Commercial sources of information typically legitimize and evaluate products for
buyers.
The direct mail medium has very low cost per exposure.
The introduction of new technologies is equally beneficial to all industries.
Professional athletes such as Peyton Manning and Maria Sharapova are featured in
advertisements for Gatorade. According to this information, Gatorade is utilizing
branded entertainment.
In customer value-based pricing, price is considered along with all other marketing mix
variables before the marketing program is set.
Data ages quickly.
The number of products supplied indicates the length of a channel.
Consumers who have no past experience with a product are more likely to judge it by
its price.
The more elastic the demand, the more it pays for the seller to raise the price.
The exchange of U.S. wheat for Russian vodka would be an example of barter.
________ is the process by which firms interact one-to-one with masses of customers to
design products and services tailor-made to individual needs.
A) Product diversification
B) Micromarketing
C) Mass customization
D) Differentiated marketing
E) Local marketing
Failure to enter the current price into a retailer’s system may result in charges of
________.
A) predatory pricing
B) scanner fraud
C) retail maintenance pricing
D) discriminatory pricing
E) price fixing
Which of the following product mix pricing strategies involves pricing multiple
products to be sold together?
A) product line pricing
B) product bundle pricing
C) optional product pricing
D) by-product pricing
E) captive product pricing
Which of the following generations is the most educated to date?
A) Lost Generation
B) Baby boomers
C) Millennials
D) Generation X
E) Silent Generation
Amazon.com and GEICO approach customers via Web sites or mobile apps. This is an
example of ________ marketing.
A) mass
B) niche
C) individual
D) multi-level
E) direct
What is most likely a strategic benefit of the existence of competitors?
A) Competitors seldom lead to product differentiation.
B) Competitors help legitimize new technologies.
C) Competitors exclusively serve more-attractive segments.
D) Competitors fracture the target market.
E) Competitors decrease the total demand.
A(n) ________ serves to limit the amount of foreign exchange and the exchange rate
against other currencies.
A) exchange premium
B) free trade zone
C) quota
D) exchange control
E) tariff trade barrier
Recently, a class-action lawsuit was brought against BigBurger, a fast food chain,
charging that its food has contributed to the nationwide obesity epidemic. The suit was
eventually dismissed, but many critics continue to point out the health dangers of
typical “fast food” menu items. These critics are most likely concerned that the fast food
industry has used ________.
A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products
A ________ is a name, term, sign, symbol, design, or a combination of these, that
identifies the maker or seller of a product or service.
A) feature
B) brand
C) line extension
D) package
E) value chain
Which of the following is one of the social costs associated with cars?
A) traffic congestion
B) water pollution
C) new highways
D) new automobile models
E) cleaner roads
According to the text, what location does Coca-Cola consider a “promising long-term
growth opportunity”?
A) Russia
B) Brazil
C) China
D) Africa
E) India
________ positioning involves meeting consumers’ lower performance or quality
requirements at a much lower price.
A) More for less
B) Less for much less
C) Same for less
D) More for more
E) More for the same
Following the change in consumer values and consumption patterns after the Great
Recession, marketers have changed their marketing strategies to emphasize the
________ of their products.
A) image
B) value
C) durability
D) safety
E) uniqueness
________ are like coupons except that the price reduction occurs after the purchase
rather than at the retail outlet.
A) Rebates
B) Promotional products
C) Premiums
D) Samples
E) Price packs
Fixed costs ________.
A) are costs that do not vary with production or sales level
B) vary directly with the level of production
C) decrease with accumulated production experience
D) are the sum of the overhead and variable costs for any given level of production
E) represent the annual costs of inputs incurred by a company
Many retailers are now experimenting with limited-time shops that allow them to
promote their brands to seasonal shoppers and create buzz in busy areas. Which of the
following terms best represents such shops?
A) power centers
B) strip malls
C) pop-up stores
D) category killers
E) lifestyle centers
Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a
small number of representative cities. The company plans to use the results to forecast
national sales and profits. Which of the following did the firm use?
A) controlled test markets
B) simulated test markets
C) standard test markets
D) ambush marketing
E) affinity marketing
Herbie Inc., a firm manufacturing sandwich makers, has fixed costs of $250,000,
variable costs of $20 per unit of output, and expected unit sales of 50,000 units. What is
the unit cost of a sandwich maker manufactured by Herbie?
A) $15
B) $25
C) $30
D) $50
E) $75
Which of the following is a potential downside to using patriotic themes in marketing
programs?
A) Consumers rarely respond to patriotic marketing messages in a favorable manner.
B) A consumer’s societal orientation has no visible impact on product consumption.
C) Patriotism could be viewed as an attempt to cash in on the nation’s emotions.
D) Patriotic Americans may have less disposable income than reformers.
E) Mass marketing has limited appeal among patriotic Millennials.
Refer to the scenario below to answer the following question.
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many electronic toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory
nodes along the edges. After being charged in the sunlight, the vacuum could run for 7
hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into
table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the
objects in various directions. This is the same type of technology used in the
manufacture of children’s racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely be
reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a
multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and
several other retail stores in Florida. “It’s such a novel idea,” Evelyn added. “People will
notice it, even if they don’t buy it right away.”
Which of the following stages of the new product development was Evelyn involved in
when she set up a demonstration booth to learn about consumers’ feelings toward her
vacuum cleaner?
A) concept testing
B) marketing strategy development
C) idea screening
D) commercializing
E) crowdsourcing
Which of the following statements is true of direct marketing?
A) Direct marketing is also referred to as referral marketing.
B) Salespersons are compensated for other salespeople they recruit.
C) Direct marketing offers sellers a low-cost alternative for reaching their markets.
D) Direct marketing involves two or more intermediaries.
E) In direct marketing, consumers earn a commission every time they buy a product.
The managers of Arrow, an American retail chain, are currently reviewing new
demographic markets to sell the firm’s current products. This is an example of
________.
A) market penetration
B) product development
C) mass marketing
D) market development
E) product adaptation
How do interpersonal factors influence the business buying process?
Explain the goal of viral marketing.
Marketers can obtain information from internal data and from competitive marketing
intelligence. Compare and contrast the two sources of information.
Explain the significance of a downward-sloping experience curve.
Give two examples of product bundle pricing.
Compare and contrast the four types of buying decision behavior exhibited by
consumers.
Why might salespeople use high-pressure selling tactics that do not lead to long-term
relationships with customers?
What is a pure monopoly?