Downstate Drug Company relies heavily on fear appeals in its advertising for
prescription medications. As the new promotions director, you will soon advise the
CEO to begin transitioning to different kinds of messages. Choose the argument(s) you
are unlikely to make.
a. Fear appeals for drug products have been disappearing in recent years.
b. The FDA is about to ban prescription drug advertising on TV.
c. Consumers may tune out statements they perceive as too strong.
d. There may be a future backlash against fear appeals because so much drug
advertising relies on them.
e. You would be likely to make all of the above arguments.
The concept of span of control refers to the number of sales representatives who report
to first-level sales managers.
a. True
b. False
Jose is visiting Boston on a business trip and has heard that the North End is known for
its restaurants and entertainment venues. He checks TripAdvisor to see the list of
restaurants and those rated highest by members. He also reads reviews and narrows his
choice to Mamma Maria’s which is ranked #3 of 133 restaurants in the North End. How
has TripAdvisor assisted Jose in his purchasing decision process?
a. conducting research
b. identifying new products
c. identifying a need
d. evaluating the purchase
Technological change is an environmental factor influencing business buying decisions.
a. True
b. False
The labor conditions in a country are part of its political environment.
a. True
b. False
_____ is the ultimate stage in brand loyalty that leads consumers to refuse alternatives
and search extensively for the desired merchandise.
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
Product positioning refers to consumers’ perceptions of a product’s attributes, uses,
quality, and advantages and disadvantages relative to competing brands.
a. True
b. False
Which of the following statements is true regarding online surveys?
a. It allows researchers to establish rapport with the respondents and explain confusing
or vague questions.
b. It allows participants to respond at their leisure.
c. It is a highly time consuming method.
d. It is more intrusive than telephone surveys.
Social media marketing content focuses on its audience rather than promoting the
company outright.
a. True
b. False
The buying center is an informal group whose size and composition varies among
purchase situations and firms.
a. True
b. False
A college education is an example of a pure product on the goods-services continuum.
a. True
b. False
A(n) _____ is a tool that helps marketers place products in a market by graphically
illustrating consumers’ perceptions of competing products within an industry.
a. target market
b. market segmentation
c. cohort effect
d. primary metropolitan statistical area
e. differentiated marketing
f. concentrated marketing
g. micromarketing
h. positioning map
i. VALS
j. AIO statement
k. core region
l. consumer product
m. demographic segmentation
n. Pareto’s law
o. psychographic segmentation
p. geographic information systems
q. positioning
r. geographic segmentation
s. business product
t. mass marketing
Which of the following statements is true regarding the influence of organizational
factors on purchasing decisions?
a. Centralized buying tends to emphasize short-term results.
b. Personal selling skills and user preferences carry more weight in decentralized
purchasing situations.
c. Consolidating vendor relationships increases the company’s overall expenses.
d. Decentralized buying focuses more on long-term relationships with suppliers.
Ryan, a successful entrepreneur, is planning to get into the petroleum business. He has
bought two jack-up rigs running into millions of dollars to start the business. These rigs
are examples of:
a. installations.
b. accessory equipments.
c. supplies.
d. component parts.
The organizational buying process has more steps than the consumer buying process,
which can be attributed to:
a. shorter durations of customer relationships formed in business markets.
b. less standardized products sold in consumer markets.
c. lack of interpersonal and environmental influences on consumer buying decisions.
d. relatively complex buying process with greater number of decision makers in
business markets.
A regional business association has asked you to participate in a panel discussion about
NAFTA. Your company has benefited greatly from this accord, so you plan to strongly
defend it. However, you must prepare to counter common criticisms of NAFTA,
including:
a. It may encourage dumping of United States goods into Canada.
b. It may cause the loss of United States jobs to cheap labor in Mexico.
c. It is leading to controversial political integration among the member nations.
d. It includes an unwieldy number of member nations.
e. It has not been in existence long enough to have an effect.
Which of the following is a characteristic of a corporate culture that encourages ethical
behavior?
a. Salespeople focus on short-term or quick sales.
b. Management focuses only on sales and profits.
c. Open communication exists between employees and managers.
d. Management announces discounts on bulk sales to wholesalers.
Special Confectioners, a major chocolate company, has recently started promoting its
festive packs with the tag line, “making each moment special.” By doing so, the
management is trying to make its customers realize the everyday relevance of their
festive packs. In doing so, the company is attempting to extend the product lifecycle by:
a. increasing the number of users.
b. finding new uses for the product.
c. changing product quality.
d. increasing the frequency of use.
The receiver’s response, known as _____, completes the communication process.
a. epistle
b. encoded message
c. feedback
d. channeled data
A local restaurant is considering offering breakfast and is interested in determining how
many people visit other restaurants in the local area for breakfast. The owner hires a
group of marketing students from the local university and their task is to visit the
various restaurants and keep a tally of the number of people who dine in the restaurant
and/or order from the drive-through window during a 1-week period between the hours
of 6 a.m. and 10 a.m. Which method of data collection are the students using?
a. observation
b. interpretive research
c. survey research
d. personal interviews
Flexible cost-plus global pricing allows companies to grant discounts or change prices
according to shifts in the competitive environment or fluctuations in the international
exchange rates.
a. True
b. False
At the third level of relationship marketing, buyer-seller relationships are transformed
structurally into business partnerships.
a. True
b. False
Fizzy Cola Company created a sample containing 25 of their regular cola drinkers, 25
of their diet cola drinkers, and 25 of their diet caffeine-free drinkers. They created the
sample by stopping people on the street and continuing until they had spoken to enough
people to meet the requirement. Such a sample is a nonprobability cluster sample.
a. True
b. False
You have been chosen to serve as a member of the committee that will select finalists
for the Malcolm Baldrige National Quality Award established by the U.S. Congress.
Required:
Which of the following companies would you select as one of the finalists for the
award?
a. a company with high market share
b. a company with low employee turnover rates
c. a company that ranks high on customer satisfaction
d. a company that has received the ISO 9001:2008 certification
e. a company that is typically referenced as a benchmark partner
Corea Inc., a pharmaceutical company, is involved in the research, development,
manufacture, and marketing of prescription medicines. A new drug developed by Corea
has been awarded patent rights by the U.S. Food and Drug Administration. The patent
grants them exclusive rights to manufacture and market the drug for 3 years. Based on
this information, which of the following statements will be true?
a. Corea Inc. will operate in a market with monopolistic competition.
b. Corea Inc. will have exclusive rights to produce and market the product forever.
c. Corea Inc. will operate in a perfectly competitive market.
d. Corea Inc. will have a temporary monopoly in the market for this drug.
An expensive gift could be interpreted as a bribe if given in anticipation of doing
business with a buyer or company.
a. True
b. False
One of the main goals of internal marketing is to keep the employees informed about
corporate goals, strategies, and customer needs.
a. True
b. False
You are the head of market strategies for a large media company, and you are
responsible for leading the enterprise through its annual marketing planning process.
Which one of the following statements is true about this process?
a. Your organization’s objectives are the essential set of statements that outlines its
purpose and differentiates it from other organizations.
b. Your organization’s objectives specify the organization’s goals and operational scope.
c. After your firm establishes its objectives, the next step in the marketing planning
process is to develop the marketing strategy.
d. The last step in your marketing planning process should include an analysis of the
risks and opportunities that you will face in striving to achieve your objectives.
e. Your organization’s objectives should be specific in describing what achievements
are intended and desired.
Companies use which of the following primarily to increase their visibility and provide
information?
a. Company websites
b. Ecommerce
c. Intranets
d. Emarketing
e. Marketing websites
A line extension involves the addition of new sizes, styles, flavors, or related products
to an existing group of products.
a. True
b. False
Intermediaries that operate between producers and resellers are known as wholesalers.
a. True
b. False