Which of the following products is an example of a low-involvement purchase?
a. Mercedes-Benz automobile
b. buying a share in NetJets
c. buying a membership into a local country club
d. a vacation to Europe
e. Colgate toothpaste
Answer:
Which of the following would be an example of a constraint in Step 1 of the
price-setting process?
a. “We can rely on our reputation for our other products in the line.”
b. “Experts are predicting a surge in global demand.”
c. “We need to make allowances for large quantity orders.”
d. “We should increase the price during the holiday shopping season.”
e. “We’re going to face some stiff competition.”
Answer:
When an English-speaker reads the KFC slogan “Finger-lickin” good!,” he or she
interprets this as an indication that the food tastes very good. When this slogan was
translated into Chinese, the Chinese-speaker interprets the same words as “eat your
fingers off!” The different interpretations of the ad are primarily due to differing
__________.
a. product consumption behaviors
b. fields of experience
c. channels of communication
d. educational systems
e. advertising appeals
Answer:
The family life cycle concept refers to
a. the distinct phases a family progresses through from the birth of children to when the
children leave home, each phase bringing with it identifiable purchasing behaviors.
b. the distinct phases a family progresses through from the birth of children to
retirement, each phase bringing with it identifiable purchasing behaviors.
c. the distinct phases a blended family progresses through from marriage to separation,
divorce, and remarriage, each phase bringing with it identifiable purchasing behaviors.
d. the distinct phases a family progresses through from formation to retirement, each
phase bringing with it identifiable purchasing behaviors.
e. the intergenerational purchasing habits and product preferences that are passed down
from one generation to the next.
Answer:
Although Nutri-System and Jenny Craig diet plans often use celebrity spokespersons
successfully, the companies also run a risk, especially if the celebrity
a. is an actress who hasn”t appeared in any movies or television shows for the past five
years.
b. is a sports figure whose team doesn”t win that season.
c. has a messy divorce or creates a newsworthy ‘scene.”
d. regains all his/her lost weight.
e. wins an award and doesn”t thank the company for the weight-loss contribution.
Answer:
Which of the following statements regarding an organization’s core values is most
accurate?
a. Core values are developed by cross-functional teams for all levels of an organization.
b. Core values rarely motivate a firm’s stakeholders.
c. Core values change as an organization’s offerings change.
d. Core values establish the norms of the organization’s culture.
e. Core values cannot be separated from the financial realities of an organization.
Answer:
A skimming pricing policy is likely to be most effective when: (1) enough customers
are willing to buy immediately at the high initial price; (2) when the high initial price
does not attract competitors; (3) customers interpret high price as signifying high
quality; and (4) __________.
a. consumers tend to be price sensitive
b. lowering the price has only a minor effect on increasing sales volume and reducing
unit costs
c. a lower price will significantly reduce unit costs
d. it will be easier to set measurable sales unit goals
e. consumers perceive the product to be similar to other products on the market
Answer:
Which of the following statements about relationship marketing is most accurate?
a. The number of encounters in a service experience should always be the same.
b. The service encounter represents an opportunity to develop social bonds with
customers.
c. An after-holiday sale is a good incentive to create a loyal customer relationship.
d. The purpose of relationship marketing is to benefit the customer, not the
organization.
e. A major customer benefit of relationship marketing is a reduction in the price that is
paid for services rendered.
Answer:
There are three variations of contractual systems: retailer-sponsored cooperatives,
franchising, and __________.
a. service-oriented voluntary chains
b. channel-dominated voluntary chains
c. wholesaler-sponsored voluntary chains
d. distributorship cooperatives
e. reseller franchising
Answer:
Mott’s used an advertising campaign to change the way consumers thought about its
applesauce from a dinnertime side dish to a replacement for cooking oil in baking. The
advertising message was that using applesauce in baking cuts calories and also makes
the resulting baked good healthier. Mott’s used a __________ strategy.
a. perceptual mapping
b. product positioning
c. product differentiation
d. product repositioning
e. psychographics
Answer:
Beliefs refer to
a. a person’s consistent behaviors or responses to recurring situations.
b. a learned predisposition to respond to an object or class of objects in a consistently
favorable or unfavorable way.
c. the process by which an individual selects, organizes, and interprets information to
create a meaningful picture of the world.
d. a consumer’s subjective perception of how a product or brand performs on different
attributes.
e. the moral and ethical precepts that guide a person’s behavior.
Answer:
3M is a master of the __________ pricing strategy. According to a 3M manager, “We
hit fast, price high, and get the heck out when the me-too products pour in.”
a. penetration
b. cost-plus
c. ROI
d. market-oriented
e. skimming
Answer:
3M’s place strategy made it convenient for __________ to buy Post-it Flag
Highlighters.
a. everyone
b. college students only
c. office workers only
d. college students and office workers
e. teachers
Answer:
Lady Marion Seafood, Inc. sells 5-pound packages of Alaskan salmon. Assume its unit
variable cost per package is $30 and its fixed cost is $250,000. It wants a target profit of
$38,000 on a volume of 16,000 packages. What should the firm charge for a five-pound
package of salmon?
a. $25.00
b. $33.94
c. $40.00
d. $48.00
e. $61.
Answer:
Ten general product and service categories dominate online consumer buying today and
in the foreseeable future. One category includes items such as DVDs, for which
a. audio or video demonstration is important.
b. prepurchase trial is not necessarily critical.
c. price and delivery time are not key factors.
d. digital delivery is the single most important factor.
e. price and speed of delivery are the determinant sales factors.
Answer:
Figure 1.
In Figure 1. above, the market-product grid labeled “D” illustrates which of the
following market-product strategies?
a. full coverage
b. market specialization
c. product specialization
d. selective specialization
e. market-product concentration
Answer:
A graph displaying consumers’ perceptions of product attributes in two dimensions is
referred to as a
a. perception matrix.
b. growth-share matrix.
c. perceptual map.
d. market-product grid.
e. product differentiation chart.
Answer:
Most Apple retail stores have a Genius Bar staffed with highly trained personnel that
can help customers with their purchases of iPads, iPhones, and other Apple products
and services. Which buying requirement is Apple satisfying with its Genius Bar?
a. context
b. information
c. variety
d. pre- and postsale services
e. adaptation
Answer:
Figure 1.
Consider Figure 1. above. “C” refers to which of the following website design
elements?
a. context
b. content
c. commerce
d. customization
e. connection
Answer:
When different types of buyers have different needs, a __________ sales organizational
structure is used.
a. multi-reseller
b. customer
c. geographical
d. market segmentation
e. multi-level marketing
Answer:
Sterile Feral, Inc. is a nonprofit organization that catches wild or stray cats, and then
neuters, vaccinates, and releases them back into the wild. In recent years, nonprofit
organizations such as Sterile Feral have turned to marketing to help
a. receive additional government funding.
b. expand its business to stray dogs.
c. maintain its nonprofit status.
d. achieve organizational goals.
e. compete with other similar organizations.
Answer:
Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gummint
mojito. The introductory price was low so that it quickly created loyal customers for the
flavor. In this example, Wrigley used
a. skimming pricing.
b. penetration pricing.
c. price lining.
d. odd-even pricing.
e. loss-leader pricing.
Answer:
The practice of replacing promotional allowances with lower manufacturer list prices is
referred to as
a. everyday low pricing.
b. everyday fair pricing.
c. trade-in allowances.
d. markdown pricing.
e. everyday value pricing.
Answer:
At which stage of the personal selling process would a salesperson obtain a purchase
commitment from the prospect?
a. approach
b. presentation
c. closing
d. follow-up
e. sale
Answer:
The Price Premium Marketing Dashboard above shows the dollar and unit market
shares for selected energy drinks. What is the price premium for Monster in 2009?
a. 12.1%
b. 0%
c. -5.0%
d. -5.6%
e. -11.%
Answer:
The Consumer Bill of Rights codified the ethics of exchange between buyers and
sellers. It was outlined by __________ in __________.
a. President John Kennedy; 1962.
b. President Ronald Reagan; 1983.
c. President William H. Clinton; 1996.
d. President George W. Bush; 2003.
e. President Barack Obama; 2009.
Answer:
Before displaying the BBB Online logo on their websites, participating companies
must: (1) be members of their local Better Business Bureau; (2) have been in business
for at least one year; (3) have agreed to participate in BBB’s advertising self-regulation
program; (4) agree to abide by the BBB Code of Business Practices; and (5)
a. actively recruit other firms in their industry to become BBB members.
b. guarantee their customers the best quality, price, and service at all times.
c. use the products and services of fellow BBB members whenever possible.
d. pay a yearly registration fee based on a sliding scale of the previous year’s profits.
e. work with the BBB to resolve consumer disputes that arise over goods or services
promoted or advertised on their site.
Answer:
The commercial, legal name under which a company does business is referred to as a
__________.
a. brand name
b. copyright
c. trademark
d. label
e. trade name
Answer:
Kellogg’s changed the name of its Heartwise cereal to Fiberwise MOST likely to
__________.
a. respond to a changing public interest from heart to intestinal health issues
b. convey a stronger product image, since “heart” implied sentimentality and “fiber”
implied strength
c. comply with Food and Drug Administration guidelines on the use of the word “heart”
in food brand names
d. avoid a lawsuit by the makers of Heartwise Organic Cereal because they claimed the
names and benefits were too similar
e. complement its new line of breakfast fiber bars
Answer:
At the De Beers website (www.diamondsareforever.com), users can design their own
rings and show them to others. One out of five website visitors e-mails their ring design
to friends and relatives who then visit the site. De Beers is using __________ to
promote its diamonds.
a. opt-out marketing
b. customerization
c. niche marketing
d. buzz marketing
e. viral marketing
Answer:
Figure 1.
According to Figure 1. above, which of the following countries is the world’s leading
importer?
a. France
b. Germany
c. Japan
d. United States
e. China
Answer:
By understanding its business, an organization can take steps to define its __________,
a statement of the organization’s functions in society that identifies its customers,
markets, products, and technologies.
a. core benefit proposition
b. doctrine
c. philosophy
d. mission
e. code of ethics
Answer: