European Style Furniture (ESF), headquartered in New York, acquires fine furniture
from several high quality manufacturers in Europe and enjoys exclusive distribution
rights from them to sell to furniture stores throughout the U.S. In this context, ESF is
most likely classified as a
A. producer.
B. reseller.
C. service provider.
D. government agency.
E. industrial firm.
Answer:
Carrying out the promotion program can be expensive and time consuming. One
researcher estimates that “an organization with sales between $200 million and $500
million will need __________ years” to successfully implement an IMC program.
A. two
B. three
C. four
D. five
E. ten
Answer:
Organizational buying criteria serve the same purpose as __________ criteria used by
consumers.
A. consideration
B. evaluative
C. decision
D. alternative
E. prepurchase
Answer:
The Child Protection Act (1966) and the Consumer Product Safety Act (1972) are
examples of
A. pricing-related legislation.
B. laws specifying product requirements.
C. fair trade legislation.
D. distribution-related legislation.
E. requirement contracts.
Answer:
Whirlpool recently asked the United States to impose __________ on washing machine
imports made by LG Electronics and Samsung Electronics, both South Korean
companies, to raise the price of these products. Whirlpool accused these companies of
selling below fair market value and receiving anticompetitive export subsidies from
their governments, both of which could jeopardize American jobs.
A. boycotts
B. quotas
C. sanctions
D. tariffs
E. embargoes
Answer:
Six executives of Tyson Foods, one of the world’s largest poultry, beef, and pork
processors, were arrested for the illegal smuggling of undocumented foreign workers
into the U.S. to work at Tyson plants. Based on this information, one could conclude
that Tyson’s violations were the result of __________, one of the major reasons why
some company employees engage in unethical behavior.
A. a mission statement that is too broad
B. the absence of a written core values statement
C. the absence of whistle-blowers
D. top management’s behavior
E. the absence of a stakeholder code of ethics
Answer:
Figure 12-2
Intermediaries perform three basic functions. According to Figure 12-2 above, B
represents a(n) __________.
A. logistical function
B. transactional function
C. middleman function
D. facilitating function
E. operational function
Answer:
Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her
staff of 60 perform everyday services such as walking the dog, picking up cleaning,
waiting for the repairman, and going to the post office for people who are too busy to
perform these simple acts. She has often been hired by major corporations to perform
services for their harried executives, and even other employees. Her staff is overworked
and she will soon hire more employees to fill demand. Arenas is not currently
experiencing __________; in fact, all of her employees and equipment are fully being
used.
A. off-peak pricing
B. idle production capacity
C. static demand
D. capacity marketing
E. capacity inventory
Answer:
The tangibles that make up the service, such as buildings, landscaping, vehicles,
furnishings, signage, brochures, and equipment, comprise which element of the seven
Ps of services marketing?
A. process
B. place
C. physical environment
D. productivity
E. product
Answer:
When the charitable contributions of a firm are tied directly to the customer revenues
produced through the promotion of one of its products, this marketing practice is
referred to as
A. marketing philanthropy.
B. marketing allegiance.
C. relationship marketing.
D. transactional marketing.
E. cause marketing.
Answer:
Figure 5-6A
In Figure 5-6A above, as the number of buyers increases, the price
A. increases.
B. decreases.
C. stays the same.
D. has no relation to the number of buyers.
E. fluctuates depending on economic conditions.
Answer:
Motivation refers to
A. the stimulus required to cause a consumer to do something uncharacteristic of
himself.
B. the energizing force that stimulates behavior to satisfy a consumer need.
C. a person’s consistent behaviors or responses to recurring situations.
D. the way people see themselves and the way they believe others see them.
E. a learned predisposition to respond to an object or class of objects in a consistently
favorable or unfavorable way.
Answer:
What do the United States Post Service, the Connecticut Department of Social Services,
and the Phoenix Fire Department have in common?
A. They are all privately owned companies.
B. None fit on the service continuum.
C. They never experience idle production capacity.
D. Capacity management is not an issue for these organizations.
E. They are all government agency service providers.
Answer:
Figure 11-6
Suppose you are the owner of a picture frame store. Let’s assume that the average price
customers are willing to pay for each picture frame is $120. Also, suppose your fixed
costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit
variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). Figure
11-6 above shows that by selling 800 picture frames, you will
A. break even.
B. earn a profit.
C. incur a loss.
D. have no fixed costs.
E. have no variable costs.
Answer:
Luxottica Photo
Ralph Lauren has a long-term __________ agreement with Luxottica Group, S.p.A. of
Milan for the design, production, and worldwide distribution of prescription frames and
sunglasses under the Ralph Lauren brand. The agreement is an ideal fit for both
companies. Ralph Lauren is a leader in the design, marketing, and distribution of
premium lifestyle products, while Luxottica is the global leader in the premium and
luxury eyewear sector.
A. brand licensing
B. generic branding
C. multiproduct branding licensing
D. mixed branding
E. co-branding
Answer:
Motorola invented the Six Sigma program that sets as a goal of no more than one defect
in one million parts manufactured. This is an example of a(n) __________ goal.
A. profit
B. sales revenue
C. quality
D. market share
E. employee welfare
Answer:
Western Digital, the Irvine, California-based maker of disk drives, recalled about
400,000 of its hard drives because of a faulty internal chip. The chip will not affect the
disk drive motor until after six to twelve months of use. This delay in the problem’s
appearance means that many consumers would not think to blame the disk drive
manufacturer. But, instead of taking the less expensive route of remaining quiet about
the problem, Western Digital chose to offer replacement disk drives for all those that
had the faulty chip. This action is an example of __________.
A. hedonism
B. utilitarianism
C. moral idealism
D. existentialism
E. socialism
Answer:
A competitive advantage refers to
A. the cluster of benefits that an organization promises customers to satisfy their needs.
B. those characteristics of a product that make it superior to competitive substitutes.
C. a unique strength relative to competitors that provides superior returns, often based
on quality, time, cost, or innovation.
D. actions taken by a firm with the sole intent of putting a competitor out of business.
E. the added value given to a product beyond the functional benefits provided.
Answer:
Specialty merchandise wholesalers
A. carry a broad assortment of merchandise and perform all channel functions.
B. own the merchandise they sell but do not physically handle, stock, or deliver it.
C. offer a relatively narrow range of products but has an extensive assortment within
the product lines carried.
D. work for several producers, carry noncompetitive, complementary merchandise in an
exclusive territory, and use over-the-road transportation for all product deliveries.
E. deal exclusively with small low-cost consumer goods that are distributed to a select
number of large retail chains.
Answer:
During the next-to-last stage of the organizational buying decision process, the
organization
A. drafts specifications.
B. formally rates suppliers that were used.
C. evaluates supplier facilities.
D. awards the contract.
E. recognizes a need for change.
Answer:
Which of the following are key dimensions of service quality that might be used to
perform a gap analysis for airline travel?
A. gap analysis, intangibility, and reliability
B. respect, diligence, and honesty
C. honesty, intangibility, and diligence
D. alacrity, fairness, and product knowledge
E. reliability, tangibility, and responsiveness
Answer:
If you hold a personal value of thriftiness, then you probably will have a favorable
__________ toward automobiles with good fuel economy.
A. belief
B. value
C. attitude
D. motivation
E. perception
Answer:
Market share refers to
A. the ratio of the profit of the firm to the total profits of all firms in the industry,
excluding the firm itself.
B. the ratio of the profit of the firm to the total profits of all firms in the industry,
including the firm itself.
C. the ratio of sales revenue of the firm to the total sales revenue of all firms in the
industry, excluding the firm itself.
D. the ratio of sales revenue of the firm to the total sales revenue of all firms in the
industry, including the firm itself.
E. the ratio of the profits of all firms in an industry to the profits of the firm.
Answer:
At which stage in the product life cycle do industry profits usually peak?
A. introduction
B. growth
C. maturity
D. decline
E. accelerated development
Answer:
Customers can build their own computers with Dell’s online configurator. They simply
have to answer a few questions and choose from a menu of product attributes, prices,
and delivery options. The design of a Dell customized computer is made possible
through the use of a __________.
A. choiceboard
B. permission-based e-mail
C. cookie
D. bot
E. collaborative filter
Answer:
Which of the following is an advantage inherent in the use of licensing?
A. The licensor retains control of its product.
B. The licensor is protected from creating a potential competitor.
C. It provides an exemption from domestic trade regulations.
D. There is an increase in potential profit compared with direct investment.
E. The licensee gains information about the dynamics of the market.
Answer:
Under the concept of the diffusion of innovation, consumers who are leaders in social
setting, and have slightly above average education are called __________ product
adopters.
A. innovators
B. early adopters
C. early majority
D. late majority
E. laggards
Answer:
A waitress at a TGI Friday’s restaurant uses __________ when she asks a party if they
would like another round of drinks.
A. inquiry selling
B. formula selling
C. suggestive selling
D. method selling
E. canned sales presentation
Answer:
A currency exchange rate refers to
A. the unit equivalency of all international currency.
B. the ratio of a nation’s basic unit of currency relative to the price of silver.
C. the ratio of a nation’s basic unit of currency relative to the price of gold.
D. the price of one country’s currency expressed in terms of another country’s currency.
E. the unit of wealth (gold, oil, diamonds, etc.) upon which a nation bases its national
currency.
Answer:
Figure 9-3
Consider Figure 9-3 above. Services can be classified by their method of delivery. Box
B represents
A. equipment-based services.
B. technology-based services.
C. fee-based services.
D. people-based services.
E. nonprofit services.
Answer: