Introducing intermediaries into a distribution chain increases the number of direct
channel transactions between a manufacturer and its customers.
A consumer’s buying behavior is often influenced by reference groups to which the
consumer does not belong.
Price escalation is caused by transportation costs, tariffs, importer margin, wholesaler
margin, and retailer margin. As a result, foreign prices are typically lower than domestic
prices for comparable products.
The Federal Trade Commission enforces laws that prevent unfair competition in
business.
Product, price, place, and promotion make up the elements of a firm’s marketing mix.
Branding and advertising tend to be more important marketing factors than price and
service for industrial products categorized under materials and parts.
Subsistence economies provide the best marketing opportunities to companies.
Each basic consumer right has led to more specific proposals from consumerists, such
as nutritional and ingredient labeling.
According to the World Bank, firms from Belgium, Haiti, and Russia engage in the
most corrupt business practices.
The federal government has the legal authority to prevent a company from adding
products through acquisitions if the acquisition threatens to lessen competition.
Integrated marketing communications involves carefully coordinating a company’s
many communications channels to deliver a clear, consistent, and compelling message
about the organization and its products.
“At Dodson, we sell shoes” is a market-oriented business definition.
Permission-based e-mail advertising is conducted based on customers’ expressed
preferences and previous purchases.
Income distribution generally remains constant across different types of economies.
A customer buys a can of Pepsi from a Walmart store. In this scenario, Walmart is a
supplier in Pepsi’s value delivery network.
Customer markets are part of a manufacturer’s microenvironment.
The price that a company should charge in a specific country depends on the nature of
the wholesaling and retailing system in that country.
Success at delivering customer value rests on how well a company’s entire supply chain
performs against competitors’ supply chains.
When backed by buying power, wants become ________.
A) needs
B) demands
C) offerings
D) values
E) ideas
Which of the following is most likely true of branded community Web sites?
A) They provide engaging content.
B) They offer little information about the brand.
C) They contain interactive selling features.
D) They mostly contain static content.
E) They contain heavy pop-up ads of a firm’s products.
Which generational group is most likely less materialistic when compared with other
groups?
A) Generation Z
B) Generation X
C) baby boomer
D) Millennial
E) the Lost Generation
________ pricing occurs when a seller states prices or price savings that mislead
consumers or are not actually available to consumers.
A) Predatory
B) Psychological
C) Deceptive
D) Cost-plus
E) Allowance
When market segments are conceptually distinguishable and respond distinctively to
various marketing mix elements and programs, they are said to be ________.
A) accessible
B) measurable
C) reachable
D) differentiable
E) observable
Customers recognize the products of Breads & Butters, a coffee shop, by identifying the
“twisted bread” logo that helped the firm revolutionize its products. In this case, the
firm has differentiated itself through its ________.
A) image
B) people
C) services
D) channels
E) positioning
________ allows consumers to gain additional information about a product or purchase
a product through the use of a remote control.
A) Direct-mail marketing
B) Telemarketing
C) Podcasting
D) Data mining
E) Interactive TV
________ are the form human needs take as they are shaped by culture and individual
personality.
A) Wants
B) Necessities
C) Services
D) Benefits
E) Risks
According to the text, the most logical budget-setting method in advertising is the
________ method.
A) adaptive-control
B) objective-and-task
C) competitive-parity
D) affordable
E) percentage-of-sales
Tavera, an automobile company, experienced a significant decline in sales over the last
10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising,
and sales expenditures for Tetra in an attempt to improve short-run profits. Which term
best describes Tavera’s actions with regards to Tetra?
A) sales outsourcing
B) product modification
C) industry repositioning
D) product harvesting
E) marketing mix modification
________ products give both high immediate satisfaction and high long-run benefits.
A) Deficient
B) Pleasing
C) Desirable
D) Salutary
E) Threatening
In a promotion mix, ________ involves personally connecting with carefully targeted
individual consumers to both obtain an immediate response and cultivate lasting
customer relationships.
A) direct marketing
B) advertising
C) public relations
D) predictive analytics
E) indirect procurement
Which of the following groups is included in both a company’s value chain and its value
delivery network?
A) customers
B) suppliers
C) employees
D) distributors
E) competitors
Kathy Jenkins is planning to conduct research on consumers’ personal care routines.
Since the questions are likely to be personal and sensitive, Kathy wants to select a
contact method that will encourage respondents to answer honestly. Which of the
following contact methods is most likely to serve Kathy’s purpose?
A) mail questionnaires
B) telephone interviews
C) individual interviews
D) focus group interviews
E) online discussions
Which of the following are examples of internal publics of a company?
A) newspapers, magazines, television stations, blogs, and other Internet media
B) governmental departments and agencies that regulate businesses
C) neighborhood residents and community organizations
D) the managers, board of directors, and workers of the company
E) the general public that is directly affected by the company
The production concept holds that ________.
A) consumers will not buy enough of a firm’s products unless the firm undertakes a
large-scale selling and promotion effort
B) a company’s marketing decisions should consider consumers’ wants, the company’s
requirements, consumers’ long-run interests, and society’s long-run interests
C) consumers will favor products that are available and highly affordable
D) achieving organizational goals depends on knowing the needs and wants of target
markets and delivering the desired satisfactions better than competitors do
E) consumers will favor products that offer the most in quality, performance, and
innovative features
A company that sells personal care products sends a trained observer to watch potential
buyers in their natural environments. This is an example of ________ research.
A) quantitative
B) online
C) ethnographic
D) experimental
E) archival
Which of the following steps of the new product development process would most
likely use an R-W-W framework?
A) idea generation
B) idea screening
C) concept testing
D) test marketing
E) commercialization
A product line is most likely too short if managers can ________.
A) increase profits by dropping items
B) decrease costs by adding items
C) increase market share by dropping items
D) decrease costs by dropping items
E) increase profits by adding items
________ products are consumer products and services with unique characteristics or
brand identifications for which a significant group of buyers is willing to make more
effort than usual to purchase.
A) Unsought
B) Obsolete
C) Intangible
D) Convenience
E) Specialty
________ provide the resources needed by a company to produce its goods and
services.
A) Wholesalers
B) Suppliers
C) Physical distribution firms
D) Media firms
E) Retailers
Explain why business demand is considered a derived demand.
Describe direct-response television (DRTV) marketing.
Amex Retail, the country’s largest and oldest retail chain, was recently recognized as
one of the most influential companies in the U.S. The company aims to capitalize on
this opportunity by implementing major marketing activities to capture the attention of
consumers, politicians, and environmentalists. The company was one of the first to do
away with plastic bags, and the public relations division is contemplating the adoption
of additional green retailing practices. Would this move reflect sound business tactics?
What other measures can Amex Retail take in this direction?
What is a contractual vertical marketing system? Give an example of a type of business
that works as a contractual VMS.
Compare and contrast the four major strategies that are generally used to target market
segments.
Explain the use of sales promotions as a promotion mix tool.
Posco, a limited-service retail chain with 130 stores across the country, is seeking to
improve its standing in the market. Since its operations are widespread, altering the
store atmosphere significantly is not feasible because of the costs involved. Similarly,
upgrading the stores to full-service retail chains would require a large investment of
time, effort, and employee training. Assuming that many of Posco Retail’s private-label
brands are bringing in large revenues, what strategy could Posco Retail use to
differentiate itself while matching target shoppers’ expectations?