To take advantage of a downward-sloping experience curve, a company must do all of
the following EXCEPT ________.
A) increase the product’s price
B) be able to sell the higher volume of product
C) price its product lower
D) increase its production output
E) decrease its costs through experience gained
The owners of a manufacturing firm in Ohio have developed a core network of
suppliers to ensure an uninterrupted supply of products. This is an example of
________.
A) capability management
B) a supply bottleneck
C) asset management
D) backsourcing
E) supplier development
Which of the following statements is most likely true about radio as an advertising
medium?
A) Radio advertising is typically quite expensive.
B) Radio ensures good attention from the target audience.
C) Radio offers very low audience selectivity.
D) Radio prohibits the use of segmentation strategies.
E) Radio advertising is characterized by good local acceptance.
Which of the following is the first stage in the new product adoption process?
A) awareness
B) adoption
C) evaluation
D) interest
E) trial
Dividing the market into various groups of customers that a company may serve is
called ________.
A) market segmentation
B) positioning
C) customization
D) target marketing
E) differentiation
After selecting a sweater on the Land’s End Web site, Kelly was asked to fill in details
for the customer database. Kelly was given a form that required her to fill in her name,
date of birth, and e-mail address. Kelly then checked a box that was next to the
following statement: “Yes, I would like to receive weekly promotional information from
Land’s End online.” Which of the following practices is evident from this scenario?
A) e-mail hosting service
B) e-mail spoofing
C) catalog marketing
D) contextual advertising
E) permission-based e-mail marketing
Which of the following is one of the five major promotion tools?
A) market penetration
B) strategic positioning
C) product line filling
D) market diversification
E) direct and digital marketing
Which of the following is true about business-to-business e-procurement?
A) E-procurement increases transaction costs for suppliers.
B) Because of an overwhelming demand, e-procurements usually have a huge time gap
between order and response.
C) Many buyers now use the power of the Internet to pit suppliers against one another
and search out better deals, products, and turnaround times on a purchase-by-purchase
basis.
D) E-procurement doesn’t enhance customer-supplier relationships.
E) Due to extensive paperwork, the relatively important strategic issues, such as finding
better supply sources and working with suppliers to reduce costs and develop new
products, are sidelined.
Andrew Levitt runs a retail store in Norristown. Andrew’s store stocks cold weather
products as Norristown mostly has sub-zero temperatures. Which of the following is
evident here?
A) local marketing
B) concentrated marketing
C) segmented marketing
D) mass marketing
E) direct marketing
The purpose of a training program for salespeople is to teach them about all of the
following EXCEPT ________.
A) customers’ buying habits
B) customers’ buying motives
C) competitor strategies
D) industry history
E) company goals
Service ________ means that the quality of services depends on who provides them as
well as when, where, and how they are provided.
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity
Companies that take a proactive stance toward the marketing environment are most
likely to ________.
A) develop strategies to change the environment in their favor
B) passively accept the marketing environment
C) resist organizational change
D) discourage innovation
E) consider technological advances more disruptive than beneficial
During portfolio analysis, a company ________ after identifying the key businesses that
make up the company.
A) formulates a short-term marketing plan
B) assesses the attractiveness of its various SBUs
C) assesses its strengths and weaknesses
D) performs a SWOT analysis
E) assesses the effectiveness of its various channel intermediaries
Keith, a clothing store owner, offers product suggestions to customers based on their
current purchases. Which of the following is Keith trying to increase?
A) shared value
B) share of customer
C) social responsibility
D) customer-generated marketing
E) customer loyalty
Which of the following is a trend that depicts the increasingly nontraditional nature of
today’s American families?
A) the low percentage of working women in the workforce
B) the low percentage of married couples with children
C) the sharply declining number of dual-income families
D) the sharply declining number of stay-at-home dads
E) the decreasing reliance on convenience foods and services
The boom in Internet marketing has created a new set of social and ethical issues.
Critics worry most about ________.
A) accessibility
B) puffery in advertising
C) online privacy issues
D) sustainability
E) issues pertaining to efficiency
Which of the following is NOT an example of product-oriented mission statements?
A) “We are an online library.”
B) “We run theme parks.”
C) “We sell athletic shoes.”
D) “We sell memorable experiences.”
E) “We rent hotel rooms.”
When consumers are highly involved with the purchase of an expensive product and
they perceive significant differences among brands, they most likely will exhibit
________.
A) consumer capitalism
B) complex buying behavior
C) consumer ethnocentrism
D) dissonance-reducing buying behavior
E) variety-seeking buying behavior
Price setting is usually determined by ________ in large companies.
A) top managers
B) external stakeholders
C) product managers
D) non-executive employees
E) the sales department
Often, international researchers must collect their own primary data because ________.
A) reliable secondary data is both scarce and difficult to find
B) information from commercial online databases is unreliable
C) it is cheaper to obtain primary data than secondary data
D) it is easier to obtain primary data than secondary data
E) it is illegal in some countries to track customer data
Mobile marketing is used to enrich the brand experience, stimulate immediate buying,
or ________.
A) decrease advertising costs
B) help friends contact friends
C) make shopping easier
D) create new customer relationships
E) find new suppliers
Which is NOT one of the four orientations a company may have?
A) customer
B) product
C) competitor
D) market
E) cost
The strongest brands are positioned on ________.
A) desirable benefit
B) good packaging
C) service inseparability
D) strong beliefs and values
E) product attributes
The customers of Parry’s Hair Salon have noticed that the quality of a haircut depends
on who provides it as well as when, where, and how the service is provided. Which of
the following characteristics of service is evident in this instance?
A) service intangibility
B) service inseparability
C) service perishability
D) service variability
E) service distinction
________ are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style.
A) Shopping products
B) Convenience products
C) Unsought products
D) Capital items
E) Supplies and repair services
Which of the following is NOT a type of joint venturing?
A) joint ownership
B) management contracting
C) direct export
D) licensing
E) contract manufacturing
Which of the following is most likely a risk associated with experience-curve pricing?
A) High-volume production facilities are unable to meet demand.
B) New technology often leads to productivity problems.
C) Demand for the product fluctuates unpredictably.
D) Consumers tend to prefer new brands over established ones.
E) Aggressive pricing often gives a product a cheap image.
Which of the following is true with regard to services?
A) Services refer to purely tangible products.
B) Services are a form of product that consists of activities, benefits, or satisfactions
offered for sale.
C) Services can be stored for later use.
D) Services can be easily separated from their providers.
E) Services are tangible product offerings whose quality can be easily measured.
Comparative advertising is also known as ________ advertising.
A) attack
B) institutional
C) covert
D) reminder
E) informative
Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity.
This is an example of a(n) ________.
A) new product development
B) acquisition
C) joint venture
D) licensing contract
E) divestment
Hilton helps others run their hotels by providing the management know-how. This type
of joint venture is known as ________.
A) contract manufacturing
B) licensing
C) management contracting
D) joint ownership
E) direct investment
Government markets consist of government agencies that buy goods and services
________.
A) to produce public services
B) to resell at a profit
C) for further processing
D) for personal consumption
E) that are generally of poor quality
Which of the following has become a major packaging concern in recent years?
A) underpackaging
B) legibility of print
C) colors used
D) product safety
E) durability
Touchscreen kiosks, handheld shopping assistants, interactive dressing-room mirrors
and virtual sales associates are all examples of how retailers use technology to
________.
A) maintain inventory costs
B) send information between stores
C) meet consumers’ expectations
D) produce more accurate forecasts
E) interact with suppliers