Bremer Jewelry has two locations in Illinois within 60 miles of each other and is the
only jewelry store to carry the Hearts on Fire diamond jewelry line. Bremer has
negotiated with Hearts on Fire to be the only retailer within a 150-mile radius of both
store locations and believes that this arrangement provides a competitive advantage to
the store. What type of distribution does Bremer Jewelry have with Hearts on Fire?
a. exclusive distribution
b. closed territory
c. selective distribution
d. intensive distribution
The airline industry in a particular country has only four dominant players. Large
capital investments and government regulations often prevent new players from
entering the market. Based on this information, the structure of the airline industry in
this country is _____.
a. a duopoly
b. perfectly competitive
c. an oligopoly
d. a monopoly
Dani works in the fine fragrances sales floor in a major department store. She recently
attended a mandatory training seminar in which sales personnel were coached on ways
to increase sales through personal interactions with customers. Now Dani is putting
what she learned to work. When customers ask her the price of a single bottle of
fragrance, Dani gives them the information they want but also lets them know that for a
slightly higher cost, they can purchase a gift set. The gift set contains a slightly smaller
bottle of the fragrance but includes lotion and shower gel in the same scent. Since Dani
started using this technique, the average value of each sale she makes has increased by
15%.
Based on Dani’s actions, which component of the department store’s retail strategy did
the training seminar focus on?
a. pricing
b. promotion
c. merchandising
d. customer service
e. store atmospherics
Promotion that attempts to increase demand for an existing good, service, organization,
person, place, idea, or cause is called _____ advertising.
a. informative
b. persuasive
c. ambush
d. evaluative
Purchases that have substantial social or economic consequences:
a. usually require relatively less investment of time and effort.
b. represent routine purchases that pose little risk.
c. require independent decision making.
d. represent high-involvement purchase decisions.
The price reduction granted on a one-time-only basis is called a(n) _____.
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
Brand insistence, the ultimate stage in brand loyalty, leads consumers to refuse
alternatives and to search extensively for the desired merchandise.
a. True
b. False
The broadest environmental determinant of consumer behavior is:
a. income or purchasing power.
b. educational background.
c. culture.
d. social status.
A(n) _____ is an intermediary that takes title to the goods it handles and then distributes
these goods to retailers, other distributors, or sometimes end consumers.
a. agent
b. wholesaler
c. broker
d. drop shipper
Groups do not intentionally create formal roles, nor do they ever have expectations that
roles and statuses will develop within their membership.
a. True
b. False
Maya is in the purchase process for a new car and is considering a Hyundai Sonata and
believes their Assurance or warranty program is the best available since it offers
10-years or 100,000 miles of coverage including a 5-year 24X7 roadside assistance
plan. Maya’s belief about Hyundai represents the _______ component of her attitude.
a. cognitive
b. affective
c. conative
d. feeling
Janet owns a chain of ice cream shops. Her business has consistently been more
profitable than competition — despite her decision to always charge the same prices as
other stores, while offering unique flavors and home delivery. Now she plans to sell the
firm to an investor who believes that pricing is the key to success. Based on her
experience, which of the following pieces of advice would Janet be likely to give him?
a. Continue focusing on profitability objectives.
b. Continue using price to create market incentives.
c. Continue deemphasizing the price element of the marketing mix.
d. Don’t lose focus on product and distribution strategies.
e. The most promising way to build market share is to start reducing prices relative to
competition.
The _____ equals the revenues and benefits a customer brings to an organization, minus
expenses to attract and maintain the relationship.
a. utility
b. buzz marketing
c. exchange process
d. seller’s market
e. buyer’s market
f. marketing myopia
g. social responsibility
h. relationship marketing
i. person marketing
j. place marketing
k. event marketing
l. organization marketing
m. interactive marketing
n. lifetime value of a customer
o. social marketing
p. onetoone marketing
q. strategic alliances
r. notforprofit organizations
s. ethics
t. mobile marketing
u. wholesalers
v. transactionbased marketing
Which of the following is most likely to be a logical starting point in identifying the
marketing problem?
a. Ascertaining the budget and logistical limits that the problem warrants
b. Determining the computational scope of the problem
c. Evaluating the firm’s target market and marketing mix elements
d. Simulating a market research based on formulated hypotheses
Brighton Jewelry is a manufacturer of fashionable jewelry and accessories for women
such as wallets, purses, and belts. Their products are sold in specialty retail outlets as
well as Brighton’s own specialty stores which feature all of its products. By operating
and managing their own retail outlets, Brighton is using _____ integration.
a. forward
b. backward
c. horizontal
d. multi-channel
The Russian currency is considered a hard currency.
a. True
b. False
Everyday low pricing strategies are an attempt to remove pricing as a significant part of
the marketing mix.
a. True
b. False
Which of the following is a basic requirement for effective market segmentation?
a. The firm must avoid focusing on consumer-dependent variable, such as discretionary
income, while conducting market segmentation.
b. The market segment must present measurable purchasing power and size.
c. The company must expand beyond its marketing capabilities to capture those market
segments that have reached the maturity stage in the product life cycle.
d. The company must target a large number of small market segments so that they can
develop effective strategies to appeal to them.
You want to improve your performance in field selling, so you have set out to build
your skills in the order processing part of the job. Those skills will be related to several
tasks, including:
a. Identifying customer needs
b. Pointing out needs to the customer
c. Completing orders
d. Cross selling
e. All of the above
The NBA Sacramento Kings play their home games in the Arco Arena. The naming of
their stadium is an example of which one of the following five types of nontraditional
marketing?
a. Stadium naming rights marketing
b. Sports team marketing
c. Organization marketing
d. Event marketing
e. Place marketing
Iron ore and raw cotton are examples of:
a. personal products.
b. shopping products.
c. impulse products.
d. business products.
A reference group’s influence on the purchasing decision of a member is often greater
when the product is more conspicuous and not commonly owned.
a. True
b. False
Which stage of the organizational buying process involves establishing specifications
for a needed product?
a. Recognizing a need
b. Describing characteristics of a needed product
c. Qualifying potential vendors
d. Selecting an order routine
The sale of a product to a customer via a vending machine is typical of a
transaction-based relationship.
a. True
b. False
A wiki is a Web page that anyone can edit.
a. True
b. False
ANS: True
Which of the following types of advertising media dominates local markets?
a. Radio
b. Network television
c. Cable television
d. Newspapers
The target audience for a social media marketing campaign depends on the goal of the
marketing effort.
a. True
b. False
Changing channel strategies can produce conflicts between established intermediaries
and the new channels for the product.
a. True
b. False
The segmentation of B2B marketplace based on how business purchasers will use the
product is called:
a. segmentation by purchasing category.
b. segmentation by customer type.
c. segmentation by end-use application.
d. segmentation by demographic characteristics.
The _____ is a proposed free-trade area stretching the length of the entire Western
Hemisphere and designed to extend free trade benefits to additional nations in North,
Central, and South America.
a. NAFTA
b. EU
c. FTAA
d. CAFTA-DR