Which of the following statements about the impact of international business on the
U.S. economy is NOT true?
a. The United States exports about 13 percent of its industrial production.
b. More than 10 million Americans hold jobs that are supported by exports.
c. Every U.S. state has realized net employment gains directly attributed to foreign
trade.
d. The United States depends more on international commerce than do any other
countries.
e. The United States exports over $2.1 trillion in goods and services each year.
Answer:
A cooperative agreement between business firms is called a:
a. shared capital contract.
b. global partner development strategy.
c. strategic alliance.
d. joint contract.
e. comarketing effort.
Answer:
Which of the following would be an example of ‘social” CRM?
a. Placing a phone call to a local department store
b. Leaving a comment on a company’s blog
c. Mailing a survey card back to an organization
d. Telling a friend about your experience with an online retailer
e. All of the above are examples of ‘social” CRM
Answer:
TheRitzyCanine
The Ritzy Canine Carriage House looks like several other Manhattan boutique hotels.
The lobby features a crystal chandelier, brocade-patterned wallpaper, gold-framed
mirrors, and antique chairs. Room service and salon service are available as well as
exercise facilities. There is also a masseuse on staff. The Ritzy Canine is a high-end
doggy “hotel” and ‘spa” where dogs are the only guests, and they are lavishly cared for.
The $175anight Windsor Suite even has a DVD player. Without such extras, a one-day
visit will cost $40 to $50, depending on the size of the dog.
Refer to The Ritzy Canine. Before leaving a dog at The Ritzy Canine, its owner would
more than likely inspect the facilities and use ____ qualities to evaluate the
establishment.
a. experience
b. credence
c. investigative
d. search
e. standardized
Answer:
The price of one country’s currency in terms of another country’s currency is called the
conversion price.
a. True
b. False
Answer:
When a consumer is purchasing an unfamiliar, expensive product or an infrequently
bought item, he or she is practicing:
a. extensive decision making
b. cognitive harmonizing
c. limited problem solving
d. strategic behavior
e. stimulus discrimination
Answer:
It is considered inefficient to use concept tests during the idea screening stage of the
new-product development process.
a. True
b. False
Answer:
The process that creates changes in behavior is called:
a. selective adaptation.
b. learning.
c. involvement manipulation.
d. attitude adjustment.
e. behavior normalization.
Answer:
Which type of survey question is a closedended question designed to measure the
intensity of a respondent’s answer?
a. A semantic differential
b. A scaled-response question
c. An interval-based question
d. A sampling frame question
e. A bounded-frame question
Answer:
Chaz loves to play a Disney online pirate game in which he gets to create a pirate by
choosing hair color, skin color, clothing, and physical features. Then he gets to choose
from a variety of quests and can sail a ship, dig for treasure, fight skeleton pirates, or
fight the British Navy. This game provides what element of value?
a. Offering products that perform
b. Earning of trust
c. Avoiding unrealistic pricing
d. Giving facts
e. Co-creation
Answer:
The Uruguay Round of trade negotiations dramatically increased trade barriers
worldwide.
a. True
b. False
Answer:
____ is marketing communication activities in which a short-term incentive is offered
to induce the purchase of a particular good or service.
a. Publicity
b. Sales promotion
c. Promotion
d. Advertising
e. Motivation selling
Answer:
Niche competitive advantages are quite common.
a. True
b. False
Answer:
Your Memory Lane produces custommade art prints that include graphics and icons to
celebrate life’s special moments. For example, on his wedding anniversary, David had
an art print produced that celebrated highlights of his ten years with his wife, Kathy.
Suppose that Your Memory Lane sells the custom artwork for $500. It estimates its
average variable costs to be $200 per unit produced. It figures its fixed costs to be
$900,000 per year. How many prints does it have to sell to break even?
a. 2,000 prints
b. 1,200 prints
c. 3,000 prints
d. 2,500 prints
e. 6,000 prints
Answer:
The marketing campaign for Alpo dog food uses posters in veterinarians’ offices, radio
and television ads, and a Web site to promote benefits of the dog food. In terms of the
communication process, Alpo uses several different:
a. source of feedback.
b. channels.
c. encoders.
d. decoders.
e. noise interrupters.
Answer:
DeltaFaucet Company
Masco is the name of a well-recognized company in the construction industry. It
produces cabinetry, furniture, lighting, and plumbing fixtures for the upper-end
homeowner and builder. One of the divisions of Masco is the Delta Faucet Company,
which is the leader in the faucet industry. Delta was founded in 1955. Over the decades,
it has developed a legacy based on well-crafted, high-quality products. Since the 1970s,
Delta has focused its energies on building loyalty with the builder marketplace.
Research in 2002 showed that while builders respected the Delta faucet for its quality,
durability, and dependability, household consumers were not enamored with Delta
products. Due to the number of new magazines and television programs devoted to
home style, homeowners wanted faucets that were chic and stylish. This was not the
image of the Delta faucet. To change its image, Delta began a marketing program in
which it committed itself to developing new products to appeal to homeowners. It
adopted a new slogan”””Beautifully Engineered.”
Refer to Delta Faucet Company. Delta would most likely have gathered the information
about how homeowners perceive its products through the use of a(n):
a. break-even analysis
b. correlation analysis
c. sales potential assessment
d. situation analysis
e. economic forecast
Answer:
Coca-Cola launched a new Black History television commercial on BET to coincide
with the Martin Luther King Jr. holiday. The ad is just one element of a strategy for
connecting with African American consumers. CocaCola’s segmentation plan for this
promotional campaign is based on ______segmentation.
a. demographic
b. sociocultural attributes
c. psychographic
d. usage rate
e. geodemographic
Answer:
A movie studio wants to give fans a sneak peek of the trailer for an upcoming film.
Which of the following would be the best platform for the studio to use?
a. Picasa
b. Photobucket
c. YouTube
d. Imgur
e. TwitPic
Answer:
Patch Products is an Australian company that has given permission to several Latin
American companies to manufacture and market its patented Spanish/English children’s
frame tray puzzles. Because Patch uses licensing as its global marketing strategy, it:
a. must only pay a minimal royalty to the licensed companies.
b. cannot control how the puzzles are manufactured.
c. has involved itself in the global marketing strategy that gives it the greatest amount
of control.
d. cannot have any control over how the puzzles are promoted or distributed.
e. chose a method of global marketing that created minimal risk.
Answer:
Most people recognize Crayola as a brand of crayon, but Crayola also markets paints,
chalk, pencils, markers, toys, coloring books, clothing, and even software. All these
products are part of Crayola’s:
a. marketing equity.
b. product line.
c. product mix.
d. line depth.
e. product modification.
Answer:
Danny is a 19-year-old college student and avid gamer. Based on his demographics,
which of the following games is Danny MOST likely to play regularly?
a. Café World
b. Mafia Wars
c. Bejeweled Blitz
d. Farmville
e. EverQuest Next
Answer:
A price tactic that requires the purchaser to absorb the freight costs from the shipping
point is called ____ . In this case, the farther buyers are from sellers, the more they pay,
because transportation costs generally increase with the distance merchandise is
shipped.
a. basing-point pricing
b. zone pricing
c. uniform delivered pricing
d. freight absorption pricing
e. FOB origin pricing
Answer:
Cover Girl and Revlon are both recognized as leading manufacturers of cosmetics. Both
companies have recently introduced cosmetics for the over-50 woman who does not
have the same concerns as a 20-year-old. The introductions of these cosmetics are
examples of the implementation of a strategy.
a. portfolio breadth expansion
b. product portfolio width adjustment
c. product item contraction
d. product line extension
e. repositioned marketing mix
Answer:
While looking at the DVDs at Target, Tee tried to remember the name of the action
movie starring Harrison Ford as an archeologist so he could buy the DVD. Which step
of the consumer decision-making process is this?
a. Antecedent search
b. Need recognition
c. External information search
d. Alternative evaluation
e. Internal information search
Answer:
HallmarkCards
Hallmark Cards is just one of thousands of companies that have a strong online
presence. Hallmark’s Twitter
account and Facebook page allow the company to talk directly to customers and also
lets the customers talk to each other. Hallmark Social Calendar is a Facebook app that
helps users stay on top of special events like birthdays and anniversaries; customers can
use the app to send electronic cards to their friends’ PCs and cell phones. In addition,
Hallmark operates several blogs, where it shares anecdotes about the company and
often solicits opinions on various aspects of greeting card design and on ideas for gifts
and their pricing. The company encourages Facebook fans to talk about their lifestyles
and even upload photos of themselves so that it can better understand its market. The
conversations consumers have with each other often result in interesting insights, such
as gift ideas for specific occasions and the prices they are willing to pay for different
gifts.
Refer to Hallmark Cards. Kimberlee is a big fan of Hallmark products. She often
uploads photos of her Hallmark ornament collection to the company’s Facebook page,
she reads and comments on Hallmark blog posts, and she loves chatting with and
tweeting other Hallmark lovers. What type of social media user is Kimberlee?
a. A critic
b. A joiner
c. An inactive
d. A noob
e. A collector
Answer:
A(n) ____ is a continuing relationship in which an individual or business grants
business rights to operate or sell a product to another individual or business.
a. leasing contract
b. alliance for profit
c. brokered partnership
d. franchise
e. countertrade
Answer:
Items that are ready for assembly and retain their identities when incorporated into
another product are called component parts.
a. True
b. False
Answer:
Market share is a company’s product sales as a percentage of its total sales for that
industry.
a. True
b. False
Answer:
Merissa Champlain designs and sells clothes for young working women. Her marketing
managers recently told her
that she”ll be in financial trouble unless she starts designing clothes suited to Gen Yers.
Why is this?
a. Gen Yers are picky.
b. Gen Yers are more multicultural.
c. Baby boomers provide all of the disposable income for Gen Y members.
d. Demographically, Gen Yers are an extremely large group of consumers.
e. Gen Yers are easily swayed by traditional promotion media.
Answer:
Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets
tourists as they get off the plane in Hawaii. When a tourist shop began selling Pure
Hawaiian Air, it charged $5 per bottle and could not keep up with the demand. It has
since raised the price to $7. Now the shop is still selling all the bottles of Pure Hawaiian
Air it carries, but the owner is not forced to reorder on a daily basis. The $7 price is
probably a(n):
a. supply schedule.
b. symmetrical price.
c. price equilibrium.
d. inventory equalizer.
e. inelastic price.
Answer:
James recently went to a new health clinic because he had a sore throat that wouldn”t
go away. He was not familiar with this clinic and was a bit surprised when the doctor
came in and was wearing blue jeans, a flannel shirt, and tennis shoes. The doctor and
nurse took proper care of James, but it seemed strange to him that the doctor was
dressed that way. Which component of service quality does this illustrate?
a. Reliability
b. Responsiveness
c. Assurance
d. Empathy
e. Tangibles
Answer:
Personal selling becomes a more important promotional tool as product value and
complexity and increase.
a. True
b. False
Answer:
Breyer”sIceCream
One hot August afternoon, as Nelson is driving home from work, he sees a billboard for
Breyer’s Ice Cream. He remembers that he is out of ice cream at home, and thinks it
would be really great to have a nice, cold bowl of ice cream on such a hot day. So he
stops into the convenience store near his home, heads straight for the dairy case, and
picks up a half-gallon of strawberry ice cream.
Refer to Breyer’s Ice Cream. When Nelson realized he was out of ice cream at home,
which stage of the
consumer decision-making process was this?
a. Evaluation of alternatives
b. Information search
c. Purchase
d. Postpurchase behavior
e. Need recognition
Answer:
Uniform delivered pricing:
a. creates no geographic price discrimination.
b. is sometimes called “postage stamp” pricing.
c. is prevalent in the steel, cement, corn oil, and lead industries.
d. is common where freight costs are a large portion of total costs.
e. is calculated from regional base points.
Answer:
Demography is the study of people’s vital statistics such as age and location.
a. True
b. False
Answer: