Advertising can change consumers’ deeply rooted values and attitudes.
a. True
b. False
A firm that acknowledges the importance of all four marketing mix decisions (product
decisions, place or distribution decisions, promotion decisions, and pricing decisions) is
a ______ firm.
a. salesoriented
b. marketoriented
c. productionoriented
d. societaloriented
The composition and appearance of a product that make it desirable constitute its
______ utility.
a. form
b. time
c. exchange
d. place
www.ebay.com is the most popular extranet in the United States.
a. True
b. False
Which of the following relationship marketing levels is also referred to as customer
intimacy?
a. Structural level
b. Social level
c. Financial level
d. Customization level
Which of the following is a characteristic of market grouping?
a. It occurs when government efforts stifle imports or investment by foreign
corporations.
b. It occurs when several countries agree to work together to form a common trade area.
c. It occurs when a trade agreement dramatically lowers trade barriers across the world.
d. It occurs when a domestic firm joins with a foreign company to create a new entity.
_______________ is the exclusive right to use a tangible product brand or part of a
product brand.
a. A service mark
b. Family branding
c. A trademark
d. A captive brand
Which of the following becomes the main goal of promotion when the product enters
the growth stage of its life cycle?
a. Reminder promotion
b. Persuasive promotion
c. Informative promotion
d. Connective promotion
Felista Inc., a company which deals in dairy products, adheres to a standard of behavior
for its employees, and follows certain practices that reflect the moral principles and
values held by the company, and guide the conduct of the individuals in the company.
Which practice is described in this scenario?
a. Business ethics
b. Corporate governance
c. Principles of management
d. Rules and regulations
Which statement best describes a similarity between price fixing and predatory pricing?
a. Both are illegal under the Federal Trade Commission Act.
b. Both are finetuning techniques that do not change the general price level.
c. Both typically discourage and block competition from entering a market.
d. Both may ignore demand or cost or both.
Promotion is one of the components that forms a marketing mix.
a. True
b. False
Eatalia is a popular chain of restaurants for authentic Italian food. Recently, a customer
found a dead insect in the pasta he was served. The customer’s negative review about
the restaurant went viral. Eatalia’s chief executive officer (CEO) publicly apologized
for the mishap and posted pictures of the restaurant’s kitchen, after being fumigated, on
several social networking websites. In this scenario, which of the following does
Eatalia’s CEO demonstrate?
a. Audience control
b. Crisis management
c. Lethargy
d. Experiential selling
Simultaneous production and consumption means that services normally cannot be
produced in a centralized location and consumed in decentralized locations.
a. True
b. False
The managers at ClicktoDoor, an ecommerce website, closely monitor its rival online
retailers to analyze how consumers respond to changes in the prices of certain products.
They use the results of this analysis to constantly change the prices on their website to
maximize sales and profits. In this case, which of the following pricing strategies does
ClicktoDoor follow?
a. Comparative pricing
b. Dynamic pricing
c. Capacitive pricing
d. Dependent pricing
In the context of customer relationship management (CRM), _____ offers marketers a
more costeffective way to reach customers and enables businesses to personalize their
messages.
a. repositioning
b. undifferentiated targeting
c. cannibalization
d. new technology
Nessca Solutions Inc. recently created a hardware and software system for transmitting
data among different departments within the firm. The system provides an easy and
quick way of exchanging information. This has increased the firm’s efficiency while
reducing costs. With regard to demandsupply integration, this is an example of _____
integration.
a. measurement and feedback
b. material and service supplier
c. customer
d. technology and planning
A form of advertising that firms use when a product enters the growth phase of the
product life cycle and other companies begin to enter the marketplace is called
______________.
a. advocacy advertising
b. pioneering advertising
c. competitive advertising
d. comparative advertising
As output is increased or decreased, the ______ costs remains unchanged.
a. marginal
b. dependent
c. fixed
d. opportunity
Pioneering advertising is heavily used during the _____ of the product life cycle.
a. introductory stage
b. growth stage
c. formative stage
d. conception stage
Rolex is a prestigious brand of watch that is sold as a luxury product. It has a reputation
based on quality and attention to detail. When the company introduces new timepieces,
it can count on an existing, wellestablished market for its new products due to:
a. stimulus generalization.
b. stimulus discrimination.
c. perceptual generalization.
d. selective distortion.
Ingredient branding occurs when two brands receiving equal treatment borrow from
each other’s brand equity.
a. True
b. False
In the _____ of the product life cycle, the promotional strategy is to emphasize the
product’s differential advantage over the competition.
a. growth stage
b. decline stage
c. maturity stage
d. introduction stage
Jane is a 16yearold sophomore. She stays abreast of the latest technology and educates
her parents about the latest trends in technology. She convinced them to replace her old
cell phone with a new one. Given this information, Jane is a _____.
a. tween
b. teen
c. Gen Xer
d. Gen Yer
_____ helps marketers develop marketing programs tailored to prospective buyers who
live in small regions or who have very specific lifestyle characteristics.
a. Benefit segmentation
b. Family life cycle segmentation
c. Ethnic segmentation
d. Geodemographic segmentation
________________ represent a series of thick and thin vertical linesreadable by
computerized optical scanners that represent numbers used to track products.
a. Universal product codes
b. Product lines
c. Brand labels
d. Informational labels
The stage in which multinationals set up foreign subsidiaries to handle sales in one
country is the _______________ in developing a global business.
a. first stage
b. second stage
c. third stage
d. fourth stage
Ketchup King, a food manufacturing company, markets its tomato ketchup globally. As
its consumers are well aware of the uses of ketchup, the company does not have to
generate product awareness. The company, however, wishes to focus on convincing
consumers to buy Ketchup King’s ketchup instead of other brands’ ketchup. In this
scenario, Ketchup King must employ _____.
a. reminder promotion
b. persuasive promotion
c. informative promotion
d. connective promotion
Noncomputer sources are not valuable in gathering competitive intelligence (CI).
a. True
b. False
During an external information search, a consumer is most likely to enlarge his search
and consider more alternative brands when:
a. the consumer is knowledgeable and well informed about a potential purchase.
b. the perceived risk of the product or service to be purchased increases.
c. the consumer is confident of making a purchase decision with the information at
hand.
d. the product or service to be bought is a frequently purchased, lowcost item.
Which of the following is a similarity between raw materials and component parts?
a. Both fail to retain their identity in final products.
b. Both become part of a final product.
c. Both are unprocessed extractive products.
d. Both are more expensive than major equipment.
Which of the following defines the sales process?
a. The process of identifying the firms and people most likely to buy the seller’s
offerings
b. The process a salesperson goes through to sell a particular product or service
c. The process of finding out about potential clients from various contacts or sources
d. The process of a salesperson doing his or her “homework” before contacting a
prospect
Demography is a controllable variable in the external environment.
a. True
b. False
Which congressional act protects consumers against terrorist actions?
a. RobinsonPatman Act of 1936
b. Federal Trade Commission Act of 1914
c. Sherman Act of 1890
d. Homeland Security Act of 2002