The RedCap Corporation is committed to social responsibility. It is looking for a new
shipping partner and has found LogiSpec, one that seems to be perfect since it employs
individuals with disabilities, contributes a portion of profit to the local school system,
and allows its employees to work on flex-time. RedCap is very interested in LogiSpec’s
attention to social responsibility. However, its pricing is almost 12% higher than other
shippers RedCap is considering. The fact that RedCap’s decision has to balance the
company’s desire for social responsibility and investors’ desires for profits is an
example of a(n) responsibility.
a. ethical
b. legal
c. cost
d. philanthropic
e. economic
A forecasting method that predicts sales based on relationships between past sales and
one or more independent variables is called .
a. regression analysis
b. customer forecasting surveys
c. the Delphi technique
d. random factor analysis
e. time series analysis
Mike’s Roadside Market buys produce from farmers, marks the merchandise at a price
that includes some profit, and then sells the fruit and vegetables to the people in and
around Centerville. Mike’s would be classified as part of a _____ market.
a. consumer
b. producer
c. government
d. reseller
e. wholesaler
If Best Western, a leading global hotel chain, bundles its rooms with services such as
free local phone calls, cable television, wireless Internet access, and complimentary
breakfast, these services are known as services.
a. core
b. supplementary
c. bundled
d. intangible
e. complimentary
Because of its highly efficient and low-cost distribution system, Andro Stores Inc., a
multinational retail corporation, has an edge over its rivals. Andro’s competitors will
find it difficult to reproduce such a distribution system in the foreseeable future. It is
clear, then, that Andro has a(n) over its competition.
a. effective competitive advantage
b. absolute advantage
c. sustainable competitive advantage
d. controllable advantage
e. comparative advantage
Location is important to a retailer because:
a. suppliers charge more to service stores in certain trading areas.
b. a desirable location appeals to consumers’ emotions.
c. location is the major determinant of store image which attracts a certain category of
consumers.
d. location determines the trading area from which a store must draw its customers.
e. convenient location is an essential customer service element.
The Council of Better Business Bureaus and the FTC make up the National Advertising
Review Board (NARB).
a. True
b. False
The process people use to determine the value of a product is not highly scientific.
a. True
b. False
Advertising used in the decline stage may prolong the life of the product.
a. True
b. False
Price competition is a very flexible marketing strategy.
a. True
b. False
Which of the following statements about labeling is false?
a. Labels can be used to facilitate the identification of products.
b. Labels can avoid disclosing the nutritional information of products.
c. Labels can include product features.
d. Labels can include potential presence of allergens.
e. Labels can strengthen an organization’s promotional efforts.
Nick Arnold’s Plumbing Repair Company would best be described as a(n)______
product.
a. convenience
b. unsought
c. specialty
d. durable
e. shopping
Determine the mean fitilizing resource the functional area of marketing, production,
finance,
research and development, and human resources to achieve the organization’s goals.
a. corporate strategy
b. business-unit strategy
c. marketing strategy
d. mission statement
e. marketing mix
At what point does a firm maximize profit?
a. The point at which marginal cost equals marginal revenue
b. The point at which the firm sells its product at the highest price
c. The break-even point plus the adjusted marginal cost
d. The point at which marginal profits equal marginal revenue
e. The point at which marginal cost equals marginal profits
Which of the following represents the different types of shopping centers that exist?
a. Neighborhood, regional, superregional, power, and strip malls
b. Community, rural, urban, and traditional business districts
c. Outlet, power, lifestyle, superregional, regional, neighborhood, and community
d. Outlet malls, lifestyle, strip malls, and shopping malls
e. Freestanding, convenience, traditional, and regional
Zerex markets its radiator liquid to different markets; one as a coolant and the other as
antifreeze. Which of the following segmentation variables is being implemented by
Zerex?
a. Demographic variable
b. Psychographic variable
c. Lifestyle variable
d. Geographic variable
e. Behavioristic variable
An individual can have a high income and very little wealth.
a. True
b. False
Which of the following is an advantage that self-regulatory agencies such as the BBB
and the NARB have over governmental laws and regulatory agencies?
a. Firms must strictly abide by the rulings of self-regulatory agencies.
b. Establishment and implementation are usually less expensive.
c. They have better tools to enforce their rulings.
d. Guidelines are often stricter and create greater compliance from firms.
e. Money is very rarely an issue in enforcing decisions of self-regulatory agencies.
Traditional advertising is unlimited in terms of interactivity.
a. True
b. False
What is the effect of NAFTA on the international trade of United States and Canada?
What are the major components of a media plan? What limitations must be considered
as the media plan is implemented?
What is Maslow’s hierarchy of needs? List the five levels in Maslow’s hierarchy of
needs.
Discuss how event sponsorship can be used as a public relations tool.
How can companies use information technology as a competitive advantage?