The term _____ refers to the turnover in a company’s customer base.
a. strategic alliance
b. relationship marketing
c. cobranding
d. frequency marketing
e. value chain
f. database marketing
g. exponential smoothing
h. customer relationship management
i. trend analysis
j. internal customers
k. comarketing
l. quick-response merchandising
m. affinity program
n. lifetime value of a customer
o. Delphi technique
p. national account selling
q. transaction-based marketing
r. customer churn
s. buzz marketing
t. grassroots marketing
Purchasing a firm’s entire stock of an item from just one vendor is termed as:
a. multiple sourcing.
b. sole sourcing.
c. outsourcing.
d. inverted sourcing.
A local apparel shop sets prices by adding a 45 percent markup to the invoice price
charged by the supplier. This method of pricing is known as _____ pricing.
a. cost-plus
b. breakeven
c. full-cost
d. incremental-cost
An IMC strategy helps marketers create a unified personality for the product or brand
by choosing the right elements from the promotional mix to send the message.
a. True
b. False
Taking steps to determine that a potential customer has the need, financial capability,
and authority to make a purchase is called canvassing.
a. True
b. False
Foreign marketers regard America as an inviting market because of its large population
and high levels of discretionary income.
a. True
b. False
The VALS system divides consumers into _____categories.
a. five
b. six
c. seven
d. eight
A hotel provides a toll-free number to its customers which they can use to obtain
information and make reservations. This is an example of inbound telemarketing.
a. True
b. False
New–product committee members spend less time conceiving and developing their
own new–product ideas than reviewing and approving new–product plans that arise
elsewhere in the organization.
a. True
b. False
The situation in retailing in which similar merchandise is available from multiple retail
outlets distinguished by price more than any other factor is known as:
a. scrambled merchandising.
b. wholesale concentration.
c. mail-order proliferation.
d. retail convergence.
Which of the following statements is true regarding the maturity stage of the product
lifecycle?
a. It is the second stage of the product lifecycle.
b. Since the product is unknown to the public during this stage, the promotional
campaigns stress information about its features.
c. During this stage differences between competing products diminish.
d. It is characterized by rapid growth in the volume of sales.
Which of the following is most likely to be true of consumer innovators?
a. They are unlikely to display brand loyalty toward products.
b. As compared to later adopters, they rely less on impersonal information sources.
c. They often act as opinion leaders from whom others seek advice.
d. They are less mobile, and do not prefer changing jobs often.
Which type of non-store retailing both allows products to be easily demonstrated and
allows time for prospective customers to become well informed about the product?
a. television home shopping
b. automatic merchandising
c. mail-order wholesaling
d. catalog marketing
e. telemarketing
International buying centers often involve more participants than U.S. companies
involve.
a. True
b. False
The use of technology in order-processing tasks can lead to an increase in:
a. the accuracy of processing an order.
b. the demand for the number of salespeople.
c. the time required to process an order accurately.
d. the sales quota to be fulfilled by each salesperson.
Cannondale Bicycles has a customers’ group called “The Chain Gang.” Members
receive emails listing cycling-related tips, as well as access to a special website
dedicated to cycling. In the context of the relationship marketing continuum, this is an
example of the _____ level of relationship marketing.
a. first
b. second
c. fifth
d. fourth
Quantitative forecasting methods rely on subjective data that reports opinions rather
than exact historical data.
a. True
b. False
The truck manufacturer for which Bonita works is being sued because the brakes in
several new trucks have failed and the trucks are being recalled. What is the
manufacturer responsible for?
a. better product test marketing
b. concise screening process
c. new–product departments
d. product liability
e. product interest
As compared to undifferentiated marketing, applying a micromarketing strategy allows
companies to reach larger markets.
a. True
b. False
_____ is information that originates in unprecedented volume and speed from the world
around us.
a. big data
b. exploratory research
c. secondary data
d. primary data
e. sampling
f. hypothesis
g. simple random sample
h. interpretative research
i. focus group
j. marketing decision support system
k. key performance indicator
l. predictive analytics
m. metrics
n. marketing research
o. quota sample
p. test marketing
q. cluster sample
r. data mining
s. convenience sample
t. controlled experiment
A marketing consultant just gave a motivational speech to your sales team about the
power of geographic segmentation. Quietly, you tell your boss that the consultant failed
to cover all of the geographic factors that are important to marketers. You cite the
following factor(s) she overlooked:
a. Residence location within a statistical area
b. Population migration patterns
c. Regional product preferences
d. Household income within a statistical area
e. Number of statistical reports published on a geographic area
The rules of engagement for social media mainly focus on making the exchange
between marketers and their targeted audience overly positive for the customers.
a. True
b. False
The market shares for generic products increase during economic downturns but
subside when the economy improves.
a. True
b. False
A multidomestic marketing strategy indicates that a firm:
a. customizes its marketing decisions to effectively reach individual marketplaces.
b. disregards the principles of market segmentation.
c. considers all foreign countries to have equally competitive situations with respect to
its industry.
d. employs universal promotional messages for marketing its products.
Customer service standards state the goals and define acceptable performance for the
quality of service that a firm expects to deliver to its customers.
a. True
b. False
Depreciation is an accounting term that refers to charging a portion of an expense item’s
cost against the company’s annual revenue for purposes of determining their net
income.
a. True
b. False
Home Depot introduced a new line of riding lawn mowers. The company decided to
focus more on people living in the suburbs than those in the city because a survey
showed the former category to be more inclined toward gardening. This is an example
of a demographic segmentation by Home Depot.
a. True
b. False
Beauty consultants at cosmetics counters in department stores often give customers
makeovers. In addition to the makeup, the consultants discuss skin care products to
improve skin texture so the makeup looks better. This type of interaction is called
suggestive selling.
a. True
b. False
The price normally quoted to potential buyers 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
Purchases made under cost-reimbursement contracts offer more profit potential to the
government than the fixed price contracts.
a. True
b. False
The conversion rate is a basic measurement of the percentage of visitors to a website
who make purchases at the site.
a. True
b. False
Feedback lets marketers evaluate the effectiveness of the message and tailor their
responses accordingly.
a. True
b. False
Financing is one of the _____ functions of marketing.
a. exchange
b. distribution
c. decisional
d. facilitating
Socioeconomic market segmentation is another name for _____ segmentation.
a. product-related
b. demographic
c. psychographic
d. geographic
According to the BCG market share/market growth matrix, the revenues earned from
cash cows should be used to finance the growth of:
a. question marks and dogs.
b. dogs and stars.
c. stars and question marks.
d. question marks and cash cows.