38) A firm’s marketing mix consists of ________.
A) product, price, promotion, and place
B) passion, pride, promotion, and place
C) passion, pleasure, product, and price
D) enthusiasm, passion, product, and price
E) place, promotion, passion, and product
39) A firm’s ________, in the context of its marketing mix, is the good or service it offers to its
target market.
A) conception
B) idea
C) formation
D) product
E) invention
40) A ________ is something that takes on a physical form, such as a smartphone or a laptop
computer. A ________ is an activity or benefit that is intangible, such as an airplane trip or
advice from an accountant.
A) product; service
B) service; component
C) component; service
D) formation; service
E) service; product
41) The Partnering for Success feature in Chapter 11 focuses on Caribou Coffee and Bruegger’s
Bagels, two companies that have established a cobranding relationship. Cobranding is when two
companies ________.
A) pool their resources to buy advertising space to market their individual brands
B) locate their businesses in close proximity to one another because their brands are
complementary
C) form a partnership to combine their brands
D) employ the same advertising agency to promote their brands
E) pool their resources to license a brand from a third company
42) A(n) ________ is an early user of a firm’s product who is willing to give a testimonial
regarding his or her experience with the product.
A) tribute account
B) reference account
C) approval report
D) appreciation account
E) acknowledgment report
43) Before Kimberly Campbell opened her jiffy print store, she processed several large print jobs
for local merchants for free, to demonstrate the quality of her service and to solicit feedback.
Two of the merchants wrote favorable reviews of Kimberly’s service, and agreed to let Kimberly
post the reviews on her company’s Web site. The companies that wrote the favorable reviews are
referred to as ________.
A) appreciation reports
B) acknowledgement accounts
C) referent accounts
D) tribute reports
E) approval reports
44) The amount of money consumers pay to buy a product is its ________.
A) price
B) fee
C) value
D) cost
E) charge
45) Which element of the marketing mix is the only one that produces revenue?
A) Product
B) Place (or distribution)
C) Advertising
D) Price
E) Promotion
46) In ________-based pricing, the list price of an item is determined by adding a markup
percentage to a product’s cost.
A) cost
B) compliance
C) value
D) competitive
E) economic
47) Kevin Jackson owns a general contracting company. The way Kevin prices his services is to
figure his cost and then add a 33 percent markup. The method that Kevin uses to determine his
prices is called ________-based pricing.
A) economic
B) value
C) competitive
D) cost
E) conformity
48) In ________ pricing, the list price is determined by estimating what consumers are willing to
pay for a product and then backing off a bit to provide a cushion.
A) value-based
B) tactical
C) strategic
D) cost-based
E) economic-based
49) Annie Clarke owns a smartphone app development firm. The way Annie prices her products
is to determine what consumers are willing to pay, and then she backs off a bit to provide a
cushion. The method that Annie used to determine her prices is called ________ pricing.
A) predatory
B) technical
C) cost-based
D) competitive-based
E) value-based
50) According to the textbook, most experts recommend ________ pricing because it hinges on
the perceived value of a product or service.
A) value-based
B) cost-based
C) competitive-based
D) tactical
E) strategic
51) Karen Simon recently purchased a digital camera. She considered three cameras-a Sony that
was priced at $239.00, a Canon priced at $319.00, and a Nikon priced at $399.00. Karen couldn’t
tell much difference between the cameras, so she bought the Nikon, figuring that because it was
the most expensive of the three, it must be the best. According to the textbook, Karen was
making a ________.
A) price-quality attribution
B) price-merit attribution
C) cost-value acknowledgement
D) cost-worth attribution
E) price-worth acknowledgement
52) ________ refers to the activities the firm takes to communicate the merits of its product to its
target market.
A) Sponsorship
B) Advertising
C) Endorsement
D) Promotion
E) Price
53) The What Went Wrong feature in Chapter 11 focuses on a series of missteps at JCPenney
under the tenure of then CEO Ron Johnson. According to the feature, Johnson’s three most
damaging marketing-related mistakes were ________.
A) no testing of ideas in advance, poor product quality, and poor sales training for employees
B) reluctance to embrace online sales, a shift from value-based to cost-based pricing, and poor
sales training for employees
C) poor product quality, a total misread of JCPenney’s brand, and poor use of social media
D) Fair and Square Pricing, no testing of ideas in advance, and a total misread of JCPenney’s
brand
E) poor use of social media, Fair and Square Pricing, and poor sales training for employees
54) The Google program called ________ allows advertisers to buy keywords on the Google
Home Page.
A) AdSense
B) Adcenter
C) AdWords
D) Search Marketing
E) AdGoogle
55) Efforts to establish and maintain a company’s image with the public are referred to as
________.
A) open relations
B) public relations
C) civic relations
D) community relations
E) advertising
56) Every January thousands of electronic products manufacturers gather in Las Vegas to display
their products and to see what their competitors are up to. This type of event is called a
________ show.
A) trade
B) promotions
C) deal
D) goods
E) skill
57) The Savvy Entrepreneurial Firm feature in Chapter 11 focuses on Airbnb, the company that
created a marketplace for people to list, discover, and book unique spaces in people’s homes or
apartments while traveling. According to the feature, Airbnb was able to generate substantial
buzz about its service via the use of ________.
A) Facebook
B) Google AdSense
C) blogs
D) newspaper ads
E) Twitter
58) ________ marketing is a low-budget approach to marketing that relies on ingenuity,
cleverness, and surprise rather than traditional techniques.
A) Rebel
B) Bug
C) Catching
D) Guerrilla
E) Revolutionary
59) A(n) ________ channel is a route a product takes from the place it is made to the customer
who is the end user.
A) trade
B) product
C) allotment
D) promotion
E) distribution
60) A firm’s marketing mix is the assortment of products and services that it sells.
61) An important distinction should be made between a firm’s core product and its actual
product. While the core product may be a CD that contains an antivirus software program, the
actual product may have a number of characteristics, including a quality level, features, design, a
brand name, and packaging.
62) A referent account is an early user of a firm’s product who is willing to give a testimonial
regarding his or her experience with the product.
63) Price is the only element in the marketing mix that represents a cost—all other elements
produce revenue.
64) In cost-based pricing, the list price is determined by estimating what customers are willing to
pay for a product and then backing off a bit to provide a cushion.
65) Because of the weaknesses associated with advertising, most startups do not advertise their
products broadly.
66) The Google AdWords program allows advertisers to buy ads that will be shown on other
Web sites instead of Google’s Home Page.
67) Many startups emphasize advertising over public relations primarily because it’s cheaper and
helps build the firm’s credibility.
68) Social plugins are tools that Web sites can use to provide users with personalized social
experiences.
69) Describe the concept of guerrilla marketing. Why is guerrilla marketing particularly suitable
for entrepreneurial firms?
70) What is an exclusive distribution agreement? Why do firms enter into exclusive distribution
agreements with other firms?
71) A firm’s sales process ________.
A) is typically not put in place until a year or more after a startup launches
B) describes its branding strategy
C) depicts the steps it goes through to identify prospects and close sales
D) describes its social media strategy
E) depicts the steps it goes through to identify its target market and positioning strategy
72) The first step in the formal sales process described in the book is ________.
A) qualify the lead
B) make the sales presentation
C) prospect for sales leads
D) meet objections and concerns
E) make the initial contact
73) Which of the following statements is untrue regarding a firm’s sales process?
A) A formal sales process helps a firm fine tune its approach to sales and build uniformity into
the process.
B) Following a formal or structured process to generate and close sales benefits a firm.
C) A “sales process” is equally valuable whether a firm is selling directly to customers or
through intermediaries.
D) A firm’s sales process depicts the steps it goes through to identify its target market.
E) A formal sales process involves a number of identifiable steps.
74) The final step in the formal sales process described in the book is ________.
A) qualify the lead
B) make the sales presentation
C) follow-up
D) closing the sale
E) meeting objections and concerns
75) A firm’s sales process depicts the steps it goes through to identify prospects and close sales.