The number of intermediaries through which a manufacturer distributes its goods in a
particular market is referred to as _____.
a. distribution probability
b. distribution inertia
c. distribution intensity
d. distribution utility
Marc is a wholesaling intermediary who brings buyers and sellers together, sometimes
representing buyers and sometimes representing sellers, but never both in the same
transaction. This information indicates that Marc is a commission merchant.
a. True
b. False
Cannibalization is the loss of sales of an existing product due to competition from a
new product introduced into the market by a competing firm.
a. True
b. False
A marketing effort sponsored by an organization that solicits responses from individuals
who share common interests and activities is called _____ marketing.
a. frequency
b. affinity
c. internal
d. inclusive
Simple Foods, a breakfast cereal brand, has two wholesalers supplying to almost 100
retailers in California. Conflicts arising between the retailers and wholesalers within
California will be referred to as horizontal conflicts.
a. True
b. False
Richard generally frequented Brewz, a coffeehouse chain, when he was in Florida.
However, when his company transferred him to China, he found that the Brewz in
Shanghai does not offer the same quality service as their coffee houses in Florida.
Which of the following best explains this differential perception in service quality?
a. Companies cannot easily standardize services.
b. Buyers often play important roles in the creation and distribution of services.
c. Services are perishable and intangible.
d. Providers cannot make inventories of their services.
Which of the following is true of generic products?
a. They are identified through a brand name owned by a wholesaler or retailer.
b. They are identified through a brand name owned by a manufacturer or other
producer.
c. They are well known national brands sold exclusively through a joint venture
between a manufacturer and a retailer.
d. They are characterized by plain labels, little or no advertising, and no brand names.
Effective relationship marketing often involves:
a. inside information about competitors that is not in the public domain.
b. databases to track customer preferences.
c. large advertising budgets aimed solely at endusers.
d. internal sources of performancerelated data.
Firms using a competitive pricing strategy try to reduce the emphasis on price
competition by matching other firms’ prices and concentrating their own marketing
efforts on the product, distribution, and promotion elements of the marketing mix.
a. True
b. False
In the context of financial statements, which of the following represents the systematic
reduction over time in the value of certain company assets?
a. Depreciation
b. Attrition
c. Recession
d. Deduction
Rising in popularity during the 1990s, power centers offered value because they
underpriced department stores while providing a huge selection of specialty
merchandise.
a. True
b. False
Customer satisfaction can be measured in terms of the gaps between what customers
expect and what they perceive they have received.
a. True
b. False
Firms may also choose to introduce new products into markets in which they have
already established positions to try to increase overall market share. These new
offerings are called _____ brands.
a. universal
b. flanker
c. conjoint
d. congruous
Which of the following consumer problem-solving behaviors requires the least effort?
a. Extended problem solving
b. Limited problem solving
c. Routinized response behavior
d. Variety seeking buying behavior
According to the VALS framework, achievement-motivated consumers are influenced
by:
a. symbols of success.
b. energy levels.
c. adventure travel.
d. fun seekers
Sampling is the process of selecting survey respondents or research participants.
a. True
b. False
When a massive fuel hike affected the expenses of users of Cadmia significantly, Flare
Inc. introduced automobiles that run on solar energy. The introduction of such
automobiles indicates that Flare Inc.:
a. switched over to less sustainable fuels.
b. recognized its competitive constraints.
c. applied a secondmover advantage.
d. made the best of a strategic window.
Scrambled merchandising is a retailing practice of:
a. offering similar merchandise across multiple retail outlets at the same price.
b. providing different hours of operation at different outlets.
c. combining dissimilar product lines to boost sales volume.
d. offering similar merchandise at different prices at different outlets.
After studying the success of direct marketers like Amway and Tupperware, you’ve
decided to build a skin care business based on this nonstore retailing approach. Choose
the direct marketing tools you could use.
a. Direct mail
b. Telemarketing
c. Mail-order catalogs
d. Personal salespeople in cosmetics stores
e. Direct shopping via cable TV
According to relationship marketing, the lifetime value of a customer should exceed the
investment made by the firm to attract and keep the customer.
a. True
b. False
The assortment of product lines and individual product offerings that a company sells is
known as its product cluster.
a. True
b. False
Who among the following is an agent who predominates in the markets for agricultural
products?
a. A drop shipper
b. A mass merchandiser
c. A manufacturer’s agent
d. A commission merchant
Be Wise is an insurance firm that helps people save money for retirement and health
purposes. It markets its health and life insurance products with a tag line “save for
future.” Be Wise is trying to address which of the following needs in the Maslow’s
hierarchy of needs?
a. Esteem needs
b. Safety needs
c. Physiological needs
d. Social needs
There are six phases in the new product development process. All of these phases would
benefit from planning and scheduling tools like PERT (Program Evaluation and Review
Technique) or CPM (Critical Path Method), except:
a. Idea Generation
b. Screening
c. Business Analysis
d. Commercialization
e. None of the above. These tools would be helpful in all of the phases.
In addition to agricultural products and manufactured goods, the United States is also
the world’s largest exporter of:
a. computers and its accessories.
b. crude oil.
c. consumer electronics.
d. retailing.
_____are those born between 1946 and 1964 and are a popular segment to target
because of their numbers and income levels.
a. Baby Boomers
b. Generation X
c. Generation Y
d. Tweens
The process by which new goods or services are accepted in the marketplace is known
as the _____ process.
a. extension
b. referencing
c. diffusion
d. polarization
A simple and inexpensive way for first-time exporters to reach foreign customers is to
sell their products to an export trading company.
a. True
b. False
The Hispanic American population is not a single homogeneous group, but a composite
of a number of culturally distinct groups.
a. True
b. False
Which of the following is a method of testing alternate ads by dividing a cable TV
audience or a publication’s subscribers in two, using two different ads, and then
evaluating the relative effectiveness of each?
a. Zapping
b. Split run
c. Crowdsourcing
d. Unaided recall test
Internet retailing, vending machines, and telemarketing are examples of _____.
What are the major weaknesses of traditional breakeven analysis?
Define SWOT analysis and explain its importance.
Describe the process of relationship building in marketing.
How do social media marketers determine the target audience for a marketing
campaign?
Explain the AIDA concept.
What is a strategic window? Give an example of a strategic window that exists today.
Explain the two most common cost-oriented pricing procedures: full-cost and
incremental-cost.
Explain with the help of an example how violation of privacy laws and guidelines could
destroy a company’s reputation.
Discuss the steps involved in the new product development process.
List out the characteristics of product innovation that influence its adoption rate.
Define direct channel and direct selling. Describe the party plan as a direct selling
strategy. Give an example of a firm that sells its products using the party plan.
Define line extension. Give examples
Describe the three organizational buying situations. How do they correlate to the
purchasing decisions of consumers?
Discuss the pricing strategies used by retailers to attract consumers.
Discuss the role of merchandisers and category advisors in the business buying process.
Give examples.