Marketing Management-120

  

Part 1

Question 1 of 20

The Southwind Camper Co. has as its primary goal to sell 10,000 camper trailers each year. From this type of objective, you can conclude that the company:

A. has a marketing orientation. 

B. does not adhere to the marketing concept. 

C. has determined to satisfy existing customer needs. 

D. wants to use a product development strategy. 

Question 2 of 20

The implementation of the marketing concept in a company should produce company-wide managerial:

A. appreciation of the consumer’s role as it is related to the firm’s existence, growth, and stability. 

B. effort based on participation and interaction of company officers in establishing corporate and departmental goals. 

C. concern with the effect of new products on the firm’s present and future profit position. 

D. attentiveness to all of the above. 

Question 3 of 20

Strategic planning:

A. includes all the activities that lead to the development of a clear organizational mission, organizational objectives, and appropriate strategies to achieve those objectives. 

B. should emphasize current cash flows, market share gains, and earning trends. 

C. cannot be used to prepare for inevitable changes in the market environment. 

D. should be developed by and be the sole responsibility of the organization’s top managers. 

Question 4 of 20

During the 1940s, Odorono was a very popular, widely advertised antiperspirant. The product was manufactured by the Odorono Company in New York City. The product came in liquid and solid form and eliminated perspiration on hands, feet, forehead, and under arms. The most likely reason why this company no longer exists is:

A. its lack of customer orientation. 

B. a poorly chosen name. 

C. its failure to modify its strategy to reflect the changing environment.

D. a poor use of the promotional mix. 

Question 5 of 20

Imagine a chain of steak restaurants that had as its mission statement to provide its customers with the world’s best steaks. Changes in consumer tastes resulted in fewer customers for the steakhouses. In Rationale to decreased demand, the restaurant over a period of time added chicken, vegetarian lasagna, seafood, and pizzas to its menu. Now, the chain of restaurants can best be described as a(n):

A. organization that adheres to a production orientation. 

B. organization without any strategy. 

C. drifting organization.

D. organization that adheres to a selling orientation. 

Question 6 of 20

Which of the following statements about a mission statement is true?

A. Even though no one denies the importance of the mission statement, it is the least used of all of the management tools. 

B. An effective mission statement takes an internal organizational focus. 

C. A generalized mission statement is more effective than one that is specific because it allows the organization to respond quickly to a changing environment. 

D. It is not uncommon for an organization to spend one to two years developing a useful mission statement. 

Question 7 of 20

Slatescape is a relatively new company that mines and crushes slate for use as mulch in gardens. In order to __________, the managers of the company reviewed the historical records of the mine from which it is getting the slate. Its managers also determined that slate is available in only a few areas of the world. In addition, the managers examined its acceptance within the community, federal regulations, which affect its operation, and its existing and potential competitors.

A. develop a mission statement 

B. distinguish between primary and secondary objectives 

C. develop an effective marketing mix 

D. evaluate its marketing plan 

Question 8 of 20

Belinda Nunez wants to open a gallery in which she will feature young Hispanic artists. She was unsure if the new business would succeed until she read in the local newspaper that 55 percent of the community in which she will be operating the gallery is Hispanic. Which of the following statements could describe this situation?

A. Nunez needs to realize that even the most carefully conducted research can be fraught with errors.

B. Nunez needs some primary marketing research before she invests her money and time in this project. 

C. Nunez should make the decision to open the gallery based on her own experiences in the community-and not on marketing research alone. 

D. All of the above statements can be used to describe this situation. 

Question 9 of 20

Which of the following statements about marketing research is true?

A. Marketing research proves the old adage, “You get what you pay for.” 

B. Many marketing managers view marketing research as the final answer to their problems. 

C. You don’t need intuition or experience when you have marketing research. 

D. Good marketing research considers all the factors that could influence the success of a marketing strategy. 

Question 10 of 20

Reading of Toledo, Inc., makes a streaked griddle that produces char-broiled looking meat without the grease flare-ups, the smoke, or the wasted energy. Sales have been down recently for its streaked griddle. Its marketing manager wonders if the sales decrease is due to consumer health concerns that grilled meat causes cancer. The manager wants to do marketing research to see if the firm needs to modify the product or do more consumer advertising. The marketing manager:

A. is in the first stage of the market research process. 

B. must realize this is a channel issue. 

C. will have to rely solely on secondary data. 

D. will next need to determine how the gathered data will be processed. 

Question 11 of 20

The Five Ps of the research process are the purpose of the research, the plan of the research, the performance of the research, the processing of the research, and the:

A. preparation of the research.

B. predictability of the research. 

C. promotion of the research results. 

D. propagation of the research.

Question 12 of 20

By the end of the first stage of the marketing research process, managers and researchers should agree on:

A. whether the company will do its own research or hire a marketing research specialist. 

B. whether primary or secondary data will be used. 

C. the specific question or questions the research is designed to investigate. 

D. the type of quantitative research to be conducted. 

Question 13 of 20

A research plan:

A. explains the methodology, but does not justify its use. 

B. is influenced by whether primary or secondary data are to be gathered. 

C. is unaffected by who conducts the research.

D. is created as part of the research processing stage. 

Question 14 of 20

When the television show ER ran its final episode for the 2001-2002 season, it showed two smallpox victims and the subsequent quarantine of everyone who had been exposed to the smallpox. The day prior to the airing of the television show, the Center for Disease Control and Prevention released survey information stating that most Americans do not realize that naturally occurring smallpox has been eradicated from the world. The center’s research report is an example of:

A. quantitative primary data. 

B. data mining. 

C. secondary data. 

D. research intended for internal marketing purposes. 

Question 15 of 20

In terms of consumption decisions, middle class consumers prefer to:

A. buy at a market that sells at a wholesale rates. 

B. buy what is popular. 

C. buy only the brands which sell at affordable prices. 

D. analyze the market and select the best at the lowest prices. 

Question 16 of 20

Which of the following statements about culture is true?

A. In today’s society, family is the key source of culture. 

B. Educational institutions do not play a role in transmitting culture. 

C. One’s culture is based on one’s wealth, skill, and power. 

D. None of the above statements about culture is true.

Question 17 of 20

One of the reasons for the popularity of the Survivor television series is the interaction of urban vs. rural dwellers, baby boomers vs. Gen Xers, and devout Christians vs. agnostics. In other words, the producers of the shows select a variety of:

A. subcultures. 

B. social classes. 

C. aspirational groups. 

D. cultures. 

Question 18 of 20

Which of the following is an example of a social influence on consumer behavior?

A. The fashion editor of Seventeen magazine writes that any teen who wants to be well-dressed for the first day of school must wear a shirt that shows her bellybutton. 

B. The manufacturers of a line of aromatherapy candles markets them at very exclusive stores. 

C. When Arne went to the store to buy a new dress for Easter, she decided not to buy anything because of the crowded conditions of the store.

D. Billie purchased a pair of Honey brand clogs instead of the Birkenstocks she wanted because the Birkenstocks were too expensive. 

Question 19 of 20

Which of the following is the most valuable piece of information for determining the social class of your best friend’s parents.

A. How many years of schooling did they have?

B. What is their ethnic background? 

C. What is their combined annual income? 

D. What are their occupations? 

Question 20 of 20

Which of the following statements about social classes in the United States is true?

A. The middle class is the largest class. 

B. Less than five percent of the population in the U.S. belongs to the upper class. 

C. The working class is defined as “family folk” who depend heavily on relatives for economic and emotional support. 

D. The middle class is the group most likely to demand instant gratification. 

Part 2

Question 1 of 20

__________ consist of businesses that buy goods and services in order to produce other goods and services for sale.

A. Government organizations 

B. Organizational buyers 

C. Nonprofit associations 

D. Trade associations 

Question 2 of 20

__________, or resellers, purchase to resell at a profit.

A. Initiators 

B. Marketing intermediaries 

C. Users 

D. Influencers 

Question 3 of 20

Which of the following examples would most likely use straight rebuy?

A. Contractors looking for a replacement for stucco for homebuilding buy autoclaved, aerated concrete panels. 

B. A physicians’ office buys a $35,000 endoscope for examining their patients lungs. 

C. A manufacturer of off-the-road vehicles practices just-in-time inventory and needs to arrange for the purchase of additional electric starters. 

D. A cold-storage warehouse buys a $100,000 generator to keep its 200,000 square feet of storage area cold in the event of an electric outage. 

Question 4 of 20

Which of the following is the best example of a modified rebuy?

A. A contractor buys shingles for the roof of the 15th house he is building in Tara Woods subdivision. 

B. The production manager for a meat processing plant is buying a $90,000 high-tech meat slicing machine that will save the company an estimated $20,000 annually in wastage. 

C. The supermarket buys 24 replacement plastic pallets for storing food. 

D. The purchasing department at a university makes a buying decision about its long distance telephone service provider. 

Question 5 of 20

Which of the following is the best example of a new task purchase?

A. A dentist who has been in practice for 10 years buys a replacement dental chair just like the old one. 

B. The office manager for several lawyers signs the firm up with an Internet service provider. 

C. A Dallas-based hotel chain with 120 hotels and resorts spends $1.6 million to protect itself from computer viruses. 

D. A department store upgrades its security system by installing a second video camera at the employees’ entrance to the store. 

Question 6 of 20

Which of the following statements correctly describes the difference between how organizational buyers make purchases and how final consumers make their purchases?

A. There is a greater emphasis on personal selling to organizational buyers than to final consumers. 

B. Organizational buyers are more geographically dispersed than final consumers. 

C. The buyer-seller relationships have fewer permutations in the consumer market than in business-to-business marketing. 

D. The distribution channel for final consumers is shorter than for organizational buyers. 

Question 7 of 20

A privately owned, small company with technology or production orientation will tend towards __________ decision making.

A. autonomous

B. joint decision 

C. distributed 

D. centralized 

Question 8 of 20

Sole sourcing is advantageous to suppliers because it provides them with predictable and profitable demand and allows them:

A. to market the products with their brand names. 

B. to build long-term relationship with organizations. 

C. to look at the advantages and disadvantages of the organization. 

D. to deliver the products on time. 

Question 9 of 20

Organizations can be divided into three groups based on differences in degree of employee commitment. These groups include:

A. advertising, marketing, and finance. 

B. HR, sales, and engineering. 

C. innovative, adaptive, and lethargic firms. 

D. planning, executing, and accomplishing tasks. 

Question 10 of 20

__________ is the process by which buyers rate each potential supplier on various performance measures, such as product quality, on-time delivery, price, payment terms, and use of modern technology.

A. Quantity research 

B. New task purchases 

C. Priori segmentation 

D. Vendor analysis 

Question 11 of 20

Deciding how to segment a market prior to conducting marketing research is commonly referred to as __________ segmentation.

A. a priori 

B. post-hoc 

C. selective 

D. autocratic 

Question 12 of 20

Which of the following statements about market segmentation is true?

A. Market segmentation is not needed if the organization plans to adopt a mass marketing strategy. 

B. Market segmentation analysis precedes product positioning, the cornerstone of sound marketing planning. 

C. The logic of market segmentation is quite simple and is based on the idea that a single product item can seldom meet the needs and wants of all consumers. 

D. According to the model of market segmentation analysis, the marketing process begins with the determination of consumer needs and wants. 

Question 13 of 20

At a strategic level consumer needs and wants are translated into:

A. customer needs. 

B. marketing needs. 

C. primary data. 

D. operational concepts. 

Question 14 of 20

Real world segmentation has followed one of two general patterns, a priori segmentation approach and a __________ approach.

A. post hoc segmentation 

B. market segmentation 

C. benefit segmentation 

D. psychographic segmentation 

Question 15 of 20

To delineate its current situation a company should conduct a:

A. priori analysis. 

B. mix contingency plans. 

C. SWOT analysis. 

D. marketing survey. 

Question 16 of 20

What are the two most commonly used approaches for segmenting markets?

A. Benefit segmenting and psychographic segmentation 

B. Advertising segmentation and financial segmentation 

C. Nonprofit and profit segmentation 

D. Marketing segmentation and geodemographic segmentation 

Question 17 of 20

Benefit segmentation attempts to measure consumer value systems and:

A. benefits for a firm. 

B. consumer loyalty. 

C. consumer perceptions. 

D. consumer locations. 

Question 18 of 20

What does psychographic segmentation focus on?

A. Qualitative research 

B. Quantitative research 

C. Test market 

D. Consumer lifestyles 

Question 19 of 20

What does the term “horizontal dimension” refer to?

A. Cross-functional teams 

B. Sales promotions 

C. After-sale services 

D. Primary motivations 

Question 20 of 20

What does geodemographic segmentation identify?

A. Marketing ideas 

B. Specific households in a market by focusing on local neighborhood geography to create classifications of actual, addressable, mapable neighborhoods where people live and shop 

C. The height of mountains 

D. Marketing strategies that are used to make decisions for future profits for the company 

Part 3

Question 1 of 20

A product is the sum of the physical, psychological, and __________ satisfactions the buyer derives from purchase, ownership, and consumption.

A. physical 

B. sociological 

C. cognitive 

D. personal 

Question 2 of 20

Convenience goods, shopping goods, and specialty goods are the three classes of:

A. dual branding. 

B. lethargic organization. 

C. organizational goods. 

D. consumer goods. 

Question 3 of 20

For certain products there are a limited number of buyers; this is known as a(n):

A. generic product. 

B. horizontal market. 

C. vertical market. 

D. extended product. 

Question 4 of 20

Which of the following is the best example of a shopping good?

A. A home security system 

B. A bottle of Snapple pink lemonade 

C. A pair of fingernail clippers 

D. A truckload of bricks 

Question 5 of 20

What does it mean when you say the market for a box of impact eye goggles is horizontal?

A. It means the market is deep. 

B. It means the market is restricted to just a few industries. 

C. It means the market has numerous middlemen. 

D. It means the market is anyone that needs eye products. 

Question 6 of 20

In a technical sense, quality can refer to physical traits such as features, performance, reliability, durability, aesthetics, serviceability, and __________ specifications.

A. buyer derives to 

B. conformance to 

C. conjunction with 

D. acceptance of 

Question 7 of 20

__________ refers to what the customer receives in exchange for what the customer gives.

A. Quality 

B. Product mix 

C. Value 

D. Line extension 

Question 8 of 20

What is the legal term for a product or service brand?

A. Symbol 

B. Style

C. Trademark 

D. Quality 

Question 9 of 20

What does the line extension approach use?

A. Symbol 

B. Brand name to facilitate entry into a new market product 

C. An expansion of business links 

D. Large-volume production runs 

Question 10 of 20

A product audit by a cereal manufacturer would:

A. categorize the cereals produced within its industry as to product similarities and differences. 

B. determine if the company should delete its Spider-Man brand cereal. 

C. analyze the sales levels of all cereals in its competitive environment.

D. determine the competitive advantage of each brand of cereal in the market. 

Question 11 of 20

Marketing dimensions refer to price, promotion, strategy, and:

A. channels of distribution. 

B. product features. 

C. launch offers. 

D. competitive environments. 

Question 12 of 20

A broader approach to the new product question is the one developed by H. Igor Ansoff in the form of:

A. corporate marketing. 

B. marketing mix. 

C. growth vectors. 

D. benchmarking. 

Question 13 of 20

The primary reason for new product failure is the inability of the selling company to match its offering to the:

A. needs of the customers. 

B. required competition. 

C. prevailing price. 

D. product development cycle. 

Question 14 of 20

Products that are inventions are known as:

A. new-to-the-world products.

B. new category entry. 

C. an addition to product line. 

D. a product improvement. 

Question 15 of 20

Avon first marketed its Skin So Soft lotion as a body lotion so it would have a product to compete with other similar body lotions. Today, Avon promotes its Skin So Soft lotion as an insect repellant that is good to your skin. In which of the new product categories would Skin So Soft lotion fall?

A. New-to-the-world product 

B. New category entry 

C. An addition to product line 

D. Repositioning 

Question 16 of 20

__________ denotes a growth direction through the increase in market share for present product markets.

A. “Market penetration” 

B. “Marketing mix” 

C. “Growth vectors” 

D. “Market development” 

Question 17 of 20

What does out-rotating involve?

A. That salesmen should be exchanged with competing firms from time to time 

B. That managers and salesmen should exchange jobs periodically 

C. That employees should be placed in positions that require direct contact with customers, competitors, and other key outside groups 

D. That new product ideas should be brought in from outside the firm 

Question 18 of 20

Strategic risk involves:

A. putting out money to advertise new ideas. 

B. not matching the role or purpose of a new product with a specific strategic need or issue of the organization. 

C. the use of new technology to produce the product at a profit. 

D. the cost of testing concepts.

Question 19 of 20

A strategic alliance is best defined as:

A. a short-term relationship aimed at winning a market segment. 

B. a relationship between a business and its customers. 

C. a long-term partnership between two organizations designed to accomplish the strategic goals of both parties. 

D. a relationship between a business and the community in which it is headquartered. 

Question 20 of 20

Various alternatives exist for creating and managing cross-functional product development teams. Two of the better-known methods are the establishment of skunkworks and the __________ approach.

A. rugby 

B. iceberg 

C. idea equity 

D. tag team 

Part 4

Question 1 of 20

A major way marketers create positive and distinct images is through:

A. marketing plans. 

B. hiring marketing personnel. 

C. marketing communications. 

D. funding charities. 

Question 2 of 20

An important goal of marketing communications is to build a relationship with the organization’s:

A. employees. 

B. technological team. 

C. channel members. 

D. research and development channel.

Question 3 of 20

__________ is an activity or material that offers customers, sales personnel, or resellers a direct inducement for purchasing a product.

A. Sales promotion 

B. Promoting a company 

C. Selling goods

D. None of the above 

Question 4 of 20

A nonpaid form of nonpersonal communication about the organization and its products that is transmitted through a mass medium in the form of a news story is referred to as:

A. advertising. 

B. newsletters.

C. publicity. 

D. None of the above 

Question 5 of 20

Why would the manufacturer of a $390 video home security system be reluctant to use advertising as its sole promotional tool?

A. The manufacturer would have little control over the promotional message. 

B. Advertising is an ineffective way to create a product or brand image.

C. The advertising message can be targeted to an individual. 

D. Advertising reaches many people who are not potential buyers. 

Question 6 of 20

The specialist viewpoint is represented by advertising experts who are primarily concerned with measuring the effects of:

A. specific ads or campaigns. 

B. the economical status. 

C. the research approach. 

D. the percent of sales approach 

Question 7 of 20

What are the objectives for advertising?

A. Specific ads or campaigns 

B. Creating awareness, aiding comprehension, developing conviction, and encouraging ordering 

C. Implement marketing plans 

D. None of the above 

Question 8 of 20

The ultimate objective of the business advertiser is to make:

A. people aware of the company. 

B. sales and profit. 

C. informed guesses about how to manipulate buyers. 

D. None of the above 

Question 9 of 20

The __________ method attempts to determine retail price by using product costs as a base.

A. per-unit expenditure 

B. purchase pricing 

C. percentage-of-sales 

D. all-you-can-afford 

Question 10 of 20

Well-planned advertising programs usually make use of the __________ approach.

A. marketing 

B. financial 

C. task 

D. None of the above 

Question 11 of 20

__________ are in the best position to act as the intermediaries through whom valuable information can be passed back and forth between buyers and producers.

A. Marketing managers

B. Customers 

C. Advertisers 

D. Salespeople 

Question 12 of 20

The process of locating potential customers is called:

A. database building. 

B. planning sales calls. 

C. pre-selling. 

D. prospecting.

Question 13 of 20

Which of the following is a salesperson’s best source of prospects?

A. Trade shows

B. Referrals from satisfied customers 

C. Canvassing 

D. Centers of influence

Question 14 of 20

Which of the following statements about objections during a sales presentation is true?

A. Objections are typically trivial, and best handled by ignoring them. 

B. Objections can arise at any time during the sales presentation. 

C. A good salesperson allows objections to be raised only when the sales presentation is concluded. 

D. In handling an objection, a salesperson should be willing to challenge the prospect’s opinion and experience. 

Question 15 of 20

In response to an objection, the salesperson should __________ the customer.

A. not immediately challenge 

B. thank 

C. listen passively to 

D. actively challenge 

Question 16 of 20

The concept of __________ focuses the organization’s attention on providing continuing satisfaction and reinforcement to individuals or organizations that are past or current customers.

A. premarketing 

B. advertising 

C. aftermarketing 

D. warranting 

Question 17 of 20

__________ are (is) used in certain industries such as pharmaceuticals to focus solely on promotion of existing products and introduction of new products.

A. Missionary salespeople 

B. Technical sales specialists 

C. More flexibility in decision making 

D. Information provision 

Question 18 of 20

When the product is extremely high-priced and is being sold to the whole organization, __________ are often used.

A. missionary salespeople 

B. technical sales specialists 

C. cross-functional sales teams 

D. task approaches 

Question 19 of 20

Most companies organize their sales effort either by:

A. salespeople or direct selling.

B. marketers or advertisers. 

C. geography, product, or customers. 

D. developing convictions or innovative ideas. 

Question 20 of 20

The __________ approach involves measuring the relationship between the dependent variable, sales, and one independent variable that can explain increases or decreases in sales volume.

A. jury of executive opinion method 

B. sales force composite method 

C. time-series analysis 

D. correlation analysis 

Part 5

Question 1 of 20

Major functions performed in the channels of distribution include middlemen, merchant middlemen, and:

A. employees. 

B. employers. 

C. agents. 

D. organizations. 

Question 2 of 20

Channels with one or more intermediaries are referred to as:

A. administered systems. 

B. direct channels. 

C. indirect channels. 

D. responsive channels. 

Question 3 of 20

The choice of channels can be defined in terms of intensive distribution, selective distribution, and __________ distribution.

A. marketing 

B. sales

C. exclusive 

D. product 

Question 4 of 20

In __________ distribution, the manufacturer limits the use of intermediaries to the ones believed to be the best available in the geographic area.

A. exclusive 

B. geodemographic 

C. wholesale 

D. selective 

Question 5 of 20

The major distribution costs to be minimized are transportation, order processing, and:

A. horizontal dimension. 

B. vertical dimension. 

C. packaging. 

D. geodemographic. 

Question 6 of 20

It is well-documented in the marketing literature that __________ throughout the channel often lead to high-quality products and low price.

A. discord 

B. competition 

C. long-term relationships 

D. collusion 

Question 7 of 20

Administered vertical marketing systems are most similar to:

A. internal market mechanisms. 

B. conventional channels. 

C. selective distribution. 

D. horizontal channels. 

Question 8 of 20

__________ are merchants that are primarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities.

A. Retailers 

B. Logistics companies 

C. Wholesalers 

D. Vendors 

Question 9 of 20

For which of the following products would its manufacturer be more likely to use intensive distribution?

A. Blue jeans 

B. Laser printer

C. Gourmet cat food 

D. Can of soda 

Question 10 of 20

A contractual vertical marketing system:

A. is exemplified by a florist shop that buys a wholesale plant nursery. 

B. is very similar to a conventional marketing channel of distribution. 

C. operates with a channel leader. 

D. is exemplified by the Subway sandwich shop franchise system. 

Question 11 of 20

The __________ factors that are particularly important for pricing decisions are: expected consumption rate of potential buyers, location of potential buyers, and position of potential buyers.

A. economic 

B. political 

C. demographic 

D. sociological 

Question 12 of 20

Price elasticity is a measure of consumer’s price sensitivity, which is estimated by dividing relative changes in the quantity sold by the:

A. volume consumed. 

B. cost of the product or service. 

C. quantity produced. 

D. relative changes in price. 

Question 13 of 20

Two factors that relate to the supply influences on pricing decisions are:

A. intangibility and perishability. 

B. rate-of-return and inventory levels. 

C. perishability and tangibility. 

D. cost and nature of the product. 

Question 14 of 20

The basic variations in cost-oriented pricing are mark-up pricing, cost-plus pricing, and:

A. fixed pricing.

B. demand oriented pricing. 

C. rate-of-return pricing. 

D. additional profits. 

Question 15 of 20

The pricing strategy in which the seller charges a relatively high price on a new product is called:

A. price fixing. 

B. deceptive pricing. 

C. price discrimination. 

D. skimming. 

Question 16 of 20

The pricing strategy in which the seller charges a relatively low price on a new product is called:

A. development. 

B. traditional marketing. 

C. penetration.

D. skimming. 

Question 17 of 20

Pricing a product at competition is called __________ pricing and is popular for homogeneous products, since this approach represents the collective wisdom of the industry and is not disruptive of industry harmony.

A. sealed-bid 

B. competitor 

C. open 

D. going-rate 

Question 18 of 20

Price-fixing is illegal per se. Sellers must not make any agreements with competitors or distributors concerning the final price of the goods. The __________ is the primary device used to outlaw horizontal price-fixing.

A. Sherman Antitrust Act 

B. Robinson-Patman Act 

C. Clayton Act 

D. Federal Trade Commission Act 

Question 19 of 20

Setting prices so that targeted customers will perceive products to offer greater value than competitive offerings is called:

A. comprehension of service marketing. 

B. value pricing. 

C. mass merchandising.

D. perishability pricing. 

Question 20 of 20

It is not uncommon for the manufacturer of a new product to have to pay a retailer $30,000 in order to get the shelf space needed to sell its new product in a particular retail establishment. This $30,000 fee is an example of a(n):

A. slotting allowance. 

B. bribe. 

C. placement fee. 

D. opportunity fee. 

Part 6

Question 1 of 20

Which of the following statements about the service sector of the American economy is true?

A. Over the next two decades the service sector in the U.S. will decline in monetary importance. 

B. The service sector accounts for fewer than 30 percent of all jobs in the U.S. 

C. Spending in the service sector today captures almost 20 cents of every consumer dollar. 

D. The service sector in the U.S. produces a balance-of-trade surplus annually. 

Question 2 of 20

Which of the following is the BEST example of a service product?

A. Your motel stay 

B. Permission from the hotel to pay for your stay with a credit card 

C. The toll-free number you call to check on your motel reservation 

D. The delivery of your luggage to the motel room 

Question 3 of 20

Which of the following is the BEST example of a service?

A. Surgery to correct nearsightedness 

B. The complementary newspaper left outside your hotel room door 

C. A transcontinental airplane trip 

D. Repairs made to your lawn mower 

Question 4 of 20

During Jack and Leah’s first visit to the marriage counselor, Jack inspected all of the diplomas and certificates the counselor had prominently displayed on her wall. The most likely reason why the counselor displayed her diplomas and certificates was to:

A. comply with government regulation.

B. provide tangible evidence of her ability to perform the service required. 

C. reduce the probability of fluctuating demand. 

D. differentiate her counseling service from all other services. 

Question 5 of 20

The promotional element of the traditional marketing mix is more important for services than it is for goods because services are:

A. homogeneous. 

B. inventoried. 

C. intangible. 

D. simultaneously demanded and supplied. 

Question 6 of 20

Services that are __________, and markets for these services, fluctuate by season, days, or time of day.

A. tangible 

B. intangible 

C. perishable 

D. insufficient 

Question 7 of 20

Tangibles include:

A. perishable goods. 

B. the physical evidence of the services. 

C. cyclical stability. 

D. demographic factors. 

Question 8 of 20

Off-peak pricing:

A. is used to overcome problems associated with the homogeneity of services.

B. is a strategy used to deal with fluctuating demand for services. 

C. creates time, place, and form utility. 

D. is used to separate the service provider from the service. 

Question 9 of 20

If you were asked to distinguish between a service and a good, you could correctly say:

A. the customer is the end user for services, and the co-producer for goods. 

B. collaboration between buyer and seller is highest for goods. 

C. a greater number of brands of services are available than brands of goods. 

D. the customer owns a good, but owns the memory of a service. 

Question 10 of 20

Which of the following statements about products and services is true?

A. Collaboration is higher between the buyer and seller of a product, than between the buyer and seller of a service. 

B. The goal of producing a service is uniqueness; the goal of producing a product is uniformity. 

C. Quality control activities for both services and products compare expectations to experience. 

D. With both products and services, the consumer is the end user and not involved in the production process. 

Question 11 of 20

Which of the following is an example of a defensive strategic goal that might be used to explain why MTV developed MTV European, a pan-European cable and satellite system that transmits music-based programming across the continent?

A. To maximize its total sales revenues 

B. To improve its overall market position 

C. To increase its long-term growth and profit prospects 

D. To preempt competitors’ global moves 

Question 12 of 20

There is a small, but growing, market for golfing equipment in China. Which of the following is an example of a defensive strategic goal that can be used to explain why American manufacturers of golfing equipment like Wilson and Titleist are eager to export their products to the Chinese?

A. To improve overall market position 

B. To increase long-term growth and profit prospects 

C. To avoid being locked out of markets by arriving too late 

D. To take advantage of economies of scale 

Question 13 of 20

ExxonMobile opened its first On the Run store in Chile. The store combines the familiar pumping islands out front, convenience stores, and separate food courts. The success of that store led to the opening of more than 300 On the Run stores worldwide. Which of the following is an example of an offensive strategic goal that can explain why ExxonMobil developed On the Run stores?

A. To increase long-term growth and profit prospects 

B. To take advantage of significant differences in operating costs between countries 

C. To preempt competitors from opening similar stores

D. To avoid being locked out of markets by arriving too late 

Question 14 of 20

Which of the following is an example of an offensive strategic goal that might be used to explain why Eastman Kodak is eager to expand into new international markets?

A. To preempt its competitors’ global moves 

B. To increase its long-term growth and profit prospects 

C. To compete with foreign companies on their own turf instead of in the United States 

D. To take advantage of significant differences in operating costs in other countries 

Question 15 of 20

When Procter & Gamble introduced Pampers disposable diapers in Japan, it used basically the same pricing strategy as it used in the United States. P&G did not realize the typical Japanese mother changes her baby about 14 times a day – twice as often as her U.S. counterpart. Thus, Pampers were too expensive for the Japanese market. What kind of a problem did P&G experience when it introduced Pampers?

A. Cultural misunderstanding 

B. Communications divergence

C. Too heavy an emphasis on penetration pricing 

D. Promotional dichotomy 

Question 16 of 20

Which of the following describes a problem a company can experience when entering a foreign market?

A. Cultural misunderstandings 

B. Import restrictions 

C. Political uncertainty 

D. All of the above 

Question 17 of 20

Exchange controls are usually used by:

A. companies that are intermittent exporters. 

B. industries that are selling commodities. 

C. nations with a strong service sector. 

D. nations that are experiencing balance-of-payment problems. 

Question 18 of 20

__________ companies pursue different strategies in each of their foreign markets. They could have as many different product variations, brand names, and advertising campaigns as countries in which they operate.

A. Multidomestic 

B. Transnational 

C. Global 

D. Ethnocentric

Question 19 of 20

Breath Right nasal strips are adhesive pads with a small spring inside that, when attached to the nose, pull the nasal passages open and make it easier to breathe. Their manufacturer, CNS, Inc., sells the nasal strips to countries on four different continents by using standardized marketing activities. CNS, Inc., is an example of a(n) __________ company.

A. multidomestic 

B. transnational 

C. global 

D. ethnocentric

Question 20 of 20

How does the multidomestic corporation differ from the global corporation?

A. The multidomestic companies rely on management teams made up of nationals; global corporations use management teams from the home office. 

B. Multidomestic companies are highly centralized, while global corporations are highly decentralized. 

C. Multidomestic companies use a standardized marketing strategy; globalized companies use an adaptive marketing strategy. 

D. Multidomestic companies pursue different strategies in each of their foreign markets; globalized companies use the same strategy regardless of boundaries.