Which of the following terms refers to the development of individual offerings that
appeal to different market segments while remaining closely related to the existing
product line?
a. Line penetration
b. Line innovation
c. Line extension
d. Line cannibalization
A sampling method that involves first selecting a sample of subgroups from the
population and then drawing a sample from each group so that the final sample
represents the diversity of the population is called a _______ sample.
a. cluster
b. nonprobability
c. simple random
d. probability
Internal marketing involves selling products to employees of the firm at a discount.
a. True
b. False
Some types of products like cigarettes and smokeless tobacco are banned from
television advertising.
a. True
b. False
Businesses must manage logistics in order to maximize customer value. What are three
methods for managing logistics?
a. manage raw materials; inbound logistics; warehousing
b. upstream management; RFID technology; warehousing
c. logistical cost control; third-party logistics firms; enterprise resource planning (ERP)
systems
d. logistical cost control; RFID technology; enterprise resource planning (ERP) systems
e. downstream management; upstream management; logistical cost control
Which of the following is true of promotional pricing?
a. It promotes goods and services at specific price ranges based on the belief that certain
prices are more appealing to consumers.
b. It uses lower-than-normal price as a temporary component in the selling strategy.
c. It sets a high price for products that offer unique potential ability.
d. It uses extensive promotional allowances to get channel members to promote the
product.
Which of the following best represents a set of activities that move production inputs
and other goods within factories, warehouses, and transportation terminals?
a. Materials handling system
b. Order processing system
c. Vendor-managed inventory system
d. Package tracking system
Tiffany is a marketing research consultant and is working with a local community
college to determine the primary reasons students select the college. Based on
exploratory research, Tiffany believes the main reasons are cost, convenience and value.
She plans to conduct additional research to determine whether or not this ______ can be
supported.
a. hypothesis
b. belief
c. attitude
d. feeling
As your women’s clothing firm expands abroad, you are arguing for a global marketing
strategy. However, a more seasoned coworker easily counters your weakest argument.
Which point does he counter?
a. It will bring the advantage of economies of scale to our marketing activities.
b. It will reinforce the image of our clothing brand everywhere.
c. It will overcome cultural and geographic differences in what women wear.
d. It will be cheaper than other approaches to implement.
e. It will enable you to define a standard marketing mix.
Which of the following statements is true about CRM systems?
a. They do not allow for centralized data.
b. They create partnerships with customers.
c. Customers are not empowered.
d. Customer retention and loyalty is diminished.
e. They are usually successful even without sales and service employees input.
Places where more than half the population is a single racial or ethnic group other than
non-Hispanic white are called as _____.
a. minority counties
b. majority-minority counties
c. majority counties
d. native-majority counties
The secret to choosing the best advertising strategy is developing a message that best
positions a firm’s product in the audience’s mind.
a. True
b. False
A _____ pricing strategy makes more flexible arrangements, compared to other
strategies, to set prices according to local marketplace conditions.
a. standard
b. product-line
c. market-differentiated
d. dual
A toy company based in India is interested in exporting their products to the United
States. Which of the following is a reason why the U.S. is an attractive market for
foreign companies?
a. U.S. consumers have a high level of discretionary income
b. The U.S. has a shrinking economy
c. Conflict between the political parties has led to concerns about political stability
d. U.S. consumers prefer purchasing imported products
If a product or service being sold requires relatively little special handling, marketers
typically emphasize personal selling in their promotional mix.
a. True
b. False
Seventeen-year-old Mai Ly has moved to the United States from Vietnam with her
parents because her father’s job transferred him to a different branch of his company.
They have decided to buy their groceries from a local supermarket that caters to Asian
cuisine due to their _________ influences. Mai Ly has recently passed her driver’s
license exam and has said that she would like to have her own car so that she doesn’t
have to share one with her parents. Her parents have agreed to purchase a car for her as
long as she pays for her own gas and insurance. This decision is an example of a
________ influence.
a. family; cultural
b. social; family
c. cultural; family
d. cultural; social
e. social; cultural
When discounts become normal elements of a competitive marketplace, other
marketing mix elements gain importance in purchase decisions.
a. True
b. False
As a marketer tasked with developing the packaging of the food products your company
makes, you are concerned with all of the following except:
a. leakproof seals
b. packaging to prevent shoplifting
c. utensils used to eat the product
d. tamper–resistant packaging
e. cost effectiveness
The Nielsen Co. carefully tracks Super Bowl viewership each year to help the network
that airs the game and other football broadcasters determine ad rates for the following
year. This is an example of:
a. frequency marketing.
b. buzz marketing.
c. database marketing.
d. internal marketing.
June knows that the students who patronize her campus ice cream shop are looking to
socialize as much as to consume a treat. In her advertising, she shows images of
customers enjoying each other’s company. June is segmenting based on:
a. Usage
b. Loyalty
c. 80/20 principle
d. Benefits sought
e. Pareto’s Law
Nonverbal cues like body language and tone of voice are important to the
communication process.
a. True
b. False
The amount of money available with people after buying necessities such as food,
clothing, and housing is referred to as _____.
a. basic income
b. gross income
c. discretionary income
d. personal income
In creating an ethical environment, employees prefer a complete list of “do’s and
don’ts” over an open environment where they can approach management with ethics
questions.
a. True
b. False
Electronic commerce and computer technologies have created unprecedented
opportunities in business today.
a. True
b. False
A SWOT analysis is designed to reveal, among other things, a firm’s core competencies,
which reflect its:
a. threats.
b. strengths.
c. opportunities.
d. vulnerabilities.
Which of the following terms refers to the combination of physical characteristics and
amenities that contribute to a store’s image?
a. Atmospherics
b. Simulation
c. Tableaux
d. Logistics
Celwyn works for a cosmetics company known for its anti–animal testing policies.
Recently, however, a reputable newspaper reported that the company had tested their
newest line of blush on rabbits.
Which of the following statements is most likely true about the company?
a. The company’s customers will become even more loyal.
b. The company’s relevance will increase as a result of this news report.
c. The company’s esteem will decrease as a result of this news report.
d. The company will become less differentiated from other cosmetics brands.
e. The company’s esteem will increase as a result of the coverage by a reputable
newspaper.
A manufacturer is prepared to introduce a new hair care product for exclusive use in
hair salons and spas. In determining the discount to apply to the product, which strategy
indicates that the manufacturer applied a trade discount legally?
a. owners of female hair salons receive a 10% higher discount
b. retailers of hair care products for men and women receive the same discount
c. wholesalers of hair care products for female salons have a 5% cash-back bonus
d. retailers receive an additional case of product for every 100 units purchased the first
week
e. wholesalers of hair care products for barber shops receive the same discount as retail
outlets
Convenience of location is unimportant to a consumer who wants to buy a specialty
product.
a. True
b. False
Susan works for Fashion Supply, a women’s clothing wholesaler. Her husband is
employed by Target, the popular retailer. Their older son has a job with a gourmet
butcher, which supplies top-quality cuts of meat to fancy restaurants. Their younger son
was just hired by Lumber Liquidators, the discount flooring seller. Despite the diversity
of their employers, all of Sue’s family members work in the ____ segment of the
business market.
a. commercial
b. institutions
c. consumer
d. trade
e. regional
Advertisers like radio for its ability to reach people while they drive because they are a
captive audience.
a. True
b. False
In the context of the business products, capital items that typically cost less and last for
shorter periods than installations are called _____.
a. shopping products
b. accessory equipments
c. supplies
d. impulse products