A major assumption of the economic theory is that, firms will focus on:
a. minimizing the inventory turnover ratio.
b. maximizing gains and minimizing losses.
c. providing a minimum return on investment.
d. using selective distribution strategies rather than intensive distribution strategies.
Which of the following statements is true regarding the interaction between a company
and its customers?
a. Marketers must adhere to traditional performance measures to formulate
customer-based missions and goals.
b. Customers have greater loyalty to a company after a conflict has been resolved than
if they had never complained at all.
c. As happy customers typically talk about their buying experiences more than unhappy
customers do, the cost of dissatisfaction incurred by a company tends to be low.
d. Any method that makes it easier for customers to complain ends up demonstrating
the ineptitude of a firm.
Relationship marketing focuses on developing long-term, value-added customer
relationships.
a. True
b. False
SunDay Holidays paid a fee to Google to display a link of their website when a user
enters a keyword related to holidays or vacations. The link gets displayed on the right
side of the search results page. This link is an example of:
a. a sponsored link.
b. an organic search.
c. a home page.
d. a natural search page.
A major problem facing company decision makers when setting transfer prices is:
a. how to determine the product-service attributes of the transfer.
b. when to complete the transfer.
c. how to assign the controllable costs to the profit centers.
d. what price to actually charge the receiving profit center.
_____ is a personal selling function of describing a product’s major features and
relating them to a customer’s problems and needs.
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
Marketers reward their top customers with cash, rebates, merchandise and premiums in
order to keep them. Which of the following best describes this strategy?
a. Grassroots marketing
b. Affinity marketing
c. Database marketing
d. Customer churn
e. Frequency marketing
Which of the following products would generally be considered as a staple?
a. Lawn mower
b. Laptop
c. Dishwashing liquid
d. Luxury perfume
Marketers can gain valuable insights by examining the dissatisfaction of the customers
that leads to abandoning certain products for those offered by competitors.
a. True
b. False
Which of the following actions can the CPSC take to ensure product safety?
a. Regulating packaging standards for milk products
b. Approving safety standards for automobiles
c. Inspecting production facilities of food manufacturers
d. Ordering product recalls or redesign of faulty products
Mateo recently graduated from high school and it’s always been assumed that he would
go to college after graduation. His family believe education is important to success in
life and know that Mateo will be able to achieve success with a combination of hard
work, persistence, and knowledge. Mateo has been influenced by
a. culture
b. advertising
c. government
d. friends
Aston decides to buy all electronic goods from a particular retailer because of his
satisfactory past experiences with the retailer. Aston is exhibiting the affective
component of attitude.
a. True
b. False
The American population is becoming increasingly homogenous as the ethnic and racial
minority groups are adopting the U.S. culture through acculturation.
a. True
b. False
Santiago is the manager of a Jimmy John’s franchise and is responsible for placing
orders for all products and services the restaurant utilizes. He has a great relationship
with Cintas to provide cleaning equipment to sanitize the bathrooms and kitchen/prep
areas. Since Santiago is pleased with the items he purchases from Cintas, he simply
continues to order and is fairly loyal to his Cintas sales representative. What type of
buying situation does Santiago utilize when purchasing cleaning supplies from Cintas?
a. straight rebuy
b. modified rebuy
c. new-task
d. routinized response behavior
A pricing technique that is used to determine the number of products that must be sold
at a specified price to generate enough revenue to cover total cost is known as _____.
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
The planning process is an intermittent process held after substantial intervals.
a. True
b. False
_____ is a method used to regulate international trade among importing organizations
by controlling access to foreign currencies.
a. exporting
b. WTO
c. infrastructure
d. exchange rate
e. tariff
f. import quota
g. dumping
h. ISO certification
i. foreign licensing
j. multinational corporation
k. global marketing strategy
l. multidomestic marketing strategy
m. countertrade
n. related party trade
o. exchange control
p. customs union
q. CAFTA-DR
r. importer
s. embargo
t. franchise
Autonomic role in decision making differs from syncratic role as autonomic role:
a. occurs when the husband makes most of the purchase decisions.
b. occurs when the partners independently make equal number of purchase decisions.
c. occurs when the wife is allowed to make certain purchase decisions independently.
d. occurs when both the partners jointly make purchase decisions.
The demand for computer microprocessor chips depends on the demand for personal
computers. This is an example of a(n):
a. joint demand.
b. derived demand.
c. volatile demand.
d. inelastic demand.
Which of the following products is most likely to achieve the status of brand insistence?
a. Cars
b. Soaps
c. Milk
d. Toothpastes
The management at Bubblez, a beverage manufacturer, is deciding on whether to buy a
purification plant and a bottling unit. Using the business products classification system,
which of the following is most likely to be true of the management’s decision?
a. The price of the product will be the sole deciding factor in the management’s
decision.
b. The quality of the product will be a very important deciding factor in the
management’s decision.
c. The decision will involve very little planning or research.
d. The decision will be quickly because the purchase frequency of such products is
high.
A major drawback associated with customer relationship management systems is that:
a. they are not effective in reducing the marketing and distribution costs for the
products.
b. the strategy needs to be thought out in advance, and everyone in the firm must be
committed to it.
c. they cannot provide a complete picture of the customers in order to understand their
needs.
d. they complicate simple business processes while trying to reorganize the focus on
customer satisfaction.
A product that is purchased for personal use by an ultimate consumer is called a(n)
_____.
a. target market
b. market segmentation
c. cohort effect
d. primary metropolitan statistical area
e. differentiated marketing
f. concentrated marketing
g. micromarketing
h. positioning map
i. VALS
j. AIO statement
k. core region
l. consumer product
m. demographic segmentation
n. Pareto’s law
o. psychographic segmentation
p. geographic information systems
q. positioning
r. geographic segmentation
s. business product
t. mass marketing
A child care organization’s CEO is looking to use her experience to expand operations
into India. Her interest was sparked by Indian parents saying, “We have nothing like
this back home.” Which action would be a prudent way to enter that global market?
a. Talk to more Indian parents about how they see the business opportunity shaping up.
b. Share enthusiasm with investors to get an idea of funding possibilities.
c. Set up a website serving the online preschool education market for Indian children.
d. Invest as a partner in a child care facility in India to pilot Western concepts.
e. Create a brand new preschool curriculum that could be exported to other countries.
A product that is purchased for use in the production of other goods and services for
resale is called a(n) _____.
a. target market
b. market segmentation
c. cohort effect
d. primary metropolitan statistical area
e. differentiated marketing
f. concentrated marketing
g. micromarketing
h. positioning map
i. VALS
j. AIO statement
k. core region
l. consumer product
m. demographic segmentation
n. Pareto’s law
o. psychographic segmentation
p. geographic information systems
q. positioning
r. geographic segmentation
s. business product
t. mass marketing
The numerical bar code system used to record product and price information is called
the _____.
a. uniform serial number
b. unitized product locator
c. unique label identifier
d. universal product code
The basic consumer rights expounded by President Kennedy include “the right to be
safe,” referring to the idea that the goods and services people buy should not be
injurious in normal use.
a. True
b. False
A market researcher for a cable company is seeking to determine the number of
households in a selected neighborhood that consist of four or more people. The most
cost efficient way to collect this information would be to:
a. look through the census information available on the Internet.
b. use the services of a full service research supplier.
c. conduct personal interviews with neighborhood leaders.
d. search through the information provided by the local Chamber of Commerce.
Preparation of quarterly and semiannual plans by personnel such as the general sales
manager or advertising director would be classified as _____ planning.
a. consumer
b. tactical
c. procedural
d. operational
African Americans possess buying power that nearly equals Hispanics in the United
States.
a. True
b. False
A(n) _____ is a scientific investigation in which a researcher manipulates a test group
and compares the results with those of an other group that did not receive the
experimental manipulations.
a. big data
b. exploratory research
c. secondary data
d. primary data
e. sampling
f. hypothesis
g. simple random sample
h. interpretative research
i. focus group
j. marketing decision support system
k. key performance indicator
l. predictive analytics
m. metrics
n. marketing research
o. quota sample
p. test marketing
q. cluster sample
r. data mining
s. convenience sample
t. controlled experiment
Think Green, a not-for-profit organization, promotes its “go vegan” lifestyle by
publishing advertisements in the print media as well as electronic media. This is an
example of _____ advertising.
a. product
b. institutional
c. retail
d. cooperative
Vietnam has restricted the amount of cement, fertilizer, and fuel that can enter its
borders from outside countries to protect its domestic industries and also to protect
workers from being laid-off. This form of trade restriction is an example of a(n) _____.
a. embargo
b. protective tariff
c. subsidy
d. import quota
You are embarrassed to admit it, but you sent out the wrong information to customers
who requested the price of a new product. What steps should you take?
a. Acknowledge your error in pricing information.
b. Ignore your error unless a customer challenges the pricing information.
c. Communicate with the customers who received the wrong price.
d. Send corrected information to customers who received the wrong price.
e. Promise the customers you will never make such a mistake again.