Which of the following sets the lower limit for a product’s pricing?
A) product costs
B) profits
C) competition
D) elements of the product mix
E) consumer perceptions of value
Answer:
Introducing a new product into the market is called ________.
A) test marketing
B) segmentation
C) product development
D) commercialization
E) market penetration
Answer:
According to the BCG matrix, products or businesses with a low share of market in a
high-growth industry are considered ________.
A) dogs
B) cash cows
C) black holes
D) stars
E) question marks
Answer:
Which of the following is a form of online advertising?
A) direct mail
B) rich media ad
C) toll-free number
D) search-related ad
E) printed catalog
Answer:
Household Storez, a local retail store, claims to offer better products at lower prices
than other retail stores. In this case, the firm’s positioning reflects a ________ value
proposition.
A) more-for-the same
B) more-for-less
C) same-for-less
D) more-for-more
E) same-for-more
Answer:
________ pricing occurs when a seller states prices or price savings that mislead
consumers or are not actually available to consumers.
A) Predatory
B) Psychological
C) Deceptive
D) Cost-plus
E) Allowance
Answer:
A product line is most likely too short if managers can ________.
A) increase profits by dropping items
B) decrease costs by adding items
C) increase market share by dropping items
D) decrease costs by dropping items
E) increase profits by adding items
Answer:
Brand differences are worth promoting if they satisfy certain criteria. What are these
criteria?
Answer:
________ refers to the portion of the customer’s purchase that a company gets in its
product categories.
A) Value proposition
B) Share of customer
C) Brand equity
D) Customer lifetime value
E) Customer equity
Answer:
Compare and contrast closed-ended questions and open-ended questions for gathering
data.
Answer:
Rent, electricity, and executive salaries that do not vary with production or sales level
are referred to as ________ costs.
A) fixed
B) variable
C) break-even
D) target
E) promotional
Answer:
The use of traditional business marketing concepts and tools to create behaviors that
will benefit individual and societal well-being is called ________ marketing.
A) person
B) green
C) non-profit
D) social
E) traditional
Answer:
When viewing the market from a buyer’s point of view, “communication” corresponds
to the ________ component of the marketing mix.
A) people
B) price
C) product
D) promotion
E) place
Answer:
Fred’s faith in Asics, his favorite brand of running shoes, makes him consider other
offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each
new product carefully before adopting it. Fred is an opinion leader in his social
networking community and best described as a(n) ________.
A) lagging adopter
B) innovator
C) early adopter
D) early mainstream adopter
E) late mainstream adopter
Answer:
________ pricing involves setting prices based on the expenses involved in producing,
distributing, and selling a product plus a fair rate of return for a company’s effort and
risk.
A) Competition-based
B) Value-added
C) Cost-based
D) Good-value
E) Demand-based
Answer:
Hollingsworth is a retail company that is planning to release a new line of luxury
personal care products. Its managers are now reviewing the sales history of similar
products and conducting marketing surveys to estimate minimum and maximum sales
for the product. In which of the following stages of the new product development
process is the product?
A) test marketing
B) idea screening
C) business analysis
D) marketing strategy development
E) concept testing
Answer:
In which of the following cases is little or no test marketing most likely recommended
for a new product?
A) when the product requires a major investment
B) when management is unsure of the projected demand for the product
C) when the risks associated with introducing the product are high
D) when management is unsure of the marketing program for the product
E) when the costs of developing and introducing the product are low
Answer:
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
Answer:
Causal research is used to ________.
A) test hypotheses about cause-and-effect relationships
B) gather preliminary data to define problems and their underlying causes
C) collect information on the demographics of customers
D) collect information on the attitudes of consumers
E) generate hypotheses about the causes of a marketing problem
Answer:
Campbell is one of the oldest retailers in the country. While the service offered at
Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds,
overstocks, and closeouts occasionally including expensive gadgets and jewelry. Posco,
a new chain of retail stores, offers products that are similar to Campbell’s offerings;
however, Posco is known for encouraging customers to ask questions and for providing
service representatives to assist customers in the purchasing decision process. From this
scenario, which of the following statements is most likely true?
A) Posco fails to differentiate itself from Campbell through the services mix.
B) Posco’s product assortment helps differentiate it from Campbell.
C) Both Campbell and Posco fail to identify the needs and wants of target markets.
D) Campbell has not been able to differentiate itself on the basis of product assortment.
E) Posco better utilizes the services mix to differentiate itself from Campbell.
Answer:
Consumers rely less on price to judge the quality of a product when they ________.
A) lack information about the product
B) are unable to research the product
C) have prior experience with the product
D) are unable to judge the quality of the product
E) rely on cues from sellers to differentiate a high or low price
Answer:
Under Armour’s decision to add athletic shoes to its apparel line in 2006 is an example
of a ________ strategy.
A) market penetration
B) market development
C) downsizing
D) diversification
E) product development
Answer:
Surf’s Up, a family-owned business, offers a free surf lesson with the purchase of any
surfboard over $200 during the month of May. This is an example of which promotion
mix element?
A) direct and digital marketing
B) public relations
C) advertising
D) personal selling
E) sales promotion
Answer:
Rug Designs Inc, a manufacturer of large area rugs, markets its products throughout the
United States using a network of regional sales offices. They are using a ________
sales-force structure.
A) market
B) customer
C) product
D) regional
E) territorial
Answer:
M&Ms engages DirecTV or Dish Network viewers in a candy themed video game
through the arrow keys on their television remotes. This is an example of ________
advertising.
A) virtual world
B) interactive TV
C) direct-response TV
D) podcast
E) e-catalog
Answer:
Specialty products are consumer products and services that customers generally buy
________.
A) to conduct business
B) frequently and immediately
C) based on ready availability
D) without making comparisons
E) with minimal effort
Answer:
Which of the following is most likely a characteristic of the Millennial generation?
A) They have very little knowledge of using digital media.
B) They are a smaller population than Generation X.
C) They are the wealthiest generation in the United States to date.
D) They are more likely to engage with brands using mobile or social media.
E) They typically avoid using technology while buying products.
Answer:
Customers who are classified as true believers ________.
A) are attracted to a company’s competitor’s deals and offers
B) have needs and wants that do not fit a company’s offerings
C) are not very profitable for a company
D) tell others about their good experiences with a company
E) are projected to be less loyal to any brand
Answer:
________ occurs when two established brand names of different companies are used on
the same product.
A) Licensing
B) Co-branding
C) Private branding
D) Franchising
E) Brand positioning
Answer:
The simplest way to enter a foreign market is through ________.
A) joint ownership
B) exporting
C) direct investment
D) licensing
E) contract manufacturing
Answer:
A category of ethnographic research used to observe consumers in a natural context in
virtual and mobile spaces is referred to as ________.
A) interethnography
B) netnography
C) microethnography
D) macroethnography
E) demography
Answer:
Which kind of marketing involves sending an offer, announcement, reminder, or other
item to a person at a particular postal address?
A) kiosk marketing
B) direct digital marketing
C) mass marketing
D) direct-mail marketing
E) telephone marketing
Answer:
Which of the following is true of focus group discussions?
A) They usually employ large samples.
B) Consumers’ facial expressions are hidden.
C) Results can be easily generalized to an entire population.
D) The quantitative data can be evaluated quickly and economically.
E) Consumers are not always honest and open about their opinions.
Answer:
Greyzone, a company that creates customized household furniture, is based in Terrania
and is looking to enter other countries as well. The company identifies the country of
Nyevka as a good option because the entry barriers for new companies are low in
Nyevka. Which statement indicates that Greyzone follows a diversification strategy?
A) Greyzone does not modify its products for the Nyevkan market.
B) Greyzone leaves the Terranian market entirely in order to establish itself in the
Nyevkan market with its current products.
C) Noting that Nyevka lacks well-established suppliers of office equipment, Greyzone
begins to manufacture and supply office equipment.
D) Greyzone manufactures furniture in Terrania and ships it to Nyevka without setting
up outlets in Nyevka.
E) Noting that production costs are lower in Nyevka, Greyzone shifts its production
operations entirely to Nyevka.
Answer:
When a company issues a press release to announce a sizable donation to a national
charity, they are using ________ to generate goodwill and maintain a positive corporate
image.
A) personal selling
B) sales promotion
C) public relations
D) direct and digital marketing
E) advertising
Answer: