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Which of the following is NOT part of the business market?
A) Kruger Group sells interior security systems to resorts.
B) A country club buys safety equipment for its swimming pool.
C) Sue shops for her family's groceries at the local Whole Foods store.
D) A firm buys laptops from Dell for company salespeople to use when traveling.
E) Airmark sells a vinyl printing press to a manufacturer of plastic storage containers.
Answer:
In business markets with inelastic demand ________.
A) the total demand for products is not much affected by short-term price changes
B) buyers are highly sensitive to price changes
C) derived demand is absent
D) a business purchase usually involves less decision participants
E) a business purchase usually does not involve a professional purchasing effort
Answer:
Big Moose Toys is a market pioneer introducing a modern version of Bubble the
Moose, a character from an animated television series originally broadcast in the '50s
and '60s. The company's version of Sandy the Flying Squirrel, a character from the
show targeted to baby boomers, was a strong success. Since the firm is a market
pioneer, it needs to make the new launch strategy for Bubble the Moose consistent with
the intended ________.
A) pricing
B) product positioning
C) brand extension
D) prototype
E) fad
Answer:
Refer to the scenario below to answer the following question(s).
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a
shoe store, a small restaurant, and a grocery store. Over the next two decades, the small
town transformed into an international tourist attraction, attracting thousands of tourists
who were intrigued by the lifestyle of Shipshewana's largest populationthe Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on
their town's popularity and their woodworking skills. Their shop, Indiana Wood, began
with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But
within a few months, the display at Indiana Wood included picnic tables, flower boxes,
and small handmade novelty items. No other shop offers the same variety.
Mary Miller decorated the shop's display room with authentic Amish dcor and
eventually hired three Amish friends to sew and embroider napkins and other textiles as
customers had requested such items. In addition, two women from the Amish
community sought permission from the Millers to display home-baked pastries and
jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to
its flea market on the south edge of town. The Millers also hired four more people to
help customers throughout the purchasing process and to provide the required
product-related information to the customers.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to
buy things made in China or Taiwan. They want real, Amish-made goods."
Retailers can also be classified by the length and breadth of their product assortments.
In terms of product line, what kind of retailer is Indiana Wood?
A) supermarket
B) specialty store
C) category killer
D) department store
E) convenience store
Answer:
When sellers set prices after talking to competitors and engaging in collusion, they are
involved in ________.
A) interstate commerce
B) comparative pricing
C) price fixing
D) skimming pricing
E) price bundling
Answer:
A mission statement serves as a ________.
A) statement of the organization's net profits
B) plan for short-term sustainability
C) statement of the organization's purpose
D) statement of the organization's current liabilities
E) reward plan for the organization's highly-skilled employees
Answer:
Which of the following is an environmental factor that influences business buyers?
A) organizational procedures
B) individual motives
C) organizational objectives
D) supply of key materials
E) group dynamics
Answer:
Building and maintaining profitable customer relationships by delivering superior
customer value and satisfaction is called ________.
A) customer lifetime value
B) customer-perceived value
C) customer relationship management
D) partner relationship management
E) customer equity
Answer:
________ analysis is an overall evaluation of the company's strengths, weaknesses,
opportunities, and threats.
A) Porter's five forces
B) A breakeven
C) A regression
D) A SWOT
E) A cluster
Answer:
In an effort to differentiate its offerings from its competitors, Pegasus Computers
decided to add an extra USB port in all its laptops besides providing a free pair of
Delphi power bass headphones with every Pegasus laptop. Although the additional
features increased the price of the laptops by $500, Pegasus was confident that the
strategy would help boost demand for its laptops substantially. This is an example of
________.
A) good-value pricing
B) markup pricing
C) break-even pricing
D) value-added pricing
E) cost-based pricing
Answer:
Which of the following is a traditional sellers' right?
A) the right to create a monopoly in the market
B) the right to acquire competitors to prevent competition
C) the right to promote any product to any audience
D) the right to add additional taxes if necessary
E) the right to introduce any product in any size and style
Answer:
________ consists of evaluating each market segment's attractiveness and selecting one
or more segments to enter.
A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation
E) Differentiation
Answer:
The ________ environment consists of institutions and other forces that affect a
society's basic values, perceptions, preferences, and behaviors.
A) social
B) cultural
C) political
D) physical
E) natural
Answer:
________ are human needs that are shaped by culture and individual personality.
A) Necessities
B) Wants
C) Demands
D) Values
E) Exchanges
Answer:
Which of the following is a specialized and highly targeted media selection that an
advertiser might use to reach smaller customer segments?
A) radio
B) magazines
C) newspapers
D) network television
E) online social networks
Answer:
Marissa Hopkins, a hospital nurse, notices that the gurneys used in the hospital are not
durable enough. She informed the hospital authorities about Grace Care Inc., a new
company selling lightweight and durable gurneys. In this instance, Marissa played the
role of a(n) ________.
A) strategist
B) buyer
C) gatekeeper
D) influencer
E) decider
Answer:
Refer to the scenario below to answer the following question(s).
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a
merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a
popular family attraction with 20 rides, a restaurant, and an outdoor performing arts
theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart,
the owner. "We just knew that weekenders coming to the lakes in our rural area
represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even
senior citizens who enjoy strolling through the gardens and the arbors. "There's
something here for everyone," Gail Hart said with a smile. "Dozens of companies hold
annual company picnics here. We have welcomed class field trips. And we even had
one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so
successful. There is nothing else like Fun-Spot Fun Park in the area. We were just
lucky." "I think it's the ambience of the park that has brought so many visitors," Gail
added. "We provide a 'total package' of entertainment. Plus, we try to change our rides
and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has
always been our philosophy," they said. "Like the park's motto at the entrance reads,
'We're here to make you happy!' And we've always been able to deliver on that because
we've never allowed ourselves to grow too big too quickly."
Which of the following is true with regard to a SWOT analysis?
A) It classifies SBUs into four distinct categories.
B) It measures customer response to a new product.
C) It evaluates the company's overall strengths.
D) It evaluates the growth potential of a market segment.
E) It ignores the threats faced by a company while assessing its situation in the market.
Answer:
Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products
to wholesalers and individual customers. This is an example of ________.
A) sales promotion
B) personal selling
C) public relations
D) direct marketing
E) advertising
Answer:
Teen Mania Inc., a company marketing adventure sports merchandise for teenagers,
targets the world's teenagers, who have similar needs and buying behavior even though
they are located in different countries. Which of the following market segmentation is
evident here?
A) income segmentation
B) psychographic segmentation
C) gender segmentation
D) intermarket segmentation
E) occasion segmentation
Answer:
________ is known as the merging of consumers, products, prices, and retailers.
A) Retail conglomeration
B) Consumer convergence
C) Price merging
D) Retail convergence
E) Retail clustering
Answer:
Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages
that do not, even though the cottages and services offered are identical in every other
aspect. This form of pricing is called ________ pricing.
A) location-based
B) time-based
C) by-product
D) seasonal
E) captive product
Answer:
Environmentalists assert that the marketing system's goal should be to maximize
________.
A) sales and profits
B) consumer satisfaction
C) life quality
D) consumer choice
E) consumption
Answer:
Which of the following is true of product bundle pricing?
A) It promotes the sale of products that consumers might not otherwise buy.
B) It is used to set prices across an entire product range based on customer evaluations.
C) It forces customers to buy product parts that are only compatible with the main
product.
D) It results in companies making fewerthough more profitablesales.
E) It involves pricing the main product low and setting high markups on the supplies.
Answer:
________ refers to a market-coverage strategy in which a firm decides to ignore market
segment differences and go after the whole market with one offer.
A) Individual marketing
B) Local marketing
C) Niche marketing
D) Undifferentiated marketing
E) Segmented marketing
Answer:
Which of the following is a major step in selecting advertising media?
A) determining reach, frequency, and impact
B) selecting message execution style
C) developing a compelling creative concept
D) deciding on format elements
E) planning a message strategy
Answer:
Bicycle helmets have low immediate appeal, but they tend to benefit consumers in the
long run. This indicates that a bicycle helmet is an example of a ________ product.
A) salutary
B) desirable
C) pleasing
D) durable
E) aesthetic
Answer:
Tourism Australia's global marketing campaign, "There's nothing like Australia" is an
example of ________ marketing.
A) corporate image
B) person
C) organization
D) internal
E) place
Answer:
Apart from retaining good customers, most marketers want to constantly increase their
'share of customer." What does this mean in marketing terms?
A) Marketers want to increase their market share.
B) Marketers want to increase the share they get of the customer's purchasing in their
product categories.
C) Marketers want to diversify their operations and customize their products to cater to
the entire market.
D) Marketers want to continuously increase their customers' levels of satisfaction.
E) Marketers want to turn satisfied customers into delighted customers.
Answer:
Which of the following contact methods is the most cost-effective?
A) telephone interviews
B) individual interviews
C) in-depth interviews
D) online surveys
E) group interviews
Answer:
Which of the following is an indirect business marketing channel?
A) producer to retailer to business distributor
B) producer to wholesaler to retailer to end consumer
C) producer to end-consumer to business distributor
D) producer to retailer
E) producer to business distributor to business customer
Answer:
A product idea is ________.
A) the way consumers perceive an actual or potential product
B) the knowledge and awareness of a product among consumers
C) a possible product that the company can see itself offering to the market
D) a detailed version of the new product idea stated in meaningful consumer terms
E) the testing of new product concepts with groups of target consumers
Answer:
