Which type of private label brand carries no evidence of a retailer’s affiliation, is
manufactured by a third party, and is sold exclusively at the retailer?
a. A captive brand
b. A complementary brand
c. A cooperative brand
d. An exclusive brand
e. A generic brand
Answer:
At Walmart, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The
items, which were sold together, retailed at $28.50 but were marked down to $19.99.
The $19.99 is the:
a. revenue.
b. price.
c. profit.
d. liquidity value.
e. amortized value.
Answer:
Firms can be categorized by the type of purchasing strategy they use. ____ usually
contact familiar suppliers and place an order with the first that can meet product and
delivery requirements.
a. Strugglers
b. Actualizers
c. Optimizers
d. Satisficers
e. Experiencers
Answer:
Promotion is communication by marketers that informs, persuades, and reminds
potential buyers of a product in order to influence their opinion or elicit a response.
a. True
b. False
Answer:
Walmart
Walmart, the world’s largest retailer by revenue, announced that it will get back to its
founder’s roots by initiating more price cuts. Critics claimed that the giant was getting
away from its original focus because it posted relatively high gross profit margins. CEO
Mike Duke assuaged critics by saying Walmart’s $400 billion in sales will become even
larger because the price cuts will attract more customers and it will lower its costs of
goods sold.
Refer to Walmart. Which type of pricing strategy describes Walmart’s commitment to
offer consistently lower prices?
a. High”low pricing
b. Everyday low pricing
c. extreme value pricing
d. Prestige pricing
e. Marginal pricing
Answer:
Business buyers use a variety of criteria to evaluate alternative products and suppliers.
The three most important criteria, in order of importance, are:
a. price, sales support, and service.
b. quality, service, and price.
c. reputation, price, and capability.
d. price, delivery time, and product reliability.
e. service, quality, and reputation.
Answer:
Which of the following are examples of facilitating functions performed by wholesaling
intermediaries?
a. Sorting and storing
b. Risk taking and promotion
c. Assorting, accumulating, grading, and allocating
d. Researching and financing
e. Financial management and storing
Answer:
Communications between customers and organizations that occur in stores or at
information kiosks are called:
a. live interactions.
b. point-of-sale interactions.
c. empowerment points.
d. survey interactions.
e. product interactions.
Answer:
FishyBusiness
DNA testing has revealed that sushi bar customers are not always getting what they pay
for. Scientists at the American Museum of Natural History tested fish from 31 sushi
bars and found that the tuna coveted by many diners is often a cheaper substitute, a
banned fish, or an endangered species. This could be the result of an honest mistake in
the supply chain, or it could be a deliberate attempt to deceive buyers. However,
researchers have uncovered a DNA “bar code” that can accurately identify the type of
fish. While still a ways off, the scientist who developed the tuna DNA bar code
envisions a small device that can provide instantaneous species identification, which
will result in restaurants ultimately providing what their customers are demanding and
paying for.
Refer to Fishy Business. In the future, suppliers of fresh fish will be able to use
electronic bar codes to verify the fish species for members of the supply chain. This
information can be incorporated into the information technology used in the inventory
management and control business process. This information technology is called:
a. activity-based costing (ABC).
b. electronic data interchange (EDI).
c. benchmarking.
d. a materials-handling system.
e. procurement.
Answer:
Nellie’s boss sells merchandise through Internet auctions. He needs to mail a $1,500
hexagonal antique picture frame. He has instructed Nellie to buy packaging that will
make sure the oddly shaped frame arrives at its new owner’s home undamaged, but he
has not told her how or where she will find such packaging. Given that she frequently
has to purchase packaging supplies, what kind of purchase decision process would she
most likely employ?
a. High-involvement response behavior
b. Low-involvement decision making
c. Extensive decision making
d. Limited decision making
e. Routine response behavior
Answer:
Marketers have so far found few ways to integrate apps into their marketing strategies.
a. True
b. False
Answer:
____ is the process by which we exchange or share meanings through a common set of
symbols. People also assign meanings to feelings, ideas, facts, and attitudes.
a. Feedback
b. Promotion
c. Advertising
d. Publicity
e. Communication
Answer:
Having a global vision means that management recognizes and reacts to international
marketing opportunities, uses effective marketing strategies, and is aware of threats
from foreign competitors in all markets.
a. True
b. False
Answer:
A ____ sample is any sample in which little or no attempt is made to obtain a
representative cross section of the population.
a. frame
b. random
c. probability
d. nonprobability
e. representational
Answer:
____ in a CRM environment involves collecting customer information through
comments and feedback on product and service performance.
a. Uncovering
b. Researching
c. Learning
d. Recording
e. Absorbing
Answer:
To improve its friendliness, the First National Bank hired Joy Taylor as a greeter. Joy’s
job is to sit at a desk near the front lobby and greet customers as they enter with a
warm, friendly smile along with a “Good Morning” or “Good Afternoon.”
Unfortunately, Joy is also required to answer the bank’s main telephone line. Since she
spends most of her day on the telephone, Joy rarely gets to flash her smile or greet
anyone who is entering the bank. In fact, Joy is on the phone so much that she doesn”t
really even seem friendly. This is an example of a gap between:
a. the service quality specifications and the service that is actually provided.
b. what the company provides and what the customer is told it provides.
c. the service customers receive and the service they want.
d. what customers want and what management thinks customers want.
e. what management thinks customers want and the quality specifications management
develops to provide the service.
Answer:
iTunes has a(n) ____ , as they have exclusive agreements with some of the most sought
after music corporations that other digital music stores do not have.
a. targeted market position
b. sustainable competitive advantage
c. strategic focus
d. situational strength
e. opportunistic privilege
Answer:
South Africa’s Competition Commission accused South African Airways of conspiring
with its partner, Germany’s Lufthansa, to set prices on flights between Cape Town,
Johannesburg, and Frankfurt. As a result, the two airlines were charged with:
a. price discrimination.
b. price fixing.
c. bait pricing.
d. unfair trade practices.
e. channel control pricing tactics.
Answer:
Kathy purchased an Amazon Kindle e-book reader as soon as they came onto the
market. She paid $399 for the product, which she bought the first day it was released.
Kathy works in Information Technology and is always looking for new electronic
products to buy. She would best be described as a(n):
a. early adopter
b. early majority
c. innovator
d. diffusers
e. lead consumer
Answer:
Noah is a budding photographer who is proud of his work. He wants to share his photos
with others online. Which of the following is Noah MOST likely to use to share his
photos?
a. Twitter
b. Google
c. Bebo
d. Flickr
e. Groupon
Answer:
When using _____, price is not set on the product until the item is either finished or
delivered.
a. price shading
b. escalator pricing
c. delayed-quotation pricing
d. bid pricing
e. two-part pricing
Answer:
A(n) ____ discount is a deduction from list price that applies to the buyer’s total
purchases made during a specific period.
a. cumulative quantity
b. noncumulative quantitative
c. functional
d. cash
e. integrated
Answer:
Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an
older market and is not attracting younger concertgoers. It next conducted marketing
research to determine if an integrated advertising campaign targeted to the younger
market would be successful. In its second use of research, BSO employed
marketing research.
a. historical
b. descriptive
c. predictive
d. normative
e. objective
Answer:
Money that is left over after paying for company activities is called:
a. return on investment.
b. a contribution margin.
c. profit.
d. net worth.
e. a current asset.
Answer:
Effective sales management begins with:
a. determining sales goals
b. determining the most efficient structure for the sales force
c. determination the sales force size
d. determining a compensation plan
e. recruiting the sales force
Answer:
An awning manufacturer that is allowed to deduct 3 percent from its total bill if it pays
by a specific date is receiving a promotional discount.
a. True
b. False
Answer:
A go-cart manufacturer recently added shock absorbers to make the ride in its go-carts
smoother. It has not changed its prices. This is a(n) ___ modification.
a. upsale
b. style
c. dysfunctional
d. repositioning
e. quality
Answer:
____ is a strategy that focuses on keeping and improving relationships with current
customers.
a. Commitment selling
b. Relationship marketing
c. Transactional marketing
d. Market engineering
e. Organization-customer synergy
Answer:
Firms with a ______ orientation focus on the internal capabilities of the firm rather than
on the desires and needs of the marketplace.
a. sales
b. production
c. market
d. customer
e. customer-benefit
Answer:
Sara Lee Industries spent considerable money and time developing a crustless bread.
Prior to the introduction, the company had not conducted market research among its
customers, but it was confident that its science and technology department had
produced a successful new product. Based on this example, Sara Lee is a good example
of a production-oriented company.
a. True
b. False
Answer: