Nita can visit her local supermarket and buy a dozen roses, a gallon of milk, two
birthday cards, a bag of cat litter, and a pan for roasting a turkey. This illustrates how
channels of distribution benefit consumers by ________.
A) creating atmospherics
B) creating assortments
C) directing logistics
D) managing knowledge
E) managing relationships
Josh purchased a new tie from an upscale men’s clothing store to impress the managers
he would meet at an important job interview. The day after the job interview, Josh
returned the tie to the store for a full refund. This is an example of ________.
A) buyer’s remorse
B) sweethearting
C) retail borrowing
D) shoplifting
E) customer profiling
Which of the following is NOT part of a target marketing strategy?
A) dividing the market into segments based on customer characteristics
B) identifying a market that is likely to buy a product
C) selecting one or more segments as target markets
D) developing a product to meet the needs of a specific market segment
E) positioning a product
According to the long tail approach to selling, ________.
A) the Internet provides reduced opportunities for segmenting markets
B) companies can make the most money by focusing on the “bottom-of-pyramid”
market
C) companies should focus on the 20 percent of customers who purchase the greatest
volume of their product
D) companies should focus on the 80 percent of customers who purchase the greatest
volume of their product
E) companies can make money by selling small amounts of items that only a few
people want
Another name for multilevel marketing is ________.
A) the party plan system
B) network marketing
C) the pyramid system
D) e-commerce
E) experiential marketing
Which of the following is NOT considered a source of market intelligence?
A) distributors
B) industry trade publications
C) customers
D) causal research
E) activities of competitors
Which of the following make up the largest single business and organizational market
in the United States?
A) raw material markets
B) producer markets
C) not-for-profit markets
D) e-commerce markets
E) government markets
The salesperson contacts the customer for the first time in the ________ step of the
creative selling process.
A) preapproach
B) prospect
C) approach
D) presentation
E) qualify
Which of the following would be the best source for information about the size and
number of companies operating in a particular industry in the United States?
A) PRIZM
B) AIO
C) VALS™
D) NAICS
E) ISP
A firm is using a(n) ________ strategy when it introduces a product at a very low price
to gain market share early on.
A) skimming pricing
B) trial pricing
C) intensive pricing
D) penetration pricing
E) price bundling
Making adjustments to the marketing plan is part of which stage of market planning?
A) SWOT analysis
B) portfolio analysis
C) implementation and control of the marketing plan
D) situation analysis
E) development of marketing objectives
Firms that have a triple-bottom-line orientation measure success by their financial
successes, how they contribute to their communities, and how they ________.
A) develop new business
B) create sustainable business practices
C) interact with customers
D) maintain relationships with channel partners
E) expand into overseas markets
Which of the following is the type of advertising that the media run free of charge?
A) product advertisements
B) advocacy advertisements
C) public service advertisements
D) institutional advertisements
E) local advertisements
Which of the following is NOT an example of a demographic segmentation variable?
A) lifestyle
B) income
C) ethnic group
D) gender
E) age
Which of the following is the best example of a service?
A) the medical examination Jonathon had yesterday
B) the sheet music purchased by the piano teacher
C) the software Monica purchased from the website
D) the cleaning supplies purchased for the veterinarian’s office
E) the t-shirt you got for running in a 5K race
________ is the process by which a consumer or business customer begins to buy and
use a new good, service, or idea.
A) Commercialization
B) Product testing
C) Product adoption
D) Diffusion
E) Positioning
Of the following, which sales job requires the LEAST creative selling?
A) order getter
B) order taker
C) team selling member
D) new-business salesperson
E) missionary salesperson
Arm & Hammer began as a producer of baking soda. Now the company manufactures
detergents, deodorants, and fabric softeners under the Arm & Hammer brand name.
Arm & Hammer uses a ________ strategy.
A) brand extension
B) product line contraction
C) downward line stretch
D) cannibalization
E) cobranding
GameStop sells video games and systems, offering a narrow product line with a deep
assortment within that line. GameStop is a(n) ________.
A) department store
B) convenience store
C) specialty store
D) general merchandise discount store
E) off-price retailer
The second step in strategic planning is to ________.
A) formalize a mission statement
B) establish the business portfolio
C) set SBU and department-level objectives
D) set organizational objectives
E) assess the organization’s internal and external environments
When Circuit Town Electronics sets its televisions at three price levels of $699, $899,
and $1,099, it is most likely using ________.
A) price fixing
B) price lining
C) penetration pricing
D) skimming pricing
E) loss leader pricing
Which of the following best explains why a company would adopt an undifferentiated
targeting strategy?
A) to more efficiently focus on customer relationship management
B) to remove the need for disintermediation
C) to move a product to the next stage of its product life cycle
D) to take advantage of economies of scale
E) to reach the underserved “bottom-of-the-pyramid” consumers
As a result of the ________, Rick decided the candy priced at $2.50 per pound could
not be nearly as good as the candy priced at $9.50 per pound.
A) assimilation effect
B) contrast effect
C) fair price effect
D) reference effect
E) clouding effect
Southern Security makes safes for storing valuables such as jewelry and family records.
When Ed sold safes for the company, he had to be prepared with a response when a
prospect said, “I have no room for a safe” or “My family heirlooms aren’t valuable
enough to put in a safe.” In other words, Ed had to ________.
A) prepare several different closings
B) use a canned sales presentation
C) treat each sale as a transaction
D) utilize cold calling
E) anticipate objections
Keely was invited to examine a free copy of a new magazine called Coastal Living. If
she did not enjoy the magazine, she could write “Refused” on the invoice for her
subscription, which would arrive about three weeks after the free magazine. The
magazine’s publisher was using ________.
A) a continuity program
B) a rebate
C) a premium
D) product placement
E) sampling
In a competition between ________ and ________ brands, retailers have the advantages
of controlling what products will be stocked, where products will be stocked, what
prices will be charged, and which products will be featured in local print promotions.
A) national; manufacturer
B) national; private-label
C) store; private-label
D) national; licensed
E) manufacturer; licensed
In developing a new shoe, Reebok targeted the youth market. It used ________
segmentation to define its target market.
A) lifestyle
B) behavioral
C) socioeconomic
D) demographic
E) psychographic
Generally, consumer goods are either ________ or ________.
A) convenience products; staples
B) durable goods; nondurable goods
C) industrial products; packaged goods
D) shopping products; impulse products
E) shopping products; convenience products
________ involves a five-step process called DMAIC (define, measure, analyze,
improve, and control) designed to improve quality.
A) Total quality management (TQM)
B) Cannibalization
C) ISO 9000
D) ISO 14000
E) Six Sigma
A ________ exists when an unauthorized party imports products and then sells them for
a fraction of the price of authorized products.
A) gray market
B) dual distribution system
C) disintermediation system
D) black market
E) dumping ground