A flooring manufacturer has experienced an increase in sales of laminate flooring in the
stores located in the southeastern region of the United States. A recent marketing plan
identifies that cork flooring will be introduced in the same stores before rolling out to
the rest of the country. What effect is this manufacturer at risk of experiencing with this
strategy?
a. shop bot
b. bundling
c. price fixing
d. dual pricing
e. cannibalization
The process through which a manufacturer attempts to gain greater control over inputs
in its production process, such as raw materials, is called _____ integration.
a. balanced
b. horizontal
c. synergic
d. backward
Which of the following is most likely to be a reason why consumers prefer shopping
online?
a. Only online purchases offer reduced rates to customers on branded credit cards.
b. Emarketers offer better warranties on products compared to brick and mortar
retailers.
c. Products that are purchased online are delivered free of cost whereas brick and
mortar stores charge customers for delivering goods to their door steps.
d. Online stores allow customers to compare prices and features at their leisure.
Operational planning that involves the creation and implementation of tactical plans for
the departments within an organization is primarily the responsibility of toplevel
management.
a. True
b. False
Detergent packets purchased by a leading laundry service are considered business
products.
a. True
b. False
Firms spend more on consumer-oriented sales promotions than on trade promotions.
a. True
b. False
In the context of relationship marketing, the primary bond created by a second-level
relationship marketing program is usually _____ in nature.
a. social
b. financial
c. structural
d. notional
The traditional channel for consumer goods proceeds from producer to wholesaler to
retailer to user.
a. True
b. False
The manufacturer of safety wallets is determining the retail price to charge for each unit
sold. Which approach should the manufacturer use that supports the psychological
pricing strategy?
a. set the price at $24.97
b. set the price at $25.00 for the first item and $5 for the second
c. set the price according to the number of unrelated products sold
d. set the price according to the number of variations of the wallet style
e. set the first unit sold at full price and the second purchased at half price
Manufacturers of vitamins and nutrition supplements have greater freedom in the
manufacture and marketing of their products since many of their products are not
regulated by the _______ in the same way that drugs are since doubleblind efficacy
studies are not required.
a. FDA
b. FTC
c. EPA
d. EEOC
The five dimensions of the marketing environment are competitive, politicallegal,
economic, technological, and socialcultural.
a. True
b. False
Franchising is a low risk way to enter a foreign market as it offers a proven concept.
a. True
b. False
As part of his marketing research duties, Neal evaluates the expenses incurred by his
company for selling, warehousing, advertising, and delivering the products. Neal is
engaging in:
a. exploratory sales review.
b. interpretative research.
c. business process reengineering.
d. marketing cost analysis.
Stinson’s, a chain of luxury department stores, uses a unique twodimensional code on
pamphlets and brochures that can be read by mobile phones with cameras. These codes
provide detailed information regarding the products available in the store along with
their prices. Which of the following are being used by Stinson’s in the above scenario?
a. Apps
b. Fact tags
c. QR codes
d. Social networks
Gray goods are products manufactured abroad under license from a U.S. firm and then
sold in the U.S. market in competition with that firm’s own domestic output.
a. True
b. False
A target market is a group of customers toward whom a firm directs its marketing
efforts.
a. True
b. False
A customer-focused firm wants its sales representatives to:
a. work on commission because it motivates them to engage in quick sales.
b. form long-lasting relationships with buyers by providing high levels of customer
service.
c. focus on persuading customers to buy products rather than solving issues.
d. work as separate entities independent of the sales team.
_____ represent units with high market shares in highgrowth markets.
a. planning
b. marketing planning
c. strategic planning
d. tactical planning
e. cash cows
f. first mover strategy
g. SWOT analysis
h. strategic window
i. marketing mix
j. product strategy
k. strategic business units
l. Porter’s Five Forces
m. marketing strategy
n. dogs
o. stars
p. annual growth rate
A committee of city council members is searching for a new vendor for trash and
recyclables removal in the community. Which mechanism provides the committee with
information about the prices vendors charge to perform this service?
a. leader bidding
b. negotiated bidding
c. product-line bidding
d. promotional bidding
e. competitive bidding
Why do marketers in most industries have difficulty making estimates and predictions
beyond five years?
a. Marketers rarely stay in the same job for more than five years.
b. There are many uncertainties in the marketplace.
c. The margin for error in longterm forecasting is very small.
d. The cost involved limits predictions beyond five years.
With database marketing, firms use technology to analyze data about customers and
their transactions. It has many implications for firms including:
a. It helps firms identify their most profitable customers.
b. It eliminates the need for loyalty programs.
c. It leads to 100% customer retention.
d. It gets some of its data from employer records.
e. It increases the lifetime value of each customer’s business.
Newsletters, catalogs, and invitations to companysponsored events are most closely
associated with the marketing mix activity of:
a. product pricing.
b. product distribution.
c. product development.
d. product promotion.
The primary decision maker who runs a firm’s social media program is called a(n)
_____.
a. content manager
b. online community manager
c. social media strategist
d. social media designer
Personal selling is an important component of the promotional mix for a firm that
markets to relatively few potential customers.
a. True
b. False
John works for an ice-cream manufacturer. His department focuses on keeping the
finished products fresh as well as ensuring that they reach the retailers on time as the
products are highly perishable. In addition, his department decides on which flavors of
ice cream should be sent to which retailers in various trade areas. John is most likely
involved with:
a. reverse management.
b. horizontal integration.
c. downstream management.
d. backward integration.
Which of the following products forms a major part of U.S imports?
a. Agricultural products
b. Iron ore
c. Medical equipments
d. Crude oil
_____ marketing programs are designed to reward top customers with cash, rebates,
merchandise, or other premiums.
a. Frequency
b. Social
c. Internal
d. Affinity
A pricing method that attempts to use only costs directly attributable to a specific output
in setting prices is known as _____.
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
Secondary data has the advantage of being more completely relevant to the research
than primary data.
a. True
b. False
A _____ pricing strategy permits marketers to control demand in the introductory stages
of a product’s life cycle and then adjust productive capacity to match changing demand.
a. penetration
b. value-added
c. skimming
d. competitive
With respect to the BCG matrix, which one of the following generates considerable
income, but requires sizeable investments to underwrite further growth in the future?
a. Cash cows
b. Stars
c. Question marks
d. SBUs
e. Dogs
A&S Corp. regularly ships its products to its warehouses. The company ships three
truckloads of merchandise biweekly using the services of the same trucking company.
The trucking company on its part provides A&S Corp. a subsidized rate because it gets
regular business from A&S Corp. The discounted rate thus charged is called a _____
rate.
a. special
b. flat
c. spot
d. class
What are the three primary steps involved in building a website?
What are sustainable products? What are the benefits of sustainability efforts?
Discuss the various factors that an organization should consider while taking the make,
buy, or lease decision.
What do buyers expect from professional salespeople?
Discuss the benefits of modified breakeven analysis.
List out the four phases in the history of U.S. government regulations. Why were these
regulations passed?
Describe the unique challenges of selling to government markets.
What is eprocurement? What are its benefits?
What are evaluative criteria? What are some of the evaluative criteria a consumer might
use while searching for an apartment?
Discuss Maslow’s hierarchy of needs and list a product that can be promoted to fulfill
each of the different levels of needs.
Define utility and discuss the four types of utility. Give examples and list the functional
areas within an organization that are responsible for each.
What is trade promotion? What are the different trade promotion methods used by
marketers?
Discuss the three types of contractual marketing systems.
What is a strategic alliance? Why do firms engage in strategic alliances?
As a marketing research intern for a personal-care products company, you are asked to
present information on the learning process to the marketing department. Discuss the
elements of learning you would include in your presentation. What advice would you
give your peers about shaping?
How are retailers classified on the basis of form of ownership? Explain the advantages
of each type of ownership.