Data that has already been collected or published is:
A. useful data.
B. secondary data.
C. primary data.
D. free data.
E. rarelyif everuseful for marketing decision making.
Coca-Cola runs an advertising campaign on morning radio shows encouraging current
customers to “have a Coke in the morning” instead of their morning coffee. This is an
example of:
A. Market development.
B. Product development.
C. Diversification.
D. Market penetration.
E. Mass marketing.
The packaging design for a new flavor of Ben and Jerry’s ice cream is an aspect of
which component of the marketing mix?
A. Place
B. Price
C. Product
D. Promotion
Which of the following statements by a U.S. president best reflects a MICRO view of
marketing?
A. “A tax cut will give consumers more spending money.”
B. “With interest rates low, many young people can now afford to buy a new home.”
C. “In the United States we have a better choice of products than in any other country.”
D. “My administration will spend 75 percent more on purchases related to domestic
security during the next year.”
E. “Tourism firms should advertise more to attract more international visitors.”
Transportation helps to
A. make products available when they’re needed.
B. achieve economies of scale in production.
C. make products available where they’re needed.
D. make exchange easier.
E. All of these alternatives are correct.
Which of the following are NOT “business and organizational customers?”
A. Wholesalers
B. Manufacturers
C. Financial institutions
D. Government units
E. All of these ARE business and organizational customers.
Which of the following statements about total quality management (TQM) is false?
A. Before widespread adoption of TQM, most firms assumed that production defects
were an inevitable part of mass production.
B. Japanese producers of cars, electronics and cameras showed that production defects
were not inevitable.
C. From a TQM perspective, the cost of lost customers is a minor consequence of poor
quality.
D. From a customer’s point of view, getting a defective product and having to complain
about it is inconvenient.
E. TQM methods have been applied to implementation problems other than
manufacturing.
Which of the following is the BEST example of a “generic market?”
A. The adult “personal expression” market
B. The roller blade market
C. The female exercise shoes market
D. The sports drink market
E. The sporting goods market
The innovators are the group of customers who
A. have fewer contacts outside their own social group or community.
B. tend to have the greatest contact with salespeople.
C. tend to avoid risk and wait to consider a new idea after many early adopters have
tried itand liked it.
D. tend to be older, less well educated, and cling to the status quo thinking it is the
safest way.
E. are likely to be mobile and have many contacts outside their local social group and
community.
The situation that provides the greatest opportunity for suppliers that don’t currently
serve a customer to develop inroads with a customer is the:
A. straight rebuy.
B. modified rebuy.
C. new-task buying.
D. virtual trade show.
E. competitive bid process.
When an online ad is delivered to a person’s computer based on previous websites that
person has visited, this is called:
A. pay-per-click targeting.
B. pioneering targeting.
C. pay-per-view targeting.
D. copy thrust targeting.
E. behavioral targeting.
The adoption process refers to the steps individuals go through on the way to accepting
or rejecting a new idea.
The best way to reach EARLY adopters is through:
A. impersonal and scientific information media.
B. salespeople and mass media.
C. innovators.
D. the mass media.
E. opinion leaders.
Lori Winters, a regional sales manager, is interested in the profitability of the different
sales reps in her region. She has used a variety of different approaches for allocating
fixed sales expenses to the different sales reps, but she reaches very different
conclusions depending on which allocation approach is used. In this case, it would be
wise for Ms. Winters to supplement her other analyses with an analysis based on
A. the contribution-margin approach.
B. the full-cost approach.
C. the marketing audit approach.
D. All of these are correct.
“Soak” is a retailer with two locations in a major metropolitan area, both of which are in
large, popular shopping centers. It carries a unique assortment of high-quality shower
and bath products, such as soaps, bubble bath, and bath oils. One of its most popular
products is a “bath bomb”a round ball that fizzes and releases aromatic bath oils when
placed in a bathtub filled with warm water. The small staff at the store is very
knowledgeable about the store’s products and provides a high level of customer service.
“Soak” would be classified as a:
A. Convenience store.
B. Department store.
C. Discount house.
D. Specialty shop.
E. General store.
Words, symbols, or logos that are legally registered for use by a single company are:
A. Trademarks.
B. Brand names.
C. Brand marks.
D. Service marks.
E. Watermarks.
The role of price in a market-directed economy is to:
A. allocate resources and distribute income according to consumer preferences.
B. serve as a rough measure of the social importance of consumer goods and services.
C. coordinate the economic activity of many people and institutions.
D. serve as a rough measure of the value of resources used to produce goods and
services.
E. All of these are true.
“Advertising”:
A. is the only form of mass selling.
B. is also called ‘sales promotion.”
C. is concerned with “promotion” using samples, coupons, and contests.
D. involves direct spoken communication between sellers and potential customers.
E. is any paid form of nonpersonal presentation of ideas, goods, or services by an
identified sponsor.
Regarding marketing cost analysis,
A. the full-cost approach usually should be used as there are almost always some fixed
costs to be allocated.
B. the contribution-margin approach focuses attention on variable costs.
C. fixed costs should be allocated according to the contribution-margin approach.
D. the action implications will be the same whether the full-cost or contribution-margin
approach is used.
E. the contribution-margin approach provides the most complete allocation of total
expenses.
New-product specialists at Whirlpool buy washing machines made by other firms and
take them apart to look for new ideas. This is called
A. reverse engineering.
B. positioning.
C. S.W.O.T. analysis.
D. concept testing.
E. clustering.
Which of the following countries has the highest population density?
A. Switzerland
B. United States
C. Australia
D. Singapore
E. Bangladesh
Considering weight, the most expensive transporting mode is:
A. pipelines.
B. railroads.
C. trucks.
D. inland waterways.
E. airfreight.
What is the level of involvement in a purchase decision for a small kitchen appliance?
A. Extensive.
B. Limited.
C. Low.
D. Moderate.
E. Routine.
When a company is trying to decide which type of smartphone to purchase for its sales
staff and has never had to make that specific type of purchase before, this buying
situation is called a(n):
A. Straight rebuy.
B. New-task buy.
C. JIT buy.
D. Modified rebuy.
E. ISO 9000 buy.
A cash discount of 3/15, net 30 means that:
A. The buyer gets a 15 percent discount off the face value of the invoice if the invoice is
paid within 3 days.
B. The buyer gets a 3 percent discount off the face value of the invoice if the invoice is
paid within 15 days.
C. The buyer makes a 3 percent down payment on the face value of the invoice within
15 days; the remainder is due in 30 days.
D. The buyer gets a 3/15 (20 percent) discount if the invoice is paid within 30 days.
E. None of these alternatives is correct.
The scientific method in marketing research
A. forces an orderly research process.
B. is an informal approach to define problems.
C. is not a valid decision-making approach.
D. is based on hunches rather than evidence.
E. makes guesses about what will happen in the future.
Convenience (food) stores:
A. have no competitors.
B. charge about the same prices as nearby supermarkets.
C. try to earn better profits by high margins on a narrow assortment which turns over
quickly.
D. offer greater width of assortment but less depth than most supermarkets.
E. None of these alternatives is correct for convenience (food) stores.
As a percentage of GDP, which of the following most likely characterizes logistic costs
incurred in developing economies in Africa?
A. Less than 9 percent
B. 9 to 12 percent
C. Approximately 12 percent
D. Approximately 15 percent
E. 25 to 30 percent
Beth Sahadi usually buys Sassoon shampoo because she likes its smell. But this
morning her local drugstore was out of Sassoon, so she decided to buy another highly
advertised brand that was on sale because she really needed to wash her hair that night.
For Beth, Sassoon has probably achieved brand:
A. preference.
B. insistence.
C. nonrecognition.
D. rejection.
E. extinction.
Ideally, a good marketing mix should:
A. be very similar to the marketing mix typically used by key competitors.
B. be determined by which marketing mix costs the least.
C. not include much advertising because it’s expensive and usually isn’t very effective.
D. flow logically from all the relevant dimensions of a target market.
“Price fixing” means:
A. changing a price that was set at the wrong level by the financial manager.
B. pricing a product that will be sold in a foreign market at a level below the cost of
production.
C. selling products of like grade and quality to different buyers at different prices.
D. a firm consciously setting its prices.
E. competitors getting together to raise, lower, or stabilize prices.