The break-even volume is the point at which ________.
A) the total revenue and total cost curves intersect
B) demand equals supply
C) the production of one more unit will not lead to increase in demand
D) the company can pay off all its long-term debt
E) a firm exceeds the sales forecast
Business buyer behavior refers to the ________.
A) buying behavior of consumers who buy goods and services for personal
consumption
B) buying behavior of the organizations that buy goods and services for use in the
production of other products and services that are sold, rented, or supplied to others
C) buying behavior of consumers who rely on small retailers for the regular supply of
provisions
D) decision process by which business buyers determine which products and services
their organizations need to purchase
E) strong affinity of businesses for value-for-money deals
Conflict that occurs between different levels of the same marketing channel is known as
________ conflict.
A) horizontal
B) vertical
C) multitiered
D) equilateral
E) communal
Marketers respond to charges of high advertising and promotion costs that
unnecessarily increase retail prices, by arguing that advertising and promotion
________.
A) support consumerism
B) standardize the product
C) add quality to the product
D) provide information about a product
E) help increase competition in the market
A ________ consists of the activities an individual is expected to perform, according to
the people around him/her.
A) motive
B) role
C) lifestyle
D) life cycle
E) perception
________ is a management approach that involves developing strategies that both
preserve the environment and produce profits for the company.
A) Aesthetic consumerism
B) Profitable environmentalism
C) Environmental sustainability
D) Sustainable ecology
E) Corporate marketing
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
Which of the following involves adjusting prices to account for the physical location of
customers?
A) location-based pricing
B) geographical pricing
C) domestic pricing
D) interior pricing
E) captive pricing
When theaters vary seat prices due to audience preferences for seats in coveted rows,
they use ________ pricing.
A) customer-segment
B) location-based
C) time-based
D) product line
E) captive product
Demographic characteristics, geographic characteristics, economic factors,
sociocultural factors, and political and legal factors all help a company ________.
A) determine a market’s potential
B) determine a country’s degree of globalization
C) evaluate its marketing objectives
D) evaluate its value delivery network
E) determine a country’s income distribution
________ 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
Which of the following is a positive aspect of a competitor-centered company?
A) It carries out its own customer relationship strategy.
B) It bases its own moves on competitors’ moves.
C) It searches out competitors’ weaknesses.
D) It concentrates its resources on delivering superior value to target customers.
E) It ends up seeking innovative ways to create more value for customers.
In the context of identifying competitors’ strategies, the more that one firm’s strategy
resembles another firm’s strategy, the more likely the two firms are to ________.
A) merge
B) compete
C) globalize
D) form a partnership
E) become market leaders
Which of the following is one of the four major communication functions?
A) coordination
B) distribution
C) noise
D) response
E) preference
While using integrated marketing communications, the communications process should
start with a(n) ________.
A) advertising strategy
B) competitive-parity analysis
C) long-term public relations plan
D) audit of all potential customer touch points
E) strategy for implementing a social media presence
If a service employee provides the service, then the employee becomes a part of the
service. This is an example of service ________.
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity
The relationship between the consumer’s expectations and the product’s ________
determines whether the buyer is satisfied or dissatisfied with a purchase.
A) perceived performance
B) brand personality
C) market reach
D) consumer market
E) market share
________ segments are conceptually distinguishable and respond differently to
different marketing mix elements and programs.
A) Complex
B) Measurable
C) Competitive
D) Differentiable
E) Homogeneous
Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and
a large contract from Elmore Distributors. But after two years, the maker of novelty
pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of
wooden writing utensils with customized engravings. Specialty shops loved to display
the products in their fancy, lighted showcases, but such specialty shops alone were not
profitable. Ruben Delgado established a brand name, known merely as Delgado, and
decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and
multiple-cartridge pens that write in different colors. He even added a line of various
grades of personalized stationery and business cards. Perhaps Ruben’s biggest added
touch, however, was the addition of two salespeople who would work to explain the
diverse array of products offered by Delgado, as well as nurture existing accounts.
“We make an excellent product,” Ruben Delgado stated, “and we honor a good
guarantee on everything we sell. But let’s face it—we face hundreds of competitors! We
need Delgado representatives out there to help prospects understand what they should
demand in something as simple as a writing tool.” The Delgado brand was
fast-becoming synonymous with top-notch customer service. Part of the purchase
package brought personal visits from the Delgado representative, before the purchase
and long after.
The new felt-tip pens, multiple-cartridge pens, and quills offered by Ruben Delgado are
examples of ________.
A) product line filling
B) multibranding
C) megabranding
D) product line inconsistencies
E) co-branding
Which of the following is true of channel members?
A) They act independent of each other.
B) They play specialized roles in the channel.
C) They are not accountable to other channel members.
D) They play generalized and interchangeable roles in the distribution process.
E) Their competence and cooperation don’t affect the company’s image or profits.
Which of the following statements is true of the selling concept?
A) It requires minimum promotion efforts.
B) It creates long-term, profitable customer relationships.
C) It takes an outside-in perspective.
D) It is typically practiced with unsought goods.
E) It follows the customer-centered sense-and-respond philosophy.
________ are industrial products.
A) Major appliances
B) Laundry detergents
C) Life insurance policies
D) Office supplies
E) Legal services
An attractive product idea must be developed into a ________.
A) concept alternative
B) product concept
C) brand personality
D) brand placement
E) product strategy
All of the following organizations are likely part of the institutional market EXCEPT
________.
A) LaGrange Community Hospital
B) Worthampshire Prison
C) Lancaster Real Estate Company
D) Water Street Nursing Home
E) Millersville Community College
Savings for You, a discount retail chain, is highly competitive. When entering a new
market, Savings for You often cuts prices so deeply that it sells below costs, effectively
pushing smaller companies with less purchasing power out of the market. Savings for
You is most likely guilty of ________.
A) market skimming
B) price fixing
C) deceptive pricing
D) price collusion
E) predatory pricing
Refer to the scenario below to answer the following question(s).
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small,
seaside motel to a thriving year-round resort in just a few years. Atop a cliff
overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during
summer, but then faced a tremendous downturn in business during winter. “But, given
the established industries in the nearby towns, very little year-round competition, and
our close proximity to Portland,” Carol added, “I couldn’t understand why seasonality
had to hit Seagull Terrace so hard!”
So Carol spent her first winter devising a new marketing plan. She put together a
promotional package designed to attract business travelers year-round. Carol’s plan also
involved a seasonal promotional gimmick—to be implemented from early winter to late
spring—that would attract the same numbers as the large summer crowd. Her idea
worked! During her second winter, Carol greeted numerous business travelers—both
satisfied repeat guests as well as new guests who had been snagged by her promotional
appeals.
“We still have a long way to go,” Carol admitted. “Our delicatessen offers entrees that
are a part of the local cuisine, but we’d like to expand that. We provide health club
privileges off-site, but we’d like to eventually provide our own. These are goals I hope
to achieve in a few years. Our first project, however, included a renovation of our guest
rooms and I’m quite proud of the results.” Carol then added, “Actually there are so
many possibilities. With an indoor pool area, I will eventually offer weekend getaways
throughout winter.”
Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool
area are examples of the ________ concept.
A) selling
B) marketing
C) product
D) production
E) societal marketing
How do marketers respond to charges of planned obsolescence?
A) Consumers dislike constant style changes.
B) It promotes the all-American value of consumerism.
C) The product will eventually wear out anyway.
D) Most consumers are materialistic.
E) Consumers get tired of old goods.
Which of the following is a true statement about the benefits of RFID technology?
A) It allows firms to track products and customers at various points in the distribution
channel.
B) The chips are used to track shipments but not individual items.
C) The chips do not risk invading people’s privacy.
D) Sharing of data decreases the buying experience for consumers.
E) The technology will be available for the foreseeable future, allowing companies to
fully invest in its capabilities.
Most standard portfolio analysis methods evaluate SBUs on the ________.
A) potential for niche or global marketing
B) degree of product differentiation
C) strength of the market or industry position
D) accessibility to rural markets
E) number of successful business acquisitions
Which of the following is true about the concentrated marketing strategy?
A) Companies that rely on a few segments for all of their business will suffer if a
segment turns sour.
B) Concentrated marketing is not profitable for most firms.
C) Niche marketing involves few risks for most firms.
D) Concentrated marketing involves going after a small share of a large market.
E) The Internet has limited the use and benefits of niche marketing.
Which of the following terms refers to a 30-minute television advertising program that
markets a single product?
A) social media
B) digital catalog
C) telemarketing
D) blog
E) infomercial
As a result of the great success of corporate chains, many independent stores choose to
band together in either a voluntary chain or a ________.
A) factory outlet
B) retailer cooperative
C) wholesale club
D) warehouse club
E) convenience cooperative
A manufacturing plant is designed to produce 2000 flat-screen TVs per day. But
demand is higher than that. If the company tries to increase its production to 2500 TVs
per day, the average costs will ________ because ________.
A) decrease; the plant becomes more efficient
B) stay the same; the plant becomes more efficient
C) decrease; the plant becomes inefficient
D) increase; the plant becomes more efficient
E) increase; the plant becomes inefficient
Which of the following is NOT a market-oriented business definition?
A) “We empower customers to realize their dreams.”
B) “We make high-quality consumer food products.”
C) “We sell success and status.”
D) “We create the Hilton experience.”
E) “We bring innovation to every home.”
Marketing ________ addresses the what and why of marketing activities, while
marketing ________ addresses the who, where, when, and how.
A) analysis; planning
B) planning; implementation
C) implementation; planning
D) organization; implementation
E) control; planning