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Sales promotion involves building up a good corporate image, and handling or heading
off unfavorable rumors, stories, and events.
Answer:
The goal of competitive marketing intelligence is to evaluate and prevent high
employee turnover.
Answer:
Abel is considering whether or not to get an e-reader. He has read online reviews of
three different kinds of readers and has talked with two friends who own e-readers.
Abel is at the awareness stage of the new product adoption process.
Answer:
Entrepreneurial marketing exclusively involves developing formal marketing strategies
and adhering to them closely.
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Producers use intermediaries because they create greater efficiency in making goods
available to target markets.
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Millennials comprise the most financially affluent group in America today.
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Acquisition involves the purchase of a whole company, a patent, or a license to produce
someone else's product.
Answer:
An organization's department follows a customer-centered sense-and-respond
philosophy. The department is most likely practicing the product concept.
Answer:
Gender segmentation has long been used in clothing, cosmetics, toiletries, and
magazines.
Answer:
Using a push strategy, the producer directs its marketing activities (primarily
advertising and consumer promotion) toward final consumers to induce them to buy the
product.
Answer:
In the business buying process, the buyer and seller are relatively less dependent on
each other.
Answer:
Electronic data interchange is the digital exchange of data between organizations, which
primarily is transmitted via the Internet.
Answer:
In a territorial sales force structure, as each salesperson travels within a limited
geographic area, travel expenses are relatively small.
Answer:
Some industries commonly use two-part pricing, breaking the price down into a fixed
fee and a fixed usage rate.
Answer:
Sustainable marketing calls for meeting the present needs of consumers and businesses
while also preserving or enhancing the ability of future generations to meet their needs.
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The meaning of value is perceived identically by all consumers.
Answer:
Megaretailers have shifted the balance of power between retailers and producers, giving
retailers more power.
Answer:
A cigarette is an example of a salutary product.
Answer:
Using an undifferentiated marketing strategy, a firm decides to target several market
segments and designs separate offers for each.
Answer:
Environmental sustainability concerns have declined steadily over the past three
decades.
Answer:
Digital catalogs eliminate printing and mailing costs.
Answer:
Product differentiation refers to the way a product is defined by consumers on
important attributesthe place the product occupies in consumers' minds relative to
competing products.
Answer:
In the customer sales force structure, each salesperson is assigned to an exclusive
geographic area and sells the company's full line of products or services to all
customers in that territory.
Answer:
The aim of advertainment is to make ads so entertaining or useful that people want to
watch them.
Answer:
The World Trade Organization established the The General Agreement on Tariffs and
Trade, which replaced the WTO in 1995 and now oversees the original WTO
provisions.
Answer:
Attributes are the most desirable level for brand positioning because competitors can
easily copy attributes.
Answer:
Competitive marketing intelligence is the systematic collection and analysis of publicly
available information about consumers, competitors, and developments in the
marketplace.
Answer:
Marketers often involve actual customers in product testing.
Answer:
Firms that practice product differentiation gain competitive advantage through the way
they design their channel's coverage, expertise, and performance.
Answer:
A company cannot stretch its product line downward.
Answer:
Because of strict consumer privacy regulations, invasion of privacy is no longer a
concern for the direct marketing industry.
Answer:
In a straight rebuy, the buyer wants to alter product specifications, prices, terms, or
suppliers.
Answer:
Spam is unsolicited, unwanted commercial e-mail messages that clog up users'
e-mailboxes.
Answer:
Salespeople do not represent customers to the company.
Answer:
Which of the following is true about the territorial sales force structure?
A) The territorial sales force structure does not define each salesperson's job clearly.
B) Salespeople specialize in selling only a small portion of the company's products.
C) In a territorial sales force structure, separate sales forces are set up for different
industries.
D) Travel expenses are relatively small as each salesperson travels within a limited
geographic area.
E) In a territorial sales force structure, separate sales forces are often established to
handle a single, large account in every territory.
