Which of the following statements about the World Trade Organization (WTO) is most
accurate?
a. The World Trade organization is a temporary institution.
b. The 153 member countries of the WTO account for less than 25 percent of world
trade.
c. The WTO sets rules governing trade among its members.
d. The WTO uses panels of trade experts who can issue non-binding recommendations.
e. The WTO was formed by the United Nations.
Answer:
All of the following statements are true EXCEPT:
a. During the past few years, more people have migrated from suburbs to exurbs.
b. The number of micropolitan statistical areas exceeds those of metropolitan statistical
areas.
c. During the 2000s, the U.S. population shifted from urban cities to suburbs.
d. During the early 1900s, the U.S. population shifted from rural areas to cities.
e. Most of the people in the United States reside in suburbs.
Answer:
A trade name refers to __________.
a. any word, device (design, sound, shape or color), or combination of these used to
distinguish a seller’s goods or services
b. the part of a brand name that can be spoken
c. the legally registered brand name of a firm’s product or service that give it exclusive
use, thereby preventing competitors from using it
d. the commercial, legal name under which a company does business
e. a logotype plus the brand name
Answer:
Kemps Dairy makes Life Savers Real Fruit Sherbet (with the flavors of a favorite
childhood candy). Kemps Dairy had to pay Wrigley, the owner of the Life Savers brand
name, a fee to market this concoction. This is most likely an example of __________.
a. generic branding
b. reseller licensing
c. mixed branding
d. brand licensing
e. co-branding
Answer:
An ad campaign by Suave shampoo asked television viewers to identify the heads of
hair of women who used Suave shampoo and conditioner and those that used the much
more expensive salon hair-care products. The idea of the ad was that no one could tell
which woman used the much cheaper Suave brand. By making price its selling point,
Suave is most likely using __________.
a. above-market pricing
b. loss-leader pricing
c. prestige pricing
d. skimming pricing
e. below-market pricing
Answer:
The aggregation of prospective buyers into groups that (1) have common needs and (2)
will respond similarly to a marketing action is referred to as __________.
a. market diversification
b. market differentiation
c. market segmentation
d. market augmentation
e. market repositioning
Answer:
Figure 1.
According to Figure 1. above, “B” represents which dimension of service quality?
a. reliability
b. assurance
c. empathy
d. tangibility (tangibles)
e. responsiveness
Answer:
Wolfermans.com is a company that sells gourmet English muffins, specialty breads, and
exquisite desserts in gift assortments. When you access its website, you discover
fourteen pictures that make lavish use of color. The Wolferman’s website design
conveys the core consumer benefits provided by the company’s offerings through the
use of __________.
a. context
b. commerce
c. communication
d. connection
e. customization
Answer:
Subliminal Book Cover Photo
The book cover photo above for The Secret Sales Pitch: An Overview of Subliminal
Advertising, is about subliminal messages, which reflect a person“s __________
influences.
a. sociocultural
b. situational
c. psychological
d. acculturation
e. value
Answer:
Your neighborhood dry cleaner or florist is likely to be categorized as an independent
retailer. This means it is owned by a(n) __________.
a. individual
b. conglomerate
c. consortium
d. corporation
e. cooperative
Answer:
A marketing research approach that uses a discussion leader to interview 6 to 10 past,
present, or prospective customers is referred to as
a. a depth (or individual) interview.
b. data mining.
c. a research team.
d. a focused interview.
e. a focus group.
Answer:
When shopping on the Internet, most consumers assume the personal information they
give out is confidential. Subscribers to America Online (AOL) were upset when AOL
proposed giving member information to partners without telling them. This is related
most directly to consumers’ right to
a. be heard.
b. be treated courteously.
c. safety.
d. happiness.
e. be informed.
Answer:
Research indicates that there are four key factors involved with salesforce motivation:
(1) __________; (2) effective sales management practices; (3) a personal need for
achievement; and (4) proper compensation, incentives, or rewards.
a. a clear job description
b. constructive criticism
c. an opportunity for professional growth
d. a moderate degree of competitive spirit within a team
e. adequate time for bookkeeping and paperwork
Answer:
Core values refer to
a. the cultural ethos of an organization.
b. proprietary values of a firm.
c. written mission statements that express an organization’s goals and objectives.
d. the personal moral and ethical codes of a firm’s stakeholders.
e. the fundamental, passionate, and enduring principles that guide an organization’s
conduct over time.
Answer:
At the time of its introduction, which of the following products was the best example of
a continuous innovation?
a. the Palm Pilot personal digital assistant (PDA)
b. the first video game system (Atari)
c. Breathe Right nasal strips, a sticky strip that is worn across the nose at night to help
people with a stuffy nose to breathe better
d. Via Voice Gold voice-recognition software
e. Naturalpoint Trakir, which replaces the computer mouse by tracking head movements
and then translating those head movements into cursor commands
Answer:
Predicting the future in terms of environmental scanning requires assumptions about
a. the total potential investment required to achieve the company’s goals.
b. the total potential revenues that could be generated as a result of additional
investment now.
c. the number of years the trends will continue and the factors that cause these trends to
change.
d. the skills the marketing department has to be able uncover trends in the marketplace.
e. the effectiveness of the tools employed, such as scenario casting.
Answer:
Important market characteristics in organizational buying behavior include which of the
following?
a. unlimited markets but orders are becoming progressively smaller
b. diminishing international opportunities as more firms enter the market
c. more customers placing progressively smaller orders
d. fewer customers but with larger orders
e. a market that functions independently of consumer demand
Answer:
There are five stages in the consumer purchase decision process. The fourth stage is
__________.
a. information search
b. purchase decision
c. alternative evaluation
d. postpurchase behavior
e. problem recognition
Answer:
In the VALS framework, self-expression-motivated consumers who have fewer
resources and express themselves and experience the world by working on it, are
referred to as __________.
a. Experiencers
b. Thinkers
c. Strivers
d. Believers
e. Makers
Answer:
Beginning January 1, 2005, China lifted the import quotas and lowered tariffs on
automobiles. This removal of the quotas and the lowering of tariffs is an example of
a. relaxing the rule of eminent domain.
b. reducing ethnocentrism.
c. enhancing domestic imperialism.
d. reducing protectionism.
e. enhancing countertrade.
Answer:
All of the following were pre-launch issues 3M encountered before it could offer the
Post-itFlag Highlighter EXCEPT:
a. manufacturing issueswhere will the product be produced?
b. place issueshow will 3M persuade office supply retailers and college bookstores to
carry the items?
c. promotion issueshow will 3M tell students the offering exists?
d. price issueswhat should 3M charge for this innovation and should there be
differences between different retail outlets (college bookstores, mass merchandisers,
office supply stores, etc.)?
e. market segmentation issueswho is(are) the target market(s) for this offering?
Answer:
DLS Cosmetics is trying to create brand awareness by sending households free samples
of its products as well as coupons. These free samples and coupons are examples of
__________.
a. free advertising
b. personal selling
c. sales promotions
d. free publicity
e. direct sales
Answer:
Sales management refers to __________.
a. the planning the selling program and implementing and evaluating the personal
selling effort of the firm
b. the process of allocating funds for promotion and advertising
c. the recruiting, hiring, and training of a company’s salesforce
d. the segmentation and selection of target markets to be addressed by a company’s
salesforce
e. the two-way flow of communication between a buyer and seller, often in a
face-to-face encounter, designed to influence a person’s or group’s purchase decision
Answer:
Which of the following is an inherent weakness of direct marketing?
a. It is a low cost means of reaching the target market.
b. Its messages may differ between direct mailings, confusing the target market.
c. It is expensive and time consuming to develop and maintain a database.
d. It is difficult to get media cooperation.
e. It can lead to promotion wars.
Answer:
Which of the following is an important guideline provided in the text for using a fear
appeal?
a. Make sure the advertisement is still appropriate for viewing by children.
b. Make the appeal so strong that it appears humorous.
c. Don’t make the appeal so strong that consumers want to “tune out” the advertisement.
d. Avoid any reference to death or dying.
e. Make sure to emphasize that the outcome rests in the viewers’ hands.
Answer:
Partnership selling is sometimes referred to as __________.
a. enterprise selling
b. transactional selling
c. strategic selling
d. creative selling
e. synergistic selling
Answer:
Post Grape-Nuts cereal has been marketed since the early 20thcentury. Its market share
has been steadily declining as consumers began associating it with something their
grandfathers ate. Post recently launched a campaign to increase consumption of the
cereal by inviting consumers to sprinkle the crunchy cereal on yogurt, salad, or soup as
a delicious addition. Post wanted to convince people either who had never tried the
cereal or who were familiar with the product to use it in a variety of different ways. In
this example, Post is using which segmentation variable?
a. needs
b. lifestyle
c. behavioral
d. psychographic
e. demographic
Answer:
For many years, Kellogg’s Frosted Flakes, a ready-to-eat breakfast cereal, was
perceived as a cereal for children. Tony the Tiger, a cartoon character, extolled Frosted
Flakes, and advertisements depicted children enjoying the product with Tony in
competitive situations. Recently, in response to declining sales of Frosted Flakes, the
cereal-maker has adopted a new series of advertisements that show adults admitting that
they enjoy Frosted Flakes, too. Kellogg’s is attempting to __________.
a. develop a perceptual map for Frosted Flakes
b. reposition Frosted Flakes
c. complete the Frosted Flakes product life cycle
d. introduce a new product line extension for Frosted Flakes
e. position Frosted Flakes
Answer:
The actual procedures, mechanisms, and flow of activities by which a service is created
and delivered is referred to as __________.
a. a process
b. a procedure
c. productivity
d. a protocol
e. a plan
Answer:
With respect to distribution, shopping products are available
a. by special order from the manufacturer.
b. at an extremely small number of outlets.
c. at relatively few outlets.
d. at a large number of selective outlets.
e. on a widespread basis at many outlets.
Answer:
Many prescription drugs such as Lipitor have national TV advertising campaigns to
encourage patients to learn more about the drugs and ask for them by name from their
doctors. The manufacturers of these drugs are using a(n) __________ promotional
strategy.
a. intense
b. pull
c. push
d. inertia
e. exclusive
Answer:
Trend hunting is the practice of identifying “emerging shifts in social behavior,” which
are driven by changes in pop culture that can lead to new products. Trend Hunter has
identified over 120,000 “__________” through its global network of 71,000 members.
a. mega trends
b. micro-trends
c. macro trends
d. environmental forces
e. psychographic trends
Answer:
Which of the following statements regarding the seller’s price is most accurate?
a. Internet price changes are regulated by the Internet Fair Practices Act to protect
consumers against price gouging.
b. The seller’s price is constrained by the type of market within which it competes.
c. Price changes cannot be regulated in a monopoly.
d. The type of market has little or no impact on a firm in a monopolistic competitive
environment.
e. Competitive environments should affect a firm’s pricing objectives, but not its actual
product prices.
Answer:
A recent Congressional initiative mandated that the U.S. Department of Transportation
(USDOT) establish a national traffic information collection system. The marketing
manager of a company that provided traffic reports for local radio stations would most
likely incorporate this knowledge into its SWOT analysis as
a. a weakness if the company has an existing working relationship with the USDOT.
b. an opportunity if the USDOT will give this information directly to all radio stations.
c. a weakness if the company that provides local traffic information has no employees
who are technologically capable of using the USDOT system.
d. a threat if the USDOT is creating a network of local traffic-information providers to
address the mandate.
e. part of a marketing plan; this information would not be part of a SWOT analysis.
Answer: