As the demand for portable CD players fell, so did the demand for blank CD-Rs
because the demand for CD-Rs is an example of a(n) _____ demand.
a. joint
b. inelastic
c. elastic
d. fluctuating
e. derived
Answer:
The U.S. government limits the amount of sugarcane that is imported into the country.
This is an example of a tariff.
a. True
b. False
Answer:
Wine Spectator is a magazine that targets people who appreciate good wine and food.
However, the discriminating reader of this magazine is also interested in travel and
health, so the magazine features travel and health-related stories. This publication relies
on _____variables to identify its target market.
a. psychographic
b. demographic
c. usage rate
d. geodemographic
e. family life cycle
Answer:
A group of services that support or enhance the core service is called:
a. secondary services
b. peripheral services
c. additional services
d. supplementary services
e. complementary services
Answer:
Many advertisements use celebrities who are liked by many people in hopes that
consumers will buy the product that the celebrity endorses. Using celebrities to
influence consumers to buy the product is an example of which advertising appeal?
a. Consciousness
b. Love or romance
c. Fun and pleasure
d. Admiration
e. Resonance
Answer:
____ is the element in the promotional mix that evaluates public attitudes, identifies
issues that may elicit public concern, and executes programs to gain public
understanding and acceptance.
a. Personal selling
b. Advertising
c. Mass communications
d. Public relations
e. Sales promotion
Answer:
Who offers low-interest loans to developing nations?
a. World Bank
b. International Monetary Fund
c. Federal Reserve
d. International Reserve
e. United Nations
Answer:
Which form of advertising involves an organization expressing its views on
controversial issues or responding to media attacks?
a. Advocacy
b. Persuasive
c. Issue
d. Comparative
e. Image
Answer:
All of the following are basic marketing mix decisions EXCEPT:
a. sales
b. price
c. product design
d. place (distribution)
e. promotion
Answer:
During the growth stage of the product life cycle:
a. there is little emphasis on the distribution strategy
b. demand for the product is limited to high-income consumers
c. prices increase due to economies of scale
d. there is decreased direct competition
e. profits peak
Answer:
With relationship selling, the salesperson would spend most of his or her contact time
with the prospect talking about the product because the salesperson does not want to
waste the customer’s time.
a. True
b. False
Answer:
Diaz
John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop
called Diaz in a small upper- middle-class neighborhood. It rapidly became popular
because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees
from around the world, plus coffee-making necessities such as grinders and brewers.
Within ten years, Diaz was operating a lucrative mail-order business in addition to his
coffee shop. Upon entering the shop, the first thing the customer sees is a countertop
crowded with all of the machinery needed for making a perfect cup of coffee.
Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one
wall hold books about coffee for patrons to read while they sip. The smell is
intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they
leave. The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300
per pound Kopi Luwak from Sumatra.
Refer to Diaz. The type of merchandise carried by Diaz is deep but with a narrow
assortment. The store would most likely be classified as a:
a. convenience store.
b. mass merchandiser.
c. specialty store.
d. category killer.
e. membership club.
Answer:
BoiseCascade
Boise Cascade comprises two businesses.
Boise Cascade Building Materials Distribution is one of the largest wholesale building
materials distributors in the United States. The firm’s 33 distribution facilities market a
wide range of building products and services to retail lumber dealers, home
improvement centers, and industrial accounts nationwide.
BoiseCascadeWoodProductsmanufactures plywood, lumber, particleboard, and
engineered wood products (laminated veneer lumber, I-joists, and laminated beams) at
20 manufacturing facilities in the United States and Canada. The firm’s wood products
are used primarily in housing, industrial construction, and a variety of manufactured
products. The wood products are sold to retail lumber dealers, home centers
specializing in the do-it- yourself market, and industrial customers.
