Which of the following statements is true of valuebased pricing?
a. It is a modification of uniform delivered pricing.
b. It is sometimes called postage stamp pricing.
c. It has grown out of the quality movement.
d. It presents drawbacks if costs are continually rising.
Which of the following refers to a publicly accessible web page that functions as an
interactive journal, whereby readers can post comments on the author’s entries?
a. Blog
b. Podcast
c. Promotional video
d. Forum
The manufacturer of Herbal Essences Shampoo gives away trial packs of conditioner to
test the market for its new product. This may refer as:
a. experiential learning.
b. selective perception.
c. continuous reinforcement.
d. conceptual learning.
Consumers determine value of the product on the basis of
a. perceived satisfaction.
b. the opportunity cost to buy the product.
c. discounts availed.
d. what other people buy.
Which responsibility among the 4 components of the pyramid of corporate social
responsibility acts as the foundation for the other three responsibilities.
a. To do what is meticulous.
b. To be a good corporate citizen.
c. To obey the law.
d. To make profits.
Freulia Inc. manufactures and sells stationery and office supplies. It is beginning to lose
its competitive advantage with the entry of new competitors. In this case, to gain a
sustainable competitive advantage, what should Freulia do?
a. Imitate the products of its competitors
b. Depend on government subsidies
c. Develop the skills and assets of the organization
d. Aim at being the lowcost competitor in the industry
Personal selling provides a brief and precise explanation of the product.
a. True
b. False
A _____ requires a manufacturer to focus its promotional efforts on end consumers or
opinion leaders.
a. push strategy
b. print marketing strategy
c. pull strategy
d. service strategy
Involvement is a marketing term used to describe the amount of time and effort a buyer
invests in the search, evaluation, and decision processes of consumer behavior.
a. True
b. False
A marketer who tries to convince consumers that a particular brand is distinctive—and,
therefore, they should demand it—is concerned with which positioning strategy?
a. Product differentiation
b. Product user or class
c. Product repositioning
d. Cannibalization
Floor stock refers to the inventory held in reserve for potential future sale in a retailer’s
storeroom or stockroom.
a. True
b. False
_______________ is a price tactic in which the seller pays the actual freight charges
and bills every purchaser an identical, flat freight charge.
a. Valuebased pricing
b. FOB origin pricing
c. Uniform delivered pricing
d. Zone pricing
Name the ultimate goal of a new trend in marketing that focuses on understanding
consumers as individuals instead of as part of a group.
a. Organizational optimization
b. Profit maximization
c. Total quality management
d. Customer relationship management
Roar Bros., a beverage manufacturing firm, recently launched a new energy drink. To
make consumers aware of the new drink and to stimulate their interest in it, the
managers want to use owned media to promote the new product. In this case, the
managers will most likely
a. make short commercials for the energy drink and upload it on YouTube.
b. encourage customers to share reviews about the energy drink on the firm’s website.
c. pay for advertising in television, magazine, radio, or newspaper.
d. use display advertising on websites and payperclick advertising on search engines.
Earned media is controlled by the brand but continuously keeps the customer and his or
her needs in mind as it creates videos, blog posts, contests, photos, and other pieces of
content.
a. True
b. False
Which of the following is one of the four major components of the pyramid of
corporate social responsibility?
a. Opportunism
b. Selfdealing
c. Creativity
d. Philanthropy
_____ is a public relations strategy that involves getting a product, service, or company
name to appear in a movie, television show, radio program, magazine, newspaper, video
game, video or audio clip, book, or commercial for another product; on the Internet; or
at special events.
a. Audience selectivity
b. Product placement
c. Corporate communication
d. Cooperative advertising
A decision is considered ethical or not based solely on the number of people who
benefit from the decision.
a. True
b. False
With fewer loyal customers and a low customer penetration, the shopathome industry
has shrunk over the years.
a. True
b. False
A _____ is any unit of input affecting one or more of the five senses: sight, smell, taste,
touch, and hearing.
a. consideration set
b. need
c. stimulus
d. want
The geographic pricing method that is a modification of uniform delivered pricing,
divides the United States (or the total market) into segments, and charges a flat freight
rate to all customers in that segment, is called ___________.
a. FOB origin pricing
b. zone pricing
c. uniform delivered pricing
d. basingpoint pricing
One risk of executing a store promotion that results in brand cannibalization is that the
promotion could ______.
a. create inaccurate sales forecasts for both the promoted and cannibalized products.
b. create inaccurate sales forecasts for the promoted product and none for the
cannibalized products.
c. increase the accuracy of the sales forecasts for both the promoted and cannibalized
products.
d. create accurate sales forecasts for the promoted product and none for the
cannibalized products.
At Magnira Corp., a company that manufactures fruit preserves, fruits of excellent
quality are used to make jams, jellies, and marmalades. In this scenario, the fruits are
examples of _____.
a. raw materials
b. component parts
c. MRO items
d. finished goods
Which of the following statements is true in comparing forprofit service firms and
nonprofit organizations?
a. While forprofit service firms market tangible products, nonprofit organizations
market intangible products.
b. Both often require the customer to be present during the production process.
c. While forprofit service firms vary greatly from producer to producer, nonprofit
organizations are uniform across producers.
d. Both vary greatly from day to day, but with the same producer the daytoday
variations are eliminated.
When an SBU has become a _____________, it is essential to either invest in it heavily
to gain better market share, acquire competitors to get the necessary market share,
reposition its products, or drop it.
a. cash cow
b. star
c. dog
d. problem child
In the United Kingdom, Tesco Grocery stores plan afternoon shipments from
distribution centers to stores only after reading morning sales data. This way, they can
replenish inventory sold only hours before. Tesco is an example of supply chain that is
______.
a. partly agile, but mostly lean
b. partly lean, but mostly agile
c. strictly agile
d. strictly lean
A software program that searches the Web for the best price for a particular item that
you wish to purchase is called ______________.
a. a shopping bot
b. the extranet
c. a wireless setup
d. an internet auction
Which of the following statements is true of pioneering advertising?
a. It offers consumers indepth information about the benefits of the product class.
b. It is heavily used during the growth stage of the product life cycle.
c. It is used to enhance a company’s image rather than promote a particular product.
d. It is used mainly to compare brands on one or more specific attributes.
Fresnas Designs Inc. is a company known for its quality interior decorations,
customized service, and affordable prices. Given the high demand for its service,
Fresnas’ management could price its products higher, but it prefers to price its products
such that it will earn a reasonable revenue. Fresnas bases its pricing policy on _____.
a. sales maximization
b. earning satisfactory profits
c. creating retained earnings
d. status quo pricing
Yum Nu, a battery manufacturing company, began marketing its products as
environmentally friendly and biodegradable, even though this has not been
scientifically verified. In this scenario, Yum Nu has used _____ to sell its products.
a. quality modification
b. product line extension
c. repositioning
d. greenwashing
Identify which statement correctly describes the effect price has in the marketing mix.
a. It does not affect a firm’s competitive advantage.
b. It is the least important of the four Ps of the marketing mix.
c. It is what a buyer must give up to obtain a product.
d. It is the hardest to change among the four Ps of the marketing mix.
A brand that obtains at least onethird of its earnings from outside its home country, is
recognizable outside its home base of customers, and has publicly available marketing
and financial data is called ____________.
a. a local brand
b. a global brand
c. brand equity
d. a brand mark
Which of the following scenarios illustrates the use of processed materials in
manufacturing?
a. NoGlut Inc. uses rice flour to manufacture its glutenfree products.
b. Zintec Hardware Inc. uses nails to hold its ladders together.
c. Pace Corp., an automobile company, uses magnesium alloy wheels for its highend
cars.
d. Reldex Steel Corp. uses blast furnaces in its manufacturing process.
When customers try to pit suppliers against each other to drive down the price of the
product, the salesperson should offer an initial discount and then raise the price later on.
a. True
b. False
Twitpic, Flickr, and Photobucket are all examples of:
a. media sharing sites.
b. corporate blogs.
c. virtual travel sites.
d. search engines.