American Hospital Supply helps its customers (hospitals) manage inventory and
streamline order processing for hundreds of medical supplies. The source of American
Hospital Supply’s power is its
a. economic influence.
b. expertise.
c. identification with a particular channel member.
d. legitimate rights through contracts.
e. governmental contracts.
Answer:
Direct selling, sometimes called _________, involves direct sales of goods and services
to consumers through personal interactions and demonstrations in their home or office.
a. interface marketing
b. flex-marketing
c. interactive selling
d. responsive selling
e. door-to-door retailing
Answer:
New product failures may be reduced or avoided if the company developing the new
product has
a. support from marketer-dominated sources of information.
b. a clear product definition.
c. a statement of competitive intent.
d. stakeholder approval in the development process.
e. a precise protocol.
Answer:
The principal difference between the two major types of websites is that promotional
websites are designed to __________ while transactional websites are designed to
__________.
a. create portals; act as bots
b. convert online browsers into online buyers; promote a company’s products and
services
c. provide information about a company; move consumers closer to a purchase
d. move consumers closer to a purchase; provide information about a company
e. promote a company’s products and services; convert online browsers into online
buyers
Answer:
Commuters in New York often have often installed radio frequency identification
(RFID) devices on their cars that can be read automatically as they approach a
tollbooth. This saves time, improves traffic flow, and means drivers don”t need to keep
exact change in their cars. It also offers New York authorities the opportunity to manage
traffic flow by charging different toll amounts for different times of day. Commuters in
New York are experiencing
a. price gouging.
b. off-peak pricing.
c. flow management pricing.
d. price differentiation.
e. idle production pricing.
Answer:
Generation X consumers are
a. people that like to rely on others.
b. collaborative decision-makers.
c. somewhat prone to extravagance.
d. generally not supportive of racial and ethnic diversity.
e. poorly educated.
Answer:
Figure 1.
Based on the social media identified in Figure 1. above, blogs are
a. highly interactive websites.
b. high in self-disclosure but low in media richness.
c. low in self-disclosure but high in media richness.
d. websites that are low in self-disclosure.
e. websites that are high in media richness.
Answer:
As the marketing manager for Acme Products Inc., you just became the new program
leader for Baubles, a product Acme introduced last year. Initial sales far exceeded
expectations. In response, the previous program leader decided to reduce the profit
margins for channel members to more quickly recover the high costs incurred in the
development of the Baubles product and its marketing program. Unfortunately, sales of
Acme Baubles declined by 2 percent while its market share declined by 7 percent as
new competitors entered the market. After conducting a customer survey, you
concluded that customers were generally satisfied with Acme’s Baubles. However,
Baubles were not as readily accessible as they were the previous year. Furthermore,
after conducting a survey among the leading wholesalers and retailers of Acme Baubles,
you discovered they were not pleased with the reduced margins. Moreover, because
Acme’s principal competitors offered them greater margins, they gave the competitors’
products better service and shelf space than Acme’s. This is an example of
a. an appropriate marketing strategy and effective implementation.
b. an inappropriate marketing strategy but effective implementation.
c. an appropriate marketing strategy but ineffective implementation.
d. an inappropriate marketing strategy and ineffective implementation.
e. ineffective evaluation.
Answer:
In marketing, advertisements or salespeople can activate a consumer’s purchase
decision process by
a. creating a sense of fear or guilt.
b. manipulating a customer’s want into a need.
c. promising product attributes that exceed the actual product potential.
d. showing the shortcomings of competing (or currently owned) products.
e. shifting the consumer’s focus from internal search to external search.
Answer:
What market entry option allows a company to make the least number of changes in
terms of its product, its organization, and even its corporate goals?
a. exporting
b. licensing
c. joint venture
d. direct investment
e. franchising
Answer:
American Express Company pioneered cause marketing when it sponsored the
renovation of
a. Carnegie Hall.
b. Madison Square Garden.
c. Liberty Hall.
d. the Statue of Liberty.
e. the Lincoln Memorial.
Answer:
The most indirect channel for consumer products incorporates agents, wholesalers, and
retailers and is most commonly used when there
a. are only a few large manufacturers but many small retailers.
b. are low-cost, low unit volume goods.
c. is too large an inventory to be carried by wholesalers.
d. are many small manufacturers and many small retailers.
e. are many manufacturers with a limited inventory competing for a small group of
retailers.
Answer:
Intermediaries perform facilitating function activities, which assist producers in making
goods and services more attractive to buyers. These activities include
a. producing, assembling, and distributing.
b. transportation and distribution.
c. buying, selling, and risk taking.
d. assorting, sorting, and storing.
e. financing, grading, and marketing information and research.
Answer:
A two-way link between buyer and seller that helps in monitoring service and
anticipating future needs is referred to as
a. honesty.
b. reliability.
c. communication.
d. being well-informed.
e. accountability.
Answer:
A reverse auction refers to an online auction
a. where firms may sell their overstockunused raw materials, packaging, and toolsto the
highest bidder.
b. in which a manufacturer offers to share its facilities, inventory, or services with other
smaller firms that are invited to bid in competition with each other.
c. in which a smaller manufacturer seeks to share the facilities, inventory, or services of
a larger firm, and invites those firms to bid in competition with each other.
d. in which a buyer communicates a need for a product or service and would-be
suppliers are invited to bid in competition with each other.
e. where firms seek to purchase other firms’ overstockunused raw materials, packaging,
and toolswhile trying to find the lowest price possible.
Answer:
Online media where users submit news, photos, and videosoften accompanied by a
feedback process to identify “popular” topicsare referred to as
a. gaming websites.
b. Facebook.
c. electronic media.
d. social media.
e. feedback media.
Answer:
As a dimension of service quality, the knowledge and courtesy of employees, and their
ability to convey trust and confidence is referred to as __________.
a. reliability
b. responsiveness
c. competence
d. assurance
e. empathy
Answer:
The result of offers that contain all the information necessary for a prospective buyer to
make a decision to purchase and complete the transaction is referred to as __________.
a. direct orders
b. lead generation
c. traffic generation
d. indirect orders
e. prospect bid
Answer:
Target profit pricing refers to
a. adjusting the price of a product so it is “in line” with that of its largest competitor.
b. setting an annual target of a specific dollar volume of profit.
c. setting the price of a line of products at a number of different price points.
d. adding a fixed percentage to the cost of all items in a specific product class.
e. setting prices to achieve a profit that is a specified percentage of production costs.
Answer:
The concept of internal marketing is based on the notion that a service organization
must focus on its __________ before successful programs can be directed at customers.
a. competitors
b. prospects
c. shareholders
d. employees
e. suppliers
Answer:
The Foreign Corrupt Practices Act
a. has different levels of punishment based upon the wealth of the host nation.
b. regulates only the behavior of U.S. businesses conducting business within the United
States.
c. makes the theft of trade secrets by foreign entities a federal crime in the United
States.
d. is a unilateral agreement the United States made with several developing nations.
e. makes it a crime for U.S. corporations to bribe an official of a foreign government or
political party to obtain or retain business in a foreign country.
Answer:
Inventory management systems that are designed to reduce the retailer’s lead time for
receiving merchandise, which then lower a retailer’s inventory investment, improve
customer service levels, and reduce logistics expense are referred to as
a. order replenishment systems.
b. quick response systems.
c. customer logistics factors.
d. minimum-inventory systems.
e. web-based response systems.
Answer:
A trade-in allowance refers to
a. a noncash exchange of one product for another of equal or greater value.
b. a cash-back payment when a more expensive item is replaced with a less expensive
item.
c. a price reduction given when a used product is part of the payment on a new product.
d. the return of money based on proof of purchase.
e. a cash payment to a retailer for extra in-store support or special featuring of the
brand.
Answer:
Increases in discretionary income can occur as a result of all of the following
EXCEPT:
a. an increase in gross income.
b. a decrease in taxes.
c. an increase in disposable income.
d. an increase in savings.
e. a decline in inflation.
Answer:
The interactive capabilities of Internet-enabled technologies that invite customers to
engage in an electronic dialogue with marketers for the purpose of making informed
choices is referred to as
a. chat assistance.
b. blog assistance.
c. tweet assistance.
d. choice assistance.
e. bot assistance.
Answer:
Redbox places vending machines at local convenience and grocery stores that allow
customers to rent and return popular DVDs 24 hours a day. This creates both
__________ and __________ utility.
a. form and place
b. form and time
c. place and time
d. time and possession
e. form and possession
Answer:
What technology term would be used to describe the file that captures visitor
information to a website, such as expressed product preferences, personal data,
passwords, and credit card numbers?
a. spies
b. spiders
c. loggers
d. cookies
e. trackers
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 it 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, profits generated from the sales of the new
product often go from negative to positive.
Answer:
The stage of the new-product process that turns an idea on paper into a prototype is
referred to as __________.
a. idea generation
b. screening and evaluation
c. business analysis
d. commercialization
e. development
Answer:
Figure 1.
The consumers represented by “C” in Figure 1. above are called __________.
a. innovators
b. late majority
c. early majority
d. early adopters
e. laggards
Answer:
Figure 1.
Figure 1. above represents the six steps in setting price. Which letter represents the step
where a firm would estimate price elasticity?
a. “A”
b. “B”
c. “C”
d. “D”
e. “E”
Answer: