Market segmentation has interested you ever since your first marketing course, and you
want to work for the type of organization that uses this technique. This means you
should avoid pursuing a job with:
a. Retail business organizations
b. Wholesale business organizations
c. Not-for-profit organizations
d. Manufacturing business organizations
e. You could pursue a job with any of the above, since all would use market
segmentation.
The Council of Better Business Bureaus is a national organization devoted to consumer
service and _____.
a. business selfregulation
b. deregulation
c. corporate lobbying
d. socially responsible investing
The distinctions between the types of retailers and the merchandise they offer are
getting blurred because of:
a. direct selling.
b. mass merchandising.
c. retail convergence.
d. home selling.
The term “internal partnership” refers to the relationship of an organization that
involves:
a. customers within the organization.
b. competitors who form a monopoly.
c. partner firms in the supply chain.
d. ultimate customers who are the end users of the product.
Which of the following is a limitation of trend analysis?
a. It is expensive and time consuming.
b. It can communicate marketing plans to the competitors before the firm introduces a
product to the total market.
c. It is unable to make reliable forecasts during periods of steady growth and stable
demand.
d. It assumes that the future events will continue in the same manner as the past.
A stratified sample differs from a quota sample as in a stratified sample:
a. researchers handpick participants from among selected segments or groups with
certain characteristics.
b. researchers select a sample of subgroups from which they draw respondents.
c. researchers select participants from among readily available respondents.
d. researchers select subsamples by a random process.
Prestige objectives reflect marketers’ recognition of the role of price in creating an
overall image of the firm and its product offerings.
a. True
b. False
Which of the following modes of transportation has the lowest transport cost?
a. Railroads
b. Water carriers
c. Air freight
d. Trucks
Demarketing is a reaction to a surplus of production materials that results in product
supply exceeding demand.
a. True
b. False
Which of the following types of services involves an intermodal coordination system
between motor carriers and water carriers?
a. Birdyback service
b. Piggyback service
c. Fishyback service
d. Horseback service
A price of $9.99 is an example of _____.
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
As a radio sales professional, you meet frequently with marketers who are skeptical of
radio’s value in a world with so many new media options. Choose the point(s) you make
in your sales pitch.
a. Radio is now one of the fastest-growing media options.
b. Radio is relatively low-cost.
c. While not yet a global medium, radio is a powerful local medium.
d. The diversity of stations allows advertisers to easily target their audiences.
e. Stations routinely adapt their programming to local preferences.
When a state decides to double the tax on alcoholic beverages and consequently,
increases their market price, the state is aiming at:
a. market suppression.
b. profit maximization.
c. cost recovery.
d. market domination.
When an organization desires to purchase a finished product, a product part, or service,
there are three basic options from which the company can choose. They are:
a. buying; leasing; offshoring
b. making; buying; leasing
c. making; buying; nearshoring
d. leasing; offshoring; buying
e. nearshoring; making; leasing
In contrast to the purchase of shopping products, consumers buy convenience products
only after comparing competing offerings on such characteristics as price, quality, style,
and color.
a. True
b. False
In the early stages of B2B transactions, marketers believed that online trading was
limited to only a few types of products.
a. True
b. False
Japanese automaker, Subaru, generates more than half of its sales in just four states
(Alaska, Colorado, Maine, and Washington). These states constitute Subaru’s:
a. primary market.
b. core region.
c. secondary market.
d. capital region.
A firm has decided to purchase hybrid delivery vehicles in response to rising gasoline
prices. Which step in the business buying process does this illustrate?
a. Determining the characteristics of the needed product
b. Recognizing a problem or opportunity
c. Searching for qualified sources
d. Evaluating proposals and selecting suppliers
A quota sample is a nonprobability sample divided to maintain the proportion of certain
characteristics among different segments or groups seen in the population as a whole.
a. True
b. False
The process of discussing a marketing problem with informed sources both within and
outside the firm and examining information from secondary sources is known as _____.
a. situation analysis
b. informal investigation
c. exploratory research
d. interpretative research
The interviews conducted during exploratory research with informed people outside the
firm are termed as formal investigations.
a. True
b. False
In piggyback operations, highway trailers and containers ride on railroad flatcars, thus
combining the long-haul capacity of the train with the door-to-door flexibility of the
truck.
a. True
b. False
Which act prohibits restraint of trade and monopolization and identifies a competitive
marketing system as a national policy goal?
a. The WheelerLea Act
b. The Sherman Antitrust Act
c. The Federal Trade Commission Act
d. The Clayton Act
Marketers are usually more concerned with the amount of discretionary income in
households.
a. True
b. False
Consumers’ online shopping experience has been steadily improving in quality and
convenience due to the efforts of the retailers.
a. True
b. False
The practice of moving jobs to vendors in countries close to the business’s home
country is referred to as _____.
a. merchandisers
b. trade industries
c. remanufacturing
d. nearshoring
e. end-use application segmentation
f. global sourcing
g. joint demand
h. inelastic demand
i. outsourcing
j. value analysis
k. gatekeeper
l. commercial market
m. reciprocity
n. vendor analysis
o. category advisor
p. modified rebuy
q. demographic characteristics based segmentation
r. influencers
s. buyer
t. customer-based segmentation
Online surveys are less intrusive than telephone surveys and allow participants to
respond at their leisure.
a. True
b. False
Promotional schemes like frequent shopper programs provide incentives to loyal
buyers. Considering Porter’s Five Forces model, such offers will:
a. reduce the threat of new entrants.
b. decrease the rivalry among competitors.
c. decrease the bargaining power of the supplier.
d. increase the threat of substitute products.
The group born between 1968 and 1979, now generally in their early 30s to early 40s,
often are referred to as _____.
a. Baby Boomers
b. teenagers
c. seniors
d. Generation X
The function performed by the gatekeeper in the company buying center is to:
a. inform potential suppliers about the required specifications of the product.
b. select a supplier and implement the procedures for securing the goods and services.
c. choose which goods and services will actually be bought.
d. control the information that all buying center members will review.