Alumna, a ceramics manufacturing company in Denmark, is trying to market its
products in Bulgaria. The company has assigned the production of its goods to a local
company in Bulgaria to take advantage of the low labor costs and also to avoid the
import duties on the products. In this case, the strategy used by Alumna for entering
foreign markets is an example of _____.
a. subcontracting
b. licensing
c. sole sourcing
d. exporting
Dell manufactures and markets computers and several related products, such as laptops,
desktops, notebooks, and printers, all under the Dell name. These products are examples
of _____ brands.
a. family
b. captive
c. individual
d. private label
In order to recover research and development costs rapidly and earn high initial profits,
SenseTV is setting a high price for its plasma TVs. The pricing strategy SenseTV is
using is called _____ pricing strategy.
a. market-minus
b. skimming
c. penetration
d. competitive
Relationship marketing relies heavily on:
a. mass marketing and global promotions.
b. technology to store customer data and to customize products/services.
c. strategic alliances and creating competitive advantage.
d. aligning business goals with a social cause.
Receivables are collected credit sales.
a. True
b. False
A pricing strategy that allows marketers to vary prices based on such factors as demand,
even though the cost of providing those goods or services remains the same, is known
as _____.
a. breakeven analysis
b. tariffs
c. unfair-trade laws
d. incremental-cost pricing
e. profit maximization
f. demand
g. value pricing
h. monopoly
i. elasticity
j. marginal
k. fair-trade laws
l. yield management
m. oligopoly
n. cost-plus pricing
o. full-cost pricing
p. supply
q. marginal analysis
r. target-return objectives
s. market-share objectives
t. pure competition
You face a key decision for your swimwear store: whether or not to add an e-commerce
site where consumers can directly purchase your products. You should weigh all of the
following characteristics of e-commerce selling except:
a. E-commerce selling is rarely used in conjunction with selling at brick-and-mortar
stores.
b. E-commerce selling can help keep your costs down.
c. E-commerce sites can help personalize the selling of consumer products like
swimwear.
d. E-commerce sites always depersonalize the selling of consumer products like
swimwear.
e. E-commerce sites cannot reduce retailing costs.
Majority of the online sales is through mobile retail.
a. True
b. False
You work for the local public health department and want to assure community
residents that the recent meningitis outbreak is under control, and that your staff are
working diligently to vaccinate children and to ensure that something like this doesn’t
occur in the future.
Which type of advertising should the company use?
a. product advertising
b. reminder advertising
c. informative advertising
d. persuasive advertising
e. institutional advertising
A _____ is a planned, computer-based system designed to provide decision makers with
a continuous flow of information relevant to their areas of responsibility.
a. business intelligence system
b. critical response management system
c. competitive intelligence system
d. marketing information system
When a company conducts a marketing research project, it is engaging in which one of
the Eight Universal Marketing Functions?
a. Environmental analysis
b. Selling
c. Relationship management
d. Promotion
e. Buying
_____ is the use of the Internet by organizations to solicit bids and purchase goods and
services from suppliers.
a. wiki
b. extranet
c. encryption
d. emarketing
e. private exchange
f. bot
g. search marketing
h. electronic signature
i. phishing
j. blog
k. clickthrough rate
l. conversion rate
m. electronic shopping cart
n. firewall
o. eprocurement
p. vishing
q. spam
r. podcast
s. preroll video ad
t. engagement
Which of the following factors is most likely to be associated with a short marketing
channel?
a. The products require little or no technical knowledge and servicing.
b. Manufacturer lacks adequate resources to perform channel functions.
c. The products are perishable.
d. Manufacturer serves a geographically dispersed potential trade area.
Zac Rampton loves traveling. He maintains an online journal that contains descriptions
of his travel experiences and also pictures of the places he visits. His journal is quite
popular among people who are interested in traveling to unexplored destinations.
Noticing the popularity of his posts, Zac was hired by a travel firm that wanted him to
write engaging articles about its travel packages and other offerings in his online
journal. Zac was hired as a _____.
a. social media designer
b. blogger
c. social media developer
d. microblogger
Which of the following service sectors was newly created by the NAICS to better
reflect the economy of the 21st century?
a. Healthcare and social assistance
b. Finance, insurance, and real-estate services
c. Public administration
d. Wholesale and retail trade
Fresh, a company that manufactures personal care products such as soaps and
shampoos, decides to produce and market dishwashing liquid and cleaners. This
decision of the company represents:
a. an increase in product mix depth.
b. an increase in product mix width.
c. an increase in the product mix consistency.
d. an increase in the product lifecycle.
Setting clear goals helps everyone involved in the marketing campaign to aim their
efforts in the right direction.
a. True
b. False
The General Agreement on Tariffs and Trade included services under international
trading rules.
a. True
b. False
Mitch is a marketing consultant and works with an attorney to provide insight about
how potential jurors view his cases. Mitch typically assembles a small group of 8-12
individuals from the county and presents relevant information about the legal case. He
then guides them in a discussion to learn about their opinions. The group sessions are
typically recorded and last about 2 hours. What type of research method best
characterizes this research?
a. focus group
b. observation
c. telephone survey
d. personal interview
Strategic alliances typically include only the largest firms in any industry because of the
amount of capital required to invest in shared facilities.
a. True
b. False
Procter & Gamble has over 50 leadership brands and produces many products that are
sold worldwide. Which of the following is most likely to be true in the event of the
company adding a new and different product in its household care category?
a. It would decrease P&G’s product mix width.
b. It would increase P&G’s product mix consistency.
c. It would increase P&G’s product mix length.
d. It would decrease P&G’s product mix depth.
_____ are strip messages placed in highvisibility areas of frequently visited websites.
a. Popup ads
b. Banner ads
c. Interstitial ads
d. Engagement ads
Cognitive dissonance is likely to increase when the purchase decision has a major effect
on the buyer.
a. True
b. False
The BCG market share/market growth matrix classifies products with a low relative
share of a highgrowth market as _____.
a. stars
b. question marks
c. cash cows
d. dogs
Venus Inc., a software consulting firm, had made a gross profit of $350.0 million for the
year 2012. For the same year, it had made sales of $890.0 million. What was its gross
profit margin?
a. 69.32%
b. 59.32%
c. 49.32%
d. 39.32%
Marcia’s company is at the commercialization stage of new product development.
Before company executives move forward with this stage, what advice can you give
them?
a. Focus on the cannibalization of existing products.
b. Focus on the promotional mix rather than the distribution mix.
c. The marketing mix should be planned before the selection of the target market.
d. The launch date should coincide with a good economic situation to maximize sales.
e. Target only opinion leaders because they are the ones who will spend the most money
on the product.
The term _____ is used to describe dotcom retailers without traditional stores or
catalogs.
a. multichannel
b. brickandmortar
c. highstreet
d. pureplay
Television commercials are much more effective in specifically targeting interested
consumers than social media efforts.
a. True
b. False
Chelsey is an account executive with Enterprise Rent-A-Car and works with body shop
and automotive service providers as well as insurance agents. Chelsey knows that many
automobile owners have car rental riders as part of their automobile insurance and when
their car is damaged from a storm or accident, they could receive a rental car while their
vehicle is being repaired. When Chelsey meets with her customers, she typically
promotes the features and benefits of Enterprise such as how Enterprise provides
exceptional service and goes above and beyond to pick-up customers at their preferred
location and give them their rental vehicle. In addition, most of Enterprise’s fleet of
vehicles are less than 2 years old and are well maintained to provide a comfortable
driving experience. Chelsey tells her agent and body shop owner clients that by using
Enterprise’s services, their customers will have higher levels of customer satisfaction
with their repair experience and that translates into loyalty for the insurance agent.
During which step in the personal selling process will Chelsey share this information?
a. presentation
b. demonstration
c. prospecting
d. closing
Banners have evolved into a more target-specific technique for Internet advertising with
the advent of missiles.
a. True
b. False
NikSnak, a popular potato wafers brand, is most likely to use an exclusive distribution
strategy.
a. True
b. False
In this era of marketing, strategic alliances are (were) very important.
a. The social era
b. The production era
c. The marketing era
d. The sales era
e. The relationship era
Over-the-counter selling usually requires the customer to take the initiative and travel to
the seller’s place of business.
a. True
b. False