Elmo Corp., a manufacturer of personal computers and printers, recently established an
office furniture exporting business. This is an example of ________.
A) niche marketing
B) local marketing
C) diversification
D) product adaptation
E) downsizing
A pharmaceutical company in Utah recently released a new and expensive anti-ulcer
drug in the market. The company justifies the high price of the drug by claiming that it
is highly effective for treating all kinds of ulcers. The company also claims that the new
drug will help bring down the need for invasive surgeries, an additional benefit for
patients. Which of the following pricing strategies is the pharmaceutical company most
likely using in this instance?
A) target pricing
B) markup pricing
C) cost-based pricing
D) value-based pricing
E) break-even pricing
Consumer information provider Nielsen uses a life-stage segmentation system that
places U.S. households into one of 66 different life-stage groups. According to Nielsen’s
groups, which of the following refers to the group consisting of hip, single
twenty-somethings who are politically liberal, listen to alternative music, and enjoy
lively nightlife?
A) Striving Singles
B) Young Achievers
C) Bohemian Mix
D) Young Influentials
E) Young Digerati
Which of the following is NOT an element of the marketing mix?
A) place
B) purchase
C) product
D) price
E) promotion
The management of two Panizza restaurants has an ongoing disagreement over the
discount rate given to students from the local high school. This is an example of
________ conflict.
A) intensive
B) selective
C) exclusive
D) horizontal
E) vertical
JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm
wants to know how consumers will perceive the new product. The firm is concerned
with the product ________.
A) idea
B) displacement
C) image
D) activation
E) placement
The “bottom of the pyramid” refers to ________.
A) the world’s poorest consumers
B) the middle classes of Brazil, Russia, India, and China
C) a market with little or no purchasing power
D) people with easy access to luxury goods
E) the middle class of high-income countries
The ________ was established by the Direct Marketing Association.
A) Privacy Promise to American Consumers
B) Trusted Email Open Standard
C) Children’s Online Privacy Protection Act
D) CAN-SPAM legislation
E) Do Not Call Registry
The perceived value of different product offers can be reasonably assessed by
________.
A) conducting a SWOT analysis
B) preparing demand curves
C) conducting surveys and experiments
D) collecting data about competitors’ offers
E) setting a benchmark for product quality
Which of the following is true of shipping goods via water transportation?
A) Water transportation is an efficient way to ship perishable merchandise over long
distances.
B) Water carriers are highly flexible in their routing and time schedules.
C) Water transportation provides in-transit services, such as the processing of goods en
route.
D) Water transportation is ideal when time is short and speed is needed.
E) Water transportation is the slowest mode of transportation and the most affected by
the weather.
Refer to the scenario below to answer the following question.
Essential-Beauty is a rapidly growing firm that manufactures women’s makeup,
perfumes, and nail-care products. The company has established itself as a high-end
cosmetic product brand available at most national drug stores. In the past, almost all of
the advertising for Essential-Beauty has been in women’s fashion magazines.
The firm is now launching a new line of skin care products, ranging from facial
cleansers to body lotion. These products are designed to be marketed to a broader
audience, so the marketing team is exploring the effectiveness of different promotional
mixes.
Before deciding to launch the new line of products, Essential-Beauty conducted
extensive market research to make sure the products were optimally positioned. A
complete marketing plan including mobile advertising, magazine advertising, event
sponsorship, and sales promotions was established long before the products themselves
were ready for market. In this case, Essential-Beauty was using ________.
A) cost leadership
B) entrepreneurial marketing
C) intrepreneurial marketing
D) formulated marketing
E) operational excellence
If a consumer’s drive is strong and a satisfying product is near at hand, the consumer is
likely to purchase the product at that time. If not, the consumer may store the need in
memory or undertake ________.
A) consumer ethnocentrism
B) buyer’s remorse
C) a need recognition
D) an information search
E) cognitive dissonance
Which of the following best explains why companies are adopting the team selling
approach to service large, complex accounts?
A) Products have become too complicated for one salesperson to handle a large
company’s needs.
B) Customers prefer dealing with many salespeople rather than one sales representative.
C) Job rotation, an integral part of team selling, keeps workers motivated and boosts
their morale.
D) Team selling facilitates the evaluation of individual contributions.
E) With team selling, companies are not required to train the outside sales force any
longer.
Which of the following is true about the sales force of a company?
A) Salespeople represent customers to the company and manage the buyer-seller
relationship.
B) Salespeople represent workers’ interests to upper management.
C) The primary responsibility of a sales force is to formulate operational strategies.
D) The sales force is responsible for product development and product strategy.
E) The sales force oversees the auditing process and recovers money from defaulting
customers.
Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery
stores across the country. The chain then makes the plasticine available to end
consumers. This is an example of ________.
A) a direct marketing channel
B) intensive distribution
C) an indirect marketing channel
D) disintermediation
E) extensive distribution
Which of the following conditions would enable higher market share to produce higher
profits?
A) when unit costs drop as market share increases
B) when unit costs increase as market share increases
C) when production volume drops as market share increases
D) when production volume remains unaltered as market share increases
E) when the company fails to break even
Which of the following companies uses captive product pricing?
A) Photo Genie, which sells inexpensive cameras that run only on their own expensive
batteries
B) Tune Zone, which launched a range of mp3 player models, each priced according to
its features
C) Penguin’s Parlor, which offers customers a 20-percent discount on their birthdays
D) Sportsprint, which prices sports equipment according to customer evaluations
E) Burger Den, whose combo meals are priced lower than its individual components
sold together
In the 1950s, Americans made a massive exit ________.
A) from the South to the Northeast
B) from the West to the Midwest
C) to foreign countries
D) from the cities to the suburbs
E) from the coastal towns to the cities
________ are wholesalers who serve grocery and drug retailers, mostly in nonfood
items. They price the goods, keep them fresh, set up point-of-purchase displays, and
keep inventory records.
A) Purchasing agents
B) Rack jobbers
C) Drop shippers
D) Cash-and-carry wholesalers
E) Manufacturers’ agents
Buyers with low sales resistance can often be tempted by all the following common
features of infomercials EXCEPT ________.
A) elaborately staged demonstrations
B) “while they last” time limitations
C) free shipping
D) smooth-talking hosts
E) claims of drastic price reductions
Which of the following is an off-price retailer that sells a limited selection of
brand-name grocery items, appliances, clothing, and other goods at deep discounts to
members who pay annual membership fees?
A) warehouse club
B) service retailer
C) convenience store
D) hypermarket
E) superstore
The marketing concept takes a(n) ________. It starts with a well-defined market,
focuses on customer needs, and integrates all the marketing activities that affect
customers.
A) outside-in perspective
B) product-centered make-and-sell philosophy
C) inside-out perspective
D) consumer-generated marketing approach
E) telling-and-selling approach
Uptown-Clean Crew is a company that provides house-cleaning services in major urban
and suburban areas. Marketers at Uptown-Clean Crew developed a short, humorous
video promoting the company’s services and posted it online. Soon the video was a rage
as customers who saw the video found it hilarious and they passed it on to their friends
and colleagues calling it the “Uptown comedy.” Which form of marketing is illustrated
from this scenario?
A) telemarketing
B) viral marketing
C) integrated marketing
D) multichannel marketing
E) kiosk marketing