The BCG has given specific names and descriptions to the four resulting quadrants in
its growth-share matrix based on the amount of cash they generate for or require from
the organization. Stars are located in which quadrant of the BCG growth-share matrix?
A. upper left quadrant
B. upper right quadrant
C. center of the four quadrants
D. lower right quadrant
E. lower left quadrant
Answer:
Which one of the following statements regarding bundle pricing is most accurate?
A. Bundle pricing is intended to benefit the consumer, not the seller.
B. Bundle pricing is really “bundle packaging” since the price charged is for two or
more of the same products that are shrink-wrapped together.
C. Bundle pricing is often associated with a skimming strategy.
D. Bundle pricing often provides a lower total cost to buyers and lower marketing costs
to sellers.
E. Bundle pricing is based on the idea that consumers value the individual items more
than they value the group contained in the package.
Answer:
One advantage of using the Internet as an advertising medium is
A. there is no need to segment markets.
B. it has video and audio capabilities similar to television.
C. there are no real costs except computers used for initial encoding.
D. online ads almost always result in a “click,” an action that leads to the purchasing of
a product.
E. messages are automatically translated into multiple languages.
Answer:
The two-way flow of communication between a buyer and seller, often in a face-to-face
encounter, designed to influence a person’s or group’s purchase decision is referred to as
A. sales management.
B. personal selling.
C. sales promotion.
D. direct selling.
E. marketing management.
Answer:
A(n) __________ reimburses a retailer for extra in-store support or special featuring of
a brand.
A. organizational allowance
B. case allowance
C. finance allowance
D. manufacturer’s inducement
E. merchandise allowance
Answer:
The BCG has given specific names and descriptions to the four resulting quadrants in
its growth-share matrix based on the amount of cash they generate for or require from
the organization. Question marks are SBUs that are classified as having
A. high market growth rates and high relative market shares.
B. low market growth rates but high relative market shares.
C. low market growth rates and low relative market shares.
D. high market growth rates but low relative market shares.
E. medium market growth rates and medium relative market shares.
Answer:
The four stages of the retail life cycle are
A. introduction, growth, maturity, and decline.
B. awareness, inquiry, alternative evaluation, and purchase.
C. early growth, accelerated development, maturity, and decline.
D. innovation, standardization, adaptation, and obsolescence.
E. innovation, adaptation, imitation, and obsolescence.
Answer:
Coke-Pepsi Photo
Consider the Coke-Pepsi photo above. An employee of Coca-Cola attempted to share its
marketing plan with an employee of Pepsi for a modest price. What should the Pepsi
employee do?
A. Buy the marketing plan if assured there would be no legal or ethical repercussions.
B. Ignore the offer to buy the marketing plan and hope the ethical dilemma will go
away.
C. Immediately contact Coca-Cola to advise them of the plot to sell the marketing plan.
D. Immediately report the offer to the Better Business Bureau.
E. Advise the Coca-Cola employee that it would be ethical to accept the plan if offered
for free.
Answer:
Four pricing practices are closely scrutinized because of potential unethical or illegal
actions. They include: (1) predatory pricing; (2) price discrimination; (3) deceptive
pricing; and (4) __________.
A. price discounting
B. flexible pricing
C. price fixing
D. delayed payment penalties
E. price elasticity
Answer:
The less-expensive matinee movie pricing offered on shows prior to 4:00 p.m. is an
example of
A. price lining.
B. price differentiation.
C. off-peak pricing.
D. bait-and-switch pricing.
E. idle production pricing.
Answer:
A student would like to buy cross-over SUV from a local dealer, but she thinks the
payments will be too high. Marketing does not occur in this situation because
A. two or more parties have unsatisfied needs.
B. there is no desire on the part of either party to satisfy its needs.
C. one of the involved parties does not have the ability to satisfy its needs.
D. there is no way for each party to communicate with one another.
E. there has been no assessment of consumer wants and needs.
Answer:
A trade-in allowance refers to
A. a noncash exchange of one product for another of equal or greater value.
B. a cash-back payment when a more expensive item is replaced with a less expensive
item.
C. the return of money based on proof of purchase.
D. a cash payment to a retailer for extra in-store support or special featuring of the
brand.
E. a price reduction given when a used product is part of the payment on a new product.
Answer:
In recent years, online sales accounted for __________ of all retail sales.
A. 5 percent
B. 10 percent
C. 20 percent
D. 30 percent
E. 40 percent
Answer:
Intermediaries that represent a single producer and are responsible for the entire
marketing function of that producer are referred to as __________.
A. brokers
B. line brokers
C. selling agents
D. distribution brokers
E. manufacturer’s agents
Answer:
If a purchase is a new buy for a manufacturer, the seller should expect to
A. have to do some favors for the decision makers.
B. anticipate a great deal of conflict.
C. accommodate unlimited specification change before the buy is completed.
D. work with the buyer’s technical personnel.
E. avoid making concessions or compromises.
Answer:
Medication sensors have been developed that can dispense medicines by circulating
within the arteries of the body and sensing when the medication is needed. This is an
example of how __________ forces help improve or replace existing products and
companies.
A. ecological
B. regulatory
C. legal
D. competitive
E. technological
Answer:
There are four commonly used forms of institutional advertising: advocacy,
__________, competitive, and reminder.
A. differentiation
B. pioneering
C. persuasive
D. philanthropic
E. informational
Answer:
Alka-Seltzer was made originally as a hangover remedy that cured the headache and
settled the stomach. Today, you can buy Original Alka-Seltzer, Extra Strength
Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and
Alka-Seltzer Heartburn Relief. Each Alka-Seltzer product has a unique formulation to
relieve a specific malady that makes them more specialized than competing products.
The maker of Alka-Seltzer is using
A. product variation.
B. product differentiation.
C. market sectioning.
D. product segmentation.
E. product base development.
Answer:
IBM’s business strategy to help its clients be more efficient, productive, and responsive
to the data generated from the revolution in the global marketplace concerning the
instrumentation and integration of the world’s processes and infrastructures is referred
to as
A. “The IBM Way.”
B. “Smarter Planet.”
C. “Reinvent Business.”
D. “The 2015 Road Map.”
E. “Big Blue.”
Answer:
Inside order takers are also referred to as __________.
A. managers
B. directors
C. missionaries
D. salesclerks
E. go-getters
Answer:
Which of the following barriers does downsizing try to combat when consumers will
adopt a new product or repurchase an existing one?
A. risk barriers
B. usage barriers
C. feature bloat barriers
D. psychological barriers
E. value barriers
Answer:
All of the following are differences between social and traditional media EXCEPT:
A. the number of and skills required to produce and train personnel to produce the
media.
B. the permanence of the media.
C. the credibility of the media.
D. the ability to reach a mass or specialized market segment.
E. the privacy and anonymity of the media.
Answer:
Figure 18-2
Consider Figure 18-2 above. F refers to which of the following website design
elements?
A. communication
B. commerce
C. customization
D. connection
E. context
Answer:
Which phase of the strategic marketing process does a firm obtain resources, design the
marketing organization, develop schedules, and execute the marketing program?
A. planning phase
B. implementation phase
C. evaluation phase
D. strategic phase
E. tactics phase
Answer:
A company may choose a skimming strategy during the introduction stage of its product
to help recover costs of development and to __________.
A. capitalize on the price insensitivity of early buyers
B. discourage competition from other manufacturers
C. ease the product into its maturity stage
D. gain the largest unit sales possible
E. gain more distribution outlets
Answer:
In terms of scheduling advertising, buyer turnover refers to
A. the amount of time between repeat purchases for a given product.
B. how often new buyers enter the market to buy a product.
C. the amount of time for a buyer to enter and exit a product’s life cycle.
D. how often a consumer will try competitive brands before becoming a brand loyal
customer of the firm’s product.
E. the ratio of repeat purchases to the number of buyers for an offering.
Answer:
Oil prices have an impact on transportation costs for many types of products. Should oil
prices change, the price consumers pay for products often is adjusted accordingly.
Changing oil prices would be an example of a(n) __________ force.
A. social
B. economic
C. technological
D. competitive
E. regulatory
Answer:
In the breakdown for the NAICS code based on Figure 5-1 above, D represents the
A. two-digit industry sector code.
B. three-digit industry subsector code.
C. four-digit industry group code.
D. five-digit industry code.
E. six-digit U.S. national industry code.
Answer:
All of the following statements about standard markup pricing are true EXCEPT:
A. high-volume products usually have smaller markups than do low-volume products.
B. the percentage markup depends on the type of retail store and the product involved.
C. markups must cover all expenses of the store, pay for overhead costs, and contribute
something to profits.
D. summing the total unit cost of providing a product or service and adding a specific
amount to the cost to arrive at a price.
E. supermarket managers have such a large number of products that estimating the
demand for each product as a means of setting price is impossible.
Answer:
All of the following are benefits to be stressed during the promotion of services
EXCEPT:
A. low price.
B. consistent quality.
C. location.
D. availability.
E. efficiency.
Answer:
Figure 17-2
If the salesperson’s objective is to ensure that the customer is satisfied with the product
or service, what is the name of this stage in the personnel selling process?
A. follow-up
B. prospecting
C. presentation
D. preapproach
E. close
Answer: