The sum of the expenses of the firm that vary directly with the quantity of the product
that is produced and sold is referred to as
a. fixed cost.
b. total cost.
c. marginal cost.
d. unit cost.
e. variable cost.
Answer:
The total cost of the products sold by a firm during a specified period is called
a. amortization.
b. cost of goods sold.
c. gross sales.
d. net sales.
e. gross margin.
Answer:
Which of the following global trends has significant implications to global marketers?
a. the declining populations of Latin/South American countries
b. the size of the markets in India and China
c. the tripling of the population of consumers under 40 years old
d. the decreasing interest in entrepreneurship in developing countries
e. the increased saving rates of elderly populations in developed countries
Answer:
Which of the following pricing techniques results in the manufacturers deliberately
adjusting the composition and features of a product to achieve the target price to
consumers?
a. cost-plus percentage-of-cost pricing
b. standard markup pricing
c. cost-plus fixed-fee pricing
d. experience curve pricing
e. target pricing
Answer:
In 1998, President Clinton signed the Digital Millennium Copyright Act, which
a. limits access of children to online material considered to be inappropriate or harmful.
b. improves protection of copyrighted digital products.
c. allows the government to collect taxes if printed materials are sold online.
d. prevents the pirating of digital products that do not display the copyright symbol.
e. allows anyone with access to a computer to publish original materials online and seek
remuneration (pay).
Answer:
Figure 1.
Based on the social media identified in Figure 1. above, Wikipedia has a __________
degree of self-disclosure.
a. high
b. medium
c. low
d. average
e. nonexistent
Answer:
When promoting its new Fiesta subcompact, Ford’s “Fiesta movement” on Twitter
received __________ tweets.
a. 100,000
b. 400,000
c. 1 million
d. 4 million
e. 10 million
Answer:
Different brands within a company’s product line generally have different profit
margins; for example, items with higher price lines have higher profit margins. Nike
Variety tennis shoes have variable costs of $6 and sell for $24, whereas Nike
Wimbledon tennis shoes have variable costs of $38 and sell for $48, but when fixed
overhead is added, the shoe is unprofitable by $2 per pair. Which statement is most
accurate regarding Nike’s pricing approach with these two product lines?
a. Demand for each shoe line is unrelated to price.
b. Nike is using a cost-plus percentage-of-cost pricing strategy.
c. Nike is using a product-line pricing strategy.
d. Demand for each shoe line is unrelated to product quality.
e. Consumers do not use price as an indication of quality.
Answer:
A discount that is based on the size of an individual purchase order rather than a series
of repeat orders is referred to as a(n)
a. cumulative quantity discount.
b. bundle pricing.
c. economic order discount.
d. noncumulative quantity discount.
e. promotional allowance.
Answer:
Among business products, which of the following would most likely be considered
accessory equipment?
a. a factory
b. sheet rock
c. a cleaning service
d. a drill press
e. pencils
Answer:
Price discrimination is illegal under the
a. Sherman Act.
b. Consumer Goods Pricing Act.
c. Robinson-Patman Act.
d. Federal Trade Commission Act.
e. Anti-Competitive Act.
Answer:
There are five alternative marketing strategies that can be identified by market-product
grids: market-product concentration, market specialization, __________, selective
specialization, and full coverage.
a. selective distribution
b. product specialization
c. market development
d. product reorientation
e. new product specialization
Answer:
Wholesalers who own the merchandise they sell but do not physically handle, stock, or
deliver it are referred to as __________.
a. cash and carry wholesalers
b. rack jobbers
c. truck jobbers
d. manufacturer’s representatives
e. drop shippers
Answer:
Over the past 30 years in the United States, the attitudes of men and women have
changed. One factor has been the __________.
a. Internet, which made gender, race, and ethnicity invisible in the marketplace
b. way women were portrayed in the movies and on television
c. increased participation of women in the workforce, which has made employers more
open-minded
d. efforts of political activists to advocate the power of women
e. economic shift that resulted in the courting of women to increase overall
discretionary spending
Answer:
Which of the following statements about advertising is most accurate?
a. Advertisers have limited control as to when and where their advertisements will be
placed.
b. A key advantage of advertising is its ability to use customized interactions.
c. Advertising can be a very effective “attention getter” especially for new products, but
has little impact for repeat buys.
d. Advertising is one of the least costly forms of promotion because it reaches a
pretested market.
e. Through advertising, a company can control what it wants to say, when they want to
say it, and to some extent, to whom the message is sent.
Answer:
Sampling is an appropriate strategy for which type of products?
a. products that are classified as shopping goods
b. new products
c. commodity products like salt, sugar, and baking soda
d. products that are perishable
e. products that are classified as specialty goods
Answer:
Canada has two official languages, which are
a. English and French.
b. English and Japanese.
c. English and Spanish.
d. English and Italian.
e. English and German.
Answer:
When a firm or business displays the Better Business Bureau (BBB) Accredited
Business logo on its store window or website, it assures consumers that
a. the company’s products comply with current safety standards set by the Consumer
Product Safety Commission.
b. it is a member of a voluntary alliance of companies whose goal is to help maintain
fair business practices.
c. the firm has met the standards for qualification as a green marketing firm.
d. the firm takes a proactive stance on diversity in the workplace.
e. the company incorporates sustainable business practices.
Answer:
Salesforce automation is the use of _________ to make the sales function more efficient
and effective.
a. workload method
b. territory matrixes
c. sales equity formulas
d. technology
e. policies
Answer:
Cooperative advertising refers to
a. advertising programs by which a manufacturer pays a percentage of the retailer’s
local advertising expense for advertising the manufacturer’s products.
b. advertising programs by which a manufacturer pays for national ad distribution and
the retailer pays for local advertising expense.
c. advertising for all stores located in strip malls or other shared facilities financed as a
part of their leasing fees.
d. advertising paid for by multiple independent firms to promote a product class rather
than an individual product or firm.
e. advertising paid for by several unrelated firms to promote a worthy cause such as
cancer research.
Answer:
Derived demand means the demand for industrial products and services is driven by, or
derived from, the
a. NAICS statistical models.
b. gross national product.
c. demand for consumer goods and services.
d. demand for industrial goods and services.
e. demand for government goods and services.
Answer:
A dramatic benefit of Activeion’s Ionator is its __________.
a. low cost
b. ease of application
c. compliance with ISO 9000 quality standards
d. environmental impact on users’ health and safety
e. cause marketing potential
Answer:
Figure 1.
In Figure 1. above, “C” represents the
a. strategic business unit level.
b. board of directors.
c. corporate level.
d. functional level.
e. CMO.
Answer:
Promotional websites generate interest in and trial of a company’s products and services
by
a. providing access to human service representatives to assist in making purchases.
b. accommodating interactive communication initiated by a company’s employees,
investors, and suppliers.
c. converting online browsers into online buyers.
d. providing information on how items can be used and where they can be purchased.
e. obtaining information on customer preferences and buying habits.
Answer:
The promotion-to-sales ratio can be used by managers to make year-to-year
comparisons of their programs, to compare the effectiveness of their program with
competitors’ programs, or to make comparisons with
a. calculated break-even points.
b. estimated return on investments.
c. promotion-to-expense ratios.
d. industry averages.
e. advertising-to-sales promotion ratios.
Answer:
IBM is one of the world’s great business success stories because of its ability to reinvent
itself to satisfy shifting customer needs in a(n) __________ global marketplace.
a. stagnant
b. dynamic
c. inert
d. lethargic
e. apathetic
Answer:
Which of the following firms has made the wisest wholesaler choice for its product?
a. Sam’s Coal Country uses a drop shipper for its coal.
b. Amy’s Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs.
c. Hannah’s Hardware uses a rack jobber for its hinges.
d. Shayna’s Superior Supplies uses a desk jobber for its staplers.
e. Nova’s Novelties uses a truck jobber for its never-needs-a-battery night lights.
Answer:
Someone who wanted to study the fact that in some nations black is a sign of mourning
while in other nations white is a sign of mourning would be studying
a. semiotics.
b. semantics.
c. semaphorics.
d. cultural symbolism.
e. cultural linguistics.
Answer:
In an episode of the Glee television series, members of the glee club sold home-baked
cupcakes at school to raise money. The students selling their cupcakes without any
intermediary would be an example of a(n)
a. personalized distribution.
b. non-permanent distribution.
c. informal channel of distribution.
d. direct channel of distribution.
e. indirect channel of distribution.
Answer:
Figure 1.
Figure 1. above shows the market-product grid for a Wendy’s restaurant next to a large
urban university campus. The best way to describe how the student market is segmented
is
a. whether the student is a faculty or staff member.
b. whether the student lives near the campus or far away.
c. whether the student has the disposable income to eat at Wendy’s.
d. combining the factors of where the student lives and when (s)he is on campus.
e. the meals eaten at the Wendy’s restaurant.
Answer:
The range of Gatorade offerings from the traditional Gatorade Thirst Quencher to newly
enhanced beverages conveying the attitude of a tough-love coach or personal trainer
through in-your-face names on the label and nutrition benefits inside are all examples of
a company’s commitment to __________ product improvement.
a. dynamic
b. discontinuous
c. continuous
d. symbiotic
e. simultaneous
Answer:
During its market segmentation process for the Nike Air Jordan XVII, Nike decided to
concentrate on affluent teens rather than members of high school basketball teams. This
is an example of
a. selecting target market segments to reach.
b. forming products to be sold into groups.
c. developing a market-product grid and estimating size of markets.
d. taking marketing actions to reach target markets.
e. forming prospective buyers into segments.
Answer:
A software manufacturer will only sell its popular line of Harry Potter software games
to retailers who will also carry its less successful Star Wars: The Prequel software
game. This is an example of a(n) __________.
a. exclusive dealing
b. requirement contract
c. exclusive territorial distributorship
d. tying arrangement
e. selective promotion contract
Answer:
The corporate level refers to the level in an organization where top management
a. develops marketing strategies and tactics for the marketing department to implement.
b. directs overall strategy for the entire organization.
c. executes all marketing program actions to ensure consistency of performance.
d. develops overall sales projections not only for the short term but also for a period of
at least two to five years.
e. supervises the hiring, firing, and training of all marketing department personnel.
Answer:
Regional shopping centers refer to a
a. retail cluster in a downtown area.
b. retail location that typically has one primary store and about 20 to 40 smaller outlets,
and serves a population base of about 100,000.
c. cluster of stores that serve people who are within a five- to ten-minute drive and
serves a population base of under 30,000.
d. group of 50 to 150 stores that typically attract customers who live or work within a 5-
to 10-mile range, often containing two or three anchor stores.
e. retail cluster of stores in uptown areas.
Answer: