Figure 1.
Consider Figure 1. above. Suppose a manufacturer quotes price in the following form:
List price$100 less 30/10/5. What does “C” represent?
a. the wholesaler’s trade discount
b. the retailer’s trade discount
c. the jobber’s trade discount
d. the manufacturer’s trade discount
e. the manufacturer’s markup
Answer:
In which stage in the new-product process would a firm use both a SWOT analysis and
environmental scanning to assess its strengths and weaknesses relative to the trends it
identifies as opportunities or threats?
a. idea generation
b. screening and evaluation
c. new-product strategy development
d. business analysis
e. development
Answer:
The American Marketing Association Statement of Ethics identifies six key aspirational
ethical values. These include: _________, responsibility, fairness, respect, openness,
and citizenship.
a. diversity
b. integrity
c. honesty
d. perseverance
e. charity
Answer:
Convenience refers to the concept that
a. there should be a minimum of effort on the part of the buyer in doing business with
the seller.
b. all products or services should be available 24 hours a day, 7 days a week, and 365
days a year.
c. all tasks required to make an exchange are the sole responsibility of the seller.
d. an exchange requires equal effort by both the buyer and seller.
e. all logistical services are provided by a supplier network.
Answer:
Which type of contractual vertical marketing system involves small independent
retailers forming an organization that operates a wholesale facility cooperatively?
a. retailer-sponsored cooperative
b. service-sponsored retail system
c. administered cooperative system
d. manufacturer-sponsored cooperative
e. wholesaler-sponsored voluntary chain
Answer:
7-Eleven rebranded 11 of its American stores and one Canadian store as
“Kwik-E-Marts,” selling some real-life versions of products seen in episodes of The
Simpsons, such as Buzz Cola and Krusty-O’s cereal. This form of promotion is referred
to as _________.
a. a product placement
b. product continuity
c. a reverse product placement
d. trade-oriented sales promotion
e. subliminal advertising
Answer:
To a degree, every country engages in some form of protectionism. Over the past 50
years however, this practice has diminished, in large part due to
a. an alignment of nations by ethnicity rather than geographical borders.
b. an increase in population and a decrease in resources.
c. the evolution of mass media.
d. the establishment of GATT.
e. an alignment of nations by political ideology rather than geographical borders.
Answer:
A small business owner was preparing her staff for the upcoming holiday season. Her
women’s apparel retail store had a great yearsales and profits were up 20 percent. In a
meeting with her sales staff before opening the store on Black Friday, the day after
Thanksgiving, she said, “We want to move as much inventory as possible. Not only can
we highlight our holiday items, why don”t we mark down some of our other seasonal
items while people are in a shopping mood?” From this statement, she was concerned
with a __________ goal.
a. profit
b. sales
c. market share
d. customer satisfaction
e. survival
Answer:
Criteria or standards used in evaluating proposed solutions to a problem are referred to
as
a. solution factors.
b. constraints.
c. determinant factors.
d. measures of success.
e. resolution parameters.
Answer:
Mark Zuckerberg is a co-founder of the social networking website called __________.
a. MySpace
b. Groupon
c. LinkedIn
d. Facebook
e. Twitter
Answer:
eHarmony claims to be the world’s most trusted online dating website. Its appeal is to
satisfy consumers’ __________ needs.
a. physiological
b. personal
c. safety
d. social
e. psychological
Answer:
Seven Cycles’ business model includes the Internet, which enables customers to
collaborate on the bike design using the company’s __________ fitting system that
considers the rider’s size, aspirations, and riding habits.
a. Rider Kit
b. Cyclo Kit
c. Custom Kit
d. Proviso Kit
e. Seven Fit
Answer:
A market-product grid is a framework to relate
a. total estimated expenses for each product sold to each market segment.
b. total anticipated revenue for each product-market segment combination.
c. total anticipated profit for each product sold to each market segment.
d. the market segments of potential buyers to relative market share compared to the
closest competitor.
e. the market segments of potential buyers to products offered or potential marketing
actions by an organization.
Answer:
The Federal Trade Commission and the Justice Department monitor channel practices
that __________, create monopolies, or otherwise represent unfair methods of
competition under the Sherman Act (1890) and the Clayton Act (1914).
a. suggest patent infringement
b. restrain competition
c. connect channel members
d. use coercive or suggestive advertising
e. manipulate public opinion
Answer:
The identification that a firm has legally registered its brand name or trade name so the
firm has its exclusive use, thereby preventing others from using it, is referred to as a
__________.
a. brand name
b. copyright
c. trademark
d. label
e. trade name
Answer:
Figure 1.: Question 7
Consider Figure 1.: Question 7 above, which is part of a Wendy’s survey that assessed
fast-food restaurant preferences among present and prospective consumers. Which of
the following statements MOST LIKELY explains why Question 7 was included in the
questionnaire?
a. Wendy’s wanted to know how many people eat at home while watching TV.
b. Wendy’s wanted to know if billboards and other media types were important sources
of information to consumers when they decide where to eat.
c. Wendy’s wanted to understand how often consumers see flyers.
d. Wendy’s wanted to check newspaper circulation in the cities in which it does
business.
e. Wendy’s wanted to find information about the education level of its customers
according to the relative importance of their information sources.
Answer:
Individuals who exert direct or indirect social influence over others are referred to as
a. decision makers.
b. achievers.
c. innovators.
d. buzz managers.
e. opinion leaders.
Answer:
Which of the following statements about relationship marketing is most accurate?
a. Relationship marketing has a short-term focus: increasing profits for the firm.
b. Relationship marketing begins before and ends after the sale.
c. Relationship marketing is more effective when there is a personal, ongoing
relationship between an organization’s employees and its customers in the selling and
buying organizations.
d. Very few companies today are engaged in relationship marketing.
e. The Internet has allowed marketers to establish personal, “tender-loving care”
relationships with customers.
Answer:
Interactive television with video-on-demand capabilities changes how people watch
television and how consumers access the Internet. This technology requires significant
customer education for most people. What type of product life cycle would be
associated with this product?
a. generalized
b. high-learning
c. low-learning
d. fashion
e. fad
Answer:
Often used interchangeably with “vision” a(n) __________ frequently has an
inspirational theme.
a. point of difference
b. mission statement
c. business definition
d. core value proposition
e. marketing plan
Answer:
More than half of all U.S. households are composed of only one or two persons, so
Aunt Jemima packages meals with only one servingsuch as its Ham & Egg Scramble
and Oatmeal Pancakes. Aunt Jemima is using __________ as the basis to segment its
market.
a. usage rates
b. usage patterns
c. behavior characteristics
d. demographic characteristics
e. psychographic characteristics
Answer:
People to whom an individual looks as a basis for self-appraisal or as a source of
personal standards are referred to as
a. action-oriented consumers.
b. spokespersons.
c. opinion leaders.
d. social classes.
e. reference groups.
Answer:
Spiegel Inc. sold Christmas cards on page two of its holiday retail catalog. Spiegel
designed and printed the cards. Proceeds from the sales of the Christmas cards
purchased through the catalog went to benefit the Starlight Children’s Foundation and
the National Center for Missing and Exploited Children. This is an example of
a. philanthropic marketing.
b. corporate altruism.
c. cause marketing.
d. the marketing concept.
e. societal marketing.
Answer:
A __________ is a nongovernmental organization that serves its customers but does not
have profit as an organizational goal.
a. business firm
b. subchapter S corporation
c. nonprofit agency
d. nonprofit organization
e. cooperative
Answer:
A key to positioning a product or brand effectively is discovering the perceptions of its
potential customers. In determining its positioning in the minds of customers,
companies take four steps: (1) identify the important attributes for the product or brand
class; (2)__________; (3) discover where the company’s product or brand is on these
attributes in the minds of potential customers; and (4) reposition the company’s product
or brand in the minds of potential customers.
a. decide whether to keep or delete the market segment that your product offering
targets
b. identify the competitors’ brands that make up the consideration set
c. discover how target customers rate competing products or brands with respect to
these attributes
d. create a marketing plan based on customers’ perceptions
e. identify market niches that were not previously selected during the market
segmentation process
Answer:
When selecting a brand name, it should (1) suggest product benefits; (2) __________;
(3) fit the company or product image; (4) have no legal or regulatory restrictions; and
(5) be simple and emotional.
a. never have a humorous connotation
b. easy to spell and pronounce
c. not be easily imitated
d. be patented
e. be memorable, distinctive, and positive
Answer:
More than 70 percent of the physicians in the Maricopa County (Arizona) Medical
Society agreed to establish a maximum fee schedule for health services to curb rising
medical costs. All physicians were required to adhere to this schedule as a condition for
membership in the society. The U.S. Supreme Court ruled that this agreement violated
the Sherman Act and represented price fixing. This example illustrates that the
physician’s actions were
a. ethical but illegal.
b. ethical and legal.
c. unethical and illegal.
d. unethical but legal.
e. altruistic but nave.
Answer:
Motorola developed a low-cost cell phone with battery life as long as 500 hours for
rural villagers without regular electricity and an extra-loud volume for use in noisy
markets. This phone, a no-frills design priced at $40, is most likely targeted to people at
the
a. focal point of economic change.
b. pivot point of economic growth.
c. bottom of the pyramid.
d. bottom of the economic pool.
e. edge of global evolution.
Answer:
Wholesalers who have a small warehouse from which they stock their trucks for
distribution to retailers are referred to as __________.
a. cash and carry wholesalers
b. truck jobbers
c. rack jobbers
d. drop shippers
e. manufacturer’s representatives
Answer:
In the __________ stage of the personal selling process, the cultural setting is very
important.
a. presentation
b. prospecting
c. prospecting
d. approach
e. close
Answer: