According to Maslow’s hierarchy of needs theory, when the most important need is
satisfied, it will cease to be a motivator, and the person will then try to satisfy the next
most important need.
A company cannot stretch its product line downward.
Causal research involves sending observers to watch and interact with consumers in
their natural environments.
Continuous innovation is a weak response by a company trying to protect its market
share.
Though marketers may make long-term gains with high-pressure selling tactics, this
approach can do serious damage to short-term customer relationships.
GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and
profit projections for some new products to find out whether they satisfy the company’s
objectives. This activity is called business product development.
Retail convergence means lower competition for retailers and lower difficulty in
differentiating the product assortments of different types of retailers.
Brand name products give buyers assurances of consistent quality.
The existence of competitors in a market may cause a decrease in total demand.
People differ greatly in their readiness to try new products. In each product area, there
are “consumption pioneers,” also referred to as lagging adopters.
Which of the following product characteristics refers to the degree to which the
innovation appears superior to existing products?
A) compatibility
B) divisibility
C) communicability
D) relative advantage
E) complexity
The buying decision process starts with ________, in which the buyer spots a problem.
A) need recognition
B) information search
C) impulse purchases
D) buyer’s remorse
E) alternative evaluation
________ refers to a practice in which salespeople drop in unannounced on various
offices.
A) Hybrid selling
B) Niche marketing
C) Cold calling
D) Value selling
E) Direct marketing
As production moves up, the average cost per unit decreases because ________.
A) variable costs decrease
B) of increasing diseconomies of scale
C) fixed costs are spread over more units
D) overhead costs decrease
E) revenue increases
When the seller allows only certain outlets to carry its products, this strategy is called
________.
A) exclusive distribution
B) subjective dealing
C) selective distribution
D) exclusive pricing
E) disintermediation
Which of the following Ps in the marketing mix describes the goods-and-services
combination the company offers to the target market?
A) price
B) promotion
C) product
D) place
E) package
Which of the following is true about e-mail marketing messages?
A) E-mail marketing messages involve sending an offer, announcement, reminder, or
sample to a person living at a particular address.
B) E-mail marketing messages involve connecting directly with carefully targeted
consumers, exclusively on a one-to-one, interactive basis.
C) E-mail marketing messages are effective in reaching the desired target market and
result in low costs.
D) E-mail marketing messages cost more per thousand people reached than mass media
such as television or magazines.
E) E-mail marketing messages create a stronger emotional connection with the
customers compared to traditional direct mail.
Which of the following is most likely true about a straight rebuy?
A) Suppliers are not required to focus on quality of products or services delivered.
B) A straight rebuy is far more complex than a new-task situation.
C) A straight rebuy is handled on a routine basis by the purchase department.
D) A straight rebuy occurs only when a buyer wants to pinpoint and procure the best
deal in the market.
E) A straight rebuy involves more opportunities for “out” buyers than do other types of
purchasing situations.
Buyers who face a ________ usually go through all stages of the buying process.
A) straight rebuy
B) modified rebuy
C) new task buying situation
D) routine buying situation
E) need for limited problem solving
Which of the following statements is true of the approaches to marketing strategy?
A) Intrepreneurial marketing applies to companies that sometimes lose their marketing
creativity and passion that they had at the start.
B) As small companies achieve success, they inevitably move away from
more-formulated marketing.
C) Within a company, a single strategy exclusively applies to all different businesses
and products.
D) Formulated marketing seldom involves developing formal marketing strategies and
adhering to them closely.
E) Formulated marketing encourages more marketing initiative and “intrepreneurship”
at the local level.
Marketers describe the way a consumer processes information to arrive at brand choices
as ________.
A) alternative evaluation
B) information search
C) impulse buying
D) consumer capitalism
E) cognitive dissonance
Which of the following is a market-oriented mission statement?
A) “We empower customers to achieve their dreams.”
B) “We sell jumbo burgers.”
C) “We are an online library.”
D) “We are a low-cost airline.”
E) “We make porcelain figurines.”
Target return pricing uses the concept of a(n) ________, which shows the total cost and
total revenue expected at different sales volume levels.
A) BCG matrix
B) break-even chart
C) SWOT analysis
D) demand curve
E) experience curve
Which of the following is an example of trade promotion?
A) manufacturers offering regular value-for-money deals to attract thrifty and
value-conscious customers
B) salespeople engaging in door-to-door selling activities
C) manufacturers offering free merchandise to resellers who feature a certain flavor or
size
D) advertisers claiming that a certain product is the best in the market
E) marketers selling specialty products to a small segment of customers with unique
preferences
Which of the following terms best describes the channels through which two or more
people communicate directly with each other, including face-to-face, mail, e-mail,
texting, or an Internet chat?
A) shared communication channel
B) earned communication channel
C) personal communication channel
D) nonverbal communication channel
E) owned communication channel
Which of the following questions is most important for product designers to consider
while developing a product?
A) Which specific features of the product do customers like most?
B) How does the product appear to buyers?
C) What are the product’s technical specifications?
D) How would customers use and benefit from the product?
E) How can the product be packaged to stimulate instant purchase?
With the help of ________ systems, consumers can avoid watching ads.
A) USB
B) CCTV
C) HDMI
D) DVR
E) XBMC
In the context of product characteristics that influence the rate of adoption, ________
refers to the degree to which the innovation fits the values and experiences of potential
consumers.
A) communicability
B) relative advantage
C) compatibility
D) complexity
E) divisibility
Which of the following is NOT a step in the strategic planning process?
A) defining the company mission
B) setting company objectives and goals
C) designing the business portfolio
D) planning marketing and other functional strategies
E) evaluating members of the company’s value chain
Which of the following is an adverse effect of using promotional pricing?
A) It makes shopping stressful if used by multiple stores simultaneously.
B) It erodes the value of competing brands in the eyes of customers.
C) It gives pricing secrets away to competitors.
D) It creates “deal-immune” customers if used often.
E) It delays the company’s focus on short-term strategies.
Fifty percent of the market is in the hands of Company A, 30 percent is in the hands of
Company B, 15 percent is in the hands of Company C, and the remaining 5 percent is in
the hands of Company D. Based on these hypothetical numbers, Company B is the
market ________.
A) leader
B) challenger
C) follower
D) nicher
E) maven
Solutions selling ________.
A) is often a key business marketing strategy for winning and holding accounts
B) refers to a business buying situation in which the buyer purchases a product or
service for the first time
C) refers to a business buying situation in which the buyer wants to modify product
specifications, prices, terms, or suppliers
D) is equivalent to cold calling
E) refers to a business buying situation in which the buyer routinely reorders something
without any modifications
Karl Harris, a marketing critic, is concerned about the pervasiveness of marketing. He
points out that advertising messages are everywhere, from Web sites and e-mails to
unwanted direct mail and catalogs to television commercials and product tie-ins to
billboards and store signage. Karl is concerned about ________.
A) high packaging costs
B) cultural pollution
C) deceptive practices
D) false wants and too much materialism
E) the balance between private goods and social goods
A market-skimming pricing strategy should NOT be used for a new product when
________.
A) the product’s quality and image support its higher price
B) enough buyers want the products at that price
C) competitors are unable to enter the market
D) competitors can undercut prices easily
E) producing a smaller number of goods is feasible
Evaluate how public policy affects distribution decisions.
Discuss the differences between the three major sales force structures. What are the
potential benefits of each structure?
Briefly explain why, until 2008, Americans amassed record amounts of debt and why
the free-spending trend has ended.
Why is it important for marketers to understand cultural swings?
What is a strategic business unit (SBU)?
How can a marketer increase its ‘share of customer”?