.
D) The speed with which data is collected is high.
E) Response rates tend to be higher than those of mail questionnaires.
A ________ calls for consumers to submit an entry to be judged by a panel that will
select the best entries.
A) contest
B) sweepstake
C) sample
D) premium
E) rebate
What is a significant issue for social media and for companies using it as a marketing
tool?
A) measuring viewership
B) creating content
C) identifying target markets
D) monetizing the tool
E) recognizing effective social media sites
________ are groups to which an individual wishes to belong, as when a young
basketball player hopes to play someday in the NBA or WNBA.
A) Membership groups
B) Aspirational groups
C) Leading adopters
D) Subcultures
E) Reference groups
Which of the following is a disadvantage of a team-based approach to new product
development?
A) It takes longer for the development of a new product.
B) The development effort is not as effective because of employee inexperience.
C) It decreases the efficiency of the new product development process.
D) It can result in organizational confusion and tension.
E) The process does not work with the shorter life cycles of many of today’s products.
Through ________ differentiation, brands can be differentiated on features,
performance, or style and design.
A) services
B) channel
C) people
D) product
E) price
Which of the following demographic trends is the most likely cause for a rapid increase
in telecommuting?
A) the migration toward micropolitan and suburban areas
B) the migration from rural to metropolitan areas
C) the increasing number of traditional households
D) the growing percentage of married couples who do not have children
E) the declining number of manufacturing workers in today’s workforce
Refer to the scenario below to answer the following question(s).
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical
nature. In recent years, owner Gary Zahn has served as the local representative of
several musical instrument manufacturers, providing a contact person for three local
schools. He sends a sample of a manufacturer’s products to schools that request a
demonstration or presentation. “If we don’t have it, we can definitely get it for you,”
Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a
particular era or just browsing among the hundreds of music knick-knacks in the store.
Gary spends most of his time making presentations to beginners at the local schools and
making biweekly visits to the schools to deliver instruments, make minor repairs, or
pick up instruments to ship to the manufacturer for more complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web
site could benefit a variety of customers. He began with a simple Web site that provided
information about the store and the types of gifts and services available. The site
received so much response that Gary added a question-and-answer option. Questions
poured in, ranging from “Where can I get sheet music for ‘Hello, Dolly’?” to “Do you
carry clarinet reeds?” to “My saxophone needs two new pads. When will you be at
Elmhurst School to repair it?” The Web site is now able to accept credit card orders, and
gifts can even be wrapped and shipped for no extra charge.
“This Web site idea was fantastic!” Gary admitted. “It allows us to be so responsive.
And our novelties sales have doubled!”
Gary sends samples of sheet music to schools for demonstration or presentation. Which
of the following types of marketing is being illustrated from this statement?
A) kiosk marketing
B) viral marketing
C) direct-mail marketing
D) telemarketing
E) direct-response television marketing
When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how
the product cleans grime from walls without removing paint. What type of campaign
was most likely used by P&G for the Mr. Clean Magic Eraser?
A) informative advertising
B) persuasive advertising
C) reminder advertising
D) developmental advertising
E) comparative advertising
In the ________ stage of the buying process, the alert business marketer can help the
buyers define their needs and provide information about the value of different product
characteristics.
A) problem recognition
B) general needs description
C) supplier search
D) supplier selection
E) order-routine specification
Which of the following statements best explains why idea screening may be the most
important step of new product development?
A) It increases the number of ideas generated.
B) It provides an opportunity for the marketer to test the prototype in a simulated
market.
C) It helps forecast the products’ sales and profits accurately for a specific period.
D) It gives research and development team members an opportunity to gather consumer
feedback.
E) It saves the company money in product development costs by going ahead with only
the product ideas that are likely to be profitable.
Companies risk losing their home markets ________.
A) by protecting themselves from competition at home
B) to other domestic competitors
C) as they may find foreign competitors in their own backyards
D) by focusing only on their home markets
E) in hopes of growing market share at home
Chronos Inc. designs and markets different brands of cycling watches. Each brand has a
single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos
Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis
has a GPS function. Which of the following is evident here?
A) channel differentiation
B) service differentiation
C) product differentiation
D) people differentiation
E) image differentiation
While companies have learned that “doing good” and “doing well” go hand in hand,
companies have also learned that to do good, they must first do well in terms of
________.
A) successful advertising campaigns
B) hiring of strong employees
C) designing of attractive products
D) profitable business operations
E) ethical, as well as legal, decision making
Which of the following is a type of industrial structure?
A) marketing economies
B) subsistence economies
C) laissez-faire economies
D) capitalistic economies
E) socialistic economies
Anchor Tractors focuses on selling its farm equipment in North America and Europe. It
has not yet considered expanding into the Middle East. Which factor is likely most
important in this decision regarding expansion?
A) geographic
B) political
C) demographic
D) personality
E) cultural
Which of the following is a strength of advertising?
A) It is the most inexpensive promotion tool.
B) It reaches masses of geographically dispersed buyers at low cost per exposure
C) It is impersonal and lacks the direct persuasiveness of company salespeople.
D) It cannot trigger quick sales.
E) It cannot be used to build up a long-term image for a product.
An ad for Maybelline age-minimizing makeup in Ladies’ Home Journal magazine
featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the
new makeup. In terms of the communication model, the medium of this ad is ________.
A) Gigi Hadid
B) Ladies’ Home Journal
C) readers who redeem the $2-off coupon
D) Maybelline
E) the target market to which Gigi Hadid appeals