_____ involves determining the recognized need, buying power, and receptivity and
accessibility of a sales prospect.
a. Negotiation
b. Customization
c. Lead reciprocity
d. Lead qualification
Answer:
Volten Inc. is an online apparel store. It has separate sections for casual wear, office
wear, and party wear. It also divides its products on the basis of price to suit people of
various income levels. In this way, it caters to different sections of society. Which of the
following bases has the company most likely used for positioning its products?
a. Product class
b. Emotion
c. Attribute
d. Product user
Answer:
A firm’s marketing mix is not influenced by the market segmentation process.
a. True
b. False
Answer:
Households with older children generally spend more on food, entertainment, personal
care products, and education. This most likely reflects the influence of which of the
following on purchase decisions?
a. Gender
b. Opinion leaders
c. Age
d. Reference groups
Answer:
A(n) _____ is the combination of advertising, personal selling, sales promotion, social
media, and public relations that are used to reach the target market and fulfill an
organization’s overall goals.
a. communication model
b. advertising campaign
c. marketing mix
d. promotional mix
Answer:
Intensive distribution is a form of distribution aimed at minimum market coverage.
a. True
b. False
Answer:
Consumers can be influenced by reference groups only if they belong to those groups.
a. True
b. False
Answer:
Kay and Jenny’s, a restaurant, has implemented a new system that identifies and gathers
information about its regular customers. It rewards the regular customers by giving
them gift coupons and cash prizes. This is most likely an example of a(n) _____ system.
a. organizational optimization
b. profit maximization
c. total quality management (TQM)
d. customer relationship management (CRM)
Answer:
The quantity of a product that people will buy is most likely to decrease as the product’s
_____ increases.
a. distribution
b. quality
c. price
d. promotion
Answer:
When Dernz Inc. introduced its ketchup globally, it first had to deal with the fact that
ketchup is not a household staple outside the United States. The company had to show
foreign users how ketchup can be used. In this case, Dernz had to rely primarily on
_____ advertising to reach out to consumers.
a. reminder
b. persuasive
c. informative
d. compulsive
Answer:
At a local retail store, Randi saw a bag of daffodil flower bulbs and a box of plant
fertilizer. The items, which were sold together, retailed at $28.50 but were marked down
to $19.99. The $19.99 is the:
a. revenue.
b. price.
c. profit.
d. liquidity value.
Answer:
_____ refers to the inability of services to be stored, warehoused, or inventoried.
a. Variability
b. Irreversibility
c. Heterogeneity
d. Perishability
Answer:
TrustUs Insurance’s tagline is “You’re in safe hands with TrustUs,” and Serenity Life
Insurance uses a rock as its trade symbol because it wants to convey stability. What type
of promotion strategy are these companies using?
a. Engaging in postpurchase communication
b. Creating a strong organizational image
c. Using personal information sources
d. Adopting standardization
Answer:
The final step in market segmentation is designing, implementing, and maintaining
appropriate marketing mixes.
a. True
b. False
Answer:
Marketing objectives must be consistent with and indicate the priorities of the
organization.
a. True
b. False
Answer:
Raj and Ben are best friends. Raj regularly participates in marathons and is part of the
marathon runners club at his university. Ben also wants to be part of the club but is not
a very strong runner. Ben decides to start running every day so that he can soon
participate in a marathon and become part of the club. Given this information, marathon
runners act as which type of reference group for Ben?
a. A secondary reference group
b. A primary reference group
c. An aspirational reference group
d. A nonaspirational reference group
Answer:
The advertisements for ground coffee sold by Khokho’s Inc. state, “The highest quality
coffee doesn”t have to be expensive.” This is an example of how a product
communicates its _____.
a. marketing mix
b. comparative differentiation
c. competitive advantage
d. researchable objective
Answer:
Which of the following is a disadvantage associated with an undifferentiated targeting
strategy?
a. It requires a firm to tailor marketing mixes to the preferences of market segments.
b. It often results in product offerings that are unimaginative and sterile.
c. It involves a high risk of cannibalization of products.
d. It is expensive because of high production and marketing costs.
Answer:
Jove is a chocolate manufacturing company in Harrington City. While most of its
competitors produce not more than three basic varieties of chocolates, Jove sells over
50 different varieties of flavored chocolates. This gives them an edge over other
chocolate makers in Harrington City. Which of the following concepts is illustrated in
the scenario?
a. Divestment
b. Market penetration
c. Sustainable competitive advantage
d. Diversification
Answer:
Which of the following changes has been brought about in advertising because of the
influence of social media?
a. The number of ways in which marketers can have direct and meaningful
conversations with customers has reduced.
b. The focus of social media has unavoidably shifted to manufacturers.
c. The interaction between producer and consumer has become less about engaging and
more about entertaining.
d. The audience is often in control of the message, the medium, the response, or all
three.
Answer:
The purpose of test marketing is to:
a. eliminate ideas that are inconsistent with an organization’s new-product strategy.
b. shorten the development process of a product and reduce costs.
c. assess how well various aspects of the marketing mix fit together.
d. evaluate a new-product idea before any prototype is created.
Answer:
A product is defined as a business product rather than a consumer product on the basis
of its _____.
a. intended use
b. physical characteristics
c. price
d. distribution method
Answer:
Relationship marketing assumes that many consumers and business customers prefer to
have an ongoing relationship with one organization rather than switch continually
among providers in their search for value.
a. True
b. False
Answer:
Ethics refers to a firm’s belief that an ongoing relationship with another firm is so
important that it warrants maximum efforts at maintaining it indefinitely.
a. True
b. False
Answer:
A(n) _____ is an intermediary who brings a buyer and a seller together.
a. licenser
b. export broker
c. contract manufacturer
d. export merchant
Answer:
Advent Automobiles Inc. launches a new sport utility vehicle. The company places
advertisements in leading newspapers and social media sites to reach out to consumers.
In the context of the communication process, Advent Automobiles Inc. is the _____.
a. sender
b. decoder
c. informer
d. receiver
Answer:
The intangible nature of services requires service firms to use indirect distribution over
direct distribution or franchising.
a. True
b. False
Answer:
_____ is the condition that exists when one party has confidence in an exchange
partner’s reliability and integrity.
a. Obeya
b. Trust
c. Keiretsu
d. Commitment
Answer:
When a product name becomes generic, the product name is no longer recognized as
the exclusive property of a firm.
a. True
b. False
Answer:
The focus of a mission statement of an organization should be on:
a. supply chain management.
b. internal operational procedures.
c. anti-competitive strategies.
d. the market the business serves.
Answer:
In the context of direct foreign investment, direct investors have the lowest potential
reward and the lowest potential risk.
a. True
b. False
Answer:
A difference between early majority and early adopters is that early majority are:
a. more likely to be opinion leaders.
b. more eager to try new products and ideas, almost as an obsession.
c. likely to collect more information and evaluate more brands.
d. less likely to extend the adoption process.
Answer:
Increasing globalization of markets and competition provides a reason for multinational
firms to consider new-product development from a worldwide perspective.
a. True
b. False
Answer: