A limitation of revenueoriented pricing is that
a. it does not focus on maximizing the surplus of income over costs.
b. it cannot be used by manufacturing companies.
c. determining costs can be difficult for many services.
d. the profit goals of a company are not taken into account.
Which response describes how serviceproviding companies would most likely counter
increasing competition?
a. Firms would widen their range of supplementary services because reducing them is
almost always disastrous.
b. Firms would emphasize supplementary services or may position themselves by
greatly reducing those services.
c. Firms would focus entirely on their core service as supplementary services mostly do
not attract customers.
d. Firms would reduce their supplementary services and may also offer a less rigorous
form of their core service.
Which of the following describes vending as a nonstore option?
a. Retailers generally avoid opportunities to sell via vending as it is too impersonal.
b. A downside of vending is that it is yet to integrate cashless payment into its systems.
c. Automatic vending can serve customers seeking luxury items such as champagne.
d. Its users are generally time strapped and live in rural or suburban areas.
If an advertiser wants to enhance the sales of a specific good or service, _____ should
be used.
a. institutional advertising
b. product advertising
c. corporate advertising
d. advocacy advertising
_____ is a means of displaying or graphing, in two or more dimensions, where the
products, brands, or groups of products are located in customers’ minds.
a. Multidimensional scaling
b. Product differentiation
c. Perceptual mapping
d. Product tracing
In an interactive space, earned media include:
a. display advertising.
b. viral videos.
c. purchased advertisements.
d. paid search words.
Nonprofit organizations account for a little over ______ percent of the economic
activity in the United States.
a. 5
b. 10
c. 20
d. 30
Which of the following is characteristic of companies that embrace a niche market
strategy?
a. The strategy is often adopted by small companies with limited resources.
b. The strategy is employed in a market segment that has low growth potential.
c. The strategy is used to position the company as the longterm, lowcost competitor in
an industry.
d. The company typically removes frills and options from the product or service slated
for its niche market.
Gross margin is how much the retailer makes as a percentage of ______.
a. profit after the discount on the goods sold is subtracted
b. sales after the cost of the goods sold is subtracted
c. sales after the discount on the goods sold is added
d. the cost of all goods after the profit is subtracted
Providing superior service to a firm’s most valuable customers is likely to result in a
maximization of the total business value generated over time.
a. True
b. False
Industrial distributors are channel members that buy but do not take title to products.
a. True
b. False
Establishing channelwide network coherence is a key factor in maintaining service
quality.
a. True
b. False
When negotiating a purchase in business marketing, final contracts are often short and
precise.
a. True
b. False
At postconventional morality level of ethical development, people are less concerned
about what others think about them and more concerned about how they handle their
problems over the long run.
a. True
b. False
Original equipment manufacturers or OEMs include all individuals and organizations
that buy business goods and incorporate them into the products they produce for
eventual sale to other producers or to consumers.
a. True
b. False
In the service industry, one drawback to using revenueoriented pricing is that
determining costs is difficult for many services.
a. True
b. False
Many retailers have found that natural lighting, either from windows or skylights, can
lead to increased sales.
a. True
b. False
When considering the diffusion of innovation regarding new products, a dominant
characteristic of innovators is tradition.
a. True
b. False
Which of the following is true about the different stages of business development of a
multinational corporation?
a. In the second stage, companies operate in one country and sell into others.
b. In the third stage, multinationals operate an entire line of business in another country.
c. The third stage has evolved primarily due to the Internet and involves mostly
hightech companies.
d. The top executives and core corporate functions of a multinational corporation
operate in the same country.
A source suggested to Rubbermaid the idea of the Sidekick, a litterfree lunch box.
Rubbermaid could place some of its plastic containers inside a lunch box and sell the
box as an alternative to plastic wrap and paper bags. The source saw this opportunity
because of being closer to the consumers than the manufacturer was and, thus, more
aware of customer needs. Which of the following was likely the source?
a. The product’s distributor
b. The product’s competitor
c. Customers
d. A company employee
Determining a target market is optional while creating the retailing mix.
a. True
b. False
Which of the following strategies of handling a brand name when marketing globally is
appropriate when the name cannot be pronounced in the local language or when the
brand name is owned by someone else?
a. Adaptations and modifications
b. Transactional marketing strategy
c. Onebrandname everywhere
d. Transformational marketing strategy
Melrow Inc., a U.S. firm, suffers heavy losses and lays off many of its employees. To
reduce its manufacturing costs, it shifts its production units to another country where
labor costs are less. In this scenario, Melrow Inc. is engaged in _____.
a. licensing
b. outsourcing
c. franchising
d. inshoring
Which of the following is NOT true of promotional strategies?
a. Promotional strategies have remained stagnant over a period of years.
b. Targeted customer segments have become more difficult to reach.
c. In today’s competitive world, marketers should think more creatively to survive.
d. Most modern campaigns utilize a variety of newer tactics.
______________ is when a product or company attempts to give the impression of
environmental friendliness whether or not it is environmentally friendly.
a. Family branding
b. Informational labeling
c. Greenwashing
d. Captive branding
Websites that allow consumers to post, read, rate, and comment on opinions regarding
all kinds of products and services are called ______________ sites.
a. social networking
b. media sharing
c. social news
d. review
A company’s product sales as a percentage of total sales for that industry are known as
__________.
a. market share
b. revenue
c. return on investment
d. profit
Titan Company manufactures watches for all age groups, gender, and income and also
for all important family occasions. This company exemplifies
________________________.
a. income segmentation
b. ethnic segmentation
c. gender segmentation
d. family life cycle segmentation
An alternative to a commercial spot is a(n)_____, a thirtyminute or longer
advertisement, which is relatively inexpensive to produce and air.
a. podcast
b. premium
c. sweepstakes
d. infomercial
Unlike experiential learning, conceptual learning occurs when an experience changes
your behavior.
a. True
b. False
Which statement is true of cause marketing?
a. It involves the cooperative efforts of a forprofit firm and a nonprofit organization for
their mutual benefit.
b. It describes a marketing relationship based on a straight donation.
c. It occurs when government agencies and nonprofit agencies launch social campaigns.
d. It seldom helps companies increase the sale of their products.
With reference to the General Electric model for selecting strategic alternatives, which
of the following refers to how well placed in a market an organization needs to be to
take advantage of opportunities?
a. Business position
b. Experience curve
c. Market attractiveness
d. Marketing myopia