Chapter 08 Developing Marketing Strategies Answer Key
Multiple Choice Questions
1.
Which of the following statements is true of the marketing concept?
2.
Which of the following is a strategy used by companies with a reputation for superior
marketing?
3.
_____ involves prodding businesses to improve the quality of their products and to expand
consumer knowledge.
4.
What is meant by the term competitive edge?
5.
_____ is the systematic gathering, recording, and analyzing of data about the
merchandising of goods and services.
6.
A primary marketing research technique used by most companies is _____.
7.
Questionnaires used for primary research should:
8.
Which of the following statements is true of database marketing?
9.
Market segmentation refers to the:
10.
Marketing mix refers to the _____.
11.
Which of the following statements is true of the introduction stage of the product life
cycle?
12.
Which of the following statements characterizes the growth stage of the product life
cycle?
13.
The sales of a product are rising rapidly and profits are peaking. This product is in the
_____ stage of the product life cycle.
14.
What happens during the maturity stage of the product life cycle?
15.
In which stage of the product life cycle does competition become more aggressive with
declining prices and profits?
16.
Promotion efforts may be cut and plans may be made to phase out a product during the
_____ stage of the product life cycle.
17.
John wants to start his own fruit juice and beverage company. He is aware of the large
number of competitors in this industry and of the fact that his product should not be very
costly. To differentiate his product from that of his competitors, he decides to sell his
beverages in specially designed containers that keep the juice fresh for 7 days even
without refrigeration. John is focusing on the _____ component of the marketing mix.
18.
A _____ price is one which is set relatively high initially in order to obtain the “cream” of
the target market before competitors enter.
19.
A penetration price refers to:
20.
Which of the following statements best describes leader pricing?
21.
_____ is the amount added to the cost of a product to determine selling price.
22.
In a store, an item is priced extremely low by a dealer, but the salesperson points out the
disadvantages of the item and switches customers to items of higher quality and price.
What is this pricing policy called?
23.
_____ are reductions from a product’s normal list price and are given to customers as an
inducement to buy more of the same product.
24.
A(n) _____ is given to customers for accepting less of something or as an adjustment for
variation in quality.
25.
A small retailer provides an allowance to a customer upon the purchase of a washing
machine. This is called a _____.
26.
A _____ is an item priced at or below the actual cost price to attract customers into the
store and buy more profitable items.
27.
Which pricing strategy is a building contractor most likely to use?
28.
A unit pricing policy is most likely to be used by a _____.
29.
Which of the following is an example of a strictly business-oriented service?
30.
While implementing a marketing strategy, _____ involves adding products that are
unrelated to the present product line.
True / False Questions
31.
The marketing concept states that a firm must put consumer needs first, even if it means
foregoing satisfactory profits.
32.
The marketing concept emphasizes that the survival of any business depends on providing
service to customers.
33.
The marketing concept is opposed to the systems approach in managing a business.
34.
When people buy something, there is no sense of satisfaction in the purchase made or in
the goods and services provided to them.
35.
Consumerism involves performing product tests.
36.
Deceptive or amplified advertising is an essential component of consumerism.