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Banks have recently begun to install ATMs in supermarkets to address customers’ wants
for instant cash when they go shopping. What type of utility are banks creating for
customers?
a. Form
b. Possession
c. Place
d. Ownership
The overview of a social media marketing plan describes the overall market conditions
and the firm’s current position in social media.
a. True
b. False
A(n) _____ is a limited-function merchant wholesaler that markets perishable food
items.
a. stock-keeping unit (SKU)
b. markup
c. markdown
d. retail convergence
e. scrambled merchandising
f. atmospherics
g. broker
h. general merchandise retailer
i. category killer
j. rack jobber
k. supercenter
l. auction house
m. specialty store
n. retailers
o. mass merchandiser
p. truck jobber
q. direct marketing
r. drop shipper
s. planned shopping center
t. wheel of retailing
A(n) _____ buys products from domestic producers and resells them abroad.
a. outsourcing firm
b. export-trading company
c. export-management company
d. offset marketer
In the area of self-concept theory, the real self is:
a. the self which has achieved self-actualization.
b. the way the individual thinks other people see him or her.
c. the individual’s personal set of objectives to which he or she aspires.
d. the objective view of the total person.
Transportation and delivery expenses typically account for 25 percent of the cost of a
product.
a. True
b. False
Supply chain management refers to the control of the activities of purchasing,
processing, and delivery through which raw materials are transformed into products and
made available to final consumers.
a. True
b. False
The assortment of product lines and individual product offerings a company sells is
called the _____.
a. marketing mix
b. specialty products
c. product
d. services
e. convenience products
f. impulse goods
g. installations
h. wholesalers
i. business-to-business (B2B)
j. supplies
k. emergency goods
l. shopping products
m. component parts and materials
n. staples
o. product mix
p. product line
q. line extension
r. total quality management
s. product lifecycle
t. benchmarking
Which of the following international market entry strategies is most likely to offer a
competitive advantage to the firms and is characterized by high levels of involvement
and high risk potential?
a. Franchising
b. Sole sourcing
c. Foreign licensing
d. International direct investment
The competition between Amtrak, Hertz, and Delta Airlines for the travelers’ dollar is
considered indirect competition because these services can be substituted for one
another.
a. True
b. False
A marketing information system allows marketers to store data, classify and analyze
that data, and retrieve it easily when needed.
a. True
b. False
_____ is a quantitative forecasting technique that assigns weights to historical sales
data, giving the greatest weight to the most recent data.
a. Delphi technique
b. Test market
c. Exponential smoothing
d. Jury of executive opinion
In an oligopolistic market, high start-up costs form significant barriers to entry for new
competitors.
a. True
b. False
Many government and organizational procurement departments do not pay set prices
for their purchases.
a. True
b. False
Sparks, a manufacturer of smart phones and tablets, is currently gathering information
on demographics to pinpoint the audience for its social media marketing campaign. In
other words, Sparks is collecting information on:
a. the social media platforms and tools used by its competitors and their overall
effectiveness.
b. what potential customers need or want
c. which of its products and social media will meet the needs and wants of a particular
group of people.
d. characteristics such as age, gender, geographic location, income, ethnicity, and
marital status of a target group.
Controlling part of the supply chain that involves raw materials, inbound logistics, and
warehouse and storage facilities 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
Manufactured goods account for the lion’s share of U.S. production output today.
a. True
b. False
You overhear your parents having a conversation about the family’s grocery list and
which of them is going to do the shopping this coming weekend. Your mother typically
does the grocery shopping and has a comprehensive process, which entails researching
supermarkets that have the best sales, clipping coupons, and identifying which items
she wants from the circulars that are mailed weekly to the house. She prefers to do the
shopping herself but has to go out of town, leaving your dad with this responsibility.
Your dad generally just buys whatever he thinks you and your siblings will like and
prefers to be in and out of the grocery store. What can be said about your parents’
purchase decision styles?
a. Both of them engage in high-involvement decisions.
b. Involvement in purchase decisions may vary from one person to the next.
c. Men are more likely to rely on personal determinants when making purchase
decisions.
d. Your mom’s purchase decision process requires low-involvement because she does
most of the grocery shopping for your family.
e. More time elapses between the problem/opportunity recognition and the purchase act
stages of the purchase decision process for your dad.
A(n) _____ is a general guideline that reflects marketing objectives and influences
specific pricing decisions.
a. competitive bidding
b. penetration pricing strategy
c. list price
d. trade discount
e. price flexibility
f. promotional pricing
g. loss leader
h. cannibalization
i. bundle pricing
j. odd pricing
k. transfer price
l. profit center
m. skimming pricing strategy
n. competitive pricing strategy
o. pricing policy
p. market price
q. noncumulative quantity discount
r. step out
s. bot
t. cash discount
Which of the following is the most widely used form of intermodal coordination?
a. Horseback service
b. Fishyback service
c. Birdyback service
d. Piggyback service
The traditional view of marketing can be described as transactionbased marketing.
a. True
b. False
The United States leads the world in retailing and service exports.
a. True
b. False
Income is a common demographic variable for segmenting the consumer market, and
expenditure patterns vary with income. Engel's laws are three general statements based
on Ernst Engel's statistical study of the impact of changes in household income on
consumer spending behavior. These statements were valid over 100 years ago and with
a few exceptions, still appear to be valid today. Choose the statement below that best
summarizes Engel's laws.
a. As income increases: a smaller percentage is spent on food; the percentage spent on
housing and clothing increases; the percentage spent on other items like recreation
remains constant.
b. As income increases: a larger percentage is spent on food; the percentage spent on
housing and clothing remains constant; the percentage spent on other items like
recreation increases.
c. As income increases: the percentage spent on food remains constant; the percentage
spent on housing and clothing decreases; the percentage spent on other items like
recreation increases.
d. As income increases: a larger percentage is spent on food; the percentage spent on
housing and clothing increases; the percentage spent on other items like recreation
remains constant.
e. As income increases: a smaller percentage is spent on food; the percentage spent on
housing and clothing remains constant; the percentage spent on other items like
recreation increases.
Which of the following is a part of the consultative selling process?
a. Salespeople and specialists working together to promote products
b. Offering multiple goods or services to the same customer
c. Understanding customer problems
d. Concentrating mostly on short-term or quick sales
A manufacturer of sports shoes received an order to export 50,000 units to Brazil.
Which pricing approach should the manufacturer use so that the cost of exporting is
paid by the receiving country?
a. set one worldwide price to charge the receiving country
b. determine the price minus the cost of shipping to the receiving country
c. establish the price according to the cost of manufacturing plus shipping
d. recommend a price that can fluctuate depending upon the receiving country’s market
e. negotiate the price to be a percentage of sales plus the cost of shipping to the
receiving country
The process by which buyers ask a number of potential suppliers to submit price quotes
on a proposed purchase or contract, of which the lowest will be accepted, is called:
a. specification.
b. competitive bidding.
c. noncompetitive bidding.
d. competitive pricing.
One of the advantages of the full-cost pricing approach is that it takes into consideration
the competition and demand that exists for a product.
a. True
b. False
Which of the following is a disadvantage of advertising as a promotional strategy?
a. It is expensive due to high cost per contact.
b. It allows very little control over the final promotional message.
c. It does not permit totally accurate measurements of results.
d. It cannot be adapted to either mass audience or specific audience segments.
It can be said that all marketing and marketing strategies begin with marketing research.
There is a strong positive correlation between the quality of a firm’s marketing research
and the success of the firm’s marketing strategies. Poor marketing research leads to
poorly executed and poorly performing marketing strategies. On the other hand, quality
marketing research facilitates a firm’s ability to select the best marketing strategies for a
given situation.
Marketers understand that marketing research is important because
a. it helps the firm select the appropriate marketing mix
b. it helps a company evaluate its sales force’s performance
c. it guarantees the success of the firm’s marketing strategies
d. it is a viable substitute for an organization’s SWOT analysis
e. it ensures that the firm is able to meet the market’s profit expectations
Loyola works for a coffee shop that wants to differentiate itself from local competitors
in order to boost its profits. Which of the following differentiation strategies would hurt
the company rather than boost sales?
a. hire more staff
b. sell the coffee cups in which the beverages are served
c. offer a wider selection of international coffees and teas
d. provide customer incentives, including coupons and points
e. renovate the coffee shop so it has more space than other coffee shops in the area
Which of the following is NOT a nonprofit organization?
a. Golden State Warriors an NBA franchise
b. Boston College, a private university
c. Alzheimer's Association
d. Boys and Girls Clubs of America
The _____ component of the marketing environment consists of laws that require firms
to operate under competitive conditions and to protect consumer rights.
a. economic
b. competitive
c. socialcultural
d. politicallegal
Marketers use _______________ to collect information about the external marketing
environment to identify and interpret potential trends.
a. CRM software
b. Promotional giveaways
c. Target marketing
d. Environmental scanning
e. Test marketing
