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Trusted Wholesalers is a company that purchases products produced in Mexico and
sells them to companies based in the United States and Canada. Management at Trusted
Wholesalers would most likely be interested in becoming experts in the policies
developed by ________.
A) the EU
B) NAFTA
C) CAFTA-DR
D) APTA
E) the BRIC countries
Answer:
________ sell standard merchandise at lower prices by accepting lower margins and
selling higher volume.
A) Merchant wholesalers
B) Discount stores
C) Full-service retailers
D) Limited-service retailers
E) Factory outlets
Answer:
Which of the following is one of the primary goals of reminder advertising?
A) maintain customer relationships
B) build brand preference
C) correct false impressions
D) inform the market of a price change
E) restore company image
Answer:
La Belle released a cut glass bottle of perfume at $299 per item, even though its major
competitor prices its signature scent at $99 per item. La Belle reasons that customers in
search of luxury goods will prefer its product because they are likelier to believe that
high price indicates superior quality. What price adjustment strategy is evident in its
reasoning?
A) seasonal pricing
B) time-based pricing
C) captive product pricing
D) psychological pricing
E) location-based pricing
Answer:
A particular firm added three new products earlier this year to increase variety for
customers. Two of the products failed to reach the minimal sales quota. Which of the
following is LEAST likely to have been the cause of their failure?
A) The products were priced too high.
B) The products were advertised incorrectly.
C) Competitors fought back harder than expected.
D) Product research was too extensive.
E) The product development costs were high.
Answer:
Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer
Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the
other, The Landing was an immediate hit with weekend lake visitors and local residents
alike. In the summer, boaters parked at the piers and bought all their fishing needs, such
as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter
months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot
coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a full-fledged residential area. Many of the
houses, which were built as cottages in the 1950s and 1960s, were remodeled into
residential homes. By the end of the 1970s, the days of small motorboats and 10
mile-per-hour speed limits were gone; skiing and fast speedboats became the rage.
Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing
could not compete with larger local retailers. He eventually enlarged the sandwich
counter, transforming the bait shop and grocery into a restaurant with a full menu
typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I
still had a summer crowd that relied on us for their fishing needs, but we couldn't
survive a whole year on four months of profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became
upscale. "I could see that people were spending more on their speed boats than what
they had originally paid for their cottages!" Casey exclaimed. Many of the cottages
were inherited by children and grandchildren of the original owners. Once again, the
scene started to change as many of the lake houses were used only as weekend lake
homes. Unlike the previous generation, a vast number of the current owners could
afford to live closer to their jobs while maintaining lake homes. "At this point, business
wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing
into a bar with a lounge area. "The change might have been too drastic," Casey said,
"but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces."
Which of the following is the macroenvironmental force that has had the greatest effect
on The Landing?
A) the demographic environment
B) the technological environment
C) marketing intermediaries
D) the political environment
E) citizen-action publics
Answer:
Neutron Inc. is conducting a business analysis to determine which of the many newly
developed apps should be released. To estimate sales, the company must ________.
A) conduct surveys of competitors
B) exclusively consider the government's opinions
C) consider the sales history of similar products
D) apply the PLC concept to industry sales
E) opt for business process reengineering
Answer:
Today's retailers increasingly adopt environmentally sustainable practices. Which of the
following is NOT one of these practices?
A) working with channel partners to reduce their environmental impact
B) cutting back on recycling programs
C) greening up their stores and operations
D) launching programs to help customers be more responsible
E) promoting more environmentally responsible products
Answer:
HP's advertising agency assembles words and illustrations into an advertisement that
conveys the company's intended brand message. In the context of the communication
process, HP is ________.
A) messaging
B) decoding
C) sending
D) encoding
E) responding
Answer:
________ involves setting prices based on the costs for producing, distributing, and
selling the product plus a fair rate of return for effort and risk.
A) Value-based pricing
B) Competition-based pricing
C) Cost-based pricing
D) Penetration pricing
E) Break-even pricing
Answer:
Samsung and Apple actively generate new ideas, relentlessly pursue new solutions, and
quickly work to get new products to market. They serve customers who want
state-of-the-art products and services, regardless of the costs in terms of price or
inconvenience. Which of the following value disciplines is illustrated from this
example?
A) operational excellence
B) customer intimacy
C) product leadership
D) product activation
E) product binning
Answer:
When amusement parks charge customers for admission and later for food and
beverages, they are following a ________ pricing strategy.
A) by-product
B) product line
C) penetration
D) skimming
E) two-part
Answer:
A good brand name should most likely be ________.
A) trendy
B) complex
C) long
D) conventional
E) distinctive
Answer:
Which of the following would most likely improve coordination between marketing and
sales?
A) Salespeople should directly participate in the development of new products.
B) Salespeople should participate in marketing planning sessions by sharing firsthand
customer knowledge.
C) The sales force should strategize promotional strategies and be the primary decision
makers about marketing.
D) Marketing managers should field test new promotion strategies before the sales
team.
E) The marketing and the sales departments should conduct annual job rotations.
Answer:
All of the following are forms of traditional direct marketing EXCEPT ________.
A) personal selling
B) point-of-purchase promotion
C) telemarketing
D) direct-mail marketing
E) kiosk marketing
Answer:
Loft Industries sells roof trusses to contractors and builders and is currently looking for
honest feedback on its services. However, in the past, most of its efforts to procure
feedback from customers did not yield any meaningful data. According to the marketing
managers of Loft Industries, feedback was more polite than honest. Which of the
following contact methods should Loft Industries most likely use to maximize its
chances of receiving honest and impersonal feedback?
A) online focus groups
B) telephone interviews
C) mail questionnaires
D) group interviews
E) personal interviews
Answer:
________ products give both high immediate satisfaction and high long-run benefits.
A) Deficient
B) Pleasing
C) Desirable
D) Salutary
E) Threatening
Answer:
TRUSTe, a nonprofit self-regulatory organization, works with other companies to audit
online privacy and security measures. It lends its TRUSTe privacy seal to all the
following communication channels that meet its privacy and security standards
EXCEPT ________.
A) mobile apps
B) e-mail marketing
C) telemarketing
D) Web sites
E) social media
Answer:
Which of the following is the most effective way for a company to ship bulky,
non-perishable products if its key requirement is low price?
A) pipelines
B) air transport
C) trucks
D) water carriers
E) piggyback
Answer:
A person's buying choices are influenced by four major psychological factors. Which of
the following is NOT one of these factors?
A) motivation
B) perception
C) association
D) learning
E) beliefs
Answer:
Marketers who use ________ often segment their markets by consumer lifestyles and
base their marketing strategies on lifestyle appeals.
A) demographic segmentation
B) geographic segmentation
C) benefit segmentation
D) psychographic segmentation
E) occasion segmentation
Answer:
Which of the following is a price adjustment strategy?
A) product bundle pricing
B) by-product pricing
C) product line pricing
D) optional product pricing
E) discount and allowance pricing
Answer:
Which of the following demographic trends is the most likely cause for a rapid increase
in telecommuting?
A) the migration toward micropolitan and suburban areas
B) the migration from rural to metropolitan areas
C) the increasing number of traditional households
D) the growing percentage of married couples who do not have children
E) the declining number of manufacturing workers in today's workforce
Answer:
Richard, a salesperson, works for Wellington Steelworks. After researching a qualified
lead, Richard is preparing opening lines for meeting the customer for the first time.
Which step of the selling process is he about to enter?
A) follow-up
B) handling objections
C) approach
D) presentation
E) preapproach
Answer:
Babita Singh, a fifty-one-year-old schoolteacher from Los Angeles, believes that people
should choose a profession they like, which is an example of Babita's ________.
A) secondary belief
B) core belief
C) core value
D) work ethic
E) moral code
Answer:
A hickory rocking chair, handmade by an Amish woodcarver in Lancaster,
Pennsylvania from locally grown wood, is an example of a ________.
A) convenience product
B) capital item
C) specialty product
D) service
E) product attribute
Answer:
Which of the following is a disadvantage of using blogs as a marketing tool?
A) The blogosphere is cluttered and difficult to control.
B) Advertising on a blog is typically expensive and time consuming.
C) Using blogs as a marketing tool offers minimum reach to a target audience.
D) Blogs, when used as a marketing tool, have a low rank in web directories and search
engines.
E) Blogs do not provide the kind of personalized approach that today's marketers are
looking for.
Answer:
The marketing world is most likely embracing ________ because consumers wield
greater power now with many platforms for airing and sharing their brand views with
other consumers.
A) partner relationship management
B) supply chain management
C) customer-managed relationships
D) market segmentation
E) consumer ethnocentrism
Answer:
________ requires finding the major advantages people look for in a product class, the
kinds of people who look for each positive aspect of a product, and the major brands
that deliver it.
A) Gender segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Geographic segmentation
E) Age and life-cycle segmentation
Answer:
________ is the act of obtaining a desired object from someone by offering something
in return.
A) Valuation
B) Exchange
C) Market offering
D) Confiscation
E) Donation
Answer:
Though the ________ method of setting an advertising budget is simple to use and
helps management think about the relationships among promotion spending, selling
price, and profit per unit, it wrongly views sales as the cause of promotion rather than
the result.
A) percentage-of-sales
B) integrated
C) competitive-parity
D) objective-and-task
E) regression
Answer:
Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to
________ other stores.
A) align itself with
B) differentiate itself from
C) cluster with
D) affect the store atmosphere of
E) converge with
Answer:
Which of the following is true of a pure competitive market?
A) A single seller has a major effect on the current and future market price.
B) Companies spend significantly on marketing research and product development.
C) The advertising budget of companies is usually huge.
D) Sellers try to develop differentiated offers for different customer segments.
E) Sellers spend little time on marketing strategy.
Answer:
A market nicher can most likely specialize along all of the following lines EXCEPT
________.
A) specific end users
B) unique products
C) customized services
D) quality-price
E) mass marketing
Answer:
What are the advantages of multichannel distribution systems?
Answer:
Why are companies increasingly turning to third-party logistics providers (3PLs)?
Answer:
Why are printed catalogs still thriving in the face of the growing popularity of
Web-based catalogs?
Answer:
Briefly explain mass customization.
Answer:
Why would a producer use wholesalers rather than sell directly to retailers or
consumers?
Answer:
What are the noneconomic criteria that influence government buying?
Answer:
In what way does the government regulate pricing?
Answer:
Describe the three decisions involved in designing a sample.
Answer:
How can sales promotion be accomplished through samples?
Answer:
Explain the factors involved in setting international pricing.
Answer:
How can firms that use new direct marketing technologies avoid backlash from
consumers who view such marketing as an invasion of privacy?
Answer:
Briefly describe the eight steps in the business buying process.
Answer:
Briefly explain the functions of a customer insights team.
Answer:
Why is the term value delivery network a more relevant expression to use than the term
supply chain or demand chain ?
Answer:
What is the follow-up step of the selling process? Why is it important?
Answer:
Describe the levels of service that retailers can offer. Provide an example of each type
of retailer.
Answer:
