Formed in 2004 and formalized in 2008, ________ makes up the largest trading block
after NAFTA and the European Union.
A) CAFTA-DR
B) FTAA
C) UNASUR
D) MCAN
E) GATT
“To busy multitaskers who need help remembering things, Evernote is a digital content
management application that makes it easy to capture and remember moments and
ideas from your everyday life using your computer, phone, tablet, and the Web.” This is
an example of a(n) ________.
A) positioning statement
B) statement of purpose
C) order-routine specification
D) vision statement
E) product specification
________ are complex behavioral systems in which people and companies interact to
accomplish individual, company, and channel goals.
A) Customer relationship management systems
B) Distribution channels
C) Partner relationship systems
D) Consumer bases
E) Buying centers
________ marketing consists of activities undertaken to create, maintain, or change
attitudes toward particular people. People ranging from presidents, entertainers, and
sports figures to professionals such as doctors, lawyers, and architects use it to build
their reputations.
A) Corporate image
B) Person
C) Social
D) Organization
E) Place
One common form of Internet fraud is phishing, a type of identity theft that uses
deceptive e-mails and fraudulent online sites to fool users into divulging personal data.
The success of the Tom Dennis Ford dealership has been built largely on return
customers and word-of-mouth recommendations. The majority of sales are made to
customers who previously purchased a vehicle at the dealership or who know someone
who had a positive experience of purchasing a vehicle there. The sales force at the Tom
Dennis Ford dealership most likely knows that using high-pressure selling is ineffective
if the dealership wants to ________.
A) achieve short-term gains
B) move last year’s models
C) obey local and federal law
D) build long-term customer relationships
E) maintain a database of local customers
The key is to ________ traditional mass media with online, mobile and social media to
best engage customers, communicate the brand message, and enhance the customer’s
brand experiences.
A) prioritize
B) integrate
C) utilize
D) design
E) spend on
________ means adjusting the marketing strategy and mix elements to each
international target market.
A) Standardized global marketing
B) Ambush marketing
C) Adapted global marketing
D) Mass marketing
E) Whole channel viewing
If demand changes greatly with a small change in price, the demand is ________.
A) variable
B) inelastic
C) derived
D) elastic
E) negative
Which of the following questions is NOT asked when designing a sales force strategy
and structure?
A) Should salespeople sell in the field, by phone, or using online and social media?
B) Should salespeople work alone or in teams with other company employees?
C) How big should the sales force be?
D) Should salespeople follow strict steps in the sales process?
E) How should salespeople and their tasks be structured?
Kirk’s Comic Store has its own mobile app that users can download for free. The app
lets users know about special events, discounts, and merchandise currently available in
the store. Which of the following forms of marketing is exemplified from this scenario?
A) social media marketing
B) kiosk marketing
C) direct-response television marketing
D) mobile marketing
E) direct-mail marketing
Porsche is a German automobile manufacturer that competes against BMW and Audi,
but only in the sports car and SUV segments of the automobile market. Porsche utilizes
a(n) ________ strategy.
A) overall cost leadership
B) focus
C) middle-of-the-roaders
D) market segmentation
E) blue ocean
Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many electronic toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory
nodes along the edges. After being charged in the sunlight, the vacuum could run for 7
hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into
table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the
objects in various directions. This is the same type of technology used in the
manufacture of children’s racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely be
reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a
multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and
several other retail stores in Florida. “It’s such a novel idea,” Evelyn added. “People will
notice it, even if they don’t buy it right away.”
Which of the following stages of new product development was Evelyn involved in
when she set up a demonstration booth to learn about consumers’ feelings toward her
vacuum cleaner?
A) concept testing
B) marketing strategy development
C) idea screening
D) commercializing
E) crowdsourcing
While comparison pricing claims are legal if they are truthful, the FTC warns sellers not
to advertise a) factory or wholesale prices unless such prices are what they claim to be,
b) comparable value prices on imperfect goods, or c) ________.
A) a sale unless the products are available in sufficient quantity to meet expected
demand
B) in a way which confuses potential buyers of the product
C) a description of a product unless all versions of the product are offered with the same
pricing terms
D) a price reduction unless it is a savings from the usual retail price
E) if only a limited quantity are available at the reduced price
Which of the following statements is most likely true of market follower strategies?
A) Market followers have the resources to expand the market by developing new users,
new uses, and more usage of its products.
B) Market followers must expand internationally first to ensure distribution
effectiveness, cost savings, and quality control.
C) Market followers should conduct indirect attacks on competitors’ weaknesses to gain
market share quickly and inexpensively.
D) Market followers benefit from pursuing subsegments of target markets due to their
limited resources.
E) Market followers must keep manufacturing costs and prices low or product quality
and services high.
Many firms today use RFID technology to ________.
A) identify new target markets
B) analyze threats and opportunities in the macroenvironment
C) move toward environmental sustainability
D) track products through various points in the distribution channel
E) track patterns of online consumer behavior
Which of the following is an advantage of using digital catalogs?
A) lists the phone numbers of interested prospects
B) coordinates with direct-response television ads
C) points customers to the nearest kiosk
D) eliminates printing and mailing costs
E) creates emotional contact with customers
The ________ concept calls for socially and environmentally responsible actions that
meet both the immediate and future needs of customers and the company.
A) societal marketing
B) business-to-business
C) direct marketing
D) strategic planning
E) sustainable marketing
Herbie Inc., a firm manufacturing sandwich makers, has fixed costs of $250,000,
variable costs of $20 per unit of output, and expected unit sales of 50,000 units. What is
the unit cost of a sandwich maker manufactured by Herbie?
A) $15
B) $25
C) $30
D) $50
E) $75
A pharmaceutical company in Utah recently released a new and expensive anti-ulcer
drug in the market. The company justifies the high price of the drug by claiming that it
is highly effective for treating all kinds of ulcers. The company also claims that the new
drug will help bring down the need for invasive surgeries, an additional benefit for
patients. Which of the following pricing strategies is the pharmaceutical company most
likely using in this instance?
A) target pricing
B) markup pricing
C) cost-based pricing
D) value-based pricing
E) break-even pricing
The managers of Arrow, an American retail chain, are currently reviewing new
demographic markets to sell the firm’s current products. This is an example of
________.
A) market penetration
B) product development
C) mass marketing
D) market development
E) product adaptation
The principle of ________ requires that the company continuously seek real product
and marketing improvements.
A) consumer-oriented marketing
B) innovative marketing
C) customer-value marketing
D) sense-of-mission customer-value marketing
E) ambush marketing
Dora has formal authority to select the suppliers and arrange terms of purchase for
many of the items her firm uses. Her role in the buying center is that of a(n) ________.
A) user
B) influencer
C) buyer
D) decider
E) gatekeeper
The decision to use an NBA star player to communicate the desirability of Nike
basketball shoes represents the ________ process of the communication model.
A) sourcing
B) messaging
C) acknowledging
D) decoding
E) encoding
Which of the following is NOT a step in the strategic planning process?
A) defining the company mission
B) setting company objectives and goals
C) designing the business portfolio
D) planning marketing and other functional strategies
E) evaluating members of the company’s value chain
In business markets with inelastic demand ________.
A) the total demand for products is not much affected by short-term price changes
B) buyers are highly sensitive to price changes
C) derived demand is absent
D) a business purchase usually involves fewer decision participants
E) a business purchase usually does not involve a professional purchasing effort
If a task is new, complex and costly, on which stage of the buying process will the
buyer spend a greater amount of time?
A) preparing a general needs description
B) deciding on product specification
C) conducting a supplier search
D) preparing an order-routing specification
E) reviewing suppliers’ performance
Which of the following is NOT a cue to consumers about whether a price is high or
low?
A) price-matching guarantees
B) prices of surrounding, similar products
C) signs such as “Clearance”
D) “Coming Soon!” signs
E) location in the store, especially at the entry
Information collected from Internet search engines is an example of ________ data.
A) primary
B) secondary
C) binary
D) low-level
E) disposable
Online companies include all of the following EXCEPT ________.
A) content sites
B) online social media
C) search engines and portals
D) transaction sites
E) brick-and-mortar
Customers can be classified into four relationship groups based on their profitability
and projected loyalty. Which customer type is associated with high profitability and
long-term loyalty?
A) barnacles
B) strangers
C) butterflies
D) true friends
E) cash cows