Marketing Test Ch 20, 13, 9, & 16

a. (True)

'Zone of tolerance' refers to the difference between desired level and acceptable level of service quality that customers expect to receive. a. True b. False

e. (import tariff)

A duty levied by a nation on goods bought outside its borders and brought inside is called a(n) _____________ a. exchange controls b. embargo c. quota d. export tariff e. import tariff

d. (specialty retailers)

A narrow product mix with a deep product line would most likely be carried by ________________ a. mass merchandisers b. supermarkets c. discount stores d. specialty retailers e. warehouse showrooms

b. (False)

A retailer is an organization that purchases products for the purpose of reselling them to the other retailers. a. True b. False

b. (False)

Barter is the oldest form of exchange, but does not exist in current marketplace. a. True b. False

0.5; inelastic

Carmike Stadium increased the price of a movie by 16 percent and, as a result, experienced a 8 percent decline in sales. The value of price elasticity is ________________, so that Carmike's demand would be ______________.

b. (adapting marketing strategy and marketing mixes according to cultural, regional, and national differences)

Customization of international marketing involves a. developing a set of marketing strategies for the entire world or major regions of the world. b. adapting marketing strategy and marketing mixes according to cultural, regional, and national differences c. exporting goods and services to foreign countries d. creating value and exchanging value between countries e. locating operations or subsidiaries in many countries

b. (False)

Demand depends only on the price of the product. a. True b. False

a. (quantity demanded goes down)

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the _________________. a. quantity demanded goes down b. demand remains constant c. quantity demanded increases d. demand increases e. breakeven increases

b. (False)

If a product has an inelastic demand and the manufacturer raises its price, total revenue will decrease. a. True b. False

b. (False; should be perishability)

If the concert tickets are not sold, seats will remain empty and they can never be sold to anyone again. This is an example of intangibility among characteristics of services. a. True b. False

c. (make profits)

Immediately after the breakeven point, a firm starts to a. lose revenue. b. experience losses. c. make profits. d. decrease volume. e. reduce costs.

Category Killer

Out of a specialty retailer, ____________________ compete primarily on the basis of low prices and enormous product availability, and Best Buy, PetSmart, and Staples are all examples of ___________________.

a. (True)

Outsourcing refers to the practice of contracting noncore operations or jobs from internal production within a business to an external entity that specializes in that operation. a. True b. False

a. (True)

Price elasticity refers to the measure of sensitivity of demand in relation to changes in prices. a. True b. False

d. (the generation of total revenue.)

Price is a key element in the marketing mix because it relates directly to a. the size of the sales force. b. the speed of an exchange. c. quality controls. d. the generation of total revenue. e. brand image.

b. (False)

Search quality is based on service attributes, such as taste, satisfaction, or pleasure, that can be assessed during purchase and consumption of a service. a. True b. False

b. (Strategic alliance)

Sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. The goal of the partnership is to share and to utilize their strengths. These partnerships are known as ______________. a. Trading company b. Strategic alliance c. Licensing d. Direct ownership e. Exporting

a. (trading company)

The Grummond Group buys air conditioner components in industrialized countries and sells them to business customers in developing countries where the air conditioners are assembled. Grummond is most likely classified as a(n) ________________ a. trading company b. strategic alliance c. joint venture. d. license e. importer

d. (perishability)

The fact the services cannot be inventoried and then sold at a later date is called a. intangibility b. heterogeneity c. inseparability d. perishability e. nonstorability

b. (False)

The more human labor involved with delivering a service, the greater the degree of homogeneity. a. True b. False

e. (It eliminates the need for sales personnel)

The primary advantage of automatic vending as a form of retailing is that a. It offers a low-cost, personal method of selling products b. It provides a continuous service to consumers c. Since vending machines must be serviced frequently, the products they sell are always fresh d. Vending machines require very few repairs e. It eliminates the need for sales personnel

a. (nonstore retailing)

The selling of merchandise outside the confines of actual facilities is generally called ________________. a. nonstore retailing b. direct selling c. automatic vending d. Internet marketing e. store-front sales

Assurance; Empathy

There are five elements that affect customers' perceptions of service quality. They are reliability, tangibles, responsiveness, _____________, and ______________.

a. (Word of mouth)

This type of communication is important in service promotion because of heterogeneity and the intangibility of services. a. Word of mouth b. Newspaper c. Television d. Radio e. Internet

b. (Train employees and develop standard procedures for dealing with customers)

What should marketers do to promote the consistency and reliability of their services most effectively? a. Limit the number of employees in their organization b. Train employees and develop standard procedures for dealing with customers c. Encourage employees to be creative in solving customer issues and complaints d. Perform as much of the service as possible before the customer arrives e. Require employees to be shining, happy people all day long

e. (external reference prices)

When a customer is considering the purchase of a product in a less-familiar and less-experienced product category, that individual is likely to rely more heavily on ________________. a. internal reference prices b. symbol prices c. high value products d. discounted reference prices e. external reference prices

d. (quota)

When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a(n) ________________. a. tariff b. embargo c. restrictive product standard d. quota e. balance of trade restriction

b. (False)

When choosing international franchising, it is impossible for a global company to retain control of its name and increase global penetration. a. True b. False

a. (True)

When products are introduced into on nation from another, acceptance is far more likely if there are similarities between the two cultures. a. True b. False

d. (promptness)

Which of the following is NOT a dimension of service quality? a. reliability b. tangibles c. responsiveness d. promptness e. assurance

d. (Corporate reputation)

Which of the following is NOT one of the four factors that influence service quality? a. Analysis of customer expectations b. Service quality specifications c. Management of service expectations d. Corporate reputation e. Employee performance

d. (Airline tickets for vacation travel)

Which of the following products is most likely to have an elastic demand curve? a. Gasoline b. Electricity c. Salt d. Airline tickets for vacation travel e. A textbook required for a course

c. (Trading companies)

__________ link buyers and sellers in different countries and are not involved in manufacturing process. a. Franchisees b. Licensors c. Trading companies d. Import specialists e. Trade regulators

Cultural relativism

_____________ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.