Which of the following statements is true of thirdstage multinational companies?
a. They sell products only in one country.
b. Their top executives and core corporate functions are in different countries.
c. They operate an entire line of business in another country.
d. They set up foreign subsidiaries to handle sales in one country.
When a purchase decision involves uncertainty, which of the following statements best
describes the price–quality relationship?
a. Consumers perceive lowerpriced goods to be more longlasting than higherpriced
goods.
b. Consumers believe that higherpriced goods are manufactured with materials or
ingredients of better quality.
c. Consumers lack information about the quality of lowerpriced goods due to poor
advertising.
d. Consumer demand for higher priced goods remains unchanged even if product
quality declines.
Massmarketing efforts will continue to be used by marketers:
a. because consumers have more time to make purchase decisions.
b. to gather detailed information on customers, which is not possible in direct
marketing.
c. to remind consumers of a product.
d. because they allow marketers to target customers with extremely relevant offerings.
Tele Tales, a radio and television broadcasting company, allots two hours of its
combined air time to promoting cautionary messages about tobacco and alcohol abuse.
Tele Tales does not receive any sponsorship for running these advertisements. In this
context, Tele Tales is most likely engaging in a sales promotion activity.
a. True
b. False
Zen Electronics has taken a penetration pricing approach to launch its new line of
mobiles. Therefore, Zen is most likely to ______.
a. initially charge a relatively low price per product
b. introduce the line at a relatively high price per product
c. wait until the current competition weakens
d. join the competition at its peak
Which of the following refers to a specific version of a product that can be designated
as a distinct offering among an organization’s products?
a. Product item
b. Unsought product
c. Specialty product
d. Consumer product
Which of the following statements is true of the deontological theory and the utilitarian
ethical theory?
a. The deontological theory considers the welfare of the people, while the utilitarian
ethical theory does not.
b. The deontological theory compares a current ethical dilemma, while the utilitarian
ethical theory is a belief in timeandplace ethics.
c. The deontological theory states that people should adhere to their duties when
analyzing an ethical dilemma, while the utilitarian ethical theory is founded on the
ability to predict the consequences of an action.
d. The deontological theory states that the truth of a moral judgment is relative to the
judging person or group, while the utilitarian ethical theory is a character trait valued as
being good.
The social factors that affect the consumer decision journey are:
a. lifestyle, personality, age, and family.
b. reference groups, opinion leaders, and family.
c. cultural values, subculture, and social class.
d. perception, motivation, beliefs, and attitudes.
If an advertiser wants to enhance the sales of a specific good or service, institutional
advertising should be used.
a. True
b. False
In the context of communication process, which of the following serves to transmit the
message?
a. Facial gestures
b. Radio
c. Newspaper
d. All of the above
After being influenced by frequent advertisements, Jeremy buys a new cell phone.
However, he discovers that the new cell phone does not offer the features he expected.
This scenario illustrates that _____ of the purchase is less than Jeremy’s expectations.
a. the perceived value
b. the actual value
c. utilitarian value
d. hedonic value
Which of the following statements is true of the exchange utility?
a. It refers to the elements of the composition and appearance of a product that make it
desirable.
b. It refers to the increase in customer satisfaction gained by making a good or service
available at the appropriate time.
c. It refers to the usefulness of a good or service as a function of the location at which it
is made available.
d. It refers to the increased value of a product that is created as its ownership is
transferred.
Companies at the fourth stage of developing their global business:
a. set up foreign subsidiaries to handle sales in one country.
b. operate in one country and sell into others.
c. operate an entire line of business in another country.
d. have their top executives and core corporate functions located in different countries.
_____ occurs when two brands receiving equal treatment (in the context of an
advertisement) borrow from each other’s brand equity.
a. Ingredient branding
b. Cooperative branding
c. Complementary branding
d. Family branding
The price component of a marketing mix is:
a. a competitive weapon for companies.
b. the basis for achieving a product differentiation advantage.
c. the starting point of the marketing mix.
d. the least flexible element of the marketing mix.
Sinesia is a country that has very few sources of potable water. Given this information,
which of the following is most likely to happen?
a. Sinesia’s international marketing will remain unaffected because petroleum is the
only factor that affects international marketing.
b. Sinesia will remain an importer of foodstuffs.
c. Sinesia will become an attractive target for military intervention. Sinesia will not be
having absolute water scarcity.
d. Sinesia’s wealth will equal that of countries with rich sources of water.
Ryan and Ben are best friends. Ryan regularly runs marathons and is a member of the
Marathon Runners Club at his university. Ben also wants to join the club, but he is not a
very strong runner. Ben decides to start running every day so that he can participate in
marathons and become a member of the club. For Ben, the Marathon Runners Club can
be categorized as a(n) _____.
a. interest reference group
b. primary membership group
c. aspirational reference group
d. non aspirational reference group
_____________ is an error that occurs when there is a difference between the
information desired by the researcher and the information provided by the measurement
process.
a. Frame error
b. Sample error
c. Measurement error
d. Random error
_____ is a price tactic in which different customers pay different prices for essentially
the same merchandise bought in equal quantities.
a. Onepart pricing
b. Price lining
c. Flexible pricing
d. Price skimming
LaPizza is a restaurant that recently implemented a new system to identify and gather
information about its regular customers. It rewards these customers by giving them gift
coupons and cash prizes. This practice is an example of _____.
a. organizational optimization
b. profit maximization
c. total quality management
d. customer relationship management
The 80/20 principle holds that 20 percent of all customers generate 80 percent of the
demand. Although the percentages usually are not exact, the general idea often holds
true. Which consumer market segment is described here?
a. Benefit segmentation
b. Geographic segmentation
c. Market segmentation
d. UsageRate segmentation
A newproduct strategy links the newproduct development process with the objectives of
the marketing department, the business unit, and the corporation.
a. True
b. False
Environmental scanning refers to the process of collecting and interpreting information
about forces, events, and relationships in the external environment that may affect the
future of the organization or the implementation of the marketing plan.
a. True
b. False
A _____ is a discount store that carries a vast depth and breadth of product within a
single product category.
a. supercenter
b. specialty discount store
c. warehouse club
d. fullline discount store
Which of the following refers to private label manufacturing by a foreign company?
a. Licensing
b. Contract manufacturing
c. Joint venture
d. Direct foreign investment
Internal marketing is more important for goods manufacturers than service firms.
a. True
b. False
According to the pyramid of corporate social responsibility, which component involves
being a good corporate citizen, contributing resources to the community and improving
the quality of life?
a. Philanthropic responsibilities
b. Ethical responsibilities
c. Legal responsibilities
d. Economic responsibilities
Social news sites combine the fun of social networking with the utility of locationbased
global positioning system technology.
a. True
b. False
At the product development stage, it is premature to explore the feasibility of
manufacturing the product at an acceptable cost.
a. True
b. False
Which of the following best defines the term “touch points”?
a. Storage of customer information in a central location that is accessible to all company
departments
b. The points where a salesman exchanges information with the company and the
company doesn’t take interest.
c. Areas of a business where customers have contact with the company and data might
be gathered
d. Customized product or service offerings for different customer segments