A country’s ________ indicates the average quality and quantity of goods and services
consumed within the country.
A) economic infrastructure
B) standard of living
C) gross domestic product (GDP)
D) gross national product (GNP)
E) business cycle
A channel consisting of one or more independent producers, wholesalers, or retailers,
each seeking to maximize its own profits with little concern for other channel members,
is a(n) ________.
A) independent vertical marketing system
B) conventional marketing system
C) independent channel
D) corporate vertical marketing system
E) administered vertical marketing system
Marketers estimate ________ when they determine whether anyone is likely to buy a
new product.
A) pricing points
B) distribution costs
C) commercial success
D) technical success
E) creative success
Through the data mining application of ________, marketers offer promotions to
noncustomers who share demographic characteristics with current customers.
A) customer retention
B) customer loyalty
C) customer acquisition
D) customer abandonment
E) market basket analysis
Areas of business within a firm that are distinct enough to have their own missions,
business objectives, resources, managers, and competitors are referred to as ________.
A) strategic business units
B) market development units
C) market penetration units
D) standard business units
E) competitive intelligence units
A market research bureau semiannually conducts national surveys of more than 25,000
consumers who complete monthly logs detailing their purchases of products. Many
companies subscribe to the bureau’s report publication to learn of the findings of these
surveys. This information can be classified as ________.
A) primary data
B) secondary data
C) mined data
D) experimental data
E) cross-tabulated data
The total quality management (TQM) philosophy involves all employees in ________.
A) customer relationship management
B) continuous product quality improvement
C) market positioning
D) creating sustainability
E) increasing the lifetime value of customers
Planning and implementing special events are typically responsibilities of ________.
A) a planning agency
B) a full-service agency
C) creative services
D) the PR department
E) the sales promotion department
Which of the following countries has the largest total GDP?
A) China
B) Japan
C) Spain
D) Ecuador
E) Hungary
The fastest and most expensive mode of transportation is ________.
A) railroads
B) water
C) the Internet
D) pipeline
E) air
People who are regular visitors to SyFy.com (a website maintained by a science fiction
cable network) and those who are regular visitors to BHG.com (a website maintained
by the producers of BHG-TV and the publishers of a women’smagazine) belong to
different ________ segments.
A) demographic
B) ethnographic
C) geodemographic
D) socioeconomic
E) psychographic
Which of the following is NOT an option for extending a product line?
A) cannibalization
B) downward line stretch
C) upward line stretch
D) two-way stretch
E) filling-out strategy
When we need a(n) ________, price and product quality may be irrelevant to our
purchase decision.
A) emergency product
B) staple product
C) impulse product
D) shopping product
E) unsought product
Consumers must engage in a great amount of learning to use a(n) ________ because no
similar product has ever been on the market.
A) dynamically continuous innovation
B) augmented product
C) competitive innovation
D) continuous innovation
E) discontinuous innovation
Marketers need to understand the ________ environment of a country from two
perspectives: the overall level of development of a country and the current stage of its
business cycle.
A) political and legal
B) sociocultural
C) economic
D) technological
E) natural
Which of the following is NOT true about warehouse clubs?
A) They are not full-service stores.
B) They often charge their customers with a modest annual membership fee.
C) They carry items in bulk.
D) They are a form of discount store.
E) They have not followed the pattern set forth by the wheel-of-retailing hypothesis.
The marketing team at Joe’s Auto World wants to use the information it collected from
last year’s online advertising campaigns, the most recent Census, and the company’s
internal CRM system to forecast the effectiveness of two proposed advertising
campaigns for the upcoming year. To accomplish this, the marketing team at Joe’s Auto
World will most likely use ________.
A) marketing controls
B) conversion rates
C) sentiment analysis
D) predictive analytics
E) search engine optimization
A building supply company has many high-volume customers and many low-volume
customers. A CRM system would be LEAST likely to help management decide to use
which of the following methods for communicating with low-volume customers?
A) Every November, send each customer a new calendar that has the phone number of
the building supply company printed on the cover.
B) Once or twice a year, mail a new product catalog to each customer.
C) Every few months, have a customer service representative from the building supply
company call each customer.
D) Have a sales representative make a personal one-on-one appointment with every
low-volume customer at least twice a month.
E) Give each low-volume customer the company Web address to check building supply
products sold by the company.
Some consumers worry that they will be affected by marketing messages without even
knowing it. They are concerned about ________ advertising.
A) alternative evaluation
B) subliminal
C) perceptual
D) innovative
E) comparative
Heinz stopped marketing its “Bite Me” brand of frozen pizza snacks due to
disappointing sales. This is an example of a ________.
A) filling-out strategy
B) downward line stretch
C) product line contraction
D) value stretch
E) cannibalization strategy
Many marketing experts recommend ________ programs that allow a company to talk
to individual customers and adjust elements of the marketing mix to satisfy the specific
needs of each customer.
A) customer relationship management
B) psychographic segmentation
C) transactional management
D) B2B marketing
E) C2C marketing
The widespread use of RFID chips to relay information about products during
distribution represents a change in the ________.
A) sociocultural environment
B) economic environment
C) legal environment
D) technological environment
E) competitive environment
________ means developing a marketing strategy aimed at influencing how a particular
market segment perceives a good or service in comparison to the competition.
A) Concentrated targeting
B) Positioning
C) Benefit segmentation
D) Mass customization
E) Customization
________ are Web applications that can help online shoppers find what they are looking
for at the lowest available price.
A) Shopbots
B) Heuristics
C) Search engine optimizers
D) Search engine marketers
E) Behavioral targeters
The purpose of a government-imposed ________ is to give domestic competitors an
advantage in the marketplace by making foreign competitors’ goods more expensive
than domestic goods.
A) monopoly
B) quota
C) tariff
D) oligopoly
E) embargo
An ad in a professional journal targeted to an audience of dentists asked dentists to
recommend Crest toothpaste to their patients. It offered toothpaste samples that dentists
could buy at cost to give to their patients to encourage patients to take better care of
their teeth. The manufacturer of Crest toothpaste was using ________.
A) viral marketing
B) stealth marketing
C) a push strategy
D) a pull strategy
E) public relations
A catalog retailer studies about 3,500 variables over the lifetime of a customer’s
relationship. It has found that customers who change residences are three times more
likely than customers who do not move as frequently to buy tables, fax machines, and
decorative products but are no more likely to buy jewelry or footwear. By using data
analysis to determine which promotion to target to customers who have recently moved,
this catalog retailer has engaged in ________.
A) customer retention
B) customer acquisition
C) customer abandonment
D) customer accrual
E) market basket analysis
Through the data mining application of ________, marketers identify big-spending
customers and target them for special offers that other customers won’t receive.
A) customer retention
B) customer acquisition
C) customer abandonment
D) competitive intelligence
E) market basket analysis
________ is the process of collecting, analyzing, and interpreting data about customers,
competitors, and the business environment to improve marketing effectiveness.
A) Market research
B) Marketing management
C) Competitive intelligence
D) Market intelligence
E) Internal marketing
A firm that plans to use a(n) ________ will add higher priced, higher quality items to its
product line.
A) upward line stretch
B) limited-line strategy
C) undifferentiated strategy
D) marketing mix contraction
E) cannibalization strategy
________ is a strategic business process that marketers use to plan, develop, execute,
and evaluate coordinated, measurable, persuasive brand communication programs over
time to targeted audiences.
A) Integrated marketing communications (IMC)
B) A push strategy
C) A pull strategy
D) Database marketing
E) Experiential marketing
Which of the following is an example of a good?
A) a massage
B) a handbag
C) a medical examination by a doctor
D) an idea for a new television show
E) dry cleaning
Which stage of activity in logistics involves shipping the product out to customers?
A) inbound logistics
B) operations
C) outbound logistics
D) reverse logistics
E) services
What are the two purposes of the laws governing American business? Describe how at
least two regulatory agencies fulfill these purposes.
In business-to-business products, what is the difference between capital equipment and
accessory equipment?
Explain why the selling orientation was popular during the period following World War
II.
What is the intangibility of service? How might a package delivery service deal with
the intangibility characteristic of services?
You work for a travel agency. Business has been slow, and you want to suggest some
promotions targeted to specific market segments. What three psychographic
segmentation variables would you recommend using?
When does a marketer use reminder ads?
Why might a retailer be interested in using the Census of Retail Trade, which classifies
retailers according to the North American Industry Classification System (NAICS)
codes?
Why has traditional mass market diminished as a way to talk to younger consumers?
What category of consumer adopters would purchase a product when the product is no
longer considered to be risky? Explain your answer.
What category of consumer adopters would purchase a product when it is no longer
considered new or different but before it is considered a necessity? Explain your
answer.
Give an example of how the recent economic downturn affected retailers’ strategies.
Explain the role of marketers in the information search step of the consumer
decision-making process. Give an example of how the marketer might execute this role.
When might a marketer be most likely to use informative advertising?
Briefly discuss how companies are adapting to the paradigm shift of the wired world.
Why is price lining a good practice for retailers?
Panasonic markets a line of digital cameras that use Leica lenses. Leica lenses are
legendary for their superb image quality. Panasonic is known for its consumer
electronics. What marketing strategy are Panasonic and Leica implementing? Support
your answer.
What is integrated marketing communication (IMC)? Explain how it differs from more
traditional marketing communication approaches.
Cellular phone service providers typically offer customers a set number of minutes for a
monthly fee plus a per-minute rate for extra phone usage. What is the pricing strategy
being implemented by these cellular phone service providers?