Which of the following best defines audience selectivity?
a. The number of target consumers exposed to a commercial at least once during a
specific period
b. The number of times an individual is exposed to a given message during a specific
period
c. The ability of an advertising medium to reach a precisely defined market
d. The cost associated with a consumer clicking on a display or banner ad
Three Arrows Inc. is a company that manufactures paper bags from recycled paper. Its
marketers receive complaints that the bags get wet easily and tear after a few weeks of
use. The company decides to respond to their customers’ complaints by using a thicker,
waterproof paper. This is an example of _____.
a. product placement
b. functional modification
c. planned obsolescence
d. quality modification
Wonder Coffee is a chain of coffee serving outlets and specializes in selling different
flavors of coffee. The increase in the price of sugar does not affect Wonder Coffee’s
coffee prices very much and sales continue at their usual level. Identify the type of
demand in this scenario.
a. Inelastic demand
b. Fluctuating demand
c. Joint demand
d. Elastic demand
Which of the following statements is true of the attitude of teens in the United States?
a. Most teens prefer to carry out offline shopping
b. According to a Packaged Facts study, 75 percent would rather have a new pair of
shoes than 50 new MP3 downloads, and 63 percent would choose a new pair of jeans
over concert tickets
c. Teens spend more on food than any other cohort group.
d. Most teens are influenced by traditional advertising, sales reps, and wordofmouth
recommendations than any other cohort.
When a customer buys a pair of jeans, which of the following is creating form utility?
a. The government
b. The supermarket
c. The transport company
d. The clothing factory
Which of the following statements is true of the term quota?
a. It refers to a limit on the amount of a specific product that can enter a country.
b. It refers to the exclusion of all products from certain countries or companies.
c. It refers to a tax levied on the goods entering a country.
d. It refers to an agreement to stimulate international trade.
In a(n) _____ situation, a purchaser wants to make a change in the original good or
service.
a. initiation buy
b. straight rebuy
c. new buy
d. modified rebuy
A customer’s assessment of whether a organization’s goods or services have met his or
her needs and expectations is defined as ______.
a. customer satisfaction
b. customer value
c. customer relationship
d. customer management
Which of the following is true of consumers in consumer markets?
a. They often follow the practice of reciprocity.
b. They tend to buy in larger quantities than business consumers.
c. They approach purchasing more formally than business buyers.
d. They normally buy products rather than lease them.
Nessca Motors, a wellknown company based in Nebolina, manufactures engines. Its
management recently signed a joint venture with Singletone Inc., a small company
based in Trinitia. Of the following scenarios, which would be the most likely to
happen?
a. The government of Trinitia will restrict Nessca Motors’s entry into the country.
b. Nessca Motors and Singletone Inc. will switch to contract manufacturing as the next
step.
c. Nessca Motors will buy a part of Singletone Inc.
d. Singletone Inc. will pay a royalty to Nessca Motors.
Which way of entering the global marketplace subjects a company to the highest risk,
but offers the highest return?
a. Exporting
b. Contract manufacturing
c. Joint venture
d. Direct investment
Which of the following terms refers to a meeting in which the salesperson offers a sales
proposal to a prospective buyer?
a. Sales proposal
b. Sales presentation
c. Sales offer
d. Negotiation
Which of the following is/are the benefits of outsourcing?
a. Cost saving
b. Corporate growth
c. Increase in productivity and revenue growth
d. All of the above
Jennifer’s favorite soft drink is 7 Up. She orders a 7 Up in a restaurant and is told that
the restaurant serves only Coke products, so Jennifer just orders water instead. She also
insists that she can tell the difference between 7 Up and Sprite. Which learning concept
is Jennifer demonstrating?
a. Stimulus generalization
b. Stimulus discrimination
c. Perceptual generalization
d. Selective generalization
A(n) ________________ is a brand name owned by a wholesaler or a retailer.
a. captive brand
b. private brand
c. manufacturer’s brand
d. individual brand
Which of the following is true of a retailer channel?
a. It is most common when the intermediary is large and can buy in large quantities
directly from the manufacturer.
b. It uses agents and brokers to procure products from manufacturers.
c. It is commonly used for lowcost items that are frequently purchased, such as candy,
cigarettes, and magazines.
d. It involves transferring ownership directly from the producer to the ultimate
consumer.
Which of the following illustrate a difference between a push strategy and a pull
strategy?
a. Social media are used in a push strategy, whereas personal selling is used in a pull
strategy.
b. Wholesalers are targeted in a push strategy, whereas end consumers are targeted in a
pull strategy.
c. A push strategy focuses on content marketing, whereas a pull strategy focuses on
offering aggressive discounts.
d. No intermediaries are involved in a push strategy, whereas wholesalers and retailers
are involved in a pull strategy.
Hannah likes to frequent Citrus, a fine dining restaurant, as she loves the beef lasagna
there and orders it every time she eats there. However, during her recent visit, the
lasagna she was served was undercooked. When she informed the manager about it, she
learned that the food was cooked by a replacement chef as the usual chef was on leave.
In this scenario, which of the following characteristics of services is responsible for the
lack of consistency and quality of the food at Citrus?
a. Heterogeneity
b. Perishability
c. Intangibility
d. Inseparability
Which of the following statements is true of a new buy?
a. The buyer cannot afford to run out of supply.
b. It is a situation that requires a change in the original service.
c. It is a situation that is less critical and quick.
d. It is a situation that is more timeconsuming than a modified rebuy.
Gross domestic product is the total market value of all final goods and services
produced during a period of time.
a. True
b. False
The legal process whereby a company allows another firm to use its manufacturing
process, trademarks, patents, trade secrets, or other proprietary knowledge is
______________.
a. licensing
b. contract manufacturing
c. joint venture
d. direct foreign investment
Which statement is true of the factors determining the level of consumer involvement?
a. Involvement is not related to consumer interests.
b. Consumers are not involved when the perceived risk in purchasing a product is high.
c. Consumers become less involved in the purchase of a familiar product.
d. Involvement decreases as the social visibility of a product increases.
Which of the following is correct about social media monitoring?
a. It is a form of observation marketing research that combines a consumer’s online
activity with psychographic and demographic profiles compiled in databases.
b. It is the use of automated tools to monitor online buzz, chatter, and conversations.
c. It is the study of human behavior in its natural context; involves observation of
behavior and physical setting.
d. It is a research method that relies on four types of observation: people watching
people, people watching an activity, machines watching people, and machines watching
an activity.
Joshua is a millionaire, and he manages several successful companies. He usually
interacts with people of similar status. Given this information, Joshua and the people he
interacts with are part of a _____.
a. family
b. social class
c. popular culture
d. reference group
The attention that social media attracts, such as the number of followers or fans and
which is generally used as the first step in the marketing funnel, and when social media
is often paired with paid digital media like display advertising and textbased ads to
increase its effectiveness, is often referred to as ___________.
a. awareness
b. conversion
c. engagement
d. optimization
A company that is heavily engaged in global trade, beyond exporting and importing, is
called ___________.
a. a regional firm
b. a multinational corporation
c. a capital intensive firm
d. an export agent
Schools, hospitals, colleges and universities, churches, labor unions, fraternal
organizations, civic clubs, foundations, and other socalled nonbusiness organizations
are the components of which business market segment?
a. Federal government
b. Producers
c. Institutions
d. State, county, and city government
Advertising is increased as a product enters the decline stage of its life cycle.
a. True
b. False
Which statement is true of the demand management process?
a. It aligns supply and demand throughout the supply chain by creating
customerfocused plans of action immediately after an actual purchase is made
b. It seeks to minimize the costs of serving multiple types of customers who have
variable wants and needs
c. It presents a multicompany, unified response system to the customer whenever
concerns are voiced
d. It ensures that firms in the supply chain have the needed resources to manufacture
with flexibility and to move products through a multistage production process
As long as smartphones are manufactured and are in demand, the demand for new apps
will never die. This exemplifies ___________ demand.
a. fluctuating
b. joint
c. derived
d. inelastic
Both Goodwill stores and thredUP ______.
a. are online used goods retailers
b. are brickandmortar used goods retailers
c. turn customers into suppliers
d. turn suppliers into customers