Which statement is true of product positioning?
a. It assumes that consumers compare products solely on the basis of price.
b. There are two positioning bases: application and price.
c. The quality of competing products does not influence product positioning.
d. It is a process that influences potential customers’ overall perception of a brand and
product line.
Which of the following is a characteristic of snowball sample?
a. The researcher selects the easiest population members from which to obtain
information.
b. The researcher’s selection criteria are based on personal judgment that the elements
(persons) chosen will likely give accurate information.
c. The researcher finds a prescribed number of people in several categories.
d. Additional respondents are selected on the basis of referrals from the initial
respondents.
La Wear, a very expensive brand of clothing and accessories, promotes its products by
appointing famous personalities as its brand ambassadors. Given this information,
which of the following types of advertising appeals is used by La Wear?
a. Health
b. Fear
c. Convenience
d. Admiration
A family that strongly values good health and fitness encourages their family members
to take up sports; their grocery list, too, is full of nutritious choices which aid good
health. The children in that family follow the same lifestyle pattern when they raise
their families. Which term best describes this pattern of behavior?
a. Socialization process
b. Traditional lifecycle
c. Decision maker
d. Influencers
When using _____, the seller pays all or part of the actual shipment charges and does
not pass them on to the buyer.
a. FOB origin pricing
b. freight absorption pricing
c. uniform delivered pricing
d. basingpoint pricing
The marketing channel is the “upstream” portion of the supply chain that is charged
with moving component parts or raw materials to the producer.
a. True
b. False
A firm using a(n) _____ essentially adopts a massmarket philosophy, viewing the
market as one big market with no individual segments.
a. undifferentiated targeting strategy
b. niche targeting strategy
c. individual targeting strategy
d. concentrated targeting strategy
Which of the following represents the final step in setting the right price of a product?
a. Choose a price strategy to help determine a base price.
b. Finetune the base price with pricing tactics.
c. Establish pricing goals.
d. Estimate demand, costs, and profits.
Which of the following activities is carried out during the implementation of a
marketing plan?
a. Defining the business mission
b. Performing marketing audit
c. Setting up strategic business units
d. Creating and managing a task force
Which of the following statements is true of customer integration for companies
oriented toward demandsupply integration?
a. It is a competency that enables firms to offer valueadded offerings to those customers
who represent the greatest value to the firm or supply chain.
b. It requires firms to link seamlessly to outsiders that provide goods and services to
them so that they can provide highquality customer experiences.
c. It is a process in which companies will collaborate on projects so that the customer
gains the maximum amount of total value possible from the supply chain.
d. It requires information hardware and software systems that can exchange information
when needed between customers and suppliers.
The process during which both the salesperson and the prospect offer special
concessions in an attempt to arrive at a sales agreement is known as _____________.
a. negotiation
b. followup
c. a sales proposal
d. a sales presentation
Torque Roz, an automobile company, uses a unique tire design on its vehicles. A rival
company was found copying the exact design for its automobiles. Torque Roz filed a
legal claim against the rival company regarding this issue and won the lawsuit. In this
scenario, Torque Roz’s unique tire design is a registered _____.
a. captive brand
b. trademark
c. private brand
d. service mark
Which of the following refers to the study of human behavior in its natural context, and
involves observation of behavior and physical setting?
a. Historical research
b. Survey research
c. Observation research
d. Ethnographic research
If an organization has an SBU that it believes has the potential to be a star, the best
allocation of future resources would be to _________ that SBU.
a. build
b. harvest
c. divest
d. hold
Which category of social media user maintains a social networking profile and visit
other sites?
a. Joiner
b. Spectator
c. Critic
d. collector
Which of the following statements is a difference between wholesalers and retailers?
a. Wholesalers use purchased goods to incorporate into other products, while retailers
seek to achieve goals other than the standard business goals of profit.
b. Wholesalers account for the greatest volume of purchases of any customer category,
while retailers buy business products and resell them to business customers.
c. Wholesalers sell mostly to retailers and other organizational customers, while
retailers sell mainly to final consumers.
d. Wholesalers are often known as original equipment manufacturers, or OEMs, while
retailers are often known as buying centers.
The passage of the Restoring American Financial Stability Act of 2010 created the
Consumer Financial Protection Bureau to protect consumers against unfair, abusive,
and deceptive financial practices.
a. True
b. False
Which of the following is true of leasing?
a. Businesses normally buy products rather than lease them, even they are very
expensive.
b. Leasing allows firms to reduce capital outflow, acquire a seller’s latest products,
receive better services, and gain tax advantages.
c. Use of leasing is not encouraged in business markets.
d. Manufacturers do not use leasing in their businesses.
The management of PQR Electronics believes that success can be achieved with a
thorough understanding of its competitive arena and by developing products that satisfy
the needs, wants, and expectations of customers. Therefore, PQR Electronics can be
said to have a ______ orientation.
a. production
b. sales
c. market
d. societal
Although the strategy of internal marketing applies to goods manufacturers as well as
service firms, it is even more critical in service firms.
a. True
b. False
Which form of promotion is most suitable to promote complex and technical products
such as automobiles, computers, and investment services?
a. Reminder promotion
b. Persuasive promotion
c. Informative promotion
d. Connective promotion
Which of the following is correct regarding the benefit of globalization?
a. Decreases product and service quality
b. Hampers economic freedom
c. Access to global export markets and advanced technology
d. Crushing competition
Which of the following is true about the feedback process of communication?
a. Feedback takes place before the process of decoding.
b. With the increase in online advertising and social media, marketers are able to get
more feedback via the Internet.
c. Feedback cannot be nonverbal.
d. Indirect feedback does not help mass communicators to decide whether to continue,
modify, or drop a message.
Firms that indulge in price fixing
a. decide how much to charge for a product.
b. undercut the price quoted by a seller to a buyer.
c. charge different prices to different customers.
d. do not sell to two or more different buyers.
Gen Xers have lower average incomes than their Millennial and Baby Boomer
counterparts.
a. True
b. False
A company wellknown for its easytocook breakfast cereals was facing stiff competition
from the many players in the market. The company changed its campaign to focus on
dietary needs rather than just convenience, thus targeting a segment of consumers
looking for healthy diet. This is an example of a ______.
a. new lineextension product
b. discontinuous innovation
c. repositioned product
d. new and improved product
_____ is a form of nonstore retailing that uses machines to sell its goods.
a. Direct retailing
b. Telemarketing
c. Automatic vending
d. Etailing
Which of the following refers to a system in which prices of different currencies move
up and down based on the demand for and the supply of each currency?
a. Floating exchange rates
b. Dumping
c. Countertrade
d. Trade exchange
A cosmetic company manufactures products for skin and hair care for both men and
women in the 20 to 50yearold age group. Which type of market segmentation approach
does the company undertake?
a. Geographic segmentation
b. Psychographic segmentation
c. Benefit segmentation
d. Demographic segmentation
Unlike a firm that launches a new item resembling several others already on the market,
a firm that introduces a totally new product with no close substitutes will have no
pricing freedom.
a. True
b. False
Which advertising appeal centers around issues such as social embarrassment, growing
old, or losing one’s health which, because of the power of the emotion it stirs, requires
advertisers to exercise care in execution?
a. Fear
b. Vanity and egotism
c. Environmental consciousness
d. Convenience
Washers, dryers, refrigerators, and televisions are examples of unsought products.
a. True
b. False
A marketing decision maker who is concerned only with whether a proposed action is
legal and how it will be viewed by others is demonstrating which level of ethical
development?
a. Preconventional morality
b. Postconventional morality
c. Conventional morality
d. Ethnocentric morality
Costs that change with the level of output are called _____ costs.
a. fixed
b. variable
c. independent
d. indirect
Which statement is true of global marketing standardization?
a. Consumers worldwide don’t want the same things.
b. Companies utilizing global marketing standardization have different foreign market
segments with different products.
c. The markets throughout the world are becoming more alike.
d. Companies must differentiate their offerings to satisfy different target markets.