MKT 300 Exam 2

Which strategy for handling a brand name is useful when a company plans to enter a foreign market with mainly one product and the brand name doesn't have negative connotations in any local markets? a. A one-brand-name-everywhere strategy b. An adaptation and modification strategy c. A strategy using different brand names in different markets d. All of these are correct.

a. A one-brand-name-everywhere strategy

Which of the following is a case of brand cannibalization? a. A tea manufacturer introduces a new brand of tea that eats into the sales of an existing tea brand in its product mix. b. A tea manufacturer introduces a new brand of tea that eats into the sales of an existing brand of another manufacturer. c. A tea manufacturer introduces a new brand of tea that has the unintended result of promoting the sales of an existing brand of another manufacturer. d. A tea manufacturer introduces a new but inferior brand of tea to promote the sales of an existing tea brand in its product mix.

a. A tea manufacturer introduces a new brand of tea that eats into the sales of an existing tea brand in its product mix.

Which of the following products has the highest trialability? a. A toothpaste b. A condominium c. An airline d. An investment app

a. A toothpaste

Which of the following is a similarity between merchant wholesalers and retailers? a. Both take title to products in the marketing channel. b. Both have little input into the terms of sale of a product. c. Both provide form utility. d. Both get a fee or commission based on sales volume.

a. Both take title to products in the marketing channel.

Which of the following is true about the European Union (EU)? a. European Union (EU) is one of the world's most important free trade zones. It has member countries such as Austria, Belgium, Bulgaria, the Czech Republic, Denmark, France, and so on, and it guarantees the freedom of movement of people, goods, services, and capital between member states. b. European Union (EU) is a trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States. c. European Union (EU) does not maintain a common trade policy with outside nations and a regional development policy. d. All consumer and industrial goods exported to EU countries are no longer subject to tariffs.

a. European Union (EU) is one of the world's most important free trade zones. It has member countries such as Austria, Belgium, Bulgaria, the Czech Republic, Denmark, France, and so on, and it guarantees the freedom of movement of people, goods, services, and capital between member states.

Which statement about the pyramid of corporate social responsibility is true? a. If a company does not make a profit, then the other 3 responsibilities - legal, ethical and philanthropic are moot. b. Ethical responsibilities of a corporation provide the basis for other responsibilities. c. Philanthropy should be the most important function of a corporation. d. Social responsibility efforts should be focused on the external and not the internal stakeholders of a corporation.

a. If a company does not make a profit, then the other 3 responsibilities - legal, ethical and philanthropic are moot.

Which of the following statements is true of customer integration for companies oriented toward demand-supply integration? a. It is a competency that enables firms to offer value-added offerings to those customers who represent the greatest value to the firm or supply chain. b. It is a process in which companies will collaborate on projects so that the customer gains the maximum amount of total value possible from the supply chain. c. It requires firms to link seamlessly to outsiders that provide goods and services to them so that they can provide high-quality customer experiences. d. It requires information hardware and software systems that can exchange information when needed between customers and suppliers.

a. It is a competency that enables firms to offer value-added offerings to those customers who represent the greatest value to the firm or supply chain.

Which of the following statements is true of a bundled price? a. It is simpler for a firm to administer than pricing each element separately. b. It is a pricing strategy where customers pay only for the service elements they use. c. It is a pricing strategy that does not apply to services. d. It is preferable when consumers are willing to pay "extra" for every part of the service.

a. It is simpler for a firm to administer than pricing each element separately.

Which of the following statements is a characteristic of countertrade? a. It refers to a form of trade in which all or part of the payment for goods or services is in the form of other goods or services. b. It refers to a system in which prices of different currencies move up and down based on the demand for and the supply of each currency. c. It refers to the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter. d. It refers to the active ownership of a foreign company or of overseas manufacturing or marketing facilities.

a. It refers to a form of trade in which all or part of the payment for goods or services is in the form of other goods or services.

Which of the following statements is true of a company that is in the second stage of developing a global business? a. It sets up foreign subsidiaries to handle sales in one country. b. It bases its entire operations in its home country. c. It maintains a virtual executive suite. d. It runs its business entirely through the Internet.

a. It sets up foreign subsidiaries to handle sales in one country.

When considering the diffusion of innovation, which group is least motivated by advertising or personal selling? a. Laggards b. The late majority c. The early majority d. Innovators

a. Laggards

Which strategy uses technology to deliver tailor-made services on a large scale? a. Mass customization b. Place strategy c. The service mix d. Promotion strategy

a. Mass customization

Which factor is considered the most critical in determining where customers choose to shop? a. Merchandise selection b. Store/website design c. Service d. Display

a. Merchandise selection

Maria is a very soft spoken girl and she hardly hurts anybody. She does not raise her voice when she speaks and is very careful about the way she speaks and the words she chooses. She gets married and finds that her husband is highly abusive. However she controls her anger for a considerable amount of time without retaliating. One fine day, she loses patience and abuses her husband and slaps him in public. What Maria exhibited conforms to the ethical theory of a. Moral relativism b. Act utilitarianism c. Rule utilitarianism d. Casuist ethical theory

a. Moral relativism

Which statement is true of the maturity stage of the product life cycle (PLC)? a. Niche marketers that target the underserved segments of a market emerge. b. The beginning of this stage is signaled by increased sales. c. Product design changes tend to become functional rather than stylistic. d. It is the shortest stage of the PLC.

a. Niche marketers that target the underserved segments of a market emerge.

__________________ is the practice of modifying products so those that have already been sold become obsolete before they actually need replacement. a. Planned obsolescence b. Product modification c. Product line extension d. Repositioning

a. Planned obsolescence

Jamal is a marketing manager who, when it comes to ethical decisions, is more concerned about the long-term effects of an ethical decision he makes than what others think of his decision. Therefore, which level of ethical development does Jamal's behavior demonstrate? a. Postconventional morality b. Ethnocentric morality c. Conventional morality d. Preconventional morality

a. Postconventional morality

Which of the following describes sales and operations planning (S&OP) meetings? a. Procurement, production, and logistics work together with marketing and sales. b. Procurement and logistics work with marketing and production works with sales. c. Marketing and sales work with procurement and logistics, not production. d. Marketing and sales work with production and logistics, not procurement.

a. Procurement, production, and logistics work together with marketing and sales.

Which of the following refers to changing one or more of a product's characteristics? a. Product modification b. Product line extension c. Planned obsolescence d. Repositioning

a. Product modification

Which of the following represents all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use? a. Retailing b. Product development c. Manufacturing d. Production

a. Retailing

Which of the following entails the logistical function of intermediaries in marketing channels? a. Sorting, accumulation, consolidation, and/or allocation of assets to conform to customer requirements b. Researching data on channel members and consumers c. Explaining a product's features, advantages, and benefits d. Contacting prospective buyers to make them aware of existing products

a. Sorting, accumulation, consolidation, and/or allocation of assets to conform to customer requirements

Connections between cargo vessels or trucks and transportation networks may eventually lead to the development of smart transportation modes that reroute in real time based on local traffic patterns, weather events, and accidents. Which of the following will someday enable such a possibility? a. The Internet of Things b. Supply chain analytics c. Cloud computing d. Strategic channel alliances

a. The Internet of Things

Which of the following statements is true of the product life cycle (PLC)? a. The PLC for a product form is longer than the PLC for any one brand. b. The PLC dictates the marketing strategy to be used for a product. c. Changes in a product, its uses, its image, or its positioning do not affect its life cycle. d. A product spends the same amount of time in the different stages of the life cycle.

a. The PLC for a product form is longer than the PLC for any one brand.

Which of the following statements is true of the global issues in services marketing? a. The international marketing of services is a major part of global business. b. Competition in international services is decreasing rapidly. c. The marketing mix elements do not need to take into account each country's cultural environment. d. The first step toward success in the global marketplace is designing the marketing mix elements.

a. The international marketing of services is a major part of global business.

Which statement is true of global marketing standardization? a. The markets throughout the world are becoming more alike. b. Companies must differentiate their offerings to satisfy different target markets. c. Companies utilizing global marketing standardization have different foreign market segments with different products. d. Consumers worldwide don't want the same things.

a. The markets throughout the world are becoming more alike.

________________ is the number of product lines an organization offers. a. The product mix width b. The product line depth c. A product item d. The product mix

a. The product mix width

According to research, how does a customer typically view a product that is out of stock? a. The stockout will lead the customer to buy an item that is similar to the out-of-stock item. b. Customers who cannot buy the out-of-stock item will not buy an item similar to that item. c. Customers view stockouts as an indication of the store's poor management of inventory. d. The tendency to buy an out-of-stock item decreases with every subsequent stockout.

a. The stockout will lead the customer to buy an item that is similar to the out-of-stock item.

Which of the following describes the late majority? a. They adopt a new product because most of their friends have already adopted it. b. They do not rely on group norms and their adoption is free from pressure to conform. c. They depend mainly on mass media rather than on word-of-mouth communication. d. They tend to be younger and above average in income as well as education.

a. They adopt a new product because most of their friends have already adopted it.

Which of the following is a function of marketing channel members? a. They attain economies of scale for producers through specialization and division of labor. b. They attain economies of scale through minimum interaction with suppliers. c. They aid downstream producers in marketing. d. They aid retailers in creating time, place, and exchange utility for customers.

a. They attain economies of scale for producers through specialization and division of labor.

What do programs like Google X do to promote innovative thinking among its employees? a. They eliminate the fear of coming up with bad ideas by rewarding failure. b. They promote investment in bad ideas to explore the possibilities learned from them. c. They promote the fear of coming up with bad ideas by punishing failure. d. They eliminate the possibility of investment in bad ideas by rewarding only successes.

a. They eliminate the fear of coming up with bad ideas by rewarding failure.

Which of the following statements is true of product lines? a. They provide economies of scale in advertising. b. They require greater transportation and warehousing costs than product items. c. They increase a firm's manufacturing and inventory costs. d. They limit the product choices offered to customers to one or two product items.

a. They provide economies of scale in advertising.

A(n) _________________ is a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores. a. shopping product b. specialty product c. sought product d. unsought product

a. shopping product

Which of the following is a goal of brainstorming? a. To discuss ideas while avoiding criticism of them b. To get a group to arrive at a solution within set parameters c. To get a group to promote a product without varying it d. To have a group criticize an idea until it is acceptable to all

a. To discuss ideas while avoiding criticism of them

Fournotts Corp. manufactures a special kind of filter that can purify water quickly, but consumers in the market are not aware of the product's existence. In this case, which of the following strategies will increase the sales of the filter? a. Using direct response advertising b. Using selective advertising c. Using customer-generated advertising d. Using status-conscious advertising

a. Using direct response advertising

If a product is modified by reducing its quality, the marketer's likely intent is to: a. allow a manufacturer to lower the price of the product. b. help firms cater more effectively to higher socioeconomic classes. c. provide new opportunities for market segmentation. d. increase brand loyalty.

a. allow a manufacturer to lower the price of the product.

Universal product codes (UPCs) are also known as _____ because the numerical codes appear as a series of thick and thin vertical lines. a. bar codes b. serial codes c. codicology d. mnemonics

a. bar codes

An upmarket dressmaking company deliberately keeps its number of outlets very low even after years of climbing profits. There are no more than two in any major city of the United States. The policy may be justified in terms of the company's objective to ______. a. be exclusive b. meet market's needs c. cut costs d. play it safe

a. be exclusive

Unlike supermarkets, convenience stores: a. carry a much more limited line of high-turnover convenience goods. b. enable customers to shop without visiting a physical store location. c. charge lower prices. d. offer no service to customers.

a. carry a much more limited line of high-turnover convenience goods

A socially responsible marketing effort by a for-profit firm and a nonprofit organization that targets social or other charitable causes is referred to as __________. a. cause-related marketing. b. philanthropy c. moral relativism. d. green marketing

a. cause-related marketing.

Unlike multichannel marketing, omnichannel marketing: a. creates greater customer control over the shopping experience. b. requires each channel to have its own inventory, processes, and performance metrics. c. creates redundancy and complexity in a firm's distribution system. d. requires the construction of multiple and individual supply chains.

a. creates greater customer control over the shopping experience.

A difference between people-processing services and possession-processing services is that possession-processing services a. do not require customers to enter the service factory. b. use technology directed at a customer's assets. c. focus more on training employees on employee-customer interactions. d. focus more on customers and not on their physical possessions.

a. do not require customers to enter the service factory.

The composition and appearance of a product that make it desirable constitute its ______ utility. a. form b. exchange c. place d. time

a. form

At the preconventional level of ethical development of a person's moral character, the individual tends to: a. have an egocentric orientation. b. focus on the long-term results of his or her actions. c. focus on societal expectations. d. adhere to social norms and laws.

a. have an egocentric orientation.

Quinn is the sales manager of a firm with a questionable reputation. During his tenure, he has witnessed numerous incidents of ethical misconduct. Research shows that he would observe less ethical misconduct if ________________________. a. his coworkers had a strong ethical culture among themselves b. a code of ethics was absent from his firm c. organizational rules were flouted in his firm d. the top managers of his firm had little control over organizational culture

a. his coworkers had a strong ethical culture among themselves

Channel members are also known as _____. a. intermediaries b. early adopters c. laggards d. innovators

a. intermediaries

Steven, a construction worker, tends to buy a new gadget if most of his friends have them and only after they've teased him about not having the gadget yet. He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions. It can be inferred that when it comes to the diffusion of innovation, Steven belongs to the group of _____. a. late majority b. innovators c. early majority d. early adopters

a. late majority

The legal process whereby a company allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge is ______________. a. licensing b. contract manufacturing c. joint venture d. direct foreign investment

a. licensing

Unlike goods, services are a. more heterogeneous and less standardized and uniform. b. tangible performances. c. stored, warehoused, and inventoried. d. produced in a centralized location and consumed in decentralized locations.

a. more heterogeneous and less standardized and uniform.

Yater's Inc. is a food and beverage company based in the United States. The company decides to market and sell its products in all European countries under the same brand name. In this scenario, Yater's Inc. has decided to use a(n) _____. a. one-brand-name strategy b. transactional marketing strategy c. co-branding strategy d. individual branding strategy

a. one-brand-name strategy

The retailing mix consists of six Ps: the four Ps of the marketing mix (product, promotion, place, and price) plus ______. a. presentation and personnel b. population and purpose c. population and personnel d. presentation and preference

a. presentation and personnel

The first element in the retailing mix is the _____. a. product offering b. retail location c. product pricing d. retail promotion

a. product offering

A company well-known for its easy-to-cook breakfast cereals was facing stiff competition from the many players in the market. The company changed its campaign to focus on dietary needs rather than just convenience, thus targeting a segment of consumers looking for healthy diet. This is an example of a ______. a. repositioned product b. discontinuous innovation c. new and improved product d. new line-extension product

a. repositioned product

The approach taken in the process of simultaneous product development leads a company to ______. a. shorten the development process and incur decreased costs b. lengthen the development process and incur increased costs c. lengthen the development process and incur decreased costs d. shorten the development process and incur increased costs

a. shorten the development process and incur decreased costs

The Hunt, a liquor store, is famous for its unique and extensive collection of alcoholic beverages. Its employees possess up-to-date knowledge of the liquor available in the store, which allows them to assist customers in their purchasing decisions. The Hunt is an example of a _____. a. specialty store b. supermarket c. convenience store d. warehouse club

a. specialty store

In the United Kingdom, Tesco Grocery stores plan afternoon shipments from distribution centers to stores only after reading morning sales data. This way, they can replenish inventory sold only hours before. Tesco is an example of supply chain that is ______. a. strictly agile b. partly agile, but mostly lean c. strictly lean d. partly lean, but mostly agile

a. strictly agile

Redoubt Nation, a specialty store that sells adventure sports gears, employs one salesperson per customer. Each salesperson is required to influence customers to purchase items related to the products they have purchased. In this scenario, Redoubt Nation is using _____ as its marketing strategy. a. suggestion selling b. merchandise type c. trading up d. low employee density

a. suggestion selling

Ambient Management, Inc. was experiencing a gap in the services it was providing. It closed the gap by ensuring that its customer-facing staff had the skills, training, and proper tools to perform their jobs. When compared with the gap model of service quality, the gap that the company addressed was between what ______. a. the service quality specifications were and the service that was actually provided b. management thought customers wanted and the quality specifications it developed c. customers wanted and what management thought customers wanted d. the company provided and what the customers were told it provided

a. the service quality specifications were and the service that was actually provided

Because wholesalers neither dramatically alter the product they handle nor sell it directly to the consumer, their value hinges on their providing retailers ______. a. time and place utility and contact efficiency b. form and place utility and contact efficiency c. form and place utility, but not contact efficiency d. time and place utility, but not contact efficiency

a. time and place utility and contact efficiency

Torque Roz, an automobile company, uses a unique tire design on its vehicles. A rival company was found copying the exact design for its automobiles. Torque Roz filed a legal claim against the rival company regarding this issue and won the lawsuit. In this scenario, Torque Roz's unique tire design is a registered _____. a. trademark b. captive brand c. service mark d. private brand

a. trademark

Rent and Drive is a car rental company. It prices its rentals based on operations-oriented pricing. In this scenario, Rent and Drive a. varies the prices according to the supply and demand of cars. b. maximizes the surplus of income over its costs. c. allows customers to negotiate price. d. varies prices for customers from different market segments.

a. varies the prices according to the supply and demand of cars.

Full-line discounters typically carry ______. a. wide assortments of merchandise that are shallow b. narrow assortments of merchandise that are deep c. wide assortments of merchandise that are deep d. narrow assortments of merchandise that are shallow

a. wide assortments of merchandise that are shallow

Nonprofit organizations account for a little over ______ percent of the economic activity in the United States. a. 10 b. 20 c. 5 d. 30

b. 20

Which of the following statements is true of globalization? a. It leads to a monopoly of domestic producers. b. It expands economic freedom and increases the living standards of people. c. It increases prices and decreases product and service quality. d. It has curbed the growth of the middle class in developing countries.

b. It expands economic freedom and increases the living standards of people.

Which of the following is true of outsourcing? a. It reduces productivity and revenue growth. b. It faces production delays due to faulty parts. c. It reduces corporate growth. d. It increases energy costs in the United States.

b. It faces production delays due to faulty parts.

Which of the following identifies a difference between a boycott and a quota? a. A boycott sets a limit on the amount of goods entering a country, whereas a quota is a tax levied on goods entering a country. b. A boycott is the exclusion of all products from certain countries or companies, whereas a quota is a means of protection from foreign competition. c. A boycott is used to include all foreign competition, whereas a quota is used by governments to exclude companies from countries with which they have a political dispute. d. A boycott is the revenue received from international trade, whereas a quota is the revenue received from domestic trade.

b. A boycott is the exclusion of all products from certain countries or companies, whereas a quota is a means of protection from foreign competition.

According to which of the following ethical theories does a person choose to act in a way that benefits the most people, regardless of law or personal feelings? a. Rule utilitarianism b. Act utilitarianism c. Moral relativism d. Virtue ethics

b. Act utilitarianism

The term product refers to which of the following? a. Ideas b. All of these are correct. c. Services d. Tangible goods

b. All of these are correct.

Which of the following correctly defines the role of an export broker? a. An export broker is an intermediary who sells domestically produced products to buyers in other countries. b. An export broker is an intermediary who plays the traditional broker's role by bringing buyer and seller together. c. An export broker is an intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market. d. An export broker is an intermediary in the global market that assumes all ownership risks and sells globally for its own account.

b. An export broker is an intermediary who plays the traditional broker's role by bringing buyer and seller together.

_____ is a form of nonstore retailing that uses machines to sell its goods. a. Telemarketing b. Automatic vending c. Direct retailing d. E-tailing

b. Automatic vending

Which of the following is a characteristic shared by both early majority and the late majority? a. Both tend to have opinion leaders within their groups. b. Both depend on word-of-mouth communication. c. Both rely on science and experts for information. d. Both are primarily influenced by the mass media.

b. Both depend on word-of-mouth communication.

Which of the following is a similarity between specialty stores and restaurants? a. Both have low prices. b. Both have narrow product assortment. c. Both have low gross margins. d. Both offer high levels of service

b. Both have narrow product assortment.

In which way are deontological theory and moral relativism similar? a. Both theories are concerned with the welfare of others. b. Both theories may lead to actions that are not ethically correct. c. Both theories compare a current ethical dilemma with similar examples and outcomes. d. Both theories are free from flaws.

b. Both theories may lead to actions that are not ethically correct.

Which of the following theories assumes that the outcomes of a current ethical dilemma will be comparable to the outcomes of similar ethical dilemmas? a. Rule utilitarianism b. Casuist ethical theory c. Ethical relativism d. Act utilitarianism

b. Casuist ethical theory

Which of the following refers to placing two or more brand names on a product or its package? a. A service mark b. Co-branding c. A trademark d. Family branding

b. Co-branding

Which of the following statements is true of an unsought product? a. Consumers usually buy an unsought product only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility. b. Companies dealing with unsought products must go directly to consumers through a salesperson, direct mail, or direct response advertising to create awareness about their products. c. Marketers of unsought products often use selective, status-conscious advertising to maintain a product's exclusive image. d. Consumers buy unsought products regularly, usually without much planning and at inexpensive prices.

b. Companies dealing with unsought products must go directly to consumers through a salesperson, direct mail, or direct response advertising to create awareness about their products.

Berkley's Nooks are a self-service chain of service stations with stores that are located near residential areas. They are open long hours and offer fast service in exchange for charging premium prices. Their customers are beginning to demand more from them, such as higher quality food and lower prices on staple items such as gasoline and milk. Which type of retailers are Berkley's Nooks? a. Supermarket b. Convenience store c. Superstore d. Specialty store

b. Convenience store

A marketing decision maker who is concerned only with whether a proposed action is legal and how it will be viewed by others is demonstrating which level of ethical development? a. Postconventional morality b. Conventional morality c. Preconventional morality d. Ethnocentric morality

b. Conventional morality

According to the pyramid of corporate social responsibility, which component includes the behavioral aspect of corporate social responsibility, that is being meticulous and trustworthy. a. Legal responsibilities b. Ethical responsibilities c. Philanthropic responsibilities d. Economic responsibilities

b. Ethical responsibilities

Which of the following is NOT correct regarding the practice of inshoring? a. Rapid consumer product innovation has led to the need to keep production experts in close proximity so that they can work together. b. Expanding development and manufacturing timelines have contributed to inshoring. c. Rising wages in the developing world have made U.S. rates more competitive. d. Increased fuel and transportation costs associated with long-distance shipping has given impetus to inshoring.

b. Expanding development and manufacturing timelines have contributed to inshoring.

Which of the following statements is true of service failures? a. Retailers cannot recover from service failures. b. If handled effectively, these can result in higher customer loyalty. c. These can be solved by canceling return policies. d. These can be eliminated by successful market segmentation.

b. If handled effectively, these can result in higher customer loyalty.

Which statement is true of cause marketing? a. It describes a marketing relationship based on a straight donation. b. It involves the cooperative efforts of a for-profit firm and a nonprofit organization for their mutual benefit. c. It seldom helps companies increase the sale of their products. d. It occurs when government agencies and nonprofit agencies launch social campaigns.

b. It involves the cooperative efforts of a for-profit firm and a nonprofit organization for their mutual benefit.

When evaluating service quality, which statement is true of reliability? a. It involves providing prompt service to customers. b. It is performing the service right the first time. c. It involves being caring and paying individualized attention to customers. d. It refers to the knowledge and courtesy of employees.

b. It is performing the service right the first time.

Which of the following statements best describes simultaneous product development? a. It is used to determine the reactions of potential customers in a market situation. b. It is the process where all the involved areas work together rather than sequentially during a product's development. c. It is a strategy that provides general guidelines for generating, screening, and evaluating new-product ideas. d. It is a strategy that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.

b. It is the process where all the involved areas work together rather than sequentially during a product's development.

Which of the following statements is true of simulated market testing? a. It is a useful tool for implementing simultaneous product development. b. It is used to monitor shopper behavior to assess a product's likely performance. c. It is often conducted on prototype models during the development stage. d. It is the final stage in the new-product development and marketing process.

b. It is used to monitor shopper behavior to assess a product's likely performance.

Which of the following statements is true of the supplier relationship management process? a. It enables suppliers and business units to operate with limited or no interaction. b. It provides structural support for developing and maintaining relationships with suppliers. c. It incorporates features and cost-cutting measures into final products. d. It enables firms to act as leaders in protecting the natural environment.

b. It provides structural support for developing and maintaining relationships with suppliers.

Which of the following statements is true of the term quota? a. It refers to an agreement to stimulate international trade. b. It refers to a limit on the amount of a specific product that can enter a country. c. It refers to the exclusion of all products from certain countries or companies. d. It refers to a tax levied on the goods entering a country.

b. It refers to a limit on the amount of a specific product that can enter a country.

Which of the following allows direct mailers from a manufacturing company to pick out (based on data analytics of census data, lifestyle patterns, financial information, and past purchase and credit history) those most likely to buy its products? a. Direct retailing b. Microtargeting c. Telemarketing d. Automatic vending

b. Microtargeting

Which of the following is true of nonprofit organizations? a. Together, federal, state, and local governments collect tax revenues that amount to almost half of the U.S. GDP. b. Nonprofit services vary greatly from producer to producer and from day to day, even from the same producer. c. Nonprofit organizations do not include private museums, theaters, schools, and churches. d. The cost of government (i.e., taxes) has become a big item in the American family budget but remains less than health care.

b. Nonprofit services vary greatly from producer to producer and from day to day, even from the same producer.

Which of the following is a difference between off-price retailers and specialty shops? a. Off-price retailers keep a greater amount of floor stock, whereas specialty shops keep a lower amount of floor stock. b. Off-price retailers focus on lean inventory management, whereas specialty shops have an agile approach to inventory. c. Off-price retailers charge customers higher prices, whereas specialty shops charge customers lower prices. d. Off-price retailers focus on providing high-quality customer service, whereas specialty shops de-emphasize customer service.

b. Off-price retailers focus on lean inventory management, whereas specialty shops have an agile approach to inventory.

Which of the following is one of the four major components of the pyramid of corporate social responsibility? a. Creativity b. Philanthropy c. Self-dealing d. Opportunism

b. Philanthropy

Which of the following statements is true of retail channel omnification? a. Consumers are required to pick up their orders from a physical store after purchasing online. b. Physical and online stores are combined into a single system for delivering on customer demand. c. Consumers are required to visit physical stores before getting access to their online store. d. Physical stores are replaced by warehouses to store goods that can be purchased online.

b. Physical and online stores are combined into a single system for delivering on customer demand.

For which type of products are concept tests thought to be less effective in predicting the success of a product? a. Products that are line extensions (same product category and brand) b. Products that create new consumption patterns c. Products that do not require major changes in consumer behavior d. Products that are not easily classified into existing product categories

b. Products that create new consumption patterns

Which is true of the influencers found among early adopters? a. They use media differently than other users who are considered followers. b. They are distinguished not by demographics but by behavior. c. They come from higher-income groups and are mostly in their 30s. d. They are not focused on earning the respect of others.

b. They are distinguished not by demographics but by behavior.

Which is a characteristic of companies that adopt a supply chain orientation? a. They do things that harm the entire supply chain in the long run. b. They have the capability to deliver on the promises they make. c. They work independentlyof top management of the companies. d. They cannot accept short-term risks on behalf of others.

b. They have the capability to deliver on the promises they make.

Off-price retailers sell their goods at prices 25 percent or more below traditional department store prices. What makes such a policy viable? a. They offer only volume discounts in exchange for a periodic membership fee. b. They pay cash for its stock and usually doesn't ask for return privileges. c. They resell items purchased from one of the other types of retailers. d. They specialize in a single line of merchandise and are the dominant retailer in their category.

b. They pay cash for its stock and usually doesn't ask for return privileges.

Which of the following statements is true of channel members? a. Agents and brokers take ownership of goods. b. They provide contact efficiency. c. They provide generalization of labor. d. Merchant wholesalers create form utility.

b. They provide contact efficiency.

Which of the following represents the thinking behind supercenters? a. They offer a nearly complete selection of merchandise within a single category and use self-service, discount prices, high volume, and high turnover to their advantage. b. They sell items from a full-line discount stock to customers who are drawn in primarily by the food on sale. c. They specialize in a single line of merchandise and become the dominant retailer in its category. d. They sell overruns, irregular merchandise, and/or overstocks purchased from manufacturers at or below cost.

b. They sell items from a full-line discount stock to customers who are drawn in primarily by the food on sale.

So far as promotion decisions are concerned, many nonprofit organizations are explicitly or implicitly prohibited from advertising, thus limiting their promotion options. Are federal agencies included in this category? a. Yes, all federal agencies fall into this category. b. Yes, most federal agencies fall into this category. c. Yes, only federal agencies fall into this category. d. No, federal agencies are exempt from this rule.

b. Yes, most federal agencies fall into this category.

West Coast Traders provides expertise for a range of products within a category. It markets and facilitates the sale of many different manufacturers' products to a grocery chain. However, West Coast Traders never takes ownership of any food products, so it would be considered a(n) ____________________. a. retailer or a wholesaler b. agent or a broker c. broker or a manufacturer d. agent or a wholesaler

b. agent or a broker

The most obvious function of packaging is to: a. even out seasonal sales patterns. b. contain products that are liquid, granular, or otherwise divisible. c. protect a brand name from being declared a generic product name. d. secure the right of a company to use a brand or part of a brand.

b. contain products that are liquid, granular, or otherwise divisible.

A manufacturer making a choice between too few and too many outlets is essentially deciding between providing ______. a. convenience to customers and diversifying into other businesses b. convenience to customers and keeping costs to the company low c. quality products to customers and keeping costs to the company low d. customers an online shopping option and having an exclusive brand

b. convenience to customers and keeping costs to the company low

Providing great customer service is one of the most challenging elements in the retail mix because: a. customer relations do not increase brand value. b. customer expectations for service vary greatly. c. customers are indifferent to service quality. d. customers do not trust retail salespeople.

b. customer expectations for service vary greatly.

A law compelling a company earning from the markets overseas to sell it to a control agency, usually a central bank, is called ___________. a. tariff b. exchange control c. quota d. market grouping

b. exchange control

Acme Foundation provides information about channel members and consumers by getting answers to key questions such as, Who are the buyers? Where are they located? Why do they buy? Acme also ensures that channel members have the money to keep products moving through the channel to the ultimate consumer. The function of Acme described here is ______. a. transactional b. facilitating c. ideation d. logistical

b. facilitating

Compared to convenience products, shopping products are: a. purchased without significant planning. b. found in fewer stores. c. new products unknown to a potential buyer. d. less expensive.

b. found in fewer stores.

A _____ is a discount store that carries a vast depth and breadth of product within a single product category. a. specialty discount store b. full-line discount store c. supercenter d. warehouse club

b. full-line discount store

Yumé Nu, a battery manufacturing company, began marketing its products as environmentally friendly and biodegradable, even though this has not been scientifically verified. In this scenario, Yumé Nu has used _____ to sell its products. a. product line extension b. greenwashing c. repositioning d. quality modification

b. greenwashing

Marketing costs are high in the introductory stage of the product life cycle because a. product design changes become stylistic rather than functional. b. high dealer margins are often needed to obtain adequate distribution. c. emphasis is given to communicating the differences among brands in the market. d. manufacturers scramble to sign up dealers and distributors

b. high dealer margins are often needed to obtain adequate distribution

Roger, an affluent college graduate, buys gadgets on the day of their launch in the market. He reads expert reviews on the Internet, and is not influenced by the opinions of his family and friends while choosing products. Roger is most likely to belong to the category of _____ in the context of diffusion of innovation. a. the early majority b. innovators c. early adopters d. the late majority

b. innovators

That consumers must be present during the production of services points to the ______ of services. a. heterogeneity b. inseparability c. intangibility d. perishability

b. inseparability

Often small ventures are skeptical about entering the global market because it: a. empowers governments to abuse the freedom and property of their citizens. b. involves various trade laws or tariffs. c. limits access to advanced technologies in less developed countries. d. slows down the rate at which people's living standards increase.

b. involves various trade laws or tariffs.

Starbucks uses different kinds of coffee, dairy and non-dairy alternatives, flavor shots, and temperature levels to create a diverse array of options for customers. It uses a machine called a Clover, which allows baristas to customize brew times down to the second, specify how much exposure the water has to the coffee grounds, and dial in a precise temperature. Starbucks is well-geared toward ______. a. standardization b. mass customization c. customization d. mass standardization

b. mass customization

In the business of running movie theaters, it was proposed that the tickets be priced significantly higher than usual for each of the opening weekends of the year's summer blockbusters. This kind of pricing is ______. a. both operations-oriented and patronage-oriented b. operations-oriented, not patronage-oriented c. patronage-oriented, not revenue-oriented d. both revenue-oriented and patronage-oriented

b. operations-oriented, not patronage-oriented

When predicting or explaining a new the rate of adoption and diffusion of a new product, relative advantage refers to the degree to which that product is ______. a. free of difficulty relating to its usage b. perceived as superior to existing substitutes c. consistent with existing values d. available to be tried on a limited basis

b. perceived as superior to existing substitutes

A(n) ________________ is a brand name owned by a wholesaler or a retailer. a. captive brand b. private brand c. individual brand d. manufacturer's brand

b. private brand

Kate is a customer care executive at a telecommunications service provider. She receives a complaint from a customer about an unnecessary $10 charge on his phone bill. If the company follows the customer service management process, Kate is most likely to: a. integrate the company's internal capabilities with the customer's needs. b. provide a quick response to the customer using customer care software. c. resolve the complaint only if the customer is highly valuable to the company. d. forecast whether such problems will arise in the future.

b. provide a quick response to the customer using customer care software.

When considering the types of demand-supply integration, _____ includes the ways in which two or more companies will collaborate on activities or projects so that the customer gains the maximum amount of total value possible from the supply chain. a. technology and planning integration b. relationship integration c. measurement integration d. material and service supplier integration

b. relationship integration

A consultancy firm that provides a wide range of services relating to tax payments and tax law is known for performing these services dependably, accurately, and consistently. This clearly implies that the company rates high on ______. a. assurance b. reliability c. responsiveness d. empathy

b. reliability

The stage in which multinationals set up foreign subsidiaries to handle sales in one country is the _______________ in developing a global business. a. third stage b. second stage c. first stage d. fourth stage

b. second stage

Paulette goes to an appliance store to purchase a refrigerator. After comparing the technical features, prices, and durability of the various brands of refrigerators available, she purchases the cheapest and smallest in size. In this case, Paulette has purchased a _____. a. specialty product b. shopping product c. business product d. convenience product

b. shopping product

A code of ethics: a. should include an operations schedule of day-to-day activities. b. should be in written form to avoid confusion. c. Does not help employees to identify what is wrong and what is right. d. should be limited to a list of dos and don'ts.

b. should be in written form to avoid confusion.

Which of the following is NOT true about culture from the perspective of a global marketer? a. Culture underlies the family, the educational system, religion, and the social class system. b. Cultural blunders lead to misunderstandings and often perceptions of rudeness or even incompetence. c. A company that does not understand a country's culture may try other means to succeed in the country. d. Culture is the common set of values shared by its citizens that determines what is socially acceptable.

c. A company that does not understand a country's culture may try other means to succeed in the country.

Which of the following is a difference between a joint venture and contract manufacturing? a. A joint venture is formed when an agreement to stimulate international trade is made, while contract manufacturing occurs when a tax is levied on the goods entering a country. b. A joint venture is formed when several countries agree to work together to form a common trade area, while contract manufacturing occurs when government efforts stifle investment by foreign corporations. c. A joint venture is formed when a domestic firm buys part of a foreign company to create a new entity, while firms choose contract manufacturing to avoid being involved in licensing. d. A joint venture is formed when a domestic firm broadens its global marketing base without investment, while in contract manufacturing; a licensor allows another firm to use its manufacturing process.

c. A joint venture is formed when a domestic firm buys part of a foreign company to create a new entity, while firms choose contract manufacturing to avoid being involved in licensing.

Lina orders a spare part for her custom-built bike from Lumberne Technologies Inc. The company makes use of three-dimensional printing to produce the spare part at its location closest to Lina's home. In this case, which of the following technologies is used to produce the spare part? a. Lenticular printing b. Tampography c. Additive manufacturing d. Molding

c. Additive manufacturing

Which of the following aspects of packaging is especially important in international marketing? a. Aesthetics b. Labeling c. All of the above are correct. d. Climate considerations

c. All of the above are correct.

Which of the following is a tool that governments use to exclude companies from countries with which they have a political dispute? a. Exchange control b. Tariff c. Boycott d. Market grouping

c. Boycott

Which of the following statements is true of greenwashing? a. Greenwashing is a highly reliant way of identifying environment-friendly products. b. The Federal Trade Commission does not interfere with the rules regarding green certifications. c. Certification of a product's environmental friendliness by the same company that produced it should be clearly stated on the packaging. d. Consumer demand for green products has helped abate proliferation of green certifications.

c. Certification of a product's environmental friendliness by the same company that produced it should be clearly stated on the packaging.

At which stage in the new-product development process is the decision to market a product made? a. Business analysis b. Development c. Commercialization d. Test marketing

c. Commercialization

_____ occurs when two brands receiving equal treatment (in the context of an advertisement) borrow from each other's brand equity. a. Complementary branding b. Family branding c. Cooperative branding d. Ingredient branding

c. Cooperative branding

Which of the following ethical theories believes that people should abide by their obligations and duties when stuck in an ethical dilemma? a. Casuist ethical theory b. Moral relativism theory c. Deontological theory d. Utilitarian ethical theory

c. Deontological theory

Which global brand name strategy is useful when the marketer wants the brand to appear to be a local brand or when regulations require localization? a. One-brand-name everywhere b. Transactional marketing strategy c. Different brand names in different markets d. Adaptations and modifications

c. Different brand names in different markets

Which statement describes department stores such as JCPenney and Macy's? a. All departments—such as shoes, children's clothing, electronics, housewares, etc.—operate collectively as a single profit center, but policies about pricing and the types of merchandise carried are set at the individual departmental level. b. Each department acts as a separate profit center, setting its own policies about pricing and the types of merchandise carried. c. Each department acts as a separate profit center, but the central management sets policies about pricing and the types of merchandise carried. d. All the departments—such as shoes, children's clothing, electronics, housewares, etc.—operate collectively as a single profit center, and the central management sets policies about pricing and the types of merchandise carried.

c. Each department acts as a separate profit center, but the central management sets policies about pricing and the types of merchandise carried.

From the types of retailers listed below, choose the one that generally has a medium-to-broad product assortment, while the others typically have a broad product assortment. a. Supermarkets b. Warehouse clubs c. Full-line discount stores d. Department stores

c. Full-line discount stores

______________ is when a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly. a. Captive branding b. Informational labeling c. Greenwashing d. Family branding

c. Greenwashing

A new range of organic confectionary was introduced by Bounty Foods. The company is forced to give its dealer high margins and also needs to invest heavily in advertising. Their production costs are also high. In which PLC stage is the company most likely to be? a. Maturity stage b. Growth stage c. Introductory stage d. Decline stage

c. Introductory stage

Which is an advantage for companies that globalize their supply chains? a. It decreases the length and risk of supply chains globally. b. It helps standardize the quality of the products produced. c. It allows companies to take advantage of cheaper labor and not have to contend with trade barriers and tariffs encountered and thus increases the demand for imported products worldwide. d. It helps reduce transportation and warehousing costs.

c. It allows companies to take advantage of cheaper labor and not have to contend with trade barriers and tariffs encountered and thus increases the demand for imported products worldwide.

Which of the following is true of returns management? a. Granting customers the freedom to try products without being charged for returning them ultimately reduces revenues for companies. b. It adds additional costs to marketing and is a burden on the already strained workforce in the customer relations department. c. It allows the firm to recognize weaknesses in product design and/or areas for potential improvement through customer feedback. d. Handling returns creates a negative image as the company loses credibility for its inability to deliver on what it claims to sell.

c. It allows the firm to recognize weaknesses in product design and/or areas for potential improvement through customer feedback.

Which of the following is an advantage of outsourcing logistics functions? a. It eliminates the need to use a third-party logistics company. b. It lengthens the order-to-cash cycle. c. It enables firms to locate stock at fewer plants and distribution centers. d. It helps firms focus investment on their logistical functions rather than on core business.

c. It enables firms to locate stock at fewer plants and distribution centers.

In which way does the concept of product life cycle (PLC) help marketing managers? a. It tells managers the length of a product's life cycle. b. It dictates the marketing strategy to be used for a product. c. It helps marketers forecast future events and suggest appropriate strategies. d. It informs marketers about the duration of a product in the various stages of its life cycle.

c. It helps marketers forecast future events and suggest appropriate strategies.

Which of the following statements is true of the demand management process? a. It increases costs as it involves serving multiple types of customers who have variable wants and needs. b. Demand management can ease pressure on the production process and allow companies to satisfy most of their customers through greater flexibility in manufacturing, marketing, and sales programs. c. It involves creating customer-focused plans of action prior to actual purchases being made. d. It focuses on providing a quick positive response to negative customer feedback.

c. It involves creating customer-focused plans of action prior to actual purchases being made.

Which of the following options defines brand loyalty? a. It is the value of a company or brand name. b. It is that part of a brand that can be spoken, including letters, words, and numbers. c. It is a consistent preference for one brand over all others. d. It is a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products.

c. It is a consistent preference for one brand over all others.

Which of the following statements is a feature of the Foreign Corrupt Practices Act (FCPA)? a. It cannot prosecute cases of bribery. b. It offers significant advantages to U.S. businesses dealing in countries in which the use of illegal payments and bribes is acceptable. c. It prohibits U.S. corporations from making illegal payments to foreign governments. d. It prohibits U.S. corporations from involvement in international business dealings.

c. It prohibits U.S. corporations from making illegal payments to foreign governments.

When considering corporate social responsibility, which is true of stakeholder theory? a. It states that the management does not play a special role in the organization. b. It states that social responsibility is best carried out by government agencies. c. It states that a company is expected to be a good citizen in its community. d. It states that companies should only focus on increasing shareholder wealth.

c. It states that a company is expected to be a good citizen in its community.

Laelle Inc. is a company that sells apparel for women. It recently shut down its physical store and is operating as a completely app-based store now. The app allows users to access the store's products anytime and anywhere using their cell phones, and it also has features that allow users to compare the prices of similar products across different online stores. This scenario exemplifies: a. multichannel marketing. b. a drop and shop program. c. M-commerce. d. dual distribution.

c. M-commerce.

Which methodology does Walmart use to determine where in the store to stock products for customer convenience (for example, placing Kleenex tissues in the paper-goods aisle and also beside cold medicines)? a. Shopper analytics b. Shopper marketing c. Market-basket analysis d. Big data analysis

c. Market-basket analysis

_____ is the technique used to sift through the data collected by point-of-purchase scanning equipment. a. Shopper marketing b. Shopper analytics c. Market-basket analysis d. Big data analysis

c. Market-basket analysis

Which of the following statements is not correct about multinational companies a. They possess and can transfer the most up-to-date technology. b. Multinational companies employ a small proportion of the labor force with increasingly capital-intensive technologies. c. Multinational companies have low income levels. d. Multinationals may not substantially increase employment in developing nations

c. Multinational companies have low income levels.

Which of the following is widely believed to be true of the audio and visual factors creating a store's atmosphere? a. Music played in a store cannot influence store traffic or the shopper's focus of attention. b. The type of music played cannot influence a customer's choice of product. c. Natural lighting, either from windows or skylights, can lead to increased sales. d. Red is used to open up closed-in places and create an air of elegance and cleanliness.

c. Natural lighting, either from windows or skylights, can lead to increased sales.

Identify a similarity between laggards and innovators. a. Both are eager to try new products. b. Both exhibit short adoption time. c. Neither relies on group norms. d. Neither is rooted in tradition

c. Neither relies on group norms.

What kind of service processing does the airline industry address? a. Mental stimulus processing b. Possession processing c. People processing d. Information processing

c. People processing

Hallie has a tendency to be egocentric. She follows the rules of her company mainly to avoid punishment and to gain respect. When making decisions, she always focuses on the immediate benefits she will gain from an alternative. Which of the following levels of ethical development does Hallie's behavior illustrate? a. Conventional morality b. Postconventional morality c. Preconventional morality d. Ethnocentric morality

c. Preconventional morality

Which of the following refers to altering a basic product to meet local conditions? a. Promotion adaptation b. Product invention c. Product adaptation d. Global marketing standardization

c. Product adaptation

Which of the following provides an accurate contrast of product life cycle lengths? a. The PLC for a product category is usually shorter than the PLC for any one product form. b. The PLC for a product category is usually shorter than the PLC for any one brand. c. The PLC for a product form is usually longer than the PLC for any one brand. d. The PLC for a product form is usually equal to the PLC for the corresponding product category.

c. The PLC for a product form is usually longer than the PLC for any one brand.

Which of the following correctly defines balance of payments? a. The difference between the value of a country's exports and the value of its imports over a given period b. Total income estimated from returning production jobs to the United States c. The difference between a country's total payments to other countries and its total receipts from other countries d. Total market value of all final goods and services produced in a country for a given time period

c. The difference between a country's total payments to other countries and its total receipts from other countries

Which of the following statements is true of internal marketing? a. Internal marketing is applicable only to the employees of goods manufacturers and not of service firms. b. Customers are treated as potential employees as they become the delivery vehicle of the purchased products. c. The quality of a firm's employees is an important part of building long-term relationships with customers. d. Different manufacturers exchange goods internally in an attempt to curb a negative competitive spirit.

c. The quality of a firm's employees is an important part of building long-term relationships with customers.

Which of the following statements is true of public-private partnerships? a. They lack the power to solve future national and global supply chain problems. b. They increase the negative impacts of potentially hazardous supply chain situations. c. They are critical to the satisfaction of both company and societal interests. d. They are formed when the magnitude of a supply chain dilemma is of little consequence to a company.

c. They are critical to the satisfaction of both company and societal interests.

Test marketing is very expensive. As a result which of the following is true of some companies? a. They go for a national introduction than an expensive test market. b. They mandatorily test market line extensions of well-known brands. c. They do not test market line extensions of well-known brands to save costs. d. It is better to have a large-scale test market that is decidedly affordable.

c. They do not test market line extensions of well-known brands to save costs

In a direct foreign investment arrangement, which statement is true of the direct investors? a. They possess the lowest potential risk. b. They have a small minority interest in the foreign firm. c. They have the highest potential reward. d. They do not have a controlling interest in the firm.

c. They have the highest potential reward.

Which of the following describes laggards? a. They have the longest adoption time and the highest socioeconomic status. b. They have the shortest adoption time and the lowest socioeconomic status. c. They have the longest adoption time and the lowest socioeconomic status. d. They have the shortest adoption time and the highest socioeconomic status.

c. They have the longest adoption time and the lowest socioeconomic status.

Which of the following is true of nontraditional channels? a. They increase a brand's coverage in the market. b. They are used to sell stolen or counterfeit products.. c. They may help differentiate a firm's product from the competition. d. They lead to competition between distribution channels through cannibalization.

c. They may help differentiate a firm's product from the competition.

Which of the following represents the thinking behind single-line specialty discount stores such as Foot Locker? a. They sell overruns, irregular merchandise, and/or overstocks purchased from manufacturers at or below cost. b. They specialize in a single line of merchandise and become the dominant retailer in their category. c. They offer a nearly complete selection of merchandise within a single product category and use self-service, discount prices, high volume, and high turnover to their advantage. d. They sell items from a full-line discount stock to customers who are drawn in primarily by the food on sale.

c. They offer a nearly complete selection of merchandise within a single product category and use self-service, discount prices, high volume, and high turnover to their advantage.

By synchronizing supply and demand, a service provider can reduce the problem of ______. a. heterogeneity b. intangibility c. perishability d. inseparability

c. perishability

When advertising a test product, should test locations in particular markets be isolated from media with a far reach, such as television? a. Yes, if media advertising persuades consumers in the market area, the product may then appear more successful than it really is. It would be an advertising success, not a product success. b. No, if media advertising cannot reach outside that particular market, it will fail to project the product's true potential outside the market and thus the product may then appear less successful than it could be. c. Yes, if media advertising reaches a very large area outside that market, it may pull in many consumers from outside the market being tested and thus the product may then appear more successful than it really is. d. No, if media advertising cannot reach consumers within the market area being tested, it may fail to pull in many consumers from the market and thus the product may then appear less successful than it could be.

c. Yes, if media advertising reaches a very large area outside that market, it may pull in many consumers from outside the market being tested and thus the product may then appear more successful than it really is.

Three-dimensional printing (3DP) is also referred to as ______ manufacturing. a. postponed b. offshore c. additive d. flexible

c. additive

The PLC for a brand that was the first and last competitor in a product form market is ______. a. shorter than that of the product form b. said to be zero or nil c. as long as that of the product form d. longer than that of the product form

c. as long as that of the product form

The final stage in the new-product development process is ______. a. development b. business analysis c. commercialization d. test marketing

c. commercialization

Sales and operations planning is a procedure a. That seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior. b. That presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced. c. companies use to combine production and demand by merging diplomatic and strategic planning methods across functional areas of the business. d. None of these.

c. companies use to combine production and demand by merging diplomatic and strategic planning methods across functional areas of the business.

A relatively inexpensive item that merits little shopping effort is called a(n) ______________. a. unsought product b. shopping product c. convenience product d. industrial product

c. convenience product

Currency markets operate under a system of _____, which is a system in which the prices of different currencies move up or down based on the demand for and the supply of each currency. a. contract manufacturing b. countertrade c. floating exchange rates d. dumping

c. floating exchange rates

According to the concepts of specialization and division of labor, breaking down a complex task into smaller ones and assigning these to specialists creates ______. a. lower efficiency but lower average production costs b. greater efficiency but higher average production costs c. greater efficiency and lower average production costs d. lower efficiency and higher average production costs

c. greater efficiency and lower average production costs

Henry, a travel consultant, treats his customers with respect and helps them with the vast knowledge that has earned him a good reputation. However, he is not as skilled in giving individual attention to customers or in anticipating and understanding their priorities. Henry scores ______. a. low on assurance but high on empathy b. high on both assurance and empathy c. high on assurance but low on empathy d. low on both assurance and empathy

c. high on assurance but low on empathy

Your insurance agent provides you with a service that includes ______. a. mental stimulus processing, but not information processing b. both mental stimulus processing and information processing c. information processing, but not mental stimulus processing d. neither mental stimulus processing nor information processing

c. information processing, but not mental stimulus processing

A U.S. licensor will be most successful at maintaining effective control over licensees and preventing them from voiding the contract by: a. using lawyers from both countries to write the licensing agreement. b. insisting that all licensees have a published code of ethics. c. locally registering patents and trademarks. d. receiving all the revenue earned by the licensees.

c. locally registering patents and trademarks.

Mezzah Bros., a video store that sells DVDs and entertainment publications, stores its products in separate warehouses. Moreover, it uses different modes of transportation to deliver them to customers. This scenario illustrates the _____ functions of Mezzah Bros. a. research b. transactional c. logistical d. financing

c. logistical

The technology involved in RFID (Radio Frequency Identification) has traditionally been used to ______. a. conduct market surveys to help redistribution across geographies b. track items that customers pick up during the course of their shopping c. manage inventory prior to items reaching the sales floor d. create instant promotion for the specific item in a customer's hand

c. manage inventory prior to items reaching the sales floor

IndigBlue Inc., a distributor of audio equipment, component parts, and supplies, takes title to all its products. It operates a few warehouses where it stores the finished goods and reships them to its clients, resellers, and other vendors. IndigBlue Inc. is an example of a ____. a. broker b. retailer c. merchant wholesaler d. sales agent

c. merchant wholesaler

Nonprofit organizations differ from profit organizations in that nonprofit organizations a. give priority to developing those market segments that are most likely to respond to particular offerings. b. target the niches that may be most profitable. c. must often target those who are apathetic about or strongly opposed to receiving their services. d. compete with, rather than complement, the efforts of others.

c. must often target those who are apathetic about or strongly opposed to receiving their services.

Samsung is best known for its smartphones, tablets, and televisions. Years ago when it decided to expand its business activities and operations into ship building and military hardware, it was gearing to offer ______. a. repositioned products b. new-to-the-world products c. new product lines d. discontinuous innovations

c. new product lines

Gypsy Foods Inc. is a multinational food and beverage company. Its product labels are colorful and project the words "new" and "improved" along with the product's name. The packages do not provide many details about the product's ingredients. In this case, Gypsy Foods is using _____. a. informational labeling b. descriptive labeling c. persuasive labeling d. grade labeling

c. persuasive labeling

A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products is called ______. a. idea screening b. commercialization c. product development d. niche marketing

c. product development

Product line depth refers to the number of: a. competitors present in the market for a particular product line. b. product lines that an organization offers. c. product items in a product line. d. market segments a firm is willing to target or serve.

c. product items in a product line.

A _____ occurs when a company's management decides to add products to an existing product line to compete more broadly in the industry. a. product line reeling b. product line contraction c. product line extension d. product line classification

c. product line extension

All products that an organization sells constitute its ______________. a. product mix width b. product line depth c. product mix d. product line

c. product mix

Lily's Apparel, a renowned apparel store, focuses on Generation Y customers and provides them with a customized clothing experience. Lily's Apparel has defined its target market by _____. a. educational qualifications b. religious convictions c. psychographic characteristics d. geographic boundaries

c. psychographic characteristics

Gross margin is how much the retailer makes as a percentage of ______. a. the cost of all goods after the profit is subtracted b. sales after the discount on the goods sold is added c. sales after the cost of the goods sold is subtracted d. profit after the discount on the goods sold is subtracted

c. sales after the cost of the goods sold is subtracted

Evaluating the quality of services before making a purchase is harder than evaluating the quality of goods because, compared to goods, services tend to exhibit fewer ______ qualities. a. experience b. intangible c. search d. credence

c. search

Insurance claims are an example of ______. a. separation between payers and users in the nonprofit sector b. below-cost pricing in the profit sector c. separation between payers and users in the profit sector d. below-cost pricing in the nonprofit sector

c. separation between payers and users in the profit sector

Grand Trunk Inc., a furniture manufacturing company, does not manufacture any pieces until an order is received. It coordinates and integrates the activities of its suppliers, designers, and carpenters to ensure an efficient production cycle. This enables Grand Trunk Inc. to deliver the products to customers within five working days. This is an example of _____ management. a. asset lifecycle b. returns c. supply chain d. customer relationship

c. supply chain

When predicting or explaining the rate of acceptance and diffusion of a new product, the degree to which it can be sampled on a limited basis is its ______. a. observability b. complexity c. trialability d. compatibility

c. trialability

It could be said that, at least from a marketing perspective, it is harder to convey the advantages of adopting a plastic-free lifestyle, than it is to sell the idea of having a microwave oven. This sentiment indicates that the benefit strength of many nonprofit offerings is quite ______. a. strong but indirect b. strong and direct c. weak or indirect d. weak but direct

c. weak or indirect

Which of the following statements is true of supply chain management in today's marketplace? a. Supply chain management reflects a completely employee-driven management philosophy. b. Companies that focus on supply chain management commonly report high inventory costs. c. Businesses focus on partnering with members of the supply chain to enhance customer value. d. Standardized products are "pushed" down through marketing channels to consumers.

c. Businesses focus on partnering with members of the supply chain to enhance customer value.

Which of the following refers to private label manufacturing by a foreign company? a. Joint venture b. Direct foreign investment c. Contract manufacturing d. Licensing

c. Contract manufacturing

When making an ethical decision, if there is strong consensus among coworkers that an action may bring harm to others, which of the following is most likely to occur? a. Fewer people will be affected by the negative outcome. b. Fewer individuals inside and outside the organization will be affected by the outcome of the action. c. It is more likely that marketers will recognize that behavior as unethical. d. It is more likely that the action will not result in a negative outcome.

c. It is more likely that marketers will recognize that behavior as unethical.

Which of the following is true about an implied warranty? a. An implied warranty gives a guarantee of quality in the form of a simple statement. b. Implied warranty documents can be written in technical language guaranteeing complete satisfaction. c. An implied warranty is a written guarantee. d. All sales have an implied warranty under the Uniform Commercial Code.

d. All sales have an implied warranty under the Uniform Commercial Code.

Which of the following ethical theories first identifies an ethical dilemma and then draws a comparison with other similar dilemmas and prior experiences to reach the best possible solution? a. Moral relativism theory b. Deontological theory c. Utilitarian ethical theory d. Casuist ethical theory

d. Casuist ethical theory

Which of the following represents a business's concern for society's welfare? a. Moral relativism b. Preconventional morality c. Opportunism d. Corporate social responsibility

d. Corporate social responsibility

Which of the following is true of multichannel marketing? a. It becomes difficult to identify which channel is responsible for discrepancies in the inventory. b. Customer products are sold through distribution channels. c. Multichannel marketing creates a main channel that acts as the sale and profit center. d. Customers are offered information, goods, services, and/or support through one or more synchronized channels.

d. Customers are offered information, goods, services, and/or support through one or more synchronized channels.

Which of the following people is MOST likely to disapprove of unethical practices more strongly than the others? a. Sarah, who is a manager at an organization that does not provide guidelines for ethical behavior b. Jason, an editor, who has noticed that all his managers agree that it is okay to plagiarize a small amount of content occasionally c. Rebecca, who has noticed that most of her colleagues often use office supplies for personal use d. David, who has noticed for the first time that a colleague misrepresented data in a report

d. David, who has noticed for the first time that a colleague misrepresented data in a report

Hakimo Corp., a manufacturer of audio equipment, has developed a unique wireless speaker system that runs on solar power. The speakers can operate for 16 hours after being exposed to the sun for 2 hours. This product, which is radically different from anything available in the market, falls into which category of new products? a. New and improved products b. Repositioned products c. Revised products d. Discontinuous innovations

d. Discontinuous innovations

Which of the following is true about the different stages of business development of a multinational corporation? a. In the second stage, companies operate in one country and sell into others. b. The top executives and core corporate functions of a multinational corporation operate in the same country. c. The third stage has evolved primarily due to the Internet and involves mostly high-tech companies. d. In the third stage, multinationals operate an entire line of business in another country.

d. In the third stage, multinationals operate an entire line of business in another country.

Which form of distribution is aimed at maximum market coverage? a. Selective distribution b. Narrow distribution c. Exclusive distribution d. Intensive distribution

d. Intensive distribution

Which statement accurately describes an outcome of acquiring and analyzing big data? a. It will replace human reasoning with slower but more accurate decision making. b. It will result in decision making that is based on intuition rather than actual information. c. It will accomplish repetitive tasks with significant precision but at a higher cost than human number crunching. d. It can be used to make decisions about automating supply chain processes, thus replacing human labor.

d. It can be used to make decisions about automating supply chain processes, thus replacing human labor.

Which of the following statements is true of big data analytics? a. It analyzes customers' needs based on their proximity to a retail store. b. It allows customers to evaluate the service quality offered by retailers. c. It focuses on understanding the behavior of a brand's target customers. d. It enables retailers and suppliers alike to gain better customer insights.

d. It enables retailers and suppliers alike to gain better customer insights.

Besides its high cost, what is the other possible problem that test marketing is likely to face? a. The actions of competitors countering the test market may contribute to normalizing conditions that the testing firm might expect in the market. b. Consumers may perceive the sales promotion, pricing, or advertising campaign as overzealous hard sell or even unfair trade practices. c. The product's success may present a threat to other product extensions recently introduced by the company and thus spread its customers thin. d. It exposes the new product and its marketing mix to competitors before its introduction. Thus, the element of surprise is lost.

d. It exposes the new product and its marketing mix to competitors before its introduction. Thus, the element of surprise is lost.

Which of the following statements is true of a code of ethics? a. It is most effective when presented in a long list of dos and don'ts. b. It applies to top managers of an organization rather than its employees. c. It is typically drafted by government agencies. d. It is an effective internal control of behavior.

d. It is an effective internal control of behavior.

Which of the following statements is true of a specialty product? a. It is unknown to a potential buyer or a known product that the buyer does not actively seek. b. It is easily substituted with products that have the same features. c. It is widely distributed in a geographic area so that sufficient quantities can be sold. d. It is marketed using selective, status-conscious advertising to maintain its exclusive image.

d. It is marketed using selective, status-conscious advertising to maintain its exclusive image.

When developing new product, which is true of a new-product development strategy? a. It refrains from adopting ideas suggested by customers and competitors. b. It involves targeting existing products at new markets. c. It doesn't provide the general guidelines for new-product ideas. d. It must be compatible with the objectives of the marketing department, the business unit, and the corporation.

d. It must be compatible with the objectives of the marketing department, the business unit, and the corporation.

Which ethical theory does not believe in absolute rules and states that during an ethical dilemma, a person makes the most appropriate decision by considering all the alternatives and choosing the lesser among evils as the resolution? a. Act utilitarianism b. Rule utilitarianism c. Casuist ethical theory d. Moral relativism

d. Moral relativism

The owners of Vogue, an apparel store based in California, want to expand the store's business all over the world. In this case, which of the following strategies can help the owners of Vogue achieve their objectives? a. Standardizing the size of apparel b. Acting as an export broker c. vending in physical stores. d. Opening an e-commerce site

d. Opening an e-commerce site

Which of the following refers to a type of package labeling that focuses primarily on a promotional theme or logo and consumer information is secondary? a. Packaged labeling b. Greenwashing c. Informational labeling d. Persuasive labeling

d. Persuasive labeling

Which of the following correctly defines co-branding? a. The exclusive right to use a brand or part of a brand b. Marketing several different products under the same brand name c. A trademark for a service d. Placing two or more brand names on a product or its package

d. Placing two or more brand names on a product or its package

What kind of a service process does an electrical maintenance worker provide? a. Mental stimulus processing b. Information processing c. People processing d. Possession processing

d. Possession processing

Which of the following describes a for-profit rather than a nonprofit? a. Complement, rather than compete with, the efforts of others. b. Adopt undifferentiated strategies by default. c. Target those who are apathetic about receiving their services. d. Prioritize market segments most likely to respond to their offerings

d. Prioritize market segments most likely to respond to their offerings

Laelle Airlines, an international airline company offers a core service supported by supplementary services. Given this information, which of the following is most likely to be the core service provided by Laelle Airlines? a. Providing personalized toiletries including wet towels and sleep masks for all passengers b. Offering three-course meals for its passengers c. Offering souvenirs to all passengers after their travel d. Providing plush seats with comfortable legroom for its passengers

d. Providing plush seats with comfortable legroom for its passengers

Which model suggests that corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities that are built upon a firm's economic performance? a. Social control b. Act utilitarianism c. Behavioral norms of corporate social responsibility d. Pyramid of corporate social responsibility

d. Pyramid of corporate social responsibility

Which of the following is a consequence of the heterogeneity of services? a. No matter where, the customer knows exactly what is offered and what to expect. b. Standardization and training prove to be invariably futile or unreliable. c. Consistency and quality control of services can be easily achieved. d. Services are perceived as less standardized and uniform than goods

d. Services are perceived as less standardized and uniform than goods

Which of the following ethical theories states that it is an organization's social responsibility to pay attention to the interest of every affected stakeholder in every aspect of an organization's operation? a. Deontological theory b. Moral relativism theory c. Casuist ethical theory d. Stakeholder theory

d. Stakeholder theory

Stone Restaurant, a five-star restaurant, changes its centerpiece, such as candles and vases, every day. The waiters also creatively fold the napkins and place them on the tables at the end of each course. In this scenario, which of the following promotion strategies is adopted by Stone Restaurant? a. Using personal information sources b. Engaging in postpurchase communication c. Creating a strong organizational image d. Stressing tangible cues

d. Stressing tangible cues

Which of the following refers to the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time? a. Opportunism b. Social regulations c. Philanthropy d. Sustainability

d. Sustainability

_____ was founded in 1945, one year after the creation of the World Bank, to promote trade through financial cooperation and eliminate trade barriers in the process. a. The European Union (EU) b. The North American Free Trade Agreement (NAFTA) c. The World Trade Organization (WTO) d. The International Monetary Fund (IMF)

d. The International Monetary Fund (IMF)

Which of the following statements is true of the deontological theory and the utilitarian ethical theory? a. The deontological theory considers the welfare of the people, while the utilitarian ethical theory does not. b. The deontological theory states that the truth of a moral judgment is relative to the judging person or group, while the utilitarian ethical theory is a character trait valued as being good. c. The deontological theory compares a current ethical dilemma, while the utilitarian ethical theory is a belief in time-and-place ethics. d. The deontological theory states that people should adhere to their duties when analyzing an ethical dilemma, while the utilitarian ethical theory is founded on the ability to predict the consequences of an action.

d. The deontological theory states that people should adhere to their duties when analyzing an ethical dilemma, while the utilitarian ethical theory is founded on the ability to predict the consequences of an action.

Which of the following is true when choosing a marketing channel? a. The less standardized a product is, the longer its distribution channel can be, although the greater number of intermediaries that can be involved will drive up costs. b. The more standardized a product is, the longer its distribution channel can be, although the greater number of intermediaries that can be involved will drive up costs. c. The less standardized a product is, the longer its distribution channel can be and the greater the number of intermediaries that can be involved without driving up costs. d. The more standardized a product is, the longer its distribution channel can be and the greater the number of intermediaries that can be involved without driving up costs.

d. The more standardized a product is, the longer its distribution channel can be and the greater the number of intermediaries that can be involved without driving up costs.

Which statement is true of agents and brokers? a. They often determine the terms of the sale. b. They take title to the goods and services they market. c. They get the same fee, regardless of sales volume. d. They represent manufacturers' products to potential customers.

d. They represent manufacturers' products to potential customers.

Eve Aura, a manufacturer of bath and beauty products, predominantly sells convenience products. Given this information, which is a characteristic of Eve Aura's products? a. They are bought very rarely by consumers. b. They will be more expensive than shopping products. c. They are purchased after more planning effort than specialty products. d. They require wide distribution in order to sell sufficient quantities.

d. They require wide distribution in order to sell sufficient quantities.

Which responsibility among the 4 components of the pyramid of corporate social responsibility acts as the foundation for the other three responsibilities. a. To be a good corporate citizen. b. To obey the law. c. To do what is meticulous. d. To make profits.

d. To make profits.

A brand that obtains at least one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data is called ____________. a. brand equity b. a brand mark c. a local brand d. a global brand

d. a global brand

When evaluating service quality, _____ refers to the knowledge and courtesy of employees and their ability to convey trust. a. heterogeneity b. responsiveness c. tangibility d. assurance

d. assurance

One risk of executing a store promotion that results in brand cannibalization is that the promotion could ______. a. create inaccurate sales forecasts for the promoted product and none for the cannibalized products. b. create accurate sales forecasts for the promoted product and none for the cannibalized products. c. increase the accuracy of the sales forecasts for both the promoted and cannibalized products. d. create inaccurate sales forecasts for both the promoted and cannibalized products.

d. create inaccurate sales forecasts for both the promoted and cannibalized products.

When considering a product's characteristics and the rate of adoption, complexity refers to the degree to which a new product is ______. a. consistent with existing values b. perceived as superior to existing substitutes c. available to be tried on a limited basis d. difficulty to understand and use the new product

d. difficulty to understand and use the new product

Nozzle is a specially designed product that retro fits into your existing water faucet and atomizes the water stream in a spray that lets you use 98% less water when washing hands, brushing teeth, and washing produce or dishes. Some consider this a game changer for environmental protection, especially in regions of water scarcity. This product would fall in the new product category of _____. a. an addition to exisiting product lines b. revised products c. repositioned products d. discontinuous innovations

d. discontinuous innovations

In test marketing, the greatest danger is in choosing a test-site city that ______. a. is unique in being representative of the entire city, although it is unlike neighboring cities b. does not respond quickly to changing trends and is highly entrenched in its cultural ways c. has a racial mix and thus has more diversity than other cities in the projected market area d. does not reflect market conditions in the new product's projected market area

d. does not reflect market conditions in the new product's projected market area

Developing long-term sources of clean water to improve health and preserve local ecosystems while creating a competitive advantage is an example of: a. social sustainability. b. economic sustainability. c. physical sustainability. d. environmental sustainability.

d. environmental sustainability.

A credit card company has a policy wherein the customer earns a point for every 20 dollars spent on purchases made using the card. These points accumulate over a period of time and can be cashed in at the rate of a dollar per point. The policy applies equally to all customers across the country and the company does not interact with individual customers. This is an example of the ______ level of relationship marketing. a. structural b. social c. customization d. financial

d. financial

Henry runs Moonlight Café, a world-renowned, fast-food restaurant, in his locality. He started the restaurant after getting a license from Moonlight Café and by regularly paying a fee for the right to use its brand name, products, and methods of operation. Henry most likely operates a(n) _____. a. warehouse club b. chain store c. independent retail store d. franchise

d. franchise

Marketing that aims at markets across the world is called _________. a. regional marketing b. outsourcing c. inshoring d. global marketing

d. global marketing

An unwritten guarantee that the good or service is fit for the purpose for which it was sold is called a(n) ______________. a. express warranty b. committed warranty c. oral warranty d. implied warranty

d. implied warranty

Dumping may result from all of the following exporter business strategies EXCEPT: a. trying to increase an overseas market share. b. temporarily distributing products in overseas markets to offset slack demand in the home market. c. attempting to maintain stable prices during periods of exchange rate fluctuations. d. increasing unit costs by exploiting large-scale production.

d. increasing unit costs by exploiting large-scale production.

GE has been in the news lately for _____, or bringing back the production of GE appliances to its Louisville, Kentucky plant from China. a. insourcing b. importing c. offshoring d. inshoring

d. inshoring

Wildside Inc., a company that organizes wildlife tours, gives equal importance to customers and employees. The managers at Wildside Inc. ensure that the employees of the company are satisfied with their jobs. They believe that the employees should be kept happy as they are the brand ambassadors of the company. This scenario is an example of _____ marketing. a. unsegmented b. niche c. external d. internal

d. internal

Jason bought his first color television set after flat screen televisions were already widely diffused. He is most likely to be one among the ______. a. early adopters b. early majority c. late majority d. laggards

d. laggards

Companies that focus on supply chain management commonly report ______. a. lower revenues b. higher packaging costs c. lower logistical flexibility d. lower warehousing costs

d. lower warehousing costs

Shopper marketing has significant implications for retailers' supply chains, which must react more quickly to customer demand changes as instore initiatives become ______. a. more unique and short-term and products become more standardized b. more unique and long-term and products become more customized c. less unique and short-term and products become more customized d. more unique and short-term and products become more customized

d. more unique and short-term and products become more customized

A __________ strategy occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets. a. capital-intensive b. global c. multinational d. multidomestic

d. multidomestic

General Motors recently built a plant in Toluca, Mexico, leading to a 40 percent savings on production costs when transportation and labor costs were considered together. This is an instance of ______. a. exclusive distribution b. contract logistics c. supply chain orientation d. nearshoring

d. nearshoring

Khokho's Coffee House was the first company to introduce flavored coffee in the global market. It blends coffee in several different flavors, such as blueberry, cinnamon, and cranberry, based on the flavors each country prefers. In this scenario, Khokho's Coffee House is involved in _____. a. product adaptation b. global marketing standardization c. promotion adaptation d. product invention

d. product invention

Dunchen Moo, a manufacturer of dairy products, sells evaporated milk, flavored whipped cream, and yogurts. It markets a number of yogurts, including Dunchen All Natural, Dunchen Fruit on the Bottom, Dunchen Light & Fit, DunActive, and Dun-o-nino. The large variety of yogurts sold by the Dunchen brand is collectively an example of a _____. a. product mix b. market segment c. target market d. product line

d. product line

Three Arrows Inc. is a company that manufactures paper bags from recycled paper. Its marketers receive complaints that the bags get wet easily and tear after a few weeks of use. The company decides to respond to their customers' complaints by using a thicker, waterproof paper. This is an example of _____. a. functional modification b. planned obsolescence c. product placement d. quality modification

d. quality modification

Four consumers each want to buy a refrigerator. Without a retail intermediary like Best Buy, fridge manufacturers Walton, Sub-Zero, Bosch, Kenmore, and General Electric would each have to make four contacts to reach the four consumers who are in the target market, for a total of twenty transactions. But when Best Buy acts as an intermediary between the producer and consumers, each producer needs to make only one contact, reducing the number to nine transactions. This is an example of a ______. a. retailer using contract logistics b. manufacturer using additive manufacturing c. manufacturer offering exchange utility d. retailer offering contact efficiency

d. retailer offering contact efficiency

Social networking sites such as Facebook, Instagram, and Twitter enable users to immediately purchase items recommended by their social connections, a phenomenon known as ______. a. e-tailing b. sharing economy c. microtargeting d. social shopping

d. social shopping