Book Title
A Preface to Marketing Management 14th Edition

CE 111 Midterm

October 29, 2015
Which of the following is an ethical and legal concern associated with personal
A. Misrepresenting product health
B. Encouraging materialism and excessive consumption
C. Reinforcing unfavorable ethnic or racial stereotypes
D. Using unauthorized mailing lists to reach consumers
Thinkers, according to the VALSâ„¢ model, are motivated primarily by _____.
A. self-expression
B. ideals
C. achievement
D. image
Which of the following statements is true of organizational objectives?
A. Organizational objectives should reflect the organization's finances, rather than its
commitment to the customers.
B. Organizational objectives are not considered to be dominant necessities to carry out
the organizational mission.
C. Organizational objectives are specific, measurable, action commitments on the part
of the organization.
D. Organizational objectives are distilled to arrive at a specific and achievable
organization mission.
Which of the following is an example of a direct channel of distribution?
A. Wholesaling
B. Catalog selling
C. Agent selling
D. Retailing
Hecter & Gable Inc. marketed three brands of fabric softeners called Charms, White
Cloud, and Lavender Days in the early 1990s. The industry for fabric softeners and
allied products was typically described as a low-growth industry. In 1993, Hecter &
Gable spent $3.1 million to advertise Charms and was rewarded with sales of over $312
million. In that same year, it spent nearly $6 million marketing White Cloud, but the
product had disappointing sales of less than $63 million. Lavender Days, with hardly
any promotion at all, had $4.6 million in sales. According to the General Electric
Portfolio Model, which of the following statements about these three products best
describes them?
A. Charms was in the red zone, while White Cloud and Lavender Days were in the
green zone.
B. In spite of the difference in sales, both White Cloud and Charms were in the yellow
C. Due to the low market growth in the toilet paper industry, Charms was low in
business strength.
D. White Cloud and Lavender Days were low in industry attractiveness and in business
strength and were in the red zone.
The first step in the research process is:
A. to collect data and label data sets.
B. to determine the appropriate marketing strategy based on findings.
C. to prepare a research report.
D. to determine why the research is needed and what it is to accomplish.
Felicia Inc., a cosmetic company, wants to launch a new perfume called "Zing" with top
notes of bergamot, orange, and cinnamon. When determining the price of the perfume
and its market potential, the company takes into account the number of potential buyers
and their economic strengths. Which of the following factors is Felicia using in
determining the pricing of Zing?
A. Demographic factors
B. Psychological factors
C. Environmental influences
D. Behavioral factors
What are the primary demands of lower Americans?
A. Products that allow them to emulate upper Americans
B. Products that are recommended by media experts
C. Cost-efficient and popular products
D. Food, clothing, and other staples
Which of the following is a type of psychological pricing strategy?
A. Cost-plus pricing
B. Rate-of-return pricing
C. Markup pricing
D. Bundle pricing
With regard to the objectives of advertising, identify the most accurate statement.
A. Advertising is not justified on the basis of the revenue it generates.
B. The advertising outlays should be increased in every market and medium up to the
point where the additional cost of gaining more business exceeds the incremental
C. The ultimate goal of the business advertiser is to make sales and profits.
D. Advertising is not subject to the law of diminishing returns.
The most common method of establishing quotas for territories is to:
A. relate sales to forecasted sales potential.
B. discount activity quotas independently.
C. evaluate salespersons' performances without controlling their efforts.
D. assign quotas only for dollar sales but not for a selling function.
The primary role of all marketing intermediaries is to:
A. bring supply and demand together in an efficient and orderly fashion.
B. create timely demand for products that a manufacturer produces.
C. produce goods and services efficiently to meet the demands of customers.
D. prevent customers from making poor buying decisions.
Which of the following is an example of an experiential source of information for
making a consumer purchase decision?
A. Trying on various swimsuits
B. An eye-catching sign in a store display
C. Reading about a product's quality in Consumer Reports
D. An advertisement in the midst of several movie trailers
Markup pricing is a variation of cost-oriented pricing in which:
A. the price is determined by adding a desired rate of return on investment to total
B. a percentage is added to the retailer's invoice price to determine the final selling
price of the product.
C. the costs of producing a product or completing a project are totaled and a profit
amount or percentage is added on.
D. a breakeven analysis is performed for expected production and sales levels and a rate
of return is added on.
One of the defensive goals multinational firms seek to achieve when investing in other
countries is to:
A. increase long-term growth and profit prospects.
B. maximize total sales revenue.
C. take advantage of economies of scale.
D. preempt competitors' global moves.

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