When The Candy Store sets a low initial price in order to get its “foot in the door” and
to quickly attract a large number of buyers, the company is practicing market-skimming
pricing.
Companies in several industries have recognized the buying power of the LGBT
segment of the U.S. population and have begun explicitly targeting these consumers
with gay-specific ads and marketing efforts.
Sales of products decline because of technological advances, shifts in consumer tastes,
and increased competition.
Gatekeepers have formal or informal power to select or approve the final suppliers.
Consumers who have no past experience with a product are especially likely to judge it
by its price.
Ross Stuart is a purchasing manager in a Texas-based manufacturing company. He
sources most of the raw materials needed by his company from Kramer Corp. However,
Ross is unhappy with Kramer’s prices. Additionally, he thinks that the quality of the raw
materials supplied by Kramer is sub-standard. Which of the following stages in the
business buying process is Ross’ company currently in?
A) general needs description
B) product specification
C) problem recognition
D) order-routine specification
E) performance review
Which of the following is an advantage offered by co-branding?
A) Manufacturers do not have to invest in creating their own brand names with
co-branding.
B) Co-branding allows retailers to sell exclusive products that cannot be purchased
from competitors.
C) Co-branding allows a company to expand its existing brand into a category it might
otherwise have difficulty entering alone.
D) Co-branding dilutes brand equity and increases the appeal of store brands.
E) Co-branding does not involve complex legal contracts and licenses.
Each department in a company that carries out value-creating activities can be thought
of as a link in the company’s ________.
A) channel of intermediaries
B) external value stream
C) demand chain
D) internal value chain
E) supplier chain
The ________ is specifically focused on the future welfare of consumers.
A) strategic planning concept
B) direct marketing concept
C) societal marketing concept
D) consumer business concept
E) telemarketing concept
Which of the following statements about income distribution in the United States is
NOT true?
A) Over the past several decades, the rich have grown richer.
B) Over the past several decades, the middle class has grown phenomenally.
C) Over the past several decades, the poor have remained poor.
D) The top 20 percent of earners capture over 50 percent of all income.
E) The top five percent of American earners get nearly 22 percent of the country’s
adjusted gross income.
A(n) ________ consists of a set of buyers who share common needs or characteristics
that the company decides to serve.
A) marketing channel
B) citizen-action group
C) distribution channel
D) target market
E) customer franchise
________ is the process of developing and maintaining a crucial fit between the
organization’s goals and capabilities and its changing marketing opportunities.
A) Benchmarking
B) SWOT analysis
C) Market segmentation
D) Strategic planning
E) Diversification
While developing an effective integrated communication, once the target audience has
been defined, marketers must ________.
A) determine the desired response
B) collect feedback
C) choose the media through which to send a message
D) select the message source
E) design a message
Total government spending is determined by ________.
A) legal treatises
B) marketing efforts
C) elected officials
D) court rulings
E) technology needs
Apollo Couriers, a company providing international express mail services, has a
proactive customer communications team. The primary job of this team is to identify
situations that led to customer dissatisfaction, and then provide quick remedies to fix
the problems. This has helped Apollo in winning customer loyalty to a great extent. In
this instance, Apollo has benefitted from ________.
A) product differentiation
B) good service recovery
C) multibranding
D) place marketing
E) co-branding
Josh received an e-mail stating that he had won a lottery of $500,000 from Lottors
Corporation. The e-mail asked Josh to send his bank account details and social security
number to transfer cash directly to his account. Josh did not remember buying any
lottery tickets, and so was apprehensive about providing his bank details without
verification. Which of the following is illustrated from this scenario?
A) adware
B) viral marketing
C) telemarketing
D) cyberbullying
E) phishing
Which of the following would most likely be included in the written materials prepared
by PR professionals to reach and influence target markets?
A) employee code of conduct
B) annual reports
C) memorandum of association
D) advertisement jingles
E) white papers
Which of the following is a valid source of secondary data?
A) personal letters and correspondence
B) Internet search engines
C) ethnographic research
D) direct surveys
E) interviews
What is the LEAST relevant question to ask when assessing a firm’s main competitor?
A) What are the competitor’s objectives?
B) What is the competitor’s strategy?
C) What are the competitor’s strengths?
D) What are the competitor’s locations?
E) What are the competitor’s weaknesses?
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy
truck industry. Although Reliable Tools only has 15 customers, the company is the sole
supplier of hub and axle components to those customers. Monthly sales at Reliable
Tools are approximately $1 million. “You might say we have all our eggs in one
basket,” says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but
large accounts. Ninety-five percent of Reliable Tools’ customers are located in
Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively
short. However, given the nature of the industry, time spent with each customer is
crucial.
Before calling on a prospect, the salesperson should learn as much as possible about the
organization and its buyers. This step is known as ________.
A) preapproach
B) closing
C) approach
D) presentation
E) prospecting
Which of the following statements is most likely true regarding the competitive-parity
method?
A) This method involves starting with total revenues, deducting operating expenses and
capital outlays, and then devoting some portion of the remaining funds to advertising.
B) It is based on the availability of funds rather than on opportunities.
C) It wrongly views sales as the cause of promotion rather than as the result.
D) In this method, promotion budgets are set to match competitors’ outlays.
E) This method involves setting the promotion budget at a certain percentage of current
or forecasted sales.
Briefly describe how economic conditions impact a firm’s pricing strategies.
What is a category killer? Provide an example and a description of a category killer.
Explain how and why marketers go beyond selling a product or service to create brand
experiences.
Describe three public policy issues or regulations that marketers should carefully
consider as they make decisions about adding or dropping products.
What is product position? What functions do perceptual positioning maps serve?
How do resellers answer criticism of the high costs of distribution?
Give two examples of product bundle pricing.
Internet marketing practices have raised a number of ethical and legal questions. Why is
invasion of privacy perhaps the number-one online marketing concern?