When a company sets a high price for a new product with the intention of reducing the
price in the future, it is using the ________ pricing strategy.
A) market-skimming
B) cost-plus
C) market-segmentation
D) market-penetration
E) competitive
What are the stages that the approaches to marketing strategy and practice usually pass
through?
A) ambush marketing, multi-level marketing, and guerrilla marketing
B) guerrilla marketing, ambush marketing, and affinity marketing
C) multi-level marketing, undercover marketing, and evangelism marketing
D) entrepreneurial marketing, formulated marketing, and intrapreneurial marketing
E) undercover marketing, affinity marketing, and ambush marketing
Which of the following types of marketing involves sending out letters, brochures,
samples, and DVDs to consumers’ addresses?
A) direct-response marketing
B) direct-mail marketing
C) direct digital marketing
D) kiosk marketing
E) online marketing
Describe how marketers can engage in social media.
A current trend in the United States involves rediscovering the benefits of home-cooked
food and the use of organic ingredients. People are choosing to spend hours in the
kitchen using only the freshest ingredients to cook healthy and nutritious meals. This
change in ________ is one of the reasons for the increasing demand for organic
ingredients.
A) self-concept
B) subculture
C) lifestyle
D) personality
E) life-cycle
A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit
preserves aisle, alongside the jam jars of a better known brand—whose products are
priced at $8 apiece. Store managers reason that customers are more likely to choose the
store brand instead of the better-known brand when they realize the price difference.
What price adjustment strategy is evident in the supermarket’s reasoning?
A) by-product pricing
B) product bundle pricing
C) captive product pricing
D) psychological pricing
E) seasonal pricing
If Azerbaijan imported wheat from Romania in exchange for crude oil, and Vietnam
exchanged rice for Philippine fertilizer and coconuts then these scenarios would be
examples of ________.
A) cash transaction
B) compensation
C) buyback
D) blocked currency
E) barter
In the beginning of the buying process, Timothy Perry, a product development manager,
noticed that the raw materials that were being procured from his company’s regular
supplier were of poor quality. Consequently, he decided to change the existing supplier
as a remedial measure. The stage of the buying process in which Timothy identified the
quality breach represents the ________ stage.
A) problem recognition
B) general needs description
C) product specification
D) supplier search
E) performance review
As a manufacturer increases the price, ________.
A) efficiency drops
B) the break-even volume drops
C) competition is minimized
D) the total costs increase
E) the profit margin shrinks
Packaging decisions that may be called into question under the law include ________.
A) minimum pricing
B) pollution
C) product quality and safety
D) exclusive territorial distributorship
E) product warranty
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.
An easier, more comfortable, more stylish transfer of thought onto paper refers to the
________ of Ruben’s offerings.
A) tangible element
B) core customer value
C) actual product
D) augmented product
E) service variability
A technician in a hospital told the chief dentist, Dr. Albrecht, that the hospital should
purchase equipment that would sterilize the dentists’ tools without using any water
because water tends to affect the durability of the tools over time. Dr. Albrecht located
some articles on chemical sterilizers and gathered more information on how they
worked. After talking to salespeople, Dr. Albrecht finally placed his order for the
machine. In this instance, Dr. Albrecht played the role of a(n) ________.
A) monitor
B) decider
C) agent
D) influencer
E) gatekeeper
A seller pursues a basic relationship with what kind of customers?
A) many customers regardless of profitability
B) many high-margin customers
C) many low-margin customers
D) a few high-margin customers
E) a few low-margin customers
Which of the following is an example of cultural pollution?
A) gasoline shortages
B) congestion tolls
C) street signs in cities
D) overpasses in suburban areas
E) billboards marring beautiful scenery
The number of times an average person in the target market is exposed to a message is
known as the ________ of the message.
A) quantitative value
B) reach
C) frequency
D) exposure rate
E) turnover rate
________ refers to how a company will create differentiated value for targeted
segments and what positions it wants to occupy in those segments.
A) Targeted marketing
B) Market segmentation
C) Product positioning
D) Value proposition
E) Niche marketing
Which of the following is the most frequently visited type of retail store?
A) convenience store
B) department store
C) supermarket
D) superstore
E) off-price retailer
Which of the following statements about income distribution in the United States is
NOT true?
A) Over the past several decades, the rich have grown richer.
B) Over the past several decades, the middle class has grown faster than other classes.
C) Over the past several decades, the poor have remained poor.
D) The top 20 percent of earners capture over 50 percent of all income.
E) The top five percent of American earners get nearly 22 percent of the country’s
adjusted gross income.
Pierre’s Mart, a grocery store in New Orleans, Louisiana, offers less merchandise
selection and fairly low levels of service. Despite the lackluster service and limited
selection of merchandise, customers still flock to Pierre’s because it charges
rock-bottom prices. Pierre’s Mart most likely uses the ________ positioning.
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more
Regulations force companies to be responsible. However, most companies want to be
responsible. Impacts of government regulations include all of the following EXCEPT
________.
A) informing the public that products are safe
B) higher research costs
C) increased sales because they have been found to be safe
D) penalties to companies that fail to meet the regulations
E) longer times between new product ideas and their introduction
Companies need to know each competitor’s product quality, features, and mix; customer
services; pricing policy; distribution coverage; sales force strategy; and advertising and
sales promotion programs. These are all the dimensions that identify ________ groups
within the industry.
A) target
B) focus
C) control
D) strategic
E) experimental
An IKEA ad shows consumers creating fanciful room designs with IKEA furniture,
such as “a bedroom for a queen made by Bree and her sister, designed by IKEA.”
Which of the following message execution styles is illustrated in this example?
A) mood or image
B) musical
C) fantasy
D) lifestyle
E) personality symbol
Rather than measuring click-through rates, companies now want to track ________ as a
more accurate measure of the engagement of the consumers in the message.
A) ratings
B) consumer expressions
C) listenership
D) consumer impressions
E) readership
Which of the following is an accurate statement about the diversity of the American
population?
A) African Americans represent the largest non-white segment of the population.
B) More than 20 percent of the people living in the United States were born in another
country.
C) By 2050, the Asian population is estimated to remain at 4.7 percent.
D) By 2060, Hispanics are estimated to be 28 percent of the population.
E) The United States has become more of a “melting pot” than a “salad bowl.”
Arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers is known as ________.
A) positioning
B) segmenting
C) diversifying
D) prospecting
E) satisficing
To overcome problems in focus group interviewing, some companies employ small
groups of consumers who interact directly and informally with product designers
without a focus group moderator present. Such groups are known as ________.
A) classes
B) consumer guilds
C) virtual communities
D) immersion groups
E) primary groups
When criticized about the value of intermediaries, marketers and resellers respond that
intermediaries ________.
A) are too few in number
B) are inefficient
C) provide only necessary services that must be provided by someone
D) actually underprice their services
E) are too competitive and difficult to work with
Which of the following best describes divisibility of an innovation that influences the
rate of adoption?
A) It is the degree to which the innovation is difficult to understand.
B) It is the degree to which the results of using the innovation can be observed or
described to others.
C) It is the degree to which the innovation appears superior to existing products.
D) It is the degree to which the innovation may be tried on a limited basis.
E) It is the degree to which the innovation fits the values and experiences of potential
consumers.
Which of the following is the first step in strategic planning?
A) setting short-term goals
B) developing the business portfolio
C) defining the organizational mission
D) formulating the key marketing strategies
E) identifying the organization’s weaknesses and the threats it faces
A company getting ready to launch a new product must make several decisions. The
company must first decide on ________.
A) whether to launch the product in a single location
B) whether to launch the product in a region
C) whether to launch the product into full national distribution
D) when to introduce the product
E) when to develop a planned market rollout
The first step in designing support services is to ________.
A) add new services that will both delight customers and yield profits to the company
B) closely observe the product and pricing strategies of consumers
C) survey customers to assess the value of current services and obtain ideas for new
ones
D) prevent brand dilution
E) encourage customers to try new products
Which of the following is the first step in the personal selling process?
A) handling objections
B) follow-up
C) presentation and demonstration
D) preapproach
E) prospecting and qualifying