An important advantage of personal selling is that it gives the customer the opportunity
to try a product before making a purchase.
a. True
b. False
The term “societal marketing” refers to buyer–seller communications in which the
customer controls the amount and type of information received from a marketer through
such channels as the Internet and virtual reality kiosks.
a. True
b. False
While forming partnerships in business-to-business markets, organizations primarily
look for companies that:
a. are focused on product-orientation.
b. have shorter distribution channels than their competitors.
c. can add value to the relationship.
d. differ from them in the core values and goals.
Information technologies give organizations fast new ways to interact and develop
longterm relationships with their customers and suppliers.
a. True
b. False
The Asch phenomenon states that individuals will:
a. follow their personal influences more closely than any other influence.
b. conform to majority rule, even if it contradicts their beliefs.
c. purchase products that the majority deems unfit.
d. avoid problem-solving behavior for all purchases.
The marketers’ standards of conduct and moral values are called _____.
a. environmental scanning
b. environmental management
c. competitive environment
d. timebased competition
e. economic environment
f. demarketing
g. consumerism
h. marketing ethics
i. social responsibility
j. green marketing
k. oligopoly
l. gross domestic product
m. planned obsolescence
n. inflation
o. socially responsible marketing
p. politicallegal environment
q. VoIP
r. discretionary income
s. antitrust
t. strategic alliance
Friums & You, a Canadian firm, together with its subsidiaries, manufactures and
markets snacks, confectionery, and quick meal products worldwide. The firm has been
trying to expand its business into China. As Chinese laws require foreign firms to do
business with local companies, Friums & You will have to be involved in a _____ to
start operations in China.
a. limited liability partnership
b. buyout
c. strategic alliance
d. hostile takeover
John learned in business school that full-cost pricing is a very common cost-oriented
pricing procedure, and he planned to use it in setting price for his firm’s new software
product. However, his boss is not convinced that full-cost pricing is best, and wants
John to list both its pluses and minuses in a memo. Which of the following should be
included in John’s list?
a. Full-cost pricing will enable the firm to recover all the costs it incurred while
developing the software, including the overhead of running its research and
development lab.
b. Full-cost pricing will take into account the likely competitive moves of other
software developers.
c. Full-cost pricing is based on a reliable projection of customer demand in the software
market.
d. Full-cost pricing does not ensure that overhead costs will be allocated appropriately.
e. Full-cost pricing can use only those costs that are directly attributable to a specific
output, like production of 1000 units of the software.
Since many firms begin penetration pricing with the intention of increasing prices in the
future, success depends on generating numerous trial purchases.
a. True
b. False
Freight carriers are classified as common carriers, contract carriers, and private carriers.
Which of the transactions below was completed using a contract carrier?
a. An artisan sells her wares online and ships them via a for-hire carrier.
b. A food manufacturing company ships snacks, soft drinks, and bottled water to
convenience stores.
c. A company ships merchandise from its warehouses to its retail outlets nationwide in
its own fleet of trucks.
d. A motor carrier transports automobiles in intrastate, interstate, and foreign commerce.
e. A major appliance retailer delivers a refrigerator, range, and microwave oven suite to
a customer’s home.
A person who purchases new products as soon as they are available in the market is
called a(n) _____.
a. trade dress
b. brand preference
c. brand insistence
d. generic product
e. family brand
f. brand equity
g. product diversification
h. trademark
i. brand extension
j. consumer innovator
k. brand name
l. private brand
m. brand manager
n. universal product code (UPC)
o. cannibalization
p. product liability
q. captive brand
r. brand mark
s. line extension
t. label
Micromarketing may cause a company to lose sight of other, larger markets.
a. True
b. False
Which of the following is true of culture in the United States today?
a. The basic core values in the American society have changed to collectivism and
spirituality.
b. The American culture still emphasizes the importance of family and home life despite
changes in the family structures over the years.
c. The marketing strategies that are successful in one state can be extended to other
states as well due to lack of diversity among different American states.
d. The U.S. culture is composed of relatively few subcultures compared to other
developed nations.
Which of the following is true of convenience products?
a. Consumers generally don’t have prior need recognition of convenience products
before purchasing them.
b. Consumers generally tend to purchase convenience products immediately and with
minimal effort.
c. Consumers tend to buy convenience products after a long-term evaluation of
competing products in the market.
d. Consumers tend to buy convenience products because of the prestige associated with
their ownership.
In your recent performance review, you were advised to sharpen your skills in
managing the facilitating functions of marketing. You will begin by paying extra
attention to which of the following activities?
a. Building relationships with wholesalers and retailers.
b. Evaluating studies of your customers’ needs and wants.
c. Assessing the effectiveness of different advertising themes.
d. Pursuing access to new sources of funds to finance inventories.
e. Understanding government standards for grading and quality control.
Which of the following can be classified as a creative approach to over-the-counter
selling?
a. Clothing retailer Lord and Taylor expanding the capabilities of the fitting rooms in its
stores
b. Gap stores providing virtual gift cards to customers
c. Lord and Taylor promising its online customers product delivery in five business
days
d. Gap making its web portal highly efficient to save its customers search time
Cumulative quantity discounts tend to bind customers to a single supply source.
a. True
b. False
The marketing programs at the third level of relationship marketing usually aim to
create:
a. social interaction.
b. financial interaction.
c. interdependent partnership.
d. viral advertising.
The Tour de Cure is a bicycle ride, not a race, to raise money for the American Diabetes
Association and is held in 40 states nationwide. This is an example of:
a. event marketing.
b. organization marketing.
c. person marketing.
d. place marketing.
An online ice cream confection company planned to introduce their products to an
international audience, including developing countries, from the beginning. Their
original decision was to use the same products and the same promotion strategy for all
countries. Which aspect of establishing the business will cause the most concern in
developing countries?
a. calorie counts that change radically from flavor to flavor
b. advertising tied to increased sales with warmer outdoor temperatures
c. pricing strategy due to differing availability of raw ingredients
d. foolproof physical distribution using unrated transportation systems
e. differing levels of interest in sweet-tasting desserts in different cultures
In a B2B context, businesses use social media mainly to:
a. share views and make final buying decisions.
b. learn about new goods and services.
c. connect with the general public.
d. build relationships, including partnerships with other companies.
The practice of purchasing goods and services from suppliers worldwide is known as
_____.
a. merchandisers
b. trade industries
c. remanufacturing
d. nearshoring
e. end-use application segmentation
f. global sourcing
g. joint demand
h. inelastic demand
i. outsourcing
j. value analysis
k. gatekeeper
l. commercial market
m. reciprocity
n. vendor analysis
o. category advisor
p. modified rebuy
q. demographic characteristics based segmentation
r. influencers
s. buyer
t. customer-based segmentation
Marketers intentionally offering products with limited durability are engaging in _____.
a. environmental scanning
b. environmental management
c. competitive environment
d. timebased competition
e. economic environment
f. demarketing
g. consumerism
h. marketing ethics
i. social responsibility
j. green marketing
k. oligopoly
l. gross domestic product
m. planned obsolescence
n. inflation
o. socially responsible marketing
p. politicallegal environment
q. VoIP
r. discretionary income
s. antitrust
t. strategic alliance
Supervisory managers tend to focus exclusively on strategic planning.
a. True
b. False
A firm that focuses its efforts on profitably satisfying a single market segment is opting
for _____ strategy.
a. target market
b. market segmentation
c. cohort effect
d. primary metropolitan statistical area
e. differentiated marketing
f. concentrated marketing
g. micromarketing
h. positioning map
i. VALS
j. AIO statement
k. core region
l. consumer product
m. demographic segmentation
n. Pareto’s law
o. psychographic segmentation
p. geographic information systems
q. positioning
r. geographic segmentation
s. business product
t. mass marketing
You handle transportation issues for a chain of department stores selling clothing,
furniture, and home lighting fixtures. The primary mode of transport you rely on is:
a. Railroads
b. Motor carriers
c. Water carriers
d. Air freight
e. Common carriers
A researcher came up with an unusual way to study the market penetration of Magazine
A vs Magazine B in a particular city. At the city’s garbage processing center, she
obtained a week’s sample of discarded magazines and compared the numbers of A to B.
This is a(n) _____ research method, used to collect _____ data.
a. Interpretive, primary
b. Personal, secondary
c. Exploratory, secondary
d. Observation, secondary
e. Observation, primary
A(n) _____ is an electronic barrier between a company’s internal network and the
Internet that limits access into and out of the network.
a. wiki
b. extranet
c. encryption
d. emarketing
e. private exchange
f. bot
g. search marketing
h. electronic signature
i. phishing
j. blog
k. clickthrough rate
l. conversion rate
m. electronic shopping cart
n. firewall
o. eprocurement
p. vishing
q. spam
r. podcast
s. preroll video ad
t. engagement
Which of the following is also known as the Anti-A&P Act?
a. The Clayton Act of 1914
b. The Robinson-Patman Act of 1936
c. The Miller-Tydings Resale Price Maintenance Act of 1937
d. The Consumer Goods Pricing Act of 1975
Several countries on the African continent are disadvantaged by both low per-capita
incomes and substandard communications infrastructures. These countries are likely to
be poor markets for _____ but good markets for ____.
a. cars, bicycles
b. recreational boats, fishing rods
c. cell phones, landline phones
d. restaurant supplies, kitchen tools
e. currency exchange, currency investment