To increase the number of dogs boarding at its facilities, Muntz Kennels mailed
coupons to dog owners who lived within a 25-mile radius of the facility. The printing
and postage costs for the mailing plus the coupon redemptions would appear in which
major expense category on the company’s income statement?
a. general
b. administrative
c. fixed
d. selling
e. variable
Answer:
Younger members of Generation Y, also known as __________, are determined to make
a difference in the world, and by doing so, make the world a better place.
a. activists
b. sustainers
c. progressives
d. reformers
e. millennials
Answer:
In 2008, about 80 percent of U.S. consumers owned a digital camera because it is easy
to use, is relatively inexpensive, and allows images to be uploaded and shared online.
And Kodak’s sales of digital cameras have been good, moving from a “question mark”
to a “cash cow.” But in the near future, Kodak’s digital camera sales may flatten due to
high household penetration, the economic downturn, and increased competition. As a
result, its new digital camera sales may come mostly as replacement sales for existing,
not new customers. Kodak expects this SBU may become(may remain) a __________
in the near future.
a. question mark
b. star
c. hedgehog
d. cash cow
e. dog
Answer:
The Federal Trade Commission (FTC) considers a product “new” only
a. for a period of one year after it enters regular distribution.
b. if it is functionally different from a competitor’s product.
c. until a new and improved version of the same product is produced.
d. for a period of six months after it enters regular distribution.
e. for a period of seventeen years at which time patent rights are returned to the public
domain.
Answer:
Some studies estimate that __________ of a consumer’s buying decisions are made in
the store.
a. 20%
b. 33%
c. 40%
d. 60%
e. 75%
Answer:
People posing as customers, who are paid to check on the quality of a company’s
products and services and write a detailed report on the experience, are referred to as
__________.
a. mystery shoppers
b. customer ombudsmen
c. secret customers
d. Facebook “likers”
e. repeat customers
Answer:
An assumptive close refers to __________.
a. asking the prospect to make a decision on some aspect of the purchase
b. allowing the prospect to use or lease the item on a limited temporary basis before
making a final commitment of purchase
c. committing the prospect quickly by making references to the time limits of the
purchase
d. making an exchange of money or other unit of value
e. asking the prospect to make choices concerning delivery, warranty, or financing
terms
Answer:
The owner of your local KFC franchise had a good year with rising revenues and
reduced operating costs that resulted in a personal income of approximately $100,000.
One-third of that was taken for local, state, and federal income taxes and another third
went to pay for a home mortgage, car payments, food, clothing, and other necessities.
What is the remaining third called?
a. gross income
b. bonus income
c. discretionary income
d. disposable income
e. profit
Answer:
Buyers are interested in having numerous competing and complementary items from
which to choose. The buyer requirement for __________ is satisfied through the
breadth and depth of products and brands that intermediaries carry.
a. information
b. convenience
c. variety
d. pre- or postsale services
e. adaptability
Answer:
Each phase of the strategic marketing process creates its own unique type of output
report. Which of the following would be associated with the evaluation phase?
a. performance reviews for key personnel
b. corrective action memos, triggered by comparing results with goals, often using the
firm’s marketing dashboards and metrics
c. sales reports using the firm’s marketing metrics and dashboards
d. action memos that tell who is to do what by when
e. marketing plans that define goals with the relevant metrics and the marketing mix
strategies to achieve them
Answer:
All of the following are examples of posttests EXCEPT:
a. inquiry test
b. sales test
c. attitude test
d. unaided recall test
e. jury test
Answer:
A firm may forgo higher profit on sales and follow which of the following pricing
objectives because it wants to recognize its stakeholder obligations?
a. profit
b. market share
c. unit volume
d. survival
e. social responsibility
Answer:
Figure 1.
The product life cycle shown in “C” in Figure 1. above is an example of a __________
product.
a. high-learning
b. fashion
c. low-learning
d. fad
e. generalized
Answer:
What type of management policies specify whom salespeople should contact, what
kinds of selling and customer service activities should be engaged in, and how these
activities should be carried out?
a. sales response management policies
b. territorial management policies
c. account management policies
d. customer management policies
e. salesforce management policies
Answer:
Which of the following is a cost-oriented approach to pricing?
a. skimming pricing
b. prestige pricing
c. loss-leader pricing
d. experience curve pricing
e. bundle pricing
Answer:
Retailing is an important marketing activity. Not only do producers and consumers meet
through retailing actions, but retailing also creates __________.
a. the nation’s largest source of tax revenues
b. the largest source of charitable contributions
c. limited utilities for consumers
d. customer value
e. a sense of community
Answer:
Marketing refers to
a. the activity for creating, communicating, delivering, and exchanging offerings that
benefit the organization, its shareholders, and employees.
b. the activity for creating, communicating, delivering, and exchanging offerings that
benefit its customers, the organization, its stakeholders, and society at large.
c. the activity for creating, communicating, delivering, and exchanging offerings that
benefit the organization, its shareholders, and customers.
d. the activity for creating, communicating, delivering a product or service to a specific
segment of the market, and providing the greatest customer value at the highest possible
price.
e. the activities of advertising, promoting, and selling products to the greatest number of
potential customers while simultaneously meeting the needs of the customer and
organization.
