Jack does not buy his shoes from any company other than Unparalleled, a leading shoe
manufacturer, because of the comfort they offer and their unique style features. Jack is
in the brand insistence stage of brand loyalty.
a. True
b. False
You and a couple of your college roommates have decided to launch an online business
that will sell college sweatshirts from colleges and universities around the world.
Customers would be able to logon to your site and see a full catalog of college
sweatshirts emblazoned with the name, logo and mascot of over 2,000 colleges and
universities from all over the world.
Which of the following statements best describes the type of Internet presence your
company would have in order to sell these sweatshirts?
a. An intranet
b. An electronic storefront
c. A blog
d. A corporate website
e. A private exchange
The production, promotion, and reclamation of environmentally sensitive products is
called _____.
a. social media marketing
b. green washing
c. demarketing
d. green marketing
Notforprofit organizations have numerous organizational objectives other than
profitability due to their diversity.
a. True
b. False
According to Abraham Maslow’s hierarchy of needs, human beings have five levels of
needs they are constantly seeking to satisfy. Marketers who are knowledgeable of the
hierarchy of needs are able to manufacture products accordingly, and develop
marketing strategies that help make consumer purchase decisions easier.
Amos is in the market for a luxury car and has been researching different brands, their
costs, and expenses associated with maintaining these vehicles. The luxury car
commercials he has seen deal with social status, feeling good, and the esteem needs of
potential consumers. For the most part, all of the brands he was considering were
similar until he saw an ad for a luxury car company that was highlighting efficiency
rates of the car’s airbags and seat belts in crash control tests. Amos decided to buy this
company’s all wheel drive.
Which of the following statements can be inferred from the scenario provided above?
a. Amos’s decision to buy a luxury car was an impulsive purchase decision.
b. Amos was able to reach self-actualization with his purchase of the luxury car.
c. Amos’s decision about which car to purchase was ultimately based on his self esteem.
d. Marketers who consider Maslow’s hierarchy of needs in their advertising campaigns
sell more product.
e. A consumer purchase decision may be informed by more than one aspect of
Maslow’s hierarchy of needs.
A quota sample differs from a stratified sample, as in a quota sample, researchers select
subsamples by some random process.
a. True
b. False
First-level relationship marketing programs typically rely on pricing and other financial
incentives to motivate the customer into a buying relationship with a vendor.
a. True
b. False
_____ involves creating and distributing relevant and targeted material to attract and
engage an audience, with the goal of driving them to a desired action.
a. Content marketing
b. Social media monitoring
c. Crowdsourcing
d. Social bookmarking
If a business refuses to comply with a request by the _____, the agency can issue a
ceaseanddesist order, which gives a final demand to stop an illegal practice.
a. Environmental Protection Agency
b. Consumer Product Safety Commission
c. U.S. Department of Justice
d. Federal Trade Commission
The cost assessed when a product is moved from one profit center within a firm to
another is called _____.
a. competitive bidding
b. penetration pricing strategy
c. list price
d. trade discount
e. price flexibility
f. promotional pricing
g. loss leader
h. cannibalization
i. bundle pricing
j. odd pricing
k. transfer price
l. profit center
m. skimming pricing strategy
n. competitive pricing strategy
o. pricing policy
p. market price
q. noncumulative quantity discount
r. step out
s. bot
t. cash discount
Team selling offers a distinct competitive advantage in sales situations that call for
detailed knowledge of new, complex, or rapidly changing technologies.
a. True
b. False
Consumer perceptions of superiority pay off in the firm’s ability to raise prices without
losing market share.
a. True
b. False
_____ is the loss of sales of an existing product due to competition from a new product
in the same line.
a. competitive bidding
b. penetration pricing strategy
c. list price
d. trade discount
e. price flexibility
f. promotional pricing
g. loss leader
h. cannibalization
i. bundle pricing
j. odd pricing
k. transfer price
l. profit center
m. skimming pricing strategy
n. competitive pricing strategy
o. pricing policy
p. market price
q. noncumulative quantity discount
r. step out
s. bot
t. cash discount
General product categories, specific product lines, specific products within lines, and
the depth and width of its assortment are factors considered by retailers while
developing their:
a. product liability strategy.
b. interactive marketing policy.
c. customer service program.
d. merchandising strategy.
As the CEO of a corporation with customers in every part of the globe, you hope to see
more of the world’s nations become members of the WTO. This would benefit firms
like yours because the World Trade Organization:
a. Serves as a forum for trade negotiations
b. Mediates trade disputes
c. Makes non-binding but highly respected decisions
d. Provides technical assistance to developing countries
e. Monitors national trade policies
Marketing theory would define Starbucks, Caribou Coffee, and Dunkin’ Donuts as
indirect competitors because some coffee drinkers are particular about the brands they
purchase.
a. True
b. False
Sales offices located closer to the firm’s customers help limit selling costs and support
effective customer service.
a. True
b. False
The use of big data has brought about little change in the way companies conduct
marketing research.
a. True
b. False
When Jonathan was contacted by his insurance firm regarding certain medical claims
he had made recently, he realized that someone else had used his name and insurance
information without his consent to make false claims for medical services and goods.
Which of the following acts will enable Jonathan to take action against the person who
stole his personal information?
a. The Clayton Act
b. The Identity Theft Enforcement and Restitution Act
c. The Sherman Antitrust Act
d. The Digital Millennium Copyright Act
In the maturity stage, heavy promotional outlays emphasize any differences still
separating competing products, and brand competition intensifies.
a. True
b. False
In relationship marketing, employees serve customers within an organization as well as
outside it.
a. True
b. False
A contractual arrangement in which a wholesaler or retailer agrees to meet the operating
requirements of a manufacturer is called a(n) _____.
a. distribution channel
b. forward integration
c. logistics
d. dual distribution
e. direct selling
f. intensive distribution
g. selective distribution
h. exclusive distribution
i. tying agreement
j. backward integration
k. administered marketing system
l. corporate marketing system
m. contractual marketing system
n. private carriers
o. materials handling system
p. franchise
q. common carriers
r. upstream management
s. suboptimization
t. downstream management
Promotion that seeks to develop initial demand for a good, service, organization,
person, place, idea, or cause is called _____.
a. noise
b. advertising
c. promotion
d. publicity
e. sales promotion
f. guerrilla marketing
g. posttesting
h. split runs
i. cooperative advertising
j. marketing public relations
k. media scheduling
l. pretesting
m. informative advertising
n. persuasive advertising
o. retail advertising
p. missiles
q. cross-promotion
r. interactive advertising
s. sponsorship
t. institutional marketing
A firm that manufactures TVs sells them at prices of $750, $1,000, and $1,250. The
manufacturer will return $75, $100, or $125 respectively, by mail, to those who
purchase its brand of TV. This reduction in price is an example of a:
a. promotion allowance.
b. trade-in.
c. rebate.
d. quantity discount.
If a company wants to concentrate its resources on its core business, it may be wise to
outsource support functions.
a. True
b. False
What are the subfunctions of physical distribution?
a. Buying, selling, and financing
b. Risk taking and market research
c. Storing and transporting
d. Standardizing and grading
_____ involves measuring quality by comparing performance against industry leaders.
a. Benchmarking
b. Social referencing
c. Satisficing
d. Social loafing
The technological environment that a company operates in represents all the discoveries
made via science, inventions and innovation that impacts the firm’s marketing strategy.
Which one of the following statements is false regarding the impact of technology on
the firm’s marketing endeavors?
a. Technology can lead to new goods and services
b. Technology can improve existing products and customer service
c. Technology can reduce prices through new production and distribution methods
d. Since it is equally accessible by all competitors, it offers limited competitive
advantages
e. It can help address social concerns
According to Kurt Lewin’s theory of human behavior, the personal factors affecting
consumer behavior are one’s attitudes, learning, and perception.
a. True
b. False
_____ refers to the movement of products through more than one channel to reach the
firm’s target market.
a. distribution channel
b. forward integration
c. logistics
d. dual distribution
e. direct selling
f. intensive distribution
g. selective distribution
h. exclusive distribution
i. tying agreement
j. backward integration
k. administered marketing system
l. corporate marketing system
m. contractual marketing system
n. private carriers
o. materials handling system
p. franchise
q. common carriers
r. upstream management
s. suboptimization
t. downstream management
You are watching an episode of a new game show that tests contestants’ knowledge by
giving them phrases they must respond to with a question.
The following marketing-related phrase comes up in the bonus round of the game:
“It’s an informed guess or assumption about a problem or a specific event. It sets the
stage for in-depth research and clarifies what the researcher needs to test.”
The contestant’s response should be
a. What is a hypothesis?
b. What is a plausible conclusion?
c. What is an objective statement?
d. What is a qualitative data point?
e. What is a conclusive research finding?