Marketing Final
85) Chris Stemen, the owner of an independent gift store, is developing an advertising budget. Chris has totaled his company's revenues and deducted operating expenses and capital outlays. He intends to use a percentage of the remaining funds for advertising. Which budget setting method is Chris using?
A) affordable method B) integrated method C) percentage-of-sales method D) competitive-parity method E) objective-and-task method Answer: A Diff: 2 Type: MC Page Ref: 479 Skill: Application Objective: 13-3
2) Price is the only element in the marketing mix that produces ________. A) revenue B) variable costs C) expenses D) fixed costs E) stability
Answer: A Diff: 1 Type: MC Page Ref: 354 Skill: Concept Objective: 10-1
22) Causal research is used to ________. A) test hypotheses about cause-and-effect relationships B) gather preliminary information that will help define problems C) find information at the outset of the research process in an unstructured way D) describe marketing problems or situations E) quantify observations that produce insights unobtainable through other forms of research
Answer: A Diff: 1 Type: MC Page Ref: 163 Skill: Concept Objective: 5-3
18) The art and science of choosing target markets and building profitable relationships with them is called ________. A) marketing management B) positioning C) segmentation D) selling E) societal marketing
Answer: A Diff: 1 Type: MC Page Ref: 10 Skill: Concept Objective: 1-3
1) Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers? A) the marketing environment B) strategic planning C) target markets D) the marketing mix E) strategic mix
Answer: A Diff: 1 Type: MC Page Ref: 119 Skill: Concept Objective: 4-1
4) The collection of larger societal forces affecting a company is referred to as ________. A) the macroenvironment B) the microenvironment C) the marketing environment D) the marketing mix E) the global environment
Answer: A Diff: 1 Type: MC Page Ref: 120 Skill: Concept Objective: 4-1
12) Banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods and services are referred to as ________. A) financial intermediaries B) physical distribution firms C) marketing service agencies D) resellers E) wholesalers
Answer: A Diff: 1 Type: MC Page Ref: 121 Skill: Concept
1) Good marketing programs begin with ________. A) good customer information B) an abundance of information on international market activities C) lots of information D) company insights E) descriptive research
Answer: A Diff: 1 Type: MC Page Ref: 157 Skill: Concept Objective: 5-1
32) Which method could a marketing researcher use to obtain information that people are unwilling or unable to provide? A) observational research B) focus groups C) personal interviews D) Internet surveys E) questionnaires
Answer: A Diff: 1 Type: MC Page Ref: 166 Skill: Concept Objective: 5-3
42) Which contact method for marketing research is flexible, allows for explanation of difficult questions, and lends itself to showing products and advertisements? A) personal interviewing B) online interviewing C) phone interviewing D) ethnographic research E) observational research
Answer: A Diff: 1 Type: MC Page Ref: 168-169 Skill: Concept Objective: 5-3
46) Frequent flyer programs offered by airlines are an example of a ________. A) frequency marketing program B) basic customer relationship C) club marketing program D) consumer-generated marketing program E) structural benefit provided for top customers
Answer: A Diff: 1 Type: MC Page Ref: 18 Skill: Concept Objective: 1-4
78) Generation Xers, who were born between 1965 and 1976, share the childhood experiences of higher parental divorce rates, recession, and corporate downsizing. They tend to care about the environment and value experience over acquisition. Generation Xers make up a ________. A) subculture B) social class C) social network D) life-cycle stage E) lifestyle
Answer: A Diff: 1 Type: MC Page Ref: 199 Skill: Application Objective: 6-1
16) ________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviours. A) Social classes B) Cultures C) Reference groups D) Attitudes E) Lifestyles
Answer: A Diff: 1 Type: MC Page Ref: 201 Skill: Concept Objective: 6-1
21) ________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. A) Opinion leaders B) Habitual buyers C) Social networkers D) Stealth marketers E) Buzz marketers
Answer: A Diff: 1 Type: MC Page Ref: 202 Skill: Concept Objective: 6-1
57) The buying process starts with ________, in which the buyer recognizes a problem. A) need recognition B) information search C) evaluation of alternatives D) purchase decision E) separation of needs and wants
Answer: A Diff: 1 Type: MC Page Ref: 213 Skill: Concept Objective: 6-2
60) Marketers describe the way the consumer processes information to arrive at brand choices as ________. A) alternative evaluation B) information search C) purchase decision D) situational factors E) post-purchase dissonance
Answer: A Diff: 1 Type: MC Page Ref: 214 Skill: Concept Objective: 6-2
63) The relationship between the consumer's expectations and the product's ________ determines whether the buyer is satisfied or dissatisfied with a purchase. A) perceived performance B) brand personality C) recognition D) consumer market E) service quality
Answer: A Diff: 1 Type: MC Page Ref: 215 Skill: Concept Objective: 6-2
95) Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. When Bob Worthington went to reuse some of his coops, he noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Worthington was at which stage of the business buying process when he decided to replace his old coops? A) problem recognition B) general need description C) product specification D) product value analysis E) performance review
Answer: A Diff: 1 Type: MC Page Ref: 224 Skill: Application Objective: 6-5
51) The final step in the marketing process is ________. A) capturing value from customers B) creating customer loyalty C) creating customer lifetime value D) understanding the marketplace E) designing a customer-driven marketing strategy
Answer: A Diff: 1 Type: MC Page Ref: 23 Skill: Concept Objective: 1-4
1) Which of the following best describes market segmentation? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's brain that the brand or company should occupy
Answer: A Diff: 1 Type: MC Page Ref: 239 Skill: Concept Objective: 7-1
9) Your firm's research reveals that consumers have different tastes in different cities. As a result, management has decided to localize its products and services to meet local market demands. This is an example of ________ segmentation. A) geographic B) benefit C) end-use D) customer E) image
Answer: A Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-2
19) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. A) user status B) usage rate C) benefit D) behaviour E) loyalty status
Answer: A Diff: 1 Type: MC Page Ref: 247 Skill: Concept Objective: 7-2
68) A company or store gains a(n) ________ by differentiating its products and delivering more value. A) competitive advantage B) positioning advantage C) cost advantage D) efficiency advantage E) synergy
Answer: A Diff: 1 Type: MC Page Ref: 262 Skill: Concept Objective: 7-4
3) Product is a key element in a company's ________, which may, at one extreme, consist of pure tangible goods or, at the other extreme, pure services. A) market offering B) brand equity C) brand extension D) co-branding E) core customer value
Answer: A Diff: 1 Type: MC Page Ref: 278 Skill: Concept Objective: 8-1
10) ________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons about these products. A) Shopping products B) Convenience products C) Unsought products D) Industrial products E) Line extensions
Answer: A Diff: 1 Type: MC Page Ref: 280 Skill: Concept Objective: 8-1
19) New product development starts with ________. A) idea generation B) idea screening C) concept development D) concept testing E) test marketing
Answer: A Diff: 1 Type: MC Page Ref: 286 Skill: Concept Objective: 8-2
85) A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. A) product line B) line extension C) private brand D) convenience product E) product bandwidth
Answer: A Diff: 1 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
90) A ________ consists of all the product lines and items that a particular seller offers for sale. A) product mix B) brand line C) consumer mix D) packaging mix E) line extension
Answer: A Diff: 1 Type: MC Page Ref: 301 Skill: Concept Objective: 8-4
35) ________ describes how responsive demand will be to a change in price. A) Price elasticity B) Break-even pricing C) The break-even chart D) Target costing E) Supply
Answer: A Diff: 1 Type: MC Page Ref: 366 Skill: Concept Objective: 10-2
40) When companies set prices, the government and social concerns are two ________ affecting pricing decisions. A) external factors B) internal factors C) economic conditions D) demand curves E) temporary influences
Answer: A Diff: 1 Type: MC Page Ref: 367 Skill: Concept Objective: 10-2
57) By definition, this type of pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. A) segmented pricing B) variable pricing C) flexible pricing D) cost-plus pricing E) reference pricing
Answer: A Diff: 1 Type: MC Page Ref: 372 Skill: Concept Objective: 10-5
15) More companies are adopting the concept of ________, which carefully coordinates the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands. A) integrated marketing communications B) integrated personal selling C) integrated competitive methods D) nonpersonal communication channels E) buzz marketing
Answer: A Diff: 1 Type: MC Page Ref: 473 Skill: Concept Objective: 13-2
27) Which promotional mix strategy directs marketing efforts toward market channel members? A) push B) blitz C) pull D) buzz E) pulse
Answer: A Diff: 1 Type: MC Page Ref: 476 Skill: Concept Objective: 13-2
30) Advertising ________ define the task that advertising must do with a specific target audience during a specific period of time. A) objectives B) budgets C) strategies D) campaigns E) evaluations
Answer: A Diff: 1 Type: MC Page Ref: 478 Skill: Concept Objective: 13-3
1) Which of the following promotion tools involves personal presentation by the firm's sales force for the purpose of making sales and building customer relationships? A) personal selling B) advertising C) E-commerce D) publicity E) public relations
Answer: A Diff: 1 Type: MC Page Ref: 509 Skill: Concept Objective: 14-1
9) Of the three typical types of sales force structures, which one assigns an exclusive geographical area to each salesperson and requires each salesperson to represent the company's full line of products to customers within that area? A) territorial B) product C) customer D) complex E) team
Answer: A Diff: 1 Type: MC Page Ref: 512 Skill: Concept Objective: 14-2
38) Three common tools sales managers use to boost sales force morale include the organizational climate, sales quotas, and positive ________. A) positive incentives B) thinking C) meetings D) vocabularies and mannerisms E) teamwork
Answer: A Diff: 1 Type: MC Page Ref: 520 Skill: Concept Objective: 14-2
67) Rather than creating only short-term sales or temporary brand switching, ________ should help to reinforce the product's position and build long-term customer relationships. A) sales promotions B) promotion clutter C) samples D) trade promotions E) publicity
Answer: A Diff: 1 Type: MC Page Ref: 530 Skill: Concept Objective: 14-4
41) A negative side to email marketing is ________. A) spam B) its targeting capability C) it is limited to PCs D) decreasing effectiveness at capturing customers E) lack of privacy
Answer: A Diff: 1 Type: MC Page Ref: 556 Skill: Concept Objective: 15-3
60) What does the term "viral marketing" mean? A) It is the Internet version of word-of-mouth marketing. B) It refers to problems that occur with viruses online. C) It is another term for invasions of online privacy. D) It is another term for online security. E) It is a system that allows a supplier to access a customer's inventory levels online.
Answer: A Diff: 1 Type: MC Page Ref: 557 Skill: Concept Objective: 15-3
2) ________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Sustainable marketing B) Innovation C) The marketing concept D) Global marketing E) The strategic planning concept
Answer: A Diff: 1 Type: MC Page Ref: 82 Skill: Concept Objective: 3-1
14) ________ is the set of actual and potential buyers of a product. A) A market B) An audience C) A group D) A segment E) An exchange
Answer: A Diff: 1 Type: MC Page Ref: 9 Skill: Concept Objective: 1-2
22) An effective value proposition answers the question ________. A) "Why should I buy your brand rather than a competitor's?" B) "How does your brand benefit me and society?" C) "What are the costs and benefits of your brand?" D) "What kind of experience will I have with products and services associated with this brand?" E) "What are the benefits of being a loyal consumer of your brand?"
Answer: A Diff: 2 Type: MC Page Ref: 11 Skill: Concept Objective: 1-3
25) Which of the following marketing management concepts is most closely aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer high quality, performance, and innovative features? A) product B) production C) customer D) marketing E) promotion
Answer: A Diff: 2 Type: MC Page Ref: 11 Skill: Concept Objective: 1-3
32) Which of the following reflects the marketing concept philosophy? A) "We don't have a marketing department, we have a customer department." B) "We're in the business of making and selling superior products." C) "We build them so you can buy them." D) "When it's profits versus customers' needs, profits will always win out." E) "You won't find a better deal anywhere."
Answer: A Diff: 2 Type: MC Page Ref: 12 Skill: Concept Objective: 1-3
20) Members of which type of market buy goods and services for further processing or for use in the production process? A) business B) reseller C) wholesale D) consumer E) retail
Answer: A Diff: 2 Type: MC Page Ref: 123 Skill: Concept Objective: 4-1
21) Your marketing department is currently researching the size, density, location, age, and occupations of your target market. Which environment is being researched? A) demographic B) psychographic C) economic D) geographic E) cultural
Answer: A Diff: 2 Type: MC Page Ref: 124 Skill: Concept Objective: 4-2
33) A ________ is a name, term, sign, symbol or design that identifies the maker or seller of a product or service. A) brand B) line extension C) touchpoint D) label E) package
Answer: A Diff: 2 Type: MC Page Ref: 322 Skill: Concept Objective: 9-1
23) According to the authors, the single most important demographic trend facing marketers is the ________. A) changing age structure of the population B) mobility of the population C) slowing birth rate D) increasing growth in professional jobs E) changing structure of the family
Answer: A Diff: 2 Type: MC Page Ref: 124 Skill: Concept Objective: 4-2
33) Which of the following characteristics describes Millennials (Generation Y)? A) They are the most financially strapped generation. B) They are the children of the Gen Xers. C) They have short life expectancies. D) They are the least computer savvy generation. E) They find social media boring.
Answer: A Diff: 2 Type: MC Page Ref: 126 Skill: Concept Objective: 4-2
34) When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing. A) customer-driven B) customer-driving C) societal D) production E) product
Answer: A Diff: 2 Type: MC Page Ref: 13 Skill: Concept Objective: 1-3
39) The authors of the text would argue that ________ is the most fundamental concept of modern marketing. A) customer relationship management B) social media C) broadcast advertising D) properly trained sales people E) low prices
Answer: A Diff: 2 Type: MC Page Ref: 14 Skill: Concept Objective: 1-4
69) A society's core beliefs and values have a high degree of ________. A) persistence B) simplicity C) similarity D) ethnocentrism E) conformity
Answer: A Diff: 2 Type: MC Page Ref: 141 Skill: Concept Objective: 4-4
81) Sally purchased Brand X lotion. In comparing her perception of how the lotion performed to her expectations for Brand X lotion, Sally was measuring her level of ________. A) customer-perceived value B) customer satisfaction C) exchange D) demand E) customer lifetime value
Answer: A Diff: 2 Type: MC Page Ref: 15 Skill: Application Objective: 1-4
41) Which of the following is determined by a customer's personal evaluation of the benefits and costs of a market offering relative to those of competing offers? A) customer-perceived value B) customer satisfaction C) customer-perceived performance D) customer relationship management E) market segmentation
Answer: A Diff: 2 Type: MC Page Ref: 15 Skill: Concept Objective: 1-4
36) Fredia Dyck has just discovered the major advantage of survey research. She reports to her supervisor that the advantage is its ________. A) flexibility B) interactive design C) ease to complete D) understandability E) simplicity
Answer: A Diff: 2 Type: MC Page Ref: 168 Skill: Concept Objective: 5-3
59) A successful CRM program can be expected to help a company achieve which one of the following? A) providing higher levels of customer service B) developing a strategy for investigating customer relations C) creating general offers for a wide customer segment D) understanding the competition better E) understanding how to build advertisements
Answer: A Diff: 2 Type: MC Page Ref: 178 Skill: Concept Objective: 5-4
94) Maria Hooper is conducting marketing research for a company that is investigating the possibility of entering multiple international markets. As Maria plans her research in 30 different countries, upon which of the following is she least likely to rely? A) free secondary data B) translators C) primary data collected for the purpose of her research D) the same process as domestic researchers E) personal interviews
Answer: A Diff: 2 Type: MC Page Ref: 182-183 Skill: Application
2) The consumer market is made up of which of the following? A) individuals and households who buy goods or services for personal consumption B) suppliers who provide offerings to retailers C) businesses that purchase goods and services D) retailers who resell offerings to customers E) marketers who focus on satisfying consumer needs
Answer: A Diff: 2 Type: MC Page Ref: 197 Skill: Concept Objective: 6-1
5) Which of the following is an example of a major force affecting consumer behaviour? A) cultural B) geographical C) philosophical D) channels E) physiological
Answer: A Diff: 2 Type: MC Page Ref: 199 Skill: Concept Objective: 6-1
7) ________ is(are) the most basic cause(s) of a person's wants and behaviour. A) Culture B) Brand personality C) Cognitive dissonance D) Social factors E) Selective perception
Answer: A Diff: 2 Type: MC Page Ref: 199 Skill: Concept Objective: 6-1
87) Elisandra, a marketing manager at a regional chain restaurant, has decided to create a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________. A) consumer-generated marketing B) partner relationship management C) customer lifetime value D) community development around a brand E) share of customer
Answer: A Diff: 2 Type: MC Page Ref: 20 Skill: Application Objective: 1-4
22) Opinion leaders are sometimes referred to as ________. A) the influentials B) the upper class C) the middle class D) buzz marketers E) networkers
Answer: A Diff: 2 Type: MC Page Ref: 202 Skill: Concept Objective: 6-1
28) ________ is the most important consumer buying organization in society; the roles and influences of different members have been researched extensively. A) Family B) Social class C) Membership group D) Subculture E) Reference group
Answer: A Diff: 2 Type: MC Page Ref: 204 Skill: Concept Objective: 6-1
30) A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept. A) personal characteristics B) reference groups C) perceptions D) attitudes E) psychographics
Answer: A Diff: 2 Type: MC Page Ref: 206 Skill: Concept Objective: 6-1
44) What is the most pressing in Maslow's Hierarchy of Needs at any given time? A) physiological needs B) social needs C) esteem needs D) self-actualization needs E) safety needs
Answer: A Diff: 2 Type: MC Page Ref: 210 Skill: Concept Objective: 6-1
90) Cameron loves to know about and purchase the most up-to-date technological gadgets. Among his friends, he is almost always the first to own the newest electronic product. Often the products that Cameron buys become adopted by large groups of consumers, but occasionally Cameron will purchase a product that is adopted by only a small portion of the population. To which of the following adopter groups does Cameron belong? A) innovator B) early adopter C) early majority D) late majority E) laggards
Answer: A Diff: 2 Type: MC Page Ref: 216 Skill: Application Objective: 6-3
69) Which of the following is a way that business and consumer markets are the same? A) satisfaction of needs through purchase decisions B) market structure and demand C) nature of the buying unit D) types of decisions E) decision process
Answer: A Diff: 2 Type: MC Page Ref: 218 Skill: Concept Objective: 6-4
70) Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying decision process is more ________ than the consumer buying decision process is. A) formalized B) creative C) relationship-oriented D) independent E) concentrated
Answer: A Diff: 2 Type: MC Page Ref: 219 Skill: Concept Objective: 6-4
58) The ultimate aim of customer relationship management is to produce ________. A) customer delight B) customer satisfaction C) steady sales volume D) a reliable database E) sustainable business
Answer: A Diff: 2 Type: MC Page Ref: 23 Skill: Concept Objective: 1-4
11) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it? A) demographic B) lifestyle C) psychographic D) behavioural E) geographic
Answer: A Diff: 2 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2
17) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioural B) psychographic C) age and life cycle D) demographic E) geographic
Answer: A Diff: 2 Type: MC Page Ref: 245 Skill: Concept Objective: 7-2
21) By studying its less loyal buyers, a company can detect which brands are most ________ with its own. A) competitive B) used C) often overlooked D) similar E) complementary
Answer: A Diff: 2 Type: MC Page Ref: 248 Skill: Concept Objective: 7-2
30) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable
Answer: A Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2
35) Barney Hopkins has compiled a list of things that make segments more attractive. Which of the following items should be on the list? A) profitability B) powerful suppliers to control prices C) many substitute products D) competition with superior resources E) financial resources
Answer: A Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-3
49) Which of the segmenting strategies makes the most sense when a company introduces a new product? A) concentrated B) mass C) differentiated D) individual marketing E) multiple-segment
Answer: A Diff: 2 Type: MC Page Ref: 257 Skill: Concept Objective: 7-3
67) Which of the listed choices is a very important positioning task? A) identifying a set of possible competitive advantages upon which to build a position B) surveying frequent uses of the product C) selecting a specific positioning statement D) effectively selling the cheapest position to the market E) selecting the right competition
Answer: A Diff: 2 Type: MC Page Ref: 261 Skill: Concept Objective: 7-4
74) You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________. A) its value proposition B) target marketing C) capturing the consumers' attention D) value profiling E) differentiated marketing
Answer: A Diff: 2 Type: MC Page Ref: 263-264 Skill: Concept Objective: 7-4
82) What is the following an example of? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go." A) positioning statement B) service differentiation C) concentrated segmentation D) competitive advantage E) responsible target marketing
Answer: A Diff: 2 Type: MC Page Ref: 266 Skill: Concept Objective: 7-4
6) The third level of a product that product planners consider is a(n) ________ around the core benefit and actual product that offers additional consumer services and benefits. A) augmented product B) brand equity C) brand extension D) industrial product E) image
Answer: A Diff: 2 Type: MC Page Ref: 279-280 Skill: Concept Objective: 8-1
46) Under what circumstances might it be wise for a company to invest in a test market? A) when a new product requires a major investment B) when the product is not working well C) when management is sure of the marketing program D) when the product risk is very low E) when the cost of new-product development is very low
Answer: A Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-2
47) According to the authors, when does a company typically invest in test marketing? A) before the full product introduction B) at idea generation time C) before the product concept D) after meeting with a stockholder E) after a logistics discussion with suppliers
Answer: A Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-2
62) Some products that have entered the decline stage have been cycled back to the growth stage through ________. A) repositioning B) concept testing C) business analysis D) innovation management E) customer-centered product development
Answer: A Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
67) A company wants to sustain this stage as long as possible. A) growth B) decline C) maturity D) introduction E) commercialization
Answer: A Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
72) Which of the following best represents the options a company has when a product is declining? A) maintain, reposition, harvest or drop the product B) harvest or drop the product C) maintain, harvest, or drop the product D) maintain or pioneer the product E) pioneer, harvest, or maintain the product
Answer: A Diff: 2 Type: MC Page Ref: 294-295 Skill: Concept Objective: 8-3
68) The social-responsibility and environmental movements are expected to ________ in the future. A) demand more from companies B) demand less from companies C) move away from sustainable marketing D) move toward partner relationship management E) move away from using social networking
Answer: A Diff: 2 Type: MC Page Ref: 32 Skill: Concept Objective: 1-5
53) Once chosen the brand name should be ________. A) sold B) protected C) shared D) exploited E) saved
Answer: B Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
36) Branding helps sellers. The following is definitely an example of this help. A) Brand names provide legal protection for unique product features. B) Brand names provide guarantees that consumers will spend their money. C) Brand names are easy to sell. D) Brand names work for everyone. E) Brand names provide advertising.
Answer: A Diff: 2 Type: MC Page Ref: 323 Skill: Concept Objective: 9-1
45) Besides a logo, name and icon brands also have ________. A) personality, status and value. B) legal implications, and trust accounts C) profit D) public relations E) exclusive power over customers
Answer: A Diff: 2 Type: MC Page Ref: 326 Skill: Concept Objective: 9-2
47) Brands occupy a level of social regard with respect to one another. We consider a Rolls-Royce or Bentley car differently than a Chevrolet or Hyundai. This is an example of brand ________. A) status B) price C) touchpoints D) value E) equity
Answer: A Diff: 2 Type: MC Page Ref: 327 Skill: Concept Objective: 9-2
88) Sophia is the newly hired brand manager for a new company in southern Ontario. She knows that before consumers respond to a brand they must first ________. A) know about and understand the benefits. B) be given coupons C) hire a successful olympian to help carry the message D) buy full page advertisements in the National Post and Globe and Mail. E) talk to salespeople
Answer: A Diff: 2 Type: MC Page Ref: 329 Skill: Concept Objective: 9-2
59) Store brands account for ________ of Canadian grocery store and drugstore revenues. A) 25% B) 75% C) 5% D) 10% E) 60%
Answer: A Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
64) A number of top selling retail toys are products that are based on television shows and movies. These are examples of ________. A) licensing B) product extensions C) word of mouth sales D) exploitations E) top down production
Answer: A Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
92) One disadvantage of store brands is that they are ________. A) harder to establish B) well known throughout the country C) more expensive than national brands D) easy to promote E) cheaper to stock than national brands
Answer: A Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
25) ________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavours, forms, colours, ingredients, or package sizes. A) A line extension B) A product mix C) Interactive marketing D) Service variability E) Service intangibility
Answer: A Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
69) One risk of having too many line extensions is that ________. A) sales might come at the expense of other items in the line. B) the competition can use your good ideas C) customers buy more than they really need D) intermediaries increase the throughput costs E) Internet sales may decrease
Answer: A Diff: 2 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
74) Recently General Motors was on the brink of bankruptcy. One of the solutions was to deal with their problem of multibranding. What did GM do to reduce costs and increase profitability? A) They cut many modest or failing brands to focus on their stronger brands. B) They offered employee discounts to everyone. C) They lobbied along with Chrysler for huge government bailout payments. D) They sold stock to generate revenue. E) They sold more cars and trucks.
Answer: A Diff: 2 Type: MC Page Ref: 335 Skill: Concept Objective: 9-4
79) Brands must be maintained by ________.as well as by advertising. A) the overall brand experience B) managers C) sales staff D) executive E) intermediaries
Answer: A Diff: 2 Type: MC Page Ref: 336 Skill: Concept Objective: 9-3
5) ________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. A) Customer value-based pricing B) Target return pricing C) Variable costs D) Price elasticity E) Product image
Answer: A Diff: 2 Type: MC Page Ref: 355 Skill: Concept Objective: 10-1
10) Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the ________ level. A) perceived value B) value-based C) variable D) demand curve E) price-floor
Answer: A Diff: 2 Type: MC Page Ref: 356 Skill: Concept Objective: 10-1
17) Rent, electricity, and executive salaries are examples of ________ costs. A) fixed B) variable C) total D) accumulated E) marketing
Answer: A Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
80) In Lima, Peru, 20 stores specializing in selling the same quality and brand of wheat products are located on one street. An individual seller cannot charge more than the going price without the risk of losing business to the other stores. This is an example of what type of market? A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) socialist
Answer: A Diff: 2 Type: MC Page Ref: 365 Skill: Application Objective: 10-2
31) Under ________, 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) anti-trust agreements
Answer: A Diff: 2 Type: MC Page Ref: 365 Skill: Concept Objective: 10-2
44) A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) price skimming B) trial pricing C) value pricing D) market-penetration pricing E) prestige pricing
Answer: A Diff: 2 Type: MC Page Ref: 368 Skill: Concept Objective: 10-3
86) When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is using ________. A) product line pricing B) market-skimming pricing C) market-penetration pricing D) break-even pricing E) target return pricing
Answer: A Diff: 2 Type: MC Page Ref: 369 Skill: Application Objective: 10-4
46) Which of the following conditions would most likely to support market-penetration pricing? A) The market must be highly price sensitive. B) Production and distribution costs rise as sales volume increases. C) The product's quality and image must support the price. D) The low price does not affect the competition. E) A low price does not affect market growth.
Answer: A Diff: 2 Type: MC Page Ref: 369 Skill: Concept Objective: 10-3
47) A challenge for management in product line pricing is to decide on the price steps between the ________. A) various products in a line B) product mixes C) product groupings D) product lines E) various target markets
Answer: A Diff: 2 Type: MC Page Ref: 369 Skill: Concept Objective: 10-4
70) Which of the following is a reason for a company to raise its prices? A) to balance out cost increases B) to win a larger share of the market C) to use excess capacity D) to boost sales volume E) to balance out decreasing costs
Answer: A Diff: 2 Type: MC Page Ref: 376 Skill: Concept Objective: 10-6
73) The Competition Act is the federal law that was enacted to curb the formation of ________. A) unfair competition B) oligopolies C) competitive markets D) international markets E) limited partnerships
Answer: A Diff: 2 Type: MC Page Ref: 379 Skill: Concept Objective: 10-7
5) Producers use marketing intermediaries because they ________. A) create greater efficiency in making goods available to target markets B) supply inexpensive raw materials for manufacturing products C) provide technical expertise for faster production D) monitor day-to-day activities during production E) form a part of the company's direct channel
Answer: A Diff: 2 Type: MC Page Ref: 393 Skill: Concept Objective: 11-1
18) Which of the following is true of a conventional distribution channel? A) It has each channel member acting as a separate business unit trying to maximize its own profits. B) It consists of producers selling their products directly to customers without the use of intermediaries. C) It has one channel member owning the other channel members. D) It is a distribution channel where a producer is owner of all the other channel members. E) It has all members of the channel working together as a single organization.
Answer: A Diff: 2 Type: MC Page Ref: 399 Skill: Concept Objective: 11-3
27) Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have? A) administered vertical marketing system B) corporate vertical marketing system C) indirect marketing system D) wholesaler franchise system E) horizontal marketing system
Answer: A Diff: 2 Type: MC Page Ref: 400 Skill: Concept Objective: 11-3
33) For over ten years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own website for selling its books. This change in channel organization is called ________. A) disintermediation B) intensive distribution C) brokering D) franchising E) selective distribution
Answer: A Diff: 2 Type: MC Page Ref: 404-405 Skill: Concept Objective: 11-3
37) Selective distribution is a strategy in which ________. A) more than one but fewer than all willing intermediaries are used by a seller B) products are stocked in as many outlets as possible by a seller C) products are not sold through intermediaries but directly to customers from producers D) all willing intermediaries are given rights to sell a product E) common household goods are preferred over luxury products by intermediaries
Answer: A Diff: 2 Type: MC Page Ref: 408 Skill: Concept Objective: 11-4
14) Which term refers to a giant specialty store with a very deep assortment of a particular product line? A) category killer B) convenience store C) factory outlet D) department store E) independent store
Answer: A Diff: 2 Type: MC Page Ref: 436 Skill: Concept Objective: 12-1
24) ________ refer to two or more outlets that are commonly owned and controlled. A) Corporate chains B) Factory stores C) Specialty stores D) Designer shops E) Warehouse clubs
Answer: A Diff: 2 Type: MC Page Ref: 437 Skill: Concept Objective: 12-1
28) Rhonda recently entered into a contractual agreement with StellarCutz, a national chain of affordable, walk-in hair salons. Under the agreement, Rhonda uses the StellarCutz trade name and receives support from StellarCutz in terms of business methods and processes. Rhonda paid a start-up fee to StellarCutz and will pay annual licensing fees for the use of the StellarCutz brand. Which of the following best describes Rhonda's business? A) franchise B) factory outlet C) superstore D) acquisition E) joint agreement
Answer: A Diff: 2 Type: MC Page Ref: 437 Skill: Concept Objective: 12-1
43) Retailers use digital technologies to ________. A) provide a more personalized shopping experience B) keep certain consumers out of the store C) charge higher prices D) avoid customer feedback and complaints E) eliminate transportation costs
Answer: A Diff: 2 Type: MC Page Ref: 445 Skill: Concept Objective: 12-3
1) ________ is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities. A) Strategic planning B) Annual market planning C) Short-term planning D) Long-range planning E) Advertising
Answer: A Diff: 2 Type: MC Page Ref: 46 Skill: Concept Objective: 2-1
2) ________ deals with the company's current business and ________ involves adapting a firm to take advantage of opportunities in its constantly changing environment. A) Long-range planning; strategic planning B) Short-range planning; long-range planning C) Annual planning; long-range planning D) Strategic planning; short-range planning E) Environmental scanning; strategic planning
Answer: A Diff: 2 Type: MC Page Ref: 46 Skill: Concept Objective: 2-1
5) Which of the following are major categories in the promotion mix? A) advertising, sales promotion B) sales promotion, positioning C) positioning, public relations D) positioning, advertising E) advertising, indirect marketing
Answer: A Diff: 2 Type: MC Page Ref: 468 Skill: Concept Objective: 13-1
16) Advertising, sales promotion, personal selling, public relations, and direct marketing are all ________. A) communications channels that should be integrated under the concept of integrated marketing communications B) communications channels focused more on narrowcasting than broadcasting C) promotional tools used for push strategies but not pull strategies D) promotional tools used for pull strategies but not push strategies E) promotional tools adapted for use in mass marketing
Answer: A Diff: 2 Type: MC Page Ref: 473 Skill: Concept Objective: 13-2
80) An email from Amazon.ca offers free shipping on your next purchase of more than $35. This is an example of ________. A) sales promotion B) personal selling C) public relations D) an advertising objective E) a push strategy
Answer: A Diff: 2 Type: MC Page Ref: 475 Skill: Application Objective: 13-2
28) Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while business-to-business companies are more likely to emphasize a ________ promotion strategy. A) pull; push B) push; pull C) pulse; pull D) continuity; pulse E) pulse; continuity
Answer: A Diff: 2 Type: MC Page Ref: 477 Skill: Concept Objective: 13-2
29) Which of the following are important decisions during the process of developing an advertising program? A) setting advertising objectives, setting the advertising budget B) setting the advertising budget, selecting a target market C) selecting a target market, developing advertising strategy D) selecting a target market, evaluating campaigns E) evaluating advertising campaigns, starting over
Answer: A Diff: 2 Type: MC Page Ref: 477 Skill: Concept Objective: 13-3
83) When Proctor & Gamble developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by Proctor & Gamble for the Mr. Clean Magic Eraser? A) informative advertising B) persuasive advertising C) reminder advertising D) developmental advertising E) comparative advertising
Answer: A Diff: 2 Type: MC Page Ref: 478 Skill: Application Objective: 13-3
31) Advertising ________ can be classified by primary purpose—whether the aim is to inform, persuade, or remind. A) objectives B) budgets C) evaluations D) campaigns E) logos
Answer: A Diff: 2 Type: MC Page Ref: 478 Skill: Concept Objective: 13-3
33) ________ becomes more important as competition increases. The company's objective is to build selective demand. A) Persuasive advertising B) Informative advertising C) POP promotion advertising D) Patronage advertising E) Reminder-oriented advertising
Answer: A Diff: 2 Type: MC Page Ref: 478 Skill: Concept Objective: 13-3
9) A(n) ________ defines a business in terms of satisfying basic customer needs. A) market-oriented mission statement B) product-oriented mission statement C) technology-oriented mission statement D) environment-oriented mission statement E) strategic plan
Answer: A Diff: 2 Type: MC Page Ref: 48 Skill: Concept Objective: 2-1
39) Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result. A) percentage-of-sales B) affordable C) competitive-parity D) objective-and-task E) regression
Answer: A Diff: 2 Type: MC Page Ref: 480 Skill: Concept Objective: 13-3
42) Today, which of the following is often a more important element of developing an advertising strategy than the creative elements of the campaign? A) selecting the right advertising media B) using sophisticated statistical models C) setting advertising objectives D) evaluating advertising campaigns E) setting the advertising budget
Answer: A Diff: 2 Type: MC Page Ref: 481 Skill: Concept Objective: 13-3
87) An ad for a new convection oven shows a busy professional woman serving dinner to her family. The convection oven is seen in the background, and the headline reads, "The latest development in time travel." This is an example of what type of execution style? A) slice of life B) testimonial evidence C) fantasy D) scientific evidence E) mood or image
Answer: A Diff: 2 Type: MC Page Ref: 485 Skill: Application Objective: 13-3
93) You receive a report that says the 68% of your target market had been exposed to your ad campaign during a given period of time. This is an example of ________. A) reach B) frequency C) impact D) engagement E) qualitative value
Answer: A Diff: 2 Type: MC Page Ref: 487 Skill: Application Objective: 13-3
59) Which of the following are some of the major steps in selecting advertising media? A) deciding on reach, frequency, and impact, choosing among major media types B) choosing among major media types, selecting target markets C) selecting specific media vehicles, deciding on format elements D) deciding on format elements, selecting target markets E) deciding on format elements, deciding on timing
Answer: A Diff: 2 Type: MC Page Ref: 487 Skill: Concept Objective: 13-3
60) ________ is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. A) Reach B) Qualitative value C) Impact D) Premium E) Frequency
Answer: A Diff: 2 Type: MC Page Ref: 487 Skill: Concept Objective: 13-3
70) One way to measure the ________ effects of advertising is to compare past sales with past advertising expenditures. A) sales and profit B) promotion and cost C) communication D) loyalty E) interest and return
Answer: A Diff: 2 Type: MC Page Ref: 491 Skill: Concept Objective: 13-4
24) In the Boston Consulting Group approach, ________ serve(s) as a measure of company strength in the market. A) relative market share B) SBUs C) cash cows D) market growth rate E) market segmentation
Answer: A Diff: 2 Type: MC Page Ref: 50 Skill: Concept Objective: 2-2
30) The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________. A) harvesting; divesting B) promoting; selling C) downsizing; expanding D) diversifying; penetrating E) developing; growing
Answer: A Diff: 2 Type: MC Page Ref: 50-51 Skill: Concept Objective: 2-2
78) Sunny Snacks is a large consumer product company that sells its products to wholesalers and retailers. The sales force at Sunny Snacks is least likely to do which of the following? A) Work directly with final customers. B) Build relationships with wholesalers. C) Help retailers effectively sell the company's products. D) Communicate regularly with business customers. E) Represent their wholesale and retail customers.
Answer: A Diff: 2 Type: MC Page Ref: 511 Skill: Application Objective: 14-1
26) The purpose of a training program for salespeople is to teach them ________. A) customers' buying habits and motives B) customers' buying motives and economic cycle C) the economic cycle and company's main competitors D) the company's retirement benefits and organizational structure E) the company's organizational structure and benefits plan
Answer: A Diff: 2 Type: MC Page Ref: 517 Skill: Concept Objective: 14-2
30) Helping the salesforce "work smart" is the goal of ________. A) sales supervision B) sales motivation C) sales compensation D) the organizational climate E) return on sales investment
Answer: A Diff: 2 Type: MC Page Ref: 519 Skill: Concept Objective: 14-2
35) Which of the following is a part of sales force automation systems frequently used by salespeople? A) customer-contact and relationship management software B) time-and-duty analysis software C) telephones D) desktop computers E) time-motion software
Answer: A Diff: 2 Type: MC Page Ref: 519 Skill: Concept Objective: 14-2
94) An email from Amazon.ca offers free shipping on your next purchase of more than $40. This is an example of a ________. A) sales promotion B) POP promotion C) rebate D) price pack E) premium
Answer: A Diff: 2 Type: MC Page Ref: 529 Skill: Application Objective: 14-4
40) The marketing concept is best thought of as which of the following? A) a guiding philosophy for the company's marketing strategy B) a specific company tactic to build relationships with customers, vendors, and suppliers C) the overall purpose of the company D) the position the company's product holds in customers' minds E) the organization of the company's marketing department
Answer: A Diff: 2 Type: MC Page Ref: 53 Skill: Concept Objective: 2-3
66) Which of the following is an objective for trade promotions? A) to get retailers to carry new items B) to get retailers to discount products C) to gain more consumer confidence D) to get salespeople to sign up new accounts E) to get retailers to reduce competition
Answer: A Diff: 2 Type: MC Page Ref: 530 Skill: Concept Objective: 14-4
72) CanFinancial is a financial services provider who also offers car insurance. Whenever a customer has a child who is about to become eligible for a driver's license, the company sends the customer materials related to teaching teenagers how to drive safely. This is an example of using digital customer information to ________. A) engage with carefully targeted customers B) sell insurance C) advertise the company D) find new customers E) increase market share
Answer: A Diff: 2 Type: MC Page Ref: 548 Skill: Application Objective: 15-1
7) One of the advantages of direct marketing for sellers is that direct marketing ________. A) offers access to buyers outside local markets B) eliminates the need for a sales force C) provides statistical information about industry buying habits D) provides comparative information about customers and competitors E) eliminates expenses such as order processing and inventory handling
Answer: A Diff: 2 Type: MC Page Ref: 550 Skill: Concept Objective: 15-1
85) You are looking up airline schedules on the Internet. A bar at the top of the website reads, "Stay at Holiday Inn and get a 25 percent discount!" This is a(n) ________. A) display ad related to your search B) pop-under C) content sponsorship D) pop-up E) interstitial
Answer: A Diff: 2 Type: MC Page Ref: 555 Skill: Application Objective: 15-3
45) Sometimes a regular ad can go viral with the help of ________. A) targeted seeding B) loyal customers C) television exposure D) magazine exposure E) global commerce
Answer: A Diff: 2 Type: MC Page Ref: 557 Skill: Concept Objective: 15-3
73) Fiona Lamb is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Fiona wants to reach a selective market of individuals who have recently donated to international charities. Which of the following types of direct marketing is Fiona most likely to use? A) direct-mail marketing B) catalog marketing C) telephone marketing D) direct-response television marketing E) kiosk marketing
Answer: A Diff: 2 Type: MC Page Ref: 566 Skill: Application Objective: 15-4
30) As consumers become more and more comfortable with technology, many companies are using information and ordering machines called ________ in stores, airports, and other locations. A) kiosks B) terminals C) interactive televisions D) relays E) vending machines
Answer: A Diff: 2 Type: MC Page Ref: 569 Skill: Concept Objective: 15-4
62) Modern marketing departments are changing their focus to ________. A) customer management B) product management C) brand management D) functional management E) market organization management
Answer: A Diff: 2 Type: MC Page Ref: 68 Skill: Concept Objective: 2-5
6) A long-standing charge against intermediaries is that they mark up prices beyond the ________. A) value of their services B) delivery charges C) going market price D) range most Canadians can afford to pay E) resale value
Answer: A Diff: 2 Type: MC Page Ref: 83 Skill: Concept Objective: 3-2
24) The high failure rate of new products shows that companies are not able to ________. A) control demand B) advertise enough C) find manufacturers D) find outlets E) identify consumer needs
Answer: A Diff: 2 Type: MC Page Ref: 89 Skill: Concept Objective: 3-2
74) Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________. A) product concept B) production concept C) selling concept D) marketing concept E) societal marketing concept
Answer: A Diff: 3 Type: MC Page Ref: 11 Skill: Application Objective: 1-3
23) Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? A) production concept B) product concept C) selling concept D) marketing concept E) societal marketing concept
Answer: A Diff: 3 Type: MC Page Ref: 11 Skill: Concept Objective: 1-3
80) Noora DeLange is helping her company develop a marketing program for a new product line. The program involves emphasizing experience over acquisition and uses a marketing pitch that is less overt than the company's previous programs. The marketing program is most likely designed to appeal to which one of the following demographic groups? A) Gen Xers B) Nontraditional households C) "Micropolitan" populations D) Millennials E) Manufacturing workers
Answer: A Diff: 3 Type: MC Page Ref: 127 Skill: Application Objective: 4-2
23) Of the following combinations, managers would be most likely to start with ________ research and later follow with ________ research. A) exploratory; causal B) descriptive; causal C) descriptive; exploratory D) causal; descriptive E) causal; exploratory
Answer: A Diff: 3 Type: MC Page Ref: 163 Skill: Concept Objective: 5-3
87) Segmenting voters as either Liberals, Conservatives, Green Party or NDP is an example of ________. A) psychographic segmentation B) demographic segmentation C) occasion segmentation D) intermarket segmentation E) geographic segmentation
Answer: A Diff: 3 Type: MC Page Ref: 244-245 Skill: Application Objective: 7-2
105) Helene Curtis began to market shampoo for normal hair. In an attempt to increase profits and use excess market capacity, Helene Curtis then marketed shampoo for oily hair and colour-treated hair. This is an example of ________. A) line filling B) social marketing C) a shopping product D) an unsought product E) people marketing
Answer: A Diff: 3 Type: MC Page Ref: 300 Skill: Application Objective: 8-4
106) Which of the following is/are examples of product mix depth? A) hamburger and cheeseburger B) hamburger and ice cream C) Coke and hamburger D) hamburger and desert E) hamburger and french fries
Answer: A Diff: 3 Type: MC Page Ref: 301 Skill: Application Objective: 8-4
22) In 2013, pop band One Direction allowed photos and band-related images to be placed on various footwear and apparel created by the Leomil Group in exchange for a royalty. This is an example of ________. A) licensing B) ingredient branding C) brand extension D) megabranding E) a brand touchpoint
Answer: A Diff: 3 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
95) Cheerios launching Walnut Cheerios cereal is an example of ________. A) line extension B) brand extension C) cobranding D) licensing E) the product lifecycle
Answer: A Diff: 3 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
36) After determining its advertising objectives, the company's next step in developing an advertising program is to ________. A) set its advertising budget B) evaluate ad campaigns C) develop an ad strategy D) make message decisions E) make media decisions
Answer: A Diff: 3 Type: MC Page Ref: 479 Skill: Concept Objective: 13-3
2) Of the following, which is the least creative sales position? A) order taker B) order getter C) account executive D) account development rep E) outside salesperson
Answer: A Diff: 3 Type: MC Page Ref: 510 Skill: Concept Objective: 14-1
6) A company can unite its marketing and sales functions through many activities. Which is the least likely to be effective? A) assigning a telemarketer the task of visiting a customer B) arranging joint meetings to clarify all aspects of communication C) appointing a chief customer officer to oversee both departments D) having a salesperson preview ads and sales-promotion campaigns E) sending brand managers on sales calls with a salesperson
Answer: A Diff: 3 Type: MC Page Ref: 512 Skill: Concept Objective: 14-1
6) The players close to the company that impact a firm's ability to serve its customers constitute ________. A) the macroenvironment B) the microenvironment C) the marketing environment D) the marketing mix E) the global environment
Answer: B Diff: 1 Type: MC Page Ref: 120 Skill: Concept Objective: 4-1
15) A popular blogger who writes and passes along news, features, and editorial opinions about your area is best classified as which type of public? A) financial B) media C) citizen-action D) local E) regional
Answer: B Diff: 1 Type: MC Page Ref: 122 Skill: Application Objective: 4-1
17) Workers, managers, and members of the board of directors are all part of a company's ________. A) general public B) internal public C) local public D) intermediary public E) market public
Answer: B Diff: 1 Type: MC Page Ref: 123 Skill: Concept Objective: 4-1
54) The natural resources that are needed as inputs by marketers or that are affected by marketing activities are referred to as the ________. A) raw material market B) natural environment C) endangered environment D) green movement E) factors of production
Answer: B Diff: 1 Type: MC Page Ref: 135 Skill: Concept Objective: 4-3
68) A society's basic values, perceptions, preferences, and behaviours are all part of its ________ environment. A) social B) cultural C) political D) cultural-economic E) natural
Answer: B Diff: 1 Type: MC Page Ref: 141 Skill: Concept Objective: 4-4
70) A society's ________ are expressed in how people view themselves, organizations, society, nature, and the universe. A) marketing responses B) cultural values C) demographics D) public policies E) economies
Answer: B Diff: 1 Type: MC Page Ref: 141 Skill: Concept Objective: 4-4
89) Assume that you are a manager at a firm that has hired lobbyists to influence legislation affecting your firm's industry to its advantage. Your firm takes a(n) ________ approach to the marketing environment. A) reactive B) proactive C) adversarial D) passive E) team work
Answer: B Diff: 1 Type: MC Page Ref: 144 Skill: Application Objective: 4-5
4) ________ means having fresh understandings of customers and the marketplace derived from marketing information, which form the basis of customer value and relationships. A) A marketing information system B) Customer insight C) An internal database D) Secondary data E) A focus group
Answer: B Diff: 1 Type: MC Page Ref: 157 Skill: Concept Objective: 5-1
11) ________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. A) Marketing data B) Competitive Marketing intelligence C) Sales management D) Customer intelligence E) Competitive intelligence
Answer: B Diff: 1 Type: MC Page Ref: 161 Skill: Concept Objective: 5-2
18) ________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. A) The marketing information system B) Marketing research C) Exploratory research D) Observational research E) Causal research
Answer: B Diff: 1 Type: MC Page Ref: 163 Skill: Concept Objective: 5-3
46) Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population. A) group B) sample C) population D) target group E) audience
Answer: B Diff: 1 Type: MC Page Ref: 174 Skill: Concept Objective: 5-3
49) Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about ________ advertising. A) alternative evaluation B) subliminal C) perceptual D) innovative E) comparative
Answer: B Diff: 1 Type: MC Page Ref: 211 Skill: Concept Objective: 6-1
26) Wealth TV is a channel that segments its market based on the household income levels of television viewers. This firm segments on what basis? A) geographic segmentation B) demographic segmentation C) psychographic segmentation D) behavioural segmentation E) situational factors
Answer: B Diff: 1 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2
90) Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation. A) user status B) usage rate C) benefits sought D) occasions E) psychographic
Answer: B Diff: 1 Type: MC Page Ref: 248 Skill: Application Objective: 7-2
20) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type D) brand preference E) usage rate
Answer: B Diff: 1 Type: MC Page Ref: 248 Skill: Concept Objective: 7-2
93) The markets you have chosen to serve in four western provinces can be effectively reached and served. You would tell the marketing manager that these segments are ________. A) measurable B) accessible C) substantial D) actionable E) profitable
Answer: B Diff: 1 Type: MC Page Ref: 252 Skill: Application Objective: 7-3
39) The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. A) market segment B) target market C) well-defined market D) differentiated market E) undifferentiated market
Answer: B Diff: 1 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3
2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. A) Line extensions B) Services C) Brands D) Consumer products E) Supplements
Answer: B Diff: 1 Type: MC Page Ref: 278 Skill: Concept Objective: 8-1
17) Product improvements and product modifications and new brands can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products
Answer: B Diff: 1 Type: MC Page Ref: 283 Skill: Concept Objective: 8-2
65) In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness? A) product development B) introduction C) growth D) maturity E) adoption
Answer: B Diff: 1 Type: MC Page Ref: 291-292 Skill: Concept Objective: 8-3
16) An increasing number of retailers and wholesalers have created their own ________, also called store brands. A) unsought products B) private brands C) specialty products D) service variability E) shopping products
Answer: B Diff: 1 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
23) Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the return it is seeking. A) competition-based pricing B) target return pricing C) fixed cost D) value-based pricing E) customer-based pricing
Answer: B Diff: 1 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
45) ________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share. A) Market-skimming B) Market-penetration C) Below-market D) Value-based E) Leader
Answer: B Diff: 1 Type: MC Page Ref: 368 Skill: Concept Objective: 10-3
53) With product bundle pricing, sellers can combine several products and offer the bundle ________. A) as a working unit B) at a reduced price C) as a complete self-service package D) as a reward to loyal customers E) as segmented pricing
Answer: B Diff: 1 Type: MC Page Ref: 371 Skill: Concept Objective: 10-4
55) Which of the following is not a price adjustment strategy? A) segmented pricing B) customer value-based pricing C) promotional pricing D) discount and allowance pricing E) dynamic pricing
Answer: B Diff: 1 Type: MC Page Ref: 372 Skill: Concept Objective: 10-5
62) ________ prices are the prices that buyers carry in their mind and refers to when looking at a given product. A) Psychological B) Reference C) Promotional D) Geographical E) Dynamic
Answer: B Diff: 1 Type: MC Page Ref: 373 Skill: Concept Objective: 10-5
6) Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be? A) objectives and goals B) mission statement C) business portfolio D) marketing and functional strategies E) operational strategies
Answer: B Diff: 1 Type: MC Page Ref: 46 Skill: Concept Objective: 2-1
2) Which of the following is an accurate description of modern marketing today? A) Marketing is the creation of products for customers. B) Marketing is managing profitable customer relationships. C) Selling and advertising are synonymous with marketing. D) Marketing involves satisfying producers' needs first. E) Marketing is used by for-profit organizations only.
Answer: B Diff: 1 Type: MC Page Ref: 5 Skill: Concept Objective: 1-1
8) When a firm sets out to analyze, plan, implement, and control sales force activities, it is undertaking ________. A) marketing design B) sales force management C) team selling efforts D) co-op selling and advertising E) promotional objectives
Answer: B Diff: 1 Type: MC Page Ref: 512 Skill: Concept Objective: 14-2
34) Mountain Home Farms is now using the product/market expansion grid to develop strategies. The owners of the company have most likely found the grid to be quite useful for identifying ________. A) target markets B) growth opportunities C) key customers D) new products E) suppliers
Answer: B Diff: 1 Type: MC Page Ref: 52 Skill: Concept Objective: 2-2
47) The prospecting step in the selling process includes identifying and ________ the prospects. A) calling on B) qualifying C) preselling D) making an appointment with E) approaching
Answer: B Diff: 1 Type: MC Page Ref: 524 Skill: Concept Objective: 14-3
4) Direct marketing is continuing to become more ________-oriented. A) television B) web C) mail D) telephone E) personal selling
Answer: B Diff: 1 Type: MC Page Ref: 549 Skill: Concept Objective: 15-1
52) What is the main purpose of a branded community website? A) to sell the company's products directly B) to engage consumers C) to show a catalog and give shopping tips D) to give out coupons and tell about sales events or contests E) to point out and explain competitors' weaknesses
Answer: B Diff: 1 Type: MC Page Ref: 554 Skill: Concept Objective: 15-3
42) Which of the following is "the king" of digital marketing? A) social media B) email C) online advertising D) blogs E) mobile marketing
Answer: B Diff: 1 Type: MC Page Ref: 556 Skill: Concept Objective: 15-3
16) Catalogs, brochures, samples, and DVDs are all examples of which type of marketing? A) direct-response marketing B) direct-mail marketing C) digital direct marketing D) kiosk marketing E) online marketing
Answer: B Diff: 1 Type: MC Page Ref: 566 Skill: Concept Objective: 15-4
25) A 30-minute television advertising program marketing a single product is called a(n) ________. A) telemarketing advertisement B) infomercial C) home shopping channel D) integrated marketing advertisement E) direct-response commercial
Answer: B Diff: 1 Type: MC Page Ref: 569 Skill: Concept Objective: 15-4
7) ________ are human needs as shaped by individual personality and culture. A) Deprivations B) Wants C) Demands D) Values E) Exchanges
Answer: B Diff: 1 Type: MC Page Ref: 7 Skill: Concept Objective: 1-2
8) When backed by buying power, wants become ________. A) social needs B) demands C) physical needs D) self-esteem needs E) exchanges
Answer: B Diff: 1 Type: MC Page Ref: 7 Skill: Concept Objective: 1-2
14) ________ persuades people to buy goods they had no thought of buying. A) Sustainable marketing B) High-pressure selling C) Deceptive placement D) Redlining E) Reverse redlining
Answer: B Diff: 1 Type: MC Page Ref: 87 Skill: Concept Objective: 3-2
20) Critics of the North American economic marketing system have charged that marketers have created a culture in which people are judged by what they ________. A) are B) own C) do D) know E) avoid
Answer: B Diff: 1 Type: MC Page Ref: 88 Skill: Concept Objective: 3-2
12) ________ is the act of obtaining a desired object from someone by offering something in return. A) A value proposition B) Exchange C) Bribery D) Value E) Donation
Answer: B Diff: 1 Type: MC Page Ref: 9 Skill: Concept Objective: 1-2
15) Consumer research, product development, communication, distribution, pricing, and service are all most accurately described as core ________ activities. A) exchange B) marketing C) management D) production E) customer relationship management
Answer: B Diff: 1 Type: MC Page Ref: 9 Skill: Concept Objective: 1-2
93) A company that produces and heavily markets cigarettes, with many promotions aimed at young (although legal age) nonsmokers, most likely follows which of the following philosophies? A) companies should have a social conscience B) companies can do in good conscience whatever the market and legal systems allow C) sustainable marketing D) consumer-oriented marketing E) consumerism
Answer: B Diff: 2 Type: MC Page Ref: 104 Skill: Application Objective: 3-5
73) It is most accurate to say that within a company, ethics and social responsibility require a ________. A) future-looking approach B) total corporate commitment C) separate budget D) time commitment that most firms do not have E) high-level ethical officer
Answer: B Diff: 2 Type: MC Page Ref: 104—108 Skill: Concept Objective: 3-5
3) You are directed to study the actors close to the company that affect its ability to serve its customers—departments within the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying? A) the macroenvironment B) the microenvironment C) the marketing environment D) the green movement E) the global environment
Answer: B Diff: 2 Type: MC Page Ref: 120 Skill: Concept Objective: 4-1
10) Which type of organization helps companies to stock and move goods from their points of origin to their destination? A) financial intermediary B) physical distribution firm C) marketing service firm D) reseller E) supplier
Answer: B Diff: 2 Type: MC Page Ref: 121 Skill: Concept Objective: 4-1
24) This demographic segment of the Canadian population includes about 10 million people born between the 2nd World War and the mid 1960s. A) Seniors B) Baby boomers C) Generation X D) Generation Y E) Generation Z
Answer: B Diff: 2 Type: MC Page Ref: 124 Skill: Concept Objective: 4-2
25) This group is the wealthiest generation in Canadian history. A) Generation X B) Baby boomers C) Millennials D) Seniors E) Tweens
Answer: B Diff: 2 Type: MC Page Ref: 124 Skill: Concept Objective: 4-2
77) Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing. A) shared value B) customer-driven C) societal D) donor E) product
Answer: B Diff: 2 Type: MC Page Ref: 13 Skill: Application Objective: 1-3
84) With an expected increase in ethnic diversity, marketers are likely to place a greater emphasis on ________. A) geographic segmentation B) differing advertising messages C) mass marketing D) "us and them" paradigms E) tiered markets
Answer: B Diff: 2 Type: MC Page Ref: 132 Skill: Application Objective: 4-2
47) Because of an expected increase in ethnic populations, marketers are likely to place a greater emphasis on ________. A) geographic segmentation B) targeted advertising messages C) mass marketing D) mainstream advertising E) cause-related marketing
Answer: B Diff: 2 Type: MC Page Ref: 132 Skill: Concept Objective: 4-2
64) The recent rash of business scandals and increased concerns about the environment have created fresh interest in the issues of ________ and ________. A) ethics; promotion responsibility B) ethics; social responsibility C) finances; employee discrimination D) management ethics; cultural bias E) promotion; pricing
Answer: B Diff: 2 Type: MC Page Ref: 139 Skill: Concept Objective: 4-4
42) It is most accurate to say that a customer will buy from the company that offers the highest ________. A) value for the dollar B) customer-perceived value C) level of customer satisfaction D) company image E) concern for society's interests
Answer: B Diff: 2 Type: MC Page Ref: 15 Skill: Concept Objective: 1-4
24) The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses. A) descriptive B) exploratory C) causal D) corrective E) descriptive and exploratory
Answer: B Diff: 2 Type: MC Page Ref: 163 Skill: Concept Objective: 5-3
27) Information collected from online databases on the Internet is an example of ________ data. A) primary B) secondary C) observational D) experimental E) ethnographic
Answer: B Diff: 2 Type: MC Page Ref: 165 Skill: Concept Objective: 5-3
31) For secondary data to be useful to marketers, it must be relevant, current, unbiased, and ________. A) complete B) accurate C) inexpensive D) collected before secondary data E) experimental
Answer: B Diff: 2 Type: MC Page Ref: 166 Skill: Concept Objective: 5-3
92) Juanita Petino operates a dress shop in a suburban mall. Her research budget is very small, so she uses low-cost or no-cost methods to gather research data. One method that works very well for her is changing the themes in her local newspaper and radio advertising and watching the result. Juanita is using ________ to gather data for marketing decisions. A) informal surveys B) observation C) guess work D) logic-directed research E) secondary sources
Answer: B Diff: 2 Type: MC Page Ref: 166,182 Skill: Application Objective: 5-5
33) Ethnographic research ________. A) comes from traditional focus groups B) is gathered in consumers in their natural habitat (where people live and work) C) provides secondary data D) is most popular in the service sector E) provides data to marketers when observation is impossible
Answer: B Diff: 2 Type: MC Page Ref: 167 Skill: Concept Objective: 5-3
38) Experimental research is best suited for gathering ________ information. A) exploratory B) causal C) attitudinal D) interactive E) descriptive
Answer: B Diff: 2 Type: MC Page Ref: 168 Skill: Concept Objective: 5-3
43) Focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is small, a researcher would be most concerned about which of the following? A) finding a representative sample B) generalizing from the results C) administering the questions D) orchestrating cooperation among participants E) finding enough secondary data to support the findings
Answer: B Diff: 2 Type: MC Page Ref: 169 Skill: Concept Objective: 5-3
44) Which of the following is a disadvantage of online focus groups? A) Participants must be in a central location. B) The Internet format can restrict respondents' expressiveness. C) Results take longer to tabulate and analyze. D) The cost of online focus groups is greater than that of most other qualitative research methods. E) The format of focus groups can be varied.
Answer: B Diff: 2 Type: MC Page Ref: 171-172 Skill: Concept Objective: 5-3
4) Most companies research consumer buying decisions in great detail to understand ________. A) consumer needs B) what, where, how, when, why consumers buy, as well as how much they typically pay C) consumer wants D) consumer characteristics E) consumer attitudes
Answer: B Diff: 2 Type: MC Page Ref: 198 Skill: Concept Objective: 6-1
8) It is most accurate to say that marketers are always trying to spot ________ in order to discover new products that might be wanted. A) lifestyles B) cultural shifts C) groups D) dissonance E) attitudes
Answer: B Diff: 2 Type: MC Page Ref: 199 Skill: Concept Objective: 6-1
19) Family is one of the ________ factors that influence consumer behaviour. A) cultural B) social C) personal D) psychological E) business
Answer: B Diff: 2 Type: MC Page Ref: 202 Skill: Concept Objective: 6-1
20) ________ are groups to which an individual wishes to belong, as when a teenage hockey player hopes to play someday for the Canadian Olympic Hockey team. A) Membership groups B) Aspirational groups C) Leading adopter groups D) Leisure groups E) Social class groups
Answer: B Diff: 2 Type: MC Page Ref: 202 Skill: Concept Objective: 6-1
87) Blake is in the process of buying a new car. He is highly involved in the purchase and perceives significant differences among his three favourite models. Blake's next step is most likely to be ________. A) postpurchase behaviour B) evaluation of alternatives C) opinion leadership D) cognitive dissonance E) purchase decision
Answer: B Diff: 2 Type: MC Page Ref: 214 Skill: Application Objective: 6-2
64) Many major purchases result in ________, or discomfort caused by postpurchase conflict. A) need recognition B) cognitive dissonance C) purchase decisions D) legitimization E) dissatisfaction
Answer: B Diff: 2 Type: MC Page Ref: 215 Skill: Concept Objective: 6-2
65) Consumers learn about new products for the first time and make the decision to buy them during the ________. A) new product recognition B) adoption process C) evaluation process D) information search E) quality assessment
Answer: B Diff: 2 Type: MC Page Ref: 215 Skill: Concept Objective: 6-3
67) Innovators are ________. A) the first 3.5% of buyers to adopt a new idea B) venturesome C) deliberative D) traditional E) trusting
Answer: B Diff: 2 Type: MC Page Ref: 216 Skill: Concept Objective: 6-3
75) During which stage of the business buying process is a buyer most likely to conduct value analysis, carefully studying components to determine if they can be redesigned, standardized, or made less expensive? A) general need recognition B) product specification C) proposal solicitation D) order-routine specification E) performance review
Answer: B Diff: 2 Type: MC Page Ref: 224 Skill: Concept Objective: 6-5
92) Pabst beer had a revival in Canada when it began targeting hipsters, a group of people who embrace edginess in their lives with independent thought, progressive thought, creativity, and witty banter. This targeting likely follows which segmentation approach? A) social class B) lifestyle C) occupation D) attitude towards the product E) personality
Answer: B Diff: 2 Type: MC Page Ref: 242 Skill: Application Objective: 7-2
15) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation? A) age and life cycle B) gender C) behaviour D) psychographic E) geographic
Answer: B Diff: 2 Type: MC Page Ref: 242-243 Skill: Concept Objective: 7-2
38) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; offer new products E) identify behaviours; understand spending power
Answer: B Diff: 2 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3
41) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) individual D) mass E) niche
Answer: B Diff: 2 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3
47) Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. A) unimportant to; desired by B) unimportant to; overlooked by C) too large; undesirable to D) unknown by; desired by E) disappointed by; geographically far from
Answer: B Diff: 2 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3
50) As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing. A) niche B) micro C) variable D) mass E) undifferentiated
Answer: B Diff: 2 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3
4) To differentiate themselves, many companies go beyond offering products and services; they are also developing and delivering customer ________. A) feedback B) experiences C) brands D) product lines E) events
Answer: B Diff: 2 Type: MC Page Ref: 278 Skill: Concept Objective: 8-1
101) You have an upset stomach. Your spouse rushes to the corner convenience store for a bottle of Pepto-Bismol. This product is a(n) ________ product. A) unsought B) convenience C) augmented D) shopping E) specialty
Answer: B Diff: 2 Type: MC Page Ref: 280 Skill: Application Objective: 8-1
25) During the ________ stage of the new-product development process, helps spot good ideas and eliminate poor ones. A) idea generation B) idea screening C) concept testing D) product development E) commercialization
Answer: B Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
26) GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________, to arrive at a realistic number to adopt. A) idea generation B) idea screening C) concept testing D) concept development E) business analysis
Answer: B Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
56) ________ refers to a detailed version of the new-product idea stated in meaningful consumer terms. A) Product generation B) The product concept C) Product testing D) Product commercialization E) Product crowdsourcing
Answer: B Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
58) According to the product life cycle theory, the sales of a typical product follow a(n) ________ curve. A) U-shaped B) S-shaped C) L-shaped D) I-shaped E) O-shaped
Answer: B Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-3
71) When a product enters the maturity stage, the company should consider ________. A) harvesting the product B) modifying the product, market, or marketing mix C) divesting the product D) maintaining the product E) dropping the product
Answer: B Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
73) A manufacturer with a product in the decline stage of the product life cycle might decide to ________ if it has reason to hope that competitors will leave the industry. A) harvest the product B) maintain the product without change C) drop the product D) search for replacements E) delay planning
Answer: B Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
91) Your local department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educational and professional, of reading every day. This is an example of a(n) ________ campaign. A) ethical B) social marketing C) for-profit D) consumer-generated E) differentiated
Answer: B Diff: 2 Type: MC Page Ref: 30 Skill: Application Objective: 1-5
70) A church targeting different demographic groups to increase attendance is an example of ________. A) for-profit marketing B) not-for-profit marketing C) mindless marketing D) ethics in marketing E) societal marketing
Answer: B Diff: 2 Type: MC Page Ref: 30-31 Skill: Concept Objective: 1-5
87) Berkowitz Piano Company can expand its product line in one of two common ways. Which of the following is one of those ways? A) internal marketing B) line filling C) product mixing D) social marketing E) line mixing
Answer: B Diff: 2 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
89) When a company lengthens its product line beyond its current range, it is ________. A) product line filling B) product line stretching C) product mixing D) increasing product depth E) building brand equity
Answer: B Diff: 2 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
92) Product mix ________ refers to the number of versions offered of each product in the line. Crest toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest Baking Soda formulations. A) length B) depth C) height D) width E) perimeter
Answer: B Diff: 2 Type: MC Page Ref: 301 Skill: Concept Objective: 8-4
34) Consumers view a brand as an important part of a product and branding can add ________. A) costs B) value C) layers D) depth E) elements
Answer: B Diff: 2 Type: MC Page Ref: 322 Skill: Concept Objective: 9-1
80) According to the text, consumer preference isn't based on taste alone. Consumers attach ________ to brands and develop ________ that go beyond a product's physical attributes. A) value; choices B) meaning; relationships C) benefits; alliances D) labels; lists E) names; icons
Answer: B Diff: 2 Type: MC Page Ref: 324 Skill: Concept Objective: 9-1
85) In order for customers to choose his brand, Spencer must get his public to see that his brand is ________. A) simple B) distinctive C) illusive D) engaging E) expansive
Answer: B Diff: 2 Type: MC Page Ref: 329 Skill: Concept Objective: 9-2
17) For a fee, some companies ________ names or symbols previously created by other manufacturers, names of well-known celebrities, and/or characters from popular movies and books, any of which can provide an instant and proven brand name. A) service B) license C) market D) package E) brand
Answer: B Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
58) A(n) ________ is created for and owned by a reseller of a product or service. A) advertising strategy B) private brand C) sales force D) national brand E) customer appreciation campaign
Answer: B Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
62) Retailers often price their store brands ________ comparable national brands. A) higher than B) lower than C) the same as D) unrelated to the price of E) much higher
Answer: B Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
21) Hershey's Kisses and Breyers Ice Cream each lending their names to create a new 2L ice cream product is an example of ________. A) brand advocacy B) co-branding C) megabranding D) brand equity E) a brand touchpoint
Answer: B Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
67) Co-branding has many limitations. Which of the following is definitely one of them? A) customer complaints B) brands must be complementary C) competition envy D) partner distraction E) ease of use limitations
Answer: B Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
96) Virgin entering the theme park market by creating Virgin Rollercoaster World is an example of a ________. A) line extension B) brand extension C) cobranding D) licensing E) product life cycle
Answer: B Diff: 2 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
39) Thanks to the rise in popularity of social media customers are beginning to tell stories about their favourite brands. This is an example of ________. A) selling out B) brand advocacy C) solicitation D) mixed messaging E) computerization
Answer: B Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-5
6) In ________, price is considered along with the other marketing mix variables before the marketing program is set. A) target return pricing B) value-based pricing C) variable costs D) price elasticity E) cost-based pricing
Answer: B Diff: 2 Type: MC Page Ref: 355 Skill: Concept Objective: 10-1
25) Which of the following is an external factor that affects pricing decisions? A) the salaries of production management B) competition C) the salaries of finance management D) overall pricing objectives E) the company's overall marketing strategy
Answer: B Diff: 2 Type: MC Page Ref: 360 Skill: Concept Objective: 10-2
32) Under ________, the market consists of many buyers and sellers who trade 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) socialism
Answer: B Diff: 2 Type: MC Page Ref: 365 Skill: Concept Objective: 10-2
81) With an understanding of price elasticity, sellers should know that the less elastic the demand for their product is, the more advantageous it is for them to ________. A) drop the price B) raise the price C) leave the price where it is D) discontinue the item E) bundle the product with another product
Answer: B Diff: 2 Type: MC Page Ref: 366 Skill: Application Objective: 10-2
36) If demand hardly changes with a small change in price, we say the demand is ________. A) variable B) inelastic C) value-based D) at break-even pricing E) market penetrating
Answer: B Diff: 2 Type: MC Page Ref: 366 Skill: Concept Objective: 10-2
38) Which of the following economic factors does not have a strong impact on a firm's pricing strategy? A) an economic boom B) the reseller's reaction to price changes C) an economic recession D) inflation E) interest rates
Answer: B Diff: 2 Type: MC Page Ref: 367 Skill: Concept Objective: 10-2
83) When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers, Pepsi was using ________. A) marketing-skimming pricing B) market-penetration pricing C) new-product pricing D) discount pricing E) promotional allowances
Answer: B Diff: 2 Type: MC Page Ref: 368 Skill: Application Objective: 10-3
84) Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy. A) market-skimming B) market-penetration C) zone D) discount E) captive-product
Answer: B Diff: 2 Type: MC Page Ref: 368 Skill: Application Objective: 10-3
48) When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line. A) non-price competition B) value differences C) quantity levels D) images E) strategies
Answer: B Diff: 2 Type: MC Page Ref: 369 Skill: Concept Objective: 10-4
87) The fact that a hot dog costs five times more at Disneyland than at Costco is an example of ________. A) allowance pricing B) captive-product pricing C) penetration pricing D) segmented pricing E) promotional pricing
Answer: B Diff: 2 Type: MC Page Ref: 370 Skill: Application Objective: 10-4
51) Hotline Long Distance Service uses captive-product pricing for its phone call charges. Because this is a service, the price is broken into a fixed rate plus a per-call ________. A) fixed rate usage B) variable usage rate C) standard usage rate D) market usage rate E) fixed fee
Answer: B Diff: 2 Type: MC Page Ref: 370 Skill: Concept Objective: 10-4
60) Consumers usually perceive higher-priced products as ________. A) not within reach of most people B) having a higher quality C) having high profit margins D) popular brands E) being in the introductory stage of the product life cycle
Answer: B Diff: 2 Type: MC Page Ref: 373 Skill: Concept Objective: 10-5
67) The Internet offers ________, where the price can easily be adjusted to meet changes in demand. A) captive pricing B) dynamic pricing C) basing-point pricing D) price bundling E) cost-plus pricing
Answer: B Diff: 2 Type: MC Page Ref: 375 Skill: Concept Objective: 10-5
69) Which of the following is a poor reason for a company to initiate a price cut? A) to boost sales B) to obtain prestige C) to dominate the market D) to relieve excess capacity E) to influence falling demand
Answer: B Diff: 2 Type: MC Page Ref: 376 Skill: Concept Objective: 10-6
74) Federal legislation on price-fixing requires that sellers set their prices ________. A) based on their fixed and variable costs B) without communication with competitors C) to achieve a specified profit margin D) with the intention of putting competitors out of business E) consistently throughout a region
Answer: B Diff: 2 Type: MC Page Ref: 379 Skill: Concept Objective: 10-7
1) Which of the following would be considered an upstream partner in a company's supply chain? A) a firm that resells a finished product and shares the net sales with the producer B) a firm that provides technical expertise in the production of a product C) a firm that markets a product to consumers through social media D) a firm that buys products at wholesale cost from the company E) a firm that exclusively markets a product to other businesses
Answer: B Diff: 2 Type: MC Page Ref: 391 Skill: Concept Objective: 11-1
9) In which of the following situations is a producer guaranteed full control over product sales? A) a corporate marketing channel B) a direct marketing channel C) a contractual distribution channel D) a horizontal marketing system E) an administered marketing system
Answer: B Diff: 2 Type: MC Page Ref: 398 Skill: Concept Objective: 11-3
25) In the second step of the marketing research process, research objectives should be translated into specific ________. A) marketing goals B) information needs C) dollar amounts D) research methods E) information sources
Answer: B Diff: 2 Type: MC Page Ref: 4 Skill: Concept Objective: 5-3
21) A(n) ________ marketing system combines successive stages of production and distribution under single ownership, where channel leadership is established through common ownership. A) contractual vertical B) corporate vertical C) administered vertical D) horizontal E) direct
Answer: B Diff: 2 Type: MC Page Ref: 400 Skill: Concept Objective: 11-3
29) TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This arrangement will benefit all three companies. What kind of channel arrangement is being followed in this case? A) administered vertical marketing system B) horizontal marketing system C) direct marketing system D) contractual vertical marketing system E) corporate vertical marketing system
Answer: B Diff: 2 Type: MC Page Ref: 401 Skill: Concept Objective: 11-3
32) Clara's, a cosmetics manufacturer, sells many of its products through retail outlets. However, the firm sells a few expensive, popular products only through direct selling methods. What kind of channel arrangement does Clara's follow for all of its products together? A) horizontal marketing system B) multichannel distribution system C) administered vertical marketing system D) contractual vertical marketing system E) corporate vertical marketing system
Answer: B Diff: 2 Type: MC Page Ref: 402 Skill: Concept Objective: 11-3
14) Which of the following is an example of a horizontal conflict in a distribution channel? A) a Nike shoe dealer complaining that the shoes provided to the dealer are defective B) a Ford car dealer complaining that another Ford dealer is underpricing the same models C) a FedEx agent complaining that a DHL agent is cutting off his business D) a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time E) a Gucci executive complaining to Gucci's suppliers of delays in shipping consignments
Answer: B Diff: 2 Type: MC Page Ref: 403 Skill: Concept Objective: 11-3
15) Vertical conflicts in distribution channels are conflicts that occur between ________. A) same levels in the same channel B) different levels of the same channel C) same levels of different channels D) different levels of different channels E) retailers and customers
Answer: B Diff: 2 Type: MC Page Ref: 403 Skill: Concept Objective: 11-3
35) Which of the following is true of an intensive distribution strategy? A) It gives sole rights to select dealers in a given area. B) It strives to make products available where and when consumers want them. C) Compared with other distribution strategies, it uses the least number of intermediaries to sell products. D) Compared with other distribution strategies, it provides the best support for dealers of luxury products. E) It discards traditional intermediaries and uses direct marketing to reach customers.
Answer: B Diff: 2 Type: MC Page Ref: 407 Skill: Concept Objective: 11-4
38) ________ distribution gives producers good market coverage with more control and less cost than does intensive distribution. A) Vertical B) Selective C) Horizontal D) Comprehensive E) Inclusive
Answer: B Diff: 2 Type: MC Page Ref: 408 Skill: Concept Objective: 11-4
1) ________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Sole sourcing B) Retailing C) Manufacturing D) Procurement E) Warehousing
Answer: B Diff: 2 Type: MC Page Ref: 433 Skill: Concept Objective: 12-1
2) Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer? A) when consumers need warranty information about shopping goods B) when customers are willing to conduct their own locate-compare-select process C) when the store offers luxury products at highly affordable prices D) when customers are looking for a narrow product line with a deep assortment E) when the store has been converted into a designer shop from a department store
Answer: B Diff: 2 Type: MC Page Ref: 434 Skill: Concept Objective: 12-1
11) Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewellery, and food. Jones & Company is best described as a ________. A) supermarket B) department store C) specialty store D) pop-up store E) category killer
Answer: B Diff: 2 Type: MC Page Ref: 435 Skill: Concept Objective: 12-1
7) Which type of retailer typically carries deep product assortments of narrow product lines? A) self-service retailers B) specialty stores C) warehouse clubs D) discount stores E) factory outlets
Answer: B Diff: 2 Type: MC Page Ref: 435 Skill: Concept Objective: 12-1
9) Specialty stores are characterized by ________. A) the sale of convenience and staple items B) narrow product lines with deep assortments C) a wide range of products and categories D) low prices on a wide range of goods E) routinely purchased food products and services
Answer: B Diff: 2 Type: MC Page Ref: 435 Skill: Concept Objective: 12-1
17) ________ refer to retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume. A) Convenience stores B) Discount stores C) Full-service retailers D) Designer shops E) Specialty stores
Answer: B Diff: 2 Type: MC Page Ref: 436 Skill: Concept Objective: 12-1
78) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional salespeople to sell its products to wholesalers and cities. This is an example of ________. A) sales promotion B) personal selling C) public relations D) direct marketing E) advertising
Answer: B Diff: 2 Type: MC Page Ref: 468 Skill: Application Objective: 13-1
2) The use of short-term incentives to encourage the purchase or sale of a product or service is called ________. A) direct marketing B) sales promotion C) personal selling D) public relations E) publicity
Answer: B Diff: 2 Type: MC Page Ref: 468 Skill: Concept Objective: 13-1
11) Which of the following is an accurate guideline for a clear mission statement? A) A mission statement should focus on sales. B) A mission statement should declare how the company intends to win in the marketplace. C) A mission statement should focus on profits. D) A mission statement should be very general. E) A mission statement should be very specific.
Answer: B Diff: 2 Type: MC Page Ref: 47 Skill: Concept Objective: 2-1
18) To produce better communications consistency, a unified company image, and greater sales impact, some companies employ a(n) ________. A) advertising agency B) marketing communications director C) public relations specialist D) personal sales force E) media buyer
Answer: B Diff: 2 Type: MC Page Ref: 474 Skill: Concept Objective: 13-2
32) ________ is used heavily when introducing a new product category. The objective is to build primary demand. A) Persuasive advertising B) Informative advertising C) Comparative advertising D) Patronage advertising E) Institutional advertising
Answer: B Diff: 2 Type: MC Page Ref: 478 Skill: Concept Objective: 13-3
37) Using the ________ method for setting an advertising budget, the company starts with total revenues, deducts operating expenses and capital outlays, and then devotes some portion of the remaining funds to advertising. A) percentage-of-sales B) affordable C) competitive-parity D) objective-and-task E) moving-average
Answer: B Diff: 2 Type: MC Page Ref: 479 Skill: Concept
88) An ad for Mongoose mountain bikes shows a serious biker traversing remote and rugged but beautiful terrain and states, "There are places that are so awesome and so killer that you'd like to tell the whole world about them. But please, don't." This ad uses the ________ execution style. A) slice of life B) lifestyle C) fantasy D) scientific evidence E) personality symbol
Answer: B Diff: 2 Type: MC Page Ref: 485 Skill: Application Objective: 13-3
91) Apple recently ran ads featuring real people who had switched from Microsoft Windows-based PCs to Macs. When companies use people, actors, or sports celebrities as product endorsers, what kind of execution style is being used? A) musical B) testimonial evidence C) scientific evidence D) lifestyle E) fantasy
Answer: B Diff: 2 Type: MC Page Ref: 486 Skill: Application Objective: 13-3
62) For many years, ________ have dominated the media mix used by national advertisers. A) radio and television B) television and magazines C) direct mail and billboards D) radio and digital media E) newspapers and direct mail
Answer: B Diff: 2 Type: MC Page Ref: 488 Skill: Concept Objective: 13-3
75) Kimball Gardens is a company that operates as two distinct businesses—one that sells lawn and garden products and one that markets booklets. Each business is called a ________. A) separate entity B) strategic business unit (SBU) C) matrix D) division E) business portfolio
Answer: B Diff: 2 Type: MC Page Ref: 49 Skill: Application Objective: 2-2
18) Business portfolio planning involves two steps: ________ and ________. A) identifying SBUs; assessing the attractiveness of SBUs B) analyzing the current business portfolio; shaping the future business portfolio C) identifying internal strengths; identifying external opportunities D) conducting a SWOT analysis; establishing marketing controls E) identifying growth opportunities; evaluating growth opportunities
Answer: B Diff: 2 Type: MC Page Ref: 49 Skill: Concept Objective: 2-2
27) ________ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment. A) Stars B) Cash cows C) Question marks D) Dogs E) Cats
Answer: B Diff: 2 Type: MC Page Ref: 50 Skill: Concept Objective: 2-2
31) Which of the following accurately reflects a problem with a matrix approach to strategic planning? A) It focuses on future planning. B) It can be costly to conduct. C) It detracts from the focus on profit maximization. D) It can lead to over estimation of profits. E) It focuses on classifying future businesses.
Answer: B Diff: 2 Type: MC Page Ref: 51 Skill: Concept Objective: 2-2
32) Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is more ________. A) short-term oriented B) decentralized C) limitation-free D) product-oriented E) centralized
Answer: B Diff: 2 Type: MC Page Ref: 51 Skill: Concept Objective: 2-2
81) Lyall Electric, Inc., maintains a sales force for its small appliance customers and a separate sales force for its automotive customers. Lyall Electric utilizes a ________ structure. A) product sales force B) customer sales force C) territorial sales force D) workload sales force E) complex sales force
Answer: B Diff: 2 Type: MC Page Ref: 513 Skill: Application Objective: 14-2
13) After a company has determined its sales force structure, it is ready to determine what ________ it needs. A) team structure B) sales force size C) marketing-sales liaison D) sales force supervision E) compensation package
Answer: B Diff: 2 Type: MC Page Ref: 513 Skill: Concept Objective: 14-2
31) The aim of sales motivation is to encourage salespeople to ________. A) "work smart" B) "work hard" C) "work cooperatively" D) "work creatively" E) "work quickly"
Answer: B Diff: 2 Type: MC Page Ref: 519 Skill: Concept Objective: 14-2
1) Which of the following is most essential to even the simplest definition of marketing? A) demand management B) the production concept C) customer relationships D) making a sale E) making a profit
Answer: C Diff: 1 Type: MC Page Ref: 5 Skill: Concept Objective: 1-1
78) Acme, Inc., has modified the distribution process of its widgets and gadgets in order to tap into the Eastern European market. Acme is likely following a ________ strategy. A) market penetration B) market development C) diversification D) harvesting E) product development
Answer: B Diff: 2 Type: MC Page Ref: 52 Skill: Application Objective: 2-2
36) Canada's Wonderland is identifying and developing new markets for its current theme parks. Canada's Wonderland is exploring possibilities for ________. A) market penetration B) market development C) downsizing D) diversification E) product development
Answer: B Diff: 2 Type: MC Page Ref: 52 Skill: Concept Objective: 2-2
65) The growing use of sales promotions as a type of marketing tool has resulted in ________. A) advertising specialization B) promotion clutter C) promotional marketing D) advertising clutter E) promotion fatigue
Answer: B Diff: 2 Type: MC Page Ref: 530 Skill: Concept Objective: 14-4
68) Of the major consumer promotion tools, which is the most effective for introducing a new product or creating excitement for an existing one? A) coupons B) samples C) cash refunds D) advertising E) rebates
Answer: B Diff: 2 Type: MC Page Ref: 531 Skill: Concept Objective: 14-4
69) Of the main consumer promotion tools, which is the most costly? A) coupons B) samples C) cash refunds D) advertising E) billboards
Answer: B Diff: 2 Type: MC Page Ref: 531 Skill: Concept Objective: 14-4
72) ________ are goods offered either free or at low cost as an incentive to buy a product; they may come in-pack, on-pack, or delivered through the mail. A) Rebates B) Premiums C) Price packs D) Cash refund offers E) Point-of-purchase promotions
Answer: B Diff: 2 Type: MC Page Ref: 532 Skill: Concept Objective: 14-4
75) Manufacturers may offer a(n) ________ in return for the retailer's agreement to feature the manufacturer's products in advertising or display. A) POP promotion B) allowance C) incentive promotion D) price pack E) premium
Answer: B Diff: 2 Type: MC Page Ref: 533 Skill: Concept Objective: 14-4
71) Adams Cutlery has always relied upon advertising to market its products to final customers. However, now the marketing team at Adams Cutlery is considering a direct marketing campaign consisting of a company website, email to current customers, and an online catalog. Which of the following would the marketing team expect to gain as a result of implementing this direct marketing plan? A) the ability to increase the range of products the company offers B) the ability to learn more about their customers and tailor offerings to fit their needs C) more control over customers' interactions with the company D) a higher cost-per-contact that could prove to be more cost effective than advertising in mass media E) a wealth of information about competitors and their products
Answer: B Diff: 2 Type: MC Page Ref: 547-548 Skill: Application Objective: 15-1
13) How does a company's effective use of a customer database benefit consumers? A) Companies make name-brand products and images readily available to customers. B) Companies match customer needs and interests with products and services. C) Customers receive better prices on products and services that they need. D) Customers receive faster and more reliable service from companies. E) Customers receive instant credit from more companies.
Answer: B Diff: 2 Type: MC Page Ref: 550 Skill: Concept Objective: 15-1
6) Which of the following is definitely one of the benefits for the seller in direct marketing? A) transportation options B) price and program flexibility C) mass reach and frequency D) increasing cost-per-contact E) economics of order processing
Answer: B Diff: 2 Type: MC Page Ref: 550 Skill: Concept Objective: 15-1
8) Which of the following is necessary for direct marketing to be effective? A) an online presence B) a good customer database C) a well-trained sales force D) inbound telephone marketing E) use of new digital direct marketing technologies
Answer: B Diff: 2 Type: MC Page Ref: 550 Skill: Concept Objective: 15-1
34) What is the fastest growing form of direct marketing? A) mobile-phone marketing B) digital and social media marketing C) interactive TV D) direct-response television E) podcasts
Answer: B Diff: 2 Type: MC Page Ref: 550 Skill: Concept Objective: 15-2
53) ________ are designed to supplement other sales channels, rather than to sell the company's products directly. A) Marketing websites B) Branded community websites C) Small business websites D) Community service websites E) Design ads
Answer: B Diff: 2 Type: MC Page Ref: 554 Skill: Concept Objective: 15-3
56) The largest form of online advertising is ________. A) online classifieds B) search-related ads C) display ads D) contextual advertising E) content sponsorship
Answer: B Diff: 2 Type: MC Page Ref: 555 Skill: Concept Objective: 15-3
86) "Your Cleaning Team" is a company that provides house cleaning services in major urban and suburban areas. Marketers at Your Cleaning Team 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 it on to their friends and colleagues. The marketers at Your Cleaning Team are using ________. A) content sponsorship B) viral marketing C) online marketing D) rich media ads E) a marketing website
Answer: B Diff: 2 Type: MC Page Ref: 557 Skill: Application Objective: 15-3
81) Joe Cheatham, a stay-at-home father, regularly posts new entries on a widely read blog. In these entries, he often reviews consumer products that he uses during the course of his day. This is an example of ________. A) social media B) online marketing C) viral marketing D) content sponsorship E) branded web community
Answer: B Diff: 2 Type: MC Page Ref: 558 Skill: Application Objective: 15-3
63) Which of the following is a challenge of marketing through social media? A) Existing social media are resistant to direct advertising. B) Users may resent an intrusive marketing message. C) It is hard to measure how frequently social media are used and by how many participants. D) Most existing social media are already controlled by major corporations. E) Fewer consumers are using social media such as Facebook and Twitter.
Answer: B Diff: 2 Type: MC Page Ref: 561 Skill: Concept Objective: 15-4
17) The use of which of the new forms of direct-mail marketing is booming? A) fax mail B) email C) voice mail D) Canada Post E) samples
Answer: B Diff: 2 Type: MC Page Ref: 566 Skill: Concept Objective: 15-4
76) Neal Murphy sells his company's unique gift items on television by providing information about the products using 30-minute infomercials. Neal is using ________. A) interactive TV B) direct response television advertising C) phishing D) telemarketing E) public relations
Answer: B Diff: 2 Type: MC Page Ref: 569 Skill: Application Objective: 15-4
27) Direct-response advertisements always contain ________, making it easier for marketers to gauge their effectiveness. A) a mailing address for comments B) a toll-free number or web address C) Nielsen data D) an order number E) pop-ups
Answer: B Diff: 2 Type: MC Page Ref: 569 Skill: Concept Objective: 15-4
12) When there is price competition, many companies adopt ________ rather than cutting prices to match competitors. A) pricing power B) value-added pricing strategies C) fixed costs D) price elasticity E) image pricing
Answer: B Diff: 2 Type: MC Page Ref: 8 Skill: Concept Objective: 10-1
1) The marketing concept recognizes that organizations thrive from day to day by determining ________ of target group customers and fulfilling those more effectively and efficiently than competitors do. A) demands B) needs and wants C) innovations D) personal benefits E) social benefits
Answer: B Diff: 2 Type: MC Page Ref: 82 Skill: Concept Objective: 3-1
81) Several companies, some of them operating through the Internet, offer "paycheck advances." Consumers are encouraged to take out a loan against a paycheck they expect to receive in the near future. These short-term loans with high-interest rates, and high penalties for late payments, are often marketed to consumers who do not have traditional bank accounts. These companies could most easily be criticized for which of the following? A) shoddy products B) poorly serving disadvantaged consumers C) high-pressure selling D) high advertising and promotion costs E) excessive markups
Answer: B Diff: 2 Type: MC Page Ref: 83 Skill: Application Objective: 3-2
5) Critics of the marketing system are most likely to charge that intermediaries ________. A) are too few in number B) are inefficient C) provide only necessary services D) underprice their services E) are too competitive
Answer: B Diff: 2 Type: MC Page Ref: 83 Skill: Concept Objective: 3-2
7) Critics charge that high advertising and promotion costs unnecessarily increase retail prices. Marketers would most likely respond to this criticism by arguing that advertising adds ________. A) only psychological value B) value by providing information about product availability and merits of a product C) quality to the product D) functional value to the product E) economic value to the product
Answer: B Diff: 2 Type: MC Page Ref: 84 Skill: Concept Objective: 3-2
10) Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product's ________ or ________. A) true price; performance B) features; performance C) packaging; costs D) design; features E) availability; package contents
Answer: B Diff: 2 Type: MC Page Ref: 85 Skill: Concept Objective: 3-2
12) A major step in regulating "unfair or deceptive acts or practices" was the development of the ________. A) Grusko Act B) Competition Bureau C) Canadian Commerce Commission D) Industry Act E) Business Improvement Bureau
Answer: B Diff: 2 Type: MC Page Ref: 85 Skill: Concept Objective: 3-2
17) Perceived obsolescence might involve which of the following? A) the use of safe materials B) changing consumer styles C) the holding back of attractive functional features, then introducing them later to make older models obsolete D) the use of materials that will rust E) the use of components that will break
Answer: B Diff: 2 Type: MC Page Ref: 87-88 Skill: Concept Objective: 3-2
21) Critics say marketing is seen as creating false wants that benefit ________ more than ________. A) consumers; industry B) industry; consumers C) stores; manufacturers D) exporters; importers E) independent sellers; chain stores
Answer: B Diff: 2 Type: MC Page Ref: 89 Skill: Concept Objective: 3-2
16) When it comes to communicating with customers, marketers have traditionally asked the question, "How can we influence our customers?" Effective marketers now ask, ________. A) "How can we apply the production concept?" B) "How can our customers influence us?" C) "How can we apply the selling concept?" D) "How can we apply the selling concept using social media?" E) "How can we apply the product concept?"
Answer: B Diff: 2 Type: MC Page Ref: 9 Skill: Concept Objective: 1-2
32) Which of the following is most responsible for the shrinking number of competitors in almost every major industry? A) declining materialism and a return to more basic values B) acquisition of competitors C) patents that create barriers to entry D) unfair antitrust regulations E) predatory pricing
Answer: B Diff: 2 Type: MC Page Ref: 91 Skill: Concept Objective: 3-2
31) Which of the following consumer products would likely be marketed using the selling concept? A) laundry detergent B) funeral services C) chocolate bars D) hair stylist services E) computer tablets
Answer: B Diff: 3 Type: MC Page Ref: 12 Skill: Concept Objective: 1-3
34) Which of the following is true of ethnographic research? A) It is conducted within traditional focus groups. B) It provides a window into customers' unconscious actions and unexpressed needs and feelings. C) It provides researchers with secondary data. D) It is most popular in the service sector. E) It is a research option when observation is not possible.
Answer: B Diff: 3 Type: MC Page Ref: 167 Skill: Concept Objective: 5-3
80) A shoe company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and want to wear the same shoes. The shoe company is hoping that fans of the band view the band as a ________. A) membership group B) reference group C) brand personality D) subculture E) lifestyle
Answer: B Diff: 3 Type: MC Page Ref: 202 Skill: Application Objective: 6-1
61) Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. Which of the following is one of these factors? A) postpurchase behaviour B) attitude of others C) cognitive dissonance D) alternative evaluation E) new product adoption
Answer: B Diff: 3 Type: MC Page Ref: 214 Skill: Concept Objective: 6-2
7) Value-based pricing is the reverse process of ________ pricing. A) variable cost B) cost-plus C) cost-based D) good-value E) value-added
Answer: C Diff: 2 Type: MC Page Ref: 355 Skill: Concept Objective: 10-1
97) Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves? A) Different people want a greater selection. B) Different people want different mixes of benefits from the products they buy. C) Procter & Gamble has little competition. D) Retailers request it. E) It creates healthy competition.
Answer: B Diff: 3 Type: MC Page Ref: 253 Skill: Application Objective: 7-3
52) Which of the following is an extreme form of market segmentation? A) segmented strategy B) micromarketing C) differentiated marketing D) mass marketing E) undifferentiated marketing
Answer: B Diff: 3 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3
70) Which of the following would lead to continued sales in the maturity stage of the PLC? A) overcapacity of products in the market B) modifying the marketing mix C) strong management D) more promotion E) more spending
Answer: B Diff: 3 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
87) The Chevrolet Prism and Toyota Corolla are the same car, made on the same assembly line by the same people, using the same parts, and have the same warranty. Yet, the baseline model of the Toyota Corolla sells for $250 more than its counterpart. We can conclude that Toyota Corolla has ________. A) lower brand equity B) higher brand equity C) better distribution networks D) a better advertising agency E) better strategic alliances
Answer: B Diff: 3 Type: MC Page Ref: 327 Skill: Concept Objective: 9-2
6) The fundamental asset underlying brand equity is ________-the value of the customer relationships that the brand creates. A) the customer mix B) customer equity C) line equity D) service variability E) the service encounter
Answer: B Diff: 3 Type: MC Page Ref: 329 Skill: Concept Objective: 9-2
24) A company has four choices when it comes to developing brands. Which is definitely one of those choices? A) line inversion B) brand extension C) multibrands D) width and depth perception E) international brands
Answer: B Diff: 3 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
94) Before a company blindly decides to incorporate a brand extension, they need to seriously consider which of the following? A) new customers likes and dislikes B) how well the brand's association fits the new product C) past customers preferences D) nostalgia E) word-of-mouth promotions on YouTube and Twitter
Answer: B Diff: 3 Type: MC Page Ref: 335 Skill: Concept Objective: 9-3
82) If Canon Camera Company follows a high-price, high-margin strategy, what will competitors most likely do? A) They will go out of business. B) They will want to compete by undercutting Canon's price. C) They will advertise less. D) They will unbundle their products. E) They will use market-skimming pricing.
Answer: B Diff: 3 Type: MC Page Ref: 368 Skill: Application Objective: 10-3
85) Market-skimming pricing would likely be most effective in selling ________. A) any convenience item B) an electronic device for which research and development must be recouped C) shampoo and bath soap D) anything easily copied by competitors E) most items at EDLP retailers such as Walmart
Answer: B Diff: 3 Type: MC Page Ref: 368 Skill: Application Objective: 10-3
8) Which of the following is a factor in the changes occurring in today's marketing communications? A) Mass markets have consolidated, and marketers are shifting towards mass marketing. B) Improvements in communication technologies are changing how companies and customers communicate with each other. C) Companies sometimes invest millions of dollars in the mass media. D) Mass media no longer capture the majority of promotional budgets. E) Consumers tend to make rash decision based on impulse.
Answer: B Diff: 3 Type: MC Page Ref: 469-470 Skill: Concept Objective: 13-2
20) After management has identified the key businesses making up its company, what is the next step? A) Identify businesses in which to invest. B) Assess the attractiveness of its SBUs. C) Decide whether to harvest any businesses. D) Complete short-range planning. E) Complete SBU identification.
Answer: B Diff: 2 Type: MC Page Ref: 49 Skill: Concept Objective: 2-2
30) ________ calls for testing new-product concepts with groups of target consumers. A) Concept development B) Concept testing C) Idea generation D) Idea screening E) Test marketing
Answer: B (Market Testing in slides) Diff: 1 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
75) Jolene's firm believes that consumers will not buy enough of its products unless the firm undertakes a large-scale selling and promotion effort. Jolene's firm is practicing the ________. A) production concept B) marketing concept C) selling concept D) relationship concept E) social advertising campaign
Answer: C Diff: 1 Type: MC Page Ref: 12 Skill: Application
2) The marketing environment is composed of ________. A) the green environment and the demographic environment B) strategic planning and the natural environment C) the microenvironment and the macroenvironment D) the minienvironment and the macroenvironment E) the tactical environment and the strategic environment
Answer: C Diff: 1 Type: MC Page Ref: 120 Skill: Concept Objective: 4-1
59) Marketers should be aware of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. This is the ________ environment. A) socio-legal B) cultural C) political D) legal-technological E) economic
Answer: C Diff: 1 Type: MC Page Ref: 138 Skill: Concept Objective: 4-4
2) To create value for customers and build meaningful relationships with them, marketers must ultimately ________. A) perform thorough ethnographic research B) implement marketing intelligence C) gain a deep understanding of customers' needs and wants D) provide attractive promotions E) make consumers loyal
Answer: C Diff: 1 Type: MC Page Ref: 157 Skill: Concept Objective: 5-1
26) Secondary data consists of information ________. A) that already exists somewhere but is outdated B) that does not currently exist in an organized form C) that already exists somewhere but was collected for another purpose D) that is gathered by competitors E) that the researcher can only obtain through surveys and observation
Answer: C Diff: 1 Type: MC Page Ref: 165 Skill: Concept Objective: 5-3
9) Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations. A) alternative evaluations B) cognitive dissonances C) subcultures D) social classes E) occupations
Answer: C Diff: 1 Type: MC Page Ref: 199 Skill: Concept
62) After purchasing a product, the consumer will be satisfied or dissatisfied and will engage in ________. A) need recognition B) alternative evaluation C) postpurchase behaviour D) product expectations E) information searches
Answer: C Diff: 1 Type: MC Page Ref: 214 Skill: Concept Objective: 6-2
91) Which of the following is a part of the consumer market? A) Scott Sign Systems sells interior signs to an Alabama resort. B) A municipal government buys chemicals for its city swimming pools. C) Sue buys a gift for her mother. D) A Canadian software company buys airplane tickets to send a group of salespeople to make a presentation to a heavy equipment manufacturer in Japan. E) Airmark sells a vinyl printing press to a manufacturer of plastic bags.
Answer: C Diff: 1 Type: MC Page Ref: 218 Skill: Application Objective: 6-4
68) As compared to consumer markets, business markets are ________. A) approximately the same B) smaller C) huge D) somewhat larger E) less complex
Answer: C Diff: 1 Type: MC Page Ref: 218 Skill: Concept Objective: 6-4
85) When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New Zealand, it is using which segmenting base? A) economic B) political and legal C) geographic D) demographic
Answer: C Diff: 1 Type: MC Page Ref: 240 Skill: Application Objective: 7-2
2) Which of the following best describes market target? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's brain that the brand or company should occupy
Answer: C Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1
57) ________ is the total combined customer lifetime values of all the company's current and potential customers. A) Share of customer B) Customer lifetime value C) Customer equity D) Profitability E) Share of market
Answer: C Diff: 1 Type: MC Page Ref: 25 Skill: Concept Objective: 1-4
11) ________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. A) Shopping products B) Unsought products C) Specialty products D) Industrial products E) Line extensions
Answer: C Diff: 1 Type: MC Page Ref: 280 Skill: Concept Objective: 8-1
12) ________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. These products require a lot of advertising, personal selling, and other marketing efforts. A) Specialty products B) Line extensions C) Unsought products D) Shopping products E) Convenience products
Answer: C Diff: 1 Type: MC Page Ref: 281 Skill: Concept Objective: 8-1
60) Increasing profits will most likely occur at which stage of the PLC? A) product development B) introduction C) growth D) maturity E) decline
Answer: C Diff: 1 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
2) A key element in a company's relationship with consumers, a ________ has personality, so it involves our emotions as consumers. A) product line B) product experience C) brand D) service E) product attribute
Answer: C Diff: 1 Type: MC Page Ref: 322 Skill: Concept Objective: 9-1
18) ________ occurs when two established brand names of different companies are used on the same product. A) A brand extension B) Brand equity C) Co-branding D) Internal marketing E) Cannibalization
Answer: C Diff: 1 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
26) A ________ involves the use of a successful brand name to launch new or modified products in a new category. A) line extension B) product line C) brand extension D) private brand E) brand symbol
Answer: C Diff: 1 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
1) ________ is the amount of money charged for a product or service. A) Experience curve B) Demand curve C) Price D) Wage E) Salary
Answer: C Diff: 1 Type: MC Page Ref: 354 Skill: Concept Objective: 10-1
13) ________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks. A) Value-based B) Fixed cost C) Cost-based D) Variable E) Skimming
Answer: C Diff: 1 Type: MC Page Ref: 358-359 Skill: Concept Objective: 10-1
42) Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________. A) market-level pricing B) market-competitive pricing C) market-skimming pricing D) market-price lining E) market-price filling
Answer: C Diff: 1 Type: MC Page Ref: 368 Skill: Concept Objective: 10-3
4) The first step in strategic planning is to ________. A) set objectives and goals B) develop the business portfolio C) define the company mission D) plan marketing strategies E) identify a problem
Answer: C Diff: 1 Type: MC Page Ref: 46 Skill: Concept Objective: 2-1
1) A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ________. A) direct marketing B) integrated marketing C) the promotion mix D) competitive marketing E) target marketing
Answer: C Diff: 1 Type: MC Page Ref: 468 Skill: Concept Objective: 13-1
26) Which promotional mix strategy directs marketing efforts toward final consumers? A) push B) blitz C) pull D) buzz E) pulse
Answer: C Diff: 1 Type: MC Page Ref: 476 Skill: Concept Objective: 13-2
40) Which method of setting an advertising budget is based on analyzing competitors' spending? A) affordable method B) percentage-of-sales method C) competitive-parity method D) objective-and-task method E) integrated method
Answer: C Diff: 1 Type: MC Page Ref: 480 Skill: Concept Objective: 13-3
55) Ads that are built around dream themes use which type of execution style? A) mood or image B) musical C) fantasy D) slice of life E) scientific evidence
Answer: C Diff: 1 Type: MC Page Ref: 485 Skill: Concept Objective: 13-3
4) ________ involves two-way, personal communication between salespeople and individual customers—whether face-to-face, by telephone, through video or web conferences, or by other means. A) Advertising B) Public relations C) Personal selling D) Mass marketing E) Direct marketing
Answer: C Diff: 1 Type: MC Page Ref: 510-511 Skill: Concept Objective: 14-1
14) Companies that use a customer sales force structure organize their salespeople by ________. A) product B) territory C) industry D) demand E) specialty knowledge
Answer: C Diff: 1 Type: MC Page Ref: 513 Skill: Concept Objective: 14-2
33) Which of the following is a useful tool for identifying future growth opportunities? A) the BCG matrix B) the business portfolio C) the product/market expansion grid D) the value chain E) the value delivery network
Answer: C Diff: 1 Type: MC Page Ref: 52 Skill: Concept Objective: 2-2
35) Making more sales to current customers without changing a firm's products is called ________. A) market development B) market growth C) market penetration D) product development E) market attractiveness
Answer: C Diff: 1 Type: MC Page Ref: 52 Skill: Concept Objective: 2-2
1) What are the two goals of direct marketing? A) to identify a potential customer and obtain an immediate response B) to obtain an immediate response and to facilitate a purchase C) to obtain an immediate response and build a lasting customer relationship D) to provide information and build a lasting customer relationship E) to save marketing dollars and facilitate a purchase
Answer: C Diff: 1 Type: MC Page Ref: 547 Skill: Concept Objective: 15-1
3) Amazon.ca and eBay have built their entire promotional approach around ________. A) mass marketing B) sales promotion C) direct marketing D) public relations E) personal selling
Answer: C Diff: 1 Type: MC Page Ref: 548 Skill: Concept Objective: 15-1
35) Consumers and companies connect to each other and access and share huge amounts of information through ________. A) a transaction site B) a content site C) digital networks D) an extranet E) interactive tv
Answer: C Diff: 1 Type: MC Page Ref: 552 Skill: Concept Objective: 15-2
3) According to management guru Peter Drucker, "The aim of marketing is to ________." A) create customer demands B) identify customer demands C) make selling unnecessary D) set realistic customer expectations E) sell products
Answer: C Diff: 1 Type: MC Page Ref: 6 Skill: Concept Objective: 1-1
72) Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a ________. A) need B) necessity C) demand D) satisfier E) transaction
Answer: C Diff: 1 Type: MC Page Ref: 7 Skill: Application Objective: 1-2
4) Many critics charge that the North American marketing system causes ________ to be higher than they would be under more "sensible" systems. A) imports B) exports C) prices D) product safety measures E) employee morals
Answer: C Diff: 1 Type: MC Page Ref: 83 Skill: Concept Objective: 3-2
16) Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called? A) product failure B) short-term planning C) planned obsolescence D) nonfunctional warranty E) expressed dissatisfaction
Answer: C Diff: 1 Type: MC Page Ref: 87 Skill: Concept Objective: 3-2
68) Companies must decide what principle they should use as a guide on issues of ethics and social responsibility. Which one of the following is likely to be the least common philosophy to accomplish this end? A) Let the free market decide. B) Let the legal system decide. C) Let history decide. D) Let individual managers decide. E) Let individual companies decide.
Answer: C Diff: 2 Type: MC Page Ref: 104 Skill: Concept Objective: 3-5
30) According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy. A) product B) production C) marketing D) retailing E) societal marketing
Answer: C Diff: 2 Type: MC Page Ref: 12 Skill: Concept Objective: 1-3
79) If baby boomers are predictors of where product and service demand will be, increased demands will most likely be evident in ________ in the coming years. A) university enrollment B) beer and wine C) financial services D) the apparel industry E) the organic food industry
Answer: C Diff: 2 Type: MC Page Ref: 126 Skill: Application Objective: 4-2
35) The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________. A) short-run costs and profits B) short-run ethics C) long-run welfare D) immediate health E) value propositions
Answer: C Diff: 2 Type: MC Page Ref: 13 Skill: Concept Objective: 1-3
57) The authors argue that the ________ is most dramatically changing society's destiny. A) demographic environment B) cultural environment C) technological environment D) competitive environment E) natural environment
Answer: C Diff: 2 Type: MC Page Ref: 137 Skill: Concept Objective: 4-3
37) The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________. A) human welfare B) want satisfaction C) company profits D) short-run wants E) long-term needs
Answer: C Diff: 2 Type: MC Page Ref: 14 Skill: Concept Objective: 1-3
67) Cause-related marketing is ________. A) a response to customer needs B) a primary form of environmental awareness C) a primary form of corporate giving D) a response to corporate political problems E) an attempt to influence customers' core beliefs
Answer: C Diff: 2 Type: MC Page Ref: 140 Skill: Concept Objective: 4-4
82) Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. The key to this goal is to match the customer-perceived performance of his product with ________. A) company-perceived performance B) customer values C) customer expectations D) relationship levels E) company expectations
Answer: C Diff: 2 Type: MC Page Ref: 15 Skill: Application Objective: 1-4
40) Building and maintaining profitable value-laden relationships with satisfied customers of a company is called ________. A) customer lifetime value B) customer perceived value C) customer relationship management D) database marketing E) societal marketing
Answer: C Diff: 2 Type: MC Page Ref: 15 Skill: Concept Objective: 1-4
7) A good MIS balances the information users would ________ against what they really ________ and what is ________. A) need; like; feasible B) like; can afford; needed C) like to have; need; feasible to offer D) need; can afford; useful E) use; have to use; available
Answer: C Diff: 2 Type: MC Page Ref: 159 Skill: Concept Objective: 5-2
77) Your marketing department is attempting to improve strategic decision making, track competitors' actions, and provide early warning of opportunities and threats. To achieve this goal, which of the following would be the best for your department to use? A) internal databases B) external databases C) marketing intelligence D) the Internet E) company reports only
Answer: C Diff: 2 Type: MC Page Ref: 161 Skill: Application Objective: 5-2
79) You are about to test the hypothesis that sales of your product will increase at a very similar rate at either a $5 drop in unit price or a $7 drop in unit price. You are involved in what type of research? A) exploratory B) descriptive C) causal D) focus group E) ethnographic
Answer: C Diff: 2 Type: MC Page Ref: 163 Skill: Application Objective: 5-3
20) Your colleagues are confused about using the marketing research process, as they know that something is wrong but are not sure of the specific causes to investigate. They seem to be having problems with ________, which is often the hardest step to take. A) developing the research plan B) determining a research approach C) defining the problem and research objectives D) selecting a research agency to help E) C and D
Answer: C Diff: 2 Type: MC Page Ref: 163 Skill: Concept Objective: 5-3
28) Which form of data below can usually be obtained more quickly and at a lower cost than the others? A) primary B) survey research C) secondary D) experimental research E) observational research
Answer: C Diff: 2 Type: MC Page Ref: 166 Skill: Concept Objective: 5-3
29) It is most accurate to say that secondary data are ________. A) collected mostly via surveys B) expensive to obtain C) not always usable D) never purchased from outside suppliers E) always necessary to support primary data
Answer: C Diff: 2 Type: MC Page Ref: 166 Skill: Concept Objective: 5-3
41) Which of the following contact methods generally has poor flexibility? A) telephone interviewing B) personal interviewing C) mail questionnaires D) online surveys E) online panels
Answer: C Diff: 2 Type: MC Page Ref: 168-169 Skill: Concept Objective: 5-3
82) Nathan Eguakun owns a regional chain of drug stores. Before expanding nationwide, Nathan is conducting marketing research to determine the best options for opening new stores. He plans to start by collecting secondary data. Which of the following is a source of primary data that Nathan might use? A) Yankelovich's Monitor B) commercial online databases C) online questionnaires D) web search engines E) local chambers of commerce
Answer: C Diff: 2 Type: MC Page Ref: 170-171 Skill: Application Objective: 5-3
86) Tasoula Jeannopoulos has a limited budget for the market research she needs to conduct; however, the sample size for her research is quite large. Which of the following methods of contact would provide Tasoula with the most cost-effective way to reach a large sample of potential customers? A) telephone surveys B) personal interviews C) Internet surveys D) mail surveys E) focus group interviews
Answer: C Diff: 2 Type: MC Page Ref: 170-171 Skill: Application Objective: 5-3
55) Typically, customer information is buried deep in separate databases, plans, and records of many different company functions and departments. To overcome such problems, which of the following should you try? A) customer satisfaction measurement B) more sophisticated software C) customer relationship management D) a marketing information system E) decreased marketing intelligence
Answer: C Diff: 2 Type: MC Page Ref: 178 Skill: Concept Objective: 5-4
45) Which of the following strategies would a company most likely use to increase customer satisfaction? A) decreasing variety of services offered B) lengthening the supply chain C) lowering prices or increasing its services D) "firing" unprofitable customers E) limiting experiences with a brand
Answer: C Diff: 2 Type: MC Page Ref: 18 Skill: Concept Objective: 1-4
65) The availability of which of the following is most problematic in international marketing research? A) primary data B) research specialists C) secondary data D) intelligence limitations E) consumers willing to answer surveys
Answer: C Diff: 2 Type: MC Page Ref: 182 Skill: Concept Objective: 5-5
48) The marketing world is embracing ________ because consumers can wield greater power and control in the marketplace through communication technologies. A) partner relationship management B) supply chain management C) customer-managed relationships D) market segmentation E) target marketing
Answer: C Diff: 2 Type: MC Page Ref: 19 Skill: Concept Objective: 1-4
49) Which of the following is an example of consumer-generated marketing? A) Toyota's presence in online communities B) Nike's Nike Plus running Web site C) H. J. Heinz's use of brand-related consumer videos posted on video-sharing websites D) Neiman Marcus's InCircle Rewards program for its best customers E) The Lexus Covenant aimed at creating customer delight
Answer: C Diff: 2 Type: MC Page Ref: 20 Skill: Concept Objective: 1-4
10) Since Canada is regional, which of the following do marketers consider as a major Canadian subculture? A) Hispanic Canadians B) Carib-African Canadians C) geographically grouped consumers D) Irish Canadians E) Inuit
Answer: C Diff: 2 Type: MC Page Ref: 200 Skill: Concept Objective: 6-1
17) What is one factor used to measure social class? A) job satisfaction B) accent C) income D) number of children in the family E) postal code
Answer: C Diff: 2 Type: MC Page Ref: 201 Skill: Concept Objective: 6-1
79) Rashmi Singh always knows about the trendiest fashions. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for cutting-edge fashion at great deals, and her advice is often followed. Rashmi is an example of a(n) ________. A) membership group B) innovator C) opinion leader D) buzz marketer E) experiential source
Answer: C Diff: 2 Type: MC Page Ref: 202 Skill: Application Objective: 6-1
31) People change the goods and services they buy over time because of the two changing factors of ________. A) belief and attitude B) perception and personality C) age and life-cycle stage D) groups and learning E) family and tradition
Answer: C Diff: 2 Type: MC Page Ref: 206 Skill: Concept Objective: 6-1
81) There is a trend in Canada toward rediscovering the flavour of regional cooking and the use of locally grown ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to recreate local culinary traditions. This change in ________ is one of the reasons the number of farmers' markets in Canada has increased in recent years. A) life-cycle stage B) subculture C) lifestyle D) personality E) life-cycle
Answer: C Diff: 2 Type: MC Page Ref: 208 Skill: Application
85) Juana looked at her September issue of Macleans magazine and did not see anything of interest. After her mother was diagnosed with bipolar disorder, she found the issue extremely interesting because it offered advice on how to help people who are suffering from this problem. The September issue of the magazine became quite interesting to Juana due to ________. A) subliminal messaging B) social factors C) selective attention D) the hierarchy of needs E) unconscious motivations
Answer: C Diff: 2 Type: MC Page Ref: 210 Skill: Application Objective: 6-1
89) Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvantages of his new car as he learned more about other cars available. Bill is experiencing ________. A) postpurchase culture B) selective perception C) cognitive dissonance D) purchase decision E) information evaluation
Answer: C Diff: 2 Type: MC Page Ref: 215 Skill: Application Objective: 6-2
6) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence
Answer: C Diff: 2 Type: MC Page Ref: 239 Skill: Concept Objective: 7-1
5) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) concentrated marketing B) mass marketing C) market targeting D) segmenting E) differentiation
Answer: C Diff: 2 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1
27) If Wealth TV decides to segment its market based on the social class of television viewers, what segmentation approach is Wealth TV using? A) geographic segmentation B) demographic segmentation C) psychographic segmentation D) behavioural segmentation E) situational factors
Answer: C Diff: 2 Type: MC Page Ref: 244 Skill: Concept Objective: 7-2
88) Bud Lite originally launched with the slogan "Tastes great and less filling!" This slogan suggests Bud Lite used which type of segmentation? A) user status B) usage rate C) benefit D) behavioural E) psychographic
Answer: C Diff: 2 Type: MC Page Ref: 247 Skill: Application Objective: 7-2
22) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) user rates B) loyalty segmentation C) multiple segmentation bases D) positioning E) mass marketing
Answer: C Diff: 2 Type: MC Page Ref: 248 Skill: Concept Objective: 7-2
31) When a market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable
Answer: C Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2
43) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions
Answer: C Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
44) Procter & Gamble sells six brands of laundry detergent in North America, each designed for one of six laundry type segments Procter & Gamble has identified. Together, these six brands take four times the market share of Procter & Gamble's nearest competitor. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment
Answer: C Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
45) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; the local market
Answer: C Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
75) The answer to the customer's question, "Why should I buy your brand?" is found in the ________. A) quality image B) customer services C) value proposition D) differentiation E) pricing and promotion structure
Answer: C Diff: 2 Type: MC Page Ref: 264 Skill: Concept Objective: 7-4
5) Product planners consider products and services on three levels. The most basic level is the ________, which addresses the question, "What is the buyer really buying?" A) actual product B) augmented product C) core customer value D) co-branding E) exchange
Answer: C Diff: 2 Type: MC Page Ref: 279 Skill: Concept Objective: 8-1
100) A hickory rocking chair, handmade by an French woodcarver in northern Quebec from locally grown wood, is an example of a(n) ________. A) convenience product B) shopping product C) specialty product D) service E) augmented product
Answer: C Diff: 2 Type: MC Page Ref: 280 Skill: Application Objective: 8-1
16) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and merger C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development
Answer: C Diff: 2 Type: MC Page Ref: 283 Skill: Concept Objective: 8-2
18) The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers. A) competitors, distributors, and employees; new styles B) customers, brands, products; product images C) customers, competitors, and markets; superior value D) product, marketing mix, and marketing strategy; functional features E) product life cycle, legal responsibilities, and social responsibilities; innovations
Answer: C Diff: 2 Type: MC Page Ref: 285-286 Skill: Concept Objective: 8-2
48) The major purpose of test marketing is to provide management with the information needed to make a final decision about ________. A) how to develop a market strategy B) which market to compete in C) whether to launch the new product D) how to compete in the market E) how long to compete in the market
Answer: C Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-2
52) What are the two main focuses of the product life cycle theory? A) distributors and suppliers B) competitors and costs C) sales and profits D) profits and target markets E) target markets and competitors
Answer: C Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-3
53) What are the stages, in correct order, of the product life cycle? A) Introduction, Maturity, Growth, and Decline B) Introduction, Growth, Decline, and Maturity C) Introduction, Growth, Maturity, and Decline D) Growth, Introduction, Maturity, and Decline E) Decline, Introduction, Growth, and Maturity
Answer: C Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-3
61) In which stage of the typical consumer product life cycle do sales growth level off? A) product development B) introduction C) maturity D) growth E) decline
Answer: C Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
66) In which stage of the PLC would promotional expenditures most likely increase as a company attempts to react to increasing competition? A) product development B) introduction C) growth D) maturity E) decline
Answer: C Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
68) Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers? A) introduction B) growth C) maturity D) decline E) phase-in
Answer: C Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
88) An alternative to product line stretching is ________, adding more items within the present range of the line. A) product mixing B) interactive marketing C) product line filling D) co-branding E) service marketing
Answer: C Diff: 2 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
46) Brand managers often describe their brands using the same kinds of adjectives typically used for people. Words like: traditional, youthful, sophisticated, reliable. These managers are trying to build brand ________. A) profit B) extensions C) personality D) evaluations E) word-of-mouth
Answer: C Diff: 2 Type: MC Page Ref: 327 Skill: Concept Objective: 9-2
71) The first four steps of the marketing process focus on ________. A) understanding the market B) delivering customer service C) creating value for customers D) understanding customer demands and needs E) finding value from customers
Answer: C Diff: 2 Type: MC Page Ref: 33 Skill: Concept Objective: 1-5
13) Which of the following is the least desirable quality for a brand name? A) It should suggest something about the product's benefits and qualities. B) It should be easy to pronounce, recognize, and remember. C) The name should be a long word to get attention. D) The name should translate easily into foreign languages. E) It should be distinctive.
Answer: C Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
52) A great ________ absolutely requires a strong, memorable name. A) company B) product C) brand D) promotion E) service
Answer: C Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
15) In the competition between ________ and ________ brands, retailers have the advantages of controlling what products will be stocked, where products will be stocked, what prices will be charged, and which products will be featured in print promotions. A) national; manufacturer's B) store; private C) national; private D) store; licensed E) private; distributor
Answer: C Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
19) In most ________ situations, one company licenses another company's well-known brand to use in combination with its own. A) brand extension B) brand equity C) co-branding D) internal marketing E) line extension
Answer: C Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
20) Which of the following is an advantage offered by co-branding? A) Manufacturers do not have to invest in creating their own brand names. B) Retailers have exclusive products that cannot be purchased from competitors. C) A company can expand its existing brand into a category it otherwise might have difficulty entering alone. D) Advertising, sales, promotion, and marketing must be carefully coordinated. E) Brand equity is stabilized.
Answer: C Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
75) A company might introduce a new brand because ________. A) their sales force recommends it B) their old brand is waning in popularity C) they developed a new product D) the competition is increasing E) they believe more brands is better
Answer: C Diff: 2 Type: MC Page Ref: 333—334 Skill: Concept Objective: 9-3
70) Recently Campbell's soup has developed a wide range of ethnic and religiously focussed soup varieties. This type of modification is known as ________. A) product mixing B) line extensions C) brand extensions D) promotional dilemmas E) customer stratification
Answer: C Diff: 2 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
32) In order to be recognizable brand images and logos need to be ________. A) brightly coloured B) large C) consistent and exact D) detailed E) simple
Answer: C Diff: 2 Type: MC Page Ref: 336 Skill: Concept Objective: 9-3
83) A couple designed their wedding around the Black & Decker's DeWalt brand. This is an extreme example of ________. A) brand servicing B) line extensions C) brand advocacy D) people trying to get a wedding sponsor E) the reality that DeWalt makes darned good power tools.
Answer: C Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-5
3) Consumer perceptions of the product's value set the ________ for prices. A) demand curve B) floor C) ceiling D) variable cost E) image
Answer: C Diff: 2 Type: MC Page Ref: 354 Skill: Concept Objective: 10-1
4) Product costs set a(n) ________ to a product's price. A) demand curve B) experience curve C) floor D) ceiling E) break-even cost
Answer: C Diff: 2 Type: MC Page Ref: 354 Skill: Concept Objective: 10-1
9) Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. A) target returns B) fixed costs C) perceived value D) break-even pricing E) variable costs
Answer: C Diff: 2 Type: MC Page Ref: 356 Skill: Concept Objective: 10-1
19) The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product. This approach to pricing is called ________ pricing. A) value-based B) fixed cost C) cost-plus D) variable E) skimming
Answer: C Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
20) The simplest pricing method is ________. A) value-based pricing B) going-rate and sealed-bid pricing C) cost-plus pricing D) break-even analysis E) target return pricing
Answer: C Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
22) Which of the following is a cost-based approach to pricing? A) value-based pricing B) going-rate pricing C) break-even pricing D) good-value pricing E) EDLP
Answer: C Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
26) ________ that influence pricing decisions include the nature of the market and demand. A) Internal factors B) Elasticity factors C) External factors D) Target factors E) Domestic factors
Answer: C Diff: 2 Type: MC Page Ref: 361 Skill: Concept Objective: 10-2
33) Under ________, the market consists of a few 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) capitalism
Answer: C Diff: 2 Type: MC Page Ref: 365 Skill: Concept Objective: 10-2
37) If demand changes greatly with a small change in price, we say the demand is ________. A) inelastic B) variable C) elastic D) value-based E) fixed
Answer: C Diff: 2 Type: MC Page Ref: 366 Skill: Concept Objective: 10-2
88) Mach 3 razor blades must be used in the Mach 3 razor. Which type of pricing is most likely used? A) product line pricing B) optional-product pricing C) captive-product pricing D) by-product pricing E) allowance pricing
Answer: C Diff: 2 Type: MC Page Ref: 370 Skill: Application Objective: 10-4
50) It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product. A) low; low markups B) high; low markups C) low; high markups D) high; high markups E) moderately; moderate markups
Answer: C Diff: 2 Type: MC Page Ref: 370 Skill: Concept Objective: 10-4
52) When amusement parks and movie theaters charge admission plus fees for food and other attractions, they are following a(n) ________ pricing strategy. A) by-product B) optional-product C) captive-product D) skimming E) penetration
Answer: C Diff: 2 Type: MC Page Ref: 370 Skill: Concept Objective: 10-4
58) The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________. A) time-based pricing B) location pricing C) customer-segment pricing D) revenue management pricing E) generational pricing
Answer: C Diff: 2 Type: MC Page Ref: 372 Skill: Concept Objective: 10-5
95) Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________. A) promotional pricing B) cost-plus pricing C) dynamic pricing D) value pricing E) penetration pricing
Answer: C Diff: 2 Type: MC Page Ref: 375 Skill: Application Objective: 10-5
96) Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most at risk of being accused of ________. A) market skimming B) price-fixing C) predatory pricing D) deceptive pricing E) price confusion
Answer: C Diff: 2 Type: MC Page Ref: 379 Skill: Application Objective: 10-7
59) ________ buy mostly from producers and sell to retailers and industrial consumers. A) Independents B) Factory outlets C) Wholesalers D) Discount stores E) Megaretailers
Answer: C Diff: 2 Type: MC Page Ref: 396 Skill: Concept Objective: 11-2
) Which of the following is true of a direct marketing channel? A) It increases the number of channel transactions. B) It enables retailers to reach many customers. C) It does not use any intermediaries. D) It gives limited distribution control to producers. E) It creates a complex distribution channel.
Answer: C Diff: 2 Type: MC Page Ref: 398 Skill: Concept Objective: 11-3
22) A(n) ________ marketing system is a marketing system in which independent firms at different levels of production and distribution join together through binding agreements. A) corporate vertical B) horizontal C) contractual vertical D) administered vertical E) direct
Answer: C Diff: 2 Type: MC Page Ref: 401 Skill: Concept Objective: 11-3
23) Which type of channel arrangement does a franchise organization most likely follow? A) administered vertical marketing system B) horizontal marketing system C) contractual vertical marketing system D) corporate vertical marketing system E) direct marketing system
Answer: C Diff: 2 Type: MC Page Ref: 401 Skill: Concept Objective: 11-3
17) Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars—one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict? A) a conflict between Jupiter Steel and Greystone Motors B) a conflict between Jupiter Steel and Greystone dealers C) a conflict between two Greystone Motors car dealerships D) a conflict between a Greystone Motors car dealership and a racing team E) a conflict between Greystone Motors and its car dealerships
Answer: C Diff: 2 Type: MC Page Ref: 403 Skill: Concept Objective: 11-3
34) ________ distribution is a product distribution strategy that involves stocking a product in as many outlets as possible. A) Selective B) Exclusive C) Intensive D) Exponential E) Comprehensive
Answer: C Diff: 2 Type: MC Page Ref: 407 Skill: Concept Objective: 11-4
59) At Neiman Marcus, a first-class department store, customers shop for specialty products and have come to expect assistance in every phase of the shopping process. Neiman Marcus is a ________. A) self-service retailer B) limited-service retailer C) full-service retailer D) specialty store E) power centre
Answer: C Diff: 2 Type: MC Page Ref: 434 Skill: Application Objective: 12-1
12) A convenience store ________. A) markets to segments comprised mostly of white-collar workers B) stocks narrow product lines that have wide, deep assortments C) carries a limited line of high-turnover goods for consumer self-service D) involves high operation costs due to full-service customer assistance E) is a multi-channel food and discount retailer that targets niche markets
Answer: C Diff: 2 Type: MC Page Ref: 434 Skill: Concept Objective: 12-1
60) GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n)________. A) department store B) convenience store C) specialty store D) category killer E) off-price retailer
Answer: C Diff: 2 Type: MC Page Ref: 435 Skill: Application Objective: 12-1
4) Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices? A) self-service stores B) convenience stores C) full-service stores D) discount stores E) off-price stores
Answer: C Diff: 2 Type: MC Page Ref: 435 Skill: Concept Objective: 12-1
5) Flax is a chain of stores that carries several product lines including clothing, home furnishings, and household appliances. Each line is operated as a separate department, and employees are available to assist and advise customers in every phase of the shopping process. Flax is most likely a ________. A) self-service retailer B) category killer C) full-service retailer D) supermarket E) pop-up store
Answer: C Diff: 2 Type: MC Page Ref: 435 Skill: Concept Objective: 12-1
6) Customers at Carat, a premium jewellery store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewellery are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________. A) self-service retailer B) off-price retailer C) full-service retailer D) supermarket E) convenience store
Answer: C Diff: 2 Type: MC Page Ref: 435 Skill: Concept Objective: 12-1
8) GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n) ________. A) department store B) supermarket C) specialty store D) discount store E) off-price retailer
Answer: C Diff: 2 Type: MC Page Ref: 435 Skill: Concept Objective: 12-1
15) Pawz is a larger retailer that specializes in pet products and services such as pet food, accessories, grooming, toys, and medical treatment. Pawz also has animals available for adoption at all of its many stores located across the nation. Pawz is most likely an example of a ________. A) convenience store B) pop-up store C) category killer D) lifestyle centre E) supermarket
Answer: C Diff: 2 Type: MC Page Ref: 436 Skill: Concept Objective: 12-1
64) McDonald's, Subway, and Pizza Hut are all examples of a ________. A) voluntary chain B) retailer cooperative C) franchise D) full-service retailer E) power centre
Answer: C Diff: 2 Type: MC Page Ref: 437 Skill: Application Objective: 12-1
26) Which contractual system is distinguished by the fact that it is normally based on some unique product or service? A) voluntary chain B) retailer cooperative C) franchise D) corporate chain E) warehouse club
Answer: C Diff: 2 Type: MC Page Ref: 437 Skill: Concept Objective: 12-1
27) McPherson's, an ice cream retailer, recently entered into an agreement that allows independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. Which type of contractual retail association is described in the above example? A) corporate chain B) voluntary chain C) franchise organization D) independent retailer E) retailer cooperative
Answer: C Diff: 2 Type: MC Page Ref: 437 Skill: Concept Objective: 12-1
29) What is most likely the first major marketing decision that a retailer must take? A) positioning B) targeting C) segmentation D) differentiation E) promoting
Answer: C Diff: 2 Type: MC Page Ref: 438-439 Skill: Concept Objective: 12-2
31) The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewellery, kitchenware, and home furnishings. Toby's typically charge higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) franchise retailing
Answer: C Diff: 2 Type: MC Page Ref: 442 Skill: Concept Objective: 12-2
32) Barry's is a chain of retail stores that stocks a large variety of goods and practices high-low pricing. This means that Barry's is likely to ________. A) have low volume and low markups B) charge low prices constantly C) offer numerous sales or discounts D) compete on the basis of price rather than product or service quality E) use predatory pricing to eliminate competition
Answer: C Diff: 2 Type: MC Page Ref: 442 Skill: Concept Objective: 12-2
45) Most retailers believe that ________. A) the Internet is a fad B) social media is unreliable C) online retail offers an additional channel to increase reach and sales D) online retail is an additional channel to provide information but not sales E) the cost of doing business on the Internet is not justified by sales
Answer: C Diff: 2 Type: MC Page Ref: 447 Skill: Concept Objective: 12-3
3) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. A) sales promotion B) direct marketing C) advertising D) personal selling E) public relations
Answer: C Diff: 2 Type: MC Page Ref: 468 Skill: Concept Objective: 13-1
14) Which of the following best explains why companies often fail to integrate their various communications to consumers? A) Historically, consumers have been able to distinguish between message sources. B) Public relations is usually given priority over advertising. C) Communications often come from different parts of the company. D) Personal selling and sales promotion are in direct conflict. E) Companies have failed to understand the concept of brand contact.
Answer: C Diff: 2 Type: MC Page Ref: 472 Skill: Concept Objective: 13-2
19) Advertising has many advantages. What is one of them? A) It is impersonal. B) It can be very costly. C) It reaches many people across geographic locations. D) It carries on one-way communication with the audience. E) It does not make audiences feel the need to respond.
Answer: C Diff: 2 Type: MC Page Ref: 474 Skill: Concept Objective: 13-2
81) Mariah Goldberg, a marketing manager for a manufacturer of children's toys, is looking for ways to reach potential customers who typically avoid salespeople and advertisements. Which of the following would be the most economical promotional tool for Mariah to use? A) direct marketing B) sales promotions C) public relations D) brand contacts E) personal selling
Answer: C Diff: 2 Type: MC Page Ref: 475 Skill: Application Objective: 13-2
82) Clean and Clear, a large producer of all-natural hair care and beauty products, is most likely to use which of the promotion mix strategies to gain increased shelf space in stores and to gain increased customer sales? A) push B) pull C) push and pull D) pulse E) continuity
Answer: C Diff: 2 Type: MC Page Ref: 476 Skill: Application Objective: 13-2
89) When Taco Bell uses a Chihuahua, a small dog, to represent its product, which type of execution style is being used? A) mood or image B) fantasy C) personality symbol D) technical expertise E) musical
Answer: C Diff: 2 Type: MC Page Ref: 485 Skill: Application Objective: 13-3
54) ________ is the message execution style that depicts one or more typical people using the product in a normal setting. A) Lifestyle B) Fantasy C) Slice of life D) Personality symbol E) Testimonial evidence
Answer: C Diff: 2 Type: MC Page Ref: 485 Skill: Concept Objective: 13-3
61) When selecting media, the advertiser must decide on the desired qualitative value, known as the ________, of a message through a given medium. A) reach B) media engagement C) media impact D) exposure costs E) frequency
Answer: C Diff: 2 Type: MC Page Ref: 487 Skill: Concept Objective: 13-3
16) Paul Pierce is busy working with other managers evaluating the products and businesses making up their company. Paul is engaged in ________. A) defining the company's mission statement B) preparing a business portfolio C) portfolio analysis D) marketing planning E) marketing control
Answer: C Diff: 2 Type: MC Page Ref: 49 Skill: Concept Objective: 2-2
19) ________ can be a company division, a product line within a division, or sometimes a single product or brand. A) A market B) The BCG C) An SBU D) A PLC E) A value delivery network
Answer: C Diff: 2 Type: MC Page Ref: 49 Skill: Concept Objective: 2-2
22) Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________. A) market share; strength of the SBU's position B) market or industry growth rate; market or industry attractiveness C) market or industry attractiveness; strength of the SBU's position in that market or industry D) market growth rate; profits E) market penetration; market development
Answer: C Diff: 2 Type: MC Page Ref: 49-50 Skill: Concept Objective: 2-2
25) The BCG growth-share matrix classifies four types of SBUs. They are ________. A) product, price, promotion, and placement B) sales, market share, price, and promotion C) stars, cash cows, question marks, and dogs D) planning, organizing, leading, and controlling E) market penetration, market development, product development, and diversification
Answer: C Diff: 2 Type: MC Page Ref: 50 Skill: Concept Objective: 2-2
28) When dealing with a ________, managers must decide whether to invest in it in an attempt to build it into a star or cash cow or whether to phase it out. A) star B) dog C) question mark D) cash cow E) cat
Answer: C Diff: 2 Type: MC Page Ref: 50 Skill: Concept Objective: 2-2
29) In the BCG matrix, income from ________ can be used to help finance the company's question marks and stars. A) dogs B) SBUs C) cash cows D) sales revenue E) overseas operations
Answer: C Diff: 2 Type: MC Page Ref: 50 Skill: Concept Objective: 2-2
7) A company could benefit from appointing a high-level marketing executive because such a person could perform what duty/duties? A) oversee sales B) oversee marketing C) oversee both marketing and sales D) represent customers to the company E) represent the company to customers
Answer: C Diff: 2 Type: MC Page Ref: 512 Skill: Concept Objective: 14-1
28) A salesperson's compensation plan is typically made up of several elements—a fixed amount, ________, expenses, and fringe benefits. A) a base salary B) a pension plan C) a variable amount D) nonmonetary rewards E) recognition
Answer: C Diff: 2 Type: MC Page Ref: 518 Skill: Concept Objective: 14-2
29) Which of the following describes two of the four basic types of compensation plans? A) commission plus bonus, straight commission B) straight salary, commission plus bonus C) salary and commission, straight salary D) commission plus bonus, sliding scale E) salary plus bonus, sliding scale
Answer: C Diff: 2 Type: MC Page Ref: 518 Skill: Concept Objective: 14-2
77) The Bank of Ontario bought Pershing, an off-shore investment firm with operations in India, from Credit Suisse First Boston. The Bank of Ontario is pursuing a ________. A) product development strategy B) downsizing strategy C) diversification strategy D) market penetration strategy E) product adaptation
Answer: C Diff: 2 Type: MC Page Ref: 52 Skill: Application Objective: 2-2
64) Pressure to increase short-term sales, less differentiated brands, declining advertising efficiency, and increasingly deal-oriented customers are all factors contributing to the ________. A) growth of personal selling B) decline of personal selling C) growth of sales promotion D) decline of sales promotion E) decline of customer relationships
Answer: C Diff: 2 Type: MC Page Ref: 530 Skill: Concept Objective: 14-4
71) ________ offer consumers savings off the regular price of a product, with the reduced price marked by the producer directly on the label or package. A) Premiums B) Patronage rewards C) Price packs D) Samples E) Rebates
Answer: C Diff: 2 Type: MC Page Ref: 532 Skill: Concept Objective: 14-4
73) A(n) ________ has the advertiser's name on it and is given as a gift to consumers. A) premium B) POP promotion C) advertising specialty D) price pack E) sample
Answer: C Diff: 2 Type: MC Page Ref: 532 Skill: Concept Objective: 14-4
43) To address concern with spam, most legitimate marketers practise ________. A) online forums B) social networks C) permission-based email marketing D) corporate blogging E) mobile marketing
Answer: C Diff: 2 Type: MC Page Ref: 556 Skill: Concept Objective: 15-3
59) Which of the following statements is not true of viral marketing? A) It can involve creating a website. B) It needs to be infectious so customers will seek it out. C) It can be very expensive. D) It will be likely viewed or read by friends of the sender. E) It can be a well-made regular ad helped along by targeted seeding.
Answer: C Diff: 2 Type: MC Page Ref: 557 Skill: Concept Objective: 15-3
46) Which of the following is a potential drawback of advertising on or attempting to influence content on a blog? 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) Blogs are losing popularity. E) Blogs do not provide the kind of personalized medium that today's marketers want.
Answer: C Diff: 2 Type: MC Page Ref: 559 Skill: Concept Objective: 15-3
5) The ________ steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships. A) first two B) first three C) first four D) last three E) last four
Answer: C Diff: 2 Type: MC Page Ref: 7 Skill: Concept Objective: 1-2
74) A heavily promoted brand of flu medicine sells for much more than a virtually identical store-branded product. Critics would likely charge that promotion for the branded flu medicine adds only ________ to the product rather than functional value. A) consistency B) strength C) psychological value D) quality E) informational value
Answer: C Diff: 2 Type: MC Page Ref: 84 Skill: Application Objective: 3-2
8) Critics point out that in the drug industry, where a pill costing five cents to make may cost the consumer $2 to buy. This is an example of which of the following? A) deceptive advertising B) redlining C) excessive markups D) high-pressure selling E) shoddy products
Answer: C Diff: 2 Type: MC Page Ref: 84 Skill: Concept Objective: 3-2
9) Deceptive marketing practices fall into three groups: deceptive ________, deceptive ________, and deceptive ________. A) product; pricing; promotion B) pricing; promotion; placement C) pricing; promotion; packaging D) packaging; product; promotion E) product; packaging; placement
Answer: C Diff: 2 Type: MC Page Ref: 85 Skill: Concept Objective: 3-2
23) Marketers are most effective when they appeal to ________ rather than when they ________. A) exciting new inventions; use old ones B) teenagers; target older people C) existing wants; attempt to create new ones D) emotions; appeal to actual needs E) the mass market; appeal to market segments
Answer: C Diff: 2 Type: MC Page Ref: 89 Skill: Concept Objective: 3-2
25) The overselling of private goods results in ________, such as cars causing traffic jams, air pollution, injuries, and deaths. A) cultural pollution B) misdirected funding C) social costs D) materialism E) opportunity costs
Answer: C Diff: 2 Type: MC Page Ref: 89 Skill: Concept Objective: 3-2
11) When marketers set low expectations for a market offering, they are most likely to run the risk of which of the following? A) disappointing loyal buyers B) decreasing buyers satisfaction C) failing to attract enough buyers D) failing to understand their buyers' needs E) incorrectly identifying a target market
Answer: C Diff: 2 Type: MC Page Ref: 9 Skill: Concept Objective: 1-2
13) In addition to attracting new customers and creating transactions, the goal of marketing is to ________ customers and grow the company's business. A) reward loyal B) sell more to C) build relationships with D) recognize loyal E) educate new
Answer: C Diff: 2 Type: MC Page Ref: 9 Skill: Concept Objective: 1-2
43) FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs of using the service, they are acting upon ________. A) loyalty B) relationship marketing C) customer-perceived value D) social relationships E) a societal marketing campaign
Answer: C Diff: 3 Type: MC Page Ref: 15 Skill: Concept Objective: 1-4
83) Walmart sends a trained observer to watch and interact with customers as they shop in a Walmart store. This is an example of ________. A) secondary research B) survey research C) ethnographic research D) experimental research E) descriptive research
Answer: C Diff: 3 Type: MC Page Ref: 167 Skill: Application Objective: 5-3
39) ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has the following advantage. A) flexibility B) speed of data collection C) control of interviewer effects D) response rate E) control of subject
Answer: C Diff: 3 Type: MC Page Ref: 168-169 Skill: Concept Objective: 5-3
66) Relative advantage, compatibility, complexity, divisibility, and communicability are all examples of ________. A) alternative evaluation B) dissonance-reducing buying behavior C) product characteristics that influence rate of adoption D) individual differences in innovativeness E) postpurchase behaviour
Answer: C Diff: 3 Type: MC Page Ref: 217 Skill: Concept Objective: 6-3
96) John Herr's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments. This approach to cost reduction likely took place in the ________ stage of the business buying process. A) problem recognition B) general need description C) product specification D) supplier search E) proposal solicitation
Answer: C Diff: 3 Type: MC Page Ref: 224 Skill: Application Objective: 6-5
8) With ________ pricing, price is set to match consumers' perceptions of product value. A) variable cost B) cost-plus C) cost-based D) value-based E) everyday low
Answer: D Diff: 2 Type: MC Page Ref: 355 Skill: Concept Objective: 10-1
71) In a monopolistic competitive market, a company might decide to ________ if only one competitor raises its prices. A) reduce its production costs B) reduce its marketing costs C) maintain its current price and profit margin D) increase its marketing budget to raise the perceived value of its product E) increase its production costs to improve the quality of the product
Answer: C Diff: 3 Type: MC Page Ref: 377 Skill: Concept Objective: 10-6
75) Price discrimination is legal under which of the following conditions? A) when a manufacturer and reseller have agreed upon a specified retail price for a product B) when a manufacturer sells to retailers in different markets C) if a seller can prove its costs per unit are different when selling to different retailers D) if a seller advertises prices that are not actually available to consumers E) if a seller has not communicated with competitors before announcing prices
Answer: C Diff: 3 Type: MC Page Ref: 379 Skill: Concept Objective: 10-7
53) Which of the following are the three characteristics an advertising appeal should have? A) engaging, informative, and stylish B) trendy, compelling, and appealing C) meaningful, believable, and distinctive D) unique, emotional, and entertaining E) humorous, memorable, and interesting
Answer: C Diff: 3 Type: MC Page Ref: 484 Skill: Concept Objective: 13-3
76) The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. In order to increase market share, managers may decide to ________. A) hold the pharmaceuticals division's share B) implement a harvest strategy C) use money from a cash cow to promote the pharmaceuticals division D) divest the SBU E) diversify the pharmaceutical division
Answer: C Diff: 3 Type: MC Page Ref: 50 - 51 Skill: Application Objective: 2-2
5) Which one of the following do members of a sales force typically represent? A) They represent the company to competitors. B) They represent the company to investors. C) They represent the customer to the company. D) They represent the company to industry. E) They represent the goods they sell.
Answer: C Diff: 3 Type: MC Page Ref: 511 Skill: Concept Objective: 14-1
87) The sales force at Messimer Computing recently began telemarketing and online selling. How will telemarketing and Web selling most likely benefit Messimer Computing? A) The inside sales force of Messimer will receive better compensation than the outside sales force. B) Messimer sales reps will need to spend less face-to-face time with large, high-value customers. C) Messimer sales reps will be able to service hard-to-reach customers more effectively. D) Messimer sales reps will be able to work from home offices more regularly. E) The outside sales force of Messimer will be freed up to work more with the marketing department.
Answer: C Diff: 3 Type: MC Page Ref: 514 Skill: Application Objective: 14-2
89) Sales management at Noble Printing is planning a training program to improve the performance of its sales force. Which of the following should definitely be included in the training sessions? A) tests to identify the personality traits of members of the sales force B) tests to measure the analytic and organizational skills of the sales force C) information about the marketing strategies used by other printing companies D) time-and-duty analysis for each salesperson E) instructions on completing expense reports
Answer: C Diff: 3 Type: MC Page Ref: 517 Skill: Application Objective: 14-2
37) If Under Armour, the successful maker of moisture-wicking shirts and shorts, considered introducing a line of Under Armour fitness equipment, the company would be considering ________. A) marketing controls B) market development C) diversification D) market penetration E) product adaptation
Answer: C Diff: 3 Type: MC Page Ref: 52-53 Skill: Concept Objective: 2-2
74) Manufacturers direct more sales promotion dollars toward ________ than to ________. A) consumers; retailers B) customers; wholesalers C) retailers and wholesalers; consumers D) mature consumers; teenagers E) retailers; wholesalers
Answer: C Diff: 3 Type: MC Page Ref: 533 Skill: Concept Objective: 14-4
61) Which of the following is a primary disadvantage of viral marketing? A) The costs of viral marketing are too high for most companies. B) The brand associated with the viral message is usually forgotten. C) Marketers have little control over who receives the 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.
Answer: C Diff: 3 Type: MC Page Ref: 558 Skill: Concept Objective: 15-3
19) Selecting which segments of a population of customers to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing E) choosing a value proposition
Answer: D Diff: 1 Type: MC Page Ref: 10 Skill: Concept Objective: 1-3
20) Dollarama stores focus on serving buyers who have relatively modest means. This is an example of ________. A) convenience B) value pricing C) market segmentation D) target marketing E) value packing
Answer: D Diff: 1 Type: MC Page Ref: 10 Skill: Concept Objective: 1-3
21) ________ is the set of benefits or values a company promises to deliver to its consumers to satisfy their needs. A) A money-back guarantee B) Low pricing C) Good customer service D) A value proposition E) An attribute
Answer: D Diff: 1 Type: MC Page Ref: 11 Skill: Concept Objective: 1-3
28) The ________ concept calls for aggressive selling and promotion effort. A) marketing B) production C) product D) selling E) societal marketing
Answer: D Diff: 1 Type: MC Page Ref: 12 Skill: Concept Objective: 1-3
76) LandPort Transportation and Omega Warehousing move and store the products your company sells. The two businesses are examples of ________. A) resellers B) marketing services agencies C) marketing intermediaries D) physical distribution firms E) geographic segments
Answer: D Diff: 1 Type: MC Page Ref: 121 Skill: Application Objective: 4-1
78) ING, an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The ING logo and name appear throughout the race course. ING most likely sponsors the event in order to appeal to which type of public? A) financial B) local C) government D) general E) internal
Answer: D Diff: 1 Type: MC Page Ref: 123 Skill: Application Objective: 4-1
82) Wholesome Soups, a maker of organic soups, is starting a new marketing campaign emphasizing the ease of preparing and eating Wholesome Soups on the go. Print, television, and Internet ads feature college-aged students enjoying Wholesome Soups in between classes and during study breaks. Wholesome Soups' new marketing campaign is most likely aimed at which of the following? A) Baby boomers B) Seniors C) Gen Xers D) Millennials E) the SOHO market
Answer: D Diff: 1 Type: MC Page Ref: 126 Skill: Application Objective: 4-2
36) The ________ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer's and society's well being. A) marketing B) selling C) product D) societal marketing E) equity
Answer: D Diff: 1 Type: MC Page Ref: 13 Skill: Concept Objective: 1-3
50) The ________ environment consists of factors that affect consumer purchasing power and spending patterns. A) geological B) political C) technological D) economic E) natural
Answer: D Diff: 1 Type: MC Page Ref: 134 Skill: Concept Objective: 4-2
76) Diana Dion is currently researching electronic data sources from within her company to make marketing decisions. Diana is making use of ________ databases. A) external B) current C) historical D) internal E) foreign
Answer: D Diff: 1 Type: MC Page Ref: 160 Skill: Application Objective: 5-2
10) Marketing information from which type of database usually can be accessed more quickly and cheaply than other information sources? A) external B) LexisNexis C) DataStar D) internal E) ProQuest
Answer: D Diff: 1 Type: MC Page Ref: 160 Skill: Concept Objective: 5-2
37) A poor method for conducting survey research is ________. A) the Web B) the mail C) the telephone D) observation E) person-to-person interactions
Answer: D Diff: 1 Type: MC Page Ref: 168 Skill: Concept Objective: 5-3
74) The first step of the business buying process is ________. A) general need description B) supplier search C) proposal solicitation D) problem recognition E) order-routine specification
Answer: D Diff: 1 Type: MC Page Ref: 224 Skill: Concept Objective: 6-5
84) When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer-driven marketing strategy? A) market segmenting B) mass marketing C) differentiation D) targeting E) positioning
Answer: D Diff: 1 Type: MC Page Ref: 240 Skill: Application Objective: 7-1
4) Which of the following best describes differentiation? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's brain that the brand or company should occupy
Answer: D Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1
10) Pendergraff Pet Supplies divides the pet market according to the owners' ethnicity, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A) geographic B) behavioural C) lifestyle D) demographic E) psychographic
Answer: D Diff: 1 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2
64) Which of the following trends is part of the changing marketing landscape? A) decline in not-for-profit marketing B) a halt in globalization C) growing conspicuous consumption D) consumer desire for more sustainable marketing practices E) decline in digital/online marketing
Answer: D Diff: 1 Type: MC Page Ref: 26-32 Skill: Concept Objective: 1-5
1) A ________ is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. A) private brand B) service variability C) service D) product E) service encounter
Answer: D Diff: 1 Type: MC Page Ref: 278 Skill: Concept Objective: 8-1
59) ________ is the product life cycle period when sales fall off and profits drop. A) Introduction B) Growth C) Maturity D) Decline E) Development
Answer: D Diff: 1 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
23) A consumer just bought a new smartphone game called "Hippy Monster" from his favourite app retailer. Which of the following is unrelated to his direct experience with the brand? A) a friend telling him about Hippy Monster B) downloading the game C) buying the game from the app store D) the creation of the programming team to create Hippy Monster E) playing the game
Answer: D Diff: 1 Type: MC Page Ref: 336 Skill: Concept Objective: 9-4
63) What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) referent pricing D) promotional pricing E) dynamic pricing
Answer: D Diff: 1 Type: MC Page Ref: 373 Skill: Concept Objective: 10-5
5) Which of the following is the final step in the strategic planning process? A) defining the company mission B) setting company objectives and goals C) designing the business portfolio D) planning marketing and other functional strategies E) identifying the company's culture
Answer: D Diff: 1 Type: MC Page Ref: 46 Skill: Concept Objective: 2-1
17) The collection of businesses and products that make up a company is called its ________. A) strategic business unit B) mission statement C) strategic plan D) business portfolio E) operational factors
Answer: D Diff: 1 Type: MC Page Ref: 49 Skill: Concept Objective: 2-2
21) According to the text the best known product portfolio planning method was developed by ________. A) Philip Kotler B) Harvard University C) the SRI Consulting Firm D) the Boston Consulting Group E) James P. Hess
Answer: D Diff: 1 Type: MC Page Ref: 50 Skill: Concept Objective: 2-2
3) A(n) ________ serves as a critical link between a company and its customers by performing one or more of the following: prospecting, communicating, selling, servicing, information gathering, and relationship building. A) manager B) executive C) support person D) salesperson E) consultant
Answer: D Diff: 1 Type: MC Page Ref: 510 Skill: Concept Objective: 14-1
12) Which sales force structure would a company that sells a wide variety of products to many types of customers over a broad geographic area consider using? A) territorial B) product C) customer D) complex E) team
Answer: D Diff: 1 Type: MC Page Ref: 513 Skill: Concept Objective: 14-2
36) The latest development in sales force automation is ________. A) the cell phone B) the laptop computer C) the video game D) the merging of sales processes with social networking E) Canada Post
Answer: D Diff: 1 Type: MC Page Ref: 520-524 Skill: Concept Objective: 14-2
62) ________ consists of short-term incentives to encourage the purchase or sale of a product or service. This offers reasons to buy it now. A) A patronage reward B) A segmented promotion C) Advertising D) Sales promotion E) Publicity
Answer: D Diff: 1 Type: MC Page Ref: 529 Skill: Concept Objective: 14-4
38) ________ entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy. A) Market segmentation B) BCG C) Product line extension D) Downsizing E) Market redesign
Answer: D Diff: 1 Type: MC Page Ref: 53 Skill: Concept Objective: 2-2
14) Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular address? A) kiosk marketing B) digital direct marketing C) catalog marketing D) direct-mail marketing E) telephone marketing
Answer: D Diff: 1 Type: MC Page Ref: 566 Skill: Concept Objective: 15-4
15) Which of the following statements is not characteristic of direct mail marketing? A) a highly selective database of customer information is needed B) mail sent out which includes samples and DVDs C) well-suited for one-to-one communication D) impersonal and inflexible E) permits high levels of targeting a particular audience
Answer: D Diff: 1 Type: MC Page Ref: 566 Skill: Concept Objective: 15-4
44) ________ is the marketing logic by which a company hopes to create customer value and achieve profitable customer relationships. A) Price B) Being a low-cost operator C) A consistent product mix D) Marketing strategy E) Implementing a differentiation strategy
Answer: D Diff: 1 Type: MC Page Ref: 57 Skill: Concept Objective: 2-4
6) According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy. A) determine how to deliver superior value B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct key components of a marketing program
Answer: D Diff: 1 Type: MC Page Ref: 7 Skill: Concept Objective: 1-2
10) ________ refers to sellers that pay more attention to their own products than to the benefits and experiences produced by these products. A) Selling myopia B) Marketing management C) Value proposition D) Marketing myopia E) The product concept
Answer: D Diff: 1 Type: MC Page Ref: 8 Skill: Concept Objective: 1-2
3) According to the definition of a brand presented in your text, all of the following would be an example of a brand except ________. A) the name Coca-Cola B) the golden arches of McDonald's restaurants C) Tony the Tiger of Frosted Flakes cereal D) the sparkles in Moet et Chandon champagne E) the name and font of IBM
Answer: D Diff: 2 Type: MC Page Ref: -323 Skill: Concept Objective: 9-1
26) The product concept says that a company should ________. A) improve marketing of its best products B) market only those products with high customer appeal C) focus on the target market and make products that meet those customers' demands D) devote its energy to making continuous product improvements E) make promoting products the top priority
Answer: D Diff: 2 Type: MC Page Ref: 11 Skill: Concept Objective: 1-3
27) "Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept. A) production B) marketing C) selling D) product E) target marketing
Answer: D Diff: 2 Type: MC Page Ref: 12 Skill: Concept Objective: 1-3
7) Which of the following factors is part of the microenvironment? A) natural environment B) cultural shifts C) technological trends D) competitors E) political trends
Answer: D Diff: 2 Type: MC Page Ref: 120 Skill: Concept Objective: 4-1
13) A company's marketing environment includes various ________ that are made up of groups that have an actual or potential interest in, or impact on, an organization's ability to achieve its objectives. A) teams B) audiences C) markets D) publics E) intermediaries
Answer: D Diff: 2 Type: MC Page Ref: 122 Skill: Concept Objective: 4-1
16) Consumer organizations and environmental groups are examples of ________ publics. A) general B) local C) government D) citizen-action E) media
Answer: D Diff: 2 Type: MC Page Ref: 122 Skill: Concept Objective: 4-1
18) Percy Original caters to a market of individuals and households that buy goods and services for personal consumption. What type of market does Percy Original cater to? A) business B) reseller C) government D) consumer E) marketing intermediary
Answer: D Diff: 2 Type: MC Page Ref: 123 Skill: Application Objective: 4-1
27) Which of the following descriptions most accurately characterizes the baby boomers? A) They are aging and slowing down. B) They are a shrinking market for new housing and home remodeling. C) They are past their peak earning and spending years. D) They account for about 1/3 of the population and hold 50% of Canada's wealth. E) They were largely unaffected by the recent recession.
Answer: D Diff: 2 Type: MC Page Ref: 126 Skill: Concept Objective: 4-2
35) Which demographic group is characterized by a total fluency and comfort with computer, digital, and Internet technology? A) Generation X B) Millennials C) Seniors D) Generation Z E) Baby boomers
Answer: D Diff: 2 Type: MC Page Ref: 128 Skill: Concept Objective: 4-2
78) Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy. A) marketing concept B) product concept C) production concept D) societal marketing concept E) selling concept
Answer: D Diff: 2 Type: MC Page Ref: 13 Skill: Application Objective: 1-3
33) Customer-driven marketing is most likely to work well when ________ and when customers ________. A) a clear need exists; are difficult to identify B) customers do not know what they want; have limited budgets C) there are few competitors; are concerned about their long-run welfare D) a clear need exists; know what they want E) a want exists; cannot afford it
Answer: D Diff: 2 Type: MC Page Ref: 13 Skill: Concept Objective: 1-3
58) Tech trends should be tracked by marketers because technology can represent ________. A) opportunities for the organization. B) threats to the organization. C) risks for the organization. D) both threats and opportunities for the organization. E) regulatory headaches.
Answer: D Diff: 2 Type: MC Page Ref: 137 Skill: Concept Objective: 4-3
62) A major legislation created to regulate marketing activities in Canada is called the ________. A) Marketer's Act B) Consumer Protection Act C) Commercial Product Act D) Competition Act E) Business Fairness Promotion Act
Answer: D Diff: 2 Type: MC Page Ref: 139 Skill: Concept Objective: 4-4
5) The real value of a company's marketing research and information system lies in the ________. A) amount of data it generates B) variety of contact methods it uses C) efficiency with which it completes studies D) quality of customer insights it provides E) marketing information system it follows
Answer: D Diff: 2 Type: MC Page Ref: 158 Skill: Concept Objective: 5-1
19) Which of the following is false about marketing research? A) Marketing research provides marketers insight into customers' motivations. B) Marketing research helps marketers identify customer purchase behaviours and satisfaction. C) Marketing research helps marketers assess product market potential. D) Marketing research provides immediate revenue for the firm. E) Marketing research enables marketers see the effectiveness of their promotion activities.
Answer: D Diff: 2 Type: MC Page Ref: 163 Skill: Concept Objective: 5-3
21) Which of the steps in the marketing research process includes the following: defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings? A) developing the research budget B) choosing the research agency C) choosing the research method D) developing the research plan E) comparing and contrasting primary and secondary data
Answer: D Diff: 2 Type: MC Page Ref: 164 Skill: Concept Objective: 5-3
30) Your assistant wants to use secondary data exclusively for the current marketing research project. Which of the following statements is false regarding secondary data? A) It may not exist. B) It may not be relevant. C) It may not be impartial. D) It is generally more expensive to obtain than primary data. E) It may not be current.
Answer: D Diff: 2 Type: MC Page Ref: 166 Skill: Concept Objective: 5-3
84) Wendy's came out with a new hamburger and released it in two different cities with two different price points. Marketers at Wendy's then analyzed the different levels of purchase made at the two different price points, planning on using the information to set a nationwide price for the new offering. This is an example of ________. A) observational research B) survey research C) ethnographic research D) experimental research E) descriptive research
Answer: D Diff: 2 Type: MC Page Ref: 168 Skill: Application Objective: 5-3
35) Survey research, though used to obtain many kinds of information in a variety of situations, is the approach best suited for gathering ________ information. A) interpersonal B) causal C) attitudinal D) descriptive E) exploratory
Answer: D Diff: 2 Type: MC Page Ref: 168 Skill: Concept Objective: 5-3
40) Which of the following is one of the best advantages of conducting research using telephone interviews? A) control of sample B) flexibility C) speed of data collection D) response rate E) cost
Answer: D Diff: 2 Type: MC Page Ref: 168-169 Skill: Concept Objective: 5-3
45) Which of the following has the highest rating for speed of data collection and compilation? A) open-ended questionnaires B) personal interviews C) mail surveys D) online surveys E) ethnographic research
Answer: D Diff: 2 Type: MC Page Ref: 170 Skill: Concept Objective: 5-3
56) Which of the following is true about customer relationship management (CRM)? A) It relies on information produced through primary research. B) Its aim is to maximize profit margins. C) Its aim is to increase the efficiency of each customer touchpoint. D) Its aim is to maximize customer loyalty. E) Most companies who first implemented CRM have greatly benefited from the results.
Answer: D Diff: 2 Type: MC Page Ref: 178 Skill: Concept Objective: 5-4
42) Maslow's theory is that ________ can be arranged in a hierarchy. A) stimuli B) beliefs and attitudes C) perceptions D) human needs E) decisions
Answer: D Diff: 2 Type: MC Page Ref: 210 Skill: Concept Objective: 6-1
43) Which of the following is the highest part of Maslow's Hierarchy of Needs? A) physiological needs B) safety needs C) stimulus needs D) self-actualization needs E) social needs
Answer: D Diff: 2 Type: MC Page Ref: 210 Skill: Concept Objective: 6-1
46) People cannot focus on all of the stimuli that surround them each day. A person's tendency to screen out most of the information to which he or she is exposed is called ________. A) selective retention B) selective distortion C) selective attitude D) selective attention E) selective perception
Answer: D Diff: 2 Type: MC Page Ref: 210 Skill: Concept Objective: 6-1
86) Donna wants to buy a new coat. During the ________ stage of her purchase process she asked her friends to recommend a store and/or a style of coat. She searched the newspaper for coat sales, and she visited nearby stores to see what is available in her price range. A) product evaluation B) alternative evaluation C) need recognition D) information search E) purchase decision
Answer: D Diff: 2 Type: MC Page Ref: 213 Skill: Application Objective: 6-2
53) Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. This is an illustration of ________. A) share of customer B) market share C) profitability D) customer lifetime value E) market share maintenance
Answer: D Diff: 2 Type: MC Page Ref: 24 Skill: Concept Objective: 1-4
54) Phil just started a new habit of eating once a week at Mr. Sub restaurants. On average, he spends about $10 per meal. Phil says, "I'm 20 years old and I plan on eating at Mr. Sub until I am 50 years old." Phil's lifetime value at Mr. Sub could be best estimated by which calculation? A) $10 × 50 B) $10 × 20 C) $10 × 52 × 50 D) $10 × 52 × 30 E) $10 × 52 × 20
Answer: D Diff: 2 Type: MC Page Ref: 24 Skill: Concept Objective: 1-4
12) Demographic variables are so frequently used in market segmentation because they ________. A) create smaller segments B) create more easily reached segments C) do not involve stereotypes D) tend to be easier to identify and measure E) involve fewer attributes to consider
Answer: D Diff: 2 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2
32) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable
Answer: D Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2
33) The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are ________. A) accessible B) measurable C) reachable D) differentiable E) observable
Answer: D Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2
37) Purrsonals.com calls itself "the cat lover's social network." Which targeting approach best describes the site's approach? A) undifferentiated marketing B) differentiated marketing C) mass marketing D) niche marketing E) substitute marketing
Answer: D Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
46) It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________. A) marketing strategy; services B) individual relationships with customers; positioning C) superior products; value network partners D) greater knowledge of customers' needs; special reputation E) competitive advantage in comparison to mass-market companies; affordable pricing
Answer: D Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
60) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) elderly; expensive B) young; appealing C) vulnerable; marketing D) vulnerable or disadvantaged; controversial or potentially harmful E) mass market; deceptive
Answer: D Diff: 2 Type: MC Page Ref: 258 Skill: Concept Objective: 7-3
65) Which group determines a product's position relative to competing products? A) manufacturers B) wholesalers C) retailers D) consumers E) suppliers
Answer: D Diff: 2 Type: MC Page Ref: 259 Skill: Concept Objective: 7-4
66) A product's position is based on important attributes as perceived by ________. A) suppliers B) competitors C) market conditions D) consumers E) managers
Answer: D Diff: 2 Type: MC Page Ref: 259 Skill: Concept Objective: 7-4
102) Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) ________ product. A) augmented B) specialty C) convenience D) shopping E) unsought
Answer: D Diff: 2 Type: MC Page Ref: 280 Skill: Application Objective: 8-1
24) The purpose of idea generation is to create a ________ of ideas. The purpose of succeeding stages is to ________ that number. A) small number; reduce B) small number; increase C) large number; increase D) large number; reduce E) limited number; sustain
Answer: D Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
55) ________ refers to the identification of good ideas (and the dropping of poor ones) as soon as possible. A) Crowdsourcing B) Idea generation C) Concept testing D) Idea screening E) Concept development
Answer: D Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
69) Most products in the marketplace are in the ________ stage of the product life cycle. A) development B) introduction C) growth D) maturity E) decline
Answer: D Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
35) Branding helps consumers in many ways. Which of the following is definitely one way? A) Brand names help customers to see which products cost more. B) Brand names help customers look cooler than their friends. C) Brand names help customers to be trendy. D) Brand names help customers identify products that might benefit them. E) Brand names help customers find better sales.
Answer: D Diff: 2 Type: MC Page Ref: 323 Skill: Concept Objective: 9-1
51) The brand must stand out in ways that ________. A) are quirky B) are imaginary C) are international D) have real meaning E) make good jingles
Answer: D Diff: 2 Type: MC Page Ref: 329 Skill: Concept Objective: 9-3
12) The strongest brands go beyond attributes or benefit positioning; they are positioned on ________. A) desirable benefit B) good packaging C) service inseparability D) strong beliefs and values E) customer image
Answer: D Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
14) Which of the following is an option for a manufacturer's brand sponsorship for a product? A) subliminal brand B) multibrand C) public brand D) licensed brand E) solo-branding
Answer: D Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
61) Due to worsening economic times customers are becoming more cost conscious and increasingly are abandoning ________ in favour of ________. A) private brands, national brands B) national brands, no names C) private brands, exclusive names D) national brands, private brands E) no names, national brands
Answer: D Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
72) Procter & Gamble recently used the Mr. Clean character on its new line of auto cleaning kits. P&G did this to increase recognition and speed consumer acceptance. This success story is a good example of ________. A) promotion B) customer service C) research and development D) brand extension E) sales savvy
Answer: D Diff: 2 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
40) Brand advocacy begins with ________. A) payment B) an idea C) a touchpoint D) trust E) a computer
Answer: D Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-1
11) ________ involves charging a constant low price with few or no temporary price discounts. A) High-low pricing B) Target return pricing C) Cost-plus pricing D) Everyday low pricing (EDLP) E) Penetration pricing
Answer: D Diff: 2 Type: MC Page Ref: 356-357 Skill: Concept Objective: 10-1
76) Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games. This is an example of ________. A) good-value pricing B) add-on pricing C) product-support pricing D) value-added pricing E) cost-based pricing
Answer: D Diff: 2 Type: MC Page Ref: 358 Skill: Application Objective: 10-1
18) ________ are the sum of the ________ and ________ for any given level of production. A) Fixed costs; variable; total costs B) Fixed costs; total; variable costs C) Variable costs; fixed; total costs D) Total costs; fixed; variable costs E) Break-even costs; fixed; total costs
Answer: D Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
27) Of the following, which is a poor reason for a company to set prices low? A) to prevent competition from entering the market B) to stabilize the market C) to create excitement for a product D) to prepare for an easy exit from a market E) to match a competitor
Answer: D Diff: 2 Type: MC Page Ref: 362 Skill: Concept Objective: 10-2
43) Which of the following would likely be ineffective in supporting a market-skimming policy for a new product? A) The product's quality and image must support its higher price. B) Enough buyers must want the products at that price. C) Competitors are not able to undercut the high price. D) Competitors can enter the market easily. E) The cost of producing a smaller volume is not so high that it negates the advantage of charging more per unit.
Answer: D Diff: 2 Type: MC Page Ref: 368 Skill: Concept Objective: 10-3
56) When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________. A) trade discount B) functional discount C) allowance D) promotional allowance E) trade credit
Answer: D Diff: 2 Type: MC Page Ref: 372 Skill: Concept Objective: 10-5
72) Which of the following is likely to be the least effective action that a company can take to combat a competitor's price cut on a product? A) reduce price B) raise perceived value C) improve quality and increase price D) bundle products together E) launch a low-price "fighting brand"
Answer: D Diff: 2 Type: MC Page Ref: 378 Skill: Concept Objective: 10-6
3) A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. A) manufacturing chain B) distribution centre C) marketing intermediary D) value delivery network E) disintermediation system
Answer: D Diff: 2 Type: MC Page Ref: 392 Skill: Concept Objective: 11-1
11) Which of the following is a marketing intermediary? A) customers B) producers C) manufacturers D) retailers E) advertisers
Answer: D Diff: 2 Type: MC Page Ref: 395 Skill: Concept Objective: 11-2
8) Which of the following creates the shortest distribution channel between a producer and a customer? A) retail marketing B) indirect marketing C) share marketing D) direct marketing E) wholesale marketing
Answer: D Diff: 2 Type: MC Page Ref: 398 Skill: Concept Objective: 11-3
25) Pastaliano is a restaurant based in Illinois that exclusively sells Italian food. Pastaliano sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Pastaliano brand name. Which kind of channel arrangement does Pastaliano most likely have with Clover Trading? A) a horizontal marketing system B) a direct marketing system C) an administered vertical marketing system D) a contractual vertical marketing system E) a corporate vertical marketing system
Answer: D Diff: 2 Type: MC Page Ref: 401 Skill: Concept Objective: 11-3
28) A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________. A) corporate vertical marketing system B) contractual vertical marketing system C) direct marketing system D) horizontal marketing system E) administered vertical marketing system
Answer: D Diff: 2 Type: MC Page Ref: 401 Skill: Concept Objective: 11-3
31) Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements? A) direct distribution system B) horizontal marketing system C) corporate vertical franchise system D) multichannel distribution system E) administered vertical marketing system
Answer: D Diff: 2 Type: MC Page Ref: 402 Skill: Concept Objective: 11-3
36) ________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories. A) Inclusive B) Horizontal C) Intensive D) Exclusive E) Vertical
Answer: D Diff: 2 Type: MC Page Ref: 409 Skill: Concept Objective: 11-4
40) Which of the following is an advantage of exclusive dealing between a seller and a dealer? A) The seller gains more shelf power compared to competitors' products. B) The seller can avoid using any intermediary and sell the product directly to customers. C) Customers get more loyal and dependable outlets. D) The dealer obtains a steady source of supply and more support from the seller. E) The dealer can freely choose what products to sell without any interference from the seller.
Answer: D Diff: 2 Type: MC Page Ref: 409 Skill: Concept Objective: 11-4
16) Which of the following statements is true of retailing? A) All retail stores are full-service retail stores. B) A department store has a narrow product line with a deep assortment. C) The largest type of retail outlet is a supermarket. D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed. E) A feature common to all types of retail stores is the use of the everyday low pricing strategy.
Answer: D Diff: 2 Type: MC Page Ref: 433 Skill: Concept Objective: 12-1
3) Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A) self-service B) full-service C) off-price D) limited-service E) convenience
Answer: D Diff: 2 Type: MC Page Ref: 434 Skill: Concept Objective: 12-1
13) Which type of store is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services? A) discount stores B) specialty stores C) factory outlets D) superstores E) off-price outlets
Answer: D Diff: 2 Type: MC Page Ref: 436 Skill: Concept Objective: 12-1
30) Venture Zone, a hiking and climbing equipment retailer, has a rock climbing wall inside the store so that consumers can test products prior to purchase. Venture Zone most likely differentiates itself from its competitors through ________. A) everyday low pricing B) predatory pricing C) self-service retailing D) experiential retailing E) franchising
Answer: D Diff: 2 Type: MC Page Ref: 442 Skill: Concept Objective: 12-2
44) In Canada, online retail growth rates are ________. A) decreasing rapidly B) decreasing modestly C) increasing modestly D) increasing at a double-digit rate every year E) not changing
Answer: D Diff: 2 Type: MC Page Ref: 447 Skill: Concept Objective: 12-3
74) Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ________ as creating "abundant food and a healthy environment." A) strategy B) market development C) business portfolio D) mission E) value-delivery network
Answer: D Diff: 2 Type: MC Page Ref: 45 - 48 Skill: Application Objective: 2-1
38) Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________. A) power centres B) franchises C) shopping centres D) pop-up stores E) category killers
Answer: D Diff: 2 Type: MC Page Ref: 450 Skill: Concept Objective: 12-3
7) A vendor for Ford Motor Company received the following message from one of Ford's marketing managers: "As we move forward during the twenty-first century, it is incumbent upon us to inform you that Ford is committed to building profitable customer relationships by creating environmentally better cars and getting them to market faster at lower costs." The marketing manager is most likely referring to Ford's ________. A) vision statement B) market tactics C) business portfolio D) mission statement E) business objectives
Answer: D Diff: 2 Type: MC Page Ref: 46 Skill: Concept Objective: 2-1
4) Which of the five major promotion tools includes building up a positive corporate image and handling unfavorable stories and events? A) sales promotion B) personal selling C) direct marketing D) public relations E) search engine optimization
Answer: D Diff: 2 Type: MC Page Ref: 468 Skill: Concept Objective: 13-1
11) Companies are challenged with the changing face of today's marketing communications. Change in which of the following is one of the factors? A) media B) competitors C) micromarkets D) consumers E) advertising
Answer: D Diff: 2 Type: MC Page Ref: 468 Skill: Concept Objective: 13-2
10) Companies are using less ________ and more ________ as a result of an explosion of more focused media that better match today's targeting strategies. A) marketing; media B) media; sales C) narrowcasting; broadcasting D) mass media; targeted media E) advertising; word-of-mouth
Answer: D Diff: 2 Type: MC Page Ref: 469 Skill: Concept Objective: 13-2
12) Some argue that factors like high costs will cause the old mass-media communications model to be abandoned in favour of ________. A) public relations B) direct marketing C) push and pull strategies D) new technologies E) buzz marketing
Answer: D Diff: 2 Type: MC Page Ref: 469 Skill: Concept Objective: 13-2
9) Which of the following is an example of a media that an advertiser might use to reach larger customer segments? A) cable television channels B) email C) blogs D) network television E) online social networks
Answer: D Diff: 2 Type: MC Page Ref: 469 Skill: Concept Objective: 13-2
8) ________ should be market oriented and defined in terms of ________. A) Strategic plans; company needs B) Annual plans; product needs C) Long-range plans; company needs D) Mission statements; customer needs E) Objectives; customer needs
Answer: D Diff: 2 Type: MC Page Ref: 47 Skill: Concept Objective: 2-1
24) "Buy it now" is the message of ________. A) personal selling B) advertising C) a nonpersonal communication channel D) sales promotion E) publicity
Answer: D Diff: 2 Type: MC Page Ref: 475 Skill: Concept Objective: 13-2
35) A product in the maturity stage will often require ________ advertising. A) informative B) comparative C) persuasive D) reminder E) cooperative
Answer: D Diff: 2 Type: MC Page Ref: 479 Skill: Concept Objective: 13-3
15) Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to be turned into detailed ________ that guide each level of the company. A) strategies B) tactics C) product mixes D) supporting objectives E) promotional tools
Answer: D Diff: 2 Type: MC Page Ref: 48 Skill: Concept Objective: 2-1
41) The most logical budget-setting method is the ________ method because it is based on spending necessary to accomplish specific promotion goals. A) percentage-of-sales B) affordable C) competitive-parity D) objective-and-task E) exponential smoothing
Answer: D Diff: 2 Type: MC Page Ref: 480 Skill: Concept Objective: 13-3
45) Digital technology present which of the following problems for marketers? A) Consumers are watching less television. B) Consumers have difficulty attending to specific advertising messages due to advertising clutter. C) Audiences are less interested in media consumption. D) Consumers have more choices about what to watch or not watch. E) Television advertising is becoming more expensive.
Answer: D Diff: 2 Type: MC Page Ref: 482 Skill: Concept Objective: 13-3
47) The goal of advertising as entertainment is for ________ to become a part of the entertainment rather than interrupting it. A) branded entertainment B) advertainment C) audience engagement D) brands E) testimonial endorsement
Answer: D Diff: 2 Type: MC Page Ref: 483 Skill: Concept Objective: 13-3
73) Lobbying, or building and maintaining relations with legislators and government officials to influence legislation and regulation, is a function of ________. A) message strategy B) press relations C) press agencies D) public relations E) a mass market strategy
Answer: D Diff: 2 Type: MC Page Ref: 494 Skill: Concept Objective: 13-5
23) In the Boston Consulting Group approach, ________ provide(s) a measure of market attractiveness. A) relative market share B) SBUs C) cash cows D) market growth rate E) dogs
Answer: D Diff: 2 Type: MC Page Ref: 50 Skill: Concept Objective: 2-2
10) Territorial sales force structures have many benefits. Which is the least likely benefit? A) Travel expenses can be minimized. B) Each salesperson's job is clearly defined. C) Salespeople have the opportunity and incentive to build strong relationships with customers. D) Salespeople develop in-depth knowledge of a product line. E) Accountability is clearly defined for each salesperson.
Answer: D Diff: 2 Type: MC Page Ref: 512 Skill: Concept Objective: 14-2
82) Morrill Motors splits Canada into 10 sales regions. Within each of those regions, the company maintains two sales teams—one for existing customers and one for prospects. What type of sales force structure does Morrill Motors use? A) territorial B) product C) customer D) complex E) workload
Answer: D Diff: 2 Type: MC Page Ref: 513 Skill: Application Objective: 14-2
27) Why are many companies using e-learning to conduct sales training programs? A) Customers appreciate the flexibility of e-learning. B) The company's objectives are more easily conveyed through e-learning. C) E-learning allows for more customer feedback. D) E-learning is more efficient and sometimes even fun. E) E-learning is the best way to simulate sales calls.
Answer: D Diff: 2 Type: MC Page Ref: 517 Skill: Concept Objective: 14-2
79) Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This effort by Starbucks management is an example of ________. A) market development B) product development C) diversification D) market penetration E) product adaptation
Answer: D Diff: 2 Type: MC Page Ref: 52 Skill: Application Objective: 2-2
80) The U.S.-based company Walmart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K., and Germany, and other nations. This is an example of how Walmart is pursuing ________ as a growth strategy. A) market penetration B) product development C) downsizing D) market development E) diversification
Answer: D Diff: 2 Type: MC Page Ref: 52 Skill: Application Objective: 2-2
59) The selling process must be understood in the context of building and maintaining ________. A) value B) short-term sales C) competitive advantage D) profitable customer relationships E) profit margin
Answer: D Diff: 2 Type: MC Page Ref: 527 Skill: Concept Objective: 14-3
95) When airlines award customers points for miles traveled that can be turned in for free airline trips, they are using a(n) ________. A) price pack B) POP promotion C) premium reward D) loyalty program E) advertising specialty
Answer: D Diff: 2 Type: MC Page Ref: 530-531 Skill: Application Objective: 14-4
70) Which consumer promotion tool requires consumers to send a proof of purchase to the manufacturer? A) cents-off deals B) coupons C) samples D) cash refunds E) promotional products
Answer: D Diff: 2 Type: MC Page Ref: 532 Skill: Concept Objective: 14-4
11) Direct and digital marketing have become the fastest-growing form of ________. A) advertising B) distribution C) marketing research D) marketing E) technological development
Answer: D Diff: 2 Type: MC Page Ref: 548 Skill: Concept Objective: 15-1
5) Which of the following is least likely to be one of the benefits for the buyer in direct marketing? A) access to numerous products B) access to comparative information C) convenience D) guaranteed low prices E) privacy
Answer: D Diff: 2 Type: MC Page Ref: 549-550 Skill: Concept Objective: 15-1
50) Which of the following is an effective way a company can conduct online marketing without trying to sell anything? A) creating a portal site B) placing display ads C) calling their customers to complete surveys D) creating branded community websites E) email marketing
Answer: D Diff: 2 Type: MC Page Ref: 554 Skill: Concept Objective: 15-3
31) Which of the following is one of the reasons that many marketers view mobile phones as the next big marketing medium? A) Older consumers are using their cell phones for text messaging and accessing the web. B) Cell phone users can respond instantly to time-sensitive offers. C) Unlike traditional telemarketing, mobile phone marketing is initially appealing to most cell phone users. D) Mobile phone advertising has a strong response rate. E) Canadian consumers are slow to adopt new technologies.
Answer: D Diff: 2 Type: MC Page Ref: 563 Skill: Concept Objective: 15-4
4) ________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. A) Selling B) Advertising C) Bartering D) Marketing E) Negotiating
Answer: D Diff: 2 Type: MC Page Ref: 6 Skill: Concept Objective: 1-1
18) Critics claim that companies in the ________ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers. A) services B) housing and construction C) food and beverage D) consumer electronics and computer E) financial and entertainment
Answer: D Diff: 2 Type: MC Page Ref: 88 Skill: Concept Objective: 3-2
19) Marketers respond to charges of planned obsolescence with the following. A) Consumers lead change and innovation. B) The product sells itself. C) The product will eventually wear out anyway. D) For most technical products, customers want the latest innovations, even if the older model still works. E) Companies do not want to lose their brands.
Answer: D Diff: 2 Type: MC Page Ref: 88 Skill: Concept Objective: 3-2
82) Adbusters, a social critic group from Vancouver, sponsors the Buy Nothing Day campaign. The campaign asks people to stop shopping for one day and to reflect on future purchases. This campaign is in response to criticism about the North American marketing system for creating ________ A) too few social goods B) environmental problems C) shoddy products D) false wants and too much materialism E) predatory competition
Answer: D Diff: 2 Type: MC Page Ref: 88—89 Skill: Application Objective: 3-2
26) To restore the balance between private and public goods, producers could be required to bear the full ________ costs of their operations. A) promotional B) cultural C) environmental D) social E) safety
Answer: D Diff: 2 Type: MC Page Ref: 89 Skill: Concept Objective: 3-2
27) A second option to restore the balance between private and public goods is to make the consumers pay the ________ costs. A) promotional B) cultural C) environmental D) social E) safety
Answer: D Diff: 2 Type: MC Page Ref: 89 Skill: Concept Objective: 3-2
73) Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________. A) product concept B) marketing concept C) societal marketing concept D) production concept E) selling concept
Answer: D Diff: 3 Type: MC Page Ref: 11 Skill: Application
76) Which of the following phrases reflects the marketing concept? A) The supplier is king. B) Marketing should be viewed as hunting and not gardening. C) This is what I make, won't you please buy it? D) This is what I want, won't you please make it? E) This is better than the competition, won't you please buy it?
Answer: D Diff: 3 Type: MC Page Ref: 12 Skill: Application Objective: 1-3
14) Which of the following is considered part of a company's marketing intermediaries? A) stockholders B) government officials who may regulate the company's industry C) media groups that may cover stories on the company D) marketing services agencies E) unions
Answer: D Diff: 3 Type: MC Page Ref: 121 Skill: Concept Objective: 4-1
47) You generally need to ask three questions when developing a sampling plan. Which of the questions below is one of these three? A) Who should be left out of the sample (sampling exclusion)? B) How should we contact the sample (sampling approach)? C) Why should respondents be selected (sampling justification)? D) How should participants be chosen (sampling procedure)? E) none of the above
Answer: D Diff: 3 Type: MC Page Ref: 175 Skill: Concept Objective: 5-3
83) Bob's job description had been changed. The rationale for the changes made no sense to Bob when they were explained. Bob continued to perform most of his job duties as usual. He has engaged in ________. A) selective distortion B) selective attitude C) selective interpretation D) selective attention E) perceptual defense
Answer: D Diff: 3 Type: MC Page Ref: 210 Skill: Application Objective: 6-1
56) The buyer decision process consists of five stages. Which of the following is one of these stages? A) need search B) risk assessment C) variety-seeking buying behaviour D) evaluation of alternatives E) postpurchase enjoyment
Answer: D Diff: 3 Type: MC Page Ref: 213 Skill: Concept Objective: 6-2
58) If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake a(n) ________. A) brand personality B) alternative evaluation C) postpurchase behaviour D) information search E) product adoption
Answer: D Diff: 3 Type: MC Page Ref: 213 Skill: Concept Objective: 6-2
59) The information sources that are most effective at influencing a consumer's purchase decision are ________. These sources legitimize or evaluate products for the buyer. A) commercial B) public C) experimental D) personal E) social
Answer: D Diff: 3 Type: MC Page Ref: 213 Skill: Concept Objective: 6-2
104) Which of the following is at the core for product designers to consider as they develop a product? A) which product features can be added to create higher-level models B) how the product appears C) what the product's technical specifications are D) how customers will use and benefit from the product E) how the product is packaged to attract spontaneous purchases
Answer: D Diff: 3 Type: MC Page Ref: 279 Skill: Application Objective: 8-1
86) The major product line decision involves ________. A) line stretching B) moving the line upward or downward C) product line filling D) product line length E) product packaging
Answer: D Diff: 3 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
27) Which of the following is a potential drawback of multibranding? A) Consumers may become confused about the image of the main brand. B) An overextended brand name might lose its specific meaning for consumers. C) Different product features can appeal to consumers with different buying motives. D) The company's resources may be spread over too many brands. E) The company can occupy more retail shelf space.
Answer: D Diff: 3 Type: MC Page Ref: 335 Skill: Concept Objective: 9-3
21) Which of the following presents the strongest reason that markup pricing is generally illogical? A) Sellers earn a fair return on their investment. B) By tying the price to cost, sellers simplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) This method ignores demand. E) With a standard markup, consumers know when they are being overcharged.
Answer: D Diff: 3 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
12) Kevin Pinker is a freelance electrical engineer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? A) SoftStar B) BlueHill C) the consumer D) Abundon E) Kevin Pinker
Answer: D Diff: 3 Type: MC Page Ref: 399 Skill: Concept Objective: 11-3
13) Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company. Kiltmark produces flour-based edible products, which it distributes to a wholesale company called Yellowstar Trading. Yellowstar Trading then sells Kiltmark products to the discount retailer, Stroos. Stroos sells the products to consumers. Which of the following is considered a marketing intermediary in these transactions? A) only Kiltmark B) only Stroos C) only Yellowstar Trading D) both Yellowstar Trading and Stroos E) both Stroos and Mintel Agro
Answer: D Diff: 3 Type: MC Page Ref: 399 Skill: Concept Objective: 11-3
26) In the BCG approach, ________ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into ________. A) cash cows; stars B) question marks; dogs C) stars; question marks D) stars; cash cows E) dogs; cash cows
Answer: D Diff: 3 Type: MC Page Ref: 50 Skill: Concept Objective: 2-2
78) The success of the Tom Dennis Ford dealership has been built largely on return customers and word-of-mouth recommendations. The majority of sales are made to customers who have purchased a vehicle at the dealership before or who know someone who had a positive experience purchasing a vehicle there. The sales force at the Tom Dennis Ford dealership most likely knows that using high-pressure selling does not work if the dealership wants to ________. A) achieve short-term gains B) move last year's models C) obey local and federal law D) build long-term relationships with customers E) maintain a database
Answer: D Diff: 3 Type: MC Page Ref: 87 Skill: Application Objective: 3-2
17) Which of the following is the most likely result of a marketing strategy that attempts to serve all customers? A) All customers will be delighted. B) Customer-perceived value will be increased. C) Customer evangelists will become unpaid salespersons for the service or product. D) Perhaps no customers will be satisfied. E) The company will likely need to follow up with a demarketing campaign.
Answer: D Diff: 2 Type: MC Page Ref: 10 Skill: Concept Objective: 1-3
29) The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. A) product B) production C) selling D) equity E) marketing
Answer: E Diff: 1 Type: MC Page Ref: 12 Skill: Concept Objective: 1-3
80) You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following? A) database management B) website hits C) the societal marketing concept D) not-for-profit marketing E) customer relationship management
Answer: E Diff: 1 Type: MC Page Ref: 15 Skill: Application Objective: 1-4
64) You have been asked to locate secondary data for your small organization's research needs. Which of the following is a common source for this type of research? A) third party research companies B) the Canadian Small Business Administration C) the Canadian Census Bureau D) online surveys E) Statistics Canada
Answer: E Diff: 1 Type: MC Page Ref: 182 Skill: Concept Objective: 5-5
88) Leona purchased two bottles of wine from vineyards in Australia. When asked her opinion of the wine, she said the burgundy wine tasted like alcoholic grape juice, but the Chablis had a crisp taste that she really enjoyed. These statements were made during the ________ stage of the purchase decision. A) information search B) situational analysis C) alternative evaluation D) purchase decision E) postpurchase behaviour
Answer: E Diff: 1 Type: MC Page Ref: 215 Skill: Application Objective: 6-2
3) Which of the following best describes positioning? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's mind that the brand or company should occupy relative to the competition
Answer: E Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1
32) Texting promotions (e.g., brand coupons), mobile games, and text-in contests are all examples of ________ marketing. A) iTV B) online C) podcast D) vodcast E) mobile phone
Answer: E Diff: 1 Type: MC Page Ref: 562 Skill: Concept Objective: 15-4
9) Which of the following best encompasses market offerings? A) products B) people, places, and ideas C) products and information D) products and experiences E) persons, places, organizations, information, and ideas
Answer: E Diff: 1 Type: MC Page Ref: 8 Skill: Concept Objective: 1-2
24) Which one marketing management concept, if the only one adopted, can lead manufacturers to develop marketing myopia? A) customer-driven marketing B) customer-driving marketing C) societal marketing D) selling E) product concept
Answer: E Diff: 2 Type: MC Page Ref: 12 Skill: Concept Objective: 1-3
5) Which of the following factors is part of the microenvironment? A) demographics B) economics C) technology D) cultural forces E) intermediaries
Answer: E Diff: 2 Type: MC Page Ref: 120 Skill: Concept Objective: 4-1
80) What type of research would be best suited for identifying which demographic groups prefer diet soft drinks and why they have this preference? A) observational research B) focus group research C) ethnographic research D) experimental research E) descriptive research
Answer: E Diff: 2 Type: MC Page Ref: 163 Skill: Application Objective: 5-3
81) You want to observe how often consumers listen to music throughout their day and what different audio devices they use. You are also interested in how consumers store and access their own music collections. You should conduct ________ research. A) causal B) experimental C) secondary D) survey E) exploratory
Answer: E Diff: 2 Type: MC Page Ref: 163 Skill: Application Objective: 5-3
60) Marketing information is only valuable when it is used to ________. A) simplify management's job B) identify a target market C) please shareholders D) increase efficiencies in the supply chain E) gain customer insights relevant to making better marketing decisions
Answer: E Diff: 2 Type: MC Page Ref: 180 Skill: Concept Objective: 5-4
63) Small organizations can effectively obtain and use (with minimal effort and cost) the following types of data, except ________. A) experimental data B) observational data C) secondary data D) online data E) ethnographic data
Answer: E Diff: 2 Type: MC Page Ref: 182 Skill: Concept Objective: 5-5
47) Which of the following best explains why consumers have greater power and control in today's marketplace? A) The production concept and competition have lowered prices. B) Implementation of the product concept has resulted in continually improving products. C) Customer-driving marketing creates products and services that meet customers' future needs. D) More companies are implementing societal marketing and weighing long-run costs and benefits. E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.
Answer: E Diff: 2 Type: MC Page Ref: 19 Skill: Concept Objective: 1-4
72) Marketers call the decision-making unit of a buying organization the ________. A) business buyer B) business-to-business market C) supplier-development centre D) buying system E) buying centre
Answer: E Diff: 2 Type: MC Page Ref: 222 Skill: Concept Objective: 6-4
76) Reverse auctions, trading exchanges, and company buying sites are all ways that companies can participate in ________. A) secure extranets B) product value analysis C) vendor-managed inventory systems D) systems selling E) e-procurement
Answer: E Diff: 2 Type: MC Page Ref: 226 Skill: Concept Objective: 6-5
45) The stage of new-product development where the product and marketing program are tested in realistic market settings is called ________. A) idea generation B) concept testing C) product concept D) commercialization E) test marketing
Answer: E Diff: 2 Type: MC Page Ref: 290 Skill: Concept Objective: 8-2
89) The ________ is the sum total of all the attributes of a brand, and the emotions it inspires in the minds of consumers. A) brand equity B) brand valuation C) brand touchpoints D) brand image E) brand personality
Answer: E Diff: 2 Type: MC Page Ref: 327 Skill: Concept Objective: 9-2
56) Some companies like Godiva, Starbucks, Apple, and Victoria's Secret rely less on a product's tangible attributes and more on creating ________. A) advertisements B) promotions C) public relations campaigns D) touch points E) surprise, passion, and excitement.
Answer: E Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
66) Costco recently teamed up with mattress maker Stearns & Foster to market a line of Kirkland Signature mattress sets by Stearns & Foster. This is a good example of ________. A) branding B) trademarking C) advertising D) product mixing E) co-branding
Answer: E Diff: 2 Type: MC Page Ref: 3313 Skill: Concept Objective: 9-3
63) A modest manufacturing company in Regina has recently paid the Tommy Hilfiger and Quicksilver companies for the right to use their brand names in everything from belts to blouses, and shirts to socks. These are examples of ________. A) branding B) trademarking C) copying D) knock offs E) licensing
Answer: E Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
93) A company has four main choices when it comes to brand development. Which of the following best describes these choices? A) brand names, brand extensions, multibrands, or new brands B) line extensions, brand names, multibrands, or new brands C) line extensions, brand extensions, brand names, or new brands D) line extensions, brand extensions, multibrands, or brand names E) line extensions, brand extensions, multibrands, or new brands
Answer: E Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
68) One advantage of co-branding is ________. A) more defined target market B) decreased competition C) longer product life D) more memorable E) greater brand equity
Answer: E Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-4
71) At Jeep you can now buy 7 different models; the Commander, Grand Cherokee, Compass, Patriot, Liberty, Wrangler, and Wrangler Unlimited. A risk of this over extension is that a brand ________. A) loses market share B) increases variable costs per unit C) complicates consumer touchpoints D) dominates an industry E) confuse the image of the brand
Answer: E Diff: 2 Type: MC Page Ref: 335 Skill: Concept Objective: 9-3
73) One of the many benefits to multibranding is that ________. A) each brand has a small market share B) it focuses market penetration C) it increases per unit profitability D) it simplifies promotion E) consumers choose one of your many brands
Answer: E Diff: 2 Type: MC Page Ref: 335 Skill: Concept Objective: 9-3
31) Brand managers are responsible for, and manage, a brand. An example of a questions brand managers continually ask is ________. A) Is our brand profitable? B) Should we sign up celebrities like Neil Young or Nelly Furtado as our spokespeople? C) What is our competitive advantage? D) How can we increase sales? E) Does our brand excel at delivering benefits that customers truly value?
Answer: E Diff: 2 Type: MC Page Ref: 336 Skill: Concept Objective: 9-3
42) ________ is universally one of the most effective ways to create brand advocates. A) Having contests B) Writing blogs C) Creating advertisements D) Paying people E) Understanding and solving problems
Answer: E Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-5
84) To create brand advocates some brand managers try to make ________ part of the brand story. A) people B) profit C) advertisements D) product development E) customers and employees
Answer: E Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-5
77) General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment. This approach is called ________. A) value-based pricing B) going-rate pricing C) cost-plus pricing D) low-price image E) target return pricing
Answer: E Diff: 2 Type: MC Page Ref: 359 Skill: Application Objective: 10-1
28) With target costing, marketers will first ________ and then ________. A) build the marketing mix; identify the target market B) identify the target market; build the marketing mix C) design the product; determine its cost D) use skimming pricing; use penetrating pricing E) determine a selling price; target costs to ensure that the price is met
Answer: E Diff: 2 Type: MC Page Ref: 362 Skill: Concept Objective: 10-2
2) Which of the following is true of downstream channels in a company's supply chain? A) They provide their expertise in product design. B) They manufacture the products of the company. C) They supply raw materials and components to the company. D) They contribute financially to the company during production. E) They form an intermediary link between the company and its customers.
Answer: E Diff: 2 Type: MC Page Ref: 391-392 Skill: Concept Objective: 11-1
10) A firm that uses direct marketing would most likely sell its products through ________. A) one marketing intermediary B) big box retailers C) large wholesalers D) multiple intermediaries E) the company Web site
Answer: E Diff: 2 Type: MC Page Ref: 398 Skill: Concept Objective: 11-3
19) In a ________, producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate. A) direct marketing system B) horizontal distribution channel C) lateral marketing system D) conventional distribution channel E) vertical marketing system
Answer: E Diff: 2 Type: MC Page Ref: 399 Skill: Concept Objective: 11-3
20) Which of the following is true of a vertical marketing system? A) It is formed when two or more companies at one level join together to follow a new marketing opportunity. B) It is formed when a single firm sets up two or more marketing channels to reach one or more customer segments. C) It does not give overall power to any one member in the channel. D) It has each channel member acting as a separate business unit trying to maximize its own profits. E) It has one channel member owning all the other channel members or has contracts with all other channel members.
Answer: E Diff: 2 Type: MC Page Ref: 399 Skill: Concept Objective: 11-3
26) In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members. A) direct B) contractual vertical C) horizontal D) corporate vertical E) administered vertical
Answer: E Diff: 2 Type: MC Page Ref: 400 Skill: Concept Objective: 11-3
30) GreatWords is a book retailer. Due to the increasing demand for audiobooks, the firm decides to sell audiobooks in its stores. GreatWords signs a deal with Carpem, a leading producer of educational audiobooks. According to the deal, GreatWords will sell only Carpem's audio titles in its stores, while Carpem will not sell its books through other retailer stores. GreatWords profits from Carpem's popularity while Carpem, in return, enjoys better sales. This is most likely an example of a(n) ________ marketing system. A) direct B) administered vertical C) corporate vertical D) contractual vertical E) horizontal
Answer: E Diff: 2 Type: MC Page Ref: 401 Skill: Concept Objective: 11-3
16) Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles—cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict? A) a conflict between Orion Steel and Accline Cars B) a conflict between Orion Steel and Accline dealers C) a conflict between two Accline car dealers D) a conflict between Accline dealers and government entities E) a conflict between Accline Cars and its dealers
Answer: E Diff: 2 Type: MC Page Ref: 403 Skill: Concept Objective: 11-3
39) When a seller requires that only certain dealers carry its products, its strategy is known as ________. A) horizontal restraint of trade B) intensive distribution C) vertical distribution D) disintermediation E) exclusive distribution
Answer: E Diff: 2 Type: MC Page Ref: 409 Skill: Concept Objective: 11-4
41) Which of the following is true of an exclusive dealing arrangement between a producer and a dealer? A) It prohibits the producer from selling outside the dealer's territory. B) It prevents the producer from using any other dealer to sell its products regardless of geographical area. C) It gives the producer's products more shelf power compared to a competitor's products being sold by the dealer. D) It can be considered illegal if it increases competition substantially. E) It does not allow other producers to sell to that dealer.
Answer: E Diff: 2 Type: MC Page Ref: 409 Skill: Concept Objective: 11-4
10) Department stores are most likely characterized by ________. A) narrow product lines B) specialty goods and services C) predatory pricing strategies D) deep assortments of luxury brands E) wide varieties of product lines
Answer: E Diff: 2 Type: MC Page Ref: 435 Skill: Concept Objective: 12-1
41) All of the following are trends in Canadian retail except ________. A) experiential retailing B) enhanced use of in-store technology C) increased gift card usage D) social media and mobile E) rapid growth of malls
Answer: E Diff: 2 Type: MC Page Ref: 444-451 Skill: Concept Objective: 12-3
3) Starbucks has an annual plan in place to deal with the company's current SBUs and their operations. However, as a growth-oriented firm, Starbucks is interested in both domestic and international markets. This requires Starbucks to constantly monitor the environment and adapt to the opportunities with which it is presented. To take advantage of its changing marketing opportunities, it is most important for Starbucks to have which of the following in place? A) value-delivery network B) mission statement C) supporting objectives D) profit analysis E) strategic plan
Answer: E Diff: 2 Type: MC Page Ref: 46 Skill: Concept Objective: 2-1
6) The promotion mix is the company's primary communication activity; the marketing mix must be coordinated for the greatest communication impact. Which of the following are included in the entire marketing mix? A) product, competitor B) competitor, price C) price, intermediaries D) intermediaries, place E) promotion, price
Answer: E Diff: 2 Type: MC Page Ref: 468 Skill: Concept Objective: 13-1
17) Integrated marketing communications require a company's mass-market advertisements, website, email, and personal selling communications to all have ________. A) equal portions of the advertising budget B) independent communications directors C) separate marketing objectives D) the same target audience E) the same clear and compelling message
Answer: E Diff: 2 Type: MC Page Ref: 473 Skill: Concept Objective: 13-2
21) Which promotional tool is most effective in building up buyers' preferences, convictions, and, most importantly, actions? A) mass-market advertising B) segmented advertising C) sales promotion D) public relations E) personal selling
Answer: E Diff: 2 Type: MC Page Ref: 475 Skill: Concept Objective: 13-2
25) Which promotional tool is described as less public, immediate, customized, and interactive? A) segmented advertising B) sales promotions C) public relations D) brand contacts E) direct marketing
Answer: E Diff: 2 Type: MC Page Ref: 476 Skill: Concept Objective: 13-2
38) A company decides on its promotion budget by using four common methods to set the total budget for advertising. What are two of these methods? A) the affordable method, the integrated method B) the percentage-of-sales method, the integrated method C) the integrated method, objective-task method D) the integrated method, the competitive-parity method E) the objective-and-task method, affordable method
Answer: E Diff: 2 Type: MC Page Ref: 479 Skill: Concept Objective: 13-2
43) Soaring media costs, focused target marketing strategies, and the growing array of new media have increased the importance of ________. A) the affordable method of setting a promotion budget B) the competitive-parity method of setting a promotion budget C) using humor to capture audience attention and interest D) implementing branded entertainment E) media planning
Answer: E Diff: 2 Type: MC Page Ref: 481 Skill: Concept Objective: 13-3
44) To succeed, an advertisement must ________. A) have a significant budget B) be placed during prime time C) be high frequency D) interrupt or disrupt E) gain attention and be engaging
Answer: E Diff: 2 Type: MC Page Ref: 482 Skill: Concept Objective: 13-3
90) When Maxwell House shows one of its buyers carefully selecting coffee beans, which type of execution style is being used? A) mood or image B) fantasy C) personality symbol D) musical E) technical expertise
Answer: E Diff: 2 Type: MC Page Ref: 485 Skill: Application Objective: 13-3
56) The Geico gecko and Tony the Tiger are examples of ________ used in successful advertising campaigns. A) slice of life appeals B) creative endorsements C) testimonials D) celebrity spokespeople E) personality symbols
Answer: E Diff: 2 Type: MC Page Ref: 485 Skill: Concept Objective: 13-3
74) Which of the following functions is least likely to be performed by a public relations department? A) product publicity B) lobbying C) public affairs D) investor relations E) media vehicle selection
Answer: E Diff: 2 Type: MC Page Ref: 494 Skill: Concept Objective: 13-5
80) New Wave Music Company has decided to switch to a customer sales force structure. Which of the following is the company now not likely to experience? A) The company can become more customer-focused. B) The company can build closer relationships with important customers. C) The company can better serve different industries. D) The company can better serve current customers and find new customers. E) The company can expect salespeople to develop in-depth knowledge of numerous and complex product lines.
Answer: E Diff: 2 Type: MC Page Ref: 513 Skill: Application Objective: 14-2
63) Sales promotions motivate the consumer to buy ________. A) soon B) from retailers C) from wholesalers D) on credit E) now
Answer: E Diff: 2 Type: MC Page Ref: 529 Skill: Concept Objective: 14-4
96) Kirk O'Hare renewed his cell phone contract with Zip Wireless and purchased a new cell phone through the Zip Web site. If Kirk mails Zip his phone receipt, proof of purchase, and a completed form, he will receive $50 in the mail. What type of sales promotion is being used by Zip? A) point of purchase B) advertising specialty C) premium D) price pack E) rebate
Answer: E Diff: 2 Type: MC Page Ref: 532 Skill: Application Objective: 14-4
76) Business promotion tools are used for which of the following? A) generate business leads, increase manufacturing B) increase manufacturing, stimulate purchases C) reward resellers, get rid of extra stock D) increase manufacturing, motivate customers E) motivate people, generate business leads
Answer: E Diff: 2 Type: MC Page Ref: 534 Skill: Concept Objective: 14-4
47) A company would be most likely to benefit in which of the following ways by using blogs as marketing tools? A) Blogs provide companies with additional revenue. B) Blog content is easy to filter, monitor, and control. C) Long-term customer relationships can be developed through blogs. D) Demographic information about customers can be easily tracked. E) Blogs are an inexpensive yet personal way to connect with consumers.
Answer: E Diff: 2 Type: MC Page Ref: 559 Skill: Concept Objective: 15-3
79) Recently, a class-action lawsuit was brought against McDonald's, charging that its food has contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue to point out the health dangers of many "fast food" menu items. These critics are concerned that the fast food industry is pushing ________. A) high-pressure selling B) deceptive promotions C) deceptive pricing D) deceptive packaging E) harmful products
Answer: E Diff: 2 Type: MC Page Ref: 87 Skill: Application Objective: 3-2
80) 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. Trendy Teens could most easily be criticized for which of the following? A) deceptive promotions B) shoddy products C) high-pressure selling D) poor service to disadvantaged consumers E) planned obsolescence
Answer: E Diff: 2 Type: MC Page Ref: 87-88 Skill: Application Objective: 3-2
73) Which of the following statements about buying centres is true? A) The buying centre is like a standing committee. B) The buying centre roles are specified on the organizational chart. C) The typical buying centre has five employees, one to assume each of the buying centre's roles. D) An individual's role in the buying centre does not change. E) The buying centre may involve informal participants who are not obvious to sellers.
Answer: E Diff: 3 Type: MC Page Ref: 222 Skill: Concept Objective: 6-4
99) When the Twin Six Cafe provides gourmet menu options to its customers, as well as impeccable service—which even allows customers to hand-select their own cuts of meat— ________ is/are evident. A) only an actual product B) only an augmented product C) only a core benefit D) both a core benefit and an actual product E) a core benefit, an actual product, and an augmented product
Answer: E Diff: 3 Type: MC Page Ref: 279-280 Skill: Application Objective: 8-1
1) Which of the following best describes what a brand is? A) a physical product B) a specialty product C) an SBU D) a corporate identity E) a concept
Answer: E Diff: 3 Type: MC Page Ref: 322 Skill: Concept Objective: 9-1
24) Which of the following statements about a break-even chart is true? A) It is used to determine how the customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It shows the level of earnings a company has during an accounting period. D) It is a tool marketers use to examine the relationship between supply and demand. E) It uses variable costs, the unit price, and fixed costs.
Answer: E Diff: 3 Type: MC Page Ref: 359-360 Skill: Concept Objective: 10-1
79) At Finley's Fine Goods, members of the sales force and marketing department tend to have disagreements when things go wrong with a customer. The marketers blame the salespeople for poorly executing their strategies, while the salespeople blame the marketers for being out of touch with the customer. Which of the following steps should upper-level management at Finley's Fine Goods take to help bring the sales and marketing functions closer together? A) Establish a customer sales force structure. B) Establish a complex sales force structure. C) Create an inside sales force. D) Adopt a sales force automation system. E) Employ a high-level marketing executive to oversee the marketing and sales teams.
Answer: E Diff: 3 Type: MC Page Ref: 512 Skill: Application Objective: 14-1
34) Which of the following is an advantage created by a sales force automation system? A) lower costs for training sales personnel B) increased motivation to acquire new customers C) decreased need for an inside sales force D) stronger organizational climate developed by the sales team E) more efficient scheduling of sales calls and sales presentations
Answer: E Diff: 3 Type: MC Page Ref: 519 Skill: Concept Objective: 14-2
