CHAPTER 1 1) In response to needs at homeless shelters, Bombas introduced a buy-one-give-one program for A) feminine products. B) 100-calorie snack packs. C) winter coats. D) socks. E) button-down shirts.
2) they
In addition to the give-back program, Bombas socks are attractive to consumers because
A) are made entirely of natural and vegan ingredients. B) are among the least expensive products available. C) have been engineered for superior comfort. D) are conveniently sold in mass merchandise stores like Walmart and Target. E) are considered the most fashion-forward in the category.
3) Bombas has a social mission to help homeless shelters with its buy-one-give-one program. The company name comes from the Latin for A) "comfort," the primary point of difference for its products. B) "bumblebee," because of the creature's association with working together. C) "cotton," the main ingredients in its products. D) "service," the central focus of the business. E) "antelope," because of its speed and agility.
4)
Which statement about marketing is most accurate?
Version 1
1
A) Unless you take a marketing class, you will never truly know anything about marketing. B) Marketing is nothing more than common sense. C) Marketing requires an innate sense of creativity; you either have it or you don't. D) You can call yourself a marketing expert only if you have sold something for a profit. E) You have significant marketing expertise since you make marketing-related decisions every day.
5)
Elon Musk was involved in the inception of all of these companies except which? A) SpaceX B) PayPal C) Tesla D) Facebook E) Neuralink
6)
Marketing refers to the
A) research and development of new products that existing customers want to purchase. B) expansion of companies into other countries. C) process of identifying the best local plants to serve particular geographic markets. D) activity involved in getting a product or service from the manufacturer to the ultimate consumers and organizational buyers. E) activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
7) The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is referred to as
Version 1
2
A) manufacturing. B) advertising. C) marketing. D) selling. E) promotion.
8)
All of these are true about marketingexcept which?
A) Marketing is a broader activity than advertising. B) Marketing stresses the importance of delivering genuine benefits in the offerings of goods, services, and ideas sold to customers. C) Successful marketing usually results in one "winner" and one or more "losers." D) When an organization engages in marketing, it should also create value for its partners and society. E) Marketing is a broader activity than personal selling.
9) What do an organization's stockholders, its suppliers, its employees, its customers, and society at large all have in common with regard to an organization? A) All should benefit from the marketing of an organization's offering. B) Everyone has a say in the ultimate design of a product. C) Everyone is legally culpable if something goes wrong with a product. D) All have to make some type of direct financial investment in the organization so it can profitably sell its products. E) All use the products and/or services marketed by the organization.
10) Mizuno designs and sells high-quality baseball gloves. Who likely benefits from the firm's marketing activities for its gloves?
Version 1
3
A) a baseball or softball player who purchases a new Mizuno glove B) the Dick's Sporting Goods salesperson who sells a customer a Mizuno glove C) the supplier who provided the leather to Mizuno D) the shareholders of Mizuno, the company that designs and manufactures the gloves E) all stakeholders, even society at large
11) To serve both buyers and sellers, marketing seeks to__________Blank and satisfy the needs and wants of prospective customers. A) change B) create C) align D) discover E) compare
12) To serve both buyers and sellers, marketing seeks to discover and________Blank the needs and wants of prospective customers. A) change B) satisfy C) rank D) align E) preserve
13) Whether an individual is considering a purchase for personal or household use, or an organization is buying for its own use or for resale, the individual or organization would be considered a(n)
Version 1
4
A) prospective customer. B) dual-purpose marketing decision maker. C) potential distributor. D) informed buyer. E) end user.
14) A student wants to buy a smartphone so she can share pictures with her friends. An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate? A) The adjuster is a prospective customer because the smartphone will be used for work; the student is only a secondary user since the purpose of the smartphone is just for entertainment. B) Both the adjuster and the student are prospective customers because, in their own ways, they both benefit from the smartphone. C) Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster's smartphone and the student's parents will pay for hers. D) The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying smartphones for business use. E) Only a person who has bought a smartphone previously is a prospective customer because only previous owners of smartphones benefit from buying new ones.
15) The PAL-V Liberty is a two-seat, gas-powered gyrocopter with a flying range of about 250 miles at maximum weight. In car mode, the three-wheeled vehicle can hit 100 mph. Its maker is seeking safety certification in Europe, and 90 initial production models are now for sale starting at $399,000. The most likely prospective customers for this flying car would include
Version 1
5
A) students who attend college at least 500 miles away from home. B) retired seniors receiving Social Security. C) executives for whom time is extremely important. D) teens who like to try new things. E) families in need of a second vehicle.
16)
In marketing, the idea of exchange refers to the A) negotiation phase between the manufacturer and the seller. B) financial remuneration (monetary payment) for a product or service. C) trade of things of value between buyer and seller so that each is better off after the
trade. D) bartering of products and services between nongovernmental organizations or individuals. E) practice of swapping products and services for other products and services rather than for money.
17) The trade of things of value between buyer and seller so that each is better off after the trade is referred to as A) financial remuneration. B) exchange. C) countertrade. D) barter. E) marketing.
18) The American Red Cross creates advertisements to encourage people to donate blood. After viewing one, Jun decided to donate a pint of blood. After she did, Jun felt happy that she had done something nice for her community. Did an exchange occur in a marketing sense?
Version 1
6
A) Yes, because the blood was donated to the Red Cross based on an advertisement, a marketing activity. B) Yes, because the donated blood was exchanged for a feeling of satisfaction. C) No, because the Red Cross is a nonprofit organization. D) No, because no money changed hands. E) No, because the Red Cross, a service organization, did not provide Jun with a product.
19) A local college of business offers an outstanding graduate business school education program. Maria pays the tuition to attend and earns her MBA with a concentration in marketing management. Upon graduating, she is offered a high-paying, fulfilling position. Was this a marketing exchange? A) No, because the university earned a profit from Maria's tuition. B) No, because money was exchanged in the form of tuition and Maria's income will come from her employer, not the graduate school. C) No, because the school did not provide Maria with a tangible product, only the potential of an education. D) Yes, because the university promised Maria she would graduate on time, and she did. E) Yes, because paying tuition was exchanged for knowledge that directly led to Maria's high-paying, fulfilling new job.
20) A typical marketing department both shapes and________Blank its relationship with internal and external groups. A) is shaped by B) organizes C) directs D) determines E) dominates
Version 1
7
21)
________Blank responsible for establishing the organization's mission and objectives. A) Marketers are B) Suppliers are C) Customers are D) Senior management is E) Shareholders are
22) One challenge faced by organizations is the need to focus on consumer needs while also________Blank the interests of countless other people, groups, and forces that interact to shape the nature of its actions. A) resisting B) balancing C) developing D) guaranteeing E) minimizing
23)
Which statement about marketing activities is most accurate?
A) Marketing is affected by society but rarely, if ever, affects society as a whole. B) The marketing department both shapes and is shaped by its relationship with internal and external groups. C) Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall). D) Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research. E) Marketing is essentially developing the right product and convincing potential customers that they "need" it, not just "want" it.
24)
All of these are departments within a typical organizationexcept which?
Version 1
8
A) finance B) manufacturing C) information technology D) human resources E) shareholders
25) The________Blank department of an organization is responsible for facilitating relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations. A) purchasing B) marketing C) human resources D) accounting E) information systems
26)
The marketing department of an organization is responsible for facilitating
A) relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations. B) healthy competition with other product manufacturers. C) financial contracts with banks and other lending institutions. D) alliances with firms with noncompetitive products that target similar markets. E) the coordination between the various departments within the entire firm.
27)
Which statement about marketing departments is most accurate?
Version 1
9
A) The marketing department typically works as an independent unit, mostly interacting with other parts of the business only to direct product promotion. B) The marketing department should suggest where a firm should invest its money based on its knowledge of the market and environmental forces. C) The marketing department is only responsible for two of the four Ps. D) The marketing department is only responsible for market research, supervision of product development, and product promotion. E) The marketing department must work closely with other departments and employees to help provide products that satisfy customers.
28)
All of these are environmental forces that affect an organizationexcept which? A) competitive B) structural C) social D) regulatory E) technological
29)
Which statement about marketing activities is most accurate?
A) Marketing is affected by society but rarely, if ever, affects society as a whole. B) The marketing department works closely with other departments and employees to implement marketing activities. C) Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall). D) Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research. E) Marketing directs the activities of all other departments in a business.
30)
All of these are factors required for marketing to occurexcept which?
Version 1
10
A) a desire and ability on the part of two or more parties (individuals or organizations) to be satisfied B) something to exchange between two or more parties (individuals or organizations) C) two or more parties (individuals or organizations) with the same wants D) two or more parties (individuals or organizations) with unsatisfied needs E) a way for the parties (individuals or organizations) to communicate
31)
Which factor is required for marketing to occur? A) a healthy competitive environment B) an affordable and actionable advertising campaign C) a sense of social responsibility D) an ability to see hidden potential within an environmental force E) something to exchange
32)
Which conditions are necessary for marketing to occur?
A) a changing environment, a method of assessing needs, a way to communicate, and an exchange location B) parties with cash or credit, a product, a reasonable price, and a place to make an exchange C) a quality product, a fair price, a clever method of promotion, and a place where a customer can buy the product D) two or more parties with unsatisfied needs, a desire and an ability to satisfy them, a way to communicate, and something to exchange E) an ability to see a trend within an environmental force, a product, and an affordable and actionable advertising campaign
Version 1
11
33) For marketing to occur, there must be two or more parties involved. Keurig Dr. Pepper distributes Bai Antioxidant Infusions through supermarkets at a price comparable to other specialty bottled or canned drinks. The most likely "second" party needed for marketing to occur would be A) people who are nostalgic about childhood drinks they had during hot summers. B) people with a desire for a cool beverage other than soda or water. C) product demonstrators who offer samples of Bai products to shoppers at local supermarkets. D) a local distributor of alcoholic beverages. E) a nutritionist promoting the health benefits of adequate hydration.
34) A business student is preparing for the Graduate Management Admission Test (GMAT) so he can get into a good graduate business school. He believes that any money he spends on a tutor will be worthwhile if he can improve his scores. He's heard that there is a great tutor in his local community but has no idea who she is. Marketing does not occur in this situation because A) two or more parties have satisfied needs. B) there is no desire on the part of either party to satisfy its needs. C) both parties are not aware that a need for tutoring exists. D) there is no way for each party to communicate with one another. E) there has been no assessment of consumer wants and needs.
35) A student would like to buy a hybrid SUV from a local dealer, but she thinks the payments will be too high. Marketing does not occur in this situation because A) two or more parties have unsatisfied needs. B) there is no desire on the part of either party to satisfy its needs. C) one of the involved parties does not have the ability to satisfy its needs. D) there is no way for each party to communicate with one another. E) there has been no assessment of consumer wants and needs.
Version 1
12
36) Lou has a medical condition that interferes with restful sleep. Though he has been to the doctor frequently about the issue, no treatments or medications are available that would be helpful to him. Here, no marketing occurs because A) the doctor does not have unsatisfied needs. B) the doctor cannot offer a viable product for exchange. C) marketing is illegal in the pharmaceutical industry. D) the doctor and patient are unable to communicate. E) Lou is unable to afford his medications.
37) A local candidate running for office would very much like to have your vote. She promises that she will "make the country better." Because all candidates for public office say this, you doubt you'll see real results and decide not to vote for her. Marketing will not occur in this situation because A) marketing doesn't apply to the voting process. B) the desire and ability to satisfy needs is missing. C) there is no direct way for the parties to communicate. D) something to exchange is missing. E) there is only one party involved in this situation.
38) The Arizona Biltmore in Phoenix is a resort hotel located less than a mile from the Biltmore Fashion Park, a large upscale shopping mall. The hotel wants to promote its proximity to the shopping center as well as its many other amenities to convention-goers from other states. Which marketing action would most likely help the Arizona Biltmore communicate with potential convention attendees?
Version 1
13
A) Place an ad in the in-flight magazines of all the major airlines targeting business/firstclass fliers. B) Send a mass mailing to all local businesses. C) Set up information kiosks at several locations within the Biltmore Fashion Park. D) Offer free made-to-order breakfasts for guests staying at the hotel on business. E) Offer special discount rates to guests coming from the East Coast.
39) A farmhand would like to buy a moped scooter to commute to his job at a nearby ranch. He doesn't know how to find a dealer though, and he doesn't have Internet access. Which reason explains why marketing fails to occur here? A) There are no parties with unsatisfied needs. B) A desire to satisfy a need is missing. C) No assessments of consumer wants and needs have been made. D) There is no way for the parties involved to communicate. E) The ability to satisfy a need is missing.
40) Suppose you want a snack after taking this exam. Domino's is located across the street from your College of Business classroom. Unfortunately, you forgot your wallet in the haste of getting to class on time to take the test. Therefore, you have no means to pay for the pizza. What explains why marketing fails to occur between you and Domino's? A) There is only one party with unsatisfied needs. B) The ability to satisfy a need is missing. C) A desire to satisfy a need is missing. D) No assessments of consumer wants and needs have been made. E) There is no way for the parties involved to communicate.
41) Sachin receives a coupon on his iPhone advising him about the location of a Taco Bell store in his area. This is an example of which requirement for marketing to occur?
Version 1
14
A) demonstrating an unmet need B) discovering a consumer need C) a foundation for brand loyalty D) a way for parties to communicate E) practicing ethics and sustainability
42) Conducting marketing research is an excellent way to address the first objective in marketing, which is to discover consumers' A) diversity of opinion, to create persuasive advertising messages. B) income, to determine the most lucrative price point for a product. C) lifetime value of an offering to the organization. D) characteristics that would be useful to identify market segments. E) needs, to create products that could satisfy them.
43)
Marketers often discover consumer needs by A) implementing a marketing program. B) conducting effective marketing research. C) balancing the marketing mix elements—the four Ps of the marketing program. D) advertising to diverse groups of prospective buyers. E) copying the products and services of competitors.
44) Crowdsourcing has been an important method of identifying consumer needs for which of these products?
Version 1
15
A) Amazon Echo B) Pepsi True C) LEGO Women of NASA D) Google Glass E) ZipCar
45) Studies of new product launches indicate that about__________Blank percent of the products fail. A) 33 B) 40 C) 67 D) 75 E) 90
46)
To avoid new-product failure, new-product expert Robert M. McMath suggests
A) implementing a regional rather than a nationwide rollout of a new product. B) building a hierarchical organizational structure so that more people have a chance to spot product problems. C) focusing on customer benefits and learning from the past. D) increasing the marketing budget, since "success comes to those who can outspend the competition." E) releasing several different versions of a new product at the same time to see which one is most successful.
47) If you followed the suggestions of Robert M. McMath, which of these provides the best advice for a marketer for Colgate, when launching a new version of the toothpaste?
Version 1
16
A) Anticipate the future five years out in terms of product form, ingredients, and packaging—to invent the "toothpaste of tomorrow!" B) Give the product a mysterious name that is unrelated to the product's benefits but instead provokes consumer curiosity. C) Initiate a Facebook campaign against beverages sweetened with high fructose corn syrup, which can contribute to tooth decay. D) Create unusual packaging that has special shelving requirements. E) Study past toothpaste product failures and learn from them.
48)
A factor that might doom a product in the marketplace is referred to as A) an albatross. B) a land mine. C) a pitfall. D) a showstopper. E) a wild card.
49)
In product development, showstoppers refer to
A) creative or innovative members of a marketing team. B) unexpected alternative uses for a product that result in a sudden increase in sales. C) factors that might doom a product in the marketplace. D) a sudden loss of financial backing even though the item is in production. E) situations when a competitor's product suddenly beats a firm's new product to the marketplace.
50) Concerns about privacy might have been a reason for lackluster sales of which of these products?
Version 1
17
A) Amazon Prime B) Google Glass C) Apple Newton Message Pad D) YoYo car subscriptions E) AirBnB rentals
51) In light of new Nutrition Fact label requirements that took effect in 2020, Coca-Cola is testing Coca-Cola Stevia which will be sweetened only with the natural ingredient stevia. A potential showstopper for this product is likely to be A) a lack of advertising on television. B) previous products with stevia sweetener had a bitter aftertaste. C) a lower profit margin due to the added costs of expensive ingredients. D) cannibalization of the company's existing sodas. E) pressure from the cane sugar and corn industries.
52) A________Blank occurs when a person feels deprived of basic necessities such as food, clothing, and shelter. A) desire B) need C) utility D) want E) craving
53) A want is________Blank that is shaped by a person's knowledge, culture, and personality.
Version 1
18
A) a desire B) a need C) a utility D) a demand E) an option
54)
A need that has been shaped by a person's knowledge, culture, and personality results in a A) standard. B) want. C) utility. D) demand. E) preference.
55) Steve wants to eat a Cool Mint Chocolate Clif Bar because, based on his past experience, he knows it will satisfy his hunger A) preference. B) need. C) utility. D) perception. E) expression.
56)
A need refers to a
Version 1
19
A) sense of personal inadequacy based upon observations by others around you. B) sense of urgency, which causes a person to take action. C) feeling that is shaped by a person's knowledge, culture, or personality. D) feeling of vague lacking, but not fully understanding what may be required. E) feeling of deprivation of basic necessities such as food, clothing, and shelter.
57) All of these are examples of products or services that satisfy a consumer needexcept which? A) a pair of socks B) an apple C) a student dormitory D) a sales tax E) a jacket
58)
Which statement best distinguishes between consumer needs and wants?
A) Needs are far more influential than wants with respect to marketing decision making. B) Wants affect marketing decisions primarily for planned purchases while needs affect marketing decisions primarily for impulse purchases. C) Wants occur when a person feels deprived of luxury items while needs are solely possessions required to maintain relationships. D) Needs and wants are psychologically the same, but needs are those that a consumer can be guaranteed to satisfy. E) Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter while wants are determined by a person's knowledge, culture, or personality.
59)
A want refers to a
Version 1
20
A) sense of personal inadequacy based upon observations by others around you. B) powerful desire that causes a person to take action. C) need that is shaped by a person's knowledge, culture, or personality. D) feeling of being deprived of something, but not fully understanding what it may be. E) feeling of deprivation of basic necessities such as food, clothing, and shelter.
60) A television advertisement shows several teenagers searching through the pantry for something to satisfy their hunger. The pantry offers the teenagers many alternatives—cereal, chips, cookies, and some Cool Mint Chocolate Clif Bars. The ad, which shows the teens happily selecting the Clif Bars, appeals to the consumers'________Blank for sustenance to satisfy their hunger and attempts to shape their________Blank for the advertised product. A) needs; wants B) requirements; needs C) wants; preferences D) demands; needs E) preferences; enthusiasm
61)
In a marketing context, a market refers to A) people with a similar want for a particular product or service. B) people with both the desire and ability to buy a specific offering. C) the central location for all buying and selling of products and services. D) an open space or covered building where vendors convene to sell their offerings. E) the free operation of supply and demand.
62)
People with both the desire and ability to buy a specific offering are referred to as
Version 1
21
A) shoppers. B) a customer base. C) a market. D) qualified prospects. E) candidates.
63)
All markets ultimately are composed of A) people. B) brands. C) products. D) organizations. E) locations.
64) The best description of the market for cosmetic dentistry, where costs can be as much as $15,000 for teeth straightening and whitening, is A) toddlers with crooked baby teeth, when crooked teeth run in the family. B) all former smokers who have been smoke-free for at least one year. C) anyone who has the time, the money, and the desire to undergo the procedures. D) anyone who has dental insurance. E) adults who want to make a good first impression for an event.
Version 1
22
65)
In Figure 1-3, "A" represents ________Blank and "B" represents
A) decisions by management; purchases by customers B) employees efforts; stakeholder rewards C) sales department; manufacturing department D) suppliers; distributors E) discovering consumer needs; satisfying consumer needs
66)
Discovering consumer needs leads directly to A) purchases by customers. B) stakeholder rewards. C) sales and manufacturing department outcomes. D) supplier and distributor outcomes. E) concepts for new products.
67)
Satisfying consumer needs is accomplished by
Version 1
23
A) implementing a marketing program. B) conducting marketing research. C) discovering consumer needs. D) developing a distribution strategy. E) identifying target markets.
68)
Product, price, promotion, and place are all components of A) the firm's required ongoing activities. B) the marketing mix. C) factors used to examine competitors' products. D) the cluster of benefits that an organization develops to satisfy consumers' needs. E) people with both the desire and the ability to buy a specific offering.
69)
A target market is defined as
A) customers who have already purchased a firm's product at least once, have been satisfied, and are likely to be repeat purchasers. B) both existing and potential customers who have used a competitor's product, are dissatisfied, and who now seek a different product or service to satisfy their needs. C) a specific group of current consumers toward which an organization directs its advertising. D) existing or potential consumers who are seeking a product for which there are no current substitutes. E) one or more specific groups of potential consumers toward which an organization directs its marketing program.
70) One or more specific groups of potential consumers toward which an organization directs its marketing program is referred to as a________Blank market.
Version 1
24
A) mass B) base C) potential D) target E) promotional
71) Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese. Other items in the product line contain small bottles of Chiquita Strawberry Banana Fruit smoothie, Capri-Sun juice, or Kool-Aid. The box is bright yellow and the quantity of food contained within it is small. The target market for Kraft Lunchables is most likely A) parents with school-age children who pack a simple, easy lunch for them. B) business people looking for a satisfying breakfast at the office. C) business travelers on the run. D) teenagers who have missed a meal for after-school activities. E) baby boomers who are trying to lose weight.
72) Which people would most likely be the best target market for tickets to the home games of the Indianapolis Colts professional football team? A) all people with an interest in professional football B) all people in the Midwest who have an interest in sports C) all men who played on a varsity football team in high school D) all people in the Indianapolis and surrounding areas interested in football E) all people in Indiana who watch football on TV
73) Which group would be theleast likely target market for a company producing canned food in single-serving sizes?
Version 1
25
A) single adults B) school kitchens C) campers D) senior citizens E) vending machine owners
74) TUMI brand briefcases are very expensive, high-end briefcases that are generally sold in specialty luggage shops. Which group of people would be the most likely target market for TUMI briefcases? A) police officers B) executives C) construction workers D) massage therapists E) students
75) The United States Army was both praised and criticized for its use of a popular video game, America's Army, which was designed to reach potential recruits. The game's creator, Colonel Casey Wardynski, wanted to provide a sense of the training and teamwork one could find in the Army's military environment. The game was designed for "boys 14 years or older," which represent the Army's A) mass market. B) actual recruits. C) restricted market. D) target market. E) untapped market.
Version 1
26
76) A local university offers business courses for a target market of people who currently work and want to take refresher courses for certification in their business field (marketing, accounting, etc.). What would be the most effective way to communicate with the target market, bearing in mind that communication must be both effective and economical? A) Put announcements on campus bulletin boards. B) Distribute promotional materials during classes. C) Advertise on national television. D) Advertise on local hip-hop radio shows. E) Advertise on LinkedIn, a social media network for professionals.
77) The marketing manager's controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem are referred to as A) the marketing concept. B) the marketing mix. C) the marketing program. D) environmental forces. E) the marketing toolbox.
78)
The marketing mix refers to
A) the selection of product benefits and attributes that are to be added to or subtracted from a given product to create variations within a product line. B) the specific ratio within a budget that divides resources between advertising, sales promotion, and personal selling. C) the marketing manager's controllable factors—product, price, promotion, and place— that can be used to solve a marketing problem. D) the allocation of resources within a firm toward individual marketing programs. E) the environmental forces—social, economic, technological, competitive, and regulatory—that impact the marketing decisions for a particular product at any given time.
Version 1
27
79)
Which would a marketer use as a synonym for the marketing mix? A) the four Ps of marketing B) environmental forces C) macromarketing forces D) marketing management factors E) micromarketing factors
80)
The four Ps of the marketing mix are A) priorities, personnel, placement, and profits. B) prediction, production, price, and promotion. C) product, price, production, and place. D) product, price, promotion, and place. E) prediction, production, packaging, and persuasion.
81)
All of these constitute the four Ps of the marketing mixexcept which? A) promotion B) profitability C) price D) place E) product
82)
The four Ps are commonly known as
Version 1
28
A) the environmental or uncontrollable forces. B) the environmental or controllable factors. C) the marketing mix or controllable factors. D) the marketing mix or uncontrollable forces. E) environmental factors, both controllable and uncontrollable.
83) The marketing mix elements are called__________Blank because they are the responsibility of the marketing department in an organization. A) administrative forces B) profitability drivers C) stakeholder value generators D) target market segments E) controllable factors
84) Jakubowski Farms Gourmet Bread Base is the brand name for a mix designed for use in bread making machines. The mixes are sold in 2-pound canisters for $14.99 plus shipping. People learn about the product through word of mouth and bread machine demonstrations the company's founder gives to groups in Wisconsin, where she lives. The products are only available online at the company's website. This is a description of the company's A) action plan. B) market segmentation strategy. C) mission statement. D) marketing mix. E) target market.
85) The element of the marketing mix that describes a good, service, or idea to satisfy consumers' needs is known as
Version 1
29
A) the product. B) the industry. C) promotion. D) the place or distribution. E) a market segment.
86) The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used for the old-fashioned cookies the company produces and markets. The cookies represent which part of the company's marketing mix? A) process B) price C) product D) place E) people
87) The element of the marketing mix that describes what is exchanged for a product is known as A) a product. B) the price. C) promotion. D) the place or distribution. E) profit.
88) Which element of the marketing mix is affected when the Mandarin Oriental hotel in New York increases its weekend rates to $795 per night?
Version 1
30
A) product B) price C) promotion D) place E) production
89) The element of the marketing mix demonstrated when an art gallery suggests a $2 donation at the door is A) philanthropy. B) place. C) product. D) promotion. E) price.
90) To attend a winter concert presented by the community chorus, every attendee was asked to donate one unwrapped toy at the concert hall door. The donation is most closely related to the________Blank element of the marketing mix. A) product B) philanthropy C) price D) place E) promotion
91) The element of the marketing mix that describes a means of communication between the seller and buyer is known as
Version 1
31
A) a product. B) promotion. C) the price. D) the place or distribution. E) advertising.
92) The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes for the heritage products they market. An offer to be featured in an upcoming edition ofTaste of Home magazine would be considered part of the________Blank element of the marketing mix. A) product B) price C) persuasion D) promotion E) place
93) The________Blank element of the marketing mix is demonstrated when a company runs a video advertisement on Hulu. A) product B) price C) promotion D) place E) process
94) When a company uses advertising on Instagram, this tactic is part of the________Blank element of the marketing mix.
Version 1
32
A) product B) price C) promotion D) place E) process
95) The element of the marketing mix that describes a means of getting the product to the consumer is known as A) a product. B) the price. C) promotion. D) the place. E) the process.
96) The________Blank element of the marketing mix is demonstrated when Amazon delivers packages to a customer's front porch via its own drivers and fleet vehicles. A) place B) product C) price D) promotion E) procurement
97) The ability to buy an energy drink from a vending machine demonstrates which element of the marketing mix?
Version 1
33
A) product B) price C) promotion D) place E) process
98) The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as A) the Five Fs of marketing. B) environmental forces. C) business conditions. D) a marketing ecosystem. E) the business sphere.
99)
Which of these isnot an environmental force? A) technological B) regulatory C) administrative D) competitive E) economic
100)
In marketing, environmental forces refer to
Version 1
34
A) the internal strengths of a company that enable the firm to remain competitive. B) the marketing manager's uncontrollable factors-product, price, promotion, and placethat can be used to solve marketing problems. C) the unpredictable or uncontrollable availability of natural resources that can enhance or restrain a company's growth. D) the marketing manager's uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces. E) the marketing manager's controllable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.
101)
The five major environmental forces affecting marketing decisions are
A) climate change, natural resources, pollution, natural disasters, and global conflict. B) social, technological, economic, competitive, and regulatory. C) corporate ownership, internal management, supplier partnerships, strategic alliances, and customer relationships. D) product, price, promotion, place, and people. E) ethics, sustainability, cultural awareness, diversity, and values.
102)
Which statement about environmental forces is most accurate?
A) Environmental forces are almost always controllable if the marketing department correctly scans them. B) An organization that incorporates the marketing concept can exert just as much influence on environmental forces as they can exert on that organization. C) Environmental forces consistently result in negative outcomes for an organization. D) Some environmental forces can actually enhance a firm's marketing opportunities. E) Environmental forces can almost always be predicted.
103)
Which statement describes an environmental force?
Version 1
35
A) Several states have legislation that requires people transporting children to use ageand height-appropriate car seats. B) A direct sales cosmetic company has more than 200,000 independent dealers who market its entire product line. C) A car battery comes with a lifetime guarantee. D) An automobile dealer offers a $500 rebate during the month of July. E) A major bottler offers a 10-cent refund on returnable bottles.
104) The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and before- and after-sale service at a specific price is called A) customer value. B) target marketing. C) benefit proposition. D) value-based marketing. E) a customer value proposition.
105)
Customer value refers to A) the need of a customer to receive the highest-quality product at the lowest possible
price. B) the least expensive product that will provide customers with most of the basic benefits. C) a statement that, before product development begins, identifies a well-defined target market; specific customers' needs, wants, and preferences; and what the product will be and do to satisfy consumers. D) the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. E) the cluster of benefits that an organization promises customers to satisfy their needs.
Version 1
36
106)
Which statement about customer value is most accurate?
A) Target customers assess customer, regardless of the price. B) Loyal customers are less profitable to firms in the long run since they expect lower prices over time in order to remain loyal. C) Research suggests that firms can be most successful by being all things to all consumers. D) It is impossible to place a dollar value on a loyal, satisfied customer. E) By providing unique value for targeted buyers, firms can build long-term relationships with them.
107)
According to the text, Target has been successful by offering consumers the best A) experience. B) products. C) customer service. D) availability. E) price.
108)
According to the text, Starbucks provides its customers with the best A) branding. B) products. C) price. D) customer service. E) availability.
109) If a bank is known for delivering customer value through its focus on taking great care of customers, it is most likely focusing on providing its customers with the best
Version 1
37
A) assortment. B) products. C) price. D) customer service. E) availability.
110) Those who have flown on Singapore Air have experienced firsthand the great food that is served during the flight, the friendliness of the flight attendants, and the comfortable seating. Singapore Air creates customer value by providing its customers with A) the best airport experience. B) the most convenient flight schedules. C) the best price for the distance traveled. D) the best in-flight service. E) the greatest sense of personal safety.
111)
Relationship marketing refers to
A) the selection and the assignment of a firm's personnel for a specific product or product line to a group of current or prospective customers. B) the belief that it is easier and less expensive to find new customers than to retain old ones. C) the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. D) the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. E) exclusive legally binding contractual agreements between retailers and customers in order to create enhanced value for each party.
Version 1
38
112) The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit is referred to as A) relationship marketing. B) exclusive dealing. C) loyalty marketing. D) customer relationship management. E) symbiotic marketing.
113)
Which statement about relationship marketing is most accurate?
A) Relationship marketing has a short-term focus: increasing profits for the firm. B) Relationship marketing prevents the need to offer unique value to customers. C) Relationship marketing provides benefits for both customers and the organization. D) Very few companies today are engaged in relationship marketing. E) The Internet almost always has a negative impact on a firm's personal relationships with customers.
114) In the performing arts world, Tessitura uses box office technology to track every patron transaction, including ticket purchases, fund-raising, volunteering, and gift shop purchases, in one database. The information can help symphonies, operas, and theaters develop customer profiles to tailor sales messages to specific individuals. Tessitura will allow arts groups to engage in A) market aggregation. B) relationship marketing. C) societal marketing. D) market mining. E) mainstream marketing.
Version 1
39
115) NYX Cosmetics sent packages to YouTube influencers to unbox on their channels and created a contest to select its Beauty Vlogger of the Year. NYX's FACE Awards flew 6 finalists to Los Angeles to present one of their videos live at the award show. This is an example of A) supplier management. B) customer valuation. C) societal marketing. D) market aggregation. E) relationship marketing.
116) A business traveler joined the Starwood Preferred Guest Program in order to earn points each time she stayed overnight in a Westin or Sheraton hotel. Once she has accumulated enough points, she can trade in his points for a free night's stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. For Starwood, this scenario is best described as A) relationship marketing. B) customer satisfaction promotion. C) customer segmentation. D) customer valuation. E) supplier-consumer partnership.
117)
A marketing program refers to
Version 1
40
A) a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. B) the selection of product benefits and attributes that are added to or subtracted from a given product to create variations within a product line. C) the marketing manager's controllable factors—product, price, promotion, and place— that can be used to solve a marketing problem. D) the specific ratio within a marketing budget that divides resources between advertising, promotions, and personal selling. E) the allocation of resources within a firm toward individual marketing mix elements.
118) A________Blank is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. A) marketing strategy B) marketing program C) macromarketing tactic D) micromarketing tactic E) customer relationship profile
119) After an assessment of needs, a marketing manager must translate ideas from consumers into concepts for products that a firm may develop. The concepts must then be converted into a tangible A) mission statement. B) macromarketing agenda. C) micromarketing agenda. D) marketing program. E) marketing concept.
120)
Market segments refer to
Version 1
41
A) the relatively heterogeneous groups of prospective buyers that result from the market segmentation process. B) all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future. C) the smallest number of buyers that have similar needs but do not react similarly in a buying situation. D) the relatively homogenous groups of prospective buyers that have common needs and will respond similarly to a marketing action. E) all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.
121) In marketing, each________Blank consists of people who are relatively similar to each other in terms of their consumption behavior. A) market segment B) demographic cluster C) organizational buyer group D) ultimate consumer group E) qualified prospect group
122) An inventor for 3M, David Windorski, and a team of four college students, questioned students about how they study. The students told the research team A) that Scotch tape had outgrown its usefulness to students. B) to make new products that were more environmentally friendly. C) that the average backpack was already too heavy. D) that it would be reasonable to put Post-it Flags together with a highlighter. E) to determine the ratio of sales of 3M products to those of competitors' study aid products.
Version 1
42
123)
The purpose of the introduction of 3M Post-it Flag Highlighters was to
A) stay ahead of trends and focus its marketing program on only one segment. B) stay ahead of trends and focus its marketing program on expanding distribution. C) increase production economies of scale by reducing manufacturing and marketing costs for Post-it Flags and Post-it Notes. D) preempt a competitive move by Sanford's Sharpie to introduce a similar product. E) help college students with their studying.
124) Which statement about 3M's marketing program for Post-it Flag Highlighters and Post-it Flag Pens is most accurate? A) In his first attempt, David Windorski, a 3M inventor, designed the Post-it Flag Highlighter in exactly the right way to appeal to its target market. B) Paralegals were initially the intended target market for the Post-it Flag Highlighter. C) David Windorski, a 3M inventor, developed the Post-it Flag Pen for the office worker segment. D) The Post-it Flag Highlighter was not successful and was deleted from the Post-it Flag product line. E) In development of the Post-it Flag Highlighter, David Windorski examined similar products of 3M's major competitors and simply made changes that would provide the "wow" factor.
125)
The pricing strategy for 3M's Post-it Flag Highlighters was to
A) match its principal competitors' highlighters' prices. B) charge a price that would be reasonable for the target customer segment and provide a profit to distributors and itself. C) set an initially low price with the intent of bringing down the price even further later if sales were less than anticipated. D) place the product in discount office supply retailers to make it easier to purchase. E) use the same pricing strategy as its 3M's Post-it Flag and Post-it Note offerings.
Version 1
43
126) The 3M Post-it Flag Highlighter and Pen marketing programs discussed in the text were designed for what primary objective? A) the initial launch of two new 3M products B) specific promotions to be used for long-range strategies C) segmenting the market into 12 specific target market segments D) marketing 3M products to foreign markets E) positioning the products relative to major competitors
127) The place strategy in 3M's marketing program made it convenient for________Blank to buy Post-it Flag Highlighters and Post-it Flag Pens. A) external salespeople only B) college students only C) office workers only D) college students and office workers E) teachers only
128) Based on the marketing program 3M developed for its Post-it Flag Highlighters and Postit Flag Pens, one can conclude that A) the market segments for Post-it Flag Highlighters and Post-it Flag Pens are identical. B) the market segments for Post-it Flag Highlighters and Post-it Flag Pens are not realistic. C) the Post-it Flag Highlighters and Post-it Flag Pens are priced unreasonably for the target markets. D) the prices for 3M's Post-it Flag Highlighters and Post-it Flag Pens are set to maximize 3M's profits, not its distributors' profits. E) the promotion strategy is designed to increase awareness among potential users.
Version 1
44
129) With respect to the history of American business, the________Blank era covered the early years of the United States up until the 1920s. A) ales B) marketing concept C) customer relationship D) market orientation E) production
130) If you wanted a new pair of shoes during the Civil War, you traced the outline of your foot on a piece of paper and gave it to a shoemaker. There was no distinction between the right and left foot because you wanted your shoes as quickly as possible, and the shoemaker knew that you would buy them even if they just "sort of" fit. This is an example of a transaction that would have occurred during the________Blank era in U.S. business history. A) marketing concept B) sales C) production D) social entrepreneurship E) market orientation
131) With respect to the history of American business, the________Blank era covered the years from the 1920s to the 1960s. A) production B) sales C) marketing concept D) customer relationship E) market orientation
Version 1
45
132) The period of American business history when firms could produce more goods than they could sell and the focus was on hiring more salespeople to seek out new customers is referred to as the________Blank era. A) sales B) marketing concept C) production D) goods E) market orientation
133) Shortly after World War II, John Jackson developed and began selling a machine lubricant that was superior to anything currently on the market. While demand kept up with production at first, several strong competitors added new products and he soon had to hire a sales force to sell excess product to manufacturing companies in the area. This is an example of marketing behavior that would occur during the________Blank era of U.S. business history. A) marketing concept B) production C) goods D) sales E) social entrepreneurship
134) In the movieTin Men, two rival salesmen engaged in a variety of dishonest and unethical practices in order to sell aluminum siding to homeowners in 1963. Their job was difficult, in part, because the supply of aluminum siding surpassed the demand for the product and competition was intense. This situation is indicative of the________Blank era of U.S. business history.
Version 1
46
A) goods B) sales C) production D) market orientation E) societal marketing
135) Imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S. business history). Which statement would youmost likely expect management to make if sales of this new candy bar were much lower than expected? A) "We'd better do some market testing to determine why people are dissatisfied." B) "Perhaps we should make candy bars with raisins." C) "Let's put more aggressive salespeople in the field." D) "Let's lower the price and change the name." E) "Don't worry about it; we're the largest candy manufacturer in the area. Sooner or later they'll get hungry enough that they'll come to us."
136)
In U.S. business history, the marketing concept era was introduced in A) the mid-19th century. B) the 1920s. C) the 1950s. D) the mid-1980s. E) the early 21st century.
137) The________Blank concept means that an organization strives to satisfy consumer needs while achieving its goals.
Version 1
47
A) marketing B) sales C) production D) societal benefit E) customer relationship
138)
Which statement about the marketing concept is most accurate?
A) The marketing concept can trace its roots to early Greek culture. B) The idea of the marketing concept is that both companies and consumers can satisfy their needs. C) In using the marketing concept, companies focus on sales and advertising. D) The marketing concept is most effective when production is limited and the product will sell itself. E) All U.S. firms are now operating with a marketing concept philosophy.
139) The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals reflects the A) concept of synergy. B) marketing concept. C) principle of customer relationship management. D) societal marketing concept. E) consumerism concept.
140)
The marketing concept refers to
Version 1
48
A) the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large. B) the belief that an organization should continuously collect information about customers' needs, share this information across departments, and use it to create customer value. C) the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. D) the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. E) the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals.
141)
Which term best describes the marketing concept? A) consumer-oriented B) production-oriented C) sales-oriented D) society-oriented E) competition-oriented
142) In 1952, General Electric's annual report stated, "The concept introduces...marketing...at the beginning rather than the end of the production cycle and integrates marketing into each phase of the business." This is a brief statement of what has come to be known as the A) sustainability perspective. B) age of consumerism. C) sales concept. D) marketing concept. E) customer relationship management concept.
Version 1
49
143) Firms such as Southwest Airlines, Marriott, and Facebook have achieved great success by putting a huge effort into implementing the marketing concept, giving their firms a________Blank orientation. A) production B) sales C) customer relationship D) service E) market
144) Some companies have very restrictive return policies, often only accepting returns for store credit or even not accepting them at all. Though these policies have a positive effect on sales figures, some customers end up frustrated because they have legitimate reasons they wish to return merchandise. Very restrictive return policies are likely a violation of A) the marketing concept. B) the customer profile concept. C) consumerism. D) social entrepreneurship. E) cause marketing.
145)
An organization with a market orientation
A) focuses its efforts on continuously collecting information about the environment, keeping abreast of competitors' actions, and using this information to create product innovation. B) identifies prospective buyers, understands them intimately, and develops favorable long-term perceptions of the organization and its offerings so that they will choose it in the marketplace. C) strives to satisfy the needs of consumers while also trying to achieve its goals. D) satisfies the needs of consumers in a way that provides for society's well-being. E) focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value.
Version 1
50
146) An organization that focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value is said to have a A) product orientation. B) macroeconomic orientation. C) market orientation. D) flexible orientation. E) societal marketing orientation.
147) With respect to the history of American business, today's firms operate in the________Blank era as they must continuously seek to satisfy the high expectations of customers. A) production B) sales C) marketing concept D) customer relationship E) societal marketing
Version 1
51
148)
In Figure 1-5, "A" represents which era in U.S. business history?
A) sales era B) consumerism era C) marketing concept era D) customer relationship era E) production era
149)
In Figure 1-5, "B" represents which era in U.S. business history?
Version 1
52
A) sales era B) production era C) consumerism era D) marketing concept era E) customer relationship era
150)
In Figure 1-5, "C" represents which era in U.S. business history?
A) sales era B) production era C) consumerism era D) marketing concept era E) customer relationship era
Version 1
53
151)
In Figure 1-5, "D" represents which era in U.S. business history?
A) sales era B) production era C) consumerism era D) marketing concept era E) customer relationship era
152)
Customer relationship management refers to the
A) view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. B) process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so buyers will choose them in the marketplace. C) idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals. D) links an organization has to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit. E) cluster of benefits that an organization promises customers to satisfy their needs.
Version 1
54
153) The United Way of Greater Toronto (UWGT), like many charities, was sitting on a gold mine of donor data. Unfortunately, UWGT was not certain how to use that information to its greatest advantage. UWGT could blanket past donors with generic mailings, but it could not offer donors information that would convince them to donate to UWGT over other charities. Which tool would be most useful for the nonprofit organization to use? A) a flexible marketing system B) a database warehouse C) customer relationship management D) competitive intelligence E) a profit-oriented marketing program
154) The internal response that customers have to all aspects of an organization and its offerings is referred to as A) customer experience. B) relationship marketing. C) internal customer audit. D) internal marketing. E) customer relationship management.
155)
Customer experience refers to
Version 1
55
A) the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time. B) the links an organization has to its customers for their mutual long-term benefits. C) the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. D) the internal response that customers have to all aspects of an organization and its offerings. E) the activities in which a firm participates to create a positive buying experience for customers.
156) Trader Joe's is consistently ranked as one of America's favorite supermarket chains for its outstanding________Blank, including personal attention from employees in the store. A) customer value proposition B) relationship marketing C) customer experience D) internal marketing E) customer profiling
157)
All of these are aspects of Trader Joe's customer experienceexcept which?
A) It has a large and state-of-the-art research and development facility. B) It offers unique food products not available from other retailers. C) Its commitment to customer experience has resulted in its rank as a favorite supermarket. D) It sets low prices by offering its own brands, not national ones. E) It encourages employee "engagement" to help customers.
Version 1
56
158) Today, the standards of marketing practice have shifted from the interests of producers to the interests of A) nonprofit organizations. B) government. C) retailers. D) stockholders. E) consumers.
159)
Social responsibility is the
A) view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. B) fundamental, passionate, and enduring principles of an organization that guide its conduct over time. C) idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals. D) idea that individuals and organizations are accountable to a larger society. E) recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.
160) as
The idea that individuals and organizations are accountable to a larger society is known
A) the societal marketing concept. B) social responsibility. C) consumerism. D) sustainable development. E) capitalism.
Version 1
57
161) Oil manufacturers know that some consumers change the oil in their cars themselves and dump the used oil down sewer drains that ultimately flow into local rivers. Which is the most appropriate response, assuming the oil company is concerned with social responsibility? A) Consumers pay for the oil and can dispose of it however they choose. B) The oil company will add a premium to the price so the costs of any oil cleanup is borne by the customers. C) The oil company will develop a PR campaign to avoid bad press. D) The polluted water affects society at large so the oil company will take action to prevent such disposal. E) This is an issue local communities should address with their residents.
162) Which concept most likely explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each per month? A) the profit motive since aging baby boomers are a large, profitable market B) the social responsibility concept C) the necessity of matching competitors' actions D) new regulatory Medicare mandates as a result of the Affordable Care Act E) the mandate by its industry's code of ethics
163)
What is the societal marketing concept?
Version 1
58
A) The moral principles and values that govern the actions and decisions of an organization. B) The idea that organizations are part of a larger society and are accountable to that society for their actions. C) An active attempt to understand customer needs and satisfy them while satisfying the firm's goals. D) An approach that involves conducting business in a way that protects the natural environment while making economic progress. E) The view that an organization should satisfy the needs of consumers in a way that provides for society's well-being.
164) The view that holds an organization should satisfy the needs of consumers in a way that also provides for society's well-being is known as A) the societal marketing concept. B) the marketing concept. C) consumerism. D) social responsibility. E) capitalism.
165) Innovators at 3M developed Scotchbrite Greener Clean scrub sponges made from agave leaves. Customers appreciate this superior product (they don't rust or scratch) and like the fact that their purchase is environmentally responsible, making this an example of A) the societal marketing concept. B) the marketing concept. C) consumerism. D) target markets. E) capitalism.
Version 1
59
166)
What kinds of organizations should engage in marketing? A) only those that can afford to advertise B) only very large and established for-profit organizations C) only Fortune 5,000 companies D) every kind of organization E) only organizations with a profit motive
167)
Which organization engages in marketing? Choose the best answer. A) the Chicago Cubs B) the San Francisco Opera C) the City of Denver D) the President of the United States E) Every organization or individual can engage in marketing to some extent.
168)
Which statement best describes a good? A) Goods are physical objects. B) Goods are the only currency that can be used in an exchange. C) Goods are intangible concepts and thoughts about ideas or causes. D) Goods are the benefits organizations receive for selling products and services. E) Goods can be either tangible or intangible.
169)
Which statement best describes a service?
Version 1
60
A) Services are physical objects. B) Services are intangible items. C) Services are thoughts about concepts, actions, or causes. D) Services are the benefits organizations receive in exchange for selling products. E) Services comprise the subset of tangible features of products.
170) Organizations such as Uber, Citibank, and St. Jude Children's Research Hospital each provide customers with a product that is typically called A) a utility. B) a performance. C) a service. D) a value. E) an idea.
171) A skydiving experience cannot be touched like a physical object, but is still considered a product. To a marketer, this is an example of A) a utility. B) a production. C) a value. D) a service. E) an idea.
172)
In marketing, thoughts about concepts, actions, or causes are referred to as
Version 1
61
A) utilities. B) experiences. C) values. D) ideas. E) services.
173)
A product is
A) an item that consists of the benefits or customer value received by its sellers. B) the cluster of benefits that an organization promises customers to satisfy their needs. C) a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange for money or something else of value. D) an item that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. E) the set of intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
174) In marketing, a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is known as a(n) A) utility. B) item. C) sale. D) marketing program. E) product.
175)
Which answer reflects (in this order) a good, a service, and an idea that can be marketed?
Version 1
62
A) a candy bar, a wastepaper basket, and a vending machine B) a CD, a concert, and a souvenir T-shirt C) a political candidate, democracy, and freedom D) an iPhone, an iPad, and an Apple Watch E) a toothbrush, laser teeth whitening, and dental hygiene
176) Russia's world-class, 1,000-room State Hermitage Museum wanted to find a way to market itself to potential first-time visitors. So it developed a free app to guide visitors through the museum and provide information about events and exhibits. The Hermitage is a(n)________Blank that uses an app to market itself worldwide. A) good B) idea C) service D) assembly E) charity
177)
All of these are examples of ideas that can be marketedexcept which?
A) state governments in Arizona and Florida marketing the notion of taking a warm, sunny winter vacation in their states B) Apple using a TV ad to explain the features of an iPad mini (camera, screen resolution, user interface, etc.) C) the Nature Conservancy marketing the cause of protecting the environment D) conservative politicians who attempt to persuade voters of the need to slash government spending to reduce a large national deficit E) charities like the Red Cross marketing the idea that it's worthwhile for you to donate your time or money to its relief efforts
178)
Ultimate consumers are
Version 1
63
A) the people who use the products and services purchased for a household. B) people who have already purchased a firm's product at least once, have been satisfied, and are likely to make repeat purchases. C) people or organizations that have used a competitor's product and who have been dissatisfied, and who are still seeking a product or service to satisfy their needs. D) those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. E) one or more specific groups of potential customers toward whom an organization directs its marketing program.
179)
The people who use the products and services purchased for a household are called A) organizational buyers. B) household prospects. C) ultimate consumers. D) a target market. E) sellers.
180) Hudson News Distribution owners Lisa and James Cohen recently launched a quarterly art and interior design magazine,Galerie, to be distributed exclusively in their retail stores. Who is the ultimate consumer for this magazine? A) the person who buys the magazine to read at home B) the person who stocks the magazine rack at Hudson News C) any person who owns Hudson News stock D) the salesperson at Hudson News E) All those who benefit from the magazine, from the owners and writers, to the seller, to the reader at home, are ultimate consumers.
181)
Which person is an example of an ultimate consumer?
Version 1
64
A) a newspaper reporter who books a plane ticket to Washington, D.C., to cover the presidential inauguration B) a schoolteacher who got her hair cut at a salon prior to classes starting in the fall C) an office receptionist who renews the subscriptions for magazines that are found in the office waiting room D) a retailer who buys banners for an upcoming store sale E) a landscaping firm employee who buys a new wheelbarrow to haul mulch
182) Entities such as manufacturers, retailers, and government agencies that buy goods and services for their own use or for resale are referred to as A) intermediate buyers. B) selling agents. C) organizational buyers. D) manufacturing agents. E) brokers.
183)
Organizational buyers are described as
A) only companies that purchase raw materials and natural resources for manufacturing. B) employees who purchase household items for their personal use. C) any individual or group making a purchase worth over $100,000. D) manufacturers, retailers, or government agencies that buy products for their own use or for resale. E) any organization that uses products purchased or meant for a household.
184)
Which person is the best example of an organizational buyer?
Version 1
65
A) a college student buying paper towels in bulk for herself and her roommates B) a store owner buying hand-woven tablecloths to sell in her store C) a computer programmer buying the latest game for her Xbox D) a botanist buying a rare rose bush for her home garden E) a parent buying a softball glove for a daughter
185)
Effective marketing benefits society because it
A) reduces competition, making the playing field more even. B) improves the quality of products and services regardless of the cost. C) allows companies to charge whatever price they want, regardless of product quality. D) makes countries more competitive in world markets while simultaneously reducing competition in their home markets. E) enhances competition, which encourages improvements in the quality of products and services and lowers prices.
186)
In marketing, utility refers to
A) the number of alternative uses or benefits that can be provided by a single product or service. B) the adaptability of a marketing program to adjust to changes in the marketing environment. C) the benefits or customer value received by users of the product. D) the fixed costs associated with the production of a single unit of a product within a product line. E) the variable costs associated with the production of a single unit of a product within a product line.
187)
The benefits or customer value received by users of a product is called
Version 1
66
A) utility. B) synergy. C) consumerism. D) cost-benefit ratio. E) customer lifetime value.
188)
The four utilities marketing creates are A) product, price, promotion, and place. B) form, function, value, and image. C) monopoly, monopolistic competition, pure competition, and oligopoly. D) form, place, time, and possession. E) information, persuasion, affection, and recommendation.
189) The value to consumers that comes from the production of a product or service constitutes________Blank utility. A) time B) place C) possession D) market E) form
190)
Which example best demonstrates form utility?
Version 1
67
A) a smartphone with a multi-touch user interface for easy navigation B) stamp vending machines that are located in drugstores C) a service station that has a 24-hour ice machine available for use when the station is closed D) a mobile phone company that offers six-month financing, same as cash E) a gourmet candy store that offers a home delivery service
191) FreshCase packaging is the first-ever vacuum package for red meat that maintains the meat's appetizing color, reducing both food and plastic waste. This is an example of creating__________Blank utility in the case-ready meat category. A) time B) place C) form D) possession E) market
192) Innovations in the textile industry have led to fabrics that help regulate body temperature, reduce wind resistance, and control muscle vibration, all of which help improve athletic performance. This shows how manufacturing can create__________Blank utility. A) time B) form C) place D) possession E) market
193) BioFuel Energy, a Minnesota ethanol producer, can turn corn into ethanol, creating________Blank utility.
Version 1
68
A) time B) place C) possession D) market E) form
194) The value to consumers that comes from having the offering available where consumers need it constitutes__________Blank utility. A) time B) place C) possession D) market E) form
195)
Which is the best example of place utility? A) airlines that allow you to print your own boarding pass at home B) a service station that adds a diesel fuel pump to its three unleaded gasoline pumps C) a mobile phone company that offers six-month financing, same as cash D) cold cut packages that can be zipped close for reuse E) a smartphone with a multi-touch user interface for easy navigation
196) The value to consumers that comes from having the offering available when they need it constitutes__________Blank utility.
Version 1
69
A) place B) possession C) market D) time E) form
197) American Express cardholders have access to early presales for Ariana Grande concert tickets in many cities. What utility does American Express offer in this instance? A) time utility B) place utility C) possession utility D) market utility E) form utility
198) Dick's Sporting Goods carries baseballs year-round. The same is true for footballs and tennis equipment. With this strategy, Dick's Sporting Goods offers__________Blank utility for these products. A) time B) place C) possession D) market E) form
199)
Which is the best example of time utility?
Version 1
70
A) a smartphone with a multi-touch user interface for easy navigation B) a charity's 24-hour drop-off box for clothing donations C) a dry cleaner located inside a supermarket D) a mobile phone company that offers six-month financing, same as cash E) a new herbal supplement that offers a 30-day free trial
200) Redbox places vending machines at local convenience and grocery stores that allow customers to rent and return popular movies and video games 24 hours a day. This creates both________Blank and________Blank utilities. A) form; place B) form; time C) place; time D) time; possession E) form; possession
201) The value to consumers that comes from making an item easy to purchase through the provision of credit cards and financial arrangements constitutes__________Blank utility. A) time B) place C) market D) possession E) form
202)
Which is the best example of possession utility?
Version 1
71
A) a smartphone with a large selection of new apps B) the local dairy that offers to deliver bottles of milk to a customer's doorstep C) disposable diapers that come equipped with resealable tabs D) a gourmet food store that carries a line of ready-made salads E) a mobile phone company that offers six-month financing, same as cash
203)
The founders of Bombas created the company based on a need for its initial product in A) industrial manufacturing. B) higher education. C) homeless shelters. D) the visual arts. E) recreational sports.
204) The founders of Bombas used the money they received from crowdfunding platform Indiegogo to A) create a documentary about the origins of the business. B) build a website to sell its products online. C) enhance production capabilities to include customization options. D) hold a splashy launch event with professional athletes. E) develop a superior product with sustainable materials.
205)
Which of these is a product strategy for Bombas?
Version 1
72
A) production from 100% recycled materials B) quantity discounts for purchasing multi-packs C) free returns if products don't fit D) a Dog Proof Guarantee, replacing socks when they are eaten by your dog E) free monogramming
206)
Which of these was the initial place strategy for Bombas? A) convenience stores B) its own specialty stores C) vending machines D) schools E) online
207)
For promotion, Bombas uses________Blank as a retention tool. A) email B) television advertising C) sponsorship of the U.S. Olympic Teams D) social presence on Facebook, Pinterest, and Instagram E) word of mouth
208) Why are you, as a student, already somewhat of a marketing expert before taking this course? Provide a specific example from your own personal experience and relate it to something you just "formally" learned about marketing.
Version 1
73
209) What is the definition of marketing? How does this differ from your previous notion of marketing before beginning this course?
210) What are the two key objectives of marketing? Define "exchange" and explain how it supports these objectives.
211) Some people may assume that for a marketer, the only thing of value for which he or she would "exchange" would be monetary (check, credit/debit, currency, and/or coin transactions). But what else can be exchanged? Provide an example of a nonmonetary transaction that still fits the criteria of exchange.
212) In addition to consumers, what other people, groups, and environmental forces interact to influence an organization's marketing activities?
213)
What four factors are required for marketing to occur?
Version 1
74
214) In China, some people are removing their money from the state banks and lending it out themselves. The interest rate earned in a state bank account is about one-half the rate of inflation. On the other hand, lending money to friends, relatives, and even unrelated entrepreneurs can often earn the investor a rate at least double the inflation rate. The gray market, an underground network of investors and private businesses, moves the cash from lenders to businesses. Did marketing occur here? Explain your answer.
215) Add your own personal experience and creativity to what you have learned about marketing. What are some ways you might assess the needs of either (1) students who have too many textbooks to carry to and from class or (2) executives who are too busy to keep up with the latest information in their field?
216)
Define needs and wants. Can marketing shape a person's wants? Explain your answer.
217)
What are the three components of a person's ability to buy an offering?
Version 1
75
218) Explain the difference between a market and a target market. Provide a specific example of each.
219) Describe two different target markets for two different products or services you, your friends, or your family have recently purchased or used.
220) An inventor designs a pair of scissors that has interchangeable blades that allow the user to switch from straight cuts to decorative cuts. Identify two possible target markets and explain your answer.
221) Marketing managers use a combination of four tools in order to develop a complete marketing program to reach consumers. Briefly define these four tools.
Version 1
76
222) Imagine you have the sole marketing rights to a new herbal shampoo that stops hair loss and actually causes new hair growth. You plan to sell your product on a website, which you will advertise on late-night television. You are also hoping to obtain free publicity to place stories in men's fashion magazines. You are planning to sell online a 15-ounce bottle for $24.99 plus $7.99 shipping and handling. Using the information provided, identify each element of your marketing mix.
223) List the five environmental forces in a marketing decision that generally are outside the control of marketing managers. Explain how these factors impact an organization's marketing.
224) Why do some marketers feel that environmental forces arenot entirely outside their influence?
225) Do college students have a choice in which classes they take to earn a degree? Use what you have learned about the controllable and uncontrollable aspects of marketing in terms of how they might relate to course selection decision making. Incorporate marketing terms in your response.
Version 1
77
226) The Apple iPhone is rated byConsumer Reports as being one of the best smartphones in the industry. Define customer value. In what ways do you think the Apple iPhone provides value for its customers?
227) Assume you are a salesperson for a direct marketing firm that does in-home jewelry parties. If most of your hosts or hostesses hold only one party a year, what strategies could you use to build strong customer relationships? If you are creating your own business for this example, make sure to describe your product(s) in your introductory sentence.
228) During October, kiosk or "pop-up" stores appear in many malls for the holiday season. Typically, these kiosks sell gift boxes of cheese, jewelry, and other items people think are appropriate seasonal gifts. In January, these retailers vanish. Is it possible for such a retailer to use relationship marketing? Explain your answer.
229) Twitter is a social networking service, enabling its users to send and read other users' messages or conversations called tweets, which are short, text-based posts, or tweets, displayed on the user's profile page. Connected to each tweet is a rich details pane that provides additional information, deeper context, and embedded media. Companies are using Twitter as a tool in their relationship marketing programs. In what ways can Twitter be used to benefit both the customer and the organization?
Version 1
78
230) Explain the marketing program that 3M used to reach the student target market for the Post-it Flag Highlighter and the rationale used for each element of the marketing mix.
231) Explain the marketing program 3M used to reach the office worker segment with its Postit Flag Pen.
232)
Define the marketing concept.
233) Goods, services, and ideas all can be marketed. Define goods, services, and ideas and give at least one example of each.
Version 1
79
234) What are the primary differences between an ultimate consumer and an organizational buyer? Select one product and explain the differences in either its use or purchase, depending on whether it was purchased by an ultimate consumer or an organizational buyer.
235) In our free-enterprise society, which three specific groups benefit from effective marketing?
236) Explain what is meant by the concept of marketing utility. Identify and describe the four utilities created by marketing.
237) At the BMW website, BMW.com, you can design your own BMW with the exact features you desire. If you choose to use this method to purchase a car, what type of utility(ies) has(have) been created?
Version 1
80
Answer Key Test name: Chap 01_16e_Kerin 1) D 2) C 3) B 4) E 5) D 6) E 7) C 8) A 9) A 10) E 11) D 12) B 13) A 14) B 15) C 16) C 17) B 18) B 19) E 20) A 21) D 22) B 23) B 24) E 25) B 26) A Version 1
81
27) E 28) B 29) B 30) C 31) E 32) D 33) B 34) D 35) C 36) B 37) D 38) A 39) D 40) B 41) D 42) E 43) B 44) C 45) B 46) C 47) E 48) D 49) C 50) B 51) B 52) B 53) B 54) B 55) B 56) E Version 1
82
57) D 58) E 59) C 60) A 61) B 62) C 63) A 64) C 65) E 66) E 67) A 68) B 69) E 70) D 71) A 72) D 73) B 74) B 75) D 76) E 77) B 78) C 79) A 80) D 81) B 82) C 83) E 84) D 85) A 86) C Version 1
83
87) B 88) B 89) E 90) C 91) B 92) D 93) C 94) C 95) D 96) A 97) D 98) B 99) C 100) D 101) B 102) D 103) A 104) A 105) D 106) E 107) E 108) B 109) D 110) D 111) C 112) A 113) C 114) B 115) E 116) A Version 1
84
117) A 118) B 119) D 120) D 121) A 122) D 123) E 124) C 125) B 126) A 127) D 128) E 129) E 130) C 131) B 132) A 133) D 134) B 135) C 136) C 137) A 138) B 139) B 140) E 141) A 142) D 143) E 144) A 145) E 146) C Version 1
85
147) D 148) E 149) A 150) D 151) E 152) B 153) C 154) A 155) D 156) C 157) A 158) E 159) D 160) B 161) D 162) B 163) E 164) A 165) A 166) D 167) E 168) A 169) B 170) C 171) D 172) D 173) C 174) E 175) E 176) C Version 1
86
177) B 178) A 179) C 180) A 181) B 182) C 183) D 184) B 185) E 186) C 187) A 188) D 189) E 190) A 191) C 192) B 193) E 194) B 195) A 196) D 197) A 198) A 199) B 200) C 201) D 202) E 203) C 204) B 205) D 206) E Version 1
87
207) A
Version 1
88
CHAPTER 2 1) Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies, one of which is A) supporting farmers who agree to use sustainable farming practices, implement fair working standards, and invest in local communities. B) the intent of making modest profits without sacrificing high product quality standards. C) ingredients that are all completely organic and are available only in Vermont to ensure freshness and contribute to the local economy. D) a commitment to donating a percentage of profits to Teach for America. E) ingredients that come exclusively from developed countries promoting Fair Trade practices.
2) Ben & Jerry's mission-driven approach led the company to successfully implement many highly creative organizational and marketing strategies. One example is A) ISO 9000, promoting the quality concept through its commitment to making the finest ice cream from the best ingredients. B) "linked prosperity," which encourages the success of all constituents including employees. C) Regeneration Nation, generating enough revenue for the firm to be a completely nonprofit organization. D) Give and Go, donating 10 percent of its net profits to local charitable causes and an additional 5 percent to support producers that practice sustainable farming. E) elimination of single-use plastic by discontinuing the offering of plastic straws and spoons.
3)
Ben & Jerry's has earned B-Corp certification, which means it has
Version 1
1
A) reached the goal of generating enough revenue to be a completely nonprofit organization. B) a sustainable financial basis of profitable growth, increasing value for stakeholders and expanding opportunities for development and career growth for employees. C) the goal of making profits for selected charitable organizations such as Fair Trade. D) met a rigorous set of standards for social and environmental performance, accountability, and transparency. E) been instrumental in expanding into international markets by creating dairies for developing nations.
4)
Which statement regarding Ben & Jerry's is most accurate?
A) Ben & Jerry's is owned by Unilever, the market leader in the global ice cream industry. B) Ben & Jerry's is a privately owned ice cream producer. C) Ben & Jerry's prides itself on offering more ice cream flavors than its competitors. D) Ben and Jerry are not real people; the names were a clever reference to Tom and Jerry cartoon characters in order to capitalize on childhood nostalgia. E) Ben & Jerry's has only been in business for 20 years and is already the industry leader in premium ice cream.
5) A(n)________Blank is a legal entity that consists of people who share a common mission. A) department B) organization C) SBU D) industry E) market
Version 1
2
6)
In marketing, an organization refers to a
A) legal entity that consists of people who share a common mission. B) group of people united through contractual or corporate ownership. C) legal entity engaged in business activities solely with the intent of making a profit. D) legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit. E) privately owned entity that serves its customers to earn a profit so that it can survive.
7) A(n)________Blank is a good, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants. A) exchange B) countertrade C) profit center D) offering E) industry
8)
In marketing, an offering refers to A) the formal designation of a publicly traded stock for a specific product, service, or
idea. B) a form of currency used by buyer and seller to minimize the tax burden for both parties. C) a good, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants. D) the manufacturer's suggested retail price of a product or service to the general public or the wholesale price to distributors and retailers. E) the service suppliers and distributors provide to help manufacturers bring a product to market.
Version 1
3
9)
Organizations can be divided into three types: A) company, nonprofit, and cooperative. B) corporation, employee-owned, and interest. C) for-profit, nonprofit, and government. D) employee, distributor, and customer. E) public, private, and international.
10) A(n)________Blank is a privately owned organization that serves its customers to make money so that it can survive. A) agency B) for-profit organization C) institution D) nonprofit organization E) cooperative
11)
A for-profit organization refers to a
A) subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers. B) legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit. C) privately owned organization that serves its customers to make money so that it can survive. D) group of people united through contractual or corporate ownership. E) publicly owned organization that serves the general population.
12) ________Blank the reward to a business firm for the risk it undertakes in marketing its offerings.
Version 1
4
A) Shareholders' equity is B) Profit is C) Assets are D) Contribution margin is E) Goodwill is
13)
Profit refers to the
A) point at which a company's assets equal its liabilities plus shareholder equity. B) difference between the list and final price of a product or service. C) money earned when the economic order quantity is minimized. D) money left over after a business firm's total expenses are subtracted from its total revenues. E) total amount of revenue accrued through product sales or service distribution.
14) Julio printed 70 t-shirts for a political rally on campus. His costs to buy the shirts and have them printed were $500. He planned to sell them for $15 each, for a total of $1050. If he sold them all, what would his profit be? A) $500 B) $1050 C) $1550 D) $550 E) $1000
15)
A nonprofit organization is
Version 1
5
A) a nongovernmental organization that serves its customers but does not have making money as an organizational goal. B) a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit. C) a publicly owned organization that serves the general population. D) a group of people united through contractual or corporate ownership. E) a privately owned organization that serves its customers to earn a profit so that it can survive.
16) A________Blank is a nongovernmental organization that serves its customers but does not have making money as an organizational goal. A) business firm B) subchapter S corporation C) service agency D) cooperative E) nonprofit organization
17) A________Blank is a federal, state, county, or city unit that provides a specific service to its constituents. A) business firm B) subchapter S corporation C) government agency D) cooperative E) nonprofit organization
18) Social entrepreneurs who start new ventures such as Teach for America and Recidiviz often structure them as________Blank rather than as business firms.
Version 1
6
A) business agencies B) nonprofit organizations C) government agencies D) cooperatives E) social service agencies
19) Which statement best describes the most significant difference between a for-profit organization or business firm and a nonprofit organization? A) Business firms earn a profit each year while nonprofits operate at a deficit annually. B) Nonprofit organizations do not carry on economic activities while business firms do. C) Nonprofit organizations are concerned with social issues and business firms are not. D) Both serve customers, but business firms seek a profit while nonprofit organizations do not. E) Nonprofit organizations are publicly owned and business firms are privately owned.
20)
An example of a nonprofit organization is A) the Food and Drug Administration. B) CVS Pharmacies. C) the medical technology company Medtronic, Inc. D) the pharmaceutical company Pfizer, Inc. E) Vitalant, a blood donation organization.
21) Cree markets LED (light-emitting diode) bulbs, selling them for a profit. A Cree LED bulb replaces the traditional incandescent bulb, consuming 85 percent less energy and lasting for 25,000 hours. Cree is an example of a(n)
Version 1
7
A) cooperative. B) industry. C) nonprofit organization. D) business firm. E) government agency.
22) Recidiviz compiles and standardizes data across state and federal prisons to help prevent outbreaks of illnesses, such as the COVID-19 virus, and to release prisoners who have successfully completed treatment programs. To date, it has assisted 30 states in preventing outbreaks, and it has helped identify more than 40,000 inmates as candidates for release. Recidiviz is an example of a(n) A) cooperative. B) industry. C) nonprofit organization. D) business firm. E) government agency.
23) Ling is in the business of connecting homeless with free shelters, and she funds her business through charitable donations and by placing ads in the shelters. She takes a small salary but reinvests whatever is left to grow the operation. Ling’s business is a A) business firm. B) subchapter S corporation. C) charitable service agency. D) cooperative. E) nonprofit organization.
Version 1
8
24) ________Blank can use a variety of organizational models to address social needs that inspire a mission, including health care delivery, the cost of higher education, and agricultural efficiency. A) Corporate welfare B) A social entrepreneur C) Sustainable development D) Cause marketing E) Societal capitalism
25)
Teach For America works to solve which societal problem?
A) It provides new college graduates as teachers in urban and rural public schools in the United States. B) It works to end corneal blindness worldwide by training doctors to do corneal surgeries, finding cornea donors and creating tissue banks. C) It provides education, training, and small business loans to women in impoverished areas so that they can help themselves. D) It offers free access to graduate education for injured U.S. veterans returning from overseas conflict. E) It offers tax credits to small businesses to employ at-risk youth in their communities.
26)
Teach For America is an example of a(n) A) entrepreneurial business firm. B) government agency. C) nonprofit organization. D) public value agency. E) 501(c)(3) for-profit organization.
27)
According to the text, the termsfirm, company, and organization
Version 1
9
A) refer to for-profits, nonprofits, and government agencies, respectively. B) refer to nonprofits, government agencies, and for-profits, respectively. C) refer to government agencies, for-profits, and nonprofits, respectively. D) refer to for-profits, government agencies, and nonprofits, respectively. E) can be used interchangeably to cover both profit and nonprofit organizations.
28)
Organizations that develop similar offerings, when grouped together, create a(n) A) conglomerate. B) merger. C) industry. D) sector. E) monopoly.
29)
An industry refers to
A) organizations that develop similar offerings. B) organizations that manufacture identical products to meet ISO 9000 specifications. C) companies that are active in the production of materials used in finished products. D) a group of people or firms united through strategic alliances. E) the economic activity concerned with the selling of finished products to wholesalers and retailers.
30)
Each of these is an example of an industryexcept which?
Version 1
10
A) software firms B) automobile companies C) fashion businesses D) government agencies E) cable television organizations
31) An organization's long-term course of action designed to deliver a unique customer experience while achieving its goals is a A) marketing device. B) policy. C) strategy. D) plan. E) tactic.
32)
Strategy refers to a(n)
A) organization's long-term course of action designed to deliver a unique customer experience while achieving its goals. B) organization's corporate tactical or action plan. C) statement of an accomplishment of a task to be achieved by a certain time. D) statement of the organization's function in society, often identifying its customers, markets, product, and technologies. E) road map for the entire organization for a specified future period of time, such as one or five years.
33)
Which statement about strategy is most accurate?
Version 1
11
A) An organization can be all things to all people because it has access to all the resources it needs to discover and satisfy the needs and wants of its target markets. B) The marketing department helps to both set an organization's direction and move it there. C) The American Marketing Association (AMA) has recently established the definition of strategy. D) Strategy is an organization's short-term course of action designed to deliver a specific customer experience while achieving its internal standards. E) Only start-up organizations must develop strategies to help them raise capital as well as focus and direct their efforts to accomplish their goals.
34) Large organizations are extremely complex, and usually consist of________Blank organizational levels overseen by a board of directors. A) two B) three C) five D) six E) seven or more
Version 1
12
35) In Figure 2-1, Box A represents the ________Blank that oversees the three levels of strategy in an organization.
A) functional level B) board of directors C) corporate level D) CEO E) strategic business unit level
Version 1
13
36) In Figure 2-1, B represents the ________Blank, the highest of the three levels of strategy in an organization.
A) functional level B) board of directors C) corporate level D) CEO E) strategic business unit level
Version 1
14
37)
In Figure 2-1, C represents the ________Blank of an organization.
A) strategic business unit level B) board of directors C) corporate level D) functional level E) CMO
Version 1
15
38) In Figure 2-1, D represents the ________Blank of an organization that is comprised of individual departments.
A) strategic business unit level B) board of directors C) corporate level D) functional level E) CMO
Version 1
16
39) In Figure 2-1, E represents the ________Blank that make up the functional level of an organization.
A) board of directors B) executive level C) hourly employees D) production personnel E) departments
40)
A board of directors of an organization A) represents the functional level. B) oversees the three levels of strategy. C) is equivalent to the corporate level. D) reports to the CEO. E) represents the strategic business unit level.
41) The level in an organization where top management directs overall strategy for the entire organization is the________Blank level. Version 1
17
A) corporate B) functional C) directive D) strategic E) tactical
42)
Within the corporate level of an organization, top management
A) develops marketing strategies and tactics for the marketing department to implement. B) directs overall strategy for the entire organization. C) executes all marketing program actions to ensure consistency of performance. D) develops overall sales projections not only for the short term but also for a period of at least two to five years. E) supervises the hiring, firing, and training of all marketing department personnel.
43)
At the corporate level in an organization,
A) the department heads direct overall strategy for the entire organization. B) groups of specialists actually create value for the organization. C) a small number of people from different departments are mutually accountable to accomplish a task or a common set of performance goals. D) a subsidiary, division, or unit of an organization markets a set of related offerings to a clearly defined group of customers. E) top management directs overall strategy for the entire organization.
44)
The CEO of an organization
Version 1
18
A) is usually at the strategic business unit level. B) is usually a member of the board of directors. C) outranks the corporate level. D) does not oversee the daily operations. E) is typically also the CMO.
45) The highest-ranking person in an organization who oversees the organization's daily operations and spearheads its strategy planning efforts is often referred to as the A) corporate executive overseer. B) chief executive officer. C) corporate executive official. D) chief marketing officer. E) coordinating executive official.
46) Christian Klein is the CEO of SAP, which is a company that sells expensive enterprise resource planning software to large and mid-sized companies. Klein is part of the________Blank level of his organization. A) business unit B) functional C) corporate D) strategic E) tactical
47) Overseeing strategic marketing efforts at the corporate level would most likely be the responsibility of the
Version 1
19
A) CEO. B) CMO. C) CPM. D) CPO. E) COO.
48) In recent years, many large firms have changed the title of the head of marketing from vice president of marketing to A) chief executive officer. B) corporate marketing official. C) coordinating marketing officer. D) chief marketing officer. E) corporate marketing executive.
49)
A strategic business unit (SBU) refers to a
A) single product or service identification code used to identify items for strategic marketing planning purposes. B) small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals. C) strategic product that has a unique brand, size, or price. D) privately owned franchise under the auspices of a larger group or organization bearing the same name. E) subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.
50) A subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers is a
Version 1
20
A) strategic business unit. B) strategic industry level. C) private corporation. D) product grouping. E) marketing department.
51) The level at which managers set a more specific strategic direction for their businesses to exploit value-creating opportunities is the________Blank level. A) marketing department B) strategic business unit C) corporate D) functional E) board of directors
52)
The strategic business unit level A) works most directly with the organization's target customers. B) directs the overall strategy for the organization. C) is most likely to change substantially over time. D) provides more end-user analysis in order to design more customer-directed products. E) defines a more specific strategic direction to exploit value-creating opportunities.
53) Which statement regarding an organization's strategic business unit level is most accurate?
Version 1
21
A) The strategic business unit level is the level that works most directly with an organization's targeted customers. B) The overall strategy for the organization is directed at the strategic business unit level. C) In the most complex organizations, the corporate level and the strategic business unit level may merge. D) More end-user analysis is provided at the strategic business unit level than at the functional level. E) The strategic direction is more specific at the strategic business unit level than at the corporate level.
54) the
The specialists within an organization who actually create value are usually a member of
A) strategic business unit level. B) functional level. C) corporate level. D) board of directors. E) CMO.
55)
A part of the key role of marketing is to A) support the board of directors. B) operate at the corporate level. C) look outward by listening to customers. D) manage executives. E) deliver strategic business decisions.
56) Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, or research and development) at the________Blank level.
Version 1
22
A) strategic B) corporate C) functional D) business unit E) tactical
57)
At the functional level in an organization,
A) groups of specialists actually create value for the organization. B) employees perform assigned tasks without actually having input into the decisionmaking process. C) all financial outlays are made. D) all company hiring and firing occurs. E) the strategic planners in SBUs make all decisions regarding which product benefits will be highlighted during a promotional campaign.
58)
At the functional level, the organization's strategic direction becomes
A) much more manageable since its offerings have been finalized. B) the most specific and most focused in terms of implementing the company's goals. C) broader since for less complex firms, the corporate and functional levels may merge. D) more general to avoid the "not invented here syndrome" that could result in missed opportunities. E) the sole responsibility of the CEO.
59)
Which statement would most likely be heard at the functional level of an organization?
Version 1
23
A) "We need to divest our Canadian operations that are performing poorly." B) "How large a budget can we allot to the marketing department?" C) "We plan to implement an Instagram advertising initiative within 60 days." D) "We should hire the most culturally diverse cross-functional team possible in order to generate the best new-product ideas." E) "What dividends should we pay stockholders next quarter?"
60)
Specialized functions such as marketing and finance are generally referred to as A) cross-functional teams. B) managerial groups. C) divisions. D) departments. E) strategic business units.
61)
At the functional level, the marketing department
A) solicits talent from all levels of the organization for strategic corporate planning sessions. B) promotes its goals to the organization's stakeholders. C) looks outward, in part by listening to customers. D) develops the corporate culture. E) defines the overall strategic direction of the organization.
62)
A key role of the marketing department is to "look outward." This is accomplished by
Version 1
24
A) allocating financial resources across strategic business units. B) communicating the vision of the marketing department forcefully enough to be incorporated into the overall mission of the company. C) forming cross-functional teams to help solve the organization's marketing problems. D) implementing new accounting regulations passed by legislators. E) listening to customers in order to inform decisions for developing and producing offerings.
63) Small groups of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals are A) designated teams. B) strategic business units. C) cross-functional teams. D) business committees. E) venture squads.
64)
Cross-functional teams refer to
A) members of an organization who have been trained in multiple disciplines so they can easily move from one job to another as needed. B) situations where two departments within the same company have opposing views about how a product should be developed and managed. C) departments within an organization that carryout multiple functions due to financial constraints within the company. D) a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals. E) departments within an organization that manage the same product with distinctly different marketing programs to reach different target markets.
Version 1
25
65) When a company is developing new offerings, marketing may provide staff to serve as part of a(n)__________Blank, joining others from different departments who are mutually accountable to this task. A) cross-functional team B) department C) strategic business unit D) organization E) business consortium
66) On the northern tip of Goose Island in the Chicago River sits the William Wrigley Jr. Company's Global Innovation Center. Here, Wrigley creates new products using a joint effort by some 250 full-time food scientists, researchers, and marketers. The people who work in this center are most likely members of a(n) A) innovation squad. B) business consortium. C) multiple strategic directional team. D) strategic evaluation team. E) cross-functional team.
67) IBM regularly creates what it calls global action teams, which take people from functional groups and bring them together to work on large client projects. These global action teams are a type of A) innovation group. B) business consortium. C) tactical group. D) SWOT team. E) cross-functional team.
Version 1
26
68)
Successful organizations must be forward-looking, which includes the ability to A) develop strategies based on those that were successful in the past. B) first be backward-looking, examining the past carefully to learn from mistakes. C) anticipate future events and respond quickly and effectively. D) hire the most culturally diverse team possible in order to generate the best new ideas. E) involve all stakeholders of the organization when defining its business mission.
69) In general, a visionary organization asks which three types of questions to specify its foundation, set a direction, and formulate strategies? A) why, when, where B) what, by whom, how C) how, when, where D) why, what, how E) who, why, when
70)
Which key element must be specified by a visionary organization? A) exceed financial goals B) set a direction C) establish detailed marketing tactics D) assign job responsibilities E) establish an organizational chart
Version 1
27
71) In Figure 2-2, Box A represents the "why" element of visionary organization. This is referred to as the organizational
A) foundation. B) tactics. C) mission. D) direction. E) strategies.
72) In Figure 2-2, B represents the "what" element of visionary organization. This is referred to as the organizational
A) tactics. B) mission. C) foundation. D) direction. E) strategies.
Version 1
28
73) In Figure 2-2, C represents the "how" element of visionary organization. This is referred to as the organizational
A) tactics. B) mission. C) foundation. D) direction. E) strategies.
74) The philosophical reason for an organization's existence is referred to as its organizational A) strategy. B) direction. C) foundation. D) goal. E) business.
75)
An organization’s foundation can be broken into four key elements:
A) products, services, goals, and ideas. B) business format, industry definition, long-term goals, and short-term objectives. C) board of directors, top management, line employees, and stakeholders. D) board-level strategies, corporate-level strategies, SBU-level strategies, and functionallevel strategies. E) organizational purpose, core values, mission or vision, and organizational culture.
Version 1
29
76)
An organizational foundation A) specifies the firm’s goals. B) defines the business that it is in. C) empowers stakeholders to have a voice in the strategic marketing process. D) is its philosophical reason for being—why it exists. E) is the company, its product, and its customers.
77)
An organization's foundation includes all of theseexcept which? A) organizational culture B) business definition C) organizational purpose. D) core values E) mission
78)
An organization's foundation includes which element? A) mission B) business definition C) goals D) strategic levels E) offerings
79) As part of a firm’s foundation, organizational________Blank describes why an organization exists, what problems it wishes to solve, and what it wants to be to every person it touches through its work.
Version 1
30
A) mandate B) culture C) strategy D) purpose E) alignment
80)
What serves as the basis for an organization’s core values, mission and culture? A) goals B) organizational purpose C) organizational structure D) a business model E) strategies
81) An organization's________Blank are the fundamental, passionate, and enduring principles that guide its conduct over time. A) goals B) cultures C) strategies D) core values E) mission statements
82)
Core values refer to
Version 1
31
A) the cultural ethos of an organization. B) proprietary values of a firm. C) written mission statements that express an organization's goals and objectives. D) the personal moral and ethical codes of a firm's stakeholders. E) the fundamental, passionate, and enduring principles that guide an organization's conduct over time.
83) A firm's________Blank are timeless, capturing its heart and soul, and serve to inspire and motivate its stakeholders. A) core values B) strategic goals C) offerings D) corporate strategies E) corporate ethics
84)
An organization's core values are most effective when communicated to and supported by A) competitors. B) top management and employees. C) suppliers. D) resellers. E) government regulators.
85)
An organization's core values
Version 1
32
A) are developed by cross-functional teams for all levels of an organization. B) are important to the founders but rarely motivate a firm's stakeholders. C) change as an organization's offerings change. D) guide the organization's conduct. E) cannot be separated from the financial realities of that organization.
86) Among the seven________Blank at IKEA are humbleness and willpower, leadership by example, daring to be different, and togetherness and enthusiasm. A) sustainability doctrines B) goals and objectives C) core values D) moral imperatives E) functional strategies
87) Employees at fashion apparel company Elliot Lucca work to embody its________Blank, which include trust (being honest and credible), action (making independent decisions), and ownership (treating the company as if one were a founder). A) sustainability doctrines B) goals and objectives C) core values D) moral imperatives E) functional strategies
88) The Ben & Jerry's website states: "Central to the mission of Ben & Jerry's is the belief that all three parts [product mission, economic mission, social mission] must thrive equally in a manner that commands deep respect for individuals in and outside the company and supports the communities of which they are a part." This statement reflects Ben & Jerry's
Version 1
33
A) sustainability doctrine. B) goals and objectives. C) core values. D) moral distinctions. E) functional strategy.
89) An organization's employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers are its A) stakeholders. B) stockholders. C) competitors. D) target audience. E) organizational community.
90)
All of these are examples of an organization’s stakeholdersexcept which? A) government B) competitors C) shareholders D) suppliers E) customers
91)
Which statement regarding stakeholders is most accurate?
Version 1
34
A) Employees are typically not classified as a stakeholder group because they are internal to the organization. B) There are only three types of stakeholders: customers, suppliers, and distributors. C) All stakeholders are internal to the organization. D) Stakeholders are a varied group; all are in some way affected by how well a company performs. E) Stakeholders are only those that have an ownership stake in an organization.
92) By understanding its purpose and core values, an organization can take steps to define its________Blank, a statement of the organization's function in society that often identifies its customers, markets, products, and technologies. A) customer value proposition B) doctrine C) philosophy D) mission E) code of ethics
93)
An organization's mission refers to A) the target goal it sets for current profits based on enacting a comprehensive strategic
plan. B) the target objective it projects for future market share based on enacting a comprehensive strategic plan. C) the fundamental, passionate, and enduring principles that guide its conduct over time. D) specific strategies and tactics that will be used to counteract any competitor's advantages. E) a statement of the organization's functions in society that often identifies its customers, markets, products, and technologies.
Version 1
35
94)
The terms________Blank andmission statement are often used interchangeably. A) idea B) objective C) vision D) goal E) protocol
95) Often used interchangeably with the termvision, a________Blank frequently has a meaningful theme and a long-term orientation. A) point of difference B) mission statement C) business definition D) customer value proposition E) marketing plan
96)
A mission statement should be all of theseexcept which? A) actionable B) inspirational C) long term D) meaningful E) concise
97)
A mission statement should be
Version 1
36
A) flexible. B) meaningful. C) quantitative. D) trademarked. E) clever.
98)
Which of these is one of the qualities of a good mission statement? A) idealistic B) long-term C) fact-based D) complex E) permanent
99) The________Blank for the American Red Cross is "to prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors." A) core benefit proposition B) business definition C) sustainability doctrine D) mission statement E) customer value proposition
100) The________Blank for Facebook is "To give people the power to share and make the world more open and connected."
Version 1
37
A) sustainability doctrine B) core benefit proposition C) mission statement D) corporate philosophy E) code of ethics
101) “Bumble is a platform and community that creates empowering connections in love, life, and work . . . [and promotes] accountability, equality, and kindness in an effort to end misogyny and re-write archaic gender roles” is the________Blank for the online dating service where women make the first move. A) sustainability doctrine B) core benefit proposition C) corporate philosophy D) mission statement E) code of ethics
102)
Recently, many organizations have added________Blank to their mission statements. A) a business definition B) a social element to reflect an ideal that is morally right and worthwhile C) an economic element to promote profit maximization D) an expanded definition of stakeholders to include its competitors E) their level of pricing and product quality
103) A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization is its
Version 1
38
A) mission statement. B) core value proposition. C) organizational culture. D) corporate philosophy. E) core benefit proposition.
104)
Organizational culture refers to
A) the personal moral and ethical codes of an organization's top management. B) a written statement expressing an organization's goals and objectives to be achieved through enacting a comprehensive strategic plan. C) the fundamental, passionate, and enduring principles that guide an organization's conduct over time. D) the ethos of an organization that excludes its core values. E) a set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
105)
Which statement regarding organizational culture is most accurate?
A) Organizational culture exists only at the corporate level of an organization. B) Organizational culture involves communicating and connecting with all of the firm's stakeholders. C) Organizational culture is best used only at the functional level for the most effective results. D) Organizational culture cannot be learned or taught. E) Organizational culture is a statement of the organization's function in society.
Version 1
39
106) George Zimmer, the former CEO of Men's Wearhouse, was known to the public as the bearded company pitchman who sells suits and sport coats on TV declaring, "You'll like the way you look. I guarantee it!" He also said that to be successful, "You've got to have a company that starts with trust and fairness." Zimmer was establishing________Blank for Men's Wearhouse. A) a vision B) a mission statement C) a pathos D) a behavioral protocol E) an organizational culture
107) Recently, St. Joseph Hospital was named one of the "Best Places to Work in Indiana" for the sixth consecutive year. The hospital touts universal values to "keep health care human," and employees consistently put patients first, which unites them in a common goal. Former hospital president Kathy Young believed that St. Joseph's________Blank makes both employees and patients happier in the hospital. A) vision B) service offerings C) organizational culture D) pathos E) behavioral protocol
108)
The organizational________Blank answers the question, "What will it do?" A) foundation B) direction C) culture D) strategy E) mission
Version 1
40
109)
In the context of organizational direction, the termbusiness refers to
A) the daily operational decisions that must be implemented for an organization to remain viable. B) exchange transactions between seller and buyer in order for the seller to make sales and earn profits. C) the clear, broad, underlying industry or market sector of an organization's offering. D) an organization that develops an offering. E) the objectives of a firm and the strategies and tactics that will allow it to achieve them.
110)
The clear, broad, underlying industry or market sector of an organization's offerings is its A) business. B) trade group. C) market. D) competitive set. E) product grouping.
111) ________Blank argued that leaders of 20th century American railroads defined their business too narrowly, thus failing to create strategies to compete with airlines, barges, pipelines, and trucks. A) Earl Bakken B) Mark Zuckerberg C) Reed Hastings D) Theodore Levitt E) Steve Jobs
112) According to Theodore Levitt, in terms of an organization's business, railroads lost market share in the 20th century because they
Version 1
41
A) had less flexible routes than trucking. B) defined their business too narrowly. C) tried to create a business that appealed equally to all people. D) priced their services too high. E) were simply an outmoded form of transportation.
113) In the 20th century, leadership of the railroads let airlines, barges, pipelines, and trucks take business away from them because their strategies were developed only for the railroad business, rather than a broader definition of the________Blank business. A) transportation B) transcontinental shipping C) passenger travel D) product delivery E) bulk cargo
114) The strategies an organization develops to provide value to the customers it serves are called A) the mission statement. B) an objective goal. C) the vision statement. D) the business model. E) a protocol.
115)
A business model
Version 1
42
A) is a road map for the marketing activities of an organization for a specified future time period. B) consists of the strategies an organization develops to provide value to the customers it serves. C) is a measure of the quantitative value or trend of a marketing activity or result. D) consists of the detailed day-to-day operational decisions for an organization. E) is the means by which organizational goals are to be measured and documented.
116) Many subscribers to newspapers and magazines have cancelled their print subscriptions in favor of online news. This trend has caused the StarTribune newspaper to offer online content for $1.99 per week and Newsweek to suspend its print edition in favor of an online-only weekly edition. These companies had to change their________Blank, an action triggered by the technological and social changes in their marketing environments. A) organizational cultures B) marketing tactics C) business models D) strategic marketing processes E) goals or objectives
117) Though it started first as a limousine service and became a ridesharing service, Uber redefined its business with the addition of UberRush, Uber Eats, and Uber Health, and now considers itself to be in the________Blank business. A) restaurant B) digital or physical mail C) logistics D) transportation E) warehousing
Version 1
43
118)
Statements of an accomplishment of a task to be achieved, often by a specific time are A) plans. B) procedures. C) strategies. D) core values. E) goals.
119)
Objectives are
A) the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program designed to reach it. B) criteria or standards used in evaluating proposed solutions to a marketing problem. C) statements of an accomplishment of a task to be achieved, often by a specific time. D) a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. E) the detailed day-to-day operational decisions essential to the overall success of marketing strategies.
120) ________Blank convert an organization's mission and business into long- and short-term performance targets. A) Plans B) Tactics C) Strategies D) Goals E) Visions
121)
Regarding goals and objectives, which statement would be most accurate?
Version 1
44
A) Objectives convert an organization's mission and business into long- and short-term performance targets. B) Goals and objectives are actually the detailed day-to-day activities necessary to implement a marketing program. C) A company's goals and objectives are often worthy in intent, but unrealistic in practice, because they are very rarely accomplished during the specified time period. D) Goal-setting only applies to business firms; nonprofit organizations typically do not set goals because they don't earn a profit. E) The termsgoal andobjective are not interchangeable. Goals are philosophical while objectives are performance-based.
122) Most firms have a goal to maximize their________Blank, achieving as high a financial return on investments as possible. A) quality B) market share C) employee welfare D) social responsibility E) profits
123) A new company has an objective that its sales will exceed its expenses during its first year of operation. This is an example of which type of goal? A) dollar sales revenue B) profit C) market share D) unit sales E) quality
Version 1
45
124) Seeking to obtain as high a financial return on their investments (ROI) as possible, firms will often set________Blank goals. A) sales B) quality C) market share D) profit E) employee welfare
125) Sometimes maximizing sales will come at the expense of________Blank, so it is necessary to ensure that the latter remains at acceptable levels. A) advertisements B) sales force C) profits D) sustainability efforts E) customer satisfaction
126) Steep markdowns at a retail store for end-of-year sales are likely to help with which goal, rather than a profit one? A) social responsibility B) sales C) market share D) customer satisfaction E) survival
127) GM's original first-year________Blank goal for the Chevy Volt was 10,000 units, although the product was well into its second year before reaching that level.
Version 1
46
A) profit B) market share C) sales D) customer satisfaction E) survival
128)
Market share refers to the ratio of A) the profit of the firm to the total profits of all firms in the industry, excluding the firm
itself. B) the profit of the firm to the total profits of all firms in the industry, including the firm itself. C) sales revenue of the firm to the total sales revenue of all firms in the industry, excluding the firm itself. D) sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. E) the profits of all firms in an industry to the profits of the firm.
129) The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself, is referred to as a(n) A) sales proportionality. B) marketing metric. C) industry potential. D) contribution margin. E) market share.
130) Market share is the ratio of sales revenue of the firm to the total sales revenue of all________Blank, including the firm itself.
Version 1
47
A) firms in the industry B) firms in the competitive set C) firms in the WTO D) product groupings E) domestic firms in a country
131) If Dr. Pepper Snapple Group plans to grow its proportion of the flavors segment of the carbonated soft drink industry to 45 percent, it has set a(n)________Blank goal. A) sales proportionality B) company sales C) industry potential D) contribution margin E) market share
132) A firm may have a goal to offer its customers the highest________Blank, as Medtronic does with its implantable medical devices that meet its customers' critical performance expectations. A) innovation B) quality C) service D) value E) warranty
133) Pharmavite LLC recently recalled several lots of Nature Made vitamin products due to possible salmonella or staphylococcus contamination. It should have adopted a more rigorous________Blank goal.
Version 1
48
A) profit B) sales revenue C) customer satisfaction D) employee welfare E) quality
134) Toyota had some difficulty recovering from a recall crisis several years ago when it was forced to recall about 6 million vehicles due to a variety of problems, most notably one with the accelerator pedal. To "polish" its brand, it implemented stricter________Blank goals to improve the safety and reliability of its vehicles. A) profit B) sales revenue C) customer satisfaction D) quality E) employee welfare
135) Motorola, a pioneer firm in the mobile communications space, invented a program known as Six Sigma, which sets as a goal no more than one defect in one million parts manufactured. This is an example of a(n)________Blank goal. A) profit B) sales revenue C) quality D) market share E) employee welfare
136) Customers' perceptions are often central to an organization’s goals, and their________Blank can be measured with surveys or by the number of customer complaints an organization receives.
Version 1
49
A) satisfaction B) welfare C) lifetime benefit D) value E) responsibility
137) The top consumer complaint about bananas is how soon they get brown spots. Dole, a multinational agricultural company, most likely set a(n)________Blank goal when it recently began adding stickers to bananas to promote the use of overripe bananas in the Yonanas machine (Dole owns 30 percent of the firm) to make a creamy, guilt-free dessert. A) profit B) market share C) employee welfare D) customer satisfaction E) social responsibility
138) Suppose L. L. Bean, a catalog retailer, has set a goal to reduce merchandise returns by 20 percent for the holiday season. The firm would most likely have set________Blank goal. A) a profit B) a customer satisfaction C) a market share D) an employee welfare E) a social responsibility
139) Lands' End, an American apparel and outerwear firm, ships each order within 48 hours and its guarantee is said to be the best in the world, as exemplified by its tagline "Guaranteed Period." These marketing actions by Lands' End most likely reflect its________Blank goals.
Version 1
50
A) profit B) market share C) employee welfare D) social responsibility E) customer satisfaction
140) When a firm recognizes the critical importance of its employees by attempting to provide good conditions and opportunities, it sets an employee________Blank goal. A) satisfaction B) responsibility C) compensation D) core value E) welfare
141) Howard Schultz, the founder of the American coffee chain Starbucks, provides health care for all staff who work over 20 hours per week. This is an example of one of Starbucks'________Blank goals. A) profit B) market share C) employee welfare D) customer satisfaction E) sales
142) Some universities provide retirement benefits by matching the percentage an employee pays into a retirement account up to a certain percentage. This encourages a larger percentage of employees to participate in retirement planning. This is an example of a(n)________Blank goal.
Version 1
51
A) satisfaction B) sales revenue C) market share D) quality E) employee welfare
143) Businesses sometimes pursue a(n)________Blank goal to balance the conflicting goals of stakeholders to promote their overall welfare, even at the expense of profits. A) customer satisfaction B) shareholder C) profit minimization D) social responsibility E) employee welfare
144) American Express, the credit card and travel organization, has a long history of working for the good of all in its New York community. In 1885, it engaged its employees to help raise money to build the pedestal of the Statue of Liberty. Today, it has a program to help restore, preserve, and revitalize historic sites in New York City. These actions by American Express are partial fulfillment of the________Blank goals this firm has established for itself as a corporate citizen. A) unit sales B) market share C) sales revenue D) customer satisfaction E) social responsibility
Version 1
52
145) Hasbro is a more than $4 billion global toy company that prides itself on donating to organizations that help children, since this group and their parents comprise the target market for its business. This is an example of a________Blank goal. A) unit sales B) market share C) social responsibility D) sales revenue E) customer satisfaction
146)
KPIs are useful to organizations for A) rewarding top employees. B) capturing market share. C) measuring achievement of their goals. D) identifying new customers. E) increasing customer satisfaction.
147) The organizational foundation sets the________Blank of organizations, the organization direction sets the________Blank, and organizational strategies are concerned with the________Blank. A) when; why; what B) why; what; how C) what; how; why D) what; where; how E) how; where; what
148)
Organizational strategies vary in two ways, depending on
Version 1
53
A) the strategy's level in the organization and the offerings it provides to its customers. B) the corporate level and the SBU level in the organization. C) whether an offering is new or has existed for a year or more. D) whether management plans to develop mission statements or core values. E) the organizational culture and its core values.
149)
A marketing plan refers to
A) the long-term decisions made to implement the marketing program and the monitoring of those decisions. B) a technique that marketing managers use to quantify performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a collection of separate investments. C) a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. D) the detailed day-to-day operational decisions essential to the overall success of marketing strategies. E) a road map for the entire organization for a specified future period of time, such as one year or five years.
150) A road map for the marketing activities of an organization for a specified future time period, such as one year or five years, is referred to as a A) business plan. B) marketing objective. C) marketing plan. D) marketing strategy. E) marketing program.
151)
A marketing plan is developed during which phase of the strategic marketing process?
Version 1
54
A) implementation B) control C) development D) planning E) evaluation
152) ________Blank is the visual computer display of the essential information related to achieving a marketing objective. A) A marketing metric B) An output report C) A marketing dashboard D) An information monitor E) A data interface
153)
A marketing dashboard is
A) a "report card" prepared by the marketing department regarding its performance in terms of environmental and social responsibility. B) the display of information found on a car's dashboard. C) an "app" that uses a car navigation device metaphorically to indicate the specific direction in which a company wishes to grow based on its annual marketing plan. D) information about an organization's marketing metrics presented orally so marketers can quickly spot deviations from plans and take corrective actions. E) the visual computer display of the essential information related to achieving a marketing objective.
154) With a marketing dashboard, a marketing manager may get information in the form of any of theseexcept a
Version 1
55
A) timeline. B) graph. C) table. D) printed report. E) map.
155)
Which statement regarding a marketing dashboard is most accurate?
A) The more text (words) that is displayed, the better it is for a marketing manager to identify trends, interpret the data, and take corrective actions. B) A marketing dashboard very often includes 20 or more marketing metrics on the computer screen. C) Marketing dashboards provide graphic displays of a product's performance, such as sales, website traffic, etc. D) For accuracy, the marketing dashboard should be updated weekly. E) Marketing dashboards often show key measures such as human resource turnover, strategy success, and societal well-being.
156)
A measure of the quantitative value or trend of a marketing activity or result is A) trend analysis. B) a marketing measurement. C) a marketing dashboard. D) a marketing metric. E) value analysis.
157)
A marketing metric refers to
Version 1
56
A) a measure of the quantitative value or trend of a marketing activity or result. B) a form of linear trend analysis used to project future profits based on existing marketing plans. C) one of a series of mathematical formulas used to calculate potential profits based upon different scenarios of the forces in the marketing environment. D) information about an organization's core values and code of ethics so marketers can quickly spot deviations and take corrective actions. E) the value of a product in terms of its contribution to employee welfare.
158) When a single measure, such as website traffic sources, is shown as part of a larger marketing dashboard, it is referred to as A) trend analysis. B) a marketing measurement. C) a marketing gauge. D) a marketing metric. E) value analysis.
159)
The primary purpose of a marketing metric is to
A) assign qualitative values to quantitative data. B) allow the sharing of information across product lines. C) measure the quantitative value of a marketing activity. D) forecast potential product/service opportunities over a period of five years. E) provide a numerically precise measurement of management judgment for an industry's growth.
160)
Data visualization is
Version 1
57
A) the visual computer display of the essential information related to achieving a marketing objective. B) a road map for the marketing activities of an organization for a specified future time period. C) the process of continuously collecting information about customers' needs, sharing this information across departments, and using it to create marketing metrics. D) a measure of the quantitative value or trend of a marketing activity or result. E) a way to present information about an organization's marketing metrics graphically so marketers can quickly spot deviations from plans and take corrective actions.
161) Consider the Ben & Jerry's Dollar Sales and Market Share figure here. A marketing manager for Ben & Jerry's notices that dollar sales for 2020 were $240 million and in 2021 they were $250 million. What was the formula used to calculate the dollar sales for each of these two years?
Version 1
58
A) Dollar sales ($) = Average price × Quantity manufactured in each year. B) Dollar sales ($) = Average cost of goods sold − Fixed costs in each year. C) Dollar sales ($) = Average price − Shrinkage rate in each year. D) Dollar sales ($) = Average price × Quantity sold in each year. E) Dollar sales ($) = Average cost of goods sold − Variable costs in each year.
162) Consider the Ben & Jerry's Dollar Sales and Market Share figure here. A marketing manager for Ben & Jerry's notices that dollar market share for 2020 was 18.4 percent and for 2021 it was 20.0 percent. What simple formula was used to calculate the dollar market share percentages for each of these two years?
Version 1
59
A) Dollar market share (%) = Ben & Jerry's sales ($)/Total industry sales, including Ben & Jerry's sales ($). B) Dollar market share (%) = Total industry sales, including Ben & Jerry's sales ($)/Ben & Jerry's sales ($). C) Dollar market share (%) = Total industry sales, including Ben & Jerry's sales ($)/Ben & Jerry's unit sales ($). D) Dollar market share (%) = Total industry sales, including Ben & Jerry's sales ($)/Ben & Jerry's net profit ($). E) Dollar market share (%) = Ben & Jerry's sales ($)/Gross domestic product ($).
163) An organization's special capabilities including skills, technology, and resources that distinguish it from other organizations and provide customer value, are referred to as A) points of differences. B) sustainable advantages. C) core values. D) points of similarity. E) competencies.
164)
An organization's competencies might include any of theseexcept which? A) profit B) customer service C) technologies D) resources E) employee skills
Version 1
60
165) Rhone-Poulenc is an international French company that produces and markets a variety of chemicals and pharmaceuticals. Due to the resources it makes available to its scientists and researchers, the company has a number of Nobel Prize winners working in its laboratories. This ability to employ some of the finest minds in the world is an example of a A) point of similarity. B) competency. C) sustainable advantage. D) product development strategy. E) human resource strategy.
166) Designing a car is expensive and time-consuming even with the use of computers because of the difficulty of getting all the varied departments to work together. Mercedes-Benz created a unique centralized web-based system that cuts the design and production process by at least two years, thus providing customer value. This is an example of A) a point of similarity. B) an innovation-oriented mission. C) an action program. D) an operational goal implementation. E) a competency.
167) Evergreen Air Center is the world's biggest parking lot for unwanted aircraft. Airlines pay a monthly fee from $750 to $5,000 to mothball their unneeded airplanes there. Its location is on 1,600 acres of Arizona desert near Tucson. The Southwest climate of dry, warm air serves as a cheap and effective airplane preservative against rust. Evergreen's location is A) a competency. B) a sustainable advantage. C) a competitive identity. D) a core benefit proposition. E) an innovative distinction.
Version 1
61
168)
A competitive advantage refers to
A) the cluster of benefits that an organization promises customers to satisfy their needs. B) those characteristics of a product that make it superior to competitive substitutes. C) a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. D) actions taken by a firm with the sole intent of putting a competitor out of business. E) the added value given to a product beyond the functional benefits provided.
169) A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation, is referred to as a A) creative advantage. B) marketing edge. C) distinctive competency. D) competitive advantage. E) core benefit.
170) WW International, formerly Weight Watchers, is a weight-management company with operations in about 30 countries. Consumers buy almost $5 billion of WW-branded products each year, and every week approximately 1.3 million people attend WW meetings. The company's brand recognition and meeting infrastructure are difficult for competitors to match, providing a A) viable mission. B) competitive advantage. C) tactical innovation. D) core benefit. E) sales orientation.
Version 1
62
171) St. Jude Medical makes cardiovascular medical devices, including the world's most widely used mechanical heart valve. Its products include tissue heart valves, pacemakers, and implantable cardiovascular defibrillators. St. Jude's innovation in cardiac devices helps it outperform rivals, and thus provides it with a A) competitive advantage. B) set of core values. C) core benefit proposition. D) marketing edge. E) viable mission.
172) Netflix is a company that delivers DVD movies and television programming to consumers either by mail or streaming over the Internet. It faces many competitors, but continues to grow both in the United States and abroad. Part of what has driven success in recent years is its original content, with movies and shows likeOuter Banks andAll American, popular programming that cannot be seen elsewhere. Its original content provides Netflix's A) viable mission. B) competitive advantage. C) tactical innovation. D) core benefit. E) sales orientation.
173) Men's Wearhouse caters to the man who doesn't necessarily enjoy shopping. Its stores are in free-standing locations (not inside the mall) so customers can get in and out quickly. Additionally, Men's Wearhouse targets the budget-conscious consumer with suit prices ranging from $150 to $850. The location of its stores and its pricing strategy both are part of Men's Wearhouse's
Version 1
63
A) competitive advantage. B) core values. C) core benefit proposition. D) marketing edge. E) viable mission.
174) The online retailer Lands' End communicates a remarkable commitment to its________Blank with these unconditional words: "Guaranteed. Period." A) competitive advantage B) core values C) core benefit proposition D) customers E) mission statement
175) Lands' End is primarily a catalog and online clothing retailer. This means that traditional department stores, mass merchandisers, specialty shops, and other catalog retailers are considered to be Lands' End's A) consideration set. B) industry. C) competitors. D) target market. E) stakeholders.
176) Which of these best describes the principal or direct competitors to Lands' End, the catalog and online clothing retailer?
Version 1
64
A) all Internet retailers B) other Internet retailers that sell primarily clothing C) all other lifestyle brands D) other clothing retailers, both online and store-only E) other retailers that began selling with catalogs
177) Two commonly used techniques to aid managers with important decisions for setting a direction and allocating resources include________Blank and________Blank analysis strategies. A) micromarketing; macromarketing B) business portfolio; diversification C) investment; divestment D) dashboards; metrics E) subjective; objective
178) The Boston Consulting Group uses________Blank to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) or offerings as though they were a collection of separate investments. A) target marketing B) synergy analysis C) market-product grids D) business portfolio analysis E) diversification analysis
179) The Boston Consulting Group uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) or offerings
Version 1
65
A) as if each were a separate investment. B) to establish their worth to society at large. C) to determine which would be suited for a SWOT analysis. D) to determine which units are candidates for diversification analysis. E) to determine which units can be divided into smaller, tactical business units.
180)
Business portfolio analysis refers to
A) a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products. B) a technique that managers use to graphically track their firm's strategic business units as though they were a single expense in order to identify cost-cutting measures. C) a technique that managers use to quantify performance measures and growth targets to analyze their firm's strategic business units as though they were a collection of separate investments. D) an analysis that uses percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm. E) a tool that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
181) A technique that managers use to categorize strategic business units as question marks, stars, cash cows, or dogs is A) an investment (ROI) analysis. B) a synergy analysis. C) a marketing audit. D) a diversification analysis. E) a business portfolio analysis.
Version 1
66
182)
The purpose of business portfolio analysis is to
A) add or delete product line and brand extensions. B) search for growth opportunities from among current and new markets as well as current and new products. C) alter a product's characteristic, such as its quality, performance, or appearance, to increase its value to customers and increase sales. D) determine which strategic business unit or offering generates cash and which one requires cash to fund the organization's growth opportunities. E) seek opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
183) In the Boston Consulting Group (BCG) business portfolio model for analysis of a firm's strategic business units, or SBUs, the vertical axis represents A) market growth rate. B) marketing efficiencies. C) industry attractiveness. D) market segment size. E) relative market share.
184) In the Boston Consulting Group (BCG) business portfolio model for analysis of a firm's strategic business units, or SBUs, the horizontal axis represents A) market growth rate. B) marketing efficiencies. C) industry attractiveness. D) market segment size. E) relative market share.
Version 1
67
185) In the BCG business portfolio model, a relative market share of 10 × at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor, whereas a relative market share of 0.1 × at the right end of the scale on its horizontal axis means that the A) SBU has only 10 percent of the share of its average competitor. B) SBU has 100 percent of the share of its largest competitor. C) growth rate between the SBU and the next largest competitor is actually identical. D) SBU has only 10 percent of the share of its largest competitor. E) industry growth rate is declining.
186) All of these are names the Boston Consulting Group (BCG) has given to describe the four quadrants in its growth-share matrixexcept which? A) dogs B) stars C) tortoises D) cash cows E) question marks
187) The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Cash cows are SBUs that are classified as having A) high market growth rates and high relative market shares. B) low market growth rates but high relative market shares. C) low market growth rates and low relative market shares. D) high market growth rates but low relative market shares. E) medium market growth rates and medium relative market shares.
Version 1
68
188) Strategic business units (SBUs) with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are A) cash cows. B) stars. C) question marks. D) dogs. E) exclamation points.
189) Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it needed the cash generated from a product line that had a dominant market share in the slow-growth small appliance industry. GE's small appliances product line is most likely a________Blank for Black & Decker. A) dog B) cash cow C) camel D) star E) question mark
190) The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are SBUs that are classified as having A) high market growth rates and high relative market shares. B) low market growth rates but high relative market shares. C) low market growth rates and low relative market shares. D) high market growth rates but low relative market shares. E) medium market growth rates and medium relative market shares.
Version 1
69
191) Strategic business units (SBUs) with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as A) dogs. B) sprouts. C) question marks. D) stars. E) cash cows.
192) Solarcom is a 30-year-old information technology company that owns several subsidiaries. One of its subsidiaries is Atlantix Global Systems, which is one of the leading wholesalers for refurbished computer equipment. It has a large share of an industry that is growing worldwide. According to the BCG business portfolio analysis framework, Atlantix Global would most likely be classified as a A) dog. B) cash cow. C) question mark. D) sprout. E) star.
193) Strategic business units with a low share of high-growth markets that may require large cash injections of cash just to maintain market share are referred to as A) dogs. B) cash cows. C) question marks. D) stars. E) elephants.
Version 1
70
194) The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Question marks are SBUs that are classified as having A) high market growth rates and high relative market shares. B) low market growth rates but high relative market shares. C) low market growth rates and low relative market shares. D) high market growth rates but low relative market shares. E) medium market growth rates and medium relative market shares.
195) Strategic business units (SBUs) with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as A) turkeys. B) cash cows. C) stars. D) question marks. E) dogs.
196) The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Dogs are SBUs that are classified as having A) high market growth rates and high relative market shares. B) low market growth rates but high relative market shares. C) low market growth rates and low relative market shares. D) high market growth rates but low relative market shares. E) medium market growth rates and medium relative market shares.
Version 1
71
197) In its business portfolio analysis, an organization's strategic business units (SBUs) often start as________Blank and eventually become________Blank. A) dogs; question marks B) question marks; stars C) stars; question marks D) stars; dogs E) question marks; dogs
198) While hybrid vehicles are very fuel-efficient, they are also expensive to purchase. Still, hybrid vehicles sales have a compound annual growth rate of 88.6 percent in recent years. Several years ago, the Honda Motor Co. unveiled the hybrid version of the Honda Civic. Sales of the Civic eventually surpassed those of the Toyota Prius, making it the top-selling hybrid car in the United States. For years, Honda has experienced tremendous success with its Accords; these Honda cars are the top-selling automobiles in the United States. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG business portfolio analysis matrix? A) The hybrid Civic is a star; the Accord is a cash cow. B) The hybrid Civic is a cash cow; the Accord is a star. C) Due to the overwhelming success of Honda cars, both the Accord and the hybrid Civic are cash cows. D) The hybrid Civic is a dog; the Accord is a cash cow. E) The hybrid Civic is a dog; the Accord is a star.
Version 1
72
199) In Figure 2-4, a representation of the BCG business portfolio analysis, SBUs found in quadrant A would be called
A) cash cows. B) question marks. C) dogs. D) lightning strikes. E) stars.
Version 1
73
200) In Figure 2-4, a representation of the BCG business portfolio analysis, SBUs found in quadrant B would be called
A) cash cows. B) stars. C) question marks. D) dogs. E) jackrabbits.
Version 1
74
201) In Figure 2-4, a representation of the BCG business portfolio analysis, SBUs found in quadrant C would be called
A) cash cows. B) stars. C) question marks. D) dogs. E) speedbumps.
Version 1
75
202) In Figure 2-4, a representation of the BCG business portfolio analysis, SBUs found in quadrant D would be called
A) cash cows. B) stars. C) question marks. D) treasure chests. E) dogs.
203) To move an SBU from its current position on a BCG business portfolio analysis, a manager should concentrate mostly on
Version 1
76
A) influencing the relative market share. B) enhancing employee motivation to move a low-valued SBU to a higher one. C) adding a variety of new SBUs that will force out older ones. D) influencing the market growth rate. E) simplifying its offerings by removing features.
204) Because an organization has limited influence on market growth rate, its main alternative for moving an SBU on the portfolio analysis matrix is to try to change its relative market share. The most likely way for a company to turn a question mark into a star rather than a dog is to A) divert funds to other SBUs. B) reduce advertising for it. C) inject cash into it. D) reduce the feature set for it. E) decrease the market growth rate.
205) Apple's iPod sold more than 50 million units annually between 2001 and 2010 when the iPhone integrated a music player. Since then sales have been declining dramatically and in 2014 Apple announced that it was discontinuing the iPod classic, and in 2017 it did the same with the nano and the shuffle. Today Apple still sells the iPod touch although declining sales and discontinued products suggest that this SBU is has become a A) question mark. B) star. C) ghost. D) cash cow. E) dog.
Version 1
77
206) Apple recently entered the financial services market with its version of a credit card, the Apple Card. The card competes with other credit cards and various financial payment technologies such as Paypal, Venmo, and Android Pay. Industry analysts estimate that 6 out of 10 Americans have a credit card and that credit card use has grown by 42 percent in the past 7 years. The Apple Card entered the market as a A) question mark. B) raptor. C) rocketship. D) cash cow. E) dog.
207) Apple launched the iPhone in 2007, had very strong sales, and its market share now exceeds 56 percent. The global smartphone market is expected to grow at an annual rate of 1–2 percent, slowing significantly since 2015. Although Apple's iPhone SBU was once a star, it seems to be becoming a A) question mark. B) lemon. C) snowman. D) cash cow. E) dog.
208)
One of the strengths inherent in the use of the BCG business portfolio analysis is that it
Version 1
78
A) is based solely on company perception rather than actual data. B) considers all factors that might impact an SBU's value to an organization. C) acts as a strong motivational tool for employees in SBUs that have been labeled "dogs" or "question marks." D) forces a firm to place each of its SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers or cash users in the future. E) identifies specific marketing strategies and marketing tactics on how to solve SBU shortcomings.
209)
One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it A) causes tension between different divisions when one is labeled a "star" and another a
"dog." B) reduces employee motivation to move a low valued SBU to a higher one. C) considers too many SBU factors beyond market growth rate and relative market share. D) does not require sales forecasts in order to be implemented. E) is often difficult to obtain the needed information to correctly place SBUs in the matrix.
210) A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is A) diversification analysis. B) business portfolio analysis. C) a market-product grid framework. D) synergy analysis. E) market segmentation.
211)
Diversification analysis refers to
Version 1
79
A) a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. B) a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. C) a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. D) a technique used to determine the appeal of each SBU or offering and then the amount of cash, if any, each should receive. E) a framework that identifies four "generic" strategies to achieve a competitive advantage.
212)
Which statement regarding diversification analysis is most accurate?
A) Companies should only use diversification analysis if they are well-established; new companies that use this process run the risk of trying to do too much too soon. B) For any product, there is both a current and a new market; for any market, there is both a current and a new product. C) Most companies discover that there is at least one product that is targeted to the wrong market. D) Diversification analysis is only effective for consumer products. E) Diversification analysis is used to forecast and calculate industry sales for new products.
213)
A marketing strategy to increase sales of current products in current markets is A) market penetration. B) market development. C) product development. D) diversification. E) marketing synergy.
Version 1
80
214)
Market penetration refers to the marketing strategy of A) selling current products to new markets. B) selling new products to new markets. C) selling new products to current markets. D) selling the same brands in both current and new markets. E) increasing sales of current products in current markets.
215) be to
One way a company can benefit from implementing a market penetration strategy would
A) sell more products at a lower price in new markets. B) sell the same amount of product at a higher price in the same market. C) find a new market and sell the product at a much higher price. D) alter the product and sell it to a new market. E) reduce promotion and distribution costs to improve production efficiencies for the product in reaching new markets.
216) When using a________Blank strategy, there is no change in either the basic product line or the markets served. Instead, increased sales are generated by selling either more products through better promotion or distribution or the same number of products at a higher price. A) product development B) market development C) diversification D) market saturation E) market penetration
Version 1
81
217) If Ben & Jerry's sold more units of its Chocolate Chip Cookie Dough super premium ice cream to U.S. consumers as a result of increased promotion while keeping its price per pint the same, it would be using a________Blank strategy. A) product development B) market development C) market penetration D) diversification E) market saturation
218) If sales revenues for Starbucks VIA Instant coffee sold to U.S. consumers increased as a result of a new ad campaign, it would be using a________Blank strategy. A) product development B) market development C) market penetration D) diversification E) market saturation
219)
The marketing strategy to sell current products to new markets is A) market penetration. B) market infiltration. C) market development. D) product development. E) diversification.
220)
Market development refers to the marketing strategy of
Version 1
82
A) increasing sales of current products in current markets. B) selling new products to new markets. C) selling new products to current markets. D) selling the same brands in both current and new markets. E) selling current products to new markets.
221) If Ben & Jerry's starts selling its super premium ice cream in Brazil for the first time, it would be using a________Blank strategy. A) product development B) market development C) diversification D) market saturation E) market penetration
222) Part of the growth strategy for Yum! Brands, the parent company of KFC, Pizza Hut, and Taco Bell, is expansion of its current fast-food businesses into untapped international markets, such as China, Russia, and India. This type of expansion would be a________Blank strategy. A) product development B) market penetration C) diversification D) market development E) market saturation
223)
The marketing strategy of selling new products to current markets is referred to as
Version 1
83
A) product penetration. B) product development. C) market development. D) diversification. E) market penetration.
224)
Product development refers to the marketing strategy of A) increasing sales of current products in current markets. B) selling current products to new markets. C) selling new products to new markets. D) selling new products to current markets. E) selling the same brands in both current and new markets.
225) If Ben & Jerry's sold a line of new "Get the Dough Out of Politics" T-shirts in its stores targeting its ice cream customers in the United States, it would be using a________Blank strategy. A) product development B) market development C) market penetration D) diversification E) market saturation
226) During Super Bowl 50, Taco Bell unveiled a new offering for the U.S. market, the "quesalupa," a hybrid of a quesadilla and a chalupa. Here, Taco Bell was using a________Blank strategy.
Version 1
84
A) product development B) market development C) market penetration D) diversification E) market saturation
227) The marketing strategy of developing new products and selling them in new markets is referred to as A) product penetration. B) product development. C) market development. D) market penetration. E) diversification.
228)
Diversification refers to the marketing strategy of A) increasing sales of current products in current markets. B) selling current products to new markets. C) selling new products to new markets. D) selling new products to current markets. E) selling the same brands in both current and new markets.
229) Which of the marketing strategies for expanding sales revenue presents the most risk for an organization?
Version 1
85
A) product development B) product-market evolution C) market development D) market penetration E) diversification
230) If Target opened a pop-up shop in Japan, where it currently has no stores, to sell fishing reels, it would be using a________Blank strategy. A) product development B) market development C) market penetration D) diversification E) market saturation
231)
The image depicted in Figure 2-5 represents what strategic analysis technique?
Version 1
86
A) Gantt chart B) SWOT analysis C) Pert chart D) BCG growth-share matrix E) Diversification analysis
232)
Quadrant A in Figure 2-5 represents the marketing strategy of
A) market penetration. B) product development. C) market development. D) product penetration. E) diversification.
Version 1
87
233)
Quadrant B in Figure 2-5 represents the marketing strategy of
A) market penetration. B) product penetration. C) market development. D) product development. E) diversification.
234) Taco Bell sells Doritos Locos Tacos in the United States, with shells made out of Nacho Cheese Doritos. At introduction, the chain sold 100 million tacos in the first 10 weeks alone, its most popular product launch of all time. Considering Figure 2-5, this is an example of a ________Blank strategy that would be found in quadrant ________Blank.
Version 1
88
A) market penetration; A B) product development; B C) diversification; D D) market development; C E) product-market expansion; D
235)
Quadrant C in Figure 2-5 represents the marketing strategy of
A) product development. B) market penetration. C) market development. D) product penetration. E) diversification.
Version 1
89
236)
Quadrant D in Figure 2-5 represents the marketing strategy of
A) market penetration. B) product penetration. C) market development. D) product development. E) diversification.
Version 1
90
237) LEGO has traditionally been successful selling its classic construction sets to boys. Recently, LEGO introduced a line of building toys especially for girls called LEGO Friends. Although based on the same construction bricks and detailed instructions, the line included female characters, pink and purple theme colors, and allowed girls to construct more storyrelated pieces. Considering Figure 2-5, this is an example of a ________BlankBlank strategy that would be found in quadrant ________.
A) diversification; D B) market penetration; A C) product development; B D) market development; C E) product-market evolution; D
238) Which two marketing strategies would be used if a firm were not willing to find new markets? A) product development and market penetration B) product development and diversification C) market development and product development D) market development and market penetration E) market development and diversification
Version 1
91
239)
The strategic marketing process
A) involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it. B) is a technique to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were a collection of separate investments. C) describes an organization's appraisal of its internal strengths and weaknesses and its external opportunities and threats. D) is an approach whereby an organization allocates its marketing mix resources to reach its target markets and achieves a competitive advantage. E) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
240) An approach whereby an organization allocates its marketing mix resources to reach its target markets and achieves a competitive advantage is A) the tactical marketing process. B) situational analysis. C) diversification analysis. D) synergy analysis. E) the strategic marketing process.
241) Which of the following isnot one of the four guiding principles that underlie the strategic marketing process? A) Competitors change and react. B) Customers are different. C) Organizational resources are limited. D) Customers change. E) Management changes.
Version 1
92
242) Within the strategic marketing process, the________Blank is the result of the planning phase, which will be carried out in the implementation phase. A) marketing agenda B) business plan C) product protocol D) marketing plan E) marketing strategy
243)
The key steps of planning, implementation, and evaluation are part of A) gap analysis. B) the strategic marketing process. C) situational analysis. D) synergy analysis. E) diversification analysis.
244) What are the three steps involved in the planning phase of the strategic marketing process? A) Step 1: situation (SWOT) analysis; Step 2: market-product focus, customer value proposition, and goal setting; and Step 3: the marketing program B) Step 1: analysis; Step 2: planning; and Step 3: implementation C) Step 1: set market and product goals; Step 2: select target markets and find points of difference; and Step 3: position the product D) Step 1: identify industry trends; Step 2: analyze competitors; and Step 3: assess own organization E) Step 1: Why do we exist?; Step 2: What will we do?; and Step 3: How will we do it?
Version 1
93
245)
The initial step in the planning phase of the strategic marketing process involves A) establishing the budget. B) developing the marketing program. C) diversification analysis. D) auditing the marketing plan. E) conducting a situation (SWOT) analysis.
246)
Step 2 in the planning phase of the strategic marketing process consists of A) the situation (SWOT) analysis. B) market-product focus, customer value proposition, and goal setting. C) the marketing program. D) business portfolio analysis. E) diversification analysis.
247)
Step 3 in the planning phase of the strategic marketing process consists of A) diversification analysis. B) the situation (SWOT) analysis. C) the marketing program. D) the market-product focus, customer value proposition, and goal setting. E) business portfolio analysis.
248) Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it is
Version 1
94
A) tactical planning. B) market planning. C) goal setting. D) environmental scanning. E) situation analysis.
249)
A situation analysis refers to
A) taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it. B) an appraisal of an organization's cash flow and financial ratios to access its health and the potential for new investment. C) the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. D) a technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were separate investments. E) the process where a firm searches for growth opportunities from among current and new markets as well as current and new products.
250) A situation analysis requires a firm to consider the external forces and trends that affect it, both favorable and unfavorable. Which scenario is an example of an external force? A) The firm buys its own fleet of trucks, so it no longer needs to hire a trucking company for distribution. B) A hiring freeze is put into place. Although no one is fired, no one can be hired. C) A goal is set to decrease production costs with new equipment. D) A city government bans plastic straws inside all restaurants and bars in the city limits. E) Shareholders are rewarded with a sizable dividend check.
Version 1
95
251)
The acronym SWOT, as in SWOT analysis, stands for A) strengths, weaknesses, opportunities, and tactics. B) strengths, weaknesses, options, and tactics. C) strengths, weaknesses, opportunities, and threats. D) simple, workable, optimal, and timely. E) state the problem, work out a strategy, organize your team, and take action.
252)
An effective summary tool for an organization's situation analysis is A) a SWOT analysis. B) strategic management planning. C) diversification analysis. D) a market-product grid analysis. E) marginal analysis.
253) In the 1980s, a lapse in production quality and an increase in Japanese imports drove the Harley-Davidson motorcycle company to the brink of bankruptcy. The company's super heavyweight market share had shrunk from over 40 percent in the mid-1970s to 23 percent in 1983. But by 1989, Harley-Davidson controlled some 65 percent of this market segment. From a marketing perspective, what was the most likely first step in Harley-Davidson's resurgence? A) developing a new mission statement B) repositioning its products in the minds of super heavyweight motorcycle buyers C) performing a SWOT analysis to assess the firm's internal and external environments D) selling new models of super heavyweight motorcycles in both the United States (current) and foreign (new) markets E) improving the quality of its products and communicating this to motorcycle buyers
Version 1
96
254) Procter & Gamble (P&G) is a consumer packaged goods company where innovation is a key competitive advantage. This allows the firm to develop products like Tide Pods and Cascade Platinum that consumers love. P&G also uses its marketing expertise to develop unique product placements on television shows that highlight its brands. A SWOT analysis for P&G would indicate that innovation in product design and marketing is a(n)________Blank for the firm. A) strength B) weakness C) threat D) opportunity E) problem
255) Hellmann's is a brand owned by Unilever that produces mayonnaise, among other food products. If a marketing manager at Hellman's identified that its brand managers lacked the expertise to create additional growth for the firm's products, she would likely incorporate this knowledge into its SWOT analysis as A) a weakness if the company does not have access to other expertise at Unilever. B) a strength if the company conceals this information from its competitors. C) an opportunity if Hellman's competitors have superior expertise. D) a threat if Hellman's does not have resources to develop additional expertise. E) part of a marketing plan; this information would not be part of a SWOT analysis.
256) All of these form the foundation upon which a firm builds its marketing program during the strategic marketing processexcept which? A) Research the organization's present and prospective customers. B) Determine what business the organization is in. C) Assess the organization itself. D) Identify trends in the organization's industry. E) Analyze the organization's competitors.
Version 1
97
257)
The goal of a SWOT analysis is to
A) identify market research questions in order to develop new products for new market segments. B) determine how raises, bonuses, and dividends will be paid. C) reorganize the firm's marketing department. D) identify the critical strategy-related factors that can impact the firm. E) fairly allocate governmental resources and financial aid across the industry.
258) All of these are marketing actions that can be taken as a result of a SWOT analysisexcept which? A) exploit an opportunity B) enhance sales with action C) avoid a disaster-laden threat D) build on a strength E) correct a weakness
Version 1
98
259) Consider Figure 2-7. A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits that include food bars, a water filtration system, and first aid supplies. The firm has a great reputation with its flashlights and does not want to ruin it. The company's reputation would fall in which quadrant(s) of the SWOT analysis grid?
A) A B) B C) C D) D E) A and C
Version 1
99
260) Consider Figure 2-7. A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits. The firm's physical plant could be refitted relatively easily to make small generators, but it would be rather costly. The company's need to refit its factory would fall in which quadrant(s) of the SWOT analysis grid?
A) A B) B C) C D) D E) both B and D
Version 1
100
261) Consider Figure 2-7. A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits that include food bars, a water filtration system, and first aid supplies. Although there are nine named hurricanes forecasted for the upcoming year, no one really can predict what will happen. The projected number of hurricanes would fall in which quadrant(s) of the SWOT analysis grid?
A) A B) B C) C D) D E) both C and D
Version 1
101
262) Consider Figure 2-7. A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in a loss of power. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits. The company would have to rely on another firm to manufacture and package the survival kits. This production issue would fall in which quadrant(s) of the SWOT analysis grid?
A) A B) B C) C D) D E) both C and D
Version 1
102
263)
Quadrant A in Figure 2-7 represents a(n) ________Blank in a SWOT analysis.
A) threat B) weakness C) strength D) opportunity E) market segment
Version 1
103
264)
Quadrant B in Figure 2-7 represents a(n) ________Blank in a SWOT analysis.
A) threat B) weakness C) strength D) opportunity E) market segment
Version 1
104
265)
Quadrant C in Figure 2-7 represents a(n) ________Blank in a SWOT analysis.
A) threat B) weakness C) strength D) opportunity E) market segment
Version 1
105
266)
Quadrant D in Figure 2-7 above represents a(n) ________Blank in a SWOT analysis.
A) threat B) weakness C) strength D) opportunity E) market segment
267) Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as A) market aggregation. B) market segmentation. C) product sorting. D) product grouping. E) mass marketing.
Version 1
106
268)
Market segmentation refers to
A) identifying small groups of customers with dissimilar needs. B) aggregating prospective buyers into groups and selecting only those whose needs cannot be met by competitors' products. C) aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. D) aggregating different products into more reasonable product groupings to better serve consumers' needs. E) those characteristics of a product that make it superior to competitive substitutes.
269)
Market segmentation is a part of what step in the strategic marketing process? A) situation analysis B) market-product focus, customer value proposition, and goals C) marketing program D) implementation E) evaluation
270) To develop a successful marketing plan for a soft drink, the process of________Blank would most likely be used to group consumers on the basis of whether they prefer sugar-free and caffeine-free soda, caffeine-free sugared soda, or regular soda with sugar and caffeine. A) market aggregation B) product alignment C) customer grouping D) mass marketing E) market segmentation
Version 1
107
271) The cluster of benefits that an organization promises customers to satisfy their needs is referred to as a A) core benefit proposal. B) product protocol. C) marketing program. D) marketing mix. E) customer value proposition.
272)
A customer value proposition is
A) the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. B) a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers. C) a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. D) the characteristics of a product that make it superior to competitive substitutes. E) the cluster of benefits that an organization promises customers to satisfy their needs.
273) Michelin's________Blank can be summed up as "providing safety-conscious parents greater security in tires at a premium price." A) customer value proposition B) protocol C) mission statement D) core value set E) marketing program
274)
Those characteristics of a product that make it superior to competitive substitutes are
Version 1
108
A) core benefit propositions. B) marketing mix elements. C) points of difference. D) marketing attributes. E) product protocols.
275)
Points of difference refer to
A) the fundamental, passionate, and enduring principles of an organization that guide its conduct over time. B) the cluster of benefits that an organization promises customers to satisfy their needs. C) a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. D) those characteristics of a product that make it superior to competitive substitutes. E) the use of percentage points of market share to allocate marketing resources effectively for different product lines within the same firm.
276) Which pair of experience attributes are most likely to result in customer willingness to pay more? A) fun and a loyalty program B) brand image and global presence C) convenience and knowledgeable service D) charitability and personalization E) atmosphere and human interaction
277) At which step of the planning stage of the strategic marketing process does a firm develop its marketing mix?
Version 1
109
A) situation analysis B) customer value proposition C) marketing program D) implementation E) market segmentation
278) The marketing program, Step 3 in the strategic planning process, answers which question? A) who B) what C) when D) why E) how
279)
The________Blank element of the marketing mix includes features and packaging. A) product B) price C) promotion D) place E) people
280)
The________Blank element of the marketing mix includes discounts and allowances.
Version 1
110
A) product B) price C) promotion D) place E) people
281) The________Blank element of the marketing mix includes personal selling and advertising. A) product B) price C) promotion D) place E) people
282)
The________Blank element of the marketing mix includes outlets and transportation. A) product B) price C) promotion D) place E) people
283) Alcatel offers a simple cell phone with calling and an FM radio for use in most international markets. This an example of Alcatel's
Version 1
111
A) evaluation strategy. B) price strategy. C) place strategy. D) promotion strategy. E) product strategy.
284) Medtronic, a company that makes heart pacemakers, introduced a new product at medical conventions across Asia to demonstrate its many beneficial features. The convention presentations are an example of its A) market segmentation and targeting strategy. B) price strategy. C) place strategy. D) promotion strategy. E) product strategy.
285) Volvo offers incentives of up to $1000 off a new vehicle to both current owners of a Volvo and active duty military and veterans. This is an example of a firm's A) market segmentation and targeting strategy. B) price strategy. C) place strategy. D) promotion strategy. E) product strategy.
286) Unilever distributes its Lipton tea products in part through independent brokers, agents and distributors to chain, wholesale, co-operative and independent grocery accounts, and food service. This is an example of a firm's
Version 1
112
A) market segmentation and targeting strategy. B) price strategy. C) place strategy. D) promotion strategy. E) product strategy.
287)
The second phase of the strategic marketing process is the________Blank phase. A) tactics B) strategic C) planning D) implementation E) evaluation
288) In which phase of the strategic marketing process does a firm obtain resources, design the marketing organization, define tasks and deadlines, and execute the marketing program? A) planning phase B) implementation phase C) evaluation phase D) strategic phase E) tactics phase
289) All of these are components of the implementation phase of the strategic marketing processexcept which?
Version 1
113
A) defining precise tasks, responsibilities, and deadlines B) executing the marketing program C) designing the marketing organization D) conducting R and D E) obtaining resources
290) The actions taken during the implementation phase of the strategic marketing process include which of these? A) Obtain resources. B) Select target markets. C) Position the product. D) Find points of difference. E) Correct deviations from expected outcomes.
291) In a typical manufacturing firm, the structure of its marketing department is typically organized from top to bottom in which of these ways? A) CEO to CFO to product manager. B) CEO to CMO to product manager. C) Product manager to marketing research manager to sales manager to promotion manager. D) Industry manager to market manager to product manager. E) Product manager to CMO to sales manager.
292) Central features of________Blank include: (1) the task; (2) the person responsible for completing that task; (3) the date to finish the task; and (4) what is to be delivered.
Version 1
114
A) an output map B) a Gantt chart C) a market schedule D) a SWOT analysis E) a marketing action memo
293)
Central features of a Gantt chart include four main items, including the A) deadline to complete a task. B) budget. C) product or service. D) points of difference. E) promotional message.
294) When participating in major projects in college marketing classes, effective teams can use a________Blank to be sure that each team member does a fair amount of work and that class projects are finished efficiently and on time. A) market-product grid B) cloverleaf schedule C) Plan-A-Gram D) Gantt chart E) sales response function
Version 1
115
295) Figure 2-11 is known as a ________Blank, which is helpful for scheduling activities when some must be completed before others can begin.
A) market-product grid B) terrace schedule C) BCG matrix D) Gantt chart E) sales response function
Version 1
116
296)
Which task shown in Figure 2-11 must be done sequentially rather than concurrently?
A) 1 and 2 B) 2 and 3 C) 3 and 4 D) 5 and 6 E) 6 and 7
297)
The key to all scheduling techniques is to
A) avoid scheduling tasks that can be done concurrently. B) avoid tasks that must be done sequentially. C) make sure to allow a 20 percent delay factor to account for contingencies. D) assign responsibility for end results to the entire group rather than a single individual. E) distinguish tasks that must be done sequentially from those that can be done concurrently.
Version 1
117
298) A marketing________Blank is defined as the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. A) plan B) tactic C) strategy D) concept E) action
299)
A marketing strategy refers to
A) the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. B) the tactical decisions made to implement the marketing program. C) a technique to quantify performance measures and growth targets of a firm's strategic business units (SBUs). D) a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. E) the detailed day-to-day operational decisions.
300)
A marketing strategy typically addresses both the________Blank and the________Blank. A) product groupings; target markets B) target market; marketing program C) subjective; objective goals D) revenues generated; market share achieved E) feasibility; time required to implemen
Version 1
118
301) A marketing strategy is the means by which a marketing goal is to be achieved. The two parts that usually characterize a marketing strategy are A) specific organizational goals and objectives. B) a detailed marketing plan and a marketing budget. C) marketing strategies and marketing tactics. D) a specified target market and a marketing program to reach it. E) marketing metrics and marketing dashboards to track effectiveness.
302) Which statement reflects the key elements in developing a marketing strategy for L. M. Schofield, Inc., a company that produces specialized concrete surfaces for heavily trafficked areas such as retail outlets and amusement parks? A) Subscribe to all the major trade journals to determine the offerings of competitors. B) Communicate with contractors using direct mail about the various walking surfaces Schofield can create for riding and walking paths. C) Design a sample ad and test it using visitors at a trade show. D) Hire six new sales representatives for the Midwest regional office and train them on all aspects of concrete surfaces. E) Conduct a focus group to decide on which surface to use for a theme park in Brazil.
303)
Marketing tactics are the
A) long-term decisions made to implement the marketing program and the monitoring of those decisions. B) detailed day-to-day operational decisions essential to the overall success of marketing strategies. C) steps taken to develop an effective marketing plan. D) development of marketing strategies to achieve the organization's marketing objectives. E) refinement of the organization's mission based on the results obtained from a marketing audit.
Version 1
119
304) The detailed day-to-day operational decisions essential to the overall success of marketing strategies are A) marketing plans. B) marketing programs. C) marketing tactics. D) marketing strategies. E) marketing procedures.
305)
Compared to marketing strategies, marketing tactics generally involve actions that A) are detailed day-to-day operational decisions. B) are long-term rather than short-term. C) involve upper levels of management rather than front-line managers. D) are general rather than specific in nature. E) have been successfully implemented in the past.
306) Marketers at Volkswagen in Istanbul created a digital flip film out of some 200 photos to tout the prowess of their new truck, the Amarok, hoping it would be a clever way to get people to engage. This action is an example of Volkswagen's marketing A) tactics. B) missions. C) visions. D) strategies. E) customer values.
Version 1
120
307) Eileen Fisher is a leader in sustainable fashion. For a month, shoppers could visit an Eileen Fisher Renew pop-up shop in Bellingham, WA, to purchase gently worn or slightly flawed pieces as a way to lessen the fashion footprint. Use of a pop-up shop to sell these items is one of Eileen Fisher's A) missions. B) visions. C) strategies. D) tactics. E) customer value.
308)
The strategic marketing process involves three phases: planning, implementation, and A) review. B) execution. C) evaluation. D) goal revision. E) correction.
309)
The third and final phase of the strategic marketing process is the________Blank phase. A) tactics B) strategic C) planning D) implementation E) evaluation
310)
The two major aspects of the evaluation phase of the strategic marketing process are
Version 1
121
A) segmenting the market and selecting target markets. B) establishing a business mission and designing measurable goals and objectives. C) designing the marketing mix and setting the budget. D) comparing the results of the marketing program with the goals to identify deviations and acting on them. E) executing the marketing plan and designing the marketing organization.
311) The actions taken during the evaluation phase of the strategic marketing process include comparing results with plans to identify deviations and A) starting the planning process anew. B) executing the marketing program. C) tracking sales and revenues and comparing with competitors. D) developing the budget by estimating revenues, expenses, and profits. E) exploiting positive deviations and correcting negative ones.
312) The difference between the projection of the path to reach a new sales revenue goal and the projection of the path of the results of a plan already in place is the A) planning gap. B) contribution margin. C) point of difference. D) break-even point. E) sales response function.
313)
The planning gap refers to
Version 1
122
A) the difference between projected total costs and realized total revenues. B) the difference between projected total costs and net profits. C) the difference between marginal revenue and marginal cost. D) the percentage point difference between a firm and its next largest competitor in terms of market share. E) the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of the results of a plan already in place.
314)
The wedge labeled DBC in Figure 2-12 represents the
A) contribution margin. B) marginal trend. C) breakeven point. D) planning gap. E) sales differential.
Version 1
123
315) Based on the information in Figure 2-12, the planning gap between 2009 and 2018, as represented by the wedge labeled DBC
A) is widening. B) is narrowing. C) is staying the same. D) cannot be quantified. E) began to open in 2004.
Version 1
124
316) Based on the sales revenue data shown in Figure 2-12, as a marketing manager for Apple, you would most likely conclude that
A) the planning gap is narrowing. B) the actual sales results (line BE) tracked fairly well with the 2009 plan (line BD). C) the actual sales results (line BE) underperformed the 2009 plan (line BC). D) sales have slowed significantly since 2009 (line BC). E) the 2009 plan (line BD) was far too aggressive and could not be achieved.
317) When evaluations show that actual performance differs from expectations, firms typically attempt to
Version 1
125
A) decide if the time horizon should be increased or decreased. B) perform a SWOT analysis with their major competitor as the principal focus. C) use statistical linear trend analysis to interpret the results. D) exploit a positive deviation or correct a negative deviation. E) adopt a market-product grid to analyze the sales results.
318) A planning gap is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place. The ultimate purpose of the firm's marketing program is to________Blank this planning gap. A) calculate the contribution margin of B) calculate the marginal trend of C) create the break-even point for D) fill in E) determine the sales differential of
319) Evergreen Air Center is the world's largest parking lot for unwanted commercial aircraft. . Prior to September 2001, the company had 140 discarded airplanes and was growing at a net rate of about four planes monthly. After 9/11, airlines retired over 1,000 planes, and the actual number of planes stored at Evergreen differed significantly from its earlier prediction. Evergreen needed a new marketing plan; without one, the company would see a widening of the A) contribution margin. B) planning gap. C) marginal trend. D) break-even point. E) sales differential.
320) The marketing manager looks for two kinds of deviations during the evaluation phase, each triggering a different kind of action: actual results fall short of goals or
Version 1
126
A) deviations result from major shifts in customer needs. B) actual results exceed goals. C) there is a lack of deviations when they should exist. D) deviations result from executive mandates. E) deviations are blamed on insufficient marketing support (personnel or funding).
321) Alex has just completed measuring the results of her firm's product performance. Her next step will be to A) do a profitability analysis. B) take necessary corrective actions. C) bring these to the marketing auditor. D) proceed regardless of deviations from original plans. E) compare the results against the goals specified in the marketing plan.
322) IBM's business strategy to help its clients prepare for a world that is infused with digital intelligence and a world where humans and machines work side-by-side to do things that humans cannot do alone is known as A) "The IBM Way." B) "Let’s Put Smart to Work." C) "Reinvent Business." D) "The 2020 Road Map." E) "Big Blue."
323)
Which of these is a core value underlying business practices at IBM?
Version 1
127
A) fast failure in research and development B) honoring the contributions of important leaders C) rapid but sustainable growth D) influencing of popular culture E) innovation that matters for the company and for the world
324) All of these are important branded offerings that will meet IBM's customer needs into the futureexcept which? A) artificial intelligence capable of analyzing company and consumer data B) industry-specific consulting services C) entertainment-focused PCs and hard disk drives D) enterprise-strength cloud capabilities E) advanced cybersecurity
325) Marketing professionals at IBM use which word to describe their marketing practices and methodologies? A) honest B) innovative C) customized D) relevant E) agile
326) The marketing plan for IBM's "Let’s Put Smart to Work" strategy includes which of these marketing tactics?
Version 1
128
A) handing out "Let’s Put Smart to Work" T-shirts on select college campuses throughout the world B) providing samples of new hard drives to Fortune 500 businesses C) advertising inOutdoor magazine D) sponsoring the Masters golf tournament E) garnering a celebrity endorsement from Trevor Noah, the host of "The Daily Show"
327) Briefly describe the four levels in a hierarchical organizational structure, including the three that are strategic in nature.
328) Apple, a multimarket, multiproduct firm, manufactures and markets Apple Watch, iPods, iPhones, and iPads as a portfolio of businesses. At what organizational level does Apple set the strategic direction for these businesses to create customer value?
329)
What is a cross-functional team and how is it used?
330) Explain what a visionary organization is and the three questions (why, what, and how) that need to be answered to achieve success.
Version 1
129
331) What are the three elements that today's visionary organization must do to be forward looking and successful within its marketing environment? What is the purpose of each of these elements?
332) What is an organization's mission? What are some elements of a well-written mission statement?
333)
In 25 words or less, write a mission statement for a local community college.
334) The American railroad industry faced a serious decline in the 20th century. What business did rail executives believe they were in at that time? What business is a railroad company really in? Why is the difference important?
Version 1
130
335)
Name and briefly describe the seven types of organizational goals or objectives.
336) The logistics industry has sales of $800 billion per year. If a third-party logistics provider had sales of $8 billion, what would its market share be? Be sure to define market share and show your work in your answer.
337) Definemarketing dashboard andmarketing metric and explain how these terms are related.
338) Explain the difference between competencies and competitive advantage in an organizational setting.
339) The Boston Consulting Group's business portfolio analysis model can be used to analyze a firm's strategic business units. How is it used and what can it tell you?
Version 1
131
340) One of the most recognized approaches to business portfolio analysis is the Boston Consulting Group's growth-share matrix. Describe this tool and the four quadrants of the matrix.
341) Identify and explain each of the four market-product strategies represented by each quadrant in the diversification analysis matrix.
342) List the three steps of the planning phase of the strategic marketing process. Briefly describe what goes on during each of the three steps.
343)
Identify and describe the three phases of the strategic marketing process.
Version 1
132
344) Identify and describe the four factors in a SWOT analysis and give examples for Ben & Jerry's Ice Cream that help identify the critical strategy-related factors that could impact the firm.
345) A campus service organization annually raises money through the sale of T-shirts. How could it use market segmentation to increase sales of the shirts? Be sure to include a definition of market segmentation in your answer.
346)
What are the marketing mix elements that make up a cohesive marketing program?
347) A campus service organization annually raises money through the sale of T-shirts. What are the major components of the marketing program it should use to increase sales? Give at least one example of each.
348) What are the four components of the implementation phase of the strategic marketing process?
Version 1
133
349)
Explain what a Gantt chart is and how it is used.
350)
What is the difference between a marketing strategy and a marketing tactic?
351)
Explain the steps in the evaluation phase of the strategic marketing process.
352) What is the purpose of the evaluation phase of the strategic marketing process? How is it accomplished?
353)
Explain what a planning gap is and what is used to close it.
Version 1
134
Version 1
135
Answer Key Test name: Chap 02_16e_Kerin 1) A 2) E 3) D 4) A 5) B 6) A 7) D 8) C 9) C 10) B 11) C 12) B 13) D 14) D 15) A 16) E 17) C 18) B 19) D 20) E 21) D 22) C 23) E 24) B 25) A 26) C Version 1
136
27) E 28) C 29) A 30) D 31) C 32) A 33) B 34) B 35) B 36) C 37) A 38) D 39) E 40) B 41) A 42) B 43) E 44) B 45) B 46) C 47) B 48) D 49) E 50) A 51) B 52) E 53) E 54) B 55) C 56) C Version 1
137
57) A 58) B 59) C 60) D 61) C 62) E 63) C 64) D 65) A 66) E 67) E 68) C 69) D 70) B 71) A 72) D 73) E 74) C 75) E 76) D 77) B 78) A 79) D 80) B 81) D 82) E 83) A 84) B 85) D 86) C Version 1
138
87) C 88) C 89) A 90) A 91) D 92) D 93) E 94) C 95) B 96) A 97) B 98) B 99) D 100) C 101) D 102) B 103) C 104) E 105) B 106) E 107) C 108) A 109) C 110) A 111) D 112) B 113) A 114) D 115) B 116) C Version 1
139
117) D 118) E 119) C 120) D 121) A 122) E 123) B 124) D 125) C 126) B 127) C 128) D 129) E 130) A 131) E 132) B 133) E 134) D 135) C 136) A 137) D 138) B 139) E 140) E 141) C 142) E 143) D 144) E 145) C 146) C Version 1
140
147) B 148) A 149) C 150) C 151) D 152) C 153) E 154) D 155) C 156) D 157) A 158) D 159) C 160) E 161) D 162) A 163) E 164) A 165) B 166) E 167) A 168) C 169) D 170) B 171) A 172) B 173) A 174) D 175) C 176) D Version 1
141
177) B 178) D 179) A 180) A 181) E 182) D 183) A 184) E 185) D 186) C 187) B 188) A 189) B 190) A 191) D 192) E 193) C 194) D 195) E 196) C 197) E 198) A 199) E 200) C 201) A 202) E 203) A 204) C 205) E 206) A Version 1
142
207) D 208) D 209) E 210) A 211) C 212) B 213) A 214) E 215) B 216) E 217) C 218) C 219) C 220) E 221) B 222) D 223) B 224) D 225) A 226) A 227) E 228) C 229) E 230) D 231) E 232) A 233) D 234) B 235) C 236) E Version 1
143
237) D 238) A 239) D 240) E 241) E 242) D 243) B 244) A 245) E 246) B 247) C 248) E 249) A 250) D 251) C 252) A 253) C 254) A 255) A 256) B 257) D 258) B 259) A 260) B 261) E 262) D 263) C 264) B 265) D 266) A Version 1
144
267) B 268) C 269) B 270) E 271) E 272) E 273) A 274) C 275) D 276) C 277) C 278) E 279) A 280) B 281) C 282) D 283) E 284) D 285) B 286) C 287) D 288) B 289) D 290) A 291) B 292) B 293) A 294) D 295) D 296) E Version 1
145
297) E 298) C 299) A 300) B 301) D 302) B 303) B 304) C 305) A 306) A 307) D 308) C 309) E 310) D 311) E 312) A 313) E 314) D 315) A 316) B 317) D 318) D 319) B 320) B 321) E 322) B 323) E 324) C 325) E 326) D Version 1
146
Version 1
147
CHAPTER 3 1)
Facebook has approximately what fraction of the world's population as customers? A) one-half B) one-third C) one-quarter D) one-fifth E) one-seventh
2) All of these statements about the environmental forces that have influenced Facebook are trueexcept which? A) The federal government has a laissez-faire policy of not interfering with the development and marketing of Facebook and other social media websites. B) Technological advances include voice recognition software, GPS enabled apps, high resolution cameras, and cloud storage. C) There are a variety of other social networks such as Snap, WeChat, and Twitter, while Facebook also competes with Google and Amazon for digital advertising revenue. D) The global standard of living has been improving and the cost of mobile devices and Internet access declining. E) People increasingly expect delivery of information and real-time communication with simultaneous prevention of fake news and offensive content.
3)
Environmental scanning refers to
Version 1
1
A) assessing any possible negative impact a firm's activities might have on the local ecology. B) continually acquiring information on events occurring outside the organization to identify and interpret potential trends. C) setting up a regular schedule to assess the performance of different divisions within a firm. D) initiating an internal talent search to identify employees who can think "outside the box" to generate solutions to marketing problems caused by changes in the marketing environment. E) requiring all employees to spend time outside the office to avoid the "ivory tower" syndrome.
4) The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called A) significant trend analysis. B) organizational scanning. C) environmental scanning. D) a SWOT analysis. E) marketing intelligence.
5)
Environmental trends arise from all of these forcesexcept which? A) competitive B) economic C) regulatory D) persuasive E) social
6)
The purpose of environmental scanning is to
Version 1
2
A) uncover causes of trends in the marketplace. B) uncover opportunities in the marketplace. C) stop unhelpful trends in the marketplace, and speed helpful ones. D) stop unhelpful trends in the workplace, and speed helpful ones. E) identify and interpret trends in the marketplace.
7)
Which statement regarding environmental scanning is the most accurate?
A) Environmental scanning changes the marketing environment. B) Environmental scanning identifies and interprets potential trends. C) Environmental scanning should be done about every five years. D) Environmental scanning focuses primarily on ecological factors. E) It is too costly and there is too much information generated from environmental scanning to make it viable for small firms.
8) A firm conducting an environmental scan of the marketplace might uncover key________Blank such as the growing popularity of personal shoppers, the increasing emphasis on reuse rather than disposal of products and resources, or the importance of new e-commerce purchasing alternatives. A) profits B) responsibilities C) idealisms D) codes E) trends
9) Starbucks entered a partnership with Keurig Green Mountain to sell K-Cup singleserving coffee packs. Because Starbucks________Blank, it was prepared for this shift in its marketing environment.
Version 1
3
A) optimized its distribution by adding local outlets in grocery stores B) noticed the change in the demographics of coffee and tea drinkers in general C) added more in-store displays D) shifted funds from product development to advertising E) tracked the percentage of households with single cup brewers as part of its ongoing environmental scanning activities
10) As the director of marketing for a local hospital that specializes in caring for limited mobility patients and related health issues, you must conduct an environmental scan to help create a five-year marketing plan for the hospital. Which environmental trend should you consider to be the most important? A) The number of people in the geographic area who are 65 years or older will increase by 22 percent during the next five years. B) Millennials are becoming increasingly important in the workplace. C) The local community has seen a rise in dual-income households. D) By the year 2025, robotics will play a major role in surgical procedures. E) Twenty percent of the local population is of Hispanic origin, but that number is expected to grow during the next decade.
11) The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and accessories. The keys to its success include knowing customers' changing tastes and providing something different than other retailers. In addition, because of demanding clientele, The Lemon Tree's management is investing in the use of one-to-one marketing and artificial intelligence. The least important environmental force to The Lemon Tree at this time is likely to be A) economic. B) competitive. C) technological. D) social. E) regulatory.
Version 1
4
12) Local newspaper readership has declined significantly in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is most likely a response to which environmental force? A) economic, since few can afford a newspaper today B) competitive, resulting from new, smaller local newspapers that are flourishing C) technological, since high-speed printing presses have become easier to use D) social, resulting from changing consumer preferences for information delivered online E) regulatory, since the government provides tax incentives for paper-based products
13) The U.S. government has threatened to increase tariffs on European luxury automobiles because of a trade imbalance between the United States and the European Union. For American automakers like GM and Ford, this action would reflect a A) reactive strategy that would harm the technological environmental force. B) proactive maneuver to manipulate the social environmental force. C) positive result from regulatory environmental forces. D) positive response to a technological environmental force. E) negative impact as a result of adverse competitive, regulatory, and technological environmental forces.
14) Many large consulting firms are beginning to sponsor "women-only" networking events. The purpose of these events is to offer an opportunity for women in management to network with other businesswomen, either as clients, mentors, or protégés. This is an example of which environmental force?
Version 1
5
A) social B) economic C) technological D) competitive E) regulatory
15) The Kansas state legislature banned the use of tanning beds by anyone under the age of 18. This restriction is an example of which environmental force for the tanning industry? A) social B) economic C) technological D) competitive E) regulatory
16) In part because of the growing availability of 5G networks, customers are replacing their smartphones with new models or brands, even if their current phones still work, so they can take advantage of higher speeds for all their tasks. This increase in demand is due mostly to changes in________Blank, an environmental force. A) competition B) social culture C) technology D) regulations E) the economy
Version 1
6
17) The U.S. Supreme Court issued a landmark ruling in South Dakota v. Wayfair Inc. allowing states and local governments to force online retailers to collect sales taxes even if they do not have a physical presence in the state. This affected online sellers such as Virtual Vineyards, which previously collected state sales taxes only from customers who resided in California, its home state. This ruling would be an example of which environmental force? A) social B) economic C) technological D) competitive E) regulatory
18) The demographic characteristics of a population and its culture are types of environmental forces called A) social forces. B) economic forces. C) consumer forces. D) cultural forces. E) market forces.
19) The social forces in the environment include the________Blank of the population and its culture. A) living standards B) social classes C) cohorts D) ethics E) demographic characteristics
20)
Which statement regarding social forces is most accurate?
Version 1
7
A) Changes in social forces can have a dramatic impact on marketing strategy. B) As a social force, consumer incomes have more impact on marketing strategy than demographics. C) Social forces within an organization motivate employees to improve their productivity. D) Social forces determine all of the other environmental forces that affect an organization. E) Of all the environmental forces, social forces are the easiest for a marketer to manipulate.
21)
Which of the following would be identified as a social force in an environmental scan? A) a new consumer protection law B) a delay in young couples marrying and having children C) an introduction of advanced technology D) a decrease in consumer incomes E) a new international firm exporting to the United States
22) Generation X is now the largest segment of business travelers. In response, many airlines such as Delta are now offering more comfortable seats, 110-volt and USB outlets, and larger entertainment screens in response to Gen X preferences. This is an example of how________Blank forces impact the marketing environment. A) economic B) competitive C) social D) technological E) regulatory
Version 1
8
23) An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by the A) increased sales ofCigar Aficionado magazine. B) introduction of Snickers Maple Almond Butter candy bar. C) opening of more Starbucks coffee boutiques in supermarkets. D) upsizing of menu items at fast-food restaurants. E) introduction of fitness trackers such as the Fitbit.
24) Publishers were surprised by the dramatic success of the bookFifty Shades of Grey and believe that it would likely generate a fresh cycle of female-targeted romances packaged for the mainstream reader. This is an example of a(n)________Blank force impacting the marketing environment. A) economic B) competitive C) technological D) social E) regulatory
25)
Demographics refer to
A) the depiction of a population according to its core values or cultural beliefs and their rate of change. B) an objective measurement of a person's likelihood to purchase a product or service. C) the psychological profile of prospective consumers. D) the density of a population in a geographic area. E) the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.
Version 1
9
26) The description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as A) consumer group profiling. B) demographics. C) behavioral analysis. D) psychographics. E) statistical analysis.
27)
Demographic characteristics that describe a population include all of theseexcept which? A) income B) age C) occupation D) lifestyle E) ethnicity
28) Whereas the original print version ofMore magazine was targeted at older, well-heeled women, a newer digital-only version of the brand is aimed at a much younger audience:"More is a collection of voices—from today's most influential bloggers and social media stars to the brands readers love and live by. It's content by Millennials, for Millennials." Demand for such magazines is an example of how changing________Blank characteristics impact the marketing environment. A) cultural B) behavioral C) psychographic D) occupational E) demographic
29)
The most recent estimates indicate that the population of the world today is about
Version 1
10
A) 5.7 billion. B) 6.3 billion. C) 7.8 billion. D) 8.9 billion. E) 9.5 billion.
30)
By 2050, the world's population is expected to approach A) 2 billion. B) 3 billion. C) 5 billion. D) 6 billion. E) 10 billion.
31)
The recent change in the growth of the world's population has been called a A) population contraction. B) population inversion. C) population migration. D) population explosion. E) population eruption.
32)
The population explosion has occurred
Version 1
11
A) primarily in the developing countries of Asia and Africa. B) fairly evenly throughout the world. C) primarily in the United States due to high birthrates and immigration. D) primarily in the countries of the European Union due to high birthrates and immigration. E) primarily in developed countries due to better economic, infrastructure, and health care conditions.
33)
Projections show that the population is A) growing rapidly in North America. B) declining sharply in Australia. C) decreasing in most African nations. D) increasing in India. E) increasing in Eastern Europe.
34)
The country expected to have the largest population in 2050 is A) the United States. B) India. C) China. D) Russia. E) Brazil.
35) Which of these is a demographic trends that has significant implications to global marketers?
Version 1
12
A) the declining populations in Latin American countries B) the large and growing markets in India and China C) the tripling of the population of consumers under 40 years old D) the decreasing interest in entrepreneurship in developing countries E) the lack of savings of elderly populations in developed countries
36) Studies of the________Blank characteristics of the U.S. population suggest that it is becoming larger, older, and more diverse. A) cultural B) psychographic C) geographic D) demographic E) economic
37)
Generally, the U.S. population is becoming A) smaller, younger, and more diverse. B) smaller, older, and more diverse. C) larger, younger, and less diverse. D) larger, younger, and more diverse. E) larger, older, and more diverse.
38)
By 2030, the U.S. population is expected to exceed
Version 1
13
A) 173 million. B) 224 million. C) 293 million. D) 355 million. E) 414 million.
39) All of these factors contribute significantly to the rate of change of a country's populationexcept which? A) life expectancy (the average number of years a population lives from birth) B) immigration (the number of people who enter a country for the purpose of permanent residence) C) population density (the total number of people per square mile/kilometer) D) birth rate (the number of births during a specified time period) E) death rate (the number of deaths during a specified time period)
40)
The generation of children born between 1946 and 1964 is referred to as A) the gray generation. B) millennials. C) Generation Y. D) baby boomers. E) Generation X.
41)
Baby boomers can be defined as the generation born
Version 1
14
A) between 1918 and 1945. B) between 1946 and 1964. C) between 1965 and 1980. D) between 1981 and 1996. E) between 1997 and 2010.
42) Which of these currently affects baby boomers, and thus those that market to them, in a significant way? A) They are beginning to have children. B) They are getting their high school and college educations. C) They are currently retiring or nearing retirement age. D) They are just being born. E) They are beginning their primary school educations.
43) Prudential, a financial planning firm, offers retirement plans and wealth management advice. These products are most likely targeted toward which generational cohort? A) Generation Z B) baby busters C) Generation Y D) the greatest generation E) baby boomers
44) Olay, a personal care product firm, offers anti-aging and restoration products like its Total Effects cleansing cloths that are best targeted toward
Version 1
15
A) echo-boomers. B) Generation Z. C) Generation Y. D) baby boomers. E) baby busters.
45) In a recent issue ofAARP The Magazine, a print ad for State Farm Insurance annuities advises readers that "The company has helped you enjoy your time with the kids and it can now help you enjoy your time without them." The ad is most likely targeted toward which generational cohort? A) echo-boomers B) Millennials C) Generation Yers D) baby boomers E) baby busters
46)
Generation X is defined as the generation of children born A) between 1946 and 1964. B) between WWI and WWII. C) between 1965 and 1980. D) between 1981 and 1996. E) around the millennium.
47) The 55 million people born between 1965 and 1980, a period also known as the baby bust, are referred to as
Version 1
16
A) Generation X. B) millennials. C) Generation Y. D) Generation Z. E) baby boomers.
48) The generational cohort described as self-reliant, supportive of racial and ethnic diversity, better educated than previous generations, but having less net worth is A) Generation Z. B) Generation Y. C) millennials. D) Generation X. E) baby boomers.
49)
Generation X consumers are A) likely to rely on others. B) authoritative decision makers. C) very prone to extravagance. D) generally supportive of racial and ethnic diversity. E) poorly educated.
50)
Generation X
Version 1
17
A) is the least healthy generation since the 1940s. B) accounts for the smallest percentage of consumer spending among the cohorts. C) spends the most on online shopping. D) is notable for its interest in distinctive, memorable, and personal experiences. E) is a label often used synonymously with the term "millennials."
51) In terms of business travel, which generational cohort are airline ads that highlight comfortable seats, USB outlets, and larger entertainment screens most likely trying to reach? A) Generation X B) baby boomers C) Generation Z D) baby busters E) Generation Y
52)
Americans born between 1981 and 1996 are referred to as A) Generation X. B) baby boomers. C) Generation Y. D) baby busters. E) Generation Z.
53)
Generation Y is defined as the generation of children born
Version 1
18
A) between World War I and World War II. B) between 1946 and 1964. C) between 1965 and 1980. D) between 1981 and 1996. E) between 1997 and 2010.
54)
Generation Y is sometimes referred to as A) the echo-boom. B) baby boomers. C) baby busters. D) the revolution generation. E) Generation Aught.
55) with
Though definitions are inconsistent, members of Generation Y are frequently associated
A) the echo-bust. B) baby boomers. C) baby busters. D) the revolution generation. E) millennials.
56) Members of Generation Y are likely to have the greatest amount of influence on which of these product categories?
Version 1
19
A) luxury travel B) health care and insurance C) retirement plans D) sports E) automobile design
57) According to population estimates,________Blank have recently surpassed baby boomers as the largest living generation, with 75 million people. A) the gray market B) baby busters C) Generation X D) the baby boomerang E) millennials
58) ________Blank expect brands and companies to embrace social change, corporate social responsibility, and environmental stewardship, as well as profits. A) Members of Generation X B) Baby boomers C) Members of Generation Z D) Baby busters E) Millennials
59) Millennials are technologically savvy, innovative, ambitious, and determined to make the world a better place. A major way they hope to achieve their goal is through
Version 1
20
A) environmental stewardship. B) political activism. C) intergenerational dialogue. D) fiscal conservatism. E) educational reform.
60) Members of Generation Y, sometimes known as________Blank, are interested in sustainability, including sustainable campus communities. A) activists B) sustainers C) progressives D) reformers E) millennials
61)
For millennials, "positive business" means
A) engaging in free market economics with fair but limited regulations to manage exchange relationships. B) being part of a movement that balances the interests of shareholders, employees, and society. C) exploiting a nation's natural resources for the betterment of its society. D) seeking advanced jobs in agriculture that emphasize economies of scale in farming and ranching. E) executing an aggressive strategy regarding oil and natural gas exploration to make the United States energy independent.
62)
All of these statements are trueexcept which?
Version 1
21
A) LEED stands for Leadership in Energy and Environmental Design. B) Today's college graduates now seek green jobs that involve some aspect of social responsibility. C) Colleges of business have yet to establish sustainability course electives or environmental clubs. D) Many students want to be involved with organizations such as Net Impact to use business to improve the world. E) Millennials want to make a difference by making the world a better place.
63) The post-millennial generation that includes consumers born between 1997 and 2010 is known as A) echo busters. B) baby busters. C) the lost generation. D) the greatest generation. E) Generation Z.
64)
Members of Generation Z are most likely to influence which of these? A) furniture design B) health care and insurance C) retirement plans D) e-textbooks E) automobile design
65) ________Blank consumers say they will pay more for a product or brand if promotes environmental issues, social justice, and gender equality, and they, more than any other generation, say that they find out about products and services through social media.
Version 1
22
A) Generation X B) Baby Boomers C) Generation Z D) the Greatest Generation E) Generation Y
66)
Today, married households comprise________Blank of the U.S. population. A) 10 percent B) 20 percent C) 48 percent D) 64 percent E) 75 percent
67)
Which statement about the American household ismost accurate?
A) The structure of the American household has not changed significantly since 1960. B) With a drop in the divorce rate, almost 58 percent of households today are married couples with children. C) The number of households with working fathers and "stay-at-home" mothers has recently risen sharply and makes up almost 25 percent of all American households. D) One of the fastest-growing types of households are those with an adult child who has moved back home with his or her parents. E) The percentage of households with married couples has increased from 50 percent in 1960 to 75 percent today.
68) A family formed by merging two previously separated units into a single household is referred to as a
Version 1
23
A) cohort. B) blended family. C) merged household. D) reconstituted family. E) multigenerational household.
69)
A blended family is A) the result of the decline in divorce in recent years. B) a household with unmarried partners. C) a typical outcome of increased cohabitation. D) a family formed by merging two previously separated units into a single household. E) households formed with unrelated individuals.
70) Increased longevity and increased economic independence may be causes of which trend pertaining to American households? A) low levels of remarriage among divorcees B) fewer households with unmarried partners C) an increase in the number of children per household D) the growth of gray divorce E) a decrease in blended families
71) way.
A major regional shift in the U.S. population toward the________Blank states is under
Version 1
24
A) eastern B) west coast C) northern D) midwestern E) southern and western
72) Which state experienced a decline in population as reported in the most recent Census Bureau estimate? A) Utah B) Florida C) Nevada D) Idaho E) Illinois
73)
Today, 7 of the top 10 most populous cities in the United States are located A) along the east coast. B) near the Canadian border. C) along the west coast. D) in states that border Mexico. E) within the central Midwest.
74)
Remote suburbs are called
Version 1
25
A) exurbs. B) ruralia. C) outstate residential. D) subdivisions. E) minor statistical areas.
75)
Exurbs are A) statistical areas of at least 50,000 or more people. B) remote suburbs. C) statistical areas of at least 10,000 but less than 50,000 people. D) statistical areas that contains a population of 2.5 million or more. E) the combination of metropolitan statistical areas and micropolitan statistical areas.
76) One population trend shows young professionals and active retirees moving to________Blank communities that offer amenities such as equestrian centers, car clubs with race tracks, vineyards, and even "agrihoods" built around community-based farms. A) exurban B) rural C) in-home residential D) suburban E) urban
77) A statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration is referred to as a
Version 1
26
A) micropolitan statistical area. B) metropolitan statistical area. C) downtown statistical area. D) zip code. E) combined statistical area.
78)
A metropolitan statistical area refers to
A) a statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration. B) a statistical area of 2.5 million people or more. C) a cluster of exurbs that function as a single unit due to the proximity of their geographic locations to an urbanized area. D) a highly urbanized area with a centrally located population of at least 1,000,000 people. E) a statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration.
79) A statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration is referred to as a A) micropolitan statistical area. B) metropolitan statistical area. C) consolidated metropolitan statistical area. D) megapolitan statistical area. E) metropolitan division.
80)
A micropolitan statistical area refers to
Version 1
27
A) a statistical area of 2.5 million people or more. B) a highly urbanized area with a centrally located population of at least 1,000,000 people. C) a cluster of exurbs that function as a single unit due to the proximity of their geographic locations to an urbanized area. D) a statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration. E) a statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration.
81) Approximately one in________Blank U.S. residents is African American, Native American or Alaska Native, Asian American, or Native Hawaiian or Pacific Islander. A) ten B) seven C) five D) three E) two
82)
Which of these racial or ethnic groups has the highest spending in the United States? A) Asian Americans B) Hispanics C) African Americans D) Native American and other native populations E) Indian immigrants (from India)
83) Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as________Blank marketing programs.
Version 1
28
A) panethnic B) generational C) cross-cultural D) multicultural E) regional
84) Multicultural marketing refers to combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different A) races or ethnic groups. B) nations. C) religions. D) generational cohorts. E) genders.
85) Recognized for excellence byAdvertising Age, The Community is a global agency of people with diverse backgrounds with a mission "to create culturally-potent ideas for a multieverything world." The Community has created Hispanic-American campaigns Domino's Pizza, Ferrero Rocher, Verizon, Coca-Cola, and Google as a part of their programs incorporating A) psychographic differences. B) population inputs. C) multicultural marketing. D) a value consciousness. E) macroeconomics.
86) The set of values, ideas, and attitudes that are learned and shared among the members of a group is referred to as
Version 1
29
A) customs. B) morals. C) norms. D) culture. E) ethics.
87)
Culture refers to the A) moral and ethical beliefs of a family passed down from generation to generation. B) set of values, ideas, and attitudes that are learned and shared among the members of a
group. C) pastimes associated with the fine arts, such as ballet, music, and theater. D) standard or pattern of behaviors that is typical or expected of a group. E) description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.
88) Culture is a component of what type of environmental force that must be scanned to assess its impact on the organization's marketing environment? A) regulatory B) technological C) competitive D) economic E) social
89) According to some predictions regarding attitudes and the roles of men and women, which of these is most likely to occur?
Version 1
30
A) The attitudes of men toward women will change more dramatically than the attitudes of women toward men. B) The attitudes of women toward men will change more dramatically than the attitudes of men toward women. C) The buying habits of women will become much more predictable than those of men. D) The gap between buying patterns of men and women will grow. E) The gap between buying patterns of men and women will diminish.
90) In the past several decades, attitudes of both men and women have changed. Increased participation in________Blank has eliminated one of the most visible inequalities in opportunities for women. A) organized sports B) graduate business (MBA) programs C) fashion design programs D) financial/investment banking jobs E) medical professions
91) Over the past 30 years in the United States, the attitudes of men and women have changed. One factor has been the A) way women were portrayed in the movies and on television. B) Internet, which made gender, race, and ethnicity invisible in the marketplace. C) decreased participation of women in the workforce that has made employers less open-minded. D) failure of political activists to advocate the power of women. E) economic shift that resulted in the courting of women to increase the overall gross domestic product of the United States.
Version 1
31
92) Changing attitudes toward sex roles are sometimes expressed today as________Blank in both product design and promotion. A) traditional stereotypes B) gender neutrality C) data-driven specifications D) post-modern norms E) overt sexual themes
93)
Which of these is a commonly held value in the United States today? A) sustainability B) tradition C) group welfare D) nostalgia E) acceptance of birthright
94)
All of these are commonly held values in the United Statesexcept which? A) equality B) action C) competition D) group welfare E) continuous change
95)
Which of these is a commonly held value in the United States?
Version 1
32
A) the importance of rank and status B) the importance of tradition C) belief in fate D) individualism E) acceptance of birthright
96)
An increasingly important value for U.S. consumers is A) humility. B) wealth. C) patriotism. D) relaxation. E) value consciousness.
97) Bombas has donated more than 10 million pairs of socks to homeless shelters in its efforts to help "an under-publicized problem in the United States." This is an example of which increasingly common cultural value? A) social action B) competition C) reducing costs D) believing in fate E) reducing cognitive dissonance
98) Many consumers are committed to brands with a strong link to social action. An example of this would be
Version 1
33
A) McDonald's "I'm Lovin' It" campaign. B) Airbnb’s “We Accept” campaign. C) Diesel's "Be Stupid" campaign. D) Liz Claiborne's "Claiborne for Men" campaign. E) Samsung's "The Jitterbug" campaign.
99) Walmart purchased online retailer Jet.com for $3.3 billion to complement its existing ecommerce offering and offer lower prices and a broader assortment of products to customers who shop for bargains online in response to customers' A) changing values. B) changing population composition. C) changing demographics. D) changing regulatory forces. E) changing ethnic composition.
100)
Value consciousness is defined as
A) special deals to customers who shop for bargains online. B) the concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior. C) a change in consumption orientation to strongly prefer inexpensive products. D) strict budgeting of discretionary purchases. E) money management for long-term stability.
101)
The economy is defined as
Version 1
34
A) the independent financial factors that are not affected by changes in government spending. B) the purchase of the highest quality product for the lowest possible price. C) the production, distribution, and consumption of products, services, and ideas by households. D) the income, expenditures, and resources that affect the cost of running a business and household. E) the forces within a manufacturer's control that affect the demand and supply of its offerings.
102) A sudden drop in the average consumer income would be an example of which environmental force? A) economic B) competitive C) technological D) social E) regulatory
103) Oil prices have an impact on transportation costs for many types of products. Should oil prices change, the price consumers pay for products is often adjusted accordingly. Changing oil prices would be an example of a(n)__________Blank force. A) regulatory B) competitive C) technological D) social E) economic
Version 1
35
104) Volkswagen opened a large plant in Chattanooga, TN, in 2011. Within a few years, VW spurred more than 12,400 direct and indirect jobs in the area. The carmaker generates income of over $600 million there annually and boosts state and local tax revenues by over $50 million a year. A huge expansion was announced in 2016 that would nearly double its operations in Tennessee. This example best illustrates__________Blank change that has impacted the people and businesses of Chattanooga. A) a regulatory B) a competitive C) an economic D) a social E) a technological
105)
All of these are economic indicatorsexcept which? A) inflation B) barriers to entry C) unemployment D) gross domestic product E) deflation
106) In a(n)________Blank economy, the cost to produce and buy products and services escalates as prices increase. A) inflationary B) expansionary C) deflationary D) recessionary E) depressive
Version 1
36
107) In a(n)________Blank economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases. A) deflationary B) expansionary C) recessionary D) inflationary E) depressive
108) In an inflationary economy, the cost to produce and buy products and services________Blank as prices________Blank. A) increases; increase B) increases; decrease C) decreases; increase D) decreases; decrease E) does not change; increase
109) The College Board reports that since 2000, college tuition and fees have increased by 190 percent while the share of family income required to pay for tuition at public four-year colleges has risen from 8 percent in 2000 to 16 percent today. This is an example of a(n)________Blank condition. A) deflationary B) recessionary C) repressive D) inflationary E) depressive
110) A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as Version 1
37
A) deflation. B) inflation. C) prosperity. D) a recession. E) an economic cycle.
111)
The most recent economic recession occurred when? A) 1981–1982 B) 1989–1990 C) 1998–1999 D) 2007–2009 E) 2010–2013
112) A steady decline in consumer confidence would be an example of which environmental force? A) economic B) competitive C) technological D) social E) regulatory
113)
A consumer's income consists of
Version 1
38
A) inflationary, recessionary, and depressive economies. B) salaries, taxes, and assets. C) gross, disposable, and discretionary components. D) sales taxes, income taxes, and property taxes. E) assets, liabilities, and equities.
114) The total amount of money made in one year by a person, household, or family unit is referred to as________Blank income. A) government B) discretionary C) disposable D) gross E) livable
115)
Gross income refers to the
A) money that remains after paying for taxes and necessities. B) money deducted from a person's paycheck to pay for federal, state, and local taxes. C) money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation. D) total amount of money made by a single individual during his or her lifetime. E) total amount of money made in one year by a person, household, or family unit.
116)
At the U.S. Census Bureau, gross income is referred to as
Version 1
39
A) buying power. B) cash inflow. C) fiscal power. D) money income. E) household income.
117) In 1970, the typical U.S. household earned about $8,700. In 2017, it was about $61,300. If adjusted for inflation, the gross income of the typical U.S. household in 2017 relative to 1970 has A) increased dramatically. B) fluctuated intensely. C) remained relatively stable. D) decreased somewhat. E) decreased dramatically.
118) Approximately what percentage of U.S. households has an annual income between $25,000 and $99,999? A) 13 B) 28 C) 37 D) 42 E) 50
119) The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as
Version 1
40
A) net income. B) disposable income. C) discretionary income. D) household income. E) gross income.
120)
Disposable income refers to
A) the money that remains before paying for taxes and necessities. B) the money deducted from a person's paycheck to pay for federal, state, and local taxes. C) the total amount of money made by a single individual during his or her lifetime. D) the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation. E) the money that is spent for necessities or charitable causes that is exempt from taxation.
121)
If taxes rise at a faster rate than incomes, consumers will A) have less disposable income and try to economize. B) feel more confident in the government and therefore spend more money. C) use cash for purchases such as a vacation. D) recognize that it is the perfect opportunity to buy a car or other expensive products on
credit. E) react by voting for all incumbent members of Congress.
122) A decline in________Blank affects discretionary income and often leads consumers to adjust their spending upwards in other categories.
Version 1
41
A) entertainment prices B) gasoline prices C) interest rates D) consumer confidence E) property values
123) Changes in ________ have a psychological impact on consumers, who tend to spend more when they feel their net worth is rising and postpone purchases when it declines. A) automobile prices B) fuel prices C) the number of people competing for jobs D) consumer confidence E) home values
124)
During a recessionary period, which economic behavior would be expected? A) Consumer spending would increase. B) The use of credit would decline. C) Taxes would increase nationally. D) Property values would jump dramatically. E) Consumers would use the majority of their discretionary income on groceries.
125) Leah had an excellent year as a salesperson in 2021, earning $98,000. She paid $38,000 for necessities such as mortgage, food, and clothing. Her state and federal income taxes totaled $24,000. What was her disposable income?
Version 1
42
A) $36,000 B) $74,000 C) $60,000 D) $98,000 E) There is not enough data provided to calculate her disposable income.
126) to as
The portion of one's income that remains after paying for taxes and necessities is referred
A) net income. B) discretionary income. C) disposable income. D) household income. E) gross income.
127)
Discretionary income refers to the
A) money deducted from a person's paycheck to pay for federal, state, and local taxes. B) total amount of money made by a single individual during his or her lifetime. C) money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation. D) money that is spent for necessities or charitable causes that is exempt from taxation. E) money that remains after paying for taxes and necessities.
128) Income used to buy luxury items such as a voyage aboard the Queen Mary 2 offered by Cunard referred to as
Version 1
43
A) gross income. B) disposable income. C) surplus income. D) wealth income. E) discretionary income.
129)
The Department of Labor monitors consumer spending through its annual A) Consumer Price Index. B) Consumer Confidence Index. C) Consumer Expenditure Survey. D) Index of Consumer Sentiment. E) National Consumer Spending Assessment.
130) The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey. In the most recent report, consumers spent the largest proportion of their income on which of these? A) education B) housing C) vacations D) entertainment E) investments
131)
Consumer spending on which of these would be considered discretionary?
Version 1
44
A) healthcare B) housing C) furniture D) clothing E) transportation
132)
Increases in discretionary income can occur as a result of all of theseexcept which? A) an increase in gross income B) a decrease in taxes C) an increase in disposable income D) a decrease in housing costs E) an increase in government regulation
133) Even if she pays high taxes and has high expenses for necessities, if a consumer's________Blank is still high after those, she may be able to take advantage of the luxurious vacation travel opportunities like staying at the Ritz-Carlton in New York City's Central Park. A) savings rate B) gross income C) taxes D) discretionary income E) disposable income
134) Miela had an excellent year as a junior auditor in 2021, earning $97,000. She paid $37,000 for necessities such as mortgage, food, and clothing. Her state and federal income taxes totaled $24,000. What was her discretionary income?
Version 1
45
A) $36,000 B) $60,000 C) $73,000 D) $97,000 E) Not enough information is provided to calculate her discretionary income.
135) A local pet supplies boutique had a good year with rising revenues and reduced operating costs resulting in personal income for the owner of nearly $100,000. One-third of that went to local, state, and federal income taxes and another third went to pay for a home mortgage, car payments, food, clothing, and other necessities. What is the remaining third called? A) gross income B) bonus income C) discretionary income D) disposable income E) profit
136) Jacob and Rob prepared a household budget in an attempt to manage their money better. They prepared the following list: Monthly income (after taxes) = $4,500; Monthly expenses (necessities), which include rent, $550; auto loan, $250; student loan, $200; savings, $500; food, $200 = $1,700; Amount left over = $2,800 (income less necessary expenses). The remaining $2,800 is their A) gross income. B) personal income. C) disposable income. D) discretionary income. E) profit.
Version 1
46
137) Over the past decade the number of people who attended music concerts, plays, and other live entertainment increased because they had the________Blank to enjoy these activities. A) gross income B) bonus income C) profit D) disposable income E) discretionary income
138) This year the Shafer family has dined at nice restaurants almost four times a week. Between raises received by Mr. and Mrs. Shafer, their family income rose 11 percent, while the cost of living rose by 4 percent and property taxes went up 5 percent in their community. As a result, the family eats outside the home more often now, compared to dining out only a few times a month a few years ago. This reflects A) an increase in the number of fine restaurants during times of economic upswing. B) a reaction to an increase in discretionary income. C) a significant drop in disposable income since there was a negative gain in income. D) a rise in deflation. E) a shift from investing to spending
139) has
Recent data on consumer expenditures indicate that the savings rate of U.S. consumers
A) declined to 13 percent. B) remained flat at 0.5 percent. C) fluctuated minimally around 2 percent. D) risen to 7.5 percent. E) exploded to nearly 10 percent.
140)
Inventions or innovations from applied science or engineering research are referred to as
Version 1
47
A) scientific discoveries. B) theoretical development. C) technology. D) patents. E) dynamic engineering.
141)
Technology is defined as
A) any device or process based on scientific discoveries that are less than one year old. B) any mechanical device used in the production or distribution of a product. C) scientific findings that are used now or are able to generate a profit. D) ideas or concepts that will one day be translated into usable devices, mechanisms, or processes. E) the inventions or innovations from applied science or engineering research.
142) Technological advances can replace or substitute for existing products in a relatively short period. Nest’s doorbell is a likely replacement or substitute for A) digital assistants. B) digital video recorders. C) security cameras. D) exterior lighting. E) plastic credit cards.
143) According to the text, several new technologies are expected to have dramatic impacts on marketing. Among those cited are
Version 1
48
A) biotechnology, smart grid services, natural user interfaces, and social networks. B) neuron technology, lithium batteries, cloud computing, and wireless power. C) crowdsourcing, genomics, QR codes, and weather manipulation. D) blockchain, facial authentication, wearable technology, and artificial intelligence. E) nanotechnology, autobots, cloud computing, and electric cars.
144) LG recently introduced a “connected” refrigerator that can track food expiration dates and respond to voice commands. This is an example of a__________Blank change in the marketing environment. A) ecological B) regulatory C) legal D) competitive E) technological
145) Oral-B toothbrushes now connect to your smartphone to provide real-time feedback on your brushing. This is an example of how________Blank forces help improve or replace existing products and companies. A) ecological B) regulatory C) legal D) competitive E) technological
146) Medication sensors have been developed that can dispense medicines by circulating within the arteries of the body and sensing when the medication is needed. This is an example of how________Blank forces help improve or replace existing products and companies.
Version 1
49
A) ecological B) regulatory C) technological D) competitive E) marketing mix
147) Recently, ink has been developed that will conduct electricity. The application for this ink is to print circuitry that can be read electronically. This may help to drive down the cost of radio frequency (RFID) tags that are currently used in industry. This is an example of how________Blank forces are applied to industry. A) ecological B) regulatory C) technological D) competitive E) marketing mix
148) One reason some people don't like to buy clothing from Internet retailers is the inability to know if the clothes will fit. ImageTwin uses a scanning system and stores an individual’s measurements. When you shop at LandsEnd.com, you can see a 3-D image of what the item should look like on your body. This is an example of the________Blank force in the marketing environment. A) economic B) technological C) sociocultural D) competitive E) marketing mix
Version 1
50
149) Cloud computing, such as Apple's iCloud, enables businesses and consumers to share data or use software applications directly from a remote server over the Internet or wirelessly rather than having that data file or program reside on a personal computer. This is an example of a________Blank change in the marketing environment. A) regulatory B) sociocultural C) competitive D) technological E) marketing mix
150) Growth of green technologies such as smart grid electricity services, online energy management, and consumer-generated energy are________Blank forces that would be identified through an environmental scan. A) social B) competitive C) regulatory D) technological E) economic
151) The Electronic Signatures in Global and National Commerce Act makes digital signatures as valid as pen-and-ink signatures. This act created a demand for software and hardware that would collect, transmit, and receive digital signatures. This example indicates how________Blank forces can work together in the marketing environment. A) technological and regulatory B) technological and competitive C) social and competitive D) social and economic E) regulatory and economic
Version 1
51
152)
Marketspace refers to
A) the two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. B) websites that allow people to congregate online and exchange views on topics of common interest. C) Internet search engines used for the purpose of data mining. D) an information- and communication-based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offerings. E) the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
153) An information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digital offerings is referred to as A) Internet marketing. B) marketspace. C) electronic commerce. D) marketplace. E) e-exchange.
154) Any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services is referred to as
Version 1
52
A) electronic commerce. B) internet barter. C) intranet exchange. D) electronic exchange. E) extranet trade.
155)
Electronic commerce refers to
A) an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digitized offerings. B) any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services. C) two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. D) electronic storefronts that focus on converting an online browser into an online, catalog, or in-store buyer. E) electronic storefronts that advertise and promote a company's products and services and provide information on how items can be used and where they can be purchased.
156) Buying a book at www.amazon.com to give as a birthday present is an example of a(n)________Blank transaction. A) i-market B) intranet C) electronic commerce D) extranet E) marketplace
Version 1
53
157) Internet-based technology facilitates an intranet for business communication within an organization and________Blank to communicate with suppliers, distributors, and other partners such as advertising agencies. A) an i-market B) an e-mart C) electronic commerce D) an extranet E) a marketplace
158)
The Internet of Things (IoT) refers to A) technological breakthroughs that allow major innovation to occur. B) the network of products with connectivity-enabled electronics. C) an explosion in interest in advanced analytics. D) technological specifications that identify access to networks. E) the belief in technology as a driver of success in the marketplace.
159) The network of products embedded with connectivity-enabled electronics has come to be known as A) marketspace. B) the extranet. C) the Internet of Things. D) the cloud. E) universal connection.
160) Alternative firms that could provide a product to satisfy a specific market's needs are referred to as
Version 1
54
A) substitute firms. B) target markets. C) complementary firms. D) cross product marketers. E) competition.
161)
Competition refers to
A) identical products that perform identical functions. B) any for-profit organization that targets the customers of other organizations. C) alternative firms that could provide a product to satisfy a specific market's needs. D) any product or service that vies for a portion of a customer's discretionary income. E) the set of firms that operate in a given geographic region, regardless of product or service.
162)
In business, the four basic forms of competition are
A) pure competition, limited competition, oligopoly, and monopoly. B) dictatorship, monarchy, oligarchy, and democracy. C) pure competition, cross-market competition, oligopoly, and pure monopoly. D) technological competition, market competition, governmental competition, and environmental competition. E) pure competition, monopolistic competition, oligopoly, and pure monopoly.
163) Many firms now use e-mail and the Internet to promote their products instead of sending promotional literature to current and prospective customers through the mail. UPS and FedEx continue to grow, offering both overnight and ground package delivery services. As a result, the U.S. Postal Service (USPS) has lost millions of customers and billions in revenue. The USPS has challenges ahead in coping with________Blank forces in the marketplace.
Version 1
55
A) economic B) competitive C) legal D) social E) ecological
164) The form of competition in which there are many sellers and they each have a similar product is referred to as A) pure competition. B) singular competition. C) an oligopoly. D) monopolistic competition. E) a monopoly.
165) Agribusinesses that sell commodity products such as wheat, rice, and corn are often in a(n)________Blank position with their competitors. A) limited competition B) pure competition C) oligopolistic competition D) monopolistic competition E) monopolistic
166) ________Blank is the form of competition where distribution is the only element of the marketing mix that exerts much of an impact on the firm.
Version 1
56
A) Cross-market competition B) Limited competition C) Pure competition D) Monopolistic competition E) A monopoly
167) The form of competition in which many sellers compete with substitutable products within a price range is called A) pure competition. B) cross-market competition. C) an oligopoly. D) monopolistic competition. E) a monopoly.
168)
The use of coupons is a frequently used marketing tactic for which form of competition? A) pure competition B) cross-market competition C) an oligopoly D) a monopoly E) monopolistic competition
169) Leticia is a salesperson at the only Ford automobile dealership in Wausau, Wisconsin. However, there are several other auto dealerships in town, offering both domestic and foreign cars and trucks. Leticia works hard to keep her customers satisfied because she knows that if her customers are unhappy, they can simply buy a car from one of the several other comparable dealers in Wausau. This marketing environment is an example of
Version 1
57
A) pure competition. B) monopolistic competition. C) an oligopoly. D) a monopoly. E) marginal competition.
170) During the holiday shopping season, many online retailers offer buyers price reductions, two-for-one deals, or free delivery. This is because these retailers operate in a(n)________Blank environment. A) pure competition B) oligopoly C) monopolistic competition D) monopoly E) marginal competition
171) The form of competition where just a few companies control the majority of industry sales is referred to as A) pure competition. B) cross-market competition. C) an oligopoly. D) monopolistic competition. E) a monopoly.
172) AT&T, Verizon, and T-Mobile serve more than 95 percent of the subscribers in the U.S. wireless mobile phone market. Which form of competition characterizes this market?
Version 1
58
A) pure competition B) limited competition C) a monopoly D) an oligopoly E) monopolistic competition
173) Because there are few sellers, price competition among firms is avoided in which form of competition? A) pure competition B) cross-market competition C) a monopoly D) monopolistic competition E) an oligopoly
174) The entertainment industry in the United States is dominated by Comcast, Viacom, Disney, and Charter Communications. In terms of the form of competition, this industry is an example of A) a monopoly. B) a merger. C) pure competition. D) an oligopoly. E) monopolistic competition.
175) Only two companies, Intel and AMD, design the computer processors for the majority of laptops and desktops sold in the U.S. today. Intel and AMD operate in which type of competitive environment?
Version 1
59
A) a pure monopoly B) an oligopoly C) pure competition D) monopolistic competition E) a diopoly
176) The U.S. Securities and Exchange Commission has designated just nine credit-rating agencies as nationally recognized statistical rating organizations, which include Moody's, Standard & Poor's, and Fitch Ratings. These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them. Because so few companies can compete in it, the credit-rating industry would be considered A) a dynamic monopoly. B) an oligopoly. C) pure competition. D) monopolistic competition. E) a pure monopoly.
177) Boeing, Northrup Grumman, and Lockheed Martin control the vast majority of the U.S. defense contractor industry. In terms of the form of competition, this industry is an example of A) an oligopoly. B) a conglomerate. C) a pure monopoly. D) pure competition. E) monopolistic competition.
178) In marketing, the form of competition that occurs when only one firm sells the product is referred to as
Version 1
60
A) pure competition. B) a megopoly. C) an oligopoly. D) monopolistic competition. E) a pure monopoly.
179) Since________Blank is typically regulated by the state or federal government, marketing plays a relatively small role in this setting. A) pure competition B) a pure monopoly C) an oligopoly D) monopolistic competition E) a megopoly
180) In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that organization to ensure price protection for the buyer. This is an example of A) pure competition. B) a pure monopoly. C) an oligopoly. D) monopolistic competition. E) a megopoly.
181) The Federal Trade Commission investigated Google as potentially being a(n)________Blank, but found that despite its very large market share, it had not harmed competition.
Version 1
61
A) pure competitor B) oligopoly C) pure monopoly D) monopolistic competitor E) megopoly
182)
The factors that drive competition include
A) monopolistic competition, cross-market competition, entry, and the bargaining power of buyers and suppliers. B) cross-market competition, entry, the bargaining power of buyers and suppliers, and substitution possibilities. C) monopolistic competition, cross-market competition, bargaining power of buyers and suppliers, existing rivalries. D) entry, the bargaining power of buyers and suppliers, existing rivalries, and substitution possibilities. E) cross-market competition, entry, bargaining power of buyers and suppliers, substitution possibilities.
183) Business practices or conditions that make it difficult for new firms to enter the market are referred to as A) market obstructions. B) barriers to entry. C) switching costs. D) import-export firewalls. E) preemptive practices.
184)
Barriers to entry refer to
Version 1
62
A) governmental prohibitions regarding the establishment of businesses that are considered immoral. B) governmental prohibitions regarding the establishment of businesses that are considered legal but unethical. C) strong-armed tactics that are illegal but commonly used in certain industries to hinder competition. D) business practices that make it difficult for new firms to enter the market. E) restrictions against certain consumers' purchase of a product.
185) Which of these would be considered a barrier to entry, one of the factors that impacts competition? A) personnel shortages B) distribution access C) field of experience D) inventory deficits E) prior enterprise failures
186)
In terms of competitive forces, powerful buyers exist when A) there are many buyers. B) the product represents a small share of the buyer's total costs. C) switching costs are low. D) the product is critical to the buyer. E) preemptive practices exist.
187)
Competitive pressures among existing firms depend on
Version 1
63
A) the current economic growth rate. B) the total number of established competitors. C) low fixed costs. D) the rate of industry growth. E) the availability of raw materials and natural resources.
188) Small businesses make up the majority of the competitive landscape for most businesses. There are approximately________Blank small businesses in the United States. A) 17 million B) 30 million C) 46 million D) 62 million E) 97 million
189)
Small businesses employ about________Blank of all private-sector employees. A) one-quarter B) one-third C) one-half D) three-quarters E) ninety percent
190)
Small businesses account for________Blank of the gross domestic product (GDP).
Version 1
64
A) 21 percent B) 32 percent C) 46 percent D) 68 percent E) 82 percent
191) The restrictions that state and federal laws place on business with regard to the conduct of its activities are referred to as A) jurisprudence. B) competitive constraints. C) barriers to entry. D) restraints of trade. E) regulation.
192)
Regulation refers to
A) the restrictions that state and federal laws place on business with regard to the conduct of its activities. B) constraints placed on businesses for activities that are legal but unethical. C) society's values and standards that are enforceable in the courts. D) requirements concerning which customers a firm may serve or not serve. E) the moral principles and values that govern the actions and decisions of an individual or group.
Version 1
65
193) An Arizona cardiac surgery practice agreed to pay the U.S. Department of Health and Human Services a $100,000 settlement following an investigation of potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. The practice posted clinical and surgical appointments for its patients on an Internet-based calendar that was publicly accessible, which drew complaints for failing to protect health information of consumers. HIPAA rules are an example of________Blank forces in the marketing environment. A) economic B) ecological C) technological D) social E) regulatory
194) Visa and MasterCard have recently been accused of violating antitrust laws by improperly fixing credit and debit card fees (known as swipe fees) paid by retailers to use their services, creating an anti-competitive environment. Legislation that prohibits price-fixing is an example of________Blank forces that affect the marketing environment. A) economic B) ecological C) technological D) regulatory E) social
195) F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of commonly used vitamins in the United States. This is an example of how________Blank forces affect the marketing environment.
Version 1
66
A) economic B) ecological C) technological D) social E) regulatory
196) The first major federal legislation passed to forbid contracts, combinations, or conspiracies in restraint of trade in the United States was the A) Lanham Act. B) Sherman Antitrust Act. C) Federal Trade Commission Act. D) Robinson-Patman Act. E) Clayton Act.
197) The first major federal legislation passed to forbid actual monopolies or attempts to monopolize any part of trade or commerce in the United States was the A) Lanham Act. B) Federal Trade Commission Act. C) Robinson-Patman Act. D) Sherman Antitrust Act. E) Clayton Act.
198)
Protecting competition is the primary aim of which law?
Version 1
67
A) Lanham Act B) Federal Trade Commission Act C) Fair Trade Act D) Unfair Practices Act E) Sherman Antitrust Act
199)
Which of these is the purpose of the Clayton Act?
A) provide incentives for interstate commerce B) forbid actions that are likely to lessen competition, although no actual harm has yet occurred C) exact compensation from firms found guilty of violating fair trade practices D) repeal provisions of the Sherman Antitrust Act that stifled innovation E) strengthen the Robinson-Patman Act
200) The purpose of the________Blank is to forbid certain actions that are likely to lessen competition, although no actual harm has yet occurred. A) Federal Trade Commission Act B) Lanham Act C) Clayton Act D) Sherman Antitrust Act E) Robinson-Patman Act
201)
Protecting competition is the primary aim of which law?
Version 1
68
A) Prevention and Enforcement Act B) Clayton Act C) Federal Trade Commission Act D) Fair Trade Act E) Unfair Practices Act
202)
What is the purpose of the Robinson-Patman Act? A) outlaw price discrimination for purchasers of the same product B) establish regulated monopolies for utilities C) protect inventors from having their intellectual property stolen D) repeal the Sherman Antitrust Act E) provide incentives for interstate commerce
203) The federal government enacted the________Blank to make it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly. A) Fair Trade Act B) Clayton Act C) Lanham Act D) Robinson-Patman Act E) Unfair Practices Act
204)
The purpose of patent law is to
Version 1
69
A) provide incentives for increased competition and lower prices by limiting the granting of patents. B) give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work. C) give inventors of new and novel products the right to exclude others from making, using, or selling products that infringe the patented invention. D) guarantee the quality and safety of any product produced or distributed in the United States. E) level the playing field between inventors who work for large corporations and those who work on their own.
205) A company can protect its competitive position under________Blank, which gives inventors of new and novel products the right to exclude others from making, using, or selling products that infringe on the invention. A) copyright law B) patent law C) trademark law D) commercial law E) antitrust law
206)
The purpose of copyright law is to
A) provide incentives for increased competition. B) give inventors of new and novel products the right to exclude others from making, using, or selling products that infringe the patented invention. C) level the playing field between inventors who work for large corporations and those who work on their own. D) guarantee the quality and safety of any product produced or distributed in the United States. E) give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.
Version 1
70
207) The purpose of________Blank is to give the author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work. A) copyright law B) patent law C) trademark law D) commercial law E) antitrust law
208)
The Digital Millennium Copyright Act, signed in 1998,
A) limits access of children to online material considered to be inappropriate or harmful. B) improves protection of copyrighted digital products. C) allows the government to collect taxes if printed materials are sold online. D) prevents the pirating of digital products that do not have a registered trademark. E) allows anyone with access to a computer to publish original materials online and seek remuneration (pay).
209) The Child Protection Act (1966) and the Nutritional Labeling and Education Act (1990) are examples of A) pricing-related legislation. B) laws specifying product requirements. C) fair trade legislation. D) distribution-related legislation. E) government contracts with private firms.
210)
All of these federal laws are designed to protect consumersexcept which?
Version 1
71
A) Consumer Product Safety Act B) FTC Act of 1914 C) Nutritional Labeling and Education Act D) Digital Millennium Copyright Act E) Child Protection Act
211) The grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions is referred to as A) Naderism. B) consumerism. C) green marketing. D) anti-corporate activism. E) libertarianism.
212)
Consumerism refers to
A) a movement of conspicuous consumption that began when World War II ended. B) conducting business in a way that protects the natural environment while making economic progress. C) a collaborative effort between buyers and sellers to create an exchange where each benefit. D) the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. E) the grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.
213) Which law came about as a response to the 1960s grassroots movement known as consumerism?
Version 1
72
A) Robinson-Patman Act B) Clayton Act C) Digital Millennium Copyright Act D) FTC Act E) Consumer Product Safety Act
214) Each year, the U.S. Army shoots an estimated 200 million rounds of lead bullets at target practice areas across the United States. Pentagon officials, in response to environmentalists' concerns over lead poisoning in the soil, have invested over $12 million to develop an environmentally safe tungsten bullet. This is an example of one of the outcomes of A) marketing ethics. B) consumerism. C) cause marketing. D) self-regulation. E) Naderism.
215)
The Lanham Act has two functions:
A) protect the investment of energy, time, and money that the owner of a trademark has invested in the development of the product and guarantee the owner of the trademark complete rights to his work for the duration of the owner's lifetime. B) protect the inventor's individual rights and provide the company with the maximum profits possible. C) protect the rights of the inventor both here and abroad. D) protect the public so they will get the product it wants and asks for and protect the government so it will be able to collect its fair share of taxes from the revenues generated. E) protect the firm selling the trademarked product from infringers and protect the consumer buying the product by allowing correct identification of desired products.
Version 1
73
216)
The Lanham Act A) prevents someone from using a trademark on a noncompeting product. B) protects the consumer from product defects. C) provides for registration of a company's trademarks. D) allows a company to secure rights to a name before its actual use. E) facilitates the protection of U.S. trademark rights throughout the world.
217) The________Blank provides for registration of a company's trademark, such as the Nike swoosh. A) Lanham Act B) Patent Act C) Clayton Act D) Sherman Antitrust Act E) Miller-Tydings Act
218)
The Lanham Act does not protect the rights to a trademark if A) the company is accused of violating the Sherman Antitrust Act. B) the product patent is less than 17 years old. C) the word, name, or symbol has become generic. D) the statute of limitations has run out. E) the government refuses to enforce violations.
219) The popular cupcake chain Sprinkles settled a trademark infringement lawsuit against a Connecticut bakery that was calling itself Pink Sprinkles. The latter was forced to change its name to Pink Cupcake Shack because it was apparently violating provisions of the
Version 1
74
A) Consumer Product Safety Act. B) Consumer Bill of Rights. C) Lanham Act. D) Sherman Antitrust Act. E) CAN-SPAM Act.
220) Registration under the Lanham Act provides important advantages to a trademark owner that has used the trademark in interstate or foreign commerce, but it does not A) allow a trademark to be used for more than 83 years. B) provide reciprocity with foreign firms allowing their trademarks to be honored here. C) prevent other firms from obtaining similar trademarks for significant improvements on the original product. D) guarantee protection under the Trademark Law Revision Act. E) confer ownership.
221) Coca-Cola has hired brand police to make sure that the Coca-Cola brand name and logo are not used without written permission. Why is Coca-Cola so rigorous in protecting its trademark? A) Coca-Cola risks losing its generic status. B) In order to maintain the use of its widely recognizable trademark, Coca-Cola must prevent the name from becoming generic. C) The Robinson-Patman Act conferred ownership of the Coke name and other trademarked property to the Coca-Cola Co. D) The government will file charges for trademark infringement only if the owner of the trademark has documented proof of wrongdoing. E) By protecting its trademark, Coca-Cola is protecting the entire soft drink industry from indirect competition.
Version 1
75
222) The manufacturers of Kleenex tissues, Band-Aid bandages, and Clorox bleach may be concerned that their brand names will become generic for the product category. The legislation most likely to address this issue is the A) Sherman Antitrust Act. B) Patent Act. C) Clayton Act. D) Lanham Act. E) The FTC Act.
223)
Which product is leastlikely to be concerned with having its name become generic? A) Kleenex, because it is the most recognized brand B) Jell-O, because there are no other gelatin desserts C) All Sport Disk, because most people call it a Frisbee D) Q-Tips, because this product is not recommended by doctors E) Vaseline, because the product has many cosmetic and personal care uses
224) Trader Joe’s recently filed an opposition against a company applying to trademark the name “Trader Schmo.” Why should Trader Joe’s rigorously protect its trademarked name? A) Trader Joe’s risks losing its status as a generic retail grocer. B) In order to maintain the use of its widely recognizable trademark, Trader Joe’s must prevent its name (or too similar a name) from being used by others. C) The Robinson-Patman Act conferred ownership of the "Trader" name and other trademarked property to Trader Joe’s. D) The government will file charges for trademark infringement only if Trader Joe’s, the owner of the trademark, has documented proof of wrongdoing by Trader Schmo. E) By protecting its trademark, Trader Joe’s is protecting the entire retail grocery industry from indirect competition.
Version 1
76
225) In 1988, the Trademark Law Revision Act resulted in a major change to the Lanham Act. The change allows A) a company to secure rights to a name before its actual use by declaring an intent to use the name. B) products to use generic terms as trademarks. C) inventors to apply for use of Internet domain names. D) a company to declare trademark ownership in foreign markets. E) products to use more than one trademark.
226)
The Trademark Law Revision Act addresses the right of a company to
A) sell to the highest bidder a trademark that has expired or been retired. B) incorporate an unlimited number of new products under the same trademark. C) secure rights to a name before the product is even in use. D) alter its trademark in terms of color, design, or slogan without having to reapply for a new trademark. E) protects U.S. trademark rights throughout the world.
227)
The Madrid Protocol is A) a method of registering a trademark with language adaptations for different countries. B) the criteria for collectively seeking a trademark for an entire industry in Spain. C) a form of national branding, e.g., "Chilean Sea Bass." D) a treaty that facilitates the protection of U.S. trademark rights throughout the world. E) an agreement to stop piracy of noncopyrighted products abroad.
228)
The Federal Trademark Dilution Act
Version 1
77
A) prevents someone from using a trademark on a noncompeting product. B) provides for registration of a company's trademarks. C) allows a company to secure rights to a name before its actual use. D) facilitates the protection of U.S. trademark rights throughout the world. E) allows language adaptations for trademarks in different parts of the world.
229)
The courts see price fixing as perse illegal, which means the courts
A) see price fixing itself as illegal. B) do not view price fixing as illegal unless the intention was to harm the consumer. C) only consider price fixing to be illegal if a company is sued. D) compare the company behavior to behavior typical in its industry in determining legality. E) view price fixing as illegal only if it causes destructive competition.
230) An arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors is referred to as A) a tying arrangement. B) requirement contracting. C) exclusive dealing. D) territorial dealership contracting. E) selective distribution.
231) If a major food company offered supermarket chains special prices and incentives to carry its brand of frozen vegetables and not to carry competing brands, it could be accused of________Blank and would be subject to prosecution if its actions substantially reduced competition.
Version 1
78
A) requirement contracting B) a tying arrangement C) territorial infringement D) a monopolistic practice E) exclusive dealing
232) ________Blank demand buyers purchase all or part of their needs for a product from a particular seller for a period of time. A) Exclusive deals B) Requirement contracts C) Tying arrangements D) Territorial dealership contracts E) Selective promotion contracts
233) If a manufacturer grants a distributor the sole rights to sell a product in a specific geographic area it is called A) exclusive dealing. B) a tying arrangement. C) a selective promotion contract. D) an exclusive territorial distributorship. E) a requirement contract
234) The rights to a John Grisham novel were sold to a British publisher for sales in the United Kingdom and Ireland, a U.S. publisher for the United States and Canada, and an Australian publisher for Australia and New Zealand. This is an example of
Version 1
79
A) exclusive dealing. B) a tying arrangement. C) a selective promotion contract. D) an exclusive territorial distributorship. E) a requirement contract
235) A seller's requirement that the purchaser of one product also buy another item in the line is called A) exclusive dealing. B) a tying arrangement. C) a selective promotion contract. D) an exclusive territorial distributorship. E) a requirement contract.
236) A software manufacturer will only sell its popular line of Pokémon software games to retailers who will also carry its less successful Hello Kitty software game. This is an example of A) exclusive dealing. B) a tying arrangement. C) a selective promotion contract. D) an exclusive territorial distributorship. E) a requirement contract
237) A paint manufacturer will sell a retail paint outlet its paint only if the retailer also buys the manufacturer's line of brushes and accessories. This is an example of
Version 1
80
A) exclusive dealing. B) a tying arrangement. C) a selective promotion contract. D) an exclusive territorial distributorship. E) a requirement contract
238) Which law created a government entity to monitor business practices and stop unfair ones such as misleading promotions? A) Robinson-Patman Act B) Consumer Product Safety Act C) Lanham Act D) Federal Trade Commission Act E) Fair Packaging and Labeling Act
239) The________Blank can require a company to spend money on corrective advertising to rectify previous misleading ads. A) Food and Drug Administration B) U.S. Department of Justice C) Federal Trade Commission D) Better Business Bureau E) American Marketing Association
240) Which of these is an action the Federal Trade Commission (FTC) can take to stop a company from continuing an unfair trade practice?
Version 1
81
A) competitive advertising B) a cease and desist order C) a private ruling D) a consent degree E) a stay
241) Which of these can be required by the Federal Trade Commission (FTC) when a company has issued misleading ads? A) corrective advertising B) a bankruptcy filing C) an advertising injunction D) a truth in advertising order E) comparative advertising
242) There are many diet aids on the market. Some promise immediate weight loss without exercise or a change in diet. Each is accompanied by a testimonial from a satisfied user, but most also contain the statement, "Results may vary." Most likely this statement is included to prevent the Federal Trade Commission (FTC) from requiring the dietary aid distributor to A) engage in self-regulation. B) engage in comparative advertising. C) issue an advertising injunction. D) guarantee truth in advertising. E) run corrective advertising.
Version 1
82
243) For 18 months, Warner-Lambert Co., an American pharmaceutical company, was required to include the following statement in all television advertisements for Listerine: "Listerine will not help prevent colds or sore throats or lessen their severity." The Federal Trade Commission (FTC) imposed this requirement because previous advertising had caused consumers to believe Listerine was effective against colds. This is an example of the FTC action known as A) corrective advertising. B) deceptive advertising. C) unethical advertising. D) cease and desist advertising. E) self-regulation.
244) It had been the Campbell Soup Co.'s practice to insert clear glass marbles into the bottom of soup containers used in print advertisements to bring some of the soup's ingredients (e.g., noodles or chicken) to the surface, thus misrepresenting the amount of solid ingredients in the soup. Which agency would monitor such a practice? A) Food and Drug Administration B) U.S. Department of Justice C) Federal Trade Commission D) Better Business Bureau E) American Marketing Association
245) The Deceptive Mail Prevention and Enforcement Act provides specifications for direct mail sweepstakes, such as requiring what copy to appear in the promotion literature or website? A) "Everybody Wins." B) "You can't win if you don't play." C) "When you enter, we collect and keep your information." D) "No purchase necessary to win." E) "Your information will remain private."
Version 1
83
246) Recent legislation including the Telephone Consumer Protection Act and the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act are reforms that are A) promotion-related. B) price-related. C) distribution-related. D) self-regulated. E) product-related.
247)
The purpose of the national Do Not Call Registry is to A) prevent manufacturers from being deluged with customer complaints during business
hours. B) separate listed from unlisted phone numbers in telephone books and online information directories. C) divert enquiries from manufacturers to their suppliers that are ultimately responsible for product distribution. D) remove identification codes from mobile phones and tablet devices that would identify them as customers as well as their locations. E) protect consumers from unsolicited telemarketing calls.
248) Though online________Blank may provide consumers with more targeted digital advertising, some are concerned about privacy issues. A) espionage B) confidentiality C) tracking D) clickbotting E) spamming
Version 1
84
249) An alternative to government control where an industry attempts to police itself is referred to as A) consumer protection. B) self-regulation. C) industry accountability. D) voluntary compliance. E) government-imposed ethical policing.
250)
Self-regulation refers to
A) governmental guidelines that suggest what is legal and ethical and what is not. B) a self-imposed set of rules set by a specific industry watchdog group that dictates legal and ethical behaviors. C) an alternative to government control where an industry attempts to police itself. D) voluntary compliance to governmental rules and regulations set for a specific industry. E) a set of rules created and enforced by the FTC to which all members of an industry voluntarily agree to comply.
251)
One of the problems associated with self-regulation is A) the lack of a written code of ethics by firms in the industry. B) the intrusive enforcement by the FTC. C) the opportunity corporate for espionage by competitors. D) the absence of an industry association with persuasive power. E) noncompliance by members.
252) The best-known self-regulatory group is the________Blank, which is a voluntary alliance of companies whose goal is to help maintain fair practices. Version 1
85
A) U.S. Department of Justice B) National Chamber of Commerce C) Better Business Bureau D) Federal Trade Commission E) National Federation of Independent Business
253)
The Better Business Bureau
A) is the best-known federal agency involved in monitoring self-regulation of competing businesses. B) has a great deal of legal power to force a company to comply with its regulations. C) cannot be involved with Internet commerce. D) is a voluntary alliance of companies whose goal is to help maintain fair practices. E) is the agency that oversees advertising that runs on television programs.
254) The Better Business Bureau (BBB) tries to use________Blank to get its members to comply with its standards of business conduct. A) the FTC B) industry trade associations C) moral suasion D) the courts E) competitors
255) When a firm or business displays the Better Business Bureau (BBB) Accredited Business logo on its store window or website, it assures consumers that
Version 1
86
A) the company's products comply with current safety standards set by the Consumer Product Safety Commission. B) it is a member of a voluntary alliance of companies whose goal is to help maintain fair business practices. C) the firm has met the standards for qualification as a green marketing firm. D) the firm takes a proactive stance on diversity in the workplace. E) the company incorporates sustainable business practices.
256) Geek Squad set out to provide timely and effective help with all computing needs regardless of the make, model, or place of purchase. Employees were called "agents" and wore uniforms with a Geek Squad logo to create a "humble" attitude that was not threatening to customers. Agents could also be identified by A) their required crew cuts or ponytails. B) their black-and-white vehicles with the logo on the door. C) the tablet devices they constantly carry. D) pocket protectors and faux black glasses, used to play up the theme. E) the location consumers could find them in the store, an actual freestanding "shack."
257)
In 2002, Geek Squad was purchased by leading retailer A) Target. B) Best Buy. C) Apple. D) Amazon. E) GameStop.
258)
Which statement regarding the Geek Squad is most accurate?
Version 1
87
A) Men who need help from the Geek Squad do not want women "Geeks" to help them because it makes them feel inferior. B) The Geek Squad has exclusive rights to the home-help segment thanks to their relationship with Best Buy. C) The Geek Squad can only assist customers who purchase Dell Computers. D) The need for the Geek Squad was the result of many environmental factors, not simply a need for technological knowledge. E) Although the Geek Squad brought more customers into Best Buy, the rate of product returns has only dropped a negligible amount.
259) How would environmental trends influence the success of a manufacturer of highdefinition televisions (HDTVs): (1) growing number of older Americans; (2) population shifts to remote suburbs and small towns; (3) increase in per capita income and standard of living; and (4) increased use of various types of communication technology?
260) List the five environmental forces that have an impact on an organization as well as its suppliers and customers. Provide examples of factors that might be examined as part of environmental scanning for each of these forces.
261) Identify the five environmental forces that affect an organization, and explain them using the coffee industry as an example. What might you predict would be the future of the coffee industry?
Version 1
88
262) Give an example of how each of the five environmental forces can impact an organization's marketing environment.
263)
Describe four generational cohorts that are of interest to marketers today.
264) Describe the interests and lifestyles of the Generation X cohort and explain why it is important to marketers.
265) Describe the interests and lifestyles of the Generation Y cohort and explain why it is important to marketers.
266) Explain the trends in the racial and ethnic composition of the United States. How can marketers use this information?
Version 1
89
267)
How do the macroeconomic conditions as well as consumer income affect marketing?
268)
Define technology. How does it affect marketing?
269)
How does technology affect customer value?
270)
Explain marketspace and electronic commerce and their relevance for marketing.
Version 1
90
271) There are only three major recording labels in the world— Sony BMG, Universal Music Group, and Warner Music Group. They are responsible for the vast majority of music recordings that are made. Oscar says that these three music companies operate as an oligopoly. Siobhan says that they operate as monopolistic competition. Explain how each came to his or her conclusion. Who is correct?
272) Explain the difference(s) between the Sherman Antitrust Act, the Clayton Act, and the Robinson-Patman Act, all of which were enacted to protect competition.
273) What is the difference between a patent and a copyright? Digital technology has required what additional recent legislation?
274) What actions does the Federal Trade Commission have the power to implement when dealing with deceptive or misleading advertising and unfair business practices?
275) Some industries have opted for self-regulation of their members to ensure that each acts fairly. Discuss potential problems associated with self-regulation, and give an example of it.
Version 1
91
276) Many changes in the environment occurred to create the need for the services of Best Buy's Geek Squad. Future changes are also likely to change the way Geek Squad operates. An environmental scan helps illustrate the changes. What are some of the key changes that are occurring?
277) To continue to grow, Best Buy's Geek Squad will need to continue to scan the environment and try new approaches to creating customer value. What are some of the key new approaches that Geek Squad could explore?
Version 1
92
Answer Key Test name: Chap 03_16e_Kerin 1) B 2) A 3) B 4) C 5) D 6) E 7) B 8) E 9) E 10) A 11) E 12) D 13) C 14) A 15) E 16) C 17) E 18) A 19) E 20) A 21) B 22) C 23) E 24) D 25) E 26) B Version 1
93
27) D 28) E 29) C 30) E 31) D 32) A 33) D 34) B 35) B 36) D 37) E 38) D 39) C 40) D 41) B 42) C 43) E 44) D 45) D 46) C 47) A 48) D 49) D 50) C 51) A 52) C 53) D 54) A 55) E 56) D Version 1
94
57) E 58) E 59) A 60) E 61) B 62) C 63) E 64) D 65) C 66) C 67) D 68) B 69) D 70) D 71) E 72) E 73) D 74) A 75) B 76) A 77) B 78) E 79) A 80) D 81) D 82) B 83) D 84) A 85) C 86) D Version 1
95
87) B 88) E 89) E 90) A 91) B 92) B 93) A 94) D 95) D 96) E 97) A 98) B 99) A 100) B 101) D 102) A 103) E 104) C 105) B 106) A 107) D 108) A 109) D 110) D 111) D 112) A 113) C 114) D 115) E 116) D Version 1
96
117) C 118) E 119) B 120) D 121) A 122) B 123) E 124) B 125) B 126) B 127) E 128) E 129) C 130) B 131) C 132) E 133) D 134) A 135) C 136) D 137) E 138) B 139) D 140) C 141) E 142) C 143) D 144) E 145) E 146) C Version 1
97
147) C 148) B 149) D 150) D 151) A 152) D 153) B 154) A 155) B 156) C 157) D 158) B 159) C 160) E 161) C 162) E 163) B 164) A 165) B 166) C 167) D 168) E 169) B 170) C 171) C 172) D 173) E 174) D 175) B 176) B Version 1
98
177) A 178) E 179) B 180) B 181) C 182) D 183) B 184) D 185) B 186) C 187) D 188) B 189) C 190) C 191) E 192) A 193) E 194) D 195) E 196) B 197) D 198) E 199) B 200) C 201) B 202) A 203) D 204) C 205) B 206) E Version 1
99
207) A 208) B 209) B 210) D 211) B 212) E 213) E 214) B 215) E 216) C 217) A 218) C 219) C 220) E 221) B 222) D 223) C 224) B 225) A 226) C 227) D 228) A 229) A 230) C 231) E 232) B 233) D 234) D 235) B 236) B Version 1
100
237) B 238) D 239) C 240) B 241) A 242) E 243) A 244) C 245) D 246) A 247) E 248) C 249) B 250) C 251) E 252) C 253) D 254) C 255) B 256) B 257) B 258) D
Version 1
101
CHAPTER 4 1)
Anheuser-Busch launched its “Responsibility Matters” campaign
A) to promote the health aspects of moderate beer consumption. B) as part of its ongoing awareness and education efforts to curb misuse of alcohol. C) to encourage recycling of both aluminum cans and glass bottles by ultimate consumers and suppliers. D) to educate employees about the importance of serving as role models by drinking responsibly themselves. E) to promote Anheuser-Busch as more socially responsible than its competitors.
2) TheFamily Talk About Drinking guide developed by Anheuser-Busch to help parents and other adults talk with children about underage drinking is an example of A) consumerism. B) preemptive marketing. C) ethical behavior in marketing. D) the social marketing concept. E) cause marketing.
3) Budweiser launched a responsible drinking blimp, which carried the "Designate a Driver" message. It toured across the United States, flying above major festivals, outdoor celebrations, and sporting events. Which of these was the firm exhibiting? A) stockholder responsibility B) profit responsibility C) utilitarianism D) cause marketing E) social responsibility
Version 1
1
4) Anheuser-Busch's commitment to preserving the natural environment by using renewable electricity, water stewardship, and circular packaging is an example of A) utilitarianism. B) social responsibility. C) moral idealism. D) profit responsibility. E) cause marketing.
5)
Ethics refers to the A) religious tenets of a country or ethnic region that shape its culture. B) social norms of a nation, community, or family. C) values and standards of society that are enforceable in the courts. D) moral principles and values that govern the actions and decisions of an individual or
group. E) universal laws of man that go beyond an individual or a group's beliefs of nations or religions.
6) The moral principles and values that govern the actions and decisions of an individual or group are referred to as A) social norms. B) cultural values. C) ethics. D) societal philosophy. E) religion.
7)
Laws refer to
Version 1
2
A) a specific set of behaviors a given society considers to be ethical. B) society's values and standards that are enforceable in the courts. C) the agreed upon codes of behavior for a given nation, community, religious group, or family. D) written documentation of a prescribed set of attitudes, beliefs, and values. E) a code of ethics that defines what may be done in specific business circumstances.
8)
Society's values and standards that are enforceable in the courts are referred to as A) situational ethics. B) cultural norms. C) industry practices. D) laws. E) the Consumer Bill of Rights.
9)
Which statement most accurately distinguishes between laws and ethics?
A) Laws reflect the beliefs of the majority of society while ethics reflect the beliefs of the minority of society. B) Ethics deal with religious and moral beliefs while laws deal with social, economic, and environmental behaviors. C) Ethics deal with internal (personal) issues while laws deal with external (social) issues. D) There is no significant difference between laws and ethics; these terms can be used interchangeably. E) Ethics deal with personal moral principles and values whereas laws are society's values and standards that are enforceable in the courts.
Version 1
3
10) More than 70 percent of the physicians in the Maricopa County (Arizona) Medical Society agreed to establish a maximum fee schedule for health services to curb rising medical costs. All physicians were required to adhere to this schedule as a condition for membership in the society. The U.S. Supreme Court ruled that this agreement violated the Sherman Act and represented price fixing. This example illustrates that the physicians' actions were A) ethical but illegal. B) ethical and legal. C) unethical and illegal. D) unethical but legal. E) altruistic but naïve.
11) China is the world's largest tobacco-producing country and has 300 million smokers. Approximately 1 million Chinese die annually from smoking-related illnesses. This figure is expected to rise to more than 3 million by 2050. China restricts tobacco imports. U.S. trade negotiators advocate free trade, thus allowing U.S. tobacco companies to market their products in China. The U.S. trade negotiators are acting A) ethically but illegally. B) ethically and legally. C) unethically and illegally. D) unethically but legally. E) in ways that cannot be determined by the information provided.
12) An owner of a small publishing company allowed a friend who was starting a handmade soap business to load the publishing company's copy of Microsoft Word onto the friend's computer. This activity is
Version 1
4
A) both legal and ethical. B) caveat emptor. C) illegal but ethical. D) both illegal and unethical. E) sanctioned by the Business Software Alliance since only one copy was transferred.
13) There has been a public outcry about the ethical practices of businesspeople. Public opinion polls show that 20 percent of U.S. adults rate the ethical standards of business executives as "high" or "very high." If most business are thought to be acting within all relevant laws, this suggests that the businesspeople are perceived to be acting A) ethically but illegally. B) ethically and legally. C) unethically and illegally. D) unethically but legally. E) in a socially responsible manner.
14) If a representative of a hotel group offered an existing customer a free night in a hotel property, and when the customer checked into the hotel, the concierge asks the guest to attend a presentation about the hotel group's time share opportunities, this business practice would probably fall into which of the following categories? A) ethical but illegal B) ethical and legal C) unethical and illegal D) unethical but legal E) In today's media age, this practice has become universal; any bias is implied and need not be directly stated under thecaveat emptor doctrine.
Version 1
5
15) A poll by a public opinion research firm found that 67 percent of North Americans are willing to boycott products on ethical grounds. This survey did not ask if the person who was acting on ethical grounds would first see if the boycott was based on facts. Which statement describes a conclusion that should be drawn from this information? A) If you are an ethical person, you should act according to your instincts. B) Realistically speaking, in order to stay in business, all businesses must occasionally behave unethically. C) All businesses will act unethically unless forced by consumers to act morally. D) There is nothing consumers can do to stop unethical business activities. E) Boycotting a product without knowing the facts can be viewed as unethical.
16) Public opinion surveys show that 20 percent of U.S. adults rate the ethical standards of business executives as A) very poor. B) average or above average. C) similar to other professions. D) typical of businesspeople around the world. E) very high or high.
17) According to public opinion surveys,________Blank are considered to be among the least ethical occupations in the United States. A) insurance company professionals B) legal professionals C) advertising practitioners D) health practitioners E) the news media
18)
All of these are reasons for the state of perceived ethical business conductexcept which?
Version 1
6
A) a growing tendency for business decisions to be judged publicly by groups with different values and interests B) the increased pressure on businesspeople to make decisions in a society with diverse value systems C) an increase in the public's expectations of ethical business behavior D) ethical business conduct may have declined E) businesses behaving more ethically during periods of economic recovery
19) Which of these is considered one of the major factors that influences an individual's personal moral philosophy and ethical behavior? A) organizational structures B) legislation C) federal regulatory agencies D) a nation's moral philosophy E) business culture and industry practices
20)
Culture refers to the A) set of values, ideas, and attitudes that are learned and shared among members of a
group. B) music, art, theater, etc., that reflects the values of an entire nation. C) learned behaviors of a specific racial, ethnic, or religious group based on commonly shared ethical principles and protected by laws. D) combination of beliefs and behaviors accepted as correct regardless of a person's age, sex, race, or religion. E) set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
Version 1
7
21) In marketing, the set of values, ideas, and attitudes that are learned and shared among members of a group is referred to as A) ideals. B) morals. C) ethics. D) culture. E) diversity.
22) Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group, and also serves as a socializing force that A) reflects the will of the largest or most powerful minority. B) is determined by the largest generational group at a given point in time. C) becomes the basis of all legislation—federal, state, and local—in societies around the world. D) expresses the diverse backgrounds of a nation's subcultures. E) dictates what is morally right and just.
23)
Which of these is a socializing force that dictates what is morally right and just? A) federal regulatory agencies such as the FTC B) federal, state, and local legislation C) the U.S. Supreme Court D) culture E) organizational structure
24) Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group, and serves as a socializing force that dictates what is morally right and just. This means that moral standards
Version 1
8
A) are relative to particular societies. B) must be universal in order for cross-cultural marketing to be effective. C) are fluid and very easy to change. D) are cyclical so it is important to change with the times. E) are concrete; something is either right or wrong.
25) Copyrights, trademarks, and patents are________Blank, so unauthorized use is illegal in the United States. A) public goods B) intellectual property C) rights granted to individuals or organizations by the WTO for a period of five years D) limited to books, music, and software E) subject to ISO 14000 requirements
26) The unauthorized use of intellectual property can severely affect the owners of that property. This practice also A) levels the playing ground for developing nations by eliminating years of research time. B) accelerates innovation in that industry as new and improved offerings enter the marketplace. C) has a negative impact on the economy through the loss of jobs, royalties, wages, and tax revenue. D) has a positive impact on an entire nation's cultural value system. E) ensures that the prices to consumers are minimized as a result of increased competition.
Version 1
9
27) In most countries, copyrights, trademarks, and patents are viewed as intellectual property, and unauthorized use, reproduction, or distribution of intellectual property is illegal. In a few countries, however, copying enjoys a long tradition, does not carry a stigma, and is legal. For example, copying a masterpiece may be historically considered an art form in its own right. The difference between these two groups of countries shows that________Blank affect(s) the view of ethical behavior held in each country. A) business culture B) industry practices C) corporate cultures D) corporate expectations E) societal culture and norms
28) The Internet supports an easy exchange of ideas and information between individuals and even across countries. One important issue online is opt-in versus opt-out. In general, European websites have opt-in policies while U.S. websites have opt-out policies. With opt-in, customers must ask to be involved in data collection and marketing while opt-out companies automatically include customers in data collection unless the customer specifically asks not to be. Europeans and Americans differ in their expectations about privacy. What ethical factor is illustrated here? A) industry practices B) social legislation C) societal culture and norms D) changes in international law E) organizational culture and expectations
29) Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international brands is pervasive in some countries because laws protecting intellectual property are unclear and sporadically enforced. A business introducing a product into such a country needs to know that its________Blank may lead to trademark infringements.
Version 1
10
A) religious precepts B) antecedent states C) moral idealism D) societal culture and norms E) utilitarianism
30) In marketing, the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings are referred to as A) societal norms. B) societal mores. C) business cultures. D) fair trade practices. E) corporate values.
31) Business culture affects ethical conduct both in the exchange relationship between sellers and buyers and in the A) competitive behavior among sellers. B) purchase behavior among buyers. C) price, service, and product responsibility to the ultimate consumer. D) accountability of buyers and sellers to federal and state regulators. E) perception of ethical behavior as viewed by employers of business firms, not nonprofit organizations.
32)
Ethical exchanges between sellers and buyers should result in
Version 1
11
A) the seller making a profit at the expense of the buyer. B) the buyer getting the product for the best price at the expense of the seller. C) both parties to the exchange being better off after a transaction. D) the seller offering buyers its products and services at cost, especially during a period of recession. E) the buyer forming a strategic alliance with the seller.
33)
The Latin phrasecaveat emptor is a legal concept that means A) "Cash on delivery." B) "Let the buyer beware." C) "Let's make a deal." D) "Be flexible." E) "Get there first."
34) The legal concept of "let the buyer beware," which was pervasive in the American business culture before the 1960s, is referred to as A) ad nauseum. B) mea culpa. C) quid pro quo. D) c'est la vie. E) caveat emptor.
35)
Caveat emptor refers to the
Version 1
12
A) legal concept of "let the buyer beware," which was pervasive in American business culture before the 1960s. B) marketing concept of "be first or be last," implying that the first company to the marketplace wins. C) Latin term meaning that "all is fair in love and war," an attitude that was held by most marketers prior to the 1990s. D) legal concept of "such is life," which created many illegal as well as legal but unethical business practices during the early 1900s. E) Latin phrase meaning "empty promises," which was a charge placed upon many firms during the period after World War II when products failed to meet their marketing claims.
36) Investors should understand that when purchasing stock, the principle of________Blank is in effect. It is in the best interests of investors to do research on the company, so they will make a wise purchase. A) modus operandi B) e pluribus unum C) de facto marketing D) c'est la vie E) caveat emptor
37) In the private purchase of a used or "pre-owned" car,________Blank places the burden on the buyer to make sure the car is worth the purchase price, so it is advisable to take the car first to a mechanic. Once the transaction is complete the buyer typically will not receive a warranty or return option from the seller. A) modus operandi B) caveat emptor C) de facto marketing D) c'est la vie E) anguis in herba
Version 1
13
38) In the 1960s, President Kennedy outlined what is known as the Consumer Bill of Rights. This legislation represents limitations to the legal concept of________Blank that was pervasive before that. A) utilitarianism B) self-regulation C) economic espionage D) consumerism E) caveat emptor
39) The________Blank codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard. A) Lanham Act B) Fair Practices Act C) Caveat Emptor Decree D) Consumer Bill of Rights E) Customer Consent Decree
40)
The Consumer Bill of Rights
Version 1
14
A) codified the ethics of exchange between manufacturers, distributors, and suppliers, including the right to be paid. B) codified the ethics of exchange between manufacturers, distributors, and suppliers, including the rights to safe working conditions, fair pay, and collaborative decision making. C) codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard. D) guaranteed consumers the right to be compensated through replacement, repair, or reimbursement for products that fail to perform as promised by the manufacturer. E) guaranteed consumers the rights that are enumerated in the First Amendment to the U.S. Constitution.
41) The Consumer Bill of Rights codified the ethics of exchange between buyers and sellers. It was outlined by________Blank in________Blank. A) President John F. Kennedy; 1962 B) President Ronald Reagan; 1983 C) President Bill Clinton; 1996 D) President George W. Bush; 2003 E) President Barack Obama; 2009
42) In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. Which right is one of the primary principles? A) right to privacy B) right to be compensated for product defects C) right to be treated with respect D) right to be treated without prejudice E) right to safety
Version 1
15
43) In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. Which right is a major principle that was included? A) right to have legal representation in a court of law B) right to exchange or return products and services within a reasonable period of time C) right to receive fair prices for both products and services D) right to be heard E) right to be compensated for product defects
44) The right to safety manifests itself in industry and federal safety standards for most products sold in the United States. The U.S.________Blank routinely monitors the safety of 15,000 consumer products. A) Chamber of Commerce B) Better Business Bureau C) Consumer Product Safety Commission D) Department of Commerce E) Consumer Protection Agency
45) Dell Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers. The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted. Dell was most likely concerned with which Consumer Bill of Rights principle? A) right to choose B) right to be informed C) right to safety D) right to be heard E) right to satisfaction
Version 1
16
46) Cosco, the world's largest children's products company, recently sold a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined, an infant bed for $49. The prototypes had been tested by Cosco employees who had small children, but this was the only product testing performed. Once sold, several children were injured and some died as a result of using the chair. Cosco was accused of being unconcerned about consumers' right to A) choose. B) be informed. C) be treated courteously. D) safety. E) happiness.
47) Recently, Chillafish recalled some of its Chillafish brand of children's balance bikes. The Consumer Product Safety Commission website stated that overinflated tires could cause the wheel rims to crack and send pieces of the plastic rim flying, posing a laceration hazard to consumers. Chillafish was responding to consumers' right to A) choose. B) be informed. C) be treated courteously. D) safety. E) happiness.
48) The Children's Online Privacy Protection Act (1998) is a law designed to protect consumers' right to A) choose. B) be informed. C) be treated courteously. D) safety. E) be heard.
Version 1
17
49) When shopping on the Internet, most consumers assume their personal information is kept confidential. If a web retailer proposed sharing its customer information with its partners without telling users, this is related most directly to consumers' right to A) be heard. B) be treated courteously. C) safety. D) quality. E) be informed.
50) ________Blank, the cash or free goods required by some retailers in exchange for shelf space to stock new products, may limit a consumer's right to choose. A) Slotting allowances B) Kickbacks C) Economic espionage D) Tying arrangements E) Industrial bribes
51)
In terms of the Consumer Bill of Rights, the right to be heard means that
A) the U.S. Department of Commerce has the right to hear consumer complaints. B) the American Marketing Association has the right to discipline marketers based on customer complaints. C) consumers should have access to public-policy makers regarding complaints about products and services. D) companies should have access to company representatives regarding complaints about fraudulent consumer practices. E) consumers should have access to company representatives regarding new product ideas.
Version 1
18
52) Business culture affects ethical behavior in competition. Two kinds of unethical behavior are most common: A) economic espionage and corruption. B) price fixing and copyright infringement. C) bribery and extortion. D) price fixing and economic espionage. E) economic espionage and antitrust infractions.
53)
Economic espionage refers to
A) the destruction of a competitor's products or services through physical damage of property or damage to their reputation. B) persuading someone to act in one's favor, typically illegally or dishonestly, by a gift of money or other inducement. C) an illicit payment made to someone who has facilitated a transaction or appointment. D) the collection of trade secrets or other intellectual property from foreign countries or governments. E) the clandestine collection of trade secrets or proprietary information about a company's competitors.
54) The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as A) economic espionage. B) industrial espionage. C) marketplace espionage. D) industrial surveillance. E) patent infringement.
Version 1
19
55)
All of these are examples of economic espionageexcept which? A) electronic hacking B) trespassing C) bribery D) searching a competitor's trash E) violations of the noncompete clause in an employment contract
56)
Economic espionage includes such activities as
A) two firms hiring the same musician to write their company jingles. B) hiring people who worked in an executive capacity at a competitor's firm, especially if they didn't have a noncompete clause. C) offering to accept all competitors' coupons, making their effectiveness as a promotional tool negligible. D) searching through a competitor's trash. E) marrying someone who works for a competitor in an executive position.
57)
Economic espionage is most likely to occur in which type of industries? A) fashion B) entertainment C) high-technology D) consumer packaged goods E) beverage
Version 1
20
58) A rival of a branded food product manufacturer was known to have asked a supplier of the food product manufacturer for certain ingredients, using secret codes known only to the manufacturer and the supplier. The rival discovered an email password and was able to access the manufacturer's codes on the supplier's network. This is an example of A) corporate intelligence. B) economic espionage. C) clandestine trade secrets. D) industrial sleuthing. E) competitive surveillance.
59) A national pet health care provider recently made a competitive move when it acquired new information. A rival had "preannounced" a new pet coverage product in a tiny community newspaper six months prior to launching it. The national pet health care provider's marketing manager was notified immediately through a news monitoring service. The firm quickly added a similar offering, and got it to the market before its rival. The marketing manager relied on________Blank to keep abreast of competitors' activities. A) legitimate environmental scanning B) economic espionage C) kickbacks D) corporate piracy E) primary market research
60) An employee of Coca-Cola attempted to share its marketing plan with an employee of PepsiCo for a modest price. What should the PepsiCo employee do?
Version 1
21
A) Buy the marketing plan if assured there would be no legal or ethical repercussions. B) Ignore the offer to buy the marketing plan and hope the ethical dilemma will go away. C) Immediately contact Coca-Cola to advise it of the plot to sell the marketing plan. D) Immediately report the offer to the Better Business Bureau. E) Advise the Coca-Cola employee that it would be ethical to accept the plan if it was offered for free.
61) ________Blank involves unethical conduct by a person entrusted with a position of authority, often to acquire a personal benefit. A) Economic espionage B) Utilitarianism C) Business intelligence D) Oligopoly E) Corruption
62)
The giving and receiving of bribes, kickbacks, and graft are the most common forms of A) economic espionage. B) utilitarianism. C) business intelligence. D) oligopoly. E) corruption.
63)
Bribery is most likely to occur in situations when
Version 1
22
A) industries experience little competition. B) the country has reached a high level of economic development. C) industries are high-tech in nature. D) a monopoly exists in the industry. E) the country is facing economic and political turmoil.
64)
Transparency International is an organization that
A) monitors how developed nations deal with developing nations. B) establishes procedures for ethical international business based on the ISO 7000 Code of Conduct. C) monitors and ranks countries on the basis of their perceived level of corruption. D) creates an acceptable international code of ethics. E) makes sure federal, state, and local governments in the United States abide by the Consumer Bill of Rights.
65) Two laws specifically intended to curb economic espionage and bribery in international marketing are A) Economic Espionage Act and Foreign Corrupt Practices Act. B) Transparency International Act and Dumpster Diving Act. C) Global Rights Protection Act and Foreign Corrupt Practices Act. D) Consumer Bill of Rights Act and Economic Espionage Act. E) Fair Trade Practices Act and Bribery Protection Act.
66)
Corporate culture refers to
Version 1
23
A) a formalized method for controlling the marketing environment. B) the set of accepted standards and practices within a given industry. C) the fundamental, passionate, and enduring principles of an organization that guide its conduct over time. D) the set of values, ideas, and attitudes that is learned and shared among the members of an organization. E) the formal statement of ethical principles and rules of conduct adopted by an organization.
67) The set of values, ideas, and attitudes that is learned and shared among the members of an organization is referred to as A) a mission statement. B) core values. C) the socialization process. D) a code of ethics and conduct. E) corporate culture.
68) Corporate culture manifests itself in many different ways: the ethical behavior of top management, expectations for ethical behavior present in formal codes of ethics, and A) contracts and agreements between members of the same industry. B) state and local laws regarding ethical business behavior. C) the dress codes, manner of work, and sayings of its employees. D) the socially responsible behaviors of its customers. E) the involvement of shareholders with an organization's day-to-day marketing decisions.
Version 1
24
69) Lava.com is an Internet company that helps other organizations implement marketing strategies to help them dominate their industry. Its advertising states, "We ignore the rules, and we let no obstacle stand in your company's way—no matter how bold or impossible your idea may seem." At Lava, bright Internet experts work in one large room, which also contains dartboards, a pool table, and a meditation center. It is next to impossible to tell the company owners from its lowest ranking employee. This describes the Internet company's A) modus operandi. B) mission or vision. C) socialization process. D) business definition. E) corporate culture.
70)
A code of ethics is a formal statement of ethical principles and A) legal restrictions. B) rules of conduct. C) cultural values. D) core values. E) moral laws.
71)
A formal statement of ethical principles and rules of conduct is referred to as A) an ethical mission. B) a moral code. C) a core value pronouncement. D) a code of conduct. E) a code of ethics.
72)
A code of ethics refers to
Version 1
25
A) a formal statement of moral and ethical business attitudes. B) a formal statement of ethical principles and rules of conduct. C) an informal guide of ethical principles that can simplify challenging decisions. D) the written, signed document stating the beliefs and values of each employee in a firm. E) a firm's itemized list of business activities that are and are not consistent with the company's mission statement.
73)
All of these are typically addressed by an organization's code of ethicsexcept which? A) the dress, sayings, and manner of work of employees B) contributions to political parties and government officials C) customer and supplier relationships D) accurate recordkeeping E) conflicts of interest
74)
Which of these is a major reason for the violation of ethics codes? A) government regulation B) family influence C) lack of religious beliefs D) fear of disciplinary action E) lack of specificity
75) Six executives of Tyson Foods, one of the world's largest poultry, beef, and pork processors, were arrested for the illegal smuggling of undocumented foreign workers into the United States to work at Tyson plants. Based on this information, Tyson's violations may have been the result of________Blank, one of the major reasons some company employees engage in unethical behavior.
Version 1
26
A) a mission statement that is too broad B) the absence of a written core values statement C) the absence of whistle-blowers D) top management's behavior E) the absence of a stakeholder code of ethics
76) A home repair referral network profiles home service companies for homeowners looking for a contractor or handyman. To ensure that recommended companies are reliable, the network checks the business licenses, insurance coverages, Better Business Bureau records, and trade references. The recommended home service company also has to agree to________Blank, which includes maintaining professionalism and guaranteeing the quality of its work. A) a statement of cultural values B) a statement of values and beliefs C) an industry endorsement D) a code of ethics E) a due diligence contract
77) The American Marketing Association Statement of Ethics is centered on three general norms, one of which is to A) initiate fair and honest dialogues in developing markets. B) foster trust in the marketing system. C) champion new legislation that protects ethical business firms and punishes those who abuse consumer trust. D) support governmental agencies in their quest to identify and prosecute those who break the laws of ethical marketing. E) contribute to society's well-being through charitable contributions and cause-related marketing efforts.
Version 1
27
78) The American Marketing Association Statement of Ethics identifies six key aspirational ethical values, one of which is A) diversity. B) profitability. C) respect. D) perseverance. E) charity.
79) A health club wishes to follow the American Marketing Association Statement of Ethics and decides to offer a modified workout class at a very low price for senior citizens who otherwise might not be able to afford their services. This action exhibits which key AMA ethical value? A) honesty B) fairness C) respect D) openness E) responsibility
80) Even though his business is very small, the owner of a local restaurant wants to follow the American Marketing Association Statement of Ethics. Every quarter there is a company cookout. After the meal, the employee (from owner to members of the cleaning staff) who had the best idea for improving the restaurant is awarded a $25 gift certificate plus a T-shirt that reads, "Great Minds Think Like Me." This exemplifies which key AMA ethical value? A) honesty B) responsibility C) fairness D) respect E) openness
Version 1
28
81)
Employees who report unethical or illegal actions of their employers are referred to as A) whistle-blowers. B) scabs. C) nepotists. D) corporate snitches. E) ombudsmen.
82)
Whistle-blowers refer to
A) employees who are simultaneously employed by competing firms and who trade company secrets. B) employees who blackmail or extort money from their employers. C) employees who are coerced by their employers to participate in illegal or unethical activities. D) customers who report unethical or illegal actions of the firms that market the offerings they purchased. E) employees who report unethical or illegal actions of their employers.
83) An employee who contacts the SEC to report her company's use of illegal accounting procedures is an example of A) a crony. B) a scab. C) a whistle-blower. D) a corporate snitch. E) an ombudsman.
84)
Which statement best describes the activities of a whistle-blower?
Version 1
29
A) An employee is unhappy because his company is downsizing. B) An employee tells the Consumer Product Safety Commission his company falsified safety reports on a child's car seat. C) A salesperson for a company finds out that a member of his softball team, who works for another firm, stole some office supplies so she tells his boss, a mutual friend. D) An employee criticizes his employer's finance personnel to his fellow coworkers for picking the wrong stocks in his retirement fund; they lost value last year due despite a strong market. E) An employee spends the afternoon at work studying for her test rather than counting inventory as she was supposed to be doing.
85)
Which statement best describes the activities of a whistle-blower?
A) Mattel issued a statement apologizing for the 150 of the 10 million Power Wheels cars and trucks the company sold that had caught on fire. B) Mattel research engineers proved that the spate of fires in the company's Power Wheels cars and trucks was the result of consumers' tinkering with the engine. C) A former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and slightly burned its rider. D) The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the 10 million units that had been sold. E) A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use.
86) Two former sales representatives of Amgen, a biotech company, alleged the company strongly encouraged its salesforce to search confidential medical records in dermatologists' offices to find names of patients that would benefit from Amgen's drug Enbrel, a psoriasis treatment. After reporting this practice to the president, one rep was fired and the other resigned after receiving a poor performance review. Both sued Amgen, claiming they did not go along with the scheme because they objected to it as being unethical. The two sales representatives are
Version 1
30
A) scabs. B) cronies. C) whistle-blowers. D) contrarians. E) ombudsmen.
87)
Ultimately, ethical choices are based on A) the personal moral philosophy of the decision maker. B) societal culture and norms. C) business culture and industry practices. D) laws enacted by Congress and regulations by federal and state governments. E) chance and opportunity.
88)
All of these statements about a person's moral philosophy are trueexcept which? A) Moral philosophy is usually in written form in the workplace. B) Moral philosophy can be learned through formal education. C) Moral philosophy is influenced by the corporate culture an individual is in. D) Moral philosophy can be learned through the process of socialization with others. E) Moral philosophy is influenced by the societal culture an individual is in.
89) Two prominent personal moral philosophies that have direct bearing on marketing practice are
Version 1
31
A) existentialism and pragmatism. B) pragmatism and idealism. C) moral idealism and utilitarianism. D) social responsibility and personal ethics. E) moral relativism and situational ethics.
90) A personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome, is referred to as A) social responsibility. B) moral idealism. C) utilitarianism. D) hedonism. E) religion.
91)
Moral idealism refers to a personal moral philosophy that centers on a belief A) that good will always triumph over evil. B) in the Golden Rule, "You should treat others as you would like others to treat you." C) that all human beings are basically good. D) that individual rights or duties are universal, regardless of the outcome. E) in "the greatest good for the greatest number."
92)
Moral idealism refers to a
Version 1
32
A) personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior. B) democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels. C) societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic embodied in the U.S. Constitution's Bill of Rights. D) formal statement of ethical principles and rules of conduct. E) personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.
93) A moral philosophy that exists in the Consumer Bill of Rights and is favored by moral philosophers and consumer interest groups is referred to as A) social responsibility. B) moral idealism. C) utilitarianism. D) hedonism. E) the Golden Rule.
94) Why did 3M phase out the production of a chemical used as an ingredient in its Scotchgard fabric protector? A) New advances in fabric manufacturing, such as dirt-repellant fibers, made the need for the product obsolete. B) The product accidentally violated the patent rights of a competitor. C) Traces of the potentially harmful chemical were found in humans, so the product was voluntarily halted. D) New governmental legislation banned the production of one of the product's key component chemicals. E) The company developed a new product that didn't contain this chemical and was less costly to produce, resulting in a significantly higher profit margin.
Version 1
33
95) 3M stopped production of a chemical it had made for more than 40 years when tests showed the chemical could be accumulated in human tissue, even though the products in which it was used had no known harmful health or environmental effect. The voluntary action by 3M is an example of A) individualism. B) utilitarianism. C) existentialism. D) moral idealism. E) socialism.
96) Western Digital, the Irvine, California-based maker of disk drives, recalled about 400,000 of its hard drives because of a faulty internal chip. The chip would not affect the disk drive motor until after 6 to 12 months of use. This delay in the problem's appearance meant that many consumers would not think to blame the disk drive manufacturer. But, instead of taking the less expensive route of remaining quiet about the problem, Western Digital chose to offer replacement disk drives for all those that had the faulty chip. This action is an example of A) hedonism. B) utilitarianism. C) moral idealism. D) existentialism. E) socialism.
97) The original owners of Ben & Jerry's Homemade Holdings Inc. believed that the company should not harm the environment in any way but actually improve it. This is an example of
Version 1
34
A) moral capitalism. B) utilitarianism. C) existentialism. D) moral idealism. E) socialism.
98) A personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior is referred to as A) utilitarianism. B) hedonism. C) existentialism. D) moral idealism. E) socialism.
99) According to the personal moral philosophy of________Blank, if the benefits of a behavior exceed the costs, that behavior is ethical. A) hedonism B) utilitarianism C) existentialism D) moral idealism E) socialism
100)
The personal moral philosophy of utilitarianism underlies the economic tenets of
Version 1
35
A) existentialism. B) moral idealism. C) communism. D) socialism. E) capitalism.
101) Nestlé's marketing of Good Start infant formula promoted the product as hypoallergenic. However, some severely milk-allergic infants experienced serious side effects after using Good Start, including convulsive vomiting. A Nestlé vice president defended the claim and product, saying, "I don't understand why our product should work in 100 percent of cases. If we wanted to say it was foolproof, we would have called it allergy-free. We call it hypo-, or less, allergenic." The vice president’s statement exemplifies which philosophy? A) existentialism B) moral idealism C) communism D) socialism E) utilitarianism
102) The idea that organizations are part of a larger society and are accountable to that society for their actions is referred to as A) stakeholder responsibility. B) social responsibility. C) profit responsibility. D) utilitarianism. E) moral idealism.
103)
Social responsibility is
Version 1
36
A) a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior. B) a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels. C) a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the U.S. Constitution's Bill of Rights. D) the view that organizations are part of a larger society and are accountable to that society for their actions. E) a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.
104)
Which statement about social responsibility is most accurate?
A) The three concepts of social responsibility are economic responsibility, internal social responsibility, and external social responsibility. B) Organizations are part of a larger society and are accountable to that society for their actions. C) Societal responsibility focuses on the obligations an organization has to its customers, employees, suppliers, and distributors. D) The duty of an organization is most easily understood at the societal responsibility level. E) Social responsibility cannot be taught; it is an innate outgrowth of a person's moral and ethical belief system.
105) Gap Inc. ended its relationship with 23 foreign production facilities due to code violations. Several closings occurred because of the use of child labor. In response to these events, Gap Inc. created a large team whose purpose is to travel worldwide to ensure compliance with its Code of Vendor Conduct. This is an example of
Version 1
37
A) cause marketing. B) profit responsibility. C) utilitarianism. D) moral idealism. E) social responsibility.
106) The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner that would benefit the organization but not society. In short, Exxon did not demonstrate A) social responsibility. B) value consciousness. C) green marketing. D) profit responsibility. E) cause marketing.
107) Profit responsibility, societal responsibility, and stakeholder responsibility are three concepts of A) cause marketing. B) moral idealism. C) social responsibility. D) utilitarianism. E) green marketing.
108) There are three concepts of social responsibility, each relating to particular constituencies. Profit responsibility is characterized by
Version 1
38
A) the triple bottom line, to achieve sustainable, long-term growth. B) a focus on the obligations an organization has to those who can affect achievement of its objectives. C) an engagement in open and free competition without deception or fraud. D) an unrelenting customer focus. E) a focus on seller-oriented outcomes.
109) There are three concepts of social responsibility, each relating to particular constituencies. Stakeholder responsibility is characterized by A) the triple bottom line, to achieve sustainable, long-term growth. B) a focus on the obligations an organization has to those who can affect achievement of its objectives. C) an engagement in open and free competition without deception or fraud. D) an unrelenting customer focus. E) a focus on seller-oriented outcomes.
110) There are three concepts of social responsibility, each relating to particular constituencies. Societal responsibility is characterized by A) the triple bottom line, to achieve sustainable, long-term growth. B) a focus on the obligations an organization has to those who can affect achievement of its objectives. C) an engagement in open and free competition without deception or fraud. D) an unrelenting customer focus. E) a focus on seller-oriented outcomes.
111)
Profit responsibility refers to
Version 1
39
A) the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit. B) the view that an organization has an obligation to those who can affect the achievement of its objectives. C) the concept that no expansion or additional research and development will occur until a company is making a profit. D) the idea that organizations are part of a larger society and are accountable to that society for their actions. E) the duty of a firm to maximize profits for its owners or stockholders.
112)
The duty of a firm to maximize returns for its owners or stockholders is referred to as A) social responsibility. B) value consciousness. C) benefit marketing. D) profit responsibility. E) stakeholder responsibility.
113)
The groups primarily served by a firm exhibiting profit responsibility include A) the general public, public interest groups, and the environment. B) consumers, employees, suppliers, and distributors. C) owners and stockholders. D) the general public and competitors. E) state and federal government.
114) Genzyme, the maker of Cerdelga, a drug that treats a genetic illness called Gaucher disease that affects 10,000 people worldwide, has been criticized for charging up to $300,000 for a year's worth of Cerdelga. This is an example of the manufacturer adhering to its
Version 1
40
A) utopian responsibility. B) moral idealism. C) social responsibility. D) cause marketing strategy. E) profit responsibility.
115)
Stakeholder responsibility refers to the
A) view that an organization has an obligation to those who can affect the achievement of its objectives. B) obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit. C) duty of a firm to maximize profits for its owners or stockholders. D) concept that no expansion or additional research and development will occur until a company is making a profit. E) idea that organizations are part of a larger society and are accountable to that society for their actions.
116) The view that an organization has an obligation to those who can affect the achievement of its objectives is referred to as A) social responsibility. B) value consciousness. C) benefit marketing. D) stakeholder responsibility. E) profit responsibility.
117)
The groups primarily served by a firm exhibiting stakeholder responsibility include
Version 1
41
A) the general public, public interest groups, and the environment. B) consumers, employees, suppliers, and distributors. C) owners and stockholders. D) the general public, owners, and stockholders. E) government, owners, and stockholders.
118) Source Perrier S.A., the supplier of Perrier bottled water, exercised________Blank when it recalled 160 million bottles of water in 120 countries after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and the profit from $40 million in lost sales. Even though the chemical level was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product." A) moral idealism B) utilitarianism C) cause marketing D) profit responsibility E) stakeholder responsibility
119) Volkswagen AG was widely criticized for its failure to practice________Blank when it employed sophisticated software on selected Volkswagen, Audi, and Porsche models that impaired its diesel emissions devices required by the U.S. Environmental Protection Agency. This software disguised the amount of smog pollutants emitted from selected cars. A) moral idealism B) stakeholder responsibility C) utilitarianism D) cause marketing E) profit responsibility
Version 1
42
120)
Societal responsibility refers to the
A) obligation that organizations have to the preservation of the ecological environment and the general public. B) obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit. C) view that an organization has an obligation to those who can affect the achievement of its objectives. D) duty of a firm to maximize profits for its owners or stockholders. E) idea that organizations are part of a larger society and are accountable to that society for their actions.
121) The obligation organizations have to the preservation of the ecological environment and to the general public is referred to as A) community responsibility. B) stakeholder responsibility. C) benefit marketing. D) societal responsibility. E) profit responsibility.
122) Most paint is neither biodegradable nor friendly to the environment because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with an environmentally friendly, soy-based paint (even though it costs more) would be practicing A) profit responsibility. B) cause marketing. C) stakeholder responsibility. D) mass marketing. E) societal responsibility.
Version 1
43
123) The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting more African Americans to use doctors for regular health care maintenance instead of only when they are sick. This is an example of A) profit responsibility. B) cause marketing. C) stakeholder responsibility. D) societal responsibility. E) mass marketing.
124) The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth is referred to as A) social responsibility. B) the triple bottom line. C) the marketing concept. D) sustainability. E) social entrepreneurship.
125)
Triple bottom line refers to
Version 1
44
A) the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. B) the obligations an organization has to those who can affect achievement of its sales, profit, and market share objectives simultaneously. C) the recognition of the need for organizations to be responsible simultaneously to shareholders, employees, and customers. D) the obligations an organization has to practice profit, stakeholder, and societal responsibility simultaneously. E) three different financial statements prepared in three different formats: one for governmental regulators, one for shareholders, and one for internal use.
126)
All of these are the result of an interest in the triple bottom lineexcept which? A) sustainable development B) cause marketing C) environmental scans D) green marketing E) social audits
127) The effort to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs is referred to as A) sustainable marketing. B) recycle marketing. C) cause marketing. D) environmental marketing. E) recycling.
128)
Green marketing is
Version 1
45
A) the purchasing of products from producers whose farming practices are Fair Trade certified. B) the marketing efforts taken by new and smaller companies that lack both the experience and resources of their major competitors. C) the marketing efforts to produce, promote, and reclaim environmentally sensitive products. D) the marketing of products that have in no way been altered or reprocessed by artificial means. E) the marketing of those products made exclusively from recycled materials.
129) Marketing efforts to produce, promote, and reclaim environmentally sensitive products are referred to as A) green marketing. B) lifecycle marketing. C) cause marketing. D) environmental marketing. E) conservation marketing.
130) At 3M, the "Pollution Prevention Pays" (3P) program has generated over 11,000 3P projects that eliminated more than two billion pounds of air, water, and solid-waste pollutants from the environment. This is an example of A) proactive marketing. B) green marketing. C) consumerism. D) an ecological code of ethics. E) cause marketing.
Version 1
46
131) Levi Strauss & Co. uses eight recycled plastic bottles in each pair of its Waste < Less jeans, which are composed of at least 20 percent recycled content. This is an example of A) proactive marketing. B) consumerism. C) an ecological code of ethics. D) green marketing. E) cause marketing.
132)
Which of these is an example of green marketing?
A) McDonald's added apple snacks to its Happy Meals targeted at children. B) Lowe's and Home Depot promoted the sale of lumber and other wood products. C) Levi Strauss marketed prewashed jeans. D) Joe's Lawn Service offered a special spring cleanup promotion. E) Walmart implemented buying practices that encourage its suppliers to use containers and packing made from corn, not oil-based resins.
133) Chrysler recycles thousands of tons of wood pallets, cardboard, and paper annually. Chrysler cars are 75 percent recyclable. Chrysler's recycling programs are examples of A) recycle marketing. B) cause marketing. C) green marketing. D) environmental marketing. E) triple-top line marketing.
134) Many fast-food restaurants, including Burger King, McDonald's, and Wendy's, no longer use polystyrene containers (which degrade very slowly in a landfill) for packaging their products. Rather, these firms wrap their burgers in recycled paper wrappers, containers, and bags. These fast-food restaurants are practicing Version 1
47
A) triple-top line marketing. B) green marketing. C) consumerism. D) an ecological code of ethics. E) cause marketing.
135) FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of A) demarketing. B) triple-top line marketing. C) preemptive compliance. D) green marketing. E) cause marketing.
136)
ISO stands for A) International Service Organizations. B) Integrated Standards Organization. C) International Standards Organization. D) International Sustainable Offerings. E) Integrated Solutions Organization.
137)
ISO 14000 refers to
Version 1
48
A) a plan to encourage the purchase of "Made in America" products. B) an international plan to further green marketing practices. C) an initiative for organizations to support the International Special Olympics Committee and its athletes without endangering its nonprofit status. D) the name of the agreement that created the North American Free Trade Association. E) a set of standards for registration and certification of a manufacturer's quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization (ISO).
138)
A global undertaking to further environmental quality and green marketing efforts is the A) ISO 14000 initiative. B) Kyoto Protocol. C) Green World (GW) initiative. D) World Wildlife Federation Conference. E) Madrid Protocol initiative.
139) The marketing practice which ties charitable contributions of a firm directly to the customer revenues produced through the promotion of one of its products is referred to as A) marketing philanthropy. B) marketing patronage. C) relationship marketing. D) transactional marketing. E) cause marketing.
140)
Cause marketing is a tactic wherein
Version 1
49
A) the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. B) organizations recognize the need to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. C) marketing services are provided at little or no cost for the purpose of promoting or supporting a worthy cause. D) companies employ marketing efforts to produce, promote, and reclaim environmentally sensitive products. E) marketing actions that took place actually caused more good than was anticipated.
141)
A key difference between cause marketing and a charitable contribution is
A) a charitable contribution provides an organization with a lower tax deduction. B) there is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the number of cause marketing efforts it can make during a fiscal year. C) charitable donations are contributed at the sole discretion of the firm, while for cause marketing the amount is directly affected by consumers' purchases. D) cause marketing is generally linked to public causes and concerns, while charitable contributions are generally given to private institutions. E) there is essentially no difference between a charitable contribution and cause marketing.
142) Cause marketing programs incorporate all three concepts of social responsibility by addressing public concerns, satisfying customer needs, and A) protecting the environment. B) enhancing corporate sales and profits. C) following industry-specific codes of ethics. D) fulfilling societal objectives. E) demonstrating ethical behavior.
Version 1
50
143) MasterCard International links usage of its card with fund-raising for institutions that combat cancer, heart disease, child abuse, drug use, and muscular dystrophy. This is an example of A) cause marketing. B) philanthropic marketing. C) green marketing. D) public relations. E) societal promotions.
144) Procter & Gamble has developed a successful brand campaign in partnership with UNICEF that includes the Pampers 1 Pack = 1 Vaccine initiative, which has protected 300 million women and their babies against maternal and neonatal tetanus. This is an example of A) philanthropic marketing. B) corporate altruism. C) the marketing concept. D) green marketing. E) cause marketing.
145) During its Drive to End Hunger campaign to help fight hunger among nearly nine million older Americans, Quaker State donated 25 cents per bottle sold of five-quart specially-marked oil products to the AARP Foundation that works on this issue. This is an example of A) philanthropic marketing. B) corporate altruism. C) the marketing concept. D) green marketing. E) cause marketing.
Version 1
51
146) When a customer buys Avon's Pink Power Pro Nail Enamel, 100 percent of the profits go to the Avon Breast Cancer Crusade. This is an example of A) philanthropic marketing. B) corporate altruism. C) cause marketing. D) the marketing concept. E) societal marketing.
147) A Toyota dealership in British Columbia, Canada, donated $50 to the Make-A-Wish Foundation of Canada for each Toyota purchased during a particular month. This is an example of how a small business can engage in A) philanthropic marketing. B) cause marketing. C) marketing altruism. D) public relations marketing. E) societal marketing.
148) Eighty percent of consumers say they will switch to a brand or retailer that supports a good cause if the price and quality of brands or retailers are equal. In short, cause marketing may be a valued________Blank for brands and companies, all other things being equal. A) sales approach B) societal marketing trend C) public relations exercise D) transactional marketing practice E) point of difference
Version 1
52
149)
Which statement concerning cause marketing is most accurate?
A) A large majority of consumers say they will switch to a brand that supports a good cause, provided the price and quality of the brands are equal. B) The profits generated by cause marketing are usually based in "goodwill" rather than actual revenue. C) The positive effects of cause marketing are significant during the promotion, but they lose their benefit almost immediately after the promotion runs its course. D) Cause marketing rarely creates a point of difference for the firm that engages in this marketing practice. E) Women are much more suspicious about the sincerity of cause marketing programs than men; therefore, their contributions are significantly less.
150) A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility is referred to as A) a business mission. B) a social audit. C) the strategic marketing process. D) a SWOT analysis. E) an accountability analysis.
151)
A social audit refers to
Version 1
53
A) a systematic assessment of a firm's compliance to fair hiring practices and commitment to diversity. B) a companywide assessment of employees at all levels to determine the compliance to the organization's code of ethics. C) conducting business in a way that protects the natural environment while making economic progress. D) a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility. E) the ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis.
152) Converting socially responsible ideas into actions involves careful planning and monitoring of programs. Many companies develop, implement, and evaluate their social responsibility efforts by means of a(n) A) social audit. B) financial audit. C) action plan. D) tactical plan. E) research plan.
153)
The first step in any social audit is to
A) evaluate current social responsibility programs. B) determine the amount of money that can be allocated for societal marketing programs. C) recognize a firm's social expectations and the rationale for engaging in social responsibility endeavors. D) identify social responsibility causes consistent with the company's mission. E) determine the types of resources needed to achieve social responsibility objectives.
Version 1
54
154) A social audit is a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility. Which of these is one of the five steps of the audit? A) identification of environmental forces that could interfere with the firm's plans B) evaluation of possible benefits both tangible and intangible to the firm's triple bottom line C) identification of social responsibility causes or programs consistent with the company's mission D) selection of a team leader and assignment of tasks and task deadlines for team members E) creation or selection of a theme, slogan, spokesperson, etc., for marketing cohesiveness
155)
What is the fifth and last step of a social audit?
A) evaluation of social responsibility programs and activities undertaken and assessment of future involvement B) determination of organizational objectives and priorities for programs and activities it will undertake C) specification of the type and amount of resources necessary to achieve social responsibility objectives D) recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors E) identification of social responsibility causes or programs consistent with the company's mission
156) Conducting business in a way that protects the natural environment and embraces diversity, equity, and inclusion in its business practices while making economic progress is referred to as
Version 1
55
A) green marketing. B) sustainable development. C) stakeholder responsibility. D) the marketing concept. E) environmental marketing.
157)
Sustainable development refers to
A) placing restraints on a company's growth until all ancillary support services are in place to ensure a new venture's success. B) global economies that are slowly moving from an agrarian-base to an industrial base. C) adhering to worldwide standards for environmental quality and green marketing practices. D) marketing efforts to produce, promote, and reclaim environmentally sensitive products. E) conducting business in a way that protects the natural environment and embraces diversity, equity, and inclusion in its business practices while making economic progress.
158)
Which statement about sustainable development is most accurate?
A) A company that makes its furniture from rare tropical woods is practicing sustainable development. B) Currently, sustainable development is a luxury that only large multinational companies can engage in. C) Sustainable development is achieved when a firm's sales growth rate increases an average of 1 to 2 percent a year for a period of at least five years. D) A mining company that replants native vegetation after mining operations cease practices sustainable development. E) Unfortunately, only a small number of consumers care whether a company practices sustainable development.
Version 1
56
159) Arrowhead brand Mountain Spring Water changed its bottle by reducing the size of its label by one-third, using 30 percent less plastic, and making the bottle more flexible for easier recycling. These efforts are part of the company's goal to engage in A) sustainable development. B) market development. C) an oligopoly. D) cause marketing. E) environmental downsizing.
160) Biogen incorporates diversity, equity, and inclusion initiatives into its sustainable development program in part to A) foster innovation and enhance teamwork. B) market development. C) create an oligopoly amongst itself and its largest competitors. D) provide a platform for its green marketing. E) prevent downsizing.
161) Consumers have an obligation to________Blank in the exchange process and in the use and disposition of products. A) get as much as they can for their money B) support cause marketing efforts C) reveal any and all pertinent personal information D) act ethically and responsibly E) seek products with ISO 14000 certification
Version 1
57
162) Filing warranty claims after the claim period, misredeeming coupons, and making fraudulent returns of merchandise are examples of A) normal and reasonable consumer behavior. B) unethical practices by consumers. C) acceptable consumer code of ethics. D) costs to be passed along to shareholders as a part of doing business. E) violations of the Consumer Bill of Rights.
163) Practices such as misredeeming coupons, making fraudulent returns of merchandise, filing warranty claims after the claim period are A) acceptable provided the merchant providing the service has not violated the Consumer Bill of Rights. B) acceptable provided the salesperson doesn't mind. C) occasionally permitted when two different firms are competing for a customer's business and both are using equally less than ethical practices. D) not acceptable because consumers have an obligation to act ethically and responsibly. E) not acceptable unless the participants are nonprofit organizations or charities.
164)
Which statement about consumer ethics is most accurate? A) Consumer complaints about online auction fraud outnumber all other reports of online
crime. B) The cost to marketers of unethical consumer behavior is negligible in terms of lost sales. C) The potential cost to marketers of unethical consumer behavior is dramatically reduced by investing in loss prevention training. D) Retailers lose about $1 million a day from shoplifting. E) At some point, every person shoplifts or participates in an unethical exchange; to retailers, it is simply the cost of doing business.
Version 1
58
165)
Which statement about consumer ethics is most accurate?
A) Most consumers' unethical acts are motivated by economic need. B) Consumers are more likely to act unethically if they believe they can get away with it. C) Consumers are rarely impacted by the unethical behaviors of those around them. D) Most consumers who shoplift do so because a salesperson has been insulting or rude. E) Few customers behave unethically towards "big business" but rather toward smaller, independently owned businesses.
166)
Although research shows consumers are sensitive to ecological issues, they may
A) be unable to make an ecologically sound purchase because eco-friendly products are significantly less expensive, indicating that they are of lesser quality. B) lack the knowledge to make informed decisions dealing with the purchase, use, and disposition of products. C) believe that protecting the environment in one area actually can create disruptions in another area. D) believe that ecological issues are still a matter of opinion even within the scientific community itself. E) believe that public sentiment toward ecological issues has now reached a consensus— jobs are more important than environmental protection issues.
167) Making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is referred to as A) greenwashing. B) faux environmentalism. C) environmental spin. D) gray marketing. E) anti-sustainability.
Version 1
59
168)
Greenwashing refers to
A) marketing efforts to produce, promote, and reclaim environmentally sensitive products. B) conducting business in a way that protects the natural environment while making economic progress. C) the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice. D) the practice of deliberately concealing the mistakes that polluters make regarding the environmental disasters they perpetrated. E) the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.
169)
Toyota Motor Corporation now has a goal to transition from carmaker to A) gasoline combustion engine expert. B) space exploration firm. C) entertainment giant. D) technology guru. E) mobility company.
170) According to Rommel Momen, Mirai Manager at Toyota, “The Toyota Way is made up of two pillars,________Blank and continuous improvement.” A) customer service B) appreciation of history C) respect for people D) rewarding stakeholders E) competition
Version 1
60
171) Toyota employs all of these principles and practices as part of "The Toyota Way"except which? A) kaizen (continuous improvement) B) genchi genbutsu (empower people) C) respect D) challenge E) competition
172) According to a Toyota executive, “After Superstorm Sandy, the Food Bank was having a problem fulfilling the needs of all the displaced residents, so we implemented a Toyota production system to help them package and distribute food more efficiently.” This is an example of which concept of social responsibility? A) societal responsibility B) value responsibility C) benefit responsibility D) profit responsibility E) stakeholder responsibility
173) Three of the six specified actions in Toyota’s Challenge 2050 pertain to the company’s efforts to A) provide livable wages and workplace conditions. B) expand into new product categories. C) create recyclable products. D) respond to competitors. E) minimize CO2 emissions.
Version 1
61
174)
The Toyota Mirai is a unique vehicle for the Toyota Motor Corporation because it is A) the next generation all-electric car. B) a gas-electric hybrid helicopter. C) a compressed natural gas car. D) a hydrogen fuel cell vehicle. E) a vehicle designed for ride-sharing.
175)
Explain how Anheuser-Busch practices societal responsibility.
176)
Describe the difference between ethics and laws.
177) Explain the four ways to classify marketing decisions according to ethical and legal relationships.
178) Provide concrete examples for the four classifications of marketing decisions according to ethical and legal relationships.
Version 1
62
179) Describe each of the three factors included in the framework for understanding ethical behavior that influence one's personal moral philosophy and ethical behavior.
180)
Explain the difference between societal culture and business culture.
181) How did President John F. Kennedy move American business culture away from the concept ofcaveat emptor in the 1960s?
182) Business culture affects ethical behavior in competition. Briefly discuss the two most common kinds of unethical competitive behavior. In answering, provide concrete examples for both.
Version 1
63
183)
Identify and describe the two types of personal moral philosophy.
184)
Define the moral philosophy of utilitarianism and explain its relationship to capitalism.
185) Body Bazaar: The Market for Human Tissue in the Biotechnology Age is a book by Lori Andrews and Dorothy Nelkin. According to the book, "Body parts are bought and sold for medical research, diagnostics, and therapies. They are marketed to museums and personal collectors. And pieces of people are increasingly being used as raw materials for products—from placenta-enriched shampoos to experimental DNA-run computers. Blood has become one of the most valuable commodities on Earth. While petroleum sells for $100 a barrel, an equivalent quantity of blood products is worth $67,000." Use this quote to explain why ethics is such a difficult concept to understand.
186)
Describe the three major concepts of social responsibility.
Version 1
64
187) An increasing percentage of turkeys are now being marketed as "free range." Consumers typically pay $1 more per pound for free-range turkeys, which are thought to have lived more "humane" or "avian" lives—and as a result, to taste better than conventionally raised turkeys. The USDA defines a free-range bird as one that has been allowed "access to the out-of-doors." Are turkey growers who allow their birds to access the out-of-doors only moments before they are killed acting in a socially responsible manner?
188) A recent survey found that 79 percent of Internet and e-commerce companies take absolutely no social responsibility. Even more worrying is the finding that 75 percent of these Internet companies justify this omission on the grounds that they don't have any environmental or social impacts, while 55 percent said they didn't have time to think about these issues, and 50 percent said they didn't have the expertise to address them. Would these Internet-based companies benefit from acting more socially responsible? Explain your answer.
189)
Define green marketing and provide an example.
190)
What is the difference between standard charitable contributions and cause marketing?
Version 1
65
191) MasterCard International links usage of its card with fund-raising for institutions that combat cancer, heart disease, child abuse, and muscular dystrophy. MasterCard gives a modest percentage of charges from its credit card charges to the institutions. What is this called and how does it affect cardholders' behavior?
192)
What are the five steps in a social audit?
193) Research on unethical consumer behavior, such as fraudulent automobile insurance claims or unauthorized downloading of music, movies, and software, indicates that these acts are rarely motivated by economic need. What influences these behaviors?
Version 1
66
Answer Key Test name: Chap 04_16e_Kerin 1) B 2) C 3) E 4) B 5) D 6) C 7) B 8) D 9) E 10) A 11) D 12) D 13) D 14) D 15) E 16) E 17) C 18) E 19) E 20) A 21) D 22) E 23) D 24) A 25) B 26) C Version 1
67
27) E 28) C 29) D 30) C 31) A 32) C 33) B 34) E 35) A 36) E 37) B 38) E 39) D 40) C 41) A 42) E 43) D 44) C 45) C 46) D 47) D 48) B 49) E 50) A 51) C 52) A 53) E 54) A 55) C 56) D Version 1
68
57) C 58) B 59) A 60) C 61) E 62) E 63) E 64) C 65) A 66) D 67) E 68) C 69) E 70) B 71) E 72) B 73) A 74) E 75) D 76) D 77) B 78) C 79) E 80) D 81) A 82) E 83) C 84) B 85) E 86) C Version 1
69
87) A 88) A 89) C 90) B 91) D 92) E 93) B 94) C 95) D 96) C 97) D 98) A 99) B 100) E 101) E 102) B 103) D 104) B 105) E 106) A 107) C 108) C 109) B 110) A 111) E 112) D 113) C 114) E 115) A 116) D Version 1
70
117) B 118) E 119) B 120) A 121) D 122) E 123) D 124) B 125) A 126) C 127) A 128) C 129) A 130) B 131) D 132) E 133) C 134) B 135) D 136) C 137) B 138) A 139) E 140) A 141) C 142) B 143) A 144) E 145) E 146) C Version 1
71
147) B 148) E 149) A 150) B 151) D 152) A 153) C 154) C 155) A 156) B 157) E 158) D 159) A 160) A 161) D 162) B 163) D 164) A 165) B 166) B 167) A 168) C 169) E 170) C 171) E 172) A 173) E 174) D
Version 1
72
CHAPTER 5 1)
Women make what percentage of new-car buying decisions? A) 15 percent B) 32 percent C) 45 percent D) 62 percent E) 85 percent
2)
Women influence what percentage of new-car buying decisions? A) 15 percent B) 20 percent C) 45 percent D) 68 percent E) 85 percent
3) Enlightened carmakers have hired women designers, engineers, and marketing executives to better understand the way women decide to buy new cars. They have learned that A) meeting the expectations of men during the new-car purchasing process is more difficult than meeting those of women. B) men make the majority of new-car purchasing decisions. C) women look for features that make accidents survivable while men favor those that prevent them. D) women care more about reliability than men. E) men care more about price than women.
4)
Which statement about how women buy new cars today is most accurate?
Version 1
1
A) Women have definite likes or dislikes when buying a new car, but they don't feel comfortable expressing their opinions. B) Most women actually enjoy the price negotiation process. C) The issue of "speed" is an important factor to men but not really important to women. D) Women do more pre-purchase research and visit more dealerships than men. E) Women care more about exterior styles and lines and men are more concerned with cargo space and gas mileage.
5)
Which statement about how women buy cars today is most accurate?
A) Women are more interested in interior design and finishes, while men care more about a car’s exterior lines. B) Women have definite likes or dislikes when buying a car, but they don't feel comfortable expressing their opinions. C) When it comes to the actual purchase process, women are more adept negotiators than men. D) Women care more about engine capabilities, and men are more concerned with cargo space and gas mileage. E) Women usually shop one dealership before making a decision and men usually shop three.
6) Some automobile dealerships employ a nonnegotiable or no-haggle price strategy to sell their cars. A customer who wants to buy a new or used car would pay the posted price. These dealers probably adopt this pricing policy because A) the industry is discussing the abandonment of self-regulation practices. B) women have an intense dislike of price negotiation, yet still want to buy a car. C) many recent immigrants into the United States are not accustomed to negotiation. D) women distrust men in general and car salesmen in particular. E) a slow-growing economy practically guarantees that negotiations would produce negative profit per vehicle.
Version 1
2
7) The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after, are referred to as A) purchase intentions. B) market research. C) consumer behavior. D) consumer conduct. E) purchase protocols.
8)
Consumer behavior refers to
A) the aspects of a consumer's decision-making processes that cannot be measured. B) the actions a person takes in purchasing and using products and services, including the mental and social processes before and after. C) the five stages a buyer passes through in making choices about which product and service to investigate, purchase, and consume. D) the mental and social processes related to purchasing that are innate in a person from birth. E) those purchasing behaviors that result from (1) repeated experience and (2) reasoning.
9) Consumer behavior includes the actions a person takes in purchasing services and using products and services, including the A) physical effort spent on them. B) financial limitations one must overcome to accomplish them. C) mental and social processes that come before and after. D) emotional processes that occur during them. E) cognitive and attitudinal processes that must be learned to complete them.
Version 1
3
10) The five stages a buyer passes through in making choices about which products and services to buy is called the A) information sorting process. B) purchase decision process. C) alternative evaluation process. D) postpurchase behavior process. E) problem recognition process.
11) The initial stage in the consumer purchase decision process involves perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. What is this stage called? A) prepurchase behavior B) alternative evaluation C) purchase decision D) problem recognition E) information search
12)
There are five stages in the consumer purchase decision process. The first stage is A) information search. B) purchase decision. C) alternative evaluation. D) opportunity identification. E) problem recognition.
13) The second stage in the consumer purchase decision process involves gathering facts about possible choices, and may include internal and external sources. What is this stage called?
Version 1
4
A) postpurchase behavior B) alternative evaluation C) purchase decision D) problem recognition E) information search
14) After a problem has been recognized in the consumer purchase decision process, the consumer proceeds to the second stage known as A) information search. B) purchase decision. C) alternative evaluation. D) opportunity identification. E) problem recognition.
15) Scanning memory for previous experiences and also exploring the external environment represent which stage of the consumer purchase decision process? A) information search B) purchase decision C) alternative evaluation D) opportunity identification E) problem recognition
16) The third stage in the consumer purchase decision process involves appraising brands in the consideration set based on the important criteria (both objective and subjective) identified during the information search step. What is this stage called?
Version 1
5
A) postpurchase behavior B) alternative evaluation C) purchase decision D) problem recognition E) information search
17) There are five stages in the consumer purchase decision process. Immediately following the information search stage is A) preference development. B) purchase decision. C) alternative evaluation. D) opportunity testing. E) problem recognition.
18) The fourth stage in the consumer purchase decision process includes deciding from whom to buy and when to buy. What is this stage called? A) preference development B) prepurchase evaluation C) purchase decision D) problem recognition E) information search
19) The fifth stage in the consumer purchase decision process involves comparing the product or service purchased with one's expectations to determine the degree of satisfaction or dissatisfaction. What is this stage called?
Version 1
6
A) postpurchase behavior B) alternative evaluation C) purchase decision D) problem resolution E) information search
20)
There are five stages in the consumer purchase decision process. The last stage is A) information search. B) purchase decision. C) alternative evaluation. D) postpurchase behavior. E) problem resolution.
21)
In Figure 5-1, Box A represents which stage of the consumer purchase decision process?
A) purchase decision B) information search C) problem recognition D) alternative evaluation E) option identification
Version 1
7
22)
In Figure 5-1, B represents which stage of the consumer purchase decision process?
A) purchase decision B) information search C) problem recognition D) alternative evaluation E) financial consideration
23)
In Figure 5-1, C represents which stage of the consumer purchase decision process?
A) purchase decision B) information search C) problem recognition D) alternative evaluation E) financial consideration
24)
In Figure 5-1, D represents which stage of the consumer purchase decision process?
Version 1
8
A) purchase decision B) information search C) financial transaction D) alternative evaluation E) postpurchase behavior
25)
In Figure 5-1, E represents which stage of the consumer purchase decision process?
A) purchase decision B) information search C) financial transaction D) alternative evaluation E) postpurchase behavior
26) According to Figure 5-1, the point at which you would exchange money for a sandwich of corned beef on rye would be found in stage
A) A. B) B. C) C. D) D. E) E.
Version 1
9
27) During the consumer purchase decision process, an individual at the________Blank stage will perceive differences between his or her ideal and actual situations big enough to trigger a decision. A) problem recognition B) alternative evaluation C) cognitive dissonance D) information search E) postpurchase behavior
28) When Maricela looked in her closet and said, "I don't have anything to wear to the wedding next month," she was in which stage of the purchase decision process? A) problem recognition B) alternative evaluation C) cognitive dissonance D) routine response behavior E) prepurchase behavior
29) When Jake said, "My bike needs a tune-up before the ride on Saturday," he was in which stage of the consumer purchase decision process? A) purchase decision B) alternative evaluation C) information search D) problem recognition E) prepurchase behavior
Version 1
10
30) Kelsey goes shopping with a friend and notices her friend's trendy sandals. She thinks of her own sandals and the strap that recently broke and realizes she needs a new pair. In which stage of the consumer purchase decision process was Kelsey when she had this realization? A) information search B) problem recognition C) purchase behavior D) alternative evaluation E) prepurchase cognition
31) Glow Pets, from the makers of Pillow Pets, are a light-up pillow product designed for young children. The pillows are colorful animals that produce a soft light for 20 minutes at a time and were produced for children with a fear of the dark. The company aired ads on various TV programs showing children being comforted and sleeping restfully with a Glow Pet, making parents and kids alike desire such a situation. The content of the advertising's message most likely focuses on which stage of the consumer purchase decision process? A) problem recognition B) information search C) alternative evaluation D) purchase decision E) postpurchase behavior
32) Carlos plans to go for a run after his classes are over. As he is getting dressed, he notices that one of the seams is unravelling in his favorite shorts, and he thinks it is about time for new ones. In which stage of the consumer purchase decision process is Carlos at that moment? A) information search B) problem recognition C) purchase behavior D) alternative evaluation E) prepurchase cognition
Version 1
11
33) In marketing, advertisements or salespeople can activate a consumer's purchase decision process by A) creating a sense of irony or amusement. B) manipulating a customer's want into a need. C) promising product attributes that exceed the actual product potential. D) showing the shortcomings of competing (or currently owned) products. E) shifting the consumer's focus from internal search to external search.
34) Scanning your memory for previous experiences with products or brands occurs during which stage of the consumer purchase decision process? A) information search B) purchase decision C) alternative evaluation D) postpurchase behavior E) problem recognition
35) "Which brand of salad dressing does my mom buy?" would be a question asked during the________Blank stage in the consumer purchase decision process. A) problem recognition B) alternative evaluation C) information search D) purchase decision E) comparison
36) In which stage in the consumer purchase decision process would a consumer ask, "How much can I afford to spend on a new couch for my apartment?" Version 1
12
A) problem recognition B) alternative evaluation C) purchase decision D) evaluation E) information search
37) You have determined you want to buy an advanced hybrid vehicle, and a visit to Ford's website reveals that the Ford Fusion Hybrid SE uses hybrid fuel technology with the latest in lithium-ion battery technology. You are currently in which stage of the consumer purchase decision process for this type of automobile? A) problem recognition B) needs analysis C) purchase decision D) information search E) postpurchase evaluation
38)
Scanning your memory for previous experiences with products or brands is called A) problem recognition. B) alternative evaluation. C) cognitive dissonance. D) internal search. E) external search.
39) __________Blank in the consumer purchase decision process occurs when consumers scan their memories for previous experiences with products or brands.
Version 1
13
A) Problem recognition B) An internal search C) An external search D) A purchase task E) An antecedent state
40) When an elementary school teacher was returning to school in the fall, she wanted to buy markers and craft paper. She remembered the discount website she visited last year for her purchases, so she started there to see if the website still carried the items previously purchased. Which best describes the information search method used by the teacher? A) personal external source B) public external source C) market-dominated external source D) internal search E) market-dominated internal source
41) Casey's girlfriend will celebrate her birthday next week, so he needs to buy her a gift. He remembers the brand of purse that she carries and considers if she would like a new one by the same maker. This is an example of which part of the consumer purchase decision process? A) recollection search B) external search C) evaluative criteria D) antecedent states E) internal search
42) A mother of two toddlers is most likely to exclusively use an internal search during the decision process when purchasing
Version 1
14
A) a gift for her mother-in-law. B) a home security system. C) disposable diapers. D) a swing set. E) a weekend getaway.
43) Julie is an avid mystery reader and her coworker Tina has been borrowing some of her books over the summer. When Tina's birthday approaches, Julie wants to buy her a good mystery. When Julie was trying to recall her favorite mystery authors, she was engaged in A) problem recognition. B) an internal search. C) an external search. D) a purchase task. E) the precognition of an antecedent state.
44) ________Blank search for information is likely when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low. A) An external B) A cognitive C) An alternative D) An internal E) A postpurchase
45)
An external search for product information is likely to occur when
Version 1
15
A) the cost of gathering information is low. B) review of past experience provides adequate information. C) the risk of making a wrong purchase decision is low. D) the item is frequently purchased. E) the item is for personal use rather than for professional use.
46) Hadley wants to purchase a fitness tracker. She is unsure about what type will best suit her needs and work best with other products she owns. She has begun asking for advice from her friends and relatives. In addition, she has talked a couple of trainers at her gym and has looked at some online reviews. Hadley is engaging in A) problem recognition. B) an internal search. C) an external search. D) a purchase task. E) the creation of an antecedent state.
47) Nico wants to buy a new digital camera for his semester studying abroad, but he knows very little about cameras, having never owned one. As a result, he has begun asking for advice from friends and relatives. In addition, he has talked to salespeople at a Wolf camera shop and Best Buy and he has looked at some websites. Nico is engaging in A) problem recognition. B) an internal search. C) the purchase decision. D) an external search. E) the creation of an antecedent state.
48) Relatives, friends, and social networking sites that the consumer trusts are known as________Blank sources of external information.
Version 1
16
A) relational B) marketer-dominated C) personal D) stakeholder E) public
49) When conducting an information search in the purchase decision process, a consumer may use various product-rating organizations, government agencies, and TV consumer programs known as A) relational sources. B) marketer-dominated sources. C) personal sources. D) public sources. E) stakeholder sources.
50) ________Blank is an example of a public source of information consulted during an external search as part of the purchase decision process. A) People magazine advertising B) Consumer Reports magazine C) A salesperson at the Apple Store D) Your brother-in-law E) A point-of-purchase display at Target
51) Public sources of information for an external information search during the purchase decision process include which of these?
Version 1
17
A) advertisements B) sales personnel C) friends and relatives D) government agencies E) point-of-purchase displays
52) Sources of external information that originate with the sellers of products and services and include advertising, company websites, salespeople, and point-of-purchase displays in stores are referred to as A) relational sources. B) public sources. C) personal sources. D) stakeholder sources. E) marketer-dominated sources.
53) An example of a marketer-dominated source of information consulted during an external search is A) previous ownership of a product. B) a Better Business Bureau rating. C) a point-of-purchase display in a store. D) a consumer program on talk radio. E) your mother.
54) ________Blank would be considered marketer-dominated source of information discovered during an external search during the purchase decision process.
Version 1
18
A) Personal experience B) A salesperson C) A Federal Trade Commission report D) A coworker E) Consumer Reports magazine
55) All of these are examples of marketer-dominated sources of information consulted during an external searchexcept which? A) digital advertising B) point-of-purchase display C) Kelly Blue Book D) dedicated sales staff E) company website
56) Which stage in the consumer purchase decision process suggests criteria to use for the purchase, yields brand names that might meet the criteria, and develops consumer value perceptions? A) problem recognition B) information search C) alternative evaluation D) purchase decision E) postpurchase evaluation
57)
The alternative evaluation stage clarifies the problem for the consumer in part by
Version 1
19
A) creating expectations for particular products. B) proposing the type of purchase outlet. C) suggesting criteria to use for the purchase. D) minimizing cognitive dissonance. E) establishing a purchase timeline.
58) Sanaa recently made partner at her law firm, and she is rewarding herself with the purchase of a new car. She told a coworker, “The Volvo has nine airbags but the Cadillac drives so smoothly.” Sanaa is currently in which stage of the purchase decision process? A) problem recognition B) information search C) alternative evaluation D) purchase decision E) postpurchase evaluation
59) The objective and subjective attributes of a brand that consumers use to compare different products and brands are referred to as A) temporal states. B) antecedent states. C) information sources. D) evaluative criteria. E) the consideration set.
60)
Evaluative criteria refer to
Version 1
20
A) the objective and subjective attributes of a brand consumers use to compare different products and brands. B) those attributes of a brand that are based exclusively on objective criteria in order to make an unbiased purchase decision. C) those attributes of a brand that are based exclusively on subjective criteria in order to avoid postpurchase anxiety. D) the attributes of a product that a manufacturer wishes to promote to a specific target market. E) a list of required product attributes from which a customer will not waver regardless of additional incentives.
61)
Which statement concerning evaluative criteria is most accurate?
A) If the alternatives in a consideration set do not meet all of the requirements of the evaluative criteria, the entire decision process is quickly discontinued. B) Consumers often have several criteria for evaluating a single product. C) Evaluative criteria represent objective rather than subjective attributes. D) Evaluative criteria represent subjective rather than objective attributes. E) Ultimately, the most important evaluative criterion is price.
62) When purchasing a reusable water bottle, factors like durability, price, and temperature control that a consumer considers prior to purchase are called A) points of difference. B) informational alternatives. C) buying decision choices. D) evaluative criteria. E) consumer attributes.
Version 1
21
63) The Ford Fusion Hybrid SE uses hybrid fuel technology with the latest in lithium-ion battery technology to deliver more power, convenience, prestige, and fuel economy than nonhybrid cars. If a consumer used these attributes in evaluating this vehicle against others, the attributes would be considered A) points of difference. B) informational alternatives. C) evaluative criteria. D) competitive advantages. E) consumer attributes.
64) The group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware is referred to as the A) evaluative set. B) evolved set. C) consideration set. D) alternative selection group. E) aspiration group.
65)
A consideration set refers to
A) the group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. B) the group of generic brands that a consumer would reluctantly consider acceptable. C) the group of brands of which a consumer is aware. D) all possible competitive product substitutes that may satisfy a consumer's needs regardless of the product class. E) those product alternatives a consumer has considered, including those deemed unacceptable.
Version 1
22
66) The BMW StreetCarver is a $495 skateboard that features BMW's technology in its wheel suspension, which stabilizes the board's sleek design and allows for greater control around sharp curves. BMW wants its skateboard to be within the consideration set of potential skateboard buyers. In this case, it will most likely focus on A) reducing the postpurchase dissatisfaction that may result from purchasing its product. B) making sure its representatives attend sporting events such as ESPN's X-Games to get new product ideas. C) making appeals directed toward motivational ego needs. D) explaining the stability and control aspects of the StreetCarver in its advertising messages. E) creating personality profiles for skateboarders.
67) Figure 5-2 shows the recent ratings from an independent rating agency for selected smartphone brands and models. A number of factors are listed, such as retail price, audio quality, and camera quality. These factors are the typical ________Blank for smartphones.
Version 1
23
A) consideration sets B) evaluative criteria C) value propositions D) quality considerations E) core benefits
68) Figure 5-2 shows the recent ratings from an independent rating agency for selected smartphone brands and models. Each column shows a brand like Apple, OnePlus, LG, Motorola, and Samsung. These brands are referred to as the ________Blank when consumers use these smartphone ratings to evaluate the products.
A) consideration set B) evaluative criteria C) points of difference D) value brands E) core benefits
Version 1
24
69) Figure 5-2 shows the recent ratings from an independent rating agency for selected smartphone brands and models. Which smartphone should be chosen if you want a model that has above average battery life and superior camera quality?
A) Apple iPhone SE B) Samsung Galaxy A50 C) OnePlus 7T D) LG V40 ThinQ E) Moto Z4
70) Once a consumer has completed the alternative evaluation stage of the consumer purchase decision process, the two remaining choices are A) which product to buy and how to pay for it. B) whether to buy one or several if a BOGO deal is offered and how to pay for them. C) from whom to buy and when to buy. D) which product to buy and whether to tell others about the purchase. E) whether to buy in person or online and whether to tell others about the purchase.
Version 1
25
71)
All of these would impact your decision about when to buy an offeringexcept which? A) The manufacturer is currently offering a $25 rebate. B) You don't have the money now and don't get paid until Friday. C) The product is on sale. D) The store is closing in 10 minutes. E) The retailer's return policy is very lenient.
72) Charlie was standing outside his classroom talking on the phone when a friend heard him say, "Thank you for taking my call so quickly. I'd like to order the 64-gigabyte iPad Pro. I'll pick it up today at the Southdale Apple Store. Can I use the easy pay plan?" Charlie was in which stage of the consumer purchase decision process? A) problem recognition B) alternative evaluation C) information search D) purchase decision E) postpurchase evaluation
73) At the________Blank of the consumer purchase decision process, a consumer compares the product with personal expectations and is either satisfied or dissatisfied. A) problem recognition stage B) information search stage C) alternative evaluation stage D) purchase decision stage E) postpurchase stage
Version 1
26
74) Satisfaction or dissatisfaction during__________Blank most strongly influences consumer communications and repeat-purchase behavior. A) consideration set assessment B) prepurchase behavior C) evaluative criteria selection D) the postpurchase stage E) information search
75) Firms such as General Electric, Johnson & Johnson, Coca-Cola, and British Airways focus their attention on________Blank to maximize customer satisfaction and retention in part by offering training to handle complaints, answer questions, and solve consumer problems. A) value perception B) postpurchase behavior C) noncompetitive pricing D) comparison pricing E) prepurchase behavior
76) Claire has just told her best friend, "I'm so glad I bought the Samsung Galaxy S21 rather than those other smartphones I was considering. Streaming is so fast, and the battery stays charged forever." Which stage of the consumer purchase decision process does Claire's conversation identify? A) problem recognition B) information search C) alternative evaluation D) purchase decision E) postpurchase behavior
77)
Customer satisfaction is an important focus for marketers because
Version 1
27
A) marketing research is an expensive proposition; the fewer times it needs to be done, the better off the company is. B) the financial value of a satisfied, loyal customer over time can be significant. C) consumers are unable to assess it by themselves. D) attracting new customers is easier than keeping old ones. E) a 50 percent increase in customer retention can increase a company's profits by 5 percent.
78)
Firms such as GM and Frito-Lay have learned which marketing lesson? A) It is a lot easier to find new customers than to retain existing ones. B) According to research, it is equally costly to acquire new customers and retain existing
ones. C) Existing customers do not spend as much as new customers since the former like the old products rather than the new ones new customers like. D) The buying experience, customer satisfaction, and customer retention can increase a firm's profits. E) Unless a marketing promotion to retain customer loyalty can increase market share by at least 5 percent, it is not worth the expenditure.
79) The feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives is referred to as A) marketing angst. B) the temporal state. C) the dissociative state. D) selective perception. E) cognitive dissonance.
80)
Cognitive dissonance refers to
Version 1
28
A) feelings of guilt for purchasing a product or service that was not consistent with a consumer's moral or ethical beliefs. B) feelings of discomfort associated with purchasing something purely for the sake of prestige. C) the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives. D) feelings of discontent after a purchase has been made when the product fails to perform up to expectations. E) feelings of discontent before a purchase has been made when the customer finds out that he or she paid more for the product than necessary.
81) Rackspace U.S. Inc. is a web hosting company. If you want a website, you can buy Internet space as well as technical support and design services from the company. When current users are targeted with an ad explaining that its clients consider Rackspace "the risk-free host because it offers dedicated and helpful support any time day or night," Rackspace is most likely trying to A) identify its core values. B) reduce buyers' cognitive dissonance. C) simplify new buyers' evaluative criteria. D) produce a consideration set. E) evoke problem recognition.
82) You have just purchased an Amazon Fire 7 tablet device. After you receive it at your door, you brood about whether your choice was right or whether you should have bought a Microsoft Surface Go 2, for which you have seen many ads on social media. This is most likely an example of
Version 1
29
A) indecisiveness. B) cognitive dissonance. C) postpurchase stress. D) market anxiety. E) extended problem solving.
83) How would consumers who purchased a new and innovative Nike LeBron 18 basketball shoe for $185 try to reduce any cognitive dissonance they feel? A) Limit their information search to an internal one. B) Minimize problem-solving involvement. C) Read ads for the new basketball shoe even after the purchase has been made. D) Conceal the product purchase from others. E) If the shoe is comfortable and gives the requisite support, there will be no cognitive dissonance.
84) Stephan was excited about his newly purchased laptop. It had all the features he wanted and was very fast with a great display for his gaming. In addition, the $1,200 price tag was reasonable. The same day he took it out of the box, he saw an online special for a similar computer, on sale for only $1,000. Suddenly he began to doubt his purchase decision and worried that maybe he hadn't gotten such a good deal. Stephan was most likely experiencing A) limited problem solving. B) cognitive dissonance. C) selective discord. D) product conflict. E) product uncertainty.
Version 1
30
85) The personal, social, and economic significance of the purchase to the consumer, which is known as the level of________Blank, may cause him or her to skip or minimize one or more stages in the purchase decision process. A) aspiration B) cognitive dissonance C) motivation D) situational influences E) involvement
86)
In terms of consumer behavior, involvement refers to A) the external influences that affect a consumer's purchase. B) the personal, social, and economic significance of the purchase to the consumer. C) the level of difficulty involved in making a purchase. D) the total number of people involved in the actual exchange process. E) the time, energy, and personal investment that will be required to use a product.
87)
High-involvement purchases typically have which of these characteristics?
A) The item is inexpensive, widely available, or simple to use. B) The item is inexpensive, very safe to use, or purchased with great frequency. C) The item is expensive, new to the market, or recommended by influential personal sources. D) The item is expensive, can have serious personal consequences, or could reflect on one's social image. E) The item is inexpensive, new to the market, or is used for more than five years.
88) For high-involvement purchases, consumers typically do all of these followingexcept which?
Version 1
31
A) spend considerable time evaluating criteria for the consideration set B) participate in word-of-mouth communication C) evaluate a single product attribute, such as price D) consider many brands E) use both internal and external sources in information search
89) NetJets is a company that offers one-sixteenth or more ownership in a jet plane for a price beginning at $325,000. It gives purchasers privacy, convenience, and flexibility as well as saves them time since the plane is available within four hours unless it's booked by one of the other shareholders. This is most likely an example of a A) medium-involvement purchase that involves limited problem solving. B) high-involvement purchase that involves routine problem solving. C) high-involvement purchase that involves extended problem solving. D) low-involvement purchase that involves limited problem solving. E) low-involvement purchase that involves extended problem solving.
90)
Which product or service is an example of a low-involvement purchase? A) knee surgery B) a Trek bicycle C) membership into a local country club D) a vacation to the Poconos E) Bounty paper towels
91) Lexi wants to find the perfect gift for her older sister's college graduation. She started looking for the gift last month and expects to spend another couple of weeks finding a gift her sister will use and like. Lexi is engaging in
Version 1
32
A) routine problem solving. B) limited problem solving. C) extended problem solving. D) problem recognition. E) integrated problem solving.
92) In________Blank, consumers typically seek only a few information sources about several sellers and their brands, and they may identify and evaluate a moderate number of attributes for each brand that eventually will comprise the consideration set. A) limited problem solving B) extended problem solving C) short-term problem solving D) routine problem solving E) relational problem solving
93) Which problem-solving variation would likely be used for winter coats, desk chairs, movie tickets, or pressure cookers? A) routine response behavior B) limited problem solving C) extended problem solving D) simulated selection E) integrated problem solving
94) Which problem-solving variation would typically be used for blenders, a restaurant for lunch, or professional ball game tickets?
Version 1
33
A) routine response behavior B) extended problem solving C) simulated selection D) integrated problem solving E) limited problem solving
95) Elizabeth has decided to purchase a new electric juicer and plans to call a friend for the latest information about alternative brands. She is not concerned about where she buys it as long as she receives a very generous return policy should anything go wrong. In making her decision, Elizabeth will engage in which problem-solving variation? A) limited problem solving B) extended problem solving C) routine problem solving D) alternative problem solving E) integrated problem solving
96) Danilo has decided to purchase a new video game console, not having owned one before. He calls his gamer friends for recommendations about alternative brands and options. He has few concerns about the purchase but wants a quick rundown of the most important aspects to consider. In making his decision, Danilo seems likely to engage in which problem-solving variation? A) limited problem solving B) extended problem solving C) routine problem solving D) alternative problem solving E) integrated problem solving
Version 1
34
97) Consumers spend little time and effort evaluating alternatives in the purchase of flour and soap. The consumer purchase decision process for such staples involves________Blank, which is virtually a habit and typifies low-involvement decision making. A) limited problem solving B) extended problem solving C) situational problem solving D) rational problem solving E) routine problem solving
98) Which problem-solving variation would normally be used to purchase items such as crackers or laundry detergent? A) limited problem solving B) extended problem solving C) routine problem solving D) situational problem solving E) integrated problem solving
99) Dina manages a three-story apartment building near campus. When a tenant recently moved out, she changed the locks and had another set of keys made at Home Depot as she does every time a tenant moves. This is an example of A) limited problem solving. B) extended problem solving. C) situational problem solving. D) routine problem solving. E) integrated problem solving.
Version 1
35
100) Between classes, many college students stop at conveniently located vending machines for their favorite snacks and drinks. Their choices are generally made quickly and with little or no effort to consider alternative product offerings. These students are most likely involved in________Blank problem solving purchase situations. A) limited B) routine C) extensive D) intensive E) unlimited
101) In Figure 5-3, column A represents which of these in terms of consumer involvement and product knowledge?
A) consideration set B) routine problem solving C) limited problem solving D) extended problem solving E) integrated problem solving
Version 1
36
102) In Figure 5-3, column B represents which of these in terms of consumer involvement and product knowledge?
A) intermediate problem solving B) routine problem solving C) limited problem solving D) extended problem solving E) integrated problem solving
Version 1
37
103) In Figure 5-3, column C represents which of these in terms of consumer involvement and product knowledge?
A) routine problem solving B) limited problem solving C) nominal problem solving D) restricted problem solving E) integrated problem solving
104) Which of these is a strategy for a market leader (rather than a market challenger) when marketing a low-involvement product? A) Use sales promotion such as free samples, coupons, and rebates to encourage trial of the brand. B) Link the brand attributes with high-involvement issues. C) Use Internet search engines such as Google to assist buyers. D) Use advertising messages that focus on getting the brand into a consumer's consideration set. E) Use repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice.
Version 1
38
105) The purchase of bottled sparkling water is a low-involvement purchase. How can a market leader such as Perrier keep people buying its brand instead of one of the numerous other brands displayed on retailers' shelves? A) Avoid Perrier brand stockouts on retailers' shelves. B) Make the purchase decision a high-involvement one. C) Offer coupons for Perrier bottled water. D) Convince retailers to offer only Perrier water. E) Denigrate its competition.
106) Which of these is more essential as a strategy for a low-involvement offering than a highinvolvement one? A) Use personal selling to provide consumers with information. B) Use social media to create online experiences for the brand. C) Avoid stockout situations so that buyers don't substitute a competing brand. D) Optimize Internet search engines such as Google to assist buyers during information search. E) Run ads to provide consumers with information.
107) Purchase task, social surroundings, physical surroundings, temporal effects, and antecedent states can have an impact on a consumer's purchase decision process. These are referred to as A) marketing mix influences. B) situational influences. C) psychological influences. D) sociocultural influences. E) evaluative criteria.
Version 1
39
108)
Situational influences refer to
A) the five aspects of the purchase situation that impact the consumer purchase decision process: purchase task, social surroundings, physical surroundings, temporal effects, and antecedent states. B) the temporary impediments to a consumer's purchase decision. C) psychological concepts that are useful for interpreting buying processes and directing marketing efforts. D) the feelings of postpurchase anxiety that can arise from a number of different factors including social surroundings, physical surroundings, psychological effects, and precedent states. E) both the objective and subjective attributes a consumer uses to compare different products and brands.
109) All of these are situational influences that can have an impact on a consumer's purchase decision processexcept which? A) physical surroundings B) purchase task C) temporal effects D) consumer involvement E) antecedent states
110) Five situational influences have an impact on a consumer's purchase decision process. One of these is A) competitive offerings. B) core values. C) perception. D) consumer socialization. E) antecedent states.
Version 1
40
111) Louie is selecting a bottle of wine and passes up his usual choice for a more expensive one since he is taking it to a dinner party later that day. This is an example of which situational influence? A) purchase task B) social surroundings C) physical surroundings D) temporal effects E) antecedent states
112)
Consumers accompanied by children A) purchase twice as much as they normally would if shopping with other adults. B) purchase about 40 percent more than when shopping alone. C) purchase less than half of what they would have if shopping with their spouses. D) are usually unable to complete nonessential shopping tasks. E) avoid purchases of household and entertainment offerings.
113) Three teenage girls spent an hour at a store trying on various outfits, looking at possible combinations, and asking each other, "How do you think this looks on me?" This situation is most closely related to which situational influence? A) purchase task B) social surroundings C) physical surroundings D) temporal effects E) antecedent states
Version 1
41
114) All of these are part of the physical surroundings of a retail store that can influence how purchase decisionsexcept which? A) decor B) crowding C) lighting D) music E) time of day
115) The crowded aisles in retail stores at holiday time may cause some shoppers to lose patience and decide on their purchases with far less thought than they otherwise would. This situation is most closely related to which situational influence? A) purchase task B) social surroundings C) physical surroundings D) temporal effects E) spatial surroundings
116)
Temporal effects include the A) purpose of the purchase. B) presence of other people. C) time of day. D) crowding in retail stores. E) consumer's mood while engaged in the purchase.
117) Tracy stopped by a vending machine at 10:00 a.m. Even though she wanted to get an energy drink, she thought it was too early for that and chose a bottled juice instead. This purchase is an example of which situational influence?
Version 1
42
A) purchase task B) social surroundings C) physical surroundings D) temporal effects E) antecedent states
118) Andres only has 30 minutes for lunch, so he typically goes somewhere within a block or two of his building and is careful about what he orders. This is an example of which situational influence in the purchase decision process? A) purchase task B) social surroundings C) physical surroundings D) temporal effects E) antecedent states
119)
Consumers with credit cards
A) are less influenced by physical surrounding than those who pay by cash or check. B) are influenced to a certain extent by a retailer's physical surroundings to buy more with their credit cards than with cash. C) purchase more than those who purchase with cash or debit cards. D) purchase less because statistically these shoppers have higher time constraints. E) purchase less when accompanied by children than when in the company of other adults.
120) The American Floral Council used an ad that showed three flower arrangements varying in size from a single rose to a very large and elaborate arrangement. The caption simply read, "Just how mad is she?" This ad relies on which situational influence for its effectiveness?
Version 1
43
A) purchase task B) social surroundings C) physical surroundings D) psychological effects E) antecedent states
121) Consumer________Blank are a marketer's product, service, or brand contacts with a consumer from start-to-finish in the purchase decision process. A) interactions B) situations C) touchpoints D) integrations E) metrics
122)
Consumer touchpoints are
A) a shopper's emotion-based motivations which if triggered will spur a purchase. B) situations in which a consumer is physically in contact with a product, such as during trial in a store or at home. C) a marketer's product, service, or brand contacts with a consumer from start-to-finish in the purchase decision process. D) a visual representation of a brand's offerings and how they align with various target markets. E) measures of a consumer's attraction to a product or brand throughout the consumer decision process.
123)
A consumer journey map is a visual representation of
Version 1
44
A) a shopper's emotion-based motivations which if triggered will spur a purchase. B) situations in which a consumer is physically in contact with a product, such as during trial in a store or at home. C) exchanges for a particular product or with a particular brand, including frequency and volume in dollars or units. D) a brand's offerings and how they align with various target markets. E) all of the touchpoints for a consumer who comes into contact with a company's products, services, or brands before, during, and after a purchase.
Version 1
45
124) In Figure 5-5, A represents the ________Blank influences that can affect the consumer purchase decision process.
A) economic B) situational C) psychological D) sociocultural E) marketing mix
Version 1
46
125) In Figure 5-5, B represents the ________Blank influences that can affect the consumer purchase decision process.
Version 1
47
A) economic B) situational C) environmental D) marketing mix E) market-dominated
Version 1
48
126) In Figure 5-5, C represents the ________Blank influences that can affect the consumer purchase decision process.
A) sociocultural B) economic C) environmental D) situational E) market-dominated
Version 1
49
127) In Figure 5-5, D represents the ________Blank influences that can affect the consumer purchase decision process.
Version 1
50
A) economic B) situational C) psychological D) sociocultural E) marketing mix
Version 1
51
128)
In Figure 5-5, E represents the
A) consumer purchase decision process. B) consumer communication model. C) marketing research process. D) marketing program. E) consumption strategy model.
Version 1
52
129) The________Blank is influenced by situational, psychological, sociocultural, and marketing mix influences. A) consumer purchase decision process B) organizational buying decision process C) marketing research process D) marketing program E) consumer socialization process
130) Sociocultural influences that affect the consumer purchase decision process include all of theseexcept which? A) personal influence B) reference groups C) family D) culture and subculture E) values, beliefs, and attitudes
131)
The energizing force that stimulates behavior to satisfy a need is referred to as A) a personality. B) an antecedent state. C) a motivation. D) cognitive dissonance. E) perception.
132)
Motivation is
Version 1
53
A) the stimulus required to cause a consumer to do something uncharacteristic of him- or herself. B) the energizing force that stimulates behavior to satisfy a consumer need. C) a person's consistent behaviors or responses to recurring situations. D) the way people see themselves and the way they believe others see them. E) a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
133) Which list presents the Maslow hierarchy of needs in its correct order, beginning with the lowest level need and moving up to the highest level need? A) personal, social, physiological, psychological, and safety B) physiological, safety, social, personal, and self-actualization C) safety, physiological, safety, self-actualization, and personal D) self-actualization, social, safety, physiological, and personal E) safety, personal, self-actualization, physiological, and social
134) In the Maslow hierarchy of needs, those needs that are basic to survival and must be satisfied first are referred to as A) physiological needs. B) safety needs. C) social needs. D) personal needs. E) self-actualization needs.
135) Water, food, and shelter would be considered________Blank needs in the Maslow hierarchy of needs.
Version 1
54
A) psychological B) safety C) social D) personal E) physiological
136) In the Maslow hierarchy of needs,________Blank needs involve self-preservation as well as physical and financial well-being. A) physiological B) social C) personal D) safety E) self-actualization
137) In the Maslow hierarchy of needs, a health insurance policy would satisfy a________Blank need. A) physiological B) safety C) social D) personal E) self-actualization
138) An ad for Brink's Home Security shows a woman using her treadmill, unaware that would-be robbers are just outside. They break down the front door, are startled by a loud alarm, and then run away. The woman answers an immediate call from the security company, and a representative reassures her that help is on the way. The ad is intended to appeal to which level of Maslow's hierarchy of needs?
Version 1
55
A) physiological needs B) safety needs C) social needs D) personal needs E) self-actualization needs
139) In the Maslow hierarchy of needs, love and friendship are referred to as________Blank needs. A) physiological B) safety C) social D) personal E) self-actualization
140) Harmony claims to be the world's most trusted online dating website. Its appeal is to satisfy consumers'________Blank needs in the Maslow hierarchy of needs. A) physiological B) personal C) interaction D) social E) psychological
141) In the Maslow hierarchy of needs, achievement, status, prestige, and self-respect are referred to as________Blank needs.
Version 1
56
A) physiological B) safety C) personal D) social E) self-actualization
142) Carrying and using a high-end credit card like an American Express Centurion Card would satisfy needs at what level in the Maslow hierarchy of needs? A) physiological B) personal C) interaction D) social E) psychological
143)
In the Maslow hierarchy of needs, those needs involving personal fulfillment are called A) physiological. B) safety. C) social. D) personal. E) self-actualization.
144) In the Maslow hierarchy of needs, the most basic needs are physiological, followed by safety, social, and personal. What category of needs is at the highest level?
Version 1
57
A) intellectual needs B) emotional needs C) self-actualization needs D) religious needs E) psychological needs
145) An Acura automobile ad is headlined by a quote from Henry David Thoreau, "Go in the Direction of Your Dreams." This ad is most likely to appeal to consumers'________Blank needs in the Maslow hierarchy of needs. A) physiological B) personal C) psychological D) social E) self-actualization
146) The long-running U.S. Army recruiting advertisement that invited enlistees to "Be All You Can Be" appeals to which level of Maslow's hierarchy of needs? A) physiological needs B) self-actualization needs C) safety needs D) social needs E) personal needs
Version 1
58
147)
Figure 5-6 depicts the Maslow
A) motivation for preservation. B) products pyramid. C) hierarchy of needs. D) ladder of effects. E) psychosocial influences.
Version 1
59
148)
According to Figure 5-6, A defines what level in the Maslow hierarchy of needs?
A) self-actualization B) safety C) social D) personal E) physiological
Version 1
60
149)
According to Figure 5-6, B defines what level in the Maslow hierarchy of needs?
A) physiological B) safety C) self-actualization D) personal E) social
Version 1
61
150)
According to Figure 5-6, C defines what level in the Maslow hierarchy of needs?
A) physiological B) personal C) social D) safety E) self-actualization
Version 1
62
151)
According to Figure 5-6, D defines what level in the Maslow hierarchy of needs?
A) physiological B) safety C) self-actualization D) personal E) social
Version 1
63
152)
According to Figure 5-6, E defines what level in the Maslow hierarchy of needs?
A) self-actualization B) physiological C) social D) personal E) safety
153) Personal fulfillment in the Maslow hierarchy of needs is an example of the highest-order needs referred to as Version 1
64
A) physiological needs. B) social needs. C) safety needs. D) personal needs. E) self-actualization needs.
154)
Respect in the Maslow hierarchy of needs is an example of a________Blank need. A) self-actualization B) personal C) social D) safety E) physiological
155)
Love in the Maslow hierarchy of needs is an example of a________Blank need. A) self-actualization B) personal C) social D) safety E) physiological
156)
Shelter in the Maslow hierarchy of needs is an example of a________Blank need. A) self-actualization B) personal C) social D) safety E) physiological
Version 1
65
157)
The Maslow________Blank is based on the idea that motivation comes from a need. A) motivation for preservation B) products pyramid C) hierarchy of needs D) ladder of effects E) psychosocial influences
158)
A college education would satisfy needs at what level of the Maslow hierarchy? A) physiological B) self-actualization C) personal D) safety E) social
159)
Staying at a luxury hotel would satisfy needs at what two levels of the Maslow hierarchy? A) physiological and self-actualization B) self-actualization and social C) personal and physiological D) safety and social E) social and personal
160)
Chanel No. 5 fragrances would satisfy needs at what level of the Maslow hierarchy?
Version 1
66
A) physiological B) self-actualization C) personal D) safety E) social
161)
A bike helmet would satisfy needs at what level of the Maslow hierarchy? A) physiological B) self-actualization C) personal D) safety E) social
162)
A tent would satisfy needs at what level of the Maslow hierarchy? A) physiological B) self-actualization C) personal D) safety E) social
163)
A person's consistent behaviors or responses to recurring situations is referred to as A) motivation. B) core values. C) culture. D) perception. E) personality.
Version 1
67
164)
Personality refers to
A) the attitudes that determine how people spend their time and resources and what they consider important. B) the way people see themselves and others. C) the process by which an individual selects, organizes, and interprets information to create a meaningful ideal self. D) a person's consistent behaviors or responses to recurring situations. E) those qualities that either attract or repel other members of a person's personal, social, or professional environment.
165)
Which statement about personality is most accurate?
A) Personality is dynamic and typically changes several times as a person matures. B) Most personality traits are inherited or formed at an early age. C) Personality is the energizing force that makes consumer behavior purposeful. D) Most personality traits are formed during adulthood and don't change thereafter. E) The personality trait known as introversion has been associated with impulsive buying.
166) a(n)
An enduring characteristic within a person or in relationships with others is referred to as
A) key trait. B) persona. C) self-concept. D) core value. E) ideal self.
Version 1
68
167) Extroversion and assertiveness are________Blank that have implications for a consumer's purchasing behavior. A) personality traits B) personas C) self-concepts D) core values E) needs
168)
The way people see themselves and the way they believe others see them is referred to as A) self-evaluation. B) self-concept. C) self-actualization. D) individualized perception. E) personal perception.
169)
Self-concept is A) the degree to which a person is influenced by situational influences. B) the need for personal fulfillment. C) the way people see themselves and the way they believe others see them. D) the degree to which a person trusts his or her own judgment in a purchase situation. E) the degree to which a person is influenced by psychological influences.
170)
Marketers recognize that people have an actual self-concept and
Version 1
69
A) a persona determined by their peers. B) a persona determined by psychology. C) an abstract self-concept. D) an ideal self-concept. E) a deconstructed self-concept.
171) When the state of Virginia touts the slogan "Virginia is for Lovers," it is trying to appeal to people's________Blank in order to attract them as potential residents, part of its workforce, or vacationers. A) self-concept B) individualized perception C) self-evaluation D) self-actualization E) personal perception
172) The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world is referred to as A) motivation. B) attitude formation. C) learning. D) perception. E) a self-concept.
173)
Perception refers to
Version 1
70
A) a person's consistent behaviors or responses to recurring situations. B) a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. C) the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. D) seeing or hearing messages without being aware of them. E) the way people see themselves and the way they believe others see them.
174) Differences in________Blank cause one person that sees a Porsche to interpret it as mark of achievement, while another sees it as ostentatious. A) motivation B) attitude formation C) learning D) perception E) self-concept
175)
A filtering of exposure, comprehension, and retention is called A) selective attention. B) selective perception. C) selective intuition. D) selective retention. E) stimulus discrimination.
176) Because the average consumer operates in a complex environment, the human brain attempts to organize and interpret information with a process referred to as
Version 1
71
A) selective retention. B) selective identification. C) selective exposure. D) selective perception. E) stimulus discrimination.
177) A palindrome is a word or phrase that reads the same whether read from the right or from the left (e.g., madam). Originally, Marshall had never recalled hearing the term. However, when he read about palindromes for his English class, he saw three examples of the term within a matter of days. This is most likely the result of A) selective retention. B) selective identification. C) selective intuition. D) stimulus discrimination. E) selective perception.
178) The tendency to pay attention to messages consistent with one's attitudes and beliefs and to ignore messages that are inconsistent with them is referred to as A) selective retention. B) selective comprehension. C) selective exposure. D) selective perception. E) stimulus discrimination.
179) ________Blank often occurs in the postpurchase stage of the consumer decision process, when consumers notice and read advertisements for the brand they just bought as evidence to support their decision.
Version 1
72
A) Selective retention B) Selective comprehension C) Selective exposure D) Selective perception E) Stimulus discrimination
180) Because Marla was so strongly committed to a fat-free diet, she did not bother to read a recent report by the New England Journal of Medicine suggesting that some fat in our diet is healthy. The report was on CNN.com, which Marla browses daily, but the headline did not appeal to her as the result of A) selective retention. B) selective comprehension. C) selective exposure. D) selective perception. E) stimulus discrimination.
181) to as
Interpreting information so that it is consistent with one's attitudes and beliefs is referred
A) selective retention. B) selective comprehension. C) selective exposure. D) selective analysis. E) stimulus discrimination.
Version 1
73
182) Prexa was offended by the brand name of a new product for women. She believed the name of the product was demeaning and that it reflected a negative attitude of the manufacturer toward women in general. Although this may simply be the result of________Blank because Prexa is a women's rights advocate, if other women interpreted the name choice the same way, it is likely this product would fail. A) selective retention B) selective comprehension C) selective exposure D) selective analysis E) stimulus discrimination
183) As a result of________Blank, consumers do not remember all the information they see, read, or hear, even minutes after exposure to it. A) selective retention B) selective comprehension C) selective exposure D) selective perception E) subliminal discrimination
184) Selective retention most negatively impacts which stage of the consumer purchase decision process? A) information search B) purchase decision C) alternative evaluation D) postpurchase behavior E) problem recognition
185)
Retailers can reduce problems associated with selective retention by
Version 1
74
A) hiring well-known celebrities to sponsor their products. B) adding more end-aisle and other point-of-purchase displays throughout the store. C) providing brochures for consumers to take home. D) adopting advertising campaigns that use bright colors and a new selection of popular background music. E) offering extended service warranties.
186) If you read the chapters from your marketing text the night before this test and still could not remember several of the definitions for marketing terms, you may be experiencing A) selective retention. B) selective comprehension. C) selective exposure. D) selective perception. E) subliminal perception.
187)
The process of seeing or hearing messages without being aware of them is called A) selective retention. B) subliminal perception. C) selective perception. D) selective attention. E) indifference.
188)
Subliminal perception is
Version 1
75
A) the process of seeing or hearing messages without being aware of them. B) a person's innate ability to read nonverbal cues such as body language and facial expressions. C) the ability of a person to understand the allegorical meanings behind words, sentences, or paragraphs communicated in writing or speech. D) the process of being brainwashed to the point of acting in a way that is contrary to or inconsistent with one's normal behavior. E) the inability of a person to communicate due to lack of background knowledge or experience.
189) A movie theater owner claimed that he embedded brief messages during trailers before showing the feature film. The messages, which supposedly flashed on the screen for such a short time that moviegoers were not consciously aware of them, urged consumers to "Drink Coke" and to "Eat Popcorn," encouraging them to visit the snack lobby. Research has shown what about such messages? A) Selective perception overrides advertising messages. B) Selective exposure is difficult for marketers to surmount. C) Subliminal messages have limited effects on behavior. D) Subliminal perception enables marketers to motivate consumers to take an action. E) Subliminal messages were deemed illegal by the Federal Trade Commission at the time these were shown in the movie theater.
190)
Which statement about subliminal perception is most accurate?
Version 1
76
A) The Federal Communications Commission (FCC) believes that subliminal perception can be effective with a large majority of consumers. B) Subliminal messages are illegal in the United States. C) Subliminal messages are more effective now due to the advances in computergenerated images in movies and TV programs. D) About half of U.S. consumers think that subliminal messages can cause them to buy products they don't want. E) The use of subliminal messaging is monitored by the Better Business Bureau.
191) The bookThe Secret Sales Pitch: An Overview of Subliminal Advertising is about subliminal messages, which reflect what kind of potential influence on the consumer decisionmaking process? A) sociocultural B) situational C) psychological D) acculturational E) attitudinal
192) The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences is referred to as A) a negative antecedent state. B) perceived risk. C) temporal uncertainty. D) cognitive dissonance. E) a positive antecedent state.
193)
Perceived risk is
Version 1
77
A) an unmerited fear of being taken advantage of in an exchange situation. B) the feeling of postpurchase psychological tension or anxiety that consumers may experience when faced with two or more highly attractive alternatives. C) the degree to which a seller is willing to make an exchange based upon a customer's creditworthiness. D) the personal, social, and economic significance of the purchase to the consumer. E) the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.
194) When purchasing a product, the fear of physical harm, a large financial outlay required to buy it, fear of poor product performance, and fear of disapproval from friends can all contribute to A) consumer angst. B) cognitive dissonance. C) purchase anxiety. D) perceived risk. E) consumer cynicism.
195) All of these marketing tactics are designed to reduce consumers' perceived risk and encourage purchasesexcept which? A) securing endorsements from influential people B) providing warranties and guarantees C) providing free trials of the product D) giving extensive usage instructions E) using subliminal advertising
196) When Clorox uses the Good Housekeeping Seal for its Fresh Step cat litter, its strategy is to reduce a consumer's________Blank and encourage purchases.
Version 1
78
A) consumer angst B) cognitive dissonance C) perceived risk D) purchase anxiety E) consumer cynicism
197) When Kia Motors offered a 10-year, 100,000-mile warranty for its Kia Soul automobile, its strategy was to reduce consumers'________Blank and encourage purchases. A) behavioral learning B) cognitive learning C) brand loyalty D) perceived risk E) rational dissonance
198) Kendall was excited to begin her new job after she graduated from college. Which purchase would have the greatest perceived risk for her the day before she begins the job? A) a subscription toThe Wall Street Journal B) an outfit for her first day C) a new coffeemaker D) flowers to decorate her new apartment E) running shoes
199)
Those behaviors that result from repeated experience and reasoning are referred to as
Version 1
79
A) psychosocial edification. B) acculturation. C) attitudinal identification. D) wisdom. E) learning.
200)
Learning refers to
A) content that has been transferred from short-term to long-term memory. B) those behaviors that result from repeated experience and reasoning. C) the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. D) a consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people. E) a predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
201) The process of developing automatic responses to a situation built up through repeated exposure to it is referred to as A) perceptual learning. B) retentive learning. C) functional learning. D) motivated learning. E) behavioral learning.
202) All of these variables are central to how consumers learn from repeated experienceexcept which?
Version 1
80
A) purchase B) reinforcement C) response D) drive E) cue
203) You are sleepy before your 8 a.m. class and you notice the Starbucks on the walk to school. You stop for a drink and purchase something new that you really enjoy. The next day you do the same, and soon this has become a habit. This process is an example of A) cognitive learning. B) the scientific method. C) behavioral learning. D) attitude formation. E) cognitive dissonance.
204)
In behavioral learning, a need that moves an individual to action is a(n) A) drive. B) cue. C) attitude. D) response. E) reinforcement.
205) One evening while watching Hulu, your stomach growls. You see an ad for Jimmy John’s. You walk to the shop and buy a sandwich, which tastes great. In terms of behavioral learning, your hunger is a
Version 1
81
A) reinforcement. B) cue. C) response. D) prompt. E) drive.
206) In behavioral learning, a(n)________Blank is a stimulus or symbol perceived by consumers. A) drive B) cue C) attitude D) response E) reinforcement
207) You need to buy a gift for a young cousin's birthday. You go to the mall and see a girl wearing a Hello Kitty T-shirt. You remember there is a store in the mall with a lot of Hello Kitty merchandise so you go there and buy a little backpack. When you give it to your cousin, she is very excited. In terms of behavioral learning, seeing the girl with the Hello Kitty shirt was a A) drive. B) reinforcement. C) cue. D) response. E) prompt.
208) In behavioral learning, a________Blank is the action taken by a consumer to satisfy a drive.
Version 1
82
A) cue B) demotivator C) motivator D) response E) stimulus
209) While posting photos on Instagram, your stomach growls. You see an ad for Panera. You walk to Panera and buy a sandwich, which tastes great. In terms of behavioral learning, walking to the restaurant and buying a sandwich is a A) drive. B) response. C) reinforcement. D) cue. E) prompt.
210) You need to buy a gift for a young cousin's birthday. At the mall you see a girl wearing a Hello Kitty T-shirt. You remember there is a store nearby with a lot of Hello Kitty merchandise so you go there and buy a little backpack. When you give it to your cousin, she is very excited. In terms of behavioral learning, your purchase at the Hello Kitty store was a A) drive. B) response. C) reinforcement. D) cue. E) prompt.
211)
In behavioral learning, a________Blank is the reward that is given to a consumer.
Version 1
83
A) cue B) stimulus C) motivator D) response E) reinforcement
212) If a consumer tries a new coffee drink at Starbucks and hates it, which variable of behavioral learning has been ineffective? A) reinforcement B) achievement C) drive D) cue E) response
213) ________Blank occurs when a response elicited by one stimulus (cue) is generalized to another stimulus. Using the same brand name for different products is an application of this concept. A) Selective comprehension B) Selective retention C) Stimulus generalization D) Stimulus discrimination E) Routine problem solving
214) If McNeil Consumer Healthcare uses the same brand name for different products such as Tylenol Cold & Flu and Tylenol P.M. based on behavioral learning theory, this strategy is an example of
Version 1
84
A) stimulus generalization. B) selective comprehension. C) selective retention. D) stimulus discrimination. E) routine problem solving.
215)
Which of these is a concept from behavioral learning theory that marketers use? A) selective comprehension B) selective retention C) stimulus generalization D) cognitive dissonance E) routine problem solving
216)
A person's ability to perceive differences in stimuli is referred to as A) selective comprehension. B) selective retention. C) stimulus generalization. D) stimulus discrimination. E) routine problem solving.
217)
Consumers' ability to perceive taste differences in chocolate bars is an example of A) cognitive dissonance. B) stimulus discrimination. C) selective retention. D) selective comprehension. E) stimulus generalization.
Version 1
85
218) Elsa is disappointed that she can really taste the difference between a fat-free cheese she purchased and those with regular fat content that she usually buys. Elsa is exhibiting A) cognitive dissonance. B) selective retention. C) stimulus discrimination. D) selective comprehension. E) stimulus generalization.
219) Edison noticed that prices at a new video game rental website were lower than those at most of the other gaming websites or retail stores such as Game Stop. He is exhibiting A) cognitive dissonance. B) selective retention. C) selective comprehension. D) stimulus discrimination. E) stimulus generalization.
220) Comparative advertising, in which one brand is compared to another, is intended to cause consumers to perceive differences between the products featured in the advertising. Marketers who employ comparative advertising are trying to use________Blank to make consumers believe that their products are better than competitors' offerings. A) cognitive dissonance B) selective retention C) selective comprehension D) stimulus generalization E) stimulus discrimination
Version 1
86
221) Consumers can learn through thinking, reasoning, and mental problem solving without direct experience, which is called A) stimulus discrimination. B) cognitive learning. C) attitudinal learning. D) stimulus generalization. E) behavioral learning.
222) Making connections between two or more ideas or observing the outcomes of others' behaviors and adjusting one's own behavior accordingly are examples of what type of learning? A) stimulus discrimination B) cognitive learning C) attitudinal learning D) stimulus generalization E) behavioral learning
223) When General Mills repeatedly advertises that a cake baked from a Betty Crocker mix tastes just like homemade, it is influencing which type of learning? A) stimulus discrimination B) brand loyalty C) cognitive learning D) stimulus generalization E) behavioral learning
224) Advertising explains that the drug Plavix works by preventing plaque buildup in arteries that can cause heart attack and stroke. This is an example of
Version 1
87
A) using a cognitive learning technique. B) using a behavioral learning technique. C) reducing perceived risk. D) creating stimulus generalization. E) using an attitudinal learning technique.
225) An ad for Colgate Visible White shows someone using the brand and getting whiter teeth. This is an example of A) using a behavioral learning technique. B) reducing perceived risk. C) creating stimulus generalization. D) using a cognitive learning technique. E) using an attitudinal learning technique.
226) Research has found that for many products, including soft drinks, coffee, and cosmetics, consumers are unable to distinguish among brands in blind tests (i.e., taste or other use of the products without labels). Nonetheless, even when prices are similar, consumers have strong preferences for specific brands. They may buy out of habit, which is the basis of A) extended problem solving. B) limited problem solving. C) routine problem solving. D) high-involvement problem solving. E) personal problem solving.
227) A favorable attitude toward and consistent purchase of a single brand over time is referred to as
Version 1
88
A) stimulus generalization. B) attitudinal discrimination. C) brand loyalty. D) behavioral preference. E) consumer allegiance.
228)
Brand loyalty is
A) the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. B) a favorable attitude toward and consistent purchase of a single brand over time. C) a formalized agreement of a vendor to carry one brand over another because it views the quality of that brand to be superior to all others. D) the willingness of consumers to try a new brand in a brand line based upon their satisfaction with other brands in the line. E) the faith that other products manufactured by the same company with the same brand name will be of the same quality.
229)
Which statement about brand loyalty is most accurate?
A) Learning has little effect on brand loyalty because most habits are instinctual. B) Brand loyalty increases the perceived risk associated with impulse purchases. C) The incidence of brand loyalty is steadily rising in North America. D) Brand loyalty results from the positive reinforcement of previous actions. E) The best way to enhance brand loyalty is to brand all new products with the same brand name.
230) A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way is referred to as a(n)
Version 1
89
A) attitude. B) belief. C) value. D) motivation. E) perception.
231)
An attitude refers to
A) a person's consistent behaviors or responses to recurring situations. B) the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. C) a consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people. D) the feelings one has about the preferable modes of conduct that tend to persist over time. E) a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
232) If you hold a personal value of thriftiness, then you probably will have a favorable________Blank toward automobiles with good fuel economy. A) belief B) value C) attitude D) motivation E) perception
233)
Which statement about attitudes isfalse?
Version 1
90
A) Marketers are more concerned with American core values than personal values and attitudes in determining promotions. B) Attitudes are learned. C) Attitudes are shaped by one's values and beliefs. D) An attitude results in responses that are consistently favorable or unfavorable. E) Personal values affect attitudes by influencing the importance assigned to specific product attributes.
234) A consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people are referred to as A) values. B) attitudes. C) beliefs. D) predispositions. E) opinions.
235)
Beliefs refer to
A) a person's consistent behaviors or responses to recurring situations. B) a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. C) the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. D) a consumer's subjective perception of how a product or brand performs on different attributes. E) the moral and ethical precepts that guide a person's behavior.
Version 1
91
236) Marketers use three approaches to try to change consumer attitudes toward products and brands. One of these is A) reinforcing the consumer's sense of self-confidence in making wise purchase decisions. B) actively educating consumers about the product's competitive advantages. C) refocusing a consumer's attention from one attribute to another. D) adding new attributes to the product. E) denigrating the attributes of competitors' products.
237) What attitude change approach did Colgate marketers use to encourage consumers to purchase its product when it began to include the antibacterial agent triclosan in its product? A) changing beliefs about the extent to which a brand has certain attributes B) changing the perceived importance of attributes C) adding new attributes to the product D) providing free trials of the new product E) obtaining a seal of approval to reduce consumers' risk and encourage purchases
238) Most people already know that Tums, a popular antacid, contains calcium. Today, ads for Tums stress both the fact that it can be used as a calcium supplement and the health benefits of calcium. The new promotion involves changing consumers' attitudes toward Tums by A) changing beliefs about the extent to which Tums has a specific attribute. B) changing the perceived importance of a specific attribute. C) adding a new attribute. D) reducing the perceived risk. E) providing stimulus generalization to prospective buyers.
Version 1
92
239) Toyota was the first auto manufacturer to introduce a self-parking feature that it called Intelligent Parking Assist. Originally it was available as an option on the Toyota Prius in the Japanese market. Toyota was trying to change consumer attitudes about the vehicle by A) changing beliefs about the extent to which a brand has a specific attribute. B) changing the perceived importance of a specific attribute. C) adding a new attribute. D) reducing the perceived risk of the product. E) providing stimulus generalization to prospective buyers.
240) PepsiCo made "freshness" an important product attribute when it stamped freshness dates on its Pepsi cans. Prior to doing so, few consumers considered freshness a relevant issue for soft drinks. PepsiCo tried to change consumers' attitudes toward its soft drinks by A) changing beliefs about the extent to which a brand has a specific attribute. B) changing the perceived importance of a specific attribute. C) adding a new attribute. D) reducing perceived risk. E) providing stimulus generalization.
241) A mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them is referred to as A) culture. B) psychographics. C) social class. D) lifestyle. E) reference group.
242)
Lifestyle is
Version 1
93
A) the set of behaviors that is a result of spending one's time and money as one pleases. B) a mode of living that is defined by one's personal moral philosophy. C) the similar values, interests, and behaviors that members of society share. D) a self-defined identification of belonging to a lower, lower-middle, middle, uppermiddle, or upper class in terms of wealth. E) a mode of living identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.
243)
The analysis of consumer lifestyles is known as A) demographics. B) psychographics. C) social statistics. D) physiological needs. E) sociographics.
244)
Which statement about psychographics is most accurate?
A) Psychographics is unable to provide actionable information about potential customers since the data obtained from the research are too subjective to be reliably interpreted and acted upon. B) Although helpful in segmenting markets, psychographics is limited in its ability to target consumers. C) Psychographics combines demographic and geographic data to create VALS profiles. D) Psychographics describes a variety of segmentation approaches such as those based on behaviors, attitudes, activities, interests, opinions, and social values. E) Psychographic data are extremely vulnerable to current social trends and therefore are best suited to new market-product combinations rather than existing ones.
Version 1
94
245)
The VALS framework
A) is a well-known personality assessment. B) involves applying cognitive learning theory to segments that have low awareness of a product. C) examines the intersection of psychology, demographics, and lifestyles. D) is a study on the hierarchy of needs. E) is a form of geodemographic segmentation.
246)
The VALS framework segments consumers based on A) their primary motivation for buying products and their resources. B) their demographics. C) their product usage, age, and gender. D) where they live. E) their media usage and their demographics.
247)
Which statement about the VALS framework isfalse?
A) Consumers are inspired by one of three primary motivations: ideals, achievement, and self-expression. B) Consumers are motivated to buy products and services and seek experiences that give shape, substance, and satisfaction to their lives. C) The VALS framework seeks to explain why and how consumers make purchase decisions. D) The VALS framework identifies eight consumer segments. E) A consumer's gender and age have the most substantial effect on placement within a VALS consumer segment.
248)
In the VALS framework, a person's resources include all of theseexcept which?
Version 1
95
A) self-confidence B) curiosity C) motivation D) information seeking E) risk-taking
249) VALS groups of consumers motivated by________Blank are those who are guided by knowledge and principle. A) ideals B) achievement C) self-expression D) rewards E) success
250) In the VALS framework, consumers motivated by ideals are guided by knowledge and principles. One segment of the two ideals-motivated groups, known as________Blank, have higher resources and use "ought" and "should" benchmarks for social conduct. A) Makers B) Believers C) Thinkers D) Survivors E) Achievers
251) In the VALS framework, consumers motivated by ideals are guided by knowledge and principles. One segment of the two Ideals-motivated groups, known as________Blank, have fewer resources and are not looking to change society. They believe in right and wrong for a good life and have a strong connection to church and family.
Version 1
96
A) Experiencers B) Believers C) Makers D) Achievers E) Thinkers
252) VALS groups of consumers motivated by________Blank are those who look for products and services that demonstrate success to their peers or to a peer group they aspire to. A) ideals B) achievement C) self-expression D) rewards E) confidence
253) In the VALS framework, consumers motivated by achievement look for products and services that demonstrate success to their peers or to a peer group they aspire to. One segment of the two achievement-motivated groups, known as________Blank, have high resources and a mefirst, my family-first attitude. They are successful and work-oriented. A) Experiencers B) Believers C) Makers D) Achievers E) Thinkers
254) In the VALS framework, consumers motivated by achievement look for products and services that demonstrate success to their peers or a group to which they aspire. A segment of the achievement-motivated groups, known as________Blank, have low resources and live in the moment. Although they would like to better their lives, they have difficulty doing so.
Version 1
97
A) Strivers B) Experiencers C) Believers D) Makers E) Survivors
255) In the VALS framework, achievement-motivated consumers who have fewer resources than Achievers are called A) Believers. B) Experiencers. C) Strivers. D) Makers. E) Survivors.
256) VALS groups of consumers who are motivated by________Blank are those who want to make an impact on their world. A) ideals B) rewards C) achievement D) self-expression E) success
257) In the VALS framework, consumers motivated by self-expression want to make an impact on their world. One segment of the two self-expression-motivated groups, known as________Blank, have high resources and are social and spontaneous. They are first in, first out of trend adoption.
Version 1
98
A) Experiencers B) Believers C) Makers D) Achievers E) Thinkers
258) In the VALS framework, consumers motivated by self-expression want to make an impact on their world. One segment of the two self-expression-motivated groups, known as________Blank, have low resources and protect what they think they own. They value selfsufficiency and practical and functional products. A) Strivers B) Experiencers C) Believers D) Makers E) Survivors
259) In the VALS framework, two segments are not confined to a single primary motivation and stand apart based on their abundance or lack of A) ideals. B) rewards. C) self-expression. D) achievement. E) resources.
260) In the VALS framework, the segment with the most abundant resources, known as________Blank, are future oriented. They are confident enough to experiment and overcome failure.
Version 1
99
A) Experiencers B) Innovators C) Makers D) Achievers E) Strivers
261) In the VALS framework, the segment with minimal psychological, physical, and material resources, known as________Blank, are the quiet rank and file focused on meeting basic needs. A) Thinkers B) Innovators C) Makers D) Survivors E) Strivers
262) Two VALS segments stand apart. One segment represents the group with the highest resources and the other segment represents the lowest. These two groups are the________Blank and the________Blank. A) Thinkers; Believers B) Strivers; Survivors C) Achievers; Strivers D) Innovators; Survivors E) Experiencers; Makers
263) In the VALS framework, each consumer segment exhibits unique preferences and behaviors. Which segment would be the most likely to visit Facebook or Instagram?
Version 1
100
A) Experiencers B) Believers C) Thinkers D) Survivors E) Makers
264) In the VALS framework, each consumer segment exhibits unique preferences and behaviors. Which segment would be the most likely to subscribe to Netflix and order from Amazon? A) Survivors B) Innovators C) Believers D) Strivers E) Makers
265) In the VALS framework, each consumer segment exhibits unique preferences and behaviors. Which segment is most likely to view outdoor advertising? A) Strivers B) Experiencers C) Believers D) Survivors E) Makers
266) A consumer's purchases are often influenced by the views, opinions, or behavior of others. Two important aspects of personal influence to marketing are
Version 1
101
A) lifestyle and motivation. B) personality and lifestyle. C) opinion leadership and word-of-mouth activity. D) word-of-mouth activity and psychographics. E) psychographics and demographics.
267) A consumer's purchases are often influenced by the views, opinions, or behaviors of others. Which of these is an aspect of this personal influence? A) parental guidance B) peer pressure C) opinion leadership D) government regulation E) psychographics
268)
Individuals who exert direct or indirect social influence over others are referred to as A) decision makers. B) achievers. C) innovators. D) buzz managers. E) opinion leaders.
269)
An opinion leader is an individual
Version 1
102
A) within an organization who influences decision making. B) who is able to use moral persuasion to get others to comply with the latest trends. C) in an organization who encourages other paid individuals to forward marketerinitiated messages to others via email, social networking, websites, and blogs. D) who exerts direct or indirect social influence over others. E) who is able and willing to cut red tape and move an organization's marketing program forward.
270) A study byPopular Mechanics magazine identified 18 million________Blank who influence the purchases of some 85 million consumers for do-it-yourself products. A) lifestyle makers B) aspirational people C) autonomous leaders D) opinion leaders E) joint decision makers
271) Your company is introducing a new line of activewear for teenagers and invites the members of the high school track team to a private showing of the line. This group consists of________Blank for activewear clothing. A) lifestyle makers B) aspirational people C) autonomous leaders D) opinion leaders E) joint decision makers
272)
About what percentage of adults is considered to be opinion leaders?
Version 1
103
A) 1 percent B) 5 percent C) 10 percent D) 25 percent E) It depends upon the type of product.
273) When Movado, a watch company, uses a spokesperson such as actor Kerry Washington to promote its watches, it believes she is________Blank who can influence the purchase decision of its target market. A) an opinion leader B) a product champion C) an innovator D) a BzzAgent E) a rainmaker
274) ________Blank marketing is the practice of focusing on the identification and recruitment of individuals to advocate for products, services, and brands, often on social media, rather than focusing exclusively on prospective buyers. A) Celebrity B) Achiever C) Innovator D) Buzz E) Influencer
275)
Where are you most likely to find influencer marketing?
Version 1
104
A) Instagram and YouTube B) national newspapers likeUSA Today C) Hulu and Netflix D) popular fashion magazines likeVogue E) radio, including satellite radio
276)
The influencing of people during conversations is referred to as A) opinion formation. B) peer persuasion. C) interpersonal gossip. D) word of mouth. E) consumer socialization.
277)
Word of mouth refers to
A) advertising or public service announcements that rely solely on auditory or voice messages to reach an organization's target market. B) subjective, often negative, misconceptions that are passed from one person to another as the result of selective perception. C) the influencing of people during conversations. D) the individuals who exert direct or indirect social influence over others. E) casual or unconstrained conversation or reports about other people or offerings involving details that are not confirmed as being true.
278)
What percentage of all consumer conversations about brands happen face-to-face?
Version 1
105
A) 25 percent B) 33 percent C) 50 percent D) 75 percent E) 90 percent
279) What percentage of U.S. consumer product sales is directly based on word-of-mouth activity among friends, family, and colleagues? A) 10 percent B) 25 percent C) 33 percent D) 50 percent E) 67 percent
280) All of these are marketing activities designed to stimulate conversations that promote positive or retard negative word of mouthexcept which? A) using slogans, music, and humor in advertising B) giving appropriate product demonstrations C) recruiting and deploying people to produce buzz D) employing VALS segmentation strategies E) running teaser advertising campaigns in advance of new-product introductions
281) Febreze is an odor-controlling spray that is manufactured by Procter & Gamble. When Febreze was introduced, a few people in an Internet chat room stated that the product was harmful to house pets. Though untrue, the rumor spread. This is an example of
Version 1
106
A) negative word of mouth. B) a lack of back translation. C) propaganda. D) consumer ethnocentrism. E) poor opinion leadership.
282)
Popularity created by consumer word of mouth is called A) hype. B) buzz. C) propaganda. D) tweeting. E) spin.
283)
BzzAgent is a firm that specializes in a marketing strategy known as A) corporate espionage. B) teaser advertising. C) spin. D) buzz. E) viral marketing.
284)
BzzAgent
Version 1
107
A) is the top consumer information source in developing countries. B) captures honest word-of-mouth testimonials from satisfied customers who will promote new products or services. C) was the first on the Internet to create a public forum for new products. D) counteracts false rumors or negative buzz for quality products or services that have been unjustly accused on social networking websites. E) uses ethnographic research techniques to discover subtle behavioral and emotional reactions to products in their natural use environment.
285) Many large companies use which metric to track the likelihood of their current customers engaging in positive and negative word of mouth behavior? A) Customer Lifetime Value B) Net Promoter Score C) Sales per square foot D) Market share E) Unit sales
286) A Net Promoter Score is determined by subtracting the percentage of________Blank from the percentage of promoters among your current customers. A) complainers B) passives C) repurchasers D) detractors E) recommenders
287) People to whom an individual looks as a basis for self-appraisal or as a source of personal standards are referred to as
Version 1
108
A) action-oriented consumers. B) spokespersons. C) opinion leaders. D) social classes. E) reference groups.
288)
Reference groups refer to
A) the relatively permanent, homogeneous divisions in a society that consists of people who share similar values, interests, and behaviors. B) individuals who exert direct or indirect social influence over others. C) people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. D) those buyers who, through the size of their purchases, affect where marketing dollars will be spent. E) those with whom a person does not wish to be a member of or identified.
289) A reference group to which a person actually belongs is referred to as a(n)________Blank group. A) primary B) associative C) aspiration D) dissociative E) integrated
290) Amanda wears a warmup jacket with the logo of the local swim club to which she belongs, demonstrating pride in a(n)________Blank group.
Version 1
109
A) dissociative B) aspiration C) associative D) identification E) political
291) The specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use is referred to as A) a brand community. B) VALS. C) an opinion leader. D) a social class. E) a buzz group.
292)
A brand community refers to
A) the relatively permanent, homogeneous divisions in a society that consists of people who share similar values, interests, behaviors, and brands. B) a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use. C) people to whom an individual looks as a basis for purchasing particular brands. D) those buyers who, through the size of their purchases, affect where marketing dollars will be spent on a particular brand. E) those brands with whom a person does not wish to be identified.
293)
A brand community is a specialized form of the________Blank reference group.
Version 1
110
A) dissociative B) aspiration C) associative D) VALS E) social class
294) Many University of Florida students, fans, and others view themselves as part of "Gator Nation," the name of the________Blank given to supporters of the University of Florida's educational and athletic programs. A) VALS type B) aspiration group C) social class D) brand community E) market segment
295) A reference group that a person wishes to be a member of or wishes to be identified with is referred to as________Blank group. A) a preference B) an associative C) an aspiration D) an assimilation E) an integrated
296)
An aspiration group is one
Version 1
111
A) to which a person belongs and wishes to continue with. B) that a person wishes to be a member of or wishes to be identified with. C) that a person wishes to maintain a distance from because of differences in values or behaviors. D) that a person knows he or she can never really fit into because of basic cultural differences. E) that a person feels is significantly above him or her in terms of socioeconomics.
297) A local country club has a great golf course, swimming pool, tennis courts, and even a stable for horses. It also has numerous high-profile businesspeople, doctors, and local politicians as members. To attract new members, the club's board of directors should focus its marketing efforts on people who view its current members as a(n)________Blank group. A) associative B) aspiration C) dissociative D) pressure E) acceptance
298) An American Express advertising claim that "membership has its privileges" creates which type of reference group for those that don’t already carry this credit card? A) aspiration group B) dissociative group C) assimilation group D) integrated group E) associative group
299) A reference group that a person wishes to maintain distance from because of differences in values or behaviors is referred to as________Blank group.
Version 1
112
A) a socialization B) an associative C) an aspiration D) a dissociative E) an antisocial
300) In the United States, there are two major political parties whose members disagree with each other on a variety of issues. Many Republicans and Democrats view one another as being part of________Blank group. A) an associative B) an aspiration C) a dissociative D) a disparate E) an involvement
301) ________Blank, family, and culture are examples of sociocultural influences on consumer behavior. A) Lifestyle B) Personality C) Learning D) Decision making E) Social class
302) ________Blank may be defined as the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.
Version 1
113
A) A reference group B) Personality C) Social class D) Lifestyle E) A target market
303)
Social class is determined by education, occupation and A) level of income. B) personality traits. C) source of income. D) a variety of inherited factors. E) health status.
304) Differences in media preferences have been observed among social classes. Lower and working classes have been noted to prefer which of type of magazine? A) travel B) fashion C) tabloids D) news E) celebrity
305) ________Blank influences on consumer behavior result from three sources: consumer socialization, passage through the family life cycle, and decision making within the family or household.
Version 1
114
A) Lifestyle B) Situational C) Social D) Family E) Personal
306) The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers is referred to as A) consumer assimilation. B) consumer socialization. C) consumer lifestyle. D) purchase decision process. E) purchasing enculturation.
307)
Consumer socialization refers to the
A) distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. B) people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. C) process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers. D) modes of living that are identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them. E) relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.
Version 1
115
308) at
Research shows that consumer socialization results in brand preferences being developed
A) the age of 2. B) the age of 5 when cognitive skills have developed to understand the concept of money. C) the age of 13 when teenagers can understand the responsibility involved in saving money to be able to consume products and services. D) the age of 18 when college-aged people are living outside their parents' home for the first time and are responsible for their purchase decisions. E) any time, and most people change their brand preferences many times during their lifetimes.
309) Nicole gives her young daughter Kelli an allowance of $5 a week. Sometimes, Nicole takes Kelli shopping. But if Kelli wants something that costs more than she has saved, Nicole reminds her she needs to keep saving. When Kelli is finally able to purchase a special, more expensive item, she is allowed to pay for it herself, including bringing the product to the salesclerk to complete the purchase. In this way, Nicole encourages the development of Kelli's A) consumer assimilation. B) consumer acculturation. C) purchasing socialization. D) consumer socialization. E) purchasing enculturation.
310) The concept that consists of the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors, is referred to as the
Version 1
116
A) family flow. B) family life cycle. C) family continuum. D) household socialization. E) household patterning.
311)
The family life cycle concept refers to the
A) ways a family changes with various levels of income, racial or ethnic makeup, or religion, each variable having identifiable purchasing behaviors. B) distinct phases an individual progresses through from the birth, education, marriage, having children to retirement, each phase with identifiable purchasing behaviors. C) phases a blended family progresses through from marriage to separation, divorce, and remarriage, each phase with identifiable purchasing behaviors. D) distinct phases a family progresses through from formation to retirement, each phase with identifiable purchasing behaviors. E) intergenerational purchasing habits and product preferences that are passed down from one generation to the next.
Version 1
117
312)
Figure 5-7 illustrates the traditional progression as well as contemporary variations of
A) the family dynamic. B) the family life cycle. C) the family continuum. D) household socialization. E) household patterning.
313) The________Blank, a married couple with children younger than 18 years, constitutes just 20 percent of all U.S. households. A) traditional family B) typical household unit C) socialized household D) family stage E) idealized family unit
Version 1
118
314)
Which statement about the family life cycle is most accurate?
A) The majority of households today are composed of traditional families. B) Income and gender are two of the variables considered in the family life cycle. C) Young singles represent a target market for recreational travel, automobiles, and consumer electronics. D) Singles with no children are more likely to buy life insurance than any other group. E) The most financially secure group of any family life cycle stage is single parents with children.
315) Based on the stages of the family life cycle, which group most likely has the largest amount of discretionary income? A) young married couples without children B) single parents with children C) middle-aged couples without children D) young married couples with children E) middle-aged couples with children
316)
The two major styles of family decision making are A) paired and passive. B) male-dominant and female-dominant. C) joint and spouse-dominant. D) democratic and autocratic. E) active and passive.
317)
In families, spouse-dominant decision making occurs when
Version 1
119
A) the husband makes the majority of the purchase decisions. B) the wife makes the majority of the purchase decisions. C) both spouses make the purchase decisions together. D) the spouses alternate with respect to their purchase decisions. E) either the husband or the wife is primarily responsible for most purchase decisions.
318)
Which type of purchase is most likely to be the result of joint decision making? A) groceries B) children's toys C) furniture D) medical care E) car maintenance products
319)
Which statement about family decision making is most accurate?
A) Joint decision making typically increases with the education of the spouses. B) Husbands make most of the purchase decisions about cars, vacations, and homes. C) The two types of family decision making are joint and autonomous. D) With autonomous decision making, the husband would make all the decisions about groceries, medicine, and car maintenance. E) Women have little influence when it comes to men's clothing purchases except for socks and ties.
320) are
The five roles of individual family members in the consumer purchase decision process
Version 1
120
A) associative group, aspiration group, opinion leader, decision maker, and user. B) sustainer, experiencer, belonger, emulator, and achiever. C) opinion leader, influencer, decision maker, purchaser, and user. D) information gatherer, influencer, decision maker, purchaser, and user. E) need driven, inner directed, outer directed, opinion leader, and decision maker.
321) Josh told his father that the family needed a new computer, so his dad asked him to look into the latest products and their prices. Josh's mom asked that the new computer have an ergonomic keyboard because she has wrist problems. His sister Ann wanted the computer to have a lot of memory to edit videos. With this information, Josh's dad chose and ordered a Dell. Which best describes family member roles in making this decision? A) Josh's mother and Ann acted as information gatherers, users, and decision makers. B) Josh took on all the roles except that of purchaser. C) Josh's father took on all of the roles. D) Ann acted as a user and an influencer. E) Josh's mother acted as an information gatherer, a user, an influencer, and a gatekeeper.
322) The Martinez family is considering a vacation. Dad wants to stay home this year and use the money for home repairs. His mom who lives with them wants to visit relatives in New York. Dad asks his mother to determine the cost of a trip to New York and if they could stay with relatives while there. Mom and their daughter want to go to a beach. Which of these best describes the roles of family members in making this decision? A) There is no family member serving as an information gatherer. B) The mother and the grandmother only played the role of influencer. C) The females in the family only play two roles—users and influencers. D) Since the father will make the final vacation decision, he has taken on all of the roles. E) The grandmother plays the roles of user, influencer, and information gatherer.
Version 1
121
323) When strolling through the grocery store, a toddler tells her mother, "Yuck, I don't like peas." Her mother puts down the peas and chooses green beans instead. The role of the toddler in this purchase was that of A) information gatherer. B) influencer. C) purchaser. D) decision maker. E) user.
324) Today, 31 percent of________Blank are the primary grocery shoppers in their households, though they may not be the grocery decision makers. A) teenagers B) extended family members C) paid help D) children of any age E) men
325) Jennifer usually worked long hours at her job at the hospital, so her husband, Ari, an amateur chef, prepared most of the meals for the family. As an anniversary gift, Jennifer bought Ari a top-of-the-line professional cooktop and oven. Ari's primary role in this process was that of A) information gatherer. B) influencer. C) purchaser. D) decision maker. E) user.
326) The set of values, ideas, and attitudes that are learned and shared among the members of a group is referred to as Version 1
122
A) national character. B) culture. C) social class. D) code of ethics. E) ethnic ideology.
327) Subgroups within the larger, or national, culture with unique values, ideas, and attitudes are referred to as A) reference groups. B) orders. C) social classes. D) subcultures. E) normative groups.
328)
Subcultures refer to
A) any groups within a larger culture whose values and beliefs are more closely aligned to a foreign culture. B) groups within organizations whose values and beliefs influence the corporate culture. C) subgroups within the larger, or national, culture with unique values, ideas, and attitudes. D) stakeholder groups outside an organization whose values and beliefs are contrary to the corporate culture. E) the designation given to people between the ages of 13 and 24 whose values and beliefs are not yet fully formed but are still influenced both by their families and society.
329) Both in terms of population and spending power, which of these is the largest racial/ethnic subculture in the United States?
Version 1
123
A) Asian Americans B) Hispanics C) Caucasians D) African Americans E) Native Americans
330)
Which statement about Hispanic buying patterns is most accurate?
A) Hispanics are often brand loyal and willing to pay a premium price for premium quality. B) Hispanic buying preferences are strongly influenced by contemporary fads and fashions. C) Hispanics are hesitant about using advertising as an information source. D) Convenience is an essential product attribute for Hispanic homemakers with respect to food preparation and consumption. E) Uniquely Hispanic buying patterns have virtually disappeared over the past 10 years due to increased assimilation.
331)
Which of these is a reason that marketing to Hispanics has proven to be a challenge?
A) Hispanics don't consider advertising a credible source of product information. B) Hispanic communities are spread across the entire country and therefore are difficult to target. C) The Hispanic subculture is diverse. D) Hispanics prefer imports to American-made products; they tend to be ethnocentric in their product preferences. E) Assimilation is valued and the Hispanic community finds cultural target marketing offensive.
Version 1
124
332) Among the three major racial/ethnic subcultures in the United States, African Americans rank as________Blank in terms of spending power. A) the largest B) the second largest C) the third largest D) about equal with Hispanics E) about equal with Asian Americans
333)
Which statement about African American buying patterns is most accurate? A) African Americans spend far less on electronic equipment than Caucasians. B) African Americans spend half as much on health and beauty products as Caucasians. C) African Americans are not strongly motivated by brand quality or support for social
causes. D) African Americans are very unlikely to tell their friends about products and services they like. E) When socioeconomic status differences between African Americans and Caucasians are removed, there are more similarities than points of difference.
334)
Which statement about African American buying patterns is most accurate?
A) There have been no observable differences in the consumption patterns of African Americans and Caucasians. B) African American men spend more on health and beauty products than Caucasian men do. C) The typical African American family is five years older than the typical Caucasian family. D) African American purchase behavior is still affected by the historical deprivation in employment and educational opportunities in the United States. E) African Americans are not price-conscious.
Version 1
125
335)
Which statement about Asian American buying patterns is most accurate?
A) There is no real diversity among Asian American subcultures. B) Assimilated Asian Americans exhibit buying patterns that are very different from the typical American consumer. C) Asian Americans spend less than the U.S. national average on housing, education, apparel, and new cars. D) The Asian American subculture is the most entrepreneurial in the United States. E) Consumer research on Asian Americans suggests individuals and families divide into three groups: assimilated, transitional, and recent immigrants.
336)
Which statement about Asian American buying patterns is most accurate?
A) Assimilated Asian Americans have very different buying patterns from a typical U.S. consumer. B) Despite the diversity within the Asian subculture, this group can be described as brand loyal and cost conscious. C) The Asian American subculture is growing very slowly in the United States. D) Asian Americans are the least educated racial/ethnic subculture in the United States. E) Assimilated Asian Americans are unlikely to hold professional or managerial positions in the United States.
337) Anheuser-Busch's agricultural products division sells eight varieties of California-grown rice, each with a different Asian label to cover a range of nationalities and tastes. AnheuserBusch is recognizing the diversity of the Asian American________Blank in the United States.
Version 1
126
A) agricultural trends B) influence C) entrepreneurialism D) subculture E) assimilation
338) Asian Americans who are conversant in English, highly educated, hold professional and managerial positions, and exhibit buying patterns very much like typical American consumers are referred to as________Blank Asian Americans. A) socialized B) diaspora C) nonassimilated D) reassimilated E) assimilated
339) An Asian American family whose relatives immigrated to the U.S. four generations ago has three children. The oldest son, George, is in medical school. Susan, at the age of 21, is a concert pianist. Brent is a second-year business school student. This family is likely to exhibit which of these Asian American buying patterns? A) nonassimilated, yet celebrating their culture by purchasing authentic Asian goods B) assimilated, exhibiting buying patterns very much like other typical American consumers C) assimilated, yet celebrating their culture by seeking traditionally Asian occupations D) nonassimilated, due to inherent differences in Asian subcultures that transcend generations E) nonassimilated, exhibiting buying patterns very much like other typical American consumers
Version 1
127
340) A major shift in the needs of consumers using Coppertone products for their skin has been from________Blank to________Blank. A) moisturizing; anti-aging B) sealing; exfoliating C) healing; maintenance D) tanning; protection E) simplicity; convenience
341)
All of these are examples of Coppertone's product innovationsexcept which? A) sunscreen for babies B) water-resistant sunscreen lotion C) all-organic sunscreen D) MyUV Alert app to provide reapplication reminders E) continuous spray sunscreen
342) In the consumer purchase decision process for Coppertone products, the problem recognition stage is typically triggered either by "going somewhere" like a vacation, beach, or pool, or through what? A) heightened awareness of the need to protect skin regularly B) consumer exposure to medical information from their doctors C) participation in indoor or outdoor fitness activities D) a desire to incorporate more natural products into one's lifestyle E) experiencing a bad skin infection
343) To facilitate the________Blank stage in the consumer purchase decision process, Coppertone allocates a significant part of is marketing budget to make sure Coppertone products appear in any online searches about sunscreen.
Version 1
128
A) problem recognition B) postpurchase behavior C) alternative evaluation D) information search E) purchase decision
344) For Coppertone products, form (lotion vs. spray), SPF level, and price are the most common A) consideration set. B) perceived risks. C) situational influences. D) marketing mix influences. E) evaluative criteria.
345) For Coppertone products, evaluations in the postpurchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are A) dry skin and acne. B) greasy formula and sunburn. C) dry skin and skin infection. D) sunburn and poor customer service. E) poor customer service and high price.
346) Explain the actions and considerations that relate to the five stages of the consumer purchase decision process.
Version 1
129
347) You will be graduating soon and have been offered what you consider the job of your dreams. The new position, however, requires some traveling so you will need a car. You currently do not have one. What decision process will you go through to purchase an automobile?
348) Would you agree or disagree with this statement? "It's a lot cheaper and easier to keep existing customers than to try to find new ones." Explain your answer.
349) Explain the differences between routine problem solving, limited problem solving, and extended problem solving. Give an example of when each might be used.
350)
Name the five situational influences that affect the consumer purchase decision process.
Version 1
130
351) Ruth, who has no children, wants to buy a special baby gift for her best friend's baby shower, which is this evening. Since she won't have any time between work and the baby shower, she must go today during her lunch break. She is planning on taking her sister with her to help make the selection. Ruth knows she will be ready to buy every baby-oriented product she sees because she wishes that she too was having a baby. Identify each of the situational influences that are described in this scenario. Which situational influence was not described?
352)
Define motivation and personality and how they impact marketing.
353) Psychologists point out that an individual's needs may be hierarchical; that is, once one set of needs is met, people seek to satisfy the next set of needs in the hierarchy. Name each of the five levels in Maslow's hierarchy of needs in order and give an example of each.
354) How do selective perception, selective exposure, selective comprehension, and selective retention differ?
355)
Why is learning important to marketing?
Version 1
131
356)
Explain how attitudes are shaped by our values and beliefs.
357) How might Ford Motor Co. apply the three methods of attitude change in its marketing activities?
358)
What does lifestyle mean and why is it important to marketers?
359) The VALS system seeks to explain why and how consumers make purchase decisions. Consumers motivated by ideals are guided by knowledge and principle. Explain the difference between Thinkers and Believers.
Version 1
132
360) Why would Proactiv, an acne treatment company, select beauty mogul Kendall Jenner to appear in an ad campaign? What kind of influence could she have on consumer behavior?
361)
Define consumer socialization.
362)
Why is the family life cycle important to marketing?
363) What is a subculture? Which American racial/ethnic subcultures subcultures are most frequently targeted by marketers and why?
Version 1
133
Answer Key Test name: Chap 05_16e_Kerin 1) D 2) E 3) C 4) D 5) A 6) B 7) C 8) B 9) C 10) B 11) D 12) E 13) E 14) A 15) A 16) B 17) C 18) C 19) A 20) D 21) C 22) B 23) D 24) A 25) E 26) D Version 1
134
27) A 28) A 29) D 30) B 31) A 32) B 33) D 34) A 35) C 36) E 37) D 38) D 39) B 40) D 41) E 42) C 43) B 44) A 45) A 46) C 47) D 48) C 49) D 50) B 51) D 52) E 53) C 54) B 55) C 56) C Version 1
135
57) C 58) C 59) D 60) A 61) B 62) D 63) C 64) C 65) A 66) D 67) B 68) A 69) E 70) C 71) E 72) D 73) E 74) D 75) B 76) E 77) B 78) D 79) E 80) C 81) B 82) B 83) C 84) B 85) E 86) B Version 1
136
87) D 88) C 89) C 90) E 91) C 92) A 93) B 94) E 95) A 96) A 97) E 98) C 99) D 100) B 101) D 102) C 103) A 104) E 105) A 106) C 107) B 108) A 109) D 110) E 111) A 112) B 113) B 114) E 115) C 116) C Version 1
137
117) D 118) D 119) C 120) E 121) C 122) C 123) E 124) C 125) D 126) A 127) B 128) A 129) A 130) E 131) C 132) B 133) B 134) A 135) E 136) D 137) B 138) B 139) C 140) D 141) C 142) B 143) E 144) C 145) E 146) B Version 1
138
147) C 148) A 149) D 150) C 151) B 152) B 153) E 154) B 155) C 156) E 157) C 158) B 159) C 160) E 161) D 162) A 163) E 164) D 165) B 166) A 167) A 168) B 169) C 170) D 171) A 172) D 173) C 174) D 175) B 176) D Version 1
139
177) E 178) C 179) C 180) C 181) B 182) B 183) A 184) A 185) C 186) A 187) B 188) A 189) C 190) D 191) C 192) B 193) E 194) D 195) E 196) C 197) D 198) B 199) E 200) B 201) E 202) A 203) C 204) A 205) E 206) B Version 1
140
207) C 208) D 209) B 210) B 211) E 212) A 213) C 214) A 215) C 216) D 217) B 218) C 219) D 220) E 221) B 222) B 223) C 224) A 225) D 226) C 227) C 228) B 229) D 230) A 231) E 232) C 233) A 234) C 235) D 236) D Version 1
141
237) C 238) B 239) C 240) B 241) D 242) E 243) B 244) D 245) C 246) A 247) E 248) C 249) A 250) C 251) B 252) B 253) D 254) A 255) C 256) D 257) A 258) D 259) E 260) B 261) D 262) D 263) A 264) B 265) E 266) C Version 1
142
267) C 268) E 269) D 270) D 271) D 272) C 273) A 274) E 275) A 276) D 277) C 278) D 279) E 280) D 281) A 282) B 283) D 284) B 285) B 286) D 287) E 288) C 289) B 290) C 291) A 292) B 293) C 294) D 295) C 296) B Version 1
143
297) B 298) A 299) D 300) C 301) E 302) C 303) C 304) C 305) D 306) B 307) C 308) A 309) D 310) B 311) D 312) B 313) A 314) C 315) C 316) C 317) E 318) D 319) A 320) D 321) D 322) E 323) B 324) E 325) E 326) B Version 1
144
327) D 328) C 329) B 330) A 331) C 332) B 333) E 334) D 335) D 336) B 337) D 338) E 339) B 340) D 341) C 342) A 343) D 344) E 345) B
Version 1
145
CHAPTER 6 1)
According to the text, JCPenney buys paper for which media? A) in-store signage B) special advertising inserts in magazines such asVogue C) newspaper inserts and direct mail pieces D) annual and 10-K reports E) point-of-purchase displays
2)
Purchasing paper for JCPMedia is one example of A) organizational buying. B) online buying. C) on-time delivery. D) derived demand. E) cooperative selling.
3) When JCPMedia buys paper for JCPenney newspaper inserts, it considers suppliers' forest management and other sustainability practices. JCPMedia buyers consider these as part of the process to A) fulfill profit responsibilities. B) formally evaluate paper supplier capabilities. C) eliminate the need for online purchasing. D) shorten the value chain. E) fulfill the auditing role.
Version 1
1
4) JCPenney looks at several capabilities when selecting a paper supplier. These organizational buying criteria include on-time delivery, the availability, quality and quantity of selected grades of paper, forestry management and sustainable practices, and price. This examination would be done during the________Blank stage of the organizational buying decision process. A) procurement analysis B) break-even analysis C) purchase decision D) information search E) alternative evaluation
5) The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others is referred to as A) integrated marketing. B) institutional marketing. C) business-to-business marketing. D) reseller marketing. E) organizational marketing.
6)
Business-to-business marketing is the marketing of
Version 1
2
A) goods to companies, governments, or ultimate consumers for use in the creation of goods and services. B) products to not-for-profit organizations at a reduced fee or nominal cost for use in the creation of goods and services that they can produce and market to others. C) products and services to companies, governments, or not-for-profit organizations for use in the creation of products that they can produce and market to others. D) services in the area of intellectual property such as legal, financial, or creative consulting. E) an idea to create interest or generate goodwill, not just for an individual brand but also for an entire industry or product class.
7) Manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy goods and services for their own use or for resale are referred to as A) multinational buyers. B) resellers. C) organizational buyers. D) ultimate consumers. E) institutional buyers.
8)
Organizational buyers are
A) wholesalers, retailers, and service companies that buy goods and services exclusively for resale. B) any organization that buys products and services for their own use or for resale. C) not-for-profit organizations that buy goods and services for their own use. D) firms that typically buy physical goods and resell them again without any reprocessing. E) all buyers in a nation, including ultimate consumers.
Version 1
3
9) Organizational buyers include manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that A) purchase exclusively from one supplier. B) are exempt from state and local taxes. C) sell directly to ultimate consumers. D) sell goods and services for their own use. E) buy products and services for their own use or for resale.
10) Which organizational buyers purchases raw materials and parts to reprocess into the finished goods they sell? A) retailers B) wholesalers C) agents D) manufacturers E) ultimate consumers
11)
Which statement regarding organizational buyers is most accurate?
A) Wholesalers and retailers resell the goods they buy without reprocessing them. B) Wholesalers and retailers alter the goods they sell to meet the specific needs of their customers prior to resale. C) Manufacturers purchase processed goods and resell them to suppliers who in turn resell them to ultimate consumers. D) Ultimate consumers can be considered organizational buyers when they purchase in large quantities. E) Government agency purchases are more similar to ultimate consumer purchases than they are to wholesalers and retailers.
Version 1
4
12)
All of these are organizational buyersexcept which? A) industrial firms B) government agencies C) ultimate consumers D) resellers E) wholesalers
13)
Organizational buyers are divided into three markets, which are A) industrial, wholesaler, and retailer. B) industrial, retailer, and government. C) retailer, manufacturer, and government. D) industrial, government, and ultimate consumer. E) industrial, reseller, and government.
14)
Which of these exemplifies an organizational buyer? A) A local baker buys sugar at the grocery store to make cookies with his children at
home. B) A dentist buys a new couch for her apartment. C) An architect hires an Uber to take him to the airport for a vacation. D) The owner of an office building contracts with a service to provide overnight janitorial services for it. E) The mayor rents a tuxedo to wear to his daughter's wedding.
15)
An industrial firm
Version 1
5
A) is one that is independently owned and takes title to the merchandise it sells. B) buys physical goods and resells them again without any reprocessing. C) deals exclusively with federal, state, and local governments. D) in some way reprocesses a product or service it buys before selling it again to the next buyer. E) only produces a product, not a service.
16) A firm that reprocesses a product or service it buys before selling the product again to the next buyer is referred to as a(n) A) industrial firm. B) reseller firm. C) government agency. D) wholesaler. E) retailer.
17) Mining companies, farms, transportation, and legal services are examples of companies in the A) consumer market B) cooperative market. C) reseller market. D) industrial market. E) government market.
18)
Which type of firm is in the industrial market?
Version 1
6
A) retailing B) construction C) wholesaling D) state governments E) federal regulatory agencies
19)
Which of these is a service business within the industrial market? A) construction B) mining C) transportation D) government E) farming
20)
________Blank comprise the highest percentage of firms in industrial markets. A) Manufacturing firms B) Construction firms C) Agricultural firms D) Mining companies E) Service companies
21) The services market sells diverse services such as legal advice, auto repair, and dry cleaning, and this market represents 75 percent of all industrial firms. Which of these is another such service firm?
Version 1
7
A) finance B) wholesalers C) retailers D) government units E) educational institutions
22) Corning, Inc., which transforms an exotic blend of materials to create optical fiber capable of carrying much of the telephone traffic in the United States on a single strand, is operating in a(n)________Blank market. A) consumer B) government C) service D) reseller E) industrial
23) Archer Daniels Midland Co. (ADM) is the world's largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey's that manufacture consumer products containing chocolate. ADM is operating in a(n)________Blank market. A) consumer B) government C) industrial D) processor E) reseller
Version 1
8
24) Keystone Foods, which invented the individual quick freeze process for beef, provides McDonald's with millions of pounds of chicken, beef, and fish annually for use in its restaurants. The firm sources the animal proteins from farms and processes them in a variety of ways, such as breading or freezing, before selling them to McDonald's. Keystone is operating in a(n)________Blank market. A) heavy goods B) government C) service D) industrial E) reseller
25) Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers of health care products. Graham-Field Health Products operates in a(n)________Blank market. A) consumer B) government C) service D) industrial E) reseller
26) Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as A) industrial firms. B) reseller firms. C) government agencies. D) consumer product firms. E) nonprofit firms.
Version 1
9
27)
Among organizational markets, the reseller market includes A) manufacturers. B) logistics and supply chain providers. C) government agencies. D) end-user service providers. E) retailers and wholesalers.
28) European Style Furniture (ESF), headquartered in New York, acquires fine furniture from several high-quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States. In this context, ESF is most likely classified as a(n) A) producer. B) reseller. C) service provider. D) government agency. E) industrial firm.
29) 1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and CooperVision. It would most likely be classified as a(n) A) industrial service provider. B) health-care provider. C) reseller. D) industrial firm. E) government agency.
Version 1
10
30) Liberty Medical Supply is a home delivery service that sells diabetes testing supplies, prescription drugs, and other supplies directly to consumers to assist them in the management of their health-related conditions. Since Liberty Medical does not make any changes to the supplies that it obtains from manufacturers, it would most likely be classified as a(n) A) industrial service provider. B) healthcare manufacturer. C) industrial firm. D) reseller. E) government agency.
31) When selling to organizational buyers, Amazon.com, Office Depot, and Costco would most likely be classified as A) government units. B) resellers. C) manufacturers. D) wholesalers. E) industrial firms.
32) Federal, state, and local agencies that buy products and services for the constituents they serve are referred to as A) industrial markets. B) reseller markets. C) consumer markets. D) government units. E) global markets.
33)
When Louisiana State University buys new laptops for its faculty, it is operating as a(n)
Version 1
11
A) industrial market. B) business market. C) government unit. D) consumer market. E) service provider.
34) When the General Services Administration (GSA), an agency of the federal government, purchased 116 Chevy Volts from General Motors for its vehicle fleet, it was operating as A) an industrial market. B) a business market. C) a consumer market. D) a government unit. E) a service provider.
35) The City of Denver contracts with Solid Waste Management to provide trash collection services for its citizens. The city is operating as A) a government unit. B) an industrial market. C) a business market. D) a consumer market. E) a service provider.
36) The system that provides common industry definitions for Canada, Mexico, and the United States is referred to as the
Version 1
12
A) Standard Industrial Code System (SICS). B) United Nations Central Product Classification System (UNCPCS). C) National Codes of Industry System (NCIS). D) North American Industry Classification System (NAICS). E) Federal System of International Organizations (FSIO).
37)
The North American Industry Classification System (NAICS) provides
A) common industry definitions for North America, Central America, and South America to measure economic activity in the Western Hemisphere. B) common industry definitions between Canada and the United States to reduce trade barriers for cross-border firms. C) a classification system for products that is consistent worldwide. D) a dealer network for products across North America, Central America, and South America. E) common industry definitions for Canada, Mexico, and the United States to measure economic activity in these countries.
38)
The acronym NAICS stands for A) National Association of Industrial Compliance Standards. B) National Association of Industrial Communication Systems. C) North American Industrial Communication Standards. D) North American Industry Classification System. E) North Atlantic Industrial Classification System.
39)
The NAICS provides common industry definitions for
Version 1
13
A) Canada, the United Kingdom, and the United States. B) North America, Asia, and Europe. C) North America, Central America, and South America. D) Canada, England, and Australia. E) Canada, Mexico, and the United States.
40)
The NAICS groups economic activity to permit studies of A) multi-language advertising. B) market share, demand, or import competition. C) growth potential in emerging markets. D) best practices for manufacturers. E) job outsourcing and trade flow impacts.
41) The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The first two digits designate A) a country of origin. B) an industry group. C) a specific industry. D) an individual country-level national industry. E) a sector of the economy.
42) The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The third digit designates a(n)
Version 1
14
A) industry subsector. B) industry group. C) specific industry. D) individual country-level national industry. E) sector of the economy.
43) The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The fifth digit designates a(n) A) industry subsector. B) industry group. C) specific industry. D) individual country-level national industry. E) sector of the economy.
44) Important market characteristics in organizational buying behavior include which of these? A) large markets but orders become progressively smaller over time B) diminishing international opportunities as more firms enter the market C) many customers placing progressively larger orders over time D) fewer customers but with larger orders E) a market that functions independently of consumer demand
45) Important market characteristics in organizational buying behavior include which of these?
Version 1
15
A) Organizational buying behavior is basically the same as consumer buying behavior since individuals are involved in both processes. B) Demand for industrial products is elastic instead of inelastic. C) Demand for industrial products and services is derived. D) Purchase orders are much more frequent and they are usually small. E) Forecasting is not as important in organizational buying as in consumer buying.
46) Important product or service characteristics in organizational buying include which of these? A) A heavy emphasis is placed on loyalty programs and rebates. B) Direct selling to organizational buyers is rare. C) A fixed, nonnegotiable price is the norm. D) Many of the products and services are technical in nature. E) Personal relationships are preferred to online buying over the Internet.
47)
Important characteristics in organizational buying include which of these? A) Many of the goods purchased are raw and semifinished. B) A heavy emphasis is placed on maintaining standardization to keep costs down. C) Coupons and contests are the most frequent forms of promotion. D) A fixed, nonnegotiable price is the norm. E) Personal relationships are preferred to online buying over the Internet.
48) In the organizational buying process, heavy emphasis is placed on which product or service characteristics?
Version 1
16
A) delivery time, technical assistance, and postsale service B) low price, buyer incentives, and extended contracts C) buyer incentives, technical assistance, and exclusive contracts D) quantity discounts, delivery time, and exclusive contracts E) low price, buyer incentives, and postsale service
49) Important buying process characteristics in organizational buying behavior include which of these? A) Few large transactions are made over the Internet due to concerns of industrial espionage. B) Negotiations, purchases, and delivery occur in real time at an accelerated rate. C) There are often reciprocal arrangements and negotiations between buyers and sellers. D) Most purchases are made through government-licensed negotiators. E) Direct selling to organizational buyers is rare because it is cost-prohibitive.
50) Which statement about marketing mix characteristics in organizational buying behavior is most accurate? A) Few large transactions are made over the Internet. B) The actual buyer retains all of the influence in the buying decision. C) Advertising is very simplistic in nature. D) Direct selling to organizational buyers is the rule. E) Only finished goods need a developed marketing mix; resellers need worry just about the transaction.
51) The demand for industrial products and services that is driven by demand for consumer products and services is referred to as
Version 1
17
A) secondary marketing. B) derived demand. C) reciprocal supply. D) demand elasticity E) sequential demand.
52)
Derived demand is
A) a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price. B) the demand for industrial products and services that is driven by the demand for consumer products and services. C) the relationship between total revenue and total cost to determine profitability at various levels of output. D) the point on a demand curve where supply and demand intersect. E) the percentage change in quantity demanded relative to a percentage change in price.
53) Derived demand means the demand for industrial products and services is driven by, or derived from, the A) NAICS statistical models. B) gross national product. C) demand for consumer products and services. D) demand for industrial products in other categories or markets. E) demand for government products and services.
54) During late summer and early fall, there is a large demand for containers in Asia that are used to ship consumer products from Asia to the United States in time for the holiday selling season. The demand for these containers is referred to as________Blank demand.
Version 1
18
A) unitized B) derived C) reseller D) applied E) implied
55) Airbus manufactures commercial aircraft that it sells to a variety of airlines worldwide. Still, demand for its products often depends on rates of air travel among consumers. Demand for Airbus products is referred to as________Blank demand. A) unitized B) reseller C) applied D) implied E) derived
56) Spruceland Millworks in Canada makes wood pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as A) reactive demand, which is tied to primary economic drivers like the construction industry. B) unitary demand, which is tied to the average income level for Spruceland and its competitors. C) derived demand, which is tied to the sales of appliances. D) inelastic demand, which is tied to the cost of the components of the pallets. E) elastic demand, which is tied to the cost of the components of the pallets.
Version 1
19
57) Concert Staging Co. provides the stage, roof system, lighting, and sound for outdoor concerts and theatrical events. The number of concert and theater events sponsored by various organizations determines how many times the company is hired to provide its services, which often depends on consumer willingness to buy event tickets. Demand for the services provided by Concert Staging Co. is considered A) derived. B) unitized. C) industrial. D) applied. E) reseller.
58) South Cape Ostrich Tanning (SCOT) is a producer of fine ostrich leathers, which are sold to manufacturers that make a variety of products from shoes to car interiors. Demand for SCOT's leather is a result of consumer interest in products such as Via La Moda handbags made from this exotic and expensive leather. SCOT has________Blank demand for its product. A) derived B) unitized C) industrial D) applied E) reseller
59) Swiss specialty chemical company Ciba is the primary producer of the chemical triclosan, the antibacterial agent in many household products such as liquid soap. Consumers may have heard about research suggesting environmental and health risks associated with the cumulative effects of antibacterial agents. Changing consumer purchases provide an example of________Blank demand for Ciba's triclosan product.
Version 1
20
A) applied B) unitized C) industrial D) derived E) consumer
60) Because orders in organizational buying are typically much larger than in consumer buying, buyers must often________Blank when the order is above a specific amount, such as $5,000. A) pay estimated sales taxes in advance B) move up the time required to execute a purchase agreement C) get competitive bids from at least three prospective suppliers D) forgo the purchase because senior management is unlikely to approve it E) create separate orders in amounts less than a certain threshold
61) All of the following statements about the purchase involved in organizational buying are trueexcept which? A) The length of time required to arrive at a purchase agreement can vary with size of purchase. B) The dollar value of a single purchase made by an organization can amount to millions or billions of dollars. C) The size of purchase impacts who participates in the purchase decision. D) The size of purchase impacts who makes the final decision. E) The size of the purchase is typically smaller than it is in consumer buying but it is done more frequently.
62) Firms marketing consumer products or services often try to reach thousands or millions of individuals or households. Firms selling to organizations
Version 1
21
A) try to reach tens of millions of wholesalers, retailers, and government units. B) are restricted to far fewer buyers. C) hope to obtain similar numbers of business customers, or even more. D) do not have customers, per se. E) also must sell to ultimate consumers because of the market potential.
63)
A business firm buys products and services for one main reason, which is to A) increase profitability. B) beat its competitors. C) satisfy the needs of its suppliers. D) employ people. E) maintain updated inventory.
64)
The primary organizational buying objective for business firms is to A) create an atmosphere of inclusiveness. B) help smaller companies stay in business. C) increase the efficiency of its buyers. D) help the firm increase profitability. E) turn inventory.
65)
The buying objective for nonprofit firms and government agencies is usually to A) meet the needs of the groups they serve. B) increase profits through reducing costs. C) increase profits through increasing revenues. D) maintain profits through reducing costs and increasing revenues. E) reduce profits through reducing costs and reducing revenues.
Version 1
22
66) The American Red Cross provides disaster relief, among many other services. As a nonprofit organization, its primary buying objective is to A) increase profits through reducing costs. B) increase profits through increasing donations. C) diversify its services mix to survive an economic downturn. D) meet the needs of those affected by disasters or other issues. E) maintain purchase levels to support its suppliers.
67)
Many companies have broadened their buying objectives to include an emphasis on
A) purchasing from as many vendors as possible to avoid component shortfalls. B) purchasing from start-up firms to grow the economy. C) diversifying their product lines and brand extensions to reduce the risk of failure for any one item. D) pricing freezes to maintain consistent quantities demanded from consumers. E) purchasing from women- and minority-owned suppliers and vendors.
68) The primary reason companies have placed an emphasis on buying from minority- and women-owned suppliers and vendors is A) new federal government regulations require it. B) they can help a firm meet or exceed its objectives in sales, profits, or customer satisfaction. C) it is a socially responsible action expected of leading organizations. D) it can attract new target markets. E) these companies will work harder for less money.
Version 1
23
69) The objective attributes of the supplier's products and services and the capabilities of the supplier itself are collectively referred to as A) the supplier consideration set. B) derived demand factors. C) evaluative criteria. D) performance metrics. E) organizational buying criteria.
70)
Organizational buying criteria are
A) the restrictions placed on potential solutions to a problem in a purchase decision. B) the specific qualifications of a potential customer based upon past performance, reliability, and consistency regarding the purchase of an organization's offerings. C) the qualifications of the supplier's products and services based on recommendations from competitors. D) the objective attributes of the supplier's products and services and the capabilities of the supplier itself. E) the factors that an ultimate consumer would consider that represent both the objective attributes of a brand and the subjective ones to compare different products and brands.
71) Organizational buying criteria serve the same purpose as________Blank criteria used by consumers. A) consideration B) evaluative C) decision D) alternative E) prepurchase
72)
There are seven commonly used organizational buying criteria. One of them is
Version 1
24
A) production facilities and capacity. B) loyalty. C) longevity D) adaptability. E) responsive communication.
73)
There are seven commonly used organizational buying criteria. One of them is A) flexibility. B) technical capability. C) adherence to government regulation. D) senior management directives. E) consumer awareness.
74) To be a Walmart supplier, a firm must be able to deliver its products to Walmart's distribution centers within a 16-minute window. If the driver arrives before or after the scheduled window, the supplier will be turned away and fined. Walmart's insistence on choosing a supplier based upon its ability to provide on-time delivery is an example of a(n) A) supplier value dimension. B) derived demand factor. C) evaluative criterion. D) external performance measure. E) organizational buying criterion.
75) The deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers is referred to as
Version 1
25
A) buyer development. B) a supply partnership. C) a make-buy decision. D) supplier development. E) buyer-seller reciprocity.
76)
Supplier development is the
A) effort of suppliers to shape buyers' needs and stimulate demand among ultimate consumers. B) practice of dividing large orders among several suppliers rather than a single one to avoid possible manufacturing delays due to bad weather, plant mishaps, union issues, etc. C) deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers. D) practice of establishing a close relationship with one supplier rather than many to ensure loyalty and preferential treatment when filling exceptionally large orders. E) shift of a firm from supplier to manufacturer when repeated experience with a product and excellent buyer/seller relationships make the change both feasible and profitable.
77) When Deere & Company employs engineers who work full-time with the company's suppliers to improve their efficiency and quality and to reduce their costs, it is practicing A) buyer development. B) make-buy decisions. C) supply partnerships. D) supplier development. E) directive purchasing.
78)
Which of these characterizes organizational buyer-seller relationships?
Version 1
26
A) Purchases are often made after lengthy or complex negotiations. B) Purchases are usually of small dollar values. C) Short-term contracts are often prevalent. D) Reciprocal arrangements are illegal. E) Delivery schedules are less important than production capacity.
79)
Which of these characterizes organizational buyer-seller relationships? A) Purchases are typically made with few to no negotiations. B) Purchases are usually of small dollar values. C) Long-term contracts are often prevalent. D) Reciprocal arrangements are prohibited by the federal government. E) Delivery schedules are largely irrelevant.
80) The existence of reciprocal arrangements, the long-term contracts, and the buyer-seller relationships that evolve into supply partnerships are all examples of A) illegal activities that are a common weakness of organizational buying. B) illegal activities that result from collusion between buyers and sellers. C) activities that are strictly governed by the NAICS. D) the nature of relationships between buyers and sellers in organizational buying. E) activities that result from extreme competition between manufacturers when there are too few suppliers.
81) Merrill Lynch and Thompson Financial had a three-year, $1 billion project that put workstations on the desks of 25,000 of Merrill Lynch's brokers. These machines put the world of investing information at brokers' fingertips. Thompson, the supplier, was obliged to not only deliver technology and services on time and on budget, but also constantly improve customersatisfaction levels among Merrill Lynch's brokers and customers. This is an example of
Version 1
27
A) a reciprocity agreement. B) exclusive dealing. C) supplier alliance. D) a buyer-seller relationship. E) a tying arrangement.
82) An industrial buying practice in which two organizations agree to purchase each other's products and services is referred to as A) a tying arrangement. B) exclusive dealing. C) reciprocity. D) a supply partnership. E) noncompetitive bidding.
83)
In a buyer-seller relationship, reciprocity is
A) the practice whereby a seller requires the purchaser of one product to buy another item in the line. B) an industrial buying practice in which two organizations agree to purchase each other's products and services. C) an arrangement a manufacturer makes with a reseller to only handle its products and not those of competitors. D) the illegal practice of refusing to purchase a seller's products unless the seller agrees not to purchase that product or any similar products from any other buyer. E) a supplier’s requirement for a buyer purchasing some of its products to also buy others.
84) The practice of________Blank, which can affect the normal operation of the free market and limit the flexibility of buyers, is disapproved of by the U.S. Justice Department.
Version 1
28
A) tying agreements B) just-in-time procurement C) quid pro quo D) supply partnerships E) reciprocity
85) Although not strictly illegal, the U.S. Justice Department disapproves of reciprocity because the practice A) gives an unfair advantage to smaller companies. B) gives an unfair advantage to larger corporations. C) reduces the amount of taxes paid by the parties involved. D) restricts the normal operation of the free market. E) encourages free trade.
86) If General Motors (GM) agrees to purchases Borg-Warner transmissions, and BorgWarner agrees to buy trucks and cars from GM, they would be demonstrating which type of buyer-seller interaction? A) exclusive dealing B) supply partnerships C) tying arrangements D) noncompetitive bidding E) reciprocity
87) A________Blank exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.
Version 1
29
A) supplier development agreement B) reciprocal arrangement C) shareholder relationship D) supply partnership E) strategic alliance
88)
A supply partnership is
A) an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors. B) the illegal practice of refusing to purchase a seller's products unless the seller agrees not to purchase that product or any similar products from any other buyer. C) a supplier that requires a buyer purchasing some products from it to also buy others. D) a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of or increasing the value of products and services delivered to the ultimate consumer. E) the practice whereby a seller requires the purchaser of one product to also buy another item in the line.
89) A supply partnership exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of A) putting competitors of both buyers and sellers out of business. B) lowering costs and increasing profits for the supplier. C) lowering costs or increasing value of products or services to the ultimate consumer. D) creating a single channel of distribution. E) creating an exclusionary relationship from all other buyers and sellers.
90) Milsco Manufacturing has a supply partnership with its buyer Harley-Davidson to provide motorcycle
Version 1
30
A) motors. B) braking systems. C) transmissions. D) seats. E) wheels.
91)
Milsco Manufacturing emphasizes
A) signing lifetime contracts with suppliers to demonstrate its loyalty to them. B) supply partnerships when designing products for its customers. C) reciprocity arrangements with its customers so that each can maximize profit. D) co-branding as a form of supply partnerships with customers. E) extending health care benefits to its suppliers' employees as a result of the Affordable Care Act.
92) Dell custom-orders the microprocessors for its XPS and Alienware laptop lines from Intel, which works with Dell to minimize costs for each type of chip while maximizing quality, ultimately giving customers good value for their money. This is an example of a A) symbiotic partnership. B) make-buy decision. C) reciprocal agreement. D) supply partnership. E) tying arrangement.
93) Walmart asked that Procter & Gamble (P&G) electronically link to its computerized cash register scanning system, allowing for direct electronic ordering and replenishing for all of its stores. This way, Walmart can tell P&G what merchandise it needs, along with how much, when, and to which store to deliver on a daily basis. Walmart is engaged in
Version 1
31
A) ISO 9000 certification. B) ISO 14000 certification. C) a supply partnership. D) sustainable development. E) cause marketing.
94) Purchasing that aims to integrate environmental considerations into all stages of an organization's buying process with the goal of reducing the impact on human health and the physical environment is referred to as A) ecological procurement. B) sustainable procurement. C) green marketing. D) supplier partnership. E) stakeholder procurement.
95) Because many companies are concerned with the depletion of natural resources, supply partnerships often include provisions for A) green marketing. B) regulatory exemptions. C) stakeholder procurement. D) ecological procurement. E) sustainable procurement.
96) Starbucks purchases from coffee growers located in more than 20 countries. It pays the coffee farmers a fair price for the beans, the coffee is grown in an ecologically sound manner, and Starbucks invests in the farming communities where its coffees are produced. This is an example of
Version 1
32
A) green marketing. B) ISO 14000 certification. C) sustainable procurement. D) ecological procurement. E) cause marketing.
97) Recently, Matt Kistler, a senior vice president at Walmart, claimed the company was making progress on achieving three major goals: (1) to be supplied by 100 percent renewable energy, (2) to create zero-waste, and (3) to increase the sale of renewably produced products. Walmart is focusing on A) using ecological buying centers. B) complying with government regulations. C) engaging in cause marketing. D) increasing its sustainable procurement. E) meeting ISO 9000 standards.
98) The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers is referred to as A) the consumer purchase decision process. B) the industrial purchase procedure. C) organizational buying behavior. D) the offering purchase framework. E) the sustainable procurement process.
99)
Organizational buying behavior is
Version 1
33
A) the actions consumers take in purchasing and using products and services, including the mental and social processes that come before and after the action. B) the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers. C) purchase behavior based upon derived demand. D) determining what to purchase and the quantity to purchase based upon the derived supply. E) the process that organizations use to purchase the raw materials and tools used in the manufacturing of a product.
100) In organizations, the buying function involves gathering and screening information about products and services, prices, and suppliers, which are known as A) agents. B) procurement sources. C) resellers. D) shops. E) vendors.
101) Organizational buying behavior is similar to consumer behavior in some ways and different in others. Common to both is that they A) use the same five stages in the buying decision process. B) use formal vendor ratings when choosing among alternative brands. C) are affected by derived demand. D) have virtually unlimited options for suppliers. E) rely on gatekeepers to control product information.
102) Which of these possible characteristics of consumer buying is least likely to enter into an organizational buying decision?
Version 1
34
A) comparison of product performance with expectations B) purchase decisions based on the highest overall evaluation C) alternatives evaluated on important criteria D) information gathered from internal and external searches E) problem recognition triggered by self-actualization motives
103) Organizational buying behavior is similar to consumer behavior in some ways and different in others. One key difference is that in the organizational buying process, A) only four stages are used. B) fewer individuals are involved. C) firms are not affected by derived demand. D) the postpurchase evaluation behavior is more formalized. E) there is less reliance on gatekeepers to control product information.
104)
The first stage in the organizational buying decision process is A) information search. B) antecedent states. C) alternative evaluation. D) purchase decision. E) problem recognition.
105) The sales department's identification of an improvement made to a competitor's product would occur during which stage of the organizational buying decision process?
Version 1
35
A) supplier search B) alternative evaluation C) problem recognition D) purchase decision E) information search
106) Once an organization passes through the problem recognition stage of the organizational buying decision process, it reaches the________Blank stage. A) information search B) value analysis C) alternative evaluation D) purchase decision E) behavioral learning
107) At which stage of the organizational buying decision process would design and production engineers draft specifications? A) problem recognition B) information search C) alternative evaluation D) purchase decision E) value analysis
108) At which stage of the organizational buying decision process would purchasing and engineering personnel visit potential suppliers to assess their facilities, production capability, and quality control?
Version 1
36
A) problem recognition B) information search C) purchase decision D) alternative evaluation E) postpurchase behavior
109) At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers? A) problem recognition B) information search C) alternative evaluation D) purchase decision E) postpurchase behavior
110) At which stage of the organizational buying decision process would a firm select a supplier, negotiate terms, and award a contract? A) problem recognition B) information search C) purchase decision D) purchase review E) alternative evaluation
111) During the next-to-last stage of the organizational buying decision process, the organization
Version 1
37
A) drafts specifications. B) formally rates suppliers that were used. C) evaluates supplier facilities. D) awards the contract. E) recognizes a need for change.
112) Which of these is indicative of the purchase decision stage of the organizational buying decision process? A) The purchase decision is usually quick once the information search has been completed. B) After the bid is submitted and even once accepted, terms must still be negotiated. C) Even if several vendors make it onto the bidder's list, ultimately only one supplier is chosen. D) If a supplier on the bidder's list is not selected, it is rarely told the reason it was rejected. E) Once an agreement has been formally reached, neither the buyer nor the seller is permitted to make changes to the terms of the contract.
113)
What is the last stage of the organizational buying decision process? A) information search B) postpurchase behavior C) alternative evaluation D) purchase decision E) purveyor review
114) Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations, the________Blank stage is more formal, often involving a vendor rating system.
Version 1
38
A) problem recognition B) information search C) purchase decision D) postpurchase evaluation E) performance review
115) Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations,________Blank becomes more important for deadlines and quality control. A) choice variety B) a supplier audit C) the purchase decision D) supplier capability E) a performance review
116) General Electric manufactures electric motors for its clothes dryers. The firm uses a formal vendor rating system to evaluate suppliers and notify those whose parts did not meet quality standards. If a supplier fails to correct the problem, GE will drop it as a future supplier. Which stage in the organizational buying decision process would GE make this evaluation? A) purchase decision stage B) information search stage C) postpurchase behavior stage D) alternative evaluation stage E) problem recognition stage
117) The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the
Version 1
39
A) gatekeeper. B) buying center. C) purchasing department. D) procurement committee. E) acquisition office.
118)
A buying center is
A) an online trading community that brings together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services. B) the department within a firm responsible for the logistics of placing, tracking, and delivering orders to other departments within the firm. C) the department within a firm responsible for the logistics of placing, tracking, and delivering orders to ultimate consumers. D) the group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision. E) the department within a firm that allows purchases to be made from a centralized location from multiple vendors at the same time.
119) Large multistore chain retailers such as 7-Eleven convenience stores, Safeway, and Target use a highly formalized buying center that is referred to as a A) buying task force. B) buying committee. C) merchandise procurement center. D) purchasing department. E) purchasing control system.
Version 1
40
120) Marketers need to understand their customers’ buying centers. A series of questions can be used to facilitate this process. Which question would be the least useful when trying to understand the operations of a buying center? A) Which individuals are in the buying center for the product or service? B) What is the relative influence of each member of the group? C) What are the buying criteria of each member? D) How does each member of the group perceive our company, our products and services, and our salespeople? E) What criteria were used to select the members of the buying center?
121) Which statement most closely describes the people in the buying center of a mediumsized manufacturing plant? A) The composition of the buying center remains constant over long periods of time. B) The buying center avoids cross-functional teams whenever possible. C) The individuals in the buying center may vary depending on the specific item being purchased. D) The purchasing manager is an occasional member of the buying center. E) The participants are also part of a buying committee.
122) In an effort to make better and more efficient purchase decisions, the Ford Motor Co. includes input from various people, depending on the purchase situation. Individuals may include key personnel from several departments, including research and development, finance, marketing, shipping, and sales. This is a description of Ford's A) acquisition committee. B) sustainable procurement department. C) purchasing unit. D) buying center. E) buying task force.
Version 1
41
123) To lower costs and reduce manufacturing time, Michelin has people work together on important purchases. These people include individuals in the roles of buyers, deciders, gatekeepers, and others, as needed. This type of cross-functional group is known as a A) purchasing committee. B) sustainable procurement panel. C) buying center. D) supply partnership. E) purchasing task force.
124)
All of these are roles in a buying centerexcept which? A) evaluators B) deciders C) gatekeepers D) influencers E) users
125) The people in the organization who actually consume the product or service are referred to as________Blank, which is one role in the buying center. A) consumers B) deciders C) buyers D) influencers E) users
Version 1
42
126) On a visit to Conner Industries, a West Plains Band Saw salesperson heard a production employee saying, "This band saw has a 36-inch wheel that could really save us time, and with its adjustable height, it can be operated by someone tall like me as well as by our shorter workers. I bet this would speed up my production time by 10 percent. Why don't we order this band saw?" The person the salesperson heard giving input has which buying center role? A) purchasing agent B) decider C) buyer D) user E) motivator
127) Becca, an office manager for a small construction company, met with representatives from Xerox and Minolta, along with the president and the accountant, to compare options for a new copier for the office. Since she made most of the copies, Becca wanted to see the features of the machines, though her boss would have to approve the final purchase. Becca has what role in the buying center? A) purchasing agent B) decider C) buyer D) user E) motivator
128) In a buying center,________Blank affect the buying decision, usually by helping define the specifications for what is bought. A) gatekeepers B) deciders C) buyers D) influencers E) users
Version 1
43
129)
Within the buying center, influencers are people who
A) have the formal authority and responsibility to select the supplier and negotiate the terms of the contract. B) control the flow of information in the buying center. C) affect the buying decision usually by helping define the specifications for what is bought. D) have the formal or informal power to select or approve the supplier that receives the contract. E) actually use and evaluate the product or service.
130) A computer company salesperson invites the IT managers of its top 10 customers (in terms of dollar sales) to view a demonstration of the firm's new product line, so the salesperson can obtain their opinions regarding various options and configurations that could be offered. These IT managers are most likely to be the________Blank of their organizations' buying centers. A) gatekeepers B) influencers C) reciprocity arrangers D) buyers E) users
131) In a buying center,________Blank have formal authority and responsibility to select the supplier and negotiate the terms of a contract.
Version 1
44
A) buyers B) gatekeepers C) adopters D) influencers E) users
132) The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the________Blank for Ingram. A) user B) gatekeeper C) influencer D) buyer E) decider
133) Lara assumed the________Blank role in the buying center when she shook the salesperson's hand and said, "Ms. Hron, we would like to accept your bid. I'll expect 48 boxes of ring shank nails to be delivered by November 8, and we will pay the agreed-upon price of $21.74 per box." A) gatekeeper B) broker C) buyer D) influencer E) user
134) In a buying center,________Blank have the formal or informal power to select or approve the supplier that receives the contract.
Version 1
45
A) gatekeepers B) deciders C) buyers D) influencers E) users
135)
Within the buying center, deciders are people who
A) have the formal authority and responsibility to select the supplier and negotiate the terms of the contract. B) control the flow of information in the buying center. C) have the formal or informal power to select or approve the supplier that receives the contract. D) affect the buying decision usually by helping define the specifications for what is bought. E) actually use and evaluate the product or service.
136)
For routine orders within the buying center, the decider is usually the A) buyer or purchasing manager. B) CEO. C) COO. D) head of R&D. E) customer.
137) An IT engineer specifies the type of electronic shopping cart to be used on the company's new website. The engineer also chooses the supplier that receives the contract to provide the software. In the buying center, this person is the
Version 1
46
A) gatekeeper. B) decider. C) broker. D) influencer. E) user
138) People who control the flow of information in the buying center, such as technical experts and secretaries, can keep salespeople and information from reaching others in the buying center and are referred to as A) deciders. B) obstructionists. C) gatekeepers. D) filters. E) influencers.
139) A sales representative for a pharmaceutical company visits the doctor's office, hoping to explain a new drug to the doctor. However, the office receptionist explains that the doctor is with patients and will not be able to see the sales rep. The receptionist is acting as a(n) A) user. B) influencer. C) buyer. D) decider. E) gatekeeper.
Version 1
47
140) Cassidy is part of the buying center for a large manufacturer. Her field of expertise is logistics, and she is responsible for choosing transportation providers for the company. A sales representative for Yellow Roadway, a successful trucking firm, regularly buys Cassidy's assistant lunch. The representative does this because he views the assistant as a(n)________Blank and wants to be sure that information about his company reaches Cassidy. A) gatekeeper B) decider C) influencer D) obstructionist E) power broker
141) Beth is part owner of a chain of auto repair shops. Her company was considering adding tire sales in some of its facilities, and several people were slated to meet to discuss the idea. Beth gathered information about possible distributors. Her son had been laid off from a job with one of them, so she removed this company from the group she was preparing to present to the others. Here, Beth was acting in what role in the buying center? A) gatekeeper B) decider C) user D) obstructionist E) power broker
142) Mark manages a small family-owned amusement park. He believes the park can increase its profits if its owners will buy three food concession trailers. Mark has contacted three dealers of such trailers, which come fully customized to user specifications. After receiving three bids, Mark concluded that Century Industries has the best offer. He will present only the Century Industries information to the family tomorrow. What buying center roles does Mark perform?
Version 1
48
A) gatekeeper and buyer B) decider and user C) buyer and decider D) influencer and buyer E) influencer, gatekeeper, and decider
143) Researchers who have studied organizational buying identify three types of buying situations, called________Blank, which include new buy, modified rebuy, and straight rebuy. A) purchase criteria B) buy classes C) buying centers D) consideration sets E) purchase hierarchies
144)
The three types of organizational buy classes are A) industrial, reseller, and government. B) consumer products, industrial goods, and services. C) users, influencers, and deciders. D) straight purchase, barter, and countertrade. E) new buy, straight rebuy, and modified rebuy.
145)
Buy classes refer to the three types of organizational buying situations:
Version 1
49
A) buy, lease, and rent. B) new buy, make, and reprocess. C) manufacturing contracts, consulting contracts, service contracts. D) new buy, straight rebuy, and modified rebuy. E) new buy, refurbish, and used buy.
146) The buying situation where an organization is a first-time buyer of the product or service is referred to as a(n) A) initial buy. B) new buy. C) preliminary buy. D) straight rebuy. E) modified rebuy.
147) A buy-class situation affects buying center tendencies in different ways. If there are many people involved, the problem definition is uncertain, and the time required for a decision is long, the buy-class situation is most likely a A) standard buy. B) straight rebuy. C) conditional rebuy. D) modified rebuy. E) new buy.
148) A buy-class situation affects buying center tendencies in different ways. If there is one person involved, the problem is well-defined, and the buying objective is to find a low-priced supplier, the buy-class situation is most likely a
Version 1
50
A) modified buy. B) straight rebuy. C) conditional rebuy. D) new buy. E) standard buy.
149) A buy-class situation affects buying center tendencies in different ways. If there are two or three people involved, the problem is minor modification, and the suppliers considered are the present, the buy-class situation is most likely a A) conditional buy. B) straight rebuy. C) new buy. D) modified rebuy. E) standard buy.
150) A buy-class situation affects buying center tendencies in different ways. If the buying objective is to find a good solution, the suppliers considered are both new and present, and the buying influence includes technical and operating personnel, the buy-class situation is most likely a A) modified buy. B) new buy. C) straight rebuy. D) make-buy. E) standard buy.
151)
If a purchase is a new buy for a manufacturer, the seller should expect
Version 1
51
A) specifications to be changed many times before the buy is completed. B) a lot of conflict. C) many people to be involved in the purchase decision. D) to have to do some favors for the decision makers. E) to receive confirmation of a contract quickly.
152)
If a purchase is a new buy for a manufacturer, the seller should
A) expect to wait a long time for a buying decision to be reached. B) neutralize the typically high levels of conflict. C) maintain flexibility, since specifications are likely to be changed several times before the buy is completed. D) be prepared to do some favors for the decision makers. E) expect to be the only supplier being considered.
153) At the weekly meeting for Choice Hotels, the marketing manager said, "We need an inexpensive creative way to increase awareness of our hotels among people who travel by automobile. To do that, I want to find a different advertising medium that the other hotel chains are not using now." The purchase of this advertising on an alternative medium would be an example of a(n) A) new buy. B) straight rebuy. C) converted rebuy. D) modified rebuy. E) initial buy.
154) A reorder of an existing product or service from a list of acceptable suppliers is referred to as a
Version 1
52
A) new buy. B) straight rebuy. C) modified rebuy. D) standard reorder. E) make-buy.
155) An assistant heard his supervisor in the supply room yell, "Call Crate & Barrel. We need another case of its large coffee mugs for the conference next week." The supervisor was asking the assistant to make a A) new buy. B) straight rebuy. C) modified rebuy. D) make-buy. E) standard reorder.
156) The department’s administrative assistant orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of a A) new buy. B) straight rebuy. C) modified rebuy. D) make-buy. E) standard reorder.
157) In a________Blank situation, users, influencers, or deciders in the buying center want to change product specifications, price, delivery schedule, or suppliers, though the product is largely the same.
Version 1
53
A) derived buy B) straight rebuy C) make-buy D) new buy E) modified rebuy
158) A university's marketing department typically purchases backpacks with its logo embroidered on them for all incoming freshmen. This year, because the faculty has heard complaints, the marketing chair wants to buy similar backpacks but find one that is a little more durable. This is an example of a A) new buy. B) straight rebuy. C) make-buy. D) modified rebuy. E) standard reorder.
159) A software company has updated its logo. It now needs to order new letterhead and business cards. This purchase would be a A) modified rebuy. B) straight rebuy. C) new buy. D) standard reorder. E) class buy.
Version 1
54
160) Figure 6-4 shows the three buy classes encountered by organizational buyers. Column A is referred to as a
A) modified rebuy. B) straight rebuy. C) new buy. D) standard reorder. E) class buy.
Version 1
55
161) Figure 6-4 shows the three buy classes encountered by organizational buyers. Column B is referred to as a
A) modified rebuy. B) straight rebuy. C) typical buy. D) standard reorder. E) new buy.
Version 1
56
162) Figure 6-4 shows the three buy classes encountered by organizational buyers. Column C is referred to as a
A) modified rebuy. B) straight rebuy. C) new buy. D) standard reorder. E) altered buy.
163)
A straight rebuy is________Blank while a modified rebuy is________Blank. A) an exchange; a resale B) a routine reorder; an exchange C) a first-time order; a routine reorder D) a changed order; a first-time order E) a routine reorder; a changed order
164)
Business-to-business buying over the Internet
Version 1
57
A) is nearly equivalent to consumer electronic commerce when measured by the total dollar value of all online transactions. B) is at least twice as large as consumer online buying when measured by the total dollar value of all online transactions. C) remains rare since face-to-face communication between a firm's sales force and its potential customers is so important. D) is impossible to estimate since companies will not share procurement information. E) has never been popular since it presents massive security risks for companies.
165)
Online buying in organizational markets is prominent because Internet technology A) allows companies to increase their innovation cycles. B) substantially increases brand loyalty. C) conveys timely information quickly. D) narrows the potential customer base for many products. E) eliminates marketing costs.
166) Online trading communities that bring together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services are referred to as A) webfronts. B) iCommerce. C) e-commerce marketspaces. D) e-marketplaces. E) X-changes.
167)
E-marketplaces are
Version 1
58
A) virtual or holographic purchasing marketspaces that allow manufacturers to estimate demand based upon different changes in environmental forces. B) websites that allow consumers to make direct purchases from a manufacturer rather than through a traditional retail outlet. C) online trading communities that bring together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services. D) computer simulations that allow manufacturers to estimate how much inventory to keep on hand based upon different purchasing scenarios. E) databases co-sponsored by the U.S. Department of Commerce and the World Trade Organization (WTO) that house all public access records for the purpose of aiding American and global businesses.
168)
Another name for an e-marketplace is a A) WebXChange. B) WebMart. C) W4B marketplace. D) C2C market forum. E) B2B exchange.
169)
E-marketplace can take two different formats, which are A) brick-and-mortar exchanges and click-and-mortar exchanges. B) privately owned trading communities and open-to-the-public trading communities. C) networked exchanges or public trading communities. D) independent trading communities or private exchanges. E) public exchanges and networked exchanges.
170) Small businesses benefit from independent________Blank like Amazon Business, PlasticsNet, Hospital Network.com, and TextileWeb.
Version 1
59
A) webfronts B) clicks-and-mortar C) e-marketplaces D) iMarkets E) integrated markets
171) For e-marketplaces, large companies tend to favor________Blank that link them with their network of qualified suppliers and customers. A) centralized markets B) decentralized markets C) private exchanges D) segregated markets E) independent trading communities
172) Independent e-marketplaces act as a neutral third party, provide an Internet technology trading platform, and provide________Blank market that enable exchanges between buyers and sellers. A) a centralized B) a deconsolidated C) a segregated D) an integrated E) a noncompetitive
173) Which statement about e-marketplaces that act as independent trading communities isfalse?
Version 1
60
A) These trading communities allow buyers to easily compare offerings from various sellers. B) Independent trading communities charge a fee for their service. C) Independent trading communities often consist of thousands of geographically dispersed buyers and sellers. D) This independent type of trading community is favored by large companies. E) Independent trading communities often operate in an environment where demand and supply fluctuations cause volatile prices.
174)
eBay Business Supply is an example of a(n) A) webfront operation. B) clicks-and-mortar store. C) e-marketplace. D) integrated market. E) iMarket.
175) In the construction industry, an independent trading community such as Buzzsaw.com or Cephren.com enables a general contractor to manage and coordinate the many suppliers, subcontractors, architects, and engineers necessary to complete a project. Buzzsaw.com and Cephren.com are examples of A) Webfronts. B) web chains. C) X-changes. D) e-syndicates. E) e-marketplaces.
176)
The predominant person-to-person trading community in the world is
Version 1
61
A) Facebook. B) Amazon. C) NASDAQ. D) Craigslist. E) eBay.
177) When a seller puts an item up for sale and would-be buyers are invited to bid in competition with one another, it is referred to as a(n) A) reverse auction. B) traditional auction. C) bidder's war. D) e-auction. E) Webfront auction.
178) When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a A) forward auction. B) reverse auction. C) Webfront auction. D) traditional auction. E) bidder's war.
179) Dell, Inc., sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a(n)
Version 1
62
A) traditional auction. B) reverse auction. C) bidder's war. D) I-auction. E) Webfront auction.
180)
What type of online auction includes one seller and many buyers? A) forward auction B) reverse auction C) traditional auction D) vertical auction E) bidder's war
181) In which type of auction is there an upward pressure on bid prices as more would-be buyers become involved? A) reverse auction B) horizontal auction C) vertical auction D) competitive auction E) traditional auction
182) An auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other is referred to as a
Version 1
63
A) vertical auction. B) reverse auction. C) horizontal auction. D) traditional auction. E) reciprocal auction.
183)
A reverse auction refers to an auction
A) where firms may sell their overstock—unused raw materials, packaging, and tools—to the highest bidder. B) in which a manufacturer offers to share its facilities, inventory, or services with other smaller firms that are invited to bid in competition with each other. C) in which a smaller manufacturer seeks to share the facilities, inventory, or services of a larger firm, and invites those firms to bid in competition with each other. D) in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other. E) where firms seek to purchase other firms' overstock—unused raw materials, packaging, and tools—while trying to find the lowest price possible.
184)
Reverse auctions A) are seller-initiated. B) benefit the sellers significantly more than the buyers. C) have an increasing number of buyers as the auction progresses. D) put downward pressure on prices. E) have many buyers.
185)
Reverse auctions
Version 1
64
A) are buyer-initiated. B) benefit the sellers significantly more than the buyers. C) have an increasing number of buyers as the auction progresses. D) do not allow sequential bidding. E) have many buyers at the start of the auction.
186)
What type of online auction includes one buyer and many sellers? A) forward auction B) reverse auction C) include D) traditional auction E) vertical auction F) bidder's war
187) In which type of auction is there a downward pressure on bid prices for the buyer's business as more would-be suppliers become involved? A) traditional auction B) vertical auction C) reverse auction D) horizontal auction E) reciprocal auction
188)
In a reverse auction, as the number of sellers increases, the price
Version 1
65
A) increases. B) stays the same. C) has no relation to the number of sellers. D) decreases. E) fluctuates depending on economic conditions.
189)
Which statement about Trek Bicycles isfalse?
A) Trek's funds a nonprofit organization called Dream Bikes to teach youth to fix and repair donated bikes. B) Trek has an extensive product line of bicycles. C) Trek has always been on the cutting edge, using the latest innovations in its designs. D) Trek views the bicycle as an important form of alternative transportation, not just as recreation. E) Trek's business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles, such as motorcycles and all-terrain vehicles (ATVs).
190)
All of these people are part of the Trek buying centerexcept which? A) Trek executives B) production workers C) representatives from research and development D) quality control employees E) a purchasing manager
191) Trek uses several organizational buying criteria to evaluate potential suppliers, including all of theseexcept which?
Version 1
66
A) price B) environmental impact C) warranties and claim policies D) quality E) delivery capabilities
192) When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only, but the other components are the same as existing saddles used on other bikes, this purchase situation is known as a A) new buy. B) straight rebuy. C) standard reorder. D) modified rebuy. E) make-buy.
193)
Describe the three types of organizational markets and give examples of each.
194)
What is the North American Industry Classification System (NAICS)?
195)
What are the characteristics of organizational buying behavior?
Version 1
67
196)
List seven common organizational buying criteria.
197) What are the five stages of the organizational buying process? Describe at least three differences from the consumer buying process.
198) What is a buying center? In what type of business would a buying center most likely be found?
199)
Identify and describe the five roles an individual can play in a buying center.
200) Consider how buy classes affect buying center tendencies in different ways. Describe the buy-class situations, and discuss the implications for the organization of each type of buy class. Version 1
68
201) What are the three types of organizational buying situations or buy classes? Give an example of each.
202)
Explain the differences between independent e-marketplaces and private exchanges.
203)
Differentiate between traditional and reverse auctions.
Version 1
69
Answer Key Test name: Chap 06_16e_Kerin 1) C 2) A 3) B 4) E 5) C 6) C 7) C 8) B 9) E 10) D 11) A 12) C 13) E 14) D 15) D 16) A 17) D 18) B 19) C 20) E 21) A 22) E 23) C 24) D 25) D 26) B Version 1
70
27) E 28) B 29) C 30) D 31) B 32) D 33) C 34) D 35) A 36) D 37) E 38) D 39) E 40) B 41) E 42) A 43) C 44) D 45) C 46) D 47) A 48) A 49) C 50) D 51) B 52) B 53) C 54) B 55) E 56) C Version 1
71
57) A 58) A 59) D 60) C 61) E 62) B 63) A 64) D 65) A 66) D 67) E 68) B 69) E 70) D 71) B 72) A 73) B 74) E 75) D 76) C 77) D 78) A 79) C 80) D 81) D 82) C 83) B 84) E 85) D 86) E Version 1
72
87) D 88) D 89) C 90) D 91) B 92) D 93) C 94) B 95) E 96) C 97) D 98) C 99) B 100) E 101) A 102) E 103) D 104) E 105) C 106) A 107) B 108) D 109) C 110) C 111) D 112) B 113) B 114) D 115) D 116) C Version 1
73
117) B 118) D 119) B 120) E 121) C 122) D 123) C 124) A 125) E 126) D 127) D 128) D 129) C 130) B 131) A 132) D 133) C 134) B 135) C 136) A 137) B 138) C 139) E 140) A 141) A 142) E 143) B 144) E 145) D 146) B Version 1
74
147) E 148) B 149) D 150) B 151) C 152) A 153) A 154) B 155) B 156) B 157) E 158) D 159) A 160) C 161) B 162) A 163) E 164) B 165) C 166) D 167) C 168) E 169) D 170) C 171) C 172) A 173) D 174) C 175) E 176) E Version 1
75
177) B 178) D 179) A 180) C 181) E 182) B 183) D 184) D 185) A 186) B 187) C 188) D 189) E 190) A 191) C 192) D
Version 1
76
CHAPTER 7 1)
Why has Amazon been aggressively pursuing the Indian market for a decade? A) U.S. sales have begun to decrease. B) Amazon believed it would be inexpensive to begin operations in India. C) There was no competition to speak of for Amazon's e-commerce channel in India. D) There were fewer restrictions in retailing in India. E) The India market offered significant growth potential.
2)
All of these are challenges faced by Amazon in its expansion into Indiaexcept which?
A) low rates of credit and debit card usage among Indian consumers, and many without bank accounts B) well-financed and capable domestic competitors in India C) political instability and social unrest in India D) underdeveloped technology requiring financial and technological investment in a localized cloud computing platform for India E) strict trade regulations that prevent owning inventory as well as direct sales to Indian consumers
3)
Which statement about the dynamics of world trade is most accurate?
A) Manufactured products and commodities account for only 25 percent of world trade. B) Services such as telecommunications, transportation, and banking are not included in calculations of world trade. C) The United States has replaced China as the biggest country in terms of world trade. D) Europe is the largest region involved in world trade. E) With the exception of 2020, a year with a global pandemic, the dollar value of world trade grew every year of the past decade.
Version 1
1
4)
Which statement about the dynamics of world trade is most accurate?
A) As the largest international trade partner, the United States accounts for 40 percent of world trade. B) World trade is calculated to include only the exchange of money for products or services. C) An estimated 35 percent of world trade involves countertrade. D) China, the United States, and Germany far outpace other countries in terms of imports and exports. E) Because of changes to NAFTA, North American intratrade is no longer counted in calculations of world trade.
5)
Which country is the world's leading exporter? A) United States B) China C) India D) Germany E) Japan
6)
Which country is the world's leading importer? A) United States B) China C) India D) Germany E) Japan
7) All nations and regions of the world do not participate equally in world trade. World trade flows reflect
Version 1
2
A) the influences of culture and language. B) the differences among industries, countries, and regions. C) interdependencies among industries, countries, and regions. D) the challenges of currency and exchange imbalances. E) the increasing importance of services verses products.
8)
A country's imports A) stimulate the imports of other countries. B) have no effect on its exports. C) have no relationship with its balance of payments. D) affect its exports and exports affect its imports. E) over time will decrease its overall economic activity.
9) The complementary nature of economic flows internationally, whereby imports stimulate exports and vice versa, is called________Blank and is one argument for free trade among nations. A) the balance of trade B) countertrade C) exchange trade D) the trade feedback effect E) global market trading
10)
The trade feedback effect is one argument for
Version 1
3
A) decreasing a nation's exports. B) free trade agreements. C) increased tariffs and quotas. D) international trade associations. E) decreasing a nation's imports.
11)
Countertrade refers to the
A) illegal agreement of one country to buy products exclusively from another. B) legal agreement of one country to buy and sell certain products exclusively from one another. C) practice of using barter rather than money for making global sales. D) sale of industrial goods from a brick-and-mortar outlet rather than directly from the manufacturer. E) use of foreign currency in making global purchases to minimize risk from currency fluctuation.
12) An estimated 10 to 15 percent of world trade involves________Blank, the practice of using barter rather than money for making global sales. A) cross trade B) countertrade C) exchange trade D) trade feedback E) market trading
13) Volvo of North America delivered automobiles to the Siberian police force when Siberia had no cash to pay for them. It accepted payment in oil, which it then sold for cash to pay for media advertising in the United States. This transaction is an example of
Version 1
4
A) a quota. B) countertrade. C) balance of trade. D) competitive advantage. E) a trade feedback effect.
14) The Malaysian government exchanged 20,000 tons of rice for an equivalent amount of Philippine corn. This transaction is an example of a A) countertrade. B) competitive advantage. C) balance of trade. D) quota. E) trade feedback.
15) Recipco and Tradaq are both companies that connect international companies who want to barter the products they make for the products they need without using cash or credit. Recipco and Tradaq assist international companies in making A) countertrades. B) quota exchanges. C) trading exchanges. D) balances of trade. E) WTO trade arrangements.
16) The monetary value of all products and services produced in a country during one year is referred to as the
Version 1
5
A) balance of trade. B) gross domestic product. C) national monetary reserve. D) monetary national balance. E) annual national product.
17)
Gross domestic product is the
A) monetary value of all products and services produced by a single manufacturer during one year. B) monetary value of all domestic exports of a nation during one year. C) monetary value of all products and services produced in a country during one year. D) monetary value of all domestic imports of a nation during one year. E) difference between all domestic exports and imports for any nation during the course of one fiscal year.
18)
The balance of trade is the A) difference between the monetary value of a nation's exports and imports. B) sum of the monetary value of a nation's exports and imports. C) monetary value of a nation's exports divided by its imports. D) surplus that occurs when nations engage in exporting. E) state of equilibrium when two neighboring nations participate in countertrade.
19)
When a country's exports exceed its imports,
Version 1
6
A) it incurs a deficit in its balance of trade. B) the result is the trade feedback effect. C) it will try to rebalance its overall economy. D) it will attempt to engage in a trade war. E) it incurs a surplus in its balance of trade.
20) When a nation's imports exceed its exports, it incurs a________Blank in its balance of trade. A) countertrade B) trade feedback effect C) deficit D) surplus E) tariff
21) Which statement about the relationship between the imports into the United States and the exports from the United States during the last 40 years is most accurate? A) Exports from the United States have declined, while import levels have remained about constant. B) The volume of both imports and exports has consistently decreased. C) Imports into the United States and exports have been about equal, indicating balanced trade. D) Exports have exceeded imports, indicating a continuing balance of trade surplus. E) Imports have exceeded exports, indicating a continuing balance of trade deficit.
22)
The four largest importers of U.S. products and services are
Version 1
7
A) Japan, Germany, China, and Canada. B) Canada, Mexico, China, and Japan. C) China, Brazil, Japan, and Germany. D) Mexico, Canada, Brazil, and China. E) England, Canada, Australia, and New Zealand.
23) ________Blank is the focus on creating economic, cultural, political, and technological interdependence among individual national institutions and economics. A) Internationalization B) Nationalism C) Populism D) Globalization E) Nationalization
24) Globalization is the focus on creating economic, cultural, political, and technological________Blank among individual national institutions and economics. A) wealth B) uniformity C) interdependence D) growth E) maturity
25) Five developments in the past decade have significantly influenced the landscape of global marketing. One of them is
Version 1
8
A) an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism. B) an increase in economic protectionism. C) a more aggressive attitude toward regulating international banking. D) a decrease in most countries' GDP and a renewal of nationalism. E) a rapid growth in new economic integration among countries.
26) Five developments in the past decade have significantly influenced the landscape of global marketing. One of them is A) the presence of a networked global marketspace. B) an elimination worldwide of tariff and quotas. C) a more aggressive attitude toward regulating international banking. D) a sharp decline in economic espionage. E) the rapid dissolution of all unpopular trade agreements.
27) The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as A) domestic imperialism. B) protectionism. C) blocked competition. D) import taxation. E) trade restriction.
28)
Arguments in favor of protectionism include that it
Version 1
9
A) helps reduce tariffs and quotas. B) limits the outsourcing of jobs. C) encourages economic integration with international partners. D) reduces prices for consumers. E) creates a more advantageous environment for a global economy.
29) The United States imposed a 35 percent tariff on Chinese tire imports in the hopes of sustaining U.S. jobs in tire manufacturing. This addition of tariffs is an example of A) imposing the rule of eminent domain. B) increasing ethnocentrism. C) enhancing domestic imperialism. D) increasing protectionism. E) slowing countertrade.
30)
Which issue raises concerns about the ethics of protectionism?
A) Competitive advantage grows out of continuous improvement. B) Small firms often succeed in foreign niche markets. C) Tariffs have declined from an average of 40 percent to less than 5 percent. D) Regional trade agreements may provide preferential treatment for member nations. E) Pan-European marketing strategies are possible due to greater uniformity in packaging standards.
Version 1
10
31) The question mark in Figure 7-2 above shows which result from the imposition of tariffs and quotas?
A) an increase in world trade B) a decrease in world trade C) a limit on exports D) an increase in exports E) countertrade
32) Government taxes on products or services entering a country that primarily serve to raise prices on imports are referred to as
Version 1
11
A) tariffs. B) quotas. C) WTO taxes. D) foreign excise taxes. E) trade subsidies.
33)
Tariffs refer to
A) government payments to companies or industries that primarily serve to create competitive advantage for domestic products. B) government taxes on products or services entering a country that primarily serve to raise prices on imports. C) a restriction placed on the amount of a product allowed to enter or leave a country. D) a minimum requirement for the purchase between two or more nations of products or services. E) a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.
34) The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering________Blank, lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market. A) boycotts B) quotas C) sanctions D) tariffs E) subsidies
35) The________Blank imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.
Version 1
12
A) boycotts B) quotas C) sanctions D) subsidies E) tariffs
36) U.S. citizens pay $3 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because A) both countries have suffered major financial crises due a severe trade imbalance. B) both countries have imposed tariffs on imported goods to protect their domestic markets. C) both countries have imposed limits on the quantity of these goods that can leave their respective domestic markets. D) both products are considered essentials and as a result are more heavily taxed. E) these products were purchased at a lower price from nations that currently are under governmental sanctions.
37) The Japanese government, under pressure from its domestic farm lobby, slapped government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being imported from China. These taxes Japan levied are referred to as A) WTO taxes. B) quotas. C) tariffs. D) excise taxes. E) subsidies.
Version 1
13
38) If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service a government tax of roughly 11 percent of the value of the product as a(n) A) bribe. B) tariff. C) subsidy. D) excise tax. E) quota.
39) Whirlpool asked the United States to impose________Blank on washing machine imports made by LG Electronics and Samsung Electronics, both South Korean companies, to raise the price of these products. Whirlpool accused these companies of selling below fair market value and receiving anticompetitive export subsidies from their governments, both of which could jeopardize American jobs. A) boycotts B) quotas C) sanctions D) tariffs E) embargoes
40) A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a(n) A) quota. B) tariff. C) WTO tax. D) subsidy. E) excise tax.
Version 1
14
41)
In international commerce, a quota refers to
A) a government tax on products or services entering a country that primarily serves to raise prices on imports. B) government payments to companies or industries that serve to lower costs and provide a competitive advantage to domestic industries. C) a restriction placed on the amount of a product allowed to enter or leave a country. D) a minimum requirement for the purchase of specific products or services between two nations. E) a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.
42) The world’s largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (like those that exist in the United States) on the amount of sugar that can be brought into the nation. The business moved to Mexico because of a(n)________Blank established by the U.S. government. A) tariff B) trade imbalance C) excise tax D) subsidy E) quota
43) Russia currently has a limit on pork of 400,000 metric tons that can be imported annually from any country. This restriction would be considered a(n) A) tariff. B) trade imbalance. C) excise tax. D) quota. E) subsidy.
Version 1
15
44) An institution that sets rules governing trade among its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is referred to as the A) League of Nations (LoN). B) World Trade Organization (WTO). C) Association for Commerce Equity (ACE). D) United Nations Board of Trade (UNBT). E) Global Better Business Bureau (BBB-G).
45)
The World Trade Organization (WTO) is
A) the world’s largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations. B) the world’s largest licensing institution responsible for the certification of products distributed to a global market. C) an institution that sets rules governing trade among its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. D) a multinational trade organization composed of the world’s wealthiest nations whose primary purpose is to aid in the economic growth of developing nations. E) a multinational trade organization comprised of the world’s wealthiest nations whose primary purpose is to promote free trade economies.
46) There are________Blank World Trade Organization countries, including the United States, which account for more than 98 percent of world trade.
Version 1
16
A) 31 B) 52 C) 97 D) 133 E) 164
47)
Which statement about the World Trade Organization (WTO) is most accurate?
A) The WTO acts as an agent in trade negotiations between its members and the remainder of the world. B) The 39 member countries of the WTO account for about 25 percent of world trade. C) The WTO attempts to mitigate trade wars between countries. D) The WTO uses legal scholars who can only issue nonbinding recommendations. E) The WTO was formed by the United Nations.
48)
Which statement about the World Trade Organization (WTO) is most accurate?
A) The World Trade Organization is a temporary institution. B) The 28 member countries of the WTO account for less than 40 percent of world trade. C) The WTO sets rules governing trade between its members and the rest of the world. D) The WTO uses panels of business professionals who can issue nonbinding recommendations. E) The WTO was formed by the major industrialized nations of the world.
49)
A trade war is initiated when
Version 1
17
A) the World Trade Organization issues fines to two or more corporations in a country. B) two or more companies attempt to undercut one another’s pricing strategy. C) a country begins to accept imports for a new product category or class. D) a country reduces tariffs for a particular product category or class. E) countries attempt to damage each other’s trade with excessive tariffs and quotas.
50) The European Union (EU) consists of 27 countries with about 445 million consumers. The EU has eliminated most barriers to the free flow of products, capital, and labor across its borders. Which country isnot a member of the EU? A) Poland B) Greece C) Ireland D) Switzerland E) Finland
51) The European Union is an economic and political union of________Blank member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders. A) 17 B) 20 C) 27 D) 30 E) 37
52) To eliminate the need to continually monitor currency exchange rates, 16 of the countries in the European Union (EU) have adopted a common currency, which is called the
Version 1
18
A) pound. B) franc. C) euro. D) mark. E) dollar.
53) To eliminate the need to continually monitor currency exchange rates,________Blank of the countries in the European Union (EU) have adopted a common currency called the euro. A) 11 B) 16 C) 20 D) 28 E) 32
54) The European Union (EU) has been beneficial to electronic commerce because it is no longer necessary to A) use multiple languages when settling accounts for purchases made across borders. B) continually monitor currency exchange rates among euro-adopting nations. C) trade with the former Eastern European communist countries. D) obey international e-trade regulations. E) use the American dollar as the economic standard.
55)
The EU has benefited firms in its member nations because
Version 1
19
A) it provides a safe haven in times of world economic crises. B) there is a common language advantage among EU consumers. C) most companies within the EU are engaging in strategic global partnerships. D) there is now a legally binding code of economic conduct. E) firms do not need to market their products and services on a nation-by-nation basis.
56)
The EU has benefited its member nations in part because A) there is a legally binding code of economic conduct. B) there is immunity against world recessions. C) there are fewer regulatory restrictions on transportation, advertising, and promotion. D) there is a common language advantage among EU consumers. E) most companies within the EU are engaging in strategic global partnerships.
57) The USMCA is a renegotiated version of NAFTA, which was designed to encourage free trade between A) North America, Central America, and South America. B) the United States and the European Union. C) member countries originally from NATO (North Atlantic Treaty Organization). D) the United States, Canada, and Mexico. E) the United States, Canada, and the United Kingdom.
58) The Regional Comprehensive Economic Partnership (RCEP), the largest trade group in the world, involves which countries?
Version 1
20
A) European B) African C) North American D) Asian and Pacific E) South American
59) When firms originate, produce, and market their products and services worldwide, it is referred to as A) acculturation. B) free trade. C) international branding. D) global competition. E) transactional exchange.
60)
Global competition exists when
A) a firm produces and markets its products domestically rather than globally. B) firms originate, produce, and market their products and services worldwide. C) two firms from two different countries compete for market share in a single domestic market. D) two or more firms from different nations combine their resources to market products in a single domestic market. E) the firm from one nation dominates the market for its product in every nation.
61) Coca-Cola and Pepsi-Cola are both now available in about 200 countries and territories across the world, making the soft drink industry an example of
Version 1
21
A) global competition. B) acculturation. C) free trade. D) global branding. E) transactional exchange.
62) In terms of the global marketplace, there are three primary types of companies:________Blank firms, international firms, and transnational firms. A) worldwide B) conglomerate C) intercontinental D) multinational E) cosmopolitan
63) The administrative, marketing, and manufacturing operations that many international firms, multinational firms, and transnational firms have around the world are often called A) subsidiaries. B) outlets. C) departments D) markets. E) holding companies.
64) In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and transnational firms. The key factor that distinguishes one from another is the
Version 1
22
A) firm’s financial capacity to take risks. B) willingness and ability to embrace diversity and cultural differences. C) firm’s level of customization in marketing efforts as strategy for individual global markets. D) relative position of the product or service in terms of its life cycle. E) relative size of the firm both in financial terms and in production capacity.
65) ________Blank firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country. A) A multidomestic B) A metropolitan C) An international D) A multinational E) A transnational
66) Generally speaking, a(n)________Blank firm markets its existing products and services in other countries the same way it does in its home country. A) multidomestic B) international C) multinational D) transnational E) intranational
67) Mars, America’s second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?
Version 1
23
A) an international firm B) a multidomestic firm C) a transnational firm D) a conglomerate firm E) a multinational firm
68) A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n) A) supernational firm. B) extranational firm. C) international firm. D) multinational firm. E) transnational firm.
69)
A multidomestic marketing strategy refers to the
A) strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. B) strategy used by firms that use the same product variations, brand names, and advertising programs for every country in which they do business. C) strategy used by firms that have as many different product variations, brand names, and advertising programs as countries in which they do business. D) strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm’s products. E) strategy currently used by most U.S. domestic firms that when entering a new international market, these firms offer only those products that require the least amount of product adaptation.
Version 1
24
70) Companies that use a(n)________Blank marketing strategy have as many different product variations, brand names, and advertising programs as countries in which they do business. A) ethnocentric B) multidomestic C) transnational D) global E) international
71) Lever Europe, a division of Unilever, markets Snuggle fabric softener. But in 10 European countries, it uses seven brand names, including Kuschelweich in German, Coccolino in Italy, and Mimosin in France. These products also have different packages, different advertising programs, and occasionally different formulas. From this information, we can assume that Lever Europe uses a(n)________Blank marketing strategy. A) ethnocentric B) transnational C) global D) international E) multidomestic
72) U.S. appliance manufacturers note that people in Northern Europe shop only once a week, so they need bigger refrigerators than Southern Europeans who shop daily. Furthermore, Northern Europeans insist that freezers should be on the top just as firmly as Southern Europeans want them on the bottom. Based on this, U.S. appliance manufacturers would more likely be successful if they used________Blank marketing strategy.
Version 1
25
A) a global B) a multidomestic C) a transnational D) a subsidiary E) an international
73) Disney used a(n)________Blank marketing strategy for its Disneyland Paris, particularly when it came to the eateries in the park. These restaurants featured recipes that were revised for local tastes, alcoholic beverages (not permitted in previous parks), and increased outdoor seating. A) global B) transnational C) multidomestic D) divisional E) international
74) A(n)________Blank firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences. A) divisional B) multidomestic C) international D) multinational E) transnational
75) The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as a(n)
Version 1
26
A) global marketing strategy. B) integrated marketing strategy. C) transnational marketing strategy. D) subsidiary marketing strategy. E) international marketing strategy.
76)
A global marketing strategy refers to the
A) strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business. B) strategy of transnational firms not to employ adaptive marketing techniques when there are cultural differences, but to redirect their marketing resources toward customer education. C) strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. D) global strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm’s products through a host nation’s local businesses. E) strategy currently used by most U.S. domestic firms that when entering a new international market, these firms offer only those products that require the least amount of product adaptation.
77)
Which type of firms would be most likely to use a global marketing strategy? A) multidomestic B) multinational C) international D) transnational E) open border
Version 1
27
78) A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is referred to as a(n) A) transnational brand. B) international brand. C) multinational brand. D) global brand. E) borderless brand.
79)
A global brand refers to
A) two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products. B) two or more international products that coincidentally share the same brand name but represent two completely unrelated products. C) a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. D) a brand that is essentially the same but that has minor adaptations made to meet the more specific needs of different nations. E) a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs.
80)
Which statement regarding global brands is most accurate?
A) A global brand has centrally coordinated marketing programs. B) A global brand is marketed under different names but uses identical ads for all markets. C) A global brand alters the product formulation or service for each geographical region. D) A global brand delivers varying benefits based on the GDP of each country. E) A global brand is a collaborative effort among several different transnational firms.
Version 1
28
81) A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. However, adaptations of global brands are made only A) if required by government regulations in the host market. B) in its initial introduction into a market and only until the brand is have achieved a baseline awareness. C) when there are domestic competitors causing brand confusion. D) when necessary to better connect the brand to consumers in different markets. E) when there is a serious drop in market share.
82) In Europe, North America, South America, and the industrialized nations of Asia, those 13 to 19 years old A) are more similar than different regarding their purchase behaviors. B) are becoming more similar, but still differ significantly in terms of fashion and design. C) are rebelling against the Americanization of fashion and culture. D) have very different tastes in fashions and music. E) are more influenced by Asian culture than European culture.
83) The appreciation of fashion, music, and a desire for novelty and trendier designs and images A) are preferences found more in American teenagers than in most other cultures around the world. B) actually begin at age 10, but begin to decline significantly as students enter high school. C) ironically are found more for teenagers who cannot afford to make those purchases than for those who can. D) are preferences of teenagers around the world regardless of where they live. E) are often established early among European teens and they typically linger well into adulthood.
Version 1
29
84) Based on a study of 6,500 teens in 26 countries, when asked what country had the most influence on their attitudes and purchase behavior, 54 percent of teens from the United States, 87 percent of those from Latin America, 80 percent of the Europeans, and 80 percent of those from Asia named A) the United States. B) Japan. C) the United Kingdom. D) France. E) China.
85) Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as A) transnational consumers. B) borderless consumers. C) international consumers. D) multinational consumers. E) global consumers.
86)
Global consumers are
Version 1
30
A) all potential consumers for any and all products or services regardless of cultural, ethnic, or national origins. B) customers within a nation who consider the entire world a single marketplace. C) consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services. D) consumer groups living in many countries or regions of the world that seek customized features and benefits from products or services that reflect their individual cultures. E) multinational organizations whose products incorporate raw materials, assembly, and distribution contributions from multiple nations before they are marketed.
87) Around the world, middle-class, youth, and elite markets that consume similar assortments of products and services, regardless of geographic location, are referred to as A) transnational consumers. B) borderless consumers. C) international consumers. D) multinational consumers. E) global consumers.
88) The use of________Blank as a tool for exchanging products, services, and information on a global scale is one of the developments that has affected world trade. A) buying centers B) Internet technology C) language translators D) tariff and quota policies E) multinational marketing strategies
89) Which statement about the emergence of a networked global marketspace is most accurate?
Version 1
31
A) Marketspace creates an unfair competitive environment for emerging nations. B) More business-to-consumer marketing is done on the Internet than business-tobusiness marketing. C) The most active participants in the networked global marketspace are companies in developing nations. D) All business in the networked global marketspace is conducted in English. E) A networked global marketspace enables the exchange of products, services, and information from sellers anywhere to buyers anywhere at any time and at a lower cost.
90) The clandestine collection of trade secrets or proprietary information about a company’s competitors is referred to as A) trade piracy. B) transnational fraud. C) economic espionage. D) competitive duplicity. E) transcorporate intelligence.
91)
Economic espionage is the clandestine collection of trade secrets or A) government economic information. B) military intelligence. C) government security information. D) banking information. E) proprietary information about competitors.
92)
The estimated cost of economic espionage to firms in the United States is estimated to be
Version 1
32
A) $10 billion per year. B) $150 billion per year. C) $600 billion per year. D) $900 billion per year. E) in excess of $2 trillion per year.
93)
The Economic Espionage Act
A) allows the World Court in The Hague to adjudicate trade disputes on behalf of UN members and requires the home country to impose any penalties. B) imposes a personal fine on a convicted U.S. citizen of up to $10 million. C) targets espionage activities that are commonplace in any industry that holds governmental contracts. D) makes the theft of trade secrets by foreign entities a federal crime in the United States. E) is well-intended in theory, but is virtually impossible to enforce.
94) The prescribed penalty for agents of foreign governments found guilty of economic espionage is A) up to 15 years in prison and fines up to $500,000. B) life in prison with the possibility of parole after 25 years. C) 25 years in prison and a $10 million fine. D) permanent expulsion from the United States. E) 30 years in prison and fines proportional to the damage caused.
95)
Cross-cultural analysis refers to the study of the
Version 1
33
A) subgroups within the larger, or national, culture with unique values, ideas, and attitudes. B) set of values, ideas, and attitudes that are learned and shared among the consumers of a country. C) similarities and differences among consumers in two or more nations or societies. D) buying behaviors within a given nation to identify similarities and differences among individuals. E) buying behaviors within a given nation that link a person’s actions to the cultural group with which he or she identifies most.
96) The study of similarities and differences among consumers in two or more nations or societies is referred to as A) market synthesis. B) cross-cultural analysis. C) international sociographics. D) transnational anthropology. E) multicultural ethnocentrism.
97) For the marketer, a thorough________Blank involves an understanding of and an appreciation for the values, customs, symbols, and language of other societies. A) market synthesis B) international sociographic study C) anthropological examination D) cross-cultural analysis E) ethnocentrism assessment
98) All of these should be understood and appreciated about another society for a thorough cross-cultural analysisexcept which?
Version 1
34
A) laws B) symbols C) values D) languages E) customs
99) Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as A) customs. B) ethics. C) values. D) culture. E) beliefs.
100)
Values are
A) personally or socially held core beliefs that are consistent within a given culture. B) the beliefs that dictate a person’s behavior, which are often derived from a religious code of conduct. C) personally or socially preferable modes of conduct or states of existence that tend to persist over time. D) the innate sense of what a person considers to be right or wrong in terms of his or her own conduct when dealing with others. E) those personality traits regarding honesty and integrity that have been passed down from generation to generation.
101)
The reverence that Japan shows toward its elderly is an example of that nation’s
Version 1
35
A) values. B) beliefs. C) customs. D) religion. E) cultural diversity.
102)
Which example best demonstrates a company’s appreciation of another country’s values?
A) American companies in Germany encourage the use of all types of credit cards. B) In Brazil, American companies are extremely careful to keep to a strict agenda and time schedule, even though an informal structure is preferred. C) Bath products are advertised by portraying intimate scenes between husbands and wives in countries where personal privacy is important. D) McDonald’s restaurants in India sell the Maharaja Mac with chicken patties rather than beef. E) An Italian magazine published a feature with a model wearing French earrings, which it said were worn by women in France.
103)
Which example best demonstrates a company’s appreciation for another country’s values?
A) A German company allows customers to make large purchases using lay-away (paying small amounts until the item is paid for and delivered). B) In Brazil, an appliance maintenance firm schedules service appointments allowing only 15 minutes of leeway for missed calls or no shows. C) In Japan, a spa owner created special exercise classes for husbands and wives. D) In India, a popular hamburger chain separated its dining area by color for people who wanted to eat beef and those who did not. E) In predominantly Muslim countries, a clothing company eliminated outdoor advertising placements showing scantily clad models.
Version 1
36
104) Almost all countries have some division of social class (upper, middle, and lower). The determining factor for the assignment to one of these classes may differ from country to country. For example, in the United States, the primary determining factor is occupation; in India, it is birthright; in China, it is geographical region and education; and in Singapore, it is income. These differences are best explained in terms of a country’s A) semiotics. B) legal system. C) ethnocentricity. D) religion. E) values.
105) What is considered normal and expected about the way people do things in a specific country is referred to as A) morals. B) ethics. C) values. D) customs. E) beliefs.
106)
Customs are
Version 1
37
A) what is considered normal and expected about the way people do things in a specific country. B) those actions or activities within a community that are unique or distinctly different from any other group. C) actions or behaviors that are repeated over time and carry a specific meaning to a unique group, nationality, or ethnicity. D) traditions among a group of people, a nation, or ethnicity that affect their purchase behaviors. E) what would be considered unusual or even unacceptable regarding personal behavior in a specific country.
107) In Japan, Japanese women give Japanese men chocolates on Valentine’s Day. This is an example of A) a custom. B) a value. C) a demographic pattern. D) a belief. E) psychographics.
108) KFC in Japan sells tempura crispy strips. In northern England, it serves gravy and potatoes. In Thailand, it offers fresh rice. In Holland, instead of potatoes, KFC offers customers a potato and onion croquette. In France, KFC sells pastries alongside its chicken. These examples illustrate that KFC exhibits an appreciation for the________Blank of other societies. A) demographics B) symbols C) sensitivities D) customs E) values
Version 1
38
109)
Which statement about bribery is most accurate?
A) Bribes, kickbacks, and payoffs offered to entice someone to commit an illegal or improper act are deemed corrupt in some cultures but not in others. B) The world’s major exporting nations have agreed to treat bribery of foreign government officials as a violation of trade agreements. C) Bribes paid to foreign companies are in some cases a tax-deductible expense in the United States. D) It is a crime for U.S. corporations to bribe an official of a foreign government or political party unless preapproved by the Federal Trade Commission. E) It is illegal for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
110)
The Foreign Corrupt Practices Act
A) makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country. B) has different levels of punishment based upon the relative economic power of the host nation. C) regulates only the behavior of U.S. businesses conducting business within the United States. D) makes the theft of trade secrets by foreign entities a federal crime in the United States. E) is a unilateral agreement the United States made with several developing nations.
111) The law, as amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country, is referred to as the
Version 1
39
A) International Law for Egalitarian Ethics Act. B) International Fair Practices Act. C) Law of International Equity Act. D) International Law of Ethical Business Practices Act. E) Foreign Corrupt Practices Act.
112)
Cultural symbols are A) ideas that can be protected by international copyrights. B) ideas that cannot be expressed by words or characters. C) things that represent values existing in a unique form within a nation. D) things that represent ideas and concepts. E) words that represent pictures or designs.
113) Because different societies often attach alternate meanings to things, these representations of ideas are referred to as A) universal symbols. B) cultural symbols. C) symbolic concepts. D) ideological representations. E) cultural representations.
114) A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people is referred to as
Version 1
40
A) back translation. B) symbiotics. C) semiotics. D) symbolic linguistics. E) cross-cultural analysis.
115)
Semiotics is
A) a field of study in marketing linguistics that identifies the connotative meanings behind words in order to create the most effective product or brand names. B) a field of study in marketing linguistics that identifies the connotative meanings behind words in order to create the most effective advertising messages. C) a field of study that examines the correspondence between symbols and their role in the assignment of meaning for people. D) a field of linguistics that translates words into internationally recognized symbols to help companies carry their product message across international boundaries. E) the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
116) A researcher studying the fact that in some nations the color black is a sign of mourning while in others white is a sign of mourning would be studying A) semiotics. B) semantics. C) semaphorics. D) cultural symbolism. E) cultural linguistics.
117) By skillfully using________Blank, global marketers can tie positive meanings to their products, services, and brands to enhance their attractiveness to consumers.
Version 1
41
A) cultural symbols B) visual icons C) trademarks D) brand names E) ethnic emblems
118) Tiffany & Company knows that Japanese are superstitious about the number four. As a result, Tiffany sells its fine glassware and china in sets of five, not four, in Japan. Tiffany uses its knowledge of________Blank to avoid connecting its products with the number four. A) trademarks B) visual icons C) cultural symbols D) brand names E) ethnic emblems
119) The Parthenon evokes strong feelings from consumers in Greece and is referred to as the “holy rock.” Coca-Cola marketers did not expect that this________Blank, when used in a marketing campaign that replaced the columns with Coke bottles, would arouse such an angry response in that country. A) cultural symbol B) anthropomorphic code C) back translation D) semantic representation E) civil analysis
120)
Canada has two official languages, which are
Version 1
42
A) English and Japanese. B) English and Spanish. C) English and French. D) English and Italian. E) English and German.
121) Even though there are about 100 official languages in the world, the three major languages used in global diplomacy and commerce are A) English, Japanese, and Chinese. B) English, French, and Spanish. C) Japanese, Spanish, and French. D) Japanese, Spanish, and English. E) Spanish, English, and Chinese.
122) The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors is referred to as A) locution. B) heuristics. C) transliteration. D) back translation. E) cross-cultural paraphrasing.
123) If you were responsible for marketing communications at a company that manufactures office supplies and had to provide product literature to be distributed in France, you would be wise to use________Blank, whereby you have someone translate your literature from American English into French, and then have someone else in France translate the French into American English.
Version 1
43
A) back talk B) back translation C) double talk D) double entendre E) double indemnity
124) A Tokyo shopkeeper would have been wise to use________Blank to verify the accuracy of the new sign in English he purchased for his dry cleaning business. The sign read, “Drop your pants here for best results,” which he did not know had another suggestive meaning to native speakers. A) cultural symbolism B) dialect transformation C) semantic analysis D) linguistic exchange E) back translation
125) A New York car wash owner wanted to open a car wash in Quebec, Canada. He hired a U.S. translator to create signage for the new venture and to design some simple advertising. It was not until the business was opened that he realized he should have used________Blank. His French signs actually said “car bath” instead of “car wash.” A) Esperanto B) back translation C) semiotics D) semantic symbolism E) linguistic exchange
126)
The belief that aspects of one’s culture are superior to another’s is referred to as
Version 1
44
A) cultural ethnocentricity. B) consumer ethnocentrism. C) cultural commitment. D) cross-cultural bias. E) cultural imperialism.
127) ________Blank is the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products. A) Country partisanship B) Cultural ethnocentrism C) Xenophobia D) Consumer ethnocentrism E) Nationalism
128)
Consumer ethnocentrism is the
A) belief that all products that are foreign-made are cheap and of poor quality. B) belief that one should only purchase products made by indigenous groups in developing countries. C) belief that all corporations are corrupt and consumers must look out for themselves. D) tendency to believe that the only products that are of true quality are those that are manufactured in one’s own country. E) tendency to believe it is inappropriate, even immoral, to purchase foreign-made products.
129) In Detroit, a woman came back from lunch to find a nasty note on her Toyota Camry about failing to support the American economy in purchasing her vehicle. The person who left the note is exhibiting
Version 1
45
A) cultural semiotics. B) the trade feedback effect. C) cultural ethnocentricity. D) protectionism. E) consumer ethnocentrism.
130) Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors? A) an analysis of cultural diversity within the country under consideration B) regulatory constraints regarding contracts, mergers, and partnerships C) measurement of consumer income in different countries D) an assessment of language differences including dialect variation E) political and ideological differences between the countries involved
131) A country’s communications, transportation, financial, and distribution systems are considered to be its A) capital improvements. B) fixed-asset base. C) economic infrastructure. D) geopolitical wealth. E) asset wealth.
132)
Economic infrastructure is
Version 1
46
A) a nation’s military-industrial complex. B) a country’s governmental services. C) the people and the wealth of a nation. D) a country’s communications, transportation, financial, and distribution systems. E) all of a country’s natural resources, whether or not they are currently being exploited.
133) Two-thirds of the commercial transactions in Russia involve nonmonetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there. These would best be described as constraints in the country’s A) capital infrastructure. B) political infrastructure. C) economic infrastructure. D) geopolitical system. E) financial exchange system.
134) In Latvia, only one six-lane highway exists, connecting its capital Riga with Moscow. Otherwise, the roads are two lanes and many are made of cobblestones or bricks. This limits the speed with which deliveries can be made and requires that delivery trucks be quite small. The road network in Latvia is an example of problems with a country’s A) capital improvements. B) fixed-asset base. C) geopolitical wealth. D) asset wealth. E) economic infrastructure.
Version 1
47
135) A global marketer selling consumer products and services must also consider what the________Blank is among a country’s consumers and how income is distributed to determine a nation’s purchasing power. A) buying capacity B) currency exchange risk C) purchasing incentive D) per capita income E) cost of living
136) A country’s income distribution is important because it gives a more reliable picture of a country’s________Blank than just per capita income alone. A) consumer tastes B) taxable income C) purchasing power D) discretionary income E) cost of living
137) Foreign countries with very low per capita incomes may still be attractive markets for some goods. To get a more reliable picture of a country’s purchasing power, a country’s________Blank must also be considered. A) total income B) total area C) geographical location D) culture E) income distribution
138)
Which of these is an important indicator of a nation’s increasing purchasing power?
Version 1
48
A) a growing proportion of middle-income households B) declining per capita income C) stable household incomes D) stable incomes for the wealthiest consumers E) a large gap developing or persisting between top incomes and lowest incomes
139) Generally, as the proportion of middle-income households in a country increases, the nation’s purchasing power A) levels off. B) decreases. C) increases. D) becomes less of an economic priority. E) becomes progressively unstable.
140) The price of one country’s currency expressed in terms of another country’s currency is referred to as the A) balance of price. B) currency exchange rate. C) money conversion factor. D) balance of payments. E) transfer payment.
141)
A currency exchange rate is the
Version 1
49
A) unit equivalency of all international currency. B) ratio of a nation’s basic unit of currency relative to the price of silver. C) ratio of a nation’s basic unit of currency relative to the price of gold. D) price of one country’s currency expressed in terms of another country’s currency. E) unit of wealth (gold, oil, diamonds, etc.) upon which a nation bases its national currency.
142) Fluctuations in the________Blank among the world’s currencies have a direct impact on the sales and profits made by global companies. A) production costs B) transportation C) reciprocity D) economic infrastructure E) exchange rates
143)
When foreign currencies can buy more U.S. dollars,
A) U.S. products are more expensive to foreign customers. B) U.S. products are more expensive to U.S. customers. C) U.S. products are less expensive to foreign customers. D) economists consider it an indicator of an impending long-term economic upturn. E) American consumers will buy in large quantities and stockpile in fear of an impending economic crisis.
144)
Which statement concerning currency exchange rates is most accurate?
Version 1
50
A) Short-term exchange rate fluctuations can have a significant effect on the profits of global companies. B) Fluctuations in exchange rates among the world’s currencies occur, but multinational companies are insulated from the affects because of direct investment. C) Exchange rate fluctuations are relatively rare, and when they occur, their effects are minimal. D) Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the euro. E) Exchange rate fluctuations may affect the financial sector but rarely reach the consumer.
145) Chrysler Corp. wanted to sell its Jeeps in Japan. The car was priced in U.S. dollars at about $19,000, but when it reached the Japanese car showrooms, its price was over 3,100,000 Japanese yen, and the Japanese could not afford to buy it. Its price was set without regard for the A) balance of price. B) currency exchange rate. C) reciprocity price. D) balance of payments. E) balance of trade.
146) Assessing the political and regulatory climate for marketing in a country or region of the world means not only identifying the current environment but also determining how A) it conducts its macrofinancing. B) its citizens budget their money. C) long a favorable or unfavorable climate will last. D) the country’s stocks are performing on the stock exchange. E) its population ranks in size compared to other countries.
Version 1
51
147) Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in________Blank and________Blank as a result of internal political strife, terrorism, and war. A) Russia; Poland B) France; Spain C) China; Japan D) the Middle East; Africa E) Germany; the United Kingdom
148)
The PRS Group maintains databases that can be accessed via a website to determine
A) changing demographic and psychographic data for each country in the registry. B) a country’s political risk ratings that are useful in comparing global marketing locations. C) the tariffs of each country and their relative effect on product and services sales. D) the rankings of American products relative to domestic equivalents in each country. E) changing social trends within different segments of the economy.
149) Due to some of the 11,000 other trade regulations that specify how goods are to be made and marketed, Japanese car safety rules effectively require all automobile replacement parts to be Japanese. Rules like these often function as A) economic infrastructure. B) trade barriers. C) universal codes. D) binding requirements. E) targets for bribery.
150) A firm’s profit potential and control over marketing activities________Blank as it moves from exporting to direct investment as a global market entry strategy. Version 1
52
A) become more stable B) increase C) level off D) decrease E) become more unpredictable
151) Once a company has decided to enter the global marketplace, it must select a means of market entry. One of the four general options is A) joint venture. B) accreditation. C) countertrading. D) cooperative. E) internationalization.
152) Once a company has decided to enter the global marketplace, it must select a means of market entry. All of these are the general optionsexcept which? A) licensing B) exporting C) direct investment D) joint venture E) cooperative
153) A firm’s profit potential and control over marketing activities increase as it moves from exporting to direct investment as a global market entry strategy. But so does a firm’s
Version 1
53
A) likelihood of long-term success. B) financial commitment and risk. C) vulnerability to social changes. D) need for a more educated workforce. E) need for a larger workforce.
154) As a firm changes its global market entry strategy from exporting to direct investment, all of these increaseexcept which? A) marketing control B) risk C) divestiture D) profit potential E) financial commitment
Version 1
54
155) According to Figure 7-5, point A would most likely represent which option for entering the global marketplace?
A) joint venture B) licensing C) exporting D) direct investment E) franchise
Version 1
55
156) According to Figure 7-5, point B would most likely represent which option for entering the global marketplace?
A) exporting B) joint venture C) direct investment D) franchising E) licensing
Version 1
56
157) According to Figure 7-5, point C would most likely represent which option for entering the global marketplace?
A) exporting B) joint venture C) direct investment D) licensing E) franchising
Version 1
57
158) According to Figure 7-5, point D would most likely represent which option for entering the global marketplace?
A) exporting B) joint venture C) direct investment D) franchising E) licensing
Version 1
58
159) According to Figure 7-5 above, points A and D would most likely represent ________Blank and ________Blank options, respectively, for entering the global marketplace.
A) joint venture; licensing B) licensing; exporting C) licensing; joint venture D) direct investment; licensing E) exporting; direct investment
160) A global market entry strategy in which a company produces goods in one country and sells them in another country is referred to as A) exporting. B) direct investment. C) countertrade. D) licensing. E) multinational marketing.
Version 1
59
161)
Exporting refers to a global market entry strategy in which a
A) company will sell its products in international markets but not in its own domestic market. B) company produces goods in one country and sells them in another country. C) company will manufacture its product in several countries at the same time using different brand names and slight product modifications. D) company will manufacture products specifically designed for nondomestic markets, but will sell those products to distributors that take title and resell the products to different companies around the world. E) product is made in one country, assembled in a second country, and ultimately marketed to a third country.
162) Which market entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals? A) exporting B) licensing C) joint venture D) direct investment E) franchising
163)
Indirect exporting refers to
Version 1
60
A) offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee. B) selling a firm’s domestically produced products in a foreign country without interference by that government. C) contracting with a foreign firm to manufacture products according to stated specifications. D) avoiding the use of additional parties when a firm sells its domestically produced products in another country. E) selling a firm’s domestically produced products in a foreign country through an intermediary.
164) When a firm sells its domestically produced products in a foreign country through an intermediary, it is referred to as A) direct exporting. B) indirect exporting. C) licensing. D) franchising. E) foreign assembly.
165) Indirect exporting occurs when a firm sells its domestically produced products in a foreign country A) in violation of a quota. B) without paying import tariffs. C) without paying export duties. D) through a joint venture. E) through an intermediary.
Version 1
61
166) Which type of exporting has the least amount of commitment and risk but will probably return the least profit? A) direct B) indirect C) licensing D) joint E) unilateral
167) A small Canadian winery located in British Columbia has developed a new table wine. It has no overseas contacts but wants to get its wine on the shelves in selected Asian and European markets where growth has been substantial in the past two years. Which type of exporting option would best suit this company? A) direct exporting B) licensing C) indirect exporting D) joint venture E) cooperative partnership
168) The U.S. motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the United States. Harley-Davidson uses A) direct exporting. B) licensing. C) contract manufacturing. D) indirect exporting. E) foreign assembly.
Version 1
62
169) U.S.-based Fran Wilson Creative Cosmetics attributes its success in Japan to a top-quality product, effective advertising, and a novel________Blank strategy, in which it uses Japanese distributors to reach beauty salons rather than department stores. A) joint venture B) licensing C) franchising D) indirect export E) direct investment
170) To avoid competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail venue? A) grocery stores B) flower shops C) beauty salons D) department stores E) gift stores
171)
Direct exporting refers to
A) offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee. B) contracting with a foreign firm to manufacture products according to certain specifications. C) a foreign country and a local firm investing together to create a local business. D) using additional parties when a firm sells its domestically produced goods in another country. E) a firm selling its domestically produced goods in a foreign country without intermediaries.
Version 1
63
172) Which global market entry strategy involves slightly more risk than indirect exporting for a company but also opens the door to increased profits? A) direct exporting B) licensing C) cooperative D) joint venture E) direct investment
173)
Most companies become involved in direct exporting when
A) foreign governments believe that they will benefit the most from allowing the entry of direct exports. B) emerging markets in foreign countries become economically viable. C) they believe their volume of sales will be sufficiently large and easy to obtain, thus making intermediaries unnecessary. D) the domestic market becomes saturated with competing products and services. E) evolving technologies in foreign countries come online.
174) is
The prominent global market entry strategy among small- and medium-sized companies
A) exporting. B) franchising. C) licensing. D) joint venture. E) direct investment.
175) When a U.S. airplane manufacturer sells its airplanes to a company in Germany without using intermediaries, it is referred to as
Version 1
64
A) direct exporting. B) indirect exporting. C) licensing. D) foreign manufacturing. E) foreign assembly.
176)
Licensing refers to
A) offering the right to a trademark, patent, trade secret, or other similarly valued items of intellectual property in return for a royalty or a fee. B) contracting with a foreign firm to manufacture products according to certain specifications. C) a foreign country and a local firm investing together to create a local business. D) having a company handle its own exports directly without intermediaries. E) exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm’s product abroad.
177) Offering the right to a trademark, patent, trade secret, or other similarly valued items of intellectual property in return for a royalty or a fee is referred to as A) direct exporting. B) indirect exporting. C) licensing. D) contract manufacturing. E) external branding.
178) Which of these is an advantage inherent in the use of licensing as a global market entry strategy?
Version 1
65
A) The licensor retains control of its product. B) The licensor is protected from creating a potential competitor. C) It provides an exemption from domestic trade regulations. D) There is an increase in potential profit compared with direct investment. E) The licensee gains information that allows it to start with a competitive advantage.
179)
All of these are advantages of licensingexcept which? A) the foreign country’s increased employment by having the product manufactured
locally B) the licensee’s access to information that allows it to start with a competitive advantage C) the lower risk to the company granting the license compared to direct investment D) the licensor’s ability to protect its brand name from harm E) the capital-free entry into a foreign country
180)
Which of these is a disadvantage associated with licensing? A) The licensee pays lower wages and sells at lower prices. B) The licensor may create its own competition. C) The foreign government dislikes it because it does not increase local employment. D) This is the most expensive and risky method for global expansion. E) The firm’s brand does not get international exposure.
181) Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?
Version 1
66
A) direct exporting B) indirect exporting C) licensing D) direct investment E) joint venture
182)
All of these are disadvantages of licensing except which?
A) The licensor has reduced potential profits compared to direct investment. B) The foreign country does not benefit from increases in local employment for product manufacturing. C) The licensor forgoes control of its product. D) Should the licensee prove to be a poor choice, the name or reputation of the company may be harmed. E) The licensor may be creating its own competition.
183) Select Service Partner (SSP) Group has operations in 30 countries involving food and beverage establishments, often in transit hubs such as airports and railway stations. SSP also operates Starbucks locations in airports in Finland, Sweden, and Norway. SSP pays Starbucks a royalty based on sales, as well as a fee for each store. In these instances, Starbucks is engaged in A) direct exporting. B) indirect exporting. C) contract manufacturing. D) foreign assembly. E) franchising.
184) A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as
Version 1
67
A) indirect exporting. B) direct ownership. C) joint ventures. D) licensing. E) direct exporting.
185)
One variation of licensing is referred to as A) direct investment. B) joint ventures. C) direct exporting. D) franchising. E) dual adaptation.
186) Yum! Brands, the restaurant division of PepsiCo, has 12,600 KFC restaurants abroad, with more than 3,700 restaurants in China. Many of the latter are locally owned and subject to a contractual agreement that allows the owners to operate the business under the established KFC brand name and according to specific rules. Yum! Brands is engaged in A) contract assembly. B) a joint venture. C) contract manufacturing. D) a partnership. E) franchising.
187) Yogen Früz is a successful chain of frozen yogurt shops originating in Canada. Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Früz shops in Dubai, Oman, Qatar, Bahrain, and Kuwait. Yogen Früz is engaged in
Version 1
68
A) dual adaptation. B) a joint venture. C) direct exporting. D) indirect exporting. E) franchising.
188)
A joint venture entails
A) offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or a fee. B) contracting with a foreign firm to manufacture products according to certain specifications. C) a foreign company and a local firm investing together to create a local business. D) having a company handle its own exports directly, but using intermediaries for importing. E) exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm’s products abroad.
189) A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as A) licensing. B) a joint venture. C) direct exporting. D) contract assembly. E) dual adaptation.
190) PepsiCo and the Strauss Group have together formed an Israeli business to market FritoLay’s, Cheetos, Ruffles, and Doritos in Israel. This global market entry strategy is known as
Version 1
69
A) franchising. B) a joint venture. C) licensing. D) direct investment. E) exporting.
191) The________Blank arrangement between Ericsson, a Swedish telecommunications firm, and CGCT, a French switch maker, enabled them together to beat out AT&T for a $100 million French contract. A) franchising B) licensing C) joint venture D) direct investment E) exporting
192)
A disadvantage of a joint venture arrangement when entering a new global market is that
A) intermediaries have the potential to harm the brand. B) the firm entering the foreign market must pay royalties to the other firm. C) one of the companies forgoes control over its product. D) the two companies may disagree about policies. E) this method is likely to provide the fewest subsidies from the host country’s government.
193) Starbucks and TATA Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India. The global market entry strategy is known as
Version 1
70
A) franchising. B) a joint venture. C) licensing. D) direct investment. E) exporting.
194)
Direct investment in as a global market entry strategy refers to
A) offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or a fee. B) contracting with a foreign firm to manufacture products according to certain specifications. C) a foreign company and a local firm investing together to create a local business. D) having a company handle its own exports directly, without intermediaries. E) a domestic firm investing in and owning a foreign subsidiary or division.
195) A global market entry strategy that entails a domestic firm investing in and owning a foreign subsidiary or division is referred to as A) licensing. B) local assembly. C) a joint venture. D) direct investment. E) local manufacturing.
196) When German car maker Mercedes-Benz owns and operates a factory in Vance, Alabama, that makes the M-Class sport-utility vehicle, this global market entry strategy is known as________Blank and represents the greatest commitment a company can make to international sales.
Version 1
71
A) licensing B) local assembly C) a joint venture D) direct investment E) local manufacturing
197)
Which form of entry into a foreign market requires the greatest commitment? A) direct exporting B) direct investment C) joint venture D) licensing E) indirect exporting
198)
One advantage of direct investment when entering a new global market is that
A) intermediaries have the potential to harm the brand. B) the firm entering the foreign market does not have to pay royalties to the government. C) the company forgoes control over its product. D) the firm gains and uses a better understanding of local market conditions. E) this method is likely to provide the fewest subsidies from the host country’s government.
199)
One disadvantage of direct investment when entering a new global market is
Version 1
72
A) intermediaries have the potential to harm the brand. B) the firm entering the foreign market must pay royalties to the government. C) the company forgoes control over its product. D) the financial commitments involved. E) this method is likely to provide the fewest cost savings relative to the other global market entry options.
200) European car companies Volkswagen and BMW own and operate car-manufacturing facilities in South Carolina and Alabama respectively that use American labor. This illustrates their use of A) direct exporting. B) direct investment. C) joint venture. D) licensing. E) indirect exporting.
201) Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now more than 3,700 restaurants in 650 Chinese cities, and KFC has a 40 percent market share of the entire fast-food industry there. Yum! Brands China owns and directly manages about 90 percent of its Chinese stores, so it appears that the company prefers________Blank in this market. A) licensing B) local assembly C) a joint venture D) direct investment E) local manufacturing
Version 1
73
202) Global companies have five strategies for matching products and their promotion efforts to global markets. The strategy of selling virtually the same product in other countries is referred to as A) product adaptation. B) product invention. C) brand adaptation. D) product extension. E) product integration.
203) As a general rule,________Blank seems to work best when the consumer target market for the product is alike across countries and cultures—that is, consumers share the same desires, needs, and use for the product. A) product adaptation B) product extension C) product integration D) product invention E) product customization
204) Samsung electronics, Gillette razors, and Nike apparel and shoes are being sold in the same form in many countries. This is an example of which type of global marketing product and promotion strategy? A) product customization B) product adaptation C) product extension D) product integration E) product invention
Version 1
74
205) GlaxoSmithKline PLC of Great Britain makes Breathe-Right nasal strips. It sells the same product in many countries because customers all over the world will use them in the same way. This is an example of which type of global marketing product and promotion strategy? A) product customization B) product extension C) product adaptation D) product invention E) product integration
206) Global companies have five strategies for matching products and their promotion efforts to global markets. Changing a product in some way to make it more appropriate for a country’s climate or preferences is an example of which type of global marketing product and promotion strategy? A) product extension B) product customization C) product adaptation D) product invention E) product integration
207) Alcohol-free Listerine Zero is popular in Muslim countries where alcohol is forbidden. This is an example of which type of global marketing product and promotion strategy? A) product adaptation B) product integration C) product invention D) product customization E) product extension
Version 1
75
208) KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an example of which type of global marketing product and promotion strategy? A) product extension B) product adaptation C) product customization D) product invention E) product integration
209) Global companies have five strategies for matching products and their promotion efforts to global markets. Designing a product to satisfy common needs across countries is which type of global marketing product and promotion strategy? A) product extension B) product customization C) product adaptation D) product invention E) product integration
210) Stanley Black & Decker developed the Snake Light flexible flashlight. Created to address a global need for portable lighting, the product became a best seller in North America, Europe, Latin America, and Australia. This is an example of which type of global marketing product and promotion strategy? A) product extension B) product customization C) product adaptation D) product invention E) product integration
Version 1
76
211) KFC has created many offerings for its menus in China to appeal to local tastes, including the “Dragon Twister,” which is a chicken wrap with Peking-duck sauce. This is an example of which type of global marketing product and promotion strategy? A) product extension B) product customization C) product adaptation D) product invention E) product integration
212) Even though Exxon adapts its gasoline blends for different countries based on climate, the promotion message is unchanged: “Put a Tiger in Your Tank.” This type of global promotional strategy is known as A) product extension. B) product customization. C) product adaptation. D) dual adaptation. E) dual integration.
213) Golden Beauty is a brand of sun-care products. Its advertising features dark tanning for northern Europeans, skin protection to avoid wrinkles among Latin Europeans, and beautiful skin for Europeans living along the Mediterranean Sea, even though the products are the same. This is an example of which type of global marketing product and promotion strategy? A) product extension B) message adaptation C) product adaptation D) dual adaptation E) dual integration
Version 1
77
214) Nescafé coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries. For example, Nescafé generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world. However, in Thailand, Nescafé is advertised as a way to relax from the pressures of daily life. This is an example of which type of global marketing product and promotion strategy? A) product extension B) product customization C) product adaptation D) dual adaptation E) dual integration
215) Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 7-6, Box A refers to which type of strategy?
A) product extension strategy B) communication adaptation strategy C) product adaptation strategy D) dual adaptation strategy E) product invention strategy
Version 1
78
216) Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 7-6, Box B refers to which type of strategy?
A) product extension strategy B) communication adaptation strategy C) product adaptation strategy D) dual adaptation strategy E) product invention strategy
Version 1
79
217) Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 7-6, Box C refers to which type of strategy?
A) product extension strategy B) product adaptation strategy C) dual adaptation strategy D) product invention strategy E) communication adaptation strategy
Version 1
80
218) Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 7-6, Box D refers to which type of strategy?
A) product extension strategy B) product adaptation strategy C) dual adaptation strategy D) product invention strategy E) communication adaptation strategy
Version 1
81
219) Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 7-6, Box E refers to which type of strategy?
A) product extension strategy B) product adaptation strategy C) dual adaptation strategy D) product invention strategy E) communication adaptation strategy
220) Adding to the complexity of global distribution is the need for________Blank, in addition to the channels within a foreign nation. A) parallel importing B) channels between nations C) communication adaptation D) product adaptation E) economic stability of the final consumer
221) Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. The step that moves the product from one country to another is the Version 1
82
A) seller. B) seller’s international marketing headquarters. C) channels within foreign nations. D) final consumer. E) channels between nations.
222) Channels of distribution in global marketing are often long and complex. The availability and quality of retailers and wholesalers as well as transportation, communication, and warehousing facilities are often determined by A) the seller and the exporter. B) a country’s stage of economic development. C) the seller’s international marketing headquarters and the channels between nations. D) channels between nations and the channels within the foreign nation. E) channels within the foreign nation and the foreign retailer.
223) When a firm sells a product in a foreign country below its domestic price or below its actual cost, the practice is referred to as A) loss-leader pricing. B) surplus marketing. C) dumping. D) second-market pricing. E) entrepreneurial pricing.
224)
In international trade, dumping refers to
Version 1
83
A) illegally disposing of unusable or damaged goods to avoid paying removal fees and/or taxes. B) a firm selling damaged or unsalable goods below their original production cost. C) a firm selling quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for seasonal goods. D) a firm selling quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for newer or more expensive models. E) a firm selling a product in a foreign country below its domestic price or below its actual cost.
225) The U.S. Commerce Department imposed additional duties of 31 to 250 percent on imported photovoltaic products from Chinese solar manufacturers after ruling that Chinese firms sold them in the United States below cost. The Commerce Department took this action in response to what it saw as A) tariff avoidance. B) countertrade. C) surplus marketing. D) underbidding. E) dumping.
226) A situation where products are bought in a lower-priced country from a manufacturer’s authorized reseller, shipped to higher-priced countries, and then sold through unauthorized retailers below the manufacturer’s suggested retail price is referred to as A) the black market. B) a gray market. C) dumping. D) a globalized market. E) parallel exporting.
Version 1
84
227)
A gray market is
A) the segment of products specifically designed for the need of older buyers. B) a once active and powerful market that is rapidly becoming the bottom of the barrel. C) a situation where products are sold through unauthorized channels of distribution. D) a pricing structure that is based upon haggling that is considered acceptable in some countries but not others. E) the willingness of one party to accept gifts in exchange for better prices or price allowances.
228)
Another term for a gray market is A) equivalent exporting. B) back-channel market. C) mature marketing. D) parallel importing. E) transparent market.
229) The Japanese manufacture tractors for rice paddies. They are smaller than most U.S. tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the United States through any authorized channels, yet they are available in the United States at prices below the manufacturer’s suggested retail price. These Japanese tractors are being sold A) through the gray market. B) under the table. C) over the counter. D) with bypassed global channels. E) by breaking the distribution monopoly.
Version 1
85
230) Before Apple’s iPhone X was officially for sale in China, it was being sold there. These phones were purchased in other countries like the United States and then resold by unauthorized vendors in China for up to 30% over the retail price. These products are considered to be part of A) under-the-counter sales. B) over-the-counter sales. C) the gray market. D) integrated global channels. E) breaking the distribution monopoly.
231) Mary Kay, Inc., can be classified as which type of company when marketing its products around the world? A) multinational firm B) transnational firm C) international firm D) global marketing firm E) multidomestic firm
232)
Since 1963, the guiding principle of Mary Kay, Inc., has been based on A) the Consumer Bill of Rights. B) the Golden Rule. C) caveat emptor. D) the American Marketing Association Statement of Ethics. E) maximizing profits so long as the firm stays within the rules.
233) Part of Mary Kay’s success in Asia-Pacific markets has been attributed to the company’s message of Version 1
86
A) high fashion and trend development. B) invention and novelty. C) durability and reliability. D) affordability and accessibility. E) female empowerment and entrepreneurship.
234) Name the three countries that dominate world trade. Which is the largest exporter? Which is the largest importer?
235) One global perspective on world trade views exports and imports as complementary economic flows. Explain this concept.
236)
Explain the trade feedback effect.
237)
Explain the concept of countertrade, and discuss its importance.
Version 1
87
238)
Give at least one argument for and one argument against protectionism.
239) If your primary motive was to raise prices on imports, would you use tariffs or quotas? Why would you want to do this?
240)
Describe the World Trade Organization (WTO) and its purpose.
241) In recent decades, a number of countries with similar economic goals have formed transnational trade groups or signed trade agreements for the purpose of promoting free trade. Describe the three discussed in the text.
242) Three types of companies populate and compete in the global marketplace. Identify and describe each type.
Version 1
88
243) Identify and describe the factors a company should consider in order to do a thorough cross-cultural analysis. In your answer, define cross-cultural analysis.
244) Why is it wise for global marketers to use back translation? Provide an example to support your answer.
245) Global marketing is affected by economic considerations. Identify the three steps that should be performed when scanning the global marketplace.
246) What is meant by the termeconomic infrastructure and how can this affect a firm’s plans to enter a global market?
Version 1
89
247)
Define a currency exchange rate and discuss its importance to global companies.
248) What are the market entry strategy options available to a company seeking to enter the global marketplace? How do they relate to each other in terms of profit potential, risk, financial commitment required, and marketing control?
249) Explain the difference between indirect exporting and direct exporting. What are the advantages and disadvantages of each approach?
250) Explain the difference between joint venture and direct investment market entry strategies. What are the advantages and disadvantages of each approach?
251) What are the product and promotion strategies available to a company seeking to enter the global marketplace? How do they relate to each other in terms of the same or adapted product and promotion?
Version 1
90
252)
Define licensing, cite its advantages and disadvantages, and explain what franchising is.
253)
Describe the elements in a global channel of distribution.
254)
Explain the difference between dumping and parallel importing.
Version 1
91
Answer Key Test name: Chap 07_16e_Kerin 1) E 2) C 3) E 4) D 5) B 6) A 7) C 8) D 9) D 10) B 11) C 12) B 13) B 14) A 15) A 16) B 17) C 18) A 19) E 20) C 21) E 22) B 23) D 24) C 25) B 26) A Version 1
92
27) B 28) B 29) D 30) D 31) B 32) A 33) B 34) D 35) E 36) B 37) C 38) B 39) D 40) A 41) C 42) E 43) D 44) B 45) C 46) E 47) C 48) E 49) E 50) D 51) C 52) C 53) B 54) B 55) E 56) C Version 1
93
57) D 58) D 59) D 60) B 61) A 62) D 63) A 64) C 65) C 66) B 67) A 68) D 69) C 70) B 71) E 72) B 73) C 74) E 75) A 76) C 77) D 78) D 79) C 80) A 81) D 82) A 83) D 84) A 85) E 86) C Version 1
94
87) E 88) B 89) E 90) C 91) E 92) C 93) D 94) C 95) C 96) B 97) D 98) A 99) D 100) C 101) A 102) D 103) E 104) E 105) D 106) A 107) A 108) D 109) E 110) A 111) E 112) D 113) B 114) C 115) C 116) A Version 1
95
117) A 118) C 119) A 120) C 121) B 122) D 123) B 124) E 125) B 126) A 127) D 128) E 129) E 130) C 131) C 132) D 133) C 134) E 135) D 136) C 137) E 138) A 139) C 140) B 141) D 142) E 143) C 144) A 145) B 146) C Version 1
96
147) D 148) B 149) B 150) B 151) A 152) E 153) B 154) C 155) C 156) E 157) B 158) C 159) E 160) A 161) B 162) A 163) E 164) B 165) E 166) B 167) C 168) D 169) D 170) C 171) E 172) A 173) C 174) A 175) A 176) A Version 1
97
177) C 178) E 179) D 180) B 181) C 182) B 183) E 184) D 185) D 186) E 187) E 188) C 189) B 190) B 191) C 192) D 193) B 194) E 195) D 196) D 197) B 198) D 199) D 200) B 201) D 202) D 203) B 204) C 205) B 206) C Version 1
98
207) A 208) B 209) D 210) D 211) D 212) C 213) B 214) D 215) A 216) C 217) E 218) C 219) D 220) B 221) E 222) B 223) C 224) E 225) E 226) B 227) C 228) D 229) A 230) C 231) B 232) B 233) E
Version 1
99
CHAPTER 8 1) Tom Cruise’sEdge of Tomorrow is an example of a successful movie that could have failed because A) too little money was spent on promotion. B) it was targeting the wrong target market segments. C) there was too little similarity between the original book and the screenplay. D) its original title was not popular with its prospective audience. E) too much time elapsed between promotions and its release.
2) Filmmakers want movie titles that use the same factors that make a good brand name. They must be without legal restrictions, memorable, appealing to consumers, and A) creative. B) familiar C) short. D) alliterative. E) easy to remember.
3) Generally, filmmakers want movie titles that are short, memorable, appealing to consumers, and without legal restrictions. These are titles that A) have the same factors that make a good brand name. B) produce the best recall. C) attract immediate attention. D) are safest, both financially and for brand purposes. E) appeal to multiple cultures.
4) Filmmakers want movie titles that use the same factors that make a good brand name. Ideally, they should Version 1
1
A) be appealing and memorable. B) create a sense of mystery. C) use devices such as alliteration or rhyme. D) create a sense of familiarity. E) be creative.
5) Movie studios use market research to reduce their risk of losses by hiring firms such as the National Research Group to conduct test screenings and tracking studies. Often, 300 to 400 prospective moviegoers are recruited to attend a "sneak preview" of a film before its release. After viewing the movie, the audience completes a survey to A) evaluate the quality of directing and producing. B) critique the title, characters, and ending. C) rate the performances of the individual actors and actresses. D) recall specific details of the plot and dialogue. E) compare the final film with the original script.
6)
The primary purpose of a "sneak preview" of a film before its release is to
A) rate the performances of the individual actors and actresses for possible Oscar nominations. B) rate the work of the director and producer for possible Oscar nominations. C) evaluate the effectiveness of product placements within the film. D) compare the final film to the original screenplay. E) identify necessary changes before final editing.
7) Which of these would be best used to forecast the opening weekend box office sales for a new movie?
Version 1
2
A) test screenings B) demographic analysis C) portfolio analysis D) advanced promotions E) tracking studies
8) Marketing researchers use tracking studies immediately before an upcoming film's release to A) identify any factual errors or inconsistencies in the story line. B) nominate specific actors or actresses for industry awards. C) forecast a movie's opening weekend box office revenues. D) select the best geographical location for the movie's premiere. E) make changes to the movie's release based upon professional critics' reviews.
9) Qualified members of tracking studies for a new movie are asked three key questions, one of which is A) How much would you be willing to pay for a ticket? B) Who is the target audience for this film? C) In your own words, what is the premise of the movie? D) Will you see the film? E) Do you recommend this film?
10) Movie studios use tracking studies in which prospective moviegoers are asked questions about an upcoming film release to help them forecast sales. This is an example of
Version 1
3
A) movie advertising. B) marketing research. C) tactical support. D) cross-movie research. E) movie audits.
11) Test screenings and tracking studies are examples of market research techniques used in the movie industry to A) estimate a production company's potential market share. B) identify prospective nominees for industry awards such as the Oscars. C) create an advance market for the movie's Blu-ray release regardless of whether it is successful in its theater release or not. D) identify possible story lines or plots for future movie ventures. E) reduce uncertainty and improve marketing actions.
12) The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions is referred to as A) marketing enquiry. B) strategic intelligence. C) data mining. D) marketing tactics. E) marketing research.
13)
Marketing research is the
Version 1
4
A) process of systematically collecting and analyzing information in order to define a marketing problem. B) use of information technology to find objective solutions to a marketing problem. C) process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions. D) use of subjective data such as interviews and observation to complement empirical data obtained through the use of information technology. E) science of using observable human behavior in order to identify and solve marketing problems.
14) All of these are challenges marketers face when conducting marketing researchexcept which? A) whether consumers' actual purchase behaviors will match their stated interests or intentions B) whether consumers will reveal honest answers to questions about personal or status issues C) whether consumers will remember the brand they actually purchased in order to report it correctly D) whether consumers will accept a small gratuity for participating in a market research study for a new or existing product E) whether consumers will really know whether they are likely to buy a new product that they have never thought about before
15)
Which statement concerning marketing research is most accurate?
Version 1
5
A) The primary purpose of marketing research is to collect data for historical purposes. B) When collecting marketing research, people may be reluctant to tell you what you want to know. C) Marketing research, if done properly, will always result in a positive marketing result. D) People are just as able to give accurate information about products they have only heard about as those they have actually used. E) Among those people who participate in market research studies, there is an almost perfect correlation between a respondent's stated intentions and his/her actual buying behavior.
16) Grape-Nuts was one of the first cereals Post Cereal Co. ever marketed. It scores well in brand awareness studies, but recently its sales have been declining. Rather than assume the product was a "dog," the Grape-Nuts marketing manager decided Post should first A) update the flavor of the cereal by making it slightly sweeter. B) increase the amount spent on advertising and sales promotion. C) do marketing research to identify what needs were not being satisfied. D) hire additional salespeople who were younger and more assertive to contact grocery stores. E) realign Grape-Nuts as a "star" and increase production.
17) Members of the Book Promoters Association of Canada recently questioned what could be done to rejuvenate the Canadian book publishing industry. Some claimed the problem was that many Canadian bookstores had been replaced by Amazon.com. Others said the problem was stodgy advertising. Still others believed the problem was small budgets for marketing programs. The best way to identify the problem would be to use A) market analysis. B) marketing management. C) a marketing audit. D) marketing research. E) data mining.
Version 1
6
18)
A decision is a(n) A) premeditated selection resulting in a personal action. B) conscious choice to select an alternative that best reduces risk. C) conscious choice from among two or more alternatives. D) subconscious selection of the alternative most consistent with one's personal beliefs. E) unconscious choice selected from a subset of positive alternatives.
19)
In marketing, a conscious choice made from among two or more alternatives is a A) preference. B) paradigm. C) conclusion. D) paradox. E) decision.
20)
Decision making is the act of A) consciously choosing from among alternatives. B) consciously choosing an action that doesn't involve risk. C) subjectively selecting from a subset of positive alternatives. D) subconsciously selecting the alternative that is most consistent with one's personal
beliefs. E) subjectively selecting the most financially sound decision among two or more alternatives.
21)
The first step of the marketing research approach is to
Version 1
7
A) develop findings. B) define the problem. C) take marketing actions. D) collect relevant information. E) develop the research plan.
22)
After defining the problem, the next step of the marketing research approach is to A) develop findings. B) gather resources. C) take marketing actions. D) develop the research plan. E) collect relevant information.
23)
After developing the research plan, the next step of the marketing research approach is to A) develop findings. B) define the problem. C) take marketing actions. D) analyze the results. E) collect relevant information.
24)
The fourth of five steps in the marketing research approach is to A) develop findings. B) define the problem. C) take marketing actions. D) develop the research plan. E) collect relevant information.
Version 1
8
25)
The last step of the marketing research approach is to A) develop findings. B) define the problem. C) collect relevant information. D) develop the research plan. E) take marketing actions.
26) Setting research objectives and identifying possible marketing actions that might result from the research would take place during which step of the five-step marketing research approach? A) Collect relevant information. B) Develop the research plan. C) Develop findings. D) Obtain secondary data. E) Define the problem.
27) Specifying constraints, identifying data needed for marketing actions, and determining how to collect data would take place during which step of the five-step marketing research approach? A) Collect relevant information. B) Develop the research plan. C) Develop findings. D) Take marketing actions. E) Define the problem.
Version 1
9
28) Obtaining primary and secondary data would take place during which step of the fivestep marketing research approach? A) Collect relevant information. B) Develop the research plan. C) Develop findings. D) Take marketing actions. E) Define the problem.
29) Analyzing data and presenting the results of this analysis would take place during which step of the five-step marketing research approach? A) Collect relevant information. B) Develop the research plan. C) Develop findings. D) Take marketing actions. E) Define the problem.
30) Making recommendations, implementing those recommendations, and evaluating the results would take place during which step of the five-step marketing research approach? A) Collect relevant information. B) Develop the research plan. C) Develop findings. D) Take marketing actions. E) Define the problem.
Version 1
10
31)
According to Figure 8-1, what does A represent in the marketing research process?
A) Collect relevant information. B) Develop the research plan. C) Develop findings. D) Take marketing actions. E) Define the problem.
32)
According to Figure 8-1, what does B represent in the marketing research process?
A) Develop findings. B) Define the problem. C) Collect relevant information. D) Develop the research plan. E) Take marketing actions.
Version 1
11
33)
According to Figure 8-1, what does C represent in the marketing research process?
A) Define the problem. B) Collect relevant information. C) Develop the research plan. D) Develop findings. E) Take marketing actions.
34)
According to Figure 8-1, what does D represent in the marketing research process?
Version 1
12
A) Define the problem. B) Develop the research plan. C) Develop findings. D) Collect relevant information. E) Take marketing actions
35)
According to Figure 8-1, what does E represent in the marketing research process?
A) Take marketing actions. B) Define the problem. C) Develop the research plan. D) Collect relevant information. E) Develop findings.
36) Considering the five-step marketing research approach leading to marketing actions, the feedback loop A) is useful only to help a researcher better define the problem next time. B) is used to develop the research plan. C) is a form of primary research. D) is used to develop findings. E) consists of lessons learned that can improve each of the steps.
Version 1
13
37) After a bankruptcy, SwissAir was able to regroup and wanted to resume flying if it could regain at least 75 percent of its lost customers. It allocated $50,000 to determine the likelihood that its former customers would fly with the airline again and to find inexpensive methods to increase that probability. This represents which step in the marketing research approach? A) Define the problem. B) Develop the research plan. C) Collect relevant information. D) Develop findings. E) Take marketing actions.
38) Watch was a teen publication given out free to high school students, but the publication was unable to deliver the response rates to coupons or sample offers that its advertisers expected. Marketing researchers for its publisher developed a research plan, gathered information from teen focus groups, analyzed the findings, and recommended replacingWatch magazine withFuel for boys andVerve for girls. Producing gender-specific magazines would be considered which step in the marketing research approach? A) Define the problem. B) Develop the research plan. C) Collect relevant information. D) Take marketing actions. E) Develop findings.
39)
There are two key elements when defining a marketing research problem. One of these is
Version 1
14
A) specify constraints. B) identify possible marketing actions. C) determine how to collect data. D) evaluate previous research results. E) identify desired solutions.
40)
Research objectives are A) conjectures regarding marketing outcomes. B) general research guidelines. C) solutions to be evaluated. D) specific and measurable. E) research dashboards.
41) Set during the marketing research process,________Blank are specific, measurable goals the decision maker seeks to achieve in conducting the marketing research. A) measures of success B) research constraints C) marketing research plans D) hypothetical scenarios E) research objectives
42) In setting research objectives, marketers have to be clear on the purpose of research they are about to do that leads to marketing actions. The three main types of marketing research include descriptive research, causal research, and________Blank research.
Version 1
15
A) virtual B) exploratory C) financial D) interdisciplinary E) interactive
43)
Research that provides ideas about a vague problem or question is referred to as A) virtual research. B) interactive research. C) causal research. D) descriptive research. E) exploratory research.
44) Research that involves trying to find the frequency with which something occurs or the extent of a relationship between two factors is referred to as A) virtual research. B) interactive research. C) causal research. D) descriptive research. E) exploratory research.
45) A firm trying to obtain data on the number of households that buy a particular product would most likely use which type of marketing research?
Version 1
16
A) descriptive B) explanatory C) exploratory D) causal E) concrete
46) Research that involves trying to determine the extent to which the change in one factor changes another one is referred to as A) predictive research. B) interactive research. C) causal research. D) descriptive research. E) exploratory research.
47) A firm using a test market to determine which pricing strategy results in highest sales for a new line of watches is an example of which type of marketing research? A) descriptive B) explanatory C) exploratory D) causal E) concrete
48)
Measures of success are
Version 1
17
A) the goals the decision maker seeks to achieve in solving a problem. B) criteria or standards used in evaluating proposed solutions to a problem. C) identification of acceptable alternatives for collecting data to solve a problem. D) objective data used to identify the most profitable solution to a marketing problem. E) subjective data used to identify the most profitable solution to a marketing problem.
49) Effective decision makers rely on criteria or standards known as________Blank that are used in evaluating proposed solutions to a problem. A) marketing dashboards B) descriptive research C) constraints D) problem definitions E) measures of success
50)
One test of whether marketing research should be done is if A) different outcomes will lead to different marketing actions. B) multiple changes can be implemented simultaneously. C) interpreting the data can be done using a jury of executive opinions. D) the decision to undertake it is unanimous. E) there is a budget for the research.
51) LEGO Group designers created MINDSTORMS® kits to appeal to middle school kids, among others. When attempting to choose between potential designs, what was the measure of success for use by LEGO Group in this instance?
Version 1
18
A) age B) gender C) assembly time D) cost E) advertising
52) The marketing research measure of success for the LEGO Group MINDSTORMS® product is assembly time for a particular design meant for middle school children. Which would be the best possible marketing action if the results of a marketing research study concluded, "All 10 teams could assemble Design B in 20 minutes but only three teams completed Design A"? A) Redesign the kits so that assembly time is more uniform. B) Introduce Design B. C) Introduce Design A, but add more new features to charge a higher price. D) Mine the data further for student reactions. E) Consult the marketing dashboards to analyze LEGO Group sales in the United States.
53) Which statement represents a possible measure of success in the first step of the five-step marketing research approach, defining the problem? A) If 3-year-olds like this product, then it stands to reason that 4-year-olds will like it even more. B) If 3-year-olds like this product, then it stands to reason that 4-year-olds will like it even more. C) Use email questionnaires, not focus groups. D) Let's identify the most cost-effective method of advertising. E) If the test subject eats most or all of the sample during the taste test, it will be assumed that he or she likes it.
Version 1
19
54) When Home Depot entered the Quebec market in Canada, two percent of people were aware of the retail chain. To determine advertising effectiveness during the first 18 months in Quebec, awareness research was done a second time. For this research, it was decided that if at least 50 percent of a 600-person sample of the population were aware of the Home Depot brand, it would continue its present advertising program. Here, level of awareness is an example of A) secondary data. B) a constraint. C) an assumption. D) a measure of success. E) a barrier to entry.
55) Once the problem has been defined, the market researcher proceeds to__________Blank, the second step of the five-step marketing research approach. A) develop the research plan B) evaluate the results C) examine the alternatives D) list the variables E) conduct the experiment
56)
There are three key elements when developing the research plan. One of these is A) specify measures of success. B) set the research objectives. C) determine how to report the findings. D) evaluate previous research results. E) specify the constraints.
Version 1
20
57) Specifying constraints, identifying data needed for marketing actions, and determining how to collect data would all take place during which step of the five-step marketing research approach? A) Define the problem. B) Develop the research plan. C) Collect relevant information. D) Develop findings. E) Take marketing actions.
58) The retail mall owner told a marketing researcher, "We have the option of staying open late twice a week or opening up an hour early every day. We need to know which will be most profitable since we cannot do both. The decision must be made in 11 weeks and we only have $10,000 budgeted for this research project." In which step of the marketing research process would the owner determine this budget and time frame? A) Define the problem. B) Develop the research plan. C) Collect relevant information. D) Develop findings and recommendations. E) Take marketing actions.
59)
In a decision, the restrictions placed on potential solutions to a problem are referred to as A) objectives. B) inhibitors. C) dependent variables. D) obstructions. E) constraints.
60)
In a marketing decision, constraints are the
Version 1
21
A) external factors affecting the number of people who can work on a solution to a problem. B) number of possible alternatives in a company's solution set. C) restrictions placed on potential solutions to a problem. D) internal factors affecting whether to select one alternative over another. E) internal factors that determine who in the organization selects the best problem to fit the hypothetical solution.
61)
What are two common constraints in marketing problem solving? A) limitations of personnel and office space B) limitations of the strategic thinking and creativity of the firm's advertising agency C) limitations on the time and money available D) government regulations and right to privacy E) limitations on access to primary and secondary research
62) DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal with claims. Prior to introducing its product into new markets, it wants to predict how successful its sales efforts will be. The marketing research firm hired to conduct the research study has six months to gather, analyze, and present its data to DirectProtect. The required time frame is an example of a(n) A) dependent variable. B) obstruction. C) objective. D) constraint. E) independent variable.
Version 1
22
63) Penningtons Superstore specializes in plus-size fashions for women. It was considering adding a line of teen plus sizes to its stores, so it contracted with a marketing research firm to make sure that the teen plus-size market was a viable one. Decision makers needed the results of its study by September 15 so Penningtons could potentially introduce the line the following March. The major constraint for research here is A) collecting secondary data. B) finding primary research candidates to interview. C) meeting the deadline. D) establishing measures of success. E) locating age-appropriate styles in plus sizes.
64)
Two key elements in deciding how to collect marketing data are A) concepts and values. B) concepts and methods. C) constraints and hypotheses. D) terms and constraints. E) terms and hypotheses.
65)
In marketing,________Blank are ideas about products or services. A) theories B) designs C) models D) impressions E) concepts
66) A picture or verbal description of a product or service a firm might offer for sale is referred to as
Version 1
23
A) a constraint. B) an exemplar. C) a new-product concept. D) a test offering. E) a protocol.
67) When Fisher-Price managers attempted to redesign its classic toy, the Chatter Telephone, they considered adding a noisemaker, wheels, and eyes to a basic plastic telephone, and thus they developed several A) virtual prototypes. B) product substitutes. C) product hypotheses. D) new-product concepts. E) new-feature matrices.
68) The approaches that can be used to collect data to solve all or part of a marketing research problem are referred to as A) methods. B) proposals. C) strategies. D) tactics. E) analyses.
69) Before its production, LEGO Group marketing managers might develop a________Blank for an innovative MINDSTORMS® EV3 robot that uses a color sensor, responds to voice commands, or uses GPS navigation software.
Version 1
24
A) virtual concept B) product substitute C) product hypothesis D) new-feature matrices E) new-product concept
70)
TheJournal of Marketing Research and theJournal of Marketing provide
A) up-to-date tables for the latest data on consumer sales, listed by industry. B) summaries of research methods and techniques valuable in addressing marketing problems. C) the latest data on marketing expenditures based on consumer geodemographics. D) postings of professional marketing opportunities at universities and colleges. E) an in-depth list of marketing positions and opportunities at major corporations.
71) Sampling and statistical inference are special________Blank, which are vital in marketing research to solve all or part of a problem. A) systems B) styles C) methods D) constraints E) modes
72)
In marketing research, sampling refers to
Version 1
25
A) testing the effectiveness of a marketing alternative in a supervised setting. B) collecting various secondary data through electronic or mechanical means. C) allowing a subject to experience firsthand a new or updated product or service. D) selecting representative elements from a population and treating their answers as typical of all those in whom they are interested. E) testing members from all ages, both genders, and different levels of income and education to guarantee reliable information.
73) The process of selecting elements from a population, collecting data from them, and using it as representative of all those a researcher is interested in is referred to as A) hypothesis generation. B) sampling. C) information gathering. D) statistical inference. E) probability extrapolation.
74) In marketing research,________Blank involves generalizing the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions. A) nonprobability sampling B) probability sampling C) extrapolation D) statistical inference E) criteria sampling
75) Drawing conclusions about every woman who leases a car in a particular zip code from a representative sample of 250 women in that zip code who lease a car is called
Version 1
26
A) probability sampling. B) nonprobability sampling. C) random sampling. D) statistical inference. E) interpolation.
76) The National Health Interview Survey is conducted annually by the Centers for Disease Control and Prevention. By examining information gathered from a national sample of 600 respondents throughout the United States, it was able to announce that 11.3 percent of all Americans adults under age 65 lacked health insurance. To make this statement, the Centers for Disease Control and Prevention used A) focus groups. B) causal research. C) internal secondary data. D) statistical inference. E) interpolation.
77) After defining the problem and developing the research plan, the next step in the five-step marketing research approach is to A) collect relevant information. B) develop findings and recommendations. C) take marketing actions. D) plan the research budget. E) identify the constraints on the process.
Version 1
27
78) GI Design is a small studio that designs and builds items such as fountains and tabletops made from copper. To increase sales, Greg, the owner, developed a research plan to determine what landscape architects and interior designers wanted in copper furnishings and appropriate pricing. He had begun to interview representative designers. Greg was engaged in________Blank, the third step of the five-step marketing research approach. A) developing the research plan B) solving the problem C) developing findings and recommendations D) collecting relevant information E) taking marketing actions
79) Penningtons Superstore, which specializes in plus-size fashions for women, wanted to determine if it should add a line of plus-size junior wear. To compare the effectiveness of offering products for the teenage market in current stores versus opening separate teen-only stores, researchers plan to distribute questionnaires to current shoppers to solicit their opinions, set up focus groups with plus-size teens, and locate helpful secondary research. This is which step of the marketing research approach? A) Define the problem. B) Develop the research plan. C) Collect relevant information. D) Develop findings and recommendations. E) Take marketing actions.
80)
The facts and figures related to a research problem are referred to as A) data. B) statistics. C) variables. D) concepts. E) constraints.
Version 1
28
81)
Data are the
A) subjective psychographic feelings collected by an organization upon which it bases subsequent marketing actions. B) objective demographic characteristics collected by an organization upon which it bases subsequent marketing actions. C) facts and figures related to the problem that are divided into two main parts: secondary data and primary data. D) information collected by a source other than the company itself used to determine the best possible solution to a marketing problem. E) facts and figures related to the problem that are only available for purchase from the federal government.
82)
The two main types of data are A) independent and dependent. B) primary and secondary. C) comprehension and case specific. D) descriptive and experimental. E) measurable and non-measurable.
83) Considering the two main types of data, if facts and figures are newly collected for a project, which type of data is being collected? A) immediate data B) internal data C) external data D) primary data E) secondary data
Version 1
29
84) Figure 8-2 shows that secondary data may be divided into two related parts. If Box A represents marketing input and outcome data (budgets, call reports, customer communications, etc.), which type of data is A?
A) questionnaire data B) mined data C) internal secondary data D) external secondary data E) observational data
Version 1
30
85) Figure 8-2 shows that secondary data may be divided into two related parts. If B represents data collected from the U.S. Census Bureau, trade association studies, business periodicals, etc., which type of data is B?
A) compiled data B) mined data C) internal secondary data D) external secondary data E) observational data
Version 1
31
86) Figure 8-2 shows that primary data may be divided into three related parts. If C represents data obtained by watching how people actually behave using mechanical, personal, or neuromarketing methods, which type of data is C?
A) questionnaire data B) mined data C) internal secondary data D) external secondary data E) observational data
Version 1
32
87) Figure 8-2 shows that primary data may be divided into three related parts. If D represents data obtained by asking people about their attitudes, awareness, intentions, and behaviors using individual interviews, focus groups, or online surveys, which type of data is D?
A) questionnaire data B) mined data C) internal secondary data D) external secondary data E) observational data
88)
All of these are sources of primary dataexcept which?
Version 1
33
A) government publications B) observational data C) experiments D) social media E) panels
89)
Secondary data are the
A) facts and figures that have already been recorded before the project at hand. B) facts and figures that are newly collected for the project at hand. C) facts and figures obtained by watching people mechanically rather than in person. D) facts and figures obtained by asking people questions through the use of information technology. E) conclusions developed from information obtained from a representative sample of a population.
90) to as
Facts and figures that have already been recorded before the project at hand are referred
A) primary data. B) empirical data. C) secondary data. D) demographic data. E) observational data.
91)
Secondary data can be divided into two parts:
Version 1
34
A) primary data and empirical data. B) empirical data and observational data. C) psychographic data and demographic data. D) demographic data and observational data. E) internal secondary data and external secondary data.
92) Children's accessory and toy store Red Carpet Baby! uses U.S. Census Bureau information to determine the number of families with children under age 5 for each state in its market area. Data obtained from this source are called A) proprietary data. B) primary data. C) secondary data. D) observational data E) experimental data.
93) If a researcher is using data that are low in cost and save time, which type of data is this likely to be? A) questionnaire data B) mined data C) secondary data D) patented data E) observational data
94) If a researcher is concerned that data may be out of date or the parameters may not entirely suit the project, which type of data is this likely to be?
Version 1
35
A) questionnaire data B) mined data C) secondary data D) patented data E) observational data
95)
Facts and figures that are newly collected for a project at hand are referred to as A) statistical data. B) empirical data. C) secondary data. D) primary data. E) inferential data.
96)
Primary data are
A) facts and figures that are newly collected for a project at hand. B) facts and figures that have already been recorded before the project at hand. C) facts and figures obtained by watching people mechanically rather than in person. D) facts and figures obtained by asking people questions through the use of information technology. E) conclusions developed from information obtained from a representative sample of a population.
97)
Observing people and asking them questions are the two principal ways to obtain
Version 1
36
A) external secondary data. B) internal secondary data. C) primary data. D) experimental independent variables. E) nonprobability data.
98) When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments' archives within her firm to make marketing decisions today, she is using A) internal secondary data. B) primary data. C) external secondary data. D) sensitivity analysis. E) probability data.
99)
All of these are examples of marketing input dataexcept which? A) advertising budgets B) call reports C) shipment records D) sales budgets E) advertising expenses
100)
All of these are examples of marketing outcome dataexcept which?
Version 1
37
A) customer phone calls B) repeat sales reports C) accounting records D) advertising budgets E) customer social media posts
101)
Published data from outside the organization are referred to as________Blank data. A) proprietary B) external primary C) internal secondary D) internal primary E) external secondary
102) The U.S. Census Bureau publishes the Economic Census, which is conducted every five years and contains detailed information on the number and sales of U.S. establishments that produce goods or services. When businesses use information from this publication, it is considered________Blank data. A) proprietary B) external primary C) internal secondary D) internal primary E) external secondary
103) The U.S. Census Bureau publishes the________Blank, which is conducted every five years and contains detailed information on the number and sales of U.S. establishments that produce goods or services.
Version 1
38
A) Annual Retail Trade Survey B) Annual Survey of Manufacturers C) Economic Census D) Annual Wholesale Trade Survey E) North American Industry Classification Survey
104) When customers have their groceries scanned at the supermarket checkout counter, data regarding product sales and coupon redemptions are collected and processed by tracking services such as IRI's InfoScan. Consumer product firms such as Procter & Gamble use data collected by IRI to allocate scarce marketing resources. For P&G, such data should be considered A) internal secondary data. B) primary data. C) external secondary data. D) sensitivity analysis. E) probability data.
105) When Karsh and Hagan, an advertising agency, uses information found in the Nielsen Television Index Ranking Report published by Nielsen to plan television advertising schedules for its clients, it is relying on________Blank data. A) neuromarketing B) primary C) internal secondary D) observational E) external secondary
Version 1
39
106) According to research conducted by Canadian cultural anthropologists, Canadians place a high importance on personal relationships. This leads them to be extremely reluctant to buy through an impersonal medium like a telephone. For an insurance company that was hoping to sell insurance through telemarketers, this research would be an example of A) internal secondary data. B) a constraint. C) an assumption. D) a dependent variable. E) external secondary data.
107) A survey by the Economic Research Service of the U.S. Department of Agriculture, government statistics from the Department of Commerce, and stock market information fromThe Wall Street Journal would all be examples of A) internal primary data. B) nonprobability sampling methods. C) internal secondary data. D) external secondary data. E) external primary data.
108) The Economic Research Service of the U.S. Department of Agriculture provides information on topics from revenue sources for beekeepers to estimated effects of tax cuts on farms and farm households. This service provides A) internal primary data. B) nonprobability sampling tools. C) internal secondary data. D) external secondary data. E) external primary data.
Version 1
40
109) J.D. Power and Associates and other market research firms recruit groups of consumers for________Blank, each of whom are paid to record all of their purchases on a regular basis. Businesses pay firms such as J.D. Power for their reports that answer the question, "How many times did our customers buy our products this year compared to last year?" A) focus groups B) experiments C) syndicated panels D) curated data mining E) mall intercept interviews
110) Several market research companies pay households and businesses to record all their purchases using a paper or electronic diary, which allows for an economical way to collect consistent data over time. These data are referred to as A) sponsored data. B) data reciprocity. C) method sampling. D) syndicated panel data. E) data journaling.
111) Several marketing data services provide information on household demographics and lifestyle, purchases, TV viewing behavior, responses to promotions, and social media use. The principal advantage of these services is that
Version 1
41
A) one service can collect, analyze, interrelate, and present this disparate information. B) all data collection and analysis are computerized, so the results obtained are almost instantaneous. C) members of the firm can be included in the analysis of data, making the results more reliable. D) the service gets paid on a percentage basis; the better the information, the higher the fee. E) firms using these services get discounts if they share their customer data with competitors.
112) A general rule of thumb among marketing researchers is to use________Blank first and then collect________Blank. A) external secondary data; internal primary data B) internal primary data; external primary data C) primary data; secondary data D) secondary data; primary data E) questionnaire data; observational data
113)
Two important advantages of secondary data are that they are A) inexpensive and up-to-date. B) up-to-date and supply all relevant categories of information. C) inexpensive or free and save time. D) tailor-made to specifications and relatively inexpensive. E) highly credible and up-to-date.
114)
Two important disadvantages of secondary data are that they may be
Version 1
42
A) difficult to acquire and not up to date. B) out of date and not specific enough for the project. C) unavailable in time and biased toward large corporations. D) biased toward government objectives and out of date. E) costly and time-consuming.
115)
The Internet sites forThe Wall Street Journal,CNBC, andBloomberg
A) sell information on trade activity collected by the U.S. government. B) are portals to all government websites that can be found by topic or keyword. C) provide information in online databases and an index of blogs by primary topic. D) are the most popular online portals in which to enter keywords or topics for specific searches. E) provide up-to-the-minute business news and video clips about companies, industries, and trends.
116)
The U.S. Census Bureau website
A) is a repository of information on U.S. business, economic, and trade activity collected by the federal government. B) is a portal to all government websites that can be found by topic or keyword. C) provides up-to-the-minute business news and security prices plus research reports of companies, industries, and countries. D) is the most popular Internet portal to enter keywords or topics for specific searches. E) accesses information in online databases and blogs by primary topic.
117)
The Internet website USA.gov
Version 1
43
A) is a repository of information on U.S. business, economic, and trade activity collected by the federal government. B) is a portal to all government websites that can be found by topic or keyword. C) provides up-to-the-minute business news and security prices plus research reports of companies, industries, and countries. D) is the most popular Internet portal to enter keywords or topics for specific searches. E) accesses information in online databases and an index of blogs by primary topic.
118)
A) is a repository of information on U.S. business, economic, and trade activity collected by the federal government. B) is to the most direct way to access all government websites. C) provides up-to-the-minute business news and security prices plus research reports of companies, industries, and countries. D) is the most popular Internet portal where users can enter keywords for specific searches. E) accesses information in online databases and an index of blogs by primary topic.
119) Facts and figures obtained by watching, either mechanically or in person, how people actually behave are referred to as________Blank data. A) inspection B) hypothetical C) primary source D) observational E) eyewitness
120)
Observational data are
Version 1
44
A) facts and figures newly collected for the project at hand. B) facts and figures obtained by asking people questions either through personal interviews, panel discussions, or questionnaires. C) facts and figures obtained by watching, either mechanically or in person, how people actually behave. D) facts and figures that have already been recorded from multiple sources before the project. E) conclusions developed from information obtained from a representative sample of a population.
121) Mechanical, personal, or neuromarketing methods are ways that________Blank data can be collected. A) virtual B) primary source C) hypothetical D) observational E) statistical
122) Fisher-Price watches young children play with its toys to determine if and how various products should be changed or improved. Fisher Price is collecting________Blank data. A) observational B) questionnaire C) interview D) on-site E) focus group
Version 1
45
123) Nielsen collects national TV ratings by using a "people meter." This is a box that is attached to televisions, DVRs, cable boxes, and satellite dishes in about 30,000 households across the country; has a remote control that is used to indicate when a viewer begins and finishes watching a TV program; and stores and then transmits the viewing information to Nielsen each night. The information Nielsen is collecting is referred to as A) internal secondary data. B) interactive industry data. C) sensitivity data. D) external secondary data. E) observational data.
124)
The purpose of Nielsen's Total Content Rating system is to
A) expand its scope to include the effectiveness of online college courses. B) expand its scope to include satellite radio programming. C) combine its new online ratings with its existing TV ratings. D) expand its ratings to combine various global markets. E) gain access to every American home that owns a television, mobile phone, or computer.
125) The data that are collected with a "people meter" and later published by Nielsen as national TV ratings are an example of________Blank data when gathered. A) internal secondary data B) interactive industry data C) curated promotional data D) mechanical observational data E) sensitivity data
Version 1
46
126) What marketing metric determines whether a TV program such as NCIS remains on the CBS broadcast TV network? A) appeal B) cost per ad C) rating D) poll E) frequency
127) The Nielsen Television Index Ranking reports the rating of each TV program. With about 120 million TV households in the United States, a single rating point A) is not a good measurement of television viewership. B) equals one point on a 10-point scale. C) has limited impact on advertising rates for marketers. D) equals 1 percent, or 1,200,000 TV households. E) suggests that a show has very few viewers.
128) By________Blank, IKEA noticed that customers often stopped shopping when their baskets or carts were full, so additional shopping bags are now placed throughout IKEA stores. A) using survey data B) employing mystery shoppers C) using neuromarketing D) interviewing employees E) watching consumers in person
129) People posing as customers who are paid to check on the quality of a company's products and services and write a detailed report on the experience are
Version 1
47
A) mystery shoppers. B) customer ombudsmen. C) secret customers. D) social media influencers. E) repeat customers.
130)
Mystery shoppers are people
A) hired by a firm to get legal, though not necessarily ethical, information about competitive firms. B) hired by a firm's employees to prove to the courts that competitors are using unfair pricing practices. C) hired by a customer to report on illegal or unethical practices that are regularly taking place at a particular establishment. D) who pose as customers to check on availability and pricing of a firm's products or services and on the quality of the customer service. E) hired by law firms to check on the safety of their clients' products and the credibility of their advertising.
131) Melanie manages a local store for a national drugstore chain and had received complaints from several customers about rude employees. To check on her customer service, Melanie hired a team of researchers, who posed as customers shopping in the store. Occasionally, they bought something, but their primary purpose was to take notes and record the actions of the service staff. The research information Melanie received was a form of________Blank data. A) secondary B) developmental C) observational D) national E) questionnaire
Version 1
48
132) A specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products in their "natural use environment" is referred to as________Blank research. A) ethnographic B) cultural C) genealogical D) sociological E) physiological
133)
Ethnographic research
A) was specifically designed to use in global markets to help marketers understand cultural diversity and ethnocentrism. B) uses genealogical data to track purchase behaviors through family lines. C) relies on physiological responses such as heart rate, breathing rate, and stress levels to obtain objective data. D) uses trained researchers to discover subtle behavioral and emotional reactions as consumers encounter products in their "natural use environment." E) uses videotapes to eliminate miscues of subtle emotional reactions that can skew market research results.
134) Best Western International, Inc., a national hotel chain, paid couples to film themselves as they spent three to seven days on a cross-country trip. Best Western found that women usually decide when to pull off the road, where to stay overnight, and what amenities the lodging should have to make their stay more enjoyable. These couples made choices in an authentic environment, providing________Blank research to Best Western.
Version 1
49
A) secondary B) developmental C) alternative D) ethnographic E) focus group
135)
Personal observation is
A) more accurate than forms of research because the observer/analyst is able to pick up on motivations for behavior often missed by other data collection methods. B) especially suited for small businesses that need the research data but cannot afford more expensive data collection methods. C) very effective since it can reveal not only what people do, but also effectively determine why they do it. D) both useful and flexible, but has reliability issues if different observers watching the same event report different results. E) highly objective; different observers nearly always report the same conclusions when watching the same event, such as people brushing their teeth.
136) The field of marketing that studies the brain and its response to marketing stimuli is referred to as A) psychological extrapolation. B) strategic hypothesizing. C) neuromarketing. D) consumer deduction. E) mental conjecture.
137) What type of marketing uses brain scanning to analyze the buying processes of research participants?
Version 1
50
A) subliminal marketing B) permission marketing C) psychographic marketing D) optimization marketing E) neuromarketing
138) Martin Lindstrom used________Blank to analyze buying processes and presented the findings of his research in his bookBuyology. A) genealogy B) brain scanning C) segmentation D) biochemistry E) numerology
139) Based on________Blank, the Campbell Soup Company changed the labels of most of its soup cans to add steam rising from the product and remove the “unemotional spoons.” A) external secondary data, an article in the Journal of Consumer Behavior on ethnographic research B) social media Facebook comments and Twitter tweets analysis C) internal secondary data, sales reports on soup sales by flavor and package type (can or microwave bowl) D) neuromarketing studies E) online/email questionnaires
Version 1
51
140) Researchers for Frito-Lay discovered that matte beige bags of potato chips picturing potatoes and other healthy ingredients in the snack do not trigger activity in the anterior cingulate cortex, an area of the brain associated with feelings of guilt, as much as shiny bags with pictures of chips. Frito-Lay then switched out of shiny packaging in the United States shortly thereafter. This is an example of using A) subliminal marketing. B) permission marketing. C) optimization marketing. D) neuromarketing. E) surge marketing.
141) The facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors are A) primary data. B) secondary data. C) statistical inference. D) observational data. E) questionnaire data.
142)
Questionnaire data are
Version 1
52
A) the facts and figures obtained by observing people’s attitudes, awareness, intentions, and behaviors. B) the facts and figures obtained by analyzing people’s brain waves as consumers complete surveys about their geodemographics, ethnographics, and behaviors. C) psychographic data obtained by asking people unbiased questions about their age, occupation, and income. D) the facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors. E) any type of information about a consumer obtained through nontechnological methods.
143) Research and media firm Youth Culture publishes Watch magazine, a teen publication distributed free to high school students, and wanted to gauge whether it was meeting the needs of its audience. Youth Culture handed out surveys to learn how students felt about the publication. Feedback indicated teen boys and girls were demanding very different things from the magazine. This feedback was gleaned from________Blank data. A) questionnaire B) internal secondary C) external secondary D) observational E) promotional sales
144) When First Western Bank sent surveys via mail to its savings accounts-only customers to ask why they did not also have checking accounts and credit cards with First Western, they were gathering________Blank data. A) intercept B) secondary C) questionnaire D) observational E) nonprobability
Version 1
53
145) DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell insurance and deal with claims. It wants to pursue new markets, but with some idea of how successful its sales efforts will be. Researchers invited a group of eight insured people to its headquarters to discuss their attitudes about home and auto insurance and awareness of DirectProtect. Responses were gathered on paper as________Blank data. A) hypothetical B) generative C) evaluative D) questionnaire E) experiential
146) Each survey method, from focus groups to personal interviews, results in valuable________Blank, which are facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors. A) hypothetical data B) generative data C) evaluative data D) questionnaire data E) experiential data
147)
All of these are idea generation methods for collecting questionnaire dataexcept which? A) a mail survey B) trend hunting C) a focus group D) a depth interview E) an individual interview
Version 1
54
148)
Individual interviews involve
A) several people asking the same person the same questions over a period of time to check for answer reliability. B) asking respondents in a shopping mall to fill out a brief survey. C) a single researcher asking questions of one respondent. D) having the interviewee talk about specific aspects of a product or service using a video camera in his/her natural use environment. E) a panel of respondents participating in a guided discussion led by an experienced moderator.
149) A common method of collecting questionnaire data to generate ideas that involves a single researcher asking questions of one respondent is A) a panel. B) a focus consultation. C) an individual interview. D) a face-to-face exchange. E) an interactional interview.
150) When it is desirable for the interviewer to be flexible in asking probing follow-up questions for marketing research, data would be best collected using A) mail surveys. B) mechanical observations. C) paper diaries. D) individual interviews. E) online surveys.
Version 1
55
151) Marine Midland Bank sent market researchers door-to-door in the neighborhoods surrounding its branch banks. Each researcher planned to spend up to 15 minutes talking with a head of the household about his or her savings accounts to discuss why he or she did not also have checking accounts and credit cards with the bank. Marine Midland researchers were using________Blank to collect these data. A) secondary interviews B) individual interviews C) intercept interviews D) observational data collection E) ethnographic research
152) A special kind of individual interview in which researchers ask lengthy, free-flowing kinds of questions to probe for underlying ideas and feelings is a A) focus group. B) discovery interview. C) probing interview. D) guided interview. E) depth interview.
153) A marketing research approach that uses a discussion leader to interview 6 to 10 past, present, or prospective customers simultaneously is A) a depth interview. B) data mining. C) a research team. D) a focused interview. E) a focus group.
Version 1
56
154) ________Blank is often conducted with observers behind a one-way mirror watching a discussion among people about topics of interest to marketers. A) An individual interview B) Questionnaire data collection C) Social networking D) An information panel E) A focus group
155) The Minnesota Twins, a professional baseball team, wanted to develop creative ways to boost sagging attendance at ball games. The Twins hired a moderator who, after every home game during the month of July, led informal discussions with groups of 8 to 10 fans to find out what they did and did not like about the baseball team and their experience at the stadium. Discussions were videotaped for later review. These research sessions are called A) experiments. B) secondary data. C) focus groups. D) panels. E) depth interviews.
156) DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and deal with claims. Prior to introducing its product into new markets, it needs a prediction of how successful its sales efforts will be. Researchers invited four groups of eight insured people to talk about home and auto insurance. Their conversations were recorded and analyzed to determine if there were any differences between customers from different markets. These sessions are
Version 1
57
A) experiments. B) focus groups. C) panels. D) evaluative interviews. E) depth interviews.
157) A publishing company sponsors a discussion session with seven college instructors who use a specific management textbook. The instructors meet with a moderator who asks their opinions about the textbook, its instructor’s manual, and its video and written cases. This is a(n) A) jury of executive thought. B) consumer panel. C) information forum. D) focus group. E) depth interview.
158) The practice of identifying “emerging shifts in social behavior,” which are driven by changes in pop culture that can lead to new products, is called________Blank hunting. A) trend B) fad C) fashion D) cult E) affinity
159) In________Blank, the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions.
Version 1
58
A) idea generation B) new-product concept testing C) data mining D) data analysis E) idea evaluation
160)
All of these are idea evaluation methodsexcept which? A) a mail survey B) an online survey C) a focus group D) a telephone survey E) an email survey
161) ________Blank surveys are the best choice if a marketing researcher wants flexibility in asking probing questions or getting reactions to visual materials. A) Personal interview B) Mail C) Telephone D) Fax E) Online
162) Biased results are a problem with________Blank surveys because respondents are likely to have had especially positive or negative experiences with the product or brand.
Version 1
59
A) personal interview B) online C) telephone D) fax E) mail
163) that
Marketers are increasingly using online surveys to collect primary data. One advantage is
A) response rates are higher because consumers are anonymous. B) the quality of responses is better with online surveys than they are with personal interview surveys. C) turnaround time from data collection to report is much quicker than with other methods. D) consumers value email surveys and feel highly regarded when receiving them. E) consumers want to be helpful so they complete the survey multiple times.
164) The________Blank method has two advantages over other traditional methods of questionnaire data collection. The cost is relatively minimal and the turnaround time for data collection to report presentation is much quicker. A) personal interview B) telephone interview C) mail survey D) online survey E) fax survey
165)
All of these are disadvantages of online surveysexcept which?
Version 1
60
A) Email surveys may be viewed as junk. B) The cost to set up and administer them is high. C) Some potential respondents have a pop-up blocker that prohibits a browser from opening a separate window that contains the survey. D) Without the necessary technology, respondents can complete the survey multiple times, creating a significant bias in the results. E) Some potential respondents may employ spam blockers.
166) A(n)________Blank question allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher. A) dichotomous B) open-ended C) closed-end D) fixed-alternative E) semantic differential
167) “Why do you smoke cigarettes?” followed by a blank line for a response is an example of which type of marketing research question? A) Likert scale B) fixed-alternative C) dichotomous D) open-ended E) semantic differential
168) “Why do you smoke cigarettes?” followed by a blank line for a response is an example of which type of question?
Version 1
61
A) Likert scale B) fixed-alternative C) dichotomous D) open-ended E) semantic differential
169) Before opening six Torrid plus-size-only retail stores that cater to women age 15 to 30, a great deal of information was gathered from a sample of women to determine what types of items should be carried, the image of the store, its advertising, etc. Which of these is an openended question that might have been asked in the survey? A) “Do you wear a dress larger than size 12?” B) “How old are you?” C) “Would you shop at a store that only sold plus-size clothing?” D) “What is missing from your fashion options today?” E) “Do you think the stores should use bright- or subtle-colored fixtures?”
170) A(n)________Blank question requires respondents to select one or more response options from a set of predetermined choices. A) depth interview B) open-ended C) fixed-alternative D) attitudinal E) semantic differential
171) A fixed-alternative question requires respondents to select one or more response options from the set of predetermined choices. Another name for this kind of question is a(n)
Version 1
62
A) dichotomous question. B) open-ended question. C) attitudinal question. D) closed-end question. E) semantic differential question.
172) The type of question you are answering right now is an example of a(n)________Blank question. A) Likert scale B) dichotomous C) open-ended D) fixed-alternative E) semantic differential
173) Before opening six Torrid plus-size-only retail stores that cater to women age 15 to 30, a great deal of information was gathered from a sample of women to determine what types of items should be carried, the image of the store, its advertising, etc. Which of these is a closedend question that might have been asked? A) Why would you want to shop at a store that carries plus-size clothing? B) In what ways might you be uncomfortable shopping at a plus-size-only retailer? C) Would you be interested in buying the Torrid merchandise on the Internet?___Blank Yes___Blank No D) What type of person would shop at Torrid? E) What is your age? Please write the number in the space:________Blank
174) A(n)________Blank question is the simplest form of a fixed-alternative question that allows only a “yes” or “no” response.
Version 1
63
A) dichotomous B) open-ended C) closed-end D) attitudinal E) semantic differential
175) “Have you been to a dentist within the past twelve months?___Blank Yes___Blank No” is an example of which type of question? A) Likert scale B) semantic differential C) dichotomous D) open-ended E) evaluative
176) A survey asked consumers of dental products this question: “Have you used toothpaste in the past week?___Blank Yes___Blank No.” The results of this question showed that 92.6 percent of the people in New York City had used toothpaste in the past week and 97.2 percent of people in Los Angeles had used toothpaste during the same period. This information was gathered by using which type of question? A) open-ended B) dichotomous C) holistic D) evaluative E) Likert scale
177) Likert and semantic differential are two forms of fixed-alternative questions that have three or more choices and use a(n)
Version 1
64
A) frequency distribution. B) scale. C) measure of success. D) open-ended format. E) constraint.
178) A(n)________Blank scale is a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings. A) dichotomous B) open-ended C) Likert D) attitudinal E) semantic differential
179) What kind of question is this? “Place an ‘X’ in the space that describes your view of this test.” Easy__Blank__Blank__Blank__Blank__Blank Difficult A) Likert scale B) semantic differential scale C) dichotomous question D) open-ended question E) sensitivity analysis question
180) A(n)________Blank scale is one in which the respondent indicates the extent to which he or she agrees or disagrees with a statement.
Version 1
65
A) Likert B) attitudinal C) dichotomous D) open-ended E) semantic differential
181) What type of scale is this? Indicate your degree of agreement with this statement: “Marketing is an interesting subject” by checking one of the responses. () Strongly Agree () Agree () Disagree () Strongly Disagree A) semantic differential scale B) dichotomous question C) open-ended question D) Likert scale E) attitudinal question
182) “Do you eat at fast-food restaurants regularly? Yes or No” is worded poorly because the word “regularly” makes it________Blank question. A) a judgmental B) an ambiguous C) two questions in one D) a leading E) a nonmutually exclusive
183)
Mall intercept interviews are
Version 1
66
A) impersonal data collection methods in strip shopping malls. B) telephone interviews with consumers about their shopping center habits. C) scientifically selected individuals from the local community who agree to participate in a research study and are directed to meet at a specific shopping center for the interviews. D) focus groups located in major shopping centers. E) personal interviews of consumers visiting shopping centers.
184)
A disadvantage of the mall intercept interview method is the
A) difficulty in finding qualified interviewers to work at relatively low salaries. B) lack of reliability due to changes in customer traffic during holidays. C) ill will it creates with shoppers who are in a hurry or looking for a relaxing mall experience. D) people selected may not be representative of the target market. E) people only participate to receive something in return, so their answers are often biased.
185) Frito-Lay substituted________Blank for its usual focus groups to allow consumers to weigh in on which new flavors of Lay’s potato chips would be introduced. A) telephone interviews B) social media C) a panel D) virtual focus groups E) experiments
186) Carma Laboratories, Inc., the maker of Carmex lip balm, used________Blank to conduct marketing research to understand the nature of online conversations about lip balm.
Version 1
67
A) ethnographic research B) depth interviews C) focus groups D) social media E) telephone surveys
187) In evaluating whether its Facebook and Twitter social media programs are working well, Carmex considered using various marketing metrics. One metric it chose was________Blank, which provides the percentages of Internet Carmex mentions that are positive, neutral, or negative. A) Carmex Twitter followers B) Carmex conversation velocity C) Carmex sentiment D) Carmex Facebook likes E) Carmex share of voice
188) In evaluating whether its Facebook and Twitter social media programs are working well, Carmex considered using various marketing metrics. One metric it chose was________Blank, which quantifies the number of Carmex mentions on the Internet as a percentage of all mentions of major lip balm brands. A) Carmex sentiment B) Carmex Twitter followers C) Carmex conversation velocity D) Carmex Facebook likes E) Carmex share of voice
189) A________Blank is a sample of consumers or stores from which researchers take a series of measurements.
Version 1
68
A) representative group B) jury of executive opinion C) panel D) survey of experts E) focus group
190)
An advantage of using a panel of consumers for marketing research is
A) the discussion leader can help change negative panel responses into positive ones. B) the company can find out if consumers change their purchasing behavior over time. C) panel members often help each other by bringing up ideas for discussion that others didn’t initially think of but that were important to them. D) there will usually be one panel member who dominates the discussion and helps keep the conversation focused. E) panel members are highly defined demographically, so it is relatively simple to replace an individual member without losing continuity.
191) A disadvantage of a________Blank is that the marketing research firm needs to recruit new members continually to replace those who drop out. A) representative group B) mall intercept interviews C) focus group D) survey of experts E) panel
192) Obtaining data by manipulating factors under tightly controlled conditions to test cause and effect is
Version 1
69
A) questionnaire data. B) virtual modeling. C) an experiment. D) a panel. E) nonprobability sampling.
193) As marketing vice president of Health Care Services, Inc., you must test the hypothesis that increasing the number of salespeople assigned to a territory will increase sales of health care services in the territory. Which experiment will do this best? A) Create an incentive program for your salesforce based upon individual performance. Use increases in customer satisfaction as your dependent variable and increases in sales performance as your independent variable. B) Select three degrees of service health care (poor, good, average) as your independent variable and measure customer responses for each grade using the same number of sales representatives in each territory as your dependent variable. C) Create an incentive program for your salesforce based upon individual performance. Use increases in customer satisfaction as your independent variable and increases in sales performance as your dependent variable. D) Use a different number of salespeople in three different sales territories as your independent variable and changes in sales of health care services as the dependent variable. E) Create an incentive program for your salesforce based upon team performance. Use increases in customer satisfaction as your independent variable and increases in sales performance for the team as your dependent variable.
194) In marketing experiments, the independent variable is the________Blank and the dependent variable is the________Blank.
Version 1
70
A) element that never changes; element that always changes B) result; factor beyond the experimenter’s control C) result of an action; cause of an action D) cause of an action; result of an action E) element that always changes; element that never changes
195) GI Designs, a copper furniture manufacturer, increased the price on its copper tabletops by 20 percent for three months to see what the effect would be on its sales. The price increase is the________Blank in this three-month experiment. A) control B) dependent variable C) independent variable D) constraint E) hypothesis
196) When Procter & Gamble acquired the Old Spice brand, it decided to reposition the brand by using a different advertising message to see whether its sales would increase. The advertising message is the________Blank in this marketing experiment. A) dependent variable B) extraneous variable C) constraint D) independent variable E) error variable
197) When conducting marketing experiments, the independent variable often involves marketing mix elements such as product features or coupons, while dependent variables often include
Version 1
71
A) elements of the environmental forces that cannot be controlled. B) changes in channels of distribution or pricing. C) elements of the marketing mix that cannot be manipulated. D) the primary experimental hypothesis. E) changes in purchases such as dollar or unit sales of individuals or organizations.
198) R Taco increased the price for its tacos for three months to see what the effect would be on its sales. The change in sales is the________Blank in this experiment. A) constraint B) dependent variable C) decision task D) control E) independent variable
199) A market researcher showed a plain print ad of a new brand of designer jeans to several groups of college students and asked the students to rate the quality of the jeans. Then the researcher showed some other college students a print ad featuring movie star Scarlett Johansson wearing the new brand and again asked the students to rate the quality of the jeans. The marketer predicted that after viewing the ad featuring Johansson, the students’ ratings of the jeans would be more positive than previously. In this experiment, students’ ratings of the new blue jeans served as the A) dependent variable. B) independent variable. C) social environmental force. D) secondary data. E) constraint.
Version 1
72
200) When Procter & Gamble acquired the Old Spice brand, it decided to reposition the brand by using different television and print advertising to see whether sales would increase. The level of sales is the________Blank in this experiment. A) dependent variable B) independent variable C) hypothesis D) extraneous variable E) error variable
201) Eppie’s Used Cars wanted to test whether straight price discounting worked better than a free gift. It ran two different commercials on alternate Wednesdays. The first offered 10 percent off the Kelley Blue Book price for any four-wheel-drive vehicle on the lot while the second offered a free tent with the purchase of any four-wheel-drive vehicle at the Kelley Blue Book price. The type of offer was the________Blank variable. The number of people that responded to each type was the________Blank variable, which would suggest the best strategy for increasing traffic. A) marketing; dependent B) dependent; independent C) control; independent D) independent; dependent E) dependent; control
202) In marketing experiments, the independent variables of interest, sometimes called the marketing________Blank, are often one or more of the marketing mix elements. A) factors B) drivers C) forces D) actions E) causalities
Version 1
73
203) Experiments often use marketing drivers like product features, price, or promotion as________Blank variables. A) marketing action B) independent C) environmental force D) dependent E) causal
204) Offering a product for sale in a small geographic area to help evaluate potential market actions is a(n) A) micro market. B) test market. C) experimental market. D) simulated market. E) trial market.
205) McDonald’s tested its delivery service in three Florida cities to assess consumer interest before deciding to expand to 20,000 of its restaurants. Which type of experiment was conducted here? A) micro market B) trial market C) experimental market D) simulated market E) test market
Version 1
74
206) A potential difficulty with experiments such as test markets is that outside factors, such as the actions of competitors, can distort the results by affecting________Blank, such as sales. A) independent variables B) marketing drivers C) dependent variables D) causality variables E) probability variables
207) A test market for a new Kellogg’s cereal introduced in Safeway grocery stores in the western United States is an example of A) hypothesis generation. B) an experiment. C) secondary data. D) virtual modeling. E) probability sampling.
208) ________Blank is a vague term generally used to describe large amounts of data collected from a variety of sources and analyzed with an increasingly sophisticated set of technologies. A) Big data B) Data visualization C) Data intelligence D) Data mining E) Data tabulation
209) ________Blank includes all of the computing resources that collect, store, and analyze data collected from a variety of sources.
Version 1
75
A) Data mining B) Environmental scanning C) Computerization D) E-marketing E) Information technology
210)
Information technology refers to
A) any information derived from a nonpersonal source. B) all of the computing resources that collect, store, and analyze data. C) any hardware used in collecting information to be used in market research such as scanners, telephones, voting machines, etc. D) any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services. E) the inventions or innovations from applied science or engineering research.
211) The challenge facing today’s marketing researchers and data scientists is not data collection or even storage but how to A) leverage external data sources. B) effectively leverage results without excessive data generation. C) avoid the use of data warehouses. D) efficiently transform the huge amount of data into useful information. E) match buying queries to relevant outputs.
212) The presentation of the results of data analysis is becoming a new field of marketing research known as
Version 1
76
A) external data sources. B) data visualization. C) data warehouse presentations. D) internal data source coding. E) data maximization.
213) Marketing researchers must use the combination of data, technology, and analytics to convert the data into useful information that will answer marketing questions and lead to effective marketing actions. An organization that accomplishes this successfully is often referred to as A) an external data source specialist. B) a results-oriented enterprise. C) an intelligent enterprise. D) an internal data source user. E) an information entrepreneur.
Version 1
77
214) Figure 8-5 shows how marketing researchers and managers use information technology to turn information into marketing actions. What does A represent?
A) external data sources B) results C) data warehouse D) internal data sources E) buying queries
Version 1
78
215) Figure 8-5 shows how marketing researchers and managers use information technology to turn information into marketing actions. What does B represent?
A) external data sources B) results C) data warehouse D) internal data sources E) buying queries
Version 1
79
216) Figure 8-5 shows how marketing researchers and managers use information technology to turn information into marketing actions. What does C represent?
A) external data sources B) results C) data warehouse D) internal data sources E) buying queries
Version 1
80
217) Figure 8-5 shows how marketing researchers and managers use information technology to turn information into marketing actions. What does D represent?
A) external data sources B) results C) data warehouse D) internal data sources E) buying queries
Version 1
81
218) Figure 8-5 shows how marketing researchers and managers use information technology to turn information into marketing actions. What does E represent?
A) external data sources B) results C) data warehouse D) internal data sources E) buying queries
219) Data from internal and external sources are stored, organized, and managed in databases. Collectively, these databases form a data A) vault. B) depot. C) warehouse. D) storehouse. E) repository.
Version 1
82
220) Databases that are subject to________Blank platforms undertake reasoning and commonsense tasks that allow computers to perform sophisticated behaviors like guiding self-driving cars and making purchase recommendations. A) artificial intelligence B) enterprise software C) data visualization D) data source driver E) smart query
221) IBM, Tesla, and Amazon are using________Blank to operate Watson, guide self-driving cars, and make purchase recommendations, respectively. A) cloud B) data visualization C) corrective D) artificial intelligence E) carousel
222) When accessing a database, marketers can use sensitivity analysis to ask________Blank questions to determine how hypothetical changes in product or brand drivers can affect sales. A) “what if” B) results-oriented C) data warehouse D) internal data E) buying behavior
Version 1
83
223) When a marketing manager is asking “what if” questions to determine how hypothetical changes in product or brand drivers can affect sales, she is performing________Blank analysis. A) a marketing B) an environmental C) a structured D) a query E) a sensitivity
224) If a marketing manager queries his marketing databases to determine the effect of three different levels of price for a new product, he is using A) action analysis. B) an environmental scan. C) a problem search. D) situational analysis. E) sensitivity analysis.
225) The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions is referred to as A) predictive analysis. B) information extraction. C) variable analysis. D) database management. E) data mining.
226)
Data mining refers to
Version 1
84
A) any form of electronically generated market research. B) the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions. C) a branch of marketing specializing in obtaining both objective and subjective data to be used by other companies or organizations. D) obtaining information about a competitor and its products for use by one’s own firm. E) the use of information derived solely from unsolicited sources such as customer complaints or complements.
227) When querying its marketing information system (MIS), one convenience store discovered that when consumers bought coffee, many also purchased lottery tickets. This information was obtained from checkout scanner data from its stores nationwide. This convenience store used__________Blank to extract this information from its MIS to find a statistical link between the two product categories. A) linear trend extrapolation B) heuristic modeling C) data mining D) descriptive research E) RFID data
228)
All of these are true about data miningexcept which?
A) Some of the information found on the Internet is factually incorrect. B) Personal, private data on most Americans are available on the Internet. C) It is easy for almost anyone to find out your personal information through both online and offline sources. D) Businesses are required to inform consumers when they obtain their personal data. E) Many firms obtain personal, private data by placing cookies on a person’s computer or use tracking apps to forward location information from a user’s mobile phone.
Version 1
85
229) Even though primary data can be especially valuable to an individual firm, secondary data are often used because A) secondary data are much more up-to-date and tailored to a specific firm or industry. B) secondary data, although far more expensive, are also much more reliable. C) primary data are usually more costly and time-consuming to collect. D) primary data can be accessed by virtually anyone so the information generated loses much of its value. E) primary data are less fact and figure based; they are more subjective and therefore more vulnerable to misinterpretation.
230) A(n)________Blank is a method of presenting and analyzing data involving two or more variables to discover relationships in the data. A) cross tabulation B) environmental scan C) absolute value D) predictive information extraction E) experiment
231)
A cross tabulation refers to
Version 1
86
A) the selection of a group of people, asking them questions, and treating their answers as typical of all those in whom they represent. B) a method of presenting and analyzing data involving two or more variables to discover relationships in the data. C) the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions. D) “what if” questions that determine how hypothetical changes in marketing mix drivers influence the buying decisions of a household. E) the operation of computer networks that can store and process data.
232) Consider Figure 8-6A. Suppose you are an owner of a local Wendy’s restaurant near a large urban college or university. You hired a marketing research firm to conduct a survey among a sample of respondents in your area to find out their patronage of fast-food restaurants. Four weeks after the firm conducted the survey, it presented these results to you. What does this figure represent?
A) a trend extrapolation B) a Likert scale report C) a perceptual map D) a cross tabulation E) a marketing input report
Version 1
87
233) Consider Figure 8-6A. Suppose you are an owner of a local Wendy’s restaurant near a large urban college or university. You hired a marketing research firm to conduct a survey among a sample of respondents in your area to find out their patronage of fast-food restaurants. Four weeks after the firm conducted the survey, it presented the following results to you. Which group of people in terms of age of household had the largest response to the survey?
A) 45 and older B) once a week or more C) 25 to 44 D) once a month or less E) under 25
234) Consider Figure 8-6A. Suppose you are an owner of a local Wendy’s restaurant near a large urban college or university. You hired a marketing research firm to conduct a survey among a sample of respondents in your area to find out their patronage of fast-food restaurants. Four weeks after the firm conducted the survey, it presented the following results to you. Which age group seems to patronize fast-food restaurants the most?
Version 1
88
A) 45 and older B) once a week or more C) 25 to 44 D) once a month or less E) under 25
235) Consider Figure 8-6B. Suppose you are an owner of a local Wendy’s restaurant near a large urban college or university. You hired a marketing research firm to conduct a survey among a sample of respondents in your area to find out their patronage of fast-food restaurants. Four weeks after the firm conducted the survey, it presented the following results to you. If you wanted to target a heavy-use market segment based on the results presented, which would you select?
A) 45 and older B) once a week or more C) 25 to 44 D) once a month or less E) under 25
Version 1
89
236) Consider Figure 8-6B. Suppose you are an owner of a local Wendy’s restaurant near a large urban college or university. You hired a marketing research firm to conduct a survey among a sample of respondents in your area to find out their patronage of fast-food restaurants. Four weeks after the firm conducted the survey, it presented the following results to you. Based on the results presented, which market segment is least attractive to pursue because they are light users?
A) 45 and older B) once a week or more C) 25 to 44 D) once a month or less E) under 25
237) All of these are advantages to using cross tabulations to organize and present marketing dataexcept which? A) Cross tabulations can be used to summarize experimental data. B) Cross tabulations clearly show the relationships between all the variables in a survey. C) Cross tabulations can be used to summarize observational data. D) Cross tabulations can be used to summarize questionnaire data. E) Cross tabulations have great flexibility.
238) Analyzing the data obtained during the marketing research project and presenting the results take place during which step of the five-step marketing research approach?
Version 1
90
A) Collect relevant information. B) Develop findings. C) Take marketing actions. D) Plan the budget. E) Identify constraints.
239) Once a market researcher has defined the problem, developed the research plan, and collected the relevant information, what is the next step in the five-step marketing research approach? A) Set budgets. B) Determine target market. C) Take marketing actions. D) Develop findings. E) Determine if there is a planning gap between desired findings and actual findings.
240) Making recommendations, implementing them, and evaluating results take place during which step of the five-step marketing research approach? A) Define the problem. B) Take marketing actions. C) Collect relevant information. D) Develop findings. E) Develop the research plan.
241)
Evaluating the results of a marketing decision involves
Version 1
91
A) asking prospective customers if they are likely to buy the product during a specified future time period. B) requesting the firm’s salespeople to estimate sales during a coming period. C) collecting data from marketing experts about changes in the environment. D) collecting projections from all regional sales managers and making projections based on a region-to-region basis. E) monitoring the marketplace to determine if action is necessary in the future.
242) Marketing teams must be vigilant in looking for ways to improve the analysis and results in order to learn lessons that might apply to future marketing research efforts. Evaluating the results of marketing research includes A) asking prospective customers if they are likely to buy the product during some future time period. B) requesting the firm’s salespeople to forecast sales during a coming period. C) determining if the marketing research and analysis used to develop the recommendations was effective. D) collecting projections from all regional sales managers and making projections based on a region-to-region basis. E) collecting data from marketing experts about changes in the environment.
243) The two aspects of the process for evaluating the results of a marketing decision are evaluating the decision itself and A) evaluating the sales results. B) conducting a SWOT analysis. C) evaluating the decision process used. D) beginning a new environmental scan. E) reallocating resources to become more efficient and effective.
Version 1
92
244) The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts is A) a prognostication. B) a sales forecast. C) a purchase extrapolation. D) marketing intuition. E) the market potential.
245)
A sales forecast is
A) the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts. B) sales goals based on past performances of individual sales representatives, used as motivation for productivity among this staff. C) the total sales from a product that could be generated with a hypothetical set of preferred environmental forces. D) the total industry sales generated by a product during a specified time period that results from specified environmental conditions. E) published information about competitors’ sales from the NAICS.
246)
Which of these is one of the three frequently used sales forecasting techniques? A) heuristic prognostications B) customer contracts C) trade association experts D) surveys of knowledgeable groups E) empirical studies
247) A(n)________Blank forecast is a type of forecast that involves estimating the value to be forecast without any intervening steps. Version 1
93
A) direct B) survey C) lost-horse D) lost-cause E) intention
248)
A direct forecast involves estimating the value to be forecast and
A) making decisions without any intervening steps. B) halving the highest values and doubling the lowest values to determine an acceptable forecast range. C) selecting the alternative that holds the greatest consensus within the management team. D) then conducting a sensitivity analysis to determine price elasticity. E) selecting the forecasting alternative that would allow a firm to survive financially even if the forecasts are incorrect.
249) A(n)________Blank forecast involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast. A) direct B) lost-horse C) buyers’ intentions D) indirect E) incremental
250)
Lost-horse forecasting involves
Version 1
94
A) admitting that the actions you have taken in the past have failed and removing those and similar actions from your list of alternatives. B) starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast. C) making estimates without any intervening steps. D) following a prescribed set of “directives” established before the research was even begun. E) selecting the forecasting alternative that would allow a firm to survive financially even if the forecasts were totally incorrect.
251) Sherrie sold about $800 worth of produce last weekend at a farmer’s market, but it was sunny and warm both days. This Saturday and Sunday are both supposed to be rainy, so she thinks fewer people will attend. She estimates she’ll only sell about three-fourths of her total for last time, or $600. This is an example of A) a direct forecast. B) a lost-horse forecast. C) a buyers’ intentions forecast. D) an indirect forecast. E) an incremental forecast.
252)
A survey of buyers’ intentions forecast involves
Version 1
95
A) starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast. B) making estimates without any intervening steps. C) asking prospective customers if they are likely to buy the product during some future time period. D) asking the firm’s salespeople to estimate sales during a coming period. E) selecting the forecasting alternative that would allow a firm to survive financially even if the forecasts were totally incorrect.
253)
A salesforce survey forecast involves
A) starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast. B) making estimates without any intervening steps. C) asking prospective customers if they are likely to buy the product during some future time period. D) asking the firm’s salespeople to estimate sales during a coming period. E) selecting the forecasting alternative that would allow a firm to survive financially even if the forecasts were totally incorrect.
254)
Trend extrapolation involves
Version 1
96
A) extending a pattern observed in past data into the future. B) selecting specific points on a graph of sales or market share, multiplying by the costof-living index, and allowing for a variation of plus or minus 3 percent. C) averaging the total sales or market share for the previous five years and multiplying that number by the expected GDP growth rate for the next year (say 1.5 percent) to arrive at the next year’s forecast. D) selecting a given percentage and using that number as a yearly predictive base regardless of changes in sales, revenue, or market share. E) collecting projections from all regional sales managers and making the final projection.
255) In trend extrapolation, the forecasting technique that involves using a straight line is called A) causal analysis. B) non-parametric regression. C) planning gap analysis. D) infinite dimension. E) linear trend extrapolation.
256)
Linear trend extrapolation is a form of trend extrapolation in which the A) pattern changes from year to year. B) pattern is described as a straight line. C) slope of the line is tied directly to profits. D) shape of the pattern is a hyperbola. E) pattern follows an S-shaped curve.
Version 1
97
257)
Figure 8-8 depicts which type of statistical forecasting (line A)?
A) causal analysis B) non-parametric regression C) curvilinear extrapolation D) infinite dimension E) linear trend extrapolation
258) One objective in the marketing research Jeff Gerst, who manages the Carmex social media properties, undertook using Facebook involved
Version 1
98
A) assessing the market for its new hand cream product. B) projecting the market size for the Carmex Moisture Plus line of premium lip balms for women. C) assessing the market for Carmex products outside the United States in countries where Facebook is active. D) evaluating the effectiveness of integrating Carmex Facebook promotions with traditional Carmex promotions. E) narrowing the number of flavors going into quantitative testing from three to two.
259) In conducting marketing research on Facebook, Carmex is considering using a marketing metric that measures how active its Facebook audience is with Carmex, such as when consumers post a comment on the Carmex wall or reply to one of the Carmex posts. This metric is called Carmex A) sentiment. B) share of voice. C) engagement. D) conversation velocity. E) likes.
260)
How do movie studios use marketing research?
261) Good marketing research requires great care especially because of inherent difficulties in asking consumers questions. What are the three basic problems faced by marketing researchers when trying to assess consumers’ willingness to buy products or services with which they are not familiar?
Version 1
99
262)
What are the five steps in the marketing research approach?
263) Explain why measures of success are important to effective decision makers and give an example of one.
264) What are some of the methods marketers use to conduct research and solve marketing problems? Include at least one specific print source.
265) Marketing information consists of secondary and primary data. Define each of these types of marketing information. Give examples for secondary and primary data.
Version 1
100
266) What is the basic difference between primary and secondary data, and what are the advantages and disadvantages of each?
267) The principal ways to collect new or primary data for a marketing study are by watching people and by asking them questions. Give two examples of each method.
268)
What is neuromarketing? What does it do? Why is it important to marketers?
269)
What is the difference between a semantic differential scale and a Likert scale?
270) What is a panel? How is it used in marketing research? What disadvantages are associated with panels?
Version 1
101
271) Briefly explain what a marketing experiment is. Include the definitions of dependent and independent variables and give examples of each.
272)
Briefly explain what a marketing driver is. Give three examples.
273) List the elements of an information technology system used to help answer marketing questions.
274)
What is data mining, and why is it used in marketing research?
275) What are the three actions a marketing manager must take in the final step of the five-step marketing research approach?
Version 1
102
276) How does a marketing manager's decision-making process continue after choosing the best alternative to solving a problem?
277)
Briefly explain the difference between a direct forecast and a lost-horse forecast.
278) Briefly explain the best-known statistical method, trend extrapolation, used by marketers to develop a company’s sales forecasts. In your explanation, explain the strengths and weaknesses of using this method.
Version 1
103
Answer Key Test name: Chap 08_16e_Kerin 1) D 2) C 3) A 4) A 5) B 6) E 7) E 8) C 9) D 10) B 11) E 12) E 13) C 14) D 15) B 16) C 17) D 18) C 19) E 20) A 21) B 22) D 23) E 24) A 25) E 26) E Version 1
104
27) B 28) A 29) C 30) D 31) E 32) D 33) B 34) C 35) A 36) E 37) A 38) D 39) B 40) D 41) E 42) B 43) E 44) D 45) A 46) C 47) D 48) B 49) E 50) A 51) C 52) B 53) E 54) D 55) A 56) E Version 1
105
57) B 58) B 59) E 60) C 61) C 62) D 63) C 64) B 65) E 66) C 67) D 68) A 69) E 70) B 71) C 72) D 73) B 74) D 75) D 76) D 77) A 78) D 79) C 80) A 81) C 82) B 83) D 84) C 85) D 86) E Version 1
106
87) A 88) A 89) A 90) C 91) E 92) C 93) C 94) C 95) D 96) A 97) C 98) A 99) C 100) D 101) E 102) E 103) C 104) C 105) E 106) E 107) D 108) D 109) C 110) D 111) A 112) D 113) C 114) B 115) E 116) A Version 1
107
117) B 118) D 119) D 120) C 121) D 122) A 123) E 124) C 125) D 126) C 127) D 128) E 129) A 130) D 131) C 132) A 133) D 134) D 135) D 136) C 137) E 138) B 139) D 140) D 141) E 142) D 143) A 144) C 145) D 146) D Version 1
108
147) A 148) C 149) C 150) D 151) B 152) E 153) E 154) E 155) C 156) B 157) D 158) A 159) E 160) C 161) A 162) E 163) C 164) D 165) B 166) B 167) D 168) D 169) D 170) C 171) D 172) D 173) C 174) A 175) C 176) B Version 1
109
177) B 178) E 179) B 180) A 181) D 182) B 183) E 184) D 185) B 186) D 187) C 188) E 189) C 190) B 191) E 192) C 193) D 194) D 195) C 196) D 197) E 198) B 199) A 200) A 201) D 202) B 203) B 204) B 205) E 206) C Version 1
110
207) B 208) A 209) E 210) B 211) D 212) B 213) C 214) D 215) C 216) A 217) E 218) B 219) C 220) A 221) D 222) A 223) E 224) E 225) E 226) B 227) C 228) D 229) C 230) A 231) B 232) D 233) A 234) E 235) E 236) A Version 1
111
237) B 238) B 239) D 240) B 241) E 242) C 243) C 244) B 245) A 246) D 247) A 248) A 249) B 250) B 251) B 252) C 253) D 254) A 255) E 256) B 257) E 258) E 259) C
Version 1
112
CHAPTER 9 1)
Tony Hsieh’s most important contribution at Zappos was to A) immediately change its product mix. B) develop its segmentation strategy. C) focus on value-oriented customers. D) focus on unknown brands. E) shift to a more transactional focus.
2)
The primary focus of Zappos’s initial market segmentation strategy was to sell
A) shoes and other products to people who will buy them online and like to use mobile technology. B) a wide selection of leather shoes and boots to high-end retailers. C) all types of shoes, accessories, and clothing to department and fashion discount stores for reasonable prices. D) Spanish novelties and accessories to organizations that typically resell them. E) shoes in its own retail stores to those who prefer face-to-face interaction.
3)
Zappos provides value to its customers by
A) offering the best selection of shoes and the best service to online shoppers. B) designing shoes for every type of occasion. C) dividing all their customers into two distinct segments: people shopping for low price and people shopping for style. D) offering the best access to fashionable shoes through multiple channels of distribution. E) maintaining the simplest method of pricing to make the purchase process easy.
4)
Which statement about Zappos is most accurate?
Version 1
1
A) Zappos limits its inventory to a selection of high-end fashion footwear. B) Zappos makes recommendations for purchases based on past ones and even the device being used to shop. C) Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service. D) Zappos is so successful because it has chosen a single mission to “sell shoes and only shoes.” E) Zappos offers a 30/60/90 return policy whereby refunds are based on how long you have had the shoes.
5) According to Tony Hsieh, founder of Zappos, said that the company devotes the greatest amount of time to A) seeking new and unusual styles of shoes from all over the world. B) improving the website to make it faster, more interesting, and fun. C) seeking new markets that will go beyond the Internet. D) finding the fastest and least expensive modes of delivery for its products. E) finding ways to improve customer service levels.
6)
Zappos offers up to $5,000 to anyone who A) identifies a completely new market segment with a product to match it. B) finds a way of improving service to online customers. C) takes the customer-loyalty training class and decides to quit anyway. D) finds a shoe-related product that Zappos does not already carry. E) creates a humorous theme for one of the monthly company meetings.
7)
Being adventurous, creative, and open-minded is an example of one of Zappos’s
Version 1
2
A) target markets. B) best practices being adapted from its new owner, Amazon.com. C) ten core values. D) supplier requirements. E) long-term goals.
8) Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is A) consumer differentiation. B) psychographics. C) market segmentation. D) market delineation. E) aggregation marketing.
9)
Market segmentation is
A) the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time. B) sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service. C) disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person’s unique needs. D) aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. E) the belief that it is possible to satisfy every customer’s needs if you can identify the correct segment within which they belong.
10) Market segmentation involves aggregating prospective buyers into groups that have common needs and will
Version 1
3
A) pay attention to marketing messages. B) respond similarly to a marketing action. C) be responsive to marketing research. D) use the same payment methods. E) comply with the organization’s core values.
11) New Balance has many offerings. It makes the Minimus line of shoes with a Vibram outsole and REVlite cushioning for those who want to “feel the trail.” Its 1260v2 shoe incorporates Stabilicore technology to “deliver a plush, smooth, and stable ride.” And its top of the line, 990v3 traditional running/walking shoe uses a “premium pigskin upper with mesh inserts for breathability, a stability-enhancing ABZORB insole, and ENCAP to promote a healthy gait.” The strategy of appealing to different types of customers in this way is an example of A) mass customization. B) product definition. C) market segmentation. D) single chain marketing. E) market specific selection.
12)
Market segments are
A) the relatively heterogeneous groups of prospective buyers that result from the market segmentation process. B) all buyers of a product or service who have previously purchased a particular firm’s products or services and who intend to repeat that purchase sometime in the future. C) the smallest number of buyers that have similar needs but do not react similarly in a buying situation. D) the relatively homogenous groups of prospective buyers that result from the market segmentation process. E) all potential buyers of a product or service who intend to purchase a firm’s products or services but who have not yet done so.
Version 1
4
13) A relatively homogenous group of prospective buyers that results from the market segmentation process is a(n) A) market segment. B) target market. C) customer base. D) ultimate consumer. E) preferred market.
14)
To be identified as a market segment, members of the group must A) be similar in terms of their consumption behavior. B) represent a large share of the entire market and have buying power. C) have diverse needs and have potential for future growth. D) have diverse needs and be willing and able to purchase the product. E) have the potential for future growth and increased profit or ROI.
15) A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as A) market penetration. B) points of difference. C) market differentiation. D) product positioning. E) product differentiation.
16)
Product differentiation is
Version 1
5
A) a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs. B) the unique combination of product benefits received by targeted buyers. C) those characteristics of a product that make it superior to competitive substitutes. D) a marketing strategy using different marketing mix actions to help consumers perceive the product as being different and better than competing products. E) the legal requirement that requires a specified degree of distinction between products to ensure an organization’s intellectual property rights.
17) Google’s Pixel 6 smartphone provides an advanced software experience, including highend photo processing, video rendering, and speech recognition. This sets the smartphone apart from its competitors and is part of Google’s________Blank strategy. A) product segmentation B) market expansion C) product differentiation D) usage segmentation E) psychographic segmentation
18) Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective barrier to inner layers. This new formula helps to separate the Colgate product from its top competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here? A) product differentiation B) product segmentation C) market expansion D) usage segmentation E) psychographic segmentation
Version 1
6
19) A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can A) increase sales and profitability. B) stand up to legal scrutiny. C) be socially responsible. D) create sustainable demand. E) produce product differentiation.
20) Market segmentation stresses________Blank and relating them to specific marketing actions. A) aligning tasks to match competitor tactics B) grouping people according to similar needs C) dividing people within a market randomly into equally sized groups D) dividing people into the smallest groups possible E) identifying potential new buyers who are not yet familiar with a new product
21) Small athletic shoe manufacturers such as Vans target niche markets like street culture or action sports enthusiasts, making shoes designed to satisfy the needs of these different specific groups of customers. This strategy is an example of A) market segmentation. B) mass customization. C) customized manufacturing. D) single chain marketing. E) market specific selection.
22) The process of segmenting a market and selecting specific segments as targets is the link between________Blank and the organization’s marketing program.
Version 1
7
A) self-regulatory industry standards B) government regulations C) top-level management D) buyers’ or market needs E) controllable environmental factors
23)
_______Blank links market needs to an organization’s marketing program. A) Market segmentation B) Product design C) Marketing protocol D) Marketing mix development E) Product selection
24)
Zappos’s original target market consisted of people who wanted all of theseexcept which? A) to receive quick delivery of their merchandise B) to buy sustainable shoes, accessories, and clothing C) to shop online in the convenience of their own homes D) to return goods for free if dissatisfied E) to choose from a wide selection of shoes
25) A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is a
Version 1
8
A) needs table. B) cross-tabulation. C) market-product grid. D) growth-share matrix. E) product differentiation table.
26)
A market-product grid is a
A) visual representation of all products offered within a specific product class. B) framework used to compare the relative market share of one firm’s product offerings to those of its competitors. C) technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. D) framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. E) technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
27) A market-product grid is a framework to relate the________Blank to products offered or potential marketing actions by an organization. A) market segments of potential buyers B) marketing objectives of potential products C) total anticipated revenue annually D) total anticipated profit annually E) market share of the closest competitor
28) In the segmentation process, pairing slide sleepers with firm pillows, back sleepers with medium pillows, and stomach sleepers with soft pillows would be done with a
Version 1
9
A) needs table. B) cross-tabulation. C) market-product grid. D) growth-share matrix. E) product differentiation table.
29)
The table in Figure 9-2 is known as a
A) needs table. B) cross-tabulation. C) market-product grid. D) growth-share matrix. E) product differentiation table.
Version 1
10
30) Based on the market research in Figure 9-2, which market-product combination is likely to be most lucrative for a new pillow manufacturer?
A) stomach sleeper-firm pillow B) back sleeper-medium pillow C) side sleeper-firm pillow D) stomach sleeper-soft pillow E) side sleeper-soft pillow
31) The effort and expense of segmentation should be undertaken by a business firm only when A) it can comfortably maintain market share. B) it expects this to result in increased sales and profits. C) it can also assume social responsibility. D) the firm’s resources are very scarce. E) it desires to provide the best quality products on the market.
32)
Which statement regarding when and how to segment markets is most accurate?
Version 1
11
A) Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors. B) Market segmentation is only feasible for large corporations; small businesses don’t have the resources to engage in the process. C) Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets. D) If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. E) Market segmentation strategies work less than 10 percent of the time.
33) When expenses are greater than the potential increased sales from market segmentation, a firm should A) not consider market segmentation at this time. B) combine departments within the company to make the process more streamlined. C) reduce production costs or increase prices to facilitate the segmentation process. D) seek alternate channels of distribution, including Internet sales. E) discontinue manufacturing any products that are not in the mature stage of their product life cycle.
34)
All of these are market segmentation strategiesexcept which? A) build-to-order B) multiple products, multiple market segments C) one product, multiple market segments D) multiple products, one segment E) mass customization
35) When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids
Version 1
12
A) the extra cost of developing and producing additional versions of the product. B) creating a customer service gap. C) indirect distribution and logistics problems. D) restructuring the firm’s strategic planning. E) amortization costs of product enhancements.
36) When compared to a multiple products, multiple market segments strategy, a one product, multiple market segments strategy A) is a much more effective means of meeting consumers’ individual needs. B) creates greater savings in production costs. C) is a more effective way of meeting organizational objectives. D) has significantly higher distribution costs. E) is more profitable since a firm can charge the new segments higher prices without changing the product.
37) One marketing action that can be taken to sell a single product or service to multiple market segments is to A) develop and produce another version of the product. B) manufacture products that appeal to different markets. C) develop a separate promotional campaign. D) purchase another firm that has additional products that would appeal to multiple markets. E) issue stock to fund additional research and development for new products.
38) The annualStreet & Smith’s Baseball magazine has 15 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. What is the basis of its market segmentation strategy?
Version 1
13
A) psychographic segmentation B) retail outlet segmentation C) demographic segmentation D) behavioral segmentation E) geographic segmentation
39) The annualStreet & Smith’s Baseball magazine uses 15 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. The publisher is using which segmentation strategy? A) multiple products with one segment B) one product with one channel of distribution C) one product with multiple market segments D) one product with changes based on customer behavior E) multiple products with multiple segments
40) Which of these is a disadvantage of employing a multiple products, multiple market segments strategy ifnot implemented well? A) inability to meet high demand B) reduced quality and higher prices C) failure to meet diverse customer needs D) employee dissatisfaction E) frequent research and development failures
41)
Which of these is an example of a multiple products, multiple market segments strategy?
Version 1
14
A) College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the United States. B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. C) Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. D) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes. E) Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
42)
Which of these is an example of a multiple products, multiple market segments strategy?
A) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States. B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. D) Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people who want to use their microwave ovens. E) Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
43) Kellogg’s has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but worthwhile if it adds to the manufacturer’s profits and
Version 1
15
A) meets standards for new product testing. B) uses the same promotion and packaging for all segments. C) cannibalizes the earlier products. D) stabilizes competition. E) better serves customers’ needs.
44) Tailoring products or services to the tastes of individual customers on a high-volume scale is A) family branding. B) mass customization. C) product differentiation. D) economies of scale marketing. E) build-to-order.
45) Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models. There is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of A) mass customization. B) specialty customization. C) virtual merchandising. D) one product and multiple market segments. E) multiple products and multiple market segments.
46) ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of
Version 1
16
A) family branding. B) mass customization. C) multiple products and multiple market segments. D) one product and multiple market segments. E) specialty customization.
47) Lands’ End will custom-fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of A) family branding. B) mass customization. C) “Tiffany/Walmart” marketing. D) market melding. E) specialty customization.
48) Name Maker is an online company that sells, among other items, high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift wrapping is an example of A) family branding. B) mass customization. C) synergistic marketing. D) “Tiffany/Walmart” marketing. E) specialty customization.
49)
Manufacturing a product only when there is an order from a customer is referred to as
Version 1
17
A) order customization. B) a one product, one market segment strategy. C) synergistic marketing. D) build-to-order. E) specialty customization.
50) Nike employs a________Blank strategy with itsNike by You service which configures shoes to a customer’s specific preferences for colors, solos, logos, and added initials and numbers. A) product sampling B) product clustering C) build-to-order D) usage segmentation E) psychographic segmentation
51) Wonk is a unique furniture company that design, builds, and retails in Brooklyn, NY. You can customize your design with creative input, including personalizing items with wood and lacquer options or environmentally conscious materials and finishes, though the options are not unlimited. Wonk relies on A) order customization. B) a one product, one market segment strategy. C) build-to-order manufacturing. D) specialty customization. E) mass customization.
52)
Organizational synergy is the increased customer value achieved through
Version 1
18
A) performing organizational functions more efficiently. B) more discounts or larger rebates at the point of sale. C) involvement of the ultimate consumer in product design. D) an increase in the knowledge of competitors. E) shared ownership of the organization through publicly traded stock.
53) The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently is referred to as A) functional aggregation. B) organizational synergy. C) task segmentation. D) task amalgamation. E) project valuation.
54) The ultimate criterion for an organization’s marketing success is that________Blank as a result of increased synergies. A) costs decrease B) market share increases C) product deficiencies decrease D) customers should be better off E) new products flourish
55) All of these are examples of increased customer value from organizational synergyexcept which?
Version 1
19
A) lower prices B) increased brand awareness C) more products D) improved distribution E) improved quality of existing products
56) ________Blank occurs when a new product or a new retail chain steals customers and sales from the organization’s older products and retail outlets. A) Cannibalization B) Amortization C) Product appropriation D) Product pilfering E) Marketing Darwinism
57) When Ann Taylor, a well-known retailer of sophisticated women’s clothing, started losing sales to its own LOFT stores that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as A) amortization. B) guerrilla marketing. C) shrinkage. D) marketing Darwinism. E) cannibalization.
58) When marketers want to use product differentiation and market segmentation strategies, what question should they ask when considering the potential for cannibalization with these strategies?
Version 1
20
A) Will our new products steal customers or sales from our older ones? B) Will the products compete head-to-head with those of a competitor? C) Can this action successfully draw customers away from competitors? D) Are there enough similarities within the market segment to warrant such high costs? E) Will this action eliminate the need for individualized advertising and promotion?
59)
Cannibalization would most likely occur if
A) Dell adds high-end speaker systems to its line. B) General Mills launches Caramel Crunch Cheerios. C) General Motors markets a motorcycle similar to the Can-Am Spyder Roadster threewheel bike. D) Pillsbury adds boxed sugar to its product mix. E) Procter & Gamble adds a new line of baby clothing to its Pampers stable of products.
60) offer
Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to
A) a low-priced product to a high-income or high net worth segment. B) a high-priced product to a low-income or low net worth segment. C) different variations of the same basic offering to high-end and low-end segments. D) a high-priced and a low-priced offering to a single market segment. E) entirely different offerings to high-end and low-end segments.
61)
Which of these is an example of a Tiffany/Walmart strategy?
Version 1
21
A) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States. B) A new movie used several different movie trailers; one showed the action scenes in order to attract one audience and the other showed romantic scenes to attract another audience. C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. D) Gap’s Banana Republic chain sells blue jeans for $78, whereas its Old Navy stores sell a slightly different version for $32. E) Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
62) The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of A) mass customization. B) a Tiffany/Walmart strategy. C) one product and multiple market segments. D) price discrimination. E) psychographic market segmentation.
63) You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is an example of A) mass customization. B) organizational synergy. C) one product and multiple market segments. D) price discrimination. E) a Tiffany/Walmart strategy.
Version 1
22
64)
The purpose of the five key steps in segmenting and targeting markets is to A) identify competitors that provide similar products that satisfy a firm’s customers’
needs. B) provide guidance to reposition a firm’s products. C) generate new-product ideas for firms that are not growing in market share. D) link market needs of customers to the organization’s marketing program. E) correlate directly to each of the five environmental forces.
65) The first step in segmenting and targeting markets that links customer needs to marketing actions is to A) group potential buyers into segments. B) develop a market-product grid and estimate size of the overall market. C) select target markets. D) group products to be sold into categories. E) take marketing actions to reach target markets.
66) The final step in segmenting and targeting markets that links customer needs to marketing actions is to A) take marketing actions to reach target markets. B) group potential buyers into segments. C) select target markets. D) group products to be sold into categories. E) develop a market-product grid and estimate size of the overall market.
67) There are five steps involved in segmenting and targeting markets. What should a marketer do after grouping products to be sold into categories? Version 1
23
A) Create product groupings. B) Identify market needs. C) Take marketing actions to reach target markets. D) Develop a market-product grid and estimate size of markets. E) Form prospective buyers into market segments.
68) A marketing manager goes through several steps to put a market segmentation plan into effect. This includes forming market segments and then________Blank without encountering excessive costs. A) eliminating potential nonbuyers B) identifying segmentation variables C) selecting the market segments to target D) redirecting their purchase behaviors E) ignoring any and all similarities
69)
All of these are criteria used for forming market segmentsexcept which? A) difference of needs of buyers among segments B) potential for increased profit C) cost of reaching the segment D) potential of a marketing action to reach a segment E) simplicity and cost-effectiveness of assigning potential buyers to segments
70)
Which of these is a criterion used in forming market segments?
Version 1
24
A) similarity of segments to competitors’ segments B) differences between potential suppliers or distributors C) differences of needs of buyers within a segment D) market size of the segment E) potential of a marketing action to reach a segment
71)
The best segmentation approach for business firms is the one that A) makes it easiest to reach the segment. B) maximizes the opportunity for future profit and ROI. C) that differs from the most common approach within the industry. D) creates awareness among potential buyers within a segment. E) is simplest and least costly in assigning potential buyers to segments.
72)
All of these are reasons to segment a marketexcept which? A) The ability to assign buyers to a segment is simple and cost-effective. B) It would cause an increase in market share or profit. C) All the buyers in the entire market have similar wants and needs. D) There is a potential marketing action to reach it. E) There are different wants and needs of buyers in the entire market.
73)
All of these are criteria that would support forming market segmentsexcept which? A) The ability to assign buyers to a segment is cost-effective and simple. B) The result of segmenting will cause an increase in market share or profit. C) There are significant similarities among buyers in the market segment. D) There is a potential marketing action to reach the segment. E) The cost to reach the segment exceeds the expected returns.
Version 1
25
74) Selling a product to a different market segment usually requires a different marketing action that, in turn, means greater costs. If increased revenues don’t offset extra costs of this action, a marketer should A) increase the advertising budget. B) prune the product offerings. C) family brand the products. D) combine segments. E) group products into categories.
75) Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be________Blank a segment, and the differences must be________Blank segments. A) between; among B) throughout; absent in C) within; among D) absent in; throughout E) among; across
76)
Which statement about the criteria for forming market segments is most accurate?
A) Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar. B) Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different. C) The needs of buyers should be different, both between segments and within segments. D) The needs of buyers should be the same, both between segments and within segments. E) If there are any differences at all, you should forgo any segmentation.
Version 1
26
77) Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer which question? A) Is this product useful on a global scale? B) Is it possible to reposition this product? C) Is there too much competition for this product? D) Is the market loyal to the product? E) Would segmentation be worth doing and is it possible?
78) About three percent of the population has some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these allergies as a separate segment. To implement this segmentation strategy, restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment. This multiple product, multiple markets segment strategy would have the greatest difficulty meeting which criterion used to form market segments? A) different needs of buyers among different segments B) similarity of needs of potential buyers within a segment C) simplicity and cost-effectiveness of assigning potential buyers to segments D) potential for increased profit and ROI E) potential of a marketing action to reach a segment
79) Four general categories are used to segment consumer markets, one of which is________Blank segmentation. A) supplier B) demand C) objective D) behavioral E) product
Version 1
27
80)
Segmentation based on where prospective customers live or work is referred to as A) zip code segmentation. B) geographic segmentation. C) trade area segmentation. D) district segmentation. E) NAICS code segmentation.
81)
Region and city size are both variables used to employ________Blank segmentation. A) geographic B) behavioral C) district D) psychographic E) demographic
82) Campbell Soup Co. found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too spicy for Americans in the East and not spicy enough for those in the West and Southwest. Today, Campbell’s plants in Texas and California produce a hotter nacho cheese sauce than what is produced in the other plants. Campbell’s is using________Blank segmentation. A) demographic B) behavioral C) economic D) geographic E) psychographic
83)
Which statement best illustrates geographic segmentation?
Version 1
28
A) GE builds a downsized microwave oven to hang under kitchen cabinets. B) Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. C) In China, KFC sells a spicier chicken at restaurants farther from the coastal areas. D) A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. E) A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.
84) Universal Concerts wants to bring a series of music concerts to Canada next year. In general, western Canadians prefer country music while eastern Canadians prefer rock. In fact, a country music event in eastern Canada is very likely to have lots of empty seats. To maximize revenue, Universal Concerts should segment its Canadian market according to A) geographic characteristics. B) demographic characteristics. C) music format characteristics. D) behavioral characteristics. E) psychographic characteristics.
85) Variables that are based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers are used in which segmentation base? A) personality B) usage C) needs D) demographic E) behavioral
86)
Which of these is a consumer market demographic segmentation variable?
Version 1
29
A) personality B) gender C) usage rate D) needs E) region
87) More than half of all U.S. households are composed of only one or two persons, so Jimmy Dean offers one serving frozen breakfasts, such as its Three Cheese Omelets and Sausage Breakfast Bowls. Jimmy Dean is using________Blank as the basis to segment its market. A) usage rates B) usage patterns C) demographic characteristics D) behavior characteristics E) psychographic characteristics
88) Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don’t remember the Old Spice brand sold to their grandfathers many years ago. P&G is using which type of segmentation variable? A) behavioral B) demographic C) lifestyle D) geographic E) psychographic
Version 1
30
89) The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these ads is the traditional family, it appears that the State of Alabama Board of Tourism has segmented the market using________Blank variables. A) demographic B) regional C) socioeconomic D) geographic E) psychographic
90)
Which statement demonstrates the formation of a segment based on household size?
A) Campbell’s makes a spicier nacho cheese sauce for its distributors in Texas than it does in Maine. B) GE built a smaller microwave oven to hang under kitchen cabinets. C) Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. D) A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. E) A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.
91) At a Hallmark store you can find several lines of greeting cards, including Fresh Ink, Nature’s Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards—all made by Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany line is designed to appeal to African Americans. This is an example of________Blank segmentation.
Version 1
31
A) regional B) lifestyle C) demographic D) geographic E) psychographic
92)
Which statement regarding segmentation bases is most accurate?
A) The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective. B) Marketers should use segmentation bases in this order to reduce potential costs: behavioral, demographic, psychographic, and geographic. C) The use of psychographic variables for segmentation is easiest for most consumer products. D) Behavioral segmentation is based primarily on personality. E) Geographic segmentation is rarely used today because of the Internet.
93) Segmentation based on some subjective mental or emotional attributes, aspirations, or needs of prospective customers is A) behavioral segmentation. B) affective segmentation. C) socioeconomic segmentation. D) psychographic segmentation. E) sociocultural segmentation.
94)
All of these are psychographic segmentation variablesexcept which?
Version 1
32
A) lifestyle B) needs C) income D) PRIZM classification E) personality
95)
Personality and lifestyle are both variables used to employ________Blank segmentation. A) geographic B) behavioral C) attitudinal D) psychographic E) demographic
96) Magazines such asCondé Nast Traveler, Field & Stream, Golf Digest, andFitness focus on how people live their lives, and thus all use a________Blank segmentation strategy. A) psychographic B) behavioral C) situational D) socioeconomic E) geographic
97) The Claritas PRIZM lifestyle segmentation is based on the belief that “birds of a feather flock together.” It combines________Blank with a geographic component.
Version 1
33
A) situational segmentation B) socioeconomic segmentation C) demographic segmentation D) psychographic segmentation E) behavioral segmentation
98) Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as A) demographic segmentation. B) psychographic segmentation. C) geographic segmentation. D) behavioral segmentation. E) socioeconomic segmentation.
99) Segmentation based on what product features are important to different customers is a form of A) demographic segmentation. B) behavioral segmentation. C) psychographic segmentation. D) geographic segmentation. E) socioeconomic segmentation.
100) Retail store type and usage rate are both variables used to employ________Blank segmentation.
Version 1
34
A) geographic B) demographic C) loyalty D) psychographic E) behavioral
101)
Behavioral segmentation may be based on A) lifestyles and demographics. B) retailer and wholesaler behaviors. C) geographic and demographic criteria. D) product features and user status. E) demand and supply.
102) Alamo, a national car rental firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using________Blank segmentation. A) geographic B) demographic C) loyalty D) psychographic E) behavioral
103) College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late-night snack. However, their dorm rooms are often woefully short of space. MicroFridge understands this and markets a combination microwave, refrigerator, freezer, smoke sensor, and charging station appliance targeted to these students. MicroFridge is most likely using which basis of segmentation?
Version 1
35
A) sociocultural segmentation B) psychographic segmentation C) geographic segmentation D) behavioral segmentation E) socioeconomic segmentation
104) Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3-D technology. Customers prefer different options, so Samsung uses which type of segmentation variable based on their viewing preferences? A) demographic segmentation B) psychographic segmentation C) behavioral segmentation D) geographic segmentation E) socioeconomic segmentation
105) Many companies have cut travel budgets so that fewer businesspeople are authorized to fly first class. Despite the shrinking pool of business-class travelers, British Airways has grown market share for its trans-Atlantic business class by offering greater comfort. Promotions to frequent flyers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day’s schedule. The segmentation strategy of British Airways is an example of A) life stage segmentation. B) geographic segmentation. C) social class segmentation. D) behavioral segmentation. E) psychographic segmentation.
106) ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. Here, ExxonMobil is using which segmentation variable?
Version 1
36
A) needs B) lifestyle C) behavioral D) psychographic E) demographic
107) as
The quantity consumed or patronage (store visits) during a specific period is referred to
A) usage rate. B) purchase metric. C) consumption index. D) consumption rate. E) demand amount.
108)
Usage rate is the
A) percentage of total possible users divided by the total number of consumers who actually use a product or service. B) number of times a customer uses or recommends a product or service annually. C) quantity consumed or patronage (store visits) during a specific period. D) maximum number of times a customer has used a product or service historically. E) profits a firm earns from customers who consume a particular product or service.
109) Massage Envy offers massage services on a subscription basis, so it targets consumers that desire to get multiple treatments per month. Massage Envy likely segments its market by
Version 1
37
A) usage rate. B) benefits offered. C) demographics. D) geography. E) lifestyle.
110)
The market segmentation strategy known as frequency marketing focuses on
A) trial. B) the average number of times a person in the target audience is exposed to an advertisement. C) consumption preferences. D) turnover. E) usage rate.
111) Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on________Blank segmentation. A) geographic B) behavioral C) psychographic D) demographic E) rate-based
112) Hotel programs that encourage passengers to repeatedly stay at their collections of properties focus on usage rate and employ________Blank strategy.
Version 1
38
A) a rate of recurrence B) a product utilization C) an incidence D) a frequency marketing E) a consumption index
113)
The 80/20 rule suggests that
A) around 80 percent of a firm’s inventory should be readily available while 20 percent should be reserved for emergency demand. B) nearly 80 percent of a firm’s first-time users will become brand loyal while only 20 percent will use the product only once and then abandon it. C) about 80 percent of a firm’s sales are obtained from about 20 percent of its customers. D) 80 percent of a firm’s marketing program expenses are tax deductible while 20 percent are not. E) about 80 percent of a firm’s products will be sold to ultimate consumers while 20 percent goes to organizational buyers.
114)
The 80/20 rule is most closely related to which basis of segmentation? A) geographic B) psychographic C) opportunistic D) demographic E) behavioral
115) Todd Harris and Associates, a New York sales promotion agency, discovered from an analysis of its files that one-quarter (or 25 percent) of its clients generated more than threequarters (or 75 percent) of its fees and commissions. This is an example of what concept?
Version 1
39
A) the two quarter gap B) the 80/20 rule C) the law of usage D) the 75/25 exchange E) Paget’s Law
116) Customer lifetime________Blank represents the financial worth of a customer to a company over the course of their relationship. A) revenue B) usage C) profitability D) value E) exchange
117) The calculation for________Blank considers a customer’s product or service usage rate, their loyalty to the company, and the firm’s cost to serve that customer over time. A) quarterly profit B) customer lifetime value C) organizational segmentation D) break-even point E) demand elasticity
118)
Which of these fast-food restaurants has the highest customer lifetime value?
Version 1
40
A) Wendy’s B) McDonald’s C) Burger King D) McDonald’s and Burger King are roughly tied for highest E) Wendy’s and Burger King are roughly tied for highest
119) As an owner of a Wendy’s fast-food restaurant located near a large urban university, you need to analyze your customers and determine which segmentation base and its associated variables you will use to segment your target market. Which segmentation base and associated variables should you use? A) psychographic: VALS and personality B) demographic: gender and age C) behavioral: students and nonstudents D) geographic: city size and zip code E) transportation mode: car, bike, public transportation, and none (walking)
120) ________Blank are character descriptions of a brand's typical customers, complete with fictional narratives. A) Identities B) Roles C) Personas D) Inhabitants E) Protagonists
121)
In marketing, personas may capture
Version 1
41
A) the top values of a company. B) the reasons a user chooses a competitor’s product. C) the payments history of a current user of a company’s product. D) a day in the life of a typical user of the product. E) the size of the largest target market.
122)
Which of these is a basis used to segment U.S. organizational markets? A) geographic B) psychographic C) income D) prospects E) education
123) Variables such as statistical area, the North American Industry Classification System (NAICS) code, and usage rate are all examples of ways to A) differentiate products. B) forecast sales for a consumer market. C) segment an organizational market. D) promote protectionism. E) calculate a net income.
124)
Which statement about market segmentation for organizational markets is most accurate?
Version 1
42
A) Criteria for segmenting markets are the same whether the market is composed of consumers or organizations. B) Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets. C) Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets. D) Consumer markets use market segmentation criteria while organizational markets do not. E) The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process.
125) Evergreen Air Center in Marana, Arizona, is the world’s biggest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 a month for its storage service. The warm, dry air where the operation is located serves as a cheap and effective airplane preservative. Which segmentation variable might Evergreen use to segment the market? A) NAICS sector (industry) B) number of locations C) who buys, such as individual buyer or buying groups D) metropolitan statistical area E) number of employees
126) The United Talent Agency represents country singer Trace Adkins in negotiations with various venues in which he could perform. If the agency decided the singer would not perform at venues located in communities that have fewer than 100,000 residents, it would be using________Blank segmentation. A) entertainment B) psychographic C) geographic D) usage rate E) behavioral
Version 1
43
127) Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy. One of these devices is capable of generating energy equal to $2 million of natural gas per year. The company believes its target market consists of businesses similar to its first customer, a fertilizer manufacturer that was located in a rural area. If the firm expands to the United States, it most likely will use which bases to segment its market? A) behavioral and geographic B) number of employees and behavioral C) purchase location and purchase type D) NAICS code and geographic E) behavioral and NAICS code
128) If Wendy’s customers are buying an eating experience, which grouping would make the most sense for the products Wendy’s sells? A) grouping by caloric intake B) grouping by price C) grouping by meal occasion D) grouping by usage rate E) grouping by level of uniqueness
129) Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings such as the pet food aisle or the soft drink aisle. Why would Safeway display and sell product groupings in this manner?
Version 1
44
A) The groupings increase the number of market-product combinations on the marketproduct grid, which makes it a more manageable framework for subsequent analysis. B) This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility. C) The products are grouped so people can relate to them in a more meaningful way when they shop. D) Product groupings can be generated quantitatively to show which adhere to the 80/20 rule. E) Suppliers get preferential treatment based upon the number of different UPCs they provide.
130) Hallmark places its scrapbook materials, photo albums, and related supplies into one product group because A) it is easier to forecast future sales since there are fewer market-product combinations. B) customers can buy in quantity and take advantage of quantity discounts. C) their suppliers provide free displays and shelving to highlight Hallmark’s products. D) it helps buyers relate to the products and make decisions in a more meaningful way. E) it allows customers to compare price and quality with competitors who display their products in a similar manner.
131)
A market-product grid is a framework to relate
A) total estimated expenses for each product sold to each market segment. B) total anticipated revenue for each product-market segment combination. C) total anticipated profit for each product sold to each market segment. D) the market segments of current buyers to relative market share compared to the largest competitor. E) the market segments of potential buyers to meaningful product groupings.
Version 1
45
132)
Each cell of a complete market-product grid shows the A) relative market share. B) estimated market size. C) investment required to reach the market. D) market growth rate. E) estimated profit.
133) After establishing the market segments and product groupings on a market-product grid, the next step is to A) fill in the appropriate cells with precise statistical data from primary and/or secondary sources. B) estimate, with intelligent guesstimates as necessary, the market size for each cell. C) total the vertical columns to identify the greatest marketing synergies and efficiencies. D) total the horizontal rows to identify greatest operations/production synergies and efficiencies. E) identify a marketing action for every product-market combination in the grid.
134)
One advantage of a market-product grid is that it can be used to
A) make cost-cutting decisions under conditions of uncertainty. B) screen many new-product ideas in order to select the one with the best long-run market potential. C) determine which target market segments to select and which product groupings to offer. D) select representative samples of consumers for marketing research studies. E) relate the product life cycle to consumer demand.
135) Determining the size of specific markets within a market-product grid is helpful in determining which target market segments to select and Version 1
46
A) how to implement the 80-20 rule. B) which products to group into meaningful categories. C) how to implement a harvesting strategy. D) which product groupings to offer. E) which products to reposition.
136) Figure 9-7 shows the market-product grid for a Wendy’s restaurant next to a large urban university campus. The best way to describe how the student market is segmented is
A) the level of discretionary income the student has. B) whether the student pays in-state or out-of-state tuition. C) whether the student has the disposable income to eat at Wendy’s. D) combining where the student lives, if on campus, or what time the student commutes. E) the meals eaten at the Wendy’s restaurant.
Version 1
47
137) Figure 9-7 shows the market-product grid for a Wendy’s restaurant next to a large urban university campus. Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The meal occasion (product grouping) that comprises the largest product grouping is
A) breakfast. B) lunch. C) between-meal snack. D) dinner. E) after-dinner snack.
Version 1
48
138) Figure 9-7 shows the market-product grid for a Wendy’s restaurant next to a large urban university campus. Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The largest potential market segment consists of
A) students that live in a dormitory. B) students that live in an apartment. C) students that are day commuters. D) students that are night commuters. E) faculty or staff members.
139)
All of these are criteria used for selecting target market segmentsexcept which?
Version 1
49
A) compatibility with the organization’s objectives and resources B) market size C) simplicity and cost of assigning potential buyers to segments D) competitive position E) cost of reaching the segment
140)
Which criterion is used for selecting a target market? A) similarity of needs of potential buyers within a segment B) difference of needs of sellers between segments C) feasibility of a marketing action to reach a segment D) cost of reaching the segment E) simplicity and cost of assigning potential buyers to segments
141)
A firm is most likely to decideagainst targeting a segment that A) would require entry in a global marketplace. B) requires more than one marketing action. C) its competitors have chosen to avoid. D) is incompatible with its company’s goals or objectives. E) has a growth potential that would require increasing the current workforce.
142) Best Foods Co. is considering expanding beyond the regional market segments now served by its Hellmann’s mayonnaise. One criterion management wants to use to evaluate potential new geographic market segments is whether additional real estate must be purchased or leased to serve new segments. This is an example of which criterion used to select target market segments?
Version 1
50
A) Best Foods’ competitive position in the segment B) Best Foods’ product groupings C) expected growth of the market segment D) size of the market segment E) cost of reaching the segment
143) A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a target segment, this market may A) have no expected growth. B) not be compatible with the company’s current resources. C) not be worth targeting since its market size is very small. D) not be readily accessible to the firm’s marketing programs. E) be relatively expensive to reach.
144) During its market segmentation process for the Nike Air Jordan 6 Retro Paris SaintGermain basketball shoe, which sells for $225 a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of A) selecting target market segments to reach. B) forming products to be sold into groups. C) developing a market-product grid and estimating size of markets. D) taking marketing actions to reach target markets. E) forming prospective buyers into segments.
Version 1
51
145) Jordan Lewis owns a company that makes Triangle BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Lewis has just A) formed a market segment using critical product features. B) formed products to be sold into groups. C) developed a market-product grid and estimating size of markets. D) taken a marketing action to reach a target market segment. E) formed prospective buyers into segments.
146) Which competitor mentioned in the text should the owner of a Wendy’s restaurant monitor closely due to its explosive growth in the number of current and proposed locations— one that is or may soon be near this Wendy’s? A) Burger King B) In-N-Out Burger C) McDonald’s D) Five Guys E) Smashburger
147) Wendy’s should consider the competitive potential of not only Burger King and McDonald’s, but also “fast-casual” establishments and even A) meals at golf and country clubs. B) dormitory meal plans at surrounding colleges and universities. C) items for sale at gas stations, coffee shops, and convenience stores. D) local farmer’s markets that sell produce. E) nearly every food item sold at local grocery stores.
Version 1
52
148)
In its early years, Apple was often called “Camp Runamok” because
A) every employee was encouraged to do his or her own thing. B) it was concentrating on laptops while everyone else was concentrating on personal computers. C) all the employees were so young, so they often played more than they worked. D) there were no coherent product lines targeted at identifiable market segments. E) its personal computers were running amok with viruses, spyware, and other problems.
149) In an Apple market-product grid for its personal computer line, the professional segment of medium/large businesses seems willing to purchase nearly all of the items in Apple’s product line. This allows Apple to enjoy cost savings due to A) segment differentiation. B) marketing synergies. C) product synergies. D) segment repositioning. E) product differentiation.
150) According to an analysis of an Apple market-product grid for its personal computer line, Apple would get thefewest product synergies from the A) most expensive products, Mac Pro and MacBook Pro. B) most versatile products, Mac Pro and iMac. C) products with the most complimentary market segments, iMac and MacBook Air. D) products with the fewest complimentary market segments, Mac Pro and Mac Mini. E) least frequently updated products, MacBook Air and Mac Mini.
Version 1
53
151) In an Apple market-product grid for its personal computer line, the iMac is popular among all the segments Apple can target. This product would allow Apple to enjoy A) segment differentiation. B) marketing synergies. C) product synergies. D) segment repositioning. E) product differentiation.
152)
Two key types of synergies related to segmentation and targeting are A) supplier and distributor synergies. B) marketing and product synergies. C) industry-dominated and consumer-dominated. D) product and production synergies. E) consumer and market synergies.
153)
Marketing synergies often come at the expense of product synergies because
A) product synergies are more effective for penetrating a market rather than creating one. B) multiple market segments usually require multiple products. C) it is easier to change a product than to completely develop a new marketing plan. D) a single customer segment will likely require a variety of products, each of which must be designed and manufactured. E) no company can afford to do both at the same time.
154) The place a product occupies in consumers’ minds on important attributes relative to competitive products is referred to as
Version 1
54
A) product repositioning. B) relative positioning. C) competitive positioning. D) product positioning. E) selective perception.
155)
Product positioning is
A) an outdated concept that assigns product value by association with social class. B) the place a product offering occupies in consumers’ minds on important attributes. C) the competitive advantage of one product over another. D) changing the place a product occupies in the retail environment. E) market-product grid with products in their appropriate places used to identify potential untapped markets.
156) Changing the place an offering occupies in a consumer’s mind relative to competitive products is referred to as A) product placement. B) perceptual mapping. C) product positioning. D) product repositioning. E) product differentiation.
157)
Product repositioning is
Version 1
55
A) the place a product offering occupies in consumers’ minds on important attributes. B) using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets. C) changing the place an offering occupies in a consumer’s mind relative to competitive products. D) the practice of selling a firm’s least successful product line and redirecting that revenue into a totally new product. E) the competitive advantage of one product over another.
158) U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. The dairies wanted to________Blank chocolate milk in the minds of adult consumers. A) segment B) differentiate C) explain D) promote E) reposition
159) Carmaker Kia has used its 10-year/100,000 mile warranty program to improve consumer perceptions of the reliability of its vehicles. This would be considered a________Blank strategy. A) product repositioning B) perceptual mapping C) product positioning D) product differentiation E) psychographic
160) One approach to positioning a product is________Blank positioning, which involves competing directly with competitors on similar product attributes in the same target market.
Version 1
56
A) perceptual B) head-to-head C) psychological D) differentiation E) market
161)
Head-to-head positioning requires a product to compete A) with products from competitors of the same size and country of origin. B) with competitors on similar product attributes but in a different market. C) with competitors on similar product attributes in the same market. D) against very similar products from its own company. E) against a single competitor with an identical offering.
162) In the athletic shoe market, Adidas AG and Nike, Inc. practice________Blank positioning since both companies vie for the same customers with technologically advanced products. A) psychological B) perceptual C) differentiation D) head-to-head E) market
163) A positioning approach that involves seeking a less-competitive, smaller market niche in which to locate a brand is referred to as
Version 1
57
A) competitive repositioning. B) head-to-head positioning. C) differentiation positioning. D) downsize positioning. E) product repositioning.
164)
Differentiation positioning requires a product to
A) emphasize unique product attributes to compete directly with competitors. B) compete directly with competitors on similar product attributes in the same target market. C) compete with competitors on similar product attributes but in a different market. D) seek a less-competitive, smaller market niche in which to locate a brand. E) develop marketing actions to move a product or brand to an ideal position.
165) In the sneaker business, Heelys practiced________Blank positioning when it introduced a line of Heelys sneakers that came with an imbedded, detachable wheel in the shoe’s heel marketed to young teens. A) head-to-head B) parallel market C) reflexive D) repositioning E) differentiation
166) While many energy drinks target teen and young adult males with extreme sports themes, 5-hour Energy frequently advertises toward adults needing a quick and easy way to get through a busy workday. The strategy for 5-hour Energy would be described as________Blank positioning.
Version 1
58
A) alternate B) head-to-head C) lateral D) niche E) differentiation
167) Some Timex wristwatches can be purchased for less than $30 while Rolex wristwatches may carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive timepieces that can be purchased in drugstores, discount stores, and department stores. The Rolex brand is perceived as an expensive status symbol distributed in fine jewelry stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Rolex watches A) compete for the same segment through different channels of distribution. B) develop similar products as Timex but under different names. C) use a differentiation positioning strategy. D) compete for the same customers through similar retail outlets. E) create cognitive dissonance in consumers who purchased Timex wristwatches.
168)
All of these are included in an ideal positioning statementexcept which? A) the product category in which the offering competes B) the needs satisfied by the product C) the offering’s unique benefits or attributes D) the anticipated or actual retail price of the product E) an identification of the target market
169)
Which of these is included in an ideal positioning statement?
Version 1
59
A) the retail location for distribution B) the competitors with similar offerings C) the promotional efforts used to persuade potential buyers D) the anticipated or actual retail price of the product E) an identification of the target market
170) “For upscale American families who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost in safety and dependability” is a________Blank statement for Volvo in North America. A) perception B) positioning C) market-product D) vision E) differentiation
171) “For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books as well as a combination of extraordinary convenience and low prices” is a________Blank statement for Amazon. A) perception B) positioning C) market-product D) vision E) differentiation
172) A means of displaying in two dimensions the location of its own and competing products or brands in the minds of consumers is a(n)
Version 1
60
A) awareness matrix. B) growth-share matrix. C) market-product grid. D) perceptual map. E) product differentiation chart.
173)
A perceptual map is
A) a framework used to compare one firm’s product offerings with another firm’s offerings in relationship to their relative market share. B) a framework used to demonstrate the growth or decline of specific market segments within an industry. C) a means of displaying in two dimensions the location of its own and competing products or brands in the minds of consumers. D) a framework to relate the market segments of potential buyers to the products offered or potential marketing actions by an organization. E) the place a product occupies in a single consumer’s mind on unimportant attributes relative to competitive products.
174) Marketers use perceptual maps as a means to display in two dimensions the location of products or brands A) against large market segments in a market-product grid. B) against small market segments in a market-product grid. C) in virtual space that represents the business or product’s time in existence and growth. D) in the minds of consumers. E) against the revenues generated by other products or brands within the company.
175) A perceptual map enables a manager to see how________Blank perceive competing products or brands, as well as the firm’s own product or brand.
Version 1
61
A) stakeholders B) competitors C) independent rating organizations such as Consumer Reports D) consumers E) nonusers
176)
The axes on a perceptual map are
A) sales and profitability. B) two important product attributes, ranging from high to low on that attribute. C) market share and market growth rate. D) product variety and profitability. E) customer perceptions of the firm’s product versus the brand of the firm’s principal competitor.
177)
Which of these is collected from consumers to develop a product’s perceptual map? A) consumer judgments about the important attributes for a product or brand class B) a listing of all prospective brands and products C) managerial judgments about how consumers perceive products D) rank order of the ratings of an existing brand’s preference relative to its competitors E) detailed explanations of why consumers make the choices they do
178) To effectively position a product or brand, companies take four steps, including which of these?
Version 1
62
A) decide whether to keep or delete the market segment that your product offering targets B) identify the key differentiators for competitors’ brands C) discover how target customers rate a company’s product or brand on important attributes D) create a marketing plan based on customers’ perceptions E) identify market niches that were not selected during the market segmentation process
179)
Figure 9-9 is a depiction of a ________Blank for beverages in the minds of adults.
Version 1
63
A) hierarchy of needs B) perceptual map C) marketing matrix D) growth-share matrix E) acuity matrix
180) The perceptual map in Figure 9-9 shows adult perceptions for beverages. Suppose a marketer is introducing a new beverage that is higher-than-average in nutrition and is intended for adults. It will probably be most useful to promote the drink as similar to what?
Version 1
64
A) tea B) fruit-flavored drinks C) sugared soft drinks D) regular milk E) coffee
181) Assume that the perceptual map in Figure 9-9 is an accurate representation for adult consumers. A heavy consumer of mineral water is likely to think that mineral water is
Version 1
65
A) more nutritious than tea. B) more nutritious and a more adult-oriented beverage than milk shakes. C) a more adult-oriented beverage than nutritionally designed diet drinks. D) less nutritious and a more adult-oriented beverage than fruit-flavored drinks. E) a more adult-oriented beverage than sports drinks.
182) By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called A) product differentiation. B) product innovation. C) market delineation. D) market segmentation. E) product groupings.
183) The O3 technology refers to an innovative tennis racquet Prince Sports developed that simultaneously delivers faster racquet speed and a bigger sweet spot in the middle of the frame. Prince Sports has implemented a________Blank strategy with its O3 innovative tennis racquet technology. A) competitive segmentation B) head-to-head C) product differentiation D) usage segmentation E) market segmentation
184)
The segmentation strategy used by Prince Sports today is
Version 1
66
A) geographic. B) behavioral. C) psychographic. D) socioeconomic. E) resource-based.
185)
What is market segmentation and why is it important?
186) What is product differentiation? How does it relate to market segmentation? How does it potentially improve a firm’s revenues?
187)
Describe the market segmentation process.
188) Why would an organization produce a single product or service and then attempt to sell it to two or more market segments?
Version 1
67
189) Why would an organization produce multiple products or services and then attempt to sell them to two or more market segments?
190)
Define mass customization and build-to-order.
191) There are five key steps in segmenting and targeting markets, which link market needs of customers to the organization’s marketing program. List these five key steps.
192) A marketing manager should develop segments for a market that meet five principal criteria. List these important factors in forming market segments.
193) A nonprofit food bank was handing out food to anyone who requested it on a weekly basis. It now wants to give free food only to people who go hungry on a daily basis. This will be the market segment it targets. How does the formation of its market segments differ from the strategy used for a retail store? Version 1
68
194)
Describe the four general bases that are used to segment consumer markets.
195) Assume you are manager of Outback Steakhouse, a franchised restaurant that has opened at new location in St. Louis. Describe which segmentation base(s) and possible segmentation variable(s) you would use to segment its market, and explain why each supports the appropriate market segmentation strategy.
196)
Explain the 80/20 rule.
197)
What are the segmentation bases for U.S. organizational (business) markets?
198)
Explain what a market-product grid is and how it is used.
Version 1
69
199)
What are the criteria used to select target markets?
200)
Explain the difference between marketing synergies and product synergies.
201) Define product positioning. What are two approaches to product positioning? Give an example of each approach.
202)
What are the three types of data needed from consumers to develop a perceptual map?
203)
What are the four steps to positioning a product with a perceptual map?
Version 1
70
Version 1
71
Answer Key Test name: Chap 09_16e_Kerin 1) B 2) A 3) A 4) B 5) E 6) C 7) C 8) C 9) D 10) B 11) C 12) D 13) A 14) A 15) E 16) D 17) C 18) A 19) A 20) B 21) A 22) D 23) A 24) B 25) C 26) D Version 1
72
27) A 28) C 29) C 30) C 31) B 32) D 33) A 34) D 35) A 36) B 37) C 38) E 39) C 40) B 41) C 42) D 43) E 44) B 45) A 46) B 47) B 48) B 49) D 50) C 51) C 52) A 53) B 54) D 55) B 56) A Version 1
73
57) E 58) A 59) B 60) C 61) D 62) B 63) E 64) D 65) A 66) A 67) D 68) C 69) C 70) E 71) B 72) C 73) E 74) D 75) C 76) B 77) E 78) D 79) D 80) B 81) A 82) D 83) C 84) A 85) D 86) B Version 1
74
87) C 88) B 89) A 90) B 91) C 92) A 93) D 94) C 95) D 96) A 97) D 98) D 99) B 100) E 101) D 102) E 103) D 104) C 105) D 106) C 107) A 108) C 109) A 110) E 111) B 112) D 113) C 114) E 115) B 116) D Version 1
75
117) B 118) B 119) C 120) C 121) D 122) A 123) C 124) B 125) A 126) C 127) D 128) C 129) C 130) D 131) E 132) B 133) B 134) C 135) D 136) D 137) B 138) B 139) C 140) D 141) D 142) E 143) C 144) A 145) D 146) D Version 1
76
147) C 148) D 149) B 150) D 151) C 152) B 153) D 154) D 155) B 156) D 157) C 158) E 159) A 160) B 161) C 162) D 163) C 164) D 165) E 166) E 167) C 168) D 169) E 170) B 171) B 172) D 173) C 174) D 175) D 176) B Version 1
77
177) A 178) C 179) B 180) A 181) E 182) D 183) C 184) B
Version 1
78
CHAPTER 10 1) As Apple’s CEO, the late Steve Jobs orchestrated innovations that revolutionized all of these industriesexcept which? A) music B) smartphones C) digital publishing D) cable television E) tablet computing
2) The Macintosh, iPod, iPhone, iPad, AirPods and AirTags are all examples of Apple’s commitment to A) sustainable procurement. B) social responsibility. C) new product development. D) using renewable resources. E) respecting its workforce.
3) The Apple innovation that leading car manufacturers are incorporating into their offerings that allows users to make calls, listen to music, and access messages by voice or touch while driving is referred to as A) iPod. B) iCloud. C) iCar. D) iPad. E) CarPlay.
Version 1
1
4) All of these are considered to be new-product development failures or stumbles by Appleexcept which? A) Apple Newton B) Apple Lisa C) “hockey puck” mouse D) Macintosh Portable E) CarPlay
5)
Which of these is expected to be the next chapter for Apple’s product development? A) Apple Fridge B) iCar C) AirToothbrush D) iFlashlight E) Apple Surfboard
6)
A product is
A) a tangible good received in exchange for a person’s time and effort. B) intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value. C) a good that has in some way been altered, combined, or improved and sold to organizational buyers. D) a thought that leads to an action such as a concept for a new invention. E) a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.
7) A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value is
Version 1
2
A) a utility bundle. B) a product. C) an exchange. D) an artifact. E) merchandise.
8) A product is a good, service, or idea consisting of a(n)________Blank that satisfy consumers’ needs and is received in exchange for money or something else of value. A) promise or commitment exchanged between a seller and a buyer B) bundle of tangible and intangible attributes C) assortment of value-possessing activities D) array of physical attributes E) collection of tangible qualities
9) As a marketing term,________Blank generally includes not only physical goods, but also services and ideas. A) deliverable B) invention C) merchandise D) product E) concept
10) A good, as opposed to a service or an idea, has tangible attributes that a consumer’s________Blank can perceive.
Version 1
3
A) cognitive intelligence B) vision C) long-term memory D) five senses E) emotional intelligence
11) A product that has tangible attributes that a consumer’s five senses can perceive is referred to as a(n) A) good. B) service. C) product concept. D) idea. E) artifact.
12)
Goods can be divided into________Blank goods and________Blank goods. A) functional; aesthetic B) necessary; desired C) tactile; conceptual D) durable; nondurable E) product; service
13)
Which statement regarding goods is most accurate?
Version 1
4
A) In order to be classified as a good, an item must appeal to all five senses. B) Music is not considered a good because it only involves a single sense—hearing. C) Some goods, though defined by their tangible attributes, also have intangible ones. D) To market a good that contains visual attributes, you cannot use an auditory medium. E) The aroma of chocolate chip cookies is considered an idea because it affects one’s senses.
14)
The division of products into durable and nondurable goods helps to A) comply with NAICS guidelines. B) address environmental concerns. C) comply with ISO 9000 requirements. D) classify products for tax purposes. E) provide direction for marketing actions.
15)
Which statement regarding goods is most accurate?
A) Nondurable goods rely more on advertising than durable goods. B) Durable goods benefit more from advertising than nondurable goods. C) There is little, if any, difference between marketing actions for durable and nondurable goods. D) Nondurable goods rely more on personal selling than durable goods. E) The durable and nondurable classification applies to services as well as to goods.
16)
A________Blank is defined as an item consumed in one or a few uses.
Version 1
5
A) durable good B) convenience good C) specialty good D) shopping good E) nondurable good
17)
A nondurable good is a(n) A) item consumed in one or a few uses. B) item that usually lasts over an extended number of uses. C) item that lasts at least one year without becoming obsolete. D) product purchased only for the use of ultimate consumers. E) product used in the production of other products.
18)
Food products and fuel would be classified as A) services. B) perishable goods. C) durable goods. D) nondurable goods. E) disposable goods.
19)
Among consumer products, advertising is especially important for A) durable goods. B) specialty products. C) nondurable goods. D) production goods. E) undifferentiated goods.
Version 1
6
20)
Which of these is the best example of a nondurable good? A) lawn fertilizer B) skateboard C) insurance D) smartphone E) museum visit
21)
Which of these is the best example of a nondurable good? A) blender B) gaming console C) coat D) toilet paper E) bed frame
22)
Personal selling isleast important for which of these products? A) headphones B) coffeemaker C) body wash D) hammock E) fine jewelry
23)
A durable good is a(n)
Version 1
7
A) item consumed in one or a few uses. B) item that usually lasts over many uses. C) item that lasts at least one year without becoming obsolete. D) product purchased only for the use of ultimate consumers. E) product used in the production of other products.
24)
Products that usually last over many uses, such as cars and appliances, are referred to as A) endurable goods. B) nondisposable goods. C) imperishable goods. D) reliable products. E) durable goods.
25)
Appliances and smartphones are classified as A) reusable goods. B) nondisposable goods. C) imperishable goods. D) reliable products. E) durable goods.
26) mix?
Marketers of durable goods should emphasize which of these elements of the promotional
Version 1
8
A) sales promotion B) personal selling C) advertising D) public relations E) direct marketing
27)
Which of these is considered a durable good? A) throw blanket B) scone C) movie tickets D) hand sanitizer E) legal work
28) Intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value are A) services. B) goods. C) products. D) marketing mix. E) ideas.
29)
Services are
Version 1
9
A) philanthropic activities performed without expectations of monetary remuneration. B) the activities provided to complement a tangible good, such as technical support for a computer. C) the intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value. D) any activity required for the production of a good that cannot be completed “in-house” and must be outsourced to another firm. E) the human (nonmechanical) component that is part of the manufacturing process.
30) Intangible items such as music festivals, legal advice, or public transportation that an organization provides to consumers are referred to as A) production goods. B) support products. C) services. D) goods. E) benefits.
31)
Which of these is considered a service? A) a presidential candidate B) a desk C) a taco D) an airline E) environmentalism
32)
Which of these is considered a service?
Version 1
10
A) hotel stay B) trash bags C) silverware D) washing machine E) freedom
33)
Which statement about services is most accurate?
A) Services are classified as durable and nondurable. B) The marketing of services is, in a practical sense, identical to the marketing of products or ideas since they both satisfy customer needs. C) Only 10 percent of all jobs created in the United States are in the services sector. D) Services are sometimes necessary to augment goods. E) Services are among the easiest products to market because of their tangible nature.
34)
In marketing, an idea is a(n) A) thought that leads to a product or action. B) inspiration that evolved from market research. C) observation about a series of events. D) concept explaining the behavior of an individual or group. E) observation about an individual or group and how they use a service or product.
35)
In marketing, a(n)________Blank is a thought that leads to a product or action.
Version 1
11
A) observation B) inspiration C) experiment D) idea E) perception
36)
Which of these is considered an idea? A) outdoor furniture B) pet food C) orthodontia D) a marketing class E) food security
37)
Consumer products are A) products used in the production of other items. B) products purchased by the ultimate consumer. C) products an industrial buyer will make an effort to seek out and buy. D) items purchased frequently and with a minimum of shopping effort. E) products that assist directly or indirectly in providing products for resale.
38)
Products that are purchased by the ultimate consumer are A) generic products. B) end user goods. C) personal items. D) merchandise. E) consumer products.
Version 1
12
39)
Which of these would most likely be considered a consumer product? A) auto lift B) cotton fiber C) printing press D) suitcase E) massage table
40)
Products organizations buy that assist in providing other products for resale are A) reseller goods. B) wholesale goods. C) business products. D) ancillary products. E) retail products.
41)
Business products are A) products organizations buy that assist in providing other products for resale. B) supplies necessary for the day-to-day operations of a business. C) ancillary services necessary for the operation of a business. D) products that are sold exclusively to for-profit businesses. E) products purchased by the ultimate consumer.
42)
Business products are also referred to as
Version 1
13
A) B2B products. B) B2C products. C) B4B products. D) BOB products. E) B4C products.
43)
Business products are also called A) commodities. B) industrial products. C) wares. D) resale products. E) merchandise.
44) An iMac personal computer from Apple can be considered part of all of these categoriesexcept which? A) business product B) nondurable good C) B2B product D) durable good E) consumer product
45) Consumer products are classified into four categories based on the attributes used in making the purchase decision, the frequency of purchase, and the
Version 1
14
A) amount of money the customer is willing and able to spend. B) number of competing or substitute products. C) demographics of the consumer. D) effort the consumer spends on the decision. E) consumer segmentation characteristics.
46)
Convenience products are
A) items that consumers will make special efforts to seek out and buy. B) items for which consumers compare several alternatives on criteria such as price, quality, or style. C) products consumers purchase frequently and with a minimum of shopping effort. D) ancillary products used to make other products work more efficiently. E) low-cost items for which there are numerous substitutes and generic equivalents.
47)
Which type of consumer product is relatively inexpensive? A) shopping product B) convenience product C) specialty product D) unsought product E) supplies
48)
With respect to distribution, convenience products are available
Version 1
15
A) at relatively few outlets. B) at a large number of specialty outlets. C) only online from the manufacturer. D) only at convenience stores. E) on a widespread basis at many outlets.
49)
The promotion for which product type would stress price, availability, and awareness? A) shopping B) convenience C) specialty D) unsought E) supply
50)
Which of these is the best example of a convenience product? A) Apple AirPods B) Audi Q8 luxury automobile C) flight on United Airlines D) Roget’s Thesaurus E) Lay’s Potato Chips
51) Items for which the consumer compares several alternatives on several criteria such as price, quality, or style are________Blank products.
Version 1
16
A) specialty B) selective C) shopping D) prestige E) convenience
52)
For shopping products, the consumer
A) purchases the items frequently, conveniently, and with a minimum of effort. B) compares several alternatives on criteria such as price, quality, or style. C) makes a special effort to search out the items and buy them. D) does not know about the items or knows about them but does not initially buy them. E) buys the items as a result of buying other consumer products, such as impulse purchases.
53) Which type of consumer product is purchased relatively infrequently and the purchase decision takes some time because the consumer compares offerings during the shopping experience? A) convenience product B) shopping product C) specialty product D) unsought product E) discretionary product
54)
With respect to distribution, shopping products are available
Version 1
17
A) by special order from the manufacturer only. B) at an extremely small number of outlets. C) at relatively few outlets. D) at a large number of selective outlets. E) on a widespread basis at many outlets.
55)
With respect to price and availability, shopping products are likely to be A) relatively inexpensive and widely available. B) relatively inexpensive but very limited availability. C) very expensive and available at a large number of selective outlets. D) very expensive with very limited availability. E) fairly expensive and available at a large number of selective outlets.
56) In terms of promotion, which consumer product type stresses product differentiation from competitors but not status? A) shopping product B) convenience product C) specialty product D) unsought product E) discretionary product
57) In terms of brand loyalty, consumers prefer specific brands but will accept substitutes for which type of consumer product?
Version 1
18
A) shopping product B) convenience product C) specialty product D) unsought product E) discretionary product
58) You decide to buy a new car. You talk to friends about it, research mechanical specifications inConsumer Reports, test-drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall? A) specialty product B) unsought product C) discretionary product D) shopping product E) convenience product
59)
Specialty products are
A) products for which there are many substitutes. B) products purchased for their prestige or high perceived value. C) products a consumer will make a specific effort to search out and buy. D) items for which the consumer compares several alternatives on several criteria such as price, quality, or style. E) items that the consumer does not know about or knows about but does not initially buy.
60) Which type of consumer product is often very expensive, purchased infrequently, and takes an extensive amount of purchase decision time?
Version 1
19
A) convenience product B) shopping product C) specialty product D) unsought product E) discretionary product
61) With respect to price and availability, which consumer product type would usually be very expensive and available in just a few locations? A) convenience product B) shopping product C) discretionary product D) specialty product E) unsought product
62) Distribution is very limited and brand status is stressed in promoting which consumer product type? A) shopping product B) convenience product C) discretionary product D) prepurchase product E) specialty product
63) In terms of promotion, which consumer product type stresses status and brand uniqueness?
Version 1
20
A) specialty product B) convenience product C) shopping product D) unsought product E) discretionary product
64) Consumers are very brand loyal and will not accept substitutes for which type of consumer product? A) shopping product B) convenience product C) specialty product D) unsought product E) discretionary product
65) You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would the Waterford crystal serving bowls fall? A) convenience products B) shopping products C) unsought products D) specialty products E) discretionary products
66) Burberry makes fine raincoats, clothing, and other items, many that feature the company’s distinctive plaid. Originally found only in Great Britain, Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality. Burberry is selling which classification of consumer product?
Version 1
21
A) convenience product B) shopping product C) discretionary product D) unsought product E) specialty product
67)
Unsought products are
A) any products associated with impulse buys at the supermarket checkout counter. B) products that were once very popular but that have become obsolete because they are in the decline stage of their product life cycle. C) items within a company’s product line that do not perform as well as others in the line. D) products that the consumer does not know about or knows about but does not initially want. E) products that people choose to ignore because they find them offensive from a moral or ethical perspective.
68)
Which of these is most likely to be an unsought product? A) snow shovel B) smartphone C) gym membership D) bracelet E) burial insurance
69) Very infrequent purchases and limited distribution are characteristic of products that a prospective buyer may not initially want, which makes awareness essential. This type of consumer product is
Version 1
22
A) an unsought product. B) a shopping product. C) a convenience product. D) a specialty product. E) a support product.
70)
With respect to promotion, which strategy would be essential for unsought products? A) offering consumer and trade sales promotions B) establishing the uniqueness and status of the brand C) generating awareness D) differentiating the brand from competitive brands E) stressing price and availability in advertising
71)
Which of these is most likely to be an unsought product? A) Swagtron hoverboard B) 5-hour Energy shot C) flight on American Airlines to Phoenix D) Roget’s Thesaurus E) Ivory soap
72) A newly invented apple peeling and coring machine for the consumer market would be considered a(n)
Version 1
23
A) shopping product. B) convenience product. C) specialty product. D) unsought product. E) discretionary product.
73) Fifty percent or more of American adults have not had their teeth checked by a dentist within the past five years. For these people, dental services would most likely be classified as a(n) A) shopping product. B) convenience product. C) specialty product. D) unsought product. E) business product.
74)
According to Figure 10-1, column A would represent which type of product?
Version 1
24
A) shopping products B) convenience products C) specialty products D) prestige products E) unsought products
75)
According to Figure 10-1, column B would represent which type of product?
A) shopping products B) convenience products C) specialty products D) prestige products E) unsought products
Version 1
25
76)
According to Figure 10-1, column C would represent which type of product?
A) shopping products B) convenience products C) specialty products D) prestige products E) unsought products
Version 1
26
77)
According to Figure 10-1, column D would represent which type of product?
A) shopping products B) convenience products C) specialty products D) prestige products E) unsought products
78) Considering the classification of consumer products, which product will have the most limited distribution? A) Secret antiperspirant B) Fuji disposable camera C) BP gasoline D) Marchesa wedding gown E) Sony HDTV
Version 1
27
79) Vivienne, a college student with limited financial resources, was considering the purchase of a new laptop. She visited several office supply and consumer electronics stores, searching for the lowest price on a reliable new laptop. She devoted a great deal of time and energy to getting the best value for her money. For Vivienne, a laptop was a(n) A) specialty product. B) unsought product. C) discretionary product. D) shopping product. E) convenience product.
80) The demand for a business product that results from the demand for a consumer product is referred to as________Blank demand. A) sequential B) selective C) primary D) secondary E) derived
81)
Which of these best illustrates the concept of derived demand?
A) The number of retail stores in a downtown area decreases even though demand for retail goods increases. B) An increase in the number of new, single-family homes results from a spike in the gross national product. C) A Chinese plastics company decreases its output because of its customers’ reduction in toy exports to the United States. D) A heat wave results in an increased demand for air conditioners. E) Honda reducing its car prices causes GM to do the same.
Version 1
28
82) Heavy-duty Rayovac flashlights are sold to consumers throughout the United States. Philips manufactures the bulbs used in Rayovac flashlights. The quantity of bulbs Philips makes is related to how many flashlights Rayovac sells. This is an example of A) a tying arrangement. B) reciprocity. C) strategic alliance demand. D) relationship marketing. E) derived demand.
83)
The two main classifications of business products are A) durable and nondurable products. B) components and support products. C) tangible and intangible products. D) consumer and industrial products. E) derived and maintenance products.
84)
________Blank are items that become part of the final business product. A) Components B) Accessories C) Support products D) Production goods E) Raw assemblies
85)
Raw materials, such as grain or lumber, as well as assemblies or parts are referred to as
Version 1
29
A) production goods. B) components. C) accessories. D) support products. E) raw assemblies.
86) Installations, accessory equipment, supplies, and industrial services used to assist in producing other products and services are A) components. B) parts. C) production goods. D) raw materials. E) support products.
87) Products such as tools and repair services that are used to assist in producing other products and services are A) components. B) complementary products. C) support products. D) derived products. E) materials.
88)
Which of these is a type of business product known as a support product?
Version 1
30
A) accessory equipment B) components C) materials D) derived products E) complementary products
89)
Among business products, support products include installations such as A) convenience products. B) buildings and fixed equipment. C) tools and office equipment. D) raw materials and component parts. E) maintenance, repair, and legal services.
90)
Installations are support products that include items such as A) copy paper, mechanical pencils, and lightbulbs. B) welding masks and computers. C) warehouses and automated assembly lines. D) lumber and engine parts. E) janitorial and legal services.
91) An extremely large machine for producing sheet metal from steel ingots would be classified as which kind of business product?
Version 1
31
A) installations B) finished goods C) supplies D) industrial services E) raw materials
92)
Accessory equipment is a type of support product that includes items such as A) stationery, paper clips, and brooms. B) tools and office equipment. C) buildings and fixed equipment. D) raw materials and component parts. E) maintenance, repair, and legal services.
93)
Among business products, support products such as tools and office equipment are A) installations. B) supplies. C) raw materials. D) accessory equipment. E) components.
94) Among business products, which of these would most likely be considered accessory equipment?
Version 1
32
A) copper wiring B) a factory C) a cleaning service D) pneumatic nail gun E) ink-jet printer cartridges
95) Among business products, copiers would be best considered which type of support product? A) installations B) accessory equipment C) supplies D) industrial services E) raw materials
96)
Supplies are support products that include items such as A) stationery, paper clips, and brooms. B) tools and office equipment. C) buildings and fixed equipment. D) raw materials and component parts. E) maintenance, repair, and legal services.
97)
Among business products, supplies usually consist of
Version 1
33
A) buildings and fixed equipment. B) items used in the manufacturing process that become part of the final product. C) tools and office equipment. D) items such as pens, batteries, and lightbulbs. E) raw materials and component parts.
98) Among business products, printer paper would be classified as which type of support product? A) installations B) accessory equipment C) supplies D) industrial services E) raw materials
99)
Among business products, which of these would most likely be considered supplies? A) laser printer B) phosphoric acid C) cleaning service D) magnetic resonance imaging (MRI) scanner E) trash bags
100)
Industrial services are support products that include items such as
Version 1
34
A) stationery, paper clips, and brooms. B) tools and office equipment. C) buildings and fixed equipment. D) raw materials and component parts. E) maintenance, repair, and legal services.
101) Among business products, which of these would most likely be considered an industrial service? A) tractor B) glass cleaner C) photocopier maintenance D) athletic training facility E) syringes
102) When a small retail store hires an accountant to do its income taxes, the retail store has purchased a(n) A) ancillary service. B) industrial service. C) specialty service. D) accessory service. E) contractual service.
103) Legal counsel advising a firm’s R&D department on a patent application would most likely be classified as which type of support product?
Version 1
35
A) ancillary services B) contractual services C) specialty services D) accessory services E) industrial services
104) A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others for customer-requested items. The retail chain purchased which kind of business products? A) accessory equipment B) industrial services C) supply materials D) component parts E) installations
105)
Services can be classified by A) their method of delivery. B) their use of idle capacity time. C) the nature of their ownership. D) their location on perceptual maps. E) their organizational reach.
106)
Services can be classified according to whether they are
Version 1
36
A) national or global. B) independent contractors. C) privately owned or publicly owned. D) delivered by people or equipment. E) owned by individuals or corporations.
107)
Services can be classified according to whether they are A) national or global. B) use independent contractors. C) privately owned or publicly owned. D) owned by individuals or corporations. E) business firms, nonprofit organizations, or government agencies.
108)
A product class is
A) the NAICS designation of an individual product or brand. B) the designation of an individual product based upon its form. C) a variation of a product within a product mix. D) the designation of a product based on whether it is a consumer product or business product. E) the industry to which a set of offerings belongs.
109)
Variations of a product (shape, configuration) within a product class are referred to as the
Version 1
37
A) product form. B) product item. C) product line. D) product class. E) product mix.
110)
A product item refers to A) the variations within a product class. B) the entire product category or industry. C) a group of SKUs that are closely related. D) a specific product that has a unique brand, size, or price. E) the services offered by an organization.
111) The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give as a gift on Valentine’s Day. The Love Bandit Bear is an example of a A) product item. B) product mix. C) product class. D) product form. E) product line.
112) A(n)________Blank is the unique identification number that defines an item for ordering or inventory purposes.
Version 1
38
A) unique stock mark B) QR code C) stock keeping unit D) order quantity code E) NAICS inventory code
113) The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give on Valentine’s Day. The unique identification number that the Vermont Teddy Bear Co. uses to distinguish this teddy bear from the others in order to track it in the warehouse is called a(n) A) inventory ID code. B) QR code. C) NAICS stock code. D) order quantity code. E) stock keeping unit.
114) A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range is referred to as a A) product class. B) product mix. C) product category. D) marketing category. E) product line.
115)
A product line refers to
Version 1
39
A) a product and all its ancillary services (warranties, financing, etc.). B) the variations within a product class. C) a specific product SKU that has a unique brand, size, or price. D) a group of product or service items that are closely related in terms of needs satisfied, uses, customer group, outlets, or price range. E) the entire product category or industry.
116)
Which of these is a way that a product line might be defined? A) Products are made of similar materials. B) Products are distributed through the same type of outlets. C) Products were new at the same time. D) Products are identical except for price. E) Products require high levels of R&D.
117)
Which statement about product lines is most accurate?
A) An advantage of a narrow product line is the ability to have a greater gap between price points. B) Product lines refer to consumer products; product mixes refer to industrial products. C) An advantage of broad product lines is increased likelihood of access to large retail chain distribution. D) A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions. E) A broad product line reduces R&D costs.
118)
Which of these is an example of a product line?
Version 1
40
A) Listerine Total Care Anticavity mouthwash B) Zephyrhills natural spring water in eight-ounce bottles C) The Yellow Pages for Gainesville, Florida D) Alex and Ani bracelets E) Samsung Galaxy S21 smartphone
119) During a recent shopping trip to Target, Carlie noticed that the store offered many Glad products, including many different types of trash bags and a large variety of food storage containers. For Glad, each of these two product groupings is an example of a A) product line. B) product item. C) product mix D) product industry. E) product class.
120) a
All of the different product lines offered by an organization are collectively referred to as
A) product class. B) product mix. C) product SKU. D) marketing mix. E) target mix.
121)
A product mix refers to
Version 1
41
A) all of the different product lines offered by an organization. B) the variations within a product class. C) a specific product SKU that has a unique brand, size, or price. D) a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range. E) the entire product category or industry.
122) Procter & Gamble has a large________Blank that includes product groupings such as beauty and grooming (Crest toothpaste and Gillette razors) and household care (Downy fabric softener, Tide detergent, and Pampers diapers). A) marketing mix B) product class C) product itemization D) product line E) product mix
123) Newman’s Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauces, and salad dressings under the Newman’s Own brand name. These product lines comprise the company’s A) product mix. B) stock keeping units. C) product category. D) product class. E) marketing category.
124)
The relationship between a product line and product mix is
Version 1
42
A) product mixes include product lines. B) product lines include product mixes. C) product lines refer to consumer products; product mixes refer to business products. D) product mixes refer to consumer products; product lines refer to industrial products. E) there is no significant difference other than minor product variations of color, size, or form.
125)
Feature bloat is
A) an exaggeration of a product’s performance capabilities. B) the overcharging in price for a minor product enhancement. C) the requirement of having consumers learn new behaviors with a continuous innovation. D) the adding of product functions that do not benefit most consumers yet add costs. E) the increase in package size when adding more content or making a product larger (the mega phenomenon).
126) Adding additional features or functionality to a product that are not of any benefit to most consumers and unnecessarily add to its cost is referred to as A) function exaggeration. B) product line extension. C) feature bloat. D) sensory overload. E) product differentiation.
127) Research shows that while feature bloat can increase the capability of a new product and encourage a purchase,
Version 1
43
A) consumers are unable to articulate their reasons for purchase, which limits positive word of mouth. B) few brands take advantage of the opportunity to improve their offerings. C) there is typically such a large increase in price that few buyers respond. D) competitors typically respond so quickly that there is little impact on sales. E) the actual usage experience after purchase results in consumer dissatisfaction, or feature fatigue.
128)
A product can be classified as new from all of these perspectivesexcept which? A) the organization’s B) existing offerings C) legal D) the firm’s competitors E) the consumer’s
129)
A product can be classified as new if it________Blank from existing products. A) is functionally different B) is different in color, taste, or fragrance C) is different in its packaging D) is different in price E) requires a different distribution channel
130) An important way of defining new products is in terms of their effects on consumption. This approach classifies new products according to the
Version 1
44
A) price. B) extent of media promotion. C) degree of potential product cannibalization. D) presence of feature bloat. E) degree of learning required by the consumer.
131) A product that is new in some way but requires no new behaviors to be learned by consumers is a A) continuous innovation. B) discontinuous innovation. C) dynamically continuous innovation. D) product transformation. E) concurrent innovation.
132)
The emphasis of a marketing strategy for a continuous innovation concentrates on A) obtaining exclusive distribution. B) setting a low price. C) generating awareness. D) using reminder advertising to reeducate consumers. E) using personal selling.
133) At the time of its introduction, which product was the best example of a continuous innovation?
Version 1
45
A) home security system B) disposable lighter C) microwave oven D) electric toothbrush E) video camera
134) Wrigley’s new Alert Caffeine Gum “offers a portable solution that lets adults control their caffeine intake.” This new gum is most likely which type of innovation? A) continuous innovation B) dynamically continuous innovation C) discontinuous innovation D) insignificant innovation E) disruptive innovation
135) At the time of its introduction, which product was the best example of a continuous innovation? A) the first Apple iPhone B) Atari, the first video game system C) Sunsilk Silky Straight shampoo and conditioner with tip-targeting technology D) Dragon Naturally Speaking voice-recognition software E) Naturalpoint Trakir, which replaces the computer mouse by tracking head movements
136)
The addition of Clorox II bleach to Tide laundry detergents is an example of a
Version 1
46
A) discontinuous innovation. B) bundled innovation. C) dynamically continuous innovation. D) disruptive innovation. E) continuous innovation.
137) The first LCD (liquid crystal display) flat-panel HD (high-definition) TV was an example of which type of innovation? A) continuous innovation B) dynamically continuous innovation C) discontinuous innovation D) insignificant innovation E) disruptive innovation
138) A product that disrupts consumers’ normal routine but does not require totally new learning is a A) continuous innovation. B) dynamically continuous innovation. C) discontinuous innovation. D) progressive innovation. E) disruptive innovation.
139) The emphasis of a marketing strategy for a dynamically continuous innovation would include
Version 1
47
A) advertising to generate awareness. B) obtaining widespread distribution. C) advertising to explain points of difference and benefits. D) setting a low price. E) using personal selling.
140) It is common now for laptops and tablets to utilize multitouch functions, such as “pinch to zoom,” either on the screen interface or with the tracking mouse. When the multitouch interface was first introduced, it was an example of which type of innovation? A) continuous innovation B) discontinuous innovation C) disruptive innovation D) dynamically continuous innovation E) evolutionary innovation
141) Pasta sauces have always required the accompanying pasta to be precooked before it is mixed with the sauces and other ingredients. The development of Prego Pasta Bake Sauce that calls for uncooked pasta would be an example of a A) continuous innovation. B) discontinuous innovation. C) evolutionary innovation. D) disruptive innovation. E) dynamically continuous innovation.
142) Philips Sonicare recently introduced the DiamondClean rechargeable toothbrush. A key innovation is its Quadpacer interval timer that goes off after 30 seconds to prompt the user to move on to the next quadrant of the mouth, resulting in better cleaning and improved gum health. This is an example of which type of innovation?
Version 1
48
A) disruptive innovation B) continuous innovation C) discontinuous innovation D) dynamically continuous innovation E) evolutionary innovation
143) The new Samsung Family Hub Refrigerator has a 21.5-inch touchscreen, ingredienttracking fridge-cams, and an assortment of fridge apps. This is an example of which type of innovation? A) inventive innovation B) continuous innovation C) discontinuous innovation D) dynamically continuous innovation E) continuous invention
144) A product that requires the learning of entirely new consumption patterns among consumers is referred to as a(n) A) continuous innovation. B) discontinuous innovation. C) dynamically continuous innovation. D) evolutionary innovation. E) progressive innovation.
145)
A discontinuous innovation is a product that
Version 1
49
A) disrupts consumers’ normal routine but does not require totally new learning. B) requires no new learning by consumers. C) is not purchased by innovators and early adopters. D) initiates obsolescence of a product class. E) requires consumers to learn entirely new patterns of behavior and product usage.
146) be to
The emphasis of a marketing strategy for a discontinuous innovation would most likely
A) generate awareness among consumers. B) advertise benefits to consumers that stress points of differentiation. C) educate consumers about new consumption patterns through personal selling. D) obtain widespread distribution in multiple channels. E) stress price differentials from competitors’ products.
147) Which product at the time of its introduction was the best example of a discontinuous innovation? A) DVD player B) disposable lighters C) instant light charcoal D) liquid laundry detergent E) automatic dishwashers
148) In the early 1900s, your great-great-grandfather may have purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of a(n)
Version 1
50
A) continuous innovation. B) dynamically continuous innovation. C) disruptive improvement. D) discontinuous innovation. E) evolutionary innovation.
149) Dragon Naturally Speaking, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of a(n) A) continuous innovation. B) discontinuous innovation. C) dynamically continuous innovation. D) disruptive improvement. E) evolutionary innovation.
150)
According to Figure 10-2, column A represents a(n)
Version 1
51
A) spontaneous innovation. B) continuous innovation. C) discontinuous innovation. D) dynamically continuous innovation. E) evolutionary innovation.
151)
According to Figure 10-2, column B represents a(n)
A) continuous innovation. B) discontinuous innovation. C) disruptive innovation. D) dynamically continuous innovation. E) evolutionary innovation.
Version 1
52
152)
According to Figure 10-2, column C represents a
A) continuous innovation. B) discontinuous innovation. C) dynamically continuous innovation. D) spontaneous innovation. E) simultaneous innovation.
153) only
The Federal Trade Commission (FTC) advises that a product should be labeled asnew
A) for a period of one year after it enters widespread distribution. B) if it is functionally different from a competitor’s product. C) until an improved version of the same product is produced. D) for a period of six months after it enters regular distribution. E) for a period of 17 years at which time patent rights are returned to the public domain.
154) Prego introduced a Pasta Bake Sauce, which called for uncooked pasta blended with pasta, sauce, meat, and cheese in a casserole. Legally, this product should only be labeled as new
Version 1
53
A) for the first six months that it was regularly available at a variety of grocery stores. B) until a competitor such as Ragu had issued a similar product targeted to the same market. C) as long it retained these exact product characteristics. D) if it was functionally the same as its salsa sauce. E) until its advertising had been seen by every member of its target audience.
155) From an organization’s perspective regarding its new products and innovations, which new-product strategy has thelowest level of risk? A) a radical invention B) a brand extension C) a product line extension D) a jump in innovation E) a product diversification
156) From an organization’s perspective regarding its new products and innovations, which new-product strategy has thehighest level of risk? A) a radical invention B) a brand extension C) a product line extension D) a jump in innovation E) a product deletion
157) Mr. Clean is an antibacterial cleaning liquid for home use. If Procter & Gamble (P&G), the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G as
Version 1
54
A) a discontinuous innovation. B) a new product from the company’s perspective because it is a product line extension. C) a high-risk product mix extension because it is new to the market. D) new by the Federal Trade Commission for the usual one-year period. E) not a new product because it does not represent a different SKU.
158)
Which new product offers thelowest level of risk from the company’s point of view? A) adding Ball Park Beef Franks with Cheese to the Ball Park Franks line B) moving from production of landline telephones to smartphones C) marketing the first Apple computer D) changing the formula from Coca-Cola to New Coke and then back to Coca-Cola
Classic E) offering online marketing classes rebranded under a new college name
159) Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what toothpaste manufacturer Colgate did when it put its brand name on Colgate’s Kitchen Entrees, which failed quickly. This innovation strategy is an example of an unsuccessful A) brand extension. B) radical invention. C) product line extension. D) disruptive innovation. E) product diversification.
160) Battery maker Duracell introduced a new product called the Duracell Powermat, which is a wireless charging pad for mobile devices. Because of the perceived fit with its other products, this new product was received well by consumers despite being in a different product category. This innovation strategy is known as a
Version 1
55
A) brand extension. B) radical invention. C) product line extension. D) disruptive innovation. E) product accumulation.
161) Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, disposable pen, lighter, and razor maker Bic introduced perfume under the Bic brand name and it failed quickly. This innovation strategy is known as a A) radical invention. B) product line extension. C) disruptive innovation. D) product deletion. E) brand extension.
162)
A new-product or service protocol is
A) the standardized procedures a firm follows for the inception, design, manufacturing, promotion, and distribution of a new product. B) a formalized statement of intent regarding what will be sold, to whom it will be sold, and by whom it will be sold. C) maintaining compliance with all licensing, manufacturing, and distribution standards established by the U.S. Federal Trade Commission (FTC). D) a statement that identifies a well-defined target market, specific customers’ needs, wants, and preferences, and what the product or service will be and do to satisfy consumers. E) the raw unwritten ideas to produce a single commercially successful new product.
Version 1
56
163) Ideally, before a new product or service is developed, a firm should have a precise________Blank, which is a statement defining the target market, specifying customers’ needs, and defining what the product or service will be and do to satisfy consumers. A) formula B) contract C) modus operandi D) protocol E) methodology
164) New-product or service failures may be reduced or avoided if the company developing them has A) support from marketer-dominated sources of information. B) a clear patent approved by the governments within the countries it wants to market. C) a statement of competitive intent. D) stakeholder approval in the development process. E) a precise protocol.
165) Before a new product or service is developed, a firm should have a precise protocol, a statement that includes A) a clear plan for product distribution. B) an analysis of potential competitors’ products. C) an accurate budget for the marketing program. D) a well-defined target market. E) clear financial goals and expectations.
166) Less than________Blank of new consumer packaged goods (CPG) exceed first-year sales of $50 million—the benchmark of a successful CPG launch.
Version 1
57
A) 3 percent B) 10 percent C) 17 percent D) 28 percent E) 35 percent
167) When General Mills introduced Fingos, a corn chip–sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was A) an insignificant point of difference—consumers wouldn’t switch from competing snacks. B) too little market attractiveness—the growth in the snacks market is declining. C) poor execution of the marketing mix—General Mills did not offer free samples at grocery stores. D) poor product quality—the chips were not the same size. E) incomplete market and product protocol—the brand name Fingos did not get consumers excited.
168)
One of the eight primary marketing-related reasons for new-product failure is A) not listening to the voice of the engineer. B) bad timing. C) too much advertising or too aggressive a tone for it. D) failure to anticipate competitors’ actions. E) insufficient funding for rollout.
Version 1
58
169) Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. Unfortunately, people didn’t believe the claim and were frightened by the “cidal” in the brand name. The reason for this product failure was A) an insignificant point of difference. B) too little market attractiveness. C) poor execution of the marketing mix. D) poor product quality. E) incomplete market and product protocol.
170) Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. American car manufacturers could blame their failure to a great degree on A) an insignificant point of difference. B) too little market attractiveness. C) not satisfying customer needs on critical factors. D) poor product quality. E) incomplete market and product protocol.
171) Hewlett-Packard introduced its HP TouchPad tablet a few years after Apple launched its original iPad, about the same time Apple introduced its next-generation iPad 2. Hewlett-Packard abandoned its product within months. According to the text, the HP tablet’s failure was due in large part to A) bad timing. B) not satisfying customer needs on critical factors. C) poor product quality. D) an insignificant point of difference. E) incomplete market and product protocol.
Version 1
59
172)
One of the eight primary marketing-related reasons for new-product failure is A) not listening to the voice of the engineer. B) poor execution of the marketing mix. C) too much advertising or too aggressive a tone for it. D) failure to anticipate competitors’ actions. E) insufficient funding for rollout.
173) Thirsty Dog! is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for dogs. It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. The makers of this product had A) poor product quality. B) no economical access to buyers. C) an insignificant point of difference. D) incomplete market and product protocol. E) poor execution of the marketing mix.
174) After gaining widespread attention with the media, as well as popularity with teens, hoverboards made by a variety of manufacturers were found to catch fire or explode. Hoverboard sales suffered greatly as a result of which common reason for product failure? A) not satisfying customer needs on critical factors B) poor product quality C) poor execution of the marketing mix D) an insignificant point of difference E) bad timing
Version 1
60
175) OUT! International’s Hey! There’s A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid’s bedroom. Although a clever idea, it failed because it A) did not satisfy customer needs on critical factors. B) had poor product quality. C) had bad timing. D) had an incomplete market and product protocol. E) had too little market attractiveness.
176)
Groupthink occurs in a new-product planning process when
A) everyone has an opinion, but no one is willing to take charge and guide the discussion. B) everyone has the same idea after using the brainstorming idea-generation technique. C) there is too much competition among marketing managers, so no one is willing to share his or her ideas. D) someone suspects a problem with a product concept but is afraid to speak up because everyone else is so enthusiastic. E) top management wants the new product to go forward regardless of what anyone else thinks.
177) One of the two organization-related problems of inertia that can cause new-product failures is A) poor product quality. B) encountering the “not-invented-here” syndrome. C) poor execution of the marketing mix. D) bad timing. E) incomplete market and product protocol.
Version 1
61
178) ________Blank innovation is based on the conviction that new products and consumer solutions can successfully emerge only from inside the organization. A) Internal B) Closed C) Executive D) Reverse E) Market
179)
Open innovation consists of
A) a clear plan for new product distribution that will ensure access for all potential customers within the first year of release. B) a formal and comprehensive analysis of competitors’ products to discover ideas for product improvements. C) an unlimited budget that can be spent for the marketing program for a new product. D) designing a product around specific customers’ needs, wants, and preferences. E) the practices and processes that encourage the use of external and internal ideas and collaboration when conceiving, producing, and marketing new products.
180) ________Blank consists of practices and processes that encourage the use of external as well as internal ideas and internal as well as external collaboration when conceiving, producing, and marketing new products and services. A) Innovation partnership B) Open innovation C) Formalized collaboration D) Piggy-back thinking E) Stakeholder cooperation
Version 1
62
181) Open innovation helps organizations overcome________Blank, one of the organizational inertias common in new-product failures. A) groupthink B) intelligent failures C) incomplete protocols D) NIH barriers E) bad timing
182) You have received the Vitality Index chart shown here for your business, Parvaderm, and upon analysis you are concerned that
A) poor product quality has begun to affect sales is a negative way. B) new products are not contributing a high enough percentage of overall sales to sustain growth. C) poor execution of the marketing mix has led to low awareness of the brand name. D) it is not a good time to introduce new products because of competitor offerings. E) your company will not be able to sustain its rapid growth unless it spends more promotional dollars on its classic products.
Version 1
63
183) Referring to the Parvaderm Vitality Index figure, which of these best describes the trend in Parvaderm’s new-product vitality?
A) It has plateaued. B) It is growing slowly. C) It has shown a small decline, but as a normal fluctuation. D) It has shown explosive growth, indicating a high level of vitality. E) It is decreasing and has fallen to unacceptable levels.
Version 1
64
184) A firm’s Vitality Index is calculated by dividing the ________Blank by the company’s total sales revenue.
A) total profit B) revenue of its top three best-selling products C) profits from its newest products, during the year they become profitable D) revenues of new products, often those released during the past three years E) percentage of market share
185) The seven stages an organization goes through to identify business opportunities and convert them into salable products or services is referred to as the A) commercialization process. B) SWOT process. C) business prospect development cycle. D) Stage-Gate® opportunity sequence. E) new-product development process.
Version 1
65
186)
The new-product development process is
A) the informal process of brainstorming to generate new-product concepts at a marketing staff meeting. B) the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing. C) the seven stages an organization goes through to identify business opportunities and convert them into salable products or services. D) the three stages an organization goes through from idea generation to commercialization. E) a formalized protocol for new-product development that begins at the corporate level and ends at the functional level.
187) The new-product development process an organization goes through to identify business opportunities and convert them into salable products or services contains A) three main steps: research, production, and distribution. B) four distinct steps: research, evaluation, production, and distribution. C) five key phases ranging from idea generation to creating the first prototype. D) seven stages from new-product strategy development to commercialization. E) three phases: planning, implementation, and evaluation.
188) There are seven stages of the new-product development process. The stage of the newproduct development process that defines the role for a new product in terms of the firm’s overall objectives is the________Blank stage.
Version 1
66
A) idea generation B) screening and evaluation C) screening and analysis D) new-product strategy development E) product assessment
189) There are seven stages of the new-product development process. Following the newproduct strategy development stage is the second step, known as A) idea generation. B) screening and evaluation. C) screening and analysis. D) new-product strategy development. E) product assessment.
190) There are seven stages of the new-product development process. Stage 3 follows idea generation; it is the________Blank stage. A) tactic generation B) screening and evaluation C) screening and analysis D) new-product strategy development E) product assessment
191) There are seven stages of the new-product development process. After screening and evaluation is stage 4, the________Blank stage.
Version 1
67
A) idea generation B) creative direction C) business analysis D) new-product strategy development E) market testing
192) There are seven stages of the new-product development process. Stage 5 is the________Blank stage. A) business analysis B) screening and evaluation C) market testing D) commercialization E) development
193) There are seven stages of the new-product development process. Right before commercialization is stage 6, which is the________Blank stage. A) business analysis B) screening and evaluation C) market testing D) launch E) development
194)
There are seven stages of the new-product development process. The last stage is
Version 1
68
A) business analysis. B) screening and evaluation. C) market testing. D) commercialization. E) development.
195) One reason new products fail is that although most major corporations use a formal decision-making process, sometimes they fail to critically evaluate the progress along the way. This is why many firms have a________Blank to ensure that problems are corrected before proceeding to the next stage. A) written protocol B) Stage-Gate® process C) cross-functional team D) prototype test E) test market
196) The stage of the new-product development process that defines the role for a new product in terms of the firm’s overall objectives is referred to as A) distinctive competency determination. B) new-product strategy development. C) strategic marketing process. D) strategic invention process. E) product protocol definition.
197)
New-product strategy development is
Version 1
69
A) the stage of the new-product development process where specific product features and benefits are selected prior creating a new-product prototype. B) a formalized protocol for new-product development determined by the director of marketing. C) the stage of the new-product development process that defines the role for a new product in terms of the firm’s overall objectives. D) the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing. E) the stage of the new-product development process that turns the idea on paper into a prototype, which results in a demonstrable, producible product corresponding to its protocol.
198) In which stage of the new-product development process is a SWOT analysis used to identify the strategic role the new product might serve in the firm’s product portfolio? A) idea generation B) screening and evaluation C) business analysis D) development E) new-product strategy development
199) During the first stage of the new-product development process, two important activities take place. They are A) a SWOT analysis and environmental scanning. B) open innovation and business analysis. C) concept testing and product forecasting. D) R&D and operations setup. E) environmental scanning and open innovation.
Version 1
70
200) In which stage of the new-product development process would a firm use both a SWOT analysis and environmental scanning to develop a new-product protocol and identify its strategic role for the firm? A) idea generation B) screening and evaluation C) new-product strategy development D) business analysis E) development
201) Developing a pool of concepts to serve as candidates for new products is the________Blank stage of the new-product development process. A) open innovation B) screening and evaluation C) product development D) new-product strategy development E) idea generation
202)
Idea generation is the stage in the new-product development process in which the firm A) develops a pool of concepts to serve as candidates for new products. B) selects a single concept and scrutinizes it for all potential benefits and flaws. C) separates ideas into two categories: consumer-oriented and organization-oriented. D) performs a SWOT analysis and an environmental scan. E) uses a variety of techniques to screen and reject those ideas that have no merit.
203) Open innovation may enhance the________Blank stage of the new-product development process.
Version 1
71
A) internal collaboration B) screening and evaluation C) product development D) new-product strategy development E) idea generation
204)
All of these are sources for new-product ideasexcept which? A) competitors B) universities C) regulators D) crowdsourcing E) employees
205) Business researchers emphasize that firms must actively involve customers and suppliers in the new-product development process. This means that the focus should be on what the new product will________Blank rather than simply what they want. A) look like B) cost them C) do for them D) feel like E) consist of in terms of new features
206) Generating insights leading to marketing actions based on ideas from massive numbers of people is called
Version 1
72
A) brainstorming. B) groupthink. C) outsourcing. D) crowdsourcing. E) NIH method.
207) Dell used________Blank to generate 13,464 ideas online for new products as well as website and marketing improvements. A) brainstorming B) crowdsourcing C) group think D) outsourcing E) data mining
208)
IDEO is a company that A) creates innovative promotional programs for its clients’ new products. B) developed the formal Stage-Gate® process to commercialize new products for its
clients. C) uses “design thinking” to develop new products for other organizations. D) rates new products like Consumer Reports. E) runs patent searches for companies that don’t have an internal legal department.
209)
Which of these is an IDEO design?
Version 1
73
A) Crest Neat Squeeze toothpaste dispenser B) Under Armour SpeedForm Gemini 2 smart shoe C) 3M Post-it Notes D) Pampers Swaddlers diapers E) Apple iPod
210) In addition to seeking ideas from more well-known sources, organizations also get ideas from universities, inventors, and smaller, nontraditional firms. For example, General Mills partnered with Brigham Young University to license its patent for A) scones with coffee-flavored cream frosting. B) an Omega-3 enriched SKU for the Philadelphia cream cheese line. C) a carbonated yogurt called Go-Gurt Fizzix. D) deep fried chicken skins for people who cannot eat pork. E) a crispy baked macaroni and cheese snack that can be eaten out of a bag like Cheetos.
211) Because early-stage financing is almost always a problem for those starting a new business,________Blank is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources. A) crowdfunding B) open sourcing C) venture capital D) online banking E) crowdsourcing
212) Which firm uses crowdfunding to raise capital for products that are unlikely to get resources from traditional sources?
Version 1
74
A) IDEO B) Kickstarter.com C) Warren Buffet’s Berkshire Hathaway D) The Industrial Design Group E) Unfundable.com
213) The stage of the new-product development process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as A) development. B) Stage-Gate®. C) idea generation. D) business analysis. E) screening and evaluation.
214)
Screening and evaluation is the stage of the new-product development process A) at which prospective customers are exposed to new-product prototypes for the first
time. B) at which new-product concepts that have been found viable are converted into actual prototypes. C) that internally and externally assesses new-product ideas to eliminate those that warrant no further effort. D) that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections. E) where consumers evaluate a new product’s performance in an actual-use situation.
215)
The screening and evaluation stage of the new-product development process involves
Version 1
75
A) internal and external appraisals of new-product ideas. B) product selection and budgeting projections. C) business and cost analyses. D) patent searches and environmental scanning. E) idea selection and prototype development.
216) The________Blank stage of the new-product development process includes an examination of the technical feasibility for the product, such as 3M determining that the firm’s micro-replication technology (the 3,000 tiny gripping fingers per square inch) could be used to improve the gripping power of both batting and work gloves. A) development B) Stage-Gate® C) idea generation D) business analysis E) screening and evaluation
217) A 3M researcher worked with university students to develop the Post-it® Flag Highlighter. When his team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm’s objectives set earlier, at which stage of the newproduct development process was this product? A) idea generation B) screening and evaluation C) business analysis D) new-product strategy development E) concept testing
218)
Customer experience management (CEM) is
Version 1
76
A) the integration of the service component of the marketing mix with efforts to influence consumer demand. B) the unique combination of benefits received by targeted buyers that include quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. C) the process of managing the entire customer experience within the company. D) a cluster of benefits that an organization promises customers to satisfy their needs. E) the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.
219) ________Blank includes considering employee interactions with customers to ensure they are consistently delivered and experienced, clearly differentiated from other offerings, and relevant and valuable to the target market. A) Capacity management B) Customer experience management C) Derived demand D) Internal marketing E) The key service factor
220) An external evaluation with consumers that consists of preliminary testing of a newproduct idea rather than the actual finished product is referred to as A) new-product strategy development. B) idea generation. C) crowdsourcing. D) market testing. E) a concept test.
221)
A concept test is an
Version 1
77
A) internal evaluation among members of the entire cross-functional new-product development team that consists of preliminary testing of a new-product idea rather than the actual product. B) external evaluation with consumers that consists of preliminary testing of a newproduct idea rather than the actual finished product. C) internal evaluation that consists of preliminary testing of a new-product idea using a mock-up or prototype of the new item. D) in-house computer simulation of the new product that closely resembles the actual product to forecast sales. E) in-depth questionnaire filled out both by internal marketing personnel and external customers to ensure that the final product meets all the needs expressed in the original product plan.
222)
Concept tests are part of which stage in the new-product development process? A) development B) screening and evaluation C) idea generation D) new-product strategy development E) business analysis
223) The stage of the new-product development process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections is referred to as A) idea generation. B) business analysis. C) marketing analysis. D) product development. E) commercialization.
Version 1
78
224)
Business analysis is the stage of the new-product development process
A) during which the target markets are selected and resources are allocated to reach them. B) during which the proposed product is formally compared to competitors’ offerings. C) that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections. D) during which there is a formal accounting of all monies spent on R&D to determine the return on investment (ROI) that the new product will generate for the firm. E) that internally and externally evaluates new-product ideas to eliminate those warranting no further effort.
225) An assessment of the “business fit” of the proposed new product, from whether it can be economically produced to the marketing strategy needed to have it succeed, takes place during which stage of the new-product development process? A) business analysis B) screening and evaluation C) new-product strategy development D) development E) every stage with the exception of new-product strategy development
226) A general review of possible marketing and product synergies, economic analysis, and cannibalization potential would all take place during which stage of the new-product development process?
Version 1
79
A) business analysis B) screening and evaluation C) new-product strategy development D) development E) These activities are addressed at every stage except new-product strategy development.
227) Detailed financial projections and determination if a new product could be protected with patents or copyright are a part of which stage of the new-product development process? A) idea generation B) market testing C) business analysis D) development E) commercialization
228) All of these actions occur during the business analysis stage of the new-product development processexcept which? A) determining the equipment or technology necessary to produce the new product B) assessing the marketing and product synergies related to the company’s existing operations C) turning the idea on paper into a prototype D) determining whether the new product can be protected with a patent or copyright E) assessing whether the proposed new product fits with the company’s mission and objectives
229) a
A full-scale operating model of the product or service under development is referred to as
Version 1
80
A) sample. B) framework. C) template. D) prototype. E) blueprint.
230)
A prototype is a
A) miniature version of an actual new product used in concept testing to identify any changes that need to be made prior to its commercialization. B) full-scale operating model of the product or service under development. C) sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product’s commercial release. D) simulated operating model of the product given to consumers to use in full-scale field testing. E) digital version of a product produced in multiple shapes, colors, and sizes to determine which version of the product customers like best.
231) Big data, analytics, and artificial intelligence technologies used for accurate predictions are growing in importance for which stage of the new-product development process? A) idea generation B) market testing C) business analysis D) development E) commercialization
232) The stage of the new-product development process that turns an idea on paper into a prototype is referred to as
Version 1
81
A) idea generation. B) screening and evaluation. C) business analysis. D) commercialization. E) development.
233)
Development is the stage of the new-product development process in which A) initial ideas are generated and discussed. B) an idea on paper is turned into a prototype. C) product characteristics and product benefits are selected. D) cross-functional team members and leaders are selected and initial tasks are assigned. E) the first version of a product enters the marketplace.
234) In the new-product development process, product ideas that survive the business analysis stage proceed to the________Blank stage. A) market testing B) screening and evaluation C) business analysis D) development E) commercialization
235) At Mattel, Barbie is child-tested to be sure the doll cannot be broken apart, creating pieces that could accidentally choke a child. This type of consumer or safety test occurs during the________Blank stage of the new-product development process.
Version 1
82
A) new-product strategy development B) development C) business analysis D) screening and evaluation E) market testing
236) Google’s driverless cars have completed over three million miles of autonomous driving with a Google engineer in the passenger seat. The Google driverless car initiative is at which stage of the new-product development process? A) development B) market testing C) idea generation D) screening and evaluation E) business analysis
237) New-product strategy development calls for INGenius Co. to develop a battery recycler for the business market. Which is the most likely stage of the new-product development process in which manufacturing issues regarding the new product become an especially important element? A) market testing B) idea generation C) screening and evaluation D) development E) business analysis
238) You may have seen automobile ads that show a controlled crash of a car containing crash test dummies and the resultant vehicular damage. In the new-product development process, this safety test would occur during the________Blank stage.
Version 1
83
A) development B) market testing C) idea generation D) screening and evaluation E) business analysis
239) The stage of the new-product development process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as A) development. B) market testing. C) business analysis. D) commercialization. E) screening and evaluation.
240)
Market testing is the stage of the new-product development process that involves
A) exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. B) making sales and profit projections on prototype products to make go-no-go decisions. C) conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best. D) independently run comparison tests with similar products currently in the marketplace to determine which one performs best. E) conducting safety tests to determine whether the new product meets the established requirements when it isn’t used as planned.
Version 1
84
241) Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company’s line. A friend suggested combining spices from India with tea. In the________Blank stage of the new-product development process, the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well. A) idea generation B) screening and evaluation C) business analysis D) market testing E) commercialization
242) During which stage of the new-product development process are audiences allowed to preview actual movies likeAquaman orSpider-Man: Into the Spider-Verse (a sneak preview) so that changes might be made before they are released to the general public? A) market testing B) business analysis C) commercialization D) screening and evaluation E) concept testing
243) Breyer’s introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. At that time, Breyer’s new product was in the________Blank stage of the newproduct development process. A) commercialization B) screening and evaluation C) business analysis D) development E) market testing
Version 1
85
244)
Test marketing involves offering a product for sale A) to a random sample of people in the top 10 U.S. cities. B) in as broad a geographic region as possible. C) to consumers that are representative of the target market. D) on a limited basis in a defined area. E) only on certain days of the week and hours of the day.
245)
Which statement about test marketing is most accurate?
A) Test marketing is less common for consumer packaged goods compared with other types of products. B) Test marketing is a risk-free way to expose potential customers to new products. C) The three main kinds of test markets are standard, controlled, and simulated. D) Simulated test markets are most likely to alert competitors to a firm’s plans. E) Modified test markets are the least expensive and fastest type.
246) Introducing new-products sequentially into geographic areas of the U.S. to allow production levels and marketing activities to build up gradually to minimize the risk of newproduct failure is referred to as A) limited rollouts. B) phased rollouts. C) market-product expansion. D) regional rollouts. E) phased commercialization.
Version 1
86
247) A new beverage by Snapple is currently being sold only in the western United States. Over the next year, Snapple plans to introduce the beverage into areas in the Midwest and then the eastern United States. This distribution strategy during commercialization is referred to as a A) limited rollout. B) phased rollout. C) market-product expansion. D) regional rollout. E) phased commercialization.
248) If a firm contracts with IRI, a leading test market company, to track sales of a new product made to a panel of consumers and to assess the effectiveness of advertising and other promotion tactics, what type of test market is this? A) laboratory test market B) concept test market C) simulated test market D) controlled test market E) standard test market
249) To save time and money, companies often turn to________Blank, a technique that somewhat replicates a full-scale test market. A) partial rollouts B) screening and evaluation C) virtual reality testing D) time-to-market measures E) simulated test markets
250)
Simulated test markets (STMs) are often run in shopping malls where consumers are
Version 1
87
A) asked how much a person is willing to pay for an unfamiliar item. B) asked whether they saw the firm’s advertising campaign. C) questioned about how often they are likely to shop in that particular location. D) asked to identify differences between the consumer’s behavioral intention and actual behavior regarding a firm’s new product. E) shown the product and are asked about usage, reasons for purchase, and important product attributes.
251) The stage of the new-product development process that positions and launches a new product in full-scale production and sales is A) marketing program execution. B) disbursement. C) launch. D) commercialization. E) final distribution.
252)
Commercialization is the
A) point at which a new product has diffused throughout the marketplace. B) introduction of an offering to sequential geographic areas of the United States. C) process of exposing actual products to prospective consumers under realistic purchase conditions. D) stage of the new-product development process that positions and launches a new product in full-scale production and sales. E) point where new-product concepts are transformed into prototypes.
253)
Commercialization is the stage in the new-product development process
Version 1
88
A) at which the product is positioned and launched in full-scale production and sales. B) during which the firm performs its final evaluations of the new product. C) when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard. D) when advertising campaigns are evaluated using Starch scores to identify brand awareness. E) at which the product generates the greatest sales and profits.
254) The most expensive stage in the new-product development process for most products and services is A) commercialization. B) screening and evaluation. C) business analysis. D) development. E) market testing.
255) GoPro did an environmental scan that uncovered a social trend toward sharing experiences during which stage of the new product development process? A) business analysis B) new-product strategy development C) screening and evaluation D) commercialization E) idea generation
256)
GoPro uses all of these sources to generate new-product ideasexcept which?
Version 1
89
A) consumer shared content B) team of professional and amateur athletes C) employees D) retailers E) R&D lab IDEO
257) During which stage of the new-product development process does GoPro analyze a new product’s potential lifecycle, including time to break-even and time for potential responses by competitors? A) business analysis B) new-product strategy development C) screening and evaluation D) commercialization E) idea generation
258) During the business analysis stage of the new-product development process, GoPro considers the likelihood of________Blank, especially when introducing new, less expensive products like Hero Session that may hurt existing product sales. A) protocols B) foreign investment C) corruption D) cannibalization E) market testing
259) Briefly define a product. Explain the characteristics that would define a product, good, service, and an idea. Give an example of each.
Version 1
90
260) Explain the difference between consumer products and business products. Why are some products difficult to categorize as one or the other? Give an example of a business product, a consumer product, and a product that is difficult to categorize.
261)
What are the four types of consumer products? How do they differ?
262) Explain the differences in promotion between convenience, shopping, specialty, and unsought products.
263)
Explain what an unsought product is and give some examples.
Version 1
91
264) The movieManchester by the Sea opened originally in a select number of theaters a week before opening nationwide. After its theater run, it was shown on pay-per-view channels and then on premium movie channels. The movie also was made widely available at Redbox, via Amazon Prime Video, and on DVD/Blu-ray. What type(s) of consumer product is this movie? Explain your answer.
265)
Define derived demand and provide an examplenot included in the text.
266) What categories of products are classified as business support products? Give an example of each.
267)
Describe the ways services can be classified.
268) Characterize the difference between a product line and a product mix. Give an example of each.
Version 1
92
269)
Describe the different ways to define a product as new.
270) Compare continuous, dynamically continuous, and discontinuous innovations. Provide the marketing strategy and an example of each.
271)
What are the eight marketing reasons for new-product failures?
272) The Thirsty Dog! beverage is an example of a product that failed in the marketplace. Identify and describe the reason(s) for this unique item’s marketing-related product failure.
273) Identify and describe each stage in the new-product development process in the correct order. Version 1
93
274) What is idea generation in the new-product development process? From where do forward-thinking marketers get their ideas?
275)
How can a firm use a test market in its new-product development process?
Version 1
94
Answer Key Test name: Chap 10_16e_Kerin 1) D 2) C 3) E 4) E 5) B 6) E 7) B 8) B 9) D 10) D 11) A 12) D 13) C 14) E 15) A 16) E 17) A 18) D 19) C 20) A 21) D 22) C 23) B 24) E 25) E 26) B Version 1
95
27) A 28) A 29) C 30) C 31) D 32) A 33) D 34) A 35) D 36) E 37) B 38) E 39) D 40) C 41) A 42) A 43) B 44) B 45) D 46) C 47) B 48) E 49) B 50) E 51) C 52) B 53) B 54) D 55) E 56) A Version 1
96
57) A 58) D 59) C 60) C 61) D 62) E 63) A 64) C 65) D 66) E 67) D 68) E 69) A 70) C 71) D 72) D 73) D 74) C 75) E 76) B 77) A 78) D 79) D 80) E 81) C 82) E 83) B 84) A 85) B 86) E Version 1
97
87) C 88) A 89) B 90) C 91) A 92) B 93) D 94) D 95) B 96) A 97) D 98) C 99) E 100) E 101) C 102) B 103) E 104) B 105) A 106) D 107) E 108) E 109) A 110) D 111) A 112) C 113) E 114) E 115) D 116) B Version 1
98
117) C 118) D 119) A 120) B 121) A 122) E 123) A 124) A 125) D 126) C 127) E 128) D 129) A 130) E 131) A 132) C 133) B 134) A 135) C 136) E 137) A 138) B 139) C 140) D 141) E 142) D 143) D 144) B 145) E 146) C Version 1
99
147) E 148) D 149) B 150) C 151) D 152) A 153) D 154) A 155) C 156) A 157) B 158) A 159) A 160) A 161) E 162) D 163) D 164) E 165) D 166) A 167) A 168) B 169) E 170) C 171) A 172) B 173) B 174) B 175) E 176) D Version 1
100
177) B 178) B 179) E 180) B 181) D 182) B 183) E 184) D 185) E 186) C 187) D 188) D 189) A 190) B 191) C 192) E 193) C 194) D 195) B 196) B 197) C 198) E 199) A 200) C 201) E 202) A 203) E 204) C 205) C 206) D Version 1
101
207) B 208) C 209) A 210) C 211) A 212) B 213) E 214) C 215) A 216) E 217) B 218) C 219) B 220) E 221) B 222) B 223) B 224) C 225) A 226) A 227) C 228) C 229) D 230) B 231) C 232) E 233) B 234) D 235) B 236) A Version 1
102
237) D 238) A 239) B 240) A 241) D 242) A 243) E 244) D 245) C 246) D 247) D 248) D 249) E 250) E 251) D 252) D 253) A 254) A 255) B 256) E 257) A 258) D
Version 1
103
CHAPTER 11 1)
Which statement about Gatorade is most accurate?
A) The name Gatorade was chosen because as an energy drink it “got you outta the gate—fast.” B) The name Gatorade was coined by a team who lost to the University of Florida Gators, attributing the Gator win to the “aid” they got from the rehydrating beverage. C) The green color of the original lemon-lime Gatorade was based on the University of Florida’s alligator mascot. D) Gatorade was developed by PepsiCo as a cause-marketing project to provide resources for women’s sports at the University of Florida as a result of the passage of Title IX in 1972. E) Gatorade is the only sports drink marketer that doesn’t use sports celebrities to endorse its products.
2)
Gatorade is most likely in which stage of its product life cycle? A) introduction B) growth C) maturity D) decline E) acceleration
3)
Which statement regarding Gatorade’s branding is most accurate?
Version 1
1
A) Gatorade uses the same formula for all its products and simply changes the brand name when introducing new flavors. B) Gatorade’s success can be attributed to management’s decision to find and then stick with one channel of distribution. C) Gatorade changed its color, packaging, and size of items in the product line for the domestic market so that they would not conflict with those marketed to foreign markets. D) Gatorade has used the same packaging since the product debuted in 1965. E) Gatorade has changed its product formulation, packaging, and advertising over the years in response to changes in the marketplace.
4) Gatorade Thirst Quencher was concocted in 1965, but more recently its marketers introduced Gatorade Bolt24, a 24-hour hydration beverage, in 2019. This introduction is an example of a A) brand extension. B) co-branding. C) primary demand. D) product line extension. E) product class.
5) Gatorade offers a range of product offerings. The firm uses one name for all its products in a product class. Gatorade is using a________Blank strategy. A) multibranding B) family branding C) co-branding D) dual branding E) mixed branding
Version 1
2
6) The launch by Gatorade of Gatorade chews, bars, powders, shakes, and yogurt is evidence of________Blank development. A) dynamic B) discontinuous C) product D) structural E) simultaneous
7) Gatorade Thirst Quencher displays the letter G front and center along with the brand's iconic bolt. According to the company, "G represents the heart, hustle, and soul of athleticism and will become a badge of pride for anyone who sweats, no matter where they're active." This is an example of________Blank benefits of its packaging. A) perceptual B) functional C) communications D) physical E) tangible
8) A concept that describes the stages a product goes through in the marketplace— introduction, growth, maturity, and decline—is referred to as the A) retail life cycle. B) product life cycle. C) marketing mix. D) product growth cycle. E) diffusion of product innovation.
9)
The product life cycle is
Version 1
3
A) the average life span of a product. B) a concept that describes the stages a new product goes through from product concept to commercialization. C) a concept that describes the stages a product goes through in the marketplace—early growth, accelerated development, maturity, and decline. D) a concept that describes the stages a product goes through in the marketplace— introduction, growth, maturity, and decline. E) the amount of time it takes a product innovation to completely diffuse in the marketplace.
10) Figure 11-1 represents the stages of the product life cycle. What does the section of the graph labeled A represent?
A) introduction B) launch C) growth D) inception E) decline
Version 1
4
11) Figure 11-1 represents the stages of the product life cycle. What does the section of the graph labeled B represent?
A) progression B) maturity C) growth D) accelerated development E) decline
Version 1
5
12) Figure 11-1 represents the stages of the product life cycle. What does section of the graph labeled C represent?
A) consolidation B) maturity C) growth D) stabilization E) decline
Version 1
6
13) Figure 11-1 represents the stages of the product life cycle. What does the section of the graph labeled D represent?
A) retrenching B) maturity C) growth D) failure E) decline
Version 1
7
14) Figure 11-1 represents the stages of the product life cycle. What does the curve labeled X represent?
A) total variable costs B) total fixed costs C) total industry profit D) total industry sales revenue E) total research and development costs
Version 1
8
15) Figure 11-1 represents the stages of the product life cycle. What does the curve labeled Y represent?
A) total variable costs B) total fixed costs C) total industry profit D) total industry sales revenue E) total research and development costs
16)
What is the marketing objective for the introduction stage of the product life cycle? A) begin harvesting B) stabilize market share C) stress differentiation D) maintain brand loyalty E) gain awareness
17)
What is the marketing objective for the growth stage of the product life cycle?
Version 1
9
A) minimize promotion B) increase market share C) stress differentiation D) gain awareness E) maintain brand loyalty
18)
What is the marketing objective for the maturity stage of the product life cycle? A) begin deletion B) implement skimming C) stress differentiation D) gain awareness E) maintain brand loyalty
19)
What is the marketing objective for the decline stage of the product life cycle? A) start harvesting B) add outlets C) stress differentiation D) gain awareness E) maintain brand loyalty
20) The________Blank stage of the product life cycle occurs when a product is offered for sale to its intended target market.
Version 1
10
A) concept B) introduction C) growth D) maturity E) decline
21) The lack of profit in the introductory stage of the product life cycle is very often the result of A) pricing the product too low in an attempt to quickly gain market share. B) targeting the wrong target market segment. C) a lack of wholesaler support. D) the large investment costs in product development. E) ineffective execution of the marketing program.
22) The marketing objective for a product in the________Blank stage of the product life cycle is to create consumer awareness and stimulate trial. A) introduction B) growth C) maturity D) decline E) acceleration
23) Marketing for a product in the introduction stage of its product life cycle should focus primarily on gaining awareness and which other marketing objective?
Version 1
11
A) stressing differentiation B) stimulating trial C) fostering brand loyalty D) gaining wide distribution E) targeting a niche
24) The GPS SmartSole is a discreet wearable insole that fits in the shoe and provides GPS tracking of the wearer. This product is being marketed as an inexpensive solution for caregivers whose charges are prone to wandering, like those with Alzheimer’s disease or autism. When the insoles were first made available to consumers, what was the marketing objective for the company at that early stage of the product life cycle? A) stress differentiation from other saving products B) maintain brand loyalty C) allow users to spend time doing other things D) create awareness and stimulate trial E) target a whole new group of consumers
25) American Ninja Warrior began airing in 2012 on NBC during the summer season when TV ratings are normally low and network TV viewing options consisted primarily of reruns. The marketing goals for the first season on that network included making television viewers aware of the program’s existence and generating enough excitement about the show so that millions of viewers would watch the athletic competition. At the airing of the first episode that year,American Ninja Warrior was in what stage of its product life cycle? A) introduction B) growth C) maturity D) decline E) development
Version 1
12
26)
The initial purchase of a product by a consumer is referred to as A) a product sampling. B) a sample buy. C) a trial. D) an assessment. E) an examination period.
27) The desire for a product class rather than for a specific brand is called________Blank demand. A) selective B) primary C) derived D) generic E) secondary
28) Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers. Large expenditures like this are often made to stimulate________Blank when there are few competitors with the same product. A) secondary demand B) introductory demand C) primary demand D) discretionary demand E) selective demand
29) Primary demand is a desire for the________Blank rather than for a________Blank; it is often the focus of marketing when there are few competitors with the same product. Version 1
13
A) product class; specific brand B) problem solution; product category C) brand name; product category D) novelty; problem solution E) product concept; tangible product
30) Promotional expenditures at the introduction stage of the product life cycle, when few if any competitors exist, are best spent on A) contests and sweepstakes to stimulate selective demand. B) product samples to create secondary demand. C) advertising to stimulate primary demand. D) personal endorsements to generate word-of-mouth demand. E) coupons to maintain brand loyalty or static demand.
31) When the Egg Farmers of Canada implemented its “Get Cracking” advertising campaign, the organization was trying to stimulate________Blank demand. A) secondary B) selective C) derived D) generic E) primary
32) Cotton Incorporated is funded by cotton growers in the United States. It developed the “Cotton: The Fabric of Our Lives” advertising campaign as part of its mission “to ensure that cotton remains the first choice among consumers in apparel and home products.” Because Cotton Incorporated promotes all cotton producers, it is stimulating________Blank demand.
Version 1
14
A) selective B) generic C) derived D) primary E) secondary
33)
The preference for a specific brand is called________Blank demand. A) selective B) secondary C) primary D) derived E) explicit
34) As more competitors launch their own products in a product class and the product progresses along its life cycle, company attention is focused on creating________Blank demand, rather than just demand for the product class. A) primary B) selective C) derived D) generic E) secondary
35) Northland Juices, a division of New York-based Apple & Eve, competes with Ocean Spray in the cranberry juice category. To be successful, Northland must create________Blank demand so it will be chosen over competitors.
Version 1
15
A) primary B) derived C) generic D) selective E) secondary
36) During the introduction stage of the product life cycle, the place element of the marketing mix requires a focus on A) increasing inventory levels at warehouses and distribution centers to meet potential demand. B) gaining distribution, even though some channel partners will be reluctant to carry the new product. C) using an intermodal logistics system to get the products through the marketing channel as quickly as possible. D) building storage warehouses and distribution centers to establish an efficient infrastructure for the new product. E) obtaining contracts with independent sales agents and brokers instead of using the firm’s salesforce.
37) The two most common pricing alternatives for products in the introduction stage of the product life cycle are A) skimming pricing and penetration pricing. B) price lining and bundle pricing. C) markdown pricing and experience curve pricing. D) skimming pricing and bundle pricing. E) penetration pricing and experience curve pricing.
Version 1
16
38) During the introduction stage of the product life cycle,________Blank pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development. A) a penetration B) a cost-plus C) a target ROI D) a skimming E) an above-market
39) A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and to A) capitalize on the price insensitivity of early buyers. B) discourage competition from other manufacturers. C) ease the product into its maturity stage. D) gain the largest unit sales possible. E) gain more distribution outlets.
40) 3M is a master of the________Blank pricing strategy, which uses a high initial price for a new product. A) penetration B) cost-plus C) ROI D) market-oriented E) skimming
41) All of these are true about a skimming pricing strategy when used during the introduction stage of the product life cycleexcept which?
Version 1
17
A) It capitalizes on the price insensitivity of early buyers. B) It typically results in high profit margins. C) It encourages competitive entrants into the market. D) It helps recover the R&D costs of the new offering. E) It is effective for building unit volume.
42) Xerox pioneered the first portable fax machine. In 1980, the price was a hefty $12,700. Xerox used________Blank pricing strategy to help recover its research and development costs. A) a penetration B) a cost-plus C) a skimming D) a target ROI E) an above-market
43) During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price for a new product is referred to as________Blank pricing. A) penetration B) cost-plus C) target ROI D) below-market E) skimming
44) Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases the components and assembles the phones in Shenzhen, located in southern China. These smartphones retail for about $65, significantly less than the $250 to $800 for smartphones marketed by Apple or Samsung, the top providers. Xunrui Communications is most likely using which pricing strategy in this example?
Version 1
18
A) penetration pricing B) cost-plus pricing C) target ROI pricing D) above-market pricing E) skimming pricing
45)
Which statement about the introduction stage of the product life cycle is most accurate?
A) If a firm’s product is especially good, efforts should be made to create selective demand rather than primary demand to allow the firm to distinguish itself from competitors. B) During the introduction stage, it is best to avoid a skimming pricing strategy. C) During the introduction stage, it is best to avoid a penetration pricing strategy. D) A firm should introduce the identical product at several different price points in order to gauge customer price sensitivity. E) Because of large initial investment costs, overall industry profits are often initially negative.
46) The Tesla Motors Model S, an all-electric-powered automobile, is in which stage of its product life cycle? A) growth B) maturity C) introduction D) decline E) accelerated development
47) Sony sells a 75” XBR-X940D television with 4K resolution, HDR support, Android TV interface with a multitude of apps, and a premium direct LED lighting system. This Sony TV is in which stage of its product life cycle?
Version 1
19
A) introduction B) growth C) maturity D) decline E) harvest
48) LED (light-emitting diode) lightbulbs, such as the Cree LED bulb, have been available for only a few years in low lighting levels (lumens). They are designed to replace incandescent and compact fluorescent lightbulbs, in part because of a federal law that phases out incandescent lightbulbs in favor of more energy-efficient ones. LED bulbs are more expensive but will last up to 20 years. In what stage of the product life cycle is this product? A) growth stage B) decline stage C) accelerated development stage D) introduction stage E) maturity stage
49) Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they must be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year. Which of these would be theleast sound marketing program decision? A) Select a skimming pricing strategy to position the product as “premium.” B) Seek widespread distribution to gain a foothold in what might be a potentially huge market. C) Limit production capacity until you are certain consumers will actually want the product. D) Avoid a connection to the Eveready brand until the product has proven itself. E) Use multiple brand names to discourage other competitors from entering the market.
Version 1
20
50) The________Blank stage of the product life cycle is characterized by rapid increases in sales. A) introduction B) growth C) maturity D) decline E) harvest
51) The appearance of competitors often signals the beginning of the________Blank stage of the product life cycle. A) decline B) maturity C) introduction D) growth E) harvest
52)
At which stage in the product life cycle do industry profits usually peak? A) introduction B) growth C) maturity D) decline E) accelerated development
53)
Which of these is a characteristic of the growth stage of the product life cycle?
Version 1
21
A) Advertising emphasis switches to selective demand. B) A growing proportion of trial purchases come from brand loyal users. C) Product features remain unchanged. D) Profit margins increase as sales increase. E) The product is sold in a narrowly selected number of retail outlets.
54) People who tried a product, were satisfied, and bought it again are called________Blank purchasers. A) frequent B) recurring C) customary D) habitual E) repeat
55) Men who tried the Gillette Fusion razor were so satisfied with it that 60 percent of them adopted the product permanently. Men who repurchased the razor are known as________Blank purchasers. A) repeat B) routine C) cyclical D) established E) habitual
56) During the________Blank stage of the product life cycle, product proliferation occurs as competitors attempt to differentiate their company’s brand from others.
Version 1
22
A) introduction B) growth C) maturity D) stability E) development
57) In which stage of the product life cycle is it important to broaden distribution of the product? A) introduction B) growth C) maturity D) decline E) harvest
58)
Which of these is a characteristic of the growth stage of the product life cycle? A) Advertising emphasis switches to primary demand. B) The proportion of repeat purchasers to initial purchasers grows. C) The number of distribution outlets shrinks due to growing inefficiencies. D) Profit margins increase as sales increase. E) Product features remain consistent to maximize profits.
59)
Which of these is a characteristic of the growth stage of the product life cycle?
Version 1
23
A) Advertising emphasis switches to primary demand. B) The proportion of initial purchasers to repeat purchasers grows. C) New or modified product features are added. D) Profit margins increase as sales increase. E) There are a limited number of retail outlets for greater quality control.
60) Apple launched its iPad in 2010 and it, along with its companions iPad Pro and iPad mini, have become the world’s best-selling tablet devices with their multitouch user interfaces and the availability of hundreds of thousands of apps. The product class has experienced a tremendous increase in terms of sales and the addition of formidable competitors such as Samsung Galaxy, Amazon Fire, and Lenovo Tab, all vying for market share. In which stage of the product life cycle are the iPad and other tablets? A) maturity stage B) commercialization stage C) accelerated development stage D) growth stage E) introduction stage
61) Electric automobiles like the Chevrolet Spark made by General Motors are in the introductory stage of the product life cycle. By comparison, 3D printers such as the LulzBot Mini are in the________Blank of the product life cycle. A) decline stage B) commercialization stage C) accelerated development stage D) growth stage E) maturity stage
Version 1
24
62) The________Blank stage of the product life cycle is characterized by the slowing of total industry sales or product class revenue, causing marginal competitors to begin leaving the market. A) decline B) maturity C) introduction D) growth E) deceleration
63) In which stage of the product life cycle do marginal competitors begin to leave the market? A) introduction B) growth C) decline D) maturity E) harvest
64) At what stage of the product life cycle does it first become true that most consumers who would buy a product are either repeat purchasers of the item or have tried and abandoned it? A) introduction B) growth C) maturity D) decline E) harvest
65)
During the maturity stage of the product life cycle, profit declines primarily because
Version 1
25
A) there are fewer and fewer competitors in the market. B) promotional expenditures increase. C) production costs increase the more a firm has to manufacture the same product. D) there is fierce price competition among sellers. E) more consumers enter the market seeking bargains.
66)
Promotional expenses at the maturity stage of the product life cycle are often designed to A) convince those who have abandoned the brand to try it again. B) maintain market share. C) create a sense of nostalgia. D) attract more price-conscious consumers. E) thwart the growing number of competitors that have entered the market.
67)
Which statement regarding the maturity stage of the product life cycle is most accurate? A) Technological forces often push a product from the introduction stage to the maturity
stage. B) During the maturity stage, companies add more distribution outlets to maximize target market coverage. C) Sales increase at a slower rate as fewer new buyers enter the market. D) Industry profits peak because production and distribution costs are declining. E) Total industry profits exceed total industry sales.
68)
At the maturity stage of the product life cycle, marketing emphasis
Version 1
26
A) is directed toward generating more consumer awareness. B) switches to finding more channel intermediaries to carry the product. C) is on stimulating primary demand for the product. D) aims to hold market share through further product differentiation and finding new buyers and uses. E) is redirected, with salespeople allocating less time to selling the product.
69) At which stage of the product life cycle is a company likely to have its most complete product line? A) introduction B) growth C) maturity D) decline E) accelerated development
70)
Which of these is an example of a product in the maturity stage of the product life cycle? A) pocket video cameras B) driverless vehicles C) 3D HDTVs D) presweetened breakfast cereals E) fitness trackers
71)
At which stage of the product life cycle are microwave ovens?
Version 1
27
A) introduction B) growth C) maturity D) decline E) redevelopment
72)
Sales exhibit a downward trend throughout which stage of the product life cycle? A) introduction B) growth C) maturity D) decay E) decline
73)
Which of these occurs during the decline stage of the product life cycle? A) Sales drop. B) Flanking product lines are added. C) The product becomes less vulnerable to changes in the marketing environment. D) Promotional support is increased. E) Competition becomes intense as more competitors enter the market.
74)
Which statement about the decline stage of the product life cycle is most accurate?
Version 1
28
A) Somewhat paradoxically, in the decline stage, sales decline even though profits increase. B) A product always enters the decline stage as the result of a major product flaw or marketing misstep. C) A major reason that a firm’s product enters the decline stage is change in the environment. D) The only real step that can be taken to avoid the decline stage and ultimately extinction is to increase marketing expenditures as soon as the product enters its maturity stage. E) Service industries are exempt from the decline stage because of their intangible nature.
75)
In terms of its effect on faxing, e-mail has
A) led to a significant number of improvements in fax machine technology to keep the product class competitive. B) led to a significant decrease in fax machine sales because e-mail better suits the needs of the business community. C) led to a significant increase in fax machine purchases due to distrust of e-mail spam. D) only a moderate impact since the two technologies do not directly compete with each other. E) caused most fax machine manufacturers to incorporate new Internet technology to send, receive, and print e-mails through a wireless connection to a personal computer.
76) Products tend to consume a disproportionate share of management and financial resources relative to their future worth throughout which stage of the product life cycle? A) innovation B) growth C) maturity D) decline E) harvest
Version 1
29
77)
Which products are in the decline stage of the product life cycle? A) desktop PCs B) smartphones C) 3D printers D) health insurance E) tablet devices
78)
Analog TVs are in which stage of their product life cycle according to the text? A) accelerated downturn B) cancellation C) decline D) maturity E) devaluation
79) In the late 1950s and 1960s, television Westerns were extremely popular and includedGunsmoke, Bonanza, Wagon Train, andThe Big Valley. When ratings declined as viewers’ tastes changed, production of them waned. The television Western was a product category that had entered the________Blank stage of its product life cycle. A) deletion B) cancellation C) decline D) maturity E) harvesting
Version 1
30
80) Apple introduced the iPhone and iPad with multitouch screens, as well as the Magic Trackpad, also a multitouch device. These devices require consumers to use gestures (touch, swipe, tap, etc.) to perform various functions. This could make the mouse, a device Apple invented in 1977 for its Apple II, obsolete. With the emergence of multitouch technologies, the mouse most likely is now in the________Blank stage of its product life cycle. A) deletion B) cancellation C) decline D) maturity E) harvesting
81) Your product has been suffering from steadily eroding sales. You have tried a number of options to revitalize the product’s sales and profits, but after seven changes in your strategy, you have yet to find success. Which action would be theleast appropriate next step? A) Delete the product from the line. B) Retain the product, but reduce its marketing costs. C) Stimulate primary demand. D) Stimulate selective demand. E) Rebrand the product.
82) To handle products in the decline stage of the product life cycle, companies often use either a________Blank strategy or a________Blank strategy. A) divesting; harvesting B) diversification; contraction C) deletion; harvesting D) deletion; diversification E) building; divesting
Version 1
31
83) A strategy of dropping a product from the product line during the decline stage of the product life cycle is referred to as A) trimming. B) elimination. C) paring down. D) deletion. E) harvesting.
84) Even though Liquid Paper correction fluid is in the________Blank stage of its product life cycle, Sanford, its manufacturer, has not deleted it from its line because there is still a residual core of consumers who use the product. A) decline B) introduction C) growth D) maturity E) deceleration
85) In the late 1950s and 1960s, television Westerns were extremely popular and includedGunsmoke, Bonanza, Wagon Train, andThe Big Valley. When ratings declined as viewers’ tastes changed, production companies used_______Blank strategy and stopped producing all television Westerns when the networks stopped showing them. A) a diversification B) an aggregation C) a segmentation D) a deletion E) a harvesting
Version 1
32
86) When a product reaches the decline stage of the product life cycle, a firm has two choices. One choice involves product deletion—dropping it from a firm’s product line. The other is called________Blank, which retains the product in the product line but reduces marketing costs. A) skimming B) paring C) divesting D) milking E) harvesting
87)
A strategy of harvesting may be employed in the decline stage of a product life to A) maintain primary demand for a product category. B) acquire as many new customers as possible. C) maintain the ability to meet ongoing customers’ requests. D) eliminate all production costs. E) reposition the product.
88) Three important aspects of product life cycles are their length, the shape of their sales curves, and A) the propensity for consumers to switch brands. B) the difference between product classes and forms. C) the impact of word-of-mouth. D) whether competitors create rival offerings. E) how environmental forces change the environment.
89) The length of time it takes for a product category to move from the introduction stage to the decline stage of its product life cycle is
Version 1
33
A) 18 months. B) 5 to 10 years. C) about 20 years. D) about 30 years. E) dependent of a variety of factors, including the type of product.
90)
There is no set time that a product takes to move through its life cycle. But as a rule, A) services are highly affected by social trends while tangible goods are not. B) consumer products have shorter life cycles than business products. C) business products typically show very short maturity stages. D) technological change tends to lengthen product life cycles. E) product life cycles are longer for ideas than for services.
91)
All of these statements are true about the length of product life cyclesexcept which? A) The length of service life cycles is typically longer than those for tangible products. B) There is no set time that a product takes to move through its life cycle. C) Technological change shortens product life cycles as new products replace existing
ones. D) The use of mass media tends to shorten product life cycles. E) Consumer products have shorter life cycles than business products.
Version 1
34
92) The product life cycle shown in Box A in Figure 11-3 represents a ________Blank product.
A) low-learning B) fashion C) fad D) high-learning E) generalized
Version 1
35
93) The product life cycle shown in Box B in Figure 11-3 represents a ________Blank product.
A) high-learning B) fashion C) low-learning D) fad E) generalized
Version 1
36
94) The product life cycle shown in Box C in Figure 11-3 represents a ________Blank product.
A) high-learning B) fashion C) low-learning D) fad E) generalized
Version 1
37
95) The product life cycle shown in Box D in Figure 11-3 represents a ________Blank product.
A) high-learning B) low-learning C) fashion D) fad E) generalized
96) The shapes of the product life cycle curve for high-learning, low-learning, fashion, and fad products vary as does the A) actual length of time a product stays in any stage of the life cycle. B) individual criteria selected to place a firm in a stage of the life cycle. C) importance of the marketing mix elements. D) importance of environmental forces. E) importance of new product innovation.
Version 1
38
97) A________Blank product is one for which significant customer education is required and there is an extended introductory period in its life cycle. A) low-learning B) fashion C) fad D) substitute E) high-learning
98)
Which product would have a high-learning product life cycle curve? A) electric cars B) five-blade razors C) fleece bikinis D) titanium golf driver E) spicy ketchup
99) Interactive television with video-on-demand capabilities changes how people watch television and how consumers access the Internet. This technology requires significant customer education for many people. What type of product life cycle curve would be associated with this product? A) generalized B) high-learning C) low-learning D) fashion E) fad
Version 1
39
100) A________Blank product requires little learning by the consumer, and the benefits of the purchase are readily understood. A) high-learning B) fashion C) fad D) substitute E) low-learning
101)
Which product would have a low-learning product life cycle curve? A) electric cars B) five-blade razors C) interactive television D) software for learning a foreign language E) convection ovens
102) ________Blank products have a product life cycle that reflects benefits that are readily understood by consumers, and because the products are easily imitated by competitors, the appropriate marketing strategy is to broaden distribution quickly. A) High-learning B) Fashion C) Fad D) Low-learning E) Generalized
103)
A________Blank product is a style of the times.
Version 1
40
A) high-learning B) low-learning C) fashion D) fad E) substitute
104)
Which products would have a fashion product life cycle curve? A) sunglasses B) parabolic skis C) personal flotation devices D) razor blades E) hockey helmets
105) Products that are introduced, decline, and seem to return have a________Blank product life cycle. A) high-learning B) low-learning C) fashion D) fad E) generalized
106) Products that experience rapid sales on introduction and then an equally rapid decline are called________Blank products.
Version 1
41
A) high-learning B) low-learning C) fashion D) fad E) primary
107)
Which products would have a fad product life-cycle curve? A) women’s hosiery B) fidget spinners C) electric cars D) convection ovens E) sport drinks
108)
Which of the following products would have a fad product life-cycle curve? A) aquarium fish B) hoverboards C) riding lawn mowers D) calculators E) backpacks
109) In terms of their likely product life cycles, detox tea, unicorn-themed clothing, and beard oil are best categorized as being________Blank products.
Version 1
42
A) fad B) low-learning C) fashion D) generalized E) high-learning
110) Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they are to be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year. Which of these is the best description of the product life cycle of this product? A) rapid growth followed by rapid decline B) long, level beginning, and rapid ascent C) moderately slow introduction, followed by modest growth, gradually leveling off D) high introductory sales followed by rapid decline E) high initial sales followed by slow decline
111)
An entire product category or industry is referred to as a product A) form. B) class. C) line. D) mix. E) item.
112)
Product form refers to
Version 1
43
A) the legal description of an individual item including all its salient characteristics. B) the SKU designation assigned to a product item. C) a series of product items that share similar characteristics in terms of usage. D) variations within the product class. E) a group of product items that comprise an industry.
113) Prerecorded music is an example of a product________Blank, and digital music downloading and streaming are an example of a product A) line; class. B) class; form. C) family; line. D) brand; line. E) form; class.
114) Footwear is an example of a product________Blank while men’s dress shoes are an example of a product A) line; class. B) family; line. C) class; form. D) brand; line. E) form; class.
115) Vinyl records, cassette tapes, CDs, and music downloads (MP3 files) are all members of the same product
Version 1
44
A) form. B) mix. C) line. D) item. E) class.
116)
The life cycle of a product depends on product adoption by consumers as measured by A) sales. B) word-of-mouth. C) number of competitors. D) regulators. E) product proliferation.
117) When a product spreads through the population, it is called the________Blank of innovation. A) extension B) proliferation C) adoption D) dispersal E) diffusion
118)
The key idea behind diffusion of innovation is that
Version 1
45
A) not all consumers accept a new product at the same time; adoption of a product spreads slowly throughout the population. B) once a product enters the market, the time span between awareness and purchase is incredibly short. C) the introduction of an entire new product class almost always diffuses the importance of its predecessor within a matter of months. D) adoption of a new product line does not change the diffusion rate of older lines in the market. E) the rate of adoption is independent of other product form innovations or competitive products in the marketplace.
119) The classifications of innovators, early adopters, early majority, late majority, and laggards are based upon A) how frequently a consumer uses a product. B) the number and strength of competitors. C) when consumers begin buying a new product. D) the time it takes to educate a consumer in the use of a new technology. E) how quickly consumers respond to an advertising message or campaign.
120) The largest numbers of product adopters with respect to the diffusion of innovation are found among A) innovators and laggards. B) early majority and late majority. C) late majority and laggards. D) innovators and early majority. E) innovators and early adopters.
Version 1
46
121) The consumers who adopt a new product in the earliest stage of a product life cycle are called A) early adopters. B) early majority. C) late majority. D) laggards. E) innovators.
122)
The consumers represented by Segment A in Figure 11-5 are called
A) early adopters. B) late majority. C) laggards. D) early majority. E) innovators.
Version 1
47
123)
The consumers represented by Segment B in Figure 11-5 are called
A) early adopters. B) late majority. C) laggards. D) early majority. E) innovators.
124)
The consumers represented by Segment C in Figure 11-5 are called
Version 1
48
A) early adopters. B) late majority. C) laggards. D) early majority. E) innovators.
125)
The consumers represented by Segment D in Figure 11-5 are called
A) early adopters. B) late majority. C) laggards. D) early majority. E) innovators.
Version 1
49
126)
The consumers represented by Segment E in Figure 11-5 are called
A) early adopters. B) late majority. C) laggards. D) early majority. E) innovators.
127)
For any product to be successful, it must be purchased by A) early adopters and laggards. B) early majority and late majority. C) late majority and laggards. D) innovators and early majority. E) innovators and early adopters.
128) In terms of the diffusion of innovation, innovators account for________Blank percent of product adopters.
Version 1
50
A) 2.5 B) 13.5 C) 16 D) 34 E) 50
129)
As product adopters, innovators A) have a fear of debt and use neighbors and friends as information sources. B) are skeptical and have below average social status. C) are deliberate and use many informal social contacts. D) are leaders in social settings and have a slightly above average education. E) are venturesome, higher educated, and use multiple information sources.
130) According to the diffusion of innovation concept, consumers who are venturesome, higher educated, and use multiple information sources in their adoption of products are called A) innovators. B) early adopters. C) the early majority. D) the late majority. E) laggards.
131) When Apple introduced the Apple II personal computer in 1977, industry analysts predicted that very few would be sold. While relatively few in number, early consumers were young, highly educated, adventuresome, and well-informed. Marketers at IBM and Compaq were encouraged because other less adventurous consumers, like businesspeople, would likely adopt personal computers later. Based on the diffusion of innovation concept, those first buyers of personal computers were
Version 1
51
A) early adopters. B) early majority. C) innovators. D) product leaders. E) diffusion leaders.
132) In terms of the diffusion of innovation, early adopters account for________Blank percent of product adopters. A) 2.5 B) 13.5 C) 16 D) 34 E) 50
133)
According to the diffusion of innovation concept, early adopters A) have a fear of debt and use neighbors and friends as information sources. B) are skeptical and have below average social status. C) are deliberate and use many informal social contacts. D) are leaders in social settings and have a slightly above average education. E) are venturesome, higher educated, and use multiple information sources.
134) According to the concept of the diffusion of innovation, consumers who are leaders in social settings and have slightly above average education are called
Version 1
52
A) innovators. B) early adopters. C) the early majority. D) the late majority. E) laggards.
135) In terms of the diffusion of innovation, early majority accounts for________Blank percent of product adopters. A) 2.5 B) 13.5 C) 16 D) 34 E) 50
136)
As product adopters in the diffusion of innovation, members of the early majority A) have a fear of debt and use neighbors and friends as information sources. B) are skeptical and have below average social status. C) are deliberate and use many informal social contacts. D) are leaders in social settings and have a slightly above average education. E) are venturesome, higher educated, and use multiple information sources.
137) According to the concept of the diffusion of innovation, consumers who are deliberate adopters with many informal social contacts are called
Version 1
53
A) innovators. B) early adopters. C) the early majority. D) the late majority. E) laggards.
138)
As product adopters in the diffusion of innovation, members of the late majority A) have a fear of debt and use neighbors and friends as information sources. B) are skeptical and have below average social status. C) are deliberate and use many informal social contacts. D) are leaders in social settings and have a slightly above average education. E) are venturesome, higher educated, and use multiple information sources.
139) According to the concept of the diffusion of innovation, consumers who are skeptical and have below average social status are called A) innovators. B) early adopters. C) the early majority. D) the late majority. E) laggards.
140) In terms of the diffusion of innovation, laggards account for________Blank percent of product adopters.
Version 1
54
A) 2.5 B) 13.5 C) 16 D) 34 E) 50
141)
As product adopters in the diffusion of innovation, laggards A) have a fear of debt and use neighbors and friends as information sources. B) are skeptical and have below average social status. C) are deliberate and use many informal social contacts. D) are leaders in social settings and have a slightly above average education. E) are venturesome, higher educated, and use multiple information sources.
142) According to the concept of the diffusion of innovation, consumers who have a fear of debt and depend on neighbors and friends as their information sources are called A) innovators. B) early adopters. C) the early majority. D) the late majority. E) laggards.
143)
All of these are barriers to the adoption of new productsexcept which?
Version 1
55
A) risk B) regulatory C) psychological D) usage E) value
144) There are several reasons a consumer might be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a usage barrier, which occurs when A) there is no incentive to change. B) there are physical, economic, or social risks. C) there are cultural differences. D) the financial commitment is too great. E) the product is not compatible with existing habits.
145) If a customer is reluctant to try a new product because he’d have to change his normal everyday behaviors, the product is facing a________Blank barrier. A) usage B) risk C) value D) financial E) psychological
146) Which quote from a new-product adopter would signal the need for a firm to counteract a usage barrier?
Version 1
56
A) “It looks delicious but it might make me fat.” B) “What if I can’t make the monthly payments?” C) “I don’t want to use this if it means it will take me longer to get ready in the morning.” D) “Big deal, the only difference is the shape of the package.” E) “Sure I’ll try it; why not!”
147) A new exercise video contends that with one day of fasting and a one-hour period of intense cardiovascular exercise, the average individual can lose five pounds a week and be in peak health within six months of starting the program.________Blank barriers could doom the new product to failure because the product’s claims are not consistent with how consumers really behave. A) Psychological B) Social C) Physical D) Risk E) Usage
148) Several factors explain why a consumer would be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a value barrier, which occurs when A) there are physical, economic, or social risks. B) there are cultural differences. C) the financial commitment is too great. D) there is no incentive to change. E) the product is not consistent with existing habits.
149) Which quote from a new product adopter would signal the need for a firm to counteract a value barrier? Version 1
57
A) “But it might make me drowsy.” B) “What if I can’t make the monthly payments?” C) “I don’t want to try this if it means I have to swallow it with milk.” D) “I really don’t see how it is better than the system I already have.” E) “My brother will tease me relentlessly if I buy that.”
150) Imagine that Post Foods introduces a cereal bar—Trail Mix Crunch—just like those Kellogg’s and General Mills already have on the market. Post has decided to promote the bars using ads without coupons and to price the bars at about the same price as these other brands. Post Trail Mix Crunch cereal bars will also be distributed to the same stores as the products from Kellogg’s and General Mills. Which barrier to new-product adoption will most likely prevent the Post Trail Mix Crunch cereal bars from being a successful product? A) value barrier B) psychological barrier C) risk barrier D) usage barrier E) social barrier
151) If a customer is reluctant to try a new product because she’s afraid it might make her ill, the product is most likely facing________Blank barrier. A) a usage B) a risk C) a value D) an emotional E) a psychological
Version 1
58
152) There are several reasons a consumer would be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a risk barrier, which occurs when A) there is no incentive to change. B) there are physical, economic, or social fears. C) there are cultural differences. D) the financial commitment is too great. E) the product is not consistent with existing habits.
153) Which quote from a new-product adopter would signal the need for a firm to counteract a risk barrier? A) “It is against my religion.” B) “What if my wife hates it?” C) “I don’t want to try this if it means I have to swallow it with milk.” D) “Big deal, the only difference is the shape of the package.” E) “Sure I’ll try it; why not!”
154) There are several reasons a consumer would be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a psychological barrier, which occurs when A) there is no incentive to change. B) there are physical, economic, or social risks. C) there are cultural differences or image problems. D) the financial commitment is too great. E) the product is not consistent with existing habits.
Version 1
59
155) Which quote from a new-product adopter would signal the need for a firm to counteract a psychological barrier? A) “I feel self-conscious wearing this.” B) “What if I can’t make the monthly payments?” C) “I don’t want to try this if it means I have to swallow it with milk.” D) “It looks just like the old version.” E) “Sure I’ll try it; why not!”
156) All of these marketing actions can be used by a firm to counteract barriers to product adoptionexcept which? A) offering money-back guarantees B) targeting niche consumers C) conducting demonstrations D) offering free samples E) providing extensive usage instructions
157) Warranties, money-back guarantees, extensive usage instructions, demonstrations, and free samples are all ways in which companies attempt to________Blank new product adoption. A) accelerate satisfaction with B) stabilize at maturity any C) minimize growth in competition during D) overcome barriers to E) prevent the precipitous decline of
158) Manufacturers of all-electric-powered automobiles provide low-cost leasing options in part to
Version 1
60
A) increase profits during the maturity stage of a product’s life cycle. B) convince laggards to try a new product. C) recoup research and development costs. D) influence the product life cycle of fashion products. E) attempt to overcome barriers to adoption.
159)
One of the most popular means to gain consumer trial is through A) demonstrations. B) free samples. C) press releases. D) celebrity endorsements. E) product diffusion.
160) A manufacturer of a new sparkling water arranges to give free samples of the product at all Costco stores to A) stimulate laggard usage of the product. B) inhibit the innovation diffusion process. C) encourage product trial and adoption. D) erect product adoption barriers against its competitors. E) circumvent the typical adoption cycle.
161)
A product manager is sometimes called a
Version 1
61
A) chief marketing officer (CMO). B) brand manager. C) marketing manager. D) category manager. E) sales manager.
162) Consumer goods firms such as General Mills and PepsiCo as well as technology companies such as Intel and Hewlett-Packard employ a product manager to manage A) all of an organization’s product items or brands. B) all of an organization’s product classes. C) all of an organization’s new products through the initial stages of their life cycles. D) all products or brands that require close fiscal scrutiny. E) a close-knit family of products or brands.
163)
All of these are responsibilities of a product or brand managerexcept which?
A) engaging in extensive data analysis related to their products and brands B) developing new products C) managing existing products through the stages of their life cycles D) developing and implementing strategies at the corporate level E) developing and executing a marketing program described in an annual marketing plan for the product line
164) Product managers often use two special measures to help identify strong and weak market segments in order to provide direction for marketing efforts. One of these is the CDI, or
Version 1
62
A) category development index. B) consumer development index. C) competitive development index. D) channel development index. E) customization development index.
165) Product managers often use two special measures to help identify strong and weak market segments in order to provide direction for marketing efforts. One of these is the BDI, or A) business development index. B) brand development index. C) business-portfolio development index. D) buyer development index. E) benchmark development index.
166) Product managers often use two special measures to help identify strong and weak market segments in order to provide direction for marketing efforts. The two measures are the CDI and the BDI, which stand for A) comprehensive demographic inventory and brand designation information. B) consumer demographic index and buyer demographic inventory. C) category development index and brand development index. D) consumer development index and brand development inventory. E) category development index and buyer development inventory.
167) If a firm’s marketing dashboard displays a CDI of 120 for a consumer packaged good like Hawaiian Punch, this indicates which of these?
Version 1
63
A) a weak brand position in a segment B) a strong brand position in a segment C) above-average product category purchases by a market segment D) below-average product category purchases by a market segment E) There is not enough information to make any conclusions.
168) If a firm’s marketing dashboard displays a CDI of 80 for a consumer packaged good like Hawaiian Punch, this indicates which of these? A) a weak brand position in a segment B) a strong brand position in a segment C) above-average product category purchases by a market segment D) below-average product category purchases by a market segment E) There is not enough information to make any conclusions.
169) If a firm’s marketing dashboard displays a BDI of 120 for a consumer packaged good like Hawaiian Punch, this indicates which of these? A) a weak brand position in a segment B) a strong brand position in a segment C) above-average product category purchases by a market segment D) below-average product category purchases by a market segment E) There is not enough information to make any conclusions.
170) If a firm’s marketing dashboard displays a BDI of 80 for a consumer packaged good like Hawaiian Punch, this indicates which of these?
Version 1
64
A) a weak brand position in a segment B) a strong brand position in a segment C) above-average product category purchases by a market segment D) below-average product category purchases by a market segment E) There is not enough information to make any conclusions.
171)
The formula________Blank is used to calculate CDI.
A) (Percent of the total U.S. population in a market segment ÷ Percent of a brand’s total U.S. sales in a market segment) × 100 B) (Percent of a product category’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 C) (Percent of a brand’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 D) (Percent of the total U.S. population in a market segment ÷ Percent of a product category’s total U.S. sales in a market segment) × 100 E) of the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
172)
The formula________Blank is used to calculate BDI.
A) (Percent of the total U.S. population in a market segment ÷ Percent of a brand’s total U.S. sales in a market segment) × 100 B) (Percent of a product category’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 C) (Percent of a brand’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 D) (Percent of the total U.S. population in a market segment ÷ Percent of a product category’s total U.S. sales in a market segment) × 100 E) of the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
Version 1
65
173)
As shown in the CDI/BDI Marketing Dashboard, a BDI of 30 is determined by
A) finding the percent of the U.S. population in the “Households without children” segment divided by the percent of Hawaiian Punch sold to households without children in the U.S. multiplied by 100. B) subtracting the total number of non-users from the total number of users of Hawaiian Punch sold to households without children. C) finding the difference in total sales of Hawaiian Punch between households who have children and those who do not. D) finding the percent of Hawaiian Punch sold to U.S. households without children divided by the percent of the U.S. population in the “Households without children” segment multiplied by 100. E) using the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
Version 1
66
174) If you were a marketing manager and were presented with the information in the CDI/BDI Marketing Dashboard, you would determine that the ________Blank segment has the most opportunity for increasing Hawaiian Punch sales.
A) households without children B) households with children 13 to 18 years old C) households with children 6 years old or under D) households with children 7 to 12 years old E) According to the BDI, all segments show positive numbers, so there is opportunity for growth in every segment.
Version 1
67
175)
In the CDI/BDI Marketing Dashboard, which segment consumes the most fruit drinks?
A) households without children B) households with children 13 to 18 years old C) households with children 6 years old or under D) households with children 7 to 12 years old E) Because the BDI and CDI show inconsistencies in their measurements, especially in the segment of children under the age of six, it is impossible to answer the question.
Version 1
68
176) In the CDI/BDI Marketing Dashboard, which segment consumes the least amount of Hawaiian Punch?
A) households without children B) households with children 13 to 18 years old C) households with children 6 years old or under D) households with children 7 to 12 years old E) Because the BDI and CDI show inconsistencies in their measurements, especially in the segment of children under the age of six, it is impossible to answer the question.
177) A marketing strategy that alters a product’s characteristic, such as its quality, performance, or appearance, to increase its value and sales to customers is referred to as
Version 1
69
A) market modification. B) product modification. C) product repositioning. D) market-product synergy. E) product management.
178)
Product modification refers to a marketing strategy that
A) alters a product’s characteristic, such as its quality, performance, or appearance, to increase its value to customers and to increase sales. B) manages a product’s life cycle to increase its use among existing customers, create new use situations, or find new customers. C) tries to find new customers and convince users who abandoned it to purchase again. D) drops the lowest producing market segment and replaces it with an entirely new one. E) combines the lowest producing market segment into others to achieve marketing economies of scale.
179)
Which of these is a product modification strategy? A) creating new advertising for a product B) improving a product’s quality C) finding a new target market for a product D) creating a new use situation for a product E) altering a product’s distribution
180)
All of these are product modification strategiesexcept which?
Version 1
70
A) product bundling B) improving a product’s quality C) changing a product’s appearance D) creating a new use situation E) altering a product’s performance
181) When Proctor & Gamble revamped Pantene shampoo and conditioner with a new vitamin formula and relaunched the brand with a multimillion-dollar advertising and promotion campaign, what strategy did it use to manage the product through its life cycle? A) market modification B) product redevelopment C) market-product synergy D) product positioning E) product modification
182) Forty years ago, the Mississippi Gulf Coast was a nice place to vacation with a white sandy beach, golfing opportunities, resort hotels, and good seafood restaurants. But with the addition of casinos, the Gulf Coast improved its odds of being a tourist destination for more travelers. This is an example of a________Blank strategy. A) market-product grid B) diversification C) product modification D) market modification E) product repositioning
Version 1
71
183) The McDonald’s Corporation announced that it will begin phasing out the use of eggs from hens housed in cages. The company uses about two billion eggs annually, or a little more than 4 percent of the eggs produced in the United States. This change in McDonald’s eggcontaining products to appeal to healthy eating habits is a________Blank strategy. A) product modification B) market-product grid C) diversification D) market modification E) product class extension
184) DiGiorno rising crust pizza has been available in the freezer sections of supermarkets for quite a while. The brand’s introduction of a DiGiorno cheese-stuffed crust to its line of pizzas is an example of A) a market-product grid. B) diversification. C) market modification. D) product class extension. E) product modification.
185)
The sale of two or more separate products in one package is referred to as A) a BOGO deal. B) product modification. C) product repositioning. D) product bundling. E) product differentiation.
Version 1
72
186) When Wendy’s wants to increase the value of its Dave’s Hot ‘N Juicy cheeseburger to its customers, it combines complementary items (French fries and a soft drink) to expedite the ordering process and provide a complete meal. This product modification approach is called A) a BOGO deal. B) product modification. C) product repositioning. D) product differentiation. E) product bundling.
187) If Procter & Gamble (P&G) were to package a Gillette Fusion ProGlide Razor with its Gillette Fusion Hydragel, P&G would be engaged in A) a BOGO deal. B) product modification. C) product bundling. D) product repositioning. E) product differentiation.
188) A strategy for managing a product’s life cycle that attempts to find new customers, increase a product’s use among existing customers, or create new use situations is referred to as A) market modification. B) product modification. C) product repositioning. D) product extension. E) diversification.
189)
Market modification refers to a marketing strategy that
Version 1
73
A) alters a product’s characteristic, such as its quality, performance, or appearance, to increase its value to customers and to increase sales. B) manages a product’s life cycle by finding new customers, increasing a product’s use among existing customers, or creating new use situations. C) tries to find new customers and convince users who abandoned the product to purchase again. D) drops the lowest producing market segment and replaces it with an entirely new one. E) combines the two lowest producing market segments to achieve marketing economies of scale.
190)
All of these are market modification strategiesexcept which? A) creating a new use situation B) finding new customers C) changing a product’s appearance D) targeting new market segments E) increasing a product’s use among existing customers
191) When Coca-Cola promoted Coke as a morning beverage for those consumers who don’t drink coffee, it used a________Blank strategy. A) product modification B) brand modification C) market-product extension D) diversification E) market modification
192) Known for its popular line of construction toys for boys, LEGO Group introduced a product line for young girls called LEGO Friends. This is an example of which market modification strategy? Version 1
74
A) finding new users B) creating new use situations C) increasing a product’s use by existing customers D) modifying the product E) reacting to competitors’ positions
193) Major American car manufacturers are offering buying incentives to newly graduated college students who traditionally have little or no credit. Car manufacturers are using which market modification strategy? A) finding new users B) creating new use situations C) increasing a product’s use by existing customers D) modifying the product E) reacting to competitors’ positions
194) Starbucks sometimes offers a promotion known as the “treat receipt.” Patrons purchase a drink of their choice in the morning and then will receive a receipt to turn in after 2:00 p.m. that same day. With the receipt the customer can purchase a discounted grande iced beverage. Which is the most likely market modification strategy for Starbucks here? A) finding new users B) creating new use situations C) increasing a product’s use by existing customers D) modifying the product E) reacting to competitors’ positions
195) Mott’s applesauce promotes itself as a low-fat alternative to cooking oil for baked goods. Mott’s is
Version 1
75
A) finding new users through a product modification strategy. B) increasing use by existing customers through a product modification strategy. C) modifying the product characteristics. D) creating new use situations through a market modification strategy. E) demarketing the product.
196) Changing the place a product occupies in a consumer’s mind relative to competitive products is referred to as A) market modification. B) product modification. C) product repositioning. D) product positioning. E) perceptual mapping.
197)
All of these are factors triggering the need for product repositioningexcept which? A) creating a new use situation B) reaching a new market C) catching a rising trend D) changing the value offered E) reacting to a competitor’s position
198) Sealy, the self-proclaimed largest manufacturer of mattresses in the United States, recently set out to redefine its place in the bedrooms of America. No longer was it going to be known as simply a mattress company. Now the name Sealy was going to be known as the world’s leading “sleep wellness provider.” This is an example of
Version 1
76
A) reverse marketing. B) demarketing. C) repositioning. D) resegmenting. E) positioning.
199) Kellogg’s Frosted Flakes, a ready-to-eat breakfast cereal, has been perceived as a cereal for children. Tony the Tiger, a cartoon character, extolled Frosted Flakes, and advertisements depicted children enjoying the product with Tony. In response to declining sales of Frosted Flakes, the cereal maker has adopted a new series of advertisements that show adults admitting that they enjoy Frosted Flakes, too. Kellogg’s is attempting to A) develop a perceptual map for Frosted Flakes. B) reposition Frosted Flakes. C) complete the Frosted Flakes product life cycle. D) introduce a new product line extension for Frosted Flakes. E) harvest Frosted Flakes.
200) New Balance, Inc., successfully repositioned its athletic shoes to focus on fit, durability, and comfort rather than going head-on against Nike and Adidas on professional sports and fashion, respectively. This product repositioning strategy was designed to A) react to a competitor’s position. B) reach a new target market segment. C) catch a rising trend. D) change the value offered to its customers. E) accommodate its target audience preference for comfortable sneakers.
Version 1
77
201) Johnson & Johnson effectively repositioned St. Joseph Aspirin from a product for infants to an adult low-strength aspirin to reduce the risk of heart attacks or strokes. This is an example of a product repositioning by A) reacting to a competitor’s position. B) reaching a new market. C) catching a rising trend. D) changing the value offered. E) product modification.
202) Procter & Gamble repositioned its Old Spice antiperspirant brand from a deodorant your grandfather might use to a strong, hip antiperspirant through commercials that showed the target market of 18- to 30-year-old men advocating its use. P&G used this product repositioning strategy with its Old Spice brand antiperspirant to A) react to a competitor’s position. B) catch a rising trend. C) change the value offered. D) diversify its product portfolio. E) reach a new market.
203) An aging baby boomer population has led to increased interest in developing and marketing products to satisfy the needs of this large market. As a result, moisturizing lotions and creams such as Oil of Olay are now repositioned as “age-defying” products. This is an example of which product repositioning action? A) reaching a new market B) reacting to a competitor’s position C) trading up D) changing the value offered E) product modification
Version 1
78
204) Pretzels were first introduced as a salty snack. Later, the product was repositioned as a low-fat snack in order to A) respond to a competitor’s head-to-head positioning strategy. B) reach a new market. C) catch a rising trend. D) change the value offered. E) change its target audience.
205)
Trading up refers to
A) adding product features but reducing the price. B) changing the distribution channel members to higher-service-quality retailers. C) adding value to the product (or line) through additional features or higher-quality materials. D) reallocating marketing resources from a poor-performing target market to one that demonstrates greater potential for future growth. E) offering consumers a discount when they purchase a more expensive version of the product.
206) Adding value to the product (or line) through additional features or higher-quality materials is referred to as A) trading up. B) trading down. C) product enhancement. D) product extension. E) quality infusement.
Version 1
79
207) Ralston Purina advertises with the following slogan: “Your Pet, Our Passion—Premium Pet Food by Purina.” The firm now offers high-quality, super-premium cat and dog food based on formulations that promote “life-stage nutrition.” This line is an example of A) rebranding. B) trading up. C) trading down. D) trend setting. E) product branding.
208) Reducing the number of features, qualities, or price when repositioning a product is referred to as A) product paring. B) down trading. C) product deflation. D) trading down. E) product simplification.
209)
Trading down refers to________Blank when repositioning a product.
A) reducing the number of features, qualities, or price B) reducing the amount of product carried as inventory C) reducing the number of product items in a product line D) redirecting marketing resources from a “cash cow” target market to one that is not performing as well in the hopes of increasing sales and profits E) encouraging consumers through the use of coupons and deals to purchase a firm’s lower-priced products
Version 1
80
210) Reducing the package content without changing package size while maintaining or increasing the package price is referred to as A) outsourcing. B) trading up. C) contraction. D) upsizing. E) shrinkflation.
211)
Shrinkflation reduces the A) quality of materials without changing the price. B) product’s price along with the quality of the materials. C) package content without changing its size while maintaining or increasing the package
price. D) number of product features. E) number of product items in a product line.
212) Georgia-Pacific reduced the content of its Brawny paper towel six-roll pack by 20 percent without lowering the price. Here the company used________Blank strategy. A) an outsourcing B) a trading up C) a contraction D) a shrinkflation E) a product modification
213) Consumer advocates believe the practice of shrinkflation by consumer products firms has resulted in
Version 1
81
A) lower product prices for consumers because of lower labor, raw material, and packaging costs. B) a greener environment due to the reduction in packaging, thereby reducing the amount of waste entering landfills. C) fewer product choices for consumers that led to rising prices. D) low prices in response to the psychological barriers consumers have for change. E) a subtle, deceptive, yet legal practice of disguising a price increase.
214) Which of these barriers does shrinkflation try to combat when consumers may either adopt a new product or repurchase an existing one? A) risk barriers B) usage barriers C) feature bloat barriers D) psychological barriers E) value barriers
215) An organization’s use of a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors is referred to as A) a label. B) branding. C) a trademark. D) a patent. E) a trade name.
216)
Branding is
Version 1
82
A) the licensing of a name, phrase, design, symbol, or combination of these for a period of 17 years, at which time a firm may renew its intellectual property rights to them. B) the value added to the product from the additional features given to a product beyond its functional attributes. C) the identification of an organization’s products based upon individual SKUs. D) an organization’s use of a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors. E) the establishment of a commercial, legal name under which a company does business.
217) Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller’s products or services is referred to as a A) brand name. B) copyright. C) trade name. D) trademark. E) label.
218)
A brand name is
A) a product’s identifier that only can be spoken. B) a product’s identifier that consists of only the symbol or design that cannot be spoken. C) any word, device (design, sound, shape or color), or combination of these used to distinguish a seller’s products or services. D) the commercial, legal name under which a company does business. E) the identification of an organization’s products based upon individual SKUs.
219) The stylized blue and white waves that appear in an oval shape on every package of Ocean Spray brand products is an example of a
Version 1
83
A) copyright. B) operational identification. C) patent. D) brand name. E) label.
220)
The swoosh that appears on every Nike product is an example of a A) copyright. B) trade identification. C) patent. D) brand name. E) label.
221)
Twitter uses a stylized blue or white bird with no text as its A) copyright. B) trade name. C) patent. D) logo. E) label.
222)
The white apple used by Apple in advertising and on its products is an example of a A) copyright. B) trade name. C) patent. D) logotype. E) label.
Version 1
84
223)
A trademark is
A) any word, device (design, sound, shape or color), or combination of these used to distinguish a seller’s products or services. B) the part of a brand that can be spoken. C) the part of a brand that is a symbol or design and cannot be vocalized. D) the commercial, legal name under which a company does business. E) the identification that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.
224) The identification that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it, is referred to as a A) brand name. B) copyright. C) trademark. D) label. E) trade name.
225)
Which agency registers the trademarks of a firm? A) U.S. Chamber of Commerce Trademark and Servicemark Office B) U.S. Department of Commerce Trademark Registry C) United Nations Global Trademark Clearinghouse D) U.S. Federal Trade Commission—Trademark Division E) U.S. Patent and Trademark Office
226)
Which federal law protects the trademarks of a firm?
Version 1
85
A) Sherman Act B) Lanham Act C) Copyright Act D) Clayton Act E) Robinson-Patman Act
227)
The primary purpose of a trademark is to A) legally protect a product’s brand name or trade name and prevent others from using it. B) allow a company to use the brand name on multiple products in its product line. C) legally identify the product as having met government standards for its product item. D) help consumers identify a genuine product from a counterfeit product. E) capitalize on the brand equity a consumer associates with the symbol, sound, or image.
228)
For consumers, the primary benefit of branding is that
A) products tend to be higher in quality. B) it helps them to be more efficient shoppers. C) branded items are more readily available in retail outlets. D) branded items are usually more expensive because of the cost to register them with the Federal Trade Commission (FTC). E) they are often rewarded with buyer loyalty incentives.
229)
One of the primary benefits of branding for consumers is that branding
Version 1
86
A) identifies products of highest quality. B) guarantees lowest prices. C) makes decision making easier for consumers. D) indicates that products have more or newer features. E) makes advertising and other promotion unnecessary.
230)
The U.S. Patent and Trademark Office website allows you to A) see if a brand or trade name has been registered. B) view the list of brand franchises available for purchase. C) view the status of trademark infringement lawsuits. D) copyright a book without having to use a lawyer. E) buy unused trademarks.
231)
A set of human characteristics associated with a brand name is referred to as A) a symbolic brand. B) a brand personality. C) a brand psychographic. D) brand personification. E) product personification.
232)
Brand personality is
Version 1
87
A) the personification of a brand in terms of its benefits. B) a brand name that cannot be spoken. C) a set of human characteristics associated with a brand name. D) the added value a brand name gives to a product beyond the functional benefits provided. E) the embedded association between a company spokesman or paid celebrity and the product itself.
233) When consumers think of Harley-Davidson, the image is of a masculine nonconformist. With Vespa motor scooters, the image is of a brainy environmentalist. Both Vespa and HarleyDavidson A) have brand personalities. B) avoid brand subcultures. C) are logotypes. D) use co-branding. E) use product personification.
234) The added value a brand name gives to a product beyond the functional benefits provided is referred to as A) brand cachet. B) brand net worth. C) brand equity. D) brand benefit. E) brand enhancement.
235)
Brand equity is
Version 1
88
A) the total of all resources invested to create a name, phrase, design, symbol, or combination of these to identify a firm’s products and distinguish them from those of its competitors. B) the difference between the revenues generated and the costs incurred to sell a product. C) increasing the content contained within the brand’s package without changing its size or increasing its price. D) the net present value of the royalties the firm receives as a result of licensing its brand to other firms to manufacture and/or market. E) the added value a brand name gives to a product beyond the functional benefits provided.
236) and
Brand equity is valuable to an organization because it creates a competitive advantage
A) it guarantees the lowest prices. B) decision making becomes easier for consumers. C) there is no need for coupons, discounts, or other customer incentives. D) customers are often willing to pay a higher price. E) new market segments are easily added to the market-product grid.
237)
Which of these is the first of four steps in building brand equity? A) developing positive brand awareness B) lowering the price of products C) easing consumers’ decision making D) incorporating higher value in products E) creating market modification
238)
Which of these is one of the steps in the sequential process of building brand equity?
Version 1
89
A) develop positive brand awareness B) establish a brand’s meaning in the minds of consumers C) elicit the proper consumer responses to a brand’s identity and meaning D) create a consumer-brand connection E) reward loyal customer behavior
239)
The fourth and final step in the sequential process of building brand equity is to A) develop positive brand awareness. B) establish a brand’s meaning in the minds of consumers. C) elicit the proper consumer responses to a brands identity and meaning. D) create an intense, active, and loyal consumer-brand connection. E) reward loyal customer behavior.
240) Which step in the sequential process of building the brand equity pyramid is most difficult to achieve? A) easing consumers’ decision making B) forming a brand personality C) creating a consumer-brand connection D) rewarding loyal customer behavior E) developing brand licensing criteria
Version 1
90
241) Figure 11-6 shows the sequential process of building brand equity. Segment A represents the first step, which is to
A) create a consumer-brand connection. B) develop positive brand awareness. C) reward loyal customer behavior. D) establish a brand’s meaning in the minds of consumers. E) elicit the proper consumer responses to a brand’s identity and meaning.
Version 1
91
242) Figure 11-6 shows the sequential process of building brand equity. The second step is to establish a brand’s meaning in the minds of consumers. This step consists of two dimensions, B and C, which represent
A) brand performance and brand imagery. B) brand identity and brand emotion. C) consumer judgments and consumer feelings. D) brand awareness and consumer-brand connection. E) consumer feelings and brand imagery.
Version 1
92
243) Figure 11-6 shows the sequential process of building brand equity. The third step is to elicit the proper consumer responses to a brand’s identity and meaning. This step consists of two dimensions, D and E, which represent
A) brand identity and brand emotion. B) brand performance and brand imagery. C) consumer judgments and consumer feelings. D) brand awareness and consumer-brand connection. E) consumer feelings and brand imagery.
Version 1
93
244) Figure 11-6 shows the sequential process of building brand equity. F represents the fourth and last step, which is to
A) elicit the proper consumer responses to a brand’s identity and meaning. B) develop positive brand awareness. C) reward loyal customer behavior. D) establish a brand’s meaning in the minds of consumers. E) create a consumer-brand connection.
245) Brand equity provides a financial advantage for a brand’s owner because successful, established brand names have an economic value in the sense that they are A) tangible assets. B) intangible assets. C) durable goods. D) nondurable goods. E) immaterial equity.
Version 1
94
246) A contractual agreement whereby one company (licensor) allows its brand name or trademark to be used with products or services offered by another company (licensee) for a royalty or fee is referred to as A) co-branding. B) generic branding. C) reseller licensing. D) mixed branding. E) brand licensing.
247)
Brand licensing is
A) the registration fee paid by a manufacturer to states, provinces, or countries in order to sell its products there. B) a branding strategy in which the producer dictates the brand name to retailers for the products sold to their respective markets. C) a branding strategy in which a company uses one name for all of its products. D) a contractual agreement whereby a company allows another firm to use its brand name or trademark with its products or services for a royalty or fee. E) a branding strategy in which manufacturers produce products but sell them under the brand name of a wholesaler or retailer.
248) Mattel has a contractual agreement to let Colgate use the Barbie name and image on kids’ toothpaste and toothbrushes. Colgate pays Mattel a fee for the use of the Barbie name and image. This is an example of
Version 1
95
A) brand licensing. B) co-branding. C) generic branding. D) reseller licensing. E) mixed branding.
249) Kemps makes Life Savers Real Fruit Sherbet (with the flavors of a favorite childhood candy). Kemps pays Wrigley, the owner of the Life Savers brand name, a fee to market this product. This is an example of A) generic branding. B) reseller licensing. C) mixed branding. D) brand licensing. E) co-branding.
250) Ralph Lauren has a long-term________Blank agreement with Luxottica Group for the design, production, and worldwide distribution of prescription frames and sunglasses under the Ralph Lauren brand. Ralph Lauren is a leader in the design, marketing, and distribution of premium lifestyle products, while Luxottica is the global leader in luxury eyewear. A) brand licensing B) generic branding C) multiproduct branding licensing D) mixed branding E) co-branding
251)
A good brand name has several characteristics, including that it should
Version 1
96
A) avoid the use of a humorous connotation. B) have no legal or regulatory restrictions. C) suggest but not copy entirely the leading brand. D) be patented. E) be easy to spell and pronounce.
252)
The Make a Wish Foundation brand name is especially effective because it A) is easy to spell and pronounce. B) is not easily imitated. C) suggests the service’s benefits. D) demands a hint of moral obligation. E) is devoid of emotion.
253) Which product has the brand name that best suggests its benefits, one of six criteria for selecting a good brand name? A) Spam canned meat B) Ken’s salad dressing C) Formula 409 cleaner D) Match Light charcoal E) Bayer aspirin
254) In 1984, IBM launched the “PCjr,” its first low-priced, educational/home personal computer. Sales were poor because IBM most likely violated which criterion for picking a good brand name?
Version 1
97
A) The name was not distinctive nor memorable. B) The name did not fit the company image. C) The name had too many legal restrictions. D) The name was too confusing with both capital and lowercase letters. E) The name failed to suggest the product benefits.
255)
Kellogg’s changed the name of its Heartwise cereal to Fiberwise most likely to
A) respond to a changing public interest from heart to intestinal health issues. B) convey a stronger product image, since “heart” implied sentimentality and “fiber” implied strength. C) comply with U.S. Food and Drug Administration guidelines on the use of the word “heart” in food brand names. D) avoid a lawsuit by the maker of HeartPro Organic Cereal because it claimed the names and benefits were too similar. E) complement its new line of breakfast fiber bars.
256) 7UP is a lemon-lime carbonated soft drink that has been very successful in the United States. Dr Pepper/Seven Up, Inc., the maker of 7UP, uses a family branding strategy to market 7UP worldwide. In China, sales have suffered since the brand name means “death through drinking.” Which criterion for picking a good band name did Dr Pepper/Seven Up, Inc. violate when it chose to use a family branding strategy to market 7UP in China? A) The name should have favorable phonetic and semantic associations in other languages. B) The name should be simple. C) The name should have no governmental restrictions. D) The name should suggest the product’s benefits. E) The name should not be difficult to spell or pronounce.
Version 1
98
257) IKEA sells a portable workbench called the Fahrtfull. The product has many positive features, and in German or Swedish markets, the name describes the product’s features well (fahrt meaning travel). This brand name in the United States, however, may not be as effective due to A) disappointment when the product fails to perform as the brand name implies. B) the poor attempt at humor, which makes consumers question product quality. C) governmental restrictions on brand names that read or sound like bodily functions. D) its unfavorable phonetic and semantic associations in English. E) difficulty in symbolically showing “fahrtfull” in advertising.
258) Which of these is one of the four alternatives for branding strategy that companies can employ? A) retailer branding B) intermediary branding C) brand licensing D) multiproduct branding E) promotional branding
259) Companies can choose from several different branding strategies. Kohl’s, with its own Croft & Barrow, SONOMA Goods for Life, and Apt. 9 brands that offer men’s and women’s apparel and footwear, accessories and home goods in its stores, is using a________Blank strategy. A) retailer branding B) multiproduct branding C) multibranding D) private branding E) mixed branding
Version 1
99
260) Companies can employ several different branding strategies. In Figure 11-7, Box A represents a ________Blank strategy.
A) retailer branding B) multiproduct branding C) multibranding D) private branding E) mixed branding
261) Companies can employ several different branding strategies. In Figure 11-7, B represents a ________Blank strategy.
Version 1
100
A) retailer branding B) multiproduct branding C) multibranding D) private branding E) mixed branding
262) Companies can employ several different branding strategies. In Figure 11-7, C represents a ________Blank strategy.
A) retailer branding B) multiproduct branding C) multibranding D) private branding E) mixed branding
Version 1
101
263) Companies can employ several different branding strategies. In Figure 11-7, D represents a ________Blank strategy.
A) retailer branding B) multiproduct branding C) multibranding D) private branding E) mixed branding
264) A branding strategy in which a company uses one name for all its products in a product class is referred to as A) global branding. B) public branding. C) multibranding. D) brand licensing. E) multiproduct branding.
265)
Multiproduct branding is a branding strategy
Version 1
102
A) that involves giving each product a distinct name when each brand is intended for a different market segment. B) that uses different brand names for the same product across multiple countries. C) in which a company uses one name for all its products in a product class. D) in which manufacturers produce products but sell them under the brand name of a wholesaler or retailer. E) in which a company uses a contractual agreement to allow someone else to use its brand name for a fee.
266)
Which of these is a multiproduct branding strategy? A) mixed branding B) product line extensions C) multibranding D) brand licensing E) private branding
267)
Another name for multiproduct branding is A) family branding. B) mixed branding. C) uniform branding. D) co-branding. E) multibranding.
268) The Toro Co. makes Toro snowblowers, Toro lawn mowers, Toro garden hoses, and Toro sprinkler systems. The Toro Co. uses a________Blank strategy.
Version 1
103
A) multibranding B) family branding C) co-branding D) uniform branding E) mixed branding
269) The Samsung brand includes the familiar Samsung Electronics, but also Samsung Heavy Industries, Samsung Engineering, Samsung C&T (construction), and Samsung Life Insurance. This company uses A) multibranding. B) uniform branding. C) co-branding. D) corporate branding. E) agent licensing.
270)
When a company uses a product line extension, it
A) markets a product under a new brand name so that consumers will view it as an entirely new product line. B) markets a new product with the current brand name to enter a new market segment in its product class. C) speeds up the movement of a product through its product life cycle. D) contracts with another firm to manufacture modified versions of the original products. E) applies the current brand name to enter a completely different product class.
271) When a company sells a new product with the current brand name to enter a new market segment in its product class, it is using a________Blank strategy.
Version 1
104
A) mixed branding B) brand extension C) co-branding D) family branding E) product line extension
272)
Which statement about product line extensions is most accurate?
A) A product line extension strategy typically leads to increased advertising costs. B) There are no risks associated with a product line extension strategy. C) When the Clorox Co. joins with Kroger supermarkets to advertise Clorox products in a local newspaper, it is engaged in a product line extension. D) A product line extension is a form of multiproduct branding. E) A product line extension is a form of multibranding.
273)
All of these are true about product line extensionsexcept which?
A) This strategy can result in lower advertising and promotion costs. B) A risk that comes with product line extensions is that sales of an extension may come at the expense of other items in the company’s product line. C) A product line extension raises the level of brand awareness. D) Line extensions work best when they provide incremental company revenue by taking sales away from competing brands. E) Product line extensions involve using a current brand name to enter a different product class.
274) Bayer Aspirin is sold in the original strength, in a safety-coated version, in an extrastrength version, and in a version designed especially for women. Bayer is using a________Blank strategy.
Version 1
105
A) product item expansion B) subbranding C) product line extension D) co-branding E) brand extension
275) Combining a corporate or family brand with a new brand to distinguish a part of its product line from others is referred to as A) subbranding. B) multibranding. C) mixed branding. D) private branding. E) family branding.
276)
Subbranding involves
A) having one firm manufacture a product and a second firm distribute it all under the same name. B) changing a brand name of a product line extension product by making it “New and Improved!” C) combining a corporate brand with a new brand to distinguish a part of its product line from others. D) creating a knockoff version of a product and changing the spelling of the name (“chikin” nuggets). E) using the same name for the original product and all subsequent product line and brand extensions.
277) Gatorade successfully used a________Blank strategy when it introduced a group of lower-calorie options called Gatorade G2.
Version 1
106
A) subbranding B) multibranding C) mixed branding D) generic branding E) family branding
278)
Nike has successfully used________Blank with its lines Air Jordan and Air Lebron. A) family branding B) subbranding C) multiproduct branding D) mixed branding E) generic branding
279)
Brand extension is the practice of
A) manufacturing a product under a new name that consumers will view as an entirely new product line. B) manufacturing a new product with the same brand name for a new market segment in the same product class. C) manufacturing accessory products for the base offering, such as Barbie clothes for Barbie dolls. D) licensing another firm to manufacture modified versions of the original product. E) applying the current brand name to enter a completely different product class.
280) A risk with________Blank is that too many uses for one brand name can dilute the meaning of a brand for consumers.
Version 1
107
A) brand extensions B) product line extensions C) cannibalization D) private branding E) mixed branding
281) Huggies is a well-known brand of diapers in the United States. Kimberly-Clark has successfully leveraged the strong Huggies brand image among mothers in its use of________Blank when it introduced a full line of Huggies baby and toddler toiletries. A) product line branding B) subbranding C) uniform branding D) mixed branding E) brand extensions
282) The practice of pairing two or more strong brands to facilitate the marketing of a joint product or service for their mutual benefit is referred to as A) multibranding. B) brand bundling. C) co-branding. D) mixed branding. E) reseller branding.
283)
Co-branding involves
Version 1
108
A) combining a corporate brand with a family brand. B) pairing two or more strong brands to facilitate the marketing of a joint product. C) using the same brand names for the same product in multiple countries. D) using the same name for the original product and for all subsequent product line extensions. E) using a current brand name to enter a different product class.
284) When General Mills teamed up with The Hershey Company to create a cereal called Reese’s Puffs (the Reese’s brand belongs to Hershey’s), the branding strategy is known as A) manufacturer branding. B) brand bundling. C) mixed branding. D) co-branding. E) multibranding.
285)
Multibranding refers to a branding strategy in which a firm
A) gives each product a distinct name as a method to appeal to various target markets. B) uses different brand names for the same product across multiple countries. C) uses one name for all its products in a product class, though each is intended for a different market segment. D) produces products but sells them under the brand name of a wholesaler or retailer. E) contractually, and for a fee, allows other firms to use its brand name, requiring that the product be made to its specifications.
286) A branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment is referred to as
Version 1
109
A) product differentiation branding. B) multibranding. C) mixed branding. D) segmentation branding. E) multiproduct branding.
287) Black & Decker uses a________Blank strategy to reach the do-it-yourself market with the Black & Decker brand name and the professional construction market with the DeWalt brand name. A) product differentiation branding B) multiproduct branding C) multibranding D) segmentation branding E) private branding
288) Mars, Inc., sells Snickers, Milky Way, Twix, Skittles, Dove, Starburst, M&Ms, and 3 Musketeers candy. This variety of brand names is typical of a________Blank strategy. A) co-branding B) multibranding C) multiproduct D) mixed brand E) private branding
289) Seiko makes watches. It markets its higher-quality watches under the Seiko or LaSalle brand names, and its lower-priced watches are sold under the Pulsar brand. Seiko uses a________Blank strategy.
Version 1
110
A) multibranding B) product differentiation branding C) multiproduct branding D) segmentation branding E) private branding
290) New product brands introduced as defensive moves to counteract and confront a firm’s competition are referred to as A) co-brands. B) private brands. C) fighting brands. D) brand extensions. E) subbrands.
291) Despite the success of its Pentium chips, Intel faced a major threat from AMD’s cheaper K6 chips, which were better placed to serve the emerging low-cost PC market. Intel wanted to protect the brand equity and price premium of its Pentium microprocessors, but it also wanted to avoid AMD gaining a foothold into the lower end of the market. So it created Celeron as a cheaper, less powerful version of its Pentium chips to serve this market. This is a notable example of a A) private brand. B) brand extension. C) subbrand. D) co-brand. E) fighting brand.
Version 1
111
292) Advertising and promotion costs tend to be higher with a________Blank strategy because the company must generate awareness among consumers and retailers for each new brand name without the benefit of any previous impressions. A) co-branding B) private branding C) multibranding D) multiproduct branding E) promotional branding
293)
Which statement about a multibranding strategy isfalse?
A) With a multibranding strategy, there is no risk that a product failure will affect other products in the line. B) Some large firms have found that the complexity and expense of implementing a multibranding strategy outweigh its benefits. C) With a multibranding strategy, each brand is unique to each market segment. D) A multibranding strategy is used when a firm produces products and sells them under the brand name of a wholesaler or retailer. E) Some multibrands are introduced to confront competitors’ brands.
294) A company uses________Blank when it manufactures products but sells them under the brand name of a wholesaler or retailer. A) manufacturer branding B) private branding C) generic branding D) co-branding E) brand licensing
295)
Private branding refers to a branding strategy in which a firm
Version 1
112
A) gives each product a distinct name when each brand is intended for a different market segment. B) uses different brand names for the same product across multiple countries. C) uses one name for all its products in a product class. D) produces products but sells them under the brand name of a wholesaler or retailer. E) contractually, and for a fee, allows other firms to use its brand name, requiring that the product be made to its specifications.
296)
Private branding is also referred to as private labeling or A) reseller branding. B) generic branding. C) multibranding. D) co-branding. E) multiproduct branding.
297) Many U.S. consumers purchase store brands like Kirkland at Costco because they provide a lower cost alternative to other brands. Companies selling these products to Costco use a________Blank strategy to distribute products under the Kirkland name. A) generic branding B) multibranding C) co-branding D) multiproduct branding E) private branding
298) Over 50 percent of the dollars spent in the United States on disposable cups and plates go toward the purchase of store brands of these products that are manufactured by others.________Blank has been very successful in this disposables category.
Version 1
113
A) Generic branding B) Multibranding C) Co-branding D) Multiproduct branding E) Private branding
299)
Mixed branding refers to a branding strategy in which a firm
A) gives each product a distinct name when each brand is intended for a different market segment. B) uses different brand names for the same product across multiple countries. C) uses one name for all its products in a product class. D) produces products but sell them under the brand name of a wholesaler or retailer. E) markets some products under its own name(s) and other products under the name of a reseller because the segment attracted to the reseller is different from its own market.
300) A branding strategy in which a firm markets some products under its own name(s) and other products under the name of a reseller because the segment attracted to the reseller is different from its own market is referred to as A) multibranding. B) generic branding. C) private branding. D) mixed branding. E) multiproduct branding.
301)
A manufacturer can successfully use mixed branding because
Version 1
114
A) it involves giving each product a distinct brand name. B) the segment attracted to the reseller product is different from its own targeted market segment. C) the company uses one name for all of its products for the sake of simplicity. D) it is easy to do. E) it produces lower profits for the reseller and higher profits for the manufacturer.
302) Any container in which a product is offered for sale and on which information is communicated is referred to as A) a point-of-purchase display. B) merchandising. C) packaging. D) a label. E) a product bundle.
303)
Packaging is
A) any box, bottle, jar, can, carton, or bag that can be used for transporting services. B) any container in which a product is offered for sale and on which label information is communicated. C) that part of a product that is not recyclable. D) a storage vessel for a perishable product. E) any container used in the preservation of ideas.
304) An integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients is referred to as a(n)
Version 1
115
A) SKU. B) product item. C) UPC. D) RFID. E) label.
305)
Which statement regarding labels is most accurate?
A) Although labels are can carry useful information, the less information communicated, the better. B) The brand logo or brand name should always be the largest image on a label. C) Labels can be very expensive, and they are important because they often are the first contact the consumer has with the product. D) The best labels to use on food products are those that can be easily removed to promote recycling of the package. E) One penny for every dollar consumers spend on products goes toward packaging and labeling costs.
306) Customer value can assume numerous forms. For Pez Candy, Inc., customer value manifests itself in the form of A) an upbeat jingle. B) character candy dispensers. C) a stylish logotype. D) sour taste. E) sugar coating.
307)
Pez was originally sold in Europe as________Blank in plain headless dispensers.
Version 1
116
A) chewing gum B) a breath mint C) an antacid D) a pain reliever E) candy
308)
The central element of the marketing strategy for Pez Candy, Inc., is the A) price. B) breath mint. C) availability. D) dispenser. E) fulfillment.
309) The three main benefits packaging provides to manufacturers, retailers, and consumers include which of these? A) personal B) perceptual C) financial D) societal E) aesthetic
310) Directions on how and when to use a product and information about the source and composition of a product that appear on packaging labels provide________Blank benefits.
Version 1
117
A) communication B) storage C) perceptual D) protection E) self-realization
311) The communication aspect of packaging on a can of Campbell’s soup would most likely be of the greatest benefit to A) people rushing to get somewhere. B) people on a tight budget. C) people with dietary restrictions. D) people who are brand loyal. E) people who love to try new things.
312) Packaging that provides convenience, product quality, protection, or easy storage offers________Blank benefits. A) communication B) functional C) perceptual D) physiological E) financial
313)
Product packaging like the Pringles cylindrical package that minimizes breakage provides
Version 1
118
A) functional benefits. B) convenience. C) communication benefits. D) technology. E) renewable resources.
314) Products such as Yoplait’s Go-GURT® portable low-fat yogurt in a tube demonstrate the importance of the________Blank of packaging. A) perceptual benefits B) communication benefits C) functional benefits D) technology E) renewable resources
315) Hot-Can Café Latte coffee comes in single-serving, self-heating containers. Not only does this benefit people on the go, it is a popular product with backpackers and hunters because they can still have hot coffee when there is no electricity – no heat source necessary! This demonstrates which benefit of good packaging? A) communication benefit B) perceptual benefit C) financial benefit D) societal benefit E) functional benefit
316) When they were first introduced, peel-back aluminum seals were seen as a great alternative to using a traditional can opener to open cans because many people sliced their fingers with can openers. As soon as the technology became widely available, many manufacturers switched to this safer, more flexible seal. This packaging innovation added a
Version 1
119
A) functional benefit. B) reseller benefit. C) communication benefit. D) perceptual benefit. E) psychological benefit.
317) Which statement about perceptual benefits conveyed by a product’s packaging and labeling isfalse? A) Packaging and labeling convey a brand’s positioning and build brand equity. B) Packaging and labeling have been shown to enhance brand recognition and facilitate the formation of strong, favorable, and unique brand associations. C) The legal requirements for the conveyance of information are an important component of perceptual benefits. D) Changes in packaging and labeling can update or uphold a brand’s image in consumers’ minds. E) The color, shape, and graphics of a package or label can help distinguish one brand from another.
318) The belief that products originating from one country would be of better or worse quality than the products from another country illustrates the________Blank benefits that packaging information can provide. A) functional B) financial C) physical D) perceptual E) communication
Version 1
120
319) The Reynolds Wrap aluminum foil box has two side tabs that say “Press Here to Lock Roll” to keep the roll of foil in place during use. This demonstrates which elements of good packaging? A) perceptual benefits and functional benefits B) protection benefits and functional benefits C) communication benefits and perceptual benefits D) communication benefits and functional benefits E) functional benefits and protection benefits
320)
Which of these is one of the four key challenges that package and label designers face? A) governmental regulations B) cultural and societal issues C) competition from global markets D) health, safety, and security issues E) patent and trademark issues
321) To better connect with its customers by providing functional and aesthetic design features, Kraft did what with its Chips Ahoy! cookies? A) gave the product a more interesting brand personality B) created additional brand extensions, such as adding chocolate dipped and mint dipped cookies C) engaged in a co-branding effort with Blue Bell ice cream D) complied with ISO 9000 total quality management guidelines due to its expansion into Asian markets E) created a patented resealable opening in the bag for easy access and to maintain freshness
Version 1
121
322) The environmental challenges of packaging and labeling are often global in nature and include all of theseexcept which? A) the shortage of viable landfill sites B) growth of solid waste C) the composition of packaging materials D) defective products E) recycling
323) The challenges of packaging and labeling are often global. One particular challenge facing global manufacturers involves A) creating larger size packages to be sold at warehouse stores. B) creating packaging sensitive to educational diversity. C) addressing ongoing environmental concerns. D) ensuring ISO 19000 total quality management within national boundaries. E) making packaging an irrelevant part of a firm’s marketing strategy.
324)
The time a product can be stored before it spoils is referred to as its A) product life cycle. B) use-by date. C) spoilage index. D) shelf life. E) expiration date.
325) Justin’s is the________Blank for a nut butter created by Justin Gold and now owned by Hormel.
Version 1
122
A) copyright B) operational identifier C) patent D) brand name E) label
326) An early breakthrough for Justin’s was offering its nut butter product in squeeze packs, a low risk to try and very convenient. The packaging in this case mostly likely offers which type of benefits? A) functional benefits B) perceptual benefits C) communication benefits D) technology benefits E) sustainability benefits
327) Though Justin’s is most known for its nut butters and peanut butter cups, it has also released a cookbook titledJustin My Kitchen. The cookbook is an example of________Blank for Justin’s. A) a brand extension B) a product line extension C) cannibalization D) private branding E) mixed branding
328) Skippy, a peanut butter brand like Justin’s, both owned by Hormel, is in the________Blank stage of the product life cycle, with marketing strategies that include creating PB Bites, finding new consumers through online channels, and positioning the product as a source of protein. Version 1
123
A) introduction B) growth C) maturity D) decline E) accelerated development
329) Hormel owns a variety of brands, including Jennie-O, Muscle Milk, Skippy, and Justin’s. For these brands, Hormel uses a________Blank strategy. A) co-branding B) multibranding C) multiproduct D) mixed brand E) private branding
330) Justin’s nut butter packaging includes a label with the number of grams of protein it offers on the front, as well as complete nutritional facts on the back. The packaging in this case mostly likely offers which type of benefits? A) functional benefits B) perceptual benefits C) communication benefits D) technology benefits E) sustainability benefits
331) A________Blank at Justin’s is responsible for a category such as nut butters or butter cups. He or she develops all elements of that brand, from the promotional strategy, to everyday pricing, to working with the sales team.
Version 1
124
A) chief marketing officer (CMO) B) brand manager C) marketing manager D) category manager E) sales manager
332) Identify and describe the stages of the generalized product life cycle. For each stage, specify the marketing objective a firm should attempt to achieve.
333)
Explain the difference between primary demand and selective demand.
334) Describe the decline stage of the product life cycle. Explain the two strategies a company might employ if its product were in the decline stage of its product life cycle.
335)
How long is a product life cycle? What determines its length?
Version 1
125
336) What are the five shapes that a product life cycle can take? For each type, describe (as an option, draw) its characteristics.
337) Describe the concept of diffusion of innovation. Identify the category and incidence in the population for each product adopter.
338)
Compare the three ways to manage a product through its product life cycle.
339) Explain the difference between trading up and trading down when repositioning a product.
Version 1
126
340) For more than 30 years, Starkist put 6.5 ounces of tuna into its regular-sized can. Today, Starkist puts only 6.125 ounces of tuna into the same-size can but charges the same price. Georgia-Pacific reduced the content of its Brawny paper towel six-roll pack by 20 percent without lowering the price. There are two sides to the ethical argument about this practice: that of consumer advocates and that of manufacturers. What is the practice called, and what is the basic position of each side?
341)
Describe a brand name and give an example of a logo.
342) Define brand equity. List the four sequential steps used to develop brand equity. Which step is the most difficult?
343) What six criteria are mentioned most often in selecting a good brand name? Give an example of a brand name that illustrates each criterion.
344)
Identify and describe the four branding strategies that product and brand managers use.
Version 1
127
345)
What is multiproduct branding? What are its advantages? Disadvantages?
346) What is the difference between multiproduct branding and multibrand strategies? What advantages are offered by each of these two approaches?
347) Explain how packaging provides communication, functional, and perceptual benefits for manufacturers, retailers, and consumers.
348) A billboard showed simply the shape of a bottle. Typically consumers were able to tell that the ad was for Coca-Cola. Why were consumers able to identify the brand? Specifically, what packaging benefit does Coca-Cola use?
Version 1
128
Answer Key Test name: Chap 11_16e_Kerin 1) B 2) C 3) E 4) D 5) B 6) C 7) A 8) B 9) D 10) A 11) C 12) B 13) E 14) D 15) C 16) E 17) C 18) E 19) A 20) B 21) D 22) A 23) B 24) D 25) A 26) C Version 1
129
27) B 28) C 29) A 30) C 31) E 32) D 33) A 34) B 35) D 36) B 37) A 38) D 39) A 40) E 41) E 42) C 43) A 44) A 45) E 46) C 47) A 48) D 49) A 50) B 51) D 52) B 53) A 54) E 55) A 56) B Version 1
130
57) B 58) B 59) C 60) D 61) D 62) B 63) D 64) C 65) D 66) B 67) C 68) D 69) C 70) D 71) C 72) E 73) A 74) C 75) D 76) D 77) A 78) C 79) C 80) C 81) C 82) C 83) D 84) A 85) D 86) E Version 1
131
87) C 88) B 89) E 90) B 91) A 92) D 93) C 94) B 95) D 96) A 97) E 98) A 99) B 100) E 101) B 102) D 103) C 104) A 105) C 106) D 107) B 108) B 109) A 110) C 111) B 112) D 113) B 114) C 115) E 116) A Version 1
132
117) E 118) A 119) C 120) B 121) E 122) E 123) A 124) D 125) B 126) C 127) E 128) A 129) E 130) A 131) C 132) B 133) D 134) B 135) D 136) C 137) C 138) B 139) D 140) C 141) A 142) E 143) B 144) E 145) A 146) C Version 1
133
147) E 148) D 149) D 150) A 151) B 152) B 153) B 154) C 155) A 156) B 157) D 158) E 159) B 160) C 161) B 162) E 163) D 164) A 165) B 166) C 167) C 168) D 169) B 170) A 171) B 172) C 173) D 174) B 175) D 176) A Version 1
134
177) B 178) A 179) B 180) D 181) E 182) C 183) A 184) E 185) D 186) E 187) C 188) A 189) B 190) C 191) E 192) A 193) A 194) C 195) D 196) C 197) A 198) C 199) B 200) A 201) B 202) E 203) A 204) C 205) C 206) A Version 1
135
207) B 208) D 209) A 210) E 211) C 212) D 213) E 214) D 215) B 216) D 217) A 218) C 219) D 220) D 221) D 222) D 223) E 224) C 225) E 226) B 227) A 228) B 229) C 230) A 231) B 232) C 233) A 234) C 235) E 236) D Version 1
136
237) A 238) B 239) D 240) C 241) B 242) A 243) C 244) E 245) B 246) E 247) D 248) A 249) D 250) A 251) B 252) C 253) D 254) B 255) C 256) A 257) D 258) D 259) D 260) B 261) C 262) D 263) E 264) E 265) C 266) B Version 1
137
267) A 268) B 269) D 270) B 271) E 272) D 273) E 274) C 275) A 276) C 277) A 278) B 279) E 280) A 281) E 282) C 283) B 284) D 285) A 286) B 287) C 288) B 289) A 290) C 291) E 292) C 293) D 294) B 295) D 296) A Version 1
138
297) E 298) E 299) E 300) D 301) B 302) C 303) B 304) E 305) C 306) B 307) B 308) D 309) B 310) A 311) C 312) B 313) A 314) C 315) E 316) A 317) C 318) D 319) D 320) D 321) E 322) D 323) C 324) D 325) D 326) A Version 1
139
327) A 328) C 329) B 330) C 331) B
Version 1
140
CHAPTER 12 1) Focused on its mission and aided by technology, Airbnb developed its current strategy, which centers around A) providing free one-night stays as a way to hook discount travelers. B) limiting travel destinations to those with enough entertainment venues to warrant subsequent visits. C) expanding its offerings to include shared transportation options for frequent travelers. D) hosts that do not simply offer their spaces as rentals but work hard to offer unique experiences. E) rapid expansion in rural areas that do not have traditional hotels.
2)
The new sharing economy consists of all of theseexcept which? A) outsourcing small jobs in a local neighborhood B) helping people rent products, tools, and bicycles rather than purchase them C) renting extra space in a driveway D) peer-to-peer car sharing E) selling theater tickets for half off for day-of performances
3) Intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value are referred to as A) services. B) goods. C) products. D) marketing mix. E) ideas.
4)
Services are
Version 1
1
A) the tangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value. B) the activities provided to complement a tangible good, such as technical support for a computer. C) any activity required for the production of a good that cannot be completed in-house and must be outsourced to another firm. D) the human (nonmechanical) component that is part of the manufacturing process. E) the intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.
5) Intangible items such as airline trips, financial advice, or telephone calls that an organization provides to consumers are referred to as A) production goods. B) support products. C) services. D) goods. E) benefits.
6)
Which of these is considered a service? A) a teeth cleaning B) a hammock C) a motorcycle D) a chai latte E) environmentalism
7)
Which statement about services is most accurate?
Version 1
2
A) Although a major contributor to the GDP nationally, services play only a minor role in GDP on a global scale. B) Whether tangible or intangible, the marketing of services is exactly the same as the marketing of products or ideas since they both satisfy customer needs. C) Almost 35 percent of all jobs created in the United States are in the services sector. D) In the United States, the proportion of the U.S. gross domestic product (GDP) coming from services now exceeds that from goods. E) There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.
8)
Which of statement about services is most accurate?
A) Whether tangible or intangible, the marketing of services is exactly the same as the marketing of products or ideas since they both satisfy customer needs. B) Although a major contributor to GDP nationally, services play only a minor role in GDP on a global scale. C) Exports of services is one of the few areas in which the United States has a trade surplus. D) Very few jobs in the United States are in the services sector. E) Services are making up a declining percentage of the national GDP.
9) Services are now a larger part of the U.S. gross domestic product (GDP) than goods. The growth of the service sector is the result of A) changes in the service mix and the decline in goods production. B) goods representing a larger part of the gross domestic product than services. C) changes in the way service consumers make purchase decisions and the ways in which the marketing mix is used for services. D) increased demand for services that have been available in the past and the increasing interest in new services. E) the imbalance between exported merchandise and commercial services.
Version 1
3
10) There are four unique elements to services—intangibility, inconsistency, inseparability, and inventory—which are referred to as the A) service mix. B) four I’s of services. C) service matrix. D) service quality factors. E) service continuum.
11)
The four I’s of services consist of A) intangibility, inconsistency, inseparability, and innovation. B) intangibility, inventory, inflexibility, and impression. C) intangibility, inconsistency, inseparability, and inventory. D) intangibility, inventory, innovation, and impression. E) intangibility, inconsistency, innovation, and impression.
12)
The intangibility element of a service refers to the fact that it A) has value that can only be determined by using subjective criteria. B) can’t be held, seen, or touched before the purchase decision. C) requires the ability to provide the service even in times of no demand. D) can maintain or accumulate good will with customers. E) can be objectively evaluated.
13) Because services tend to be________Blank rather than an object, they are much more difficult for consumers to evaluate.
Version 1
4
A) an opportunity B) a good C) a risk D) a decision E) a performance
14) To help consumers________Blank, marketers try to make them tangible or show the benefits of using the service. A) assess and compare services B) reduce inconsistency C) increase interaction with service providers D) appreciate the flexibility of services E) understand the interdependence of services
15)
To help consumers assess and compare services, marketers try to make them tangible or A) temporal. B) consistent. C) adaptable. D) measurable. E) show the benefits of using the service.
16) Consumers have more difficulty evaluating services than they do products; the difficulty results from the
Version 1
5
A) intangibility of services. B) incongruity of services. C) inseparability of services. D) inflexibility of services. E) interdependence of services.
17) An American Airlines ad shows the airline's new seats and emphasizes their comfort and ability to recline to overcome the________Blank of its service. A) incongruity B) inconsistency C) inventory costs D) inseparability E) intangibility
18) Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and help her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be experienced or seen before she buys it. Which characteristic of services is she concerned about? A) incongruity B) inconsistency C) intangibility D) inventory costs E) inseparability
Version 1
6
19) Before moving out of their apartment, Nayma and Jake decided to have their carpets cleaned by Stanley Steemer, a company specializing in professional carpet cleaning. The carpet cleaners arrived on time, cleaned the carpets, and drove away in their bright yellow van; only then did the couple see that they did a good job. Nayma and Jake were unable to judge the service before they bought it, which illustrates the________Blank of services. A) inconsistency B) inseparability C) inventory costs D) intangibility E) interdependence
20) To help consumers assess and compare its airline service, Frontier Airlines has used personable animal characters in its advertising to announce and describe benefits, such as leather seats and “stretch” seating, to help deal with the A) incongruity of the service. B) inseparability of the service. C) intangibility of the service. D) inflexibility of the service. E) interdependence of the service.
21) The brochure for Spa Sydell has photographs of people enjoying the various spa amenities. By seeing the pictures of available treatments at the spa, a customer has a better idea of what she is buying. Spa Sydell uses a brochure to help customers deal with the________Blank that is associated with using the service. A) incongruity B) inconsistency C) inventory costs D) inseparability E) intangibility
Version 1
7
22) Services often depend on the people who provide them. As a result, their quality varies with each person’s capabilities and day-to-day job performance. This element of services is referred to as A) incongruity. B) differentiation. C) variation. D) inconsistency. E) intangibility.
23)
Inconsistency of services refers to the idea that
A) there is no regulation of service industries in terms of basic standards of quality. B) the quality of service provided by a firm is often inconsistent with its image. C) the performance of one employee may vary from that of another though the same firm employs both. D) training and standardization of service delivery procedures cannot be accomplished. E) services have a varying degree of durability.
24)
Organizations attempt to reduce inconsistency in their services by A) paying higher incentives to employees to encourage satisfactory performance. B) reducing incentives available to employees because of poor performance. C) reducing the customer contact points in the service delivery process. D) providing standardization and training. E) exercising better hiring practices.
Version 1
8
25) The Philadelphia Phillies baseball team may have great hitting and pitching one day, and lose by 10 runs the next day. This is an example of a service being________Blank, one of the four Is. A) inseparable B) inconsistent C) inventoried D) ineffective E) indirect
26) A local band performed on campus during a pre-graduation party. The students enjoyed the performance, and some were interested enough to buy tickets to another show at a club downtown. But when they went to that concert, the quality of the performance was much poorer than they had heard and seen on campus. The students’ disappointment was the direct result of which characteristic of services? A) inconsistency B) impressionability C) intangibility D) invisibility E) uniqueness of the service
27) Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services, such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office, for people who are too busy to perform these simple tasks. One way she tries to avoid________Blank of services for her regular customers is to make sure that the same well-trained person is always assigned to work for the same client.
Version 1
9
A) inseparability B) inconsistency C) incongruity D) inflexibility E) intangibility
28) Alana operates a wedding preparation service that helps brides-to-be in the planning of their weddings. To maintain a quality image and a standardized offering, Alana provides extensive training for each of her employees. What unique aspect of services is Alana trying to address? A) impressionability B) intangibility C) inconsistency D) inseparability E) uniqueness of the service
29) Khai graduated from law school and took his mom to dinner after the ceremony. At the restaurant, the server filled their water glasses, checked on their table, and took care of their requests. Khai noted that the last time he was at this restaurant, the experience was much worse. This scenario illustrates the________Blank of services. A) impressionability B) intangibility C) inseparability D) uniqueness of the service E) inconsistency
30)
Inseparability in services means consumers
Version 1
10
A) see little variation from one service provider in an industry to another. B) are unable to differentiate price from quality. C) cannot evaluate a service until it is being or has been used. D) cannot separate the service itself from the deliverer of the service. E) cannot separate themselves from the deliverer of the service.
31) The interaction between a service provider and the consumer, such that the two of them co-create value together, is due to which element unique to services? A) inventory B) intangibility C) inseparability D) service continuum E) inconsistency
32) If you find that the staff who work in your college’s career center gave you poor advice or otherwise did not provide sufficient help in finding you employment after graduation, you may be dissatisfied with your entire college experience. This is an example of which issue associated with services? A) intangibility B) impressionability C) incongruity D) inseparability E) inflexibility
Version 1
11
33) Chuck is a guide for tours that take visitors to swim with manatees in central Florida. He is a very gregarious guy with funny stories and a great way with people, so many online reviewers mention him by name and say little about the organization he works for. The reviewers’ inability to see the distinction between Chuck and the tour company is an example of which unique characteristic of services? A) intangibility B) impressionability C) incongruity D) inseparability E) inflexibility
34) When Chengru last got her drive-through order at the fast-food restaurant, she thought the employee who helped her was cold and unfriendly. The food tasted good but was overshadowed by the employee’s demeanor. Since then, Chengru often says something derogatory to her friends about the restaurant based on this single experience. This is an example of which issue associated with services? A) inseparability B) intangibility C) impressionability D) incongruity E) inflexibility
35) When banks are closed, they can offer value to their customers through automatic teller machines (ATMs). This self-service technology also comes with a downside since the ATMs are perceived as being less
Version 1
12
A) convenient. B) reliable. C) personal. D) safe. E) accurate.
36) Although many people love the self-service technology that allows Redbox to provide DVDs 24 hours a day, seven days a week, many people also want personal interaction and recommendations from other people. Redbox confronted this issue by creating “Redblog,” where customers could share their opinions, feelings, and experiences. This is an example of managing the A) inventory aspects of services. B) inseparability aspects of services. C) inconsistency aspects of services. D) intangibility aspects of services. E) impressionability aspects of services.
37)
How is inventory of services different from that of products?
A) Time is less important to customers of services than customers of products. B) Only service inventory can be reduced through more efficient movement of products. C) There are larger costs associated with the handling of service inventory. D) Unlike goods providers, the service provider is often unavailable when there is a demand for the service. E) Service inventory costs are related to idle production capacity rather than storage or movement.
38)
________Blank occurs when a service provider is available but there is no demand.
Version 1
13
A) Off-peak pricing B) Idle production capacity C) Static demand D) Capacity management E) Inventory scarcity
39)
Idle production capacity for services is defined as
A) a situation where the demand exceeds the availability of service providers and as a result, no services can be offered. B) those times the supply of tangible goods exceeds the primary demand for the service. C) a situation in which a service provider is available but there is no demand for the service. D) integrating the service component of the marketing mix with efforts to influence consumer demand. E) the reduced effectiveness of one service provider serving multiple clients at the same time.
40) The emergency room staff in Houston’s largest hospital was pleasantly surprised when a four-day Fourth of July weekend brought in few accident victims for treatment. They know from experience that such public holidays usually have high rates of accidents. For the hospital’s business office, the lower demand for the emergency room services likely means A) a break in the service continuum. B) its services are no longer tangible. C) its services can be separated from the staff. D) the hospital has idle production capacity. E) an opportunity for gap analysis.
Version 1
14
41) Beverly has 15 tax accountants on her staff. During the months of February, March, and April, her staff is overworked, and she may even hire more employees to meet the tax preparation needs of her clients. Beverly is not currently experiencing________Blank; in fact, all of her employees are fully being used. A) off-peak pricing B) idle production capacity C) static demand D) capacity marketing E) capacity inventory
42) Southwest Airlines operates a daily flight between Chicago and Phoenix using a Boeing 737, which has a capacity of 120 passengers. During the past month, the flight has averaged 112 passengers. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe? A) incongruity B) intangibility C) inconsistency D) inseparability E) idle production capacity
43) The________Blank cost of a service is the cost of paying the person who provides the service along with any needed equipment. A) intangibility B) inconsistency C) inseparability D) inventory E) hidden
Version 1
15
44) For Merrill Lynch, it is possible to minimize________Blank by having its financial advisors compensated through commissions. A) shrinkage B) seasonal absenteeism C) economic recessions D) derived demand E) inventory carrying costs
45)
In retail stores, inventory carrying costs can be reduced by A) using a straight salary compensation plan. B) hiring additional full-time personnel. C) allowing personnel to work overtime. D) minimizing employee absenteeism. E) cutting worker hours.
46)
The inventory costs of services include A) equipment and training costs. B) management and material costs. C) service delivery and spoilage costs. D) salary of service provider and equipment costs. E) salary of service provider and training costs.
47)
The inventory costs of real estate agencies are low because they
Version 1
16
A) use a straight salary compensation plan. B) allow personnel to work any hours a day and any number of days per week. C) decrease the number of workdays per week but increase the hours per day. D) have employees who work on commission and need little expensive equipment. E) are responsible for their own training, transportation, and supplies.
48)
Which service has the lowest inventory carrying cost? A) restaurant B) automobile repair C) amusement park D) dry cleaner E) animal hospital
49)
Which service has the lowest inventory carrying cost? A) railroad B) hotel C) long-term care facility D) airline E) insurance company
50)
The inventory carrying costs of airlines are high because they A) use a straight salary compensation plan for the large numbers of flight attendants. B) have high-salaried pilots and very expensive equipment. C) allow baggage personnel to work overtime. D) decrease the number of workdays per week but increase the hours per day. E) use a commission compensation system for their reservationists.
Version 1
17
51)
The highest inventory carrying costs would most likely be for which service? A) real estate agencies B) dry cleaners C) auto repair centers D) hair salons E) hospitals
52)
Which service has the highest inventory carrying cost? A) university B) hotel C) auto repair garage D) amusement park E) insurance company
53) The range of offerings from the tangible to the intangible, or product-dominant to service-dominant, is referred to as the A) service continuum. B) product continuum. C) tangibility scale. D) inseparability span. E) customer contact audit.
54) According to the service continuum, what are offerings such as theaters, nursing, and air travel?
Version 1
18
A) product-dominated offerings B) people-dominated offerings C) service-dominated offerings D) equipment-dominated offerings E) idea-dominated offerings
55) salt?
According to the service continuum, what are offerings such as neckties, dog food, and
A) product-dominated offerings B) people-dominated offerings C) service-dominated offerings D) equipment-dominated offerings E) idea-dominated offerings
56)
According to the service continuum, which offering has the highest level of intangibility? A) tailored suit B) advertising agency C) tutoring service D) fast-food restaurant E) salt
57) According to the service continuum, which offering has an equal balance of tangible and intangible attributes?
Version 1
19
A) tailored suit B) tutoring service C) dog food D) fast-food restaurant E) movie theater
58)
According to the service continuum, which offering has the lowest level of intangibility? A) designer dress B) law practice C) tutoring service D) cat food E) baking soda
59) Beyond their core offerings, service providers use________Blank services to differentiate their offerings from competitors and add value for consumers. A) designer B) post-purchase C) intangible D) reactive E) supplementary
60)
Services can be classified by
Version 1
20
A) their method of delivery. B) their use of idle capacity time. C) the nature of their ownership. D) their location on perceptual maps. E) organizational reach.
61)
Services can be classified according to whether they are A) national or global. B) used by independent contractors. C) privately owned or publicly owned. D) delivered by people or equipment. E) owned by individuals or corporations.
62)
Services can be classified according to whether the provider A) is national or global. B) uses independent contractors or not. C) is privately owned or publicly owned. D) is owned by individuals or corporations. E) is a for-profit or nonprofit organization or a government agency.
Version 1
21
63) Consider Figure 12-4. Services can be classified by their method of delivery. Box A represents
A) government-delivered services. B) people-delivered services. C) fee-delivered services. D) equipment-delivered services. E) nonprofit-delivered services.
64) Consider Figure 12-4. Services can be classified by their method of delivery. Box B represents
Version 1
22
A) government-delivered services. B) people-delivered services. C) fee-delivered services. D) equipment-delivered services. E) nonprofit-delivered services.
65) Services can be classified by their method of delivery. Services such as ATMs, taxis, and airlines are considered A) government-delivered services. B) people-delivered services. C) fee-delivered services. D) equipment-delivered services. E) nonprofit-delivered services.
66) Services can be classified by their method of delivery. Services such as management consulting, plumbing, and cleaning are considered A) equipment-based services. B) technology-based services. C) fee-based services. D) people-based services. E) nonprofit services.
67)
The categories for people-based services include
Version 1
23
A) volunteers, skilled operators, and professionals. B) unskilled labor, skilled labor, and professionals. C) unskilled operators, unskilled labor, and skilled labor. D) automated, skilled operators, and unskilled labor. E) automated, skilled operators, and professionals.
68)
Which of these is the best example of a people-based service? A) movie theaters B) airlines C) catering D) vending machines E) taxis
69)
What do a security guard, a plumber, and a management consultant have in common? A) They are all tangible services. B) They do not have problems with idle production capacity. C) They are all equipment-based services. D) They are all people-based services. E) They never use off-peak pricing.
70)
Three categories for equipment-based services are
Version 1
24
A) unskilled labor, those operated by relatively unskilled operators, and self-serve. B) professionals, those operated by relatively unskilled operators, and automated. C) automated (self-serve), those operated by relatively unskilled operators, and those operated by skilled operators. D) unskilled labor, skilled labor, and professionals. E) those operated by skilled operators, unskilled labor, and professionals.
71) Compared with people-based services, equipment-based services do not have the marketing concern of A) intangibility. B) insensitivity. C) inventory. D) inconsistency. E) immeasurability.
72) Equipment-based services do not have the marketing concern of inconsistency because________Blank have been removed from the delivery of the service. A) risk and product liability B) people C) learning requirements D) automations E) technology accessories
73) Equipment-based services, such as ATMs, online brokerage firms, and automated car washes, do not have the marketing concern of
Version 1
25
A) inconsistency. B) intangibility. C) inseparability. D) inventory. E) independence.
74)
Which of these is the best example of an equipment-based service? A) lawn care B) doctors C) dry cleaners D) lawyers E) janitorial services
75)
What do a movie theater, an automated car wash, and electric utilities have in common? A) They are all tangible services. B) They are all people-based services. C) None of them has problems with idle production capacity. D) They never use off-peak pricing. E) They are all equipment-based services.
76) What do an online travel agency, a limousine service, and a music streaming service have in common?
Version 1
26
A) They are all strictly tangible services. B) They are all people-based services. C) None of them has a problem with idle production capacity. D) They are all equipment-based services. E) They all require skilled operators.
77)
For nonprofit organizations, excesses in revenue over expenses are
A) taxed at one-half the rate of for-profit organizations. B) distributed equally to all of the organization’s shareholders. C) returned to the organization’s treasury to allow the continuation of the service. D) taxed at a reduced rate if the revenue is to be used in keeping with the organization’s core mission. E) not taxed at all unless it is a religious organization.
78)
A nonprofit organization may pay taxes if A) excess revenues exceed 20 percent of the budget. B) the organization is not considered to be a religious institution. C) revenue is received from overseas subsidiaries. D) revenue-generating holdings are not directly related to the organization’s core mission. E) money is spent on research and development, then it is taxed at a significantly lower
rate.
79) Recently, nonprofit organizations like the American Red Cross, the March of Dimes, and Outward Bound
Version 1
27
A) were unable to use traditional marketing practices since they were 501(c)(3) organizations as classified by the IRS. B) thought that marketing would limit their credibility and profitability as nonprofit organizations. C) could not afford marketing activities. D) have increased their use of marketing practices. E) worried that marketing activities would create excess demand.
80)
Recently, many nonprofit organizations such as the American Red Cross A) have found marketing practices to be counterproductive. B) began using marketing activities to improve profits. C) could not afford marketing activities. D) thought that marketing activities would create excess demand. E) have used marketing to develop advertising and other promotional campaigns.
81) as
Outward Bound uses marketing to help achieve its goals. As a service, it can be classified
A) a nonprofit organization. B) a for-profit organization. C) equipment-based. D) a business firm. E) a governmental agency.
82) Sterile Feral, Inc., is a nonprofit organization that catches wild or stray cats. It then neuters, vaccinates, and releases them. In recent years, nonprofit organizations such as Sterile Feral have turned to marketing to help it
Version 1
28
A) receive additional government funding. B) expand its business to stray dogs. C) maintain its nonprofit status. D) better serve its donors in order to achieve its goals. E) compete with other similar organizations.
83) The Susan G. Komen organization has used________Blank, in addition to its familiar walks and races, to raise more than $2 billion for breast cancer research and community outreach. A) social marketing B) private donations C) sales promotion campaigns D) green marketing programs E) sharing of resources
84) The American Red Cross uses social marketing tools such as________Blank to increase blood donations. A) blogs B) e-mail blasts C) wikis D) apps E) billboards
85) to
The first step a nonprofit organization should take to engage people with social media is
Version 1
29
A) set specific measurable goals. B) understand what motivates people to take up causes. C) create a simple and realistic operating budget. D) create a well-defined organizational hierarchy. E) develop a unique selling proposition.
86) With respect to social marketing, nonprofit organizations should do all of theseexcept which? A) use social media that allow the use of digital photos, video, and gaming skills B) allow people to feel like they are doing something C) restrict the sharing of information such personal stories, due to privacy concerns D) have metrics to assess the effectiveness of its social media activities E) understand what motivates people to take up causes
87) What type of organization is the U.S. Forest Service, which manages our national park system? A) It is a privately owned firm. B) It is a government-sponsored service. C) It is a good-dominant organization on the service continuum. D) It is an organization that does not experience idle production capacity. E) This agency is not considered an organization.
88)
Which of these is a government agency that provides a service?
Version 1
30
A) March of Dimes B) American Red Cross C) Home Depot D) United States Postal Service E) Chase Bank
89) What do the U.S. Coast Guard, the Connecticut Department of Social Services, and the Phoenix Fire Department have in common? A) They are all privately owned companies. B) None fit on the service continuum. C) They never experience idle production capacity. D) Capacity management is not an issue for these organizations. E) They are all government-sponsored services.
Version 1
31
90) According to Figure 12-5, purchases in the ‘A’ portion would most likely be evaluated on ________Blank properties.
A) value B) search C) credence D) experience E) quality
Version 1
32
91) According to Figure 12-5, purchases in the B portion would most likely be evaluated on ________Blank properties.
A) value B) search C) credence D) experience E) expenditure
Version 1
33
92) According to Figure 12-5, purchases in the C portion would most likely be evaluated on ________Blank properties.
A) value B) search C) credence D) experience E) expenditure
Version 1
34
93)
According to Figure 12-5, which statement is most accurate?
A) Legal services are high in search credence properties, but medical services are high in experience properties. B) Haircuts are high in experience properties, but barbershops are high in search properties. C) Jewelry is high in search properties, although diamonds are high in credence properties. D) Television repair is more difficult to evaluate than restaurant meals. E) Child care is equally high in search, experience, and credence properties because the decision is so important.
94) Tangible products have________Blank properties, such as color, size, and style, which can be determined before purchase.
Version 1
35
A) search B) form C) experience D) credence E) brand
95)
Which of these products is high in search properties? A) clothing B) TV repair C) legal services D) auto repair E) medical diagnosis
96) One of the primary differences between tangible goods and services involves a consumer’s ability to make prepurchase evaluations; tangible products have________Blank properties, whereas services have________Blank properties. A) consistent; inconsistent B) search; experience C) inconsistent; consistent D) experience; search E) gap; encounter
97) Consumers can easily evaluate shoes, jewelry, and skis before making a purchase so they have________Blank properties. On the other hand, consumers can evaluate services such as restaurants, ski instructors, and ride sharing only during or after their purchase, meaning these products have________Blank properties.
Version 1
36
A) consistent; inconsistent B) search; experience C) inconsistent; consistent D) experience; search E) gap; encounter
98)
Which of these is high in experience properties? A) clothing B) legal services C) auto repair D) a vacation E) a medical diagnosis
99)
Services such as restaurants and child care are evaluated on________Blank properties. A) search B) form C) experience D) credence E) performance
100) A concierge company performs everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these tasks. The clients can evaluate the services provided
Version 1
37
A) only before they are purchased. B) in the same fashion as tangible goods. C) more easily than evaluating tangible goods. D) before, during, and after they are purchased or consumed. E) only during consumption or after they are purchased.
101) Alesia has a backache due to overexertion. She believes a massage would loosen her back muscles and make her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be felt before she buys it. Alesia realizes massages have________Blank properties. A) search B) form C) experience D) credence E) performance
102) After selecting U.S. Bank after a move to a new state, Theresa needed help with her accounts and went to visit a personal banker. She was very impressed with the banker’s attitude and willingness to explain certain items to her in terms she could understand. The service Theresa received from the U.S. Bank representative had________Blank properties. A) credence B) expertise C) search D) experience E) customer relationship
103) Services provided by specialized professionals, such as medical diagnoses and legal services, have certain properties or characteristics that the consumer may find impossible to evaluate even after their purchase or consumption. These are________Blank properties.
Version 1
38
A) customer contact B) credence C) capacity D) contract E) relationship
104)
Which of these is high in credence properties? A) clothing B) vacation C) jewelry D) houses E) auto repair
105) Services performed by surgeons or lawyers are primarily evaluated on________Blank properties. A) search B) form C) indirect D) credence E) experience
106) To reduce the uncertainty created by________Blank properties, service consumers turn to personal sources of information such as opinion leaders, early adopters, and reference group members during the purchase decision process.
Version 1
39
A) search B) credence C) experience D) expertise E) quality
107) Research indicates that consumers search for much more information when trying to evaluate services with which properties? A) search B) tangible C) assurance D) experience E) credence
108) Ali has a toothache and worries about not having had regular dental checkups recently. He now needs to find a dentist but does not have one that he has used before. Because dentistry has________Blank properties, Ali plans to ask his friends for a recommendation for a dentist they like to be sure that he finds a good one. A) search B) form C) experience D) credence E) performance
109) Evan works for the Geek Squad, mostly on PC and laptop repair. He has noticed that most consumers ask for references from happy customers and don’t know much about computers themselves. Which of these is most likely to be a characteristic of the repair services that Evan performs?
Version 1
40
A) Customers are engaged in a low involvement purchase process. B) The quality of services can be predetermined in a similar manner to tangible products. C) A consumer may not have the ability to judge the quality of the repair service even after it has been provided. D) The buyer does not participate in the delivery of the service. E) The service provider should concentrate on the problem recognition stage of the purchase decision process in the marketing of computer services.
110) Comparing the differences between consumers’ expectations about a service and their experience with it is referred to as A) customer relationship management. B) service encounter differential. C) gap analysis. D) a customer contact audit. E) a service audit.
111)
The two basic components of a customer’s evaluation of a service are A) value and customer contact. B) expectations and experience. C) intangibility and inconsistency. D) performance and credence. E) inconsistency and inseparability.
112)
Which of these influences a consumer’s expectations for a service not yet experienced?
Version 1
41
A) the economy B) consumer income C) word-of-mouth communications D) competitive trends E) how the organization delivers its service
113) A person can establish expectations for a service he or she has not yet experienced through word-of-mouth communications, personal needs, past experiences, and promotional activities. Actual experiences, though, are determined by A) the way the organization delivers its service. B) the positive reinforcement from friends, family, and peers, after the service was provided. C) repeat encounters with the same service provider. D) psychological feelings of well-being. E) a formal post-purchase evaluation or questionnaire.
114) Many restaurants ask consumers to evaluate their experience on a short questionnaire when they pay their bill. This assessment of consumer expectations compared with the actual visit is called a A) service encounter survey. B) customer profile analysis. C) gap analysis. D) customer contact audit. E) service audit.
115)
There are five key dimensions of service quality:
Version 1
42
A) reliability, responsiveness, competence, courtesy, and empathy. B) knowledge, responsiveness, respect, diligence, and honesty. C) honesty, respect, empathy, reliability, and diligence. D) reliability, competence, alacrity, fairness, and product knowledge. E) reliability, tangibility, responsiveness, assurance, and empathy.
116)
Which of these is a key dimension of service quality? A) reliability B) intelligence C) honesty D) authenticity E) extroversion
117) The dimension of service quality called________Blank is the ability to perform the promised service dependably and accurately. A) reliability B) assurance C) accuracy D) responsiveness E) empathy
118) Sterile Feral, Inc., is a nonprofit organization that catches wild or stray cats, and then neuters, vaccinates, and releases them. Veterinarians are particularly impressed with how effectively and safely the organization performs its service each and every time. With which service quality dimension are veterinarians most impressed?
Version 1
43
A) assurance B) tangibility C) reliability D) credibility E) empathy
119) Josh is looking for a new smartphone provider because he has grown tired of the many dropped calls, particularly near his school. In terms of the service quality dimensions, Josh is unhappy with which dimension of his service? A) assurance B) tangibility C) responsiveness D) reliability E) empathy
120) As a dimension of service quality, the appearance of physical facilities, equipment, personnel, and communication materials is referred to as A) communication. B) responsiveness. C) competence. D) tangibility. E) empathy.
121) Amanda needs to have her car repaired. When she visits the shop she is considering, she notices the AAA seal of approval in the front window. The shop is also clean and organized, and the mechanics are dressed in tidy uniforms. Amanda notes these as part of her assessment of which service quality dimension?
Version 1
44
A) assurance B) tangibility C) reliability D) responsiveness E) empathy
122)
As a dimension of service quality, responsiveness is
A) the ability to perform the promised service dependably and accurately. B) the appearance of physical facilities, equipment, personnel, and communication materials. C) the willingness to help customers and provide prompt service. D) the knowledge and courtesy of employees and their ability to convey trust and confidence. E) caring, individualized attention provided to customers.
123) The dimension of service quality called________Blank is willingness to help customers and provide prompt service. A) assurance B) reliability C) responsiveness D) empathy E) sympathy
124) Gray is looking for a new financial advisor. The one he currently uses has been taking three days or longer to return his phone calls, and the wasted time feels like a missed opportunity to him. In terms of the service quality dimensions, Gray is unhappy with which dimension of this service?
Version 1
45
A) assurance B) tangibility C) reliability D) responsiveness E) empathy
125) The dimension of service quality called________Blank is knowledge and courtesy of employees and their ability to convey trust and confidence. A) assurance B) sympathy C) empathy D) responsiveness E) reliability
126) As a dimension of service quality, the caring, individualized attention provided to customers as a dimension of service quality is referred to as A) reliability. B) responsiveness. C) competence. D) assurance. E) empathy.
127) Beth is a well-liked primary care doctor. Her patients comment on her great listening skills and the gentle but firm way she gives them advice. She even relates personal stories to encourage them to improve their own health. Here, Beth exhibits which service quality dimension?
Version 1
46
A) assurance B) tangibility C) empathy D) reliability E) credibility
128)
According to Figure 12-6, Box A represents which dimension of service quality?
A) tangibility (tangibles) B) responsiveness C) assurance D) reliability E) empathy
Version 1
47
129)
According to Figure 12-6, Box B represents which dimension of service quality?
A) reliability B) assurance C) tangibility (tangibles) D) empathy E) responsiveness
Version 1
48
130)
According to Figure 12-6, Box C represents which dimension of service quality?
A) reliability B) empathy C) tangibility (tangibles) D) assurance E) responsiveness
Version 1
49
131)
According to Figure 12-6, Box D represents which dimension of service quality?
A) reliability B) empathy C) assurance D) tangibility (tangibles) E) responsiveness
Version 1
50
132)
According to Figure 12-6, Box E represents which dimension of service quality?
A) reliability B) empathy C) tangibility D) assurance E) responsiveness
133)
Which statement about service failures is most accurate?
Version 1
51
A) Only 5 to 10 percent of dissatisfied customers choose to complain to the company. B) Once customers complain, they expect all of their demands to be met. C) Only 20 percent of consumers will give a company a second chance if they are not fully satisfied during the first encounter. D) People are twice as likely to share good service experiences as bad experiences. E) Monitoring social media websites causes unwarranted action since complaints are usually isolated instances and are not indicative of the actual service delivered.
134) Most marketing experts agree that it is best to________Blank service failures, particularly when the failure is viewed to be the result of a controllable factor. A) ignore B) present success stories to negate C) respond to D) blog about E) consider
135)
The entire sequence of steps in the service delivery process is known as A) a service routine. B) customer access points. C) service path-analysis. D) a service encounter. E) the wheel of services.
136)
A customer contact audit refers to
Version 1
52
A) the initial contact between a service provider and the ultimate consumer. B) a flowchart of the points of interaction between a consumer and a service provider. C) a method of consumer evaluation of service quality and consistency. D) an estimation of demand based on service forecasting techniques. E) a systematic assessment of a service provider’s objectives, strategies, and performance in terms of social responsibility.
137) A flowchart of the points of interaction between consumer and service provider is referred to as A) a service continuum. B) gap analysis. C) a customer contact audit. D) a customer contact continuum. E) a service audit.
138) Recent research suggests that employees affect the success of customer relationships through which of these? A) innovativeness B) competence C) persuasiveness D) assertiveness E) friendliness
139) A version of a customer contact audit that includes all employee actions and acknowledges that services are designed to be “experiences” is referred to as
Version 1
53
A) a service continuum. B) gap analysis. C) a service blueprint. D) an experience economy. E) a service audit.
140) Shawn had a craving for sushi so he searched Yelp for a restaurant in his vicinity. When he arrived, he was impressed with the menu posted outside and decided to go in. He was greeted with a smile by a hostess and then immediately seated at a well-appointed table where he was given a warm cloth for his hands. The food was beautifully presented, the rice was the perfect texture and temperature, and the fish was fresh and delicious. Halfway through the meal, he excused himself to go to the restroom. It was clean but the paper towel dispenser was empty. He returned to his table, finished his meal, and paid his check. The hostess said good-bye and asked him to return. The first point in his customer contact audit was A) searching Yelp. B) reading the menu on the door. C) being greeted by the hostess. D) being seated at his table. E) receiving his meal.
141) Shawn had a craving for sushi so he searched Yelp for the name of a restaurant in his vicinity. When he arrived, he was impressed with the menu posted outside and decided to go in. He was greeted with a smile by a hostess and then immediately seated at a well-appointed table where he was given a warm cloth for his hands. A waiter beautifully presented the food, the rice was the perfect texture and temperature, and the fish was fresh and delicious. Halfway thought the meal, he excused himself to go to the restroom. It was clean but the paper towel dispenser was empty. He returned to his table, finished his meal, and paid his check. The hostess said good-bye and asked him to return. Which statement is most accurate?
Version 1
54
A) Reading the menu posted outside was ’Shawn’s first point of interaction in the customer contact audit because if he hadn’t liked the selections, he wouldn’t have gone into the restaurant. B) Being greeted by the hostess was the first point of interaction in the customer contact audit because it was the first “human” encounter with the actual service provider—the restaurant’s employee. C) The real first point in the customer contact audit was between Shawn and the waiter. The waiter is wholly responsible for the service quality delivered. D) The lack of paper towels in the restroom was the first point of interaction in the customer contact audit because it was the first time his expectations weren’t met. E) Yelp reviews, the menu on the door, the hostess’s greeting, the waiter, the quality and presentation of food, and even the restroom were all important service encounters.
142)
Which of these is a point in the customer contact audit for a health club? A) participating in one of the health club’s exercise classes B) the customer’s diet C) too much traffic on the way to the club D) a willingness to exercise E) meeting an attractive gym member
143)
Which statement about relationship marketing is most accurate?
A) The number of encounters in a service experience should always be the same. B) The service encounter represents an opportunity to develop social bonds with customers. C) An after-holiday sale is a good incentive to create a loyal customer relationship. D) The purpose of relationship marketing is to benefit the customer, not the organization. E) A major customer benefit of relationship marketing is a reduction in the price that is paid for the services an organization renders.
Version 1
55
144) Relationship marketing provides several benefits for service customers, including which of these? A) customized service delivery B) no need for comparison shopping C) discounted switching costs D) implied warranties E) strict government quality performance guidelines
145) Recent surveys of consumers have indicated that while customers of many services are interested in being “relationship customers,” they require that the relationship be balanced in terms of A) honesty, a lack of prejudice, and empathy. B) loyalty, benefits, value, kinds of connections, and respect for privacy. C) loyalty, honesty, and integrity. D) financial benefits, product benefits, and preferential treatment. E) financial benefits, product benefits, and interpersonal benefits.
146) An expanded marketing mix for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, and process, is referred to as the A) seven Ps of services marketing. B) service matrix. C) service continuum. D) service commitment. E) service mix.
Version 1
56
147) While there are the four Ps of marketing, there are the________Blank Ps of services marketing. A) three B) five C) six D) seven E) eight
148)
All of these comprise the seven Ps of services marketingexcept which? A) product B) process C) profitability D) people E) physical environment
149) The use of brand names is especially important for services because of which unique characteristic of services? A) inventory costs B) inseparability C) inconsistency D) invisibility E) intangibility
150)
Which statement regarding service branding is most accurate?
Version 1
57
A) New services cannot be patented. B) Because services are intangible and more difficult to describe, brand names and logos are of critical importance. C) Service providers must include the word service in all their brand names. D) Service firms without a brand reputation find it easy to introduce new services. E) All service logos and brands must be designated with the “SM” symbol.
151)
Which statement regarding service branding is most accurate?
A) Unlike products, services do not use subbranding. B) Service providers must include the word service in their brand names to assure that customers are not purchasing a tangible product. C) Service firms with a well-established brand reputation will find it easier to introduce new services than those without a brand reputation. D) Many consumers are suspicious of service providers that offer too many service line extensions. E) Many service organizations, such as banks, hotels, and restaurants, do not rely heavily on branding because of the extent to which they are people-, not equipment-based services.
152) The FedEx brand name suggests that its service is credible and fast. This perception is important because of which unique characteristic of services? A) inventory costs B) inseparability C) inconsistency D) invisibility E) intangibility
153)
Tuition, charges, fares, fees, and rates are all terms
Version 1
58
A) given to the tangible portion of the price of a service. B) that are interchangeable when identifying the price of a service. C) given to the intangible portion of the price of a service. D) given to describe the price of services. E) used in services to imply a higher quality product than the terms cost or price.
154) Because of the intangible nature of services, consumers often perceive price as a possible indicator of the________Blank of the service. A) profit or ROI B) customer value C) quality D) target market E) hidden costs
155)
All of these are true about the price element of servicesexcept which? A) Price can be referred to in a variety of terms. B) Price can affect consumer perceptions of the service. C) Price can be kept consistent through the use of off-peak pricing. D) Price can be used in capacity management. E) Price can be used in services to imply a higher quality.
156) One tool available to marketers that are trying to even out the variations in demand for services is
Version 1
59
A) off-peak pricing. B) product lay-away. C) credit incentives. D) container sales. E) product rationing.
157) Service providers use tools such as________Blank, which consists of charging different prices for different times of the day or during different days of the week, to manage the variations in demand for their services. A) scale pricing B) capacity pricing C) down-time pricing D) off-peak pricing E) fraction pricing
158)
Many service businesses use off-peak pricing to manage variations in A) costs of delivering service. B) supply for a service. C) profitability based on time of day or week. D) demand for a service. E) capacity.
159) The less-expensive matinee movie pricing offered on theater showings prior to 4 p.m. is an example of
Version 1
60
A) price lining. B) price differentiation. C) off-peak pricing. D) bait-and-switch pricing. E) idle production pricing.
160) Many commuters in New York install radio frequency identification (RFID) devices on their cars that can be read automatically as they approach a toll booth. This saves time, improves traffic flow, and means drivers don’t need to keep exact change in their cars. It also offers New York authorities the opportunity to manage traffic flow by charging different toll amounts for different times of day, such as charging a higher toll for morning and afternoon rush hour periods. This pricing strategy is A) price gouging. B) off-peak pricing. C) flow management pricing. D) price differentiation. E) idle production pricing.
161) A major factor in developing a service marketing strategy is________Blank because of the inseparability of services from the producer. A) product B) price or distribution C) promotion D) place E) process
162) Place or distribution is a major factor in developing a service marketing strategy because of the________Blank of services.
Version 1
61
A) inventory B) inseparability C) inconsistency D) intangibility E) information
163)
Which statement regarding the place element of services is most accurate?
A) Place has little impact on the marketing of services because there are so many intermediaries from which a consumer may choose. B) The distribution site and the service provider are the intangible components of the service. C) Place is an especially important factor because of the inconsistency between the service and the service provider. D) As competition grows in service industries, the value of convenient distribution is being recognized. E) Technology is an effective way to bring services to the customer but only if the consumer is a new user. Otherwise, the disadvantages outweigh the benefits.
164)
All of these are benefits to be stressed during the promotion of servicesexcept which? A) low price B) consistent quality C) location D) availability E) efficiency
165) A publicity tool frequently used by nonprofit services, which uses free space or time donated by the media, is referred to as
Version 1
62
A) a promotion. B) an advertisement. C) a press release. D) a cooperative advertisement. E) a public service announcement.
166) Many nonprofit organizations use PSAs in their media planning. What does the acronym PSA stand for? A) public stakeholder agreement B) promotional service amendment C) public sustainability amendment D) promotional setting announcement E) public service announcement
167) Unlike tangible goods, many services depend on________Blank, one of the seven Ps of services, for the creation and delivery of the customer service experience. A) people B) profitability C) process D) productivity E) physical environment
168) Customers will often judge the________Blank of the service experience based on the performance of the people providing the service.
Version 1
63
A) price B) productivity C) process D) quality E) physical environment
169) The notion that a service organization must focus on its employees before successful programs can be directed at customers is referred to as A) staffing analysis. B) internal marketing. C) external marketing. D) stakeholder marketing. E) employee marketing.
170) The concept of internal marketing is based on the notion that a service organization must focus on its________Blank before successful programs can be directed at customers. A) competitors B) prospects C) shareholders D) employees E) suppliers
171) All of these are employee development actions that are critical to the overall success of service organizationsexcept which?
Version 1
64
A) coaching B) leadership C) training D) communication E) compensation
172) Lucia’s is an eatery famous for its fine steaks, spicy chili, and outstanding customer service. To maintain the restaurant’s reputation for putting its customers first, the marketing manager at Lucia’s has developed marketing activities that are directed at its waiters and waitresses. These activities are an example of A) internal marketing. B) persuasive marketing. C) service marketing. D) stakeholder marketing. E) employee marketing.
173) The relationships between internal marketing, internal service quality, employee productivity, and firm profitability is referred to as A) services blueprinting. B) employee marketing. C) the service-profit chain. D) relationship marketing. E) gap analysis.
174) as
The process of managing the entire customer experience with the company is referred to
Version 1
65
A) services marketing. B) internal marketing. C) customer experience management. D) relationship marketing. E) gap analysis.
175)
The customer experience with a service should be managed to ensure it
A) allows for spontaneity and not be too rigid or planned. B) will be unique to each individual customer’s experience. C) stresses the similarities in style, function, and form of the organization’s service relative to the top competitors in the industry. D) differentiates a service from other service offerings. E) will be independently judged by someone outside the firm to guarantee objectivity.
176) Experts suggest that the customer experience with a service should be all of theseexcept which? A) consistent B) undifferentiated C) valuable D) intentional E) relevant
177) The appearance of the environment in which the service is delivered and where the firm and customer interact can influence the customer’s________Blank of the service.
Version 1
66
A) creation B) branding C) exploitation D) life cycle E) perception
178) The tangibles that make up the service, such as buildings, landscaping, vehicles, furnishings, signage, brochures, and equipment, comprise which element of the seven Ps of services marketing? A) process B) place C) physical environment D) productivity E) product
179) Service firms can manage their physical environment to influence customers’ perceptions through A) service delivery management. B) relationship management. C) customer experience management. D) exposure management. E) impression management.
180) The actual procedures, mechanisms, and flow of activities by which a service is created and delivered is referred to as
Version 1
67
A) process. B) procedure. C) productivity. D) protocol. E) plan.
181)
In the seven Ps of services marketing, process is
A) the patented steps of service encounters that distinguish one service provider from another. B) the licensed procedures that have met ISO 9000 guidelines for safety. C) the procedures, mechanisms, and flow of activities by which the service is created and delivered. D) a protocol for behaviors and activities for people-based rather than technology-based services. E) the decisions consumers make during the purchase of services.
182)
In the seven Ps of services marketing, process involves not only what is created but also A) if it is created. B) how it is created. C) when it is created. D) for whom it is created. E) why it is created.
183) A(n)________Blank is very important to the process aspect of services because it helps identify steps that will ultimately lead to better service creation and delivery processes.
Version 1
68
A) customer contact audit B) internal marketing review C) tangibility gap analysis D) service continuum E) consumer experience evaluation
184) Most services have a limited capacity due to the________Blank of the service from the service provider and the perishable nature of the service. A) inventory B) inconsistency C) intangibility D) information E) inseparability
185) Integrating the service component of the marketing mix with efforts to influence consumer demand is referred to as A) customer management. B) internal marketing. C) product management. D) capacity management. E) seven Ps of services marketing.
186)
Capacity management refers to
Version 1
69
A) integrating the service component of the marketing mix with efforts to influence consumer demand. B) when the service provider is available but there is no demand. C) charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service. D) the practice of changing prices for services in real time in response to supply and demand conditions. E) the operating cost per hour per employee or technology subtracted from the revenue generated by each full-time employee equivalent.
187)
Service organizations must manage the availability of the offering, in part so that
A) marginal costs exceeds marginal revenues. B) service encounters can identify planning gaps. C) demand matches capacity over the duration of the demand cycle. D) the price elasticity of demand is unitary. E) the service experience is consistent with the sharing economy standards of the organization’s industry.
188)
Airlines use load factor as a________Blank measure on their marketing dashboards. A) productivity B) price differentiation C) tangibility D) capacity management E) profitability
189)
An airline’s load factor refers to the
Version 1
70
A) percentage of paying customer seats flown one mile plus frequent flyer redemption seats flown one mile. B) percentage of empty seats on a plane compared to its total capacity. C) percentage of available seats flown one mile occupied by a paying customer. D) percentage of seats that are overbooked on any given flight to prevent profit shortfalls for “no shows.” E) total of all paid seats plus all luggage overcharges and all purchased beverages, meals, and other amenities or additional services, per flight.
190) Airlines feature load factor as a capacity management measure on their marketing dashboards, along with two other measures: the operating expense per available seat flown one mile and the revenue generated by each seat flown one mile, called A) profit per passenger. B) average price per passenger. C) internal ROI. D) unit variable sales. E) yield.
191) In a capacity management report from a well-known carrier in the airline industry, the yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. From these details, the percentage of available seats flown one mile occupied by a paying customer is________Blank. A) 9.83 B) 82.1 C) 8.28 D) 18.11 E) 1.55
Version 1
71
192) In a capacity management report from a well-known carrier in the airline industry, the yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. The revenue generated by each seat flown one mile is A) 9.83 cents. B) 82.1 cents. C) 8.28 cents. D) 18.11 cents. E) 7.99 cents.
193) In a capacity management report from a well-known carrier in the airline industry, the yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. From these details, the airline posted a(n)________Blank per available seat flown one mile. A) 9.83 cent profit B) 1.55 cent profit C) 1.27 cent profit D) 0.21 cent loss E) 8.28 cent loss
194) Assuming this information in a capacity management report from a well-known carrier in the airline industry will not change in the near future, what actions would you recommend that the carrier take? The yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. A) Proceed as in the past; the carrier is clearly profitable. B) Use advertising to let consumers know how the carrier currently meets their needs. C) Change the flight schedules to accommodate travelers’ needs and advertise these changes. D) Keep the flight schedule as it is and reduce the price per flight. E) There is not enough information in the marketing dashboard to suggest an action to take.
Version 1
72
195) Many of the changes in the services industry in the future will be driven by which of these factors? A) reverse marketing B) global development C) global service branding D) sustainability E) ethnocentricity
196) The key technological elements of future services include________Blank, autonomous vehicles, and the Internet of Things. A) distribution B) globalization C) artificial intelligence D) divergence E) convenience
197)
The key technological elements of future services include mobile communications and A) customization. B) globalization. C) convenience. D) political instability. E) autonomous vehicles.
198) Giving unauthorized free products or services to customers to inflate their customer satisfaction levels is referred to as
Version 1
73
A) BOGOs. B) Facebook liking. C) service sweethearting. D) research baiting. E) social incentivizing.
199) The trend toward sustainability and “green” business practices has expanded to include many services as they strive to A) comply with FDA rules. B) increase their energy use. C) reduce their capacity. D) shift focus to the use of resources. E) minimize consumer involvement.
200)
Marketers for the Minnesota Lynx market what basic product? A) a basketball game B) popular players C) a generic social experience D) a winning team E) a competitive spirit
201)
Which of these is an identified market segment for the Minnesota Lynx?
Version 1
74
A) 18- to 34-year-old women B) Hispanics C) all sports fans D) couples and families E) Generation Z
202)
Basketball originated in which U.S. state? A) New York B) California C) Illinois D) Massachusetts E) Louisiana
203) The Minnesota Lynx use dynamic pricing for________Blank; demand for tickets varies with their opponent, the day of the week, and whether the game is a playoff. A) off-peak pricing B) idle production capacity C) static demand D) capacity management E) inventory scarcity
204)
Which of these is an important measure of success for the Minnesota Lynx?
Version 1
75
A) social change B) International ticket sales C) arena sell-outs D) social media mentions E) merchandise sales
205) Services incorporate the four I’s of product marketing. How would each of these four elements apply to a stock brokerage service?
206) What does it mean to describe services as intangible? How do marketers of services overcome the problems associated with intangibility?
207)
What is the difference between intangibility and inseparability of services?
208) Where would potatoes, a photographic studio, and a psychologist fit into the service continuum?
Version 1
76
209)
Describe the three ways services can be classified.
210) What are the three properties of products and services that may be evaluated by consumers when they are making a purchase decision, depending on the type of product? Give an example of a product or service for each.
211)
List and define the five dimensions of service quality described in the text.
212) What is a customer contact audit? Outline the contact audit for a typical visit to your dentist.
213) What aspect of the product/service element of the marketing mix warrants special attention by service marketers?
Version 1
77
214)
What role does price play in the managing of services?
215)
What is internal marketing? Why is it important in services marketing?
216) What role do people play in the managing of services? In answering the question, discuss the concept of customer experience management (CEM).
217)
List and explain the key elements of future services.
218) How does the Minnesota Lynx team use promotion (advertising, personal selling, public relations, sales promotion, direct marketing) in its marketing program?
Version 1
78
Version 1
79
Answer Key Test name: Chap 12_16e_Kerin 1) D 2) E 3) A 4) E 5) C 6) A 7) D 8) C 9) D 10) B 11) C 12) B 13) E 14) A 15) E 16) A 17) E 18) C 19) D 20) C 21) E 22) D 23) C 24) D 25) B 26) A Version 1
80
27) B 28) C 29) E 30) D 31) C 32) D 33) D 34) A 35) C 36) B 37) E 38) B 39) C 40) D 41) B 42) E 43) D 44) E 45) E 46) D 47) D 48) D 49) E 50) B 51) E 52) A 53) A 54) C 55) A 56) C Version 1
81
57) D 58) E 59) E 60) A 61) D 62) E 63) D 64) B 65) D 66) D 67) B 68) C 69) D 70) C 71) D 72) B 73) A 74) C 75) E 76) D 77) C 78) D 79) D 80) E 81) A 82) D 83) A 84) D 85) B 86) C Version 1
82
87) B 88) D 89) E 90) B 91) D 92) C 93) D 94) A 95) A 96) B 97) B 98) D 99) C 100) E 101) C 102) D 103) B 104) E 105) D 106) B 107) E 108) D 109) C 110) C 111) B 112) C 113) A 114) C 115) E 116) A Version 1
83
117) A 118) C 119) D 120) D 121) B 122) C 123) C 124) D 125) A 126) E 127) C 128) D 129) C 130) E 131) C 132) B 133) A 134) C 135) D 136) B 137) C 138) B 139) C 140) A 141) E 142) A 143) B 144) A 145) B 146) A Version 1
84
147) D 148) C 149) E 150) B 151) C 152) E 153) D 154) C 155) C 156) A 157) D 158) D 159) C 160) B 161) D 162) B 163) D 164) A 165) E 166) E 167) A 168) D 169) B 170) D 171) E 172) A 173) C 174) C 175) D 176) B Version 1
85
177) E 178) C 179) E 180) A 181) C 182) B 183) A 184) E 185) D 186) A 187) C 188) D 189) C 190) E 191) B 192) A 193) D 194) C 195) D 196) C 197) E 198) C 199) D 200) A 201) D 202) D 203) D 204) A
Version 1
86
CHAPTER 13 1)
The largest U.S.-based TV maker is A) Sharp. B) Panasonic. C) LG. D) Sony. E) VIZIO.
2)
VIZIO is the market leader in the North American_____Blank market. A) designer eyewear B) broadcast media C) smart TV D) virtual reality gaming E) luxury travel
3)
VIZIO’s HDTVs are sold through all of these types of retailersexcept which? A) Amazon.com B) mass merchandisers, such as Target C) its own brick-and-mortar stores D) wholesale club stores such as Sam’s Club E) electronics stores such as Best Buy
4)
In order to deliver a product that the average consumer can afford, VIZIO
Version 1
1
A) handles product design and marketing in the United States and relies on contract manufacturers in other countries to build the product. B) uses mass customization in other countries and then ships the HDTVs to the United States. C) purchased a small company in China to distribute its products under the VIZIO name. D) purchased a small company in Japan to distribute its products under the VIZIO name. E) relies solely on recycled materials to build high-quality, no-frills products.
5) The_____Blank paid for products and services goes by many names, like tuition for your education, rent for an apartment, interest on a bank credit card, and a premium for car insurance. A) fee B) value C) cost D) price E) exchange rate
6)
Price is
A) the value assigned to the exchange of products and services for other products and services. B) the value judgment made by both the buyer and seller regarding an item’s worth. C) the money or other considerations exchanged for the ownership or use of a product or service. D) the value assessed for the benefits of using a product or service. E) the highest monetary value a customer is willing to pay for a product or service.
7) From a marketing viewpoint,_____Blank is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.
Version 1
2
A) value B) price C) barter D) currency E) a tariff
8)
All of these are alternate names for the price you pay on goods and servicesexcept which? A) rent B) interest C) tuition D) dues E) profit
9)
Which of these is an example of a price? A) fare B) operating costs C) liquidity D) value E) brand equity
10)
Insurance premiums, entrance fees, train fares, and organization dues are all examples of A) charges. B) countertrade. C) profit. D) price. E) currency.
Version 1
3
11)
All of these statements about price are true except which?
A) Small changes in price can have big effects on both the number of units sold and company profit. B) The price for a product or service must earn a profit for the company. C) For most products and services, there is an agreed-upon price range set by makers. D) The price must be “right”—in the sense that customers must be willing to pay it. E) The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product.
12) Susan hired an attorney to represent her in a court case involving an auto accident. The attorney charged her a $2,000 retainer fee for the services. Terry needed a haircut; the local stylist charged him $12 for his services. Aaron mowed his neighbor’s lawn; in exchange, the neighbor repaired his gutters. The attorney fees, the $12 charged by the hair stylist, and the exchange of lawn mowing for gutter repair are all examples of A) premiums. B) barter. C) the profit motive. D) price. E) outlays.
13) The practice of exchanging products and services for other products and services rather than for money is referred to as A) barter. B) reciprocal pricing. C) virtual pricing. D) balance of payments. E) value pricing.
Version 1
4
14)
Barter is
A) a reciprocity agreement stipulating that if company A purchases services from company B, then company B must purchase services of similar value from company A. B) a tying agreement stipulating that if company A purchases a good from company B, it must also purchase one of its services. C) the practice of exchanging products and services for other products and services rather than for money. D) the practice of exchanging services for products of equal or greater value. E) the practice of exchanging products and services for money.
15) Barter is the practice of exchanging products and services for other products and services rather than for A) value. B) ideas. C) promises. D) tariffs. E) money.
16) Wilkinson Sword exchanged some of its knives for advertising used to promote its razor blades. This is an example of A) barter. B) reciprocal pricing. C) virtual pricing. D) balance of payments. E) value pricing.
Version 1
5
17) A common pricing tactic today is the use of special fees and surcharges that add to a list price, a response to consumers’ zeal for_____Blank combined with the ease of making price comparisons on the Internet. A) readily accessible information B) low prices C) quality D) value E) warranties
18) fees.
According to the price equation, final price equals list price minus_____Blank plus extra
A) profits B) commissions C) trade-ins D) taxes E) allowances
19) According to the price equation, final price equals_____Blank minus allowances plus extra fees. A) salaries B) list price C) profits D) trade-ins E) taxes
Version 1
6
20) A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the final price the company will pay foreach dishwasher? A) $390 B) $400 C) $410 D) $430 E) $730
21) Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester? A) $2,500 B) $2,650 C) $3,150 D) $3,650 E) $6,150
Version 1
7
22) Suppose you want to buy a Tesla Model S, an all-electric, zero-emission car that has a 265-mile range and can be recharged in three hours. The Tesla Model S Performance model has a list price of $87,500. However, you want several options (Performance Plus Package, red multicoat armor paint, Tech Package, Sound Studio Package, home charging station, performance wheels, and others) that will cost $17,500. An extended warranty will add an additional $5,000. However, if you put $50,000 down now and finance the balance over the next year, you will receive a dealer rebate of $5,000 off the list price. The dealer will give you a $7,000 trade-in allowance for your 2016 Honda Civic DX four-door sedan. In addition, you will have to pay a state sales tax of $10,000, an auto registration fee of $1,000 to the state, and a $1,000 destination charge to ship and prep the car. But because the Tesla Model S is an alternative energy vehicle, you qualify for a $2,500 state rebate and a $7,500 federal tax credit! Finally, your total finance charge is $7,000. Applying the price equation, what is your final price for the Tesla Model S? A) $57,000 B) $68,000 C) $87,500 D) $107,000 E) $151,000
23)
The ratio of perceived benefits to price is referred to as A) the price-quality relationship. B) customer-value pricing. C) value-added pricing. D) value analysis. E) value.
24)
The ratio of_____Blank to price is referred to as value.
Version 1
8
A) prestige B) perceived benefits C) costs D) anticipated quality E) profits
25)
The ratio of perceived benefits to_____Blank is referred to as value. A) price B) prestige C) anticipated quality D) profits E) discounts
26)
To increase value the most, marketers should
A) decrease benefits. B) decrease benefits and increase price. C) decrease price and increase benefits. D) decrease price and decrease benefits. E) hold the price steady and let the perceived value of the item increase as it matures in its life cycle.
27)
To increase value, marketers may_____Blank, decrease price, or do both.
Version 1
9
A) decrease promotion B) increase benefits C) decrease distribution D) increase advertising E) allow the perceived value of the item to increase as it matures in the life cycle
28)
Which statement is most accurate?
A) For some products, price influences the perception of overall quality, and ultimately value, to consumers. B) A consumer’s view of a product’s value depends almost entirely on external assessments of quality. C) A consumer’s view of value is a function of his or her education and income. D) Price plays only a small part in a consumer’s perceived value of a product or service. E) Price plays a large role in assessing value but a very minor role in assessing quality.
29) Most consumers realize that the quality of diamonds varies, and many believe the higher the price of a diamond, the higher its quality. This is an example of price influencing the perception of overall quality and therefore_____Blank to consumers. A) acceptable cost B) perceptual investment C) barter potential D) return on investment E) value
30) When Pizza Hut announced it was going to add 25 percent more toppings to its Meat Lover’s line of pizzas without increasing prices, consumers benefited from an increase in what?
Version 1
10
A) cost B) appearance C) value D) price E) quality
31)
Value pricing is
A) the ratio of perceived benefits to price. B) the money or other considerations exchanged for the ownership or use of a product or service. C) the practice of simultaneously increasing product and service benefits while maintaining or decreasing price. D) the ratio of price to perceived benefits. E) the list price minus incentives and allowances plus extra fees.
32) The practice of simultaneously increasing product and service benefits while maintaining or decreasing price is referred to as A) value pricing. B) customer-value pricing. C) competitive pricing. D) cost pricing. E) demand pricing.
33) Marketers may engage in value pricing, which is the practice of simultaneously_____Blank while maintaining or decreasing price.
Version 1
11
A) promoting specific product and service benefits B) increasing product and service benefits C) decreasing profit D) analyzing benefits E) decreasing cost
34) A major grocery chain pays its baggers a regular hourly wage. The baggers not only pack the groceries, but they also will take customers’ groceries to their car, regardless of the weather. The baggers are not permitted to accept tips, even if they are offered. The consumer will experience this as A) pricing enhancement. B) societal pricing. C) revenue sharing. D) value pricing. E) cost-plus pricing.
35) Many cosmetology schools allow their advanced students to style hair for “real-world” clients for a reduced fee. The students benefit from the experience, the clients get a less expensive haircut, and the school provides students with additional training while generating revenue as well. The haircut pricing is an example of A) value pricing. B) societal pricing. C) revenue sharing. D) barter. E) cost-assist pricing.
36) If a McDonald’s menu board advertises Mini Meals, a small bundle of items for $3, McDonald’s is most likely using which type of pricing strategy?
Version 1
12
A) predatory pricing B) value pricing C) loss-leader pricing D) odd-even pricing E) barter
37)
A reference value involves comparing the costs and benefits of
A) substitute items. B) items of equal or greater value. C) products with which a consumer is familiar and items the consumer has not seen or used before. D) items from one particular manufacturer or distributor. E) intangible items.
38)
A reference value is developed by the consumer through A) considering the amount of time and energy a consumer puts into the purchase process. B) judging the value assigned to similar items used by the consumer’s peers. C) performing a careful break-even analysis. D) comparing the costs and benefits of substitute items. E) examining the true difference between customers’ “needs” and “wants.”
39) In the purchase of the sugar substitute Splenda, you may compare it to something you know about like real sugar. Although Splenda is more expensive than sugar, it is purchased by many consumers because it sweetens with no calories. Here, the consumer is considering
Version 1
13
A) a marginal analysis. B) a profit equation. C) a break-even analysis. D) price elasticity of demand. E) a reference value.
40) If you know the contents and price of a McDonald’s Extra Value Meal, it may serve as_____Blank to you when you visit other fast-food restaurants and consider the purchase of a meal option there. A) a marginal analysis B) a profit equation C) a reference value D) a break-even analysis E) price elasticity of demand
41)
_____Blank = (Unit price × Quantity sold) − Total cost. A) Total revenue B) Variable cost C) Net present value D) Profit E) Break-even point
42)
According to the profit equation, profit equals
Version 1
14
A) Total cost + Total revenue. B) Total revenue − Total cost. C) Marginal revenue − Marginal cost. D) Price × Quantity. E) Total revenue + Marginal cost.
43) The formula Total revenue − Total cost or [(Unit price × Quantity sold) − (Fixed cost + Variable cost)] represents A) the value equation. B) the sales ratio. C) average revenue. D) the break-even point. E) the profit equation.
44)
A firm’s profit equals A) Total cost + Total revenue or [(Fixed cost + Variable cost) + (Unit price × Quantity
sold)]. B) Total revenue − Total cost or [(Unit price × Quantity sold) − (Fixed cost + Variable cost)]. C) Total cost − Marginal cost or [(Fixed cost + Variable cost) − (Unit price × Quantity sold)]. D) Total cost − Variable cost or [(Fixed cost + Variable cost) − (Unit price × Quantity sold)]. E) Total revenue/Total cost or [(Unit price × Quantity sold) ÷ (Fixed cost + Variable cost)].
45) Calculate a firm’s profit using this information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000. Version 1
15
A) $10,000 B) $50,000 C) $110,000 D) $150,000 E) cannot be determined with the information provided
46)
Which elements are involved in Step 1 of the price-setting process? A) objectives and constraints B) estimation of demand, sales revenue, and price elasticity C) cost estimation, marginal analysis, and break-even analysis D) demand for the product class and brand, newness of the product, and competition E) market segmentation targeting, and positioning
47) Which of these would be an example of an objective in Step 1 of the price-setting process? A) We need to set an initial price of $259 per unit. B) We need to obtain a 10 percent market share. C) We need to find the least expensive distributor. D) We need to make allowances for large quantity orders. E) We need to increase the price during the holiday shopping season.
48) Which of these would be an example of an objective in Step 1 of the price-setting process?
Version 1
16
A) We need to estimate the demand for this new product. B) We can rely on our reputation to introduce this product. C) Experts are predicting a slowing global economy. D) We need to forget profits right now; just make sure we break even. E) We need to hire a professional accountant.
49) Which of these would be an example of a constraint in Step 1 of the price-setting process? A) We can rely on our reputation for our other products in the line. B) We expect to make a profit of $1.2 million. C) We need to make allowances for large quantity orders. D) We should increase the price during the holiday shopping season. E) We’re going to face some aggressive competition.
50) An analysis of a prospective product shows that sales for it are expected to grow by at least 10 percent each year over the next five years before it enters the maturity phase of its product life cycle. This type of analysis would provide useful information in which step of the price-setting process? A) identifying pricing objectives and constraints B) determining cost, volume, and profit relationships C) estimating demand and revenue D) selecting an appropriate (approximate) price lining strategy E) making special adjustments to list or quoted price
51)
Which of these represent elements of Step 2 of the price-setting process?
Version 1
17
A) constraints and objectives B) estimation of demand, sales revenue, and price elasticity C) cost estimation, marginal analysis, and break-even analysis D) demand for the product class and brand, newness of the product, and competition E) market segmentation, targeting, and positioning
52) George and Alice Renfro decided to start a family business in 1990 to produce chowchow, a Southern regional food. To determine how they would price the chowchow, the Renfros had to examine (1) the demand for the product (e.g., would people eat store-bought?); (2) the costs of the jars for and bottling of the chowchow; and (3) the cost to distribute the product to area grocery stores. The Renfros are doing which step of the price-setting process? A) identifying pricing constraints B) estimating break-even points and revenue points C) setting the list price D) selecting an approximate price level E) determining cost, volume, and profit relationships
53) Which statement would most likely be spoken by someone in the midst of estimating demand and revenue in the price-setting process? A) “It’s important to offer discounts to seniors.” B) “We have to try to achieve an 8 percent profit share.” C) “The starting price should be $4.99 and we can raise the price again in six months.” D) “But, if we increase the price even by $1, how many customers will we lose?” E) “We should probably price the extra-large version somewhere between $600 and $650.”
54) Which of these are elements of determining cost, volume, and profit relationships in the price-setting process? Version 1
18
A) objectives and constraints B) estimation of demand, sales revenue, and price elasticity C) cost estimation, marginal analysis, and break-even analysis D) demand for the product class and brand, newness of the product, and competition E) market segmentation targeting, and positioning
55) Which statement would most likely be spoken while determining cost, volume, and profit relationships in the price-setting process? A) “In order to break even, we will need to sell at least 500,000 units.” B) “We have to try to achieve an 8 percent profit share.” C) “The starting price should be $4.99 and we can raise the price again in six months.” D) “But, if we increase the price even by $1, how many customers will we lose?” E) “We should probably price the extra-large version somewhere between $600 and $650.”
56) The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn. Break-even analysis would take place during which step of the price-setting process? A) identify pricing objectives and constraints B) determine cost, volume, and profit relationships C) estimate demand and revenue D) select an approximate price level E) make special adjustments to list or quoted price
57) While pricing objectives frequently reflect corporate goals, pricing constraints often relate to
Version 1
19
A) stockholder demands. B) political ideology. C) conditions existing in the marketplace. D) an organization’s code of ethics. E) the financial realities within the organization itself.
58) to as
Specifying the role of price in an organization’s marketing and strategic plans is referred
A) choosing a pricing plan. B) defining a profit mission. C) developing pricing constraints. D) setting pricing objectives. E) determining the list or quoted price.
59)
Pricing objectives involve
A) reconciling the prices charged by an organization to the values set forth in its business mission. B) taking specific steps to capitalize on an organization’s internal strengths as they apply to price. C) specifying the role of price in an organization’s marketing and strategic plans. D) taking specific steps to compensate for an organization’s weaknesses as they apply to price. E) subjectively setting intrinsic values to all products and services offered by an organization.
60)
Which statement regarding pricing objectives is most accurate?
Version 1
20
A) Pricing objectives are similar to core values in that there is little to no change in them over time. B) Pricing objectives may change depending on the segments in which a company is doing business. C) Pricing objectives may change depending upon the cost of advertising. D) Pricing objectives are established exclusively by the marketing department. E) Pricing objectives are extremely sensitive to even the slightest change in the local economy.
61)
All of these are typical pricing objectivesexcept which? A) market share B) survival C) unit sales D) social responsibility E) monopolization
62)
A firm’s profit objective is often measured in terms of ROI. The acronym ROI stands for A) risk opportunity investment. B) revised organizational incentives. C) return on investment. D) regulated organizational investments. E) replenishment of organizational inventories.
63) Several pricing objectives relate to a firm’s profit. In one known as_____Blank, a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.
Version 1
21
A) maximizing current profit B) target return C) break-even strategy D) minimizing risk E) managing for long-run profits
64)
Managing for long-run profits as a pricing objective implies that a company will
A) give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets. B) maintain a given price range to ensure there is no loss of customers over time, even if the profit margin declines. C) invest excess cash in bonds and certificates of deposit in order to counteract any inflationary economic changes in the future. D) reinvest all profits into market research or product research rather than returned to shareholders. E) drop all products, product lines, or divisions that cannot maintain their pricing goals.
65) Three different pricing objectives relate to a firm’s profit. One objective, known as_____Blank, is common because the targets can be set and performance measured quickly, though it is sometimes criticized for its short-term orientation. A) managing for long-run profits B) target return C) break-even strategy D) maximizing current profit E) minimizing risk
66)
A maximizing current profit pricing objective implies that a company chooses to
Version 1
22
A) set targets for which performance can be measured quickly. B) give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets. C) set a profit goal that is often determined by its board of directors. D) reduce investment in any further market or product research. E) set prices based on return on sales.
67) Three different pricing objectives relate to a firm’s profit. One objective, known as_____Blank, occurs when a firm sets a profit goal, usually determined by its board of directors. A) maximizing current profit B) managing for long-run profits C) target return D) break-even strategy E) minimizing risk
68) Three different objectives relate to a firm’s profit, each of which have different implications for pricing strategy. One of these is A) accumulating profits. B) reinvesting profits. C) redistributing profits. D) maximizing gross margin. E) achieving a target return.
69)
A target return profit pricing objective implies that a company chooses to
Version 1
23
A) set targets whose performance can be measured quickly. B) give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets. C) set a profit goal that is often determined by its board of directors. D) reduce investment in any further market or product research. E) set prices based on return on sales.
70) If a firm’s profit is high enough for it to remain in business, a pricing objective may be to_____Blank, which will in turn may lead to increases in market share and profit. A) increase the commitment to social responsibility B) increase dollar sales revenue C) decrease unit volume while maintaining price D) increase research and development funding for new product line extensions E) continue with previous policies that seem to be working
71)
Which statement regarding sales goals is most accurate?
A) For marketing managers, sales revenue or unit sales objectives can be easily translated into meaningful targets for a product line or brand. B) Cutting prices for a single product in a product line to raise unit sales often results in an increase in sales for related products in the line. C) Very often, cutting prices results in a decrease in market share. D) Setting unit volume sales as a pricing objective results in price wars with competitors, so the practice is limited to industries with few competitors. E) An advantage of increasing unit volume sales is that it always results in an increase in profits.
72) The ratio of the firm’s sales revenues or unit sales to those of the industry (competitors plus the firm itself) is referred to as
Version 1
24
A) target return on sales. B) industry profit. C) unit volume. D) market share. E) profit.
73) Market share is the ratio of the_____Blank to those of the industry, including the firm itself. A) target return on sales B) marginal profit of the firm C) firm’s sales revenues or unit sales D) marketing expenses of the firm E) profits of the firm
74)
Companies often pursue a market share objective when A) industry sales are flat or declining. B) profits are increasing. C) industry sales are beginning to rise. D) there is a sudden increase in production costs. E) stockholders are seeking higher dividends.
75)
Which statement regarding a market share pricing objective is most accurate?
Version 1
25
A) A market share objective is often difficult for product managers since stockholders are looking for immediate dividends (return of profits). B) Although increased market share is a primary goal of some firms, others see it as a means to other ends, such as increased sales or profits. C) Selecting market share as a pricing objective is particularly effective if industry sales are growing. D) An advantage of market share as a pricing objective is that it is particularly insensitive to competitors’ actions. E) Ironically, a market share objective is realized by raising prices in order to increase consumer confidence during the decline stage of a product’s life cycle.
76) An online movie streaming service charges $14.99 per month for its basic package. However, when a competitor introduced the same service at $13.99, the firm dropped its price to $13.99. The firm most likely made this price reduction in an attempt to A) decrease revenue but increase profit. B) increase profit by increasing revenue. C) maintain market share. D) decrease market share. E) increase efficiency.
77) If the CEO of the Clorox Co. were to say, “We want to control 40 percent of the household bleach category within the next five years,” he would have set a_____Blank pricing objective. A) profit B) sales C) unit volume D) market share E) social responsibility
Version 1
26
78)
Unit volume as a pricing objective refers to A) the quantity of products to be produced or sold. B) the ratio of price per unit to unit variable cost. C) the ratio of production costs to the minimum sales price that would still generate
profit. D) the total quantity of product sold by a firm relative to the total quantity of product sold by all firms in the industry. E) variable cost expressed on a per unit basis for a product.
79)
A negative aspect of selecting unit volume as a pricing objective is that
A) production often cannot keep up with demand. B) there are increased carrying costs with extensive inventories. C) if price reductions are used to achieve volume objectives, it can sometimes come at the expense of profits. D) it can create competition between divisions within the organization itself, causing conflicts over the allocation of resources. E) it always positively correlates with a sales revenue objective.
80) Some firms pursue a_____Blank pricing objective, perhaps using discounting to generate cash to stave off bankruptcy. A) market share B) survival C) sales revenue D) single product line E) profit
Version 1
27
81) RadioShack, an electronics retail chain, couldn’t compete with the prices offered by other retailers. The company enacted price matching programs and promoted large discounts on its merchandise to increase revenues and prevent bankruptcy. The best pricing objective at this point for RadioShack most likely was A) profit. B) market share. C) unit volume. D) survival. E) social responsibility.
82) A firm may forgo a higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations? A) profit B) market share C) unit volume D) survival E) social responsibility
83)
Factors that limit the range of prices a firm may set are referred to as A) pricing boundary conditions. B) pricing constraints. C) demand factors. D) pricing margins. E) pricing restrictions.
84)
Pricing constraints are
Version 1
28
A) barriers that must be overcome in order to set pricing objectives. B) competitive pricing advantages one firm has over another. C) different pricing strategies for each of the firm’s products. D) factors that limit the range of prices a firm may set. E) barriers to entry a firm faces when launching a new product.
85)
All of these are examples of pricing constraintsexcept which? A) cost of producing the product B) competitors’ prices C) newness of the product D) break-even point E) demand for the product class, product, or brand
86)
Which statement about consumer demand as a pricing constraint is most accurate?
A) The price charged by competitors for similar offerings has little effect on the price a seller can charge unless there are very few potential buyers. B) The number of potential buyers for the product affects the price a seller can charge, but only if the product is using a push strategy in the channel. C) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a necessity item. D) The number of potential buyers for the brand affects the price a seller can charge in the growth stage of a product life cycle, but not in the introductory stage. E) The number of potential buyers generally affects the price a seller can charge.
87)
Which statement regarding pricing constraints is most accurate?
Version 1
29
A) Generally, the greater the demand for a product, the higher the price that can be set. B) At the corporate level, when setting pricing constraints, a firm must disregard current conditions in the marketplace because they are too temporal for long-term planning. C) Pricing constraints must always be set, but they are rarely enforced. D) It is possible to create pricing constraints with the greatest range possible in order to anticipate any and all changes in the marketing environment. E) Even if a firm is trying to satisfy its obligations to its customers and society in general, it should ignore setting pricing constraints.
88)
The newer a product and the earlier it is in its life cycle, A) the lower the price the firm must charge. B) the more competition it has. C) the higher the price that can usually be charged. D) the lower its production costs are. E) the lower its unit variable cost is.
89)
Which statement about the product life cycle as a pricing constraint is most accurate?
A) The newer a product is, the higher the price that can usually be charged. B) The later in the product life cycle a product is, the higher the price that can usually be charged. C) Once a product is considered nostalgic, the price will continue to rise indefinitely. D) Fads will generally have only two price points—high and low—but the values of those price points usually will be within 10 percent of each other. E) Prices should not be changed until a product reaches its maturity stage.
90)
Which statement regarding pricing constraints is most accurate?
Version 1
30
A) When a product is in the introductory stage of the product life cycle, the initial price must be low since consumers don’t know what the product can do. B) Patents and limited competition earlier the product life cycle mean that higher prices can usually be charged for new products. C) The greater the number of products in a company’s product line, the less the product features of similar products can affect price. D) The newest addition to a company’s product line should always have the highest price in order to maintain the value of existing brands. E) To avoid cannibalization, the newest product addition to a company’s product line should never have a price lower than the other offerings in the line.
91)
Occasionally, prices may rise later in the product’s life cycle. This is often due to A) new competitors entering the market. B) production economies of scale. C) a decrease in the price of raw materials. D) nostalgia and fad factors. E) the type of competitive market shifts from pure monopoly to pure competition.
92) At one point, people were willing to pay hundreds of dollars on eBay for a Beanie Baby toy that originally cost a small fraction of that. Today, those same Beanie Babies can be found at garage sales for less than a dollar apiece. This is most likely due to A) faulty craftsmanship in later production batches. B) a sharp downturn in the economy. C) the new, more nostalgic fad of bobblehead dolls. D) too many counterfeit Beanie Babies entering the country. E) a product becoming a fad and then losing its fad appeal.
93)
Which statement about pricing is most accurate?
Version 1
31
A) Nonprofit organizations are exempt from having to cover the costs of producing and/or marketing their products. B) Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products, but they should not price their products to earn a profit. C) Marketers must ensure that firms in their channels of distribution make an adequate profit or they will be cut off from their customers. D) Price elasticity of demand makes it virtually impossible for companies to cover all their marketing and production costs at all times. E) Marketing and production costs are the most difficult and expensive aspect of pricing because they draw so much capital away from other departments in the organization.
94)
Which statement is true about a pair of $200 designer denim jeans?
A) The manufacturer’s labor to make them comprises the largest percentage of the final price, with other channel members clamoring over a mere 10 percent. B) Everyone should get a fair cut of the final price; the marketer will be cut off from the customer unless all channel members are profitable. C) The specialty retailers that sell them account for only 25 percent of the cost so that the jeans can benefit from demand pull. D) The final price is only this high when there is a lack of competition among cotton producers or other suppliers. E) The marketer of the designer denim jeans typically is not profitable for products like these.
95)
Which statement regarding price changes is most accurate?
Version 1
32
A) Prices for tangible goods should change monthly, whereas service prices should change quarterly. B) Changing a product’s price too frequently creates antagonism among consumers, yet changing prices too infrequently makes them feel the company is not improving its product sufficiently. C) Supermarkets should change their prices every week since customers are expecting new prices in the weekly flyers they receive in the mail. D) Companies selling products online can instantly change their prices whenever the need arises. E) Internet price changes are regulated by the Internet Fair Practices Act to protect consumers against price gouging.
96) Apple’s iPhone was originally a single model in a product line targeted at high-end users. However, lower-cost rival smartphones soon entered the market and Apple began to market multiple offerings itself. Here, Apple faces A) the inability to change prices quickly. B) speeding up the diffusion of innovation process. C) brand extension confusion. D) charging a lower price to gain a foothold in the market. E) the challenge of pricing multiple products in an expanding product line.
97) During the iPad’s_____Blank stage of its product life cycle, Apple had great latitude in setting a price for the product because of a lack of competition. A) decline B) maturity C) growth D) accelerated development E) introduction
Version 1
33
98)
Which statement regarding the seller’s price is most accurate?
A) Internet price changes are regulated by the Internet Fair Practices Act to protect consumers against price gouging. B) The seller’s price is constrained by the type of competitive market within which it competes. C) Price changes cannot be regulated in a monopoly. D) The type of market has little or no impact on a firm in a monopolistic competitive environment. E) Competitive environments should affect a firm’s pricing objectives, but not its actual product prices.
99) Most public utilities must petition regulatory commissions in order to obtain a rate increase. Which pricing constraint does this demonstrate? A) demand for the product, class, or brand B) newness of product in the life cycle C) costs of production D) type of competitive market E) single product versus a product line
100)
Economists have identified four types of competitive markets, which are A) capitalistic, monopolistic, socialist, and communist. B) pure monopoly, monopolistic competition, oligopoly, and pure competition. C) free market, restrained market, government-regulated, and command economy. D) market economy, command economy, traditional economy, and controlled economy. E) open market, consumer-dominated market, service market, and product market.
Version 1
34
101) Economists have identified four types of competitive markets: pure monopoly, monopolistic competition, oligopoly, and A) pure competition. B) government-dominated. C) capitalist. D) socialist. E) communist.
102)
Frommost competitive toleast competitive, the types of competitive markets are A) monopolistic competition, pure monopoly, pure competition, and oligopoly. B) pure competition, monopolistic competition, oligopoly, and pure monopoly. C) pure competition, monopolistic competition, pure monopoly, and oligopoly. D) oligopoly, pure competition, monopolistic competition, and pure monopoly. E) pure monopoly, pure competition, oligopoly, and monopolistic competition.
103) The particular type of competition in a product category dramatically influences the range of price competition and, in turn, A) the nature of product differentiation and extent of advertising. B) the nature of product differentiation and requirements for on-hand inventory. C) the degree of involvement with each of the organization’s stakeholders. D) the degree of involvement with both retailers and wholesalers. E) the relationship between product lines and product classes.
104) The competitive market situation in which many sellers follow the market price for identical, commodity products is referred to as
Version 1
35
A) a pure monopoly. B) an oligopoly. C) monopolistic competition. D) pure competition. E) oligopolistic competition.
105)
Pure competition is the competitive situation in which A) many sellers follow market price for identical, commodity products. B) one seller sets the price for a unique product. C) few sellers are sensitive to one another’s prices. D) many sellers compete on nonprice factors. E) one or few sellers compete solely on nonprice factors.
106) If competitive market circumstances are such that there is almost no price competition, no product differentiation, and the only advertising informs prospects that the product is available, then the competitive market in this industry must be A) a pure monopoly. B) pure competition. C) an oligopoly. D) monopolistic competition. E) monopolistic oligopoly.
107) The marketplace sets the price for wheat, so farmers who are trying to sell their wheat crops do not need a pricing strategy and do just a little advertising when a crop comes in. The wheat is sold in a(n)_____Blank type of competitive market.
Version 1
36
A) oligopoly B) pure monopoly C) pure competition D) monopolistic competition E) monopolistic oligopoly
108) The competitive market situation in which many sellers compete on nonprice factors is referred to as A) a pure monopoly. B) an oligopoly. C) pure competition. D) monopolistic competition. E) monopolistic oligopoly.
109) In which type of industry would a marketing director be most likely to say, “Our ad needs to let the customer know that our product is the only one that comes with its own tracking device”? A) pure monopoly B) oligopoly C) pure competition D) monopolistic oligopoly E) monopolistic competition
110) There are more than 100 companies that manufacture natural and artificial flavorings used to enhance the taste of food before it is sold to consumers. Some of these manufacturers differentiate themselves from the competition in their advertising by specializing in one or two types of foods for which they provide flavorings. Others use their distribution strategies as a means of differentiating themselves. This industry is most likely an example of
Version 1
37
A) pure monopoly. B) oligopoly. C) monopolistic competition. D) bilateral monopoly. E) monopolistic oligopoly.
111) Dozens of regional, private brands of peanut butter compete with national brands like Skippy and Jif. This industry is an example of A) pure monopoly. B) oligopoly. C) monopolistic competition. D) bilateral monopoly. E) monopolistic oligopoly.
112) The competitive market situation in which the few sellers are sensitive to each other’s prices is referred to as A) pure monopoly. B) oligopoly. C) monopolistic competition. D) pure competition. E) oligopolistic competition.
113)
An oligopoly is a competitive market situation in which
Version 1
38
A) many sellers follow market price for identical, commodity products. B) one seller sets the price for a unique product. C) few sellers compete, and are sensitive to one another’s prices. D) many sellers compete on nonprice factors. E) one or few sellers compete solely on nonprice factors.
114) If competitive market circumstances are such that there are few sellers who are sensitive to each other’s prices, and the purpose of advertising is to inform but avoid price competition, then_____Blank must exist in the industry. A) a pure monopoly B) monopolistic competition C) pure competition D) an oligopoly E) oligopolistic competition
115) All of these statements are true about an oligopolistic competitive market situationexcept which? A) The products can be differentiated or undifferentiated. B) Advertising that uses comparative (head-to-head) messages is the norm. C) The purpose of advertising is to inform. D) Sellers try to avoid price competition, which can lead to price wars. E) Firms in these markets stay aware of a competitor’s price cuts or increases and may follow suit.
116) There are four major cereal brands—Kellogg’s, Quaker, General Mills, and Post—that seem to occupy most of the shelf space in a typical grocery store. These cereals are all priced about the same. There is a good deal of product differentiation, from characters to different health claims. The cereal industry is an example of what type of competitive market? Version 1
39
A) a pure monopoly B) monopolistic competition C) pure competition D) monopolistic oligopoly E) an oligopoly
117) Microsoft, Sony, and Nintendo are the three principal firms in the video game console market. How much price competition is likely for video game makers? A) There is almost none; the market sets the price. B) There is vigorous competition and common price wars to drive small competitors out. C) There is generally a price leader that sets the price. D) Each firm is aware of each other’s prices and may adjust prices accordingly. E) Price is set by the seller but regulated by the government.
118) The competitive market situation in which one seller sets the price for a unique product is referred to as A) pure monopoly. B) oligopoly. C) monopolistic competition. D) pure competition. E) monopolistic oligopoly.
119)
Pure monopoly is the competitive market situation where
Version 1
40
A) many sellers follow market price for identical, commodity products. B) one seller sets the price for a unique product. C) few sellers compete, and are sensitive to one another’s prices. D) many sellers compete on nonprice factors. E) one or a few sellers compete solely on nonprice factors.
120) If competitive market circumstances are such that there is no price competition, no product differentiation, and the purpose of advertising is to increase demand for the product class, then_____Blank must exist in the industry. A) an oligopoly B) monopolistic competition C) a pure monopoly D) pure competition E) oligopolistic competition
121) Florida Power & Light, an electric power company, is the only source of electricity for consumers in most parts of the Florida panhandle. The company is a(n)_____Blank, despite the fact that it must seek approval from the state utility commission for the rates it can charge. A) free enterprise firm B) oligopoly C) monopolistic competitor D) competitor in a pure competition E) pure monopoly
Version 1
41
122)
In Figure 13-3, column A represents which type of competitive market?
A) an oligopoly B) monopolistic competition C) a pure monopoly D) pure competition E) oligopolistic competition
123)
In Figure 13-3, column B represents which type of competitive market?
Version 1
42
A) an oligopoly B) monopolistic competition C) a pure monopoly D) pure competition E) oligopolistic competition
124)
In Figure 13-3, column C represents which type of competitive market?
A) an oligopoly B) monopolistic competition C) a pure monopoly D) pure competition E) oligopolistic competition
Version 1
43
125)
In Figure 13-3, column D represents which type of competitive market?
A) an oligopoly B) monopolistic competition C) a pure monopoly D) pure competition E) oligopolistic competition
126) Companies must know or anticipate what specific prices its present and potential competitors currently charge A) or may charge in the near future. B) only when these are considered permanent prices. C) primarily if they intend to compete on price rather than a form of differentiation like customer service. D) primarily if they intend to target price-sensitive target markets. E) if there are legal requirements for pricing in their industry.
127) and
Competitors’ prices are important only if a prospective buyer knows about those prices
Version 1
44
A) can act to purchase them easily. B) there is an oligopoly in the industry. C) is part of a price-sensitive market segment. D) the product is at the maturity stage of the product life cycle. E) is likely to spread information via word-of-mouth.
128)
All of these are problematic pricing practicesexcept which? A) geographical pricing B) predatory pricing C) price matching D) price fixing E) deceptive pricing
129) Basic to setting a product’s price is the extent of_____Blank. This information is used in estimating the revenues the firm expects to receive. A) management’s commitment to the product relative to other products in the line B) the product line into which it will be introduced C) customer demand for it D) the firm’s promotional budget E) distribution requirements
130)
Marketing executives must translate estimates of customer demand into estimates of
Version 1
45
A) human and other resources required. B) advertising expenditures that will be required. C) ancillary product support. D) revenues the firm expects to receive. E) supply with a demand curve.
131)
A demand curve is a graph that relates
A) the quantity sold and price, which shows the maximum number of units that will be sold at a given price. B) revenues and costs, which shows the minimum number of units that must be sold to break even. C) the quantity sold and revenues, which shows the minimum number of units that must be sold in order to make a profit. D) total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit. E) primary demand to selective demand, which shows the growth of the market compared to change in market share.
132)
The maximum quantity of products consumers will buy at given price is shown by a A) demand curve. B) price constraint. C) break-even point. D) supply curve. E) marginal revenue curve.
133)
The horizontal axis of a demand curve graph represents
Version 1
46
A) market growth rate. B) relative market share. C) price per unit. D) potential profit in dollars. E) quantity demanded.
134)
The vertical axis of a demand curve graph represents A) market growth rate. B) relative market share. C) price per unit. D) potential profit in dollars. E) quantity demanded.
135)
A demand curve graph typically appears as
A) a parabola with the apex representing the highest price that can be charged without losing customers. B) a diagonal line going from upper left to lower right demonstrating that as price goes down, demand goes up. C) an inverted parabola with the lowest point representing the lowest price that can be charged and still meet the company’s profit objectives. D) a diagonal line going from lower left to upper right demonstrating that as prices go up, demand goes up proportionately. E) two intersecting lines that identify the point at which supply and demand are exactly the same.
136) Factors that determine consumers’ willingness and ability to pay for products and services are referred to as
Version 1
47
A) supply factors. B) demand factors. C) affordability factors. D) elasticity factors. E) macro environmental factors.
137)
Demand factors are the A) various competitors that provide a substitutable product or service. B) price levels that should be charged for a given product. C) elements that determine consumers’ willingness and ability to pay for products. D) various groups of consumers who want to purchase a product. E) various groups of consumers who can purchase a product.
138)
All of these are demand factorsexcept which? A) the price of similar products B) consumer tastes C) consumer income D) the availability of similar products E) the form of promotion
139) When estimating demand, price is not the only factor to be considered. Three other elements are emphasized by economists, one of which is
Version 1
48
A) consumer tastes. B) legislative changes. C) size of the target market. D) current political stability. E) promotional methods.
140) While consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines A) where they buy. B) the degree of brand loyalty. C) the degree of repeat purchase. D) what they can buy. E) their likelihood of spreading positive word-of-mouth.
141)
Which statement about the factors that influence demand is true? A) As the availability of close substitutes increases, the demand for a product increases. B) As real consumer income increases, the demand for a product increases. C) As the price of close substitutes increases, the demand for a product declines. D) Changing consumer tastes have little impact on the demand for a product. E) As real consumer income decreases, the demand for a product increases.
142) When it was launched, the BMW Streetcarver was the only skateboard with stabilizers and wheel design based on BMW’s automobiles. This technology gave the BMW Streetcarver better control at high speeds and around sharp turns than any other brand. The skateboard was priced at $495, which left many consumers (especially young males) who might have wanted to buy the Streetcarver unable to afford it. This inability to pay for the high-priced BMW-made skateboard shows the effect of_____Blank on sales.
Version 1
49
A) demand factors B) macroeconomic environmental factors C) barter factors D) supply factors E) exchange parameters
143) Mrs. Renfro’s, Inc., sells 25 different relishes in 45 states. Mrs. Renfro’s chipotle corn salsa is so popular that the company cannot make enough to keep its resellers stocked. Its price of $4.50 for a jar seems just right to consumers who savor its hot and spicy taste. The popularity of hot and spicy food is an example of a_____Blank that Mrs. Renfro’s has taken advantage of to make its product a success. A) barter factor B) demand factor C) supply factor D) consumer index E) macroeconomic environmental factor
144) A movement along a demand curve (up or down) for a product occurs_____Blank, assuming that other factors such as consumer tastes, price and availability of substitutes, and consumer incomes remain unchanged. A) when its price is lowered or increased and the quantity demanded for it correspondingly increases or decreases B) when its demand is lowered or increased and the price offered for it correspondingly increases or decreases C) when its demand and price are lowered D) when its demand and price are increased E) at the break-even point
Version 1
50
145) Figure 13-4A shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1, the quantity demanded
Figure A) increases from 2 to 3 million units per year. B) decreases from 3 to 2 million units per year. C) stays the same. D) increases from 6 to 8 million units per year. E) decreases from 8 to 6 million units per year.
Version 1
51
146) Figure 13-4A shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1, the profit
A) increases from 6 to 8 million units per year. B) decreases from 8 to 6 million units per year. C) stays the same. D) increases from $2 to $3 per unit. E) cannot be determined; demand curves do not show a relationship to profit.
147)
Which of these illustrates movement along the demand curve? A) Demand increases due to a drop in price. B) Demand increases due to a competitor leaving the market. C) Demand increases due to consumer tastes changing. D) Demand increases due to a competitor increasing its prices. E) Demand increases due to an increase in consumer incomes.
Version 1
52
148) In Figure 13-4B below, the demand curve shifts from D1 to D2. This most likely represents
A) an increase in demand resulting from advertising causing more people to want Red Baron Pizza. B) an increase in demand that required a decrease in price. C) no change in price and no change in demand. D) no change in demand or price but a greater profit due to economies of scale. E) a decrease in price from $8 to $6 per unit.
Version 1
53
149)
A shift of the demand curve from D1 to D2 in Figure 13-4B below indicates
A) fewer units are demanded at the given price. B) more units are demanded at the given price. C) the price has decreased. D) the price has increased. E) there is not enough information given to indicate what happened.
Version 1
54
150) Which of these would most likely account for the shift in the demand curve from D1 to D2 shown in Figure 13-4B below?
A) The firm increased its prices and consumers perceived the value of the product to be greater. B) There were more product substitutes available in the marketplace. C) Competitors in the market lowered their prices. D) A recession occurred that lowered consumers’ incomes. E) The product became trendy among members of its target market.
151)
Which of these best illustrates a shift in the demand curve? A) When prices remain the same, there is a significant change in supply. B) As the price is raised, the quantity demanded increases, assuming all else stays the
same. C) When prices remain the same, there is an increase or decrease in demand. D) As the price is lowered, the quantity demanded decreases, assuming all else stays the same. E) An internal matter has forced a price change of some type, but it does not impact demand.
Version 1
55
152) The percentage change in quantity demanded relative to the percentage change in price is referred to as A) price elasticity of demand. B) demand derivative of price. C) average demand. D) marginal revenue. E) derived demand.
153)
Price elasticity of demand is expressed as A) E = Percentage change in price ÷ Percentage change in quantity demanded. B) E = Price ÷ Quantity demanded. C) E = Percentage change in quantity demanded ÷ Percentage change in price. D) E = Quantity demanded ÷ Price. E) E = Quantity demanded × Price.
154)
For the sake of simplicity and by convention, price elasticity figures are shown as A) positive numbers (0.64, 1.25, etc.). B) negative numbers (−0.64, −1.25, etc.). C) Greek letters (∑, ∏, etc.). D) Roman numerals (I, V, X, etc.). E) English consonants (P, Q, R, etc.).
155)
Elastic demand exists when
Version 1
56
A) a small percentage decrease in price produces a smaller percentage increase in quantity demanded. B) a small percentage decrease in price produces a larger percentage increase in quantity demanded. C) an increase in price causes a larger increase in quantity demanded. D) the quantity demanded remains the same regardless of level of price. E) no change in price produces a small percentage change in quantity demanded.
156)
Which statement about price elasticity of demand is most accurate?
A) The more substitutes a product has, the more likely it is to be price elastic. B) All products show some price inelasticity. C) Nondiscretionary (necessary) purchases are price elastic. D) With inelastic demand, reducing price has a very large impact on revenues. E) With inelastic demand, manufacturers change prices frequently to capitalize on consumer behavior.
157)
Demand for a product is likely to be more price elastic if it A) is considered a necessity. B) has many substitutes. C) is at the mature stage of the product life cycle. D) requires a small cash outlay. E) is nondiscretionary.
158)
In a snack vending machine, consumers can select one of many choices. These snacks are
Version 1
57
A) an ideal example of unitary demand. B) likely to have a price elasticity equal to 1. C) more likely to be price elastic. D) likely to have a price elasticity less than 1. E) more likely to be price inelastic.
159) Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in an increase in quantity demanded of about 10 percent. The demand for latex gloves is A) synergistic. B) inelastic. C) unitary. D) elastic. E) static.
160)
Inelastic demand exists when
A) a small percentage decrease in price produces a smaller percentage increase in quantity demanded. B) a small percentage increase in price produces a larger percentage increase in quantity demanded. C) an increase in price is impossible due to government restrictions. D) the quantity demanded remains the same regardless of any changes in marketing strategies. E) a small percentage decrease in price produces a smaller percentage increase in quantity supplied.
161) If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by
Version 1
58
A) lowering its price. B) increasing fixed costs only. C) increasing variable costs only. D) increasing both fixed and variable costs. E) raising its price.
162) Recently, much of the western United States experienced drought conditions and water usage restrictions were considered in Denver. In an attempt to shore up reserves, the water company raised water prices. However, the residents of Denver did not use less water. Here, water demand is A) elastic. B) sensitive. C) inelastic. D) insensitive. E) unitary.
163)
Products such as disposable diapers usually have A) elastic demand. B) null elasticity. C) unitary demand. D) inelastic supply. E) inelastic demand.
164) Price elasticity of demand is determined by a number of factors, such as the availability of substitutes, the necessity of the product or service, and the
Version 1
59
A) cash outlay of the purchase relative to a person’s disposable income. B) stage of the product or service in its product life cycle. C) degree of carrying costs for the manufacturer or distributor. D) financial resources of the organization itself. E) ability of the organization to meet sudden increases in demand.
165)
The total money received from the sale of a product is referred to as A) profit. B) total revenue. C) average revenue. D) marginal revenue. E) derived demand.
166)
Total revenue is the A) profit made from selling a product or service. B) net gain in sales if the unit price is lowered. C) least number of units sold needed to cover product, distribution, and promotional
costs. D) amount at which marginal costs exceed fixed costs. E) total money received from the sale of a product.
167) SHAPE magazine is targeted at young women seeking healthier lifestyles. At a price of $3 per copy, 1.25 million copies are sold. If the price per issue is increased to $3.25, only 1 million copies would be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. From the information provided here, what isSHAPE magazine’s total revenue obtained at the lower $3 price?
Version 1
60
A) $3,750,000 B) $3,250,000 C) $3,000,000 D) $2,125,000 E) $1,750,000
168) Forever Quilting is a small company that makes quilting kits priced at $120 each. There is no quantity discount. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Last month the company sold 150 kits. Forever Quilting’s total revenue for the month was A) $4,300. B) $6,200. C) $7,500. D) $10,500. E) $18,000.
169) The total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost, is referred to as A) overhead cost. B) total cost. C) unit cost. D) average cost. E) marginal cost.
170)
Total cost refers to the
Version 1
61
A) sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. B) change in expenses that results from producing and marketing one additional unit of a product. C) average amount of money received for selling one unit of a product or simply the price of that unit. D) sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. E) total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost.
171)
Fixed cost is the
A) sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. B) total expense incurred by a firm in producing and marketing a product, which equals the sum of overhead cost and variable cost. C) sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. D) average amount of money received for selling one unit of a product or simply the price of that unit. E) change in expenses that results from producing and marketing one additional unit of a product.
172) The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as A) fixed cost. B) total cost. C) variable cost. D) sunk cost. E) overhead cost.
Version 1
62
173)
Rent, executive salaries, and insurance are typical examples of A) variable costs. B) fixed costs. C) unit costs. D) marginal costs. E) total costs.
174)
Which of these is a typical example of a fixed cost? A) taxes B) raw materials C) sales commissions D) executive salaries E) hourly wages
175) Which of these would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas? A) the lithium batteries that are used in each monitor B) the chest harness used to wear the monitor C) the insurance for the company’s factory D) the free training videos that are sent to each new customer E) the stainless-steel, water-resistant cases in which the monitors are stored
176)
Variable cost is the
Version 1
63
A) sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. B) sum of the expenses of the firm that change with the quantity of a product that is produced and sold. C) total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and marginal cost. D) average amount of money received for selling one unit of a product or simply the price of that unit. E) change in total cost that results from producing and marketing one additional unit of a product.
177) The sum of the firm’s expenses that change with the quantity of the product that is produced and sold is referred to as A) fixed cost. B) total cost. C) marginal cost. D) unit cost. E) variable cost.
178)
Which of these is a typical example of a variable cost? A) shipping costs B) rent on a building C) executive salaries D) insurance premiums E) leases on delivery trucks
179)
Unit variable cost refers to variable cost expressed
Version 1
64
A) as the sum of all units sold. B) on a per unit basis for a product. C) as a percentage of total sales. D) as a percentage of fixed costs. E) as a percentage of total costs.
180)
The unit variable cost (UVC) equals variable cost (VC) divided by A) quantity (Q). B) fixed costs (FC). C) total cost (TC). D) total revenue (TR). E) price per unit of the product (P).
181) Forever Quilting makes quilting kits priced at $120. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Forever Quilting’s unit variable cost for its kits is A) $5. B) $45. C) $50. D) $120. E) $170.
182)
Contribution margin can be expressed on a per unit basis as the
Version 1
65
A) sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. B) sum of the expenses of the firm that change with the quantity of a product that is produced and sold. C) difference between unit selling price and unit variable cost. D) average amount of money received for selling one unit of a product or simply the price of that unit. E) change in total cost that results from producing and marketing one additional unit of a product.
183) The difference between unit selling price and unit variable cost expressed on a unit basis is referred to as A) fixed cost. B) break-even point. C) contribution margin. D) unit cost. E) total variable cost.
184) Unit variable cost divided by unit selling price times 100 is the contribution margin expressed A) as the sum of all units sold. B) on a per unit basis for a product. C) as a percentage. D) as a total of fixed costs. E) as a total of all costs.
185)
The unit variable cost (UVC) divided by selling price (P) is
Version 1
66
A) contribution margin (CM). B) fixed costs (FC). C) total cost (TC). D) total revenue (TR). E) price per unit of the product (P).
186)
Break-even analysis is
A) a process that investigates the difference between marginal revenue and marginal cost. B) a method of determining just how much a consumer is willing to pay for a product or service. C) a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. D) the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm. E) the graph that shows the maximum number of products consumers will buy at a given price.
187) A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as A) break-even analysis. B) marginal analysis. C) sensitivity analysis. D) market analysis. E) tipping point analysis.
188)
The quantity at which total revenue and total cost are equal is referred to as
Version 1
67
A) the tipping point. B) the profitability point. C) incremental return on investment. D) the break-even point. E) sustainability.
189)
The break-even point (BEP) = [Fixed cost ÷ (Unit price −_____Blank)]. A) Total cost B) Total expense C) Marginal revenue D) Unit variable cost E) Total number of units produced or quantity
190)
The break-even point (BEP) = [_____Blank ÷ (Unit price − Unit variable cost)]. A) Total cost B) Total expense C) Fixed cost D) Unit variable cost E) Total number of units produced or quantity
191)
The break-even point (BEP) = [Fixed cost ÷ (_____Blank − Unit variable cost)]. A) Total cost B) Total expense C) Fixed cost D) Unit variable cost E) Unit price
Version 1
68
192) The owner of a small restaurant that sells takeout fried chicken and biscuits each month pays $2,500 in rent, $500 in utilities, $750 interest on his loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many buckets of chicken does the restaurant need to sell to break even each month? A) 442 buckets B) 764 buckets C) 1,050 buckets D) 3,150 buckets E) 4,200 buckets
193) Each month, the owner of a car wash pays $2,500 in rent, $500 in utilities, $750 interest on the business loan, an insurance premium of $200, and $250 on advertising on local bus routes. A full-service car wash is priced at $10.50. Unit variable costs for the car wash are $7.50. At what level of revenue will the car wash break even? A) $4,200 B) $10,500 C) $14,700 D) $30,000 E) $39,900
194) You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt. The labor cost is $5 per shirt. The administrative costs of operating the company are estimated to be $60,000 annually, and the sales and marketing expenses are $20,000 a year. Additionally, the cost of materials will be $10 per shirt. What is the break-even quantity?
Version 1
69
A) 2,000 shirts B) 3,200 shirts C) 5,334 shirts D) 8,000 shirts E) 16,000 shirts
195) Tim Marlow, the owner of The Clock Works, wanted to know how many clocks he must sell in order to cover his fixed cost at a given price. Marlow knew that he had total fixed costs of $20,000 for equipment, taxes, and a bank loan. He also had a unit variable cost of $20 per clock for labor and materials. If the price Marlow charges for each of his clocks is $40, what is his break-even point quantity? A) 100 clocks B) 334 clocks C) 500 clocks D) 1,000 clocks E) 10,000 clocks
196) Ampro-Mag makes materials for safely controlling hazardous spills of all kinds. It sells these items as a neutralizing kit priced at $100. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in trade journals, and $3,500 for the monthly salary of its owner. What is Ampro-Mag’s monthly break-even point in terms of number of neutralizing kits sold? A) 40 kits B) 52 kits C) 104 kits D) 116 kits E) 520 kits
Version 1
70
197) The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity, price, revenue, cost, and profit scenarios shown in Figure 13-6. What is the break-even point quantity for her picture frame store?
A) 0 B) 400 C) 800 D) 1,200 E) 2,000
198) The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity, price, revenue, cost, and profit scenarios shown in Figure 13-6. Of the following options, at what sales level is profit maximized?
Version 1
71
A) 0 B) 400 C) 800 D) 1,200 E) 2,000
199) A graphic presentation of the break-even analysis that shows the intersection of total revenue and total cost to identify profit or loss for a given quantity sold is referred to as a(n) A) Gantt chart. B) demand curve. C) ROI analysis. D) cross-tabulation. E) break-even chart.
200)
A break-even chart is a graphic presentation
A) that shows the maximum number of units that will be sold at a certain price. B) of a break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold. C) that relates variable costs in terms of product or service substitutes in order to determine which items or services would least affect total revenues. D) that relates profits and revenues versus total costs in order to determine the time frame in which a company could achieve profitability. E) of a form of scatter graph used to identify specific activities or items that are creating the greatest return on investment.
Version 1
72
201)
Figure 13-7 depicts a
A) Gantt chart. B) demand curve. C) break-even chart. D) ROI analysis. E) cross-tabulation.
Version 1
73
202)
In the break-even chart in Figure 13-7, point A identifies the firm’s _____Blank point.
A) loss B) price C) margin D) profit E) break-even
203)
In the break-even chart in Figure 13-7, the wedge BAC represents the firm’s
Version 1
74
A) fixed costs. B) break-even point. C) loss. D) profit. E) total revenue.
204)
In the break-even chart in Figure 13-7, the rectangular area EBCD represents the firm’s
A) fixed costs. B) break-even point. C) variable costs. D) profit. E) total revenue.
Version 1
75
205)
In the break-even chart in Figure 13-7, the triangular area FBE represents the firm’s
A) fixed costs. B) break-even point. C) variable costs. D) profit. E) total revenue.
206)
In the break-even chart in Figure 13-7, the triangular area GAF represents the firm’s
Version 1
76
A) fixed costs. B) break-even point. C) variable costs. D) profit E) total revenue.
207)
In the break-even chart in Figure 13-7, the line CG represents the firm’s
A) fixed costs. B) break-even point. C) variable costs. D) profit. E) total revenue.
Version 1
77
208) The break-even chart for a picture frame store in Figure 13-7 shows that by selling 200 pictures, the store will
A) break even. B) earn a profit. C) incur a loss. D) have no fixed costs. E) have no variable costs.
Version 1
78
209) Suppose you are the owner of a picture frame store. Assume that the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). According to Figure 13-7, how much profit will your picture frame store make if it sells 400 picture frames?
A) $48,000 B) $32,000 C) $16,000 D) $0 E) ($32,000)
Version 1
79
210) The break-even chart for a picture frame store in Figure 13-7 shows that by selling 800 pictures, the store will
A) break even. B) earn a profit. C) incur a loss. D) have no fixed costs. E) have no variable costs.
211) Suppose you are the owner of a picture frame store and you wish to calculate how many pictures you must sell to cover your fixed and variable costs at a given price. Demand for pictures is strong, so the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). What is the quantity of picture frames you will need to sell to break even? A) 200 picture frames B) 400 picture frames C) 800 picture frames D) 1,600 picture frames E) 2,000 picture frames
Version 1
80
212) Suppose you are the owner of a picture frame store and you wish to calculate how many frames you must sell to cover your fixed and variable costs at a given price. Let’s assume that the demand for your frames is strong, so the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). If your picture frame store sold 2,000 picture frames, what would your profit (or loss) be? A) a loss of $32,000 B) $0 C) $32,000 profit D) $112,000 profit E) $128,000 profit
213) You are president of an electric appliances manufacturer. You want to reduce your breakeven quantity. All things being equal, you can do this by A) increasing the quantity sold, while keeping price unchanged. B) reducing marginal revenue. C) reducing unit variable cost. D) increasing fixed cost. E) increasing total cost.
214) Assuming there is no change in a product’s price or the quantity demanded, if a business owner wants to increase her advertising expenses by $500 monthly, this would cause total costs to_____Blank and the break-even quantity to
Version 1
81
A) decrease; stay the same. B) increase; increase. C) decrease; increase. D) stay the same; increase. E) stay the same; decrease.
215) Companies are reluctant to lower their selling prices because this lowers the_____Blank and even more sharply increases the_____Blank. A) variable cost; profit B) contribution margin; break-even point C) revenue; fixed costs D) profit; fixed costs E) fixed cost; variable costs
216)
A primary reason for Washburn Guitars’ success is
A) underselling competitors by mass-producing fine-quality guitars. B) developing product lines at different price points for different market segments. C) offering significant price breaks to well-known performers in exchange for product endorsements. D) selling traditional American “rock ’n roll” guitars in global markets. E) setting up free music programs and donating low-price-point guitars to students in schools that have lost their music programs due to budget constraints.
217) Washburn Guitars markets its guitars to four distinct market segments. The firm’s one-ofkind custom instruments are targeted at
Version 1
82
A) first-time buyers. B) professional musicians. C) stars and collectors. D) large institutional buyers such as high school and collegiate band programs. E) intermediate-skill players who may become professional musicians.
218) Washburn Guitars markets its guitars to four distinct market segments. The firm’s batchcustom instruments are targeted at A) first-time buyers. B) professional musicians. C) celebrities. D) large institutional buyers such as band programs. E) intermediate-skill players who may become professional musicians.
219) Washburn Guitars markets its guitars to four distinct market segments. The firm’s mass customization instruments are targeted at A) first-time buyers. B) professional musicians. C) stars and famous musicians. D) large institutional buyers such as band programs. E) intermediate-skill players who may become professional musicians.
220) Washburn Guitars markets its guitars to four distinct market segments. The firm’s massproduced instruments are targeted at
Version 1
83
A) first-time buyers. B) professional musicians. C) stars and famous musicians. D) guitar collectors and music aficionados. E) intermediate-skill players who may become professional musicians.
221) The executive vice president of Washburn Guitars has set a sales target of 2,000 units for a new line of guitars. This type of objective is a_____Blank pricing objective. A) profit B) target return C) unit volume D) market share E) survival
222)
To reduce the price sensitivity for some of its products, Washburn Guitars A) uses multiple suppliers for its raw materials. B) offers three months of free music lessons with the purchase of each guitar. C) uses endorsements by internationally known musicians who play Washburn signature
guitars. D) offers a lifetime, unconditional warranty on all its instruments regardless of the price of its guitars. E) sponsors free music programs and special Washburn guitar camps for children.
Version 1
84
223) Washburn Guitars recently purchased Parker Guitar, another guitar manufacturer that designs products for professionals and collectors, and will combine the two production facilities into a new location. Washburn expects the acquisition to reduce its rent and tax expenses by 40 percent, and the new skilled employees will reduce the hours of work needed for each unit by 15 percent. This would cause the slope of the total cost curve to_____Blank and the break-even quantity to A) decrease; stay the same. B) decrease; increase. C) increase; increase. D) stay the same; increase. E) decrease; decrease.
224)
Explain the price equation in the context of a new car purchase.
225)
How do consumers use price in their assessments of value?
226)
What are the six major steps involved in setting prices?
Version 1
85
227) In the process of setting price, a marketer must first identify pricing objectives and constraints. Next, in Step 2, three specific estimates are necessary. What are they?
228) What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?
229) Step 1 of the price-setting process identifies pricing objectives and constraints. Describe the reasons these objectives may change and give examples of objectives a firm may set.
230)
Describe a profit objective used by many Japanese manufacturing firms.
231)
Describe the pricing constraints a firm is likely to face.
Version 1
86
232)
Describe the types of competitive markets and give an example of each one.
233)
List four key factors used to estimate demand.
234)
Factors other than price affect demand. What are they and how do they work?
235) What is the difference between a movement along a demand curve and a shift of a demand curve?
236)
Distinguish between elastic demand and inelastic demand.
Version 1
87
237)
What factors determine price elasticity of demand?
238)
What is the difference between fixed costs and variable costs?
239) Marketing managers often use break-even analysis to analyze the relationship between total revenue and total cost to determine profitability at various levels of output. What is the break-even formula? Use the formula to calculate how many radio-controlled drones a dealer must sell if her fixed costs are $100,000, unit variable costs are $150, and the selling price is $200.
Version 1
88
Answer Key Test name: Chap 13_16e_Kerin 1) E 2) C 3) C 4) A 5) D 6) C 7) B 8) E 9) A 10) D 11) C 12) D 13) A 14) C 15) E 16) A 17) B 18) E 19) B 20) C 21) D 22) D 23) E 24) B 25) A 26) C Version 1
89
27) B 28) A 29) E 30) C 31) C 32) A 33) B 34) D 35) A 36) B 37) A 38) D 39) E 40) C 41) D 42) B 43) E 44) B 45) A 46) A 47) B 48) D 49) E 50) A 51) B 52) A 53) D 54) C 55) A 56) B Version 1
90
57) C 58) D 59) C 60) B 61) E 62) C 63) E 64) A 65) D 66) A 67) C 68) E 69) C 70) B 71) A 72) D 73) C 74) A 75) B 76) C 77) D 78) A 79) C 80) B 81) D 82) E 83) B 84) D 85) D 86) E Version 1
91
87) A 88) C 89) A 90) B 91) D 92) E 93) C 94) B 95) D 96) E 97) E 98) B 99) D 100) B 101) A 102) B 103) A 104) D 105) A 106) B 107) C 108) D 109) E 110) C 111) C 112) B 113) C 114) D 115) B 116) E Version 1
92
117) D 118) A 119) B 120) C 121) E 122) D 123) B 124) A 125) C 126) A 127) A 128) C 129) C 130) D 131) A 132) A 133) E 134) C 135) B 136) B 137) C 138) E 139) A 140) D 141) B 142) A 143) B 144) A 145) A 146) E Version 1
93
147) A 148) A 149) B 150) E 151) C 152) A 153) C 154) A 155) B 156) A 157) B 158) C 159) D 160) A 161) E 162) C 163) E 164) A 165) B 166) E 167) A 168) E 169) B 170) E 171) C 172) A 173) B 174) D 175) C 176) B Version 1
94
177) E 178) A 179) B 180) A 181) C 182) C 183) C 184) C 185) A 186) C 187) A 188) D 189) D 190) C 191) E 192) C 193) C 194) D 195) D 196) C 197) B 198) E 199) E 200) B 201) C 202) E 203) C 204) A 205) C 206) D Version 1
95
207) E 208) C 209) D 210) B 211) B 212) E 213) C 214) B 215) B 216) B 217) C 218) B 219) E 220) A 221) C 222) C 223) E
Version 1
96
CHAPTER 14 1)
Amazon wanted lower retail prices for e-books to A) lower royalties to authors. B) eliminate distributors. C) raise prices overall for printed books. D) undermine its rival, Nook. E) build its e-book business.
2) To accommodate the changes in the book selling market, publishers changed their pricing approach so that A) rebates could be paid to the bookstores. B) readers would pay more so that distributors would continue to profit. C) distributors would no longer get a commission on every e-book sold. D) distributors would get a commission on every e-book sold. E) eventually e-books would be free to distribute.
3) With the introduction of e-books, distributors could still set their own retail prices, but with a restriction. Distributors could set prices below a publisher’s retail list price so long as they A) matched the commission received from a publisher. B) exceeded the commission received from a publisher. C) did not exceed the commission received from a publisher. D) did not increase prices to the readers. E) prevented discounts to competitors.
4) Which of these is the step in setting a final price for a product that occurs immediately after determining cost, volume, and profit relationships?
Version 1
1
A) set list or quoted price B) select an approximate price level C) scan competitors for prices of similar products or services D) estimate demand and revenue E) identify pricing objectives and constraints
5) The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Which of these is one of four common approaches to selecting an approximate price level? A) competition-oriented B) cause-oriented C) revenue-oriented D) stakeholder-oriented E) distribution-oriented
6) Figure 14-2 represents the four approaches to selecting an appropriate price level. Box A represents which approach?
Version 1
2
A) cost-oriented B) profit-oriented C) competition-oriented D) demand-oriented E) results-oriented
7) Figure 14-2 represents the four approaches to selecting an appropriate price level. Box B represents which approach?
A) cost-oriented B) profit-oriented C) competition-oriented D) demand-oriented E) results-oriented
Version 1
3
8) Figure 14-2 represents the four approaches to selecting an appropriate price level. Box C represents which approach?
A) cost-oriented B) profit-oriented C) competition-oriented D) demand-oriented E) results-oriented
9) Figure 14-2 represents the four approaches to selecting an appropriate price level. Box D represents which approach?
Version 1
4
A) cost-oriented B) profit-oriented C) competition-oriented D) demand-oriented E) results-oriented
10)
Which statement about the price-setting process is most accurate?
A) When selecting a strategy for setting an initial price, it doesn’t matter which one you use as long as you stick with it. B) Sometimes pricing strategies overlap, and a seasoned marketer will consider several strategies when choosing an approximate price level. C) Demand-oriented pricing approaches rely heavily on comparison with competitors’ prices. D) Skimming pricing is a competition-oriented pricing strategy. E) Penetration pricing is the best pricing strategy for companies trying to meet the goals of a profit-oriented pricing approach.
11) Demand-oriented approaches weigh factors that underlie expected_____Blank more heavily than such factors as cost, profit, and competition when selecting a price level. A) total revenue B) stakeholder concerns C) discounting practices D) product substitutes E) customer tastes
12) All of these are demand-oriented approaches to selecting an approximate price levelexcept which?
Version 1
5
A) penetration B) yield management C) customary D) bundle E) prestige
13)
Skimming pricing is considered to be a_____Blank approach to pricing. A) demand-oriented B) cost-oriented C) profit-oriented D) competition-oriented E) service-oriented
14) Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as A) a skimming strategy. B) a penetration strategy. C) a price-lining strategy. D) an experience-curve pricing strategy. E) a prestige pricing strategy.
15)
Skimming pricing refers to
Version 1
6
A) setting the lowest initial price possible when introducing a new or innovative product in order to “skim” sales from competitors. B) setting the highest initial price that customers who really desire the product are willing to pay. C) setting a low initial price on a new product to appeal immediately to the mass market. D) the practice of replacing promotional allowances with higher manufacturer list prices. E) setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.
16)
Skimming pricing is a strategy that introduces a new or innovative product by A) following a price elastic strategy. B) creating multiple price points. C) setting a high initial price. D) setting a low initial price. E) setting the price at the average of competitors’ prices.
17) There are several factors that predict when a skimming pricing policy is likely to be most effective, including situations in which A) consumers tend to be price-sensitive. B) lowering the price has only a minor effect on sales volume and unit cost. C) it will be easier to set measurable sales unit goals. D) a lower price will significantly reduce unit costs. E) consumers perceive your product to be similar to other products in the market.
18)
A skimming pricing policy is likely to be most effective when
Version 1
7
A) consumers tend to be price-sensitive. B) the company’s product is easily and quickly duplicated. C) a lower price will significantly lower fixed costs. D) consumers perceive this product to be similar to others on the market. E) the high initial price will not attract competitors.
19) A manufacturer of a portable digital HD camera is thinking of using a skimming pricing strategy for its new product. Which condition would argueagainst using a skimming pricing strategy for the camera? A) There will be a large potential market, even if the product is sold at a high price. B) Technological problems still exist for competitors; their products are not equivalent. C) Increasing the volume sold reduces production costs substantially. D) Consumers perceive a strong price-quality relationship for this product. E) Many consumers in the target market are innovators.
20) The latest in appliance technology allows your refrigerator to send messages to your smartphone and even photos of the interior to remind you of what you need to pick up at the store. Taking advantage of strong consumer demand for technology-enabled products, marketers set prices for these refrigerators at thousands above other models. These marketers are using a_____Blank pricing strategy. A) skimming B) penetration C) prestige D) price lining E) bundle
Version 1
8
21) The first Apple iPhone was introduced in 2007 at an initial price of $600. People waited in line overnight so they could be one of the first to own this unique smartphone. Which pricing strategy did Apple use to help recoup its costs for developing the smartphone? A) penetration pricing B) experience-curve pricing C) customary pricing D) skimming pricing E) target pricing
22)
Penetration pricing is considered to be a_____Blank approach to pricing. A) demand-oriented B) cost-oriented C) profit-oriented D) competition-oriented E) service-oriented
23)
Penetration pricing refers to A) charging different prices to different buyers for goods of like grade and quality. B) setting the highest initial price that customers really desiring the product are willing to
pay. C) setting a low initial price on a new product to appeal immediately to the mass market. D) setting a market price for a product or product class based on a subjective feel for the competitors’ prices or market price. E) setting prices a few dollars or cents under an even number.
24)
The pricing strategy that is almost the exact opposite of skimming pricing is
Version 1
9
A) target pricing. B) penetration pricing. C) price lining. D) odd-even pricing. E) prestige pricing.
25)
Penetration pricing is intended to appeal to which market? A) highly selective, quality-seeking consumers B) price-insensitive markets C) specialty product markets D) the same markets as those targeted with a skimming pricing strategy E) the mass market
26)
Penetration pricing A) is a profit-oriented approach to pricing. B) is a cost-oriented pricing method. C) often encourages competitors to enter a market. D) is more effective for a price-sensitive market segment. E) usually precedes a skimming pricing.
27) Several factors indicate that a penetration pricing policy would be effective when introducing a new product, including situations in which
Version 1
10
A) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost. B) the high initial price will not attract competitors. C) customers interpret the high price as signifying high quality. D) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable. E) many segments of the market are price-sensitive.
28)
A penetration pricing policy is most likely to be effective when which of these is true?
A) Lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost. B) The high initial price will not attract competitors. C) A low initial price discourages competitors from entering the market. D) Customers interpret the high price as signifying high quality. E) Enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable.
29) In some cases, penetration pricing may follow_____Blank pricing after price-insensitive customers have already purchased. A) experience-curve B) target ROI C) odd-even D) above-market E) skimming
30) In some cases, penetration pricing may follow skimming pricing. The skimming pricing would help_____Blank and the penetration pricing would help
Version 1
11
A) increase market share; attract price-insensitive customers. B) attract price-sensitive customers; increase market share. C) recoup initial research and development costs; increase market share. D) recoup initial research and development costs; improve firm reputation. E) increase market share; attract price-insensitive customers.
31) When Amazon introduced the latest Kindle Fire tablet at $49.99 and the average price of competitive models was $323, Amazon was using a_____Blank pricing strategy. A) skimming B) price lining C) BOGO D) penetration E) loss-leader
32) Wrigley introduced a new flavor of Orbit brand sugar-free chewing gum, mint mojito, and its introductory price was low so that it quickly created loyal customers for the flavor. Here, Wrigley used A) skimming pricing. B) price lining. C) odd-even pricing. D) penetration pricing. E) loss-leader pricing.
33) In response to Duracell’s introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery. But unlike Duracell, Energizer priced its batteries at a low initial price, believing that consumers were too price-sensitive to pay more in this category. In this case, Energizer used
Version 1
12
A) penetration pricing. B) prestige pricing. C) skimming pricing. D) price lining. E) cost-plus fixed-fee pricing.
34)
Prestige pricing is considered to be a_____Blank approach to pricing. A) demand-oriented B) cost-oriented C) profit-oriented D) competition-oriented E) service-oriented
35)
Prestige pricing refers to
A) charging different prices to different buyers for goods of like grade and quality. B) setting a low initial price on a new product to appeal immediately to the mass market odd-even pricing. C) setting a market price for a product or product class based on a subjective feel for the competitors’ price or market price. D) setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. E) setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.
36) Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as
Version 1
13
A) skimming pricing. B) status pricing. C) price lining. D) value pricing. E) prestige pricing.
37)
Figure 14-3 shows a demand curve depicting which pricing approach?
A) prestige pricing B) skimming pricing C) penetration pricing D) price lining E) reflexive pricing
Version 1
14
38)
The movement from point A to point B in Figure 14-3 shows
A) skimming demand. B) penetration demand. C) that buyers see the product as a bargain and buy more. D) that buyers become dubious about the quality and prestige and buy less. E) a downturn in the economy.
Version 1
15
39)
The movement from point B to point C in Figure 14-3 shows
A) skimming demand. B) penetration demand. C) that buyers see the product as a bargain and buy more. D) that buyers become dubious about the quality and prestige and buy less. E) a downturn in the economy.
40) You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989. Since Bosch uses its pricing strategy to project a high-quality product image, it is most likely using_____Blank pricing. A) bundle B) standard markup C) prestige D) penetration E) cost plus fixed-fee
Version 1
16
41) A Patek Philippe Sky Moon Tourbillon men’s wristwatch is among the most expensive in the world, costing more than $1.5 million. This is an example of a_____Blank strategy. A) penetration pricing B) target pricing C) bundle-pricing D) loss-leader pricing E) prestige pricing
42) When the Swiss watchmaker TAG Heuer quadruped the average price of its watches, its sales volume jumped sevenfold. The likely cause of this volume increase is that A) the watch market is highly conservative. B) economies of scale in production would be substantial. C) retailers are not willing to carry new brands of watches in this category. D) once the initial price is set, it is nearly impossible to lower the price without alienating early buyers. E) the watch category frequently uses prestige pricing, wherein lower prices may result in lower sales.
43)
Price lining is considered to be a_____Blank approach to pricing. A) cost-oriented B) demand-oriented C) profit-oriented D) competition-oriented E) service-oriented
44) Setting the price of a line of products at a number of different specific price points is referred to as
Version 1
17
A) odd-even pricing. B) bundle pricing. C) cost-plus pricing. D) price lining. E) prestige pricing.
45)
Price lining refers to
A) charging different prices to different buyers for goods of like grade and quality. B) setting a low initial price on a new product to appeal immediately to the mass market. C) setting a market price for a product or product class based on a subjective feel for the competitors’ price or market price as the benchmark. D) setting prices a few dollars or cents under an even number. E) setting the price of a line of products at a number of different specific pricing points.
46)
When using a price lining strategy, a marketer will
A) set the price of a line of products at a number of different specific pricing points. B) set the price slightly higher than necessary to protect against losses resulting from adverse environmental forces. C) adjust the price of a product so it is “in line” with the price of its largest competitor. D) set a low initial price on a new product to appeal immediately to the mass market. E) set a market price for a product or product class based on a subjective feel for the competitors’ price or market price as the benchmark.
47) If demand for a class of products is elastic at a number of price points but is inelastic between these price points, which pricing approach should be chosen?
Version 1
18
A) product-line pricing B) skimming pricing C) penetration pricing D) price lining E) odd-even pricing
48)
Which statement regarding price lining is most accurate? A) In order for price lining to be effective, there should be at least five specified price
points. B) Price lining assumes that demand is inelastic at each price point but elastic between price points. C) Price lining assumes that demand is elastic at each price point but inelastic between price points. D) Price lining is the preferred pricing strategy for governmental contracts. E) Price lining is the same as above-, at-, or below-market pricing.
Version 1
19
49)
Figure 14-4 illustrates which type of pricing approach?
A) skimming B) penetration C) cost-plus D) price lining E) prestige
50) A retailer purchased a gross (144) of silk shells, each costing exactly $17. Although the only difference between the shells was color, when they were put on the floor, the primary colors were marked $25, the pastel colors were marked $28, and the black-and-white shells were marked $30. These prices were set most likely because
Version 1
20
A) retailers using a price lining strategy will occasionally mark up items based on color, style, and expected consumer demand. B) fewer people buy black-and-white shells, so the retailer has to charge a higher price to break even. C) the retailer is using prestige pricing; black-and-white shells are more elegant. D) the primary colors were priced using a penetration strategy, the pastels were priced using a skimming strategy, and the black-and-white shells were priced using prestige pricing. E) the retailer is essentially using above-, at-, and below-market pricing for the three groupings.
51)
Odd-even pricing is considered to be a_____Blank approach to pricing. A) cost-oriented B) profit-oriented C) demand-oriented D) competition-oriented E) service-oriented
52)
Odd-even pricing refers to
A) setting prices one way for product lines and another way for individual brands. B) setting prices of luxury items at even price points and setting the price of necessities at odd price points. C) setting prices a few dollars or cents under an odd number. D) adding a fixed percentage to the cost of all items in a specific product class. E) setting prices a few dollars or cents under an even number.
53)
Setting prices a few dollars or cents under an even number is referred to as
Version 1
21
A) odd-even pricing. B) prestige pricing. C) price lining. D) above-, at-, or below-market pricing. E) every day fair pricing.
54)
Which statement regarding odd-even pricing is most accurate?
A) Odd-even pricing is designed to give the consumer a better set of pricing alternatives. B) Odd-even pricing can be used in conjunction with a skimming pricing strategy, but should not be used with a penetration pricing strategy. C) Odd-even pricing does not work if the product is considered essential to health and wellness. D) Overuse of odd-ending prices tends to mute its effect on demand. E) Odd-ending prices are best used with large ticket items; it loses its effectiveness with moderate- to low-ticket items.
55) The prices for all furniture sold at American Furniture Warehouse end in $9.99, such as $599.99, $899.99, etc. American Furniture Warehouse uses A) odd-even pricing. B) dynamic pricing. C) price lining. D) bundle pricing. E) product-line pricing.
56)
Target pricing is considered to be a_____Blank approach to pricing.
Version 1
22
A) cost-oriented B) profit-oriented C) demand-oriented D) competition-oriented E) service-oriented
57)
Target pricing refers to
A) a method of selecting specific prices wholesalers and retailers are willing to pay based upon the elasticity of each given item. B) a method of charging different prices to maximize revenue for a set amount of capacity at any given time. C) the practice of simultaneously increasing product and service benefits while maintaining or decreasing price. D) a method of estimating the price that ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers. E) a method of estimating the price that ultimate consumers would be willing to pay for a product, then determining how much wholesalers wish to charge its customers, deliberately adjusting the composition and features of the product to achieve the price to consumers.
58) The pricing approach that results in the manufacturer deliberately adjusting the composition and features of the product to achieve the desired price for consumers is referred to as A) cost-benefit pricing. B) cost-plus percentage-of-cost pricing. C) target pricing. D) cost-plus fixed-fee pricing. E) product feature pricing.
Version 1
23
59) The pricing approach that estimates the price that ultimate consumers would be willing to pay for a product; works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers is referred to as A) cost-benefit pricing. B) cost-plus percentage-of-cost pricing. C) target pricing. D) cost-plus fixed-fee pricing. E) product feature pricing.
60)
Which pricing techniques is most sensitive to customers’ responses to price? A) cost-plus percentage-of-cost pricing B) target pricing C) experience-curve pricing D) cost-plus fixed-fee pricing E) standard markup pricing
61) The Swedish manufacturer of Asko dishwashers concluded that consumers would be willing to pay approximately $989 for a dishwasher that was quieter than any other dishwasher on the market. Based on this price, Asko determined the margins that would have to be given to wholesalers and retailers to arrive at the $989 retail price. Asko used A) prestige pricing. B) price lining. C) cost-plus pricing. D) target pricing. E) customary pricing.
Version 1
24
62)
Bundle pricing is considered to be a_____Blank pricing practice. A) demand-oriented B) cost-oriented C) profit-oriented D) competition-oriented E) product line-oriented
63)
Which of these is a demand-oriented approach to pricing? A) customary pricing B) target profit pricing C) standard markup pricing D) bundle pricing E) service-oriented pricing
64)
Marketing two or more products in a single package price is referred to as A) package pricing. B) loss-leader pricing. C) bundle pricing. D) tie-in pricing. E) multi-product pricing.
65)
Bundle pricing refers to
Version 1
25
A) an extra amount of “free goods” awarded sellers in the channel of distribution for promoting a product. B) marketing two or more products in a single package price. C) using BOGOs—requiring customers to “buy one to get one free” as a strategy to increase sales and profits. D) setting the price of a line of products at two specific pricing points. E) the practice of charging two or more prices depending upon the outlet carrying the product.
66)
Bundle pricing
A) is intended to benefit the consumer, not the seller. B) is really “bundle packaging” since the price charged is for two or more of the same products that are shrink-wrapped together. C) is often associated with a skimming strategy. D) often provides a lower total cost to buyers and lower marketing costs to sellers. E) is based on the idea that consumers value the individual items more than they value the group contained in the package.
67) If you were to buy one peach tree and one apple tree from the Stark Bros. fruit trees and landscaping catalog in two separate orders, you would pay a total of $109.99. However, if you order the peach and apple tree together in the same order, you pay only $89.99 each. When purchasing the two trees together, what pricing strategy does Stark Bros. employ? A) product-line pricing B) prestige pricing C) price lining D) discount pricing E) bundle pricing
Version 1
26
68) When Dell sells various laptops, it also pre-installs Microsoft Office and other software that customers order at a discount before a laptop is shipped. This is an example of A) price lining. B) product-line pricing. C) bundle pricing. D) customary pricing. E) prestige pricing.
69) A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry is sold for $1.50 less than the regular price of the products sold separately. This is an example of_____Blank pricing. A) penetration B) prestige C) bundle D) odd-even E) standard markup
70) Delta Air Lines offers vacation packages that include airfare, car rental, and lodging. Delta Air is using a(n)_____Blank pricing strategy. A) penetration B) prestige C) bundle D) odd-even E) standard markup
71)
Yield management is considered to be a_____Blank approach to pricing.
Version 1
27
A) demand-oriented B) cost-oriented C) profit-oriented D) competition-oriented E) service-oriented
72)
Yield management pricing refers to
A) controlling the production of products based upon seasonal demand. B) deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention in hopes that they will buy other products as well. C) charging the same prices during different times of the day or days of the week to reflect variations in supply for the service. D) offering significant price discounts to wholesalers that agree to purchase products in advance for a period of a year or more at a time. E) charging different prices to maximize revenue for a set amount of capacity at any given time.
73) Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as A) demand-backward pricing. B) target pricing. C) skimming pricing. D) yield management pricing. E) penetration pricing.
74) A_____Blank approach often results in changing prices based on time, day, week, or season.
Version 1
28
A) skimming pricing B) bundle pricing C) yield management pricing D) target return-on-investment pricing E) standard markup pricing
75)
Yield management pricing is a typical tactic for services trying to manage A) perceived risk. B) capacity. C) cognitive dissonance. D) inelasticity of demand. E) new product strategy development.
76) While_____Blank often changes price based upon color or style,_____Blank often changes prices based on time, day, week, or season. A) prestige pricing; skimming pricing B) yield management pricing; bundle pricing C) price lining; yield management pricing D) target pricing; target return-on-investment pricing E) bundle pricing; standard markup pricing
77) Airlines, hotels, and car rental firms all engage in_____Blank by varying prices based on time, day, week, or season to match supply and demand.
Version 1
29
A) skimming pricing B) yield management pricing C) bundle pricing D) target pricing E) prestige pricing
78) One problem in the interstate trucking industry is the number of trucks that return empty after making a delivery. There is a website where independent interstate truckers can look for loads to carry on their return trips, known as backhauls. Because the trucks would normally return empty, truckers who use this website to generate business they would not have had otherwise receive a reduced shipping rate. This reduced rate for a backhaul is an example of A) penetration pricing. B) target pricing. C) cost-plus pricing. D) odd-even pricing. E) yield management pricing.
79)
Which of these is a cost-oriented pricing method? A) loss-leader pricing B) standard markup pricing C) at-, above-, or below-market pricing D) price lining E) penetration pricing
80) With a cost-oriented pricing strategy, a price setter stresses the_____Blank side of the pricing problem, and the price is set by looking at
Version 1
30
A) demand; revenue. B) production and marketing; profit. C) demand; target sales. D) cost; production and marketing expenses. E) cost; consumer tastes.
81)
Which statement regarding cost-oriented approaches is most accurate?
A) These methods focus on the demand side of the pricing problem. B) These methods account for production, marketing, and overhead expenses. C) Skimming is an example of a cost-oriented method. D) These methods are difficult to use because costs are not predictably related to rates of production. E) Cost-oriented approaches are a subcategory of competition-oriented methods.
82)
Standard markup pricing is considered to be a_____Blank approach to pricing. A) demand-oriented B) profit-oriented C) cost-oriented D) competition-oriented E) service-oriented
83)
Standard markup pricing refers to
Version 1
31
A) adjusting the price of a product so it is comparable with that of its largest competitor. B) setting the price of a line of products at a number of different price points. C) setting prices to achieve a profit that is a specified percentage of the sales volume. D) increasing the price slightly to protect against undue profit losses from unforeseen environmental forces. E) adding a fixed percentage to the cost of all items in a specific product class.
84) as
Adding a fixed percentage to the cost of all items in a specific product class is referred to
A) target profit pricing. B) standard markup pricing. C) target return-on-investment pricing. D) customary pricing. E) everyday low pricing.
85)
All of these statements about standard markup pricing are trueexcept which?
A) High-volume products usually have smaller markups than do low-volume products. B) The percentage markup depends on the type of retail store and the product involved. C) Markups must cover all expenses of the store, pay for overhead costs, and contribute something to profits. D) A price is achieved by summing the total unit cost of providing a product or service and adding a specific amount to the cost. E) Supermarket managers have such a large number of products that estimating the demand for each product as a means of setting price is impossible.
86) Creative Quilts Studio sells hundreds of colors and types of fabric and thread. To price its inventory, the owners add 50 percent to the cost of each bolt of fabric and every spool of thread. What is this pricing approach called?
Version 1
32
A) target return-on-sales pricing B) flexible pricing C) cost-plus pricing D) standard markup pricing E) customary pricing
87) It costs Lady Marion Seafood, Inc., $30 to catch, process, freeze, package, and ship fivepound packages of Alaskan salmon. The firm adds 60 percent to the cost of its salmon products and charges customers a total of $48 for a postage-paid vacuum-sealed package. What type of pricing does Lady Marion Seafood use? A) target return-on-sales pricing B) bundle pricing C) standard markup pricing D) target profit pricing E) customary pricing
88) Supermarket managers use standard markup pricing because it is particularly suited to situations when A) there is a large number of products and estimating the demand for each would be difficult and time consuming. B) there is a large number of product lines, all with basically the same product attributes. C) there is a specific profit goal that needs to be achieved. D) there is a policy of selling every item in a product line at the same price regardless of the product class. E) the products are perishable or seasonal.
89)
Which of these is a cost-oriented approach to pricing?
Version 1
33
A) cost-plus pricing B) skimming pricing C) prestige pricing D) loss-leader pricing E) bundle pricing
90) Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as A) standard markup pricing. B) experience-curve pricing. C) cost-plus pricing. D) product-line pricing. E) target return-on-investment pricing.
91)
Cost-plus pricing refers to
A) summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price. B) setting the price of a line of products at a number of different price points. C) adding a fixed percentage to the cost of all items in a specific product class. D) setting prices to achieve a profit that is a specified percentage of the sales volume. E) increasing the price slightly to protect against undue profit losses from unforeseen environmental forces.
92)
The two forms of cost-plus pricing are
Version 1
34
A) cost-plus-fixed-fee pricing and cost-plus-variable-fee pricing. B) cost-plus-ROI pricing and cost-percentage-ROI pricing. C) target return-on-sales pricing and target return-on-investment pricing. D) cost-plus-percentage-of-cost pricing and cost-plus-fixed-fee pricing. E) dynamic pricing and flexible pricing.
93) Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as A) cost-plus-fixed-percentage fee pricing. B) target pricing. C) cost-plus-percentage-of-cost pricing. D) experience-curve percentage pricing. E) target return-on-investment pricing.
94)
Cost-plus-percentage-of-cost pricing refers to
A) summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price. B) adding a fixed percentage to the cost of all items in a specific product class. C) setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors. D) setting the price of a product or service by adding a fixed percentage to the total unit cost. E) charging different prices to different buyers for goods of like grade and quality.
95)
Which type of business is most likely to use cost-plus-percentage-of-cost pricing?
Version 1
35
A) real estate agency B) insurance company C) power company D) space shuttle contractor E) architect
96) A pricing method where a supplier is reimbursed for all costs, regardless of what they may be, and also receives an agreed-on dollar amount of profit that is independent of the final cost of the project, is referred to as A) target return-on-investment pricing. B) cost-plus-percentage-of-cost pricing. C) target return-on-sales pricing. D) experience-curve pricing. E) cost-plus-fixed-fee pricing.
97) When buying highly technical, few-of-a-kind products such as hydroelectric power plants, governments have found that general contractors are reluctant to specify a formal, fixed price for the procurement. Therefore, these contractors use_____Blank to compensate them for any cost overruns. A) at-market pricing B) experience-curve pricing C) cost-plus-fixed-fee pricing D) standard markup pricing E) yield management pricing
98) What pricing strategy did the National Aeronautics and Space Administration (NASA) use to pay Lockheed Martin for the Orion lunar spacecraft?
Version 1
36
A) cost-plus-percentage-of-cost pricing B) experience-curve pricing C) standard markup pricing D) yield management pricing E) cost-plus-fixed-fee pricing
99) The Brazilian government wants to build a global positioning satellite (GPS) system. The satellite manufacturer will receive a mutually agreed-on profit over and above all costs associated with the project. The pricing approach the satellite manufacturer uses is called A) standard markup pricing. B) experience-curve pricing. C) cost-plus-percentage-of-cost pricing. D) cost-plus-fixed-fee pricing. E) bundle pricing.
100)
The most commonly used pricing method for business products is A) target return-on-investment. B) customary. C) standard markup. D) target profit. E) cost-plus pricing.
101) Architectural firms that specialize in designing and constructing one-of-a-kind custom buildings such as the Rock and Roll Hall of Fame often use which pricing strategy?
Version 1
37
A) cost-plus pricing B) experience-curve pricing C) standard markup pricing D) yield management pricing E) price lining
102) Rather than billing clients by the hour, some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed-on level of profit for the law firm. Which pricing approach are they using? A) target pricing B) cost-plus pricing C) customary pricing D) experience-curve pricing E) bundle pricing
103)
Which of these is a cost-oriented approach to pricing? A) skimming pricing B) prestige pricing C) loss-leader pricing D) experience-curve pricing E) bundle pricing
104)
Experience-curve pricing is considered to be a_____Blank approach to pricing.
Version 1
38
A) demand-oriented B) cost-oriented C) profit-oriented D) competition-oriented E) service-oriented
105)
Experience-curve pricing refers to
A) the method of pricing where the price of a product often rises following the expansion of costs associated with the firm’s producing and selling an increased volume of the product. B) the point at which profits double, then double again, as more consumers buy the product. C) a predictive pricing plan based upon the knowledge that the prices will fluctuate in a predictable pattern within a given industry based on the diffusion of innovation. D) a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 to 30 percent each time a firm’s experience at producing and selling them doubles. E) a pricing strategy that uses price estimates based upon the consensus of the salesforce and the firm’s top management team.
106) Which cost-oriented pricing method is based on the recognition that a product’s unit costs predictably decline by 10 to 30 percent each time its production volume doubles? A) experience-curve pricing B) cost-plus-percentage-of-cost pricing C) capacity management pricing D) standard markup pricing E) derived demand pricing
Version 1
39
107) Japanese, Korean, and U.S. firms in the electronics industry often adopt which costoriented pricing approach, one that complements the demand-oriented pricing strategy of skimming followed by penetration pricing? A) cost-plus-percentage-of-cost pricing B) cost-plus-fixed-fee pricing C) standard markup pricing D) derived demand pricing E) experience-curve pricing
108)
Which industry is most likely to adopt an experience-curve pricing approach? A) advertising B) space exploration C) ready-to-eat cereal D) electronics E) mining
109) If a firm estimates that its costs will fall by 10 percent each time volume doubles for its product, then the cost of the l,000th unit produced and sold will be about 90 percent of the cost of the 500th unit, and the 2,000th unit will be 90 percent of the l,000th unit. Therefore, if the cost of the 500th unit is $100, the cost of the 4,000th unit would be A) $0. B) $72.90. C) $81.00. D) $90.00. E) $100.00.
Version 1
40
110) The retail price of mobile phones (unsubsidized) has decreased from $4,000 in 1983 when Motorola commercialized the device, to less than $99 today as the volume increased from zero to millions of units sold. This is due in large part to which type of pricing approach? A) skimming pricing B) prestige pricing C) experience-curve pricing D) odd-even pricing E) customary pricing
111) The retail price of fax machines has decreased from over $10,000 in the early 1970s to less than $100 today. This is due in large part to A) skimming pricing. B) prestige pricing. C) odd-even pricing. D) experience-curve pricing. E) customary pricing.
112) The retail price of DVD players has decreased from $900 in the mid-1990s to about $50 today. This is due in large part to A) skimming pricing. B) prestige pricing. C) odd-even pricing. D) customary pricing. E) experience-curve pricing.
113)
Which of these is a profit-oriented approach to pricing?
Version 1
41
A) skimming pricing B) target pricing C) loss-leader pricing D) target return-on-investment pricing E) standard markup pricing
114) All of these are profit-oriented approaches to select an approximate price level except which? A) target ROI pricing B) target profit pricing C) target return-on-sales pricing D) target return-on-investment pricing E) cost-plus-percentage-of-cost pricing
115) With profit-oriented approaches to pricing, a price setter chooses to balance both_____Blank and_____Blank to set price. A) revenue; profit B) tangible goods; services C) costs; revenue D) demand; supply E) costs; demand
116)
Target profit pricing refers to
Version 1
42
A) adjusting the price of a product so it is “in line” with that of its largest competitor. B) setting an annual target of a specific dollar volume of profit. C) setting the price of a line of products at a number of different price points. D) adding a fixed percentage to the cost of all items in a specific product class. E) setting prices to achieve a profit that is a specified percentage of production costs.
117)
Setting an annual target of a specific dollar volume of profit is referred to as A) target profit pricing. B) target return-on-investment pricing. C) loss-leader pricing. D) at-, above-, or below-market pricing. E) yield management pricing.
118)
A critical assumption when using target profit pricing is that
A) a higher average price will not cause the demand for a product to fall. B) a higher average price will cause new competitors to join the industry. C) a higher average price will be offset by reductions in manufacturing costs. D) profit is tied to the current value of the dollar in relation to foreign currencies. E) any price increase will be followed quickly by similar moves from all of your competitors.
119)
What is critical when using target profit pricing?
Version 1
43
A) demand that is insensitive to price over the range being considered B) a higher-than-average price compared to competitors C) a low potential for currency exchange rates to change D) a lower-than-average price compared to competitors E) a new or innovative product
120) A custom tailor wishes to use target profit pricing to establish a price for a customdesigned business suit. Assume variable cost is $200 per suit, fixed cost is $44,000, and the target profit is $50,000 based on a volume of 50 suits. What price should be charged for a typical custom suit? A) $520 B) $1,040 C) $1,880 D) $2,080 E) $10,000
121) Lady Marion Seafood, Inc., sells five-pound packages of Alaskan salmon. Assume that its unit variable cost per package is $30 and its fixed cost is $250,000. It wants a target profit of $38,000 based on a volume of 16,000 packages. What should the firm charge for a five-pound package of salmon? A) $25.00 B) $33.94 C) $40.00 D) $48.00 E) $61.25
122)
Target return-on-sales pricing refers to
Version 1
44
A) adjusting the price of a product so it is “in line” with that of its largest competitor. B) setting the price of a line of products at a number of different price points. C) adding a fixed percentage to the cost of all items in a specific product class. D) setting prices to achieve a profit that is a specified percentage of the sales volume. E) setting a price based on a specific annual dollar target profit volume.
123) Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as A) target return-on-investment pricing. B) target return-on-sales pricing. C) loss-leader pricing. D) target pricing. E) standard markup pricing.
124) Which profit-oriented pricing method is used because it establishes a benchmark to show how much of a firm’s effort is needed to achieve a certain profit? A) experience-curve pricing B) target return-on-sales pricing C) standard markup pricing D) target profit pricing E) loss-leader pricing
125) The owner of a store that sells custom kitchen cabinets wishes to use a target return-onsales pricing approach to establish a price for a typical section of cabinets. Assume that variable costs total $200 per unit, fixed cost is $44,000, and the storeowner desires a target profit of 20 percent return on sales at an annual volume of 400 cabinets. What price should be charged for a typical cabinet section?
Version 1
45
A) $263.50 B) $311.00 C) $387.50 D) $445.50 E) $775.00
126)
Target return-on-investment pricing refers to A) setting a price to achieve an annual target ROA. B) adding a fixed percentage to the cost of all items in a specific product class. C) setting prices to achieve a profit that is a specified percentage of the sales volume. D) setting a price to achieve an annual target ROI. E) setting a price based on an annual specific dollar target volume of profit.
127)
Setting a price to achieve an annual return-on-investment (ROI) goal is referred to as A) target return-on-investment pricing. B) target return-on-profit pricing. C) target return-on-sales pricing. D) target profit pricing. E) customary pricing.
128)
Which business would be most likely to use target return-on-investment pricing? A) a farmer B) a local restaurant chain C) a book publisher D) a veterinarian E) an automobile manufacturer
Version 1
46
129)
Target return-on-investment (ROI) is frequently used by A) contractors. B) public utilities. C) business-to-business markets. D) supermarkets. E) small privately owned firms.
130) Figure 14-5 shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI). What is the ROI for Scenario A?
A) 2% B) 5% C) 10% D) 14% E) 17%
Version 1
47
131) Figure 14-5 shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI). What is the ROI for Scenario B?
A) 2% B) 5% C) 10% D) 14% E) 17%
132) Figure 14-5 shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI). What is the ROI for Scenario C?
Version 1
48
A) 2% B) 5% C) 10% D) 14% E) 17%
133)
Which of these is a competition-oriented approach to pricing? A) skimming pricing B) target pricing C) customary pricing D) target return-on-sales pricing E) standard markup pricing
134) All of these are competition-oriented approaches to selecting an approximate price levelexcept which? A) loss-leader pricing B) customary pricing C) above-market pricing D) penetration pricing E) at-market pricing
135) Rather than emphasize demand, cost, or profit factors, a price setter can stress what_____Blank doing.
Version 1
49
A) the service sector is B) the market or competitors C) the global economy is D) suppliers are E) the financial markets are
136)
Customary pricing refers to
A) a pricing method where the price the seller quotes includes all transportation costs. B) setting the same price for similar customers who buy the same product and quantities under the same conditions. C) deliberately selling a product below its list price to attract attention to it. D) setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors. E) pricing based on what the market will bear.
137) Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors is referred to as A) cost-plus pricing. B) customary pricing. C) standard markup pricing. D) loss-leader pricing. E) target profit pricing.
Version 1
50
138) Southern gardeners normally pay $5 for a two-cubic-foot bag of pine bark mulch that they buy at their local gardening-supply and home-improvement stores to keep the weeds down in their gardens. If the price being charged by a retailer is not within a narrow range that gardeners feel is appropriate, they will use substitutions—newspaper, grass clippings, or some other kind of covering. When pricing pine bark mulch, a garden-supply or home-improvement retailer should use A) customary pricing. B) at-market pricing. C) loss-leader pricing. D) penetration pricing. E) bundle pricing.
139) Consumers buy water and soda from vending machines. Usually the price of each of these products is about $1.50. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.50 per item, sales are likely to decline. Thus, marketers tend to be very consistent in the prices they charge for vending machine products. This is an example of marketers employing a_____Blank strategy. A) below-market pricing B) skimming pricing C) penetration pricing D) loss-leader pricing E) customary pricing
140) Setting a market price for a product or product class based on a subjective feel for the competitors’ price or market price as the benchmark is referred to as
Version 1
51
A) customary pricing. B) above-, at-, or below-market pricing. C) standard markup pricing. D) competitive margin pricing. E) experience-curve pricing.
141) According to the text, clothing manufacturer Christian Dior and retailer Neiman Marcus use_____Blank pricing. A) above-market B) at-market C) below-market D) cost-plus E) everyday low
142) Swedish company Asko, which prides itself on manufacturing and marketing some of the best-built and most prestigious appliances in the world, would most likely use which competition-oriented pricing approach? A) customary pricing B) above-market pricing C) loss-leader pricing D) target profit pricing E) penetration pricing
143)
According to the text, Revlon cosmetics uses_____Blank pricing.
Version 1
52
A) above-market B) at-market C) below-market D) prestige E) everyday low
144)
Manufacturers of private brands use which method of competition-oriented pricing? A) penetration pricing B) below-market pricing C) loss-leader pricing D) prestige pricing E) skimming pricing
145) An ad campaign by Suave shampoo asked television viewers to identify women who used Suave shampoo and conditioner and those that used the much more expensive salon haircare products, when such distinction was not really possible. By making price its selling point, Suave is most likely using A) customary pricing. B) loss-leader pricing. C) prestige pricing. D) skimming pricing. E) below-market pricing.
146) Companies use a_____Blank to assess whether its products and brands are above, at, or below the market.
Version 1
53
A) customary price B) prestige price C) price premium D) price lining E) benchmark
147) Companies use a price premium to assess whether their products and brands are priced above, at, or below the market. This price premium equals A) unit volume market share for a brand divided by dollar sales market share for a brand, minus one. B) dollar sales market share for a brand divided by unit volume market share for a brand, plus one. C) dollar sales market share for a brand divided by unit volume market share for a brand, minus one. D) unit volume market share for a brand, divided by dollar sales market share for a brand, plus one. E) dollar sales market share for a brand, divided by unit volume market share for a brand, minus the number of competitors against which a brand is being measured.
148) In 2021, Red Bull had a 31% dollar sales market share and a 26% unit volume market share. Its price premium for that year equaled A) −16.1%. B) −7.5%. C) −5.0%. D) 5.0%. E) 19.2%.
149)
Loss-leader pricing refers to
Version 1
54
A) a pricing method where the price the seller charges is below the actual cost to make the product. B) setting a low initial price and gradually but consistently increasing that price so as not to antagonize the consumer. C) deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention in hopes that they will buy other products as well. D) a method of pricing based on a product’s tradition, standardized channel of distribution, or other competitive factors. E) pricing a product between 8 and 10% lower than nationally branded competitive products.
150) Deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention in hopes that they will buy other products as well, is referred to as A) loss-leader pricing. B) bundle pricing. C) magnet pricing. D) predatory pricing. E) below-market pricing.
151) When Kroger, a national supermarket chain, uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level of $4.29), it is attempting to A) drive its competition out of business. B) attract customers in hopes they will buy other products as well. C) fill its parking lot so its store will look successful. D) work with the local bottler to move products that are close to their expiration dates. E) help stimulate the local economy and generate good will with its customers.
152)
Setting one price for all buyers of a product or service is referred to as
Version 1
55
A) customary pricing. B) a fixed-price policy. C) a dynamic pricing policy. D) standard markup pricing. E) uniform pricing.
153)
A fixed-price policy refers to
A) setting different prices for products and services in real time in response to supply and demand conditions. B) setting the price of an entire line of products at a single specific pricing point. C) simultaneously setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. D) adding a fixed percentage to the cost of all items in a specific product class. E) setting one price for all buyers of a product or service.
154)
Another name for a fixed-price policy is A) customary pricing. B) a one-price policy. C) dynamic pricing. D) standard markup pricing. E) uniform pricing.
155) When you buy a used car from a CarMax dealership, you are offered the car at a “no haggle” price. You can buy it or not, but there is no negotiating the published price because of the seller’s
Version 1
56
A) customary pricing strategy. B) fixed-price policy. C) uniform pricing policy. D) dynamic pricing policy. E) dynamic pricing strategy.
156) Family Dollar Stores, like Dollar Value Stores and 99¢ Only Stores, use what type of pricing policy? A) dynamic pricing B) customary pricing C) flexible pricing D) fixed-price E) at-market pricing
157)
Tendollars.com offers thousands of gifts, all priced at $10. This is an example of a(n) A) skimming pricing approach. B) loss-leader pricing approach. C) fixed-price policy. D) penetration pricing approach. E) everyday low pricing approach.
158) Setting different prices for products and services in real time in response to supply and demand conditions is referred to as
Version 1
57
A) price lining. B) a dynamic pricing policy. C) customary pricing. D) price fixing. E) discretionary pricing.
159)
A dynamic pricing policy refers to
A) setting the price of a line of products at a number of different specific pricing points. B) setting the prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. C) deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention in hopes that they will buy other products as well. D) setting different prices for products and services in real time in response to supply and demand conditions. E) adding a fixed percentage to the cost of all items in a specific product class.
160)
Another name for a dynamic pricing policy is A) target pricing. B) fluid pricing. C) price lining. D) market-based pricing. E) a flexible-price policy.
161)
A dynamic pricing policy allows marketers to respond to
Version 1
58
A) requests for allowances. B) threats of discrimination. C) success measures for the firm’s previous promotions. D) changes in demand, cost, and competitive factors. E) inquiries by government agencies.
162)
Marketers using a dynamic pricing policy should take care to avoid A) requests for allowances. B) price gouging. C) contradictory promotions. D) changes in market segmentation. E) reliance on government agencies.
163)
Which of these is a form of dynamic pricing? A) odd-even pricing B) yield management pricing C) above-, at-, and below-market pricing D) target pricing E) cost-plus pricing
164)
Yield management pricing is a form of A) target pricing. B) loss-leader pricing. C) dynamic pricing. D) customary pricing. E) price lining.
Version 1
59
165)
The way that a person navigates through an online marketer’s website is called A) surf-shopping behavior. B) cross-channel shopping. C) the clickstream. D) one-click shopping. E) the shopper pathway.
166) The setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item, is referred to as A) line item pricing. B) product-line pricing. C) price lining. D) customary pricing. E) discretionary pricing.
167)
Product-line pricing refers to
A) setting the price of a line of products at a number of different specific pricing points. B) deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention in hopes that they will buy other products as well. C) adding a fixed percentage to the cost of all items in a specific product class. D) setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. E) the marketing of two or more products in a single package.
168) Product-line pricing involves determining the lowest-priced product and price, the highest-priced product and price, and Version 1
60
A) the single most popular item in the line. B) the least vulnerable product in the line. C) the most frequently sold product in the line. D) the most price-insensitive product in the line. E) the price differentials for all other products in the line.
169)
When establishing product-line pricing, the highest-priced item is typically positioned as A) the oldest product item in the line. B) the premium item in the line in terms of quality and features. C) the largest selling product item in the line. D) the loss-leader item for the rest of the product line. E) the most price-insensitive product item in the line.
170)
When establishing product-line pricing, the lowest-priced item is typically positioned as A) the youngest product item in the line. B) the smallest selling product item in the line. C) the lost-cost item in the line in terms of quality and features. D) the profit leader for the rest of the product line. E) the traffic builder designed to capture the attention of first-time buyers.
171) When establishing product-line pricing, the price differentials between items in the line should make sense to customers and reflect differences in terms of the
Version 1
61
A) perceived value of the products offered. B) actual costs of the features offered. C) perceived risk. D) quantity discounts and price allowances offered. E) market segments targeted.
172) Assume that Nike Variety tennis shoes have variable costs of $6 and sell for $24. Also assume that Nike Wimbledon tennis shoes have variable costs of $38 and sell for $48, but when fixed overhead is added, the shoe is unprofitable by $2 per pair. Which statement is most accurate regarding Nike’s pricing approach with these two products? A) Demand for each shoe is unrelated to price. B) Nike is using a cost-plus-percentage-of-cost pricing strategy. C) Nike is using a product-line pricing strategy. D) Demand for each shoe is unrelated to product quality. E) Consumers do not use price as an indication of quality.
173) The price for an HP laser printer was likely insufficient to cover its fixed and variable costs. However, the price of its printer cartridges was set high enough to cover its printer’s loss and deliver a handsome profit for all the related products as a whole. This example illustrates HP’s use of A) bundle pricing. B) product-line pricing. C) price lining. D) customary pricing. E) loss-leader pricing.
Version 1
62
174) Frito-Lay recognizes that its tortilla chip products are partial substitutes for one another. Its bean and cheese dips and salsa sauces complement its tortilla chips. Frito-Lay uses this knowledge to set prices for each item in order to ensure that the entire line is profitable. This pricing strategy is known as A) bundle pricing. B) price lining. C) customary pricing. D) product-line pricing. E) loss-leader pricing.
175) Toro decided to augment its traditional hardware retail distribution channel by also selling through mass merchandisers such as Walmart and Target and setting prices for its products substantially below those of its traditional hardware outlets. As a result, many hardware stores abandoned Toro products in favor of other manufacturers. This is an example of a firm failing to consider_____Blank effects when setting its final list or quoted price. A) company B) social responsibility C) regulatory D) competitive E) customer
176) The successive price cutting by competitors to increase or maintain their unit sales or market share is referred to as A) everyday even lower pricing. B) a price war. C) fair trade pricing. D) a market war. E) a price reduction.
Version 1
63
177)
A price war refers to
A) competition between sellers and resellers to maintain or attain the largest market share of potential customers. B) conflicts between manufacturers and distributors regarding acceptable percentages they each charge relative to one another. C) when one channel member believes another channel member is engaged in pricing behavior that prevents it from achieving its profitability goals. D) the successive price cutting by competitors to increase or maintain their unit sales or market share. E) the practice of replacing promotional allowances with lower manufacturer list prices.
178)
Marketers should consider price cutting if
A) primary demand for a product class will remain stable. B) the price cut can be made across all items in a product line and all product lines in a product mix. C) the price cut is confined to specific products or customers. D) the firm also increases advertising. E) a product is in the introductory stage of its product life cycle.
179) It is relatively easy to measure the incremental cost of a new advertising campaign; what is not as easy is
Version 1
64
A) measuring the extra fixed cost involved. B) measuring the extra variable cost involved. C) measuring the incremental revenue generated by the new advertising campaign. D) determining whether customers who stop buying the product are reacting negatively to the advertisement or to some other aspect of the product itself. E) determining what percentage of the ad-generated revenue should be reinvested into additional advertisements of the same form.
180) Incremental analysis might take the form of such questions as, “Should we extend our hours to include Sundays?” or “What if we put more apples in the pie?” The basic principle is that A) as long as a marketing action breaks even, the action is worth taking. B) expected incremental revenues from pricing and other marketing actions must more than offset incremental costs. C) you “don’t rock the boat” if your program is making a profit; “leave well enough alone.” D) if you are not willing to take risks, even if the numbers tell you otherwise, your business will ultimately fail. E) marketing and finance are two different animals: “If it feels right in your gut—go for it.”
181) The manager of a small gas station observes that while gasoline sales have been steady, the service side of the business has declined, and mechanics are often idle. He decides to offer a promotion—a $20 off coupon for an oil change that is to be mailed to 800 households within a two-mile radius of the gas station. The cost of printing and mailing is $1,000. The normal cost of an oil change is $40. Materials and labor per oil change cost is $15. How many additional maintenance service jobs must result for the promotion to break even?
Version 1
65
A) 25 jobs B) 40 jobs C) 50 jobs D) 67 jobs E) 200 jobs
182)
The three major types of special adjustments to list or quoted price are A) demand-oriented, cost-oriented, and profit-oriented adjustments. B) one price, flexible price, and discounts. C) discounts, allowances, and marginal adjustments. D) discounts, allowances, and geographical adjustments. E) discounts, incremental costs and revenues, and geographical adjustments.
183) Figure 14-7 shows the three major types of special adjustments to the list or quoted price. Box A represents
Version 1
66
A) demand-oriented price adjustments. B) allowances. C) geographical adjustments. D) discounts. E) customary pricing adjustments.
184) Figure 14-7 shows the three major types of special adjustments to the list or quoted price. Box B represents
A) demand-oriented price adjustments. B) allowances. C) geographical adjustments. D) discounts. E) customary pricing adjustments.
Version 1
67
185) Figure 14-7 shows the three major types of special adjustments to the list or quoted price. Box C represents
A) demand-oriented price adjustments. B) allowances. C) customary pricing adjustments. D) discounts. E) geographical adjustments.
186) A reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called A) the pretax price. B) the list price. C) the manufacturer’s suggested retail price (MSRP). D) a discount. E) a trade-in allowance.
187)
The four types of discounts are
Version 1
68
A) quantity, trade-in, promotional, and cash. B) quantity, seasonal, trade (functional), and cash. C) quantity, seasonal, promotional, and FOB. D) cash, trade (functional), seasonal, and promotional. E) trade-in, promotional, geographic, and functional.
188)
Reductions in unit costs for a larger order are referred to as A) promotional allowances. B) economic order discounts. C) penetration pricing. D) quantity discounts. E) case allowances.
189)
Quantity discounts are
A) price reductions in unit costs for placing a larger order. B) price reductions for placing long-term pre-scheduled orders. C) price reductions to encourage retailers to stock inventory earlier than their normal demand would require. D) BOGOs. E) reductions in unit costs for taking merchandise that will soon be replaced by new and improved versions of the original product.
190) Your local photocopy shop charges 10 cents a copy up to 25 copies, 9 cents a copy for 26 to 99 copies, and 8 cents a copy for 100 copies or more. What kind of adjustment to its list or quoted price of 10 cents per copy is the photocopying service using?
Version 1
69
A) experience-curve pricing B) loss-leader pricing C) a quantity discount D) a promotional discount E) everyday low pricing
191) Mike Morgan, a sales representative for a major food service distributor of Betty Crocker’s Warm Delights, wanted to encourage larger purchases by his grocery customers. Morgan offered a 10 percent discount for buying 1 to 49 cases of Warm Delights within a calendar month, 12 percent for 50 to 99 cases, and 15 percent for 100 or more cases. What type of discount was Morgan offering his customers? A) a seasonal discount B) a quantity discount C) a cash discount D) a trade discount E) a case allowance discount
192) A discount that is based on the size of an individual purchase order rather than a series of repeat orders is referred to as A) a cumulative quantity discount. B) bundle pricing. C) an economic order discount. D) a noncumulative quantity discount. E) a promotional allowance.
193)
Noncumulative quantity discounts are
Version 1
70
A) discounts that are based on a series of orders rather than on the size of an individual order. B) onetime discounts per customer or household. C) onetime discounts that must be used within a certain time frame or they will become null and void. D) discounts used to place new products on supermarket shelves. E) discounts that are based on the size of an individual purchase order rather than a series of orders.
194)
Which statement regarding quantity discounts is most accurate?
A) Noncumulative quantity discounts encourage large individual purchase orders, not a series of orders. B) Noncumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do cumulative quantity discounts. C) Quantity discounts are primarily used to undercut competitors’ prices. D) Noncumulative quantity discounts encourage smaller long-term repeat purchases rather than less frequent larger short-term purchases. E) Quantity discounts can basically be used only once with each reseller or the price will increase.
195) Discounts that are designed to encourage repeat buying by a single customer over a given time period, such as a year, are referred to as A) promotional allowances. B) cumulative quantity discounts. C) cash discounts. D) functional discounts. E) noncumulative quantity discounts.
Version 1
71
196)
Cumulative quantity discounts are
A) reductions in unit costs for a larger order. B) cumulative cash payments or extra amounts of “free goods” awarded sellers in the channel of distribution for undertaking certain advertising or selling activities to promote a product. C) discounts offered to sellers for first-time purchases of a new product as incentives for providing shelf space. D) an accumulation of discounts for every additional rebuy in which the discount becomes incrementally higher. E) discounts that apply to the accumulation of purchases of a product over a given time period, typically a year.
197)
Which statement regarding quantity discounts is most accurate?
A) Cumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do noncumulative quantity discounts. B) Noncumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do cumulative quantity discounts. C) Quantity discounts are primarily used to undercut competitors’ prices. D) Noncumulative quantity discounts encourage smaller long-term repeat purchases rather than less frequent large quantity purchases. E) Quantity discounts are designed to reward wholesalers and retailers for marketing functions they will perform in the future.
198)
Manufacturers use seasonal discounts to
Version 1
72
A) get rid of expired merchandise. B) prevent retailers from purchasing competitors’ products. C) extend the peak seasonal selling season. D) encourage buyers to stock inventory earlier than their normal demand would require. E) temporarily spur primary demand during periods of soft sales, such as the beginning of a month.
199) To encourage buyers to stock inventory earlier than their normal demand would require, manufacturers often use A) noncumulative discounts. B) cumulative discounts. C) seasonal discounts. D) trade discounts. E) functional discounts.
200) To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs, manufacturers offer A) noncumulative discounts. B) cumulative discounts. C) trade discounts. D) seasonal discounts. E) functional discounts.
201) What type of discount would Toro, a domestic yard machinery company, most likely offer its channel members to carry and sell its riding lawn mowers during the winter?
Version 1
73
A) noncumulative discounts B) cumulative discounts C) functional discounts D) seasonal discounts E) trade discounts
202) To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives_____Blank discounts. A) seasonal B) cash C) trade D) quantity E) cumulative
203)
What type of discount to resellers is based in part on where they are in the channel? A) seasonal discounts B) trade discounts C) cash discounts D) promotional allowances E) trade-in allowances
204) Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and
Version 1
74
A) the size of the order. B) the frequency of the order. C) when orders are placed during the year. D) the length of the relationship with the manufacturer. E) the marketing activities they are expected to perform in the future.
205) Suppose a manufacturer quotes price in this form: List price—$100 less 30/10/5. When calculating this trade discount, the first number “30” in the percentage sequence refers to the A) discount to the ultimate consumer. B) manufacturer’s cost. C) discount at the retail end of the channel. D) discount to the channel intermediary closest to the manufacturer. E) original unit cost.
206)
If the terms of the trade discount are listed as “20/10/5,” the number “20” represents
A) 20 percent of the suggested retail price that is available to the retailer to cover costs and provide a profit. B) 20 percent of the suggested wholesale price that is available to the wholesaler to cover costs and provide a profit. C) 20 percent of the suggested retail price that is available to the jobber to cover costs and provide a profit. D) 20 percent of the manufacturer’s suggested retail price that is available to the ultimate consumer. E) 20 percent of the suggested retail price that is the profit margin to the manufacturer.
207)
If the terms of the trade discount are listed 20/10/5, the number “5” represents
Version 1
75
A) 5 percent of the suggested retail price that is available to the retailer to cover costs and provide a profit. B) 5 percent of the suggested retail price that is available to the consumer as a rebate after purchase. C) 5 percent of the suggested retail price that is available to the wholesaler or jobber to cover costs and provide a profit. D) 5 percent of the suggested retail price that is available to the ultimate consumer if purchasing restrictions are met. E) 5 percent of the suggested retail price that is the profit margin to the manufacturer.
208) A manufacturer does marketing research and estimates that consumers will accept a manufacturer’s suggested retail price of $50 for a jacket. The manufacturer expects to offer trade discount terms of 40/10/5 to retailers, wholesalers, and agents in its marketing channel. What price will the manufacturer receive for the jacket? A) $47.50 B) $45.00 C) $30.00 D) $27.50 E) $25.65
209) A manufacturer estimates that consumers will accept a price of $275 for a snowboard. If the manufacturer expects to offer trade discounts of 35/15/5 to retailers, wholesalers, and jobbers, respectively, what price will the manufacturer receive for the snowboard? A) $275.00 B) $178.75 C) $151.94 D) $144.34 E) $100.00
Version 1
76
210) A manufacturer offers a suggested list price for a cashmere sweater of $250. The trade discount is 40/20/10. What amount does the manufacturer expect to receive for the sweater? A) $175.00 B) $225.00 C) $108.00 D) $125.00 E) $100.00
211) Within the channel of distribution for certain types of imported furniture, the typical trade terms are 40/15/10. If a dining room table has a list price of $1,000, how much would the manufacturer sell the table to a jobber for? A) $1,000 B) $600 C) $510 D) $459 E) $400
212) A glassblowing studio makes fine pieces of art glass. It has decided on a retail list price of $2,000 for one of its vases. They sell only through wholesalers and retailers who receive 50/10 terms. How much will the studio receive from selling this vase? A) $2,000 B) $1,000 C) $900 D) $800 E) $100
Version 1
77
213)
To encourage retailers to pay their bills quickly, manufacturers offer them A) quantity discounts. B) cash discounts. C) flexible pricing policies. D) promotional allowances. E) manufacturer’s inducements.
214)
The purpose of a cash discount is to A) reward retailers for making large quantity purchases. B) encourage purchasing items during periods of low demand. C) prevent competitors from obtaining shelf space. D) counteract the introduction of a new product by a competitor. E) encourage retailers to pay their bills promptly.
215)
If the cash discount terms for a $500 purchase are 4/10 net 30, the number 4 refers to A) the percentage markup on the product. B) the percentage discount if the bill is paid within 10 days. C) the percentage increase in price if the bill is not paid within 10 days. D) the discount in dollars per unit if the order is paid on time within 30 days. E) the penalty in dollars if the bill is not paid within 10 days.
216)
If the cash discount terms for a $500 purchase are 4/10 net 30, the number 10 refers to
Version 1
78
A) the percentage discounted if the bill is paid within 30 days. B) the percentage increase in price if the bill is not paid within 10 days. C) the number of days for which the discount is valid. D) the discount in dollars per unit if the order is paid on time within 30 days. E) the penalty in dollars if the bill is not paid within 10 days.
217) A construction company was offered a 3 percent reduction in price off all invoices from a lumberyard for paying within 10 days of issue. The lumberyard was offering a A) trade discount. B) cash discount. C) promotional allowance. D) rebate. E) flexible price.
218) Hormel offers its food distributors a discount of 15% for payment within 10 days on orders of all Jiffy brand products. Hormel is giving its customers a A) functional discount. B) trade-in allowance. C) promotional allowance. D) cash discount. E) everyday low price.
219)
Allowances, like discounts, are
Version 1
79
A) rewards given to retailers to encourage early payment. B) payment extensions given to cash-strapped consumers during the current recession. C) list price deductions based on surges in consumer demand. D) list price deductions based on sudden drops in consumer demand. E) reductions from list or quoted prices to buyers for performing some activity.
220) to as
Reductions from list or quoted prices to buyers for performing some activity are referred
A) allowances. B) subsidies. C) remittances. D) noncumulative deductions. E) list price deductions.
221) A price reduction given when a used product is part of the payment on a new product is referred to as a A) cash discount. B) seasonal discount. C) trade-in allowance. D) promotional allowance. E) subsidy discount.
222)
A trade-in allowance is
Version 1
80
A) a noncash exchange of one product for another of equal or greater value. B) a cash-back payment when a more expensive item is replaced with a less expensive item. C) the return of money based on proof of purchase. D) a cash payment to a retailer for extra in-store support or special featuring of the brand. E) a price reduction given when a used product is part of the payment on a new product.
223) A new car dealer can reduce the price you pay without cutting the list price of a new Ford F-150 pickup truck by offering you a_____Blank of $1,000 for your 2009 Nissan Altima. A) cash discount B) functional discount C) seasonal discount D) trade-in allowance E) promotional allowance
224)
A trade-in allowance is
A) a noncash exchange of one product for another of equal or lesser value. B) an effective way to lower the price a buyer has to pay without formally reducing the list price. C) a cash-back payment when a more expensive item is replaced with a less expensive one. D) the return of money based on proof of purchase. E) a cash payment to a retailer for extra in-store support or special featuring of the brand.
225) Cash payments or an extra amount of free goods awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a
Version 1
81
A) promotional allowance. B) promotional quantity discount. C) seasonal discount. D) promotional purchase inducement. E) dynamic pricing policy.
226)
A promotional allowance is A) a onetime discount to promote the product that must be used within a certain time
frame. B) the cash payments or an extra amount of “free goods” awarded sellers in the marketing channel for undertaking certain advertising or selling activities to promote the product. C) the return of money to promote the product based on proof of purchase. D) a short-term price reduction when consumer demand takes a significant and unexpected dip. E) an incentive, such as trips, cruises, jewelry, etc., presented to brand-loyal customers.
227) The practice of replacing promotional allowances with lower manufacturer list prices is referred to as A) everyday low pricing. B) everyday fair pricing. C) trade-in allowances. D) markdown pricing. E) everyday value pricing.
228)
Everyday low pricing refers to
Version 1
82
A) the pricing strategy of “extreme value” stores to maintain high price-quality images for the products they sell. B) the pricing strategy of starting a product at standard list price and then lowering the price by a certain percentage until it is sold. C) short-term price reductions when consumer demand takes a significant and unexpected dip. D) the practice of replacing promotional allowances with lower manufacturer list prices. E) a form of predatory pricing used solely for the purpose of undercutting competitors’ prices.
229)
The acronym EDLP stands for A) estimated discount leveling policy. B) extended discounts for loss-leader products. C) everyday low pricing. D) either (free) delivery or lower prices. E) extended discounts in lieu of lower pricing.
230) Instead of everyday low prices (EDLP), supermarkets prefer a(n)_____Blank approach, which is based on frequent specials where prices are temporarily lowered for a brief period of time and then raised again. A) fixed-price B) alternative pricing C) Hi-Lo pricing D) bundle-pricing E) dynamic pricing policy
Version 1
83
231) After offering a promotional allowance, the price of a product returns to its regular price level. When this happens, the retail store’s gross margin on that product_____Blank on those items that were bought with the allowance but not sold during the price special promotion. A) decreases, though minimally B) increases substantially C) remains the same D) fluctuates wildly E) vanishes
232)
Which statement about everyday low pricing (EDLP) is most accurate? A) EDLP encourages manufacturer allowances. B) Supermarkets have hailed EDLP as the most effective form of value pricing. C) Some argue that EDLP without price specials is boring for many grocery shoppers. D) EDLP allows supermarkets to use deeply discounted price specials. E) EDLP can increase average retail prices by as much as 10 percent.
233)
Geographic adjustments are made by manufacturers or wholesalers to cover A) production costs. B) administrative costs. C) selling costs. D) promotional costs. E) transportation costs.
234) Manufacturers or even wholesalers make geographical adjustments to list or quoted prices to reflect
Version 1
84
A) warehouse inventory carrying and loading costs. B) the cost of transportation of the products from seller to buyer. C) changes in price due to tariffs the Federal Trade Commission imposes on the transport of goods from the United States. D) changes in price due to fuel excise taxes on inefficient diesel trucks. E) the need some firms have of recouping the costs of developing different versions of their products for different global markets.
235) The two general methods for quoting prices related to transportation costs are FOB origin pricing and A) uniform delivered pricing. B) mode of transportation pricing. C) regional pricing. D) flexible pricing. E) FOB destination pricing.
236)
The acronym FOB stands for A) freight on board. B) free on board. C) freight of buyer. D) forward onto buyer. E) freight owner bonus.
237)
What is free to the buyer in FOB origin pricing?
Version 1
85
A) customer invoicing B) insurance against product liability C) any method of transportation D) cost of loading the product onto the vehicle used to transport it E) all shipping and handling
238)
Free on board (FOB) origin pricing is
A) a method of pricing where the price the seller sets includes all transportation costs. B) a method of pricing where taxes and tariffs are adjusted based upon the city, state, or country of origin of a product and not its destination. C) the price the seller quotes that includes only the cost of loading the product onto or into a vehicle and where the loading is to occur. D) a method of pricing where taxes and tariffs are adjusted based upon the city, state, or country destination of a product and not its place of origin. E) the buyer’s naming the location of this loading as the seller’s factory or warehouse.
239) A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur is referred to as A) free on board (FOB) origin pricing. B) free on board (FOB) destination pricing. C) mode of transportation pricing. D) uniform delivered pricing. E) free on board (FOB) geographical pricing.
Version 1
86
240) Central Ice Machine Co. is located in Omaha, Nebraska, and sells Frick, Sullair, York, and Fes Fuller ammonia refrigeration parts. The company ships these parts using FOB origin pricing. Which statement about the shipment of a Frick reciprocating compressor is most accurate? A) Central Ice Machine will pay all shipping costs. B) Central Ice Machine splits the shipping costs with its customers regardless of where the compressor is shipped. C) It will cost Central Ice Machine more to ship to Charlotte, North Carolina, than to Topeka, Kansas. D) A buyer in Albany, New York, will pay significantly more shipping charges than a buyer in Lincoln, Nebraska. E) All buyers will pay the same shipping costs, regardless of the destination.
241) The fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season. In Milan, she negotiates a good price for a quantity of shoes in a range of sizes and styles, FOB factory. This means that A) the factory selects the mode of transportation, pays the freight charges, and is responsible for any damage because the seller retains title to the goods until they are delivered to Neiman Marcus. B) Neiman Marcus selects the mode of transportation, pays freight charges, and is responsible for any damage while the shoes are in transit because title passes to the firm at the point of loading. C) Neiman Marcus and the factory will split the freight costs. D) the factory pays the freight cost to a designated port (airport or seaport) in the United States while Neiman Marcus pays the freight from that port to its final destination within the United States. E) the factory passes the title when the goods are loaded but will pay all shipping costs.
242)
Uniform delivered pricing refers to
Version 1
87
A) the price the seller quotes that includes all transportation costs. B) the price the seller quotes that excludes all transportation costs. C) the price the seller quotes that includes a fixed allowance whereby the buyer pays all additional costs. D) the price the seller quotes includes a fixed percentage of transportation costs for which it will be responsible. E) the guarantee that a retailer will be charged the same transportation fee for all its outlets regardless of where they are located.
243)
With uniform delivered pricing, the price the seller quotes
A) includes all transportation costs. B) excludes all transportation costs. C) includes a fixed allowance whereby the buyer pays any costs above that allowance. D) includes a fixed percentage of transportation costs for which the seller will be responsible. E) will guarantee that a retailer will be charged the same transportation fee for all its outlets regardless of where they are located.
