Through ________ activities, a firm gathers and analyzes publicly available
information about rivals.
A) economic infrastructure
B) competitive intelligence
C) demographic
D) perfect competition
E) business cycle
Which of the following is an illegal sales technique?
A) retailtainment
B) a party plan system
C) a multilevel network
D) a pyramid scheme
E) off-price retailing
Today’s consumers are increasingly getting information from one another rather than
from the original source. This new communication landscape is referred to as
________.
A) the groundswell
B) evangelist marketing
C) integrated marketing communications
D) stealth marketing
E) the infiltration
The ________ for a guest paying for a night’s stay at a hotel is rest and sleep.
A) generic product
B) core product
C) value-deliverable product
D) augmented product
E) actual product
In which stage of the product life cycle will promotional expenditures be especially
high in an attempt to create consumer awareness?
A) product development
B) introduction
C) decline
D) maturity
E) youth
Worthington Farm raises chickens. For years, it has used wooden coops to haul its
poultry to market. When Bob Worthington went to reuse some of his coops, he noticed
many of them could not be sufficiently cleaned for reuse and ought to be replaced.
Worthington was at which stage of the business buying process?
A) problem recognition
B) vendor analysis
C) information search
D) information evaluation
E) product selection
The owner of a pet grooming salon wants to calculate customer equity. Which of the
following would be a step the owner of this pet grooming salon should complete?
A) Compare investments made by the salon owner in acquiring the customer to the total
amount of purchases made by the customer.
B) Compare investments made by the salon owner to retain this customer to the total
amount of taxes the salon owner pays.
C) Ask the customer if she is planning on getting any new pets.
D) Investigate how many other pet grooming salons are within five miles to determine
the likelihood of this pet owner returning to this salon.
E) Determine the age of the pet to estimate how much longer this customer may need
the services of the salon.
Four characteristics are used to differentiate services from goods. Which of the
following is NOT one of those characteristics?
A) intangibility
B) perishability
C) variability
D) personalization
E) inseparability
The founder of the upscale shoe company Harry’s Shoes Ltd. persuaded actors to wear
prototypes of his company’s shoes to the Oscars. This shoe company believed that the
actors would be ________ for the company.
A) opinion leaders
B) heuristics
C) mass-classes
D) stewards
E) subcultures
Which three consumer motivations are key to the VALS™ system?
A) faith, family, and finances
B) age, gender, and ethnicity
C) place of usage, time of usage, and frequency of usage
D) ideals, achievement, and self-expression
E) income, education, and geographic location
Which of the following are manufacturer-owned facilities that do not carry inventory
but provide selling functions for the manufacturer in a specific geographic area?
A) commission merchandise marts
B) merchandise brokerages
C) sales offices
D) sales branches
E) manufacturers’ showrooms
Which of the following statements about magazines as an advertising medium is true?
A) Magazines have long lead times and deadlines that can reduce flexibility.
B) Magazines have not benefited from advances in communication technologies.
C) Magazines typically use a mass marketing strategy.
D) Magazines do not accept local advertising.
E) Magazines have poor reproduction quality of images.
Which of the following best defines demographics?
A) statistics that can be used to segment populations on the basis of what people do
with a product
B) statistics that can be used to segment populations on the basis of when people use a
product
C) qualitative data that can be used to explain why seemingly homogeneous consumer
groups do not share core characteristics
D) statistics that can be used to segment populations on the basis of shared attitudes,
opinions, and interests
E) statistics that measure observable aspects of a population
Shoplifting, sweethearting, and retail borrowing are all problems that contribute to
________.
A) off-price retailing
B) shrinkage
C) pyramid schemes
D) understored trade areas
E) pop-up retailing
Which approach to measuring brand equity focuses on the ability of a brand to charge a
higher price than the price charged by an unbranded equivalent?
A) revenue premium metrics
B) financial market metrics
C) product-market outcomes metrics
D) equity-identity metrics
E) customer mind-set metrics
________ occurs when two or more goods are necessary to create a product.
A) Inelastic demand
B) Fluctuating demand
C) Joint demand
D) Elastic demand
E) Economic demand
Marketers use ________ when they want to determine if a change in one thing is
responsible for a change in something else.
A) ethnography
B) predictive techniques
C) descriptive research
D) causal research
E) exploratory research
Which of the following statements about department stores is true?
A) Department stores are more successful in America today than they have ever been.
B) Department stores typically offer shallow and narrow assortments.
C) Department stores are more popular in America than they are abroad.
D) Department stores are typically self-service.
E) Department stores were a dominant type of American retailer in the first half of the
twentieth century.
________ are the per-unit costs of production that will fluctuate depending on how
many units or individual products a firm produces.
A) Fixed costs
B) Variable costs
C) Average fixed costs
D) Marginal costs
E) Everyday costs
What is the most logical explanation that retailers carry private-label brands?
A) to eliminate the need for competitive advantages
B) to encourage transaction marketing
C) to support trade promotions
D) to earn more profit
E) to prevent sales cannibalization
A ________ sample is a type of probability sample in which a researcher divides the
population into segments that relate to the study’s topic.
A) systematic
B) convenience
C) stratified
D) quota
E) simple random
A web site is full of games, activities, music, and stories that appeal to children of all
ages. Before a parent commits to paying the annual membership fee to gain access to
the site, she can register for one free month of use. By accepting the free month’s usage,
potential adopters move into the ________ stage.
A) interest
B) awareness
C) trial
D) confirmation
E) evaluation
Prior to the development of the cardiac stent, surgeons used balloons to clear obstructed
heart vessels, but there was no way to ensure the vessels would stay open. The stent is a
tiny metal scaffold that props open the formerly obstructed blood vessel and keeps it
from becoming obstructed again. Surgeons who use the stent had to engage in a great
deal of learning to understand its use and its value in patient care. There was nothing
like the stent on the market when it first appeared. The cardiac stent is an example of a
________.
A) dynamically continuous innovation
B) nonradical innovation
C) competitive innovation
D) continuous innovation
E) discontinuous innovation
________ is the assignment of a product’s value, or the amount the consumer must
exchange to receive the offering.
A) Promotion
B) Price
C) Benefit
D) Need
E) Utility
________ is the process of selecting respondents for a survey.
A) Sampling
B) Prospecting
C) Modeling
D) Surveying
E) Representation
Venture teams focus exclusively on which of the following?
A) products in the maturity stage of the product life cycle
B) products in the growth stage of the product life cycle
C) relationships with large, important customers
D) the development of a new product
E) the promotional plan for a new product
In most cases, which of the following is true about a least developed country (LDC)?
A) It has an economy based on agriculture.
B) It is landlocked.
C) It has a viable middle class.
D) It has high literacy levels.
E) It has an advanced economic infrastructure.
Which of the following is the lowest level of needs on Maslow’s hierarchy of needs?
A) social needs
B) ego needs
C) physiological needs
D) self-actualization needs
E) belongingness needs
________ is the process by which people select, organize, and interpret information
from the outside world.
A) Perception
B) Learning
C) Attention
D) Motivation
E) Cognition
Which of the following is true of institutional advertising?
A) It is also known as public-service advertising.
B) It describes products as customer services.
C) It is primarily used to support sales promotion activities.
D) It promotes the activities or point of view of an organization.
E) It is used only by non-profit and government organizations.
Which of the following is NOT an example of a service encounter?
A) a nurse listening to a patient’s heart rate
B) a potential customer using a search engine to locate a business
C) a customer checking into a hotel
D) a student attending a tutoring session
E) a mechanic telling a customer what is wrong with his car