Which of the following statements regarding retail pricing is most accurate?
A. Consumers rarely base their perceptions of a store’s prices on a price of a benchmark
item in the store.
B. Consumers are influenced more by a store’s ambiance than its prices.
C. Stores that offer rebates and take an excessive amount of time to process them may
create negative consumer perceptions.
D. New technology has nearly made markdowns unnecessary.
E. The only difference between everyday low pricing and everyday fair pricing is
whether the store uses markups.
Answer:
The increased customer value achieved through performing organizational functions
like marketing or manufacturing more efficiently is referred to as __________.
A. aggregation
B. organizational synergy
C. segmentation
D. amalgamation
E. valuation
Answer:
An advantage of online advertising such as offered through Google is that it is
__________, which allows it to immediately assess its __________.
A. objective; measurability
B. measurable; effectiveness
C. unbiased; impartiality
D. detached; measurability
E. independent; traceability
Answer:
In one of its least favorite actions, Amazon.com was caught fiddling with its prices.
Avid DVD buyers, buying in quantity for resale, found that the online retailer was
offering different customers different prices for the same DVD, and complained
vociferously. Company officials admitted that the company was trying to see how much
it could charge for an item before buyers balked. Amazon was caught attempting
A. horizontal price-fixing.
B. price discrimination.
C. resale price maintenance.
D. predatory pricing.
E. bait and switch pricing.
Answer:
Karl Lagerfeld Ad
The Karl Lagerfeld ad shown above is an example of which type of appeal?
A. reminder
B. fear
C. advocacy
D. sex
E. guilt
Answer:
During step 2 of the strategic marketing process, firms like Medtronic engage in all of
the following marketing activities EXCEPT:
A. position the product
B. set marketing and product goals
C. develop the marketing program
D. select target markets
E. find points of difference
Answer:
Model E is a new type of car manufacturer that relies on the Internet ordering. “Think
of Model E as the Dell of the auto industry. We design just a few products that
consumers truly want, leveraging best-in-class components and micro-factory
approaches for rapid design, launch, and direct delivery,” said William Santana Li,
president and CEO of Model E. Model E manufactures each car when a customer
chooses from a limited number of options and orders. Model E relies on
A. order customization.
B. a one product one market segment strategy.
C. build-to-order.
D. specialty customization.
E. mass customization.
Answer:
eBay is the predominant person-to-person trading community in the world. eBay is an
example of a(n)
A. Webfront operation.
B. clicks-and-mortar store.
C. e-marketplace.
D. noncompetitive market.
E. integrated market.
Answer:
A common publicity tool is the __________, where representatives of the media are all
invited to an informational meeting and advance materials regarding the content are
sent out in advance.
A. infomercial
B. news release
C. news conference
D. news flash
E. news huddle
Answer:
The advantage of a product sales organization is that
A. salespeople can develop expertise with technical characteristics, applications, and
selling methods associated with a particular product or family of products.
B. the number of salespersons in the salesforce can be reduced.
C. there is a lower cost for sales calls since this method is chosen for products that
inherently have little or no product variation.
D. it significantly minimizes travel time, expenses, and duplication of selling effort
from one territory to another.
E. fewer sales managers are required since the salesforce is paid strictly on commission.
Answer:
Figure 2-11
Based on the information in Figure 2-11 above, the planning gap between 2005 and
2013, as represented by the wedge DBC, __________.
A. is widening
B. is narrowing
C. is staying the same
D. cannot be quantified
E. began to open in 1998
Answer:
The classifications of innovators, early adopters, early majority, late majority, and
laggards are all based upon __________.
A. how frequently a consumer uses a product
B. the number and strength of competitors
C. when consumers begin buying a new product
D. the time it takes to educate a consumer in the use of a new technology
E. how quickly consumers respond to an advertising message or campaign
Answer:
A form of low-risk and capital-free entry into international markets that includes local
manufacturing is referred to as
A. indirect exporting.
B. direct ownership.
C. joint ventures.
D. licensing.
E. direct exporting.
Answer:
Which type of marketing channel arrangement is especially good for a firm to use in
global marketing where the creation of marketing channel relationships is expensive
and time consuming?
A. dual distribution
B. cooperative distribution
C. strategic channel alliance
D. global distribution alliance
E. multichannel distribution
Answer:
Culture serves as a socializing force that
A. reflects the will of the largest or most powerful minority.
B. is determined by the largest generational group at a given point in time.
C. becomes the basis of all legislation – federal, state, and local – in societies around the
world.
D. expresses the diverse backgrounds of a nation’s subcultures.
E. dictates what is morally right and just.
Answer:
Originally, filters for Mr. Coffee electric-drip coffee makers were sold through
appliance and mass merchandise stores. If the company decided to sell the filters in
grocery stores where customers purchased their coffee, what type of intermediaries
would the company most likely hire?
A. a full-line wholesaler
B. a drop shipper
C. a food broker
D. a truck jobber
E. a manufacturer’s representative
Answer:
If a brand manager wants to explain the benefits of using a complex product to
consumers, the best social network to use is
A. YouTube.
B. LinkedIn.
C. Facebook.
D. Twitter.
E. Google Chrome.
Answer:
An intermediary who sells to consumers is referred to as a(n) __________.
A. agent
B. broker
C. retailer
D. wholesaler
E. distributor
Answer:
There are three general forms of retail ownership: contractual system, independent
retailer, and __________.
A. dual ownership
B. industry consortium
C. retailing cooperative
D. multi-national cartel
E. corporate chain
Answer:
Although the lack of control means that it is rarely the main element of a promotional
campaign, __________ is an important element of most promotional campaigns.
A. publicity
B. advertising
C. personal selling
D. sales promotion
E. direct marketing
Answer:
Much of Google’s success is based on the ten guidelines of its corporate philosophy.
Guideline 2 states, “It’s best to do __________ really, really well.”
A. one thing
B. everything
C. whatever you love
D. what you are afraid of
E. your job
Answer:
The Better Business Bureau
A. is the best-known federal agency involved in monitoring self-regulation of
competing businesses.
B. has a great deal of legal power to force a company to comply with its regulations.
C. cannot be involved with Internet commerce.
D. is a voluntary alliance of companies whose goal is to help maintain fair practices.
E. is the agency that oversees advertising that runs on television programs.
Answer:
All the following sources produce channel conflict EXCEPT:
A. when a manufacturer increases its distribution coverage in a geographical area.
B. a channel member bypasses another member and sells or buys products directly.
C. disagreements over how profit margins are distributed among channel members.
D. manufacturers believe wholesalers or retailers are not giving their products adequate
attention.
E. a channel member wants to use vendor-managed inventory.
Answer:
A supply chain refers to
A. the various firms involved in performing the activities required to create and deliver
a product or service to ultimate consumers or industrial users.
B. an inventory management system where the supplier determines the product amount
and assortment a retailer needs and automatically delivers the appropriate items.
C. mathematical formulas and calculations used in determining product volume and
demand in order to generate the greatest revenue at the lowest cost.
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:
To effectively positioning a product or brand, companies take four steps: (1) identify the
important attributes for the product or brand class; (2)__________; (3) discover where
the company’s product or brand is on these attributes in the minds of potential
customers; and (4) reposition the company’s product or brand in the minds of potential
customers.
A. decide whether to keep or delete the market segment that your product offering
targets
B. identify the competitors’ brands that make up the consideration set
C. identify market niches that were not selected during the market segmentation process
D. discover how target customers rate competing products or brands with respect to
these attributes
E. create a marketing plan based on customers’ perceptions
Answer:
One advantage of using a billboard as an advertising medium is that
A. it is environmentally friendly.
B. it is relatively low-cost.
C. it has universal appeal.
D. it is particularly suited to national campaigns.
E. it is especially suited for pioneering product advertisements.
Answer:
The advertising campaign, “Think Outside the Bun” was designed for Millenials and
belongs to which brand?
A. McDonald’s
B. Arby’s
C. Chick-Fil-A
D. Taco Bell
E. Long John Silver’s
Answer:
Generally, as the proportion of middle-income households in a country __________, the
__________ a nation’s purchasing power.
A. increases; greater
B. increases; lesser
C. decreases; greater
D. levels off; greater
E. There is no relationship between middle-income households and a nation’s
purchasing power.
Answer:
The three types of organizational buy classes are
A. industrial, reseller, and government.
B. consumer products, industrial goods, and services.
C. users, influencers, and deciders.
D. straight purchase, barter, and countertrade.
E. new buy, straight rebuy, and modified rebuy.
Answer:
All of the following are disadvantages of licensing EXCEPT:
A. the licensor reduces its potential profits gained from product sales.
B. the foreign country gains employment by having the product manufactured locally.
C. the licensor forgoes control of its product.
D. should the licensee prove to be a poor choice, the name or reputation of the company
may be harmed.
E. the licensor may be creating its own competition.
Answer:
One of the world’s largest publishers was totally unprepared for recent increases in the
demand for digital books. During 2011, the sale of e-books exceeded the sales of
traditional printed paperback books for the first time. If the publisher had __________,
it would have been more prepared for this shift in its marketing environment.
A. optimized its distribution by eliminating local and chain store bookstores (like
Borders) that failed to meet their sales quotas
B. noticed the change in the demographics of book readers in general
C. noticed the behavioral changes in moviegoers, who now prefer to view 2D and 3D
movies in IMAX theaters
D. shifted funds from product development to advertising
E. tracked, as part of its ongoing environmental scanning activities, the sales of e-books
and e-book readers sold by others
Answer:
Figure 8-A
Assume that the perceptual map in Figure 8-A is an accurate representation for adult
consumers. A heavy consumer of mineral water is likely to think that mineral water is
A. more nutritious than tea.
B. more nutritious and a more adult-oriented beverage than milk shakes.
C. a more adult-oriented beverage than nutritionally designed diet drinks.
D. less nutritious and a more adult-oriented beverage than fruit-flavored drinks.
E. a more adult-oriented beverage than sports drinks.
Answer: