When foreign currencies can buy more U.S. dollars,
A. U.S. products are more expensive to foreign customers.
B. U.S. products are more expensive to U.S. customers.
C. U.S. products are less expensive to foreign customers.
D. economists consider it an indicator of an impending long-term economic upturn.
E. American consumers will buy in large quantities and stockpile in fear of an
impending economic crisis.
Answer:
The three primary types of product advertisements are __________.
A. pioneering, institutional, and informational
B. humor, sex, and fear
C. pioneering, competitive, and reminder
D. competitive, subliminal, and institutional
E. cognitive, affective, and behavioral
Answer:
Managing for long-run profits as a pricing objective implies that a company will
A. give up immediate profit in exchange for achieving a higher market share in hopes
of penetrating competitive markets.
B. maintain a given price range to ensure there is no loss of customers over time, even
if the profit margin declines.
C. invest excess cash in bonds and certificates of deposit in order to counteract any
inflationary economic changes in the future.
D. reinvest all profits into market or product research rather than returned to
shareholders.
E. drop all products, product lines, or divisions that cannot maintain their pricing goals.
Answer:
A channel captain refers to
A. a member of a distribution channel that takes control through hegemony (power is
not assigned, but assumed).
B. a channel member (producer, wholesaler, or retailer) who coordinates, directs, and
supports other channel members.
C. a channel team member known for his or her expertise in cutting through red tape.
D. a person responsible for implementing a firm’s a mission statement, linking all
members of the marketing channel through a common goal.
E. the person with greatest authority who represents his or her channel in the
distribution chain.
Answer:
Groupon built its business model on the premise that
A. consumers would be receptive to online sweepstakes.
B. businesses would be willing to post their 30-second TV advertising on a social
network.
C. consumers would want to “check in” and earn points and badges for visiting
businesses.
D. consumers would band together and try a new product or service if businesses would
offer lower prices to entice them to take advantage of a daily deal offered to them.
E. consumers would be willing to pay for fun and exciting online video games that are
playable on their smartphones and tablet devices.
Answer:
Deceptive pricing practices are outlawed by legislation and enforced by which federal
agency?
A. Consumer Protection Agency
B. U.S. Department of Justice
C. Federal Communications Commission
D. U.S. Department of Commerce
E. Federal Trade Commission
Answer:
The __________ stage of the product life cycle is characterized by rapid increases in
sales.
A. introduction
B. growth
C. maturity
D. decline
E. harvest
Answer:
Sally Beauty Supply sells products for hair, skin, and nail care as well as cosmetics. It is
most likely classified as which retail variation based on the considerable assortment of
beauty and personal care products in carries?
A. single-line
B. full service
C. full-line
D. limited service
E. limited-line
Answer:
__________ often come at the expense of __________ because a single customer
segment will likely require a variety of products, each of which will have to designed
and manufactured.
A. Product synergies; marketing synergies
B. Marketing synergies; product synergies
C. Supplier synergies; consumer synergies
D. Distributor synergies; supplier synergies
E. Marketing synergies; finance synergies
Answer:
The term that encompasses and organization’s employees, shareholders, board of
directors, suppliers, distributors, creditors, unions, government, local communities, and
customers is referred to as its
A. stakeholders.
B. stockholders.
C. competitors.
D. target audience.
E. organizational society.
Answer:
Cost-plus pricing refers to
A. summing the total unit cost of providing a product or service and adding a specific
amount to the cost to arrive at the price.
B. setting the price of a line of products at a number of different price points.
C. adding a fixed percentage to the cost of all items in a specific product class.
D. setting prices to achieve a profit that is a specified percentage of the sales volume.
E. increasing the price slightly to protect against undue profit losses from unforeseen
environmental forces.
Answer:
LED (light-emitting diode) light bulbs have been available for only a few years in low
lighting levels (lumens). LEDs are designed to replace incandescent and even compact
fluorescent light bulbs, in part because of a federal law that phases out incandescent
light bulbs in favor of more energy efficient ones. LED bulbs, which today can cost
about $10 to $15 for a 60-watt bulb, will last up to 20 years. In what stage of the
product life cycle is this product?
A. growth stage
B. decline stage
C. accelerated development stage
D. introduction stage
E. maturity stage
Answer:
In classifying social media, the degree of acoustic, visual, and personal contact between
two communication partners is referred to as __________, whereas the degree to which
a person’s thoughts, feelings, likes, and dislikes are made public is referred to as
__________.
A. self-disclosure; media richness
B. emotional value; social degree
C. media richness; self-disclosure
D. social degree; emotional value
E. media richness; user-generated content
Answer:
The best way to assess the effectiveness of all promotion expenditures during the past
year is to compute a __________.
A. break-even point
B. promotion-to-sales ratio
C. ROI
D. promotion-to-expenses ratio
E. advertising-to-sales promotion ratio
Answer:
The formula, Total revenue – Total cost or [(Unit price Quantity sold) – (Fixed cost +
Variable cost)] represents __________.
A. the value equation
B. the sales ratio
C. average revenue
D. the break-even point
E. the profit equation
Answer:
The size and number of JCPenney direct mail pieces like catalogs that are designed and
mailed to consumers would determine how much paper JCPenney needs to buy. This is
an example of __________.
A. derived demand
B. reciprocity
C. a tying agreement
D. derived supply
E. elastic supply
Answer:
A country’s income distribution is important because it gives a more reliable picture of a
country’s __________.
A. consumer tastes
B. taxable income
C. purchasing power
D. discretionary income
E. cost of living
Answer:
All of the following statements about price are true EXCEPT:
A. Small changes in price can have big effects on both the number of units sold and
company profit.
B. The price for a product or service must earn a profit for the company.
C. For most products and services, their prices are always the same.
D. The price must be right – in the sense that customers must be willing to pay it.
E. The price must generate enough sales dollars to pay for the cost of developing,
producing, and marketing the product.
Answer:
A similar understanding and knowledge that the sender and receiver apply to the
message so that it can be communicated effectively during the communication process
is referred to as __________.
A. common ground
B. field of experience
C. McLuhanism
D. hermeneutics
E. back translation
Answer:
Using an existing brand name to introduce a product that is new to the company into a
totally new, unfamiliar product category seems like a good idea. This is what
Cosmopolitan, purveyor of fashion magazines, did when it introduced its own
__________, which failed quickly.
A. aspirin
B. yogurt
C. disposable underwear
D. soda (soft drink)
E. perfume
Answer:
The ability to buy a soda from a vending machine demonstrates which element of the
marketing mix?
A. product
B. price
C. promotion
D. place
E. process
Answer:
All of the following are examples of direct marketing tools EXCEPT:
A. e-mail solicitations
B. telephone solicitations
C. Groupon
D. catalogs
E. direct response ads on TV
Answer:
An inventor for 3M, David Windorski questioned dozens of students about how they
study. They told him
A. that Scotch tape had outgrown its usefulness to students.
B. to make new products that have higher quality.
C. that the average backpack was already too heavy.
D. that it would be reasonable to put Post-it Flags together with a highlighter.
E. to determine the ratio of 3M products to study aid products of other competitors.
Answer:
Wholesalers who have a small warehouse from which they stock their trucks for
distribution to retailers are referred to as __________.
A. cash and carry wholesalers
B. truck jobbers
C. rack jobbers
D. drop shippers
E. manufacturer’s representatives
Answer:
Test screenings and tracking studies are examples of market research techniques used in
the movie industry to
A. estimate a production company’s potential market share.
B. identify prospective nominees for industry awards such as the Oscars.
C. create an advance market for the movie’s DVD release regardless of whether it is
successful in its theater release or not.
D. identify possible story lines and/or plots for future movie ventures.
E. reduce uncertainty and improve marketing actions.
Answer:
Even though there are hundreds of different languages and dialects, the three major
languages used in global diplomacy and commerce are
A. English, Japanese, and Chinese.
B. English, French, and Spanish.
C. Japanese, Spanish, and French.
D. Japanese, Spanish, and English.
E. Spanish, English, and Chinese.
Answer:
If a firm finds the demand for one of its products is inelastic, it can increase its total
revenues by
A. lowering its price.
B. increasing fixed costs only.
C. increasing variable costs only.
D. increasing both fixed and variable costs.
E. raising its price.
Answer:
Graham-Field Health Products makes hospital beds and wheelchairs from the
component parts and materials it buys. It sells these manufactured products to hospitals,
nursing homes, and retailers of health care products. Graham-Field Health Products
operates in a(n) __________ market.
A. consumer
B. government
C. service
D. industrial
E. reseller
Answer:
Sales promotions cannot be the sole basis for a promotional campaign because
A. all sales promotions have legal time limit restrictions to prevent unfair trade
practices.
B. gains from sales promotion are often temporary and sales drop off when it ends.
C. sales promotions are too costly and soon become a financial liability.
D. sales promotions are traditionally handled by outside firms and not the manufacturer,
which often results in a significant loss of profit.
E. consumers obtain an inflated impression of a product’s actual value or worth.
Answer:
A western clothing retail store marketing vice president is developing an advertising
budget using the objective and task method. She has the objective of clearing
slow-moving merchandise from her shelves and is trying to choose between using radio
ads or newspaper ads. Which of the following is an advantage of radio relative to
newspapers as a medium for achieving the objective?
A. better reach
B. more effective visuals
C. ads can be saved by consumers
D. better segmentation capability
E. more effective in conveying complex information
Answer:
One of the most popular means to gain consumer trial is through
A. demonstrations.
B. free samples.
C. press releases.
D. celebrity endorsements.
E. product diffusion.
Answer: