Mobile computer tablets were introduced a few years ago. Due to its increasing
popularity and high profit levels, the number of companies making these tablets has
increased. At the same time, differentiated products for different market segments have
begun to emerge. Mobile computer tablets appear to be in the _____ stage of the
product lifecycle.
a. growth
b. introductory
c. maturity
d. decline
Which of the following is a market structure in which only one seller of a product exists
and for which there are no close substitutes?
a. Pure competition
b. Monopolistic competition
c. Oligopoly
d. Monopoly
Pizza Hut franchises stores in areas with Arab and Indian populations. To accommodate
dietary differences, the traditional American recipes are modified. Consequently, the
advertising, packaging, and promotional message will change. Marketers refer to these
changes as dual adaptation.
a. True
b. False
While making purchasing decisions, consumers are likely to buy products they believe
will move them closer to their _____ self.
a. real
b. neutral
c. actual
d. ideal
The number of brands included in the evoked set may vary according to the situation
and the person.
a. True
b. False
A consumer goods company segments its markets on the basis of purchase patterns of
their customers. The company groups its consumers who regularly buy their product
into heavy, moderate, and light users, and nonusers. This segmentation approach is an
example of _____.
a. segmentation by benefits sought
b. geographic segmentation
c. segmentation by usage rates
d. distributive segmentation
A new employee in your company is confused. She was hired to help with purchasing,
but she’s been told that she will be busiest after purchases have been concluded — in
other words, after vendors have been chosen and their goods have been supplied. Will
this employee be involved in the organizational buying process?
a. Yes, by obtaining feedback and evaluating performance.
b. Yes, by evaluating proposals.
c. Yes, by qualifying vendors.
d. No, because the process will be over when she gets involved.
e. No, because she will not have a say in vendor selection.
_______________ refers to the revenues and intangible benefits a customer brings to
the seller over the long-term.
a. Customer loyalty
b. Customer churn
c. Customer lifetime value
d. Customer satisfaction
e. Customer retention
A private-label product priced below the lower limit can be regarded as too cheap by
potential customers.
a. True
b. False
Direct-response retailing that runs promotions on cable TV networks to sell
merchandise through telephone orders is called:
a. personal selling.
b. telemarketing.
c. home shopping.
d. automatic merchandising.
The Federal Food and Drug Act was designed to maintain a competitive environment in
the food and drug industries.
a. True
b. False
The Poison Prevention Packaging Act:
a. requires firms to mandatorily inform customers regarding the dangers associated with
the use of products.
b. requires drug manufacturers to place their products in packages that are child
resistant yet accessible to all adults.
c. bans those products that contain harmful chemicals.
d. requires firms to publicize the testing procedures that go into the development of
their product packaging.
A disadvantage of using radio as an advertising medium is that:
a. it has a highly segmented audience.
b. the message cannot be tailored easily to adapt to local preferences.
c. it is expensive.
d. it lacks flexibility.
O&S Ticket Brokers, a Broadway theater ticket agency, sells tickets in bulk to corporate
clients. It would be considered a wholesaling intermediary even though the firm does
not take title to the tickets it sells.
a. True
b. False
The activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have values for customers, clients, partners, and society
at large is called _____.
a. marketing
b. financing
c. operations
d. administration
When firms in business markets are grouped based on their sales revenues, they are said
to be segmented by:
a. customer type.
b. purchase category.
c. end-use application.
d. demographic characteristics.
An automobile manufacturer is dependent on a single supplier for tires. Based on this
information, which of the following statements is true?
a. The barriers to market entry are low.
b. The buyer has greater bargaining power.
c. The threat of new entrants is high.
d. The supplier has significant bargaining power.
Business firms that market highly technical and complex products will have a
specialized sales force for each major category of the firm’s products.
a. True
b. False
The term “reseller” is often used to describe marketing intermediaries who operate in
trade industries.
a. True
b. False
The Organization of Petroleum Exporting Countries (OPEC) is a marketing
organization:
a. that seeks to control prices through collective action.
b. regulated by NAFTA and the EU.
c. that uses countertrade to obtain valuable foreign investments.
d. formed to address the growing competition from Venezuela and North Sea crude
exploration.
Which of the following is the first main activity involved in benchmarking?
a. Comparing internal processes to those of industry’s performance leaders
b. Identifying the strengths and weaknesses of a firm’s internal processes
c. Implementing changes for quality improvement
d. Identifying critical market segments
A refund of a portion of the purchase price usually granted by the product’s
manufacturer to consumers is known as a _____.
a. cash discount
b. rebate
c. functional discount
d. trade-in
Volume-related pricing objective with the goal of controlling a portion of the market for
a firm’s product is known as a ______ objective.
a. prestige
b. market-share
c. target-return
d. meeting competition
A firm that adopts a _____, attempts to capture the greatest market share and develop
longterm relationships by being the pioneer to enter the market with a good or service.
a. planning
b. marketing planning
c. strategic planning
d. tactical planning
e. cash cows
f. first mover strategy
g. SWOT analysis
h. strategic window
i. marketing mix
j. product strategy
k. strategic business units
l. Porter’s Five Forces
m. marketing strategy
n. dogs
o. stars
p. annual growth rate
In international marketing, which of the following pricing objectives is used when
products are associated with intangible benefits, such as high quality, exclusiveness, or
attractive design?
a. Profitability objective
b. Volume objective
c. Meeting-competition objective
d. Prestige objective
In designing promotional messages aimed at teens, you realize it is critical to use the
language, references, idioms, and even jokes popular among that age group. Otherwise,
you are courting trouble primarily related to which element of the communication
process?
a. Encoding by sender
b. Decoding by receiver
c. Response
d. Feedback
e. Choosing a channel
According to relationship marketing, firms must apply higher standards of customer
satisfaction to external customer relationships over intradepartmental relationships.
a. True
b. False
Starbucks marketing itself as “premium coffee” beverage retailer is an example of a
positioning strategy based on _____.
a. product class
b. product users
c. product life cycle stage
d. product homogeneity
Firms with similar skills and resources form a partnership to reduce costs.
a. True
b. False
What types of utility are created by wholesaling intermediaries when they make a
product available at a convenient location at the moment it is needed by the customer?
a. Possession and location
b. Ownership and form
c. Place and time
d. Time and possession
The term customer relationship management refers to a combination of strategies and
tools that attempts to:
a. create good relationships between all wholesalers and/or retailers in the distribution
channel.
b. retain customers by offering lower prices on the purchase of specific products or
services.
c. develop a network of interconnected businesses involved in the ultimate provision of
products and services required by end customers.
d. reorient an entire organization to a concentrated focus on satisfying customers.
The term “product positioning” refers to:
a. a low cost market entry strategy in which two or more firms represent one another’s
complementary yet non–competing products in the markets.
b. the process of developing entirely new products for new markets.
c. consumers’ perceptions of a product’s attributes, uses, quality, as well as advantages
and disadvantages relative to competing brands.
d. the process of developing a trade dress for a new product.
An understanding of a company’s brand is neither imperative nor central to the task of
managing a social media marketing campaign.
a. True
b. False
Honda, a Japanese firm, builds a factory in Alabama to make minivans to be marketed
in the United States. Which of the following strategies of entering into a foreign market
is best represented by this example?
a. Subcontracting
b. Franchising
c. International direct investment
d. Licensing
Since it involves the use of a high price relative to prices of competing products or
services, the skimming pricing strategy is sometimes referred to as _____ pricing.
a. penetration
b. competitive
c. market-plus
d. functional