For inbound telephone marketing, the company provides a toll-free phone number so it
can receive orders solicited by television and print ads, direct mail, and catalogs.
Deceptive packaging includes exaggerating package contents through subtle design and
misleading labels.
Corporate marketing ethics policies should most likely address distributor relations,
advertising standards, customer service, and pricing.
A brand extension gives a new product instant recognition and faster acceptance.
A small increase in consumer demand can cause a large increase in business demand.
In a retailer cooperative, independent retailers band together to set up a jointly owned,
central wholesale operation and conduct joint merchandising and promotion efforts.
Customer equity is a measure of the past value of a company’s customer base.
The business analysis stage is the final step in the new product development process.
Venns is a chain of department stores that has become more focused in recent years and
now stocks only exclusive labels of designer home accessories. Venns has transformed
itself into a chain of pop-up stores.
The retailer’s product assortment should be distinguishable and also match target
shoppers’ expectations.
A company can offer greater customer value by either charging lower prices than
competitors or offering more benefits to justify higher prices.
The purchasing power of a population is part of the technological environment of a
company’s macroenvironment.
An innovation management system collects, reviews, evaluates, and manages new
product ideas.
In most marketing research projects, what type of research is conducted first?
A) causal
B) descriptive
C) remedial
D) corrective
E) exploratory
Which of the following is an example of a nontariff trade barrier?
A) a sales tax
B) customs duty
C) a host-country regulation
D) excise duty
E) an import quota
How do firms that use captive-product pricing make up for the low prices of their main
products?
A) They reduce the cost of the captive products.
B) They provide the captive products as freebies.
C) They set high markups on the captive products.
D) They increase the price of the main products.
E) They offer the captive products and main products together at a reasonable price.
Which of the following is a shortcoming of advertising?
A) It does not allow dramatization of the brand or company.
B) It only provides one-way communication with customers.
C) It is too customized and only attracts small, niche markets.
D) It reaches targeted customers too slowly in most cases.
E) It is the most costly promotion tool for companies.
Which of the following is most likely true about a global organization?
A) Worldwide policies are planned by top corporate management.
B) Global operating units report to international division chiefs.
C) Executive training is restricted to domestic operations.
D) Employees are recruited exclusively from the home country.
E) It considers itself a national marketer that sells abroad.
ABM Connect is one of the largest Internet service providers in India. The company’s
salespersons regularly contact buyers to make sure that the installation and services
have been properly executed. Which of the following steps of the selling process does
this scenario depict?
A) approach
B) presentation
C) closing
D) follow-up
E) preapproach
Which type of economy consists mostly of households with very low family incomes?
A) post-industrial
B) developed
C) emerging
D) industrial
E) subsistence
A greater focus on underlying customer needs than on existing customer wants leads to
marketing myopia.
Which of the following creates the shortest distribution channel between a producer and
a customer?
A) retail marketing
B) indirect marketing
C) share marketing
D) direct marketing
E) wholesale marketing
________ are the standards stating the amount salespersons should sell and how sales
should be divided among the company’s products.
A) Sales promotions
B) Sales quotas
C) Display allowances
D) Time-and-duty analyses
E) Sales reports
Futuristic Designs Inc., a furniture retail chain, understands and anticipates customer
needs even better than customers themselves do and creates products and services to
meet their existing and future needs. Which of the following has Futuristic Designs
followed in this case?
A) the product concept
B) customer-driving marketing
C) the societal marketing concept
D) customer-driven marketing
E) the production concept
What is the last step in the marketing research process?
A) developing a research plan
B) determining a research approach
C) interpreting the findings
D) gathering internal data
E) using behavioral targeting
In exclusive dealing, a producer may agree not to sell to other dealers in a given area.
Which of the following is a quantitative Internet-based research approach?
A) online survey
B) online focus group
C) online listening
D) behavioral targeting
E) social tracking
Compare and contrast closed-end questions and open-end questions for gathering data.
The responsibility for setting a company’s mission, objectives, broad strategies, and
policies primarily lies with its ________.
A) finance department
B) research department
C) top management
D) marketing managers
E) human resource managers
________ is a method of entering a foreign market by developing foreign-based
assembly or manufacturing facilities.
A) Exporting
B) Direct investment
C) Licensing
D) Indirect exporting
E) Management contracting
Kimlee, a food manufacturer based in China, recognizes the immense demand for
noodles in the Australian market. Kimlee forms a new business venture to manufacture
instant noodles and decides to share possession and control of the new business with a
local food processing company. In this case, Kimlee has entered a foreign market
through ________.
A) licensing
B) contract manufacturing
C) direct investment
D) joint ownership
E) management contracting
Which of the following concepts holds that consumers will favor products that are
available and highly affordable?
A) the marketing concept
B) the product concept
C) the societal marketing concept
D) the selling concept
E) the production concept
Which term refers to a wholesaler-sponsored group of independent retailers that
engages in group buying and common merchandising?
A) factory outlet mall
B) retailer cooperative
C) corporate chain
D) warehouse club
E) voluntary chain
Critics charge that high advertising and promotion costs unnecessarily increase retail
prices. Marketers most likely respond to this criticism by arguing that advertising
________.
A) provides essential psychological benefits about products
B) adds value by giving consumers product information
C) generates tax breaks for small businesses
D) applies a functional value to the product
E) lowers prices by increasing competition
Customers at Carat, a premium jewelry store, are encouraged to make an appointment
before a visit so that a customer service representative is assigned to them. These
representatives help every customer make a purchase that meets his or her needs and
budget after considering numerous options. The different styles and special features of
the jewelry are explained to each customer to aid the purchase decision. In this case,
Carat is an example of a(n) ________.
A) self-service retailer
B) off-price retailer
C) full-service retailer
D) supermarket
E) convenience store
Ellis, a marketing manager at a regional chain restaurant, has decided to create a contest
asking the public to create commercials for the restaurant. Winning entries will be
posted on the organization’s home page. Ellis’ plan is an example of ________.
A) consumer-generated marketing
B) frequency marketing
C) customer-club marketing
D) sustainable marketing
E) multi-level marketing
Wayne Wholesaling fulfills many channel functions for its customers. The company
mainly focuses on helping retailers to train their salespeople, improve store layouts, and
set up inventory control systems. Based on this description, which channel function is
provided by Wayne Wholesaling?
A) buying and assortment building
B) selling and promoting
C) risk bearing services
D) market information services
E) management services and advice
Which statement is most likely true about the affordable method of setting an
advertising budget?
A) Spending on advertising is calculated based on the financial objectives a company
wishes to accomplish.
B) Spending on advertising is calculated after operating expenses, and capital outlays
are deducted from total revenues.
C) Spending on advertising is based on a predetermined percentage of current or
forecasted sales for the year.
D) Spending on advertising is calculated as a percentage of the unit sales price.
E) Spending on advertising is based on a competitor’s advertising outlays.
Briefly describe the maturity stage of the product life cycle.
How has the new communications model changed the face of today’s marketing
communications?
Kronos Inc., a car manufacturer, makes a car called Hover that runs on the force
generated by super magnets. Kronos is the first company to use super-magnet
technology in automobile manufacturing, aiming to reduce dependency on
non-renewable fuels. If Kronos plans to release television advertisements about Hover,
what kind of advertising objective should it pursue when introducing the new product
into the market?
Explain the cultural factors that influence consumer behavior.
How has the implementation of the National Do Not Call Registry changed telephone
marketing?
Explain how an inside sales force could provide support to an outside sales force.
Briefly explain the societal marketing concept.
Why do companies generally divide a market into segments of customers?
What are business promotions? Explain any two major business promotion tools and
their benefits.
Compare the four types of products in the societal classification of products. Provide
examples of each type to illustrate your answer.