Download Chapter 1—An Overview of Marketing

MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 1
1.The term marketing refers to:
a. new product concepts and improvements
b. selling
c. advertising and promotion activities
d. a philosophy that stresses customer satisfaction
e. planning sales campaigns
ANS: D
PTS: 1
REF: 3
TOP: AACSB Reflective Thinking| TB&E Model Strategy
OBJ: 01-1 TYPE: Def
5. _____ is a key ingredient in the philosophy of marketing; it occurs when people give up something in
order to receive something that they would rather have.
a. Exchange
b. Synergy
c. Transformation
d. Leveraging
e. Reciprocity
ANS: A
PTS: 1
REF: 3-4
TOP: AACSB Reflective Thinking| TB&E Model Product
OBJ: 01-1 TYPE: Def
11. The concept of exchange is important to marketing because:
a. if all the conditions for an exchange are in place, then the exchange will be completed
b. exchange provides money to marketers
c. marketing activities help to create exchange
d. marketing activities are a requirement for exchange to take place
e. money is the only medium of exchange for business marketers
ANS: C
Marketing activities help the exchange to take place, but marketing can occur without an exchange.
PTS: 1
REF: 3-4
OBJ: 01-1 TYPE: Comp
TOP: AACSB Reflective Thinking| TB&E Model Product
14.Which of the following is NOT a marketing management philosophy?
a. sales orientation
b. societal marketing orientation
c. market orientation
d. profitability orientation
e. production orientation
ANS: D
PTS: 1
REF: 4-6
TOP: AACSB Reflective Thinking| TB&E Model Strategy
OBJ: 01-2 TYPE: Def
22. The _____ orientation assumes people will buy more if aggressive selling techniques are used.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
a.
b.
c.
d.
e.
market
sales
customer
production
exchange
ANS: B
The sales orientation assumes aggressive selling is what is needed to increase demand.
PTS: 1
REF: 5
OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective Thinking| TB&E Model Pricing
30. A company that has a market orientation and adheres to the marketing concept does NOT:
a. integrate all the activities of the firm to satisfy customer wants
b. focus on consumer needs and wants
c. differentiate the firm's products from its competitor's products
d. fuel sales growth through the application of aggressive sales techniques
e. concentrate on long-term goal achievement (such as profits and growth) for the firm
ANS: D
Aggressive sales techniques are part of the sales orientation and are not needed if a company is
meeting needs and wants of its customers.
PTS: 1
REF: 5
OBJ: 01-2 TYPE: Comp
TOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product
31. The statement, "Marketing should be introduced at the beginning rather than the end of the production
cycle and integrated into each phase of the business," is consistent with a(n) _____ orientation.
a. production
b. market
c. retail
d. sales
e. enterprise
ANS: B
Understanding the competitive arena and competitors' strengths and weaknesses is a critical
component of market orientation.
PTS: 1
REF: 5-6
OBJ: 01-2 TYPE: Comp
TOP: AACSB Reflective Thinking| TB&E Model Product
37. The marketing concept includes a goal orientation to remind managers that:
a. achieving long-term organizational goals is as important as satisfying customers
b. customers must be satisfied no matter what the long-term effect on the firm
c. the only reason for any business to exist is to make a profit
d. the objective is to find a target market that differs from that of the competition
e. functional integration of all departments is useful but not essential
ANS: A
The goal orientation refers to the company's goals, such as profit, growth, service, and survival.
PTS: 1
REF: 5-6
OBJ: 01-2 TYPE: Comp
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
40. An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs
and to meet organizational objectives but also to preserve or enhance individuals' and society's longterm best interests.
a. sales orientation
b. market orientation
c. ethical business mission
d. focused target market strategy
e. societal orientation
ANS: E
PTS: 1
REF: 6
OBJ: 01-2 TYPE: Def
45. Which of the following statements about the societal orientation is true?
a. Companies that protect the environment by using all-natural materials in their products are
showing a societal marketing orientation.
b. Marketers cannot deliver all benefits sought by customers because these benefits may not
be in the long-term best interests of the customers.
c. The societal marketing concept is an important refinement of the market concept.
d. Organizations have both a social and economic justification for their existence.
e. All of these statements about the societal orientation are true.
ANS: E
PTS: 1
REF: 6
OBJ: 01-2 TYPE: Comp
TOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Customer
60. _____ is defined as the relationship between benefits and the sacrifice necessary to obtain those
benefits.
a. Opportunity cost
b. Marketing utility
c. Market quality
d. Satisfaction percentage
e. Customer value
ANS: E
PTS: 1
REF: 6
OBJ: 01-3 TYPE: Def
64.
When customer expectations regarding product quality, service quality, and value-based price
are met or exceeded, _____ is created.
a. a value line
b. a quality rift
c. planning excellence
d. customer satisfaction
e. expectation satisfaction
ANS: D
PTS: 1
REF: 7
OBJ: 01-3 TYPE: Def
94. What is the fundamental objective of most businesses?
a. employee empowerment, teamwork, and relationship marketing
b. satisfied stakeholders
c. low costs and high quality
d. customer loyalty and retention
e. survival, profits, and growth
ANS: E
The use of marketing allows businesses to achieve this objective.
PTS: 1
REF: 11
OBJ: 01-4 TYPE: Comp
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapters 3 & 4
3. Corporate social responsibility is defined as the:
a. belief that the legal system defines ethical behavior
b. development of inclusive codes of ethics
c. rules by which social rewards are attained
d. concern for social welfare by businesses
e. coordination of social programs for publicity purposes
ANS: D
PTS: 1
REF: 29
TOP: AACSB Ethics| TB&E Model Strategy
OBJ: 03-1 TYPE: Def
4. Corporate social responsibility:
a. is mandated by federal law
b. requires companies to sacrifice economic performance for the sake of their stakeholders
c. does not influence competition
d. may not always result in profit and growth
e. is unaffected by environmental changes
ANS: D
PTS: 1
REF: 29
OBJ: 03-1 TYPE: Comp
7. _____ is the idea that socially responsible companies will outperform their peers by focusing on the
world's social problems and viewing them as opportunities to build profit and help the world at the
same time.
a. Sustainability
b. Philanthropy
c. Cause marketing
d. Creative ethics
e. International ethics
ANS: A
PTS: 1
REF: 29
OBJ: 03-1 TYPE: Def
15. The four components of the pyramid of corporate social responsibility are:
a. sustainability, creativity, profit, and culture
b. organizational culture, creativity imagery, economic performance, and objectivity
c. organizational, financial, social, and cultural responsibilities
d. sustainability, legality, creativity, and competition
e. economic, legal, ethical, and philanthropic responsibilities
ANS: E
PTS: 1
REF: 29-30
OBJ: 03-1 TYPE: Def
16. Which of the following statements describes ethics?
a. Ethics are the moral principles or values that generally govern the conduct of an
individual.
b. Ethics is the standard of behavior by which conduct is judged.
c. Morals are a foundation for ethical behavior.
d. Ethical values are situation specific and time oriented.
e. All of the statements describe ethics.
ANS: E
PTS: 1
REF: 30
TOP: AACSB Ethics| TB&E Model Strategy
OBJ: 03-2 TYPE: Comp
25.A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
a.
b.
c.
d.
e.
target market
buying center
aggregated unit
consumer cluster
demographic sample
ANS: A
PTS: 1
REF: 32
OBJ: 03-3 TYPE: Def
27. Which of the following statements best describes the typical target market?
a. A target market will remain stable over time, with the same group of consumers.
b. Target markets change over time as consumers drop in or out of the market, and as tastes change.
c. Target markets are not strongly affected by changes in the external environment.
d. Target markets only change when the features and benefits of the product offering change.
e. Target markets cannot be specifically defined according to age, income, or location because these
factors are continually changing.
ANS: B
Target markets are defined and described, but they are always changing in response to environmental
changes.
29. The external environment:
a. can be controlled in much the same manner as the internal marketing mix
b. cannot be influenced by marketing managers
c. does not change over time
d. does not have an impact on Fortune 500 companies
e. must be continually monitored by marketing managers
ANS: E
PTS: 1
REF: 32
OBJ: 03-3 TYPE: Comp
30. The external environment is a strong influence on a target market and can be a source of _____ for the
marketing manager.
a. opportunities and threats
b. threats and strengths
c. environmental loopholes
d. opportunities and weaknesses
e. product myopia
ANS: A
The external environment can provide opportunities to serve new and changing needs, as well as
warnings about changes that could threaten the current position of the firm. Students will need to
remember what a SWOT analysis is to answer this question.
33. What is apparently the most difficult external variable for marketing managers to forecast, influence,
or integrate into marketing plans?
a. technology
b. social factors
c. demography
d. competition
e. economic conditions
ANS: B
Social factors and changes are difficult to foresee, because they are usually slow and/or small changes.
Also, it is very difficult for one company to affect social factors in any appreciable manner.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
35. When a company engages in _____, it is implementing strategies that attempt to shape the external
environment in which it operates.
a. synergistic control
b. environmental management
c. transactional management
d. market control
e. reactive management
ANS: B
PTS: 1
REF: 33
TOP: AACSB Reflective Thinking| TB&E Model Strategy
OBJ: 03-3 TYPE: Def
38. _____ factors are the environmental factors concerned with the changes in people's values, lifestyles,
and family roles.
a. Social
b. Economic
c. Political
d. Competitive
e. Demographic
ANS: A
PTS: 1
REF: 33
OBJ: 03-4 TYPE: Comp
45. What do self-sufficiency, upward mobility, and conformity have in common?
a. These are no longer valued attitudes.
b. They are attitudes that can easily be changed.
c. These are three perceptions that Americans have of the Asian lifestyle.
d. These are three of the core values that have influenced lifestyles in the United States.
e. They are the determinants of a component lifestyle.
ANS: D
The fourth value is work ethic.
58. The study of people's vital statistics, such as their ages, births, deaths, and locations, is called:
a. cultural sociology
b. psychometrics
c. ecology
d. ethnography
e. demography
ANS: E
PTS: 1
REF: 34-35
TOP: AACSB Reflective Thinking| TB&E Model Customer
OBJ: 03-5 TYPE: Def
59. Which of the following is NOT a demographic characteristic of a population?
a. income level
b. age
c. values
d. education
e. birthrate
ANS: C
Values are a social factor.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
76. Factors, such as interest rates, inflation, and consumer income that influence the marketing
environment, are called _____ factors.
a. economic
b. socio-demographic
c. political
d. government
e. consumption
ANS: A
PTS: 1
REF: 39
OBJ: 03-7 TYPE: Def
82. A period of economic activity when income, production, and employment tend to fall, reducing overall
demand, is called:
a. stagnation
b. an inflation
c. a recession
d. price escalation
e. a depression
ANS: C
PTS: 1
REF: 40
OBJ: 03-7 TYPE: Def
86. Which of the following is sometimes an effective weapon for fighting inflation and recession?
a. technology
b. line extensions
c. increased capital gains taxes
d. introducing product-line extensions
e. reducing R&D expenditures
ANS: A
PTS: 1
REF: 40-41
OBJ: 03-8 TYPE: Def
87. Research that attempts to expand the frontiers of knowledge rather than solving a specific, pragmatic
problem is called:
a. technical diversity
b. reactive research
c. applied research
d. experiential research
e. basic research
ANS: E
PTS: 1
REF: 41
OBJ: 03-8 TYPE: Def
100. Laws and regulations of various governments and their ongoing development and change are an
example of _____ factors and are part of all organizations' external environment.
a. economic investment
b. political and legal
c. research and development
d. competitive
e. demographic
ANS: B
PTS: 1
REF: 42
TOP: AACSB Technology| TB&E Model Strategy
OBJ: 03-9 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 2
4. _____ is the managerial process of creating and maintaining a fit between the organization's objectives
and resources and evolving market opportunities.
a. Tactical management
b. The market audit
c. Functional planning
d. Environmental scanning
e. Strategic planning
ANS: E
PTS: 1
REF: 15
TOP: AACSB Reflective Thinking| TB&E Model Strategy
OBJ: 02-1 TYPE: Def
8. _____ is the process of anticipating events and determining strategies to achieve organizational
objectives.
a. Planning
b. Portfolio evaluation
c. Forecasting
d. Implementation
e. Evaluation
ANS: A
PTS: 1
REF: 15
OBJ: 02-1 TYPE: Def
TOP: AACSB Reflective Thinking| TB&E Model Marketing Plan
10. Marketing plans should be written to do all of the following EXCEPT:
a. compare actual and expected performance
b. provide clearly stated activities
c. create common goals for employees to work toward
d. allow managers to enter the marketplace with an awareness of possibilities and problems
e. control the elements of the external marketing environment
ANS: E
Marketing environment variables cannot be controlled.
PTS: 1
REF: 16
OBJ: 02-1 TYPE: Comp
TOP: AACSB Reflective Thinking| TB&E Model Marketing Plan
11. Which of the following is one of the elements of the marketing plan?
a. a business mission statement
b. a situation analysis
c. a target market strategy
d. the marketing mix
e. all of the choices
ANS: E
See Exhibit 2.1.
PTS: 1
REF: 17
OBJ: 02-1 TYPE: Def
TOP: AACSB Reflective Thinking| TB&E Model Marketing Plan
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
13. The _____ answers the question, "What business are we in, and where are we going?"
a. mission statement
b. financial statement
c. situation analysis
d. market strategy
e. strategic plan
ANS: A
PTS: 1
REF: 18
TOP: AACSB Analytic| TB&E Model Strategy
OBJ: 02-2 TYPE: Def
17. The focus of an organization's mission statement should be on:
a. the products it wishes to sell
b. the market it wishes to serve
c. its social responsibilities
d. the desires of government regulators
e. technologies it understands well
ANS: B
The choice of the market to serve determines the product and technology decisions.
21. A popular technique for managing a large organization with different technologies and markets is to
divide it into:
a. strategic business units
b. different technologies
c. strategic target markets
d. design matrices
e. tactical segments
ANS: A
PTS: 1
REF: 18
TOP: AACSB Analytic| TB&E Model Strategy
OBJ: 02-2 TYPE: Def
25. An SBU:
a. competes with the same companies as the other SBUs in the parent organization
b. shares the same mission with all the other SBUs in the parent organization
c. controls its business independent of other SBUs in the organization
d. usually benefits from the combined corporate raw materials purchases
e. still has strategic planning performed back at corporate headquarters
ANS: C
SBUs have separate business functions from one another and have their own mission statements,
markets, and planning.
27. After management agrees on a mission statement, it must set objectives. Which of the following is
NOT a characteristic of a good objective?
a. profitable
b. realistic
c. measurable
d. time-specific
e. consistent
ANS: A
Good objectives are not necessarily stated in terms of profit.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
28.A _____ is defined as a statement of what is to be accomplished through marketing activities.
a. mission statement
b. business plan
c. marketing objective
d. goal-driven directive
e. marketing criteria
ANS: C
PTS: 1
REF: 18
TOP: AACSB Reflective Thinking| TB&E Model Strategy
OBJ: 02-3 TYPE: Def
30. When an organization creates a mission statement that is too narrow, _____ results.
a. marketing synergy
b. marketing myopia
c. directional marketing
d. an internal threat
e. sustainable competitive advantage
ANS: B
Marketing myopia defines a business in terms of goods and services rather than in terms of benefits
customers seek. See Review Learning Outcome 2.
PTS: 1
REF: 18
OBJ: 02-2 TYPE: Def
TOP: AACSB Reflective Thinking| TB&E Model Product
35. For marketing objectives to be realized, they must meet all of the following criteria EXCEPT:
a. be consistent with organization objectives
b. be measurable
c. be attainable
d. be challenging
e. be set within a one-year time frame
ANS: E
There is no one-year time frame restriction for marketing objectives although specifying a particular
time frame makes an objective more clear and precise.
37. A _____ is a formal study conducted by an organization to ascertain its current status and capabilities
and its future expectations.
a. situation analysis
b. marketing audit
c. trend analysis
d. strategic alternative selection
e. competitive advantage audit
ANS: A
PTS: 1
REF: 19
TOP: AACSB Analytic| TB&E Model Research
OBJ: 02-4 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
39. The SWOT acronym refers to a firm’s analysis of its:
a. sales, width of product mix, observations, and technology
b. situations, wealth, organizational strengths, and target markets
c. strengths, weaknesses, opportunities, and threats
d. service levels, willingness to spend, organizational culture, and total revenues
e. strategies, willingness to change, objectives, and trends
ANS: C
PTS: 1
REF: 19
OBJ: 02-4 TYPE: Def
43. _____ is defined as the collection and interpretation of information about forces, events, and
relationships that may affect the organization.
a. Market sampling
b. An internal audit
c. Opportunity analysis
d. Environmental scanning
e. Stakeholder analysis
ANS: D
PTS: 1
REF: 19
OBJ: 02-4 TYPE: Def
68. _____ is a strategy of increasing market share for present products in existing markets.
a. Market penetration
b. Product development
c. Market development
d. Diversification
e. Product penetration
ANS: A
PTS: 1
REF: 22
OBJ: 02-6 TYPE: Def
70. _____ is a strategy that attracts new customers to existing products.
a. Product development
b. Market development
c. Market penetration
d. Product penetration
e. Diversification
ANS: B
PTS: 1
REF: 22
OBJ: 02-6 TYPE: Def
75. _____ is a strategy that creates new products for present markets.
a. Product penetration
b. Market penetration
c. Product development
d. Market development
e. Diversification
ANS: C
PTS: 1
REF: 22
OBJ: 02-6 TYPE: Def
76. _____ is the strategy of increasing sales by introducing new products into new markets.
a. Product penetration
b. Product development
c. Market penetration
d. Market development
e. Diversification
ANS: E
PTS: 1
REF: 22
OBJ: 02-6 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
102. A(n) _____ describes and estimates the size and sales potential of market segments of interest to the
firm and assesses key competitors in these market segments.
a. marketing orientation
b. environmental scan
c. marketing mix audit
d. target market strategy
e. market opportunity analysis
ANS: E
PTS: 1
REF: 24
TOP: AACSB Reflective Thinking| TB&E Model Strategy
OBJ: 02-7 TYPE: Def
105. The _____ is the unique blend of product, distribution, promotion, and pricing strategies designed to
produce mutually satisfying exchanges with a target market.
a. internal environmental mix
b. marketing mix
c. product mix
d. product line
e. market portfolio
ANS: B
PTS: 1
REF: 25
TOP: AACSB Reflective Thinking| TB&E Model Strategy
OBJ: 02-8 TYPE: Def
106. The starting point of any firm's marketing mix is the:
a. analysis of what production equipment is available and owned by the company
b. design of the promotion campaign to be used for the product
c. selection of the places through which the good or service will be sold
d. determination of the product's price, enabling future revenues and budgets to be estimated
e. development of the good or service to be sold
ANS: E
The product is the starting point for any marketing mix. Without it, pricing, distribution, and
promotion are irrelevant. The production capacity can be changed to fit the proposed product.
109. Making sure products are available when and where customers want them is the job of which element
of the marketing mix?
a. advertising strategies
b. production strategies
c. product strategies
d. promotion strategies
e. distribution strategies
ANS: E
Distribution strategies make products available when and where customers want them.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 5
MULTIPLE CHOICE
13. With a _____, a firm produces standardized products to be sold the same way all over the world.
a. traditional marketing strategy
b. global marketing standardization approach
c. product extension approach
d. culturally based marketing strategy
e. synergistic approach to marketing
ANS: B
PTS: 1
REF: 50
OBJ: 04-2 TYPE: Def
TOP: AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Product
14. Global marketing standardization:
a. is becoming less popular with the large multinationals
b. encourages product, packaging, and advertising variations for each nation or local market
c. actually raises production costs
d. presumes markets throughout the world are becoming more alike
e. is more popular with consumer products than with industrial goods
ANS: D
With a global marketing standardization approach, a firm produces standardized products to be sold
the same way worldwide. This approach assumes all customers have the same needs and wants.
16. A business thinking of expanding into global markets needs to examine all of the following external
environments EXCEPT:
a. culture
b. political structure and actions
c. its marketing mix
d. natural resources
e. demographic makeup
ANS: C
The marketing mix is the keystone of a company's internal environment.
17.Central to any society is a common set of values shared by its citizens that determines what is socially
acceptable. Marketers refer to these values collectively as a country's:
a. ethical system
b. culture
c. ethnocentricity
d. national personality
e. socialization
ANS: B
PTS: 1
REF: 50-51
OBJ: 04-3 TYPE: Def
24. Which of the following is an important cultural factor that should be considered by global marketers?
a. competitive synergy
b. language
c. natural resources
d. technology sensitivity
e. level of economic development
ANS: B
PTS: 1
REF: 51
TOP: AACSB Diversity| TB&E Model Strategy
OBJ: 04-3 TYPE: Comp
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
40. _____ are trade alliances in which several countries agree to work together to form a common trade
area that enhances trade opportunities among those countries.
a. Boycotts
b. Regional unifications
c. Market groupings
d. Free trade nations
e. Expropriation members
ANS: C
PTS: 1
REF: 52
OBJ: 04-3 TYPE: Def
41. Negotiations (such as GATT or the Uruguay Round) between countries that are made to stimulate
global exchange and remove barriers are called _____ agreements.
a. trade
b. joint venture
c. CRM
d. exchange
e. licensing
ANS: A
PTS: 1
REF: 52
OBJ: 04-3 TYPE: Def
42. _____ is a trade agreement that includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador,
Paraguay, Peru, and Uruguay. This agreement eliminated the tariffs among these trading partners.
a. NAFTA
b. Maastricht
c. WTO
d. GATT
e. Mercosur
ANS: E
PTS: 1
REF: 52
OBJ: 04-3 TYPE: Def
43. The latest round of World Trade Organization (WTO) talks has been contentious. A major goal of this
_____ is to bolster the developing economies of Africa, Asia, and Latin America where up to twothirds of the population works in agriculture.
a. Mercosur covenant
b. CAFTA Alliance
c. Doha Round
d. Uruguay Round
e. WTO Round
ANS: C
PTS: 1
REF: 52-53
OBJ: 04-3 TYPE: Def
44. The _____ of trade negotiations created the _____, which replaces GATT. This trade agreement
dramatically lowers trade barriers worldwide.
a. Uruguay Round; World Trade Organization
b. Doha Round; European Union
c. Doha Round; NAFTA
d. Paraguay Round; South American Free Trade Agreement
e. Mercosur; European Union
ANS: A
The Uruguay Round created the WTO.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
46.
The North American Free Trade Agreement (NAFTA) did NOT:
a. create the world's largest free-trade zone including Canada, the United States, and Mexico
b. substantially reduce economic growth in Mexico
c. allow U.S. and Canadian financial-services companies to own subsidiaries in Mexico
d. remove many tariffs and duties so that Mexico, Canada, and the United States can trade
more freely
e. expand opportunities for U.S. businesses in Mexico
ANS: B
Over the years, Mexico has made economic gains due to NAFTA.
55. Which method of entering the global marketplace would be LEAST risky?
a. exporting
b. licensing
c. contract manufacturing
d. joint ventures
e. direct investment
ANS: A
See Exhibit 4.1.
PTS: 1
REF: 55-56
OBJ: 04-4 TYPE: Comp
TOP: AACSB Reflective Thinking| TB&E Model Strategy
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 21
1._____ is a company-wide business strategy designed to optimize profitability, revenue, and customer
satisfaction by focusing on highly defined and precise customer segments.
a. Organizational optimization
b. Consumer relationship marketing (CRM)
c. Total quality management (TQM)
d. Customer relationship management (CRM)
e. Market aggregation
ANS: D
PTS: 1
REF: 293
OBJ: 19-1 TYPE: Def
TOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
5. Customer relationship management:
a. is often described as a closed-loop system
b. only involves personnel in marketing and management departments
c. organizes the company around functional departments
d. is a very simplistic method of encouraging customer satisfaction
e. is only a theory and has not been proven successful in any practical way
ANS: A
CRM is a company-wide business strategy designed to optimize profitability, revenue, and customer
satisfaction by focusing on highly defined and precise customer segments.
PTS: 1
REF: 293
OBJ: 19-1 TYPE: Comp
TOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
6. To initiate the CRM cycle, a company must first:
a. establish marketing objectives
b. decide on a segmentation strategy
c. establish customer relationships with the organization
d. determine the level of interaction customers have with the organization
e. acquire and capture customer data for product categories
ANS: C
PTS: 1
REF: 293
OBJ: 19-1 TYPE: Def
TOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
14. In a CRM environment, _____ is defined as the informal process of collecting customer information
through customer contacts and feedback on product performance.
a. corporate modification
b. attitude adjustment
c. organizational perception
d. stimulus/response research
e. learning
ANS: E
PTS: 1
REF: 295-296
TOP: AACSB Reflective Thinking| TB&E Model Customer
OBJ: 19-2 TYPE: Def
15. _____ is the process by which learned information from customers is centralized and shared in order to
enhance the relationship between customers and the organization.
a. Knowledge management
b. Learning
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
c. Database marketing
d. Interactive marketing
e. Information marketing
ANS: A
PTS: 1
REF: 295
OBJ: 19-2 TYPE: Def
17. _____ refers to the latitude organizations bestow on their representatives to negotiate mutually
satisfying commitments with customers.
a. Consumer learning
b. Customerization
c. Empowerment
d. Autonomy
e. Interaction
ANS: C
PTS: 1
REF: 296
OBJ: 19-2 TYPE: App
24. In a CRM system, _____ are all areas of the business where customers have contact with the company
and data may be gathered and used to guide and direct the decision making within that business unit.
a. touch points
b. focus areas
c. data mining
d. information search periods
e. observational points
ANS: A
PTS: 1
REF: 297
OBJ: 19-3 TYPE: Def
32. An organization should view every transaction as:
a. simply a financial exchange
b. deleterious to customer relationship management
c. the opportunity to collect vast amounts of data about the customer
d. the creation of customer-organization multiplicity
e. the closing of a channel
ANS: C
PTS: 1
REF: 298
OBJ: 19-4 TYPE: Comp
33. When viewed as an interaction between the organization and the customer, a transaction can produce
all of the following customer data EXCEPT:
a. name, address, and phone number
b. information about the customer's relationship with other customers
c. past purchase history
d. information about the customer's relationship with the organization
e. average amount spent on purchases
ANS: B
PTS: 1
REF: 298
OBJ: 19-4 TYPE: Comp
34. A(n) _____ is a central repository for data from various functional areas of the organization. These
data can be shared by all of the organization's departments.
a. information mine
b. knowledge distribution center
c. information extraction unit
d. information intermediary
e. data warehouse
ANS: E
PTS: 1
REF: 298-299
OBJ: 19-5 TYPE: Def
57. Which of the following techniques used to analyze marketing databases considers whether a customer
has made a purchase recently as well as how often that customer makes a purchase?
a. recency-frequency-monetary analysis (RFM)
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
b.
c.
d.
e.
predictive modeling
customer valuation
data mining
lifetime value analysis
ANS: A
PTS: 1
REF: 300
TOP: AACSB Technology| TB&E Model Customer
OBJ: 19-6 TYPE: Def
58. The basic assumption of _____ is that marketing to repeat customers is more profitable than marketing
to first-time buyers.
a. customer segmentation
b. predictive modeling
c. customer valuation
d. data manipulation
e. lifetime value analysis
ANS: E
Lifetime value analysis is a data manipulation technique that projects the future value of the customer
over a period of years using the assumption that marketing to repeat customers is more profitable than
marketing to first-time buyers.
PTS: 1
REF: 300
OBJ: 19-6 TYPE: Comp
TOP: AACSB Reflective Thinking| TB&E Model Strategy
60._____ uses a past set of occurrences to predict the likelihood that some other occurrence, such as a
response or purchase, will take place in the future.
a. Customer manipulation
b. Predictive modeling
c. Data mining
d. Lifetime value analysis
e. Causal research
ANS: B
PTS: 1
REF: 301
OBJ: 19-6 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 9—Decision Support Systems and Marketing Research
1. Everyday information about developments in the marketing environment that managers use to prepare
and adjust marketing plans is referred to as:
a. competitive intelligence
b. marketing information
c. decision support information
d. marketing research
e. observation
ANS: B
This describes marketing information, and accurate and timely information is the lifeblood of
marketing decision making.
PTS: 1
REF: 139
KEY: CB&E Model Strategy
OBJ: 09-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
2. A(n) _____ is an interactive, flexible, computerized information system that enables managers to
obtain and manipulate information as they are making decisions.
a. expert system
b. marketing information system
c. artificial intelligence system
d. marketing decision support system
e. database marketing system
ANS: D
This is the definition of a marketing decision support system.
PTS: 1
REF: 139
KEY: CB&E Model Strategy
OBJ: 09-1
TOP: AACSB Technology
MSC: BLOOMS Knowledge
4. A true marketing decision support system possesses all of the following characteristics EXCEPT:
a. flexible
b. discovery oriented
c. interactive
d. accessible
e. synergistic
ANS: E
A true marketing decision support system is interactive, flexible, discovery oriented, and accessible.
5. _____ is the creation of a large computerized file of customers’ and potential customers’ profiles and
purchase patterns.
a. Electronic targeting
b. Sampling procedure specification
c. Database marketing
d. Competitive data mining
e. Consumer behavior marketing
ANS: C
This is the definition of database marketing.
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6. _____ is the process of planning, collecting, and analyzing data relevant to a marketing decision. The
results of this analysis are then communicated to management.
a. Data collection
b. Artificial intelligence
c. Decision support
d. Marketing research
e. Single-source research
ANS: D
This is the definition of marketing research.
PTS: 1
REF: 140
KEY: CB&E Model Research
OBJ: 09-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
10. Marketing research has three functional roles. These roles are:
a. normative, descriptive, and explanatory
b. predictive, normative, and persuasive
c. descriptive, diagnostic, and predictive
d. flexible, interactive, and discovery-oriented
e. descriptive, explanatory, and predictive
ANS: C
The three roles are descriptive, diagnostic, and predictive.
PTS: 1
REF: 140
KEY: CB&E Model Research
OBJ: 09-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
21. In contrast to marketing research problems, management decision problems are:
a. action oriented
b. pervasive
c. narrower in scope
d. synergistic
e. information oriented
ANS: A
The marketing research problem is information oriented, but the management decision problem is
action oriented.
PTS: 1
REF: 141
KEY: CB&E Model Research
OBJ: 09-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
23. Data previously collected for purposes other than the one at hand are an important source of
information as the researcher defines the problem. These data are called _____ data.
a. single-source
b. secondary
c. primary
d. consensual
e. convenience
ANS: B
This is the definition of secondary data.
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25. Trade groups, commercial publications, and government departments can be used as sources of:
a. secondary data
b. consensual information
c. primary data
d. artificial intelligence
e. marketing audits
ANS: A
Innumerable outside sources of secondary information exist, such as trade and industry associations,
business periodicals, and government departments and agencies.
33. The research design specifies:
a. follow-up procedures for the research
b. the information that will be found
c. how the final report will be written
d. how the information gathered will be used to predict external environmental changes
e. the research questions to be answered
ANS: E
The research design specifies which research questions must be answered, how and when the data will
be gathered, and how the data will be analyzed.
34. Information collected for the first time for the purpose of solving a particular problem under
investigation is called _____ data.
a. primary
b. secondary
c. dichotomous
d. observation
e. convenience
ANS: A
This is the definition of primary data.
PTS: 1
REF: 142
KEY: CB&E Model Research
OBJ: 09-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
37. What is the chief advantage of primary data?
a. Low cost compared to secondary data
b. Relevance to the problem at hand
c. Availability to any interested party for use
d. Accessibility through computerized databases
e. Avoiding interviewer biases
ANS: B
Primary data are information collected for the first time for the purpose of solving a particular problem
under investigation.
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41. The most popular method for gathering primary data is _____, in which a researcher interacts with
people to obtain facts, opinions, and attitudes.
a. heuristic oriented
b. survey research
c. experiments
d. observation research
e. single-source research
ANS: B
Survey research takes several forms and is the most popular method for gathering primary data.
42. In-home personal interviews:
a. offer high-quality data at a high cost
b. offer the ability to obtain high-quality data at a low cost
c. are becoming increasingly more popular
d. are less expensive than mall intercepts
e. offer information of moderate quality but at a low cost
ANS: A
The cost of interviewer time and mileage is high, but these interviews yield high-quality information.
43. Which type of survey research method involves interviewing people in the common areas of shopping
malls?
a. Telephone interviews
b. Panel surveys
c. Mall intercept interview
d. Centralized interviews
e. Interactive research
ANS: C
This is the definition of a mall intercept interview.
50. Telephone interviews offer:
a. speed in gathering data
b. a potential for reaching all households
c. few nonresponses
d. the ability to collect large amounts of complex data
e. the lowest-cost method for obtaining data
ANS: A
Telephone interviews are one of the fastest means for collecting data. See Exhibit 9.2.
75. _____ research depends on watching what people do.
a. Anonymous viewership
b. Observation
c. Interactive
d. Personal scanner
e. Survey
ANS: B
Observation research is a method that relies on four types of observation: people watching people,
people watching an activity, machines watching people, and machines watching an activity.
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89. A(n) _____ sample is characterized by every element in the population having a known statistical
likelihood of being selected.
a. irregular
b. probability
c. nonprobability
d. convenience
e. piggyback
ANS: B
This is the definition of a probability sample.
93. A _____ sample is any sample in which little or no attempt is made to obtain a representative cross
section of the population.
a. frame
b. random
c. probability
d. nonprobability
e. representational
ANS: D
This is the definition of a nonprobability sample.
94. Nonprobability samples:
a. require more expensive marketing research than probability sampling
b. include any sample in which little is done to obtain a representative cross section of the
population
c. by definition must be representative of the population
d. often start out with random numbers to ensure selection of subjects is truly random
e. offer an easy method for determining sampling error
ANS: B
A nonprobability sample is any sample in which there is little or no attempt to obtain a representative
cross section of the population.
103. Which of the following is a type of probability sample?
a. Judgment sample
b. Convenience sample
c. Random sample
d. Quota sample
e. Snowball sample
ANS: C
A random sample is a type of probability sample in which every member of the population has a
known and equal chance of selection. The other types of samples are nonprobability samples. See
Exhibit 9.4.
116. All of the following are advantages associated with the use of Internet surveys EXCEPT:
a. decreased costs
b. ability to contact hard-to-reach respondents
c. reduced measurement error
d. ability to get survey results much more rapidly
e. ability to personalize the survey
ANS: C
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Measurement error is not an advantage associated with the use of Internet surveys.
118. All of the following are advantages associated with online focus groups EXCEPT:
a. good participation rates
b. cost-effectiveness
c. narrow geographic scope
d. accessibility
e. honesty of respondents
ANS: C
Online focus groups offer a broad geographic scope.
123. Marketing research should not be undertaken when:
a. the perceived costs are greater than the projected benefits
b. there are no secondary data in existence to guide the project definition
c. it will take a long time to complete
d. the actual costs are less than the forecasted benefits
e. the perceived costs are the same as the forecasted benefits
ANS: A
Research should be undertaken only when the expected value of the information is greater than the
cost of obtaining it.
PTS: 1
REF: 154-155
KEY: CB&E Model Research
OBJ: 09-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
124. An intelligence system that helps managers assess their competition and vendors in order to become
more efficient and effective competitors is called:
a. competitive research
b. competitive intelligence
c. industrial espionage
d. an audit
e. differential competitive advantage
ANS: B
This is the definition of competitive intelligence.
MSC: BLOOMS Synthesis
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 11—Developing and Managing Products
2. New-to-the-world products, where the product category itself is new, are also called:
a. discontinuous innovations
b. moderate innovations
c. slow-diffusing products
d. venture products
e. creative offerings
ANS: A
These products create an entirely new market.
13. _____ occurs when an existing product is targeted toward new market segments. It is another type of
new-product development because the product is new to that segment.
a. Brainstorming
b. Diffusing
c. Repositioning
d. Screening
e. Reciprocity
ANS: C
Repositioned products are existing products targeted at new markets or market segments, or ones
repositioned to change the current market’s perception of the product.
14. Companies that are most likely to succeed in the development and introduction of new products
typically are characterized by all of the following EXCEPT:
a. establish an environment conducive to achieving new-product objectives
b. make the long-term commitment needed to support innovation and new-product
development
c. capitalize on experience to achieve and maintain competitive advantage
d. use a company-specific approach, driven by corporate objectives and strategies, with a
well-defined new-product strategy at its core
e. introduce ten new products every year
ANS: E
Introducing a specific number of new products each year is not one of the factors identified for
success.
16. The first stage of the new-product development process is:
a. screening and concept testing
b. establishing the new-product strategy
c. exploring opportunities
d. developing a business analysis
e. the building of a prototype
ANS: B
See Exhibit 11.1. New-product strategy is the first subset of the organization’s new-product
development plan. It specifies what roles new products play in the organization’s overall plan and
describes goals.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
18.Which of the following is the LEAST likely source for new-product ideas?
a. A company’s distributors
b. Its customers
c. Its employees
d. Its financial lenders
e. Its competitors
ANS: D
Customers, employees, distributors, and competitors are interacting with the marketplace and may
have ideas for goods to serve customer needs. The bank from which the company gets its debt
financing is the least likely alternative here.
20. The process of converting applications for new technologies into marketable products is called:
a. basic research
b. product modification
c. marketing development
d. product development
e. correlation analysis
ANS: D
Product development is a marketing strategy that entails the creation of marketable new products.
21. _____ is a process where a group thinks of as many ways to vary a product or solve a problem as
possible without considering the practicality of the ideas.
a. New-product brain dumping
b. Screening
c. A focus group interview
d. Brainstorming
e. Diffusion
ANS: D
The goal of brainstorming is to get a group to think of unlimited ways to vary a product or solve a
problem, no matter how ridiculous it may seem.
24. Which of the following stages of the new-product development process is the first filter, which serves
to eliminate new-product ideas that are inconsistent with the organization’s new-product strategy or
are obviously inappropriate for some other reason?
a. Applied diffusion
b. Introductory diffusion
c. Business analysis
d. Test marketing
e. Idea screening
ANS: E
Most new-product ideas are rejected at this stage, called the idea screening stage.
25. At what stage of the new-product development process are most new-product ideas rejected?
a. Test marketing
b. Diffusion
c. Business analysis
d. Idea screening
e. Idea generation
ANS: D
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Screening is the stage when the bulk of the ideas are rejected for being incompatible or impractical.
30. _____ evaluate new-product ideas usually before any prototype has been created.
a. Concept tests
b. Simulated market tests
c. Market tests
d. User tests
e. Venture analyses
ANS: A
Concepts test are often used at the screening stage to rate concept (or product) alternatives.
PTS: 1
REF: 175
KEY: CB&E Model Product
OBJ: 11-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
34. In the _____ stage of new-product development, the technical feasibility of manufacturing the new
product is examined as a prototype is produced.
a. screening
b. development
c. market testing
d. concept testing
e. business analysis
ANS: B
During the development stage, the technical feasibility of manufacturing the product at a reasonable
cost is thoroughly examined. This stage can be long and expensive and can involve a great deal of
testing. Products are often modified after the testing.
35. A team-oriented approach to new-product development is referred to as:
a. simultaneous product development
b. synergistic product development
c. commercialized product development
d. synchronized product development
e. parallel product development
ANS: A
The development process works best when all the involved areas (research and development,
marketing, engineering, production, and even suppliers) work together rather than sequentially, a
process call simultaneous product development.
37. _____ is a limited introduction of a product and a marketing program to determine the reactions of
potential customers in a market situation.
a. Use testing
b. Test marketing
c. Concept testing
d. Laboratory testing
e. Discontinuous innovation
ANS: B
After products and marketing programs have been developed, they are usually tested in the
marketplace using test marketing, which is the limited introduction of a product and a marketing
program to determine the reactions of potential customers in a market situation.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
39. A(n) _____ typically entails showing members of the product’s target market advertising and other
promotional materials for several products, including the test product. These people are then taken to a
mock or real store, where their purchases are recorded.
a. adoption-rate test
b. real test market
c. concept test
d. simulated (laboratory) market test
e. consumer juried test
ANS: D
This is a description of a simulated (laboratory) market test.
PTS: 1
REF: 177-178
OBJ: 11-2
KEY: CB&E Model Product | CB&E Model Research
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
40. The maker of Purell hand sanitizer tested consumers’ reactions to its Purell Sanitizing Wipes by
getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and
then “shop” in a mock store filled with real products, including the new product. This is an example of
a(n):
a. adoption-rate test
b. simulated (laboratory) market test
c. concept test
d. use test
e. juried consumer test
ANS: B
Simulated (laboratory) market tests typically entail showing members of the target market advertising
for a variety of products and then monitoring purchase behavior in a mock or real store.
PTS: 1
REF: 177-178
KEY: CB&E Model Product
OBJ: 11-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
41. Which of the following has been found to be an efficient substitute for traditional methods of
conducting test markets?
a. Product sampling
b. Simulated product adoption
c. Online test marketing
d. Simulated diffusion
e. Market concentration
ANS: C
The text describes Proctor & Gamble’s online test marketing.
42. The final stage in the new-product development process is:
a. product testing
b. market testing
c. commercialization
d. product prototyping
e. simulated marketing
ANS: C
Commercialization is the decision to market a product.
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43. During the _____ stage of the new-product development process, production starts, inventories are
built up, the product is shipped to distribution points, the sales force is trained, and advertising and
promotion begin.
a. commercialization
b. product testing
c. market analysis
d. product prototyping
e. simulated marketing
ANS: A
The commercialization stage is the decision to market a product and sets several task in motion.
46. A product that is perceived as new by a potential adopter, whether the product is “new to the world” or
simply new to the individual, is called a(n):
a. innovation
b. diffusion
c. discontinuous product
d. laggard
e. simulated new product
ANS: A
An innovation is a product perceived as new by a potential adopter.
48. The process by which the adoption of an innovation spreads is referred to as:
a. diffusion
b. circulation
c. transmission
d. dissemination
e. dispersion
ANS: A
This is the definition of diffusion.
50. _____ are eager to try new ideas and products. They typically have higher incomes, are better
educated, and are more cosmopolitan than other categories of adopters.
a. Early adopters
b. Innovators
c. Early majority
d. Late majority
e. Laggards
ANS: B
These are characteristics of innovators, who are almost obsessed with trying new ideas and products.
55. All of the following are categories of adopters in the diffusion process of innovations EXCEPT:
a. laggards
b. innovators
c. early majority
d. early adopters
e. doubters
ANS: E
The five categories of adopters are innovators, early adopters, early majority, late majority, and
laggards.
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58. The _____ adopt a product because most of their friends have already done so, and their adoption is
usually the result of pressure to conform because they rely on group norms.
a. laggards
b. early adopters
c. early majority
d. innovators
e. late majority
ANS: E
PTS: 1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
REF: 180
OBJ: 11-4
KEY: CB&E Model Product | CB&E Model Strategy
63. Which is the last adopter category to adopt an innovation?
a. Late majority
b. Laggards
c. Late diffusers
d. Reluctant adopters
e. Traditionalists
ANS: B
Laggards represent the final 16 percent to adopt an innovation. By the time they adopt an innovation, it
has probably become outmoded and replaced by something else.
64. All of the following are product characteristics influencing the rate of adoption EXCEPT:
a. complexity
b. compatibility
c. relative advantage
d. observability
e. distribution
ANS: E
While it is a marketing factor that may influence the rate of adoption of a new product, distribution is
not a product factor influencing the rate of adoption.
65. Which product factor influencing the rate of adoption represents the degree of difficulty involved in
understanding and using a new product?
a. Complexity
b. Compatibility
c. Relative advantage
d. Observability
e. Trialability
ANS: A
The more complex the product, the slower is its diffusion.
67. Which product characteristic affecting the rate of adoption represents the degree to which the new
product is consistent with existing values and product knowledge, past experiences, and current needs?
a. Complexity
b. Compatibility
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c. Relative advantage
d. Observability
e. Trialability
ANS: B
Products that are compatible with others will gain from existing product knowledge, past experiences,
and current needs.
71. The product characteristic affecting the rate of adoption characterized by the degree to which a product
is perceived as superior to existing substitutes is:
a. compatibility
b. complexity
c. relative advantage
d. product differentiation
e. competitive advantage
ANS: C
The relative advantage is the degree to which a product is perceived to be superior to existing
substitutes.
76. The degree to which a product can be used on a limited basis represents which product characteristic
influencing the rate of adoption?
a. Complexity
b. Trialability
c. Observability
d. Relative advantage
e. Sampling
ANS: B
Trialability is the degree to which a product can be tried on a limited basis.
81. All the brands that satisfy a particular type of need such as shaving products, laundry detergent, soft
drinks, and furniture make up a(n):
a. product life cycle stage
b. primary group
c. adopter category
d. product category
e. reference group
ANS: D
This is the definition of a product category.
PTS: 1
REF: 181
KEY: CB&E Model Product
OBJ: 11-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
85. The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage.
a. growth
b. decline
c. introductory
d. maturity
e. commercialization
ANS: A
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Because losses often occur during the introductory stage, profits first appear in the growth stage.
87. At the beginning of the maturity stage of the product life cycle, sales typically:
a. become flat and do not change
b. increase at an increasing rate
c. decrease at a decreasing rate
d. decrease at an increasing rate
e. increase at a decreasing rate
ANS: E
In the maturity stage, sales are still increasing, but the rate of increase has slowed down.
89. In which stage of the product life cycle do marginal competitors start dropping out of the market?
a. Introduction
b. Growth
c. Maturity
d. Decline
e. Shake-out
ANS: C
In the maturity stage, sales increase at a decreasing rate, and as prices and profits continue to fall,
marginal competitors start dropping out of the market.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 8 – Segmentation
A market is people or organizations that have:
a.
b.
c.
d.
e.
the ability, willingness, and power to buy
a medium of exchange and products they desire
needs and wants and an ability and willingness to buy
unmet needs or wants and products or services that satisfy those unmet needs or wants
communication, financial, and capital resources
ANS: C
A market is defined as having four imperative characteristics: people or organizations,
needs and wants, ability to buy, and willingness to buy.
A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.
a.
b.
c.
d.
e.
market universe
market segment
aggregated market
segmentation base
population sample
ANS: B
This is the definition of a market segment.
_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.
a.
b.
c.
d.
e.
Perceptual mapping
Positioning
Micromarketing
Market sampling
Market segmentation
ANS: E
This is the definition of market segmentation.
The purpose of market segmentation is to:
a.
b.
c.
d.
e.
reduce the market down to a size the firm can handle
divide the market into equal size and profit regions for sales territories
group a large number of markets together, enabling a company to serve them simultaneously
develop a generalized definition of the market as a whole
enable the marketer to tailor marketing mixes to meet the needs of one or more specific
groups
ANS: E
The purpose of segmentation is to group similar consumers and to serve their needs
with a specialized marketing mix.
All of the following are steps in the market segmenting process EXCEPT:
a.
determining the objectives of the segmentation strategy
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b.
c.
d.
e.
profiling and analyzing segments
designing, implementing, and maintaining appropriate marketing mixes
selecting a market or product category for study
choosing a basis or bases for segmenting the market
ANS: A
The steps in segmenting a market are (1) select a market or product category for study;
(2) choose a basis or bases for segmenting the market; (3) select segmentation descriptors; (4) profile and analyze segments; (5) select target markets; and (6) design,
implement, and maintain appropriate marketing mixes.
All of the following are criteria for successful market segmentation EXCEPT:
a.
b.
c.
d.
e.
substantiality
identifiability and measurability
accountability
accessibility
responsiveness
ANS: C
The four criteria are substantiality, identifiability and measurability, accessibility, and
responsiveness.
To be useful, a segmentation scheme must produce segments that meet four basic
criteria. The criteria are:
a.
b.
c.
d.
e.
segmentability, targetability, reliability and validity, and homogeneity
tangibility, inseparability, nonperishability, and uniqueness
substantiality, identifiability and measurability, accessibility, and responsiveness
reliability, flexibility, tangibility, and unbiased
complexity, compatability, relative advantage, trialability, and observability
ANS: C
Useful segments should be substantial, identifiable and measurable, accessible, and
responsive to different marketing mixes.
According to the criterion of _____ a selected segment must be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of
this segment must be commercially viable, even if the number of potential customers is
small.
a. causality
b. accountability
c. responsiveness
d. accessibility
e. substantiality
ANS: E
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_____ are characteristics of individuals, groups, or organizations that marketers use to
divide a total market into segments.
a.
b.
c.
d.
e.
Differentiation guides
Segmentation bases
Perceptual maps
Responsiveness quotients
Accessibility quotients
ANS: B
This is the definition of segmentation bases.
Income, ethnic background, gender, and age are all examples of _____ segmentation
bases.
a.
b.
c.
d.
e.
geodemographic
organizational
demographic
socioeconomic
psychographic
ANS: C
These are demographic characteristics of consumers.
_____ segmentation is based on personality, motives, and lifestyles.
a.
b.
c.
d.
e.
Psychographic
Demographic
Benefit
Family life cycle
Character
ANS: A
Personality, motives, and lifestyles are bases of psychographic segmentation.
_____ is the process of grouping customers into market segments according to the
benefits sought from the product.
a.
b.
c.
d.
e.
Benefit segmentation
Value-added segmentation
Lifestyle segmentation
Macrosegmentation
Psychographic segmentation
ANS: A
This is the definition of benefit segmentation.
Which type of segmentation divides a market by the amount of product bought or consumed?
a.
b.
c.
d.
e.
Benefit segmentation
Characteristic segmentation
Usage-rate segmentation
Demographic segmentation
Psychographic segmentation
ANS: C
This is the definition of usage-rate segmentation.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
A(n) _____ strategy entails selecting one segment of a market to target and focuses on
understanding the needs, motives, and satisfactions of the members of that segment,
as well as on developing a highly specialized marketing mix.
a.
b.
c.
d.
e.
universal product
undifferentiated targeting
concentrated targeting
market development
product development
ANS: C
Concentrated targeting strategy selects one segment of a market for targeting marketing efforts.
When a firm serves two or more well-defined market segments with a distinct marketing
mix for each, it is using a(n) _____ targeting strategy.
a.
b.
c.
d.
e.
undifferentiated
concentrated
niche
multisegment
pluralistic
ANS: D
A firm that chooses to serve two or more well-defined market segments and develops a
distinct marketing mix for each has a multisegment targeting strategy.
Product positioning is the process of:
a.
b.
c.
d.
e.
finding the correct location for retail outlets to sell a product category
finding the right channel of distribution for a product
creating the desired image of the firm’s product
competing with competitors’ products in the retailers’ stores for the best position on the
shelf
pricing the product to be at a competitive level with other brands on the market
ANS: C
Positioning is developing a specific marketing mix to influence potential customers’
overall perception of a brand, product line, or organization in general.
_____ is the development of a specific marketing mix to influence potential customers’
overall perception of a brand, product line, or organization in general and is related to
the place a product occupies in consumers’ minds relative to competing offerings.
a.
b.
c.
d.
e.
Market differentiation
Diversification
Combination marketing
Positioning
Market aggregation
ANS: D
This is the definition of positioning.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
The place a product, brand, or group of products occupies in consumers’ minds relative
to competing offerings is referred to as a product’s:
a.
b.
c.
d.
e.
status
equity
frame
role
position
ANS: E
This is the definition of a product’s position.
Which of the following is a means of displaying or graphing, in two or more dimensions,
the location of products, brands, or groups of products in customers’ minds?
a.
b.
c.
d.
e.
Perceptual mapping
Product positioning
Market segmentation
Product tracing
Laddering
ANS: A
This is the definition of perceptual mapping
A manufacturer of an all-natural fruit and veggie bar targeted to people who want nutritious snacks has asked for marketing research to explain the reasons for the recent
failure of its Apple-Broccoli bar. This type of research is described as:
a. descriptive
b. predictive
c. diagnostic
d. normative
e. historical
ANS: C
To help understand why attendance at the team’s games was so poor, the Atlanta Falcons used marketing research to gather factual information. The organization used ingame surveys and end-of-season surveys of ticket holders. The gathering of factual
statements is an example of marketing research in its _____ role.
a. historical
b. descriptive
c. predictive
d. normative
e. objective
ANS: B
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Marketing research has three functional roles. These roles are:
a. normative, descriptive, and explanatory
b. predictive, normative, and persuasive
c. descriptive, diagnostic, and predictive
d. flexible, interactive, and discovery-oriented
e. descriptive, explanatory, and predictive
ANS: C
In contrast to marketing research problems, management decision problems are:
a. action oriented
b. pervasive
c. narrower in scope
d. synergistic
e. information oriented
ANS: A
Chapter 6—Consumer Decision Making
2. The steps of the consumer decision-making process in order are:
a. need recognition, alternative aggregation, reevaluation, purchase decision, postpurchase
behavior
b. need positioning, stimulus response reactions, evaluation of alternatives, purchase
decision, postpurchase behavior
c. need positioning, alternative aggregation and divestment, purchase decision, postpurchase
evaluation
d. information search, need positioning, evaluation of alternatives, product trial, purchase
decision, postpurchase satisfaction
e. need recognition, information search, evaluation of alternatives, purchase, and
postpurchase behavior
ANS: E
See Exhibit 6.1.
3. Which step in the consumer decision-making process is a result of an imbalance between actual and
desired states?
a. Evaluation of alternatives
b. Want recognition
c. Purchase
d. Need recognition
e. Postpurchase behavior
ANS: D
Need recognition is the result of an imbalance between actual and desired states.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
5. Which of the following is any unit of input affecting one or more of the five senses: sight, smell, taste,
touch, and hearing?
a. Tactic
b. Need
c. Stimulus
d. Want
e. Desire
ANS: C
Stimuli can be either internal, such as occurrences you experience, or external, which are influences
from an outside source. Both affect one or more of the five senses.
11. After a need or want is recognized, a consumer may search for information about the various
alternatives available to satisfy it. This occurs during which part of the consumer decision-making
process?
a. Evaluation of alternatives
b. Information search
c. Cognitive dissonance
d. Consideration stage
e. Product identification
ANS: B
After recognizing a need or want, consumers search for information about the various alternatives
available to satisfy it.
14. Which of the following is an information source that is not associated with advertising or promotion?
a. External
b. Nonmarketing-controlled
c. Marketing-controlled
d. Unbiased
e. Primary
ANS: B
Nonmarketing-controlled information sources do not originate with marketers promoting the product.
15. An external information search is especially important when:
a. there is a great deal of past experience
b. there are high costs associated with making an incorrect decision
c. the cost of gathering information is high
d. buying frequently purchased, low-cost items
e. there is little risk of making an incorrect decision
ANS: B
If a consumer perceives a purchase to involve high risk (financial, social, etc.), an external search will
lower the risk by providing more information.
20. All of the following influence the extent to which an individual conducts an external search for
information EXCEPT:
a. perceived risk
b. knowledge
c. prior experience
d. social class
e. level of interest
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ANS: D
Social class wouldn’t necessarily affect the amount of information search a consumer would conduct.
21. A group of brands, resulting from an information search, from which a buyer can choose is referred to
as the buyer’s:
a. evoked set
b. primary set
c. inert set
d. complete set
e. justifiable set
ANS: A
A buyer’s evoked set is the set of alternatives from which a buyer can choose; also called
consideration set.
25. Extending a well-known and respected brand name from one product category to another product
category is referred to as:
a. brand stretching
b. brand extensions
c. brand bouncing
d. brand transfer
e. brand building
ANS: B
Brand extensions are common a way companies employ categorization to their advantage.
30. All of the following are ways consumers can reduce cognitive dissonance EXCEPT:
a. justifying the decision
b. seeking new information
c. sending a letter to the marketer
d. avoiding contradictory information
e. returning the product
ANS: C
Cognitive dissonance is the inner tension that a consumer experiences after recognizing an
inconsistency between behavior and values or opinions.
31. How can marketers reduce consumers’ cognitive dissonance?
a. Offer guarantees
b. Offer sales promotions
c. Avoid contradictory information
d. Change the product
e. Ignore it
ANS: A
Cognitive dissonance is an inner tension that a consumer experiences after recognizing an
inconsistency between behavior and values or opinions, and marketers can reduce it by sending a
postpurchase thank you or letter, displaying product superiority in ads, or offering guarantees.
32. _____ is the amount of time and effort a buyer invests in the search, evaluation, and decision processes
of consumer behavior.
a. Economic value
b. Involvement
c. Opportunity cost
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d. Temporal cost
e. Perceived level of personal risk
ANS: B
This is the definition of involvement.
33. The types of products people purchase using routine response behavior are typically:
a. frequently purchased, low-cost items
b. frequently purchased, high-cost items
c. infrequently purchased, low-cost items
d. infrequently purchased, high-cost items
e. all types of items, regardless of price or frequency of purchase
ANS: A
Routine response behavior is the type of decision making exhibited by consumers buying frequently
purchased, low-cost goods and services.
34. _____ is characterized by low involvement, a short time frame, an internal-only information search,
and low costs.
a. Limited decision making
b. Routine response behavior
c. Emotional buying
d. Intensive decision making
e. Temporally-limited behavior
ANS: B See Exhibit 6.2.
37. The type of decision making that requires a moderate amount of time for gathering information and
deliberating about an unfamiliar brand in a familiar product category is referred to as:
a. routine response behavior
b. limited decision making
c. extensive decision making
d. uninvolved decision making
e. affective decision making
ANS: B
This is the definition of limited decision making.
41. When a consumer is purchasing an unfamiliar, expensive product or an infrequently bought item, he or
she is practicing:
a. extensive decision making
b. cognitive harmonizing
c. limited problem solving
d. strategic behavior
e. stimulus discrimination
ANS: A
This is the definition of extensive decision making.
45. All of the following factors directly influence consumers’ level of involvement in the purchase process
EXCEPT:
a. consumer’s age
b. previous experience with the product
c. financial risk associated with the product
d. social visibility of the purchased item
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e. perceived risk of negative consequences as a result of the purchase
ANS: A
Age is a demographic variable that doesn’t necessarily influence a consumer’s level of involvement.
54. An enduring belief that a specific mode of conduct is personally or socially preferable to an alternative
mode of conduct is called a(n):
a. lifestyle
b. self-concept
c. attitude
d. value
e. perception
ANS: D
This is the definition of a value.
55. Homogeneous groups of people who share elements of the overall culture as well as unique elements
of their own group are called:
a. autonomous personal units
b. probability samples
c. subcultures
d. normative groups
e. dissociative groups
ANS: C
58. A(n) _____ is a group of people in a society who are considered nearly equal in status or community
esteem, who regularly socialize among themselves both formally and informally, and who share
behavioral norms.
a. extended family
b. subculture
c. dissociative group
d. social class
e. procreational family
ANS: D
This is the definition of social class.
60. Social influences on consumer buying decisions include:
a. society, culture, and family
b. reference groups, society, opinion leaders, and family
c. personality, lifestyle, and reference groups
d. reference groups, opinion leaders, and family
e. lifestyle, reference groups, and family
ANS: D
Lifestyle and personality are individual influences. Culture and society are cultural factors.
61. A group in society, such as family, friends, or a professional organization, that influences an
individual’s purchasing behavior is called a(n):
a. reference group
b. conformist group
c. opinion group
d. social group
e. influential group
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ANS: A
This is the definition of reference group.
62. Reference groups can be categorized very broadly as either:
a. primary or secondary
b. persuasive or nonpersuasive
c. direct or indirect
d. positive or negative
e. personal or nonpersonal
ANS: C
The two categorizations of reference group are direct and indirect.
65. A value or attitude deemed acceptable by a group is called a(n):
a. expectation
b. reference
c. aspiration
d. opinion
e. norm
ANS: E
Norms are considered acceptable behavior by a given reference group.
68. Which category of reference groups represents groups in which a consumer does not have
membership?
a. Direct
b. Indirect
c. Primary
d. Secondary
e. Incomplete
ANS: B
Indirect reference groups are groups consumers do not belong to, but they might aspire to belong to
one (aspirational group) or not want to be associated with one (nonaspirational group).
71. Opinion leaders are:
a. wealthy, well-educated individuals
b. experts on all high-involvement consumer goods
c. usually the same individuals for all social classes
d. people who influence others
e. easy to locate and target
ANS: D
Opinion leaders are individuals who influence the opinions of others.
74. Cultural values and norms are passed down to children through the process of:
a. accumulation
b. encroachment
c. assimilation
d. socialization
e. manifestation
ANS: D
Children are socialized to learn the culture within which they are raised.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
77. All of the following are individual factors influencing consumer buying decisions EXCEPT:
a. gender
b. age
c. family
d. personality
e. life cycle stage
ANS: C
A person’s buying decisions are influenced by personal characteristics that are unique to each
individual, such as gender; age and life cycle stage; and personality, self-concept, and lifestyle. Family
is a social factor influencing consumer buying decisions.
78. _____ is an orderly series of stages in which consumers’ attitudes and behavioral tendencies change
through maturity, experience, and changing income and status.
a. Socialization
b. The wheel of consumerism
c. The family life cycle
d. Lifestyle consumption
e. Acculturation
ANS: C
Families go through an orderly series of stages, and consumption attitudes and behaviors are
influenced by one’s stage in the series.
79. An individual’s _____ is a composite of psychological makeup and environmental forces. It includes
people’s underlying dispositions, especially their most dominant characteristics.
a. acculturation
b. socialization
c. personality
d. autonomy
e. attitude
ANS: C
This describes personality, which is a way of organizing and grouping the consistencies of an
individual’s reactions to situations.
80. _____ is how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and selfevaluations.
a. Socialization
b. Personality
c. Socialization
d. Normalization
e. Self-concept
ANS: E
This is the definition of self-concept.
81. Which of the following represents the way an individual actually perceives himself or herself?
a. Personal image
b. Ideal self-image
c. Real self-image
d. Lifestyle image
e. Defined self-image
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ANS: C
Self-image can be real, which is how a consumer actually perceives himself or herself, or ideal, which
is the way an individual would like to be.
83. The process by which people select, organize, and interpret stimuli into a meaningful and coherent
picture is called:
a. identification
b. retention
c. comprehension
d. perception
e. cognitive adaptation
ANS: D
This is the definition of perception.
93. Ranked from the lowest to the highest level, Maslow’s hierarchy of needs model includes:
a. safety, esteem, social, physiological, and self-actualization needs
b. physiological, social, esteem, economic, and self-actualization needs
c. psychological, safety, economic, esteem, and social needs
d. physiological, safety, social, esteem, and self-actualization needs
e. safety, economic, social, esteem, and self-development needs
ANS: D
See Exhibit 6.6.
94. According to Maslow’s hierarchy of needs model, the first needs most people would try to satisfy are
their _____ needs.
a. safety
b. physiological
c. economic
d. esteem
e. derived
ANS: B
The needs in order of lowest to highest are: physiological, safety, social, esteem, and self-actualization.
107. _____ is the learned ability to differentiate between similar objects such as packages of different
brands of aspirin.
a. Incentive discrimination
b. Stimulus generalization
c. Selective perception
d. Selective generalization
e. Stimulus discrimination
ANS: E
This is describing stimulus discrimination, which is a learned ability to differentiate among similar
products.
109. Which of the following is an organized pattern of knowledge that an individual holds as true about his
or her world?
a. Belief
b. Value
c. Affect
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d. Attitude
e. Descriptor
ANS: A
This is the definition of a belief.
111. _____ are learned tendencies to respond consistently toward a given object.
a. Motivational cues
b. Cultures
c. Lifestyles
d. Perceptions
e. Attitudes
ANS: E
This is the definition of attitudes.
112. An attitude toward a product is:
a. easy to change
b. a person’s point of view about the product
c. the same as a belief
d. the same as “intention to buy”
e. of short duration
ANS: B
“Point of view” is a simpler way to state “learned tendency to respond consistently.” Both denote an
opinion.
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Chapter 7—Business Marketing
2. A product is defined as a business product rather than a consumer good on the basis of its:
a. intended use
b. physical characteristics
c. price
d. distribution method
e. tangible attributes
ANS: A
The key characteristic distinguishing business products from consumer products is intended use, not
physical characteristics.
7. All of the following are current roles of the Internet in business marketing EXCEPT:
a. reduce costs
b. eliminate distributors
c. build channel partnerships and trust
d. brand building and development
e. integrate online and traditional media
ANS: B
See Exhibit 7.2
PTS: 1
REF: 105
KEY: CB&E Model Strategy
OBJ: 07-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
18. A particular segment of the business market includes those individuals and organizations that purchase
goods and services for the purpose of making a profit. They achieve this goal by using purchased
goods and services to make other goods, to become part of other goods, or to facilitate the daily
operations of the organization. This group is called the _____ segment of the business market.
a. institution
b. reseller
c. wholesaler
d. producer
e. government
ANS: D
This describes the producer segment of business customers.
23. Businesses that buy finished goods and sell them for a profit are called:
a. inventory carriers
b. producers
c. distribution networks
d. resellers
e. business facilitators
ANS: D
The reseller market includes retail and wholesale businesses that buy finished goods and resell them
for a profit.
26. The U.S. government is:
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
a.
b.
c.
d.
e.
not a business market segment
the world’s largest single customer
an organization accounting for over 50 percent of the U.S. gross national product
mainly a military equipment purchaser
using one centralized purchasing office for the entire government
ANS: B
The U.S. federal government is the world’s largest customer. The other alternatives do not apply
because various branches of the government have separate purchasing departments, and billions of
dollars are spent on food, clothing, desks, and other standard supply items (not just military hardware).
27. One segment of the business market has primary goals that differ from the ordinary business goals
such as profit, market share, or return on investment. This segment includes many schools, churches,
and civic clubs. Which business market is this?
a. Institutions
b. OEMs
c. Services
d. Providers
e. Resellers
ANS: A
Institutions such as schools, churches, and hospitals have service or activity goals but not profit goals
and are an important business market.
31. The government uses a system called NAICS to classify North American business establishments.
NAICS stands for:
a. Non-American Industry Classification System
b. North and South American Institutional Coding Services
c. Non-American Industrial Corporation System
d. North American Institution Code System
e. North American Industry Classification System
ANS: E
The North American Industry Classification System (NAICS) is an industry classification system for
classifying North American business establishments.
34. Managers can use the NAICS data to:
a. create a more focused mission statement
b. eliminate risk
c. classify consumer behavior
d. identify potential new customers
e. determine purchase motives
ANS: D
NAICS data can be converted to market potential estimates, market share estimates, and sales
forecasts. It can also be used for identifying potential new customers.
35. All of the following are demand characteristics of business markets EXCEPT:
a. inelastic demand
b. fluctuating demand
c. joint demand
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d. stable demand
e. derived demand
ANS: D
Business markets are characterized by derived demand, inelastic demand, joint demand, and
fluctuating demand.
36. The demand for consumer goods often affects the demand for business products. This characteristic of
business markets is called _____ demand.
a. elastic
b. inelastic
c. fluctuating
d. derived
e. joint
ANS: D
The demand for business products is called derived demand because organizations buy products to be
used in producing their customers’ products.
40. When two or more items are used in combination to produce a final product, they are said to have
_____ demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. elastic
ANS: C
This is the definition of joint demand.
43. When demand for a product is _____, an increase or decrease in the price of the product will not
significantly affect demand for the product.
a. responsive
b. elastic
c. inelastic
d. derived
e. bundled
ANS: C
This is the definition of inelastic demand.
52. The distribution structure in business marketing typically:
a. includes at least one wholesaler
b. is direct
c. is complex and multistage
d. uses a three-step channel
e. uses retail distributors
ANS: B
Direct channels, where manufacturers market directly to users, are much more common in business
markets than in consumer markets.
53. _____ is commonplace in business marketing and can sometimes occur over several months.
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a.
b.
c.
d.
e.
Negotiation
Need mediation
Customerization
Purchase arbitration
Disintermediation
ANS: A
Negotiating is common in business marketing.
54. If a business needs a particular good or service and decides to look among its own customers for a
provider of that good or service, the business is:
a. working to create purchase arbitration
b. opening itself up to prosecution for illegal activities
c. acting unethically
d. trying to eliminate derived demand barriers
e. practicing reciprocity
ANS: E
Reciprocity is the practice of business purchasers choosing to buy from their own customers.
58. _____ is the primary promotional method for the sale of all business products.
a. Direct mail
b. Advertising
c. Personal selling
d. Public relations
e. Trade promotions
ANS: C
Business sales tend to be large in dollar amounts and quantities and may require negotiation; thus, they
may rely heavily on the salesperson’s ability to communicate and work with the customer.
59. All of the following are considered types of business products EXCEPT:
a. raw materials
b. convenience goods
c. major equipment
d. accessory equipment
e. component parts
ANS: B
The types of business products are major equipment, accessory equipment, raw materials, component parts,
processed materials, supplies, and business services
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 10 (5th Textbook Edition —Product Concepts)
MULTIPLE CHOICE
3. Why is creation of a product the starting point for the marketing mix?
a. The production department must know what to produce first.
b. Production strategy is the first of the four Ps listed in the marketing mix.
c. Determination of the price, promotional campaign, and distribution network cannot begin
until the product has been specified.
d. Product development takes the longest amount of time to complete.
e. Actually, the product does not have to be the starting point--promotional strategies are
often the starting point.
ANS: C
The product is the first decision around which the others are based.
7. The consumer product classification system is based on:
a. how the market is segmented
b. the way the products are manufactured
c. the way products are used
d. the physical attributes of the product
e. the amount of effort consumers spend to acquire the product
ANS: E
Products are classified by the amount of effort that is normally expended in the acquisition process.
8. _____ products are purchased with little shopping effort. These products typically are purchased
regularly, usually with little planning, and require wide distribution.
a. Convenience
b. Specialty
c. Branded shopping
d. Unbranded shopping
e. Generic
ANS: A
PTS: 1
REF: 132
OBJ: 09-2 TYPE: Def
12. The convenience product marketing strategy includes:
a. wide distribution of the product
b. higher than ordinary prices
c. few retail outlets other than convenience stores
d. significantly lower promotion budgets
e. products that are not easily substitutable
ANS: A
To sell large amounts of products that consumers are unwilling to search for, there must be a large
number of retail outlets.
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13. Compared to the other classifications of consumer products, shopping products are:
a. widely available so they need little or no promotion
b. usually less expensive than convenience products
c. purchased without significant planning
d. usually more expensive than convenience products and are found in fewer stores
e. purchased immediately after the consumer realizes he or she needs them
ANS: D
Shopping products are typically items such as clothing, automobiles, and major appliances. Consumers
usually compare items across brands or stores.
16. The two types of shopping products are:
a. unsought and convenience
b. generic and family
c. exclusive and intensive
d. heterogeneous and homogeneous
e. consumer and business
ANS: D
PTS: 1
REF: 132
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 09-2 TYPE: Def
17. _____ are products consumers see as being basically the same, so consumers shop for the lowest price.
a. Low-prestige specialty products
b. Product equivalents
c. Heterogeneous shopping products
d. Generic convenience products
e. Homogeneous shopping products
ANS: E
PTS: 1
REF: 132
OBJ: 09-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer
19. _____ products are seen by consumers to differ in quality, style, suitability, and lifestyle compatibility.
Comparisons between these products are often quite difficult because they may have unique features
and different levels of quality and price.
a. Product equivalents
b. Comparative convenience products
c. Homogeneous shopping products
d. Product counterparts
e. Heterogeneous shopping products
ANS: E
PTS: 1
REF: 132
OBJ: 09-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer
22. _____ products are searched for extensively, and substitutes are not acceptable. These products may be
quite expensive, and often distribution is limited.
a. Exclusive shopping
b. Homogeneous convenience
c. Branded shopping
d. Specialty
e. Heterogeneous convenience
ANS: D
PTS: 1
REF: 132
OBJ: 09-2 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
TOP: AACSB Reflective Thinking | TB&E Model Product
27. _____ products are products that are not known about or not actively searched for by consumers.
These products require aggressive personal selling and highly persuasive advertising.
a. Hidden
b. Specialty
c. Equity
d. Unsought
e. Shopping
ANS: D
PTS: 1
REF: 133
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 09-2 TYPE: Def
31. A product line is a group of products that are closely related because the:
a. products share the same product managers
b. products all function in a similar manner and provide similar benefits
c. same company developed the idea for each product
d. products are all sold under the same brand name
e. products are all priced about the same
ANS: B
A product line is a group of closely related products offered by the organization that basically perform
the same tasks and provide the same benefits.
35. Product mix width may be defined as:
a. the number of different product categories found within an industry
b. the average number of products within each product line in the company
c. the average number of products offered by the company
d. the number of different product lines an organization offers for sale
e. the extensiveness of the coverage of the line from high end (expensive) to low end
(inexpensive)
ANS: D
PTS: 1
REF: 133
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 09-3 TYPE: Def
74. When a company markets several different products under the same brand name, it is referred to as
a(n) _____ brand.
a. family
b. generic
c. bargain
d. dealer
e. umbrella
ANS: A
PTS: 1
REF: 137
OBJ: 09-4 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 12 (5th Textbook Edition — Services and Nonprofit Organization Marketing)
MULTIPLE CHOICE
3. A(n) _____ is the result of applying human or mechanical efforts to people or objects.
a. application processor
b. profit intermediary
c. tangible product
d. service
e. nonprofit organization
ANS: D
PTS: 1
REF: 159
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 11-1 TYPE: Def
21. It is difficult to achieve consistency and standardization of services because of which service
characteristic?
a. customization
b. simultaneous production and consumption
c. intangibility
d. perishability
e. heterogeneity
ANS: E
PTS: 1
REF: 160
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 11-2 TYPE: Def
24. Due to service _____, services cannot be stored, warehoused, or inventoried.
a. tangibility
b. variability
c. intangibility
d. perishability
e. heterogeneity
ANS: D
PTS: 1
REF: 161
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 11-2 TYPE: Def
27. Which of the following is NOT a service component customers use to evaluate service quality?
a. validity
b. empathy
c. assurance
d. responsiveness
e. reliability
ANS: A
PTS: 1
REF: 161
OBJ: 11-3 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
41. Which of the following is NOT an example of a type of service processing that can occur?
a. people processing
b. product processing
c. possession processing
d. information processing
e. mental stimulus processing
ANS: B
PTS: 1
REF: 163
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 11-4 TYPE: Def
43. Which of the following services is an example of possession processing?
a. a theatrical performance
b. an X-ray of a broken bone
c. an advertising agency
d. marriage counseling
e. heating system repair
ANS: E
Possessions processing occurs when the service is directed to the customers’ physical possessions.
45. Which of the following services is an example of mental stimulus processing?
a. taxi cab service
b. insurance
c. a professional tennis match
d. veterinarian care
e. a hair cut
ANS: C
PTS: 1
REF: 163
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 11-4 TYPE: App
46. Which of the following services is an example of information processing?
a. investment advice
b. a funeral service
c. pet neutering
d. the fitting of orthodontic braces
e. attendance at a Major League Baseball game
ANS: A
Information processing describes services that use brain power directed at a customer’s assets.
50. The service offering of G&R Talent Agency is performers suitable for appearances on college
campuses. This service is an example of the agency's _____ service.
a. standardized
b. customized
c. supplementary
d. core
e. component
ANS: D
The core service is what the consumer is buying.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
52. _____ is the strategy that uses technology to deliver customized services on a mass basis.
a. Mass standardization
b. Aggregated services
c. Technological processing
d. Mass customization
e. Aggregated marketing
ANS: D
PTS: 1
REF: 163
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 11-4 TYPE: Def
53. The ability of each hotel guest to use his or her room’s television to check out of the hotel room and to
confirm additional charges on bills in the hotel's restaurants and gift shops is an example of:
a. a cooperative service
b. mass customization
c. aggregated standardization
d. a market development strategy
e. mental stimulus processing
ANS: B
PTS: 1
REF: 163
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 11-4 TYPE: App
59. Promotion strategies for dealing with the unique features of services include all of the following
EXCEPT:
a. using personal sources of information
b. creating strong organizational images
c. stressing tangible cues
d. using postpurchase communication
e. satisfying patronage-oriented objectives
ANS: E
Patronage-oriented objectives are part of a service pricing strategy.
PTS: 1
REF: 164
OBJ: 11-4 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Promotion | TB&E Model Strategy
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 13 (5th Textbook Edition — Marketing Channels)
MULTIPLE CHOICE
1. A _____ is a business structure of interdependent organizations that reaches from the point of product
origin to the consumer.
a. facilitating agency or place member
b. marketing mix intermediary
c. selective distribution channel
d. marketing channel or channel of distribution
e. transportation channel or channel of movement
ANS: D
PTS: 1
REF: 171
OBJ: 12-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Distribution
3. Distribution channels aid in overcoming barriers to exchange that are created in the production process
by overcoming all of the following types of discrepancies EXCEPT:
a. possession
b. assortment
c. quantity
d. spatial
e. temporal
ANS: A
Channels facilitate the end goal of possession of the goods, but they do not help to overcome a
discrepancy of possession.
PTS: 1
REF: 172
OBJ: 12-1 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Distribution
4. A discrepancy of _____ is the difference between the amount of product produced and the amount an
end user wants to buy.
a. space
b. quantity
c. assortment
d. accumulation
e. possession
ANS: B
PTS: 1
REF: 172
OBJ: 12-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Product
6. If a retail outlet does not offer all the items necessary in order for the buyer to use or to receive full
satisfaction from a product purchased there, there is a:
a. discrepancy of assortment
b. discrepancy of quantity
c. spatial discrepancy
d. temporal discrepancy
e. discrepancy of possession
ANS: A
PTS: 1
REF: 172
OBJ: 12-1 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
25. The three basic functions channel intermediaries perform are:
a. transactional, logistical, and facilitating
b. contacting, negotiating, and ownership
c. promoting, distributing, and bulk-breaking
d. assorting, accumulating, and allocating
e. financing, mediating, and storing
ANS: A
PTS: 1
REF: 174
OBJ: 12-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Distribution
26. Transactional channel functions include all of the following activities EXCEPT:
a. contacting buyers
b. promoting the products to be sold
c. taking the risks associated with product inventories
d. negotiating the sale
e. physical distribution and sorting
ANS: E
See also Exhibit 12.2.
27. Marketing channels perform all of the following logistical activities EXCEPT:
a. sorting
b. storing
c. grading
d. risk taking
e. assorting products into homogeneous or heterogeneous collections
ANS: D
Risk taking is a transactional activity. See Exhibit 12.2
PTS: 1
REF: 174
OBJ: 12-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Distribution
29. _____ describes the process of strategically managing the efficient flow and storage of raw materials,
in-process inventory, and finished goods from point of origin to point of consumption.
a. Contract logistics
b. Logistics
c. Cross-docking
d. Disintermediation
e. Channel facilitation
ANS: B
PTS: 1
REF: 174
OBJ: 12-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product
31.
a.
b.
c.
d.
e.
Which of the following is NOT a sorting activity?
assorting
accumulation
sorting out
allocation
possession
ANS: E
See Exhibit 12.2.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
33. Which of the following are examples of facilitating functions performed by wholesaling
intermediaries?
a. sorting and storing
b. risk taking and promotion
c. assorting, accumulating, grading, and allocating
d. researching and financing
e. financial management and storing
ANS: D
See Exhibit 12.2.
PTS: 1
REF: 174
OBJ: 12-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Research
35. One configuration of a marketing channel entails producers selling to consumers with no
intermediaries involved. This is called a:
a. limited distribution system
b. conventional channel
c. vertical marketing system
d. reciprocal channel
e. direct channel
ANS: E
See Exhibit 12.3 and Exhibit 12.4.
PTS: 1
REF: 175
OBJ: 12-3 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution
37.
a.
b.
c.
d.
e.
A channel typically used for industrial products is the _____ channel.
direct
industrial distributor
wholesaler
retailer
extended
ANS: A
See Exhibit 12.4.
39. Companies selling standardized items of moderate or low value to other businesses (not to consumers)
often use:
a. retailers
b. industrial distributors
c. direct marketing organizations
d. agents and brokers
e. disintermediation
ANS: B
PTS: 1
REF: 175
OBJ: 12-3 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Distribution
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
41. _____ distribution occurs when a producer selects two or more different channels to distribute the
same products to target markets.
a. Selective
b. Intensive
c. Multiple
d. Contractual
e. Cumulative
ANS: C
PTS: 1
REF: 176
OBJ: 12-3 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product
49. _____ coordinates and integrates all of the activities performed by channel members into a seamless
process, from the source to the point of consumption, resulting in enhanced customer and economic
value.
a. Yield management
b. Channel power
c. Materials handling
d. Supply chain management
e. Physical distribution
ANS: D
PTS: 1
REF: 176
TOP: AACSB Reflective Thinking | TB&E Model Customer
OBJ: 12-4 TYPE: Def
59. _____ is distribution aimed at maximum market coverage. It is used for many convenience goods and
supplies that need to be available in every outlet where the potential customer might want to buy them.
a. Selective distribution
b. Channel franchising
c. Intensive distribution
d. Horizontal channeling
e. Exclusive distribution
ANS: C
PTS: 1
REF: 178
OBJ: 12-5 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution | TB&E
Model Product
62. _____ distribution is achieved by screening dealers to eliminate all but a few in any single geographic
area. Shopping goods and some specialty products that consumers are willing to search for are sold
this way.
a. Intensive
b. Selective
c. Exclusive
d. Dual
e. Controlled
ANS: B
PTS: 1
REF: 178
OBJ: 12-5 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product
66.The most restrictive form of market coverage, _____ distribution, entails establishing only one or a few
dealers within a given geographic area. Because buyers need to be willing to search or travel to acquire
the product, this form of distribution is limited to consumer specialty goods, a few shopping goods,
and major industrial equipment.
a. selective
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
b.
c.
d.
e.
intensive
exclusive
dual
premium
ANS: C
PTS: 1
REF: 179
OBJ: 12-5 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product
98. The mode of transportation that provides the most accessibility is:
a. pipelines
b. airfreight
c. truck freight
d. water transport
e. railroad
ANS: C
Motor carriers (trucks) can go to more locations than any of the other modes of transportation.
100. One major advantage of pipelines over other modes of transportation is:
a. availability
b. points served
c. flexibility
d. speed
e. dependability
ANS: E
Pipelines are rarely interrupted by weather, traffic, or labor disputes.
101. Which of the following describes a disadvantage associated with water transportation?
a. cannot be used for international trade
b. high cost
c. capability
d. lack of speed
e. product weight restrictions
ANS: D
Shipping via water is the slowest mode of transportation.
102. Which of the following transportation modes can most easily determine the location of a package en
route between shipper and receiver?
a. air
b. truck
c. rail
d. pipe
e. water
ANS: A
In addition to speed, air transport offers an important additional benefit to shippers, the ease of tracing
shipments. See Exhibit 12.5.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 16 (5th Textbook Edition —Integrated Marketing Communications)
MULTIPLE CHOICE
1. _____ is communications by marketers that inform, persuade, and remind potential buyers of a product
in order to influence an opinion or elicit a response.
a. Distributive communication
b. Perceptual communication
c. Statistically provable advertising
d. Promotion
e. Publicity
ANS: D
PTS: 1
REF: 207
TOP: AACSB Communication | TB&E Model Promotion
OBJ: 14-1 TYPE: Def
4. The main function of a promotional strategy is to:
a. convince the target customers that a firm's products offer competitive advantages over
those of its competition
b. find a niche in the marketplace for the firm and its products
c. provide the firm with research information about the success of its marketing effort
d. create efficient distribution channels
e. guarantee control over the length of the stages of the product life cycle
ANS: A
The function of a promotional strategy is to convince the target customers that the goods and services
offered provide a competitive advantage over the competition.
5. A _____ is defined as a set of unique features of a company and its products perceived by the target
market as significant and superior to the competition.
a. comparative differentiation
b. competitive advantage
c. marketing mix
d. special benefit
e. promotional plan
ANS: B
PTS: 1
REF: 207
TOP: AACSB Reflective Thinking | TB&E Model Product
OBJ: 14-1 TYPE: Def
11. The promotional mix consists of:
a. advertising, publicity, direct marketing, and personal selling
b. public relations, direct marketing, personal selling, and publicity
c. product, promotion, price, and place
d. advertising, personal selling, sales promotion, and public relations
e. advertising, telemarketing, public relations, and sales promotions
ANS: D
PTS: 1
REF: 207-210
TOP: AACSB Communication | TB&E Model Promotion
OBJ: 14-2 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
14. _____ is any form of sponsor-identified, impersonal paid mass communication.
a. Advertising
b. Publicity
c. Promotion
d. Public relations
e. Nonpaid communication
ANS: A
PTS: 1
REF: 208
TOP: AACSB Reflective Thinking | TB&E Model Promotion
OBJ: 14-2 TYPE: Def
16. Which of the following statements about advertising is true?
a. The total costs of advertising are typically low.
b. The signs on the outsides of buses and taxis are not a form of advertising.
c. The cost per contact in advertising is low.
d. Innovative media are not used in advertising.
e. Advertising is any form of communication in which the sponsor is identified.
ANS: C
The total costs of advertising are typically high even though the cost of contact is low. To be
advertising, the communication must be paid for. Innovative media are used in advertising. The signs
are a form of advertising because they are paid for and they identify their sponsors.
18. The marketing function that evaluates public attitudes, identifies areas within the organization that are
of public interest, and executes a program of action to gain public understanding is:
a. public relations
b. advertising
c. implicit communications
d. personal selling
e. sales promotion
ANS: A
PTS: 1
REF: 208
TOP: AACSB Reflective Thinking | TB&E Model Promotion
OBJ: 14-2
20. Public information about a company, good, or service appearing in the mass media as a news item is:
a. personal selling
b. advertising
c. mass communications
d. publicity
e. sales promotion
ANS: D
PTS: 1
REF: 208-209
OBJ: 14-2 TYPE: Def
23. Which of the following statements about sales promotions is true?
a. Public relations cannot effectively be used with sales promotions.
b. Sales promotion is a type of direct marketing.
c. Marketers view sales promotions as more effective when they are created as long-term
stimulation tools.
d. Trade shows, coupons, premiums, and vacation giveaways are types of sales promotions.
e. All sales promotions must be aimed outside the organization.
ANS: D
Sales promotions can be used to improve the effectiveness of advertising and public relations
activities. Sales promotions are most effective as short-term tools. Sales promotions are commonly
directed at the organization's employees as well as to consumers and dealers.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
24. _____ consists of all marketing activities that stimulate consumer purchasing such as coupons,
contests, free samples, and trade shows.
a. Sales promotion
b. Publicity
c. Personal selling
d. Advertising
e. Sponsorship
ANS: A
PTS: 1
REF: 209
TOP: AACSB Reflective Thinking | TB&E Model Promotion
OBJ: 14-2 TYPE: Def
28. _____ is a purchase situation in which two or more people communicate in an attempt to influence
each other.
a. Implicit communication
b. Personal selling
c. Mass communication
d. Public relations
e. Synergistic communication
ANS: B
PTS: 1
REF: 209-210
TOP: AACSB Reflective Thinking | TB&E Model Promotion
OBJ: 14-2 TYPE: Def
68. What are the three basic tasks of promotion?
a. informing, persuading, and convincing
b. persuading, convincing, and reminding
c. informing, convincing, and reminding
d. informing, persuading, and reminding
e. persuading, comparing, and reminding
ANS: D
PTS: 1
REF: 214
TOP: AACSB Reflective Thinking | TB&E Model Promotion
OBJ: 14-4 TYPE: Def
70. Informative promotion is generally used:
a. when memory stimulus is needed
b. when the brand name is well-known to consumers
c. during the early stages of the product life cycle
d. during an attempt to gain the immediate action of a consumer
e. when advertising a simple, nontechnical, mature product
ANS: C
Informative promotion is a necessary ingredient for increasing demand for a product category and is
used when the product is introduced.
75. The goal of persuasive promotion is to:
a. stimulate a purchase or other action
b. increase brand awareness
c. describe available services
d. remind the consumers of where to buy the product
e. maintain top-of-mind consumer awareness
ANS: A
Persuasion generally attempts to motivate a consumer to purchase a product.
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
78. _____ promotion is used to keep a familiar brand name in the public's mind and is prevalent during the
maturity stage of the product life cycle.
a. Influence
b. Amusement
c. Informative
d. Persuasive
e. Reminder
ANS: E
PTS: 1
REF: 214-215
TOP: AACSB Reflective Thinking | TB&E Model Promotion
OBJ: 14-4 TYPE: Def
81. Which of the following outlines a sequential four-step process for achieving promotional goals?
a. communication model
b. hierarchy of impacts
c. AIDA concept
d. Maslow's hierarchy of needs
e. Schramm's model
ANS: C
PTS: 1
REF: 215
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 14-5 TYPE: Def
83. AIDA stands for:
a. Attitude-Interest-Demand-Activity
b. Attention-Interest-Desire-Action
c. Awareness-Intent-Demand-Action
d. Avoidance-Interest-Desire-Acceptance
e. Attitudes-In-Developing-Acquisitions
ANS: B
PTS: 1
REF: 215
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 14-5 TYPE: Comp
33. One method used for setting advertising objectives is:
a. campaign budgeting
b. objective and task
c. the DAGMAR approach
d. percentage of sales
e. contribution margin
ANS: C
PTS: 1
REF: 226
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 15-3 TYPE: Def
34. DAGMAR is an acronym for:
a. defining and achieving goals means advertising reach
b. developing aggressive markets
c. designing advertising with market research
d. defining advertising goals for measured advertising results
e. developing aggressive growth markets and revenues
ANS: D
PTS: 1
REF: 226
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 15-3 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
Chapter 19 (5th Textbook Edition —Pricing Concepts)
MULTIPLE CHOICE
1. According to the text, price is best described as:
a. the perceived value of a good or service
b. money exchanged for a good or service
c. the psychological results of purchasing
d. the cost in dollars for a good or service as set by the producer
e. the value of a barter good in an exchange
ANS: A
PTS: 1
REF: 255
OBJ: 17-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Pricing
2. Revenue:
a. equals quantity sold times profit margin
b. equals price minus costs
c. equals return on investment
d. is synonymous with profit
e. equals price of goods times quantity sold
ANS: E
PTS: 1
REF: 255
TOP: AACSB Reflective Thinking | TB&E Model Pricing
OBJ: 17-1 TYPE: Def
4. Money that is left over after paying for company activities is called:
a. return on investment
b. a contribution margin
c. profit
d. net worth
e. a current asset
ANS: C
PTS: 1
REF: 255
OBJ: 17-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Pricing
10. For convenience, pricing objectives can be divided into three categories. They are:
a. refundable, competitive, and attainable
b. perceived, actual, and unique-situational
c. differentiated, niche, and undifferentiated
d. profit oriented, sales oriented, and status quo
e. monopolistic, fixed, and variable
ANS: D
PTS: 1
REF: 256-258
OBJ: 17-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Pricing | TB&E Model Strategy
11. An organization is using _____ when it sets its prices so that total revenue is as large as possible
relative to total costs.
a. profit maximization
b. market share pricing
c. demand-oriented pricing
d. sales maximization
e. status quo pricing
ANS: A
PTS: 1
REF: 256
OBJ: 17-2 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
TOP: AACSB Reflective Thinking | TB&E Model Pricing | TB&E Model Strategy
14. _____ measures the overall effectiveness of management in generating profits with its available assets.
a. Return on investment
b. Economic order quantity
c. Target-on-sales
d. Retained earnings
e. Efficiency maximization
ANS: A
PTS: 1
REF: 256
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-2 TYPE: Def
18. A company using market share pricing has a _____ pricing objective.
a. profit-oriented
b. sales-oriented
c. demand-oriented
d. supply-oriented
e. status quo
ANS: B
PTS: 1
REF: 257
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-2 TYPE: Def
19. Under which of the following conditions will companies with low market share be most likely to fail?
a. competing in a slow-growth industry
b. competing in an industry that makes frequently purchased items
c. competing in an industry with few product changes
d. competing in an industry requiring market power and economies of scale
e. competing in none of these industries
ANS: D
A larger market share is required to boost economies of scale and market power.
PTS: 1
REF: 257
OBJ: 17-2 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
23. As a short-term pricing objective, _____ can be effectively used on a temporary basis to sell off
excessive inventory.
a. profit maximization
b. profit-oriented pricing
c. status quo pricing
d. sales maximization
e. market share pricing
ANS: D
Sales maximization pricing is a short-term price reduction to increase sales.
24. If a company's pricing objective is to meet the competition or to maintain existing prices, it is using
_____ pricing.
a. head-on
b. target return on investment
c. status quo
d. market share
e. demand-oriented
ANS: C
PTS: 1
REF: 258
OBJ: 17-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Pricing | TB&E Model Strategy
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
27. Although many factors can influence price, the primary determinants are:
a. costs of manufacturing and distribution
b. the demand for the good and the cost to the seller
c. demand by the consumer and perceived quality
d. distribution and promotion strategies
e. stage of the product life cycle and costs to the consumer
ANS: B
PTS: 1
REF: 258
TOP: AACSB Reflective Thinking | TB&E Model Pricing
OBJ: 17-3 TYPE: Def
28. _____ is defined as the quantity of a product that will be sold at various prices for a specified period.
a. Market share
b. Demand
c. Supply
d. Value
e. Revenue
ANS: B
PTS: 1
REF: 258
TOP: AACSB Reflective Thinking | TB&E Model Pricing
OBJ: 17-3 TYPE: Def
29. The price of the good or service is a key decision for a marketer because it most significantly and
directly affects the product's:
a. distribution
b. costs
c. demand
d. promotion
e. quality
ANS: C
The quantity of a product that people will buy depends on its price.
34. Most demand curves slope:
a. horizontally
b. upward and to the right
c. downward and to the left
d. vertically
e. downward and to the right
ANS: E
For most products when prices increase, demand will decrease.
35. The _____ is the quantity of a product that will be sold in the market at various prices for a specified
time period, and _____ is the quantity of a product that will be offered to the market by suppliers at
various prices for a specified period.
a. demand; equity
b. demand; supply
c. supply; demand
d. inventory; demand
e. inventory; supply
ANS: B
PTS: 1
REF: 258-259
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-3 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
36. _____ is defined as the quantity of product offered to the market by suppliers at various prices for a
specified period.
a. Supply
b. Demand
c. Equity
d. Liquidity
e. Current asset
ANS: A
PTS: 1
REF: 258
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-3 TYPE: Def
38. The point at which there is no inclination for the price to rise or fall is called price:
a. equilibrium
b. stability
c. leverage
d. symmetry
e. status quo
ANS: A
PTS: 1
REF: 259
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-3 TYPE: Comp
40. The responsiveness or the sensitivity of consumer demand to changes in price is referred to as _____
and occurs when consumers buy more or less of a product when the price changes.
a. the break-even point
b. the point of equilibrium
c. unitary revenue
d. asymmetrical demand
e. elasticity of demand
ANS: E
PTS: 1
REF: 259
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-3 TYPE: Def
41. When consumers are sensitive to price changes, _____ occurs.
a. inelastic demand
b. elastic supply
c. elastic demand
d. inelastic supply
e. unitary elasticity
ANS: C
PTS: 1
REF: 259
OBJ: 17-3 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Pricing | TB&E Model Customer
54. _____ use complex mathematical software to profitably fill unused capacity.
a. Yield management systems
b. Capacity correlation systems
c. Service forecasting tools
d. Service management systems
e. Capacity management software
ANS: A
PTS: 1
REF: 261
OBJ: 17-4 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Pricing | TB&E Model Online/Computer
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
55. Yield management systems are used to:
a. determine the availability of product substitutes in complex industries that are
experiencing rapid change
b. profitably fill unused capacity
c. predict necessary service levels to achieve revenue goals
d. determine whether it is financially more feasible to buy a new product or repair a broken
one
e. create elastic demand for low-involvement products
ANS: B
PTS: 1
REF: 261
OBJ: 17-4 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Online/Computer
59. A cost that changes with the level of output is called a(n) _____ cost.
a. liquidity
b. variable
c. fixed
d. asset
e. elastic
ANS: B
PTS: 1
REF: 262
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-5 TYPE: Def
61. _____ costs do not change as output is increased or decreased.
a. Asset
b. Variable
c. Fixed
d. Symmetrical
e. Status quo
ANS: C
PTS: 1
REF: 262
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-5 TYPE: Def
65._____ cost is the change in total costs associated with a one-unit change in output.
a. Variable
b. Intermittent
c. Elastic
d. Marginal
e. Flex
ANS: D
PTS: 1
REF: 262
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-5 TYPE: Def
66. When a seller determines the selling price by adding to cost an amount for profit and expenses not
previously accounted for, the seller is using _____ pricing.
a. profit maximization
b. demand-oriented
c. break-even
d. target return
e. markup
ANS: E
PTS: 1
REF: 262
OBJ: 17-5 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Pricing | TB&E Model Strategy
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
67. The most popular method used by wholesalers and retailers in establishing a sales price is _____
pricing.
a. markup
b. status quo
c. formula
d. marginal revenue
e. break-even
ANS: A
PTS: 1
REF: 262
OBJ: 17-5 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Pricing | TB&E Model Strategy
69. An independent retailer of specialty kitchen items wants to determine what price she should put on a
set of plastic wine glasses. They cost her $7. She desires a markup of 30 percent based on selling price.
Which of the following is closest to the price she should charge her customers?
a. $19
b. $12
c. $15
d. $10
e. $18
ANS: D
Price = Cost + Markup
Price = 7.00 + .3
Price = $10
PTS: 1
REF: 262
OBJ: 17-5 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Pricing
70. An educational toy store can buy a world globe for $30. If the store owner sells the globe for $45, what
is the markup based on the selling price?
a. 15 percent
b. 20 percent
c. 25 percent
d. 33 percent
e. 50 percent
ANS: D
Price - Cost = Markup
$45 - $30 = $15
$15 ÷ $45 = 33% markup
PTS: 1
REF: 262
OBJ: 17-5 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Pricing
76. Profit maximization occurs when:
a. total costs equals average fixed revenue
b. average variable costs are larger than average total costs
c. total costs equal total variable costs
d. marginal variable costs equal average revenues
e. marginal revenue equals marginal cost
ANS: E
PTS: 1
REF: 263
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-5 TYPE: Def
MKTG 300 SUMMER 12 QUIZ POOL ITEMS FOR ALL CHAPTERS
77. _____ is the extra revenue associated with selling an additional unit of output.
a. Average revenue
b. Marginal revenue
c. Marginal cost
d. Net profit
e. Average variable cost
ANS: B
PTS: 1
REF: 263
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-5 TYPE: Def
79. The point at which marginal cost and marginal revenue are equal always results in:
a. maximization of elasticity
b. maximization of revenue
c. maximization of costs
d. maximization of profits
e. break-even equilibrium
ANS: D
Until the point where MC = MR, each unit of sales has contributed to additional profit; therefore,
profit, not revenue or costs, has been maximized at MC = MR.
PTS: 1
REF: 263-264
OBJ: 17-5 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
80. _____ determine what sales volume must be reached for a product before the company's total costs
equal total revenue and no profits are earned.
a. Marginal revenue estimates
b. Price equilibrium analyses
c. Break-even analyses
d. Average total cost (ATC) figures
e. Marginal costs of goods sold
ANS: C
PTS: 1
REF: 264
TOP: AACSB Reflective Thinking | TB&E Model Strategy
OBJ: 17-5 TYPE: Def