A television advertisement shows several teenagers searching through the refrigerator
for something to quench their thirst. The refrigerator offers the youngsters many
alternativessoft drinks, fruit drinks, sport drinks, and bottles of Sunny Delight drink.
The ad, which shows the teens happily selecting Sunny Delight over all the other
beverages, appeals to the consumers’ __________ for liquid refreshment to quench their
thirst and attempts to shape their __________ for the advertised product.
a. needs; wants
b. wants; needs
c. wants; cravings
d. cravings; needs
e. needs; preferences
Answer:
After offering a promotional allowance, the price of a product returns to its regular
price level. When this happens, the retail store’s gross margin on that product
__________ on those items that were bought with the allowance but not sold during the
special price promotion.
a. decreases substantially
b. increases substantially
c. remains the same
d. fluctuates wildly
e. vanishes
Answer:
HomeWorRx Referral Network profiles home service companies for homeowners
looking for a contractor or handyman. To ensure that companies they recommend are
reliable, HomeWorRx checks the business licenses, insurance coverages, Better
Business Bureau records, and three trade references. The recommended home service
company also has to agree to a(n) __________, which includes maintaining
professionalism and guaranteeing the quality of its work.
a. statement of cultural values
b. statement of values and beliefs
c. industry endorsement
d. code of ethics
e. contract due diligence
Answer:
As of late 2011, the four major retailers of online music include the iTunes, Napster,
Amazon, and Rhapsody. In terms of the form of competition, this industry is an
example of a(n) __________.
a. monopoly
b. mega monopoly
c. pure competition
d. oligopoly
e. monopolistic competition
Answer:
Research that involves trying to determine the extent to which the change in one factor
changes another one is referred to as
a. virtual research.
b. interactive research.
c. exploratory research.
d. descriptive research.
e. causal research.
Answer:
When compared to Generation X, members of Generation Y are more likely to
influence
a. children’s designer clothing lines.
b. health care and insurance.
c. retirement plans.
d. all forms of communication.
e. automobile design.
Answer:
A factor that might doom a product in the marketplace is referred to as a(n)
__________.
a. albatross
b. land mine
c. pit fall
d. showstopper
e. wild card
Answer:
Multichannel marketing refers to
a. selling the same product to the same customers under two distinct brand names.
b. selling the same product to the same customers at two different price points through
two different distributors.
c. the blending of different communication and delivery channels that are mutually
reinforcing in attracting, retaining, and building relationships with consumers who shop
and buy in the traditional marketplace and online.
d. the use of bots to find the best prices and make purchases from multiple websites
simultaneously.
e. the blending of non-electronic communication and delivery channels to counteract
the power of online buying.
Answer:
When a seller represents a price as reduced, the item must have been offered in good
faith at a higher price for a substantial previous period. Former price comparisons are
deceptive if
a. the high price tags were from a previous owner or retailer and were purchased that
way from the reseller, even though that price didn’t originate at the store.
b. the items for sale were part of a manufacturer’s promotional allowance.
c. a high price was set for the purpose of establishing a reference for a price reduction.
d. the items for sale were available at the higher price for less than 30 days.
e. the items were purchased from the manufacturer at a higher price and the sale was
part of a loss-leader promotion.
Answer:
The first Apple iPad was introduced in 2010 at an initial price of $650 for the 16 GB
version. People waited in line overnight so they could be one of the first to own this
unique tablet device. Which pricing strategy did Apple use to help recoup its research
and development costs for the iPad?
a. price lining
b. penetration pricing
c. customary pricing
d. skimming pricing
e. target pricing
Answer:
Web 2.0 is a term that describes
a. the increased functionality of the World Wide Web that increased the interactivity
among users.
b. a technical update of the World Wide Web.
c. the first Internet browser.
d. the decreased degree of interactivity among users.
e. the final published form of web content.
Answer:
The variety of different items a store carries is referred to as
a. the quality of merchandise a store carries.
b. the breadth of product line.
c. a wide assortment of a few related items.
d. the physical size, from large to small, of products within a product line.
e. depth of product line.
Answer:
Which of the following statements about price elasticity of demand is most accurate?
a. Price elasticity with inelastic demand is less than 1.
b. The more substitutes a product has, the less likely it is to be price elastic.
c. Unitary demand represents the relationship between the cash outlay necessary to
purchase a product relative to a person’s disposable income.
d. With inelastic demand, reducing price will result in an increase of total revenue.
e. With inelastic demand, reducing price will result in an increase in total revenue,
although not necessarily an increase in profit.
Answer:
Figure 1.
Figure 1. above indicates that supply chain managers must balance total logistics cost
factors against customer service factors. The four customer service factors (“A,” “B,”
“C,” and “D”) include all of the following EXCEPT:
a. communication.
b. dependability.
c. convenience.
d. place.
e. time.
Answer:
Which of the following statements about the World Trade Organization (WTO) is most
accurate?
a. The WTO is a permanent institution that sets rules governing trade between its
members.
b. The WTO sets rules governing trade between its members and the remainder of the
world.
c. The 153 member countries of the WTO account for approximately 55 percent of
world trade.
d. The WTO uses panels of trade experts who can issue non-binding recommendations.
e. The WTO was formed by the United Nations.
Answer:
The most recent estimate indicates that the population of the world today is about
__________.
a. 5.0 billion
b. 5.7 billion
c. 6.9 billion
d. 7.9 billion
e. 9.4 billion
Answer:
The two major styles of family decision making are
a. joint and judgmental.
b. spouse-dominant and spouse-submissive.
c. joint and spouse-dominant.
d. democratic and autocratic.
e. active and passive.
Answer:
Figure 1.a
As shown in Figure 1.a above, what type of online auction do one seller and many
buyers typify?
a. forward auction.
b. reverse auction.
c. traditional auction.
d. vertical auction.
e. bidder’s war.
Answer:
A(n) __________ question is the simplest form of a fixed alternative question that
allows only a “yes” or “no” response.
a. dichotomous
b. open-ended
c. closed-end
d. attitudinal
e. semantic differential
Answer:
It is relatively easy to measure the incremental cost of a new advertising campaign;
what is not as easy is
a. measuring the extra fixed cost involved.
b. measuring the extra variable cost involved.
c. measuring the incremental revenue generated by the new advertising campaign.
d. determining whether customers who stop buying the product are reacting negatively
to the advertisement or to some other aspect of the product itself.
e. determining what percentage of the ad-generated revenue should be reinvested into
additional advertisements of the same form.
Answer:
Dell, Inc. sells surplus, refurbished, or closeout computer merchandise at its
dellauction.com website to many buyers who bid competitively against one another.
This is an example of a
a. reverse auction.
b. traditional auction.
c. bidder’s war.
d. I-auction.
e. Webfront auction.
Answer:
Advertisers are excited about online TV because
a. ads look better on computer screens.
b. it will offer target audiences who are engaged in the programming.
c. there will be more advertising space available.
d. its utilizes new technology.
e. measuring effectiveness will be easier.
Answer:
All of the following are marketing strategies designed to reduce consumers’ perceived
risk and encourage purchases EXCEPT:
a. securing endorsements from influential people.
b. providing warranties and guarantees.
c. providing free trials of the product.
d. obtaining seals of approval.
e. using subliminal advertising.
Answer:
In the hierarchy of effects, the consumer’s ability to recognize and remember the
product or brand name is referred to as the _________ stage.
a. adoption
b. evaluation
c. awareness
d. interest
e. trial
Answer:
The form of competition where just a few companies control the majority of industry
sales is referred to as __________.
a. pure competition
b. cross-market competition
c. an oligopoly
d. monopolistic competition
e. a monopoly
Answer:
Experts suggest that online retailers should think of their websites as __________ if
they are to attract and retain customers.
a. cash cows
b. dynamic billboards
c. virtual reality stores
d. traditional retail stores
e. online entertainment
Answer:
IDEO is a company that
a. creates innovative promotional programs for its clients’ new products.
b. is a highly formalized firm that commercializes new products for its clients.
c. rates new products like Consumer Reports.
d. develops and designs new products for other organizations.
e. runs patent searches for companies that don”t have and internal legal department.
Answer:
If Jane Westerlund, owner of a retail frame store, raises the average price of a framed
picture to $100 and the cost of goods sold is $36, what is the percentage markup on
selling price?
a. 36 percent
b. 56 percent
c. 64 percent
d. 100 percent
e. 178 percent
Answer:
When audiences are allowed to preview actual movies (a ‘sneak preview”) such as
Harry Potter and the Deathly HallowsPart 2 and Star Trek so that changes might be
made before they are released to the general public, during which stage of the
new-product process does this occur?
a. market testing
b. business analysis
c. commercialization
d. screening and evaluation
e. concept testing
Answer:
Michael Porter has identified four key elements to explain why some companies and
industries succeed globally while others fail. These four elements are collectively
referred as
a. the balance of trade wheel.
b. the points of difference effect.
c. the trade feedback effect.
d. the international trade pyramid.
e. the diamond of national competitive advantage.
Answer:
The notion that a service organization must focus on its employees before successful
programs can be directed at customers is referred to as
a. internal analysis.
b. internal marketing.
c. external marketing.
d. stakeholder marketing.
e. employee marketing.
Answer:
Mark manages a small family-owned amusement park. He believes the park can
increase its profits if its owners will buy three food concession trailers. Mark has
contacted three dealers of such trailers, which come fully customized to user
specifications. After receiving three bids, Mark concluded that Century Industries has
the best price. He will present only the Century Industries information to the family
tomorrow. What buying center roles does Mark perform?
a. gatekeeper and buyer
b. decider and gatekeeper
c. buyer and decider
d. influencer and buyer
e. influencer, gatekeeper, and decider
Answer: