Global companies have five strategies for matching products and their promotion
efforts to global markets. The strategy of selling virtually the same product in other
countries is referred to as
A. product adaptation.
B. product invention.
C. brand adaptation.
D. product extension.
E. product integration.
Answer:
The break-even point (BEP) = [Fixed cost (__________ – Unit variable cost)].
A. Total cost
B. Total expense
C. Fixed cost
D. Unit variable cost
E. Unit price
Answer:
Much of Google’s success is based on the ten guidelines of its corporate philosophy.
Guideline 10 states, “__________ just isn’t good enough.”
A. Second
B. Satisfying customers
C. Making money
D. Beating Apple
E. Great
Answer:
The services market sells diverse services such as legal advice, auto repair, and dry
cleaning; along with finance, insurance, and real estate businesses, and transportation,
__________ and public utility firms, and not-for-profit organizations, these firms
represent about 75 percent of all industrial firms.
A. wholesaling
B. retailing
C. government units
D. communication
E. manufacturing
Answer:
The __________ equation = (Unit price Quantity sold) – Total cost.
A. total revenue
B. variable cost
C. net present value
D. profit
E. break-even point
Answer:
VALS groups of consumers motivated by __________ are those who look for products
and services that demonstrate success to their peers or to a peer group they aspire to.
A. ideals
B. achievement
C. self-expression
D. rewards
E. success
Answer:
Heavy-duty Rayovac flashlights are sold to consumers throughout the United States.
However, Philips manufactures the bulbs used in Rayovac flashlights. The quantity of
bulbs Philips makes is related to how many flashlights Rayovac sells. This is an
example of
A. a tying arrangement.
B. reciprocity.
C. strategic alliance demand.
D. relationship marketing.
E. derived demand.
Answer:
Target return-on-investment pricing refers to
A. setting a price that allows the firm to invest in research and development for next
year.
B. adding a fixed percentage to the cost of all items in a specific product class.
C. setting prices to achieve a profit that is a specified percentage of the sales volume.
D. setting a price to achieve an annual target ROI.
E. setting a price based on an annual specific dollar target volume of profit.
Answer:
A formal statement of ethical principles and rules of conduct is referred to as a(n)
A. ethical mission.
B. moral code.
C. core value pronouncement.
D. code of conduct.
E. code of ethics.
Answer:
All of the following are true about StuffDOT EXCEPT:
A. StuffDOT users “dot” their favorite things to StuffDOT and receive cash rewards
when someone purchases that item.
B. StuffDOT start-up targets college-aged women.
C. StuffDOT is an exchange marketplace that allows customers to buy and firms to sell
products and services in the form of StuffDOT deals that are localized to a specific city.
D. StuffDOT campus ambassadors are a major force behind the platform’s growth.
E. StuffDOT reward money can be redeemed for gift cards with many major retailers.
Answer:
Figure 17-4
When using an account management policy grid, an account would replace personal
calls with telemarketing or direct mail if the account opportunity level assessment is
A. high, and the sales organization has a strong competitive position.
B. low, and the sales organization has a strong competitive position.
C. high, and there is a likelihood that a strong competitive position can be achieved.
D. low, and the sales organization has a low competitive position.
E. high, and the sales organization has strong competitive position.
Answer:
Direct marketing channels refer to
A. the distribution of products and services directly from the manufacturer’s production
site to end-users.
B. the traditional chain of distribution from manufacturer to retailer to consumer.
C. the use of agents who represent a single producer and are responsible for the entire
marketing function of that producer.
D. a method of distribution that allows consumers to buy products by interacting with
various advertising media without a face-to-face meeting with a salesperson.
E. a method of distribution that allows consumers to buy products through direct
personal interaction with the manufacturer’s representatives in order to provide more
personalized service.
Answer:
Which of the following would be an example of a fixed cost for a company that makes
carbon monoxide monitoring systems for employees to wear that work in hazardous
areas?
A. the lithium batteries that are used in each monitor
B. the chest harness used to wear the monitor
C. the insurance for the company’s factory
D. the free training videos that are sent to each new customer
E. the stainless steel, water-resistant cases in which the monitors are contained
Answer:
Recent studies comparing advertising in different media suggest that magazine
advertising
A. takes a relatively short time to read.
B. incorporates four-color graphics too frequently.
C. usually has little competition with other media features.
D. is quickly replacing television advertising.
E. is perceived to be more inspirational than other media.
Answer:
All of the following are idea evaluation methods EXCEPT:
A. a mail survey.
B. an online survey.
C. a focus group.
D. a telephone survey.
E. an e-mail survey.
Answer:
When Mandy last got her drive-thru order at the fast-food restaurant, she thought the
employee who helped her was cold and unfriendly. The food tasted good but was
overshadowed by the employee’s demeanor. Since then, Mandy often says something
derogatory to her friends about the restaurant based on this single experience. This is an
example of which issue associated with services?
A. inseparability
B. intangibility
C. impressionability
D. incongruity
E. inflexibility
Answer:
Michael Smolensky is CEO of Lifeway Foods, Inc., based in Skokie, IL. The company
sells kefir, a cultured milk product popular in Smolensky’s native Russia. Recently,
Smolensky, who had developed his own secret recipe, got a call from his supplier,
saying, “Michael, someone is trying to steal your secrets.” Smolensky discovered later
that a rival had called to ask the supplier for certain ingredients by their secret codes,
known only to Smolensky and the supplier. The rival had picked them out of Lifeway’s
refuse. This is an example of
A. corporate intelligence.
B. economic espionage.
C. clandestine trade secrets.
D. industrial sleuthing.
E. competitive surveillance.
Answer:
Purchasing products for resale or as an agent to supply of a product would be an
example of a __________ function of a marketing intermediary.
A. logistical
B. facilitating
C. risk taking
D. transactional
E. assorting
Answer:
Which answer reflects (in this order) a good, a service, and an idea that can be
marketed?
A. a candy bar, a wastepaper basket, and a vending machine
B. a CD, a concert, and a souvenir T-shirt
C. a political candidate, democracy, and freedom
D. an iPod, an iPhone, and an iPad
E. a toothbrush, laser teeth whitening, and dental hygiene
Answer:
Multichannel retailers are retailers that
A. sell different products through entirely different channels.
B. sell through different channels under different brand names.
C. utilize strategic and tactical wholesalers.
D. utilize and integrate a combination of traditional store formats and nonstore formats.
E. combine two channels for their offerings: one for products and the other for services.
Answer:
Trade promotions refer to
A. promotions where charitable contributions of a firm are tied directly to the customer
revenues produced through the promotion of one of its products.
B. methods used to get a nonpersonal, indirectly paid presentation of a company’s
products.
C. advertisements that show actual consumers using the product in a barter or
countertrade situation.
D. sales tools used to support a company’s advertising and personal selling directed to
wholesalers, distributors, or retailers.
E. sales promotions that are directed to ultimate consumers and are used to support
advertising and personal selling.
Answer:
An IT engineer specifies the type of electronic shopping cart to be used on the
company’s new website. The engineer also chooses the supplier who receives the
contract to provide the software. In the buying center, this person is the __________.
A. gatekeeper
B. decider
C. broker
D. influencer
E. user
Answer:
Davidson-Uphoff & Company sells ironware accessories for home and garden to
retailers. Its salespeople are trained to ask questions like, “What are the decorating
trends in this region?” and “What are you doing to take advantage of this trend?” This
company trains its salespeople to develop a presentation style that emphasizes the needs
and wants of its retailers. Once key needs have been uncovered, the salesperson is
taught to tailor his or her sales presentation so that the retailer can see why he or she
should carry Davidson-Uphoff products. Davidson-Uphoff’s salespeople are learning
the __________ selling format.
A. need-satisfaction
B. formula
C. stimulus-response
D. creative
E. problem resolution
Answer:
A contractual vertical marketing system refers to an arrangement whereby
A. privately owned distributors and retailers integrate their efforts, on a contractual
basis, to obtain greater functional economies and marketing impact than they could
achieve alone.
B. independent production and distribution firms integrate their efforts, on a contractual
basis, to obtain greater functional economies and marketing impact than they could
achieve alone.
