The more elastic the demand, the more it pays for the seller to raise the price.
Answer:
To increase its ‘share of customer,” a firm concentrates on retaining as many customers
as possible over its lifetime.
Answer:
Integrating the promotion mix starts with suppliers.
Answer:
The integrated marketing concept ties together all of the company’s messages and
images.
Answer:
GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and
profit projections for some new products to find out whether they satisfy the company’s
objectives. This activity is called business product development.
Answer:
Marketing channel design calls for analyzing consumer needs, setting channel
objectives, identifying major channel alternatives, and evaluating those alternatives.
Answer:
Sales promotion consists of long-term incentives to encourage the purchase of a product
or service.
Answer:
A company’s mission could appropriately be stated as “making more sales or profits.”
Answer:
In the general needs description of the buying process, the buyer describes the
characteristics and quantity of the needed item.
Answer:
The American workforce today is less white-collar than in the late 20th century.
Answer:
To overcome price escalation when selling to less-affluent consumers in developing
countries, companies offer their same products at lower prices.
Answer:
Informative ads are used primarily in the growth stage of the product life cycle.
Answer:
When a company hires lobbyists to influence legislation affecting its industry, it is
taking a defensive stance toward the marketing environment.
Answer:
Search advertisers buy search terms from the search site and pay whenever the search
terms come up in the results of a consumer’s search.
Answer:
Branded community Web sites are designed to present brand content that engages
consumers and builds closer customer relationships rather than to sell the company’s
products directly.
Answer:
The distribution strategy during the decline stage of PLC involves building more
intensive distribution networks.
Answer:
Within the organization, buying activity consists of two major parts: the buying center
and the buying decision process.
Answer:
The purpose of strategic planning is to find ways in which your company can best use
its strengths to take advantage of attractive opportunities in the environment.
Answer:
The technological environment is predominantly static.
Answer:
Sales assistants confirm appointments, follow up on deliveries, and answer customers’
questions when outside salespeople cannot be reached.
Answer:
The goal of supervision is to encourage salespeople to “work hard” and energetically
toward sales force goals.
Answer:
Early mainstream adopters accept new ideas after the average person.
Answer:
Service companies can differentiate their service delivery by having more able and
reliable customer-contact people.
Answer:
Open-ended questions are especially useful in exploratory research.
Answer:
Value-based pricing uses the sellers’ perception of value as the key to pricing.
Answer:
Firms competing in a given target market, at any point in time, are similar in their
objectives and resources.
Answer:
In an endorsement style of execution, the endorsers can be characters that represent the
product.
Answer:
Psychographic segmentation divides buyers into different segments based on social
class, lifestyle, or personality characteristics.
Answer:
In a retailer cooperative, independent retailers band together to set up a jointly owned,
central wholesale operation and conduct joint merchandising and promotion efforts.
Answer:
According to the overall cost leadership competitive strategy, the company works hard
to achieve the lowest production and distribution costs.
Answer:
The simplest way to enter a foreign market is through direct investment.
Answer:
Customer relationship management helps manage detailed information about individual
customers and maximize customer loyalty.
Answer:
Blogs can be used to appeal to specific special-interest groups, about almost any topic.
Answer:
The percentage-of-sales budget is based on the availability of funds rather than on
opportunities.
Answer:
Like retailers, wholesalers must decide on product and service assortments, prices,
promotion, and place.
Answer:
Derived demand refers to the business demand that ultimately comes from the demand
for consumer goods.
Answer:
Which of the following factors would most likely lead to a company initiating a price
cut?
A) over-demand
B) weakened economy
C) poor competition
D) cost inflation
E) weak price competition
Answer:
What is the purpose of a data warehouse?
A) to obtain secondary data and integrate it with primary data
B) to gather and integrate data in a central, accessible location
C) to interpret the data obtained
D) to prevent the theft of customer data
E) to identify and discard outdated data
Answer:
An increasing number of American workers currently work from their homes or remote
offices and conduct their business by phone or the Internet. This trend has created a
________.
A) booming real estate market in the big cities
B) booming SOHO market
C) decline in the demand for convenience foods
D) decline in the demand for financial services
E) steady increase in global enterprises
Answer:
Brand ________ refers to how highly consumers regard and respect the brand.
