American Airlines maintains a frequent flier loyalty program that allows members to
accumulate 25,000 miles and then redeem these miles for a free round-trip ticket. This
is a(n):
A. Introductory price deal.
B. F.O.B. discount.
C. Cash discount.
D. Cumulative quantity discount.
E. Bundle price discount.
Which of the following observations concerning a “reference price” is true?
A. Reference price is the company’s cost to produce the product.
B. Reference price is set by regulators.
C. Demand may increase if a firm’s price is lower than a customer’s reference price.
D. All customers have the same reference prices for the same basic type of purchase.
Which of the following observations about the use of a marketing information system
(MIS) is FALSE?
A. Not every firm has a complete MIS.
B. An MIS tends to focus on recurring information needs.
C. For most firms it pays to wait to until you have important questions you can’t answer.
D. It is the job of the MIS specialist to ask for the right information in the right form.
E. An MIS shouldn’t be the only source of information for managers while making
decisions.
Which of the following statements about target marketing is incorrect?
A. Target marketing is not mass marketing.
B. Mass marketers like Kraft and Walmart may conduct target marketing.
C. Target marketing is not limited to small market segments.
D. Target marketing assumes that everyone is different and specifies some particular
target customers.
E. Target marketing is associated with the typical production-oriented approach that
aims at everyone with the same marketing mix.
When a telemarketer calls a college student on the phone and offers a one-year
subscription to BUSINESS WEEK at a 50 percent discount, this is an example of:
A. Personal selling.
B. Mass selling.
C. Publicity.
D. Sales promotion.
E. Advertising.
A direct-to-customer channel
A. includes a retailer but not a wholesaler.
B. usually helps the producer to be more aware of changes in final customer attitudes.
C. eliminates some of the marketing functions.
D. is typical to reach final consumer markets.
E. is most suitable when a large number of transactions are required in the channel or
when orders are smaller.
Impulse products are:
A. products that potential customers do not want yet or know they can buy.
B. bought quicklyas unplanned purchasesbecause of a strongly felt need.
C. any products that consumers search for because of a strongly felt craving.
D. any convenience products that are bought often and routinely.
E. none of these alternatives is correct.