The latest ad of Crest toothpaste says “Crest is a cavity fighter.” This is an example of a
positioning strategy based on:
a. product price/quality.
b. product homogeneity.
c. product application.
d. product users.
Last summer, the Thomas family had to decide whether to buy a new car, go to Disney
World, or remodel their basement. They chose the vacation. This illustrates:
a. that competition can be defined in terms of dissimilar products vying for a limited
supply of discretionary buying power.
b. how the most direct form of competition plays a role in a consumer’s decision
making.
c. how competition for essential items leaves unlimited discretionary funds for
nonessentials.
d. that there can be no competition among dissimilar products.
ReadUp is a social media management software that allows its users to read free books
available on the Internet and browse through various articles and international dailies
for information. ReadUp can be regarded as a(n) _____.
a. social news site
b. blogging site
c. online forum
d. app
_____ is a forecasting technique that assigns weights to historical sales data, giving the
greatest weight to the most recent data.
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
Websites such as Facebook and LinkedIn that provide virtual communities through
which people can share information, post opinions, and increase their circle of online
friends are referred to as _____.
a. influencers
b. social networking sites
c. social media monitoring
d. app
e. online forum
f. demographics
g. social media tool
h. return on investment
i. microblog
j. social media marketing
k. social media
l. transparency
m. social media marketing plan
n. bookmarking site
o. social media strategist
p. social media analytics
q. social media platform
r. content marketing
s. social news site
t. QR codes
A step out is a pricing practice in which a firm:
a. maintains a high price for a product throughout its life cycle.
b. offers an extremely low price on a single product purchase to reach the mass market
quickly and capture a large market share.
c. markets a product at a low price compared to competitive offerings to secure market
acceptance.
d. raises the price of a product and then waits to see if others follow suit.
According to the text, which of the following factors has led to increased use of the
Internet for making purchases by consumers in China?
a. The availability of local online payment systems.
b. The increased number of companies who offer free shipping or delivery to consumers
homes.
c. The enhanced speed of Internet bandwidth which enables consumers to stream online
videos advertisements.
d. The decreased regulations of Chinese government on private enterprise.
Which of the following statements is true regarding the nature of the business market?
a. Distribution channels for business products are significantly longer than those for
consumer products.
b. As compared to business markets, customer relationships in consumer markets tend
to last for longer duration.
c. Personal selling plays a bigger role in business markets than in consumer markets.
d. As compared to consumer markets, purchase decisions in business markets are
relatively simple because of relatively less number of decision makers.
Which of the following statements is FALSE concerning personal selling in today’s
business environment?
a. career opportunities for recent college graduates pursuing sales is projected to decline
in the future
b. computer technologies are vital tools for sales professionals
c. today’s sales representative focuses on building long-term relationships
d. many salespeople now operate in sales teams
Helene made sure that her company car was equipped with OnStar in case she ever has
car trouble or gets lost while traveling between appointments. Which level of Maslow’s
hierarchy of needs is Helene addressing?
a. Social needs
b. Safety needs
c. Esteem needs
d. Self-actualization needs
Firms that practice sole sourcing tend to order from a large pool of suppliers to hedge
the risk of failure of one supplier.
a. True
b. False
An investment group has decided to buy an international franchise of a nationally
known custom clothing chain. The group members are convinced that the franchise’s
headquarters has balanced their standard practices with local customer preferences.
Which characteristic of the custom clothing operation would be the best evidence of
incorporating cultural considerations?
a. The clothing has a range of prices for everyday items and for special occasions.
b. Changing booth arrangements allow for separate accommodations for men and
women.
c. Local stores carry appropriate amounts of body-covering clothing required by
different religious beliefs.
d. The ambiance of the store allows for respectful family and group conversations.
e. The staff members can speak many different local languages to serve customers.
Betty is convinced that certain prices will boost sales of her gourmet chocolates more
than other prices. Which of the following price policies could she apply?
a. Prestige pricing.
b. Elastic pricing.
c. Non-behavioral pricing.
d. Odd pricing.
e. Unit pricing.
Marketers are finding new product opportunities with two-income families demanding
goods and services that fill the need for convenience, health, safety, and time
constraints.
a. True
b. False
Your company is the market leader in your industry. You consistently beat your
competition by developing and distributing your goods and services more quickly than
they are able to do. Which of the following best describes what you are doing to beat
your competition?
a. Promotion superiority
b. Environmental scanning
c. Justintime inventory management
d. Timebased competition
e. Supply chain management
Which of the following is a benefit of high levels of brand equity as discussed in the
textbook?
a. consumers are willing to pay more for the company’s products
b. reduced levels of costs to produce the products
c. easy access to sources of private equity
d. reduced levels of government regulation
Johnson & Johnson manufactures more than 100 brands in nearly 50 product categories.
The total number of products they manufacture represents the _____ of its product mix.
a. length
b. depth
c. consistency
d. width
Reminding a customer that the flashlight he just purchased requires batteries (which are
available for sale) would be an example of:
a. cross selling.
b. bait-and-switch selling.
c. selling up.
d. suggestive selling.
One important advantage of personal selling over most advertising is:
a. the cost factor; personal selling is much cheaper.
b. the ability to actually demonstrate the good or service.
c. the minimal dependence on technology.
d. the low requirement for skilled salespeople.
A(n) _____ is a single brand name that identifies several related products.
a. trade dress
b. brand preference
c. brand insistence
d. generic product
e. family brand
f. brand equity
g. product diversification
h. trademark
i. brand extension
j. consumer innovator
k. brand name
l. private brand
m. brand manager
n. universal product code (UPC)
o. cannibalization
p. product liability
q. captive brand
r. brand mark
s. line extension
t. label
TecMag is a technology firm that builds computer systems and other related
components. TecMag sources its raw materials from various manufacturing firms and is
looking for a website that can help in effectively placing orders with the manufacturers
online, and also in tracking the order. Which of the following websites can help TecMag
accomplish this task efficiently?
a. Social website
b. Intranet
c. Private exchange
d. Corporate website
An auto manufacturer creates ownership utility for its consumers by combining metal,
rubber, plastic and petroleum products.
a. True
b. False
Purely cost-oriented approaches to pricing violate the marketing concept, so
modifications that add demand analysis to the pricing decision are required.
a. True
b. False
Which of the following statements is true regarding micromarketing?
a. Micromarketing techniques are mostly used by mass marketers.
b. Micromarketing is more narrowly focused than concentrated marketing.
c. Micromarketing is also called undifferentiated marketing.
d. Micromarketing involves producing a single product and marketing it in the same
way to all potential customers.
If ‘B’ represents consumer behavior, ‘I’ represents interpersonal influences, ‘P’
represents personal influences, and ‘E’ represents pressures exerted by outside
environmental forces, Kurt Lewin’s statement, rewritten to apply to consumer behavior,
states that:
a. B = f (I,P).
b. P = f (B,P).
c. B = (I,E).
d. P = (I,E).
Indicate one or more answer choices that best complete the statement or answer the
question.
Statutes enacted in most states that once permitted manufacturers to stipulate a
minimum retail price for their product are called _____.
a. fair-trade laws
b. tax-exemption laws
c. price discrimination laws
d. loss-leader laws
“For the same dollars that you spend on a no-frills ticket to Los Angeles, fly Business
Class with us!” is the advertising statement issued by FlyHigh Airlines. It represents an
attempt by FlyHigh Airlines to position itself with respect to its competitors.
a. True
b. False
Which of the following represents a problem associated with the use of customer
relationship management (CRM) programs?
a. some employees such as sales representatives are reluctant to use CRM systems
b. it is difficult to measure the results of a CRM program
c. CRM programs rely on decentralized data
d. CRM programs reduce the customer’s level of empowerment
In an oligopolistic market, a single seller controls the pricing decisions.
a. True
b. False
Financial Services Inc. had call centers in Malaysia where employees worked in shifts
to cater to American customers at all times. However, after receiving persistent
complaints about unsatisfactory service quality and increasing inefficiency, the
organization decided to shift the call centers to the United States again. This is an
example of:
a. outsourcing.
b. onshoring.
c. backshoring.
d. homeshoring.
An organized system of marketing institutions that enhances the physical flow of goods
and services, along with ownership title, from producer to consumer or business user is
called a(n) _____.
a. distribution channel
b. forward integration
c. logistics
d. dual distribution
e. direct selling
f. intensive distribution
g. selective distribution
h. exclusive distribution
i. tying agreement
j. backward integration
k. administered marketing system
l. corporate marketing system
m. contractual marketing system
n. private carriers
o. materials handling system
p. franchise
q. common carriers
r. upstream management
s. suboptimization
t. downstream management
Which of the following modes of transportation is typically associated with high
frequency of shipment?
a. Pipelines
b. Railroads
c. Water freight
d. Air freight
A _____ is an agent wholesaling intermediary that does not take title to or possession of
goods in the course of its primary function, which is to bring together buyers and
sellers.
a. truck jobber
b. broker
c. mass merchandiser
d. drop shipper