When most of a firm’s costs are fixed over a wide range of outputs, the primary
determinant of profitability will be the:
a. control the firm can exercise over costs.
b. amount of variable cost that can be recovered with the sale of each unit.
c. amount of revenue generated by sales.
d. marginal cost incurred in the production of a single unit.
A customerdriven organization begins its marketing strategy with a detailed description
of its target market.
a. True
b. False
A(n) _____ is a branding component that carries an item’s brand name or symbol, the
name and address of the manufacturer or distributor, information about the product, and
recommended uses.
a. trade dress
b. brand preference
c. brand insistence
d. generic product
e. family brand
f. brand equity
g. product diversification
h. trademark
i. brand extension
j. consumer innovator
k. brand name
l. private brand
m. brand manager
n. universal product code (UPC)
o. cannibalization
p. product liability
q. captive brand
r. brand mark
s. line extension
t. label
The sixth digit of the NAICS codes accounts for specific data needs of each of the
member nations of NAFTA.
a. True
b. False
Under which of the following conditions is a product most likely to have an elastic
demand?
a. Consumers can easily find close substitutes for the product.
b. The marginal cost of producing the product is equal to its marginal revenue.
c. A large portion of a person’s budget is spent on the product.
d. The fixed costs associated with producing the product are higher than the variable
costs associated with it.
Because of the ethical and legal issues that come with the benefits of social media,
marketers must be extra careful about what they include in the postings, ads, comments,
and even images they include in their social media communications. You are well aware
of this important requirement, so you always check your social media communications:
a. to ensure they use the latest social media slang language.
b. to ensure they make fair and realistic claims or promises.
c. to ensure the appropriate fonts are used.
d. to ensure they encourage the consumer to take action immediately.
e. to ensure they are presented in multiple languages.
Kelly is a dentist who knows that her patients are more likely to take home pens
inscribed with her name and phone number instead of an ordinary business card. The
inscribed pens distributed by Kelly for her practice represent specialty advertising.
a. True
b. False
Derrick is the facility manager for a local school district to manage the physical plant
needs of its five elementary, junior high and high school buildings. He has a business
account with Menards, Home Depot and Loews to purchase a variety of supplies such
as light bulbs, cleaning supplies, and cleaning equipment. These items would be
classified as:
a. MRO items
b. business services
c. accessory equipment
d. component parts and materials
_____ is a marketing strategy in which a producer on its own establishes sales contact
with its product’s final users.
a. distribution channel
b. forward integration
c. logistics
d. dual distribution
e. direct selling
f. intensive distribution
g. selective distribution
h. exclusive distribution
i. tying agreement
j. backward integration
k. administered marketing system
l. corporate marketing system
m. contractual marketing system
n. private carriers
o. materials handling system
p. franchise
q. common carriers
r. upstream management
s. suboptimization
t. downstream management
Finished business products of one producer that become part of the final products of
another producer are called _____.
a. installations
b. accessory equipments
c. supplies
d. component parts and materials
Tulip World exports flowers around the globe, using standard worldwide prices. But its
marketing director realizes that the success of this pricing strategy could be undermined
by certain market changes. Choose the change(s) he has in mind.
a. Domestic tulip suppliers undercut Tulip World’s prices.
b. New trade restrictions are imposed in some of the countries where the firm does
business.
c. Foreign marketing costs rise significantly.
d. Tulip World’s prices no longer reflect its unit export costs.
e. Tulip World switches to a new distribution system.
A brand is said to have high relevance if a large number of consumers feel the need for
the benefits offered by the brand.
a. True
b. False
Define marketing myopia, and describe how a company can overcome a myopic view.
Give an example of a successful avoidance of marketing myopia.
Dayer’s, a popular ice cream brand, added new flavors to its existing line of ice creams
to attract kids. This is an example of _____.
a. brand extension
b. line extension
c. brand engagement
d. line engagement
A marketing information system (MIS) is a part of a firm’s overall management
information system that deals specifically with marketing data and issues.
a. True
b. False
Kennedy enjoys shopping at Costco and likes to purchase the Kirkland brand of
strawberry preserves. However, on a recent shopping trip, the store did not have the
Kirkland brand but a new organic brand, Clover Patch. Kennedy decided to purchase
the new brand and give it a try. Which term best describes Kennedy’s level of brand
loyalty for the Kirkland brand of strawberry preserves?
a. brand preference
b. brand recognition
c. brand insistence
d. brand persistence
The number of product lines a firm offers is referred to as the _____ of its product mix.
a. depth
b. width
c. volume
d. length
The buying behaviors exhibited by members of the different classes are homogeneous
and exclusive.
a. True
b. False
A schedule of the amounts of a good or service that firms will offer for sale at different
prices during a specified time period is called _____.
a. breakeven analysis
b. tariffs
c. unfair-trade laws
d. incremental-cost pricing
e. profit maximization
f. demand
g. value pricing
h. monopoly
i. elasticity
j. marginal
k. fair-trade laws
l. yield management
m. oligopoly
n. cost-plus pricing
o. full-cost pricing
p. supply
q. marginal analysis
r. target-return objectives
s. market-share objectives
t. pure competition
Both vendors and retailers use the strategy of category management.
a. True
b. False
A pharmaceutical company that owns a patent for a new drug obtains exclusive rights to
produce and market that drug for an entire lifetime.
a. True
b. False
Relationship marketing tries to rebuild damaged relationships and rejuvenate
unprofitable customers.
a. True
b. False
In the relationship era, firms focus on:
a. shortterm relationships with suppliers.
b. longterm relationships with customers and suppliers.
c. shortterm relationships with customers and suppliers.
d. shortterm relationships with customers.
Trade shows provide an effective opportunity to introduce a new product and to
generate sales leads.
a. True
b. False
While mail surveys are a common data collection method in developed countries, they
are an unreliable means of gathering primary data in many foreign countries because of
the:
a. opinionated nature of target samples.
b. reticence of people in presence of others.
c. low literacy rates.
d. lack of basic telecommunications infrastructure.
Truck wholesalers make regular deliveries to retailers and perform collection and
promotion functions.
a. True
b. False
Which of the following devalues money and reduces its purchasing power through
persistent increase in prices?
a. Disinflation
b. Stagflation
c. Inflation
d. Deflation
A(n) _____ is a type of software or technology that allows users to build, integrate, or
facilitate a community, interaction among users, and user generated content.
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
Which of the following can be regarded as external data?
a. Sales force activity reports compiled by the sales manager
b. Accounting data obtained from the financial statements
c. Information obtained from a syndicated research service
d. Product performance reviews made by the engineering department
The grassroots marketing approach relies on marketing strategies that are:
a. traditional.
b. conventional.
c. expensive.
d. flexible.
Many consumers shop for reasons other than just purchasing needed products.
a. True
b. False
If producers set up closed sales territories that substantially decrease competition, then
it is in violation of the Federal Trade Commission Act and provisions of the Sherman
and Clayton Acts.
a. True
b. False
Christopher who is a hair stylist owns Curlz, the best salon in Los Angeles. The clients
swear by Christopher, and brides and bridesmaids flock to him for all weddings in LA.
Christopher’s name has become synonymous with the service at Curlz. Which of the
following characteristics of services best explains this association?
a. Companies cannot easily standardize services.
b. Service standards show wide variations.
c. Services are inseparable from the service providers.
d. Services are perishable and intangible.
Retail outlets are the contact points between the channel members and ultimate
consumers.
a. True
b. False