Wholesaling includes all the activities involved in selling goods or services directly to
final consumers for their personal use.
Suppliers, customers, and employees have ready access to a company’s intranet.
The pure selling approach in marketing is exclusively associated with tangible items.
A truly sustainable marketing strategy should actually reduce prices in the long-term
because it encourages more efficiency and less waste.
The idea of buzz isn’t really new, but the magnifying effect that technology has on the
spread of buzz is new.
The first step in planning a channel strategy is to determine what markets need to be
reached.
Advertising and marketing are interchangeable terms.
Failing to provide equal access to customers who appear economically disadvantaged is
both unethical and illegal.
One firm’s business ethics may be different from another firm’s business ethics.
Planning means that an organization develops objectives while in the process of taking
action.
A belief that your family is more important than your job is an example of a cultural
value.
A CRM strategy allows a company to identify its best customers, stay on top of their
needs, and increase their satisfaction.
When a gift shop decided to begin selling Blue Ridge pottery, it was modifying its
merchandise mix.
The largest adopter category is the early adopters.
Brand managers may push too hard with coupons or other price incentives to the point
that customers will refuse to buy the product without these promotions.
The effectiveness of product strategies depends on the managers who carry them out.
To calculate lifetime value, a company would estimate the amount of money a person
would spend with the company over a lifetime and then subtract what it will cost the
company to maintain this relationship.
Reverse logistics are becoming even more important as more firms seriously consider
sustainability as a competitive advantage.
Commercialization comes in the middle of the new-product development process.
CRM programs facilitate communication from a company to its customers and from
customers to the company.
Planning a public relations campaign is a two-step process: develop objectives and then
execute those objectives.
Customer relationship management (CRM) programs are often called interactive
marketing programs.
After segmentation, the customer group selected by a firm is referred to as the target
market.
On a cost per contact basis, personal selling is much more expensive than national
advertising.
The main pursuit of the World Trade Organization (WTO) is to guarantee basic human
rights in all markets.
Data are raw, unorganized facts.
In 2012, women were more likely than men to marry someone with less education.
A company that uses data mining is unlikely to need a data warehouse, as the
company’s data is constantly in use.
The purchase of a shopping product typically involves habitual consumer decision
making.
Operational plans focus on the long-term execution of the marketing plan performed by
top-level management.
The belief that a high price for a product means high product quality is an example of a
heuristic.
One of the two purposes of laws governing businesses in the United States is to make
sure that businesses compete fairly with each other.
Using the just-in-time model, a manufacturer doesn’t produce a product until a customer
orders it.
Unlike direct marketing, personal selling focuses on direct communication with a
consumer or business customer.
A country that is shifting from an agricultural based economy to an industrial based
economy is known as a developing country.
________ is an agreement between two brands to work together in marketing a new
product.
A) Manufacturer branding
B) Cobranding
C) Franchising
D) Family branding
E) Aggregated branding
There are several different sports watches for cyclists. When compared to its
competitors, the Bike Nashbar watch is the least expensive. The Acumen Basic is the
only one designed for older cyclists who prefer a larger display. Sports Instrument is the
most comfortable of all the available watches. This describes the ________ of the three
sports watches.
A) marketing mixes
B) mass marketing strategies
C) market positions
D) consumer orientations
E) selling orientations
Which of the following statements about the lifetime value of a customer is true?
A) CRM helps companies identify their customers’ lifetime value.
B) All customers have the same lifetime value.
C) A customer’s lifetime value is easy to calculate.
D) A company can either increase customer share or a customer’s lifetime value, but not
both.
E) The value of the customer is related to the value of the brand.
________ is the extent to which research measurement techniques are free of errors.
A) Flexibility
B) Validity
C) Responsiveness
D) Reliability
E) Representativeness
Consumed consumers are people who ________.
A) have been “fired” as customers
B) are manipulated by societal marketing techniques
C) experience consumer addiction
D) participate in social networking
E) become commodities themselves
Advertising, sales promotion, public relations, direct marketing, and personal selling
are all parts of the ________.
A) target market strategy
B) pricing strategy
C) product strategy
D) promotional strategy
E) distribution strategy
You are looking to advertise your new product, and you want good mass-marketing
coverage and low cost per exposure. You should go with ________ as your advertising
medium.