C. a manufacturer offers a limited number of franchise licenses to restrict the number of
franchisees within a given geographical region.
D. a firm reaches different buyers by employing two or more different types of channels
for the same basic product.
E. a firm formally designates by contract one channel member – whether producer,
wholesaler, or retailer – to coordinate, direct, and support all other channel members.
Answer:
In international trade, dumping refers to
A. illegally disposing of unusable or damaged goods to avoid paying removal fees
and/or taxes.
B. a firm selling damaged or unsalable goods below their original production cost.
C. a firm selling quality goods at significantly lower prices for the primary purpose of
reducing inventory to make room for seasonal goods.
D. a firm selling quality goods at significantly lower prices for the primary purpose of
reducing inventory to make room for newer or more expensive models.
E. a firm selling a product in a foreign country below its domestic price or below its
actual cost.
Answer:
All of the following add to the costs of coupons EXCEPT:
A. misredemption.
B. redemption.
C. customer handling.
D. clearinghouse costs.
E. the advertisement to deliver it.
Answer:
The clandestine collection of trade secrets or proprietary information about a company’s
competitors is referred to as
A. trade piracy.
B. transnational fraud.
C. economic espionage.
D. competitive duplicity.
E. transnational espionage.
Answer:
Fidelity Investments Ad
The Fidelity Investments ad above highlights the advantages of its online trading
service relative to Schwab, E*TRADE, and TD Ameritrade. What type of product
advertisement is the Fidelity Investments ad shown above?
A. reminder
B. pioneering
C. reinforcement
D. comparative
E. rivalry
Answer:
Figure 7-4: Question 9
Consider Figure 7-4: Question 9 above, which was part of a Wendy’s survey that
assessed fast-food restaurant preferences among present and prospective consumers.
Which of the following statements most likely explains why Question 9 was included in
the questionnaire?
A. Wendy’s wanted to know if children eat at its restaurants.
B. Wendy’s wanted to know why people have children under age 18 living at home.
C. Wendy’s can use these personal and household demographic characteristics to
segment the fast-food market.
D. Wendy’s wants to know how much people earn so it knows whether it should take
credit cards for purchases.
E. Wendy’s wanted to send these respondents coupons for the products that would
appeal to them most.
Answer:
The five roles of individual family members in the consumer purchase decision process
are
A. associative group, aspiration group, opinion leader, decision maker, and user.
B. sustainer, experiential, belonger, emulator, and achiever.
C. opinion leader, influencer, decision maker, purchaser, and user.
D. information gatherer, influencer, decision maker, purchaser, and user.
E. need driven, inner directed, outer directed, opinion leader, and decision maker.
Answer:
The unique combination of benefits received by targeted buyers that includes quality,
convenience, on-time delivery, and before- and after-sale service at a specific price is
called
A. customer value.
B. target marketing.
C. benefit proposition.
D. value-based marketing.
E. a customer value proposition.
Answer:
Cultural symbols refer to
A. ideas that can be protected by international copyrights.
B. ideas that cannot be expressed by words or characters.
C. things that represent values that exist solely within a nation.
D. things that represent ideas and concepts.
E. words that represent pictures or designs.
Answer:
Starch Test Image
The Starch test used aided recall to determine the percentage of those (1) remember
seeing a specific magazine ad, (2) who saw or read any part of the ad identifying the
product or brand, (3) who read any part of the ad’s copy, and (4) __________.
A. who read at least half of the ad
B. who felt the ad was vague or ambiguous
C. who felt elements of the ad were inappropriate
D. who could summarize the key ad points in their own words
E. who remembered having seen the ad before and had already tried the product
Answer:
To move an SBU from its current position on a BCG business portfolio analysis, a
manager should concentrate mostly on
A. influencing the relative market share.
B. enhancing employee motivation to move a low valued SBU to a higher one.
C. adding a variety of new SBUs that will force out older ones.
D. influencing the market growth rate.
E. simplifying its offerings by removing features.
Answer:
Rather than emphasize demand, cost, or profit factors, a price setter can stress what
__________ is (are) doing.
A. the service sector
B. the market or competitors
C. consumers
D. suppliers
E. the financial markets
Answer: