Which of the following is a similarity between raw materials and component parts?
a. Both fail to retain their identity in final products.
b. Both become part of the final product.
c. Both are unprocessed extractive products.
d. Both are more expensive than accessory equipment.
Answer:
A marketing plan should:
a. be viewed as a series of sequential steps.
b. be developed independently of the external business environment.
c. define the business mission.
d. exclude budgets and pricing.
Answer:
Which of the following statements is true of the Great Recession?
a. It was the largest economic downturn since the Great Depression.
b. Its impact was limited to the United States.
c. It began in 1993.
d. The economy recovered from the Great Recession in 2007.
Answer:
A market-oriented organization targets its products at “everybody” or “the average
customer.”
a. True
b. False
Answer:
In the context of the portfolio matrix, a _____ has low growth potential and a small
market share.
a. question mark
b. problem child
c. star
d. dog
Answer:
A subculture is a homogeneous group of people who renounce the values of an overall
culture.
a. True
b. False
Answer:
Which of the following statements is true about yield management systems (YMS)?
a. They are used to eliminate the problem of simultaneous production and consumption
from services.
b. They are restricted to use only in service industries.
c. They are complex pricing systems used to establish price equilibrium.
d. They are used to make profitable use of the unused capacity of perishable goods.
Answer:
Which of the following is the first stage involved in creating an effective social media
plan?
a. Listening to customers
b. Setting social media objectives
c. Defining strategies
d. Identifying the target audience
Answer:
Which of the following statements is true about population trends in the United States?
a. Rural areas posted their first-ever net loss of population in 2012.
b. Less than a thousand households contain at least two adult generations.
c. Baby boomers are now the smallest population group.
d. Tweens are now the largest population group.
Answer:
A company’s assets include patents, copyrights, and technology that are superior to
those of the competition.
a. True
b. False
Answer:
A market-oriented firm:
a. defines its mission in terms of the benefits its customers seek.
b. targets the average customer.
c. is highly centralized.
d. defines its business in terms of the goods and services it produces.
Answer:
Which of the following is a difference between a retailer channel and a wholesaler
channel?
a. A retailer channel is most common when the retailer is large and can buy in large
quantities, while a wholesaler channel is commonly used for low-cost items that are
frequently purchased.
b. A retailer channel must be organized and managed as a group, while a wholesaler
channel must be managed individually.
c. A retailer channel helps differentiate a firm’s final product from the competition,
while a wholesaler channel does not.
d. A retailer channel enables a retailer to use another manufacturer’s already-established
product, while a wholesaler channel does not.
Answer:
Applied research:
a. is primarily conducted to broaden knowledge base.
b. is primarily aimed at developing new or improved products.
c. is also known as pure research.
d. primarily involves compiling and analyzing sales strategies of competitors.
Answer:
_____ consists of all marketing activities that stimulate consumer purchasing, such as
coupons, contests, free samples, and trade shows.
a. Sales promotion
b. Publicity
c. Personal selling
d. Advertising
Answer:
Though field service firms specialize in conducting interviews on subcontracted basis,
they also provide focus group facilities.
a. True
b. False
Answer:
Quality is one of the criteria against which business buyers evaluate products and
suppliers.
a. True
b. False
Answer:
Filmin Inc. has decided to increase the production of its printers. Filmin does not
conduct market research before making its marketing decisions. To ensure profits for
the company, Filmin has instructed its marketing force to aggressively advertise and
promote its printers. The CEO of Filmin believes that the market will absorb more
products if powerful promotion strategies are used. After increasing production of
printers, the company plans to reduce the prices of the printers to encourage customers
to buy them. Filmin appears to have a__________orientation.
a. task
b. production
c. sales
d. customer
Answer:
Social media prohibits consumers’ interaction with other consumers.
a. True
b. False
Answer:
Which of the following strategies is most closely associated with a societal marketing
orientation?
a. Using greenwashing techniques
b. Fostering opportunism
c. Using clean energy sources
d. Increasing overhead production costs
Answer:
Irving Inc., an apparel company, decides to expand operations to several countries
around the world. However, it fails to take into account the various styles of clothing
that are deemed acceptable in these countries. It sells the same clothes that it sells in its
home country to the other countries. As a result, it suffers a major loss. In this scenario,
Irving Inc. failed to be sensitive to the _____ of the countries.
a. economic factors
b. legal environments
c. cultural aspects
d. political forces
Answer:
Cause-related marketing is very popular and is estimated to generate about $7 billion a
year in revenue.
a. True
b. False
Answer:
Which of the following is an advantage of status quo pricing?
a. It leads to optimal pricing of a product.
b. It maintains an organization’s differential advantage.
c. It gives greater importance to the demand and costs of a product.
d. It requires little planning.
Answer:
Both relationship commitment and trust are necessary for a strategic alliance to succeed
in the long run.
a. True
b. False
Answer:
Component lifestyles are:
a. making consumers non-discriminating and less demanding.
b. creating demand for products that meet diverse needs.
c. reducing the complexity of buyer behavior.
d. increasing the demand for low-priced mediocre products.
Answer:
Which of the following is true of raw materials?
a. They often have a large number of relatively small sellers.
b. They almost always require promotion via mass advertising.
c. They include capital goods such as large or expensive machinery.
d. They have relatively short lives and are less expensive compared to supplies.
Answer:
Personal selling, unlike other promotional mix elements, is independent of the Internet.
a. True
b. False
Answer:
Which of the following is true of business marketing?
a. It refers to the sale of goods and services for the purpose of personal consumption.
b. It deals with products that are used to facilitate an organization’s operations.
c. It sells goods and services only to organizations.
d. It depends largely on social media for increased profits.
Answer:
A period during which sales decrease at an increasing rate signals the beginning of the
maturity stage of the product life cycle.
a. True
b. False
Answer:
A distinguishing feature of the product/service differentiation competitive advantage is
_____.
a. using inexpensive raw materials
b. having a strong brand image
c. having low overhead costs
d. creating generic products
Answer:
Roger is always eager to own the latest cell phone model launched in the market. He
makes it a point to buy new cell phones on the first day of their launch. He is also an
active member of various online forums that discuss the latest technical developments.
In this case, Roger is a(n) _____.
a. laggard
b. innovator
c. early majority
d. late majority
Answer:
Business marketing deals with the purchase and sale of goods and services intended for
_____.
a. personal use
b. industrial use
c. gifting
d. individual needs
Answer:
Why do brands with a large market share spend proportionally less on advertising
compared to brands with a small market share?
a. Diminishing returns set in beyond a certain level of spending for advertising.
b. Certain industries have a practice of spending more for sales than for advertising.
c. A minimum level of exposure is required for advertising to have an effect on sales.
d. Advertising will not stimulate economic growth for the industry.
Answer:
In the context of a marketing mix, the product strategy involves:
a. warranty.
b. point of purchase.
c. price of the product.
d. personal selling..
Answer:
Currency markets operate under a system in which the prices of different currencies
move up or down based on the demand for and supply of each currency. This is the
system of _____.
a. countertrade
b. floating exchange rates
c. dumping
d. contract manufacturing
Answer:
How are consumers influenced by reference groups?
a. Many consumers provide reference groups with opinions on new products and
services.
b. Consumers are prohibited from dissociating themselves from reference groups.
c. Consumers use the same criteria as their reference groups to make their own
consumer decisions.
d. Once consumers are associated with a reference group, they do not associate
themselves with a secondary group.
Answer:
Kelly’s Kitchen strives to improve its customer service and make sure its customers
enjoy the food and ambience. It has a team dedicated to keep track of customers’
opinion about Kelly’s kitchen on popular food review sites and other Web sites. It tries
its best to incorporate any changes suggested by its customers on such sites. This
scenario illustrates__________.
Answer:
__________are inventories displayed for sale to customers.
Answer:
The National Pork Board of the United States wants to create more consumer demand
for pork products. The board decides on how to use advertising, public relations,
personal selling, sales promotion, and social media to create a coordinated plan that will
become an integral part of the its marketing functions. Thus, the board is developing
a__________.
Answer:
Felosky Inc., an animal-welfare organization that specializes in cats-care, uses its
Facebook page to find cat veterinarians, cat-food providers, and care takers, who could
collaborate with the team to work on a project. The process used by Felosky Inc. is
known as__________.
Answer:
Monique prefers to do her grocery shopping once a month because her mother also
shops only once a month. One of the reasons Monique is such an efficient shopper is
that, like her mother, Monique believes, “Waste not, want not.” This passing down of
norms and values to Monique is most likely an example of__________.
Answer:
Discuss the product development strategy.
Answer:
__________costs do not change as output is increased or decreased.
Answer:
What are the main differences between major equipment and accessory equipment?
Answer:
__________promotion is designed to stimulate a purchase or an action.
Answer:
When Dernz Inc. introduced its ketchup globally, it first had to deal with the fact that
ketchup is not a household staple outside the United States. The company had to show
foreign users how ketchup can be used. In this case, Dernz had to rely primarily
on__________advertising to reach out to consumers.
Answer:
The technique used to sift through data collected by point-of-purchase scanning
equipment is called__________.
Answer:
Justify the statement, “A brand with a distinct personality is more likely to have a larger
base of loyal customers and market share.”
Answer:
Revel Inc., a cell phone manufacturer, launched its new range of smartphones that could
only be purchased on the company’s official Web site and not at retail outlets. This
limitation may be attributed to the__________element of Revel’s marketing mix.
Answer:
__________risks occur when consumers feel that making the wrong decision might
cause some concern or anxiety.
Answer:
Through the use of computer-generated shipping notices, AllCare Hardware
successfully removes unnecessary costs in its supply chain. According to its vice
president of inventory for the retailer, “Information that had to be gathered through
three or four phone calls before is now just one click away.” This is an example of the
use of__________.
Answer:
__________are costs that are shared in the manufacturing and marketing of several
products in a product line.
Answer:
In the context of global marketing, when a domestic firm buys part of a foreign
company or joins with a foreign company to create a new entity, it is known as
a__________.
Answer:
Red Chilly Productions, a production studio based in the United States, decides to make
a major change in its distribution strategy. It withdraws contracts from its retail partners
and begins to operate its own rental store. This results in its retail partners filing several
lawsuits against the company. This scenario is an example of__________.
Answer: