Which of the following statements is true about a marketing plan?
a. It is a set of orally communicated rules and is seldom written down.
b. It is developed independently of the external business environment.
c. It defines the business mission and objectives.
d. It lacks the elements of advanced strategic planning.
Advocacy advertising is a form of product advertising that is typically used to safeguard
against negative consumer attitudes and to promote the benefits of a specific good or
service.
a. True
b. False
Which law primarily targets children’s products, which are defined as those used by
individuals 12 years old or younger?
a. Consumer Product Safety Commission (CPSC)
b. Child Protection and Toy Safety Act of 1969
c. Child Protection Act of 1990
d. Consumer Credit Protection Act of 1968
In the context of the Boston Consulting Group’s (BCG’s) portfolio matrix, which of the
following is true of SBUs considered to be question marks?
a. They operate in a highgrowth industry with a low market share.
b. They generate more cash than they need to maintain their market share.
c. They have low growth potential and a small market share.
d. They do not require any cash to maintain their market.
Synergy Corp., a large seller of energyefficient light bulbs, uses extensive promotional
strategies to stimulate sales. Marketers at Synergy Corp. have noticed that a competitor
is steadily gaining market share, and they want to counter the competition immediately
by increasing the sales of Synergy Corp.’s bulbs. Given the situation, which of the
following is the quickest step that Synergy’s marketers can take to stimulate the sales of
its products?
a. Changing the pricing strategy
b. Creating complex production techniques
c. Entering into new supplier contracts
d. Adopting a divesting strategy
A firm’s assets are functions—customer service and promotions—that the firm
performs better than its competitors.
a. True
b. False
A reasonable level of profits consistent with the level of risk an organization faces is
called ____________.
a. satisfactory profit
b. return on investment
c. highest level of profit
d. marginal revenue
The diagnostic role of marketing research includes
a. gathering and presenting factual statements.
b. predicting future changes in marketing requirements.
c. explaining data.
d. addressing “what if” questions.
In the absence of other information, people typically assume that prices are higher
because the products contain better materials, because they are made more carefully, or,
in the case of professional services, because the provider has more expertise.
a. True
b. False
By pressurizing a supplier to sell products at very low prices, a buyer may, in effect,
force the supplier to compromise on the quality of the product.
a. True
b. False
Which of the following statements is true of a specialty product?
a. It is widely distributed in a geographic area so that sufficient quantities can be sold.
b. It is marketed using selective, statusconscious advertising to maintain its exclusive
image.
c. It is easily substituted with products that have the same features.
d. It is unknown to a potential buyer or a known product that the buyer does not
actively seek.
A statement of what is to be accomplished through marketing activities is called
__________.
a. the marketing mix
b. a marketing objective
c. market opportunity analysis
d. a competitive advantage
Which of the following allows direct mailers from a manufacturing company to pick
out (based on data analytics of census data, lifestyle patterns, financial information, and
past purchase and credit history) those most likely to buy its products?
a. Automatic vending
b. Direct retailing
c. Microtargeting
d. Telemarketing
Which of the following exerts the most influence on a consumer’s buying decisions?
a. Social class
b. Gender
c. Reference groups
d. Ethnicity
People who buy the same product most or all of the time are known as brand switchers.
a. True
b. False
An objective of flexible manufacturing includes ___________________________.
a. creating a single variety of goods and/or services through heavy investment to
maximize profit from a specific production technique
b. reaching economies of scale with minimized costs associated with a single
production technique customized for a single product
c. sacrificing profitability so that multiple members of the supply chain can improve
overall manufacturing output in terms of quality, delivery speed, and flexibility
d. creating flexible agreements with suppliers and shippers so that unexpected demand
bursts can be accommodated, without disruptions to customer service or satisfaction
Which of the following pricing strategies is subject to government regulation?
a. Penetration pricing
b. Status quo pricing
c. Price skimming
d. Price fixing
Capital goods such as large or expensive machines, mainframe computers, blast
furnaces, generators, airplanes, and buildings, fall under the category of ____________.
a. accessory equipment
b. major equipment
c. processed materials
d. supplies
A code of ethics:
a. should include an operations schedule of daytoday activities.
b. should be limited to a list of dos and don’ts.
c. should be in written form to avoid confusion.
d. Does not help employees to identify what is wrong and what is right.
A particular item for which consumers search extensively and are very reluctant to
accept substitutes is called a(n) __________.
a. convenience product
b. shopping product
c. specialty product
d. unsought product
Entity A supplies planed timber, paint, varnish, springs, upholstery, and cushioning to
Entity B, which produces a ready to use furniture. Entity C is the marketing department
of Entity B. In this context, ______.
a. A is an upstream supply chain member, while C is the downstream chain member
b. C is an upstream supply chain member, while A is the downstream chain member
c. B is an upstream supply chain member, while A is the downstream chain member
d. C is an upstream supply chain member, while B is the downstream chain member
Social relationship marketing is often more effective than financial relationship
marketing.
a. True
b. False
Marie and her sister Janet saw an icecream vendor. Marie bought herself her favorite
chocolate ice cream, and Janet wanted to try a new flavor that the icecream man told
her about. Marie liked her ice cream, but Janet did not like the new flavor. Which
attributes of reinforcement do you observe in this scenario?
a. Positive and negative reinforcements
b. Only positive reinforcements
c. Only negative reinforcements
d. Stimulus generalization
Which of the following statements is true of agile companies?
a. They increase the complexity of the supply chain.
b. They use the “push” strategy instead of the “pull” strategy to market their products.
c. They spend less time than their competitors on activities that create direct customer
benefits.
d. They partner closely with suppliers and service providers to reduce customer wait
times for products.
Recently, Jenny Inc. launched a new laptop in the market. Blake bought the laptop but
was disappointed when several cheaper laptops were successfully launched in the
market soon after. To deal with his disappointment, he convinced himself that those
laptops were inferior in quality. This scenario illustrates _____.
a. selective distortion
b. stimulus discrimination
c. cognitive dissonance
d. confirmation bias
When a husband decides to buy his wife a wedding anniversary gift, he takes extensive
measures to buy an apt and lovely gift for his wife. Which type of involvement does
this consumer behavior demonstrate?
a. Enduring involvement
b. Situational involvement
c. Shopping involvement
d. Emotional involvement
At the store level, one goal of tactical retailing is to:
a. eliminate the need for segmenting a market.
b. increase the sales of a specific item.
c. increase overhead costs.
d. eliminate the need for new advertising campaigns.
The marketers at Gemini Inc. have prepared a marketing plan for the company’s air
conditioners. The managers at Gemini have outlined several activities for their
subordinates based on this marketing plan and set a deadline and allocated a budget for
each activity. Which of the following stages of the marketing plan is illustrated in this
scenario?
a. Evaluation
b. Implementation
c. Control
d. Vertical integration
The Group of Twenty (G20) was founded in 1945, one year after the creation of the
World Bank, to promote trade through financial cooperation and eliminate trade barriers
in the process.
a. True
b. False
Facebook is by far the largest social network for gaming.
a. True
b. False
The best order fulfillment processes reduce order cycle time as much as possible. The
shorter lead times are beneficial in that they allow firms to carry ______.
a. reduced inventory levels and minimize investment in newer, untested projects
b. reduced inventory levels and free up cash that can be used on other projects
c. increased inventory levels and borrow cash for newer, more promising projects
d. increased inventory levels and generate greater profits by meeting sudden demands
Which of the following is a psychographic segmentation variable?
a. Usage rate of a product
b. Geodemographics
c. Gender
d. Ethnicities
Which of the following is the first step in the marketing research process?
a. Plan the research design and gather secondary data.
b. Identify and formulate the problem/opportunity.
c. Analyze the data.
d. Specify the sampling procedures.