Answer:
Companies can identify their competitors from both ________ points of view.
A) industry and market
B) product and customer
C) customer and location
D) location and product
E) product and strategy
Answer:
When a company customizes its merchandise store by store to meet shopper needs, it is
practicing ________ marketing.
A) niche
B) mass
C) local
D) segmented
E) trigger-based
Answer:
Which of the following is an example of a convenience product?
A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator
Answer:
If a consumer's drive is strong and a satisfying product is near at hand, the consumer is
likely to purchase the product at that time. If not, the consumer may store the need in
memory or undertake ________.
A) consumer ethnocentrism
B) buyer's remorse
C) a need recognition
D) an information search
E) cognitive dissonance
Answer:
Business markets are similar to consumer markets in that ________.
A) the nature of the buying unit is the same for both
B) the decision processes involved in both the markets are same
C) both involve people who assume buying roles and make purchase decisions to
satisfy needs
D) both share the same market structure
E) the types of decisions are fairly consistent in both the markets
Answer:
Family is one of the ________ factors that influence consumer behavior.
A) regional
B) social
C) personal
D) psychological
E) business
Answer:
A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to
directly sell its product in the market for $12. How many units must it produce and sell
to break even?
A) 20,000
B) 25,000
C) 30,000
D) 35,000
E) 40,000
Answer:
Refer to the scenario below to answer the following question(s).
Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to
industry design changes and consumer demands, for the next financial year, six of those
stampings will require a slight change: two will have an extra hole punched through the
side, two will require an extra plating process, and two will require an additional weld
operation.
In the meantime, purchasing agent Richard Koehl has been asked to reduce the number
of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price
quotations and steel samples from his current suppliers, Richard faced a dilemma. Until
now, he had selected his suppliers based on quality and price, but the major
consideration had been the type of steel required and the specialized production
processes of his respective suppliers. Not all of Alpha's suppliers could produce the
exact grades of steel needed; some suppliers were better at producing certain types of
steel than others.
Richard contacted several employees at Alpha who had worked with the various types
of steel in the past. The quality control manager and line inspector, for example, could
help to determine which suppliers had the capabilities of producing specific types of
steel. The production control manager could provide input regarding which types of
steel worked best in which presses. The warehouse foreman gave inputs regarding how
long various types of steel could be held in inventory before rust spots began to form on
their surfaces. Each person contributed the necessary information to help Richard in
making his decision.
The management's directive to reduce the number of steel suppliers refers to the
influence of ________ factors affecting the business buying behavior of Alpha.
A) political
B) organizational
C) interpersonal
D) individual
E) cultural
Answer:
A ________ creates a long-term relationship in which the supplier promises to resupply
the buyer as needed at agreed prices for a set time period.
A) blanket contract
B) request for proposal
C) supplier proposal
D) change order
E) noncompete clause
Answer:
Which of the following is true about e-mail marketing messages?
A) E-mail marketing messages involve sending an offer, announcement, reminder, or
sample to a person living at a particular address.
B) E-mail marketing messages involve connecting directly with carefully targeted
consumers, exclusively on a one-to-one, interactive basis.
C) E-mail marketing messages are effective in reaching the desired target market and
result in low costs.
D) E-mail marketing messages cost more per thousand people reached than mass media
such as television or magazines.
E) E-mail marketing messages create a stronger emotional connection with the
customers compared to traditional direct mail.
Answer:
Which of the following product mix pricing strategies involves pricing products that
can only be used with the main product?
A) by-product pricing
B) product bundle pricing
C) captive product pricing
D) product line pricing
E) optional product pricing
Answer:
________ help companies stock and move goods from their points of origin to their
destinations.
A) Retailers
B) Physical distribution firms
C) Marketing services agencies
D) Resellers
E) Suppliers
Answer:
Which of the following wholesaler's channel functions is demonstrated when a buyer
receives quicker delivery because wholesalers are located closer than producers?
A) financing
B) transportation
C) buying and assortment building
D) warehousing
E) risk bearing
Answer:
Happy Pets, a company manufacturing pet foods and accessories, created a membership
club for its regular customers called "I Love My Pet." This group consists of animal
lovers selected by the company to complete product-related polls, chat with product
developers, and provide feedback about specific products. Which of the following best
describes "I Love My Pet"?
A) primary group
B) immersion group
C) mob
D) dyad
E) triad
Answer:
A(n) ________ is the set of actual and potential buyers of a product or service.
A) market
B) control group
C) subsidiary
D) focus group
E) audience
Answer:
P&G has sold off a number of lesser or declining brands such as Oxydol detergent and
Jif peanut butter. In these examples, management decided to ________ the products.
A) modify
B) maintain
C) drop
D) harvest
E) franchise
Answer:
The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and
each table is covered with a white linen cloth. The colors are limited to earth tones with
an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant
melody that seems familiar but unrecognizable. The smells are extraordinarily varied.
This is a description of the restaurant's ________.
A) promotions
B) target
C) atmosphere
D) services mix
E) product assortment
Answer:
In which of the following scenarios would high-pressure selling tactics typically be
most advantageous for marketers?
A) selling situations with long-time customers
B) selling situations with new customers with a high likelihood of becoming repeat
customers
C) selling situations with a company's most highly valued customers
D) selling situations with one-time customers
E) selling situations with dissatisfied customers
Answer:
Refer to the scenario below to answer the following question(s).
Jason West, owner of A1 Cleaning, started his enterprise in 2001. Jason's primary focus
had been on office cleaning for large corporations. But in recent months, Jason has seen
a decline in demand for his office cleaning services. Surprisingly, the competitive
environment appeared relatively stable with no new competitors. However, Jason knew
that office cleaning was a high-frequency service that is usually performed daily;
therefore, competitors must have been doing something to attract his customers.
Building a competitive advantage seemed to be the only option to offset competition.
But as Jason pondered over his dilemma, he realized that prior to building his
competitive advantage he needed to better understand how customers assessed service
quality and what they look for in a superior cleaning service.
Jason developed a research plan. First, he gathered information about his competitors,
primarily through pamphlets and Web sites, as well as through a few phone calls in
order to find out exactly what the competitors offered in their cleaning packages. In
addition, Jason obtained from the Chamber of Commerce an updated list of local
corporations. He planned on sending written questionnaires to them.
Though the list of corporations contained 141 local company names, Jason chose to
survey 75 of them. To better understand customer service expectations between both
small and large corporations, Jason divided his surveys into two categories. The survey
questions were designed to extract specific data from respondents with regard to service
quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he
was flexible and would aim his efforts differently if needed.
If Jason used mostly open-ended questions in the survey to encourage people to answer
in their own words, he is performing ________ research.
A) focus group
B) qualitative
C) experiential
D) causal
E) exploratory
Answer:
Which of the following is an external factor that affects pricing decisions in a company?
A) the company's overall marketing strategy
B) the nature of the market
C) the organizational objectives of the company
D) elements of the company's marketing mix
E) the annual advertising budget of rival firms
Answer:
A market segment that is large enough or profitable enough to serve is ________.
A) measurable
B) accessible
C) substantial
D) profitable
E) differentiable
Answer:
When consumers are highly involved with the purchase of an expensive product and
they perceive significant differences among brands, they most likely will exhibit
________.
A) consumer capitalism
B) complex buying behavior
C) consumer ethnocentrism
D) dissonance-reducing buying behavior
E) variety-seeking buying behavior
Answer:
________ refers to a measure of the sensitivity of demand to changes in price.
A) Price elasticity
B) A demand curve
C) Price-value equation
D) Marginal utility
E) Income elasticity of demand
Answer:
A company sent a trained observer to watch and interact with consumers in their natural
environments in order to gain deeper insights on consumer needs. This is an example of
________.
A) viral marketing
B) survey research
C) ethnographic research
D) experimental research
E) niche marketing
Answer:
Tristan and Juliet, a newly married couple who intend to go to Egypt for their
honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they
have never seen Europe or used the services of Jizo before, they were largely dependent
on other customers' feedback and signals for service quality. Which of the following
characteristics of service is highlighted in this instance?
A) service intangibility
B) service inseparability
C) service variability
D) service perishability
E) service distinction
Answer:
Advertising campaigns involving issues ranging from health care, education, and
environmental sustainability to human rights and personal safety can be classified under
________ marketing.
A) corporate image
B) internal
C) social
D) place
E) person
Answer:
With an expected increase in ethnic diversity within the American population,
marketers are most likely to place a greater emphasis on ________.
A) geographic segmentation
B) targeted advertising messages
C) mass marketing
D) "do well by doing good" missions
E) corporate giving
Answer:
Which of the following marketing strategies should marketing managers focus on to
manage detailed information about individual customers and carefully manage
customer touchpoints to maximize customer loyalty?
A) customer divestment
B) customer-managed relationships
C) the societal marketing concept
D) partner relationship management
E) customer relationship management
Answer:
A ________ firm is one that, by operating in more than one country, gains marketing,
production, research and development, and financial advantages that are not available to
purely domestic competitors.
A) global
B) domestic
C) federally chartered
D) direct investment
E) free trade zone
Answer:
Which of the following statements is true of test marketing?
A) The amount of test marketing needed remains constant for each new product.
B) When the costs of developing and introducing the product are low, the company will
have to do significant test marketing.
C) Test marketing is seldom done on products that are risky.
D) Test marketing is seldom done when management is not sure of the product or its
marketing program.
E) Test marketing costs can be high, and it takes time that may allow competitors to
gain advantages.
Answer:
Rhodia invites tourists from all over the world to experience its pristine nature, clear
skies, and beautiful summertime climate. This exemplifies ________.
A) corporate image marketing
B) social marketing
C) place marketing
D) social engineering
E) negative brand equity
Answer:
Primary data consist of ________.
A) data that does not age
B) data obtained from the public domain
C) information collected for the specific purpose at hand
D) information that already exists somewhere, having been collected for another
purpose
E) information that is the least expensive and the easiest to obtain
Answer:
Many managers think that "doing things right," or ________, is as important as, or even
more important than, "doing the right things."
A) strategy
B) planning
C) positioning
D) implementation
E) targeting
Answer:
What does a call plan show?
Answer:
Many subcultures make up important market segments. Examples of three such
important subculture groups include Hispanic Americans, African Americans, and Asian
Americans. Describe the general shopping-related characteristics of each of these
groups.
Answer:
Briefly describe the history of legal concerns about packaging and labels.
Answer:
How are companies taking advantage of interactive technologies to tap consumers for
message ideas and actual ads? What are the benefits and disadvantages of
consumer-generated advertising?
Answer:
Explain the impact of the baby boomers, Generation Xers, Millennials, and Generation
Zers on today's marketing strategies.
Answer:
What are some of the limitations of observational research?
Answer:
What are pop-up stores? Provide an example to illustrate your answer.
Answer:
Many studies reveal that instead of "Americanizing" the world's cultures, the cultural
exchange between America and other countries goes two ways. Give two examples of
how America has been influenced culturally by foreign products or services.
Answer:
Describe the major types of buying situations.
Answer:
How can discount stores sell merchandise at lower prices?
Answer:
How do marketers respond to critics' accusations of planned obsolescence?
Answer:
Name the three value disciplines.
Answer:
What is cause-related marketing? Illustrate with examples.
Answer:
What are the major characteristics of government markets?
Answer:
Give examples of pure tangible goods.
Answer:
Discuss how small businesses and not-for-profit organizations can obtain market
insights economically.
Answer:
What is the difference between marketing planning and marketing implementation?
Answer:
What is a business portfolio? What are the steps involved in business portfolio
planning?
Answer:
