An IMC strategy begins with the organization’s goods and services and then works its
way toward consumer wants.
a. True
b. False
A firm maximizes its profits when:
a. the marginal revenue curve runs much below the marginal cost curve.
b. marginal costs are more than marginal revenues.
c. the marginal revenue curve runs parallel to the marginal cost curve.
d. marginal costs equal marginal revenues.
You work for the Department of Education (DOE) in your county, which is responsible
for ten elementary schools, fifteen middle schools, and twelve high schools. At the
beginning of each school year, the purchasing department at the DOE must buy new
textbooks and technological supplies, including tablets and computer software for
student personalized study plans.
Which of the following challenges might one infer from the scenario described above?
a. Because the DOE has a diverse population, it should only work with businesses that
value diversity.
b. Vendors have a difficult time following the contractual obligations and guidelines
that governmental firms provide.
c. Governmental businesses like the Department of Education have a hard time
managing all of the purchases they must make annually.
d. Since the product end users typically work outside of the DOE, vendors need to
understand the unique challenges associated with working with governmental
businesses.
e. Because governmental entities hoard much of their funding until the fourth quarter,
the business firms from which they buy don’t make money until the fiscal year is
coming to a close.
A _____ is a trade industry vendor who develops a comprehensive procurement plan for
a retail buyer.
a. category captain
b. merchandiser
c. boundary spanner
d. gatekeeper
LifeCare, a small chain of hospitals, is looking to buy new medical equipment for its
hospitals. The company decides to look for various options available in the market
rather than buying from their usual supplier, as they want new, sophisticated features in
the products. This buying situation in which the purchaser is willing to reevaluate its
available options is an example of _____.
a. straight rebuy
b. business process reengineering
c. modified rebuy
d. cross-docking
Social media marketing creates a buzz that carries the marketing message from one user
to the next until it becomes viral.
a. True
b. False
Walmart is evaluating its performance records of the previous years that are stored in its
database. In addition to this, the company is also evaluating its previous year invoices.
This evaluation process carried out by firms is called _____.
a. sales analysis
b. financial iteration
c. market capitalization
d. interpretative research
When an organization employs an integrated approach to marketing, it risks sending
conflicting information that confuses consumers.
a. True
b. False
Which of the following is a pricing method that attempts to use only those costs that are
directly attributable to a specific output in setting prices?
a. Cost-plus
b. Full-cost
c. Incremental-cost
d. Breakeven
A firm that has an existing relationship with a customer is allowed to call that customer
even if the customer has signed up for the national Do Not Call Registry.
a. True
b. False
The communication function of the Internet can be used by marketers to advance their
organizational objectives.
a. True
b. False
Products consumers purchase after comparing competing offerings are called _____.
a. marketing mix
b. specialty products
c. product
d. services
e. convenience products
f. impulse goods
g. installations
h. wholesalers
i. business-to-business (B2B)
j. supplies
k. emergency goods
l. shopping products
m. component parts and materials
n. staples
o. product mix
p. product line
q. line extension
r. total quality management
s. product lifecycle
t. benchmarking
Luxury brands such as Louis Vuitton and Gucci are experiencing a decline in sales as
luxury buyers prefer to purchase nonbranded merchandise as they are concerned with
flaunting their wealth. Instead, they are purchasing luxury brands that do not feature the
brands logo on the product. This trend is related to the fact that high income consumers
have increased their wealth in the last several years while middleincome earners’ wealth
has declined. The decline in sales for Louis Vuitton and Gucci is related to the
________ environmental influence.
a. socialcultural
b. technological
c. politicallegal
d. competitive
In a recent special promotion, any customer who brought in a toaster oven, working or
not, was given a $50 credit toward the purchase of a new microwave oven. This is an
example of a:
a. functional discount.
b. promotional allowance.
c. cash discount.
d. trade-in.
_____ are the taxes levied on imported goods.
a. Excise duties
b. Import quotas
c. Subsidies
d. Tariffs
International water carriers operate with oceangoing, deep-water ships. How will this
mode of freight transportation be affected by expansion of the Panama Canal?
a. Shippers will incur lower costs compared with the rates for other transportation
modes.
b. Larger-sized ships will be able to pass through the all-water route from Asia to the
Atlantic Coast of the United States.
c. Ships that operate on the Great Lakes transporting iron ore from Minnesota will be
able to use this route.
d. Large ships that carry “reefers” will come under closer scrutiny by foreign officials
unfamiliar with this term.
e. Competition will be created in port cities along the Atlantic Coast since the amount
of freight coming through the canal will be limited.
What is the ultimate objective of relationship marketing?
a. Find new customers
b. Create regular purchasers
c. Turn customers into advocates
d. Turn customers into loyal supporters
_____ refers to exaggerated claims of a product’s superiority or the use of subjective or
vague statements that may not be literally true.
a. Infiltrating
b. Puffery
c. Boosterism
d. Crowdsourcing
Despite its many advantages, technology can seldom address social concerns.
a. True
b. False
One way to distinguish goods from services is that services are inseparable from their
service providers.
a. True
b. False
Geographic segmentation is also called socioeconomic segmentation.
a. True
b. False
A vertical marketing system (VMS) in which a single owner operates the entire
marketing channel is called a(n) _____ marketing system.
a. corporate
b. administered
c. contractual
d. community
The revenues and intangible benefits accrued to the firm, minus the investment to
attract and keep a customer is known as the:
a. gradient of return on investment.
b. intangible benefit stream.
c. investmentbenefit differential.
d. lifetime value of the customer.
Resellers are marketing intermediaries who mostly buy finished goods and resell them
for a profit. Their business structure means that they must consider several factors when
deciding which products to buy. Which of the following factors is a reseller least likely
to consider?
a. the level of demand for the product
b. storage space required for the product
c. the sales tax that must be charged on the product
d. how the product fits within the product mix of the reseller’s other products
e. the availability of technical assistance and training programs related to the product
A(n) _____ is a salesperson’s initial contact with the prospective customer.
a. span of control
b. field selling
c. inside selling
d. order processing
e. virtual sales team
f. team selling
g. approach
h. creative selling
i. presentation
j. sales promotion
k. premium
l. coupon
m. network marketing
n. cold calling
o. expectancy theory
p. over-the-counter selling
q. missionary selling
r. relationship selling
s. push money
t. consultative selling
Which of the following stages of the organizational buying process involves comparing
vendors’ proposals?
a. Searching for potential sources
b. Acquiring and analyzing proposals
c. Recognizing and determining the characteristics of a need
d. Evaluating proposals and selecting suppliers
As a consultant, you help firms challenged by marketing myopia. One of your clients is
a bakery that specializes in low fat cakes sweetened with organic fruit juice. To most
effectively broaden their perspective, which of the following business ideas do you
advise them to adopt?
a. We make a healthy lifestyle taste better.
b. Every ingredient is 100% natural.
c. We give you the best prices in the industry.
d. Our cakes are kidtested.
e. We deliver 24 hours a day.
_____ is a strategy of developing and distributing goods and services more quickly than
other firms.
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
According to Maslow’s hierarchy of needs, the desire to accomplish, achieve, and
command respect is a safety need.
a. True
b. False
_____ is the systematic study of the components of a purchase to determine the most
cost-effective approach.
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
Relationships in consumer markets are often more complex than those in
business-to-business markets.
a. True
b. False
Managerial actions that enable all members of an organization to understand, accept,
and fulfill their respective roles in implementing marketing strategy are collectively
referred to as _____.
a. social referencing
b. social loafing
c. internal marketing
d. strategic positioning
The marketing mix decisions which are closely regulated and subject to public scrutiny
usually relate to a company’s _____ strategy.
a. shortterm
b. resource
c. distribution
d. pricing
Brandie is a financial services representative and is licensed to sell life, health and
investment products. She recently met with a couple in their 50’s who have been taking
care of their 80-year-old parents who now need some additional attention and care.
Brandie begins asking the couple about their financial planning and how well they’ve
saved for retirement as well as the possibility that one or both of them might need
nursing assistance or long-term care in a senior facility. What type of product would
best describe a long-term care policy?
a. unsought product
b. specialty product
c. convenience product
d. shopping product
