A(n) ________ brings buyers and sellers together and assists in negotiations.
A) agent
B) broker
C) retailer
D) wholesaler
E) industrial distributor
The major activity in strategic planning is ________, whereby management evaluates
the products and businesses that make up the company.
A) SWOT analysis
B) benchmarking
C) business portfolio analysis
D) breakeven analysis
E) prospecting
Which of the following conditions would enable higher market share to produce higher
profits?
A) when unit costs drop as market share increases
B) when unit costs increase as market share increases
C) when production volume drops as market share increases
D) when production volume remains unaltered as market share increases
E) when the company fails to break even
In which stage of the business buying process does a buyer ask users to rate their
satisfaction with the supplied materials?
A) problem recognition
B) performance review
C) supplier search
D) supplier selection
E) order-routine specification
Maybelline used Gigi Hadid, a model, to endorse a new range of cosmetics. This
message execution style is referred to as ________.
A) lifestyle
B) testimonial evidence
C) image
D) technical expertise
E) personality symbol
Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer
Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the
other, The Landing was an immediate hit with weekend lake visitors and local residents
alike. In the summer, boaters parked at the piers and bought all their fishing needs, such
as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter
months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot
coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a full-fledged residential area. Many of the
houses, which were built as cottages in the 1950s and 1960s, were remodeled into
residential homes. By the end of the 1970s, the days of small motorboats and 10
mile-per-hour speed limits were gone; skiing and fast speedboats became the rage.
Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing
could not compete with larger local retailers. He eventually enlarged the sandwich
counter, transforming the bait shop and grocery into a restaurant with a full menu
typical of any diner. “Getting rid of the bait shop was hard to do,” Casey admitted. “I
still had a summer crowd that relied on us for their fishing needs, but we couldn’t
survive a whole year on four months of profit.”
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became
upscale. “I could see that people were spending more on their speed boats than what
they had originally paid for their cottages!” Casey exclaimed. Many of the cottages
were inherited by children and grandchildren of the original owners. Once again, the
scene started to change as many of the lake houses were used only as weekend lake
homes. Unlike the previous generation, a vast number of the current owners could
afford to live closer to their jobs while maintaining lake homes. “At this point, business
wasn’t growing,” Casey said.
As local competition continued to increase, Casey converted the diner of The Landing
into a bar with a lounge area. “The change might have been too drastic,” Casey said,
“but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces.”
Which of the following microenvironment actors has had the most influence on The
Landing?
A) competitors
B) suppliers
C) marketing intermediaries
D) resellers
E) citizen-action publics
________ perform a role similar to that of brokers or agents but are part of the buyer’s
organization.
A) Truck jobbers
B) Merchant wholesalers
C) Purchasing officers
D) Rack jobbers
E) Cash-and-carry wholesalers
Which of the following is the aim of the product concept?
A) improve the marketing of a firm’s best products
B) market only those products with high customer appeal
C) focus on the target market and make products that meet those customers’ demands
D) focus on making continuous product improvements
E) ensure that product promotion has the highest priority
________ markets buy goods and services for further processing.
A) Business
B) Reseller
C) Wholesale
D) Consumer
E) Retail
A company is guilty of ________ if the company forgets latent competitors and only
focuses on current competitors.
A) perfect competition
B) self-competition
C) Cournot competition
D) competitor backlinking
E) competitor myopia
Which of the following is true about online direct marketing?
A) Online direct marketing is also referred to as multi-level marketing.
B) Salespersons are compensated for other salespeople they recruit.
C) Online direct marketing allows sellers to create immediate, timely, and personal
offers.
D) Online direct marketing involves two or more intermediaries.
E) In online direct marketing, outside and inside sales forces coordinate to provide
value products to customers.
________ refer to members of the buying organization who help define specifications
and provide information for evaluating alternatives.
A) Gatekeepers
B) Influencers
C) Users
D) Deciders
E) Buyers
Donna wants to buy a new coat. During the ________ stage of the buyer decision
process she will ask her friends to recommend stores that sell good quality winterwear
clothing. She will also go through newspapers and magazines to look out for offers and
sales on coats.
A) product evaluation
B) alternative evaluation
C) need recognition
D) information search
E) purchase decision
Which of the following is NOT an example of product-oriented mission statements?
A) “We are an online library.”
B) “We run theme parks.”
C) “We sell athletic shoes.”
D) “We sell memorable experiences.”
E) “We rent hotel rooms.”
When performing a break-even analysis, the manufacturer should consider all of the
following EXCEPT ________.
A) probable demand
B) likely profits
C) competitors’ pricing
D) estimated break-even volumes
E) different prices
Effective Web sites contain interactive tools that help find and evaluate content of
interest, links to other related sites, useful information, changing promotional offers,
and ________.
A) celebrity endorsers
B) respected columnists
C) advertising for unrelated products
D) enticements for customers to include their friends and contacts
E) entertaining features that lend excitement
Companies use secondary data, personal experience, and word of mouth to ________.
A) identify competitors’ target customers and strategies
B) identify competitors’ target locations and market share
C) learn about their competitors’ strengths and weaknesses
D) select competitors to attack or avoid
E) estimate competitors’ sales projections
________ refers to the characteristics of a product or service that bear on its ability to
satisfy stated or implied customer needs.
A) Brand equity
B) Product quality
C) Product labeling
D) Brand image
E) Brand personality
Which of the following is the best example of a desirable product?
A) breakfast cereal
B) cigarettes
C) effective but foul-tasting medicine
D) junk food
E) dental insurance
Changes to service differentiation include all of the following EXCEPT ________.
A) smarter customers
B) decreased services at department stores
C) more price-sensitive consumers
D) customers’ willingness to pay more for identical brands
E) increased services from discounters
At Comfort Homes, a manufacturer of furniture and home accessories, the global
operating units report directly to the chief executive instead of a head of an
international division. The company recruits management from many countries and
buys components and supplies where they cost the least. Comfort Homes is most
accurately classified as a(n) ________.
A) direct exporter
B) geographical organization
C) international subsidiary
D) global organization
E) world product group
Which of the following is used in an attempt to dominate the market through a pricing
strategy?
A) price increase
B) match competitors’ pricing
C) price cuts
D) quantity discounts
E) custom prices
Underpriced products ________.
A) produce less revenue than they would if they were priced at the level of perceived
value
B) sell poorly in the global marketplace
C) produce more revenue than they would if they were priced at the level of perceived
value
D) mostly offer higher value than those with a high markup price
E) are characterized by rapidly declining demand
Which of the following is true about business purchases?
A) Business purchases involve more professional purchasing effort than consumer
purchases.
B) Business purchases involve fewer participants in decision making compared to
consumer purchases.
C) Purchasing agents are absent in business purchases.
D) Business purchases involve less technical and economic considerations compared to
consumer purchases.
E) Business purchases are usually quicker and more informal than are consumer
purchases.
Which of the following is true about secondary data?
A) It is always current and, unlike primary data, it does not have to be updated.
B) Unlike primary data, it can be obtained by using direct surveys and questionnaires
by the company.
C) It cannot provide extra information a company is looking for.
D) It can be obtained more quickly and at a lower cost than primary data.
E) It requires more effort compared to gathering primary data.
Deficient products are products ________.
A) that have neither immediate appeal nor long-run benefits
B) that give high immediate satisfaction but only hurt consumers in the long run
C) that have low appeal but may benefit consumers in the long run
D) that are either unsafe or inferior
E) in the decline stage of the product life cycle
Refer to the scenario below to answer the following question(s).
Essential-Beauty is a rapidly growing firm that manufactures women’s makeup,
perfumes, and nail-care products. The company has established itself as a high-end
cosmetic product brand available at most national drug stores. In the past, almost all of
the advertising for Essential-Beauty has been in women’s fashion magazines.
The firm is now launching a new line of skin care products, ranging from facial
cleansers to body lotion. These products are designed to be marketed to a broader
audience, so the marketing team is exploring the effectiveness of different promotional
mixes.
Before deciding to launch the new line of products, Essential-Beauty conducted
extensive market research to make sure the products were optimally positioned. A
complete marketing plan including mobile advertising, magazine advertising, event
sponsorship, and sales promotions was established long before the products themselves
were ready for market. In this case, Essential-Beauty was using ________.
A) cost leadership
B) entrepreneurial marketing
C) intrepreneurial marketing
D) formulated marketing
E) operational excellence
Companies that take a proactive stance toward the marketing environment are most
likely to ________.
A) develop strategies to change the environment in their favor
B) passively accept the marketing environment
C) resist organizational change
D) discourage innovation
E) consider technological advances more disruptive than beneficial
A ________ documents an organization’s purpose—what it wants to accomplish in the
larger environment.
A) vision statement
B) mission statement
C) business portfolio
D) value proposition
E) product strategy
A runner-up firm that wants to hold its share in an industry without rocking the boat is a
________.
A) market follower
B) market maven
C) market challenger
D) market nicher
E) market leader
Cause-related marketing has become a primary form of ________.
A) quality control
B) corporate fraud protection
C) corporate giving
D) legislative lobbying
E) price discrimination
________ are a form of product that consists of activities, benefits, or satisfactions
offered for sale that are essentially intangible and do not result in the ownership of
anything.
A) Liabilities
B) Services
C) Brands
D) Consumer products
E) Specialty products
Governments develop public policy to ________.
A) encourage deregulation
B) identify demographic patterns
C) identify cultural patterns
D) guide commerce
E) protect marketers
A ________ is an unsolicited, unwanted commercial e-mail message that clogs up
e-mailboxes.
A) catalog
B) spam
C) podcast
D) tweet
E) blog
Identify the major advantage of the following forms of digital and social media
marketing: Web sites, viral marketing, e-mail, blogs, social media, and mobile ads and
apps.
A marketer has chosen a multiple-city test market. What can be concluded from this
choice of a multiple-city test market?
Explain why an ad might need to be modified from one country to the next.
What are some of the limitations of observational research?
Describe social selling and what changes it is bringing to the selling process.
Give an example of a multichannel distribution system.
Why is price considered one of the most flexible elements of the marketing mix?
Why have firms adopted sales force automation systems?
Describe the significance of public relations as a mass-promotion tool.
Differentiate between dynamic and fixed pricing.
In the communication process, what is noise and what is its significance?
Describe the largest form of online advertising.
How can companies learn about their competitors’ strengths and weaknesses?
Differentiate between controlled test markets and simulated test markets.
Identify and describe the stages in the adoption process.
Discuss the affordable method of setting the total budget for advertising.
What are the characteristics of a successful Web site?