The division of buyers into groups based on what they prefer and what motivates them
to respond to marketing activities is ________ segmentation.
A. behavioral
B. psychographic
C. values
D. demographic
E. needs
The national economy and design trends are two examples of factors in a company’s
________.
A. microenvironment
B. competitive environment
C. technological environment
D. legal environment
E. macroenvironment
Lexus works to keep customers happy after each sale, aiming to delight the customer in
order to gain a customer for life. In this pursuit, Lexus is focused on which step of the
buyer decision process?
A. problem/opportunity recognition
B. information search
C. evaluation of alternatives
D. purchase decision
E. postpurchase evaluation
Carrie tends to purchase various brands of bath soap. She has never been loyal to a
specific brand; instead, she does a lot of brand switching. In this example, Carrie
exhibits ________.
A. routine response problem solving
B. significant problem solving
C. limited problem solving
D. opinion leadership
E. subliminal perception
Sales promotion features a wide assortment of tools. Which of the following is NOT
one of these tools?
A. contests
B. premiums
C. catalogs
D. coupons
E. loyalty programs
Which of the following is the process of dividing a market into meaningful and distinct
customer groups?
A) market targeting
B) segmentation
C) positioning
D) competitive advantage
E) differentiation
The company designs what it considers to be a good product, totals the expenses of
making the product, and sets a price that adds a standard markup to the cost of the
product. This approach to pricing is called ________.
A. penetration pricing
B. fixed cost pricing
C. cost-plus pricing
D. variable pricing
E. skimming pricing
Which of the following is a relatively recent development that optimizes the online
advertising potential for products and services?
A. behavioral targeting
B. cohort marketing
C. concentrated marketing
D. usage-rate targeting
E. functional positioning
Which of the following groups is the ultimate judge of a product’s utility?
A) marketers
B) management
C) consumers
D) suppliers
E) government agencies
Which of the following statements about retailers and retailing activities is true?
A. Few American retailers are major players in the global economy.
B. Retailers represent about 10% of the total businesses in the United States.
C. Retailers sell durable goods, but not nondurable goods.
D. Retailers generated about 25% of the U.S. gross national product in 2008.
E. Manufacturers do not directly participate in retailing.
________ refers to a sense of consistency, internal causality, and personal
distinctiveness and is expressed through patterns of behavior in interaction with an
individual’s environment.
A. Attitude
B. Belief
C. Culture
D. Personality
E. Status
________ consists of characteristics that make a brand unique.
A. Brand valuation
B. Brand equity
C. Brand personality
D. Licensing
E. Intellectual property
In a SWOT analysis, which of the following would be considered a strength?
A. internal limitations
B. trends in the market
C. favorable factors in the environment
D. factors that challenge the company’s performance
E. internal resources
A firm is using a(n) ________ strategy when it introduces a product at a very low price
to quickly generate sales volume or market segment penetration.
A. skimming pricing
B. competitive pricing
C. intensive pricing
D. penetration pricing
E. price bundling
Which of the following is NOT one of a company’s external marketing participants?
A) the government
B) a competitor
C) an investor
D) a marketing research company
E) the board of directors
The focus of ________ is examining how social phenomenon influence social behavior.
A. consumer behavior analysis
B. lifestyle analysis
C. psychology
D. social psychology
E. consumer problem solving
According to the time value of money, which of the following is true?
A. Revenue collected by a company now is worth less than the same amount of revenue
collected in the future.
B. Revenue collected by a company now is worth more than the same amount of
revenue collected in the future.
C. Revenue collected by a company now is worth the same amount as revenue collected
in the future.
D. Small discounts offered for up-front payment will result in less total revenue.
E. Small discounts offered for cash payment will result in less total revenue.
In advertising, ________ is a legal tactic, while ________ is not legal.
A. puffery; an exaggerated claim
B. an exaggerated claim; puffery
C. bait-and-switch; puffery
D. an exaggerated claim; bait-and-switch
E. corporate social responsibility; social marketing
In a(n) ________ channel, the same member both produces and distributes a product or
service.
A. tiered
B. direct
C. horizontal
D. vertical
E. exclusive
Which of the following is the first step in strategic planning?
A. define business objectives
B. develop the business portfolio
C. establish the business mission
D. craft a marketing strategy
E. identify threats and weaknesses
Which of the following should be the first step in designing a channel strategy?
A. identifying channel objectives
B. understanding the desires of the target customer
C. analyzing channel alternatives
D. evaluating intermediaries
E. exploring international opportunities
Which of the following is a type of probability sample?
A. convenience sample
B. purposive sample
C. quota sample
D. stratified sample
E. snowball sample
Income levels are average ________ used to approximate national earnings.
A. business revenues
B. business profits
C. consumer savings
D. consumer earnings
E. employment levels
In comparison to the manufacturing economy of the 1960s, today’s market involves a
greater focus on all of the following EXCEPT which one?
A. market segmentation
B. relationship marketing
C. mass marketing
D. targeting
E. positioning
In 2008, ________ were the top advertising spending category in the United States.
A. food producers
B. automobile manufacturers
C. apparel producers
D. health care providers
E. restaurants
Essentials is a rapidly growing brand of women’s make-up, perfumes, and nail care
products. The company has established itself as a high-end cosmetic product available
at most national drug stores. In the past, almost all of the advertising for Essentials has
been in women’s fashion magazines.
Essentials is now launching a new line of skin care products, ranging from facial
cleansers to body lotion. These products are designed to be marketed to a broader
audience, so the marketing team is exploring the effectiveness of different promotional
mixes.
Sarah Burnes, the brand manager for Essentials, has decided to implement a marketing
accountability process as her team develops and places marketing communications that
meet the company’s objectives. Sarah is concerned with achieving significant return on
marketing investment and using the marketing resources efficiently.
The Essentials marketing team has approved the development of a television
advertising campaign to launch the new product line. The team wants to assess which
elements of the advertisements are most effective before the advertisements are aired.
The marketing team is most likely to use which of the following?
A) CRM indicators
B) copy testing
C) a purchase funnel
D) a brand tracking model
E) hurdle rating
Digital media is also known as broadcast media.
U-Frame-It is a small company that has hired a local ad agency to put together an
advertising campaign. Which of the following questions should be answered first?
A. What percentage of the budget should be allocated to U-Frame-It radio ads?
B. Which type of media vehicle is most appropriate for U-Frame-It ads?
C. What are the media objectives of U-Frame-It?
D. How does U-Frame-It’s competition advertise?
E. What is the demographic of U-Frame-It’s customer base?
Of the five core customer segments in the market for environmentally and socially
responsible products, members of which group are MOST likely to be active in
environmental causes?
A. LOHAS
B. Naturalites
C. Drifters
D. Conventionals
E. Unconcerned
Fiona Lambrech is the marketing director of a charity that raises funds to help provide
educational services to children and families in developing countries. Fiona wants to
reach a selective market of individuals who have recently donated to international
charities. Which of the following types of direct marketing is Fiona most likely to use?
A. direct-mail marketing
B. catalog marketing
C. telemarketing
D. direct-response TV marketing
E. m-commerce
A business plan ________.
A. is a process for analyzing marketing strategies
B. is a type of marketing audit
C. can be used interchangeably with a marketing plan
D. includes the decisions that guide the entire organization
E. makes a SWOT analysis unnecessary
The only member countries of the North American Free Trade Agreement (NAFTA) are
the United States, Canada, and Mexico.
The ________, a United States regulatory agency, protects the public from potentially
hazardous products.
A. Consumer Product Safety Commission
B. Environmental Protection Agency
C. Federal Communications Commission
D. Federal Trade Commission
E. Food and Drug Administration