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In industries in which pricing is a key factor, ________ often set the best prices or help
others in setting them.
A) sales departments
B) salespeople
C) production managers
D) line managers
E) pricing departments
Answer:
After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had
kept every promise it made when he booked the room, meeting all his needs. He added
that it was a "thoroughly comfortable and opulent experience." According to Young &
Rubicam's Brand Asset Valuator, this reflects brand ________.
A) valuation
B) esteem
C) relevance
D) differentiation
E) knowledge
Answer:
Sales executives at Keiron Air Conditioners use phone directories to call customers and
convince them to buy their air conditioners. Which form of direct marketing is used
here?
A) telemarketing
B) direct-mail marketing
C) catalog marketing
D) direct-response television marketing
E) kiosk marketing
Answer:
Which of the following states the product's membership in a category and then shows
its point of difference from other members of the category?
A) a mission statement
B) a vision statement
C) a general need description
D) a positioning statement
E) an order-routine specification
Answer:
Which of the following is a disadvantage of using direct mail as an advertising
medium?
A) low audience selectivity
B) no flexibility
C) severe ad competition
D) relatively high cost per exposure
E) lack of personalization
Answer:
At the most basic level of environmental sustainability, a company can practice
________.
A) pollution prevention
B) product stewardship
C) beyond greening activities
D) new clean technology
E) sustainability vision
Answer:
A ________ VMS consists of independent firms at different levels of production and
distribution who join together through formal agreements to obtain more economies or
sales impact than each could achieve alone.
A) corporate
B) contingency
C) contractual
D) communal
E) conventional
Answer:
Which of the following refers to a marketing intelligence technique?
A) interviewing customers randomly
B) increasing the annual budget for R&D
C) investing heavily in primary research
D) implementing product diversification
E) benchmarking competitors' products
Answer:
The customers of Parry's Hair Salon have noticed that the quality of a haircut depends
on who provides it as well as when, where, and how the service is provided. Which of
the following characteristics of service is evident in this instance?
A) service intangibility
B) service inseparability
C) service perishability
D) service variability
E) service distinction
Answer:
George is buying his first house. He has spent a month looking at houses and comparing
attributes such as price and location. He has contacted several real estate agents to look
at different types of houses. George is most likely exhibiting ________.
A) variety-seeking buying behavior
B) complex buying behavior
C) consumer capitalism
D) dissonance-reducing buying behavior
E) marketing myopia
Answer:
Which of the following is NOT a reason that companies use social media?
A) cost effectiveness
B) engagement and social sharing capabilities
C) ease of creating content
D) immediacy and timeliness
E) interactiveness
Answer:
Experience-curve pricing assumes that ________.
A) competitors are weak and not willing to match price cuts
B) competitors are strong and invincible
C) aggressive pricing adversely affects product image
D) volume-based production slows down organizational learning
E) lower-cost technologies are almost always inferior
Answer:
Which of the following product mix pricing strategies involves setting prices across an
entire product range based on cost differences between the products, customer
evaluations of different features, and competitors' prices?
A) by-product pricing
B) product bundle pricing
C) optional product pricing
D) captive product pricing
E) product line pricing
Answer:
New product development starts with ________.
A) concept development
B) idea screening
C) idea generation
D) concept testing
E) test marketing
Answer:
Kellogg's begins to sell its cereals in new markets after conducting extensive marketing
research. After the cereal begins to appear in these new markets, the company increases
its promotion expenditure to counteract competitive responses. Kellogg's is in the
________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption
Answer:
Which of the following is true about the demand curve?
A) A demand curve indicates the drop in the average per-unit production cost that
comes with accumulated production experience.
B) A demand curve indicates the cost per unit of output in the long run.
C) A demand curve indicates the cost per unit of output in the short run.
D) In a monopoly, the demand curve does not indicate the total market demand
resulting from different prices.
E) A demand curve shows the number of units the market will buy in a given time
period at different prices that might be charged.
Answer:
Ferrari sports cars claim superior quality, performance, and style. Ferrari provides
"perfection" at a premium price to keep its brand image intact. Which type of value
proposition does Ferrari most likely position its products with?
A) more for the same
B) more for more
C) less for much less
D) the same for less
E) more for less
Answer:
The interrelated departments within a company that influence marketing decisions form
the ________ environment.
A) cultural
B) economic
C) internal
D) political
E) technological
Answer:
Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many electronic toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory
nodes along the edges. After being charged in the sunlight, the vacuum could run for 7
hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into
table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the
objects in various directions. This is the same type of technology used in the
manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely be
reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a
multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and
several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will
notice it, even if they don't buy it right away."
Evelyn's vacuum is at the ________ stage of the product life cycle.
A) product development
B) introduction
C) growth
D) decline
E) maturity
Answer:
Elmo Corp., a manufacturer of personal computers and printers, recently established an
office furniture exporting business. This is an example of ________.
A) niche marketing
B) local marketing
C) diversification
D) product adaptation
E) downsizing
Answer:
When major chain retailers avoid placing stores in disadvantaged neighborhoods, they
are likely to be accused of the discriminatory practice of ________.
A) embargo
B) licensing
C) redlining
D) puffery
E) scrambled merchandising
Answer:
Alpha Motors offers "Green automobiles for a greener world." This refers to the
________ of Alpha automobiles.
A) brand resonance
B) position
C) brand equity
D) pleasure value
E) added value
Answer:
An American airline company started a grocery chain in Australia. This is an example
of product development.
Answer:
A company getting ready to launch a new product must make several decisions. The
company must first decide on ________.
A) whether to launch the product in a single location
B) whether to launch the product in a region
C) whether to launch the product into full national distribution
D) when to introduce the product
E) when to develop a planned market rollout
Answer:
Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo
and Loopy, on different consumer groups. For the purpose of her study, she divided 20
volunteers into two groups and asked the members of one group to have Kinglo cereal
and the members of the other group to have Loopy cereal for breakfast. She decided to
compare the responses of the volunteers after a week to gain deeper insights into
consumer attitude. In this instance, Juanita is using ________.
A) niche marketing
B) experimental research
C) product differentiation
D) ethnographic research
E) viral marketing
Answer:
Which of the following is the first step in the personal selling process?
A) handling objections
B) follow-up
C) presentation and demonstration
D) preapproach
E) prospecting and qualifying
Answer:
Sigma Inc. has 2,000 Type-A accounts, each requiring 35 calls per year, and 1,000
Type-B accounts, each requiring 15 calls per year. What is the sales force's workload?
A) 15,000 calls
B) 35,000 calls
C) 70,000 calls
D) 85,000 calls
E) 95,000 calls
Answer:
Over the past few years, Binney and Smith's Crayola crayons has expanded to more
than 80 countries around the world. Crayola crayons are in the ________ stage of the
PLC.
A) introduction
B) laggard
C) maturity
D) decline
E) incubation
Answer:
The two major citizen movements to keep businesses in line are environmentalism and
________.
A) consumerism
B) protectionism
C) liberalism
D) capitalism
E) materialism
Answer:
________ refers to how a company will create differentiated value for targeted
segments and what positions it wants to occupy in those segments.
A) Targeted marketing
B) Market segmentation
C) Product positioning
D) Value proposition
E) Niche marketing
Answer:
Which of the following refers to a nonprobability sample in which the researcher selects
the easiest population members from which to obtain information?
A) quota sample
B) judgment sample
C) convenience sample
D) stratified random sample
E) simple random sample
Answer:
Why is the business buying process more formalized than the consumer buying
process?
Answer:
Briefly describe competitive advantage.
Answer:
When demand for toys produced by Bean Toyz was at its highest, manufacturers
purposefully maintained strong demand by limiting supply, which drove the price of
Beanie Babies up. Compare the actions of these manufacturers to the production
concept.
Answer:
Briefly explain why economic communities are formed.
Answer:
Distinguish between the service profit chain and internal marketing.
Answer:
Compare and contrast pure competition and oligopolistic competition.
Answer:
How does direct marketing give buyers access to more comparative information about
companies, products, and competitors?
Answer:
How does a personality symbol impact a brand?
Answer:
What is the FTC three-day cooling off rule? What purpose does the rule serve?
Answer:
What is the main purpose of the executive summary in a marketing plan?
Answer:
Describe the continuity and pulsing advertisement schedules.
Answer:
Why do international markets need to be segmented?
Answer:
Describe the significance of public relations as a mass-promotion tool.
Answer:
Describe the differences between discount stores and off-price retailers.
Answer:
Discuss the four evolving company orientations. Which orientation is considered most
successful and why?
Answer:
Describe the main objectives of reminder advertising.
Answer:
