Marketing
24) A blocked currency is one whose removal from the country is restricted by the buyer's government. True or False
True
25) Barter involves the direct exchange of goods and services. True or False
True
3) Order getters typically participate in creative selling, social selling, and relationship building. True or False
True
30) Although manufacturers, wholesalers, and retailers do retailing, it is the primary business of retailers. True or False
True
6) Direct marketing has undergone a dramatic transformation due to rapid advances in digital technologies. True or False
True
6) Salespeople represent customers to a company and represent a company to customers. True or False
True
6) Satisfying consumers' immediate needs and desires does not always serve the future best interests of either customers or the business. True or False
True
7) Direct marketing is characterized by narrowly defined segments or individual buyers. True or False
True
8) Digital marketing through online, mobile, and social media provides a sense of brand engagement and community. True or False
True
5) Producers use marketing intermediaries because they ________. A) create greater efficiency in making goods available to target markets B) supply inexpensive raw materials for manufacturing products C) provide technical expertise for faster production D) monitor day-to-day activities during production E) form a part of the company's direct channel
A
5) ________ uses buyers' perceptions of what a product is worth as the key to pricing. A) Customer value-based pricing B) Target return pricing C) Cost-plus pricing D) Psychological pricing E) Competition-based pricing
A
6) Food Galore is a regional chain of supermarkets in the Midwest. The primary role of the staff is to restock shelves and operate cash registers. Customers locate, compare, and select their groceries and other sundry items. Food Galore is most likely a ________. A) self-service retailer B) category killer C) full-service retailer D) supermarket E) pop-up store
A
7) When establishing prices, it's important for a manager to understand that "good value" is not the same as ________. A) "low price" B) "high price" C) "bargain basement" D) "perceived value" E) "everyday value"
A
1) Which of the following would be considered an upstream partner in a company's supply chain? A) a firm that resells a finished product and shares the net sales with the producer B) a firm that provides technical expertise in the production of a product C) a firm that markets a product to consumers through social media D) a firm that buys products at wholesale cost from the company E) a firm that exclusively markets a product to other businesses
B
1) ________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Sole sourcing B) Retailing C) Manufacturing D) Procurement E) Warehousing
B
10) Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas. A) marketing strategy development B) crowdsourcing C) concept development D) business analysis E) test marketing
B
10) Specialty stores are characterized by ________. A) the sale of convenience and staple items B) narrow product lines with deep assortments C) a wide range of products and categories D) low prices on a wide range of goods E) routinely purchased food products and services
B
15) ________ pricing is when a firm tries to determine the price at which it will break even or earn the profit it is seeking. A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added
B
20) Which of the following is an example of a horizontal conflict in a distribution channel? A) a Nike shoe dealer complaining that the shoes provided to the dealer are defective B) a Ford car dealer complaining that another Ford dealer is underpricing the same models C) a FedEx agent complaining that a DHL agent is cutting off his business D) a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time E) a Gucci executive complaining to Gucci's suppliers of delays in shipping consignments
B
3) Which of the following sets the upper limit for a product's pricing? A) profits B) product costs C) consumer perceptions of value D) elements of the product mix E) competition
C
30) Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________. A) administered vertical marketing system B) horizontal manufacturing marketing system C) manufacturer-sponsored retailer franchise system D) manufacturer-sponsored wholesaler franchise system E) direct marketing system
C
25) In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. A) business analysis B) idea generation C) concept screening D) product development E) test marketing
D
3) A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. A) manufacturing chain B) distribution center C) marketing intermediary D) value delivery network E) disintermediation system
D
4) Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A) self-service B) full-service C) off-price D) limited-service E) convenience
D
7) The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) ________ source of new product ideas for the Dairy Bar. A) entrepreneurial B) competitive C) external D) internal E) intrapreuneurial
D
8) Retailers like Walmart and Target carry less-expensive versions of established brand name products or new lower-price lines. They have adopted a ________ pricing strategy. A) high-low B) target return C) cost-plus D) good-value E) market-skimming
D
6) Companies like 3M, Google, and Sony have ________ that encourage employees to develop new ideas. A) trade magazines B) marketing research firms C) government agencies D) competitor's ads E) intrapreneurial programs
E
6) Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida? A) facilitate the production of products without direct customer feedback B) help a company develop a direct channel selling system C) buy small quantities of products from producers and break them down into narrow assortments for customers D) increase the amount of work that must be done by producers and consumers E) transform the assortments of products made by producers into the assortments wanted by consumers
E
9) A company's external sources of new product ideas include its ________. A) managers B) salespeople C) engineers D) manufacturing staff E) suppliers
E
1) Acquisitions are not considered a source of new products for organizations. True or False
False
16) From a producer's point of view, a greater number of levels in a supply chain means less control and greater channel complexity. True or False
True
2) Product modifications are an important source of new products for organizations. True or False
True
22) A break-even chart shows the total cost and total revenue expected at various sales volume levels of a product. True or False
True
23) Target return pricing is a variation of break-even pricing. True or False
True
1) ________ marketing calls for socially and environmentally responsible actions that meet the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Sustainable B) Customer driving C) Mass D) Customer-driven E) Differential
A
10) In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A) direct marketing B) advertising C) public relations D) predictive analyticals E) indirect procurement
A
10) Which of the following is a traditional direct marketing tool? A) catalog B) e-mail C) blog D) online advertisement E) Web site
A
10) Which of the following is true of a territorial sales-force structure? A) It clearly defines each salesperson's job and establishes accountability. B) It benefits firms with many technological products requiring technically skilled salespeople. C) It is used by firms that organize their sales forces along customer or industry lines. D) It requires salespeople to sell a wide variety of products over a broad geographic area. E) It differentiates the sales force solely on the basis of product expertise.
A
11) Rent, electricity, and executive salaries that do not vary with production or sales level are referred to as ________ costs. A) fixed B) variable C) break-even D) target E) promotional
A
12) Which of the following statements is true of a product sales-force structure? A) A product sales-force structure is characterized by specialization along product lines. B) A product sales-force structure is used when a company has only one product line. C) A product sales-force structure requires every salesperson to be an expert in all the product categories of the company. D) A product sales-force structure organizes the sales force along customer or industry lines. E) A product sales-force structure uses a single sales force across different product lines.
A
15) Which term refers to a giant specialty store with a very deep assortment of a particular product line? A) category killer B) convenience store C) factory outlet D) department store E) independent store
A
16) The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as ________. A) concept testing B) concept development C) test marketing D) marketing strategy development E) crowdsourcing
A
27) Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced. A) fixed B) variable C) target D) capital E) payroll
A
17) Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted, social, and engaging. B) They target much larger customer segments. C) They rely more on mass-media marketing techniques. D) They use very little alternative media. E) They include a greater number of print media ads.
A
17) Which of the following statements is true of industrial economies? A) They export their goods to other types of economies for raw materials. B) They have a declining middle class population. C) They depend on agriculture as the primary revenue generator. D) They do not trade goods amongst themselves. E) They consume most of their output and barter the rest for simple goods and services.
A
18) Which of the following is true of advertising in the new marketing communications model? A) Advertisers are increasingly shifting toward digital media. B) Advertisers are spending more on broadcast advertising. C) Advertisers are finding traditional media less expensive. D) Advertisers are using less targeted media to reach customers. E) Advertisers have replaced print catalogues with digital versions.
A
19) ________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail. A) Off-price retailers B) Specialty stores C) Convenience stores D) Designer shops E) Full-service retailers
A
2) Greentech is launching a line of miniature solar chargers for laptops, cellphones, and other electronic devices. The chargers are compact, affordable and the green energy technology is a value-added benefit for both the company and consumers. Which of the following would qualify as an advertisement for Greentech's new solar chargers? A) a front-page notice of the release of Greentech's solar chargers in all leading newspapers B) a press conference to discuss the various benefits, including environmental feature C) the use of dedicated sales personnel to explain the qualities of the new solar chargers to retailers D) an endorsement by a national environmental organization to tout the benefits of the new solar chargers E) an online lottery where interested buyers have a chance to win a prize
A
2) ________ is the only element in the marketing mix that produces revenue. A) Price B) Place C) Promotion D) Product E) Profit
A
20) The third part of a marketing strategy statement describes the ________ of a new product. A) sales, market share, and profit goals B) distribution and pricing C) marketing budget D) planned value proposition E) target market and sales goals
A
21) Lemony Inc. sells its popular bottled lemonade — the company's only product — in various geographic locations through tie-ups and agreements with retailers. Each location is represented by two salespersons, one of whom serves current customers while the other finds new ones. Which of the following sales-force structures has most likely been combined to form the complex sales-force structure at Lemony Inc.? A) market and territorial B) market and customer C) product and territorial D) market and product E) geographical and product
A
22) Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.'s main competitor is Topnotch Manufacturers. Performance Inc. also markets its products through the company Web site. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict? A) a conflict between Performance Inc. and The Sneaker Store B) a conflict among Performance Inc., The Sneaker Store, and Sports Discounters C) a conflict between The Sneaker Store and Sports Discounters D) a conflict between Performance Inc. and Sports Discounters E) a conflict between Performance Inc. and Topnotch Manufacturers
A
23) Online visitors can't buy anything at ESPN.com. Instead, the site creates a virtual experience for sports enthusiasts and fans that can be customized to meet their needs. This is most likely an example of a(n) ________. A) branded community Web site B) promotional Web site C) interactive Web site D) e-tailing Web site E) direct marketing Web site
A
23) Which of the following is most likely true about a sales force in the field? A) They build relationships with customers through face-to-face collaboration. B) They make most sales from their offices via media interactions. C) They provide administrative backup for outside salespeople. D) They rely on telemarketing efforts to gain leads and clients. E) They are prohibited to sell or service accounts directly.
A
24) Which of the following is true of a conventional distribution channel? A) It has each channel member acting as a separate business unit trying to maximize its own profits. B) It consists of producers selling their products directly to customers without the use of intermediaries. C) It has one channel member owning the other channel members. D) It is a distribution channel where a producer is owner of all the other channel members. E) It has all members of the channel working together as a single organization.
A
24) ________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise. A) Warehouse clubs B) Department stores C) Convenience stores D) Specialty stores E) Superstores
A
25) ________ refer to two or more outlets that are commonly owned and controlled. A) Corporate chains B) Factory stores C) Specialty stores D) Designer shops E) Warehouse clubs
A
26) Which of the following account for the largest portion of firms' online advertising spending? A) display and search-related advertisements B) search-related and rich media advertisements C) digital and rich media advertisements D) community Web sites and blog posts E) blog posts and digital media
A
26) Which of the following is most likely true of a sales force? A) The performance difference between an average salesperson and a top salesperson is generally substantial. B) The cost of replacing a salesperson is usually low because minimal training is necessary. C) A sales force with many new people is typically more productive than one whose members have been around for a long time. D) Individuals within a sales force generally perform at the same level of efficiency. E) On-site sales training is more efficient and less costly than e-learning programs.
A
27) Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________. A) test marketing B) portfolio analysis C) commercialization D) internal marketing E) business analysis
A
28) Sales managers use a ________ that shows which customers and prospects to pursue and which activities to carry out. A) call plan B) sales quota C) sales contest D) bonus plan E) straight commission
A
29) Which type of channel arrangement is a retailer like Home Depot likely to follow? A) administered vertical marketing system B) horizontal marketing system C) contractual vertical marketing system D) corporate vertical marketing system E) direct marketing system
A
29) ________ now command about 45 percent of all retail sales in the United States. A) Franchises B) Factory outlets C) Superstores D) Acquisitions E) Joint agreements
A
3) A country may place a limit on the volume of imported citrus fruit that is allowed. This is an example of a(n) ________. A) quota B) tariff C) customs duty D) fine E) excise duty
A
3) The ________ concept specifically focuses on the future welfare of customers, but not on future company needs. A) societal marketing B) strategic planning C) sustainable marketing D) marketing E) selling
A
3) Which of the following are the fastest-growing forms of marketing? A) direct and digital B) undifferentiated and differentiated C) internal and external D) mass and targeted E) standardized and customized
A
30) In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony
A
30) Which of the following is most likely a consequence of permission-based e-mail marketing? A) higher return rates B) excessive spamming C) increased consumer frustration D) lower consumer response rates E) reduced consumer interaction
A
4) Which of the following sets the lower limit for a product's pricing? A) product costs B) profits C) competition D) elements of the product mix E) consumer perceptions of value
A
8) In which of the following cases is crowdsourcing used for new product development? A) A company creates a forum where anyone can contribute new product ideas. B) A company hires a marketing agency to generate new product ideas. C) A company reviews the sales, costs, and profit projections of an existing product. D) A company depends on its R&D department to come up with new ideas. E) A company partners with a design agency to create a few prototypes.
A
8) Which of the following is true of economic communities? A) They are groups of nations organized to work toward common goals. B) They were formed to increase trade barriers between member nations. C) They were formed to mediate global trade disputes. D) They require member countries to establish one currency. E) They tend to improve imports and hinder exports.
A
10) Critics charge that high advertising and promotion costs unnecessarily increase retail prices. Marketers most likely respond to this criticism by arguing that advertising ________. A) provides essential psychological benefits about products B) adds value by giving consumers product information C) generates tax breaks for small businesses D) applies a functional value to the product E) lowers prices by increasing competition
B
11) Java Jane's first coffeehouse was very successful due to the unique flavors, on-site baked goods, and inviting ambiance. The owner, Jane Phillips, decided to franchise her operation when she was approached by several interested investors. Which type of marketing system has Java Jane's most likely adopted? A) an administered marketing system B) a contractual marketing system C) a horizontal marketing channel D) a direct marketing channel E) a vertical marketing channel
B
12) Costs that change directly with the level of production are referred to as ________ costs. A) fixed B) variable C) target D) capital E) payroll
B
12) Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________. A) supermarket B) department store C) specialty store D) pop-up store E) category killer
B
12) Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line. A) crowdsourcing B) idea screening C) concept testing D) concept development E) business analysis
B
12) ________ includes practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock. A) Deceptive packaging B) Deceptive promotion C) Deceptive pricing D) Deceptive distribution E) Deceptive branding
B
13) A country in South America has large reserves of copper and tin. Mining forms the pillar of its economy. A major part of its revenue is generated from exporting these resources. This country is poor in many other ways. It is a good market for large equipment, tools, supplies, and trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also a market for luxury goods. This country most likely has a(n) ________ economy. A) subsistence B) raw material exporting C) emerging D) developed E) industrial
B
13) A major step in regulating unfair or deceptive acts or practices was the enactment of the ________ in 1938. A) Robinson-Patman Act B) Wheeler-Lea Act C) Consumer Product Safety Act D) Taft-Hartley Act E) Sherman Act
B
13) Which of the following steps of the new product development process would most likely use an R-W-W framework? A) idea generation B) idea screening C) concept testing D) test marketing E) commercialization
B
14) A detailed version of a product idea stated in meaningful consumer terms is a ________. A) product feature B) product concept C) product idea D) product image E) product framework
B
14) GE employs different sales forces within different product and service divisions of its major businesses. For example, within GE Infrastructure, the company has separate sales forces for aviation, energy, transportation, and water processing products and technologies. GE has most likely adopted a ________ sales-force structure. A) market B) product C) customer D) territorial E) complex
B
14) In advertising, puffery refers to ________. A) broadcasting a straightforward promotional message B) including innocent exaggeration for effect C) creating emotional appeals for a brand D) creating subliminal appeals for a brand E) providing value-added promotions
B
15) In which of the following cases is a firm employing omni-channel retailing? A) E-tailers such as Hammon.com market their products through a strong online presence. B) Wingate Retail sells its products through e-tailers and hundreds of physical superstores. C) Russel Stores' sales operations are based on heavy outbound telephone marketing. D) Lues Wholesalers markets its products to retailers through personal selling. E) Local convenience stores promote products through word-of-mouth marketing.
B
15) Insurance, real estate, and used cars salespeople are trained to deliver smooth, canned talks to entice purchases. This is known as ________. A) sustainable marketing B) high-pressure selling C) customer-driven marketing D) redlining E) reverse redlining
B
15) Rather than just creating and placing "TV ads" or "print ads" or "Snapchat branded story ads," many marketers now view themselves more broadly as ________ managers. A) social media marketing B) content marketing C) integrated marketing communication D) direct marketing E) multi-media marketing
B
15) ________ economies are major exporters of manufactured goods, services, and investment funds. A) Industrializing B) Industrial C) Subsistence D) Raw material exporting E) Emerging
B
16) Which of the following is most likely true about the digital age with regards to marketing? A) The number of businesses connecting people over digital networks is in decline. B) Digital networks allow marketers many ways to build customer relationships. C) The Internet has had little impact on the ways consumers purchase products. D) Most firms are shifting back to traditional marketing forms to build customer value. E) Online-only marketing is more commonly used by firms than multichannel marketing.
B
17) Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ________. A) idea screening B) marketing strategy development C) business analysis D) product development E) test marketing
B
18) Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ________. A) convenience stores B) discount stores C) full-service retailers D) designer shops E) specialty stores
B
2) The ________ concept specifically focuses on future company needs, but not the future welfare of customers. A) societal marketing B) strategic planning C) sustainable marketing D) global marketing E) cause marketing
B
20) Sleek Designs markets a wide range of kitchen cabinets, counter tops, and ceramic tile. Its salespeople are initially divided on the basis of their expertise in a product category. They're then further divided into teams addressing large home improvement retailers, kitchen and bath suppliers, and specialty home improvement stores. Which of the following sales-force structures has most likely been combined to form this complex sales-force structure? A) territorial and market B) product and market C) product and territorial D) geographical and product E) market and customer
B
21) Kids.com is an online retailer that buys clothing from a variety of brand name manufacturers at less-than-regular wholesale prices and then charges customers less than retail. Kids.com is an example of a(n) ________. A) specialty retailer B) independent off-price retailer C) departmental retailer D) full-service retailer E) category killer
B
21) Vertical conflicts in distribution channels are conflicts that occur between ________. A) same levels in the same channel B) different levels of the same channel C) same levels of different channels D) different levels of different channels E) retailers and customers
B
21) Which of the following is a shortcoming of advertising? A) It does not allow dramatization of the brand or company. B) It only provides one-way communication with customers. C) It can be too customized and only attracts small, niche markets. D) It reaches targeted customers too slowly in most cases. E) It is the most costly promotion tool for companies.
B
22) An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________. A) category killer B) factory outlet C) specialty store D) superstore E) warehouse club
B
22) Which of the following types of promotion tools requires a considerable degree of personal interaction with a customer? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising
B
23) Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________. A) category killer B) factory outlet C) specialty store D) superstore E) power center
B
23) Karen Dodd is employed by Dell and responsible for calling on primary schools in her home state of Maine to promote the company's offerings. She demonstrates the Dell line of products including desktop computers, laptops, and tablets and fields questions from teachers and administrators alike. This is an example of which promotion tool? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising
B
23) The nation's poor areas have 30 percent fewer supermarkets than do affluent areas. As a result, many low-income consumers find themselves ________. A) buying due to high-pressure methods B) in food deserts C) redlining D) being influenced by heavy advertising and promotion E) influenced by predatory pricing tactics
B
24) Critics who assert that the marketing system promotes too much interest in material possessions are most likely concerned that the result of successful marketing will be ________. A) high-pressure selling tactics B) unsustainable overconsumption C) perceived obsolescence D) planned obsolescence E) deceptive pricing
B
24) Taco Bell test marketed Doritos Locos Tacos for three years and developed 45 prototypes. Once the decision was made to launch the new taco shell, it moved into the ________ stage of the new product development process. A) concept development B) product development C) test marketing D) strategy development E) commercialization
B
26) A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a ________. A) factory outlet mall B) retailer cooperative C) corporate chain D) warehouse club E) voluntary chain
B
26) Which of the following is most likely a difference between advertising and sales promotion? A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions.
B
27) A(n) ________ is the variable amount in a salesperson's compensation. A) bonus B) commission C) salary D) incentive E) profit-sharing plan
B
27) Integrating the entire distribution chain — from its own design and manufacturing operations to distribution through its own managed stores — has turned Spanish clothing chain Zara into the world's fastest-growing fast-fashion retailer. This is an example of a(n) ________ marketing system. A) contractual vertical B) corporate vertical C) administered vertical D) horizontal E) direct
B
28) Every time a search is made using keywords related to construction, search engines display text-based advertisements and links to Regan Builders, a construction firm. The marketing tool used by Regan Builders is best referred to as a ________. A) display advertisement B) contextual advertisement C) digital catalog D) community Web site E) Web blog
B
28) Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and More. Which of the following pricing strategies will Los Amigos likely use? A) cost-plus B) competition-based C) break-even D) good-value E) target costing
B
28) Which of the following is true of public relations? A) It provides quick incentives to make product purchases. B) It emphasizes news and events rather than sales C) It involves training a dedicated sales force to meet customers. D) It cannot be used to dramatize a product or company. E) It is the most widely used promotional tool.
B
29) Jeremy Clarkson, a marketing critic, is concerned about the pervasiveness of marketing. He points to advertising messages everywhere, from Web sites and e-mails to unwanted direct mail and catalogs to television commercials and product tie-ins to billboards and store signs. From the description given, it can be concluded that Jeremy is concerned about ________. A) high promotion costs B) cultural pollution C) deceptive practices D) false wants and too much materialism E) the balance between private goods and social goods
B
3) In a marketing communications mix, ________ refers to any short-term incentive that encourages the purchase or sale of a product or service. A) advertising B) sales promotion C) personal selling D) crowdsourcing E) public relations
B
3) ________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Omni-channel retailing C) Test marketing D) Online marketing E) Consolidation marketing
B
30) Which of the following is true of direct and digital marketing? A) Its marketing message is fixed and does not change according to the customer's requirements. B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships. C) It is presented as company news rather than as a sales-directed communication. D) It does not involve any interaction between the company and its customers. E) It is an impersonal promotion tool that hinders two-way communication.
B
30) ________ are the standards stating the amount salespersons should sell and how sales should be divided among the company's products. A) Sales promotions B) Sales quotas C) Display allowances D) Time-and-duty analyses E) Sales reports
B
4) The new product development process usually starts with ________. A) idea screening B) idea generation C) concept development D) concept testing E) market strategy development
B
8) Which type of retailer typically carries deep product assortments of narrow product lines? A) self-service retailers B) specialty stores C) warehouse clubs D) discount stores E) factory outlets
B
9) A common criticism of the marketing system is that intermediaries ________. A) are too few in number B) mark up prices beyond the value of their services C) provide only essential services D) undervalue their service costs E) are overly protective of manufacturers' interests
B
9) A company that sells only one product line to one industry with customers in many locations would typically use a ________. A) product sales-force structure B) territorial sales-force structure C) market sales-force structure D) customer sales-force structure E) complex sales-force structure
B
9) In which of the following situations is a producer guaranteed full control over product sales? A) a corporate marketing channel B) a direct marketing channel C) a contractual distribution channel D) a horizontal marketing system E) an administered marketing system
B
9) Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. A) high-low B) value-added C) target return D) everyday low E) cost-plus
B
1) ________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing
C
1) ________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service. A) Payroll B) Profit C) Price D) Cost E) Salary
C
1) ________ marketing involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. A) Undifferentiated and differentiated B) Mass and targeted C) Direct and digital D) Internal and external E) Standardized and customized
C
10) ________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. A) Competition-based B) Value-added C) Cost-based D) Good-value E) Demand-based
C
11) A toothbrush that costs ten cents to manufacture may cost a consumer $3.00 to buy. According to critics, this is an example of ________. A) deceptive advertising B) redlining C) excessive markup D) high-pressure selling E) shoddy manufacturing
C
11) Which type of economy consumes most of its output and barters the rest for simple goods and services? A) industrial economy B) developed economy C) subsistence economy D) emerging economy E) raw material exporting economy
C
13) A convenience store ________. A) markets to segments comprised mostly of white-collar workers B) stocks narrow product lines that have wide, deep assortments C) carries a limited line of high-turnover goods for consumer self-service D) involves high operation costs due to full-service customer assistance E) is a multi-channel food and discount retailer that targets niche markets
C
14) Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even
C
14) Which of the following is an effect of the advancement of technology on marketing? A) Fragmented markets have assimilated into a few mass markets. B) Marketers go through more intermediaries to connect with consumers. C) Consumers rely less on marketer-supplied information than in the past. D) Marketers have increasingly moved toward mass-marketing techniques. E) Marketers tend to supply less information to consumers than in the past.
C
15) The style, ease of use, and multi-blade technology of Gillette's Fusion razor system is a ________ that has favorably impacted consumer perceptions about other new products sold by the company. A) product audit B) product feature C) product image D) product framework E) product concept
C
16) In which of the following structures does a company organize its sales force along customer or industry lines? A) demographic sales-force structure B) service sales-force structure C) market sales-force structure D) territorial sales-force structure E) product sales-force structure
C
16) Japan is a major exporter of manufactured goods, services, and investment funds. Japan also exports its goods to other types of economies for raw materials and semi-finished goods. This is an example of a(n) ________ economy. A) agricultural B) emerging C) industrial D) raw material exporting E) subsistence
C
16) Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers, desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a ________. A) convenience store B) pop-up store C) category killer D) lifestyle center E) supermarket
C
18) If a company assigns individual teams of salespeople to big retail customers, it most likely has a(n) ________ sales-force structure. A) undifferentiated B) product C) market D) territorial E) demographic
C
18) Which of the following is a transaction site? A) Wikipedia B) Yahoo C) eBay D) IMDB E) Facebook
C
19) Some companies intentionally manufacture their products with materials or components that will break, wear, rust, or rot sooner than they should. This practice is called ________. A) perceived obsolescence B) redlining C) planned obsolescence D) puffery E) reverse redlining
C
19) The growth of the Internet caused many traditional companies to ________ in response to customer demands and a changing marketplace. A) use traditional direct marketing forms B) adopt direct-mail marketing C) use omni-channel retailing D) develop retail transaction sites E) expand their outside sales forces
C
19) The second part of a marketing strategy statement describes the ________ of a new product. A) marketing mix strategy B) profit and sales goals C) planned price, distribution, and marketing budget D) target market and sales goals E) planned value proposition
C
20) For most companies, the first step in conducting online marketing is to ________. A) place an ad online B) send e-mails C) create a Web site D) create a social networking site E) place search-related ads
C
21) ________ involves a review of the sales, costs, and profit projections for a new product to determine whether they satisfy a company's objectives. A) Vendor analysis B) Portfolio analysis C) Business analysis D) SWOT analysis E) Concept analysis
C
22) Critics claim that the urban poor often have to shop in smaller stores that carry inferior goods and charge higher prices because the large, national chain stores refuse to establish stores. This is known as the discriminatory practice of ________. A) perceived obsolescence B) reverse redlining C) redlining D) puffery E) planned obsolescence
C
22) Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product? A) test marketing B) idea screening C) business analysis D) marketing strategy development E) concept testing
C
22) Which of the following is the primary purpose of branded community Web sites? A) displaying digital catalogues B) providing detailed descriptions of products C) creating customer-product engagement D) selling products and services E) sending direct mails to consumers
C
23) Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars — one for commercial and regular consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict? A) a conflict between Jupiter Steel and Greystone Motors B) a conflict between Jupiter Steel and Greystone dealers C) a conflict between two Greystone Motors car dealerships D) a conflict between a Greystone Motors car dealership and a racing team E) a conflict between Greystone Motors and its car dealerships
C
24) Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. B) It allows firms to dramatize product offers through arts and visuals. C) It is the most expensive promotional tool for companies to utilize. D) It is an ineffective method for building long-term customer relationships. E) It presents a firm's message as news rather than as a sales-directed communication.
C
25) Which of the following statements is most likely true of team selling? A) It is used most often when the group of target customers is small and homogeneous. B) It consists of experts from a single area of the selling firm such as marketing or finance. C) It can unearth problems and provide solutions that no individual salesperson could. D) It is most often implemented when products are simple and distribution costs are low. E) It simplifies the process of evaluating the individual contributions of sales team members.
C
26) If a product passes both the concept test and the product test, the next step is most likely to be ________. A) marketing strategy development B) product development C) test marketing D) business analysis E) concept development
C
26) The Great Recession has most likely resulted in a(n)________. A) demand for private goods B) increase in cultural pollution C) decline in conspicuous spending D) increase in modern materialism E) desire for extravagant products
C
27) When a company issues a press release to announce a sizable donation to a national charity, they are using ________ to generate goodwill and maintain a positive corporate image. A) personal selling B) sales promotion C) public relations D) direct and digital marketing E) advertising
C
27) Which contractual system is distinguished by the fact that it is normally based on some unique product or service; method of doing business; or trade name, goodwill, or patent that has been developed? A) voluntary chain B) retailer cooperative C) franchise D) corporate chain E) warehouse club
C
27) ________ might appear anywhere on an Internet user's screen when a user is browsing through an article, and they are often related to the information being viewed. A) Viral advertisements B) Social media sites C) Online display ads D) Digital catalogs E) Printed catalogs
C
28) Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent? A) corporate chain B) voluntary chain C) franchise organization D) independent retailer E) retailer cooperative
C
28) More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. This illustrates a(n) ________ marketing system. A) corporate vertical B) horizontal C) contractual vertical D) administered vertical E) direct
C
29) Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate? A) standard test markets B) inventory tracking C) controlled test markets D) simulated test markets E) direct commercialization
C
29) Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________. A) mass production B) cost-plus pricing C) target costing D) value-added pricing E) target return pricing
C
30) According to critics, large marketing companies use patents and heavy promotion spending to ________. A) acquire smaller companies B) offset too many social costs C) prevent industry competition D) achieve economies of scale E) offset cultural pollution
C
30) ________ is the stage where a product and its proposed marketing program are introduced into realistic market settings. A) Market strategy development B) Concept testing C) Test marketing D) Concept development E) Business analysis
C
4) How has the Internet most likely affected direct and digital marketing? A) The time taken by marketers to reach customer segments has increased. B) The role of technology has become less intense. C) The expenditures on direct and digital marketing have increased. D) The growth of digital sales has seen a significant downturn. E) The number of mass marketing forms has expanded.
C
4) Which of the following is an example of a nontariff trade barrier? A) a sales tax B) customs duty C) a host-country regulation D) excise duty E) an import quota
C
4) ________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users. A) Research and development channels B) Upstream channels C) Marketing channels D) Raw materials suppliers E) Backward integration chains
C
5) The ________ concept focuses on the future welfare of consumers and future company needs. A) societal marketing B) strategic planning C) sustainable marketing D) marketing E) cause marketing
C
5) Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices? A) self-service stores B) convenience stores C) full-service stores D) discount stores E) off-price stores
C
6) A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. A) cost-based B) target costing C) value-based D) value-added E) competition-based
C
7) Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________. A) self-service retailer B) off-price retailer C) full-service retailer D) supermarket E) convenience store
C
7) Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online Web sites, and social media. Both companies use a(n) ________ channel to distribute their offerings. A) functional B) indirect C) direct D) layered E) behavioral
C
9) The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n) ________. A) department store B) supermarket C) specialty store D) discount store E) off-price retailer
C
9) The ________ established a free trade zone among the United States, Mexico, and Canada. A) Union of South American Nations B) European Union C) North American Free Trade Agreement D) Central American Free Trade Agreement E) Latin American Free Trade Association
C
When individuals call the studio, they're encouraged to access the Web site to receive a $25 e-coupon entitling them to a free half hour of dance instruction. Once they become patrons, text messages are sent to share news about featured dance instructors and upcoming special events. Which of the following promotion mix tools does Studio 19 employ to reach target customers? A) public relations B) personal selling C) direct marketing D) crowdcasting E) retailing
C
1) Which of the following statements is true of salespeople? A) They do not work with wholesalers and retailers. B) They are employed mostly in click-only companies. C) They do not represent the customers to the company. D) They represent a company to its customers by communicating and selling. E) They represent a new class of professionals who have emerged as part of the steep rise in retailing.
D
11) Which statement is most likely true about idea generation in the new product development process? A) Idea generation is most effective when it occurs after idea screening. B) Most companies set a limit for the number of ideas generated to simplify the process. C) Intrapreneurial programs enable customers to contribute to the idea generation process. D) Idea generation is usually followed by procedures that reduce the total number of ideas. E) A company can either develop ideas through internal or external sources but not through both.
D
12) A(n) ________ is considered a marketing intermediary. A) customer B) producer C) manufacturer D) wholesaler E) advertiser
D
12) Which of the following is true of raw material exporting economies? A) These economies are major exporters of agricultural products. B) These economies are poor markets for large equipment and trucks. C) These economies are major exporters of manufactured goods, services, and investment funds. D) These economies are rich in one or more natural resources but poor in other ways. E) These economies consume most of their output and barter the rest.
D
13) Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? A) SoftStar B) BlueHill C) the consumer D) Abundon E) Kevin Pinker
D
13) ________ costs refer to the sum of the fixed and variable costs for any given level of production. A) Target B) Marginal C) Value-based D) Total E) Break-even
D
14) The USA Cotton Growers Cooperative sells unfinished cotton to The Weaving Experts who refine the raw material for sale to The Sheet Factory. It's then used in the manufacturing process of 300, 400, and 500 thread count bed sheet sets. The Sheet Factory distributes their products through a number of wholesalers, including Linen Traders. Linen Traders then resells the bed sheet sets to retailer Bedding Plus who markets the products to consumers. Which of the following represents a marketing intermediary transaction? A) only Linen Traders B) only Bedding Plus C) only The Weaving Experts D) Linen Traders selling to Bedding Plus E) The Weaving Experts selling to Linen Traders
D
14) Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services? A) discount stores B) specialty stores C) factory outlets D) superstores E) off-price outlets
D
14) ________ refers to marketing via the Internet using company Web sites, online advertising and promotions, e-mail marketing, online video, and blogs. A) Digital marketing B) Social media marketing C) Direct marketing D) Online marketing E) Multimedia marketing
D
15) Which of the following examples represents a product sales-force structure? A) Venson's produces frozen dinners at its factory in Ohio, and it sells them across the country through a network of sales representatives organized into regional and territorial tiers. B) AmWeb produces an expensive brand of herbal cosmetics called "Green You" that are sold in select boutiques and beauty parlors by selling teams assigned to serve small groups of key customers. C) Verra Designers operates from its landmark store in uptown New York and customers from all over the world come to this store to buy original merchandise at steep prices. D) Carlton Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range. E) Nutters Inc., producers of cookies and other baked goods, markets its products throughout the country through a network of area and regional sales officers.
D
16) High-pressure selling will most likely work in situations that involve ________. A) valued customers B) repeat customers C) service-based sales D) one-time sales E) complex products
D
16) Lush Lawns, a new landscaping company, uses the same logo and shade of green in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Lush Lawns to promote its business? A) logistics information management B) inventory control segmentation C) niche market penetration D) integrated marketing communications E) global marketing management
D
17) A company should avoid high-pressure selling if it wants to ________. A) achieve short-term gains B) move a previous year's product models C) comply with local and federal laws D) build long-term relationships with valued customers E) maintain an accurate customer database
D
17) Amazon.com and Expedia.com are best described as ________ that sell products and services directly to final buyers via the Internet. A) search engines B) content sites C) transaction sites D) e-tailers E) iTV sites
D
17) Appliance maker Whirlpool assigns individual teams of salespeople to big retail customers such as Sears, Lowe's, Best Buy, and Home Depot. Each Whirlpool sales team aligns with the large customer's buying team. Whirlpool has most likely adopted a ________ sales-force structure. A) product B) team-based C) territorial D) market E) complex
D
17) Which of the following statements is true of retailing? A) All retail stores are full-service retail stores. B) A department store has a narrow product line with a deep assortment. C) The largest type of retail outlet is a supermarket. D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed. E) A feature common to all types of retail stores is the use of the everyday low pricing strategy.
D
18) The first part of a marketing strategy statement describes the ________ of a new product. A) planned price and distribution B) marketing budget C) marketing mix strategy D) target market, planned value proposition, and sales goals E) planned long-run sales and market share
D
19) Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally friendly techniques B) allowing suppliers or vendors to manage the inventory of products C) controlling production levels by feedback received from customers D) delivering a clear, consistent, and compelling message on the product to each brand contact E) sharing company forecasting details with shareholders
D
2) The concept of ________ lends even more importance to the salesperson's customer-relationship-building abilities. A) sales-force territory B) sales promotion C) sales-force management D) salesperson-owned loyalty E) sales-force structure
D
2) Which of the following statements is most likely true about direct and digital marketing? A) They are used to sell goods to an undifferentiated market segment. B) They are inconvenient and lengthen the process for most buyers. C) They remain unaffected by the rapid growth of technologies. D) They build customer engagement and constitute a complete model for doing business. E) They are rarely used by companies as supplementary channels.
D
20) Which of the following is a type of off-price retailer? A) specialty store B) full-service retailer C) discount store D) warehouse club E) supermarket
D
20) ________ tends to legitimize products, is very expressive, allows brand or company dramatization, and can build up a long-term image for a product. A) Direct mailing B) Telephone marketing C) Door-to-door selling D) Television advertising E) Printed-catalog marketing
D
21) Critics claim that companies in the ________ industry are more likely to introduce planned streams of new products that make older models obsolete. A) automotive B) housing C) food and beverage D) consumer electronics E) music
D
23) In a sequential new product development process, which of the following is true of the product development step? A) Product development is usually followed by a business analysis of the product. B) Product development involves introducing a product into realistic market settings. C) Product development avoids testing products on actual customers due to liability concerns. D) Product development is usually followed by test marketing. E) Product development helps top management review profit projections.
D
25) Which of the following is a form of online advertising? A) direct mail B) rich media ad C) toll-free number D) search-related ad E) printed catalog
D
29) Which of the following is most likely true about e-mail marketing? A) It cannot be personalized for individual consumers. B) It is a traditional form of direct marketing. C) It is restricted to the use of personal computers. D) It is used by marketers to send highly targeted messages. E) It is always non-intrusive in nature due to spam filters.
D
4) Power Pro, a leading manufacturer of lawn and garden equipment, releases a new line of cordless, lightweight, electric weed trimmers. To boost sales, Power Pro issues a 50 percent off coupon to the first 100 buyers at all Home Depot stores in the Northeast. Which element of the promotion mix has Power Pro used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling
D
4) The ________ concept focuses on meeting the company's short-term sales, growth, and profit needs by engaging customers and fulfilling their needs and wants more effectively and efficiently than the competition. A) societal marketing B) strategic planning C) sustainable marketing D) marketing E) cause marketing
D
5) Walmart's decision to suspend its planned expansion into India's huge but fragmented retail market due to obstacles put in place by the host nation to protect its mom-and-pop retailers is an example of ________. A) tariffs B) excise duties C) quotas D) nontariff trade barriers E) exchange controls
D
5) Which of the following is most likely true about direct and digital marketing? A) They make it increasingly difficult for sellers to adjust their prices. B) They provide sellers a high-cost alternative for reaching their markets. C) They have become less dependent on social media and the Internet. D) They provide buyers with anytime, anywhere access to products. E) They reduce the number of interaction options between buyers and sellers.
D
6) ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying in with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue's products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television
D
7) Which of the following is true of the Uruguay Round of the WTO? A) It promoted short-term global trade growth. B) It increased the world's merchandise tariffs by 50 percent. C) It reduced the influence of the WTO in agriculture. D) It toughened the international protection of intellectual property. E) It consisted of discussions that lasted for two years.
D
8) All the institutions in a channel are connected by several types of flows. When a retailer conveys to a wholesaler that a new line of hip-hop clothing is not selling, this is an example of ________. A) payment flow B) flow of ownership C) physical flow D) information flow E) promotion flow
D
8) Window Concepts has introduced a new line of windows that offer the same benefits as solar panels in reducing heating and cooling costs in homes. The state-of-the-art windows will also contribute to the slowing of global warming while providing energy reliability. The company sends a team of representatives to the National Doors and Windows Trade Show to promote the new line of windows. Which promotion mix tool has Window Concepts used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting
D
1) Which of the following is most likely true of a global firm? A) A global firm typically operates from one country. B) A global firm engages in joint partnerships overseas. C) A global firm sees the world as many different markets. D) A global firm maximizes the importance of national boundaries. E) A global firm manufactures and markets goods wherever it can do the best job.
E
10) A country's ________ shapes its product and service needs, income levels, and employment levels. A) quotas B) tariffs C) raw material export economy D) subsistence economy E) industrial structure
E
10) A firm that uses direct marketing would most likely sell its products through ________. A) one marketing intermediary B) big box retailers C) large wholesalers D) multiple intermediaries E) the company Web site
E
11) Department stores are most likely characterized by ________. A) narrow product lines B) specialty goods and services C) predatory pricing strategies D) deep assortments of luxury brands E) wide varieties of product lines
E
11) Rug Designs Inc, a manufacturer of large area rugs, markets its products throughout the United States using a network of regional sales offices. They are using a ________ sales-force structure. A) market B) customer C) product D) regional E) territorial
E
11) Which of the following is a direct digital marketing tool? A) printed catalog B) direct mail C) telephone D) television E) blog
E
13) Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure. A) customer B) product C) complex D) distributor E) territorial
E
13) Which of the following is true of consumers in the new marketing communications model? A) They are more reliant on traditional methods of marketing for product information. B) They are less informed than before about companies and product marketing techniques. C) They are more reliant on mass-media marketing methods for product information. D) They are less powerful than before in affecting the way a company markets its products. E) They are better equipped to find product and brand information on their own.
E
14) An emerging economy is one which ________. A) imports large amounts of finished textiles and automobiles B) offers few market opportunities for imported goods C) consumes all or most of its output D) needs few imports of raw textile materials and steel E) has a rapid growth in manufacturing
E
16) The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing. A) good-value B) value-added C) cost-plus D) competition-based E) target return
E
17) Which of the following statements about break-even analysis is most likely true? A) It determines how customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It is used to determine the maximum price that can be set on a product. D) It is a tool marketers use to examine the relationship between supply and demand. E) It fails to consider customer value and the relationship between price and demand.
E
18) A class-action lawsuit was brought against a national burger chain, charging that its food contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but critics continue to point out the health dangers of many fast food menu items. From the description, it can be concluded that these critics are concerned that the fast food industry is ________. A) using high-pressure sales tactics B) creating deceptive promotions C) engaging in deceptive pricing D) utilizing misleading packaging E) selling harmful products
E
18) Which type of economy consists mostly of households with very low family incomes? A) post-industrial B) developed C) emerging D) industrial E) subsistence
E
19) Companies that organize their sales force by customer and territory; product and territory; product and customer; or territory, product, and customer are using a ________ sales-force structure. A) market B) simple C) product D) territorial E) complex
E
2) A tax on an imported product designed to raise revenue or protect domestic firms is referred to as a(n) ________. A) exchange B) excise C) fine D) quota E) tariff
E
2) The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term ________ is more appropriate because it suggests a "sense-and-respond" view of the market. A) "upstream chain" B) "downstream chain" C) "market chain" D) "production chain" E) "demand chain"
E
2) ________ builds around what P&G calls the "First Moment of Truth" — the critical three to seven seconds that a shopper considers a product on a store shelf. A) Internal marketing B) Sole sourcing C) Warehousing D) Test marketing E) Shopper marketing
E
20) Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the "must-have" style in a variety of media. For which of the following could Trendy Teens be easily criticized in this scenario? A) deceptive promotion B) redlining C) high-pressure selling D) planned obsolescence E) perceived obsolescence
E
21) Which of the following is an online tool designed to engage customers and move them closer to a direct purchase or other marketing outcome? A) direct mail B) infomercial C) printed catalogue D) branded community Web site E) marketing Web site
E
22) Which of the following is a characteristic of an inside sales force? A) It travels to make sales calls on customers in the field. B) It receives administrative backup from outside sales forces. C) It cannot sell or service accounts directly. D) It eliminates the need to have an outside sales force. E) It conducts business from an office via telephone.
E
24) Backpacks Galore has an online tool that offers a wide variety of backpacks for direct purchase. The tool even allows customers to select an option to monogram their backpacks. Which of the following has Backpacks Galore most likely used? A) phishing site B) online forum C) Web blog D) community Web site E) marketing Web site
E
24) ________ use the phone, Internet, and social media to find new leads, learn about customers and their business, or sell and service accounts directly. A) Outside salespeople B) Sales managers C) Sales assistants D) Technical sales-support people E) Telemarketers and online sellers
E
25) A ________ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members. A) direct marketing system B) horizontal distribution channel C) lateral marketing system D) conventional distribution channel E) vertical marketing system
E
25) Surf's Up, a family-owned business, offers a free surf lesson with the purchase of any surfboard over $200 during the month of May. This is an example of which promotion mix element? A) direct and digital marketing B) public relations C) advertising D) personal selling E) sales promotion
E
25) Which of the following most likely suggests that marketers lack the power to create consumer needs and control market demand? A) consumer acceptance of changing clothing styles B) affordable products in disadvantage communities C) use of social media in product comparisons D) consumer interest in modern technology E) high failure rate of new products
E
26) Which of the following is true of a vertical marketing system? A) It is formed when two or more companies at one level join together to follow a new marketing opportunity. B) It is formed when a single firm sets up two or more marketing channels to reach one or more customer segments. C) It does not give overall power to any one member in the channel. D) It has each channel member acting as a separate business unit trying to maximize its own profits. E) It has one channel member owning all the other channel members or has contracts with all other channel members.
E
27) Carboi is a company that offers consumers the opportunity to buy carbon offsets, which are contributions to projects that combat global warming by reducing carbon emissions. Carboi offers contribution packages for driving, flying, and home energy use. Through Carboi, consumers can pay some of the ________ costs of their private goods and services. A) promotional B) safety C) recovery D) distribution E) social
E
28) In which of the following cases is little or no test marketing most likely recommended for a new product? A) when the product requires a major investment B) when management is unsure of the projected demand for the product C) when the risks associated with introducing the product are high D) when management is unsure of the marketing program for the product E) when the costs of developing and introducing the product are low
E
28) People who buy magazines that they like or who opt in to e-mail, social media, or mobile marketing programs rarely complain about the ads because they involve products and services of interest. This is counter to the claim that the marketing system creates ________. A) minimalistic social costs B) the creation of false wants C) excessive materialism D) high promotion costs E) cultural pollution
E
29) What is the purpose of a sales manager using a time-and-duty analysis? A) compensating salespeople B) prospecting customers C) recruiting salespeople D) forming sales teams E) supervising salespeople
E
29) Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company's sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season
E
5) In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations
E
5) Which of the following statements is most likely true about the new product development process? A) The first step in developing a new product involves determining any budgetary or distribution limitations. B) Most firms discourage employees from contributing new product ideas because of legal concerns. C) In most cases, concept testing is followed by concept development. D) A product concept should be developed for each idea before it goes through idea screening. E) Customers, competitors, distributors, and suppliers are major sources of new product ideas
E
6) Which of the following is true of the World Trade Organization (WTO)? A) It was replaced by the GATT in 1995. B) It increases tariffs and other international trade barriers. C) It lacks the power to impose international trade sanctions. D) It restricts the maximum number of member nations to 100. E) It mediates global trade disputes.
E
7) In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships. A) advertising B) public relations C) crowdsourcing D) merchandising E) personal selling
E
11) A firm that sends e-mail updates to customers about new products is engaging in personal selling. True or False
False
12) Social media marketing is a traditional direct marketing tool. True or False
False
15) Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers. True or False
False
17) Direct marketing is the longest distribution channel between a producer and consumer. True or False
False
18) Most producers sell their goods directly to final users. True or False
False
18) Unlike the other marketing mix elements, price plays a minor role in creating customer value and building customer relationships. True or False
False
19) Everyday low pricing is a cost-based pricing strategy. True or False
False
20) Value-based pricing is often product driven, and customer value perceptions are secondary. True or False
False
21) An airline runs a 6-month promotional program where all baggage fees are waived. It is using a cost-based pricing strategy. True or False
False
21) The European Union restricts trade opportunities to European firms. True or False
False
22) The two economic factors that reflect a country's attractiveness as a market are its industrial structure and import/export ratio. True or False
False
4) Sales promotions constitute the interpersonal arm of the promotional mix. True or False
False
5) In consumer product companies such as P&G or Nike, the sales force works directly with customers. True or False
False
7) While the societal marketing concept considers the future welfare of consumers and the sustainable marketing concept considers future company needs, the strategic planning concept considers both. True or False
False
23) As the weakened global economy has slowed, many companies are shifting their sights to include a new target — the so-called "bottom of the economic pyramid." True or False
True
19) Tariffs and duties are often used to force favorable trade behaviors from other nations. True or False
True
20) A multinational company may face nontariff trade barriers that include biases against its bids, restrictive product standards, or excessive host-country regulations. True or False
True
