Technological success is based upon innovation, which is independent of imagination
and risk taking.
a. True
b. False
Terra Corp. produces a wide range of furniture, such as cabinets, book cases, and
bureaus. It divides its consumer market into several groups of people who have similar
interests in wooden furniture. The strategy of dividing its consumer market most likely:
a. allows Terra Corp. to meet the markets’ needs with a single marketing mix.
b. enables Terra Corp. to define customer needs and wants more precisely.
c. eliminate the need for developing marketing objectives.
d. allows Terra Corp. to use an undifferentiated targeting strategy.
Betty‘s Bakery sells cupcakes to coffee shops and restaurants. The company strives to
increase its market share in terms of the revenue generated. This illustrates the _____
pricing objective.
a. status quo
b. profitoriented
c. bait
d. salesoriented
Barbara follows several blogs and is a frequent user of YouTube. She does not have her
own website, and she almost never posts any comments on the sites she visits. She just
enjoys reading and watching the content on popular sites. In this case, Barbara would
be best characterized as a _____.
a. creator
b. spectator
c. collector
d. joiner
A subset of ecommerce that involves the interaction and user contribution aspects of
social online media to assist online buying and selling of products and services is called
___________.
a. crowdsourcing
b. social commerce
c. sales promotion
d. integrated marketing
Which factor is considered the most critical in determining where customers choose to
shop?
a. Store/website design
b. Display
c. Merchandise selection
d. Service
Which of the following ethical theories states that the most ethical choice in a situation
is one that produces the greatest benefit to the most people?
a. Deontological theory
b. Moral relativism theory
c. Casuist ethical theory
d. Utilitarian ethical theory
To prove predatory pricing, it must be proved that the destructive company explicitly
tried to ruin a competitor and that the predatory price was below the predator’s average
variable cost.
a. True
b. False
Which statement is true of deciders in a buying center?
a. They approve of the selection or brand.
b. They make the final purchase.
c. They influence the buying decision.
d. They regulate the flow of information.
Which legislative action created the Consumer Financial Protection Bureau (CFPB)?
a. The Restoring American Financial Stability Act
b. Credit Card Act
c. Consumer Product Safety Act
d. Patient Protection and Affordable Care Act
Which of the following states the function of a distribution strategy in a marketing mix?
a. Distribution strategy is about transporting raw materials or finished products.
b. Distribution strategy is about educating customers about product benefits.
c. Distribution strategy is about providing afterpurchase services to customers.
d. Distribution strategy is about public relations activities.
Which of the following is true of distribution structure?
a. Consumer products pass through a system that includes several producers and one
wholesaler.
b. The use of direct channels has increased in the past decade with the introduction of
various Internet buying and selling schemes.
c. Channels of distribution for business marketing are typically longer.
d. A manufacturer market is most common for indirect users in direct channel.
Which of the following activities is not true of the marketing concept?
a. Satisfying customer wants and needs legally and responsibly
b. Integrating all the organization’s activities to satisfy customer wants
c. Implementing effective and highquality sales techniques to sell goods and services
d. Focusing on internal capabilities rather than on customer wants and needs
Which of the following statements is true of Gen Xers?
a. They graduated from college during the Great Recession and had difficulty in finding
good jobs.
b. They are currently in two different stages of the life cycle.
c. They have acquired a disproportionate amount of spending power.
d. They have very low spending power because of a lack of a stable source of income.
Tropical Horizons has opened spas in Thailand, Indonesia, and Malaysia and is
aggressively expanding into countries around the Mediterranean. This illustrates which
of the following strategies of Ansoff’s strategic opportunity matrix?
a. Market penetration
b. Market development
c. Product development
d. Diversification
Any clutter from competitors’ messages or other distractions in the environment does
not influence the effectiveness of the masscommunication effort.
a. True
b. False
A period of economic activity characterized by negative growth, which reduces demand
for goods and services is called ________.
a. a recession
b. inflation
c. a depression
d. purchasing power
A _____ occurs when a company’s management decides to add products to an existing
product line to compete more broadly in the industry.
a. product line reeling
b. product line extension
c. product line classification
d. product line contraction
Identify which statement is true regarding African Americans.
a. Most African Americans are 50 years old or older, so they don’t drive current music
trends.
b. Because of their rich heritage, African Americans believe in strong cultural
connections.
c. Most African Americans are not heavy users of technology.
d. Lower household incomes, coupled with overall population growth, are causing the
purchasing power of the African American consumers to decrease significantly.
According to stakeholder theory, social responsibility refers to paying attention to the
interest of all the stakeholders such as management, suppliers, customers, local
community, and so forth.
a. True
b. False
Bethany is hungry and wants to go to a good restaurant to eat and relax. She chooses
Morton’s The Steakhouse for its ambiance and good food. Her experience
provides_____.
a. hedonic value
b. utilitarian value
c. both hedonic and utilitarian value
d. perceived value
Which of the following statements best defines dynamic pricing?
a. It is the practice of marking up prices by 100 percent, or doubling the cost.
b. It is a basic, longterm pricing framework that establishes the initial price for a
product.
c. It is the ability to change prices very quickly.
d. It is the practice of charging a very low price for a product with the intent of driving
competitors out of business.
A large discount store that specializes in a single line of merchandise and becomes the
dominant retailer in its category is called a ______.
a. superstore
b. category killer
c. warehouse club
d. factory outlet
A onebrandname strategy should be adopted when the name cannot be pronounced in
the local language, when the brand name is owned by someone else, or when the brand
name has a negative or vulgar connotation in the local language.
a. True
b. False
GoPro is arguably one of the top noncelebrity brands on Instagram. A lot of the content
they share is from customers using their products. The GoPro page has over 10 million
followers, gets hundreds of thousands of tweets, comments, and shares on every post.
This exemplifies the metric of ____________.
a. promotional mix
b. marketing
c. engagement
d. strategy
The term that describes the phenomenon in which spending for advertising and sales
promotion increases sales or market share up to a certain level but then produces
diminishing returns is _____________.
a. the advertising response function
b. institutional advertising
c. product advertising
d. new brand promotion
Marketers typically pay little or no attention to directing their advertising or personal
selling toward laggards.
a. True
b. False
How can firms that provide services, such as hair salons and financial services, improve
delivery of their services?
a. By implementing a noreturn policy after sale
b. By maximizing wait times for customers
c. By increasing the costs of services provided
d. By choosing the right distribution channel
Manchester Classics manufactures apparel for men and women. It calls on other
retailers to sell its products. Members of its sales team travel to their customers’
locations to finalize sales deals. In this scenario, the team at Manchester Classics is
comprised of _____.
a. businessfocused salespeople
b. consumerfocused salespeople
c. opinion leaders
d. late adopters
The step of choosing a basis or bases for segmenting a market requires creativity,
market knowledge, and ________.
a. managerial insight
b. technical savvy
c. organizational skills
d. managerial directive
Which of the following describes laggards?
a. They have the shortest adoption time and the lowest socioeconomic status.
b. They have the longest adoption time and the highest socioeconomic status.
c. They have the longest adoption time and the lowest socioeconomic status.
d. They have the shortest adoption time and the highest socioeconomic status.
In recent years, LEGO updated the packaging of its LEGO Friends line of toys to be
more girlfriendly. It has also started to include bricks that can be used to make a pop
star’s house and a cupcake caf. These efforts indicate that LEGO is repositioning its
product.
a. True
b. False
Which of the following statements is true of an unsought product?
a. Marketers of unsought products often use selective, statusconscious advertising to
maintain a product’s exclusive image.
b. Consumers buy unsought products regularly, usually without much planning and at
inexpensive prices.
c. Companies dealing with unsought products must go directly to consumers through a
salesperson, direct mail, or direct response advertising to create awareness about their
products.
d. Consumers usually buy an unsought product only after comparing several brands or
stores on style, practicality, price, and lifestyle compatibility.
A socially responsible marketing effort by a forprofit firm and a nonprofit organization
that targets social or other charitable causes is referred to as __________.
a. causerelated marketing.
b. moral relativism.
c. philanthropy
d. green marketing
Thirdparty logistics companies (3PLs) or logistics integrators are consultingbased
organizations that assess another firm’s entire logistical service needs and provide
integrated solutions. These 3PLs often draw on multiple fourthparty logistics companies
(4PLs) to provide the actual service.
a. True
b. False
