Marketing seeks to create and manage profitable customer relationships by delivering _____ to

customers.

competitive prices

superior value

superior service

superior promotion

At work, customers decide to satisfy needs and wants through exchange. What occurs at this
point?

selling

customer service

marketing

transaction marketing

One of the following is the call of the Information Age where the customer asks:

“This is what I want, will you make it safer?”

“This is what I want, won’t you please make it?”

“Can you make it safer and sell it cheaper?”

“This is what I want, can you provide more options?”

A tremendous advantage of modern communication and advertising tools is that marketers can
zero in on selected customers with carefully _____.

selected customer profiles

customized products

flexible pricing ranges

selected targeted messages

Modern companies are improving their customer knowledge and customer _____(satisfaction).

appreciation
awareness

connections

none of the above

Disney has been successful in selecting an overall company strategy for long-run survival and
growth called _____.

a. tactical planning

b. strategic planning

c. futuristic planning

d. relationship marketing

Paul Pierce is busy working with other managers evaluating the products and businesses making
up their company. Paul is engaged in _____.

a. strategic business unit analysis

b. preparing a business portfolio

c. portfolio analysis

d. marketing planning

A common practice among marketers is to identify and develop new markets for their existing
products. This practice is called _____.

a. market development

b. product development

c. market penetration

d. market skimming

TelStar Plastics is in the process of dividing a market into distinct groups of buyers with different
needs, characteristics, or behavior who might require separate products or marketing programs.
What is this firm doing?

a. market development

b. market diversification

c. market penetration
d. market segmentation

A marketing audit covers which of the following areas of a business?

a. marketing department

b. sales department

c. advertising department

d. all areas

Under Schwab’s two-tiered system, customers had to be either online or offline. What was not a
result of this system?

Customers continued to place orders over the phone.

Phone customers had to pay twice the commissions.

Customers became confused.

The two-tiered system was a failure.

The new model will fundamentally change customers’ notions of convenience, speed, price,
product information, and service. This new consumer thinking will affect _____.

a few businesses

every business

established businesses

starting up businesses

The Internet gave birth to a new species of e-markets, _____ that operate only online.

brick-and-mortar companies

click-and-mortar companies

Old Economy

the click-only dot-coms

s of e-commerce envision a time when the Internet will replace all but which of the following.

magazines

newspapers

stores

food markets

A recent study found that more than one out of three messages that hit e-mail inboxes are _____.

a. effective

b. failures

c. unwanted

d. too lengthy

The most commercially influential demographic group in history is _____.

a. generation X

b. baby boomers

c. generation Y

d. seniors

A company’s marketing environment includes various _____, which consists of any group that
has an actual or potential interest in or impact on an organization’s ability to achieve its
objectives.

a. teams

b. audiences

c. markets

d. publics

_____ households are now growing faster than _____ households.

a. Traditional; nontraditional

b. Large; traditional

c. Nontraditional; smaller

d. Nontraditional; traditional

The primary concern with the boom in e-commerce and Internet marketing is _____.

a. pornography

b. ripoffs

c. privacy

d. ethics

Firms that take an environmental management perspective will hire ____ to influence legislation
affecting their industries to their advantage.

a. mediators

b. lobbyists

c. negotiators

d. politicians

What went wrong with Coke in 1985?

a. Management defined its marketing research problem too narrowly.

b. The research looked only at taste and not feeling about dropping the old Coke.

c. No account of intangibles was taken.

d. All of the above

Patti Lovelace is making a presentation to the owners of her company. She is trying to convince
them to conduct some current marketing research. Which of the following would she not
emphasize as a benefit or selling point?

a. assess market potential and market share

b. understand customer satisfaction and purchase behavior

c. measure the effectiveness of pricing and accounting

d. measure the effectiveness of distribution and promotion activities

Survey research, called the backbone of primary research, is the most widely used method for
primary data collection and is best suited for gathering _____ information.

a. personal

b. preference

c. attitude

d. descriptive

Small organizations can obtain most of this type of data available to large businesses with
minimal effort. What type is it?

a. census

b. Internet

c. secondary

d. primary

Recognizing that surveys can be abused, several research associations have developed _____
and _____.

a. research conduct; standards of ethics

b. research ethics; standards of conduct

c. safeguards; public policy

d. research ethics; safeguards

The average Harley customer is _____.

a. the Hell’s Angels crowd

b. a young adult in his or her 20s

c. a teenager

d. a 46-year-old husband with a median household income

What is one thing that Wal-Mart does not do to cater to the Asian market in one Seattle store?

a. Wal-Mart stocks a large selection of CDs from Asian artists.

b. Wal-Mart stocks videos from Asian artists.

c. Wal-Mart stocks Asian-favored health and beauty products.

d. Wal-Mart puts out white bows because Asians think it is a lucky color.

All of the following make up a person’s lifestyle except _____.

a. AIO dimensions

b. interests

c. dissonance-reducing buying behavior

d. opinions

If the experience is rewarding, she will probably use the camera more and more. Her response to
cameras will be _____.

a. a learning experience

b. a belief

c. reinforced

d. a dissonance experience

Relative advantage, compatibility, complexity, divisibility, and communicability are characteristics

of _____.

a. alternative evaluation

b. dissonance-reducing buying behavior

c. influence of product on rate of adoption

d. habitual buying behavior

Business buyers tend to be more rational and _____ than consumer buyers.

a. orderly
b. objective

c. subjective

d. team-oriented

What is the decision-making unit of a buying organization called today?

a. buying committee

b. buying center

c. buying team

d. lone ranger

What must the marketer to governments need to know?

a. who the key decision makers are

b. identify the factors that affect buyer behavior

c. understand the buying process

d. all of the above

Almost all of the government organizations maintain Internet sites offering up-to-date _____ and
_____.

a. advice; agency data

b. information; advice

c. addresses; phone numbers

d. information; contact persons

After reading a trade publication at work, you as chief purchasing agent at TideWell Electronics,
have discovered that the largest market in the United States is the _____ market.

a. consumer

b. institution

c. business

d. government
Why does Proctor & Gamble offer products that compete with one another on the same
supermarket shelves?

a. Different people want a greater selection/more choices.

b. Different people want different mixes of benefits from the products they buy.

c. P&G has little competition.

d. Retailers request it.

Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users,
and regular users of a product. This method of segmentation is called _____.

a. user status

b. usage rate

c. benefit

d. behavioral

Under what circumstances can local marketing be quite effective?

a. when pronounced regional differences in demographics and lifestyles are present

b. when pronounced local differences in demographics and lifestyles are present

c. when pronounced regional and local differences in demographics and lifestyles are present

d. when regional and local differences in demographics and lifestyles are similar

Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company
positioning and brand positioning in a formal way. Superior’s management would use a _____.

a. mission statement

b. vision statement

c. position statement

d. positioning statement

Once it has chosen a position, a company must take strong steps to deliver and communicate the
desired position to target consumers. Locate the step below that is not correct.
a. The company’s marketing mix efforts must support the positioning strategy.

b. Positioning the company calls for concrete action, not just talk.

c. Designing the marketing mix involves working out the strategic details of the positioning
strategy.

d. Its service personnel, retailers, and advertising messages must match correctly.

If you are looking for enlightenment in all the wrong places, _____ companies are eager to help.
Feeling good is the new religion. These companies are the newest of the new prophets, turning
the old notion of hope in a jar on its head.

a. auto

b. cosmetics

c. toy

d. food

_____ are those products purchased for further processing or for use in conducting a business.

a. Unsought products

b. Specialty products

c. Shopping products

d. Industrial products

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

a. Brand extension

b. Brand equity

c. Co-branding

d. Internal marketing

_____ means that services cannot be separated from their providers, whether the providers are
people or machines.
e. Service intangibility

f. Service inseparability

g. Service variability

h. Service perishability

_____ means that the service firm must effectively train and motivate its customer-contact
employees and supporting service people to work as a team to provide customer satisfaction.

a. Service inseparability

b. Service intangibility

c. Service variability

d. Internal marketing

Every product seems to go through a life-cycle. Which of the following is not

a major challenge presented by the PLC?

a. All products eventually decline.

b. A firm must be good at developing new products to replace aging

ones.

c. The firm must be good at adapting its marketing strategies.

d. It is difficult to plot the stages as a product goes through the stages

With what groups do firms conduct concept testing for new products?

a. suppliers

b. employees

c. target consumers

d. focus groups
Companies use simulated test markets to test new products in a simulated _____ environment.

a. e-commerce

b. shopping

c. trial use

d. competition-free

It’s What’s Hip, a chain of 18 music and CD stores, has discovered that carrying a weak product
during the decline stage of the PLC can be very costly to a firm, and not just in profit terms.
Which one of these is not likely to be one of those costs?

a. take up much of management’s time

b. frequent price and inventory adjustments

c. requires advertising and sales force attention

d. few concerns about company image and other products

In general, which choice would a company make toward declining products?

a. maintain or harvest them

b. harvest or drop them

c. maintain, harvest, or drop them

d. maintain or drop them

The price of an executive is a _____, the price of a salesperson is a _____, and the price of a
worker is a _____.

commission; wage; salary

wage; commission; salary

salary; wage; commission

salary; commission; wage

_____ are the sum of the _____ and _____ for any given level of production.

a. Fixed costs; variable; total costs

b. Fixed costs; total; variable costs

c. Variable costs; fixed; total costs

d. Total costs; fixed; variable costs

_____ is a company’s power to maintain or even raise prices without losing market share.

a. Variable cost

b. Pricing power

c. Target cost

d. Fixed cost

Using _____, a company bases its price on how it thinks competitors will price rather than on its
own costs or on the demand.

a. sealed-bid pricing

b. cost-plus pricing

c. dynamic pricing

d. market share leadership

The more _____ the demand, the higher the company can set its price.

a. elastic

b. external

c. internal

d. inelastic

A company sets not a single price, but rather a _____ that covers different items in

its line that change over time as products move through their life cycles.

a. pricing range

b. pricing structure

c. pricing loop
d. pricing cycle

What will by-product pricing allow a seller to do? Keep in mind that the seller must sell the by-
products at a price that covers more than the cost of storing and delivering them.

a. increase the main product’s price

b. make extra profit

c. reduce the main product’s price

d. none of the above

Meldanado Equipment Company charges all customers within a given

geographical area a single total price—the more distant the area, the higher the

price. What is it called?

a. geographical

b. zone

c. uniform-delivered

d. FOB-origin

To prevent profit loss in the short run due to a forced price cut, a company might

employ one of these strategies. Which one?

a. increase the product quality

b. reduce standard services

c. increase marketing communications

e. reduce the workforce

The most common complaint about abuse of scanner-based computer checkouts is _____.

a. failure to provide the correct price

b. overcharging customers

c. wasting time in line arguing about prices

d. none of the above

Caterpillar Company charges premium prices for its heavy equipment. It is successful because
_____.

a. the equipment is high quality

b. its distribution is unparalleled

c. its customer support system is strong

d. both a and b

Distribution channel decisions often involve _____ with other firms.

a. short-term commitments

b. long-term commitments

c. major problems

d. financial losses

The most common type of hybrid marketing channel is the _____.

a. dual distribution system

b. multichannel distribution system

c. administered franchise

d. horizontal multichannel system

The difference between distribution centers and storage warehouses is that the

former are designed to _____.

a. store goods for longer periods

b. hold larger volumes

 c. move goods rather than just store them

d. none of the above

Companies use third-party logistics providers for all of the following reasons except one. Which
do you think it is?

a. It is more efficient to use them in many cases.

b. They can perform the services at less cost.

c. The company is free to focus more on its core business.

d. ICC and the federal government are beginning to mandate and regulate

some industries.

_____ cofounder Bernie Marcus made this statement of his company. “All of our people
understand what the Holy Grail is. It’s not the bottom line. It’s an almost blind, passionate
commitment to taking care of customers.”

a. Wal-Mart’s

b. Target’s

c. Home Depot’s

d. Kroger’s

_____ are sometimes several stores grouped together where dozens of stores offer prices as low
as 50 percent below retail on a wide range of items.

a. Independent off-price retailers

b. Factory outlets

c. Specialty stores

d. Superstores

_____ may include in-store demonstrations, displays, contests, and visiting celebrities.

a. Franchises

b. Sales promotions

c. Agent promotions
d. None of the above

Wholesalers are always rethinking which _____ count most in building strong customer
relationships and which should be dropped or charged for.

a. products

b. services

c. franchises

d. agents

Because _____ invest little money in their equipment, their materials-handling and order-
processing systems are often outdated.

a. retailers

b. agents

c. wholesalers

d. brokers

_____ has a core value of humility and it finds tremendous strength in the color brown.

a. UPS

b. CEO

c. US Army

d. USPS

How does UPS communicate with customers through the company’s several Web sites?

a. Customers can learn more about UPS’s business-to-business services.

b. Potential clients can browse through success stories of UPS’s Fortune 500 customers.

c. Corporate clients can establish lines of credit.

d. all of the above

A company’s total marketing communications mix consists of a special blend of advertising, sales
promotion, public relations, personal selling, and direct-marketing tools that the company uses to
pursue its advertising and marketing objectives. This is also called _____.

a. direct marketing

b. integrated marketing

c. promotion mix

d. competitive marketing

Short-term incentives to encourage the purchase or sale of a product or service is called_____.

a. direct marketing

b. sales promotion

c. personal selling

d. public relations

Bait-and-switch advertising _____.

a. attracts buyers under false pretenses

b. is unethical

c. is illegal

d. all of the above

Mass-promotion tools include all of the following except _____.

a. advertising

b. sales promotion

c. public relations

d. personal selling

Managers must rely on large _____ along with more quantitative analysis when setting
advertising budgets.
a. optimal investments

b. patronage rewards

c. doses of judgment

d. discounts

Advertisers are increasingly shifting larger portions of their budgets to media that cost less and
target more effectively. All of the following benefit greatly from this shift, except _____.

a. outdoor advertising

b. cable television

c. network television

d. digital satellite television systems

What is not an objective for trade promotions?

a. to get retailers to carry new items and more inventory

b. to get retailers to advertise the product

c. to gain more shelf space

d. to get salespeople to sign up new accounts

_____ use several tools. Some of these are: the news, speeches, and special events.

a. Advertising agencies

b. Advertising specialists

c. Public relations professionals

d. (POP) specialists

Which of the following communication and promotion tools involve direct

connections with customers aimed toward building customer-unique value and lasting
relationships?

a. personal selling

b. direct marketing
c. e-commerce

d. both a and b

Many companies offer their sales forces incentives to perform well. Which one of these is not a
common incentive in the United States?

a. cash

a. trips

b. savings bonds

c. merchandise

Today, most companies still use direct marketing as a _____ for marketing their goods.

a. supplementary channel or medium

b. major marketing mix element

c. compliment to personal selling

d. technique reserved for mature and international markets

Kiosk marketing is primarily used for _____.

a. consumer marketing

b. business marketing

c. consumer and business marketing

d. industrial marketing

What is the common goal that both direct marketers and consumers want?

a. honest marketing efforts

b. well-designed marketing efforts

c. efforts that consumers will appreciate and respond to

d. all of the above

To win in today’s marketplace, companies must become adept not just in _____, but in _____ in
the face of determined competition.
a. managing customer relationships; managing products

b. managing products; managing customer relationships

c. benchmarking; managing products

d. managing products; benchmarking

_____ is the analysis conducted to determine what benefits target customers value and how they
rate the relative value of various competitors’ offers.

a. Customer value analysis

b. Competitive marketing strategies

c. POP promotion

d. Advertising specialty

Few firms can be the best at more than one _____ at the same time. FedEx has achieved this.

a. captive-product pricing

b. value discipline

c. advertising objective

d. promotional intimacy

Why is _____ profitable? The reason is because it ends up knowing the target customer group
so well that it meets their needs better than other firms that casually sell to this same group of
people.

a. prospecting

b. direct-mail marketing

c. niching

d. catalog marketing

Which is not one of the four orientations that companies have moved through over the years?

a. market oriented

b. pay attention to customers

c. (POP) oriented

d. competitor oriented

A Chinese New Year television ad features a dragon in a holiday parade, adorned with red Coke
cans. The spot concludes, “For many centuries, the color red has been the color for good luck
and prosperity. Who are we to argue with ancient wisdom?” This is an example of _____.

a. localized positioning

b. joint venturing

c. product invention

d. straight product extension

Firms that stay at home to play it safe _____.

a. lose their chances to enter other markets

b. risk losing their home markets

c. are far more stable

d. both a and b

Adoption of the Euro will do all of the following except _____.

a. decrease much of the currency risk

b. make countries with previously weak currencies more attractive markets

c. highlight differences in pricing and marketing from country to country

d. create a homogenous market

When economic and political boundaries fall, _____.

a. social and cultural differences will remain

b. local rules will not be a problem

c. social and cultural differences will fall also

d. both b and c
There are three major links between the seller and the final buyer. They are seller’s headquarters
organization, channels between nations, and channels within nations. These make up a _____.

a. whole-channel view

b. direct-distribution channel

c. large-scale channel

d. none of the above

The marketing concept is a philosophy of customer satisfaction and _____.

a. mutual interest

b. mutual gain

c. innovation

d. needs met

A type of economic discrimination in which major chain retailers avoid placing stores in
disadvantaged neighborhoods is called _____.

a. embargo

b. licensing

c. redlining

d. tariff

In the new millennium, social scientists have noted a _____.

a. stronger infatuation with material things

b. stronger need to buy

c. reaction against waste

d. both a and b
While reading the newspaper article about Hainsworth & Sons’ lawsuit, you see that the company
is under question about several marketing decisions it has made. Which of the following is not a
typical marketing decision that might be questioned?

a. selling decisions

b. product decisions

c. price decisions

d. employee decisions

Companies that are able to create _____ in a socially responsible way will have a world to
conquer.

a. the most satisfaction

b. the best promotions

c. new customer value

d. new product