Quaker Oats inserted $5 million worth of gold and silver coins in Ken-L Ration dog
food packages. This is an example of a contest.
Providing service to the customer after a purchase is not an activity associated with the
value chain.
Marketers can collect and analyze detailed information about consumer attitudes toward
a brand from social media sources such as Facebook and Twitter.
When an insurance company tailors its promotional messages to show how its products
protect people from being devastated by a natural disaster or an accident, the company
is appealing to a higher level need on Maslow’s hierarchy of needs.
When Sherwin-Williams Paint Company has single ownership of integrated, successive
stages of production and distribution, it has created a corporate VMS.
A stock-keeping unit (SKU) is a unique identifier for each distinct brand.
It is just as expensive for a company to retain good customers as it is to acquire
customers.
Age and gender are examples of demographic segmentation variables.
It’s usually easier to convince customers to adopt a continuous innovation than a
discontinuous innovation.
Exploratory research is typically large scale and more expensive than other research
techniques.
The elements of the marketing mix are the four Ps.
Retailers like Sam’s Club that promise bottom-dollar prices are often self-service
operations.
Group dynamics are important to the success of party plan systems.
Idea generation is also known as the ideation phase of product development.
Each year, the majority of new products introduced fail.
Limited-service wholesalers do not take title to the merchandise they handle.
On the Upper West Side of Manhattan, there are hundreds of independent restaurants
offering different specialties, services, and prices. The market for restaurants in this
neighborhood is in a state of monopolistic competition.
Differential benefits set products apart from competitors’ products by providing
something unique that customers want.
Tired Toes is a new line of foot care products. The company’s marketing team wants to
help build buzz for the line by creating a brand community. The marketing team should
use social networks to achieve this objective.
Suppliers are more likely to stay price competitive when the purchasing company uses
single sourcing than when it uses multiple sourcing.
Customers whose complaints are resolved quickly are no more likely to buy from the
same company again than are customers whose complaints are resolved slowly.
Buzz works best when companies put paid consumers in charge of creating their own
messages.
Perceptual maps are tools for identifying the positions of brands in consumers’ minds.
Mobile phones are more prevalent in the United States than in any other country.
By definition, personal selling takes place in person.
Employee morale, promotion strategies, and competitors’ reactions are all aspects of a
company’s internal environment.
When a major moving van company sells accessory products (boxes, bubble wrap, etc.)
that must be used in moving a household’s furniture, the company is practicing captive
pricing.
The distribution strategy is the place component of the marketing mix.
A marketer who wants to achieve a competitive advantage over her rivals cannot use
the marketing mix to achieve this goal.
Cannibalization is not a concern for traditional retailers who also operate an
e-commerce site because the two locations attract completely different markets.
According to Maslow’s hierarchy of needs, a person is concerned with fulfilling basic
physiological needs before he is concerned with fulfilling social or psychological needs.
Nondurable goods are more likely than durable goods to be purchased under conditions
of high involvement.
Long-term profitability will not be affected if the brand managers offer an excess of
coupons or cents-off packages to customers.
Strategic business units (SBUs) are individual units representing different areas of
business within a firm that have their own missions, business objectives, resources,
managers, and competitors.
The promotion element of the marketing mix includes the design of the product.
Channels that contain intermediaries are indirect.
Companies are most likely to use data mining results identifying unprofitable customers
for ________.
A) customer retention
B) customer loyalty
C) customer acquisition
D) customer abandonment
E) market basket analysis
Which of the following best describes the market segment referred to as the bottom of
the pyramid (BOP)?
A) a national segment of lower income consumers
B) a national segment of non-native language speakers
C) a national segment of individuals with a high-school only education
D) a global segment of consumers who earn less than $2 per day
E) a global segment of children in lower income families
A survey about pet ownership used a sample derived from people who visit a website
and register. This sample would lack ________ because not everyone has Internet
access.
A) flexibility
B) validity
C) responsiveness
D) reliability
E) representativeness
Diffusion refers to ________.
A) how promotion is used to support products throughout their product life cycle
B) the second stage of the market segmentation process
C) the methodology for evaluating new product ideas
D) how the use of a product spreads throughout a population
E) the selection of opinion leaders to encourage product acceptance
An ad for Ford did not advertise any cars, but instead explained the meaning of the
company’s slogan, “no boundaries.” This ad is an example of ________.
A) product advertising
B) a sales promotion
C) institutional advertising
D) advocacy advertising
E) retail advertising
A producer of beverages and snack foods wants to market its products to the
14-to-22-year-old demographic, providing incentives to respond instantly to
time-sensitive offers. Which of the following forms of direct marketing would this
producer most likely choose?
A) direct-response TV
B) m-commerce
C) telemarketing
D) catalog marketing
E) direct mail
Through a process of ________, traditional intermediaries are being eliminated as many
companies question the value added by layers in the distribution channel.
A) knowledge management
B) disintermediation
C) horizontal marketing
D) vertical marketing
E) hybrid marketing
Fence Patrol has developed an entirely new mounting system for chain link fences.
Although they are a local company, through the acquisition of a distributor they now
have the ability to market their products nationwide. Fence Patrol will most likely use a
________ strategy.
A) market penetration
B) market development
C) diversification
D) divesting
E) product development
Which of the following is an external influence that affects pricing decisions?
A) the salaries of production management
B) competition
C) the salaries of finance management
D) overall pricing objectives
E) the company’s overall marketing strategy
Federal legislation on price-fixing requires that sellers set their prices ________.
A) based on their fixed and variable costs
B) without communication with competitors
C) to achieve a specified profit margin
D) consistently with all customers
E) consistently throughout a region
General Foods produces many different brands of coffee, including Brim, Maxim,
Maxwell House, International Coffees, Sanka, and Yuban. Each brand is likely to have
its own ________.
A) venture team
B) market manager
C) product category manager
D) communication manager
E) brand manager
Which of the following types of ads can users block with Internet access software
applications?
A) banners
B) buttons
C) pop-ups
D) search engine listings
E) directory listings
Organizational markets differ from consumer markets in that organizational markets
________.
A) have a high number of purchases that are low risk and low cost
B) have derived demand
C) are not geographically concentrated
D) have a single individual in the role of decision maker
E) involve more frequent purchases
Which of the following data collection methods is generally the least flexible?
A) telephone interviewing
B) face-to-face interviewing
C) mail questionnaires
D) online questionnaires
E) mall intercepts
Big Data would most likely be measured in which of the following?
A) megabytes
B) bytes
C) bits
D) megabits
E) terabytes
CRM and ERP databases are examples of ________ sources of Big Data.
A) social media
B) NGO
C) commercial entity
D) government
E) corporate
Assignment of responsibilities, time lines, budgets, and measurement and control
processes are documented in a(n) ________.
A) price strategy
B) promotion strategy
C) action plan
D) strategic plan
E) marketing mix
Change happens quickly when a process reaches the moment of critical mass, which is
called the ________.
A) adoption point
B) diffusion point
C) innovation point
D) trial point
E) tipping point
Children are difficult subjects for market researchers because they have poor recall and
often do not understand the questions they are asked. This brings into question the
________ of the survey.
A) flexibility
B) sampling
C) responsiveness
D) reliability
E) representativeness
When a customer feels regret after purchasing a product, she is experiencing ________.
A) psychography
B) a heuristic
C) an operant reaction
D) cognitive dissonance
E) a conditioned response
You own an independent store in your neighborhood and like to offer fresh seafood in
your meat display case. Which type of wholesaler is likely to best serve you?
A) cash-and-carry wholesaler
B) drop shipper
C) rack jobber
D) selling agent
E) commission merchant
Which of the following helps an organization focus on minimizing any harmful effects
it may have on the environment?
A) Six Sigma
B) ISO 9000
C) ISO 14000
D) ISO 22000
E) TQM
Which of the following is a limitation of the BCG matrix?
