Archives: Quiz

Personal channel of communication includes direct contact, such as a sales force or salespeople in a retail channel. Marketing managers’ interactions with suppliers are treated as external transactions. Answer: TRUE The large advantage of company- owned stores is that the […]

The general types of market research data and the set of techniques used in global market research vary from country to country. Developing financial arrangements such as commissions and higher margins is a way to resolve channel conflicts. Answer: TRUE […]

Companies discovering that customers are the best source of new-product ideas is called the “democratizing” of innovation. A “marketing-driven” organization can quickly react to changes in the marketplace. Answer: FALSE Customers who fall under the hostage group exhibit high switching […]

Situational factors used for industrial market segmentation include the customers delivery speed needs and order size needs. Packaging can be an important differentiator. Answer: TRUE Loyalty programs are also known as facultative programs. Answer: FALSE A broker assumes title risk […]

Telemarketing is cheaper than direct mail. Franchising works particularly well when the service can be standardized across disparate geographic locations. Answer: TRUE Panel conditioning refers to a problem that the panel members may not remain on the panel throughout the […]

A typical marketing planning horizon is five years. Credence attributes refers to the characteristics where the quality cannot be determined even after consumption. Answer: TRUE Onstage contact points refer to contact points that are observable to the customer. Answer: TRUE […]

Creative selling involves developing new customers and maintaining old ones by investing a considerable amount of time in understanding buyers needs and wants. When the corporate brand is carried with individual product names it is known as co-branding. Answer: FALSE […]

Customers who see the benefits of interdependency between the buyer and the seller are known as transaction buyers. Good selling skills can be taught. Answer: TRUE High awareness among the target audience is only a necessary but not a sufficient […]

Price promotions can dilute brand equity. The members that participate in brainstorming sessions to generate new product ideas are generally the customers. Answer: FALSE FMCG products need more extensive information search than durable goods. Answer: FALSE R&D and marketing personnel […]

According to the VALS system developed by SRI International, survivors are cautious customers. A major disadvantage of the marketing concept is that it is limited to current, expressed needs. Answer: FALSE The key to using customer service to develop long-term […]

Global marketing is based on a systematic analysis of customer behavior in each market. In Nash equilibrium, no manager wants to unilaterally change his or her strategy. Answer: TRUE The longer a customer is retained, the longer the base profit […]

The basic component of the core strategy is the value proposition. Factor analysis is a multiple regression statistical procedure. Answer: FALSE Clinical research is generally used to generate hypotheses for further research, often quantitative. Answer: FALSE When a firm markets […]

A key feature of the marketing plan is that it is written. Displays and other company-paid advertisements inside a store are called point-of-purchase advertising. Answer: TRUE Typically, penetration strategies which involve entering the market with low price are employed by […]

One of the major functions of marketing research is monitoring current marketing programs. As high-tech products mature, the marketing strategies employed are very different from those for other products in the mature or decline stage of the life cycle. Answer: […]

Differences between nations are often less than differences within nations. Strategically pricing below customer value is often called pricing to value. Answer: FALSE Economists often use cross-elasticity of demand as an indicator of substitutability. Answer: TRUE Marketing can create and […]

The effectiveness of a direct-mail campaign is easy to evaluate because the response comes quickly after the date of the promotion, or not at all. Amway, Mary Kay, and Tupperware use a multilevel or network marketing distribution system. Answer: TRUE […]

In-depth study of consumer consumption through interviews and observing behavior is known as ethnographic research. Market segmentation breaks mass markets into segments that have different buying habits. Answer: TRUE Measuring pupil dilation is a method used in readability tests. Answer: […]

An example of a modified rebuy situation would be the purchase of paper clips for a company. Mass customization is also known as one-to-one marketing. Answer: TRUE Sampling is less effective than coupons, advertising, and games or contests in helping […]

Screening tests are used to refine the concept statements. Sales quotas are specific sales goals that salespeople are required to meet. Answer: TRUE In a new task purchase situation, the current supplier is in an advantageous position. Answer: FALSE The […]

Apostle customers are those who are completely satisfied and have a high loyalty and are very supportive of the company. The expenditure incurred for product-related advertising and promotion is an example of direct fixed costs. Answer: TRUE Sales promotion can […]

Tangibility of services can be increased by using sampling or other promotions. A middleman who buys from manufacturers and sells to retailers is known as facilitating agent. Answer: FALSE One approach to evaluating trade promotions is tracking the before-and-after results. […]

The importance of various marketing-mix elements varies over the product life cycle. Psychographics divide the total market in a geographic area into segments based on activities, interests, values, opinions, personality characteristics and attitudes using statistical procedures. Answer: TRUE Competitive distribution […]

The Delphi method of forecasting is implemented by forming a jury of experts from a diverse population. A merchant establishment operated by a concern that is engaged primarily in buying, taking title to, usually storing and physically handling goods in […]

B-to-B companies spend a higher percentage of their communications money on mass media like TV advertising and much less on print advertising than consumer-products companies. The salespersons motivation is a basic force behind how much effort he or she devotes […]

Research has found that, similar to human relationships, people find comfort and satisfaction with brands to which they are loyal. Advertising has traditionally been defined as any paid or unpaid form of personal communication about an organization, product, service, or […]

The concept of global marketing is similar to market or customer orientation. Competitor targets must be identified so that marketing managers know which brands or companies offer the most likely competition for the identified customer. Answer: TRUE Operating variables used […]

An indirect channel appears to be better than a direct channel when product customization is important. Public relations (PR) has more credibility than advertising. Answer: TRUE Customer relationship management (CRM) is often used in the context of relationships that are […]

Vertical marketing occurs across industries, particularly where the needs and uses are similar. Internet is an example of a nonpersonal channel of communication. Answer: TRUE Off-invoice allowances are payments to store chains for placing a product on a shelf. Answer: […]

Because agents are compensated only when they sell, based on a negotiated commission rate, the channel costs become fixed costs rather than variable. For consumer-product companies that are the heaviest users of advertising and promotion, there has been a significant […]

Prestige pricing entails giving most of the value to the customer and retaining a small margin. When the rugby approach is used for new product development, the project teams usually consist of members with different functional specializations and personalities. Answer: […]

In virtual shopping, the consumer can use the simulation to view (on a screen) shelves stocked with any kind of product. Competitor analysis has an unsavory reputation due to many interpreting it as corporate spying. Answer: TRUE A product class […]

According to Abraham Maslow, physiological needs are basic human needs. More than with physical goods, price is often used as an indicator of service quality. Answer: TRUE “Sales promotion” involves boosting sales in short term. Answer: TRUE One of the […]

Brands increase information search costs. Price fluctuations in the Internet are slow compared to price increases offline. Answer: FALSE Manufactured products are low in search attributes. Answer: FALSE For industrial products and services, the marketing manager can determine the customer […]

Ubiquitous marketing department concept gives people who are not in marketing the sense that they are also responsible for performing marketing activities. Marketing driven organizations use push-the-catalogue approach to marketing. Answer: FALSE Straight salary is often used for new salespeople, […]

Many products are repositioned for a new use or benefit. Over-engineered products will contain features that customers do not need or want. Answer: FALSE The largest amount of market development funds is spent on slotting allowances. Answer: TRUE Lifetime customer […]

An analysis in which the strengths and weaknesses of competitors and their current and likely future strategies are examined is known as competitor analysis. Telemarketing had the highest response rate of any other direct marketing method. Answer: TRUE Market development […]

an installment note calling for equal total payments each period will result in an interest portion that decreases in each successive period. firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. Answer: false […]

A tax credit allows an entity to reduce the taxes paid to the home government by the amount of taxes paid to the foreign government. firms entering a market via a wholly owned subsidiary must bear all the costs and […]

a multinational firm may need to delegate marketing functions to national subsidiaries to be responsive to local differences in distribution channels. decentralized production is favored if differences between countries in factor costs have a substantial impact on the costs of […]

ex-im bank has a direct lending operation under which it lends dollars to foreign borrowers. export tariffs are far less common than import tariffs. Answer: true export tariffs are far less common than import tariffs. the value an international business […]

by placing tariffs on imported goods, governments can increase the cost of exporting relative to foreign direct investment and licensing. the level of output at which most plant-level scale economies are exhausted is referred to as the minimum efficient scale […]

firms pursuing a multipoint pricing strategy on an international scale will price low worldwide in an attempt to build global sales volume as rapidly as possible. Supporters of floating exchange rates claim that trade deficits are determined by the balance […]

social responsibility refers to the idea that businesspeople should favor decisions that have both good economic and social consequences. products such as refined sugar, certain bulk chemicals, paint, and petroleum products have low value-to-weight ratios. Answer: true products such as […]

democracy is a form of government that prohibits opposing political parties. for privatization to work, it must also be accompanied by a more general deregulation and opening of the economy. Answer: true for privatization to work, it must also be […]

political freedom is one of the measures used by the human development index (hdi) to measure the quality of human life in different nations. heckscher-ohlin theory supports the case for unrestricted free trade between nations. Answer: true the theories of […]

bringing managers together in one location for extended periods and rotating them through different jobs in several countries helps the firm build a formal management network. if the straight-line method of amortization is used, the amount of unamortized premium on […]

The great virtue claimed for a pegged exchange rate is that it imposes monetary discipline on a country and leads to low inflation. a geocentric approach tends to weaken local responsiveness. Answer: false the multinational composition of the management team […]

Moral hazard arises when people behave recklessly because they know they will be saved if things go wrong. the social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship. Answer: false the communists believed that […]

unions bargaining power is largely derived from their ability to threaten to disrupt production. licensing limits the firms ability to realize experience curve and location economies by producing its product in a centralized location. Answer: true licensing limits the firms […]

A company does not need a large size to facilitate, and benefit from, the globalization of markets. the judges of the european court of justice are required to act as representatives of national interests, rather than as independent officials. Answer: […]