Target return pricing uses the concept of a(n) ________, which shows the total cost and
total revenue expected at different sales volume levels.
A) BCG matrix
B) break-even chart
C) SWOT analysis
D) demand curve
E) experience curve
Answer:
A university enrolled 200 graduate students in the Fall of 2011. However, the
enrollment rate was only slightly affected following a 12-percent hike in tuition the
following fall. This illustrates ________ demand.
A) derived
B) negative
C) highly elastic
D) composite
E) inelastic
Answer:
Governments develop public policy to ________.
A) encourage deregulation
B) identify demographic patterns
C) identify cultural patterns
D) guide commerce
E) protect marketers
Answer:
The greater the number of channel levels in a marketing channel, the ________.
A) less distance between producer and end-consumer
B) greater the channel complexity
C) less time it takes for products to reach end-consumers
D) greater the control producers have over the distribution of their products
E) greater the control producers have over the demand of their products
Answer:
Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national
and international distribution. If the test market results look promising, what should be
management’s next step?
A) retest the product in additional markets
B) develop a planned market rollout over time
C) liquidate its assets to gain capital and capacity
D) seek the help of a nationally known consultant
E) develop a prototype
Answer:
Which of the following product characteristics refers to the degree to which the
innovation appears superior to existing products?
A) compatibility
B) divisibility
C) communicability
D) relative advantage
E) complexity
Answer:
Which of the following refers to the process of dividing a market into distinct groups of
buyers with different needs, characteristics, or behaviors?
A) market diversification
B) market segmentation
C) downsizing
D) customer relationship management
E) prospecting
Answer:
Which of the following is an example of a pure tangible good?
A) a laptop with a comprehensive warranty for three years
B) an online shoe retailer that provides free home delivery
C) an agency that offers free legal advice
D) a credit card
E) a bag of potato chips
Answer:
Service ________ means that services cannot be seen, tasted, felt, heard, or smelled
before they are bought.
A) inseparability
B) variability
C) intangibility
D) perishability
E) heterogeneity
Answer:
Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type
of marketing channel does Lifebelt use?
A) inclusive
B) multitiered
C) indirect
D) direct
E) selective
Answer:
By using ________ to contact potential customers, marketers sell directly to consumers.
A) undercover marketing
B) outbound telephone marketing
C) affinity marketing
D) multi-level marketing
E) ambush marketing
Answer:
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
Answer:
The early ________ cut expenses by offering few services and operating in
warehouse-like facilities in low-rent, heavily traveled districts.
A) department stores
B) hypermarkets
C) discount stores
D) supermarkets
E) full-service retailers
Answer:
If a company ________, it should adopt a product sales force structure, in which the
sales force specializes along product lines.
A) specializes in a single product
B) manufactures a small number of simple products
C) maintains that product specialization is counter productive
D) has numerous and complex products
E) lacks salespeople with superior technical know-how
Answer:
According to the “Privacy Promise to American Consumers” program, DMA members
need to comply with which of the following consumer privacy rules?
A) agree to notify customers when any personal information is rented, sold, or
exchanged with others
B) offer to register all customers in the National Do Not Call Registry
C) make sure that consumers are adhering to the Children’s Online Privacy Protection
Act
D) educate consumers on the Can Spam legislation
E) include the advertising option icon to let consumers know why they are being
targeted
Answer:
Which of the following wholesaler’s channel functions is demonstrated when a
wholesaler’s sales force helps a manufacturer to reach many small customers at a low
cost?
A) bulk-breaking
B) selling and promoting
C) buying and assortment building
D) risk bearing
E) rack jobbing
Answer:
Consumers in the “lifestyles of health and sustainability” market are more likely to seek
________.
A) alternative medicine
B) perfumes made from animal products
C) clothing made of fur
D) leather goods
E) foods high in saturated fat
Answer:
Even large companies use infomercials for all the following reasons EXCEPT to
________.
A) recruit members
B) refer customers to retailers
C) attract buyers to online, mobile, and social media sites
D) introduce new advertising campaigns
E) sell their products
Answer:
When marketers set low expectations for a market offering, they run the risk of
________.
A) disappointing loyal customers
B) having to use an outside-in rather than an inside-out perspective
C) failing to attract enough customers
D) failing to understand their customers’ needs
E) incorrectly identifying a target market
Answer:
Which of the following is an organizational factor that influences business buyers?
A) technology
B) company procedures
C) employee attitudes
D) employee motives
E) group dynamics
Answer:
A ________ is a wholesaler-sponsored group of independent retailers that engages in
group buying and common merchandising.
A) voluntary chain
B) retailer cooperative
C) franchise
D) wholesale club
E) warehouse club
Answer:
Electrowhip, a company that manufacturers blenders and electric whisks, has decided to
use a market penetration pricing strategy. Which of the following, if true, proves their
decision to be a wise one?
A) Electrowhip’s competitors utilize social media for marketing their products.
B) Electrowhip sells products whose image and quality support high prices.
C) Electrowhip operates in a market with many competitors.
D) Electrowhip does not operate in a price sensitive market.
E) Electrowhip’s products are intended to appeal to the elite in society.
Answer:
The single most important demographic trend in the United States is the ________.
A) changing age structure of the population
B) mobility of families
C) changing family structure of the population
D) increasing number of professional jobs
E) increasing birth rate
Answer:
Hispanic Americans tend to be deeply family oriented and make shopping a family
affair. Older consumers are brand loyal, while younger Hispanics have shown
increasing price sensitivity and willingness to choose store brands. Hispanic Americans
make up a ________.
A) subculture
B) social class
C) social network
D) life-cycle stage
E) lifestyle
Answer:
Information collected from Internet search engines is an example of ________ data.
A) primary
B) secondary
C) binary
D) low-level
E) disposable
Answer:
The fact that people are dropping out of organized religion doesn’t mean that they are
abandoning their faith. Some futurists have noted a renewed interest in ________,
perhaps as a part of a broader search for a new inner purpose.
A) interacting with nature
B) the fine arts
C) charitable giving
D) spirituality
E) materialism
Answer:
Which of the following best explains why public relations is often overlooked as a tool
for supporting product marketing objectives?
A) Public relations departments are typically large divisions within corporations.
B) The time and costs associated with public relations prohibit its extensive use.
C) Public relations specialists lack the skills necessary to work with marketing experts.
D) Many public relations professionals see their jobs as communicating not brand
building.
E) The public relations department handles stockholders and legislators but not
employees.
Answer:
Consumer advocates, government agencies, and other critics have accused marketing of
harming consumers through ________.
A) technological obsolescence
B) sales promotion tactics
C) viral marketing
D) anti-trust laws
E) planned obsolescence
Answer:
When theaters vary seat prices due to audience preferences for seats in coveted rows,
they use ________ pricing.
A) customer-segment
B) location-based
C) time-based
D) product line
E) captive product
Answer:
________ segmentation divides the market into segments based on variables such as
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and
generation.
A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic
Answer:
Proposals related to ________ include controlling the ingredients that go into certain
products and packaging as well as reducing the level of advertising “noise.”
A) the right to be informed
B) consumer protection
C) preserving the world for future consumption
D) the right to charge any price for the product
E) quality of life
Answer:
Over the past two decades, the U.S. population has shifted toward the ________ states.
A) Northern
B) Northeast
C) Sunbelt
D) Midwest
E) Corn belt
Answer:
A major step in regulating “unfair or deceptive business acts and practices” was the
enactment of the ________ in 1938.
A) Robinson-Patman Act
B) Wheeler-Lea Act
C) Interstate Commerce Commissions
D) Taft-Hartley Act
E) Stamp Act
Answer: