Which of the following occurs when a customer and a company representative
exchange information and develop learning relationships?
a. Transactional selling
b. An intervention
c. Customer profiling
d. An interaction
Which of the following strategies will help service organizations overcome the
perishability of services?
a. Increase the credence qualities of services.
b. Provide training to employees.
c. Improve the standard of services.
d. Find ways to synchronize supply and demand.
A _____ is the originator of a trade name, product, methods of operation, and the like
that grants operating rights to another party to sell its product.
a. broker
b. franchisor
c. consumer
d. wholesaler
A process of finding out about potential clients from friends, business contacts,
coworkers, acquaintances, and fellow members in professional and civic organizations
is called _____________.
a. referrals
b. networking
c. cold calling
d. lead qualification
With regards to the communication process, which term refers to the conversion of a
sender’s ideas and thoughts into a message, usually in the form of words or signs?
a. Encoding
b. Decoding
c. Media channel
d. Interpersonal communication
NAICS codes can help identify firms that may be prospective users of a supplier’s
goods and services and the more identical digits in sequence in a code, the more
homogeneous the group.
a. True
b. False
In a freepress environment, publicity is easily controlled, especially in a crisis.
a. True
b. False
Which of the following refers to the practice of marking up prices by 100 percent, or
doubling the cost?
a. Keystoning
b. Markup pricing
c. Breakeven pricing
d. Price matching
____________ is a type of survey that usually involves interviewing business people at
their offices concerning industrial products or services.
a. An executive interview
b. A mall intercept interview
c. A computerassisted selfinterviewing
d. A computerassisted personal interviewing
In the case of SBUs that are cash cows, problem children, or dogs, the basic goal of
_______________ is to increase shortterm cash return without increased concern for
longrun impact.
a. building
b. holding
c. harvesting
d. divesting
Unlike goods, services are
a. produced in a centralized location and consumed in decentralized locations.
b. tangible performances.
c. stored, warehoused, and inventoried.
d. more heterogeneous and less standardized and uniform.
The purpose of market segmentation is to:
a. change consumer attitudes and beliefs toward a product.
b. divide a market into submarkets of equal size and equal number of customers.
c. eliminate the need for developing marketing objectives.
d. enable a marketer to tailor marketing mixes to meet the needs of one or more specific
segments.
Which executional style for advertising depicts people in normal settings, such as at the
dinner table or in a car?
a. Sliceoflife
b. Lifestyle
c. Mood or image
d. Fantasy
The final step in market segmentation is selecting segmentation descriptors.
a. True
b. False
Leo buys 5 million sheets of paper from a vendor for his printing firm. He is satisfied
with the product, and he orders the same quantity from the same vendor every week.
This is most likely an example of a(n) _____.
a. initial buy
b. straight rebuy
c. new buy
d. modified rebuy
Many companies offer ethics training to employees and have codes of ethics that help
guide buyers and sellers in business.
a. True
b. False
A salesoriented firm targets its products at everybody, while a marketoriented
organization aims at selling its products to a specific customer group.
a. True
b. False
According to Ansoff’s strategic opportunity matrix, a firm using the market penetration
alternative would try to:
a. increase market share among existing customers.
b. attract new customers to existing products.
c. create new products for present markets.
d. introduce new products into new markets.
Which of the following is NOT true of sales force compensation?
a. Compensation needs to be competitive enough to attract and motivate the best
salespeople.
b. Companies and industries with lower levels of compensation have lower turnover
rates.
c. Recognition and rewards may help increase overall sales volume.
d. Sales managers often offer rewards or incentives to motivate their sales force.
When selecting strategies for targeting markets, which of the following is a
disadvantage of an undifferentiated targeting strategy?
a. It results in market segments that are either too small or that shrink because of
environmental changes.
b. It often results in sterile, unimaginative product offerings that have little appeal to
anyone.
c. It results in cannibalization of products.
d. It increases the production and marketing costs of a firm.
Which of the following statements is true of buyers in consumer markets versus buyers
in business markets?
a. Buyers in consumer markets tend to be insensitive to price, while buyers in business
markets are very particular about price.
b. Buyer demand for consumer products in consumer markets is less stable than buyer
demand for business products in business markets.
c. Buyers in consumer markets approach purchasing more informally, while buyers in
business markets approach purchasing more formally.
d. Buyers in consumer markets involve more people in a single purchase decision,
while buyers in business markets involve less people in a single purchase decision.
Neuromarketing is a fresh attempt to better understand consumers’ responses to
promotion and purchase motivations.
a. True
b. False
Which of the following refers to altering a basic product to meet local conditions?
a. Product invention
b. Promotion adaptation
c. Product adaptation
d. Global marketing standardization
Which of the following statements is true of a target market?
a. Uncontrollable elements continually evolve and create changes in a target market.
b. Managers can control the external environment that molds and reshapes a target
market.
c. Environmental scanning is performed by firms in order to prevent changes in a target
market.
d. Unlike uncontrollable variables, controllable variables do not affect a target market.
According to Ansoff’s strategic opportunity matrix, unlike market development,
product development:
a. focuses on attracting present customers to existing products.
b. involves creating new products for present markets.
c. involves entering new markets as competitors.
d. focuses on using existing assets to provide added convenience to existing customers.
Which of the following statements is true of a proper promotional mix?
a. It does not use advertising.
b. It entails indirect, oneway communication.
c. It works for all products of a company.
d. It meets the needs of a target market.
The difficulty of making profit from applied research discoveries has led businesses to
cut their spending on applied research.
a. True
b. False
Which of the following roles of marketing research is concerned with gathering and
presenting factual statements?
a. Descriptive
b. Diagnostic
c. Predictive
d. Both options a and b are correct.
Starlight Jewelry sends Lauren a birthday card along with a pendant as a token of
appreciation for shopping frequently at its store. This trend in customer relationship
management aims at cultivating its customers by _____.
a. acknowledging their loyalty
b. implementing technology
c. providing time savings
d. offering standardization
Which of the following is true of Internet auctions?
a. Businesstobusiness auctions are likely to fade away in the future.
b. The seller in a reverse auction sells his products or services to the highest bidder.
c. The eBay site is the most popular auction site, with more than 100 million buyers and
sellers.
d. Consumers do not trust Internet auctions and how they work.
Which of the following best describes a continuous media schedule?
a. One that runs advertising heavily every other month or every two weeks to achieve a
greater impact with an increased frequency and reach at those times
b. A media schedule that runs regular scheduling throughout the year coupled with a
flighted schedule during the best sales periods
c. One that runs advertising steadily throughout the advertising period and is often used
for products in the later stages of the product life cycle
d. A media schedule that runs advertisementsintensively during times of the year when
the product is most likely to be used
Which term refers to a comparison of income versus the relative cost of a standard set
of goods and services in different geographic areas?
a. Purchasing power
b. Inflation
c. Recession
d. Personal income
Generally speaking, personal selling often works better than other forms of promotion if
a. the number of potential customers increases.
b. the complexity of the product increases.
c. the value of the product decreases.
d. the role of social media increases.