Which of the following is NOT a trend that is affecting marketing strategy planning?
A. fewer vertical marketing systems.
B. geographic shifts in population.
C. more attention to service technologies.
D. more Internet selling.
E. greater use of database-directed promotion.
Monopolistic competitionwhich is typical in our market-directed economyis caused by:
A. manipulation of markets by business firms.
B. customer preferences.
C. consumers’ unwillingness to pay for differentiated products.
D. business preferences.
E. None of these cause monopolistic competition.
Regarding the adoption curve, marketers may determine that there is little to be gained
from trying to inform or influence the:
A. Innovators.
B. Early adopters.
C. Early majority.
D. Late majority.
E. Laggards.
The statement, “Almond Joy is made with real almonds” is an example of:
A. a belief.
B. an intention.
C. an attitude.
D. a cue.
E. None of these alternatives is correct.
Which of the following social influences will likely have the greatest impact on a
teenager’s purchase of a skateboard?
A. family
B. reference group
C. culture
D. ethnic group
E. social class
The scientific method
A. rejects the idea that marketing managers can make “educated guesses” about
marketing relationships.
B. is an orderly way of presenting your point of view.
C. assumes that statistical analysis provides the only basis for rejecting an hypothesis.
D. is a hit-or-miss approach.
E. None of these alternatives is correct.
“Cooperative advertising” involves producers:
A. paying for intermediaries’ total advertising costs.
B. agreeing with competitors to limit advertising spending.
C. doing some advertising and expecting their intermediaries to provide the rest of the
promotion blend.
D. and intermediaries sharing in the cost of advertising placed in national media.
E. and intermediaries sharing in the cost of local advertising.
During the introduction stage of the product life cycle,
A. “me-too” products quickly take market share away from the innovator.
B. most products achieve intensive distribution.
C. industry profits are at their highest.
D. promotion is likely to be needed to build primary demand.
E. None of these alternatives is true.
Which of the following is NOT considered a product?
A. Tax advice from a financial consultant.
B. A computer.
C. A haircut.
D. A chair.
E. All of these are considered products.
Which of the following is the best example of an individual product?
A. 32-ounce boxes of Gain and Tide.
B. 3 types of pears.
C. Six brands of cookies.
D. 12 oz. size of Pert Plus.
E. All of these are good examples of individual products.
A product-market is one in which
A. products from different industries compete for customers by trying to satisfy the
same basic need.
B. price is the determining factor in deciding which brand to buy.
C. all of the customers want the exact same product but will consider a substitute if
their preferred brand is not available.
D. one seller has a monopoly and there is no competition.
E. None of these alternatives is true.
Which of the following is part of a complete marketing plan?
A. Competitors’ marketing strategies.
B. What company resources (costs) are required and at what rate.
C. How different marketing mixes (for different target markets) relate to each other.
D. All of these are parts of a complete marketing plan.
Marketing strategy decisions concerning Promotion include decisions about
A. packaging and branding.
B. the kinds of intermediaries to use.
C. training for salespeople.
D. transporting and storing.
E. discounts and allowances.
Which of the following pricing approaches specifically considers the concept of
elasticity of demand?
A. break-even pricing.
B. average-cost pricing.
C. markup pricing.
D. markdown pricing.
E. None of these considers the concept of elasticity of demand.
C.D. Jamison Co. is a wholesaler in Norfolk, Virginia. It carries a wide variety of
merchandise from various producers-everything from bar soap and shampoo to cameras
and stereo equipment-that is sold in retail stores on U.S. Navy bases and Navy ships.
C.D. Jamison owns the products it resells and provides all the wholesaling functions.
C.D. Jamison is a(n):
A. Manufacturer sales branch.
B. Agent wholesaler.
C. Single-line wholesaler.
D. Specialty wholesaler.
E. General merchandise wholesaler.
Which of the following statements is NOT good advice for a marketing manager
regarding media selection?
A. “The advertising media should support the promotion objectives.”
B. “Choose media that reaches the target market.”
C. “Remember that not all media are equally effective.”
D. “Target the mass market whenever possible.”
E. All of these statements are good advice.
Manufacturers’ agents:
A. don’t cost the producer anything until something sells.
B. aren’t very useful for introducing new products.
C. usually perform storing and transporting functions.
D. usually handle the competing lines of several manufacturers.
E. All of these alternatives are correct for manufacturers’ agents.
To compete more successfully with its many competitors offering packaged cookies,
Famous Amos added its own line of “extra chunky” premium cookies. This seems to be
an effort at:
A. combination.
B. market penetration.
C. market development.
D. product development.
E. diversification.
A firm which makes stereo radios and CD players for car manufacturers who install
them directly in their new cars is selling:
A. component parts.
B. supplies.
C. component materials.
D. installations.
E. accessory equipment.
Transporting cost as a percentage of selling price is lowest for:
A. Sand
B. Factory machinery
C. Pharmaceuticals
D. Chemicals
E. Cabbage
While doing an analysis, Sara realizes that close to 80 percent of her company’s
revenues comes from only 20 percent of her customers. This finding substantiates
A. the iceberg principle.
B. the sales paradox.
C. the 80/20 rule.
D. the standard markup rule.
E. the fishbone rule.
Any increase in profit contribution that a strategy generates, without increasing capital
invested,
A. is an impossible task.
B. increases the firm’s return on investment.
C. reduces shareholder value.
D. increases the debt to equity ratio.
E. increases the risk associated with that strategy.
When a customer goes online to register Adobe’s Acrobat Reader, the Web page
promotes other related products, including its popular Photoshop software. This is an
example of:
A. Product development.
B. Screening opportunities.
C. Mass marketing.
D. Differentiation.
E. Market penetration.
Insta-Mark Inc. makes custom-imprinted three-ring binders for business customers. Its
prices are: $4.00 per binder for a single order of up to 50 binders; $3.50 per binder for a
single order of 51 to 100 binders; and $3.00 per binder for a single order over 100
binders. Insta-Mark is using a:
A. Seasonal discount.
B. Cash discount.
C. Cumulative quantity discount.
D. Noncumulative quantity discount.
E. Basic list price.
Nike, Inc. markets several types of athletic shoes, along with clothing and fitness
equipment. In other words, Nike has
A. product components.
B. a battle of the brands.
C. no product assortment.
D. many product classes.
E. several product lines.
Which of the following practices would suggest that Acme Tools practices a marketing
orientation:
A. sets inventory levels with customer requirements and costs in mind.
B. sells products that it can make easily for its customers.
C. focuses its advertising efforts on product features and how products are made.
D. views customer service as an activity required to reduce consumer complaints.
E. ends its relationship with customers when a sale is made.
In the idea generation stage of the new-product development process
A. many new ideas in business markets come from competitors.
B. customers are given new products to test.
C. a S.W.O.T. analysis helps evaluate new product ideas.
D. a firm decides which ideas to pursue based on return on investment screening.
E. final ROI estimates are done.
A trademark or brand name can become public property if:
A. the owner doesn’t renew the registration each year.
B. it becomes a common descriptive word for the product.
C. the owner doesn’t register it under the Lanham Act.
D. it is sold in international markets.
E. All of these alternatives are correct.
An advertising manager is trying to decide what words to use in a magazine ad for the
new Ford Focus. In the traditional communication model, the ad manager is the:
A. Source.
B. Receiver.
C. Noise.
D. Encoder.
E. Decoder.
Good salespeople:
A. Help customers buy.
B. Are never the only link between the firm and its customers.
C. Are not part of the marketing information function for the firm.
D. Are not expected to be marketing managers in their own territories.
E. All of these alternatives are correct.
The total market value of goods and services provided in a country’s economy per year
by both residents and nonresidents of that country is:
A. Gross domestic product.
B. Gross national product.
C. Gross national income.
D. Gross domestic income.
E. Gross disposable income.
A(n) _____ is a special kind of warehouse designed to speed the flow of goods and
avoid unnecessary storing costs.
A. gateway for inventory
B. RFID warehouse
C. UPC storage facility
D. distribution center
E. shopping mall
At Priceline’s website, visitors can specify the desired price they’re willing to pay for a
hotel in Chicago. Priceline then electronically forwards the price to hotels until one
accepts the offer. What pricing policy is Priceline using?
A. Introductory price
B. Bundle price
C. Cash discount price
D. Quantity discount price
E. Flexible price
When a company becomes aware that a new product is being test marketed by one of its
competitors in St. Louis, it decides to create a similar product and rush it to market.
This company can be described as a(n):
A. copycat.
B. innovator.
C. me-too imitator.
D. first mover.