During which of the following stages in the product lifecycle, do industry sales of the
product level out?
a. Introductory stage
b. Growth stage
c. Maturity stage
d. Decline stage
Charles Schwab, an equity investment company, will face the risk of cannibalization
from its e-tail channel, Schwab.com, if:
a. it attempts to lure customers within the Schwab database.
b. it branches out into mutual funds and tax-deferred investments.
c. it makes price cuts and creates competition with the parent company.
d. it allots all its best personnel to work at the online firm.
References to the Internet’s global reach have to do with its:
a. ability to communicate with consumers located anywhere in the world.
b. capacity to overcome cultural barriers between nations.
c. power to insulate national economies from events occurring outside their borders.
d. ability to use a single language, English, to communicate with world markets.
The statement of Starbucks to “inspire and nurture the human spirit – one person, one
cup and one neighborhood at a time” is an example of a mission statement.
a. True
b. False
The existing U.S. legal framework was constructed in a logical, systematic manner,
resulting in a coherent and easily understood body of laws.
a. True
b. False
Pharmaceutical companies often get patents granting them the exclusive right to
produce and market drug formulations they have developed. These patents are:
a. the result of noncompete agreements signed by pharmaceutical firms.
b. in violation of ethical principles on which business is based.
c. probably of little use because what one firm can patent, another can duplicate.
d. rewards for the millions that firms have invested in the research and development
process.
Sound systems, batteries, and tires that are included in the manufacturing of a car are
examples of:
a. installations.
b. accessory equipment.
c. component parts and materials.
d. supplies.
The gross profit margin is the percentage of each sales dollar that a firm earns in profit
after all expenses have been paid.
a. True
b. False
A consumer problem solving behavior in which the consumer makes purchases
ordinarily by choosing a preferred brand or one of a limited group of acceptable brands
is called _____.
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
The advertiser’s challenge in interactive advertising is to gain and hold consumer
interest in an environment where these individuals control what they want to see.
a. True
b. False
The influence of reference groups is more significant in case of children, when
compared to adults.
a. True
b. False
Message research assesses how well a particular medium delivers the advertiser’s
message, where and when to place the advertisement, and the size of the audience.
a. True
b. False
Walmart is the world’s largest private employer and the largest retailer.
a. True
b. False
If merchandise selection changes frequently to follow fashion trends, advertising is
typically used to promote current styles effectively.
a. True
b. False
Marketers’ emphasis on targeting smaller market segments has increased the
importance of packaging as a promotional tool.
a. True
b. False
The process of applying a series of rewards and reinforcements to permit more complex
consumer behavior to evolve is known as ____.
a. scaling
b. screening
c. shaping
d. shadowing
Prior to making the approach to a potential customer, the salesperson should:
a. outline objections and effective responses.
b. break down product features and benefits by category.
c. understand the way in which the industry operates.
d. collect and analyze information about the potential customer.
A major drawback to a global marketing strategy is its high cost of implementation.
a. True
b. False
Many hotel chains offer free stays and other perks to repeat customers. This is an
example of:
a. relationship marketing.
b. transactionbased marketing.
c. interactive marketing.
d. social marketing.
Goods and services purchased by the ultimate consumer for personal use are called
_____ products.
a. business
b. primary
c. consumer
d. secondary
Auctions such as eBay are considered the purest form of negotiating prices.
a. True
b. False
Which of the following functions as a manufacturer’s representative?
a. An industrial distributor
b. A broker
c. A wholesaler
d. A retailer
A rise in perceived quality or public opinion about a brand enhances the brand’s esteem.
a. True
b. False
Deborah relies on direct selling to market her jewelry designs. She uses all of the
following approaches and tools except:
a. The Internet
b. Direct mail
c. Independent representatives
d. Retailers
e. Party plans
You work for a drug company and have been asked to advise company executives about
the manufacturing of generic versus branded pharmaceuticals. Which of the following
arguments could you use if you were trying to convince the executives that branded
drugs are the way to go?
a. Generic brands are easier to locate.
b. Brand–name drugs cost less to manufacture.
c. It costs more to market generic brands.
d. Brand–name drugs are chemically identical to generic drugs.
e. Customers sometimes feel more secure about purchasing brand–name drugs.
The Telecommunications Act of 1996 was passed to:
a. set annual fees for telemarketers to access the Do Not Call Registry.
b. create the national Do Not Call Registry prohibiting telemarketing calls to registered
numbers.
c. deregulate the telecommunication industry by removing barriers to competition.
d. prohibit the sale of cell phone records.
The management at Granger Industries is evaluating their distribution system to
determine if cost-cutting measures will impact performance. Ralph, an employee with
experience in the implementation of total quality management programs, suggests that
the company should consider synergies between elements of the distribution system
instead of judging each activity on its own merits. Ralph is trying to avoid:
a. polarization.
b. suboptimization.
c. the optimism bias.
d. the framing problem.
A firm that divides its customers into homogeneous groups based on their locations is
said to be practicing _____ segmentation.
a. psychographic
b. product-based
c. geographic
d. demographic
Integrated marketing communications (IMC) broadens promotion to include all the
ways a customer has contact with an organization.
a. True
b. False
Best Health Labs is a company that provides medical diagnostics services. The
company is focused on providing rapid diagnostic and healthcare services based on the
philosophy of high quality, low price and superior flexibility. The marketing team
coordinates all its promotional activities to convey a unified message to the customers
regarding its philosophy of making medical diagnostics more affordable for people
around the world. The strategy of the marketing team at Best Health Labs is called
_____.
a. righttime marketing
b. integrated marketing
c. interactive marketing
d. personalized marketing
Consumer behavior refers to the process through which ultimate buyers make their
purchase decisions.
a. True
b. False
_____ involves marketing philosophies, policies, procedures, and actions whose
primary objective is the enhancement of society.
a. Social responsibility
b. Customer orientation
c. Ethics
d. Relationship marketing