marketing final

Which of the following is a disadvantage of using social media tools for selling?

Social media tools can intimidate low-tech sales people or clients.

Which of the following statements about break-even analysis is most likely true?

It fails to consider customer value and the relationship between price and demand.

Which of the following is true of a conventional distribution channel?

It has each channel member acting as a separate business unit trying to maximize its own profits.

Which of the following is true of a vertical marketing system?

It has one channel member owning all the other channel members or has contracts with all other channel members.

What is the primary advantage of using television as an advertising medium?

It involves a low cost per exposure

Which of the following is a disadvantage of using a magazine as an advertising medium?

It involves high costs.

Which of the following is true of the product life cycle (PLC)?

It is generally difficult to forecast the sales level at each PLC stage.

Which of the following is a disadvantage of standardization of advertising messages?

It is less responsive to local market needs.

Which of the following is true of public relations?

It is not a sales-directed form of communication.

The team-based new product development approach saves times because departments work closely together in ________.

cross-functional teams

Which of the following is true of direct marketing?

It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.

Which of the following is true of personal selling?

It is the most expensive promotional tool for companies to utilize.

Which of the following is a shortcoming of advertising?

It only provides one-way communication with customers.

What is the primary disadvantage of outdoor advertising?

It provides little audience selectivity.

Which of the following is true of an intensive distribution strategy?

It strives to make products available where and when consumers want them.

Which statement is most likely true about the affordable method of setting an advertising budget?

It typically overlooks how promotion affects sales.

________ distribution gives producers good market coverage with more control and less cost than does intensive distribution.

Selective

When a firm varies the price of a product by the season, month, day, or even hour, without changing product features, it is using ________ pricing.

time-based

Conventions, trade shows, and sales contests are types of ________.

business promotions

Which term refers to a tool used by managers to supervise their salespeople?

call plan

Salespeople write up their completed activities in a(n) ________.

call report

Which of the following is true of RFID or "smart tag" technology?

"Smart shelves" can tell when it is time to reorder and can place orders automatically.

In which of the following cases is crowdsourcing used for new product development?

A company creates a forum where anyone can contribute new product ideas.

________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market.

A product life cycle

Which of the following statements is true of a product sales-force structure?

A product sales-force structure is characterized by specialization along product lines.

Which of the following is most likely true of a product in the maturity stage of the product life cycle?

A slowdown occurs in sales growth.

29) ________ are online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics. A) Blogs B) Catalogs C) Search engines D) Spam posts E) Viral messages

A) Blogs

________ refer to two or more outlets that are commonly owned and controlled. A) Corporate chains B) Factory stores C) Specialty stores D) Designer shops E) Warehouse clubs

A) Corporate chains

26) Which of the following is true of viral marketing? A) It is the digital version of word-of-mouth marketing. B) It refers to online marketing problems caused by technical glitches. C) It is another term for the unethical invasion of online privacy. D) It is an automated system that manages digital sales and marketing functions. E) It is a system that allows a supplier to access a customer's inventory levels online.

A) It is the digital version of word-of-mouth marketing.

________ have filled the ultralow-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) Designer shops E) Full-service retailers

A) Off-price retailers

36) Which of the following is most likely an advantage of social media marketing? A) Social media are targeted and personal. B) Social media campaign results are easily measured. C) Social networks are largely marketer controlled. D) Social media allow marketers to engage in multichannel sales. E) Social media campaigns are simply implemented and rarely backfire.

A) Social media are targeted and personal.

47) Which of the following is an example of inbound telemarketing? A) Sterrns Media advertises its services by sending letters to potential customers and prompting them to contact the firm through a toll-free number. B) Sterrns Media purchases customer information and later cold calls these customers to generate potential leads. C) Sterrns Media spends a lot of time and effort to train its sales force to call businesses and inform them about its B2B products. D) Sterrns Media utilizes interactive cable systems to enable customers to obtain product information by using their TV remotes. E) Sterrns Media airs advertising programs called infomercials to attract viewers and get them to order products from its Web site.

A) Sterrns Media advertises its services by sending letters to potential customers and prompting them to contact the firm through a toll-free number.

45) Which of the following is an advantage of printed catalogs? A) They drive online and mobile sales. B) They offer an almost unlimited amount of merchandise. C) They are produced in multiple presentation formats, including search and video. D) They result in reduced mailing costs. E) They allow real-time merchandising.

A) They drive online and mobile sales.

17) Which of the following is most likely true of branded community Web sites? A) They provide engaging content. B) They offer little information about the brand. C) They contain interactive selling features. D) They mostly contain static content. E) They contain heavy pop-up ads of a firm's products

A) They provide engaging content.

________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise. A) Warehouse clubs B) Department stores C) Convenience stores D) Specialty stores E) Superstores

A) Warehouse clubs

________ includes all the activities involved in selling goods and services to those buying them for resale or business use. A) Wholesaling B) Sole sourcing C) Franchising D) Crowdsourcing E) Showrooming

A) Wholesaling

43) The promotion of products and services through printed material with multiple pages that sell multiple products is referred to as ________ marketing. A) catalog B) viral C) telephone D) television E) e-mail

A) catalog

6) Which of the following is a traditional direct marketing tool? A) catalog B) e-mail C) blog D) online advertisement E) Web site

A) catalog

Which term refers to a giant specialty store with a very deep assortment of a particular product line? A) category killer B) convenience store C) factory outlet D) department store E) independent store

A) category killer

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) warehouse club C) superstore D) neighborhood shopping center E) regional shopping mall

A) community shopping center

20) Which of the following is the largest form of online advertising? A) contextual advertisements B) display advertisements C) digital catalogs D) community Web sites E) blog posts

A) contextual advertisements

3) Which of the following is the fastest-growing form of marketing? A) direct marketing B) undifferentiated marketing C) internal marketing D) mass marketing E) standardized marketing

A) direct marketing

42) Eric Dylan is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Eric targets a selective market of individuals who have recently donated to international charities by sending letters with charity information and donation instructions. Eric uses ________ in this scenario. A) direct-mail marketing B) mass marketing C) telephone marketing D) digital marketing E) kiosk marketing

A) direct-mail marketing

50) Which of the following direct marketing forms includes infomercials? A) direct-response television marketing B) outbound telephone marketing C) print-catalog marketing D) direct-mail marketing E) face-to-face marketing

A) direct-response television marketing

Rhonda recently entered into a contractual agreement with StellarCutz, a national chain of affordable, walk-in hair salons. Under the agreement, Rhonda uses the StellarCutz trade name and receives support from StellarCutz in terms of business methods and processes. Rhonda paid a start-up fee to StellarCutz and will pay annual licensing fees for the use of the StellarCutz brand. Which of the following best describes Rhonda's business? A) franchise B) factory outlet C) superstore D) acquisition E) joint agreement

A) franchise

24) Which of the following is most likely a consequence of permission-based e-mail marketing? A) higher return rates B) excessive spamming C) increased consumer frustration D) lower consumer response rates E) reduced consumer interaction

A) higher return rates

55) Green Gardens sells gardening and landscaping goods and equipment. The marketing department places an unmanned machine in the store with touchscreen technology to provide product information. Consumers can use this machine to learn about the company's products and services. The company's marketing form is best referred to as ________ marketing. A) kiosk B) mobile C) telephone D) interactive E) personalized

A) kiosk

Which of the following marketing forms enables consumers to learn about products by scanning Quick Response codes? A) mobile marketing B) interactive TV C) indirect marketing D) inbound telephone marketing E) direct-response television marketing

A) mobile marketing

34) Glenda is searching airline schedules on HolApp, a mobile Web application. While browsing the application, a banner appears on the mobile screen showcasing offers and discounts on air tickets. The banner is best referred to as a(n) ________. A) online display advertisement B) contextual advertisement C) infomercial D) phishing scam E) advertorial

A) online display advertisement

Retail convergence most likely leads to ________. A) reduced differentiation B) reduced competition C) increased sales D) increased profit margins E) reduced advertising costs

A) reduced differentiation

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?

Abundon

Which of the following is true of advertising in the new marketing communications model?

Advertisers are increasingly shifting toward digital media.

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising

Which of the following is most likely a difference between advertising and sales promotions?

Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately.

Setting a price for products that must be used along with a main product is known as ________ pricing.

captive-product

Specialty stores are characterized by ________. A) the sale of convenience and staple items B) narrow product lines with deep assortments C) a wide range of products and categories D) low prices on a wide range of goods E) routinely purchased food products and services

B) narrow product lines with deep assortments

________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Sole sourcing B) Retailing C) Manufacturing D) Procurement E) Warehousing

B

10) Which of the following is most likely true about the digital age with regards to marketing? A) The number of businesses connecting people over digital networks is in decline. B) Digital networks allow marketers many ways to build customer relationships. C) The Internet has had little impact on the ways consumers purchase products. D) Most firms are shifting back to traditional marketing forms to build customer value. E) Online-only marketing is more commonly used by firms than multichannel marketing.

B) Digital networks allow marketers many ways to build customer relationships

________ refer to retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume. A) Convenience stores B) Discount stores C) Full-service retailers D) Designer shops E) Specialty stores

B) Discount stores

46) What is telemarketing? A) It is the process of promoting products through 30-minute-long infomercials. B) It is a form of marketing that uses the telephone to sell directly to businesses and consumers. C) It is the process of marketing products and services using direct-response television advertising. D) It is a marketing system where product information is provided through unmanned ordering machines. E) It is the process of selling products through affiliate networks and social media sites.

B) It is a form of marketing that uses the telephone to sell directly to businesses and consumers.

Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________. A) wholesaling broker B) merchant wholesaler C) agent wholesaler D) manufacturer's agent E) manufacturer's representative

B) merchant wholesaler

60) Which of the following is true of the Privacy Promise launched by the Direct Marketing Association? A) It forbids all DMA members from spending excessively on digital advertising. B) It requires all DMA members to notify customers when any personal information is sold to others. C) It recommends that DMA members help each other by sharing customer psychographic data. D) It forbids DMA members from sending e-mail, mail, or phone offers to any customer. E) It encourages DMA members to create more digital content that is tailored for children under age 13.

B) It requires all DMA members to notify customers when any personal information is sold to others.

37) ________ marketing features marketing messages, promotions, and other content delivered to on-the-go consumers through their portable electronic devices. A) Direct-mail B) Mobile C) Mass D) Viral E) Kiosk

B) Mobile

9) In which of the following cases is a firm employing multichannel marketing? A) E-tailers such as Hammon.com market their products through a strong online presence. B) Wingate Retail sells its products through e-tailers and hundreds of physical superstores. C) Russel Stores' sales operations are based on heavy outbound telephone marketing. D) Lues Wholesalers markets its products to retailers through personal selling. E) Local convenience stores promote products through word-of-mouth marketing.

B) Wingate Retail sells its products through e-tailers and hundreds of physical superstores.

A ________ brings buyers and sellers together and assists in negotiations. A) distributor B) broker C) retailer D) manufacturer E) supplier

B) broker

22) Every time a search is made using keywords related to construction, search engines display text-based advertisements and links to Regan Builders, a construction firm. The marketing tool used by Regan Builders is best referred to as a ________. A) display advertisement B) contextual advertisement C) digital catalog D) community Web site E) Web blog

B) contextual advertisement

Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________. A) supermarket B) department store C) specialty store D) pop-up store E) category killer

B) department store

The process in which printed catalogs, brochures, samples, and DVDs are distributed to customers using highly selective mailing lists is known as ________. A) mass marketing B) direct-mail marketing C) telemarketing D) internal marketing E) kiosk marketing

B) direct-mail marketing

When compared to merchant wholesalers, brokers and agents ________. A) perform greater functions B) do not take title to goods C) deal only in services and not products D) do not engage in any negotiation of wholesale deals E) rarely specialize in one product category or customer type

B) do not take title to goods

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________. A) category killer B) factory outlet C) specialty store D) superstore E) warehouse club

B) factory outlet

Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________. A) category killer B) factory outlet C) specialty store D) superstore E) power center

B) factory outlet

Allstocks.com is an online retailer that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices. Allstocks then charges customers less than retail. Allstocks is an example of a(n) ________. A) specialty retailer B) independent off-price retailer C) departmental retailer D) full-service retailer E) category killer

B) independent off-price retailer

51) A 30-minute or longer advertising program on television that markets a single product is called a(n) ________. A) phishing program B) infomercial C) podcast D) catalog E) spambot

B) infomercial

52) Haynes, a manufacturer of consumer electronics, created a 30-minute program describing the various ways in which its products could be used and aired the program on television with a toll-free number that interested consumers could call. In this case, Haynes' program is referred to as a(n) ________. A) virtual world B) infomercial C) viral video D) podcast E) e-catalog

B) infomercial

According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________. A) relocating to low-rent, low-tax areas B) investing in information technology systems C) eliminating the need for brokers and agents D) increasing customer service responsibilities E) reducing promotional and personal selling activities

B) investing in information technology systems

A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, dining establishments, and a movie theater. A) regional shopping center B) lifestyle center C) community shopping center D) power center E) warehouse club

B) lifestyle center

C & G Retail, a chain of local supermarkets, procures all its goods directly from the producers' factories. This type of wholesaling is usually done in ________. A) corporate broker branches B) manufacturers' offices C) value-retail centers D) warehouse clubs E) factory outlet malls

B) manufacturers' offices

57) Fox Scully received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates. The e-mail asked customers to provide their address, date of birth, Social Security number, and current mortgage information in order to receive a free loan quote. Suspicious of the offer, Fox researched the company and discovered that the e-mail was fraudulent. This is an example of ________. A) cold calling B) phishing C) crowdsourcing D) data mining E) viral marketing

B) phishing

59) The Children's Online Privacy Protection Act requires online operators targeting children to ________. A) educate children about digital technologies B) post privacy policies on their sites C) collect and store the personal information of parents of these children D) collect personal information from children under age 13 for security purposes E) avoid sending e-mails to the parents of children whom they target

B) post privacy policies on their sites

Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost? A) bulk breaking B) selling and promoting C) buying and assortment building D) warehousing E) risk bearing

B) selling and promoting

A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. A) pop-up store B) shopping center C) warehouse D) category killer E) convenience store

B) shopping center

25) Which of the following would a firm most likely use to share video content? A) corporate intranets B) social media sites C) viral blogs D) media portals E) digital kiosks

B) social media sites

Which type of retailer typically carries deep product assortments of narrow product lines? A) self-service retailers B) specialty stores C) warehouse clubs D) discount stores E) factory outlets

B) specialty stores

27) Clenzo is a company that provides house cleaning services in major urban and suburban areas. Marketers at Clenzo developed a short, humorous video promoting the company's services and hope that customers who see the video will be so entertained that they will pass the video on to their friends and colleagues. The marketers at Clenzo are using techniques to facilitate ________. A) direct-mail marketing B) viral marketing C) catalog marketing D) contextual advertising E) display advertising

B) viral marketing

Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer? A) when consumers need warranty information about shopping goods B) when customers are willing to conduct their own locate-compare-select process C) when the store offers luxury products at highly affordable prices D) when customers are looking for a narrow product line with a deep assortment E) when the store has been converted into a designer shop from a department store

B) when customers are willing to conduct their own locate-compare-select process

________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives.

Business analysis

Bateman Gray Motors

exclusive dealing

________ represent buyers or sellers on a more permanent basis than brokers. A) Distributors B) Franchisees C) Agents D) Retailers E) Manufacturers

C) Agents

1) ________ consists of connecting directly with carefully targeted consumers, often on a one-to-one, interactive basis. A) Undifferentiated marketing B) Mass marketing C) Direct marketing D) Internal marketing E) Standardized marketing

C) Direct marketing

54) Which of the following is true with regard to kiosk marketing? A) It can be used for selling products, but not services. B) It cannot be used to order goods that are physically unavailable in a store. C) It can be used to provide customized product recommendations. D) It can be used only to generate printed catalogs for small purchases. E) It can be used to circulate viral videos and infomercials.

C) It can be used to provide customized product recommendations.

Jacob Kendler works in a wholesale business which specializes in industrial goods needed in automobile industries. Jacob's job involves locating and contacting potential buyers and sellers and facilitating the negotiation process. Which of the following, if true, would strengthen the argument that Jacob works as an agent and not as a merchant wholesaler? A) Jacob runs an independently-owned business. B) Jacob is an employee of an organization producing automobiles. C) Jacob represents his company but is not liable for any damaged or low-quality goods. D) Jacob works in a highly specialized market and does not venture into other product categories. E) Jacob provides a full set of services ranging from locating sellers to delivering goods.

C) Jacob represents his company but is not liable for any damaged or low-quality goods.

28) Which of the following is a primary disadvantage of viral marketing? A) The costs of viral marketing are generally too high for most companies. B) The brand associated with the viral message is usually forgotten. C) Marketers have little control over who receives a viral message. D) Viral messages are less likely to be viewed than other types of online promotions. E) Viral messages are blocked by most search engines.

C) Marketers have little control over who receives a viral message.

21) ________ might appear anywhere on an Internet user's screen when a user is browsing through an article and are often related to the information being viewed. A) Viral advertisements B) Social media sites C) Online display ads D) Digital catalogs E) Printed catalogs

C) Online display ads

Flax is a chain of stores that carries several product lines including clothing, home furnishings, and household appliances. Each line is operated as a separate department, and employees are available to assist and advise customers in every phase of the shopping process. Flax is most likely a ________. A) self-service retailer B) category killer C) full-service retailer D) supermarket E) pop-up store

C) full-service retailer

Which of the following statements is true of shopping centers? A) Most shopping centers function at the regional level rather than at the neighborhood level. B) Shopping centers typically contain only those stores that target a niche market segment of high income groups. C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit. D) Shopping centers usually contain exclusive brands and specialty stores rather than convenience stores or department stores. E) Shopping centers are huge superstores that offer a deep assortment of a particular product line.

C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

30) Which of the following is a drawback of using blogs as a marketing medium? A) Advertising on a blog is typically very expensive. B) It is difficult to use blogs to reach highly targeted audiences. C) The content of a blog is difficult to control. D) A company cannot have more than one blog. E) Blogs do not provide the kind of personalized medium that today's marketers want.

C) The content of a blog is difficult to control.

4) How has the Internet most likely affected direct marketing? A) The time taken by direct marketers to reach customer segments has increased. B) The role of technology in direct marketing has become less intense. C) The expenditures of marketers on direct marketing have increased. D) The growth of digital sales has seen a significant downturn. E) The number of mass marketing forms has expanded.

C) The expenditures of marketers on direct marketing have increased.

35) Which aspect of niche online social networks makes the medium most appealing to marketers? A) They help marketers target the best undifferentiated market segment. B) They are used by a majority of Internet users in the U.S. and overseas. C) They cater to the needs of small communities of like-minded people. D) They guide organizations on how to set up social media networks. E) They allow marketers to control the conversations on the network.

C) They cater to the needs of small communities of like-minded people.

A convenience store ________. A) markets to segments comprised mostly of white-collar workers B) stocks narrow product lines that have wide, deep assortments C) carries a limited line of high-turnover goods for consumer self-service D) involves high operation costs due to full-service customer assistance E) is a multi-channel food and discount retailer that targets niche markets

C) carries a limited line of high-turnover goods for consumer self-service

44) Bradley Springs, a chain of superstores, promotes its business by handing out printed materials which contain lists and descriptions of an assortment of its products. In this case, the company's promotional strategy is referred to as ________. A) e-mail marketing B) telemarketing C) catalog marketing D) kiosk marketing E) viral marketing

C) catalog marketing

Pawz is a larger retailer that specializes in pet products and services such as pet food, accessories, grooming, toys, and medical treatment. Pawz also has animals available for adoption at all of its many stores located across the nation. Pawz is most likely an example of a ________. A) convenience store B) pop-up store C) category killer D) lifestyle center E) supermarket

C) category killer

14) For most companies, the first step in conducting online marketing is to ________. A) place an ad online B) send e-mails C) create a Web site D) create a social networking site E) place search-related ads

C) create a Web site

16) Which of the following is the primary purpose of branded community Web sites? A) displaying digital catalogues B) providing detailed descriptions of products C) creating customer-product engagement D) selling products and services E) sending direct mails to consumers

C) creating customer-product engagement

12) Which of the following is a transaction site? A) Wikipedia B) Yahoo C) eBay D) IMDB E) Facebook

C) eBay

Which contractual system is distinguished by the fact that it is normally based on some unique product or service? A) voluntary chain B) retailer cooperative C) franchise D) corporate chain E) warehouse club

C) franchise

McPherson's, an ice cream retailer, recently entered into an agreement that allows independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. Which type of contractual retail association is described in the above example? A) corporate chain B) voluntary chain C) franchise organization D) independent retailer E) retailer cooperative

C) franchise organization

Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________. A) self-service retailer B) off-price retailer C) full-service retailer D) supermarket E) convenience store

C) full-service retailer

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices? A) self-service stores B) convenience stores C) full-service stores D) discount stores E) off-price stores

C) full-service stores

The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Toby's typically charge higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) franchise retailing

C) high-low pricing

58) Which of the following is generally regarded as the toughest issue of public policy and ethics confronting the direct marketing industry? A) customization of search results B) unwanted e-mail spam C) invasion of consumer privacy D) increasing costs of browsing E) restrictions on digital offers and discounts

C) invasion of consumer privacy

38) Which of the following would most likely provide on-the-go product information, instant access to price comparisons and customer reviews, and instant digital coupons? A) indirect marketing B) television marketing C) mobile marketing D) inbound telephone marketing E) direct-mail marketing

C) mobile marketing

Barry's is a chain of retail stores that stocks a large variety of goods and practices high-low pricing. This means that Barry's is likely to ________. A) have low volume and low markups B) charge low prices constantly C) offer numerous sales or discounts D) compete on the basis of price rather than product or service quality E) use predatory pricing to eliminate competition

C) offer numerous sales or discounts

Power centers are characterized by the ________. A) lack of an anchor store B) sale of exclusive brands only C) provision of individual entrances to each store D) provision for nonretail activities, such as playgrounds E) absence of any pricing strategies for differentiation

C) provision of individual entrances to each store

What is most likely the first major marketing decision that a retailer must take? A) positioning B) targeting C) segmentation D) differentiation E) promoting

C) segmentation

GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n) ________. A) department store B) supermarket C) specialty store D) discount store E) off-price retailer

C) specialty store

Which of the following is an impact of the Great Recession on retailing trends? A) economic shift toward higher prices B) lower costs for retailers C) tighter consumer spending patterns D) longer retail life cycles E) prohibition on new retail forms

C) tighter consumer spending patterns

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

C) transportation

48) Which of the following has been limited in recent years by the implementation of the National Do Not Call Registry? A) calls by nonprofit groups B) business-to-business telemarketing C) unsolicited outbound telemarketing by businesses D) inbound telephone marketing E) "opt-in" calling systems

C) unsolicited outbound telemarketing by businesses

13) The growth of the Internet caused many traditional companies to ________ in response to customer demands and a changing marketplace. A) use traditional direct marketing forms B) adopt direct-mail marketing C) use multichannel marketing D) develop retail transaction sites E) expand their outside sales forces

C) use multichannel marketing

Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers? A) showrooming B) assortment building C) warehousing D) financing E) transporting

C) warehousing

Which of the following examples represents a product sales-force structure?

Cartlon Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range.

________ advertising would most likely result in advertising wars between competitors.

Comparative

Which of the following is an effect of the advancement of technology on marketing?

Consumers rely less on marketer-supplied information than in the past.

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.

Cost-based

________ are certificates that save buyers money while they purchase specified products.

Coupons

________ uses buyers' perceptions of what a product is worth as the key to pricing.

Customer value-based pricing

Which of the following statements is most likely true about the new product development process?

Customers, competitors, and suppliers are major sources of new product ideas.

2) Which of the following statements is most likely true about direct marketing? A) Direct marketing is used to sell goods to an undifferentiated market segment. B) Direct marketing is an inconvenient and lengthy process for most buyers. C) Direct marketing models remain unaffected by the rapid growth of technologies. D) Direct marketing provides opportunities for building customer engagement. E) Direct marketing is rarely used by companies as a supplementary channel.

D) Direct marketing provides opportunities for building customer engagement

23) Which of the following is most likely true about e-mail marketing? A) It cannot be personalized to meet individual consumers. B) It is a traditional form of direct marketing. C) It is restricted to the use of personal computers. D) It is used by marketers to send highly targeted messages. E) It is always non-intrusive in nature due to spam filters.

D) It is used by marketers to send highly targeted messages.

________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full-service and limited-service. A) Brokers B) Retailers C) Agent wholesalers D) Merchant wholesalers E) Manufacturers' agents

D) Merchant wholesalers

Which of the following statements is true of retailing? A) All retail stores are full-service retail stores. B) A department store has a narrow product line with a deep assortment. C) The largest type of retail outlet is a supermarket. D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed. E) A feature common to all types of retail stores is the use of the everyday low pricing strategy.

D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.

Which of the following is true about trends in wholesaling? A) New laws prevent wholesalers from having their own retailing operations. B) Value-added customer relationships have been replaced by control systems. C) Merchant wholesalers are decreasing in number and relevance. D) The demand for lower prices and higher quality has increased. E) Bulk breaking is increasingly popular and necessary.

D) The demand for lower prices and higher quality has increased.

5) Which of the following is most likely true about direct and digital marketing? A) They make it increasingly difficult for sellers to adjust their prices. B) They provide sellers a high-cost alternative for reaching their markets. C) They have become less dependent on social media and the Internet. D) They provide buyers with anytime, anywhere access to products. E) They reduce the number of interaction options between buyers and sellers.

D) They provide buyers with anytime, anywhere access to products.

Wholesalers most likely discourage less-profitable customers by ________. A) increasing product promotions B) carrying exclusive product lines C) overseeing inventory control systems D) adding service charges to small purchase orders E) requiring smaller orders to lower transportation costs

D) adding service charges to small purchase orders

For a retailer to be able to differentiate from competitors and match target shoppers' expectations, the retailer's product assortment should most likely be ________. A) identical to the product assortment offered by competitors B) devoid of any blockbuster goods since they distract most consumers C) targeted at all consumers in the global market irrespective of local needs D) constituted by national brands on which the store holds exclusive rights E) devoid of any seconds, overstocks, and closeouts that damage the retailer's image

D) constituted by national brands on which the store holds exclusive rights

8) Which of the following is the fastest-growing form of direct marketing? A) catalog marketing B) kiosk marketing C) direct-mail marketing D) digital marketing E) telephone marketing

D) digital marketing

Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular postal address? A) kiosk marketing B) direct digital marketing C) mass marketing D) direct-mail marketing E) telephone marketing

D) direct-mail marketing

11) Amazon.com and Expedia.com are best described as ________ that sell products and services directly to final buyers via the Internet. A) search engines B) content sites C) transaction sites D) e-tailers E) iTV sites

D) e-tailers

Venture Zone, a hiking and climbing equipment retailer, has a rock climbing wall inside the store so that consumers can test products prior to purchase. Venture Zone most likely differentiates itself from its competitors through ________. A) everyday low pricing B) predatory pricing C) self-service retailing D) experiential retailing E) franchising

D) experiential retailing

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A) self-service B) full-service C) off-price D) limited-service E) convenience

D) limited-service

Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________. A) power centers B) franchises C) shopping centers D) pop-up stores E) category killers

D) pop-up stores

Which type of store is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services? A) discount stores B) specialty stores C) factory outlets D) superstores E) off-price outlets

D) superstores

Which of the following is a type of off-price retailer? A) specialty store B) full-service retailer C) discount store D) warehouse club E) supermarket

D) warehouse club

19) Which of the following is a form of online advertising? A) direct mail B) rich media ad C) toll-free number D) search-related ad E) printed catalog

D)search-related ad

________ pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.

Deceptive

________ refers to using point-of-purchase promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions. A) Internal marketing B) Sole sourcing C) Warehousing D) Test marketing E) Shopper marketing

E

31) Which of the following is true of marketing through blogs? A) Starting and maintaining blogs is expensive. B) Blogs are a form of traditional direct marketing. C) Blogs are typically used to provide automated responses to consumer conversations. D) Companies should not monitor blogs if they want to reach customers effectively. E) Blogs are an inexpensive yet personal way to connect with consumers.

E) Blogs are an inexpensive yet personal way to connect with customers

53) ________ allows consumers to gain additional information about a product or purchase a product through the use of a remote control. A) Direct-mail marketing B) Telemarketing C) Podcasting D) Data mining E) Interactive TV

E) Interactive TV

Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts-occasionally including expensive gadgets and jewelry. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true? A) Posco fails to differentiate itself from Campbell through the services mix. B) Posco's product assortment helps differentiate it from Campbell. C) Both Campbell and Posco fail to identify the needs and wants of target markets. D) Campbell has not been able to differentiate itself on the basis of product assortment. E) Posco better utilizes the services mix to differentiate itself from Campbell.

E) Posco better utilizes the services mix to differentiate itself from Campbell.

49) Which of the following is a disadvantage of using social media for marketing? A) They are impersonal. B) They primarily provide static content. C) They do not provide information in a timely manner. D) They provide lower returns than television. E) They are largely user controlled.

E) They are largely user controlled.

32) Elise Philips, a leading fashion designer, connects with her followers through a strong online presence, promoting her brand and discussing fashion tips through articles and videos on her personal fan page. In this case, which of the following marketing forms does Elise use? A) direct e-mail B) a catalog C) a search engine D) a spambot E) a blog

E) a blog

7) Which of the following is a direct digital marketing tool? A) printed catalog B) direct mail C) telephone D) television E) blog

E) blog

56) Which of the following is a type of identity theft that uses deceptive e-mails and fraudulent Web sites to fool consumers into revealing their personal data? A) cold calling B) crowdcasting C) viral marketing D) phishing E) crowdsourcing

E) crowdsourcing

Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling? A) buying and assortment building B) selling and promoting C) risk bearing services D) market information services E) management services and advice

E) management services and advice

15) Which of the following is an online tool designed to interact with customers to move them closer to a direct purchase or other marketing outcome? A) direct mail B) infomercial C) printed catalogue D) branded community Web site E) marketing Web site

E) marketing Web site

18) Corell Inc. has an online tool that offers a wide variety of Corell shoes for direct purchase. The tool even allows customers to individually design their shoes. Which of the following has Corell most likely used? A) phishing site B) online forum C) Web blog D) community Web site E) marketing Web site

E) marketing Web site

Checking out products in traditional stores and purchasing them online is referred to as ________. A) warehousing B) wholesaling C) retailing D) franchising E) showrooming

E) showrooming

33) Unsolicited and unwanted commercial e-mail is referred to as ________. A) an infomercial B) an advertorial C) viral marketing D) social media E) spam

E) spam

JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario? A) the shift toward self-service retailing B) the decline of superstores and megastores C) the decline of the voluntary chain distribution method D) the rise of franchise organizations and joint partnerships E) the blurring of distinctions between retailers and wholesalers

E) the blurring of distinctions between retailers and wholesalers

Which term refers to a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising? A) factory outlet mall B) retailer cooperative C) corporate chain D) warehouse club E) voluntary chain

E) voluntary chain

Department stores are most likely characterized by ________. A) narrow product lines B) specialty goods and services C) predatory pricing strategies D) deep assortments of luxury brands E) wide varieties of product lines

E) wide varieties of product lines

________ pricing involves charging a constant low price with few or no temporary price discounts.

Everyday low

________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.

Exclusive

________ costs are also known as overhead.

Fixed

________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its products.

Full-line forcing

Which of the following statements is most likely true about the product life cycle?

Growth is a period of rapid market acceptance and increasing profits.

Which statement is most likely true about idea generation in the new product development process?

Idea generation is usually followed by procedures that reduce the total number of ideas.

________ advertising is used heavily when introducing a new product category.

Informative

________ distribution is a product distribution strategy that involves stocking a product in as many outlets as possible.

Intensive

Which of the following statements is most likely true of team selling?

It can unearth problems and provide solutions that no individual salesperson could.

Which of the following is true of a territorial sales-force structure?

It clearly defines each salesperson's job and establishes accountability.

Which of the following is a characteristic of an inside sales force?

It conducts business from an office via telephone.

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?

It does not allow other producers to sell to that dealer.

Which of the following is true of a direct marketing channel?

It does not use any intermediaries.

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.

Marketing channels

________ involves combining two or more systems of transportation to move products.

Multimodal transportation

Which of the following is a disadvantage of a team-based approach to new product development?

Organizational confusion and tension are likely to affect the process.

Which of the following examples represents a territorial sales-force structure?

Oriental Meals, producers of precooked Chinese meals, markets its products throughout the country using a network of regional sales offices.

Which of the following is true of the growth stage of the product life cycle?

Sales start climbing quickly.

________ are offers of a trial amount of a product.

Samples

A firm that uses direct marketing would most likely sell its products through ________.

the company Web site

________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.

Predatory

________ is the only element in the marketing mix that produces revenue.

Price

________ refers to the amount of money charged for a product or service.

Price

In a sequential new product development process, which of the following is true of the product development step?

Product development is usually followed by test marketing.

________ advertising primarily maintains brand relationships and is important for mature products.

Reminder

Which of the following is true about the introduction stage of a new product?

Sales growth tends to be slow.

Sales promotions targeted at ________ are called trade promotions.

Sales promotions targeted at ________ are called trade promotions.

________ are the standards stating the amount salespersons should sell and how sales should be divided among the company's products.

Sales quotas

Which statement is most likely true about the affordable method of setting an advertising budget?

Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues.

Which of the following is a difference between storage warehouses and distribution centers?

Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.

________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking.

Target return

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings.

Test marketing

Which of the following is a disadvantage of using online, mobile, and social media for advertising?

The audience controls ad exposure.

Which of the following is an advantage of exclusive dealing between a seller and a dealer?

The dealer obtains a steady source of supply and more support from the seller.

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?

The market for the product is highly price sensitive.

Which of the following is most likely true of a sales force?

The performance difference between an average salesperson and a top salesperson is generally substantial.

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?

The product's quality and image support its high price.

Which of the following is true of consumers in the new marketing communications model?

They are better equipped to find product and brand information on their own.

Which of the following is true of marketing strategies that are being developed in the new marketing communications model?

They are more targeted, social, and engaging.

Which of the following is most likely true about salespeople in a field sales force?

They build relationships with customers by traveling to see them.

Which of the following is true of downstream channels in a company's supply chain?

They form an intermediary link between the company and its customers.

Which of the following statements is true of consumer promotions?

They include a wide range of tools like samples, coupons, and refunds.

a firm providing interesting information about a product to the news media

They represent a company to its customers by communicating and selling.

How do firms that use captive-product pricing make up for the low prices of their main products?

They set high markups on the captive products.

________ costs refer to the sum of the fixed and variable costs for any given level of production.

Total

________ are sales promotion tools used to generate new business leads, stimulate purchases, educate customers, and motivate salespeople.

Trade shows

Which of the following is an advantage of a territorial sales-force structure?

Travel expenses are relatively small.

Which of the following is an example of a horizontal conflict in a distribution channel?

a Ford car dealer complaining that another Ford dealer is underpricing the same models

Which of the following is an example of branded entertainment?

a company placing its product in a movie scene

Which of the following is an example of a combination of sales promotions and direct marketing?

a company sending an e-mail to a customer about a discount on a product during a holiday season

Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict?

a conflict between Accline Cars and its dealers

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?

a conflict between two Greystone Motors car dealerships

Pastaliano

a contractual vertical marketing system

A product concept is ________.

a detailed version of a product idea stated in meaningful consumer terms

Crowbar Records

a direct marketing channel

In which of the following situations is a producer guaranteed full control over product sales?

a direct marketing channel

Which of the following is an example of a firm utilizing public relations as a promotion tool?

a firm providing interesting information about a product to the news media

Which of the following would be considered an upstream partner in a company's supply chain?

a firm that provides technical expertise in the production of a product

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?

business analysis

Remington Motors releases a new line of hybrid electric vehicles called Electra. The line promises superior mileage and excellent horsepower in an environmentally friendly automobile. Remington decides to use advertising as the promotional tool for the car's launch. Which of the following would qualify as an advertisement for Electra?

a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed"

Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers?

a push strategy

Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest?

a style

Which of the following is most likely an example of a business promotion tool?

a trade fair showcasing a new audio system developed by an electronics firm

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members.

administered vertical

Sonic Shack

administered vertical marketing system

The aim of ________ is to make ads so engaging or useful that people want to watch them.

advertainment

Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee using?

advertising specialties

Which mode of transportation is best for carrying perishable goods to distant markets?

air carriers

Millie Foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. In this case, the promotion tool used by the company is referred to as a(n) ________.

allowance

Which of the following is a promotion tool used for trade promotions?

allowances

In which step of the selling process does a salesperson most likely meet a customer for the first time?

approach

Sheldon Parks works as a salesperson in a large company that sells vending machines and beverages like coffee, tea, and hot chocolate. He meets Rosa Thoms, a potential client who heads the administration department of a large MNC, and speaks to her at length to determine the kind of vending machine and beverages her company would need. After understanding the specifications, he provides her team of employees with samples to obtain their feedback. At which step of the selling process is Sheldon in the above scenario?

approach

A value-based pricing strategy most likely begins with ________.

assessing customer needs

Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing.

basing-point

Mintel Agro

both Yellowstar Trading and Stroos

An innovation management system would most likely be used by ________.

brand managers to collect, review, and evaluate new product ideas

Which of the following costs is most likely associated with commercialization?

building or renting a manufacturing facility

When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer sends the customer a check.

cash rebate

Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal?

change the packaging of the toy

In which of the following steps of the selling process does a salesperson ask a buyer for an order?

closing

Introducing a new product into the market is called ________.

commercialization

Which of the following is an external factor that affects pricing decisions?

competition

A ________ sales-force structure combines several types of sales force organizations.

complex

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.

concept testing

Which of the following sets the upper limit for a product's pricing?

consumer perceptions of value

A(n) ________ marketing system is a marketing system in which independent firms at different levels of production and distribution join together through binding agreements.

contractual vertical

Which type of channel arrangement does a franchise organization most likely follow?

contractual vertical marketing system

Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate?

controlled test markets

A(n) ________ marketing system combines successive stages of production and distribution under single ownership, where channel leadership is established through common ownership.

corporate vertical

Which of the following would most likely trigger a price increase?

cost inflation

Value-based pricing is the reverse process of ________ pricing.

cost-based

A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing.

cost-plus

Producers use marketing intermediaries because they ________.

create greater efficiency in making goods available to target markets

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas.

crowdsourcing

When an end user's problems and experiences define a new product, the approach is called ________.

customer-centered new product development

Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing.

customer-segment

A product has hit the ________ stage when sales plunge to zero, or they drop to a low level where they continue for many years.

decline

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.

decline

Which of the following is a function of an integrated marketing communications system?

delivering a consistent message on the product to each brand contact

The relationship between the price charged for a product and the resulting demand level can be shown in a ________.

demand curve

Vertical conflicts in distribution channels are conflicts that occur between ________.

different levels of the same channel

A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________.

direct marketing

Dazed is a bar which mostly plays trance music and has a dedicated day every week for local bands to perform. To build strong customer relations, Dazed sends text messages to customers, telling them about happy hours, bands playing that week, dedicated genre nights, and other activities. Which of the following promotion mix tools does Dazed employ to reach target customers in this scenario?

direct marketing

In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

direct marketing

Which of the following creates the shortest distribution channel between a producer and a customer?

direct marketing

Erudite

disintermediation

A ________ is highly automated and designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.

distribution center

Chef Brown's Health Food Store sells nutritional, energy-producing foods. Product prices are adjusted frequently to meet the needs of individual customers and situations. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing.

dynamic

Internal sources of new product ideas for a company include its ________.

employees

AirNetwork, a telecommunications company, sponsors a rock concert by a famous band in order to further its brand visibility. This is an example of a(n) ________.

event marketing program

The Memphis Rock chain of restaurants has a deal with WestEnd Cola, according to which it will serve only WestEnd sodas at its restaurants. What strategy has most likely been adopted by WestEnd Cola?

exclusive dealing

When a seller requires that only certain dealers carry its products, its strategy is known as ________.

exclusive distribution

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n) ________.

fad

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?

find new market segments for the brand

Rent, electricity, and executive salaries that do not vary with production level are referred to as ________ costs.

fixed

ABM Connect is one of the largest Internet service providers in India. The company's salespersons regularly contact buyers to make sure that the installation and services have been properly executed. Which of the following steps of the selling process does this scenario depict?

follow-up

In which of the following steps of the selling process does a salesperson make sure that there is proper installation and support after a buyer receives the initial order?

follow-up

What is the last step in the selling process?

follow-up

PinWheel

full-line forcing

In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit.

growth

In which of the following steps of the selling process does a salesperson seek out, clarify, and overcome any customer disapproval to buying?

handling objections

Consumers rely less on price to judge the quality of a product when they ________.

have prior experience with the product

ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image?

holding a press conference to explain the remedial steps that ColaBlue has taken

GreatWords is a book retailer. Due to the increasing demand for audiobooks, the firm decides to sell audiobooks in its stores. GreatWords signs a deal with Carpem, a leading producer of educational audiobooks. According to the deal, GreatWords will sell only Carpem's audio titles in its stores, while Carpem will not sell its books through other retailer stores. GreatWords profits from Carpem's popularity while Carpem, in return, enjoys better sales. This is most likely an example of a(n) ________ marketing system.

horizontal

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________.

horizontal marketing system

TruMart

horizontal marketing system

The new product development process usually starts with ________.

idea generation

Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt.

idea screening

Which of the following steps of the new product development process would most likely use an R-W-W framework?

idea screening

In supply chain management, moving products and materials from suppliers to the factory is known as ________ logistics.

inbound

When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________.

inelastic

Inglast, a chocolate producer, is faced with a class action suit when customers find pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used?

informative

The objective of ________ advertising is to build primary demand.

informative

Zephyr Inc., an electronics manufacturer, wants to enter the commercial tracking device market with its latest product, FindIt. Unlike other tracking devices, FindIt is very small and relatively cheap, but it can be used only within small areas as it has a low detection-range. Which type of advertising would be best for FindIt?

informative advertising

Which technique is used by firms to deliver a unified and consistent image about their organizations and brands to consumers?

integrated marketing communications

Which of the following is an economic factor that affects the pricing decisions of a company?

interest rates

Which of the following is an internal source of new product ideas for a company?

intrapreneurial programs

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

introduction

In a logistics system, minimizing distribution costs most likely involves ________.

large shipping lots

Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the VitaZing ad?

lifestyle

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called?

location-based pricing

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________.

manufacturer-sponsored retailer franchise system

If a company assigns individual teams of salespeople to big retail customers, it most likely has a(n) ________ sales-force structure.

market

Sandy Bayes works at Hilton Brews as a senior sales executive and manages all the key national accounts of his company. His job involves ensuring that key customers receive the best service from Hilton Brews. Sandy is also responsible for acquiring new customers with high consumption needs on a nation-wide basis. Despite his lack of product specialization in all the product lines, Sandy is hired for this position because of his excellent interpersonal skills. Hilton Brews has most likely adopted a ________ sales-force structure.

market

Lemony Inc. sells its popular bottled lemonade-the company's only product-in various geographic locations through tie-ups and agreements with retailers. Each location is represented by two salespersons, one of whom serves current customers while the other finds new ones. Which of the following sales-force structures has most likely been combined to form the complex sales-force structure at Lemony Inc.?

market and territorial

In which of the following structures does a company organize its sales force along client or industry lines?

market sales-force structure

Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________.

market-penetration pricing

The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________.

market-penetration pricing

A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.

market-skimming pricing

In a sequential new product development process, concept testing is most likely to be followed by ________.

marketing strategy development

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC.

maturity

When a product hits the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition.

maturity

The second part of a marketing strategy statement describes the ________ of a new product.

planned price

Which of the following best describes the term "Madison and Vine"?

merging advertising with entertainment

The Sherman Act, Clayton Act, and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of ________.

monopolies

Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price.

monopolistic competition

Selective distribution is a strategy in which ________.

more than one but fewer than all willing intermediaries are used by a seller

) Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements?

multichannel distribution system

Clara's

multichannel distribution system

According to the text, the most logical budget-setting method in advertising is the ________ method.

objective-and-task

Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.

oligopolistic competition

Selling accessory products along with the main product is referred to as ________ pricing.

optional-product

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.

patent laws

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit?

percentage-of-sales method

In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships.

personal selling

Tilt Entertainment, a gaming design firm, has developed a new game called World Below. In order to get wider distribution, Tilt participates in the Gaming Entertainment Expo, which is attended by both sellers and consumers. Tilt sends a team of representatives for game presentation and negotiation and a team of professional gamers to showcase World Below at the Expo. The company also sends a team to sell its other games to consumers at the Expo. Which promotion mix tool has Tilt used in this scenario?

personal selling

Which of the following promotion tools will most likely make a consumer feel the need to listen and immediately respond to a seller?

personal selling

Which of the following types of promotion tools requires the most interaction with a customer?

personal selling

What is the primary goal of trade promotions?

persuading resellers to carry a brand

The primary objective of ________ advertising is to build selective demand.

persuasive

The use of both rail and trucks for transporting goods is called ________.

piggybacking

Cream Bay has come out with a new range of ice creams. To promote the new products, Cream Bay has set up shopping mall kiosks to offer free ice cream samples to potential customers. Which promotion tool is Cream Bay most likely using?

point-of-purchase promotions

In which step of the selling process does a salesperson learn as much as possible about a prospective customer before making a sales call?

preapproach

In which step of the selling process does a salesperson set call objectives?

preapproach

Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market. In this case, Penny Bank is using ________.

predatory pricing

Kartoffel, a food processing company, offers a free toy inside every 50g packet of their potato chips. Which of the following promotion tools does this exemplify?

premium

Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children's ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard?

presentation and demonstration

Which consumer promotion tool involves selling two products for the price of one?

price packs

Simpson Ltd., located in San Diego, provides a range of household and healthcare goods to consumers within the region. The firm also runs a number of local hotels and resorts under its brand name. Simpson employs different sales forces for each major division, so there are sales teams for household goods, healthcare goods, hotel management, and resort management. Simpson has most likely adopted a(n) ________ sales-force structure.

product

Easy Life manufactures a wide range of kitchen appliances, healthcare products, and cosmetics. Its salespeople are divided on the basis of their expertise in a product category. Again, within each category, they are divided into teams addressing large retail customers, convenience stores, and the general public. Which of the following sales-force structures has most likely been combined to form this complex sales-force structure?

product and market

Combining several products and offering the collection at a reduced price is referred to as ________ pricing.

product bundle

Which of the following sets the lower limit for a product's pricing?

product costs

In a sequential new product development process, once a product or service passes the business test, it moves into ________.

product development

In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.

product development

Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra?

product harvesting

A ________ is the way consumers perceive an actual or potential product.

product image

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing.

product line

Lazer Telecom, a cell phone manufacturer, has signed a contract with a production house to fund a new movie. The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen. What kind of advertising technique has Lazer Telecom most likely adopted in this example?

product placement

Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.

product stewards

Outbound logistics refers to moving ________.

products from the factory to resellers

The third part of a marketing strategy statement describes the ________ of a new product.

profit goals

When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs, the firm is granting ________.

promotional allowances

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?

promotional pricing

In which step of the selling process does a salesperson or company identify qualified potential customers?

prospecting

Robert Solis is a salesman in a company that specializes in event management. He uses the Internet to identify potential companies with which his company can build long-term profitable relationships. Which step in the selling process does this scenario depict?

prospecting

What is the first step in the selling process?

prospecting

Pricing a product based on consumers' reference prices is referred to as ________ pricing.

psychological

A company which uses a press release to explain the resignation of a former CEO is using ________ to maintain its brand image.

public relations

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events.

public relations

A ________ strategy involves a company spending a lot of money on advertising and promotion to induce consumers into buying the product by creating a demand vacuum.

pull

Pearl Sands is a resort in the town of Willington. It attracts the maximum number of customers in the summer. In the spring, Pearl Sands sponsors shows on TV and puts up billboards in Willington and the surrounding towns. The billboards advertise Pearl Sands as an ideal holiday spot, whether for a weekend getaway in the summer heat or for a family vacation. This is an example of a ________ strategy.

pull

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.

pure competition

There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products. An individual seller cannot charge more than the going market price without the risk of losing business to the other stores. What type of market does this example represent?

pure competition

Which of the following is a cost-effective mode for shipping large amounts of bulk products-coal, sand, minerals, and forest products-over long distances?

railroads

In which of the following promotion tools does a customer send a proof of purchase to a manufacturer, who then refunds part of the purchase price by mail?

rebate

How have social media tools most likely affected personal selling?

reducing the use of person-to-person selling efforts

Some products that have entered the decline stage can be cycled back to the growth stage through ________.

repositioning

Which of the following is a marketing intermediary?

retailers

In a just-in-time logistics system, ________.

retailers carry small inventories of merchandise to last for only a few days

Which term refers to the fixed amount in a salesperson's compensation?

salary

A company that offers an early bird discount to the first fifty purchasers of a new product is using the promotional tool of ________.

sales promotion

In a marketing communications mix, ________ refers to any short-term incentives to encourage the purchase of a product or service.

sales promotion

Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion mix has Mercury Electric used in this scenario?

sales promotion

Weekly or monthly work plans used by management to get information about salespeople are referred to as ________.

sales reports

Fruity Loop, a leading manufacturer of fruit-juices, introduces a new range of potato chips. To promote this new product, it offers a packet of potato chips free with every bottle of Fruity Loop juice. Which of the following promotion tools is Fruity Loop using in this case?

samples

Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________.

seasonal discount

Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage.

sequential

Which of the following is the first step in developing an advertising program?

setting advertising objectives

Which of the following is an example of narrowcasting using advertisements?

showing ads for diapers to would-be mothers in hospitals

The presentation stage of the selling process most likely involves ________.

showing how a company's products can solve a customer's problems

Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments.

simulated test markets

The ________ style of advertising shows ordinary people clearly using a product in a normal setting.

slice of life

What is the purpose of a sales manager using a time-and-duty analysis?

supervising salespeople

A company's external sources of new product ideas include its ________.

suppliers

Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________.

target costing

The first part of a marketing strategy statement describes the ________ of a new product.

target market

The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing.

target return

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.

team-based

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach.

team-based new product development

Which of the following media is most suitable for advertising a product that needs to be demonstrated?

television

Which of the following promotion tools would best reach a geographically dispersed mass audience in a short period of time?

television advertising

Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure.

territorial

A company that sells only one product line to one industry with customers in many locations would typically use a ________.

territorial sales-force structure

If a product passes both the concept test and the product test, the next step is most likely to be ________.

test marketing

Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________.

test marketing

An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising.

testimonial evidence

In the competitive-parity method of setting an advertising budget, the budget is set based on ________.

the amount spent by similar companies in the same industry

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions.

trade

Which group is most likely offered functional discounts by manufacturers?

trade-channel members that perform sales tasks

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________.

trade-in allowance

From the economic system's point of view, the role of marketing intermediaries is to ________.

transform the assortments of products made by producers into the assortments wanted by consumers

The difference between an inside sales force and an outside sales force is that an outside sales force ________.

travels frequently to call on customers in the field

Which of the following is most efficient for short hauls of high-value merchandise and is highly flexible in its routing and time schedules?

trucks

Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing.

two-part

Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location?

uniform-delivered pricing

Which of the following pricing strategies is the opposite of FOB-origin pricing?

uniform-delivered pricing

Fads are characterized by their ________.

unusually high sales and rapid decline

Reverse logistics refers to moving ________.

unwanted, excess products from resellers to producers

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?

use aggressive sales promotions

Which of the following best describes the personality symbol style of advertising?

using an animated character or mascot to represent a product in an advertisement

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

value delivery network

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.

value-added

Costs that change directly with the level of production are referred to as ________ costs.

variable

Under ________, a customer shares real-time data on sales and current inventory levels with a supplier, and the supplier then takes full responsibility for managing inventories and deliveries.

vendor-managed inventory systems

In a ________, producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate.

vertical marketing system

In which of the following cases is little or no test marketing most likely recommended for a new product?

when the costs of developing and introducing the product are low

A company launching a new product must first decide ________.

when to launch the product

Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as ________ pricing.

zone