A) esteem
B) conformance
C) differentiation
D) relevance
E) knowledge
Answer:
Costs that change with the level of production are referred to as ________.
A) fixed costs
B) variable costs
C) target costs
D) total costs
E) overhead costs
Answer:
Robin works in a manufacturing company in Ohio. She sells products and handles
customer requests via the company’s online live chat feature. In her company, Robin is
most likely a part of the ________.
A) outside sales force
B) inside sales force
C) product designing team
D) operations management team
E) executive management
Answer:
An illustration, a headline, and a copy are the three ________ elements of an
advertisement.
A) tone
B) mood
C) format
D) reach
E) frequency
Answer:
Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole
market. This firm uses a(n) ________ marketing strategy.
A) segmented
B) undifferentiated
C) individual
D) niche
E) one-to-one
Answer:
Under oligopolistic competition ________.
A) the market consists of a single dominant seller
B) the market consists of numerous small sellers
C) the market consists of many buyers and sellers who trade over a range of prices
rather than a single market price
D) sellers are typically unresponsive to competitors’ pricing strategies and marketing
moves
E) the market consists of only a few large sellers
Answer:
Which of the following terms refers to sellers being preoccupied with their own
products and losing sight of underlying consumer needs?
A) vendor lock-in
B) social loafing
C) value proposition
D) marketing myopia
E) conspicuous consumption
Answer:
________ are people within a reference group who, because of special skills,
knowledge, personality, or other characteristics, exert influence on others.
A) Opinion leaders
B) Innovators
C) Surrogate consumers
D) Stealth marketers
E) Lagging adopters
Answer:
The Internet offers ________, where the price can easily be adjusted to meet changes in
demand.
A) captive pricing
B) dynamic pricing
C) basing-point pricing
D) price bundling
E) cost-plus pricing
Answer:
The information sources that are the most effective at influencing a consumer’s
purchase decision are ________. These sources legitimize or evaluate products for the
buyer.
A) commercial
B) public
C) experimental
D) personal
E) attitudinal
Answer:
At Neiman Marcus, a first-class department store, customers shop for high-end products
and they are assisted in every phase of the shopping process. Neiman Marcus is a
________.
A) full-service retailer
B) limited-service retailer
C) self-service retailer
D) specialty store
E) superstore
Answer:
Neighborhood shopping centers are also known as ________.
A) power centers
B) lifestyle centers
C) warehouse clubs
D) strip malls
E) regional shopping centers
Answer:
Which type of wholesaler sells to manufacturers rather than to retailers?
A) industrial distributor
B) full-service wholesaler
C) cash-and-carry wholesaler
D) wholesale merchant
E) limited-service wholesaler
Answer:
When Kraft focused on cost cutting with its older, established brands, leaving them to
wither without much investment or modification, Kraft decided to ________ the older
products.
A) extend
B) modify
C) drop
D) harvest
E) analyze
Answer:
Orion Inc. operates in many industries, including pharmaceuticals and food products.
The company’s goal is to create “abundant and affordable food for all and a healthy
environment.” This represents Orion’s ________.
A) marketing plan
B) product mix
C) business portfolio
D) marketing mix
E) mission statement
Answer:
Joe Kerry, owner of a small bakery, wants to obtain marketing insights to improve his
business. Joe has a limited budget and would like to gather free secondary data. What is
the best option for Joe?
A) mail questionnaires
B) focus group interviews
C) Internet search engines
D) personal interviews
E) commercial online databases
Answer:
In the context of identifying competitors’ strategies, the more that one firm’s strategy
resembles another firm’s strategy, the more likely the two firms are to ________.
A) merge
B) compete
C) globalize
D) form a partnership
E) become market leaders
Answer:
The discount offered by Glamor Gifts to customers who bought Valentine-themed
merchandise the week following Valentine’s Day is an example of a ________.
A) functional discount
B) seasonal discount
C) trade discount
D) cash discount
E) time-based discount
Answer:
Which of the following statements is most likely true regarding the competitive-parity
method?
A) This method involves starting with total revenues, deducting operating expenses and
capital outlays, and then devoting some portion of the remaining funds to advertising.
B) It is based on the availability of funds rather than on opportunities.
C) It wrongly views sales as the cause of promotion rather than as the result.
D) In this method, promotion budgets are set to match competitors’ outlays.
E) This method involves setting the promotion budget at a certain percentage of current
or forecasted sales.
Answer:
Television, as a medium of advertisement, is characterized by ________.
A) high audience selectivity
B) low absolute costs
C) poor mass-marketing coverage
D) fleeting exposure
E) high cost per exposure
Answer:
Which of the following is true of promotional pricing?
A) It leads to ‘deal-prone’ customers who buy products only during sales.
B) It fortifies the brand’s image in the eyes of customers if relied upon extensively.
C) It simplifies shopping for customers if used simultaneously by multiple stores.
D) It makes balancing short-term sales incentives against long-term brand building
unnecessary.
E) It is extremely beneficial for the brand’s profitability if practiced repeatedly.
Answer:
Which of the following statements is most likely true regarding the objective-and-task
method of budget setting?
A) It forces management to spell out its assumptions about the relationship between the
money spent and promotion results.
B) It is the simplest and least time consuming method to use.
C) It is the least logical budget-setting method.
D) It involves setting the promotion budget to match competitors’ outlays.
E) It wrongly views sales as the cause of promotion rather than as the result.
Answer:
Elmo Inc., a Michigan-based manufacturer of athletic shoes, uses professional athletes
in its ad campaigns to help sell its products. This is an example of ________ marketing.
A) person
B) place
C) social
D) organization
E) internal
Answer:
Executives at an automobile manufacturing company conducted a brainstorming
session for selected employees. This session resulted in a large number of ideas for
developing new cars after extensive R&D. The executives then planned to filter out the
best ideas during the ________ stage.
A) business analysis
B) idea generation
C) concept testing
D) idea screening
E) concept development
Answer:
A market-coverage strategy in which a firm decides to target several market segments
and designs separate offers for each is known as ________.
A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) individual marketing
E) cross-marketing
Answer:
In the United States, job growth currently is the weakest for ________.
A) white collar workers
B) manufacturing workers
C) salespeople
D) telecommuters
E) professional workers
Answer:
In the communication process, an actual HP printer/fax machine advertisement would
be considered ________.
A) encoding
B) decoding
C) the product
D) the message
E) the medium
Answer:
What are the different steps in the selling process? Briefly describe each step.
Answer:
Explain why typical husband-dominant or wife-dominant products of the 1970s may no
longer be regarded as typical.
Answer:
A company has four choices when it comes to developing brands. Describe them.
Answer:
Explain channel power in a vertical marketing system.
Answer:
Explain break-even pricing.
Answer:
Companies that go global confront several major risks. Describe three of these risks.
Answer:
Describe how marketers use multiple segmentation bases to their advantage.
Answer:
Why is a company unlikely to set a uniform price all around the world?
Answer:
What are the different types of off-price retailers?
Answer:
What types of products would be successful with standardized global marketing?
Answer:
How is the personal selling process and customer relationship management
interrelated? What are the primary requirements of value selling?
Answer:
Why is niching profitable?
Answer:
How can marketers benefit from developing solutions to environmental problems, such
as pollution and raw material shortages?
Answer:
How do socially responsible firms positively impact consumers and the environment?
Answer:
Briefly explain why, until 2008, Americans amassed record amounts of debt and why
the free-spending trend has ended.
Answer:
Each product will have a life cycle, although its exact shape and length is not known in
advance. Briefly explain each phase of the product life cycle.
Answer: