Contract manufacturing refers to
a. offering the right to a trademark, patent, trade secret, or similarly valued items of
intellectual property in return for a royalty or fee.
b. contracting with a foreign firm to manufacture products according to stated
specifications.
c. contracting between a foreign country and a local firm to invest together to create a
local business.
d. having a company handle its own exports directly, without intermediaries.
e. exporting through an intermediary, which has the knowledge and means to succeed in
selling a firm’s product abroad.
Answer:
A nongovernmental organization that serves its customers but does not have profit as an
organizational goal is referred to as a
a. business firm.
b. nonprofit organization.
c. subchapter S corporation.
d. cooperative.
e. social service agency.
Answer:
A continuing, concise trade-off of incremental costs against incremental revenues is
referred to as
a. break-even analysis.
b. demand analysis.
c. marginal analysis.
e. situation analysis.
d. cost-benefit analysis.
Answer:
A technique that analyzes the relationship between total revenue and total cost to
determine profitability at various levels of output is referred to as __________.
a. break-even analysis
b. marginal analysis
c. sensitivity analysis
d. market analysis
e. tipping point analysis
Answer:
Figure 1.
Figure 1. above represents the four approaches to selecting an appropriate price level.
“C” represents which approach?
a. demand-oriented approach
b. cost-oriented approach
c. profit-oriented approach
d. competition-oriented approach
e. results-oriented approach
Answer:
The choice of a supply chain involves three steps: (1) understand the customer; (2)
__________; and (3) harmonize the supply chain with the marketing strategy.
a. understand the environment
b. consider the legal consequences
c. understand the supply chain
d. understand the marketing strategy
e. understand the company’s goals
Answer:
Which of the following is a trend that influences newspapers today?
a. There is a growth in online newspapers.
b. Newspapers are enjoying increasing circulation.
c. Newspapers are increasing the number of printed pages.
d. More cities are increasing the number of newspapers that are available.
e. Cheaper newsstand prices have rekindled an interest in newspapers.
Answer:
In Latvia, only one six-lane highway connects Riga with Moscow. Otherwise, the roads
are two-lane and many are made of cobblestones or bricks. This limits the speed with
which deliveries can be made and means that delivery trucks must be quite small. The
road network in Latvia is an example of its
a. capital infrastructure.
b. political infrastructure.
c. economic infrastructure.
d. geopolitical network.
e. ecosystem.
Answer:
Neiman Marcus has approximately what amount of sales per square foot according to
the Sales per Square Foot Marketing Dashboard above?
a. $500
b. $800
c. $1,000
d. $2,000
e. $4,000
Answer:
Figure 1.
According to Figure 1. above, points “B” and “C” would most likely be __________
and __________ respectively.
a. exporting; licensing
b. licensing; joint venture
c. joint venture; direct investment
d. exporting; direct investment
e. exporting; joint venture
Answer:
Figure 1.
According to Figure 1. above, an additional annual marketing effort of $1 million is
best spent after having already spent how much in marketing effort to date?
a. $1 million
b. $2 million
c. $3 million
d. $5 million
e. $6 million
Answer:
Many companies are now opting for commercial time on live events rather than
programs that consumers might
a. avoid because there are too many commercial interruptions.
b. watch while multitasking.
c. watch later on a DVR.
d. believe are commercial-free.
e. have seen previously.
Answer:
Burberry makes fine raincoats, clothing, and other items, some that feature the
company’s distinctive plaids. Originally found only in Great Britain, Burberry has
opened a limited number of exclusive shops in leading cities around the world to reach
customers who value its name and quality. Burberry is selling which classification of
consumer product?
a. convenience product
b. shopping product
c. discretionary product
d. unsought product
e. specialty 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:
The use of computer, information, communication, and Internet technologies to make
the sales function more effective and efficient is referred to as____________.
a. automated selling
b. direct selling
c. salesforce automation
d. salesforce computerization
e. salesforce networking
Answer:
Important marketing mix characteristics in organizational buying behavior include
which of the following?
a. Few large transactions are made over the Internet due to concerns of industrial
espionage.
b. Products must be easily adaptable in form and function to accommodate consumer
tastes.
c. Negotiations, purchases, and delivery occur in real time at an accelerated rate.
d. Direct selling to organizational buyers is the rule, and distribution is very important.
e. Many of the goods purchased are raw and semifinished.
Answer:
In __________, consumers typically seek some information or rely on a friend to help
them evaluate alternatives.
a. limited problem solving
b. extended problem solving
c. short-term problem solving
d. routine problem solving
e. relational problem solving
Answer:
The Boston Consulting Group (BCG) uses __________ to quantify performance
measures and growth targets to analyze its clients’ SBUs as though they were a
collection of separate investments.
a. target marketing
b. business portfolio analysis
c. synergy analysis
d. market-product grids
e. diversification analysis
Answer:
The Hermitage, a famous Russian art museum, was suffering financial difficulties as the
result of lost funding and a decrease in tourists. The decrease in visitors is blamed on a
lack of awareness of the treasures contained in the museum. As a result, the Hermitage’s
director used a strategic alliance with IBM to create a website where people can go and
view some of the wonders of the Hermitage in an online virtual tour. The hope is that
this sampling of paintings, sculptures, etc. will encourage visitors to make a trip to the
Hermitage and spend some money there to cover the costs of its operations. The
Hermitage is a(n) __________ that uses online virtual tours to market itself worldwide.
a. good
b. idea
c. service
d. product
e. charity
Answer:
Analyzing data and presenting the results of this analysis would take place during
which stage of the five-step marketing research approach?
a. collect relevant information
b. develop the research plan
c. develop findings
d. take marketing actions
e. define the problem
Answer:
One advantage of using newspapers as an advertising medium is their
a. ability to cover national markets.
b. excellent use of color graphics.
c. quick consumer response.
d. relatively high cost.
e. limited distraction from other features.
Answer:
Variable cost refers to
a. the sum of the expenses of the firm that are stable and do not change with the
quantity of a product that is produced and sold.
b. the sum of the expenses of the firm that vary directly with the quantity of a product
that is produced and sold.
c. the total expense incurred by a firm in producing and marketing a product, which
equals the sum of fixed cost and marginal cost.
d. the average amount of money received for selling one unit of a product or simply the
price of that unit.
e. the change in total cost that results from producing and marketing one additional unit
of a product.
Answer:
The _________ distinguishes retail outlets based on whether independent retailers,
corporate chains, or contractual systems own the outlet.
a. product involvement
b. service level
c. merchandise line
d. product assortment
e. form of ownership
Answer:
When using share points to make marketing resource allocation decisions, marketing
managers must estimate: (1) __________, (2) the revenues associated with each point
of market, (3) the contribution to overhead and profit (or gross margin) of each share
point, and (4) possible cannibalization effects on other products in the line.
a. the market share for the product
b. the number of market segments
c. the total production costs
d. the total financial resources available for a sustained marketing effort
e. the stage of the product in its product life cycle
Answer:
During the Christmas season, many catalog retailers offer buyers price reductions,
coupons, two-for-one deals, and/or free delivery. This is because these catalog retailers
operate in a(n) __________ environment.
a. pure competition
b. oligopoly
c. monopolistic competition
d. monopoly
e. marginal competition
Answer:
To circumvent competing with Japanese firms through their traditional channel of
distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in
which type of retail venue?
a. grocery stores
b. flower shops
c. beauty salons
d. department stores
e. gift stores
Answer:
Bob Biltmore owns dozens of very successful print shops throughout the Midwest.
Biltmore’s shops specialize in low-cost black-and-white copies and feature user-friendly
machines consumers can easily operate. In recent months, Biltmore has noticed many
more competitors in the areas where his stores are located. In an attempt to eliminate
the competition, Biltmore has decided to charge a very low price for his
black-and-white copies, a price so low his competitors will be forced out of business.
After the competition has been driven out, Biltmore plans to raise the price of his
copies. Biltmore is planning to engage in the illegal and unethical practice of
a. price fixing.
b. price inflation.
c. deceptive pricing.
d. competitive pricing.
e. predatory pricing.
Answer:
The element of the marketing mix that describes what is exchanged for a product is
known as
a. a product.
b. the price.
c. promotion.
d. the place or distribution.
e. money.
Answer:
A product that has tangible attributes that a consumer’s five senses can perceive is
referred to as a(n)
a. service.
b. product concept.
c. good.
d. new idea.
e. artifact.
Answer:
Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils specifically
created for pets under three months of age. In terms of the market-product grid
framework, adding a line of pet food for mature dogs, cats, rabbits, and gerbils will
result in a __________ strategy that will provide Loving Care Pets with increased
marketing efficiencies.
a. market specialization
b. market product concentration
c. product specialization
d. selective specialization
e. full coverage
Answer:
With uniform delivered pricing, the price the seller quotes
a. includes all transportation costs.
b. excludes all transportation costs.
c. includes a fixed allowance whereby the buyer pays any costs above that allowance.
d. includes a fixed percentage of transportation costs for which the seller will be
responsible.
e. will guarantee that a retailer will be charged the same transportation fee for all of
their outlets regardless of where they are located.
Answer: