An analysis of a prospective product shows that it is expected to grow by at least 10
percent each year over the next 5 years, and then enter the maturity phase of its product
life cycle. This type of analysis would provide useful information in which step of the
price-setting process?
a. identifying pricing objectives and constraints
b. determining cost, volume, and profit relationships
c. estimating demand and revenue
d. selecting an appropriate (approximate) price lining strategy
e. making special adjustments to list or quoted price
Answer:
The uncontrollable forces in a marketing decision involving social, economic,
technological, competitive, and regulatory forces are referred to as __________.
a. the 5 Fs of marketing
b. environmental forces
c. business conditions
d. marketing ecosystem
e. business sphere
Answer:
When prospective buyers observe the bids of others and decide whether or not to
increase the bid price, it is called a(n)
a. forward auction.
b. reverse auction.
c. webfront auction.
d. traditional auction.
e. bidder’s war.
Answer:
A cost focus strategy refers to one of Porter’s generic business strategies that
a. focuses on reducing expenses and, in turn, lowers product prices, while targeting a
broad array of market segments.
b. requires products to have significant points of difference to target one or only a few
market segments.
c. requires products to have significant points of difference to charge a higher price
while targeting a broad array of market segments.
d. involves controlling expenses and, in turn, lowering product prices targeted at a
narrow range of markets segments.
e. seeks opportunities by finding the optimum balance between marketing efficiencies
versus R&D”manufacturing efficiencies.
Answer:
The West Edmonton Mall in Alberta, Canada is a conglomerate of more than 800 stores,
the world’s largest indoor amusement park, more than 100 restaurants, a movie
complex, and two hotels. This retail complex is an example of a(n) __________.
a. regional shopping center
b. urban microcenter
c. megaplex
d. hypermarket
e. supercenter
Answer:
An urgency close refers to __________.
a. asking the prospect to make a decision on some aspect of the purchase
b. allowing the prospect to use or lease the item on a limited temporary basis before
making a final commitment of purchase
c. making an exchange of money or other unit of value
d. quickly committing the prospect by making references to the time limits of the
purchase
e. asking the prospect to make choices concerning delivery, warranty, or financing
terms
Answer:
Which is the most common form of distribution intensity used today?
a. selective distribution
b. intensive distribution
c. extensive distribution
d. exclusive distribution
e. concentrated distribution
Answer:
In the hierarchy of effects, an increase in the consumer’s desire to learn about some of
the features of the product or brand is referred to as the _________ stage.
a. adoption
b. evaluation
c. awareness
d. interest
e. trial
Answer:
Public relations refers to
a. a seller-directed flow of communication, often in a face-to-face encounter, designed
to promote a product with the purpose of making a sale.
b. an individualized communications program specifically designed for a single
customer because the item being sold is unique to that person.
c. a mass selling approach that has been be tailored to meet the more select needs of a
target market based on age, gender, ethnicity, or occupation.
d. a form of communication that is intended to counteract any negative information or
misinformation that has been fomented by competitors or disgruntled customers.
e. a form of communication management that seeks to influence the feelings, opinions,
or beliefs held by customers, prospective customers, stockholders, suppliers,
employees, and other publics about a company and its products or services.
Answer:
Social networks are
a. gaming websites.
b. Internet browsers.
c. specific social media like Facebook or YouTube.
d. the replacement for e-mail to send private messages.
e. social media websites that are the highest in media richness.
Answer:
Which of the following statements regarding organizational culture is most accurate?
a. Organizational culture exists only at the corporate level of an organization.
b. Organizations must connect with all of their stakeholders.
c. Organizational culture is best used only at the functional level for the most effective
results.
d. Organizational culture cannot be learned or taught.
e. Organizational culture is a statement of the organization’s function in society.
Answer:
Which of the following stores are most likely to be an anchor store at a regional
shopping center?
a. Old Navy, Abercrombie & Fitch, and Kay-Bee toy store
b. Hickory Farms, a locally-owned jewelry store, and Radio Shack
c. an antique store, Dollar General, and a bakery
d. Sears, Macy’s, and JCPenney
e. Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore
Answer:
High definition televisions (HDTVs) are an example of a __________, flat screen
HDTVs are an example of a __________; and a Sony Bravia HDTV is an example of a
__________.
a. product line; product class; brand
b. product class; product form; brand name
c. product family; product line; product item
d. product brand; product line; brand name
e. product form; product class; product item
Answer:
Consumers benefit in dealing with retail corporate chains because
a. corporate chains have more experience than other forms of retailers.
b. they can own stock in the same company where they shop since corporate chain
stock must be publicly-traded.
c. they can bargain with a manufacturer to obtain product volume discounts on orders,
which can be passed on to consumers in terms of lower prices.
d. there are multiple outlets with varied merchandise and independent management
policies.
e. merchandise is arranged and displayed by professional designers making their
shopping experience less stressful.
Answer:
Figure 1.
According to Michael Porter’s diamond in Figure 1. above, quadrant “A” represents
a. factor conditions.
b. related and supporting industries.
c. demand conditions.
d. managerial conditions.
e. company strategy, structure, and rivalry.
Answer:
Relationship marketing provides several benefits for service customers, including: (1)
__________; (2) customized service delivery; (3) reduced stress due to a repetitive
purchase process; and (4) an absence of switching costs.
a. the continuity of a single provider
b. no need for comparison shopping
c. discounted switching costs
d. implied warranties
e. strict government quality performance guidelines
Answer:
Which of the following companies had the largest promotional expenditures
(advertising + all other promotions) according to Figure 1. in the textbook?
a. General Motors
b. AT&T
c. Johnson & Johnson
d. Procter & Gamble (P&G)
e. Walmart
Answer:
The AOI marketing team used the following approach in its Bitter Girls marketing
strategy to develop a following in its target market by
a. setting up a Twitter account for each of the Bitter Girls.
b. producing a six-minute YouTube video, featuring a one-minute cameo appearance by
each girl.
c. creating a hypothetical LinkedIn “connection” for each Bitter Girl.
d. creating an official Facebook Page, developed a story line on Facebook, and ran
highly targeted Facebook ads.
e. asking Facebook fans to submit creative stories about each Bitter Girl.
Answer:
Airline programs that encourage passengers to repeatedly use the same airline focus on
usage rate and employ a __________ strategy.
a. rate of recurrence
b. product utilization
c. incidence
d. frequency marketing
e. consumption index
Answer:
One approach to positioning a new product in a market is __________ positioning,
which involves competing directly with competitors on similar product attributes in the
same target market.
a. perceptual
b. psychological
c. differentiation
d. head-to-head
e. market
Answer:
3M inventor, David Windorski took this approach when he developed the Post-itFlag
Highlighter:
a. He first asked students to identify their needs and wants.
b. He asked students to bring him their five favorite office product items they used for
studying.
c. He patented his idea and sold it to 3M.
d. He started with his idea and then investigated if there was a market for it.
e. He petitioned 3M executives for the right to conduct independent research that
ultimately resulted in the 15% rule.
Answer:
Frito-Lay will be releasing a succession of reformulated snacks to address boomers’
concerns about salt and saturated fat to address __________ health-related concerns.
a. echo-boomers’
b. baby boomers’
c. Generation Xers’
d. Generation Yers’
e. baby busters’
Answer:
__________ are items that become part of the final business product.
a. Components
b. Accessories
c. Support products
d. Production goods
e. Raw assemblies
Answer:
When Kimmy Summers and Gina Damoto had to communicate with other students to
recruit volunteers at their respective universities to help freshmen during campus
move-in day, they chose to use
a. letters from their colleges’ deans of students.
b. flyers pushed under dorm-room doors.
c. phone solicitations.
d. ads in their campus newspapers.
e. social media.
Answer:
Dual distribution is considered illegal if
a. both channels are corporately owned.
b. one channel is a direct channel and the other is not.
c. channels are operated from two different states.
d. there is an attempt by a manufacturer to lessen competition by eliminating
wholesalers or retailers.
e. the prices charged consumers differ as a result of the channel in which they were
making their purchases.
Answer:
Organizational buyers include manufacturers, wholesalers, retailers, and government
agencies that
a. purchase exclusively from one supplier.
b. are exempt from state and local taxes.
c. sell directly to ultimate consumers.
d. sell goods and services for their own use.
e. buy goods and services for their own use or resale.
Answer:
When Kia Motors offers a 10-year, 100,000-mile warranty for the Kia Soul automobile,
its strategy is to reduce consumers’ __________ and encourage purchases.
a. behavioral learning
b. cognitive learning
c. brand loyalty
d. perceived risk
e. postpurchase dissonance
Answer:
Consumers and companies populate two market environments today: one is the
traditional __________ and the other is the __________.
a. extranet; intranet
b. superstore; hypermarket
c. marketplace; marketspace
d. shopping mall; virtual mall
e. online store; virtual store
Answer:
Which of the following is a typical objective for value-based planning?
a. integrate sustainable development
b. demonstrate corporate integrity
c. contribute to the price of a company’s stock
d. reduce employee turnover
e. identify new channels of distribution
Answer:
In a(n) __________ test, the test ad is placed in a collection with several other ads and
stories, and consumers are asked to read through the collection. Afterward, subjects are
asked for their impressions of the ads on several evaluative scales.
a. pretest
b. range test
c. group test
d. portfolio test
e. assortment test.
Answer:
The personal selling process refers to__________.
a. the activities that begin with the prospecting of potential leads and end with the final
closing of a sale
b. the three sales activities that include identifying a customer with an unfilled need,
identifying a product or service that could satisfy that need, and initiating a formalized
exchange or sale
c. the formalized sales protocol used by a company’s salesforce to ensure a consistent
quality sales presentation
d. the sales activities occurring before, during, and after the sale itself, consisting of six
stages: prospecting, preapproach, approach, presentation, close, and follow-up
e. the sequential steps taken to close a sale including finalizing product benefits,
arranging for distribution, and arranging for payment
Answer:
Buying Center Photo
As shown in buying center photo above, an organization’s buying center includes
individuals who can play one or more of the following roles EXCEPT :
a. gatekeepers.
b. deciders.
c. buyers.
d. product champions.
e. influencers.
Answer:
Encyclopedia Britannica pays to have a business reply card bound into magazines
adjacent to its advertisement. The ad asks people to return the card for more
information on how its encyclopedias can help children do better in school.
Encyclopedia Britannica is engaging in __________.
a. cold-canvassing
b. order taking
c. sales follow-up
d. stimulus-response selling
e. prospecting
Answer:
When Hallmark cards introduced a line of 99-cent cards (about half the price of the
previously least expensive cards it sold), the greeting card company was trying to
appeal to a mass market that was price sensitive. Hallmark was using a __________
pricing strategy.
a. prestige
b. skimming
c. target ROI
d. penetration
e. experience-curve
Answer:
Sales tools used to support a company’s advertising and personal selling directed to
wholesalers, distributors, or retailers are referred to as
a. trade-oriented sales promotions.
b. consumer-oriented promotions.
c. reseller-oriented promotions.
d. wholesaler-oriented promotions.
e. retailer-oriented promotions.
Answer: