A firm is most likely to opt for a family brand to market its products when the products
are:
a. sold only to a single large retail chain to protect the manufacturer’s reputation.
b. sufficiently different so as not to compete directly with each other.
c. sold in different geographic markets.
d. similar in quality and are closely related to one another.
Jake is determining which customers should be included in a study sample. According
to this information, Jake is in which stage of the marketing research process?
a. Formulating a hypothesis
b. Collecting data
c. Creating a research design
d. Defining a problem
A venture team functions as an entity separate from the basic organization.
a. True
b. False
The size and organizational form of the marketing research function is usually
independent of the structure of the company.
a. True
b. False
The governmental regulations that affect marketing practices are mainly for advertising
and distribution, and do not place any restrictions and prohibitions on the design and
packaging of products.
a. True
b. False
Emarketing can significantly reduce the costs of reaching a wide audience for small
businesses.
a. True
b. False
Which of the following is a disadvantage of sales promotion as a promotional strategy?
a. It elicits a delayed consumer response.
b. It does not provide short-term increase in sales.
c. It is difficult to measure its promotional effectiveness.
d. It is difficult to differentiate from competitors’ efforts.
Every “regulatory” price increase is a tax.
a. True
b. False
Sales maximization can also result from nonprice factors such as service and quality.
a. True
b. False
Bullseye, Inc., an online marketing company that designs marketing campaigns for
firms, is developing a social media marketing plan for a consumer goods company. The
development team has created the entire plan and is now trying to compile the salient
features of the plan that cites the reasons for adopting it. The development team is
writing the _____ of the marketing plan.
a. executive summary
b. overview
c. analysis component
d. body
A firm minimizes its profits when marginal costs equal marginal revenues.
a. True
b. False
A market structure characterized by homogeneous products in which there are so many
buyers and sellers that none has a significant influence on price 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
Interactive television delivers valuable data on real consumer behavior and attitudes
toward brands.
a. True
b. False
The majority of the Hispanic population is first-generation living in the United States.
a. True
b. False
An apparel manufacturer decides to create a line of t–shirts depicting the most popular
soft drinks on the market. The images would include Coke, Pepsi, Sprite, Mountain
Dew, and Dr. Pepper. The apparel manufacturer will have to complete which of the
following practices before creating this line of t–shirts?
a. Line extension
b. Brand extension
c. Brand licensing
d. Brand engagement
Once consumers have used a product, seen it advertised, or noticed it in a store, it
moves from the unknown to the known category, which increases the probability that
they will purchase it.
a. True
b. False
A(n) _____ typically handles only part of a single product line.
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
In Australia, consumer spending in the past few months has seen an upward trend, and
buyers are willing to spend more on premium brands. From this pattern, we can say that
Australia is in the _____ stage of the business cycle.
a. recovery
b. prosperity
c. recession
d. depression
Secure networks used for emarketing and accessible through a firm’s website by
external customers, suppliers, or other authorized users for purposes of collaboration
are called:
a. cybernets.
b. extranets.
c. intranets.
d. ethernets.
Personal selling skills and user preferences carry more weight in decentralized
purchasing situations than in centralized buying.
a. True
b. False
Penetration pricing is often used in a market in which a new product is likely to face
strong competition when introduced.
a. True
b. False
Branding helps firms build and maintain identity and competitive advantage for their
products.
a. True
b. False
The process through which a firm attempts to control downstream distribution is called
_____ integration.
a. balanced
b. horizontal
c. forward
d. associative
Kobe is an account executive with Stryker, a medical device company. He and his team
have prepared a document to submit to a regional hospital to become their primary
vendor for medical devices within the hospital system. The document will be reviewed
by the hospital purchasing department and Stryker will be compared to other suppliers
vying for the opportunity to assist with the hospital with their medical device needs.
What stage in the buying process does this reflect?
a. acquire and analyze proposals
b. recognize problem and general solution
c. describe characteristics and quantity
d. select order routine
The term “exchange rate” refers to the price of one nation’s currency in terms of
another country’s currency.
a. True
b. False
A manufacturing firm retains more control over the export process when it deals with
an export trading company rather than dealing with an export management company.
a. True
b. False
_____ is a personal selling approach that focuses on establishing a sustained
buyer-seller relationship with customers through regular contacts over an extended
period.
a. Telemarketing
b. Team selling
c. Inside selling
d. Relationship selling
A wide variety of services such as charge accounts, delivery, gift wrapping, and liberal
return privileges are most likely to be associated with _____.
a. department stores
b. clearing houses
c. merchandise mart
d. industrial distribution stores
Sandra is surfing the Web. After entering a popular site for attorneys, a separate window
suddenly appears on the screen promoting a new line of legal software. This is an
example of a _____ ad.
a. banner
b. popup
c. search marketing
d. preroll
Nicole works for Harley Davidson and is responsible for managing the Harley Owners
Group Facebook, Twitter, and Instagram accounts to create engagement with customers
through these various forums. Her job is primarily concerned with
a. managing online communities
b. social media analytics
c. brand management
d. social media strategy
An ebusiness vendor who creates products, such as clothing or computers, to the exact
specifications of individual customers is practicing:
a. personalization.
b. interactive marketing.
c. integrated marketing.
d. righttime marketing.
Paid, nonpersonal communication through various media about a business firm,
not-for-profit organization, product, or idea by a sponsor identified in a message
intended to inform or persuade members of a particular audience is called _____.
a. sales promotion
b. advertising
c. product placement
d. direct marketing
Hormel Foods owns the brand, “Wholly Guacamole” but has chosen NOT to display the
Hormel name or logo on the packaging. Which term is most appropriate for the
“Wholly Guacamole” brand?
a. individual brand
b. family brand
c. captive brand
d. manufacturer’s brand