List two benefits of using secondary data.
A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output,
and break-even volume of 50,000 units. What should the manufacturer’s unit cost be in
order to break even?
A) $10
B) $12
C) $14
D) $16
E) $20
Ferrari sports cars claim superior quality, performance, and style. Ferrari provides
“perfection” at a premium price to keep its brand image intact. Which type of value
proposition does Ferrari most likely position its products with?
A) more for the same
B) more for more
C) less for much less
D) the same for less
E) more for less
Television, as a medium of advertisement, is characterized by ________.
A) high audience selectivity
B) low absolute costs
C) poor mass-marketing coverage
D) fleeting exposure
E) high cost per exposure
________ involves entering a foreign market by developing foreign-based assembly or
manufacturing facilities.
A) Indirect exporting
B) Direct investment
C) Joint venturing
D) Contract manufacturing
E) Direct exporting
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
Hearth & Home, a store which sells household products, has announced a one-week
sale on its new carpet line. This is an example of ________.
A) promotional pricing
B) seasonal pricing
C) by-product pricing
D) product bundle pricing
E) time-based pricing
In a ________, new products and marketing tactics are tested online in a virtual
shopping environment.
A) controlled test market
B) simulated test market
C) standard test market
D) focus group
E) survey
Critics have accused some producers of practicing ________ by using materials and
components that will break, wear, rust, or rot sooner than they should.
A) high-pressure selling
B) short-term planning
C) planned obsolescence
D) nonfunctional warranty
E) deceptive promotion
Companies that pursue a clear strategy will likely perform well. Firms that do not
pursue a clear strategy are called ________.
A) jack-of-all-trades
B) middle-of-the-roaders
C) niches
D) red oceans
E) laggards
In a ________ situation, the “in” suppliers may become nervous and feel pressured to
put their best foot forward to protect an account and the “out” suppliers may see the
present situation as an opportunity to make a better offer and gain new business.
A) straight rebuy
B) new task
C) reverse auction
D) modified rebuy
E) solutions selling
________ includes sales presentations, trade shows, and incentive programs.
A) Direct marketing
B) Sales promotion
C) Personal selling
D) Public relations
E) Advertising
________ allowances are payments or price reductions that reward dealers for
participating in advertising and sales support programs.
A) Promotional
B) Trade-in
C) Segmented
D) Functional
E) Dynamic
________ are goods offered either free or at low cost as an incentive to buy a product,
ranging from toys included with kids’ products to phone cards and DVDs.
A) Coupons
B) Premiums
C) Price packs
D) Rebates
E) Cents-off deals
Which of the following is a positive aspect of a competitor-centered company?
A) It carries out its own customer relationship strategy.
B) It bases its own moves on competitors’ moves.
C) It searches out competitors’ weaknesses.
D) It concentrates its resources on delivering superior value to target customers.
E) It ends up seeking innovative ways to create more value for customers.
All of the following organizations are likely part of the institutional market EXCEPT
________.
A) LaGrange Community Hospital
B) Worthampshire Prison
C) Lancaster Real Estate Company
D) Water Street Nursing Home
E) Millersville Community College
The overselling of private goods results in ________.
A) cultural pollution
B) misdirected funding
C) social costs
D) materialism
E) opportunity expenses
Mary Conti, a sales manager at National Computer Training, wants to evaluate the
performance of her sales force in the New England territory. Which of the following
would Mary most likely use?
A) SWOT analysis
B) breakeven analysis
C) sales forecast
D) expense reports
E) call plan
According to the five-step model of the marketing process, a company should
________ before designing a customer-driven marketing strategy.
A) determine how to deliver superior value to customers
B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
E) construct an integrated marketing program
When an effective program can be designed for attracting and serving a particular
segment, the segment is best described as ________.
A) accessible
B) measurable
C) competitive
D) actionable
E) differentiable