Which of the following variables of service quality best represents the readiness to
serve one’s customers?
a. Tangibles
b. Assurances
c. Responsiveness
d. Empathy
You are asked by a non-marketing executive of your hip-hop music company to clarify
some financial language she heard at a recent annual presentation to investors. She asks
you to give her a simple one-sentence definition of “breakeven analysis.”
Required:
Which of the following definitions meets her request for a simple one-sentence
definition of “breakeven analysis”?”
a. “We have been cutting records for years, so our customers are used to paying a
certain amount for our albums. We keep our price constant to get repeat business.”
b. “We first do our research to find out what price our competitors are selling their
records for. Then we use that number to figure out how many records we need to cut to
make a larger profit than our competitors.”
c. “We first figure out the number of records we need to sell at a set price minus records
returned for refunds. That amount of money must be enough to cover the total costs of
our producing the records.”
d. “We use all our information from the previous year’s sales, then we add 10 percent to
the production and 10 percent to the price.”
e. “We want to make sure that we sell all the albums that we produce, so we start out at
a full price, and make discount adjustments along the way.”
Full-function merchant wholesalers include:
a. sales branches and mail-order wholesalers.
b. industrial distributors and rack jobbers.
c. truck jobbers and drop shippers.
d. cash-and-carry wholesalers and auction houses.
Karen prefers to buy Chemtec’s cleaning products over other brands if they are easily
available in the market. Karen is in the brand insistence stage of brand loyalty.
a. True
b. False
As you plan for the future of your online music service, you want to expand into the
four countries that lead the world in number of Internet users. These countries include:
a. China
b. the United States
c. Japan
d. Germany
e. Canada
When a chain store sells certain products below cost to attract customers, it is practicing
a loss-leader price tactic.
a. True
b. False
Reviewing customer comments and feedback and monitoring the click-through
behavior on websites help companies to set appropriate, measurable goals for
relationship programs.
a. True
b. False
An example of interactive marketing would be:
a. a customer creating their own products, as in the case of Subway or BuildaBear.
b. an intermediary wholesaler who links sale of goods from manufacturer to consumer.
c. buyerseller communication through the Internet and virtual reality kiosks.
d. sponsoring local sports teams.
The deregulation movement has ended total monopoly protection for most utilities.
a. True
b. False
Maslow’s hierarchy of needs begins with self-actualization needs and progresses to
physiological needs at the highest level.
a. True
b. False
A consumer goods company is trying to develop a relationship with its customers by
implementing marketing strategies that focus on developing interdependence between
the company and its customers. These marketing strategies indicate that the company is
at the _____ level of relationship marketing.
a. third
b. second
c. first
d. fourth
Clarke’s, a popular and high-end brand of men’s formalwear, has just five main
distributors to cater to the five zones in the country: north, south, east, west, and central.
According to the information given in this case, Clarke’s uses:
a. closed sales territories.
b. contractual collusion.
c. tying agreements.
d. intensive distribution.
Your company has manufactured a new gadget that can help users track weight loss and
create personalized health plans. The product is aimed at middle-class women between
the ages of 21 and 40. The product will sell in the $200–250 price range and will be
made available in sports retailers as well as online. Because the product is new, your
team has been given $250,000 to market the product.
Which of the following factors is missing from the promotional mix in the scenario
described above?
a. nature of the product
b. nature of the market
c. stage in the product life cycle
d. funds available for promotion
e. evaluation of promotional effectiveness
In marketing your baby food, you want to understand the most common evaluative
criteria used by your customers during the relevant stage of the consumer decision
process: evaluation of alternatives. Based on research, these criteria are likely to include
all of the following except:
a. Where and from whom to buy your baby food
b. The ingredients in your baby food
c. The price of your baby food
d. The image of your brand
e. The image of your company
The method of measuring quality by comparing performance against industry leaders is
known as _____.
a. marketing mix
b. specialty products
c. product
d. services
e. convenience products
f. impulse goods
g. installations
h. wholesalers
i. business-to-business (B2B)
j. supplies
k. emergency goods
l. shopping products
m. component parts and materials
n. staples
o. product mix
p. product line
q. line extension
r. total quality management
s. product lifecycle
t. benchmarking
The marketing era is the successive historical outcome of the production era.
a. True
b. False
Marco is a representative for Nationwide Magazines and serves the central southwest
region. He provides inventory for a variety of retail stores such as grocery, drug, and
convenience stores and is responsible for maintaining the stock and appearance of
magazines in the stores. He and his company are known as:
a. rack jobbers
b. truck jobber
c. merchant wholesaler
d. drop shipper
Which of the following is true about a social media marketing plan?
a. It is never documented in writing.
b. It identifies and describes methods for monitoring, measuring, and managing the
SMM effort.
c. It shares no common element with a traditional marketing plan.
d. It precludes an analysis of the competition.
The supply chain management process has no influence on the relationship of the
company with the product’s end users.
a. True
b. False
The number of different products a firm sells is referred to as the _____ of its product
mix.
a. width
b. depth
c. length
d. volume
Social media includes different forms of electronic communication.
a. True
b. False
The goal of the EU, a multinational economic community, is to:
a. liberalize the world financial services, telecommunications, and maritime markets.
b. help American workers, farmers, and small businesses thrive and grow.
c. remove all barriers to free trade among its members, and standardization of
currencies and regulations.
d. extend free trade benefits to most nations around the world.
A strategy in which a retailer shares advertising costs with a manufacturer or wholesaler
is known as _____.
a. noise
b. advertising
c. promotion
d. publicity
e. sales promotion
f. guerrilla marketing
g. posttesting
h. split runs
i. cooperative advertising
j. marketing public relations
k. media scheduling
l. pretesting
m. informative advertising
n. persuasive advertising
o. retail advertising
p. missiles
q. cross-promotion
r. interactive advertising
s. sponsorship
t. institutional marketing
Successful customer relationship management systems reduce costs by empowering
customers to find the information they need to manage their own orders.
a. True
b. False
Companies that adopt category management system start the process by:
a. setting performance standards and measuring actual results against the standard.
b. defining the category based on the target market’s needs.
c. staffing the sales force, including the national sales teams assigned to major retailers.
d. identifying consumer groups and the store clusters with the greatest sales potential.
Experts are of the opinion that CAFTA’s economic impact is likely to be relatively large
compared with NAFTA.
a. True
b. False
Which of the following services provided by a wholesaling intermediary would be an
example of the intermediary’s creating place utility for consumers?
a. selling
b. buying
c. financing
d. transporting
e. risk taking
The Internet is mainly used for communication, information, purchases, social
networking and ___________.
a. online education
b. blogging
c. Streaming movies
d. real estate transactions
e. online gaming
_____ roles are mostly seen in households with two wage earners while making
purchase decisions.
a. Syncratic
b. Husband-dominated
c. Wife-dominated
d. Dictatorial
The first thing to do in selecting a marketing channel is to determine which type of
channel will best meet both the seller’s objectives and the distribution needs of
customers.
a. True
b. False
Zara Inc., a well-known cosmetics manufacturer, introduced its anti-wrinkle cream in
the Asian market after its sales in the European market leveled out due to stiff
competition from rival products. This is an attempt to extend product lifecycle by:
a. increasing the frequency of use.
b. increasing the number of users.
c. finding new uses.
d. changing product quality.
A wholesaler-sponsored voluntary chain allows retailers to save on advertising costs.
a. True
b. False
Large facilities offer economies of scale in facilities and materials handling systems;
per-unit costs for these systems decrease as volume increases.
a. True
b. False