Answer:
The Wall Street Journal and USA Today each have a national distribution of more than
a. 500,000 readers.
b. 1 million readers.
c. 2 million readers.
d. 5 million readers.
e. 10 million readers.
Answer:
Jakubowski Farms Gourmet Bread Base is the brand name for a mix designed for use in
bread machines. The mixes are sold in 2-pound canisters for $14.99 plus postage. The
products are only available through the mail. People learn about the product through
word-of-mouth and bread machine demonstrations the company’s founder gives to
groups in Wisconsin where she lives. This is a description of the company’s
a. action plan.
b. market segmentation strategy.
c. mission statement.
d. marketing mix.
e. target market.
Answer:
In the sneaker business, Heelys initially was practicing __________ positioning with
sneakers that were similar in consumers’ minds, so it introduced a line of Heelys
sneakers that came with an imbedded, detachable wheel in the shoe’s heel.
a. head-to-head
b. parallel market
c. lateral
d. repositioning
e. differentiation
Answer:
The online consumers who regularly visit their favorite bookmarked websites and spend
the most money online are referred to as “__________.”
a. hunter-gatherers
b. brand loyalists
c. click-and-mortar
d. hooked, online, and single
e. time-sensitive materialists
Answer:
The North American Industry Classification System (NAICS)
a. provides common industry definitions for North America, Central America, and
South America to measure economic activity in these three Western Hemispheric areas.
b. provides common industry definitions between Canada the United States to measure
economic activity and reduce barriers of trade for cross-border firms.
c. provides a classification system for products and services that is consistent across
Canada, Mexico, and the United States.
d. provides a classification system for products and services that is consistent across
North America, Central America, and South America to measure economic activity in
these three Western Hemispheric areas.
e. provides common industry definitions for Canada, Mexico, and the United States to
measure economic activity in the three member countries of the North American Free
Trade Agreement (NAFTA).
Answer:
Setting one price for all buyers of a product or service is referred to as __________.
a. customary pricing
b. one-price policy
c. flexible-price policy
d. standard markup pricing
e. uniform pricing
Answer:
The 80/20 rule is most closely related to which consumer segmentation variable?
a. geographic
b. psychographic
c. benefits sought
d. geographic
e. usage rate
Answer:
A trademark is a device that can take almost any form, as long as it is capable of
identifying and distinguishing specific products or services. Owens-Corning Fiberglas
Corporation’s trademark is an example of a product that is protected by
a. combination of letters and designs.
b. product shape.
c. picture.
d. logo.
e. color.
Answer:
Frito-Lay produces and markets potato chips in Russia that have seafood flavor. This is
an example of
a. product integration.
b. product invention.
c. product adaptation.
d. product customization.
e. product extension.
Answer:
Figure 1.
Figure 1. above depicts the communication process, which consists of ten key elements
(“A” through “J”). The position labeled “G” is referred to as __________.
a. noise
b. the message
c. the feedback loop
d. the field of experience
e. feedback
Answer:
Agreements between two or more independent firms to cooperate for the purpose of
achieving common goals are referred to as
a. compacts.
b. global partnerships.
c. strategic alliances.
d. free trade agreements.
e. economic coalitions.
Answer:
Several companies produce latex gloves that are used in a variety of different industries.
If one of the glove manufacturers decreases its price by just a few percentage points, it
will result in a significant increase in quantity demanded. The demand for latex gloves
is
a. synergistic.
b. inelastic.
c. unitary.
d. elastic.
e. entropic.
Answer:
All of the following are examples of economic espionage EXCEPT:
a. wiretapping
b. misrepresentation
c. bribery
d. “dumpster diving” or searching a competitor’s trash.
e. employment contract violations
Answer:
Figure 1.
Which of the following forms of direct marketing has the highest response rate
according to Figure 1. above?
a. direct mail
b. e-mail
c. paid search
d. telemarketing
e. advertising
Answer: