2308y_En_Y21_3_modul_Əyani_Yekun imtahan testinin sualları Fənn : 2308y Marketinq

1. Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's
want nowhas become a(n) .
need
transaction
exchange
√ demand
necessity

2. When backed by buying power, wants become

 Demands

3. … are human needs that are shaped by culture and individual personality.
• Values
• Necessities
• Demands
√ Wants
• Exchanges

4. According to the five-step model of the marketing process, which of the following is the final step in creating value for
customers?
A) designing a customer-driven marketing strategy
B) understanding the marketplace and customer needs
C) constructing an integrated marketing program that delivers superior value
D) building profitable relationships and creating customer delight
√capturing value from customers to create profit and customer equity

5. marketing is practiced by an organization that understands and anticipates customer needs even better than
customers themselves do and creates products and services to meet current and future needs.

A) Customer-driven
√ Customer-driving
C) Affinity
D) Societal
E) Ambush

6. Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her
expectations about Brand X lotion, Sally was measuring her level of .
• share of customer
• customer-perceived value
• customer lifetime value
√ customer satisfaction
• customer equity

7. Carol Veldt's plan also involves a seasonal promotional gimmick that she wants to promote aggressively. This is an example
of the
concept.
 selling

8. Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and
want through .

 creating and exchanging products and value with others.

9. .
 • aggressive advertising
• limited customer services
• the performance of

The primary key to delivering customer satisfaction is to match product performance with .
• aggressive advertising
• limited customer services
• the performance of competitive products
• competitive prices
√ customer expectations

10. The set of marketing tools a firm uses to implement its marketing strategy is called the .
• market offering
• marketing effort
• product mix
• promotion mix
√ marketing mix

11. Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a
national obesity epidemic and environmental problems. These fast-food restaurants overlook the philosophy.

• production concept
• selling concep
• product concept
√ societal marketing concept
• marketing concept

12. The societal marketing concept seeks to establish a balance between .

• customer lifetime value and customer equity
• customer-driven marketing and customer-driving marketing
• marketing mixes and market offerings
√ consumer short-run wants and consumer long-run welfare
• an inside-out perspective and an outside-in perspective

13. Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions better than competitors do?

• the societal marketing concept

• the production concept
• the product concept
√ the marketing concept
• the selling concept

14. Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions
rather thanlong-term customer relationships?

• the product concept

• the societal marketing concept
• the marketing concept
• the production concept
√ the selling concept
15. The concept is aligned with the philosophy of continuous product improvement and the belief that customers
will choose products that offer the most in quality, performance, and innovative features.
• production
 • selling
• marketing
√ product
• societal marketing

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious
individuals,
16. and people identified as trendsetters who try out new products in the market before others. These three groups are examples of
------
.
• marketing intermediaries
• market offerings
√ market segments
• value propositions
• marketing mixes

17. Dividing the market into various groups of customers that a company may serve is called .
• differentiation
• target marketing
√ market segmentation
• positioning
• customization

18. Seagull Terrace offers its customers good accommodations, local delicacies, and amazing seaside views. The overall
experience provided at the motel is a part of its .
• target market
• marketing mix
• product positioning
√ market offering
• market segment

19. A is some combination of products, services, information, or experiences provided to consumers to satisfy a need or
want.
• market segment
• market mix
• brand positioning
√ value proposition
• market offering
20. Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's
want nowhas become a(n) .
• need
• transaction
• exchange
√ demand
• necessity
21. are human needs that are shaped by culture and individual personality.
• Values
• Necessities
• Demands
√ Wants
• Exchanges
22. According to the five-step model of the marketing process, a company should before designing a customer-driven
marketingstrategy.
• use customer relationship management to create full partnerships with key customers
 • construct an integrated marketing program
• build profitable relationships with customers
• determine how to deliver superior value to customers
√ understand the marketplace and customer needs and wants

23. According to the five-step model of the marketing process, which of the following is the final step in creating value
for customers?
• Understanding the marketplace and customer needs
• designing a customer-driven marketing strategy
• building profitable relationships and creating customer delight
• constructing an integrated marketing program that delivers superior value
√ capturing value from customers to create profit and customer equity

24. Which of the following is true with regard to strategic planning?

A) At the corporate level, the company starts the strategic planning process by determining
what portfolio of businesses and products is best for the company.
B) A strategic plan deals with a company's short-term goals.
√The focus of strategic planning is to define a game plan for long-run survival and growth.
D) The strategic plan is a statement of an organization's purpose.
E) Strategic planning involves identifying segments of consumers with identical preferences.

 They address questions of competitive advantage and synergy.

25. … is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing
marketing opportunities.
• Market segmentation
• Benchmarking
• SWOT analysis
√ Strategic planning
• Diversification

26. Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply
chain?

√ production concept
b) product concept
c) selling concept
d) marketing concept
e) societal marketing concept

27. Which of the following customer questions is answered by a company's value proposition?
 "Why should I buy your brand rather than a competitor's?"

28. Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?
A) customer lock-in
B) a cartel
C) marketing mix
√ value proposition
E) market segmentation

29. Consumer research, product development, communication, distribution, pricing, and service are all core activities.
 marketing

30. is the act of obtaining a desired object from someone by offering something in return.

 Exchange

31. Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying
consumer needs?
 Marketing myopia
32. A is some combination of products, services, information, or experiences provided to consumers to satisfy a need or
want.

• market segment
• market mix
• brand positioning
√ value proposition
• market offering

33. Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular
televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a
strategy.

• product development
• product adaptation
• local marketing
• diversification
√ market development

34. Which of the following is a portfolio-planning tool for identifying company growth opportunities through market
penetration, market development, product development, or diversification?
• Harris matrix
• SWOT analysis
• analysis of variance
• BCG matrix
√ product/market expansion grid

35. The BCG matrix approach is problematic in that it .

• tends to undermine the importance of relative market share as a measure of company strength in the market
√ focuses solely on current businesses and provides little scope for future planning
• tends to undermine the importance of market growth rate as a measure of market attractiveness
• focuses on planning for the future at the cost of ignoring the present
• fails to classify SBUs

36. The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG
matrix, the pharmaceuticals division of Omni can be classified as a .

• star
• dog
• cash cow
√ question mark
• bear

37. are low-growth, high-share businesses/products that need less investment to hold their market share.

• Bears
• Stars
• Question marks
√ Cash cows
• Dogs

38. The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that
manufactures gardening tools. Each of these businesses is called a .
• prospect
 • market segment
• question mark
√ strategic business unit
• product portfolio

39. According to the Boston Consulting Group approach, serves as a measure of company strength in the market.

• product development
• market segmentation
• product attribute
√ relative market share
• market diversification

40. According to the Boston Consulting Group approach, provides a measure of market attractiveness.

• market penetration
• product design
• product attribute
√ market growth rate
• market segmentation

41. During portfolio analysis, a company after identifying the key businesses that make up the company.

• assesses its strengths and weaknesses

• assesses the effectiveness of its various channel intermediaries
• performs a SWOT analysis
√ assesses the attractiveness of its various SBUs
• formulates a short-term marketing plan

42. The major activity in strategic planning is , whereby management evaluates the products and businesses that
make up the company.

• benchmarking
• prospecting
• breakeven analysis
√ business portfolio analysis
• SWOT analysis

43. The collection of businesses and products that make up a company is called its .

• strategic business unit

• internal value chain
√ business portfolio
• strategic plan
• supply chain

44. Mission statements should and be defined in terms of .

• be product oriented; satisfying the esteem needs of customers

• address sales and profits; the net return on investments
• embody the company's short-term plans; current opportunities
√ value proposition
• be technology oriented; meeting the self-actualization needs of customers

45. Which of the following is the first step in strategic planning?

• setting short-term goals

 • identifying the organization's weaknesses and the threats it faces
• formulating the key marketing strategies
√ defining the organizational mission
• developing the business portfolio

46. is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its
changing marketing opportunities.
• Market segmentation
• Benchmarking
• SWOT analysis
√ Strategic planning
• Diversification
47. Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her
expectations about Brand X lotion, Sally was measuring her level of .

• share of customer
• customer-perceived value
• customer lifetime value
√ customer satisfaction
• customer equity

48. Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses,
and threats. Which of the following would be best suited for his purpose?
 SWOT analysis
B. cluster analysis
C. portfolio analysis
D. regression analysis
E. Porter's 5 forces analysis

49. In the marketing mix, design, packaging, services, and variety can be categorized under .

 product
B) price
C) promotion
D) place
E) position

50. Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the
minds of target consumers is known as .

 Positioning

51. Paul Robinson has identified a group of potential customers who seem to respond in a similar way to a series of magazine
and radio advertisements for his company's product. Paul has identified a .

 market segment
52. Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a
given set of marketing efforts. In this instance, Rob has been asked to identify a .

 market segment
53. Ron and Gail plan to lower Fun-Spot's prices in an effort to encourage customers to stay longer, visit more often, and
spend more money during each visit. What type of strategy are Ron and Gail planning?

 market penetration
B) market development
C) product development
D) product adaptation
E) diversification

54. Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business.
This is an example of .

 Diversification

55. A documents an organization's purpose—what it wants to accomplish in the larger environment.

 mission statement
A mission statement is a statement of the organization's reason for being, its purpose – what it wants to accomplish in the
 larger environment.

56. Which of the following is NOT a step in the strategic planning process?

57. Which of the following is the first step in strategic planning?

• setting short-term goals

• identifying the organization's weaknesses and the threats it faces
• formulating the key marketing strategies
√ defining the organizational mission
• developing the business portfolio
58. Which of the following is true with regard to media publics?

• The primary function of this group is to protect the interests of minority groups.
√ This group carries news, features, and editorial opinion.
• This group includes neighborhood residents and community organizations.
• This group directly influences the company's ability to obtain funds.
• The primary function of this group is to critique the marketing decisions of companies

59. The environment consists of institutions and other forces that affect a society's basic values, perceptions,
preferences, andbehaviors.
√ cultural
• physical
• social
• natural
• political

60. The environment consists of laws, government agencies, and pressure groups that influence or limit various
organizations andindividuals in a given society.
• cultural
√ political
• economic
• technological
• socio-legal

61. The economic environment consists of economic factors that affect .

• cultural patterns of communities

√ consumer purchasing power
• entrepreneurial orientation of a population
• the natural environment
• the quality of technological innovation

62. The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently studying the size, density, location,
age, and occupation of its target market. Which of the following environments is being studied in this scenario?
• political environment
√ demographic environment
 • technological environment
• cultural environment
• economic environment

63. Price & Malone Corp., a company based in Houston, caters to a market of individuals and households that buy goods and
services for personal consumption. Price & Malone caters to a market.
• business
√ consumer
• government
• wholesale
• reseller

64. include banks, credit companies, insurance companies, and other businesses that help insure against the risks
associated with the buying and selling of goods.

• Physical distribution firms

√ Financial intermediaries
• Marketing services agencies
• Wholesalers
• Resellers
65. Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In
this instance, Sam has been directed to study the of the organization.
• microenvironment
√ macroenvironment
• marketing intermediaries
• marketing mix
• internal environment

66. Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's
ability to build and maintain successful relationships with target customers?
• marketing orientation
√ marketing environment
• target markets
• marketing mix
• strategic planning

Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the
company, suppliers,
67. marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the
of the company.

• macroenvironment
√ microenvironment
• demographic environment
• political environment
• technological environment

68. Which of the following is true with regard to cash cows?

• They require significant cash to maintain market share.
√ They can be used to help finance the company's question marks and stars.
• They are low-share businesses and products.
• They do not promise to be large sources of cash.
• They are high-growth, high-share businesses or products

69. Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen
segments. This process involves market segmentation, , differentiation, and positioning.
• marketing implementation
√ market targeting
• market diversification
• price discrimination
• supply-chain analysis
70. The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each
other toimprove the performance of the entire system is known as the .

• business portfolio
 value delivery network
• supply chain
• internal value chain
• marketing mix
71. Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment options for their visitors. This type of
strategy can be best described as .
• market penetration
 product development
• niche marketing
• diversification
• market development

72. A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office
furniture. This is an example of .
• market development
 diversification
• market penetration
• product differentiation
• product development
73. A company can an SBU by selling it or phasing it out and using the resources elsewhere.

 divest
• promote
• expand
• harvest
• hold

74. The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG
matrix, the pharmaceuticals division of Omni can be classified as a .
• star
• dog
• cash cow
 question mark
• bear

75. Which of the following is true with regard to cash cows?

• They require significant cash to maintain market share.
 They can be used to help finance the company's question marks and stars.
• They are low-share businesses and products.
• They do not promise to be large sources of cash.
• They are high-growth, high-share businesses or products

76. are a type of SBU that often require heavy investments to finance their rapid growth.

 Cash cows
 Question marks
 Stars
 Dogs
 Bears

77. The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that
manufactures gardening tools. Each of these businesses is called a .
• prospect
• market segment
• question mark
 strategic business unit
• product portfolio

78. Which of the following is true of the BCG matrix approach?

• It is inexpensive to implement.
• It does not have any limitations.
 It considers market growth rate to be a measure of market attractiveness.
• It describes consumer motivations and needs.
• It does not consider relative market share to be a measure of company strength in the market.

79. According to the Boston Consulting Group approach, serves as a measure of company strength in the market.
 • product development
• market segmentation
• product attribute
√ relative market share
• market diversification

80. Which of the following is NOT a market-oriented business definition?

 "We empower customers to realize their dreams."
 "We make high-quality consumer food products."
 "We sell success and status."
 "We create the Hilton experience."
 "We bring innovation to every home."

81. Kei, a senior marketing manager of a pizzeria in North Florida, is currently researching electronic collections of consumer
information within the company network to arrive at crucial marketing decisions. In this instance, Kei is using .
• data warehouses
• causal research
• ethnographic research
• descriptive research
√ internal databases

The market researchers at HoneyCamp Foods gather daily sales data and sort it by product line and region. With the help
82. of sophisticated tools and techniques, they develop the data needed by marketing managers to evaluate the market share of
the company's different products and also to gain valuable market insights. This mix of people and procedures at
HoneyCamp Foods that generate actionable marketing insights represents a(n)
 • business portfolio
• product mix
• enterprise planning system
√ marketing information system
• strategic planning system

83. A(n) consists of people and procedures dedicated to assessing information needs, developing the needed
information, andhelping decision makers use the information to generate and validate actionable customer and market
insights.
• enterprise planning system
• geographic information system
• corporate performance management system
√ marketing information system
• enterprise information system

84. The term big data refers to the generated by today's sophisticated information generation, collection, storage, and
analysis technologies.
• information requests
• large reports
• e-mail messages
• social media contacts
√ huge and complex data sets
85. Mercury Inc., an American multinational corporation, is currently planning to enter the promising consumer goods market
in India. The firm will most likely discover that beliefs and values are more open to change in India.

 Secondary

86. A society's are expressed in how people view themselves and others, organizations, society, nature, and the
universe.

 cultural values

87. Trends in the natural environment include all of the following EXCEPT .

 decreased costs of product development

88. markets buy goods and services for further processing.

 Business

89. Companies can succeed against their competitors by all of the following except .

 providing the same product as the competition

90. Which of the following is the final step of the marketing research process?

• developing the research plan

√ interpreting and reporting the findings
• selecting a research agency
• defining the research objectives
• implementing the research plan

91. Which of the following is the first step in the marketing research process?

• interpreting and reporting the findings

• developing the research plan
• developing a marketing information system
  defining the problem and objectives of the study
• implementing the research plan

92. is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an
organization.

 Marketing research

93. Which of the following statements is true regarding marketing intelligence?

• The goal of marketing intelligence is to improve recruiting efforts.

• The advantage of using marketing intelligence is negligible.
 Marketing intelligence relies upon publicly available information.
• Marketing intelligence relies upon costly internal databases.
• Companies using marketing intelligence routinely ignore consumers' online chatter.

94.
is the systematic collection and analysis of publicly available information about consumers, competitors, and
developments in the marketing environment.

 Competitive marketing intelligence

95. Which of the following is a disadvantage of using information from internal databases?

• It is not possible to verify information obtained from internal databases.

• Internal databases do not support highly sophisticated technologies that make it difficult to store large volumes of data.
• Using information from internal databases leads to biased research findings.
 Internal information may be incomplete or in the wrong form for making marketing decisions.
• Obtaining information from internal databases is both time-consuming as well as expensive.

96. LandPort Transportation and Omega Warehousing help companies move and stock goods from their manufacturing
plants to their destinations. These two businesses are examples of …
 physical distribution firms.

97. Mercury Inc., an American multinational corporation, is currently planning to enter the promising consumer goods market
in India. The firm will most likely discover that beliefs and values are more open to change in India.

 Secondary

98. A society's are expressed in how people view themselves and others, organizations, society, nature, and the universe.

 cultural values

99. The physical environment affecting marketing activities is referred to as the environment.

 natural

100. Rachel works for a furniture company in Ireland. She is responsible for buying and selling goods at a profit to small
retailers. Rachel most likely operates in a market.

 reseller
101. markets buy goods and services for further processing.

 Business
102. Which group includes neighborhood residents and community organizations?

 Local Publics

103. Companies can succeed against their competitors by all of the following EXCEPT
  providing the same product as the competition

104. Which of the following is true with regard to the product/expansion grid?

 It is a useful device for identifying growth opportunities.

105. Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing
number of patrons. This exemplifies
 Market penetration.
 106. Primary data consist of .

• data obtained from the public domain

• information that is the least expensive and the easiest to obtain
• information that already exists somewhere, having been collected for another purpose
 information collected for the specific purpose at hand
• data that does not age

107. According to the model of buyer behavior, which of the following is one of the two primary parts of a "buyer's black box"?

• buyer's spending habits

• social stimuli
• promotion stimuli
 buyer's decision process
• technological stimuli

108. Companies can research many aspects of buying decisions. However, the one that is the most difficult to identify is
 why they buy.

109. A person's buying choices are influenced by four major psychological factors. Which of the following is NOT one of these
factors?

• learning
• motivation
• perception
 association
• beliefs

110. is a person's pattern of living as expressed in his/her psychographics, and it includes the individual's activities,
opinion interests, and
s.

 Lifestyle

111. A buyer's decisions are influenced by such as the buyer's age and life-cycle stage, occupation, economic situation,
lifestyle, personality, and self-concept.

 personal characteristics

112. are people within a reference group who, because of special skills, knowledge, personality, or other
characteristics, exert influence on others.

 Opinion leaders

113. Which of the following statements is true of social classes?

• Social classes universally exhibit identical product and brand preferences.
 People within a social class tend to exhibit similar buying behavior.
• Income is the single factor that determines social class.
• Members of a social class have unique and distinct values, interests, and behaviors.
• Social classes are society's temporary divisions.

114. Consumer purchases are influenced strongly by characteristics that

marketers cannot control but must take into account, including cultural, social, psychological, and characteristics.
• economic
• genetic
• medical
√ personal
• professional

115. Each culture contains smaller , or groups of people with shared value
 systems based on common life experiences andsituations.
• cultural universals
• reference groups
• social networks
√ subcultures
• monocultures

116. Secondary data consist of .

• information collected for the specific purpose at hand
• data that is unreliable and unsuitable for the purpose of making marketing decisions
• data that does not age
 √information that already exists somewhere, having been collected for another purpose
• information collected from conducting personal, in-depth interviews

117. Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a
particular brand of soft drink?
• internal research
• demographic research
• exploratory research
√ descriptive research
• causal research

118. The objective of causal research is to .

• assign a cause to a seemingly random event

• gather preliminary information that will help suggest hypotheses
• describe things, such as the market potential for a product
√ test hypotheses about cause-and-effect relationships
• predict the effect of a random event on unrelated entities

119. In research, the objective is to gather preliminary information that will help define the problem and suggest
hypotheses.
• causal
• statistical
• descriptive
• analytic
√ exploratory

120. Akira Takano, a marketing manager, is

about to test the hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in the selling
price of the product. Akira is involved in research.
• descriptive
• exploratory
• ethnographic
• constructive
√ causal

121. As a consequence of the green movement, many companies are developing strategies and practices that support .
 government intervention
 environmental sustainability
 deregulation
 mass marketing
 rapid exploitation of natural resources

122. Governments develop public policy to .

 guide commence
123. Laws are passed to define and prevent unfair competition primarily because

 Businesses sometimes try to neutralize threatening firm.

124. A company or association's is designed to help guide responses to complex social responsibility issues.
 code of ethics
 cause-related marketing
 discretion in enforcing regulations
 privacy policy
 core value system

125. Maria works for Sigma Inc., a firm that helps companies target and promote their products to the right markets. Sigma is
most likely
 Marketing services agency

126. Marketers should understand that people's core beliefs and values tend to be .

 Fixed

127. segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.
• Geographic
• Demographic
• Benefit
• Occasion
√ Psychographic

128. segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income,
occupation, education, religion, ethnicity, and generation.

• Geographic
• Occasion
• Psychographic
√ Demographic
• Benefit

129. calls for dividing the market into regions, states, counties, cities, or even neighborhoods.
• Benefit segmentation
• Occasion segmentation
• Demographic segmentation
√ Geographic segmentation
• Psychographic segmentation

130. Which of the following is NOT one of the major variables used in segmenting consumer markets?
• geographic
• behavioral
√ ethical
• psychographic
• demographic

131. consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing
products inthe minds of target consumers.

• Differentiation
• Targeting
• Segmentation
 Positioning
• Mass customization
132. involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that
might require separate marketing strategies or mixes.

• Market targeting
• Mass customization

• Differentiation

√ Market segmentation
• Positioning

133. consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.
• Market segmentation
• Differentiation
• Positioning
• Mass customization
√ Market targeting

134. Companies know they cannot appeal to all buyers in the marketplace, or at least not in the
same way. Reasons for this include all of the following EXCEP
• buyers are widely scattered
√ companies need more information to offer the right products to the right customers
• buyers are too numerous
• buyers are varied in their needs and buying practices
• companies vary widely in their abilities to serve different market segments

135. When customers have low involvement in a purchase but perceive significant brand differences, they will most likely engage
in .

• habitual buying behavior

• consumer ethnocentrism
• complex buying behavior
• dissonance-reducing buying behavior
 variety-seeking buying behavior

136. Which of the following consumer buying behaviors is related to conditions of low-consumer involvement and little significant
brand difference?
• consumer capitalism
• variety-seeking buying behavior
√ habitual buying behavior
• dissonance-reducing buying behavior
• complex buying behavior

137. When consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands,
they most likely will exhibit .
√ dissonance-reducing buying behavior
• complex buying behavior
• variety-seeking buying behavior
• impulse buying behavior
• habitual buying behavior

138. When consumers are highly involved with the purchase of an expensive product and they perceive significant differences
 among brands,
they most likely will exhibit .
• consumer ethnocentrism
• dissonance-reducing buying behavior
• variety-seeking buying behavior
√ complex buying behavior
• habitual buying behavior

Mark has long supported a particular brand of footwear and has always bought that brand. Recently, the footwear
manufacturer was
139. embroiled in a controversy for using child labor at its manufacturing plants. Mark doubts the news reports and continues to
purchase the same brand of footwear. It is most accurate to say that Mark displays .
• selective retention
• cognitive dissonance
• selective attention
• consumer ethnocentrism
√ selective distortion

140. People cannot focus on all of the stimuli that surround them each day. A person's tendency to screen out
most of the information is called .
• cognitive dissonance
• subliminal retention
• selective distortion
√ selective attention
• cognitive inertia

.
141. Maslow's theory is that can be arranged in a hierarchy.

• marketing stimuli
• decisions
• perceptions
 human needs
• personal beliefs

142. Customer information is often buried deep in separate databases and records of different company departments. To overcome
such problems, many companies are now turning to ________ to manage detailed information about individual customers.

 customer relationship management

143. Which of the following is true about customer relationship management (CRM)?

 The heart of a CRM program is information technology and database systems.

 CRM aims to maximize customer loyalty.

144. In CRM, ________ techniques are used to sort through data and locate useful findings about customers.

 *Data mining, Marketing analytics

145. Joe Kerry, owner of a small bakery, wants to obtain marketing insights to improve his business. Joe has a limited budget and
would like to gather free secondary data. What is the best option for Joe?

 internet search engines

146. Which of the following is true with regard to problems faced by international researchers?

 Translation of questionnaires increases research costs and risks of error.

147. .¬_______ involves gathering primary data by closely examining relevant people, actions, and situations.
  Observational research

148. ¬______ involves gathering primary data by asking people questions about their knowledge, attitudes, preferences, or buying
behavior. It is the most widely used method for primary data collection.

 Survey research
149. _______¬¬¬consists of inviting 6 to 10 people to meet with a trained moderator to talk about a product, service, or
organization.
 Focus group interviewing

150. A segment of the population selected for marketing research to represent the population as a whole.

 Sample

151. Which of the following is most likely true about international research?

 Costly international research is necessary if firms want to succeed in foreign markets.

152. Which of the following is an example of a pure tangible good?

• a laptop with a comprehensive warranty for three years

• an agency that offers free legal advice
 a bag of potato chips
• an online shoe retailer that provides free home delivery
• a credit card

153. ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially
intangible and do not result in the ownership of anything.

• Consumer products
• Specialty products
 Services
• Brands
• Liabilities

154. Which of the following is true with regard to products?

• The quality of products is far more difficult to measure than that of services.
• Products are not meant for sale in the market.
 Products include services, events, persons, places, organizations, ideas, or a mixture of these.
• Products do not include experiences, organizations, persons, places, and ideas.
• Products refer to only those activities that are essentially intangible.

155. Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks.
This is an example of differentiation.

• product
• image
• people
√ channel
• price

156. Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo
provide strong company or brand recognition and are indicative of differentiation.

• services
• product
 image
• channel
• people

157. The Jay Group hires better employees than its competition by conducting effective searches and multi-tiered interviews.
 The company also provides high quality training to its employees, an aspect often neglected by competitors. The Jay Group is
most likely to gain a strong competitive advantage through which type of differentiation?

• image differentiation
• channel differentiation
• product differentiation
√ people differentiation
• services differentiation

158. An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ¬¬¬¬-
_______
segmentation.

• benefit
 psychographic
• income
• occasion
• geographic

159. Which of the following refers to a cultural factor in the context of segmenting international markets?

• stability of the government

• economic development of the country
• receptivity of foreign firms
• population income levels
 values and attitudes

160. Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The
demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most
of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?
 occasion segmentation
• gender segmentation
• psychographic segmentation
• age and life-cycle segmentation
• geographic segmentation

161. ¬_____segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a
product.
 Behavioral
• Age and life-cycle
• geographic
• gender
• psychographic

162. Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members
of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows
a(n) ________ segmentation approach.

• gender
• benefit
• geographic
• occasion
 income

163. Which of the following variables are the most popular for marketers to use in segmenting customer groups?

• psychographic
• geographic
• ethical
• behavioral
 demographic
164. George is buying his first house. He has spent a month looking at houses and comparing attributes such as price and location.
He has contacted several real estate agents to look at different types of houses. George is most likely exhibiting ________.

 Complex buying behavior

165. Eduardo usually purchases the same breakfast cereal, the kind he grew up eating. Eduardo exhibits ________
 habitual buying behavior

166. Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand; instead she does a lot of
brand switching. Carrie exhibits ________.

 variety-seeking buying behavior

167. The buying decision process starts with ________, in which the buyer spots a problem.

 need recognition

168. The buyer decision process consists of five stages. Which of the following is NOT one of these stages?

 conspicuous consumption
 variety-seeking buying behaviour

169. An invitation to go skiing over the weekend forced Donna to look at her current wardrobe. She realized that she required a
warmer coat. Which of the following stages of the buyer decision process does Donna exemplify?

 need recognition

170. Donna wants to buy a new coat. During the stage of the buyer decision
process she will ask her friends to recommend stores that sell good quality winterwear clothing. She will also go through
newspapers and magazines to look out for offers and sales on coats.

 Information search

171. Marketers describe the way a consumer processes information to arrive at brand choices as

 alternative evaluation.

Cameron loves to own and be up-to-date on the latest technological gadgets available in the market. Among his friends, he is always
the
172. first to own the latest electronic gadgets. He loves trying out new products before others. Cameron most likely belongs to
the
adopter group.

 Innovator
173. Which of the following questions is an example of a closed-end question?
 where are you employed

174. refers to the measurement of brain activity to learn how consumers feel and respond.

 Neuromarketing

175. Acquisition refers to .

 the buying of a whole company, a patent, or a license to produce someone else's product

176. If a service employee provides the service, then the employee becomes a part of the service. This is an example of service

 inseparability

177. Service means that services cannot be stored for later sale or use.
  Perishability

178. Service means that the quality of services depends on who provides them as well as when, where, and how they are
provided.

 Variability

179. Service means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.

 Intangibility

180. A is a group of products that are closely related because they function in a similar manner, are sold
to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.

 Product line

181. involves designing and producing the container or wrapper for a product.

 Packaging

182. A is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or
service.

 Brand

183. Product attributes include all of the following EXCEPT .

 Price

184. are consumer products that the consumer either does not know about or knows about but does not normally think
about buying.

 Unsought products

185. Which of the following states the product's membership in a category and then shows its point of difference from other
members of thecategory?
 positioning statement

186. Apex describes its clothing line as,

"Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes
sure you get noticed." This exemplifies a .

 positioning statement

187. The relationship between the

consumer's expectations and the product's determines whether the buyer is
satisfied or dissatisfied with a purchase.

 Perceived performance

188. Almost all major purchases result in , or discomfort caused by postpurchase conflict

 Cognitive dissonance

189. Consumers learn about new products for the first time and make the decision to buy those products during the .

 Adaption process

190. is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

 Perception
 Mark has long supported a particular brand of footwear and has always bought that brand. Recently, the footwear
manufacturer was
191. embroiled in a controversy for using child labor at its manufacturing plants. Mark doubts the news reports and continues to
purchase the same brand of footwear. It is most accurate to say that Mark displays .

 selective distortion

192. People tend to interpret new information in a way that will support what they already believe. This is called .

 Selective distortion

193. describes changes in an individual's behavior arising from experience.

 Learning

194. A detailed version of a new idea stated in meaningful customer terms is called a product .

 concept
195. Which of the following statements best explains why idea screening may be the most important step of new product
development?

 it saves the company money in product development costs by giving the green light to only the product ideas that are likely
to be profitable

Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted
in
196. a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best
ideas during the
stage.

 Idea screening

197. Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and
members of the public into the new product innovation process?
• idea screening
• concept testing
• outsourcing
√ crowdsourcing
• brainstorming

198. Which of the following is an external source for ideas?

• salespeople
• manufacturing staff
• project managers
• engineers
√ suppliers

199. Which of the following is an internal source for new product ideas?
• government agencies
• trade magazines
√ company employees
• marketing research firms
• competitors

200. New product development starts with .

• idea screening
• test marketing
• concept development
• concept testing
√ idea generation

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be
201. some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed
looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They
developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a .
• concept test
• product idea
• product image
√ prototype
• product concept
202. Which of the following stages of the new product development process occurs immediately after the completion of the
business analysis for the product or service?
• product design
• idea screening
• marketing strategy development
√ product development
• product activation

203. Once managers of The Grecian Urn have decided on their product
concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the stage of the new
product development process.
• business process reengineering
• concept testing
• test marketing
• business transformation
√ business analysis

204. Which stage of new product development requires management to estimate minimum and maximum sales to assess the
range of risk inlaunching a new product?
• test marketing
• concept testing
• marketing strategy development
√ business analysis
• product development

205. A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's
objectives is called a

• business proposal
• product acceptance
√ business analysis
• marketing strategy development
• business feasibility plan

206. Which of the following stages in the new product development would a firm engage in immediately after the completion of
concept testing?
• idea generation
• product development
• idea screening
√ marketing strategy development
• business analysis

207. Which of the following groups do marketers involve for the process of concept testing new products?
• suppliers
• competitors
• manufacturers
√ target consumers
• employees

208. An attractive product idea must be developed into a .

• product strategy
• brand placement
• concept alternative
• brand personality
√ product concept

209. involves the use of a successful brand name for new or modified products in a new category.

• line extension
 • product line
 brand extension
• private brand
• brand symbol

210. shows consumer perceptions of a company's brands versus competing products on important buying dimensions.
• Gap analyses
• Predictive buying
• Cluster analyses
 Perceptional positioning map
• Cost-benefit analyses

211. To the extent that a company can differentiate and position itself as providing superior customer value, it gains .

 Competitive advantage
• Complementary assets
• Service life
• Core competences
• Contingent liability

212. Through differentiation, brands can be differentiated on features, performance, or style and design.
• Services
• Channel
• People
 Product
• Price

213. Even when competing offers look the same, buyers may perceive a difference based on differentiation.
 Image
• People
• Price
• Channel
• Services

214. The full mix of benefits on which a brand is differentiated and positioned is known as the brand's .
• Demand chain
• Supply chain
• Service life
 Value proposition
• Value stream

215. Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use positioning.
• More for the same
• More for less
• Less for much less
• More for more
 Same for less

216. positioning involves meeting consumers' lower performance or quality requirements at a much lower price.
• More for less
 Less for much less
• Same for less
• More for more
• More for the same

217. The winning value proposition would be to offer .

• more for the same
 more for less
• more for more
 • same for less
• same for more

218. What sets the floor for product prices?

• advertising budgets
• consumer perceptions of the product's value
• market competition
• competitors' strategies
√ product costs

219. What sets the ceiling for product prices?

• sellers' perceptions of the product's value

√ customer perceptions of the product's value
• product manufacturing costs
• variable costs
• break-even volume
220. Which of the following is true with regard to price?

• Price is the least flexible element in the marketing mix.

• Historically, price has had the least perceptible impact on buyer choice.
• Prices only have an indirect impact on a firm's bottom line.
• Unlike product features and channel commitments, prices cannot be changed quickly.
√ Price is the sum of all the values that customers give up to gain the benefits of having a product.

221. refers to the amount of money charged for a product or service.

• Wage
• Value
• Cost
√ Price
• Salary

222. Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

• when management lacks confidence in the marketing strategy

• when the product has no substitutes and is new in its category
• when the new product requires a major investment
• when management lacks confidence in the new product
√ when the costs of developing and introducing the product are low

223. Companies that adopt value-added pricing .

• overprice their products without any apparent justification
• underprice their products and lower quality to boost demand in the short-run
• consider value-added features as a fitting substitute for aggressive cost cutting
• set incredibly low prices to meet competition
√ attach value-added features and services to differentiate their offers and support their higher prices

224. pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices
temporarily onselected items.

• Break-even
• Cost-plus
• Everyday low
√ High-low
• Penetration

225. Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an
example of
pricing.
• cost-plus
• competition-based
• penetration
• break-even
√ everyday low

226. When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely
using
pricing.
• target return
• break-even
• target profit
√ good-value
• cost-plus

227. pricing refers to offering just the right combination of quality and gratifying service at a fair price.
 • Markup
• Break-even
• Target profit
√ Good-value
• Cost-plus

A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company
228 justifies the highprice of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also
claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of
. the following pricing strategies is the pharmaceutical company most likely using in this instance?
• target pricing
• break-even pricing
• cost-based pricing
√ value-based pricing
• markup pricing

229. Which of the following processes does value-based pricing reverse?

• value-added pricing
• good-value pricing
√ cost-based pricing
• everyday low pricing
• high-low pricing

230. Factors a company considers in setting its price include all of the following EXCEPT .

• overall marketing strategy and mix

• nature of the market and demand
• competitors' strategies and prices
• product costs
√ value of the product on the pre-owned market
231. Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities.
The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?
• ambush marketing
• affinity marketing
• controlled test markets
• simulated test markets
√ standard test markets

232. Manufacturers must comply with specific laws regarding .

• profit margins
 product quality and safety
• product harvesting
• distribution channel length
• product life cycles

233. Brand refers to how highly consumers regard and respect the brand.

 Esteem (Brand esteem)

• Conformance
• Differentiation
• Relevance
• Knowledge

234. The fundamental asset underlying brand equity is , the value of customer relationships that the brand creates.

• Customer mix
 Customer equity
• The product experience
• Service variability
• The service encounter

235. The strongest brands are positioned on .

• Desirable benefit
• Good packaging
• Service inseparability
 Strong beliefs and values
• Product attributes

236. A good brand name should most likely be .

• Trendy
• Complex
• Long
• Conventional
 Distinctive

237. Which of the following is true with regard to store brands?

• Store brands have been declining in popularity and strength for more than two decades.
• Store brands are also known as national brands.
 Store brands are created and owned by resellers of a product or service.
• Increasing consumer distrust toward store brands has led to a store-brand slump.
• Store brands are growing far slower than manufacturer's brands.

238. Some companies obtain the rights to use the names or symbols previously created by other
 manufacturers for a fee. This process is known as .

• multibranding
• positioning
• segmenting
• co-branding
 licensing

239. occurs when two established brand names of different companies are used on the same product.

• Market diversification
• Niche marketing
 Co-branding
• Licensing
• Cannibalization

240 occurs when a company introduces additional items in a given product category under the same brand name, such
as newflavors, forms, colors, ingredients, or package sizes.
.
 Line extension
• Megabranding
• Interactive marketing
• Internal marketing
• Co-branding

241. Usingpricing, companies are able to turn their trash into cash, allowing them to make the price of their
main product more competitive.
• optional product
• product line
• captive product
√ by-product
• product bundle

242. Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are
compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?
• product bundle pricing
• optional product pricing
• product line pricing
√ captive product pricing
• by-product pricing

243. Which of the following product mix pricing strategies involves pricing products that can only be used with the main
product?

• by-product pricing
• optional product pricing
• product line pricing
√ captive product pricing
• product bundle pricing

244. Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the
main product?
  optional-product pricing

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to
more
245. sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is
Tone Zone using for its range of tablets?

• by-product pricing
• captive product pricing
√ product line pricing
• optional product pricing
• product bundle pricing

246. Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost
differences between the products, customer evaluations of different features, and competitors' prices?
• captive product pricing
• optional product pricing
√ product line pricing
• product bundle pricing
• by-product pricing

In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its
products by
247. 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the
reduction in priceseveral times over. Which of the following pricing strategies are they using?

• by-product pricing
√ market-penetration pricing
• cash discount pricing
• captive-product pricing
• market-skimming pricing
248. Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are
using the
strategy.
• market-skimming pricing
• exclusive pricing
• cost-plus pricing
√ market-penetration pricing
• inclusive pricing

Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per
bottle. The
249. company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the
initial price. Which of the following pricing strategies is Midnight Magic using?

• product-line pricing
√ market-skimming pricing
• cost-plus pricing
• competitive pricing
• market-penetration pricing

250.
When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the
pricing strategy.
• competitive
• cost-plus
• market-segmentation
√ market-skimming
• market-penetration

251. Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-
penetration pricing and pricing.

 Market skimming

252. The learning curve is representative of the .

 Drop in the average per-unit production cost that comes with accumulated production experience

253 involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of
return for effort and risk.
.
 Cost-based pricing

In an effort to differentiate its offerings from its competitors, Pegasus Computers decided to add an extra USB port in all
254 its laptops besides providing a free pair of Delphi power bass headphones with every Pegasus laptop. Although the
additional features increased the price of the laptops by $500, Pegasus was confident that the strategy would help boost
. demand for its laptops substantially. This is an example of .

 Value-added pricing

255. Which of the following is true with regard to value-added pricing?

 Companies practicing value-added pricing differentiate their offers by attaching value-added features to offerings
that, in turn, justify higher prices.

256. In which situation is the market dominated by one seller?

 Monopoly
257. refers to a measure of the sensitivity of demand to changes in price.
 Price elasticity

258. Which of the following best characterizes the decline stage of product development?
 sales and profits decline

259. Which of the following statements characterizes the introduction stage of the PLC?
 Profits are nonexistent.

260. Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?
 growth

261. is the product life cycle period when sales fall off and profits drop.
 Decline

262.
is the product life cycle period when sales growth slows because the product has achieved acceptance. Profits
level off because marketing costs increase in the face of competition.

• Growth
 Maturity
• Introduction
• Decline
• Product development

263. A style is best defined as a .

 Basic and descriptive mode of expression

264. According to the PLC, the stage is reached when sales plunge to zero, or when they drop to a low level where they
continue for many years.
 Decline
265 At which stage in the PLC do profits increase as promotion costs are spread over a large volume, and as the firm enters new
. market segments?
 growth

266. Which of the following is true of conventional distribution channels?

• Channel members are assigned roles according to a clearly defined framework.
• Channel members have complete control over each other.
• Channel members work exclusively for the good of the organization.
• Channel conflict is governed by formal mechanisms.
√ Channel members seek to maximize their own profits.

267. A(n) consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its
own profits, sometimes even at the expense of the system as a whole.
• resource bank
• product platform
• multitiered supply chain
• intrinsic market matrix
√ conventional distribution channel

268. Conflict that occurs between different levels of the same marketing channel is known as conflict.

• equilateral
• horizontal
• multitiered
√ vertical
• communal

269. Conflict that occurs among firms at the same level of the marketing channel is known as conflict.

• vertical
• financial
• prolonged
√ horizontal
• multitiered

270. The greater the number of channel levels in a marketing channel, the .

• greater the control producers have over the distribution of their products
• less time it takes for products to reach end-consumers
• less distance between producer and end-consumer
√ greater the channel complexity
• greater the control producers have over the demand of their products

271. A marketing channel that consists of one or more intermediaries is known as a(n) marketing channel.

• direct
• upstream
√ indirect
• cyclic
• looped

272. In a(n) channel, the same member both produces and distributes a product or service to consumers.

• exclusive
• vertical
√ direct
• platform
• tiered
273 A is a set of interdependent organizations that help make a product or service available for use or
. consumption by theconsumer or business user.
 • product delivery network
• product line
• resource bank
• consumer base
√ marketing channel

274 A is made up of the company, suppliers, distributors, and customers who partner to improve the performance
. of the entire system.
• product delivery network
• product line
• horizontal channel
• consumer base
√ value delivery network

275 The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled
. to the same services. This form of pricing is called pricing.
• by-product
• product form
• psychological
√ customer-segment
• captive product

276. By definition, pricing is used when a firm sells a product or service at two or more prices, even though the
difference in priceis not based on differences in cost.
√ segmented
• reference
• variable
• flexible
• cost-plus

277. Which of the following is a price adjustment strategy?

• product line pricing

• by-product pricing
• product bundle pricing
√ discount and allowance pricing
• optional product pricing

Noticing that themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit.
He prices the
278. kit—which comprises letter paper, matching envelopes, and pens—at $5, even though the combined prices of the individual
items is $8. Which of the following pricing strategies is he using?

• optional product pricing

• captive product pricing
√ product bundle pricing
• dynamic pricing
• by-product pricing
279. Which of the following product mix pricing strategies involves pricing multiple products to be sold together?

• captive product pricing

• by-product pricing
• product line pricing
 product bundle pricing
• optional product pricing

280. A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the
milling process are a(n) ________ that can be sold.

• primary product
• bundled product
• captive product
 by-product
• optional product

281. Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an
example of ________.

 promotional pricing

282. The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

 dynamic pricing

283. Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings?

 Competition-based pricing

284. Which of the following is an external factor that affects pricing decisions in a company?

 the nature of the market

285. Which of the following is an internal factor that affects pricing decisions in a company?

 the overall marketing strategy of the company

286. Developing an effective integrated marketing mix program involves coordinating price decisions with product design, promotion,
and ________ decisions.

 distribution

287. Under ________, the market consists of many buyers and sellers trading in a uniform commodity.

 pure competition

288. ________ refers to the process of putting thought into symbolic form.

 Encoding

289. Today, most companies are adopting the concept of ________, which carefully combines and coordinates the company's many
communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.

• pull strategy
• buzz marketing
 integrated marketing communications
• nonpersonal communication channels
• vertical diversification

290. Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events, and
Web pages?

• direct and digital marketing

 • sales promotion
• horizontal diversification
• advertising
 public relations

290. Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events,
and Web pages?

 Public relations

291. Which major promotion category uses catalogs, direct mail, e-mail, mobile marketing and social media?

 Direct and digital marketing

292. Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products to wholesalers and individual customers.
This is an example of ________.

 Personal selling

293. ______ includes sales presentations, trade shows, and incentive programs.

 Personal selling

294. Which of the following promotion categories is most likely to include the use of displays, discounts, coupons, and
demonstrations?

 Sales promotion

295. Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and
events?

 Public relations

296. The use of short-term incentives to encourage the purchase or sale of a product or service is called ________.

 Sales promotion

297. In a(n) ________, leadership is assumed not through common ownership or contractual ties but through the size and power of one
or a few dominant channel members.

 Administered VMS

298. A ________ VMS consists of independent firms at different levels of production and distribution who join together through
formal agreements to obtain more economies or sales impact than each could achieve alone.

 Contractual

299. A ________ VMS integrates successive stages of production and distribution under single ownership.

 Corporate

300. Which of the following is true of vertical marketing systems?

 Producers, wholesalers and retailers act as a unified system

301. A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system.

 Vertical

302. ________ consists of strong short-term incentives that invite and reward quick responses from customers.

 Sales promotion
303. ________ is very believable because news stories, features, sponsorships, and events seem more real and believable to readers
than ads do.

 Public Relations 14

304. Under which promotional mix strategy does the producer direct its marketing activities toward channel members to induce them
to carry the product and promote it to final consumers?

 Push Strategy

305. Whitelight sells its toothpastes in many convenience stores across the country. This is an example of distribution.

 exclusive
 selective
 hybrid
 intensive
 normal

306. Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of distribution.

 exclusive
• selective
• intensive
• indirect
• corporate
307.
distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a
product company's
s.

• Exclusive
 Selective
• Intensive
• Indirect
• Corporate
308. When the seller allows only certain outlets to carry its products, this strategy is called .

 exclusive distribution
• subjective dealing
• selective distribution
• exclusive pricing
• disintermediation
309. Which term refers to prices that buyers carry in their minds and check with when they look at a given product?

• product line prices

 reference prices
• location-based prices
• product-form prices
• time-based prices
310. What type of pricing is being used when a company temporarily prices its product below the list price or even below cost
to create buying excitement and urgency?
• segmented pricing
• international pricing
• reference pricing
 promotional pricing
• basing-point pricing
311. Which of the following types of advertising will most likely result in an advertising war?

• informative advertising
• reminder advertising
• covert advertising
• institutional advertising
 comparative advertising
312. When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored
 spotty service. This example best illustrates .

• covert advertising
• institutional advertising
• informative advertising
• reminder advertising
 comparative advertising

313 becomes more important as competition increases. With this type of advertising, a company's objective is to build
deman selective
. d.
 • Not-for-profit advertising
• Reminder advertising
 Persuasive advertising
• Informative advertising
• Institutional advertising
314. Which of the following is an objective of persuasive advertising?

• describe available services and support

• communicate customer value
• keep the brand in a customer's mind during off-seasons
• correct false impressions
 engage customers and create brand community
315. When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from
walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser?

 informative advertising
• comparative advertising
• developmental advertising
• reminder advertising
• persuasive advertising
316. Which of the following is most likely an objective of informative advertising?

• keep the brand in customer minds during off-seasons

• change customer perceptions of brand value
• build brand preference
 suggest new uses for a product
• encourage customers to switch brands
317. An advertising objective is classified by its primary purpose, which is to inform, persuade, or .

• reciprocate
 remind
• explain
• suggest
• compete
318. Competitive parity and task methods are considered when making decisions about .

• message structure
• sales objectives
• message effectiveness
• media selection
 budget

319. Marketing management must make important decisions when developing an advertising program. Which of the following
is NOT one of those decisions?

• setting advertising objectives

• evaluating advertising effectiveness
• developing advertising strategy
 designing products and distribution
• setting the advertising budget

320. Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called .

• direct marketing
• sales promotion
• public relations
• personal selling
 advertising
321. A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the
advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or
 distortion is called .

• response
• encoding
• feedback
 noise
• decoding
322. In a communication process, a receiver assigns meaning to the symbols encoded by a company in its advertisements
through a process known as .

• coordinating
• reciprocating
• integrating
 decoding
• acknowledging
323. In the communication process, an actual HP printer/fax machine advertisement would be considered .

• the medium
• encoding
• decoding
 the message
• the product
324. A(n) is a set of symbols that the sender transmits.

• encoder
• decoder
• feedback loop
 message
• media
325. HP's advertising agency assembles words and illustrations into an advertisement that conveys the company's intended brand
message. In the context of the communication process, HP is .

• messaging
• decoding
 encoding
• sending
• responding
326. Which of the following statements is true of direct marketing?

• In direct marketing, consumers earn a commission every time they buy a product.
• Direct marketing involves two or more intermediaries.
• Salespersons are compensated for other salespeople they recruit.
• Direct marketing is also referred to as referral marketing.
 Direct marketing offers sellers a low-cost alternative for reaching their markets.

327. A(n) is designed to present brand content that engages consumers and creates customer-brand community.

• branded community Web site

• online magazine
• digital catalog
 podcast
• search engine

328. Gant Hardware is a huge chain of hardware stores. GantHardware.com helps customers conduct product research and also
lets them order directly online or redirects them to the nearest Gant retail store. Which of the following best describes
GantHardware.com?

• blog
• social network
• digital catalog
 marketing Web site
• podcast
Oscarz Aviation's Web site, GoOscarzAv.com, informs customers about a wide variety of services offered by the firm. It
 also has a
329. guestbook where customers can provide feedback on their experiences with Oscarz Aviation. They can also view
videos Oscarz Aviation posts, as well as read and respond to blogs and ask questions. GoOscarzAv.com is an
example of a(n) .

• kiosk
• digital catalog
• online social network
• blog
 branded community Web site
Spartan Sportsgear is a company that sells sports equipment for adventure sports. It recently launched ExtremeSpartan.com
to showcase
330. products and provide testimonials of famous adventure sports athletes who use Spartan's products. It also includes
videos and blogs. Which of the following best describes ExtremeSpartan.com?

• podcast
• digital catalog
• social network
 branded community Web site
• blog
331. are designed to engage consumers in interactions that will move them closer to a direct purchase or other marketing
outcome.

• Podcasts
• Digital catalogs
 Marketing Web sites
• Search engines
• Online magazines
332. Which of the following is the fastest growing form of direct marketing?

• direct-mail marketing
• telemarketing
• kiosk marketing
 digital marketing
• ambush marketing
333. Which of the following is true about online direct marketing?

• Online direct marketing is also referred to as multi-level marketing.

• In online direct marketing, outside and inside sales forces coordinate to provide value products to customers.
• Online direct marketing involves two or more intermediaries.
 Online direct marketing allows sellers to create immediate, timely, and personal offers.
• Salespersons are compensated for other salespeople they recruit.

334. With direct marketing, companies can interact with customers in all of the following ways EXCEPT .

• by phone or online
• personalizing products and services
• learning more about customers' needs
 n person
• answering questions from customers
335. All of the following are benefits of online direct marketing for buyers EXCEPT .

• privacy
• access to numerous products
• access to product reviews
 live product demonstrations
• convenience

336. Amazon.com and GEICO approach customers via Web sites or mobile apps. This is an example of marketing.

• mass
• multi-level
 individual
 • niche
• direct

337. A product in the maturity stage will most likely require advertising.

• informative
• covert
• persuasive
 reminder
• comparative
338. Which of the following is one of the primary goals of reminder advertising?

• restore company image

• inform the market of a price change
 maintain customer relationships
• correct false impressions
• build brand preference
339. Keeping the brand in a customer's mind during off-seasons is most likely a goal of advertising.

• attack
• informative
• competitive
• covert
 reminder