Which of the following pricing strategies most likely results in a retailer losing money
on the product?
a. Price leader pricing
b. Psychological pricing
c. Penetration pricing
d. Special-event pricing
e. Ethical pricing
Marketing research is a systematic and orderly gathering of information supplied
through the routine reporting system within the organization.
a. True
b. False
Customers are interested in a product’s price because they are concerned about the value
obtained in an exchange.
a. True
b. False
Firms that truly adopt the marketing concept develop a distinct organizational culture
based on a shared set of beliefs that makes customers’ needs the pivotal point of the
firm’s decisions about strategy and operations.
a. True
b. False
The Decca Electric Corporation produces light bulbs that are used in refrigerator
manufacturing. Currently, only three other companies produce bulbs used in the
production of refrigerators, with Decca having the greatest market share. In this case,
Decca Electric Corporation would be considered:
a. an oligopoly. b. a monopoly.
c. involved in monopolistic competition. d. involved in perfect competition.
e. involved in a perfect oligopoly.
Cooperative advertising efforts between manufacturers and retailers demonstrate the
promotional objective of:
a. stimulating demand.
b. reducing sales fluctuations.
c. combating competitive promotional efforts.
d. facilitating reseller support.
e. retaining loyal customers.
The maximum percentage of market potential that an individual firm can expect to
obtain for a specific product is the _____.
a. sales forecast
b. market potential
c. company sales potential
d. company sales objective
e. market share goal
Michael is planning a promotional program for AirFam. AirFam is a supplier of new
energy-saving engines used to produce air conditioners. His company needs to promote
these engines to manufacturers of air conditioners, so he is most likely to
use__________, because it provides immediate feedback.
a. sales promotion
b. advertising
c. word-of-mouth
d. personal selling
e. public relations
Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to
young singles. Which of the targeting strategies is being implemented by Volkswagen?
a. Concentrated targeting strategy
b. Strategic targeting strategy
c. Differentiated targeting strategy
d. Undifferentiated targeting strategy
e. Multi-segmented targeting strategy
The four major stages of a product life cycle include .
a. prosperity, recession, depression, and recovery
b. specialty, convenience, shopping, and unsought goods
c. decline, stabilization, exposure, and growth
d. introduction, growth, maturity, and decline
e. awareness, interest, trial, and adoption
The Gap Inc. has recently produced a new line of athletic wear that closely competes
with a designer label in its quality, utility, and appearance. However, it is about half the
cost of the designer brand. Product managers for The Gap line plan to use price
sensitivity, brand loyalty, and end use as variables to segment their target market. These
are all variables for market segmentation.
a. psychographic
b. usage
c. demographic
d. lifecycle
e. behavioristic
A company sometimes defines a total market as its target market.
a. True
b. False
The effectiveness of an advertising campaign can be measured only after the
completion of the campaign, when results are tabulated.
a. True
b. False
Facilities, factories, and production lines with very large equipment are all classified
as .
a. accessory equipment
b. permanents
c. installations
d. component parts
e. MRO facilities
Jack gets a shopping list from his wife. On the list are a potted plant, aspirin, fresh
salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time,
Jack should go to a__________.
a. discount store
b. category killer
c. specialty store
d. specialty retailer
e. supermarket
McDonald’s supports and funds Ronald McDonald houses for the families of
terminally-ill children to stay in and to be near their loved ones. McDonald’s action
demonstrates the fulfillment of responsibility.
a. legal
b. stakeholder
c. philanthropic
d. economic
e. ethical
products have a lower inventory turnover and need fewer distribution outlets than
convenience goods.
a. Seasonal
b. Unsought
c. Specialty
d. Durable
e. Shopping