In the context of execution styles in advertising, using an animated character that
represents a product in an advertisement is an example of an endorsement.
Order takers typically participate in creative selling, social selling, and relationship
marketing.
Light users are often a small percentage of a company’s market but account for a high
percentage of total consumption.
When using product bundle pricing, sellers combine several products and offer the
bundle at an increased price for increased profit.
Holiday Inn divided the total customer market into smaller segments and selected the
most promising segments. Deciding what position it wants to occupy in these segments
is called diversification.
A blocked currency is one whose removal from the country is restricted by the buyer’s
government.
The larger the gap between expectations and performance of a product, the greater a
consumer’s dissatisfaction.
Target return pricing is a variation of break-even pricing.
Demographic factors are the most popular bases for segmenting customer groups.
Team-based new product development encourages employees of all departments to
work within the roles and boundaries of their individual departments before combining
the results of their efforts at the commercialization stage.
A bank that helps a company finance transactions is both a financial intermediary and a
financial public.
Consumers are generally willing to make a special purchase effort to buy specialty
products.
________ pricing is when a firm tries to determine the price at which it will break even
or make the profit it is seeking.
A) Competition-based
B) Target return
C) Cost-plus
D) Good-value
E) Value-added
Which of the following is most likely a difference between advertising and sales
promotions?
A) Advertising is a sales-directed form of communication, while sales promotions are
endorsed as company news.
B) Advertising is an invitation to buy the product, while a sales promotion is an
incentive to buy the product immediately.
C) Advertising can be used to dramatize product offers, but sales promotion cannot be
used for this purpose.
D) Advertising can trigger quick sales, while sales promotions cannot.
E) Advertising is not as effective in building long-term brand preferences as sales
promotions are.
Which of the following is a drawback of management contracting?
A) It prevents a company from setting up its own operations for a period of time.
B) It is a high-risk method of getting into a foreign market.
C) It yields income to the contracting firm only much later in the process.
D) It does not provide the option of buying shares in the managed company later on.
E) It requires a domestic firm to export its products to a foreign company.
Coolers Inc. has decided to launch a new energy drink that will have the fewest calories
among its competitors. To understand the market potential for the new drink and the
demographics and attitudes of consumers who are likely to buy the product, Coolers
should most likely use ________.
A) exploratory research
B) archival research
C) causal research
D) experimental research
E) descriptive research
Marque, a high-end maker of designer watches, has started making inexpensive watches
to take advantage of enormous growth rates in low-end market segments. Marque is
most likely engaging in ________.
A) franchising
B) line filling
C) two-way stretching
D) upward stretching
E) downward stretching
Sales promotions targeted at ________ are called trade promotions.
A) government buyers
B) salespeople
C) business customers
D) final buyers
E) retailers and wholesalers
What is the primary advantage of using television as an advertising medium?
A) It involves a low cost per exposure.
B) It supports a high degree of audience selectivity.
C) It involves low absolute costs.
D) It contains low ad clutter.
E) It permits prominent exposure.
The societal marketing concept holds that ________.
A) consumers will not buy enough of a firm’s products unless the firm undertakes a
large-scale selling and promotion effort
B) a company’s marketing decisions should focus on creating economic value in a way
that also creates value for the surrounding environment
C) the society will only favor products that are available and highly affordable
D) achieving organizational goals depends on knowing the needs and wants of target
markets and delivering the desired satisfactions better than competitors do
E) consumers will favor products that offer the most in quality, performance, and
innovative features
Briefly compare the three different types of research approaches used for gathering
primary data.
Which of the following is true of an exclusive dealing arrangement between a producer
and a dealer?
A) It prohibits the producer from selling outside the dealer’s territory.
B) It prevents the producer from using any other dealer to sell its products regardless of
geographical area.
C) It gives the producer’s products more shelf power compared to a competitor’s
products being sold by the dealer.
D) It can be considered illegal if it increases competition substantially.
E) It does not allow other producers to sell to that dealer.
Which of the following marketing actions would a proactive organization most likely
take?
A) engaging in cause-related marketing activities
B) passively accepting the marketing environment
C) running advertorials to shape public opinion
D) carefully monitoring the regulatory environment
E) developing universally acceptable mission statements
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.
In a sequential new product development process, once a product or service passes the
business test, it moves into ________.
A) concept development
B) product development
C) test marketing
D) strategy development
E) commercialization
Which type of store is much larger than a regular supermarket and offers a large
assortment of routinely purchased food products, nonfood items, and services?
A) discount stores
B) specialty stores
C) factory outlets
D) superstores
E) off-price outlets
Pricing a product based on consumers’ reference prices is referred to as ________
pricing.
A) geographical
B) psychological
C) allowance
D) by-product
E) captive-product
The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over the
last two months. The manager decides to conduct marketing research to identify
potential causes for the drop in sales. Which of the following should the manager do
first?
A) develop a research plan
B) determine a research approach
C) define the problem and objectives
D) select a research agency to collect data
E) conduct exploratory and descriptive research
When a seller requires that only certain dealers carry its products, its strategy is known
as ________.
A) horizontal restraint of trade
B) intensive distribution
C) vertical distribution
D) disintermediation
E) exclusive distribution
Which of the following is an example of a combination of sales promotions and direct
marketing?
A) a company giving discounts on their product prices in order to gain a brand image
B) a company releasing a nationwide television ad about every buyer having a chance
to win a lottery prize
C) a company holding a press conference to talk about their new product
D) a company’s sales representatives meeting customers directly to present customized
offerings
E) a company sending an e-mail to a customer about a discount on a product during a
holiday season
Which of the following is a disadvantage of using online, mobile, and social media for
advertising?
A) The costs are high.
B) Audience selectivity is low.
C) The audience controls ad exposure.
D) The interactive capabilities are low.
E) There is little scope for personalization.
Differentiate between line extensions and brand extensions. Provide an example of
each.
Differentiate between intensive distribution, exclusive distribution, and selective
distribution strategies, Provide examples of products that would be appropriate for each.
Compare and contrast specialty stores and convenience stores.
What is brand equity?
Define marketing planning. Briefly outline what a company should cover in its
marketing plan.
Describe the various legislative actions that have been taken to regulate the manner in
which online, social media, and mobile operators obtain and use consumer information.