chapter 12-15

30) Which of the following brands most likely requires heavy advertising in order to be set apart from similar products? A) undifferentiated brands B) specialty brands C) international brands D) mature brands E) high-share brands

A) undifferentiated brands

44) ________ tend to be straightforward outlines of benefits and positioning points that the advertiser wants to stress. A) Promotion mix plans B) Message strategy statements C) Creative concept strategies D) Advertainment statements E) Branded entertainment plans

B) Message strategy statements

37) The aim of ________ is to make an advertisement so useful or entertaining that people want to watch it. A) branded entertainment B) advertainment C) viral marketing D) buzz marketing E) word-of-mouth advertising

B) advertainment

4) Competitive parity and task methods are considered when making decisions about ________. A) sales objectives B) budget C) message structure D) media selection E) message effectiveness

B) budget

2) Advertising is used mostly by ________. A) governments B) business firms C) social agencies D) independent professionals E) not-for-profit organizations

B) business firms

82) Rather than measuring click-through rates, companies now want to track ________ as a more accurate measure of the engagement of the consumers in the message. A) ratings B) consumer expressions C) listenership D) consumer impressions E) readership

B) consumer expressions

65) Which of the following is illustrated by an amateur 30-second video, developed by a consumer, telling the story of the online crafts marketplace, Etsy.com? A) personal selling B) consumer-generated messages C) consumer ethnocentrism D) sales promotion E) consumerism

B) consumer-generated messages

63) What is the first element that a reader most likely notices in a print ad? A) copy B) illustration C) headline D) slogan E) tone

B) illustration

14) When the advertising objective is to build primary demand for a new product category, ________ advertising will most likely be used. A) persuasive B) informative C) comparative D) patronage E) institutional

B) informative

51) An ad for Athleta active wear shows a woman in a complex yoga pose and states: "If your body is your temple, build it one piece at a time." This ad uses the ________ execution style. A) slice of life B) lifestyle C) fantasy D) scientific evidence E) personality symbol

B) lifestyle

41) Which term refers to the general idea that will be communicated to consumers through an advertisement? A) advertising appeal B) message strategy C) consumer-generated message D) creative concept E) message execution

B) message strategy

55) Apple used an album by the band U2 to promote the Apple Watch announcement. Which of the following message execution styles is illustrated in this example? A) personality symbol B) musical C) fantasy D) lifestyle E) slice of life

B) musical

10) Advertising objectives should be based on the marketing mix, positioning, and ________. A) differentiation B) past decisions about the target market C) costs of different media choices D) ability to create special events E) novelty of the product advertised

B) past decisions about the target market

86) The term media multitaskers refers to ________. A) competing brands which use the same media vehicle B) people who absorb more than one medium at a time C) media planners who also head the creative department D) media planners who use more than one advertising medium E) ad agencies whose clients are competitors of each other

B) people who absorb more than one medium at a time

42) The first step in creating effective advertising messages is ________. A) selecting specific media vehicles B) planning a message strategy C) determining return on advertising investment D) choosing media timing E) executing the message

B) planning a message strategy

71) You receive a report that 68 percent of your target market has been exposed to your ad campaign during a given period of time. Which of the following aspects of media selection is represented by this information? A) frequency B) reach C) impact D) engagement E) qualitative value

B) reach

32) Which of the following would be the most likely result of slashing ad spending for a product? A) increased popularity B) reduced long-term market share C) improved brand image D) increased short-term sales E) increased long-term market share

B) reduced long-term market share

50) An ad for a new convection oven shows a busy professional woman using the convection oven to cook dinner for her family. Which of the following message execution styles is illustrated in this example? A) testimonial evidence B) slice of life C) fantasy D) scientific evidence E) mood or image

B) slice of life

60) Maybelline used Gigi Hadid, a model, to endorse a new range of cosmetics. This message execution style is referred to as ________. A) lifestyle B) testimonial evidence C) image D) technical expertise E) personality symbol

B) testimonial evidence

26) Advertising has numerous goals. Which of the following is NOT one of those goals? A) to help move consumers through the buying process B) to work with lobbyists and legislators in developing industry regulations C) to move people to immediate action D) to build or strengthen long-term customer relationships E) to engage customers and change the way they think or feel about the brand

B) to work with lobbyists and legislators in developing industry regulations

67) What is an advantage of consumer-generated content? A) It will be less expensive. B) It cannot be controlled by the company. C) It can provide new creative ideas. D) It can entice customers to become brand evangelists. E) It can use social media sites more effectively than the company can.

C) It can provide new creative ideas.

79) Which of the following statements about outdoor media is true? A) It has no creative limitations. B) It is characterized by higher costs per exposure. C) It has good positional selectivity. D) It has very limited flexibility. E) It has high audience selectivity.

C) It has good positional selectivity.

35) Which of the following statements is true regarding the vital importance of the media-planning function? A) With changing technologies, media costs are declining. B) Brand content is usually created in-house by the company. C) Which media to use is sometimes more critical than the creative elements of the messaging. D) Market targeting has declined in importance in the planning stages. E) Because so many consumers use the same mobile and social media applications, messaging can be less focused.

C) Which media to use is sometimes more critical than the creative elements of the messaging.

1) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. A) sales promotion B) direct marketing C) advertising D) personal selling E) public relations

C) advertising

33) When the product differs greatly from those of competitors, ________. A) advertising can make customers aware of the product B) firms should advertise similarly to competitors, to remind consumers of the product C) advertising can point out the differences to consumers D) firms should advertise little as the uniqueness will not require education of consumers E) advertising can reaffirm a consumer's decision to purchase

C) advertising can point out the differences to consumers

17) Persuasive advertising becomes ________ advertising when a company directly or indirectly compares its brand with one or more other brands. A) informative B) reminder C) attack D) covert E) institutional

C) attack

31) Brands in a market with many competitors and high advertising clutter must ________. A) have very high prices compared to competitors B) be advertised only through print and social media C) be advertised more heavily to be noticed in the marketplace D) never be advertised using informative advertising E) be advertised only during the mature stage of the product life cycle

C) be advertised more heavily to be noticed in the marketplace

92) To measure the ________ effects of an ad after it has aired, the advertiser can evaluate how the ad affected consumer recall, product awareness, attitude changes, and preference. A) sales B) profit C) communication D) continuity E) associativity

C) communication

19) When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ________. A) informative advertising B) reminder advertising C) comparative advertising D) covert advertising E) institutional advertising

C) comparative advertising

54) An IKEA ad shows consumers creating fanciful room designs with IKEA furniture, such as "a bedroom for a queen made by Bree and her sister, designed by IKEA." Which of the following message execution styles is illustrated in this example? A) mood or image B) musical C) fantasy D) lifestyle E) personality symbol

C) fantasy

62) An illustration, a headline, and a copy are the three ________ elements of an advertisement. A) tone B) mood C) format D) reach E) frequency

C) format

73) The number of times an average person in the target market is exposed to a message is known as the ________ of the message. A) quantitative value B) reach C) frequency D) exposure rate E) turnover rate

C) frequency

46) Which of the following are the three characteristics that an advertising appeal should have? A) engaging, informative, and stylish B) trendy, compelling, and appealing C) meaningful, believable, and distinctive D) unique, emotional, and entertaining E) humorous, memorable, and interesting

C) meaningful, believable, and distinctive

87) Modern Family and The Wall Street Journal are both examples of ________—specific media within each general media type. A) alternative media B) major media C) media vehicles D) media multitaskers E) micromedia

C) media vehicles

57) Progressive Insurance uses Flo to represent its product. Which of the following message execution styles was used by Progressive Insurance? A) mood or image B) fantasy C) personality symbol D) technical expertise E) musical

C) personality symbol

61) The McDonald's fast-food restaurant chain uses Ronald McDonald, a clown, as its primary character. Which message execution style is used by McDonald's? A) technical expertise B) lifestyle C) personality symbol D) image E) slice of life

C) personality symbol

9) An advertising objective is classified by its primary purpose, which is to inform, persuade, or ________. A) reciprocate B) compete C) remind D) explain E) suggest

C) remind

90) Audience quality, audience engagement, and editorial quality are most likely to be considered when a media planner ________. A) decides on media timing B) selects an execution style C) selects a media vehicle D) evaluates return on investment E) measures the communication effects of an advertisement

C) selects a media vehicle

49) Which message execution style depicts average people using a product in an everyday setting? A) lifestyle B) scientific evidence C) slice of life D) personality symbol E) testimonial evidence

C) slice of life

59) Which of the following message execution styles features a highly believable or likable source endorsing the product? A) musical B) mood or image C) testimonial evidence D) lifestyle E) slice of life

C) testimonial evidence

29) With the help of ________ systems, consumers can avoid watching ads. A) USB B) CCTV C) HDMI D) DVR E) XBMC

D) DVR

93) Which of the following characterizes standardized global advertising? A) higher advertising costs B) no global advertising coordination C) higher appeal to varying demographics D) a more consistent worldwide image E) lower reach

D) a more consistent worldwide image

89) When a media planner determines whether an advertisement for diapers should be placed in Parents magazine or Sports Illustrated magazine, the planner is evaluating the media vehicle's ________. A) profit margin B) flexibility C) rate of depreciation D) audience quality E) cost per exposure

D) audience quality

70) Which of the following is an advantage of using newspapers as an advertising medium? A) long life B) good reproduction quality C) large pass-along audience D) broad acceptability E) no ad competition within the same medium

D) broad acceptability

76) Which of the following is a media measure? A) consumer price index B) GDP per capita C) wholesale price index D) click-through rate E) human development index

D) click-through rate

21) Which of the following types of advertising will most likely result in an advertising war? A) covert advertising B) institutional advertising C) informative advertising D) comparative advertising E) reminder advertising

D) comparative advertising

43) Developing an effective message strategy begins with identifying ________ that can be used as advertising appeals. A) consumer trends B) competitors' weaknesses C) competitors' strengths D) customer benefits E) consumer emotions

D) customer benefits

3) Marketing management must make important decisions when developing an advertising program. Which of the following is NOT one of those decisions? A) evaluating advertising effectiveness B) developing advertising strategy C) setting advertising objectives D) designing products and distribution E) setting the advertising budget

D) designing products and distribution

11) Advertising is a good way to ________, inform, and persuade. A) educate B) create C) define D) engage E) harvest

D) engage

83) While traditional mass media still make up a majority of today's media mixes, companies have added digital, mobile, and social media that cost less, target more effectively, and ________. A) are quicker to create B) involve more departments in the company C) must be chosen carefully, since there are so many options D) engage consumers more fully E) are challenging to schedule

D) engage consumers more fully

66) Television, as a medium of advertisement, is characterized by ________. A) high audience selectivity B) low absolute costs C) poor mass-marketing coverage D) fleeting exposure E) high cost per exposure

D) fleeting exposure

38) In addition to advertainment, advertisers are creating content that ________. A) provides much more information than ads did in the past B) they expect to go viral C) helps the advertiser save money D) looks less like ads and more like short films or shows E) confuses viewers about whether they are ads

D) looks less like ads and more like short films or shows

8) The decisions about impact and engagement of an advertisement fall into the category of ________ decisions. A) sales objectives B) budget C) message D) media E) advertising evaluations

D) media

75) Which term refers to the qualitative value of message exposure through a given medium? A) reach B) turnover rate C) efficiency D) media impact E) frequency

D) media impact

85) A Spanish-language channel runs its ads only in Hispanic neighborhoods. This is an example of ________. A) broadcasting B) buzz marketing C) narrow programming D) media multitasking E) personal selling

D) media multitasking

20) Encouraging customers to switch brands is most likely the objective of ________ advertising. A) informative B) reminder C) covert D) persuasive E) institutional

D) persuasive

74) Which of the following is a disadvantage of using direct mail as an advertising medium? A) low audience selectivity B) no flexibility C) severe ad competition D) relatively high cost per exposure E) lack of personalization

D) relatively high cost per exposure

25) A product in the maturity stage will most likely require ________ advertising. A) informative B) comparative C) persuasive D) reminder E) covert

D) reminder

12) Which of the following is most likely an objective of informative advertising? A) build brand preference B) change customer perceptions of brand value C) encourage customers to switch brands D) suggest new uses for a product E) keep the brand in customer minds during off-seasons

D) suggest new uses for a product

52) Which of the following message execution styles focuses on the company's skill and knowledge in making the product? A) endorsement B) scientific evidence C) slice of life D) technical expertise E) testimonial evidence

D) technical expertise

80) You want to advertise your new product. You want good mass marketing coverage and low cost per exposure. You also want to combine sight, sound, and motion and make the advertisement appealing to the senses. You should choose ________ as your advertising media. A) newspaper B) radio C) magazines D) television E) direct mail

D) television

48) The advertiser must find the best approach, style, words, format, and ________ for executing the message. A) media B) cost C) visuals D) tone E) endorser

D) tone

16) ________ becomes more important as competition increases. With this type of advertising, a company's objective is to build selective demand. A) Institutional advertising B) Informative advertising C) Reminder advertising D) Not-for-profit advertising E) Persuasive advertising

E) Persuasive advertising

77) Which of the following statements is most likely true about radio as an advertising medium? A) Radio advertising is typically quite expensive. B) Radio ensures good attention from the target audience. C) Radio offers very low audience selectivity. D) Radio prohibits the use of segmentation strategies. E) Radio advertising is characterized by good local acceptance.

E) Radio advertising is characterized by good local acceptance.

69) ________ is a measure of the percentage of people in a target market who are exposed to an ad campaign during a given period of time. A) Frequency B) Qualitative value C) Impact D) Premium E) Reach

E) Reach

84) Finding ads on shopping carts, ATMs, transit buses, and even municipal garbage cans is known as ________. A) paid media B) earned media C) shared media D) media multitasking E) alternative media

E) alternative media

47) In its advertisements, Timex promotes its affordable and sturdy watches. Fossil emphasizes style and fashion in its advertisements, and Rolex stresses luxury and status. These are all examples of ________ appeals. A) rational B) reminder C) believable D) entertainment E) distinctive

E) distinctive

15) Which of the following is an objective of persuasive advertising? A) communicate customer value B) correct false impressions C) describe available services and support D) keep the brand in a customer's mind during off-seasons E) engage customers and create brand community

E) engage customers and create brand community

22) Describing available services and support is most likely a goal of ________ advertising. A) reminder B) competitive C) covert D) attack E) informative

E) informative

28) Which of the following most likely requires the smallest advertising budget? A) products in competitive markets B) undifferentiated brands C) new products D) low-share brands E) mature brands

E) mature brands

91) In the context of media timing, ________ means making decisions on scheduling ads either following the seasonal pattern, opposing the seasonal pattern, or being the same all year. A) routing B) continuity C) sequencing D) narrowcasting E) seasonal advertising

E) seasonal advertising

53) A pharmaceutical ad features a world-renowned heart surgeon describing the benefits of a medication. Which of the following message execution styles is illustrated in this example? A) mood or image B) fantasy C) personality symbol D) musical E) testimonial evidence

E) testimonial evidence

102) The most common form of advertainment is product placement.

false

103) A brief glimpse of the latest LG phone on the television series Modern Family is an example of an advertainment.

false

6) Advertising is a good way to engage, inform, and persuade, regardless of the objective of the message.

true

96) A specific communication task to be accomplished with a specific target audience during a specific period of time is called an advertising objective.

true

72) Which of the following statements about magazines as an advertising medium is true? A) Magazines have long ad purchase lead times. B) Magazines cannot offer high geographic selectivity. C) Magazines lack credibility. D) Magazines provide better local coverage than newspapers. E) Magazines have poor reproduction of images.

A) Magazines have long ad purchase lead times.

18) Comparative advertising is also known as ________ advertising. A) attack B) institutional C) covert D) reminder E) informative

A) attack

39) Product placement in television programs and movies is an example of ________. A) branded entertainment B) advertainment C) direct marketing D) buzz marketing E) sales promotion

A) branded entertainment

64) The main block of text in a print ad is referred to as the ________. A) copy B) testimonial evidence C) headline D) slogan E) message strategy statement

A) copy

88) When selecting a media vehicle, the media planner looks both at the total cost of using a medium and at the ________. A) cost per thousand persons reached B) cost of premium offers C) cost of the magazine it is using D) profit margin E) continuity cost

A) cost per thousand persons reached

45) After creating a message strategy statement, the advertiser must develop a compelling ________ that will bring the message strategy to life in a distinctive and memorable way. A) creative concept B) customer strategy C) customer benefit D) execution style E) media vehicle

A) creative concept

68) Which of the following is a major step in selecting advertising media? A) determining reach, frequency, and impact B) selecting message execution style C) developing a compelling creative concept D) deciding on format elements E) planning a message strategy

A) determining reach, frequency, and impact

13) When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser? A) informative advertising B) persuasive advertising C) reminder advertising D) developmental advertising E) comparative advertising

A) informative advertising

24) Which of the following is one of the primary goals of reminder advertising? A) maintain customer relationships B) build brand preference C) correct false impressions D) inform the market of a price change E) restore company image

A) maintain customer relationships

23) Keeping the brand in a customer's mind during off-seasons is most likely a goal of ________ advertising. A) reminder B) attack C) informative D) covert E) competitive

A) reminder

58) Which message execution style involves presenting survey data indicating that a brand is better than other brands? A) scientific evidence B) testimonial evidence C) endorsement D) technical expertise E) slice of life

A) scientific evidence

34) Which of the following is a major element of developing an advertising strategy? A) selecting advertising media B) using sophisticated statistical models C) setting advertising objectives D) evaluating advertising campaigns E) setting the advertising budget

A) selecting advertising media

27) After determining its advertising objectives, a company's next step in developing an advertising program is to ________. A) set an advertising budget B) determine the media vehicle C) use cash rebate offers D) evaluate the advertising campaign E) develop a message strategy

A) set an advertising budget

78) Which of the following is a digital medium that is used by advertisers to reach consumers directly? A) smartphone B) direct mail C) newspapers D) billboards E) television

A) smartphone

81) Snappy Cameras is launching a new advertising campaign to demonstrate the high quality of its digital cameras. Which media option would give the audience the most control over exposure to the ads and interactive capabilities? A) the Internet B) newspaper C) TV D) radio E) billboard

A) the Internet

127) Power centers tend to be smaller than lifestyle centers.

false

40) The shift toward digital communication allows companies to keep control of message exposure.

false

43) Wholesaling includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

false

45) Department stores carry narrow product lines with deep assortments within those lines.

false

48) In recent years, convenience stores have redesigned their stores to closely focus on serving their primary target market made up of young, blue-collar men.

false

50) Supermarkets sell a limited selection of goods at deep discounts to consumers who pay membership fees.

false

132) While the process of showrooming can hurt in-store sales of merchandise, retailers can make it a positive by enhancing the in-store shopping experience.

true

133) Green retailing yields both top- and bottom-line benefits.

true

14) Direct and digital marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.

true

148) Companies use PR to build good relations with consumers, investors, the media, and their communities.

true

149) The percentage-of-sales method wrongly views sales as the cause of promotion rather than as the result.

true

15) Direct and digital marketing includes catalogs, e-mail, direct mail, social media, and mobile marketing.

true

150) The percentage-of-sales budget is based on the availability of funds rather than on opportunities.

true

151) Changing technologies, especially with digital content, is significantly increasing the role of public relations in a firm's integrated marketing communications program.

true

152) Large-scale advertising conveys a positive message about the seller's size, popularity, and success.

true

153) If the pull strategy is effective, then consumers will demand the product from channel members, who will in turn demand it from producers.

true

159) Marketing logistics involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

true

161) Environmental sustainability is an important factor in supplier selection and performance evaluation, as designing sustainable supply chains has become the right thing to do.

true

163) Corporate identity materials help create a corporate identity that the public immediately recognizes

true

163) In an automated warehouse, orders are fed directly from the retailer's information system to the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.

true

164) A company's Web site can be an important public relations vehicle.

true

164) Intermodal transportation refers to the combination of two or more modes of transportation.

true

165) Electronic data interchange is the digital exchange of data between organizations, which primarily is transmitted via the Internet.

true

27) Downstream marketing channel partners, such as wholesalers and retailers, form a vital link between the firm and its customers.

true

28) A company's channel decisions directly affect the prices of its products.

true

29) Producers use intermediaries because they create greater efficiency in making goods available to target markets.

true

31) Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer is a channel level.

true

34) Direct marketing includes catalogs, direct-response TV, kiosks, the Internet, and mobile marketing.

true

35) As mass markets have fragmented, marketers have shifted away from mass marketing.

true

36) Communications technologies such as cell phones and the Internet give companies new media for interacting with targeted consumers, but these technologies also give consumers more control over the advertising messages they receive.

true

38) The integrated marketing concept ties together all of the company's messages and images.

true

39) Integrated marketing communications calls for recognizing all communications channels where the customer may encounter the company and its brands.

true

41) A marketing communications director has overall responsibility for the company's communications efforts.

true

44) Shopper marketing involves focusing the entire marketing process—from product and brand development to logistics, promotion, and merchandisings—toward turning shoppers into buyers at the point of sale.

true

46) Self-service retailers serve customers who are willing to perform their own locate-compare-select process to save time or money.

true

47) Full-service stores usually carry more specialty goods for which customers need or want assistance or advice.

true

49) Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services.

true

52) Category killers are giant specialty stores that carry a very deep assortment of a particular line.

true

55) Independent off-price retailers either are independently owned and run or are divisions of larger retail corporations.

true

56) Corporate chains are two or more outlets that are commonly owned and controlled.

true

57) A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

true

58) In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.

true

71) A marketing channel works most effectively when each channel member performs the tasks it does best.

true

74) A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the expense of the system as a whole.

true

77) Disintermediation occurs when radically new types of channel intermediaries displace traditional ones

true

117) Advertising media costs and availability differ vastly from country to country.

true

106) The purpose of advertising is to get consumers to think about or react to the product or company in a certain way.

true

107) A strip mall contains between 5 and 15 retail stores.

true

161) Like retailers, wholesalers must decide on product and service assortments, prices, promotion, and place.

true

92) Most shopping centers are ________. A) strip malls B) regional shopping malls C) community shopping centers D) lifestyle centers E) power centers

) strip malls

32) A ________ is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising. A) voluntary chain B) retailer cooperative C) franchise D) wholesale club E) warehouse club

A) voluntary chain

30) ________ are two or more outlets that are commonly owned and controlled. A) Corporate chains B) Convenience stores C) Off-price retailers D) Independent off-price retailers E) Power centers

A) Corporate chains

127) Which of the following statements is most likely true regarding the objective-and-task method of budget setting? A) It forces management to spell out its assumptions about the relationship between the money spent and promotion results. B) It is the simplest and least time consuming method to use. C) It is the least logical budget-setting method. D) It involves setting the promotion budget to match competitors' outlays. E) It wrongly views sales as the cause of promotion rather than as the result.

A) It forces management to spell out its assumptions about the relationship between the money spent and promotion results.

36) To break through the clutter, many marketers have subscribed to a new merging of advertising and entertainment, dubbed ________. A) Madison & Vine B) Wall St. & Fifth Ave C) buzz marketing D) podcasting E) webisodes

A) Madison & Vine

29) Which of the following is an off-price retailer that operates in a huge, warehouse-like facility and offers few frills? A) warehouse club B) service retailer C) convenience store D) hypermarket E) superstore

A) warehouse club

51) Which of the following is true of vertical marketing systems? A) Producers, wholesalers, and retailers act as a unified system. B) Channel members have no control over each other. C) Channel conflict is governed by informal mechanisms. D) The system is dominated by the consumer. E) Channel members work independently with no cooperation from other members.

A) Producers, wholesalers, and retailers act as a unified system.

141) ________ or smart tag technology helps companies locate a product's exact position within its supply chain. A) RFID B) PRM C) VMS D) BCODE E) 3PL

A) RFID

11) Which of the following is most likely true of marketing channel decisions? A) They often involve long-term commitments to other firms. B) They have minimal influence on the prices of products offered to customers. C) They increase the amount of time a company spends connecting with customers. D) They increase the amount of effort a company puts in to distribute goods. E) They are easily altered, replaced, or discarded.

A) They often involve long-term commitments to other firms.

137) ________ includes all activities involved in selling goods and services to those buying for resale or business use. A) Wholesaling B) Retailing C) Franchising D) Discounting E) Showrooming

A) Wholesaling

143) Which of the following would be classified as bait-and-switch advertising? A) advertising a cheaper brand but making only a more expensive one available to customers B) advertising the advantages of a product by comparing it to its competitors C) providing free samples of a product D) providing discount coupons with a product E) favoring certain customers over others through trade promotions

A) advertising a cheaper brand but making only a more expensive one available to customers

20) Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store? A) category killer B) convenience store C) factory outlet D) warehouse club E) off-price retailer

A) category killer

82) A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A) community shopping center B) neighborhood shopping center C) strip mall D) regional shopping center E) power center

A) community shopping center

138) Logistics has grown in importance for all of the following reasons EXCEPT that ________. A) companies that become channel members want to continue to grow and expand. B) companies can gain a powerful competitive advantage by using improved logistics to give customers better service or lower prices. C) improved logistics can yield tremendous cost savings to both a company and its customers. D) more than almost any other marketing function, logistics affects the environment and a firm's environmental sustainability efforts. E) the explosion in product variety has created a need for improved logistics management.

A) companies that become channel members want to continue to grow and expand.

18) A ________ is a small store, located near a residential area that is open long hours seven days a week and carries a limited line of high-turnover goods. A) convenience store B) chain store C) department store D) supermarket E) specialty store

A) convenience store

118) When different types of retailers sell the same products at the same prices to the same customers, thanks in part to the price transparency of the Internet, the retail forms appear to be ________. A) converging B) differentiating C) repositioning D) adapting E) declining

A) converging

52) Which of the following is a major type of vertical marketing system? A) corporate B) conventional C) multilevel D) intrinsic E) extrinsic

A) corporate

81) Upon determining who will want the product, retailers must determine in more detail how to ________ in those markets. A) differentiate and position themselves B) market themselves C) entice customers to them D) offer the correct products E) properly price the product offerings

A) differentiate and position themselves

28) Consumers today receive commercial messages from a broad range of sources. However, consumers ________ the way marketers do. A) don't distinguish between message sources B) never pay attention to sales promotions C) don't care about buzz marketing D) are not able to block out messages E) block out all media messages

A) don't distinguish between message sources

122) Marketing channel management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time.

true

158) Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical Inc. Then Chemical Inc. placed the order with the manufacturer, and the manufacturer then transported the tablets directly to the Tony Pool store. In this case, Chemical Inc. is an example of a ________. A) drop shipper B) truck jobber C) rack jobber D) full-service wholesaler E) cash-and-carry wholesaler

A) drop shipper

92) Which of the following is an environmental factor that affects channel objectives and design? A) economic conditions B) factory staffing C) organizational objectives D) interpersonal influences E) individual motives

A) economic conditions

81) Which of the following appeals is based on the idea that consumers often feel before they think? A) emotional appeal B) rational appeal C) structural appeal D) standardized appeal E) integrated appeal

A) emotional appeal

98) Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of ________ distribution. A) exclusive B) selective C) intensive D) indirect E) corporate

A) exclusive

102) When the seller allows only certain outlets to carry its products, this strategy is called ________. A) exclusive distribution B) subjective dealing C) selective distribution D) exclusive pricing E) disintermediation

A) exclusive distribution

96) With which of the following strategies would a company give only a limited number of dealers the right to distribute its products in their territories? A) exclusive distribution B) extensive distribution C) moderate distribution D) primary distribution E) intensive distribution

A) exclusive distribution

142) Which of the following wholesaler's channel functions is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers? A) financing B) transportation C) buying and assortment building D) warehousing E) risk bearing

A) financing

148) In intermodal transportation, which of the following describes the use of both water and trucks for transportation? A) fishyback B) drawbar C) trainship D) piggyback E) airtruck

A) fishyback

20) Shifting away from mass marketing, marketers are developing ________ which are designed to build relationships with customers in more narrowly defined micromarkets. A) focused marketing programs B) horizontal diversification programs C) backward integration strategies D) new pull strategies E) new push strategies

A) focused marketing programs

55) The ________ organization is the most common type of contractual relationship. A) franchise B) horizontal C) conventional D) multi-national E) entrepreneurial

A) franchise

7) At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________. A) full-service retailer B) limited-service retailer C) self-service retailer D) specialty store E) superstore

A) full-service retailer

105) Why do firms have difficulty accessing potential market areas in developing countries, such as China and India? A) inadequate distribution systems B) anti-globalization efforts C) highly centralized rural markets D) limited manpower E) high operating costs

A) inadequate distribution systems

149) Which type of wholesaler sells to manufacturers rather than to retailers? A) industrial distributor B) full-service wholesaler C) cash-and-carry wholesaler D) wholesale merchant E) limited-service wholesaler

A) industrial distributor

29) Today, most companies are adopting the concept of ________, which carefully combines and coordinates the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands. A) integrated marketing communications B) pull strategy C) vertical diversification D) nonpersonal communication channels E) buzz marketing

A) integrated marketing communications

97) For which product would a company use an exclusive distribution strategy? A) luxury cars B) newspapers C) chewing gum D) dairy products E) soft drinks

A) luxury cars

56) Ford and its network of independent franchised dealers is an example of a ________. A) manufacturer-sponsored retailer franchise system B) manufacturer-sponsored wholesaler franchise system C) service-firm-sponsored retailer franchise system D) service-firm-sponsored equity strategic alliance E) manufacturer-and-service-sponsored joint venture

A) manufacturer-sponsored retailer franchise system

59) A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ________. A) noise B) encoding C) feedback D) response E) decoding

A) noise

26) As discount stores traded up, ________ have filled the ultra low-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail. A) off-price retailers B) specialty stores C) convenience stores D) chain stores E) supercenters

A) off-price retailers

22) Which of the following is a type of flow that connects all institutions in a marketing channel? A) payment flow B) ownership flow C) physical flow D) promotion flow E) information flow

A) payment flow

121) Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result. A) percentage-of-sales B) integrated C) competitive-parity D) objective-and-task E) regression

A) percentage-of-sales

95) Springfield, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with products such as house wines and fresh foods. This information indicates that Springfield has most likely changed its ________. A) positioning B) price strategy C) service level D) corporate identity E) organizational structure

A) positioning

85) One of the message structure issues that a marketer must handle is whether to ________. A) present the strongest arguments first or last B) make a moral appeal or not C) use the pull strategy or push strategy D) diversify vertically or horizontally E) use mass marketing or niche marketing

A) present the strongest arguments first or last

138) Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and statewide media with information about community events and charity fundraisers sponsored by her company. This is an example of the ________ function of public relations. A) press relations B) product publicity C) investor relations D) lobbying E) development

A) press relations

88) Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________ activities used by retailers to promote themselves. A) public relations B) sales promotions C) personal selling D) affinity marketing E) social marketing

A) public relations

128) Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product. A) pull B) blitz C) push D) buzz E) pulse

A) pull

141) Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while business-to-business companies are more likely to emphasize a ________ promotion strategy. A) pull; push B) push; pull C) pulse; pull D) blitz; pull E) push; blitz

A) pull; push

57) In the communication process, the reaction of the receiver after being exposed to a message is called the ________. A) response B) disturbance C) noise D) code E) distortion

A) response

134) Suppose Amazon.com has offered you free shipping on your next purchase of more than $35. This offer is an example of ________. A) sales promotion B) personal selling C) a public relations strategy D) horizontal diversification E) a pull strategy

A) sales promotion

6) Which of the following promotion categories is most likely to include the use of displays, discounts, coupons, and demonstrations? A) sales promotion B) direct and digital marketing C) horizontal diversification D) public relations E) advertising

A) sales promotion

6) Retailers are classified on characteristics including the amount of service they offer, the breadth and depth of their product lines, how they are organized, and ________. A) the relative prices they charge B) the number of locations they have C) the strength of their Internet presence D) their sustainability and environmental policies E) the stability of their financial situation

A) the relative prices they charge

155) Which of the following is NOT a major public relations tool? A) trade shows and conferences B) stationery, logos, and uniforms C) public service activities D) videos E) annual reports and brochures

A) trade shows and conferences

156) You own a small independent retail store in your neighborhood. You want to offer fresh seafood, milk, and bread in your store. In this case, which of the following types of wholesalers will serve you the best? A) truck jobber B) independent distributor C) drop shipper D) mail-order wholesaler E) manufacturers' agent

A) truck jobber

117) Producers motivate channel members using all of the following EXCEPT ________. A) using strict rules to force compliance with contract terms B) partner relationship management C) working to sell through the intermediaries D) persuading the intermediaries that they are first-line customers E) convincing channel members that each will enjoy greater success working together with a common goal

A) using strict rules to force compliance with contract terms

7) A ________ is made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system. A) value delivery network B) horizontal channel C) consumer base D) product delivery network E) product line

A) value delivery network

78) A message showing a product's quality, economy, value, or performance is an example of a(n) ________ appeal. A) structural B) rational C) emotional D) moral E) standard

B) rational

39) ________ are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals. A) Customer relationship management systems B) Distribution channels C) Partner relationship systems D) Consumer bases E) Buying centers

B) Distribution channels

132) ________ logistics starts with the marketplace and works backward to the factory or even to sources of supply. A) Outbound B) Customer-centered C) Upstream D) Reverse E) Inbound

B) Customer-centered

24) ________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume. A) Merchant wholesalers B) Discount stores C) Full-service retailers D) Limited-service retailers E) Factory outlets

B) Discount stores

50) ________ refers to the process of putting thought into symbolic form. A) Sending B) Encoding C) Decoding D) Receiving E) Feedback

B) Encoding

146) ________ and ________ do not take title to goods, and they perform only a few channel functions. A) Full-service wholesalers; limited-service wholesalers B) Brokers; agents C) Industrial distributors; cash-and-carry wholesalers D) Cash-and-carry wholesalers; industrial distributors E) Rack jobbers; off-price retailers

B) Brokers; agents

49) Which of the following is true of conventional distribution channels? A) Channel members have complete control over each other. B) Channel members seek to maximize their own profits. C) Channel conflict is governed by formal mechanisms. D) Channel members are assigned roles according to a clearly defined framework. E) Channel members work exclusively for the good of the organization.

B) Channel members seek to maximize their own profits.

130) Megaretailers have shifted the balance of power between retailers and producers, giving retailers more power.

true

28) ________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items. A) Category killers B) Factory outlets C) Specialty stores D) Superstores E) Power centers

B) Factory outlets

152) ________ management is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system. A) Logistics inventory B) Integrated logistics C) Logistics information D) Independent logistics E) Group logistics

B) Integrated logistics

93) ________ distribution is a strategy in which producers of convenience products and common raw materials stock their products in as many outlets as possible. A) Direct B) Intensive C) Inclusive D) Exclusive E) Selective

B) Intensive

13) ________ play an important role in efficiently making products available to target markets in the needed varieties and quantities. A) Virtual banks B) Intermediaries C) Price consultants D) Uniform-delivery networks E) Upstream partners

B) Intermediaries

8) ________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities. A) Virtual banks B) Intermediaries C) Price consultants D) Uniform-delivery networks E) Upstream partners

B) Intermediaries

143) Which of the following statements is most likely true of public relations? A) It requires participating companies to pay for media space or time. B) It can have the same impact on public awareness as advertising at much lower costs. C) It is always handled by a third-party agency hired by the firm. D) It forms a huge portion of the overall marketing budget of most large firms. E) It plays an insignificant role in brand building with the increasing popularity of advertising.

B) It can have the same impact on public awareness as advertising at much lower costs.

120) Which of the following statements is true regarding the affordable method for setting a promotion budget? A) It is mostly used by large businesses. B) It completely ignores the effects of promotion on sales. C) It tends to place promotion first among spending priorities. D) It leads to a certain annual promotion budget. E) It almost always results in overspending.

B) It completely ignores the effects of promotion on sales.

130) Which of the following is a strength of advertising? A) It is the most inexpensive promotion tool. B) It reaches masses of geographically dispersed buyers at low cost per exposure C) It is impersonal and lacks the direct persuasiveness of company salespeople. D) It cannot trigger quick sales. E) It cannot be used to build up a long-term image for a product.

B) It reaches masses of geographically dispersed buyers at low cost per exposure

61) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the new makeup. In terms of the communication model, the medium of this ad is ________. A) Gigi Hadid B) Ladies' Home Journal C) readers who redeem the $2-off coupon D) Maybelline E) the target market to which Gigi Hadid appeals

B) Ladies' Home Journal

115) ________ management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time. A) Inventory B) Marketing channel C) Brand image D) Customer experience E) Brand content

B) Marketing channel

93) ________ are huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store. A) Shopping malls B) Power centers C) Superstores D) Chain stores E) Regional shopping centers

B) Power centers

135) ________ is very believable because news stories, features, sponsorships, and events seem more real and believable to readers than ads do. A) Differentiated marketing B) Public relations C) Direct marketing D) Sales promotion E) Personal selling

B) Public relations

153) ________ are wholesalers who serve grocery and drug retailers, mostly in nonfood items. They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory records. A) Purchasing agents B) Rack jobbers C) Drop shippers D) Cash-and-carry wholesalers E) Manufacturers' agents

B) Rack jobbers

1) ________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Franchising B) Retailing C) Brokering D) Wholesaling E) Disintermediation

B) Retailing

99) ________ distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products. A) Exclusive B) Selective C) Intensive D) Indirect E) Corporate

B) Selective

8) ________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money. A) Limited-service B) Self-service C) Full-service D) Specialty-service E) Wholesaling

B) Self-service

4) ________ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions. A) Differentiation B) Shopper marketing C) Social media marketing D) Retailer marketing E) Segmentation

B) Shopper marketing

41) Which of the following is true of channel members? A) They act independent of each other. B) They play specialized roles in the channel. C) They are not accountable to other channel members. D) They play generalized and interchangeable roles in the distribution process. E) Their competence and cooperation don't affect the company's image or profits.

B) They play specialized roles in the channel

101) Which of the following is most likely true about shoppers who prefer to shop at "lifestyle centers"? A) They use coupons. B) They prefer upscale stores. C) They prefer indoor shopping locations. D) They rarely dine out in expensive restaurants. E) They are motivated by deals on last year's merchandise.

B) They prefer upscale stores.

9) Which of the following questions is NOT of major concern regarding marketing channels? A) What role do physical distribution and supply chain management plan in attracting and satisfying customers? B) What impact do marketing channels have on the profitability of the firm and its partners? C) How do channel firms interact and organize to do the work of the channel? D) What problems do companies face in designing and managing their channels? E) What is the nature of marketing channels, and why are they important?

B) What impact do marketing channels have on the profitability of the firm and its partners?

58) In a(n) ________, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members. A) horizontal marketing system B) administered VMS C) corporate VMS D) contractual VMS E) conventional VMS

B) administered VMS

3) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________ and includes broadcast, mobile, print, and online forms. A) sales promotion B) advertising C) direct and digital marketing D) personal selling E) public relations

B) advertising

150) Heart of Midnight sells blue orchids to major florists around the world. Their key requirement is speed. Which of the following modes of transport will help them? A) rail transport B) air carriers C) trucks D) piggybacks E) water transport

B) air carriers

88) Which of the following should be a manufacturer's first step when designing an effective marketing channel? A) set channel objectives B) analyze consumer needs C) identify channel alternatives D) evaluate channel alternatives E) establish strategic alliances

B) analyze consumer needs

158) Which of the following would most likely be included in the written materials prepared by PR professionals to reach and influence target markets? A) employee code of conduct B) annual reports C) memorandum of association D) advertisement jingles E) white papers

B) annual reports

93) Nonpersonal communication channels include major media, ________, and events. A) sales calls B) atmospheres C) buzz marketing D) word-of-mouth influence E) phone calls

B) atmospheres

74) Boson Corp. is introducing consumers to its new car with the help of an advertisement campaign. This introductory campaign most likely aims to affect the ________ stage of buyer-readiness. A) liking B) awareness C) preference D) insistence E) conviction

B) awareness

147) A(n) ________ brings buyers and sellers together and assists in negotiations. A) agent B) broker C) retailer D) wholesaler E) industrial distributor

B) broker

72) The six stages consumers normally pass through on their way to making a purchase are known as the ________ stages. A) personal-readiness B) buyer-readiness C) objective-readiness D) market-readiness E) supplier-readiness

B) buyer-readiness

15) A ________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. A) product platform B) channel level C) resource bank D) contact center E) customer franchise

B) channel level

95) To ________, a marketer would most likely ask target audience members whether they remember the message, how many times they saw it, and what points they remember. A) select a message source B) collect feedback C) select a message channel D) plan a media purchase E) design a marketing appeal

B) collect feedback

38) Stop-N-Go , 7-Eleven, and Circle K are examples of ________. A) department stores B) convenience stores C) category killers D) specialty stores E) supermarkets

B) convenience stores

48) A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole. A) multitiered supply chain B) conventional distribution channel C) intrinsic market matrix D) resource bank E) product platform

B) conventional distribution channel

125) Today's retailers increasingly adopt environmentally sustainable practices. Which of the following is NOT one of these practices? A) working with channel partners to reduce their environmental impact B) cutting back on recycling programs C) greening up their stores and operations D) launching programs to help customers be more responsible E) promoting more environmentally responsible products

B) cutting back on recycling programs

74) In recent years, service differentiation among retailers has ________. A) increased at a steady rate B) decreased C) stayed the same D) increased exponentially E) tripled

B) decreased

67) Which of the following is a disadvantage of adding new channels in a multichannel distribution system? A) decreasing complexity of markets B) decreasing control over the system C) reducing opportunities for franchising D) lowering sales and market coverage E) minimizing publicity needs

B) decreasing control over the system

15) Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other? A) warehouse clubs B) department store C) factory outlet D) merchant wholesaler E) category specialist

B) department store

97) Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to ________ other stores. A) align itself with B) differentiate itself from C) cluster with D) affect the store atmosphere of E) converge with

B) differentiate itself from

16) In a(n) ________ channel, the same member both produces and distributes a product or service to consumers. A) tiered B) direct C) platform D) vertical E) exclusive

B) direct

9) Which major promotion category uses catalogs, direct mail, e-mail, mobile marketing and social media? A) sales promotion B) direct and digital marketing C) horizontal diversification D) public relations E) advertising

B) direct and digital marketing

69) The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________. A) indirect marketing B) disintermediation C) franchising D) exclusive distribution E) intensive distribution

B) disintermediation

3) Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers? A) factory-supply networks B) downstream partners C) resource banks D) upstream partners E) supply channels

B) downstream partners

118) When a seller requires its dealers to abstain from handling competitors' products, it is called ________. A) subjective distribution B) exclusive dealing C) selective distribution D) exclusive pricing E) disintermediation

B) exclusive dealing

34) Which of the following kind of organization best represents a contractual association based on some unique product or service, a method of doing business, or a trade name or goodwill? A) corporate chain B) franchise C) voluntary chain D) retailer cooperative E) warehouse club

B) franchise

12) Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop? A) self-service retailer B) full-service retailer C) off-price retailer D) limited-service retailer E) convenience retailer

B) full-service retailer

23) The greater the number of channel levels in a marketing channel, the ________. A) less distance between producer and end-consumer B) greater the channel complexity C) less time it takes for products to reach end-consumers D) greater the control producers have over the distribution of their products E) greater the control producers have over the demand of their products

B) greater the channel complexity

129) Smart Shoppers, an online store that delivers its products to homes in and around California, recently switched its entire fleet to biodiesel trucks that run on used cooking oil rather than gas. Smart Shoppers has most likely developed a(n) ________. A) vertical marketing channel B) green supply chain C) multitiered marketing channel D) intermodal transportation system E) hybrid distribution system

B) green supply chain

42) Conflict that occurs among firms at the same level of the marketing channel is known as ________ conflict. A) multitiered B) horizontal C) vertical D) prolonged E) financial

B) horizontal

60) In a(n) ________, two or more companies at one level join together to follow a new marketing opportunity. A) administered vertical marketing system B) horizontal marketing system C) corporate vertical marketing system D) hybrid distribution system E) conventional marketing system

B) horizontal marketing system

70) Based on the target audience, the communicator makes decisions regarding what will be said, who will say it, when it will be said, where it will be said, and ________. A) whether it will be said B) how it will be said C) what noise to anticipate D) how much it will cost to prepare the message E) how frequently it will be said

B) how it will be said

68) Which of the following is the first step in developing an effective integrated communications and promotion program? A) designing a message B) identifying the target audience C) determining the communication objectives D) collecting feedback E) choosing the media through which to send a message

B) identifying the target audience

122) Retail online sites, mobile apps, and social media influence ________. A) overall retail sales B) in-store buying C) the number of likes and subscribers companies earn D) customers and their followers E) the number of products a company manufactures

B) in-store buying

90) Which of the following is most likely gained by stores that cluster together? A) decreased competition B) increased customer pulling power C) compliance with franchise agreements D) creation of retailer cooperatives E) standardization of the service mix

B) increased customer pulling power

25) The key is to ________ traditional mass media with online, mobile and social media to best engage customers, communicate the brand message, and enhance the customer's brand experiences. A) prioritize B) integrate C) utilize D) design E) spend on

B) integrate

154) Today's large, progressive wholesalers have successfully reacted to rising costs by ________. A) relocating to low-rent, low-tax areas B) investing in information technology systems C) investing less money in expensive machinery D) reducing their markup rates E) reducing promotional activities

B) investing in information technology systems

94) A small, open-air mall with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater, is an example of a ________. A) regional shopping center B) lifestyle center C) community shopping center D) franchise E) power center

B) lifestyle center

11) At JCPenney, a mid-level department store, customers shop for moderately priced products and they are assisted in some phases of the shopping process. JCPenney is a ________. A) full-service retailer B) limited-service retailer C) self-service retailer D) specialty store E) superstore

B) limited-service retailer

57) Fire Up makes fireproof clothing material and it licenses select stores around the world to use its material to make finished products with the Fire Up logo. Which of the following types of franchising is evident here? A) manufacturer-sponsored retailer franchise system B) manufacturer-sponsored wholesaler franchise system C) service-firm-sponsored retailer franchise system D) service-firm-sponsored equity strategic alliance E) manufacturer-and-service-sponsored joint venture

B) manufacturer-sponsored wholesaler franchise system

33) To carefully integrate and coordinate the company's many communications channels and produce greater sales impact, some companies appoint a(n) ________. A) idea champion B) marketing communications director C) sales representative D) business analyst E) media planner

B) marketing communications director

14) From the economic system's point of view, the role of ________ is to transform the assortments of products made by producers into the assortments wanted by consumers. A) upstream partners B) marketing intermediaries C) third-party logistics D) price consultants E) factory supervisors

B) marketing intermediaries

55) Which of the following terms best represents the communication channel that a company uses to move its advertising messages from sender to receiver? A) decoder B) media C) encoder D) communicator E) feedback loop

B) media

14) Specialty stores carry ________ with ________ within them. A) only convenience products; shallow assortments B) narrow product lines; deep assortments C) narrow product lines; shallow assortments D) wide product lines; shallow assortments E) wide product lines; deep assortments

B) narrow product lines; deep assortments

126) Which budgeting method entails defining specific promotion goals, determining the necessary tasks, and estimating the costs to determine a promotion budget? A) percentage-of-sales method B) objective-and-task method C) affordable method D) exponential task method E) competitive-parity method

B) objective-and-task method

40) Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________. A) specialty store B) off-price retailer C) factory outlet D) wholesale club E) category killer

B) off-price retailer

63) In the communication process, the more the sender's field of experience ________ that of the receiver, the more ________ the message is likely to be. A) varies from; distinguishable B) overlaps with; effective C) connects with; ineffective D) coincides with; creative E) departs from; direct

B) overlaps with; effective

131) In most cases, what is the most expensive promotion tool? A) advertising B) personal selling C) mass media D) public relations E) publicity

B) personal selling

8) Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products to wholesalers and individual customers. This is an example of ________. A) sales promotion B) personal selling C) public relations D) direct and digital marketing E) advertising

B) personal selling

116) Target recently opened temporary shops to celebrate limited-run collections by Jason Wu in Toronto and Missoni in New York. These temporary shops are examples of ________. A) lifestyle centers B) pop-up stores C) warehouse clubs D) strip malls E) category killers

B) pop-up stores

24) Which of the following is a conventional consumer marketing channel? A) producer to business distributor to end consumer B) producer to wholesaler to retailer to end consumer C) producer to end consumer to business customer D) producer to retailer E) producer to business distributor to business customer

B) producer to wholesaler to retailer to end consumer

137) Which of the following is NOT a major logistics function? A) inventory management B) product designing C) warehousing D) transportation E) packaging

B) product designing

157) You own a neighborhood grocery store and would like to have non-food items delivered, priced, displayed and inventoried by a wholesaler. You do not want to purchase title to the goods. Which type of wholesaler best fits your needs? A) cash-and-carry wholesaler B) rack jobber C) drop shipper D) mail-order wholesaler E) agents and brokers

B) rack jobber

31) As a result of the great success of corporate chains, many independent stores choose to band together in either a voluntary chain or a ________. A) factory outlet B) retailer cooperative C) wholesale club D) warehouse club E) convenience cooperative

B) retailer cooperative

135) Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________. A) cross merchandising B) reverse logistics C) disintermediation D) diverse logistics E) inbound logistics

B) reverse logistics

4) The use of short-term incentives to encourage the purchase or sale of a product or service is called ________. A) direct and digital marketing B) sales promotion C) personal selling D) public relations E) publicity

B) sales promotion

86) In-store demonstrations, displays, sales, and loyalty programs are examples of ________. A) direct marketing B) sales promotion C) public relations D) personal selling E) affinity marketing

B) sales promotion

139) Which of the following wholesaler's channel functions is demonstrated when a wholesaler's sales force helps a manufacturer to reach many small customers at a low cost? A) bulk-breaking B) selling and promoting C) buying and assortment building D) risk bearing E) rack jobbing

B) selling and promoting

78) A large retailer of home improvement and construction products offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how the retailer has differentiated itself through its ________. A) product assortment B) services mix C) segmentation D) atmosphere E) pricing

B) services mix

157) News conferences, press tours, and grand openings are examples of ________, a type of tool commonly used by public relations professionals. A) public service activities B) special events C) social networking D) development E) investor relations

B) special events

13) Today, ________ are flourishing due to the increased use of market segmentation and market targeting. A) chain stores B) specialty stores C) superstores D) discount stores E) off-price stores

B) specialty stores

4) The term supply chain is considered limited because it ________. A) ignores the make-and-sell aspect of the market B) suggests that planning begins with raw materials and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) takes a sense-and-respond view of the market E) suggests that planning starts with identifying the needs of target customers

B) suggests that planning begins with raw materials and factory capacity

39) Which of the following terms best describes a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products? A) convenience store B) supermarket C) specialty store D) warehouse club E) factory outlet

B) supermarket

123) Sam, the owner of a small company, learned that a competitor was planning to spend $150,000 on promotion in the next financial year. As soon as he learned this, Sam called his finance manager and said, "I want to spend $150,000 on promotion next year." In this case, which method of promotional budgeting does Sam use? A) the objective-and-task method B) the competitive-parity method C) the percentage-of-sales method D) the affordable method E) the pull-push method

B) the competitive-parity method

86) A(n) ________ argument is most likely to be effective when the audience is highly educated or likely to hear opposing claims. A) one-sided B) two-sided C) moral D) emotional E) structured

B) two-sided

2) The sets of firms that supply companies with the raw materials, components, parts, information, finances, and expertise needed to create products or services are known as ________. A) retailers B) upstream partners C) distributors D) downstream partners E) distribution channels

B) upstream partners

151) Using ________, retailers can share real-time data on sales and current inventory levels with suppliers. A) automated storage and retrieval systems (ASRS) B) vendor-managed inventory (VMI) systems C) transportation management systems (TMS) D) warehouse management systems (WMS) E) distribution center management systems (DCMS)

B) vendor-managed inventory (VMI) systems

43) Conflict that occurs between different levels of the same marketing channel is known as ________ conflict. A) horizontal B) vertical C) multitiered D) equilateral E) communal

B) vertical

80) ________ involves cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities. A) Sales promotion B) Indirect marketing C) Buzz marketing D) Stealth marketing E) Public relations

C) Buzz marketing

138) ________ buy mostly from producers and sell to retailers and industrial consumers. A) Warehouse clubs B) Factory outlets C) Wholesalers D) Discount stores E) Megaretailers

C) Wholesalers

68) ________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. A) Extensive distribution B) Multichannelization C) Disintermediation D) Inclusive distribution E) Cross merchandising

C) Disintermediation

140) ________ are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. A) Loading docks B) Open warehouses C) Distribution centers D) Shipping platforms E) Product platforms

C) Distribution centers

134) ________ logistics refers to moving products and materials from the suppliers to the factory. A) Outbound B) Diverse C) Inbound D) Reverse E) Customer-centered

C) Inbound

144) How can public relations have a strong impact at a much lower cost than advertising? A) The firm can pay for content to be spread. B) Interested consumers can create the content on their own and spread it. C) Interesting brand stories, events, videos, or other content can be shared by sources out of the company's control, but to its benefit. D) Advertising agencies can minimize the impact of competitors' news. E) Advertising costs have changed dramatically due to changing technologies.

C) Interesting brand stories, events, videos, or other content can be shared by sources out of the company's control, but to its benefit.

101) Which of the following is true of the exclusive distribution strategy? A) It makes products available to everybody, everywhere. B) It is used primarily for convenience items. C) It helps promote a brand's luxury image. D) It gives producers no control over their products. E) It enlists all of the intermediaries willing to carry a company's products.

C) It helps promote a brand's luxury image.

129) Which of the following is most likely a shortcoming of advertising? A) It is the most expensive promotion tool. B) It cannot reach masses of geographically dispersed buyers. C) It is impersonal and lacks the direct persuasiveness of company salespeople. D) It cannot trigger quick sales. E) It cannot be used to build up a long-term image for a product.

C) It is impersonal and lacks the direct persuasiveness of company salespeople.

23) Which of the following statements is true regarding the old mass-media communications model? A) Mass-media costs are decreasing. B) Mass-media audiences are increasing. C) Many viewers are gaining control of message exposure through DVRs and video streaming. D) Ad clutter is decreasing. E) Internet ad spending has stagnated and more marketers are shifting toward TV advertising.

C) Many viewers are gaining control of message

7) ________ includes sales presentations, trade shows, and incentive programs. A) Direct and digital marketing B) Sales promotion C) Personal selling D) Public relations E) Advertising

C) Personal selling

159) ________ perform a role similar to that of brokers or agents but are part of the buyer's organization. A) Truck jobbers B) Merchant wholesalers C) Purchasing officers D) Rack jobbers E) Cash-and-carry wholesalers

C) Purchasing officers

143) Which of the following is true of transporting goods via railroads? A) Railroads are ideal for the transportation of digital technology. B) Railroads are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets. C) Railroads are a cost-effective way to ship large amounts of bulk products over long distances. D) Railroads are the most flexible mode of transportation in their routing and time schedules. E) Railroads are the slowest mode of transportation and are the most affected by the weather.

C) Railroads are a cost-effective way to ship large amounts of bulk products over long distances.

23) ________ retailers in the United States are growing faster than product retailers. A) Discount B) Merchant C) Service D) Specialty E) Off-price

C) Service

136) ________ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. A) Cross B) Price C) Supply chain D) Product cycle E) Customer

C) Supply chain

70) Which of the following is true of changes in the organization of distribution channels? A) Developing new channels seldom causes conflict with a company's established channels. B) To remain competitive, product and service producers must use fewer marketing channels. C) The growth of the Internet threatens many brick-and-mortar companies with disintermediation. D) Companies have fewer channel options today than they did in the past due to economic problems. E) Advances in technology have decreased the number of channels available to entrepreneurial firms.

C) The growth of the Internet threatens many brick-and-mortar companies with disintermediation.

61) Which of the following is most likely a manufacturer-sponsored retailer franchise system? A) international fast food chains like McDonald's and Pizza Hut B) Starbucks outlets operating within Target stores C) Toyota and its network of independent franchised dealers D) licensed bottlers that bottle and sell soft drinks to retailers E) hotel chains like the Ritz Carlton and Shangri-La

C) Toyota and its network of independent franchised dealers

21) Which of the following is an example of an indirect marketing channel? A) June Bride, which sells bridal gowns via its click-to-order online catalogs B) Farmer Brown, who delivers fresh milk from his dairy to customers every morning C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country D) Lifebelt Insurance, which sells life insurance through its door-to-door salespeople E) Rhonda's Rental, which rents cars to people for the day

C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country

139) The manufacturer of Crest toothpaste provides free samples of its toothpaste to dentists and encourages them to distribute these samples to their patients and to inform the patients about advantages of using Crest. The manufacturer of Crest toothpaste is using ________. A) sales promotion B) direct marketing C) a push strategy D) a pull strategy E) a vertical diversification strategy

C) a push strategy

148) A(n) ________ does not take title to goods and represents buyers or sellers on a more permanent basis than a broker. A) full-service wholesaler B) industrial distributor C) agent D) retailer E) cash-and-carry wholesaler

C) agent

20) Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end consumers. This is an example of ________. A) a direct marketing channel B) intensive distribution C) an indirect marketing channel D) disintermediation E) extensive distribution

C) an indirect marketing channel

98) The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ________. A) promotions B) target C) atmosphere D) services mix E) product assortment

C) atmosphere

27) Companies often fail to integrate their various messages to consumers because ________. A) historically, consumers have been able to distinguish between message sources B) advertising departments are reluctant to work with public relations professionals C) communications often come from different parts of the company D) personal selling and sales promotion are in direct conflict E) firms have overemphasized the concept of brand contact

C) communications often come from different parts of the company

119) A strategy of exclusive dealing is most likely considered legal if ________. A) the industry is newly developed B) both parties have large territories C) competition is not substantially lessened D) the dealer agrees to promote the competitor's products E) the dealer receives a steady source of supply and support

C) competition is not substantially lessened

122) Which of the following methods is used by companies to set their advertising budgets based on the industry average? A) percentage-of-sales method B) affordable method C) competitive-parity method D) objective-and-task method E) regression method

C) competitive-parity method

54) A ________ VMS consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone. A) corporate B) contingency C) contractual D) communal E) conventional

C) contractual

53) A ________ VMS integrates successive stages of production and distribution under single ownership. A) contractual B) contingency C) corporate D) conventional E) communal

C) corporate

35) Sears, Target, and Kroger are examples of ________. A) voluntary chains B) retailer cooperatives C) corporate chains D) franchise organizations E) warehouse clubs

C) corporate chains

161) In an attempt to set the company apart from its competitors, Central Parcel Service (CPS) has its employees wear brown uniforms and drive brown trucks. What type of public relations tool is being used by CPS? A) buzz marketing B) corporate logos C) corporate identity materials D) product publicity E) public service materials

C) corporate identity materials

144) The FTC has adopted a three-day cooling-off rule to give special protection to ________. A) customers who purchased because of deceptive advertising B) customers who purchased because of bait-and-switch tactics C) customers who were not seeking a product D) resellers who do not receive proportionately equal treatment from manufacturers E) resellers who are not covered by the Robinson-Patnam Act

C) customers who were not seeking a product

71) In which step of the communication process does the marketing communicator need to know the buyer-readiness stage of the target audience? A) designing the message B) choosing the media through which to send the message C) determining communication objectives D) collecting feedback E) selecting the message source

C) determining communication objectives

137) Which promotional tool is the most immediate, customized, and interactive? A) segmented advertising B) sales promotion C) direct marketing D) horizontal diversification E) public relations

C) direct marketing

25) The early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts. A) department stores B) hypermarkets C) discount stores D) supermarkets E) full-service retailers

C) discount stores

79) An appeal that attempts to stir up either negative or positive sentiments that can motivate purchase is called a(n) ________ appeal. A) rational B) structural C) emotional D) moral E) standard

C) emotional

66) Marketing communicators must be good at ________ messages that take into account how the target audience ________ them. A) delivering; encodes B) sending; encodes C) encoding; decodes D) retrieving; perceives E) decoding; receives

C) encoding; decodes

120) Which of the following involves the producer agreeing not to sell to other dealers in a given area, or the buyer agreeing to sell only in its own region? A) closed loop marketing B) uniform-delivery pricing C) exclusive territorial agreement D) cross merchandising E) nationalized marketing

C) exclusive territorial agreement

66) Which of the following is an advantage of adding new channels in a multichannel distribution system? A) limiting market complexity B) reducing control over the system C) expanding sales and market coverage D) decreasing marketing needs and costs E) minimizing mass customization of products

C) expanding sales and market coverage

58) When a customer lets a producer know something about its products or advertising, the customer is providing ________. A) decoding B) noise C) feedback D) encoding E) reverse marketing

C) feedback

3) Retailers connect brands with consumers in the ________ phases of the buying process. A) need identification B) evaluation of alternatives C) final D) information gathering E) post-purchase

C) final

33) McDonald's, Subway, and Jiffy Lube are all examples of ________. A) voluntary chains B) retailer cooperatives C) franchises D) category killers E) power centers

C) franchises

10) Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process? A) self-service retailer B) limited-service retailer C) full-service retailer D) independent retailer E) off-price retailer

C) full-service retailer

85) An ideal price policy scenario for retailers would be to achieve ________ while earning ________. A) low volume; high markups B) low volume; low markups C) high volume; high markups D) high volume; low markups E) high volume; zero markups

C) high volume; high markups

100) Macy's department stores carry a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Macy's typically charges a relatively high markup, but also holds frequent sales and price promotions, in particular offering discounts to customers who use a Macy's credit card. Macy's uses ________. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) retail convergence

C) high-low pricing

31) Delia's is a clothing retailer that targets teenage girls. The company runs coordinated promotions for its catalogs, Web site, and retail outlets. It uses the same models in its catalog, print ads, and Web site. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all aspects. From this information, we can infer that Delia's is using ________. A) buzz marketing B) experiential marketing C) integrated marketing communication D) word-of-mouth marketing E) database marketing

C) integrated marketing communication

142) Which of the following public relations functions involves maintaining relationships with shareholders and those in the financial community? A) direct marketing B) press relations management C) investor relations management D) development E) lobbying

C) investor relations management

10) A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. A) product line B) product delivery network C) marketing channel D) consumer base E) resource bank

C) marketing channel

64) The AIDA model identifies the characteristics of an effective ________. A) advertising budget B) channel of communication C) marketing message D) marketing mix E) marketing response

C) marketing message

131) Many shoppers now check out merchandise in-store and then buy it online. This process is called webrooming.

true

123) Touchscreen kiosks, handheld shopping assistants, interactive dressing-room mirrors and virtual sales associates are all examples of how retailers use technology to ________. A) maintain inventory costs B) send information between stores C) meet consumers' expectations D) produce more accurate forecasts E) interact with suppliers

C) meet consumers' expectations

119) With their size and buying power, ________ can offer better merchandise selections, good service, and strong price savings to consumers. A) convenience stores B) franchises C) megaretailers D) power centers E) lifestyle centers

C) megaretailers

53) A(n) ________ is a set of symbols that the sender transmits. A) encoder B) feedback loop C) message D) media E) decoder

C) message

64) Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and through local retailers as well. Which of the following is evident here? A) corporate vertical marketing system B) horizontal marketing system C) multichannel distribution system D) administered vertical marketing system E) conventional distribution channel

C) multichannel distribution system

84) A ________ generally contains between 5 and 15 stores. It is close and convenient for consumers, usually contains a supermarket, perhaps a discount store, and several service stores such as a dry cleaner, a drugstore, and a hardware store. A) regional shopping center B) community shopping center C) neighborhood shopping center D) warehouse club E) factory outlet

C) neighborhood shopping center

156) Which of the following is a major tool used by PR professionals? A) standardized global advertising B) market penetration C) news D) bait-and-switch strategy E) product packaging

C) news

124) Store retailers must master ________, integrating store and online channels into a single shopper experience. A) showrooming B) single-channel retailing C) omni-channel retailing D) webrooming E) dual-channel retailing

C) omni-channel retailing

90) Communication through a telephone call is considered a part of a(n) ________ communication channel. A) online B) nonverbal C) personal D) nonpersonal E) unidirectional

C) personal

89) Which of the following terms best describes the channels through which two or more people communicate directly with each other, including face-to-face, mail, e-mail, texting, or an Internet chat? A) shared communication channel B) earned communication channel C) personal communication channel D) nonverbal communication channel E) owned communication channel

C) personal communication channel

115) Many retailers are now experimenting with limited-time shops that allow them to promote their brands to seasonal shoppers and create buzz in busy areas. Which of the following terms best represents such shops? A) power centers B) strip malls C) pop-up stores D) category killers E) lifestyle centers

C) pop-up stores

76) Daizy's is a shop that carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________. A) service mix B) pricing C) product assortment D) store atmosphere E) distribution strategy

C) product assortment

136) A newspaper article announced that Connect Wireless, the sixth-largest wireless carrier in a country, was changing its name to M-Mobile and that to begin the makeover process it had replaced spokesperson Robert Garmon with Catherine Naylor. Which of the following elements of a promotion mix is represented in this example? A) sales promotion B) advertising C) public relations D) personal selling E) direct marketing

C) public relations

138) Under which promotional mix strategy does the producer direct its marketing activities toward channel members to induce them to carry the product and promote it to final consumers? A) pull strategy B) blitz strategy C) push strategy D) buzz strategy E) pulse strategy

C) push strategy

142) John Deere does very little promoting of its lawn mowers and garden tractors to final consumers. Instead, John Deere's sales force works with Lowe's, Home Depot, independent dealers, and other channel members, who in turn sell John Deere products to final consumers. According to this information, which of the following promotion mix strategies is being used by John Deere? A) public relations strategy B) direct marketing strategy C) push strategy D) blitz strategy E) pull strategy

C) push strategy

160) Wholesalers must ________ to maintain their profits. A) raise their prices to their retail customers B) find efficient ways to deliver value to their customers C) reduce the number of customers they work with D) increase the number of services they offer E) improve the relationships with the suppliers

C) reduce the number of customers they work with

94) Many firms hire celebrities to appear in their advertisements. Which step of the communication process is represented? A) collecting feedback B) designing a message C) selecting the message source D) determining the communication objectives E) choosing the media

C) selecting the message source

91) A ________ is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. A) warehouse club B) franchise C) shopping center D) supermarket E) hypermarket

C) shopping center

17) Which of the following is the most frequently visited type of retail store? A) convenience store B) department store C) supermarket D) superstore E) off-price retailer

C) supermarket

5) The term demand chain is considered limited because it ________. A) advocates a make-and-sell view of the market that relies on a responsive supply network B) suggests that planning starts with raw materials, productive inputs, and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) ignores the evolution of the global marketplace E) overlooks the needs of target customers

C) takes a step-by-step, linear view of purchase-production-consumption activities

18) Today's consumers do not need to rely on marketer-supplied information about products and services because they can use ________ to seek out a wealth of information. A) push strategies B) direct and digital marketing C) the Internet D) personal selling E) public relations

C) the Internet

91) The company's channel objectives are influenced by all of the following EXCEPT ________. A) the company's marketing intermediaries B) the company's competitors C) the age of the company D) the nature of the company E) the company's products

C) the age of the company

47) Conflict in the channel can be healthy because ________. A) it can disrupt channel effectiveness B) normal give-and-take simply is normal C) the channel could become passive and non-innovative D) it can cause harm to channel relationships E) the respective rights of the channel partners take priority

C) the channel could become passive and non-innovative

62) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the new makeup. In the context of the communication model, measuring which of the following would be the best way for the source to measure feedback? A) the number of subscribers to Ladies' Home Journal B) the number of people who make up the target market C) the number of people who redeem the coupon D) the number of people who have purchased Maybelline products in the past E) the number of people to whom Gigi Hadid is an appealing spokesperson

C) the number of people who redeem the coupon

1) A company's total marketing communications mix consists of a specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this set of communications tools? A) the product mix B) product line filling C) the promotion mix D) the price mix E) horizontal diversification

C) the promotion mix

65) To communicate effectively, a marketing communicator should most likely ________. A) ensure that the encoding and decoding processes are different B) encode and decode the message personally and frequently C) understand the consumer's field of experience D) foresee unplanned static or distortion E) use familiar words and symbols

C) understand the consumer's field of experience

36) Independent Grocers Alliance, Do-It Best, and Western Auto are examples of ________. A) franchise organizations B) warehouse clubs C) voluntary chains D) category killers E) wholesale clubs

C) voluntary chains

12) Distribution channel decisions frequently require long-term commitments between firms. A primary reason is that ________. A) advertising is not easy to change B) old products are difficult to discard and new products are difficult to introduce C) when they set up distribution through franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Internet sites if conditions change D) changing the manufacturing requirements is expensive and takes significant time E) management does not want to be constantly changing the method of selling and distributing its products

C) when they set up distribution through franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Internet sites if conditions change

107) Advertisements for prescription drugs often feature potential benefits and negative side effects that consumers may experience with use of the medication. These ads present two-sided arguments.

true

130) ________ involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit. A) Advertising B) Product positioning C) Mass customization D) Marketing logistics E) Branding

D) Marketing logistics

146) Which of the following is true about using air carriers as a transportation mode when shipping products? A) Air carriers are the most cost-effective way to ship non-perishable goods over short distances. B) Air carriers are the slowest and least reliable modes of transport. C) Air carriers provide in-transit services such as the processing of goods en route. D) Air carriers are ideal when time is short and speed is needed. E) Air carriers are a specialized means of shipping chemicals from sources to markets.

D) Air carriers are ideal when time is short and speed is needed.

99) Which of the following best describes a similarity between Costco and Walmart? A) Both are warehouse clubs. B) Both target the same affluent market. C) Both are specialty stores. D) Both use everyday low pricing. E) Both are examples of merchant wholesalers.

D) Both use everyday low pricing.

77) ________ were the main form of retail clusters until the 1950s. A) Strip malls B) Discount stores C) Independent off-price retailers D) Central business districts E) Regional shopping malls

D) Central business districts

17) Which of the following companies uses a direct marketing channel? A) Fishhooks, a factory that manufactures fishing equipment that it ships to hobby stores worldwide B) Germfight, a factory that manufactures dental products that it distributes only to select department stores C) Apple Blossoms, a company that sells its cosmetics exclusively through Ray's Retail Store D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-to-order catalogs E) Showdown, a clothing store that stocks merchandise from different international brands

D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-to-order catalogs

124) Which of the following statements is most likely true regarding the competitive-parity method? A) This method involves starting with total revenues, deducting operating expenses and capital outlays, and then devoting some portion of the remaining funds to advertising. B) It is based on the availability of funds rather than on opportunities. C) It wrongly views sales as the cause of promotion rather than as the result. D) In this method, promotion budgets are set to match competitors' outlays. E) This method involves setting the promotion budget at a certain percentage of current or forecasted sales.

D) In this method, promotion budgets are set to match competitors' outlays.

40) Which of the following does NOT apply to channel systems? A) Some channel systems consist of only informal interactions among loosely organized firms. B) Channel systems do not stand still; they evolve. C) Some channel systems are formal interactions guided by strong organizational structures. D) Intermediaries play interchangeable roles in the system. E) Different types of intermediaries develop and emerge.

D) Intermediaries play interchangeable roles in the system.

146) Which of the following best explains why public relations is often overlooked as a tool for supporting product marketing objectives? A) Public relations departments are typically large divisions within corporations. B) The time and costs associated with public relations prohibit its extensive use. C) Public relations specialists lack the skills necessary to work with marketing experts. D) Many public relations professionals see their jobs as communicating, not brand building. E) The public relations department handles stockholders and legislators but not employees.

D) Many public relations professionals see their jobs as communicating, not brand building.

95) Whitelight sells its toothpastes in many convenience stores across the country. This is an example of ________ distribution. A) exclusive B) selective C) hybrid D) intensive E) normal

D) intensive

60) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the new makeup. In terms of the communication model, the sender of this message is ________. A) Gigi Hadid B) Ladies' Home Journal C) readers who redeem the $2-off coupon D) Maybelline E) the target market to which Gigi Hadid appeals

D) Maybelline

144) ________ are the largest group of wholesalers. They include two broad types: full-service wholesalers and limited-service wholesalers. A) Brokers B) Manufacturer sellers C) Manufacturers' agents D) Merchant wholesalers E) Selling agents

D) Merchant wholesalers

133) ________ logistics involves moving products from the factory to resellers and ultimately to customers. A) Customer-centered B) Reverse C) Upstream D) Outbound E) Inbound

D) Outbound

145) ________ are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets. A) Air tunnels B) Rail flatcars C) Steam ships D) Pipelines E) Airlines

D) Pipelines

120) ________ is known as the merging of consumers, products, prices, and retailers. A) Retail conglomeration B) Consumer convergence C) Price merging D) Retail convergence E) Retail clustering

D) Retail convergence

133) ________ consists of strong short-term incentives that invite and reward quick responses from customers. A) Public relations B) Personal selling C) Advertising D) Sales promotion E) Direct marketing

D) Sales promotion

16) ________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating. A) Warehouse clubs B) Off-price retailers C) Discount stores D) Supermarkets E) Factory outlets

D) Supermarkets

150) ________ are a type of limited-service wholesaler who carries a limited line of semiperishable merchandise (such as milk, bread, and snack foods), which is sold for cash as deliveries are made to supermarkets, small groceries, or hotels. A) Industrial distributors B) Wholesale merchants C) Full-service wholesalers D) Truck jobbers E) Purchasing agents

D) Truck jobbers

142) Which of the following is true of using trucks as a transportation mode? A) Transportation via trucks is costlier than by rail or air. B) Trucks are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets. C) Trucks provide in-transit services such as the diversion of shipped goods to other destinations en route. D) Trucks are highly flexible in their routing and time schedules. E) Trucks are the slowest mode of transportation and most affected by the weather.

D) Trucks are highly flexible in their routing and time schedules.

82) Moral appeals ________. A) relate to the audience's self-interest by showing that the product will produce the desired benefits B) attempt to stir up either negative or positive emotions that can motivate purchase C) range from love, joy, and humor to fear and guilt D) are directed to an audience's sense of what is "right" and "proper" E) are based on the idea that practical benefits are more important for consumers than emotions

D) are directed to an audience's sense of what is "right" and "proper"

76) Using the AIDA model, an effective marketing message should get attention, hold interest, ________, and obtain action. A) create differences B) enhance doubts C) double interest levels D) arouse desire E) minimize dismay

D) arouse desire

67) Marketing communicators must know what ________ and what ________. A) products they wish to sell; audiences they want to target B) distribution channel(s) they wish to use; timing they need C) advertising media they will use; message they will send D) audiences they wish to reach; responses they want E) message they will send; feedback they expect

D) audiences they wish to reach; responses they want

48) While using integrated marketing communications, the communications process should start with a(n) ________. A) advertising strategy B) competitive-parity analysis C) long-term public relations plan D) audit of all potential customer touch points E) strategy for implementing a social media presence

D) audit of all potential customer touch points

73) Among the buyer-readiness stages, the first stage is ________. A) preference B) knowledge C) liking D) awareness E) insistence

D) awareness

143) Which of the following wholesaler's channel functions is exemplified by buying in carload lots and then dividing these lots into small quantities? A) warehousing B) transportation C) risk bearing D) bulk breaking E) selling and promoting

D) bulk breaking

92) A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the company's new products. This is an example of ________. A) a reverse marketing activity B) nonpersonal marketing C) sales promotion D) buzz marketing E) direct marketing

D) buzz marketing

27) Which of the following is NOT a type of off-price retailer? A) independent B) factory outlet C) warehouse club D) category killer E) wholesale club

D) category killer

32) Excel Enterprises uses a Web site, online social networks, and print advertisements to promote its products. Since Excel Enterprises practices integrated marketing communications, all these different brand contacts maintain ________ in design and tone. A) variety B) simplicity C) creativity D) consistency E) flexibility

D) consistency

26) Marketers now view themselves as ________ that create and share brand messages and conversations with and among customers across a mix of paid, owned, earned, and shared communication channels. A) promotion managers B) public relations managers C) sales managers D) content marketing managers E) account managers

D) content marketing managers

160) Logos, uniforms, brochures, and company trucks are all examples of ________ materials that can be used to help a company create a visual image which the public can immediately recognize. A) direct marketing B) social marketing C) public service D) corporate identity E) buzz marketing

D) corporate identity

75) Changes to service differentiation include all of the following EXCEPT ________. A) smarter customers B) decreased services at department stores C) more price-sensitive consumers D) customers' willingness to pay more for identical brands E) increased services from discounters

D) customers' willingness to pay more for identical brands

56) In a communication process, a receiver assigns meaning to the symbols encoded by a company in its advertisements through a process known as ________. A) integrating B) reciprocating C) acknowledging D) decoding E) coordinating

D) decoding

79) Until retailers ________ their markets, they cannot make consistent decisions about product assortment, services, pricing, or advertising. A) create B) communicate with C) divide up D) define and profile E) design products for

D) define and profile

89) Which of the following is NOT a step in designing an effective marketing channel? A) evaluating the channel alternatives B) identifying major channel alternatives C) analyzing consumer needs D) determining pricing policy for channel members E) setting channel objectives

D) determining pricing policy for channel members

140) One of the functions performed by a PR department is ________, which involves working with donors or members of nonprofit organizations to gain financial or volunteer support. A) direct marketing B) press relations management C) investor relations management D) development E) lobbying

D) development

17) Changes to the marketing communications model include that consumers are changing and are better informed, that marketing strategies are changing and are moving from mass marketing, and that ________. A) manufacturing processes are becoming more efficient B) distribution of products worldwide is more feasible and cost-effective C) segmenting and targeting of consumers are more detailed than ever before D) digital technologies are changing the ways companies and customers communicate E) retailing is more competitive with more sources of products available for consumers

D) digital technologies are changing the ways companies and customers communicate

51) HP's advertising agency assembles words and illustrations into an advertisement that conveys the company's intended brand message. In the context of the communication process, HP is ________. A) messaging B) decoding C) sending D) encoding E) responding

D) encoding

96) Cabela's stores are as much natural history museums for outdoor enthusiasts as they are retail outlets. This information indicates that Cabela's is practicing ________. A) wholesaling B) nonstore retailing C) shopper marketing D) experiential retailing E) showrooming

D) experiential retailing

117) The online and mobile equivalent of a pop-up store is ________. A) door buster deals B) Black Friday specials C) high-low pricing D) flash sales sites E) everyday low pricing

D) flash sales sites

121) Producers of strong brands sometimes sell to dealers only on the condition that dealers take some or all of the rest of a product line. This practice is known as ________. A) product line franchising B) selective dealing C) cross merchandising D) full-line forcing E) disintermediation

D) full-line forcing

45) The management of two Panizza restaurants has an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict. A) intensive B) selective C) exclusive D) horizontal E) vertical

D) horizontal

69) While developing an effective integrated communication, once the target audience has been defined, marketers must do all these steps EXCEPT ________. A) determine the desired response B) collect feedback C) choose the media through which to send a message D) identify potential distractions E) design a message

D) identify potential distractions

139) One of the functions performed by a PR department is ________, which involves building and maintaining relations with legislators and government officials to influence legislation and regulation. A) direct marketing B) press relations management C) investor relations management D) lobbying E) public affairs management

D) lobbying

2) Many institutions, including retailers, wholesalers, and ________ do retailing. A) schools B) government agencies C) factory farmers D) manufacturers E) defense contractors

D) manufacturers

145) What is the most common type of agent wholesaler? A) wholesale merchant B) industrial distributor C) limited-service wholesaler D) manufacturers' representative E) truck jobber

D) manufacturers' representative

22) Companies are doing less ________ and more ________ as a result of the explosive developments in communication technologies to better target smaller customer segments. A) personal selling; digital activities B) public relations activities; digital activities C) digital activities; mass marketing D) mass marketing; digital marketing E) viral marketing; word-of-mouth marketing

D) mass marketing; digital marketing

24) Of the various digital marketing categories, ________ is the fastest-growing category. A) blogs B) e-mail C) social media D) mobile E) brand Web sites

D) mobile

83) A charitable trust's appeal which states, "While you are trying to figure out what to get the man who has everything, don't forget the man who has nothing" is an example of a(n) ________ appeal. A) structural B) awareness C) rational D) moral E) standard

D) moral

125) Which of the following is the most logical budget-setting method? A) percentage-of-sales method B) affordable method C) competitive-parity method D) objective-and-task method E) push method

D) objective-and-task method

140) Which of the following is NOT one of a wholesaler's channel functions? A) financing B) risk bearing C) transportation D) off-price retailing E) bulk breaking

D) off-price retailing

145) Of the following actions, which is permitted in personal selling activities? A) obtain or use trade secrets B) criticize competitors by using inaccurate information C) bribes to those who can influence a sale D) offer incentives such as discounts based on size of an order E) stretching the truth when describing advantages of a product

D) offer incentives such as discounts based on size of an order

46) In order to avoid shortsightedness, today marketers are moving toward viewing communications as managing the ________. A) organizational culture B) nonpersonal communication channels C) word-of-mouth influence D) ongoing customer relationships with the company E) product life cycle

D) ongoing customer relationships with the company

77) Which of the following statements is true about personal communication channels? A) A magazine advertisement exemplifies the use of a personal communication channel. B) All personal communication channels are directly controlled by a company. C) Personal communication channels do not allow sending and receiving of feedback. D) ord-of-mouth influence uses a personal communication channel. E) A billboard message exemplifies the use of a personal communication channel.

D) ord-of-mouth influence uses a personal communication channel.

116) To help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners, companies are now installing integrated high-tech ________ systems. A) advertiser funded programming B) customer segmentation network C) brand content management D) partnership relationship management E) closed loop marketing

D) partnership relationship management

132) Which of the following promotional tools is the most effective in building up buyers' preferences, convictions, and actions? A) mass-market advertising B) sales promotion C) segmented advertising D) personal selling E) public relations

D) personal selling

147) In intermodal transportation, which of the following describes the use of both rail and trucks for transportation? A) fishyback B) drawbar C) trainship D) piggyback E) airtruck

D) piggyback

47) Communications programs need to be developed for specific niches, individuals, and ________. A) genders B) countries C) departments D) products E) segments

D) products

10) Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events, and Web pages? A) sales promotion B) direct and digital marketing C) advertising D) public relations E) horizontal diversification

D) public relations

137) Which of the following promotion tools involves building up a positive corporate image and handling unfavorable stories and events? A) sales promotion B) personal selling C) direct marketing D) public relations E) advertising

D) public relations

5) Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events? A) sales promotion B) personal selling C) direct and digital marketing D) public relations E) advertising

D) public relations

80) A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts customers from a wide area. A) community shopping center B) neighborhood shopping center C) central business district D) regional shopping center E) strip mall

D) regional shopping cente

49) Which of the following is one of the four major communication functions? A) coordination B) distribution C) noise D) response E) preference

D) response

22) Which of the following would be considered a service retailer? A) factory outlets B) supermarkets C) jewelry stores D) restaurants E) gas stations

D) restaurants

100) Craftsman Furniture Company offers its bedroom and living room furniture through independent and smaller chain furniture stores, not through every store that sells furniture. It uses ________ distribution. A) intensive B) direct C) corporate D) selective E) exclusive

D) selective

162) Steps involved in determining when and how to use product public relations include ________, choosing the PR message and media, implementing the PR plan, and evaluating the results, plus integrating with the full marketing communications effort. A) defining the budget B) hiring the media creators C) collecting feedback D) setting PR objectives E) determining the messenger

D) setting PR objectives

121) Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online? A) pop-up shopping B) wheel-of-retailing C) off-price retailing D) showrooming E) wholesaling

D) showrooming

94) For which of the following products would the intensive distribution strategy most likely be used? A) high-end cameras B) luxury cars C) lawn mowers D) soft drinks E) furniture

D) soft drinks

37) GameStop sells only video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________. A) department store B) convenience store C) category killer D) specialty store E) off-price retailer

D) specialty store

87) Neighborhood shopping centers are also known as ________. A) power centers B) lifestyle centers C) warehouse clubs D) strip malls E) regional shopping centers

D) strip malls

19) Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services? A) off-price retailer B) specialty store C) factory outlet D) superstore E) convenience store

D) superstore

1) Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company's ________. A) upstream partnerships B) marketing channels C) inventory providers D) supply chain E) downstream partnerships

D) supply chain

54) In the communication process, an actual HP printer/fax machine advertisement would be considered ________. A) encoding B) decoding C) the product D) the message E) the medium

D) the message

50) A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system. A) horizontal B) communal C) multitiered D) vertical E) equilateral

D) vertical

139) Major logistics functions are logistics information management, inventory management, transportation, and ________. A) advertising B) product design C) financial projections D) warehousing E) customer sales

D) warehousing

141) Which of the following wholesaler's channel functions is demonstrated when a wholesaler holds inventories and thereby reduces inventory holding costs and risks of suppliers and customers? A) financing B) transporting C) buying and assortment building D) warehousing E) bulk breaking

D) warehousing

149) Which of the following is the most effective way for a company to ship bulky, non-perishable products if its key requirement is low price? A) pipelines B) air transport C) trucks D) water carriers E) piggyback

D) water carriers

59) ________ VMS is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. A) Contingent B) Aligned C) Corporate D) Contractual E) Administered

E) Administered

152) ________ are agents who take physical possession of products and negotiate sales. They deal mostly with agricultural marketing. A) Industrial distributors B) Cash-and-carry wholesalers C) Purchasing officers D) Rack jobbers E) Commission merchants

E) Commission merchants

151) ________ are a type of limited-service wholesaler who does not carry inventory or handle a product. They typically operate in bulk industries, such as coal, lumber, and heavy equipment. A) Wholesale merchants B) Industrial distributors C) Cash-and-carry wholesalers D) Rack jobbers E) Drop shippers

E) Drop shippers

5) ________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Point-of-purchase marketing C) Social media marketing D) Virtual marketing E) Omni-channel retailing

E) Omni-channel retailing

9) ________ are retailers that offer sales assistance because they carry more shopping goods about which customers might need information. A) Self-service retailers B) Full-service retailers C) Off-price retailers D) Limited-service retailers E) Specialty-service retailers

E) Specialty-service retailers

87) Which of the following advertising slogans most likely represents a two-sided argument? A) Breakfast of champions B) Good to the last drop C) A diamond is forever D) The ultimate driving machine E) The next big thing is already here

E) The next big thing is already here

19) Which of the following statements is true regarding today's marketing communications? A) More marketers are shifting away from narrowly defined micromarkets and moving toward mass marketing. B) More customers have started relying on marketer-supplied information rather than finding out information on their own. C) Network television, magazines, newspapers, and other traditional mass media continue to increase their dominance. D) Focused marketing programs, which are designed to build closer relationships with customers in more narrowly defined micromarkets, are no longer used by marketers. E) Today's consumers are better informed about products and services.

E) Today's consumers are better informed about products and services.

144) Which of the following is true of shipping goods via water transportation? A) Water transportation is an efficient way to ship perishable merchandise over long distances. B) Water carriers are highly flexible in their routing and time schedules. C) Water transportation provides in-transit services, such as the processing of goods en route. D) Water transportation is ideal when time is short and speed is needed. E) Water transportation is the slowest mode of transportation and the most affected by the weather.

E) Water transportation is the slowest mode of transportation and the most affected by the weather.

140) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their auto body shops to use Glasis paint is an example of how a company uses ________. A) word-of-mouth influence B) public relations C) buzz marketing D) a push strategy E) a pull strategy

E) a pull strategy

119) While using the ________ method for setting an advertising budget, a company starts with total revenues, deducts operating expenses and capital outlays, and then devotes some portion of the remaining funds to advertising. A) integrated B) moving-average C) competitive-parity D) percentage-of-sales E) affordable

E) affordable

84) Display media includes ________. A) newspapers B) magazines C) television D) company Web sites E) billboards

E) billboards

21) Home Depot and PetSmart are examples of ________. A) factory outlets B) warehouse clubs C) superstores D) off-price retailers E) category killers

E) category killers

18) At its most basic form, a marketing channel consists of the producer and the ________. A) retailer B) sales agent C) competitor D) processor E) consumer

E) consumer

30) Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all ________. A) have equal portions of the advertising budget B) use independent communications directors C) develop separate marketing objectives D) engage the same target audience E) deliver a clear, consistent, and compelling message

E) deliver a clear, consistent, and compelling message

2) Which of the following is one of the five major promotion tools? A) market penetration B) strategic positioning C) product line filling D) market diversification E) direct and digital marketing

E) direct and digital marketing

52) The decision to use an NBA star player to communicate the desirability of Nike basketball shoes represents the ________ process of the communication model. A) sourcing B) messaging C) acknowledging D) decoding E) encoding

E) encoding

88) A marketer making decisions about the headline, copy, illustration, and colors for a print ad is determining the message ________. A) structure B) content C) medium D) channel E) format

E) format

44) Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict. A) equilateral B) vertical C) multitiered D) communal E) horizontal

E) horizontal

62) When McDonald's offers its products inside of a Walmart store, it is using a(n) ________. A) conventional marketing system B) corporate VMS C) contractual VMS D) administered VMS E) horizontal marketing system

E) horizontal marketing system

19) A marketing channel that consists of one or more intermediaries is known as a(n) ________ marketing channel. A) cyclic B) upstream C) looped D) direct E) indirect

E) indirect

104) Which of the following is NOT a criterion a company will use to evaluate the major channel alternatives? A) adaptability B) control C) commitment D) sales and costs E) likability

E) likability

75) Which buyer-readiness stage are consumers in when they are feeling favorable about the product? A) preference B) conviction C) knowledge D) purchasing E) liking

E) liking

155) Carey David's wholesale company helps retailers train salesclerks, improve store layouts and displays, and set up inventory control systems. According to this information, which of the following wholesaler's channel functions does Carey David provide? A) buying and assortment building B) selling and promotion services C) risk bearing services D) marketing information E) management services and advice

E) management services and advice

83) In addition to segmenting and targeting the correct market, which of the following is NOT an area in which marketers must make decisions? A) product assortment B) services mix C) store's atmosphere D) using experiential retailing E) manufacturing schedules

E) manufacturing schedules

65) Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star City stores. This is an example of a(n)________ distribution system. A) conventional B) inclusive C) intensive D) extensive E) multichannel

E) multichannel

63) A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments. A) conventional distribution B) corporate vertical marketing C) horizontal marketing D) administered vertical marketing E) multichannel distribution

E) multichannel distribution

89) Digital promotions have grown in usage and include e-mail, social media, Web sites, and ________. A) demonstrations B) displays C) store flyers D) newsletters E) online ads and video

E) online ads and video

21) Which of the following is a specialized and highly targeted media selection that an advertiser might use to reach smaller customer segments with personalized content? A) radio B) magazines C) newspapers D) network television E) online social networks

E) online social networks

159) Which of the following is an example of audiovisual material used by PR professionals? A) blogs B) logos C) vision statements D) brochures E) online videos

E) online videos

56) The advertisements that use the Aflac duck or the GEICO gecko are using the message execution style of ________. A) lifestyle B) technical expertise C) testimonial evidence D) slice of life E) personality symbols

E) personality symbols

25) Which of the following is an indirect business marketing channel? A) producer to retailer to business distributor B) producer to wholesaler to retailer to end consumer C) producer to end-consumer to business distributor D) producer to retailer E) producer to business distributor to business customer

E) producer to business distributor to business customer

131) Marketing logistics includes all of the following EXCEPT ________. A) reverse logistics B) inbound logistics C) outbound logistics D) customer-centered logistics E) producer-centered logistics

E) producer-centered logistics

40) Pepsi being prominently featured on episodes of Empire is an example of ________. A) advertainment B) buzz marketing C) personal selling D) sales promotion E) product placement

E) product placement

147) The owner of Second Avenue wants to establish a community clothing drive to collect clothes for a local children's shelter. The owner is planning to set up collection barrels outside Second Avenue. In this case, which of the following public relations tools is being used by the owner? A) press relations B) product publicity C) lobbying D) development E) public affairs

E) public affairs

141) The National Pork Board developed "Pork. The Other White Meat" campaign. The campaign provided nutritional information and pork recipes in an attempt to encourage people to view pork as a tasty alternative to poultry and fish. Which of the following functions was the goal of this public relations campaign? A) influencing government regulations on pork B) gaining financial support for pork producers C) creating newsworthy information about pork D) maintaining relationships with pork producers E) rebuilding consumer interest in pork

E) rebuilding consumer interest in pork

6) A view of the market that specifies that planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value is a(n) ________ view. A) make-and-sell B) identify-and-target C) purchase-produce-and-consume D) market-and-profit E) sense-and-respond

E) sense-and-respond

145) Which of the following is NOT one of the publics to which a public relations department must answer? A) stockholders B) legislators C) the press D) employees E) suppliers

E) suppliers

90) In designing the marketing channel, a company must balance customer needs and wants with ________. A) the need to make a profit B) the requirement to find channel members to fill all the steps C) the firm's position in the customers' minds D) the desire to be "the best" in all service areas E) the firm's resources and skills to provide all the desired services

E) the firm's resources and skills to provide all the desired services

11) In addition to the specific promotion tools, marketing communication requires ________ for greatest impact. A) the engineering and manufacturing departments work together B) the sales force lead the communication process C) the advertising be developed with the manufacturers' representatives D) the pubic relations staff work closely with the sales force E) the promotion, product, price, and place be coordinated

E) the promotion, product, price, and place be coordinated

46) When KFC came into conflict with its franchisees over the brand's Unthink KFC repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict. A) equilateral B) horizontal C) multitiered D) communal E) vertical

E) vertical

91) Personal communications about a product between target buyers and neighbors, friends, family members, associates, and other consumers, are known as ________. A) personal selling B) direct marketing C) public relations D) buzz marketing E) word-of-mouth influence

E) word-of-mouth influence

107) Marketing channel design calls for analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives.

true

108) Although television advertising has high absolute costs, its cost per exposure is relatively low.

true

156) Because personal selling involves developing relationships, it is acceptable for salespeople to stretch claims they make about a product's advantages.

false

160) Reverse logistics refers to the moving of products and materials from suppliers to the factory.

false

162) In contrast to distribution centers, storage warehouses are designed to move goods rather than just house them.

false

108) Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities.

true

112) While advertisers can accurately measure the communications effects of their ads, measuring sales and profit effects are more difficult.

true

100) Encoding is the process by which the receiver assigns meaning to symbols.

false

101) Decoding is the process by which a sender puts his or her thoughts into a symbolic form.

false

102) A good marketing message will try to move consumers through several steps of the buyer-readiness stages in a single message.

false

103) Retailers first must position themselves in a market and then decide how they will define the target customers in these markets.

false

104) Rational appeals are often used to urge people to support social causes, such as a cleaner environment or helping the disadvantaged.

false

105) Professional athletes such as Peyton Manning and Maria Sharapova are featured in advertisements for Gatorade. According to this information, Gatorade is utilizing branded entertainment.

false

105) The "Stop. Think. Tylenol." ad slogan is an example of a moral appeal.

false

105) The colors, layout, and music in a store or a product package are only minor aspects of the shopping experience and marketers spend little time making decisions about them.

false

106) A neighborhood shopping center has from 50 to more than 100 stores.

false

106) All personal communication channels are controlled directly by the company.

false

107) The message execution style of personality symbol involves identifying and presenting ordinary people saying how much they like a product.

false

108) Producers of convenience products and common raw materials typically seek exclusive distribution, a strategy in which they stock their products in as many outlets as possible.

false

109) In an endorsement style of execution, the endorsers can be characters that represent the product.

false

109) Under the strategy of intensive distribution, the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories.

false

110) The direct mail medium has very low cost per exposure.

false

110) The producer informs each channel member what its responsibilities are, and what the terms of business are.

false

111) Reach is a measure of how many times the average person in the target market is exposed to the message.

false

113) The communication effects of advertisements and ad campaigns are more difficult to measure than the sales and profit effects.

false

115) Recently, the increased use of online social networks and video sharing has reduced the need for advertising standardization with global brands.

false

12) Advertising involves a personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.

false

123) As a part of intensive distribution, dealers are expected to refrain from selling the products of the producers' competitors.

false

124) When a producer uses exclusive dealing and the use of exclusive territorial agreements to keep a dealer from selling outside its territory, it is completely legal.

false

128) The life cycle of new retail forms is getting longer.

false

129) Retail convergence means lower competition for retailers and lower difficulty in differentiating the product assortments of different types of retailers.

false

13) Sales promotion involves building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

false

147) The affordable method of setting advertising budgets takes into consideration the effects of promotion on sales.

false

148) The affordable method of setting advertising budgets more frequently results in overspending, rather than in underspending.

false

149) PR can have a strong impact on public awareness at a much higher cost than advertising can.

false

150) When using public relations, the company pays for space and time in the media.

false

151) The affordable method involves setting promotion budgets to match competitors' outlays.

false

154) Using a push strategy, the producer directs its marketing activities (primarily advertising and consumer promotion) toward final consumers to induce them to buy the product.

false

155) Integrating the promotion mix starts with suppliers.

false

162) Wholesalers realize that they increase value to their customers by watching for better ways to meet the needs of their suppliers and target customers. This involves reducing the services they provide to retailers.

false

163) Air carriers transport digital products from producer to customer via satellite, cable, phone wire, or wireless signal.

false

165) While a company can choose to participate in public service activities, doing so has no impact on public goodwill toward the company.

false

30) The role of marketing intermediaries is to transform the assortments of products made by retailers into the assortments wanted by producers.

false

32) It is more efficient for a company to keep the marketing channel functions—such as information gathering, promotion, contacting customers and matching their needs, negotiation, and physical distribution—in-house as they are most skilled at those functions.

false

33) The number of products supplied indicates the length of a channel.

false

34) In a direct marketing channel, the producer sells directly to the intermediaries, who in turn sell directly to the customers.

false

37) Mass marketers can expect consumers to distinguish between commercial message sources to maintain a clear image of a company and its brands.

false

5) Advertising is the least used of the major promotion tools, although it has great potential for building consumer awareness and reference.

false

51) Supermarkets are located near residential areas and are open long hours, seven days a week. They carry a limited line of high-turnover goods.

false

53) Off-price retailers pay regular wholesale prices for their merchandise but maintain low prices by accepting lower margins and selling higher volume.

false

54) A discount store buys at less-than-regular wholesale prices and charges consumers less than retail.

false

59) Franchises constitute only a small portion of all retail sales in the United States.

false

72) Horizontal conflicts are conflicts between different levels of the same channel.

false

73) Vertical conflict occurs among firms at the same level of the channel.

false

75) A non-corporate VMS integrates successive stages of production and distribution under single ownership.

false

76) In a vertical marketing system, two or more companies at one level join together to take advantage of a new marketing opportunity.

false

97) Informative ads are used primarily in the growth stage of the product life cycle.

false

98) The communications process should start with mass media advertising in order to reach a large number of consumers.

false

98) The most important objective of reminder advertising is telling the market about a new product.

false

99) Persuasive advertising aims to build broad demand.

false

99) The four major communication functions are encoding, decoding, response, and noise.

false

114) Agencies bring an outside point of view to solving a company's problems, along with lots of experience from working with different clients and situations.

true

116) Standardization of advertising leads to lower advertising costs, greater global advertising coordination, and a more consistent worldwide image.

true

106) Multichannel marketing occurs when a single firm sets up two or more marketing channels to reach one or more customer segments.

true

100) While cuts in advertising may appear to do little short-term harm to sales, reducing ad spending may cause long-term damage to a brand's image and market share.

true

101) The aim of advertainment is to make ads so entertaining or useful that people want to watch them.

true

103) Good marketing communications can speed the demise of a poor product.

true

104) Branded entertainment involves making the brand an inseparable part of some other form of entertainment.

true

104) Retailers must work to ensure customers identify with their products. Differentiation and positioning are vital to communicating this message.

true