Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) ________ pricing occurs when a seller states prices or price savings that mislead consumers or are
not actually available to consumers.
A) Predatory
B) Psychological
C) Allowance
D) Deceptive
E) Cost-plus

1)

2) Rent, electricity, and executive salaries that do not vary with production level are referred to as
________ costs.
A) target
B) promotional
C) fixed
D) break-even
E) variable

2)

3) ________ uses buyers' perceptions of what a product is worth as the key to pricing.
A) Psychological pricing
B) Target return pricing
C) Cost-plus pricing
D) Customer value-based pricing
E) Competition-based pricing

3)

4) Under ________, the market consists of many buyers and sellers trading over a range of prices
rather than a single market price.
A) a pure monopsony
B) pure competition
C) monopolistic competition
D) a pure monopoly
E) oligopolistic competition

4)

5) What type of pricing is being used when a company temporarily prices its products below the list
price to create buying excitement and urgency?
A) geographical pricing
B) segmented pricing
C) promotional pricing
D) dynamic pricing
E) psychological pricing

5)

6) Which of the following pricing strategies is the opposite of FOB-origin pricing?

A) basing-point pricing
B) dynamic pricing
C) freight-absorption pricing
D) zone pricing
E) uniform-delivered pricing

6)

7) Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman
Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with
its car dealers?
A) direct marketing
B) exclusive dealing
C) horizontal integration
D) vertical integration
E) disintermediation

7)

8) Which of the following is true of a vertical marketing system?

A) It does not give overall power to any one member in the channel.
B) It has one channel member owning all the other channel members or has contracts with all
other channel members.
C) It is formed when a single firm sets up two or more marketing channels to reach one or more
customer segments.
D) It has each channel member acting as a separate business unit trying to maximize its own
profits.
E) It is formed when two or more companies at one level join together to follow a new
marketing opportunity.

8)

9) ________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer
agrees to sell some or all of the rest of its products.
A) Direct marketing
B) Disintermediation
C) Horizontal integration
D) Full-line forcing
E) Horizontal price fixing

9)

10) Which of the following is true of an intensive distribution strategy?

A) It discards traditional intermediaries and uses direct marketing to reach customers.
B) Compared with other distribution strategies, it uses the least number of intermediaries to sell
products.
C) It gives sole rights to select dealers in a given area.
D) Compared with other distribution strategies, it provides the best support for dealers of
luxury products.
E) It strives to make products available where and when consumers want them.

10)

11) TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners
with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe
chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its
outlets. This arrangement will benefit all three companies. What kind of channel arrangement is
being followed in this case?
A) corporate vertical marketing system
B) direct marketing system
C) contractual vertical marketing system
D) administered vertical marketing system
E) horizontal marketing system

11)

12) ________ have filled the ultralow-price, high-volume gap by buying at less-than-regular
wholesale prices and charging consumers less than retail.
A) Specialty stores
B) Off-price retailers
C) Full-service retailers
D) Convenience stores
E) Designer shops

12)

13) Which of the following is true about trends in wholesaling?

A) Value-added customer relationships have been replaced by control systems.
B) New laws prevent wholesalers from having their own retailing operations.
C) Merchant wholesalers are decreasing in number and relevance.
D) The demand for lower prices and higher quality has increased.
E) Bulk breaking is increasingly popular and necessary.

13)

14) Which contractual system is distinguished by the fact that it is normally based on some unique
product or service?
A) voluntary chain
B) corporate chain
C) franchise
D) retailer cooperative
E) warehouse club

14)

15) Which of the following conditions increases the chances of a retailer opting to be categorized as a
self-service retailer?
A) when customers are looking for a narrow product line with a deep assortment
B) when customers are willing to conduct their own locate-compare-select process
C) when the store offers luxury products at highly affordable prices
D) when consumers need warranty information about shopping goods
E) when the store has been converted into a designer shop from a department store

15)

16) Which technique is used by firms to deliver a unified and consistent image about their
organizations and brands to consumers?
A) logistics information management
B) inventory control segmentation
C) integrated marketing communications
D) niche market penetration
E) global marketing management

16)

17) Which of the following is a function of an integrated marketing communications system?

A) allowing suppliers or vendors to manage the inventory of products
B) sharing company forecasting details with shareholders
C) designing products using environmentally friendly techniques
D) controlling production levels by feedback received from customers
E) delivering a consistent message on the product to each brand contact

17)

18) Which of the following is a disadvantage of standardization of advertising messages?

A) It is less responsive to local market needs.
B) It gives rise to inconsistent messages.
C) It gives rise to higher advertising costs.
D) It complicates the advertising process.
E) It tends to suffer from poor coordination.

18)

19) Which of the following is an example of a combination of sales promotions and direct marketing?
A) a company sending an e-mail to a customer about a discount on a product during a holiday
season
B) a company giving discounts on their product prices in order to gain a brand image
C) a company's sales representatives meeting customers directly to present customized offerings
D) a company releasing a nationwide television ad about every buyer having a chance to win a
lottery prize
E) a company holding a press conference to talk about their new product

19)

20) Which consumer promotion tool involves selling two products for the price of one?
A) coupons
B) advertising specialties
C) samples
D) rebates
E) price packs

20)

21) Which of the following is a characteristic of an inside sales force?

A) It travels to make sales calls on customers in the field.
B) It eliminates the need to have an outside sales force.
C) It receives administrative backup from outside sales forces.
D) It conducts business from an office via telephone.
E) It cannot sell or service accounts directly.

21)

22) Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with
every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee
using?
A) samples
B) price packs
C) advertising specialties
D) coupons
E) rebates

22)

23) The process in which printed catalogs, brochures, samples, and DVDs are distributed to customers
using highly selective mailing lists is known as ________.
A) kiosk marketing
B) telemarketing
C) internal marketing
D) mass marketing
E) direct-mail marketing

23)

24) Which of the following is most likely true of branded community Web sites?
A) They provide engaging content.
B) They mostly contain static content.
C) They contain heavy pop-up ads of a firm's products.
D) They offer little information about the brand.
E) They contain interactive selling features.

24)

25) Which of the following direct marketing forms includes infomercials?

A) print-catalog marketing
B) face-to-face marketing
C) outbound telephone marketing
D) direct-response television marketing
E) direct-mail marketing

25)

26) Which of the following statements about break-even analysis is most likely true?
A) It is a tool marketers use to examine the relationship between supply and demand.
B) It is a tool used to calculate fixed costs.
C) It fails to consider customer value and the relationship between price and demand.
D) It is used to determine the maximum price that can be set on a product.
E) It determines how customer-perceived value changes with value-added pricing.

26)

27) When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer
within a specified time period, and the manufacturer sends the customer a check.
A) flash sale
B) promotional allowance
C) cash rebate
D) functional discount
E) quantity discount

27)

28) Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites
proposals from independent dealers who are willing to set up exclusive showrooms that only sell
Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee
national advertising. This is most likely an example of a(n) ________.
A) manufacturer-sponsored retailer franchise system
B) horizontal manufacturing marketing system
C) direct marketing system
D) administered vertical marketing system
E) manufacturer-sponsored wholesaler franchise system

28)

29) ________ distribution gives producers good market coverage with more control and less cost than
does intensive distribution.
A) Selective
B) Comprehensive
C) Inclusive
D) Vertical
E) Horizontal

29)

30) Campbell is one of the oldest retailers in the country. While the service offered at Campbell is
fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and
closeoutsoccasionally including expensive gadgets and jewelry. Posco, a new chain of retail
stores, offers products that are similar to Campbell's offerings; however, Posco is known for
encouraging customers to ask questions and for providing service representatives to assist
customers in the purchasing decision process. From this scenario, which of the following
statements is most likely true?
A) Campbell has not been able to differentiate itself on the basis of product assortment.
B) Both Campbell and Posco fail to identify the needs and wants of target markets.
C) Posco's product assortment helps differentiate it from Campbell.
D) Posco fails to differentiate itself from Campbell through the services mix.
E) Posco better utilizes the services mix to differentiate itself from Campbell.

30)

31) Which of the following media is most suitable for advertising a product that needs to be
demonstrated?
A) billboard
B) magazine
C) newspaper
D) television
E) radio

31)

32) Which of the following statements is true of consumer promotions?

A) They are primarily used to generate business leads and reward customers.
B) They include the use of conventions and trade shows.
C) Their primary objective is to persuade resellers to carry a brand.
D) They include the use of display allowances.
E) They include a wide range of tools like samples, coupons, and refunds.

32)

33) The Children's Online Privacy Protection Act requires online operators targeting children to
________.
A) post privacy policies on their sites
B) educate children about digital technologies
C) collect and store the personal information of parents of these children
D) collect personal information from children under age 13 for security purposes
E) avoid sending e-mails to the parents of children whom they target

33)

34) Combining several products and offering the collection at a reduced price is referred to as
________ pricing.
A) product line
B) product bundle
C) by-product
D) captive-product
E) optional-product

34)

35) ________ involves combining two or more systems of transportation to move products.
A) Disintermediation
B) Vertical transportation
C) Multimodal transportation
D) Vertical integration
E) Just-in-time management

35)

36) According to the text, today's large and progressive wholesalers have successfully reacted to rising
costs by ________.
A) relocating to low-rent, low-tax areas
B) eliminating the need for brokers and agents
C) investing in information technology systems
D) increasing customer service responsibilities
E) reducing promotional and personal selling activities

36)

37) Zephyr Inc., an electronics manufacturer, wants to enter the commercial tracking device market
with its latest product, FindIt. Unlike other tracking devices, FindIt is very small and relatively
cheap, but it can be used only within small areas as it has a low detection-range. Which type of
advertising would be best for FindIt?
A) reminder advertising
B) classified advertising
C) personalized advertising
D) informative advertising
E) comparative advertising

37)

38) A ________ sales-force structure combines several types of sales force organizations.
A) simple
B) market
C) product
D) complex
E) territorial

38)

39) Which of the following is a drawback of using blogs as a marketing medium?

A) It is difficult to use blogs to reach highly targeted audiences.
B) The content of a blog is difficult to control.
C) Advertising on a blog is typically very expensive.
D) A company cannot have more than one blog.
E) Blogs do not provide the kind of personalized medium that today's marketers want.

39)

40) The relationship between the price charged for a product and the resulting demand level can be
shown in a ________.
A) inelastic demand slope
B) break-even chart
C) supply curve
D) demand curve
E) elastic demand slope

40)

Answer Key
Testname: FINAL PREP

1) D
2) C
3) D
4) C
5) C
6) E
7) B
8) B
9) D
10) E
11) E
12) B
13) D
14) C
15) B
16) C
17) E
18) A
19) A
20) E
21) D
22) C
23) E
24) A
25) D
26) C
27) C
28) A
29) A
30) E
31) D
32) E
33) A
34) B
35) C
36) C
37) D
38) D
39) B
40) D