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Institutions constitute another important market. Institutional buyers include a wide
variety of organizations, such as schools, hospitals, libraries, foundations, clinics,
churches, and not-for-profit agencies. A small software company develops computer
programs for different business institutions. Which of the following challenges can this
company anticipate?
a. Institutions do not have buying centers.
b. Different institutions have varying buying practices.
c. Some institutions employ a purchasing manager to make decisions.
d. Social media and marketing make institutional buying more complex.
e. Institutional businesses sometimes join cooperative associations to pool their
purchases.
_____ pricing is the pricing strategy of continuously offering low prices rather than
relying on short-term price-cutting tactics such as cents-off coupons, rebates, and
special sales.
a. Minimum advertised
b. Skimming
c. Everyday low
d. Competitive
The width of a product mix refers to the number of product lines the firm offers.
a. True
b. False
Demand for the hiking sandals marketed by the SoftShoe Company is highly elastic. As
a pricing strategy consultant, you have been hired to help the firm reduce this elasticity.
Choose the recommendation you would be least likely to make.
a. Introduce a unique sandal that is custom-made for hikers with significant foot
problems, like deformed toes or large bunions.
b. Promise to undercut the price of any comparable brand.
c. Market the sandal as a necessity for hikers.
d. Market the sandal as a prestigious luxury for hikers.
e. Increase the sandal's price.
Liz Lange maternity wear and Shaun White’s apparel for boys are sold exclusively at
Target. These brands are examples of _____ brands.
a. private
b. national
c. captive
d. exclusive
You have gotten quite a few complaints recently from unhappy clients, among them the
following: One customer feels that the salesperson was not transparent about
contractual issues; another client feels like he was taken advantage of because English
is his second language; and a third client feels like he was pressured into a purchase
without having sufficient time to try out the product. You want to emphasize to your
sales team the importance of upholding the ethical business practices that are
characteristic of your company. What can you do to encourage honesty and ethical
behavior?
a. establish reasonable customer expectations
b. arrange for an ethics and diversity training workshop
c. screen new applicants for the way in which they deal with ethical issues
d. encourage salespeople to report ethics violations to you
e. set the proper example of ethical business practices
The main objective of internal marketing programs is to:
a. share resources with business partners.
b. encourage employees to view each other as competitors.
c. create satisfied employees.
d. facilitate a vertical integration.
A salesperson of a beer company determines that a retail store has only 10 cases of beer
left in stock when it normally carries an inventory of 60. The salesperson informs the
store manager of the inventory situation. Which of the following sales tasks is being
performed by this salesperson?
a. Order processing
b. Creative selling
c. Missionary selling
d. Planning
Brandi is an account executive with Wirtz Beverage, a wine and spirits distributor with
an extensive catalog of brands. She typically meets with restaurants, bars and hotels to
market her products and assists customers in developing their beverage menu to
generate sales revenue and meet customer's needs. Recently, she had the opportunity to
offer customers a great deal - if they ordered 5 cases of wine (assorted brands), they
could receive the 6th case at 50% off retail. Wirtz Beverage offered this promotion in
order to reduce warehouse inventory and shift inventory from their warehouses to the
customer's business location. This is an example of a(n):
a. trade allowance
b. specialty advertising
c. sweepstake
d. coupon
A company can use its advertising cost, site traffic, and conversion rate data to find out
the cost to win each customer.
a. True
b. False
Conducting mail survey research in some parts of Asia can be difficult since a large part
of the population is not able to read or write.
a. True
b. False
ANS: True
Which is the largest single source of statistical information on the sizes and
characteristics of business markets?
a. The North American Industry Classification System
b. Business publications
c. Auditing firms such as PricewaterhouseCoopers
d. Federal government
A(n) _____ is an agent wholesaling intermediary whose primary function is to bring
together buyers and sellers.
a. stock-keeping unit (SKU)
b. markup
c. markdown
d. retail convergence
e. scrambled merchandising
f. atmospherics
g. broker
h. general merchandise retailer
i. category killer
j. rack jobber
k. supercenter
l. auction house
m. specialty store
n. retailers
o. mass merchandiser
p. truck jobber
q. direct marketing
r. drop shipper
s. planned shopping center
t. wheel of retailing
Contractual agreements are less flexible compared to exporting strategies.
a. True
b. False
The channel captain is the key channel member to create cooperative relationships
among members of the channel and avoid channel conflict.
a. True
b. False
A(n) _____ is a trade restriction that limits the number of goods that can enter a country
for resale.
a. exporting
b. WTO
c. infrastructure
d. exchange rate
e. tariff
f. import quota
g. dumping
h. ISO certification
i. foreign licensing
j. multinational corporation
k. global marketing strategy
l. multidomestic marketing strategy
m. countertrade
n. related party trade
o. exchange control
p. customs union
q. CAFTA-DR
r. importer
s. embargo
t. franchise
Prescott purchased a 5-series BMW sedan and chose the vehicle because he loves the
sporty ride and great handling. He usually takes the Interstate to work and lately has
become disillusioned with the car and is bored. Which of the following might you
recommend to Prescott to enhance his "want satisfaction" related to the vehicle
purchase.
a. Change his driving route and get off the Interstate
b. Trade-in the BMW 5-series sedan and purchase a sports car
c. Drive faster than the speed limit to heighten the thrill of driving
d. Read articles or reviews about the BMW 5-series vehicle
Marketers aim to design an appropriate marketing mix to draw the intended target
market. During a meeting with company executives, Roy suggests that one way to
engage the target market and ensure that its members continue to be loyal customers is
by allowing them to return their gadgets in exchange for workable or new parts when
customers file complaints that their products no longer work.
Required:
In thinking about how to best market new products, which of the following components
of the product variable is described above?
a. price
b. labels
c. warranty
d. packaging
e. reputation
Which of the following actions is shaped by the effective application of learning theory
within the marketing strategy context?
a. Repeat purchase behavior
b. Impulse buying behavior
c. Cognitive dissonance
d. Domino effect
You are the marketing manager for a multi-state auto dealership in the Midwest. It is
that time of year when your fleet of autos goes through major model year changes. You
are putting the final touches on your pricing strategy to facilitate getting your inventory
of autos low enough to make room for the new models.
What is the practical problem involved in using your current sales and commission data
to make pricing decisions?What pricing strategy solution would best address that
problem?
a. Problem: You are committed to the idea of maximizing profits for last year's models.
Solution: Increase the price of last year's models, emphasizing their future
unavailability.
b. Problem: You are committed to the idea of maximizing profits for next year's models.
Solution: Keep the prices of last year's model the same, so that the new model's prices
look more desirable.
c. Problem: Your current sales and commission data are hard to quantify to formulate a
pricing strategy. Solution: When a potential customer appears interested, formulate an
individualized price for that person.
d. Problem: Your commissions add to the cost of the cars, decreasing their
attractiveness as bargains. Solution: Eliminate your commissions to reduce inventory.
e. Problem: You have a clearer knowledge of the supply side of the pricing equation
than you do of the demand side. Solution: Periodic discounting to keep pace with
demand.
In drafting your firm's written policy for the ethical use of social media, you want to be
simple and clear. You decide to write a memo with just three points that summarize the
most important ethical guidelines. These include all of the following except:
a. Be honest.
b. Be accountable.
c. Respect privacy.
d. Be efficient.
Which of the following holds true regarding relationship marketing?
a. It applies only to individual consumers and employees.
b. It affects distributors as well as other types of corporate partnerships.
c. It does not allow marketers and customers to customize their communication.
d. It is a buyer–seller communication in which the marketer controls the amount and
type of information received from a customer.
Which of the following measures is taken by Internet companies to indicate their
promise to disclose how they collect personal data and what they do with the customer
information?
a. Installing software tools such as spyware when users log onto their websites
b. Issuing third party cookies to anonymously track user activity
c. Using behavioral targeting practices to improve customer privacy
d. Displaying the TRUSTe logo on their websites
While stocking the shelves with a new soup, the store manager notes a difference in
price between the 16-ounce can and the 32-ounce can. Which type of pricing strategy is
the soup manufacturer using?
a. unit pricing
b. odd pricing
c. price flexibility
d. promotional pricing
e. product-line pricing
When a manufacturer of vinegar, ordinarily used as a food ingredient, promotes its use
as a metal cleaner, the manufacturer is attempting to extend the product’s lifecycle by
changing its package.
a. True
b. False
In the context of Internet advertising, cost per response is a measurement technique that
relates the cost of an ad to every thousand people who view it.
a. True
b. False
The practice of selling a product in a foreign market at a price lower than it commands
in the producer’s domestic market is called _____.
a. global sourcing
b. dumping
c. sole sourcing
d. value engineering
Your company recently released an ad campaign to promote its new tablet. Shortly
thereafter, your company publishes a series of blogs and articles about the product and
sets up hotlines so people can call in to find out more information about the product and
its release date. At which stage of the adoption process are consumers operating?
a. trial
b. interest
c. evaluation
d. awareness
e. adoption
You sell a leading brand of speedboat. Many visitors to your showroom are enthusiastic
young adults who would love to own your product but cannot afford it. When dealing
with them, you must pay particular attention to which step in the sales process?
a. Prospecting
b. Qualifying
c. Approach
d. Presentation
e. Demonstration
The term _____ refers to the features of a group or target audience such as age, gender,
income, geographic location, and so on, within the larger population that the firm wants
to reach.
a. influencers
b. social networking sites
c. social media monitoring
d. app
e. online forum
f. demographics
g. social media tool
h. return on investment
i. microblog
j. social media marketing
k. social media
l. transparency
m. social media marketing plan
n. bookmarking site
o. social media strategist
p. social media analytics
q. social media platform
r. content marketing
s. social news site
t. QR codes
Penetration pricing works best for goods or services:
a. that offer a unique advantage over competitors’ brands.
b. that are characterized by highly elastic demand.
c. that face little or no competition in the market place.
d. that involve high production and operational costs.
