In the U.S. alone, roughly 500 million computers will become obsolete by 2017. These
computers contain more than 2 billion pounds of what will become lead waste that is
harmful to the environment. As a result, computer manufacturers are being pressured to
accept the return of used computers for the safety of communities. This environmental
issue reflects a problem with __________, a technological issue within the marketing
environment.
a. recycling
b. gray marketing
c. preowned marketing
d. postcycling
e. precycling
Answer:
Pizza Hut’s most frequent customers divide into two categories: (1) __________ and (2)
young adult males with active lifestyles.
a. people returning home from work
b. families and mothers with no time
c. college students living on campus
d. men who watch sports on weekends
e. high school students on dates
Answer:
Which of the following statements about the introduction stage of the product life cycle
is most accurate?
a. If a firm’s product is especially good, efforts should be made to create selective
demand rather than primary demand in order to allow the firm to distinguish itself from
competitors.
b. During the introduction stage, it is best to avoid a skimming pricing strategy.
c. During the introduction stage, it is best to avoid a penetration pricing strategy.
d. A firm should introduce the identical product at several different price points in order
to gauge customer price sensitivity.
e. Because of large initial investment costs, industry profits often must go from negative
to positive.
Answer:
A need-satisfaction presentation format that focuses on problem identification, in which
the salesperson serves as an expert on problem recognition and resolution, is referred to
as __________ selling.
a. adaptive
b. suggestive
c. formula
d. consultative
e. relationship
Answer:
Complaints about Microsoft’s Xbox video game consoles began immediately after its
introduction. These complaints ranged from missing parts to incorrect programming.
Microsoft should have should adopted a(n) __________ goal.
a. profit
b. sales revenue
c. customer satisfaction
d. quality
e. employee welfare
Answer:
The tendency to believe it is inappropriate, indeed immoral, to purchase a foreign-made
product is referred to as
a. cultural ethnocentricity.
b. consumer ethnocentrism.
c. xenophobia.
d. cross-cultural bias.
e. cultural imperialism.
Answer:
A __________ is a reduction in a retail price that is necessary if the item will not sell at
the full selling price to which it has been marked up.
a. stockturn rate
b. markdown
c. ROI
d. markup
e. net margin
Answer:
One of the disadvantages associated with television as an advertising medium is that it
a. has a short exposure time.
b. cannot target specific audiences.
c. must use print for effect.
d. has an unlimited amount of advertising time available.
e. is not effective for conveying simple messages.
Answer:
The Price Premium Marketing Dashboard above shows the dollar and unit market
shares for selected energy drinks. What is the price premium for Red Bull in 2009?
a. 12.1%
b. 0%
c. -5.0%
d. -5.6%
e. -11.%
Answer:
Aggregating prospective buyers into groups that have common needs and will respond
similarly to a marketing action is referred to as
a. consumer differentiation.
b. psychographics.
c. market segmentation.
d. market delineation.
e. aggregation marketing.
Answer:
Corporate and marketing executives search continuously to find and exploit
__________, which is a unique strength relative to what competitors are doing now and
likely to do in the future.
a. a competitive advantage
b. sustainable dominance
c. strategic competency
d. market dominance
e. a point of difference
Answer:
A market orientation refers to
a. the orientation of an organization that focuses its efforts on: (1) continuously
collecting information about the environment; (2) keeping abreast of the actions of its
competitors; and (3) using this information to create customer value.
b. the orientation of an organization that focuses its efforts on: (1) continuously
collecting information about customers’ needs; (2) sharing this information across
departments; and (3) using it to create customer value.
c. the belief that the buying environment for any given industry is volatile and therefore
all marketing decisions should be short-term and easily adaptable to change.
d. the belief that the buying environment for any given industry is relatively stable and
therefore all marketing decisions should be long-term for fear of losing focus.
e. the point of view that holds that there is always someone who needs or can benefit
from your product, and if one segment fails, there is an even better one somewhere in
the “market.”
Answer:
Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other
international brands is pervasive in China because laws protecting intellectual property
are unclear and sporadically enforced. Even when sanctions are applied, sanctions are
minimal, typically consisting of confiscation, a warning, a public apology, and perhaps
a fine. Moreover, copying enjoys a long tradition in China and does not carry a stigma.
A business introducing a product into China needs to know that its __________ may
lead to trademark infringements.
a. religious precepts
b. antecedent states
c. moral idealism
d. societal culture and norms
e. utilitarianism
Answer:
When conducting marketing experiments, the independent variable often involves
marketing mix elements such as product features or coupons, while dependent variables
often include
a. elements of environmental forces that cannot be controlled.
b. changes in channels of distribution or pricing rather than product features or price.
c. elements of the marketing mix that cannot be manipulated.
d. the primary experimental hypothesis.
e. changes in purchases such as dollar or unit sales of individuals or organizations.
Answer:
The value to consumers that comes from having the offering available when they need
it constitutes __________ utility.
a. place
b. possession
c. market
d. time
e. form
Answer:
Buzz is particularly influential for which of the following items?
a. toys, pharmaceuticals, motion pictures, and consumer electronics
b. parenting, gardening, retirement funds, and health insurance
c. funeral services, cruises, foreign travel, and higher education
d. daycare, silver-plating, restaurants, and road paving
e. tennis lessons, veterinarians, dance studios, and pressure washing
Answer:
A fixed amount paid to a site for posting an ad for a finite amount of time is referred to
as
a. cost per thousand (CPM).
b. cost per click (CPC).
c. cost per action (CPA).
d. negotiated (cost).
e. commission (cost).
Answer:
The social forces of the environment include the demographic characteristics of the
population and its __________.
a. geographic locations
b. social classes
c. cohorts
d. values
e. ethics
Answer:
The United States Army recently has been both praised and criticized for its use of a
popular video gameAmerica’s Army, which is designed to reach potential recruits. The
game’s creator, Colonel Casey Wardynski, wanted to provide a sense of the training and
teamwork one could find in the military environment. The game is designed for “boys
14 years or older,” which represent the Army’s __________.
a. mass market
b. actual recruits
c. restricted market
d. target market
e. untapped market
Answer:
By dividing its tennis racquet market into three categories, which it labels Performance,
Recreational, and Junior tennis players, Prince Sports is using a marketing strategy
called
a. product differentiation.
b. product innovation.
c. market delineation.
d. market segmentation.
e. product groupings.
Answer:
People who referred 10 friends to the Procter & Gamble website for Physique shampoo
(www.physique.com) received a free, travel-size styling spray and were entered in a
sweepstakes to win a year’s supply of the shampoo. The promotion generated 2 million
referrals and made Physique the most successful new shampoo ever launched in the
United States. To accomplish this, P&G used __________.
a. opt-out marketing
b. customerization
c. viral marketing
d. niche marketing
e. buzz marketing
Answer:
In the 1960s, President Kennedy developed what is known as the Consumer Bill of
Rights. This legislation was developed to protect consumers from unscrupulous
marketers and guaranteed consumers four fundamental rights, including the right to be
informed, the right to choose, the right to be protected, and the right to be heard. More
recently, the Children’s Online Privacy Protection Act (1998) has been passed. Many
laws such as these are the results of __________.
a. marketing ethics
b. self-regulation
c. cause marketing
d. consumerism
e. Naderism
Answer:
The three degrees of distribution density are
a. intensive, extensive, and selective.
b. extensive, concentrated, and selective.
c. intensive, exclusive, and selective.
d. extensive, pervasive, and concentrated.
e. concentrated, exclusive, and intensive.
Answer:
Diversification refers to the marketing strategy of
a. increasing sales of current products in current markets.
b. selling current products to new markets.
c. selling new products to new markets.
d. selling new products to current markets.
e. selling the same brands in both current and new markets.
Answer:
A slotting fee is a payment a
a. wholesaler makes to place a new product on a retailer’s shelf.
b. manufacturer makes to have a wholesaler distribute a new product to retailers.
c. manufacturer makes to place a new product on a retailer’s shelf.
d. manufacturer makes to a wholesaler as compensation for warehousing inventory.
e. manufacturer makes to a retailer as compensation for sales not made while the
product was on the shelf.
Answer:
Which of the following is NOT a disadvantage of online surveys?
a. e-mail surveys may be viewed as “junk”
b. the cost
c. some potential respondents have a “pop-up blocker” that prohibits a browser from
opening a separate window that contains the survey
d. respondents can complete the survey multiple times, creating a significant bias in the
results
e. some potential respondents may employ spam blockers.
Answer:
Five pricing practices are closely scrutinized because of potential unethical or illegal
actions. They include: (1) price fixing; (2) predatory pricing; (3) deceptive pricing; (4)
geographical pricing; and (5) __________.
a. price discounting
b. lateral price fixing
c. regional rollbacks
d. delayed payment penalties
e. price discrimination
Answer:
Vivian Calloway’s marketing research team discovered that consumers like to see the
chocolate chips on top of their chocolate chip cookies. Taking a risk, General Mills
invested in new manufacturing equipment to make this a reality. The result was that
a. although customers said they wanted to see the chips on top of the cookie, there was
no significant increase in sales when the chips were placed there.
b. the cost and maintenance of the new equipment exceeded any gains in revenues.
c. sales of chocolate chip cookies fell dramatically, but when the same strategy was
adapted to other cookies, such as raisins placed on top of oatmeal cookies, the
experiment was a tremendous success.
d. although sales increased by approximately 4%, the decision whether the experiment
was a success or a failure remains uncertain.
e. sales increased 50 percent when the chocolate chips were placed on top of the
cookies.
Answer:
When manufacturers market their product lines using transactional websites, they often
a. cooperate with marketplace retailers.
b. run the risk of breaking anti-competitive laws, such as the Clayton Act.
c. keep their website as simple as possible.
d. change their pricing strategy from a skimming to a penetration pricing strategy.
e. employ the services of Internet warehouses so they do not have to maintain title to
the goods.
Answer:
Resale price maintenance was declared illegal in 1975 under the
a. Sherman Act.
b. Consumer Goods Pricing Act.
c. Robinson-Patman Act.
d. Federal Trade Commission Act.
e. Clayton Act.
Answer:
Independent retailers account for most of the __________ retail establishments in the
United States.
a. 50,000
b. 90,000
c. 500,000
d. 900,000
e. 1.1 million
Answer:
All of the following are demand-oriented approaches to selecting an approximate price
level EXCEPT:
a. odd-even.
b. yield management.
c. customary.
d. bundle.
e. prestige.
Answer:
A company placing an order from the Lab Safety Supply catalog is instructed to add
$25.00 to the total cost of the order to pay for shipping. Which method of shipping does
this catalog supplier use?
a. FOB origin pricing
b. multiple-zone pricing
c. freight absorption pricing
d. single-zone pricing
e. basing-point pricing
Answer: