Which of the following is an example of a volume pricing objective?
a. A value-pricing objective
b. A profit maximization objective
c. A market-share objective
d. A target-return objective
A Swedish telephone maker transfers phones costing $10 to produce to its U.S.
subsidiary for a transfer price of $20. The U.S. subsidiary sells the phones to retailers
for $25 each and spends $5 per phone in promotion and distribution expense. The U.S.
subsidiary:
a. makes $10, on which it pays U.S. taxes.
b. makes $15, all of which is taxable in the United States.
c. breaks even on the deal because it spends all its revenues.
d. makes a total of $25 on the deal because the phones are effectively free.
After identifying a target market, a retailer must:
a. concentrate on determining the ideal levels of inventory to be maintained.
b. devise marketing plans to expand their target market.
c. develop marketing strategies to attract chosen customers to its stores or websites.
d. segment the market based on factors such as family income and customer lifetime
value.
In some cases, outsourcing and offshoring can reduce a company’s ability to respond
quickly to the marketplace.
a. True
b. False
Which of the following modes of transportation offers the most flexibility in handling?
a. Pipelines
b. Air freight
c. Water freight
d. Motor carriers
When a product is unique or difficult to categorize, the thought process involved in a
purchase decision is known as:
a. research analysis.
b. extensive buying analysis.
c. limited problem solving.
d. extended problem solving.
A firm that brings in goods produced abroad to sell domestically or to be used as
components in its products is called a(n) _____.
a. exporting
b. WTO
c. infrastructure
d. exchange rate
e. tariff
f. import quota
g. dumping
h. ISO certification
i. foreign licensing
j. multinational corporation
k. global marketing strategy
l. multidomestic marketing strategy
m. countertrade
n. related party trade
o. exchange control
p. customs union
q. CAFTA-DR
r. importer
s. embargo
t. franchise
Everyday low pricing is a pricing strategy that relies on short-term cost-cutting tactics
such as coupons and rebates.
a. True
b. False
The sales manager of your fitness center has convinced several members to buy the
center’s nutritional counseling service as well as its personal training package. You are
pleased at this accomplishment in ____ selling.
a. Cross
b. Field
c. Upstream
d. Downstream
e. Inbound
Controlling part of the supply chain that involves finished product storage, outbound
logistics, marketing and sales, and customer service constitutes _____.
a. reverse management
b. horizontal integration
c. downstream management
d. backward integration
Which of the following is the most common type of advertising on the web?
a. Banner advertisements
b. Pop-ups
c. Interstitials
d. Advergames
A(n) _____ is a national brand sold exclusively by a retail chain.
a. trade dress
b. brand preference
c. brand insistence
d. generic product
e. family brand
f. brand equity
g. product diversification
h. trademark
i. brand extension
j. consumer innovator
k. brand name
l. private brand
m. brand manager
n. universal product code (UPC)
o. cannibalization
p. product liability
q. captive brand
r. brand mark
s. line extension
t. label
Transaction based marketing emphasizes retaining customers over making a sale.
a. True
b. False
Which of the following statements about B2C emarketing is true?
a. B2C ebusiness involves online sale of services as much as physical goods.
b. B2C transactions account for most of the emarketing activity.
c. B2C emarketing facilitates transactions between organizations.
d. Service providers prefer the B2B model to B2C as there is not enough scope for
service transactions in B2C ebusiness.
In the context of independent wholesaling intermediaries, which of the following
statements is true regarding agents and brokers?
a. They provide a production facility to a manufacturer on rent.
b. They help a manufacturer in designing a new product.
c. They never take title of the goods that they handle.
d. They buy products from a truck jobber and sell it through the orders placed on the
Internet.
A profit-maximizing price rises to the point at which further increases will cause
disproportionate decreases in the number of units sold.
a. True
b. False
Coupons are the most widely used forms of consumer-oriented sales promotion.
a. True
b. False
The company, Eco Nuts was featured on Shark Tank and has become one of the show’s
success stories due to the growing acceptance of their product as an alternative to
traditional laundry detergent. The company typically targets women, aged 40 to 65 who
have total annual household income above $60,000 and are concerned about
sustainability. What step in the market segmentation process has Eco Nuts utilized with
this description?
a. develop a relevant profile for each segment
b. forecast market potential
c. forecast probably market share
d. select specific market segments
The identity of the _____ is the most difficult role for salespeople to pinpoint.
a. user
b. decider
c. gatekeeper
d. influencer
Physical distribution refers to a broad range of activities aimed at efficient movement of
finished goods from the end of the production line to the consumer.
a. True
b. False
Electronic data interchange (EDI) involves computer-to-computer exchanges of
invoices, orders, and other business documents.
a. True
b. False
A retail chain that sells consumer electronics is developing a website inhouse to sell its
products online. The company has finalized name, appearance, and purpose of the
website. The next step in the website development process is to:
a. measure the effectiveness of the website.
b. decide on the primary objective of the site.
c. connect the site to the Internet by placing the required computer files on the server.
d. determine and develop the content of the site.
The use of humor in advertising is common since most people agree on what types of
messages are funny.
a. True
b. False
The number of product liability lawsuits has fallen in recent years thanks to better
designed products and more detailed regulations.
a. True
b. False
A biotechnology company and a medical school have formed a partnership to develop a
new class of cancer-fighting drugs. This is an example of a(n) _____ partnership.
a. buyer
b. seller
c. internal
d. lateral
A television commercial shows several enthusiastic teens smiling widely and speaking
in turn directly to the camera. Using the featured skincare product has changed their
lives! It costs more than what you find in the corner drugstore, but it is worth every
penny! After weeks of trying one product after another, embarrassed by acne breakouts
and shy about socializing with others, now they have clear faces with a healthy-looking
glow! What form of product-related segmentation has driven the development of this
marketing campaign?
a. segmenting by geographic location
b. segmenting by benefits sought
c. segmenting by psychographics
d. segmenting by brand loyalty
e. segmenting by demographics
Personal selling is the most novel form of promotion.
a. True
b. False
A population, used for market research purposes, is a subgroup of the total sample
selected for analysis.
a. True
b. False
The response rates for direct-mail marketing are measurable and higher compared to
other types of advertising.
a. True
b. False
The most popular method of pricing is _____ pricing.
a. cost-plus
b. breakeven
c. incremental-cost
d. full-cost
Which of the following products would most likely have an inelastic demand curve?
a. HP genuine ink for an HP printer
b. paper towels
c. photocopier paper
d. pencils