Bots are search programs that hunt the Web for a specific vendor and then print out a
list of products and their prices at that source.
a. True
b. False
_____ is an accounting term that refers to charging a portion of a capital item’s cost as a
deduction against the company’s annual revenue for purposes of determining its net
income.
a. Valuation
b. Depreciation
c. Accretion
d. Depletion
A popular clothing brand in Switzerland decided to launch a new line of home furniture
under the same brand name. This strategy being used by the company to launch its new
offerings is called _____.
a. line engagement
b. brand reinforcement
c. line extension
d. brand extension
A department store is a:
a. retail outlet offering huge selections and low prices in a single product line.
b. retail store that handles only some part of a single product line.
c. retailing format that offers movie theatres and restaurants along with live
entertainment in an attractive outdoor environment.
d. series of limited-line and specialty stores gathered under one roof.
A buying situation in which business purchasers are willing to reevaluate their available
options is known as:
a. a straight rebuy.
b. a modified rebuy.
c. new-task buying.
d. value engineering.
_____ are taxes levied on the sale of imported goods and services.
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
Widespread adoption of wireless networks and inhome Internet use has led to an
increased availability of “smart” products for the home such as thermostats, lighting,
security, systems and smoke detectors. Which environmental factor is most related to
the new smart home products?
a. technological
b. socialcultural
c. economic
d. politicallegal
Which agreement was negotiated between the United States and the Dominican
Republic and various Central American nations?
a. CAFTA-DR
b. United Central American/Dominican Treaty
c. FTAA
d. NAFTA
The 80/20 principle is sometimes referred to as _____.
a. target market
b. market segmentation
c. cohort effect
d. primary metropolitan statistical area
e. differentiated marketing
f. concentrated marketing
g. micromarketing
h. positioning map
i. VALS
j. AIO statement
k. core region
l. consumer product
m. demographic segmentation
n. Pareto’s law
o. psychographic segmentation
p. geographic information systems
q. positioning
r. geographic segmentation
s. business product
t. mass marketing
Cable advertising offers marketers access to more narrowly defined target audiences
than other broadcast media can provide.
a. True
b. False
Which of the following terms refers to the amount by which a retailer reduces the
original selling price of a product?
a. Depreciation
b. Switching cost
c. Underwriting
d. Markdown
_______________ are websites that provide virtual communities for people to share
daily activities and post opinions on various topics.
a. Blogs
b. ECommerce sites
c. Social networking sites
d. Instant messaging portals
e. Message boards
Janelle works in the purchasing department of an apparel manufacturing company and
has the formal authority to select a supplier. Janelle is a(n):
a. buyer.
b. influencer.
c. gatekeeper.
d. decider.
American Siding and Windows uses a team of inside sales representatives to contact
homeowners by telephone and schedule appointments to provide free estimates on
home improvement projects such as new windows, sun rooms, siding and awnings. The
company’s promotional efforts can be classified as:
a. direct marketing
b. public relations
c. sponsorship
d. nonpersonal selling
Programs that improve customer service inside a company raise productivity and staff
morale, resulting in better customer relationships outside the firm.
a. True
b. False
The World Trade Organization oversees GATT agreements, serves as a forum for trade
negotiations, and mediates trade disputes.
a. True
b. False
A mail-order wholesaler is a limited-function merchant wholesaler that:
a. distributes catalogs instead of sending sales representatives to contact customers.
b. exerts full authority over pricing decisions and promotional outlays, and even
provides financial assistance for the manufacturer.
c. conducts its business by sending sales representatives to contact retail, business, and
institutional customers.
d. accepts orders from customers and forwards these to manufacturers who ship the
products direct to the customer.
In your regular goods and services consumption activities, you purchase products from
the wholesaler for resale and for use in your store’s daily operations. You also purchase
products that you will feature in the gift baskets you make. On the basis of this
information, which of the following best describes the market component you are part
of?
a. professional
b. business
c. consumer
d. resale
e. manufacturing
The clickthrough rate is a measure of the:
a. number of clicks performed by an average user when searching for information
through a search engine.
b. number of ads served up to a user on a search engine per query.
c. percentage of people presented with a banner ad who click on it.
d. number of Web pages viewed by a user after clicking through an ad.
You are conducting interviews for new sales representatives for your electronics firm.
You are primarily looking for candidates that you believe can be successful in
developing new business and selling to new customers. Your current staff is full of sales
representatives who are exceptional at generating repeat sales.
You will be looking for personal sales personnel who are proficient in which kind of
sales task?
a. order processing
b. support personnel
c. creative selling
d. missionary selling
e. technical sales reps
A private exchange is a secure website used by companies to:
a. improve the efficiency of their bidding and purchasing processes.
b. share all types of data related to emarketing with its suppliers.
c. give financial information to its investors.
d. share information with the employees in different locations.
Sales managers can best foster an ethical work environment by:
a. closely monitoring sales representatives by recording their phone calls.
b. sending salespeople to sensitivity training.
c. letting employees know what is expected of them.
d. taking strict action against employees who are unethical in their behavior.
Now that you’re working in a physical distribution capacity, you need to understand the
differences among freight carriers. Primarily, your company delivers its goods via
FedEx, UPS, and the United States Postal Service. These carriers have the following
properties in common:
a. They are government-owned.
b. They are common carriers.
c. They are private carriers.
d. They are contract carriers.
e. They observe no rate or service regulations.
Water carriers continue to control the largest share of the freight business as measured
by ton-miles.
a. True
b. False
The information gathered by an outside marketing research firm is often more thorough
and accurate than that collected by in-house staff.
a. True
b. False
Which of the following statements is true about the benefits of buyer-seller
relationships in business-to-business marketing?
a. They increase cash flows for both parties.
b. They lead to improved quality and reliability.
c. They reduce inventory management costs.
d. They eliminate the need for transaction financing for either party.
e. They guarantee the availability of supplies.
A(n) _____ is a sales promotion technique that offers a discount on the purchase price
of goods or services.
a. span of control
b. field selling
c. inside selling
d. order processing
e. virtual sales team
f. team selling
g. approach
h. creative selling
i. presentation
j. sales promotion
k. premium
l. coupon
m. network marketing
n. cold calling
o. expectancy theory
p. over-the-counter selling
q. missionary selling
r. relationship selling
s. push money
t. consultative selling
Managers of firms have traditionally focused on improving their relationship with the
government and the general public as part of their social responsibility.
a. True
b. False
Fears of product tampering have forced many firms to improve package designs.
a. True
b. False
Drop shippers take title to the goods but never physically handle or even see the
merchandise.
a. True
b. False
In the BCG matrix, the position of an SBU along the vertical axis indicates the _____ of
the market.
a. planning
b. marketing planning
c. strategic planning
d. tactical planning
e. cash cows
f. first mover strategy
g. SWOT analysis
h. strategic window
i. marketing mix
j. product strategy
k. strategic business units
l. Porter’s Five Forces
m. marketing strategy
n. dogs
o. stars
p. annual growth rate
Strategic planning is the process of anticipating events and market conditions and
deciding how a firm can best achieve its organizational objectives.
a. True
b. False
