Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging,
and other inputs. Although these costs tend to be the same for each unit produced, they
are called ________ costs because the total changes based on the number of units
produced.
A) fixed
B) variable
C) target
D) capital
E) payroll
Answer:
________ involves combining two or more systems of transportation to move products.
A) Vertical transportation
B) Disintermediation
C) Just-in-time management
D) Vertical integration
E) Multimodal transportation
Answer:
In a promotion mix, ________ occurs when a firm’s sales force makes individual
presentations to consumers for the purpose of promoting sales and building customer
relationships.
A) advertising
B) public relations
C) crowdsourcing
D) merchandising
E) personal selling
Answer:
Strawberry Fizz is a renowned bottled juice manufacturer in the United States. It
exports its products to Mexico, has a joint venture in Hong Kong, and owns a
subsidiary in South Africa. The company has organized an export department to
manage its international marketing activities. Do you think it has made the right
decision? Justify your answer.
Answer:
Innovative marketing most likely involves ________.
A) protecting the natural environment
B) considering the consumer’s point of view
C) seeking real product and marketing improvements
D) defining goals in broad social terms rather than narrow product terms
E) placing an emphasis on increasing short-run sales rather than long-term value
Answer:
The Toby’s chain of first-class department stores carries a wide range of product lines,
including clothing, jewelry, kitchenware, and home furnishings. Toby’s typically
charges higher prices on an everyday basis and then holds frequent sales and price
promotions to increase store traffic. Toby’s most likely uses ________.
A) self-service retailing
B) experiential retailing
C) high-low pricing
D) everyday low pricing
E) franchise retailing
Answer:
Japan is a major exporter of manufactured goods, services, and investment funds. Japan
also exports its goods to other types of economies for raw materials and semi-finished
goods. This is an example of a(n) ________ economy.
A) agricultural
B) emerging
C) industrial
D) raw material exporting
E) subsistence
Answer:
Dina loves branded apparel and accessories but cannot afford to buy them too often.
Fortunately, Dina lives close to an off-price retail store that is owned and operated by a
famous brand. The company utilizes this store to sell its surplus, discontinued, or
irregular goods at significantly lower costs. The retail store is best referred to as a
________.
A) category killer
B) factory outlet
C) specialty store
D) superstore
E) power center
Answer:
Which of the following is most likely true about business legislation?
A) Business laws are enforced only in international markets and not in local markets.
B) Business laws fail to prevent unfair competition among the different companies in a
market and tend to encourage monopolies.
C) Business laws usually remain constant over time.
D) Local, national, and state business laws rarely overlap with one another.
E) Business laws that are enforced by government agencies have a major impact on a
company’s marketing performance.
Answer:
Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a
product is called ________ segmentation.
A) behavioral
B) psychographic
C) age and life-cycle
D) user status
E) geographic
Answer:
Marketers apply ________ to the large and complex sets of data they collect to gain
customer insights and gauge performance.
A) CRM software
B) predictive analysis software
C) marketing analytics
D) CRM systems
E) intranet capabilities
Answer:
When Nabisco offers to cover half the cost of all local advertising for supermarkets that
sell Oreo Cookies, the company is granting ________.
A) cash discounts
B) seasonal discounts
C) quantity discounts
D) promotional allowances
E) trade-in allowances
Answer:
In a logistics system, minimizing distribution costs most likely involves ________.
A) flexible assortments
B) large shipping lots
C) rapid delivery
D) large inventories
E) liberal return policies
Answer:
The two major citizen action movements to keep businesses in line are ________.
A) consumerism and environmentalism
B) protectionism and materialism
C) consumerism and protectionism
D) liberalism and monetarism
E) innovation and predatory pricing
Answer:
A marketing intermediary would most likely help a firm by ________.
A) negotiating with labor unions regarding wages, hours, and benefits
B) providing technical expertise on the production and design of goods
C) competing directly with the firm in a certain product category
D) supplying the raw materials needed for manufacturing the firm’s products
E) moving the firm’s goods from production points to distribution centers
Answer:
Which of the following is most likely true about people’s beliefs and values?
A) Belief in marriage is a secondary belief for most Americans.
B) Secondary beliefs and values cannot be changed.
C) Marketers have a high chance of changing core beliefs and values.
D) Secondary beliefs are passed on from parents to children.
E) Core beliefs and values have a high degree of persistence.
Answer:
Which of the following is true of raw material exporting economies?
A) These economies are major exporters of agricultural products.
B) These economies are poor markets for large equipment and trucks.
C) These economies are major exporters of manufactured goods, services, and
investment funds.
D) These economies are rich in one or more natural resources but poor in other ways.
E) These economies consume most of their output and barter the rest.
Answer:
In which of the following stages of the adoption process does a consumer seek
information about a new product?
A) interest
B) adoption
C) evaluation
D) awareness
E) trial
Answer:
A 30-minute or longer advertising program on television that markets a single product
is called a(n) ________.
A) phishing program
B) infomercial
C) podcast
D) catalog
E) spambot
Answer:
The process that turns marketing plans into marketing actions to accomplish strategic
marketing objectives is called marketing ________.
A) analysis
B) implementation
C) control
D) planning
E) design
Answer:
Consistency of a product mix refers to the ________.
A) number of versions offered for each product in the line
B) ways in which the various product lines are related
C) number of different product lines the company carries
D) total number of items a company carries within its product lines
E) total market share captured by the entire product line
Answer:
In a SWOT analysis, ________ refer to unfavorable external factors or trends that may
present challenges to performance.
A) threats
B) strategies
C) weaknesses
D) opportunities
E) strengths
Answer:
BlueBear is a shoe manufacturer based in the United States. Which of the following
indicates that the company is following a market development strategy?
A) BlueBear introduces a line of children’s clothing to its current target market.
B) BlueBear employs a British comedian for a U.S. advertising campaign.
C) BlueBear introduces its shoes in the Indian and South-East Asian markets.
D) BlueBear adds a line of leather purses to its offerings in the U.S. market.
E) BlueBear develops a line of athletic shoes for its current target market.
Answer:
Which of the following is true of an exclusive dealing arrangement between a producer
and a dealer?
A) It prohibits the producer from selling outside the dealer’s territory.
B) It prevents the producer from using any other dealer to sell its products regardless of
geographical area.
C) It gives the producer’s products more shelf power compared to a competitor’s
products being sold by the dealer.
D) It can be considered illegal if it increases competition substantially.
E) It does not allow other producers to sell to that dealer.
Answer:
Producers of popular beverages often partner with global music channels to target
consumers through a variety of promotional events and advertisements. This approach
to marketing is referred to as ________ segmentation.
A) intermarket
B) income
C) age and life-cycle
D) occasions
E) gender
Answer:
Which of the following includes the target segment of a product, the category to which
the product belongs, and the product’s point of difference from other members in the
category?
A) mission statement
B) vision statement
C) profit statement
D) positioning statement
E) inventory statement
Answer:
Which of the following is a disadvantage of licensing?
A) The licensing company gains entry into a foreign market at a high risk.
B) It takes a lot of time for the licensee to gain production expertise and name.
C) Licensing is a complex way for a manufacturer to enter international marketing.
D) The licensor potentially creates a competitor in the form of the licensee.
E) The licensee is restricted from gaining knowledge about the licensor’s intellectual
property.
Answer:
Which of the following is true of product positioning?
A) A product’s position is defined by the number of competitors in a market.
B) Product positioning has little influence on the design of marketing mixes.
C) Consumers generally reevaluate products every time they make a buying decision.
D) To simplify the buying process, consumers are likely to position products in their
minds.
E) Consumers cannot position products with or without the help of marketers.
Answer:
Marketers need to know how customers connect with an ad and brand idea as a part of
the broader brand relationship. This can be achieved by measuring ________ levels.
A) media engagement
B) reach
C) frequency
D) listenership
E) readership
Answer:
Changes in technology and the explosive growth of direct and online marketing are
having a profound impact on the nature and design of marketing channels. One major
trend is toward ________ insofar as product or service producers cut out intermediaries
and go directly to final buyers or when radically new types of channel intermediaries
displace traditional ones.
A) intermediation
B) disintermediation
C) vertical marketing systems
D) horizontal marketing systems
E) corporate vertical marketing systems
Answer:
Which of the following is an advantage of exclusive dealing between a seller and a
dealer?
A) The seller gains more shelf power compared to competitors’ products.
B) The seller can avoid using any intermediary and sell the product directly to
customers.
C) Customers get more loyal and dependable outlets.
D) The seller’s distinctive position is reinforced through customer service and the dealer
obtains steady support from the seller.
E) The dealer can freely choose what products to sell without any interference from the
seller.
Answer:
Which of the following is an impact of the Great Recession on retailing trends?
A) economic shift toward higher prices
B) lower costs for retailers
C) tighter consumer spending patterns
D) longer retail life cycles
E) prohibition on new retail forms
Answer:
Which of the following is true of advertising in the new marketing communications
model?
A) Advertisers are increasingly shifting toward digital media.
B) Advertisers are spending more on broadcast advertising.
C) Advertisers are finding traditional media less expensive.
D) Advertisers are using less targeted media to reach customers.
E) Advertisers have replaced print catalogues with digital versions.
Answer:
Omni Healthcare’s analgesic drug Cetaprin has a 40% share in the analgesics market in
the country of Terrania. Its closest competitor, Febex, has a 25% share in the market,
while four other analgesic brands split the remainder. Which statement indicates that
Cetaprin is a cash cow according to the BCG matrix?
A) Omni Healthcare often takes money from other strategic business units to support
Cetaprin.
B) A customer survey shows that Cetaprin users do not prefer it to other analgesics in
the market.
C) The demand for analgesic drugs in the Terrania market is expected to remain stable.
D) Febex is rapidly gaining market share over Cetaprin due to aggressive marketing
efforts.
E) The Terrania market for healthcare products is expanding rapidly.
Answer: