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Refer to the scenario below to answer the following question(s).
Most clients of Second Avenue have learned about the store through word-of-mouth
communication. This small retailer of quality secondhand children's clothing thrives on
the sale of a vast inventory of children's clothing placed on consignment. "Because
small children grow so quickly," Second Avenue's owner commented, "they often
outgrow many of their clothes before they've hardly been worn!"
Second Avenue provides a way for people to sell their children's clothing, earn a few
dollars, and buy the next larger size. "We're extremely picky about the condition of the
clothing we stock," the owner stated, "but we sell most items at a 60-percent discount."
The owner of Second Avenue wants to establish a community clothing drive to collect
clothes for a local children's shelter. The owner is planning to set up collection barrels
outside Second Avenue. In this case, which of the following public relations tools is
being used by the owner?
A) press relations
B) product publicity
C) lobbying
D) development
E) public affairs
Answer:
Which of the following is the last step in the selling process?
A) qualifying
B) handling objections
C) demonstration
D) follow-up
E) approach
Answer:
Product mix ________ refers to the number of versions offered for each product in the
line.
A) length
B) depth
C) height
D) width
E) consistency
Answer:
Sheffield Cargo serves both consumer and business markets, but most of its revenue
comes from its business customers. Of late, the business customers of Sheffield Cargo
have demanded a change in the packaging of heavy cargo along with a more
sophisticated and user-friendly extranet framework. Sheffield Cargo is under pressure to
offer better products and services or risk losing a huge portion of its customers. This is
an example of ________.
A) a new task
B) a modified rebuy situation
C) a straight rebuy situation
D) trade exchange
E) reverse auction
Answer:
________ occurs when two established brand names of different companies are used on
the same product.
A) Market diversification
B) Niche marketing
C) Co-branding
D) Licensing
E) Cannibalization
Answer:
Progressive Insurance uses Flo to represent its product. Which of the following message
execution styles was used by Progressive Insurance?
A) mood or image
B) fantasy
C) personality symbol
D) technical expertise
E) musical
Answer:
Which of the following is a common reason for new product failure?
A) incorrect estimation of the market size
B) low product development costs
C) ineffective social marketing campaigns
D) low selling prices of products
E) patent ownership exclusively held by the company
Answer:
________ companies use both offline and online marketing channels.
A) Start-up
B) Click-only
C) Multichannel marketing
D) Brick-and-mortar
E) Brick-only
Answer:
A ________ VMS integrates successive stages of production and distribution under
single ownership.
A) contractual
B) corporate
C) contingency
D) conventional
E) communal
Answer:
________ includes sales presentations, trade shows, and incentive programs.
A) Direct marketing
B) Sales promotion
C) Personal selling
D) Public relations
E) Advertising
Answer:
A company can become so ________ centered that it loses its even more important
focus on maintaining profitable ________ relationships.
A) customer; competitor
B) competitor; customer
C) market; customer
D) market; competitor
E) competitor; product
Answer:
Refer to the scenario below to answer the following question(s).
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical
nature. In recent years, owner Gary Zahn has served as the local representative of
several musical instrument manufacturers, providing a contact person for three local
schools. He sends a sample of a manufacturer's products to schools that request a
demonstration or presentation. "If we don't have it, we can definitely get it for you,"
Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a
particular era or just browsing among the hundreds of music knick-knacks in the store.
Gary spends most of his time making presentations to beginners at the local schools and
making biweekly visits to the schools to deliver instruments, make minor repairs, or
pick up instruments to ship to the manufacturer for more complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web
site could benefit a variety of customers. He began with a simple Web site that provided
information about the store and the types of gifts and services available. The site
received so much response that Gary added a question-and-answer option. Questions
poured in, ranging from "Where can I get sheet music for 'Hello, Dolly'?" to "Do you
carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at
Elmhurst School to repair it?" The Web site is now able to accept credit card orders, and
gifts can even be wrapped and shipped for no extra charge.
"This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive.
And our novelties sales have doubled!"
In addition to sending samples of sheet music to schools, Gary sends school music
directors messages with links to sample digital clips of the compositions. What kind of
marketing is this?
A) e-mail marketing
B) viral marketing
C) kiosk marketing
D) mobile marketing
E) catalog marketing
Answer:
"Many companies today are localizing their products, advertising, promotion, and sales
efforts to fit the needs of individual regions, cities, and neighborhoods." This is an
example of ________.
A) geographic segmentation
B) product diversification
C) branding
D) psychographic segmentation
E) demographic segmentation
Answer:
Foreign businesses in India appear to receive unusually close scrutiny and special
regulations, aimed at protecting the local businesses. This is an example of a(n)
________.
A) nontariff trade barrier
B) tariff
C) boycott
D) exchange control
E) quota
Answer:
Which term refers to the qualitative value of message exposure through a given
medium?
A) reach
B) turnover rate
C) efficiency
D) media impact
E) frequency
Answer:
________ involves persuading people to buy goods they had no thought of buying.
A) Sustainable marketing
B) High-pressure selling
C) Strategic marketing
D) Redlining
E) Reverse redlining
Answer:
An industry often contains "good" and "bad" competitors. Good competitors ________.
A) break the rules of fair competition
B) ensure minimum competition between firms
C) play by the rules of the industry
D) typically dominate the market
E) share their marketing strategies with other firms
Answer:
Lower costs in the form of cheaper labor or raw materials, foreign government
investment incentives, freight savings, and the opportunity to improve the company
image are the factors that would most likely lead a company to enter a foreign market
using the market entry strategy of ________.
A) direct exporting
B) licensing
C) management contracting
D) indirect exporting
E) direct investment
Answer:
Observation is best suited for ________ research.
A) exploratory
B) constructive
C) experimental
D) descriptive
E) survey
Answer:
A firm should compete with ________ competitors in order to sharpen its abilities.
Succeeding against these competitors often provides greater returns.
A) strong
B) international
C) weak
D) distant
E) smaller
Answer:
Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a
variety of producers at less-than-regular wholesale prices and then charges customers
less than retail, is a(n) ________.
A) specialty store
B) off-price retailer
C) factory outlet
D) wholesale club
E) category killer
Answer:
In the context of the AIO dimensions for measuring consumers' lifestyles, "A" stands
for ________.
A) activities
B) achievements
C) admirations
D) attitudes
E) associations
Answer:
________ were the main form of retail clusters until the 1950s.
A) Strip malls
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Regional shopping malls
Answer:
The marketing concept is a philosophy of ________.
A) sales and profit maximization
B) customer value and mutual gain
C) serving short term interests over long term gains
D) serving the company's interests over the consumers'
E) promotion value and company gain
Answer:
Refer to the scenario below to answer the following question(s).
Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to
industry design changes and consumer demands, for the next financial year, six of those
stampings will require a slight change: two will have an extra hole punched through the
side, two will require an extra plating process, and two will require an additional weld
operation.
In the meantime, purchasing agent Richard Koehl has been asked to reduce the number
of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price
quotations and steel samples from his current suppliers, Richard faced a dilemma. Until
now, he had selected his suppliers based on quality and price, but the major
consideration had been the type of steel required and the specialized production
processes of his respective suppliers. Not all of Alpha's suppliers could produce the
exact grades of steel needed; some suppliers were better at producing certain types of
steel than others.
Richard contacted several employees at Alpha who had worked with the various types
of steel in the past. The quality control manager and line inspector, for example, could
help to determine which suppliers had the capabilities of producing specific types of
steel. The production control manager could provide input regarding which types of
steel worked best in which presses. The warehouse foreman gave inputs regarding how
long various types of steel could be held in inventory before rust spots began to form on
their surfaces. Each person contributed the necessary information to help Richard in
making his decision.
The demand for Alpha Stampings' products is ultimately based on the demand for new
automobiles in the consumer market. This is an example of ________ demand.
A) negative
B) latent
C) primary
D) derived
E) composite
Answer:
Porsche is a German automobile manufacturer that competes against BMW and Audi,
but only in the sports car and SUV segments of the automobile market. Porsche utilizes
a(n) ________ strategy.
A) overall cost leadership
B) focus
C) middle-of-the-roaders
D) market segmentation
E) blue ocean
Answer:
In a bid to attract more customers in a market that has several competitors, Barrymore's
Bakery slashed the prices of all its products by 50 percent. Managers at the firm
reasoned that lower prices would draw in even more customers, making up for the
reduction in price several times over. Which of the following pricing strategies are they
using?
A) market-skimming pricing
B) market-penetration pricing
C) captive-product pricing
D) cash discount pricing
E) by-product pricing
Answer:
Members of management at Growing Green, a company that markets organic and
environmentally friendly gardening and landscaping supplies and equipment, are
evaluating the benefits and disadvantages of indirect exporting, direct exporting, and
licensing. In which stage of the international marketing process is Growing Green?
A) deciding on the global advertising strategy
B) deciding which markets to enter
C) deciding how to enter the market
D) deciding on the global marketing program
E) deciding on the global marketing organization
Answer:
________ can adopt one of two competitive strategies: they can challenge the leader or
they can play along with competitors and not rock the boat.
A) Runner-up firms
B) Market nichers
C) Global investors
D) Localized marketers
E) Market developers
Answer:
When companies set prices, the government and social concerns are ________ factors
affecting pricing decisions.
A) external
B) internal
C) economic
D) cultural
E) organizational
Answer:
________ calls for dividing the market into regions, states, counties, cities, or even
neighborhoods.
A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation
Answer:
As production moves up, the average cost per unit decreases because ________.
A) variable costs decrease
B) of increasing diseconomies of scale
C) fixed costs are spread over more units
D) overhead costs decrease
E) revenue increases
Answer:
In 2005, the ________ established a free trade zone between the United States and
Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and
Nicaragua.
A) CAFTA-DR
B) FTAA
C) CAN
D) NAFTA
E) EU
Answer:
A market-skimming pricing strategy should NOT be used for a new product when
________.
A) the product's quality and image support its higher price
B) enough buyers want the products at that price
C) competitors are unable to enter the market
D) competitors can undercut prices easily
E) producing a smaller number of goods is feasible
Answer:
