A project team that comprises of members from different departments who work
together toward jointly establishing new product development goals and priorities is
known as a _____ team.
A. intra-departmental
B. global virtual
C. task force
D. cross-functional
Answer:
One of the major objectives of trade promotions is to:
A. increase a manufacturer’s inventories.
B. increase a retailer’s inventories.
C. discourage advertising and consumer sales promotions.
D. reward a consumer for brand loyalty.
Answer:
In the context of product considerations in pricing, _____ is an approach to pricing in
which a seller charges a relatively high price on a new product and is used when
demand for the product is price inelastic.
A. price fixing
B. line pricing
C. a penetration policy
D. a skimming policy
Answer:
Which of the following explains the reason for the concentration on creation of time
and place utility by service marketers?
A. Most services are often produced and marketed simultaneously.
B. The service encounter is distanced from the end benefit achieved.
C. Services cannot appeal to a buyer’s sense of touch, taste, smell, sight, or hearing.
D. The buyer is guaranteed the ownership of the service that can be used later or given
to others.
Answer:
According to the VALSâ„¢ framework, consumers who are classified as _____ are
predictable, and they choose familiar products and established brands.
A. Strivers
B. Makers
C. Believers
D. Experiencers
Answer:
Which of the following product characteristics affecting pricing typically involves
discounting products as they approach being no longer fit for sale?
A. Distinctiveness
B. Perishability
C. Durability
D. Stage in product life cycle
Answer:
To forecast its future sales, the sales department of a large chain of grocery stores
requires the entire sales force to give their projections so that it can combine the views
of the entire sales force to gain an overview on the future outlook for sales. Which of
the following methods of sales forecasting is the grocery store using?
A. Sales force executive opinion method
B. Sales force composite method
C. Sales force time-series analysis
D. Sales force correlation analysis
Answer:
Creswell Farms produces and sells clover honey. Its owners identify the need to expand
the company’s product line. A brainstorming session results in 40 different product
suggestions, some of which include honey-based salad dressing, honey-flavored
sandwich spreads, honey-coated peanuts, a fruit dip, a honey-flavored yogurt, and a
ham glaze. Which of the following stages of the new product development process does
this indicate?
A. Project planning
B. Test marketing
C. Idea generation
D. Product development
Answer:
Rita is a successful entrepreneur who owns a small coffee shop. She serves her
customers her own homemade brew of coffee. Recently, she developed a new flavor of
tasty brew and distributed free samples to her regular customers. She then sought their
feedback on the new flavor. This is an example of _____.
A. brand positioning
B. test marketing
C. commercialization
D. brand retailing
Answer:
With regard to determining how much to spend on advertising, which of the following
observations is true of the percent-of-sales approach?
A. This approach views sales as a function of advertising, rather than advertising as a
function of sales.
B. This approach attempts to determine the retail price by using production costs as a
base.
C. The basic philosophy underlying this approach is that advertising is defensive.
D. This approach is popular in retailing.
Answer:
Rolly Inc., a candy-maker and retailer, increases its candy prices by ten percent in one
of its stores while retaining the existing prices in all its other stores. It then compares its
sales in the test store to sales in the other stores. The information collected provides
Rolly with evidence about the impact of price changes on Rolly’s customers. The type
of research used at Rolly Inc. best exemplifies _____.
A. experimental research
B. mathematical modeling
C. observational research
D. survey research
Answer:
An advantage of using mall intercepts as a data collection method in marketing research
is that:
A. they provide unrestrained time to respondents.
B. their costs are free from the influence of incidence rates.
C. they do not require interviewer supervision.
D. they have fairly high response rates.
Answer:
An important feature of a salesperson providing after-sale service would be to:
A. build relationships with customers and provide reassurance of product superiority.
B. clearly distinguish attributes of the firm’s products or services from those of rivals.
C. sell complementary items to repeat customers.
D. convert uncertain customers into first-time buyers.
Answer:
Which of the following growth strategies aims at either increasing frequency of
consumption or increasing the number of customers using a firm’s product(s)?
A. Diversification and market penetration
B. Product development and diversification
C. Market development and diversification
D. Market development and market penetration
Answer:
Winter Head is a firm that manufactures woolen blankets. The manufacturer claimed its
blankets made from the softest wool and were so finely stitched that consumers wanted
to include them in their inheritance. The company was proud of its product quality and
formulated its mission statement based on it. What could potentially be wrong with
such a mission statement?
A. The firm had an external focus.
B. The firm focused on the market for its high-quality products.
C. The firm focused on the product rather than on its market.
D. The firm defined the company in terms of its marketing capabilities.
Answer:
Carla, the owner of a retail meat store, visited the facilities of a meat-processing
warehouse to assess the quality and service of the meat and related processes. When she
expressed a desire to enter their cold storage, she was pleasantly surprised to be offered
warm clothing, as the employees realized she would feel excessively cold in her formal
wear. Also, the warehouse was willing to offer customized meat cuts as well. Which
service quality determinant is prominent in this scenario?
A. Assurance
B. Tangibility
C. Responsiveness
D. Reliability
Answer:
Which of the following is true of franchises?
A. They involve a parent company and an independent firm entering into a contractual
relationship to set up and operate a business in a particular way.
B. They involve a group of independent retailers uniting and agreeing to pool buying
and managerial resources to improve competitive position.
C. They involve a wholesaler contracting with a number of retailers performing channel
functions for it.
D. They involve a retailer assuming ownership of its primary manufacturer through the
presence of a channel leader.
Answer:
Which of the following is a type of psychological pricing strategy?
A. Cost-plus pricing
B. Rate-of-return pricing
C. Markup pricing
D. Prestige pricing
Answer:
With relevance to marketing, which of the following cultural values of a consumer
stimulates interest in products that are used or owned by others in the consumer’s same
social group?
A. External conformity
B. Individualism
C. Internal resonance
D. Humanitarianism
Answer:
In the context of psychographic segmentation, what does “VALS” stand for?
A. Values and linkages
B. Values and lifestyles
C. Values and liabilities
D. Values and leverage
Answer:
Which of the following forms of distribution coverage will provide minimum flexibility
to a manufacturer?
A. Selective distribution
B. Restrictive distribution
C. Exclusive distribution
D. Intensive distribution
Answer:
One of the disadvantages of exporting is that:
A. it includes the cost of establishing manufacturing operations in the host country.
B. it does not help a firm achieve experience-curve and location economies.
C. it requires a firm to pay import duties or face trade barriers.
D. it is a complicated approach for a company making its first foray into the
international marketplace.
Answer:
Which of the following kinds of pricing strategies would you expect producers to use
for pricing homogeneous products, such as wool, tomatoes, wheat, coal, and bone
meal?
A. Penetration pricing
B. Going-rate pricing
C. Skimming pricing
D. Sealed-bid pricing
Answer:
The emphasis on which of the following aspects differentiates the American working
class from its middle-class counterparts?
A. Prestige products
B. Reference groups
C. Basic needs
D. Family ties
Answer:
Big Bite Ltd., an American fast-food chain has franchises in several countries. Big Bite
regularly provides extensive marketing and promotional support to its franchises, and
there is a complete absence of rifts between its domestic and international divisions.
This indicates that Big Bite Ltd. has an admirable _____.
A. social culture
B. structure
C. political system
D. management process
Answer: