Document Type
Test Prep
Book Title
A Preface to Marketing Management 14th Edition
J. Paul Peter, James Donnelly
Which of the following is true of the processes and tasks used to carry out market
A. All nations take censuses and publish their census reports in English.
B. Data contained in a census do not vary from country to country.
C. Data contained in a census often omit items of interest to researchers.
D. Since a market researcher does not encounter problems in using census data, it is
considered the best source of demographic information.
Which of the following is a disadvantage of the all-you-can-afford approach to deciding
advertising budget?
A. It assumes a connection between liquidity and advertising opportunity.
B. It views advertising as a function of sales, rather than sales as a function of
C. It does not limit its advertising outlays to the amount of available funds.
D. It sets no limits on the expenditures for advertising.
An advantage of mail surveys is the ease they provide in the area of _____.
A. collecting data and administering the surveys
B. determining the depth of responses from respondents
C. estimating nonresponse biases
D. collecting income and financial data
Which of the following best describes a strategic alliance?
A. It is a long-term partnership between two organizations designed to accomplish the
strategic goals of both parties.
B. It is a collaboration of two different departments within an organization in order to
implement the organization's strategic plan.
C. It is a team consisting of members from different functional areas of the organization
that work together to solve a strategic issue.
D. It is an alliance with experts outside an organization who are called in to help the
organization generate new product ideas.
Gary usually buys a specific brand of snack bars from his neighborhood store. He
considers it a low-involvement purchase. This implies that Gary is:
A. unlikely to engage in extensive search.
B. not concerned about ready availability of the product.
C. likely to engage in extensive decision making.
D. likely to be influenced by reference groups.
Gary is a consumer seeking a low-involvement product since he is not particularly
engaging in gaining product knowledge. Therefore, he is unlikely to engage in
extensive search, so ready availability is important for him.
2Posterity, a cosmetic manufacturer, introduces a new range of anti-wrinkle creams.
The company pays slotting allowances to a retailer in advance in order to ensure that its
products are placed at the front counter of the store where sales are much greater than
along the aisle. This act by 2Posterity is an ethical and legal concern associated with
A. advertising
B. public relations
C. sales promotion
D. personal selling
Which of the following is the least costly stage in the new product development
A. Product development
B. Commercialization
C. Test marketing
D. Idea generation
Which of the following is an example of forward integration in corporate vertical
marketing system?
A. A car manufacturer acquiring a retail showroom
B. A car dealer achieving a direct channel of distribution without ownership
C. A grocery wholesaler buying a sugar manufacturer
D. A laptop distributor buying a computer chip maker
Premiums are:
A. prizes that are available either through chance selection or games of skill.
B. rewards or gifts that can come from purchasing a product.
C. reimbursements for spot purchasing deals.
D. discounts offered from the product's regular price.
Which of the following statements is true of a brand-manager system?
A. Brand managers have difficulties in their line of work because they do not have
authority commensurate with their responsibilities.
B. A brand-manager system is superior to a market-manager system on many levels.
C. Brand managers are responsible for overseeing all brands within a particular line.
D. A brand-manager system is popular in organizations with a line or lines of similar
products or one dominant product line.
A problem during the idea generation stage of the new product development process
within an organization is:
A. the heavy costs involved in terms of investment in funds, time, and personnel.
B. the interference of the top management of the organization that is totally unnecessary
at this stage.
C. to avoid ideas coming from unusual sources that have a high level of escalation of
D. to ensure that all new product ideas available to the company at least have a chance
to be heard and evaluated.
Which of the following is true of random lead generation?
A. Random lead generation is used when there is an existing database of names and
addresses of prospects.
B. Random lead generation usually requires a lower number of contacts to gain a sale.
C. Households and businesses are insignificant sources for random leads.
D. Random lead generation can be carried out by employing mass appeals and
Run With Scissors Inc., a hair salon, advertises its trendy and affordable offerings
primarily through the use of social media. The type of strategy the hair salon uses can
best be classified as marketing for a(n) _____.
A. product
B. service
C. cause
D. organization
Run With Scissors Inc. offers services that are intangible. Marketing for a service
involves marketing designed to create exchanges for intangible products.
New service development with tangible products ensures:
A. that the service can be separated from the producer.
B. that the market is not segmented.
C. that the practice of targeted marketing is discounted.
D. that there are no alternate means for distributing a service.
In the VALSâ„¢ framework, _____ can be viewed as the opposite of Innovators in
terms of resources and innovations.
A. Strivers
B. Makers
C. Achievers
D. Survivors
On what assumption is the BCG Portfolio Model based?
A. Profitability and cash flow will be closely related to sales volume.
B. Return on investment (ROI) will be directly related to sales volume.
C. Cash flow is equal to investment.
D. Investment + Cash flow = Profitability.
Which of the following is true of the idea screening phase of the new product
development process?
A. New product ideas are not eliminated merely because they are outside the fields of a
firm's interest.
B. Lack of technology and resources is often not a useful reason to discount new
product ideas.
C. A firm must consider three categories of risk and risk tolerance in the idea screening
phase prior to reaching a decision.
D. Unlike the idea generation stage, the idea screening stage is not involved in
expanding viable ideas into full product concepts.
The strategic plan at Steve Walden Inc. helps in the creation of functional area plans for
the production, human resource, finance, and technology functions. This best
demonstrates the process of:
A. market diversification.
B. product-related diversification.
C. cross-functional strategic planning.
D. marketing planning.
Until the advent of satellite television, cable television providers acted as monopolies in
their respective geographic areas and did little to change the type of service offered or
the service offering in spite of increasing customer demands. Considering this, which of
the following explains the reason behind the attitude exhibited by cable television
A. Lack of strong competition
B. High degree of obsolescence
C. Absence of a growth strategy
D. Emphasis on service as an art
Which of the following statements about marketing research is true?
A. Marketing research that is executed carefully is free from errors.
B. Marketing research is an aid to decision making.
C. Marketing research is a substitute for decision making.
D. Marketing research forecasts with certainty what will happen in the future.
Which of the following is a disadvantage of the telephone survey as a research
A. It results in a non-centralized control of data collection.
B. It results in a disproportionate coverage of low-income groups.
C. It results in a lengthy and drawn-out data collection process.
D. It results in the least cost-effective method of data collection.

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