Marketing Chapters 9, 12, 13, 14, 15, & 16 Multiple Choice Questions

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) They provide buyers with anytime, anywhere access to products.

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) They represent a company to its customers by communicating and selling.

Which of the following is an advantage of a territorial sales-force structure? A) The sale of multiple product lines to more than one industry is facilitated. B) Each salesperson is assigned to multiple geographical areas. C) Several types of sales-force structures are combined. D) Travel expenses are relatively small. E) The sales force specializes across different product lines.

D) Travel expenses are relatively small.

Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee using? A) coupons B) price packs C) samples D) advertising specialties E) rebates

D) advertising specialties

Millie Foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. In this case, the promotion tool used by the company is referred to as a(n) ________. A) price pack B) rebate C) sample D) allowance E) discount

D) allowance

Conventions, trade shows, and sales contests are types of ________. A) point-of-purchase promotions B) trade promotions C) advertising specialties D) business promotions E) premiums

D) business promotions

Salespeople write up their completed activities in a(n) ________. A) sales quota report B) profit-sharing plan C) call plan D) call report E) expense report

D) call report

43) What is the most likely disadvantage of direct investment for an investing company? A) weak relationships with local distributors B) minimal investment control C) product standardization requirements D) devalued currency risks E) excessive freight charges

D) devalued currency risks

8) Which of the following is the fastest-growing form of direct marketing? A) catalog marketing B) kiosk marketing C) direct-mail marketing D) digital marketing E) telephone marketing

D) digital marketing

Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular postal address? A) kiosk marketing B) direct digital marketing C) mass marketing D) direct-mail marketing E) telephone marketing

D) direct-mail marketing

11) 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) e-tailers

ABM Connect is one of the largest Internet service providers in India. The company's salespersons regularly contact buyers to make sure that the installation and services have been properly executed. Which of the following steps of the selling process does this scenario depict? A) approach B) presentation C) closing D) follow-up E) preapproach

D) follow-up

39) Kimlee, a food manufacturer based in China, recognizes the immense demand for noodles in the Australian market. Kimlee forms a new business venture to manufacture instant noodles and decides to share possession and control of the new business with a local food processing company. In this case, Kimlee has entered a foreign market through ________. A) licensing B) contract manufacturing C) direct investment D) joint ownership E) management contracting

D) joint ownership

Sandy Bayes works at Hilton Brews as a senior sales executive and manages all the key national accounts of his company. His job involves ensuring that key customers receive the best service from Hilton Brews. Sandy is also responsible for acquiring new customers with high consumption needs on a nation-wide basis. Despite his lack of product specialization in all the product lines, Sandy is hired for this position because of his excellent interpersonal skills. Hilton Brews has most likely adopted a ________ sales-force structure. A) product B) team-based C) territorial D) market E) complex

D) market

5) Restrictive product standards are ________. A) tariffs B) excise duties C) quotas D) nontariff trade barriers E) exchange controls

D) nontariff trade barriers

Weekly or monthly work plans used by management to get information about salespeople are referred to as ________. A) sales quotas B) ROI plans C) call objectives D) sales reports E) call plans

D) sales reports

The presentation stage of the selling process most likely involves ________. A) cold calling in the absence of potential leads B) fixing the final meeting with a customer to close a deal C) gathering information about an organization and its buyers D) showing how a company's products can solve a customer's problems E) requesting an order from the customer after handling any minor objections

D) showing how a company's products can solve a customer's problems

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions. A) consumer B) point-of-purchase C) sales-force D) trade E) business

D) trade

19) 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)search-related ad

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

Controlling the ingredients that go into certain products and reducing the level of advertising "noise" are part of proposals relating to the consumer's right to ________. A. not buy a product that is offered for sale B. expect a product to perform as claimed C. be well informed about important aspects of the product D. be protected against questionable products, promotions, and marketing practices E. influence marketing practices in ways that will improve quality of life

E

Lakeland Inc. employees get 40 hours paid leave each year to pursue volunteer projects. The company runs a service day that hosts projects in 25 countries, and it supports a nonprofit that brings young people into public service for a year. Lakeland could be most accurately described as practicing ________ marketing. A. affiliate B. undifferentiated C. differentiated D. innovative E. sense-of-mission

E

Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the VitaZing ad? A. scientific evidence B. technical expertise C. personality symbol D. testimonial evidence E. lifestyle

E

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

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

Which of the following is the best example of a salutary product? A. cereal B. cigarettes C. bottled water D. junk food E. dental insurance

E

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) A global firm manufactures and markets goods wherever it can do the best job.

31) Which of the following is true of marketing through blogs? A) Starting and maintaining blogs is expensive. B) Blogs are a form of traditional direct marketing. C) Blogs are typically used to provide automated responses to consumer conversations. D) Companies should not monitor blogs if they want to reach customers effectively. E) Blogs are an inexpensive yet personal way to connect with consumers.

E) Blogs are an inexpensive yet personal way to connect with customers

57) Which of the following is true of international divisions that are structured as geographical organizations? A) Geographical organizations are operating units under the export department. B) Geographical organizations are usually formed to implement whole-channel supply chains. C) Geographical organizations are managed by product managers, each responsible for different product groups. D) Geographical organizations are inadequate if the firm moves into joint ventures or direct investments. E) Geographical organizations are managed by country managers responsible for salespeople, distributors, and licensees in their respective countries.

E) Geographical organizations are managed by country managers responsible for salespeople, distributors, and licensees in their respective countries.

53) ________ allows consumers to gain additional information about a product or purchase a product through the use of a remote control. A) Direct-mail marketing B) Telemarketing C) Podcasting D) Data mining E) Interactive TV

E) Interactive TV

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) It conducts business from an office via telephone.

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) It mediates global trade disputes.

37) ________ ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control. A) Licensing B) Direct investment C) Contract manufacturing D) Management contracting E) Joint ownership

E) Joint ownership

Which of the following examples represents a territorial sales-force structure? A) Maxine Pharmaceuticals organizes its sales force based on each salesperson's expertise on specific drugs manufactured by the firm. B) Cherrie Boutique sells its products through a network of teams, each of which handles a specific product, but products are sold from only one location. C) Verra Designers operates from its landmark store in New York, and customers from around the world visit the store to buy original merchandise at steep prices. D) Milton's, a specialty liquor brewery, uses half of its sales force to cater to existing customers, and the rest to identify new customers. E) Oriental Meals, producers of precooked Chinese meals, markets its products throughout the country using a network of regional sales offices.

E) Oriental Meals, producers of precooked Chinese meals, markets its products throughout the country using a network of regional sales offices.

________ are offers of a trial amount of a product. A) Cash refunds B) Price packs C) Rebates D) Coupons E) Samples

E) Samples

49) Which of the following is a disadvantage of using social media for marketing? A) They are impersonal. B) They primarily provide static content. C) They do not provide information in a timely manner. D) They provide lower returns than television. E) They are largely user controlled.

E) They are largely user controlled.

32) Elise Philips, a leading fashion designer, connects with her followers through a strong online presence, promoting her brand and discussing fashion tips through articles and videos on her personal fan page. In this case, which of the following marketing forms does Elise use? A) direct e-mail B) a catalog C) a search engine D) a spambot E) a blog

E) a blog

10) A subsistence economy is one in which ________. A) much of the revenue comes from exporting one or more natural resources B) fast growth in manufacturing results in overall economic growth C) a majority of the produced outputs is exported D) manufactured goods form a majority of the exports E) a vast majority of people engage in simple agriculture

E) a vast majority of people engage in simple agriculture

Which of the following is a promotion tool used for trade promotions? A) sweepstakes B) price packs C) conventions D) rebates E) allowances

E) allowances

In which step of the selling process does a salesperson most likely meet a customer for the first time? A) prospecting B) preapproach C) presentation D) qualifying E) approach

E) approach

7) Which of the following is a direct digital marketing tool? A) printed catalog B) direct mail C) telephone D) television E) blog

E) blog

A ________ sales-force structure combines several types of sales force organizations. A) market B) simple C) product D) territorial E) complex

E) complex

56) Which of the following is a type of identity theft that uses deceptive e-mails and fraudulent Web sites to fool consumers into revealing their personal data? A) cold calling B) crowdcasting C) viral marketing D) phishing E) crowdsourcing

E) crowdsourcing

33) Under management contracting, a domestic firm ________. A) adopts management know-how from a foreign company B) manufactures the products of a foreign company C) exports its products to a foreign company D) provides financial capital to a foreign company E) exports management services to a foreign company

E) exports management services to a foreign company

53) In a global value delivery network, the second link moves company products to ________. A) distribution centers B) wholesalers C) market entry points D) points of production E) final buyers

E) final buyers

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) has a rapid growth in manufacturing

22) The difference between direct and indirect exporting is that indirect exporting involves ________. A) higher risks B) self-handling of exports C) greater returns D) more product alterations E) less investment

E) less investment

26) Providing a host-country partner the right to use a company's manufacturing process, trademark, patent, trade secret, or other item of value is referred to as ________. A) joint ownership B) direct exporting C) direct investment D) management contracting E) licensing

E) licensing

15) Which of the following is an online tool designed to interact with customers to 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) marketing Web site

18) Corell Inc. has an online tool that offers a wide variety of Corell shoes for direct purchase. The tool even allows customers to individually design their shoes. Which of the following has Corell most likely used? A) phishing site B) online forum C) Web blog D) community Web site E) marketing Web site

E) marketing Web site

54) In managing their international marketing activities, most companies first ________. A) organize an import department B) create an international division C) initiate foreign direct investment D) form a domestic subsidiary E) organize an export department

E) organize an export department

What is the primary goal of trade promotions? A) boosting long-term relationships with final buyers B) motivating salespeople to attend trade shows C) generating qualified business leads and contacts D) rewarding customers for frequent purchases E) persuading resellers to carry a brand

E) persuading resellers to carry a brand

In which step of the selling process does a salesperson learn as much as possible about a prospective customer before making a sales call? A) approach B) follow-up C) demonstration D) handling objections E) preapproach

E) preapproach

Kartoffel, a food processing company, offers a free toy inside every 50g packet of their potato chips. Which of the following promotion tools does this exemplify? A) rebate B) coupon C) price pack D) sample E) premium

E) premium

Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children's ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard? A) prospecting B) qualifying C) follow-up D) handling objections E) presentation and demonstration

E) presentation and demonstration

49) Kola, a leading soft drink manufacturer, has recently forayed into the Middle East markets. Based on its research that consumers in the Middle East prefer sweeter drinks, it is manufacturing soft drinks with extra sugar to meet the local requirements. In this scenario, Kola is using a(n) ________ strategy to market its product. A) communication adaptation B) undifferentiated marketing C) straight product extension D) product invention E) product adaptation

E) product adaptation

Sales promotions targeted at ________ are called trade promotions. A) government buyers B) salespeople C) business customers D) final buyers E) retailers and wholesalers

E) retailers and wholesalers

33) Unsolicited and unwanted commercial e-mail is referred to as ________. A) an infomercial B) an advertorial C) viral marketing D) social media E) spam

E) spam

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) subsistence

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) supervising salespeople

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) tariff

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) territorial

The difference between an inside sales force and an outside sales force is that an outside sales force ________. A) acquires more decision-maker contacts each day B) consists mostly of telemarketers and Internet sellers C) conducts business from headquarters via telephone D) spends less money to reach and support customers E) travels frequently to call on customers in the field

E) travels frequently to call on customers in the field

45) Compared to adapted global marketing, standardized global marketing ________. A) adjusts promotional efforts to address cultural differences in target markets B) results in additional marketing and manufacturing costs C) relies on social media to develop customer relationships D) usually results in diluted brand power over time E) uses the same marketing mix worldwide

E) uses the same marketing mix worldwide

11) Rent, electricity, and executive salaries that do not vary with production level are referred to as ________ costs. A) fixed B) variable C) break-even D) target E) promotional

a

12) ________ costs are also known as overhead. A) Fixed B) Variable C) Target D) Capital E) Payroll

a

2) ________ is the only element in the marketing mix that produces revenue. A) Price B) Place C) Promotion D) Product E) Profit

a

21) 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

22) There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products. An individual seller cannot charge more than the going market price without the risk of losing business to the other stores. What type of market does this example represent? A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a black market

a

25) The relationship between the price charged for a product and the resulting demand level can be shown in a ________. A) demand curve B) supply curve C) elastic demand slope D) break-even chart E) inelastic demand slope

a

28) A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) market-skimming pricing B) target costing C) deceptive pricing D) market-penetration pricing E) predatory pricing

a

30) Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product? A) The product's quality and image support its high price. B) Lower-priced alternatives can enter the market easily. C) Low prices promote more market growth than high prices. D) The product's price matches its manufacturing costs. E) A low-price position of the product is maintained.

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

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

50) When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer sends the customer a check. A) cash rebate B) quantity discount C) promotional allowance D) flash sale E) functional discount

a

53) Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) reference

a

7) A value-based pricing strategy most likely begins with ________. A) assessing customer needs B) designing a stylish product C) evaluating the product's costs D) promoting the product's benefits E) setting a price based on perceived value

a

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? A) location-based pricing B) market-skimming pricing C) product-form pricing D) time-based pricing E) market-penetration pricing

a

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. A) product line B) optional-product C) by-product D) product bundle E) captive-product

a

Which group is most likely offered functional discounts by manufacturers? A) trade-channel members that perform sales tasks B) consumers who buy products in large quantities C) buyers who pay their bills before the due date D) buyers who purchase merchandise out of season E) retailers that participate in advertising programs

a

13) 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

16) ________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking. A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added

b

19) Which of the following is an external factor that affects pricing decisions? A) the marketing mix B) competition C) top management D) marketing objectives E) marketing strategy

b

23) Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

b

29) The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________. A) market-skimming pricing B) market-penetration pricing C) value-added pricing D) target costing E) deceptive pricing

b

46) Pricing a product based on consumers' reference prices is referred to as ________ pricing. A) geographical B) psychological C) allowance D) by-product E) captive-product

b

48) ________ prices are carried in buyers' minds and used when looking at a given product. A) Captive-product B) Reference C) Promotional D) Geographical E) Dynamic

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

Combining several products and offering the collection at a reduced price is referred to as ________ pricing. A) by-product B) product bundle C) captive-product D) optional-product E) product line

b

Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________. A) functional discount B) seasonal discount C) promotional allowance D) trade-in allowance E) quantity discount

b

Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing. A) by-product B) two-part C) optional-product D) segmented E) promotional

b

Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________. A) market-skimming pricing B) market-penetration pricing C) optional-product pricing D) by-product pricing E) allowance pricing

b

Selling accessory products along with the main product is referred to as ________ pricing. A) product bundle B) optional-product C) market-penetration D) by-product E) product line

b

Which of the following statements is true of consumer promotions? A) Their primary objective is to persuade resellers to carry a brand. B) They include a wide range of tools like samples, coupons, and refunds. C) They include the use of display allowances. D) They are primarily used to generate business leads and reward customers. E) They include the use of conventions and trade shows.

b) They include a wide range of tools like samples, coupons, and refunds

1) ________ refers to the amount of money charged for a product or service. A) Payroll B) Profit C) Price D) Cost E) Salary

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

15) A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even

c

20) 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

24) Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) pure monopsony

c

26) When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________. A) elastic B) flexible C) inelastic D) variable E) cyclical

c

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

47) Consumers rely less on price to judge the quality of a product when they ________. A) lack information about the product B) are unable to research the product C) have prior experience with the product D) are unable to judge the quality of the product E) rely on cues from sellers to differentiate a high or low price

c

52) Which of the following pricing strategies is the opposite of FOB-origin pricing? A) basing-point pricing B) dynamic pricing C) uniform-delivered pricing D) freight-absorption pricing E) zone pricing

c

55) Chef Brown's Health Food Store sells nutritional, energy-producing foods. Product prices are adjusted frequently to meet the needs of individual customers and situations. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing. A) zone B) competition-based C) dynamic D) basing-point E) penetration

c

6) Value-based pricing is the reverse process of ________ pricing. A) good-value B) target costing C) cost-based D) value-added E) competition-based

c

How do firms that use captive-product pricing make up for the low prices of their main products? A) They reduce the cost of the captive products. B) They provide the captive products as freebies. C) They set high markups on the captive products. D) They increase the price of the main products. E) They offer the captive products and main products together at a reasonable price.

c

Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. A) time-based B) location-based C) customer-segment D) by-product E) product form

c

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product? A) The product's quality supports its high price. B) Alternative products can enter the market easily. C) The market for the product is highly price sensitive. D) Prices increase incrementally as sales volume increases. E) Production costs rise with an increase in marketing efforts.

c

14) ________ 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

42) When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs, the firm is granting ________. A) cash discounts B) seasonal discounts C) quantity discounts D) promotional allowances E) trade-in allowances

d

45) When a firm varies the price of a product by the season, month, day, or even hour, without changing product features, it is using ________ pricing. A) product form B) market-penetration C) market-skimming D) time-based E) value-added

d

49) What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) geographical pricing D) promotional pricing E) dynamic pricing

d

54) Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) uniform-delivered

d

8) ________ pricing involves charging a constant low price with few or no temporary price discounts. A) High-low B) Target return C) Cost-plus D) Everyday low E) Market-skimming

d

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________. A) functional discount B) cash discount C) seasonal discount D) trade-in allowance E) by-product allowance

d

17) 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

18) 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

51) Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location? A) basing-point pricing B) freight-absorption pricing C) FOB-origin pricing D) zone pricing E) uniform-delivered pricing

e

Setting a price for products that must be used along with a main product is known as ________ pricing. A) by-product B) market-penetration C) product line D) product bundle E) captive-product

e

Which of the following is an economic factor that affects the pricing decisions of a company? A) market-penetration practices B) top management decisions C) promotional activities D) reseller policies E) interest rates

e

Ingenious Group views and organizes its marketing activities from the viewpoint of its buyers. Management works hard to sense, serve, and satisfy the needs of its well-defined group of buyers. Which of the following does Ingenious Group most likely practice? A. consumer-oriented marketing B. societal marketing C. sense-of-mission marketing D. affiliate marketing E. innovative marketing

A

Remington Motors releases a new line of hybrid electric vehicles called Electra. The line promises superior mileage and excellent horsepower in an environmentally friendly automobile. Remington decides to use advertising as the promotional tool for the car's launch. Which of the following would qualify as an advertisement for Electra? A. a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed" B. a press conference to discuss the various safety issues, actual mileage, and environmental features of Electra C. the use of dedicated sales personnel in dealer showrooms to explain the qualities of Electra to potential customers D. the involvement of a celebrity at the launch of Electra to endorse the hybrid car E. a buyers-only lottery where Electra buyers have a chance of winning a prize

A

What are deficient products? A. products that have neither immediate appeal nor long-run benefits B. products that give high immediate satisfaction but hurt consumers in the long run C. products that have low appeal but may benefit consumers in the long run D. products that are either unsafe or inferior E. products in the decline stage of the product life cycle

A

Which of the following is a traditional right of sellers? A. the right to introduce any product in any size and style, provided it is not hazardous to personal health or safety B. the right to expect a product to be safe C. the right to expect a product to perform as claimed D. the right to consume now in a way that will preserve and sustain the world for future generations of consumers E. the right to be well informed about important aspects of a product

A

Which statement is most likely true about the affordable method of setting an advertising budget? A. It typically overlooks how promotion affects sales. B. It always results in overspending on advertising. C. It is especially ideal for long-range market planning. D. It leads to an overly fixed annual promotion budget. E. It is most often used by firms with large advertising budgets.

A

Zephyr Inc., an electronics manufacturer, wants to enter the commercial tracking device market with its latest product, FindIt. Unlike other tracking devices, FindIt is very small and relatively cheap, but it can be used only within small areas as it has a low detection-range. Which type of advertising would be best for FindIt? A. informative advertising B. reminder advertising C. classified advertising D. comparative advertising E. personalized advertising

A

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) A product sales-force structure is characterized by specialization along product lines.

29) ________ are online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics. A) Blogs B) Catalogs C) Search engines D) Spam posts E) Viral messages

A) Blogs

30) ________ is a method of going global in which a company makes agreements with producers in the foreign market to produce its product or provide its service. A) Contract manufacturing B) Direct investment C) Acquisition D) Exporting E) Management contracting

A) Contract manufacturing

40) Which of the following is most likely a benefit of joint ownership? A) It allows a firm to gain the financial and managerial resources that it may otherwise lack. B) It is the simplest way for a domestic company to enter a foreign market. C) It minimizes the need to build a new manufacturing facility in the foreign market. D) It allows one firm to acquire complete ownership of the other firm in the venture. E) It provides significant economies of scale for both the local firm and the foreign investor.

A) It allows a firm to gain the financial and managerial resources that it may otherwise lack.

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) It clearly defines each salesperson's job and establishes accountability.

26) Which of the following is true of viral marketing? A) It is the digital version of word-of-mouth marketing. B) It refers to online marketing problems caused by technical glitches. C) It is another term for the unethical invasion of online privacy. D) It is an automated system that manages digital sales and marketing functions. E) It is a system that allows a supplier to access a customer's inventory levels online.

A) It is the digital version of word-of-mouth marketing.

36) Which of the following is a drawback of management contracting? A) It prevents a company from setting up its own operations for a period of time. B) It is a high-risk method of getting into a foreign market. C) It yields income to the contracting firm only much later in the process. D) It does not provide the option of buying shares in the managed company later on. E) It requires a domestic firm to export its products to a foreign company.

A) It prevents a company from setting up its own operations for a period of time.

23) ________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services. A) Joint venturing B) Indirect exporting C) Direct investment D) Importing E) Direct exporting

A) Joint venturing

36) Which of the following is most likely an advantage of social media marketing? A) Social media are targeted and personal. B) Social media campaign results are easily measured. C) Social networks are largely marketer controlled. D) Social media allow marketers to engage in multichannel sales. E) Social media campaigns are simply implemented and rarely backfire.

A) Social media are targeted and personal.

47) Which of the following is an example of inbound telemarketing? A) Sterrns Media advertises its services by sending letters to potential customers and prompting them to contact the firm through a toll-free number. B) Sterrns Media purchases customer information and later cold calls these customers to generate potential leads. C) Sterrns Media spends a lot of time and effort to train its sales force to call businesses and inform them about its B2B products. D) Sterrns Media utilizes interactive cable systems to enable customers to obtain product information by using their TV remotes. E) Sterrns Media airs advertising programs called infomercials to attract viewers and get them to order products from its Web site.

A) Sterrns Media advertises its services by sending letters to potential customers and prompting them to contact the firm through a toll-free number.

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) The performance difference between an average salesperson and a top salesperson is generally substantial.

8) Which of the following is true of free trade zones? 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) They are groups of nations organized to work toward common goals.

Which of the following is most likely true about salespeople in a field sales force? A) They build relationships with customers by traveling to see them. 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) They build relationships with customers by traveling to see them.

45) Which of the following is an advantage of printed catalogs? A) They drive online and mobile sales. B) They offer an almost unlimited amount of merchandise. C) They are produced in multiple presentation formats, including search and video. D) They result in reduced mailing costs. E) They allow real-time merchandising.

A) They drive online and mobile sales.

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) They export their goods to other types of economies for raw materials.

17) Which of the following is most likely true of branded community Web sites? A) They provide engaging content. B) They offer little information about the brand. C) They contain interactive selling features. D) They mostly contain static content. E) They contain heavy pop-up ads of a firm's products

A) They provide engaging content.

________ are sales promotion tools used to generate new business leads, stimulate purchases, educate customers, and motivate salespeople. A) Trade shows B) Rebates C) Allowances D) Point-of-purchase promotions E) Sweepstakes

A) Trade shows

60) Which of the following is most likely true about a global organization? A) Worldwide policies are planned by top corporate management. B) Global operating units report to international division chiefs. C) Executive training is restricted to domestic operations. D) Employees are recruited exclusively from the home country. E) It considers itself a national marketer that sells abroad.

A) Worldwide policies are planned by top corporate management.

Sheldon Parks works as a salesperson in a large company that sells vending machines and beverages like coffee, tea, and hot chocolate. He meets Rosa Thoms, a potential client who heads the administration department of a large MNC, and speaks to her at length to determine the kind of vending machine and beverages her company would need. After understanding the specifications, he provides her team of employees with samples to obtain their feedback. At which step of the selling process is Sheldon in the above scenario? A) approach B) preapproach C) qualifying D) prospecting E) closing

A) approach

Which term refers to a tool used by managers to supervise their salespeople? A) call plan B) sales quota C) sales contest D) bonus plan E) straight commission

A) call plan

43) The promotion of products and services through printed material with multiple pages that sell multiple products is referred to as ________ marketing. A) catalog B) viral C) telephone D) television E) e-mail

A) catalog

6) Which of the following is a traditional direct marketing tool? A) catalog B) e-mail C) blog D) online advertisement E) Web site

A) catalog

20) Which of the following is the largest form of online advertising? A) contextual advertisements B) display advertisements C) digital catalogs D) community Web sites E) blog posts

A) contextual advertisements

3) Which of the following is the fastest-growing form of marketing? A) direct marketing B) undifferentiated marketing C) internal marketing D) mass marketing E) standardized marketing

A) direct marketing

42) Eric Dylan is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Eric targets a selective market of individuals who have recently donated to international charities by sending letters with charity information and donation instructions. Eric uses ________ in this scenario. A) direct-mail marketing B) mass marketing C) telephone marketing D) digital marketing E) kiosk marketing

A) direct-mail marketing

50) Which of the following direct marketing forms includes infomercials? A) direct-response television marketing B) outbound telephone marketing C) print-catalog marketing D) direct-mail marketing E) face-to-face marketing

A) direct-response television marketing

AirNetwork, a telecommunications company, sponsors a rock concert by a famous band in order to further its brand visibility. This is an example of a(n) ________. A) event marketing program B) premium C) point-of-purchase promotion D) trade promotion E) price pack

A) event marketing program

What is the last step in the selling process? A) follow-up B) closing C) handling objections D) presentation E) prospecting

A) follow-up

In which of the following steps of the selling process does a salesperson seek out, clarify, and overcome any customer disapproval to buying? A) handling objections B) closing C) follow-up D) prospecting and qualifying E) preapproach

A) handling objections

24) 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) higher return rates

15) An emerging economy is also known as a(n) ________ economy. A) industrializing B) industrial C) subsistence D) raw material exporting E) developed

A) industrializing

56) Lemon N' Honey is a juice manufacturing company in the United States. It exports its products to Australia, licenses to China, has a joint ownership venture in France, and owns a subsidiary in Brazil. The firm will most likely need to create a(n) ________ to handle all its worldwide activities. A) international division B) domestic market C) value delivery network D) export department E) domestic division

A) international division

55) Green Gardens sells gardening and landscaping goods and equipment. The marketing department places an unmanned machine in the store with touchscreen technology to provide product information. Consumers can use this machine to learn about the company's products and services. The company's marketing form is best referred to as ________ marketing. A) kiosk B) mobile C) telephone D) interactive E) personalized

A) kiosk

28) Montano Boutiques promotes its brand in new international markets by providing rights to local boutiques to use its patented designs and brand name. In this case, Montano Boutiques' market-entering strategy is referred to as ________. A) licensing B) exporting C) joint ownership D) contract manufacturing E) management contracting

A) licensing

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) market and territorial

Which of the following marketing forms enables consumers to learn about products by scanning Quick Response codes? A) mobile marketing B) interactive TV C) indirect marketing D) inbound telephone marketing E) direct-response television marketing

A) mobile marketing

34) Glenda is searching airline schedules on HolApp, a mobile Web application. While browsing the application, a banner appears on the mobile screen showcasing offers and discounts on air tickets. The banner is best referred to as a(n) ________. A) online display advertisement B) contextual advertisement C) infomercial D) phishing scam E) advertorial

A) online display advertisement

In which step of the selling process does a salesperson set call objectives? A) preapproach B) approach C) presentation D) qualifying E) prospecting

A) preapproach

52) Regardless of how companies go about pricing their products, their foreign prices probably will be higher than their domestic prices for comparable products. This is known as the ________ problem. A) price escalation B) demand escalation C) inflation D) skimming price E) deflation

A) price escalation

Which consumer promotion tool involves selling two products for the price of one? A) price packs B) coupons C) rebates D) advertising specialties E) samples

A) price packs

3) The purpose of a quota is to ________. A) protect local employment B) provide competition to local industry C) eliminate trade barriers between nations D) increase the amount of foreign imports E) increase the amount of foreign exchange

A) protect local employment

In which of the following promotion tools does a customer send a proof of purchase to a manufacturer, who then refunds part of the purchase price by mail? A) rebate B) coupon C) sample D) premium E) price pack

A) rebate

How have social media tools most likely affected personal selling? A) reducing the use of person-to-person selling efforts B) increasing the costs of selling products and services C) changing the basic fundamentals of interpersonal selling D) increasing the number of product reports given to customers E) slowing the sales force response rate to customers' problems

A) reducing the use of person-to-person selling efforts

An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising. A. scientific evidence B. testimonial evidence C. technical expertise D. mood or image E. fantasy

B

Beverages that are high in sugar are called ________ products. A. deficient B. pleasing C. salutary D. desirable E. salubrious

B

Inglast, a chocolate producer, is faced with a class action suit when customers find pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used? A. classified B. informative C. comparative D. personalized E. reminder

B

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

Products that give high immediate satisfaction but may hurt consumers in the long run are called ________ products. A. deficient B. pleasing C. salutary D. desirable E. threatening

B

The ________ style of advertising shows ordinary people clearly using a product in a normal setting. A. personality symbol B. slice of life C. mood or image D. testimonial evidence E. technical expertise

B

When a company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society's long-run interests, it is most likely practicing ________ marketing. A. value B. societal C. sense-of-mission D. consumer-oriented E. customer value

B

Which of the following is most likely a difference between advertising and sales promotions? A. Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B. Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately. 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 are.

B

________ advertising would most likely result in advertising wars between competitors. A. Reminder B. Comparative C. Personal D. Informative E. Classified

B

________ involves thinking ahead to create products that are easier to recover, reuse, recycle, or safely return to nature after usage, thus becoming part of the ecological cycle. A. Consumerism B. Design for environment C. Beyond greening D. Pollution control E. Pollution prevention

B

10) 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) Digital networks allow marketers many ways to build customer relationships

41) ________ is a method of entering a foreign market by developing foreign-based assembly or manufacturing facilities. A) Exporting B) Direct investment C) Licensing D) Indirect exporting E) Management contracting

B) Direct investment

46) What is telemarketing? A) It is the process of promoting products through 30-minute-long infomercials. B) It is a form of marketing that uses the telephone to sell directly to businesses and consumers. C) It is the process of marketing products and services using direct-response television advertising. D) It is a marketing system where product information is provided through unmanned ordering machines. E) It is the process of selling products through affiliate networks and social media sites.

B) It is a form of marketing that uses the telephone to sell directly to businesses and consumers.

60) Which of the following is true of the Privacy Promise launched by the Direct Marketing Association? A) It forbids all DMA members from spending excessively on digital advertising. B) It requires all DMA members to notify customers when any personal information is sold to others. C) It recommends that DMA members help each other by sharing customer psychographic data. D) It forbids DMA members from sending e-mail, mail, or phone offers to any customer. E) It encourages DMA members to create more digital content that is tailored for children under age 13.

B) It requires all DMA members to notify customers when any personal information is sold to others.

37) ________ marketing features marketing messages, promotions, and other content delivered to on-the-go consumers through their portable electronic devices. A) Direct-mail B) Mobile C) Mass D) Viral E) Kiosk

B) Mobile

________ 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) Sales quotas

47) ________ means marketing a product in a foreign market without making any changes to the product. A) Product adaptation B) Straight product extension C) Communication extension D) Product invention E) Communication adaptation

B) Straight product extension

31) Which of the following is most likely a drawback of contract manufacturing? A) There are low chances of quickly starting the process. B) There is decreased control over the manufacturing process. C) There are significant political and economic risks involved. D) There is little opportunity of later forming a partnership. E) There is no possibility of buying out the local manufacturer

B) There is decreased control over the manufacturing process.

9) In which of the following cases is a firm employing multichannel marketing? 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) Wingate Retail sells its products through e-tailers and hundreds of physical superstores.

Which of the following is most likely an example of a business promotion tool? A) a free DVD for customers who purchase a new television at a retail store B) a trade fair showcasing a new audio system developed by an electronics firm C) a sweepstakes program inviting customers to enter for the chance to win a new car D) a toaster being sold at half its list price for any buyer who purchases a food processor E) a display allowance for retailers who feature a manufacturer's product in a favorable manner

B) a trade fair showcasing a new audio system developed by an electronics firm

22) 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) contextual advertisement

44) Botsford, a U.S. firm, builds automotive transmissions in its manufacturing facility in Taiwan to capitalize on the availability of cheap labor. Botsford's involvement in foreign markets is most likely through ________. A) joint ownership B) direct investment C) management contracting D) contract manufacturing E) indirect exporting

B) direct investment

The process in which printed catalogs, brochures, samples, and DVDs are distributed to customers using highly selective mailing lists is known as ________. A) mass marketing B) direct-mail marketing C) telemarketing D) internal marketing E) kiosk marketing

B) direct-mail marketing

19) The simplest way to enter a foreign market is through ________. A) joint ownership B) exporting C) direct investment D) licensing E) contract manufacturing

B) exporting

In which of the following steps of the selling process does a salesperson make sure that there is proper installation and support after a buyer receives the initial order? A) closing B) follow-up C) handling objections D) presentation E) prospecting

B) follow-up

51) A 30-minute or longer advertising program on television that markets a single product is called a(n) ________. A) phishing program B) infomercial C) podcast D) catalog E) spambot

B) infomercial

52) Haynes, a manufacturer of consumer electronics, created a 30-minute program describing the various ways in which its products could be used and aired the program on television with a toll-free number that interested consumers could call. In this case, Haynes' program is referred to as a(n) ________. A) virtual world B) infomercial C) viral video D) podcast E) e-catalog

B) infomercial

25) Which of the following is a type of joint venture? A) direct exporting B) management contracting C) direct investment D) retailing E) wholesaling

B) management contracting

34) Pizzaria, a renowned restaurant in Italy, enters into an agreement with Ruth's Pizza House in the United States to operate a chain of restaurants. Ruth's will provide capital for running the chain and Pizzaria will contribute its world-renowned expertise on consumer tastes. In this case, Pizzaria enters a foreign market through ________. A) contract manufacturing B) management contracting C) licensing D) joint ownership E) direct investment

B) management contracting

57) Fox Scully received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates. The e-mail asked customers to provide their address, date of birth, Social Security number, and current mortgage information in order to receive a free loan quote. Suspicious of the offer, Fox researched the company and discovered that the e-mail was fraudulent. This is an example of ________. A) cold calling B) phishing C) crowdsourcing D) data mining E) viral marketing

B) phishing

59) The Children's Online Privacy Protection Act requires online operators targeting children to ________. A) educate children about digital technologies B) post privacy policies on their sites C) collect and store the personal information of parents of these children D) collect personal information from children under age 13 for security purposes E) avoid sending e-mails to the parents of children whom they target

B) post privacy policies on their sites

Simpson Ltd., located in San Diego, provides a range of household and healthcare goods to consumers within the region. The firm also runs a number of local hotels and resorts under its brand name. Simpson employs different sales forces for each major division, so there are sales teams for household goods, healthcare goods, hotel management, and resort management. Simpson has most likely adopted a(n) ________ sales-force structure. A) market B) product C) customer D) territorial E) complex

B) product

Easy Life manufactures a wide range of kitchen appliances, healthcare products, and cosmetics. Its salespeople are divided on the basis of their expertise in a product category. Again, within each category, they are divided into teams addressing large retail customers, convenience stores, and the general public. 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) product and market

What is the first step in the selling process? A) approach B) prospecting C) demonstration D) handling objections E) sales presentation

B) prospecting

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) raw material exporting

Fruity Loop, a leading manufacturer of fruit-juices, introduces a new range of potato chips. To promote this new product, it offers a packet of potato chips free with every bottle of Fruity Loop juice. Which of the following promotion tools is Fruity Loop using in this case? A) rebates B) samples C) coupons D) advertising specialties E) price packs

B) samples

55) Through which of the following routes do firms generally get into international marketing? A) buying shares of an international company B) shipping products to foreign customers C) organizing an international division D) establishing a joint venture E) acquiring a foreign firm

B) shipping products to foreign customers

25) Which of the following would a firm most likely use to share video content? A) corporate intranets B) social media sites C) viral blogs D) media portals E) digital kiosks

B) social media sites

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) territorial sales-force structure

27) Clenzo is a company that provides house cleaning services in major urban and suburban areas. Marketers at Clenzo developed a short, humorous video promoting the company's services and hope that customers who see the video will be so entertained that they will pass the video on to their friends and colleagues. The marketers at Clenzo are using techniques to facilitate ________. A) direct-mail marketing B) viral marketing C) catalog marketing D) contextual advertising E) display advertising

B) viral marketing

58) Which of the following is an international division organized based on different merchandise categories? A) global organization B) world product group C) geographical organization D) export department E) international subsidiary

B) world product group

Dazed is a bar which mostly plays trance music and has a dedicated day every week for local bands to perform. To build strong customer relations, Dazed sends text messages to customers, telling them about happy hours, bands playing that week, dedicated genre nights, and other activities. Which of the following promotion mix tools does Dazed employ to reach target customers in this scenario? A. public relations B. personal selling C. direct marketing D. crowdcasting E. retailing

C

In the competitive-parity method of setting an advertising budget, the budget is set based on ________. A. a percentage of future sales B. the total revenues that a company makes C. the amount spent by similar companies in the same industry D. objectives set by the company and the cost required to accomplish them E. a percentage of current sales

C

Innovative marketing most likely involves ________. A. protecting the natural environment B. considering the consumer's point of view C. seeking real product and marketing improvements D. defining goals in broad social terms rather than narrow product terms E. placing an emphasis on increasing short-run sales rather than long-term value

C

Lazer Telecom, a cell phone manufacturer, has signed a contract with a production house to fund a new movie. The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen. What kind of advertising technique has Lazer Telecom most likely adopted in this example? A. geofencing B. advertainment C. product placement D. vertical integration E. subliminal advertising

C

Pearl Sands is a resort in the town of Willington. It attracts the maximum number of customers in the summer. In the spring, Pearl Sands sponsors shows on TV and puts up billboards in Willington and the surrounding towns. The billboards advertise Pearl Sands as an ideal holiday spot, whether for a weekend getaway in the summer heat or for a family vacation. This is an example of a ________ strategy. A. push B. vertical integration C. pull D. publish-subscribe E. direct marketing

C

Qtopia Inc. is currently designing a new product line with the goal of making each product easy to recover, reuse, or recycle. Qtopia Inc. plans to recover many of these products when they reach the end of their life cycle and reuse components in new products. In this case, Qtopia Inc. is demonstrating ________. A. pollution prevention B. pollution control C. product stewardship D. the marketing concept E. the selling concept

C

When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are accused of the discriminatory practice of ________. A. perceived obsolescence B. reverse redlining C. redlining D. puffery E. planned obsolescence

C

Which of the following is a disadvantage of using online, mobile, and social media for advertising? A. The costs are high. B. Audience selectivity is low. C. The audience controls ad exposure. D. The interactive capabilities are low. E. There is little scope for personalization.

C

Which sustainable marketing principle emphasizes building long-run consumer loyalty and relationships? A. sense-of-mission marketing B. innovative marketing C. customer value marketing D. consumerist marketing E. differential marketing

C

________ are certificates that save buyers money while they purchase specified products. A) Price packs B) Samples C) Coupons D) Point-of-purchase promotions E) Premiums

C) Coupons

42) Which of the following is an advantage of direct investment? A) Direct investment involves fewer risks than joint ownership. B) Direct investment ensures that a firm is shielded from market changes. C) Direct investment allows a firm to keep full control over the investment. D) Direct investment involves minimal financial or time expenditures. E) Direct investment protects the firm from currency devaluation.

C) Direct investment allows a firm to keep full control over the investment.

1) ________ consists of connecting directly with carefully targeted consumers, often on a one-to-one, interactive basis. A) Undifferentiated marketing B) Mass marketing C) Direct marketing D) Internal marketing E) Standardized marketing

C) Direct marketing

59) ________ are international divisions responsible for the sales and profits of their own operating units. A) World product groups B) Geographical organizations C) International subsidiaries D) Global organizations E) Export departments

C) International subsidiaries

32) Which of the following is most likely a benefit of contract manufacturing? A) Investing companies have complete control over the foreign manufacturer's processes. B) Investing companies gain significant profits from handling the manufacturing of products. C) Investing companies that are new entrants in international markets get a chance to start faster. D) Investing companies provide new jobs in their home countries by developing manufacturing facilities. E) Investing companies do not require the services of an overseas marketing organization or network.

C) Investing companies that are new entrants in international markets get a chance to start faster.

54) Which of the following is true with regard to kiosk marketing? A) It can be used for selling products, but not services. B) It cannot be used to order goods that are physically unavailable in a store. C) It can be used to provide customized product recommendations. D) It can be used only to generate printed catalogs for small purchases. E) It can be used to circulate viral videos and infomercials.

C) It can be used to provide customized product recommendations.

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) It can unearth problems and provide solutions that no individual salesperson could.

28) Which of the following is a primary disadvantage of viral marketing? A) The costs of viral marketing are generally too high for most companies. B) The brand associated with the viral message is usually forgotten. C) Marketers have little control over who receives a viral message. D) Viral messages are less likely to be viewed than other types of online promotions. E) Viral messages are blocked by most search engines.

C) Marketers have little control over who receives a viral message.

9) Which of the following established a free trade zone between 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) North American Free Trade Agreement

21) ________ might appear anywhere on an Internet user's screen when a user is browsing through an article and 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) Online display ads

Which of the following is a disadvantage of using social media tools for selling? A) Social media tools have transformed the fundamentals of selling. B) Social media tools tend to make sales forces less efficient. C) Social media tools can intimidate low-tech sales people or clients. D) Social media tools make it difficult to spot buying trends. E) Social media tools increase the time taken to solve customer problems.

C) Social media tools can intimidate low-tech sales people or clients.

38) Which of the following is true of joint ownership? A) The domestic firm exports management services rather than products. B) Foreign investors gain complete possession and control over the local firm. C) The arrangement is mandatory for businesses to enter some foreign markets. D) A domestic company seldom needs a host country partner to enter into the market. E) The domestic company loses its title of ownership to foreign investors in the arrangement.

C) The arrangement is mandatory for businesses to enter some foreign markets.

30) Which of the following is a drawback of using blogs as a marketing medium? A) Advertising on a blog is typically very expensive. B) It is difficult to use blogs to reach highly targeted audiences. C) The content of a blog is difficult to control. D) A company cannot have more than one blog. E) Blogs do not provide the kind of personalized medium that today's marketers want.

C) The content of a blog is difficult to control.

4) How has the Internet most likely affected direct marketing? A) The time taken by direct marketers to reach customer segments has increased. B) The role of technology in direct marketing has become less intense. C) The expenditures of marketers on direct marketing have increased. D) The growth of digital sales has seen a significant downturn. E) The number of mass marketing forms has expanded.

C) The expenditures of marketers on direct marketing have increased.

27) Which of the following is an advantage of licensing? A) The licensee is not required to invest money in the business. B) The licensor has more control over the licensee than it does in its own operations. C) The licensee gains recognition without having to develop a product from scratch. D) The licensor earns profits without having to share its intellectual property with anyone. E) The licensor faces no threats of competition from the licensee after the contract ends.

C) The licensee gains recognition without having to develop a product from scratch.

35) Which aspect of niche online social networks makes the medium most appealing to marketers? A) They help marketers target the best undifferentiated market segment. B) They are used by a majority of Internet users in the U.S. and overseas. C) They cater to the needs of small communities of like-minded people. D) They guide organizations on how to set up social media networks. E) They allow marketers to control the conversations on the network.

C) They cater to the needs of small communities of like-minded people.

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) a host-country regulation

44) Bradley Springs, a chain of superstores, promotes its business by handing out printed materials which contain lists and descriptions of an assortment of its products. In this case, the company's promotional strategy is referred to as ________. A) e-mail marketing B) telemarketing C) catalog marketing D) kiosk marketing E) viral marketing

C) catalog marketing

In which of the following steps of the selling process does a salesperson ask a buyer for an order? A) preapproach B) qualifying C) closing D) prospecting E) approach

C) closing

51) When companies fully adapt their advertising messages to local markets, they follow a strategy of ________. A) communication extension B) product invention C) communication adaptation D) straight product extension E) product adaptation

C) communication adaptation

14) 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) create a Web site

16) 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) creating customer-product engagement

12) Which of the following is a transaction site? A) Wikipedia B) Yahoo C) eBay D) IMDB E) Facebook

C) eBay

21) Valdo, a cosmetic firm located in the United States, markets its products in Asian and European countries through independent distributors. In this case, Valdo has entered international markets through ________. A) joint ownership B) joint venturing C) indirect exporting D) direct investment E) franchising

C) indirect exporting

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 semifinished goods. The country's industrial structure is referred to as a(n) ________ economy. A) agricultural B) emerging C) industrial D) raw material exporting E) subsistence

C) industrial

58) Which of the following is generally regarded as the toughest issue of public policy and ethics confronting the direct marketing industry? A) customization of search results B) unwanted e-mail spam C) invasion of consumer privacy D) increasing costs of browsing E) restrictions on digital offers and discounts

C) invasion of consumer privacy

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) market

In which of the following structures does a company organize its sales force along client 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) market sales-force structure

38) Which of the following would most likely provide on-the-go product information, instant access to price comparisons and customer reviews, and instant digital coupons? A) indirect marketing B) television marketing C) mobile marketing D) inbound telephone marketing E) direct-mail marketing

C) mobile marketing

46) Compared to standardized global marketing, adapted global marketing ________. A) uses the same marketing mix elements in all target markets B) lowers marketing costs by using home country sales teams C) modifies marketing strategies to meet local needs D) maintains uniformity across all markets E) results in greater brand power

C) modifies marketing strategies to meet local needs

Cream Bay has come out with a new range of ice creams. To promote the new products, Cream Bay has set up shopping mall kiosks to offer free ice cream samples to potential customers. Which promotion tool is Cream Bay most likely using? A) rebates B) price packs C) point-of-purchase promotions D) coupons E) advertising specialties

C) point-of-purchase promotions

In which step of the selling process does a salesperson or company identify qualified potential customers? A) demonstration B) preapproach C) prospecting D) approach E) presentation

C) prospecting

Robert Solis is a salesman in a company that specializes in event management. He uses the Internet to identify potential companies with which his company can build long-term profitable relationships. Which step in the selling process does this scenario depict? A) demonstration B) preapproach C) prospecting D) approach E) presentation

C) prospecting

Which term refers to the fixed amount in a salesperson's compensation? A) bonus B) commission C) salary D) incentive E) profit-sharing plan

C) salary

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) subsistence economy

48) Which of the following has been limited in recent years by the implementation of the National Do Not Call Registry? A) calls by nonprofit groups B) business-to-business telemarketing C) unsolicited outbound telemarketing by businesses D) inbound telephone marketing E) "opt-in" calling systems

C) unsolicited outbound telemarketing by businesses

13) 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 multichannel marketing D) develop retail transaction sites E) expand their outside sales forces

C) use multichannel marketing

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 up with local restaurants to promote exclusive sales of ColaBlue soft drinks C. lowering prices of ColaBlue's products in the short term Correct 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

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

Jeff Barkins is a conscientious marketing manager. Sometimes, Jeff and his staff are unclear what decisions to make when faced with moral dilemmas. Jeff and other managers could create broad guidelines that everyone in the organization must follow in the form of a ________. A. business value statement B. company mission statement C. company vision statement D. corporate marketing ethics policy E. financial statement

D

Maytag's front-loading Neptune washer comes in attractive designs and also guarantees quick cleaning and high energy efficiency. The Neptune washer is most likely an example of a ________ product. A. deficient B. pleasing C. salutary D. desirable E. disposable

D

Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion mix has Mercury Electric used in this scenario? A. public relations B. crowdsourcing C. advertising D. sales promotion E. personal selling

D

Tilt Entertainment, a gaming design firm, has developed a new game called World Below. In order to get wider distribution, Tilt participates in the Gaming Entertainment Expo, which is attended by both sellers and consumers. Tilt sends a team of representatives for game presentation and negotiation and a team of professional gamers to showcase World Below at the Expo. The company also sends a team to sell its other games to consumers at the Expo. Which promotion mix tool has Tilt used in this scenario? A. crowdsourcing B. public relations C. advertising D. personal selling E. crowdcasting

D

Which of the following is an example of a firm utilizing public relations as a promotion tool? A. a firm using its personal sales force at an expo to sell its products B. a firm sending its catalog directly to customers through e-mail C. a firm informing customers of special discounts on its Web site D. a firm providing interesting information about a product to the news media E. a firm using a celebrity to endorse a product in a television commercial

D

Which of the following is the first step in developing an advertising program? A. setting the advertising budget B. developing an advertising strategy C. developing a brand message D. setting advertising objectives E. evaluating advertising campaigns

D

24) Which of the following is true about joint venturing? A) Management contracting is highly risky for the domestic firm. B) Contract manufacturing gives significant control to the domestic firm. C) Licensing is a highly complex method for entering global markets. D) A host country partner is necessary for selling or marketing products. E) Companies are required to invest in the construction of foreign-based facilities.

D) A host country partner is necessary for selling or marketing products.

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) Cartlon 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) Cartlon 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.

2) Which of the following statements is most likely true about direct marketing? A) Direct marketing is used to sell goods to an undifferentiated market segment. B) Direct marketing is an inconvenient and lengthy process for most buyers. C) Direct marketing models remain unaffected by the rapid growth of technologies. D) Direct marketing provides opportunities for building customer engagement. E) Direct marketing is rarely used by companies as a supplementary channel.

D) Direct marketing provides opportunities for building customer engagement

48) Which of the following is a disadvantage of straight product extension? A) It involves additional product development costs. B) It involves changing the product to meet local requirements. C) It requires planning a new promotional strategy to promote the product. D) It can be costly in the long run if products fail to satisfy consumers. E) It requires making changes in the manufacturing process.

D) It can be costly in the long run if products fail to satisfy consumers.

20) Which of the following is true of exporting? A) It is the most complex way to enter a foreign market. B) It involves the association of companies with host country partners. C) It typically requires products to be extensively modified for the foreign market. D) It involves the least change in a company's product lines. E) It involves a huge investment if done through independent international distributors.

D) It involves the least change in a company's product lines.

23) Which of the following is most likely true about e-mail marketing? A) It cannot be personalized to meet 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) It is used by marketers to send highly targeted messages.

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) It toughened the international protection of intellectual property.

35) Which of the following is an advantage of management contracting? A) It involves the least change in a company's product lines. B) It allows a contracting firm to set up its own operations at the beginning of the contract. C) It is the simplest way to enter a foreign market. D) It yields income from the beginning of the contract. E) It gives a contracting firm an option to buy shares in the managed company immediately.

D) It yields income from the beginning of the contract.

50) ________ consists of creating something new to meet the needs of consumers in a given country. A) Product adaptation B) Straight product extension C) Undifferentiated marketing D) Product invention E) Standardized manufacturing

D) Product invention

29) Which of the following is a disadvantage of licensing? A) The licensing company gains entry into a foreign market at a high risk. B) It takes a lot of time for the licensee to gain production expertise and name. C) Licensing is a complex way for a manufacturer to enter international marketing. D) The licensor potentially creates a competitor in the form of the licensee. E) The licensee is restricted from gaining knowledge about the licensor's intellectual property.

D) The licensor potentially creates a competitor in the form of the licensee.

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 resources but poor in other ways. E) These economies consume most of their output and barter the rest.

D) These economies are rich in one or more resources but poor in other ways.