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The demographic environment is of major interest to marketers because it involves
people, and people make up markets.
If Audi develops a new low-priced model for entry-level consumers in Europe, it would
be an example of straight product extension.
The aim of the entire value delivery network is to serve target customers and create
strong relationships with them.
Global organizations don't think of themselves as national marketers that sell
internationally, but as global marketers.
Healthy Veggies, LLC, believes that marketing is a tool to use in finding customers and
keeping them by providing vegetables that are grown using chemical-free farming
techniques and selling through small family-owned stores. Healthy Veggies, LLC,
practices societal marketing.
Less-for-much-less positioning involves meeting consumers' lower performance or
quality requirements at a much lower price.
Product costs set the ceiling for prices.
Buzz marketing involves cultivating opinion leaders and getting them to spread
information about a product or service to others in their communities.
Direct and digital marketing involve targeting broad segments of customers.
All business buying decisions follow all steps of the business buying process.
When a company chooses what principle to follow on issues of ethics and social
responsibility, there are two common philosophies to use as guides: let the free market
and legal system decide or let individual managers and companies choose.
Kia Motors offers a new car model with the same features as other cars in the same
segment. However, Kia's model is priced higher than its two main competitors. Kia is
following a more-for-less positioning strategy.
Viral marketing allows marketers to send tailored messages to targeted customers who
have chosen to receive them.
Reverse logistics refers to the moving of products and materials from suppliers to the
factory.
The "bottom of the economic pyramid" has become an attractive target for many
companies.
In contrast to distribution centers, storage warehouses are designed to move goods
rather than just house them.
The adoption process for new products refers to the mental process through which an
individual passes from first learning about an innovation to final adoption.
A product position is the way a product is defined by consumers on important attributes.
Using the PLC concept to develop marketing strategy can be problematic because
strategy is both a cause and a result of the product's life cycle.
Millennials represent a larger demographic segment than the baby boomers or Gen
Xers.
If used infrequently, price promotions create "deal-prone" customers who wait until
brands go on sale before buying them.
"Destroying" a close competitor can actually damage a company's market share in the
long run.
In a service business, the customer and the front-line service employee interact to
co-create the service.
With outbound telephone marketing, the company provides a toll-free phone number to
receive orders from television ads, print ads, direct mail, and catalogs.
An experience such as a vacation can be defined as a market offering.
Companies frequently try to offer the highest possible performance quality level.
To succeed in today's competitive marketplace, companies must be product-centered.
Companies can allow their suppliers access to online sites on which the company posts
its buying needs, requests bids, negotiates terms, and places orders, thus minimizing
research steps and costs.
Neuromarketing involves measuring brain activity to learn how consumers feel and
respond.
The biggest involvement in a foreign market comes through exporting—entering
foreign markets by selling goods produced in the company's home country.
Decoding is the process by which a sender puts his or her thoughts into a symbolic
form.
Business demand ultimately derives from the demand for consumer goods.
The starting point of understanding how consumers respond to various marketing
efforts is called the stimulus-response model of buyer behavior.
The Internet is making global price differences more obvious, forcing companies
toward more standardized international pricing.
Commercial sources of information typically legitimize and evaluate products for
buyers.
Sustainable marketing requires a smooth-functioning marketing system in which
consumers, companies, public policy makers, and others work together to ensure
socially and environmentally responsible marketing actions.
All of the following are ways a company can differentiate itself or its product EXCEPT
________.
A) services
B) channels
C) price
D) people
E) image
________ includes sales presentations, trade shows, and incentive programs.
A) Direct and digital marketing
B) Sales promotion
C) Personal selling
D) Public relations
E) Advertising
Which term best describes sites such as the New York Times on the Web and
ESPN.com?
A) search engine
B) content site
C) online social network
D) transaction site
E) e-tailer
Neutron Inc. is conducting a business analysis to determine which of the many newly
developed apps should be released. To estimate sales, the company must ________.
A) conduct surveys of competitors
B) exclusively consider the government's opinions
C) consider the sales history of similar products
D) apply the PLC concept to industry sales
E) opt for business process reengineering
Which of the following is true of price skimming?
A) It is effective in situations in which competitors are able to undercut prices easily.
B) It can be profitably used when the product's quality and image support its price.
C) It involves underpricing products so that companies make larger sales.
D) It is ineffective in situations in which competitors are unable to enter the market
easily.
E) It leads to a situation in which the company completes more, though less profitable,
sales.
The decision-making unit of a purchasing organization is called its ________.
A) value chain
B) buying center
C) customer support system
D) quality center
E) innovation center
The BeautyShop, a manufacturer of skin care products, uses only plant-based materials
for its cosmetic products. It supports several environmental protection movements and
movements defending human rights. This accounts for the company's efforts to build
good will and corporate social responsibility. This exemplifies the ________ concept.
A) consumer business
B) strategic planning
C) consumerism
D) direct marketing
E) sustainable marketing
Dora has formal authority to select the suppliers and arrange terms of purchase for
many of the items her firm uses. Her role in the buying center is that of a(n) ________.
A) user
B) influencer
C) buyer
D) decider
E) gatekeeper
Which of the following best explains why public relations is often overlooked as a tool
for supporting product marketing objectives?
A) Public relations departments are typically large divisions within corporations.
B) The time and costs associated with public relations prohibit its extensive use.
C) Public relations specialists lack the skills necessary to work with marketing experts.
D) Many public relations professionals see their jobs as communicating, not brand
building.
E) The public relations department handles stockholders and legislators but not
employees.
Which of the following would most likely lead to a company initiating a price increase?
A) weakened economy
B) possession of outdated merchandise
C) excess capacity
D) over-demand
E) possession of defective merchandise
In industries in which pricing is a key factor, ________ often set the best prices or help
others in setting them.
A) sales departments
B) salespeople
C) production managers
D) line managers
E) pricing departments
Which of the following is the most logical budget-setting method?
A) percentage-of-sales method
B) affordable method
C) competitive-parity method
D) objective-and-task method
E) push method
Jolene's firm markets preplanning services for a mortician. She finds that most of her
target market avoids discussing future funeral needs. She convinces people to invest in
the firm's services through her large-scale promotional efforts. Jolene's firm most likely
practices the ________.
A) production concept
B) marketing concept
C) selling concept
D) product concept
E) societal marketing concept
Which of the following conditions would enable higher market share to produce higher
profits?
A) when unit costs drop as market share increases
B) when unit costs increase as market share increases
C) when production volume drops as market share increases
D) when production volume remains unaltered as market share increases
E) when the company fails to break even
Which of the following is NOT a criterion a company will use to evaluate the major
channel alternatives?
A) adaptability
B) control
C) commitment
D) sales and costs
E) likability
Currently, in the United States, job growth is the strongest for ________.
A) blue collar workers
B) manufacturing workers
C) professional workers
D) construction workers
E) sanitation workers
The market subsegment that a company exclusively caters to may dry up, or it might
grow to the point that it attracts larger competitors. This is why such companies practice
________.
A) multiple niching
B) mass marketing
C) overall cost leadership
D) low-price strategies
E) dumping
Which of the following promotion tools involves building up a good corporate image
and handling unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct and digital marketing
D) public relations
E) advertising
If a task is new, complex and costly, on which stage of the buying process will the
buyer spend a greater amount of time?
A) preparing a general needs description
B) deciding on product specification
C) conducting a supplier search
D) preparing an order-routing specification
E) reviewing suppliers' performance
Phoi Nguyen, a manufacturing mechanic, determines that the molds for manufacturing
plastic jar lids are wearing out sooner than expected. Phoi contacts her manager to
request that the parts be reordered. In this instance, Phoi played the role of a(n)
________.
A) user
B) buyer
C) gatekeeper
D) influencer
E) decider
In which situation is the market dominated by one seller?
A) pure monopoly
B) monopolistic competition
C) oligopolistic competition
D) pure competition
E) free market
Hart's Department Store was accused of deceptive promotion. Which of the following
best explains what might have happened?
A) Hart's refused to advertise sale prices in the local paper.
B) Hart's advertised a bargain price on an out-of-stock product.
C) Hart's advertised a large price reduction from a phony high retail list price.
D) Hart's used misleading labeling on certain products.
E) Hart's exaggerated its package contents through subtle design.
Competitive parity and task methods are considered when making decisions about
________.
A) sales objectives
B) budget
C) message structure
D) media selection
E) message effectiveness
Alex Smith rents storage space to college students who go home for the summer but do
not want to haul all of their property home and back. The business is profitable during
the summer months, but when the storage space is unoccupied in the off-season, Alex
loses money. Which of the following characteristics of service is most likely the source
of Alex's problem?
A) intangibility
B) perishability
C) inconsistency
D) variability
E) inseparability
To plan effective marketing strategies, a company needs to find out all it can about its
competitors. It must constantly compare its marketing strategies, products, prices,
channels, and promotions with those of close competitors. This is an example of
________.
A) blue ocean strategy
B) competitor analysis
C) organizational evaluation
D) perfect competition
E) quantitative analysis
________ traditionally has been considered the main purchasing agent for the family in
the areas of food, household products, and clothing, although this is changing as more
work outside the home.
A) A teenager
B) The husband
C) The wife
D) The couple together
E) The parent
A(n) ________ is a limit on the amount of goods that an importing country will accept
in certain product categories.
A) embargo
B) tariff
C) benchmark
D) quota
E) exchange control
When the product differs greatly from those of competitors, ________.
A) advertising can make customers aware of the product
B) firms should advertise similarly to competitors, to remind consumers of the product
C) advertising can point out the differences to consumers
D) firms should advertise little as the uniqueness will not require education of
consumers
E) advertising can reaffirm a consumer's decision to purchase
In the ________, separate sales forces are set up for different industries.
A) territorial sales force structure
B) digital marketing system
C) customer sales force structure
D) geographical operations system
E) product sales force structure
Eric Brown is a human resource manager in a company selling and manufacturing
personal computers. Who among the following is Eric most likely to hire as a
salesperson if his objective is to minimize training costs post recruitment?
A) Samantha, a fresh college graduate
B) Richard, a product developer from a competing firm
C) Nancy, an experienced engineer with no prior experience in personal selling
D) Melissa, a proven salesperson from a competing firm
E) Henry, a young salesperson with a few months' experience in a large MNC
All of the following are Internet marketing concerns EXCEPT ________.
A) financial scams
B) access by vulnerable or unauthorized groups
C) phishing
D) identity theft
E) secure online and digital Web sites
________ logistics starts with the marketplace and works backward to the factory or
even to sources of supply.
A) Outbound
B) Customer-centered
C) Upstream
D) Reverse
E) Inbound
Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via
Star City stores. This is an example of a(n)________ distribution system.
A) conventional
B) inclusive
C) intensive
D) extensive
E) multichannel
________ include banks, credit companies, insurance companies, and other businesses
that help insure against the risks associated with the buying and selling of goods.
A) Financial intermediaries
B) Physical distribution firms
C) Resellers
D) Marketing services agencies
E) Wholesalers
Which of the following appeals is based on the idea that consumers often feel before
they think?
A) emotional appeal
B) rational appeal
C) structural appeal
D) standardized appeal
E) integrated appeal
What are the differences between innovators, early adopters, and early mainstream
adopters?
Explain power in a vertical marketing system.
Explain the role of marketers in the information search step of the buyer decision
process. Give an example of how the marketer might execute this role.
How is consumer-oriented marketing different from customer-value marketing?
Describe a strategic group. Name a few companies that belong to the same strategic
group, and discuss why they are in the same group.
Why is the use of direct-response television growing in popularity?
Many subcultures make up important market segments. Examples of three such
important subculture groups include Hispanic Americans, African Americans, and Asian
Americans. Describe the general shopping-related characteristics of each of these
groups.
Provide two reasons why companies are shifting more of their marketing dollars to
online advertising.
People's distinct individual personalities influence their buying behavior. Personality is
usually described in terms of traits. What are these traits, and how do they affect the
way people purchase items? Give at least one example.
Briefly describe competitive advantage.
Discuss the functions and goals of a competitive intelligence system.
Discuss the major influences on business buyers.
Although many retail stores are independently owned, others band together under some
form of corporate or contractual organization. Describe the four kinds of corporate or
contractual organizations.
Describe the three types of appeals that marketers use.
How can discount stores sell merchandise at lower prices?
