Adam wants to buy a washing machine and is looking for something that is not too
expensive. When he goes to make the purchase, he finds there are two options that meet
his requirements. One is a Maytag product, while the other is a newly imported South
Korean brand. Adam is not very familiar with the latter and does not hesitate in
choosing Maytag. This example implies that ________.
A) the imported brand will not survive the competition from Maytag
B) Maytag has positive customer-based brand equity
C) the South Korean company has a low advertising budget
D) the imported brand is unreliable
E) the Maytag washing machine has better features than the imported brand
A group of products within a product class that are closely related because they perform
a similar function, are sold to the same customer groups, are marketed through the same
outlets or channels, or fall within given price ranges is known as a ________.
A) product type
B) product class
C) need family
D) product variant
E) product line
Using an established brand to introduce a new product is called brand ________.
A) harmonization
B) valuation
C) extension
D) positioning
E) parity
In an adapted marketing program, the company ________.
A) ensures that uniform practices are adopted across countries
B) focuses more on brand image than consumer preferences
C) ignoresdifferences in the legal environment
D) ensures the lowest cost marketing program is adopted
E) tailors the marketing programs to each target market
Which of the following would NOT be a consumer’s reference price?
A) the advertised price per month
B) the actual future price
C) a price the consumer remembers
D) a posted “regular retail price”
E) the manufacturer’s suggested price
A salesperson performing over-the-counter sales in a medical store can be referred to as
a(n) ________.
A) order taker
B) demand creator
C) solution vendor
D) phisher
E) missionary
TV advertising is considered to be particularly advantageous because ________.
A) messages have extended exposure
B) it has a low absolute cost
C) it is appealing to the senses and generates high attention
D) it reaches highly selective audiences
E) it offers low clutter
James Frank has been put in charge of gathering marketing intelligence, disseminating
it within his organization, and eventually directing action on the information. Mr.
Frank’s task is best described as part of the ________ process.
A) market-sensing
B) new-offering realization
C) customer acquisition
D) customer relationship management
E) fulfillment management
Because shelf space is scarce, many supermarkets now charge a ________ for accepting
a new brand, to cover the cost of listing and stocking it.
A) retainer
B) slotting fee
C) residual fee
D) contingent fee
E) royalty
WD40 offers a Smart Straw version of its popular multipurpose lubricant with a built-in
straw that pops up for use. This is an example of which of the following main strategies
for growing the core of the business?
A) Make the core of the brand as distinctive as possible.
B) Drive distribution through both existing and new channels.
C) Offer the core product in new formats or versions.
D) Increase costs and revenue.
E) Expand to another geographic region.
GameTech International Inc. engages in the design, development, and marketing of
interactive electronic bingo systems primarily in the United States. The company has
plans to enter developing markets such as Brazil and India. TechToys, GameTech’s
major competitor has already started operations in India. GameTech decides to delay its
entry to India and closely observe Techtoy’s operations in India. What is the possible
rationale behind this delaying decision?
When a firm aims to underprice competitors and win market share, it is using a(n)
________ strategy that requires relatively less marketing skills as compared to other
strategies.
A) product differentiation
B) overall cost leadership
C) focus
D) domestic customer relationship
E) price skimming
Everyday low pricing is most suitable if ________.
A) consumers are willing to perform activities such as clip coupons to avail of
discounts
B) consumers tend to associate price with quality
C) customers are insensitive to changes in price
D) the cost of conducting frequent sales and promotions is high
E) consumers have sufficient time to find the best prices
Which of the following types of advertising timing patterns calls for spending all
advertising dollars in a single period?
A) frequency capping
B) flighting
C) concentration
D) pulsing
E) continuity
Philip Morris bought Miller brewing and launched low-calorie beer, at a time when
consumers had the impression that low-calorie beer does not taste as good as normal
beer. What did the company try to build when they conveyed the fact that the beer
contained one third less calories and hence it is less filling?
A) points-of-difference
B) points-of-conflict
C) points-of-parity
D) points-of-presence
E) points-of-inflection
In which of the following stages of personal selling does a salesperson tell the product
story to the buyer?
A) preapproach
B) prospecting and qualifying
C) presentation and demonstration
D) closing
E) overcoming objections
Which of the following elements of the marketing communications mix includes a
variety of programs directed internally to employees of the company or externally to
consumers, other firms, the government, and media to promote or protect a company’s
image or its individual product communications?
A) direct marketing
B) public relations and publicity
C) personal selling
D) advertising
E) sales promotion
Once Starbucks established its presence in thousands of cities internationally, the
company sought to increase the number of purchases by existing customers with a
________ strategy that led to new in-store merchandise, including compilation CDs,
and high-speed wireless access.
A) product-development
B) market-penetration
C) diversification
D) market-development
E) conglomerate
JBJ Sports is a leading sporting goods manufacturer from Atlanta. It has recently
initiated a program in association with the Food4Kids Foundation, which raises funds to
promote nutritional awareness of young children. The company plans to donate $1 for
every item it sells in the North American market. Also, JBJ has roped in professional
sports teams associated with it to wear the Food4Kids logo on their team gear. Which of
the following best describes the motivation for JBJ’s involvement in the program?
A) entertaining key clients or rewarding key employees
B) expressing commitment to the community or on social issues
C) permitting merchandising or promotional opportunities
D) stimulating quicker or greater purchase of particular brands
E) identifying with a particular target market or lifestyle
________ advertising aims to create brand awareness and knowledge of new products
or new features of existing products.
A) Informative
B) Corporate
C) Reinforcement
D) Persuasive
E) Reminder
Most retailers will put low prices on some items in order to increase traffic to the store.
These low-priced products are known as ________.
A) loss leaders
B) price ceilings
C) price skimmers
D) price floors
E) cold calls
What is a global firm?
A) A firm that operates in one country and exports its goods and services to foreign
countries.
B) A firm that operates in more than one country and has a sales and marketing staff in
those countries.
C) A firm that operates in more than one country and captures R&D, production,
logistical, marketing, and financial advantages not available to purely domestic
competitors.
D) A firm that sells its products and services across the world but restricts
manufacturing to the home country.
E) A firm that operates in more than one country but restricts the sale of its products to
the home country.
What are hollow corporations?
A) companies that market their products through franchisees
B) companies that have liabilities exceeding their assets
C) companies that outsource all production to suppliers
D) companies that do not have any physical presence and only operate online
E) companies that are horizontally integrated
In many cases, retailers hold greater ________ than manufacturers, so manufacturers
need to know retail buyers’ acceptance criteria.
A) channel power
B) conditions of sale
C) territorial rights
D) motivation
E) channel design
What is the second phase of the value creation and delivery sequence?
A) choosing the value
B) providing the value
C) communicating the value
D) calculating the value
E) calibrating the value
In which of the following cases is building a database worthwhile for the company?
A) Clare’s creates personalized sculptures for special occasions.
B) Sales of Clarity soap have fallen over the past few months in all regions.
C) 2Wheels sells its most profitable products to repeat customers.
D) Uncle Jim’s sells its range of snacks in stores throughout the country.
E) Ready-to-wear clothes brand Zeep targets the teen and tween market throughout the
United States.
A marketer is interested in segmenting a business market on ________ if the marketer’s
variables are loyalty and attitudes toward risk.
A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables
Which of the following is the best method of recovering customer goodwill?
A) sending service people to conduct door-to-door surveys
B) contacting the complaining customer as quickly as possible
C) identifying prospective customers from the customer database
D) customizing products according to individual customer need
E) defining and measuring the customer retention rate
Which of the following is TRUE of brokers?
A) Brokers represent buyers or sellers on a permanent basis.
B) Most brokers are hired by sellers and work for a salary.
C) Brokers bring buyers and sellers together and assist in negotiation.
D) Selling brokers have contractual authority to sell a manufacturer’s entire output.
E) Brokers assume title and risk from the time an order is accepted to its delivery.
The first step in the social marketing planning process is ________.
A) determining the focus of the program
B) selecting the target audience
C) setting objectives and goals
D) designing the market offering
E) finding a source of funding
Why would a retailer measure direct product profitability (DPP)?
A) because DPP is highly correlated with the gross margin on a product
B) because handling expenses are negligible compared with gross margin
C) because handling costs can make products less profitable
D) because gross margin on a product is too difficult to measure accurately
E) because DPP removes the impact of paperwork expenses
Which of the following elements of sociocultural environment can be associated with
the growing demand for ‘social surrogates” like social networking sites, television, etc.?
A) views of ourselves
B) views of organizations
C) views of others
D) views of nature
E) views of the universe