Venus Inc. is a telecommunications firm that has been functioning for a number of years
with the same kind of tariffs and offers. The firm still implements off-peak pricing and
works according to the traditional management system. It has not introduced any
innovative tariff plans. This implies that the organization has:
A. a vertically integrated system.
B. no obsolescence.
C. a lack of creativity.
D. a lack of strong competition.
Answer:
In which of the following forms of distribution coverage does the manufacturer attempt
to gain exposure through as many wholesalers and retailers as possible?
A. Focused distribution
B. Intensive distribution
C. Exclusive distribution
D. Selective distribution
Answer:
Tundra Cold Storage Public Warehouse needs to buy a new compressor for one of its
refrigeration units. The company has a regular supplier for replacement compressors,
but this supplier has hiked the prices recently. So, the purchasing agent decides to
switch to a different supplier that is offering the same type of compressor at a cheaper
price. In this case, the purchasing agent is involved in a _____.
A. straight rebuy
B. sell-side auction
C. modified rebuy
D. new task purchase
Answer:
Which of the following perspectives views a channel of distribution as more than a
series of markets or participants extending from production to consumption?
A. Behavioral perspective
B. Technological perspective
C. Systemic perspective
D. Geodemographic perspective
Answer:
The amount of information a consumer has stored in her or his memory about particular
product classes, product forms, brands, models, and ways to purchase them is known as
_____.
A. product knowledge
B. market input
C. product feature
D. social knowledge
Answer:
In which of the following approaches of determining advertising expenditure does the
availability of current revenues set the upper limit of the advertising budget?
A. The per-unit expenditure approach
B. The all-you-can-afford approach
C. The competitive parity approach
D. The research approach
Answer:
World Explorer Cruises advertises that it sells “Cruises for your mind, body, and soul.
Even better, it comes in a pint-sized budget!” What kind of segmentation is the cruise
line using?
A. Demographic segmentation
B. Mass market segmentation
C. Geographic segmentation
D. Benefit segmentation
Answer:
Jenna sells ice creams at the beach each summer. Each bar of ice cream costs her 20¢.
She adds on an additional 20¢ to each bar to pay for electricity for the freezer,
napkins, and her time, finally selling her ice creams at 40¢ a bar. In this scenario, Jena
uses _____ pricing.
A. bundle
B. rate-of-return
C. odd-even
D. markup
Answer:
According to the General Electric Portfolio Model, strategic business units (SBUs) that
are high in both industry attractiveness and business strength are included in the _____.
A. yellow zone
B. blue zone
C. green zone
D. red zone
Answer:
Service products that are totally intangible:
A. do not involve customer participation in a significant way.
B. can be transported and stored.
C. are generally nonperishable.
D. are usually exchanged directly from producer to user.
Answer:
Which of the following is most likely to comprise the cooperative environment of a
firm?
A. A rival firm
B. A non-profit organization that the firm donates funds to
C. A government that is imposing restrictions on trade and commerce
D. A supplier who has been chosen as the firm’s single source
Answer:
The mission statement of a company should primarily have a(n) _____.
A. product focus
B. external focus
C. internal focus
D. selling focus
Answer:
Which of the following statements is true about product quality and value?
A. The terms quality and value are synonymous in the context of product management.
B. Quality encompasses the tangible aspects of a product while value encompasses the
intangible aspects of a product.
C. The level of quality and value a firm’s products have cannot be measured against
external standards.
D. The value of a product encompasses not only the quality of the product but also its
price.
Answer:
The owner of a bookstore in a college town notices that the demand for certain
textbooks peaks during certain times of the year. She assumes that these peaks coincide
with the beginning of semesters when professors recommend these books to the
students. She decides to estimate the future sales of these textbooks by measuring the
relationship between the sales of these books and the announcement of courses that
recommend them. Which of the following methods of sales forecasting is she using?
A. Jury of executive opinion method
B. Sales force composite method
C. Time-series analysis
D. Correlation analysis
Answer:
If a firm chooses to succeed by building long-term relationships with the firm’s
customers by offering either the best price, best product, or best service, it implies that
the firm’s organizational strategy is:
A. based on competitive parity.
B. based on value.
C. based on products and markets.
D. based on selling.
Answer:
_____ typically compete with other retailers on the basis of offering lower prices on
products in their large assortments.
A. Warehouse clubs
B. Convenience stores
C. Department stores
D. Supermarkets
Answer:
The increasing speed of technological change is associated with which of the following
external factors?
A. Economic factors
B. Environmental factors
C. Market factors
D. Competitive factors
Answer: