When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that
includes many college students, as an untapped group of potential customers for their
new line of products, they were engaging in ________.
A) occasion segmenting
B) local marketing
C) market diversification
D) market targeting
E) product positioning
The innovation management system approach yields two favorable outcomes: it helps
create an innovation-oriented company culture, and it ________.
A) clearly assigns responsibility for the process to a single department
B) yields a larger number of new product ideas
C) guarantees successful products
D) frees up senior management time
E) requires less budget support
________ are the first link between the seller and the final buyer. They move company
products from points of production to the borders of countries within which they are
sold.
A) Channels between nations
B) Channels within nations
C) Retail channels
D) Large-scale channels
E) Value chain channels
In a(n) ________, leadership is assumed not through common ownership or contractual
ties but through the size and power of one or a few dominant channel members.
A) horizontal marketing system
B) administered VMS
C) corporate VMS
D) contractual VMS
E) conventional VMS
Harvey’s Bookstore is a popular online bookstore that has differentiated itself through
smooth-functioning delivery networks. This is an example of ________ differentiation.
A) product
B) image
C) price
D) channel
E) people
An ad for Athleta active wear shows a woman in a complex yoga pose and states: “If
your body is your temple, build it one piece at a time.” This ad uses the ________
execution style.
A) slice of life
B) lifestyle
C) fantasy
D) scientific evidence
E) personality symbol
When critics argue that insurance, real estate, and used cars are sold, not bought, they
are accusing marketers of ________.
A) deceptive promotions
B) excessive markups
C) high-pressure selling
D) shoddy products
E) excessive materialism
Digital and social media’s role in business-to-business marketing enhances all of the
following EXCEPT ________.
A) targeting individuals that affect buying decisions within the target businesses
B) facilitating anytime and anywhere connections between people at the selling and
buying organizations
C) giving sellers more control of and access to important information
D) meeting in person with customers at trade shows or conferences
E) giving buyers more control of and access to important information
Which term refers to the general idea that will be communicated to consumers through
an advertisement?
A) advertising appeal
B) message strategy
C) consumer-generated message
D) creative concept
E) message execution
The ________ prohibits monopolies and activities (price-fixing, predatory pricing) that
restrain trade or competition in interstate commerce.
A) Sherman Antitrust Act
B) Lanham Trademark Act
C) Fair Packaging and Labeling Act
D) CAN-SPAM Act
E) Magnuson-Moss Warranty Act
Which of the following statements is most likely true of public relations?
A) It requires participating companies to pay for media space or time.
B) It can have the same impact on public awareness as advertising at much lower costs.
C) It is always handled by a third-party agency hired by the firm.
D) It forms a huge portion of the overall marketing budget of most large firms.
E) It plays an insignificant role in brand building with the increasing popularity of
advertising.
A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction.
A) stimulus
B) perception
C) culture
D) motive
E) tradition
Bicycle helmets have low immediate appeal, but they tend to benefit consumers in the
long run. This indicates that a bicycle helmet is an example of a(n) ________ product.
A) salutary
B) desirable
C) pleasing
D) durable
E) aesthetic
Secondary data consist of ________.
A) information collected for the specific purpose at hand
B) data that does not age
C) information that already exists somewhere, having been collected for another
purpose
D) information collected from conducting personal, in-depth interviews
E) data that is unreliable and unsuitable for the purpose of making marketing decisions
Before calling on a prospect, the salesperson should learn as much as possible about the
organization and its buyers. This step is known as ________.
A) preapproach
B) closing
C) approach
D) presentation
E) prospecting
Experience-curve pricing assumes that ________.
A) competitors are weak and not willing to match price cuts
B) competitors are strong and invincible
C) aggressive pricing adversely affects product image
D) volume-based production slows down organizational learning
E) lower-cost technologies are almost always inferior
Which of the following is least likely to be a tool used by small businesses?
A) observation of customers and potential customers
B) online product and service review sites
C) purchasing data from Nielsen or U.S. Yankelovich MONITOR
D) informal surveys using small convenience samples
E) competitor and customer web, mobile, and social media sites
A market nicher can most likely specialize along all of the following lines EXCEPT
________.
A) specific end users
B) unique products
C) customized services
D) quality-price
E) mass marketing
Which of the following is included in the second part of the marketing strategy
statement?
A) advertising tagline
B) promotional mix
C) planned price
D) customer segmentation
E) operational excellence
Which stage in the PLC normally lasts longest and poses strong challenges to marketing
managers?
A) growth
B) decline
C) maturity
D) introduction
E) adoption
Which of the following is true about behavioral segmentation on the basis of the loyalty
variable?
A) Consumers tend to pay more for products that are targeted at their respective age
group or generation.
B) By looking at customers who are shifting away from its brand, a company can learn
about its marketing weaknesses and take actions to correct them.
C) Highly loyal customers of a brand are less likely to engage in word-of-mouth
publicity than those who are not.
D) Completely loyal customers of a brand are typically loyal to two or three brands of a
given product.
E) Only consumers who seek premium or luxury services are subjected to behavioral
segmentation based on the loyalty variable.
A women’s apparel manufacturer in California recently acquired a Houston-based
company that manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation
The advertising slogan, “We bring good things to life,” used by General Electric to
market itself, is an example of ________ marketing.
A) person
B) corporate image
C) internal
D) place
E) niche
Refer to the scenario below to answer the following question(s).
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a
shoe store, a small restaurant, and a grocery store. Over the next two decades, the small
town transformed into an international tourist attraction, attracting thousands of tourists
who were intrigued by the lifestyle of Shipshewana’s largest population—the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on
their town’s popularity and their woodworking skills. Their shop, Indiana Wood, began
with a small display of handmade hickory rocking chairs, Ben Miller’s specialty. But
within a few months, the display at Indiana Wood included picnic tables, flower boxes,
and small handmade novelty items. No other shop offers the same variety.
Mary Miller decorated the shop’s display room with authentic Amish dcor and
eventually hired three Amish friends to sew and embroider napkins and other textiles as
customers had requested such items. In addition, two women from the Amish
community sought permission from the Millers to display home-baked pastries and
jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to
its flea market on the south edge of town. The Millers also hired four more people to
help customers throughout the purchasing process and to provide the required
product-related information to the customers.
“Shipshewana is full of specialty shops,” Mary Miller stated. “People don’t come here to
buy things made in China or Taiwan. They want real, Amish-made goods.”
Retailers can also be classified by the length and breadth of their product assortments.
In terms of product line, what kind of retailer is Indiana Wood?
A) supermarket
B) specialty store
C) category killer
D) department store
E) convenience store
Lark Inc., an American electronics company, is currently reviewing new geographical
markets to sell its highly popular televisions. By 2020, it plans to open new stores
across all the major South Asian cities. Lark is most likely following a ________
strategy.
A) local marketing
B) market development
C) diversification
D) product adaptation
E) product development
Features are a competitive tool for differentiating a company’s product from
competitors’ products. Which question are companies LEAST likely to ask in a survey
of buyers regarding product features?
A) Which features could we add to improve the product?
B) Which specific features of the product do you like most?
C) How much would (a certain new feature) be worth to you?
D) Which features of the product do you like the least?
E) How do you like the product?
Product planners need to consider products and services on three levels. Each level adds
more customer value. The most basic level is ________, which addresses the question,
“What is the buyer really buying?”
A) an actual product
B) an augmented product
C) core customer value
D) co-branding
E) exchange value
The decisions about impact and engagement of an advertisement fall into the category
of ________ decisions.
A) sales objectives
B) budget
C) message
D) media
E) advertising evaluations
________ involves persuading people to buy goods they had no thought of buying.
A) Sustainable marketing
B) High-pressure selling
C) Strategic marketing
D) Redlining
E) Reverse redlining
Which of the following is a common reason for new product failure?
A) incorrect estimation of the market size
B) low product development costs
C) ineffective social marketing campaigns
D) low selling prices of products
E) patent ownership exclusively held by the company
Which of the following is an external factor that affects pricing decisions in a company?
A) the company’s overall marketing strategy
B) the nature of the market
C) the organizational objectives of the company
D) elements of the company’s marketing mix
E) the annual advertising budget of rival firms
