Acquisition is one of the ways through which a company obtains new products.
When a consumer learns about a new product for the first time and makes a decision to
try it, the consumer is engaged in the alternative evaluation process.
If demand hardly changes with a small change in price, the demand is said to be elastic.
The Do Not Call Registry Act requires Web site operators targeting children to post
privacy policies on their sites.
A business marketer normally deals with far fewer buyers than a consumer marketer
does.
The rise of megaretailers has shifted the balance of power between retailers and
producers. Since megaretailers have access to numerous consumers, they have
significant power when dealing with manufacturers.
The growth rate of a strategic business unit that is classified as a star remains constant
over time.
Pricing strategies usually remain the same as a product passes through its life cycle.
Customer relationship management focuses on retaining existing customers but not on
acquiring new customers.
Retailers are businesses whose sales come primarily from retailing.
People’s orientation to their society has no influence on their consumption patterns and
attitudes toward a marketplace.
Using a differentiated marketing strategy, a company is likely to design a product and a
marketing program that will appeal to the largest number of buyers.
Effective marketing managers take a reactive rather than a proactive approach to the
marketing environment.
The most important issue facing online researchers in the United States is the lack of a
broad cross section of consumers who have access to the Internet.
Cost-based pricing relies on consumers’ perceptions of value to drive pricing.
A product is defined as anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need.
Customer-perceived value is defined as a customer’s evaluation of the perceived
difference between all the benefits and all the costs of a market offering relative to those
of competing offers.
In the BCG matrix, ________ refer to low-growth, high-share businesses or products.
A) stars
B) cash cows
C) question marks
D) dogs
E) heroes
Which of the following promotion mix approaches involves a producer promoting a
product to different channel members who in turn promote the product to customers?
A) direct marketing
B) a push strategy
C) the publish-subscribe method
D) a pull strategy
E) vertical integration
Crowbar Records used to sell its music CDs through a network of retail outlets, record
stores, and music dealers but stopped using these agents with the advent of MP3
technology. Crowbar now sells its music independently on its Web site, through
personal mail, and on social networking sites. Which type of marketing system has
Crowbar most likely adopted?
A) an administered marketing system
B) a contractual marketing system
C) a horizontal marketing channel
D) a direct marketing channel
E) a vertical marketing channel
________ are off-price retailers that operate in huge facilities offering few frills but
ultra-low prices and surprise deals on selected branded merchandise.
A) Warehouse clubs
B) Department stores
C) Convenience stores
D) Specialty stores
E) Superstores
Which of the following represents a change in the technological environment of a
marketing firm?
A) increased use of cause-related marketing
B) increased use of RFID systems to track products
C) increased need to comply with environmental regulations
D) increased use of value marketing techniques and promotions
E) increased need to engage in mass marketing over market segmentation
Which of the following is most likely a true statement about social class?
A) Members of a social class vary drastically in their values, interests, and behaviors.
B) In the United States, the lines between social classes are fixed and rigid.
C) Social classes show distinct product preferences in areas such as clothing.
D) Wealth is a more important variable than education in measuring social class.
E) Consumers of the same age belong to the same social class.
Which of the following is true of strategic planning in a firm?
A) It deals with maintaining the company’s current business ventures.
B) It focuses on the firm’s internal environment rather than the external environment.
C) It occurs at the business-unit, product, and market levels rather than at the corporate
level.
D) It deals with adapting the firm to take advantage of changing marketing
opportunities.
E) It involves preparing short-term investment objectives at the product level.
Which of the following is an economic factor that affects the pricing decisions of a
company?
A) market-penetration practices
B) top management decisions
C) promotional activities
D) reseller policies
E) interest rates
________ are tools that give marketers the detailed measures they need to assess and
adjust their strategies.
A) ERP tools
B) Dashboards
C) BCG matrices
D) Balanced scorecards
E) Value delivery networks
Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It
invites proposals from independent dealers who are willing to set up exclusive
showrooms that only sell Rage’s superbikes. Chosen dealers will sell and service the
superbikes, and Rage will oversee national advertising. This is most likely an example
of a(n) ________.
A) administered vertical marketing system
B) horizontal manufacturing marketing system
C) manufacturer-sponsored retailer franchise system
D) manufacturer-sponsored wholesaler franchise system
E) direct marketing system
Which of the following is most likely a characteristic of the Millennial generation?
A) They have very little knowledge of using digital media.
B) They are a smaller population than Generation X.
C) They are the wealthiest generation in the United States to date.
D) They like to engage in two-way brand conversations.
E) They typically avoid using technology while buying products.
What is the most likely disadvantage of direct investment for an investing company?
A) weak relationships with local distributors
B) minimal investment control
C) product standardization requirements
D) devalued currency risks
E) excessive freight charges
Which of the following is most likely a consequence of permission-based e-mail
marketing?
A) higher return rates
B) excessive spamming
C) increased consumer frustration
D) lower consumer response rates
E) reduced consumer interaction
The ________ concept focuses on meeting a company’s short-term sales, growth, and
profit needs by giving customers what they want now.
A) societal marketing
B) strategic planning
C) sustainable marketing
D) marketing
E) cause marketing
Jeremy Clarkson, a marketing critic, is concerned about the pervasiveness of marketing.
He points to advertising messages everywhere, from Web sites and e-mails to unwanted
direct mail and catalogs to television commercials and product tie-ins to billboards and
store signs. From the description given, it can be concluded that Jeremy is concerned
about ________.
A) high promotion costs
B) cultural pollution
C) deceptive practices
D) false wants and too much materialism
E) the balance between private goods and social goods
Dina loves branded apparel and accessories but cannot afford to buy them too often.
Fortunately, Dina lives close to an off-price retail store that is owned and operated by a
famous brand. The company utilizes this store to sell its surplus, discontinued, or
irregular goods at significantly lower costs. The retail store is best referred to as a
________.
A) category killer
B) factory outlet
C) specialty store
D) superstore
E) power center
Which of the following is most likely a drawback of contract manufacturing?
A) There are low chances of quickly starting the process.
B) There is decreased control over the manufacturing process.
C) There are significant political and economic risks involved.
D) There is little opportunity of later forming a partnership.
E) There is no possibility of buying out the local manufacturer.
Which aspect of niche online social networks makes the medium most appealing to
marketers?
A) They help marketers target the best undifferentiated market segment.
B) They are used by a majority of Internet users in the U.S. and overseas.
C) They cater to the needs of small communities of like-minded people.
D) They guide organizations on how to set up social media networks.
E) They allow marketers to control the conversations on the network.
Which of the following terms refers to a customer’s evaluation of the difference
between all the benefits and all the costs of a market offering relative to those of
competing offers?
A) customer-perceived value
B) customer equity
C) share of customer
D) customer profitability
E) customer lifetime value
A product line is most likely too long if managers can ________.
A) decrease costs by adding items
B) increase market share by adding items
C) increase profits by dropping items
D) decrease costs by dropping items
E) increase profits by adding items
What options are available to a firm that has a product in the decline stage of the
product life cycle? Briefly discuss each option.
Describe the buying behavior and characteristics of different subcultures in the United
States.
Explain product line pricing.
How has the Great Recession of 2008/2009 affected consumer spending in the United
States?
List the consumer rights called for by consumer advocates.
What is sales promotion? What are the various factors that have contributed to the rapid
growth of sales promotion in consumer markets?
Discuss public policy issues, government regulations, and laws that affect new product
development.