The population group born between 1965 and 1978, who value education and
knowledge, and who tend to do significant research before making a major purchase is
known as:
a. Millennials.
b. Gen Xers.
c. tweens.
d. Baby Boomers.
In the context of business products, which of the following is a difference between
major equipment and accessory equipment?
a. Major equipment is often standardized, whereas accessory equipment is often custom
designed for each customer.
b. Major equipment is depreciated over time, whereas accessory equipment is charged
as an expense in the year it is purchased.
c. Major equipment has a short life, whereas accessory equipment has a long life.
d. Major equipment is marketed more through advertising, whereas accessory
equipment is marketed via personal selling.
Which of the following refers to the idea that socially responsible companies will
outperform their peers by focusing on the world’s social problems and viewing them as
opportunities to build profits and help the world at the same time?
a. Philanthropy
b. Sustainability
c. Social regulations
d. Opportunism
Ethics are moral principles unrelated to the conduct of an individual or a group.
a. True
b. False
Packaging of any product is done for the sole purpose of promoting that product.
a. True
b. False
In the context of diffusion of innovation, the dominant value of laggards is _____.
a. skepticism
b. deliberateness
c. adventure
d. tradition
To increase the popularity of its new range of smartphones, GizmoPro Inc. offered
several free accessories to customers who bought their smartphones. However, the offer
turned out to be unsustainable and the company had to offer discounts on the
accessories instead. GizmoPro’s decision is aimed at _____.
a. market share pricing
b. profit maximization
c. demand orientation
d. sales maximization
Pioneering advertising is heavily used during the later stages of the product life cycle
and emphasizes the product’s exclusivity more than offering indepth information about
the product.
a. True
b. False
Offprice retailers sell their goods at prices 25 percent or more below traditional
department store prices. What makes such a policy viable?
a. They offer only volume discounts in exchange for a periodic membership fee.
b. They specialize in a single line of merchandise and are the dominant retailer in their
category.
c. They pay cash for its stock and usually doesn’t ask for return privileges.
d. They resell items purchased from one of the other types of retailers.
Which methodology does Walmart use to determine where in the store to stock products
for customer convenience (for example, placing Kleenex tissues in the papergoods aisle
and also beside cold medicines)?
a. Shopper marketing
b. Shopper analytics
c. Big data analysis
d. Marketbasket analysis
Among the types of external integration that companies want to achieve to be able to
provide toplevel service to their customers, measurement integration reflects the idea
that performance assessments should ______.
a. assess the performance of individual parts of the supply chain separately, not the
whole chain
b. be transparent and measurable across the borders of different firms and units
c. hold the entire chain accountable for meeting the goals of each entity in the chain
d. recommend the inclusion of more business units to expand the supply chain
Advertisements of Dove soap show real women in its campaigns and commercials
rather than celebrities. Which product positioning has Dove chosen for marketing its
soap?
a. Uses or applications by means of positioning
b. Price and quality
c. Attribute
d. Product class
In the context of the portfolio matrix, which statement is generally true of SBUs
considered to be dogs?
a. Protection of existing market share is essential for dogs.
b. Dogs have a dominant market share in lowgrowth markets.
c. Typical marketing strategies for dogs are to harvest or divest.
d. Dogs escalate in the market if given strong financial funding.
Which of the following statements is characteristic of social media?
a. They have a very low cost per contact.
b. They can find customers that are hard to locate.
c. They rely on repetition of the message during promotions.
d. They position information as strictly entertaining.
According to Maslow’s hierarchy of needs theory, selfactualization is the highest human
need of all.
a. True
b. False
Which statement correctly states the relationship between a country’s political structure
and actions and businesses?
a. Regulation does not burden businesses or make it difficult for them operate.
b. International politics rarely affect business laws.
c. Governmentowned industries and centralized planning tend to decrease as rights of
private property increase.
d. Regulations do not help businesses grow and prosper.
Why do salespeople need to conduct thorough and continued followup with clients?
a. Conducting postsale followups gives rise to cognitive dissonance.
b. Customers today are more loyal toward brands and vendors than before.
c. Most businesses depend on repeat sales, which depend on followup by the
salesperson.
d. Buyers look for the best deal when they experience good postsale followup.
Which model suggests that corporate social responsibility is composed of economic,
legal, ethical, and philanthropic responsibilities that are built upon a firm’s economic
performance?
a. Pyramid of corporate social responsibility
b. Behavioral norms of corporate social responsibility
c. Social control
d. Act utilitarianism
Which statement is true of consumer behavior?
a. People’s value systems do not affect their consumer behavior.
b. Consumer behavior cannot be learned.
c. The study of consumer behavior includes factors that influence purchase decisions
and product use.
d. Consumers’ product and service preferences are constant and do not change over
time.
Which of the following statements is true of Baby Boomers?
a. The youngest Baby Boomers were around 34 years old in 2013.
b. They are most concerned with price and quality when making purchase decisions.
c. The size of the Baby Boom cohort group has been increasing in size since 2012.
d. They are a small market with minimal spending power.
Nestor’s Nesties, a confectionery company, sells a variety of dark chocolates, milk
chocolates, gummies, fruit juices, crackers, cereals, and even cheese. These products
together constitute the company’s _____.
a. brand symbol
b. product line
c. brand mark
d. product mix
Because of its recent high growth in the national market, Mable Inc., an online
cosmetics retailer, has divided its U.S. market into segments and is charging a flat
freight rate to all customers in a given segment. In this scenario, Mable Inc. plans to
adopt freight absorption pricing.
a. True
b. False
_____________ is a firm that specializes in interviewing respondents on a
subcontracted basis.
a. A marketing firm
b. An operational firm
c. A research firm
d. A field service firm
Which of the following statements is true of demandsupply integration?
a. It is composed of bundles of interconnected activities that stretch across firms in the
supply chain.
b. It is a system of management practices that is consistent with a “systems thinking”
approach.
c. It is focused on integrating the supplymanagement and demandgenerating functions
of an organization.
d. It is used to align supply and demand throughout the supply chain by anticipating
customer requirements.
The important functions of providing credit, aggregating supplies from multiple
sources, making deliveries, and processing returns often are all carried out by
___________.
a. resellers
b. distributors
c. marketers
d. businessmen
Revel Inc., a cell phone manufacturer, decides to launch its new line of smartphones on
the company’s official website to resolve logistics issues that the company has
identified. With this modification, its customers can now buy the smartphones even if
they are not available in retail locations near potential consumers. In this case, Revel
Inc. focuses on the _____ element of the marketing mix.
a. evaluation
b. promotion
c. price
d. distribution
Providing something to a target market that is unique and valuable beyond simply
offering a lower price than that of the competition is called ________.
a. product/service differentiation
b. a niche competitive advantage
c. a sustainable competitive advantage
d. reengineering
When advertising a test product, should test locations in particular markets be isolated
from media with a far reach, such as television?
a. No, if media advertising cannot reach outside that particular market, it will fail to
project the product’s true potential outside the market and thus the product may then
appear less successful than it could be.
b. No, if media advertising cannot reach consumers within the market area being tested,
it may fail to pull in many consumers from the market and thus the product may then
appear less successful than it could be.
c. Yes, if media advertising reaches a very large area outside that market, it may pull in
many consumers from outside the market being tested and thus the product may then
appear more successful than it really is.
d. Yes, if media advertising persuades consumers in the market area, the product may
then appear more successful than it really is. It would be an advertising success, not a
product success.
Which of the following measures one customer’s influence on the behavior of other
customers through recommendations on social media?
a. Net promoter score
b. Customer relationship score
c. Social CRM
d. Social media score
It is usually ineffective to use marketing tools to transform services involving discrete
transactions into membership relationships.
a. True
b. False
Which of the following statements is true of a bundled price?
a. It is simpler for a firm to administer than pricing each element separately.
b. It is preferable when consumers are willing to pay “extra” for every part of the
service.
c. It is a pricing strategy where customers pay only for the service elements they use.
d. It is a pricing strategy that does not apply to services.
The North American Industry Classification System data can be used to:
a. identify opportunities for new product lines.
b. classify firms according to their number of customers.
c. classify business establishments all over the world.
d. identify potential new customers.
Imitating a rival’s competitive advantage requires a company to first identify the rival’s
competitive advantage.
a. True
b. False
Federal, state, and local buying units account for the greatest volume of purchases of
any customer category in the United States.
a. True
b. False