Fastenal was one of the first business-to-business suppliers to offer vending machines
or kiosks in manufacturing facilities to enable their customers’ employees to “purchase”
supplies such as gloves and safety equipment including goggles, ear protection, and
masks. This innovation enabled the customers to track their purchases and hold
employees accountable for using supplies. This is an example of:
a. automatic merchandising
b. telemarketing
c. direct-response retailing
d. direct mail
_____ maximization is identified as the point at which the additional revenue gained by
increasing the price of a product equals the increase in total costs.
a. Profit
b. Volume
c. Sales
d. Market share
_____ is the amount by which a retailer reduces the original selling price of a product.
a. stock-keeping unit (SKU)
b. markup
c. markdown
d. retail convergence
e. scrambled merchandising
f. atmospherics
g. broker
h. general merchandise retailer
i. category killer
j. rack jobber
k. supercenter
l. auction house
m. specialty store
n. retailers
o. mass merchandiser
p. truck jobber
q. direct marketing
r. drop shipper
s. planned shopping center
t. wheel of retailing
Stefan has worked in the restaurant industry for over 20 years and recently signed a
lease and plans to open his own restaurant in the next several months. He’s working
with his chef and bar manager to determine menu items and pricing. Of course, his
pricing must be competitive as well as enable the business to cover costs and earn a
profit. He decides that he will utilize a 60% mark-up on costs and informs the chef and
bar manager to utilize this basis when determining prices for menu items. What method
of pricing is Stefan utilizing?
a. cost-plus pricing
b. full-cost pricing
c. incremental-cost pricing
d. value-add pricing
Virtue.com, a women’s clothing brand that sells its products online intends to
automatically collect data from Internet browsers to track the customer’s preferences.
These data will help the company to improve its website to provide better search results
and also to target its ads well. Which of the following types of software can be used by
the company to collect customer information?
a. Firewall
b. Spyware
c. Shopbot
d. RSS
Other things being equal, stores that offer more services charge smaller markups to
cover their costs.
a. True
b. False
The primary purchasing need of an organization is meeting the demands of its own
customers.
a. True
b. False
You launched the first ad campaign for your new nutrition bar just a few weeks ago, and
are pleased to see hundreds of requests for more information about its ingredients on
the company’s Facebook page and Twitter account. The nutrition bar is most likely in
which stage of the consumer adoption process?
a. Adoption
b. Evaluation
c. Awareness
d. Interest
e. Accelerated
To develop expertise in B2B emarketing, you are reading about extranets. Now you
understand enough about these networks to write a paper on the topic for your
marketing professor. Choose the error(s) she identified while grading your paper.
a. Extranets are accessible to both customers and suppliers.
b. Extranets are the next generation of private exchanges.
c. Use of private exchanges differs from cbusiness.
d. Extranets provide secure internal networks.
e. Extranets are used for more than ordering and fulfillment processes.
Which of the following data collection methods is considered as the best means for
obtaining detailed information about consumers?
a. Telephone interviews
b. Focus groups
c. Mail surveys
d. Personal interviews
A(n) _____ is a part of an organization to which revenue and controllable costs can be
assigned.
a. competitive bidding
b. penetration pricing strategy
c. list price
d. trade discount
e. price flexibility
f. promotional pricing
g. loss leader
h. cannibalization
i. bundle pricing
j. odd pricing
k. transfer price
l. profit center
m. skimming pricing strategy
n. competitive pricing strategy
o. pricing policy
p. market price
q. noncumulative quantity discount
r. step out
s. bot
t. cash discount
In the practice of relationship marketing, the definition of a customer is taken to another
level. Which of the following best illustrates how a company practicing relationship
marketing is different from a traditional transactionbased marketer?
a. The city pool allows kids 12 years and younger to swim for free on Fridays.
b. A local coffee shop distributes coupons for $.50 off each cup of coffee.
c. The purchasing department of a defense contractor invites its suppliers to attend an
annual golf outing.
d. The heads of the financial departments meet with the Chief Financial Officer to
discuss yearend financial reporting.
The Original Penguin clothing brand which features a cute penguin with a tie wrapped
around its neck has made a successful comeback to men’s fashions since 2003. The
brand is popular among young men and the company recently articulated its interest in
generating a 10% increase in sales among college students in the United States for the
next year. Which step in the marketing planning process best corresponds to the
articulation of a 10% increase in sales?
a. determine organizational objectives
b. assess organizational resources and evaluate risks and opportunities
c. formulate strategy
d. implement strategy through operational plans
Jamie owns an engineering firm that provides engineering and design services to
Fortune 500 firms. Jamie has several offices in the United States and also employs
engineers in India so his firm can provide services to his customers 24 hours each day.
Jamie is using _______ by employing engineers in India.
a. offshoring
b. nearshoring
c. outsourcing
d. websourcing
The level of competition for business in the market is an important criteria considered
by retailers while selecting the target market.
a. True
b. False
The AIDA concept refers to the steps in:
a. the development of an IMC program.
b. the consumer purchase decision process.
c. the distribution of a product.
d. the production of a product.
Modified breakeven analysis forces the marketer to consider whether the consumer is
likely to purchase the number of units of a good or service required for achieving
breakeven at a given price.
a. True
b. False
Carlita works for Dell Computers in their outbound call center as an inside sales
representative. She primarily focuses on small businesses – those with fewer than 10
employees. Based on Carlita’s customers, what type of segmentation is Dell using?
a. demographic
b. customer-based
c. end-use application
d. purchase category
An advertisement that creates warm feelings of goodwill toward the advertiser and his
products is altering the _____ component of attitude.
a. tangible
b. behavioral
c. traditional
d. affective
Delhaise, a leading service provider in hospitality industry, segments its business clients
based on the services required by them, in order to meet their specific requirements.
They modify their services based on the needs of the clients. Which of the following
segmentation approach is being employed by Delhaise?
a. End-use application segmentation
b. Customer-based segmentation
c. Geographic segmentation
d. Demographic segmentation
The practice of dividing an overall market into homogeneous groups based on the
location is called _____.
a. target market
b. market segmentation
c. cohort effect
d. primary metropolitan statistical area
e. differentiated marketing
f. concentrated marketing
g. micromarketing
h. positioning map
i. VALS
j. AIO statement
k. core region
l. consumer product
m. demographic segmentation
n. Pareto’s law
o. psychographic segmentation
p. geographic information systems
q. positioning
r. geographic segmentation
s. business product
t. mass marketing
The choice between secondary and primary data is tied to cost, applicability, and
effectiveness.
a. True
b. False
Many notforprofits utilize _____ in order to influence people to accept their goals or
contribute in some way.
a. utility
b. buzz marketing
c. exchange process
d. seller’s market
e. buyer’s market
f. marketing myopia
g. social responsibility
h. relationship marketing
i. person marketing
j. place marketing
k. event marketing
l. organization marketing
m. interactive marketing
n. lifetime value of a customer
o. social marketing
p. onetoone marketing
q. strategic alliances
r. notforprofit organizations
s. ethics
t. mobile marketing
u. wholesalers
v. transactionbased marketing
The original owner of a brand name can claim exclusive rights to the name even when
the brand name becomes a descriptive generic name for a class of products.
a. True
b. False
According to the Young & Rubicam’s BrandAsset Valuator model, the _____ is a
dimension of brand personality that refers to the extent of consumer awareness of a
brand and the understanding of what a good or service represents.
a. knowledge
b. esteem
c. recognition
d. differentiation
_____ are websites that provide virtual communities for people to share daily activities
and increase their circle of online friends.
a. Blogging sites
b. Social networking sites
c. Bookmarking sites
d. Social news sites
The disadvantage of core competencies is that they can be easily duplicated by
competitors.
a. True
b. False
An advertisement titled “The Ultimate Place for a vacation” is an example of _____.
a. utility
b. buzz marketing
c. exchange process
d. seller’s market
e. buyer’s market
f. marketing myopia
g. social responsibility
h. relationship marketing
i. person marketing
j. place marketing
k. event marketing
l. organization marketing
m. interactive marketing
n. lifetime value of a customer
o. social marketing
p. onetoone marketing
q. strategic alliances
r. notforprofit organizations
s. ethics
t. mobile marketing
u. wholesalers
v. transactionbased marketing
The pricing policy in which a lower-than-normal price is used as a temporary ingredient
in a firm’s marketing strategy is called _____.
a. competitive bidding
b. penetration pricing strategy
c. list price
d. trade discount
e. price flexibility
f. promotional pricing
g. loss leader
h. cannibalization
i. bundle pricing
j. odd pricing
k. transfer price
l. profit center
m. skimming pricing strategy
n. competitive pricing strategy
o. pricing policy
p. market price
q. noncumulative quantity discount
r. step out
s. bot
t. cash discount
A clothing brand allows its customers to interact with each other on their website so that
the customers can share their views and opinions about the company’s products. The
company has also created a Web page on a social networking site where the customers
can express their opinions. This type of marketing strategy is an example of _____.
a. internal marketing
b. viral marketing
c. societal marketing
d. distributive marketing
A market development strategy concentrates on developing new products for existing
markets.
a. True
b. False