A diversification strategy is free of risk when a firm is entering unfamiliar markets.
a. True
b. False
Which of the following is true of public relations?
a. It has the advantage of being able to reach the masses.
b. It helps an organization communicate with its customers, suppliers, stockholders,
government officials, employees, and the community in which it operates.
c. It is generally a shortrun tool used to stimulate immediate increases in demand.
d. It is a purchase situation involving a personal, paidfor communication between two
people in an attempt to influence each other.
Starbucks partnered with Barnes and Nobles bookstores in 1993 to provide inhouse
coffee shops, benefiting both retailers. What kind of partnership does it represent?
a. Collaboration
b. Strategic alliance
c. Commitment
d. Trust
Which is a characteristic of companies that adopt a supply chain orientation?
a. They have the capability to deliver on the promises they make.
b. They cannot accept shortterm risks on behalf of others.
c. They work independentlyof top management of the companies.
d. They do things that harm the entire supply chain in the long run.
So far as promotion decisions are concerned, many nonprofit organizations are
explicitly or implicitly prohibited from advertising, thus limiting their promotion
options. Are federal agencies included in this category?
a. No, federal agencies are exempt from this rule.
b. Yes, most federal agencies fall into this category.
c. Yes, only federal agencies fall into this category.
d. Yes, all federal agencies fall into this category.
When purchasing for themselves, consumers’ product preferences typically remain
unchanged as they move through the stages of the family life cycle.
a. True
b. False
Consumers making routine buying decisions are more extensively involved in the
decisionmaking process than consumers making complex buying decisions.
a. True
b. False
Which of the following statements describes a customer innovation center?
a. It is an approach to repositioning a company’s products using sales figures.
b. It promotes advertising among statusconscious customers.
c. It is a forum for meeting with customers and directly involving them in the
innovation process.
d. It is used in the business analysis stage of the newproduct development process.
A restaurant has a narrow product assortment and its level of service, price, and gross
margin all range between low and high.
a. True
b. False
Need recognition generally is not triggered by a consumer’s exposure to an external
stimulus.
a. True
b. False
Inelastic demand is a situation in which
a. an increase or a decrease in price does not significantly affect the demand for a
product.
b. prices are adjusted over time to maximize a company’s revenues.
c. demand is created for new products by aggressive brand awareness campaigns.
d. a pricing objective maintains existing prices or meets the competition’s prices.
The pyramid of corporate social responsibility portrays philanthropic performance as
the foundation for the other responsibilities.
a. True
b. False
Which of the following statements is true of conducting internet surveys?
a. They have lower response rates than traditional surveys.
b. They require a considerable amount of time and effort to be conducted.
c. They incur training, telecommunications, and management costs.
d. They can be personalized for greater relevance to each respondent’s situation.
A marketing mix typically involves:
a. distribution strategies.
b. divestiture strategies.
c. restrictive covenants.
d. federal regulations.
It is generally considered wise to have a well extended introductory stage of the product
life cycle.
a. True
b. False
The assertion that “great salespeople should have strong, healthy selfesteem and the
ability to bounce back from rejection” describes which trait that is desirable in
applicants for sales position?
a. Ego strength
b. Risk takers
c. Assertiveness
d. Empathy
The manager of TruColor Printers Inc. has purchased a sophisticated printing press for
$1 million. Which of the following statements is most likely to be true about the
printing press?
a. It will depreciate over its useful life.
b. It will be charged as an expense in the year it is bought.
c. It will be purchased by the customers through higher prices.
d. It will be bought through retailers.
Which statement describes a benefit of advertising?
a. It has a very low cost per contact.
b. It facilitates consumer empowerment.
c. It provides opportunity for immediate feedback from consumers.
d. It creates a longterm, committed relationship between a salesperson and a customer.
A relatively inexpensive item that merits little shopping effort is called a(n)
______________.
a. convenience product
b. shopping product
c. industrial product
d. unsought product
Sales promotion consists of all marketing activities—including personal selling,
advertising, and public relations—that stimulate consumer purchasing and dealer
effectiveness.
a. True
b. False
Which of the following is an advantage of online focus groups?
a. Better participation rates
b. Costeffectiveness
c. Broad geographic scope
d. All of the above
The relationship between benefits and the sacrifice necessary to obtain those benefits is
known as ________________________.
a. teamwork
b. customer value
c. customer satisfaction
d. empowerment
Which of the following is true of nontraditional channels?
a. They increase a brand’s coverage in the market.
b. They are used to sell stolen or counterfeit products..
c. They lead to competition between distribution channels through cannibalization.
d. They may help differentiate a firm’s product from the competition.
Foreign Corrupt Practices Act (FCPA) was enacted because congress was concerned
about
a. U.S. corporations’ use of illegal payments and bribes in international business
dealings.
b. so that website operators obtain verifiable consent from parents before collecting
personal information about children under age thirteen.
c. to set a standard for the suite of educational apps.
d. None of these.
Online focus groups allow access to individuals who otherwise might be difficult to
recruit.
a. True
b. False
Order cycle time is the time between order and customer receipt.
a. True
b. False
The rate of the decline of sales during the product life cycle is governed by how rapidly
consumer tastes change or substitute products are adopted.
a. True
b. False
Universal product codes (UPCs) are also known as _____ because the numerical codes
appear as a series of thick and thin vertical lines.
a. mnemonics
b. bar codes
c. serial codes
d. codicology
In North Korea, a company wishing to buy goods abroad must first obtain a foreign
currency exchange from the control agency.
a. True
b. False
How well a consumer’s expectations are met from a product determines whether the
consumer is satisfied or dissatisfied with the purchase.
a. True
b. False
_____ refers to communication by marketers that informs, persuades, and reminds
potential buyers of a product to influence an opinion or elicit a response.
a. Upselling
b. Direct selling
c. Promotion
d. Encoding
The term product refers to which of the following?
a. Tangible goods
b. Services
c. Ideas
d. All of the above are correct.
When comparing the various kinds of relationship marketing, we can say that ______.
a. the social level is more developed than the structural level
b. the financial level is more developed than the social level
c. the customization level is more developed than the social level
d. the financial level is more developed than the customization level
Starbucks uses different kinds of coffee, dairy and nondairy alternatives, flavor shots,
and temperature levels to create a diverse array of options for customers. It uses a
machine called a Clover, which allows baristas to customize brew times down to the
second, specify how much exposure the water has to the coffee grounds, and dial in a
precise temperature. Starbucks is wellgeared toward ______.
a. customization
b. standardization
c. mass customization
d. mass standardization
According to the General Electric model for strategic alternatives, market conditions
that have low overall attractiveness are the best candidates for investment.
a. True
b. False