Intermodal transportation refers to the combination of two or more modes of
transportation.
An organization’s department follows a customer-centered sense-and-respond
philosophy. The department is most likely practicing the product concept.
On the BCG matrix, “question marks” are high-growth, high-share businesses or
products.
The main differences between business and consumer markets are in market structure
and demand, the nature of the buying unit, and the types of decisions and the decision
process involved.
Dynamic pricing is least prevalent online.
Nontariff trade barriers include restrictive product standards.
Megaretailers have shifted the balance of power between retailers and producers, giving
retailers more power.
Agencies bring an outside point of view to solving a company’s problems, along with
lots of experience from working with different clients and situations.
The General Agreement on Tariffs and Trade established the World Trade Organization
(WTO), which replaced GATT in 1995 and now oversees the original GATT provisions.
New-product development begins with a systematic search for new product ideas
through idea generation.
Labels range from simple tags attached to products to complex graphics that are part of
the packaging.
By using ________ to contact potential customers, marketers sell directly to consumers.
A) undercover marketing
B) outbound telephone marketing
C) affinity marketing
D) multi-level marketing
E) ambush marketing
Which of the following product mix pricing strategies involves setting prices across an
entire product range based on cost differences between the products, customer
evaluations of different features, and competitors’ prices?
A) by-product pricing
B) product bundle pricing
C) optional product pricing
D) captive product pricing
E) product line pricing
For which of the following products would the intensive distribution strategy most
likely be used?
A) high-end cameras
B) luxury cars
C) lawn mowers
D) soft drinks
E) furniture
As a result of the great success of corporate chains, many independent stores choose to
band together in either a voluntary chain or a(n) ________.
A) factory outlet
B) retailer cooperative
C) wholesale club
D) warehouse club
E) convenience cooperative
Which of the following statements is true of the production concept?
A) It considers customer focus and value to be the paths to sales and profits.
B) It follows the customer-centered sense-and-respond philosophy.
C) It takes an outside-in perspective.
D) It calls for sustainable marketing.
E) It leads to companies focusing too narrowly on their own operations.
In the model of buyer behavior, which of the following is NOT a major type of force or
event in the buyer’s environment?
A) economic
B) technological
C) social
D) political
E) cultural
Which of the following involves adjusting prices to account for the physical location of
customers?
A) location-based pricing
B) geographic pricing
C) domestic pricing
D) interior pricing
E) captive pricing
Overhead costs ________ as the number of units produced increases.
A) decrease
B) increase steadily
C) fluctuate
D) remain the same
E) increase rapidly
Which of the following is a risk associated with international trade?
A) technological obsolescence
B) highly unstable governments
C) market monopolization
D) lack of trade barriers
E) currency stagnation
La Belle released a a cut glass bottle of perfume at $299 per item, even though its major
competitor prices its signature scent at $99 per item. La Belle reasons that customers in
search of luxury goods will prefer its product because they are likelier to believe that
high price indicates superior quality. What price adjustment strategy is evident in its
reasoning?
A) seasonal pricing
B) time-based pricing
C) captive product pricing
D) psychological pricing
E) location-based pricing
Loft Industries sells roof trusses to contractors and builders and is currently looking for
honest feedback on its services. However, in the past, most of its efforts to procure
feedback from customers did not yield any meaningful data. According to the marketing
managers of Loft Industries, feedback was more polite than honest. Which of the
following contact methods should Loft Industries most likely use to maximize its
chances of receiving honest and impersonal feedback?
A) online focus groups
B) telephone interviews
C) mail questionnaires
D) group interviews
E) personal interviews
Which of the following is an example of an economic community?
A) NATO
B) BRIC
C) NAFTA
D) GATT
E) WTO
When companies watch both their buyers and their competitors, they are called
________.
A) shell companies
B) market-centered companies
C) customer-centered companies
D) dummy companies
E) maquiladoras
When McDonald’s offers its products inside of a Walmart store, it is using a(n)
________.
A) conventional marketing system
B) corporate VMS
C) contractual VMS
D) administered VMS
E) horizontal marketing system
Describing available services and support is most likely a goal of ________ advertising.
A) reminder
B) competitive
C) covert
D) attack
E) informative
Herb Marks was making wooden pens and pencils, which had unique engravings, as a
hobby until Mel Yoder recognized Herb’s talent. Mel immediately ordered 250 pens and
pencils of various styles to be displayed in his shop’s showcase. Within three months,
the wooden pencils were a hit with all school goers! Herb Marks had never thought of
marketing his talent, but Mel’s enthusiasm and the recent sales were enough to change
his mind.
With limited resources, Herb contacted three additional specialty shops within 100
miles which were situated near schools. He explained his manufacturing processes and
engraving options to each. All three shop owners placed a trial order. Within two
months, just prior to the holiday season, each shop owner placed an additional order.
Herb was ecstatic!
“I figured business would slow down after that,” Herb stated, “but in February I was
contacted by Elmore Distributors. At that point, I had to make a huge decision about
how far I wanted to go with this business.”
Elmore Distributors provides products for school fundraisers in a seven-state area. Herb
was offered a two-year contract and immediate inclusion in Elmore’s promotional flyer.
Herb Marks accepted the offer and, along with it, the responsibility to produce
thousands of wooden pens and pencils.
“I had to get a grip on the magnitude of this project,” Herb added.
Herb decided to place his major focus on the large contract with Elmore. However, to
avoid placing his total emphasis with one customer, Herb continued nurturing his four
previously established accounts without targeting any additional customers.
“At this point, I had set up an assembly line in a rented building,” Herb explained. “I
had to hire three full-time employees to work the line while I managed the customer
orders and purchased materials.” Herb paused. “But I can’t take the Elmore project for
granted. It might not always be there. I’ll have to have a good alternate plan if that day
comes.”
In the scenario, Herb has segmented his market based on ________.
A) geography
B) benefits sought
C) occasion
D) degree of loyalty
E) demographics
The market researchers at HoneyCamp Foods gather daily sales data and sort it by
product line and region. With the help of sophisticated tools and techniques, they
develop the data needed by marketing managers to evaluate the market share of the
company’s different products and also to gain valuable market insights. This mix of
people and procedures at HoneyCamp Foods that generate actionable marketing
insights represents a(n) ________.
A) enterprise planning system
B) product mix
C) underground economy
D) marketing information system
E) niche market
________ are the first link between the seller and the final buyer and they move
company products from points of production to the borders of countries within which
they are sold.
A) Channels between nations
B) Channels within nations
C) Retail channels
D) Large-scale channels
E) Value chain channels
Which of the following is a disadvantage of a team-based approach to new-product
development?
A) It takes longer for the development of a new product.
B) The development effort is not as effective because of employee inexperience.
C) It decreases the efficiency of the new-product development process.
D) It results in organizational confusion and tension.
E) The process does not work with the shorter life cycles of many of today’s products.
To measure the ________ effects of an ad after it has aired, the advertiser can evaluate
how the ad affected consumer recall, product awareness, and preference.
A) sales
B) profit
C) communication
D) continuity
E) associativity
Briefly explain why Americans amassed record amounts of debt and why the
free-spending trend has ended.
Explain the significance of a downward-sloping experience curve.
Briefly describe the presentation stage of the selling process.
When is it advisable to predominantly use sales promotions in a promotion mix?
Name some common convenience products.
Define brand personality.
Briefly explain local and individual marketing.
How is the societal marketing concept related to marketing ethics?