Carlos, CEO of Fresh Foods, wants a qualitative forecasting technique that is quick,
inexpensive, and can be effectively used to forecast sales in the short run and for new
product development. Which of the following techniques will best suit his purpose?
a. Delphi technique
b. Survey of buyer intentions
c. Test markets
d. Jury of executive opinion
According to Maslow’s hierarchy of needs, some people fixate on a need and fail to
move beyond it.
a. True
b. False
Considerable external search for alternatives is typical when consumers are involved in
extended problem solving.
a. True
b. False
Each month Costco, a warehouse membership club with locations across the United
States sends a magazine/catalog with articles about its members as well as featured
products. Costco utilizes ________ marketing to create a meaningful dialog which
builds relationships and encourages brand loyalty.
a. database
b. reciprocal
c. affinity
d. frequency
In a salute to fans of the Olympic games, Ralph Lauren launched a complete wardrobe,
inspired by the Olympics designs, for men, women, children, and infants. This is an
example of _____ marketing.
a. distributive
b. internal
c. database
d. affinity
A(n) _____ is a full-function merchant wholesaler that markets specialized lines of
merchandise to retail stores.
a. stock-keeping unit (SKU)
b. markup
c. markdown
d. retail convergence
e. scrambled merchandising
f. atmospherics
g. broker
h. general merchandise retailer
i. category killer
j. rack jobber
k. supercenter
l. auction house
m. specialty store
n. retailers
o. mass merchandiser
p. truck jobber
q. direct marketing
r. drop shipper
s. planned shopping center
t. wheel of retailing
The rule of three states that the three leading firms in an industry will control _____
percent of the market.
a. less than 25
b. less than 50
c. between 70 and 90
d. 100
When shifts in consumer preferences bring about an absolute slump in industry sales, a
product is said to be in the _____ stage of the product lifecycle.
a. introductory
b. growth
c. maturation
d. decline
Which of the following scenarios best illustrates reinforcement in purchasing decisions?
a. A chef purchases mushrooms for a second time from a wholesaler, even though the
first order was disappointing.
b. An appliance distributor replaces a dishwasher free of charge and provides excellent
after-sales service.
c. A needle on the gas gauge signals a driver to pull into a gas station.
d. The smell of hot dogs at a ballpark induces an obese man to order “a dog with
everything on it.”
Selling up is a retailing practice in which salespeople try to persuade customers to buy
higher-priced items than originally intended.
a. True
b. False
Salespeople involved in suggestive selling try to help customers recognize true needs
rather than unwanted merchandise.
a. True
b. False
Profits typically are higher when an incremental-cost pricing approach is utilized.
a. True
b. False
A retailer that offers a large assortment within a single product line or within a few
related product lines is known as a(n):
a. limited-line store.
b. industrial distributor.
c. specific-line store.
d. rack jobber.
Which of the following is a just-in-time strategy that helps in reducing the time a
retailer must hold products in the inventory?
a. Lateral partnership
b. Quick-response merchandising
c. Symbiotic merchandising
d. Vertical strategic alliance
Direct TV and Dish Network often advertise introductory price promotions for new
customers providing cost savings on satellite TV and/or Internet bundles. What type of
relationship marketing strategy is used in this example?
a. level one marketing
b. level two marketing
c. level three marketing
d. level zero marketing
The _____ is a trade bloc that establishes a free-trade area and a uniform tariff for trade
with nonmember nations.
a. common market
b. common area of administration
c. customs union
d. cooperation council
The role of a sales representative in the promotion process has changed from that of
persuader to that of a:
a. technician and expert on product repair.
b. process designer.
c. problem solver.
d. confidant.
Martin, a marketing manager, contributes toward community development and
volunteers for various civic awareness programs. These activities help Martin in
satisfying his _____ needs.
a. physiological
b. belongingness
c. self-actualization
d. safety
Finished business products of one producer that become part of the final products of
another producer are called _____.
a. marketing mix
b. specialty products
c. product
d. services
e. convenience products
f. impulse goods
g. installations
h. wholesalers
i. business-to-business (B2B)
j. supplies
k. emergency goods
l. shopping products
m. component parts and materials
n. staples
o. product mix
p. product line
q. line extension
r. total quality management
s. product lifecycle
t. benchmarking
_____ are the mental filtering processes of a person through which all inputs must pass.
a. evoked set
b. consumer behavior
c. culture
d. reference group
e. Asch phenomenon
f. opinion leader
g. need
h. motive
i. perception
j. attitude
k. learning
l. subliminal perception
m. high-involvement purchase decision
n. closure
o. cognitive dissonance
p. routinized response behavior
q. shaping
r. perceptual screens
s. evaluative criteria
t. self-concept
When a logistics manager combines several unitized loads into a single, well-protected
load for shipment, it is called:
a. suboptimization.
b. consolidation.
c. containerization.
d. palletization.
Compared with personal selling, advertising, and sales promotion, expenditures for
public relations usually are high in most firms.
a. True
b. False
Jonathan Nash, aged 60, feels young at heart and spends most of his leisure time
networking with family and friends online or surfing the Web. He can be characterized
as:
a. a social animal
b. a generation Xer
c. a baby boomer
d. a Web addict
A product manager often leads new product development programs, including creation
of new product ideas and recommendations for improving existing products.
a. True
b. False
One of the main ways in which a wholesaling intermediary can cut the costs of buying
and selling between manufacturers and customers is by __________________.
a. taking on the risk of merchandise spoilage, theft, or obsolescence
b. providing marketing information to manufacturers and customers
c. representing multiple producers and reducing the number of transactions
d. facilitating the exchange of merchandise titles from producers to customers
e. using agents and brokers who do not actually take title to merchandise
The classification system for business products emphasizes customer buying behavior
rather than product uses.
a. True
b. False
Which of the following is a trend usually observed during an economic depression?
a. Consumers are willing to spend more for premium versions of wellknown brands.
b. Consumers have money to spend, but caution often restrains their willingness to buy.
c. Consumers focus on more basic, functional products that carry lower price tags.
d. Businesses offer new products, expand distribution, and raise prices to widen profit
margins.
The term _____ refers to the use of outside vendors to produce goods and services that
were formerly produced in-house.
a. merchandisers
b. trade industries
c. remanufacturing
d. nearshoring
e. end-use application segmentation
f. global sourcing
g. joint demand
h. inelastic demand
i. outsourcing
j. value analysis
k. gatekeeper
l. commercial market
m. reciprocity
n. vendor analysis
o. category advisor
p. modified rebuy
q. demographic characteristics based segmentation
r. influencers
s. buyer
t. customer-based segmentation
Members of the trade industries acquire products primarily to support the production of
other goods and services.
a. True
b. False
Walmart is the largest retailer in the world and is known for being very demanding with
its suppliers. Walmart exerts control over its suppliers due to its large size and buying
capacity and manufacturers often acquiesce to the demands made by Walmart. Walmart
is an example of a channel _______.
a. captain
b. intermediary
c. sponsor
d. leader
All Hispanics speak the single universal form of Spanish.
a. True
b. False
By enabling the coordination of all promotional activities to produce a unified,
customerfocused promotional message, emarketing helps reach consumers through:
a. personalization.
b. interactive marketing.
c. mass marketing.
d. integrated marketing.
Multiple sourcing is defined as purchasing from several vendors. Which of the
following is an advantage of multiple sourcing?
a. protects a firm from shortages
b. interacting with multiple vendors is more efficient
c. enables a firm to use a centralized purchasing strategy
d. purchasing agents can save time
Snaptell allows shoppers to retrieve more information about products while shopping in
brickandmortar stores. It is an example of a(n) _____.
a. microblog
b. social network
c. app
d. firewall