When a consumer purchases an item that she previously bought and found acceptable, it
would be considered an example of _____________.
a. modified rebuying
b. straight rebuying
c. new-task buying
d. reciprocity
e. vendor analysis
New-task buying situations require considerable effort by the decision makers.
a. True
b. False
According to the Uniform Commercial Code, puffery is a quantifiable statement about
product quality or performance that constitutes an “express warranty,” which obligates
the company to stand behind its claim.
a. True
b. False
Bill wants to use VALS to segment the market for his firm’s costly but cutting-edge
gaming software. He knows that his potential customers are likely to be:
a. Survivors
b. Gamers
c. Innovators
d. Techies
e. Millennials
The global pricing strategy that allows the greatest flexibility in setting prices to reflect
local marketplace conditions is:
a. standard worldwide pricing.
b. dual pricing.
c. market-differentiated pricing.
d. everyday low pricing.
Outsourcing and offshoring have the potential to slow a company’s efforts in bringing
new products to market.
a. True
b. False
A _____ helps the marketers in conducting marketing research by performing all the
steps in the marketing research process.
a. limited service research supplier
b. customer relations managing firm
c. full-service research supplier
d. syndicated service
Productoriented rather than customeroriented management endangers the future growth
of an organization.
a. True
b. False
An export trading company provides the first-time exporter with expertise in locating
foreign buyers and ensuring that its goods meet local labeling and testing laws.
a. True
b. False
Marketers determine prices in two basic ways: by applying the theoretical concepts of
supply and demand and by completing cost-oriented analyses.
a. True
b. False
Palmer Inc. recently changed its promotional strategies for marketing the products. The
marketing team at Palmer has been asked to evaluate the target market and the
marketing mix elements to find ways to improve the effectiveness of the marketing
strategies. Since the firm already knows the purpose of its research, the next step in the
marketing research process is to:
a. create research design.
b. collect data.
c. formulate a hypothesis.
d. conduct exploratory research.
Marketers use key performance indicators to:
a. justify an increased marketing budget.
b. measure the success of a marketing initiative.
c. determine which marketing tasks should be outsourced.
d. create a social media campaign.
At present, no industry-wide standards define techniques for measuring Web use.
a. True
b. False
In which of the following nonprobability samples, the participants that are to be
included in the study are handpicked by the researchers?
a. Cluster sample
b. Quota Sample
c. Stratified sample
d. Simple random sample
Emily is an inside sales representative for TEKSystems and promises her customer
accounts that she will return phone calls or e-mails within three hours during week-day
work hours (9 a.m. to 5 p.m.). She says that sometimes it’s difficult to keep this promise
to her customers but believes its a key to her success and the loyalty she creates among
her customers. It’s also led to referrals and helped her increase sales. What aspect of
service quality is Emily delivering?
a. responsiveness
b. empathy
c. assurances
d. tangibles
Amy Lou works for a small business firm that specializes in the home furnishing design
business. Amy Lou is the head of the textiles department and coordinates with
twenty-five textile manufacturers around the world to ensure that her firm has the best
supplies on the market. Each quarter, Amy Lou meets with each of the manufacturers
and then brings back her top picks to share with the rest of her team at her company.
The company’s owner values Amy Lou’s opinions, especially since the company’s
profits have continually increased for ten years. This year; however, the company’s
overhead costs have increased, and Amy Lou and her team need to figure out why.
Required:
Which of the following can be said is a drawback of having Amy Lou serve in the role
described above?
a. Amy Lou controls all of the information about which types of textiles the firm should
purchase.
b. Amy Lou lacks formal authority when it comes to making decisions about the
company’s budget.
c. Amy Lou is inexperienced and makes poor choices that impact the firm’s bottom line
negatively.
d. Amy Lou’s decision to work with international buying centers has led to an increase
in the firm’s overhead costs.
e. Amy Lou has to surrender her power to more influential team members when it
comes to making purchase decisions.
Depreciation is an unusual expense because it does not involve an actual cash expense.
a. True
b. False
_____ refers to a first-time or unique purchase situation that requires considerable effort
by decision makers.
a. Straight rebuying
b. New-task buying
c. Primary buying
d. Modified rebuying
Relatively standardized items that are also nonperishable and products with low unit
costs pass through comparatively long channels of distribution.
a. True
b. False
A schedule of the amounts of a firm’s product that consumers will purchase at different
prices during a specified time period is called _____.
a. breakeven analysis
b. tariffs
c. unfair-trade laws
d. incremental-cost pricing
e. profit maximization
f. demand
g. value pricing
h. monopoly
i. elasticity
j. marginal
k. fair-trade laws
l. yield management
m. oligopoly
n. cost-plus pricing
o. full-cost pricing
p. supply
q. marginal analysis
r. target-return objectives
s. market-share objectives
t. pure competition
Brands which are seeking to be associated with prestige and exclusivity often set higher
prices.
a. True
b. False
The Internet allows retailers and vendors to exchange vital information, improving the
overall functioning of supply and distribution.
a. True
b. False
A limited-line retail store that offers huge selections and low prices in single product
lines is known as a(n) _____.
a. stock-keeping unit (SKU)
b. markup
c. markdown
d. retail convergence
e. scrambled merchandising
f. atmospherics
g. broker
h. general merchandise retailer
i. category killer
j. rack jobber
k. supercenter
l. auction house
m. specialty store
n. retailers
o. mass merchandiser
p. truck jobber
q. direct marketing
r. drop shipper
s. planned shopping center
t. wheel of retailing
The _____ is a companywide consumer orientation with the objective of achieving
longrun success.
a. marketing myopia
b. exchange process
c. marketing concept
d. seller’s market
A company has recently instituted a political risk assessment (PRA) unit that keeps
track of situations of international unrest. Which advantage does the new PRA unit
offer?
a. The PRA pays attention to international events through following social media.
b. The PRA checks the legal situation to see whether charges can be filed against
vandals.
c. The PRA collects statistics about the frequency and severity of ongoing events.
d. The PRA evaluates the specific risks to the company’s employees and facilities.
e. The PRA promotes peaceful interventions so that business processes are not
interrupted.
In which of the following market structures the entry of new firms into the industry is
regulated by the government?
a. Pure competition
b. Monopolistic competition
c. Oligopoly
d. Monopoly
An estimate of a firm’s revenue for a specified future period is known as a _____.
a. revenue cluster
b. market cap
c. sales forecast
d. sales boundary
The process of qualifying a sales prospect involves:
a. gathering information about the prospect to make initial contact go more smoothly.
b. determining a potential customer’s needs, income, and purchase authority.
c. defining the company’s product in terms of what it can do for the customer.
d. making the initial contact with the prospect.
A shortcoming of the breakeven model is that it assumes that per-unit variable costs
change at different levels of operation.
a. True
b. False
Most of the early Internet marketers failed because they did not consider basic
marketing principles such as targeting their customers and making sure to fulfill their
needs.
a. True
b. False
Companies use knowledge obtained from databases to track customer buying patterns
and to customize offerings and sales promotions.
a. True
b. False
A neighborhood shopping center consists of large stores featuring shopping goods,
professional offices, a branch bank, and also a movie theatre or a supermarket.
a. True
b. False
The customer service department of a vitamin and nutritional supplement company has
been receiving an increase in customer complaints since the company changed the
shipping and handling charges to be the same amount for every order. Which delivery
pricing method is this company using?
a. zone
b. basing point
c. free on board
d. uniform delivered
e. cumulative quantity
The process of anticipating future events and conditions and determining the best way
to achieve organizational objectives is known as:
a. retrospecting.
b. planning.
c. archiving.
d. correlating.