Successful marketers that understand the significance of word-of-mouth
communication seek out opinion leaders and try to encourage them to try their products
in the hope they will spread favorable word about them.
a. True
b. False
During the decoding process, the:
a. intensity of the transmission becomes stronger.
b. receiver attempts to convert signs or symbols into concepts and ideas. c. source
attempts to convert signs or symbols into concepts and ideas.
d. source provides feedback of an encoded message to the receiver.
e. receiver filters noise from the feedback.
If a product has an inelastic demand and the manufacturer raises its price:
a. total revenue will increase.
b. quantity demanded will decrease.
c. the demand schedule will shift.
d. the demand will become more inelastic.
e. total revenue will decrease.
Agents and brokers that facilitate and negotiate purchases but do not actually take title
to products are also known as _____.
a. contract wholesalers
b. commission wholesalers
c. hands-off intermediaries
d. contract negotiators
e. functional middlemen
When products are introduced from one nation into another, acceptance is more likely if
the two cultures are different.
a. True
b. False
Scenario 10.1
Use the following to answer the questions.
Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made
improvements on their razors offering many “firsts” such as the Mach3, the Sensor, and
the Fusion. For many years, women were forced to use razors designed primarily for
men, but often marketed to women by offering them in different colors and with
minimal modifications. In 1998, Gillette developed the Venus razor, based on the
Mach3 but made specifically for women. Gillette promoted the Venus razor heavily,
with television ads and other forms of media. The Gillette product line, now owned by
Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus
Embrace, which has additional blades and other modifications. In which of the
following classification of consumer products do shaving razors fall?
a. Convenience products
b. Shopping products
c. Substitute products
d. Specialty products
e. Accessory equipment
The technique of sampling in marketing research is the process of selecting
representative units from a total population (a sample) and being able to project the
characteristics of the total population from the sample considered.
a. True
b. False
Generally, sales promotion attempts to influence consumers to purchase products but is
not normally aimed at resellers.
a. True
b. False
Sam’s Club has developed a website that allows employees to create a profile and
connect with co-workers for the purpose of getting acquainted and building a
work-related network. This is an example of a(n)_____:
a. virtual reality.
b. podcast.
c. recruiting tool.
d. social network.
e. employment opportunity.
Running a big sale in order to generate enough cash flow to pay creditors is typical in a
situation in which a firm’s primary pricing objective is to:
a. maintain the status quo. b. increase profit.
c. survive.
d. increase market share. e. recover.
In order to be considered a market, people do not require:
a. a need or desire for a particular product. b. the ability to purchase the product.
c. an organization of their own to purchase the product. d. the willingness to use their
buying power.
e. the authority to buy the specific products.
Digital marketing can be viewed as a new distribution channel that helps businesses
increase efficiency.
a. True
b. False
Alpeco Inc., a manufacturer of motorcycles, helps to foster strong relationships between
riders and their motorcycles. Alpeco’s rivals will find it difficult to mimic this in the
foreseeable future. In this scenario, Alpeco Inc. has a(n) over its competitors.
a. effective competitive advantage
b. controllable advantage
c. comparative advantage
d. absolute advantage
e. sustainable competitive advantage
The preapproach is the first step in the personal selling process.
a. True
b. False
While planning a purchase of business desktop computers, Albertson Inc. asked
potential suppliers to provide information only on units with 8GB memory. As the
firm’s management evaluates this purchase, it finds that 8GB is inadequate for the
software programs used at the firm. In this instance, which of the following aspects of
the
buying decision process does the firm needs to modify?
a. Searching
b. Specification development
c. Alternative evaluation
d. Selection
e. Performance evaluation