Book Title
A Preface to Marketing Management 14th Edition

BUSMKT 570 Test 1

October 29, 2015
According to the process of product adoption and diffusion, which of the following
adoptive categories first begins to buy a product if the experience of innovators has
been favorable?
A. Laggards
B. Early majority
C. Late majority
D. Early adopters
The Nielsen PRIZM system is based on the assumptions that:
A. consumer lifestyles remain constant throughout different geodemographic segments
of consumers, making geodemographic segmentation less effective.
B. consumers in particular neighborhoods are similar in many respects and the best
prospects are those who actually use a product or other consumers like them.
C. implementation and control of the marketing plan requires segmentation based on
psychographic lines.
D. achievement-oriented targets need to be made in order to increase sales of an
Enchante Inc. is a high-end perfume manufacturer. It slashed the price of its brand of
perfume "Entice" by 5 percent which resulted in a 20 percent increase in sales. Estimate
the price elasticity for Entice.
A. 4
B. 5
C. 20
D. 100
Which of the following adoptive categories involved in the diffusion of innovation is
the most reluctant to make changes and is comfortable with traditional products?
A. Early majority
B. Laggards
C. Early adopters
D. Innovators
HealthPlus Corp., a popular manufacturer of processed food products, recently
introduced specialty infant food under the brand name of Nutrababy. Which of the
following new product categories does this product fall into?
A. New-to-the-world products
B. Additions to existing product lines
C. New-to-the-firm products
D. Product improvements
_____ is the first stage in the sales relationship-building process.
A. Presentation
B. Planning a sales call
C. Obtaining commitment
D. Prospecting
An advantage for many service industries is the fact that services, because of their
intangibility, are less subject to _____ than goods.
A. obsolescence
B. innovation
C. quality control
D. creativity
The dependence in administered vertical marketing systems can result from the
existence of a strong:
A. buyer preference.
B. corporate system.
C. channel leader.
D. distributor network.
Elite Inc. began as a brand of luxury clothing and accessories targeted at affluent
working women. However, it altered its offerings to include a large proportion of
standard clothes at cheaper prices when the country was faced with severe recessionary
pressures. In this scenario, which of the following did Elite primarily respond to by
changing its offerings?
A. The legal environment
B. The competitive environment
C. The cooperative environment
D. The economic environment
Which of the following statements about the types of organizational purchases is true?
A. There are more suppliers to deal with in a straight rebuy than any other type of
B. The time frame for a new task purchase is much shorter than that for a straight rebuy.
C. New task purchases are more complex than straight rebuys and modified rebuys.
D. A modified rebuy involves routinely ordering the same products from the same
FemPlus, a manufacturer of cosmetics, shares expenditures incurred toward
promotional activities like advertising with its intermediaries. Additionally, it provides
them with operational aids such as a computer-aided inventory system. These measures
by FemPlus primarily seek to:
A. shorten its channel of distribution.
B. curtail distribution costs.
C. provide autonomy to the distributor in selling its products.
D. maintain a degree of control over its intermediaries.
Online retailing provides an advantage for marketers by:
A. being very effective in business-to-consumer markets than in business-to-business
B. being extremely cost-efficient by reducing the need for paper catalogs.
C. providing high entry barriers leading e-marketers to overemphasize order-taking.
D. expanding the markets to people who are willing and able to purchase electronically.
Which of the following statements is NOT true of the ethical responsibilities of
marketing researchers toward their clients?
A. Marketing researchers are obliged to reveal information about a client to competitors
and should carefully consider when a company should be identified as a client.
B. Marketing researchers are obliged to design efficient studies without undue expense
or complexity and accurately report results.
C. Marketing researchers are obliged to price their work fairly without hidden charges.
D. Marketing researchers are obliged to promote the correct usage of research and to
prevent the misuse of findings.
Malcolm purchased health insurance from Healwell Insurance Corp. as he was
guaranteed that he would be able to claim the expense incurred on his treatment in
future. With this guarantee, the insurance corporation was able to win the trust and
confidence of Malcolm primarily due to the firm's service quality of _____.
A. intangibility
B. assurance
C. profitability
D. apathy
Kinglinks, a cereal manufacturer, wants to promote its new line of protein bars to its
target audience using a nonpersonal form of communication. Kinglinks is least likely to
rely on _____ as a means of communication.
A. advertising
B. sales promotion
C. public relations
D. direct marketing
Which of the following is true of a multidomestic company?
A. It pursues different strategies in each of its foreign markets.
B. It emphasizes cultural similarities across countries and universal consumer needs and
wants rather than differences.
C. It standardizes marketing activities when there are cultural similarities and adapts
them when the cultures are different.
D. It views the world as one market and pits its resources against the competition in an
integrated fashion.
Which of the following observations pertains to strategic business units (SBUs)?
A. They are provided resources from outside the organization to which they belong.
B. They have centralized management, no competitors, and little autonomy.
C. They are organizations that have come together to achieve a common goal.
D. They can be planned independently of the other businesses of the total organization.
Under which of the following conditions might a manufacturer wish to have its own
sales force?
A. When the manufacturer is a small player in that product category
B. When the market for its products is geographically concentrated
C. When the products require minimal presale and postsale services
D. When the market consists of many small customers
Retailers support manufacturers by:
A. featuring brands in their ads to attract buyers.
B. distributing coupons to them.
C. raising the prices of the manufacturers' products.
D. discouraging personal selling.
HeadStart, an automobile manufacturer, has found that sales of its RockStart SUV has
fallen over the last few years. Consequently, HeadStart introduces a new, revamped
version of the SUV with additional features such as a latest GPS technology device and
padded dashboards. The company stops production of the old model in order to invest
all of its resources into marketing this new model in its present market. In this scenario,
which of the following growth strategies is HeadStart employing?
A. Market development
B. Market penetration
C. Product development
D. Product penetration
According to the VALSâ„¢ framework, consumers driven by knowledge and principles
are motivated primarily by _____.
A. ideals
B. achievement
C. self-expression
D. success
Unis Technologies has introduced a new installation program that is the first of its kind
and requires a great deal of complex technological understanding. Although it is being
marketed as a user-friendly system, consumers are apprehensive about buying it. Unis
Technologies' promotion mix will likely:
A. focus heavily on personal selling.
B. contain short-run incentives.
C. rely on sales promotion.
D. rely on advertising.
Three college friends, Ahmed, Thomas, and Diego, have turned their interest in
backpacking and wilderness exploration into a profitable business partnership. Based on
the season's demand, they conduct exploration camps at regular intervals. Ahmed's
girlfriend, Medina, assists Ahmed in the operational activities of the business. Thomas
interacts with various vendors to negotiate and procure the supplies needed for the
business and Diego looks after the company's logistics. Who would most probably be
the buyer in this business?
A. Diego
B. Medina
C. Thomas
D. Ahmed

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