244)
The price the seller quotes that includes all transportation costs is referred to as A) inclusive transport pricing. B) geomodal pricing. C) uniform delivered pricing. D) FOB origin pricing. E) destination pricing.
245) A method of pricing where the price the seller quotes includes all transportations costs, and the seller is responsible for any damage that may occur because the seller retains title to the goods until delivered to the buyer, is referred to as
Version 1
88
A) destination pricing. B) FOB origin pricing. C) geographical allowance. D) uniform delivered pricing. E) transportation allowance.
246) Many cruise lines pay the customer’s airfare to the point of cruise departure. What type of price adjustment are the cruise lines using? A) skimming pricing B) promotional pricing C) loss-leader pricing D) prestige pricing E) uniform delivered pricing
247) A pricing method where all buyers pay the same delivered price for the products, regardless of their distance from the seller, is referred to as A) single-zone pricing. B) multiple-zone pricing. C) freight-absorption pricing. D) FOB origin pricing. E) basing-point pricing.
248) A company placing an order from the Lab Safety Supply catalog is instructed to add $25 to the total cost of the order to pay for shipping regardless of the buyer’s location. Which method of shipping does this catalog supplier use?
Version 1
89
A) FOB origin pricing B) multiple-zone pricing C) freight-absorption pricing D) single-zone pricing E) basing-point pricing
249)
When a firm divides its selling territory into geographic areas, it is referred to as A) single-zone pricing. B) multiple-zone pricing. C) geographic pricing. D) FOB origin pricing. E) basing-point pricing.
250)
Multiple-zone pricing refers to
A) establishing a distribution center in each major geographical region or zone in which a firm’s product is sold. B) establishing retail outlets in the same vicinity as all the firm’s manufacturing plants. C) a firm’s decision to charge the same price regardless of geographic regions or zones where it operates. D) a firm’s division of its selling territory into geographic areas or zones. E) a firm’s decision to divide its business between multiple carriers to provide flexibility should transportation prices rise with one and fall with another.
251) After extensive analysis, a mail order company has decided to use multiple-zone pricing. In which step of the price-setting process would the mail order firm have made this decision?
Version 1
90
A) Step 6: Make special adjustments to the list or quoted price. B) Step 4: Select an approximate price level. C) Step 2: Estimate demand and revenue. D) Step 1: Identify price constraints and objectives. E) Step 5: Set list or quoted price.
252) A company in Virginia that manufactures and sells peanut brittle to retailers charges higher shipping costs for orders sent to customers living west of the Mississippi River. This Virginia company is using A) single-zone pricing. B) FOB origin pricing. C) freight-absorption pricing. D) multiple-zone pricing. E) basing-point pricing.
253) A pricing strategy where the buyer is allowed to deduct freight expenses from the list price of the goods so the seller pays the transportation costs is referred to as A) FOB factory pricing. B) FOB absorption pricing. C) FOB origin pricing. D) basing-point pricing. E) FOB with freight-allowed pricing.
254)
Another name for freight-absorption pricing is
Version 1
91
A) factory pricing. B) FOB absorption pricing. C) FOB with freight-allowed pricing. D) basing-point pricing. E) FOB origin pricing.
255) Selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer is referred to as A) FOB origin pricing. B) basing-point pricing. C) single-zone pricing. D) multiple-zone pricing. E) freight-absorption pricing.
256)
Basing-point pricing refers to
A) selecting a single geographical location from which the list price for products plus freight expenses are charged to the seller. B) selecting two or more geographical locations from which the list price for products plus freight expenses are charged to the seller. C) having all buyers pay the same delivered price for the products, regardless of their distance from the seller. D) a firm dividing a selling territory into geographic areas or zones and charging the same delivered price to all buyers within the same zone, but charging different prices in for different zones depending on distance from the factory or warehouse. E) selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer.
257)
For which of these products is its manufacturer most likely to use basing-point pricing?
Version 1
92
A) pet food B) furniture C) crystal glass bowls D) coal E) cut flowers
258)
Which statement about geographical adjustments to price is most accurate?
A) In FOB origin pricing, the seller selects the mode of transportation. B) In FOB with freight-allowed pricing, the buyer subtracts the transportation costs from the list price. C) Multiple-zone pricing is sometimes referred to as “spider web” pricing. D) Basing-point pricing seems to have been used in industries where freight expenses are only a minor part of the total cost to the buyer. E) Geographical adjustments can be subject to government regulation if the firm cannot supply objective data (lists of mountains, rivers, weather conditions, etc.) explaining why those adjustments need to be made.
259)
Which statement about geographical adjustments to price is most accurate?
A) In FOB origin pricing, the seller selects the mode of transportation. B) In FOB with freight-allowed pricing, the seller must pay for all transportation costs. C) Multiple-zone pricing is sometimes referred to as “spider web” pricing. D) Basing-point pricing methods have been used in industries where freight expenses are a significant part of the total cost to the buyer. E) Geographical adjustments can be subject to government regulation if the firm cannot supply objective data (lists of mountains, rivers, weather conditions, etc.) explaining why those adjustments need to be made.
Version 1
93
260) Five pricing practices are scrutinized because of potential unethical or illegal actions, including which of these? A) price matching B) discount pricing C) price fixing D) regional rollback pricing E) volume discounts
261) All of these are pricing practices that are closely scrutinized because of potential unethical or illegal actionsexcept which? A) price discrimination B) predatory pricing C) showrooming D) price fixing E) deceptive pricing
262)
A conspiracy among firms to set prices for a product is referred to as A) price discrimination. B) price fixing. C) predatory pricing. D) tying arrangements. E) exclusive dealing.
263)
Price fixing is
Version 1
94
A) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. B) the practice of charging a very low price for a product with the intent of driving competitors out of business. C) the practice of charging different prices to different buyers for goods of like grade and quality. D) a conspiracy among firms to set prices for a product. E) a seller’s requirement that the purchaser of one product also buy another product in the line.
264)
Price fixing is illegal under the A) Sherman Act. B) Consumer Goods Pricing Act. C) Robinson-Patman Act. D) Federal Trade Commission Act. E) Clayton Act.
265)
Two or more competitors explicitly or implicitly setting prices is referred to as A) competitive collusion. B) vertical price fixing. C) horizontal price fixing. D) lateral price fixing. E) price cooperation.
266) Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called
Version 1
95
A) competitive collusion. B) price cooperation. C) horizontal price fixing. D) lateral price fixing. E) vertical price fixing.
267)
Vertical price fixing refers to
A) two or more competitors explicitly or implicitly setting prices. B) the practice of charging different prices to different buyers for goods of like grade and quality. C) controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price. D) a conspiracy among firms to set prices for a product or service. E) a seller’s requirement that the purchaser of one product also buy another product in the line.
268) Vertical price fixing involves controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price. This practice is also called A) price discrimination. B) predatory pricing. C) a tying arrangement. D) resale price maintenance. E) exclusive dealing.
269)
Resale price maintenance was declared illegal in 1975 under the
Version 1
96
A) Sherman Act. B) Consumer Goods Pricing Act. C) Robinson-Patman Act. D) Federal Trade Commission Act. E) Clayton Act.
270) Mark Johnson, the manager of a discount office furniture store, was approached by the manufacturer’s representative on behalf of a marketer of a popular and profitable line of storage racks. The representative implied that if Johnson didn’t raise the retail prices for the storage racks to those paid by other customers, Johnson’s supply of racks would be severely curtailed. The manufacturer’s representative is guilty of attempting A) horizontal price fixing. B) resale price maintenance. C) price discrimination. D) predatory pricing. E) bait and switch pricing.
271)
Price discrimination is
A) the practice of charging different prices to different buyers for goods of like grade and quality. B) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. C) the practice of charging a very low price for a product with the intent of driving competitors out of business. D) a conspiracy among firms to set prices for a product or service. E) a seller’s requirement that the purchaser of one product also buy another product in the line.
Version 1
97
272) The practice of charging different prices to different buyers for goods of like grade and quality is referred to as A) horizontal price fixing. B) resale price maintenance. C) price discrimination. D) predatory pricing. E) bait and switch pricing.
273)
Price discrimination is illegal under the A) Sherman Act. B) Consumer Goods Pricing Act. C) Robinson-Patman Act. D) Federal Trade Commission Act. E) Anti-Competitive Act.
274) In a controversial move, Amazon.com was caught manipulating its prices. Avid DVD buyers, buying in quantity for resale, found that the online retailer was offering different customers different prices for the same DVD, and complained loudly. Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked. Amazon was caught attempting A) horizontal price fixing. B) price discrimination. C) resale price maintenance. D) predatory pricing. E) bait and switch pricing.
275) The Robinson-Patman Act allows for price differentials to different customers under several conditions. Which of these practices would be permitted? Version 1
98
A) using price differentials when price differences charged to different customers do not exceed the differences in the cost of manufacture, sale, or delivery resulting from different methods or quantities in which such goods are sold or delivered to buyers B) using price differentials when price differences are given on the basis of other family businesses C) using price differentials when charging different prices to different buyers for goods of like grade or quality D) using price differentials when charging different prices on the basis of religious affiliation E) using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications
276) The Robinson-Patman Act covers promotional allowances as well as discounts. To legally offer promotional allowances to buyers, the seller must do so on a(n)_____Blank basis to all buyers distributing the seller’s products. A) proportionally equal B) limited C) time-restricted D) geographical E) across-the-board
277)
Price deals that mislead consumers fall into the category of A) predatory pricing. B) deceptive pricing. C) price discrimination. D) caveat emptor. E) resale price maintenance.
Version 1
99
278)
Advertising such as “Retail Value $100, Our Price $85” is deceptive if A) a verified and substantial number of stores in the market area do not price the item at
$100. B) even one store in that retail chain does not price the item at $100. C) a competitor is selling the same item for $75 on sale and the normal price is only $85. D) there is not enough product on hand at that price to satisfy the needs of the store’s regular customer traffic. E) the markup on the original price is more than 200 percent.
279)
A claim that a price is below a manufacturer’s suggested or list price may be deceptive if
A) the items for sale had been purchased from another retailer. B) the items for sale were part of a manufacturer’s promotional allowance. C) the items were part of a bulk order. D) few or no sales occur at that price in a retailer’s market area. E) the items were purchased from the manufacturer at a higher price and the sale was part of a loss-leader promotion.
280) Store frequently show items for sale with a price that appears to be reduced. Former price comparisons are deceptive if A) the high price tags were from a previous owner or retailer and were purchased that way from the reseller, even though that price didn’t originate at the store. B) the items for sale were part of a manufacturer’s promotional allowance. C) a high price was set for the purpose of establishing a reference for a price reduction. D) the items for sale were available at the higher price for less than 30 days. E) the items were purchased from the manufacturer at a higher price and the sale was part of a loss-leader promotion.
Version 1
100
281) Deceptive pricing practices are outlawed by legislation and enforced by which federal agency? A) Consumer Protection Agency B) U.S. Department of Justice C) Federal Communications Commission D) U.S. Department of Commerce E) Federal Trade Commission
282) The practice of offering a bargain that is conditional on the purchase of other products may exist when a buyer is offered the “1-Cent Sales,” the “Buy 1, Get 1 Free,” or the “Get 2 for the Price of 1” deal. Such pricing is legal only if A) the seller is using bundle pricing. B) there is a reasonable amount of inventory to satisfy the needs of the retailers normal traffic flow. C) the first items are sold at the regular price, not a price inflated for the offer. D) the product is not outdated. E) the quantity available to the customer is not limited.
283) To promote their business, some psychics advertise on television free tarot-card readings and other insights into their customers’ futures. Unfortunately, this “free reading” has cost some unsuspecting callers as much as $700 in phone charges. This sort of pricing practice would be primarily monitored by the A) Consumer Protection Agency. B) U.S. Department of Justice. C) Federal Trade Commission. D) Federal Communications Commission. E) Consumer Product Safety Commission.
Version 1
101
284) When a firm offers a very low price on a product to attract customers to a store and once in the store the customer is persuaded to purchase a higher-priced item, the practice is referred to as A) predatory pricing. B) deceptive pricing. C) price discrimination. D) caveat emptor. E) bait and switch.
285) A hardware store advertises a ⅜-inch Black and Decker Power Drill for $29.95. You enter the store intending to purchase the drill. The salesperson informs you that they are all sold out. She tells you that the “sale” drills were factory seconds and that if you are going to be doing any kind of serious woodworking, you should buy the Model 3309, which sells for $49.99. This scenario is which type of illegal pricing practice? A) predatory pricing B) price discrimination C) price fixing D) bait and switch E) conditional bargains
286)
Which statement about geographical pricing is most accurate?
Version 1
102
A) Geographical pricing is generally legal and not normally a concern in the U.S. legal system. B) Geographical pricing has come under more government scrutiny than any other pricing policy. C) FOB freight-allowed pricing practices are illegal. D) FOB origin pricing is legal. E) Basing-point pricing is the only form of geographical pricing that is not under some type of legal restriction.
287) The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as A) price fixing. B) predatory pricing. C) price discrimination. D) deceptive pricing. E) geographical pricing.
288)
Predatory pricing is
A) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. B) the practice of charging different prices to different buyers for goods of like grade and quality. C) the practice of charging a very low price for a product with the intent of driving competitors out of business. D) a conspiracy among firms to set prices for a product or service. E) a seller’s requirement that the purchaser of one product must also buy another product in the line.
Version 1
103
289)
Predatory pricing is A) most effective in the growth stage of the product life cycle. B) a popular technique preferred by online businesses. C) illegal but often difficult to prosecute. D) most effective in business-to-business marketing. E) one of the most widely used pricing practices for professional marketers.
290) In the 1980s, typical round-trip coach airfares from the East Coast to London were more than $500. Then Freddie Laker introduced the People’s Express, a competing service into Newark at $350. Major airlines matched his price—and continued to do so until they drove People’s Express out of business. Then prices shot back up to over $500. A lawsuit filed under the Sherman Act resulted in the judgment that the major airlines had explicitly tried to destroy a competitor. The experience of People’s Express is an example of_____Blank on the part of the major airlines. A) price fixing B) price discrimination C) deceptive pricing D) predatory pricing E) pricing constraints
291) Bob Biltmore has a large business designing websites for startup companies throughout the Midwest. In recent months, Biltmore has noticed many more competitors advertising similar services. In an attempt to eliminate the upstart competition, Biltmore has decided to charge a very low price for his services, a price so low his competitors will be forced out of business. After the competition has been driven out, Biltmore plans to raise the price of his design services. Biltmore is planning to engage in the illegal and unethical practice of
Version 1
104
A) price fixing. B) price inflation. C) deceptive pricing. D) competitive pricing. E) predatory pricing.
292)
Which statement about the legal and regulatory aspect of pricing is most accurate?
A) The Robinson-Patman Act deals with predatory pricing. B) The Consumer Goods Pricing Act is the only federal legislation that deals directly with pricing issues. C) The Sherman Act deals only with vertical price fixing. D) The Federal Trade Commission Act deals with predatory pricing, deceptive pricing, and geographical pricing issues. E) The Consumer Goods Pricing Act and the Robinson-Patman Act deal with price discrimination.
293)
Carmex uses all of these approaches to setting the price of its productsexcept which? A) profit-oriented B) competition-oriented C) cost-oriented D) elasticity-oriented E) demand-oriented
294) A single jar of original formula Carmex has different prices for the product depending upon where it is sold, but each price will end in a nine ($0.99 at mass merchandisers like Walmart or Target, and between $1.59 and $1.79 in drug and food retailers such as Walgreens and Kroger). This pricing strategy is called
Version 1
105
A) standard pricing. B) odd-even pricing. C) customary pricing. D) everyday lower pricing. E) at-market pricing.
295)
What are the six major steps involved in setting prices?
296)
What are three special adjustments to the list or quoted price?
297) There are four common approaches to selecting an approximate price level. List them and provide a brief description for each one.
298) List four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.
Version 1
106
299)
When is skimming pricing an effective strategy?
300)
What are the conditions favoring the use of penetration pricing?
301)
Explain why odd-even pricing may be successful.
302)
Give an example of yield management pricing and explain why it is used.
303)
What is standard markup pricing and when would it be used?
Version 1
107
304)
What is experience-curve pricing and how does it relate to marketing strategies?
305)
What is loss-leader pricing and why do retailers use it?
306)
What is the difference between a fixed-price policy and a dynamic pricing policy?
307) What are the four kinds of discounts that are especially important in marketing pricing strategy?
308)
What is the difference between noncumulative and cumulative quantity discounts?
Version 1
108
309) Why do manufacturers offer seasonal discounts to channel members? Provide an example of how one would work.
310) What are the two general methods for quoting prices related to transportation costs? Explain how each is used.
311) Define the four kinds of uniform delivered pricing methods and give an example of the use of each.
312) The Consumer Goods Pricing Act, the Sherman Act, the Federal Trade Commission Act, and the Robinson-Patman Act all address different aspects of deceptive pricing. Select one example for each act and explain which aspects of the practice would be considered illegal.
313) one.
What are the five most common deceptive pricing practices? Give an example of each
Version 1
109
314)
Explain predatory pricing.
315)
Explain the deceptive pricing practice known as bait and switch.
316)
Which of the four approaches does Carmex use to set prices for its products?
317) What is the difference between an EDLP retailer and a high-low retailer? Why does Carmex charge them a different price?
Version 1
110
Answer Key Test name: Chap 14_16e_Kerin 1) E 2) D 3) C 4) B 5) A 6) B 7) C 8) A 9) D 10) B 11) E 12) C 13) A 14) A 15) B 16) C 17) B 18) E 19) C 20) A 21) D 22) A 23) C 24) B 25) E 26) D Version 1
111
27) E 28) C 29) E 30) C 31) D 32) D 33) A 34) A 35) D 36) E 37) A 38) C 39) D 40) C 41) E 42) E 43) B 44) D 45) E 46) A 47) D 48) C 49) D 50) A 51) C 52) E 53) A 54) D 55) A 56) C Version 1
112
57) D 58) C 59) C 60) B 61) D 62) A 63) D 64) C 65) B 66) D 67) E 68) C 69) C 70) C 71) A 72) E 73) D 74) C 75) B 76) C 77) B 78) E 79) B 80) D 81) B 82) C 83) E 84) B 85) D 86) D Version 1
113
87) C 88) A 89) A 90) C 91) A 92) D 93) C 94) D 95) E 96) E 97) C 98) E 99) D 100) E 101) A 102) B 103) D 104) B 105) D 106) A 107) E 108) D 109) B 110) C 111) D 112) E 113) D 114) E 115) C 116) B Version 1
114
117) A 118) A 119) A 120) D 121) D 122) D 123) B 124) B 125) C 126) D 127) A 128) E 129) B 130) B 131) E 132) D 133) C 134) D 135) B 136) D 137) B 138) A 139) E 140) B 141) A 142) B 143) B 144) B 145) E 146) C Version 1
115
147) C 148) E 149) C 150) A 151) B 152) B 153) E 154) B 155) B 156) D 157) C 158) B 159) D 160) E 161) D 162) B 163) B 164) C 165) C 166) B 167) D 168) E 169) B 170) E 171) A 172) C 173) B 174) D 175) E 176) B Version 1
116
177) D 178) C 179) C 180) B 181) E 182) D 183) D 184) B 185) E 186) D 187) B 188) D 189) A 190) C 191) B 192) D 193) E 194) A 195) B 196) E 197) A 198) D 199) C 200) D 201) D 202) C 203) B 204) E 205) C 206) A Version 1
117
207) C 208) E 209) D 210) C 211) D 212) C 213) B 214) E 215) B 216) C 217) B 218) D 219) E 220) A 221) C 222) E 223) D 224) B 225) A Key term definition—promotional allowances. 226) B 227) A 228) D 229) C 230) C 231) B 232) C 233) E 234) B 235) A Version 1
118
236) B 237) D 238) C 239) A 240) D 241) B 242) A 243) A 244) C 245) D 246) E 247) A 248) D 249) B 250) D 251) A 252) D 253) E 254) C 255) B 256) E 257) D 258) B 259) D 260) C 261) C 262) B 263) D 264) A 265) C Version 1
119
266) E 267) C 268) D 269) B 270) B 271) A 272) C 273) C 274) B 275) A 276) A 277) B 278) A 279) D 280) C 281) E 282) C 283) C 284) E 285) D 286) D 287) B 288) C 289) C 290) D 291) E 292) D 293) D 294) B
Version 1
120
CHAPTER 15 1) Eddie Bauer has the distinction of being one of the first companies to fully implement a “brick, click, and flip” strategy, which makes it a A) cross-channel marketer. B) multichannel marketer. C) industrial marketer. D) direct marketer. E) remarketer.
2) Managing Eddie Bauer’s_____Blank is a complex task due to starkly different objectives: efficiently keeping the products most desired by customers replenished and displayed on store shelves for one channel, while providing wider product assortments and even customized products shipped from a distribution center or direct from suppliers for another. A) competitors B) retail partners C) supply chain D) retail outlets E) discounted merchandising arm
3) Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a A) marketing channel. B) parallel distribution. C) retailer. D) wholesaler. E) distributor.
Version 1
1
4) You probably own several pairs of shoes. Perhaps you purchased those shoes at retail stores located in a shopping mall and not directly from the manufacturer. Many products like shoes are brought to you from a series of other individuals or firms known as a A) marketing network. B) distribution hierarchy. C) marketing chain. D) distribution matrix. E) marketing channel.
5) A_____Blank can be compared to a pipeline through which water flows—making possible the flow of products and services from a producer, through intermediaries, to a buyer. A) marketing chain B) marketing hierarchy C) marketing agent D) marketing channel E) marketing network
6) Marcos stops at the shopping mall to purchase a new pair of jeans from an H&M store. He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store. This pipeline is actually a A) marketing tunnel. B) consumer market. C) marketing channel. D) transactional conduit. E) distribution matrix.
7)
A middleman is
Version 1
2
A) a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. B) a person or firm whose sole responsibility is to find distributors for a manufacturer’s products. C) any intermediary between a manufacturer and end-user markets. D) a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. E) an intermediary that sells to ultimate consumers.
8)
Any intermediary between a manufacturer and end-user markets can be called a A) retailer. B) middleman. C) wholesaler. D) broker. E) distributor.
9) Jaffar Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto, Canada. He personally shops the world over, handpicks, and orders authentic handmade rugs. He has them shipped to Canada, where he sells them through his brick-and-mortar stores and his www.tabrizi.com website. In terms of the marketing channel, Tabrizi is acting as a(n) A) consumer. B) agent. C) wholesaler. D) brokerage firm. E) middleman.
10) Any intermediary with legal authority to act on behalf of the manufacturer but that does not take title to products is referred to as a(n)
Version 1
3
A) dealer. B) agent. C) retailer. D) wholesaler. E) distributor.
11)
An agent is
A) any intermediary with legal authority to act on behalf of the manufacturer but that does not take title to products. B) independent firms or individuals whose principal function is to transport goods. C) any intermediary that takes ownership of a manufacturer’s goods or services and then finds multiple buyers for them. D) a manufacturer’s paid representative and acting voice in initial sales transactions. E) a manufacturing “matchmaker” that actively seeks out potential consumers and brings them to retailers.
12) Several artists in Charleston, South Carolina, show and sell their work in an art gallery downtown. The gallery is owned by an art lover who does not buy the paintings but displays the work of various artists. She collects a percentage on each piece sold. In terms of the marketing channel, the gallery is a(n) A) ultimate consumer. B) manufacturer. C) wholesaler. D) agent. E) clearinghouse.
13)
A wholesaler is
Version 1
4
A) the independent firm or individual whose principal function is to bring buyers and sellers together. B) any intermediary that takes ownership of a manufacturer’s products or services and then finds multiple buyers for those products or services. C) an intermediary that sells to other intermediaries, usually to retailers in consumer markets. D) an intermediary that sells to consumers. E) a manufacturing “matchmaker” that actively seeks out potential consumers and brings them to retailers.
14) An intermediary that sells to other intermediaries, usually to retailers in consumer markets, is referred to as a(n) A) broker. B) agent. C) retailer. D) distributor. E) wholesaler.
15) Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as A) retailers. B) brokers. C) ultimate consumers. D) wholesalers. E) agents.
16)
A retailer is
Version 1
5
A) an intermediary that sells only to other intermediaries. B) any intermediary between a manufacturer and industrial markets. C) an intermediary that sells to other distributors. D) an intermediary that takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. E) an intermediary that sells to consumers.
17)
_____Blank is an intermediary that sells to consumers. A) An agent B) A retailer C) A wholesaler D) A distributor E) A broker
18) Lara lives in a rural area but near the suburbs. She buys produce, eggs, and honey from her neighbors and on most weekends she runs a very popular stand at a busy farmer’s market. In terms of the marketing channel, Lara’s farmer’s market booth would be considered the A) ultimate consumer. B) agent. C) wholesaler. D) retailer. E) distributor.
19) Your best friend just bought a longboard at BC Surf & Sport. In terms of the marketing channel, BC Surf & Sport is a(n)
Version 1
6
A) ultimate consumer. B) manufacturer. C) wholesaler. D) retailer. E) distributor.
20)
Distributor is
A) an imprecise term for intermediaries that perform a variety of distribution functions, including selling, maintaining inventories, and extending credit. B) the term for an intermediary that sells only to manufacturers. C) the term for an intermediary that takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. D) the term for an intermediary that sells only to consumers. E) the term for an intermediary that sells only to other intermediaries.
21) An imprecise term for intermediaries that perform a variety of functions, including selling, maintaining inventories, extending credit is A) agent. B) broker. C) retailer. D) wholesaler. E) distributor.
22) An even more imprecise term than distributor,_____Blank can mean the same as retailer, wholesaler, and more.
Version 1
7
A) broker B) order taker C) agent D) dealer E) consumer
23)
Automakers such as Chrysler, Ford, and General Motors utilize_____Blank networks. A) dealer B) broker C) retailer D) distributor E) wholesaler
24) Intermediaries perform three basic functions. In Figure 15-2, Box A represents a(n) _____Blank function.
Version 1
8
A) middleman B) logistical C) facilitating D) operational E) transactional
25) Intermediaries perform three basic functions. In Figure 15-2, B represents a(n) _____Blank function.
A) middleman B) logistical C) facilitating D) operational E) transactional
Version 1
9
26) Intermediaries perform three basic functions. In Figure 15-2, C represents a(n) _____Blank function.
A) middleman B) logistical C) facilitating D) operational E) transactional
27)
The three basic functions intermediaries perform are A) planning, implementing, and evaluating functions. B) implementation, accommodating, and contractual functions. C) contractual, facilitating, and logistical functions. D) transactional, logistical, and facilitating functions. E) facilitating, accommodating, and implementation functions.
28) Intermediaries performing a transactional function in distribution are engaged in buying, selling, and
Version 1
10
A) storing. B) financing. C) transporting. D) risk taking. E) merchandising.
29)
Risk taking as a transactional function refers to
A) unpredictable costs of transportation because of fuel prices. B) product liability from poorly produced products that become defective. C) the need to stock merchandise in anticipation of sales, though it could become unsaleable. D) trying new promotional campaigns, despite an unproven message to buyers. E) investments in new-product development before a target market has been established.
30) In terms of distribution, when marketing channel members are engaged in buying, selling, and risk taking, they are performing_____Blank functions. A) logistical B) merchandising C) facilitating D) implementation E) transactional
31) A marketing channel intermediary that purchases merchandise for resale at retail outlets is engaging in a(n)_____Blank function.
Version 1
11
A) transactional B) logistical C) facilitating D) risk-taking E) assorting
32) Purchasing products for resale or acting as an agent for supply of a product would be an example of a(n)_____Blank function. A) logistical B) facilitating C) risk-taking D) transactional E) assorting
33)
Logistical function activities include_____Blank products and services. A) buying and selling B) assorting, storing, sorting, and transporting C) financing and grading D) risk-taking E) marketing information and research
34) When marketing channel members are engaged in assorting, storing, sorting, and transporting products and services, they are performing_____Blank functions.
Version 1
12
A) logistical B) merchandising C) facilitating D) implementation E) transactional
35) Creating product assortments from several sources to serve customers is an example of a_____Blank function performed by channel intermediaries. A) transactional B) facilitating C) selling D) logistical E) risk-taking
36) Assembling and protecting products at a convenient location to offer better customer service is an example of a_____Blank function performed by channel intermediaries. A) transactional B) facilitating C) grading D) risk-taking E) logistical
37) Physically moving a product to customers is an example of a_____Blank function performed by channel intermediaries.
Version 1
13
A) transactional B) logistical C) facilitating D) selling E) sorting
38) When Hunter went to the hardware store looking for gloves to wear while refinishing a table, he bought one pair because that was all he needed. But when the hardware store purchased the gloves, it purchased a case containing 100 pairs of identical gloves. Which logistical function did the hardware store perform for Hunter and its other customers? A) marketing B) buying C) sorting D) assorting E) risk-taking
39)
Facilitating functions performed by channel intermediaries include A) buying and selling. B) assorting, sorting, and storing. C) financing, grading, and marketing information and research. D) risk taking. E) transportation.
40) In terms of distribution, when marketing channel members are engaged in financing, grading, and marketing information and research, they are performing the_____Blank function.
Version 1
14
A) logistical B) transformational C) implementing D) facilitating E) transactional
41) Intermediaries perform facilitating functions, which assist producers in making products and services more attractive to buyers. These activities include A) producing, assembling, and distributing. B) transportation and distribution. C) buying, selling, and risk-taking. D) assorting, sorting, and storing. E) financing, grading, and marketing information and research.
42) Extending credit to customers is an example of a_____Blank function performed by channel intermediaries. A) transactional B) logistical C) facilitating D) buying E) risk-taking
43) Inspecting, testing, or judging products and assigning them quality grades is an example of a_____Blank function performed by channel intermediaries.
Version 1
15
A) transactional B) logistical C) storing D) facilitating E) risk-taking
44) Southern pine lumber is visually inspected and placed into categories like “Select Structural,” “No. 1,” and “No. 2.” These categories reflect characteristics of the wood and are related to its suggested uses. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries? A) grading B) sorting C) risk-taking D) marketing E) assorting
45) Though uninformed consumers focus largely on the extra markups from each, channel intermediaries deliver four utilities that provide A) self-development opportunities. B) relationship management between themselves. C) value creation. D) promotional efforts. E) opportunities for recouping cost overruns.
46) are
Marketing channels help create value for consumers through four utilities. These utilities
Version 1
16
A) product, price, promotion, and place. B) form, function, risk-taking, and selling. C) time, place, form, and possession. D) transactional, logistical, facilitating, and marketing. E) buying, selling, storing, and transporting.
47)
A snack vending machine located in a university building creates both_____Blank utility. A) time and place B) place and form C) form and creation D) possession and form E) application and place
48)
Having a product or service where consumers want it is_____Blank utility. A) form B) place C) time D) possession E) location
49)
Enhancing a product or service to make it more appealing to buyers is_____Blank utility. A) time B) place C) possession D) form E) transactional
Version 1
17
50) A textile artist can buy fabric, thread, and batting, create an heirloom quilt, and then sell the finished work to customers in a kiosk decorated with some of the quilts produced to entice customers who shop at the local mall. By designing the quilts and kiosk with aesthetic value, the artist creates_____Blank utility. A) application B) possession C) time D) place E) form
51) Home Depot offers_____Blank utility when it offers construction equipment, trucks, and trailers for day rental so consumers need not buy these for single use. A) time B) form C) place D) possession E) transactional
52) As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in A) variety. B) scope. C) depth. D) scale. E) length.
Version 1
18
53) _____Blank exists when producers and ultimate consumers deal one-on-one with each other. A) A strategic channel alliance B) A direct channel C) A horizontal marketing exchange D) An indirect channel E) A dual distribution channel
54)
A direct channel exists when
A) producers and end users deal with each other on a one-on-one basis. B) the producer and consumer perform numerous channel functions. C) a firm reaches different buyers by employing two or more different types of channels for the same basic product. D) an intermediary sells to other intermediaries, usually to retailers in consumer markets. E) an agent or broker brings ultimate consumers to manufacturers.
55)
In a direct channel, all channel functions are performed by A) retailers. B) wholesalers. C) producers. D) brokers and agents. E) middlemen.
56) When Dell Computer sells made-to-order PCs to customers online via its website, it is an example of which type of marketing channel?
Version 1
19
A) indirect channel B) strategic channel alliance C) consumer channel D) dual distributive channel E) direct channel
57) The Schwan’s Company uses route sales representatives who sell prepared meals to consumers from refrigerated trucks. This particular method of distribution is referred to as a(n) A) indirect channel. B) direct channel. C) facilitated channel. D) customer-service channel. E) truck-jobber channel.
58) Members of a high-school glee club sold home-baked cupcakes at school to raise money. The students selling their cupcakes to classmates would be an example of a(n) A) personalized distribution. B) nonpermanent distribution. C) informal channel of distribution. D) direct channel of distribution. E) indirect channel of distribution.
59) A channel that includes intermediaries that are between the producer and consumers and perform numerous channel functions is referred to as a(n)
Version 1
20
A) indirect channel. B) direct channel. C) multilevel channel. D) full-service channel. E) limited-service channel.
60)
Indirect channels for consumer products
A) occur when one firm’s marketing channels are used to sell another firm’s products. B) include producers and end users dealing directly with each other. C) include intermediaries that are between the producer and consumer and perform numerous channel functions. D) are arrangements whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. E) occur when a retailer sells its product in a store and on the Internet.
61) A commonly used indirect channel moves product from producer to retailer to consumer. Companies like Target and The Home Depot buy directly from manufacturers rather than wholesalers. This channel is used when A) the retail outlets are regionally located. B) the cost of maintaining inventory is low. C) there is little if any seasonal demand. D) the risk lies solely with the manufacturer. E) the retailer is large and can buy in large quantities from a producer.
62) A commonly used indirect channel moves product from producer to retailer to consumer. Automobile manufacturers use this channel because
Version 1
21
A) access to inventory is unpredictable. B) the cost of inventory makes it too expensive to use a wholesaler. C) there is little if any seasonal demand. D) the risk lies solely with the manufacturer. E) the retail outlets are regionally located.
63) The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there A) are only a few large manufacturers but many small retailers. B) are low-cost, low unit volume goods. C) is too large an inventory to be carried by wholesalers. D) are many small manufacturers and many small retailers. E) are many manufacturers with a limited inventory competing for a small group of retailers.
64) The most indirect marketing channel is employed where many intermediaries are used to help coordinate the distribution of the product. Which product would most likely be marketed using this kind of channel? A) Aspen dental services B) Toyota automobiles C) Leslie pool supplies D) Jaipur rugs made in India E) Hershey’s candy bars
65) A small electronics company has begun production of a line of high-quality, professional studio-model components targeted at audiophiles who shop at thousands of specialty stores across the United States. How should the electronics company distribute its new products?
Version 1
22
A) Use its established indirect marketing channel. B) Distribute directly to mass market consumers. C) Distribute through agents that sell to specialty electronics stores that would feature the new line. D) Sell directly to specialty electronics stores that would feature the new line. E) Establish its own chain of electronics retail stores.
66) In marketing channels for business products, an intermediary that performs a variety of marketing channel functions including selling, stocking, delivering a full product assortment, and financing is referred to as a(n) A) agent. B) industrial distributor. C) wholesaler. D) retailer. E) channel captain.
67)
An industrial distributor is an intermediary that
A) performs a variety of marketing channel functions involving selling, stocking, delivering a full product assortment, and financing. B) maintains its own sales force and performs all channel functions. C) deals exclusively with the selling, stocking, and delivery of raw materials used by manufacturers in the production of its products. D) deals with a single product line within a single industry. E) performs functions involving selling, stocking, and delivery of industrial goods but is unable to provide financing due to the normally large expenditures.
68) Industrial distributors perform functions that are most like which intermediary in the consumer products marketing channel?
Version 1
23
A) manufacturers B) retailers C) agents D) wholesalers E) brokers
69) International Products, a U.S. firm that sells industrial cleansers and lubricants, wanted to sell its product to factories, hospitals, and labs in China, but it did not have the necessary expertise. As a result, International Products hired Asia Marketing & Management to sell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing & Management is an example of a(n) A) agent. B) wholesaler. C) global broker. D) retailer. E) industrial distributor.
70) The most common intermediaries in the marketing channels for business products are industrial distributors and A) manufacturers. B) retailers. C) agents. D) wholesalers. E) brokers.
71)
Digital marketing channels refer to
Version 1
24
A) a combination of electronic and traditional intermediaries to make products and services available for consumption or use by consumers or organizational buyers. B) a firm’s computer-driven inventory management through an entirely mechanized warehousing system. C) intranet systems linking all aspects of production within a single firm. D) the information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings. E) the name given to all Internet addresses that end in “.com” to indicate that these websites are commercial entities that distribute goods and services.
72) Using a combination of electronic and traditional intermediaries to make products and services available for consumption or use by consumers or organizational buyers is referred to as A) electronic distribution channels. B) virtual marketing channels. C) World Wide Web networks. D) digital marketing channels. E) Web 3.0 marketing channels.
73) Which of these products or services must typically be provided by traditional andnot by digital marketing channels? A) engineering design B) software C) orthopedic surgery D) music E) education
Version 1
25
74) MachineTools.com sells grinders, boring mills, and engine lathes. Its website lists products from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale. MachineTools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this A) electronic government channel. B) virtual marketing channel. C) World Wide Web network. D) mediated channel. E) digital marketing channel.
75) Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as A) an indirect marketing channel. B) a direct to consumer marketing channel. C) a multimarketing channel. D) channel bypass marketing. E) personal selling.
76)
A direct to consumer marketing channel refers to
A) the distribution of products and services directly from the manufacturer’s production site to end users. B) the traditional chain of distribution from manufacturer to retailer to consumer. C) the use of agents that represent a single producer and are responsible for the entire marketing function of that producer. D) a method of distribution that allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson. E) a method of distribution that allows consumers to buy products through direct personal interaction with the manufacturer’s representatives in order to provide more personalized service.
Version 1
26
77) Mail-order selling, catalog sales, telemarketing, interactive media (websites), and televised home shopping are all examples of A) direct to consumer marketing channels. B) indirect marketing channels. C) multimedia marketing channels. D) virtual marketing channels. E) personal selling.
78) When you order a sweater from an L.L.Bean mail-order catalog, what type of marketing channel are you and the company using? A) cash and carry marketing channel B) intensive distribution channel C) selective distribution channel D) indirect marketing channel E) direct to consumer marketing channel
79) The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online is referred to as A) direct marketing. B) indirect marketing. C) intensive marketing. D) multichannel marketing. E) digital marketing.
Version 1
27
80) Multichannel marketing is the blending of different_____Blank channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. A) pricing B) production C) communication and delivery D) direct and indirect E) promotion
81) _____Blank marketing seeks to leverage the value-adding capabilities of both digital marketing and traditional delivery. Physical stores can serve as pickup and return locations, and websites can help consumers do their homework before visiting a store. A) Direct to consumer B) Indirect C) Intensive D) Multichannel E) Automated
82)
Multichannel marketing A) creates greater elasticity of demand for its products. B) can leverage the value-adding capabilities of different channels. C) creates greater inelasticity of demand for its product. D) allows firms to legally circumvent paying taxes on revenue generated by online sales. E) allow customers to avoid shipping and handling charges.
83) When consumers shop online and then pick up their merchandise in a nearby store it is known as
Version 1
28
A) showrooming. B) bait and switch. C) BOPUS. D) price shopping. E) BORIS.
84) Multichannel marketing facilitates_____Blank, which means consumers shop online and then return unwanted merchandise to a nearby store. A) showrooming B) bait and switch C) BOPUS D) price shopping E) BORIS
85) An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as A) a strategic channel alliance. B) multiple level selling. C) parallel distribution. D) dual distribution. E) recursive distribution.
86)
Dual distribution is
Version 1
29
A) a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products. B) an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. C) the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. D) the use of professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum impact. E) a practice whereby one firm’s marketing channel is used to sell another firm’s products.
87) GE large appliances are sold directly to home and apartment builders, while retail stores, including Lowe’s home centers, sell these products to consumers. This is an example of A) a strategic channel alliance. B) multiple level selling. C) parallel distribution. D) dual distribution. E) recursive distribution.
88) Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains such as Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to the remaining independent drugstores in the United States. What method of distribution best describes the method used by pharmaceutical companies? A) dual distribution B) vertical distribution C) horizontal distribution D) direct distribution E) exclusive distribution
Version 1
30
89) Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment, and in racks in car washes where customers who are waiting for their cars can browse and purchase cards. This is which type of marketing channel strategy? A) a strategic channel alliance B) multichannel distribution C) parallel distribution D) dual distribution E) direct distribution
90)
One firm’s marketing channel being used to sell another firm’s products is referred to as A) dual distribution. B) cooperative distribution. C) an integrated channel alliance. D) a multichannel venture. E) a strategic channel alliance.
91)
A strategic channel alliance is
Version 1
31
A) an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. B) a practice whereby one firm’s marketing channel is used to sell another firm’s products. C) the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. D) an arrangement whereby companies reduce distribution costs by sharing facilities, equipment, and transportation. E) a practice whereby consumers can interact with various advertising media to buy products without a face-to-face meeting with a salesperson.
92) Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and timeconsuming? A) dual distribution B) cooperative distribution C) strategic channel alliance D) global distribution alliance E) multichannel distribution
93) Nestlé and General Mills have_____Blank to distribute General Mills products like Cheerios under the Nestlé brand name in about 130 markets worldwide. A) multichannel distribution B) a direct marketing channel C) a cooperative distribution channel D) a strategic channel alliance E) a dual distribution agreement
Version 1
32
94) Starbucks relies on PepsiCo’s distribution network in the United States to sell its cold, ready-to-drink coffee products and Nestle's distribution network to sell its packaged coffee beans and coffee pods in supermarkets and convenience stores. These firms are using A) multichannel distribution. B) a direct marketing channel. C) a cooperative distribution channel. D) a strategic channel alliance. E) a dual distribution agreement.
95) In an example of a(n)_____Blank, Kraft Foods uses the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan. A) direct marketing channel B) industrial distribution system C) dual distribution system D) franchising operation E) strategic channel alliance
96) CPW (Cereals Partners Worldwide) is a_____Blank designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé. A) dual distribution partnership B) multichannel distribution system C) cooperative distribution channel D) strategic channel alliance E) bilateral trade cooperative
Version 1
33
97) Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as A) integrated marketing systems. B) horizontal marketing systems. C) vertical marketing systems. D) functional marketing systems. E) cooperative marketing systems.
98)
Vertical marketing systems are
A) professionally managed geographically dispersed marketing channels designed to achieve channel economies and maximize marketing impact. B) professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. C) retailer-sponsored cooperatives where small, independent retailers form an organization that operates a wholesale facility cooperatively. D) professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. E) channel partnerships that share responsibility for ordering and physically distributing each other’s products.
99)
The three major types of vertical marketing systems are contractual, administered, and A) integrated. B) cooperative. C) delegated. D) manufacturer-dominated. E) corporate.
100)
Corporate vertical marketing systems are
Version 1
34
A) small, independent retailers that form an organization that operates a wholesale facility cooperatively. B) professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. C) the combination of successive stages of production and distribution under a single ownership. D) professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. E) a contractual arrangement between a parent company and an individual or firm that allows the individual or firm to operate a certain type of business under an established name and according to specific rules.
101) The combination of successive stages of production and distribution under a single ownership is referred to as a(n)_____Blank marketing system. A) contractual vertical B) corporate vertical C) integrated D) corporate horizontal E) contractual horizontal
102)
Corporate vertical marketing systems A) can use either forward integration or backward integration but not both. B) increase distribution costs. C) increase investment but decrease fixed costs. D) are only effective with low-end consumer products. E) offer more control over supply sources or resale of products.
Version 1
35
103) A large company produces paint and other home decorating products. Its goal is to choose the marketing channel arrangement that will give it the most control over supply sources. Which marketing channel system should this company choose? A) a contractual vertical marketing system B) an administered vertical marketing system C) a corporate vertical marketing system D) an integrated marketing system E) a corporate horizontal marketing system
104) Cessna is considered the volume leader in the executive jet market. It has been described as “almost totally vertically integrated.” This quote means that Cessna A) does not fall under the jurisdiction of any federal regulatory agency. B) owns several of the entities that would make up the traditional marketing channel. C) has eliminated economies of scale. D) has achieved a high level of social responsibility. E) uses outsourcing for all component parts and materials.
105) The Walt Disney Company launched a paid video streaming service called Disney+ that features many of the movies made at its studios and other assets it owns like Pixar, Marvel, Star Wars, and National Geographic content. Its use of Disney+ to distribute content to consumers is an example of a(n) A) corporate vertical marketing system. B) integrated marketing system. C) contractual vertical marketing system. D) corporate horizontal marketing system. E) contractual horizontal marketing system.
Version 1
36
106) When a producer owns an intermediary at the next level down in the marketing channel, it is referred to as A) horizontal integration. B) forward integration. C) parallel integration. D) lateral integration. E) backward integration.
107)
Forward integration refers to
A) a retailer that owns a manufacturing operation. B) a wholesaler that owns a manufacturing operation. C) retailers that form a strategic channel alliance with manufacturers to purchase products at better prices since they are able to place much larger orders. D) a producer that owns an intermediary at the next level down in the marketing channel. E) channels in which all members own stock in the manufacturer’s company.
108) Apple now operates over 500 Apple retail stores around the world to sell its innovative products such as the iPhone and Apple Watch. Apple uses A) dual distribution. B) backward integration. C) forward integration. D) horizontal integration. E) strategic channel alliances.
109)
When a retailer owns a manufacturing operation, it is referred to as
Version 1
37
A) forward integration. B) lateral integration. C) a joint venture. D) horizontal integration. E) backward integration.
110) Tiffany & Co. manufactures about half of the fine jewelry items for sale in its stores and boutiques worldwide. Tiffany & Co. practices A) backward integration. B) forward integration. C) vertical integration. D) joint venturing. E) horizontal integration.
111)
A contractual vertical marketing system is an arrangement whereby
A) privately owned distributors and retailers integrate their efforts, on a contractual basis, to obtain greater functional economies and marketing impact than they could achieve alone. B) independent production and distribution firms integrate their efforts, on a contractual basis, to obtain greater functional economies and marketing impact than they could achieve alone. C) a manufacturer offers a limited number of franchise licenses to restrict the number of franchisees within a given geographical region. D) a firm reaches different buyers by employing two or more different types of channels for the same basic product. E) a firm formally designates by contract one channel member—whether producer, wholesaler, or retailer—to coordinate, direct, and support all other channel members.
Version 1
38
112) There are three variations of contractual systems: wholesaler-sponsored voluntary chains, retailer-sponsored cooperatives, and A) franchising. B) service-oriented voluntary chains. C) channel-dominated voluntary chains. D) distributorship cooperatives. E) direct marketing.
113) A vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts is referred to as a(n) A) service-sponsored retail franchise system. B) retailer-sponsored cooperative. C) administered vertical marketing system. D) manufacturer-sponsored retail franchise system. E) wholesaler-sponsored voluntary chain.
114)
IGA grocery stores are an example of A) service-sponsored retail systems. B) wholesaler-sponsored voluntary chains. C) retailer-sponsored cooperatives. D) administered cooperative systems. E) manufacturer-sponsored cooperatives.
115) Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively?
Version 1
39
A) retailer-sponsored cooperative B) service-sponsored retail system C) administered cooperative system D) manufacturer-sponsored cooperative E) wholesaler-sponsored voluntary chain
116)
A retailer-sponsored cooperative involves
A) small, independent retailers forming an organization that operates a wholesale facility cooperatively. B) a vertical marketing system that uses a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management. C) an agreement among small, privately owned manufacturers to pool their resources by sharing installations, heavy equipment, and warehousing they would be unable to afford on their own. D) an agreement among retailers to pool their resources by purchasing services such as signage, snow removal, and trash removal that affects the physical space (strip mall, etc.) they all share. E) small, independent retailers that pool their resources to finance store expansion programs.
117) Ace Hardware is a national_____Blank that allows its members, retailers of paint and hardware products, to concentrate their buying power through a wholesaler they have organized and to plan collaborative promotional and pricing activities. A) service-sponsored retail system B) administered cooperative system C) retailer-sponsored cooperative D) manufacturer-sponsored cooperative E) wholesaler-sponsored voluntary chain
Version 1
40
118) A contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules is referred to as A) a corporate vertical marketing system. B) a wholesaler-sponsored voluntary chain. C) a retailer-sponsored cooperative. D) franchising. E) an administered vertical marketing system.
119)
Franchising refers to
A) a contractual agreement between multiple retailers sharing the same business mission to operate with a consistent business model to not only achieve enhanced buying power but also increase customer loyalty. B) a contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules. C) purchasing the name, branding, and raw materials from one organization and transferring it to another. D) a practice whereby one firm’s marketing channel is used to sell another firm’s product. E) selling an idea to a larger company and letting it do all the manufacturing, distribution, and marketing.
120)
Franchising is one form of a(n)
Version 1
41
A) corporate vertical marketing system. B) horizontal marketing system. C) administered vertical marketing system. D) wholesaler-sponsored voluntary system. E) contractual vertical marketing system.
121) There are four popular types of franchising, one of which is a_____Blank franchise system. A) government-sponsored B) service-sponsored C) horizontal-marketing D) contractual-sponsored E) customer-oriented
122)
The four most popular types of franchise arrangements are
A) service-sponsored franchise systems, service-sponsored retail franchise systems, manufacturer-sponsored wholesale franchise systems, and manufacturer-sponsored retail franchise systems. B) service-sponsored retail franchise systems, corporate vertical marketing systems, wholesaler-sponsored voluntary chains, and service-sponsored franchise systems. C) manufacturer-sponsored wholesale franchise systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains. D) manufacturer-sponsored retail franchise systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains. E) administered vertical marketing systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains.
Version 1
42
123) Ford uses a(n)_____Blank, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions. A) service-sponsored producer franchise system B) service-sponsored retail franchise system C) manufacturer-sponsored wholesale franchise system D) manufacturer-sponsored retail franchise system E) administered vertical marketing system
124) Abraham has developed a lawn care service that will revolutionize the lawn care industry. He has limited operating capital and yet still wants a wide distribution of his new product. Which option would be best for Abraham? A) He should develop an administered vertical marketing system. B) He should establish a corporate vertical marketing system. C) He should open branch offices around the country to provide the exposure he needs. D) He should establish a wholesaler-sponsored voluntary chain. E) He should establish a service-sponsored retail franchise system.
125) A(n)_____Blank is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers that carbonate it and market the finished product to retailers. A) service-sponsored franchise system B) service-sponsored retail franchise system C) manufacturer-sponsored wholesale franchise system D) manufacturer-sponsored retail franchise system E) administered vertical marketing system
126) Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a(n)
Version 1
43
A) customer-generated franchising system. B) service-sponsored retail franchise system. C) agent-sponsored wholesale franchise system. D) manufacturer-sponsored retail franchise system. E) administered vertical marketing systems.
127) A(n)_____Blank exists when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines. A) service-sponsored retail franchise system B) manufacturer-sponsored wholesale franchise system C) manufacturer-sponsored retail franchise system D) administered vertical marketing system E) service-sponsored franchise system
128) A(n)_____Blank is common in the employment services and tax services industries where franchisors license individuals or firms to dispense a service under a trade name and specific guidelines. A) service-sponsored franchise system B) service-sponsored retail franchise system C) manufacturer-sponsored wholesale franchise system D) manufacturer-sponsored retail franchise system E) administered vertical marketing system
129) The type of vertical marketing system that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership is referred to as a(n)
Version 1
44
A) corporate vertical marketing system. B) integrated vertical marketing system. C) contractual vertical system. D) administered vertical marketing system. E) interactive vertical marketing system.
130)
An administered vertical marketing system is a marketing system
A) that achieves coordination at successive stages of production and distribution by contractual agreements between channel members. B) that achieves coordination at successive stages of production and distribution by cooperation and consensus among all members of the marketing chain. C) that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership. D) in which a channel member (producer, wholesaler, or retailer) is elected to coordinate, direct, and support all other channel members. E) that is run and coordinated completely outside the traditional chain of distribution by a firm that specializes in that industry’s specific logistics needs.
131) Which statement best describes the difference between a corporate vertical marketing system and an administered vertical marketing system?
Version 1
45
A) Administered vertical marketing systems gain power through ownership while corporate vertical marketing systems gain power through contractual agreement. B) Administered vertical marketing systems gain power through the size and influence of one channel member and through ownership, rather than through contractual arrangement. C) Administered vertical marketing systems gain power through contractual agreements and ownership rather than through size. D) Administered vertical marketing systems are usually larger and more profitable than corporate vertical marketing systems. E) Administered vertical marketing systems achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership.
132) Procter & Gamble can obtain cooperation from supermarkets in terms of displaying, promoting, and pricing its products, given its broad assortment of brand-name products. Which type of vertical marketing system does Procter & Gamble represent? A) corporate vertical marketing system B) integrated vertical marketing system C) contractual vertical marketing system D) administered vertical marketing system E) forward integration vertical marketing system
133) Walmart can obtain cooperation from manufacturers in terms of product specifications, price levels, and promotional support, given its position as the world’s largest retailer. Walmart is an example of a(n) A) service-sponsored retail system. B) administered vertical marketing system. C) retailer-sponsored cooperative. D) administered cooperative system. E) manufacturer-sponsored cooperative.
Version 1
46
134) When choosing a marketing channel or intermediary, it is important to ask several key questions, including which of these? A) How many of the firm’s competitors will be using the same channels? B) Which channels have strategic channel alliances with other resellers? C) How long have the channel members and intermediaries been in business? D) Who is responsible for negotiating the channel or intermediary contracts? E) Which channel and intermediaries will provide the best coverage of the target market?
135) In terms of target market coverage, density refers to the number of_____Blank in a geographical area. A) target market customers B) competitors C) wholesalers D) retail stores E) stakeholders
136)
In marketing,_____Blank describes the number of stores in a geographical area. A) density B) breadth C) depth D) mass E) concentration
137)
The three degrees of distribution density are
Version 1
47
A) intensive, extensive, and selective. B) extensive, concentrated, and selective. C) intensive, exclusive, and selective. D) extensive, pervasive, and concentrated. E) concentrated, exclusive, and intensive.
138) When a firm tries to place its products or services in as many outlets as possible, the density of distribution is referred to as_____Blank distribution. A) intensive B) extensive C) selective D) exclusive E) concentrated
139)
Intensive distribution is
A) the distribution of products or services in markets where there are currently no other competitors. B) the distribution of products or services where the producer owns the entire channel of distribution. C) the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. D) the density of distribution whereby a firm tries to place its products or services in as many outlets as possible. E) the density of distribution whereby a firm chooses to place its products or services in very few retail outlets in a specific area to generate excitement.
140)
Candy bars most likely would be sold using which type of target market coverage?
Version 1
48
A) exclusive distribution B) direct distribution C) intensive distribution D) dual distribution E) selective distribution
141) Snack foods, bottled water, and batteries most likely would use which type of distribution density? A) extensive distribution B) intensive distribution C) selective distribution D) exclusive distribution E) concentrated distribution
142) When only one retailer in a geographical area carries a firm’s products, the density of distribution is referred to as_____Blank distribution. A) intensive B) extensive C) selective D) concentrated E) exclusive
143)
Exclusive distribution is
Version 1
49
A) the distribution of products or services in markets where there are currently no other competitors. B) the distribution of products or services where the producer owns the entire channel of distribution. C) the density of distribution in which a firm tries to place its products or services with only one retail outlet in a specified geographical area. D) the density of distribution in which a firm tries to place its products or services in as many outlets as possible. E) the density of distribution in which a firm tries to place its products or services in a few retail outlets in a specific area.
144) There are three degrees of distribution density, one of which is intensive distribution. What would best be considered the opposite of this degree of distribution density? A) exhaustive distribution B) specialized distribution C) selective distribution D) concentrated distribution E) exclusive distribution
145) Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that it A) is the most common form of distribution intensity. B) eliminates channel conflict. C) is usually chosen for convenience. D) has market coverage benefits. E) limits head-to-head competition for an identical product.
Version 1
50
146) John Deere manufactures and distributes industrial and farm equipment. This type of equipment is considered to be a specialty product. Which type of market coverage does John Deere most likely use? A) intensive distribution B) exclusive distribution C) extensive distribution D) selective distribution E) private label distribution
147) Bentley Motors makes one of the world’s most prestigious automobile brands, targeting the ultra-luxury segment. Which type of market coverage does Bentley most likely use? A) intensive distribution B) extensive distribution C) selective distribution D) exclusive distribution E) private label distribution
148) Which type of distribution density does Piaget use when the maker of fine jewelry and watches distributes its products through a single retailer in select cities in the United States? A) intensive distribution B) extensive distribution C) selective distribution D) exclusive distribution E) private label distribution
149)
Manufacturers most likely would use exclusive distribution for which products?
Version 1
51
A) Timex watches, Hanes underwear, and Nike shoes B) Chanel perfume, Steinway pianos, and Baccarat crystal C) Oreos, Teddy Grahams, and Nilla Wafers D) paper clips, light bulbs, and file folders E) Stouffer’s meals, Breyer’s Ice Cream, and Coca-Cola
150) When a firm tries to place its products in a few retail outlets in a specific geographical area, it is referred to as_____Blank distribution. A) intensive B) extensive C) selective D) exclusive E) concentrated
151)
Selective distribution is
A) the density of distribution whereby a firm tries to place its products or services in as many outlets as possible. B) the distribution of products or services in markets where there are currently no other competitors. C) the distribution of products or services where the producer owns the entire channel of distribution. D) the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. E) the density of distribution whereby a firm tries to place its products or services in a few retail outlets in a specific area.
152) Which type of distribution lies between the two distribution extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products?
Version 1
52
A) intensive distribution B) extensive distribution C) exclusive distribution D) selective distribution E) concentrated distribution
153) The distribution intensity associated with products such as Dell personal computers is referred to as A) intensive distribution. B) selective distribution. C) extensive distribution. D) exclusive distribution. E) concentrated distribution.
154)
Which is the most common form of distribution intensity used today? A) selective distribution B) intensive distribution C) extensive distribution D) exclusive distribution E) concentrated distribution
155) In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories, one of which is
Version 1
53
A) profitability. B) convenience. C) quality. D) brand-name recognition. E) availability.
156)
All of these are buyer requirements for choosing a marketing channelexcept which? A) pre- or postsale services B) convenience C) variety D) transparency E) information
157) A critical consideration in choosing a marketing channel when buyers have limited knowledge or desire specific data about a product or service is to provide A) postsale services. B) seller adaptability. C) information. D) convenience. E) presale services.
158) Which buyer requirement would be most important in choosing a channel for a financial service for a novice investor who is interested in setting up a retirement account?
Version 1
54
A) information B) context C) variety D) pre- and postsale services E) adaptation
159) Most Apple retail stores have a Genius Bar staffed with highly trained personnel who can help customers with their purchases of iPads, iPhones, and other Apple products and services. Which buying requirement is Apple satisfying with its Genius Bar? A) context B) information C) variety D) pre- and postsale services E) adaptation
160) Driving time, proximity, and hours of operation for stores, and the usability of a website are all examples of which buyer requirement? A) information B) variety C) pre- or postsale services D) adaptability E) convenience
161) By promising to change engine oil and filters quickly, Jiffy Lube is appealing to which buyer requirement?
Version 1
55
A) information B) convenience C) variety D) pre- or postsale services E) adaptability
162) Customer convenience is an important consideration when choosing a marketing channel. A commonly held view among website developers is the “_____Blank rule,” a belief that consumers will abandon their efforts to enter or navigate a website if download time exceeds this amount of time. A) five second B) six second C) seven second D) eight second E) 10 second
163) Channels are typically designed to satisfy one or more of four consumer buying requirements. When a meal-delivery service allows its members to use the Internet to select menus and notify the company if they want to suspend deliveries for a week, the service is appealing to which buyer requirement? A) information B) convenience C) variety D) pre- or postsale services E) adaptability
Version 1
56
164) Buyers are interested in having numerous competing and complementary items from which to choose. The buyer requirement for_____Blank is satisfied through the breadth and depth of products and brands that intermediaries carry. A) information B) convenience C) variety D) pre- or postsale services E) adaptability
165) Tylenol and Advil are two brands of over-the-counter products for ailments such as colds, headaches, sore throats, arthritis aches, fever, and general pain. Both of their manufacturers seek distribution of their products through pharmacies such as Walgreens and CVS. These companies seek channels and intermediaries that will satisfy a buyer’s desire for A) variety. B) information. C) pre- or postsale service. D) convenience. E) adaptability.
166) Items such as large household appliances that require installation, delivery, and credit demonstrate the buyer requirement of A) information. B) convenience. C) variety. D) pre- or postsale services. E) adaptability.
Version 1
57
167) One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Which statement is most accurate? A) The more responsibilities a channel member takes in terms of distribution, advertising, and selling expenses, the greater the potential for manufacturer profitability. B) The more responsibilities the manufacturer assumes relative to its channel members, the greater the potential for profitability. C) The extent to which channel members share costs determines the margins received by each member and by the channel as a whole. D) While channel members can increase profitability by taking on distribution and selling expenses, advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability. E) Profitability is not related to the length or nature of the distribution channel but determined by the manufacturer.
168) Charlesburg Furniture sells its furniture through furniture store chains, independent furniture stores, and department store chains, mostly in the southern United States. The company has traditionally allocated its marketing funds for cooperative advertising, in-store displays, and retail sales support on the basis of dollar sales by channel. According to the Marketing Dashboard, it should consider
Version 1
58
A) increasing the marketing budget for furniture store chains. B) focusing more selling efforts on department stores to increase the number of outlets. C) discontinue advertising for furniture store chains. D) allocating a larger proportion of its advertising budget to independent furniture stores. E) reducing distribution in independent furniture stores.
169) Charlesburg Furniture sells its furniture through furniture store chains, independent furniture stores, and department store chains, mostly in the southern United States. The company has traditionally allocated its marketing funds for cooperative advertising, in-store displays, and retail sales support on the basis of dollar sales by channel. Based on the information presented in the Channel Sales and Profit Marketing Dashboard, which channel of distribution should the furniture manufacturer consider dropping?
A) department store chains B) furniture store chains C) independent furniture stores D) warehouse clubs E) mass merchandisers
170) When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, it is referred to as
Version 1
59
A) distributor dissension. B) marketing channel discord. C) partnership divergence. D) channel conflict. E) partner dissonance.
171)
Channel conflict refers to
A) disagreements over the trade discounts allotted to each level of the distribution chain by the Federal Trade Commission. B) regulatory restrictions limiting the number of distributors that can sell a producer’s products. C) situations in which one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. D) situations in which one distributor carries two competing brands. E) situations in which the producer does not allow other channel members to have input regarding product specifications or benefits.
172)
The two types of channel conflict are A) wholesaler and retailer. B) horizontal and vertical. C) transactional and promotional. D) external and internal. E) producer and consumer.
173)
Which type of vertical marketing systems isleast likely to experience channel conflict?
Version 1
60
A) corporate vertical marketing system B) wholesaler-sponsored voluntary chain C) retailer-sponsored cooperative D) franchise system E) administered vertical marketing system
174)
Conflict that occurs between two different levels in a marketing channel is referred to as A) lateral conflict. B) horizontal conflict. C) vertical conflict. D) distributor conflict. E) contractual conflict.
175)
Vertical conflict is conflict that occurs between
A) two members in the same level of a marketing channel. B) two different levels in a marketing channel. C) members of upper management who make the marketing channel decisions and lower management who must implement these decisions. D) a firm’s and its customers’ goals. E) two producers of the same product vying for the same distribution channel members.
176)
Which of these would be a source of vertical conflict?
Version 1
61
A) Foot Locker decides to open a retail outlet next to a Nike store in a shopping mall. B) A restaurant serves both Coke and Pepsi to its patrons. C) Ansible Technologies Ltd. sells its portable planetariums to both colleges and high schools. D) Microsoft provides HP laptops more prominent point-of-purchase locations in its retail stores than comparable laptops from Sony. E) Long John Silver’s decides to serve grilled burgers in addition to seafood.
177) Channel conflict that arises when one member bypasses another member and sells or buys products directly is referred to as A) horizontal conflict. B) channel circumvention. C) lateral conflict. D) disintermediation. E) dual distribution.
178)
Disintermediation refers to channel conflict that arises when
A) a channel member severs relationships with other channel members to work for or with a competing manufacturer. B) disagreements are resolved by a third party. C) a channel member bypasses another member and sells or buys products directly. D) disagreements are resolved through a binding arbitration from a panel of representatives from all channel members involved. E) the entire distribution chain is eliminated, when a company sets up its own wholesaler and retailer network.
Version 1
62
179) Channel conflict occurred when American Airlines decided to terminate its relationship with Orbitz and Expedia, two online ticketing and travel sites, and sell directly through AA Direct Connect. This is an example of A) horizontal conflict. B) corporate conflict. C) forward integration conflict. D) lateral conflict. E) disintermediation.
180) Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers that carry the same manufacturer’s brands, is referred to as A) horizontal conflict. B) corporate conflict. C) vertical conflict. D) lateral conflict. E) contractual conflict.
181)
Horizontal conflict refers to conflict that occurs between
A) two different levels in a marketing channel. B) members of upper management who make the marketing channel decisions and lower management who must implement these decisions. C) two producers of the same product vying for the same distribution channel members. D) two members at the same level of a marketing channel. E) a firm’s and its customers’ goals.
182)
Two sources of horizontal conflict are common, including when
Version 1
63
A) a manufacturer increases its distribution coverage in a geographical area. B) disagreements arise over how profit margins are distributed among channel members. C) manufacturers believe wholesalers or retailers are not giving their products adequate attention. D) a channel member bypasses another member and sells or buys products direct. E) dual distribution causes conflict when similar types of retailers carry different brands.
183) When independent Goodyear tire dealers learned that Goodyear Tire Company decided to sell its brands through Sears, Walmart, and Sam’s Club, many dealers switched to competing tire makers. This is an example of A) corporate conflict. B) vertical conflict. C) horizontal conflict. D) administered conflict. E) contractual conflict.
184)
All of these are likely to produce channel conflictexcept which?
A) A manufacturer increases its distribution coverage in a geographical area. B) A channel member bypasses another member and sells or buys products directly. C) Changes are made regarding how profit margins are distributed among channel members. D) Manufacturers believe wholesalers or retailers are not giving their products adequate attention. E) A channel member wants to use vendor-managed inventory.
185) A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a
Version 1
64
A) channel champion. B) channel general. C) channel captain. D) channel director. E) channel coordinator.
186)
A channel captain is
A) a member of a distribution channel that takes control through hegemony (power is not assigned, but assumed). B) a channel member (producer, wholesaler, or retailer) that coordinates, directs, and supports other channel members. C) a channel team member known for expertise in cutting through red tape. D) a person responsible for implementing a firm’s mission statement, linking all members of the marketing channel through a common goal. E) the person with greatest authority who represents his or her channel in the distribution chain.
187) A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is A) stakeholder position. B) familial ties to other channel members. C) expertise. D) longevity in the industry. E) geographic proximity to the manufacturing plant.
188) Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart’s power is its
Version 1
65
A) economic influence. B) expertise. C) identification with a particular channel member. D) legitimate rights through contracts. E) political connections.
189) American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply’s power is its A) economic influence. B) expertise. C) identification with a particular channel member. D) legitimate rights through contracts. E) governmental contracts.
190) Clothing manufacturers may compete to sell their offering at prestigious retailer Neiman Marcus. The source of Neiman Marcus’ power is_____Blank since distribution with this retailer may increase the status of a smaller brand. A) economic influence B) expertise C) channel members’ desire for identification with Neiman Marcus D) legitimate rights through contracts E) longevity as an upscale retailer
Version 1
66
191) Bombardier is the leading marketer of corporate jets. Its brand name is well known and respected in the corporate jet market. The aircraft company relies on outside suppliers for design support and to share development costs and market risks, but Bombardier is considered the leader in determining design and marketing of its planes. For its newest plane, Bombardier has about 30 prime suppliers, and about 10 of those have been involved since the initial design phase. Bombardier is an example of a A) product champion. B) channel general. C) channel director. D) channel coordinator. E) channel captain.
192) Sports Port, a motorcycle and fishing boat retailer in Minnesota, was the world’s largest dealer for Crestliner fishing boats. To meet customer demands, the owner of Sports Port works with a wide variety of channel members, ranging from the manufacturer to trucking firms, other retailers, and even detailers. Such a diverse channel of distribution often resulted in channel conflict. However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members. The owner of Sports Port serves as the_____Blank in the channel of distribution. A) wholesaler B) producer C) channel spokesperson D) channel captain E) channel arbitrator
193) The_____Blank and the Justice Department monitor channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act.
Version 1
67
A) Consumer Product Safety Commission B) Better Business Bureau C) Federal Trade Commission D) American Marketing Association E) Department of Commerce
194) The_____Blank specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies. A) Sherman Act B) Robinson-Patman Act C) Federal Trade Commission Act D) Clayton Act E) Consumer Goods Pricing Act
195) The_____Blank has been used to prosecute resale restrictions, which are a supplier’s attempt to stipulate to whom distributors may resell the supplier’s products and in what specific geographical areas or territories they may be sold. A) Sherman Act B) Robinson-Patman Act C) Federal Trade Commission Act D) Clayton Act E) Consumer Goods Pricing Act
196) The Clayton Act prohibits, restricts, or influences all of these channel strategies and practicesexcept which?
Version 1
68
A) exclusive dealing B) refusal to deal C) resale restrictions D) vertical integration E) tying arrangements
197) Figure 15-7 shows six channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition. Box A represents which federal legislation meant to curb them?
A) Sherman Act B) Robinson-Patman Act C) Federal Trade Commission Act D) Consumer Goods Pricing Act E) Clayton Act
Version 1
69
198) Figure 15-7 shows six channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition. Box A represents which federal legislation meant to curb them?
A) Sherman Act B) Robinson-Patman Act C) Federal Trade Commission Act D) Consumer Goods Pricing Act E) Clayton Act
199)
Dual distribution can violate the Sherman Act and the Clayton Act if the
A) prices charged for items sold through one channel are different from the prices charged for the same items in another channel. B) manufacturer’s behavior is viewed as lessening competition by eliminating wholesalers or retailers. C) manufacturer has a corporate vertical marketing system with one channel and an administered vertical system with the other. D) manufacturer uses both a direct and indirect marketing channel. E) product is not available through more than one marketing channel.
200)
Vertical integration can lead to legal prosecution if
Version 1
70
A) there is potential to lessen competition or create a monopoly. B) mergers create too much competition. C) a corporate vertical system attempts to become a contractual vertical marketing system. D) an administered vertical system attempts to become a corporate vertical marketing system. E) one member of the channel attempts to take the position of channel captain away from another.
201) Some manufacturers have tried to use the brand loyalty of their consumers to force retailers to carry only their products and none from their competitors. These manufacturers were trying to force retailers to participate in a practice known as A) resale restriction. B) vertical integration. C) exclusive dealing. D) refusal to deal. E) tying arrangement.
202)
A tying arrangement exists if a supplier requires
A) a distributor purchasing some products to buy others from the supplier. B) channel members to sell only its products or restricts distributors from selling directly competitive products. C) distributors to resell the supplier’s products and specifies geographical areas or territories. D) a channel member to sell only its products. E) a channel member to finance all loans through the supplier’s bank.
Version 1
71
203) Full-line forcing is a special kind of_____Blank. This practice involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier’s line. A) resale restriction B) vertical integration C) exclusive dealing D) refusal to deal E) tying arrangement
204) _____Blank is a special kind of tying arrangement. This practice involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier’s line. A) Resale restriction B) Full-line forcing C) Vertical integration D) Exclusive dealing E) Refusal to deal
205) A fast-food franchisee is required by its franchisor to buy unmarked plastic eating utensils from the franchisor if the franchisee wants to use the cups, napkins, and other paper products with the franchise logo. The franchisee can buy the identical utensils from a local supplier for half the price. This requirement would be an example of a(n) A) dual distribution network. B) refusal to deal. C) exclusive dealing. D) tying arrangement. E) resale restriction.
Version 1
72
206) Questions of legality regarding tying arrangements and exclusive dealing are most likely to occur in which of these? A) corporate vertical marketing systems B) administered vertical marketing systems C) franchises D) horizontal marketing systems E) retail-sponsored cooperatives
207)
A refusal to deal with existing channel members may be illegal under the A) Robinson-Patman Act. B) Sherman Act. C) Federal Trade Commission Act. D) Consumer Goods Pricing Act. E) Clayton Act.
208)
Under the Clayton Act,_____Blank with existing channel members may be illegal. A) a refusal to cooperate B) a refusal to deal C) sharing proprietary information D) horizontal integration E) disintermediation
209) A(n)_____Blank is a supplier’s attempt to stipulate to whom distributors may resell the supplier’s products and in what specific geographical areas or territories they may sell.
Version 1
73
A) oligopolistic practice B) monopolistic practice C) refusal to deal D) tying arrangement E) resale restriction
210) A supplier’s attempt to stipulate to whom distributors may resell the supplier’s products and in what specific geographical areas or territories they may sell is referred to as A) full-line forcing. B) exclusive dealing. C) a refusal to deal. D) a resale restriction. E) a tying arrangement.
211)
Resale restrictions exist if a supplier
A) requires a channel member to sell only its products. B) requires a channel member to finance all loans through the supplier’s bank. C) attempts to stipulate to whom distributors may resell the supplier’s products and in what specific geographical areas or territories they may be sold. D) attempts to sell used or pre-owned products as new. E) attempts to sell used products that have expired or will soon become obsolete without informing the buyer.
212) Resale restrictions have been prosecuted under the Sherman Act. Today, however, the courts apply the_____Blank in such cases and consider whether such restrictions have a “demonstrable economic effect.”
Version 1
74
A) laissez-faire rule B) caveat emptor principle C) rule of reason D) invisible hand standard E) FTC Act provision
213) A marketing channel relies on_____Blank to make products available to consumers and industrial users. A) logistics B) exclusive dealing C) strategic marketing planning D) tying arrangements E) value chain optimization
214) Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as A) vertical integration. B) disintermediation. C) logistics. D) direct selling. E) warehousing.
215)
Logistics refers to
Version 1
75
A) an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. B) mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. C) the sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users. D) activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. E) a specialized intermediary in the distribution chain responsible for the coordination of all production schedules.
216)
Logistics is most closely related to which element of the marketing mix? A) product B) place C) production D) promotion E) price
217) Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to Ford. To accomplish this, Johnson Controls must A) focus on strong logistics for its customers. B) provide Ford with a cost-effective dual distribution system. C) increase the number of steps in the value proposition creation process. D) establish itself in the role of channel captain. E) avoid interfering with influence Ford’s supply chain.
Version 1
76
218) The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements is referred to as A) the inventory management process. B) logistics management. C) production management. D) manufacturer distribution logistics. E) supply-chain management.
219)
Logistics management refers to
A) the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements. B) the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to ultimate consumers. C) the integration and organization of information and logistical activities that actively bring consumers together with sellers through the express use of agents and brokers. D) systems that are designed to reduce a retailer’s lead time for receiving merchandise, which then lowers a retailer’s inventory investment, improves customer service levels, and reduces logistics expense. E) proprietary computer and telecommunication technologies used to exchange digital invoices, payments, and information among suppliers, manufacturers, wholesalers, and retailers.
220) As it relates to the definition of logistics management, flow refers to decisions needed to move
Version 1
77
A) raw materials to the producer. B) semi-finished materials to a merchant wholesaler. C) finished products to the distributor. D) finished products directly from the producer to the retailer. E) a product from the source of raw materials to consumption.
221)
In logistics management, cost-effective decisions imply which of these?
A) While it is important to drive down logistics costs, all channel members must equally benefit financially or the chain will not function effectively. B) Speed of delivery must be measured against increased savings in warehousing. C) While it is important to drive down logistics costs, customer requirements must be a part of the equation. D) The need for multiple carriers always results in lower profit margins and therefore should be avoided. E) The choice of intermediaries should be made on their ability to perform their tasks appropriately even if additional costs must be passed on to the consumer.
222)
A firm needs to drive down logistics costs as long as it can deliver expected A) balance sheet results. B) customer service. C) low levels of expenses. D) product-market synergies. E) target market goals.
223) The various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users are referred to as
Version 1
78
A) strategic distribution. B) distribution management. C) a supply chain. D) value chain optimization. E) logistics.
224)
A supply chain refers to
A) the various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users. B) an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. C) mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. D) activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. E) a specialized intermediary in the distribution chain responsible for the coordination of all production schedules.
225)
Which statement best describes how a supply chain differs from a marketing channel? A) Communication is more important in the marketing channel than in the supply chain. B) The marketing channel places more emphasis on cost-effectiveness than the supply
chain. C) A marketing channel includes suppliers that provide raw material inputs to a manufacturer. D) A supply network moves materials from producer to consumer while a marketing channel moves materials from the supplier to the producer. E) A supply chain includes suppliers; marketing channels do not.
Version 1
79
226) A_____Blank is essentially a sequence of linked suppliers and customers in which every customer is, in turn, a supplier to another customer until a finished product reaches the ultimate consumer or industrial user. A) logistical flow B) demand chain C) supplier-customer alliance D) supply chain E) production pipeline
227) Customers currently link to Cisco’s website to configure, price, and order its networking equipment. Cisco then sends orders back out across the Internet to producers and assemblers including Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Cisco’s standards, sometimes with procedures run remotely by Cisco. Most items are then drop-shipped to buyers, untouched by Cisco’s employees. This is a description of Cisco’s A) virtual logistics. B) supply chain. C) electronic data interchange. D) strategic information alliance. E) product-specific delivery system.
228)
Supply chain management refers to
Version 1
80
A) the integration and organization of information and logistic activities across firms for the purpose of creating and delivering products and services that provide value to ultimate consumers. B) organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of-consumption to satisfy customer requirements. C) the integration and organization of information and logistical activities that actively bring consumers together with sellers through the express use of agents and brokers. D) an inventory management system that is designed to reduce the retailer’s lead time for receiving merchandise, which then lowers a retailer’s inventory investment, improves customer service levels, and reduces logistic expenses. E) a highly organized system that facilitates minute-to-minute communication between all members of a supply chain and ensures the producer is aware of any changes in delivery or demand for a product or service.
229) An invaluable component of supply chain management is its application of_____Blank that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management. A) wholesaler cooperatives B) mathematical and statistical models C) sophisticated information technology D) continuous inventory management E) standardized distribution protocols
230) In the automobile industry, the carmaker’s_____Blank manager is responsible for translating customer requirements into actual orders and arranging for delivery dates.
Version 1
81
A) marketing B) information technology C) intermodal D) supply chain E) financial
231) Supply chain and logistics managers play a large part in the manufacture of automobiles. It is estimated that logistics costs account for_____Blank percent of the retail price you pay for a new car. A) 1 to 2 B) 4 to 5 C) 8 to 10 D) 12 to 15 E) 25 to 30
232) The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1)_____Blank, (2) understand the supply chain, and (3) harmonize the supply chain with the marketing strategy. A) understand the environment B) consider the legal consequences of partnering C) understand the marketing strategy D) understand the customer E) understand the company’s goals
233) To choose a supply chain, a manager should understand the customer, understand the supply chain, and then
Version 1
82
A) understand the environment. B) harmonize the supply chain with the marketing strategy. C) understand the marketing mix. D) understand the logistics. E) understand the company’s goals.
234)
What is the first step in choosing the right supply chain? A) Identify a channel captain. B) Develop a list of qualified channel members. C) Enumerate logistics specifications. D) Compare multiple-channel alternatives. E) Understand the customer.
235)
IBM used its artificial intelligence supercomputer Watson to improve its own A) logistical flow. B) demand chain. C) supplier-customer alliance. D) supply chain. E) supplier pipeline.
236) IBM built a single_____Blank that would handle raw material procurement, manufacturing, logistics, customer support, order entry, and customer fulfillment across all of IBM.
Version 1
83
A) integrated supply chain B) extranet computer system C) customer service department D) intranet supply network system E) global procurement network
237) Often companies must choose between a responsive supply chain and an efficient supply chain. This decision is based on A) the specific needs of customer segments. B) monetary considerations. C) supplier alternatives. D) the business mission. E) a lack of an appropriate channel captain.
238) Because its customers desire rapid delivery and a wide variety of customizable products, Dell made a conscious decision to use a(n)_____Blank supply chain to meet these requirements. A) integrated B) efficient C) harmonized D) responsive E) multitiered
239)
Responsive supply chains
Version 1
84
A) use slower modes of transportation but faster order processing. B) always use the least expensive mode of transportation possible. C) rely on large inventory warehouses. D) achieve economies of scale by having all inventory stored and sorted at a central location. E) rely heavily on information technology.
240)
Responsive supply chains
A) use the shortest marketing channel possible, especially avoiding the use of agents. B) often rely on more expensive express transportation. C) use the least expensive type of packaging possible, making it an undesirable choice for fragile products. D) rely on large inventory warehouses. E) achieve economies of scale by having all inventory stored and sorted at a central location.
241) Walmart’s marketing strategy is to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods. This strategy favors_____Blank designed to deliver products to consumers at the lowest possible cost. A) an integrated supply chain B) a global supply chain C) an efficient supply chain D) a responsive supply chain E) a customer service supply chain
242)
Efficient supply chains
Version 1
85
A) often operate with relatively low inventory levels. B) use common platforms and common components across several products. C) rely on maintaining large geographically dispersed inventory warehouses. D) traditionally use expensive, but faster, modes of transportation. E) emphasize economies of scale by increasing the variety of system configurations offered.
243)
Efficient supply chains A) can only be achieved with agents being utilized in the marketing channel. B) rely on large geographically dispersed inventory warehouses. C) traditionally use expensive, but faster, modes of transportation. D) may utilize cross-docking. E) emphasize the use of tying arrangements.
244) The practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products on trucks that will deliver the products to specific stores is referred to as A) just-in-time (JIT) delivery. B) intermodal distribution. C) immediate response system (ERS). D) piggy-backing. E) cross-docking.
245)
Cross-docking refers to
Version 1
86
A) the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements. B) the practice of storing finished goods in the same trucks from which they will be dispensed and sold to consumers. C) using large cargo containers that will be loaded onto trucks and then barges or ships that sail from port to port and then unloaded back onto trucks for final transport and delivery. D) a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto trucks for a particular store. E) the practice of transporting retail goods from a centralized warehouse to the loading docks of regionally located satellite warehouses.
246)
Cross-docking is most closely related to A) efficient supply chains. B) intermodal transportation. C) responsive supply chains. D) reverse logistics. E) exclusive distribution.
247)
Which statement regarding supply chains is most accurate?
A) The most common form of supply chain is the collaborative-response efficiency strategy. B) In order for a supply chain to work effectively, key decisions should be made by a third-party logistics provider. C) There is no one best supply chain for every company. D) The longer the supply chain, the greater the economies of scale and the better the profit margins. E) Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies.
Version 1
87
248)
Which statement regarding supply chains is most accurate?
A) The best supply chain is the one that is consistent with the needs of the customer segment being served and complements a company’s marketing strategy. B) The most common form of supply chain is the collaborative-response efficiency strategy. C) In order for a supply chain to work effectively, key decisions should be made by a third-party logistics provider. D) The longer the supply chain, the greater the economies of scale and the better the profit margin. E) Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies.
249)
Which statement regarding supply chains is most accurate?
A) The most common form of supply chain is the collaborative-response efficiency strategy. B) In order for a supply chain to work effectively, key decisions should be made by a third-party logistics provider. C) The longer the supply chain, the greater the economies of scale and the better the profit margin. D) Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies. E) Supply chain managers often need to make trade-offs between efficiency and responsiveness.
250) The objective of logistics management in a customer-driven supply chain is to reduce the "bullwhip effect," while minimizing total logistics costs and
Version 1
88
A) satisfying suppliers. B) maximizing profits. C) maximizing supply chain membership. D) delivering the appropriate level of customer service. E) maximizing supply chain inefficiency.
251)
The bullwhip effect is the tendency for supply chain managers to
A) communicate demand levels only to producers rather than to organizations working directly with theirs. B) fluctuate in their ability to dependably provide information that guides inventory and warehouse decisions. C) focus primarily on convenience for customers rather than profitability for the channel. D) exaggerate the need to increase or decrease inventory in response to variation or lack of predictability in customer demand. E) punish suppliers that do not meet obligations in a timely manner than that being solutions-oriented.
252) The_____Blank effect is the tendency for supply chain managers at different levels of the supply chain to exaggerate the need to increase or decrease inventory in response to variation or lack of predictability in customer demand. A) stockout B) bullwhip C) scarcity feedback D) derived demand E) yo-yo
Version 1
89
253) Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling are referred to as A) supplier service cost. B) manufacturing cost. C) total logistics cost. D) social responsibility cost. E) total supply chain cost.
254)
Total logistics cost refers to
A) the design, installation, and maintenance of in-store displays, cabinets, and freestanding promotional materials for retail outlets. B) expenses associated with activities performed by brokers and agents to bring buyers and sellers together. C) expenditures associated with the clerical or bookkeeping side of the procurement process, which include purchase, design, and maintenance of the EDI system. D) expenses associated with product adaptations that are made by the manufacturer in response to the needs of a channel member closest to the consumer. E) expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling.
Version 1
90
255) Figure 15-10 above indicates that supply chain managers must balance total logistics cost factors against customer service factors. The six total logistics cost factors (A, B, C, D, E, and F) include all of these except which?
A) order processing B) materials handling and warehousing C) time D) inventory E) transportation
Version 1
91
256) Figure 15-10 above indicates that supply chain managers must balance total logistics cost factors against customer service factors. The four customer service factors (W, X, Y, and Z) include all of these except which?
A) communication B) dependability C) convenience D) warehousing E) time
257)
Which of these is an element of total logistics cost? A) new-product development B) order processing C) advertising D) personal selling E) market research
258)
Which of these best describes the goal for a firm’s inventory and transportation costs?
Version 1
92
A) Focus more on minimizing required inventory costs. B) Focus more on minimizing required transportation costs. C) Minimize the sum of inventory and transportation costs. D) Maximize the difference between required inventory and transportation costs. E) Set a level of transportation costs and minimize the required inventory costs.
259)
For logistics, the customer service concept suggests that firms should A) automate customer service. B) maximize customer service levels. C) minimize customer service levels. D) minimize total logistics costs and let customer service be handled by the retailer. E) satisfy users in terms of time, dependability, communication, and convenience.
260)
In the context of a supply chain, customer service refers to
A) adhering to the belief that the customer is always right. B) satisfying the customers’ needs no matter what the price. C) accepting full liability if a product fails to meet a customer’s expectations. D) the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience. E) the ability of retailers to satisfy users in terms of product, price, promotion, and place.
261) Within the context of a supply chain,_____Blank is the ability of a logistics system to satisfy users in terms of time, dependability, communication, and convenience.
Version 1
93
A) quick response B) customer service C) distribution management D) efficient consumer response E) lead time
262) Supply chain managers balance total logistics cost factors against customer service factors. Customer service factors include A) reliability, flexibility, consistency, and dependability. B) time, dependability, communication, and convenience. C) consistency, responsiveness, durability, and communication. D) time, assurance, responsiveness, and dependability. E) convenience, flexibility, time, and value.
263)
The output of a supply chain is the A) units of products delivered. B) total generated revenue. C) service delivered to customers. D) total number of customers served. E) total profits realized.
264)
Which statement regarding supply chain customer service is most accurate?
Version 1
94
A) The output of a supply chain is measured in total units sold. B) Customer service must be balanced against total logistics cost factors. C) The output of a supply chain is measured either in total units sold or total number of customers served. D) A firm’s goal should be to provide superior customer service regardless of costs. E) Customer service is the responsibility of marketing channel members and not the supplier network.
265) as
The time from ordering an item until it is received and ready for use or sale is referred to
A) order cycle time. B) order handling time. C) order-to-ship duration. D) purchase cycle. E) logistics cycle.
266)
Order cycle time is
A) the time between when an order is placed and when payment is received. B) the time between the sale of the first production batch to the sale of the next production batch. C) the cycle between one full warehouse shipment to the next full warehouse shipment. D) the time between the ordering of an item and when it is received and ready for use or sale. E) the average time between reorders by a given wholesaler or retailer in the marketing channel.
267)
Another name for order cycle time is
Version 1
95
A) physical distribution sequence. B) total logistics cycle. C) replenishment time. D) logistical support time. E) billing cycle.
268) In a supply chain setting, replenishment time refers to lead time for an item, which means the time between the ordering of an item and when it is A) billed to the customer. B) acknowledged by the customer. C) billed and paid for by the customer. D) promised for delivery. E) received and ready for use or sale.
269)
The typical order cycle includes all of these elementsexcept which? A) order processing B) transportation C) cross-docking D) documentation E) order transmittal
270) At Saks Fifth Avenue, point-of-sale scanner technology records each day’s sales. When stock falls below a minimum level, a replenishment order is automatically sent. Vendors such as Donna Karan (DKNY) receive the order, which is processed and delivered within 48 hours. This system has effectively reduced
Version 1
96
A) dependability. B) product flow. C) replenishment time. D) supply lag. E) logistical lag.
271) Inventory management systems that are designed to make the process of reordering and receiving products as simple as possible are referred to as A) order replenishment systems. B) quick response systems. C) customer logistics factors. D) minimum-inventory systems. E) web-based response systems.
272)
An efficient consumer response system is a(n)
A) order replenishment system that maintains a 10 percent inventory rate at all times in order to guarantee there will never be stockouts. B) online virtual inventory storage program that allows firms to enter in minute-byminute information in order to avoid stockouts due to unforeseen environmental forces. C) computer program that allows even the smallest manufacturer to manage its inventory system. D) inventory management system that is designed to make the process of reordering and receiving products as simple as possible. E) exclusive contractual agreement between delivery services such as FedEx or UPS to deliver expedited orders at a special low rate, regardless of the day and time.
273)
Another name for quick response systems is
Version 1
97
A) order replenishment systems. B) customer logistics factors. C) minimum-inventory systems. D) web-based response systems. E) efficient consumer response systems.
274) Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: consistent lead time, complete delivery, and A) honest and accurate pricing. B) quality products. C) safe delivery. D) a well-informed delivery staff. E) product warranties.
275) Blockchain technology streamlines_____Blank for supply chain managers so that they can focus on other logistic cost and customer factors. A) inventory management B) dependability C) communication D) reverse logistics E) accountability
276) Which of these is used to improve the communication component of logistics between buyer and supplier?
Version 1
98
A) disintermediation B) selective distribution C) reverse logistics D) forward integration E) blockchain technology
277) _____Blank is a decentralized digital system for recording, documenting, and facilitating transactions across all participants in a supply chain, which is helpful in updating the "chain of custody" for materials, components, and finished products. A) Disintermediation B) Selective distribution C) Reverse logistics D) Forward integration E) Blockchain technology
278)
Convenience in a supply chain refers to the concept that
A) there should be a minimum of effort on the part of the buyer in doing business with the supplier. B) all products or services should be available 24 hours a day, 7 days a week, and 365 days a year. C) all tasks required to make an exchange are the sole responsibility of the supplier. D) an exchange requires equal effort by both the buyer and supplier. E) all logistical services are provided by a supplier network.
279) An inventory-management system whereby the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items is referred to as
Version 1
99
A) supplier-managed inventory. B) supply chain inventory. C) logistics-managed inventory. D) just-in-time inventory management. E) vendor-managed inventory.
280)
A vendor-managed inventory system is an
A) inventory supply system that operates with very low inventories and requires fast ontime delivery. B) inventory management system whereby the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. C) inventory management system that is designed to reduce the retailer’s lead time for receiving merchandise, which then lowers its inventory investment, improves customer service levels, and reduces logistic expenses. D) inventory supply system that relies on the judgment of individual warehouse managers based on daily reports from its retailer customers. E) inventory system that guarantees delivery within 48 hours, granting price reductions of 1 percent per hour if a shipment is delayed.
281) Many retailers who sell Campbell Soup products make purchases from Campbell under vendor-managed inventory programs. These retailers A) have Campbell perform all materials handing activities. B) authorize Campbell Soup to eliminate as many wholesaling functions as possible from the supply chain. C) use a system in which Campbell Soup determines the product amount and assortment that will be replenished. D) authorize the use of distribution centers to provide quicker customer response times. E) balance their total logistics cost by eliminating the convenience service factor.
Version 1
100
282) During a recent year, Solectron, a California electronics contractor, made half of its purchases under vendor-managed inventory programs. Solectron A) had its suppliers perform all materials handing activities. B) authorized its suppliers to eliminate as many wholesaling functions as possible from the supply chain. C) used a system in which its suppliers determined the product amount and assortment that should be replenished. D) authorized the use of distribution centers to provide quicker customer response times. E) balanced its total logistics cost by eliminating the convenience service factor.
283) The process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal is referred to as A) salvage marketing. B) materials transformation. C) reverse materials handling. D) reverse logistics. E) cause-related marketing.
284)
Reverse logistics refers to
Version 1
101
A) the collection of used goods donated to nonprofit organizations by ultimate consumers to be restored, cleaned, repaired, and resold back to ultimate consumers. B) deconstructing products that failed to pass quality inspection standards on the production line and reusing workable parts instead of throwing out the entire unit. C) the process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal. D) organizing a cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements. E) the donation of old or broken automobiles to nonprofit organizations that can be recycled or turned into scrap with the profits applied to the organization’s operating expenses.
285) Butler-McDonald, an Indianapolis firm, recycles outdated computers to reclaim reusable materials such as plastics, copper, zinc, silver, and gold. Butler-McDonald is implementing A) salvage marketing. B) materials transformation. C) cyclical materials handling. D) reverse logistics. E) cause-related marketing.
286) Hewlett-Packard is taking a proactive role in reducing the amount of used electronic products and supplies dumped in landfills by using_____Blank to reclaim recyclable and reusable materials. A) reverse materials handling B) reverse logistics C) cause-related marketing D) vendor-managed inventory E) materials transformation
Version 1
102
287) Amazon.com was started with a simple idea: Use the Internet to_____Blank into the fastest, easiest, and most enjoyable shopping experience possible. A) transform book buying B) build web-buying services C) change purchases of consumer appliances D) change Amazon’s web page E) ensure Amazon’s retail store was transformed
288)
Amazon uses supply chain and logistics management to A) make sure that it maintains the authority that comes with being the channel captain. B) avoid having to use quick response replenishment. C) lessen the amount of communication that is necessary between it and its suppliers. D) manage the flow of products from suppliers to fulfillment centers to customers. E) implement its market divestment strategies.
289)
What is a marketing channel? Define each of the four types of marketing channels.
290)
What are the functions performed by intermediaries in marketing channels?
Version 1
103
291) With respect to consumer product and service marketing channels, what are the key differences between a direct and an indirect channel?
292) Define and describe at least one similarity and one difference between dual distribution and a strategic channel alliance.
293) In some countries, the packaging of the well-known Cheerios brand of cereal carries the Nestlé name rather than the familiar General Mills brand name. Explain the channel that is being used and the importance of Cereal Partners Worldwide (CPW).
294)
List and define the three major types of vertical marketing systems.
295) There are three types of contractual vertical marketing systems. List the systems and provide a brief description of each.
Version 1
104
296) There are four types of franchising arrangements. List the arrangements and provide a brief description of each.
297) What are the three questions marketing executives consider when choosing a marketing channel and intermediaries?
298) Channels are typically designed to satisfy one or more of four consumer interests. What are they and why are they important?
299)
What is a channel captain? What is its function and how does it accomplish this?
Version 1
105
300) Briefly explain the differences between supply chain management and a marketing channel.
301) What are the three steps involved in choosing a supply chain that aligns with an organization’s marketing strategy?
302) What specific decision areas are associated with the flow of goods and together make up total logistics cost?
303)
What are some specific cost trade-offs that can be made in a logistics system?
304) List and briefly describe the four customer service factors that must be balanced in a logistics system.
Version 1
106
305)
What is reverse logistics? Give an example.
Version 1
107
Answer Key Test name: Chap 15_16e_Kerin 1) B 2) C 3) A 4) E 5) D 6) C 7) C 8) B 9) E 10) B 11) A 12) D 13) C 14) E 15) D 16) E 17) B 18) D 19) D 20) A 21) E 22) D 23) A 24) B 25) C 26) E Version 1
108
27) D 28) D 29) C 30) E 31) A 32) D 33) B 34) A 35) D 36) E 37) B 38) C 39) C 40) D 41) E 42) C 43) D 44) A 45) C 46) C 47) A 48) B 49) D 50) E 51) D 52) E 53) B 54) A 55) C 56) E Version 1
109
57) B 58) D 59) A 60) C 61) E 62) B 63) D 64) D 65) C 66) B 67) A 68) D 69) E 70) C 71) A 72) D 73) C 74) E 75) B 76) D 77) A 78) E 79) D 80) C 81) D 82) B 83) C 84) E 85) D 86) B Version 1
110
87) D 88) A 89) D 90) E 91) B 92) C 93) D 94) D 95) E 96) D 97) C 98) B 99) E 100) C 101) B 102) E 103) C 104) B 105) A 106) B 107) D 108) C 109) E 110) A 111) B 112) A 113) E 114) B 115) A 116) A Version 1
111
117) C 118) D 119) B 120) E 121) B 122) A 123) D 124) E 125) C 126) B 127) E 128) A 129) D 130) C 131) E 132) D 133) B 134) E 135) D 136) A 137) C 138) A 139) D 140) C 141) B 142) E 143) C 144) E 145) E 146) B Version 1
112
147) D 148) D 149) B 150) C 151) E 152) D 153) B 154) A 155) B 156) D 157) C 158) A 159) B 160) E 161) B 162) D 163) B 164) C 165) A 166) D 167) C 168) D 169) A 170) D 171) C 172) B 173) A 174) C 175) B 176) D Version 1
113
177) D 178) C 179) E 180) A 181) D 182) A 183) C 184) E 185) C 186) B 187) C 188) A 189) B 190) C 191) E 192) D 193) C 194) D 195) A 196) C 197) E 198) A 199) B 200) A 201) C 202) A 203) E 204) B 205) D 206) C Version 1
114
207) E 208) B 209) E 210) D 211) C 212) C 213) A 214) C 215) D 216) B 217) A 218) B 219) A 220) E 221) C 222) B 223) C 224) A 225) E 226) D 227) B 228) A 229) C 230) D 231) E 232) D 233) B 234) E 235) D 236) A Version 1
115
237) A 238) D 239) E 240) B 241) C 242) A 243) D 244) E 245) D 246) A 247) C 248) A 249) E 250) D 251) D 252) B 253) C 254) E 255) C 256) D 257) B 258) C 259) E 260) D 261) B 262) B 263) C 264) B 265) A 266) D Version 1
116
267) C 268) E 269) C 270) C 271) B 272) D 273) E 274) C 275) C 276) E 277) E 278) A 279) E 280) B 281) C 282) C 283) D 284) C 285) D 286) B 287) A 288) D
Version 1
117
CHAPTER 16 1) The development of today’s smart malls and smart stores includes each of theseexcept which? A) biometric scanning B) Internet-of-Things C) artificial intelligence selling D) wearable technology E) virtual reality
2) Since Generation Z is interested in________Blank, mall stores such as American Eagle Outfitters and Levi Strauss have tailors to add patches, paint, embossing, and monogram stitching. A) quality B) environmentalism C) fast fashion D) personalization E) fair trade
3) All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as A) manufacturing. B) retailing. C) wholesaling. D) facilitating. E) logistics.
4)
Retailing includes all activities involved in the
Version 1
1
A) selling, renting, and providing of products and services to ultimate consumers for personal, family, or household use. B) selling of tangible products to ultimate consumers for personal, family, or household use. C) selling of tangible products to ultimate consumers for personal, household, or industrial use. D) selling, renting, leasing, or reselling of products and services to ultimate consumers or small industrial users. E) selling, renting, and providing of products and services without retaining the title to these offerings.
5) Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates A) the nation’s largest source of tax revenues. B) the largest source of charitable contributions. C) limited utilities for consumers. D) customer value. E) a sense of community.
6)
The________Blank provided by retailers create value for consumers. A) utilities B) wholesaling functions C) outsourcing functions D) profits E) synergies
7)
The four utilities offered to consumers through retailing are
Version 1
2
A) convenience, performance, possession, and form. B) time, place, possession, and form. C) product, price, place, and promotion. D) people, productivity, process, and physical environment. E) convenience, consistency, competition, and choice.
8) Wells Fargo is one of the largest banks in the United States. It reaches retail customers through 4,900 retail branches, a worldwide network of 13,000 ATMs, and its online banking service. Which utility does Wells Fargo best provide? A) time B) possession C) place D) form E) performance
9) Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility? A) form B) product C) service D) possession E) convenience
Version 1
3
10) CarMax dealers have adopted a “no-haggle” sales policy that eliminates the need for negotiating. Instead, all customers are offered the same price. Test drives, financing, trade-ins, and leasing are all offered to encourage customers to purchase a car. Which utility does CarMax best provide? A) product B) form C) convenience D) service E) possession
11) Albertsons Grocery Store accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with________Blank utility. A) time B) place C) possession D) form E) public
12) Subway restaurants that offer sandwiches made exactly to each customer’s preference are providing________Blank utility. A) time B) place C) possession D) form E) process
Version 1
4
13) The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with________Blank utility. A) form B) time C) convenience D) possession E) performance
14) At the Christmas Tree Shop, customers can shop for Christmas gifts and decor at any time of the year. What type of utility does this store provide for its customers? A) place and conformance B) possession and form C) form D) performance E) time
15) Dick’s Sporting Goods is a leading sports retailer that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at Dick’s. Which utility does it provide? A) time B) convenience C) possession D) form E) performance
16) Five of the 30 largest businesses in the United States are retailers—Walmart, Amazon, Costco, Home Depot, and
Version 1
5
A) Kohl’s. B) Target. C) Best Buy. D) Office Depot. E) Nordstrom.
17)
Which of these is one of the largest retailers in the United States? A) Hallmark B) Procter & Gamble C) Merck D) Costco E) Johnson and Johnson
18) Walmart’s $559 billion in sales in 2020 surpassed the gross domestic product of all but________Blank countries for that same year. A) 5 B) 12 C) 17 D) 21 E) 36
19)
The greatest dollar amount of retail sales in the United States is generated by
Version 1
6
A) food and beverage stores. B) sporting goods, hobby, book, and music stores. C) electronic stores. D) motor vehicle and parts dealers. E) furniture and home furnishing stores.
20) Of these categories, thesmallest dollar amount of retail sales in the United States is generated by A) motor vehicle and parts dealers. B) food and beverage stores. C) sporting goods, hobby, music, and book stores. D) gasoline stations. E) building material and garden stores.
21) Outside the United States, large retailers include________Blank in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain. A) Aeon B) Toshei C) Seebi D) Goshen E) Toshi
22)
Aeon, Carrefour, Tesco, and Metro Group are
Version 1
7
A) sizable wholesalers that handle products for the world’s largest retailers. B) new Internet start-ups that have the potential to impact the U.S. economy. C) large retailers outside of the United States. D) large distributors of business products. E) historic companies that developed consumer selling systems, though none of them exist today.
23)
The three key methods of classifying retail operations are A) method of operation, revenues generated, and merchandise line. B) form of ownership, method of operation, and merchandise line. C) form of ownership, level of service, and merchandise line. D) level of service, merchandise line, and revenues generated. E) merchandise line, form of ownership, and revenues generated.
24)
Which of these is a commonly used method of retail outlet classification? A) service versus goods B) form of ownership C) proportion of national versus private label brands carried D) revenues generated E) profitability
25) The________Blank distinguishes types of retail outlets, with independent retailers, corporate chains, or contractual systems being the three variations.
Version 1
8
A) wheel of retailing B) service level C) merchandise line D) product assortment E) form of ownership
26)
One method of classification categorizes a retailer as self-, limited-, or fullA) involvement. B) assortment. C) management. D) service. E) ownership.
27) Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-,________Blank, and full-service retailers. A) limitedB) totalC) mixedD) personalE) fixed-
28) A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a
Version 1
9
A) product mix. B) service level. C) product variety. D) store composition. E) merchandise line.
29) The sustainability and environmental responsibility trend has become so important that________Blank offers organizations assistance "to translate complex sustainability issues into innovation and actionable outcomes." A) the Environmental Protection Agency B) the U.S. Chamber of Commerce—Environmental Division C) Green Cross International D) The Sustainability Consortium E) Leadership in Energy and Environmental Design (LEED)
30) When Home Depot switched its in-store light fixture displays to compact fluorescent light and LED bulbs, painted the roofs of its stores white, and installed solar panels, it reduced its energy use by________Blank percent. A) 5 B) 10 C) 15 D) 20 E) 25
31) There are three general forms of retail ownership: contractual system, independent retailer, and
Version 1
10
A) dual ownership. B) industry consortium. C) retailing cooperative. D) multinational cartel. E) corporate chain.
32) One of the most common forms of retail ownership is the________Blank owned by an individual. A) corporate chain B) consumer cooperative C) contractual system D) independent retailer E) administered systems
33) Independent retailers account for most of the________Blank retail establishments in the United States. A) 50,000 B) 90,000 C) 900,000 D) 1.8 million E) 3.8 million
34) Most of the 3.8 million retail establishments in the United States, including hardware stores, convenience stores, clothing stores, and electronics stores, are considered
Version 1
11
A) corporate chains. B) contractual systems. C) independent retailers. D) conglomerates. E) multinationals.
35) Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility? A) corporate chain B) independent retailer C) administered system D) contractual system E) sole incorporation
36) Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by a(n) A) individual. B) conglomerate. C) consortium. D) corporate chain. E) cooperative.
37) A form of ownership that involves multiple outlets under common ownership is referred to as a(n)
Version 1
12
A) corporate chain. B) consumer cooperative. C) contractual system. D) independent retailer. E) administered system.
38)
Bloomingdale’s stores are part of the Macy’s A) corporate chain. B) consumer cooperative. C) contractual system. D) retail conglomerate. E) administered system.
39)
Which statement regarding corporate chains is most accurate?
A) Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation—the Clayton Act as amended by the Sherman Act. B) Corporate chains generally own most if not all of their suppliers—a practice known as forward integration—so they can save distribution costs. C) Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee. D) Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer. E) Corporate chains are multiple outlets under common ownership.
40)
Retail corporate chains benefit consumers in part because
Version 1
13
A) corporate chains have more experience than other forms of retailers. B) consumers can own stock in the same company where they shop since corporate chain stock must be publicly traded. C) chains can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices. D) chains have multiple outlets, each with its own varied merchandise and different management policies. E) consumers have less stress in making decisions at chain stores since merchandise is arranged and displayed by professional designers.
41)
Consumers benefit in dealing with retail corporate chains because A) corporate chains are required to have generous return policies. B) they can have a greater positive impact on their local economy by shopping these
stores. C) they can establish a credit history more easily than with other forms of retailers. D) chains have multiple outlets with similar merchandise and consistent management policies. E) they have less stress in making decisions since merchandise is arranged and displayed by professional designers.
42)
The acronym RFID stands for A) retail franchise identification designation. B) required financial identification. C) radar frequency identification. D) radio frequency identification. E) retail federation of independent department stores.
Version 1
14
43) Retailers are implementing pioneering new technologies such as cloud-based Internet of Things platforms combined with________Blank to improve the quality of information available about the shopping experience in their stores. A) radio frequency identification (RFID) tags B) encapsulation techniques C) bar code scanners D) nanotechnology E) cookies
44) as
Independently owned stores that band together to gain benefits of a chain are referred to
A) corporate chains. B) cooperative marketing systems. C) contractual systems. D) regional shopping centers. E) self-service systems.
45)
The three basic types of contractual systems are
A) retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises. B) dual ownership agreements, industry consortiums, and nonbinding cooperatives. C) wholesaler-sponsored voluntary chains, nonbinding cooperatives, and franchises. D) dual ownership agreements, industry consortiums, and multinational cartels. E) nonbinding, binding, and in perpetuity.
46) One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to
Version 1
15
A) purchase a franchise membership. B) become a subsidiary of a larger supermarket chain such as Kroger. C) join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods. D) create a grocery networking system to exchange coupon vouchers. E) participate in a retailer-sponsored cooperative with other independent grocers.
47) Which method of retail outlet classification is most appropriate for describing franchise operations? A) form of ownership B) level of service C) merchandise line D) method of operation E) revenues generated
48)
Franchising is a type of A) administered system. B) contractual system. C) vertically integrated chain. D) retail-sponsored cooperative. E) corporate system.
49) In a(n)________Blank, an individual or firm contracts with a parent company to set up a business or retail outlet.
Version 1
16
A) administered system B) vertically integrated chain C) retail-sponsored cooperative D) franchise system E) corporate system
50) In a(n)________Blank, assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company. A) administered system B) conglomerate system C) franchise system D) vertical integrated system E) retail-sponsored cooperative
51) As a franchisor, Anytime Fitness would assist a franchisee in selecting the store location, setting up the store, advertising, and A) developing the marketing program. B) training personnel. C) offering performance bonuses. D) ordering and restocking inventory. E) paying insurance and legal fees.
52)
Franchising is attractive for the franchisee because
Version 1
17
A) it gives the franchisee complete control over the delivery and presentation of merchandise. B) the license fees paid to the franchisor are the only fees the franchisee pays. C) it relieves the franchisee from any company or product liabilities. D) it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provided. E) the franchisee is completely his or her own boss.
53) By selling franchises, an organization________Blank the cost of expansion and________Blank its control compared to owning its own retail outlets. A) increases; increases B) increases; reduces C) reduces; increases D) increases; retains almost all E) reduces; reduces
54)
The three commonly used terms to describe levels of service in retailing are A) self-service, limited-service, and full-service. B) retailer-service, sales-service, and customer-service. C) self-service, automated-service, and online-service. D) limited-service, full-service, and automated-service. E) wholesaler-service, retailer-service, and customer-service.
55) The level of service that requires the customers themselves perform many functions during the purchase process is
Version 1
18
A) full-service. B) limited-service. C) self-service. D) customized-service. E) automated-service.
56) Gas stations, supermarkets, and airlines that have automated check-out or check-in terminals are providing what level of retail service? A) full-service B) limited-service C) customized-service D) self-service E) automated-service
57) Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated. What level of service does Costco offer? A) limited-service B) full-service C) customized-service D) self-service E) restricted-service
58) Redbox has 40,000 kiosks throughout the United States for movie and video game rental and it operates without a single clerk. What level of service does this retailer offer?
Version 1
19
A) full-service B) self-service C) limited-service D) customized-service E) functional-service
59)
Which retailer provides self-service to its customers? A) Zipcar B) Footlocker C) Target D) 7-11 E) Apple
60) General merchandise stores such as Walmart and Target are usually considered________Blank retailers. A) exclusive-service B) minimal-service C) self-service D) full-service E) limited-service
61) Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as________Blank retail outlets.
Version 1
20
A) limited-service B) exclusive-service C) minimal-service D) self-service E) full-service
62) Kohl’s is a moderately priced retailer that sells name-brand fashions and home goods. A few salespeople are available in the jewelry department, but customers are responsible for most of their shopping activities. Kohl’s provides its consumers with A) full service. B) limited service. C) self-service. D) restricted service. E) functional service.
63) Target offers its Target REDcard, where cardholders receive 5 percent back for each purchase. Target also allows customers to return merchandise within 30 days but does not offer alteration or fitting services. Target offers what level of service to its customers? A) full service B) self-service C) automated service D) limited service E) customized service
64) Most specialty stores and department stores, which provide many services to their customers, are considered to be
Version 1
21
A) exclusive-service retailers. B) limited-service retailers. C) full-service retailers. D) unlimited-service retailers. E) exhaustive-service retailers.
65) At which level of service would the customer be expected to perform the least number of functions? A) automated service B) minimal service C) self-service D) limited service E) full service
66) Saks Fifth Avenue is an upscale retailer that offers designer brand women’s apparel, fragrances, jewelry, and leather accessories. The retailer relies on superior service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as a(n) A) exclusive-service retailer. B) limited-service retailer. C) full-service retailer. D) premium-service retailer. E) augmented-service retailer.
67) Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering?
Version 1
22
A) full service B) limited service C) self-service D) restricted service E) functional service
68) Williams-Sonoma is a specialty store that caters to customers who like to cook at home. It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation. The sales staff helps customers make their selections. Williams-Sonoma is a(n)________Blank retailer. A) exclusive-service B) full-service C) upscale-service D) self-service E) limited-service
69) Nordstrom stores typically have 50 percent more salespeople on the floor than other retailers with stores of similar sizes. Its salespeople are renowned for their professional and personalized attention to customers. Nordstrom offers a wide variety of services, including onsite alterations and tailoring, a seven-days-a-week customer service line, live chat line with beauty, design, and wedding specialists and would be considered a(n) A) exclusive-service retailer. B) limited-service retailer. C) full-service retailer. D) above-market service retailer. E) preferred-service retailer.
Version 1
23
70) A Woman’s Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. For expectant mothers, it offers advice and personal shopping services, help with hair or make-up problems, and free delivery. A Woman’s Place is an example of a(n)________Blank retailer. A) franchise B) self-service C) limited-service D) full-service E) upscale
71) Retail outlets vary by their merchandise lines, the key distinction being the________Blank of the items offered to customers. A) scope and span B) breadth and depth C) availability and inventory D) scope and inventory E) range and span
72)
Depth of product line refers to A) the percentage of goods stored as inventory. B) the variety of different product items a store carries. C) variations in price and color on specific items in a store. D) the assortment of each item carried by a store. E) the number of different product classes owned by a corporate chain.
73)
A large assortment of each item within a product line in a store is referred to as
Version 1
24
A) product span. B) breadth of product line. C) length of product line. D) width of product line. E) depth of product line.
74) Your local Hallmark retailer carries thousands of greeting cards. You can find cards for a twin birthday, graduation, from my cat to yours, and many other unique occasions. This is an example of the________Blank that the Hallmark retailer carries. A) depth of product line B) breadth of product line C) height of product line D) length of product line E) width of product line
75) Nike offers shoes for men, women, and children in many sizes and widths. It offers running, cross training, walking, golf, and other types of shoes. This is an example of the________Blank that Nike offers to its customers through its own stores or other retailers such as Foot Locker. A) product items B) depth of product line C) breadth of product line D) versatility of product family E) variety of product mix
76)
The variety of different items a store carries is referred to as the
Version 1
25
A) retailing mix. B) depth of product line. C) breadth of product line. D) width of product line. E) length of product line.
77) Your local Target retailer carries a variety of different items. You can find everything ranging from shoes and electronics to baby items and groceries. This is an example of the________Blank carried by Target. A) breadth of product line B) depth of product line C) variety of brand extension D) breadth of product class E) product mix
78) to as
Stores that carry a considerable assortment (depth) of a related line of items are referred
A) limited-line stores. B) general merchandise stores. C) scrambled merchandise stores. D) hypermarkets. E) intertype outlets.
79) Dick’s Sporting Goods stores carry considerable depth in sports equipment ranging from weight-lifting accessories to running shoes. Dick’s Sporting Goods is most likely classified as which retail variation based on this large assortment in related sporting goods categories?
Version 1
26
A) single-line B) full-service C) full-line D) limited-service E) limited-line
80) Sally Beauty Supply sells products for hair, skin, and nail care as well as cosmetics. It is most likely classified as which retail variation based on the considerable assortment of beauty and personal care products it carries? A) single-line B) full-service C) full-line D) limited-service E) limited-line
81)
Stores that carry tremendous depth in one primary line of merchandise are referred to as A) hypermarkets. B) intertype outlets. C) scrambled merchandise stores. D) limited-line stores. E) single-line stores.
82) Victoria’s Secret, a nationwide chain, carries great depth in women’s lingerie and almost no other products. Victoria’s Secret is an example of a(n)
Version 1
27
A) limited-line store. B) single-line store. C) intertype outlet. D) general merchandise store. E) scrambled merchandise store.
83)
Limited- and single-line stores are often referred to as A) specialty outlets. B) general merchandise stores. C) scrambled merchandise stores. D) intertype outlets. E) hypermarkets.
84) Mike’s Camera is a retailer that carries a full line of professional and amateur cameras, develops and prints all types of film and digital photos, and even sells darkroom equipment. Mike’s Camera is an example of a(n) A) hypermarket. B) general merchandise store. C) scrambled merchandise store. D) intertype outlet. E) specialty outlet.
85) A retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a
Version 1
28
A) general merchandise store. B) value outlet. C) hypermarket. D) category killer. E) department store.
86) Staples is a specialty discount retailer that focuses on one type of product, office supplies, and is the clear leader in that market. Staples is an example of a A) hypermarket. B) superstore. C) category killer. D) department store. E) focused merchandise store.
87)
Stores that carry a broad product line, with limited depth, are referred to as A) limited-line stores. B) general merchandise stores. C) scrambled merchandise stores. D) hypermarkets. E) intertype outlets.
88) Stores like Dillard’s, Macy’s, and Neiman Marcus carry a wide range of different types of products but not an extensive number of items within each type. These retailers are known as
Version 1
29
A) limited-line stores. B) scrambled merchandise stores. C) hypermarkets. D) intertype outlets. E) general merchandise stores.
89)
Offering several unrelated product lines in a single store is referred to as A) intertype competition. B) multiple distribution. C) scrambled merchandising. D) a department store. E) a specialty outlet.
90)
Scrambled merchandising refers to
A) displaying merchandise throughout a store rather than keeping all similar items together in rows on a shelf or point-of-purchase displays. B) offering several unrelated product lines in a single store. C) changing the position in which items are displayed in a store to create customer interest in a variety of product lines. D) offering several related product lines in multiple stores. E) offering several related product lines in a single store.
91) A drugstore that sells carries food, cosmetics, magazines, paper products, toys, small hardware items, and pharmaceuticals is an example of a retailer using
Version 1
30
A) multiple distribution channels. B) full service. C) scrambled merchandising. D) intertype competition. E) dual channel marketing.
92)
A hypermarket is a
A) category killer that specializes in electronics. B) form of intertype competition consisting of general merchandise stores. C) shopping mall anchored by four or more department stores such as Sears or Nordstrom. D) form of limited-service outlets focusing on general merchandise like that offered in department stores. E) form of scrambled merchandising, consisting of large stores offering everything in a single one-stop outlet.
93) Located predominately in Europe, stores called________Blank are based on the concept of one-stop shopping for consumers. Such retail stores, which use scrambled merchandising, sometimes span over 200,000 square feet of floor space and offer quality, variety, and low price for food and groceries and general merchandise. A) megamarkets B) hypermarkets C) one-stop markets D) euromarkets E) supercenters
94)
Which retailer is one of the largest hypermarkets in the world?
Version 1
31
A) Alibaba B) Kroger C) Carrefour D) Costco E) Home Depot
95)
Which type of store gives shoppers the greatest variety of merchandise? A) a hypermarket B) a specialty clothing store C) a limited-line gift store D) a clothing outlet E) a discount store
96)
Meijer operates a chain of hypermarkets headquartered in Michigan, which means it A) engages in no intertype competition. B) is a disintermediator. C) uses scrambled merchandising. D) can also be referred to as a category killer. E) uses dual distribution.
97)
A supercenter is a(n) A) auto service center that sells and leases cars as well as repairs them. B) type of specialty outlet with premium merchandise. C) store that combines a typical merchandise store with a full-size grocery store. D) mall with more than 100 stores and several important anchor stores. E) store one step larger than a hypermarket.
Version 1
32
98)
Intertype competition refers to competition between
A) very similar types of retail outlets that results from a single-product/single-line merchandising policy. B) retailers when the types of items they sell are virtually indistinguishable from one another. C) national and generic brands that are sold side by side in a retail outlet. D) retailers located in separate quadrants of the retail positioning matrix. E) very dissimilar types of retail outlets that practice scrambled merchandising.
99) ________Blank describes very dissimilar types of retail outlets that compete with each other as a result of scrambled merchandising. A) The wheel of retailing B) The retail positioning framework C) Intertype competition D) The retail competitive cycle E) The multichannel retail competitive map
100) Fresh-cut flowers that were once only available from florists can now be purchased at neighborhood supermarkets. This is an example of A) dysfunctional competition. B) mixed-line merchandising. C) multi-product marketing. D) intertype competition. E) dual distribution.
Version 1
33
101) Many supermarkets have in-store restaurants where a customer can buy prepared meals to take home or eat there. Supermarkets and restaurants that provide these same kinds of meals are engaged in________Blank competition. A) intertype B) institutional C) intermodal D) functional E) selective
102)
All of these are forms of nonstore retailingexcept which? A) direct selling B) television home shopping C) factory outlets D) online retailing E) telemarketing
103) Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending, is referred to as A) limited-line retailing. B) nonstore retailing. C) scrambled merchandising. D) a hypermarket. E) intertype competition.
104)
Which of these is an example of nonstore retailing?
Version 1
34
A) hypermarkets B) supercenters C) shopping centers D) direct mail E) general merchandise stores
105)
Vending machines are an example of A) hypermarkets. B) direct mail. C) scrambled merchandising. D) intertype competition. E) nonstore retailing.
106)
Prices in vending machines tend to be higher because
A) machines are placed in low-demand traffic areas. B) maintenance, operating, and leasing costs are high. C) only small unit volume items are sold. D) customary pricing requires certain coin and currency amounts regardless of the normal retailer markup. E) few people buy from vending machines.
107)
The largest percentage of products sold from vending machines are
Version 1
35
A) snacks. B) personal care items. C) movies and videos. D) cold beverages. E) food.
108) Which form of retailing is Best Buy now using in airports to distribute its mobile phone and computer accessories, digital cameras, flash drives, and other consumer electronics? A) vending machines B) salespeople with mobile carts C) mall-scale traditional retail stores D) salespeople wearing Best Buy uniforms with products in backpacks E) freestanding kiosks staffed with knowledgeable sales personnel
109) Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines wirelessly. This is an example of how vending machines can provide which type of utility? A) time B) place C) possession D) product E) form
110)
Direct-mail and catalog retailing are examples of
Version 1
36
A) nonstore retailing. B) intertype retailing. C) online retailing. D) print-media retailing. E) dual retailing.
111)
A Crate & Barrel mail order catalog is an example of________Blank retailing. A) at-market B) intertype C) scrambled D) nonstore E) hypermarket
112)
All of these are reasons direct-mail and catalog retailing are attractiveexcept which?
A) They can create customer value by providing a fast and convenient means of making a purchase. B) They can serve as an element of a multichannel strategy designed to encourage consumers to visit a website, a social media page, or even a store. C) Their paper costs and postal rates have declined, making them less expensive to send. D) They can eliminate the cost of a store and clerks. E) They can improve marketing efficiency through segmentation and targeting.
113) Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for “green” mailings have resulted in
Version 1
37
A) a switch to online catalogs and direct-to-customer e-mail advertisements. B) the use of thinner, lightweight paper products. C) a focus on proven customers or specialty catalogs for market niches. D) the banning of “junk” mail by a growing number of environmentally concerned communities. E) a resurgence in nonautomated telemarketing.
114) The use of specialty catalogs from firms such as Amazon, Crate and Barrel, and Lands’ End have been affected by all of these factorsexcept which? A) The U.S. Postal Service reducing its delivery schedule. B) Higher paper costs, an increase in postage rates, and the possibility of the U.S. Postal Service reducing delivery to five days a week. C) The growing interest in do-not-mail legislation. D) The concern for “green” mailings and catalogs. E) The growing influence of television home shopping.
115) The marketing managers at Omaha Steaks used airlines’ databases to mail a special offer to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who responded to the offer, the company’s salespeople followed up by calling customers to ask for new orders. This is an example of which types of nonstore retailing? A) automatic vending and telemarketing B) direct mail and telemarketing C) telemarketing and online retailing D) online retailing and direct mail E) direct mail and direct selling
Version 1
38
116) Amir is an avid fly fisherman and he needs large rubber rafts, hip waders, special fishing rods, reels, line, and an assortment of fishing tackle and lures. There are no sporting goods stores near him so Amir orders his fishing supplies from the L.L. Bean catalog. His supplies are generally delivered to his home within 72 hours. Amir is using a________Blank to satisfy his fishing supply needs. A) home delivery retailer B) quick-response retailer C) direct-mail marketer D) flexible response marketer E) regional marketer
117)
Currently, the three largest television home shopping channels in the United States are A) QVC, HSN, and ShopHQ. B) Shop at Home, QVC, and HSN. C) Direct Shopper, Shop at Home, and ShopNBC. D) ValueVision, Shop at Home, and QVC. E) Shop America, Direct Shopper, and HSN.
118) QVC is a television home shopping network. It generates sales of over $13 billion from its 13 million customers by A) directing customers to purchase through its Mall of America retail store. B) broadcasting live 12 hours a day, 365 days a year. C) offering more than 800 products each week on a 24-hour-a-day broadcast. D) offering overstocked items from retailers at a fraction of the original cost. E) running live podcasts and live streaming over the Internet.
119)
In the past, television home shopping programs have attracted mostly
Version 1
39
A) 18- to 34-year-old men. B) 25- to 34-year-old women. C) 35- to 54-year-old men. D) 35- to 64-year-old women. E) 12- to 17-year-old boys.
120) Some experts suggest that television shopping programs are becoming a modern version of________Blank by combining elements of reality TV programs, talk shows, and infomercials. A) augmented reality B) door-to-door retailing C) telemarketing D) direct-response wholesaling E) indirect selling
121)
Which of these is a type of utility created by online shopping? A) time B) price C) product D) process E) promotion
122)
All of these are advantages of online shoppingexcept which?
Version 1
40
A) personal contact B) 24-hour access C) the ability to comparison shop D) in-home privacy E) variety
123) Online retail purchases by consumers can be the result of several very different approaches, including patronizing online malls, visiting a website that offers “flash sales,” and A) becoming a secret shopper. B) participating in a buying cooperative. C) using direct selling. D) participating in an online auction. E) shopping via vending machine.
124) Some retailers now allow consumers to respond to their text messages announcing a sale for a specified time period. Consumers must then visit the website to purchase the sale items. Which of these retailing websites offers these limited time “flash sales”? A) TextBuyIt B) Best Buy C) PeaPod D) eBay E) Gilt
125) One of the biggest problems online retailers face is that nearly________Blank percent of online shoppers make it to “check-out” and then leave the website to compare shipping costs and prices on other sites.
Version 1
41
A) 16 B) 26 C) 36 D) 56 E) 60
126) One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to “check-out” and then leave the website A) because of slow download times. B) to compare shipping costs and prices on other sites. C) because of security fears when entering credit card information. D) due to the inability to experience the product in person. E) over dissatisfaction with product availability.
127) Experts suggest that online retailers should think of their websites as________Blank if they are to attract and retain customers. A) cash cows B) dynamic billboards C) virtual reality stores D) traditional retail stores E) online entertainment
128) Online retailing includes social shopping options like intermediaries (Groupon), marketplaces (Storenvy), and________Blank (Clarkdeals).
Version 1
42
A) swap meets B) aggregators C) flash sales D) showroomers E) arbitrators
129)
Using the telephone to interact with and sell directly to consumers is referred to as A) digital marketing. B) telemarketing. C) solicitation marketing. D) telecommerce. E) direct selling.
130) In the telemarketing industry, issues such as________Blank, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses. A) competitive antics B) coercion tactics C) freedom of speech D) language issues E) consumer privacy
131)
Which statement regarding telemarketing is most accurate?
Version 1
43
A) Shopping bots are computers that place automated or “robo” (i.e., robotic) telemarketing calls. B) Direct mail is typically viewed as a more efficient means of targeting consumers than telemarketing. C) Telemarketing has become more effective as a result of the National Please-Do-Call registry legislation. D) Consumer privacy, industry standards, and ethical guidelines have become important issues. E) Many firms are considering shifting their direct-mail and door-to-door budgets to telemarketing techniques.
132) As a result of legislation, consumers who do not want to receive telephone calls related to company sales efforts can A) purchase telephones that block unwanted calls. B) place their telephone numbers on the National Do Not Call Registry. C) request phone numbers that begin with the area code 555 that automatically block telemarketing solicitors. D) request phone numbers that begin with the area code 888 that automatically block telemarketing solicitors. E) use an unlisted telephone number.
133) The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as A) direct selling. B) person-to-person sales. C) face-to-face selling. D) direct-response selling. E) customized selling.
Version 1
44
134) Sales of goods and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as direct selling, or A) person-to-person sales. B) interactive selling. C) door-to-door retailing. D) individual promotion. E) customized selling.
135) Companies such as Avon, Fuller Brush, and Mary Kay Cosmetics are examples of firms that use A) interface marketing. B) flex marketing. C) direct selling. D) interactive selling. E) responsive selling.
136)
Direct selling is likely to continue to have strong growth in markets A) in which people prefer not to have a social shopping experience. B) where convenience is not especially important. C) in which consumers are knowledgeable shoppers. D) where there is a lack of effective distribution channels. E) that have an excellent infrastructure.
137) In response to the changes in the United States, many direct sellers are implementing a(n)________Blank strategy by expanding into other countries with their current product lines.
Version 1
45
A) market development B) market penetration C) accelerated development D) product development E) diversification
138) Growth in the direct-selling industry is the result of two developments: direct-selling retailers have expanded into markets outside the United States, and A) increased gas prices and traffic congestion are causing people to want the store to deliver the products to them. B) the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient. C) the cost of purchasing or leasing real estate to build an actual “brick” retail store is becoming prohibitive. D) graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses. E) some consumers prefer one-on-one customer service and a social shopping experience rather than shopping online or in big discount stores.
139)
Which statement regarding direct selling is most accurate?
A) Unlike other forms of nonstore retailing, direct selling takes place in the business market. B) Direct selling is found exclusively in the United States. C) Direct selling succeeds in part because it provides customers with a social shopping experience. D) Direct sales have been declining rapidly in the United States since the 1980s. E) By definition, direct selling can only take place in a home.
Version 1
46
140) Lija was unable to go to the store on her own to buy gifts for the holidays. She contacted a Pampered Chef representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer’s gifts sorted and delivered. This is an example of A) interface marketing. B) flex marketing. C) direct selling. D) interactive selling. E) responsive selling.
141) The analytical tool that positions retail outlets in terms of the breadth of their product line and value added, such as location, product reliability, or prestige, is the A) growth share matrix. B) MAC framework. C) market-product grid. D) retail positioning matrix. E) wheel of retailing.
142)
The retail positioning matrix is an analytical tool that identifies A) retail outlets in terms of the breadth of product line and value added. B) the best location for building or leasing a retail store. C) the specific customer base served by all stores within a given radius. D) the most likely target market for a retail outlet based upon its size. E) the elements of the retailing mix.
143)
The vertical dimension of the retail positioning matrix is
Version 1
47
A) depth of product line. B) relative market share. C) retail sales. D) breadth of product line. E) stage in the retail life cycle.
144)
The horizontal dimension of the retail positioning matrix is A) market growth. B) value added. C) relative market share. D) retail sales. E) stage in the retail life cycle.
145) The value added dimension of the retail positioning matrix includes elements such as product reliability, prestige, and A) brand awareness. B) market share. C) location. D) price. E) number of employees.
Version 1
48
146) Which retailer would best fit in quadrant A shown in the retail positioning matrix, Figure 16-8?
A) DSW shoe store B) Macy’s department store C) 7-Eleven convenience store D) Walmart E) Lamborghini automobile dealer
Version 1
49
147) Which retailer would best fit in quadrant B shown in the retail positioning matrix, Figure 16-8?
A) H&M clothing store B) Bloomingdale’s department store C) 7-Eleven convenience store D) DSW shoe store E) Lamborghini automobile dealer
Version 1
50
148) Which retailer would best fit in quadrant C shown in the retail positioning matrix, Figure 16-8?
A) Nordstrom department store B) Dillard’s department store C) 7-Eleven convenience store D) DSW shoe store E) Lamborghini automobile dealer
Version 1
51
149) Which retailer would best fit in quadrant D shown in the retail positioning matrix, Figure 16-8?
A) Walmart B) Dillard’s department store C) 7-Eleven convenience store D) DSW shoe store E) Tiffany & Co.
150) The activities related to managing a store and its merchandise, which includes retail pricing, store location, retail communication, and merchandise are referred to as the
Version 1
52
A) wheel of retailing. B) distribution mix. C) retail life cycle. D) retailing mix. E) retail store positioning.
151)
The retailing mix refers to the activities related to managing a store, and includes
A) retail pricing, store location, retail communication, and merchandise. B) product, price, promotion, and place. C) the utilities of time, form, possession, and price. D) the colors, sizes, shapes, and point-of-purchase display locations of the store’s products. E) store location, merchandise, hiring and training of employees, and promotion of both the store and products.
152)
When developing retailing strategies, marketers develop a retailing mix, which includes A) products, services, promotions, and retail communication. B) promotions, publicity, and press releases. C) retail pricing, store location, retail communication, and merchandise. D) physical environment, people, process, and productivity. E) direct mail, online stores, traditional stores, and outlet stores.
153)
The retailing mix includes all of theseexcept which?
Version 1
53
A) merchandise B) target market C) retail pricing D) store location E) retail communication
154) When setting prices for merchandise, retailers must decide on the markup, the markdown, and the________Blank for markdowns. A) relevance B) necessity C) percentage D) timing E) consequence
155)
A markup refers to
A) the difference between the final selling price and how the customer values the product. B) selling brand-name merchandise at lower than regular prices. C) the amount added to the cost the retailer paid for a product to reach the final selling price. D) the difference between the retail cost and initial selling price. E) the reduction in retail price, usually expressed as a percentage equal to the amount reduced, divided by the original price, and then multiplied by 100.
156) The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as a(n)
Version 1
54
A) markup. B) markdown. C) original markup. D) maintained markup. E) cost-plus markup.
157) Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is her markup in dollar terms? A) $136 B) $64 C) $72 D) $360 E) $10
158)
The difference between the retailer’s cost and the initial selling price is referred to as the A) net margin. B) maintained markup. C) markdown. D) differential markup. E) original markup.
159) A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the original markup?
Version 1
55
A) $26 B) $86 C) $78 D) $34 E) $112
160)
A maintained markup is A) the difference between the final selling price and the retailer’s cost. B) the initial selling price minus the amount paid by the retailer. C) the amount the manufacturer adds to achieve the desired suggested retail price. D) the net margin. E) the highest price listed for the product.
161)
The difference between the final selling price and the retailer’s cost is referred to as the A) original markup. B) maintained markup. C) markdown. D) differential markup. E) discounted price.
162)
Another term for maintained markup is A) original markup. B) maintained markup. C) markdown. D) gross margin. E) net margin.
Version 1
56
163) A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup? A) $112 B) $52 C) $26 D) $34 E) $86
164) Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she planned to sell them for $100 each. Recently, however, sales have been a bit slow. Jane decides to reduce the price for the frames to $80. What is her maintained markup? A) $100 B) $20 C) $44 D) $64 E) $0
165)
Discounting a product when the product does not sell at the original price is referred to as A) an inverse markup. B) a markdown. C) price sensitivity. D) concession pricing. E) a rebate.
166)
A markdown refers to
Version 1
57
A) the difference between the final selling price and the retailer’s cost. B) the amount the manufacturer adds to achieve the desired suggested retail price. C) discounting a product when it does not sell at the original price and an adjustment is necessary. D) the lowest price to which a retailer can reduce a sales ticket and still make a profit. E) the net margin.
167) Many retailers take a markdown as soon as sales fall to free valuable selling space and cash. This illustrates one tactic for handling the________Blank of markdowns. A) timing B) demand C) availability D) bargain hunting E) customer value
168) When retailers set prices on new models or styles of products, the price of existing models often is________Blank to quickly sell them. A) benchmarked B) off-priced C) value-added D) marked down E) maintained
169)
To increase the demand for complementary products, the price of a product often is
Version 1
58
A) marked up. B) marked down. C) off-priced. D) value-subtracted. E) maintained.
170)
Markdowns can be used to A) increase competition with other retailers in the immediate vicinity. B) placate dissatisfied customers. C) enhance customer perceptions of product quality. D) increase demand for complementary products. E) create a sense of urgency among repeat buyers.
171) Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off most likely are doing so to A) placate dissatisfied customers. B) enhance customer perceptions of product quality. C) free up valuable selling space and cash. D) create an image as a cutting-edge retailer. E) react to the entry of a new competitor.
172) The largest inventory of wedding dresses in the Southeast can be found at Low’s Bridal and Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride shopping at Low’s can find gowns once priced at $6,000 for $2,999 and $800 gowns for $399. The reduced prices of these gowns are reflected in which retail pricing strategy?
Version 1
59
A) markdowns B) original markups C) future markups D) inventory shrinkages E) net markups
173) When Paulette first saw the dress in the store window, she knew two things. She had to own the dress, and she could not afford it at its current price. Disappointed, she left. Two weeks later, she passed by the store again and saw that the price of the dress had been reduced to one that she could afford. Specifically, the store had reduced the price by 30 percent to “move” it. Paulette was able to purchase the dress because of a(n) A) negative markup. B) markup elimination. C) markdown. D) liquidity reduction. E) increase in net margin.
174) Research indicates that the timing of________Blank might affect future sales because frequent promotions increase consumers’ ability to remember regular prices. A) seasonal markdowns B) original markups C) future markups D) maintained markups E) markdowns
175) As part of their regular retail pricing strategy, some retailers will emphasize consistently low prices and eliminate most markdowns, a practice referred to as
Version 1
60
A) everyday low pricing. B) low-margin pricing. C) everyday fair pricing. D) value-based pricing. E) maintained pricing.
176) Walmart and The Home Depot emphasize consistently low prices and eliminate most markdowns with a retail pricing strategy called A) low-margin pricing. B) value-based pricing. C) everyday low pricing. D) everyday fair pricing. E) markdown pricing.
177)
Off-price retailing refers to the A) differences between the final selling price and the retailer’s cost. B) sale of brand-name merchandise at lower than regular prices. C) sale of merchandise at maintained markups. D) amount added by the manufacturer to achieve the desired suggested retail price. E) reduction in retail price usually expressed as the gross margin.
178)
The selling of brand-name merchandise at lower than regular prices is referred to as
Version 1
61
A) discount pricing. B) everyday low pricing. C) markdown pricing. D) off-price retailing. E) loss-price leadership.
179) The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers________Blank and discount stores buy from wholesalers________Blank. A) that are trying to offload returned or slightly irregular inventory; selling new but inexpensive merchandise B) at below wholesale prices; and charge a high initial price with the intent of taking markdowns later C) at below wholesale prices; at full price but take less of a markup on merchandise D) at various price points; at the lowest price points possible E) that are part of a retailing cooperative; that are part of a wholesaling cooperative
180) Merchants such as Burlington and T.J. Maxx sell brand-name merchandise up to 70 percent off the prices of a traditional department store using a(n) A) off-price retailing strategy. B) markdown pricing strategy. C) everyday fair pricing strategy. D) everyday low pricing strategy. E) maintained markdown pricing strategy.
181) Ross Stores, where prices are low but selection is unpredictable, uses a(n)________Blank pricing practice.
Version 1
62
A) odd-even B) maintained markup C) gross margin D) manufactured suggested retail E) off-price retail
182)
Three common forms of off-price retailers are A) warehouse clubs, factory outlet stores, and hypermarkets. B) warehouse clubs, factory outlets, and single-price or extreme-value retailer. C) factory outlets, single-price retailers, online auction services. D) factory outlets, supercenters, hypermarkets. E) extreme value retailers, buying clubs, online auction services.
183) An off-price retailer that requires customers to purchase an annual membership card for the privilege of shopping at the store is referred to as a(n) A) outlet store. B) single-price retailer. C) hypermarket. D) warehouse club. E) supercenter.
184) A(n)________Blank carries 3,700 to 8,000 items and usually stocks just one brand of appliance or food product.
Version 1
63
A) warehouse club B) single-price retailer C) extreme value retailer D) hypermarket E) supercenter
185)
Sam’s Club and Costco are examples of A) supercenters. B) hypermarkets. C) warehouse clubs. D) single-price retailers. E) outlet stores.
186)
All of these are characteristics of warehouse clubsexcept which?
A) Customers are attracted by the ultra-low prices and surprise deals on selected merchandise. B) The stores are used to clear excess merchandise. C) Customers must pay an annual membership fee. D) The stores carry 3,700 to 8,000 items. E) The stores are rather stark outlets with no elaborate displays and generally low levels of service.
187)
One variation of off-price retailing is
Version 1
64
A) discount wholesalers. B) outlet stores. C) discount retailers. D) supercenters. E) hypermarkets.
188) Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores. These are referred to as A) extreme value retailers. B) warehouse clubs. C) discount houses. D) outlet stores. E) community shopping centers.
189)
Which statement about outlet stores isfalse?
A) Outlets allow retailers to maintain an image of offering merchandise at full price in their primary store. B) The growth of “bargain shopping” has increased demand for this type of off-price retailing. C) Increasingly, retailers are offering merchandise made expressly for the outlet division. D) Manufacturers use outlet stores to clear excess merchandise. E) Outlet stores require memberships, including an annual fee.
190)
Another name for an extreme-value retailer is
Version 1
65
A) specialty outlet. B) single-price retailer. C) hypermarket. D) outlet store. E) warehouse club.
191) Off-price stores that attract customers who want very low prices but in a “corner store” environment rather than a large supercenter experience are referred to as A) extreme-value retailers. B) hypermarkets. C) warehouse clubs. D) outlet stores. E) everyday value retailers.
192) Family Dollar, Dollar General, and the Dollar Tree are examples of which type of retailer? A) warehouse club B) hypermarket C) outlet store D) everyday value retailer E) extreme-value retailer
193) Most stores today are near several others in one of five settings that include all of theseexcept which?
Version 1
66
A) the regional shopping center B) the strip mall C) the old-town district D) the central business district E) the power center
194) Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the strip mall, or the A) suburban downtown. B) power center. C) exurb value center. D) rural micromall. E) urban megacenter.
195)
A central business district refers to A) a suburban mall that contains up to 100 stores and draws customer from 5 to 10 miles
away. B) the oldest retailing setting, located in a community’s downtown area. C) a retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. D) a cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. E) a collection of large stores over 100,000 square feet that offers a mix of about 40 percent food products and 60 percent general merchandise items.
196)
The oldest retail setting, located in the community’s downtown area, is referred to as
Version 1
67
A) the central business district. B) main street. C) the community square. D) the economic center. E) the historic commerce district.
197) Consumers often view central business district shopping as less convenient because of the lack of parking, higher crime rates, and A) outdated stores. B) a lack of ambience. C) fewer quality restaurants. D) few public restrooms. E) exposure to the weather.
198)
A regional shopping center refers to a
A) retail cluster in a downtown area. B) retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. C) cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. D) group of 50 to 150 stores that typically attracts customers who live or work within a 5to 10-mile range, often containing two or three anchor stores. E) retail cluster of stores in uptown areas.
199) A group of 50 to 150 stores that typically attract customers who live or work within a 5to 10-mile range, often containing two or three anchor stores, is referred to as a(n)
Version 1
68
A) power center. B) regional shopping center. C) strip mall. D) central business district. E) urban megacenter.
200) Large shopping areas often contain two or three________Blank stores, which are wellknown national or regional stores such as Nordstrom, Saks Fifth Avenue, and Bloomingdale’s. A) power B) mega C) anchor D) value E) outlet
201)
Which stores are most likely to be anchor stores at a regional shopping center?
A) Old Navy, Abercrombie & Fitch, and Sephora B) Hickory Farms, a locally owned jewelry store, and McDonald’s C) an antique store, Dollar General, and a bakery D) Dick’s Sporting Goods, Macy’s, and JCPenney E) a Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore
202) The West Edmonton Mall in Alberta, Canada, is a conglomerate of more than 800 stores, the world’s largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels. This retail complex is the largest example of a(n)
Version 1
69
A) regional shopping center. B) urban microcenter. C) megaplex. D) hypermarket. E) supercenter.
203) A retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20minute drive is referred to as a(n) A) power center. B) regional shopping center. C) community shopping center. D) central business district. E) urban megacenter.
204)
A community shopping center is a A) suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile
radius. B) cluster of stores in a downtown area. C) cluster of stores that serves people who are within a 5- to 10-minute drive. D) collection of category killers usually located outside a major amusement park or attraction. E) retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20minute drive.
205) A cluster of neighborhood stores, whose composition is typically unplanned and serves people who are within a 5- to 10-minute drive is referred to as a
Version 1
70
A) suburban shopping mall. B) strip mall. C) mini-mart. D) hypermarket. E) central business district.
206)
A strip mall is a A) suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile
radius. B) cluster of stores in a downtown area. C) retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20minute drive. D) cluster of neighborhood stores designed to serve people within a 5- to 10-minute drive. E) collection of category killers usually located outside a major amusement park or attraction.
207) Many neighborhoods have clusters of retail stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually A) is unplanned. B) includes national anchor stores. C) is restricted to privately owned specialty stores. D) is mainly fast-food restaurants. E) includes amusement or theme parks, or movie theaters.
208)
A huge shopping strip with multiple anchor (or national) stores is referred to as a
Version 1
71
A) central business district. B) regional shopping center. C) community shopping center. D) strip mall. E) power center.
209) Combining the convenient location of a strip mall with the influential draw of national stores and a grocery store results in shopping areas known as________Blank that bring shoppers on a weekly basis. A) suburban malls B) warehouse malls C) power centers D) retail malls E) cluster malls
210) Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores use placards throughout, which tell shoppers about the farmers who grew and harvested the various products sold. This use of signage to provide consumer information is a part of which element of the retailing mix? A) communication B) pricing C) merchandise D) goods and services factor E) location
211) Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws “a market feel.” In terms of the retailing mix, this tactic is related to
Version 1
72
A) pricing. B) goods and services factor. C) communication. D) merchandise. E) location.
212) Retail________Blank is often described as the way in which the store is defined in the shopper’s mind. A) size B) location C) product mix D) image E) anchor store
213) Price ranges, store layouts, and breadth and depth of merchandise lines are considered to be the________Blank of a store’s image. A) functional qualities B) sociological qualities C) psychological attributes D) lifestyle attributes E) atmospheric elements
214) Intangibles, such as a sense of belonging, excitement, style, or warmth, are considered to be________Blank of a store’s image.
Version 1
73
A) functional qualities B) sociological qualities C) psychological attributes D) antecedent attributes E) personality elements
215) Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to a retail store’s A) prices. B) image. C) emotive appeal. D) name. E) measurable attributes.
216)
Store layout, colors, lighting, and music are all considered part of a store’s retail A) sensory management plan. B) measurable attributes. C) antecedent attributes. D) emotive appeal. E) atmosphere.
217) The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery store’s
Version 1
74
A) atmosphere. B) sensory management plan. C) psychological attributes. D) personality type. E) sociological profile.
218) The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store is referred to as A) functional qualities. B) level of service. C) shopper marketing. D) lifestyle attributes. E) psychographic elements.
219) An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as A) category capacity. B) product management. C) retail inventory category. D) category management. E) automated inventory control.
220)
The marketing metrics related to a retailer’s customers include all of theseexcept which?
Version 1
75
A) the number of customers per day or per hour B) the average length of a store visit C) the inventory turnover D) the average transaction size per customer E) the number of transactions per customer
221) The marketing metrics related to a retailer’s products or merchandise include all of theseexcept which? A) the cost of carrying inventory B) the inventory turnover C) the average number of items per transaction D) the number of returns E) the average length of a store visit
222)
The marketing metrics related to a retailer’s finances include all of these except which? A) the markdown percentage B) the transactions per customer C) the return on sales D) the gross margin E) the sales per employee
223) A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining
Version 1
76
A) net sales. B) markdown percentage. C) market share. D) sales per square foot. E) transactions per customer.
224)
Sales per square foot is calculated by dividing A) profit margin by selling area in square feet. B) gross profit by selling area in square feet. C) total sales by selling area in square feet. D) return on investment by selling area in square feet. E) net sales by selling area in square feet.
225) Boston Pizza wants to determine how effective its retail space is compared to other pizza establishments in the local area. The calculation for this indicator is arrived at by determining the________Blank for its store and comparing it against the same indicator for all of the other local pizza outlets. A) same-store gross margin B) same-store sales growth C) sales per square foot D) net profit E) same-store net present value
226) A financial indicator used to compare the change in sales of stores that have been open for the same period of time is referred to as
Version 1
77
A) return on investment. B) percentage of markup. C) gross profit. D) sales per square foot. E) same-store sales growth.
227)
The calculation for same-store sales growth is A) Total sales ÷ Selling area in square feet. B) (Store sales in year 3 ÷ Store sales in year 1). C) Store sales in year 1 ÷ (Store sales in year 2 - Store sales in year 1). D) (Store sales in year 2 - Store sales in year 1). ÷ Store sales in year 1. E) Store 1 square feet ÷ Store 2 square feet.
228)
The description of how new forms of retail outlets enter the market is referred to as the A) retail life cycle. B) product life cycle. C) wheel of retailing. D) retail life matrix. E) retail continuum.
229)
The wheel of retailing is the
Version 1
78
A) life cycle of most consumer products sold by retailers. B) diffusion of types of retailers for a new product. C) progression of retail locations an outlet goes through. D) description of how new forms of retail outlets enter the market. E) description of retail management philosophies.
230) Many fast-food retailers like McDonald’s have followed a predictable pattern of how new forms of retail outlets enter the marketplace. McDonald’s evolved from a relatively simple restaurant with low margins, low prices, limited product offerings, and low institutional status to a worldwide chain with higher margins, high status, and a diverse menu of products. This evolution of McDonald’s restaurants is consistent with the A) slow to fast-food restaurant evolutionary cycle. B) revolution of retailing. C) retail life cycle. D) fast-food retail sequence. E) wheel of retailing.
Version 1
79
231) According to Figure 16-9, Box A represents the stage in the wheel of retailing when a retail outlet starts with
A) high prices, high margins, and high status. B) mixed prices, mixed margins, and mixed status. C) low prices, low margins, and low status. D) moderate prices, high margins, and high status. E) high prices, low margins, and mixed status.
Version 1
80
232) Figure 16-9 shows the wheel of retailing, which indicates that retail outlets typically go through changes with the passage of time, starting at Box A. What characteristics in the wheel of retailing does B represent?
A) low breadth of product, high depth of product, and high status B) higher prices, higher margins, and higher status C) low breadth of product, low depth of product, and low status D) moderate prices, low margins, and high status E) high depth of product, low margins, and mixed status
Version 1
81
233) According to Figure 16-9, if D represents the entry of new forms of the outlet into categories where older ones exist, where would you typically find the highest prices, margins, and status?
A) A B) B C) C D) D E) A & D
234) In initially competing with established burger chains, outlets such as Checkers Drive-In Restaurants typically enter the wheel of retailing with
Version 1
82
A) limited menus and limited service. B) extensive menus and expansive service. C) extensive menus and self-service. D) high prices and novel menu items. E) high prices and expansive service.
235) Retail outlets, like products, experience the process of growth and decline, which is referred to as the A) retail life cycle. B) wheel of retailing. C) product life cycle. D) retail continuum. E) retail life matrix.
236)
The retail life cycle refers to the
A) distinct stages a product goes through before it becomes obsolete. B) process of growth and decline that retail outlets, like products, experience over time. C) cycle of a customer’s buying behavior from awareness of a product to its ultimate purchase. D) relationship between the tangible aspects of a product and the types of services that need to accompany it. E) traditional management changes that take place as a retail outlet grows.
237)
The four stages of the retail life cycle are
Version 1
83
A) introduction, growth, maturity, and decline. B) awareness, inquiry, alternative evaluation, and purchase. C) early growth, accelerated development, maturity, and decline. D) innovation, standardization, adaptation, and obsolescence. E) innovation, adaptation, imitation, and obsolescence.
238) In the retail life cycle,________Blank is the stage of emergence of a retail outlet, with a sharp departure from existing competition. A) retail innovation B) maturity C) introduction D) early growth E) accelerated development
239) According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start-up costs? A) decline B) maturity C) introduction D) accelerated development E) early growth
240)
Which type of outlet is most likely in its early growth stage of the retail life cycle?
Version 1
84
A) warehouse clubs B) catalog retailers C) supermarkets D) general stores E) automated (no check-out) stores
241) Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle? A) decline B) maturity C) introduction D) early growth E) accelerated development
242)
During which stage of the retail life cycle do companies establish multiple outlets? A) decline B) maturity C) accelerated development D) introduction E) early growth
243) to
The key goal for retailers in the accelerated development phase of the retail life cycle is
Version 1
85
A) recover start-up costs. B) establish a dominant position in the fight for market share. C) delay entering the decline stage of the retail life cycle. D) find ways of discouraging customers from moving to low-margin, mass-volume outlets. E) establish a retail concept that is a sharp departure from existing competition.
244) Accelerated development in the retail life cycle is similar to which stage in the product life cycle? A) introduction B) maturity C) decline D) growth E) harvest
245) Which type of outlet is most likely in its accelerated development stage of the retail life cycle? A) online retailers B) department stores C) supermarkets D) business-district retailers E) convenience stores
246) The battle for market share is usually fought directly before the________Blank stage, and some competitors drop out of the market.
Version 1
86
A) decline B) growth C) maturity D) harvest E) introduction phase
247)
Discounting generally takes place during which stage of the retail life cycle? A) early growth B) accelerated development C) decline D) maturity E) early growth and maturity
248)
Which type of outlet is most likely in its maturity stage of the retail life cycle? A) single-price stores B) single-brand stores C) online retailers D) business-district retailers E) convenience stores
249)
Which type of outlet is most likely in its decline stage of the retail life cycle? A) single-price stores B) single-brand stores C) online retailers D) business district retailers E) convenience stores
Version 1
87
250) According to Figure 16-10, market share reaches its highest level during which stage of the retail life cycle?
A) early growth B) accelerated development C) decline D) maturity E) either early growth or maturity
Version 1
88
251)
According to Figure 16-10, Stage A represents which stage of the retail life cycle?
A) early growth B) introduction C) initiation D) maturity E) accelerated development
Version 1
89
252)
According to Figure 16-10, B represents which stage of the retail life cycle?
A) growth B) introduction C) expansion D) maturity E) accelerated development
Version 1
90
253)
According to Figure 16-10, C represents which stage of the retail life cycle?
A) decline B) stabilization C) expansion D) maturity E) accelerated development
Version 1
91
254)
According to Figure 16-10, D represents which stage of the retail life cycle?
A) decline B) stabilization C) obsolescence D) maturity E) accelerated development
255)
The coronavirus pandemic has resulted in what trend in retailing? A) greater breadth in products available for sale B) quicker price reductions for unpopular products C) safety and convenience initiatives D) rapid growth in local independent retailers E) more bargaining power for retailers with their wholesalers
Version 1
92
256) ________Blank retailers utilize and integrate a combination of traditional store formats and nonstore formats. A) Progressive B) Opportunistic C) Multichannel D) Cluster E) Power
257)
Multichannel retailers are retailers that A) sell different products through entirely different channels. B) sell through different channels under different brand names. C) utilize strategic and tactical wholesalers. D) utilize and integrate a combination of traditional store formats and nonstore formats. E) combine two channels for their offerings: one for products and the other for services.
258) Retailers such as Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of A) intertype competitors. B) multichannel retailers. C) vertically integrated retailers. D) scrambled merchandisers. E) dual distributors.
259) The complementary role of different communication and delivery channels is referred to as the________Blank effect.
Version 1
93
A) cumulative B) primacy C) cross-over D) complementary E) influence
260)
Retailers that integrate and leverage their stores, catalogs, and websites have seen A) a sizable increase in yearly sales from individual customers. B) a small increase in yearly sales from aggregate target market segments. C) no difference in yearly sales from individual customers. D) a decrease in yearly sales from individual customers. E) a large decrease in yearly sales from individual customers.
261)
Data analytics benefits retailers by
A) accurately predicting changes in the external environment. B) allowing merchants to provide personalized, real-time messaging and promotions. C) eliminating the need for wholesaling and the associated markups that raise prices. D) shortening the retail life cycle. E) improving sales per square foot or same-store sales growth by providing access to alternate channels.
262) ________Blank can benefit retailers by helping them to predict shopping behavior, provide personalized, real-time messaging and promotions, and track customer needs.
Version 1
94
A) Data analytics B) Brokers C) Telemarketing D) Multichannel retailing E) Shopper marketing
263) as
Independently owned firms that take title to the merchandise they handle are referred to
A) brokers. B) agencies. C) virtual retailers. D) merchant wholesalers. E) merchant retailers.
264) Merchant wholesalers are independently owned firms that________Blank the merchandise they handle. A) take title to B) bundle C) act as agents for D) break bulk and repackage E) do not deliver
265)
Which of these is a type of full-service merchant wholesaler?
Version 1
95
A) cash and carry wholesaler B) rack jobbers C) truck jobbers D) specialty merchandise wholesaler E) drop shippers
266) Wholesalers that carry a broad assortment of merchandise and perform all channel functions are referred to as a A) limited-line wholesaler. B) drop shipper. C) rack jobber. D) specialty merchandise wholesaler. E) general merchandise wholesaler.
267)
General merchandise wholesalers
A) carry a broad assortment of merchandise and perform all channel functions. B) own the merchandise they sell but do not physically handle, stock, or deliver it. C) have a small warehouse from which they stock their trucks for distribution to retailers. D) work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries. E) deal exclusively with small low-cost consumer products that are distributed to a select number of large retail chains.
268)
The wholesalers most prevalent in the hardware, drug, and clothing industries are
Version 1
96
A) specialty wholesalers. B) full-line wholesalers. C) cash and carry wholesalers. D) limited-line wholesalers. E) universal wholesalers.
269) A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a A) general merchandise wholesaler. B) truck jobber. C) specialty merchandise wholesaler. D) rack jobber. E) drop shipper.
270)
Specialty merchandise wholesalers
A) carry a broad assortment of merchandise and perform all channel functions. B) own the merchandise they sell but do not physically handle, stock, or deliver it. C) offer a relatively narrow range of products but have an extensive assortment within the product lines carried. D) work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries. E) deal exclusively with small low-cost consumer goods that are distributed to a select number of large retail chains.
271) Which type of wholesaler offers a relatively narrow range of products but has an extensive assortment within the product lines carried?
Version 1
97
A) general merchandise wholesaler B) limited-service wholesaler C) cash and carry wholesaler D) specialty merchandise wholesaler E) drop shipper
272) The wholesalers that perform all channel functions and are found in the health foods, automotive parts, and seafood industries would be A) specialty wholesalers. B) full-line wholesalers. C) limited wholesalers. D) universal wholesalers. E) cash and carry wholesalers.
273)
Which of these is a type of full-service merchant wholesaler? A) cash and carry wholesaler B) rack jobbers C) truck jobbers D) specialty merchandise wholesaler E) drop shippers
274)
The two prominent types of limited-service merchant wholesalers are rack jobbers and
Version 1
98
A) machine vendors. B) credit line wholesalers. C) transport vendors. D) cash and carry wholesalers. E) container transport vendors.
275)
Rack jobbers are wholesalers that
A) furnish the shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. B) own the merchandise they sell and have retailers store it in their warehouses. C) own the merchandise they sell but do not physically handle, stock, or deliver it. D) have a small warehouse from which they stock their trucks for distribution to retailers. E) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.
276) A limited-service wholesaler that furnishes shelves that display merchandise in stores, performs all channel functions, and sells on consignment to retailers is referred to as a A) stack loader. B) rack jobber. C) drop shipper. D) desk jobber. E) truck jobber.
277) Selling on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold, is characteristic of which limitedservice wholesaler?
Version 1
99
A) truck jobbers B) transport vendors C) rack jobbers D) cash and carry wholesalers E) drop shippers
278) A limited-service wholesaler that performs all channel functions and sells on consignment to retailers, which means it retains the title to the products displayed and bills retailers only for the merchandise sold, is a A) truck jobber. B) transport vendor. C) rack jobber. D) cash and carry wholesaler. E) drop shipper.
279)
Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items? A) cash and carry wholesalers B) truck jobbers C) general merchandise wholesalers D) rack jobbers E) drop shippers
280) A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of these would be the wisest wholesaler choice for its requirements?
Version 1
100
A) a rack jobber B) a truck jobber C) a cash and carry wholesaler D) a desk jobber E) a drop shipper
281)
Cash and carry wholesalers
A) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. B) take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise. C) own the merchandise they sell but do not physically handle, stock, or deliver it. D) have a small warehouse from which they stock their trucks for distribution to retailers. E) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.
282) Wholesalers that take title to merchandise but sell only to buyers that call on them, pay for and take away the merchandise themselves are referred to as A) rack jobbers. B) truck jobbers. C) transport vendors. D) cash and carry wholesalers. E) drop shippers.
283)
Cash and carry wholesalers
Version 1
101
A) handle bulky items such as lumber, bricks, and telephone poles. B) handle perishable items such as flowers, baked goods, and deli meats. C) handle office supplies, electrical supplies, hardware products, and groceries. D) are a kind of full-service wholesaler. E) lease vending machines to merchants and refill them as needed on a cash only basis.
284)
What is the key difference between merchant wholesalers and agents and brokers? A) Merchant wholesalers don’t perform all channel functions, whereas agents and brokers
do. B) Agents and brokers only deal with consumer channels. C) Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services. D) Merchant wholesalers take title to merchandise, whereas agents and brokers do not. E) Agents and brokers take title to merchandise, whereas merchant wholesalers do not.
285)
Manufacturers’ agents
A) represent a single producer and carry all products in the producer’s lines. B) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. C) take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise. D) own the merchandise they sell but do not physically handle, stock, or deliver it. E) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.
286) Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to as
Version 1
102
A) selling agents. B) line brokers. C) distribution brokers. D) manufacturers’ agents. E) brokers.
287)
Another name for a manufacturer’s agent is a manufacturer’s A) desk jobber. B) transport vendor. C) representative. D) wholesaler. E) rack jobber.
288)
Selling agents
A) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. B) represent a single producer and are responsible for the entire marketing function of that producer. C) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. D) take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. E) sell primarily large bulky products.
289) Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as
Version 1
103
A) brokers. B) line brokers. C) selling agents. D) distribution brokers. E) manufacturers’ agents.
290) Intermediaries that represent a single producer and are responsible for designing promotional plans, setting prices, determining distribution policies, and making recommendations on product strategy are referred to as A) brokers. B) line brokers. C) distribution brokers. D) selling agents. E) manufacturer’s agents.
291) Carla’s Cards uses a________Blank to sell and market the entire line of greeting cards. It designs promotional plans, sets prices, determines distribution policies, and makes recommendations to Carla on product strategy. A) manufacturer’s agent B) broker C) manufacturer’s branch office D) manufacturer’s sales office E) selling agent
292)
Brokers are independent firms or individuals who
Version 1
104
A) represent a single producer and are responsible for the entire marketing function of that producer. B) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. C) take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. D) own the merchandise they sell but do not physically handle, stock, or deliver it. E) bring buyers and sellers together to make sales.
293) Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales are referred to as A) manufacturers’ agents. B) brokers. C) selling agents. D) manufacturer’s branches. E) manufacturer’s sales offices.
294) A grocery manufacturer that is seeking an agent to act on its behalf on a permanent basis and receive a commission should use a A) food broker. B) grocery broker. C) selling agent. D) dual distribution system. E) rack jobber.
Version 1
105
295) Originally, filters for Mr. Coffee electric-drip coffeemakers were sold through appliance and mass merchandise stores. If the company decided to sell the filters in grocery stores where customers purchased their coffee, what type of intermediaries would the company most likely hire? A) a full-line wholesaler B) a drop shipper C) a food broker D) a truck jobber E) a manufacturer’s representative
296) A unique broker that acts in many ways like a manufacturer’s agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and A) receive a commission for their services. B) are paid a flat fee for each time the shelves are stocked. C) are paid by both the buyer and seller separately depending upon the size of the order. D) are paid a commission by the buyer and a bonus by the seller. E) are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.
297) Freightfinder.com is an Internet company that is called a “go-between.” If a trucker needs to find a load for a particular trade lane, he or she can visit this site, list the price and available truck space, and find a company that needs a shipment moved. Since the purpose of this website is to put buyer and sellers together so that a single sale can be made, this website can be categorized as a(n)
Version 1
106
A) selling agent. B) manufacturer’s representative. C) manufacturer’s agent. D) broker. E) administrator.
298) A business in Kansas City, Missouri, looking to rent office space should use a(n)________Blank to help it locate the most suitable space at the best possible rate. A) selling agent B) manufacturer’s representative C) manufacturer’s agent D) administrator E) broker
299) to as
Wholly owned extensions of the producer that perform wholesaling activities are referred
A) general merchandise wholesalers. B) cash and carry wholesalers. C) agents and brokers. D) manufacturer’s branch or sales offices. E) merchant wholesalers.
300) Unlike merchant wholesalers, agents, and brokers, manufacturers’ branches and sales offices are________Blank that perform wholesaling activities.
Version 1
107
A) independent distribution managers B) independent intermediary channels C) wholly owned extensions of the producer D) wholly owned extensions of the distributor E) wholly owned extensions of the retailer
301)
A manufacturer’s branch office
A) carries a producer’s inventory and performs the functions of a full-service wholesaler. B) performs a sales function as an option to agents and brokers. C) works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory. D) takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. E) brings buyers and sellers together to make sales.
302)
A manufacturer’s sales office
A) works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory. B) takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. C) carries a producer’s inventory, performs the functions of a full-service wholesaler, and is an alternative to a merchant wholesaler. D) does not carry inventory, typically performs a sales function, and is an alternative to agents and brokers. E) brings buyers and sellers together to make sales.
303) A wholly owned extension of the producer that does not carry inventory, typically performs only a sales function, and is an alternative to agents and brokers is referred to as a Version 1
108
A) brokering agent. B) cash and carry wholesaler. C) manufacturer’s sales office. D) manufacturer’s branch office. E) merchant wholesaler.
304) Similar to the West Edmonton Mall in Alberta, Canada, with shopping, restaurants, hotels, and a theme park, the Mall of America is a variation of a(n) A) central business district. B) regional shopping center. C) entertainment district. D) destination mall concept. E) anchored mall.
305)
Mall of America has two________Blank stores: Nordstrom and Macy’s. A) strip mall B) local competitor C) broker D) retailing mix E) anchor
306)
Key target markets for Mall of America are
Version 1
109
A) the interstate market and discount shoppers. B) shoppers who seek mainstream experiences and bargain hunters. C) large numbers of similar retailers to maintain a consistent retail profile. D) budget-conscious travelers and time-poor shoppers. E) the local market and tourists.
307)
To continue to be successful, Mall of America must
A) focus mostly on attracting suitable employees. B) keep a huge and diverse portfolio of retailers and attractions in the mall. C) refine and focus the retail mix to create a more consistent purchasing experience. D) promote its location as a key feature. E) reduce the variety of retailers to contain the costs of appealing to a wide range of customers.
308)
Describe several of the technical solutions that power today’s “smart mall.”
309)
Name the four utilities offered by retailers and identify a retailer that provides that utility.
310)
Explain the global impact of retailing.
Version 1
110
311)
Briefly describe the three ways retail outlets can be classified.
312) Briefly describe the advantages of being an independent retailer and the benefits an independent retailer can offer customers.
313)
Explain the relationship between a franchisee and a franchisor.
314)
Briefly describe the three levels of service offered by retail outlets.
315) Explain the difference between breadth of line and depth of line. Be sure to include the definition of scrambled merchandising in your explanation.
Version 1
111
316)
Explain the difference between a hypermarket and a supercenter.
317)
Why are vending machine prices often higher than those in a retail store?
318)
Explain why direct mail and catalogs are an attractive form of retailing.
319) Explain the dimensions of the retail positioning matrix, and give an example of a store that would be located in each quadrant of the matrix.
320)
What is the retailing mix?
Version 1
112
321)
Explain the difference between a markup, an original markup, and a maintained markup.
322)
Explain what a markdown is and its timing (i.e., when a retailer uses it).
323) What is off-price retailing? Identify and give an example of the three variations of offprice retailing.
324) List the five store locations or settings. How has the location of stores changed over the years?
325)
What is category management and when is it used?
Version 1
113
326)
Explain how the wheel of retailing works.
327)
Describe the retail life cycle.
328)
What are the current trends in retailing?
329)
Explain how data analytics is impacting retailing today.
330) Explain the difference between full-service and limited-service merchant wholesalers. List and describe the types of wholesalers that belong in each category.
Version 1
114
331)
Identify and describe the functions of agents and brokers.
Version 1
115
Answer Key Test name: Chap 16_16e_Kerin 1) C 2) D 3) B 4) A 5) D 6) A 7) B 8) C 9) D 10) E 11) C 12) D 13) B 14) E 15) A 16) B 17) D 18) D 19) D 20) C 21) A 22) C 23) C 24) B 25) E 26) D Version 1
116
27) A 28) E 29) D 30) D 31) E 32) D 33) E 34) C 35) B 36) A 37) A 38) A 39) E 40) C 41) D 42) D 43) A 44) C 45) A 46) E 47) A 48) B 49) D 50) C 51) B 52) D 53) E 54) A 55) C 56) D Version 1
117
57) D 58) B 59) A 60) E 61) A 62) B 63) D 64) C 65) E 66) C 67) A 68) B 69) C 70) D 71) B 72) D 73) E 74) A 75) B 76) C 77) A 78) A 79) E 80) E 81) E 82) B 83) A 84) E 85) D 86) C Version 1
118
87) B 88) E 89) C 90) B 91) C 92) E 93) B 94) C 95) A 96) C 97) C 98) E 99) C 100) D 101) A 102) C 103) B 104) D 105) E 106) B 107) D 108) A 109) C 110) A 111) D 112) C 113) C 114) E 115) B 116) C Version 1
119
117) A 118) C 119) D 120) B 121) A 122) A 123) D 124) E 125) E 126) B 127) B 128) B 129) B 130) E 131) D 132) B 133) A 134) C 135) C 136) D 137) A 138) E 139) C 140) C 141) D 142) A 143) D 144) B 145) C 146) D Version 1
120
147) B 148) D 149) E 150) D 151) A 152) C 153) B 154) B 155) C 156) A 157) B 158) E 159) D 160) A 161) B 162) D 163) C 164) C 165) B 166) C 167) A 168) D 169) B 170) D 171) C 172) A 173) C 174) E 175) A 176) C Version 1
121
177) B 178) D 179) C 180) A 181) E 182) B 183) D 184) A 185) C 186) B 187) B 188) D 189) E 190) B 191) A 192) E 193) C 194) B 195) B 196) A 197) E 198) D 199) B 200) B 201) D 202) A 203) C 204) E 205) B 206) D Version 1
122
207) A 208) E 209) C 210) A 211) C 212) D 213) A 214) C 215) B 216) E 217) A 218) C 219) D 220) C 221) E 222) B 223) D 224) C 225) C 226) E 227) D 228) C 229) D 230) E 231) C 232) B 233) C 234) A 235) A 236) B Version 1
123
237) C 238) D 239) E 240) E 241) E 242) C 243) B 244) D 245) A 246) C 247) D 248) E 249) D 250) D 251) A 252) E 253) D 254) A 255) C 256) C 257) D 258) B 259) E 260) A 261) B 262) A 263) D 264) A 265) D 266) E Version 1
124
267) A 268) B 269) C 270) C 271) D 272) A 273) D 274) D 275) A 276) B 277) C 278) C 279) D 280) A 281) B 282) D 283) C 284) D 285) B 286) D 287) C 288) B 289) C 290) D 291) E 292) E 293) B 294) A 295) C 296) A Version 1
125
297) D 298) E 299) D 300) C 301) A 302) D 303) C 304) B 305) E 306) E 307) B
Version 1
126
CHAPTER 17 1)
Seven Cycles’ tagline, “One Bike. Yours.” reflects the company’s
A) reputation for customized detailing of the finest motorcycles in competitive racing. B) commitment to incorporating individual customer input for every single bike. C) unique antitheft electronic GPS tracer built into every frame. D) creativity promise, guaranteeing that the color (paint job) is completely unique for each touring bike it makes. E) “one product-one market” segmentation strategy, in which all bikes are exactly alike.
2) Seven Cycles uses________Blank to create customer value, build relationships, and produce customer experiences in novel ways. A) the Internet B) just-in-time delivery C) marketing dashboards D) logistics management E) its own retail stores exclusively
3) Seven Cycles’ business model includes the Internet, which enables customers to collaborate on the bike design using the company’s________Blank fitting system that considers the rider’s size, aspirations, and riding habits. A) Rider Kit B) Cyclo Kit C) Custom Kit D) Proviso Kit E) Seven Fit
Version 1
1
4) Seven Cycles has a________Blank with its 89 authorized retailers in the United States and 30 international distributors in 40 countries. A) contentious relationship B) reciprocity agreement C) joint venture D) franchise contract E) collaborative relationship
5)
The greatest marketspace opportunity for Seven Cycles lies in its potential for creating A) form utility. B) time utility. C) price utility. D) place utility. E) possession utility.
6) Consumers and companies populate two market environments today. One is the traditional________Blank and the other is the A) extranet; intranet. B) superstore; hypermarket. C) marketplace; digital marketspace. D) shopping mall; virtual mall. E) online store; virtual store.
7) In the traditional sense, a________Blank is where buyers and sellers engage in face-toface exchange relationships in a material environment characterized by physical facilities and mostly tangible objects.
Version 1
2
A) marketspace B) multichannel online mall C) cyberstore D) virtual store E) marketplace
8) A digitally enabled environment characterized by face-to-screen exchange relationships and electronic images and offerings is referred to as a(n) A) extranet. B) intranet. C) marketplace. D) digital marketspace. E) web portal.
9) The key difference between the traditional marketplace and the new marketspace is that the latter is a________Blank exchange environment. A) tangible B) competitive C) physical D) material E) digital
10)
Which transaction occurred in the digital marketspace?
Version 1
3
A) Becca sold Discovery Toys creative puzzles at an in-home demonstration. B) Emiliano bought a brand-new pair of TOMS shoes through Zappos.com. C) Shelby purchased an iPhone case at a kiosk at the airport. D) Corey bought a double-dipped chocolate ice cream cone from the ice cream vendor when his ice cream truck came down the street. E) Josh bought his mother a menorah through theSource for Everything Jewish gift catalog by calling a toll-free telephone number.
11) About________Blank percent of Internet users aged 15 and older have shopped online in the United States. A) 19 B) 38 C) 48 D) 67 E) 90
12) Internet users aged 15 and older are expected to buy about________Blank worth of products and services online (excluding travel, automobiles, and prescription medications) in 2024. A) $9 billion B) $90 billion C) $200 billion D) $600 billion E) $1.2 trillion
13)
Legacy companies that sell luxury fashions
Version 1
4
A) offer lower prices and have smaller margins when selling online. B) are the fastest growing category in e-commerce. C) have been leaders in creating the online experience. D) generate the highest profit when they offer discount merchandise only online. E) are not likely to sell them online.
14) Some digital natives like eyeglass retailer Warby Parker, mattress seller Casper Sleep, clothing retailer Bonobos, jewelry retailer Blue Nile and Amazon A) are experimenting with ways to deliver products and services available to customers faster. B) provide price match guarantees and make comparison shopping easier right from the website. C) have opened physical showrooms that allow shoppers an opportunity to experience the company’s products. D) offer easily customized products and services. E) provide simple two-way communication so that consumers can tell marketers exactly what they want in the marketspace.
15) Which of these characteristics of the digital marketspace creates customer value by contributing to time and place utility? A) The marketspace makes products and services available to customers typically without a wait. B) Comparison shopping is easier in the marketspace than in the marketplace. C) Customers can shop in the marketspace anywhere at any time. D) Products available in the marketspace are more easily customized. E) Consumers can tell marketers exactly what they want in the marketspace.
Version 1
5
16) Although Recreational Equipment, Inc. (www.rei.com) has typical retail store hours, 35 percent of its orders are placed between the hours of 10 p.m. and 7 a.m. This shows how the digital marketspace contributes to customer value through the creation of A) time utility. B) place utility. C) possession utility. D) form utility. E) access utility.
17) Amazon is an Internet retailer located in the United States. About 45 percent of its sales are to customers who live outside the United States. This shows how the digital marketspace contributes to customer value through the creation of A) service utility. B) place utility. C) possession utility. D) form utility. E) time and possession utility.
18) Marks & Spencer is a well-known British department store. Customers from Chicago or Dallas can shop for clothing as easily as a person living in London. This shows how digital marketspace contributes to customer value through the creation of A) service utility. B) possession utility. C) form utility. D) possession and place utility. E) place utility.
Version 1
6
19) The General offers automobile insurance online. Buyers can purchase a policy over the Internet and the company will provide immediate proof of insurance to get legal drivers on the road quickly. This shows how the digital marketspace contributes to customer value through the creation of A) service utility. B) form utility. C) place utility. D) possession utility. E) price utility.
20) The greatest marketspace opportunity for marketers lies in its potential for creating________Blank since communication capabilities there invite consumers to tell marketers specifically what their requirements are. A) time utility B) price utility C) form utility D) possession utility E) place utility
21) In the marketspace, consumers can tell marketers specifically what their requirements are, making possible the customization of a product or service to fit their exact needs. This means that marketers can use it to enhance customer value by providing A) place utility. B) form utility. C) time utility. D) possession utility. E) product utility.
Version 1
7
22) Seven Cycles creates________Blank in its creation of customized bikes for its customers in 40 countries. A) time utility B) form utility C) place utility D) possession utility E) possession and place utility
23) Which example demonstrates how the digital marketspace creates customer value through form utility? A) Recreational Equipment, Inc. (REI), an outdoor gear marketer, receives 35 percent of its orders between the hours of 10 p.m. and 7 a.m. when its retail stores are closed. B) Forty-five percent of sales at Amazon.com are from buyers who live outside the United States. C) Travelocity.com provides almost immediate access to and confirmation of travel arrangements and accommodations. D) Bluefly.com, an apparel company, encourages customers to create their own uniquely designed shirts. E) Pediatricians can purchase dinosaur stethoscope covers at AllHeart.com.
24) Matt is planning a spring break trip to Mexico. At midnight, he decides to visit Orbitz, an electronic travel reservation system, to book his flight using the computer in his dorm room. He connects to Orbitz, where he is prompted to enter his preferred travel dates and times and to specify that price is most important to him. Moments later, several flights on various airlines, arranged from least to most expensive, appear on his computer screen. He requests aisle seats on a two-stop itinerary because this best meets his preferences. Orbitz then prompts Matt to provide his credit card information to complete the booking process. A copy of his receipt and itinerary are emailed to him. The total time to complete the transaction is less than five minutes. Orbitz created customer value for Matt by contributing to which form(s) of utility?
Version 1
8
A) time utility B) place utility C) possession utility D) form utility E) all four utilities: time, place, possession, and form
25) Two unique capabilities of digital technology,________Blank, promote and sustain customer relationships for the marketer. A) choice and control B) cost and convenience C) interactivity and individuality D) communication and information E) choice boards and collaborative filtering
26) Individuality and interactivity are important building blocks for buyer-seller relationships. For these relationships to develop, companies must treat customers as individuals and empower them to: (1) influence the timing and extent of the buyer-seller interaction and (2) A) demand product quality and timely service at lower prices than brick-and-mortar stores. B) shop confidently without fear of identity theft. C) speed up the click-through process with advanced technology. D) have a say in the kind of products they buy, the information they receive, and even the prices they pay. E) comparison shop with the prices of competitors alongside those of the firm.
27)
Interactive marketing refers to
Version 1
9
A) the two-way buyer-seller electronic communication in which thebuyer controls the kind and amount of information received from theseller. B) the two-way buyer-seller electronic communication in which theseller controls the kind and amount of information received from thebuyer. C) the interactive, digital system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options. D) the consumer-initiated practice of generating content on a marketer’s website that is custom-tailored to an individual’s specific needs and preferences. E) a digital environment characterized by face-to-screen exchange relationships and electronic images and offerings.
28)
With interactive marketing, A) the seller controls the kind and amount of information presented to the buyer. B) buyers and sellers communicate face-to-face in the traditional marketplace. C) a website high in media richness is necessary for an exchange to take place. D) the buyer controls the kind and amount of information received from the seller. E) real-time transactions are impossible.
29)
Interactive marketing often makes use of
A) niche marketspaces. B) sophisticated choiceboards. C) the digital divide, which separates online consumers from traditional marketplace consumers. D) a marketing mix strategy that de-emphasizes the promotion element. E) human-to-human mediated online “chat room” communication prior to the purchase.
Version 1
10
30) An interactive, digitally enabled system that allows individual customers to design their own products by answering a few questions and choosing from a menu of product attributes, prices, and delivery options, is referred to as a A) wiki. B) cookie. C) choiceboard. D) chat bot. E) collaborative filter.
31) Because________Blank collect precise information about preferences and behavior of individual buyers, a company becomes more knowledgeable about a customer and better able to anticipate and fulfill that customer’s needs. A) wikis B) choiceboards C) social media D) cookies E) collaborative filters
32) Mars, Inc., uses________Blank technology to let customers decorate M&Ms with personal photos and messages. A) bot B) cookie C) choiceboard D) filtering E) print screen
Version 1
11
33) The Converse By You website is an example of how the firm has effectively used________Blank technology to allow its customers to customize their shoes with various fabrics, rubber, eyelets, stitching, tags, and even custom embroidery. A) wiki B) social media C) choiceboard D) cookie E) collaborative filter
34) Customers can build their own bicycle at SevenCycles.com by answering a few questions and choosing from a menu of options. The design of a precision bicycle is made possible through the use of a A) wiki. B) cookie. C) bot. D) choiceboard. E) collaborative filter.
35) Nike is a recognized innovator in the use of________Blank for creating interactivity, individuality, and customer relationships. Its NikeiD product configurator invites customers to create one-of-a-kind shoes, messenger bags, and backpacks by simply answering a few questions and viewing the finished product from numerous angles. A) wikis B) cookies C) bot D) collaborative filtering E) choiceboards
Version 1
12
36) Customers can build their own computers with Dell’s online configurator. They simply have to answer a few questions and choose from a menu of product attributes, prices, and delivery options. The design of a Dell customized computer is made possible through the use of a A) choiceboard. B) permission-based e-mail. C) cookie. D) bot. E) collaborative filter.
37) A process that automatically groups people with similar buying intentions, preferences, and behaviors and then predicts future purchases is referred to as A) a choiceboard. B) collaborative filtering. C) connectivity. D) interactive marketing. E) personalization.
38)
Collaborative filtering is
Version 1
13
A) a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. B) the two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. C) the interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options. D) the consumer-initiated practice of generating content on a marketer’s website that is custom-tailored to an individual’s specific needs and preferences. E) an Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings.
39) Collaborative filtering gives marketers the ability to make a dead-on sales recommendation to a buyer in A) a matter of minutes. B) real time. C) about 24 hours. D) a few months’ time, after quarterly reports are compiled. E) time for a subsequent purchase.
40) When you view a selection at Amazon.com and see “Customers who bought this (item) also bought...,” you are seeing the application of A) choiceboards. B) adaptive selling. C) multichannel marketing. D) personalization. E) collaborative filtering.
Version 1
14
41) When you buy an e-book at Amazon.com, it uses________Blank to recommend an ebook by a similar author within the same genre. A) choiceboards B) connectivity C) collaborative filtering D) adaptive selling E) personalization
42) The consumer-initiated practice of generating content on a marketer’s website that is custom-tailored to an individual’s specific needs and preferences is referred to as A) personalization. B) digitalization. C) normalization. D) intermediation E) innovation.
43)
Personalization in the digital marketspace is
Version 1
15
A) the solicitation of a consumer’s consent to receive e-mail and advertising based on personal data supplied by the consumer. B) a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. C) the consumer-initiated practice of generating content on a marketer’s website that is custom-tailored to individual’s specific needs and preferences. D) the interactive, digitally enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options. E) an Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings.
44) When a shopper visits Sunglasses.com and clicks on a pair of sunglasses, a “see similar styles” option is shown. This option uses image recognition and artificial intelligence technology to show other sunglasses that might be suitable choices for the shopper. This practice is a form of A) permission marketing. B) personalization. C) transactional website. D) collaborative filtering. E) customerization.
45) ESPN allows users of its website to create a landing page that will always display favorite team scores and stories when they visit. ESPN.com uses the consumer-initiated practice of A) choice board. B) collaborative filter. C) individualization. D) personalization. E) permission marketing.
Version 1
16
46) The solicitation of a consumer’s consent (“opt-in”) to receive e-mail and advertising based on personal data supplied by the consumer is referred to as A) collaborative marketing. B) personalization. C) viral marketing. D) a choiceboard. E) permission marketing.
47)
Permission marketing is
A) the interactive, digitally enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options. B) the consumer-initiated practice of generating content on a marketer’s website that is custom-tailored to the individual’s specific needs and preferences. C) a digitally enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings. D) the solicitation of a consumer’s consent to receive e-mail and advertising based on personal data supplied by the consumer. E) a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.
48) A consumer’s consent to receive e-mail and advertising based on personal data supplied by the consumer is called
Version 1
17
A) opt-in. B) e-consent. C) a cookie. D) spam. E) e-authorization.
49)
Permission marketing is dependent on the________Blank of the customer. A) acceptance of cookies B) opt-in C) sales data D) consumer segment E) selling context
50) The three rules for a company to successfully employ permission marketing include which of these? A) Opt-in customers will be guaranteed the lowest possible price for an item compared to similar products or services sold by its competitors. B) The firm will never buy marketing lists from other companies that may contain their personal information. C) The firm makes sure opt-in customers receive only information that is relevant and meaningful to them. D) Customers will receive a “30-day money-back guarantee if not 100 percent satisfied” for any product purchased online. E) Customers will be protected from identity theft for any product purchased from its website.
Version 1
18
51) Clinique Cosmetics has a database of more than 600,000 people who registered on its website by providing selected personal information. The registration process requested that customers fill out a brief survey and check a box that allows Clinique to send them product updates via e-mail. When Clinique introduced its Anti-Aging Serum, it sent e-mails to all women over 35 who had indicated in the survey that they were worried about wrinkles. Eight percent of the women who received the e-mail purchased the new product. Clinique used________Blank to introduce its new product. A) opt-out marketing B) personalization C) viral marketing D) buzz marketing E) permission marketing
52) Monster.com is a leading online, job-hunting website. A person looking for a new job can register with the company in order to save searches. After registration, Monster will automatically e-mail job postings that are relevant to job-hunters. They can unsubscribe on the “Manage Saved Searches” page or with the opt-out link in the welcome e-mail. Monster.com uses________Blank to send its e-mail updates. A) opt-out marketing B) permission marketing C) personalization D) cookies E) wikis
53) ________Blank means a consumer has been given the option to receive e-mail and advertising and has agreed, based on personal data supplied by the consumer.
Version 1
19
A) E-consent B) NetChoice C) NetAgreement D) Opt-in E) E-authorization
54) ________Blank refers to the ability of consumers to stop or change the kind, amount, or timing of information sent to them about products or brands. A) E-decline B) Consent revocation C) Opt-out D) Permission denial E) Authorization retraction
55)
What is the standard for measuring a meaningful marketspace company presence? A) the sales compared to the marketplace alternative in a multichannel marketing context B) the quality of the website design C) the dollar amount in the shopping cart D) the quality of the customer experience E) the eight-second rule
56) From an interactive marketing perspective,________Blank is defined as the sum total of the interactions a customer has with a company’s website from the initial look at a home page through the entire purchase decision process.
Version 1
20
A) digitalization B) online marketing C) website design D) interactive marketing E) customer experience
57) Marketers produce a customer experience through seven website design elements, including which of these? A) communication B) creativity C) consistency D) collaboration E) control
58)
Consider Figure 17-1. Box A refers to which of these website design elements?
Version 1
21
A) creativity B) community C) consistency D) collaboration E) control
59)
Consider Figure 17-1. Box B refers to which of these website design elements?
A) customization B) control C) consistency D) collaboration E) creativity
Version 1
22
60)
Consider Figure 17-1. Box C refers to which of these website design elements?
A) creativity B) control C) consistency D) content E) collaboration
Version 1
23
61)
Consider Figure 17-1. Box D refers to which of these website design elements?
A) creativity B) commerce C) control D) consistency E) collaboration
Version 1
24
62)
Consider Figure 17-1. Box E refers to which of these website design elements?
A) creativity B) context C) control D) consistency E) collaboration
Version 1
25
63)
Consider Figure 17-1. Box F refers to which of these website design elements?
A) creativity B) connection C) control D) consistency E) collaboration
Version 1
26
64)
Consider Figure 17-1. Box G refers to which of these website design elements?
A) creativity B) communication C) control D) consistency E) collaboration
65)
In terms of the online customer experience, context refers to
A) the ability of a website to modify itself to, or be modified by, each individual user. B) a website’s aesthetic appeal and functional look and feel, reflected in site layout and visual design. C) the website’s ability to conduct sales transactions for products and services. D) a patented feature that allows users to order products with a single mouse click. E) the dialog that occurs between the website and its users.
66) A website’s aesthetic appeal and functional look and feel reflected in site layout and visual design is referred to as Version 1
27
A) customization. B) content. C) context. D) connection. E) conductivity.
67) Travel websites such as Priceline.com are designed to be________Blank oriented, with emphasis on destinations, scheduling, and prices. A) content B) functionally C) aesthetically D) text E) picture
68) Beauty product websites are traditionally designed to be more________Blank oriented than travel websites. A) content B) functionally C) aesthetically D) text E) picture
69) Wolfermans.com is a company that sells gourmet English muffins, specialty breads, and exquisite desserts in gift assortments. When you access its website, you discover 14 pictures that make lavish use of color. The Wolferman’s website design conveys the core consumer benefits provided by the company’s offerings through the use of
Version 1
28
A) context. B) commerce. C) communication. D) connection. E) customization.
70)
In terms of the online customer experience, content refers to A) a website’s capabilities to enable commercial transactions. B) all the digital information on a website—text, video, audio, and graphics. C) the multiple ways the website enables user-to-user communication. D) the dialog that unfolds between the website and its users. E) the information consumers provide to the firm through its website.
71)
The text, video, audio, and graphics that are found on a website are referred to as A) content. B) context. C) creativity. D) communication. E) connection.
72) In terms of design elements for websites,________Blank relevance and presentation along with context dimensions combine to engage a website visitor and provide a platform for the five other design elements.
Version 1
29
A) content B) customization C) creativity D) communication E) connection
73) The ability of a website to modify itself to, or be modified by, each individual user is referred to as A) connection. B) communication. C) site actualization. D) customization. E) customerization.
74)
In terms of the online customer experience, customization is
A) the consumer-initiated practice of generating content on a marketer’s website that is custom-tailored to an individual’s specific needs and preferences. B) the website’s ability to conduct sales transactions for products and services. C) an interactive, Internet-enabled system that allows individual customers to design their own products and services. D) a website’s aesthetic appeal and functional look and feel, reflected in site layout and visual design. E) the ability of a website to modify itself to, or be modified by, each individual user.
75) Websites that offer that allow moving items around to reflect a consumer’s priorities or selecting topics of interest to them, such as My eBay and My Amazon, have________Blank as a prominent design element.
Version 1
30
A) context B) customization C) content D) communication E) connection
76)
In terms of the online customer experience, connection is the
A) network of linkages between a company’s website and other sites. B) text, video, audio, and graphics that the website contains that appeal directly to the consumer. C) website’s capabilities to enable commercial transactions through credit, debit, or transfer payments (PayPal, etc.). D) speed and ease with which a customer can move between pages on a website. E) website’s ability to tailor itself to different users or to allow users to personalize the site.
77) Links that are embedded in the website, appear as highlighted words, a picture, or graphic, and allow a user to effortlessly visit other sites with a mouse click comprise a website’s________Blank design element. A) context B) customization C) content D) communication E) connection
Version 1
31
78) A visitor to WWE.com will find frequently updated information on WWE wrestlers, matches, and licensed merchandise as well as links to the W Network and to the WWE Facebook, Twitter, and YouTube sites. The WWE.com website uses________Blank, a website design element that influences customer experience. A) context B) communication C) commerce D) connection E) content
79) TheKnot.com, a website for locating everything needed for a wedding, contains several links to other websites that an engaged couple might need, including a travel agency, a linen store, a wedding gown retailer, among others. TheKnot.com is an example of a website that incorporates the________Blank design element. A) convenience B) connection C) control D) community E) communication
80) Users of NYTimes.com can peruse the book review section and click on a link to Barnes & Noble to order a book that was reviewed or browse related titles. NYTimes.com effectively uses the________Blank website design element. A) convenience B) control C) connection D) community E) communication
Version 1
32
81)
In terms of the online customer experience, communication refers to
A) the process of conveying an online presence to others that requires an organization, a website, an online consumer, and the processes of a shopping cart, online payment, and order fulfillment. B) the speed and ease with which a customer can move between pages on a website. C) a website’s ability to tailor itself to different users or to allow users to personalize the website. D) the dialog that unfolds between the website and its users. E) the links from a company’s website to a customer’s e-mail, Facebook, or Twitter account.
82) In terms of the online customer experience,________Blank is defined as the dialog that unfolds between the website and its users. A) context B) communication C) commerce D) connection E) community
83) Some websites enable a user to talk directly with a customer representative using an online chat feature while shopping on the site. This is an example of the________Blank website design element. A) convenience B) connection C) control D) community E) communication
Version 1
33
84) The__________Blank website design element can be provided by chatbots, mimicking human conversation using artificial intelligence. A) convenience B) connection C) control D) community E) communication
85) A web________Blank is a website hosted by a company that allows people to congregate online and exchange views on topics of common interest. A) village B) community C) district D) spot E) population
86)
In terms of the online customer experience, a web community refers to
A) an information system where anyone can post content depending upon his or her level of self-disclosure. B) an online club that offers its members significant discounts on purchases. C) a social network of individuals who interact through specific media, potentially crossing geographical and political boundaries, in order to pursue mutual interests or goals. D) a website that allow people to congregate online and exchange views on topics of common interest. E) a customer’s network of family, friends, acquaintances, and co-workers with whom he or she communicates on regular basis.
Version 1
34
87) Websites that allow people to congregate online and exchange views on topics of common interest are referred to as A) blogs. B) web communities. C) buzz. D) chat oases. E) web cafés.
88)
Web communities are
A) online cooperative buying centers that allow individuals to purchase at the same bulk rate as large organizations. B) customers linked by a common Internet service provider. C) virtual reality games that allow players to create their own worlds, countries, towns, etc. D) websites that allow people to congregate online and exchange views on topics of common interest. E) all customers served by a particular firm who are sent regular e-mail sales notifications and coupons from the manufacturer.
89) iVillage.com is a website for women that encourages its users to discuss health and beauty, parenting, personal finances, career management, and relationships. This website is an example of A) spam. B) a shopping bot. C) a web community. D) a blog. E) a web café.
Version 1
35
90) Figment.com is a website owned by publisher Random House that caters to teenagers who love to read and write fan fiction. It has more than 300,000 members who can share, create, and moderate content, as well as recommend products. This website is an example of A) spam. B) a shopping bot. C) a web community. D) a blog. E) a web café.
91) The Harley Owners Group (HOG), sponsored by Harley-Davidson and supported by its website, allows fellow HOG members to communicate with each other. Because it hosts HOG, the Harley-Davidson website incorporates the________Blank design element. A) context B) choice C) community D) convenience E) connection
92) A website that provides the ability to conduct sales transactions for products and services emphasizes the________Blank design element. A) commerce B) context C) community D) content E) connection
Version 1
36
93)
In terms of the online customer experience, commerce refers to
A) business-to-business only transactions made between a purchasing manager’s website and websites from its suppliers. B) Internet-based networks that permit communication between a company and its suppliers, distributors, and other partners. C) websites specifically designed for electronic funds transfer with banks and other institutions such as PayPal. D) the application of information and communication technologies in support of the firm’s entire business activities. E) the website’s ability to conduct sales transactions for products and services.
94) When Kobi visited www.disneystore.com, she looked at several different classic Winnie the Pooh plush animals before she selected Piglet and Tigger and put them in her shopping cart. She next went to checkout where she confirmed her purchase, typed in her address, and concluded the transaction by providing her credit card information. In terms of customer experience, this example describes the________Blank website design element. A) context B) community C) content D) commerce E) connection
95) Most websites do not include every design element. Websites that are used primarily for advertising and promotion purposes emphasize the________Blank and connection elements. A) communication B) customization C) community D) consent E) commerce
Version 1
37
96) Most websites do not include every design element. Although every website has________Blank, they differ in the use of the remaining five elements. A) content and commerce B) commerce and customization C) context and content D) communication and community E) context and connection
97) as
The amount of time per month that visitors spend on a company’s website is referred to
A) screen time. B) stickiness. C) staying power. D) browsing time. E) connectiveness.
98)
To gauge website stickiness, a company monitors the
A) average time it takes customers to make a purchase from the time they log on to a website to the time they log off. B) average time it takes for customers to move from one page of a website to another. C) amount of time per month, in minutes, visitors spend on a company’s website. D) number of visits by a unique customer to the same website before an actual purchase is made. E) total time, in hours and minutes, that it takes for a customer to make an online purchase.
Version 1
38
99)
To gauge website stickiness, companies use this formula:
A) Average time spent per unique hourly visitor in minutes = (Average visits per unique hourly visitor) × (Average time spent per visit in minutes). B) Average time spent per unique daily visitor in minutes = (Average visits per unique daily visitor) × (Average time spent per visit in minutes). C) Average time spent per unique weekly visitor in minutes = (Average visits per unique weekly visitor) × (Average time spent per visit in minutes). D) Average time spent per unique yearly visitor in minutes = (Average visits per unique yearly visitor) × (Average time spent per visit in minutes). E) Average time spent per unique monthly visitor in minutes = (Average visits per unique monthly visitor) × (Average time spent per visit in minutes).
100) Automobile dealerships have invested significant time, effort, and money in their websites. Dealerships commonly measure website performance by tracking visits, visitor traffic, and________Blank, which refers to the amount of time per month that visitors spend on their websites. A) stickiness B) glueyness C) gumminess D) adhesiveness E) connectiveness
Version 1
39
101) Consider the Stickiness Marketing Dashboard for an automobile dealership. To gauge the stickiness of its website, the firm monitors several measures. For 2013 where would Arrow A be shown, as the average time spent per unique monthly visitor (in minutes) on the automobile dealership’s website?
A) 4.0 minutes B) 4.5 minutes C) 7.5 minutes D) 9.0 minutes E) cannot be determined
102) Consider the Stickiness Marketing Dashboard for an automobile dealership. To gauge the stickiness of its website, the firm monitors several measures. For 2014 where would Arrow B be shown, as the average time spent per unique monthly visitor (in minutes) on the automobile dealership’s website?
Version 1
40
A) 4.0 minutes B) 6.0 minutes C) 10.0 minutes D) 16.0 minutes E) cannot be determined
103) The subsegment of all Internet users who employ this technology to research products and services and make purchases is referred to as A) web consumers. B) online consumers. C) cyberspace consumers. D) cross-channel consumers. E) multichannel consumers.
104)
Compared to the general population, online consumers tend to be A) younger, more educated, more affluent, but equally likely to be male or female. B) younger, more educated, conservative, and more often male. C) younger, more educated, socially conscious, and more often female. D) older, less educated, less affluent, and more often male. E) older, more educated, more affluent, and more often female.
105)
Which statement regarding online consumers is most accurate?
Version 1
41
A) With the exception of the setting used to make the exchange (online versus retail store), the profile of an online customer is almost identical to the traditional shopper. B) Although online shopping and buying is popular, a small percentage of online consumers still account for a disproportionate share of online retail sales in the United States. C) The group most likely to use the Internet to make purchases is comprised of educated males between the ages of 25 and 39. D) Although growing in total sales revenues, the percentage of online sales is beginning to decline due to privacy concerns and the passage of a national Internet sales tax. E) Many people are resistant to purchasing online due to the difficulty in navigating many websites.
106)
Which profile would most likely describe an online consumer?
A) a tech-savvy grade-school student living with her parents B) a 21-year-old high-school graduate earning $18,000 annually living in his own apartment C) a 28-year-old chemical engineer living in the suburbs with her husband and two children D) a 55-year-old factory worker living with his wife in an apartment E) a 70-year-old retired naval officer living in a retirement community
107) Among popular purchases online, a common product characteristic consists of items for which product information is an important part of the purchase decision, but prepurchase trial is not necessarily critical. This includes items such as A) music and videos. B) computers. C) clothing. D) unique items. E) gifts.
Version 1
42
108) Among popular purchases online, one kind of product consists of items like computers and computer accessories and furniture and home furnishings for which A) digital delivery is an important factor as well as post-purchase support services. B) price and speed of delivery are the determinant sales factors. C) convenience is very important, even more so than price or quality. D) product information is an important part of the purchase decision but prepurchase trial is not necessarily critical. E) price and delivery time are not key factors, but product warranties are very important.
109) Among popular purchases online, one kind of product consists of items like computer software, music, and video for which A) prepurchase trial is critical. B) digital delivery is the single most important factor. C) audio or video demonstration is important. D) price and delivery time are not key factors. E) price and speed of delivery are the determinant sales factors.
110) Among popular online purchases, one kind of product includes regularly purchased consumer packaged goods such as personal care items where A) customer value is the most important element. B) price and delivery time are not key factors. C) convenience is very important. D) digital delivery is an important factor. E) price and speed of delivery are the determinant sales factors.
Version 1
43
111) A common product characteristic for items purchased online consists of high standardization, such as with automotive products and casual apparel and accessories for which A) audio or video demonstration is important. B) price and delivery time are not key factors. C) digital delivery is an important factor. D) assortment and speed of delivery are the determinant sales factors. E) information about price is important.
112)
Which product category has the highest percentage of sales made online? A) professional services B) personal care and household products C) real estate D) education E) books, music, and video
113)
The six reasons consumers shop and buy online are A) interest, personalization, cost, control, speed, and customization. B) customization, customerization, price, service, entertainment, and convenience. C) content, context, utility, entertainment, communication, and cost. D) convenience, choice, customization, communication, cost, and control. E) control, utility, interest, personalization, choice, and flexibility.
114) Consumers can visit the BananaRepublic.com website to view and order from among thousands of displayed clothing items at any time of day, without dealing with traffic, parking, or standing in store checkout lines. This describes one example of why consumers shop and buy online, which is
Version 1
44
A) convenience. B) customization. C) communication. D) cost. E) control.
115) Online buyers of consumer electronics can shop websites like QVC.com, a general online merchant that offers more than 100,000 products. This describes one example of why consumers shop and buy online, which is A) convenience. B) choice. C) cost. D) control. E) customization.
116) Levi’s Japan has a website that caters to those looking to tailor their own denim, allowing customers to choose from different cuts (502 regular wide, 505 regular wide, 517 boot cut), coloration (dark used, mid used), button and rivet colors (gold, silver, bronze), inseam length, and extra treatments (sanding, paint drips). From start to delivery takes about a month. This describes one example of why consumers shop and shop and buy online, which is A) control. B) cost. C) choice. D) customization. E) convenience.
Version 1
45
117) iVillage.com is a website targeted at women who share common interests such as career management, personal finances, parenting, relationships, beauty, and health. The site features articles, newsletters, and videos on these topics as well as the opportunity for visitors to link to its social media sites like Facebook and Pinterest. This describes one example of why consumers shop and buy online, which is A) control. B) customization. C) convenience. D) choice. E) communication.
118) Sophisticated software allows Delta Air Lines to change its prices in real time in response to supply and demand conditions. This describes one example of why consumers shop and buy online, which is A) convenience. B) choice. C) cost. D) customization. E) control.
119) Consumers deftly use Internet technology to seek information, evaluate alternatives, and make purchase decisions on their own time, terms, and conditions. This describes which reason consumers buy and shop online? A) convenience B) choice C) customization D) control E) communication
Version 1
46
120) Online shopping and buying helps consumers avoid traffic and standing in store checkout lines; they sometimes use online shopping for A) customerization. B) control. C) convenience. D) utilitarianism. E) marketplace value.
121)
Which characteristic of online shopping contributes to its convenience?
A) Customers don’t have to fight traffic, find a parking space, walk long aisles, or stand in store checkout lines. B) Consumers can avail themselves of numerous websites for almost any product or service they want. C) Consumers who prefer one-of-a-kind items that fit their specific needs can create them online. D) Consumers can engage in an electronic dialog with marketers. E) Consumers are in charge in the marketspace.
122) Electronic shopping agents that search websites to compare prices and product or service features are referred to as A) cookies. B) weblinks. C) intranets. D) extranets. E) bots.
Version 1
47
123)
Bots are
A) web pages that serve as a publicly accessible personal journal for an individual or organization. B) computer files that a marketer can download onto the computer or mobile phone of an online shopper who visits the marketer’s website. C) electronic shopping agents that search websites to compare prices and product or service features. D) filters that reduce the number of unsolicited messages allowed into an individual’s email account. E) interactive Internet-enabled systems that allow individual customers to design their own products and services.
124)
Bots contribute to the convenience of online shopping because they A) reduce time spent online. B) allow customers to make online comparisons of prices and product features. C) permit customers to design one-of-a-kind items that fit their specific needs. D) allow customers to engage in an electronic dialog with marketers. E) offer customers almost any product or service they want.
125) Megan is looking for a gift for her older brother who enjoys reading mysteries. A book by one of his favorite authors was recently published and she plans to buy it. However, because she is on a limited budget, she wants to find the lowest price. The most convenient way for Megan to find the best price for the book would be to
Version 1
48
A) drive to a large shopping center that is 45 minutes away from home where there are two bookstores (Barnes & Noble and Half-Priced Books) to see which one has the book at the lowest price. B) call all five bookstores in her community to inquire about the price of the book at each one. C) use a bot to search the websites of online booksellers and locate the best price. D) use a cookie to contact various bookstores and find the one with the best price. E) create a choice board using the Barnes & Noble’s Facebook page.
126)
According to the eight-second rule,
A) it only takes eight seconds for someone to learn how to navigate a marketer’s website. B) any online purchase should take no more than eight seconds to complete. C) prospective customers will not wait longer than eight seconds for a response to an online chat. D) 50 percent of online consumers will spend less than eight seconds viewing a single webpage. E) customers will abandon a website if download time exceeds eight seconds.
127) It is commonly believed that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds, which is referred to as the A) stickiness guideline. B) 80/20 principle. C) eight-second rule. D) law of limited patience. E) expedience factor.
Version 1
49
128) On eBay.com, the Internet auction website, sellers design the web page on which they sell their merchandise. One individual who was selling a Coca-Cola tray from the 1920s used a background that resembled fluffy clouds in a blue sky. The page contained six high resolution pictures of the tray from different angles and an animated depiction of a waving American flag. Many potential buyers abandoned the web page before all the pictures downloaded. The seller must have been unaware of the A) eight-second rule. B) 80/20 principle. C) stickiness principle. D) hierarchy of needs. E) efficiency rule.
129) The ability of customers to avail themselves of numerous websites for almost anything they want, as well as the ability to engage in electronic dialog with marketers for the purpose of making informed decisions, are dimensions of________Blank, one of the reasons consumers shop and buy online. A) choice B) communication C) customization D) control E) compatibility
130) Choiceboard and personalization technologies that invite customers to engage in an electronic dialog with marketers for the purpose of making informed choices is referred to as A) chat assistance. B) blog assistance. C) decision assistance. D) choice assistance. E) bot assistance.
Version 1
50
131)
Choice, a reason customers shop and buy online, has two dimensions. They are A) availability and price. B) speed and availability. C) wide product or service selection and speed. D) choice assistance and speed. E) wide product or service selection and choice assistance.
132) One of the reasons for the continued success of Zappos.com is its ability to provide________Blank in the form of online chat and carefully designed search capabilities. A) chatbots B) choice assistance C) sales promotions D) adaptive selling E) bot referral
133) Digital capabilities that make possible a highly interactive and individualized information and exchange environment for shoppers and buyers is referred to as A) connectivity. B) customerization. C) customization. D) communication. E) convenience.
134)
Customization refers to
Version 1
51
A) the specialization in one very small but highly sought out specialty item. B) digital capabilities that make possible a highly interactive and individualized information and exchange environment for shoppers and buyers. C) the growing practice of personalizing the marketing mix elements to provide a unique shopping and buying experience for each customer. D) items that are unique in every dimension to minimize feature bloat. E) novelty items used as sales promotions such as cups, hats, etc., that will be imprinted with a company logo and use the company colors and slogans if applicable.
135)
The benefit of customization in the online environment is that
A) a highly interactive and individualized information and exchange environment is created for shoppers and buyers. B) it helps customers reduce their search costs and more conveniently find the offerings with the desired features. C) it protects online consumer privacy about the customized products and services they desire. D) it records users’ visits to websites, which enhances online consumers’ convenience in future visits by suggesting offerings that may be of interest to them when they access the site. E) it reduces costs and wasted coverage both for the buyer and seller.
136) The growing practice of not only customizing a product but also personalizing the marketing and overall shopping and buying interaction for each customer is referred to as A) connectivity. B) customerization. C) customer digitalization. D) online facilitation. E) intermediation.
Version 1
52
137) Reebok, Schwab, Dell, and Seven Cycles are all examples of companies that have been very successful because of their ability to________Blank products and services for their online customers and also personalize the marketing and overall shopping and buying interaction for them. A) dispense B) recommend C) finance D) distribute E) customize
138) Digitally enabled technology employed in transmitting information online from marketerto-consumer, consumer-to-consumer, and consumer-to-marketer is referred to as A) customerization. B) viral marketing. C) communication. D) spam. E) buzz.
139) Digitally enabled technologies provide online communication capabilities that take three forms. They are
Version 1
53
A) a highly interactive and individualized information and exchange environment, telephone-based customer service, and order processing via PayPal. B) marketer-to-consumer e-mail notifications, telephone-based customer service, and order processing via PayPal. C) consumer-to-marketer buying and service requests, marketer-to-consumer e-mail notification, and telephone-based customer service. D) recording a user’s visits to websites, consumer-to-marketer buying and service requests, and marketer-to-consumer e-mail notifications. E) marketer-to-consumer e-mail notifications; consumer-to-marketer buying and service requests; and consumer-to-consumer chat rooms, instant messaging, and social networking websites.
140) The communication capabilities of Internet-enabled technologies take three forms, one of which is A) marketer-to-consumer e-mail notifications. B) government-to-marketer Do Not Spam monitoring. C) phishing and spamming whistleblowing. D) online colonies. E) web-to-web customer exchanges.
141) Interactive communication capabilities provide consumer convenience, reduce information search costs, and make choice assistance possible. Communication also promotes A) consumer responsibility. B) closer global alliances. C) web communities. D) social responsibility. E) courteous online dialog.
Version 1
54
142) A web page that serves as a publicly accessible personal journal for an individual or organization is referred to as A) spam. B) a blog. C) buzz. D) a forum. E) a journalog.
143)
A blog is a(n)
A) private online forum centered on a specific topic or theme. B) running account of all purchases made at a single website. C) web page that serves as a publicly accessible personal journal for an individual or organization. D) itemized list of all website “hits” on an individual person including a short biographical summary. E) web network that works as a family tree linking all members of a group or organization.
144)
Spam refers to
A) junk e-mail. B) published private, secret, or classified e-mails from anonymous sources. C) computer-generated e-mails that are self-directed and self-perpetuating. D) a marketer-generated “cookie” whose sole purpose is to block a consumer from accessing competitors’ websites. E) any nonpersonal electronically generated message sent via the Internet.
145)
Junk e-mail is referred to as
Version 1
55
A) trash mail. B) phishing. C) virus marketing. D) spam. E) viral marketing.
146) The________Blank Act restricts information collection and unsolicited e-mail promotions on the Internet. A) Anti-SPAM B) E-Mail Privacy C) Digital Marketing D) Consumer E-Mail Solicitation E) CAN-SPAM
147)
Marketspace word-of-mouth behavior is referred to as A) tweets. B) buzz. C) instant messaging. D) blogging. E) likes.
148)
In marketspace, buzz refers to
Version 1
56
A) instant messaging. B) Facebook posting or tweeting. C) word-of-mouth behavior. D) firm-based viral marketing. E) negative online ads.
149)
Buzz is particularly influential for which items? A) toys, pharmaceuticals, movies, and consumer electronics B) baby products, gardening supplies, retirement funds, and health insurance C) funeral services, cruises, foreign travel, and higher education D) day care, dating sites, restaurants, and home repair E) sports lessons, veterinarians, dance studios, and car washes
150)
Viral marketing refers to
A) an embedded message that causes a pop-up screen to appear every time a user types in a specific word. B) malicious malware that is used to create doppelgangers on competitors’ websites. C) a subversive program that automatically transfers viruses from one website to another. D) a digitally enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking, and blogs. E) an online multilevel marketing promotion that awards participants based upon how many friends they “like” on personal social networking sites such as Facebook.
151) A digitally enabled promotional strategy that encourages individuals to forward marketerinitiated messages to others via e-mail, social networking, and blogs is referred to as
Version 1
57
A) buzz marketing. B) customerization. C) viral marketing. D) “liking.” E) permission marketing.
152)
Which of these is an approach to viral marketing?
A) offer incentives for referrals B) use customerization to impact customer satisfaction C) employ choiceboards to allow consumers an easy way to share information D) use niche marketing to attract customers that are likely to be opinion leaders E) use permission marketing to avoid sending commercial messages to those who do not want them
153) CareerBuilder’s Monk-e-mail site allows users to send personalized, private-themed ecards for all occasions, and users have sent more than 100 million Monk-e-mails. CareerBuilder is using________Blank to promote its services. A) viral marketing B) opt-out marketing C) customerization D) niche marketing E) buzz marketing
154) Burger King received much attention for its Whopper Sacrifice campaign that asked, “What do you love more, your friend or the Whopper?” Facebook users were asked to “unfriend” 10 people from their Facebook friends list in exchange for a free burger. Burger King was using incentives as a form of________Blank to promote its products.
Version 1
58
A) opt-out marketing B) customerization C) niche marketing D) buzz marketing E) viral marketing
155) Visitors to the Universal Studios theme park can borrow one of three user-controlled webcams to take pictures of the park and themselves enjoying the park. Then the webcam users can e-mail the pictures to their friends. The average webcam user sends four e-mails to friends, and this has resulted in more than 6 million park images being sent to potential visitors. Universal Studios is using________Blank to promote its theme park. A) opt-out marketing B) customerization C) niche marketing D) buzz marketing E) viral marketing
156) At the De Beers website, users can design their own rings and show them to others. One out of five website visitors e-mail their ring design to friends and relatives who may then visit the site. De Beers is using________Blank to promote its diamonds. A) opt-in marketing B) customerization C) stealth marketing D) buzz marketing E) viral marketing
Version 1
59
157) People who referred 10 friends to the Procter & Gamble website for Physique shampoo received a free, travel-sized styling spray and were entered in a sweepstakes to win a year’s supply of the shampoo. The promotion generated 2 million referrals and made Physique the most successful new shampoo ever launched in the United States. To accomplish this, P&G used A) opt-out marketing. B) customerization. C) viral marketing. D) niche marketing. E) buzz marketing.
158) The practice of changing prices for products in real time in response to supply and demand conditions is referred to as A) dynamic pricing. B) virtual pricing. C) experience curve pricing. D) skimming pricing. E) elasticity pricing.
159) Which pricing tactic would Ticketmaster use if it wanted to price sports and concert tickets in a flexible way, in response to supply and demand? A) yield management pricing B) experience curve pricing C) dynamic pricing D) cost-plus pricing E) skimming pricing
160)
Which statement about cost and its impact on online shopping is most accurate?
Version 1
60
A) Dynamic pricing cannot be used online because there is a need to respond quickly to changes in supply and demand conditions. B) The margins for online offerings are usually higher than those purchased in traditional marketplaces. C) Any price advantage for online purchases is lost in shipping and handling fees. D) Many of the most popular items bought online can be purchased at the same price or cheaper than in retail stores. E) Dynamic pricing is the most commonly used pricing strategy for Internet purchases.
161)
Which statement about cost and its impact on online shopping is most accurate?
A) Dynamic pricing is commonly used online because there is no need to respond quickly to changes in supply and demand conditions. B) The margin for online offerings is usually higher than those purchased in traditional marketplaces. C) Dynamic pricing is the most commonly used pricing strategy for Internet purchases. D) Any price advantage for online purchases is lost in shipping and handling fees. E) Lower costs for external information search is one of the major reasons for the popularity of online shopping.
162)
Dynamic pricing is typically used for pricing A) products and services that cannot be purchased in a retail store. B) the very latest items such as new season fashions. C) time-sensitive items such as airline seats. D) high demand products or services that are expected to sell out quickly. E) electronic services such as computer repair.
163) Out-of-date items such as last year’s models of computer equipment and accessories sold online are often priced using
Version 1
61
A) time-sensitive pricing. B) real-time response pricing. C) dynamic pricing. D) auction pricing. E) transparent pricing.
164)
Online consumers are considered empowered consumers because
A) products and services purchased online often cost less than in a retail store. B) online shopping does not require that they fight traffic, find a parking space, walk long store aisles, and wait in line at checkout. C) they use technology to seek information, evaluate alternatives, and make purchase decisions on their own time, terms, and conditions. D) there are websites for almost any product or service they want. E) they can engage in an electronic dialog with marketers.
165) Because online shoppers seek information, evaluate alternatives, and make purchase decisions on their own time, they are A) spending more time shopping outside the home. B) more cautious than other shoppers. C) more informed and discerning shoppers. D) less likely to become addicted to shopping. E) have more ability to save online data.
Version 1
62
166) Frank needs to buy a new car. Before visiting a showroom, he logs onto www.autobytel.com. He compares the attributes of various makes and models, find information about the prices of various option packages, and learn the manufacturer’s suggested retail prices for different cars. After deciding on the car he wants to buy, Frank visits the local showroom and negotiates with the salesperson for the model and options package he wants. Because Frank is so informed about prices, he is able to make a deal that is several hundred dollars less than the salesperson’s best offer. Frank’s car-buying experience illustrates which reason consumers shop online? A) convenience B) communication C) customization D) choice E) control
167) Studies show that automobile shoppers spend an average of 11 hours________Blank before setting foot in a showroom. A) driving vehicles owned by friends or family B) creating a new household budget C) developing a negotiation technique D) researching cars online E) getting new-car recommendations from personal sources
168)
Which of these may be a reason why consumers avoid shopping and buying online? A) bots B) dynamic pricing C) spam D) cookies E) showrooming
Version 1
63
169) Computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer’s website are referred to as A) bots. B) cookies. C) spiders. D) spam. E) interstitials.
170)
Cookies are
A) computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer’s website. B) embedded programs that flash split-second subliminal messages at regular intervals. C) benign links that direct customers to alternate websites that might be of interest to them. D) electronic unsolicited e-mail. E) spyware used to secretly retrieve personal information from a person’s computer.
171) Which of these allows a marketer’s website to record a user’s visit to that website, and store and retrieve this information in the future? A) spam B) worms C) first-party cookies D) trackers E) third-party cookies
Version 1
64
172) What technology allows marketers to capture website visitor information during a visit to its site, including expressed product preferences, personal data, passwords, financial information, and credit card numbers? A) spam B) choiceboards C) third-party cookies D) first-party cookies E) trackers
173) Which of these do first-party cookies provide to improve a consumer’s online buying and shopping experience? A) convenience B) cost C) choice D) communication E) customization
174) ________Blank are created by websites other than the one a user is currently visiting and have been, until recently, common on web browsers such as Safari, Firefox, and Google Chrome for tracking a user's search patterns. A) Spam messages B) Choiceboards C) Third-party cookies D) First-party cookies E) Trackers
175)
Those people who object to cookies are most likely concerned with
Version 1
65
A) costs. B) privacy. C) spam. D) viruses. E) information overload.
176) Suppose you are designing a marketing website and you would like it to be as userfriendly as possible. In particular, you do not want repeat customers to have to enter in their address, e-mail, telephone number, and credit card data every time they make an online purchase. To achieve this goal, you would most likely use A) first-party cookies. B) customerization. C) spam. D) webrooming. E) bots.
177) The practice of using information provided by third-party cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising is referred to as A) viral marketing. B) buzz. C) data mining. D) behavioral targeting. E) spyware.
178)
Two major issues that contribute to consumers’ hesitancy to use online shopping are
Version 1
66
A) quality and price. B) privacy and security. C) computer knowledge and security. D) price and privacy. E) quality and computer knowledge.
179) A recent Pew Research Center poll reported that________Blank percent of Americans say the potential risks they face from online data collection by companies outweigh the benefits. A) 15 B) 28 C) 46 D) 63 E) 81
180) According to the Federal Trade Commission,________Blank fraud complaints are Internet-related, costing consumers $560 million. A) very few B) about half of C) about 10 percent of D) nearly all E) about three-quarters of all
181) Self-regulatory efforts to respond to online consumers’ concerns about privacy and security include
Version 1
67
A) eliminating the use of cookies on marketing websites. B) prohibiting the collection of online consumers’ personal and financial information. C) awarding the TrustArc trademark to companies that comply with privacy standards. D) lobbying against the adoption of federal Internet privacy laws. E) relying on the U.S. government to protect online consumer privacy.
182) Which statements regarding when and where online consumers shop and buy is most accurate? A) Eighty percent of online sales occur on weekdays. B) The busiest online shopping day is Saturday. C) Only 10 percent of consumers say they visit websites from their place of work. D) Most people buy online when they are sad or depressed. E) Favorite websites for workday shopping and buying feature shoes or work attire.
183) Some________Blank percent of online consumers say they visit websites from their place of work, which partially accounts for the sales level during the workweek. A) 15 B) 20 C) 30 D) 40 E) 50
184) Which statement regarding when and where online consumers shop and buy is most accurate?
Version 1
68
A) Eighty percent of online sales occur on the weekends. B) The busiest shopping day is Saturday. C) Only 10 percent of consumers say they visit websites from their place of work. D) Favorite websites for workday shopping and buying include those featuring event tickets, travel, and flowers and gifts. E) Most people buy online when they are sad or depressed.
185)
The most preferred device used for online shopping and buying is A) a smartphone. B) a tablet. C) a store kiosk. D) a laptop or desktop computer. E) The majority of people have no preference for device.
186)
The use of social networks for browsing and buying is called A) cross-channel shopping. B) marketspace buying. C) Facebook-driven shopping. D) social commerce. E) sociodigital buying.
187) The payment of a fee to have products and services delivered on a recurring schedule is called
Version 1
69
A) cross-channel shopping. B) marketspace delivery. C) Facebook-driven shopping. D) subscription commerce. E) sociodigital buying.
188) Convenience, lower prices, and greater personalization have fueled the popularity of________Blank provided by companies like Blue Apron and Dollar Shave Club. A) cross-channel shopping B) marketspace delivery C) social shopping D) subscription commerce E) sociodigital buying
189) The online consumer who shops online but buys offline, or shops offline but buys online is referred to as a________Blank consumer. A) multi-retail B) cross-channel C) marketspace D) clicks and bricks E) Web 3.0
190)
A cross-channel consumer is
Version 1
70
A) an online consumer who shops online but buys offline, or shops offline but buys online. B) the online consumer who purchases a product online and then returns it to a retail store for store credit. C) a consumer who e-mails or forwards a copy of a competitor’s coupon to another firm in hopes that it will meet or beat the offer. D) a consumer from one country who makes online purchases from a company in a different country. E) when a consumer visits a retail store to inspect merchandise, but then purchases the merchandise.
191) ________Blank is the practice of examining products in a store and then buying them online for a cheaper price. A) Push retailing B) Multichannel searching C) Intertype retailing D) Showrooming E) Intratype retailing
192)
Showrooming refers to
A) areas in retail stores where point-of-purchase displays are used to show goods for sale. B) an arrangement whereby a firm reaches different buyers by employing two or more different retail layouts and atmospherics for the same basic product. C) competition among retail firms in different types of businesses but which sell the same product. D) retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television home shopping, and online retailing. E) the practice of examining products in a store and then buying them online for a cheaper price.
Version 1
71
193)
All of these are motivations for showroomingexcept which? A) looking for online promotions or deals B) evaluating customer service in retail outlets C) obtaining product information, like features and benefits D) checking product reviews and ratings on social media E) seeking lower prices
194) About________Blank percent of U.S. online shoppers have engaged in showrooming for one or more products. A) 10 B) 25 C) 33 D) 40 E) 75
195)
Which of these is a popular product category for showrooming? A) beauty products B) music C) jewelry D) consumer electronics E) furniture
196) ________Blank is the practice of examining products online and then buying them in a store.
Version 1
72
A) Multichannel buying B) Pull marketing C) Intertype retailing D) Webrooming E) Social commerce
197) Cross-channel consumers who are motivated by price, avoiding shipping costs, immediate possession of a product, and easier returns may participate in A) push marketing. B) webrooming. C) showrooming. D) social commerce. E) multichannel retailing.
198)
All of these are motivations for webroomingexcept which? A) obtaining a lower price B) gaining immediate possession of a product C) finding a larger selection D) avoiding shipping costs E) expecting easier returns
199) The most common cross-channel shopping and buying path is to browse one or more websites and then
Version 1
73
A) negotiate among competitors for the lowest price. B) find the item on an auction site such as eBay. C) contact the manufacturer directly. D) click on the shopping cart icon to purchase the product or service. E) purchase the item at a retail store.
200) The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online is referred to as A) multichannel marketing. B) strategic channel alliances. C) dual-track reselling. D) dual distribution. E) retail segmentation.
201)
Multichannel marketing refers to
A) selling the same product to the same customers under two distinct brand names. B) selling the same product to the same customers at two different price points through two different distributors. C) the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online. D) the use of bots to find the best prices and make purchases from multiple websites simultaneously. E) the blending of nonelectronic communication and delivery channels to counteract the power of online buying.
Version 1
74
202) Office Depot promises an exceptional online shopping experience, free delivery for purchases over $35, buy-online-collect in store, and a wide range of products available for purchase in the store. Office Depot is following a(n)________Blank strategy. A) cross-functional B) interlocking marketing C) multichannel marketing D) dual distribution E) market penetration
203)
Which of these is an important step in effectively implementing multichannel marketing?
A) Establish subbrands for catalog retailers and direct selling channels. B) Immediately appoint a channel captain to avoid channel conflict. C) Minimize the number of channels to avoid cannibalizing sales from stores. D) Create a website that will engage visitors with interactive experiences that involve games, contests, and quizzes. E) Start by documenting cross-channel consumer behavior with a customer journey map.
204) Developing a consumer journey map, including uncontrollable touchpoints, is a useful first step in implementing A) cross-functional teams. B) social commerce. C) multichannel marketing. D) dual distribution. E) market penetration.
205)
Essential in implementing multichannel marketing is to
Version 1
75
A) provide access to human service representatives to assist in making purchases, regardless of channel. B) encourage shoppers to research online but then buy in store. C) provide information on how items can be used and where they can be purchased primarily online, where most searches start. D) convey a consistent customer experience through consumer touchpoints and messages across channels. E) share information on customer preferences and buying habits with competitors.
206) The Clinique Division of Estée Lauder, Inc., markets cosmetics and built its business in traditional department stores. Clinique now reports 80 percent of current customers who visit its website later purchase a Clinique product at a department store. Clinique has become a________Blank marketer. A) social B) transactional C) multichannel D) transformational E) conversion
207)
Which step in implementing multichannel marketing is most challenging?
A) establishing subbrands for catalog retailers and direct selling channels B) employing communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers C) monitoring and measuring performance in various channels D) creating a website that will engage visitors with interactive experiences E) documenting cross-channel consumer behavior with a customer journey map
Version 1
76
208) The task of assigning the proportional credit to each channel and consumer touchpoint across all online and offline channels for a desired consumer action is extremely complex. The practice and techniques used to credit or value a particular channel and consumer touchpoint is referred to as A) channel valuation. B) service appropriation. C) marketing attribution. D) multichannel accreditation. E) touchpoint compensation.
209) Despite challenges, the popularity of multichannel marketing is apparent in its growing impact on online retail sales, and________Blank of the top 10 U.S. companies engaged in online retail sales currently practice it. A) 4 B) 5 C) 6 D) 7 E) 9
210) In the development of the Poshmark app, founder Manish Chandra wanted the experiences to be like________Blank rather than the search-to-buy experience shoppers get on Amazon. A) window shopping B) talking to a friend C) social responsibility D) making a to-do list E) ordering in a restaurant
Version 1
77
211) What makes Poshmark different from other online clothing consignment retailers like the RealReal and thredUp? A) Poshmark sells women’s items only. B) The RealReal and thredUp market to cross-channel consumers. C) Poshmark uses behavioral targeting to identify which consumers to engage. D) Poshmark has physical stores and warehouses. E) Poshmark is a peer-to-peer shopping app.
212) Generation Y and Generation Z consumers engage most actively in used clothing sold on Poshmark primarily because of A) lack of access to technology. B) environmental and economic concerns. C) time constraints. D) lack of physical space. E) social and family pressure.
213) Poshmark’s guidelines to sellers encourage them to take creative photos and utilize the high-quality cameras now available on many smartphones in order to ensure the quality of the________Blank and________Blank design elements of its website. A) context; content B) communication; context C) commerce; customization D) communication; connection E) content; community
214) Poshmark’s website includes the________Blank design element by providing links to Facebook, Twitter, Pinterest, and Instagram.
Version 1
78
A) customization B) context C) commerce D) communication E) connection
215) Poshmark includes the website design element of________Blank by hosting virtual shopping parties called Posh Parties that users can attend with friends. A) customization B) context C) commerce D) communication E) community
216)
What is the digital marketspace?
217)
Explain the four ways the marketspace creates value for consumers.
218) The greatest marketspace opportunity for marketers lies in its potential for creating form utility. Explain how form utility contributes to customer value through communication, customization, and choice.
Version 1
79
219) What two unique capabilities of digital technology promote and sustain customer relationships?
220) Define the customer experience from an interactive marketing perspective. List the seven website design elements that companies use to produce a customer experience. Which two of these design elements provide a platform for the other five?
221)
How do online consumers differ from the general population?
222) There are several product characteristics that dominate online consumer buying today and for the foreseeable future. List them and give an example of each.
Version 1
80
223) List the six reasons consumers shop and buy online. Name a reason some may be hesitant.
224) Harley-Davidson is well known for the HOG or Harley Owners Group that it has developed. Harley-Davidson encourages owners to visit its website to find out about events, races, and membership chapters. The website visitor can play motorcycle-inspired games, plan motorcycle trips, and even investigate how to finance a bike. Visitors can view the entire line of bikes as well as find out where the closest dealer is located. You can contact Harley-Davidson by clicking on the “Contact Us” tab. The visitor can either create a wish list of Harley products and accessories or view another’s list. Using the six reasons consumers shop and buy online, explain how Harley-Davidson uses the Internet to stay connected with its target market.
225)
Define and explain the importance of the eight-second rule.
226)
Define spam and viral marketing.
227) Explain why a majority of online consumers are concerned about the privacy and security issues related to cookies. What is the difference between first-party and third-party cookies? Version 1
81
228) When John subscribed to a financial news publication online, the company told him that as a service it would be creating a cookie. Explain what the online publication did.
229) Explain what online companies are doing to address consumer worries about privacy and security when shopping online.
230)
Define a cross-channel consumer, and explain why they are important to marketers.
231)
What are the three steps in implementing multichannel marketing?
232)
Describe why measuring channel performance in multichannel marketing is so difficult.
Version 1
82
Version 1
83
Answer Key Test name: Chap 17_16e_Kerin 1) B 2) A 3) C 4) E 5) A 6) C 7) E 8) D 9) E 10) B 11) E 12) E 13) E 14) C 15) C 16) A 17) B 18) E 19) D 20) C 21) B 22) B 23) D 24) E 25) C 26) D Version 1
84
27) A 28) D 29) B 30) C 31) B 32) C 33) C 34) D 35) E 36) A 37) B 38) A 39) B 40) E 41) C 42) A 43) C 44) B 45) D 46) E 47) D 48) A 49) B 50) C 51) E 52) B 53) D 54) C 55) D 56) E Version 1
85
57) A 58) B 59) A 60) D 61) B 62) B 63) B 64) B 65) B 66) C 67) B 68) C 69) A 70) B 71) A 72) A 73) D 74) E 75) B 76) A 77) E 78) D 79) B 80) C 81) D 82) B 83) E 84) E 85) B 86) D Version 1
86
87) B 88) D 89) C 90) C 91) C 92) A 93) E 94) D 95) A 96) C 97) B 98) C 99) E 100) A 101) D 102) D 103) B 104) A 105) B 106) C 107) B 108) D 109) B 110) C 111) E 112) E 113) D 114) A 115) B 116) D Version 1
87
117) E 118) C 119) D 120) C 121) A 122) E 123) C 124) B 125) C 126) E 127) C 128) A 129) A 130) D 131) E 132) B 133) C 134) B 135) A 136) B 137) E 138) C 139) E 140) A 141) C 142) B 143) C 144) A 145) D 146) E Version 1
88
147) B 148) C 149) A 150) D 151) C 152) A 153) A 154) E 155) E 156) E 157) C 158) A 159) C 160) D 161) E 162) C 163) C 164) C 165) C 166) E 167) D 168) D 169) B 170) A 171) C 172) D 173) E 174) C 175) B 176) A Version 1
89
177) D 178) B 179) E 180) B 181) C 182) A 183) C 184) D 185) D 186) D 187) D 188) D 189) B 190) A 191) D 192) E 193) B 194) E 195) D 196) D 197) B 198) C 199) E 200) A 201) C 202) C 203) E 204) C 205) D 206) C Version 1
90
207) C 208) C 209) D 210) A 211) E 212) B 213) A 214) E 215) E
Version 1
91
CHAPTER 18 1)
Taco Bell held its largest ever taco giveaway to celebrate A) a reduction in bullying in schools. B) the introduction of plant-based proteins at its restaurants. C) its new breakfast items that feature egg taco options. D) the lunar phase when the half-moon resembles a taco. E) its recent collaboration with Adidas.
2)
All of these were Taco Bell special promotionsexcept which? A) $600 wedding packages available in Las Vegas B) a contest to win an Xbox with the Taco Bell “ring” sound C) taco-themed rooms at a Palm Springs hotel D) partnership with Impossible for free samples E) taco giveaway for stolen bases during the World Series
3) The________Blank element of the marketing mix consists of communication tools, including advertising, personal selling, sales promotion, public relations, and direct marketing. A) product B) price C) place D) promotion E) advertising
4) The________Blank includes advertising, personal selling, sales promotion, public relations, and direct marketing.
Version 1
1
A) promotional mix B) promotion channel C) communication message D) marketing matrix E) media mix
5) Advertising, personal selling, sales promotion, public relations, and direct marketing are marketing communications alternatives that make up a firm’s A) cooperative advertising. B) marketing mix. C) media strategy. D) promotional mix. E) communication source.
6)
The promotional mix includes which of these? A) segmentation B) public relations C) merchandising D) branding E) people
7) Promotion represents one element in the marketing mix. Promotion consists of communication tools, including advertising, direct marketing, sales promotion, public relations, and
Version 1
2
A) channels. B) merchandising. C) personal selling. D) innovation. E) branding.
8)
The promotional mix refers to the
A) three underlying appeals used that make promotions effective: sex appeal, humor appeal, and fear appeal. B) combination of both paid and nonpaid marketing tools used to promote product interest. C) set of promotional tools designed to motivate prospective buyers to purchase products and services: awareness, interest, evaluation, trial, and adoption. D) composition of the objectives of the promotion: to inform, to persuade, to remind, and to phase out. E) combination of one or more communication tools used to inform prospective buyers about the benefits of the product, persuade them to try it, and remind them later about the benefits they enjoyed by using the product.
9) The combination of one or more communication tools used to inform prospective buyers about the benefits of the product, persuade them to try it, and remind them later about the benefits they enjoyed by using the product is referred to as the A) promotion channel. B) channel of communication. C) marketing matrix. D) promotional mix. E) media mix.
Version 1
3
10) The________Blank is used in part used to inform prospective buyers about the benefits of the product. A) promotional mix B) promotion channel C) communication channel D) marketing mix E) media mix
11)
A primary function of the promotional mix is to A) explain how to use a product. B) persuade consumers to try a product. C) inform customers of complementary offerings. D) inform customers of pricing changes. E) point out flaws in competitors’ products.
12)
In a marketing context, the acronym IMC refers to A) interactive media convergence. B) internal marketing communications. C) integrated marketing collaboration. D) integrated marketing communications. E) international marketing convergence.
13) The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences is referred to as
Version 1
4
A) the media mix. B) the marketing matrix. C) the promotional blend. D) marketing by objectives. E) integrated marketing communications.
14) Integrated marketing communications (IMC) programs coordinate a variety of promotion alternatives to provide a A) promotional channel. B) unique statement of purpose. C) consistent message across audiences. D) media mix useful to all types of companies. E) marketing matrix.
15) By taking the consumer journey and consumer expectations into consideration, integrated marketing communications (IMC) becomes a key element in a company’s________Blank strategy. A) generic business B) retail life cycle C) market segmentation D) sustainable development E) customer experience management
16) To promote its theme parks to groups, Disney uses advertising, direct marketing, social media, and sales promotions with other companies such as McDonald’s. In other words, Disney uses
Version 1
5
A) the media mix. B) the marketing matrix. C) the promotional blend. D) marketing by objectives. E) integrated marketing communications.
17) Disney’s use of an integrated marketing communications program (IMC) to promote group travel to its theme parks is apparent because A) its strategy includes using several types of promotional activities that deliver a consistent message. B) it does not want to reach any member of its target audience more than once to conserve resources. C) IMC is less expensive than other forms of promotion, such as public service announcements. D) if it didn’t, Disney would have to use indirect personal selling. E) it is more concerned about frequency of attendance than geographic reach.
18) Allegra is an antihistamine. To create brand awareness, Allegra’s manufacturer is offering people who request information about the product a seat cushion to use at their favorite sporting event. Its television ad shows a woman halfheartedly watching a sporting event. The voiceover asks if she is bored or congested. In the next scene, the person is having a great time and is decongested after taking Allegra. This use of the same promotional theme throughout a product’s marketing campaign is an example of how marketers use A) the retailing mix. B) integrated marketing communications. C) the branding mix. D) coordinated channels of communication. E) marketing by objectives.
Version 1
6
19) The process of conveying a message to others that requires six elements—a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding— is referred to as A) exchange. B) dialogue. C) communication. D) advertising. E) feedback.
20) Communication is the process of conveying a message to others and it requires six elements: a(n)________Blank, a message, a channel of communication, a receiver, and the processes of encoding and decoding. A) concept B) brand C) slogan D) source E) offer
21) Communication is the process of conveying a message to others and it requires six elements, including which of these? A) a channel of communication B) a signal C) a translation D) a slogan E) an offer
Version 1
7
22) Communication is the process of conveying a message to others and it requires six elements. Which process is one of these elements? A) identifying B) rationalizing C) targeting D) branding E) encoding
23) Figure 18-1 depicts the communication process, which consists of 10 key elements (Boxes A through J). The position labeled Box A is referred to as
A) the message. B) the receiver. C) the source. D) the fields of experience. E) feedback.
Version 1
8
24) Figure 18-1 depicts the communication process, which consists of 10 key elements (Boxes A through J). The position labeled B is referred to as
A) the message. B) the receiver. C) the source. D) encoding. E) feedback.
Version 1
9
25) Figure 18-1 depicts the communication process, which consists of 10 key elements (Boxes A through J). The position labeled C is referred to as
A) the message. B) the receiver. C) the fields of experience. D) encoding. E) feedback.
Version 1
10
26) Figure 18-1 depicts the communication process, which consists of 10 key elements (Boxes A through J). The position labeled D is referred to as
A) decoding. B) the receiver. C) the fields of experience. D) encoding. E) feedback.
Version 1
11
27) Figure 18-1 depicts the communication process, which consists of 10 key elements (Boxes A through J). The position labeled E is referred to as
A) decoding. B) the receiver. C) the fields of experience. D) response. E) feedback.
Version 1
12
28) Figure 18-1 depicts the communication process, which consists of 10 key elements (Boxes A through J). The position labeled F is referred to as
A) decoding. B) the receiver. C) the fields of experience. D) response. E) feedback.
Version 1
13
29) Figure 18-1 depicts the communication process, which consists of 10 key elements (Boxes A through J). The position labeled G is referred to as
A) decoding. B) noise. C) the fields of experience. D) response. E) feedback.
Version 1
14
30) Figure 18-1 depicts the communication process, which consists of 10 key elements (Boxes A through J). The positions labeled H and I are referred to as
A) encoding and decoding. B) the message and noise. C) the fields of experience and noise. D) feedback and response. E) the message and feedback.
Version 1
15
31) Figure 18-1 depicts the communication process, which consists of 10 key elements (Boxes A through J). The position labeled J is referred to as
A) decoding. B) the message. C) the fields of experience. D) noise. E) the feedback loop.
32)
In a marketing context, a source refers to
A) any paid form of advertising. B) consumers who read, hear, or see the message during the communications process. C) a company or person who has information to convey during the communications process. D) people with similar understanding and knowledge who are willing to share that knowledge with others. E) a group of individuals who are willing to receive information from others.
Version 1
16
33) A company or person who has information to convey during the communication process is referred to as a(n) A) encryptor. B) message carrier. C) channel. D) receiver. E) source.
34) Procter & Gamble created an advertisement for its High Endurance men’s antiperspirant. In terms of the communication process, the________Blank of the information in the product’s advertisement is Procter & Gamble, its manufacturer. A) receiver B) source C) essence D) decoder E) communication channel
35)
In a marketing communication context, the message refers to
A) product information regarding benefits and usage from receiver to the sender outside the channel of communication. B) the slogan or tagline of a specific product. C) proprietary information linking a specific product to a promotional campaign. D) the information sent by a source to a receiver during the communication process. E) a television or radio commercial from the buyer to the seller.
36) The information sent by a source to a receiver during the communication process is referred to as
Version 1
17
A) an advertisement. B) publicity. C) a message. D) feedback. E) a missive.
37) Procter & Gamble Co. created an advertisement for its Old Spice Krakengard Wild antiperspirant. In terms of the communication process, the________Blank in the ad informed prospective customers that the antiperspirant offered more protection than other brands. A) lesson B) message C) meme D) source E) feedback
38)
A channel of communication refers to
A) the selection of either paid or nonpaid forms of information dissemination. B) a similar understanding and knowledge that a sender and receiver apply to a message. C) an open-ended dialogue between the marketing department and the firm responsible for developing the IMC program. D) a social network-based forum that allows customers to communicate their likes, dislikes, suggestions, and concerns to an organization 24 hours a day, 365 days a year. E) the means (salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process.
39) A message is conveyed by means of a________Blank such as a salesperson, advertising media, or public relations tools.
Version 1
18
A) distribution network B) field of experience C) channel of communication D) direct feedback loop E) vehicle
40) In a marketing context, all of these are channels of communication used to convey a message from a source to a receiverexcept which? A) magazine B) news release C) salesperson D) feedback E) TV
41) L’Oréal created an advertisement for its Visible Lift makeup.Glamour magazine, in which the ad for the L’Oréal Visible Lift makeup appeared, is an example of A) a message. B) noise. C) a feedback loop. D) a source. E) a channel of communication.
42)
The billboards that Sony uses to advertise its PlayStation 5 video game console are
Version 1
19
A) channels of communication. B) messages. C) noise. D) feedback loops. E) sources.
43) Consumers who read, hear, or see the message sent by a source during the marketing communication process are referred to as A) decoders. B) the target market. C) receivers. D) sources. E) encoders.
44)
In a marketing context, receivers are
A) only those consumers who read, hear, or see a message about a product or service and then choose to buy it. B) consumers who read, hear, or see the message sent by a source during the communication process. C) a firm that obtains a basic message or theme from its advertising agency and translates that vision into a usable IMC campaign. D) promotional firms that select the best channels through which to convey advertising messages. E) customers who read, hear, or see the message sent by a source and interpret it as intended rather than fitting it to their individual beliefs.
45) In the communication process, the viewers of a NASCAR race who see a TV commercial advertising P&G’s Old Spice High Endurance antiperspirant are called
Version 1
20
A) decoders. B) the target market. C) wasted coverage. D) receivers. E) encoders.
46) The process of a sender transforming an idea into a set of symbols during the communication process is referred to as A) decoding. B) encrypting. C) message formation. D) advertising. E) encoding.
47) In a brainstorming session for a new drug to lower cholesterol, the members of the marketing department agreed the benefits of the new drug could best be promoted by comparing the drug to those currently on the market. In terms of the communication process, the transformation of this idea into an ad campaign is an example of A) noise. B) receiving. C) encoding. D) decoding. E) messaging.
48) When Procter & Gamble bought the Old Spice brand in 1990, it planned to transform the old, stagnating brand into a men’s “personal-care powerhouse.” The ads that P&G developed shed the older-man image and now appeal to 18- to 34-year-olds. In terms of the communication process, P&G had to________Blank its idea to deliver the message to the new target market.
Version 1
21
A) respond B) discuss C) decode D) encode E) feedback
49)
Decoding refers to
A) receiving a message within a common field of experience and breaking down that information into small usable units to better interpret its meaning. B) having a receiver take a set of symbols, the message, and transform them into an idea. C) receiving a message that requires integration of new information to fully understand the intended meaning. D) having the sender transform an abstract idea into a set of symbols that can be universally understood. E) having a sender take a set of symbols, the message, and transform them into an idea.
50) The process of having the receiver take a set of symbols, the message, and transform them into an idea during the communication process is referred to as A) decoding. B) encoding. C) integrating. D) back translation. E) transformation.
51) After watching a 30-second commercial from Huntington Bank about its services, Mariah was interested in getting funds from her paycheck up to two days early and was considering getting an account. In terms of the communication process, Mariah engaged in the process of
Version 1
22
A) integrating. B) sending. C) decoding. D) messaging. E) encoding.
52) After watching the 30-minute infomercial on Oxy-Clean, Sarah was convinced that the cleaning product would remove the grape juice stain from her white carpet. In terms of the communication process, Sarah was________Blank the message from Oxy-Clean. A) integrating B) transforming C) translating D) decoding E) encoding
53)
Errors in communication can occur in several ways, including which of these?
A) A properly encoded message is sent through the wrong channel and never makes it to the receiver. B) In an attempt to be creative, the encoder creates a message with too much noise. C) The communications channel is not properly funded. D) The message is considered too ordinary because there is too broad a field of experience. E) There is no interest on the part of the receiver because the product itself is inadequate.
54)
Which message represents a potential communication error?
Version 1
23
A) “Once in-a-lifetime offer!” B) “Buy one, get one free!” C) “Can’t read? Let us help. Free literacy classes.” D) “Great part-time job opportunity; transportation required.” E) “Two bottled waters for $3.00 or $1.75 each.”
55) A similar understanding and knowledge that the sender and receiver apply to the message so that it can be communicated effectively during the communication process is referred to as A) common ground. B) field of experience. C) precise abstraction. D) heuristics. E) back translation.
56)
Field of experience refers to
A) the unique set of terms, expressions, or jargon that carries a specific meaning within a specific field (i.e., the medical profession, legal profession, etc.). B) the designation given to different elements in the communications channel based upon their specific area of expertise (i.e., advertising, publicity, etc.). C) a similar understanding and knowledge between the manufacturer or service provider and department or firm handling its IMC campaign to eliminate incorrect decoding of the sender’s message. D) a mutually shared understanding and knowledge between the manufacturer or service provider and department or firm handling its IMC campaign to eliminate incorrect encoding of the sender’s message. E) a similar understanding and knowledge that the sender and receiver apply to the message so that it can be communicated effectively during the communication process.
Version 1
24
57) For a message to be communicated effectively, the sender and receiver must have a mutually shared field of experience, which means a similar________Blank they apply to the message. A) positioning B) national, regional, or ethnic origin C) understanding and knowledge D) feeling E) set of psychographics
58) When an English speaker reads the KFC slogan “Finger-lickin’ good!” he or she interprets this as an indication that the food tastes very good. When this slogan was translated into Chinese, the Chinese speaker interprets the same words as “eat your fingers off!” The different interpretations of the ad are primarily due to differing A) product consumption behaviors. B) fields of experience. C) channels of communication. D) educational systems. E) advertising appeals.
59) Cardiac Science is a California-based company that makes defibrillators, heart monitors, and other medical equipment. It is preparing to market its products in Greece. The company’s marketing manager for Greece wants to avoid any problems that might arise in marketing to a Greek target audience. Which of these is the best example of a communications problem that might arise because her field of experience is different from that of her audience?
Version 1
25
A) The name of the product, when translated into Greek, has an unintended meaning. B) Her target audience is strongly ethnocentric. C) The trade journals in which the company wants to run its ads do not accept ads from foreign companies. D) A Greek bureaucrat who is responsible for determining that the Cardiac Science products meet national standards has taken a personal dislike to her. E) The ads are in trade journals that Greek hospital administrators don’t read.
60) A marketing professor wanted to do everything possible to ensure that her students understood her lectures. Accordingly, she used examples of marketing activities with which most students were familiar. For example, the professor discussed the marketing exchanges between students and grocers, college bookstores, convenience stores, and clothiers. The examples used by the professor were her attempt to________Blank her message to encourage better understanding on the part of her students. A) use feedback within B) create noise in C) effectively decode D) identify a mutually shared field of experience for E) back translate
61)
A________Blank consists of a response and feedback. A) feedback loop B) consequence C) source reaction D) primary cause and effect E) concept effect
Version 1
26
62) In the feedback loop, the impact the message has on the receiver’s knowledge, attitude, or behaviors during the communications process is referred to as A) feedback. B) a field of experience. C) noise. D) a response. E) a hierarchy of effects.
63)
In a feedback loop, a response is the
A) number of times a consumer must hear a message before it can be accurately decoded. B) impact the message had on the receiver’s knowledge, attitude, or behaviors during the communications process. C) positive or negative feedback that a consumer expresses immediately after exposure to a company’s message. D) impact, either positive or negative, that occurs when one consumer interprets a firm’s message through word of mouth to another potential consumer using his or her own words. E) length of time required for a typical customer to associate a specific slogan, theme, melody, or logo with a specific product brand.
64) Ann recently saw an ad for Claritin, a medicine perfect for counteracting her allergy symptoms. She immediately went to the store to purchase the product. In terms of the communication process, the Claritin ad resulted in a(n) A) stimulus. B) exposure. C) field of experience. D) subconscious impulse. E) response.
Version 1
27
65) Araceli saw an ad promoting Vermont as a tourist destination and a great place to live. The ad contained a postage-paid reply card that could be used to request more information. In terms of the communication process, mailing in the postcard with a request for further information is A) a stimulus. B) a field of experience. C) a response. D) noise. E) a feedback loop.
66) After a receiver responds to a message, the sender’s interpretation of the response indicating whether the message was decoded and understood as intended during the communications process is referred to as A) encoding. B) receiver response. C) feedback. D) noise. E) message loop.
67)
In the feedback loop of the communication process, feedback refers to
Version 1
28
A) the sender’s interpretation of the response that indicates whether the message was decoded and understood as intended. B) the impact the message had on the receiver’s knowledge, attitude, or behaviors during the communications process. C) a mutually shared understanding and knowledge the sender and receiver apply to a message so that it can be communicated effectively during the communication process in the message loop. D) any unsolicited response from consumers or potential consumers regarding a company’s message. E) extraneous factors that can work against effective communication by distorting a message or the feedback received.
68) ________Blank is advisable for all marketing communications to ensure that messages will be decoded properly. A) Use of an observable receiver B) Customization C) Elimination of the channel D) Pretesting E) Omitting the feedback loop
69)
In the communication process, noise refers to
A) any unsolicited response from consumers or potential consumers regarding a company’s message. B) any communication with consumers who are not in the target audience. C) extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process. D) the use of colors, words, sounds, or images that make an otherwise simple message more complex. E) a unique set of terms, expressions, or jargon that carries a specific meaning within a specific field (i.e., the medical profession, legal profession, etc.).
Version 1
29
70) In the communication process, printing mistakes that affect the meaning of a newspaper advertisement, or using words or pictures that fail to communicate the message clearly, are referred to as A) noise. B) clutter. C) disruptions. D) distortions. E) misrepresentations.
71) Mary’s Cookies wanted to send a postcard to her customer list with a coupon for a dozen cookies for $2.99. An error resulted in the printed price on the coupon being $29.99. Consequently, no customers came in to buy cookies using the coupon. The most likely factor working against effective communication between Mary and her target market was A) feedback disruption. B) noise. C) a decoding error. D) a communication barrier. E) message interference.
72) The marketing manager from a heavy-equipment manufacturer in Dallas, Texas, was attending an international trade show in Japan. There were many prospective customers from different countries who seemed interested in the firm’s product. However, they had difficulty following the manager’s explanations of product features due to his heavy Texas drawl. In this case, the accent would be considered
Version 1
30
A) an encoding error. B) a decoding error. C) culture shock. D) noise. E) distortion.
73) Each year, advertisers spend millions of dollars during the U.S. Super Bowl football game broadcast. These marketers hope to reach the millions of sports enthusiasts tuned into the NFL’s greatest spectacle. Unfortunately, during the advertisements, many viewers might dash to the kitchen for a sandwich and a soda and do not see or hear the persuasive promotional messages of the advertisers. The desire for food and drink is an example of________Blank, which inhibits effective communication. A) distraction B) diversion C) ineffective encoding D) information overload E) noise
Version 1
31
74) To communicate with consumers, a company can use one or more of five promotion alternatives. In Figure 18-2, the promotional element labeled Box A represents
A) advertising. B) personal selling. C) public relations. D) sales promotion. E) direct marketing.
Version 1
32
75) To communicate with consumers, a company can use one or more of five promotion alternatives. In Figure 18-2, the promotional element labeled B represents
A) advertising. B) personal selling. C) public relations. D) sales promotion. E) direct marketing.
Version 1
33
76) To communicate with consumers, a company can use one or more of five promotion alternatives. In Figure 18-2, the promotional element labeled C represents
A) advertising. B) personal selling. C) public relations. D) sales promotion. E) direct marketing.
Version 1
34
77) To communicate with consumers, a company can use one or more of five promotion alternatives. In Figure 18-2, the promotional element labeled D represents
A) advertising. B) personal selling. C) public relations. D) sales promotion. E) direct marketing.
Version 1
35
78) To communicate with consumers, a company can use one or more of five promotion alternatives. In Figure 18-2, the promotional element labeled E represents
A) advertising. B) personal selling. C) public relations. D) sales promotion. E) direct marketing.
79) Advertising, sales promotion, and public relations are often said to use________Blank because they are used with groups of prospective buyers.
Version 1
36
A) cooperative selling B) mass selling C) customized selling D) collection selling E) paid selling
80)
Which of these would beleast likely to be used for mass selling? A) advertising B) public relations C) sales promotion D) publicity E) personal selling
81)
In a promotional sense, customized interaction is exemplified by
A) the creation of unique products based upon the needs and wants of individual consumers. B) the translation of a company’s message into multiple languages for use in advertising in different countries or regions. C) personal selling between a seller and a prospective buyer that can include face-to-face, telephone, and interactive electronic communication. D) the creation of different promotional campaigns based on gender, age, or ethnicity. E) the use of different images (such as the covers ofSports Illustrated) to reach different product groupings.
82)
Which type of promotion uses customized interaction?
Version 1
37
A) advertising B) direct marketing C) public relations D) sales promotion E) publicity
83)
Advertising refers to
A) any nonpersonal, indirectly paid presentation of an organization, service, or product. B) a short-term inducement of value offered to arouse interest in buying a product or service. C) methods used to identify a target market for a particular product or service. D) any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. E) any unpaid form of personal presentation of products and services.
84) A paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor is referred to as A) sales promotion. B) publicity. C) advertising. D) direct marketing. E) mass communication.
85)
What is the nature of the “paid” aspect of advertising?
Version 1
38
A) Fees are paid for space or time in the medium. B) Fees are paid to salespeople as either salaries or commissions. C) Fees are paid to creative arts contributors, but there is no direct payment to media. D) There is a wide range of fees paid depending upon the promotion selected. E) The primary costs are associated with data transmission for telephone or the Internet.
86)
Which statement about advertising is most accurate? A) Advertising can communicate specific product benefits to prospective buyers. B) Advertising offers limited control regarding when and where an advertisement will
appear. C) A key advantage of advertising is its ability to use customized interactions. D) Advertising can be a very effective attention-getter, especially for new products, but has little impact for repeat purchases. E) Advertising is one of the least costly forms of promotion because it reaches a mass market.
87)
Which statement about advertising is most accurate?
A) Advertisers have the highest credibility of any element in the promotional mix. B) A key advantage of advertising is its use of customized interactions. C) Advertisers have very limited control over what they can say due to FCC regulations. D) Advertising is the least costly form of promotion because ads go through significant pretesting. E) Through advertising, a company can control what it says and, to some extent, to whom the message is sent.
88)
Which of these is a strength of advertising?
Version 1
39
A) Advertising provides immediate feedback. B) Advertising is very inexpensive. C) Advertising can create messages quickly. D) Advertising is an efficient means for reaching large numbers of people. E) Advertising is often the most credible source of information for consumers.
89)
Which of these is a weakness of advertising? A) It entails extremely high expense per exposure. B) It is difficult to get media cooperation. C) It entails high absolute costs. D) It is easily duplicated. E) It can easily lead to promotion wars.
90)
Which statement describes a key difference between advertising and public relations?
A) Public relations is more expensive on a cost-per-contact basis than advertising. B) Public relations is used during a crisis, while advertising is usually done when business is successful. C) Advertising is usually directly paid, while public relations is usually indirectly paid. D) Advertising provides an immediate feedback loop, while public relations does not. E) Public relations always has a much greater reach than advertising.
91) When Macy’s places a banner ad on a lifestyle website with a link to its website and a coupon code for its President’s Day sale, it is using which element of the promotional mix?
Version 1
40
A) advertising B) automatic vending C) publicity D) personal selling E) direct marketing
92) New Balance recently spent $13 million for time on television and space in selected magazines to promote its athletic shoes. What form of marketing communication did it use? A) public relations B) personal selling C) publicity D) sales promotion E) advertising
93) The two-way flow of communication between a buyer and a seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision is referred to as A) sales promotion. B) personal selling. C) direct selling. D) advertising. E) public relations.
94)
Personal selling is
Version 1
41
A) a customer-directed flow of communications, often in a face-to-face encounter, designed to promote a product with the purpose of making a sale. B) an individualized communications program specifically designed for a single customer because the item being sold is unique to that person. C) a mass selling approach that has been tailored to meet the unique needs of a target market based on age, gender, ethnicity, or occupation. D) the two-way flow of communication between a buyer and a seller, often in a face-toface encounter, designed to influence a person’s or group’s purchase decision. E) any spoken (rather than visual or print) attempt to promote a product for the purpose of making a sale.
95)
Which of these is a strength of personal selling? A) Personal selling can be very persuasive. B) Personal selling has low seller involvement. C) Personal selling can prepare messages quickly. D) Personal selling is an efficient means for reaching large numbers of people. E) Personal selling is often the most credible source in the consumer’s mind.
96)
Which of these is a weakness of personal selling? A) It can be difficult to receive good feedback with personal selling. B) It can be difficult to get media cooperation. C) It is extremely expensive per exposure. D) Personal selling can be easily duplicated. E) Personal selling can easily lead to promotion wars.
97)
Communication with consumers who are not in the target audience is referred to as
Version 1
42
A) excess coverage. B) wasted coverage. C) exhaustive coverage. D) squandered coverage. E) dissipated coverage.
98)
Wasted coverage can be reduced by which of method of promotion? A) sales promotion B) public relations C) advertising D) public service announcements E) personal selling
99) Which promotional mix alternative has the advantage of allowing the seller to see and hear the potential buyer’s reaction to the message? A) advertising B) personal selling C) public relations D) sales promotion E) publicity
100)
Which of these is a disadvantage associated with personal selling?
Version 1
43
A) Presentations often provide little opportunity for consumer feedback. B) Personal selling permits too much wasted coverage. C) There may be inconsistency in the presentation of the message from one salesperson to another. D) A salesperson cannot control to whom a presentation is made. E) Personal selling is subject to extensive federal, state, and company regulation.
101)
Which of these promotional elements has the highest cost per contact or exposure? A) advertising B) personal selling C) sales promotion D) publicity E) public service announcements
102) When a furniture company employs designers that meet with customers to advise them on home decoration, the company is using A) advertising. B) personal selling. C) sales promotion. D) public relations. E) publicity.
103) When a representative for Pfizer calls on doctors to explain the benefits of its newest drug to treat type II diabetes, she is engaging in
Version 1
44
A) primary sales. B) sales promotion. C) public relations. D) personal selling. E) coercive marketing.
104) Businesses vary as to the amount of security they require or can afford to protect their digital network. A company that sells a complete line of firewalls, from a no-frills version to one that uses complex retinal scans, would most likely employ which promotional element to effectively promote its product to businesses? A) personal selling B) advertising C) sales promotion D) public relations E) social media
105) Lenox China Co. would like to get its annual Christmas ornament series into Macy’s department stores. Macy’s has a buyer in New York City who makes decisions on its giftware. Which promotional element would be most appropriate for Lenox to use to reach the Macy’s buyer? A) advertising B) sales promotion C) personal selling D) public relations E) advertising and public relations
Version 1
45
106) A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services is referred to as A) sales promotion. B) publicity. C) advertising. D) public relations. E) personal selling.
107)
Public relations is
A) a seller-directed flow of communication, often in a face-to-face encounter, designed to promote a product with the purpose of making a sale. B) an individualized communications program specifically designed for a single customer because the item being sold is unique to that person. C) a mass selling approach that has been tailored to meet the more select needs of a target market based on age, gender, ethnicity, or occupation. D) a form of communication that is intended to counteract any negative information or misinformation that has been instigated by competitors or disgruntled customers. E) a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.
108) Press conferences and social media posts are tools used by a firm’s________Blank department. A) advertising B) sales promotion C) direct marketing D) public relations E) personal selling
Version 1
46
109)
All of these are tools used by a firm’s public relations departmentexcept which? A) special events B) questionnaires C) lobbying efforts D) annual reports E) image management
110)
Publicity refers to
A) a nonpersonal, indirectly paid presentation of an organization, product, or service. B) a short-term inducement of value offered to arouse interest in buying a product or service. C) methods used to get a nonpersonal, directly paid presentation of a company or its products. D) a paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. E) a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.
111) A nonpersonal, indirectly paid presentation of an organization, product, or service that can take the form of a news story, editorial, or product announcement is referred to as A) direct sales. B) publicity. C) direct marketing. D) a public service announcement. E) personal selling.
Version 1
47
112)
Which statement describes a key difference between advertising and publicity? A) Publicity is more expensive on a cost-per-contact basis than advertising. B) Publicity is easily controlled by the user, while advertising is not. C) Advertising is usually directly paid, and publicity is indirectly paid. D) Advertising provides an immediate feedback loop, and publicity does not. E) Publicity results in less credibility with consumers than advertising does.
113) A feature on a local news program about a favorite restaurant’s struggle during COVID19 is an example of A) publicity. B) sales promotion. C) advertising. D) direct marketing. E) personal selling.
114)
Which of these is a strength of publicity? A) Publicity can receive immediate feedback. B) Publicity can provide the target audience with complex information. C) Publicity can prepare messages quickly. D) Publicity is an efficient means for reaching large numbers of people. E) Publicity often has the highest credibility in the consumer’s mind.
115)
Which of these is a weakness of publicity?
Version 1
48
A) Publicity has high absolute costs. B) Publicity is difficult to receive good feedback. C) Publicity is easily duplicated. D) There is a lack of control over publicity for the marketer. E) Publicity can easily lead to promotion wars.
116) ________Blank have grown dramatically and allow public discussions of almost any company activity, so many public relations departments now focus on facilitating and responding to them. A) Lobbying efforts B) Press releases C) Social media D) Negative ads E) Public service announcements
117) Although the lack of control means that it is rarely the main element of a promotional campaign,________Blank is an important part of most of them. A) publicity B) advertising C) personal selling D) sales promotion E) direct marketing
118)
Research indicates that publicity followed by advertising with the same message
Version 1
49
A) undermines the credibility of the first message and therefore lessens its effect. B) increases the positive response to the message. C) increases the retention of the message but only if it is delivered by a well-known spokesperson. D) is less effective than publicity followed by a sales promotion, such as a contest or product sample. E) is no more effective than either used alone.
119) The local radio station broadcast a story about a dry cleaner who requested coat donations. The company offered to clean the coats and deliver them to people in need. The various addresses of the dry cleaner chain were also broadcast so that donations could be dropped off. Since this featured business did not pay for this exposure, it benefited from A) advertising. B) direct marketing. C) personal selling. D) publicity. E) sales promotion.
120) A small film company is releasing a documentary about the efforts of a group dedicated to saving endangered species. However, the firm has few resources to promote the film. Which promotional element should it employ? A) Hire a salesperson to speak to environmental groups. B) Ask local radio and television stations to run a favorable story about the film. C) Advertise on billboards in each local market. D) Invite students to participate in a contest to win free tickets. E) Send postcards to all people within a 25-mile radius of a theater showing the movie.
Version 1
50
121) A small agrichemical laboratory with a very small marketing budget develops a seed that produces grass that grows two inches high and no higher. Which promotional element should it use to communicate its discovery? A) advertising B) personal selling C) sales promotion D) publicity E) missionary sales
122) Lonely Planet’s travel guides, including volumes likeGreat Britain, have been indispensable for travelers throughout the world since they describe out-of-the-way, inexpensive restaurants and hotels. These books provide invaluable________Blank to the establishments, though they cannot pay to be included. A) direct sales B) publicity C) direct marketing D) personnel selling E) public service announcement
123) A short-term inducement of value offered to arouse interest in buying a product or service is referred to as A) customer incentive. B) customer enticement. C) free publicity. D) sales promotion. E) purchase incentive.
124)
Sales promotion refers to
Version 1
51
A) a short-term inducement of value offered to arouse interest in buying a product or service. B) a single-themed IMC campaign employing multiple advertising and personal selling strategies. C) individualized communications programs that are specifically designed with a single customer in mind because the item being sold is unique to that customer. D) a long-term inducement of value offered to build and sustain loyal customer relationships. E) a sequence of value inducements aimed at retaining channel members.
125)
Rebates, coupons, samples, and contests are all examples of A) endorsements. B) sponsorships. C) free publicity. D) purchase aids. E) sales promotions.
126)
All of these are examples of sales promotion toolsexcept which? A) samples B) sweepstakes C) coupons D) catalogs E) rebates
127)
Sales promotions cannot be the sole basis for a promotional campaign because
Version 1
52
A) all sales promotions have legal time limit restrictions to prevent unfair trade practices. B) gains from sales promotions are often temporary and sales drop off when they end. C) sales promotions are too costly and soon become a financial liability. D) sales promotions are traditionally handled by outside firms and not the manufacturer, which often results in a significant loss of profit. E) consumers obtain an inflated impression of a product’s actual value or worth.
128)
If used continuously, which promotional element will most likely lose its effectiveness? A) advertising B) personal selling C) sales promotion D) publicity E) direct marketing
129)
Which weakness is associated with sales promotions? A) high absolute costs B) messages differ between the sales promotion tools C) difficult to get media cooperation D) requires expensive pretesting E) effectiveness diminishes when used continuously
130) When you buy Crest toothpaste at your local supermarket because you have a 50-centsoff coupon for it, even though that is not your regular brand, you are being influenced primarily by which promotional element?
Version 1
53
A) advertising B) sales promotion C) public relations D) publicity E) personal selling
131) When Tonya had her baby at a local hospital, she was given a diaper bag with samples of Enfamil baby formula. These free samples are examples of A) free advertising. B) personal selling. C) sales promotions. D) free publicity. E) direct sales.
132) Procter & Gamble introduced Old Spice High Endurance antiperspirant, targeted to teenage boys who don’t watch much TV. P&G handed out samples at skateboarding events and sponsored a contest for the “high school football player of the year.” P&G emphasized which promotional element in this example? A) sales promotion B) advertising C) personal selling D) public relations E) word of mouth
133) Ford held the One Tough Ride Sweepstakes in partnership with the PBR (Professional Bull Riding) World Finals. Participants entered online for the chance to win a new 2021 Ford F150 truck and a VIP trip for two to the PBR World Finals in Vegas. Which promotional element was Ford using here?
Version 1
54
A) advertising B) personal selling C) publicity D) sales promotion E) direct marketing
134) A food warehouse store obtained a very good price on a brand of frozen orange juice and, rather than maintain it as extra inventory, wanted to sell it quickly to consumers. Which promotional element should be used? A) advertising B) personal selling C) publicity D) sales promotion E) direct marketing
135) A promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet is referred to as A) personal selling. B) sales promotion. C) publicity. D) advertising. E) direct marketing.
136)
Direct marketing refers to
Version 1
55
A) individualized communications programs specifically designed with a single customer in mind because the item being sold is unique to that customer. B) a promotional alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. C) a new form of retail outlet with convenient locations. D) a sales strategy whereby the exchange takes place at the time of engagement, such as selling produce at a local farmer’s market. E) a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.
137)
All of these are examples of direct marketing toolsexcept which? A) direct mail B) telephone solicitations C) rebates D) catalogs E) direct-response ads on TV
138)
Like personal selling,________Blank often consists of interactive communication. A) direct marketing B) advertising C) a sales promotion D) publicity E) a public service announcement
139) Direct marketing has the advantage of being________Blank to match the needs of specific target markets.
Version 1
56
A) priced B) standardized C) customized D) engaged E) integrated
140)
Which of these is a strength of direct marketing? A) It can be adapted quickly to facilitate customer relationships. B) It is often the most credible source in the consumer’s mind. C) It works well for providing complex information. D) It can quickly grow or maintain market share as needed. E) It is a low-cost means of reaching the target market.
141)
Which of these is a weakness of direct marketing?
A) Direct marketing is a relatively untargeted method of trying to reach potential customers. B) Messages using direct marketing may differ between direct mailings, confusing the target market. C) Direct marketing is expensive and time-consuming due to the development and maintenance of a database. D) For direct marketing, it is difficult to get media cooperation. E) Direct marketing can lead to promotion wars.
142)
Which of these is a disadvantage of direct marketing?
Version 1
57
A) high absolute costs B) declining customer response rates C) inconsistent messages from salespeople D) difficult to get media cooperation E) easily duplicated and can easily lead to promotion wars
143) A major weakness of________Blank as a form of promotion is that it requires expensive database management. A) advertising B) personal selling C) sales promotion D) publicity E) direct marketing
144) The growing concern about________Blank has led to a decline in direct marketing response rates among some customer groups. A) government regulation B) privacy C) landfill waste D) postal rates E) fraud
145)
Which factor is used to balance the elements of the promotional mix?
Version 1
58
A) competitor’s actions B) the product’s life cycle C) the firm’s core values D) the preferred marketing research tools E) the characteristics of the buyer
146)
Which statement regarding the promotional mix is most accurate?
A) For maximum impact, funding for promotions should be equally divided among the five elements of the promotional mix. B) The promotional mix can be influenced by the target audience, the stage of the product’s life cycle, product characteristics, the decision stage of the buyer, and the channel of distribution. C) Regardless of which other elements are selected, advertising must be included in every promotional decision in order for an IMC campaign to be successful. D) Decisions regarding the promotional mix should be left to each manager in the marketing department who knows best what to do for his or her own specialty. E) It is not necessary to have a coordinated goal for an IMC campaign provided each department has a goal of its own.
147)
Promotional programs are directed at all of theseexcept which? A) the industrial distributor B) the wholesaler C) the competition D) the retailer E) the ultimate consumer
148)
According to recent research, which consumers are considered “digital natives?”
Version 1
59
A) baby boomers B) Hispanics C) Catholics D) college students E) people living in the coastal United States
149)
Marketers can communicate best with college students by A) using cable TV ads since this demographic watches TV more than any other medium. B) adding mobile media to their IMC campaigns. C) placing ads on Sirius XM radio. D) using “Twitter Jockeys.” E) discouraging media multitasking.
150)
Which guideline helps ensure the success of mobile marketing?
A) Campaigns should use A-list celebrities for best results with students. B) Communications should use audio or video content but not both. C) Firms should be avoid social media due to its rapidly changing popularity. D) Communication should be honest, authentic, and transparent about the purpose and value of the brand. E) Communication should include extensive text and images to explain the features and benefits of the product.
151)
The practice of________Blank is common among college students.
Version 1
60
A) media multitasking B) Internet addiction C) creating user-generated content for brands D) focused and extended attention E) receiving and responding to direct-response mobile calls
152)
Which promotional element is particularly important to business buyers? A) public relations B) publicity C) sales promotion D) rebates E) personal selling
153) Many promotional efforts are focused on________Blank, who help coordinate promotional campaigns sponsored by the manufacturer and provide marketing advice and expertise. A) sales personnel B) ultimate consumers C) intermediaries D) repeat buyers E) nonprospects
154)
All products go through a product life cycle of________Blank stages:
Version 1
61
A) two; new and improved. B) two; growth and decline. C) three; new, improved, and obsolete. D) four; awareness, interest, trial, and adoption. E) four; introduction, growth, maturity, and decline.
155)
“To inform” is the promotional objective of which stage of the product life cycle? A) early growth B) growth C) accelerated development D) maturity E) introduction
156)
“To persuade” is the promotional objective of which stage of the product life cycle? A) early growth B) growth C) accelerated development D) maturity E) introduction
157)
“To remind” is the promotional objective of which stage of the product life cycle? A) early growth B) growth C) accelerated development D) maturity E) introduction
Version 1
62
158)
“To phase out” is the promotional objective of which stage of the product life cycle? A) decline B) growth C) remind D) maturity E) introduction
159) The promotional objective of the introduction stage of the product life cycle is to________Blank consumers in order to increase their level of awareness of the product offering. A) inform B) persuade C) appeal to D) remind E) sway
160) A new prescription drug on the market helps reduce common allergy symptoms. Ads for the medicine in magazines and in medical journals would be primarily used to A) remind customers that such a product exists. B) increase the level of customer awareness and interest for the product. C) differentiate the product from all other allergy medications. D) support a product penetration pricing strategy. E) help in harvesting the product.
161) The promotional objective of the growth stage of the product life cycle is to________Blank consumers in what is often an intensely competitive environment.
Version 1
63
A) inform B) remind C) update D) persuade E) sway
162) Persuading the consumer to buy the product rather than substitutes is the promotional objective during which stage of the product life cycle? A) introduction B) growth C) maturity D) accelerated development E) early growth
163) Which promotional element would you most likely use during the growth stage of the product life cycle to solidify channels of distribution? A) advertising B) sales promotion C) publicity D) personal selling E) direct marketing
164) Albert Searchware is a search engine used at company websites to handle customer questions. The firm is trying to determine what promotional strategy should be employed with its flagship product. If search engine software is in the growth stage of its product life cycle, which options should it employ?
Version 1
64
A) Devote 40 percent of the promotional budget to a sales promotion that supplies the public with demonstration CDs to prove the merits of its software. B) Spend 30 percent of the budget in the effort to generate publicity for its software. C) Use the majority of its promotional budget on advertising that focuses on brand differences. D) Use a balanced budget and spend equally for each of the four promotional choices in an attempt to even out sales growth. E) Encourage its tech support staff to emphasize the superiority of its software and its after-sale support.
165)
The promotional objective of the maturity stage of the product life cycle is to A) inform. B) persuade. C) remind. D) sway. E) convince.
166) Reminding buyers of the product’s existence is the promotional objective during which stage of the product life cycle? A) introduction B) growth C) accelerated development D) early growth E) maturity
167) At which stage in the product life cycle are discounts and coupons offered to both consumers and intermediaries to maintain loyal buyers?
Version 1
65
A) introduction B) growth C) accelerated development D) maturity E) decline
168)
The promotional objective of the decline stage of the product life cycle is to A) inform. B) persuade. C) compare. D) remind. E) phase out.
169) During which stage of the product life cycle does the marketer spend little money in the promotional mix? A) decline B) maturity C) growth D) introduction E) reminder
170) The proper blend of elements in the promotional mix depends on the type of product. The three specific characteristics to be considered are complexity,________Blank, and ancillary services.
Version 1
66
A) relevance B) focus C) risk D) meaning E) impact
171) The proper blend of elements in the promotion mix depends on a product’s characteristics. Personal selling would most likely be used to sell A) dog dandruff shampoo. B) an aircraft. C) fresh produce. D) a bottle of soda. E) printer paper.
172)
With respect to a product’s characteristics, complexity refers to the
A) degree of service or support required after the sale. B) assessment of financial risk, social risk, and physical risk. C) number of component parts used in the construction of the original products: the more parts, the more complex the product. D) number of distinct product attributes in terms of color, size, form, and function. E) technical sophistication of the product and the amount of understanding required to use it.
173) A product characteristic known as________Blank refers to the technical sophistication of the product and the amount of understanding required to use it.
Version 1
67
A) user-friendliness B) risk C) complexity D) ancillary service E) accessibility
174) The Olympus Eye Trek is a device that provides “a high-quality personal TV experience.” It resembles a pair of glasses that when worn make the user think he or she is watching a 52-inch high-definition television. An ad for the device contains both a telephone number that can be called and a website that can be visited for further information on how the product works. This Olympus Eye Trek is most likely high in A) user-friendliness. B) complexity. C) risk. D) synergy. E) accessibility.
175) A product characteristic known as________Blank is relevant to promotional mix decisions and has financial, social, and physical components. A) risk B) complexity C) ancillary services D) empathy E) synergy
176)
With respect to a product for which a promotional mix is being developed, risk
Version 1
68
A) refers to the degree of service or support required after the sale. B) refers to the technical sophistication of the product and hence the amount of understanding required to use it. C) in a product means there should be less emphasis on personal selling. D) can be assessed in terms of financial, social, and physical aspects. E) is irrelevant.
177) In terms of product characteristics, the greater the risk, the greater the need for________Blank as a key element of the promotional mix. A) advertising B) personal selling C) sales promotion D) publicity E) public relations
178) With many industrial products and consumer purchases, ancillary services are an important consideration in selecting the promotional mix. The role of________Blank is important to establish the seller’s reputation. However,________Blank is essential for building buyer confidence and providing evidence of customer service. A) sales promotion; personal selling B) personal selling; direct marketing C) advertising; personal selling D) sales promotion; advertising E) public relations; direct marketing
179) In the prepurchase stage of the consumer journey, which promotional element is most important?
Version 1
69
A) public relations B) communication C) advertising D) sales promotion E) personal selling
180)
In the prepurchase stage of the consumer journey, A) trade promotions are more effective than personal selling. B) publicity is the most effective promotion tool. C) advertising is more helpful than personal selling. D) personal selling is more effective than advertising. E) personal selling is the most effective way to communicate with potential buyers.
181) In the purchase stage of the consumer journey,________Blank gives consumers control over the process. A) public relations B) direct marketing C) advertising D) product sampling E) social media
182) In the purchase stage of the consumer journey, research indicates that________Blank activities shorten the time consumers take to adopt a product or service.
Version 1
70
A) public relations B) direct marketing C) advertising D) product sampling E) social media
183)
In the postpurchase stage of the consumer journey, advertising and personal selling help A) reduce the need for personal contact. B) support the public relations element, which plays a major role. C) sales discounting requirements. D) reduce the buyer’s postpurchase anxiety. E) shorten the time consumers take to adopt a product.
184) During the postpurchase stage of the consumer purchase decision process, marketers want to reduce postpurchase anxiety for their customers. Which of these would be most useful for accomplishing this objective? A) advertising only B) direct marketing only C) sales promotion and advertising D) publicity and advertising E) advertising and personal selling
185) During the postpurchase stage of the consumer purchase decision process,________Blank in the form of coupons can help encourage repeat purchases from satisfied first-time triers.
Version 1
71
A) advertising B) personal selling C) sales promotion D) publicity E) direct marketing
186) During the postpurchase stage of the consumer purchase decision process,________Blank plays a small role. A) advertising B) personal selling C) sales promotion D) public relations E) direct marketing
Version 1
72
187)
Channel A in Figure 18-5 represents which type of promotional channel strategy?
A) direct B) indirect C) push D) pull E) vertical
Version 1
73
188)
Channel B in Figure 18-5 represents which type of promotional channel strategy?
A) direct B) indirect C) push D) pull E) vertical
189)
When employing a push strategy, a manufacturer
Version 1
74
A) advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use of nationwide advertising campaigns. B) directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product. C) forces a retailer to promote its products by placing national ads in local newspapers. D) directs its efforts in the form of advertising and sales promotions to ultimate consumers to encourage them to ask the retailer for the product. E) directs retailers to promote one product over another to help balance fluctuations in inventory.
190) When a manufacturer directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product, it is using________Blank strategy. A) a push B) a pull C) an inertia D) an exclusivity E) a logistics
191) Ford Motor Company provides support and incentives for its Ford and Lincoln dealers worldwide. Through a multilevel program, Ford provides incentives to reward dealers for meeting sales goals. Dealers receive an incentive when they are near a goal, another when they reach a goal, and a larger incentive if they exceed sales projections. All of these actions are intended to encourage dealers to________Blank the Ford products through the channel to consumers. A) dump B) pull C) unload D) no haggle E) push
Version 1
75
192) Directing the promotional mix at ultimate consumers to encourage them to ask retailers for the product is referred to as a(n) A) push strategy. B) intensity strategy. C) inertia strategy. D) exclusivity strategy. E) pull strategy.
193)
When employing a pull strategy, a manufacturer
A) advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use of nationwide advertising campaigns. B) forces a retailer to promote its product by placing national brand ads in local newspapers. C) directs the promotional mix at ultimate consumers to encourage them to ask retailers for the product. D) directs the promotional mix toward channel members to gain their cooperation in ordering and stocking the product. E) directs retailers to promote one product over another to help balance fluctuations in inventory.
194) Pharmaceutical companies now spend more than $9.6 billion annually on________Blank prescription drug advertising to complement traditional personal selling and free samples directed only at doctors. This combines a pull strategy with a push one.
Version 1
76
A) consumer integrated B) doctor cohort C) informational DVD D) direct-to-consumer E) customized online
195) Many prescription drugs such as Neulasta have national TV advertising campaigns to encourage patients to learn more about the drugs and ask for them by name from their doctors. The manufacturers of these drugs are using a(n)________Blank strategy. A) integrated B) pull C) push D) inertia E) exclusive
196) The promotion decision process is divided into three phases. In Figure 18-6, Box A refers to the ________Blank phase.
Version 1
77
A) planning B) forecasting C) evaluation D) realization E) implementation
197) The promotion decision process is divided into three phases. In Figure 18-6, Box B refers to the ________Blank phase.
A) planning B) forecasting C) evaluation D) realization E) implementation
Version 1
78
198) The promotion decision process is divided into three phases. In Figure 18-6, Box C refers to the ________Blank phase.
A) planning B) forecasting C) evaluation D) realization E) implementation
199) The actions a firm takes during the promotion decision process include________Blank, executing, and assessing the promotion program. A) pretesting B) developing C) stating the mission D) selecting the appeal E) selecting the media
200)
The first decision in developing the promotion program is to
Version 1
79
A) set the budget. B) state the mission. C) identify the target audience. D) select the appeal. E) select the media.
201)
Which task is completed during the planning phase of an IMC program? A) set the budget B) pretest the promotion C) state the mission D) identify possible advertising or promotional firms E) carry out the promotion
202) During the implementation phase of an IMC program, a firm will________Blank and carry out the promotion. A) posttest the promotion B) design the promotion C) state the mission D) identify possible advertising or promotional firms E) pretest the promotion
203) and
During the implementation phase of an IMC program, a firm will pretest the promotion
Version 1
80
A) posttest the promotion. B) design the promotion. C) state the mission. D) carry out the promotion. E) identify possible advertising or promotional firms.
204) During the evaluation phase of an IMC program, a firm will________Blank and make needed changes. A) posttest the promotion B) design the promotion C) state the mission D) carry out the promotion E) identify possible advertising or promotional firms
205) During the planning phase of the promotion program, marketers focus on the four Ws, which include all of these questionsexcept which? A) What are the promotion objectives, the budget, and the kinds of copy to use? B) Why is the promotion being done? C) When should the promotions be run? D) Who is the target audience? E) Where should the promotions be run?
206) The________Blank audience is defined as the group of prospective buyers toward which a promotion program is directed.
Version 1
81
A) direct B) intended C) promotion D) selling E) target
207)
Promotional programs are specifically directed toward a group of prospective buyers, or A) sources. B) diffusers. C) encoders. D) a target audience. E) a media channel.
208) For a promotional campaign, the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action is referred to as A) the purchase continuum. B) the hierarchy of effects. C) the product life cycle. D) the consumer purchasing scale. E) Maslow’s hierarchy.
209) For a promotional campaign, the hierarchy of effects refers to the stages a prospective buyer goes through, which include
Version 1
82
A) inform, persuade, and remind. B) interest, adoption, and loyalty. C) cognition, affect, and behavior. D) awareness, interest, evaluation, trial, and adoption. E) seeing, trying, buying, and rebuying.
210) A prospective buyer goes through a sequence of stages including awareness, interest, evaluation, trial, and adoption, which are referred to as A) the hierarchy of effects. B) Maslow’s hierarchy. C) the purchase decision continuum. D) the consumer-product cycle. E) the consumer purchasing pattern.
211)
The first stage in the hierarchy of effects is A) interest. B) awareness. C) informing. D) trial. E) evaluation.
212)
After awareness in the hierarchy of effects is
Version 1
83
A) interest. B) informing. C) involvement. D) trial. E) evaluation.
213)
The fourth of five stages in the hierarchy of effects is A) interest. B) awareness. C) adoption. D) trial. E) evaluation.
214)
The last stage in the hierarchy of effects is A) interest. B) awareness. C) adoption. D) repurchase. E) evaluation.
215) In the hierarchy of effects, the consumer’s ability to recognize and remember the product or brand name is referred to as the________Blank stage.
Version 1
84
A) adoption B) evaluation C) awareness D) internalization E) trial
216)
In the hierarchy of effects, awareness is defined as
A) the consumer’s first actual purchase and use of the product or brand. B) the consumer’s repeated purchase and use of the product or brand. C) the consumer’s appraisal of the product or brand on important attributes. D) an increase in the consumer’s desire to learn about some of the features of the product or brand. E) the consumer’s ability to recognize and remember the product or brand name.
217) In the hierarchy of effects, an increase in the consumer’s desire to learn about some of the features of the product or brand is referred to as the________Blank stage. A) adoption B) exploration C) awareness D) interest E) trial
218)
In the hierarchy of effects, interest refers to
Version 1
85
A) the consumer’s ability to recognize and remember the product or brand name. B) the consumer’s appraisal of the product or brand on important attributes. C) an increase in the consumer’s desire to learn about some of the features of the product or brand. D) a favorable experience on the first trial, resulting in the consumer’s repeated purchase and use of the product or brand. E) the consumer’s first actual purchase and use of the product or brand.
219) Ann’s young son suffers from allergies and complains about his watery eyes and sneezing. When Ann saw an ad for a new drug that counters these symptoms inMartha Stewart Living magazine, she planned to ask his doctor about this product on her son’s next visit. Ann is at which stage in the hierarchy of effects? A) She is the trial stage and will move to the interest stage soon. B) She has moved quickly from the awareness stage to the interest stage. C) She was in the consumer development stage and will more than likely move to the transition stage. D) She is in the evaluation stage and will move to the interest stage soon. E) She was in the interest stage and then moved quickly to the diffusion stage.
220) In the hierarchy of effects, the consumer’s appraisal of the product or brand on important attributes is referred to as the________Blank stage. A) evaluation B) adoption C) awareness D) interest E) trial
221)
In the hierarchy of effects, evaluation refers to
Version 1
86
A) the consumer’s ability to recognize and remember the product or brand name. B) the consumer’s appraisal of the product or brand on important attributes. C) an increase in the consumer’s desire to learn about some of the features of the product or brand. D) a favorable experience on the first trial, resulting in the consumer’s repeated purchase and use of the product or brand. E) the consumer’s first actual purchase and use of the product or brand.
222) In the hierarchy of effects, the consumer’s actual first purchase and use of the product or brand is referred to as the________Blank stage. A) adoption B) evaluation C) sampling D) interest E) trial
223)
In the hierarchy of effects, trial refers to
A) the consumer’s ability to recognize and remember the product or brand name. B) the consumer’s appraisal of the product or brand on important attributes. C) the consumer’s first actual purchase and use of the product or brand. D) an increase in the consumer’s desire to learn about some of the features of the product or brand. E) a favorable experience on the first trial, resulting in the consumer’s repeated purchase and use of the product or brand.
Version 1
87
224) CoolMax is a fabric made by DuPont used in the manufacture of exercise clothes because it keeps the user “cool and dry.” The ads for the fabric in health and fitness magazines convinced Kumar to buy a pair of Thorlo CoolMax walking crew socks made of the material. Since he had never before owned anything made with CoolMax, Kumar was in which stage of the hierarchy of effects? A) trial B) exploration C) innovation D) experimentation E) interest
225) In the hierarchy of effects, a favorable experience on the first trial causes the consumer’s repeated purchase and use of the product or brand in the________Blank stage. A) evaluation B) adoption C) awareness D) interest E) usage
226)
In the hierarchy of effects, adoption refers to
A) the point at which the consumer accepts the integrity of the manufacturer and the reliability of the product. B) the consumer’s appraisal of the product or brand on the majority of important attributes. C) an increase in the consumer’s desire to learn about some of the features of the product or brand. D) the consumer’s actual first purchase and use of the product or brand. E) the consumer’s repeated purchase and use of the product or brand after a favorable experience on the first trial.
Version 1
88
227) The popularity of social media sometimes leads to a new stage in the hierarchy of effects known as________Blank where loyal consumers recommend brands they have adopted. A) evaluation B) advocacy C) preference D) interest E) repurchase
228) Promotion objectives should possess three important qualities. They should cover a specified time period, be measurable, and be A) persuasive. B) transparent. C) designed for a well-defined target audience. D) sustainable. E) innovative.
229)
All of these are methods that firms use to set their promotion budgetsexcept which? A) objective and task B) lost-horse forecast C) competitive parity D) percentage of sales E) all you can afford
230)
Percentage of sales budgeting refers to
Version 1
89
A) matching a competitor’s absolute level of spending or the proportion per point of market share. B) allocating funds to a promotion only after all other budget items are covered. C) spending on promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. D) determining a firm’s promotion objectives, outlining the tasks to accomplish these objectives, and determining the advertising cost of performing these tasks. E) allocating funds to a promotion based on expected profits generated from it.
231) A budgeting method that allots spending on promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold, is referred to as________Blank budgeting. A) percentage of sales B) competitive parity C) all-you-can-afford D) objective and task E) linear forecast
232) In which sales budgeting approach is the amount of money allocated based on past or anticipated sales? A) competitive parity B) all-you-can-afford C) objective and task D) percentage of sales E) relative scale
Version 1
90
233) A major fallacy of________Blank budgeting is that sales cause promotion. Using this method, a company may reduce the amount it spends on promotion if sales declined the previous period when it may actually need to spend more. A) competitive parity B) all-you-can-afford C) objective and task D) linear forecast E) percentage of sales
234) The owner of a cosmetics start-up told his employees, “We had a good year, and next year looks to be even better. I’m going to raise this year’s promotion budget by 4.5 percent compared to last year’s. We had strong growth in sales of close to 10 percent this year so I think we can do more advertising.” This company is most likely using________Blank budgeting. A) percentage of sales B) competitive parity C) all-you-can-afford D) objective and task E) linear forecast
235) The promotion-to-sales ratio is a measure used in the________Blank budgeting approach. A) competitive parity B) all-you-can-afford C) percentage of sales D) objective and task E) linear forecast
Version 1
91
236) Managers often use the promotion-to-sales ratio on their marketing dashboards to assess how effective the integrated marketing communications program expenditures were at generating A) sales. B) customer satisfaction. C) profits. D) promotional sustainability. E) CPM.
237) The promotion-to-sales ratio can be used by managers to make year-to-year comparisons of their programs or to compare with A) calculated break-even points. B) estimated return on investments. C) promotion-to-expense ratios. D) competitors or industry averages. E) advertising-to-sales promotion ratios.
238) A common way to assess the effectiveness of all promotion expenditures during the past year is to calculate A) a break-even point. B) a promotion-to-sales ratio. C) ROI. D) a promotion-to-expenses ratio. E) an advertising-to-sales promotion ratio.
239) The formula to calculate a promotion-to-sales ratio is: Total promotion expenditures divided by
Version 1
92
A) total marketing costs. B) unit sales price. C) average revenue. D) net sales. E) total sales.
240) A marketing manager at an auto company computed its promotion-to-sales ratio, that of the major competitor, and the auto industry itself. She found that the company’s ratio was 2.8 percent, the competitor’s ratio was 4.5 percent, and the auto industry average was 6.7 percent. She then realized A) she was spending too little on promotional efforts. B) she needed to explain these numbers to her boss, especially in relation to the industry. C) the competitor shortly would be taking market share from the company. D) she spent her promotional dollars effectively. E) overall the industry was wasting money on ineffective sales promotions such as cashback offers.
241)
Competitive parity budgeting refers to
A) matching a competitor’s absolute level of spending or the proportion per point of market share. B) allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. C) allocating funds to a promotion only after all other budget items are covered. D) determining a firm’s promotion objectives, outlining the tasks to accomplish these objectives, and determining the advertising cost of performing these tasks. E) allocating funds to a promotion based on expected profits generated from it.
Version 1
93
242) Allocating funds to promotion by matching the competitor’s absolute level of spending or the proportion per point of market share is referred to as________Blank budgeting. A) percentage of sales B) competitive parity C) all-you-can-afford D) objective and task E) linear forecast
243)
Another name for competitive parity budgeting is________Blank budgeting. A) linear forecast B) all-you-can-afford C) share of market D) comparative E) matched media
244) to as
Allocation of funds to promotion only after all other budget items are covered is referred
A) percentage of sales budgeting. B) all-you-can-afford budgeting. C) competitive parity budgeting. D) objective and task budgeting. E) linear forecast budgeting.
245)
All-you-can-afford-budgeting refers to
Version 1
94
A) allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. B) matching a competitor’s absolute level of spending or the proportion per point of market share. C) determining a firm’s promotion objectives, outlining the tasks to accomplish these objectives, and determining the advertising cost of performing these tasks. D) allocating funds to a promotion only after all other budget items are covered. E) allocating funds to a promotion based on expected profits generated from it.
246) The owner of a nail shop that operates in a local strip mall told her daughter, “Well, after budgeting for all of our expenses for next year, we still have about $7,500 remaining for emergencies. Let’s budget 20 percent of that amount for advertising.” What budgeting technique is the retailer most likely using? A) all-you-can-afford budgeting B) percentage of sales budgeting C) competitive parity budgeting D) objective and task budgeting E) linear forecast budgeting
247) Allocating funds to promotion whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks is referred to as A) percentage of sales budgeting. B) competitive parity budgeting. C) all-you-can-afford budgeting. D) linear forecast budgeting. E) objective and task budgeting.
Version 1
95
248) The best approach to budgeting is objective and task budgeting, whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and A) asks the ad agency for an estimate. B) asks the media to propose a program. C) determines the promotion cost of performing these tasks. D) determines what spending level top management will allow for the proposed program. E) surveys customers to determine what spending levels they think are appropriate.
249)
Which of these is the best approach to promotion budgeting? A) objective and task budgeting B) percentage of sales budgeting C) competitive parity budgeting D) all-you-can-afford budgeting E) linear forecast budgeting
250) The difficulty with the objective and task approach to promotional budgeting is the judgment required to A) accurately estimate costs of tasks. B) identify appropriate promotion objectives. C) accurately determine previous year expenditures and sales. D) perform the promotion tasks as intended. E) accurately estimate what tasks will accomplish each promotion objective.
251) The Olympics have become a very visible example of a comprehensive integrated communication program. For organizers, primary importance is placed on
Version 1
96
A) advertising and personal selling. B) personal selling and public relations. C) public relations and publicity. D) sales promotion and direct marketing. E) direct marketing and personal selling.
252) The design of the promotion will play a primary role in determining the message that is communicated to the audience. Successful designs rely in part on A) accurately estimating costs of tasks. B) identifying appropriate objectives. C) accurately estimating what task will accomplish each objective. D) obtaining insights regarding consumers’ interests and behavior. E) evaluating staff on task performance.
253) Once the design of each of the promotional program elements is complete, it is important to determine the most effective timing of their use. The________Blank describes the order in which each promotional tool is introduced and the frequency of its use during a campaign. A) perceptual map B) efficiency matrix C) sensitivity analysis D) promotion-to-sales ratio E) promotion schedule
254) In terms of a promotional schedule, businesses such as ski resorts, airlines, and professional sports teams are likely to reduce their promotional activity
Version 1
97
A) when competitors leave the market. B) during the off-season. C) only when sales are down more than 10-20 percent. D) if they find cheaper social media options to be effective. E) when the target audience becomes younger.
255) One researcher estimates that “an organization with sales between $200 million and $500 million will need three_________Blank” to successfully implement an IMC program. A) days B) weeks C) months D) years E) decades
256) According to the text,________Blank recently wonAd Age magazine’s coveted Media Agency of the Year award. A) 72 and Sunny B) Initiative C) Fallon D) LatinWorks E) Disney
257) An important factor in developing successful IMC programs is to create a process that facilitates their design and use. A tool used to evaluate a company’s current process is the IMC
Version 1
98
A) audit. B) sensitivity analysis. C) what-if analysis. D) perceptual map. E) pretest.
258) Which statement about executing and evaluating the promotion program is most accurate? A) Although there are five elements in the promotional mix, the only element that really benefits from an IMC audit is advertising. B) Most IMC programs have no difficulty creating a pretest, but posttests are much more difficult to construct since a number of unknown elements must be measured. C) In addition to ensuring that traditional forms of communication are integrated, companies must be able to monitor consumer content, respond to inconsistent messages, and answer questions from individual customers. D) The ideal IMC program does not need any evaluation if it is executed according to plan. E) The most effective IMC audits are external. Internal audits tend to bias the results in the favor of the marketing staff’s expectations.
259)
All of these are forms of direct marketingexcept which? A) catalogs B) in-store samples C) telemarketing D) television home shopping E) direct mail
260)
Which form of direct marketing has thelowest business expenditures?
Version 1
99
A) direct mail B) e-mail C) telemarketing D) paid search E) advertising
261)
Which form of direct marketing has thehighest business expenditures? A) e-mail B) direct mail C) paid search D) telemarketing E) advertising
262) Commonly used forms of direct marketing like direct mail and e-mail have response rates between A) 2 percent and 9 percent. B) 12 percent and 26 percent. C) 28 percent and 40 percent. D) 41 percent and 48 percent. E) 49 percent and 60 percent.
263)
Which form of direct marketing has thehighest response rate?
Version 1
100
A) direct mail B) e-mail C) paid search D) telemarketing E) advertising
264)
Sales from which direct marketing tool is growing the fastest at 33 percent? A) mobile direct marketing B) online direct marketing C) telemarketing D) e-mail marketing E) direct mail marketing
265)
Which form of direct marketing has the lowest cost of acquiring a new customer? A) e-mail B) telemarketing C) online D) mobile E) mail
266)
Customers report many benefits of direct marketing, including which of these? A) There is more privacy than in-store shopping. B) There are fewer product returns. C) The prestige of the purchase is higher. D) There is a higher level of communication to induce customer loyalty. E) Products are generally bundled with other products to offer buyers greater value.
Version 1
101
267)
Which statement regarding direct marketing is most accurate?
A) Direct marketing now allows customers to shop during regular business hours, with extended hours on weekends. B) Although direct marketing usually saves customers time, it does not usually save customers money. C) Although direct marketing can save consumers time and money, the process is labor intensive and not very much fun. D) Many customers believe direct marketing provides excellent customer service. E) Direct customers feel that their privacy is more likely to be compromised with direct marketing than with other methods.
268) An offer that contains all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction may result in A) a direct order. B) lead generation. C) traffic generation. D) data compilation. E) a prospect bid.
269)
Direct orders are
Version 1
102
A) direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. B) products that are shipped directly to the place of purchase rather than being stored or distributed through intermediaries. C) the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. D) the outcome of an offer designed to motivate people to visit a business. E) the result of an offer designed to generate interest in a product or service and a request for additional information.
270) An offer designed to generate interest in a product or service and a request for additional information results in A) direct orders. B) lead generation. C) traffic generation. D) indirect orders. E) prospecting.
271)
Lead generation is
A) the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. B) direct telephone communication only with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. C) a bundle of products that are shipped directly to the point of purchase rather than being stored or distributed through intermediaries. D) the outcome of an offer designed to motivate people to visit a business. E) the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information.
Version 1
103
272) A paid advertisement for the Texas Department of Economic Development—Tourism Division invited readers of a magazine to mail in a postage-paid reply card that was included with the ad, visit the state’s website, or use a toll-free number to request more information about vacation destinations in Texas. The primary purpose of this ad was A) direct order fulfillment. B) to make a public service announcement. C) indirect order generation. D) lead generation. E) digital communication.
273) The outcome of a direct marketing offer designed to motivate people to visit a business is referred to as A) direct order consignment. B) lead generation. C) traffic generation. D) indirect order fulfillment. E) first-mover advantage.
274)
Traffic generation is
Version 1
104
A) the outcome of an offer designed to motivate people to visit a business. B) the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. C) direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. D) the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information. E) an increase in the amount of foot traffic in a retail establishment that coincides with a new advertising campaign.
275) Amanda received a postcard from a local wellness spa. The card invited her to attend an invitation-only open house and receive a 20 percent discount on her first service scheduled that day. She went to the spa later in the week to consider getting a facial. With respect to Amanda, the postcard from the spa was a form of direct marketing used to A) generate direct orders. B) generate leads. C) create awareness. D) generate traffic. E) create a new image.
276) ________Blank are the result of organizations’ efforts to create profiles of customers so that direct marketing tools, such as e-mail and catalogs, can be directed at specific customers. A) Databases B) Direct order fulfillments C) Lead generations D) First-mover advantages E) Direct order consignments
Version 1
105
277) All of these are consumer-related data that comprise a direct marketing database (such as for a catalog)except which? A) media usage B) demographics C) brand preferences D) income tax rate E) lifestyles
278) Amazon.com, a successful online retailer, manages an extensive customer database that is used to determine which products are suggested to each customer. Some data are collected from the customer; other data are collected from the businesses where purchases are made. Which customer data are typically collected from the customer? A) brand B) price C) media use D) model E) quantity
279) Amazon.com, a successful online retailer, manages an extensive customer database that is used to determine which products are suggested to each customer. Some data are collected from the customer; other data are collected from the businesses where purchases are made. Which customer data are typically collected by Amazon through tracking transactions? A) lifestyles B) price C) demographics D) media use E) Tax ID numbers
Version 1
106
280) Direct marketing faces several challenges and opportunities in global markets. Several countries, such as the United Kingdom, Australia, and Japan, have requirements for mandatory “opt-in,” which means A) global marketers must pay a special fee beyond the regular postage for the privilege of using a country’s postal system. B) global marketers wishing to use direct marketing must have all mailings approved by their respective trade commissions for appropriateness of content. C) global marketers have to purchase special “catalog” postage at a cost higher than that charged for the same weight of mail sent from one individual to another. D) consumers have to pay a special fee to the government to defray the costs of mail carriers having to handle larger volumes of mail from catalogs. E) potential customers must give permission to include their name on a list for direct marketing solicitations.
281) Factors such as differences in payment methods (lack of credit and credit cards), the need for improved reliability and security with regard to the mail, telephone, and Internet systems, and government regulations create challenges for________Blank in the global market. A) direct marketing B) advertising C) personal selling D) sales promotion E) publicity
282) The European Union passed a consumer privacy law, called the________Blank, after several years of discussion with the Federation of European Direct Marketing and the UK’s Direct Marketing Association.
Version 1
107
A) Personal Identity Law B) Intellectual Property Act C) Data Protection Directive D) Credit Protection Act E) Shared Information Act
283) A new version of the Data Protection Directive in the EU, called the________Blank, addresses consumer privacy for social networks and cloud computing. A) General Data Protection Regulation B) Personal Identity Law C) Intellectual Property Act D) Credit Protection Act E) Shared Information Act
284) All of these are challenges and opportunities that direct marketing faces in global marketsexcept which? A) The need for improved reliability and security in many countries has slowed the growth of direct mail. B) The availability of credit and credit cards varies throughout the world. C) The European Union deregulated the use of popular web “tracking” tools used by direct marketers to match consumers with advertising. D) The mail, telephone, and Internet systems in many countries are not as well developed as they are in the United States. E) The European Union passed a consumer privacy law, called the Data Protection Directive due to consumer concerns about privacy.
Version 1
108
285) The National Do Not Call Registry was created to give Americans a tool for maintaining their privacy on home telephone lines. More than________Blank percent of all households are registered. A) 95 B) 90 C) 80 D) 70 E) 30
286) Proponents of Do-Not-Track regulations suggest that website owners that use cookies to collect information about consumers’ shopping habits should only do so A) with new customers. B) with consumers’ consent. C) with repeat customers. D) when new products are being offered. E) when competitors use cookies.
287)
The European Union passed a law called the E-Privacy Directive to A) provide explicit data tracking laws for website owners. B) protect intellectual property. C) increase data transparency. D) reduce the instances of hacking. E) allow consumers to access their search records.
288)
The integrated marketing communications approach for Chipotle Mexican Grill seeks to
Version 1
109
A) develop iconic television advertising. B) consider all touchpoints as an opportunity to connect. C) use traditional promotion tools only. D) use new social media only. E) apply word-of-mouth advertising only.
289)
Though it began conservatively as a start-up, Chipotle Mexican Grill quickly began A) developing a global citizenship style. B) using very creative promotional activities. C) applying a bring-it-on attitude against competitors. D) applying an aggressive personal philosophy. E) preaching a just-do-it mantra to both customers and employees.
290) The advertising campaign, “Can a Burrito Change the World?” which focuses on food sourcing belongs to which brand? A) McDonald’s B) Baja Fresh C) Chick-Fil-A D) Chipotle E) Panera Bread
291)
Which of these is a recent innovation at Chipotle?
Version 1
110
A) Vegan Wraps B) Flan-on-the-Go C) Lifestyle Bowls D) a variety of Mexican beer imports E) Breakfast Burritos
292)
List the key elements of the promotional mix. Why are they used?
293)
List and briefly describe the key elements of the communication process.
Version 1
111
294) Figure 18-1 above depicts the communication process, which consists of 10 key elements (Boxes A through J). Identify and briefly describe each of the 10 elements.
295)
Identify and briefly describe each of the five promotional elements.
296) What are the strengths/advantages and weaknesses/disadvantages of using personal selling in the promotional mix?
Version 1
112
297) What are the strengths/advantages and weaknesses/disadvantages of using advertising in the promotional mix?
298) What are the strengths/advantages and weaknesses/disadvantages of using publicity in the promotional mix?
299) What are the strengths/advantages and weaknesses/disadvantages of using sales promotion in the promotional mix?
300) What are the strengths/advantages and weaknesses/disadvantages of using direct marketing in the promotional mix?
301) Identify each stage of the product life cycle and discuss the role of promotion in the four stages of the product life cycle.
Version 1
113
302) What three product characteristics should be considered when selecting promotional tools? For each characteristic, give an example of a product where the characteristic is very important.
303) Knowing which stage of the purchase decision process the consumer is in can affect the promotional mix. How does the importance of advertising, personal selling, and sales promotion change as a consumer moves through stages of the decision process?
304) Compare push and pull strategies as alternative promotional methods for moving a product through a channel of distribution.
305) The promotion decision process is divided into three steps. What are they? Briefly describe each one.
306)
Development of the promotion program focuses on the four Ws. What are they?
Version 1
114
307)
Explain what the hierarchy of effects is. List and explain the five stages.
308)
Identify and discuss four methods used to set the promotion budget.
309) What is the best approach for determining a promotion budget? What advantages does this method offer that the other methods do not?
310)
What value does direct marketing provide customers?
Version 1
115
Answer Key Test name: Chap 18_16e_Kerin 1) D 2) D 3) D 4) A 5) D 6) B 7) C 8) E 9) D 10) A 11) B 12) D 13) E 14) E 15) E 16) E 17) A 18) B 19) C 20) D 21) A 22) E 23) C 24) D 25) A 26) A Version 1
116
27) B 28) C 29) B 30) D 31) E 32) C 33) E 34) B 35) D 36) C 37) B 38) E 39) C 40) D 41) E 42) A 43) C 44) B 45) D 46) E 47) C 48) D 49) B 50) A 51) C 52) D 53) A 54) C 55) B 56) E Version 1
117
57) C 58) B 59) A 60) D 61) A 62) D 63) B 64) E 65) C 66) C 67) A 68) D 69) C 70) A 71) B 72) D 73) E 74) E 75) B 76) C 77) A 78) D 79) B 80) E 81) C 82) B 83) D 84) C 85) A 86) A Version 1
118
87) E 88) D 89) C 90) C 91) A 92) E 93) B 94) D 95) A 96) C 97) B 98) E 99) B 100) C 101) B 102) B 103) D 104) A 105) C 106) D 107) E 108) D 109) B 110) A 111) B 112) C 113) A 114) E 115) D 116) C Version 1
119
117) A 118) B 119) D 120) B 121) D 122) A 123) D 124) A 125) E 126) D 127) B 128) C 129) E 130) B 131) C 132) A 133) D 134) D 135) E 136) B 137) C 138) A 139) C 140) A 141) C 142) B 143) E 144) B 145) B 146) B Version 1
120
147) C 148) D 149) B 150) D 151) A 152) E 153) C 154) E 155) E 156) B 157) D 158) A 159) A 160) B 161) D 162) B 163) D 164) C 165) C 166) E 167) D 168) E 169) A 170) C 171) B 172) E 173) C 174) B 175) A 176) D Version 1
121
177) B 178) C 179) C 180) C 181) E 182) B 183) D 184) E 185) C 186) D 187) C 188) D 189) B 190) A 191) E 192) E 193) C 194) D 195) B 196) A 197) E 198) C 199) B 200) C 201) A 202) E 203) D 204) A 205) B 206) E Version 1
122
207) D 208) B 209) D 210) A 211) B 212) A 213) D 214) C 215) C 216) E 217) D 218) C 219) B 220) A 221) B 222) E 223) C 224) A 225) B 226) E 227) B 228) C 229) B 230) C 231) A 232) D 233) E 234) A 235) C 236) A Version 1
123
237) D 238) B 239) E 240) D 241) A 242) B 243) C 244) B 245) D 246) A 247) E 248) C 249) A 250) E 251) C 252) D 253) E 254) B 255) B 256) B 257) A 258) C 259) B 260) B 261) D 262) A 263) D 264) A 265) A 266) A Version 1
124
267) D 268) A 269) C 270) B 271) E 272) D 273) C 274) A 275) D 276) A 277) D 278) C 279) B 280) E 281) A 282) C 283) A 284) C 285) D 286) B 287) A 288) B 289) B 290) D 291) C
Version 1
125
CHAPTER 19 1)
Advertisers are adjusting to rapid changes in A) email marketing. B) direct-to-DVR programming. C) how consumer data is collected online. D) long-form commercials. E) commercials broadcast on IoT technology.
2) “Smart audiences” are growing in importance with the disappearance of cookies, and can be effective for advertisers because members of these cohorts have similar A) purchase histories. B) media habits. C) advertising preferences. D) technologies in their homes or businesses. E) personality traits.
3) Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor is referred to as A) publicity. B) sales promotion. C) advertising. D) personal selling. E) direct marketing.
4)
Advertising is
Version 1
1
A) any nonpaid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. B) any paid form of personal communication about an organization, product, service, or idea by an identified sponsor. C) any nonpaid form of personal communication about an organization, product, service, or idea by an unidentified sponsor. D) any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. E) any paid form of nonpersonal communication about an organization, product, service, or idea by an unidentified sponsor.
5)
Advertisements can typically be divided into two types: A) prepurchase and postpurchase. B) promotional and reinforcement. C) promotional and informative. D) product and service. E) product and institutional.
6)
Product advertisements are advertisements that focus on A) promoting a product class or category rather than an individual brand’s offering. B) building goodwill or an image for an organization. C) counteracting negative opinions. D) selling a product or service. E) clarifying misconceptions.
7) ________Blank advertisements can take three forms: pioneering (or informational), competitive (or persuasive), and reminder.
Version 1
2
A) Product B) Service C) Persuasive D) Institutional E) Cooperative
8)
The three primary types of product advertisements are A) pioneering, institutional, and informational. B) humor, sex, and fear. C) pioneering, competitive, and reminder. D) competitive, subliminal, and institutional. E) cognitive, affective, and behavioral.
9)
Which of these is one of the three primary types of product advertisements? A) goodwill B) industrial C) persuasive D) pioneering E) subliminal
10)
A pioneering (or informational) ad A) reinforces previous knowledge of a product. B) assures current users they made the right choice. C) promotes a specific brand’s features and benefits. D) tells people what a product is, what it can do, and where it can be found. E) shows one brand’s strengths relative to those of competitors.
Version 1
3
11)
Another name for pioneering advertising is________Blank advertising. A) differentiation B) persuasive C) prospecting D) awareness E) informational
12) Pioneering advertisements would most likely be used during which stage of the product life cycle? A) introduction B) decline C) maturity D) acceleration E) growth
13)
A pioneering advertisement should A) tell people what the company values are, and share its successes and advancements. B) inform the target market about what a product is, what it can do, and where it can be
found. C) show one brand’s strengths relative to those of competitors. D) reinforce previous knowledge of a product. E) build goodwill or an image for an organization rather than promote a specific product or service.
14)
The key objective of a pioneering ad is to
Version 1
4
A) provide concrete evidence for comparison of a product’s features and benefits. B) show one brand’s strengths relative to those of competitors. C) inform the target market about a newly introduced product. D) reinforce previous knowledge of a product. E) promote the advantages of one product class over another.
15) Informational ads, particularly those with specific information, have been found to be interesting, convincing, and A) inexpensive. B) humorous. C) expensive. D) effective. E) competitive.
16) A Mercedes-Benz ad features the introduction of its new self-driving car. What type of product advertisement is this ad? A) reminder B) pioneering C) reinforcement D) comparative E) competitive
17) When the Campbell Soup Co. introduced its new Slow Kettle Style Soups, its advertising touted restaurant-quality soup with authentic ingredients and unique flavors available at the grocery store. What type of product advertisement was it most likely using in its ads?
Version 1
5
A) reminder B) pioneering C) reinforcement D) comparative E) competitive
18) A Verizon “Share Everything” ad that describes a new smartphone plan with unlimited talk and text service informs its target market about what the service includes and how it can improve communication. This ad is an example of a(n)________Blank advertisement. A) reminder product B) reminder institutional C) competitive product D) informational institutional E) pioneering product
19) TransWave International is a small company that has developed a system that uses the Internet and patented electronic sensors as an early-warning device for pipeline leaks. With recent growth in the natural gas industry, the timing is right for this company’s success, but it must use________Blank advertising so oil companies will know of its product’s existence. A) reminder B) competitive C) pioneering D) institutional E) objective
20) Advertising that promotes a specific brand’s features and benefits is referred to as________Blank advertising.
Version 1
6
A) competitive B) institutional C) differentiation D) pioneering E) reminder
21)
A competitive (or persuasive) ad A) reinforces previous knowledge of a product. B) assures current users they made the right choice. C) promotes a specific brand’s features and benefits. D) tells people what a product is, what it can do, and where it can be found. E) shows one brand’s strengths relative to those of competitors.
22)
The key objective of competitive advertising is to A) tell people what a product is, what it can do, and where it can be found. B) show a brand’s values and history. C) reinforce previous knowledge of a product. D) promote the advantages of one product class over another. E) persuade the target market to select the firm’s brand rather than that of a competitor.
23) When Cadillac uses advertising to promote specific features of its Escalade hybrid, it is using which type of product advertisement?
Version 1
7
A) reminder B) competitive C) pioneering D) institutional E) differentiation
24) Competitive advertisements that show the relative strength of one brand over another are referred to as________Blank advertisements. A) advocacy B) competitive C) reminder D) comparative E) differentiation
25)
A comparative ad A) reinforces previous knowledge of a product. B) assures current users they made the right choice. C) promotes a specific brand’s features and benefits. D) tells people what a product is, what it can do, and where it can be found. E) shows one brand’s strengths relative to those of competitors.
26)
Comparative advertisements
Version 1
8
A) now constitute over 90 percent of all television ads. B) often attract more consumer attention for the advertiser’s brand. C) can decrease the perceived quality of the advertiser’s brand. D) have been banned by the Federal Trade Commission. E) can, and often do, cause more harm than good.
27)
Comparative advertisements A) are illegal in the United States. B) are disliked by most consumers and thus attract negative attention for the advertiser’s
brand. C) need market research to provide legal support for their claims. D) are a form of institutional advertising. E) are rarely constructed to be persuasive.
28) A recent Progressive ad highlights its competitive rates compared to other auto insurers. What type of product advertisement is the Progressive ad? A) reminder B) pioneering C) reinforcement D) comparative E) causal
29) A recent Samsung Galaxy ad highlighted the advantages of its smartphone relative to Apple’s iPhone. What type of product advertisement is the Samsung ad?
Version 1
9
A) reminder B) pioneering C) reinforcement D) comparative E) publicity
30) A Fidelity Investments ad highlights the advantages of its online trading service relative to Schwab, E*TRADE, and TD Ameritrade. What type of product advertisement is the Fidelity Investments ad? A) reminder B) pioneering C) reinforcement D) comparative E) parallel
31) An ad for Citrucel fiber supplement claimed that in a blind taste test, consumers preferred the taste of Citrucel to Metamucil two to one. This ad is an example of________Blank advertising. A) reinforcement B) comparative C) persuasive D) informative E) reminder
32) Advertisements that reinforce previous knowledge of a product are referred to as________Blank advertisements.
Version 1
10
A) advocacy B) comparative C) persuasive D) informative E) reminder
33)
A reminder ad A) reinforces previous knowledge of a product. B) states the position of a company on an issue. C) promotes a specific brand’s features and benefits. D) tells people what a product is, what it can do, and where it can be found. E) shows one brand’s strengths relative to those of competitors.
34) Reminder advertisements are especially effective for products in which stage of their product life cycle? A) introduction B) harvesting C) maturity D) growth E) decline
35) A Duracell print ad shows a Christmas gift with the tagline “Tip: Don’t forget the batteries!” making it what type of product advertisement?
Version 1
11
A) pioneering B) reminder C) reinforcement D) comparative E) competitive
36) Floras & Bouquets placed a print ad with the tagline “Valentine’s Day is coming! Don’t forget the flowers!” making it what type of product advertisement? A) pioneering B) reminder C) comparative D) reinforcement E) competitive
37) A popular local car dealership runs television commercials in the fall featuring vehicles driving in deep snow and recommends its services to winterize cars and trucks before the snow falls. Which type of ad is this? A) seasonal B) subliminal C) reminder D) pioneering E) comparative
38)
Reinforcement ads are reminder ads that
Version 1
12
A) assure current users they made the correct choice in choosing the product. B) reinforce previous knowledge of a product. C) repeat ad campaigns that have been used before in order to remind consumers of how good the ads were. D) reaffirm a company’s position on an issue of importance or interest. E) reassure the company it has made the right choice in advertising the product.
39) The Dial Soap ad with the tag line, “Aren’t you glad you use Dial? Don’t you wish everybody did?” is an example of which type of advertising? A) fear appeal B) competitive C) pioneering D) institutional E) reinforcement
40) An ad for Campbell’s soup reads, “We haven’t changed that great taste your family’s always loved.” This is an example of________Blank advertising. A) advocacy B) comparative C) pioneering D) informative E) reinforcement
41) Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service are referred to as________Blank advertisements.
Version 1
13
A) product B) public service C) institutional D) reminder E) repositioning
42) The objective of institutional advertisements is to________Blank rather than promote a specific product or service. A) generate support for nonprofit organizations B) increase frequency of purchase of new products C) tout the competitive advantages of one industry over another D) build goodwill or an image for an organization E) promote alternative uses for a product class
43) ________Blank advertising is often used to support the public relations plan or counter adverse publicity. A) Institutional B) Reminder C) Competitive D) Pioneering E) Objective
44)
Which of these is one of the commonly used forms of institutional advertising?
Version 1
14
A) sustainable B) persuasive C) philanthropic D) informational E) advocacy
45)
All of these are alternative forms of institutional advertisementsexcept which? A) competitive B) public service C) reminder D) pioneering E) advocacy
46)
The purpose of an advocacy advertisement is to A) promote a specific brand’s features and benefits. B) tell people what a company is, what it can do, and where it is located. C) state the position of a company on an issue. D) reinforce previous knowledge of a product. E) promote the advantages of one product class over another.
47) Chevron placed an ad with copy reading “Protecting the planet is everyone’s job. We Agree.” that encouraged consumers to use renewable energy. Which type of advertising was Chevron using?
Version 1
15
A) reminder B) competitive C) pioneering D) advocacy E) objective
48) When the Lorillard Tobacco Co. places ads discouraging teenagers from smoking, the firm is using which type of advertising? A) pioneering B) competitive C) reminder D) comparative E) advocacy
49) A Budweiser ad, as part of its “Responsibility Matters” campaign, promotes responsible drinking by encouraging the use of designated drivers. This ad is an example of a(n)________Blank advertisement. A) pioneering B) competitive C) reminder D) political E) advocacy
50)
The purpose of pioneering institutional advertisements is to
Version 1
16
A) promote a specific brand’s features and benefits. B) inform people what a company is, what it can do, and where it is located. C) state the position of a company on an issue. D) reinforce previous knowledge of a product. E) promote the advantages of one product class over another.
51) An advertisement that informs people what a company is, what it can do, and where it is located is referred to as a(n) A) competitive institutional advertisement. B) competitive product advertisement. C) reminder institutional advertisement. D) advocacy institutional advertisement. E) pioneering institutional advertisement.
52) Recent Bayer ads stating, “We cure more headaches than you think,” are intended to inform consumers that the company produces many products in addition to aspirin. What type of ad is this? A) pioneering institutional advertisement B) competitive institutional advertisement C) advocacy institutional advertisement D) reminder institutional advertisement E) subliminal institutional advertisement
53) When Philip Morris changed its name to Altria, it ran________Blank institutional ads to inform consumers.
Version 1
17
A) competitive B) advocacy C) pioneering D) reminder E) stakeholder
54) Bridgestone uses________Blank institutional ads in its “One Team. One Planet” campaign to inform people about its rubber tree farms, tire recycling, and environmentally friendly factories. A) competitive B) pioneering C) advocacy D) reminder E) political
55)
The purpose of competitive institutional advertisements is to A) promote a specific brand’s features and benefits. B) tell people what a company is, what it can do, and where it is located. C) state the position of a company on an issue. D) reinforce previous knowledge of a product. E) promote the advantages of one product class over another.
56) America’s dairy farmers and milk processors use their “Got Milk?” campaign to increase demand for milk as it competes against other beverages. This campaign consists of________Blank ads.
Version 1
18
A) competitive institutional B) competitive product C) advocacy D) pioneering product E) pioneering institutional
57) Visit California is responsible for promoting tourism in the state and recently ran a successful ad called “Average Joes” to share lifestyle attributes that are popular there. This is an example of which type of advertising? A) reminder institutional B) competitive institutional C) pioneering institutional D) product advocacy E) product differentiation
58) The State of Florida Department of Citrus developed the “To Your Health” campaign to show the benefits of orange juice. The goal of these ads is to increase demand for orange juice as it competes with other beverages. This is an example of a________Blank advertisement. A) competitive product B) product advocacy C) competitive institutional D) pioneering product E) pioneering institutional
59) The Beef Council promoted a series of ads in which the tagline was “Beef—it’s what’s for dinner.” The purpose of these ads was to encourage the audience to eat more beef. This type of ad is a(n)
Version 1
19
A) reminder institutional ad. B) pioneering institutional ad. C) product institutional ad. D) competitive institutional ad. E) advocacy ad.
60)
The purpose of reminder institutional advertisements is to A) promote a specific brand’s features and benefits. B) tell people what a company is, what it can do, and where it is located. C) state the position of a company on an issue. D) bring the company’s name to the attention of the target market again. E) promote the advantages of one product class over another.
61) The U.S. Army sponsors advertising meant to get potential recruits to think about opportunities with the organization that they already know exist. This is an example of a(n)________Blank advertisement. A) competitive institutional B) competitive product C) advocacy D) pioneering product E) reminder institutional
62) An ad for Mercedes-Benz automobiles showed a heart-shaped box of chocolates with one of the chocolates topped with the well-recognized Mercedes logo. There was no mention of the company name nor any sign of a product in the ad. This ad was an example of________Blank advertising.
Version 1
20
A) competitive institutional B) competitive product C) advocacy D) pioneering product E) reminder institutional
63)
The first decision in developing an advertising program is to A) set the budget. B) specify the advertising objectives. C) identify the target audience. D) select the appeal. E) select the media.
64) All of these are aspects of identifying the target audience for an advertisementexcept which? A) The scheduling of the advertising can depend on the target audience. B) Identifying the target audience is the first step in developing an advertising program. C) The placement of the advertising depends on the target audience. D) The size of the advertising budget should dictate the target audience. E) Understanding the lifestyles, attitudes, and demographics of the target market is essential.
65) When developing the advertising program, specifying________Blank helps advertisers with other choices in the process such as selecting media and evaluating a campaign.
Version 1
21
A) product or service features B) time constraints C) pricing constraints D) segmentation methods E) advertising objectives
66) When developing the advertising program, specifying the advertising objectives helps advertisers with other choices in the process such as selecting media and A) identifying the target audience. B) evaluating a campaign. C) designing the advertising. D) pretesting the advertising. E) scheduling the advertising program.
67) In 2000, a 30-second ad during the Super Bowl cost $2.1 million. By 2021, the cost had more than doubled to $5.6 million for a 30-second spot. The most likely reason for the escalating cost is that A) the number of TV viewers of the Super Bowl has become very large. B) the ads are much more elaborate and therefore more expensive to produce. C) the NFL knows advertisers will pay anything it wants. D) the ad agencies have dramatically increased their creative and production fees. E) the companies that create Super Bowl ads do not have to run any other ads all year.
68) ________Blank ads are expensive but effective: Jeep’s “The Middle” ad featuring Bruce Springsteen led to 27,000 mentions on Twitter the day after it aired and Cheetos, Doritos, and Indeed created 200 million “engagements” with augmented reality lenses on Snapchat.
Version 1
22
A) Reinforcement B) Online C) Super Bowl D) Competitive E) Cooperative
69) An advertising message usually focuses on the________Blank of the product that are important to a prospective buyer in making trial and adoption decisions. A) emotional aspects B) price points C) psychological aspects D) financial risks E) key benefits
70)
Most advertising messages are made up of two elements, which are A) rhetorical and persuasive. B) informational and persuasive. C) functional and creative. D) functional and persuasive. E) creative and rhetorical.
71) Information and persuasive content can be combined to form which common advertising appeals?
Version 1
23
A) sex, fear, and humor appeals B) guilt, financial risk, and self-esteem appeals C) joy, fear, and self-worth appeals D) demographic, psychographic, and lifestyle appeals E) gender, ethnicity, and reference group appeals
72) The type of appeal used to suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or service, a change in behavior, or a reduction in the use of a product is referred to as a(n) A) authoritarian appeal. B) coercive appeal. C) consequence appeal. D) guilt appeal. E) fear appeal.
73)
Which of these is an important guideline when using a fear appeal?
A) Ensure the advertisement is still appropriate for viewing by children. B) Make the appeal so strong that it appears humorous. C) Don’t make the appeal so strong that consumers will want to tune out the advertisement. D) Avoid any reference to death or dying. E) Make sure to emphasize that the outcome rests in the viewers’ hands.
74) The World Wide Fund for Nature sponsors an ad showing a person morphing into a fish with the caption, “Stop Climate Change before It Changes You.” This is an example of which type of appeal?
Version 1
24
A) reminder B) fear C) sex D) pioneering E) guilt
75) A testimonial ad for a First Alert carbon monoxide (CO) detector features parents who are discussing the dangers of carbon monoxide poisoning and how purchasing and using the advertised product can avert disaster. Such advertisements use A) compassionate appeals. B) guilt appeals. C) family appeals. D) fear appeals. E) coercive appeals.
76) Life insurance companies like Prudential hope to get you to worry about how your loved ones will provide for themselves once you have passed away. They paint a very gloomy picture of the possible consequences of not having life insurance, and they make a point of recommending that you act immediately because you never know when it is going to be too late. This is an example of a A) fear appeal. B) rhetorical appeal. C) life-cycle appeal. D) humorous appeal. E) security appeal.
77) When the Office of National Drug Control Policy ran an ad with the headline “Marijuana harmless? Didn’t see the merging truck.” it was using which type of ad appeal?
Version 1
25
A) humor B) fear C) sex D) nostalgic E) guilt
78) The type of appeal used to suggest to the audience that the product will increase the attractiveness of the user is referred to as a(n) A) authoritarian appeal. B) coercive appeal. C) flattery appeal. D) fear appeal. E) sex appeal.
79)
A potential problem with using sex appeals in advertising is that
A) what men find sexy, most women do not, and vice versa. B) ads using sex appeal do not attract as much attention as those using other appeals. C) sex in advertising typically appeals to only younger audiences. D) an ad using sex appeal does not always lead to changes in recall, recognition, or purchase intent. E) sex in advertising alienates too large a segment of typical audiences.
80)
Which of these is leading to changes in advertising using sex appeals?
Version 1
26
A) evolving views on gender identify B) modernization of state and local laws regarding indecency C) creation of a uniform standard of beauty D) loss of consumer attention for sexual content E) Millennial’s preference for technology over the human form
81)
All of these statements are true about using sex appeals in advertising except which?
A) Sexual content is most effective when there is a strong fit between the use of a sex appeal in the ad and the image and positioning of the brand. B) Sex appeals increase attention by helping advertising stand out in today’s cluttered media environment. C) Sexual content in ads does not always lead to changes in recall, recognition, or purchase intent. D) Sex appeals can be found in almost any product category, from automobiles to toothpaste. E) Advertisers must be sure that a sex appeal is strong enough to get the audience’s attention but not so strong that it will lead them to tune out the message.
82) When bebe, a contemporary women’s clothing store, uses pictures in its advertising to “attract customers who are intrigued by the playfully sensual and evocative imagery of the bebe lifestyle,” it is using which type of advertising appeal? A) reminder B) fear C) sex D) guilt E) self-esteem
Version 1
27
83) An ad for Hydroxycut, a dietary supplement sold as a weight loss aid, depicts a handsome man with an open shirt with ripped abdominal muscles who claims that he “was shocked at how fast Hydroxycut worked” when he lost 27 pounds. This ad is using a(n) A) rhetorical appeal. B) sex appeal. C) humorous appeal. D) appeal to self-esteem. E) fear appeal.
84) The type of appeal used to imply either directly or subtly that the product is more fun or exciting than competitors’ offerings is referred to as A) authoritarian appeal. B) coercive appeal. C) energy appeal. D) humorous appeal. E) sex appeal.
85) GEICO ads that use a talking gecko, a group of robbers ordering a getaway car with an app, or a group of pigeons on a wire talking about GEICO are using which type of advertising appeal? A) reminder B) fear C) humor D) sex E) cognitive
86) they
While many commercials that use humorous appeals gain the attention of the audience,
Version 1
28
A) rely on celebrities so they are very expensive. B) contain no information to help consumers. C) rarely appeal to women. D) wear out quickly, losing the interest of consumers. E) don’t appeal to the Generation X cohort.
87)
One problem with humorous appeals is that A) their effectiveness may vary across cultures if used in a global campaign. B) they contain no information to help consumers. C) they can tarnish the image of the brand. D) they do not stand out in a cluttered advertising climate. E) they are usually only appropriate for millennials.
88) All of these statements are true about using humorous appeals in advertisingexcept which? A) Humorous content automatically improves the reach of an advertisement. B) Some studies suggest that humor wears out quickly, losing the interest of consumers. C) Humor’s effectiveness may vary across cultures if used in a global campaign. D) The use of humor is widespread in advertising and can be found in many product categories. E) Advertisers believe that humor improves the effectiveness of their ads.
89) The American Cancer Society reports that 57,000 Americans die from colon cancer each year, a number that would drop significantly if people over 50 were checked regularly. But being tested for colon cancer is not a pleasant experience and most people fear the possibility of bad news. The ACS sponsored several ads using “Polyp Man” dressed in a big red suit to encourage people to get tested. This is most likely an example of a________Blank appeal.
Version 1
29
A) humorous B) cognitive C) rhetorical D) fear E) sex
90) Using comedian Kevin Hart in Chase Freedom card ads rather than an unknown actor is an example of a popular form of advertising today, known as A) a reference group appeal. B) snob appeals. C) peer spokespersons. D) a sex appeal. E) celebrity spokespersons.
91) Leslie Mann and her real daughter Maude Apatow appear in a variety of Jergens ads to effectively convey messages about the skin care products. This is an example of the use of A) a reference group appeal. B) personal appeals. C) peer spokespersons. D) a sex appeal. E) celebrity spokespersons.
92)
The use of deceased celebrities such as John Wayne or Fred Astaire in commercials
Version 1
30
A) creates a humorous appeal. B) avoids the possibility of a spokesperson’s image changing. C) creates a fear appeal. D) targets the Gen Y consumer. E) creates a product ambience that limits its appeal to older consumers.
93) Lance Armstrong and Tiger Woods, both sports stars, lost contracts as celebrity spokespeople because A) their fees were too high. B) they changed their minds about appearing in ads, breaching their contracts. C) they received negative public attention. D) the image of the firms they represented had changed, becoming inconsistent with their own. E) the ads were not effective.
94) All of these are difficulties associated with creating an actual advertising messageexcept which? A) Translating the copywriter's ideas into an actual advertisement is a complex process. B) Shooting commercials in several locations and in several languages for global campaigns has increased. C) Replacing actors with computer-generated animation is ineffective since humans are best for developing an appeal. D) Designing quality artwork, layout, and production for advertisements is time consuming. E) Advertisers frequently need content for various platforms, including websites, online video channels, and digital place-based media.
Version 1
31
95) The means by which an advertising message is communicated to the target audience is known as A) advertising media. B) reach. C) the source. D) CPM. E) GRP.
96) Media selection decisions are related to the target audience, the type of product, the nature of the message, campaign objectives, available budget, and A) the capabilities of the advertising agency. B) audience preferences. C) the costs of alternative media. D) media spending by competitors. E) available airtime.
97) All of these are factors used to select a particular medium for an advertisementexcept which? A) available budget B) campaign objectives C) the costs of alternative media D) purchase frequency E) the type of product
98) Advertisers use a mix of media forms and vehicles to maximize the exposure of the message to the target audience while at the same time minimizing
Version 1
32
A) reach. B) frequency. C) costs D) ratings. E) appeal.
99) Advertisers use a mix of media forms and vehicles to maximize the________Blank of the message to the target audience while at the same time minimizing A) medium; effort. B) exposure; costs. C) rating; frequency. D) rating; share. E) CPM; GRP.
100) as
The number of different people or households exposed to an advertisement is referred to
A) scope. B) share. C) CPM. D) rating. E) reach.
101) Newspaper circulation and television ratings are measures of________Blank in advertising.
Version 1
33
A) reach B) share C) CPM D) scope E) ranking
102) The owners of a small bar and grill want to run an ad on local radio in the small town where the business is located. Their objective is to create awareness for the restaurant among the town’s consumers. Which of these measures should be used to determine how many different people will hear the advertisement? A) reach B) ranking C) GRPs D) CPM E) frequency
103) The percentage of households in a market that are tuned to a particular television show or radio station is referred to as A) gross rating points. B) CPM. C) reach. D) rating. E) share points.
104)
In television or radio advertising, rating refers to
Version 1
34
A) the number of different people or households exposed to an advertisement who then buy the offering that was advertised. B) the average number of times a person in the target audience is exposed to a message or advertisement. C) the percentage of households in a market that are tuned to a particular television or radio station. D) a commonly used reference number an advertiser calculates (reach multiplied by frequency) to determine whether it has achieved its advertising objectives. E) the percentage points of market share a firm garners for its advertisements relative to its competitors.
105) A local television station reported that one-fifth of the television households in your market were watching a special prime time movie on its TV channel during the 9 p.m. to 11 p.m. time period during the November “sweeps” period. What would be the movie’s rating? A) 10 B) 20 C) 30 D) 40 E) 50
106)
Frequency in advertising refers to the
A) number of different advertisements, sales promotions, or publicity events in an IMC campaign for a product or service. B) total number of times an advertisement is aired on television or radio. C) average number of times a firm airs an advertisement. D) number of times an advertisement can be shown before it begins to lose its effectiveness. E) average number of times a person in the target audience is exposed to an advertisement.
Version 1
35
107) The average number of times a person in the target audience is exposed to an advertisement is referred to as A) the exposure rate. B) GRPs. C) frequency. D) the coverage rate. E) CPM.
108) Because consumers often do not pay close attention to advertising and the messages are sometimes complex, advertisers want to reach the same audience more than once. This means that advertisers are concerned with A) frequency. B) CPM. C) reach. D) rating. E) gross rating points.
109) Lizzie binge-watched an entire season of a sci-fi series in a couple of days, watching through her cable provider’s on-demand services. She saw the same ads for CarMax and Verizon too many times to count. In advertising terms, CarMax and Verizon have achieved high________Blank with viewers of this program. A) reach B) frequency C) gross rating points D) cost per thousand E) ratings
Version 1
36
110) Advertising studies indicate that with repeated exposure to advertisements consumers respond more favorably to A) marketing channels. B) brand extensions. C) services from small provides. D) complex ideas. E) fad products.
111)
Gross rating points (GRPs) are determined by the formula A) reach multiplied by frequency. B) reach multiplied by rating. C) cost multiplied by frequency. D) cost divided by reach. E) cost divided by audience size times 1000.
112)
With respect to advertising, CPM is defined as
A) the cost of one medium relative to the costs of other media (e.g., direct mail versus television, radio, or outdoor), each of which are divided by the multiple of their respective reach and frequency. B) the reach multiplied by frequency divided by the cost of reaching 1,000 individuals or households. C) the cost of reaching 1,000 individuals or households with the advertising message in a given medium. D) the cost per minute of television or radio airtime. E) the number of consumers exposed to an advertising message, in thousands.
Version 1
37
113) The acronym that stands for the cost of reaching 1,000 individuals or households with the advertising message in a given medium is referred to as A) GRP. B) CPT. C) TMP. D) CPM. E) CT.
114)
One of the most common measures in advertising is cost per thousand A) impressions. B) occurrences. C) incidences. D) purchases. E) new trials.
115) One of the most common measures in advertising is cost per thousand impressions (CPM). The CPM is calculated as follows: A) CPM = (Advertising cost ($) ÷ Audience size) × 100. B) CPM = (Frequency ($) ÷ Audience size) × 1,000. C) CPM = (Frequency ($) ÷ Audience size) × 100. D) CPM = (Advertising cost ($) ÷ Audience size) × 1,000. E) CPM = (Advertising cost ($) ÷ Audience size) × 1,000,000.
116) If you ordered a TV commercial to run on a local TV program that could reach 500,000 households for a cost of $1,000, what would your CPM be?
Version 1
38
A) $0.50 B) $2.00 C) $2.50 D) $4.50 E) $5.00
117) Suppose the cost of a full-page color ad inUSA Today (newspaper) is $242,600 and its U.S. audience size is 609,826. The cost of a full-page color ad inTime (magazine) is $278,400 and has an audience size of 2,300,000. The cost of a 30-second ad on the most recent Super Bowl telecast is $5,600,000 and has an audience size of 91,600,000. Using this information, which metric should be used to determine the most efficient medium? A) reach B) frequency C) CPM D) rating E) GRP
118) Suppose the cost of an ad inThe Wall Street Journal (newspaper) is $327,897 and its U.S. audience size is 1,566,027. The cost of an ad inSports Illustrated (magazine) is $396,600 and has an audience size of 3,000,000. The cost of an ad in USA Today (newspaper) is $242,600 and its U.S. audience size is 711,812. The cost of an ad inTime (magazine) is $278,400 and has an audience size of 300,000. The cost of a 30-second ad on the most recent Super Bowl telecast is $5,600,000 and has an audience size of 99,900,000. Which of the five media alternatives has thelowest CPM? A) The Wall Street Journal B) USA Today C) Time D) Sports Illustrated E) Super Bowl
Version 1
39
119) Suppose the cost of an ad inThe Wall Street Journal (newspaper) is $327,897 and its U.S. audience size is 1,566,027. The cost of an ad inSports Illustrated (magazine) is $396,600 and has an audience size of 3,000,000. The cost of an ad inUSA Today (newspaper) is $242,600 and its U.S. audience size is 711,812. The cost of an ad inTime (magazine) is $278,400 and has an audience size of 300,000. The cost of a 30-second ad on the most recent Super Bowl telecast is $5,600,000 and has an audience size of 99,900,000. Which of the five media alternatives has thehighest CPM? A) The Wall Street Journal B) USA Today C) Bloomberg Businessweek D) Sports Illustrated E) Super Bowl
120)
According to the Marketing Dashboard, the CPM for Time would be approximately
Version 1
40
A) $53. B) $121. C) $132. D) $165. E) $229.
121) According to the Marketing Dashboard, the CPM for USA Today would be approximately
A) $53. B) $120. C) $132. D) $165. E) $229.
Version 1
41
122) According to the Marketing Dashboard, the CPM for the Super Bowl would be approximately
A) $53. B) $120. C) $132. D) $165. E) $229.
123)
One of the advantages associated with television as an advertising medium is that it A) has a short exposure time. B) is a low-cost medium. C) has an unlimited amount of advertising time available. D) can be used to convey complex messages. E) can use sight, sound, and motion.
124) The availability of streaming services has led to new trends in television viewing, including canceling pay-TV services, known as
Version 1
42
A) wasted coverage. B) cord-cutting. C) wireless TV. D) media freedom. E) binge watching.
125) The availability of streaming services has led to new trends in television viewing, including watching multiple episodes of a series in a short period of time, known as A) wasted coverage. B) cord-cutting. C) wireless TV. D) media freedom. E) binge watching.
126)
All of these statements about television as an advertising medium are trueexcept which?
A) Infomercials are increasingly popular because of the low average cost of a 30-minute block of television time. B) Many advertisers are now choosing less expensive “spot” ads, which run between programs, or 15-second ads, rather than the traditional 30- or 60-second lengths. C) Television advertising is preferred by many marketers because it is inexpensive. D) Viewers are increasingly time-shifting their viewing habits with DVRs, DVDs, and Internet and subscription services such as Netflix and Hulu. E) There are many opportunities for out-of-home TV viewing as televisions can be seen in many bars, hotels, offices, airports, and on college campuses.
127)
One of the disadvantages associated with television as an advertising medium is that it
Version 1
43
A) has a short exposure time. B) cannot target specific audiences. C) must use print for effect. D) has a limited amount of advertising time available. E) is not effective for conveying simple messages.
128) Many companies are now opting for commercial time on live events rather than programs that consumers might A) avoid because there are too many commercial interruptions. B) watch while multitasking. C) watch later on a DVR. D) believe are commercial-free. E) have seen previously.
129) When people outside the target market for the product see a firm’s advertisement, it is referred to as A) wasted coverage. B) media divergence. C) dual exposure. D) overexposure. E) advertising spillover.
130)
One way TV advertising can reduce wasted coverage is to
Version 1
44
A) identify the target market it wishes to address within the first three seconds of the commercial so the message can be ignored by nontargeted viewers. B) run shorter ads in a greater number of geographical areas. C) identify specific times of day or night when the target audience would be more likely to tune in. D) develop more creative ads so that more people will choose to see them. E) run the ads on less expensive specialized cable and satellite channels.
131) Program-length (30-minute) advertisements that take an educational approach to communication with potential customers are referred to as A) advertorials. B) infomercials. C) advermercials. D) edutainment ads. E) extended advertising messages.
132)
An infomercial is
A) a public service announcement used to notify local citizens of impending danger due to weather or other natural disasters. B) a form of advertisement whose sole purpose is to entertain. C) a program-length (30-minute) advertisement that takes an educational approach to communication with potential customers. D) a direct response TV and radio ad that airs during the late night or weekend mornings. E) educationally formatted programming that consumers order privately by using the “on demand” services of their cable providers.
133)
One of the advantages associated with radio as an advertising medium is that it
Version 1
45
A) can target specific audiences. B) has a long exposure time. C) has a perishable message. D) has an unlimited amount of advertising time available. E) is relatively simple to convey complex messages.
134)
One of the disadvantages associated with radio as an advertising medium is that it A) has a long exposure time. B) cannot target specific audiences. C) has a perishable message. D) cannot use humor, sound, and intimacy effectively. E) is criticized as a traffic hazard.
135) A western clothing retail store marketing vice president is developing an advertising budget using the objective and task method. She has the objective of clearing slow-moving merchandise from her shelves and is trying to choose between using radio ads or newspaper ads. Which of these is an advantage of radio relative to newspapers as a medium for achieving the objective? A) better frequency B) more effective visuals C) saving of ads by consumers D) better segmentation capability E) more effective in conveying complex information
136)
Which of these is an advantage of using magazines as an advertising medium?
Version 1
46
A) It takes a relatively short time to place a magazine ad. B) The cost of placing a magazine ad is very low. C) A magazine ad has a long life. D) With magazines, noise is eliminated from the communications process. E) A magazine achieves high public visibility.
137)
One disadvantage of using magazines as an advertising medium is the A) need to craft a simplistic message. B) long lead time needed to place an ad. C) perishable message. D) unproven nature of its effectiveness. E) lack of full-color, quality materials.
138) Recent studies comparing advertising in different media suggest that magazine advertising A) takes a relatively short time to read. B) incorporates four-color graphics too frequently. C) usually has little competition with other media features. D) is quickly replacing television advertising. E) is perceived to be more inspirational than other media.
139)
All of these statements are true about magazinesexcept which?
Version 1
47
A) The magazine with the highest circulation isAARP The Magazine. B) Consumer interests can be difficult to translate into a magazine theme, resulting in many magazine failures each year. C) National publications publish regional and even metro editions to reduce wasted coverage. D) Most magazines are dropping their print formats to offer only online versions that can be viewed on tablet devices or smartphones. E) Time magazine publishes both geographic and demographic editions in the United States.
140) Trice Jewelers is a high-end independent jeweler located in Milwaukee. It specializes in custom jewelry and has been in business for decades. Which medium would be the best for Trice to use to reach its loyal customers with colorful long-lasting images, reminding them that Trice is the source for all their gift-giving needs? A) prime-time national television B) magazines targeted toward wealthy residents of Milwaukee C) radio stations that target millennials D) flyers sent to all the Milwaukee zip codes E) Milwaukee regional newspapers
141)
One advantage of using newspapers as an advertising medium is A) the ability to cover local markets. B) the long lead time for placing an ad. C) the long life span. D) the relatively high cost. E) competition for reader attention with other features in the newspaper.
142)
An advantage of newspapers advertising is
Version 1
48
A) the ability to use lifestyle segmentation. B) the short lead time for placing an ad. C) excellent color graphics. D) minimum distraction from other features. E) extended life span.
143)
One disadvantage of using newspapers as an advertising medium is A) their inability to cover local markets. B) readers damage the newspaper when clipping its ads. C) their short life span. D) the high cost of ads. E) their quick consumer response.
144)
All of these statements about newspapers are trueexcept which?
A) Local retailers often use newspapers as their sole advertising medium. B) Newspapers are generally limited to ads that call for an immediate customer response. C) National advertising campaigns rarely include this medium except in conjunction with local distributors of their products. D) A long lead time is needed to place an ad in a local newspaper. E) Newspapers have excellent reach potential.
145) National advertising campaigns rarely include newspapers unless in conjunction with local distributors of their products. Exceptions to this would be print versions of
Version 1
49
A) The National Enquirer and The National Review. B) The Wall Street Journal and USA Today. C) The Daily Beast and The National Enquirer. D) The Chicago Tribune and the Los Angeles Times. E) The Christian Science Monitor and The Huffington Post.
146)
The Wall Street Journal andUSA Today each have a national distribution of more than A) 800,000 readers. B) 2.8 million readers. C) 5.8 million readers. D) 20.8 million readers. E) 50.8 million readers.
147)
Which of these is a trend that influences newspapers today? A) There is growth in digital versions of printed newspapers. B) Newspapers are enjoying increasing circulation. C) Newspapers are increasing the number of printed pages. D) More cities are increasing the number of newspapers that are available. E) Cheaper newsstand prices have rekindled an interest in newspapers.
148)
One advantage of using directories as an advertising medium is A) there is no competition. B) the print pages are quicker and easier to use than the Internet. C) they are more mobile than other information sources. D) they have excellent coverage of rural and older segments. E) there are no delivery costs.
Version 1
50
149)
One disadvantage of using directories as an advertising medium is that A) there is public concern over environmental impact of print versions. B) the marketer cannot control the exact message that is published. C) the ads are perishable. D) few households with telephones have them. E) they have high delivery costs.
150)
One advantage of using the Internet as an advertising medium is that
A) there is no need to segment markets. B) it has video and audio capabilities similar to television. C) there are no real costs except computers used for initial encoding. D) online ads almost always result in a “click,” an action that leads to the purchasing of a product. E) there is a long life span for the ads.
151)
One advantage of using the Internet as an advertising medium is that A) the perishability of the message. B) messages are automatically translated saved to a viewer’s hard drive. C) advertising can link directly back to the advertiser. D) there are no real costs except computers used for initial encoding. E) uniform reach among all target markets.
152) On the Internet you may find interactive ads that have drop-down menus, built-in games, or search engines to engage viewers, which are referred to as
Version 1
51
A) rich media. B) banner ads. C) interactive media. D) pay-per-click ads. E) infotainment ads.
153)
There are a variety of online advertising options. The most popular are A) free search, classifieds, interactives, and interstitials. B) free search, banner ads, spamming, and video. C) wikis, RSS feeds, interstitials, and cookies. D) paid search, banner ads, classified ads, and video. E) pop-ups, paid search, streaming video, and spamming.
154) ________Blank is one of the fastest-growing forms of Internet advertising, as approximately 80 percent of all Internet traffic begins at a search engine such as Google, Bing or Verizon's OneSearch. A) Interstitials B) Rich media C) Paid search D) Spam E) Wikis
155) Because of consumer “banner blindness,” the current click-through rate is________Blank percent.
Version 1
52
A) 0.01 B) 0.1 C) 1 D) 5 E) 10
156) The broad set of interactive messaging options that enable organizations to communicate and engage with consumers through any mobile device is known as A) mobile marketing. B) online advertising options. C) paid search options. D) click fraud prevention. E) national online campaigns.
157)
One disadvantage of using the Internet as an advertising medium is that
A) as a relatively new medium, it has attracted limited use. B) it is difficult to translate messages that can be used in social media networks such as Facebook and Twitter. C) it can be complicated with many search, display, and payment options. D) it often creates more traffic than a firm can actually handle. E) pay-per-click search ads on Google are expensive and ineffective.
158)
Which statement about online advertising is most accurate?
Version 1
53
A) It is easy to measure the impact of online advertising. B) Although annoying, click fraud and web-tipping are not causing real financial damage. C) Although they are popular for younger generations, few baby boomers can be reached with online ads. D) Though all online ads may not result in “clicks,” studies show they can still result in higher purchases and website traffic. E) “Clickbots” can help eliminate fraud in online advertising.
159) The deceptive clicking of ads solely to increase the amount advertisers must pay is referred to as A) deceptive advertising. B) click fraud. C) web-tipping. D) click-theft. E) click-botting.
160)
A form of click fraud is called PTR, which is an acronym for A) Paid-to-Read. B) Ping-to-Read. C) Profit-to-Read. D) Place-to-Read. E) Priced-to-Read.
161) Software programs called________Blank are a form of click fraud where the software is used to produce automatic clicks on ads.
Version 1
54
A) click spiders B) click bots C) click spam D) click bait E) click tippers
162) ________Blank have the largest shares of Internet searches and offer opportunities for online advertising. A) Google and AOL B) Google and YouTube C) Google and Ask.com D) Google and Microsoft E) Google and Snapchat
163) Click fraud can occur when legitimate website visitors click on ads without any intention of looking at the advertiser’s site to keep the original site visited free. This practice is called A) click funding. B) click spam. C) click-botting. D) web tipping. E) web crawling.
164)
The most common form of outdoor advertising is
Version 1
55
A) transit. B) point-of-purchase display. C) the billboard. D) the kiosk. E) in-store signage.
165)
One advantage of using a billboard as an advertising medium is that it A) is environmentally friendly. B) has universal appeal. C) is particularly suited to national campaigns. D) has good local reach and frequency. E) is especially effective for persuasive advertisements.
166)
Which statement regarding billboards is most accurate?
A) Billboards are a good supplemental reinforcement for well-known products. B) Billboards are well-suited for pioneering product advertising. C) Contrary to popular belief, billboards are not driving hazards since they help keep drivers alert. D) Billboards are often too expensive for small local firms and are better suited for national campaigns. E) Billboards are more effective in rural areas than in metropolitan ones.
167) Messages on the interior and exterior of buses, subway cars, light-rail cars, and taxis are referred to as
Version 1
56
A) transportation messaging. B) public service announcements. C) transit advertising. D) public advertising. E) vehicular advertising.
168)
Which statement regarding transit advertising is most accurate?
A) The growth in mass transit is declining in major cities. B) In heavy travel times, when audiences are the largest, transit advertising is not conducive to reading advertising copy. C) Selectivity in transit advertising is unavailable to advertisers that want to buy space by neighborhood or bus route. D) Transit advertising is creating safety hazards as people are busy reading the copy and not paying attention while driving. E) Transit advertising is a form of indoor advertising in stadiums, arenas, etc.
169) Buses in some cities are often completely painted as an ad for a particular product. The entire bus may be purple, orange, or lime green with the message painted on screens that cover the windows as well as the body of the bus. These ads are examples of A) transit advertising. B) mobile advertising. C) motorized billboards. D) mobile signage. E) transportation advertising.
170) Orlando uses a wireless system to receive advertising for flat-screen monitors mounted in its buses. These ads are examples of
Version 1
57
A) mobile advertising. B) place-based billboards. C) mobile signage. D) transit advertising. E) transportation advertising.
171)
Conditional content is an opportunity for marketers that use________Blank billboards. A) transit B) personal C) digital D) public E) 3-D
172) Digital billboards allow advertisers to quickly present________Blank ads, which are based on current events, weather, business conditions, etc. A) local and national news B) public service announcements C) conditional content D) point-of-purchase E) infomercial
173)
Nontraditional advertising options found in airports, health clubs, and theaters are called
Version 1
58
A) remote media. B) electronic advertising. C) product placements. D) cooperative advertising. E) place-based media.
174) Several hospitals placed signs on the inside door of bathroom stalls in their ladies’ restrooms encouraging women to seek help if they are being abused. The signs included information and contact numbers for immediate help. This is an example of A) remote media. B) social network advertising. C) place-based media. D) advocacy advertising. E) cooperative advertising.
175) Which of these is one of three key factors when selecting the media for an advertising campaign? A) the perceived risk B) the sustainability of the message C) the reputation of the prospective media firm D) the media habits of the target audience E) the length of time required to get the message across
176)
In terms of scheduling advertising, buyer turnover refers to
Version 1
59
A) the amount of time between repeat purchases for a given product. B) how often new buyers enter the market to buy a product. C) the amount of time for a buyer to enter and exit a product’s life cycle. D) how often a consumer will try competitive brands before becoming a brand-loyal customer of the firm’s product. E) the ratio of repeat purchases to the number of buyers for an offering.
177)
Purchase frequency is related to the scheduling of advertising how?
A) Flighting advertising schedules are best for converting brand-loyal and frequent customers of the firm’s product. B) Frequent advertising can depress the number of times a buyer purchases a product during its life cycle. C) Advertising regularly is the best method to prevent a consumer from trying competitive brands. D) How frequently a product is purchased is independent of the advertising schedule. E) The more frequently the product is purchased, the less advertising repetition is required.
178) In terms of scheduling advertising, the speed with which buyers fail to recall a brand if advertising is not seen is referred to as A) buyer turnover. B) the frequency rate. C) the brand awareness rate. D) the forgetting rate. E) the recall dissipation rate.
179)
The three approaches to setting advertising schedules are
Version 1
60
A) flexible, seasonal, and continuous. B) spontaneous, continuous, and intermittent. C) continuous, flighting, and pulse. D) day time, prime time, and off-peak. E) sporadic, intermittent, and infrequent.
180) A basic approach to scheduling when seasonal factors are unimportant and advertising is run at a constant or steady schedule through the year is referred to as a________Blank schedule. A) continuous B) flighting C) pulse D) phased E) constant
181)
Continuous scheduling would most likely be used for advertising A) fishing rods. B) bathing suits. C) gardening supplies. D) bathroom cleaning supplies. E) children’s toys.
182) A basic approach to scheduling in which periods of advertising are scheduled between periods of no advertising to reflect seasonal demand is referred to as a________Blank schedule.
Version 1
61
A) steady B) flighting C) dripping D) pulsing E) burst
183)
Flighting schedules would most likely be used for advertising A) snowboards. B) automobiles. C) bottled water. D) toothpaste. E) bathroom cleaner.
184) A flighting schedule combined with a steady schedule because of increases in demand, heavy periods of promotion, or introduction of a new product is referred to as a(n) A) continuous schedule. B) phased schedule. C) pulse schedule. D) turnover schedule. E) intermittent schedule.
185) Some studies show that________Blank schedules are superior to other advertising strategies.
Version 1
62
A) flighting B) continuous C) opportunistic D) pulsing E) intermittent
186)
Pulse scheduling would most likely be used for advertising A) bathroom cleaning supplies. B) breakfast cereal. C) socks. D) motor oil. E) board games.
187) Tests conducted before an advertisement is placed in any medium to determine whether the advertisement communicates the intended message or to select among alternative versions of the advertisement are referred to as A) posttests. B) pretests. C) test screenings. D) aided recall testing. E) sales tests.
188)
Pretests are
Version 1
63
A) tests conducted before an advertisement is placed in various media to determine which medium best reaches its intended target market. B) tests conducted among company personnel to determine which advertising campaign most closely matches the firm’s goals and objectives. C) tests conducted with an advertisement for a product to prospective consumers under realistic purchase conditions to see if they will buy. D) tests conducted before an advertisement is placed in any medium to determine whether the advertisement communicates the intended message or to select between alternative versions of the advertisement. E) sample ad campaigns submitted by competing advertising agencies before receiving a formal contract for that account.
189) Because advertising is expensive, marketers want to be confident that the advertisements they run communicate the intended message to the target audience. In order to accomplish this communication goal, marketers conduct________Blank before advertisements are placed in a medium. A) pretests B) double blind tests C) efficacy trials D) aided recall tests E) sales tests
190) In a________Blank, the test ad is placed in a collection with several other ads, and consumers are asked to read through the collection. Afterward, subjects are asked for their impressions of the ads on several evaluative scales. A) theater test B) range test C) group test D) portfolio test E) jury test
Version 1
64
191) Showing ad copy to a panel of consumers and having them rate how they liked it, how much it drew their attention, and how attractive they thought it was, takes place during A) focus groups. B) portfolio tests. C) jury tests. D) theater tests. E) performance tests.
192) A test where consumers are invited to view new television shows or movies in which test commercials are also shown is called a(n) A) sales test. B) jury test. C) theater test. D) attitude test. E) portfolio test.
193)
The most sophisticated form of pretest is the A) portfolio test. B) sales test. C) attitude test. D) theater test. E) jury test.
194) A(n)________Blank is an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production. Version 1
65
A) turnkey agency B) complete spectrum agency C) multi-service agency D) in-house agency E) full-service agency
195)
A limited-service agency A) provides the most complete range of services. B) is compensated by a contractual agreement. C) provides a range of services from limited to full. D) avoids an integrated marketing approach. E) engages only in social media strategies.
196)
An in-house agency A) provides the most complete range of services. B) is compensated by a contractual arrangement. C) may provide a range of services from limited to full. D) avoids an integrated marketing approach. E) engages only in social media strategies.
197)
A full-service advertising agency is
Version 1
66
A) an advertising agency that not only provides a complete range of services, including market research, media selection, copy development, artwork, and production, but it also has input into actual product design. B) an advertising agency that specializes in one aspect of the advertising process such as developing advertising copy or providing social media services. C) an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production. D) a firm that is large enough to carry its own in-house advertising staff to provide all advertising services the company needs. E) one that sets a firm’s advertising objectives, designs the market research, recommends media selection, suggests copy development and artwork, and then allows the firm to implement the recommendations itself.
198) Though the most common form of compensation is a fee-based model, a(n)________Blank may also be compensated with a commission-based or an incentive-based model. A) full-service agency B) in-house agency C) modified-service agency D) promotional firm E) limited-service agency
199) Advertising agencies that specialize in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media (media agencies), or providing Internet services (Internet agencies), are referred to as A) full-service agencies. B) in-house agencies. C) modified-service agencies. D) functional agencies. E) limited-service agencies.
Version 1
67
200)
A limited-service agency is
A) an advertising agency that not only provides a complete range of services, including market research, media selection, copy development, artwork, and production, but it also has input into actual product design. B) an advertising agency that specializes in one aspect of the advertising process, such as developing advertising copy or providing Internet services. C) an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production. D) a firm that is large enough to carry its own in-house advertising staff to provide all advertising services the company needs. E) one that sets a firm’s advertising objectives, designs the market research, recommends media selection, suggests copy development and artwork, and then allows the firm to implement the recommendations to save the firm money.
201) An advertising agency that deals in creative work and is compensated by a contractual agreement for the services performed is referred to as a(n) A) full-service agency. B) in-house agency. C) modified-service agency. D) limited-service agency. E) sales promotion firm.
202) When a company uses a(n)________Blank, it is using its own advertising staff to provide the promotional services needed by the company.
Version 1
68
A) intra-firm agency B) promotion department C) in-house agency D) full-service agency E) limited-service agency
203) Tests conducted after an advertisement has been shown to the target audience to determine whether an ad accomplished its intended purpose are referred to as A) jury testing. B) tracking tests. C) exposure testing. D) posttesting. E) pretesting.
204)
All of these are examples of posttestsexcept which? A) inquiry test B) sales test C) attitude test D) unaided recall test E) jury test
205)
There are five common approaches to posttests, including which of these?
Version 1
69
A) unaided recall B) jury tests C) tracking tests D) performance tests E) comparison tests
206) An aided recall posttest designed to determine the percentages of those who remember seeing a specific magazine ad, who saw or read any part of the ad identifying the product or brand, who read any part of the ad’s copy, and who read at least half of the ad, is a(n) A) attitude test. B) prompted response test. C) inquiry test. D) concept test. E) Starch test.
207)
The Starch test is an example of a(n) A) sales test. B) unaided recall test. C) aided recall test. D) inquiry test. E) concept test.
208) The Starch test uses a(n)________Blank to determine the percentages of those who remember seeing a specific magazine ad, who saw or read any part of the ad identifying the product or brand, who read any part of the ad’s copy, and who read at least half of the ad.
Version 1
70
A) attitude test B) prompted response test C) aided recall test D) inquiry test E) concept test
209) The Starch test uses aided recall to determine the percentage of those who did which of these? A) felt the ad was vague or ambiguous B) felt elements of the ad were inappropriate C) could summarize the key ad points in their own words D) remembered seeing a specific magazine ad E) had already tried the product
210) A researcher asked Kelly, as a subscriber toFitness magazine, which ads she remembered seeing in the most recent issue. Then Kelly was asked questions about the content and appearance of the ads she remembered. The researcher was using________Blank to test the effectiveness of ads in the magazine. A) inquiry testing B) concept testing C) portfolio testing D) aided recall E) unaided recall
211)
Which statement about inquiry tests is most accurate?
Version 1
71
A) In inquiry tests, a question such as, “What ads do you remember seeing yesterday?” is asked of respondents without any other prompting to determine whether they saw or heard advertising messages. B) In inquiry tests, additional product information, product samples, or premiums are offered to an ad’s readers or viewers, and ads generating the most requests are presumed to be the most effective. C) Inquiry tests involve studies such as controlled experiments and consumer purchase tests. D) In an inquiry test, respondents are asked questions to measure changes in their attitudes after an advertising campaign, such as whether they had a more favorable attitude toward the product advertised. E) In an inquiry test, respondents are first shown an ad and then asked whether their previous exposure to it was through reading, viewing, or listening.
212)
Which statement about sales tests is most accurate?
A) In sales tests, additional product information, product samples, or premiums are offered to an ad’s readers or viewers, and ads generating the cost inquiries are presumed to be the most effective. B) In sales tests, a question such as, “What ads do you remember seeing yesterday?” is asked of respondents without any other prompting to determine whether they saw or heard advertising messages. C) Sales tests involve studies such as controlled experiments and consumer purchase tests to measure retail sales. D) In a sales test, respondents are asked questions to measure changes in their attitudes after an advertising campaign, such as whether they had a more favorable attitude toward the product advertised. E) In a sales test, respondents are first shown an ad and then asked whether their previous exposure to it was through reading, viewing, or listening.
213) Posttests that involve studies such as controlled experiments (e.g., using radio ads in one market and newspaper ads in another and comparing the results) and consumer purchase tests (measuring retail sales that result from a given advertising campaign) are examples of
Version 1
72
A) aided recall tests. B) unaided recall tests. C) attitude tests. D) sales tests. E) inquiry tests.
214) Sales promotion expenditures account for________Blank percent of all promotional spending. A) 5 B) 12 C) 18 D) 24 E) 33
215)
Consumer-oriented sales promotions are
A) sales tools like coupons and premiums used to support a company’s advertising and personal selling directed to ultimate consumers. B) promotions where charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. C) methods used to get a nonpersonal, indirectly paid presentation of a company or its products. D) advertisements that show actual consumers using the product. E) sales promotions that supplement advertising and personal selling but are directed to wholesalers, retailers, or distributors.
216) Sales tools like coupons and premiums used to support a company’s advertising and personal selling directed to ultimate consumers are referred to as
Version 1
73
A) trade-oriented sales promotions. B) manufacturers’ promotions. C) channel promotions. D) consumer-oriented sales promotions. E) reseller promotions.
217) Directed to ultimate consumers, consumer-oriented sales promotions are sales tools used to support a company’s A) advertising and public relations. B) advertising and personal selling. C) personal selling and public relations. D) personal selling and direct marketing. E) advertising and direct marketing.
218) When preparing to go shopping after the Christmas holidays, Christy actively scans the ads in the local newspaper for coupons and contests. While in the store, Christy also looks for free samples of new products and products she hasn’t purchased previously. The coupons, contests, and free samples are all examples of A) advertising. B) publicity. C) sales promotion. D) personal selling. E) direct marketing.
219) Sales promotions that usually offer an immediately discounted price to the consumer, which encourages trial of the product, are commonly referred to as
Version 1
74
A) deals. B) rebates. C) samples. D) coupons. E) premiums.
220)
For marketers, the primary objective of coupons is to A) increase foot traffic in supermarkets. B) encourage repeat purchases. C) encourage trial. D) retaliate against competitor’s actions. E) minimize brand-switching.
221)
All of these are true about couponsexcept which?
A) The majority of coupons are distributed as freestanding inserts in newspapers. B) Most coupons are now issued without an expiration date. C) Coupon usage among consumers is now fairly steady and quite popular. D) The online coupon redemption rate is higher than for paper coupons. E) Coupons generated at Internet sites and on mobile phones make up a very small proportion of all coupons.
222)
All of these statements are true about couponsexcept which?
Version 1
75
A) Couponing can reduce gross revenues by lowering the price paid by already-loyal consumers. B) Manufacturers that currently use coupons are particularly interested in coupon programs directed at repeat purchasers. C) Studies suggest that market share does increase during the period immediately after coupons are distributed. D) Recent growth in coupon fraud has marketers considering adding holograms and visual aids to coupons to help cashiers identify valid coupons. E) The redemption rate for online coupons is substantially higher than other forms of coupons.
223)
All of these add to the costs of couponsexcept which? A) misredemption B) redemption C) customer handling D) clearinghouse costs E) the advertisement to deliver it
224) Valpak is a firm that sends consumers a package of________Blank to stimulate selective demand (encourage the trial) of various products by offering them an immediately discounted price. A) deals B) rebates C) samples D) premiums E) coupons
Version 1
76
225) A mother handed her college-aged son a clipped________Blank and said, “Use this to get 25 cents off the Birds Eye lima beans I need you to pick up for dinner,” which shows that Birds Eye has been successful in its attempt to stimulate demand. A) coupon B) rebate C) sample D) deal E) premium
226) Short-term price reductions like two-for-one commonly used to increase trial among potential customers or to retaliate against a competitor’s actions are referred to as a A) coupon. B) deal. C) sample. D) premium. E) product placement.
227) The sign at the entrance to a men’s store reads, “Buy one shirt, get a second shirt of equal or lower value for only one dollar.” Which type of sales promotion is the store using? A) a contest B) a premium C) a deal D) a rebate E) a sample
Version 1
77
228) During Super Bowl weekend, Pepsi introduced a new brand of soft drink. On that same weekend, Coca-Cola offered a “BOGO” (Buy One, Get One) promotion to make the Pepsi new product introduction more difficult. Which type of sales promotion was Coca-Cola using? A) a contest B) a premium C) a deal D) a rebate E) a sample
229) A promotional tool often used with consumers that consists of merchandise offered free or at a significant savings over its retail price is referred to as a A) deal. B) rebate. C) sample. D) premium. E) coupon.
230) A________Blank is self-liquidating if the merchandise cost is covered by what the consumer pay for it, though it is offered at a significant savings off its retail price. A) deal B) premium C) sample D) rebate E) coupon
231)
All of these are among the most popular premiumsexcept which?
Version 1
78
A) writing instruments B) toys for dogs and cats C) cups and mugs D) desk accessories E) apparel
232) McDonald’s recently offered collectible toy characters from the Marvel Studios movieEternals for free with the purchase of a Happy Meal. These collectibles are an example of a A) deal. B) rebate. C) coupon. D) sample. E) premium.
233) A print ad for Allegra allergy medication offers a free purple seat cushion to customers when they make their first purchase. This seat cushion is an example of a A) sample. B) deal. C) rebate. D) premium. E) coupon.
234) When Milk-Bone dog biscuits offered a ball toy for $1.99 and two proofs of purchase, it was using a
Version 1
79
A) deal. B) rebate. C) coupon. D) sample. E) premium.
235) A sales promotion in which consumers are invited to apply their skill or analytical or creative thinking to try to win a prize is referred to as a A) contest. B) challenge. C) competition. D) sweepstakes. E) public relations campaign.
236) Which sales promotion tool is the best match for the growth in consumer-generated content? A) samples B) sweepstakes C) coupons D) contests E) deals
237) For a decade’s worth of Super Bowls, Doritos sponsored “Crash the Super Bowl,” asking people to create their own 30-second ad about Doritos. A panel of judges selected the finalists, posted the submissions on the Doritos Facebook page, and opened up voting by the public. Which type of sales promotion was Doritos using?
Version 1
80
A) a deal B) a contest C) a premium D) a rebate E) a sample
238) During the Pillsbury Bake-Off, thousands of people across the country compete to create the best new recipe using the sponsor’s products. Not only does the company benefit from the publicity surrounding the event and the great recipes that can be used later to increase product usage, but also there is an increase in product sales as contenders buy items to practice their new recipes. The top 100 finalists are flown to Orlando, Florida, to compete for cash and merchandise that exceeds $1 million. This promotion is an example of a very successful________Blank. A) challenge B) contest C) sweepstakes D) competition E) public relations campaign
239) “Inspired by Threads—A Fashion Challenge” is a(n)________Blank run each year byThreads magazine, which is targeted toward professional clothiers and seamstresses. The idea is to design and sew a garment and send the entry intoThreads to compete with others for prizes such as sewing machines and cash. A) premium B) sweepstakes C) contest D) deal E) end-run sample
Version 1
81
240) A popular NPR radio show encourages listeners to solve a puzzle each week. If they have the correct answer and send it in to the show and theirs is chosen, they win a prize. This is an example of a A) premium. B) sweepstakes. C) deal. D) contest. E) trade promotion.
241) Sales promotions that require participants to submit some kind of entry but are purely games of chance requiring no analytical or creative effort by the consumer are referred to as A) premiums. B) rebates. C) deals. D) contests. E) sweepstakes.
242) Today, there are two popular variations of sweepstakes: one offers products that consumers value as prizes and the other offers A) double or triple the face value of a coupon as the prize. B) a free sample of the firm’s product as the prize. C) an “experience” as the prize. D) a cash rebate for the purchase of the firm’s product as the prize. E) a Buy One Get One (BOGO) deal as the prize.
Version 1
82
243) The California Pistachio Growers Association has an ongoing ad campaign in which it encourages people to think of pistachios when they think of good times and good friends. The ads ask readers to log onto www.pistachios.org to register to win 100 pounds of pistachios for a year plus a trip to California. The association is using a________Blank sales promotion. A) lottery B) contest C) premium D) sweepstakes E) deal
244) Chevy trucks are on display at the National Western Stock Show and Rodeo. Visitors are encouraged to sign up to win one of the trucks, no purchase necessary. Chevy is using a________Blank sales promotion tool. A) sweepstakes B) lottery C) contest D) premium E) deal
245) McDonald’s partners with Hasbro each year to offer a Monopoly sales promotion. Customers who purchase selected menu items receive two tokens that correspond to the properties on the popular game board. If a set of tokens matches the color-coded properties, customers win cash prizes of up to $1 million. Customers may also win “Instant” prizes redeemable for specific food or drink items. What is this popular sales promotion called? A) a lottery B) a contest C) a premium D) a sweepstakes E) a deal
Version 1
83
246) Sales promotions where the consumer is offered the product free or at a greatly reduced price are referred to as A) deals. B) rebates. C) samples. D) premiums. E) discounts.
247)
Sampling is an appropriate strategy for which type of products? A) products that are classified as shopping goods B) new products C) commodity products such as salt, sugar, and baking soda D) products that are perishable E) products that are classified as specialty goods
248) Taco Bell introduced its Doritos Locos Tacos by giving away millions of free tacos. Taco Bell used a sales promotion called A) a self-liquidating premium. B) a special deal. C) a rebate. D) sampling. E) product placement.
249) When Arturo went to get his newspaper, he found the paper in a plastic bag along with a box containing one dose of Alka-Seltzer Heartburn Relief medication. Which type of sales promotion is Alka-Seltzer using? Version 1
84
A) a sample B) a deal C) a premium D) a point-of-purchase display E) an introductory offer
250) Michael Angelo’s Pepperoni Mini Calzones are easy-to-prepare snacks, but the manufacturer believes customers are not buying the product as predicted because they are unfamiliar with calzones. The manufacturer is interested in employing a sales promotion technique that will communicate the ease of preparation and encourage customers to try the product. Which method would it most likely employ? A) Advertise on television showing a mother preparing the snack in less than 60 seconds in the microwave. B) Provide a premium to build customer goodwill by receiving reduced-price merchandise. C) Have a sign that will be placed on the grocer’s freezer where the product is offered for sale. D) Use a rebate to encourage customers to purchase the snack and increase customer confidence in the product. E) Use a demonstrator hired by the company to prepare the snack in a grocery store and give away samples of the snack to shoppers as they pass by.
251) Ben & Jerry’s retail stores offers a complimentary scoop of ice cream on “Free Cone Day.” This is what type of sales promotion? A) product placement B) sample C) premium D) sweepstakes E) deal
Version 1
85
252) Marketing firm Valassis created and managed a Nutella promotion to induce trial of the product. Nutella is a creamy, chocolaty, hazelnut spread that is imported into the United States from Italy. A Valassis polybag containing a 20-gram “Coppetta” packet of Nutella spread, a cracker, a Nutella coupon, and a product brochure were delivered to consumers’ doors via the Sunday newspaper. In addition to the coupon, what type of sales promotion was used here? A) product placement B) sample C) premium D) sweepstakes. E) deal
253) A sales promotion designed to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate is referred to as A) a merchandise deal. B) a product enhancement. C) a loyalty program. D) retail positioning. E) experiential decoding.
254)
The most popular loyalty programs today are________Blank reward programs. A) fast-food B) airline travel C) hotel accommodations D) credit card E) grocery store items
Version 1
86
255) A Taste of Greece, a restaurant chain that is known for its Extra Juicy Gyro sandwich, wants to encourage repeat purchases and create long-term customers. Which sales promotion should it employ? A) a loyalty program that allows buyers to earn free food after making 10 purchases B) a two-for-the-price-of-one deal that is only offered on New Year’s Eve C) a coupon for a free soft drink with a gyro purchase D) a game with food prizes E) free Extra Juicy Gyro samples at local fairs and concerts
256) A sales promotion prominently displayed in a store aisle is called a(n)________Blank display. A) seasonal B) automated C) interactive D) point-of-purchase E) product sampling
257)
For marketers, the primary objective of a point-of-purchase display is to A) eliminate the need for any special pricing promotion. B) retaliate against competitors’ actions. C) encourage present customers to make recommendations to friends. D) build business inventory. E) increase product trial and provide in-store support for other promotions.
Version 1
87
258) A promotion related to the moviePacific Rim Uprising was seen in Target stores throughout the United States. The sales promotion was designed to maximize the consumer’s attention to a DVD release and provide storage for the products. This type of sales promotion is referred to as a A) sample. B) freestanding insert. C) point-of-purchase display. D) premium. E) deal.
259) Nabisco used a freestanding rack in the shape of a bus to promote its Ritz and other cracker products. The goal of the sales promotion was to maximize consumers’ attention to lunch box and after-school snacks. The “bus,” which provided storage for the featured products, was placed in a high-traffic area of U.S. grocery stores. This type of sales promotion is referred to as a A) sample. B) freestanding insert. C) point-of-purchase display. D) premium. E) deal.
260) Some studies estimate that________Blank percent of a consumer’s buying decisions are made in the store. A) 20 B) 33 C) 40 D) 60 E) 75
Version 1
88
261) A consumer sales promotion tool that offers the return of money based on proof of purchase is known as a A) premium. B) rebate. C) coupon. D) deal. E) product placement.
262) When a________Blank is offered on lower-priced items as a sales promotion, the time and trouble of mailing in a proof of purchase to get the check often means that many buyers never take advantage of it. A) premium B) rebate C) coupon D) deal E) product placement
263) Virgin Mobile, a mobile communications service provider, recently offered consumers a________Blank of $100 when they switched their service during a seven-week period, and deducted it from the first bill. A) premium B) deal C) coupon D) rebate E) student incentive
Version 1
89
264) The consumer sales promotion that involves the use of a brand-name product in a movie, television show, video game, or a commercial for another product is referred to as A) co-branding. B) a subliminal tie-in. C) product placement. D) a partnership promotion. E) product parallelism.
265)
Product placement refers to
A) the consumer promotion that involves the use of a brand-name product in a movie, television show, video game, or a commercial for another product. B) the relative value of a product’s physical location based on line-of-sight positioning on a retailer’s shelf. C) being placed on retailers’ shelves or in showrooms based on the slotting fee paid by the manufacturer. D) the use of a brand-name product in a movie, television show, video game, or commercial without the manufacturer’s knowledge or permission, and without compensation. E) a variable fee paid by producers of movies, television products, or commercials to a manufacturer for the rights to use a product as a prop in one of their creative scenes.
266) After the release of the movieE.T., sales of Hershey’s Reese’s Pieces soared while Mars, the makers of M&M’s, regretted not permitting its product to be used in the film. The use of Reese’s Pieces in the movie is an example of A) product continuity. B) subsidized advertising. C) subliminal direction. D) showrooming. E) product placement.
Version 1
90
267) Tom Cruise wore Bausch and Lomb’s Ray-Ban sunglasses in the movieRisky Business, and sales skyrocketed. The appearance of the sunglasses in the film is an example of A) product continuity. B) subsidized advertising. C) subliminal direction. D) showrooming. E) product placement.
268) In the filmRunaway Bride, Julia Roberts boarded a FedEx truck. Another actor gave voice to FedEx’s service guarantee, saying she will arrive “by 10 a.m. the next business day.” This is an example of A) product placement. B) product continuity. C) a deal. D) subliminal advertising. E) reverse product placement.
269) A variation of product placement, called________Blank, brings fictional products to the marketplace. A) an advanced placement B) product continuity C) reverse product placement D) trade-oriented sales promotion E) subliminal advertising
Version 1
91
270) Which of these is one of three common trade-oriented sales approaches are targeted uniquely to wholesalers, retailers, and distributors? A) reminder advertising B) cooperative advertising C) pioneering advertising D) competitive advertising E) comparative advertising
271)
Trade promotions are
A) promotions where charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. B) methods used to get a nonpersonal, indirectly paid presentation of a company’s products. C) advertisements that show actual consumers using the product in a barter or countertrade situation. D) sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers. E) sales promotions that are directed to ultimate consumers and are used to support advertising and personal selling.
272) Sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers are referred to as A) trade-oriented sales promotions. B) consumer-oriented promotions. C) reseller-oriented promotions. D) wholesaler-oriented promotions. E) retailer-oriented promotions.
Version 1
92
273) A(n)________Blank reimburses a retailer for extra in-store support or special featuring of a brand. A) organizational allowance B) case allowance C) finance allowance D) manufacturer’s inducement E) merchandise allowance
274)
A discount on each case ordered during a specific period of time is referred to as a A) functional allowance. B) merchandise allowance. C) case allowance. D) finance allowance. E) manufacturer’s inducement.
275) A variation of the case allowance is the________Blank approach, whereby retailers receive some amount of the product free based on the amount ordered, such as 1 case free for every 10 cases ordered. A) complementary sampling B) bonus volume C) Buy One Get One (BOGO) D) free goods E) promotional allowance
276) A trade promotion that involves paying retailers for financing costs or financial losses associated with consumer sales promotions is referred to as a Version 1
93
A) finance allowance. B) promotional allowance. C) merchandise allowance. D) slotting fee. E) failure fee.
277) A trade promotion where the manufacturer gives a retailer a case allowance price for products in their warehouse, which prevents shelf stock from running down during the promotional period, is referred to as a________Blank stock protection program. A) level B) floor C) clearance D) base E) hedge
278) A trade promotion that compensates retailers that transport orders from the manufacturer’s warehouse is referred to as a________Blank allowance. A) carry B) haulage C) finance D) case E) freight
279) Advertising programs in which a manufacturer pays a percentage of a retailer’s local advertising expense for advertising the manufacturer’s products are referred to as
Version 1
94
A) trade promotion programs. B) consumer promotion programs. C) cooperative advertising programs. D) cause-related marketing programs. E) shared-responsibility programs.
280)
Cooperative advertising refers to
A) advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products. B) advertising programs by which a manufacturer pays for national ad distribution and the retailer pays for local advertising expenses. C) advertising that is paid collectively for all stores located within a specified geographic area, such as a five-mile radius around a particular shopping center or strip mall. D) advertising paid for by multiple independent firms to promote a product class rather than an individual product or firm. E) advertising paid for by several unrelated firms to promote a worthy cause such as cancer research.
281) While reading the newspaper, Jordan noticed an advertisement containing a coupon from Bayer that is redeemable only at Target stores. This ad is an example of A) co-branding. B) a finance allowance. C) cooperative advertising. D) a merchandise allowance. E) specialty advertising.
Version 1
95
282) A hardware store owner placed an advertisement for Sylvania LED bulbs in the local newspaper. Sylvania provided the storeowner with several high-quality, camera-ready sample advertisements. In addition to supplying the advertising formats, Sylvania also paid 50 percent of the cost to place the ad in the paper. Sylvania was using________Blank to promote its products. A) strategic channel partnership B) cooperative advertising C) retail publicity D) reseller consumer promotion E) manufacturer incentive advertising
283) All of these statements regarding the training of distributors’ sales forces are trueexcept which? A) A manufacturer’s success often depends on the ability of its resellers’ sales forces to represent its products. B) Manufacturers develop incentive and recognition programs to motivate a reseller’s salespeople to sell their products. C) Intermediaries can perform customer contact and selling functions for the producers they represent. D) Both retailers and wholesalers employ and manage their own sales personnel. E) Resellers’ sales forces are typically the most sophisticated and knowledgeable about a manufacturer’s products.
284)
Publicity tools are
Version 1
96
A) methods of tying charitable contributions of a firm directly to the customer revenues produced through the promotion of one of its products. B) methods used to get a nonpersonal, directly paid presentation of a company or its products. C) short-term inducements of value offered to arouse interest in buying a product or service. D) methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost. E) free space or time donated by the media.
285) Methods for obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements, are referred to as A) promotional strategies. B) cooperative advertising. C) public promotions. D) market-oriented promotions. E) publicity tools.
286)
Which of these is a publicity tool? A) point-of-purchase display B) merchandise allowance C) news conference D) sweepstakes E) cooperative advertising
287) In planning and obtaining publicity, a frequently used tool is the________Blank, which is an announcement regarding changes in the company or the product line.
Version 1
97
A) trade announcement B) news release C) infomercial D) news conference E) public trade announcement
288) The objective of a(n)________Blank is to inform a newspaper, radio station, or other media of an idea for a story. A) infomercial B) business bulletin C) news release D) news broadcast E) broadcast summary
289) An e-mailed announcement that was sent to members of the business press from German pharmaceutical giant Bayer stating that it was looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool? A) news release B) public trade announcement C) lobbying D) news conference E) event management
290) An announcement that Apple has just introduced a new version of its iMac Pro computer is an example of which type of publicity tool?
Version 1
98
A) lobbying B) events management C) disclosure statement D) news release E) public service announcement
291) A common publicity tool is the________Blank, in which representatives of the media are invited to an informational meeting and advance materials regarding the content are sent. A) infomercial B) news release C) news conference D) news flash E) brand briefing
292)
A news conference is A) an announcement regarding changes in a company or product line. B) free space or time in a newspaper or on a broadcast medium. C) a publicity tool that utilizes high-visibility individuals in lobbying activities. D) a meeting of top news executives to decide advertising policy. E) an informational meeting to which representatives of the media are invited.
293) News conferences would most likely be used during which stage of a product’s life cycle?
Version 1
99
A) introduction B) maturity C) innovation D) growth E) decline
294) Ford debuted its 2022 Ford F-150 Lightning, the first mass-market all-electric pickup from any full-line automaker, during the 2021 Chicago Auto Show. The media was invited to the presentation and the launch was widely reported. This is an example of a A) news release. B) news conference. C) promotional giveaway. D) PSA. E) cooperative advertisement.
295) A publicity tool that is heavily relied on by nonprofit organizations, and which involves free space or time donated by the media, is referred to as a A) public service announcement. B) cooperative advertisement. C) cause-related publicity tool. D) news conference. E) news release.
296) During a recent winter immunization campaign, the Centers for Disease Control and Prevention used the media to encourage all Americans to be vaccinated against the seasonal flu virus. This is an example of a________Blank, in which the media donated free space and airtime.
Version 1
100
A) news release B) news conference C) public service announcement D) cooperative advertisement E) charitable advertisement
297) The increasing effort by advertising agencies, trade associations, and marketing associations to impose standards upon themselves that reflect the values of society is referred to as A) legislation. B) self-regulation. C) business practice. D) business ethics. E) government regulation.
298) Public watchdog groups are critical of ad campaigns for some video games that use sex appeals and glamorize violence. How should an ad agency respond to these critics if it wishes to avoid the enactment of additional laws limiting its creativity? A) Express strong support for First Amendment freedom and stand its ground. B) Develop an infomercial for its product that is relevant, useful to its customer, and entertaining. C) Produce a public service announcement in support of its current, successful approach. D) Take advantage of the publicity and run the ads in question more frequently. E) Take steps toward self-regulation, imposing standards on its promotional activities that reflect the values of society.
299) Advertising agency Fallon Worldwide has a philosophy its management describes as “________Blank as a business model.”
Version 1
101
A) interactive media B) speed C) innovation D) family E) perfection
300) In Fallon Worldwide’s organizational structure, copywriters are part of the________Blank department. A) operations B) creative C) media D) production E) management
301) One of the primary benefits Fallon Worldwide receives by being owned by the holding company Publicis Communications is A) access to competitive intelligence from its competitors that are owned by the same firm. B) an ideal portfolio of high-profile clients. C) an increased reputation for being a socially responsible company. D) an ability to rebrand to more closely align with new objectives. E) useful research on a scale that is not available to a small company.
302) Fallon Worldwide’s planning process for an advertising campaign typically begins with the discovery of
Version 1
102
A) a social media pattern. B) competitors’ shortcomings. C) a “human truth” based on research. D) a new mission statement for the client. E) brand initiatives that are unique.
303)
Part of the implementation process at Fallon Worldwide for an advertising campaign is to
A) select and schedule the media. B) compare the results with the chosen metrics, like click-through rate. C) research how advertising might influence prepurchase, purchase, and postpurchase activities. D) set objectives that are meaningful to the client. E) conceptualize a creative concept.
304) Click-through rates, awareness, and shareability are among the________Blank Fallon Worldwide uses in the evaluation process for its advertising campaigns. A) messages B) slogans C) metrics D) concepts E) themes
305) Fallon Worldwide kicked off its new Arby’s advertising campaign with________Blank to increase the legitimacy of the food.
Version 1
103
A) detailed nutritional facts for menu items B) testimonials from social media influencers C) store remodeling specifications D) a man in a chef’s coat slicing the meats E) sourcing information for beef and chicken products
306)
Describe the three forms of product advertisements. What are their objectives?
307)
List and briefly describe the four forms of institutional advertising.
308)
What are the steps to develop an advertising program?
309) Most advertising messages are made up of both informational and persuasive elements. These two elements can be combined in the form of an appeal to provide a basic reason for the consumer to act. Briefly describe the three appeals.
Version 1
104
310) What are the two conflicting goals that advertisers face when choosing advertising media? What is the relationship of reach and frequency to these goals?
311) Media buyers use many terms to help select the right media for an advertising campaign. Definereach, rating, frequency, gross rating points (GRPs), andcost per thousand (CPM).
312) List two advantages and two disadvantages of using each of these for advertising: television, radio, magazines, and newspapers.
313) List two advantages and two disadvantages of using each of these for advertising: directories (yellow pages), the Internet, and billboards (outdoor).
314)
Identify the three different approaches used to schedule advertising.
Version 1
105
315) List and describe the three types of pretests that can be conducted before advertising is placed in the media.
316) Discuss the process of pretesting and posttesting advertising copy. Include a list of methods used for pretesting and posttesting in your answer. Be sure to explain why marketers should pretest and posttest advertisements.
317) Differentiate among full-service advertising agencies, limited-service advertising agencies, and in-house agencies as to the services provided.
318)
What is the difference between a coupon and a deal?
Version 1
106
319) A new sandwich shop has opened just off campus and would like the university students to frequent the shop whenever they are hungry. What is the best type of sales promotion to use to reach them and why?
320)
What is the difference between a contest and sweepstakes?
321)
What is a point-of-purchase display? Discuss two reasons firms use them.
322)
What is a product placement? Give an example.
323)
What is cooperative advertising?
Version 1
107
324) What is publicity? What are the main types of publicity tools? What is the main objective of each type of tool?
Version 1
108
Answer Key Test name: Chap 19_16e_Kerin 1) C 2) B 3) C 4) D 5) E 6) D 7) A 8) C 9) D 10) D 11) E 12) A 13) C 14) C 15) D 16) B 17) B 18) E 19) C 20) A 21) C 22) E 23) B 24) D 25) E 26) B Version 1
109
27) C 28) D 29) D 30) D 31) B 32) E 33) A 34) C 35) B 36) B 37) C 38) A 39) E 40) E 41) C 42) D 43) A 44) E 45) B 46) C 47) D 48) E 49) E 50) B 51) E 52) A 53) C 54) B 55) E 56) A Version 1
110
57) B 58) C 59) D 60) D 61) E 62) E 63) C 64) D 65) E 66) B 67) A 68) C 69) E 70) B 71) A 72) E 73) C 74) B 75) D 76) A 77) B 78) E 79) D 80) A 81) E 82) C 83) B 84) D 85) C 86) D Version 1
111
87) A 88) A 89) A 90) E 91) E 92) B 93) C 94) C 95) A 96) C 97) D 98) C 99) B 100) E 101) A 102) A 103) D 104) C 105) B 106) E 107) C 108) A 109) B 110) B 111) A 112) C 113) D 114) A 115) D 116) B Version 1
112
117) C 118) E 119) A 120) C 121) E 122) A 123) E 124) B 125) E 126) C 127) A 128) C 129) A 130) E 131) B 132) C 133) A 134) C 135) D 136) C 137) B 138) E 139) D 140) B 141) A 142) B 143) C 144) D 145) B 146) A Version 1
113
147) A 148) D 149) A 150) B 151) C 152) A 153) D 154) C 155) B 156) A 157) C 158) D 159) B 160) A 161) B 162) D 163) D 164) C 165) D 166) A 167) C 168) B 169) A 170) D 171) C 172) C 173) E 174) C 175) D 176) B Version 1
114
177) E 178) D 179) C 180) A 181) D 182) B 183) A 184) C 185) D 186) E 187) B 188) D 189) A 190) D 191) C 192) C 193) D 194) E 195) B 196) C 197) C 198) A 199) E 200) A 201) D 202) C 203) D 204) E 205) A 206) E Version 1
115
207) C 208) C 209) D 210) E 211) B 212) C 213) D 214) C 215) A 216) D 217) B 218) C 219) D 220) C 221) B 222) B 223) C 224) E 225) A 226) B 227) C 228) C 229) D 230) B 231) B 232) E 233) D 234) E 235) A 236) D Version 1
116
237) B 238) B 239) C 240) D 241) E 242) C 243) D 244) A 245) D 246) C 247) B 248) D 249) A 250) E 251) B 252) B 253) C 254) D 255) A 256) D 257) E 258) C 259) C 260) B 261) B 262) B 263) D 264) C 265) A 266) E Version 1
117
267) E 268) A 269) C 270) B 271) D 272) A 273) E 274) C 275) D 276) A 277) B 278) E 279) C 280) A 281) C 282) B 283) E 284) D 285) E 286) C 287) B 288) C 289) A 290) D 291) C 292) E 293) A 294) B 295) A 296) C Version 1
118
297) B 298) E 299) D 300) B 301) E 302) C 303) A 304) C 305) D
Version 1
119
CHAPTER 20 1) Besides just avoiding traffic, there are a variety of benefits to the platforms that allow mobile consumers to utilize social media, virtual assistants, voice recognition, vehicle-to-vehicle communications, and GPS-enhanced information through their A) laptops. B) text messages. C) social media campaigns. D) wearable technologies. E) connected cars.
2) Messaging apps such as WhatsApp, Talk, Facebook Messenger, WeChat, and Slack allow consumers to chat with company representatives, ask questions, and obtain personalized recommendations. These messaging options, when combined with Internet bots, are becoming a new form of shopping known as A) shop chat. B) conversational commerce. C) social media marketing. D) purchase technologies. E) connected purchasing.
3)
Social media are
A) online hangouts and games. B) online media where users submit comments, photos, and videos—often accompanied by a feedback process to identify popular topics. C) any type of medium in which large groups of people read content generated by a business, government, or corporation. D) only media that allow face-to-face communication. E) all forms of electronic media.
Version 1
1
4) Online media where users submit comments, photos, and videos, often accompanied by a feedback process to identify popular topics are called A) rich media. B) Facebook. C) avatar media. D) social media. E) feedback loops.
5) A single social media site with millions of users interacting with each other, like Instagram, Facebook, Pinterest, Twitter, and LinkedIn, is referred to as a(n) A) social network. B) chat room. C) electronic medium. D) social medium. E) feedback medium.
6)
Social networks are A) dating websites such as eHarmony. B) Internet browsers like Safari or Firefox. C) specific social media such as Instagram, Facebook, Twitter, and LinkedIn. D) the replacement for e-mail to send private digital messages. E) social media websites that are the high in self-disclosure but low in media richness.
7)
Another term sometimes used interchangeably with social media is
Version 1
2
A) net platforms. B) Web Redux. C) user platforms. D) Web 2.0. E) peer-to-peer networking.
8) Updates to social media known as________Blank include additional functionalities that allow personalization and customization to each individual based on location, interests, and needs. A) net platforms B) Web 3.0 C) digital dataworks D) user platforms E) peer-to-peer networking
9)
Web 2.0 and Web 3.0 consist of
A) the functionalities of the Web that make possible the high degree of interactivity among users. B) technical updates of the World Wide Web from Web 1.0. C) the second and third generations of Internet browsers. D) the increased degree of anonymity among users that continues to be improved. E) the final published form of marketer-generated content in consumer and business markets, respectively.
10)
Web 3.0 integrates
Version 1
3
A) a more reliable and private Internet browser. B) search algorithms tied to facial recognition and emotional states. C) faster routers that allow for quicker, more efficient Internet service. D) Cloud computing, big data, and the Internet of Things. E) a technical interface with the Internet that allows access with hand gestures.
11)
Compared with earlier forms of the Web, Web 2.0 A) includes functionalities that permit people to collaborate and share information online. B) includes multiple technical updates and formalized rules. C) uses greater bandwidth to allow for faster media downloads from the Internet. D) incorporates new functionalities that are customized to each individual. E) uses a technical interface that is more user-friendly.
12)
User-generated content A) is the content posted by a single user on his or her private blog. B) refers to Web 3.0, the next update of the web. C) is the content created by one user using his or her smartphone. D) can include video, blogs, discussion forum posts, digital images, and audio files. E) is a formal term for viral marketing.
13)
User-generated content (UGC) is
Version 1
4
A) content found on a “personal profile” page. B) content found only on blogs and wikis. C) content that is created with the intention of achieving commercial profit. D) content found on forms of online media that are privately owned and operated by a single “user.” E) any form of online media content that is publicly available and created by end users.
14) Any form of online media content that is publicly available and created by end users is referred to as A) user-generated content. B) wikis. C) net platforms. D) website pages. E) social media.
15)
All of these statements about user-generated content (UGC) are trueexcept which?
A) UGC is published on a publicly accessible website and created by end users. B) UGC includes reposting an article found in a newspaper or magazine without editing. C) UGC is consumer-generated by an individual outside of a professional or commercial organization. D) UGC shows a significant degree of creative effort. E) UGC is not simply e-mail, but is published on a publicly accessible website.
16)
Which statement about user-generated content (UGC) is most accurate?
Version 1
5
A) UGC is published where it is accessible to the public. B) UGC must show a sequential journey through posts made by a user. C) UGC is intended for commercial profit. D) UGC includes personal e-mails. E) UGC is limited to text-only, 280-character maximum posts due to technical restrictions.
17) A criterion of________Blank is that it is online content that is published on a publicly accessible website or social networking site. A) social networks B) user-generated content C) blogs D) wikis E) YouTube
18) Online content that shows a significant degree of original or creative effort, and thus is more than simply posting a newspaper or magazine article on a personal blog, is a criterion of A) online advertisements. B) blogs. C) user-generated content. D) wikis. E) Web 3.0.
19) Online content created by an individual outside of a professional or commercial organization is a criterion of
Version 1
6
A) online advertisements. B) user-generated content. C) blogs. D) wikis. E) Web 3.0.
20)
Social media can be classified based on________Blank and A) web browsers; apps. B) user-generated content (UGC); marketer-generated content (MGC). C) blogs; wikis. D) textual complexity; visual depth. E) media richness; self-disclosure.
21) In classifying social media, the degree of acoustic, visual, and personal contact between two communication partners is referred to as A) user-generated content. B) social value. C) self-disclosure. D) media richness. E) emotive content.
22)
In classifying social media, self-disclosure is
Version 1
7
A) the degree to which a person’s thoughts, feelings, likes, and dislikes are shared when engaged in a social interaction. B) the degree of acoustic, visual, and personal contact between two communication partners. C) an undesirable effect of social media in which too much personal information is given by users, resulting in identity theft. D) a growing trend in which telephone and e-mail communications contribute to one’s online profile. E) behavior that leads to an unfavorable impression by other online users.
23)
In classifying social media, media richness is________Blank, whereas self-disclosure is
A) the degree to which a person’s thoughts, feelings, likes, and dislikes are made public; the degree of acoustic, visual, and personal contact between two communication partners. B) the degree of acoustic, visual, and personal contact between two communication partners; the degree to which a person’s thoughts, feelings, likes, and dislikes are made public. C) the quality of the graphics and video on a website; the online conduct that leads to an unfavorable impression. D) a visual measure; an emotional measure. E) the extent to which a user personalizes his/her profile page; adding contact information (telephone, address, and e-mail) on one’s social media profile.
24) In classifying social media, the degree of acoustic, visual, and personal contact between two communication partners is referred to as________Blank, whereas the degree to which a person’s thoughts, feelings, likes, and dislikes are made public is referred to as A) self-disclosure; media richness. B) media richness; self-disclosure. C) emotional value; social degree. D) social degree; emotional value. E) media richness; user-generated content.
Version 1
8
25) Media richness is________Blank in face-to-face communication than in telephone or email communications. A) more biased B) lower C) higher D) more technological E) less independent
26) As the content of a marketing website for a product moves from words to photos, videos, and animation, the media richness of the site A) decreases. B) is not affected. C) can be more easily manipulated. D) increases. E) can’t be determined as exactly.
27) In social interactions, a favorable image is affected by the degree of self-disclosure of a person’s thoughts, feelings, likes, and dislikes. Greater self-disclosure is likely to________Blank one’s influence on those reached. A) decrease B) not affect C) undermine D) manipulate E) increase
Version 1
9
28) As the content of a blog or messages posted on social media sites moves from impersonal to highly personal, the level of self-disclosure A) decreases. B) is not affected. C) undermines the credibility of the site. D) increases. E) increases the credibility of the site.
29) One dimension, ________Blank, is used to classify social media and is shown in Figure 20-1 on the x-axis, ranging from “words” to “animation.”
Version 1
10
A) user-generated content B) technical skill C) self-disclosure D) media richness E) channel
30) One dimension, ________Blank, is used to classify social media and is shown in Figure 20-1 on the y-axis, ranging from “impersonal” to “very personal.”
Version 1
11
A) user-generated content B) technical skill C) self-disclosure D) media richness E) channel
31) The practice of focusing on the identification and recruitment of individuals to advocate a company’s products, services, and brands rather than focusing exclusively on prospective buyers is referred to as A) behavioral targeting. B) showrooming. C) viral marketing. D) customerization. E) influencer marketing.
32)
Which statement is most accurate to describe influencer marketing?
A) There is rarely any type of compensation involved for influencers. B) Influencer marketing is based on personal influence as a behavioral concept. C) Influencer marketing is most effective when used in traditional media. D) Most influencer marketing has a political purpose. E) It is limited in scope because businesses have been unable to find suitable influencers for most products.
33) Some companies group social media influencers by number of followers; one categorization labels influencers with more than 1 million followers as________Blank influencers.
Version 1
12
A) Super B) Macro C) Lead D) Pro E) Mega
34) A social media influencer’s number of followers is often attributed to his or her perceived________Blank, knowledgeability, authenticity, and reliability in providing relevant content to his or her audience. A) authority B) status C) newness D) credibility E) positivity
35) The use of social network services and websites by consumers to share their latest purchases, deals, coupons, product reviews, want lists, and other shopping finds with friends and contacts is referred to as A) social shopping. B) showrooming. C) viral marketing. D) customerization. E) influencer marketing.
36) The theory of social________Blank maintains that when people perceive themselves as similar to people around them (in their immediate social network), they are more likely to adopt and perceive as correct the observed behavior of these people, and may explain the success of social shopping.
Version 1
13
A) similarity B) proof C) identify D) customerization E) influence
37) Research indicates that individuals from which generational cohort are particularly active in social shopping? A) Baby boomers B) Gen Z C) the greatest generation D) retirees E) Gen X
38) Each of these are widely used social networks discussed in the text based on their impact on both consumers and organizations except which? A) Twitter B) YouTube C) Facebook D) LinkedIn E) Snapchat
39) Which of these social networks is considered by marketers to be most important for influencer marketing?
Version 1
14
A) Twitter B) YouTube C) Facebook D) LinkedIn E) Instagram
40)
Facebook has enhanced its capabilities with acquisitions of Instagram, WhatsApp, and A) Twitter. B) Pinterest. C) Vimeo. D) Snapchat. E) Oculus.
41)
Facebook is
A) a popular website where users may create a personal profile; add other users as friends; and exchange comments, photos, videos, and “likes” with them. B) a website that enables users to send and receive “tweets,” messages up to 280 characters long. C) a business-oriented website that lets users post their professional profiles to connect to a network of businesspeople. D) a video-sharing website in which users can upload, distribute, view, and comment on videos. E) a virtual content-sharing social network that allows people to share images of their favorite things such as clothing, craft ideas, and recipes as well as enables them to categorize these images.
42) The social media website where users may create a personal profile; add other users as friends; and exchange comments, photos, videos, and “likes” with them is known as
Version 1
15
A) Twitter. B) Vimeo. C) Facebook. D) YouTube. E) LinkedIn.
43)
Which statement about Facebook is most accurate?
A) Facebook is the third most-used social network. B) Facebook is the leader in U.S. social commerce by a wide margin. C) Facebook is owned by Google. D) Facebook’s most commonly used tool lets people keep in touch through private, long text entries similar to e-mail. E) Facebook has a nominal fee to join, depending on country of origin.
44)
Which statement about Facebook is most accurate? A) Facebook has 20 percent of its users living outside of North America. B) Facebook’s registered users are declining in number. C) Facebook gets more video uploads than any other social media site. D) Facebook users aged 18 to 29 years old have an average of about 300 friends on the
site. E) Facebook’s primary purpose is enabling users to network and connect with others in their profession.
45) To generate traffic to a Facebook Page for a brand, which of these is mode of advertising on Facebook?
Version 1
16
A) Messages can be sent to the inbox on a user’s profile page. B) Pop-up ads can appear after a user logs in. C) Facebook will place links to other webpages on its home page. D) Facebook does not allow any forms of advertising. E) Paid ads and sponsored stories can appear on a user’s profile page.
46)
To engage fans on Facebook, a good strategy is for a brand manager to use it to
A) create ads that will appear in a specified, strategic position on every page when users log into their profiles. B) send an e-mail message to every registered Facebook user. C) learn users’ passions and let them guide content, as Taco Bell does with polling its users. D) create ads that incorporate controversial topics such as religion and politics to get Facebook users to “like” their page. E) develop a Facebook profile for every employee to show Facebook users the professionalism and dedication of the marketing team.
47) The marketing challenge for the brand manager using a Facebook page is to post and create content that will generate the best response. This goal can be accomplished by all of theseexcept which? A) updating content regularly to keep it fresh B) using familiar imagery and messaging, but adding a twist C) learning users’ passions D) letting users guide content E) posting data as proof points of promised benefits
48)
Recently, Facebook made all of these changes to its capabilitiesexcept which?
Version 1
17
A) Facebook introduced Business Equality resources to encourage diversity and inclusivity in operations, and help eliminate bias in advertising. B) Facebook introduced the app Virtual, which facilitates the use of virtual and augmented reality for mobile devices. C) Facebook launched a program known as Custom Audiences to allow marketers to use e-mail marketing with mobile users. D) Facebook added several new privacy protections and now limits the ads that can be displayed to teenagers. E) Facebook added a new metric called Click-Gap as part of its effort to prevent misinformation, propaganda, hate speech, and fake news from being spread on its platform.
49)
Instagram is a
A) website where users may create a personal profile, add other users as friends, and exchange comments, photos, videos, and “likes” with them. B) social network that allows users to upload photos and videos that can be edited with filters, organized with tags and location information, and shared publicly or with approved followers. C) business-oriented website that lets users post their professional profiles to connect to a network of businesspeople. D) video-sharing website in which users can upload, distribute, view, and comment on videos. E) website that enables online customers to use their collective buying power to take advantage of deeply discounted prices for a product or service each day.
50) The social network that allows users to upload photos and videos that can be edited with filters, organized with tags and location information, and shared publicly or with approved followers is
Version 1
18
A) LinkedIn. B) YouTube. C) Twitter. D) Facebook. E) Instagram.
51) Since Instagram is owned by________Blank there are easy direct links between the two networks. A) LinkedIn B) YouTube C) Twitter D) Facebook E) Yahoo
52) More than 70 percent of________Blank use Instagram, and they report that the platform is the best way for brands to reach them about new products or promotions. A) men B) employed adults C) affluent adults D) teenagers E) children
53) Best practices for carousel ads on Instagram are to tell a story, show how the product works, and
Version 1
19
A) create a message appropriate for all audiences. B) use the platform’s optimization capabilities. C) conduct research on the impact. D) provide numerous links to branded marketing material. E) protect user’s privacy.
54) Some guidelines for a successful marketing campaign on Instagram include defining the target market,________Blank, and managing the details. A) creating a message appropriate for all audiences B) posting great images and content C) developing persuasive arguments D) providing numerous links to branded marketing material E) protecting user’s privacy
55) The Instagram________Blank feature allows users to buy featured products without leaving Instagram. A) Checkout B) Seller C) Purchase D) BuyIt E) Direct
56)
Twitter is a
Version 1
20
A) website where users may create a personal profile, add other users as friends, and exchange comments, photos, videos, and “likes” with them. B) social network based on followers that enables users to send and receive short messages up to 280 characters long. C) business-oriented website that lets users post their professional profiles to connect to a network of businesspeople. D) video-sharing website in which users can upload, distribute, view, and comment on videos. E) website that enables online customers to use their collective buying power to take advantage of deeply discounted prices for a product or service each day.
57) The social network based on followers that enables users to send and receive messages up to 280 characters long is A) LinkedIn. B) YouTube. C) Twitter. D) Facebook. E) Pinterest.
58)
Twitter is a popular form of communication about a brand or product because of its A) short message length. B) photo-sharing capability. C) ability to display user-generated video content. D) ownership of CoTweet. E) ability to post professional profiles.
59) Teenager Carter Wilkerson was awarded free chicken nuggets for a year by Wendy’s based on his activity on which social network?
Version 1
21
A) YouTube B) LinkedIn C) Facebook D) Twitter E) Pinterest
60)
Brand managers can strategically use Twitter to do all of theseexcept which? A) respond to user criticisms about a brand to develop more satisfied customers B) generate brand buzz by developing an official Twitter profile C) tweet and video stream on topics that provide information of value to their consumers D) use interactive video and live video features to get users engaged with their brands E) encourage purchases directly in the app
61)
Brand managers find out what people are saying about their brand on Twitter by A) having employees perform spot checks on posts. B) using social media management tools like TweetDeck. C) creating their own Twitter account and seeing what “followers” say on Facebook. D) recognizing that posts are too brief to allow for a substantive mention of their brand. E) employing outside search services such as Google and Bing.
62) If you wanted to generate brand buzz for an upcoming product using Twitter, what is the best way to implement this social network?
Version 1
22
A) Monitor other Twitter accounts for negative mentions of your brand. B) Aggressively defend your brand on your Twitter account. C) Develop an official Twitter profile, recruit followers, and show photos and video of the product. D) Create an account and tweet about the launch the day before releasing the product. E) Create content that relies mostly on professional networking and job searching.
63)
YouTube is a
A) website where users may create a personal profile, add other users as friends, and exchange comments, photos, videos, and “likes” with them. B) website that enables users to send and receive short messages up to 280 characters long. C) business-oriented website that lets users post their professional profiles to connect to a network of businesspeople. D) video-sharing website in which users can upload, view, and comment on videos. E) website that enables online customers to use their collective buying power to take advantage of deeply discounted prices for a product or service each day.
64)
The social network that is used solely for sharing videos is A) Google. B) Facebook. C) YouTube. D) Twitter. E) LinkedIn.
65) The most-watched videos on________Blank are Pinkfong's "Baby Shark Dance," Luis Fonsi’s “Despacito,” Ed Sheeran’s “Shape of You,” and LooLoo Kid's "Johny Johny Yes Papa" with 8.6 billion, 7.3 billion, 5.3 billion, and 5.3 billion views, respectively.
Version 1
23
A) YouTube B) Pinterest C) Twitter D) Facebook E) LinkedIn
66)
All of these statements about YouTube are trueexcept which?
A) YouTube is owned by Google. B) Its video focus makes the platform important for influencer marketing. C) Many companies now offer video content through organized channels. D) YouTube assists small businesses in managing key words for their video ads on the website. E) Most content is uploaded by professional musicians, videographers, and businesspeople.
67) If a brand manager wants to explain the benefits of using a new or complex product to consumers, the best social network to use is A) YouTube. B) LinkedIn. C) Facebook. D) Twitter. E) Google Chrome.
68)
Which of these is a guideline for marketing and promoting a brand using YouTube?
Version 1
24
A) Use an expert to inform the audience about product features and benefits. B) Tie the product to a current political or news event. C) Include humorous content to attract as many viewers as possible. D) Exploit visual aspects of your message, perhaps sacrificing product messages to tell a more entertaining story. E) Limit the video to one minute or less, the same as a TV or radio ad time limit.
69) If a brand manager for Honda creates an offbeat and funny video featuring its latest model, the best social networking site to publish the video for marketing purposes would be A) Pinterest. B) LinkedIn. C) Twitter. D) YouTube. E) a personal blog.
70) YouTube would be an excellent social network to advertise all of these productsexcept which? A) power tools B) financial services C) cars D) deep sea diving vacations E) blenders
71)
Pinterest is a
Version 1
25
A) video-sharing website in which users can upload, view, and comment on videos. B) social network that allows users to assemble personal pinboards of photos uploaded by them, friends, families, strangers, and companies. C) website where users create a personal profile, add other users as friends, and exchange comments, photos, videos, and “likes” with them. D) business-oriented website that lets users post their professional profiles to connect to a network of businesspeople. E) website that enables users to send and receive messages up to 280 characters long.
72)
About 85 percent of Pinterest users A) are men under the age of 50. B) are also Facebook users. C) are affluent adults who shop online. D) access the website using a mobile device. E) are children 12 and younger.
73) A higher percentage of________Blank users actively engage in shopping for and finding new products on the website, compared with Facebook and Instagram. A) YouTube B) Pinterest C) CTwitter D) Snapchat E) LinkedIn
74) Guidelines for a brand manager using________Blank for social media marketing include researching what users are already pinning and planning a complementary mix of pinboards that are mobile-friendly.
Version 1
26
A) Facebook B) Pinterest C) Instagram D) YouTube E) LinkedIn
75)
LinkedIn is a
A) website where users may create a personal profile, add other users as friends, and exchange comments, photos, videos, and “likes” with them. B) website that enables users to send and receive short messages up to 280 characters long. C) business-oriented website that lets users post their professional profiles to connect to a network of businesspeople. D) video-sharing website in which users can upload, distribute, view, and comment on videos. E) website that enables online customers to use their collective buying power to take advantage of deeply discounted prices for a product or service each day.
76) The business-oriented website that lets users post their profiles and connect to a network of businesspeople is A) LinkedIn. B) YouTube. C) Twitter. D) Facebook. E) Yahoo.
77)
The social network primarily used for professional networking and job searching is
Version 1
27
A) Twitter. B) LinkedIn. C) Facebook. D) YouTube. E) Facetime.
78)
What is the primary purpose of LinkedIn?
A) LinkedIn keeps track of business trends and “breaking news.” B) LinkedIn provides a way to integrate all of one’s social networks into a single, comprehensive news feed. C) LinkedIn provides a forum for discussion about the difficulties and stresses of the job market. D) LinkedIn provides a forum to create a conversation between large companies and their employees. E) LinkedIn is a platform for professional networking and job searching.
79) Through a network of businesspeople known as________Blank, members of LinkedIn might gain an introduction to someone they wish to know through a mutual contact. A) followers B) colleagues C) contacts D) connections E) friends
80) All of these are tips experts recommend to student job seekers using LinkedInexcept which?
Version 1
28
A) Write an informative, short, memorable profile headline. B) Include a clear, simple, recent photo of yourself. C) Include as many recommendations as you can get. D) Fill in the Skills & Expertise section with keywords that recruiters use in their searches. E) Set your profile to “public” and include its URL on your résumé.
81)
A brand manager might use LinkedIn to A) identify and recruit influencers. B) monitor profiles for negative mentions of the brand. C) create a profile for the brand with a fictional "typical" brand user. D) create visual boards to demonstrate product benefits. E) request to be linked with potentially lucrative customers.
82) Which of these social media platforms sells the most types of user data to others for the purposes of tracking, targeting, and advertising those users? A) Instagram B) Snapchat C) LinkedIn D) Pinterest E) Facebook
83) A(n)________Blank marketing program is that portion of a company’s integrated marketing communications effort designed to create and deliver online media content that attracts viewer attention and encourages readers to share it with their social network.
Version 1
29
A) viral B) social media C) active user D) webrooming E) customerization
84)
A social media marketing plan’s purpose is to reach
A) a captive audience who pays close attention to marketing information and buys products online. B) end users who buy products online. C) traditional consumers who buy products in retail stores. D) active consumers who will communicate with their online friends and the company about the joys of using a brand. E) multichannel buyers who browse products online and buy them in stores.
85) A social media marketing plan should reach________Blank in hope that they become “influentials” and eventually “evangelists.” A) two-way communicators B) end users C) active consumers D) followers E) connections
86) An active consumer who is “delighted” with a brand and its message and then communicates with their online friends and the company about the joys of using the brand is referred to as a(n)
Version 1
30
A) expert. B) follower. C) end receiver. D) traditional consumer. E) evangelist.
87)
Within the context of social media, an “evangelist” is an online user who
A) who is “delighted” with a brand and its message and then communicates with his or her online friends and the company about the joys of using the brand. B) tries to promote an anti-consumerism agenda to other online users, hindering the effectiveness of online advertisements. C) is a paid “brand ambassador” by the advertisers to promote the brand’s positive qualities by sending messages to his or her online friends. D) is indifferent or neutral to advertisements on social networks. E) is an advocate who develops her own Facebook, Twitter, or YouTube following and therefore should be contacted by advertisers about placing an ad on her website.
88) The degree and depth of brand-focused interactions a customer chooses to perform online with his or her social network is referred to as customer A) influencing. B) interaction. C) filtering. D) engagement. E) evangelism.
89) On social media, the customer engagement rate can be calculated as the________Blank divided by the total number of impressions or followers, as applicable to the site being measured.
Version 1
31
A) number of purchases B) level of awareness times 100 C) number of paying customers in the last year D) total number of customer actions E) number of different messages used as content
90) In comparing social media, a brand manager might assess the________Blank and the characteristics of a site’s visitors. A) availability of a social network to run apps B) ability of the site to be measured in terms of its sales, profitability, distribution density, and other performance metrics C) number of users or unique visitors to the website D) ability of the social network to pull controversial content E) site’s ability to present the results of keyword searches to improve the odds of a firm’s products showing up in user searches
Version 1
32
91) In Figure 20-3, which social network has both the highest number of users and the highest monthly market share of visits?
A) LinkedIn B) YouTube C) Twitter D) Facebook E) Pinterest
Version 1
33
92) According to Figure 20-3, which social network has fewer than one billion users but the most frequent usage?
A) LinkedIn B) YouTube C) Twitter D) Facebook E) Pinterest
Version 1
34
93)
According to Figure 20-3, which social network is used most infrequently?
A) LinkedIn B) Instagram C) Twitter D) Facebook E) Pinterest
94) All of these are considered by brand managers as they determine their social media contentexcept which?
Version 1
35
A) how the social media content will complement the overall integrated marketing communications effort in creating and sustaining customer engagement B) how to convince buyers to use traditional channels for purchasing even if they use social media for research C) how the social media content will best be conveyed in different social media D) the content’s intended purpose, such as promotional, entertaining, or educational E) the characteristics of the one or more market segments a marketer wants to reach
95) All of these are among the seven types of social media content used by companies to create and sustain customer engagementexcept which? A) controversial content B) educational content C) connecting content D) newsworthy content E) entertaining content
96) Which type of social media content is the least preferred among companies with active social media marketing programs, though it is among the most preferred for consumers? A) promotional content B) educational content C) connecting content D) newsworthy content E) entertaining content\
97) Which statement about the role of social media for PepsiCo’s “Zero Sugar. Done Right.” is most accurate?
Version 1
36
A) The purpose of the video was to reinvigorate sales of the Diet Pepsi brand. B) Posting the “Zero Sugar. Done Right.” video on Facebook made sense since older people more frequently use this site. C) Pepsi created a series of tweets describing the great variety of things that are sugar free, like freedom, creativity, and love. D) The Pepsi “Zero Sugar. Done Right.” YouTube video used the Rolling Stones’s song “Paint It Black” to help unveil a new black can design. E) “Zero Sugar. Done Right.” was an expensive mistake for Pepsi, failing to connect with consumers.
98)
The best time to schedule social media posts to increase customer engagement is A) either weekend day. B) early morning. C) late afternoon. D) before 2 p.m. E) evenings and weekends.
99)
Performance measures for social media marketing programs are divided into two types:
A) the number of photos uploaded and the number of characters typed (comments, tweets, etc.). B) purchases made online and purchases made in a store as a result of a link from a social media website. C) traditional media costs and social media costs. D) the number of “views” of a YouTube video and the number of “likes” on Facebook. E) those linked to inputs or costs and those tied to the outputs or revenues.
100) New performance measures are emerging in an effort to find an ideal one for social media advertising that Version 1
37
A) links unique visitors and new products. B) monitors registered users. C) evaluates brand awareness. D) ties actual sales revenues to the cost of the ad. E) links brand buzz and consumers’ emotional connections to the brand.
101)
Cost per thousand (CPM) is a measure in which a
A) fixed amount of money is paid for every 1,000 times an ad loads and a visitor might see it—but not whether the user has actually reacted to it. B) fixed amount of money paid to the site for every visitor who clicks on an ad and then jumps from that page to the advertiser’s website. C) fixed amount of money paid to the site for every sale that originated from an ad posted on that site. D) fixed amount of money that is paid to a site for posting an ad for a finite amount of time. E) fixed discount is given to a visitor for clicking on an ad.
102) A fixed amount of money paid for every 1,000 times an ad loads and a visitor might see it is referred to as A) fixed fee rate. B) cost per thousand. C) cost per action. D) cost per click. E) fixed cost.
103) A fixed amount of money paid to the site for every visitor who clicks on an ad and then jumps from that page to the advertiser’s website is referred to as
Version 1
38
A) click-through rate (CTR). B) cost per thousand (CPM). C) fixed fee rate (FFR). D) cost per action (CPA). E) cost per click (CPC).
104)
Cost per click is a measure in which a
A) fixed amount of money is paid to the site for every visitor who clicks on an ad and then jumps from that page to the advertiser’s website. B) fixed amount of money is paid to the site for every sale that originated from an ad posted on that site. C) fixed amount of money is paid to a site for posting an ad for a finite amount of time. D) fixed amount of money is paid for every 1,000 times an ad loads, up to $100 a month. E) fixed discount is given to a visitor for clicking on an ad.
105) A company paying a set amount to Facebook for every time a user clicks on its ad is using________Blank as a performance measure, whereas a company that pays pennies for every 1,000 times its ad loads on a Facebook page and people may see it is using________Blank as a performance measure. A) variable fee; fixed fee B) cost per click; cost per thousand C) fixed fee; variable fee D) cost per action; cost per click E) traditional cost; social media cost
106)
Cost per action refers to
Version 1
39
A) fixed amount of money paid to the site for every time a visitor clicks on the ad. B) fixed amount of money paid to the site for placement of the ad. C) fixed amount of money paid to the site for every sale that originated from an ad posted on that site. D) fixed percentage the site gets paid for placing the ad. E) fixed discount given to a visitor for clicking on the ad.
107) The________Blank measure most closely ties the cost of the social media ad to the sales revenues the ad generates. A) cost-per-click B) cost-per-thousand C) fixed-fee-rate D) cost-per-view E) cost-per-action
108) A business hopes to generate large online sales through posting ads on social networking sites but only wants to pay when an ad actually generates a sale. That firm should use the performance measure of A) cost per thousand, and pay 50 cents for every time an ad loads, up to $100 per month. B) a negotiated measure, and pay $100 to post its ad for two weeks. C) cost per click, and pay $1 for every visitor who clicks on the ad and goes to its website. D) cost per action, and pay $50 for every purchase that originated from an ad on the site. E) cost per like, and pay $1 for every unique visitor who likes the advertised product.
Version 1
40
109)
According to Figure 20-4, Row A is the performance measure referred to as
A) cost-per-click. B) cost-per-thousand. C) click-through-rate. D) cost-per-view. E) cost-per-action.
Version 1
41
110)
According to Figure 20-4, Row B is the performance measure referred to as
A) cost-per-click. B) cost-per-thousand. C) click-through-rate. D) cost-per-view. E) cost-per-action.
Version 1
42
111)
According to Figure 20-4, Row C is the performance measure referred to as
A) cost-per-click. B) cost-per-thousand. C) click-through-rate. D) conversion rate. E) cost-per-action.
112) Individuals who have registered on a social networking site by completing the process involved, such as providing their name, an ID (usually an e-mail address), and a password, as well as answering a few questions (date of birth, gender, etc.) are referred to as
Version 1
43
A) users/members. B) unique visitors. C) visitors. D) fans. E) vloggers.
113)
Users or members of social networks are
A) where a social network’s following comes from—with fans coming from a friend being more valuable than those coming from an ad. B) the total number of unique individuals to a web page in a given time period—counted each time they logon to the site during that period of time. C) the total number of unique individuals to a web page in a given time period, regardless of how many times they logon to the site during that period of time. D) individuals who have registered on a social networking site by completing the process involved, such as providing their name, an ID, and a password. E) the number of people who have opted in to a brand’s messages through a social media platform at a given time.
114) The number of people who have opted in to a brand’s messages through a social media platform at a given time are referred to as A) followers. B) visitors. C) active receivers. D) fans. E) vloggers.
115)
In terms of performance measures for social networks, fans are the
Version 1
44
A) total number of unique visitors to a Facebook page in a given time period. B) number of people who have opted in to a brand’s messages through a social media platform at a given time. C) percentage of people who have clicked on a link on the page to visit a specific site. D) number of people who interact with a post (“like,” make a comment, and so on) divided by the total number of people seeing the post. E) brand’s share or percentage of all the online social media chatter related to its product category or a topic.
116)
As a performance measure for social networks, share of voice is the
A) number of comments users are making on a product or a brand. B) percentage of comments users are making on the unique videos posted about a product or brand. C) brand’s percentage of all the online social media chatter related to a product category or topic. D) number of users tweeting about a brand or product. E) number of users chatting online about a brand or product.
117)
The number of times a Facebook page is loaded in a given time period is referred to as A) page views. B) page rate. C) page load rate. D) load rate. E) view rate.
118)
In terms of performance measures important to marketing managers, unique visitors are
Version 1
45
A) the total number of pages fans visit on any of a brand’s social media sites in a given time period. B) the total number of Facebook page views in one day. C) the total number of product website views on YouTube. D) visitors who post unique comments on a product’s Facebook page. E) the total number of different visitors to a Facebook page in a given time period.
119) Frequently used Facebook measures include________Blank (the number of people who have opted in to a brand’s messages at a given time) and________Blank (if someone visits five times in one day, he or she is counted once). A) followers; fans B) unique fans; visitors C) fans; unique visitors D) fans; unique page views E) followers; unique visitors
120) As a performance measure for social networks, the number of page views divided by visitors in a given time period is referred to as A) gross page views. B) the average page views per visitor. C) average website hits. D) the average website view rate. E) the overall interaction rate.
121) The performance measure for social networks known as average page views per visitor is the number of
Version 1
46
A) visitors who land on a brand’s Facebook page divided by the number who arrive by clicking on a Google ad. B) visitors to a brand’s website. C) visitors who view pages and comment in a given time period. D) page views divided by visitors in a given time period. E) total visitors to a website divided by those who click on a link.
122) As a performance measure for social networks, the total number of people who connect with a post (for example, “like” or make a comment) divided by the total number of people seeing the post is the A) fan rate. B) liker rate. C) reader rate. D) active receiver rate. E) interaction rate.
123)
As a performance measure for social networks, the interaction rate is the
A) total number of people who are fans of the post divided by the total number of people in the target demographic. B) number of people who “like” a post. C) number of people who read a post on a page divided by the total number of people seeing the post. D) number of people who connect with a post divided by the total number of people seeing the post. E) number of people who visit the product website and click on at least one link.
124)
As a performance measure for social networks, the click-through rate is the
Version 1
47
A) percentage of recipients who have clicked on a link on the page to visit a specific site. B) percentage of e-mail recipients who buy the product after receiving a targeted message with an embedded link. C) percentage of customers who buy a product from the brand website. D) total number of people who have visited a brand’s Facebook page and have become Facebook fans. E) total number of people who have purchased the product online divided by the number of people viewing the page.
125) As a performance measure for social networks, the percentage of recipients who have clicked on a link on the page to visit a specific site is the A) fan follow-through percentage. B) click-through rate. C) pass-through rate. D) recipient rate. E) website click rate.
126) Where a social network following comes from—with fans coming from a friend being more valuable than those coming from an ad—is referred to as a A) vlogger. B) friend domain. C) fan source. D) fan base. E) friend pool.
127)
A fan source is
Version 1
48
A) a pool of social media users with a propensity to interact with brands, including recommending them to friends. B) where a social network following comes from—with fans coming from a friend being more valuable than those coming from an ad. C) all Facebook fans in the target demographic for a particular brand. D) the number of fans who interact with a Facebook page. E) the number of fans who are evangelists for a brand.
128)
Performance measures for social media are
A) more likely to track short-term goals than those for traditional media. B) harder to track than traditional media such as newspapers and magazines because marketing managers can get real figures for the circulation numbers. C) easiest to track using Twitter. D) more specific than those for traditional media because of the ease of tracking online behavior. E) very predictive when it comes to anticipating what will “go viral.”
129)
All of these are social media performance measuresexcept which? A) click per fan B) cost per click C) cost per action D) cost per thousand E) click-through rate
130) Which firm co-sponsored the LeBronJames.com Half-Court Hero promotion, which consisted of an opportunity to go to Miami for a chance to win $75,000?
Version 1
49
A) Make-A-Wish Foundation B) Facebook C) Nestlé D) Pepsi E) Carmex
131) After Michael Drysch made his phenomenal hook shot in the Carmex Half-Court Hero promotion, the footage went viral and earned Carmex over 500 million media impressions across TV, print, online, and social media. The lesson here is to A) focus efforts on gaining YouTube views. B) ensure that social media does not explore controversial topics. C) look for ways to maximize social media because of its reach with younger audiences. D) match social media content with important social media influencers like LeBron James. E) focus efforts on sports-related media such as ESPN.com.
132)
Smart systems are
A) technology- and data-based networks that trigger actions by sensing changes in the real or digital world. B) highly organized social media campaigns that use avatars to promote a brand. C) social networking sites that allow for people to keep in touch with photos, videos, and short-text entries. D) financially successful social networking sites. E) programs that provide measures of an ad’s success on social networking sites.
133) Technology- and data-based networks that trigger actions by sensing changes in the real or digital world are known as
Version 1
50
A) global marketing platforms. B) convergent systems. C) intelligence technologies. D) smart systems. E) social networking sites.
134)
The convergence of real and digital worlds is the result of
A) the work of William Gibson, who coined the termcyberspace. B) the implementation of ideas found in science fiction films and books. C) a proliferation of interlinked social commerce technologies, databases and algorithms, and apps. D) innovations from Steve Jobs, the late visionary CEO of Apple, Inc. E) the researchers at Xerox Palo Alto Research Center (PARC).
135) The convergence of real and digital worlds has been made possible by all of theseexcept which? A) algorithms B) television C) databases D) apps E) social commerce technologies
136) Using Snapchat, Gucci offered a “try-on” lens to let users virtually try on the brand's latest sneakers and then make a purchase using a "Shop Now" button. This is an example of
Version 1
51
A) social commerce technologies. B) a database. C) an algorithm. D) webrooming. E) customerization.
137) Which of these is the largest analytical platform that can respond to queries in facts, photos, and direct answers? A) Wikipedia B) Twitter C) Facebook D) Bing E) Google
138)
Apps are A) computer-based networks that trigger actions by sensing changes in the real or digital
world. B) software programs to measure the number of times an ad loads on a web page. C) small, downloadable software programs that can run on tablet devices or smartphones. D) a failed marketing gimmick to advertise the benefits of smartphones. E) programs that can be used to organize large groups of people to form events on social networking sites.
139)
The product like cycle is of most concern for which app?
Version 1
52
A) Pandora B) Pinterest C) Angry Birds D) Netflix E) Bank of America
140) Even very successful video game apps can reach the decline stage of the product life cycle quickly, so Clash of Clans and Candy Crush Saga video games have sought to________Blank to address this challenge. A) make highly engaging games based on the Angry Birds approach B) use social media strategies C) build on a huge personal-rewards psychology for players D) quickly create new games E) create product extensions
141)
Which of these is a result of the convergence of the real and digital worlds?
A) a greater emphasis on traditional media since is more cost effective than social media B) an increased emphasis on mobile marketing C) a de-emphasis on social network communities in favor of functional ones, often global in nature D) the elimination of traditional media; all media will become digital E) the limitations of digital cash representing a hurdle to the expansion of e-commerce
142) ________Blank refers to the broad set of interactive messaging options that are used to communicate through personal mobile devices.
Version 1
53
A) Mobile marketing B) An increased emphasis on mobile marketing C) QR coding D) Digital promotion E) RFD algorithms
143)
Which smartphone app is made possible through mobile marketing? A) Instagram B) location-based promotions C) Twitter D) Candy Crush E) music-streaming services
144) The greatest concern consumers may have regarding the convergence of the real and digital worlds is A) the elimination of traditional media; all media will become digital. B) a decreased emphasis on measuring the marketing return on investment for social media initiatives. C) the interference with personal privacy as personal data gets shared within and across social media. D) the proliferation of ads and sponsored stories on social networking sites that reduce click-through rates. E) the absence of digital cash to complete the near field communication transaction process.
145) Which product was an important innovation for Body Glove and the source of inspiration for its brand name?
Version 1
54
A) an insulated base layer for outdoor activities B) a virtual surfing game C) a chemical heat pack D) a pregnancy pillow E) a neoprene wetsuit
146)
Body Glove’s partnership with Marquee Brands has helped it A) compete directly with online sites such as Macy’s online store. B) wage a battle against bullying being faced by young people. C) reward its online fans. D) expand the brand internationally. E) share images of favorite things by women for other women.
147)
Body Glove has employed all of these promotional methodsexcept which? A) billboards near popular outdoor sports locations B) sponsoring athletes from the surfing, diving, and wakeboarding communities C) print advertisements inSurfer,Wake,Outside, andVogue magazines D) three feature length films, known as the Drop Zone series E) a sampling program providing free surfing gear to social media influencers
148) Which social media network does Body Glove use as the foundation of its customer service function?
Version 1
55
A) Pinterest B) Facebook C) YouTube D) Twitter E) Instagram
149)
All of these are digital metrics used by Body Gloveexcept which? A) cost per impression B) e-commerce revenue C) click-through rates D) app downloads E) impressions
150)
One of Body Glove’s newest products is A) a dog wetsuit. B) flexible sunglasses. C) a motorized surfboard. D) an inflatable stand up paddleboard. E) a lightweight skateboard.
151)
What are social media? Give two examples.
152)
Describe the two factors that are used to classify social media.
Version 1
56
153)
What are the four guidelines to engage fans on Facebook?
154)
Describe how a brand manager can use carousel ads on Instagram?
155)
What are the main ways brand managers can use Twitter?
156)
Describe the process of creating brand “evangelists.”
157) What are the three performance measures brand managers typically use to assess the inputs or costs of social media? In your response, provide an example of what the payment terms would be for an advertiser. Also, identify the advantages and disadvantages of each metric.
Version 1
57
158) Describe 5 of the 10 performance measures brand managers typically use to assess outputs or revenues of social media.
159) What is meant by “convergence” of real and digital worlds? What are some of the marketing actions a brand manager can take to exploit the convergence?
160) What are apps and what significance do they have with respect to convergence of the real and digital worlds?
Version 1
58
Answer Key Test name: Chap 20_16e_Kerin 1) E 2) B 3) B 4) D 5) A 6) C 7) D 8) B 9) A 10) D 11) A 12) D 13) E 14) A 15) B 16) A 17) B 18) C 19) B 20) E 21) D 22) A 23) B 24) B 25) C 26) D Version 1
59
27) E 28) D 29) D 30) C 31) E 32) B 33) E 34) D 35) A 36) B 37) B 38) E 39) E 40) E 41) A 42) C 43) B 44) D 45) E 46) C 47) E 48) B 49) B 50) E 51) D 52) D 53) B 54) B 55) A 56) B Version 1
60
57) C 58) A 59) D 60) E 61) B 62) C 63) D 64) C 65) A 66) E 67) A 68) D 69) D 70) B 71) B 72) D 73) B 74) B 75) C 76) A 77) B 78) E 79) D 80) C 81) A 82) A 83) B 84) D 85) C 86) E Version 1
61
87) A 88) D 89) D 90) C 91) D 92) E 93) A 94) B 95) A 96) A 97) D 98) D 99) E 100) D 101) A 102) B 103) E 104) A 105) B 106) C 107) E 108) D 109) B 110) A 111) E 112) A 113) D 114) D 115) B 116) C Version 1
62
117) A 118) E 119) C 120) B 121) D 122) E 123) D 124) A 125) B 126) C 127) B 128) D 129) A 130) E 131) D 132) A 133) D 134) C 135) B 136) A 137) E 138) C 139) C 140) C 141) B 142) A 143) B 144) C 145) E 146) D Version 1
63
147) E 148) D 149) D 150) D
Version 1
64
CHAPTER 21 1) According to Lindsey Smith of GE Healthcare, all of these are necessary for a successful sales careerexcept which? A) motivation B) artistry C) team orientation D) integrity E) relationship building
2) According to Lindsey Smith of GE Healthcare, all of these have been necessary skills in serving customers in her sales customersexcept which? A) an MBA degree B) strategic thinking C) product knowledge D) communication skills E) analytical thinking
3)
Lindsey Smith’s goal at GE Healthcare is to
A) simplify sales presentations for technical products. B) increase the importance of the advertising element of the company’s promotion mix. C) develop a team of professionals in selling to and servicing key customers. D) create value in customer relationships by emphasizing the company’s product innovations, solutions, and service. E) establish brand recognition for Molecular Imaging Products as distinct from GE Healthcare.
4)
Lindsey Smith’s selling success at GE is due in large part to her
Version 1
1
A) developing relationships with CEOs and CFOs. B) using a team of sales personnel, technical specialists, and health care professionals in selling to and servicing key customers. C) continually reinforcing GE Healthcare’s competitive advantage. D) simplifying sales presentations for technical products. E) staying on top of marketing trends for business-to-business selling.
5) The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision is referred to as A) sales management. B) personal selling. C) sales promotion. D) direct selling. E) marketing management.
6) Personal selling requires the________Blank flow of communication between a buyer and a seller, often in a face-to-face encounter, designed to influence a person’s or a group’s purchase decision. A) direct B) indirect C) one-way D) two-way E) recurring
7)
Personal selling can use all of these modes of communicationexcept which?
Version 1
2
A) video teleconferencing B) Internet-enabled links between buyers and sellers C) a face-to-face encounter D) over the telephone E) social networks such as Facebook
8) Planning the selling program and implementing and evaluating the personal selling effort of the firm is referred to as A) relationship marketing. B) team selling. C) personal selling. D) sales engineering. E) sales management.
9)
Sales management refers to
A) the planning of the selling program and the implementing and evaluating of the personal selling effort of the firm. B) the process of allocating funds for direct selling. C) only the recruiting, hiring, and training of a company’s salesforce. D) the segmentation and selection of target markets to be addressed by a company’s salesforce. E) the two-way flow of communication between a buyer and seller, often in a face-toface encounter, designed to influence a person’s or group’s purchase decision.
10)
The tasks involved in managing personal selling include all of theseexcept which?
Version 1
3
A) selecting salespeople B) evaluating the performance of individual salespeople C) setting sales objectives D) organizing the salesforce E) designing new direct sales promotions to generate new sales
11)
Which task is involved in managing personal selling?
A) identifying potential target markets B) evaluating the performance of individual salespeople C) using salesforce input to make product modifications D) maintaining open communications between sales representatives and all other stakeholders E) designing new promotional campaigns for the purpose of generating new sales
12)
“Everyone lives by selling something” was an observation made by A) Steve Jobs. B) Ralph Waldo Emerson. C) Donald Trump. D) Robert Louis Stevenson. E) Lindsey Smith.
13) Personal selling serves several major roles in a firm’s overall marketing effort; for one, salespeople
Version 1
4
A) play a key role in research and development. B) are the company in a consumer’s eyes. C) play a dominant role in implementing an organization’s pull strategy. D) provide the most valuable resource for segmenting and selecting target markets. E) are one of many people in a firm that contacts potential customers.
14)
Personal selling may play a dominant role in a firm’s marketing program, especially if it A) sells convenience goods. B) has been unsuccessful with digital marketing. C) uses a push marketing strategy. D) has many standardized offerings. E) prefers below-market pricing strategies for its products.
15)
Which statement regarding the role of salespeople is most accurate?
A) Salespeople can identify creative solutions to customer problems. B) Salespeople have little say in a company’s account management policies. C) Salespeople truly know their customers and therefore are the best resource for segmenting and selecting target markets. D) Salespeople are the most highly trained of all a firm’s employees and therefore have the greatest job security. E) Salespeople are traditionally given greater authority than other company employees and therefore can offer customers the best financial terms for their purchases.
16)
Which statement regarding the role of salespeople is most accurate?
Version 1
5
A) Salespeople have little say in a company’s account management policies. B) Salespeople truly know their customers and therefore are the best resource for segmenting and selecting target markets. C) Salespeople are the most highly trained of all a firm’s employees and therefore have the greatest job security. D) Salespeople create customer value by providing follow-through after the sale. E) Salespeople are traditionally given greater authority than other company employees and therefore can offer customers the best financial terms for their purchases.
17)
Relationship selling refers to
A) the assignment of a single salesperson to a single customer throughout the entire sales process. B) suppliers and sellers combining their expertise and resources to create customized solutions, committing to joint planning and sharing of customer, competitive, and company information. C) the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time. D) the practice of using an entire team of professionals in selling to and servicing key customers. E) the practice of maintaining contact with a customer on a regularly scheduled basis following the initial sale of a product or service.
18) The practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time is referred to as A) order processing. B) order taking. C) customer value creation. D) relationship selling. E) partnership selling.
Version 1
6
19)
Relationship selling creates customer value primarily by
A) assigning a single sales representative to a single customer. B) maintaining a long-term connection involving mutual respect and trust. C) guaranteeing fair and equitable prices for each client regardless of the size of the purchase. D) providing cumulative discounts based on customer loyalty and the length of the customer relationship. E) guaranteeing fair and equitable sales practices for each customer regardless of the frequency of the purchase.
20) Recent research indicates that a salesperson’s________Blank can influence his or her drive to create customer value. A) VALS profile B) country of origin C) genetic predisposition D) education E) social class
21) There are________Blank genetic markers correlated with a salesperson’s predisposition or willingness to interact with customers and learn about their problems in order to meet their needs. A) six B) two C) three D) four E) five
Version 1
7
22) A salesperson who is guided by the idea, “I try to align customers who have problems with products that will help them solve their problems,” has which type of orientation? A) sales B) cognitive C) emotional D) customer E) compensatory
23) A salesperson who is guided by the notion, “I try to sell customers all I can to convince them to buy, even if I think it is more than a wise customer should buy,” has which type of orientation? A) sales B) cognitive C) emotional D) customer E) compensatory
24) Personal selling assumes many forms based on the________Blank and the________Blank to perform the sales task. A) size of the salesforce; financial outlay B) complexity of the product; amount of sales training C) amount of selling done; amount of creativity required D) amount of creativity; amount of sales training E) complexity of the product; financial outlay
25)
The three types of personal selling are order taking, order getting, and
Version 1
8
A) customer sales support. B) order fulfillment. C) order management. D) order processing. E) order shipment.
26)
Which of these is one of three types of personal selling? A) consumer targeting B) order processing C) lead generation D) order taking E) suggestive selling
27)
An order taker is a
A) salesperson who specializes in identifying, analyzing, and solving customer problems, but who does not actually sell products and services. B) salesperson who processes routine orders or reorders for products that were already sold by the company. C) salesperson who identifies prospective customers, provides them with information, persuades them to buy, closes sales, and follows up on their use of a product or service. D) person on the selling team who is responsible for obtaining qualified leads. E) member of the sales support team who does not directly solicit orders but rather concentrates on performing promotional activities and introducing new products.
28) A salesperson who processes routine orders or reorders for products that were already sold by the company is referred to as a(n)
Version 1
9
A) order getter. B) missionary salesperson. C) order taker. D) sales engineer. E) order processor.
29)
The primary responsibility of order takers is to A) “preach” the benefits of a new product or service to a customer rather than close the
sale. B) build market share in a sales territory. C) convince a customer from a competitor to switch to the firm’s product or brand. D) preserve ongoing relationships with existing customers and maintain sales. E) create a sense of goodwill not only to the brand but also to the entire product mix of the firm.
30) Two types of order takers exist.________Blank visit customers and replenish inventory stocks of resellers, whereas________Blank typically answer simple questions, take orders, and complete transactions with customers. A) Inside order takers; outside order getters B) Inside order takers; outside sales clerks C) Outside order takers; inside order takers D) Salesclerks; inbound telemarketers E) Inside order getters; outside order takers
31) Salespeople called________Blank visit customers and replenish inventory stocks of resellers, such as retailers or wholesalers.
Version 1
10
A) inside order takers B) outside order takers C) inbound telemarketers D) outbound telemarketers E) stock order takers
32)
Salespeople called outside order takers visit customers and A) solve most of the technical problems. B) sell products that have been tailored to their most recent needs. C) help design the product displays. D) train the personnel management. E) replenish inventory stocks of resellers.
33)
Outside order takers are most likely to A) arrange point-of-purchase displays. B) generate leads for new customers. C) help design the product displays. D) follow up with dissatisfied customers. E) lead technical programs to educate customers.
34) John works for American Greetings. His job description includes these responsibilities: (1) stock and arrange point-of-purchase displays of present customers—60 percent of his workweek and (2) receive orders from customers and complete the transactions—40 percent of his workweek. John is primarily engaged in which type of selling?
Version 1
11
A) outside order taking B) relationship selling C) inside order taking D) outside order getting E) missionary sales
35) A Frito-Lay salesperson who is taking inventory of available Doritos and Tostitos products at a supermarket is considered an A) inside order taker. B) interactive order taker. C) outside order taker. D) inventory clerk. E) outside order getter.
36) When a Frito-Lay salesperson takes an inventory of Doritos chips to ensure that the snacks are in adequate supply on retailers’ shelves, what form of buying decision does the store manager engage in? A) new buy B) modified rebuy C) straight rebuy D) team rebuy E) need rebuy
37)
Inside order takers are also referred to as
Version 1
12
A) managers. B) wait staff. C) prospectors. D) salesclerks. E) missionary salespeople.
38) Salespeople called________Blank typically answer simple questions, take orders, and complete transactions with customers. A) managers B) inside order takers C) directors D) outside order takers E) functional salespeople
39) Which type of salesperson would routinely be involved in an industrial straight rebuy situation? A) an order taker B) an order getter C) a missionary salesperson D) a sales engineer E) an outbound telemarketer
40) On a recent shopping excursion at a local Target store, Raul went from aisle to aisle selecting the products he needed. He bought a variety of products, including shampoo, toothpaste, and several pairs of socks. The only salesperson Raul encountered was the person at the checkout counter. The checkout person at Target would best be described as a(n)
Version 1
13
A) inside order getter. B) outside order getter. C) sales associate. D) inside order taker. E) outside order taker.
41) ________Blank are often employed by companies that use inbound telemarketing, such as for a retailer’s catalog phone banks. A) Inside order getters B) Missionary salespeople C) Sales associates D) Inside order takers E) Outside order takers
42) The use of toll-free telephone numbers that customers call to obtain information about products and make purchases is referred to as A) inbound telemarketing. B) outbound telemarketing. C) outbound videoconferencing. D) interactive marketing. E) multichannel selling.
43) Yiting called the Butterball toll-free hotline to learn how to prepare her Thanksgiving turkey and dressing. This telephone number is an example of
Version 1
14
A) interactive marketing. B) multichannel selling. C) outbound telemarketing. D) social networking. E) inbound telemarketing.
44) When Margot called the toll-free number to order one dozen water lilies from Van Ness Water Gardens, the firm was using A) interactive marketing. B) multichannel selling. C) inbound telemarketing. D) outbound telemarketing. E) social networking.
45) When Valeria called the toll-free number to order two children’s books from the Usborne catalog, the firm was using A) social networking. B) interactive marketing. C) multichannel selling. D) inbound telemarketing. E) outbound telemarketing.
46)
Which form of personal selling has thelowest requirement for problem solving?
Version 1
15
A) order taker B) order getter C) sales engineer D) missionary salesperson E) team selling
47)
An order getter is a
A) salesperson who specializes in identifying, analyzing, and solving customer problems, but who does not actually sell products and services. B) salesperson who processes routine orders or reorders for products that are presold by the outbound telemarketers. C) salesperson who sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service. D) person on the selling team who is responsible for obtaining qualified leads. E) member of the sales support team who does not directly solicit orders but rather concentrates on performing promotional activities and introducing new products.
48)
Which statement regarding order getters is most accurate? A) Order getting involves a high degree of creativity. B) Order getters often replenish a retailer’s inventories. C) Order getters handle orders obtained on inbound telemarketing. D) Order getters typically process reorders for products already sold by the company. E) Order getter sales calls traditionally require the lowest financial investment from the
firm.
49)
Which statement regarding order getters is most accurate?
Version 1
16
A) Order getters often replenish a retailer’s inventories. B) Order getters handle orders obtained on inbound telemarketing. C) Order getters require considerable product knowledge. D) Order getters typically process reorders for products already sold by the company. E) Order getter sales calls traditionally require the lowest financial investment from the firm.
50)
All of these statements regarding order getters are trueexcept which?
A) Order getters require considerable product knowledge. B) Order getters are most often used in new-buy or modified rebuy situations. C) Order getters include those who are involved in outbound telemarketing. D) Order getters typically represent products that have few options and highly standardized industrial products. E) Order getter sales calls require substantial investment from the firm.
51)
What percentage of a sales representative’s time is spent selling? A) 22 percent B) 34 percent C) 48 percent D) 59 percent E) 73 percent
52) Industry research shows that outside order getters, or field service representatives, spend 34 percent of their time selling, and another 17 percent is devoted to
Version 1
17
A) presentation preparation. B) travel. C) generating leads and researching customer accounts. D) administrative tasks like paperwork. E) training.
53)
Which statement regarding outside order getters is most accurate?
A) Order getters often replenish a retailer’s inventories. B) Order getters handle orders obtained on inbound telemarketing. C) Order getters typically process reorders for products already sold by the company. D) Order getters’ primary focus is on performing promotional activities and introducing new products. E) Order getter sales calls traditionally require the greatest financial investment from the firm.
54) It is estimated that the average cost of a single field sales call on a business customer is about________Blank, factoring in salespeople’s compensation, benefits, and travel-andentertainment expenses. A) $150 B) $250 C) $325 D) $400 E) $500
55) The practice of using the telephone rather than personal visits to contact customers is referred to as
Version 1
18
A) missionary selling. B) outbound telemarketing. C) cold canvassing. D) inbound telemarketing. E) team selling.
56) It is estimated that the average cost of an outbound telemarketing sales call on a business customer is about________Blank, versus $500 for a single field sales call. A) $2 to $4 B) $10 to $15 C) $20 to $25 D) $40 to $50 E) $80 to $100
57)
Missionary salespeople are
A) salespeople who specialize in identifying, analyzing, and solving customer problems, but who do not actually sell products and services. B) salespeople who process routine orders for products that are presold by the company. C) salespeople who identify prospective customers, provide customers with information, persuade customers to buy, close sales, and follow up on a customer’s use of the product or service. D) people on the selling team who are responsible for obtaining qualified leads. E) sales support personnel who do not directly solicit orders but rather concentrate on performing promotional activities and introducing new products.
58) Sales support personnel who do not directly solicit orders but rather concentrate on performing promotional activities and introducing new products are referred to as
Version 1
19
A) inside order takers. B) missionary salespeople. C) outside order getters. D) sales engineers. E) outbound telemarketers.
59) Which type of sales personnel concentrates on performing promotional activities but generally does not solicit actual sales orders? A) missionary salespeople B) sales engineers C) outside order getters D) inside order getters E) outbound telemarketers
60) Kayleigh works for Tyco Healthcare. Her job is to visit hospitals and meet with staff to explain the equipment that Tyco manufactures for use in operating rooms. Although she is part of her company’s salesforce, she does not directly solicit orders. Kayleigh is what type of salesperson? A) an inside order taker B) an outside order getter C) a missionary salesperson D) a sales engineer E) a sales team coordinator
61)
A sales engineer is a
Version 1
20
A) salesperson who specializes in identifying, analyzing, and solving customer problems and brings know-how and technical expertise to the selling situation, but often does not actually sell products and services. B) salesperson who processes routine orders or reorders for products that are presold by the company. C) salesperson who identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on a customer’s use of a product or service. D) person on the selling team who is responsible for supervising his or her company’s R&D expenditures. E) member of the sales support team who does not directly solicit orders but rather concentrates on performing promotional activities and introducing new products.
62) A salesperson who specializes in identifying, analyzing, and solving customer problems and brings know-how and technical expertise to the selling situation, but often does not actually sell products and services is referred to as a A) specialized order taker. B) designated order getter. C) missionary salesperson. D) sales engineer. E) sales technician.
63) The practice of using a group of professionals in selling to and servicing major customers is referred to as A) cooperative selling. B) missionary sales. C) sales engineering. D) team selling. E) partnership selling.
Version 1
21
64)
Team selling refers to the practice of
A) using an entire group of professionals in selling to and servicing major customers. B) sending an entire group of a firm’s sales representatives into the field. C) combining the expertise and resources of buyers and sellers to create customized solutions, commit to joint planning, and share customer, competitive, and company information for their mutual benefit, and ultimately the customer. D) sending a group of sales representatives to concentrate on performing promotional activities and introducing new products. E) assigning a group of sales representatives, each with his or her own unique product, to the same geographic sales territory to ensure that the company can meet the needs of these customers.
65)
Team selling would most likely be used by a company that sells A) file cabinets. B) washing machines. C) dining room tables. D) four-wheel drive sports utility vehicle (SUVs). E) automated industrial milling machines.
66) TransWave International is a company that markets patented electronic sensors as an early warning device for locating potential problems with buried pipelines. TransWave sends an environmental expert, a safety engineer, a legal representative to explain new regulations enacted by the U.S. Office of Pipeline Safety, and an experienced pipeline expert when it meets with a prospect. This is an example of how TransWave uses
Version 1
22
A) partnership selling. B) order getting. C) functional selling. D) sales engineering. E) team selling.
67)
The two basic forms of team selling are A) augmented selling and integrated selling. B) enterprise selling and strategic alliance selling. C) cross-functional teams and cross-tier teams. D) conference selling and seminar selling. E) network selling and matrix selling.
68) A method of selling in which a salesperson and other company resource people meet with buyers to discuss problems and opportunities is referred to as A) conference selling. B) team selling.seminar selling. C) seminar selling. D) outbound telemarketing. E) formula selling.
69)
In conference selling,
Version 1
23
A) buyers and sellers meet through a technology-based forum (like telephone or videoconference calls) because person-to-person meetings are too expensive. B) the sale has already been finalized but the buyer and seller meet to discuss delivery details. C) a salesperson and other company resource people meet with buyers to discuss problems and opportunities. D) a company team conducts an educational program for a customer’s technical staff, describing state-of-the-art developments. E) a form of mass selling occurs via electronic marketplaces such as eBay, Facebook, or Salesforce.com.
70)
Seminar selling is a method of personal selling in which
A) the company provides a free audit of the buyers’ purchase behaviors to identify any weaknesses and then provides formal training on more effective buying behaviors. B) a group of the organization’s R&D personnel conducts a product demonstration and training seminar for all major customers. C) salespeople and other company resource people meet with buyers to discuss problems and opportunities. D) a company sales team conducts an educational program for a customer’s technical staff to describe state-of-the-art developments. E) a company selling services tries to overcome the problems associated with the intangibility of service.
71) FloNetwork, Inc., is a company that has developed automation solutions for electronic marketing. Its software is able to handle all aspects of permission marketing-based campaigns from list generation and e-mail deployment to real-time tracking and in-depth analysis. To sell its system, the company conducts educational programs targeted to the technical staff in a prospective customer’s information technology (IT) department to discuss recent technological developments with the product. In this situation, FloNetwork uses
Version 1
24
A) partnership selling. B) seminar selling. C) conference selling. D) sales engineers. E) formula selling.
72) Today,________Blank percent of companies employ cross-functional teams of professionals to work with customers to improve relationships, find better ways of doing things, and create and sustain value for their customers. A) 15 B) 20 C) 45 D) 75 E) 90
73)
Many firms such as Xerox and IBM use a cross-functional sales practice known as A) collaborative selling. B) team selling. C) cooperative selling. D) account selling. E) formula selling.
74) DuPont assigned chemists, sales and marketing executives, and regulatory specialists to create and sell an herbicide for corn growers that recorded sales of $57 million in its first year. This type of sales approach is referred to as
Version 1
25
A) partnership selling. B) missionary selling. C) team selling. D) order taking. E) formula selling.
75) Procter & Gamble uses groups of marketing, sales, advertising, computer systems, and supply chain personnel to work with its major retailers, such as Walmart, to identify ways to develop, promote, and deliver products. This type of sales approach is called A) partnership selling. B) missionary selling. C) order taking. D) team selling. E) formula selling.
76) Pitney Bowes uses sales personnel, carrier management specialists, and engineering and administrative executives who continually work together to find ways to improve the technology involved in shipping goods across town and around the world. This type of sales approach is called A) team selling. B) formula selling. C) partnership selling. D) missionary selling. E) order taking.
77) The personal selling process begins with the________Blank stage and ends with the________Blank stage.
Version 1
26
A) preapproach; close B) preapproach; presentation C) prospecting; close D) prospecting; follow-up E) approach; close
78) Sales activities occurring before, during, and after the sale itself, and which consist of six stages, are referred to as A) the new-product process. B) the strategic marketing process. C) the personal selling process. D) the consumer purchase decision process. E) relational selling.
79)
The personal selling process is the A) activities that begin with the prospecting of potential leads to the final closing of a
sale. B) three sales activities that include identifying a customer with an unfilled need, identifying a product or service that could satisfy that need, and initiating a formalized exchange or sale. C) formalized sales protocol used by a company’s salesforce to ensure a consistent quality sales presentation. D) sales activities occurring before, during, and after the sale itself, consisting of six stages: prospecting, preapproach, approach, presentation, close, and follow-up. E) sequential steps taken to close a sale including finalizing product benefits, arranging for distribution, and obtaining payment.
Version 1
27
80) As shown in Figure 21-3, Box A is the ________Blank stage in the personal selling process.
A) approach B) preapproach C) presentation D) prospecting E) follow-up
Version 1
28
81) As shown in Figure 21-3, Box B is the ________Blank stage in the personal selling process.
A) approach B) preapproach C) presentation D) prospecting E) follow-up
Version 1
29
82) As shown in Figure 21-3, Box C is the ________Blank stage in the personal selling process.
A) approach B) close C) presentation D) prospecting E) follow-up
Version 1
30
83) As shown in Figure 21-3, Box D is the ________Blank stage in the personal selling process.
A) approach B) preapproach C) presentation D) prospecting E) follow-up
Version 1
31
84) As shown in Figure 21-3, Box E is the ________Blank stage in the personal selling process.
A) approach B) preapproach C) presentation D) prospecting E) follow-up
Version 1
32
85) As shown in Figure 21-3 above, Box F is the ________Blank stage in the personal selling process.
A) approach B) close C) presentation D) prospecting E) follow-up
86) The salesperson’s objective is to search for and qualify potential customers during which stage in the personal selling process? A) presentation B) approach C) prospecting D) follow-up E) preapproach
Version 1
33
87) The salesperson’s objective is to gather information and decide how to approach the prospect during which stage in the personal selling process? A) follow-up B) prospecting C) presentation D) preapproach E) approach
88) The salesperson’s objective is to gain a prospect’s attention, stimulate interest, and make a transition to the presentation during which stage in the personal selling process? A) presentation B) follow-up C) prospecting D) preapproach E) approach
89) The salesperson’s objective is to begin converting a prospect into a customer by creating a desire for the product or service during which stage in the personal selling process? A) approach B) preapproach C) presentation D) prospecting E) follow-up
90) The salesperson’s objective is to obtain a purchase commitment from the prospect and create a customer during which stage in the personal selling process?
Version 1
34
A) preapproach B) close C) follow-up D) approach E) presentation
91) The salesperson’s objective is to ensure that the customer is satisfied with the product or service during which stage in the personal selling process? A) follow-up B) prospecting C) presentation D) preapproach E) close
92)
Personal selling begins with the________Blank stage. A) lead B) presentation C) preapproach D) prospecting E) introduction
93) The search for and qualification of potential customers during the personal selling process is referred to as
Version 1
35
A) prospecting. B) customer mining. C) lead initiation. D) cold calling. E) filtering.
94)
What are the three types of prospects in personal selling? A) leads, prospects, and buyers B) leads, prospects, and qualified prospects C) cold, warm, and hot D) awareness, trial, and adoption E) primary leads, secondary leads, and final leads
95) a(n)
In personal selling, the name of a person who may be a possible customer is referred to as
A) “A” list. B) cold call. C) lead. D) prospect. E) qualified prospect.
96)
In personal selling, the customer who wants or needs the product is referred to as a
Version 1
36
A) hot lead. B) cold call. C) lead. D) prospect. E) qualified prospect.
97) In personal selling, a________Blank is an individual who wants a product, can afford to buy it, and is the decision maker. A) qualified prospect B) customer C) lead D) prospect E) gatekeeper
98) Which statement describes the major difference between a prospect and a qualified prospect? A) Prospects are more likely than qualified prospects to become customers. B) During the sales presentation, prospects are more likely to raise objections than qualified prospects. C) There are generally more qualified prospects than prospects. D) Qualified prospects have not only the need or desire for your product, but also the ability and authority to purchase it. E) A qualified prospect has purchased your product in the past and a prospect has not.
Version 1
37
99) Alice is a professional salesperson. She earns her living by selling advertising for The New York Times newspaper. In addition to selling to her regular accounts, she is responsible for generating new advertising accounts for the newspaper. Alice works hard to make sure the potential customers she sells to are qualified prospects. How can Alice know if the prospects are qualified? A) Qualified prospects have heard of and now have an interest in buying advertising in the newspaper. B) Qualified prospects are part of an industry that buys advertising in the newspaper. C) Qualified prospects have a need for the advertising, can afford to buy it, and have the authority to make the purchase decision. D) Qualified prospects will participate in the decision to buy the advertising as part of a cross-functional team. E) Qualified prospects read the newspaper daily and recognize that it is a good advertising medium.
100)
All of these tactics are used to generate leadsexcept which? A) cold canvassing B) suggestive selling C) toll-free numbers D) coupons E) trade shows
101) Advertising with a coupon, using a toll-free number, exhibiting at trade shows, using email, and making cold calls are all activities that would take place during the________Blank stage of the personal selling process.
Version 1
38
A) data mining B) preapproach C) approach D) presentation E) prospecting
102) During the prospecting stage of the personal selling process, some salespeople use websites, e-mail, and social networks, such as LinkedIn, to connect to individuals and companies that may be interested in their products or services, a practice known as________Blank selling. A) social B) suggesting C) digital D) presentation E) qualification
103) A method of selling in which a salesperson makes a telephone call or a visit to a prospective customer without a referral is called A) team selling. B) cold calling. C) preemptive canvassing. D) formula selling. E) telemarketing.
104)
Another name for cold calling is
Version 1
39
A) cold canvassing. B) telemarketing. C) hot canvassing. D) missionary selling. E) trial close selling.
105)
Which statement regarding cold canvassing is most accurate?
A) Currently, there are no federal regulations regarding cold canvassing. B) Finding a list to use for cold canvassing is its biggest challenge. C) Cold calling is the most common type of sales prospecting in Asia and Latin America. D) The majority of U.S. consumers consider cold canvassing an intrusion on their privacy. E) The Telephone Consumer Protection Act ensures the rights of telemarketers to call anyone listed in a public directory, whether they choose to be called or not.
106) Russ Berry Co. is a company that makes gifts and collectibles. When its southeastern sales representative is driving through a community on her way to make a sales call, she looks for small independent florists and gift shops. When she finds a retailer she knows is not carrying Russ products, she stops and makes a sales call. The company’s sales rep uses ________ to find its prospects. A) stimulus-response selling B) order taking C) cold canvassing D) formula selling E) telemarketing
Version 1
40
107) Mark wanted to make some extra money, so he went door-to-door in his neighborhood asking residents if they had any small jobs that they could hire him to perform. Mark had no idea of whether anyone had work for him, so he picked the houses randomly and knocked on the doors to see if anyone was home and perhaps interested in his services. In terms of the personal selling process, Mark was engaged in A) stimulus-response selling. B) showrooming. C) cold canvassing. D) closing. E) traffic generation.
108) Federal regulations contain provisions that allow consumers to avoid being called at any time for sales purposes through the________Blank and impose fines for violations. A) Do Not Disturb Registry B) Do Not Call Registry C) Do Not Interrupt Registry D) Do Not Infringe Registry E) Do Not Agitate Registry
109) In the personal selling process, a telemarketer for a life insurance firm who calls and asks the head of the household, “If you were to die tomorrow, would your family be cared for?” is engaged in A) stimulus-response selling. B) closing the sale. C) prospecting. D) order taking. E) creating a preapproach.
Version 1
41
110) Encyclopedia Britannica used to pay to have a business reply card bound into magazines adjacent to its advertisement. The ad asks people to return the card for more information on how its encyclopedias can help children do better in school. Encyclopedia Britannica was engaged in A) cold canvassing. B) order taking. C) sales follow-up. D) stimulus-response selling. E) prospecting.
111) At which stage in the personal selling process would the salesperson obtain further information about the prospect and decide on the best method of contact? A) prospecting B) preapproach C) approach D) presentation E) close
112)
What would most likely occur at the preapproach stage in a business selling situation?
A) The order getter would make initial contact with the order taker. B) The search for and qualification of prospects would begin. C) The initial meeting would transpire and business would be concluded. D) A decision would be made concerning whether the sale would be a straight rebuy, a modified rebuy, or a new buy. E) The prospect’s buying role, important buying criteria, and receptivity to a presentation would be determined.
113) Identifying the buying role of the prospect would be typically done at the________Blank stage of the personal selling process. Version 1
42
A) prospecting B) preapproach C) approach D) presentation E) closing
114)
The preapproach stage of the personal selling process is especially important in A) international sales. B) government sales. C) high technology product sales. D) high-ticket item sales. E) the sale of services.
115) Which statement regarding the preapproach stage with respect to international selling is most accurate? A) The preapproach protocol is standardized in most areas of the world. B) The preapproach stage is shorter and less intensive abroad than with domestic consumers. C) Customs are very important in dictating appropriate protocol. D) In most cases, the buyer rather than the seller initiates the contact between seller and buyer internationally. E) Pricing or price ranges are presented to the customer in order to determine if the customer is a qualified lead in most countries.
116) During the________Blank stage of personal selling, a salesperson would learn if her prospect liked to talk about sports before getting down to business or preferred not to waste time with idle chatter.
Version 1
43
A) prospecting B) preapproach C) approach D) presentation E) closing
117) At the________Blank stage in the personal selling process, a salesperson gains a prospect’s attention, stimulates interest, and builds the foundation for the sales presentation itself. A) approach B) prospecting C) preapproach D) qualifying E) trial close
118)
In the________Blank stage of the personal selling process, the first impression is critical. A) prospecting B) preapproach C) approach D) close E) follow-up
119) In the________Blank stage of the personal selling process, the cultural setting is very important for international sales as it may dictate a length of time for establishing a rapport.
Version 1
44
A) presentation B) prospecting C) preapproach D) approach E) close
120) In many societies outside the United States, considerable time is devoted to nonbusiness talk designed to establish a rapport between buyers and sellers. This occurs during the________Blank stage of the personal selling process. A) close B) approach C) preapproach D) presentation E) prospecting
121) Exchanging business cards in Asia must be done with respect, according to the customs and norms of the country or region. This protocol is considered important during which stage of the personal selling process? A) presentation B) follow-up C) preapproach D) close E) approach
122) At the________Blank stage in the personal selling process, a salesperson begins converting a prospect into a customer by creating a desire for the product or service he or she is selling.
Version 1
45
A) preapproach B) approach C) presentation D) close E) follow-up
123) The objective at the________Blank stage of the personal selling process is to convert a prospect into a customer by creating a desire for the product or service. A) presentation B) approach C) follow-up D) preapproach E) close
124) Which of these is one of three major presentation formats used in the personal selling process? A) cold calling format B) need-satisfaction format C) formula response format D) stimulus-selling format E) persuasive sales format
125)
All of these are sales presentation formatsexcept which?
Version 1
46
A) cold calling format B) canned sales format C) formula selling format D) need-satisfaction format E) adaptive selling format
126) A selling format that assumes that given the appropriate prompts by a salesperson, the prospect will buy is referred to as a A) formula selling presentation. B) stimulus-response presentation. C) stimulus-satisfaction presentation. D) stimulus-selling presentation. E) persuasive sales presentation.
127)
A stimulus-response presentation refers to a format that
A) focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. B) consists of information that must be provided in an accurate, thorough, and step-bystep manner to inform the prospect. C) assumes that given the appropriate appeal by a salesperson, the prospect will buy. D) involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information. E) emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers.
128) In a________Blank, the salesperson tries one appeal after another, hoping to “hit the right button.”
Version 1
47
A) formula selling presentation B) persuasive sales presentation C) categorical satisfaction presentation D) stimulus-response presentation E) progressive selling presentation
129) A salesclerk at L. L. Bean uses________Blank when he asks a customer if she also needs a pair of hiking socks with the purchase of her mountaineering boots. A) a stimulus-response presentation B) a transactional sales presentation C) need-satisfaction selling D) consultative selling E) formula selling
130)
Suggestive selling is a form of A) formula selling presentation. B) stimulus-response presentation. C) needs-satisfaction presentation. D) hard sell presentation. E) formalized sales presentation.
131) A waitress at a TGI Friday’s restaurant uses________Blank when she asks a party if they would like another round of drinks.
Version 1
48
A) inquiry selling B) formula selling C) suggestive selling D) method selling E) a canned sales presentation
132) Harry goes to the local Staples store to purchase a laptop. He asks many questions of the salesclerk, compares various models on display, and decides on the Sony Vaio. The salesperson then recommends to Harry that he purchase an extended warranty service contract for the computer. This is an example of A) inquiry selling. B) formula selling. C) method selling. D) suggestive selling. E) need-satisfaction selling.
133) A selling format that consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect is referred to as a A) traditional hard sell. B) formula selling presentation. C) stimulus-response presentation. D) needs-satisfaction presentation. E) straight rebuy sales pitch.
134)
A formula selling presentation is a format that
Version 1
49
A) emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers. B) focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. C) consists of information that must be provided in an accurate, thorough, and step-bystep manner to inform the prospect. D) assumes that given the appropriate stimulus by a salesperson, the prospect will buy. E) relies on exhibits at trade shows, professional meetings, and conferences.
135) When Tracy went to work as a new sales rep for Paradise Candles, she was told to use the following speech in her sales presentations: “Hello, Mr./Ms. (customer name). My name is (your name here). I’m calling on behalf of Paradise Candles. We carry the best wax-burning mechanical candles available in the commercial decorating industry….” Paradise Candles instructed Tracy to use A) a formula selling presentation. B) a stimulus-response presentation. C) a needs-satisfaction presentation. D) suggestive selling. E) consultative selling.
136)
A memorized, standardized message conveyed to every prospect is referred to as a A) stimulus-response presentation. B) canned sales presentation. C) directed selling presentation. D) mnemonic sales format. E) standardized sales format.
Version 1
50
137) Which type of sales presentation would be best suited for an inexperienced, less knowledgeable salesperson? A) need-satisfaction presentation B) stimulus-response presentation C) cold canvassing D) canned sales presentation E) directed selling presentation
138)
A canned sales presentation has some drawbacks, among them that it A) provides too little information to prospects. B) is difficult for inexperienced salespeople to use. C) allows little room for feedback from prospective customers. D) is too expensive and time consuming. E) lacks consistency.
139) The________Blank is a selling format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers. A) formula selling presentation B) stimulus-response presentation C) marketing concept presentation D) relationship selling presentation E) need-satisfaction presentation
140)
A need-satisfaction presentation is a format that
Version 1
51
A) uses computer, information, communication, and Internet technologies to make the sales presentation more effectively and efficiently. B) consists of information that must be provided in an accurate, thorough, and step-bystep manner to inform the prospect. C) assumes that given the appropriate stimulus by a salesperson, the prospect will buy. D) emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers. E) builds ties to customers based on a salesperson’s attention and commitment to customer needs.
141) The________Blank format, which emphasizes problem solving and customer solutions, is the sales format most consistent with the marketing concept and relationship building. A) canned sales B) formula selling C) persuasive selling D) need-satisfaction E) stimulus-response
142)
Two selling styles associated with the need-satisfaction presentation format are A) adaptive selling and confrontational selling. B) adaptive selling and consultative selling. C) suggestive selling and canned selling. D) adaptive selling and suggestive selling. E) suggestive selling and consultative selling.
Version 1
52
143) The car salesman asked you a few questions when you first arrived to the lot: “What type of driving do you do?” and “How many people will you usually have riding in your car?” and then suggested, “Maybe you should look at crossovers instead of sedans.” Here, the car salesman was using a A) stimulus-response presentation. B) formula selling presentation. C) need-satisfaction presentation. D) persuasive selling presentation. E) canned sales presentation.
144) Davidson-Uphoff & Co. sells ironware accessories for home and garden to retailers. The salespeople for this company are trained to ask probing questions such as, “What are the decorating trends in this region?” and “What are you doing to take advantage of this trend?” Once key ideas have been uncovered, the salesperson is taught to tailor his or her sales presentation so that the retailer can see why he or she should carry Davidson-Uphoff products. Davidson-Uphoff’s salespeople are learning the________Blank selling format. A) need-satisfaction B) formula C) stimulus-response D) creative E) problem resolution
145) A need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information, is referred to as
Version 1
53
A) relationship selling. B) adaptive selling. C) consultative selling. D) proactive selling. E) cooperative selling.
146)
Adaptive selling is a presentation format that
A) emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers. B) focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. C) consists of information that must be provided in an accurate, thorough, and step-bystep manner to inform the prospect. D) assumes that given the appropriate stimulus by a salesperson, the prospect will buy. E) involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.
147) Sales research and practice show that knowledge of the customer and sales situation are key ingredients for A) progressive selling. B) team selling. C) formula selling. D) adaptive selling. E) missionary selling.
Version 1
54
148) As a salesperson asks questions about a prospect’s transportation system, the prospect says, “What I really want is reliable transportation at the lowest price I can get.” The salesperson stops asking questions and pulls out a comparative price list that shows her company’s transportation is the lowest priced and most reliable on the market. The salesperson has engaged in A) adaptive selling. B) suggestive selling. C) formula selling. D) consultative selling. E) relationship selling.
149)
Consultative selling is a presentation format that
A) emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers. B) focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. C) consists of information that must be provided in an accurate, thorough, and step-bystep manner to inform the prospect. D) assumes that given the appropriate stimulus by a salesperson, the prospect will buy. E) involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.
150) A need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution, is referred to as A) adaptive selling. B) suggestive selling. C) formula selling. D) consultative selling. E) relationship selling.
Version 1
55
151) With________Blank, problem solutions are not simply a matter of choosing from an array of existing products or services. Rather, novel solutions often arise, thereby creating unique value for the customer. A) adaptive selling B) formula selling C) consultative selling D) suggestive selling E) relationship selling
152)
Consultative selling is very prominent in A) business-to-business marketing. B) business-to-government marketing. C) consumer-to-consumer marketing. D) consumer-to-business marketing. E) consumer-to-government marketing.
153) Recently, Gartner Research and 1To1 Media recognized Microsoft Dynamics Customer Relationship Management (CRM) and its xRM framework for delivering increased productivity and cost savings for customers worldwide. Microsoft experts work individually with customers to flesh out what issues they have and adapt their enterprise software to meet the unique needs of that customer. The Microsoft expert is most likely engaged in A) relationship selling. B) formula selling. C) suggestive selling. D) adaptive selling. E) consultative selling.
Version 1
56
154) Which two forms of selling are possible when a salesperson is viewed as an expert on problem recognition and resolution? A) adaptive selling and upselling B) formula selling and adaptive selling C) formula selling and suggestive selling D) suggestive selling and formula selling E) upselling and cross-selling
155) The practice of introducing a higher-end product solution than the one in question during the sales process is referred to as A) adaptive selling. B) cross-selling. C) formula selling. D) upselling. E) relationship selling.
156) The practice of proposing related or complementary products and services during the sales process is referred to as A) adaptive selling. B) cross-selling. C) formula selling. D) upselling. E) relationship selling.
Version 1
57
157) Sellers view a solution as a customized and integrated combination of products and services for meeting a customer’s business needs. Buyers think of a solution to a business problem as one that meets their requirements, is designed to uniquely solve their problem, can be implemented, and A) ensures follow-up. B) can be evaluated. C) is financially equitable. D) is ethical. E) is sustainable.
158) There are three key reasons for putting the customer into customer solutions in selling: (1) considerable time and effort is necessary to fully understand a specific customer’s requirements; (2) effective customer solutions are based on relationships among sellers and buyers; and (3) A) it is ultimately the customer who converts a lead into a sale. B) only the customer knows how much it is willing to pay for any given solution. C) consultative selling is central to providing novel solutions for customers, thereby creating value for them. D) only the salesperson knows when the solution has finally been found. E) customers are better able to articulate their problems and solutions than sellers.
159) In the context of the personal selling process, excuses for not making a purchase commitment or decision are referred to as A) rationalizations. B) equivocations. C) refusals. D) objections. E) qualifications.
Version 1
58
160)
There are six commonly used techniques to deal with objections, one of which is to A) redirect the conversation. B) defer to a supervisor. C) probe by asking additional questions. D) distract by identifying competitor shortcomings. E) deny.
161) When handling________Blank in sales, the professional approach can vary depending on the situation, from acknowledging and converting them to ignoring them when they seem to be a stalling tactic. A) rationalizations B) counteroffers C) refusals D) objections E) qualifications
162) Which statement could a salesperson use to acknowledge and convert the prospect’s objection into a reason for buying? A) “I think I might be able to explain that better to you after showing you this diagram.” B) “Yes, you’re right, it is lighter, but that is done intentionally to make your work easier.” C) “That’s true. It does have a shorter shelf life, but that really hasn’t been a problem. It is so popular it never stays on the shelf that long anyway.” D) “Where did you hear that? Your source must have erroneous information.” E) “As I was saying….”
Version 1
59
163) Parminder sells Mercedes-Benz automobiles. While making her sales presentation to a newly qualified prospect, the prospect said, “Parminder, I would really like to buy the car, but you know, the price of the automobile is just too high.” In order to answer the prospect’s objection, she responded, “Sir, you are correct. The price of the Mercedes-Benz automobile is high because of what you are getting for that price.” Parminder then proceeded to describe the quality of the materials used in the car, the high resale value of the car, and the dependability and prestige associated with the Mercedes-Benz brand. What technique did she use to handle the prospect’s objection? A) the postpone technique B) the agree and neutralize technique C) the denial technique D) the accept the objection technique E) the acknowledge and convert technique
164)
Which statement could a salesperson use to postpone a prospect’s objection?
A) “I think I might be able to explain that better to you by showing you a diagram after we have looked at these specs.” B) “Yes, you’re right, it is lighter, but that is done intentionally to make your work easier.” C) “That’s true. It does have a shorter shelf life, but that really hasn’t been a problem. It is so popular it never stays on the shelf that long anyway.” D) “Where did you hear that? Your source must have erroneous information.” E) “As I was saying….”
165) During the sales presentation, the prospect interrupted the salesperson’s presentation and said, “Wait a minute. This looks like it’s going to cost too much.” The salesperson responded, “I think you’ll be delighted with how relatively inexpensive this program is. I’ll address the subject of price in just a moment.” Which objection-handling technique has the salesperson used?
Version 1
60
A) acknowledge and convert the objection B) postpone C) agree and neutralize D) denial E) ignore the objection
166)
Which statement could a salesperson use to agree with and neutralize an objection? A) “I think I might be able to explain that better to you after showing you this diagram.” B) “Yes, you’re right, it is lighter, but that is done intentionally to make your work
easier.” C) “That’s true. It does have a shorter shelf life, but that really hasn’t been a problem. It is so popular it never stays on the shelf that long anyway.” D) “Where did you hear that? Your source must have erroneous information.” E) “As I was saying….”
167) During a sales call, you respond to a customer’s issue by saying courteously, “You’re absolutely right, and I am going to make it my business to be sure that never happens again.” Which method have you used to handle the customer’s objection? A) postpone B) denial C) agree and neutralize D) ignore E) convert
168)
Which statement should a salesperson use to accept the objection?
Version 1
61
A) “I think I might be able to explain that better to you after showing you this diagram.” B) “Yes, you’re right, it is lighter. Customers haven’t mentioned that as a problem—why do you think it might be?” C) “That’s true. It does have a shorter shelf life, but that really hasn’t been a problem. It is so popular it never stays on the shelf that long anyway.” D) “Where did you hear that? Your source must have erroneous information.” E) “As I was saying….”
169)
Which statement could a salesperson use as a denial response to a prospect’s objection? A) “I think I might be able to explain that better to you after showing you this diagram.” B) “Yes, you’re right, it is lighter, but that is done intentionally to make your work
easier.” C) “That’s true. It does have a shorter shelf life, but that really hasn’t been a problem. It is so popular it never stays on the shelf that long anyway.” D) “Where did you hear that? Your source must have erroneous information.” E) “As I was saying….”
170) At which stage of the personal selling process would a salesperson obtain a purchase commitment from the prospect? A) approach B) presentation C) closing D) follow-up E) sale
171) The closing stage in the selling process includes identifying telltale signals indicating a readiness to buy including
Version 1
62
A) body language, statements, and questions. B) questions, financial negotiation, and counteroffers. C) negotiations, questions, and requests for assurance. D) eye contact, body language, and requests for assurance. E) questions, statements, and financial negotiations.
172) Three closing techniques are used when a salesperson believes a buyer is about ready to make a purchase. They are________Blank closes. A) assumptive, trial, and presumptive B) trial, assumptive, and urgency C) presumptive, trial, and final D) trial, final, and urgency E) assumptive, presumptive, and final
173)
In personal selling, a trial close refers to
A) asking the prospect to make a decision on some aspect of the purchase. B) allowing the prospect to use or lease the item on a limited, temporary basis before making a final commitment of purchase. C) committing the prospect quickly by making references to the time limits of the purchase. D) making an exchange of money or other unit of value. E) asking the prospect to make choices concerning delivery, warranty, or financing terms.
174) Asking the prospect to make a decision on some aspect of the purchase is referred to as a(n)________Blank close.
Version 1
63
A) urgency B) preemptory C) presumptive D) trial E) final
175)
An assumptive close refers to
A) demanding the prospect to make a decision on some aspect of the purchase. B) allowing the prospect to use or lease the item on a limited temporary basis before making a final commitment of purchase. C) committing the prospect quickly by making references to the time limits of the purchase. D) making an exchange of money or other unit of value. E) asking the prospect to make choices concerning delivery, warranty, or financing terms.
176) At the end of her sales presentation, the salesperson asks, “Do you want to make monthly payments of $75 with a 10 percent down payment or would you prefer to write a check for the full amount today?” She has just made a(n) A) assumptive close. B) consultative close. C) proactive close. D) urgency close. E) adaptive close.
177)
An urgency close refers to
Version 1
64
A) asking the prospect to make a decision on some aspect of the purchase. B) allowing the prospect to use or lease the item on a limited temporary basis before making a final commitment of purchase. C) making an exchange of money or other unit of value. D) quickly committing the prospect by making references to the time limits of the purchase. E) asking the prospect to make choices concerning delivery, warranty, or financing terms.
178) Davidson-Uphoff & Co. sells ironware accessories for home and garden to retailers. When its salesperson told the prospect, “For this week only, we will pay all the shipping costs for new customers,” the salesperson was using a(n) A) reactive close. B) assumptive close. C) urgency close. D) consultative close. E) definitive close.
179) When a salesperson in the Apple store asks, “Will that be charge or cash?” he has executed which stage of the personal selling process? A) closing B) approach C) presentation D) handling objections E) follow-up
180) Russ Berry Co. sells stuffed animals and holiday gifts. When its salesperson asks a retailer, “Do you want to order the two dozen assorted bears or two dozen white-only bears?” he has executed which stage of the selling process? Version 1
65
A) approach B) presentation C) handling objections D) closing E) follow-up
181)
The final stage in the personal selling process is referred to as A) presentation. B) assumptive close. C) decision confirmation. D) urgency close. E) follow-up.
182) In the personal selling process, the stage that includes making certain the customer’s purchase has been properly delivered and installed and difficulties experienced with the use of the item are addressed is referred to as the________Blank stage. A) urgency close B) follow-up C) assumptive close D) presentation E) postpurchase evaluation
183) At which stage in the personal selling process would a salesperson ask the customer whether he or she is satisfied with the product?
Version 1
66
A) assumptive close B) final close C) urgency close D) follow-up E) postpurchase evaluation
184) One reason follow-up is so important is that research shows that the cost and effort to obtain repeat sales from a satisfied customer is roughly________Blank that necessary to gain a sale from a new customer. A) one-quarter B) one-half C) the same as D) twice E) triple
185) A representative from AT&T called Dr. Michaels after he switched to its U-verse telephone system. The firm wanted to make certain he was satisfied and asked if he had any questions concerning his new service. This is an example of a(n)________Blank call. A) assumptive B) preemptive C) follow-up D) prospecting E) courtesy
186) Sales management consists of three interrelated functions:________Blank, sales plan implementation, and salesforce evaluation.
Version 1
67
A) salesforce identification B) sales plan formulation C) salesforce communication D) salesforce size determination E) salesforce training
187) Figure 21-4 depicts the sales management process that involves three interrelated functions. Box A refers to
A) sales plan implementation. B) salesforce determination. C) salesforce communication. D) sales plan formulation. E) salesforce evaluation.
188) Figure 21-4 depicts the sales management process that involves three interrelated functions. Box B refers to
Version 1
68
A) sales plan implementation. B) salesforce determination. C) salesforce communication. D) sales plan formulation. E) salesforce evaluation.
189) Figure 21-4 depicts the sales management process that involves three interrelated functions. Box C refers to
A) sales plan implementation. B) salesforce determination. C) salesforce communication. D) sales plan formulation. E) salesforce evaluation.
190) ________Blank involves three tasks: setting objectives, organizing the salesforce, and developing account management policies. A) Sales plan analysis B) Sales plan formulation C) Sales plan introduction D) Sales plan evaluation E) Sales plan implementation
Version 1
69
191)
A sales plan is a
A) method of determining a fair and equitable compensation plan. B) method of identifying the target markets that most closely meet the special skills of the salesforce. C) method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a salesforce size figure. D) statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed. E) method that specifies times and places for direct communications between salespeople and their supervisor.
192) A statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed is known as a A) sales plan. B) salesforce framework. C) sales protocol. D) selling work order. E) sales assessment.
193) Formulating the sales plan involves three tasks: setting objectives, organizing the salesforce, and A) hiring sales reps. B) developing the marketing plan. C) establishing the budget. D) developing account management policies. E) identifying qualified leads.
Version 1
70
194) Which tasks are involved in the sales plan formulation stage of the sales management process? A) Recruit and select the salesforce, train the salesforce, and compensate the salesforce. B) Develop account management policies, implement the account management policies, and evaluate the account management policies. C) Set objectives, organize the salesforce, and develop account management policies. D) Organize the salesforce, establish quantitative assessment, and implement follow-up. E) Organize the salesforce, set motivational sales quotas, and evaluate the individual members of the salesforce.
195) Selling objectives can be________Blank and focus on dollar or unit sales volume, number of new customers added, and profit. Alternatively, they can be________Blank and emphasize the number of sales calls and selling expenses. A) input-related; output-related B) financially related; accounting-related C) short-term; long-term D) customer-related; salesperson-related E) output-related; input-related
196) The sales manager told the salesperson, “Your goal is to increase units sold for the second quarter 5 percent compared to the same period last year.” The sales manager voiced a(n)________Blank sales objective. A) output-related B) input-related C) behaviorally-related D) cold-call-related E) market-related
Version 1
71
197)
All of these are output-related sales objectivesexcept which? A) unit sales B) profit C) number of new customers D) number of sales calls E) dollar sales
198) The sales manager instructed the salesperson to “make at least 500 customer contacts between January 1 and July 1.” The sales manager voiced a(n)________Blank sales objective. A) output-related B) input-related C) behaviorally related D) customer-related E) market-related
199) One type of sales objective is________Blank, which is typically specific for each salesperson and includes his or her product knowledge, customer service, and selling and communication skills. A) output-related B) input-related C) profit-related D) expertise-related E) behaviorally related
200)
All of these are behaviorally related sales objectivesexcept which?
Version 1
72
A) communication skills B) customer service satisfaction ratings C) number of new customers D) selling skills E) product knowledge
201)
All of these are types of sales objectivesexcept which? A) input-related B) employer-related C) competitor-related D) behaviorally related E) output-related
202)
An effective sales plan objective should be A) general, measurable, and flexible. B) profitable, subjective, and measurable. C) precise, profitable, and flexible. D) precise, measurable, and time specific. E) general, flexible, and profitable.
203) Research indicates that 25 percent of U.S. salespeople engaged in business-to-business selling consider it________Blank to explicitly ask customers about competitors’ strategies such as pricing practices, product development efforts, and trade and promotion programs.
Version 1
73
A) essential B) ineffective C) unethical D) counterproductive E) impolite
204)
Organizing a selling organization includes answering all of these questionsexcept which?
A) Should the firm use independent agents such as manufacturer’s representatives? B) How many company salespeople should be employed? C) Should the salespeople be organized according to geography, customer type, or offering? D) Should the firm use its own salesforce? E) How should the salesforce be compensated?
205) A break-even chart for comparing independent agents and a company salesforce includes________Blank and________Blank. A) selling costs; sales revenues in dollars B) sales profits; percentage of market share C) salary compensation; commission compensation D) calls made; sales made E) number of independent agents; number of company salesforce personnel
206) An insurance company is considering using independent sales agents who would receive a 7 percent sales commission on sales or its own insurance salespeople who would receive a 5 percent commission, salaries, and benefits. Additionally, with a company salesforce, sales administration costs would be incurred for a total fixed cost of $650,000 per year. At what level of sales would independent salespeople be less costly to the firm?
Version 1
74
A) $650,000 B) $3,250,000 C) $6,500,000 D) $32,500,000 E) $35,200,000
207) If a company chooses to employ its own salesforce, the three basic organizational salesforce structures from which to choose are A) dollar volume, unit volume, and market share. B) NAICS, market size, and geography. C) geography, customer, and product. D) market size, market share, and market type. E) dollar volume, unit volume, and profit.
208)
Which is the simplest salesforce organizational structure? A) profit B) customer C) product D) geographical E) market
209) In a ________, the United States, or even the globe, is divided into regions and each region is divided into districts or territories.
Version 1
75
A) product/service sales organization B) customer sales organization C) geographical sales organization D) demographic sales organization E) NAICS sales organization
210)
An advantage of a geographical sales organization is that it A) is more effective and provides specialized customer support. B) minimizes travel time, expenses, and duplication of selling effort. C) has smaller costs for sales calls. D) reduces the number of salespersons in the salesforce. E) requires fewer sales managers.
211)
A geographical sales organization wouldnot be the best structure if A) a firm is trying to reduce duplication of selling effort. B) a firm is trying to minimize travel time. C) a firm’s products or customers require specialized knowledge. D) different buyers have similar needs. E) there is a need to increase the number of salespersons in the salesforce.
212) An office memo read, “Sales representatives from Kansas, Nebraska, Iowa, and Missouri will now report to the Midwest regional manager.” It would appear the company that issued the memo uses a________Blank sales organization for its salesforce.
Version 1
76
A) profit B) customer C) product D) geographical E) market
213) When different types of buyers have different needs, a________Blank sales organization structure is used. A) multi-reseller B) customer C) geographical D) market segmentation E) multilevel marketing
214) A sales organization practice whereby a different salesforce calls on each separate type of buyer or market channel is referred to as a A) multi-reseller organization. B) geographical sales organization. C) customer sales organization. D) product sales organization. E) multilevel marketing organization.
215)
A disadvantage of a customer sales organization is
Version 1
77
A) the need to assign just one salesperson to local, regional, national, and global territories. B) an increased need for multilingual salespeople. C) the smaller number of qualified sales managers. D) the need for close teamwork among a diverse salesforce. E) higher administrative costs and some duplication of selling effort.
216) The practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships is referred to as A) key account management. B) relationship marketing. C) relationship selling. D) customer account management. E) needs-satisfaction selling.
217)
Key account management refers to
A) the assignment of a single salesperson to a single customer throughout the course of the entire sale. B) the practice of assigning the highest performing salesperson to the clients with the most profitable accounts. C) the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships. D) a sales relationship that involves a face-to-face, person-to-person encounter rather than a sale made through extranets. E) the practice of occasionally making contact with a customer on a sporadic basis following the initial sale of a product or service.
Version 1
78
218) ________Blank involves the use of teams of sales, service, and technical personnel who work with purchasing, manufacturing, engineering, logistics, and financial executives in customer organizations. A) Sales analysis B) Formula selling C) Adaptive selling D) Consultative selling E) Key account management
219) Canam Canada specializes in the fabrication of steel joists, joist girders, and steel deck for use in commercial construction. Canam Canada offers value-added engineering support, architectural flexibility, and customized solutions and services. Canam Canada uses team selling that focus on important customers to build mutually beneficially, long-term, relationships. Teams include sales, service, and technical personnel to work exclusively with assigned customers. Canam’s salesforce practices are an example of A) unique account management. B) key account management. C) specialty account management. D) one-of-a-kind account management. E) consultative account management.
220) When specific knowledge is required to sell certain types of products or services, then a________Blank is used. A) territorial sales organization B) customer sales organization C) product sales organization D) geographical sales organization E) multilevel marketing sales organization
Version 1
79
221)
The advantage of a product sales organization is that
A) salespeople can develop expertise with technical characteristics, applications, and selling methods for a particular product. B) the number of salespersons in the salesforce can be reduced. C) there is a lower cost for sales calls since this method is chosen for products that inherently have little or no product variation. D) it significantly minimizes travel time, expenses, and duplication of selling effort from one territory to another. E) fewer sales managers are required since the salesforce is paid strictly on commission.
222)
The disadvantage of a product sales organization is
A) it increases the number of salespersons in the salesforce since most product sales organizations are based around standard rebuys. B) there is a larger cost for sales since this method is chosen for products that inherently have little or no product variation. C) it significantly maximizes travel time, expenses, and duplication of selling effort from one territory to another. D) it increases the requirement for more sales managers since the salesforce is paid strictly on commission, which acts as a significant self-motivator. E) it produces high administration costs and duplication of selling effort because two company salespeople may call on the same customer.
223) ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30 billion. At one time, ABB had a salesforce that sold only generators, one that sold only boilers, another that sold only transformers, and so forth. Each of its salespeople was an expert on the items he or she sold. Its salesforce was organized by
Version 1
80
A) workload. B) customer. C) geography. D) product. E) size.
224)
The workload method
A) determines a fair and equitable compensation plan based on a weighted system for sales of different types of items or from different-sized territories. B) identifies the target market that most closely meets the special skills of the salesforce. C) determines the size of a salesforce by integrating the number of customers served, call frequency, call length, and available selling time to arrive at a salesforce size figure. D) describes what is to be achieved and where and how the selling effort of salespeople is to be deployed. E) determines when a company’s salesforce becomes more profitable than independent sales agents to sell its company’s products.
225) A formula-based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a salesforce size is referred to as the A) workload method. B) workhorse method. C) salesforce staffing formula. D) salesforce territory distribution matrix. E) salesforce allocation method.
226) The________Blank is a common formula-based approach for determining the size of a salesforce.
Version 1
81
A) sales response function B) account management framework C) workhorse method D) salesforce allocation method E) workload method
227) Diamond Line is a distributor of everything a florist needs to create a beautiful arrangement except the flowers. It sells to 10,000 flower and gift shops and 5,000 supermarkets nationwide. Each florist is called on four times a month, and each supermarket is called on twice a month. Assume a 52-week calendar year and that each salesperson takes a four-week vacation. A sales call to a florist takes one hour, and a sales call to a supermarket takes two hours of selling time. An average salesperson spends 1,000 hours per year making sales calls. The number of salespeople Diamond Line needs to cover its account base is A) 15. B) 52. C) 240. D) 480. E) 720.
228) Policies that specify who salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out are referred to as A) sales response management policies. B) key account management policies. C) account management policies. D) customer management policies. E) salesforce management policies.
Version 1
82
229)
Account management policies
A) specify how salespeople will be compensated and how sales performance will be evaluated. B) specify which products or services will be offered to which consumers, through which outlets, and at what price. C) specify the organizational structure of the salesforce and set the sales goals for both individual sales representatives and the salesforce as a whole. D) specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out. E) determine the sales quotas for the upcoming year based upon past sales performance and current estimates of demand.
230) Aspects of________Blank policies might include which individuals in a buying organization should be contacted, the amount of sales and service effort that different customers should receive, and the kinds of information salespeople should collect before or during a sales call. A) sales response management B) account management C) sales administration D) customer interaction E) prospect administration
Version 1
83
231) Consider Figure 21-7, which is an account management policy grid that groups customers according to the level of opportunity and the firm’s competitive sales position. Box A represents which account management policy?
A) accounts that the firm should consider replacing personal calls with telephone sales or direct mail to service accounts B) accounts that should emphasize a heavy sales organization position or shift resources to other accounts if a stronger sales organization position is impossible C) accounts that offer a poor opportunity because they have high levels of competition D) accounts that should receive a high level of sales calls and service to retain and possibly build accounts E) accounts that should receive moderate level of sales and service to maintain current position of sales organization
Version 1
84
232) Consider Figure 21-7, which is an account management policy grid that groups customers according to the level of opportunity and the firm’s competitive sales position. Box B represents which account management policy?
A) accounts that the firm should consider replacing personal calls with telephone sales or direct mail to service accounts B) accounts that should emphasize a heavy sales organization position or shift resources to other accounts if a stronger sales organization position is impossible C) accounts that offer a poor opportunity because they have high levels of competition D) accounts that should receive a high level of sales calls and service to retain and possibly build accounts E) accounts that should receive moderate level of sales and service to maintain current position of sales organization
Version 1
85
233) Consider Figure 21-7, which is an account management policy grid that groups customers according to the level of opportunity and the firm’s competitive sales position. Box C represents which account management policy?
A) accounts that the firm should consider replacing personal calls with telephone sales or direct mail to service accounts B) accounts that should emphasize a heavy sales organization position or shift resources to other accounts if a stronger sales organization position is impossible C) accounts that offer a poor opportunity because they have high levels of competition D) accounts that should receive a high level of sales calls and service to retain and possibly build accounts E) accounts that should receive moderate level of sales and service to maintain current position of sales organization
Version 1
86
234) Consider Figure 21-7, which is an account management policy grid that groups customers according to the level of opportunity and the firm’s competitive sales position. Box D represents which account management policy?
A) accounts that the firm should consider replacing personal calls with telephone sales or direct mail to service accounts B) accounts that should emphasize a heavy sales organization position or shift resources to other accounts if a stronger sales organization position is impossible C) accounts that offer a strong opportunity because they have low levels of competition D) accounts that should receive a high level of sales calls and service to retain and possibly build accounts E) accounts that should receive moderate level of sales and service to maintain current position of sales organization
235) When using an account management policy grid, an account would replace personal calls with telemarketing or direct mail if the account opportunity level assessment is Version 1
87
A) high and the sales organization has a strong competitive position. B) low and the sales organization has a strong competitive position. C) high and there is a likelihood that a strong competitive position can be achieved in the future. D) low and the sales organization has a low competitive position. E) high and the sales organization has strong competitive position.
236) When using an account management policy grid, an account would receive a high level of sales calls if the account opportunity level assessment is A) high and the sales organization has a weak competitive position. B) low and the sales organization has a strong competitive position. C) high and there is a likelihood that a strong competitive position can be achieved. D) low and the sales organization has a low competitive position. E) high and the sales organization has strong competitive position.
237) There are three major tasks involved in the implementation stage of the sales management process: salesforce motivation and compensation, sales enablement, and A) salesforce recruitment and selection. B) developing account management policies. C) assignment of territories and accounts. D) setting sales objectives. E) salesforce evaluation.
238) Which of these is one of the three major tasks involved in the implementation stage of the sales management process?
Version 1
88
A) setting sales objectives B) developing account management policies C) sales enablement D) salesforce evaluation E) assignment of territories and accounts
239) One of the most crucial tasks of sales management is________Blank; it begins with a carefully crafted job analysis. A) salesforce evaluation B) setting sales objectives C) developing account management policies D) salesforce motivation and compensation E) effective recruitment and selection of salespeople
240)
Job analysis is a
A) thorough evaluation of a salesperson’s performance based upon both input and output objectives. B) detailed assessment to determine what occurred at which stage in the selling process that prevented a qualified lead being converted into a sale. C) study of a particular sales position, including how the job is to be performed and the tasks that make up the job. D) protocol used to assign relative weights to various aspects of the selling process to create an individualized compensation plan. E) written document that describes the job relationships and requirements that characterize each sales position.
241)
Information from a________Blank is used to write a job description.
Version 1
89
A) job analysis B) salesforce compensation plan C) sales plan D) sales performance audit E) personal performance plan
242) A(n)________Blank is a written document that describes job relationships and requirements that characterize each sales position. A) sales plan B) job analysis C) employee contract D) job description E) personal performance plan
243) Applied to recruiting and selecting salespeople, a________Blank includes to whom a salesperson reports, how he or she interacts with other company personnel, and the customers to be called on. A) job description B) sales plan C) job analysis D) sales performance audit E) personal performance plan
244)
All of these are aspects of a job description for a salespersonexcept which?
Version 1
90
A) the physical and mental demands of the job B) the customers to be called on C) the types of products and services to be sold D) to whom a salesperson reports E) salary requirements
245) A job description is a written document that describes job relationships and requirements that characterize each sales position. Once established, the job description is then translated into a statement of job A) credentials. B) training C) qualifications. D) requirements. E) education.
246) The aptitudes, knowledge, skills, and a variety of behavioral characteristics considered necessary to perform a job successfully are contained in a statement of job A) credentials. B) training. C) education. D) experience. E) qualifications.
247) Attributes such as imagination and problem-solving ability, strong work ethic, honesty, intimate product knowledge, effective communication and listening skills, and attentiveness reflected in responsiveness to buyer needs and customer loyalty and follow-up are often found in the________Blank for sales positions.
Version 1
91
A) job analysis B) job description C) statement of job credentials D) statement of job qualifications E) statement of job experience
248) All of these are elements in a statement of job qualifications for an order-getting salespersonexcept which? A) honesty B) the preferred customer type C) imagination and problem-solving ability D) responsiveness to buyer needs E) effective communication and listening skills
249) The ability to understand one’s own emotions and the emotions of people with whom one interacts on a daily basis is referred to as A) empathetic intelligence. B) responsive empathy. C) emotional intelligence. D) subliminal intelligence. E) cognitive empathy.
250)
Emotional intelligence is
Version 1
92
A) the ability to anticipate and overcome a potential customer’s objections. B) a method of measuring the potential of people who have not had formal schooling. C) a measurement to determine a person’s patience in stressful selling situations. D) the ability to pick up personal cues, ticks, or tells that helps salespeople read their customers in order to make a sale. E) the ability to understand one’s own emotions and the emotions of people with whom one interacts on a daily basis.
251)
Which of these is one of the five dimensions of emotional intelligence? A) honesty B) sense of humor C) impulse management D) the ability to be positive E) a need to be in control
252)
All of these are dimensions of emotional intelligence except which? A) the ability to manage one’s emotions and impulses B) social skills C) transparency D) self-motivation skills E) empathy
253) ________Blank is the process of providing the sales organization with the information, content, and tools that help salespeople sell more effectively.
Version 1
93
A) Salesforce preparation B) Sales coaching C) Performance selling D) Sales enablement E) Sales training
254)
Sales enablement is the process of providing the sales organization with
A) prospects and leads that will yield profitable customer relationships. B) performance metrics that will be motivational for sales personnel. C) the information, content, and tools that help salespeople sell more effectively. D) a portfolio of products that have meaningful points of difference that are easily understood by customers. E) access to competitive intelligence that reveals changes in the industry.
255)
Which statement about sales enablement is most accurate?
A) Sales enablement is basically a seminar on effective sales techniques. B) A major flaw in the sales industry is a lack of employer-sponsored training and coaching. C) Sales ability is instinctive; it cannot be taught. D) Sales enablement is an ongoing process, with training and coaching for both new and seasoned salespeople. E) Sales enablement is one of the few areas in marketing that has not been impacted by technology.
256) Research suggests that proper compensation, incentives, or rewards are necessary to produce a motivated sales person, along with several other factors including which of these?
Version 1
94
A) an opportunity for leadership experience B) a personal need for achievement C) constructive criticism D) adequate time for bookkeeping and paperwork E) a moderate degree of competitive spirit within a team
257)
Salespeople are paid using one of three plans:
A) incremental salary, input-based commission, and output-based commission. B) straight salary, straight commission, and graded-scale competitive pay. C) percentage of sales, percentage of profits, and straight salary. D) straight salary, straight commission, and a combination of salary and commission. E) straight commission, percentage of market share, and a combination of market share and commission.
258)
With a________Blank, a salesperson is paid a fixed fee per week, month, or year. A) sales response compensation plan B) combination compensation plan C) straight salary compensation plan D) straight commission compensation plan E) market share compensation plan
259)
An advantage of the straight salary compensation plan is that it
Version 1
95
A) provides an incentive to expand sales volume. B) can be easily adapted to changes in the economy. C) doesn’t include non-selling activities that take time away from selling. D) allows salaries to be lower. E) is easy to administer.
260) When Daniel was hired to work for Bush Refrigeration Co., he was told, “The sales training program is 18 weeks, and we’ll pay you $750 per week during that time.” While in training, the company used a________Blank to compensate Daniel for his time and effort. A) sales response compensation plan B) combination compensation plan C) straight salary compensation plan D) straight commission compensation plan E) market share compensation plan
261)
A straight commission compensation plan is one
A) that assigns the same commission dollar value regardless of a product’s value, number sold, or difficulty level of the sales effort. B) in which a salesperson is paid a specified salary plus a commission and/or bonus on sales generated. C) that determines fair and equitable compensation that includes a weighted system for different types of items or different sized territories. D) in which the salesperson is paid a fixed amount per week, month, or year. E) in which a salesperson’s earnings are directly tied to the sales or profits he or she generates.
262) With a________Blank, a salesperson’s earnings are directly tied to sales or profits generated. Version 1
96
A) sales response compensation plan B) combination compensation plan C) straight sales compensation plan D) straight commission compensation plan E) market share compensation plan
263)
A disadvantage of a straight commission compensation plan is that A) it does not provide incentive to expand sales volume. B) it can discourage salespeople from providing customer service. C) it includes non-selling activities that take time away from selling. D) the overall compensation is usually lower than a straight salary compensation plan. E) it not perceived as equitable by most salespeople.
264)
A straight commission compensation plan is well-suited to sales positions where A) non-selling activities are minimal. B) there is lively competition in the industry. C) no technological background is necessary. D) most salespeople are working toward management positions. E) extensive non-selling activities are essential for closing a sale.
265) After completing an 18-week sales training program, Joshua was told, “You will be paid 4 percent on net dollar volume up to $10 million. Sales in excess of $10 million command a rate of 6 percent.” The company Joshua works for is using a________Blank for him after completing the sales training program.
Version 1
97
A) sales response compensation plan B) combination compensation plan C) straight sales compensation plan D) straight commission compensation plan E) market share compensation plan
266) With a________Blank, a salesperson is paid a specified salary plus a commission on sales or profits generated. A) sales response compensation plan B) combination compensation plan C) sales plus compensation plan D) modified commission compensation plan E) market share compensation plan
267)
The most frequently used type of compensation plan for salespeople is a A) straight salary compensation plan. B) straight commission compensation plan. C) combination compensation plan. D) weighted compensation plan. E) market share compensation plan.
268) At White Chemical Co., management is examining its selling strategy and wants to acknowledge the role its sales staff has in undertaking sales support (non-selling) activities, yet keep the salespeople directed toward increasing sales for the next year. What option is most likely to be appropriate here?
Version 1
98
A) Provide a base salary and a commission on sales generated. B) Give a raise to every salesperson as a motivational incentive. C) Provide year-end bonuses to reward the salesforce personnel who perform the best. D) Offer straight salaries and give raises if the sales go up. E) Offer straight commission and if sales improve, raise the commission rates.
269)
Which statement regarding salesforce compensation plans is most accurate? A) The most preferred compensation plan among salespeople is the straight commission
plan. B) Nonmonetary rewards are not very effective as salesforce motivators. C) New recruits are often more productive than seasoned professionals. D) Ineffective practices often lead to costly salesforce turnovers. E) The expense of training a new salesperson, including the cost of lost sales, is still lower than having to use a salary plus commission plan.
270) ________Blank gives its outstanding salespeople some unconventional rewards that include new pink Cadillacs and jewelry. A) Avon B) General Motors C) Tiffany & Co. D) Pampered Chef E) Mary Kay Cosmetics
271) Quantitative assessments of sales performance may be based on input-related objectives set forth in the sales plan, such as those involving
Version 1
99
A) new sales, new lead generation, and customer billing. B) sales calls, selling expenses, and account management policies. C) selling expenses, profits generated, and account management policies. D) new lead generation, sales quotas, and sales increases over the previous evaluation period. E) recruitment, selection, and training of new sales representatives.
272) Quantitative assessments of sales performance may be based on output-related measures, such as A) dollar or unit sales volume, last year/current year sales ratio, and new accounts generated. B) sales calls, selling expenses, and account management policies. C) selling expenses, profits generated, and emotional intelligence quotient. D) new lead generation, sales quotas, and sales increases over the previous evaluation period. E) recruitment, selection, and training of new sales representatives.
273) All of these are output-related measures used in quantitative assessments of sales performanceexcept which? A) new accounts generated B) dollar or unit sales volume C) sales of specific products D) selling expense related to sales made E) current sales ratio
274) A________Blank contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.
Version 1
100
A) sales call report B) selling expense report C) sales quota D) sales audit report E) salesforce plan
275)
A sales quota is the
A) ratio of sales calls made to actual sales closed. B) minimum number of sales that must be made before a salesperson can be paid. C) maximum threshold for satisfactory performance during an annual performance evaluation. D) maximum number of sales that can be made before receiving a commission on sales. E) specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.
276) A sales quota contains goals, such as last year/current year sales ratio, accounts generated, profit achieved, or A) sales of specific products. B) new clients contacted. C) reports filed. D) complaints received. E) customer enquiries.
277)
All of these are behavioral measures that are used to evaluate salespeopleexcept which?
Version 1
101
A) attitude B) product knowledge C) sales D) communication skills E) appearance
278) Behavioral measures used to evaluate salespeople include assessments of a salesperson’s________Blank, attention to customers, product knowledge, selling and communication skills, appearance, and professional demeanor. A) attitude B) sales level C) intelligence D) personal values E) personal ethics
279) About 60 percent of U.S. companies now include________Blank as a behavioral measure of salesperson performance. A) the ability to read body language B) customer satisfaction C) suggestive selling skills D) emotional intelligence E) cold canvassing skills
280) About 60 percent of U.S. companies now include customer satisfaction as a(n)________Blank measure of salesperson performance.
Version 1
102
A) demonstrative B) sensitive C) cognitive D) emotional E) behavioral
281) MooreChem created a marketing dashboard for each of its sales representatives. These dashboards included seven measures—sales revenue, gross margin, selling expense, profit, average order size, new customers, and customer satisfaction. Each metric was gauged to show actual salesperson performance A) in terms of company rank. B) relative to the rest of the sales team. C) relative to target goals. D) plus expectations for the next two years. E) based upon previous years of experience.
Version 1
103
282) Consider the Marketing Dashboard, which includes metrics for salesperson performance tracking for MooreChem. As a MooreChem sales manager, you note that one of your salespeople has exceeded his sales target but is well below his profit goal. The best explanation for this performance is
Salesperson Performance Tracking Marketing Dashboard at MooreChem A) the salesperson has not made enough sales calls. B) the salesperson is selling too many high margin products. C) the salesperson’s sales quota is too low. D) the salesperson is selling too many low margin products. E) the salesperson’s sales quota is too high.
283) The use of various technologies to make the selling function more effective and efficient is referred to as A) automated selling. B) direct selling. C) salesforce automation. D) salesforce computerization. E) salesforce networking.
284)
SFA is an acronym for
Version 1
104
A) salesforce automation. B) sales factory automation. C) sales flexible automation. D) sales functional automation. E) sales frequency automation.
285) Salesforce automation is the use of________Blank to make the sales function more efficient and effective. A) avatars B) emotional intelligence C) account management policies D) technology E) suggestive selling techniques
286)
Sales force automation is typically applied to all of theseexcept which? A) product and sales training B) communication between sales managers and the salesforce C) account development and analysis D) proposal generation E) order processing
287) Toshiba America Medical Systems salespeople use________Blank with capabilities to provide interactive presentations for their computerized tomography (CT) and magnetic resonance imaging (MRI) scanners.
Version 1
105
A) laptop computers B) tablet devices C) order processing software D) presentation software E) smartphones
288) Salespeople for Timex watches use their laptop computers to process orders, plan time allocations, and forecast sales. This use of________Blank helps free up time for the Timex salesforce provide enhanced customer service. A) time management software B) customer experience software C) salesforce automation D) proposal generation software E) marketing automation
289) ________Blank is a sophisticated combination of analytical techniques that applies systems and technologies, including artificial intelligence (AI) algorithms, to provide insights to salespeople. A) Time management software B) Customer service and support automation C) Sales force automation D) Proposal generation software E) Marketing automation
290) With marketing automation,________Blank can identify qualified prospects from leads, provide support preapproach and approach strategies, track the customer buying process, and identify opportunities for upselling and cross-selling.
Version 1
106
A) blockchain technologies B) the internet of things C) salesforce automation D) cold canvassing E) artificial intelligence
291) ________Blank consists of processes and technologies that supply customers with information about postsale activities, including installation, repair, replacement, and replenishment, and technical expertise pertaining to products. A) Time management software B) Customer service and support automation C) Sales force automation D) Warranty software E) Marketing automation
292) Two features of successful________Blank are the availability of “live chat” opportunities and the ability to provide a single source for customer problem solving. A) time management software B) customer service and support automation C) sales force automation D) warranty software E) marketing automation
293) ________Blank has recently been the fastest growing team sport at the youth, high school, college, and professional levels, which bodes well for sales at sports equipment company Cascade Maverik.
Version 1
107
A) Rugby B) Football C) Volleyball D) Soccer E) Lacrosse
294) The salesforce structure at Cascade Maverik is a________Blank one, with key accounts typically based in highly populated areas. A) geographical B) product C) hierarchical D) team E) customer type
295) During the________Blank step of sales plan implementation, Cascade Maverik looks for individuals that are self-motivated, have a positive attitude, and understand the team mentality. A) motivation and compensation B) performance C) recruitment and selection D) presentation E) enablement
296) Which of these is one of the key attributes for potential salesforce recruits at Cascade Maverik?
Version 1
108
A) portray a casual attitude B) resistant to structure C) expect explicit direction D) understand the team mentality E) sensitive
297) An important component of the salesforce training at Cascade Maverik is________,Blank including participating in sales calls and presentations with senior salespeople. A) administrative B) on-the-job C) computer-based D) corporate office-based E) role play-based.
298) At Cascade Maverik, compensation is a combination of salary and commission. According to a sales manager, “salary allows our employees to step into their role confidently, and commission is about________Blank.” A) competition B) persuasion C) motivation D) isolation E) reform
299) A sales representative at Cascade Maverik reports that she spends about 25 percent of her time on the________Blank stage of the personal selling process, “finding potential leads, talking to coaches.”
Version 1
109
A) closing B) presenting C) approaching D) prospecting E) follow-up
300) During the________Blank stage of the personal selling process, a sales representative at Cascade Maverik must check with the purchasing coach or athletic director to see whether the equipment is meeting his or her expectations. A) closing B) presenting C) approaching D) prospecting E) follow-up
301)
Explain the difference between personal selling and sales management.
302)
What are the three major roles of personal selling in a firm’s overall marketing effort?
303)
Define relationship selling.
Version 1
110
304)
Explain the difference between order takers and order getters.
305)
Explain the role of missionary salespeople and sales engineers in the selling process.
306) What are the six stages of the personal selling process? What is the objective of each stage?
307)
Explain the difference between a lead, a prospect, and a qualified prospect.
308) Explain the difference between the stimulus-response presentation format and the formula selling presentation format.
Version 1
111
309)
What assumption does the stimulus-response presentation format make?
310)
What are the keys to effective need-satisfaction presentations?
311) Describe the need-satisfaction presentation format. In the answer, include the two selling styles that are common with this format.
312) During the presentation stage, a salesperson may encounter objections. What are the six basic techniques for handling objections?
313) Explain what occurs during the closing stage of the selling process and list the three types of close. Version 1
112
314) Although firms may differ in the specifics of how salespeople are managed, the sales management process has many similarities across firms. Briefly describe the three interrelated functions of the sales management process.
315) Discuss the ethics of salespeople asking their customers for information about such things as the pricing and promotion strategies of the salesperson’s competitors.
316) One of the first sales management decisions a firm must make is whether the company should build its own salesforce or hire independent agents such as manufacturers’ representatives. Abacus Designs sells high-end furniture to retailers and needs to make this decision. Independent agents would receive a 5 percent commission on sales while a company salesforce would receive a 3 percent commission, salaries, and benefits. In addition, with company salespeople, sales administration costs would be incurred for a total fixed cost of $500,000 per year. At what sales level would independent salespeople be less costly?
Version 1
113
317) ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30 billion. At one time, its salesforce was organized by product: generators, boilers, transformers, and so forth. Each salesperson was an expert on the product line he or she sold. Then it adopted a customer organizational structure. Why might ABB have made this change?
318) The sales plan is put into practice through the tasks associated with sales plan implementation. Identify the three major tasks involved in implementing a sales plan.
319) In the context of a salesperson’s position, explain what a job description is. In the answer, specify the six attributes that it purports to explain.
320)
List the four things that research suggests will produce a motivated salesperson.
321)
Describe salesforce automation and why it is used.
Version 1
114
Version 1
115
Answer Key Test name: Chap 21_16e_Kerin 1) B 2) A 3) D 4) C 5) B 6) D 7) E 8) E 9) A 10) E 11) B 12) D 13) B 14) C 15) A 16) D 17) C 18) D 19) B 20) C 21) B 22) D 23) A 24) C 25) A 26) D Version 1
116
27) B 28) C 29) D 30) C 31) B 32) E 33) A 34) A 35) C 36) C 37) D 38) B 39) E 40) D 41) D 42) A 43) E 44) C 45) D 46) A 47) C 48) A 49) C 50) D 51) B 52) C 53) E 54) E 55) B 56) C Version 1
117
57) E 58) B 59) A 60) C 61) A 62) D 63) D 64) A 65) E 66) E 67) D 68) A 69) C 70) D 71) B 72) D 73) B 74) C 75) D 76) A 77) D 78) C 79) D 80) C 81) D 82) B 83) B 84) A 85) E 86) C Version 1
118
87) D 88) E 89) C 90) B 91) A 92) D 93) A 94) B 95) C 96) D 97) A 98) D 99) C 100) B 101) E 102) A 103) B 104) A 105) D 106) C 107) C 108) B 109) C 110) E 111) B 112) E 113) B 114) A 115) C 116) B Version 1
119
117) A 118) C 119) D 120) B 121) E 122) C 123) A 124) B 125) A 126) B 127) C 128) D 129) A 130) B 131) C 132) D 133) B 134) C 135) A 136) B 137) D 138) C 139) E 140) D 141) D 142) B 143) C 144) A 145) B 146) E Version 1
120
147) D 148) A 149) B 150) D 151) C 152) A 153) E 154) E 155) D 156) B 157) A 158) C 159) D 160) E 161) D 162) B 163) E 164) A 165) B 166) C 167) C 168) B 169) D 170) C 171) A 172) B 173) A 174) D 175) E 176) A Version 1
121
177) D 178) C 179) A 180) D 181) E 182) B 183) D 184) B 185) C 186) B 187) D 188) A 189) E 190) B 191) D 192) A 193) D 194) C 195) B 196) A 197) D 198) B 199) E 200) C 201) B 202) D 203) C 204) E 205) A 206) D Version 1
122
207) C 208) D 209) C 210) B 211) C 212) E 213) B 214) C 215) E 216) A 217) C 218) E 219) B 220) C 221) A 222) E 223) D 224) C 225) A 226) E 227) E 228) C 229) D 230) B 231) D 232) B 233) E 234) A 235) D 236) E Version 1
123
237) A 238) C 239) E 240) C 241) A 242) D 243) A 244) E 245) C 246) E 247) D 248) D 249) C 250) E 251) C 252) C 253) D 254) C 255) D 256) B 257) D 258) C 259) E 260) C 261) E 262) D 263) B 264) A 265) D 266) B Version 1
124
267) C 268) A 269) D 270) E 271) B 272) A 273) D 274) C 275) E 276) A 277) C 278) A 279) B 280) E 281) C 282) D 283) C 284) A 285) D 286) B 287) A 288) C 289) E 290) E 291) B 292) B 293) E 294) A 295) C 296) D Version 1
125
297) B 298) C 299) D 300) E
Version 1
126
CHAPTER 22 1)
Which of these is one of four essential parts of General Mills’ growth strategy? A) focusing on nostalgia as a central message B) focusing on purpose-driven brands that appeal to consumers C) slowing down on its product innovation to allow time to perfect concepts D) implementing digital-first in its advertising tactics E) improving its ability to do micro-targeting
2)
The launch of a new cereal typically costs up to $30 million and usually involves A) replacing one of more than 300 competing breakfast cereals already on store shelves. B) a minimum of three attempts before it is successfully launched. C) a tie-in promotion with a major motion picture or toy. D) steps to counteract the promotional efforts of a competitor’s new cereal. E) obtaining FDA approval for its convenience claims.
3)
Recently, General Mills launched all of the following productsexcept which? A) Epic Beef Barbacoa Bars B) :ratio Protein Yogurt C) Ready-to-eat Soft Baked Cookies D) Fiber One Gluten-free Bars E) Cheerios Oat Crunch Almond
4) In a five-year study, researchers conducted in-depth analysis of 160 companies and more than 200 management tools and techniques. What was their principal finding?
Version 1
1
A) Supply chain management was the most critical element in stellar business performance. B) Customer relationship management was more effective than product development. C) The Internet was more effective in terms of long-term sales success than the use of retail outlets or direct marketing tactics such as catalogs. D) Three major management tools—supply chain management, customer relationship management, and the use of an intranet—were equally beneficial in terms of business performance. E) Individual management tools and techniques had no direct relationship to superior business performance in the companies that were studied.
5) Four basic business and management practices are what matter, or “what really works,” to use the phrase of the researchers who studied more than 200 management tools and techniques. Which practice is one of these? A) ethics B) charismatic leadership C) quality D) culture E) sustainability
6) Four basic business and management practices are what matter, or “what really works,” to use the phrase of the researchers who studied more than 200 management tools and techniques. All of these are includedexcept which? A) structure B) culture C) execution D) strategy E) innovation
Version 1
2
7) Which statement about the four basic business and management practices that researchers identified is most accurate? A) Strategy and structure are more important for success than culture and execution. B) Culture and execution are more important for success than strategy and structure. C) In order for a company to be successful, it must use all four strategies. D) The practice itself is less important than flawless execution of the ones the company does use. E) No strategy can work unless every stakeholder buys into it 100 percent.
8) Reflecting on the research study of over 200 management tools and techniques, which company is an example of a firm that excels based on a devising and maintaining a clearly stated, focused strategy? A) Costco B) Sears C) Lululemon D) Smucker’s E) Groupon
9) Reflecting on the research study of over 200 management tools and techniques, which company is an example of a firm that excels in terms of operational execution? A) Costco B) Smucker’s C) Sears D) Groupon E) Toyota
Version 1
3
10) Toyota is generally acknowledged as the best in the world in revolutionizing the design and manufacture of autos. Toyota managers created the doctrine ofkaizen, or A) continuous improvement. B) multilevel input. C) make haste, not waste. D) continuous production. E) continuous communication.
11) Toyota is generally acknowledged as the best in the world in revolutionizing the design and manufacture of autos. Toyota managers created the doctrine of________Blank, or continuous improvement. A) keiretsu B) kaizen C) kanban D) meishi E) zaibatsu
12) Reflecting on the research study of over 200 management tools and techniques, which company is an example of a firm that excels based on a performance-oriented culture? A) Costco B) Google C) Coca-Cola D) Apple E) Toyota
13) Reflecting on the research study of over 200 management tools and techniques, which company is an example of a firm that excels based on its organizational structure?
Version 1
4
A) Costco B) Home Depot C) Lockheed Martin’s Skunk Works D) Coca-Cola E) IBM
14) Lockheed Martin’s Skunk Works is a leader in delivering world-class aircraft. About 50 engineers and designers and 100 expert machinists closely follow this guideline for organizational structure and implementation: Use a small number of good people who A) implement the idea that “it is better to ask forgiveness than permission.” B) know their jobs, as well as the ones around them. C) can talk to anyone in the organization to solve a problem. D) recognize that everyone should have a voice in decision making. E) never offer excuses, only explanations.
15) The mathematical function that relates the expense of marketing effort to the marketing results obtained is referred to as A) marketing ROI. B) market share profitability. C) share point analysis. D) synergy analysis. E) a sales response function.
16) Economists recommend that marketing managers allocate the firm’s marketing resources to the markets and products where
Version 1
5
A) the firm has its greatest sales. B) an SBU is considered a cash cow. C) there is the greatest current market share and the fastest industry growth rate. D) the excess of incremental revenues over incremental costs is greatest. E) total revenue equals total cost.
17)
What is the assumed shape of the graph of the sales response function?
A) U-shaped B) S-shaped C) a straight, downward-sloping line, starting in the upper left and extending to the lower right of the graph D) a straight, upward-sloping line, starting in the lower left and extending to the upper right of the graph E) W-shaped
18) The relationship of annual marketing effort to annual sales revenue is assumed to be a(n)________Blank of the sales response function. A) horizontal straight line, where sales revenues stay the same regardless of the marketing effort B) U-shaped curve, where sales revenues are at a maximum at either end C) upside-down U-shaped curve, where sales revenues are at a maximum in the middle D) S-shaped curve, which shows that an additional marketing effort in the midrange of the curve results in far greater increases of sales revenue than at either end of the curve E) rising straight line, where sales revenue continuously rises as the marketing effort rises
19) The firm’s annual marketing effort, such as advertising, personal selling, sales promotion, direct marketing, and public relations expenses is________Blank in a sales response function graph.
Version 1
6
A) plotted on the vertical (Y) axis B) plotted on the horizontal (S) axis C) plotted on the vertical (Z) axis D) the center point E) plotted on the horizontal (X) axis
20) As the annual marketing effort increases in a sales response function graph, so does the resulting annual sales revenue, which is A) plotted on the vertical (Y) axis. B) plotted on the horizontal (S) axis. C) plotted on the vertical (Z) axis. D) the center point. E) plotted on the horizontal (X) axis.
Version 1
7
21) According to Figure 22-1, an additional annual marketing effort of $1 million is best spent after having already spent how much in marketing effort to date?
A) $1 million B) $2 million C) $3 million D) $5 million E) $6 million
Version 1
8
22) According to Figure 22-1, the result of spending an additional $1 million in annual marketing effort from $3 million to $4 million resulted in increased revenues of
A) $20 million. B) $40 million. C) $50 million. D) $70 million. E) $80 million.
23) You have been told that a company increased its marketing effort from $2 million to $5 million, resulting in increased sales revenue from $12 million to $21 million. Calculate the company’s ratio of incremental sales revenue to incremental marketing effort. A) 3:1 B) 1:3 C) 8:5 D) 5:2 E) 21:12
Version 1
9
24) You have been told that a company increased its marketing effort from $3 million to $5 million, resulting in increased sales revenue from $10 million to $20 million. Calculate the company’s ratio of incremental sales revenue to incremental marketing effort. A) 4:1 B) 1:5 C) 5:1 D) 1:4 E) 10:1
25)
The essence of resource allocation is that
A) company resources are allocated effectively in the strategic marketing process by converting marketing actions into marketing information. B) individual management tools and techniques that a firm chooses to use are less important than flawless execution of the ones it does use. C) sometimes you have to break the rules to spend every dollar in a budget. D) incremental resources should be put where the incremental returns are greatest over the foreseeable future. E) individual management tools and techniques have no direct relationship to superior business performance in the companies.
26)
Share points are
Version 1
10
A) the ratio of sales revenue of the firm to the total sales costs. B) the percentage points of market share used as the common basis of comparison. C) the sales revenue generated by different products within the firm expressed as a percentage. D) a measure of the quantitative value or trend of a marketing activity or result divided by the total marketing effort of the firm. E) the total number of a product sold in one year compared to the cumulative total sold since its introduction, expressed as a percentage.
27) Percentage points of market share used as the common basis of comparison in an analysis to allocate marketing resources effectively for different product lines within the same firm are referred to as A) market shares. B) ratings. C) marketing ROIs. D) S-curve points. E) share points.
28) New Balance has no celebrity endorsers and does minimal advertising, yet the athletic shoe brand has about 10 percent of the sales in the athletic footwear market. The marketing team at New Balance estimates that to increase sales to 11 percent of the market will require an increase of $25 million in marketing effort and will result in an increase of its footwear sales of an additional $45 million. This 1 percent incremental increase from 10 to 11 percent is referred to as A) a rating. B) marginal market share. C) a sales response margin. D) a share point. E) a direct response rate.
Version 1
11
29) When using share points to make marketing resource allocation decisions, marketing managers must estimate which of these? A) total production costs B) number of market segments C) stage of the product in its product life cycle D) the total financial resources available for a sustained marketing effort E) the revenues associated with each point of market share
30)
During the planning phase of the strategic marketing process, the marketing manager will A) design the marketing organization. B) obtain resources. C) develop marketing schedules. D) construct managerial bonus plans. E) set market and product goals.
31) What information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process? A) marketing return on investment B) market-product grids C) trends for industry and competitors D) revenues associated with each point of market share E) marketing mix ideas
32) What information is used in market-product focus and goal setting, the second step of the planning phase of the strategic marketing process?
Version 1
12
A) marketing return on investment B) perceptual maps and positioning statements C) revenues associated with each point of market share D) possible cannibalization effects on other products in the line E) trends for industry and competitors
33) Which of these is used in the development of the marketing program, the third step of the planning phase of the strategic marketing process? A) marketing return on investment B) market-product grids with target segments and product groupings C) trends for industry and competitors D) marketing mix actions E) market potential studies
34) The actions taken in a situation (SWOT) analysis or Step 1 of the planning phase include which of these? A) set market and product goals B) select target markets C) find points of difference D) position the product E) assess your own company
35) The information needed in a situation (SWOT) analysis or Step 1 of the planning phase includes
Version 1
13
A) projections of future sales, expenses, and profits. B) segmentation methods. C) positioning studies. D) market-product grids with target segments and product groupings. E) marketing mix actions.
36) The actions taken during market product focus and goal setting, Step 2 of the planning phase, include A) identifying industry trends. B) researching customers. C) selecting target markets. D) developing the program’s marketing mix. E) developing the budget by estimating revenues, expenses, and profits.
37) The information needed in market product focus and goal setting, Step 2 of the planning phase, includes A) creating market-product grids with targets. B) identifying trends for industry and competitors. C) defining marketing mix actions. D) creating detailed plans to execute the marketing program. E) projecting future sales, expenses, and profits.
38) The actions taken in the development of the marketing program, Step 3 of the planning phase, include
Version 1
14
A) selecting target markets. B) identifying industry trends. C) positioning the product. D) finding points of difference. E) developing the budget by estimating revenues, expenses, and profits.
39) The information needed for the marketing program, Step 3 of the planning phase, includes A) positioning studies. B) market-product grids with targets. C) detailed plans to execute the marketing program. D) projected future sales, expenses, and profits. E) trends for industry and competitors.
40) The actions taken during the implementation phase of the strategic marketing process include A) obtaining resources. B) selecting target markets. C) positioning the product. D) finding points of difference. E) developing the budget by estimating revenues, expenses, and profits.
41)
What information is used in the implementation phase of the strategic marketing process?
Version 1
15
A) marketing return on investment B) a time-based agenda and an action item list C) revenues associated with each point of market share D) trends for industry and competitors E) possible cannibalization effects on other products in the line
42) The information needed for the implementation phase of the strategic marketing process includes A) positioning studies. B) market-product grids with target segments and product groupings. C) organizational charts and marketing research reports. D) detailed plans to execute the marketing program. E) projected future sales, expenses, and profits.
43)
The actions taken during the evaluation phase of the strategic marketing process include A) finding points of difference. B) executing the marketing program. C) comparing results with plans to identify deviations. D) tracking sales and revenues and compare with competitors. E) developing the budget by estimating revenues, expenses, and profits.
44) The information needed for the evaluation phase of the strategic marketing process includes
Version 1
16
A) positioning studies. B) market-product grids with targets. C) detailed plans to execute the marketing program. D) tracking reports to measure results. E) projected future sales, expenses, and profits.
45)
What information is used in the evaluation phase of the strategic marketing process? A) action memos to correct problems and exploit opportunities B) memos assigning responsibilities for actions and deadlines C) revenues associated with each point of market share D) trends for industry and competitors E) possible cannibalization effects on other products in the line
46) During the planning phase of the strategic marketing process, the output report would take the form of a(n) A) action memo. B) operating statement. C) marketing dashboard. D) marketing plan. E) corrective tool checklist.
47) Which output report would be associated with the planning phase of the strategic marketing process?
Version 1
17
A) performance reviews for key personnel B) marketing plans that define goals and marketing mix strategies to achieve them C) action memos that tell who is to do what by when D) corrective action memos, triggered by comparing results with plans, often from the firm’s marketing dashboards and metrics E) sales reports using the firm’s marketing metrics and dashboards
48) Which output report is used in the implementation phase of the strategic marketing process? A) marketing plans that define goals B) projections of sales and expenses C) action memos that tell who is to do what by when D) corrective action memos E) tracking reports
49) Each phase of the strategic marketing process creates its own unique type of output report. Which of these would be associated with the implementation phase? A) performance reviews for key personnel B) corrective action memos, triggered by comparing results with plans, often from the firm’s marketing dashboards and metrics C) sales reports using the firm’s marketing metrics and dashboards D) action memos that tell who is to do what by when E) marketing plans that define goals with the pertinent marketing metrics and the marketing mix strategies to achieve them
50)
Which output report is used in the evaluation phase of the strategic marketing process?
Version 1
18
A) marketing plans that define goals B) action memos that tell who is to do what C) action memos that tell who is to do what by when D) trend reports E) corrective action memos
51) Senior marketing executives who prefer that “a company undertake major strategic initiatives to enhance its innovation and product-development capabilities” use two kinds of metrics:________Blank metrics. A) internal and external B) corporate and stakeholder C) output and input D) sociocultural and competitive E) economic and technological
52) To enhance its innovation and product-development capabilities, firms use two different kinds of metrics, output and input. Which of these is an output metric? A) number of ideas or concepts in the pipeline B) R&D spending as a percentage of sales C) return on assets (ROA) for existing products or services D) revenue growth due to new products E) number of R&D projects
53) To enhance its innovation and product-development capabilities, firms use two different kinds of metrics: output and input. Which of these is an input metric?
Version 1
19
A) number of ideas or concepts in the new-product pipeline B) number of new products or services launched C) return on assets (ROA) for existing products or services D) customer satisfaction with new products or services E) revenue growth due to new products or services
54)
Long-range marketing plans cover marketing investments and programs A) from one quarter to the next. B) from six months to one year. C) for a single year. D) two to five years into the future. E) 5 to 10 years into the future.
55) Marketing plans that cover marketing investments and programs from two to five years into the future are referred to as A) marketing tactics. B) marketing strategies. C) generic marketing strategies. D) short-term marketing plans. E) long-range marketing plans.
56) ________Blank consider what products and services to keep, add, and delete in the future using a portfolio analysis, present new marketing initiatives, and address marketing organization topics.
Version 1
20
A) Marketing tactics B) Marketing strategies C) Generic marketing strategies D) Short-term marketing plans E) Long-range marketing plans
57) Long-range marketing plans originate at the CMO level in companies, are directed at other senior-level executives, and give direction and a context for a(n) A) generic business strategy. B) annual marketing plan. C) long-range marketing plan. D) marketing action program. E) BCG model.
58) Annual________Blank are documents that deal with the marketing goals and strategies for a product, product line, or entire firm for a single year. A) production estimates B) sales forecasts C) budget projections D) marketing plans E) tactical forecasts
59) ________Blank place a heavy emphasis on segmentation, targeting, and positioning, elements of the marketing mix, and revenue and expense projections.
Version 1
21
A) Generic business strategies B) Annual marketing plans C) Long-range marketing plans D) Marketing action programs E) BCG models
60) Regardless of the product or industry involved, the strategy that a firm adopts to achieve a competitive advantage is referred to as a(n) A) generic business strategy. B) annual business plan. C) long-range marketing plan. D) marketing action program. E) synergy analysis framework.
61)
A generic business strategy is a strategy that
A) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. B) can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage. C) describes an organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals. D) states the organization’s function in society, often identifying its customers, markets, products, and technologies. E) helps a firm search for growth opportunities from among current and new markets as well as current and new products.
62) According to a generic business strategy framework, there are two fundamental alternatives a firm can use to seek a competitive advantage. One of these is to
Version 1
22
A) become the high-cost producer within the markets in which it competes. B) adopt a “me too” strategy to achieve competitive parity. C) become the low-cost producer within the markets in which it competes. D) state its function in society to differentiate itself from competitors. E) differentiate itself from competitors by developing similar marketing programs.
63) The four generic business strategies involve combinations of________Blank and an emphasis on costs versus product differentiation. A) organizational structure B) degree of geographical distribution C) investment in research and development D) relative number of products in a product line E) competitive scope or the breadth of the target markets
64) The four generic business strategies involve combinations of competitive scope or the breadth of the target markets and A) organizational structure. B) degree of geographical distribution. C) investment in research and development. D) an emphasis on either costs or product differentiation. E) relative number of products in a product line.
65)
Which of these is one of the four generic business strategies?
Version 1
23
A) exclusivity B) quality focus C) differentiation D) geographic span E) service leadership
66)
The four generic business strategies include all of theseexcept which? A) cost leadership B) quality focus C) differentiation focus D) cost focus E) differentiation
67) In the generic business strategies shown in Figure 22-3, Box A refers to a ________Blank strategy.
A) cost leadership B) quality focus C) differentiation focus D) cost focus E) differentiation
Version 1
24
68) In the generic business strategies shown in Figure 22-3, Box B refers to a ________Blank strategy.
A) cost leadership B) quality focus C) differentiation focus D) cost focus E) differentiation
69) In the generic business strategies shown in Figure 22-3, Box C refers to a ________Blank strategy.
Version 1
25
A) cost leadership B) quality focus C) differentiation focus D) cost focus E) differentiation
70) In the generic business strategies shown in Figure 22-3, Box D refers to a ________Blank strategy.
A) cost leadership B) quality focus C) differentiation focus D) cost focus E) differentiation
Version 1
26
71) In the generic business strategies shown in Figure 22-3, which box represents a costleadership strategy?
A) Box A B) Box B C) Box C D) Box D E) This is not one of the generic business strategies.
72) In the generic business strategies shown in Figure 22-3, which box represents a differentiation strategy?
A) Box A B) Box B C) Box C D) Box D E) This is not one of the generic business strategies.
Version 1
27
73) In the generic business strategies shown in Figure 22-3, which box represents a cost focus strategy?
A) Box A B) Box B C) Box C D) Box D E) This is not one of the generic business strategies.
74) In the generic business strategies shown in Figure 22-3, which box represents a differentiation focus strategy?
Version 1
28
A) Box A B) Box B C) Box C D) Box D E) This is not one of the generic business strategies.
75)
A cost leadership strategy refers to one of the generic business strategies that
A) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. B) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. C) requires products to have significant points of difference to target one or only a few market segments. D) requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. E) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
76) According to the four generic business strategies framework, a________Blank strategy focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. A) differentiation focus B) cost focus C) cost leadership D) differentiation E) supply focus
Version 1
29
77) In the early 1900s, Henry Ford revolutionized the automobile industry by developing production lines and mass-producing the Ford Model T automobile. By heavily reducing production costs, Ford made the Model T affordable for the average American family. What generic business strategy did Ford use to gain a competitive advantage in the automobile market? A) a cost-leadership strategy B) a differentiation strategy C) a cost focus strategy D) a differentiation focus strategy E) a limited production strategy
78) One of the generic business strategies that requires a product to have significant points of difference to charge a higher price while targeting a broad array of market segments is referred to as a A) differentiation focus strategy. B) cost focus strategy. C) cost-leadership strategy. D) differentiation strategy. E) supply focus strategy.
79)
A differentiation strategy refers to one of the generic business strategies that
Version 1
30
A) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. B) requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. C) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. D) requires products to have significant points of difference to target one or only a few market segments. E) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
80) Delphi Automobile Systems manufactures and sells satellite communications systems for automobiles that connect you and your car to 24-hour-a-day emergency service, direct you to a destination, and enable you to order a movie while on the road. Delphi Automobile Systems most likely uses A) a cost-leadership strategy. B) a cost focus strategy. C) a differentiation focus strategy. D) an innovation strategy. E) a differentiation strategy.
81) Many people are concerned about eating healthy, but many of these same people still grab lunch at fast-food restaurants because the restaurants are convenient and they like cheeseburgers. Burger King has created a veggie burger that “tastes like the real thing without all the fat.” Burger King is most likely using a________Blank to attract this large market that encompasses many different segments.
Version 1
31
A) cost-leadership strategy B) cost focus strategy C) differentiation strategy D) differentiation focus strategy E) service focus strategy
82) One of the generic business strategies that involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments is referred to as a________Blank strategy. A) cost focus B) cost-leadership focus C) differentiation focus D) differentiation E) profit enhancement
83)
A cost focus strategy refers to one of the generic business strategies that
A) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. B) requires products to have significant points of difference to target one or only a few market segments. C) requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. D) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments. E) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
Version 1
32
84) Office Max provides low product prices for products typically classified as office supplies. In terms of the generic business strategy, Office Max is most likely using a________Blank strategy. A) differentiation focus B) cost focus C) differentiation D) revenue leadership E) profit enhancement
85) One of the four generic business strategies that requires products to have significant points of difference to target one or only a few market segments is referred to as a________Blank strategy. A) cost focus B) differentiation C) cost leadership D) profit enhancement E) differentiation focus
86)
A differentiation focus strategy refers to one of the generic business strategies that
A) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. B) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. C) requires products to have significant points of difference to target one or only a few market segments. D) requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. E) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
Version 1
33
87) Hard Candy is a cosmetics company that markets the Palm Palette—all the makeup a “girl-on-the-go” needs without a cumbersome makeup bag. It comes in three shades—glam, funky, and girly. Hard Candy targets women who are 20-somethings. Which one of the generic business strategies is Hard Candy most likely using? A) differentiation focus B) cost focus C) differentiation D) cost leadership E) profit enhancement
88) Hyundai Motor America (HMA) became the first automaker to offer consumers an Internet parts ordering system. The system was targeted only to current Hyundai owners and gave Hyundai the ability to collect a vast amount of customer data about people who buy its cars. Which of the generic business strategies did Hyundai most likely use when it launched its Internet parts website? A) cost leadership B) differentiation focus C) differentiation D) cost focus E) marketing focus
89) Volkswagen achieved spectacular success in the late 1990s by targeting the “nostalgia” segment, 35- to 54-year-old baby boomers, with its technology-laden New Beetle. Which generic business strategy did Volkswagen most likely use to launch the New Beetle?
Version 1
34
A) differentiation focus B) cost leadership C) differentiation D) cost focus E) marketing focus
90) A strategy that emphasizes the simultaneous pursuit of product or marketing program differentiation and lower cost in newly configured industriesand markets is referred to as a________Blank strategy. A) differentiation B) blue ocean C) SWOT analysis D) sales response E) competitive grid
91)
A blue ocean strategy refers to
A) identifying a company’s potential strengths, weaknesses, opportunities, and threats. B) relating the expense of marketing effort to the marketing results obtained. C) using percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm. D) using a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. E) emphasizing the simultaneous pursuit of product or marketing program differentiation and lower cost in newly configured industries and markets.
92)
A blue ocean strategy emphasizes the simultaneous pursuit of
Version 1
35
A) the needs of the manufacturer and the needs of the consumer. B) the desire for profit and a responsibility to society as a whole. C) minimal expenses in marketing effort and maximum marketing results obtained. D) a firm’s market segments and relevant product groupings. E) product or marketing program differentiation and lower cost.
93) In using a blue ocean strategy, companies are challenged to reimagine the marketplace in several ways: looking across traditional industry or market boundaries, creating new buyer and user experiences for the purpose of fashioning new industries and markets, and by A) using the generic business strategy framework. B) combining complementary products. C) performing a SWOT analysis. D) seeking a new competitive advantage. E) conducting a share point analysis.
94)
The Four Actions Grid used in forming a blue ocean strategy includes which of these? A) innovations to copy B) competitive intelligence to acquire C) products to develop D) factors to raise E) products to introduce
95) All of these are among the actions suggested by the Four Actions Grid used in forming a blue ocean strategyexcept which?
Version 1
36
A) factors to be raised B) factors to be eliminated C) factors to be concentrated D) factors to be reduced E) factors to be created
96) A________Blank strategy focuses on increasing differentiation by creating and raising industry factors that are improved relative to the existing marketplace. At the same time, it focuses on decreasing cost by eliminating and reducing prevailing industry factors that are no longer necessary or can be provided below current standards. A) differentiation B) blue ocean C) cost focus D) sales response E) competitive grid
97) In its introduction of the iPhone, Apple increased the number of applications available to users through its App Store which in turn allowed users to customize their smartphones. It also removed a physical (button) keyboard found on predecessor smartphones with a multi-touch interface allowing for easier use. These are examples of which two aspects of the blue ocean strategy? A) differentiation and cost focus B) market and product specialization C) raising and eliminating factors D) selective and generic specialization E) full coverage and selective deletion
Version 1
37
98) Ideally, in effective marketing planning, goals should be________Blank in terms of what is to be accomplished and by when. A) consistent and straightforward B) general and somewhat flexible C) easily adaptive to changes in the environment D) very specific and unwavering E) quantified and measurable
99) The more a marketing plan is based on________Blank, the less uncertainty and fewer risks are associated with executing it. A) opinions B) intuition C) facts and valid assumptions D) past historical data E) alternative contingencies
100) A(n)________Blank strategy formulation process for marketing planning will lead to more ideas, enhance engagement, and increase the chances for successful implementation. A) open B) contingency C) external D) dynamic E) proactive
101) Which statement best reflects the guideline of using a base of facts and valid assumptions for marketing plans?
Version 1
38
A) The firm insists on having good marketing research. B) To motivate people, the firm sets achievable goals. C) The firm ensures that people at all levels in the firm understand what, when, and how they are to accomplish their tasks. D) The firm’s marketing plan has all the key marketing mix factors and are supported by resources. E) The firm’s marketing plan enables results to be compared with planned targets, using precise marketing metrics.
102) Which statement best reflects the guideline for having complete and feasible marketing plans? A) The firm insists on having good marketing research. B) To motivate people, the firm sets achievable goals. C) The firm ensures that people at all levels in the firm understand what, when, and how they are to accomplish their tasks. D) The firm’s marketing plan has all the key marketing mix factors and is supported by resources. E) The firm’s marketing plan enables results to be compared with planned targets, using precise marketing metrics.
103) Which statement best reflects the guideline for making marketing plans controllable and flexible?
Version 1
39
A) The firm ensures that people at all levels in the firm understand what, when, and how they are to accomplish their tasks. B) The firm’s marketing plan has all the key marketing mix factors and is supported by resources. C) The firm’s marketing plan enables results to be compared with planned targets using precise marketing metrics but the plan can be altered based on results. D) The firm insists on ownership of the marketing plan by team members and stakeholders. E) The firms ensures that the right person to implement plans is heavily involved in making the plans.
104) All of these are key problems that emerge in a firm’s strategic marketing processexcept which? A) Line operating managers often feel no sense of ownership in implementing the plans. B) Extensive formal plans are too complex to implement. C) Not enough time and effort is spent on data collection; therefore, the plans written are too vague to implement. D) Plans are based on very poor assumptions about environmental forces. E) Planners and their plans may have lost sight of their customers’ needs.
105)
Key problems that emerge in a firm’s strategic marketing process include that
A) there is poor communication between the firm and its stakeholders. B) there is a lack of leadership. C) although management says they are behind the plans, they do not allocate resources to the degree necessary for success. D) planners and their plans may have lost sight of their customers’ needs. E) plans can be thwarted by disgruntled employees, other departments, or competitors.
Version 1
40
106)
Which statement regarding marketing failures is most accurate?
A) Marketing failures are due to a lack of a program champion who is willing to make decisions and act on them. B) Marketing failures are due to a lack of financial support. C) Marketing failures are due to a lack of originality. D) Marketing failures are due to poorly communicated plans. E) Marketing failures are due to a poor plan and strategy, poor implementation, or both.
107) The reformulation of the original less sweet, more bitter Coca-Cola (now Coca-Cola Classic) into a new sweeter one (eventually called New Coke) was one of the biggest decisions in the firm’s history. Coca-Cola was responding to Pepsi’s gain in market share with its sweeter formulation and its Pepsi Challenge taste tests and commercials. New Coke replaced “old Coke” on supermarket shelves. Loyal Coke customers were incensed that “old Coke” was discontinued. They loved the taste and brand identity of “old Coke” and rebelled against New Coke. TV and print ads designed to persuade Coke and Pepsi drinkers to switch to New Coke were ineffective. After a short time, Coca-Cola reintroduced old Coke as Coca-Cola Classic and withdrew New Coke from the market. The launch of New Coke is an example of A) good planning and good implementation. B) good planning and poor implementation. C) poor planning and good implementation. D) poor planning and poor implementation. E) poor evaluation.
Version 1
41
108) As the marketing manager for Acme Products Inc., you just became the new program leader for Baubles, a product Acme introduced last year. Initial sales far exceeded expectations. In response, the previous program leader decided to reduce the profit margins for channel members to more quickly recover the high costs incurred in the development of the Baubles product and its marketing program. Unfortunately, sales of Acme Baubles declined by 5 percent while its market share declined by 7 percent as new competitors entered the market. After conducting a customer survey, you concluded that customers were generally satisfied with Acme’s Baubles. However, Baubles were not as readily accessible as they were the previous year. Furthermore, after conducting a survey among the leading wholesalers and retailers of Acme Baubles, you discovered they were not pleased with the reduced margins. Moreover, because Acme’s principal competitors offered them greater margins, they gave their products better service and shelf space than Acme’s. This is an example of A) good planning and good implementation. B) good planning and poor implementation. C) poor planning and good implementation. D) poor planning and poor implementation. E) poor evaluation.
109) Today, the implementation phase of the strategic marketing process often involves expanding ownership of the plan from the planners to________Blank that are responsible for implementing the plans. A) line managers B) outside consultants C) senior management D) the chief marketing officers E) project teams
110) All of these are ways a marketing manager can improve the implementation of a marketing programexcept which?
Version 1
42
A) reward successful implementation B) communicate goals and the means to achieve them C) surface problems with open communications D) avoid paralysis by analysis E) punish failures in implementation
111)
Successful implementation of a marketing plan often is bolstered by which of these? A) having a responsible program champion that is willing to act B) isolating those that oppose aspects of the plan C) preferring management involvement in daily tasks D) using documentation to point out failures E) avoiding measurements of activities until their conclusion
112) Management experts warn against the tendency to excessively analyze a problem instead of taking action. This problem is referred to as A) second-guessing. B) paralysis by analysis. C) better to ask for forgiveness than permission. D) stay with the pack. E) letting sleeping dogs lie.
113) Kelly Johnson of Lockheed Martin’s Skunk Works stressed this basic implementation tenet:
Version 1
43
A) Implement a “check the research” approach. B) Take a “go and see” approach. C) Have a “bias for action.” D) “Avoid paralysis by analysis.” E) “Better to ask forgiveness than permission.”
114) All of these are basic tenets or axioms voiced by Kelly Johnson of Lockheed Martin’s Skunk Worksexcept which? A) “Failure just leads you to the next great thing.” B) “When trouble develops, surface the problem immediately.” C) “Avoid paralysis by analysis.” D) “Get help—don’t keep the problem to yourself.” E) “Make decisions promptly.”
115) One way to improve implementation is to communicate goals and the means of achieving them. At Toyota, its design teams stress________Blank—“go and see”—a message about both a goal and a means of achieving it. A) keiretsu B) genchi genbutsu C) kaizen D) zaibatsu E) meishi
116) A person who is willing and able to “cut the red tape” to move a program forward is referred to as a
Version 1
44
A) channel captain. B) marketing mediator. C) program director. D) program champion. E) program facilitator.
117)
A program champion is
A) a person who is willing and able to “cut the red tape” to move a program forward. B) the person within an organization who is assigned the responsibility of taking a program from conception to deletion. C) a person in an organization who is the “product figurehead” for a new-product development cross-functional team. D) a sports figure or celebrity, who serves as a company spokesperson for a new product. E) a single product within the product line that carries the other products in the line “on its back.”
118) U.S. Navy Admiral Grace Murray Hopper gave famous advice that a program champion should follow when cutting through an organization’s red tape: A) Implement a do it, fix it, try it” approach. B) Take a “go and see” approach. C) “Avoid paralysis by analysis.” D) Have a “bias for action.” E) “Better to ask forgiveness than permission.”
119) Edwin H. Land, former CEO of Polaroid, took personal responsibility for technological innovation at Polaroid. On the other hand, Lewis Platt, CEO of Hewlett-Packard, believed senior management’s role was to create an environment that encourages all managers to take risks and create new growth opportunities. Which statement describes the actions of these men? Version 1
45
A) Both Land and Platt were program champions. B) Platt was a program champion and Land was not. C) Land was a program champion and Platt was not. D) Neither Platt nor Land was a program champion. E) Land believed in encouraging others to act as program champions and Platt did not.
120)
The most senior executive responsible for a firm’s marketing activities is called the A) brand manager. B) product manager. C) chief marketing officer (CMO). D) director of sales. E) marketing director.
121)
Line positions are
A) managers who have the authority and responsibility to issue orders to people who report to them. B) people who have the authority and responsibility to advise people in staff positions but cannot issue direct orders to them. C) the senior executives responsible for a firm’s marketing strategies and activities. D) members of the board of directors who are responsible for implementing the firm’s marketing strategies and tactics. E) middle managers with the responsibility of assuring that tasks are completed on time but who do not actually have the authority to issue orders.
122) Managers who have the authority and responsibility to issue orders to people who report to them are referred to as
Version 1
46
A) executive marketing officers. B) staff positions. C) stakeholders. D) line positions. E) program champions.
123) People in________Blank positions have the authority and responsibility to issue orders to people who report to them. A) staff B) executive marketing officer C) line D) stakeholder E) cross-functional team
124) Those in staff positions have the authority and responsibility to advise people in line positions A) and can recommend salary and benefit adjustments for them. B) and serve the board of directors. C) and must clear all such communication with the human resources department. D) but cannot serve on team projects with them. E) but cannot issue direct orders to them.
125) People who have the authority and responsibility to advise people in line positions but cannot issue direct orders to them hold
Version 1
47
A) staff positions. B) line positions. C) positions on the board of directors. D) stakeholder positions. E) program champion positions.
126) Organizational groupings in which a unit is responsible for specific product offerings are referred to as A) functional groupings. B) geographical groupings. C) reseller-based groupings. D) product line groupings. E) market-based groupings.
127) A company that uses an organizational structure based on “Dinner Products” or “Baked Goods” uses A) functional groupings. B) product line groupings. C) reseller groupings. D) geographical groupings. E) market-based groupings.
128) A company that uses an organizational structure based on its snowboards, skiing equipment, and ice skates would most likely be using a________Blank grouping.
Version 1
48
A) functional B) reseller C) product line D) geographical E) market-based
129) A company that uses an organizational structure based on________Blank uses functional groupings. A) specific product types or product offerings B) a particular method of distribution C) a specific type of customer D) areas of geographic location E) different departments or business activities within the firm
130) A company that uses an organizational structure by marketing department, finance department, human resource department, etc., is most likely using________Blank groupings. A) functional B) reseller C) task-based D) product line E) market-based
131) Organizational groupings that represent the different departments or business activities within a firm are referred to as
Version 1
49
A) reseller groupings. B) functional groupings. C) geographical groupings. D) product line groupings. E) market-based groupings.
132)
Functional groupings are organizational groupings A) that group specific customer segments. B) in which sales territories are subdivided according to geographic location. C) that represent the different departments or business activities within a firm. D) in which a unit is responsible for specific product offerings. E) that combine both market-based groupings with product groupings.
133)
Geographical groupings are organizational groupings A) that group specific customer segments. B) in which sales territories are subdivided according to geographic location. C) that represent the different departments or business activities within a firm. D) in which a unit is responsible for specific product offerings. E) that combine both market-based groupings with product groupings.
134) Organizational groupings in which sales territories are subdivided according to location are referred to as
Version 1
50
A) functional groupings. B) reseller groupings. C) geographical groupings. D) product line groupings. E) market-based groupings.
135)
Organizational groupings based on specific customer segments are referred to as A) functional groupings. B) reseller groupings. C) geographical groupings. D) product line groupings. E) market-based groupings.
136)
Market-based groupings are organizational groupings A) that group specific customer segments. B) in which sales territories are subdivided according to geographic location. C) that represent the different departments or business activities within a firm. D) in which a unit is responsible for specific product offerings. E) that combine both functional groupings with product groupings.
137)
A matrix organization A) combines a product line structure with a geographical structure. B) combines a geographical structure with a market-based structure. C) combines a market-based structure with product groupings. D) turns a horizontal organizational structure into a vertical one. E) groups products according to the distribution system that is used.
Version 1
51
138) Ingram Micro is the biggest computer wholesaler in the world. It has two divisions. One provides supplies for companies that manufacture computer products, such as IBM and Microsoft. To them it sells motherboards, monitors, etc. The other has been developed to serve the needs of the resellers and retailers that sell computers to businesses and individual customers. To them, it sells user-ready computers. Ingram Micro most likely would use which type of organizational structure for marketing? A) product line grouping B) geographical grouping C) functional grouping D) matrix organization E) market-based grouping
139) Procter & Gamble uses category managers to organize by “global business units” such as baby care and beauty care. Cutting across country boundaries, these global business units implement standardized worldwide pricing, marketing, and distribution strategies. The baby care category manager would have A) completely different duties from the brand manager. B) profit and loss responsibility for all baby care products in the line. C) to use persuasion as opposed to direct authority to get any goals achieved. D) no authority over functions, except marketing, that affect baby care products. E) no authority on U.S. baby care product sales.
140) The essence of marketing evaluation is comparing results with planned goals to identify deviations and
Version 1
52
A) taking corrective actions. B) devising a new budget. C) revising the goals that fell short of expectations. D) investigating the causes of deviations. E) updating the marketing plan.
141)
The strategic marketing process involves three phases: planning, implementation, and A) review. B) execution. C) evaluation. D) goal revision. E) correction.
142) Amy Smith has just completed measuring the results of her firm’s product performance. Her next step will be to A) do a profitability analysis. B) take necessary corrective actions. C) bring these to the marketing auditor. D) proceed regardless of deviations from original plans. E) compare the results against the goals specified in the marketing plan.
143) Identifying the results that deviate from plans to diagnose their causes and take new actions is referred to as
Version 1
53
A) management by exception. B) qualitative analysis. C) SWOT analysis. D) market-product grid framework assessment. E) synergy analysis.
144) The marketing manager looks for two kinds of deviations in the evaluation phase of the strategic marketing process, each triggering a different kind of action: (1)________Blank and (2) actual results fall short of goals. A) deviations that result from major shifts in customer needs B) actual results exceed goals C) there are no deviations but there should be D) deviations that result from executive mandates E) deviations that are blamed on insufficient marketing support (personnel or funding)
145) The application of modern measurement technologies to understand, quantify, and optimize marketing spending is referred to as A) situation analysis. B) strategic marketing analysis. C) marketing ROA (return on assets). D) marketing ROI (return on investment). E) marketing response evaluation.
146)
Marketing ROI (return on investment) refers to the
Version 1
54
A) use of marketing dollars to lower production costs. B) application of modern measurement technologies to understand, quantify, and optimize marketing spending. C) use of research and development (R&D) to uncover features that will improve marketing returns (revenues). D) allocation of funds based on a percentage of the total marketing budget determined by assessing the anticipated revenue return for a given marketing action. E) allocation of funds based upon the minimum expenditure possible to create the maximum results in terms of total sales.
147) Marketing ROI (return on investment) uses modern measurement technologies to determine the results of A) marketing spending. B) manufacturing and distribution procedures. C) market-product sales. D) organizational structure. E) personal selling.
148)
Marketing ROI (return on investment) is an extension of A) marginal analysis. B) marketing audits. C) ROI in finance. D) Six Sigma. E) the strategic marketing process.
149)
Two commonly used methods to improve marketing ROI (return on investment) are
Version 1
55
A) sales analysis and cost analysis. B) marketing research and marketing audits. C) social audits and marketing audits. D) marketing metrics and marketing dashboards. E) internal audits and external audits.
150) Resource allocation decisions at Ford Motor Company resulted in $22 billion being assigned to the development of battery-powered cars, which suggests that Ford is pursuing which generic business strategy? A) cost leadership B) differentiation C) innovation focus D) cost focus E) differentiation focus
151)
Which of these is considered a threat in Ford Motor Company’s SWOT analysis? A) industry-leading R&D capabilities B) increased regulation and higher emission controls C) reliance on North America for more than 40% of sales D) expensive and reputation-damaging recalls E) slow reaction to alternative fuel vehicles
152)
Ford’s Mach-E is an electric version of which vehicle?
Version 1
56
A) F-150 B) Escape C) Focus D) Explorer E) Mustang
153) In a five-year study, researchers conducted in-depth analysis of 160 companies and more than 200 management tools and techniques, such as customer relationship management and use of an intranet. What were their findings? That is, according to the researchers, how would a company exploit its competitive advantage to achieve superior business performance?
154)
What is a sales response function?
155) List the three steps of the planning phase of the strategic marketing process. Briefly describe actions that make up each of the three steps. What information is collected in each step?
156)
List the three phases of the strategic marketing process and the output report for each.
Version 1
57
157) What are the two types of metrics used by senior marketing executives who prefer that “a company undertake major strategic initiatives to enhance its innovation and productdevelopment capabilities”?
158)
List and explain two types of marketing plans.
159)
Describe the four generic business strategies and which variables determine them.
160) Explain what blue ocean strategy is and describe the four actions that may be recommended for industry factors.
161)
List the seven guidelines for developing effective plans and planning.
Version 1
58
162) List four problems that occur in the planning phase of a firm’s strategic marketing process.
163) When a marketing plan fails, what should a marketer do in terms of looking for the source of the problem?
164)
List the five guidelines for improving implementation of marketing programs.
165) Management experts call for a “bias for action.” How can this attitude be important in marketing program implementation?
166)
What three things have become critical to the role of CMO?
Version 1
59
167)
What is the difference between line and staff positions in a marketing organization?
168)
Explain the steps in the evaluation phase of the strategic marketing process.
169) How is management by exception used in the evaluation phase of the strategic marketing process?
170)
Define marketing ROI (return on investment).
Version 1
60
Answer Key Test name: Chap 22_16e_Kerin 1) B 2) A 3) D 4) E 5) D 6) E 7) D 8) A 9) E 10) A 11) B 12) B 13) C 14) C 15) E 16) D 17) B 18) D 19) E 20) A 21) C 22) A 23) A 24) C 25) D 26) B Version 1
61
27) E 28) D 29) E 30) E 31) C 32) B 33) D 34) E 35) A 36) C 37) A 38) E 39) C 40) A 41) B 42) C 43) C 44) D 45) A 46) D 47) B 48) C 49) D 50) E 51) C 52) D 53) A 54) D 55) E 56) E Version 1
62
57) B 58) D 59) B 60) A 61) B 62) C 63) E 64) D 65) C 66) B 67) C 68) D 69) E 70) A 71) D 72) C 73) B 74) A 75) B 76) C 77) A 78) D 79) B 80) E 81) C 82) A 83) D 84) B 85) E 86) C Version 1
63
87) A 88) B 89) A 90) B 91) E 92) E 93) B 94) D 95) C 96) B 97) C 98) E 99) C 100) A 101) A 102) D 103) C 104) C 105) D 106) E 107) D 108) B 109) A 110) E 111) A 112) B 113) D 114) A 115) B 116) D Version 1
64
117) A 118) E 119) C 120) C 121) A 122) D 123) C 124) E 125) A 126) D 127) B 128) C 129) E 130) A 131) B 132) C 133) B 134) C 135) E 136) A 137) C 138) D 139) B 140) A 141) C 142) E 143) A 144) B 145) D 146) B Version 1
65
147) A 148) C 149) D 150) E 151) B 152) E
Version 1
66