PR can have a strong impact on public awareness at a much higher cost than advertising
can.
Answer:
A product idea is an idea for a possible product that a company can offer the market.
Answer:
The number of products supplied indicates the length of a channel.
Answer:
Many companies now use customer profitability analysis to identify and weed out
unprofitable customers.
Answer:
A downward-sloping experience curve is indicative of a company’s rapidly increasing
production costs.
Answer:
Tariffs are limits on the amount of foreign imports that a country will accept in certain
product categories.
Answer:
The most important objective of reminder advertising is telling the market about a new
product.
Answer:
A person’s occupation has no effect on the goods and services that she buys.
Answer:
The customer-driven marketing strategy involves four steps: market segmentation,
market targeting, positioning, and differentiation.
Answer:
Markup pricing is used when a firm tries to determine the price at which it will break
even or make the target return it is seeking.
Answer:
Corporate identity materials help create a corporate identity that the public immediately
recognizes.
Answer:
Style is a larger concept than design. Design simply describes the appearance of a
product.
Answer:
Individual marketing is also known as one-to-one marketing, mass customization, and
markets-of-one marketing.
Answer:
Reach is a measure of how many times the average person in the target market is
exposed to the message.
Answer:
People differ greatly in their readiness to try new products. In each product area, there
are “consumption pioneers,” also referred to as lagging adopters.
Answer:
Advertising involves a personal presentation by the firm’s sales force for the purpose of
making sales and building customer relationships.
Answer:
Inter-market segmentation refers to forming segments of consumers who have different
needs and buying behaviors in a given geographical region.
Answer:
In a subsistence economy, fast growth in manufacturing results in rapid overall
economic growth.
Answer:
Off-price retailers pay regular wholesale prices for their merchandise but maintain low
prices by accepting lower margins and selling higher volume.
Answer:
Customer perceptions of the product’s value set the floor for prices.
Answer:
One valid criticism of the four Ps concept of the marketing mix is that services are not
considered.
Answer:
Advertising specialties include displays and demonstrations that take place at the point
of sale.
Answer:
In customer value-based pricing, price is considered along with all other marketing mix
variables before the marketing program is set.
Answer:
The affordable method of setting advertising budgets takes into consideration the effects
of promotion on sales.
Answer:
Marketers drive traffic to the company Web sites solely through using other online and
digital marketing tools.
Answer:
Excess capacity leads to companies initiating an increase in price.
Answer:
Many large and mature companies get stuck in formulated marketing. They pore over
the latest Nielsen numbers, scan market research reports, and try to fine-tune their
competitive strategies and programs.
Answer:
Internal information is almost always sufficient for making marketing decisions.
Answer:
Vertical conflict occurs among firms at the same level of the channel.
Answer:
When sales of a product drop during the decline stage of the PLC, a company typically
modifies the marketing mix, the product, or the market.
Answer:
In a vertical marketing system, two or more companies at one level join together to take
advantage of a new marketing opportunity.
Answer:
Continuous innovation is a weak response by a company trying to protect its market
share.
Answer:
At the narrowest level, a company can define its competitors as other companies
offering similar products and services to the same customers at similar prices.
Answer:
Good service recovery can turn angry customers into loyal ones.
Answer:
When a manufacturer seeks a market for by-products and accepts a price that covers
more than the cost of storing and delivering those by-products, the manufacturer is able
to reduce the main product’s price to make it more competitive.
Answer:
Market offerings are limited to physical products.
Answer:
Mass marketers can expect consumers to distinguish between commercial message
sources to maintain a clear image of a company and its brands.
Answer:
Dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors, and who might require separate products or marketing
programs is known as market diversification.
Answer:
John assured his venture capitalists an earning of 25-percent return on equity when he
began his IT startup. In order to achieve this result, he will most likely use which of the
following pricing approaches?
A) value-based pricing
B) markup pricing
C) EDLP
D) customer-based pricing
E) target return pricing
Answer:
The most common form of marketing organization is the ________ organization. Under
this organization, an operational specialist heads different marketing activities.
A) geographic
B) product management
C) functional
D) customer management
E) market
Answer:
Which message execution style involves presenting survey data indicating that a brand
is better than other brands?
A) scientific evidence
B) testimonial evidence
C) endorsement
D) technical expertise
E) slice of life
Answer:
Which of the following is true of vertical marketing systems?
A) Producers, wholesalers, and retailers act as a unified system.
B) Channel members have no control over each other.
C) Channel conflict is governed by informal mechanisms.
D) The system is dominated by the consumer.
E) Channel members work independently with no cooperation from other members.
Answer:
Worthington’s Farm is an old poultry farm in Mount Prospect, Illinois. For years, it has
used wooden coops to haul its poultry to the market. The owner of the farm needs to
buy some replacement coops and is considering buying plastic coops that are slightly
more expensive than wooden ones but much easier to clean after use. Consequently, the
owner of Worthington’s Farm ordered 100 customized coops from its regular supplier.
This exemplifies ________.
A) a modified rebuy
B) a new task
C) a straight rebuy
D) derived demand
E) composite demand
Answer:
Titan Inc., an automobile manufacturer based in Utah, recently added two new models
to its existing line of sedans in order to increase profits and satisfy dealers. This is an
example of ________.
A) line filling
B) social marketing
C) market diversification
D) negative brand equity
E) person marketing
Answer:
Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would
encourage other girls to buy the product. This program is an example of ________.
A) societal marketing
B) the production concept
C) the selling concept
D) partner relationship management
E) consumer-generated marketing
Answer:
Which of the following are examples of close competitors?
A) Applebee’s and Subway
B) Taco Bell and T.G.I. Friday’s
C) Pizza Hut and Burger King
D) McDonald’s and Taco Bell
E) McDonald’s and Burger King
Answer:
All of the following are benefits of direct marketing for sellers EXCEPT ________.
A) access to small groups or individuals
B) program flexibility
C) mass reach and immediate returns
D) low cost
E) easy to personalize products
Answer:
The term “media multitaskers” refers to ________.
A) competing brands which use the same media vehicle
B) people who absorb more than one medium at a time
C) media planners who also head the creative department
D) media planners who use more than one advertising medium
E) ad agencies whose clients are competitors of each other
Answer:
________ pricing uses buyers’ perceptions of value as the key to pricing.
A) Customer value-based
B) Cost-based
C) Time-based
D) Markup
E) Target return
Answer:
________ pricing involves charging higher prices on an everyday basis but running
frequent promotions to lower prices temporarily on selected items.
A) High-low
B) Everyday low
C) Cost-plus
D) Break-even
E) Penetration
Answer:
Which of the following is characteristic of online social networks?
A) use of one-way communication techniques
B) negligible adoption rates
C) guaranteed positive results
D) easy methods to measure results
E) user-controlled content
Answer:
________ means that consumers are likely to remember good points made about a
brand they favor and forget good points made about competing brands.
A) Selective attention
B) Selective retention
C) Cognitive dissonance
D) Selective distortion
E) Cognitive bias
Answer:
Which of the following is most likely true about shoppers who prefer to shop at
“lifestyle centers”?
A) They use coupons.
B) They prefer upscale stores.
C) They prefer indoor shopping locations.
D) They rarely dine out in expensive restaurants.
E) They are motivated by deals on last year’s merchandise.
Answer:
Sears opened up department stores in Mexico and Spain, where it found qualified local
manufacturers to produce many of the products it sells. This type of joint venture is
known as ________.
A) joint ownership
B) licensing
C) management contracting
D) indirect exporting
E) contract manufacturing
Answer:
Demand for outboard motors depends on consumers purchasing fishing boats. This is
an example of ________ demand.
A) primary
B) composite
C) derived
D) elastic
E) negative
Answer:
Producers of strong brands sometimes sell to dealers only on the condition that dealers
take some or all of the rest of a product line. This practice is known as ________.
A) product line franchising
B) selective dealing
C) cross merchandising
D) full-line forcing
E) disintermediation
Answer:
Which of the following statements about magazines as an advertising medium is true?
A) Magazines have long ad purchase lead times.
B) Magazines cannot offer high geographic selectivity.
C) Magazines lack credibility.
D) Magazines provide better local coverage than newspapers.
E) Magazines have poor reproduction of images.
Answer:
A company that focuses on customer developments in designing its marketing strategies
and on delivering superior value to its target customers is a ________ company.
A) market-centered
B) cost-centered
C) competitor-centered
D) customer-centered
E) product-centered
Answer:
GamaPix makes point-and-shoot cameras and handycams for amateur photographers
and hobbyists. It also has a separate line of cameras dedicated to professional
photographers. Additionally, it designs separate offers for each segment. Which of the
following marketing strategies does GamaPix most likely use in this instance?
A) mass marketing
B) differentiated marketing
C) individual marketing
D) local marketing
E) direct marketing
Answer:
Refer to the scenario below to answer the following question(s).
Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It
has contracts with several large farms in Riverdale, 80 miles away from the factory, that
agree to sell their produce to Giant Beanstalks. The company’s products are available to
the public only through Greenleaf, a grocery chain with 38 stores in the country.
Roland is the logistics manager of Giant Beanstalks. Which of the following is NOT an
area of responsibility for him?
A) the transportation of the canned vegetables to Greenleaf
B) the storage of the unprocessed vegetables
C) the advertising of the final product
D) product inventory management
E) the packaging of the final product
Answer:
Which of the following is used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople?
A) business plan
B) SWOT analysis
C) POP promotion
D) benchmarking
E) business promotion
Answer:
Which of the following is a potential drawback of using Web-based technologies for
making sales presentations and servicing accounts?
A) Web-based technologies lower the overall efficiency of salespeople.
B) The cost of the technology outweighs the advantages gained through eliminating
travel.
C) Web-based technologies can intimidate salespeople or clients who are unfamiliar
with them.
D) Salespeople who use web-based technologies tend to be less attentive to customer
needs.
E) Online selling usually takes more time than direct selling.
Answer:
Digital catalogs offer all of the following benefits EXCEPT ________.
A) presenting an almost unlimited amount of merchandise
B) offering a broad assortment of presentation formats, including search and video
C) adding and removing products as needed
D) adjusting prices instantly to meet demand
E) touching the product
Answer:
GigaTalk, a U.S. based computer manufacturing company, found that Japanese
commuters had difficulty using standard laptops on crowded rush-hour trains because
while standing, commuters cannot use their laptops. So GigaTalk created a standing
computer. This computer includes a touch screen and small keyboard that can be used
while standing or on the move. This is an example of ________.
A) straight product extension
B) standardized global marketing
C) product adaptation
D) dual adaptation
E) communication adaptation
Answer:
In which stage of the business buying process does a buyer ask users to rate their
satisfaction with the supplied materials?
A) problem recognition
B) performance review
C) supplier search
D) supplier selection
E) order-routine specification
Answer:
Which of the following is a selling decision that may be called into question under the
law?
A) predatory pricing
B) product warranty
C) bait-and-switch advertising
D) promotional allowances and services
E) disclosure of customer rights
Answer:
The number of times an average person in the target market is exposed to a message is
known as the ________ of the message.
A) quantitative value
B) reach
C) frequency
D) exposure rate
E) turnover rate
Answer:
If a buying center is most influenced by authority in the business buying process, it can
be safely concluded that ________ factors have a major influence on its buying
behavior.
A) technological
B) systemic
C) interpersonal
D) strategic
E) economic
Answer:
A decision to position the product on high-performance quality will mean that the
________.
A) seller must charge a higher price to cover higher costs
B) seller must charge a lower price to attract more customers
C) producer must step down production
D) marketer must boost derived demand in the market
E) break-even volume will be fairly low
Answer:
Shoe Trends, a company that manufactures formal shoes for men and women, offers to
give its customers $10 for an old pair of shoes when they buy a new pair. In essence,
they’re reducing the price of the new shoes by $10. What is this type of price adjustment
called?
A) functional discount
B) captive product pricing
C) seasonal discount
D) trade-in allowance
E) by-product pricing
Answer:
________ may help shape product specifications, but their major role is to select
vendors and to negotiate.
A) Gatekeepers
B) Deciders
C) Buyers
D) Influencers
E) Users
Answer:
The simplest way to enter a foreign market is through ________.
A) joint venturing
B) direct investment
C) exporting
D) joint ownership
E) contract manufacturing
Answer:
Which of the following is true with regard to cash cows?
A) They are high-growth, high-share businesses or products.
B) They can be used to help finance the company’s question marks and stars.
C) They require significant cash to maintain market share.
D) They are low-share businesses and products.
E) They do not promise to be large sources of cash.
Answer:
Discuss the international marketing objectives and policies a company should try to
define before going abroad.
Answer:
Discuss direct and indirect exporting. What are the advantages of exporting?
Answer:
Describe the three types of appeals that marketers use.
Answer:
You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How
might you go about creating brand experiences for your customers?
Answer:
What should the price steps of product line pricing take into account?
Answer:
List some important factors that companies need to consider when choosing a
market-targeting strategy.
Answer:
How has the implementation of the National Do Not Call Registry changed telephone
marketing?
Answer:
What does the concept of integrated logistics management advocate?
Answer:
How do salespeople qualify prospects?
Answer:
Explain integrated social media marketing.
Answer:
Describe the types of products are intensively distributed and provide examples.
Answer:
Why must marketers guard against stereotypes when using age and life-cycle
segmentation?
Answer:
Discuss direct marketing.
Answer:
Why should a salesperson set call objectives?
Answer:
Define marketing planning. What are the contents of a marketing plan?
Answer:
Describe the five sustainable marketing principles.
Answer: