In retailing, a form of ownership that involves multiple outlets under common
ownership is referred to as a(n)
A. corporate chain.
B. consumer cooperative.
C. contractual system.
D. independent retailer.
E. administered system.
Answer:
Which of the following is an advantage of using magazines as an advertising medium?
A. it takes a relatively short time to place the ad
B. the cost of placing a magazine ad is extremely low
C. a magazine ad has a long life
D. it is easy to translate consumer interests into a successful publication
E. there is little need or benefit to incorporate four-color graphics
Answer:
Measures of success refer to
A. the goals the decision maker seeks to achieve in solving a problem.
B. criteria or standards used in evaluating proposed solutions to a problem.
C. identification of acceptable alternatives for collecting data to solve a problem.
D. objective data used to identify the most profitable solution to a marketing problem.
E. subjective data used to identify the most profitable solution to a marketing problem.
Answer:
Stores that carry a considerable assortment (depth) of a related lines of items are
referred to as
A. limited-line stores.
B. general merchandise stores.
C. scrambled merchandise stores.
D. hypermarkets.
E. intertype outlets.
Answer:
A blog refers to
A. a private online forum centered on a specific topic or theme.
B. a running account of all purchases made at a single website.
C. a webpage that serves as a publicly accessible personal journal for an individual or
organization.
D. an itemized list of all website “hits” on an individual person including a short
biographical summary.
E. a web network that works as a family tree linking all members of a group or
organization.
Answer:
Research indicates that __________ of mothers with children under 18 years old will be
online regularly by 2015.
A. 33 percent
B. 50 percent
C. 67 percent
D. 80 percent
E. 95 percent
Answer:
Large shopping areas often contain two or three __________ stores, which are
well-known national or regional stores such as Sears, Saks Fifth Avenue, and
Bloomingdale’s.
A. power centers
B. mega centers
C. anchor
D. value
E. outlet
Answer:
One advantage of using newspapers as an advertising medium is
A. their long life span.
B. the excellent use of color graphics.
C. ads can be clipped and saved.
D. quick consumer response.
E. limited distraction from other features.
Answer:
The World Wide Fund for Nature sponsors an ad showing a person morphing into a fish
with the caption, “Stop Climate Change before it Changes You.” This is an example of
which type of appeal?
A. reminder
B. fear
C. sex
D. pioneering
E. guilt
Answer:
Cross-docking refers to
A. organizing the cost-effective flow of raw materials, in-process inventory, finished
goods, and information from point of origin to point of consumption to satisfy customer
requirements.
B. the practice of storing finished goods in the same trucks from which they will be
dispensed and sold to consumers.
C. using large cargo containers that will be loaded to trucks and then to barges or ships
that sail from port to port and then unloaded back to trucks for final transport and
delivery.
D. a practice that involves unloading products from suppliers, sorting products for
individual stores, and quickly reloading products onto trucks for a particular store.
E. the practice of transporting retail goods from a centralized warehouse to the loading
docks of regionally located satellite warehouses.
Answer:
In the VALS framework, those consumers who are practical and deliberate
information-seekers, and who value durability and functionality in products over styling
and newness are called
A. Experiencers.
B. Achievers.
C. Believers.
D. Thinkers.
E. Innovators.
Answer:
Which of the following statements describes a key difference between advertising and
public relations?
A. Public relations is more expensive on a cost-per-contact basis than advertising.
B. Public relations is usually directly paid while advertising is usually indirectly paid.
C. Advertising provides an immediate feedback loop while public relations does not.
D. Advertising is usually directly paid while public relations has no direct payment to
the media.
E. Public relations always has a much greater reach than advertising.
Answer:
During the planning phase of an IMC program, a firm will identify the target audience,
specify the promotion objectives, set the budget, __________, design the promotion,
and schedule the promotion.
A. pretest the promotion
B. state the mission
C. identify possible advertising or promotional firms
D. carry out the promotion
E. select the right promotional tools
Answer:
Grape-Nuts was one of the first cereals Post Cereal Company ever marketed. It scores
well in brand awareness studies, but recently its sales have been steadily declining.
Rather than assume the product was a “dog,” the Grape-Nuts marketing manager
decided Post should first
A. update the flavor of the cereal by making it slightly sweeter.
B. increase the amounts spent on advertising and sales promotion.
C. do marketing research to identify what needs were not being satisfied.
D. hire additional salespeople who were younger and more assertive to contact grocery
stores.
E. realign Grape-Nuts as a ‘star” and increase production.
Answer:
The objective and subjective attributes of a brand that consumers use to compare
different products and brands are referred to as
A. temporal states.
B. antecedent states.
C. information sources.
D. evaluative criteria.
E. the consideration set.
Answer:
In a supply chain setting, replenishment time refers to lead time for an item, which
means the time between the ordering of an item and when it is
A. billed to the customer.
B. acknowledged by the customer.
C. billed and paid for by the customer.
D. promised for delivery.
E. received and ready for use or sale.
Answer:
Proponents of Do-Not-Track regulations suggest that website owners who use cookies
to collect information about consumers’ shopping habits should only do so
A. with new customers.
B. with consumers’ consent.
C. with repeat customers.
D. when new products are being offered.
E. when competitors use cookies.
Answer:
Target pricing refers to
A. a method of selecting specific prices wholesalers and retailers are willing to pay
based upon the elasticity of each given item.
B. a method of charging different prices to maximize revenue for a set amount of
capacity at any given time.
C. the practice of simultaneously increasing product and service benefits while
maintaining or decreasing price.
D. estimating the price that ultimate consumers would be willing to pay for a product,
then working backward through markups taken by retailers and wholesalers to
determine what price to charge wholesalers.
E. a method of estimating the price that ultimate consumers would be willing to pay for
a product, then determining how much wholesalers wish to charge its customers,
deliberately adjusting the composition and features of the product to achieve the price
to consumers.
Answer:
Social entrepreneurs are usually structured as __________.
A. business firms
B. subchapter S corporations
C. nonprofit organizations
D. governmental agencies
E. 501 (c) 3 for profit organizations
Answer:
Imagine a small retailer saying, “Well, after budgeting for all of our expenses for next
year, we still have about $7,500 remaining for emergencies. Let’s budget 20 percent of
that amount for advertising.” What budgeting technique is the small retailer using?
A. percentage of sales budgeting
B. competitive parity budgeting
C. objective and task budgeting
D. all-you-can-afford budgeting
E. linear forecast budgeting
Answer:
Cross-cultural analysis refers to the study of
A. the subgroups within the larger, or national, culture with unique values, ideas, and
attitudes.
B. the set of values, ideas, and attitudes that are learned and shared among the
consumers of a country.
C. the similarities and differences among consumers in two or more nations or societies.
D. the buying behaviors within a given nation to identify similarities and differences
among individuals.
E. the buying behaviors within a given nation that links a person’s actions to the cultural
group with which he or she identify most.
Answer:
Which of the following would be a source of vertical conflict?
A. Foot Locker decides to open a retail outlet next to a Nike store in a shopping mall.
B. A restaurant serves both Coke and Pepsi to its patrons.
C. Ansible Technologies Ltd. sells its portable planetariums to both colleges and high
schools.
D. Microsoft provides HP laptops more prominent point-of-purchase locations in its
retail stores than comparable laptops from Sony.
E. Long John Silver’s decides to serve grilled burgers in addition to seafood.
Answer:
Business analysis refers to the stage of the new product process
A. where the target markets are selected and resources are allocated to reach them.
B. where the target market segments that show potential are selected and those that do
not are eliminated.
C. that specifies the features of the product and the marketing strategy needed to bring
it to market and make financial projections.
D. where there is a formal accounting of all monies spent on R&D to determine the
return on investment (ROI) that the new product will give back to the firm.
E. that internally and externally evaluates new-product ideas to eliminate those
warranting no further effort.
Answer:
One advantage of using the yellow pages as an advertising medium is
A. there is no competition.
B. the print pages are quicker and easier to use than the Internet.
C. they are more mobile than other information sources.
D. they have excellent coverage of geographic segments.
E. there are no delivery costs.
Answer:
Initially, Facebook targeted which consumer market segment?
A. grade school children ages 6 to 12 years old
B. high school students
C. college students
D. adults with professional occupations
E. senior adults 55 years and older
Answer:
All products go through a product life cycle of __________ stages: __________.
A. two; new and improved
B. two; growth and decline
C. three; new, improved, and obsolete
D. four; awareness, interest, trial, and adoption
E. four; introduction, growth, maturity, and decline
Answer:
Starch Test Image
The Starch test uses a(n) __________ to determine the percentages of those who
remember seeing a specific magazine ad, who saw or read any part of the ad identifying
the product or brand, who read any part of the ad’s copy, and who read at least half of
the ad.
A. attitude test
B. prompted response test
C. inquiry test
D. concept test
E. aided recall test
Answer:
The top reasons cross-channel shoppers research items online before buying in stores
include: (1) the desire to compare products among different retailers; (2) the need for
more information than is available in stores; and (3) the ease of __________.
A. reducing geographical barriers
B. finding new products that are soon to be launched in their area
C. finding products that are more customized to their exact needs
D. finding products that are out of season
E. comparing their options without having to trek to multiple retail locations
Answer:
LG Electronics Inc. has entered into an agreement with Google to offer selected
smartphone models that use a multitouch interface rather than buttons to make calls
with Google’s Android operating system. When the multitouch interface was first
introduced, it was an example of which type of innovation?
A. continuous innovation.
B. discontinuous innovation.
C. disruptive innovation.
D. dynamically continuous innovation.
E. evolutionary innovation.
Answer:
Unit variable cost refers to variable cost expressed
A. as the sum of all units sold.
B. on a per unit basis for a product.
C. as a percentage of total sales.
D. as a percentage of fixed costs.
E. as a percentage of total costs.
Answer:
From an organization’s perspective regarding its new products and innovations, which
of the following new-product strategies has the LOWEST level of risk?
A. a radical invention
B. a brand extension
C. a product line extension
D. a jump in innovation
E. a product refinancing
Answer:
Some Timex wristwatches can be purchased for less than $30 while Rolex wristwatches
may carry a price tag of several thousand dollars. In general, consumers view Timex
watches as being dependable, relatively accurate, and inexpensive timepieces that can
be purchased in drug stores, discount stores, and department stores. The Rolex brand is
perceived as an expensive status symbol distributed in fine jewelry stores or specialty
shops. By using distinctly different pricing and distribution strategies, the marketers of
Rolex watches
A. compete for the same segment through different channels of distribution.
B. develop similar products as Timex but under different names.
C. use a differentiation positioning strategy.
D. compete for the same customers through similar retail outlets.
E. create cognitive dissonance in consumers who purchased Timex wristwatches.
Answer:
The California Pistachio Growers Association has an ongoing ad campaign in which it
encourages people to think of pistachios when they think of good times and good
friends. The ads ask readers to log onto www.pistachios.org to register to win 100
pounds of pistachios for a year plus a trip to California. The association is using a
__________ as a sales promotion.
A. lottery
B. contest
C. premium
D. sweepstakes
E. deal
Answer: