Why do new brands with a small market share tend to spend proportionately more for
advertising and sales promotion than those with a large market share?
a. Beyond a certain level of spending for advertising and sales promotion, diminishing
returns set in.
b. A certain minimum level of exposure is needed to measurably affect purchase habits.
c. Both are correct.
d. Neither is correct.
Unlike Hispanic Americans, most:
a. Asian Americans are born outside the United States.
b. Asian Americans’ average family income is less.
c. Asian Americans seldom retain their core Asian values.
d. Asian Americans are less educated.
Which of the following indicates the management uses of marketing research?
a. It improves the quality of decisionmaking.
b. It provides already existing data that pinpoints the kinds of people to approach and
their locations.
c. It can aid in formulating the problem statement.
d. It creates a mismatch between the researcher’s unique problem and the purpose for
which the research were originally gathered.
By synchronizing supply and demand, a service provider can reduce the problem of
______.
a. intangibility
b. heterogeneity
c. inseparability
d. perishability
People born between 1979 and 1994 and who comprise the largest group in America’s
workforce are known as
a. Millennials.
b. Gen Xers.
c. tweens.
d. teens.
Which of the following is the most popular technique for gathering primary data, in
which a researcher interacts with people to obtain facts, opinions, and attitudes?
a. Survey research
b. Secondary data research
c. Applied research
d. Quantitative research
Which of the following illustrates a difference between individual branding and family
branding?
a. In individual branding, different brand names are used for different products, whereas
in family branding, several different products are marketed under the same brand name.
b. Companies use individual branding when products do not vary in use or
performance, whereas companies use family branding when products vary greatly in
use or performance.
c. Individual branding identifies the brand of a part that makes up a product, whereas
family branding identifies the entire product.
d. Individual branding is used when two brands receive equal treatment, whereas family
branding is used when two brands borrow from each other’s brand equity.
When evaluating the impact of individual influences on consumer buying decisions, an
individual’s characteristics generally change greatly over the course of one’s life.
a. True
b. False
Which is true about the process of communication?
a. Most marketing communications are a twoway process.
b. Encoding the message refers to receiver’s interpretation of message.
c. Advertisement and sales presentations are examples of decoding the message.
d. Customer plays the role of sender in the communication process.
Traditional advertising provides more sophisticated methods of measuring how
marketers meet and interact with consumers than social media does.
a. True
b. False
While much of the excitement in social media has been based on websites and new
technology uses, much of the growth lies in:
a. the diminished demand for televisions.
b. new platforms like tablets and smartphones.
c. the division of society into economic strata.
d. the reduced demand for crowdsourcing.
Salespeople should practice tradingup techniques, whether customers need those
products or not, to increase overall product sales.
a. True
b. False
Kirksand Airlines is well known for providing excellent customer service to its flyers.
The staff members inquire about each flyer’s wants and needs, and listen carefully to
their responses. If a flyer has any specific requests, the staff members ensure that they
are immediately attended to. In this scenario, Kirksand Airlines illustrates
_______________, which has been found successful in spurring on the growth of
customer relationship management.
a. personalization
b. mass marketing
c. loyalty
d. technology
Rochelle wants to purchase a new gaming laptop. She wants to compare two of the
latest models of gaming laptops—with similar build, quality, and hardware
specifications—from different manufacturers. Rochelle reads reviews of each product
on reputable online forums before making her decision. In this scenario, Rochelle seeks
data ________________.
a. from a marketingcontrolled information source
b. through her own knowledge
c. from a nonmarketingcontrolled information source
d. through an internal information search
Threads Inc., an apparel manufacturer, employs personal selling to market goods. Its
employees handcraft products that are marketed by a professional team. In this case,
which of the following tactics should Threads Inc. adopt?
a. It should generate large amounts of publicity quickly.
b. It should refrain from educating the public about the company’s objectives.
c. It should make planned presentations to prospective buyers.
d. It should refrain from advertising and public relations.
In the case of private brands, overhead is low and there are no marketing costs.
a. True
b. False
The number of customers who dine at Eat and Den, a restaurant, varies on weekdays
and weekends. On days when customer traffic is less, Eat and Den incurs losses because
the food prepared on one day will not be fresh the next day. In this scenario, which of
the following characteristics of services is the reason for Eat and Den’s loss of revenue?
a. Heterogeneity
b. Perishability
c. Intangibility
d. Variability
As products enter the growth stage of the product life cycle, prices generally begin to
stabilize.
a. True
b. False
Which of the following compares customer relationship management (CRM) with
customer service management (CSM)?
a. Whereas the CRM process is designed to analyze consumer feedback to understand
trends, the CSM process is designed to ensure that marketing and advertising addresses
those findings.
b. Whereas the CSM process is designed to analyze consumer feedback to understand
trends, the CRM process is designed to ensure that marketing and advertising addresses
those findings.
c. Whereas the CRM process is designed to identify and build relationships with good
customers, the CSM process is designed to ensure that those customer relationships
remain strong.
d. Whereas the CSM process is designed to identify and build relationships with good
customers, the CRM process is designed to ensure that those customer relationships
remain strong.
The ability to place oneself in someone else’s shoes, which enables salespeople to
understand the client’s situation, is called ________.
a. assertiveness
b. ego strength
c. risk taking
d. empathy
In most cases, in order for a firm to succeed in a competitive market, it needs to have a
clear understanding of the marketplace and produce products based on the wants and
needs of the customers, rather than expecting the customers to want the products
manufactured solely based on the assessment of the firm’s internal capabilities.
a. True
b. False
An online money transfer company that allows consumers to send money directly to
bank accounts in several countries around the world is an example of a service firm.
a. True
b. False
In the context of SWOT analysis, marketers can identify strengths and weaknesses by
focusing on:
a. employee capabilities.
b. aspects of the marketing environment.
c. demographic forces.
d. macroenvironmental factors.
A shopping product is a particular item for which consumers search extensively and are
very reluctant to accept substitutes.
a. True
b. False
A strategic channel alliance is a cooperative agreement between business firms to use
the other’s already established distribution channel.
a. True
b. False
MaxNutri Inc. sells cookies and nutrition bars. The marketers at MaxNutri are trying to
come up with new and attractive packaging designs for its cookies. In this scenario,
MaxNutri is working on its _____.
a. purchase strategy
b. distribution strategy
c. advertising strategy
d. product strategy
In the context of a marketing mix, the product includes:
a. the name of the brand.
b. the point of purchase.
c. the elements of advanced strategic planning.
d. personal selling.
Carrying over a wellknown and respected brand name from one product category to
another product category is referred to as:
a. brand stretching.
b. brand extension.
c. brand building.
d. brand promotion.
Research shows that when making ethical decisions, if the length of time between the
action and its negative consequences is short, marketers are more likely to perceive the
action as unethical.
a. True
b. False
Website metrics refer to clicks, clickthrough rates, and percentage of traffic.
a. True
b. False
Which form of distribution is aimed at maximum market coverage?
a. Narrow distribution
b. Intensive distribution
c. Selective distribution
d. Exclusive distribution
Which of the following is accurate with regard to Asian Americans?
a. The Asian American population growth has been fueled primarily by immigration.
b. Asian Americans embrace the values of the larger U.S. population and don’t follow
the cultural values of their particular subgroup.
c. Asian Americans usually don’t speak their native tongue at home.
d. A large percentage of Asian Americans categorize themselves as “American.”
Which of the following statements is true of social commerce?
a. Marketers cannot customize their products per the needs of specific groups of
consumers.
b. It relies on usergenerated content on websites to assist consumers with purchases.
c. Marketers often control the message, the medium, and the response.
d. It cannot offer consumers the scope of information needed to make knowledgeable
decisions on purchases and services.