The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to:
a. attempt to make large payments or bribes to influence policy decisions of foreign
governments.
b. offer foreign businesses any type of incentive for purchasing their company’s
products and services.
c. change their ethical standards when dealing with foreign firms.
d. give even small tips or gifts in countries where such gifts are customary business
practices.
e. introduce any type of corruption into foreign businesses that have higher ethical
standards than those of the
U.S. firm.
The coordination of promotion and other marketing efforts for maximum informational
and persuasive impact best defines:
a. customer lifetime value.
b. integrated marketing communications.
c. product lifecycle management.
d. visual merchandising.
e. arrow information paradox.
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and
philanthropic social responsibilities expected by stakeholders is called:
a. marketing citizenship.
b. social responsibility.
c. social entrepreneurship.
d. cause-related marketing.
e. strategic philanthropy.
Which of the following would be considered an institutional buyer?
a. Aramark
b. City of Greenville
c. Apple Computers
d. The University of Illinois
e. The Environmental Protection Agency
Many health care companies are making adaptations to meet the needs of an aging
population as the demand for medical services and products such as diabetes supplies
increases. This change in marketing strategy is best explained by a change in:
a. demographics.
b. cultural values.
c. income levels.
d. consumerism.
e. subcultures.
The five major stages of the consumer buying decision process, in order, are:
a. information search, establishment of product criteria, evaluation of alternatives,
purchase, and post purchase evaluation.
b. problem recognition, information search, evaluation of alternatives, purchase, and
post purchase evaluation.
c. problem recognition, information search, evaluation of alternatives, pre purchase
evaluation and purchase.
d. information search, evaluation of alternatives, purchase, trial adoption period, and
post purchase evaluation.
e. problem recognition, purchase, evaluation of alternatives, post purchase evaluation,
and rebuy.
Marketers attempt to understand_____ because customers’ overall opinions and
attitudes toward a firm’s products have a great impact on the firm’s success.
a. buying motive
b. buying behavior
c. consumer socialization
d. response behavior
e. consumer perception
Managers at Caterpillar have determined the costs associated with producing hay balers
are equal to the price that they charge for the hay balers. This indicates that Caterpillar
is producing at the_________point.
a. break-even
b. marginal cost
c. profit margin
d. competitive price
e. profit maximizing
When the right combination of circumstances occurs at the right time to allow an
organization to take action toward a target market, the firm is faced with a .
a. market objective
b. market requirement
c. strategic market plan
d. market opportunity
e. corporate objective
The Home Depot differentiates its product offerings from its competition with stores
like Sam’s, by offering delivery and installation, warranties, and repairs. The Home
Depot is differentiating through:
a. product ancillaries.
b. company quality.
c. customer services.
d. company features.
e. product features.
Which of the following is true with respect to buyers in business markets?
a. Business buyers give little value to services.
b. Business customers tend to be less informed about the products they purchase than
consumer buyers.
c. Business customers demand detailed information about a product’s quality, features,
or technical specifications.
d. Business customers are no different than buyers in consumer markets.
e. Business customers tend to buy products from their friends and contacts with
business suppliers.
The values, needs, interests, shopping patterns, and buying habits of various subcultures
must be considered if a business wants to succeed.
a. True
b. False
An advertising platform should consist of issues that are important to consumers.
Selling features should be important to consumers and should be features that:
a. competitive products lack.
b. can be seen easily in a photograph.
c. are familiar concepts to those in the target market
. d. competitive products have as well.
e. are reasonably inexpensive to develop.
Pioneer advertising involves describing the features and benefits of a product in
contrast to a direct competitor.
a. True
b. False
Scenario1.1
Use the following to answer the questions. Greensprings Cemetery in upstate New
York, offers a full-service funeral and burial that is non-toxic to the environment. All
materials used in the burial are natural and will decompose with no negative impact.
Greensprings’ service is relatively new in the United States, but services of this type are
common in Great Britain. A typical burial in Greensprings’ cemetery includes a casket
made from bamboo, wicker, paper, or other natural material. There are no headstones of
stone or concrete that will detract from the landscape, but trees and plants as “markers”
are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to
about $6,000 at most traditional cemeteries. Although business was slow at first,
Greensprings is now experiencing an increase in the number of burials, due to referrals
and a newly-developed website. The owners of Greensprings were previously in the
cemetery business, and are active conservationist and wanted to make their business
more sustainable. After conducting research and finding that there were natural burial
sites in Great Britain, they wanted to provide an alternative to other
environmentally-conscious Americans like themselves. The customers of Greensprings
Cemeteries most likely prefer it because of its________ which is evidence of
a________.
a. pricing; sales orientation
b. environmental consciousness; market orientation
c. novelty; production orientation
d. environmental consciousness; business orientation
e. pricing; profit orientation
When all packages of a firm are designed to appear similar or include one major
element of the design, it is using family packaging.
a. True
b. False
After developing the budget for advertising the Kia Soul automobile, marketing
managers at Kia Inc. determined what proportion of that budget would be spent on
television, radio, and magazine advertisements based on the cost effectiveness of each.
This subsequent allocation of the budget is known as a(n) plan.
a. advertisement-allocation
b. media
c. arbitrary allocation
d. objective-and-task
e. percent-of-sales
For most products, a(n)__________relationship exists between the price of a particular
product and the quantity
demanded.
a. inelastic
b. inverse
c. positive
d. unknown
e. elastic relationship exists between the price of a particular product and the quantity
To gain market share, when Hyundai first entered the U.S. car market it did so with a
comparatively low pricing strategy. One of the negative side effects of making this
pricing decision is:
a. absence of product trial by the target market.
b. difficulty raising the prices later.
c. a high return on investment level affecting tax balances owed.
d. poor survival chances.
e. higher developmental costs.