A) directories
B) place-based media
C) branded entertainment
D) advergaming
E) television
Which of the following is true of information stored in departmental ‘silos’?
A) Such information is best described as structured data.
B) Such information is best described as unstructured data.
C) Such information is unlikely to be shared with other departments in the firm.
D) Such information is typically gathered from indirect sources.
E) Such information is typically gathered by channel partners.
In the business market, organizational customers purchase products from the fishing
and agricultural industries to use in their finished products. These are examples of
________.
A) component parts
B) accessory equipment
C) processed materials
D) MRO products
E) raw materials
When McDonald’s purchased Donato’s Pizza and a controlling interest in Chipotle
Mexican Grills, the company was pursuing a ________ strategy.
A) market development
B) product penetration
C) market penetration
D) diversification
E) product development
Which of the following is the term for the firms and individuals who help move a
product to the consumer or the business user?
A) third-party logistics providers
B) channel leaders
C) channel intermediaries
D) enterprise resource planners
E) strategic allies
McDonald’s placement of a small toy in each Happy Meal as a reward for coming to the
fast-food restaurant and ordering its food is based on which theory of learning?
A) operant conditioning
B) cognitive dissonance
C) cognitive learning
D) classical conditioning
E) observational learning
Which of the following is a question that a marketing manager would use an MDSS
rather than an MIS to answer?
A) What were our company sales of each of our products during the past month?
B) What are the best media for reaching a high percentage of heavy users of our
product?
C) What changes in sales are happening in our industry?
D) If we change our media schedule by replacing a certain media buy with a new media
buy, will we reach more users of our product?
E) What are the demographic characteristics of consumers whose purchase patterns are
changing the most?
________ is a type of data collection in which the researcher simply records the
consumer’s behaviors.
A) Mall intercept
B) Observation
C) Survey
D) Focus group
E) Neuromarketing
Of the following, which type of data collection method is likely to have the lowest
response rate?
A) mail questionnaire
B) focus group
C) online focus group
D) case study
E) face-to-face interview
One of the barriers to greater reliance on ________ is the difficulty of gauging its
effectiveness.
A) online advertising
B) catalog marketing
C) direct mail
D) sales promotion
E) public relations
Lobbying, or building and maintaining relations with legislators and government
officials to influence legislation and regulation, is part of ________.
A) outdated business ethics
B) media relations
C) reactive PR
D) crisis management
E) public relations
In some states, unfair trade practices acts are designed to ________.
A) regulate the markups used by various industries
B) control the sale of agricultural products and raw materials
C) regulate all forms of psychological pricing
D) prohibit the selling of products below cost
E) ban the use of price lining
A(n) ________ is a good or service for which consumers will spend time and effort
gathering information on price, product attributes, and product quality.
A) impulse product
B) homogeneous product
C) shopping product
D) convenience product
E) emergency product
In which of the following situations would personal selling be the LEAST cost-effective
choice?
A) a manufacturer selling a line of running shoes to a chain of department stores
B) an automobile dealer selling luxury cars
C) a real estate agent selling a home
D) a chain of supermarkets selling convenience products
E) a computer systems firm selling hardware and software to a large business
Every society has a set of deeply held beliefs about right and wrong ways to live, which
are referred to as ________.
A) demographics
B) social norms
C) cultural dimensions
D) cultural values
E) customs
A sports entertainment company wants to research how Canadians spend their free time.
It is preparing a survey that will be used in all of Canada, including the province of
Quebec. Unlike Canadians from other provinces, the people of Quebec primarily speak
French. The researchers are planning to use English and French versions of the survey.
In preparing the surveys, they should use ________.
A) back translation
B) nonprobability sampling
C) probability sampling
D) syndicated research
E) cross-tabulation
In a(n) ________ structure, there are a relatively small number of sellers, each holding
substantial market share, in a market with many buyers.
A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition
When setting prices, a leading manufacturer of nutritional supplements decided to
institute a pricing strategy that would support a five percent increase in sales over the
next three years. What type of pricing objective has the company set?
A) profit
B) sales
C) competitive effect
D) cost-plus
E) value
Factors that increase a firm’s emphasis on ________ include purchases that are “new
tasks” for a customer and transactions that require negotiation.
A) m-commerce
B) mass marketing
C) public relations
D) direct marketing
E) personal selling
The division of buyers into groups based on lifestyle or personality characteristics is
________ segmentation.
A) behavioral
B) psychographic
C) values
D) demographic
E) needs
Many countries outlaw ________, a practice in which a company prices its products
lower than they are priced at home.
A) gray marketing
B) parallel importing
C) black marketing
D) dumping
E) countertrading
A marketer of hair care products targeted at African American women created an
advertising message that told the women their hair could be worn any way they wanted,
not just straight. The message suggested the women did not need to conform to the
mainstream media definition of beauty. It is most accurate to say that this ad was based
on an understanding of ________.
A) social class
B) the family life cycle
C) self-concept
D) lifestyle
E) sensory marketing
Which of the following is a pricing strategy that turns the typical assumption about
price-demand relationships on its head?
A) penetration pricing
B) price bundling
C) assimilation effect pricing
D) placebo effect pricing
E) prestige pricing
Stop-N-Go and Circle K’small stores that serve consumers willing to pay a higher price
for the ease of buying staples close to home”are ________.
A) specialty stores
B) convenience stores
C) supermarkets
D) hypermarkets
E) off-price retailers
A(n) ________ is a comprehensive examination of a particular firm or organization.
A) focus group
B) case study
C) longitudinal study
D) expert panel
E) ethnographic study
A fast-moving consumer good, also known as a(n) ________, is a low-cost good that
people consume quickly and replace frequently.
A) impulse product
B) emergency product
C) consumer packaged good
D) specialty good
E) shopping product
The coordination of marketing communication efforts to influence attitudes or behavior
is known as ________.
A) promotion
B) advertising
C) marketing
D) public relations
E) the communication model
Marketers must balance the ________ of mass marketing with the ________ of offering
each individual customer exactly what he wants.
A) efficiency; effectiveness
B) effectiveness; efficiency
C) investment; cost
D) cost; investment
E) positioning; scale
An email from Amazon.com offers free shipping on your next purchase of more than
$35. This is an example of ________.
A) sales promotion
B) personal selling
C) public relations
D) stealth marketing
E) viral marketing
How do channel members add value to a distribution channel?
Why is it important to consider marketing as an investment rather than as an expense?
Describe the basic market research process.
The owner of a successful independent book store has been thinking lately that she
either needs to find a new location or expand this one as she stumbles over boxes of
books in the cramped space. What type of research design should she use to determine
how her customers feel about the current store? Why?
Allyson Godwin plans on setting up a small business where she will offer quilting
lessons, sell material and quilting kits that she will create, and market her own
creations. Last year her quilting skills earned her $2,000. She estimates that quilting as
a full-time business will earn $10,000 during her first year. She has budgeted five
percent of her sales estimate to be spent on promotion. What promotion method is
Godwin using? What are the advantages and disadvantages of this method?
What are the disadvantages and advantages associated with test marketing?
Why do so many products fail to make it past the introduction stage of the product life
cycle?
Compare and contrast the structure and uses of exploratory research and descriptive
research.
Explain the major steps in the target marketing process.
Explain the concept of trial pricing. Why would a retailer implement this pricing
strategy?
Services are characterized by four key characteristics. Name and describe these four
characteristics.
Explain the difference between elastic demand and inelastic demand.
Campbell’s Soup advertised new uses for soup in lunches and dinners to encourage
customers to eat more soup. The company also conducted promotions aimed at
attracting users of competing soup brands. What growth strategy was Campbell’s
implementing? Explain.
Barnes & Noble has many retail stores as well as a presence on the web. What are the
concerns of Barnes & Noble regarding the relationship between the company’s store
sales and web sales?
Give an example of how global retailers have adjusted their offerings to meet the needs
of different populations around the world.
How can a marketer determine the effectiveness of a banner ad on a website?
You work for a travel agency. Business has been slow, and you want to suggest some
promotions targeted to specific market segments. What three demographic
segmentation variables would you recommend using?