Refer to Boise Cascade. Boise Cascade’s excellent supplier relationships allow the
company to provide the best value on the top brands in the industry. Because Boise
Cascade has confidence in its suppliers’ reliability and integrity, a high degree of
_____exists between the firm and the suppliers.
a. trust
b. tomo
c. amae
d. reciprocity
e. derived demand
Answer:
The number of firms a company must face, the relative size of these firms, and the
degree of interdependence within the industry are all part of its ______environment.
a. demographic
b. economic
c. political
d. competitive
e. social
Answer:
All of the following are types of reference groups EXCEPT:
a. primary
b. secondary
c. personal
d. aspirational
e. nonaspirational
Answer:
The use of trade shows:
a. is not an important aspect of sales promotion.
b. can help companies identify new prospects.
c. does not help introduce new products.
d. does not enhance corporate morale.
e. is a disadvantage in that it is usually impossible to display the product itself.
Answer:
A European dairy that is famous for its rich ice creams has introduced basil-, tomato-,
fennel-, and oregano- flavored ice creams. In the process of developing these new
flavors, the dairy surveyed world-famous chefs to determine which nontraditional
flavors had the greatest level of marketability. This survey would have happened during
which stage of the product development process?
a. Concept testing
b. Brainstorming
c. Basic research
d. Idea screening
e. Applied research
Answer:
Water transportation is by far the most expensive mode of transportation, but it is also
the most reliable.
a. True
b. False
Answer:
When Alan buys rock-climbing equipment, he will only buy Black Diamond, Petzl,
Edelweiss, or Wild Country brands even though other brands exist. These listed brands
make up Alan’s awareness set.
a. True
b. False
Answer:
In a survey for her marketing class, Alicia interviewed 80 randomly selected men and
asked them their opinions of women with tans. Her initial results showed that the men
overwhelmingly believed tans were a health risk. When she conducted the same survey
again using the same methodology, she discovered that 50 percent of the surveyed
population in the second group found women with tans sexy. This is most likely an
example of a ____ error.
a. representational
b. random
c. nonprobability
d. frame
e. reliability
Answer:
CollegeDecision
Juan is a senior in high school and is deciding which university to go to after he
graduates. He has received several pieces of mail from local universities with
information on scholarship opportunities because he has a good GPA and a high ACT
score. He and his parents have visited several schools and have talked to advisors
regarding his chosen major of marketing. Juan is thinking about going to the local
community college where all of his friends are planning to go, but his parents want him
to go to a more prestigious school because they think he will get a better education
there.
Refer to College Decision. Juan’s parents’ opinion that he will get a better education if
he attends a prestigious school rather than a community college is an example of:
a. selective distortion
b. selective retention
c. selective exposure
d. selective bias
e. selective attitude
Answer:
A firm has maximized its profits when its marginal revenue exceeds its marginal cost.
a. True
b. False
Answer:
Which of the following statements describes an advantage to retailers associated with
developing their own brands?
a. Dealers must market the brand, thus cutting into the gross margin.
b. Higher profit margins are available on private brands.
c. Private brands, particularly those owned by discounters, are perceived to be of a
higher quality.
d. Dealers often buy in large quantities and thus always have a ready supply.
e. Private brands are normally delivered more promptly by the manufacturer.
Answer:
Jack’s Pet Store offers customers who purchase pet food a “Baker’s Dozen” card. After
customers purchase 12 bags of pet food from Jack’s, they get the 13th bag free. The
Baker’s Dozen card is an example of a:
a. directed coupon mailing.
b. sweepstakes.
c. loyalty marketing program.
d. trade sales promotion.
e. sampling program.
Answer:
Another commonly used term for accessory equipment is installations.
a. True
b. False
Answer:
Maribeth and Asher are trying to think of someplace to take their kids this weekend.
Asher thinks it might be fun to take the kids to Coco Key, an indoor waterpark located
in a nearby city. However, since no one in the family has ever been to Coco Key before,
they will be unable to assess the of the waterpark until they actually visit.
a. tangible attribute
b. experience quality
c. creative quality
d. credence quality
e. heterogeneity feature
Answer:
ChoiceHomes,Inc.
Choice Homes, Inc., based in Texas, built its reputation by building high-quality new
homes, often at prices less than “used” ones. Choice Homes used mass purchasing
power, innovative hightech communications among employees to coordinate the
building process, and other entrepreneurial strategies to hold costs down. Its homes are
primarily targeted at first-time homeowners-to-be in an effort to get people out of
apartments so they can experience the “American Dream” of home ownership for the
same price as rent. Choice Homes later developed the “Choice Classic” brand name for
higherend homes targeted at wealthier dualincome couples. The Choice Classic name
was designed to capitalize on the reputation of Choice Homes, especially for current
Choice home owners who are ready to “move up” to a larger home. Recently, Choice
Homes started a third line of homes called “Reflections,” which are expensive,
custom-designed homes located in exclusive, prestigious neighborhoods.
Refer to Choice Homes, Inc. The three different brands of homes (Choice, Choice
Classic, and Reflections) represent the firm’s:
a. line portfolio.
b. mix depth.
c. line breadth.
d. product line.
e. product itemization.
Answer:
Nonprobability samples:
a. require more expensive marketing research than probability sampling
b. include any sample in which little is done to obtain a representative cross section of
the population
c. by definition must be representative of the population
d. often start out with random numbers to ensure selection of subjects is truly random
e. offer an easy method for determining sampling error
Answer:
Patrick goes to the movies three or four times each week. He operates a blog where he
writes long, detailed reviews of the latest releases. Patrick’s blog would best be
described as a:
a. media sharing blog.
b. Microblog.
c. noncorporate blog.
d. collaborative blog.
e. corporate blog.
Answer:
The increase in social media usage has dramatically changed marketing strategies and
how companies interact with target markets.
a. True
b. False
Answer:
KraftFoods
Kraft Foods has established dedicated teams to focus on their business with many of
their largest customers. With “Team Kroger,” Kraft has combined with Nabisco selling
organizations in order to bring more unique shopper insights to Kroger supermarkets.
This helps Kroger understand their shoppers and customize their programs to grow
even more. At the same time, Kraft has strengthened its relationship with Kroger by
gaining a better understanding of the supermarket’s needs and how it can help support
Kroger’s business objectives concurrently with its own.
Refer to Kraft Foods. The sales team in Bentonville, Arkansas, devotes all of its efforts
on satisfying the needs of its largest customer, Walmart. This is an example of a sales
force organized by:
a. geographic region
b. product line
c. market
d. industry
e. individual client or account
Answer:
All of the following are product characteristics influencing the rate of adoption
EXCEPT:
a. complexity.
b. compatibility.
c. relative advantage.
d. observability.
e. distribution.
Answer:
TeslaMotors
“Going green” doesn”t have to be boring. The Tesla Roadster Sport is an electric car
that goes from 0 to 60 in four seconds and drives more like a race car than an
environmentally friendly ride. But that level of performance will set you back
$128,500. As of 2009, Silicon Valley”based Tesla Motors, Inc. was the only company
offering highway compatible electric cars. Most Roadster Sport buyers are car
enthusiasts and are buying them for the “fun toy” aspect of having an electric car rather
than for environmental reasons.
Refer to Tesla Motors. The price of the Roadster was set so that the marginal revenue
equals marginal cost. This represents a ______approach.
a. profit maximization
b. market share pricing
c. demand-oriented pricing
d. sales maximization
e. status quo pricing
Answer:
Rayshawn’s favorite soft drink is CocaCola. If he orders a Coke at a restaurant and is
told that the restaurant serves only Pepsi products, he will often just order water rather
than order a Pepsi. He insists that he can tell the difference between the two brands.
Which learning concept is Rayshawn demonstrating?
a. Selective retention
b. Stimulus discrimination
c. Perceptual generalization
d. Selective generalization
e. Stimulus generalization
Answer: