Which of the following protects the consumer by exerting legal, moral, and economic
pressures on business and government?
a. Consumerism
b. Corporate branding
c. Socialism
d. Capitalism
Companies test market their new–product offerings to measure consumer reactions
under normal competitive conditions.
a. True
b. False
You are contemplating starting a business in the next few months. You have expertise in
both goods-based and services-based businesses, but aren’t sure which route to take.
You are, however, determined to develop jobs for the small factory town in which you
grew up.
Required:
Based on what you know about the U.S. business economy, which of the following
approaches would you take?
a. start a goods-based business because the demand is higher
b. start a goods-based business because it is cheaper to maintain
c. start a services-based business because demand has increased exponentially
d. start a services-based business because such businesses are expected to account for
18 million new jobs by 2020
e. start a goods-based business because such businesses are expected to account for
35% of new job opportunities in the next 10 years
A jewelry store organizes a jewelry design contest to promote the launch of its new line
of charm bracelets. This is an example of:
a. advertising.
b. sales promotion.
c. direct marketing.
d. personal selling.
If potential buyers can observe an innovation’s superiority in a tangible form, the
adoption rate increases.
a. True
b. False
Sunshine Cereals has been in the market for seven decades. They attribute their success
to maintaining an almost stable product price in the face of inflation as well as stiff
competition from rival firms. The management at Sunshine Cereals knows that any
substantial increase in product price would translate into loss of sales as consumers are
used to paying a specific price for their cereals. This specific price is an example of (a):
a. customary price.
b. value price.
c. full-cost price.
d. incremental-cost price.
Lower off-season prices and higher peak-season prices for lodging at resorts illustrate
the use of yield management as a strategy to generate revenues for a largely fixed-cost
industry.
a. True
b. False
In the recovery period, which type of firms have the best possible chance to create loyal
customers by providing exceptional service?
a. Brands
b. Sick units
c. Providers of superior services at lower prices
d. Price skimmers
A blogging site is a social media platform where users post news items and hold
conversations on specified topics.
a. True
b. False
If a company markets a consumer product, such as toilet paper, in bulk quantities to the
entire market, it is involved in micromarketing.
a. True
b. False
Career counseling session is an example of a pure service on the goods-services
continuum.
a. True
b. False
Bose has developed a new high fidelity line of speakers and is attempting to determine
the amount of sales that could be generated by target customers in various segments in
order to determine whether or not they should proceed with introduction of the new
speakers. Which step of the marketing segmentation process best describes this
activity?
a. forecast market potential
b. forecast probably market share
c. select specific segments
d. develop a profile of each segment
The product lifecycle concept applies to individual brands of a product.
a. True
b. False
Which of the following is an example of personal selling?
a. Banners on websites
b. Videoconferencing
c. Print ads
d. Direct mailers
You are conducting interviews for new sales representatives for your manufacturing
firm. You are primarily looking for candidates that you think will be resources for your
indirect customers, educating them, providing technical assistance, and demonstrating
how a new product is used.
You will be looking for personal sales personnel who are proficient in which kind of
sales task?
a. order processing
b. support personnel
c. order getters
d. technical sales reps
e. missionary selling
Modified rebuys resemble routinized response behavior in consumer markets.
a. True
b. False
In the context of cybercrime, luring consumers to provide personal information is called
_____.
a. piracy
b. viral marketing
c. logging
d. phishing
If a company markets its breakfast cereal to children, it is using _____ segmentation to
segment its markets.
a. psychographic
b. demographic
c. end-use
d. geographic
_____ advertising includes two-way promotional messages transmitted through
communication channels that induce message recipients to participate actively in the
promotional effort.
a. Comparative
b. Retail
c. Interactive
d. Cooperative
ISO 9000 standards of the International Organization for Standardization sets
requirements for:
a. quality in goods and services.
b. production operations.
c. worker compensation.
d. operations that minimize harm to the environment.
Personal selling is likely to be the primary component of a firm’s promotional mix
when:
a. the firm markets inexpensive products that require no special handling.
b. the transactions frequently involve trade-ins.
c. the price of the products is relatively low.
d. the firm markets to a large number of customers in various locations.
Freight forwarders act as transportation intermediaries, consolidating shipments to gain
lower rates for their customers.
a. True
b. False
North Face is a well known brand affiliated with active lifestyles such as backpacking,
snow skiing, and camping. The company’s products are available in a wide number of
retail outlets as well as their company-owned specialty stores. The mix of products sold
in the retail outlets varies widely depending on the market location. For example, stores
in Northern California stock technical products suitable for customers who are avid
backpackers, hikers and rock climbers while retailers in the Midwest states offer a
greater selection of apparel. What type of segmentation is reflected by stores carrying
the North Face brand?
a. geographic
b. age-related
c. ethnic-related
d. product-related
Which of the following measures, when adopted, will help an online retailer to build
customers’ trust?
a. Using third party cookies issued by Web servers
b. Use of behavioral targeting to research customer preferences
c. Installing spyware on Web browsers
d. Prominently displaying a privacy policy
You represent a group of investors who are interested in entering the retail business.
Many of these investors have significant past experience working with retailers, and
they realize that the retail world is very competitive. They are also aware of the high
failure rate for startups in this industry, so they ask you to recommend a retail strategy
that could minimize potential losses by meeting the following criteria:
•Overall operating expenses would be low.
•No traditional storefront or personal selling would be necessary.
•Minimal customer service would have to be provided.
•Customers would be able to place orders via the Internet, telephone, or mail.
Based on the investors’ preferences, which retail strategy would you recommend?
a. direct selling
b. telemarketing
c. catalog marketing
d. automatic merchandising
e. television home shopping
With reference to the business products classification system, which of the following
group of products typically has a long distribution channel?
a. Installations
b. Component parts and materials
c. Raw materials
d. Supplies
Which of the following factors is considered by marketers while segmenting business
markets by purchase categories?
a. The precise way a business purchaser will use a product
b. The complexity and precision of the requirements for goods and services
c. The customer’s transaction history
d. The sales revenues of the customer’s firm
Licensing is an attractive entry strategy for small firms as it does not involve capital
outlays.
a. True
b. False
The primary disadvantage of magazine advertising is that magazines lack the flexibility
of newspaper, radio, and TV.
a. True
b. False
While cultural and family influences significantly affect consumer behavior, the
influence of reference groups on consumer behavior tends to be minimal, especially for
children.
a. True
b. False
Sales promotion provides a long-term incentive to emphasize, assist, supplement, or
otherwise support the objectives of the promotional program.
a. True
b. False
What are the three questions a sales manager must address as part of a salesperson’s
evaluation? How can a sales manager ensure that all employees are treated equally
while completing an evaluation summary?
How has the online shopping behavior of customers changed over the last few years?
What is market-plus pricing? Why do companies practice a skimming strategy?
Discuss the three alternative strategies for pricing exports.
What is a marketing strategy? Explain the process of implementing the marketing
strategy into action.
Explain how each product listed below can be classified as either a consumer and/or
business product.
1)Shampoo
2)Steel bars for concrete reinforcement
3)Lawn mower
4)Computer
5)Automobile
Define sales promotion. How does sales promotion support other promotional activities
of a firm?
In addition to examining the lifetime value of a customer and the payback from a
customer relationship, what other techniques can a firm use to evaluate its relationship
marketing programs?
Describe the ways in which consumers rely on social media for their buying decisions.
Describe over-the-counter and field selling.
How do just-in-time policies influence business demand?
What is the role of a social media strategist and social media developer in social media
marketing?
How does a new–product committee differ from a venture team?
Discuss the four dimensions of brand personality as described by the Young & Rubicam
Brand Asset Valuator model.
What is a follow-up? Why is follow-up an important step in the sales process?
Differentiate between social media platforms and social media tools.
What is international direct investment? What are the different forms of direct
investment?
Differentiate between revenue tariffs and protective tariffs. Give an example for each.