Firms selling consumer goods or services often try to reach thousands or millions of
individuals or households. Firms selling to organizations
a. try to reach tens of millions of wholesalers, retailers, and government units.
b. are restricted to far fewer buyers.
c. hope to obtain similar numbers of nonconsumer customers.
d. forgo the purchase
e. simultaneously purchase from organizational buyers and ultimate consumers.
Answer:
A wiki is a
a. web page that serves as a publicly accessible personal journal and online forum for
an individual or organization.
b. business-oriented website that lets users create profiles for professional networking.
c. unique type of Internet browser where search results are personalized for each user.
d. website where users create a personal profile, add “friends,” and exchange messages
and photos with them.
e. website whose content is created and edited by the ongoing collaboration of end
users.
Answer:
A prototype is a(n)
a. miniature version of an actual new product used in concept testing to identify any
changes that need to be made prior to full commercialization.
b. full-scale operating model of the product under development.
c. sample of a new product given to prospective customers and opinion leaders used to
generate awareness prior to the product’s commercial release.
d. simulated operating model of the product given to consumers to use in full-scale field
testing.
e. a digital version of a product produced in multiple shapes, colors, and sizes to
determine which version of the product customers like best.
Answer:
“To persuade” is the promotional objective of which stage of the product life cycle?
a. early growth
b. growth
c. accelerated development
d. maturity
e. introduction
Answer:
Which of the following countries is the world’s leading exporter?
a. United States
b. China
c. India
d. Germany
e. Japan
Answer:
Geographical Pricing Map B
According to the Geographical Pricing Map B above, if products are shipped from
Denver, which of the following statements would be most accurate?
a. A firm shipping products from Denver would charge customers in Miami and New
York a lower price than customers who live in Dallas or Seattle.
b. Customers in Minneapolis and Nashville would be charged $60.
c. Customers in Dallas and Phoenix pay the same price.
d. Customers in Nashville pay less shipping than customers in Minneapolis.
e. All customers receiving products from Denver will pay the same shipping fee.
Answer:
Which of the following countries is the world’s leading importer?
a. United States
b. China
c. India
d. Germany
e. Japan
Answer:
People in the finance and the human resources departments traditionally operate at what
organizational level?
a. functional level
b. corporate level
c. top management level
d. strategic business unit level
e. stakeholder level
Answer:
An ad for Mercedes Benz cars showed a heart-shaped box of chocolates with one of the
chocolates topped with the well-recognized Mercedes logo. There was no mention of
the company name or sign of a product in the ad. This ad was an example of
__________ advertising.
a. competitive institutional
b. competitive product
c. advocacy
d. pioneering product
e. reminder institutional
Answer:
Figure 1.
According to Figure 1. above, people who currently do not use a firm’s product or
service but who might become users in the future are referred to as
a. leads.
b. prospects.
c. potential users.
d. ultimate consumers.
e. undefined prospects.
Answer:
While it is possible for a multichannel retailer to somewhat cannibalize its catalog
business with its online retailing, the positive tradeoff is
a. there is greater product awareness.
b. online retailing is a greater relationship-building medium.
c. an online transaction costs about half as much to process as a catalog order.
d. consumers make more impulse buys.
e. online retailing can provide the consumer with a more tangible decision-making tool.
Answer:
A product in the introduction stage of its product life cycle should have which of the
following marketing objective(s)?
a. gain awareness and stimulate trial
b. stress differentiation
c. foster brand loyalty
d. gain as much distribution as possible
e. target a marketing niche
Answer:
Which of the following statements describes the key difference between merchant
wholesalers and agents and brokers?
a. Merchant wholesalers don”t perform all channel functions and agents and brokers do.
b. Agents and brokers only deal with consumer channels.
c. Agents and brokers make their profits based on the sales of merchandise they own,
while merchant wholesalers make profits based on fees paid for their services.
d. Merchant wholesalers take title to merchandise and agents and brokers do not.
e. Agents and brokers take title to merchandise and merchant wholesalers do not.
Answer:
The _________ is defined as the group of prospective buyers toward which a promotion
program is directed.
a. directed audience
b. intended audience
c. promotion audience
d. selling audience
e. target audience
Answer:
Groupon built its business model on the premise that
a. consumers would be receptive to online sweepstakes.
b. businesses would be willing to post their 30-second TV advertising on a social
network.
c. consumers would want to “check in” and earn points and badges for visiting
businesses.
d. consumers would band together and try a new product or service if businesses would
offer lower prices to entice them to take advantage of a daily “deal” offered to them.
e. consumers would be willing to pay for fun and exciting online video games that are
playable on their smartphones and tablet devices.
Answer:
A discontinuous innovation is a product that
a. disrupts consumer’s normal routine but does not require totally new learning.
b. requires no new learning by consumers.
c. is not purchased by innovators and early adopters.
d. initiates obsolescence of a product class.
e. requires consumers to learn entirely new patterns of behavior and product usage.
