The classifications of innovators, early adopters, early majority, late majority, and
laggards are all based upon __________
a. how frequently a consumer uses a product
b. the number and strength of competitors
c. when consumers begin buying a new product
d. the time it takes to educate a consumer in the use of a new technology
e. how quickly consumers respond to an advertising message or campaign
Answer:
Google’s mission is
a. to receive 20 billion inquiries each day.
b. to be the first company to generate $100 billion in revenues every year.
c. to be the most socially responsible company on earth.
d. to obtain corporate sustainability by the year 2015.
e. to organize the world’s information and make it universally accessible and useful.
Answer:
In the early 1980s, typical round-trip coach airfares from the East Coast to London were
more than $500. Then Freddie Laker introduced the People’s Express, a competing
service into Newark at $350. Major airlines matched his priceand continued to do so
until they drove People’s Express out of business. Then prices shot back up to over
$500. A lawsuit filed under the Sherman Act resulted in the judgment that the major
airlines had explicitly tried to destroy a competitor. The experience of People’s Express
is an example of __________ on the part of the major airlines
a. price fixing.
b. price discrimination.
c. deceptive pricing.
d. predatory pricing.
e. pricing constraints.
Answer:
As a sales manager, you note that one of your salespeople has exceeded his sales target
but is well below his profit goal. The best explanation for this performance is that
__________.
a. the salesperson has not been working hard enough
b. the salesperson is selling too many high margin products
c. the salesperson’s sales quota is too low
d. the salesperson is selling too many low margin products
e. the salesperson’s sales quota is too high
Answer:
Observing people and asking them questions are the two principal ways to obtain
a. external secondary data.
b. internal secondary data.
c. primary data.
d. experimental independent variables.
e. nonprobability data.
Answer:
TheKnot.com, a website for locating everything needed for a wedding., contains several
links to other websites that an engaged couple might need, including a travel agency, a
linen store, a wedding gown retailer, and several other links. TheKnot.com is an
example of the __________ website design element.
a. convenience
b. connection
c. control
d. community
e. communication
Answer:
Gatorade Thirst Quencher displays the letter G front and center along with the brand’s
iconic bolt. “For Gatorade, G represents the heart, hustle, and soul of athleticism and
will become a badge of pride for anyone who sweats, no matter where they”re active.”
This is an example of _____ benefits.
a. functional
b. communications
c. perceptual
d. physical
e. tangible
Answer:
All of the following statements about price are true EXCEPT:
a. Research on 1,000 large U.S. companies shows that a 1 percent price increase
translates to a 12 percent increase in profitability, other factors remaining the same.
b. The price for a product or service must earn a profit for the company.
c. For most products and services, their prices are always the same.
d. The price must be “right”in the sense that customers must be willing to pay it.
e. The price must generate enough sales dollars to pay for the cost of developing,
producing, and marketing the product.
Answer:
Internet-enabled software allows American Airlines to change their prices in real time
in response to supply and demand conditions. This is an example of the fifth reason
why consumers buy and shop online.
a. convenience
b. choice
c. cost
d. customization
e. control
Answer:
A single social media site like Facebook or YouTube is referred to as a(n)
a. social network.
b. gaming website.
c. electronic media.
d. social media.
e. feedback media.
Answer:
Figure 1.
According to the information in Figure 1. above, which smartphone seems to have the
highest rating (excluding price considerations)?
a. Apple
b. HTC
c. Samsung
d. LG
e. Motorola
Answer:
Which of the following statements about social class is most accurate?
a. Social class is purely a U.S. phenomenon.
b. Persons within the same social class do not exhibit common attitudes, lifestyles, and
buying behaviors.
c. Companies cannot use social class as a basis for describing a target market.
d. A person’s lifestyle, income level, and occupation determine his or her social class.
e. Social class is relatively permanent and homogeneous.
Answer:
Located predominately in Europe, these large stores (90,000 – 300,000 square feet) offer
20,000-80,000 different food, grocery, and general merchandise products, have annual
revenue of over $100,000,000 per store, and are referred to as
a. discount wholesalers.
b. discount retailers.
c. supermarkets.
d. hypermarkets.
e. retail cooperatives.
Answer:
Marginal cost is the change in total cost that results from
a. reducing the total number of units produced.
b. increasing the number of units produced by 1 percent.
c. increasing the number of products in a product line.
d. producing and marketing one additional unit of a product.
e. the percentage change that results from changing a product feature or service benefit
to reduce costs.
Answer:
Which of the following statements regarding pricing objectives is most accurate?
a. Pricing objectives should never change.
b. Pricing objectives may change depending on the financial position of the company.
c. Pricing objectives may change depending upon the relative market share of
competitors.
d. Pricing objectives are established exclusively by the marketing department.
e. Pricing objectives are extremely sensitive to even the slightest change in the local
economy.
Answer:
Figure 1.
Retailers that utilize and integrate a combination of traditional store formats and
nonstore formats are referred to as __________.
a. multichannel retailers
b. scrambled merchandisers
c. mixed-brand retailers
d. dual distribution retailers
e. mixed-channel retailers
Answer:
A skimming pricing policy is likely to be most effective when: (1) lowering the price
has only a minor effect on increasing sales volume and reducing unit costs; (2) when
the high initial price does not attract competitors; (3) customers interpret high price as
signifying high quality; and (4) __________.
a. enough customers are willing to buy immediately at the high initial price
b. consumers tend to be price sensitive
c. it will be easier to set measurable sales unit goals
d. a lower price will significantly reduce unit costs
e. consumers perceive your product to be similar to other products on the market
Answer:
Salespeople for Godiva Chocolates use their laptop computers to process orders, plan
time allocations, forecast sales, and communicate with Godiva personnel and
customers. The use of __________ helps the Godiva salesforce provide customer
service.
a. technology
b. time management software
c. order processing software
d. proposal presentation software
e. salesforce networking
Answer:
Online consumers are called empowered consumers because
a. products and services purchased online often cost less than in a retail store.
b. online shopping does not require that they fight traffic, find a parking space, walk
long store aisles, and wait in line at checkout.
c. they are more informed and discerning shoppers.
d. there are websites for almost any good or service they want.
e. they can engage in an electronic dialogue with marketers.
Answer:
One advantage of using the Internet as an advertising medium is
a. it is similar to print advertising since it offers a visual message.
b. there is no need to segment markets.
c. messages are automatically translated into multiple languages.
d. initial encoding is easily outsourced.
e. it is relatively simple to run national online campaign across multiple sites.
Answer:
Marketing executives must translate estimates of customer demand into estimates of
a. personnel.
b. advertising expenditures.
c. ancillary product support.
d. revenues the firm expects to receive.
e. supply.
Answer:
Several artists in Charleston, South Carolina, have created an arrangement to sell their
paintings. They have set up an art gallery in downtown Charleston so tourists and art
lovers can look at their paintings and buy the ones they like. Each artist takes a turn
acting as the sales clerk at the gallery. In terms of the marketing channel, the artist who
is on duty in the gallery is acting as a(n) __________.
a. ultimate consumer
b. manufacturer
c. wholesaler
d. retailer
e. distributor
Answer:
Many automobile dealerships employ a non-negotiable or “no haggle” price strategy to
sell their cars. A customer who wants to buy a new or used car would pay the posted
price. These dealers probably adopted this pricing policy because
a. the industry was discussing the abandonment of self-regulation practices.
b. women have an intense dislike of price negotiation, yet still want to buy a car.
c. many recent immigrants into the United States were not accustomed to negotiation.
d. women distrust men in general and car salesmen in particular.
e. a sluggish economy guaranteed that negotiations would produce a less than adequate
return on investment.
Answer:
Figure 1.
According to Figure 1. above, which of the following brands would be the best choice if
the consideration set for a smartphone included the following rank-ordered evaluative
criteria: (1) display, (2) voice quality, (3) battery life, and (4) price?
a. Apple
b. BlackBerry
c. HTC
d. Motorola
e. Samsung
Answer:
General Motors, Ford, and Chrysler have all recently experienced financial distress
because
a. the Asian markets such as China, India, and Japan entered the North American
market and captured an even larger share.
b. the value pricing strategy used by the “big three” was flawed and North Americans’
perceptions of value had changed.
c. they were continually using deceptive pricing when establishing the manufacturer’s
suggested retail price on their vehicles.
d. their costs got out of control, causing their total costs to exceed their total revenues.
e. their product line was not changing with the times in order to meet changing
environmental standards regarding emissions.
Answer:
Which of the following statements regarding QVC is most accurate?
a. QVC broadcasts 12 hours a day 365 days a year.
b. QVC reaches approximately 195 million households in the U.S., U.K., Germany,
Italy, and Japan.
c. QVC never offers the same product two days in a row.
d. QVC sells all its items by dropping the price to $1. regardless of the product value, if
it is not sold in one day.
e. QVC entices customers to ‘stay tuned” by offering free products to random callers.
Answer:
The Arizona Biltmore in Phoenix is next to the Biltmore Fashion Park, a large shopping
mall located less than a mile away. The hotel wants to promote its proximity to the
shopping center as well as its many other amenities to convention-goers from other
states. Which of the following would MOST LIKELY help The Arizona Biltmore
communicate with potential convention attendees?
a. Place an ad in the in-flight magazines of all the major airlines targeting business/first
class flyers.
b. Send a mass mailing to all the local businesses.
c. Set up information kiosks at several locations within the Biltmore Fashion Park.
d. Offer free made-to-order breakfasts for guests staying at the hotel on business.
e. Offer special discount rates to guests coming from the East Coast.
Answer:
The quantity consumed or patronage (store visits) during a specific period is referred to
as
a. usage rate.
b. purchase metric.
c. consumption index.
d. consumption rate.
e. demand amount.
Answer:
A sales engineer is a __________.
a. salesperson who specializes in identifying, analyzing, and solving customer problems
and brings know-how and technical expertise to the selling situation, but often does not
actually sell products and services
b. salesperson who processes routine orders or reorders for products that are presold by
the company
c. salesperson who identifies prospective customers, provides customers with
information, persuades customers to buy, closes sales, and follows up on a customer’s
use of a product or service
d. person on the selling team who is responsible for supervising his or her company’s
R&D expenditures
e. member of the sales support team who does not directly solicit orders but rather
concentrates on performing promotional activities and introducing new products
Answer:
One of the most common measures in advertising is
a. cost per thousand impressions.
b. cost per thousand occurrences.
c. cost per thousand incidences.
d. cost per million impressions
e. cost per thousand frequencies.
Answer:
The sign at the entrance to the men’s store reads, “Buy one shirt, get a second shirt of
equal or lower value for only one dollar.” Which type of sales promotion is the men’s
store is using?
a. a contest
b. a premium
c. a deal
d. a rebate
e. a sample
Answer:
All of the following statements are true about coupons EXCEPT:
a. consumers delay product purchases as they wait for coupons.
b. studies suggest that market share decreases slightly during the period immediately
before coupons are distributed.
c. Groupon, LivingSocial, and other daily couponing services is expected to explode by
2015.
d. online coupons are growing but only account for a small percentage of total coupon
redemptions.
e. most are distributed as freestanding inserts in newspapers.
Answer:
Four key challenges that package and label designers face include: (1) connecting with
customers; (2) __________; (3) health, safety, and security issues; and (4) cost
reduction.
a. governmental regulations
b. environmental concerns
c. competition from global markets
d. patent and trademark issues
e. cultural and societal issues
Answer:
The interactive communication capabilities of Internet-enabled technologies increase
consumer convenience, reduce information search costs, and make choice assistance
possible. Communication also promotes __________.
a. consumer responsibility
b. closer global alliances
c. the development of web communities
d. social responsibility
e. courteous online dialogue
Answer: