CLEP Marketing Questions

Which customer question is answered by a company's value proposition? (A) "Why should I buy your brand rather than a competitor's?" (B) "How does your brand benefit me and society?" (C) "What are the costs and benefits of your brand?" (D) "What kind of experience will I have with products and services associated with this brand?" (E) "What are the benefits of being a loyal consumer of your brand?"

(A) "Why should I buy your brand rather than a competitor's?"

Which of the following would be considered a nonprofit organization? (A) A homeless shelter that charges a fee for its services and uses the proceeds for the upkeep of the shelter (B) A drug rehabilitation center in which revenues in excess of cost go to the owners (C) A vaccination clinic owned by an individual entrepreneur (D) A bookstore open to the public for business (E) A hospital that has a publicly traded common stock

(A) A homeless shelter that charges a fee for its services and uses the proceeds for the upkeep of the shelter

Which of the following is an intermediary in the distribution channel that moves goods without taking title to them? (A) Agent (B) Wholesaler (C) Merchant (D) Retailer (E) Dispenser

(A) Agent

Relationship marketing can help a company... (A) Create long-term, cost-effective links with individual customers for mutual benefit. (B) Reduce its strategic planning effort since the need for such planning is greatly diminished. (C) Find more effective media for use in advertising and mass marketing. (D) Cut through the planning process straight to tactical plans. (E) Increase its market share by increasing its profit

(A) Create long-term, cost-effective links with individual customers for mutual benefit.

Which of the following best describes members of a buying center? (A) Everyone involved in making the purchase decision (B) Everyone involved in signing contracts (C) Everyone employed in the purchasing department (D) Direct reports of the vice president of purchasing (E) Technical experts who advise on product specifications

(A) Everyone involved in making the purchase decision

A fast-food chain seeking an easy and low-cost entry into a foreign market would most likely choose which of the following avenues? (A) Franchising (B) Joint ventures (C) Wholly owned subsidiaries (D) Turnkey operations (E) Exporting

(A) Franchising

A fast-food chain seeking an easy and low-cost entry into a foreign market would most likely choose which of the following avenues? (A) Franchising (B) Joint ventures (C) Wholly owned subsidiaries (D) Turnkey operations (E) Exporting

(A) Franchising

Which of the following is NOT a segmentation criterion or consideration used for choosing a target market? (A) Market accountability (B) Market identifiability and measurability (C) Market substantiality (D) Market accessibility (E) Market responsiveness

(A) Market accountability

Which of the following is the first step in the sales process? (A) Prospecting (B) ASales presentation (C) Gaining commitment (D) Approach (E) recall planning

(A) Prospecting

Which one of the following changes would most likely motivate a firm to reposition a brand? (A) Shifting demographics (B) Stock market fluctuations (C) An economic downturn (D) Changes in available financial resources (E) Rising sales

(A) Shifting demographics

For the following event, indicate which kind of environment it belongs to: The growing Latino population (A) Sociocultural Environment (B) Economic Environment (C) Technological Environment

(A) Sociocultural Environment

Rather than basing the price of a product on the seller's costs, this method uses buyers' perceptions of what a product is worth. (A) Value-based pricing (B) Target costing (C) Variable costs (D) Price elasticity (E) Product image

(A) Value-based pricing

ABC Company agrees to pay a certain amount of a retailer's promotional costs for advertising ABC's products. This is an example of (A) cooperative advertising (B) reminder advertising (C) comparison advertising (D) slotting allowance (E) a premium

(A) cooperative advertising

The ability to tailor marketing processes to fit the specific needs of an individual customer is called (A) customization (B) community building (C) standardization (D) mediation (E) product differentiation

(A) customization

Behavioral research generally indicates that consumers' attitudes (A) do not change very easily or quickly (B) are very easy to change through promotion (C) cannot ever be changed (D) can only be developed through actual experience with products (E) are very accurate predictors of actual purchasing behavior

(A) do not change very easily or quickly

The estimated market value of a brand is best described as brand (A) equity (B) benefit (C) worth (D) merit (E) return on in

(A) equity

The growth of service industries is primarily the result of (A) increasingly complex and specialized customer needs (B) a rise in income and the degree of customer input (C) hrapid growth of population and government tracking systems (D) increased use of labor-intensive technology (E) decreasing demand for equipment-based services

(A) increasingly complex and specialized customer needs

In the marketing research process, firms often gather and analyze secondary data rather than primary data because secondary data (A) is more readily available and less expensive to collect than primary data (B) provides more detailed information about consumer preferences than does primary data (C) is easier to analyze than primary data (D) is limited to internal sources, while primary data includes external sources as well (E) can be more readily adapted to individual needs

(A) is more readily available and less expensive to collect than primary data

In the marketing research process, firms often gather and analyze secondary data rather than primary data because secondary data (A) is more readily available and less expensive to collect than primary data (B) provides more detailed information about consumer preferences than does primary data (C) is easier to analyze than primary data (D) is limited to internal sources, while primary data includes external sources as well (E) can be more readily adapted to individual needs

(A) is more readily available and less expensive to collect than primary data

A consumer is reading a magazine with an HP advertisement, but is distracted from reading the advertisement or its key points. This unplanned static or distortion during the communication process is called ________. (A) noise (B) distraction (C) feedback (D) response (E) message response

(A) noise

The major reason that producers benefit from using intermediaries is because they ________. (A) offer greater efficiency in making goods available to target markets (B) operate less expensively (C) save a lot of work (D) are generally backlogged with orders (E) refuse to store products for longer than a couple of days

(A) offer greater efficiency in making goods available to target markets

A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. (A) product line (B) line extension (C) private brand (D) convenience product (E) product bandwidth

(A) product line

marketing expert said that he could have advertised a brand of soap as a detergent bar for men with dirty hands, but instead chose to advertise it as a moisturizing bar for women with dry skin. This illustrates the marketing principle known as (A) product positioning (B) sales promotion (C) cannibalization (D) deceptive advertising (E) undifferentiated marketing

(A) product positioning

When a firm decides on a minimum acceptable profit level and seeks to increase its sales subject to this profit constraint, its pricing objective is (A) sales maximization. (B) increasing cost. (C) target costing. (D) prestige pricing.

(A) sales maximization.

The marketing director of a manufacturing company says, "If my wholesaler exceeds the sales record from last month, I agree to give him a paid trip to the Bahamas." This technique is a form of (A) sales promotion (B) advertising (C) personal selling (D) direct marketing (E) public relations

(A) sales promotion

Cooperative advertising is usually undertaken by manufacturers in order to (A) secure the help of the retailer in promoting a given product (B) divide responsibilities between the retailers and wholesalers within a channel of distribution (C) satisfy legal requirements (D) create a favorable image of a particular industry in the minds of consumers (E) provide a subsidy for smaller retailers that enables them to match the prices set by chain stores

(A) secure the help of the retailer in promoting a given product

Suppose a company's marketing research found that consumers between the ages of 18 and 34 were potentially the most profitable. If the company decided to direct all of its marketing efforts solely to this age group, the age group would represent the company's: (A) target market. (B) industrial users. (C) market potential. (D) market exclusion. (E) demographic mix.

(A) target market.

Causal research is used to ________. (A) test hypotheses about cause-and-effect relationships (B) gather preliminary information that will help define problems (C) uncover information at the outset in an unstructured way (D) describe marketing problems or situations

(A) test hypotheses about cause-and-effect relationships

You are directed to study the demographic, economic, natural, technological, political, and cultural factors that are larger societal forces affecting your company. What are you studying? (A) the macroenvironment (B) the microenvironment (C) the external environment (D) the marketing mix (E) the global environment

(A) the macroenvironment

Positioning refers to (A) the perception of a product in customers' minds (B) the store location in which a marketing manager suggests a product be displayed (C) where the product is placed on the shelf (D) which stores will distribute a company's product (E) where the new product is first advertised

(A) the perception of a product in customers' minds

Which of the following products is most likely to be a high-involvement purchase? (A) A package of rubber bands. (B) A birthday gift for your new mother-in-law. (C) A subscription renewal to Time magazine. (D) A mystery novel to read on a long airplane flight. (E) A box of baking soda.

(B) A birthday gift for your new mother-in-law.

In which of the following situations is the number of buying influences most likely to be greatest? (A) A university buys large quantities of paper for computer printers on a regular basis. (B) A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture. (C) A consumer decides to buy a different brand of potato chips because they are on sale. (D) A retail chain is searching for a vendor of lower-priced cleaning supplies. (E) A purchasing manager has been asked to locate a second source of supply for corrugated shipping cartons.

(B) A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture.

Which of the following specifies a limit on the amount of certain products that can be imported into a country? (A) A tariff (B) A quota (C) A credit restriction (D) An exchange control (E) An embargo

(B) A quota

Which of the following specifies a limit on the amount of certain products that can be imported into a country? (A) A tariff (B) A quota (C) A credit restriction (D) An exchange control (E) An embargo

(B) A quota

Which answer has the four steps of the marketing research process in the correct order. (A) Determine the research design. Define the problem. Collect data. Choose the data collection method. (B) Define the problem. Determine the research design. Choose the data collection method. Collect data. (C) Choose the data collection method. Define the problem. Determine the research design. Collect data. (D)Collect data. Choose the data collection method. Define the problem. Determine the research design. (E) Determine the research design. Collect data. Define the problem.Choose the data collection method.

(B) Define the problem. Determine the research design. Choose the data collection method. Collect data.

The XYZ Corporation has two chains of restaurants. One restaurant specializes in family dining with affordable meals. The second restaurant targets young, single individuals, and offers a full bar and small servings. The XYZ Corporation uses which form of targeted marketing strategy? (A) Mass marketing (B) Differentiated marketing (C) Undifferentiated marketing (D) Customized marketing (E) Concentrated marketing

(B) Differentiated marketing

For the following event, indicate which kind of environment it belongs to: Rising mortgage rates (A) Sociocultural Environment (B) Economic Environment (C) Technological Environment

(B) Economic Environment

A brand that has achieved brand insistence and is considered a specialty good by the target market suggests which of the following distribution objectives? (A) Widespread distribution near probable points of use (B) Exclusive distribution (C) Intensive distribution (D) Enough exposure to facilitate price comparison (E) Widespread distribution at low cost

(B) Exclusive distribution

Which of the following is true of price skimming? (A) It requires intermediaries to provide kickback payments. (B) It calls for relatively high prices to start, reducing over time. (C) It is reserved for products in the late stages of the product life cycle. (D) It works best in situations with highly elastic demand. (E) It is illegal in most jurisdictions in the United States.

(B) It calls for relatively high prices to start, reducing over time.

If a firm is using penetration pricing, the firm is most likely trying to achieve which of the following pricing objectives? (A) Product quality leadership (B) Market-share maximization (C) High gross margin (D) Status quo (E) Geographic flexibility

(B) Market-share maximization

If a company decides to allocate more resources to personal selling and sales promotion by its resellers, which of the following strategies is it using? (A) Pull strategy (B) Push strategy (C) Direct selling strategy (D) Indirect selling strategy (E) Integrated marketing communication

(B) Push strategy

Which of the following statements about secondary data is correct? (A) Secondary data are usually more expensive to obtain than primary data. (B) Secondary data are usually available in a shorter period of time than primary data. (C) Secondary data are usually more relevant to a research objective than are primary data. (D) Secondary data must be collected outside the firm to maintain objectivity. (E) Previously collected data are not secondary data

(B) Secondary data are usually available in a shorter period of time than primary data.

Which of the following statements about the European Union is true? (A) The EU creates a single Pan-European government. (B) The EU eliminates trade barriers among member countries. (C) The EU is considered the United States of Europe, with its capital in Brussels. (D) The EU removes all internal and external trade barriers to global trade. (E) The EU minimizes inflation through price controls.

(B) The EU eliminates trade barriers among member countries.

Which of the following most accurately describes agent wholesalers? (A) They take title to goods that they sell to other intermediaries. (B) They do not take title to goods that they sell to other intermediaries. (C) They take title to goods that they sell to final consumers. (D) They do not take title to the goods that they sell on commission to final consumers. (E) They manufacture the goods that they sell to final consumers.

(B) They do not take title to goods that they sell to other intermediaries.

A marketing strategy is composed of both (A) a target market and market opportunities (B) a target market and related marketing mix (C) a target market and SWOT analysis (D) a marketing mix and required resources (E) a marketing mix and competition

(B) a target market and related marketing mix

During the first stage of the product life cycle, a marketer's objective most likely will be to (A) maximize market share (B) build product awareness (C) reduce expenditures (D) defend a position (E) diversify into new categories

(B) build product awareness

During the first stage of the product life cycle, a marketer's objective most likely will be to (A) maximize market share (B) build product awareness (C) reduce expenditures (D) defend a position (E) diversify into new categories

(B) build product awareness

On its e-commerce Web site, XYZMusic.com sells songs from new artists who produce their own music. The site also hosts ads from other e-businesses. The ads presented to a user depend on the type of music the user is reviewing. XYZMusic.com collects ad revenue when users follow links in the ads to the advertisers' Web sites. XYZMusic.com's advertising revenue is based on (A) cost-per-thousand exposures (B) click-through rates (C) ad presentation rates (D) unique site-visitor data (E) site-traffic data

(B) click-through rates

The demand for industrial goods is sometimes called "derived" because it depends on (A) economic conditions (B) demand for consumer goods (C) governmental activity (D) availability of labor and materials (E) the desire to make a profit

(B) demand for consumer goods

When backed by buying power, wants become ________. (A) social needs (B) demands (C) physical needs (D) self-esteem needs (E) exchanges

(B) demands

With seven other homeowners, Marty was invited to a(n) _____ where the researcher asked the group general questions about how they do yard work. The interview revealed that most have limited time to work in the yard and would be willing to hire a lawn care service if the price were reasonable. (A) walking interview (B) focus group (C) experimental method (D) centralized survey method (E) shopping mall intercept

(B) focus group

The reasons many hotel chains now use the same room decor at all their hotels is in the attempt to solve the problem that (A) services are intangible. (B) it is difficult to standardize services. (C) services are inseparable from their providers. (D) buyers get involved in service design and distribution.

(B) it is difficult to standardize services.

A fertilizer manufacturer who traditionally markets to farmers through farm supply dealers and cooperatives decides to sell current products to home gardeners through lawn and garden shops. This decision is an example of (A) market penetration (B) market development (C) product development (D) diversification (E) vertical integration

(B) market development

Firms set prices as low as possible in order to become the ________. (A) product quality leader (B) market share leader (C) customer quality leader (D) profit maximization leader (E) price leader

(B) market share leader

A channel of distribution refers to the (A) routing of goods through distribution centers (B) sequence of marketing intermediaries from producer to consumer (C) methods of transporting goods from producer to consumer (D) suppliers who perform a variety of functions (E) traditional handlers of a product line

(B) sequence of marketing intermediaries from producer to consumer

Lutèce Brands, Inc., acknowledges that its French pastries may contribute to health problems in some of its customers, but the company claims that the benefits (such as personal pleasure and taste) outweigh the risks. The company's approach to moral reasoning is best described as (A) moral idealism (B) utilitarianism (C) categorical imperative (D) enlightened self-interest (E) situational ethics

(B) utilitarianism

Missionary salespersons are most likely to do which of the following? (A) Sell cosmetics directly to consumers in their own homes (B) Take orders for air conditioners to be used in a large institution (C) Describe drugs and other medical supplies to physicians (D) Secure government approval to sell heavy machinery to a foreign government (E) Take orders for custom-tailored garments or other specially produced items

(C) Describe drugs and other medical supplies to physicians

Which of the following is NOT an advantage of Internet advertising as compared with traditional advertising? (A) Target-market selectivity (B) Tracking ability (C) Exclusivity (D) Deliverability (E) Interactivity

(C) Exclusivity

Maxine suddenly realizes that she is out of paper towels. She remembers that she last bought Max Dri Towels, so she stops at the store and picks up another roll of Max Dri on her way home from work. In this example, Maxine uses what form of information search in her decision process? (A) Limited problem solving (B) Extended problem solving (C) Internal information search (D) Compensatory information search (E) Information search by personal sources

(C) Internal information search

Which of the following approaches for entering international markets involves granting the rights to a patent, trademark, or manufacturing process to a foreign company? (A) Exporting (B) Franchising (C) Licensing (D) Joint venturing (E) Contract manufacturing

(C) Licensing

Which of the following best describes the process of selecting target markets in order to formulate a marketing mix? (A) Strategic planning (B) Product differentiation (C) Market segmentation (D) Marketing audit (E) SWOT analysis

(C) Market segmentation

Which of the following is the fastest growing nonstore retail segment in the United States? (A) Television home shopping (B) Automatic vending (C) Online retailing (D) Catalog marketing (E) Direct-response marketing

(C) Online retailing

Which of the following types of marketing communications tends to have the shortest-term focus and objectives? (A) Brand advertising (B) Public relations (C) Sales promotion (D) Event sponsorship (E) Corporate advertising

(C) Sales promotion

To save time and money, a marketing research team uses data that have already been gathered for some other purpose. Which type of data is the team using? (A) Sample (B) Primary (C) Secondary (D) Survey (E) Experiment

(C) Secondary

For the following event, indicate which kind of environment it belongs to: The development of new production techniques (A) Sociocultural Environment (B) Economic Environment (C) Technological Environment

(C) Technological Environment

Which of the following organizations administers the GATT (General Agreement on Tariffs and Trade) ? (A) The United Nations (B) The European Union (C) The World Trade Organization (D) The North American Free Trade Agreement (E) The Securities and Exchange Commission

(C) The World Trade Organization

A major advantage of distributing products by truck is (A) low cost relative to rail or water (B) low probability of loss or damage to cargo (C) accessibility to pick-up and delivery locations (D) speed relative to rail or air (E) ability to handle a wider variety of products than other means

(C) accessibility to pick-up and delivery location

At the most basic level, products and services should be viewed as a collection of (A) attributes (B) expectations (C) benefits (D) features (E) promises

(C) benefits

Kellogg's has introduced a new puffed corn cereal, Kellogg's Corn Puffs, a category where they previously did not have a product. This is an example of ________. (A) brand equity (B) product line (C) brand extension (D) private brand (E) brand symbol

(C) brand extension

________ is an important concept when we realize that losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage. (A) heuristics (B) net profit (C) customer lifetime value (D) relationship marketing (E) market share

(C) customer lifetime value

Market segmentation that is concerned with people over 65 years of age is called (A) geographic (B) socioeconomic (C) demographic (D) psychographic (E) behavioral

(C) demographic

A marketer usually offers a noncumulative quantity discount in order to (A) reward customers for repeat purchases (B) reduce advertising expenses (C) encourage users to purchase in large quantities (D) encourage buyers to submit payment promptly (E) ensure the prompt movement of goods through the channel of distribution

(C) encourage users to purchase in large quantities

The primary function of promotion is to (A) sell products and services (B) create awareness (C) inform, persuade, and remind (D) make a demand more elastic (E) eliminate competition

(C) inform, persuade, and remind

While writing a marketing plan, Melanie decides that the marketing objective should be "to increase market share by 5 percent." A weakness in this objective is that (A) it is not measurable (B) it should be related to brand image rather than market share (C) it does not specify a time period (D) if the product is an industrial product, the objective should specify product quality (E) it does not address all elements of the business plan

(C) it does not specify a time period

This positioning strategy is very competitive. It can attack a more-for-more strategy by introducing a brand offering comparable quality but at a lower price. (A) more-for-the-same strategy (B) more-for-less strategy (C) same-for-less strategy (D) less-for-much-less strategy (E) all-or-nothing strategy

(C) same-for-less strategy

Marketing strategy planning includes (A) supervising the activities of the firm's sales force (B) determining the most efficient way to manufacture products (C) selecting a target market and developing the marketing mix (D) determining the reach and frequency of advertising (E) monitoring sales in response to a price change

(C) selecting a target market and developing the marketing mix

Prices of services rise during times of peak demand only to fall -- often drastically -- when demand declines because (A) services are intangible. (B) buyers get involved in service design and distribution (C) services are perishable. (D) services are inseparable from their providers.

(C) services are perishable.

A(n) ______________ is a group of customers (people or organizations) at whom the seller specifically intends to aim its marketing efforts. (A) market (B) segment (C) target market (D) market aggregate (E) industrial use

(C) target market

Buyers typically experience some post-purchase anxieties in all but routine purchases. This state of anxiety is known as cognitive dissonance and can be expected to increase if: (A) the length of the distribution channel increases. (B) the relative attractiveness of the unselected alternatives decreases. (C) the relative importance of the purchase increases. (D)the price elasticity increases. (E) any of the above occurs.

(C) the relative importance of the purchase increases.

Consumers tend to be more satisfied with their purchase of a product when (A) cognitive dissonance develops after the purchase (B) he price of the product falls after the purchase (C) they research the product before the purchase (D) their opinions are inconsistent with their values (E) there is no further contact with the seller

(C) they research the product before the purchase

The principle task of marketers is to offer a product or service that offers satisfaction. Such an exchange process is intended to satisfy customer ___________. (A) wants (B) expectations (C) needs (D) A and C (E) B and C

(D) A and C

Why do profits increase during the growth stage of the PLC? (A) Promotion costs are spread over a large volume. (B) Unit manufacturing costs fall. (C) Competition has not yet taken sales away. (D) All of the above. (E) None of the above.

(D) All of the above.

Which of the following is an example of business-to-business buying? (A) John buys a new home stereo. (B) Hannah pays for a new television by monthly installment. (C) Daniel decides on which college to attend. (D) Avery purchases a new office desk for his company. (E) Corey buys a soft drink from a vending machine.

(D) Avery purchases a new office desk for his company.

Richard Weiss, SA, is a Swiss watch manufacturer. One of its two major brands offers ruggedness, reliability and durability to active sports enthusiasts. The other offers elegance and stylishness to fashion conscious consumers. Which of the following segmentation approaches is this firm using? (A) Demographic (B) Geographic (C) Usage (D) Benefits sought (E) Socioeconomic

(D) Benefits sought

In selling a new global logistics information system to a large client, the national account manager of a leading supply chain management vendor learns that client executives from marketing, production, human resources, finance, and business strategy will participate in the decision-making process. Which of the following terms best describes the scope of the buying initiative? (A) Universal (B) Specialized (C) Standardized (D) Cross-functional (E) Decentralized

(D) Cross-functional

The degree to which a customer's experience with a product or organization meets or exceeds his or her expectations is often referred to as: (A) Relationship marketing. (B) Exchange. (C) Customer value. (D) Customer satisfaction. (E) Customer loyalty.

(D) Customer satisfaction.

Which of the following strategies for entering the international market would involve the highest risk? (A) Joint ventures (B) Exporting (C) Licensing (D) Direct investment (E) Franchising

(D) Direct investment

Which of the following are key characteristics of services? (A) Cost, time, quality, and value (B) Uncertainty, variability, and standardization (C) Intangibility, durability, and standardization (D) Intangibility, perishability, and variability (E) Tangibility, variability, and uncertainty

(D) Intangibility, perishability, and variability

Which of the following is true of global marketing standardization? (A) It occurs more frequently with consumer products than with industrial goods. (B) It encourages individualized variation in the product, packaging, and pricing for each nation or local market. (C) It addresses legal and cultural differences. (D) It assumes that global consumers increasingly have similar needs. (E) It reduces profit margins.

(D) It assumes that global consumers increasingly have similar needs.

Which of the following is true of the product life cycle? (A) It can accurately forecast the growth of new products. (B) It reveals that branded products have the longest growth phase. (C) It cannot be applied to computer products that quickly become obsolete. (D) It is based on the assumption that products go through distinct stages in sales and profit performance. (E) It proves that profitability is highest in the mature phase.

(D) It is based on the assumption that products go through distinct stages in sales and profit performance.

Which of the following is a primary disadvantage of direct marketing? (A) It is difficult to measure response. (B) It is not personal. (C) t is poorly targeted. (D) It tends to have high costs per contact. (E) It has a fragmented audience.

(D) It tends to have high costs per contact.

In general, a company should enter only segments in which it can ________ and ________. (A) offer lower prices; ship faster (B) offer superior value; gain advantages over competitors (C) offer superior value; ship faster (D) gain advantages over competitors; get co-op advertising (E) identify behaviors; understanding spending power

(D) Segmentation, targeting, and positioning

Which of the following lists the correct order of the steps of the target marketing process? (A) Segmentation, positioning, and targeting (B) Targeting, segmentation, and positioning (C) Positioning, targeting, and segmentation (D) Segmentation, targeting, and positioning (E) Positioning, segmentation, and targeting

(D) Segmentation, targeting, and positioning

Which of the following statements most accurately describes antidumping laws? (A) They set the price that foreign producers must charge. (B) They control the maximum price of imported products. (C) They prevent foreign producers from competing on the basis of price. (D) They prevent foreign-manufactured goods from selling at below cost. (E) They protect consumers from cheaply manufactured foreign products.

(D) They prevent foreign-manufactured goods from selling at below cost.

Harmony Households is the largest home improvement retailer in China. Because of its size and market power, the firm can insist upon desired product features, delivery schedules, and price points from its suppliers. Harmony Households is (A) a primary intermediary (B) an agent retailer (C) a multilevel distributor (D) a channel captain (E) a dominant distributor

(D) a channel captain

Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs? (A) a money-back guarantee (B) low pricing (C) good customer service (D) a value proposition (E) an attribute

(D) a value proposition

President John F. Kennedy's assertion that consumers have certain rights led to legislation that guaranteed all of the following EXCEPT the right to (A) be informed (B) be heard (C) choose (D) bargain (E) safety

(D) bargain

A formal statement of standards that governs professional conduct is called a (A) customer bill of rights. (B) business mission statement (C) corporate culture (D) code of ethics (E) caveat emptor

(D) code of ethics

Gabriella's is an Italian producer of fashion jeans. In this highly competitive market, the firm wishes to match the advertising efforts of its competitors by achieving a share of voice (promotion) which is roughly equal to its share of market (sales). This approach to promotional budgeting is called (A) all you can afford (B) percent of sales (C) allocation per unit (D) competitive parity (E) objective and task

(D) competitive parity

A statement most consistent with the philosophy of the marketing concept would say that the key to success is (A) innovative product development (B) a persuasive sales force (C) an experienced team of marketing managers (D) customer satisfaction (E) minimization

(D) customer satisfaction

A statement most consistent with the philosophy of the marketing concept would say that the key to success is (A) innovative product development (B) a persuasive sales force (C) an experienced team of marketing managers (D) customer satisfaction (E) minimization

(D) customer satisfaction

For a United States manufacturer of major consumer appliances, the most important leading indicator for forecasting sales is (A) automobile sales (B) computer sales (C) educational level of consumers (D) housing starts (E) number of business failures

(D) housing starts

Using a combination of different modes of transportation to move freight in order to exploit the best features of each mode is called (A) conventional distribution (B) developing dual distribution (C) selective distribution (D) intermodal transportation (E) freight forwarding

(D) intermodal transportation

Which of the following is a major disadvantage associated with the use of dual distribution? (A) It is usually very expensive. (B) It can cause channel conflict. (C) It provides limited market coverage. (D) It is only appropriate for corporate channels. (E) Some distribution channel functions are not completed.

(D) intermodal transportation

In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel. (A) depth (B) complexity (C) involvement (D) length (E) exchanges

(D) length

A customer is satisfied, when a customer's purchase ________ his or her expectations. (A) exceeds (B) redefines (C) falls short of (D) lives up to (E) none of the above

(D) lives up to

The sign on the wall of The Health Hut reads, "We want to provide our customers with the freshest and healthiest of foods so that they can live life to the fullest." This sign reflects the: (A) strategic plan. (B) corporate motto. (C) marketing campaign. (D) mission statement. (E) situational assessment

(D) mission statement

The best business portfolio is one that best fits the company's strengths and weaknesses to ________. (A) the established market (B) the potential target markets (C) the company's values statement (D) opportunities in the environment (E) all of the above

(D) opportunities in the environment

The process of identifying people or companies who may have a need for a salesperson's product is known as (A) cold calling (B) presenting (C) approaching (D) prospecting (E) targeting

(D) prospecting

In contrast to a selling orientation, a marketing orientation seeks to: (A) increase market share by emphasizing promotion (B) increase sales volume by lowering price (C) lower the cost of distribution by direct marketing (D) satisfy the needs of targeted consumers at a profit (E) market products that make efficient use of the firm's resources

(D) satisfy the needs of targeted consumers at a profit

Which of the following represent advantages to retailers who sell what are referred to as 'private label' brands? (A) Higher profit margins (B) Lower distribution costs. (C) Increased advertising efforts. (D) A and C. (E) All of the above.

(E) All of the above.

Rachel Terry, regional manager at Wilcon Solvents, Inc., compares last quarter's sales with the levels projected in the firm's marketing plan. She identifies three solvent brands whose sales are below projections and initiates a series of inquiries to discover the reasons for the shortfall. Ms. Terry is engaged in which stage of the strategic marketing process? (A) Environmental scanning (B) Opportunity analysis (C) Planning (D) Implementation (E) Control

(E) Control

Which of the following lists the correct sequence of steps in the consumer decision-making process? (A) Need recognition, evaluation, purchase decision, invoked set, postpurchase behavior (B) Felt need, response to stimulus, evaluation of alternatives, postpurchase decision, purchase behavior (C) Alternative invoked set, need recognition, purchase decision, postpurchase evaluation (D) Information search, need positioning, evaluation of alternatives, product purchase decision, postpurchase satisfaction (E) Need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior

(E) Need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior

A manufacturer of car batteries, who has been selling through an automotive parts wholesaler to garages and service stations, decides to sell directly to retailers. Which of the following will necessarily occur? (A) Elimination of the wholesaler's profit will result in a lower price to the ultimate consumer. (B) Elimination of the wholesaler's marketing functions will increase efficiency. (C) The total cost of distribution will be reduced because of the elimination of the wholesaler. (D) The marketing functions performed by the wholesaler will be eliminated. (E) The wholesaler's marketing functions will be shifted to or shared by the manufacturer and the retailer.

(E) The wholesaler's marketing functions will be shifted to or shared by the manufacturer and the retailer.

A manufacturer who refuses to sell to dealers its popular line of office copiers unless the dealers also agree to stock the manufacturer's line of paper products would most likely be guilty of which of the following? (A) Deceptive advertising (B) Price discrimination (C) Price fixing (D) Reciprocity (E) Tying contracts

(E) Tying contracts

The primary purpose of market segmentation is to (A) combine different groups to meet their needs (B) create sales territories of similar size and market potential to determine sales quotas (C) educe market demand to a manageable size (D) profile the market as a whole to optimize marketing efforts (E) allocate marketing resources to meet the needs of specific segments

(E) allocate marketing resources to meet the needs of specific segments

The stage of product development that involves launching a new product into the market is called (A) a debut (B) an inception (C) an initiation (D) test marketing (E) commercialization

(E) commercialization

The stage of product development that involves launching a new product into the market is called (A) a debut (B) an inception (C) an initiation (D) test marketing (E) commercialization

(E) commercialization

When a convenience store manager raised the price of fountain drinks by 10 percent, she found that the store sold only half as many fountain drinks. The manager's observation indicates that the demand for fountain drinks is highly (A) resilient (B) antagonistic (C) derived (D) exponential (E) elastic

(E) elastic

When a convenience store manager raised the price of fountain drinks by 10 percent, she found that the store sold only half as many fountain drinks. The manager's observation indicates that the demand for fountain drinks is highly (A) resilient (B) antagonistic (C) derived (D) exponential (E) elastic

(E) elastic

The three types of marketing research are (A) explanatory, normative, and descriptive (B) predictive, normative, and innovative (C) interactive, diagnostic, and predictive (D) proactive, interactive, and reactive (E) exploratory, descriptive, and causal

(E) exploratory, descriptive, and causal

All of the following are characteristics of services EXCEPT (A) intangibility (B) heterogeneity (C) inseparability (D) perishability (E) inflexibility

(E) inflexibility

A product is classified as a business product rather than a consumer product based on its (A) tangible and intangible attributes (B) life-cycle position (C) promotion type (D) pricing strategy (E) intended use

(E) intended use

If two brands move closer to each other on a perceptual (positioning) map, it means that they have become (A) less perceptually alike (B) closer in price (C) more objectively alike (D) less likely to be direct competitors (E) more similarly perceived by consumers

(E) more similarly perceived by consumers

In a marketing research study for a manufacturer of porch swings, _____ would most likely be a source of primary data. (A) reports from the homebuilding association (B) a study on how individuals spend their leisure time done by York University (C) annual financial statements provided by the swing manufacturer (D) a survey conducted by Mother Earth News (E) researchers' interviews with hardware-store owners who sell porch swings

(E) researchers' interviews with hardware-store owners who sell porch swings

Reference groups are more likely to influence a consumer's purchase when the product being purchased is (A) important (B) inexpensive (C) familiar (D) intangible (E) socially visible

(E) socially visible

Compared with agent intermediaries, merchant intermediaries (A) sell only to organizational customers (B) sell only in export markets (C) are employees of the manufacturer (D) are compensated by a commission on sales (E) take title to the goods they sell

(E) take title to the goods they sell