Answer:
The dimension of service quality called __________ is willingness to help customers
and provide prompt service.
a. assurance
b. reliability
c. responsiveness
d. empathy
e. sympathy
Answer:
Which of the following statements about world trade flows is most accurate?
a. The United States is the world leader in terms of GDP (gross domestic product).
b. The relative position of the United States as a supplier to the world has increased
because of an absolute growth in exports.
c. The United States is running a continuing trade surplus because it has the world’s
largest gross domestic product.
d. The United States’ relative role as an exporter has decreased in the area of aerospace
during the past five years.
e. During the past 30 years, the relative position of the United States in terms of GDP
has remained stable despite the fact that actual value of products and services has
increased.
Answer:
You can go to your nearest Hallmark card store and buy a birthday greeting card for a
friend and pay $4.50. Or, you can buy a Hallmark card from its new $0.99 line of
greeting cards that is not quite as nice in terms of quality materials, but just as
sentimental, that are sold at Barnes and Noble bookstores. This is an example of
a. mass customization.
b. organizational synergy.
c. one product and multiple market segments.
d. price discrimination.
e. a “Tiffany/Walmart” strategy.
Answer:
The view that holds that online shopping and buying can add to one’s comfort or saves
work and time is referred to as _________.
a. timeliness
b. expediency
c. convenience
d. utilitarian
e. marketspace value
Answer:
Several improvements in technology and business practice tools contributed to Google’s
success. Google developed its patented __________ algorithm that evaluates the entire
link structure of the Internet and uses the link structure to determine which pages are
most important.
a. PageLeaf
b. PageFolio
c. PageRank
d. PageCall
e. PageTag
Answer:
__________ is the financial ratio that measures the inventory turnover rate.
a. Markup
b. Selling price
c. Return on investment
d. Stockturn rate
e. Markdown
Answer:
A business student is preparing for the Graduate Management Admission Test (GMAT)
so he can get into a good graduate business school. He knows that any money he spends
on a tutor will be well worth it if he can improve his scores. He’s heard that there is a
great tutor in his local community but has no idea who she is. What is the next logical
step in order for marketing to occur?
a. He should buy a GMAT study guide at the bookstore.
b. He should find out what the minimum score he needs to get into the school of his
choice.
c. He should check for ads for tutors in the college and local papers, ask his friends,
look for flyers by her on a bulletin board in the business college student lounge, etc.
d. He should consider alternatives to graduate school in case the scores he receives on
his own are not sufficient admission.
e. He should apply for delayed admission if he can”t find this tutor.
Answer:
Offering a Champion brand heart pacemaker with features needed by Asian patients is
an example of Medtronic’s
a. market segmentation and targeting strategy
b. price strategy
c. place strategy
d. promotion strategy
e. product/service strategy
Answer:
Connie Walker was happy with her newly purchased laptop. It had all the features she
wanted, including wireless capability and a DVD drive. In addition, the $1,200 price tag
was reasonable. As she took the computer out of the box, Walker noticed an
advertisement in the local paper showing a similar computer that was on sale for only
$1,000. Suddenly, Walker began to doubt her purchase decisionmaybe she hadn”t gotten
such a good deal. Walker was most likely experiencing
a. buyer’s remorse.
b. cognitive dissonance.
c. selective discord.
d. product dissonance.
e. product uncertainty.
Answer:
An important feature of customer-driven supply chain management is its application of
__________ that allows companies to share and operate systems for order processing,
transportation scheduling, and inventory and facility management.
a. wholesaler cooperatives
b. mathematical and statistical models
c. sophisticated information technology
d. continuous inventory management
e. standardized distribution protocols
Answer:
Channels are typically designed to satisfy one or more of four consumer buying
requirements. When a membership book club allows its members to use the Internet to
notify the company whether they want to receive the next month’s issue, the book club
is appealing to which buyer requirement?
a. information
b. convenience
c. variety
d. pre- or postsale services
e. adaptability
Answer:
Mystery shoppers are people
a. hired by a firm to get legal, though not necessarily ethical, information about
competitive firms.
b. hired by a firm’s employees to prove to the courts that competitors are using unfair
pricing practices.
c. hired by a customer to report on illegal or unethical practices that are regularly taking
place at a particular establishment.
d. who pose as customers to check on a firm’s products or services and are paid to write
a detailed report on their experiences.
e. hired by law firms to check on the safety of their clients’ products.
Answer:
Generation X is defined as the generation of children born __________.
a. between 1946 and 1964
b. between WWI and WWII
c. between 1965 and 1976
d. between 1977 and 1994
e. since the millennium
Answer:
When a company uses a(n) _________, it is using its own advertising staff to provide
the advertising services needed by the company.
a. intra-firm agency
b. promotion department
c. in-house agency
d. full-service agency
e. limited-service agency
Answer:
For which of the following products is a manufacturer most likely to use basing-point
pricing?
a. pet food
b. furniture
c. crystal glass bowls
d. coal
e. cut flowers
Answer: