Download Chapter 1: Defining Marketing for the 21st Century

MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
Chapter 1: Defining Marketing for the 21st Century
GENERAL CONCEPT QUESTIONS
Multiple Choice
1.
Good marketing is no accident, but a result of careful planning and ________.
a. execution
b. selling
c. strategies
d. tactics
e. research
Answer: a
Page: 4
Level of difficulty: Medium
Marketing is both an “art” and a “science”—there is constant tension between the formulated side of
marketing and the ________ side.
a. creative
b. selling
c. management
d. forecasting
e. behavior
Answer: a
Page: 4
Level of difficulty: Easy
2.
3.
The most formal definition of marketing is ________.
a. meeting needs profitably
b. identifying and meeting human and social needs
c. the 4Ps (Product, Price, Place, Promotion)
d. an organizational function and a set of processes for creating, communicating, and delivering,
value to customers, and for managing customer relationships in ways that benefit the organization
and its stake holders.
e. improving the quality of life for consumers
Answer: d
Page: 6
Level of difficulty: Medium
4.
Marketing management is ________.
a. managing the marketing process
b. monitoring the profitability of the companies products and services
c. selecting target markets
d. developing marketing strategies to move the company forward
e. the art and science of choosing target markets and getting, keeping, and growing customers
through creating, delivering, and communicating superior customer value
Answer: e
Page: 6
Level of difficulty: Easy
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
5.
A transaction involves ________.
a. at least two parties
b. each party has something that might be of value to the other party
c. each party is capable of communication and delivery
d. each party is free to accept or reject the exchange offer
e. all of the above
Answer: e
Pages: 6–7
Level of difficulty: Medium
________ goods constitute the bulk of most countries’ production and marketing efforts.
a. Durable
b. Impulse
c. Physical
d. Service
e. Event
Answer: c
Page: 8
Level of difficulty: Medium
6.
7.
________ can be produced and marketed as a product.
a. Information
b. Celebrities
c. Durable goods
d. Organizations
e. Properties
Answer: a
Page: 9
Level of difficulty: Medium
Charles Revson of Revlon observed: “In the factory, we make cosmetics; in the store, ________.”
a. we make profits
b. we challenge competitors
c. we implement ads
d. we sell hope
e. we sell quality
Answer: d
Page: 9
Level of difficulty: Easy
8.
9.
A ________ is someone seeking a response (attention, a purchase, a vote, a donation) from another
party, called the ________.
a. salesperson, customer
b. fund raiser, contributor
c. politician, voter
d. marketer, prospect
e. celebrity, audience
Answer: d
Page: 10
Level of difficulty: Hard
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
10. In ________—consumers may share a strong need that cannot be satisfied by an existing product.
a. negative demand
b. latent demand
c. declining demand
d. irregular demand
e. non-existent demand
Answer: b
Page: 10
Level of difficulty: Medium
11. In ________—more customers would like to buy the product than can be satisfied.
a. latent demand
b. irregular demand
c. overfull demand
d. excessive
e. negative demand
Answer: c
Page: 10
Level of difficulty: Medium
12. Marketers often use the term ________ to cover various groupings of customers.
a. people
b. buying power
c. demographic segment
d. social class position
e. market
Answer: e
Page: 10
Level of difficulty: Hard
13. Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and
athletic shoes and equipment spend a great deal of time trying to establish a superior brand image in
markets called ________.
a. business markets
b. global markets
c. consumer markets
d. nonprofit and governmental markets
e. service markets
Answer: c
Page: 11
Level of difficulty: Medium
14. In business markets, advertising can play a role, but a stronger role may be played by the sales force,
________, and the company’s reputation for reliability and quality.
a. brand image
b. distribution
c. promotion
d. price
e. performance
Answer: d
Page: 11
Level of difficulty: Hard
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
15. Global marketers must decide ________.
a. which countries to enter
b. how to enter each country (as an exporter, licenser, joint venture partner, contract manufacturer, or
solo manufacturer)
c. how to adapt their product and service features to each country
d. how to price their products in different countries
e. all of the above
Answer: e
Pages: 11–12
Level of difficulty: Medium
16. Mohan Sawhney has proposed the concept of ________ to describe a cluster of complementary
products and services that are closely related in the minds of consumers but are spread across a diverse
set of industries.
a. metamarket
b. vertical integration
c. horizontal integration
d. betamarket
e. synchronized marketing
Answer: a
Page: 12
Level of difficulty: Hard
17. The ________ promises to lead to more accurate levels of production, more targeted communications,
and more relevant pricing.
a. Age of Globalization
b. Age of Deregulation
c. Industrial Age
d. Information Age
e. Production Age
Answer: d
Page: 13
Level of difficulty: Medium
18. Many countries have ________ industries to create greater competition and growth opportunities.
a. open-market
b. deregulated
c. regulated
d. scientifically segmented
e. created mass market
Answer: b
Page: 13
Level of difficulty: Medium
19. Customers are showing greater price sensitivity in their search for ________.
a. the right product
b. the right service
c. the right store
d. value
e. relationships
Answer: d
Page: 14
Level of difficulty: Medium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
20. Rising promotion costs and shrinking profit margins are the result of ________.
a. changing technology
b. globalization
c. deregulation
d. privatization
e. heightened competition
Answer: e
Page: 14
Level of difficulty: Hard
21. Industry boundaries are blurring at an incredible rate as companies are recognizing that new
opportunities lie at the intersection of two or more industries—this is called ________.
a. globalization
b. customization
c. industry convergence
d. heightened competition
e. acquisition
Answer: c
Page: 14
Level of difficulty: Medium
22. In response to giant retailers and category killers, entrepreneurial retailers are building entertainment
into stores with coffee bars, lectures, demonstrations, and performances. They are marketing a(n)
________ rather than a product assortment.
a. experience
b. customer value
c. customer delight
d. total service solution
e. intangible benefit(s)
Answer: a
Page: 15
Level of difficulty: Medium
23. In response to threats from such companies as AOL, Amazon, Yahoo, eBay, E’TRADE, and dozens of
others, established manufacturers and retailers became “brick-and-click” oriented by adding online
services to their existing offerings. This process became known as ________.
a. reintermediation
b. disintermediation
c. e-commerce
d. e-collaboration
e. new market synchronization
Answer: a
Page: 15
Level of difficulty: Hard
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
24. Many brick-and-click competitors became stronger contenders in the marketplace than the pure-click
firms because they had a larger pool of resources to work with and ________.
a. better prices
b. greater value
c. well-established brand names
d. one-on-one communications
e. direct selling capability
Answer: c
Page: 15
Level of difficulty: Medium
25. The ________ is practiced most aggressively with unsought goods, goods that buyers normally do not
think of buying, such as insurance, encyclopedias, and funeral plots.
a. marketing concept
b. selling concept
c. production concept
d. product concept
e. holistic marketing concept
Answer: b
Page: 15
Level of difficulty: Medium
26. The ________ concept holds that consumers will favor those products that offer the most quality,
performance, or innovative features.
a. product
b. marketing
c. production
d. selling
e. holistic marketing
Answer: a
Page: 15
Level of difficulty: Easy
27. The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy
enough of the organization’s products.
a. production
b. selling
c. marketing
d. product
e. holistic marketing
Answer: b
Page: 15
Level of difficulty: Medium
28. Several scholars have found that companies who embrace the marketing concept achieve superior
performance. This was first demonstrated for companies practicing a ________—understanding and
meeting customers’ expressed needs.
a. reactive market orientation
b. proactive marketing orientation
c. total market orientation
d. impulsive market orientation
e. holistic market orientation
Answer: a
Page: 16
Level of difficulty: Medium
29. According to Theodore Levitt, who drew a perceptive contrast between the selling and marketing
concepts, ________ is preoccupied with the need to convert products into cash.
a. marketing
b. selling
c. direct marketing
d. holistic marketing
e. service marketing
Answer: b
Page: 16
Level of difficulty: Medium
30. In the course of converting to a marketing orientation, a company faces three hurdles—________.
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
a. organized resistance, slow learning, and fast forgetting
b. management, customer reaction, competitive response
c. decreased profits, increased R&D, additional distribution
d. forecasted demand, increased sales expense, increased inventory costs
e. customer focus, profitability, slow learning
Answer: a
Page: 16
Level of difficulty: Hard
31. Companies that practice both a reactive and proactive marketing orientation are implementing a
________ and are likely to be the most successful.
a. total market orientation
b. external focus
c. customer focus
d. competitive, customer focus
e. confrontation process
Answer: a
Page: 16
Level of difficulty: Medium
32. Marketers argue for a ________ in which all functions work together to respond to, serve, and satisfy
the customer.
a. cross-functional team orientation
b. collaboration model
c. customer orientation
d. management-driven organization
e. total quality model
Answer: c
Page: 16
Level of difficulty: Medium
33. ________ can be seen as the development, design, and implementation of marketing programs,
processes, and activities that recognizes the breadth and interdependencies of their effects.
a. Niche marketing
b. Holistic marketing
c. Relationship marketing
d. Supply-chain marketing
e. Demand-centered marketing
Answer: b
Page: 17
Level of difficulty: Medium
34. ________ marketing has the aim of building mutually satisfying long-term relations with key parties
such as customers, suppliers, distributors, and other marketing partners in order to earn and retain their
business.
a. Holistic
b. Demand-based
c. Direct
d. Relationship
e. Synthetic
Answer: d
Pages: 17–18
Level of difficulty: Easy
35. Companies who form a ________ collect information on each customer’s past transactions,
demographics, psychographics, and media and distribution preferences.
a. sales network
b. holistic union
c. marketing network
d. supply-chain network
e. integrated network
Answer: c
Page: 18
Level of difficulty: Hard
36. The ability of a company to deal with customers one at a time has become practical as a result of
advances in ________, computers, the Internet, and database marketing software.
a. improved communication flow
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
b. information technology
c. just-in-time manufacturing
d. factory customization
e. customer-centered strategies
Answer: d
Page: 18
Level of difficulty: Hard
37. One traditional depiction of marketing activities is in terms of the marketing mix or four Ps. The four
Ps are characterized as being ________.
a. product, positioning, place, and price
b. product, production, price, and place
c. promotion, place, positioning, and price
d. place, promotion, production, and positioning
e. product, price, promotion, and place
Answer: e
Page: 19
Level of difficulty: Easy
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
38. The four Ps represent the sellers’ view of the marketing tools available for influencing buyers. From a
buyer’s point of view, each marketing tool is designed to deliver a customer benefit. Robert Lauterborn
suggested that the sellers’ four Ps correspond to the customers’ four Cs. The four Cs are ________.
a. customer focus, cost, convenience, and communication
b. customer solution, customer cost, convenience, and communication
c. convenience, control, competition, and cost
d. competition, cost, convenience, and communication
e. category control, cost, concept development, and competition
Answer: b
Pages: 19–20
Level of difficulty: Medium
39. Holistic marketing incorporates ________, ensuring that everyone in the organization embraces
appropriate marketing principles, especially senior management.
a. profit objectives
b. share of customer
c. internal marketing
d. the marketing mix
e. strategic planning
Answer: c
Page: 20
Level of difficulty: Hard
40. Marketing is not a department so much as a ________.
a. company orientation
b. philosophy
c. function
d. branch of management
e. branch of economics
Answer: a
Page: 20
Level of difficulty: Medium
41. Holistic marketing incorporates ________ and understanding broader concerns and the ethical,
environmental, legal, and social context of marketing activities and programs.
a. safe product design
b. cultural marketing
c. social responsibility marketing
d. cross-functional teams
e. direct sales policies
Answer: c
Page: 20
Level of difficulty: Medium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
42. The ________ holds that the organization’s task is to determine the needs, wants, and interests of
target markets and to deliver the desired satisfactions more effectively and efficiently than competitors
in a way that preserves or enhances the consumer’s and the society’s well-being.
a. customer-centered business
b. focused business model
c. societal marketing concept
d. ethically responsible marketing manager
e. production-centered business
Answer: c
Page: 22
Level of difficulty: Medium
43. Companies see ________ as an opportunity to enhance their corporate reputation, raise brand
awareness, increase customer loyalty, build sales, and increase press coverage.
a. cause-related marketing
b. brand marketing
c. equity marketing
d. direct marketing
e. recognition marketing
Answer: a
Page: 23
Level of difficulty: Medium
44. When a customer has a(n) ________ need he/she wants a car whose operating cost, not its initial price,
is low.
a. stated
b. real
c. unstated
d. delight
e. secret
Answer: b
Page: 24
Level of difficulty: Hard
45. When a customer has a(n) ________ need the customer wants to be seen by friends as a savvy
consumer.
a. real
b. unstated
c. delight
d. secret
e. stated
Answer: d
Page: 24
Level of difficulty: Hard
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
46. During market segmentation analysis, the marketer identifies which segments present the greatest
opportunity. These segments are called ________.
a. target markets
b. primary markets
c. tertiary markets
d. demographic markets
e. focused markets
Answer: a
Page: 24
Level of difficulty: Medium
47. For each target market, the firm develops a ________. The offering is positioned in the minds of the
target buyers as delivering some central benefit(s).
a. value offering
b. niche offering
c. market offering
d. segment offering
e. social offering
Answer: c
Page: 24
Level of difficulty: Medium
48. ________ reflects the perceived tangible and intangible benefits and costs to customers.
a. Loyalty
b. Satisfaction
c. Value
d. Expectations
e. Comparison shopping
Answer: c
Page: 25
Level of difficulty: Medium
49. If a marketer decides to use warehouses, transportation companies, banks, and insurance companies to
facilitate transactions with potential buyers, the marketer is using what is called a ________.
a. service channel
b. distribution channel
c. brand channel
d. relationship channel
e. intermediary channel
Answer: a
Page: 26
Level of difficulty: Medium
50. ________ includes all the actual and potential rival offerings and substitutes that a buyer might
consider.
a. Competition
b. The product offering
c. A value proposition
d. The supply chain
e. The marketing environment
Answer: a
Page: 26
Level of difficulty: Easy
51. The ________ includes the immediate actors involved in producing, distributing, and promoting the
offering. The main actors are the company, suppliers, distributors, dealers, and the target customers.
a. operations environment
b. management environment
c. strategic environment
d. task environment
e. tactical environment
Answer: d
Page: 26
Level of difficulty: Medium
52. The ________ process consists of analyzing marketing opportunities; selecting target markets;
designing marketing strategies; developing marketing programs; and managing the marketing effort.
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
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a. marketing planning
b. strategic planning
c. market research
d. opportunity analysis
e. share of customer
Answer: a
Page: 27
Level of difficulty: Medium
53. David Packard of Hewlett-Packard once said, “Marketing is far too important to leave to ________.”
a. the advertising boys
b. uninformed managers
c. novices
d. the CEO
e. the marketing department
Answer: e
Page: 27
Level of difficulty: Medium
54. Some companies are now switching from being solely product-centered (with product managers and
product divisions to manage them) to being more ________ centered.
a. competency
b. strategy
c. marketing
d. customer-segment
e. sales
Answer: d
Page: 27
Level of difficulty: Hard
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
55. Companies are recognizing that much of their market value comes from ________, particularly their
brands, customer base, employees, distributor and supplier relations, and intellectual capital.
a. variable assets
b. the value proposition
c. intangible assets
d. tangible assets
e. customer preferences
Answer: c
Page: 28
Level of difficulty: Easy
56. ________ can increasingly be conducted electronically, with buyer and seller seeing each other on
their computer screens in real time.
a. Public relations
b. E-commerce
c. Advertising
d. Personal selling
e. Mass marketing
Answer: d
Page: 28
Level of difficulty: Medium
57. Top management is going beyond sales revenue alone to examine the marketing scorecard to interpret
what is happening to ________.
a. market share
b. customer loss rate
c. customer satisfaction
d. product quality
e. all of the above
Answer: e
Page: 29
Level of difficulty: Medium
58. At the heart of any marketing program is the ________—the firm’s tangible offering to the market.
a. service offer
b. product
c. sales support team
d. packaging
e. auxiliary offer
Answer: b
Page: 30
Level of difficulty: Medium
59. ________ activities are the means by which firms attempt to inform, persuade, and remind
consumers—directly or indirectly—about the brands they sell.
a. Consumer behavior
b. Market segmentation
c. Marketing research
d. Marketing communication
e. New product development
Answer: d
Page: 30
Level of activity: Medium
60. Marketing evaluation and ________ processes are necessary to understand the efficiency and
effectiveness of marketing activities and how both could be improved.
a. control
b. analysis
c. measurement
d. feedback
e. consumer behavior
Answer: a
Page: 30
Level of difficulty: Medium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
Chapter 3:
Gathering Information and Scanning the Environment
GENERAL CONCEPT QUESTIONS
Multiple Choice
1.
The major responsibility for identifying significant marketplace changes falls to the ________.
a. U.S. Department of Labor
b. company’s marketers
c. American Marketing Association
d. industry lobby groups found in Washington, D.C.
e. marketing research industry
Answer: b
Page: 72
Level of difficulty: Easy
2.
Marketers have extensive information about how consumption patterns vary across countries. On a per
capita basis within Western Europe, the ________ smoke the most cigarettes.
a. Swiss
b. Greeks
c. Irish
d. Austrians
e. French
Answer: d
Page: 72
Level of difficulty: Hard
3.
All of the following questions EXCEPT ________, would be considered to be forms of information
needs probes.
a. What decisions do you regularly make?
b. What information do you need to make decisions?
c. What data analysis programs would you want?
d. What magazines and trade reports would you like to see on a regular basis?
e. What products would be most closely matched to consumer needs?
Answer: e
Page: 73
Level of difficulty: Medium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
4.
________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and
distribute needed, timely, and accurate information to marketing decision makers.
a. A marketing information system
b. A marketing research system
c. A marketing intelligence system
d. A promotional campaign
e. A marketing database
Answer: a
Page: 73
Level of difficulty: Medium
The company’s marketing information system should be a cross between what managers think they
need, what managers really need, and ________.
a. what the marketing research department is able to do
b. what consumers are willing to share
c. what the competition is doing
d. what is acceptable industry practice
e. what is economically feasible
Answer: e
Page: 73
Level of difficulty: Medium
5.
6.
Marketing managers rely on internal reports. By analyzing this information, they can spot ________.
a. micro-markets
b. opportunities and problems
c. macro-markets
d. competitive strategies
e. consumer demographic units
Answer: b
Page: 73
Level of difficulty: Easy
7. The heart of the internal records system is the ________.
a. database
b. asset acquisition process
c. order-to-payment cycle
d. service consideration
e. information liquidity ratio
Answer: c
Page: 73
Level of difficulty: Hard
8. When a marketer “mines” his or her company’s database, fresh insights can be gained into neglected
customer segments, ________, and other useful information.
a. recent customer trends
b. long-term competitive trends
c. possible new inventions
d. possible new technologies
e. new primary data possibilities
Answer: a
Page: 74
Level of difficulty: Medium
9.
The internal records system supplies results data, but the marketing intelligence system supplies
________ data.
a. concurrent
b. secondary
c. research
d. happenings
e. premium
Answer: d
Page: 74
Level of difficulty: Medium
10. A ________ is a set of procedures and sources managers use to obtain everyday information about
developments in the marketing environment.
a. marketing research system
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
b. marketing information system
c. product management system
d. marketing intelligence system
e. vertical system
Answer: d
Page: 74
Level of difficulty: Medium
11. A company can take several steps to improve the quality of its marketing intelligence. If the company
purchases competitive products for study, attends open houses and trade shows, and reads competitors’
published reports and stockholder information, the company is using ________ to improve the quality
of its marketing intelligence.
a. sales force surrogates
b. intermediaries
c. external networks
d. advisory panels
e. customer feedback systems
Answer: c
Pages: 74–75
Level of difficulty: Hard
12. All of the following would be considered to be steps to improve the quality of marketing intelligence in
a company EXCEPT ________.
a. a company can train and motivate the sales force to spot and report new developments
b. a company can use guerrilla tactics such as going through a competitor’s trash
c. a company can motivate intermediaries to pass along important information
d. a company can network externally
e. a company can purchase information from outside suppliers
Answer: b
Pages: 74–76
Level of difficulty: Easy
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
13. The 2000 U.S. census provides an in-depth look at the population swings, demographic groups,
regional migrations, and changing family structure of 281+ million people. Which of the following
steps to improve the quality of company marketing intelligence system would be most closely
associated the above illustration?
a. A company can purchase information from outside suppliers.
b. A company can take advantage of government data sources.
c. A company can use online customer feedback systems to collect data.
d. A company can network externally.
e. A company can use its sales force to collect and report data.
Answer: b
Page: 76
Level of difficulty: Easy
14. There are four main ways that marketers can find relevant online information on competitors’ products
and weaknesses, and summary comments and overall performance rating of a product, service, or
supplier. ________ is(are) a type of site that is concentrated in financial services and high-tech
products that require professional knowledge.
a. Independent customer goods and service reviews
b. Distributor or sales agent feedback sites
c. Combo-sites offering customer reviews and expert opinions
d. Customer complaint sites
e. Shopping bot service sites
Answer: c
Page: 77
Level of difficulty: Hard
15. A ________ is “unpredictable, short-lived, and without social, economic, and political significance.”
a. fad
b. fashion
c. trend
d. megatrend
e. style
Answer: a
Page: 77
Level of difficulty: Medium
16. A ________ is a direction or sequence of events that has some momentum and durability; the
shape of the future is revealed and many opportunities are provided.
a. fad
b. fashion
c. trend
d. megatrend
e. style
Answer: c
Page: 77
Level of difficulty: Hard
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
17. ________ have been described as “large social, economic, political and technological changes
[that] are slow to form, and once in place, they influence us for some time—between seven and ten
years, or longer.
a. Fads
b. Fashions
c. Trends
d. Megatrends
e. Styles
Answer: d
Page: 77
Level of difficulty: Medium
18. Which of the following minority groups in the United States has been associated with one of the ten
megatrends shaping the consumer landscape?
a. African Americans
b. Asian Americans
c. European Americans
d. Hispanic Americans
e. Middle Eastern Americans
Answer: d
Page: 78
Level of difficulty: Medium
19. The beginning of the new century brought a series of new challenges. All of the following would
be considered to be among those challenges EXCEPT ________.
a. a deterioration of innovative ideas
b. steep decline of the stock market
c. increasing unemployment
d. corporate scandals
e. the rise of terrorism
Answer: a
Page: 78
Level of difficulty: Medium
20. With the rapidly changing global picture, the firm must monitor six major forces. All of the
following would be among those forces EXCEPT ________.
a.
b.
c.
d.
e.
demographic
economic
social-cultural
natural
promotional
Answer: e
Page: 78
Level of difficulty: Easy
21. The main demographic force that marketers monitor is(are) ________.
a.
b.
c.
d.
e.
suppliers
competitors
communication (such as advertising)
government reports dealing with birth rates
population
Answer: e
Page: 79
Level of difficulty: Easy
22. The population explosion has been a source of major concern. Unchecked population growth and
consumption could eventually result in all of the following EXCEPT ________.
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
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a. insufficient food supply
b. depletion of key minerals
c. overcrowding
d. restrictions on competition
e. pollution
Answer: d
Page: 79
Level of difficulty: Easy
23. One impact of explosive population growth is illustrated by the case of China. The Chinese
government passed regulations limiting families to one child. One consequence of these regulations is
that ________.
a. the children are so fussed over and spoiled that they become “little emperors”
b. school enrollments are dropping
c. the fledgling automotive business in China will not have customers in a few years
d. open rebellion is being preached
e. “child-oriented businesses” have few customers
Answer: a
Page: 80
Level of difficulty: Medium
24. A significant fact about population growth and population shifts is that in 2004 or 2005, ________.
a. the youth market will exceed that of the adult market
b. people over the age of 60 will outnumber those under five years of age
c. baby boomers will be eclipsed by Gen X young adults
d. most age group segments will be about equal
e. Gen Y young adults will surpass the baby boomers as the largest age segment
Answer: b
Page: 80
Level of difficulty: Hard
25. Which of the following age groups is thought to control three-quarters of the country’s wealth?
a. 0–20 age segment
b. 60+ age segment
c. 20–30 age segment
d. 30–40 age segment
e. 40+ age segment
Answer: e
Page: 81
Level of difficulty: Hard
19
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
26. At one time the United States was called a “melting pot” society because of the number of different
cultures that were integrated into the U.S. culture. Today, the United States is described as a ________
society because many ethnic groups are maintaining their ethnic differences, neighborhoods, and
cultures.
a. “boiling pot”
b. “salad bowl”
c. “banana split”
d. “doubled up”
e. “non-communicative”
Answer: b
Page: 81
Level of difficulty: Medium
27. According to the 2000 census, the U.S. population of 276.2 million was 72 percent white and
________ percent African American. The remainder consisted of Hispanic Americans and other
minorities.
a. 20
b. 18
c. 15
d. 13
e. 11
Answer: d
Page: 81
Level of difficulty: Hard
28. Diversity goes beyond ethnic and racial markets. More than ________ million Americans have
disabilities, and they constitute a market for home delivery companies (and others).
a. 50
b. 40
c. 30
d. 20
e. 10
Answer: a
Page: 83
Level of difficulty: Hard
29. Which of the following countries is known for having 99 percent of its population literate?
a. England
b. Germany
c. France
d. United States
e. Japan
Answer: e
Page: 83
Level of difficulty: Medium
20
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
30. The ________ household consists of a husband, wife, and children (and sometimes grandparents).
a. “traditional”
b. “extended”
c. “diversity”
d. “modern”
e. “revised”
Answer: a
Page: 83
Level of difficulty: Medium
31. Married couple households—the dominant cohort since the formulation of the United States—has
slipped from nearly 80 percent in the 1950s to around ________ percent today.
a. 70
b. 60
c. 50
d. 40
e. 35
Answer: c
Page: 83
Level of difficulty: Hard
32. The twenty-first century saw ________ markets grow more rapidly again due to a higher birth rate, a
lower death rate, and rapid growth from foreign immigration.
a. suburban
b. urban
c. rural
d. coastal
e. secondary
Answer: b
Page: 84
Level of difficulty: Medium
33. The movement by population to the ________ has lessened the demand for warm clothing and home
heating equipment and increased demand for air conditioning.
a. Grainbelt
b. Pacific Northwest
c. Sunbelt
d. Mid-Coastal areas
e. Heartland
Answer: c
Page: 84
Level of difficulty: Easy
21
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
34. Marketers look at where consumers are gathering. Almost one in ________ people over the age of five
(120 million) moved at least one time between 1995 and 2000, according to a Census 2000 brief.
a. two
b. three
c. four
d. five
e. ten
Answer: a
Page: 85
Level of difficulty: Hard
35. In which of the following economies would we expect to find few opportunities for marketers?
a. Industrializing economies.
b. Land-locked economies.
c. Raw-material-exporting economies.
d. Industrial economies.
e. Subsistence economies.
Answer: e
Page: 86
Level of difficulty: Easy
36. According to information presented in the text, which of the following countries is surprisingly a very
good market for Lamborghini automobiles (costing more than $150,000) because of the number of
wealthy families that can afford expensive cars.
a. Greece
b. Switzerland
c. Holland
d. Russia
e. Portugal
Answer: e
Page: 86
Level of difficulty: Hard
37. Over the past three decades in the United States, the rich have grown richer and the middle class has
________.
a. stayed about the same
b. shrunk
c. increased slightly
d. matched the rich in terms of relative growth
e. been ignored because of problems with the poorer classes
Answer: b
Page: 86
Level of difficulty: Medium
38. ________ shapes the beliefs, values, and norms that largely define the tastes and preferences.
a. Marketing
b. The mass media
c. Government
d. Production innovation and engineering
e. Society
Answer: e
Page: 87
Level of difficulty: Medium
39. If a consumer lives the lifestyle of a “pleasure seeker” or goes on a “self-realization” quest, he or she is
expressing what is called ________.
a. views of others
b. views of society
c. views of themselves
d. views of organizations
e. views of the universe
Answer: c
Pages: 87–88
Level of difficulty: Easy
22
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
40. According to the information found in the social-cultural environment, with respect to views of others,
________ are considered to be things that allow people who are alone to feel they are not (e.g.,
television, home video games, and chat rooms on the Internet).
a. social surrogates
b. subliminal fantasies
c. relationship avoidance
d. primary products
e. secondary products
Answer: a
Page: 88
Level of difficulty: Medium
41. Today, corporations need to make sure that they are good corporate citizens and that their
consumer messages are honest. Such a view would be consistent with which of the following views?
a. Views of others.
b. Views of organizations.
c. Views of themselves.
d. Views of the universe.
e. Views of society.
Answer: b
Page: 88
Level of difficulty: Easy
42. People vary in their attitudes toward their society. ________ usually live more frugally, drive smaller
cars, and wear simpler clothing.
a. Makers
b. Escapers
c. Seekers
d. Changers
e. Developers
Answer: d
Page: 88
Level of difficulty: Hard
23
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
43. People vary in their attitudes toward society and react accordingly. ________ are a major market for
movies, music, surfing, and camping.
a. Makers
b. Preservers
c. Escapers
d. Changers
e. Developers
Answer: c
Page: 88
Level of difficulty: Easy
44. All of the following have been cited by the text as being among Americans’ core values EXCEPT
________.
a. they believe in work
b. they believe in getting married
c. they believe in giving to charity
d. they believe in being honest
e. they believe in sexual permissiveness
Answer: e
Page: 88
Level of difficulty: Easy
45. Which of the following would be the best illustration of a secondary belief or value?
a. Belief in work.
b. Belief in giving to charity.
c. Belief in getting married.
d. Belief in getting married early.
e. Belief in being honest.
Answer: d
Page: 88
Level of difficulty: Medium
46. Which of the following is by far the most popular American leisure activity in that it is preferred by 59
percent of adults who participate in such activities?
a. Gardening.
b. Walking for exercise.
c. Swimming.
d. Photography.
e. Jogging or running.
Answer: b
Page: 89
Level of difficulty: Medium
47. Each society contains ________, groups with shared values emerging from their special life
experiences or circumstances.
a. demographic segments
b. cliques
c. consumer bundles
d. subcultures
e. behavioral niches
Answer: d
Page: 89
Level of difficulty: Medium
24
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
48. Which of the following would be the best illustration of a subculture?
a. A softball team.
b. A university alumni association.
c. Teenagers.
d. A Boy Scout troop.
e. Frequent flyers.
Answer: c
Page: 89
Level of difficulty: Medium
49. All of the following EXCEPT ________ have been found to influence young people today and cause a
shift of secondary cores values for this group.
a. U2’s Bono.
b. Elvis Presley.
c. The NBA’s LeBron James.
d. Golf’s Tiger Woods.
e. Skateboarder Tony Hawk.
Answer: b
Page: 89
Level of difficulty: Easy
50. Although core values are fairly persistent, cultural swings do take place. ________ caused such a swing
in the 1960s.
a. Ford Motor Company
b. George McGovern
c. G.I. Joe action characters
d. The infomercial
e. The Beatles
Answer: e
Page: 89
Level of difficulty: Medium
51. Marketers need to be aware of threats and opportunities associated with four trends in the natural
environment. All of the following are among those trends EXCEPT ________.
a. the shortage of raw materials
b. the increased cost of energy
c. near 90 percent corporate support for “green causes”
d. increased pollution levels
e. the changing role of governments
Answer: c
Page: 90
Level of difficulty: Easy
52. With respect to the shortage of raw materials, air and water are classified as ________ resources.
However, as we know, problems are beginning to plague both our air and water quality.
a. infinite
b. near finite
c. finite renewable
d. finite nonrenewable
e. absolute
Answer: a
Page: 90
Level of difficulty: Medium
25
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
53. One finite nonrenewable resource, ________, has created serious problems for the world economy.
Because of anticipated shortages, investment and commodity markets have had wild swings.
a. water
b. air
c. sugar
d. coffee
e. oil
Answer: e
Page: 90
Level of difficulty: Easy
54. From a branding perspective, “green marketing” programs have not been entirely successful. ________
has been cited as one of the obstacles that must be overcome for “green marketing” programs to be
more successful.
a. Overexposure and lack of credibility
b. High cost
c. Poor promotions
d. Resistance by the youth segment in the marketplace
e. Lack of support by governmental agencies and concerns
Answer: a
Page: 91
Level of difficulty: Hard
55. Which of the following countries is noted for their “green movement” and support within its
government for environmental quality enhancement?
a. Mexico
b. China
c. Germany
d. England
e. Italy
Answer: c
Page: 91 Level of difficulty: Medium
56. The marketer should monitor the following trends in technology, EXCEPT ________, if progress
is to be made in business.
a. the pace of change
b. the difficulties found in sharing information
c. the opportunities for innovation
d. varying R&D budgets
e. increased regulation
Answer: b
Page: 92
Level of difficulty: Hard
57. According to some industry analysts and inventors, ________ will eventually eclipse the PC as our
most important technological device.
a. iPod
b. HDTV
c. holographic television
d. the mobile phone
e. solar-powered car
Answer: d
Page: 92
Level of difficulty: Medium
58. All of the following will most likely be among the advantages for a society that embraces
telecommuting as an employment/communication alternative EXCEPT ________.
a. reduction of auto pollution
b. bringing the family closer together
c. increased bonuses and compensation perks
d. creating more home-centered shopping
e. entertainment centered on the home environment
Answer: c
Page: 92
Level of difficulty: Medium
26
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
59. ________ legislation has as its purposes to protect companies from unfair competition, to protect
consumers from unfair business practices, and to protect the interests of society from unbridled
business behavior.
a. Business
b. Consumer
c. Bi-partisan
d. Activist
e. Global
Answer: a
Page: 94
Level of difficulty: Easy
60. An important force affecting business is the ________—a movement of citizens and government
organized to strengthen the rights and powers of buyers in relation to sellers.
a. lobbyist movement
b. consumerist movement
c. environmental movement
d. self-rights movement
e. ethical reform movement
Answer: b
Page: 95
Level of difficulty: Medium
27
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
Chapter 21: Tapping into Global Markets
GENERAL CONCEPT QUESTIONS
Multiple Choice
1. Red Bull has gained ________ of the worldwide energy drink market by skillfully connecting with
global youth.
a. 70 percent
b. 80 percent
c. 60 percent
d. 50 percent
e. 90 percent
Answer: a
Page: 667
Level of difficulty: Medium
2. Red Bull built buzz about the product through its ________.
a. “buzz marketing program”
b. “in program”
c. “marketing program”
d. “seeding program”
e. “advertising campaign”
Answer: d
Page: 667
Level of difficulty: Medium
3. A global industry is defined as ________.
a. an industry in which the strategic positions of competitors are fundamentally
affected by their overall global positions
b. an industry that operates in more than one country and captures R&D, marketing,
and other financial advantages in its costs and reputation.
c. an industry that operates in more than one country and has a strategic position in
many countries
d. a firm that operates in more than one country and has a sales and marketing staff
in those countries
e. an industry that has strategic positions in many countries but is not affected by
competition
Answer: a
Page: 668
Level of difficulty: Medium
28
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
4. A global firm is one that ________.
a. where the strategic positions of competitors are fundamentally affected by their
overall global positions
b. operates in more than one country and captures R&D, marketing, and other
financial advantages in its costs and reputation
c. operates in more than one country and has a sales and marketing staff in those
countries
d. operates in more than one country and has a sales and marketing staff in those
countries developing
e. has strategic positions in many countries but is not affected by competition
researching
Answer: b
Page: 668
Level of difficulty: Medium
5.
International trade in 2003 accounted for over ________ of U.S. GDP up from 11
percent in 1970.
a. one-third
b. one-eighth
c. one-half
d. one-quarter
e. 18 percent
Answer: d
Page: 668
Level of difficulty: Easy
6. Global firms plan, operate, and ________ their activities on a worldwide basis.
a. produce
b. coordinate
c. distribute
d. price
e. service
Answer: b
Page: 668
Level of difficulty: Easy
7. The major decisions in international marketing include which of the following steps?
a. Deciding whether to go abroad.
b. Deciding which markets to enter.
c. Deciding how to enter the market.
d. Deciding on the marketing program.
e. All of the above.
Answer: e
Page: 669
Level of difficulty: Medium
8. The internationalization process has four stages. These stages are ________.
a. no regular export activities
b. export via independent representatives (agents)
c. establishment of one or more sales subsidiaries
d. establishment of production facilities abroad
e. all are part of the internationalization process
Answer: e
Page: 670
Level of difficulty: Medium
29
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
9. Most firms work with an ________ and enter a nearby or similar country.
a. independent agent
b. contractual export department
c. import/export department
d. franchisee
e. management contract
Answer: a
Page: 670
Level of difficulty: Easy
10. A “waterfall” approach to international marketing is defined as ________.
a. countries that are gradually entered sequentially
b. countries in which the demand for the product is greatest is entered first
c. countries in which the demand for the product is greatest is entered last
d. countries in which the supply of raw material is greatest is entered first
e. countries are entered based upon ease of entry
Answer: a
Page: 671
Level of difficulty: Medium
11. A “sprinkler” approach to international marketing is defined as ________.
a. countries that are entered when timing is right
b. countries that are gradually entered sequentially
c. countries in which the supply of raw material is greatest is entered first
d. countries in which the demand for the product is greatest is entered first
e. many countries are entered simultaneously within a limited period of time
Answer: e
Page: 671
Level of difficulty: Medium
12. The developed nations and the prosperous parts of developing nations account for less
than ________ of the world’s population.
a. 10 percent
b. 15 percent
c. 20 percent
d. 25 percent
e. 30 percent
Answer: b
Page: 671
Level of difficulty: Easy
13. Marketers must change their conventional marketing to sell their products to
developing countries. One of the changes that marketers can make is to ________.
a. reduce the price of the product but increase the packaging size
b. reduce the size but keep the pricing the same
c. reduce the price of the product
d. reduce the size and price of the packaging
e. increase the price and the packaging size because these countries have never seen
the product before
Answer: d
Page: 671
Level of difficulty: Medium
30
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
14. Factors that influence the “attractiveness” of a country to enter include which of the
following?
a. product, geography, income and population, political climate, and other factors
b. product, geography, income, climate, and source of income
c. population, incomes, competition, and political climate
d. incomes, profit potentials, competition, and climate
e. incomes, families, competition, and cultural differences
Answer: a
Page: 671
Level of difficulty: Medium
15. Regional economic integration is defined as ________.
a. agreements between individual firms for the sake of commerce
b. trading agreements between individual countries
c. trading agreements between individual firms
d. trading agreements between countries and firms
e. trading agreements between blocs of countries
Answer: e
Page: 673
Level of difficulty: Easy
16. The European Union founded in 1957 added ________ in May 2004 bringing its total membership to
25 countries.
a. 10 countries
b. 5 countries
c. 20 countries
d. 6 countries
e. 4 countries
Answer: a
Page: 673
Level of difficulty: Easy
17. NAFTA established a free trade zone between what three countries?
a. Canada, Mexico, and South America
b. Canada, Mexico, and Peru
c. Mexico, South America, and the United States
d. Canada, Mexico, and the United States
e. Canada, Mexico, and Japan
Answer: d
Page: 673
Level of difficulty: Medium
18. MERCOSUL is a free trade zone linking which of the following South American
countries?
a. Mexico, Japan, Brazil, and Paraguay
b. Mexico, Brazil, and Paraguay
c. Brazil, Argentina, and Paraguay
d. Canada, Brazil, and Paraguay
e. Brazil, Argentina, Paraguay, and Uruguay
Answer: e
Page: 673
Level of difficulty: Medium
31
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
The five modes of entry into foreign markets generally flow by increasing
19.
commitment, risk, control, and profit potential as follows ________.
a. indirect exporting, direct exporting, licensing, joint ventures, and direct investment
b. direct investment, joint ventures, licensing, direct exporting, and indirect
exporting.
c. direct investment, joint ventures, and licensing
d. direct investment, joint ventures, licensing, and indirect exporting
e. none of the above
Answer: a
Page: 674
Level of difficulty: Hard
20. In choosing which countries to invest in, companies sometimes choose psychic
proximity to their own country. Psychic proximity can best be defined as ________.
a. countries close to the “host” country in which the company feels comfortable with
the language, laws, and culture
b. countries that “mimic” the host country in terms of language and culture
c. countries that the host country’s management team have visited
d. countries close to the “host” country in which the company feels that they can
infiltrate quickly and profitable
e. countries close to the “host” country in which the company can easily transport
their products
Answer: a
Page: 674
Level of difficulty: Medium
21. The normal way to get involved in an international market is through exporting.
Occasional exporting is defined as ________.
a.
b.
c.
d.
e.
when the company carries on exporting activities on the behalf of others
when the company makes a commitment to expand into particular markets
when the company works through independent agents
when the company hires domestic-based agents to negotiate foreign purchases
a passive level of involvement in which the company exports its products from
time to time
Answer: e
Page: 674
Level of difficulty: Medium
22. Active exporting takes place when the company ________ to expand into a particular market.
a.
b.
c.
d.
e.
forms a “skunk” group
forms an export department
hires an agent
makes an effort
makes a commitment
Answer: e
Page: 674
Level of difficulty: Easy
32
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
23. Domestic-based export merchants ________.
a. buy the manufacturer’s products and then sell them abroad
b. buy the manufacturer’s products then sell them in the host country
c. buy the manufacturer’s products then fine agents and customers in foreign
countries
d. seek and negotiate foreign purchases
e. carry on exporting activities on behalf of several producers
Answer: a
Page: 674
Level of difficulty: Hard
24. Domestic based export agents perform a valuable service for the companies seeking to enter foreign markets. The primary
function of these agents is to ________.
a. carry on exporting activities on behalf of several producers
b. buy the manufacturer’s products and then sell them abroad
c. buy the manufacturer’s products then sell them in the host country
d. seek and negotiate foreign purchases and are paid a commission on those sales
e. export products to foreign countries
Answer: d
Page: 674
Level of difficulty: Medium
25. Company’s prefer to enter a country that ranks high on market attractiveness, low in
market risks and ________.
a. in which it would possesses a competitive advantage
b. turn a quick profit
c. able to dominate its foreign competitors through superior product design and
performance
d. gain a dominate market share within one year of exporting
e. increase its foreign market share by 50 percent in one year
Answer: a
Page: 674
Level of difficulty: Medium
26. Indirect export has two advantages for the firm. First in involves less investment for
the firm and secondly it ________.
a. involves less paperwork
b. involves less intrusion by the government
c. involves less risk
d. involves less people to manage the process
e. involves less products and product lines
Answer: c
Page: 675
Level of difficulty: Medium
27. A company can carry on direct exporting in several ways. These include domesticbased export department or division, overseas sales branch or subsidiary, traveling
export sales representatives, and ________.
a. foreign-based distributors or agents
b. marketing departments based in the foreign country
c. export merchants in foreign countries
d. export management companies
e. none of the above
Answer: a
Page: 675
Level of difficulty: Medium
33
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
28. According to the text, Shaper Image receives more than ________ of its online
business form overseas customers.
a. 15 percent
b. 30 percent
c. 25 percent
d. 40 percent
e. 10 percent
Answer: c
Page: 675
Level of difficulty: Hard
29. “Going abroad” using the Internet has its challenges. One of the challenges that a
global marketer may run up against when using the Web are ________.
a. cultural restrictions
b. language barriers
c. pricing procedures
d. monetary exchanges
e. logistical limitations
Answer: a
Page: 675
Level of difficulty: Medium
30. Licensing is a simple way to become involved in international marketing. In
licensing, the licensor issues a license to a foreign company to use a process,
trademark, patent, or trade secret for a(n) ________.
a. limited period of time
b. fee or royalty
c. exchange of information or propriety information
d. exchange for access to the market place
e. exchange for “their” process, trademark, patent, or secret
Answer: b
Page: 676
Level of difficulty: Easy
31. Companies such as Marriott and Hyatt sell a variation of the licensing agreement
called ________ to the owners of foreign hotels to manage these businesses for them
in foreign countries.
a. contract manufacturing
b. management contracts
c. franchising
d. hotel management licensing
e. none of the above
Answer: b
Page: 676
Level of difficulty: Medium
34
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
32. In ________, the firm hires local manufacturers to produce the product. This gives
the company less control over the manufacturing process and loss of profits of the
manufacturing efficiencies.
a. contract manufacturing
b. management contracts
c. licensing
d. franchising
e. none of the above
Answer: a
Page: 676
Level of difficulty: Easy
33. A company can enter a foreign market through ________, which is a complete form
of licensing in which the company offers a complete brand concept and operating
system designed to ensure that the ________ operates according to the requirements
of the licensor.
a. contract manufactures/licensor
b. contract management/firm
c. management contracts/firm
d. joint venture/firm
e. franchising/franchisor
Answer: e
Page: 676
Level of difficulty: Medium
34. The definition of a joint venture company is one ________.
a. in which foreign inventors join with local investors where they share ownerships
and control
b. in which two people or more own the firm jointly
c. where foreign investors join with others to own the firm
d. where ownership by local and distant investors in share ownership of a franchise
e. where ownership is by investors of foreign firms
Answer: a
Page: 676
Level of difficulty: Medium
35. A joint venture may be necessary or desirable for economic or political reasons.
Additionally, a foreign firm might lack the ________, or managerial resources to
undertake the venture alone.
a. resource, competency
b. financial, physical
c. financial, willingness
d. political, financial
e. political, competency
Answer: b
Page: 677
Level of difficulty: Medium
35
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
36. In an adapted marketing mix, the producers’ ________ the marketing program to
each target market.
a. reduce the importance of each element of the marketing program to adjust for cost
differential between countries
b. decide on which element of the marketing mix to change/country/target market
prior to entering the country
c. adapt the communications message to the host country
d. change only one element of the marketing mix/country
e. adjust
Answer: e
Page: 677
Level of difficulty: Medium
37. International companies must decide on how much to adapt their marketing strategy
to local conditions. At one extreme are companies that use a globally standardized
marketing mix worldwide. A standardized marketing mix includes ________.
a. a concentric strategy which includes the product, integrated marketing
communications mix, and distribution strategy
b. standardization of the product, communication, and distribution channels
promising lowest costs.
c. changes only to the product keeping distribution channels and marketing
communications consistent across countries
d. changing only the distribution channels to accommodate the host country
e. changes only to the product and communication message
Answer: b
Page: 677
Level of difficulty: Medium
38. The ultimate form of foreign involvement is direct ownership of foreign-based
assembly or manufacturing facilities. One of the advantages of direct ownership can
include economies of scale, creating jobs in the host country, developing deeper
relations with local suppliers etcetera and the firm ________.
a. retains full control over its investment
b. reviews global outreach projections
c. redefines the business concept
d. reviews the successes from e-commerce
e. receives no disadvantages to direct investment
Answer: a
Page: 677
Level of difficulty: Medium
39. Hofstede identifies four cultural dimensions that can differentiate countries. These are
individualism versus collectivism, high versus low power distances, masculine versus
feminine, and ________.
a. customer relationship management versus power distances
b. strategic management versus marketing management
c. weak versus strong uncertainty avoidance
d. total quality management versus JIT deliveries
e. marketing management versus customer relationships
Answer: c
Page: 677
Level of difficulty: Medium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
40. Straight extension of the product means ________.
a. introducing the product to the foreign market without any changes to the product.
b. introducing the product to the foreign market without major changes to the
product
c. introducing the product to the foreign market with major changes to the product
d. introducing the product to the foreign market with no major marketing program
e. not introducing the product to the foreign market until changes have been made
Answer: a
Page: 678
Level of difficulty: Medium
41. An advantage of global marketing is that it can lower marketing costs, has economies
of scale in production and distribution, can produce consistency in brand image, has
the ability to leverage good ideas quickly and efficiently, and ________.
a. is easier to adapt to foreign countries
b. allows for the same message to be used worldwide
c. allows for individual countries to add their specific needs to the message
d. is easier for corporations to evaluate the marketing message
e. allows for uniformity of marketing practices
Answer: e
Page: 678
Level of difficulty: Hard
42. Product adaptation involves ________.
a. altering the product to meet local conditions or preferences
b. altering the product to meet minimum acceptable standards
c. changing the product periodically
d. upgrading the product on a periodic basis
e. changing the product to meet competition
Answer: a
Page: 679
Level of difficulty: Medium
43. A firm can successful introduce four versions of its products into a foreign country or
a firm may select one of these for inclusion. These versions include ________.
a. customer version, regional version, and city version
b. customer version, country version, and retailer version
c. regional version, country version, city version, and retailer version
d. customer version, regional version, city version, and retailer version
e. regional version, country version, city version, and market versions
Answer: c
Pages: 680–681
Level of difficulty: Easy
44. Product invention consists of creating something new. Backward invention is
reintroducing earlier product forms that are well adapted to a foreign country’s needs.
Forward invention is ________.
a. creating a new product to meet a need in another country
b. creating a new product to meet the need in the host country
c. understanding the differences between host and foreign country markets
d. increasing the control over the development of new products
e. inventing something that yet has a “market”
Answer: a
Page: 681
Level of difficulty: Medium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
45. Companies can run the same marketing communications programs as used in the
home market or change them for each local market, a process called ________.
a. product communications
b. brand communications
c. dual adaptation
d. marketing communications
e. communication adaptation
Answer: e
Page: 682
Level of difficulty: Medium
46. Many multinationals are plagued by the gray market problem. The gray market
consists of ________.
a. the marketing of products to older consumers
b. branded products diverted from normal distribution channels in the country of
product origin
c. branded products diverted from one country to another
d. products being repackaged from the intended country to a diverted country
e. products not having full warranties by the manufacturer
Answer: b
Page: 682
Level of difficulty: Medium
47. If a company adapts or changes both the product and the communications, the
company engages in a process called ________.
a. straight extension
b. marketing communication
c. product adaptation
d. dual adaptation
e. full adaptation
Answer: d
Page: 682
Level of difficulty: Medium
48. The use of media requires international adaptation because media availability varies from country to country. Norway,
Belgium, and France do not allow cigarettes and alcohol to be advertised on TB. Austria and Italy regulate TV advertising
________.
a.
between the hours of 9 p.m. and 6 a.m.
b. to children
c. for those under the age of majority
d. regarding content and clarity
e. using women in advertising
Answer: b
Page: 683
Level of difficulty: Medium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
49. A Gucci bag sells for $120 in Italy and $240 in the United States. This is an example
of when a firm tries to sell its products abroad. This phenomenon is called a
________.
a. strategic marketing pricing problem
b. market pricing problem
c. tactical pricing problem
d. price escalation problem
e. transfer pricing problem
Answer: d
Page: 684
Level of difficulty: Medium
50. A firm that charges a price to another unit in the company sets the ________ price for goods that it ships to its foreign
subsidiaries.
a. original price
b. transfer price
c. margin price
d. break-even price
e. customer value price
Answer: b
Page: 684
Level of difficulty: Medium
51. The cost escalation problem exists for multinationals and varies from country to
country; the question is: How to set prices in different countries? Companies have
three choices. One is to set a uniform price everywhere, two is to set a market-based
price in each country, and three is to ________.
a. set a final “cost plus” price in each country
b. set a cost-based price in each country
c. let the market dictate price/country
d. vary the price/market/country on a daily basis to reflect consumer demand
e. set the transfer price at marginal costs = marginal revenue
Answer: b
Page: 684
Level of difficulty: Hard
52. In 2000 Stelco a Canadian steelmaker, successfully fought dumping changes against
steelmakers in Brazil and other countries. “Dumping” is defined or occurs when
________.
a. a company charges either less than its costs or less than it charges in its home
market
b. the company charges less that its costs but more than it charges in its home
market
c. the company’s pricing plans are below current domestic prices
d. a company must increase its prices/product prior to importing the product
e. a company unloads an excess supply of the product at the best possible prices to
the consumer
Answer: a
Page: 684
Level of difficulty: Easy
39
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
53. The “whole channel concept for international marketing” includes the following
steps________.
a. seller to seller’s international marketing headquarters to channels between nations
to channels within foreign nations to final buyers
b. seller to marketing headquarters to channels within foreign markets to final buyers
c. sellers to channels between nations to final buyers
d. sellers to channels within foreign nations to final buyers
e. sellers to international markets to channels within foreign nations to final buyers
Answer: a
Page: 685
Level of difficulty: Hard
54. In an increasingly connected, highly competitive global marketplace, government
officials, and marketers are concerned with how attitudes and beliefs about their
country affect consumer and business decision-making. ________is(are) the mental
associations and beliefs triggered by a country.
a. Corporate ownership of the firm
b. Materials used in manufacturing
c. Brand names and trademarks
d. Country-of-origin perceptions
e. Competitive positions in the marketplace
Answer: d
Page: 686
Level of difficulty: Medium
55. A company has several options when its products are competitively priced but their
place of origin turns consumers off. The company can consider ________.
a. re-packaging the product to disguise the country of origin
b. co-branding
c. reducing their country of origin mentions in their advertising
d. re-branding the product to disguise the country of origin
e. co-production with a foreign company that has a better name.
Answer: e
Page: 687
Level of difficulty: Medium
56. Most brands are adapted to some extent to reflect significant differences in ________,
________, competitive forces, and the legal and political environment.
a. consumer behavior, brand development
b. business mission, brand development
c. strategy and consumer behavior
d. programs and marketing communications
e. political and social mores differences
Answer: a
Page: 677
Level of difficulty: Medium
40
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
57. Disadvantages to global marketing include differences in consumer needs, wants, and
usage patterns for products; difference in consumer response to marketing-mix
elements; differences in brand and product development and the competitive
environment; and ________.
a. differences in marketing institutions
b. differences in language and consumer expectations
c. differences in product performance
d. differences in management’s reaction to the marketplace
e. none of the above
Answer: a
Page: 678
Level of difficulty: Hard
58. Marketers must also adapt sales promotion techniques to different markets. Several European countries have laws preventing
or limiting sales promotion tools such as discounts. In Germany, Lands’ End could not advertise its ________.
a. woman’s bathing suits
b. sale price
c. close-out specials
d. end-of-the-season sale
e. money-back guarantee
Answer: e
Page: 683
Level of difficulty: Hard
59. Companies can manage their international marketing activities in three ways. These
include, through export departments, international divisions, ________.
a. or a global organization
b. or from a fixed corporate headquarters
c. or through a strong marketing department in the “host” country
d. and through local marketing efforts
e. none of the above
Answer: a
Page: 688
Level of difficulty: Medium
60. Bartlett and Ghoshal have identified three organizational strategies for international firms. These
are: (1) a global strategy treats the world as a single market; (2) a multinational strategy treats the
world as a portfolio of national opportunities; and (3) ________.
a. a local strategy standardizes all of the local elements
b. the marketing strategy identifies those elements assigned to a country and uses
those elements plus corporate’s contribution in the marketing plan
c. a “glocal” strategy standardizes certain core elements and localizes other elements
d. assumes that there are no “local” or multinational differences in formulating the
marketing mix
e. none of the above
Answer: c
Pages: 689–690
Level of difficulty: Hard
41
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
Chapter 6: Analyzing Consumer Markets
GENERAL CONCEPT QUESTIONS
Multiple Choice
61. Marketers are always looking for emerging trends that suggest new marketing
opportunities. One such trend is the “metrosexual.” Which of the following items
would the metrosexual most likely have some interest for?
a. An IBM computer.
b. Tickets to WWF wrestling.
c. Saxophone lessons.
d. An all-over body spray by Axe.
e. Cowboy boots made from elephant hide.
Answer: d
Page: 173
Level of difficulty: Medium
2. ________ is the study of how individuals, groups, and organizations select, buy, use,
and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
a. Target marketing
b. Psychographic segmentation
c. Psychology
d. Consumer behavior
f. Product differentiation
Answer: d
Page: 173
Level of difficulty: Easy
3. The fundamental determinant of a person’s wants and behavior is the person’s
________.
a. psyche
b. national origin
c. culture
d. peer group
e. family tree
Answer: c
Page: 174
Level of difficulty: Medium
4. A child growing up in the United States is exposed to all of the following values
EXCEPT ________.
a. achievement and success
b. activity
c. efficiency and practicality
d. the importance of the group in daily life
42
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
e. freedom
Answer: d
Page: 174
Level of difficulty: Medium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
5.
Which of the following would be the best illustration of a subculture?
a. A religion.
b. A group of close friends.
c. Your university.
d. A fraternity or sorority.
e. Your occupation.
Answer: a
Page: 174
Level of difficulty: Hard
6. With respect to facts about the American consumer, which of the following consumer electronics
is owned by the vast majority of consuming households with a 93 percent reporting ownership?
a. A personal computer.
b. TiVo DVR.
c. A cellular phone.
d. A microwave oven.
e. A VCR.
Answer: e
Page: 175
Level of difficulty: Hard
7. ________ is defined as being relatively homogeneous and enduring divisions in a
society, which are hierarchically ordered and whose members share similar values,
interests, and behavior.
a. Culture
b. Subculture
c. Social class
d. The family
e. A group
Answer: c
Page: 175
Level of difficulty: Medium
8. Social classes show distinct product and brand preferences in all the following
areas EXCEPT ________.
a. clothing
b. home furnishings
c. leisure activities
d. automobiles
e. fast food
Answer: e
Page: 176
Level of difficulty: Medium
9. A person’s ________ consist(s) of all the groups that have a direct (face-to-face) or
indirect influence on his/her attitudes or behavior.
a. culture
b. subculture
c. psychographics
d. reference groups
e. demographics
Answer: d
Page: 177
Level of difficulty: Medium
10. A(n) ________ group is one whose values or behavior an individual rejects.
44
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
a. aspirational
b. disassociative
c. membership
d. primary
e. procreational
Answer: b
Page: 177
Level of difficulty: Easy
11. If a direct mail marketer wished to direct promotional efforts toward the family of
________, efforts need to be directed toward parents and siblings of the family
members.
a. orientation
b. procreation
c. immediacy
d. intimacy
e. reference
Answer: a
Page: 177
Level of difficulty: Medium
12. Expected to account for a quarter of the U.S. population by 2050, ________ are the
fastest growing minority.
a. African Americans
b. Asian Americans
c. Hispanic Americans
d. European Americans
e. Arabic Americans
Answer: c
Page: 178
Level of difficulty: Easy
13. The dominant cohort, with respect to families, for the next fifty years may very well
be the ________ cohort.
a. married-couple household
b. single adults
c. single seniors
d. married seniors
e. married-couples with parents living with them
Answer: b
Page: 179
Level of difficulty: Hard
14. Husbands and wives display different decision-making roles in most families. The trend for
dominant decision making in families is for ________ to be responsible for most of the decisions.
a. the husband
b. the wife
c. joint decision making (both husband and wife)
d. holistic decision making
e. child-oriented decision making
Answer: c
Page: 179
Level of difficulty: Medium
45
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
15. The Disney Channel has become the company’s cash cow for its ability to reach the
underserved ________ market—8- to 14-year-olds.
a. teen
b. twixt
c. midd. tween
e. young adult
Answer: d
Page: 179
Level of difficulty: Medium
16. People choose products that reflect and communicate their role and actual or desired
________ in society.
a. group
b. status
c. attitudes
d. beliefs
e. feelings
Answer: b
Page: 180
Level of difficulty: Medium
17. Consumption may be shaped by ________ (such as marriage, childbirth, or divorce).
a. the psychological life cycle
b. the product life cycle
c. the life/death life cycle
d. post-puberty cycles
e. critical life events or transitions
Answer: e
Page: 181
Level of difficulty: Medium
18. Product choice is greatly affected by economic circumstances. All of the following
would be among those circumstances EXCEPT ________.
a. spendable income
b. savings and assets
c. debts
d. occupation
e. borrowing power
Answer: d
Page: 182
Level of difficulty: Easy
19. ________ is a set of distinguishing human psychological traits that lead to relatively
consistent and enduring responses to environmental stimuli.
a. Image
b. Personality
c. Beliefs
d. Heredity
e. Culture
Answer: b
Page: 182
Level of difficulty: Medium
46
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
20. When the Marlboro Man was depicted in advertising as a rugged outdoor, tough
cowboy type, this was done to establish what is called a ________.
a. trademark
b. brand name
c. brand personality
d. psychological approach to advertising
e. brand reference
Answer: c
Page: 182
Level of difficulty: Medium
21. ________ portrays the “whole person” interacting with his or her environment.
a. Attitude
b. Reference group
c. Lifestyle
d. Culture
e. Subculture
Answer: c
Page: 183
Level of difficulty: Medium
22. Consumers today are experiencing a time famine because of their busy lifestyles. One
way to avoid the difficulties of time famine, which is of particular interest to
marketers, is ________.
a. to set fewer goals
b. to multitask
c. to give in to personal burdens
d. to report frustration to management
e. to develop a callous attitude toward marketers
Answer: b
Page: 183
Level of difficulty: Hard
23. With respect to understanding consumer behavior, there are four key psychological
processes. All of the following would be among those processes EXCEPT
________.
a. motivation
b. perception
c. learning
d. self-reliance
e. memory
Answer: d
Page: 184
Level of difficulty: Easy
24. A ________ when it is aroused to a sufficient level of intensity.
a. need becomes a motive
b. motive becomes a need
c. desire becomes a reality
d. unfulfilled demand becomes a crisis
e. personal demand exceeds the ability to rationally reject
Answer: a
Page: 184
Level of difficulty: Hard
47
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
25. ________ assumed that the psychological forces shaping people’s behavior are
largely unconscious, and that a person cannot fully understand his or her own
motivations.
a. Abraham Maslow
b. Frederick Herzberg
c. Sigmund Freud
d. John Cacioppo
e. Karl Marx
Answer: c
Page: 184
Level of difficulty: Medium
26. Frederick Herzberg developed a ________ that distinguishes
dissatisfiers and satisfiers.
a. trait-role theory
b. psychological constraint theory
c. probability scale
d. leadership model
e. two-factor theory
Answer: e
Page: 185
Level of difficulty: Medium
27. At the top of Maslow’s hierarchy of needs (shown as a pyramid in the text) are
________ needs.
a. esteem
b. self-actualization
c. social
d. safety
e. physiological
Answer: b
Page: 185
Level of difficulty: Medium
28. It has been estimated that the average person is exposed to over ________ ads or
brand communications a day.
a. 1,500
b. 1,300
c. 1,000
d. 800
e. 500
Answer: a
Page: 186
Level of difficulty: Hard
29. ________ is the tendency to interpret information in a way that will fit our
preconceptions.
a. Selective retention
b. Cognitive dissonance
c. Selective distortion
d. Subliminal perception
e. Discrimination
Answer: c
Page: 186
Level of difficulty: Medium
48
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
30. A cigarette ad has a picture of a young man laying on his back and dreamily looking
at clouds in the sky. Though not readily obvious to the casual reader, there is a
message in the clouds that says “r-e-l-a-x.” This would be an example of which of
the following?
a. Selective distortion
b. Cognitive dissonance
c. Selective retention
d. Subliminal perception
e. Short-term memory
Answer: d
Page: 187
Level of difficulty: Hard
31. A ________ is a strong internal stimulus impelling action.
a. cue
b. drive
c. reinforcement
d. discrimination
e. belief
Answer: b
Page: 187
Level of difficulty: Medium
32. ________ teaches marketers that they can build demand for a product by associating
it with strong drives, using motivating cues, and providing positive reinforcement
a. Demand theory
b. Learning theory
c. Economic theory
d. Psychological theory
e. Demographic theory
Answer: b
Page: 187
Level of difficulty: Medium
33. As Rita scans the yellow pages section of her phone book looking for a florist, she
sees several others products and services advertised. Though interesting on first
glance, she quickly returns to her primary task of finding a florist. The items that
distracted her from her search were most likely stored in which of the following
types of memory?
a. Short-term memory
b. Long-term memory
c. Middle memory
d. Subconscious memory
e. Subliminal memory
Answer: a
Page: 187
Level of difficulty: Medium
49
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
34. Brand associations consist of all the brand-related thoughts, feelings, perceptions,
images, experiences, beliefs, attitudes, and so on that become linked to the brand
________.
a. stimulus
b. link
c. connection
d. personality
e. node
Answer: e
Page: 188
Level of difficulty: Hard
35. In general, the more attention placed on the meaning of information during
________, the stronger the resulting associations in memory will be.
a. encoding
b. decoding
c. classification
d. retrieval
e. memorization
Answer: a
Page: 189
Level of difficulty: Medium
36. Repeated exposures to information provide greater opportunity for processing and
thus the potential for ________.
a. more profits
b. more sales
c. stronger associations
d. increased brand personality
e. more one-to-one relationships
Answer: c
Page: 190
Level of difficulty: Medium
37. Cognitive psychologists believe that memory is ________, so that once information
becomes stored in memory, its strength of association decays very slowly.
a. very limited
b. somewhat limited
c. fluid
d. often reflective
e. extremely durable
Answer: e
Page: 191
Level of difficulty: Medium
38. The five-stage model of the consumer buying process includes all of the following
stages EXCEPT ________.
a. problem recognition
b. information search
c. social interaction
d. purchase decision
e. influencer
Answer: c
Page: 191
Level of difficulty: Easy
50
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
39. The buying process starts when the buyer recognizes a _________.
a. product
b. an advertisement for the product
c. a salesperson from a previous visit
d. problem or need
e. an internal cue
Answer: d
Page: 191
Level of difficulty: Medium
40. Which of the following is considered to be a more advanced form of information
search wherein the person might phone friends or go online to secure information
about a product or service?
a. Heightened attention
b. Short-term memory processing
c. Subliminal processing of information
d. Long-term memory processing
e. Active information search
Answer: e
Pages: 191–192
Level of difficulty: Hard
41. Of key interest to marketers are the major informational sources to which the
consumer will turn and the relative importance of each. Which of the following
would be considered to be an experiential information source?
a. Consumer-rating organizations.
b. The mass media.
c. Acquaintances.
d. Web sites.
e. Using the product itself.
Answer: e
Page: 192
Level of difficulty: Medium
42. Which of the following is considered to be biggest single source of consumer
information from a commercial source (over 40 percent of car buyers use this source
to gather information)?
a. The U.S. Chamber of Commerce
b. J.D. Power & Associates
c. Consumer Reports
d. The Better Business Bureau
e. Underwriter’s Laboratory
Answer: c
Page: 192
Level of difficulty: Medium
43. Brands that meet consumers’ initial buying criteria are called the ________.
a. total set
b. awareness set
c. consideration set
d. choice set
e. decision set
Answer: c
Page: 192
Level of difficulty: Easy
51
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
44. With respect to consumer decision making, the ________ is the set of strong
contenders from which one will be chosen as a supplier of a good or service.
a. total set
b. awareness set
c. consideration set
d. choice set
e. decision set
Answer: d
Page: 192
Level of difficulty: Medium
45. A(n) ________ is a descriptive thought that a person holds about something.
a. attitude
b. belief
c. desire
d. feeling
e. emotion
Answer: b
Page: 193
Level of difficulty: Medium
46. A(n) ________ puts people into a frame of mind: liking or disliking an object,
moving toward or away from it.
a. attitude
b. belief
c. feeling
d. position
e. stance
Answer: a
Page: 194
Level of difficulty: Medium
47. The expectancy-value model of attitude formation posits that consumers evaluate
products and services by combining their ________.
a. needs
b. wants
c. desires
d. brand beliefs
e. consuming attitudes
Answer: d
Page: 194
Level of difficulty: Medium
48. All of the following would be considered to be strategies for approaching consumers
who had rejected your company’s model of a product for another competitive brand
EXCEPT ________.
a. redesign your company’s product
b. alter beliefs about your company’s brand
c. covertly alter the qualitative data about your product
d. alter beliefs about competitors’ brands
e. call attention to neglected attributes
Answer: c
Pages: 195–196
Level of difficulty: Medium
52
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
49. Customer value analysis reveals the company’s strengths and weaknesses relative to
various competitors. Which of the following would be considered to be the first step
in this process?
a. Monitor customer values over time.
b. Assess the quantitative importance of the different attributes.
c. Assess the company and competitors’ performances on customer values.
d. Identify the major attributes customers value.
e. Examine customer ratings of the company and competitors.
Answer: d
Page: 196
Level of difficulty: Medium
50. With respect to consumer purchase intention, all of the following would be among
the sub-decisions made by consumers EXCEPT ________.
a. emotional value
b. brand
c. dealer
d. timing
e. payment method
Answer: a
Pages: 196–197
Level of difficulty: Medium
51. With the ________ heuristic, the consumer sets a minimum acceptable cutoff level
for each attribute and chooses the first alternative that meets the minimum standard
for all attributes.
a. conjunctive
b. lexicographic
c. elimination-by-aspects
d. primary
e. secondary
Answer: a
Pages: 197
Level of difficulty: Hard
52. Even if consumers form brand evaluations, two general factors can intervene
between the purchase intention and the purchase decision. One of these is
unanticipated situational factors. What is the second factor?
a. Amount of purchasing power.
b. Attitudes of others.
c. Short-term memory capabilities.
d. Ability to return merchandise.
e. The self-concept.
Answer: b
Pages: 197
Level of difficulty: Medium
53. ________ risk occurs if the product fails to perform up to expectations.
a. Physical
b. Financial
c. Social
d. Psychological
e. Functional
Answer: e
Page: 198
Level of difficulty: Hard
53
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
54. If performance meets consumer expectations, the consumer is ________.
a. delighted
b. satisfied
c. disappointed
d. surprised
e. overwhelmed
Answer: b
Page: 198
Level of difficulty: Easy
55. A key driver of sales frequency is the ________ rate.
a. product consumption
b. disposal
c. refusal
d. utility
e. option
Answer: a
Page: 199
Level of difficulty: Easy
56. The level of engagement and active processing undertaken by the consumer in
responding to a marketing stimulus is called ________.
a. elaboration likelihood
b. consumer disengagement
c. consumer involvement
d. variety-seeking
e. low-involvement
Answer: c
Page: 200
Level of difficulty: Medium
57. If a consumer is persuaded to buy a product by a message that requires little thought
and is based on an association with a brand’s positive consumption experiences from
the past, the consumer used a ________ to arrive at this purchase decision.
a. central route
b. peripheral route
c. behavioral route
d. subjective route
e. objective route
Answer: b
Page: 200
Level of difficulty: Hard
58. With the ________, predictions of usage are based on quickness and
ease of use.
a. availability heuristic
b. representative heuristic
c. anchoring heuristic
d. adjustment heuristic
e. semantic heuristic
Answer: a
Page: 201
Level of difficulty: Medium
54
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
59. Ben always reaches for the bright blue and yellow box of Ritz crackers when he
visits the snack food aisle in the grocery store. He rarely even reads the box or
checks the price. Which of the following heuristics is most likely being used by
Ben?
a. Availability
b. Representative
c. Anchoring
d. Adjustment
e. Semantic
Answer: b
Page: 201
Level of difficulty: Hard
60. ________ refers to the manner by which consumers code, categorize, and evaluate financial
outcomes of choices.
a. Cost accounting
b. Financial accounting
c. Behavioral accounting
d. Mental accounting
e. Factual accounting
Answer: d
Page: 202
Level of difficulty: Medium
55
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
Chapter 7: Analyzing Business Markets
GENERAL CONCEPT QUESTIONS
Multiple Choice
1. To create and capture value, sellers need to understand business organizations’ needs,
resources, policies, and ________.
g. demands
h. protocols
i. strategies
j. buying procedures
k. personnel policies
Answer: d
Page: 209
Level of difficulty: Easy
62. Webster and Wind define ________ as the decision-making process by which formal
organizations establish the need for purchased products and services and identify,
evaluate, and choose among alternative brands and suppliers.
a. marketing channels
b. organizational buying
c. demand-oriented buying
d. purchasing
e. inventory control
Answer: b
Page: 210
Level of difficulty: Medium
63. The ________ consists of all the organizations that acquire goods and services used
in the production of other products or services that are sold, rented, or supplied to
others.
a. business market
b. consumer market
c. e-commerce market
d. global market
e. supplier market
Answer: a
Page: 210
Level of difficulty: Medium
56
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
64. Business markets have several characteristics that contrast sharply with those of
consumer markets. All of the following would be among those characteristics
EXCEPT ________.
a. fewer, larger buyers
b. close supplier-customer relationship
c. professional purchasing
d. inverted demand
e. multiple sales calls
Answer: d
Pages: 210–211
Level of difficulty: Hard
65. All of the following would be among the major industries that make up the business
market EXCEPT ________.
a. agriculture, forestry, and fisheries
b. manufacturing
c. construction
d. banking, finance, and insurance
e. the Internet
Answer: e
Page: 210
Level of difficulty: hard
66. Trained purchasing agents, who must follow their organization’s ________, often
purchase business goods.
a. culture
b. past purchasing history
c. purchasing policies, constraints, and requirements
d. needs
e. financial budgets
Answer: c
Page: 211
Level of difficulty: Medium
67. Ultimately, the amount of steel sold to General Motors depends on the consumer’s
demand for GM cars and trucks. From the standpoint of the steel manufacturer, which
of the following demand forms is most pertinent?
a. Derived demand
b. Inelastic demand
c. Geographic demand
d. Relational demand
e. Static demand
Answer: a
Page: 211
Level of difficulty: Hard
68. The demand for business goods is ultimately derived from the demand for ________.
a. raw materials
b. consumer goods
c. electronics
d. business solutions
e. e-commerce
Answer: b
Page: 211
Level of difficulty: Easy
57
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
69. The business buyer faces many decisions in making a purchase. The number of
decisions depends on the buying situation. All of the following examples are
appropriate to the preceding EXCEPT ________.
a. complexity of the problem being solved
b. newness of the buying requirement
c. number of people involved
d. applicability of situation to mission statement
e. time required
Answer: d
Page: 212
Level of difficulty: Hard
70. The purchasing department buys office supplies on a routine basis. This type of
purchase is classified as a ________.
a. straight rebuy
b. modified rebuy
c. new task
d. secondary purchase
e. preordained purchase
Answer: a
Page: 212
Level of difficulty: Easy
71. There are a series of guidelines for selling to small businesses. Which of the
following should not be among those guidelines?
a. Don’t waste their time.
b. Do keep it simple.
c. Do use the Internet.
d. Don’t forget about direct contact.
e. Do lump small and midsize businesses together for efficiency sake.
Answer: e
Page: 212
Level of difficulty: Medium
72. The business buyer makes the fewest decisions in the ________.
a. modified rebuy
b. regular buy
c. straight rebuy
d. new rebuy
e. new task buy
Answer: c
Page: 213
Level of difficulty: Medium
73. Many business buyers prefer to buy a total solution to a problem from one seller.
________ is the correct term for this process.
a. Channel consolidation
b. Systems buying
c. Vertical buying
d. Horizontal buying
e. Supply buying
Answer: b
Page: 213
Level of difficulty: Medium
58
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
74. Xerox offers a ________ approach to prospective clients when it offers a complete
turnkey procedure, operation, and management of the client’s information and
communication need.
a. supply buying
b. primary buying
c. systems buying
d. co-op buying system
e. direct buying
Answer: c
Page: 213
Level of difficulty: Medium
75. If Ampex Support Systems is the single supplier for a local manufacturing company’s
MRO (maintenance, repair, operating) supplies and needs, Ampex Support Systems
would then be considered as providing ________ for the manufacturer.
a. systems buying
b. purchasing support
c. turnkey logistics
d. decision support
e. systems contracting
Answer: e
Page: 214
Level of difficulty: Hard
76. ________ is a key industrial marketing strategy in bidding to build large-scale
industrial products (e.g., dams, pipelines, et cetera).
a. Systems contracting
b. Systems buying
c. Systems selling
d. Solutions buying
e. Turnkey logistics
Answer: c
Page: 214
Level of difficulty: Hard
77. ________ is composed of all those individuals and groups who participate in the
purchasing decision-making process, who share some common goals and the risks
arising from their decisions.
a. The buying center
b. The marketing sales team
c. Strategic management
d. Engineering support
e. The logistics center
Answer: a
Page: 214
Level of difficulty: Medium
59
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
78. In the purchasing decision process, the ________ are those who request that
something be purchased. They may be users or others in the organization.
a. users
b. initiators
c. influencers
d. deciders
e. approvers
Answer: b
Page: 214
Level of difficulty: Easy
79. In the purchasing decision process, the ________ are those who have the power to
prevent sellers or information from reaching members of the buying center.
a. gatekeepers
b. buyers
c. initiators
d. approvers
e. deciders
Answer: a
Page: 215
Level of difficulty: Medium
80. The typical buying center has a minimum of ________ members.
a. 2–3
b. 3–4
c. 4–5
d. 5–6
e. 10
Answer: d
Page: 215
Level of difficulty: Hard
81. Webster cautions that ultimately, ________ make purchasing decisions.
a. only senior managers
b. individuals, not organizations
c. organizations, not individuals
d. third parties
e. systems contractors
Answer: b
Page: 215
Level of difficulty: Medium
82. Small sellers concentrate their marketing efforts on reaching ________.
a. approvers
b. initiators
c. key buying influencers
d. users
e. the purchasing staff
Answer: c
Page: 216
Level of difficulty: Medium
60
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
83. To the ________ price is everything and transactional selling is used.
a. solution-oriented customers
b. income-oriented customers
c. gold-standard customers
d. strategic-value customers
e. price-oriented customers
Answer: e
Page: 216
Level of difficulty: Easy
84. The strategic-value customers want a fairly permanent sole-supplier relationship with
your company. Which of the following would be the best selling format to use with
the strategic-value customer?
a. Transactional selling
b. Consultative selling
c. Quality selling
d. Enterprise selling
e. Indirect demand selling
Answer: d
Page: 216
Level of difficulty: Hard
85. Some customers are willing to handle price-oriented buyers by setting a lower price,
but establishing restrictive conditions. All of the following would be among those
conditions EXCEPT ________.
a. limiting the quantity that can be purchased
b. no refunds
c. no adjustments
d. no services
e. no customer advertising
Answer: e
Page: 216
Level of difficulty: Medium
86. If a supplier signs an agreement with a customer that states $350,000 in savings will
be earned by the customer over the next 18 months in an exchange for a ten-fold
increase in the customer’s share of supplies ordered by the customer, the two parties
will have participated in what is called ________.
a. solution selling
b. consultative selling
c. risk and gain sharing
d. strategic alignment
e. demand shifting
Answer: c
Page: 217
Level of difficulty: Medium
61
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
87. W.W. Grainger employees work at large customer facilities to reduce materialsmanagement costs. Which of the following forms of solution selling is W.W.
Grainger using?
a. Solutions to partnerships.
b. Solutions to alter corporate culture.
c. Solutions to enhance customer revenues.
d. Solutions to decrease customer risks.
e. Solutions to reduce customer costs.
Answer: e
Page: 217
Level of difficulty: Medium
88. In principle, business buyers seek to ________ in relation a market offering’s costs.
a. spread risks
b. obtain the highest benefit package
c. maintain everyday-low-prices
d. outsource as much as is possible
e. eliminate partners’ shares in profits as much as possible
Answer: b
Page: 217
Level of difficulty: Hard
89. In the past, what position did purchasing departments hold in the management
hierarchy of most organizations?
a. A high level because of their role in managing the company’s costs.
b. A moderate level because of their spotty record on controlling costs.
c. A low level despite the fact that they manage more than half of the company’s
costs.
d. A secretive position.
e. There has been no determination of this position.
Answer: c
Page: 218
Level of difficulty: Hard
90. The new, more strategically-oriented purchasing departments have a mission. Which
of the following most accurately describes that mission?
a. Make the most profit possible and remain independent of entanglements.
b. Approach every purchasing opportunity as means to create interdependency.
c. Seek the best value from fewer and better suppliers.
d. Outsource the supply function.
e. Abandon all strategies except for systems selling and buying.
Answer: c
Page: 218
Level of difficulty: Hard
91. When the purchaser’s focus is short term and tactical and they are rewarded on their
ability to obtain the lowest price from suppliers for the given level of quality and
availability, this is referred to as ________.
a. procurement orientation
b. supply chain management orientation
c. buying orientation
d. sellers orientation
e. market orientation
Answer: c
Page: 218
Level of difficulty: Medium
62
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
92. When buyers simultaneously seek quality improvements and cost reductions and they
develop collaborative relationships with major suppliers and seek savings through
better management of acquisition, conversion, and disposal costs, this is referred to as
________.
a. sellers orientation
b. supply chain management orientation
c. market orientation
d. procurement orientation
e. buying orientation
Answer: d
Page: 218
Level of difficulty: Hard
93. When the purchasing role is further broadened to become a more strategic, valueadding operation, this is referred to as ________.
a. supply chain management orientation
b. buying orientation
c. sellers orientation
d. procurement orientation
e. routine orientation
Answer: a
Page: 218
Level of difficulty: Medium
94. Peter Kraljic distinguished four product-related purchasing processes. Which of the
following matches to products that have high value and cost to the customer but
involve little risk of supply because many companies make them?
a. Strategic products
b. Bottleneck products
c. Leverage products
d. Routine products
e. Commodity products
Answer: c
Page: 219
Level of difficulty: Hard
95. The products that have high value and cost to the customer and also involve high risk
(e.g., mainframe computers) are called ________.
a. strategic products
b. bottleneck products
c. leverage products
d. routine products
e. commodity products
Answer: a
Page: 219
Level of difficulty: Medium
63
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
96. Most purchasing professionals describe their jobs as more ________, technical, teamoriented, and involving more responsibility than ever before.
a. risky
b. strategic
c. ethically difficult
d. Web-based
e. human-based
Answer: b
Page: 219
Level of difficulty: Hard
97. Robinson and Associates have identified eight stages and called them buyphases. This
model is called the ________ framework.
a. buygrid
b. buying/selling
c. seller-centered
d. commercial
e. buy-analysis
Answer: a
Page: 219
Level of difficulty: Medium
98. The first step (buyphase) in the straight rebuy buyclass is ________.
a. problem recognition
b. general need description
c. product specification
d. supplier search
e. proposal solicitation
Answer: c
Page: 220
Level of difficulty: Hard
99. A new task buyclass decision begins with which of the following buyphases?
a. Problem recognition
b. General need description
c. Product specification
d. Supplier search
e. Proposal solicitation
Answer: a
Page: 220
Level of difficulty: Medium
100. Business marketers can stimulate problem recognition by ________.
a. trade directories
b. direct mail, telemarketing, and calling on prospects
c. encouraging the Better Business Bureau to release statistics
d. consumer advertising
e. requesting testimonials from existing customers
Answer: b
Page: 221
Level of difficulty: Medium
64
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
101. When Hewlett-Packard sells such complex products as a network computer
system, it is engaging in what it calls the ________ concept because it offers
information and specific solutions to unique problems.
a. “product specification”
b. “price de-escalation”
c. “systems selling”
d. “trusted advisor”
e. “strategic alliance”
Answer: d
Page: 221
Level of difficulty: Medium
102. U.S. businesses spent about ________ on online transactions with other
businesses in 2002 as compared to consumer online purchases of $71 billion during
the same time period.
a. $650 billion
b. $500 billion
c. $482 billion
d. $225 billion
e. $53 billion
Answer: c
Page: 222
Level of difficulty: Hard
103. With respect to e-procurement, Web sites are organized around two types of ehubs: ________.
a. vertical and horizontal hubs
b. vertical and functional hubs
c. functional hubs and organizational hubs
d. supplier and user hubs
e. manufacturer and supplier hubs
Answer: b
Page: 222
Level of difficulty: Hard
104. With respect to e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo, Gillette,
P&G, and several other companies joined forces to form a ________ called Transora
to use their combined leverage to obtain lower prices for raw materials.
a. manufacturer’s co-op
b. supplier’s co-op
c. middleman group
d. buying alliance
e. cabal
Answer: d
Page: 222
Level of difficulty: Medium
65
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
105. Business-to-business cyberbuying is flourishing on the Internet. So far, most of
the products that businesses are buying electronically are ________, and travel and
entertainment services.
a. promotion services such as advertising
b. HR services (e.g., employee recruitment)
c. MRO materials (maintenance, repair, and operations)
d. food services
e. marketing research services
Answer: c
Page: 223
Level of difficulty: Medium
106. Moving into e-procurement has many benefits. Which of the following would not
be among those benefits?
a. Aggregating purchasing across multiple departments gains larger volume
discounts.
b. Aggregating purchasing across multiple departments gains centrally negotiated
volume discounts.
c. There is less buying of substandard goods from outside the approved list of
suppliers.
d. A smaller purchasing staff is required.
e. Purchasing gains a significant leverage with top management because of its
management team.
Answer: e
Page: 224
Level of difficulty: Hard
107. With respect to e-procurement commitment, in 2003 ________ was named
number one in BtoB magazine’s annual ranking of the top B-to-B Web sites because
of its ability to generate sales (about 55 percent of the company’s total sales) and
commitment to the process.
a. Coca-Cola
b. Dell Computers
c. Hewlett-Packard
d. Cadillac
e. Boeing
Answer: c
Page: 224
Level of difficulty: Hard
108. In the proposal solicitation process, ________ should be marketing documents
that describe value and benefits in customer terms.
a. written proposals
b. oral proposals
c. e-proposals
d. alliance proposals
e. global proposals
Answer: a
Page: 225
Level of difficulty: Medium
66
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
109. Xerox qualifies only suppliers who meet the ISO 9000 quality standards, but to
win the company’s top award—certification status—a supplier must first complete
________.
a. government certification
b. an extensive ethics statement evaluation
c. the Xerox Multinational Supplier Quality Survey
d. a company training and indoctrination period
e. a Malcolm Baldridge National Quality Award entry form and then enter
Answer: c
Page: 225
Level of difficulty: Medium
110. All of the following are considered to be methods of assessing customer value
EXCEPT ________.
a. direct survey questions
b. exit interviewing
c. focus-group value assessment
d. conjoint analysis
e. benchmarks
Answer: b
Page: 226
Level of difficulty: Medium
111. According to purchasing professionals, which of the following is considered to be
the major responsibility of the purchasing agent in supplier negotiations?
a. Forming networks for future business.
b. Assuring quality conformance.
c. Being fair with all parties.
d. To use a team approach in negotiations.
e. Negotiating price.
Answer: e
Page: 226
Level of difficulty: Hard
112. If an industrial buyer leases heavy equipment like machinery and trucks rather
than purchasing them, the lessee gains several advantages. Which of the following
would NOT be among those advantages?
a. Higher quality products.
b. Conserving capital.
c. Getting the latest products.
d. Receiving better service.
e. Some tax advantages.
Answer: a
Page: 227
Level of difficulty: Hard
113. “OTIFNE” is a term that summarizes three desirable outcomes of a B-to-B
transaction: OT—deliver on time; IF—in full; and, NE—________.
a. no error
b. no emergencies
c. non-experimental
d. new entrepreneurs
e. need equipment
Answer: a
Page: 227
Level of difficulty: Easy
67
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
114. Corporate credibility depends on three factors: corporate expertise, corporate
trustworthiness, and ________.
a. corporate manpower
b. corporate mission statement
c. corporate likeability
d. corporate governance
e. corporate management structure
Answer: c
Page: 228
Level of difficulty: Hard
115. Cannon and Perreault found that buyer-suppler relationships differed according to
four factors. Which of the following would NOT be among those factors?
a. Importance of supply.
b. Complexity of supply.
c. Availability of alternatives.
d. Supply market dynamism.
e. Demand market conservatism.
Answer: e
Page: 229
Level of difficulty: Medium
116. According to Cannon and Perreault, buyer-supplier relationships fall into eight
different categories. Which of the following relationships is characterized as being
one that has much trust and commitment leading to a true partnership?
a. Mutually adaptive
b. Collaborative
c. Basic buying and selling
d. Customer supply
e. Cooperative systems
Answer: b
Page: 229
Level of difficulty: Medium
117. In the ________ category of Cannon and Perreault’s buyer-supplier relationship
categorization, although bonded by a close, cooperative relationship, the seller adapts
to meet the customer’s needs without expecting much adaptation or change on the
part of the customer in exchange.
a. contractual transaction
b. cooperative system
c. collaborative
d. mutually adaptive
e. customer is king
Answer: e
Page: 229
Level of difficulty: Medium
68
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
118. Vertical coordination can facilitate stronger customer-seller ties but at the same
time may increase the risk to consumer’s and supplier’s ________ (e.g., those
expenditures tailored to a particular company and value chain partner).
a. logistics channel
b. independent operations
c. specific investments
d. leverage ability
e. liquidity situation
Answer: c
Page: 230
Level of difficulty: Hard
119. The ________ market consists of schools, hospitals, nursing homes, prisons, and
other institutions that must provide goods and services to people in their care.
a. vertical
b. nonprofit
c. spot
d. secondary business
e. institutional
Answer: e
Page: 230
Level of difficulty: Medium
120. With purchases of $200 billion annually in goods and services, ________ is the
largest customer in the world.
a. Wal-Mart
b. Grainger
c. the State of California
d. the U.S. government
e. Latin America
Answer: d
Page: 232
Level of difficulty: Medium
69