Retailers such as Bed Bath and Beyond often use the ______ element of the marketing
mix to influence consumers to purchase a greater number of products by offering a
discount if a customer purchases multiple units such as 3 for $10.
a. price
b. promotion
c. product
d. distribution
Brandon is a sales manager and often is involved in recruiting new sales representatives
to join the firm. He has been trained in conducting behavioral-based interviews so he
can identify whether candidates possess the appropriate characteristics to be successful
in a consultative sales position. Which of the following characteristics would MOST
LIKELY be important to Brandon during his interviews?
a. listening skills
b. entertaining personality
c. mathematical and quantitative skills
d. physical attractiveness
This personal selling technique works hand in hand with relationship selling _____ and
involves meeting customer needs by listening to them, understanding their problems,
paying attention to details, and following through after the sale.
a. span of control
b. field selling
c. inside selling
d. order processing
e. virtual sales team
f. team selling
g. approach
h. creative selling
i. presentation
j. sales promotion
k. premium
l. coupon
m. network marketing
n. cold calling
o. expectancy theory
p. over-the-counter selling
q. missionary selling
r. relationship selling
s. push money
t. consultative selling
Product lifecycles can stretch indefinitely as a result of decisions designed to increase
the frequency of use by current customers; increase the number of users for the product
or change package sizes, labels, or product quality.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
Pricing objectives that focus on attaining a target return on investment are examples of
_____ objectives.
a. profitability
b. volume
c. not-for-profit
d. prestige
Which of the following is a pricing technique that is used to evaluate consumer demand
by comparing the number of products that must be sold at a variety of prices to cover
total cost with estimates of expected sales at the various prices?
a. Modified breakeven analysis
b. Cost-plus analysis
c. Incremental-cost analysis
d. Segmentation analysis
Which of the following is a disadvantage of guerrilla marketing?
a. Customers don’t pay attention to it as it is a very traditional form of marketing.
b. Marketers have to invest a lot of money for the innovation involved in guerrilla
marketing.
c. Competitors can easily imitate the techniques used in guerrilla marketing.
d. Marketers run the risk of reaching a limited number of potential consumers.
Most businesses slowly change the amounts they charge customers, even when they
clearly recognize strong demand.
a. True
b. False
An industry with only a few large competing firms is called a(n):
a. regulated monopoly.
b. pure monopoly.
c. perfect market.
d. oligopoly.
When wholesalers transport and stock products in inventory, they accept the possibility
of spoilage, theft, or obsolescence. This function performed by the wholesaling
intermediary is referred to as _____.
a. selling
b. analyzing
c. risk taking
d. financing
A university sells customized sweatshirts, pullovers, and jerseys to its students and
staff. This is an example of _____.
a. cause marketing
b. organization marketing
c. person marketing
d. event marketing
The practice of using outside vendors to provide goods and services that were formerly
produced in-house is known as _____.
a. outsourcing
b. sole sourcing
c. supply chain inversion
d. leasing
Menhir Systems, an information technology company in Germany has moved its
customer service and accounting operations to Austria to take advantage of the low
labor costs. Also the closeness in geography and cultural values is an added advantage
in choosing Austria for these operations. Menhir Systems is engaging in _____.
a. nearshoring
b. inshoring
c. leasing
d. sole sourcing
Keith is a marketer for Olympus cameras. He arranged for an agreement with a search
engine whereby Olympus would pay the search engine for listing its products among
the top three results whenever a computer user ran a search for digital cameras. This is
an example of:
a. integrated marketing.
b. active marketing.
c. search marketing.
d. interactive marketing.
Psychographic segmentation is the most common method of market segmentation.
a. True
b. False
Marilyn is a grandmother to 3 and lives in Oklahoma City. She still uses her DVD
player but her grand kids are wanting to watch shows on Netflix when they visit her
house. She does have high speed Internet access but does not yet have a Netflix
account. However, she plans to subscribe to Netflix in the next several weeks. Netflix
has over 40 million paid subscribers in the United States representing approximately
30% of total United States households. Netflix continues to add several million
subscribers every quarter. Which category of “adopter” would best describe Marilyn?
a. early majority
b. consumer innovator
c. early adopter
d. laggard
The number of alternatives a consumer actually considers in making a purchase
decision is referred to as the _____.
a. evoked set
b. postpurchase evaluation
c. evaluative criteria
d. problem space
Strategic planning has a critical impact on a firm’s destiny because it provides _____ to
its decision makers.
a. customer input
b. individual goals
c. departmental goals
d. longterm direction
Business strategist Michael E. Porter identified five competitive forces that influence
_____ in a model called Porter’s Five Forces.
a. planning strategies
b. corporate social responsibility
c. consumer behavior
d. sustainable development
Which of the following is the largest racial/ethnic minority group in the United States?
a. African Americans
b. Native Americans
c. Asian Americans
d. Hispanic Americans
All planning strategies have the goal of creating:
a. sustainable competitive advantage.
b. undifferentiated markets.
c. a market with no distinct segments.
d. barriers to market entry.
A(n) _____ gathers buyers and sellers in one location and allows potential buyers to
inspect merchandise before submitting competing purchase offers.
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
_____ are goods and services purchased for use either directly or indirectly in the
production of other goods and services for resale.
a. Impulse goods
b. Shopping goods
c. Business products
d. Unsought products
A successful implementation of a straight extension strategy creates universal
recognition of a product for consumers from country to country.
a. True
b. False
Consumerism is defined as a social force within the marketing environment that aids
and protects the consumer by exerting legal, moral, and economic pressures on business
and government. The conceptual framework for consumer rights include all of the
following except:
a. The right to be safe
b. The right to choose freely
c. The right to be informed
d. The right to fair pricing
e. The right to be heard
As consumers are willing to exert considerable effort to obtain specialty products,
producers can promote them through relatively few retail locations.
a. True
b. False
Pureplay eretailers, even with no real experience of selling and satisfying customers,
have been more successful than traditional retailers who entered ebusiness.
a. True
b. False
_____ is a sales forecasting method that gathers and redistributes several rounds of
anonymous forecasts until participants reach a consensus.
a. strategic alliance
b. relationship marketing
c. cobranding
d. frequency marketing
e. value chain
f. database marketing
g. exponential smoothing
h. customer relationship management
i. trend analysis
j. internal customers
k. comarketing
l. quick-response merchandising
m. affinity program
n. lifetime value of a customer
o. Delphi technique
p. national account selling
q. transaction-based marketing
r. customer churn
s. buzz marketing
t. grassroots marketing
Psychological pricing is based on the premise that:
a. certain prices or price ranges make products more appealing to buyers than others.
b. one-price policies appeal to most people and suit mass-marketing programs.
c. setting a limited number of prices for a selection of merchandise has a certain appeal.
d. lower-than-normal prices as part of recurring marketing initiatives creates demand.
A(n) _____ occurs when a purchaser is willing to reevaluate available options for
repurchasing a good or service.
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
The limited occasions when the key requirements of a market and the particular
competencies of a firm best fit together are referred to as:
a. barriers to entry.
b. strategic windows.
c. question marks.
d. threats.
Airlines continue to purchase the same amount of fuel in order to meet their operational
needs regardless of the rise in prices of jet fuel. The type of demand for jet fuel in the
above situation is an example of an inelastic demand.
a. True
b. False
When a consumer begins to feel dissatisfied with a product or service recently
purchased, the anxiety they feel is called:
a. cognitive dissonance.
b. functional fixedness.
c. product revaluation.
d. mental set.