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Many low-income consumers find themselves in food deserts, which are plentiful in
fruits and vegetables, fresh fish, and chicken but lack products like frozen pizzas,
Cheetos, Moon Pies, and Cokes.
Answer:
The suppliers who are not adding value based on cost and quality are more in demand
than their competitors.
Answer:
The principle behind the percentage-of-sales method of budget setting is viewing sales
as the result of advertising.
Answer:
A company can offer greater customer value by either charging lower prices than
competitors or offering more benefits to justify higher prices.
Answer:
Cause-related marketing techniques are typically unprofitable for businesses, which is
why it is a rarely used form of corporate giving.
Answer:
Amazon.com targets opt-in customers with a limited number of helpful "we thought
you'd like to know" messages based on their expressed preferences and previous
purchases. This is referred to as permission-based e-mail advertising.
Answer:
In reverse auctions, companies put their purchasing requests online and invite suppliers
to bid for their business.
Answer:
Customer relationship management focuses on retaining existing customers but not on
acquiring new customers.
Answer:
Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according
to those who frequent their store regularly, those who visit infrequently, and those who
have never visited. This is an example of usage-rate segmentation.
Answer:
In vendor-managed inventory, buyers share sales information directly with key
suppliers.
Answer:
Lobbying refers to a PR department maintaining relationships with shareholders and
others in the financial community.
Answer:
Sales-force automation systems enable salespeople to profile prospects, forecast sales,
and prepare expense reports.
Answer:
A break-even chart shows the total cost and total revenue expected at various sales
volume levels of a product.
Answer:
Price packs are goods offered either free or at low cost as an incentive to buy a product,
such as toys included with Disney DVDs.
Answer:
In consumer product companies such as P&G or Nike, the sales force works directly
with customers.
Answer:
Branding has become so strong today that hardly anything goes unbranded.
Answer:
Using a differentiated marketing strategy, a company is likely to design a product and a
marketing program that will appeal to the largest number of buyers.
Answer:
Interpersonal factors are a major influence on business buyer behavior.
Answer:
Most producers sell their goods directly to final users.
Answer:
Many companies have started to target the LGBT market segment which has significant
buying power.
Answer:
Everyday low pricing is a cost-based pricing strategy.
Answer:
Social class is not determined by a single factor, such as income, but is measured as a
combination of occupation, income, education, wealth, and other variables.
Answer:
A brand's value proposition is the set of benefits or values it promises to deliver to
consumers to satisfy their needs.
Answer:
The most common evaluation method of a sales promotion program is to compare sales
before, during, and after a promotion.
Answer:
Persuasive advertising helps to maintain customer relationships and keep consumers
thinking about the product.
Answer:
Business and consumer marketers use many of the same variables to segment their
markets.
Answer:
A product is defined as anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need.
Answer:
Marketing channel design calls for analyzing consumer needs, setting channel
objectives, identifying major channel alternatives, and evaluating those alternatives.
Answer:
Reminder advertising is ideal for maintaining customer relationships with mature
products.
Answer:
Marketing logistics involves getting the right product to the right customer in the right
place at the right time profitably.
Answer:
Marketers typically limit their market segmentation analysis to a single variable in
order to simplify the process.
Answer:
Marketing researchers can conduct their own searches of secondary data sources by
using commercial online databases.
Answer:
Full-line forcing is considered an illegal arrangement that violates the Clayton Act.
Answer:
Order getters typically participate in creative selling, social selling, and relationship
building.
Answer:
The response rate in mail surveys is often very low.
Answer:
The demand curve shows the number of units the market will buy in a given time
period at similar prices.
Answer:
Factory outlet malls combine manufacturers' outlets with off-price retail stores and
department store clearance outlets.
Answer:
Casey's is a large supermarket that practices everyday low pricing. Therefore,
consumers should expect few discounts or sales if shopping at Casey's regularly.
Answer:
A blocked currency is one whose removal from the country is restricted by the buyer's
government.
Answer:
Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying
costs and risks for both suppliers and customers. Which channel function does
Electronics Storage primarily provide?
A) showrooming
B) assortment building
C) warehousing
D) financing
E) transporting
Answer:
A company that uses telephone marketing to sell its products to customers is most likely
using the promotion tool of ________.
A) advertising
B) public relations
C) direct and digital marketing
D) retailing
E) merchandising
Answer:
For most companies, the first step in conducting online marketing is to ________.
A) place an ad online
B) send e-mails
C) create a Web site
D) create a social networking site
E) place search-related ads
Answer:
Hammond Corp. operates in the highly aggressive electronics market. The firm aims to
obtain early warnings of opportunities and threats caused by the actions of other firms
that are doing well in the industry. Which of the following sources would best serve
Hammond's purpose?
A) sales data from exclusive Hammond retailers
B) archival data on company performance
C) competitive marketing intelligence
D) research on demographics of its existing customers
E) internal survey on employee performance
Answer:
A shoe company's ads feature the members of a popular country music band. Product
sales increase significantly among the band's fans. From the fans' viewpoint, the band is
a ________.
A) membership group
B) reference group
C) laggard
D) subculture
E) late-majority adopter
Answer:
Jeff is in the process of buying a new car. He carefully analyzes the features that he
wants in a car, and perceives significant differences in price, quality, and features
among three of his favorite models. He rates the models on each factor and ranks them
in the order of his preference. To which of the following stages of the buyer decision
process will Jeff most likely proceed next?
A) postpurchase behavior
B) evaluation of alternatives
C) information search
D) need recognition
E) purchase decision
Answer:
Which of the following is a social factor that influences consumer buying behavior?
A) family
B) life-cycle stage
C) economic situation
D) personality
E) occupation
Answer:
Which of the following is an advantage of management contracting?
A) It involves the fewest changes in a company's product lines.
B) It allows a contracting firm to set up its own operations at the beginning of the
contract.
C) It is the simplest way to enter a foreign market.
D) It yields income from the beginning of the contract.
E) It gives a contracting firm an option to buy shares in the managed company
immediately.
Answer:
Which statement is most likely true about the affordable method of setting an
advertising budget?
A) Spending on advertising is calculated based on the financial objectives a company
wishes to accomplish.
B) Spending on advertising is calculated after operating expenses and capital outlays
are deducted from total revenues.
C) Spending on advertising is based on a predetermined percentage of current or
forecasted sales for the year.
D) Spending on advertising is calculated as a percentage of the unit sales price.
E) Spending on advertising is based on a competitor's advertising outlays.
Answer:
Penny Bank, a discount store, is highly competitive. When entering a new market,
Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing
smaller retail stores with less purchasing power out of the market. In this case, Penny
Bank is using ________.
A) market skimming
B) psychological pricing
C) predatory pricing
D) deceptive pricing
E) cost-plus pricing
Answer:
Companies often form ________ ventures to merge their complementary strengths in
developing a global marketing opportunity.
A) licensing
B) direct investment
C) joint ownership
D) management contracting
E) contract manufacturing
Answer:
The initial function of a marketing information system is ________.
A) generating insights from market consumption patterns
B) analyzing the results of marketing research studies
C) evaluating information from internal and external sources
D) assessing the information needs of a company
E) hiring research firms to conduct market research
Answer:
Which contractual system is distinguished by the fact that it is normally based on some
unique product or service; method of doing business; or trade name, goodwill, or patent
that has been developed?
A) voluntary chain
B) retailer cooperative
C) franchise
D) corporate chain
E) warehouse club
Answer:
According to Sigmund Freud's theory, a person's buying decisions are ________.
A) easily revealed through online marketing surveys and questionnaires
B) affected by motives that the person is completely aware of
C) always driven by the need for status and independence
D) motivated by needs that are arranged in a hierarchy
E) affected by subconscious, hidden motivations
Answer:
Critics charge that high advertising and promotion costs unnecessarily increase retail
prices. Marketers most likely respond to this criticism by arguing that advertising
________.
A) provides essential psychological benefits about products
B) adds value by giving consumers product information
C) generates tax breaks for small businesses
D) applies a functional value to the product
E) lowers prices by increasing competition
Answer:
According to the BCG matrix, products or businesses with a high market share in a
high-growth market are classified as ________.
A) stars
B) cash cows
C) question marks
D) dogs
E) heroes
Answer:
Which of the following best describes a marketing department with a functional
organization?
A) A company creates large teams, or even whole divisions, to serve domestic and
international markets.
B) Marketing managers are responsible for developing marketing strategies and plans
for their specific markets or customers, and the company is organized around the needs
of specific customer segments.
C) A product manager develops and implements a complete strategy and marketing
program for a specific product or brand.
D) Sales and marketing people are assigned to specific countries, regions, and districts.
E) Different marketing activities are headed by specialists such as sales managers,
advertising managers, marketing research managers, and customer service managers.
Answer:
Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out
of favor with customers. Flurrbies represents an example of a ________.
A) form
B) fashion
C) fad
D) style
E) drift
Answer:
Harper Farms raises chickens. For years, it has used wooden coops for hauling its
poultry to market. When the owner, Jane Harper, went to reuse some of her coops, she
noticed many of them could not be sufficiently cleaned for reuse and needed to be
replaced. Which stage of the business buying decision process was Harper in when she
decided to replace her old coops?
A) problem recognition
B) general need description
C) product specification
D) product value analysis
E) performance review
Answer:
Which of the following is an advantage of licensing?
A) The licensee is not required to invest money in the business.
B) The licensor has more control over the licensee than it does in its own operations.
C) The licensee gains recognition without having to develop a product from scratch.
D) The licensor earns profits without having to share its intellectual property with
anyone.
E) The licensor faces no threats of competition from the licensee after the contract ends.
Answer:
If a company assigns individual teams of salespeople to big retail customers, it most
likely has a(n) ________ sales-force structure.
A) undifferentiated
B) product
C) market
D) territorial
E) demographic
Answer:
Which of the following terms is used to describe a specific mix of human traits that
may be attributed to a particular brand?
A) brand perception
B) brand architecture
C) brand personality
D) brand loyalty
E) brand equity
Answer:
Which of the following is true of personal selling?
A) It is the most effective promotional tool for geographically dispersed buyers.
B) It allows firms to dramatize product offers through arts and visuals.
C) It is the most expensive promotional tool for companies to utilize.
D) It is an ineffective method for building long-term customer relationships.
E) It presents a firm's message as news rather than as a sales-directed communication.
Answer:
A baby boomer decides to purchase a BMW to impress others with her success. This
illustrates the importance of understanding the role of ________ in the marketing
process.
A) personality
B) motive
C) attitude
D) learning
E) perception
Answer:
________ is the study of human populations in terms of size, density, location, age,
gender, race, occupation, and other statistics.
A) Sociobiology
B) Demography
C) Behavioral ecology
D) Environmental studies
E) Political science
Answer:
Which of the following is most likely true about companies that take a proactive stance
toward the marketing environment?
A) They develop strategies to change the marketing environment.
B) They believe that marketing strategies are bound by the current environment.
C) They passively accept the marketing environment in its current state.
D) They view the marketing environment as an uncontrollable element.
E) They design strategies according to environmental forces in the market.
Answer:
Sally purchased a newly introduced moisturizing lotion. By attempting to find out if the
lotion's perceived performance matched her expectations, Sally was measuring her level
of customer ________.
A) loyalty
B) satisfaction
C) equity
D) engagement
E) lifetime value
Answer:
Which wholesaler channel function is demonstrated when a wholesaler's sales force
helps a manufacturer reach many small customers at a low cost?
A) bulk breaking
B) selling and promoting
C) buying and assortment building
D) warehousing
E) risk bearing
Answer:
Which of the following is an example of a nontariff trade barrier?
A) a sales tax
B) customs duty
C) a host-country regulation
D) excise duty
E) an import quota
Answer:
For the past nine years, PepsiCo's Doritos brand has held a "Crash the Super Bowl"
contest in which it invites 30-second ads from consumers and runs the best ones during
the game. This is an example of ________.
A) consumer-generated marketing
B) frequency marketing
C) customer-club marketing
D) sustainable marketing
E) multi-level marketing
Answer:
________ is the degree to which an innovation appears superior to existing products.
A) Relative advantage
B) Compatibility
C) Complexity
D) Divisibility
E) Communicability
Answer:
________ refers to reducing the business portfolio by abandoning products that no
longer fit the company's overall strategy.
A) Market segmentation
B) Vertical integration
C) Product line extension
D) Downsizing
E) Diversification
Answer:
The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones &
More. Cones & More is an important resource for marketplace information. They're
considered a(n) ________ source of new product ideas for the Dairy Bar.
A) entrepreneurial
B) competitive
C) external
D) internal
E) intrapreuneurial
Answer:
Carleese, a leading fashion brand, sets up small temporary boutiques across numerous
locations during its year-end sale, promoting its outdated products at half the price.
These temporary boutiques are referred to as ________.
A) power centers
B) franchises
C) shopping centers
D) pop-up stores
E) category killers
Answer:
A class-action lawsuit was brought against a national burger chain, charging that its
food contributed to the nationwide obesity epidemic. The suit was eventually dismissed,
but critics continue to point out the health dangers of many fast food menu items. From
the description, it can be concluded that these critics are concerned that the fast food
industry is ________.
A) using high-pressure sales tactics
B) creating deceptive promotions
C) engaging in deceptive pricing
D) utilizing misleading packaging
E) selling harmful products
Answer:
What are the factors that a company should consider when deciding which markets to
enter?
Answer:
What is customer relationship management (CRM)? What are the functions of CRM?
How do firms benefit from CRM systems?
Answer:
Define telemarketing, and distinguish between outbound and inbound telemarketing.
Answer:
What are the different functions of the members of a marketing channel?
Answer:
Which pricing mix strategy should be used in relation to saleable scrap materials? How
does this strategy function?
Answer:
Explain the major types of buying situations.
Answer:
What is marketing analytics? Why has it become so central to gathering data about
customers and performance?
Answer:
What is customer value-based pricing? Describe the two types of value-based pricing.
Answer:
What is crowdsourcing? How is crowdsourcing useful in new product development?
Answer:
Explain how companies that market their products internationally decide what prices to
charge in different countries.
Answer:
Yuran Inc., a designer and seller of lifestyle products and inexpensive furniture, has
decided to engage in brand integration to advertise its products. The decision coincides
with Yuran's plan to release a new line of coffee tables that fold easily and do not take
up much space. What are the different ways in which Yuran can achieve brand
integration?
Answer:
Distinguish between a product idea, a product concept, and a product image.
Answer:
Marketing research can be collected by mail, telephone, personal interview, or online.
Discuss the disadvantages of each contact method.
Answer:
Markwin Electronics is a company that only sells products online. Orders are taken
through an interactive Web site, and goods are shipped out through a small warehouse
the company owns. Markwin employees also handle the shipment of goods to desired
destinations. How could marketing intermediaries help Markwin expand its business?
Answer:
Give an instance where a company exhibits social responsibility through business.
Answer:
What is a product mix? What are the four dimensions of a product mix?
Answer:
