Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy
in China. There are now than 3,700 restaurants in 650 Chinese cities, and KFC has a
40% market share of the entire fast-food industry there. Yum! Brands China owns and
directly manages about 90% of its Chinese stores, so it appears that the company
prefers __________ in this market.
A. licensing
B. local assembly
C. a joint venture
D. direct investment
E. local manufacturing
Answer:
The vertical axis of a demand curve graph represents __________.
A. market growth rate
B. relative market share
C. price per unit
D. potential profit in dollars
E. quantity demanded
Answer:
Estimating a break-even point would occur during which stage of the price-setting
process?
A. Defining the scope of the product
B. Selecting an approximate price level
C. Setting the list or quoted price
D. Evaluating the success of the price strategy
E. Making special adjustments to the list price
Answer:
As a business format franchisor, McDonald’s provides step-by-step procedures for most
aspects of the business and
A. provides an accounting system to pay the franchisee bills promptly.
B. shops for the best food values.
C. maintains the property.
D. guidelines for the most likely decisions a franchisee will face.
E. disciplines dishonest employees.
Answer:
Apple Market-Product Grid
According to the Apple market-product grid above, Apple would most likely get the
LEAST market synergies from
A. teachers and college staff.
B. individuals and small home office users.
C. medium/large businesses and college faculty.
D. students, teachers, and college faculty.
E. creative professionals.
Answer:
The purpose of pioneering institutional advertisements is to
A. promote a specific brand’s features and benefits.
B. inform people what a company is, what it can do, and where it is located.
C. state the position of a company on an issue.
D. reinforce previous knowledge of a product.
E. promote the advantages of one product class over another.
Answer:
All of the following statements about the overall marketing program for 3M’s Post-it
Flag Highlighters are true EXCEPT:
A. David Windorski, a 3M inventor, designed the second generation of Post-it Flag
Highlighters and Pens WITHOUT the rotating cover to make it easier to insert
replacement flags.
B. Students were initially the intended target market for the Post-it Flag Highlighter.
C. In his first attempt, David Windorski, a 3M inventor, designed the Post-it Flag
Highlighter in exactly the right way to appeal to its target market.
D. David Windorski, the designer of the Post-it Flag Highlighter, appeared on The
Oprah Winfrey show so she could thank him in person for “his most incredible
invention.”
E. Recently, 3M introduced additions to the Post-it Flag+ line: a Post-it Flag+ Gel Pen
and a Post-it Flag+ Permanent Marker.
Answer:
Figure 2-3b
According to Figure 2-3b above, which of the following SBUs 13-month sales trend has
declined over the past few months?
A. Grand Total
B. Software
C. Circuitry
D. Electronics
E. Hardware
Answer:
After defining the problem and developing the research plan, the next step in the
five-step marketing research approach is to
A. collect relevant information.
B. develop findings and recommendations.
C. take marketing actions.
D. plan the research budget.
E. identify the constraints on the process.
Answer:
All of the following are five situational influences can have an impact on a consumer’s
purchase decision process EXCEPT:
A. physical surroundings.
B. purchase task.
C. temporal effects.
D. consumer socialization.
E. antecedent states.
Answer:
A(n) __________ exists when a franchisor licenses individuals or firms to dispense a
service under a trade name and specific guidelines.
A. service-sponsored retail franchise system
B. manufacturer-sponsored wholesale franchise system
C. manufacturer-sponsored retail franchise system
D. administered vertical marketing system
E. service-sponsored franchise system
Answer:
A single social media site with millions of users interacting with each other, like
Facebook, Twitter, LinkedIn, and YouTube, is referred to as a(n)
A. social network.
B. gaming website.
C. electronic media.
D. social media.
E. feedback media.
Answer:
The VALS framework is an example of
A. a personality assessment.
B. cognitive learning theory.
C. a psychographic system.
D. a study on the hierarchy of needs.
E. geodemographic segmentation.
Answer:
The set of environmental forces that consists of the demographic characteristics of the
population and its culture is referred to as
A. social forces.
B. economic forces.
C. consumer forces.
D. cultural forces.
E. market forces.
Answer:
The goal of a SWOT analysis is to
A. identify market research questions in order to develop new products for new market
segments.
B. determine how raises, bonuses, and dividends will be paid.
C. reorganize the firm’s marketing department.
D. identify the critical strategy-related factors that can impact the firm.
E. fairly allocate governmental resources and financial aid across the industry.
Answer:
In marketing experiments, the independent variable is the __________ and the
dependent variable is the __________.
A. element that never changes; element that always changes
B. result; factor beyond the experimenter’s control
C. result of an action; cause of an action
D. cause of an action; result of an action
E. element that always changes; element that never changes
Answer:
Universal Concerts wants to bring a series of music concerts to Canada next year. In
general, Western Canadians prefer country music while Eastern Canadians prefer rock.
In fact, a country music event in eastern Canada is very likely to have lots of empty
seats. To maximize revenue, Universal Concerts should segment its Canadian market
according to __________.
A. geographic characteristics
B. demographic characteristics
C. music format characteristics
D. behavioral characteristics
E. psychographic characteristics
Answer:
Showing ad copy to a panel of consumers and having them rate how they liked it, how
much it drew their attention, and how attractive they thought it was, takes place during
__________.
A. focus groups
B. portfolio tests
C. jury tests
D. theater tests
E. performance tests
Answer:
Price discrimination refers to
A. the practice of charging different prices to different buyers for goods of like grade
and quality.
B. an arrangement a manufacturer makes with a reseller to handle only its products and
not those of a competitor.
C. the practice of charging a very low price for a product with the intent of driving
competitors out of business.
D. a conspiracy among firms to set prices for a product or service.
E. a seller’s requirement that the purchaser of one product also buy another product in
the line.
Answer:
Viral marketing refers to
A. an embedded message that causes a pop-up screen to appear every time a user types
in a specific word.
B. malicious malware that is used to create doppelgangers on competitors’ websites.
C. a subversive program that automatically transfers viruses from one website to
another.
D. an Internet-enabled promotional strategy that encourages individuals to forward
marketer-initiated messages to others via e-mail, social networking, and blogs.
E. an online multi-level marketing promotion that awards participants based upon how
many friends they “like” on personal social networking sites such as Facebook.
Answer:
Most firms seek to maximize their long-run __________, achieving as high a financial
return on their investments as possible.
A. quality
B. market share
C. employee welfare
D. social responsibility
E. profits
Answer:
Imagine that Post Cereal introduces a cereal bar, Trail Mix Crunch, just like the ones
Kellogg’s and General Mills already have on the market. Post has decided to promote
the bars using ads without coupons and to price the bars at about the same price as these
other brands. Post Cereal Trail Mix Crunch cereal bars will also be distributed to the
same stores as the products from Kellogg’s and General Mills’ bars. Which of the
following barriers to new product adoption will most likely prevent the success of Post
Trail Mix Crunch cereal bars?
A. value barrier
B. psychological barrier
C. risk barrier
D. usage barrier
E. social barrier
Answer:
The annual Sporting News Baseball Yearbook had exactly the same stories but with 17
different covers to appeal to baseball fans in 17 different regions of the U.S. What is the
basis of its market segmentation strategy?
A. psychographic segmentation
B. retail outlet segmentation
C. demographic segmentation
D. behavioral segmentation
E. geographic segmentation
Answer:
Criteria for forming segments involve both similarities and differences. In terms of the
needs of buyers, the similarities must be __________ a segment, and the differences
must be __________ segments.
A. between; among
B. throughout; absent in
C. within; among
D. absent in; throughout
E. among; across
Answer:
Another name for multiproduct branding is __________.
A. mixed branding
B. uniform branding
C. corporate branding
D. co-branding
E. agent licensing
Answer:
A Toyota dealership in British Columbia, Canada, donated $50 to the Make-A-Wish
Foundation of Canada for each Toyota purchased during a particular month. This is an
example of how a small business can engage in
A. philanthropic marketing.
B. cause marketing.
C. marketing altruism.
D. public relations marketing.
E. societal marketing.
Answer:
An arrangement whereby a firm reaches different buyers by employing two or more
different types of channels for the same basic product is referred to as __________.
A. a strategic channel alliance
B. multiple level selling
C. parallel distribution
D. dual distribution
E. recursive distribution
Answer:
The Clinique Division of Este Lauder, Inc., markets cosmetics through department
stores. Clinique reports that 37 percent of non-customers who visit its website later
purchase a Clinique product at a department store. It is impossible to purchase the items
from the website; rather Clinique uses its __________ website to build customer
relationships.
A. conventional
B. transactional
C. promotional
D. transformational
E. customer conversion
Answer:
Figure 17-2
As shown in Figure 17-2 above, C is the __________ stage in the personal selling
process.
A. approach
B. close
C. follow-up
D. prospecting
E. preapproach
Answer:
What global market-entry strategy involves slightly more risk than indirect exporting
for a company but also opens the door to increased profits?
A. direct exporting
B. licensing
C. cooperative
D. joint venture
E. direct investment
Answer:
When a response elicited by one stimulus becomes applicable to another stimulus, it is
called
A. selective comprehension.
B. selective retention.
C. stimulus generalization.
D. stimulus discrimination.
E. routine problem solving.
Answer:
The first Apple iPhone was introduced in 2007 at an initial price of $600. People waited
in line overnight so they could be one of the first to own this unique smartphone. Which
pricing strategy did Apple use to help recoup its research and development costs for the
smartphone?
A. penetration pricing
B. experience curve pricing
C. customary pricing
D. skimming pricing
E. target pricing
Answer:
One way TV advertising can reduce wasted coverage is to
A. identify the target market it wishes to address explicitly within the first three seconds
of the commercial so the message can be ignored by non-targeted viewers.
B. run shorter ads in a greater number of geographical areas.
C. identify specific times of day or night when the target audience would be more likely
to tune in.
D. develop more creative ads so that more people will choose to watch them.
E. run the ads on less expensive, narrowly focused, specialized cable and satellite
channels.
Answer:
A salesperson at Toshiba America Medical Systems uses a laptop computer with built-in
DVD capabilities to provide interactive presentations for their computerized
tomography (CT) and magnetic resonance imaging (MRI) scanners. With it, the
customer sees elaborate three-dimensional animations, high-resolution scans, and video
clips of the company’s products in operation as well as narrated testimonials from
satisfied customers. The technology enables both sales presentations and training
salespeople. This would be an example of the use of
A. specialized order taker.
B. sales management principles.
C. customer relationship management.
D. salesforce technology.
E. account management policies.
Answer: