Creating _____ utility is the responsibility of the production function.
a. place
b. form
c. time
d. ownership
Freight carriers often charge class rates as a reward for either regular business or a large
shipment.
a. True
b. False
The decision about whether to delete products from the product line is usually faced
during the late growth and early maturity phases of the product lifecycle.
a. True
b. False
The ______ is a powerful regulatory agency that has assumed jurisdiction over the
safety of every consumer product except food, automobiles, and a few other products
regulated by other agencies.
a. DHSS
b. FDA
c. CPSC
d. OSHA
The individual who creates and oversees the look and feel of an online community,
Facebook page, or other branded content for a particular company is called a(n) _____.
a. online community manager
b. social media designer
c. content programmer
d. blogger
In the United States, four major music companies receive 80 percent of recording
revenues. Such a market structure is termed as a(n) _____.
a. monopsony
b. oligopoly
c. monopoly
d. duopoly
Makson’s, a manufacturer of agricultural fertilizers and pesticides, modifies the prices
of its products exported to foreign markets to include the marketing costs in foreign
markets but maintains the same price in all its domestic markets. Its products are more
expensive in international markets compared to its domestic market where it is sold at a
lower price. This pricing strategy used by Makson’s to differently price its products is
known as:
a. market-differentiated pricing.
b. competitive pricing.
c. dual pricing.
d. standard worldwide pricing.
A(n) _____ gathers buyers and sellers in one location and allows potential buyers to
inspect merchandise before submitting competing purchase offers.
a. truck jobber
b. auction house
c. commission merchant
d. selling agent
Carmen is a marketer for a global consumer products company. She is designing a
promotional campaign for a foreign market and wants to ensure that the promotional
campaign is clearly understood by the target consumers. She is also taking special care
to see that the campaign is free from controversies and does not inadvertently offend
anyone. In this scenario, Carmen is specifically trying to take into account variables of
the country’s _____ environment.
a. socialcultural
b. politicallegal
c. competitive
d. economic
Laura decided to quit her job and travel for a year. She can be considered a part of the
population that is unemployed.
a. True
b. False
A consultant has given you a list of questions to help determine a competitive strategy
for your online editing business. Which of the following questions were most likely
included on the list?
a. Should we compete in the editing business?
b. Should we compete in the student market, or in the professional writing market?
c. How should we compete in the editing business?
d. Why should we compete in the editing business?
Advertisers like radio for its ability to reach people while they drive because they are a
captive audience.
a. True
b. False
ANS: True
Line extension is the strategy of attaching unrelated products to a known brand name to
gain instant recognition for the new offerings.
a. True
b. False
Today’s successful sales representative focuses on creating value for their own firm and
generating revenue by producing quick sales.
a. True
b. False
Marketers often use blog postings to educate consumers and business customers about
new products.
a. True
b. False
The follow-up step in the sales process allows the salesperson to psychologically
reinforce the customer’s original decision to buy.
a. True
b. False
Lateral partnership is a relationship that involves customers within an organization.
a. True
b. False
The agreements that set terms for various aspects of commercial relations with other
countries such as the right to conduct business in the treaty partner’s domestic market
are called _____.
a. treaty of establishment, commerce and navigation
b. free trade agreements
c. trade and investment framework agreements
d. friendship, commerce, and navigation treaties
_____ is a form of exporting whereby goods and services are bartered rather than sold
for cash.
a. exporting
b. WTO
c. infrastructure
d. exchange rate
e. tariff
f. import quota
g. dumping
h. ISO certification
i. foreign licensing
j. multinational corporation
k. global marketing strategy
l. multidomestic marketing strategy
m. countertrade
n. related party trade
o. exchange control
p. customs union
q. CAFTA-DR
r. importer
s. embargo
t. franchise
Products that require demonstration or trials are better sold in person than through
company’s marketing websites.
a. True
b. False
Which of the following is one of the major policy initiatives of the WTO?
a. Increasing the average level of education worldwide
b. Liberalizing world financial services
c. Promoting and protecting the environment
d. Regulating automobile production by less-advanced nations
A(n) _____ emphasizes lower prices for well-known brand-name products, high
product turnover, and limited services.
a. stock-keeping unit (SKU)
b. markup
c. markdown
d. retail convergence
e. scrambled merchandising
f. atmospherics
g. broker
h. general merchandise retailer
i. category killer
j. rack jobber
k. supercenter
l. auction house
m. specialty store
n. retailers
o. mass merchandiser
p. truck jobber
q. direct marketing
r. drop shipper
s. planned shopping center
t. wheel of retailing
Order processing is an important component of the physical distribution system. What
are four major activities involved in order processing?
a. credit check; replenish inventory; report a stockout; make accounting entries
b. locate the order; unitize the order; containerize the order; ship the order
c. break-bulk the order; record the sale; ship the order; adjust inventory records
d. make accounting entries; ship the order; report a stockout; break-bulk the order
e. credit check; record the sale; make accounting entries; ship order and adjust
inventory records
Jamie works for a local bank. Whenever a new customer opens a checking account,
Jamie makes sure to mention some of the other financial services the bank offers. Jamie
is engaged in:
a. cross-selling.
b. team selling.
c. transaction selling.
d. virtual selling.
Which of the following offers the fastest mode of transportation?
a. Water freight
b. Pipelines
c. Air freight
d. Railroads
An Internet service provider (ISP) loses approximately 12 percent of its existing
customers every year. According to this information, the ISP is experiencing:
a. market reorganization.
b. customer churn.
c. group polarization.
d. social referencing.
A statement such as “to hit the 300 employee mark by the end of the year” is typically a
part of a mission statement.
a. True
b. False
China has been scrutinized for exporting shrimp into the United States at extremely low
prices. The United States inspectors suspect that China is selling the shrimp at
extremely low prices – possibly even lower than what Chinese consumers might pay.
This practice is known as _______.
a. dumping
b. exchange control
c. flooding
d. pushing
A vendor-managed inventory is an inventory management system in which the seller—
in an existing agreement with a buyer—determines how much of a product is needed.
a. True
b. False
A memo from your firm’s legal counsel reviews the branding elements that can receive
trademark protection under United States law. You have just developed a unique shape
for the bottle of a new body wash. Can this be trademarked?
a. Yes, as long as it incorporates the brand name.
b. Yes, because unique shapes can be trademarked.
c. No, because only names and logos can be trademarked.
d. No, because packaging elements cannot be trademarked.
e. Yes, as long as it is labeled with the brand logo.
The PIMS project discovered a strong negative relationship between a firm’s product
quality and its return on investment.
a. True
b. False