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The Italian government imposed duties on products imported from Canada such as
automobiles and consumer electronics to raise their prices in the local market and to
protect the local companies from competition. This type of trade barrier being used by
the Italian government is an example of a(n) _____.
a. embargo
b. protective tariff
c. import quota
d. revenue tariff
Personal interviews are usually the best means to obtain detailed information about
consumers.
a. True
b. False
Which of the following is an example of indirect competition?
a. A Sony home entertainment system competing with a Jacuzzi hot tub
b. An ExxonMobil station opening across the street from a Shell retail outlet
c. Competition among Verizon, AT&T, and TMobile
d. The purchase of a Honda Accord competing with a Toyota Camry
Which of the following statements is true regarding marketing myopia?
a. A firm who focuses on product orientation endangers future growth
b. Firms who apply a customer orientation are in danger of lower levels of profiability
c. Failure to recognize the impact of social media can lead to myopia
d. Marketing myopia only applies to companies with a physical or tangible product
A manufacturer’s list price must incorporate the costs incurred by channel members in
performing required marketing functions and expected profit margins for each member.
a. True
b. False
A selling agent is an ideal marketing channel for weakly financed, production-oriented
firms.
a. True
b. False
Which of the following would be an example of niche marketing?
a. Frito-Lay introducing a commercial for its new flavor “Cream-n-Onion” in India
b. Standard Chartered bank advertising its newly devised investment solution options in
The Economist
c. A firm hiring people to hand out flyers about its new product at a shopping mall
d. A firm advertising a new brand of biscuits on hoardings
Bots are programs that aid online consumers in comparison shopping.
a. True
b. False
Promoting the use of oatmeal as a cholesterol reducer and antacids as a calcium
supplement are most likely to be examples of extending the lifecycle of the product by:
a. improving product quality.
b. changing package sizes.
c. increasing the frequency of use.
d. finding new uses.
The local government in Colorado has made it mandatory for firms to publish
information on labels, regarding the environmental impact of their products. The
government is trying to protect the consumers’ right to be safe.
a. True
b. False
The amount by which the average transportation charge exceeds the actual cost of
shipping to a particular destination under postage stamp pricing is called phantom
freight.
a. True
b. False
Retailers practice scrambled merchandising to boost sales volume.
a. True
b. False
The Lands’ End catalog provides a toll-free number for customers to call and place
orders. The staff is pleasant and knowledgeable and will place orders and answer
questions. This is an example of a(n):
a. marketing communications element.
b. promotional mix component.
c. inbound telemarketing effort.
d. customer-driven technology.
The first step in the AIDA concept involves convincing the would-be buyer of the
product’s ability to satisfy his or her needs.
a. True
b. False
The average total cost is the cost calculated by dividing the sum of the variable and
fixed costs by the number of units produced.
a. True
b. False
In order to ensure that it gets the most out of its social media marketing efforts, a firm
needs to create a social media marketing (SMM) plan. An effective SMM plan should
begin with:
a. A SWOT analysis of the proposed SMM initiative
b. A budget for the SMM initiative
c. A discussion of compelling reasons why the SMM plan should be adopted.
d. The company’s methods for monitoring, measuring and managing the plan efforts
e. An analysis of the firm’s competition
Which of the following components of a business plan describes strategies for
informing potential customers about the goods and services offered by the firm as well
as strategies for developing longterm relationships?
a. The marketing plan
b. The financing plan
c. The production plan
d. The facilities plan
Consumers who are part of the Millennial generation rely on social media and the
influence of peers when making decisions about purchasing products and brands
compared to Baby Boom generation consumers who might prefer to read reviews by
sources such as Consumer Reports. This distinction is important to marketers and part
of the ______ environment.
a. socialcultural
b. economic
c. technological
d. demographic
Your small retail outlet prides itself on selling environment-friendly premium coffee
products. You purchase your beans from roasters who sell only fair trade-certified,
Rainforest Alliance-certified, and organic-certified coffees. In fact, you are part of a
co-op that assists small farmers through the certification process with grants and
education. What vertical marketing process are you employing in distributing your
products to your customers?
a. vertical conflict
b. forward integration
c. horizontal conflict
d. backward integration
e. functional integration
Which of the following is true regarding franchises?
a. franchise owners are typically required to pay a royalty on sales
b. a franchise owner is not affected by poor strategic decisions of the franchise brand
c. a franchise is a type of administered marketing system
d. franchising is declining in popularity
Which of the following is a distinction between business (B2B) and consumer (B2C)
markets?
a. business markets are more complex
b. consumer markets involve more decision makers
c. customer service is more important for B2C purchasers
d. advertising plays a larger role in business markets
Don intends to use promotional pricing as an ongoing part of the marketing strategy for
his automotive supply store. Because you are his friend -- and have years of experience
in retail marketing -- you feel obligated to tell Don that he should rethink this plan.
What point(s) do you make?
a. Overuse of promotional pricing can get customers hooked on lower-than-normal
prices.
b. Promotional pricing is intended to be a temporary part of a firm's marketing strategy,
not an ongoing element.
c. Promotional pricing will require Don to use popular products like motor oil as loss
leaders.
d. Promotional pricing only works when implemented together with psychological
pricing techniques.
e. Promotional pricing is seldom used by retailers.
The basic elements of a marketing strategy consist of ____________.
a. Product and promotion
b. Strategic planning and tactical planning
c. The customer and the exchange
d. Strategic planning and marketing planning
e. The target market and the marketing mix
A(n) _____ is a software program that allows online shoppers to compare the price of a
particular product offered by several online retailers.
a. electronic shopping cart
b. extranet
c. electronic storefront
d. bot
Natural resources, farm produce and lumber constitute _____.
a. raw materials
b. accessory equipments
c. component parts and materials
d. installations
A merchant wholesaler is an independently owned wholesaler that takes title to the
goods.
a. True
b. False
Each element of the marketing mix—product, price, distribution, and promotion—is a
subset of the overall marketing strategy.
a. True
b. False
In addition to planning for change, marketers must set goals to meet the concerns of
customers, employees, shareholders, and members of the general public.
a. True
b. False
Direct-response retailing does not include home shopping that sells merchandise
through telephone orders.
a. True
b. False
Use of straight extension strategy as part of global marketing strategy permits
economies of scale in production and marketing.
a. True
b. False
Which of the following methods used for conducting primary research gathers
information by encouraging the participants to engage in a discussion on a
predetermined topic?
a. Trend analysis
b. Delphi technique
c. Focus group
d. Interpretative research
An international apparel manufacturer changed its pricing strategy as it entered a new
market where recessionary trends are being observed. This implies that the _____
factors of the marketing environment led the firm to change its pricing decisions.
a. legal
b. political
c. environmental
d. economic
The ______________ has the authority to recall products or ban products without a
court hearing, but doesn’t have jurisdiction over food products.
a. Consumer Product Safety Commission
b. Flammable Fabrics Act
c. Food and Drug Administration
d. Consumer Product Safety Act
e. Fair Packaging and Labeling Act
