Chris decides to proceed with a majority decision, even though the decision goes
against his beliefs. Chris is exhibiting the Asch phenomenon in this scenario.
a. True
b. False
Production, promotion, and reclamation of environmentally sensitive products is the
basic premise of ethical marketing.
a. True
b. False
The practice of adding a percentage of specified dollar amount—or markup—to the
base cost of a product to cover unassigned costs and to provide a profit is called _____
pricing.
a. full-cost
b. breakeven
c. incremental-cost
d. cost-plus
The point at which the additional revenue gained by increasing the price of a product
equals the increase in total costs is called _____.
a. breakeven analysis
b. tariffs
c. unfair-trade laws
d. incremental-cost pricing
e. profit maximization
f. demand
g. value pricing
h. monopoly
i. elasticity
j. marginal
k. fair-trade laws
l. yield management
m. oligopoly
n. cost-plus pricing
o. full-cost pricing
p. supply
q. marginal analysis
r. target-return objectives
s. market-share objectives
t. pure competition
A new product committee is a group in an organization that:
a. helps the organization in identifying a suitable partner for a join venture.
b. looks after all the legal aspects of the organization when it launches a new product in
the market.
c. coordinates and integrates the work of the firm’s functional departments on a specific
project.
d. reviews and approves new–product plans that arise elsewhere in the organization.
Which of the following is true of a strategic business unit?
a. A strategic unit directly adopts the mission of its parent organization.
b. Each strategic unit depends on plans of the other units in the organization.
c. A strategic unit has its own managers, resources, objectives, and competitors.
d. A strategic unit is a key business unit within a small company that does not differ
significantly from the parent company.
While many firms claim to have adopted the marketing concept, there is little evidence
that a strong market orientation contributes to market success and overall performance.
a. True
b. False
In the context of the communication process, translating a message into understandable
terms and transmitting it through a communications channel is known as _____.
a. decoding
b. referencing
c. polarizing
d. encoding
If a middle manager buys a Audi automobile because several top executives in the firm
own Audis, this demonstrates the influence of membership groups.
a. True
b. False
Revenue tariffs are designed to raise funds for the importing government.
a. True
b. False
Praga is an automobile manufacturing company that makes cars. Praga buys steel,
aluminum, paints, car engines and other necessary components from various suppliers
around the world and assembles them together to make a final product. Praga belongs to
the _____ component of the business-to-business market.
a. commercial market
b. trade industries
c. institutions
d. governmental organizations
_____ is the meaning that a person attributes to incoming stimuli gathered through the
five senses.
a. evoked set
b. consumer behavior
c. culture
d. reference group
e. Asch phenomenon
f. opinion leader
g. need
h. motive
i. perception
j. attitude
k. learning
l. subliminal perception
m. high-involvement purchase decision
n. closure
o. cognitive dissonance
p. routinized response behavior
q. shaping
r. perceptual screens
s. evaluative criteria
t. self-concept
As a home builder, you frequently hear from buyers who have completed a purchase
from your company but are experiencing cognitive dissonance. When you interview
prospective sales agents, you warn them about this phenomenon. Cognitive dissonance
is especially likely in the home market, you say, because:
a. Homes are expensive purchases.
b. Home purchases have major effects on the buyers.
c. Home buyers see ads from rival builders touting features that your homes do not
provide.
d. Home buyers have unique evaluative criteria.
The buyer and seller exchanges in transaction-based marketing are characterized by
limited communications and little or no ongoing relationships.
a. True
b. False
Which of the following can be categorized under the cognitive component of an
attitude?
a. Buying behaviors
b. Emotional reactions
c. Knowledge of the product
d. Value placed upon the product
The head of sales at a publishing firm is seeking better information to make informed
marketing decisions. He already gets data about the company’s daily flow of business;
now he needs tools that will enable him to use the raw numbers in developing models
and graphs. He is looking for a _________system.
a. Marketing Information
b. Marketing Decision Support
c. VALS
d. Marketing Intelligence
e. Big Data
B2B emarketing refers to the use of the Internet for business transactions between
organizations.
a. True
b. False
A(n) _____ is the price of one nation’s currency in terms of another nation’s currency.
a. exporting
b. WTO
c. infrastructure
d. exchange rate
e. tariff
f. import quota
g. dumping
h. ISO certification
i. foreign licensing
j. multinational corporation
k. global marketing strategy
l. multidomestic marketing strategy
m. countertrade
n. related party trade
o. exchange control
p. customs union
q. CAFTA-DR
r. importer
s. embargo
t. franchise
_____ is a customized marketing program designed to build longterm relationships with
individual customers.
a. utility
b. buzz marketing
c. exchange process
d. seller’s market
e. buyer’s market
f. marketing myopia
g. social responsibility
h. relationship marketing
i. person marketing
j. place marketing
k. event marketing
l. organization marketing
m. interactive marketing
n. lifetime value of a customer
o. social marketing
p. onetoone marketing
q. strategic alliances
r. notforprofit organizations
s. ethics
t. mobile marketing
u. wholesalers
v. transactionbased marketing
You’ve started a business on your college campus to sell luxurious blue dorm room rugs
with the college logo. You plan to target male freshmen who come from local towns,
like the color blue, can afford luxury products, want rugs for their rooms, and are
enthusiastic about boosting the school. You can easily and efficiently promote to all
freshmen, including this segment, with Facebook and other social media tools. But your
marketing professor cautions that you may be unable to meet certain criteria for
effective segmentation. Which criteria does she cite?
a. The segment must present measurable purchasing power and size.
b. The marketer must be able to promote effectively to the segment.
c. The segment must be large enough to offer significant profit potential.
d. The segment must be certified.
e. Your plan is unlikely to meet any of the criteria for effective segmentation.
A penetration pricing strategy is called _____ pricing when it implements the premise
that a lower-than-market price will attract buyers and move a brand from an unknown
newcomer to brand-recognition or brand-preference stage.
a. market-plus
b. market-minus
c. EDLP
d. FOB
A _____ is a specially packaged item that gives the purchaser a larger quantity at
regular price.
a. rebate
b. premium
c. sample
d. bonus pack
The group of people to whom a firm directs its marketing efforts and ultimately its
merchandise is known as its _____ market.
a. undifferentiated
b. unsegmented
c. mass
d. target
A leading eLearning company is expanding its operations in Japan. To ensure smooth
communication between branches, it needs a communication technology which
provides facilities such as call plans, call waiting, and three way calling. Additionally it
would like to keep costs low. Which technology should it adopt?
a. IMS
b. VoIP
c. JIT
d. RFID
A _____ provides space for permanent showrooms and exhibits, which manufacturers
rent to market their goods.
a. discount house
b. trade fair
c. merchandise mart
d. clearing house
Monitoring local newspapers and television news shows for general information
relating to a firm’s business would be an example of:
a. environmental scanning.
b. economic analysis.
c. sociopolitical manipulation.
d. technological development.
An effective social media marketing campaign should contain good keywords that the
targeted audience are most likely to search for when looking for information about
goods and services.
a. True
b. False
A(n) _____ involves the use of a high price relative to competitive offerings.
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
A firm evaluating a supplier’s performance in categories such as EDI capability,
delivery time, and attention to special requests is carrying out vendor analysis.
a. True
b. False
Using the consumer products classification system, which of the following is most
likely to be true of the consumer factors for convenience products?
a. Consumers tend to purchase convenience products frequently.
b. Consumers tend to plan extensively before a purchase.
c. Consumers tend to regard convenience of location as unimportant.
d. Consumers tend to compare price and quality between competing products.
The purchaser of a shopping product lacks complete information prior to the buying trip
and gathers information during the buying process.
a. True
b. False