Which of the following pricing techniques results in the manufacturers deliberately
adjusting the composition and features of a product to achieve the desired price for
consumers?
A. cost-plus percentage-of-cost pricing
B. standard markup pricing
C. cost-plus fixed-fee pricing
D. experience curve pricing
E. target pricing
Answer:
Why did 3M phase out the production of a chemical used as an ingredient in its
Scotchgard fabric protector?
A. New advances in fabric manufacturing, such as dirt repellant fibers, made the need
for the product obsolete.
B. The product accidentally violated the patent rights of a competitor.
C. Traces of the potentially harmful chemical were found in humans, so the product was
voluntarily halted.
D. New governmental legislation banned the production of one of the product’s key
component chemicals.
E. 3M developed a new product that didn’t contain this chemical and was less costly to
produce, resulting in a significantly higher profit margin.
Answer:
The “Mean Stinks” ignition was designed to primarily reach which segment of
prospective customers?
A. baby boomer women
B. teen girls
C. Gen X girls
D. Gen Y boys
E. teen boys
Answer:
The two aspects of the process for evaluating the results of a marketing decision are
evaluating the decision itself and __________.
A. evaluating the sales results.
B. conducting a SWOT analysis.
C. evaluating the decision process used.
D. beginning a new environmental scan.
E. reallocating resources to become more efficient and effective.
Answer:
Which of the following statements regarding global brands is most accurate?
A. A global brand has dispersed marketing centers, each of which is responsible for a
specific region.
B. A global brand is marketed under the same name in multiple countries.
C. A global brand alters the brand name for each dialect in a geographical region.
D. A global brand delivers multiple benefits to the GDP of each country.
E. A global brand is a collaborative effort among several different transnational firms.
Answer:
__________ applies innovative approaches to organize, create, and manage a venture to
solve the practical needs of society and is usually structured as a nonprofit organization.
A. Corporate welfare
B. A social entrepreneur
C. Sustainable development
D. Cause marketing
E. Societal capitalism
Answer:
After Microsoft launched its Xbox 360 video-game console, millions began to
experience the “red ring of death.” The problem: The consoles’ microprocessors ran too
hot, causing them to pop off their motherboards. This cost the company not only money
to extend its product warranty, but a huge portion of future sales and market share to
competitors Sony and Nintendo. This failure was due to
A. not satisfying customer needs on critical factors.
B. poor product quality.
C. an insignificant point of difference.
D. incomplete market and product protocol.
E. too little market attractiveness.
Answer:
The first step in developing the promotion program is to __________.
A. set the budget
B. state the mission
C. identify the target audience
D. select the appeal
E. select the media
Answer:
Five influences can have an impact on a consumer’s purchase decision process, which
are purchase task, social surroundings, physical surroundings, temporal effects, and
antecedent states. These are referred to as
A. marketing mix influences.
B. situational influences.
C. psychological influences.
D. sociocultural influences.
E. evaluative criteria.
Answer:
A shift of the demand curve from D1 to D2 in Figure 11-3B above indicates
A. fewer units are demanded at the given price.
B. more units are demanded at the given price.
C. the price has decreased.
D. the price has increased.
E. there is not enough information given to indicate what happened.
Answer:
If Ben & Jerry’s sold more units of its Bonnaroo Buzz Fair Trade-sourced super
premium ice cream to U.S. consumers as a result of increased promotion while keeping
its price per pint the same, it would be using a __________ strategy.
A. product development
B. market development
C. market penetration
D. diversification
E. market saturation
Answer:
TransWave International is a small company that has developed a system that uses the
Internet and patented electronic sensors as an early-warning device for pipeline leaks.
Pipeline safety is becoming a big issue in the U.S. as more natural gas lines are being
laid near population centers. The timing is right for this company to be extremely
successful, but it must use __________ advertising so oil companies will know of its
product’s existence.
A. reminder
B. competitive
C. pioneering
D. institutional
E. objective
Answer:
According to a recent Federal Communications Commission report, AT&T, Verizon,
Sprint-Nextel, and T-Mobile control 93 percent of the subscribers in the U.S. wireless
mobile phone market. Which form of competition characterizes this market?
A. pure competition
B. limited competition
C. a monopoly
D. an oligopoly
E. monopolistic competition
Answer:
News conferences would most likely be used during which stage of a product’s life
cycle?
A. introduction
B. harvesting
C. maturity
D. growth
E. decline
Answer:
Logistics refers to
A. an inventory management system where the supplier determines the product amount
and assortment a retailer needs and automatically delivers the appropriate items.
B. mathematical formulas and calculations used in determining product volume and
demand in order to generate the greatest revenue at the lowest cost.
C. the sequence of firms that performs activities required to create and deliver a product
or service to ultimate consumers or industrial users.
D. activities that focus on getting the right amount of the right products to the right
place at the right time at the lowest possible cost.
E. a specialized intermediary in the distribution chain responsible for the coordination
of all production schedules.
Answer:
Which of the following statements about family decision making is most accurate?
A. The use of joint decision-making is directly related to the educational levels
achieved by the spouses.
B. Husbands make most of the purchase decisions made about cars, vacations, and
homes.
C. The two types of family decision-making are joint and autonomous.
D. With autonomous decision-making, the husband would make all the decisions about
groceries, medicine, and car maintenance.
E. Women have little influence when it comes to men’s clothing purchases except for
socks or ties.
Answer:
A strategy of dropping a product from the product line during the decline stage of the
product life cycle is referred to as __________.
A. trimming
B. elimination
C. paring down
D. deletion
E. harvesting
Answer:
The process of seeing or hearing messages without being aware of them is referred to as
A. selective retention.
B. subliminal perception.
C. selective perception.
D. selective attention.
E. indifference.
Answer:
Two former sales representatives of Amgen, a biotech company, alleged the company
strongly encouraged its salesforce to search confidential medical records in
dermatologist’s offices to find names of patients that would benefit Amgen’s drug
Enbrel, a psoriasis treatment. After reporting this practice to the president, one rep was
fired and the other resigned after receiving a poor performance review. Both sued
Amgen, claiming they did not go along with the scheme because they objected to it as
being unethical. The two sales representatives are
A. scabs.
B. cronies.
C. whistle-blowers.
D. contrarians.
E. ombudsmen.
Answer:
A snack vending machine located in a university building that students use between
classes when hungry creates both __________ utility.
A. time and place
B. place and form
C. form and creation
D. possession and form
E. application and place
Answer:
When Jason called the toll-free number to order two children’s books from the
Chinaberry catalog, the firm was using __________.
A. social networking
B. interactive marketing
C. multichannel selling
D. inbound telemarketing
E. outbound telemarketing
Answer:
A strategic business unit (SBU) refers to
A. a single product or service identification code used to identify items for strategic
marketing planning purposes.
B. a small number of people from different departments in an organization who are
mutually accountable to accomplish a task or common set of performance goals.
C. a strategic product that has a unique brand, size, or price.
D. a privately owned franchise under the auspices of a larger group or organization
bearing the same name.
E. a subsidiary, division, or unit of an organization that markets a set of related
offerings to a clearly defined group of customers.
Answer:
Which of the following promotional elements requires expensive database
management, a major weakness of that form of promotion?
A. advertising
B. personal selling
C. sales promotion
D. publicity
E. direct marketing
Answer:
All of the following are organizational buyers EXCEPT:
A. industrial firms.
B. government units.
C. ultimate consumers.
D. resellers.
E. wholesalers.
Answer:
The stage of the new product process that specifies the features of the product and the
marketing strategy needed to bring it to market and make financial projections is
referred to as
A. idea generation.
B. business analysis.
C. marketing analysis.
D. product development.
E. commercialization.
Answer:
In terms of scheduling advertising, the speed with which buyers fails to recall a brand if
advertising is not seen is referred to as
A. buyer turnover.
B. the frequency rate.
C. the brand awareness rate.
D. the forgetting rate.
E. the recall dissipation rate.
Answer:
An integral part of the package that typically identifies the product or brand, who made
it, where and when it was made, how it is to be used, and package contents and
ingredients is referred to as a(n) __________.
A. SKU
B. product information panel
C. UPC
D. RFID
E. label
Answer:
Product advertisements refer to advertisements that focus on
A. a product class rather than on an individual brand.
B. building goodwill or an image for an organization.
C. counteracting negative opinions.
D. selling a product or service.
E. clarifying misconceptions.
Answer:
Dick’s Sporting Goods carries baseballs all year around. The same is true for footballs
and tennis equipment. With this all-year-around strategy, Dick’s Sporting Goods offers
__________ utility for these products.
A. time
B. place
C. possession
D. market
E. form
Answer:
Compared to the general population, the profile of online consumers tend to be
A. younger, more educated, more affluent and equally male and female.
B. younger, more educated, conservative, and male.
C. younger, more educated, socially conscious, and female.
D. older, less educated, less affluent, and male.
E. older, more educated, more affluent, and female.
Answer:
The most likely market for cosmetic dentistry, where costs can be as much as $15,000
for teeth straightening and whitening, is
A. toddlers with crooked baby teeth, when crooked teeth run in the family.
B. all former smokers who have been smoke free for at least one year.
C. anyone who has the time, the money, and the desire to undergo the procedures.
D. anyone who has dental insurance.
E. adults who want to make a good first impression for a job interview.
Answer:
To promote their business, some psychics advertise free tarot-card readings and other
insights into their customers’ futures on television. Unfortunately, this “free reading”
has cost some unsuspecting callers as much as $700 in phone charges. This sort of
pricing practice would be primarily monitored by the
A. Consumer Protection Agency.
B. U.S. Department of Justice.
C. Federal Trade Commission.
D. Federal Communications Commission.
E. Consumer Product Safety Commission.
Answer:
Imagine that Eveready has developed solar rechargeable batteries that cost only slightly
more to produce than the rechargeable batteries currently available. These solar
batteries can be recharged by sunlight up to 5 times, after which they are to be
discarded. Unfortunately, the production process cannot be patented, so competitors
could enter the market within a year. Which of the following is the best description of
the product life cycle of this product?
A. rapid growth followed by rapid decline
B. long, level beginning, and rapid ascent
C. moderately slow introduction, followed by modest growth, gradually leveling off
D. high introductory sales, with rapid decline
E. high initial sales followed by slow decline
Answer:
Evergreen Air Center is the world’s largest parking lot for unwanted commercial
aircraft. Airlines pay from $750 to $5,000 monthly for the storage services provided by
Evergreen. Prior to September 2001, the company had 140 discarded airplanes at its
Arizona facilities and was growing at a rate of about six planes monthly with about two
per month sold for parts or scrap metal. After calamity struck the airline industry in
September 2001, airlines retired over 1,000 planes, and the actual number of planes
stored at Evergreen differed significantly from its earlier prediction. Evergreen has
enacted a new goal, widening the __________.
A. contribution margin
B. planning gap
C. marginal trend
D. breakeven point
E. sales differential
Answer:
The three primary types of product advertisements are __________, competitive, and
reminder.
A. goodwill
B. industrial
C. persuasive
D. pioneering
E. subliminal
Answer: