MARK 3321 Final Review 2020

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MARK 3321 Final Review 2020 Ch. 1 9. Which of the following opinions is a critic of the sales-orientation philosophy most likely to hold? a) Reducing prices is the most effective technique that ... helps increase product sales. b) Customers do not buy products unless the products are adequately promoted. c) Business firms should give maximum emphasis to advertising strategies. d) Business firms need to have a good understanding of the needs of the marketplace. 10. A firm that extensively uses relationship-marketing strategies is most likely to: a) focus on the internal rather than the external business environment. b) rely on aggressive sales strategies. c) be highly centralized. d) encourage teamwork among employees. 11. Which of the following statements is true about on-demand marketing? a) It requires firms to focus on the internal rather than the external business environment. b) It gives maximum emphasis to aggressive personal selling strategies. c) It is aimed at enhancing customer relationships. d) It is used by sales-oriented firms. 12. Which of the following is a difference between a market-oriented firm and a sales-oriented firm? a) Unlike a market-oriented firm, a sales-oriented firm puts customers at the center of its business. b) Unlike a market-oriented firm, a sales-oriented firm uses relationship-marketing strategies. c) Unlike a market-oriented firm, a sales-oriented firm gives little emphasis to promotion activities. d) Unlike a market-oriented firm, a sales-oriented firm targets its products at the average customer. 13. Which of these statements is true about customer relationship management? a) It involves linking all processes of the company from its customers through its suppliers. b) It tries to convince potential customers to buy, even if the seller knows that the customer and product are mismatched. c) It is used more by sales-oriented firms than market-oriented firms. d) It is most extensively used by production-oriented firms. 14. A sales-oriented firm places minimal emphasis on: a) promotional strategies. b) building long-term customer relationships. c) pricing strategies. d) personal selling and direct selling activities. 15. Relationship-management strategies depend on: a) centralization. b) employee empowerment. c) deregulation. d) greenwashing techniques. 16. Which of the following statements is true of customer relationship management? a) It involves targeting the average customer or everybody. b) It involves establishing and tracking customer interactions with the company. c) It considers all the customers of the firm as one large group that should be targeted with a single promotional strategy. d) It is used by sales-oriented firms to convince customers to buy their products. 17. Which of the following is a drawback of the production-orientation philosophy? a) It ignores the importance of assessing a firm’s internal capabilities. b) It overlooks the importance of market research. c) It places little emphasis on the assessment of manufacturing plants and facilities. d) It gives importance to the sales function over other functions. 18. A market-oriented firm: a) defines its mission in terms of the benefits its customers seek. b) targets the average customer. c) is highly centralized. d) defines its business in terms of the goods and services it produces. 19. Which of the following strategies is most closely associated with a societal marketing orientation? a) Using greenwashing techniques b) Fostering opportunism c) Using clean energy sources d) Increasing overhead production costs 20. Which of the following strategies illustrates a market orientation? a) Targeting the average consumer b) Implementing centralization c) Increasing overhead production costs d) Creating customer value 21. Which of the following questions which companies consider is best aligned with the production orientation philosophy? a) What are the product preferences of our customers? b) How can we sell our products more aggressively? c) What can our engineers design? d) How can we gather more information about customer needs? 22. Companies that rely on the marketing concept and have implemented a market orientation strategy recognize that: a) price is the most important variable for customers. b) products should be targeted at everybody or the average customer. c) customer wants can be satisfied by integrating activities of the firm. d) good promotion and advertising strategies can save a bad product. 23. A sales-oriented firm: a) carefully identifies market segments. b) extensively uses relationship-marketing strategies. c) extensively uses personal selling and advertising. d) increases sales by creating customer value and satisfaction. 24. Filmin Inc. has decided to increase the production of its printers. Filmin does not conduct market research before making its marketing decisions. To ensure profits for the company, Filmin has instructed its marketing force to aggressively advertise and promote its printers. The CEO of Filmin believes that the market will absorb more products if powerful promotion strategies are used. After increasing production of printers, the company plans to reduce the prices of the printers to encourage customers to buy them. Filmin appears to have a__________orientation. a) task b) production c) sales d) customer Ch. 2 29. Gemini Inc. has prepared a market plan for its air conditioners. The managers at Gemini have outlined several activities for their subordinates based on a marketing plan. The employees are required to finish these activities within specific time frames. The managers have also allocated a budget for each activity. In the context of marketing planning, which of the following concepts is illustrated in the scenario? a) Divestment b) Implementation c) Diversification d) Vertical integration 30. NutriPro has many business divisions. One of its business divisions has a large customer base for its breakfast cereal in Oriel. NutriPro's other business division sells cookies in Lanslot. NutriPro has now introduced its cookies in Oriel. To ensure good sales, the company is also offering discounts. Which of the following strategies is illustrated in this scenario? a) Restraint of trade b) Self-dealing c) Market penetration d) Divestment 31. Which of the following questions considered by markets is closely associated with promotion? a) How can we use social media to increase our products sales? b) Should we increase the prices of our products? c) What should the packaging of our products look like? d) How can we improve our product quality? 32. In the context of SWOT analysis, marketers can identify strengths and weaknesses by focusing on: a) employee capabilities. b) government policies. c) quality of products produced by competitors. d) foreign competitors. 33. The price component of a marketing mix is: a) a competitive weapon for companies. b) decided after the promotion strategies are finalized. c) the starting point of the marketing mix. d) the least flexible element of the marketing mix. 34. In the context of marketing planning, implementation requires: a) micromanagement strategies. b) anti-competitive strategies. c) centralization of the firm. d) delegating authority to employees. 35. Which of the following statements is true about the niche strategy? a) Only large companies can implement a niche strategy. b) Companies that adopt a niche strategy have only a small number of customers. c) Only the companies that do not have competitors can adopt a niche strategy. d) Companies that adopt a niche strategy can only gain a price advantage over competitors. 36. In the context of marketing planning, implementation involves: a) allocating resources. b) identifying market segments. c) defining the business mission. d) assessing internal capabilities. 37. An effective marketing objective: a) is qualitative rather than quantitative. b) is compared to a benchmark. c) is written independently of the mission statement. d) is unattainable. 38. Which of the following questions considered by marketers is best aligned with distribution strategies? a) Which market segment should we target? b) How do we convince customers to buy our products? c) What products should we manufacture? d) Where do customers like to shop? 39. Which of the following is closely associated with the diversification strategy? a) Entering new markets with little competition b) Increasing overhead production costs c) Decreasing the prices of existing products d) Selling modified products to the same customers 40. Which of the following statements is true about strategic business units (SBUs)? a) They do not have competitors of their own. b) They do not plan collaboratively with other SBUs. c) They do not have specific target markets. d) They do not perform manufacturing and marketing functions. 41. Strategic planning: a) should be an annual exercise. b) should not be influenced by managerial intuition. c) should be done independently by company shareholders. d) should be based on creativity. 42. The distribution strategy in the marketing mix is concerned with: a) transporting raw materials or finished products. b) educating customers about product benefits. c) providing after-purchase services to customers. d) public relations activities. 43. Mitchell's is a popular brand of women's clothing. During market research, the company observed that a large number of its existing customers believes and promotes the use of sustainable goods. Based on findings of the research, the top management of the company decides to use eco-friendly raw materials in manufacturing their clothes. Which of the following strategies is Mitchell's using in this scenario? a) Market development b) Cost leadership c) Product differentiation d) Market penetration 44. Thompson Crayons Ltd. is a manufacturer of crayons and colored pencils in Rhodia. The company has started packaging their products in vibrant colored boxes, as opposed to brown boxes used in the past, in order to increase their sales. In this scenario, Thompson Crayons Ltd. is using a _____ strategy. a) product differentiation b) market development c) diversification d) market penetration 45. Which of the following statements is true about stars in the portfolio matrix? a) They have low growth potential and small market shares. b) They require minimal funding. c) They have low market shares in high-growth industries. d) They are fast growing market leaders. 46. Which of the following activities is carried out during implementation of a marketing plan? a) Defining the business mission b) Gathering information about customers c) Setting up strategic business units d) Creating and managing a task force 47. A marketing plan should: a) be viewed as a series of sequential steps. b) be developed independently of the external business environment. c) define the business mission. d) exclude budgets and pricing. 48. Which of the following actions is closely associated with the niche strategy? a) Choosing a target market that is not crucial for the success of major competitors b) Manufacturing products in bulk and targeting the average customer c) Selling products that do not have extra frills d) Creating cross-departmental teams across all the strategic business units 49. Which of the following can be considered as a business opportunity in the context of SWOT analysis? a) Qualified employees b) Good production facilities c) Low turnover rates d) Favorable government regulations 50. Which of the following considered by marketers is most closely related to distribution strategies? a) How can we make our product packaging attractive? b) Which market segment should we target? c) How can we effectively store raw materials? d) What should be our medium for advertising? 51. Turner Electronics is a ten-year-old company. In the past decade, the company hasn't created any innovative products that have helped set it apart from the rest of its competitors. However, when any of its products need to be repaired or fine-tuned, it offers its customers top-notch product checks. As a result, the company has managed to retain its wide customer base. Which of the following strategies is Turner Electronics using in this scenario? a) Product development b) Diversification c) Market penetration d) Service differentiation 52. Which of the following examples illustrates a niche strategy? a) Libra, a motor company, uses new production techniques to achieve economies of scale. b) Alpha Electronics has decided to dissolve one of its strategic business units. c) Venus Inc. has decided to target customers in Asia. d) Relish, a confectionery store, sells its products only in one city. 53. In the context of a marketing mix, the product strategy involves: a) warranty. b) point of purchase. c) price of the product. d) personal selling.. 54. Which of the following practices can help businesses gain a cost competitive advantage? a) Innovating simplified production techniques b) Using expensive raw materials c) Customizing products with extra frills d) Manufacturing products in smaller quantities 55. When properly created, a strategic business unit (SBU): a) has a specific target market. b) plans collaboratively with other SBUs of the company. c) has a maximum of hundred employees. d) shares the mission of its parent company. 56. Which of the following can help companies make strategic planning effective? a) Refraining from involving top management in the strategic planning process b) Making strategic an ongoing process rather than an annual exercise c) Eliminating managerial intuitions d) Avoiding cross-functional teams 57. Which of the following statements is true of strategic business units (SBUs) of an organization? a) They typically have strategies of their own. b) Their functions are limited to manufacturing. c) They typically serve the same target markets as the other SBUs of the organization. d) They do not have missions of their own. 58. A publisher of children's books defines its business as “printing books" instead of “meeting educational needs of students." This illustrates: a) marketing synergy. b) marketing myopia. c) opportunism d) self-dealing 59. The promotion component of the marketing mix involves: a) pricing strategies. b) personal selling. c) product packaging. d) manufacturing strategies. 60. The heart of the marketing mix is the: a) product offering and product strategy. b) place and distribution strategy. c) sales promotion and personal selling strategy. d) product packaging and pricing strategy. 61. Varion Air offers its customers a complementary air ticket on the purchase of three business class tickets. Varion Air's strategy best represents the ____ element of its marketing mix. a) distribution b) place c) promotion d) product 62. Jove is a chocolate manufacturing company in Harrington City. While most of its competitors produce not more than three basic varieties of chocolates, Jove sells over 50 different varieties of flavored chocolates. This gives them an edge over other chocolate makers in Harrington City. Which of the following concepts is illustrated in the scenario? a) Divestment b) Market penetration c) Sustainable competitive advantage d) Diversification 63. Companies can make strategic planning more effective by: a) ensuring the participation of top management. b) ensuring that decision making is centralized. c) making strategic planning an annual exercise. d) avoiding cross-functional teams. 64. Which of the following statement is true about the price component of a marketing mix? a) It is the quickest element to change. b) It is the least important of the four Ps. c) It is the starting point of the marketing mix. d) It is decided independently of the external environment of the business. 65. Synergy Corp. is large seller of energy-efficient bulbs that uses extensive promotional strategies to stimulate sales. Synergy has noticed that a competitor is doing well and is steadily gaining a large market share. The marketers at Synergy want to counter the competitor immediately by increasing the sales of its bulbs. What quick step can Synergy take to stimulate the sales of its products? a) Change the pricing strategy b) Adopt new production techniques c) Enter into new supplier contracts d) Adopt a divesting strategy 66. A company can gain a cost competitive advantage by: a) reorganizing functional departments into cross-disciplinary teams. b) manufacturing highly customized products. c) providing extra options on products or services. d) manufacturing products in small quantities. 67. A marketing mix typically involves: a) distribution strategies. b) divestiture strategies. c) restrictive covenants. d) federal regulations. 68. Which of the following actions can enable companies to gain a cost competitive advantage? a) Removing frills from products b) Increasing marginal customers c) Eliminating reverse engineering efforts d) Developing additional exclusive functional departments 69. The product in the marketing mix: a) includes point of purchase. b) includes company image. c) includes personal selling. d) includes pricing.. 70. Which of the following is an example of a market segment? a) A group of individuals who are diabetic b) A group of retailers selling the same products c) A group of companies manufacturing different products d) A group of individuals with different product requirements 71. Which of the following statements is true of a niche strategy? a) A niche strategy is most suitable for firms that have achieved economies of scale. b) A niche strategy requires business firms to reduce after-purchase service options. c) A niche strategy involves removing extra frills from products. d) A niche strategy is ideal for small companies with limited resources. 72. In the context of marketing mix, promotion includes: a) public relations activities. b) pricing strategies. c) after-purchase service. d) storage and transportation of finished products. 73. The notion of competitive advantage means that: a) a successful firm will stake out a position unique in some manner from its rivals. b) the advantage can be enjoyed only for a short period. c) a company manufactures products which are similar to those of its competitors. d) an established firm focuses solely on developing a low-price competitive advantage. 74. Which of the following is associated with the market development strategy? a) Limiting the production of products b) Increasing the prices of products c) Adding new features to products d) Limiting resources used for promotion 75. Cost competitive advantage can be achieved by: a) avoiding reverse engineering efforts. b) avoiding manufacturing products in bulk. c) avoiding marginal customers. d) avoiding government subsidies. 76. Nile Inc. is one of the leading shoe manufacturing companies in Baltoni. It manufactures canvas shoes that are quite similar to those produced by other brands. The management of the company has decided to adopt a product/service differentiation competitive strategy. What is Nile Inc. likely to do in this scenario? a) Offer their products at discounted rates and make the cost of their products lower than those of their competitors. b) Produce aerobic, tennis, and baseball shoes that have specialized features. c) Advertise their products through more media outlets than it previously did. d) Start selling products to markets outside Baltonia. 77. The product component of a marketing mix involves: a) point of purchase. b) distribution. c) advertising. d) brand name. 78. A marketing plan can be made more effective by: a) incorporating managerial intuition. b) incorporating marketing myopia. c) making it a series of sequential steps. d) keeping it brief and broad. 79. A marketing plan is most likely to discuss: a) first-line operational strategies. b) distribution channels. c) supplier details. d) downsizing strategies. 80. Which of the following is true of a product/service differentiation competitive advantage? a) It tends to be more attractive to top managers because of its durability. b) It provides a shorter-lasting competitive advantage compared to cost competitive advantages. c) It focuses primarily on offering a low priced product or service than that of the competitor. d) It is subject to continual erosion, as opposed to cost competitive advantages. 81. Which of the following statements is true of strategic business units (SBUs)? a) Each SBU of a company typically has its own return on investment. b) All SBUs of a company share the same goals and use the same strategies. c) All SBUs of a company target the same market segment. d) SBUs do not perform manufacturing functions. 82. Delta Corp. is a large corporation that offers several product lines. On the company's Web site, the following content is highlighted: “The aim of our business is to achieve profitability by offering our customers high quality products that are manufactured in a cost effective manner. Our goals are to provide value to our customers, serve the community, and preserve the environment." This content is most likely to be Delta's: a) article of incorporation b) financial statement c) bona fide occupational qualification d) mission statement 83. In the context of SWOT analysis, a strength of an organization can be: a) favorable government policies. b) lack of competitors. c) superior production technology. d) component lifestyles. 84. An effective business mission statement is: a) based on an analysis of anticipated environmental conditions. b) defined in terms of the products and services the company produces. c) based on short-term thinking and marketing myopia. d) developed independently of the external business environment. 85. Which of the following is a distinct feature of a product/service differentiation competitive advantage? a) Using government subsidies b) Controlling overhead costs c) Establishing a brand name d) Obtaining inexpensive raw materials 86. The focus of a mission statement of an organization should be on: a) supply chain management. b) internal operational procedures. c) anti-competitive strategies. d) the market the business serves. Ch. 8 11. Which of the following is true of satisficers? a. They are customers that are generally found in the consumer market. b. They consider numerous suppliers and study all proposals carefully before selecting one. c. They place orders with the first supplier that fulfills their requirements. d. They contact both familiar and unfamiliar suppliers when they need to purchase a product. 12. Which of the following best describes a multisegment targeting strategy? a. It is the effort to ensure that sales of a new product do not cut into sales of an existing product. b. It refers to choosing to serve two or more well-defined market segments and developing a distinct marketing mix for each. c. It refers to selecting one segment of a market for targeting marketing efforts and understanding the needs of the members in that segment. d. It is the division of a market by the amount of product bought or consumed. 13. Wesley Electronics Inc. manufactures electronic gadgets such as cell phones, computers, and laptops. To let people know about the products offered, the marketing managers of Wesley Electronics Inc. spend a great deal of money on advertising. They employed various methods of advertising such as print, television, and online advertising. Given this information, Wesley Electronics Inc. is in which step of market segmentation? a. Selecting a market category for study b. Designing and implementing marketing mixes c. Profiling and analyzing market segments d. Selecting the segmentation descriptors for a market 14. The purpose of market segmentation is to: a. change consumer attitudes and beliefs toward a product. b. divide a market into submarkets of equal size that have equal number of customers in each. c. group a large number of markets together, enabling a company to serve them simultaneously. d. enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments. 15. Volten Inc. is an online apparel store. It has separate sections for casual wear, office wear, and party wear. It also divides its products on the basis of price to suit people of various income levels. In this way, it caters to different sections of society. Which of the following bases has the company most likely used for positioning its products? a. Product class b. Emotion c. Attribute d. Product user 16. Which of the following is a disadvantage associated with an undifferentiated targeting strategy? a. It requires a firm to tailor marketing mixes to the preferences of market segments. b. It often results in product offerings that are unimaginative and sterile. c. It involves a high risk of cannibalization of products. d. It is expensive because of high production and marketing costs. 17. Wine Tasters Inc. is a magazine that targets people who appreciate wine and good food. Its major customer base include people who enjoy wine-tasting events and visit different restaurants. Given this information, Wine Tasters most likely relies on which of the following variables to identify its target market? a. Usage-rate segmentation b. Demographic segmentation c. Psychographic segmentation d. Benefit segmentation 18. In a concentrated targeting strategy, a firm: a. selects one segment of a market for targeting its marketing efforts. b. adopts a mass-market philosophy for targeting a market. c. views the market as one big market with no individual segments. d. chooses to serve two or more well-defined market segments. 19. Apart from long-term company profits, the major aim of customer relationship management (CRM) is to: a. implement concentrated targeting strategies. b. optimize customer satisfaction. c. reduce personalization of products according to customers' needs. d. minimize the use of database technology. 20. Which of the following is true of a concentrated targeting strategy? a. It allows a firm to serve two or more well-defined market segments simultaneously. b. It is often adopted by small firms to compete effectively with much larger firms. c. It follows a mass-market philosophy by viewing the market as one big market without any individual segments. d. It often results in cannibalization, which occurs when sales of a new product cuts into sales of an existing product. 21. Why do marketers who spend significant time promoting mass-marketing efforts need to be aware of customer relationship management (CRM)? a. One-size-fits-all marketing is no longer relevant because consumers want to be treated as the individuals they are. b. The time that consumers spend on making purchase decisions have risen in recent times. c. Mass-media approaches to marketing will rise in importance as technology allows marketers to collect detailed information. d. The importance of rewarding individual consumers for their loyalty has declined in the recent years. 22. Which of the following is a similarity between a stock market and a labor market? a. Both adopt a barter system to enable the exchange of products. b. Both have people who are unwilling to spend a large sum of money for products or services. c. Both have people with the necessary resources to buy desired products or services. d. Both deal with high-end, expensive products. 23. A multisegment targeting strategy differs from a concentrated targeting strategy in that it: a. selects one segment of a market with a goal to satisfy its members. b. faces a high potential cost from cannibalization of products. c. develops and maintains a common marketing mix for its products. d. results in sterile, unimaginative product offerings. 24. Kirksand Hotels is renowned for its service and individual treatment of its customers. All service staff and employees are encouraged to listen carefully to customers' wants and needs. For instance, if a traveler ordered soft pillows, wanted only martinis in his mini bar, and needed access to a fax machine, he would find all of these amenities in his room when he arrived. In this scenario, on which of the following trends has Kirksand Hotels based its customer relationship management (CRM)? a. Personalization b. Time savings c. Loyalty d. Technology Ch. 10 11. A difference between informational labeling and persuasive labeling is that informational labeling: a. focuses on a promotional theme or logo rather than consumer information. b. increases a consumer's cognitive dissonance after the purchase. c. helps a consumer make proper product selections. d. gives the impression of environmental friendliness to a product. 12. A number of yogurts are marketed under the Duncen brand, including Duncen All Natural, Duncen Fruit on the Bottom, Duncen Light & Fit, DunActive, and Dun-o-nino. The large variety of yogurts under the Duncen brand is an example of a: a. brand equity b. product item c. product mix d. promise index 13. Which of the following is true of product lines? a. They mandate a separate marketing strategy for each line. b. They provide economies of scale in advertising. c. They involve greater transportation and warehousing costs than product items. d. They help distinguish each version of a product from the others offered by a company. 14. When deciding on distribution plans for specialty products, companies generally ensure that the items are: a. made directly available to a consumer through a salesperson, direct mail, or direct response advertising. b. relatively inexpensive and merit little shopping effort. c. always marketed as unsought products. d. distributed to only a few stores in a geographic area. 15. Which of the following is true of an express warranty? a. It gives the impression of environmental friendliness to a product. b. It contains an unwritten guarantee about the performance of a product. c. It prohibits other firms from using a brand or part of a brand without permission. d. It ranges from simple statements to extensive documents written in technical language. 16. Which of the following is true of an implied warranty? a. It prohibits other firms from using a brand or part of a brand without permission. b. It identifies the brand of a part that makes up the product. c. It ranges from simple statements to extensive documents written in technical language. d. It comes with the sale of every product under the Uniform Commercial Code. 17. Elsem Foods is a manufacturer of food and beverages. It manufactures several varieties of foods like potato chips, cupcakes, candies, crackers, fruit juices, and carbonated drinks. It introduced a new line of baked potato chips in different flavors. It receives its largest profit from its newly introduced line of hundred percent fruit juices that are available in different flavors, such as orange, apple, litchi, cranberry, and so on. Which of the following is a product item of Elsem Foods? a. Baked potato chips b. Cupcakes c. Hundred percent orange juice d. Beverages 18. Which of the following is considered an advantage of decreasing a product's quality? a. It gives manufacturers greater ability to raise prices for the product. b. It allows manufacturers to appeal to target markets unable to afford the original product. c. It motivates customers to replace worn out products. d. It enhances the ease of coordinating promotion from market to market. 19. Which of the following is true of a specialty product? a. It is widely distributed in a geographic area in order to sell sufficient quantities to meet profit goals. b. It is marketed using selective, status-conscious advertising that maintains its exclusive image. c. It is bought only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility. d. It is sold using aggressive personal selling as consumers do not seek out this type of product. 20. Compared to convenience products, shopping products are: a. sold through aggressive personal selling and highly persuasive advertising. b. usually more expensive and are found in fewer stores. c. purchased without significant planning. d. available everywhere, including department stores, gas stations, and vending machines. 21. A mobile phone manufacturing company is said to functionally modify one of its products if it: a. introduces a sleek and stylish version of the mobile phone with the same specifications. b. reduces the price of the mobile phone ahead of a sale. c. introduces stylish headphones for the mobile phone. d. releases a software update to fix the mobile phone's heating problem. 22. Which of the following statements is true about the naming strategies for products sold in the global market? a. A one-brand-name strategy is useful when a company markets mainly one product. b. An advantage of using different brand names in different markets is greater identification of the product from market to market. c. A one-brand-name strategy reduces the ease of coordinating promotion from market to market. d. A disadvantage of using different brand names in different markets is that it does not support localization. 23. Which of the following is a difference between individual branding and family branding? a. Individual branding uses different brand names for different products, while family branding markets several different products under the same brand name. b. Individual branding is used when products do not vary in use or performance, while family branding is used when products vary greatly in use or performance. c. Individual branding identifies the brand of a part that makes up the product, while family branding identifies the entire product. d. Individual branding is used when two brands receive equal treatment, while family branding is used when two brands borrow from each other's brand equity. 24. Why are many retailers creating and promoting their own captive brands? a. Captive brands carry evidence of a store's affiliation and are available everywhere. b. Captive brands help to increase a company's presence in markets where it has little room to differentiate itself. c. Captive brands allow retailers to ask a price similar or equal to manufacturers' brands. d. Captive brands allow retailers to gain greater profits by marketing cheaper products under a brand name owned by them. 25. Which of the following is true of an unsought product? a. Marketers of unsought products often use selective, status-conscious advertising to maintain the product's exclusive image. b. Consumers buy unsought products regularly, usually without much planning. c. New products are categorized as unsought products until advertising and distribution increase consumer awareness of them. d. Consumers usually buy an unsought product only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility. Ch. 14 7. Which of the following is true of channel conflict? a. It always has a negative effect on the members of a channel. b. It is often caused by an unwillingness of traditional channel members to keep up with the changing times. c. It mixes elements of cooperation and competition between two partners who work together on the same initiative. d. It does not occur when multiple distribution channels are used. 8. The major characteristic that is used to differentiate intermediaries from one another is whether they: a. create specialization of labor. b. create economies of scale. c. raise profit margins for independent middlemen. d. take title to the products they sell. 9. Mezjo Inc. is a video store that sells DVDs and also sells popcorn, candy, soft drinks, and entertainment publications. It stores all of these products in separate warehouses and uses different modes of transportation to deliver them. Which of the following functions is described in this scenario? a. Transactional functions b. Research functions c. Logistical functions d. Financing functions 10. Which of the following is true of nontraditional channels? a. They detract from the profitability of the primary and secondary channels controlled by a business. b. They are used to sell stolen or counterfeited products. c. They enable a consumer to return a product when it reaches the end of its useful life. d. They help differentiate a firm's product from the competition. 11. Which of the following is true of the facilitating function performed by intermediaries? a. It involves explaining a product's features, advantages, and benefits. b. It includes transportation and storage of assets. c. It includes research and financing. d. It involves communicating with prospective buyers to make them aware of existing products. 12. Which of the following is a difference between a retailer channel and a wholesaler channel? a. A retailer channel is most common when the retailer is large and can buy in large quantities, while a wholesaler channel is commonly used for low-cost items that are frequently purchased. b. A retailer channel must be organized and managed as a group, while a wholesaler channel must be managed individually. c. A retailer channel helps differentiate a firm's final product from the competition, while a wholesaler channel does not. d. A retailer channel enables a retailer to use another manufacturer's already-established product, while a wholesaler channel does not. 13. Which of the following is a difference between vertical conflict and horizontal conflict? a. Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level. b. Vertical conflict is found when manufacturers practice multiple distribution strategies, while horizontal conflict is found when manufacturers practice a single distribution strategy. c. Vertical conflict occurs when a wholesaler chooses to bypass a producer, while horizontal conflict occurs when a producer chooses to bypass a wholesaler. d. Vertical conflict is primarily characterized by lying and breaking contractual agreements, while horizontal \conflict is primarily characterized by hiding and withholding information. Ch. 16 14. Two popular beverage manufacturing companies in different countries merge together to gain strategic advantages. The merger gives each brand access to a significantly larger market. To effectively reach both markets, the merged company needs to coordinate its promotional mix to produce a consistent, unified, and customer-focused message. In other words, the company needs to use: a. the AIDA model for product promotion. b. integrated marketing communications. c. transformational marketing. d. creative selling. 15. Which of the following statements is true of a promotional mix? a. Control over message content is greatest when public relations is used. b. A large audience is best reached with personal selling. c. In advertising, the sponsor or company is identified. d. The mode of communication for sales promotion is usually direct and personal. 16. Wild Plus, a television channel dedicated to wildlife, organizes promotional events in several shopping malls across the city to promote its new wildlife adventure series. Articles about the new program are also published in local newspapers. Therefore, Wild Plus is engaged in: a. promoting sales. b. generating publicity. c. personal selling. d. implicit communications. 17. Cover Board Inc. is a company that designs and prints advertisements on coffee sleeves used on cups sold in coffee shops. To find clients to advertise on the coffee cup sleeves, the company sends a representative to other companies to explain them the benefits of advertising on these sleeves. In this case, which of the following promotional strategies is used by Cover Board Inc.? a. Mass communication b. Implicit communication c. Personal selling d. Sales promotion 18. When a product is in the growth stage of its product life cycle, it is necessary to ensure that: a. all elements of the promotional mix are equally utilized. b. advertising and public relations continue to remain important. c. persuasive and reminder advertising are decreased. d. personal selling is reduced to a large extent. 19. Which of the following is a difference between a push and a pull strategy? a. Social media is used in a push strategy, while personal selling is used in a pull strategy. b. End consumers are targeted in a push strategy, while wholesalers are targeted in a pull strategy. c. Push strategies focus on content marketing, while pull strategies focus on personal selling. d. Retailers are targeted in a push strategy, while opinion leaders are targeted in a pull strategy. 20. To increase its revenues, an airline company decides to sell space on airsickness bags to companies that would like to use this unique channel for their promotional messages. In terms of the promotional strategy, the airsickness bags are being used for: a. integrated marketing communication. b. personal selling. c. executing a push strategy. d. advertising. 21. Which of the following statements is true of the characteristics of the elements in a promotional mix? a. The speed of feedback is delayed in sales promotion, advertising, and personal selling. b. Message flexibility is greatest with advertising. c. The message flow is two-way in public relations, sales promotions, and personal selling. d. Important promotional ingredients tend to receive the most funding. 22. A television channel promotes its new reality show through print and broadcast advertising as well as personal appearances by show participants in promotional events, Web sites, and merchandise signed by the participants. To make sure that all of the promotional messages are coordinated, the television channel should use the: a. integrated marketing communications approach. b. integrated communications management approach. c. AIDA model. d. interpersonal and mass communications approach. 23. Which of the following statements is true of advertising? a. The total costs of advertising are typically low. b. The messages in advertising are personalized. c. The cost per contact in advertising is low. d. Innovative media are not used in advertising. 24. A beverage company plans to launch a new energy drink. It decides to partly sponsor a marathon in the city. It places billboards and posters describing the new drink throughout the marathon route. Company representatives distribute flyers to people arriving to watch the marathon. The company also issues press releases as part of the product launch. Therefore, the company is executing a: a. sales promotion campaign. b. personal selling campaign. c. target marketing strategy. d. public relations strategy. 25. Which of the following statements is true of sales promotions? a. Public relations cannot effectively be used with sales promotions. b. Sales promotion is a type of direct marketing. c. Marketers view sales promotion as an attempt to create a long-term, committed relationship between customers and salespersons. d. Sales promotions include experiential marketing whereby marketers create events that enable customers to connect with brands. 26. The promotional mix elements that should be emphasized for products moving into the growth stage of the product life cycle are: a. public relations and reminder advertising. b. sales promotion and public relations. c. personal selling and persuasive advertising. d. sales promotion and personal selling. 27. Arise Food Corporation displays posters in supermarkets to promote its new range of pasta sauces. Which of the following stages of the communication process is the company engaged in during the course of promoting its products? a. Customizing b. Decoding c. Receiving d. Encoding 28. The fishing lures produced by Fun Lite Corporation are unique in that they are handcrafted. Advertising by the company emphasizes the point that how its lures, unlike others, are all handcrafted. This feature is the company's: a. publicity objective. b. marketing differentiator. c. competitive advantage. d. one-to-one marketing advantage. 29. Which of the following is true of a target market characterized by widely scattered potential customers, highly informed buyers, and brand-loyal repeat purchasers? a. It requires a promotional mix with more social media and less sales promotion. b. It requires a promotional mix with more personal selling and less advertising. c. It requires a promotional mix with more advertising and less personal selling. d. It requires a promotional mix with more sales promotion and less social media. 30. Which of the following statements is true of the AIDA model? a. It explains why public relations is the most important element in a promotional mix. b. It explains how all promotions influence purchase decisions. c. It discusses how consumers respond to marketing messages. d. It talks about marketing activities other than advertising, personal selling, and public relations. 31. The AIDA concept: a. does not include personal selling, advertising, and public relations. b. does not explain how all promotions influence purchase decisions. c. assumes that consumers regularly go through each stage of the process during all purchases. d. indicates that a purchase decision is the same for high-involvement and low-involvement products. Ch. 20 17. Liquiction Pool and Patio Inc. is a company known for its quality pool installations, excellent customer service, and reasonable prices. Given the demand, Liquiction could price its products higher, but it prefers to price its products such that it will earn a reasonable level of profits. Liquiction seems to base its pricing policy on: a. profit maximization. b. earning satisfactory profits. c. creating retained earnings. d. maintaining a status quo pricing. 18. Which of the following trends in the consumer market has increased the difficulty of setting the right price for a product? a. The unwillingness of many firms to maintain or regain their market share by cutting prices b. The decreased availability of bargain-priced private and generic product brands c. The careful evaluation of each product's price against its value by potential buyers d. The inability of consumers to do comparison shopping 19. For convenience, pricing objectives can be divided into three categories. They are: a. refundable, competitive, and attainable. b. perceived, actual, and situational. c. differentiated, niche, and undifferentiated. d. profit oriented, sales oriented, and status quo. 20. Britney is fifteen years old and wants to begin her own business selling cupcakes to coffee shops and restaurants. She is having a tough time deciding whether she should express her market share in terms of the revenue generated or the number of cupcakes sold. Regardless of what she chooses, which of the following types of pricing objectives is Britney considering? a. Status quo pricing b. Profit oriented c. Target return on investment d. Sales oriented 21. Yield management systems are used to: a. determine the availability of product substitutes in industries that are experiencing rapid change. b. profitably fill unused capacity by using complex mathematical systems. c. predict necessary service levels required to achieve revenue goals. d. determine whether it is financially more feasible to buy a new product or repair a broken one. 22. Which of the following statements is true about yield management systems (YMS)? a. They are used to eliminate the problem of simultaneous production and consumption from services. b. They are restricted to use only in service industries. c. They are complex pricing systems used to establish price equilibrium. d. They are used to make profitable use of the unused capacity of perishable goods. 23. GoodFurn Furniture Company has recently moved to a new, larger location. At the new location, it has been unable to attract sufficient customers. Its owner did not have the cash to pay the current loan installment due for the building and inventory. So, he decided to reduce all merchandise prices by at least 50 percent for a weekend sale to earn enough to make his loan payment. In this case, the owner's pricing objective can be classified as: a. market share maximization. b. satisfactory profits. c. asset maximization. d. sales maximization. 24. Which of the following is an advantage of status quo pricing? a. It leads to optimal pricing of a product. b. It maintains an organization's differential advantage. c. It gives greater importance to the demand and costs of a product. d. It requires little planning. 25. Why are more and more companies turning to dynamic pricing? a. To help adjust prices b. To implement bait pricing c. To implement free on board origin pricing d. To establish inelasticity of demand 26. Although many factors can influence the price of a product, the primary determinants are: a. the costs of manufacturing and distributing the product. b. the demand for the product and the cost to the seller for the product. c. the demand by consumers and the perceived quality of the product. d. the distribution and promotion strategies for the product. 27. During the hot summer months, the Nick Price Golf School offers a 25 percent reduction on its golf lessons to attract golfers during the off-season. Which of the following is exemplified in this scenario? a. The power of yield management systems b. The advantage of markup pricing c. The relationship between price and quality d. The use of price as a promotional tool 28. At Starmart, Riya saw a box of collector's edition comic books. Each book was priced at $28.50, but a customer who bought five of the books was required to pay only $19.99 for each book. Riya bought one book and her friend bought five books. What was the retailer's revenue from this purchase? a. $158.51 b. $19.99 c. $28.50 d. $128.45 29. Which of the following is true about shopping bots? a. They encourage a more creative use of advertising. b. They create opportunities for prestige pricing. c. They search the Web for the best price for a product. d. They create inelastic demand. 30. Which of the following is true of products in the introduction stage of their life cycle? a. Their prices will rise dramatically as they move into the specialty goods category. b. They experience price increases that are cost initiated. c. Their prices are usually set high. d. They experience an elastic demand in the core of the market. 31. What happens when demand is elastic? a. As price goes up, revenue goes down. b. As price goes down, revenue goes down. c. As price goes up, revenue goes up. d. As price goes up, revenue does not change. 32. Consumers are more likely to perceive the value of a product to be less than its cost if: a. the product's price is set too high. b. the product's manufacturer gains very little profit from the product. c. the product has an inelastic demand. d. the product's demand and supply attain the state of price equilibrium. 33. Which of the following is a similarity between broad-based shopping bots and niche-oriented shopping bots? a. Both search restricted government Web sites. b. Both operate using a Yellow Pages type of model in that they list every retailer they can find. c. Both search for only one type of product. d. Both theoretically give pricing power to consumers. 34. Pierre's Ice Cream Company produces ultra-rich ice cream, which it sells in Cleveland, Ohio, and other neighboring places. Last year, its actual return on investment exceeded its target return on investment (ROI) for that fiscal year. The following results were found on its financial statements: Gross revenues: $250,000 Total assets: $500,000 Gross profits: $100,000 Total liabilities: $200,000 Net profits after tax: $ 50,000 Owner's equity: $300,000 What was the actual ROI for Pierre's Ice Cream Company? a. 6.67 percent b. 10 percent c. 22 percent d. 28 percent 35. Profit-oriented pricing objectives include: a. target return on investment. b. target market share. c. sales maximization. d. status quo pricing. 36. At a local retail store, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items, which were sold together, retailed at $28.50 but were marked down to $19.99. The $19.99 is the: a. revenue. b. price. c. profit. d. liquidity value. 37. Which of the following statements is true about the Internet? a. The Internet has shifted all shopping power to consumers b. Consumer reviews on the Internet about various products tend to be equal in quality c. Business-to-business auctions on the Internet are likely to be the dominant form in the future d. Extranets are programs that search the Internet for the best price for a particular product 38. Shopping bots theoretically give pricing power to: a. consumers. b. wholesalers. c. retailers. d. agents. 39. At the end of summer, the Gloomin' Garden Inc. reduced the price on all of its plants, fertilizers, and potting soil by 50 percent in order to liquidate this inventory. What type of pricing strategy has been used by Gloomin' Garden Inc.? a. Supply oriented pricing b. Sales maximization c. Target return on investment d. Satisfactory profit 40. Dynamic pricing is used to: a. implement bait pricing to get more loyal customers. b. perform price discrimination among its customers. c. raise prices to maximize a company's revenues. d. attain price equilibrium. Ch.18 9. Which of the following is part of defining the sales goal of a company? a. Assigning quotas to salespeople b. Evaluating the sales force c. Training new salespeople d. Designing the sales force structure 10. Effective sales management begins with: a. determining sales goals. b. determining the most efficient structure for the sales force. c. specifying the sales force size. d. designing a compensation plan. 11. How can personal selling reduce the costs of promoting a product or service? a. By promoting a product to both qualified and nonqualified prospects b. By promoting undifferentiated sales messages toward prospective consumers c. By purchasing advertising and sales promotions in large amounts d. By adjusting the size of the sales force in one-person increments 12. During the preapproach stage of the selling process, a salesperson should: a. provide information about various referrals and discounts available. b. learn as much as possible about a prospect's organization and its buyers. c. create point-of-purchase displays. d. handle price objections and close the sale. 13. Personal selling is more important than advertising and sales promotion if the products being sold: a. are standardized. b. have many consumers. c. have a low value. d. are technically complex. 14. When compared to other forms of promotion, personal selling: a. becomes more important as the number of potential customers increases. b. tends to be more effective in selling frequently purchased products. c. gives more freedom for the sales message to be customized according to the interests of the prospective customers. d. provides better prospects for the sale of simple, low-involvement products that require little thought before purchase. Ch. 19 12. Crowdsourcing describes: a. how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people. b. how the level of buzz created for a product can be used as a measurable parameter for determining the product's effectiveness. c. the methods in which a consumer should use a product or service. d. the need for consumers to buy a product and their willingness to buy it. 13. Which of the following is the first stage involved in creating an effective social media plan? a. Listening to customers b. Setting social media objectives c. Defining strategies d. Identifying the target audience 14. Short message service (SMS) is different from multimedia messaging service (MMS) in that: a. SMS allows 960-character text messages, while MMS allows 160-character text messages. b. SMS is designed specifically for viewing and navigation on mobile devices, while MMS does not have such features. c. SMS does not allow the attachment of images, videos, and ringtones to text messages, while MMS allows. d. SMS does not require Internet, while MMS requires Internet for functioning. 15. Which of the following is true of brands, organizations, and nonprofits that use Facebook? a. They have thus far been unsuccessful in their attempts to use the platform to create viral marketing campaigns. b. Their pages are public and are thus subject to search engine indexing. c. They are restricted from communicating directly with fans and interested stakeholders due to risks of hacking. d. Their ability to optimize search engine results is very low. 16. Social bookmarking sites differ from social news sites in that: a. the objective of their users is to collect, save, and share interesting and valuable links. b. they allow users to edit the stories they find for accuracy. c. the ability of users to share, post, or discuss a topic is very limited. d. they treat location-based social networking as a game. 17. By far, the largest social network for gaming is: a. Twitter. b. LinkedIn. c. SnapChat. d. Facebook. 18. Which of the following best describes a collector? a. A person who posts comments, ratings, and reviews of products and services on blogs and forums b. A person who produces content for blogs, Web sites, articles, and videos c. A person who uses RSS feeds to gather information and vote for Web sites online d. A person who posts status updates on social networking sites and microblogging services 19. The first action a marketing team should take when initiating a social media campaign is: a. establish a listening platform. b. identify the medium for the campaign. c. identify potential consumers. d. decide which tools and platforms to use as part of its social media strategy. 20. Angela and Dominic own Slice Pizzeria. They keep track of the number of mentions their store receives on sites like Twitter and Facebook, but they are unsure of what steps to take next. Based on the eight stages of effective listening, Angela and Dominic are currently in the _____ of developing an effective listening system. a. stage 1 b. stage 2 c. stage 3 d. stage 4 21. Which of the following is a location-based social networking site? a. Facebook b. Twitter c. WordPress d. FourSquare 22. Much of the growth in social media sites can be attributed to: a. good old-fashioned word-of-mouth promotion. b. new platforms like tablets and smartphones. c. media hype. d. reduced demand for crowdsourcing. 23. Which of the following actions is performed during the final stage of an effective social media plan? a. Setting objectives that can be specifically accomplished through social media b. Examining trends and best practices in the industry c. Listening to customers and understanding their expectations d. Making changes to a newly implemented campaign based on consumer response 24. Marla, a 55-year-old woman, wants to stay in touch with her son, who is away at college. She also hopes to connect with some of her high school friends. Which of the following is Marla most likely to use for this purpose? a. SoundCloud b. YouTube c. Facebook d. Flickr 25. Which of the following changes has been brought about in advertising because of the influence of social media? a. The number of ways in which marketers can have direct and meaningful conversations with customers has reduced. b. The focus of social media has unavoidably shifted to manufacturers. c. The interaction between producer and consumer has become less about engaging and more about entertaining. d. The audience is often in control of the message, the medium, the response, or all three. 26. Which type of social media user posts comments, ratings, and reviews of products and services on blogs and forums? a. Critics b. Spectators c. Joiners d. Inactives 27. Social media measurements are meaningless if: a. they require further processing. b. they are tied to performance indicators. c. they are taken from many sources. d. they lack context. 28. Which of the following is true of social media? a. It cannot be compared to traditional advertising in any meaningful way. b. It offers a mass-media method of interacting with customers. c. It has less sophisticated ways of measuring how marketers meet and interact with consumers than traditional advertising. d. It offers more one-to-one ways to meet consumers than traditional marketing media. 29. In the context of the eight stages of effective listening, which of the following is a purpose of stage one, listening without objectives? a. Identifying influencers to improve overall marketing strategy b. Measuring impact of satisfaction or frustration during interaction c. Generating high sense of satisfaction for customers d. Keeping up with brand and competitor information 30. A popular production house wants to release a teaser of one of its upcoming movies to create a buzz among the public. Which of the following is the best platform that can be used by the studio? a. Picasa b. Photobucket c. YouTube d. Imgur 31. TwitPic, Flickr, and Photobucket are all examples of: a. media sharing sites. b. corporate blogs. c. virtual worlds. d. microblogs. [Show More]

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