A failure fee is a penalty payment
A. a retailer assesses a manufacturer to handle defective new products that customers
returned.
B. a wholesaler makes to a retailer as compensation for sales not made while the
product was on the shelf.
C. a retailer makes to a manufacturer for stockouts – not keeping point-of-purchase
displays continuously stocked with the new product.
D. a manufacturer makes to a wholesaler as compensation for case-lot sales not made to
retailers.
E. a manufacturer makes to compensate a retailer for devoting valuable shelf space to a
product that fails to sell.
Answer:
Advertising explains that the drug Plavix works by preventing plaque buildup in
arteries that can cause heart attack and stroke. This is an example of
A. using a cognitive learning technique.
B. using a behavioral learning technique.
C. reducing perceived risk.
D. creating stimulus generalization.
E. using an attitudinal learning technique.
Answer:
When conducting an information search, various product-rating organizations, such as
government agencies and TV consumer programs, are known as
A. relational sources.
B. marketer-dominated sources.
C. personal sources.
D. public sources.
E. stakeholder sources.
Answer:
Figure 7-1
According to Figure 7-1 above, what does E represent in the marketing research
process?
A. take marketing actions
B. define the problem
C. develop the research plan
D. collect relevant information
E. develop findings
Answer:
Wholesalers that carry a broad assortment of merchandise and perform all channel
functions are referred to as a __________.
A. limited-line wholesaler
B. drop shipper
C. rack jobber
D. specialty merchandise wholesaler
E. general merchandise wholesaler
Answer:
Calculate a firm’s total revenue (TR) using the following information: the unit price (P)
for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and
the variable cost (VC) is $20,000.
A. $10,000
B. $50,000
C. $110,000
D. $150,000
E. cannot be determined with the information provided
Answer:
A local band performed on campus during a pre-graduation party. The students enjoyed
the performance, and some of them were interested enough to buy tickets to see another
show at a club downtown. But when they went to that concert, the quality of the
performance was much poorer than they had heard and seen on campus. The students’
disappointment was the direct result of which characteristic of services?
A. inconsistency
B. impressionability
C. intangibility
D. invisibility
E. uniqueness of the service
Answer:
Multibranding refers to a branding strategy in which a firm __________.
A. gives each product a distinct name when each brand is intended for a different
market segment
B. uses different brand names for the same product across multiple countries
C. uses one name for all its products in a product class
D. produces products but sell them under the brand name of a wholesaler or retailer
E. contractually, and for a fee, allows other firms to use its brand name, requiring that
the product be made to its specifications
Answer:
__________ is(are) the reward to a business firm for the risk it undertakes in marketing
its offerings.
A. Shareholders’ equity
B. Profit
C. Assets
D. Contribution margin
E. Goodwill
Answer:
There are six commonly used techniques to deal with objections: acknowledge and
convert the objection; postpone; __________; accept the objection; denial; and ignore
the objection.
A. redirect the conversation
B. defer to a supervisor
C. agree and neutralize
D. probe by asking additional questions
E. distract by identifying competitor shortcomings
Answer:
A popular NPR radio show encourages listeners to solve a puzzle each week. If they
have the correct answer and send it in to the show and theirs is chosen, they win a prize.
This is an example of a __________.
A. premium
B. sweepstakes
C. deal
D. contest
E. trade promotion
Answer:
A new version of the Data Protection Directive, called the __________, will address
new developments such as social networks and cloud computing and take effect in
2016.
A. General Data Protection Regulation
B. Personal Identity Law
C. Intellectual Property Act
D. Credit Protection Act
E. Shared Information Act
Answer:
Emily wants to purchase a tablet device. She is unsure about what hardware and apps
she will need. As a result, she has begun asking for advice from her friends and
relatives. In addition, she has talked to several salespeople at Apple and Best Buy and
has looked at some websites, such as HP and Dell. Emily is engaging in
A. problem recognition.
B. an internal search.
C. an external search.
D. a purchase task.
E. the creation of an antecedent state.
Answer:
Mile High Frozen Foods is a distributor for McDonalds. It also bakes the buns used by
McDonalds in several states. It purchases flour, yeast, and sesame seeds, manufactures
the buns, and then ships them to McDonalds’ stores. Mile High Frozen Foods is
operating in a(n) __________ market.
A. consumer
B. government
C. industrial
D. service
E. reseller
Answer:
In __________, consumers typically seek only a few information sources about several
sellers and their brands, and may identify and evaluate several criteria or attributes for
each brand that eventually will comprise the consideration set.
A. limited problem solving
B. extended problem solving
C. short-term problem solving
D. routine problem solving
E. relational problem solving
Answer:
Which of the following firms uses crowdfunding to raise capital for products that are
unlikely to get resources from traditional sources?
A. IDEO
B. Kickstarter.com
C. Warren Buffet’s Berkshire Hathaway
D. the Industrial Design Group
E. Unfundale.com
Answer:
The total expense incurred by a firm in producing and marketing a product, which
equals the sum of fixed cost and variable cost, is referred to as
A. overhead cost.
B. total cost.
C. unit cost.
D. average cost.
E. marginal cost.
Answer:
Google’s mission is to
A. receive 20 billion inquiries each day.
B. be the first company to generate $100 billion in revenues every year.
C. be the most socially responsible company on earth.
D. obtain corporate sustainability by the year 2015.
E. organize the world’s information and make it universally accessible and useful.
Answer:
Figure 17-2
As shown in Figure 17-2 above, F is the __________ stage in the personal selling
process.
A. presentation
B. follow-up
C. preapproach
D. close
E. approach
Answer:
Unilever markets its Snuggle fabric softener differently to different parts of the world.
Unilever is a(n) __________ firm.
A. ethnocentric
B. multinational
C. transnational
D. global
E. international
Answer:
The strategy transnational firms employ that standardizes marketing activities when
there are cultural similarities and adapts them when cultures differ is referred to as a(n)
A. global marketing strategy.
B. integrated marketing strategy.
C. transnational marketing strategy.
D. meganational marketing strategy.
E. international marketing strategy.
Answer:
The purpose of the five key steps in segmenting and targeting markets is to
A. identify competitors that provide similar products that satisfy a firm’s customers’
needs.
B. provide guidance to reposition a firm’s products.
C. generate new products ideas for firms that are not growing in market share.
D. link market needs of customers to the organization’s marketing program.
E. correlate directly to each of the five environmental forces.
Answer:
The Zappos segmentation strategy is based on
A. offering the best selection of shoes and the best service to online shoppers.
B. designing shoes for every type of occasion.
C. dividing all their customers into two distinct segments: people shopping for low
price and people shopping for style.
D. offering the best selection of shoes through multiple channels of distribution.
E. maintaining the simplest method of price points to make the purchase process easy.
Answer:
An aging baby boomer population has led to increased interest in developing and
marketing products to satisfy the needs of this large market. As a result, moisturizing
lotions and creams like Oil of Olay are now repositioned as age-defying products. This
is an example of which product repositioning action?
A. reaching a new market
B. reacting to a competitor’s position
C. trading up
D. changing the value offered
E. product modification
Answer:
The EU has benefited firms in its member nations because
A. it provides a safe haven in times of world economic crises.
B. there is a common language advantage among EU consumers.
C. most companies within the EU are engaging in strategic global partnerships.
D. there is now a legally binding code of economic conduct.
E. firms do not need to market their products and services on a nation-by-nation basis.
Answer:
Figure 17-2
If the salesperson’s objective is to obtain a purchase from the prospect and create a
customer, what is the name of this stage in the personnel selling process?
A. preapproach
B. close
C. follow-up
D. approach
E. presentation
Answer:
Based on __________, the Campbell’s Soup Company changed the labels of most of its
soup cans.
A. external secondary data – an article in the Journal of Consumer Behavior on
ethnographic research
B. social media Facebook comments and Twitter tweets analysis
C. internal secondary data – sales reports on soup sales by flavor and package type (can
or microwave bowl)
D. neuromarketing studies
E. online/e-mail questionnaires
Answer:
Among business products, which of the following would most likely be considered an
installation?
A. a factory
B. roof tiles
C. a cleaning service
D. a photocopier
E. a drill press
Answer:
A promotion alternative that uses direct communication with consumers to generate a
response in the form of an order, a request for further information, or a visit to a retail
outlet is referred to as __________.
A. personal selling
B. sales promotion
C. publicity
D. advertising
E. direct marketing
Answer:
KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is
an example of which type of global marketing product and promotion strategy?
A. product extension
B. product adaptation
C. product customization
D. product invention
E. product integration
Answer:
During the evaluation phase of an IMC program, a firm will __________ and make
needed changes.
A. posttest the promotion
B. design the promotion
C. state the mission
D. carry out the promotion
E. identify possible advertising or promotional firms
Answer: