The greater the ________ of a purchase, the higher the consumer’s level of involvement
will be.
A) perceived risk
B) cognitive dissonance
C) psychographics
D) heuristics
E) targeting
Which of the following is a bonus paid by a manufacturer to a salesperson for selling its
product?
A) a rebate
B) a merchandising allowance
C) a premium
D) a cross-promotion
E) push money
The direct financial impact of a firm’s expenditure on marketing activities is called the
________.
A) value chain
B) value proposition
C) differential benefit
D) return on marketing investment (ROMI)
E) utility function
Which of the listed choices is NOT a positioning task?
A) identifying a set of possible competitive advantages
B) surveying frequent uses of the product
C) analyzing competitors’ positions
D) finalizing the marketing mix
E) evaluating responses to the marketing mix
Which of the following statements about a vertical marketing system (VMS) is true?
A) A VMS is a channel in which there is cooperation among channel members at two or
more different levels of the channel.
B) Members of a VMS operate totally independently of one another outside of buying
and selling one another’s products.
C) The three types of vertical marketing systems are independent, conventional, and
customized.
D) Channel conflict is a more serious problem in a vertical marketing system than in a
conventional marketing system.
E) Conventional marketing systems are more efficient than vertical marketing systems.
________ consists of the tools an organization uses to create a desired response among
a set of predefined consumers.
A) Distinctive competency
B) Market position
C) Value proposition
D) Differential benefit
E) Marketing mix
Which element of the marketing mix is most closely associated with a company’s
channel of distribution?
A) production
B) place
C) price
D) profit
E) promotion
________ is the promotional tool used to build interest in or encourage purchase of a
good or service during a specified period.
A) A patronage reward
B) A segmented promotion
C) Advertising
D) Public relations
E) Sales promotion
Through ________ pricing, a marketer pays for an advertisement based on the number
of times users select the advertisement and are directed to the product’s webpage.
A) cost per impression
B) cost per customer
C) cost per order
D) cost per click
E) cost per conversion
A donut shop chain opened its first store outside of North America with the opening of
a shop in Australia. The donut company used a ________ strategy.
A) market development
B) product penetration
C) market penetration
D) cash cow
E) product development
Argo is the world’s leading brand of small vehicles that are designed to be driven on all
types of terrain and in all types of weather. The vehicles can carry up to six passengers.
The market for such vehicles is no longer growing due to the recent economic
downturn. In terms of the BCG growth-market share matrix, Argo would be classified
as a ________.
A) problem child
B) dog
C) cash cow
D) star
E) question mark
Which of the following statements about durable goods is true?
A) Durable goods are more likely than perishable goods to involve low-involvement
decisions.
B) The information search is quicker for durable goods than it is for nondurable goods.
C) Consumers purchasing durable goods are likely to use habitual decision making.
D) Product evaluation is more likely to take place for nondurable goods than for
durable goods.
E) Durable goods provide a benefit over a long period of time.
NAFTA is a(n) ________.
A) South American economic community
B) common market for eastern and southern Africa
C) economic community that includes Peru, Brazil, and China
D) trade agreement that includes Canada, Mexico, and the United States
E) eastern European economic community that competes with the EU
Firms interested in using socially responsible packaging that is less harmful to the
environment are developing ________.
A) aesthetic packaging
B) sustainable packaging
C) ingredient packaging
D) venture packaging
E) copycat packaging
Which of the following most accurately describes PRIZM?
A) a method of removing heterogeneous variables from a target market
B) a method of data mining used to implement market development strategies
C) a database that classifies the U.S. population into segments based on geographic
information, socioeconomic data and lifestyle attributes
D) a database that classifies the international population into segments based on
demographic and geographic characteristics
E) a positioning strategy used in the introduction of new consumer products
Using ________, a company raises the price of its product as demand goes up and
lowers it as demand declines.
A) price skimming
B) decoy pricing
C) surge pricing
D) keystoning
E) high/low pricing
When a company charges the same rate to ship a product anywhere in the United States,
it is using which form of pricing?
A) freight absorption
B) F.O.B. factory
C) F.O.B. origin
D) uniform delivered
E) F.O.B. delivered
Prior to the development of the cardiac stent, surgeons used balloons to clear obstructed
heart vessels, but there was no way to ensure the vessels would stay open. The stent is a
tiny metal scaffold that props open the formerly obstructed blood vessel and keeps it
from becoming obstructed again. Surgeons who use the stent had to engage in a great
deal of learning to understand its use and its value in patient care. There was nothing
like the stent on the market when it first appeared. The cardiac stent is an example of a
________.
A) dynamically continuous innovation
B) nonradical innovation
C) competitive innovation
D) continuous innovation
E) discontinuous innovation
Annual and quarterly financial reports are both examples of ________ activities.
