When Procter & Gamble Co. acquired the Old Spice brand, it decided to reposition the
brand by using a different advertising message to see whether sales would then
increase. The new advertising message is the __________ in this marketing experiment.
a. dependent variable
b. extraneous variable
c. constraint
d. independent variable
e. error variable
Answer:
Hart Schaffner & Marx is a producer of fine men’s suits and sports coats that operates
100 menswear stores. Hart Schaffner & Marx uses __________.
a. dual distribution
b. backward integration
c. forward integration
d. horizontal integration
e. strategic channel alliances
Answer:
Brand guru Martin Lindstrom believes that __________of consumers’ thoughts,
feelings, or preferences toward products, brands, and advertisements resides deep
within the subconscious part of the brain and can”t be understood using traditional
techniques.
a. 33 percent
b. 40 percent
c. 50 percent
d. 75 percent
e. 85 percent
Answer:
Private enterprise dominates __________ countries, although they have substantial
public sectors as well.
a. developing
b. evolving
c. developed
d. emerging
e. third-world
Answer:
Today’s visionary organization uses three key elements: (1) specify its foundation; (2)
__________; and (3) formulate strategies.
a. set a direction
b. establish detailed marketing tactics
c. assign job responsibilities
d. set financial goals
e. establish an organizational chart
Answer:
A recently graduated business student decided to open a small Internet caf serving a
variety of unusual nonalcoholic beverages from around the world. He carefully used all
the pricing formulas he learned in school and set a goal to break even the first six
months and make a moderate profit for the next six months, at which time he would
review his pricing strategies. Within a week after opening, every seat was filled and he
had to replenish his beverage orders several times. At his six-month review, he was
devastated to find that despite huge sales, he had actually lost money. He realized it
wasn”t his “math” that was wrong; he forgot to include monthly expenses such as toilet
paper, paper towels, hand soap, and trash removal fees in his calculations. These costs
should have appeared as __________ in his break-even analysis.
a. fixed costs
b. marginal costs
c. variable costs
d. overhead costs
e. sunk costs
Answer:
Because of the intangible nature of services, consumers often perceive price as a
possible indicator of __________ of the service.
a. the profit or ROI
b. the customer value
c. the quality
d. the target market
e. the cost
Answer:
Logistics refers to
a. an inventory management system where the supplier determines the product amount
and assortment a retailer needs and automatically delivers the appropriate items.
b. mathematical formulas and calculations used in determining product volume and
demand in order to generate the greatest revenue at the lowest cost.
c. the sequence of firms that performs activities required to create and deliver a product
or service to ultimate consumers or industrial users.
d. activities that focus on getting the right amount of the right products to the right place
at the right time at the lowest possible cost.
e. a specialized intermediary in the distribution chain responsible for the coordination of
all production schedules.
Answer:
A pricing strategy where the buyer is allowed to deduct freight expenses from the list
price of the goods so the seller pays the transportation costs is referred to as
a. FOB factory pricing.
b. FOB absorption pricing.
c. FOB origin pricing.
d. basing-point pricing.
e. FOB with freight-allowed pricing.
Answer:
Which of the following statements about the World Trade Organization (WTO) is most
accurate?
a. The World Trade organization is a temporary institution.
b. The 153 member countries of the WTO account for more than 90 percent of world
trade.
c. The WTO sets rules governing trade between its members and the remainder of the
world.
d. The WTO uses panels of trade experts who can issue non-binding recommendations.
e. The WTO was formed by the United Nations.
Answer:
Within the context of social media, an “evangelist” is an online user who
a. is “delighted” about the brand advertised and sends messages to his or her online
friends and then back to the advertiser about the joys of using the brand.
b. tries to promote an anti-consumerist agenda to other online users, hindering the
effectiveness of online advertisements.
c. is paid by the advertisers to promote the brand’s positive qualities by sending
messages to his or her online friends.
d. is indifferent to advertisements on social media networks.
e. develops his or her own Facebook, Twitter, and/or YouTube following, and therefore,
should be contacted by advertisers about his or her website.
Answer:
Concern for health and fitness is one reason that 51 million people in the United States
report that they are trying to control their weight. This concern is an example of
a. changing values.
b. changing population composition.
c. changing demographics.
d. an increase in value consciousness.
e. changing ethnic composition.
Answer:
After qualifying by having seen at least six movies in the last year, members of tracking
studies are asked three key questions, one of which is __________.
a. How much would you be willing to pay for a ticket?
b. Will you be seeing the movie with someone else? If so, with whom?
c. In your own words, what is the premise of the movie?
d. Will you see the film this weekend?
e. If you like the movie, what is the probability that you will purchase it when it is
released on a DVD?
Answer:
Which statement regarding responsive supply chains is most accurate?
a. Responsive supply chains use slower modes of transportation but faster order
processing.
b. Responsive supply chains always use the least expensive mode of transportation
possible.
c. Responsive supply chains rely on large inventory warehouses.
d. Responsive supply chains achieve economies of scale by having all inventory stored
and sorted at a central location.
e. Responsive supply chains rely heavily on information technology.
Answer:
The Make a Wish Foundation brand name is especially effective because it
__________.
a. is easy to spell and pronounce
b. is not easily imitated
c. suggests the service’s benefits
d. demands a hint of moral obligation
e. is devoid of emotion
Answer:
Allocation of funds to promotion only after all other budget items are covered is
referred to as
a. percentage of sales budgeting.
b. all-you-can-afford budgeting.
c. competitive parity budgeting.
d. objective and task budgeting.
e. linear forecast budgeting.
Answer:
Consider the flexible pricing chart above, which shows the results of a National Bureau
of Economic Research study of 750,000 car purchases. The data indicate that some
groups of car buyers, on average, paid roughly $105, $423, and $483 more,
respectively, for a new car in the $21,000 range than the typical purchaser. Who are the
car buyers in “C?”
a. women
b. the elderly
c. Hispanics
d. African Americans
e. Asian Anericans
Answer:
IBM has set about to build a single __________ that would handle raw material
procurement, manufacturing, logistics, customer support, order entry, and customer
fulfillment across all of IBMsomething that had never been done before.
a. integrated supply chain
b. extranet computer system
c. customer service department
d. intranet supply network system
e. global procurement network
Answer:
By selling franchises, an organization __________ the cost of expansion and
__________ its control compared to owning its own retail outlets.
a. increases; increases
b. increases; reduces
c. reduces; increases
d. increases; retains about the same
e. reduces; reduces
Answer:
Research indicates that 25% of U.S. salespeople engaged in __________ selling
consider it unethical to explicitly ask customers about competitors’ strategies such as
pricing practices, product development efforts, and trade and promotion programs.
a. order-taking
b. business-to-business
c. business-to-consumer
d. missionary
e. partnership
Answer:
Price elasticity of demand is determined by a number of factors such as whether the
item is a luxury product or service, the availability of substitutes, the cash outlay of
purchase relative to a person’s disposable income, and
a. the stage of the product or service in its product life cycle.
b. the degree of carrying costs for the manufacturer or distributor.
c. the financial resources of the organization itself.
d. the ability of the organization to meet sudden increases in demand.
e. the necessity of the product or service.
Answer:
An Internet-enabled digital environment characterized by face-to-screen exchange
relationships and electronic images and offerings is referred to as a(n) __________.
a. extranet
b. intranet
c. marketplace
d. marketspace
e. web portal
Answer:
The blending of different communication and delivery channels that are mutually
reinforcing in attracting, retaining, and building relationships with consumers who shop
and buy in the traditional marketplace and online is referred to as __________.
a. multichannel marketing
b. strategic channel alliances
c. dual-track reselling
d. dual distribution
e. retail segmentation
Answer:
Supplies are support products that include items such as
a. stationery, paper clips, and brooms.
b tools and office equipment.
c buildings and fixed equipment.
d. raw materials and component parts.
e. maintenance, repair, and legal services.
Answer:
Which of the following marketing activities targets baby boomers?
a. Some educational institutions have developed degree programs that emphasize
sustainable practices.
b. Some hoteliers have remodeled their rooms to make them more casual and
“tech-friendly.”
c. Some consumer packaged goods firms have reformulated their products to address
concerns about salt, sugar, and saturated fat.
d. Some travel agencies have developed distinctive, memorable, and personal vacations
(cruises, sightseeing trips, etc.)
e. Some greeting card firms have created birthday cards with sentiments designed for
stepparents and stepchildren.
Answer:
The swoosh that appears on every Nike product is an example of a __________.
a. copyright
b. trade name
c. trade mark
d. brand name
e. label
Answer:
A common publicity tool is the __________, where representatives of the media are all
invited to an informational meeting and advance materials regarding the content are
sent out in advance.
a. infomercial
b. news release
c. news conference
d. news flash
e. news huddle
Answer:
In 1988, the Trademark Law Revision Act resulted in a major change to the Lanham
Act. The change allows
a. a company to secure rights to a name before its actual use by declaring an intent to
use the name.
b. products to use generic terms as trademarks.
c. inventors to apply for use of Internet domain names.
d. a company to declare trademark ownership in foreign markets.
e. products to use more than one trademark.
Answer:
An external evaluation with consumers that consists of preliminary testing of a
new-product idea rather than the actual product is referred to as
a. new-product strategy development.
b. idea generation.
c. alternative evaluation.
d. market testing.
e. a concept test.
Answer:
A global brand refers to
a. two or more domestic products that coincidentally share the same brand name but
represent two completely unrelated products or manufacturers.
b. two or more international products that coincidentally share the same brand name but
represent two completely unrelated products or manufacturers.
c. a brand marketed under the same name in multiple countries with similar and
centrally coordinated marketing programs.
d. a brand that is essentially the same but that has had minor adaptations made to meet
the more specific needs of different nations.
e. a brand marketed under different names in multiple countries with similar and
centrally coordinated marketing programs.
Answer: