You are in the process of starting your own business, a specialty cupcake store. From
your study of marketing, you realize that many of your business decisions, such as
where to open the store and how to advertise it, will depend on the segment of the
population you want to attract as customers for your product. You start looking at data
about the types of stores in different parts of the town and the demographics of the
individuals in different neighborhoods. What are you doing in this process?
a. engaging in category management
b. creating a promotional strategy
c. selecting a target market
d. analyzing the wheel of retailing
e. marketing to the environment
Most of the specialty stores are chain outlets with large-scale operations.
a. True
b. False
In order to receive quantity discounts on needed purchases, many institutions:
a. tend to hoard products which are resold at lower prices.
b. insist on equal treatment under the Robinson-Patman Act.
c. join cooperative associations to pool purchases.
d. implement customer relationship management.
Sales of your frozen yogurt are down, so you’ve started a research project aimed at
answering the question, “How can we improve the effectiveness of our advertising?”
You’ve also conducted informal interviews with customers, suppliers, and retailers.
Which steps in the research process have not yet been tackled?
a. Conduct exploratory research
b. Define the problem
c. Formulate a hypothesis
d. Create a research design
e. Mine data
Title Nine is a specialty retailer targeting active women with a proprietary mix of
apparel designed for active lifestyles and sports. The company began as a direct
marketer – using only catalogs and its website to generate sales. However, over the
years, Title Nine has opened retail outlets across the country. The company identifies
strategic opportunities for new stores based upon the sales generated by current
customers in the potential market area. For example, if Title Nine has a significant
number of purchasers in the Boston area, they will further analyze the market and select
a location for a retail outlet. What type of segmentation strategy is Title Nine utilizing
when selecting a market for a new store location?
a. geographic
b. demographic
c. lifestyle
d. benefit
A(n) _____ is a payment to a channel member or buyer for performing marketing
functions.
a. competitive bidding
b. penetration pricing strategy
c. list price
d. trade discount
e. price flexibility
f. promotional pricing
g. loss leader
h. cannibalization
i. bundle pricing
j. odd pricing
k. transfer price
l. profit center
m. skimming pricing strategy
n. competitive pricing strategy
o. pricing policy
p. market price
q. noncumulative quantity discount
r. step out
s. bot
t. cash discount
Which of the following is the most important reason for manufacturers to use sales
promotion?
a. To appeal to marketing intermediaries than final consumers
b. To offer extra incentives to customers to buy products
c. To overcome poor brand images and product deficiencies
d. To create awareness of their products among consumers
Marketing planning establishes the:
a. resource base provided by the firm’s strategy.
b. economic impact of additional sales.
c. daily and weekly schedules for individual employees.
d. basis for any marketing strategy.
Which of the following is true of customer relationship management systems?
a. Purchasing a CRM system allows a firm to expand and customize, whereas hosted
systems are more limited.
b. Customer relationship management systems tend to complicate simple business
processes.
c. They focus on decentralizing the marketing data.
d. They are more beneficial to the retailers compared to business firms in B2B markets.
You are eager to attract a tennis star to appear in the ads for your company’s rackets.
However, your boss reminds you that it can be very expensive to use celebrity
testimonials. Which of the following points do you make to convince her to spend the
money?
a. This approach can improve our racket’s brand recognition.
b. This approach can boost the believability of our racket’s performance.
c. With a well-known star, there is no risk of marketplace confusion.
d. With a well-known star, our brand can achieve better recall.
e. A tennis star is likely to be a credible source of information for our product.
Recently, a top economist to the Federal Reserve bank predicted that market conditions
would be favorable with low levels of inflation and low unemployment rates. Which of
the following might be a response by marketers to this economic forecast?
a. increasing promotional efforts
b. limiting new product offerings
c. reducing distribution
d. lower prices
The fluctuation in exchange rates results in:
a. a country employing additional tariffs and quotas on imports to manage fluctuations.
b. a nation’s currency becoming more or less valuable compared with those of other
nations.
c. the possibility of an economy reaching short-run equilibrium at levels below or above
full employment.
d. a relatively rapid economic growth and periods of relative stagnation or decline.
With the help of customer relationship management systems, businesses can segment
their customers in terms of the stage of the relationship between the business and the
customer.
a. True
b. False
Responding to the weakening of their control over prices brought about by e-commerce,
marketers have begun to bundle a host of additional goods and services with the
tangible products they offer their customers.
a. True
b. False
The baby boomer generation is most adept at learning and using rapidly changing
communications technology.
a. True
b. False
Which of the following is a condition that results when individual operations achieve
their objectives but interfere with progress toward broader organizational goals?
a. Optimism bias
b. Suboptimization
c. Framing problem
d. Horizontal conflict
Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company,
organization, person, geographic location, or government agency is called _____
advertising.
a. institutional
b. product
c. retail
d. cooperative
The Export Trading Company Act of 1982 seeks to make it easier for foreign buyers to
connect with U.S. exporters.
a. True
b. False
Institutional advertising is limited to advertising sponsored by a specific profit-seeking
group.
a. True
b. False
A strategy for going global through contractual agreements in which the production of
goods or services is assigned to local companies is termed as _____.
a. sole sourcing
b. a differentiation strategy
c. an offset strategy
d. subcontracting
_____ focuses on a company’s best customers with the goal of increasing their
motivation to buy even more of the same or other products from the seller by rewarding
them with cash, rebates, or other premiums.
a. strategic alliance
b. relationship marketing
c. cobranding
d. frequency marketing
e. value chain
f. database marketing
g. exponential smoothing
h. customer relationship management
i. trend analysis
j. internal customers
k. comarketing
l. quick-response merchandising
m. affinity program
n. lifetime value of a customer
o. Delphi technique
p. national account selling
q. transaction-based marketing
r. customer churn
s. buzz marketing
t. grassroots marketing
Well-known luxury retailers offer unique or prestigious products at price ranges slightly
lower than their premium brands to attract middle-class consumers aspiring to the upper
class.
a. True
b. False
A _____ is the amount by which the average transportation charge exceeds the actual
cost of shipping.
a. rebate
b. list price
c. phantom freight
d. transfer price
Licensing is advantageous compared to exporting as it provides access to local partner’s
distribution channels and also protection from legal barriers.
a. True
b. False
List out the different categories used by the U.S. government to classify urban data.
Give examples.
Observation is a useful technique to collect primary data for marketers trying to
understand how consumers behave in certain situations.
a. True
b. False
Brenda is shopping for mouth wash and is trying to compare prices of the popular
Listerine brand to the Walgreens brand. However, the sizes of the containers are
different. The Listerine brand is 48 ounces while the Walgreens brand is 74 ounces.
Fortunately, shelf tags under each product display the per-ounce price so that Brenda
can easily determine which product is less expensive. What type of pricing is included
on the shelf tag?
a. unit pricing
b. odd pricing
c. even pricing
d. penetration pricing
The basic breakeven model addresses the question of whether customers will actually
purchase the product at the specified price in the quantity required to break even or
make a profit.
a. True
b. False
The largest operating multinational economic community in the world is the FTAA,
linking 34 countries and 800 million people in the Western Hemisphere.
a. True
b. False
A(n) _____ is a quantifiable measurement, articulated in advance, that reflects an
organization’s goals and is critical to its success.
a. big data
b. exploratory research
c. secondary data
d. primary data
e. sampling
f. hypothesis
g. simple random sample
h. interpretative research
i. focus group
j. marketing decision support system
k. key performance indicator
l. predictive analytics
m. metrics
n. marketing research
o. quota sample
p. test marketing
q. cluster sample
r. data mining
s. convenience sample
t. controlled experiment
Grainger is a wholesaler who specializes in fasteners and tools for manufacturing and
commercial customers. They produce a large catalog of their products and business
customers may place orders by phone or via the Internet through their web store.
Customers enjoy the flexibility of shopping at their convenience and purchasing items
when they have a need rather than keeping their own inventory of these products.
Grainger is creating _____ utility for their customers.
a. time
b. place
c. possession
d. financial