A) lobbying
B) corporate identity
C) sponsorship
D) investor relations
E) media relations
The Robinson-Patman Act does NOT include regulations that ________.
A) apply to resellers
B) protect final consumers
C) prohibit selling the same product to different retailers at different prices
D) prohibit offering such “extras” as discounts, rebates, premiums, and coupons to
some but not all customers
E) prohibit price discrimination in interstate commerce
The first step in the creative selling process is ________.
A) preapproach
B) prospect and qualify
C) approach
D) handle objections
E) sales presentation
________ is how visible a new product and its benefits are to others who might adopt it.
A) Compatibility
B) Observability
C) Relative advantage
D) Comparability
E) Tangibility
A company did a comprehensive examination of how pit crews in an auto race work to
quickly get a racecar into the pit area, gas the car, perform other maintenance, and get
the car back on the track. The company wanted to see if it could adapt some of the
teamwork techniques used by pit crews to speed up its order processing. The company
conducted a(n) ________.
A) focus group
B) concept test
C) case study
D) worker intercept
E) experimental study
Personality is ________.
A) an internal state that drives us to satisfy needs
B) the process by which people select, organize, and interpret information from the
outside world
C) a change in behavior caused by information or experience
D) a lasting evaluation of a person, object, or issue
E) the set of unique psychological characteristics that consistently influence the way a
person responds to situations in the environment
The term Big Data refers to the ________.
A) use of data warehouses to store structured and unstructured data
B) exponential growth of structured and unstructured data that are difficult to process
using traditional database techniques
C) increasing number of everyday objects that are connected to the Internet and can
communicate information about their use
D) extraction and analysis of large amounts of data from websites
E) collection and analysis of unstructured data by data scientists
Which of the following refers to a product’s overall ability to satisfy customers’
expectations?
A) value proposition
B) brand equity
C) product precision
D) brand meaning
E) product quality
Active Beverages targets the same people who watch the Gravity Games and enjoy
skateboarding, in-line skating, mountain biking, and other extreme sports. It makes
high-energy drinks for this target market. It does not attempt to make any drinks that are
not targeted to this market. Active Beverages uses a(n) ________.
A) undifferentiated marketing strategy
B) filling-out strategy
C) cannibalization strategy
D) limited-line strategy
E) brand extension strategy
The first step in the market research process is to ________.
A) determine how data will be collected
B) select samples
C) clearly understand the information needed by managers
D) set the mission statement for the research
E) determine a research design
An Internet company helps other online businesses with handling distribution
bottlenecks, including managing tariffs and exchange rates for international shipping.
This company provides a(n) ________.
A) component service
B) processed product
C) MRO product
D) specialized service
E) MRO service
________ are Web applications that can help online shoppers find what they are looking
for at the lowest available price.
A) Shopbots
B) Heuristics
C) Search engine optimizers
D) Data brokers
E) Extranets
Burger King, Holiday Inn, Avis, and H&R Block tax service are all franchises, which
means they are also members of a(n) ________ vertical marketing system (VMS).
A) administered
B) conventional
C) corporate
D) horizontal
E) contractual
Some people want healthy cereal that will help them lose weight or possibly prevent
certain kinds of cancer. Some want presweetened cereal. Some want fruits and nuts in
their cereal. Some people want whole wheat cereal while others want rice cereal. There
are some who like hot cereal and others who like to eat their cereal right out of the box.
The diversity of consumers for cereal is an example of ________.
A) geodemography
B) target marketing
C) cultural diversity
D) psychographics
E) market fragmentation
Which of the following is a measure of the percentage of customers who defect over a
given period of time?
A) cost-per-impression
B) churn rate
C) conversion rate
D) click-through rate
E) A/B test
Service ________ means that a service can only take place at the time the service
provider performs it on either the customer or the customer’s possessions.
A) inseparability
B) personalization
C) variability
D) intangibility
E) creativity
A catalog retailer studies about 3,500 variables over the lifetime of a customer’s
relationship. It has found that customers who are single, between the ages of 22 and 35,
and have no children are its least profitable customer segment. By severely reducing the
number of communications and promotional offers sent to this segment, this catalog
retailer has engaged in ________.
A) customer retention
B) customer acquisition
C) customer abandonment
D) churn rate
E) market basket analysis
