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The ________ prohibits monopolies and activities (price-fixing, predatory pricing) that
restrain trade or competition in interstate commerce.
A) Sherman Antitrust Act
B) Lanham Trademark Act
C) Fair Packaging and Labeling Act
D) CAN-SPAM Act
E) Magnuson-Moss Warranty Act
Answer:
Laws are passed to define and prevent unfair competition primarily because ________.
A) business executives tend to favor pure monopolies
B) businesses sometimes try to neutralize threatening firms
C) governments in free market economies tend to nationalize ailing firms
D) private lobbying hurts the interests of national and state governments
E) most multinational entities in advanced economies are averse to invest in emerging
markets
Answer:
In 2011, the fixed costs of a company were $500,000, and its variable costs equaled
$150,000. In 2010, the company made an annual profit of $200,000. It has been
predicted that, despite a steady growth, the company's variable costs will likely equal
$300,000 by 2013. The total costs of the company in 2011 were ________.
A) $350,000
B) $450,000
C) $650,000
D) $800,000
E) $950,000
Answer:
Papillon, a popular retailer of chic women's clothing, segments its market according to
consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting
its market.
A) geographic
B) psychographic
C) benefit
D) age and life-cycle
E) occasion
Answer:
Which of the following is most likely true with regard to people's views of
organizations in contemporary America?
A) In the American workplace, there has been an overall increase in organizational
loyalty.
B) Most Americans are confident in their employers and are unlikely to switch jobs as
frequently as in the past.
C) The past two decades have seen a sharp decrease in confidence in and loyalty toward
America's business organizations.
D) Most U.S. workers view work as a source of personal satisfaction and organizational
pride.
E) In the last decade, corporate scandals and layoffs had little impact on people's
confidence in U.S. firms.
Answer:
Apple's iPod has been called "one of the greatest consumer electronics hits of all time."
iPods have been sold in huge numbers, and Apple captures a large share of the music
player market. This success has attracted many large, resourceful competitors. The iPod
is in the ________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption
Answer:
Which of the following best describes a similarity between Costco and Walmart?
A) Both are warehouse clubs.
B) Both target the same affluent market.
C) Both are specialty stores.
D) Both use everyday low pricing.
E) Both are examples of merchant wholesalers.
Answer:
Price discrimination may be used to match competition as long as the strategy is
temporary, localized, and ________.
A) defensive
B) offensive
C) publicized
D) private
E) uniform across channels
Answer:
Setting prices below cost, threatening to cut off business with suppliers, and
discouraging the purchase of a competitor's products are all examples of ________.
A) oligopolistic competition
B) social costs
C) predatory competition
D) acquisitions
E) cultural pollution
Answer:
Recently, a class-action lawsuit was brought against BigBurger, a fast food chain,
charging that its food has contributed to the nationwide obesity epidemic. The suit was
eventually dismissed, but many critics continue to point out the health dangers of
typical "fast food" menu items. These critics are most likely concerned that the fast food
industry has used ________.
A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products
Answer:
________ involves creating a Web site, video, e-mail, mobile message, advertisement,
or other marketing event that is so infectious that customers will seek it out or pass it
along to their friends.
A) Telemarketing
B) Multichannel marketing
C) Integrated marketing
D) Viral marketing
E) Kiosk marketing
Answer:
Which of the following is true of FOB-origin pricing?
A) It is a strategy in which the company charges the same price plus freight to all
customers.
B) It is a costly option for customers who are located near the company.
C) It charges all customers the freight cost from a base city to the customer location.
D) It is an expensive alternative for customers in distant locations.
E) It is a strategy in which the seller absorbs all or part of the freight charges.
Answer:
Which of the following is the most likely circumstance for a company to decide to do
little or no test marketing?
A) when the new product requires a major investment
B) when management lacks confidence in the new product
C) when management lacks confidence in the marketing strategy
D) when the product has no substitutes and is new in its category
E) when the costs of developing and introducing the product are low
Answer:
Renee's, a company selling winter clothing in Chicago, ran a preseason promotion on
some of its fur jackets, offering cash refunds if the snowfall in the customer's market
area turned out to be below average. This exemplifies ________.
A) puffery
B) satisficing
C) prospecting
D) a price pack
E) a rebate
Answer:
People cannot focus on all of the stimuli that surround them each day. A person's
tendency to screen out most of the information is called ________.
A) subliminal retention
B) selective distortion
C) cognitive dissonance
D) selective attention
E) cognitive inertia
Answer:
Iceco Inc., an ice cream manufacturing company, encourages all stakeholders, including
the top management and all employees, to consider individual and community welfare
in their day-to-day decisions. This action undertaken by Iceco reflects ________.
A) environmentalism
B) social responsibility
C) the selling concept
D) partner relationship management
E) marketing myopia
Answer:
In a(n) ________ situation, the buyer wants to revise product specifications, prices,
terms, or suppliers.
A) reverse auction
B) straight rebuy
C) new task
D) modified rebuy
E) absolute auction
Answer:
John has decided to buy a particular smartphone that he saw reviewed online. Which of
the following sources of information has most likely influenced John's purchase
decision?
A) laggards
B) commercial sources
C) public sources
D) personal sources
E) market mavens
Answer:
Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer
Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the
other, The Landing was an immediate hit with weekend lake visitors and local residents
alike. In the summer, boaters parked at the piers and bought all their fishing needs, such
as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter
months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot
coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a full-fledged residential area. Many of the
houses, which were built as cottages in the 1950s and 1960s, were remodeled into
residential homes. By the end of the 1970s, the days of small motorboats and 10
mile-per-hour speed limits were gone; skiing and fast speedboats became the rage.
Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing
could not compete with larger local retailers. He eventually enlarged the sandwich
counter, transforming the bait shop and grocery into a restaurant with a full menu
typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I
still had a summer crowd that relied on us for their fishing needs, but we couldn't
survive a whole year on four months of profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became
upscale. "I could see that people were spending more on their speed boats than what
they had originally paid for their cottages!" Casey exclaimed. Many of the cottages
were inherited by children and grandchildren of the original owners. Once again, the
scene started to change as many of the lake houses were used only as weekend lake
homes. Unlike the previous generation, a vast number of the current owners could
afford to live closer to their jobs while maintaining lake homes. "At this point, business
wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing
into a bar with a lounge area. "The change might have been too drastic," Casey said,
"but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces."
Which of the following generational groups is most likely to represent the present
owners of cottages surrounding Witmer Lake?
A) Baby Boomers
B) Echo Boomers
C) Gen Xers
D) Lost Generation
E) Millennials
Answer:
Which of the following refers to a nonprobability sample in which the researcher finds
and interviews a prescribed number of people in each of several categories?
A) quota sample
B) judgment sample
C) convenience sample
D) stratified random sample
E) simple random sample
Answer:
________ are industrial products.
A) Major appliances
B) Laundry detergents
C) Life insurance policies
D) Office supplies
E) Legal services
Answer:
Using interactive TV can allow consumers to perform all the following tasks during a
company's ad EXCEPT ________.
A) see what other sizes or colors are available
B) identify a nearby location at which the product is available
C) access additional product information
D) order the product
E) send product information to another device
Answer:
An organic farmer has identified three distinct groups that might be interested in his
products: vegetarians, health-conscious individuals, and people identified as
trendsetters who try out new products in the market before others. These three groups
are examples of ________.
A) marketing mixes
B) market segments
C) value propositions
D) market offerings
E) marketing intermediaries
Answer:
Stop-N-Go , 7-Eleven, and Circle K are examples of ________.
A) department stores
B) convenience stores
C) category killers
D) specialty stores
E) supermarkets
Answer:
Most competitors in the music download industry see Apple's iTunes Music Store as a
________ because it created a closed system with mass appeal.
A) good competitor
B) marginal competitor
C) weak competitor
D) bad competitor
E) distant competitor
Answer:
James is looking for a new suit for a job interview. He is shopping at Smith & Jones, a
well-regarded menswear store. While he looks at various styles and uses his smartphone
to scan codes, the menswear shopping app provides him with suggestions for shirts,
ties, and shoes that would complete the ensemble he needs to make a strong, positive
impact at his interview. The ability of the app to provide this information serves to
________.
A) enrich the shopping experience
B) annoy James
C) complicate the shopping experience
D) use James' data plan
E) interrupt the shopping experience
Answer:
Opinion leaders are also referred to as ________.
A) influentials
B) lower uppers
C) innovators
D) lagging adopters
E) surrogate consumers
Answer:
Which of the following is a potential drawback of multibranding?
A) Multibranding tends to decrease brand loyalty.
B) Company resources are likely to be concentrated on a single brand.
C) Multibranding curbs the growth opportunities of established brands.
D) Each brand might obtain only a small market share, and none may be very
profitable.
E) Multibranding causes companies to refrain from product diversification.
Answer:
Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily
office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get
noticed." This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification
Answer:
Amazon.com and GEICO approach customers via Web sites or mobile apps. This is an
example of ________ marketing.
A) mass
B) niche
C) individual
D) multi-level
E) direct
Answer:
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
Answer:
