Forming a joint venture is the best way to enter into foreign markets that are regarded
as developing economies.
a. True
b. False
Which of the following focuses on the environment in which the marketing plan is to be
implemented?
a. Production plan
b. Competitive analysis
c. Mission statement
d. Executive summary
A simple random sample is a nonprobability sample selected from among readily
available respondents.
a. True
b. False
When the term social media is mentioned, most consumers immediately think of
Facebook. However, social media is actually a collection of different forms of online or
electronic communication that enable users to exchange ideas, information, messages
and other content online. Suppose that you are a marketing professional and you want
you expand your company’s use of social media to build and enhance your relationships
with your customers. More specifically, you would like to create a community of users
of your products so they can share ideas and your firm can maintain an ongoing
dialogue with them. In order to accomplish this, you would build which of the
following?
a. A social media commerce site
b. A social media bookmarking site
c. A social media platform
d. A social media ratings site
e. A social media news site
When personal selling efforts use telephone technology in a sales approach where the
sales representative initiates the calls, it is known as _____ telemarketing.
a. inbound
b. proactive
c. network
d. outbound
Nadine is an account manager with an insurance brokerage company who provides
specialized services to K-12 public and private schools as well as churches and
non-profit organizations. Which term best describes Nadine’s target market?
a. institutional market
b. government market
c. charity market
d. commerce market
Jackie works in the custom lens department of Maui Jim sunglasses and prepares lenses
for prescription sunglasses that the company receives from its network of specialty
eyeglass retailers. Based on relationship marketing principles, which term best
classifies Jackie?
a. internal customer
b. external customer
c. integrated customer
d. support customer
Proactive MPR responds to an external situation that has potential negative
consequences for an organization.
a. True
b. False
Strategic alliances are necessary in countries where local laws require foreign
companies to work with local businesses.
a. True
b. False
Public relations efforts such as publicity frequently offer lesser credibility than other
promotional techniques.
a. True
b. False
Your friend works for a hotel in downtown Pittsburgh primarily serving business
travelers. Choose all of the following yield management strategies that he is likely to
use.
a. Higher prices on weekdays.
b. Lower prices on weekends.
c. Lower prices for rooms booked after 10:00 P.M. for a stay the same night.
d. Lower prices for weekday stays extended through Saturday.
e. Prices on all days lower than competition.
Creative selling mainly deals with maintaining existing business with customers.
a. True
b. False
Marketing strategies that work for a particular cultural group in the United States will
always work when applied to the same cultural group abroad.
a. True
b. False
The strategy of using a relative low entry price compared with competitive offerings to
secure market acceptance is called a(n) _____.
a. competitive bidding
b. penetration pricing strategy
c. list price
d. trade discount
e. price flexibility
f. promotional pricing
g. loss leader
h. cannibalization
i. bundle pricing
j. odd pricing
k. transfer price
l. profit center
m. skimming pricing strategy
n. competitive pricing strategy
o. pricing policy
p. market price
q. noncumulative quantity discount
r. step out
s. bot
t. cash discount
Often, the desirability of partnering in the business market is based on the fact that each
firm brings to the partnership something the other needs but cannot provide on its own.
a. True
b. False
A nation’s size, per capita income, and stage of economic development determine its
prospects as a host for international business expansion.
a. True
b. False
Which of the following is a possible disadvantage of outsourcing?
a. It increases the expenses incurred by the company to remain competitive in the
market.
b. It compromises on the quality and speed of production.
c. It slows down the company’s efforts in bringing new products to market.
d. It is not suitable for jobs such as human resources and accounting.
Targeting a large number of small markets can produce an expensive, complex, and
inefficient marketing strategy.
a. True
b. False
You are responsible for writing the statements of organizational goals to be included in
the mission statement of your retail company. Choose the goal(s) that are not stated
appropriately for this purpose.
a. Add 5 new stores each quarter of the next two years.
b. Create an aura of prestige.
c. Improve recycling by 10 percent within six months.
d. Reduce the costs of employee turnover by 5 percent within a year.
e. Add two new clothing designers to your list of vendors within a year.
Prestige pricing objectives emphasize:
a. quality and exclusivity.
b. revenue maximization.
c. cost minimization.
d. sales maximization.
Lululemon Athletica, which specializes in athletic wear for women, recently launched a
website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on
the information given in this example, Lululemon Athletica is using _____
segmentation to segment its markets.
a. geographic
b. psychographic
c. demographic
d. core based
A(n) _____ is a large store that combines groceries with discount store merchandise.
a. stock-keeping unit (SKU)
b. markup
c. markdown
d. retail convergence
e. scrambled merchandising
f. atmospherics
g. broker
h. general merchandise retailer
i. category killer
j. rack jobber
k. supercenter
l. auction house
m. specialty store
n. retailers
o. mass merchandiser
p. truck jobber
q. direct marketing
r. drop shipper
s. planned shopping center
t. wheel of retailing
A retailer wants to increase the number of customers shopping in her store. Which of
the following has the greatest potential for success?
a. Promotional pricing
b. Price flexibility
c. Prestige pricing
d. Unit pricing
Which of the following is the most important measure of relationship marketing
programs in both consumer and business-to-business markets?
a. Cost of the marketing program
b. Click-through behavior on websites
c. Lifetime value of a customer
d. Debt to equity ratio
A multidomestic marketing strategy can be used by a firm in all of its domestic and
foreign markets without any modifications.
a. True
b. False
Phishing involves the use of authenticlooking email or popup messages to get
unsuspecting victims to reveal personal information.
a. True
b. False
The first step in measuring customer satisfaction involves comparing actual sales to
forecasted sales.
a. True
b. False
Geographic location is one of the criteria considered during demographic segmentation
of the business market.
a. True
b. False
Detailed organizational objectives should state specific intentions, such as “Snapple
Corporation seeks to increase its share of the noncarbonated soft drink market to 25
percent within the next two years.”
a. True
b. False
The term “lifetime value of a customer” refers to revenues and intangible benefits such
as referrals and customer feedback 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 service the customer.
a. True
b. False