Quinn is the sales manager of a firm with a questionable reputation. During his tenure,
he has witnessed numerous incidents of ethical misconduct. Research shows that he
would observe less ethical misconduct if ________________________.
a. his coworkers had a strong ethical culture among themselves
b. a code of ethics was absent from his firm
c. organizational rules were flouted in his firm
d. the top managers of his firm had little control over organizational culture
The Internet, Extranets (private electronic networks), and wireless setups are enabling
buyers to quickly and easily compare products and prices, putting them in a better
bargaining position.
a. True
b. False
Which of the following best defines the term “apps”?
a. Visual advertisements integrated into text messagesand mobile websites
b. Software designed specifically for mobile phone and tablet devices
c. Websites designed specifically for viewing and navigation on mobile devices
d. Devices that allow marketers to send targeted messages to geolocated users
Which term describes a form of price discrimination that can potentially harm the
importing nation’s competing industries?
a. Countertrade
b. Trade barriers
c. Free trade
d. Dumping
The most important use of marketing research is that
a. it can help managers serve both current and future customers accurately and
efficiently.
b. it helps managers eliminate the use of big data for data analysis.
c. it helps managers focus on quantity rather than quality of products.
d. it can help managers ensure that secondary data do not influence marketing
decisions.
Using a capitalintensive technology refers to spending less money for equipment than
labor in the production process.
a. True
b. False
IndigBlue Inc., a distributor of audio equipment, component parts, and supplies, takes
title to all its products. It operates a few warehouses where it stores the finished goods
and reships them to its clients, resellers, and other vendors. IndigBlue Inc. is an
example of a ____.
a. sales agent
b. merchant wholesaler
c. retailer
d. broker
Delat Corp. is a large corporation that offers several product lines. On the company’s
website, the following text is highlighted: “The aim of our business is to achieve
profitability by offering our customers highquality products that are manufactured in a
costeffective manner. Our goal is to provide value to our customers, serve the
community, and preserve the environment.” This text is most likely to be Delat Corp.’s
__________________.
a. article of incorporation
b. statement of qualification
c. scenario planning
d. mission statement
Buying and managing transportation, warehousing, and/or light postponed
manufacturing are logistical functions that typically lend themselves to ______.
a. sustainable supply chain management
b. outsourcing and contract logistics
c. returns management
d. supplier relationship management
The ability to change prices very quickly, often in real time is known as ___________.
a. dynamic pricing
b. status quo pricing
c. satisfactory pricing
d. pricing based on perceived satisfaction
GE has been in the news lately for _____, or bringing back the production of GE
appliances to its Louisville, Kentucky plant from China.
a. inshoring
b. offshoring
c. insourcing
d. importing
One disadvantage of the personal and targeted nature of customer relationship
management (CRM) is that consumers are spending more time making purchase
decisions.
a. True
b. False
Which of the following is a goal of brainstorming?
a. To get a group to arrive at a solution within set parameters
b. To get a group to promote a product without varying it
c. To discuss ideas while avoiding criticism of them
d. To have a group criticize an idea until it is acceptable to all
In which stage of the product life cycle does price decrease as competition increases
and inefficient, highcost firms are eliminated?
a. Growth stage
b. Maturity stage
c. Introductory stage
d. Decline stage
Which of the following consists of all marketing activities—other than personal selling,
advertising, and public relations—that stimulate consumer purchasing and dealer
effectiveness?
a. Public relations
b. Publicity
c. Advertising
d. Sales promotion
The companywide business strategy designed to optimize profitability, revenue, and
customer satisfaction by focusing on highly defined and precise customer groups is
called ______.
a. customer orientation
b. customer value
c. customer relationship management
d. customer satisfaction
_____ is a research method that relies on people watching people, people watching an
activity, machines watching people, and machines watching an activity.
a. Historical research
b. Survey research
c. Observation research
d. Applied research
Rent and Drive is a car rental company. It prices its rentals based on operationsoriented
pricing. In this scenario, Rent and Drive
a. varies the prices according to the supply and demand of cars.
b. maximizes the surplus of income over its costs.
c. allows customers to negotiate price.
d. varies prices for customers from different market segments.
Health Works is a company that offers services related to health promotion and
lifestyle. They not only send their clients reminders for their general checkup but also
make house visits for consultations, which are free if a Health Works products or
services are bought. They also conduct free workshops for their clients to network and
join clusters with similar profiles and regime. Their offerings would fall in the ______
level of relationship marketing.
a. social
b. customization
c. structural
d. financial
Which information source is associated with advertising or promotion?
a. Family recommendations
b. Nonmarketingcontrolled
c. Marketingcontrolled
d. Internal information search
In a multichannel marketing system, each channel does not hold its own inventory.
a. True
b. False
Jason was born in 1970. He spent most of his childhood without much adult guidance
as both his parents were working professionals. In this case, which of the following is
most likely to be true of Jason?
a. He is independent, resilient, adaptable, cautious, and skeptical.
b. He has a pessimistic outlook.
c. His generation outspends other generations on consumer goods and services.
d. He possesses a negligible amount of spending power.
Which statement is true of supply chain management?
a. It reflects a completely employeedriven management philosophy.
b. It enables supply chain managers to focus on pushing products down the marketing
channels to consumers.
c. It enables supply chain managers to respond quickly to sudden changes in supply or
demand.
d. It gives assemblyline employees total control of materials, processes, money, and
finished products.
Which term refers to understanding international marketing opportunities, using
effective global marketing strategies, and knowing the threats from foreign competitors
in all markets?
a. Global vision
b. Global marketing
c. Outsourcing
d. Inshoring
The research and development team of BB Beverages has discovered that, during the
testing process, one of their highly profitable new beverages contains ingredients that
may cause liver damage in humans if consumed regularly over time. Additionally, the
team also acknowledged that the plant that manufactures this beverage draws healthy
groundwater which could cause a water shortage in areas surrounding the plant. Based
on these findings, management has halted its production of this beverage until a
solution can be found that does not adversely affect its consumers and the environment.
Given this decision, it is evident that BB Beverages embraces a ______ orientation.
a. production
b. sales
c. market
d. societal marketing
Service quality is a priority in service industries because that industry is especially
customer oriented.
a. True
b. False
At the preconventional level of ethical development of a person’s moral character, the
individual tends to:
a. focus on the longterm results of his or her actions.
b. have an egocentric orientation.
c. adhere to social norms and laws.
d. focus on societal expectations.
Which statement describes a distribution strategy of a service organization?
a. The intensity of distribution should exceed the target market’s needs and preferences.
b. Having too many outlets to distribute products may boost costs unnecessarily.
c. The location of a service does not influence the distribution strategy of a
timedependent service provider.
d. Because services are intangible, many service firms choose indirect distribution
strategies.
Which of the following statements is true of a niche strategy?
a. Only large companies can implement a niche strategy.
b. Companies that adopt a niche strategy target a single market segment.
c. Only companies that do not have competitors can adopt a niche strategy.
d. Companies that adopt a niche strategy can only gain a price advantage over
competitors.
Which federal agency reviews mergers and acquisitions, and challenges those that
would likely lead to higher prices, fewer choices, or less innovation?
a. The Bureau of Competition
b. Consumer Product Safety Commission (CPSC)
c. Food and Drug Administration (FDA)
d. The Food and Drug Administration (FDA)
SharpSheets is a paper manufacturing company that sells products made of recycled
materials. Because no other paper manufacturing company in the market has the ability
to replicate its products, it can be said that SharpSheets has a competitive advantage.
a. True
b. False
Which of the following represents programs that use convenience to get consumers to
recycle products like batteries or cell phones during a regular trip to the store?
a. Strategic channel alliance
b. Drop and shop
c. Reverse channel
d. Gray marketing
Roger, an affluent college graduate, buys gadgets on the day of their launch in the
market. He reads expert reviews on the Internet, and is not influenced by the opinions
of his family and friends while choosing products. Roger is most likely to belong to the
category of _____ in the context of diffusion of innovation.
a. the late majority
b. innovators
c. the early majority
d. early adopters
Fincorp, an investment banking firm, promotes its offerings through various social
media platforms. Which of the following statements is most likely to be true about
Fincorp?
a. The platforms display content solely generated by Fincorp.
b. Fincorp uses its social media platforms to promote oneway communication, similar
to network television.
c. Fincorp reduces its reach by promoting its products via social media platforms.
d. Fincorp can create conversations with its customers and establish meaningful
connections.