A manufacturer does marketing research and estimates that consumers will accept a
manufacturer’s suggested retail price of $50 for a jacket. The manufacturer expects to
offer trade discount terms of 40/10/5 to retailers, wholesalers, and agents in the
marketing channel. What price will the manufacturer receive for the jacket?
a. $47.50
b. $45.00
c. $30.00
d. $27.50
e. $25.65
Answer:
A conspiracy among firms to set prices for a product is referred to as
a. price discrimination.
b. price fixing.
c. predatory pricing.
d. tying arrangements.
e. exclusive dealing.
Answer:
A company uses __________ when it manufactures products but sells them under the
brand name of a wholesaler or retailer.
a. manufacturer branding
b. private branding
c. generic branding
d. co-branding
e. brand licensing
Answer:
Asian Americans who are conversant in English, highly educated, hold professional and
managerial positions, and exhibit buying patterns very much like typical American
consumers are referred to as __________.
a. socialized
b. upper class
c. nonassimilated
d. subcultured
e. assimilated
Answer:
All of the following are output-related sales objectives EXCEPT _____.
a. unit sales
b. profit
c. number of new customers
d. number of sales calls
e. dollar sales
Answer:
A field of study that examines the correspondence between symbols and their role in the
assignment of meaning for people is referred to as
a. back translation.
b. symbiotics.
c. semiotics.
d. symbolic linguistics.
e. cross-cultural analysis.
Answer:
Advertising refers to
a. any nonpersonal, indirectly paid presentation of an organization, service, or product.
b. a short-term inducement of value offered to arouse interest in buying a product or
service.
c. methods used to identify a target market for a particular product or service.
d. any paid form of nonpersonal communication about an organization, product,
service, or idea by an identified sponsor.
e. any unpaid form of personal presentation of products and services.
Answer:
Figure 1.
Consider Figure 1. above, which is an account management policy grid that groups
customers according to level of opportunity and the firm’s competitive sales position.
“C” represents what account management policy?
a. Consider (1) replacing personal calls with telephone sales or direct mail to service
accounts and (2) dropping the account if it is unprofitable.
b. Accounts should emphasize a heavy sales organization position or shift resources to
other accounts if a stronger sales organization position is impossible.
c. Accounts are somewhat attractive because the sales organization has a strong
position, but future opportunity is limited.
d. Accounts should receive a high level of sales calls and service to retain and possibly
build accounts.
e. Accounts should receive moderate level of sales and service to maintain current
position of sales organization.
Answer:
Greeting cards are an example of a __________, and Valentine cards are an example of
a __________.
a. product line; product class
b. product family; product line
c. product class; product form
d. product brand; product line
e. product form; product class
Answer:
In 2001, six executives of Tyson Foods, one of the world’s largest poultry, beef, and
pork processors, were arrested for the illegal smuggling of undocumented foreign
workers into the U.S. to work at Tyson plants. Based on this information, one could
conclude that Tyson’s violations are the result of __________, one of the major reasons
why some company employees engage in ethical behavior.
a. a mission statement that is too broad
b. the absence of a written core values statement
c. the absence of whistle-blowers
d. top management’s behavior
e. the absence of a stakeholder code of ethics
Answer:
Demographers predict that the number of people in the U.S. aged 65 and over will
__________ by 2030.
a. almost double
b. be significantly less than the number of children under 18 years old
c. increase at the same rate as the rate for developing countries
d. increase at the same rate as the rate for developed countries
e. stay the same as today
Answer:
The sum of the expenses of a firm that is stable and does not change with the quantity
of the product that is produced and sold is referred to as
a. fixed cost.
b. total cost.
c. variable cost.
d. marginal cost.
e. overhead cost.
Answer:
In the hierarchy of effects, trial refers to
a. the consumer’s ability to recognize and remember the product or brand name.
b. the consumer’s appraisal of the product or brand on important attributes.
c. the consumer’s first actual purchase and use of the product or brand.
d. an increase in the consumer’s desire to learn about some of the features of the product
or brand.
e. a favorable experience on the first trial, resulting in the consumer’s repeated purchase
and use of the product or brand.
Answer:
The value added dimension of the retail positioning matrix includes elements such as
location, product reliability, and __________.
a. prestige
b. price
c. market share
d. number of employees
e. level of service
Answer:
Which of the following statements regarding price cutting is most accurate?
a. Marketers should only consider price cutting if primary demand for a product class
will remain stable.
b. Marketers should only consider price cutting if the price cut can be made across all
items in a product line and all product lines in a product mix.
c. Marketers should only consider price cutting if the price cut is confined to customers
within specific target market segments.
d. Marketers should only consider price cutting if the firm also increases advertising.
e. Marketers should never consider price cutting unless a product is in the introductory
stage of its product life cycle.
Answer:
A price reduction given when a used product is part of the payment on a new product is
referred to as a __________.
a. cash discount
b. seasonal discount
c. trade-in allowance
d. promotional allowance
e. subsidy discount
Answer:
Recently, many organizations have added __________ to their mission statements.
a. a business definition
b. a social element to reflect what is morally right and worthwhile
c. an economic element to promote profit maximization
d. an expanded definition of stakeholders to include its competitors
e. their level of pricing and product quality.
Answer:
Which of the following pieces of information is used in the implementation phase of the
strategic marketing process?
a. corporate return on investment
b. revenues associated with each point of market share
c. trends for industry and competitors
d. possible cannibalization effects on other products in the line
e. organizational charts
Answer:
Which of the organizations listed below has the lowest inventory carrying cost?
a. restaurant
b. automobile repair
c. amusement parks
d. employment agencies
e. animal hospital
Answer:
The Trademark Law Revision Act (1988)
a. prevents someone from using a trademark on a noncompeting product.
b. provides for registration of a company’s trademarks.
c. protects only the consumer.
d. allows a company to secure rights to a name before its actual use.
e. facilitates the protection of U.S. trademark rights throughout the world.
Answer:
One advantage of using magazines as an advertising medium is
a. the cost of placing a magazine ad is extremely low.
b. it takes a relatively short time to place the ad.
c. the ads can be clipped and saved.
d. the ease of translating consumer interests into a successful publication.
e. there is little need or benefit to incorporate four-color graphics.
Answer:
Figure 1.
Which of the following forms of direct marketing has the highest business usage rate
according to Figure 1. above?
a. e-mail
b. direct mail
c. paid search
d. telemarketing
e. advertising
Answer:
After watching a 30-second commercial from Jarrod’s fine jewelry, Mariah was certain
the brooch she saw would look spectacular on her new evening dress. In terms of the
communication process, Mariah engaged in the task of __________.
a. integrating
b. sending
c. decoding
d. messaging
e. encoding
Answer:
A reference group that a person wishes to be a member of or wishes to be associated
with is referred to as a(n) __________ group.
a. preference
b. membership
c. aspiration
d. assimilation
e. integrated
Answer:
The Betty Crocker marketing team that developed Warm Delights challenged the food
scientists at General Mills to make an indulgent, delicious, and gooey dessert. So, they
wanted which of these characteristics in the dessert?
a. no cleanup
b. a single portion
c. quick preparation
d. consistent great taste
e. all of the above
Answer:
A company’s operating statement is also called its ______________.
a. income statement.
b. balance sheet.
c. defacto annual report.
d. assets-liabilities statement.
e. data mine.
Answer:
The __________ can be used to inform prospective buyers about the benefits of the
product.
a. promotional mix
b. promotion channel
c. communication channel
d. marketing mix
e. media mix
Answer:
A decision refers to
a. a premeditated selection resulting in a personal action.
b. a conscious choice among a set of alternatives that creates the least amount of risk.
c. a conscious choice from among two or more alternatives.
d. a subconscious selection of the alternative most consistent with one’s personal
beliefs.
e. an unconscious choice selected from a subset of positive alternatives.
Answer:
A person who is able and willing to cut red tape and move a program forward is
referred to as a
a. channel captain.
b. marketing mediator.
c. program director.
d. program champion.
e. program facilitator.
Answer:
Generally, the average length of time it takes for a product category to move from the
introduction stage of its product life cycle to the decline stage is __________.
a. 18 months
b. 5-10 years
c. 20 years
d. 30 years
e. unpredictable
Answer:
While the most commonly used pricing method for business products is cost-plus
pricing, this method is becoming more and more popular among __________ in the
service sector.
a. e-businesses
b. business-to-consumer firms
c. business-to-government sellers
d. nonprofit organizations
e. business-to-business marketers
Answer:
Four trends in the past decade have significantly influenced the landscape of global
marketing. One of them is:
a. an increase in economic protectionism and a decline in free trade.
b. a more aggressive attitude towards initiating international tariffs and quota systems.
c. a decrease in most countries’ GDPs and a renewal of nationalism.
d. global competition among global companies for global customers.
e. an increase in most countries’ GDPs coupled with an increased degree of consumer
ethnocentrism.
Answer: