Which of the following practices can help businesses gain a cost competitive
advantage?
a. Using simplified production techniques
b. Using expensive raw materials
c. Customizing products with extra features
d. Focusing on serving marginal customers
When properly created, a strategic business unit (SBU) of a large company:
a. has a specific target market.
b. plans collaboratively with other SBUs of the company.
c. has no competitors.
d. shares the mission of its parent company.
Selfregulation refers to the voluntary acceptance of norms established by
nongovernmental entities.
a. True
b. False
The rules that people develop as a result of cultural values and norms are called
_______.
a. morals
b. laws
c. selfregulations
d. socialregulations
Which of the following are NOT stakeholders in a typical corporation?
a. Employees
b. Customers
c. Local communities
d. Competitors
According to family life cycle segmentation, middleaged married couples with or
without children:
a. are difficult to promote by advertisement.
b. are better off financially than young married couples with or without children.
c. buy medical care products that aid health, sleep, and digestion.
d. have the highest purchase rate.
Asif, a member of a local baseball team, broke his bat during a practice match. With the
final match scheduled for the next day, Asif urgently required a new bat. Therefore, he
placed an order on Duke.com, an online portal for sporting goods, and he dropped in at
its nearest physical store to pick up his order. This is an example of the use of _____.
a. microtargeting
b. clickandcollect
c. telemarketing
d. etailing
Which of the following statements is true of nonprobability samples?
a. In a nonprobability sample, the probability of selection of each sampling unit is not
known.
b. Nonprobability samples are expensive.
c. In a nonprobability sample, every element has a known statistical likelihood of being
selected.
d. Nonprobability samples cannot be used in marketing research.
The Hunt, a liquor store, is famous for its unique and extensive collection of alcoholic
beverages. Its employees possess uptodate knowledge of the liquor available in the
store, which allows them to assist customers in their purchasing decisions. The Hunt is
an example of a _____.
a. supermarket
b. specialty store
c. warehouse club
d. convenience store
Short message service (SMS) is different from multimedia messaging service (MMS) in
that:
a. SMS allows 960character text messages, whereas MMS allows 160character text
messages.
b. SMS is designed specifically for viewing pictures and navigation on mobile devices,
whereas MMS does not have such features.
c. SMS does not allow the attachment of images, videos, and ringtones to text
messages, whereas MMS does.
d. SMS does not require the Internet, whereas MMS requires the Internet to function.
A(n) _____ strategy is unwise to use when a brand name has a negative or vulgar
connotation in the local language.
a. adaptationsandmodifications
b. onebrandname
c. differentbrandnameindifferentmarkets
d. multiplebrandname
_____ is market segmentation on the basis of personality, motives, lifestyles, and
geodemographics.
a. Benefit segmentation
b. Family life cycle segmentation
c. Usagerate segmentation
d. Psychographic segmentation
Which of the following is an example of a competitive advantage due to a
product/service differentiation?
a. Receipt of government subsidies
b. Control of overhead costs
c. Establishment of a brand name
d. Procurement of inexpensive raw materials
According to the gap model of service quality, the gap between the service that
customers receive and the service they want
a. can be positive or negative depending on the quality of service that was provided.
b. can be closed by providing advertising campaigns that promise more than the firm
can deliver.
c. results from management’s ability to translate customers’ needs into delivery systems
within the firm.
d. is the result of a lack of understanding or a misinterpretation of the customers’ needs,
wants, or desires.
_________ refers to data previously collected for any purpose other than the one at
hand.
a. Secondary data
b. Primary data
c. Marketing research
d. Management research objective
Which of the following is significant for marketers to understand about the use and
outcomes of social media?
a. Marketers must realize that although they control all relevant content on social media
sites, they must let users think that they, the users, do.
b. The ability to share experiences quickly and with such large numbers of people
amplifies the impact of word of mouth.
c. Social media provide very basic methods of measuring how marketers meet and
interact with consumers.
d. Social media is no substitute for traditional advertising as the former have little
impact on a company’s bottom line.
An implied warranty is a written guarantee that the good or service is fit for the purpose
for which it was sold.
a. True
b. False
What is the similarity between a stock market and a labor market?
a. Both use a barter system to facilitate the exchange of products.
b. Both are composed of people who are unwilling to spend large sums of money for
products or services.
c. Both are composed of people with specific wants that can be satisfied by particular
product categories.
d. Both deal in selling highend, consumer durable products.
_____ is a business’s concern for the longrange welfare of both the company and its
relationship to the society within which it operates.
a. Preconventional morality
b. Moral relativism
c. Corporate selfdealing
d. Corporate social responsibility
Which of the following firms is most likely to follow a niche strategy?
a. Libra Inc., a motor company, adopts new production techniques to achieve economies
of scale.
b. Alpha Electronics dissolves one of its strategic business units.
c. Venus Inc. sells health and beauty products similar to the ones available in the
market.
d. Relish, a confectionery store, sells handcrafted chocolates in only one city.
Which of the following is true of the dynamic nature of culture?
a. The least defining element of a culture is its values.
b. Culture prohibits its environment from changing.
c. Culture teaches etiquette regarding technology.
d. Consumers are born with a cultural identity.
Prisly Inc. is a multinational company that specializes in manufacturing and selling
highend cars. It launches a new car, the Gwen 2.0, that becomes highly successful in the
market because of its economical price and excellent features. However, this leads to a
significant decline in the sales of Prisly Inc.’s other cars. This scenario exemplifies
_____.
a. segmentation
b. differentiation
c. cannibalization
d. personalization
Which of the following is NOT a goal of promotion?
a. Inform the target audience.
b. Connect with the audience.
c. Persuade the target audience.
d. Discourage the audience from buying competitors’ products.
Causerelated marketing is a marketing relationship based on corporate giving, such as
making philanthropic donations.
a. True
b. False
Providing great customer service is one of the most challenging elements in the retail
mix because:
a. customer relations do not increase brand value.
b. customers are indifferent to service quality.
c. customer expectations for service vary greatly.
d. customers do not trust retail salespeople.
Direct and personal marketing efforts will continue to grow to meet the needs of
consumers who no longer have the time to spend shopping and making purchase
decisions. Which tool helps marketers meet this demand of consumers?
a. Positioning
b. Perceptual mapping
c. Personalization
d. CRM
Agents and brokers are wholesaling intermediaries who take title to the goods and
services they market.
a. True
b. False
The point at which a customer and a company representative exchange information and
develop learning relationships is called __________.
a. interaction
b. knowledge exchange
c. knowledge management
d. touch points
In terms of making a purchase, the value of a product can derive from an enduring
belief shared by a society that a specific mode of conduct is personally or socially
preferable to another mode of conduct.
a. True
b. False
With reference to message transmission, in which case is the reception of the message
normally high?
a. When a sales pitch is given by a sales representative to a potential client
b. When the message is communicated through mass media
c. When the message is cluttered by noise
d. When the message is communicated through newspapers or television
With regard to business products, which of the following statements is true of major
equipment?
a. It is generally marketed by local industrial distributors.
b. It is sold through a longer distribution channel than accessory equipment.
c. It is often custom designed for each customer according to requirements.
d. It is less expensive and shorterlived than accessory equipment.
A business that requires a greater expenditure for equipment than for labor is called:
a. capital intensive.
b. labor intensive.
c. market intensive.
d. production intensive.
The International Monetary Fund (IMF) makes shortterm loans to member nations that
are unable to meet their budgetary expenses.
a. True
b. False
Which statement is true of market segmentation?
a. It helps marketers design marketing mixes that match the characteristics of one or
more segments.
b. It allows marketers to use an undifferentiated targeting strategy.
c. It allows marketers to adopt a single marketing mix across all market segments.
d. It helps marketers focus on satisfying customer needs.