As consumers devote little effort to convenience product purchase decisions, marketers
must strive to make these exchanges as simple as possible.
a. True
b. False
A present-day marketer is reviewing data attempting to differentiate a target group of
consumers that meets the four basic requirements of effective segmentation. One group
stands out above the rest, and he will direct his marketing efforts toward that group.
Toward what group will he direct his marketing efforts?
a. college graduates
b. minorities
c. women
d. pet owners
e. white males
You work on the assembly line at Ford Motor Company. Your line produces the hot
selling, Ford Focus hybrid. Your line creates _________ utility for Ford’s customers.
a. Product
b. Form
c. Value
d. Place
e. Ownership
Owen buys a car for himself. Owen has created ownership utility.
a. True
b. False
Consumers rely on communities created by social media for their buying decisions
mainly to:
a. gather relevant information about the functional strategies of companies.
b. gather relevant insights about the fluctuation in stock prices.
c. conduct research and share information.
d. build partnerships with companies.
New sales personnel often find prospecting frustrating because it:
a. can only be accomplished during certain times of the year.
b. can be done in a variety of ways.
c. is subject to a number of laws and regulations.
d. usually offers no immediate payback.
Dave Carroll a musician and song writer was traveling on United Airlines with his
Taylor guitar and when he arrived at his destination he found that his guitar had been
damaged. After multiple attempts to receive financial compensation from United for his
guitar, Dave used Twitter and YouTube to share a song he wrote called “United Breaks
Guitars”. Within 1 week of posting, the video had been viewed over 3 million times and
mainstream media such as CNN, CBS and The Wall Street Journal interviewed Dave.
The generation of 3 million views within a week and further exposure through other
media options is an example of which feature of social media marketing?
a. create a buzz
b. create a mechanism for consumers to engage in conversations with each other and the
organization
c. enables customers to promote the firms message themselves
d. creates a positive public image for the organization
A(n) _____ occurs when buyers outnumber sellers or product supply.
a. utility
b. buzz marketing
c. exchange process
d. seller’s market
e. buyer’s market
f. marketing myopia
g. social responsibility
h. relationship marketing
i. person marketing
j. place marketing
k. event marketing
l. organization marketing
m. interactive marketing
n. lifetime value of a customer
o. social marketing
p. onetoone marketing
q. strategic alliances
r. notforprofit organizations
s. ethics
t. mobile marketing
u. wholesalers
v. transactionbased marketing
You want to buy a fleet of company cars. Because this will be a high-involvement
purchase, you are likely to:
a. Spend time reading online reviews of different cars
b. Spend time talking to industry colleagues who have bought company cars
c. Skip steps in the consumer decision process
d. Spend time at every step of the consumer decision process
Products with unique characteristics that cause buyers to prize those particular brands
are called _____.
a. marketing mix
b. specialty products
c. product
d. services
e. convenience products
f. impulse goods
g. installations
h. wholesalers
i. business-to-business (B2B)
j. supplies
k. emergency goods
l. shopping products
m. component parts and materials
n. staples
o. product mix
p. product line
q. line extension
r. total quality management
s. product lifecycle
t. benchmarking
When buyers refuse to pay a product’s stated price or when improvements in other
items or fashion changes reduce the appeal of the current merchandise, a retailer must
take a _____.
a. slotting allowance
b. switching fee
c. rebate
d. markdown
Competitive bidding is more common in the business sector compared to consumer
markets.
a. True
b. False
Direct communications, other than personal sales contacts, between buyer and seller,
designed to generate sales, information requests, or store or website visits is referred to
as direct marketing.
a. True
b. False
Marketers typically shun blogs that focus on newtechnology products, because they
require technological authenticity to generate positive marketing outcomes.
a. True
b. False
A salary is a payment tied directly to the sales or profits that a salesperson generates.
a. True
b. False
Advertising attempts to condition consumers to adopt favorable viewpoints toward a
promotional message.
a. True
b. False
In a cluster sample, each cluster reflects the diversity of the whole population sampled.
a. True
b. False
Focus groups elicit information from the customers through a question-and-answer
format.
a. True
b. False
Which of the following is a major disadvantage associated with the skimming pricing
strategy?
a. It is not effective for higher-end goods.
b. It is not effective in recovering the high research and development costs.
c. It attracts competition as potential competitors enter into the market observing the
high financial returns obtained by innovative firms.
d. It leads to fulfillment problems if the demand for the product outstrips the firm’s
production capacity.
A _____ sample is a nonprobability sample divided to maintain the proportion of
certain characteristics among different segments or groups seen in the population as a
whole.
a. simple random
b. cluster
c. quota
d. convenience
In the context of the business products classification system, which of the following
group of products is typically promoted through advertisements rather than through
personal selling?
a. Installations
b. Accessory equipments
c. Component parts and materials
d. Raw materials
The Federal Trade Commission Act is a law that:
a. prohibits copying or downloading of digital files.
b. facilitates trade by removing tariffs and other trade barriers.
c. prohibits unfair methods of competition.
d. restricts practices such as exclusive dealing, tying contracts, and interlocking boards
of directors.
Which of the following methods of creating a promotional budget allocates a
predetermined amount to each sales or production unit?
a. The fixed-sum-per-unit method
b. The meeting competition method
c. The percentage-of-sales method
d. The task-objective method
Selective distribution helps marketers reduce total marketing costs while establishing
strong working relationships within the channel.
a. True
b. False
Your company is branching out into the developing world for the first time. You know
that it could be challenging to use the firm’s mail surveys in these countries. Among the
relevant challenges, developing countries are commonly known to have:
a. Poorly trained translators.
b. Low literacy rates.
c. Fluctuating postage.
d. Unreliable mail service.
e. Poor telecommunications infrastructure.
Tariffs make it possible for firms to protect their local markets while still setting prices
on domestically produced goods well above world market levels.
a. True
b. False
In the case of shopping products, a store’s name and reputation have considerable
influence on people’s buying behavior.
a. True
b. False
Noah Bennett works for a technology company and is responsible for creating the
content of the social media marketing campaign. He also informs the public about
topics such as product releases. Noah is a social media developer.
a. True
b. False
A person who controls the information that all members of a buying center will review
is referred to as a(n) _____.
a. merchandisers
b. trade industries
c. remanufacturing
d. nearshoring
e. end-use application segmentation
f. global sourcing
g. joint demand
h. inelastic demand
i. outsourcing
j. value analysis
k. gatekeeper
l. commercial market
m. reciprocity
n. vendor analysis
o. category advisor
p. modified rebuy
q. demographic characteristics based segmentation
r. influencers
s. buyer
t. customer-based segmentation
Interpretative research is often used to interpret consumer behavior within a foreign
culture where consumer expectations are subject to different cultural influences.
a. True
b. False
A low price is a sure sell because the demand for many goods is highly elastic.
a. True
b. False
Vending machines are an example of:
a. automatic merchandising.
b. Internet retailing.
c. telemarketing.
d. direct selling.