Currency markets operate under a system of _____, which is a system in which the
prices of different currencies move up or down based on the demand for and the supply
of each currency.
a. countertrade
b. floating exchange rates
c. dumping
d. contract manufacturing
Print advertising can be used to sell goods and services to potential customers who are
hard to locate.
a. True
b. False
Run, a sports shoe manufacturing company, began its campaign by spending $1 million
on advertising. Currently, Run spends $200 million on advertising. Initially, the
advertisements contributed to the gradual increase in returns, but the company now
confronts diminishing returns. In this scenario, which of the following phenomena
explains Run’s diminishing returns?
a. A unique selling proposition
b. The advertising response function
c. Switch and bait advertising
d. Strategic advertising
Market segmentation helps marketers define customer needs and wants more precisely
because market segments do not differ in size and potential.
a. True
b. False
The most popular source of information about government procurement is
____________.
a. FedBizOpps
b. Commerce Business Daily
c. NAICS
d. AFTA
___________ is a name, term, symbol, design, or combination thereof that identifies a
seller’s products and differentiates them from competitors’ products.
a. A brand
b. Positioning
c. A global brand
d. Brand equity
Often, secondary data sources give detailed information that would enable a researcher
to assess their quality or relevance.
a. True
b. False
Which of the following made several major changes in world trading practice?
a. The Uruguay Round
b. Mercosur
c. The North American Free Trade Agreement (NAFTA)
d. The International Monetary Fund (IMF)
If a product is modified by reducing its quality, the marketer’s likely intent is to:
a. provide new opportunities for market segmentation.
b. allow a manufacturer to lower the price of the product.
c. increase brand loyalty.
d. help firms cater more effectively to higher socioeconomic classes.
_____ is a confirmation of the quality or performance of a good or service.
a. A warranty
b. A package
c. Branding
d. Labeling
Caroline Perfumes is a premium, exotic women’s fragrance company. The
manufacturers of Caroline Perfumes want to establish its products as specialty products.
In this case, which of the following would be an objective of the manufacturers of
Caroline Perfumes?
a. To employ mass advertising strategies
b. To increase the distribution network
c. To focus on establishing a brand name
d. To decrease the prices of the products
Which of the following statements is true of prequalification systems?
a. They free sales representatives from the timeconsuming task of following up on leads
to determine need, buying power, and receptiveness.
b. They describe the “homework” that must be done by a salesperson before contacting
the prospect.
c. They use friends, business contacts, coworkers, acquaintances, and fellow members
in professional and civic organizations to identify potential clients.
d. They determine a customer’s specific needs and wants and the range of options the
customer has for satisfying them.
Which of the following is true of social media monitoring?
a. It can involve sentiment analysis and text mining specific key words.
b. It is an informal approach to know about the company or brand.
c. Failure to respond to criticism does not affect the brand image.
d. Comments that reveal unknown brand flaws rarely go viral.
Which statement best describes the value of shopping bots to consumers?
a. The broadbased bots search for prices for one type of product.
b. Shopping bots create opportunities for prestige pricing.
c. They theoretically give pricing power to a consumer.
d. Nicheoriented bots search a wide range of product categories.
A mobile telephone manufacturer markets a limited edition cell phone model with 126
different functions. The campaign failed across all 50 states in the United States. Which
of the following is the most likely reason?
a. The mobile simply wouldn’t offer any discernible benefit compared to existing
products.
b. There was a good match between product and customer desires to have a simple
phone.
c. The market size was overestimated and thus the manufacturer overproduced.
d. The price was little high and the initial distribution covered a small geographical
area.
Identify a statement that is true of status quo pricing.
a. It leads to optimal pricing of a product.
b. It requires serious planning and is difficult to implement.
c. It focuses on the demand for and the costs of a product.
d. It can lead to a pricing disaster.
_____ is an emerging retailing trend that employs market data to best serve customers
as they prepare to make a purchase.
a. Channel omnification
b. Clickandcollect
c. Shopper marketing
d. Cloud computing
A product bought to satisfy an individual’s personal wants or needs is a ________
product.
a. retail
b. business
c. consumer
d. distributor
Owned media is also called content marketing.
a. True
b. False
A target market is a group of people or organizations for which an organization designs,
implements, and maintains a marketing mix intended to meet the needs of that group,
resulting in mutually satisfying exchanges.
a. True
b. False
Dumping may result from all of the following exporter business strategies EXCEPT:
a. trying to increase an overseas market share.
b. temporarily distributing products in overseas markets to offset slack demand in the
home market.
c. increasing unit costs by exploiting largescale production.
d. attempting to maintain stable prices during periods of exchange rate fluctuations.
Which is a characteristic of fads?
a. They can move through the entire cycle in weeks.
b. They typically register a gradual and unpredictable spike in sales.
c. They peak slowly but then register a rather abrupt decline.
d. They stay in the maturity stage for decades.
When considering the social factors that affect marketing, people with component
lifestyles are:
a. becoming nondiscriminating and undemanding.
b. choosing products that meet their diverse needs.
c. reducing the complexity of their buying behavior.
d. beginning to prefer products that meet traditional needs and interests.
Captive brands allow the retailer to ask a price similar or equal to manufacturers’
brands, and the retailer typically displays captive brands alongside mainstream
products.
a. True
b. False
Whenever a particular fashion house brings out a new product line, it publicly launches
the products in a grand social event, invites society’s who’s who, and lavishly displays
its new products. What term best describes this type of consumer involvement?
a. Social visibility
b. Interest product involvement
c. Previous experience
d. Situational involvement
Unlike people who belong to Generation X, Baby Boomers:
a. do not use social media or other technologies to buy products.
b. tend to be influenced more by traditional advertising and wordofmouth
recommendations.
c. spend less on gifts, personal care products, medical care, food away from home, and
entertainment.
d. graduated from college during the Great Recession.
Which of the following is NOT true about an effective listening system?
a. Listening is the first action to take when initiating a social media campaign.
b. Although customers are on social media, they rarely think that a given brand is also
there.
c. Marketers must primarily hear what is being said about the brand and act upon what
they hear.
d. The ways customers rate, rank, critique, and praise a brand are important for
marketers.
The use of direct channels in business marketing has increased dramatically in the past
decade with the introduction of various Internet buying and selling schemes.
a. True
b. False
The Internet has always been the domain of the bluecollar workers and homemakers.
a. True
b. False
Which of the following acts outlaws discrimination in prices to different buyers;
prohibits tying contracts (which require the buyer of one product to also buy another
item in the line); and makes it illegal to combine two or more competing corporations
by pooling ownership of their stocks?
a. Clayton Act of 1914
b. Sherman Act of 1890
c. Federal Trade Commission Act of 1914
d. RobinsonPatman Act of 1936