Tricon was the restaurant division of PepsiCo until it was spun off in 1997. Since then
Tricon has opened 6,000 KFC restaurants abroad. It has 158 restaurants in Indonesia
and more than 500 restaurants in China. All are locally owned and subject to a
contractual agreement that allows the owners to operate the business under the
established KFC brand name and according to specific rules. Tricon is engaged in
a. contract assembly.
b. a joint venture.
c. contract manufacturing.
d. a partnership.
e. franchising.
Answer:
The ability of customers to avail themselves of numerous websites for almost anything
they want, as well as the ability to engage in an electronic dialogue with marketers for
the purpose of making informed decisions are both dimensions of __________, the
second reason consumers shop and buy online.
a. choice
b. communication
c. customization
d. control
e. compatibility
Answer:
A favorable image is affected by the degree of self-disclosure of a person’s thoughts,
feelings, likes, and dislikes. Greater self-disclosure is likely to __________ the
influence on those reached.
a. decrease
b. not affect
c. undermine
d. manipulate
e. increase
Answer:
The search for and qualification of potential customers during the personal selling
process is referred to as the __________ stage.
a. prospecting
b. customer mining
c. lead initiation
d. cold calling
e. gleaning
Answer:
Which of the following statements about consumer demand as a pricing constraint is
most accurate?
a. The number of potential buyers for the product class has little effect on the price a
seller can charge.
b. The number of potential buyers for the product affects the price a seller can charge,
but only if the product is a luxury item.
c. The number of potential buyers for the product affects the price a seller can charge,
but only if the product is a necessity item.
d. The number of potential buyers for the brand affects the price a seller can charge in
the growth stage of a product life cycle, but not in the introductory stage.
e. Whether the item is a luxury or a necessity affects the price a seller can charge.
Answer:
Butler-McDonald, an Indianapolis firm, recycles outdated computers to reclaim
reusable materials such as plastics, copper, zinc, silver, and gold. Butler-McDonald is
implementing
a. salvage marketing.
b. materials transformation.
c. reverse materials handling.
d. reverse logistics.
e. cause-related marketing.
Answer:
Predatory pricing is
a. an arrangement a manufacturer makes with a reseller to handle only its products and
not those of a competitor.
b. the practice of charging different prices to different buyers for goods of like grade
and quality.
c. the practice of charging a very low price for a product with the intent of driving
competitors out of business.
d. a conspiracy among firms to set prices for a product or service.
e. a seller’s requirement that the purchaser of one product must also buy another product
in the line.
Answer:
Pioneering advertisements would MOST likely be used during which stage of the
product life cycle?
a. introductory
b. decline
c. mature
d. harvest
e. growth
Answer:
A product life cycle that results from products that are easily imitated by competitors,
whose benefits are readily understood by consumers, and for which the appropriate
marketing strategy is to broaden distribution quickly is typical for __________
products.
a. high-learning
b. fashion
c. fad
d. low-learning
e. generalized
Answer:
When Andrea visited www.disneystore.com, she looked at several different classic
Winnie the Pooh plush animals before she selected Piglet and Tigger and added them to
her shopping cart. She then went to checkout, where she confirmed that she wanted to
buy the two stuffed animals, typed in her address, and concluded the transaction by
providing her credit card information. In terms of customer experience, this example
describes the __________ website design element.
a. context
b. community
c. content
d. commerce
e. connection
Answer:
You have just purchased a Samsung Galaxy S tablet device. As you head home from the
store, you brood about whether your choice was right or whether you should have
bought an Apple iPad 2 after seeing an ad for it on TV. This is most likely an example
of
a. indecisiveness.
b. cognitive dissonance.
c. postpurchase stress.
d. market anxiety.
e. extended problem solving.
Answer:
Sales promotions where the consumer is offered the product free or at a greatly reduced
price are referred to as
a. deals.
b. rebates.
c. samples.
d. premiums
e. discounts.
Answer:
When developing the advertising program, specifying __________ helps advertisers
with other choices in the process such as selecting media and evaluating a campaign.
a. product or service features
b. time constraints
c. pricing constraints
d. target audiences
e. advertising objectives
Answer:
In the seven Ps of services marketing, the term “process” involves not only “what” gets
created but also
a. “if” it gets created at all.
b. “how” it gets created.
c. “when” it gets created.
d. for “whom” it gets created.
e. “why” it gets created.
Answer:
Which of the following statements about how women buy cars today is most accurate?
a. Women are more concerned with features that would help survive an accident; men
are more concerned with features that would help avoid an accident.
b. Women have definite likes or dislikes when buying a car, but they don”t feel
comfortable expressing their opinions.
c. When it comes to the actual purchase process, women are more adept negotiators
than men.
d. Women care more about exterior styles and lines and men are more concerned with
cargo space and gas mileage.
e. Women usually shop one dealership before making a decision and men usually shop
three.
Answer:
The feeling of postpurchase psychological tension or anxiety consumers may
experience when faced with two or more highly attractive alternatives is referred to as
a. angst.
b. the temporal state.
c. the dissociative state.
d. selective perception.
e. cognitive dissonance.
Answer:
Figure 1.
Figure 1. above represents the six steps in the price-setting process. Which letter
represents the step where a firm would balance incremental costs and revenues?
a. “E”
b. “F”
c. “D”
d. “C”
e. “A”
Answer:
The gift shop purchased four sets of Block brand handpainted stemware expecting to
sell all four at the list price of $24.99. Unfortunately, the demand for the stemware was
not as high as the owner had anticipated. She was only able to sell one at this price. She
reduced the price on the other three sets to $16.49 and was able to sell all three sets.
Calculate her markdown percentage.
a. 0.34 percent
b. 3.43 percent
c. 34.3 percent
d. 2.78 percent
e. 27.8 percent
Answer:
Frequency marketing is a market segmentation strategy that focuses on
a. trial.
b. the average number of times a person in the target audience is exposed to an
advertisement.
c. usage rate.
d. consumption incidence.
e. turnover.
Answer:
The setting of prices for all items in a product line to cover the total cost and produce a
profit for the complete line, not necessarily for each item, is referred to as
a. line item pricing.
b. product-line pricing.
c. price lining.
d. customary pricing.
e. discretionary pricing.
Answer:
There are three approaches to viral marketing. Marketers can: (1) embed a message in
the product or service; (2) __________; and (3) offer incentives for referrals.
a. use customerization
b. use choiceboards
c. use niche marketing
d. make the website content so compelling that viewers want to share it with others
e. use permission marketing
Answer:
Involvement refers to
a. the external influences that affect a consumer’s purchase.
b. the personal, social, and economic significance of the purchase to the consumer.
c. the level of difficulty involved in making a purchase.
d. the total number of people involved in the actual exchange process.
e. the time, energy, and personal investment that will be required to use a product.
Answer:
A reference value __________.
a. is relative to the amount of time and energy a consumer puts into the purchase
process
b. is based upon the value assigned to similar items used by the consumer’s peers
c. results from performing a careful break-even analysis
d. involves comparing the costs and benefits of substitute items
e. is based upon the differential between customers’ “needs” and their “wants”
Answer:
Behavioral measures used to evaluate salespeople include assessments of a
salesperson’s __________, attention to customers, product knowledge, selling and
communication skills, appearance, and professional demeanor.
a. attitude
b. patience
c. intelligence
d. personal values
e. personal ethics
Answer:
If a purchase is a straight or modified rebuy for a manufacturer, the seller would most
likely emphasize a competitive price and __________ in meetings with the purchasing
agent.
a. nationwide distribution
b. a reliable supply
c. funds for advertising
d. a quality product
e. a great brand name
Answer:
An unintended effect of the proliferation of social media is
a. users are more connected than ever.
b. entrepreneurs are able to create start-up businesses with less financial investment
than was required in the past decades.
c. Twitter is gaining in popularity and will soon surpass Facebook as the most popular
social media site.
d. both YouTube and Vimeo became video sites.
e. LinkedIn is a site for business professionals to network.
Answer:
Figure 1.
Figure 1. above represents the four approaches to selecting an appropriate price level.
“D” represents which approach?
a. competition-oriented approach
b. demand-oriented approach
c. cost-oriented approach
d. profit-oriented approach
e. results-oriented approach
Answer:
Figure 1.
Figure 1. above represents the six steps in setting price. Which letter represents the step
where a firm would identify pricing objectives such as profit, market share, and
survival?
a. “A”
b. “B”
c. “C”
d. “D”
e. “E”
Answer:
Electronic booksellers like Amazon.com and barnesandnoble.com are likely to enjoy
strong sales in the future because books as a product category
a. are highly standardized.
b. require audio or video demonstration.
c. do not require pre-purchase trial.
d. can be delivered inexpensively through bulk mail.
e. are purchased mainly on the basis of price.
Answer:
Blogs and wikis differ in that a blog is a diary that shows a __________, while a wiki
shows the end result as a __________.
a. complete thought process; fragmented group of ideas
b. sequential journey; single entry
c. single entry; sequential journey
d. personal side of the user; formal presentation
e. long narrative; block of text
Answer:
Figure 1.
According to Figure 1. above, “B” represents which step in the price-setting process?
a. estimate demand and revenue
b. identify pricing objectives and constraints
c. scan competitors for prices of similar products or services
d. select the appropriate pricing formula
e. determine cost, volume, and profit relationships
Answer:
Which one of the following statements regarding bundle pricing is most accurate?
a. Bundle pricing is intended to benefit the consumer, not the seller.
b. Bundle pricing is really “bundle packaging” since the price charged is for two or
more products that are shrink-wrapped together.
c. Bundle pricing is often associated with a skimming strategy.
d. Bundle pricing often provides a lower total cost to buyers and lower marketing costs
to sellers.
e. Bundle pricing is based on the idea that consumers value the individual items more
than they value the group contained in the package.
Answer:
The __________ can require a company to spend money on corrective advertising to
rectify previous misleading ads.
a. Food and Drug Administration
b. U.S. Department of Justice
c. Federal Trade Commission
d. Better Business Bureau
e. American Marketing Association
Answer:
All of the following are aspects of Trader Joe’s customer experience EXCEPT:
a. it has stores in all 48 states in the continental United States
b. it offers unusual food products not available from other retailers
c. it stocks yuppie-friendly staples on its shelves
d. it sets low prices by offering its own brands, not national ones
e. it provides rare employee “engagement” to help customers
Answer: