A young couple contacted a realtor about buying a new home. Now that the realtor has
prospects, his next step should be to ________.
A) handle any of their objections
B) qualify them
C) prepare his approach
D) make a thorough sales presentation
E) close the sale
Favorite Memories is a small company that specializes in serving women over the age
of 50 who are special occasion gift shoppers overlooked by major competitors. Which
of the following best describes Favorite Memories’ market targeting strategy?
A) undifferentiated targeting
B) custom marketing
C) differentiated targeting
D) concentrated targeting
E) mass customization
Which of the following is the narrowest strategy?
A) undifferentiated targeting
B) customized marketing
C) differentiated targeting
D) concentrated targeting
E) mass marketing
Which group of independent intermediaries can be divided into the two broad types of
full-service and limited-service?
A) brokers
B) agents
C) sales branches
D) specialty wholesalers
E) merchant wholesalers
Which of the following would LEAST likely be included in a product’s positioning
statement?
A) the product’s strongest competitors
B) the segment(s) to which the product is targeted
C) the product’s most important differentiator
D) evidence supporting the most important claim made about the product
E) the specific value of the product
Which of the following is an example of a pricing strategy that focuses on customers’
needs?
A) price leadership
B) everyday low pricing
C) distribution-based pricing
D) keystoning
E) skimming
Which of the following is a pricing strategy that reverses the typical assumption about
price-demand relationships?
A) penetration pricing
B) price bundling
C) assimilation effect pricing
D) placebo effect pricing
E) prestige pricing
A(n) ________ is a comprehensive examination of a particular firm or organization.
A) focus group
B) case study
C) longitudinal study
D) market research online community
E) ethnographic study
Which of the following would most likely be used in a focus group?
A) an fMRI machine to better understand why consumers make the decisions they do
B) a one-way mirror that allows a client to observe the group
C) a longitudinal design that tracks the responses of members of the group over time
D) an experiment that attempts to rule out some explanations for consumer decisions
E) a cross-sectional design that collects information from a large number of respondents
Which of the following is a relatively inexpensive objective measurement that public
relations (PR) specialists can use to gauge the effectiveness of their efforts?
A) personal evaluation of PR activities
B) opinion surveys among the firm’s publics
C) coverage in print and broadcast media
D) gross ratings points (GRP)
E) cost per thousand (CPM)
When demand is ________, increases in price result in increases in total revenues,
while decreases in price result in decreases in total revenue.
A) elastic
B) inelastic
C) flexible
D) supply-driven
E) cross-elastic
Which of the following would be the best medium for an advertisement encouraging
customers to come to a local retailer’s weekend sidewalk sale?
A) magazine
B) network television
C) local newspaper
D) directory
E) advergaming
________ is the degree to which a consumer perceives that a new product provides
superior benefits.
A) Compatibility
B) Complexity
C) Relative advantage
D) Comparability
E) Tangibility
Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even
though the Kroger tuna costs $0.15 less per can. Chicken of the Sea has brand
________.
A) extension
B) equity
C) service
D) valuation
E) specialization
Which of the following statements about magazines as an advertising medium is true?
A) Magazines have long lead times and deadlines that can reduce flexibility.
B) Magazines have not benefited from advances in communication technologies.
C) Magazines typically use a mass marketing strategy.
D) Magazines do not accept local advertising.
E) Magazines have poor reproduction quality of images.
The ________ was established by the Federal Trade Commission in 2003 to allow
consumers to limit the number of telemarketing calls they receive.
A) National Do Not Call Registry
B) Child Protection Act
C) Federal Communications Commission
D) Consumer Products Safety Commission Act
E) Robinson-Patman Act
In a(n) ________ structure, there are many sellers, each offering slightly different
products and each having only a small share of the market.
A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition
When the seller takes on part or all of the cost of shipping, it is called ________.
A) freight absorption
B) F.O.B. factory
C) F.O.B. origin
D) uniform delivered
E) two-part pricing
Generally, consumer goods are either ________ or ________.
A) convenience products; staples
B) durable goods; nondurable goods
C) industrial products; packaged goods
D) shopping products; impulse products
E) shopping products; convenience products
A selective distribution strategy is most suitable for which consumer product category?
A) convenience goods
B) unsought goods
C) shopping products
D) luxury products
E) materials and supplies
Which of the following statements about brand equity is NOT true?
A) Brand equity means a brand has customer loyalty.
B) Brand equity refers to the brand’s value to an organization.
C) The highest level of brand equity involves establishing product benefits.
D) Brand equity gives a firm the power to capture and hold onto a larger share of the
market and to sell at prices with higher profit margins.
E) Brand equity can provide a competitive advantage.
Federal legislation on price-fixing requires that sellers set their prices ________.
A) based on their fixed and variable costs
B) without communication with competitors
C) to achieve a specified profit margin
D) consistently with all customers
E) consistently throughout a region
Which of the following is a management philosophy that focuses on satisfying
customers through empowering employees to be an active part of continuous quality
improvement of all aspects of the company’s operations?
A) cannibalization
B) total quality management (TQM)
C) Six Sigma
D) ISO 9000
E) ISO 14000
Organic Designs is a small, successful chain of stores offering stylish clothes made of
all-organic materials for infants, toddlers, and young children. Most of the Organic
Designs stores are located in urban areas. Now Organic Designs is considering using
direct marketing to reach potential customers who live outside of the company’s
existing markets. Which of the following methods of direct marketing would likely be
most effective in accomplishing this goal?
A) direct-mail marketing
B) m-commerce
C) catalog marketing
D) infomercials
E) telemarketing
Which of the following were designed to allow users to alert their friends of their exact
whereabouts via their mobile phones?
A) virtual worlds
B) location-based social networks
C) product review sites
D) social networking sites
E) avatars
A firm is using ________ when it charges a high, premium price for a new product with
the intention of reducing the price in the future.
A) a skimming price
B) trial pricing
C) value pricing
D) penetration pricing
E) prestige pricing
________ is direct communication to a customer that is conducted over the telephone.
A) Direct order
B) Telemarketing
C) Direct-response advertising
D) Direct selling
E) Promotional selling
________ is the extent to which research actually measures what it was intended to
measure.
A) Flexibility
B) Validity
C) Responsiveness
D) Reliability
E) Representativeness
Oreos and Coke are both examples of ________.
A) store brands
B) cobrands
C) private-label brands
D) national brands
E) ingredient brands
Why are prestige products often an exception to the law of demand?
A) The demand curve for prestige products slopes downward and to the right.
B) Increasing the price of prestige products can make them seem more desirable.
C) Demand for prestige products often is greater than supply.
D) Prestige products such as diamonds, sapphires, and emeralds are nonrenewable
resources.
E) Customers are more aware of any price changes to prestige products.
Which of the following is true about a brand manager and a product category manager?
A) They are two titles for the same job.
B) They have the same functional responsibilities.
C) They probably work for large firms.
D) They are mainly responsible for financial decisions.
E) They do not consider new product lines.
Over the past 100 years or so, Binney and Smith’s Crayola crayons have become
household staples in more than 80 countries around the world. The company
occasionally tinkers with the product’s marketing mix to maintain market share. Crayola
crayons are in the ________ stage of the product life cycle.
A) growth
B) extension
C) development
D) maturity
E) decline