A) It doesn’t help managers determine which SBUs need investment to grow.
B) It doesn’t help managers determine which SBUs should be dropped from the
portfolio.
C) It focuses on the future of the market rather than current conditions.
D) It doesn’t tell managers the best ways to make growth happen.
E) It can’t be used by corporations with multiple SBUs.
Alcoholism and cigarette smoking are both examples of ________.
A) anticonsumption behaviors
B) “bait-and-switch” behaviors
C) consumer addictions
D) shrinkage
E) consumed consumer behaviors
Price fixing occurs when two or more companies conspire to ________.
A) keep prices at a certain level
B) use predatory pricing
C) use loss-leader pricing
D) use bait-and-switch tactics
E) prohibit competitors from entering a market
In terms of the five characteristics of innovations that affect the rate of adoption, the
digital camera would most clearly have a higher degree of ________ than flavored
bottled water.
A) compatibility
B) complexity
C) tangibility
D) comparability
E) trialability
Which of the following quantifies how an investment in marketing impacts the firm’s
success, financially and otherwise?
A) return on marketing investment
B) a Gantt chart
C) a SWOT analysis
D) portfolio analysis
E) a PERT chart
Which of the following is NOT one of the five characteristics of innovations that affect
the rate of adoption?
A) relative advantage
B) tangibility
C) observability
D) trialability
E) compatibility
Women who rent their wedding gowns instead of buying them and wearing them only
once are taking advantage of a ________ utility.
A) form
B) place
C) time
D) possession
E) price
Which of the following is a type of in-home selling?
A) the party plan system
B) network marketing
C) the pyramid system
D) e-commerce
E) experiential marketing
A business using price lining is doing which of the following?
A) trying to avoid the use of psychological pricing, which may be negatively received
by customers
B) trying to recoup its research and development costs for a new product
C) attempting to attain a large market share before any competitors can enter the
marketplace
D) selling items in a product line at different prices
E) engaging in potentially unethical pricing
In an attempt to set the company apart from its competitors, United Parcel Service has
its employees wear brown uniforms and drive brown trucks. What type of public
relations tool is UPS using?
A) buzz marketing
B) social networking
C) corporate identity materials
D) product publicity
E) public service materials
We are more likely to purchase ________ under conditions of high involvement and
________ under conditions of low involvement.
A) durable goods; nondurable goods
B) nondurable goods; durable goods
C) staples; impulse products
D) impulse products; staples
E) emergency products; unsought products
More goods and services are sold in the ________ market than in the ________ market.
A) domestic; international
B) business-to-business; consumer
C) consumer; producer
D) industrial; business-to-business
E) e-commerce; Internet
Identify an important difference for marketers between Twitter and Facebook.
Why might a firm want to use green packaging? Describe one type of green packaging
in your answer.
Explain the philosophy of customer relationship management (CRM).
Why might ad expenditures remain high in the growth stage of the product life cycle?
Write two questions that a firm would be likely to consider during the market planning
stage.
What is the sales job classification and responsibility of an employee who processes
purchases over the phone?
Explain why and how a company would adopt a consumer orientation.
How would an ice cream vendor create the four types of utility?
Social factors exert a broad and deep influence on consumer behavior. The marketer
needs to understand the role played by the buyer’s culture, subculture, and social class.
Compare the roles of culture, subculture, and social class.
How might a marketer benefit most from using PRIZM?
Compare and contrast specialty stores and convenience stores.
What types of products are intensively distributed?
What is ingredient branding? Why would manufacturers want to engage in ingredient
branding?
Why might ad expenditures be high for products in the introductory stage of the product
life cycle?
When Top-Flite introduced its Strata golf balls with a new dimple design and more
solid core for better flight with metal clubs, the price was three times that of regular
balls. Pro shops still could not keep them in stock. What is the pricing strategy
implemented by Top-Flite, and why did the company choose this strategy?