Employees are part of a company’s ________.
A. external environment
B. internal environment
C. political environment
D. macroenvironment
E. competitive environment
________ is the coordination of all internal and external activities that affect a
company’s distribution process.
A. Third-party logistics
B. Logistics
C. Channel management
D. Supply chain management
E. Transportation management
The price-quality ratio describes which of the following relationships?
A. Higher-priced products are assumed to have a lower quality.
B. Higher-priced products are assumed to be in greater demand.
C. Higher-priced products are assumed to be in lesser demand.
D. Lower-priced products are assumed to have lesser quality.
E. Lower-priced products are assumed to have greater quality.
The initial method of segmenting a population is usually ________.
A. lifestyle
B. needs
C. usage
D. loyalty
E. demographic
Refer to the scenario below to answer the following questions. Alden Manufacturing
produces small kitchen appliances blenders, hand mixers, and electric skillets under the
brand name First Generation. Alden attempts to target newlyweds and first-time home
buyers with this brand. Considering that most young households have limited financial
resources, Alden has used break-even analysis and analysis of the demand curve to
determine pricing. “In doing this,” Milt Alden stated, “we have better control over
keeping price right in line with customers.” Alden manufactures a three-speed blender,
its top seller, and a five-speed blender. The hand mixers are manufactured in two styles
a small hand-held mixer with two rotating beaters and a similar style that comes with an
optional stand and attached mixing bowl. Alden’s temperature-controlled skillets are
manufactured in one style with three color options. “Our product offerings are
narrower,” Milt Alden added, “but our line workers know each product like the back of
their hands. This allows us to produce superior products while holding our prices low.”
Milt Alden says that his line workers “know each product like the back of their hands,”
and that this knowledge helps the company keep its prices low. This indicates that
Alden Manufacturing most likely uses which of the following strategies?
A. cost-plus pricing
B. skimming prices
C. the experience curve
D. break-even pricing
E. prestige pricing
Which of the following is NOT a type of pricing objective?
A. elasticity
B. volume
C. profitability
D. meeting competition
E. prestige
The ________ is a group of characteristics that is used to assign segment members.
A. perceptual map
B. demographic base
C. segmentation base
D. USP
E. position statement
A marketing ________ is defined as a group of marketing variables a business controls
with the intent of implementing a marketing strategy directed at a specific target
market.
A. plan
B. model
C. mix
D. target
E. optimization
Refer to the scenario below to answer the following questions.
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small,
seaside motel to a thriving year-round resort in just a few years. Atop a bluff
overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during
the summer months, but then faced a tremendous downturn in business during the
winter months. “But, given the industry in the nearby towns, very little year-round
competition, and our close proximity to Portland,” Carol added, “I couldn’t understand
why seasonality had to hit Seagull Terrace so hard!”
So Carol spent her first winter devising a new marketing plan. She put together a
promotional package designed to attract business travelers year-round. Carol’s plan
involved a seasonal promotional gimmick to be implemented from early winter to late
spring that would attract the same numbers as the large summer crowd. Her idea
worked! During her second winter, Carol greeted numerous business travelers both
satisfied repeat guests as well as new guests who had been snagged by her promotional
appeals.
“We still have a long way to go,” Carol admitted. “Our delicatessen offers delicious
entrees, but we’d like to expand that. We provide health club privileges off-site, but we’d
like to eventually provide our own. These are goals I hope to achieve in a few years.
Our first project, however, included a renovation of our guest rooms and I’m quite
proud of the results.” Carol then added, “Actually there are so many possibilities! With
an indoor pool area, I will eventually offer weekend get-aways throughout the winter.”
Carol asks guests to complete a customer satisfaction survey before they leave the
resort. In addition to asking for demographic information and 1-10 ratings on aspects of
the stay at the resort, the survey asks guests for suggestions on what types of services
they’d like to see at the hotel. Carol most likely intends to use this information as part of
a(n) ________ system.
A. four Ps
B. marketing mix
C. customer relationship management
D. perceived value
E. value map
In a culture that values ________, people tend to subordinate their personal goals to
those of a stable group, family, or team.
A. collectivism
B. individualism
C. long-term goals
D. short-term goals
E. ethnocentrism
Which of the following is a relationship, short of a merger, that is formed by two or
more businesses to create market opportunities that would not have otherwise existed?
A. a line extension
B. bundling
C. a brand strategy
D. a brand alliance
E. a portfolio
Which of the following is an example of a variable cost for an amusement park?
A. salary of the park manager
B. food cart supplies
C. liability insurance
D. interest on the property’s mortgage
E. property taxes
Which of the following terms is used to describe the set of forces that influence the
ability of a business to create value and attract and serve customers?
A. the marketing environment
B. the cultural environment
C. Porter’s Five Forces
D. the target market
E. the marketing mix
The total financial benefit that results from owning a brand is quantified through the
process of brand ________.
A. differentiation
B. valuation
C. extension
D. positioning
E. equity
Each new iPod product introduction advances the causes of democratizing technology
and approachable innovation. iPod, an expert at fostering customer community, has
been ranked one of the Breakaway Brands by the brand consultancy Landor Associates.
iPod is positioned on ________.
A. attributes
B. benefits
C. variation
D. selection
E. values
Which of the following is true about convenience stores?
A. They carry mostly durable goods.
B. They charge lower-than-normal prices for nondurable goods.
C. They are reluctant to change their store designs and offerings to adjust to changes in
the market.
D. They create time utility for their customers.
E. They create form, time, and place utility for their customers.
________ are a form of product that consist of a collection of activities that, when
performed, delivers benefits to a customer.
A. Line extensions
B. Services
C. Brands
D. Consumer products
E. Supplements
A(n) ________ is a government ban or restriction on the amount of a specific currency
that is permitted to be traded or purchased.
A. tariff
B. exchange control
C. quota
D. barter
E. franchise
Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of
$25,000 to customers around the world. Speed of delivery to distant markets is a must.
Management should consider using ________ as its main carrier.
A. rail
B. air
C. trucks
D. pipelines
E. water
The ________ environment consists of factors that affect consumer purchase ability and
buying behavior.
A. cultural
B. political
C. technological
D. economic
E. legal
In comparison with magazines and television, out-of-home media offers a ________.
A. lower frequency
B. higher CPM
C. greater media engagement
D. greater media impact
E. less cluttered media environment
Which of the following is the best example of nationalization?
A. In 1940, the city of New York purchased the bankrupt Brooklyn-Manhattan Transit
rail lines.
B. In 1979, Great Britain made a partial sale of British Petroleum to private investors.
C. A private company contracts to manage all of a city’s waste management.
D. A country’s economic policy calls for a balance of trade.
E. A developing country receives a loan from the International Monetary Fund.
Generational marketing involves grouping consumers by age and ________ factors.
A. behavioral
B. socioeconomic
C. lifestyle
D. values
E. psychographic
As the salesperson entered the prospect’s office, the salesperson extended his hand and
said, “Your old college roommate, Tiara Johns, suggested I call on you.” This action
occurred in which stage of the personal selling process?
A. approach
B. prospecting
C. preapproach
D. close the sale
E. follow-up
Kotler’s 4 Cs translate the traditional 4 Ps from the ________ perspective into the
________ perspective.
A. seller’s; buyer’s
B. buyer’s; seller’s
C. producer’s; channel member’s
D. channel member’s; producer’s
E. customer’s; channel member’s
Demand would most likely be inelastic for which of the following?
A. lamb chops and t-bone steaks
B. gourmet cheese
C. symphony tickets
D. luxury watches
E. basic necessities
According to your text, modern marketing has its roots in all BUT which of the
following?
A) anthropology
B) economics
C) psychology
D) sociology
E) statistics
A(n) ________ identifies how much cash is needed to meet financial obligations and
the source of that cash.
A. business statement
B. income statement
C. capitalization statement
D. cash-flow statement
E. balance sheet
A(n) ________ is a limit on the amount of product that can be imported into a country.
A. tariff
B. exchange control
C. quota
D. barter
E. franchise
Ecstasy Pharmaceuticals faces fixed costs of $1,000,000 with manufacturing its new
drug. The company sells the drug in bottles of 50 pills for $10.00. The company
estimates that it must sell 200,000 bottles to break even. What is the total cost to
produce a bottle of 50 pills?
A. $2.50
B. $5.00
C. $6.00
D. $7.50
E. not enough information to calculate
A company is using ________ when it includes products targeted to specific customers,
based on behavior patterns and inventory, in emails to those customers.
A. life cycle marketing
B. direct-response advertising
C. mail ordering
D. direct mailing
E. dynamic imaging
If demand falls by 1 percent when price is increased by 2 percent, then ________.
A. elasticity is -1/2
B. demand is inelastic
C. demand is elastic
D. buyers are not price sensitive
E. A and B
Reinforcement is a reduction in ________ resulting from a positive-response
experience.
A. perception
B. drive
C. cues
D. attitudes
E. stimuli
You have been asked to locate secondary data for your small organization’s research
needs. Which of the following is NOT a common source for this type of research?
A. the local chamber of commerce
B. the U.S. Census Bureau
C. competitors’ Web sites
D. online surveys
E. the library