Sequential product development has the advantage of not only being a team-oriented
approach, but also of being faster in bringing products to market.
Companies in several industries have recognized the buying power of the LGBT
segment of the U.S. population and have begun explicitly targeting these consumers
with gay-specific ads and marketing efforts.
During the prospecting step of the selling process, the salesperson meets the customer
for the first time.
The management strategy of environmental sustainability focuses on developing ways
to sustain the environment while also producing profits.
GreenTree Lawn and Garden Products is engaged in marketing strategy development.
The first part of the marketing strategy statement created by management should outline
the product’s planned price, distribution, and marketing budget for the first year.
While regulations exist to prohibit deceptive pricing practices, in reality, most reputable
sellers do the minimum required to meet the regulations.
Environmental sustainability is an important factor in supplier selection and
performance evaluation, as designing sustainable supply chains has become the right
thing to do.
Advertising is a good way to engage, inform, and persuade, regardless of the objective
of the message.
A company’s mission could appropriately be stated as “making more sales or profits.”
Abel is considering whether or not to get an e-reader. He has read online reviews of
three different kinds of readers and has talked with two friends who own e-readers.
Abel is at the awareness stage of the new product adoption process.
Alternative evaluation is the process by which people select, organize, and interpret
information to form a meaningful picture of the world.
Labels range from simple tags attached to products to complex graphics that are part of
the packaging.
Competitors may serve less-attractive segments or lead to more product differentiation.
Data ages quickly.
Power centers tend to be smaller than lifestyle centers.
Some industries commonly use two-part pricing, breaking the price down into a fixed
fee and a fixed usage rate.
When a producer uses exclusive dealing and the use of exclusive territorial agreements
to keep a dealer from selling outside its territory, it is completely legal.
Telemarketing has ceased to be an important tool for most B-to-B marketers owing to
the federal government’s Do Not Call Registry.
GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and
profit projections for some new products to find out whether they satisfy the company’s
objectives. This activity is called business product development.
The goal of competitive marketing intelligence is to evaluate and prevent high
employee turnover.
Customer engagement and value are the key ingredients in the marketer’s formula for
success.
People differ greatly in their readiness to try new products. In each product area, there
are “consumption pioneers,” also referred to as lagging adopters.
Print-Fast Printers prices its printer cartridges at a premium, since customers must buy
Print-Fast cartridges to work with their Print-Fast printer. Print-Fast uses
optional-product pricing.
To increase its “share of customer,” a firm concentrates on retaining as many customers
as possible over its lifetime.
Customers see competitive advantages as customer advantages.
Business markets buy goods and services for further processing or for use in their
production processes.
Trudie Jones works for a distribution channel firm that helps several electronics
companies find customers or make sales to them. Trudie works for a reseller.
Marketing researchers can conduct their own searches of secondary data sources by
using mail questionnaires and interviewing individuals.
When The Candy Store sets a low initial price in order to get its “foot in the door” and
to quickly attract a large number of buyers, the company is using market-skimming
pricing.
Entrepreneurial marketing exclusively involves developing formal marketing strategies
and adhering to them closely.
Self-service retailers serve customers who are willing to perform their own
locate-compare-select process to save time or money.
The workload approach is used to determine the type of sales force structure required
by a company.
Sales promotion involves building up a good corporate image, and handling or heading
off unfavorable rumors, stories, and events.
Megaretailers have shifted the balance of power between retailers and producers, giving
retailers more power.
Widespread adoption of the euro has decreased much of the currency risk associated
with doing business in Europe, making member countries with previously weak
currencies more attractive markets.
Environmental sustainability concerns have declined steadily over the past three
decades.
Tariffs are limits on the amount of foreign imports that a country will accept in certain
product categories.
Kiosk marketing features marketing messages and promotions delivered to on-the-go
consumers through their mobile devices.
All personal communication channels are controlled directly by the company.
A good marketing message will try to move consumers through several steps of the
buyer-readiness stages in a single message.
An increasing number of retailers and wholesalers have created their own ________,
also called store brands.
A) national brand
B) support brand
C) private brand
D) generic brand
E) manufacturer’s brand
________ segmentation divides buyers into different segments based on lifestyle or
personality characteristics.
A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic
When criticized about the value of intermediaries, marketers and resellers respond that
intermediaries ________.
A) are too few in number
B) are inefficient
C) provide only necessary services that must be provided by someone
D) actually underprice their services
E) are too competitive and difficult to work with
Which of the following is most likely true about shoppers who prefer to shop at
“lifestyle centers”?
A) They use coupons.
B) They prefer upscale stores.
C) They prefer indoor shopping locations.
D) They rarely dine out in expensive restaurants.
E) They are motivated by deals on last year’s merchandise.
Which of the following stages of the PLC is characterized with the same level or
slightly higher level of promotional expenditures in an attempt to respond to increasing
competition?
A) growth
B) decline
C) maturity
D) product development
E) adoption
________ describes changes in an individual’s behavior arising from experience.
A) Lifestyle
B) Learning
C) Perception
D) Cognitive dissonance
E) Selective attention
In a simple random sample, ________.
A) every member of the population has a known and equal chance of selection
B) the population is divided into mutually exclusive groups (such as blocks), and the
researcher draws a sample of the groups to interview
C) the researcher selects the easiest population members from which to obtain
information
D) the population is divided into mutually exclusive groups and random samples are
drawn from each group
E) the researcher finds and interviews a prescribed number of people in each of several
categories
If Jason used mostly open-ended questions in the survey to encourage people to answer
in their own words, he is performing ________ research.
A) focus group
B) qualitative
C) experiential
D) causal
E) exploratory
Which of the following is a disadvantage of a team-based approach to new product
development?
A) It takes longer for the development of a new product.
B) The development effort is not as effective because of employee inexperience.
C) It decreases the efficiency of the new product development process.
D) It can result in organizational confusion and tension.
E) The process does not work with the shorter life cycles of many of today’s products.
Which of the following would be classified as an opportunity in a SWOT analysis of
Fun-Spot?
A) A rival amusement park announces plans to open three new rides next season.
B) A new luxury hotel is being constructed in the area, with the aim of attracting more
high-spending families on vacation.
C) Ron and Gail have paid off the mortgage on Fun-Spot, significantly reducing their
monthly expenses.
D) Fun-Spot employees tend to be enthusiastic and young, projecting an image of fun
and vitality.
E) Fun-Spot plans to further diversify its offerings by beginning a two-week summer
camp for elementary school students.
Why does direct-mail marketing most likely remain a popular promotional tool for
marketers?
A) It does not disturb consumers enrolled in the Do Not Call Registry.
B) It provides something tangible for people to keep.
C) It builds long-term customer relationships.
D) It involves very low marketing costs.
E) It reaches the consumer very quickly.
BlueFin canned tuna has higher sales than its unbranded rival, even though the
unbranded tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has
________.
A) an aggressive brand personality
B) high brand equity
C) no brand commitment
D) negative brand equity
E) low brand relevance
A company should make several important decisions before deciding which markets to
enter. These include all of the following EXCEPT ________.
A) how many countries it wants to enter
B) what volume of foreign sales it wants
C) how many different products it wants to offer in a specific country
D) what its international marketing objectives are
E) what its international marketing policies are
An ideal price policy scenario for retailers would be to achieve ________ while earning
________.
A) low volume; high markups
B) low volume; low markups
C) high volume; high markups
D) high volume; low markups
E) high volume; zero markups
Which of the following questions is an example of a closed-end question?
A) Why do you think some people are more comfortable taking risks than others?
B) How can I improve my presentation skills?
C) Why do you think a single vote makes a difference?
D) Would you like to try our new ice cream flavor?
E) What is the best way to prevent weeds in a garden?
In response to charges of ________, marketers point out that because of ads, many
television and radio sites are free to users and also keep down the cost of magazines and
newspapers.
A) deceptive pricing
B) creating false wants
C) creating materialism
D) high promotion costs
E) cultural pollution
Maytag’s front-loading Neptune washer provides superior cleaning and energy
efficiency. The Neptune washer is an example of a ________ product.
A) deficient
B) pleasing
C) salutary
D) desirable
E) nondurable
The advertisements that use the Aflac duck or the GEICO gecko are using the message
execution style of ________.
