The generation of children born between 1946 and 1964 is referred to as
a. baby busters.
b. millennials.
c. Generation Y.
d. baby boomers.
e. Generation X.
Answer:
Until federal laws and regulations were clarified to cover such cases, audio electronic
component manufacturers required that retailers who wanted to carry their amplifiers
also carry their speakers and sell their customers a ‘system” of same-brand components.
This distribution strategy, called __________, may be illegal.
a. bait and switch
b. caveat emptor
c. a tying arrangement
d. double dealing
e. per se
Answer:
Which of the following is an inherent strength of direct marketing?
a. Direct marketing can be adapted quickly to facilitate customer relationships.
b. Direct marketing is often the most credible source in the consumer’s mind.
c. Direct marketing can provide complex information.
d. Direct marketing can quickly stimulate and maintain market share.
e. Direct marketing is a low cost means of reaching the target market.
Answer:
To help differentiate a company’s brand from competitors, an improved version is
created, or new features are added to the original design, and product proliferation
occurs in the __________ stage of the product life cycle.
a. introduction
b. growth
c. maturity
d. decline
e. harvest
Answer:
Calculate a firm’s total revenue (TR) using the following information: the unit price (P)
for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and
the variable cost (VC) is $20,000.
a. $10,000
b. $50,000
c. $110,000
d. $150,000
e. cannot be determined with the information provided
Answer:
Ann recently saw an ad for Claritin, a medicine perfect for counteracting her allergy
symptoms. She immediately went to the store to purchase the product. In terms of the
communication process, the Claritin ad created a(n) __________.
a. stimulus
b. exposure
c. field of experience
d. subconscious impulse
e. response
Answer:
The newer a product and the earlier it is in its life cycle,
a. the lower the price the firm must charge.
b. the more competition it has.
c. the higher the price that can usually be charged.
d. the lower its production costs are.
e. the lower its unit variable cost is.
Answer:
The actions taken during market product focus and goal setting, Step 2 of the planning
phase, include: (1) set market and product goals, (2) select target markets, (3) find
points of difference, and (4) __________.
a. identify industry trends
b. research customers
c. develop the program’s marketing mix
d. develop the budget by estimating revenues, expenses, and profits
e. position the product
Answer:
KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is
an example of which type of global product strategy?
a. product extension
b. product customization
c. product adaptation
d. product invention
e. product integration
Answer:
Starbucks, Nike, and Johnson & Johnson provide customer value by providing its
customers with the best
a. assortment.
b. products/services.
c. price.
d. customer service.
e. availability.
Answer:
If you wanted to buy a McDonald’s Big Mac, small fries, and a small drink separately, it
you cost you $6.19. However, if you purchased these three items together as part of the
firm’s Extra Value Meal package, you would pay only $4.39, savings 80. This “Extra
Value Meal” price serves as __________ to you and other consumers, who compare the
costs and benefits of substitute items to a bundle containing those items.
a. a marginal analysis
b. a profit equation
c. a reference value
d. a break-even analysis
e. price elasticity of demand
Answer:
All of the following statements are true about newspapers EXCEPT:
a. many newspapers are adding complementary digital versions that can be viewed on
tablet devices and smartphones.
b. newspapers are generally limited to ads that call for an immediate customer response.
c. readers of news-oriented content are moving toward free websites and mobile
services.
d. most newspapers have recently experienced a surge in both circulation and
advertising revenue.
e. newspapers are an important local medium with excellent reach potential.
Answer:
The primary purpose of a competitive advertisement is to
a. tell people what a product is, what it can do, and where it can be found.
b. assure current users they made the right choice.
c. reinforce previous knowledge of a product.
d. promote a specific brand’s features and benefits.
e. promote the advantages of one product class over another.
Answer:
Which of the following types of vertical marketing systems is likely to experience the
least channel conflict?
a. corporate vertical marketing system
b. wholesaler-sponsored voluntary chain
c. retailer-sponsored cooperative
d. franchise system
e. administered vertical marketing system
Answer:
About 30 percent of the products sold from vending machines are __________.
a. candy and snacks
b. personal items
c. movies and videos
d. cold beverages
e. food
Answer:
To be a Walmart supplier, a firm must be able to deliver its products to Walmart
distribution centers within a 15-minute window. If the driver arrives before or after the
scheduled window, the supplier will be turned away and fined. Walmart’s insistence of
choosing a supplier based upon its ability to provide on-time delivery is an example of
a(n)
a. supplier value dimension.
b. derived demand factor.
c. evaluative criterion.
d. external performance measure.
e. organizational buying criterion.
Answer:
Figure 1.
According to Figure 1. above, “obtain primary data” occurs during which step of the
five-step marketing research approach?
a. “A”
b. “B”
c. “C”
d. “D”
e. “E”
Answer:
A __________ is essentially a sequence of linked suppliers and customers in which
every customer is, in turn, a supplier to another customer until a finished product
reaches the final consumer.
a. logistical flow
b. demand chain
c. supplier-customer alliance
d. supply chain
e. distributive cooperative
Answer:
Because __________ collect precise information about preferences and behavior of
individual buyers, a company becomes more knowledgeable about a customer and
better able to anticipate and fulfill that customer’s needs.
a. wikis
b. choiceboards
c. RSS feeds
d. cookies
e. collaborative filters
Answer:
Large multi-store chain retailers such as Sears, Safeway, and Target use a highly
formalized buying center referred to as a(n)
a. ad hoc committee.
b. buying committee.
c. central control unit.
d. purchasing department.
e. purchasing control system.
Answer:
Apex Therapeutic buys medical supplies and services from a variety of suppliers for
people with hemophilia and other related blood diseases. When Apex sells directly to a
person who is a hemophiliac, it would most accurately be classified as a(n)
__________.
a. industrial service provider
b. health care manufacturer
c. reseller
d. industrial firm
e. government agency
Answer:
Figure 3-A
The U.S. Office of Management and Budget has developed a classification system that
defines geographic areas based on the size of the population that is contained within
them. The U.S. Census Bureau uses these statistical areas to collect, tabulate, and
publish various reports on demographic profiles and economic activity. Based on Figure
3-A above, which of the following best defines a micropolitan statistical area for the
Dallas-Fort Worth geographic area?
a. the counties in the darker shaded areas (e.g. Grayson [Sherman-Denison], Collin,
Delta, Dallas, Kaufman, Johnson, Tarrant, Parker, Wise, etc.)
b. the cities of Mineral Wells, Gainesville, Bonham, Athens, and Granbury (within their
respective counties) in the lighter shaded areas
c. the counties of Wise, Parker, Tarrant, and Johnson bounded by the black line
d. the Fort Worth-Arlington area (within Tarrant county) that is in the darker shaded
area
e. the entire set of counties in the light and darker shaded areas
Answer:
The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as
gifts for almost every occasion imaginable. The Love Bandit Bear is one bear it
designed for people to give to each other on Valentine’s Day. The Love Bandit Bear is
an example of a
a. product item.
b. product mix.
c. product class.
d. product form.
e. product line.
Answer:
Offering several unrelated product lines in a single store is referred to as __________.
a. intertype competition
b. multiple distribution
c. scrambled merchandising
d. a department store
e. a specialty outlet
Answer:
World population projections show that the number of people 60 years of age and older
is expected to __________ by 2050.
a. decline by 1 billion
b. double to 4 billion
c. reach 2 billion
d. triple to 3 billion
e. reach 6 billion
Answer:
Which of the following represent elements of Step 2 of the price-setting process?
a. profit, market share, and survival
b. estimation of demand, sales revenue, and price elasticity
c. cost estimation, marginal analysis, and break-even analysis
d. demand for the product class and brand, newness of the product, and competition
e. market segmentation targeting, and positioning
Answer:
Personal selling requires the __________ flow of communication between a buyer and
a seller, often in a face-to-face encounter, designed to influence a person’s or a group’s
purchase decision.
a. direct
b. indirect
c. unsolicited
d. two-way
e. recursive
Answer:
Lifestyle refers to
a. the set of behaviors that is a result of spending one’s time and money as one pleases.
b. a mode of living that is defined by one’s personal moral philosophy.
c. the similar values, interests, and behaviors that members of society share.
d. a self-defined identification of belonging to a lower, lower-middle, middle,
upper-middle, or upper class in terms of values, attitudes, and beliefs.
e. a mode of living that is identified by how people spend their time and resources, what
they consider important in their environment, and what they think of themselves and the
world around them.
Answer:
In marketing, a(n) __________ generally includes not only physical goods, but services
and ideas as well.
a. action
b. invention
c. merchandise
d. product
e. concept
Answer:
The cost of reaching 1,000 individuals or households with the advertising message in a
given medium is referred to as
a. GRP
b. CPA
c. TMP
d. CPM
e. M
Answer:
Figure 1.
In Figure 1. above line “B” shows that __________, a tool of the promotion mix, is
highest in importance during the purchase stage of the consumer purchase decision
process.
a. advertising
b. public relations
c. communication
d. sales promotion
e. personal selling
Answer:
Geographical Pricing Map B
According to the Geographical Pricing Map B above, if the plant in Denver ships its
products to all of the identified cities at different prices based on distance as indicated
by the color-coded regions, it is most likely using which type of pricing?
a. FOB origin pricing
b. multiple-zone pricing
c. single-zone pricing
d. FOB destination pricing
e. basing-point pricing
Answer:
Generally, as the proportion of middle-income households in a country __________, the
nation’s purchasing power increases.
a. decreases
b. increases
c. levels off
d. reaches 33 percent of the total population
e. reaches 50 percent of the total population
Answer:
With respect to the history of American business, the __________ era started in the
1980s in which firms seek continuously to satisfy the high expectations of customers.
a. production
b. sales
c. marketing concept
d. customer relationship
e. societal marketing
Answer: