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Interpretive research focuses on understanding the meaning of a product in a
consumer's everyday life.
a. True
b. False
An offering within a product line, such as a specific size of liquid detergent, is known
as a(n) _____.
a. product array element
b. price look-up factor
c. stock-keeping unit
d. unique article number
The consumer buying decision process involves _______ steps. The first step is
____________, and the last step is _____________.
a. five; evaluation of alternatives; postpurchase evaluation
b. five; information search; purchase
c. six; problem recognition; purchase
d. six; problem recognition; postpurchase evaluation
e. six; evaluation of alternatives; purchase
The _____ is the blending of the four strategy elements to fit the needs and preferences
of a specific target market.
a. planning
b. marketing planning
c. strategic planning
d. tactical planning
e. cash cows
f. first mover strategy
g. SWOT analysis
h. strategic window
i. marketing mix
j. product strategy
k. strategic business units
l. Porter’s Five Forces
m. marketing strategy
n. dogs
o. stars
p. annual growth rate
_____ are independent wholesaling intermediaries that take title to the goods they
handle.
a. Commission merchants
b. Merchant wholesalers
c. Selling agents
d. Broker wholesalers
_____ is a review that helps planners compare internal organizational strengths and
weaknesses with external opportunities and threats.
a. planning
b. marketing planning
c. strategic planning
d. tactical planning
e. cash cows
f. first mover strategy
g. SWOT analysis
h. strategic window
i. marketing mix
j. product strategy
k. strategic business units
l. Porter’s Five Forces
m. marketing strategy
n. dogs
o. stars
p. annual growth rate
AAA Insurance Company specializes in property and casualty insurance for individuals
such as automobile and home insurance. The company has their own branch offices
across the United States with representatives who only market AAA insurance policies.
In addition, consumers can get quotes and purchase via the AAA web portal. AAA
Insurance also works with independent insurance agents as a way to maximize their
coverage in the marketplace. AAA insurance is utilizing ______.
a. dual distribution
b. reverse channels
c. captive channel system
d. direct channel
The relationship marketing continuum has three levels. With respect to the different
levels, we know that:
a. In the third level, a social feature is introduced.
b. In the second level, the buyer and seller develop a dependency.
c. In the first level, the primary focus is on social interactions.
d. In the second level, the primary focus is on price.
e. In the first level, it is acknowledged that it takes more than a low price to create a
long-term relationship.
Placing a product at a certain point or location within a market in the minds of
prospective buyers is known as market mapping.
a. True
b. False
Tide laundry detergent commands an extremely high market share. Purchasers of the
product are extremely less sensitive to price changes. Based on this assessment, it can
be said that Tide has high brand equity.
a. True
b. False
American Express, a large firm with many financial products, recently introduced two
new credit cards designed for very specific markets: The Knot, for engaged couples,
and The Nest, for newlyweds. This is an example of _____ marketing.
a. undifferentiated
b. concentrated
c. mass
d. societal
As part of a client project, the team at your market research firm is interviewing
shoppers at a local mall. The client wants the interviewers to talk to equal numbers of
men and women. Which sampling technique(s) will your team use?
a. Nonprobability
b. Probability
c. Quota
d. Stratified
e. Cluster
The idea of first movers being completely replaced by second movers and the resulting
disappearance of first movers from the marketplace is a myth.
a. True
b. False
Market segmentation is a tool for marketers to use, but its effectiveness depends on four
basic requirements. Three of the requirements for effective market segmentation are as
follows: (1) the segment must have measurable purchasing power and size; (2)
marketers must be able to promote and serve the market; (3) the identified segment
must be large enough to bring in a profit. Select the fourth requirement for effective
market segmentation from the choices below.
a. The marketer must abide by ethical standards.
b. The identified segment must include an equal number of men and women.
c. The marketer must be proficient in the use of modern technology.
d. The identified segment must reflect the company's mission statement.
e. The identified segments must match the company's marketing capabilities.
The complete sequence of suppliers and activities that contribute to the creation and
delivery of goods and services is known as the supply chain.
a. True
b. False
An offset agreement combines a small firm with a major international company where
the small firm essentially serves as a subcontractor on a large foreign project.
a. True
b. False
When purchasing a new home, Tim and Brenda were represented by their realtor and
met at their attorney's office to authorize the paperwork transferring the home from the
sellers to them. The attorney provided _____ utility as part of the purchase of the home.
a. possession
b. place
c. time
d. legal
A promotional allowance is an incentive offered by manufacturers to retailers to:
a. reward a retailer for not advertising a product below a certain price.
b. provide one-time reductions in the list price of products for purchasers of large
quantities.
c. refund the shipping costs paid by the retailer for home-delivery of products.
d. return a certain amount spent by the retailers on advertising and providing sales
support.
Sherwin-Williams sells the paint it manufactures through its company-owned retail
paint stores. The company operates its entire marketing channel. The marketing system
used by Sherwin-Williams is a(n) _____ marketing system.
a. corporate
b. community
c. administered
d. contractual
Caterpillar and First Solar, Inc. launched a ______ where First Solar will design and
manufacture a preengineered turnkey package for use in remote microgrid applications,
such as small communities and mine sites. The package will feature Catbranded solar
panels manufactured by First Solar and will include a balance of system components.
The products will be sold exclusively through Caterpillar's extensive worldwide dealer
network.
a. strategic alliance
b. global partnership
c. competitive agreement
d. licensing agreement
Bundle pricing is more prevalent in the telecommunications industry compared to other
industries.
a. True
b. False
Which of the following is NOT part of the definition of marketing?
a. seek to solely satisfy the needs of the organization by earning a profit
b. identifying customers
c. creating value for customers, clients, partners, and society at large
d. emphasizes the importance of creating and maintaining longterm relationships with
customers and suppliers
Sales of a product category continue to grow during the early part of the maturity stage
but—eventually reach a plateau as the backlog of potential customers dwindles.
a. True
b. False
The _____ is at the heart of integrated marketing communications.
a. product
b. brand
c. organization
d. customer
General merchandise retailers distinguish themselves from specialty and limited-line
retailers by the large number of product lines they carry.
a. True
b. False
Firms often purchase legal services from external consultants. However, as this does not
directly contribute to the firm’s production activities, legal services cannot be
considered a business product.
a. True
b. False
_____ are intermediaries that operate between producers and resellers.
a. utility
b. buzz marketing
c. exchange process
d. seller’s market
e. buyer’s market
f. marketing myopia
g. social responsibility
h. relationship marketing
i. person marketing
j. place marketing
k. event marketing
l. organization marketing
m. interactive marketing
n. lifetime value of a customer
o. social marketing
p. onetoone marketing
q. strategic alliances
r. notforprofit organizations
s. ethics
t. mobile marketing
u. wholesalers
v. transactionbased marketing
Marketing channels increase the number of marketplace contacts necessary to make a
sale.
a. True
b. False
When you choose a career in personal selling, you are promoting your company and the
products or services it offers. How do you communicate the advantages of your goods
and services over those of the competition?
a. Be vibrant and personable; focus on making a profit; direct major resources at
advertising; be professional.
b. Focus on efficiency; know the competition and the industry; be professional; follow
through with customers.
c. Know the industry and the competition; focus on advertising; be vibrant and
professional; exceed customer expectations.
d. Focus on the customer; follow through; know the industry and the competition;
exceed customer expectations.
e. Follow through with customers; be professional; know the competition; direct major
resources to advertising.
Every company, whether forprofit or notforprofit, must plan. Otherwise, the company
will find itself reacting to future events rather than proactively positioning itself to take
advantage of future events.
Which of the following statements is false in regards to strategic planning?
a. It includes the process of determining the organization’s primary objectives.
b. It is done after the company completes its tactical planning activities.
c. It involves choosing actions that will facilitate the achievement of its primary
objectives.
d. It provides longer term guidance for the marketers and other decision makers in the
firm.
e. It establishes the company objectives that are used to develop the tactical plan.
The tagline used by Walmart, “Save money. Live better” is an example of a positioning
strategy that is based on _____.
a. quality
b. attributes
c. product users
d. competitors
Long-term customers are usually more valuable assets than new ones because
________________.
a. their lifetime value is less
b. customer service is not as important to them
c. they provide valuable feedback
d. they complain less
e. they understand the company’s products better
