BUS 346 Study Guide
Price elasticity =
= % change in demand/% change in price
A recent poll conducted by Time magazine found that 38 percent of U.S. consumers A. actively tried to purchase from companies they considered responsible. B. didn't care if a company acted responsibly. C. were concerned with social responsibility, but not the ethical behavior of a company. D. purchased from companies they perceived to be ethical or not ethical equally. E. had no idea if the companies they purchased from were responsible.
A
A wholesaler is an example of a A. reseller. B. merchandiser. C. reference group. D. manufacturer. E. retailer.
A
After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage in brainstorming and evaluation of alternatives. __________ then review and refine these alternatives, and choose a course of action. A. Managers B. The firm's lawyers C. Key customers D. Community leaders E. All stakeholders
A
Americans often equate bigger with better, and prefer larger cars, TV screens, homes, even meals. Researchers suspect that in doing so, we are trying to reduce __________ risk in the consumer decision process. A. psychological B. financial C. performance D. social E. physiological
A
An online retailer needs to be able to measure how well its website converts purchase intentions into actual purchases. This is known as the A. conversion rate. B. collection ratio. C. consumer index. D. customer total. E. buyer quotient.
A
André was afraid his new condominium would look shabby to his future in-laws, so he had it painted just before their visit. André was addressing his __________ risk. A. social B. financial C. performance D. psychological E. physiological
A
Because services like cruises and car rentals are perishable, many marketers use A. pricing strategies to match supply with demand. B. service quality to extend the life of the product. C. incentives to encourage staff to deliver according to standards. D. training to standardize delivery. E. machines to replace people for standard transactions.
A
Compared to mass media advertising, a key advantage of direct marketing is that A. it allows for personalization of the message. B. it reaches a larger audience. C. it involves face-to-face contact. D. it uses the rule-of-thumb budgeting method. E. it is used almost exclusively for B2B marketing. Direct marketing can be easily personalized to each consumer
A
Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that A. countries with high purchasing power today may not continue to show the same growth in the future. B. the United States and Western Europe will have dramatic increases in population growth leading to overcrowding. C. the middle class in India will continue to shrink as the rich get richer and the poor get poorer. D. urban population centers will become increasing unattractive and the rural areas will experience major growth in population. E. the global population is expected to grow at staggering rates indefinitely.
A
Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on A. a demand curve. B. the law of averages. C. multiple regression analyses. D. target return strategies. E. a sales orientation.
A
Earl was known for driving 30 miles to save a dollar on the price for his favorite beverage. Earl perceived price as ________________, while most consumers recognize price as the ______________ made to acquire a good or service. A. money paid; overall sacrifice B. variable cost; fixed cost C. fixed cost; variable payment D. overall sacrifice; monetary payment E. break-even amount; price elasticity
A
Economic measures like GDP and GNI do not fully account for a country's economic health because they only measure A. material output. B. international trade. C. global expectations. D. purchasing power parity. E. poverty potential.
A
Facebook is the only social networking site Jana uses. She spends about half an hour a day there staying in touch with her children, her grandchildren, and several friends she has known since high school. What segment of social networking users does Jana belong to? A. bonders B. creators C. listeners D. professionals E. sharers
A
Frieda has just received a major order from Northrop Corporation for her firm's hydraulic lift equipment. After reviewing the order information, Frieda will A. send an acknowledgement that the order has been received. B. rewrite her firm's proposal. C. submit a competitive bid. D. proceed to vendor analysis. E. evaluate performance.
A
Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the Framework for Ethical Decision Making, the first thing Garrett should do is to A. identify issues that need to be addressed. B. promote the firm's corporate social responsibility efforts. C. gather information and identify stakeholders. D. brainstorm and evaluate alternatives. E. choose a course of action.
A
Gene's Complete Cameras offers its customers an interactive website to help them choose the best camera for their lifestyle. But the site's most-used feature is its user blog in which customers—both satisfied and unsatisfied—talk about products they have purchased and the service received at Gene's. The user blog best describes which of the 4E frameworks for the store's customers? A. Engage B. Energize C. Excite D. Experience E. Educate
A
Generally, when advertising to consumers, the objective of an advertising campaign is A. a pull strategy—to get the product into stores by having consumers demand it. B. a push strategy—to stimulate interest among members of the supply chain. C. to win advertising awards. D. to offset sales promotion costs. E. to maximize media planning.
A
If the price for a product increases, the demand for the complementary product will A. decrease. B. increase. C. stay the same. D. become more elastic. E. become more inelastic.
A
In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process? A. sender B. transmitter C. encoder D. channel E. receiver
A
In the IMC process, noise can occur as a result of lack of message clarity, a poor choice of medium, or A. competing messages. B. an extended feedback loop. C. indirect encoding. D. inhibited decoding. E. excessive reach.
A
In the early stages of an ad campaign, the objectives are established. To determine whether those objectives have been met, the marketer will A. posttest. B. conduct feedback analysis. C. initiate content analysis. D. conduct tracking. E. arrange for peer analysis.
A
Jonathan prefers shirts made with 100% cotton, but he will sometimes buy shirts with less cotton if they are less expensive. Jonathan uses __________ to decide which shirts to buy. A. a compensatory decision rule B. a noncompensatory decision rule C. habitual decision making D. social factors E. temporal factors
A
Judy knows it is important to approach business buyers at the right time, which is often during the first stage of their buying process. She stays in touch with her customers, hoping to find out when they are going through A. need recognition. B. the RFP process. C. proposal analysis. D. vendor negotiation and selection. E. product specification.
A
Julia wants her firm's gourmet snacks to be the leading brand in the U.S. market. When adopting a pricing strategy designed to gain market share, she should remember that A. rarely is the lowest-price offering the dominant brand in a market. B. prestige products need to be competitively priced. C. companies can gain market share by offering low-quality products at a high price. D. total value equals total cost minus variable costs leading to price escalation. E. price wars are the way to become the dominant brand.
A
Lauren decides to use Twitter to market her hand-painted scarves to other women on her campus. She sets up a Twitter account with the name @uniquedesignsbylauren, and posts this on her Facebook page, making sure to tweet every few days. Soon Lauren is selling a lot of scarves. Lauren's Twitter account is an example of A. microblogging. B. media sharing. C. thought sharing. D. professional networking. E. social bookmarking.
A
Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets. A. surplus B. deficit C. culture D. bonus E. balance
A
Marketers __________ an advertising campaign to ensure that various elements of the campaign will work in an integrated fashion and do what they are intended to do. A. pretest B. posttest C. monitor D. flight E. pulse
A
Marketers considering operations and trade with a specific country must consider whether the country belongs to a trading bloc. A trading bloc is a group of countries A. that have established a formal agreement to manage trade activities. B. using the same currency. C. with similar cultural shopping patterns. D. located next to each other. E. with similar political views.
A
One difficulty associated with using advertising as part of a marketer's IMC efforts is A. breaking through the clutter of other messages targeted for the same audience. B. that it is more expensive than personal selling. C. that it only works when communicating to the most uninformed consumers. D. that government regulations have significantly decreased allowable advertising frequencies. E. that it is considered old-fashioned by many younger consumers.
A
One problem in relying on price elasticity and demand curves when setting prices is that A. the way a product or service is marketed can have a profound impact on price elasticity. B. the underlying ideas of the demand curve and elasticity are less relevant in the modern economy. C. only economists can properly analyze demand curves and set prices using this tool. D. competitors can construct the same demand curves, so there is no advantage in using them. E. marketing split from economics over the ideas of demand and elasticity.
A
Public relations is the component of IMC that A. supports other promotional efforts by generating free media attention. B. has received the greatest increase in spending. C. converts mass media advertising into direct marketing. D. most effectively uses IMC encoding. E. generates the most gross rating points.
A
Reminder advertising is primarily used to A. prompt repurchase of a product. B. create and build brand awareness. C. accelerate market acceptance. D. gather information about consumers. E. persuade consumers to change existing perceptions.
A
Tariffs protect domestic producers by A. making imported products more expensive. B. increasing brand recognition. C. reducing the cost of production. D. offering subsidies to exports. E. avoiding regulation.
A
Tess is the marketing manager for a fast food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to A. increase profits. B. increase sales. C. decrease competition. D. build customer satisfaction. E. broaden the product line.
A
The Henry Ford Health System (a health care provider) has set strict limits for pharmaceutical representatives, and will no longer allow doctors in its system to accept free lunches, gifts, or other perks from the pharmaceutical representatives. The Henry Ford Health System probably established this policy because A. it reduces the possibility that the Henry Ford Health System might make unethical purchasing decisions. B. it ensures that the Henry Ford Health System is both ethical and socially responsible. C. it increases the Henry Ford Health System's socially responsible behavior. D. it ensures that the Henry Ford Health System is socially responsible, but not necessarily ethical. E. it was trying to save money.
A
The IMC communication process includes all of the following EXCEPT A. evaluation. B. the sender. C. the transmitter. D. the communication channel. E. the receiver.
A
The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to convey ____________, delivering the right services the right way. A. reliability B. responsiveness C. assurance D. empathy E. tangibles
A
The basic goal of integrated marketing communications is to A. communicate the value proposition to the target market. B. create desire. C. manipulate consumers. D. outspend competitors. E. tell the world about your company.
A
The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the __________ stage of the business-to-business buying process. A. vendor negotiation B. product specification C. need recognition D. vendor performance assessment E. RFP
A
The components of global market assessment include all of the following EXCEPT A. ethnic analysis. B. infrastructure and technology analysis. C. analysis of government actions. D. sociocultural analysis. E. economic analysis.
A
The execution style of an advertising message must A. match the medium and the objectives. B. correspond with globally accepted norms. C. include a minimum of puffery and maximum media buy. D. selectively pull retailers into the marketing channel. E. cover new creative ground to be effective.
A
There are five types of risks associated with purchase decisions. Which of the following best describes a situation where your new car stalls in the middle of a busy intersection? A. physiological risk B. social risk C. financial risk D. functional risk E. psychological risk
A
When Johnson and Johnson removed all Tylenol from the shelves after some containers were tampered with, poisoning and killing seven people, the company A. sacrificed short-term profits for long-term credibility. B. was forced to do so following extensive consumer outcry. C. was ordered to do so by the Food and Drug Administration. D. felt that nothing could stop Tylenol from losing most of its customers. E. developed plans to sell the returned Tylenol bottles in less developed countries.
A
When the delivery of a service fails to meet customers' expectations, a __________ gap exists. A. service B. knowledge C. standards D. production E. communication
A
Which of the following details is/are included in the order specification stage of the B2B buying process? A. prices and delivery dates B. vendor performance assessment C. the RFP D. bids for supplying the required components or parts E. vendor selection
A
Which of the following is NOT one of the roles typically played by one of the members of a buying center? A. Leader B. Initiator C. Influencer D. Decider E. Gatekeeper
A
Which of the following is the best example of a persuasive advertising message? A. "Buy now, pay later." B. "Doing business in Peoria since 1848." C. "Better than average." D. "Now available. The latest fall fashions." E. "Serving the public since last Tuesday."
A
Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico? A. NAFTA B. EU C. CAFTA D. Mercosur E. ASEAN
A
Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee? A. standards gap B. knowledge gap C. performance gap D. communication gap E. recovery gap
A
While on vacation, Martha had her camera stolen. Not wanting to waste vacation time shopping for a new camera, Martha simply purchased another camera just like her old one. For Martha the __________ was low. A. perceived benefit versus perceived cost of search B. locus of control for this decision C. determinant attribute for this decision D. universal set of camera options E. prepurchase dissonance factor
A
Zappos.com constantly reminds customers of recently viewed items and informs them when stock is low in an effort to entice the customer to make a purchase. Zappos is trying to improve its A. conversion rate. B. collection ratio. C. consumer index. D. customer total. E. culture quotient.
A
__________ are the three types of attribute sets. A. Universal, retrieval, and evoked B. University, relatives, and expression C. United, relations, and exploration D. Urban, random, and exchange E. Unanimity, rule, and express
A
A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations. A. seniority B. knowledge C. standards D. delivery E. communication
B
A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy A. leads the marketer to being the low-cost seller. B. is supported by consistent advertising and distribution strategies. C. challenges consumers to discard their perceptions of value. D. is consistent with a competitive target return strategy. E. is measured against the competition.
B
According to a typical demand curve, the higher the price, A. the greater the income effect. B. the lower the quantity consumers will buy. C. the lower the output of producers. D. the greater the production costs. E. the lower the cross-price elasticity.
B
After need recognition and product specification, many firms using the B2B buying process A. identify contract specifications. B. issue a request for proposals from invited suppliers. C. proceed to proposal analysis. D. enter vendor negotiation and selection. E. revise their need recognition analysis.
B
As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance analysis every three months. To meet this requirement, Carrie will probably A. interview vendors and seek their feedback. B. specify and weight performance factors and score the vendors. C. develop an RFP for vendor analysis. D. recruit new suppliers. E. use a modified rebuy vendor form.
B
Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Bernard's job to examine the pricing to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide Bernard's effort? A. industry-oriented B. sales-oriented C. competitor-oriented D. innovation-oriented E. customer-oriented
B
Both the B2B and B2C buying processes begin with A. central planning. B. need recognition. C. postpurchase dissonance. D. alternative evaluation. E. order specification.
B
By providing good customer service, firms __________ their products or services. A. eliminate the communication gap for B. add value to C. reduce the zone of tolerance for D. reduce the empowerment cost associated with E. increase the perishability of
B
Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget. He receives offers from a variety of advertising media, spends money on his firm's public relations efforts, and is considering electronic media alternatives. Carl must recognize that each IMC alternative A. will stand on its own. B. is part of the whole. C. is part of noncommercial free speech. D. is less important than stealth marketing. E. is dictated by the nature of the supply chain.
B
Charlie is hoping to get a chance to bid on supplying key components to Ned's business. He is eager to move forward, but he must wait until A. Ned completes vendor negotiations. B. Ned develops a list of product specifications. C. Ned's buying center has an opening. D. Ned agrees to move Charlie's firm from the evoked set to the retrieval set. E. Ned completes the order specification process.
B
Chet was struggling selling his golf photography outside a PGA event. When he offered a tee shirt with a golf photograph on it with any framed golf photo, sales picked up. Chet discovered the value of sales promotions—specifically _________—in encouraging customers to buy. A. deals B. premiums C. samples D. sweepstakes E. rebates
B
Chris is gathering information about the general economic environment in Nepal. He will look for information about the general economic environment, market size and population growth rate, and A. culture. B. real income. C. airport capabilities. D. political status. E. religious institutions.
B
Cross-price elasticity is the A. percentage change in quantity of a product demanded divided by the percentage change in its price. B. percentage change in quantity demanded of product A compared to the percentage change in price of product B. C. change in price of product A divided by change in quantity demanded for product B. D. change in quantity of a product demanded divided by the change in its price. E. change in quantity of a product demanded divided by the change in its elasticity.
B
Firms are willing to offer generous rebates because A. the retailer and manufacturer always split the cost. B. rebates increase sales, but few customers actually apply for the rebate. C. they are easier for the consumer to use than are coupons. D. rebates are the only type of sales promotion proven to affect sales. E. they tend to generate repeat customers.
B
Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that A. natural gas creates more environmental greenhouse effects than coal. B. an increase in the price of natural gas will increase demand for his electrical heating systems. C. gas heating systems and electrical heating systems are complementary goods. D. when the price of natural gas goes up, the quantity demanded also rises. E. the demand for natural gas is price elastic.
B
If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is A. cross-price elastic. B. price inelastic. C. price elastic. D. status quo elasticity. E. derived demand inelastic.
B
In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used A. to shorten supply chains. B. as a response to perceived unfair trade practices. C. to offer domestic discounts. D. to stimulate consumer demand. E. as a way to equalize quotas.
B
In most countries, __________ is one of the largest purchasers of goods and services. A. the largest retailer B. the central government C. the national airline D. the intelligence agency E. a consumer buying center
B
In recent years, the component of IMC that has received the greatest increase in spending is A. media advertising. B. direct marketing. C. public relations. D. sales promotions. E. publicity.
B
In the AIDA model, the do stage is the __________ stage. A. awareness B. action C. interest D. desire E. intentions
B
In the create advertisements step when planning and executing an ad campaign, often the execution style for the ad will A. determine the pretesting pulse of the ad. B. dictate the type of medium used to deliver the message. C. determine which push/pull strategy will accompany the ad. D. dictate how advertising will be flighted. E. deliver integrated marketing.
B
Informative advertising is used to A. prompt repurchase of a product. B. create and build brand awareness. C. trigger an emotional response. D. gather information about consumers. E. convince consumers to take action.
B
Jordana is buying a laptop computer to take on trips. Although she has looked at several brands, she refuses to buy a computer that weighs more than five pounds. Jordana is basing her decision on A. a compensatory decision rule. B. a noncompensatory decision rule. C. habitual decision making. D. social factors. E. temporal factors.
B
Lamar is assessing the long-term effectiveness of his firm's IMC efforts. He will probably analyze the firm's success in A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of his firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.
B
Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the A. shareholders. B. employees. C. customers. D. marketing managers. E. competition.
B
Peter wanted an unbiased source of information to help him decide what brand of appliances to buy for his new condominium. Peter would most likely search for information from A. the Sears catalog. B. the Consumer Reports website. C. the local Better Business Bureau. D. the website for Best Buy (an electronics retail chain). E. Psychology Today magazine.
B
Price is often the most challenging of the four Ps to manage, partly because it is often ______________ in developing marketing strategies. A. the least important aspect B. treated as an afterthought C. calculated by senior consultants D. difficult to calculate markups E. the subject of cross-shopping differentiation
B
Price is the _____________ a consumer is willing to make to acquire a specific product or service. A. amount of money B. overall sacrifice C. fixed cost D. target return E. variable cost
B
Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should A. lower their offering price for the competing firm. B. reexamine their alternatives. C. consult customers. D. trust their instincts and move forward. E. choose the least risky option.
B
Social media first began to get more professional and offer more to users A. just after its invention phase in the early 1990s. B. at the turn of the twenty-first century. C. when Apple launched the first App Store. D. in the past few years, during its entrepreneurial phase. E. in 2011-2012, when the market became flooded with smartphones.
B
The 4E framework for social media guides marketers in using social media effectively to build and deepen customer relationships. Which of the following is NOT one of the four E's in this framework? A. Engagement B. Energy C. Excitement D. Experience E. Education
B
The Big Mac Index is a novel measure of A. GDP. B. purchasing power parity. C. per capita GNI. D. economic growth. E. international trade surplus.
B
The Ethical Decision-Making Framework includes all of the following steps EXCEPT A. identify issues. B. promote the firm's corporate social responsibility efforts. C. gather information and identify stakeholders. D. brainstorm and evaluate alternatives. E. choose a course of action.
B
The IMC communication process begins with __________, who must be clearly identified. A. the integrator B. the sender C. the transmitter D. the communication channel E. the receiver
B
The chapter opening case on the fishing industry focused on what ethical dilemma? A. Fisheries are overcharging distributors for fish, which is being passed on to consumers. B. Fisheries and restaurants are substituting a less popular fish for a more popular one without the consumer's knowledge. C. Restaurants are selling more fish than ever in spite of overfishing. D. Restaurants are selling fish that are legally banned in the U.S. E. The U.S. fishing industry is selling more fish overseas in spite of increased U.S. demand.
B
The key to a successful emotional advertising appeal is to use the emotion to A. make consumers cry. B. create a bond between the consumer and the brand. C. get consumers to think about the benefits of the product. D. balance social marketing with product-focused advertising. E. deliver a logical message.
B
The most common measure of market potential of an economy is a country's A. GNI. B. GDP. C. PPP. D. CPI. E. APR.
B
The shift of population from rural to urban areas in countries such as India helps global marketers by A. decreasing pollution. B. simplifying the supply chain needed to make goods and services available. C. increasing the human development index. D. decreasing competition for intellectual capital. E. increasing nonmaterial GDP output.
B
Typically, B2B buyers ask potential suppliers to A. write the RFP for the buyer. B. submit formal proposals. C. sponsor interviews with final customers to determine product needs. D. always be involved in reselling. E. organize themselves into selling cooperatives.
B
Walmart's "Everyday low prices" selling proposition is effective primarily because it is A. unique to the industry. B. meaningful to the consumer. C. variable over time. D. a one-time message. E. generally unsustainable.
B
When Ben evaluated the commercial infrastructure in Mauritius, he considered the island's A. population control measures. B. legal, banking, and regulatory systems. C. retailing capabilities. D. per capita income estimates. E. climate and culture.
B
When Magda decided to buy a new computer, she considered all the brands she could recall seeing advertised. This represents Magda's __________ set. A. universal B. retrieval C. evoked D. deterministic E. behavioral
B
When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time. A. intangible B. inseparable C. variable D. perishable E. peripheral
B
When the floor rusted through on her old car, Kelly knew she had a problem. Logically, Kelly's next step in the consumer decision process would be to A. identify her need. B. search for information about cars. C. evaluate alternatives. D. purchase a new car. E. assess her satisfaction with the car she purchased.
B
Whenever the major beverage companies develop a new product, they advertise it heavily using television and print media. These efforts are designed to A. generate goodwill for the company. B. pull the product into retail stores through consumer demand. C. signal strategy changes to market competitors. D. make it easier to do posttesting. E. use a push strategy.
B
Which of the following is NOT one of Hofstede's cultural dimensions? A. power distance B. certainty assurance C. masculinity D. individualism E. time orientation
B
Which of the following is NOT one of the steps in the AIDA model? A. awareness B. intention C. action D. desire E. interest
B
Which of the following is the best example of a reminder advertising message? A. "Buy now, pay later." B. "Doing business in Peoria since 1848." C. "Better than the rest." D. "Now available. The latest fall fashions." E. "Serving the public since last Tuesday."
B
Which of these trade agreements represents the highest level of integration among participating nations? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA
B
__________ is when two or more firms join forces to reach a target audience in a short-term effort. A. Promotional co-branding B. Cross-promotion C. Joint-venture promotion D. Multi-target promoting E. Convenience promoting
B
_________________ measures consumers' sensitivity to price changes. A. Cross-price elasticity of demand B. Price elasticity of demand C. Income elasticity of demand D. Competitive profit elasticity of demand E. Inelastic demand price parity
B
A Groupon offer for discounted theater tickets was sent to targeted customers who had previously purchased movie or theater tickets. This best describes which of the 4E frameworks? A. Engage B. Energize C. Excite D. Experience E. Educate
C
Actress Sissy Spacek once objected to a series of movie scenes that included her smoking a certain brand of cigarettes. She was probably objecting to a __________ arrangement the film company had made with an advertiser. A. promotional deal B. mass media buy C. product placement D. loyalty program E. sampling
C
Advertising agencies often provide the IMC function of comparing their customer's target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with A. competing messages. B. lack of clarity in the message. C. a poor choice of medium. D. an extended feedback loop. E. a flaw in the medium.
C
B2B partners often connect to each other on the Internet through special __________ designed to facilitate information exchanges and transactions. A. web links B. webmasters C. web portals D. web hosts E. gatekeepers
C
Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably A. price sensitive. B. price elastic. C. price inelastic. D. income elastic. E. cross-price elastic.
C
Changes in tariffs and quotas are A. business actions stimulating imports. B. corporate strategies designed to maximize profits. C. government actions that reduce competition from international firms. D. efforts to stimulate choices among government agencies. E. a means of slowing outsourcing.
C
Cheryl asked Nadia to help her buy some aftershave for her boyfriend. Nadia was going through a list of different brand names when Cheryl stopped her and said, "I recognize that one." Marketers call this A. selective recall. B. free association. C. aided recall. D. recall mapping. E. top-of-mind awareness.
C
Cora will be a bridesmaid next summer and has purchased her dress online. When she turns on her computer again, Cora is surprised to see special offers for matching accessories. This is an example of which marketing strategy? A. sales promotions B. media advertising C. direct marketing D. personal selling E. public relations
C
During the RFP stage, B2B buyers A. recognize obstacles that the firm must work around. B. revise their need recognition analysis. C. invite suppliers to bid on supplying what is requested. D. proceed to vendor analysis. E. negotiate contract terms.
C
During the preapproach stage, a salesperson usually conducts additional research about prospects and A. assists the prospect through the buying process. B. decides what role to play during the handling reservations stage. C. develops plans for meeting with the customer. D. offers initial concessions to gain the sale. E. determines which of the customer's buying support team need to be present at the sales presentation.
C
Food preparation, lawn maintenance, and house cleaning services are all examples of A. services shifted abroad because costs are lower in developing countries. B. services an aging population will decrease their demand for. C. household maintenance activities that people increasingly pay others to perform. D. the price elasticity effect on services demand. E. the ability of empowerment to create tangible service products.
C
For which of the following is demand likely to be least sensitive to price increases? A. spring break vacations B. a specific brand of cereal C. prescription drugs D. theater tickets E. restaurant meals
C
GDP is defined as A. the value of a country's exports minus its imports. B. great domestic product. C. the market value of goods and services produced in a country in a year. D. national income minus national taxes. E. the gross purchasing power of domestic goods and services plus international income.
C
Greg is planning an advertising campaign to promote his kayak tour company. The success of his ad campaign depends on A. the quality of his kayaks. B. how much money he spends. C. how well he can identify his target audience. D. how much consumers like him. E. whether he can gain commitments from manufacturers for complementary products.
C
Hospitals, schools, and religious organizations are examples of __________ buyers. A. manufacturing B. retail C. institutional D. factory agent E. reseller
C
How did Johnson and Johnson recently respond to new limits on acetaminophen dosages? A. It changed the dosages to significantly lower levels. B. It didn't do anything and waited to see if there would be a problem with its products. C. It reminded people not to take more than the recommended dosage. D. It pulled all Tylenol products off the shelf until it could be sure it wasn't causing problems for consumers. E. It changed its packaging to reflect the new standards.
C
If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is A. cross-price elastic. B. price inelastic. C. price elastic. D. status quo elasticity. E. derived demand inelastic.
C
If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists. A. seniority B. knowledge C. standards D. delivery E. communication
C
In the movie Field of Dreams, one of the memorable phrases is, "If you build it, he will come." The AIDA model would suggest that after marketers build a product or service and create awareness among consumers, they need to A. determine the level of desire needed to sustain action. B. promote sufficiently to gain global attention. C. create interest among consumers, persuading them to investigate further. D. offer discounts to increase purchase intentions. E. take steps to encourage immediate purchase.
C
Integrated marketing communications represents the __________ P in the four Ps of a firm's marketing mix. A. pricing B. product C. promotion D. place E. partnering
C
Jacqueline was pleased to read a paraphrasing of the Golden Rule, "Do unto our customers as you would have them do unto you," as part of her new employer's mission statement. Next, Jacqueline expects to find in the firm's employee handbook A. a summary of recent Supreme Court business ethics cases. B. a statement that she needs to decide how the Golden Rule applies to her job on her own, without any influence from her employer. C. explicit rules governing all the firm's transactions. D. a list of employee concerns. E. a list of benefits offered to employees.
C
Location-based software and applications can help bring a special offer to customers right on their smartphones when they are in the process of making a purchase decision. This best represents the __________ framework of social media marketing. A. engage B. energize C. excite D. experience E. educate
C
Many years ago Honda's Accord and Ford's Taurus were the top two selling cars in the United States. As the year was coming to an end, Ford cut the price of the Taurus, hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a ___________________ pricing strategy. A. maximizing profits B. target profit C. sales orientation D. status quo E. target return
C
Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as one of the first to hear about and use new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center? A. Leader B. Initiator C. Influencer D. Decider E. Gatekeeper
C
Naomi is IMC manager for a chain of regional income tax service providers. Franchisees pay a percentage of their revenue to an IMC account allocated to her. As she establishes the short-term goals for her firm's IMC efforts, her goals are likely to include A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of her firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.
C
Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a _______________ pricing strategy. A. sales orientation B. target profit C. target return D. status quo E. competitive parity
C
Normally, BC bottling company attaches plastic labels to its bottles. However, a new company is launching a product that requires the use of fabric labels. To use this latest innovation, BC bottling company must now source these fabric labels from another company. This is an example of A. a modified rebuy situation. B. vendor analysis. C. need recognition. D. a straight rebuy situation. E. an RFP.
C
Once the marketing communication has captured the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from A. "I want it" to "I like it." B. action to desire. C. "I like it" to "I want it." D. interest to awareness. E. feeling to thinking.
C
Persuasive advertising is often used when competition A. is nonexistent. B. is cooperating. C. is most intense. D. is declining. E. is ineffective.
C
Policing potential violations of human rights and child labor laws is an important component of A. planning. B. implementation. C. the mission statement. D. control. E. social responsibility.
C
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom's engineers have been asked to provide detailed specifications and recommendations for the equipment needed. The Raycom engineers will primarily play the __________ role in the company's buying center. A. buyer B. initiator C. influencer D. user E. gatekeeper
C
Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how ____________ affects demand for products. A. the substitution effect B. the price inelasticity coefficient C. the income effect D. the target return effect E. cross-price elasticity
C
Suppose that Nike wanted to use Facebook to increase awareness of a new line of tennis shoes. Which of the following methods would allow Nike to specifically target Facebook users who have mentioned tennis in their profiles? A. Uploading a coupon to the Nike fan page B. Encouraging Facebook users to like the Nike page so their friends will see this action C. Placing a Facebook ad D. Creating a Facebook tab allowing users to view the tennis clothing within Facebook E. Placing a Facebook link on the Nike corporate website
C
The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the Ethical Decision-Making Framework, its next action should be to A. identify issues of concern to lawmakers. B. assess impact of its actions beyond the classroom. C. engage in brainstorming and evaluate alternatives. D. choose a course of action. E. evaluate the legal ramifications.
C
The additional sales that can be attributed to an advertising campaign are known as A. payload. B. impact. C. lift. D. the campaign increment. E. ROI.
C
The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to convey ____________ by guaranteeing his work in writing. A. reliability B. responsiveness C. assurance D. empathy E. tangibles
C
The greater the discrepancy between a consumer's __________, the greater the consumer's need recognition will be. A. financial risk and performance risk B. search for alternatives and alternatives found C. needy state and desired state D. universal set and evoked set E. external and internal information search
C
The greater the discrepancy between a consumer's needy state and the desired state, the greater A. time needed to satisfy the need. B. the effort consumers will invest in searching for alternatives. C. the consumer's need recognition will be. D. the size of the universal set will be. E. the amount of external information search will be needed.
C
The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Marketers call this A. the primacy effect. B. aided recall. C. top-of-mind awareness. D. category dominance. E. elevated awareness.
C
The manufacturer of Beats by Dr. Dre headphones decides to advertise in the lifestyles sections of big-city newspapers. However, this generates a limited response in sales. Which of the following represents a likely breakdown in the communication process here? A. The message was decoded incorrectly. B. The message was not transmitted. C. The message was not received by its intended audience. D. The message was encoded incorrectly. E. The sender was not clearly identified.
C
The sender of an integrated marketing communication A. must work with the advertising specialists to ensure all recipients interpret the message accurately. B. can assess the manner in which receivers interpret the message through gross rating points. C. has little control over what meaning any individual receiver will take from the message. D. controls the meaning all receivers take from the message. E. should attempt to control how the message is received.
C
The three elements of any IMC strategy are the consumer, the channels, and A. the receiver. B. the product. C. evaluation of the results. D. the company. E. event sponsorship.
C
Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and A. supply chain effectiveness. B. enhanced decoding processes. C. a consumer's purchase. D. the level of noise in the IMC channel. E. the reach/frequency ratio.
C
Traditionally, marketers have seen the role of __________ as generating short-term results, whereas the goal of __________ was to lead to long-term results. A. public relations; institutional advertising B. advertising; personal selling C. sales promotion; advertising D. advertising; public relations E. corporate blogs; public relations
C
Twitter can help to build a brand's image by educating and engaging consumers. However, one central issue for companies using Twitter is A. limiting the number of tweets per day. B. remuneration for posters. C. timely management of Twitter accounts. D. eliminating negative posts. E. confusion with similar products.
C
When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would only consider those brands she could buy at her local Best Buy electronics store. This represents Maya's __________ set. A. universal B. retrieval C. evoked D. deterministic E. behavioral
C
When firms set prices similar to those of competitors, they are following a strategy of A. me-too pricing. B. copycat pricing. C. competitive parity. D. market-broadening pricing. E. industry-standard pricing.
C
When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another. A. intangible B. inseparable C. heterogeneous D. perishable E. viable
C
When reviewing her firm's business buying process, Carla noticed a company requirement that it must have at least three qualified bids from suppliers for any purchase over $50,000. This requirement is designed to A. minimize competitive pressure. B. efficiently organize resellers. C. encourage the bidders to offer their best terms. D. foster democratic buying centers. E. slow down the purchase process.
C
While consumers evaluate their decisions and sometimes experience postpurchase dissonance, business buyers A. file lawsuits. B. evaluate organizational culture. C. conduct vendor analysis. D. prepare RFPs. E. remain dissatisfied.
C
Why should marketers be aware of the BRIC countries? A. They are a microcosm of the rest of the world. B. They represent almost half the the world's population. C. They are likely to be the source of most market growth. D. They have had the most dramatic changes in culture and consumer buying patterns. E. They have stable population growth, which makes them easier to study.
C
__________ are special incentives or excitement-building programs that encourage consumers to purchase a particular product, often used in conjunction with advertising or personal selling programs. A. B2B programs B. Trade incentives C. Sales promotions D. Push programs E. Targeted leader items
C
__________ refers to a potential customer's ability to recall that the brand name is a particular type of retailer, product, or service. A. Product familiarity B. Brand association C. Brand awareness D. Marketing recall E. Cognitive association
C
A __________ gap is the difference between the firm's service standards and the service it provides to customers. A. seniority B. knowledge C. standards D. delivery E. communication
D
A __________ is a type of reseller, a business that buys from other businesses but does not significantly alter the form of the products it buys. A. manufacturer B. producer C. consumer D. wholesaler E. factory
D
A customer orientation toward pricing implicitly invokes the concept of A. knowing the dimensions of the target market. B. positioning. C. the income effect. D. value. E. profit.
D
A major factor contributing to the growth in the use of direct marketing IMC efforts is A. reduced government regulation of deceptive advertising practices. B. expanded use of personal selling. C. a shift from objective-and-task to rule-of-thumb budgeting. D. increased use of credit and debit cards and online shopping by consumers. E. the reduction in IMC noise, allowing for a decreased lagged effect.
D
A meat packing company discovers that six months ago it unknowingly distributed meat from a cloned cow. The firm is unaware of any specific risks to humans consuming the meat; however, some scientists have raised questions, and some consumers are afraid of possible future problems. The meat company has to decide whether to make this matter public. How should it begin the process of making an ethical decision? A. Brainstorm the available alternatives. B. Ask its managers to vote for or against public disclosure. C. Let the board of directors decide what to do. D. Identify the issues raised by the situation. E. Find out who purchased the meat, and offer them refunds in return for their silence.
D
After Hurricane Katrina, many states reevaluated their coastal area building requirements. These new building codes represented __________ that building materials companies used to develop new products. A. derived demand B. initiator instructions C. determinant products D. product specifications E. focal alternatives
D
After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, __________ should engage in brainstorming and evaluation of alternatives. A. the senior managers most involved B. key customers C. elected officials D. all parties relevant to the decision E. any individuals with competing interests
D
After need recognition, a business develops __________ that suppliers might use to develop their proposals. A. derived demand B. initiator instructions C. determinant attributes D. product specifications E. focal alternatives
D
Anne's Pita Bread Chips offers free POP (point-of-purchase) displays to retailers ordering their product. Anne's is using a __________ strategy. A. pull B. puffery C. publicity D. push E. posttesting
D
Because PSAs are a special class of advertising, FCC rules require A. consumers to listen to them. B. court approval before they are aired. C. all advertisers to contribute to them. D. broadcasters to devote a specific amount of free time to them. E. they use only the informative or reminder advertising appeals.
D
Because services like airline flights and hotel beds are _________, many marketers attempt to match demand with supply using pricing strategies. A. intangible B. inseparable C. variable D. perishable E. accountable
D
Because they do so much driving while visiting doctors' offices and hospitals, pharmaceutical sales representatives are often given company cars to drive. When a pharmaceutical company like Merck is preparing to purchase new company cars, sales reps' feedback will be sought on car models and features, but the final decision will be made by higher levels of management. What role(s) do the sales reps play in the buying center? A. Users B. Initiators C. Influencers D. Users and influencers E. Users and initiators
D
Florida Heat Pump Manufacturing Company is offering a free, all-expenses-paid trip to Las Vegas for HVAC dealers that sell at least twenty units this year. Florida Heat Pump is using a __________ promotional strategy. A. pull B. puffery C. publicity D. push E. posttesting
D
For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on A. when to advertise versus when to use personal selling. B. which media are appropriate for promoting intangible services. C. which images create a better impression on consumers. D. how to gain clients while retaining an image of professionalism and integrity. E. who should be the spokesperson for professionals offering intangible services.
D
From a consumer's perspective, all of the following are interactive elements of an IMC strategy EXCEPT A. personal selling. B. consumer contests. C. mobile marketing. D. public relations. E. telemarketing.
D
Gross national income equals GDP A. minus net consumer spending. B. plus government spending on international trade. C. minus purchasing power parity. D. plus the net investment income earned from abroad. E. plus gross domestic international investment.
D
Jennifer has worked for many years reviewing and approving print ads for her firm. She has memorized a checklist of key points to review. Which of the following would NOT be on her checklist? A. headline B. body copy C. brand elements D. photo credits E. subheads
D
Kathy has naturally curly hair and has often been disappointed with the haircuts she has received. When she moved to a new town, she approached her new office mates and several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on the __________ associated with her purchase decision. A. evoked set B. reference group C. physiological risk D. performance risk E. financial risk
D
Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns A. with low individualism symbolism when confronted with a time oriented culture. B. using uncertainty avoidance to reduce power distance. C. with significant power distance. D. consistent with underlying cultural values in a country. E. with more consistent time orientation.
D
National manufacturers and retailers often pay a service provider to monitor television ads around the country, to ensure that their ads are shown in their entirety during the time frames that were purchased. This service provider is monitoring for IMC noise problems associated with A. competing messages. B. lack of clarity in the message. C. a poor choice of medium. D. a flaw in the medium. E. an extended feedback loop.
D
Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy to supply her customers. Paula is concerned with __________ demand. A. modified B. secondary C. rebuy D. derived E. delayed
D
Ryan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. Michael's favorite phrase, when confronted by the need to make a decision, is "Whatever." In marketing terms, Ryan is said to have a(n) __________ and Michael, a(n) __________. A. obsessive personality; laissez-fair approach B. formal search function; casual search function C. increased search anxiety; decreased search anxiety D. internal locus of control; external locus of control E. focused sense of information; unfocused sense of information
D
Sally has been having a difficult time working with a particular buyer while using the personal selling process, and she has asked her manager, Chris, for some ideas about how to close the sale effectively. Chris asks her a number of questions to help sort out the difficulties. Which of the following questions would Chris be LEAST likely to ask? A. "What does the buyer's body language tell you about her readiness to buy?" B. "Did you skip any steps in the process?" C. "Are there any reservations that have not been addressed to the buyer's satisfaction?" D. "Have you completed the follow-up to ease the buyer's mind?" E. "Should you go back to an earlier stage in the process and start the process over from there?"
D
Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as A. intangibility. B. professional competence. C. perishability. D. inseparability. E. variability.
D
Sharon knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering A. a top of market strategy. B. the value of quality. C. advantageous pricing. D. premium pricing. E. differential pricing.
D
The California Raisin Advisory Board used to run ads featuring "The California Raisins," a fictitious R&B musical group composed of dancing raisins that boogied to the song, "I Heard It Through the Grapevine." The ads, which were hugely popular and which gave rise to a line of raisin-themed merchandise, were designed to encourage raisin consumption. This campaign was an example of A. product-focused advertising. B. consumer generated advertising. C. public service announcements. D. institutional advertising. E. push strategies.
D
The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with A. an evoked set. B. psychological needs. C. social concerns. D. evaluative criteria. E. biased information.
D
The advertising message admonition, "People are not looking for quarter-inch drill bits; they are looking for quarter-inch holes," suggests that advertising messages need to A. emphasize technology. B. focus on quality. C. inform consumers about opportunities. D. focus on solving problems. E. engage in mild puffery.
D
The chair of the board of the local Humane Society chose the bank where the organization keeps its money; however, the office manager is the primary person who makes deposits, writes checks, and balances the account every month. The office manager is the __________ in the buying center for the bank account. A. initiator B. decider C. gatekeeper D. user E. influencer
D
The consumer buying process begins when A. a consumer enters a store. B. consumers' functional needs are greater than their psychological needs. C. a consumer's performance risk is minimized. D. a consumer recognizes an unsatisfied need. E. learning follows perception.
D
The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a A. knowledge gap. B. standards gap. C. social expectations gap. D. delivery gap. E. communications gap.
D
The individual elements of an IMC strategy can be viewed on two axes: __________ (from the consumer's perspective) and ________. A. passive and interactive; tangible and intangible B. mobile marketing and direct marketing; tangible and intangible C. offline and online; low cost and high cost D. passive and interactive; offline and online E. static and changing; offline and online
D
The marketing of services differs from product marketing because services are all of these EXCEPT A. intangible. B. inseparable. C. variable. D. renewable. E. perishable.
D
The more substitutes that exist in a market, A. the lower the price elasticity for each product. B. the greater the income elasticity for each product. C. the easier it will be to utilize a target profit pricing strategy. D. the more sensitive consumers will be to changes in the price of a particular product. E. the more likely the market will be characterized as an oligopoly.
D
The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of A. internal, controllable marketing issues. B. issues that don't even need to be discussed in ethical firms. C. marketing issues but not ethical issues. D. marketing ethical issues. E. ethical issues but not marketing issues.
D
There is an old saying, "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with A. cross-shopping. B. competitive parity pricing. C. target return value. D. prestige pricing. E. break-even point pricing.
D
Traditional demand curve economic theory is used by marketers to understand _______________ in the five Cs of pricing. A. competitors B. channel members C. cost D. customers E. company objectives
D
What is Google+? A. an experimental, advanced search engine B. a website where users can work together to create documents C. a site offering analytical information about website usage D. a social networking site E. a video sharing site intended for businesses
D
Which of the following is NOT a major consideration in determining an advertising budget? A. role of advertising in overall promotional objectives B. the product life cycle C. the nature of the market D. the budgeting method used E. the nature of the product
D
Which of the following is NOT one of the five Cs of pricing? A. customers B. channel members C. cost D. collaboration E. company objectives
D
Which of the following is the LEAST interactive IMC strategy? A. personal selling B. mobile marketing C. online marketing via social media D. direct marketing via catalog E. direct marketing via telemarketing
D
Which statement best describes personal selling? A. It involves a larger audience than advertising. B. It is primarily indirect communication. C. It is primarily informational communication, not persuasive communication. D. It is the two-way flow of communication between a buyer and a seller. E. It involves encoding whereas advertising involves only decoding.
D
__________ attributes are product or service features that are important to buyers and that are used to differentiate among choices. A. Retrieval B. Financial C. Social D. Determinant E. Safety/performance
D
__________ is any interference in the IMC process. A. Translation B. Looping C. Excessive reach D. Noise E. Feedback
D
A _________________ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen. A. sales orientation B. target profit C. target return D. status quo E. maximizing profits
E
A firm that places emphasis on developing and maintaining positive relationships with the media is focusing on a(n) ________ strategy. A. personal selling B. mobile marketing C. advertising D. direct marketing E. public relations
E
A no-haggle pricing policy is a type of _______________ pricing strategy. A. maximizing profits B. sales orientation C. target return D. status quo E. customer-oriented
E
After posting an RFP for telecommunications equipment, USF Corporation received six proposals from qualified vendors. Next, USF will A. recognize obstacles that must be circumvented. B. reevaluate the firm's needs. C. give one vendor a purchase order. D. conduct vendor analysis. E. evaluate the proposals and narrow the choice to a few suppliers.
E
After the advertiser has decided on the message, type of ad, and appeal, its attention now shifts to A. logistical support. B. new product development. C. advertising assessment. D. determining why they should advertise. E. creation of the advertisement.
E
All of the following terms are generally associated with the definition of corporate social responsibility EXCEPT A. voluntary. B. stakeholders. C. social impact. D. environmental impact. E. profit.
E
Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively A. increased the income effect for its products. B. increased the cross-price elasticity for its products. C. focused on the competitive parity point for its products. D. shifted the golf ball market from a monopoly to pure competition. E. reduced the price elasticity of demand for its products.
E
Bridgette went to Gap ready to buy a new blouse, but was not sure which color or style she wanted. The sales representative sensing Bridgette's buying mode, most likely began with the __________ stage of the selling process. A. generate leads B. preapproach C. closing the sale D. follow-up E. sales presentation
E
Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process? A. need recognition B. postpurchase evaluation C. information search D. situational analysis E. evaluation of alternatives
E
Exchange control refers to the regulation of a country's A. comparative inflation rate. B. countertrade exchange. C. quota rate of exchange. D. exchange tariffs. E. currency exchange rate.
E
Gerald has a number of customers for his lawn care service who never question his bill but expect their lawns to be perfect. These customers do not want low prices, they want A. a sales orientation. B. fixed costs. C. cross-price discounts. D. a target return. E. high value.
E
Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a ______________ pricing strategy. A. maximizing profits B. target profit C. target return D. status quo E. sales orientation
E
Historically, prices were A. the center of attention in almost all marketing strategies. B. analyzed and changed constantly. C. calculated to minimize contribution per unit. D. allowed to vary seasonally as cross-shopping tendencies fluctuated. E. rarely changed except in response to radical shifts in market conditions.
E
If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists. A. seniority B. knowledge C. standards D. delivery E. communication
E
In simple terms, the AIDA model is also known as the __________ model. A. intention, action, interest B. stop, look, listen C. want, need, desire D. inform, persuade, act E. think, feel, do
E
Jeri is a software developer who has worked in IT for the past ten years. She stays up to date on the latest technologies. Whenever one of her Facebook friends asks a question about technology—such as a request for help with a software problem, or a request for a product recommendation—Jeri always makes time to respond. What segment of social networking users does Jeri belong to? A. bonders B. creators C. listeners D. professionals E. sharers
E
Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying, "South of the Border Restaurant and Motel is just 100 miles away." Julia has never heard of South of the Border before. After seeing the sign, she will most likely need additional exposure to the product before deciding whether to stop at South of the Border. This is an example of A. rejection of advertising. B. subliminal advertising. C. product underwhelm. D. IMC strategy. E. the lagged effect.
E
Lars wants to purchase a gift for a colleague whose home he will be visiting. He decides to bring luxury chocolates, because he knows most people enjoy them. Although he is not sure about specific products, Lars heads directly for a store selling Godiva Chocolates because he knows this is a high-end brand. Lars can be said to have A. brand recall. B. aided recall. C. brand preference. D. brand image. E. brand awareness.
E
Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility. These business leaders consider corporate social responsibility to be A. a basic requirement of any business. B. the equivalent of the AMA ethical value, "Do no harm." C. the key to operational effectiveness. D. a component of basic business ethics. E. beyond the norms of corporate ethical behavior.
E
Many health insurance policies require patients to call and get preapproval for tests or procedures. The health insurance company acts as a __________ for the purchase of these medical services. A. decider B. initiator C. influencer D. user E. gatekeeper
E
Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of A. intangibility. B. part-time employees. C. perishability. D. inseparability. E. variability.
E
Sales representatives add value for customers by doing all of the following EXCEPT A. educating them about the firm's products. B. providing advice on solving business problems. C. saving them time. D. simplifying communication with the firm. E. reducing the firm's marketing costs.
E
Thanh is starting a career in selling, but he eventually wants to become a senior manager. A selling career may help Thanh to achieve that goal by providing A. structure. B. scheduling flexibility. C. job security. D. income. E. visibility to management.
E
The Johnson and Johnson Credo A. was a response to the Tylenol incident. B. proved ineffective when the company needed to act in the Tylenol crisis, which was a clear lesson to other companies to update similar documents. C. was copied by all other pharmaceutical companies. D. offers an extremely detailed description of potential problems for the company. E. has guided the firm since it was written in the 1940s.
E
The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services. A. promotional discounts B. zone of tolerance allowances C. perishability gap analysis D. point-of-purchase displays E. satisfaction guarantees
E
The proliferation of new media alternatives has led many firms to shift their promotional budgets from A. publicity to public relations. B. personal selling to advertising. C. integrated marketing communications to diverse marketing communications. D. stealth marketing to viral marketing. E. advertising to direct marketing and website development.
E
The term "trade deficit" refers to A. a country that exports more goods than it imports. B. an indicator of the quality of life in a country. C. a level of population growth that affects exports. D. the sum of all goods and services handled in a country. E. higher levels of imports than exports.
E
Though a picture may be worth a thousand words, the most important facet of encoding is A. who draws the picture. B. the self-visualization process. C. not what is received but what is sent. D. the sponsor rather than the receiver. E. not what is sent but what is received.
E
When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future. A. intangible B. inseparable C. variable D. durable E. perishable
E
When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a A. knowledge gap. B. standards gap. C. social expectations gap. D. delivery gap. E. communications gap.
E
Which of the following is NOT an element of the factors affecting consumers' search processes? A. perceived benefits versus perceived costs of search B. locus of control C. actual risk D. perceived risk E. functional versus psychological need
E
Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that five to ten last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening. A. intangible B. inseparable C. variable D. durable E. perishable
E
Sales of electric components manufactured by Rick's company depend on sales of new cars. Rick's company faces __________ demand. A. synthetic B. situational C. monopolistic D. contrived E. derived
E Derived demand refers to the link between consumers' demand for a company's output and the company's purchase of necessary inputs
Which of the following is NOT one of the major trade agreements affecting global marketing? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA
GNI