A) lifestyle
B) technical expertise
C) testimonial evidence
D) slice of life
E) personality symbols
Which of the following is true about business purchases?
A) Business purchases involve more professional purchasing effort than consumer
purchases.
B) Business purchases involve fewer participants in decision making compared to
consumer purchases.
C) Purchasing agents are absent in business purchases.
D) Business purchases involve less technical and economic considerations compared to
consumer purchases.
E) Business purchases are usually quicker and more informal than are consumer
purchases.
Who can pass along information about new concepts or techniques to use in new
products?
A) competitors
B) salespeople
C) customers
D) suppliers
E) distribution channels
While shopping at KelfanDesigns.com, Shelly came across a checkbox beside which a
statement said, “I want to receive promotional offers from KelfanDesigns.com.” Which
of the following types of marketing is illustrated in this example?
A) telemarketing
B) viral marketing
C) direct response television marketing
D) contextual advertising
E) permission-based e-mail marketing
Consumer research, product development, communication, distribution, pricing, and
service are all core ________ activities.
A) positioning
B) marketing
C) outsourcing
D) production
E) logistics
Which of the following is an example of audiovisual material used by PR
professionals?
A) blogs
B) logos
C) vision statements
D) brochures
E) online videos
Which of the following is an off-price retailer that operates in a huge, warehouse-like
facility and offers few frills?
A) warehouse club
B) service retailer
C) convenience store
D) hypermarket
E) superstore
________ were the main form of retail clusters until the 1950s.
A) Strip malls
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Regional shopping malls
Electrowhip, a company that manufacturers blenders and electric whisks, has decided to
use a market penetration pricing strategy. Which of the following, if true, proves their
decision to be a wise one?
A) Electrowhip’s competitors utilize social media for marketing their products.
B) Electrowhip sells products whose image and quality support high prices.
C) Electrowhip operates in a market with many competitors.
D) Electrowhip does not operate in a price sensitive market.
E) Electrowhip’s products are intended to appeal to the elite in society.
In-store demonstrations, displays, sales, and loyalty programs are examples of
________.
A) direct marketing
B) sales promotion
C) public relations
D) personal selling
E) affinity marketing
A company should consider political and legal factors such as monetary regulations,
political stability, the country’s attitudes toward international buying, and ________
when determining whether to enter a specific country.
A) size of population
B) government bureaucracy
C) natural resources
D) income distribution
E) cultural norms
All of the following are disadvantages of test marketing EXCEPT that test marketing
________.
A) is typically expensive
B) can be time consuming
C) enables competitors to gain advantages
D) encourages dishonesty among participants
E) fails to guarantee product success in the market
Which of the following is true with regard to the inside sales force of a company?
A) The inside sales force is invariably more attentive to customer needs than the outside
sales force.
B) Unlike the outside sales force, the inside sales force does not require training.
C) Inside sales representatives engage in face-to-face interaction with customers.
D) The inside sales force is far more knowledgeable about customer habits than are
outside salespeople.
E) Inside salespeople provide support for the outside sales force, freeing them to spend
more time selling to major accounts and finding new prospects.
At its most basic form, a marketing channel consists of the producer and the ________.
A) retailer
B) sales agent
C) competitor
D) processor
E) consumer
Describe the advantage of selecting multiple sources of supplies.
Describe how marketers use multiple segmentation bases to their advantage.
What factors are assessed in test marketing?
Why would a producer use wholesalers rather than sell directly to retailers or
consumers?
Explain why the PLC can be applied to more than just brands.
A marketer’s fixed costs are $400,000. The variable cost is $16 per unit, and the price of
the product is $24 per unit. If the company wants to make a profit, how many units
must it sell and at what price?
Discuss the need to understand competitors as well as customers through competitor
analysis.
Name the three value disciplines.
How do primary data differ from secondary data?
What strategy should a marketer use upon learning that consumers are not buying a
product because they do not perceive a need for it?
How can researchers and managers arrive at the best interpretation of research findings?
Explain how a market follower can gain advantage from a market leader.
Describe the purpose, roles, and achievements of GATT and the WTO.
How does loyalty status enhance a company’s understanding of its consumers?
Explain how Whole Foods is able to compete against Walmart.
What type of strategy should a company use to manage its cash cows?
