Recent research indicates that the timing of __________ might affect future sales
because frequent promotions increase consumers’ ability to remember regular prices.
A. promotional markups
B. original markups
C. future markups
D. maintained markups
E. markdowns
Answer:
Thirteen- to nineteen-year-olds in Europe, North America, South America, and the
industrialized nations of Asia
A. are more similar than different regarding their purchase behaviors.
B. are becoming more similar, but still differ significantly in terms of fashion and
design.
C. are rebelling against the Americanization of fashion and culture.
D. have very different tastes in fashions and music.
E. are more influenced by Asian culture than European culture.
Answer:
A key role of the marketing department is to “look outward.” This is accomplished by
A. allocating financial resources across strategic business units.
B. communicating the vision of the marketing department forcefully enough to be
incorporated into the overall mission of the company.
C. forming cross-functional teams to help solve the organization’s marketing problems.
D. implementing new accounting methods passed by Congress.
E. listening to customers, developing and producing offerings, and implementing
marketing program activities.
Answer:
Which of the following statements regarding online consumers is most accurate?
A. With the exception of the setting used to make the exchange (online versus retail
store), the profile of an online customer is almost identical to the traditional shopper.
B. Although online shopping and buying is popular, a small percentage of online
consumers still account for a disproportionate share of online retail sales in the United
States.
C. The group most likely to use the Internet to make purchases is comprised of educated
males between the ages of 25 and 39.
D. Although growing in total sales revenues, the percentage of online sales is beginning
to decline due to the downturn in the economy and the passage of a national Internet
sales tax.
E. Many people are “put off” by the difficulty in navigating so many new websites.
Answer:
People posing as customers, who are paid to check on the quality of a company’s
products and services and write a detailed report on the experience, are referred to as
__________.
A. mystery shoppers
B. customer ombudsmen
C. secret customers
D. Facebook “likers”
E. repeat customers
Answer:
Which of the following statements regarding Ben & Jerry’s is most accurate?
A. Ben & Jerry’s is owned by Unilever, the market leader in the global ice cream
industry.
B. Ben & Jerry’s is a privately owned ice cream producer.
C. Ben & Jerry’s prides itself on offering more ice cream flavors than its competitors.
D. Ben and Jerry are not real people; the names were a clever reference to Tom and
Jerry cartoon characters in order to capitalize on childhood nostalgia.
E. Ben & Jerry’s has only been in business for twenty years and is already the industry
leader in premium ice cream.
Answer:
Lindsey Smith’s task in Molecular Imaging Products at GE Healthcare is to
A. simplify sales presentations for technical products.
B. increase the importance of the advertising element of the company’s promotion mix.
C. develop a team of professionals in selling to and servicing key customers.
D. create value in customer relationships by emphasizing the company’s product
innovations, solutions, and service.
E. establish brand recognition for Molecular Imaging Products as distinct from GE
Healthcare.
Answer:
The four steps in the sequential process of building the brand equity pyramid include:
(1) developing positive brand awareness; (2) establishing a brand’s meaning in the
minds of consumers; (3) eliciting the proper consumer responses to a brand’s identity
and meaning; and (4) __________.
A. easing consumers’ decision making
B. forming a brand personality
C. creating a consumer-brand connection
D. rewarding loyal customer behavior
E. developing brand licensing criteria
Answer:
The sale of two or more separate products in one package is referred to as
A. a BOGO deal.
B. product modification.
C. product repositioning.
D. product bundling.
E. product differentiation.
Answer:
There are three general forms of retail ownership: contractual system, corporate chain,
and __________.
A. dual ownership
B. industry consortium
C. retailing cooperative
D. independent retailer
E. multi-national cartel
Answer:
Casey’s girlfriend will celebrate her birthday next week, so he needs to buy her a gift.
He remembers the brand of watch that she wears and considers if she would like a new
one by the same maker. This is an example of what part of the consumer purchase
decision process?
A. recollection search
B. external search
C. evaluative criteria
D. antecedent states
E. internal search
Answer:
Coke-Pepsi Photo
Consider the Coke-Pepsi photo above. Thirty three percent of Pepsi’s marketing and
advertising executives say they would decline an offer to buy one of Coke’s marketing
plans and samples. Of these, most said that they
A. thought they might go to work for Coke one day and didn’t want to spoil their
employment chances.
B. would prefer competing ethically so they could sleep at night.
C. were afraid the media would find out.
D. knew they would get fired.
E. didn’t want to disappoint their co-workers.
Answer:
Trend hunting is the practice of identifying “emerging shifts in social behavior,” which
are driven by changes in pop culture that can lead to new products. Trend Hunter has
identified over 200,000 __________ through its global network of 118,000 members.
A. survey errors
B. micro-trends
C. interviewing trends
D. environmental forces
E. psychographic trends
Answer:
Figure 2-5
Consider Figure 2-5 above. A family owns a gelato business in a small town square next
to a park, a favorite place for parents and children to stop on their way home from work
or school. However, the business owner is barely making ends meet. Customers
frequently compliment his unusual gelato flavor selections. He decides to package his
special flavorings into small packets that can be used at home for drinks. Sales of the
packets soar and profits rise. This is an example of a __________ strategy that would
be found in quadrant __________.
A. market penetration; A
B. product development; B
C. market development; C
D. diversification; D
E. product-market addition; D
Answer:
When a firm sells a product in a foreign country below its domestic price or below its
actual cost, the practice is referred to as
A. loss-leader pricing.
B. surplus marketing.
C. dumping.
D. second-market pricing.
E. entrepreneurial pricing.
Answer:
Jane Westerlund owns a small retail picture frame store in a local strip mall. She just
bought 10 picture frames from a promising woodworker for $36 each. Based on market
conditions, she will sell these for $100 each. What is her markup in dollar terms?
A. $36
B. $64
C. $100
D. $360
E. $1,000
Answer:
Inventory of services differs from that of products in what way?
A. Time is less important to customers of services than customers of products.
B. Only service inventory can be reduced through more efficient movement of products.
C. There are larger costs associated with the handling of service inventory.
D. Unlike goods providers, the service provider is often unavailable when there is a
demand for the service.
E. Service inventory costs are related to idle production capacity rather than storage or
handling.
Answer:
Figure 8-6
Figure 8-6 above shows the market-product grid for a Wendy’s restaurant next to a large
urban university campus. Assume a large market (shown by a 3) is three times the size
of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size
of a small market. The largest potential market segment consists of
A. students that live in a dormitory.
B. students that live in an apartment.
C. students that are day commuters.
D. students that are night commuters.
E. faculty or staff members.
Answer:
Figure 6-4
Global companies have five strategies for matching products and their promotion
efforts to global markets. According to Figure 6-4 above, D refers to which type of
strategy?
A. product extension strategy
B. product adaptation strategy
C. dual adaptation strategy
D. product invention strategy
E. communication adaptation strategy
Answer:
There are four popular types of franchising: (1) manufacturer-sponsored retail franchise
systems; (2) manufacturer-sponsored wholesale franchise systems; (3)
service-sponsored franchise systems; and (4) __________.
A. service-sponsored retail franchise systems
B. wholesaler-sponsored franchise systems
C. horizontal-marketing franchise systems
D. contractual-sponsored franchise systems
E. customer-generated franchise systems
Answer:
Figure 13-4 above shows the wheel of retailing, which indicates that retail outlets
typically go through changes with the passage of time, starting at Box A. What
characteristics in the wheel of retailing does B represent?
A. low prices, low margins, low status.
B. higher prices, higher margins, and higher status.
C. low prices, high margins, and high status.
D. stable prices, low margins, and stable status.
E. moderate prices, high margins, and high status.
Answer:
The pricing approach that: (1) estimates the price that ultimate consumers would be
willing to pay for a product; (2) works backward through markups taken by retailers
and wholesalers to determine what price to charge wholesalers; and (3) results in the
manufacturer deliberately adjusting the composition and features of the product to
achieve the price to consumers is referred to as __________.
A. cost-benefit pricing
B. cost-plus percentage-of-cost pricing
C. target pricing
D. cost-plus fixed-fee pricing
E. product feature pricing
Answer:
One of the disadvantages associated with television as an advertising medium is that it
A. requires a long exposure time.
B. cannot target specific audiences.
C. must use print for effect.
D. is difficult to use it to convey complex messages.
E. has an unlimited amount of advertising time available.
Answer:
The process of taking wool off sheep and using it to make soft sweaters shows how
manufacturing can create __________ utility.
A. time
B. form
C. place
D. possession
E. market
Answer:
Which of the following statements regarding salesforce compensation plans is most
accurate?
A. The most preferred compensation plan among sales people is the straight
commission plan.
B. Nonmonetary rewards are not very effective as salesforce motivators.
C. New recruits are often more productive than seasoned professionals.
D. Ineffective practices often lead to costly salesforce turnovers.
E. The expense of training a new salesperson, including the cost of lost sales, is still
lower than having to use a salary plus commission plan.
Answer:
A(n) __________ question is the simplest form of a fixed alternative question that
allows only a yes or no response.
A. dichotomous
B. open-ended
C. closed-end
D. attitudinal
E. semantic differential
Answer:
The marketing managers at Omaha Steaks used airlines’ databases to mail a special
offer to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who
responded to the offer, the company’s salespeople followed up by telephoning
customers to ask for new orders. This is an example of which types of nonstore
retailing?
A. direct selling and telemarketing
B. direct-mail and telemarketing
C. telemarketing and online retailing
D. online retailing and direct-mail
E. direct-mail and direct selling
Answer:
When a U.S. airplane manufacturer sells its airplanes to business executives in
Germany without using intermediaries, it is referred to as
A. direct exporting.
B. indirect exporting.
C. licensing.
D. foreign manufacturing.
E. foreign assembly.
Answer:
The process of conveying a message to others that requires six elements – a source, a
message, a channel of communication, a receiver, and the processes of encoding and
decoding – is referred to as __________.
A. exchange
B. dialogue
C. communication
D. advertising
E. feedback
Answer:
Amanda plans to go for a run after her classes are over. As she is lacing up her running
shoes, she notices that one of the shoe’s seams is unraveling and she thinks it is about
time for a new pair. In which stage of the consumer purchase decision process is
Amanda at that moment?
A. information search
B. problem recognition
C. purchase behavior
D. alternative evaluation
E. prepurchase cognition
Answer:
Online content that shows a significant degree of creative effort, and thus is more than
simply posting a newspaper or magazine article on a personal blog, is a criterion of
A. online advertisements.
B. blogs.
C. user generated content (UGC).
D. wikis.
E. YouTube.
Answer:
The owners of a small bookstore want to run an ad in the local newspaper of the small
town where the business is located. Their objective is to create awareness for the
bookstore among the town’s consumers. Which of the following measures should be
used to assess the number of different people or households exposed to the
advertisement?
A. reach
B. rating
C. GRPs
D. CPM
E. frequency
Answer:
At which level of service would the customer perform the least number of functions?
A. exclusive-service
B. minimal-service
C. self-service
D. limited-service
E. full-service
Answer:
What are the two most common constraints in marketing problem solving?
A. limitations of personnel and office space
B. limitations of the strategic thinking and creativity of the firm’s advertising agency
C. limitations on the time and money available
D. government regulations and rights to privacy
E. limitations on access to upper and middle management
Answer:
When a firm produces only a single product or service and attempts to sell it to two or
more market segments, it avoids __________.
A. the extra cost of developing and producing additional versions of the product
B. creating a customer service gap
C. indirect distribution and logistics problems
D. restructuring the firm’s strategic planning
E. amortization costs of product enhancements
Answer: