Spruceland Millworks in Canada makes wooden pallets for transporting and storing
new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland
pallets would be classified as
a. reactive demand, which is tied to the sales of appliances, not the sale of the pallets.
b. derived demand, which is tied to the sales of appliances, but independent of the sales
of pallets.
c. derived demand, which is tied to the sales of pallets, which in turn, is tied to the sales
of appliances.
d. inelastic demand, which is tied to the cost of the components of the pallets.
e. elastic demand, which is tied to the cost of the components of the pallets.
Answer:
Figure 1.
In the breakdown for the NAICS code based on Figure 1. above, “B” represents the
a. two-digit industry sector code
b. three-digit industry subsector code
c. four-digit industry group code
d. five-digit industry code
e. six-digit U.S. national industry code
Answer:
Enron’s Chief Financial Officer Andrew Fastow was indicted and then pleaded guilty on
a charges of securities fraud in the Enron case and was accused of enriching himself
and his family at the company’s expense. Fastow, in his tenure with Enron, acted
a. ethically but illegally.
b. ethically and legally.
c. unethically and illegally.
d. unethically but legally.
e. in a socially responsible manner.
Answer:
LG Electronics recently introduced the Fridge-TV. This is an example of which type of
innovation?
a. inventive innovation
b. continuous innovation
c. discontinuous innovation
d. dynamically continuous innovation
e. continuous invention
Answer:
The maximum quantity of products consumers will buy at given price is shown by
a. a demand curve.
b. a price constraint.
c. a break-even point.
d. a supply curve.
e. a marginal revenue curve.
Answer:
One advantage of using newspapers as an advertising medium is
a. their long life span.
b. the excellent use of color graphics.
c. ads can be clipped and saved.
d. quick consumer response.
e. limited distraction from other features.
Answer:
Between 2 and 3 percent of the population have some degree of allergic reaction,
usually mild, to preservatives used in salad bars. Restaurants might consider people
with these “allergies” as a separate segment. To implement this segmentation strategy,
restaurants would have to have a regular salad bar and a special salad bar for the
allergies segment. This multiple product and multiple market segment strategy would
have the greatest difficulty meeting which of the following criteria used to form market
segments?
a. different needs of buyers among different segments
b. similarity of needs of potential buyers within a segment
c. simplicity and cost of assigning potential buyers to segments
d. potential for increased profit and ROI
e. potential of a marketing action to reach a segment
Answer:
Which of the following statements regarding Gatorade’s branding is most accurate?
a. Gatorade uses the same formula for all its products and simply changes the brand
name when introducing new flavors.
b. Gatorade’s success can be attributed to management’s decision to find and stick with
one channel of distribution.
c. Gatorade changed its color, packaging, and size of items in the product line for the
domestic market so that they would not conflict with those marketed to foreign markets.
d. Gatorade has used the same packaging since the product debuted in 1965.
e. Gatorade has changed its product formulation, packaging, and advertising over the
years in response to changes in the marketplace.
Answer:
Timing is an important element of markdowns. Those retailers who take a markdown as
soon as sales fall off are most likely doing so to __________.
a. placate dissatisfied customers
b. enhance customer perceptions of product quality
c. create an image as a “cutting edge” retailer
d. free up valuable selling space and cash
e. react to the entry of a new competitor
Answer:
Developing, pricing, promoting, and delivering services is challenging because the
quality of a service is often
a. inseparable.
b. inconsistent.
c. inventoried.
d. tied to a product.
e. independent of the quality delivered.
Answer:
Kim Nagele, the senior procurement agent at JCPMedia, purchases tons of publication
paper annually at a cost of hundreds of millions of dollars. Which role in the JCPenney
buying center does Ms. Nagele perform?
a. user
b. gatekeeper
c. influencer
d. buyer
e. decider
Answer:
Another name of a closed-end question is a(n) __________ question.
a. Likert scale
b. fixed-alternative
c. dichotomous
d. leading
e. semantic differential
Answer:
Which of the following profiles would most likely describe an online consumer?
a. a tech-savvy high school student living with her parents
b. a 21-year-old high school graduate earning $18,000 annually living in his own
apartment
c. a 28-year-old chemical engineer living in the suburbs with her husband and two
children
d. a 35-year-old high school teacher living with his wife in a duplex
e. a 70-year-old retired naval officer living in a retirement community
Answer:
The two basic components of a customer’s evaluation of a service are
a. expectations and customer contact.
b. expectations and experience.
c. intangibility and inconsistency.
d. experience and credence.
e. inconsistency and inseparability.
Answer:
Tony Hsieh, CEO of Zappos, offers $2,000 to anyone who
a. identifies a completely new market segment with a product to match it.
b. finds a way of improving service to online customers.
c. takes the customer loyalty training class and decides to quit anyway.
d. finds a shoe-related product that Zappos does not already carry.
e. creates a theme for “Weirdo Wednesday” when company meetings are held.
Answer:
A restriction placed on the amount of a product allowed to enter or leave a country is
referred to as a
a. quota.
b. tariff.
c. GATT tax.
d. subsidy.
e. excise tax.
Answer:
The promotional mix includes advertising, personal selling, sales promotion,
__________, and direct marketing.
a. public relations
b. infomercials
c. merchandising
d. word-of-mouth
e. publicity
Answer:
Stores that carry tremendous depth in one primary line of merchandise are referred to as
a. hypermarkets.
b. intertype outlets.
c. scrambled merchandise stores.
d. limited-line stores.
e. single-line stores.
Answer:
Asking the prospect to make a decision on some aspect of the purchase is referred to as
a(n) __________ close.
a. urgency
b. preemptory
c. presumptive
d. trial
e. final
Answer:
An indicator used to compare the increase in sales of stores that have been open for the
same period of time is called
a. market share of each store.
b. same-store sales growth.
c. sales per square foot of each store.
d. gross sales per store.
e. net profit per store.
Answer:
A buy class situation affects buying center tendencies in different ways. If there are
many people involved, the problem definition is uncertain, and the buying influence
comes from technical or operating personnel, the buy class situation is MOST
LIKELY a
a. conditional buy.
b. straight rebuy.
c. new buy.
d. modified rebuy.
e. standard buy.
Answer:
Figure 1.B
With respect to Figure 1.B above, the pie ‘slice” labeled “E,” or __________, has 9% of
the total advertising expenditures.
a. newspapers
b. radio
c. television
d. direct mail
e. magazines
Answer:
When Clorox uses the Good Housekeeping Seal for its Fresh Step cat litter, its strategy
is to reduce a consumer’s __________ and encourage purchases.
a. consumer angst
b. cognitive dissonance
c. perceived risk
d. purchase anxiety
e. consumer cynicism
Answer:
Figure 1.
Based on Figure 1. above, what is MOST LIKELY the industry sector represented by
NAICS code 51?
a. manufacturing
b. fisheries
c. information
d. publishing
e. retailing
Answer:
Much of Google’s success is based on the ten guidelines of its corporate philosophy.
Guideline 3 states, “Fast is better than __________.”
a. last
b. perfect
c. slow
d. accurate
e. pretty fast
Answer:
Davidson-Uphoff & Company sells ironware accessories for home and garden to
retailers. When its salesperson told the prospect, “For this week only, we will pay the all
the shipping costs for new customers,” the salesperson was using a(n) __________
close.
a. reactive
b. assumption
c. urgency
d. consultative
e. definitive
Answer:
Williams-Sonoma is a specialty store that caters to customers who want to cook at
home. It offers free cooking classes, has frequent demonstrations by cookbook authors,
and has employees who are knowledgeable about food preparation. The sales staff helps
customers make their selections. Williams-Sonoma is a __________ retailer.
a. exclusive-service
b. full-service
c. upscale-service
d. self-service
e. limited-service
Answer:
Companies can employ four general branding strategies, which include: (1)
multiproduct branding; (2) multibranding; (3) __________; and (4) mixed branding.
a. retailer branding
b. intermediary branding
c. private branding
d. brand licensing
e. co-branding
Answer:
Which of the following statements about Hispanic buying patterns is most accurate?
a. Hispanics are brand loyal and willing to pay a premium price for premium quality.
b. Hispanic buying preferences are strongly influenced by contemporary fads and
fashions.
c. Hispanics are dubious about using advertising as a credible information source.
d. Convenience is an important product attribute to Hispanic homemakers with respect
to food preparation or consumption.
e. The differences between Hispanic buying patterns have virtually disappeared within
the past ten years.
Answer:
Basic to setting a product’s price is the extent of __________. This information is used
in estimating the revenues the firm expects to receive.
a. management’s commitment to the product relative to other products in the line
b. curiosity or interest potential consumers expressed during market testing
c. customer demand for it
d. the firm’s promotional budget
e. distribution requirements
Answer:
Which of the following is a socializing force that dictates what is morally right and
just?
a. federal regulatory agencies like the FTC
b. federal, state, and local legislation
c. the U.S. Supreme Court
d. culture
e. organizational core values
Answer:
Customers can build their own bicycle at SevenCycles.com by answering a few
questions and choosing from a menu of product attributes, prices, and delivery options.
The design of a precise bicycle is made possible through the use of a _________.
a. seller menu
b. seller cookie
c. content screen
d. choiceboard
e. collaborative filter
Answer:
Harris Interactive, a large U.S. research firm, has identified six distinct online consumer
lifestyle segments: (1) __________; (2) hunter-gatherers; (3) brand loyalists; (4)
time-sensitive materialists; (5) hooked, online and single; and (6) ebivalent newbies.
a. drifting surfers
b. desktop veterans
c. media movers
d. click-and-mortar
e. digital collaborators
Answer:
Figure 1.
Figure 1. above shows that to maximize revenue, Newsweek should price its magazine
at
a. $2.50.
b. $2.00.
c. $1.5.
d. $1.0.
e. $0.50.
Answer:
Anheuser-Busch is trying to meet the needs of a very diverse group: its customers who
drink beer, environmentalists, ABRC, shareholders, and underage children who might
think “drinking is cool.” The primary reason for its desire to satisfy these needs is
consistent with the idea of social responsibility because
a. all of these people or groups are its stakeholders.
b. if Anheuser-Busch is not profitable, too many people will lose their jobs.
c. the larger Anheuser-Busch’s profits, the more taxes they will be able to pay.
d. contrary to popular belief, alcohol can be good for you if consumed in moderation.
e. the more highly thought of by potential consumers, the higher company’s sales would
be.
Answer: