_____ is a form of exporting in which a firm barters products rather than selling them
for cash.
a. Subcontracting
b. Free trade
c. Countertrade
d. Franchising
When Tom decided to buy a washing machine, he had very little knowledge of
competing products in the market. He did research on the Internet, talked to his friends,
and compared features of different models. Finally, he decided to buy an LG top load,
semi-automatic washing machine. This is an example of buying a(n) _____.
a. shopping product
b. staple
c. convenience product
d. specialty product
A company that groups its customers into categories like manufacturers, wholesalers,
and retailers based on buyer’s product specifications, is using the psychographic
segmentation approach.
a. True
b. False
Given the rapid pace of technological innovation over the last few decades, the
technological forces a firm must contend with are arguably the most dynamic of all the
forces impacting the marketing environment. These technological forces can have either
negative or positive implications for the firm. Which of the following statements is true
about technology in a marketing context?
a. Technology can lead to new products and services for a firm, but seldom has any
impact on existing products and services.
b. Technological changes can be expensive, and always lead to higher production and
distribution costs.
c. Technological innovations only come from the private sector of the economy.
d. Many technological innovations, such as the Internet, come from the government
sector.
e. Notforprofit companies do not produce technological innovations.
According to the BCG market share/market growth matrix, the SBU that produces
strong cash flows which can be used to finance the growth of other SBUs is the:
a. dog.
b. question mark.
c. cash cow.
d. laggard.
Tina is a customer service representative for an Internet service provider. While dealing
with elderly customers, Tina takes extra time and effort in explaining to them how to
access the Internet, check emails, and browse the Web. She understands their point of
view, and realizes that they may need more explanation than the tech-savvy, younger
generation. By doing so, which of the following variables of service quality is being
demonstrated by Tina?
a. Associability
b. Tangibles
c. Empathy
d. Substitutability
The payback period in a customer relationship is the length of time it takes to break
even on customer acquisition costs.
a. True
b. False
Which of the following is the most effective way for a sales manager to motivate
salespeople to give their best?
a. Setting annual goals for individuals instead of quarterly or monthly goals
b. Setting extremely high targets
c. Recognizing their efforts and offering simple incentives
d. Creating expensive incentive programs
According to Maslow, an individual’s desire to realize his full potential and find
fulfillment by expressing his unique talents and capabilities can be regarded as his
_____ needs.
a. self-actualization
b. physiological
c. social
d. esteem
Which of the following best describes the activity of promotion?
a. Making new products available to meet consumer demand
b. Finding a convenient location to sell the products in
c. Maintaining a high level of regulation in production
d. Communicating between buyers and sellers
It can be said that Glen Inc., a woolen products manufacturing company based in
Switzerland, is a firm that uses a marketdriven strategy because it produces goods based
on local customers’ experiences, needs, and preferences.
a. True
b. False
Food manufacturers often set up tables in grocery stores where customers can sample
featured products. The goal of this type of promotion is to specifically influence the
_____ component of attitude.
a. behavioral
b. emotional
c. cognitive
d. affective
When H&C Research Corporation wanted to test the popularity of a new flavor of ice
cream, they selected a number of U.S. cities as test sites, and then randomly selected
supermarkets within those cities as trial vendors. This is an example of quota sampling.
a. True
b. False
The _____ is defined as the revenues and intangible benefits that a customer brings to
the seller over an average lifetime of their relationship, less the amount the company
must spend to acquire, market to, and serve the customer.
a. strategic alliance
b. relationship marketing
c. cobranding
d. frequency marketing
e. value chain
f. database marketing
g. exponential smoothing
h. customer relationship management
i. trend analysis
j. internal customers
k. comarketing
l. quick-response merchandising
m. affinity program
n. lifetime value of a customer
o. Delphi technique
p. national account selling
q. transaction-based marketing
r. customer churn
s. buzz marketing
t. grassroots marketing
The VALS system will categorize consumers who are influenced by symbols of success
as:
a. action-motivated consumers.
b. achievement-motivated consumers.
c. principle-motivated consumers.
d. self-expression motivated consumers.
Trek Bicycles recently launched an effective social media marketing campaign to
celebrate the retirement of professional racer, Jens Voigt using #HourRecord and
determined that 85% of people in the target market were reached with this campaign.
This percentage is called _______.
a. reach
b. frequency
c. distribution
d. return on investment
A distribution warehouse holds goods for moderate to long periods in an attempt to
balance supply and demand for producers and purchasers.
a. True
b. False
An alliance between a notforprofit organization and a forprofit organization:
a. rarely benefits either party.
b. often benefits both parties.
c. typically benefits the notforprofit more than the forprofit.
d. typically benefits the forprofit more than the notforprofit.
DHL is one of the top companies specializing in handling logistics activities to other
firms especially in the international sector. For example, DHL was under contract to
assist Prestige Distributors to transport a container ship of French wine to the United
States and provided its expertise to ensure transportation from each wine maker to the
port as well as managed all export duties. In this case, DHL is operating as a(n):
a. third-party logistics firm
b. upstream management contractor
c. downstream management contractor
d. administered logistics provider
Apex Corp. has been manufacturing furniture for past several years. Now in order to
grow its business, the company has decided to manufacture curtains and bed sheets. The
strategy being used by the company to target new markets is referred to as a _____.
a. product association strategy
b. market simulation strategy
c. market engagement strategy
d. product diversification strategy
The advertising director, marketing research manager, and other middlelevel managers
have the primary responsibility of devising and implementing the strategic plan of the
company.
a. True
b. False
Some manufacturing companies prefer to sell only highpriced specialty products online
because:
a. the companies want their customers to use online banking rather than cash for the
transaction.
b. the customers are not able to purchase specialty items from store locations.
c. the warehousing costs for specialty products can erode any profits to be made from
their sales.
d. the companies do not wish to enter into a direct competition with its wholesale and
retail partners.
The introduction of a new brand into an array of familiar brands for which a consumer
has previously set evaluative criteria may create the need for:
a. limited problem solving.
b. extended problem solving.
c. routinized problem solving.
d. intensive problem solving.
Tanisha is the manager of a grocery store in a beach town. During the summer, many
vacationers visit the store. Although the store experiences an increase in total revenue
during these months, Tanisha believes that she can boost sales further by expanding the
grocery store’s offerings to include nonfood items that vacationers might need. Tanisha
is going to start stocking sunscreen, sand toys, postcards and travel guides, and even
some inexpensive beach wear.
What marketing strategy does Tanisha’s decision best demonstrate?
a. retail convergence
b. scrambled merchandising
c. targeted marketing
d. mass merchandising
e. specialty retailing
Which of the following products is most likely to have a long distribution channel?
a. Mining equipments
b. Bars of soap
c. Dairy products
d. Drinks sold in a vending machine
Culture is the broadest environmental determinant of consumer behavior.
a. True
b. False
A global marketing strategy works well for products with strong, universal appeal and
for high-tech brands and luxury products.
a. True
b. False
SUVs produced by different automobile companies constitute a single product line.
a. True
b. False
Five years ago, Joshua spent 28 percent of his $45,000 yearly income on his bachelor
apartment. Today, Joshua is earning $60,000 annually. According to Engel’s laws, the
percentage of income he will spend on his new apartment will be:
a. more than 70 percent.
b. the same as it was back then, about 28 percent.
c. about 50 percent.
d. less than 10 percent.
In recent years, consumers have become increasingly concerned about the use of
pesticide and other chemicals in the agricultural industry. Some are worried that the
increased use of chemicals has led to higher incidences of disease such as cancer.
Consumers who share these opinions will often purchase products labeled “organic”
and “natural”. Marketers who are utilizing these words on product packaging or in their
promotions are implementing _______ segmentation.
a. psychographic
b. benefit
c. geographic
d. demographic
Relationship marketing refers to a firm’s effort to develop longterm, costeffective links
with individual customers and suppliers. Many companies:
a. have been reluctant to adopt such initiatives because there is no evidence of their
effectiveness.
b. focus on relationship marketing as the sole purpose of their marketing research
efforts.
c. include relationshipbuilding goals and strategies in their larger plans for the
organization.
d. believe that relationship marketing is just a fad and may not be sustainable or
profitable in the long run.