Oriental Insurance promotes identity theft insurance with an advertisement that warns
viewers about stolen credit cards and fake Social Security numbers. Which appeal is
being used in this commercial to motivate the viewers to act?
a. Fact
b. Humor
c. Cooperation
d. Fear
Which of the following is a limitation of breakeven analysis?
a. consumer demand for products or services is not considered
b. the analysis fails to separate fixed costs from variable costs
c. the calculations assume that per-unit variable costs will change as different amounts
are produced
d. it is difficult to understand and apply
_____ is a form of global marketing that involves continuous efforts in marketing a
firm’s merchandise to customers in other countries.
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
St. Ives and Dove beauty products, marketed by Unilever, are examples of _____
brands.
a. family
b. individual
c. generic
d. captive
Fred Wilson, a journalist working for a popular news channel, has a vast knowledge of
electronic gadgets. His reviews of these products are highly regarded and trusted by
others. Wilson also runs a weekly show on the channel called “The Technocrat,” where
he analyzes the latest hightech gadgets. Much like his reviews, Wilson’s show enjoys a
wide viewership, and is believed to have a considerable impact on the buying decisions
of the audience. Fred Wilson can be regarded as a(n) _____.
a. influencer
b. laggard
c. innovator
d. relationship manager
Advertising via mobile apps helps marketers gain access to users’ personal data.
a. True
b. False
In an SMM plan, _____ refers to a paragraph or two that explains the who, what, when,
where, how, and why of the plan, and gives compelling reasons why the plan should be
adopted.
a. the overview
b. the executive summary
c. the analysis of the competition
d. the body of the plan
Companies focus on building loyal relationships with existing customers as retaining
customers costs must less than acquiring new ones.
a. True
b. False
Firms who compete internationally face complex decisions regarding pricing decisions.
Which method of pricing might be most appropriate for companies who have a
reputation as a price leader?
a. profitability-based pricing
b. meeting competitor pricing
c. prestige pricing
d. price stability
The ability to download Microsoft and IBM software products directly from the
Internet is a part of each firm’s pricing strategy.
a. True
b. False
An independent wholesaling intermediary who brings together buyers and sellers but
represents only one of the parties and receives a fee when the transaction is completed
is a ______________.
a. manufacturers’ representative
b. commission merchant
c. selling agent
d. rack jobber
e. broker
The BCG (Boston Consulting Group) matrix places strategic business units into which
of the following fourquadrants:
a. Strengths, Weaknesses, Opportunities and Threats
b. Oligopoly, Monopoly, Monopolistic Competition and Perfect Competition
c. Micro, Small, Medium, and Large
d. North, South, East and West
e. Stars, Cash Cows, Question Marks and Dogs
Customary prices are:
a. prices offered at the wholesale level as an incentive to increase product sales.
b. retail prices consumers expect as a result of tradition and social habit.
c. prices of products adjusted on the basis of the geographic locations of retail outlets.
d. prices designed to constrain the amount of products sold to a level desired by the
government.
Strategic business units are key business units within small companies that offer only a
few items to its customers.
a. True
b. False
Unsought products are marketed to consumers who may not yet recognize any need for
them.
a. True
b. False
Motives are inner states that direct a person toward the goal of satisfying a need.
a. True
b. False
Merle Norman, a cosmetics manufacturer, sells its products exclusively through its own
retail stores. This is an example of forward integration of distribution channels.
a. True
b. False
_____ involves connecting directly with existing and potential customers through
nonmainstream channels.
a. Viral marketing
b. Interactive marketing
c. Grassroots marketing
d. Buzz marketing
Piggyback service is the most widely used form of intermodal coordination.
a. True
b. False
Marketing planning establishes the basis for a firm’s overall strategic plan.
a. True
b. False
A leading detergent brand receives complaints from its customers that the chemicals
used are too strong and dangerous, and they do not smell good. To counter this, the
company runs a series of ads showing its experts approaching select customers with an
improved detergent that addresses the concerns of the customers. The company is
engaging in:
a. controlled experimentation.
b. database marketing.
c. internal marketing.
d. customer win-back.
Which of the following is true of private carriers?
a. They do not offer services for hire.
b. The government regulates their rates and services.
c. They offer their services to the general public.
d. The ICC has banned them from operating as common carriers.
Which of the following can be categorized as a tariff?
a. A tax exemption provided to domestic firms that import goods from foreign
countries.
b. A tax levied on domestic exporters to maintain product quality.
c. A tax levied on foreign producers to prevent dumping of goods.
d. A tax exemption on agricultural produce to help domestic farmers.
Odd pricing originated as a way to force clerks to make change, thus serving as a
cash-control device.
a. True
b. False
In the United States it is mandatory for firms to inform the customers if the food is
grown using genetically modified organisms.
a. True
b. False
The use of unconventional, innovative, and low-cost marketing techniques designed to
get consumers’ attention in unusual ways is called _____.
a. guerrilla marketing
b. cause marketing
c. mass marketing
d. cloud marketing
Kathy is a summer intern who is eager to take on new challenges in the emarketing
department. Unfortunately, she lacks experience. When told to analyze competitors’
marketing websites, she confuses them with corporate websites. Kathy should have
focused on competitive websites that are primarily intended to:
a. increase company visibility
b. promote company offerings
c. increase purchases by visitors
d. provide company information
Mobile marketing refers to:
a. running promotional campaigns on transport media like trains and airplanes.
b. marketing messages transmitted via wireless technology.
c. promoting associated products or services alongside mobile technologies.
d. the use of online social media as a communications channel for marketing messages.
The two most common cost-oriented pricing procedures are the full-cost method and
the incremental- cost method.
a. True
b. False
Sales promotion techniques were originally intended:
a. to promote the company’s goodwill.
b. as short-term incentives aimed at producing immediate buying responses.
c. as international promotions designed to replace advertising.
d. to build long-lasting customer relationships.
Service firms market primarily through long distribution channels.
a. True
b. False