Reasons sellers go beyond what is required by pricing regulations include all of the
following EXCEPT that ________.
A) it is good business to treat customers fairly
B) customers that fully understand prices and pricing terms are happy customers
C) word-of-mouth from dissatisfied customers spreads rapidly
D) building strong and lasting relationships is key to business success
E) it improves profitability to earn additional revenue due to customer confusion
Refer to the scenario below to answer the following question(s).
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy
truck industry. Although Reliable Tools only has 15 customers, the company is the sole
supplier of hub and axle components to those customers. Monthly sales at Reliable
Tools are approximately $1 million. “You might say we have all our eggs in one
basket,” says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but
large accounts. Ninety-five percent of Reliable Tools’ customers are located in
Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively
short. However, given the nature of the industry, time spent with each customer is
crucial.
How would a customer sales force structure benefit Reliable Tools?
A) It would eliminate the need for the company’s salespeople to travel to meet
customers.
B) It would enable the company’s salespeople to build close relationships with
customers.
C) It would help the company’s salespeople become experts in the products they sell.
D) It would enable the company’s management to cut training costs substantially.
E) It would make telemarketing irrelevant.
Kellogg ads in the United States promote the taste and nutrition of Kellogg’s cereals
versus competitors’ brands. In France, where consumers drink little milk and eat little
for breakfast, Kellogg’s ads must convince consumers that cereals are a tasty and
healthful breakfast. Which marketing strategy is being followed by Kellogg?
A) straight product extension
B) product adaptation
C) product invention
D) communication adaptation
E) straight communication extension
________ is known as the merging of consumers, products, prices, and retailers.
A) Retail conglomeration
B) Consumer convergence
C) Price merging
D) Retail convergence
E) Retail clustering
Which of the following has become a major packaging concern in recent years?
A) underpackaging
B) legibility of print
C) colors used
D) product safety
E) durability
________ occurs when two established brand names of different companies are used on
the same product.
A) Market diversification
B) Niche marketing
C) Co-branding
D) Licensing
E) Cannibalization
The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were
enacted to curb the formation of ________.
A) monopolies
B) global partnerships
C) competitive markets
D) internal markets
E) intrastate partnerships
A marketer making decisions about the headline, copy, illustration, and colors for a
print ad is determining the message ________.
A) structure
B) content
C) medium
D) channel
E) format
Which of the following is true of promotional pricing?
A) It leads to ‘deal-prone’ customers who buy products only during sales.
B) It fortifies the brand’s image in the eyes of customers if relied upon extensively.
C) It simplifies shopping for customers if used simultaneously by multiple stores.
D) It makes balancing short-term sales incentives against long-term brand building
unnecessary.
E) It is extremely beneficial for the brand’s profitability if practiced repeatedly.
Costco’s Kirkland Signature products are an example of a ________.
A) national brand
B) support brand
C) private brand
D) generic brand
E) manufacturer’s brand
The discount offered by Glamor Gifts to customers who bought Valentine-themed
merchandise the week following Valentine’s Day is an example of a ________.
A) functional discount
B) seasonal discount
C) trade discount
D) cash discount
E) time-based discount
Marketers who use ________ often segment their markets by consumer lifestyles and
base their marketing strategies on lifestyle appeals.
A) demographic segmentation
B) geographic segmentation
C) benefit segmentation
D) psychographic segmentation
E) occasion segmentation
Which of the following companies uses a direct marketing channel?
A) Fishhooks, a factory that manufactures fishing equipment that it ships to hobby
stores worldwide
B) Germfight, a factory that manufactures dental products that it distributes only to
select department stores
C) Apple Blossoms, a company that sells its cosmetics exclusively through Ray’s Retail
Store
D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online
click-to-order catalogs
E) Showdown, a clothing store that stocks merchandise from different international
brands
Even large companies use infomercials for all the following reasons EXCEPT to
________.
A) recruit members
B) refer customers to retailers
C) attract buyers to online, mobile, and social media sites
D) introduce new advertising campaigns
E) sell their products
Companies set not a single price, but a pricing ________ that covers different items in
its line and changes over time as products move through their life cycles.
A) by-product
B) structure
C) loop
D) cycle
E) bundle
Critics point out that in the stationery industry, a pen that costs fifty cents to make costs
the consumer $10 to buy. This is an example of ________.
A) deceptive advertising
B) redlining
C) excessive markups
D) high-pressure selling
E) shoddy products
A company that is in a good position to identify new opportunities is a ________
company.
A) market-centered
B) cost-centered
C) competitor-centered
D) product-centered
E) customer-centered
Proposals related to ________ include promoting the use of sustainable ingredients,
recycling and reducing solid wastes, and managing energy consumption.
A) the right to be informed
B) consumer protection
C) preserving the world for future consumption
D) quality of life
E) the right to charge any price for the product
Target recently opened temporary shops to celebrate limited-run collections by Jason
Wu in Toronto and Missoni in New York. These temporary shops are examples of
________.
A) lifestyle centers
B) pop-up stores
C) warehouse clubs
D) strip malls
E) category killers
While developing an effective integrated communication, once the target audience has
been defined, marketers must do all these steps EXCEPT ________.
A) determine the desired response
B) collect feedback
C) choose the media through which to send a message
D) identify potential distractions
E) design a message
Which of the following is a disadvantage of using secondary data?
A) Secondary data is generally not appropriate for consumer products.
B) Collecting secondary data is time consuming.
C) Few sources exist for secondary data.
D) Gathering secondary data is costly.
E) Relevant secondary data can be difficult to locate.
Double Drill Inc. segments its foreign markets by per capita income. This firm
segments the international markets based on ________.
A) political factors
B) legal factors
C) geographic location
D) economic factors
E) cultural factors
All of the following are disadvantages of test marketing EXCEPT that test marketing
________.
A) is typically expensive
B) can be time consuming
C) enables competitors to gain advantages
D) encourages dishonesty among participants
E) fails to guarantee product success in the market
The New Age Gallery has three admission prices for students, adults, and seniors, even
though all three groups are entitled to the same services. This form of pricing is called
________ pricing.
A) psychological
B) product form
C) customer-segment
D) captive product
E) by-product
Which of the following is an organizational factor that influences business buyers?
A) technology
B) company procedures
C) employee attitudes
D) employee motives
E) group dynamics
Most companies will compete with ________ rather than ________.
A) distant competitors; close competitors
B) close competitors; distant competitors
C) benchmarkers; distant competitors
D) market challengers; market followers
E) market challengers; market nichers
The more formal “business attire” look of corporate dress of the 1980s and 1990s gave
way to the “business casual” look of the 2000s and 2010s. This is an example of a
________.
A) style
B) fashion
C) fad
D) subculture
E) norm
Each culture contains smaller ________, or groups of people with shared value systems
based on common life experiences and situations.
A) cultural universals
B) reference groups
C) subcultures
D) monocultures
E) social networks
Which form of geographic pricing is a company using when it charges the same rate to
ship a product anywhere in the United States?
A) uniform-delivered pricing
B) psychological pricing
C) zone pricing
D) FOB-origin pricing
E) basing-point pricing
The simplest way to enter a foreign market is through ________.
A) joint venturing
B) direct investment
C) exporting
D) joint ownership
E) contract manufacturing
The lighting in Jake’s Steak Restaurant is dim. The chairs are covered in leather and
each table is covered with a white linen cloth. The colors are limited to earth tones with
an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant
melody that seems familiar but unrecognizable. The smells are extraordinarily varied.
This is a description of the restaurant’s ________.
A) promotions
B) target
C) atmosphere
D) services mix
E) product assortment
Describe the three decisions involved in designing a sample.
Define market penetration.
How is consumer-oriented marketing different from customer-value marketing?
What should the price steps of product line pricing take into account?
Describe two ways that marketers can participate in online social networks. What are
the challenges and advantages of these approaches?
You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How
might you go about creating brand experiences for your customers?
Each product will have a life cycle, although its exact shape and length is not known in
advance. Briefly explain each phase of the product life cycle.
When is it advisable to predominantly use sales promotions in a promotion mix?
Discuss the advantages of using the services of an advertising agency.
How do people’s views of nature affect marketers?
Explain the concept of the price floor.
Discuss how small businesses and not-for-profit organizations can obtain market
insights economically.
