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Chapter 3 Analyzing the Marketing Environment

2) Which of the following terms is used to describe the actors and forces outside marketing that affect marketing
management's ability to build and maintain successful relationships with target customers?
A) marketing environment
B) marketing orientation
C) strategic planning
D) target markets
E) marketing mix

3) Which of the following is a component of a firm's microenvironment?

A) customer demographics
B) economic recessions
C) population shifts
D) marketing intermediaries
E) technological changes

4) Sam has been directed to study the demographic, economic, political, and cultural forces that affect an
organization. In this instance, Sam has been directed to study the ________ of the organization.
A) macroenvironment
B) microenvironment
C) internal environment
D) marketing mix
E) marketing intermediaries

11) ________ include banks, credit companies, insurance companies, and other businesses that help insure against
the risks associated with the buying and selling of goods.
A) Financial intermediaries
B) Physical distribution firms
C) Resellers
D) Marketing services agencies
E) Wholesalers
18) A company's marketing decisions may be questioned by consumer organizations, environmental groups,
minority groups, and others. These organizations and groups are also known as ________.
A) media publics
B) marketing intermediaries
C) customers
D) citizen-action publics
E) internal publics

24) ________ markets buy goods and services for further processing.
A) Business
B) Reseller
C) Wholesale
D) Consumer
E) Retail

55) Which of the following generational groups is most comfortable with digital technology and embraces that
A) Generation X
B) Millennials
C) Baby Boomers
D) Silent Generation
E) Lost Generation

59) Marketers can group people in a number of ways, including by birth date. However, the following combination
of groups has proven to be more effective: ________.
A) income, lifestyle, life stage
B) profession, common values they seek in products they buy, lifestyle
C) lifestyle, life stage, common values they seek in products they buy
D) place of residence, life stage, lifestyle
E) race or nationality, lifestyle, common values they seek in products they buy

73) With an expected increase in ethnic diversity within the American population, marketers are most likely to
place a greater emphasis on ________.
A) geographic segmentation
B) targeted advertising messages
C) mass marketing
D) "do well by doing good" missions
E) corporate giving

156) Rather than assuming that strategic options are bounded by the current environment, firms adopting a(n)
________ to the marketing environment develop strategies to change the environment.
A) environmental stance
B) proactive stance
C) reactive stance
D) relativist approach
E) no-compromise approach

Chapter 4 Managing Marketing Information to Gain Customer Insights

1) With the recent explosion of information technologies, ________.

most marketing managers are overloaded with data and often overwhelmed by it
B) most marketing managers are concerned solely about the duplication of content
C) companies have ceased to feel the need for marketing information systems
D) companies have ceased to maintain internal databases
E) it has become more difficult and expensive to obtain primary data

2) The real value of marketing information lies in how it is used ________.

A in determining selling prices for products
B) in analyzing budgets
C) in creating advertising campaigns
D) in the customer insights that it provides
E) in introducing a new product to the marketplace

3) Brad works with a reputable retailer and leads a team that collects market information from a wide variety of
sources ranging from marketing research studies to monitoring online conversations where consumers discuss
Brad's firm or its products. Brad's team uses this information to arrive at a better understanding of consumers'
behavior and their buying motives. This, in turn, allows Brad's firm to successfully generate more value for
consumers. Brad leads the ________ team.
A) product development
B) strategy implementation
C) human resource
D) customer relationship management
E) customer insights

6) A(n) ________ consists of people and procedures dedicated to assessing information needs, developing the
needed information, and helping decision makers use the information to generate and validate actionable customer
and market insights.
A enterprise planning system
B) enterprise information system
C) marketing information system
D) corporate performance management system
E) geographic information system

17) A good marketing information system balances the information users ________ to have against what they
________ and what is ________ to offer.
request; want; affordable
B) demand; should request; time-efficient
C) want; are unaware of; the newest technology
D) would like; need; feasible
E) don't need; can afford; available

29) Firms use competitive marketing intelligence to ________.

create and sustain market monopolies
B) counter the adverse effects of organizational anarchy
C) perpetuate organizational learning
D) gain early warnings of competitor moves and strategies
E) strengthen weak ties with industry competitors

36) Competitive marketing intelligence is the systematic collection and analysis of publicly available information
about consumers, competitors, and developments in the marketplace.
Answer: TRUE
41) Which of the following is true with regard to marketing research?
A The marketing research process depends primarily on sophisticated internal databases.
B) The marketing research process requires assessing macroeconomic forces.
C) Marketing research gives marketers insights into customer motivations.
D) Marketing research eliminates the need for a SWOT analysis.
E) Marketing research is a simple two-step process.

57) Which of the following is true with regard to gathering secondary data?
Gathering secondary data involves costly fees to government agencies.
B) Commercial online databases contain primary rather than secondary data.
C) Internet search engines can be useful sources of relevant secondary data.
D) It is illegal for firms to purchase secondary data from outside suppliers.
E) Secondary data eliminates the need for primary data in most cases.

96) In collecting primary data, marketing researchers have a choice of two main research instruments, ________.
reference books and journals
B) questionnaires and mechanical devices
C) social networks and internal databases
D) commercial online databases and search engines
E) open-source directories and blogs

90) A(n) ________ is a segment of the population selected for marketing research to represent the population as a
focus group
B) immersion group
C) primary group
D) sample
E) secondary group

Chapter 5 Consumer Markets and Buyer Behavior

1) Individuals and households that buy or acquire goods and services for personal consumption make up the
A) consumer market

B) market offering

C) market mix

D) subculture

E) social class

3) Which of the following is one of the other stimuli present in a buyer's environment apart from marketing

A) product stimuli

B) cultural stimuli

C) price stimuli

D) place stimuli

E) promotion stimuli

4) Companies can research many aspects of buying decisions. However, the one that is the most difficult to
identify is ________.

A) what consumers buy

B) how and how much they buy

C) why they buy

D) when they buy

E) where they buy

V 12) ________ is the most basic determinant of a person's wants and behavior.

A) Culture

B) Brand personality

C) Cognitive dissonance

D) Motive

E) Attitude

14) Subcultures include nationalities, religions, geographic regions, and ________.

A) genders

B) ages
C) professionsuuu

D) racial groups

E) income levels

22) ________ are society's relatively permanent and ordered divisions whose members share similar values,
interests, and behaviors.

A) Social classes

B) Societal norms

C) Reference groups

D) Universal cultures

E) Social networks

23) Consumer purchases are influenced strongly by characteristics that marketers cannot control but must take into
account, including cultural, social, psychological, and ________ characteristics.

A) economic

B) professional

C) medical

D) personal

E) genetic

32) ________ are people within a reference group who, because of special skills, knowledge, personality, or other
characteristics, exert influence on others.

A) Opinion leaders

B) Innovators

C) Surrogate consumers

D) Stealth marketers

E) Lagging adopters

34) ________ are ambassadors who enthusiastically share their passion for a company's products with large circles
of friends and acquaintances.

A) Leading adopters

B) Brand evangelists

C) Surrogate consumers
D) Market mavens

E) Innovators

40) ________ traditionally has been considered the main purchasing agent for the family in the areas of food,
household products, and clothing, although this is changing as more work outside the home.

A) A teenager

B) The husband

C) The wife

D) The couple together

E) The parent

46) Since a person's economic situation will affect her store and product choices, marketers watch trends in
spending, personal income, interest rates, and ________.

A) employment

B) savings

C) home purchases

D) rents

E) fuel prices

47) ________ is a person's pattern of living as expressed in his/her psychographics, and it includes the individual's
activities, interests, and opinions.

A) Personality

B) Culture

C) Lifestyle

D) Motive

E) Social class

51) Which of the following terms refers to a specific mix of human traits that may be attributed to a particular

A) brand perception

B) brand identity

C) brand personality

D) brand concept

E) brand equity
Chapter 7 Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

2) ________ consists of evaluating each market segment's attractiveness and selecting one or more segments to


Mass customization

Market targeting

Market segmentation


3) ________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or
behaviors that might require separate marketing strategies or mixes.

Mass customization

Market targeting

Market segmentation



5) When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college
students, as an untapped group of potential customers for their new line of products, they were engaging in
________. (new product, new market)

occasion segmenting

local marketing

market diversification

market targeting

product positioning

12) Which of the following is NOT one of the major variables used in segmenting consumer markets?





14) Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs
of individual regions, cities, and neighborhoods. This is an example of ________.

geographic segmentation

product diversification


psychographic segmentation

demographic segmentation

15) ________ segmentation divides the market into segments based on variables such as age, life-cycle stage,
gender, income, occupation, education, religion, ethnicity, and generation.






25) ________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses
concerning a product.



Age and life cycle



50) An American cola-manufacturing company that primarily targets rebellious and adventurous people most
likely uses ________ segmentation.





90) A ________ consists of a set of buyers who share common needs or characteristics that the company decides
to serve.

marketing channel

citizen-action group

distribution channel

customer franchise

target market

91) ________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences
and go after the whole market with one offer. (p.225)

Individual marketing

Local marketing

Niche marketing

Undifferentiated marketing

Segmented marketing

94) Which of the following is a disadvantage of using a differentiated marketing strategy? (p.226)

It generates far lower sales compared to an undifferentiated marketing strategy.

Customer loyalty is negatively impacted and difficult to obtain.

The costs of doing business increase.

Quality control problems increase.

Product safety decreases.

97) ________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals
and locations. (p.227)

Mass marketing

Trigger-based marketing
Differentiated marketing

Concentrated marketing


109) Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole market. This firm
uses a(n) ________ marketing strategy.






103) ________ is the process by which firms interact one-to-one with masses of customers to design products and
services tailor-made to individual needs. (p.230)

Product diversification


Mass customization

Differentiated marketing

Local marketing

Chapter 7 Customer Value-Driven Marketing Strategy: Creating Value for Target Customers
4) ________ involves actually distinguishing the firm's market offering to create superior customer value.
A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting

6) ________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative
to competing products in the minds of target consumers.
A) Mass customization
B) Targeting
C) Segmentation
D) Differentiation
E) Positioning

134) ________ refers to how a company will create differentiated value for targeted segments and what positions
it wants to occupy in those segments.
A) Targeted marketing
B) Market segmentation
C) Product positioning
D) Value proposition
E) Niche marketing

135) A ________ refers to the way a product is defined by consumers on important attributes—the place the
product occupies in consumers' minds relative to competing products.
A) core competency
B) value stream
C) value proposition
D) product position
E) product specification

137) To the extent that a company can differentiate and position itself as providing superior customer value, it
gains ________.
A) competitive advantage
B) complementary assets
C) service life
D) core competencies
E) contingent liability

138) Through ________ differentiation, brands can be differentiated on features, performance, or style and design.
A) services
B) channel
C) people
D) product
E) price

155) Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite
mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.
A) people
B) image
C) channel
D) services
E) product

163) Firms that practice product differentiation gain competitive advantage through the way they design their
channel's coverage, expertise, and performance.
Answer: FALSE

140) Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning
delivery networks. This is an example of ________ differentiation.
A) product
B) image
C) price
D) channel
E) people

154) The Jay Group hires better employees than its competition by conducting effective searches and multi-tiered
interviews. The company also provides high quality training to its employees, an aspect often neglected by
competitors. The Jay Group is most likely to gain a strong competitive advantage through which type of
A) image differentiation
B) people differentiation
C) services differentiation
D) product differentiation
E) channel differentiation

153) Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes
pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification

136) ________ show(s) consumer perceptions of a company's brands versus competing products on important
buying dimensions.
A) Differentiation
B) Positioning
C) Market targeting
D) Perceptual positioning maps
E) Market segmentation

87) Which of the following is the reason a company may choose not to focus on the largest, fastest-growing

A) The smaller segments may be more profitable to the firm.

B) It may lack the skills to serve larger segments.

C) The right size and growth characteristics don't match its goals.

D) The segments may be too competitive.

E) It may lack the physical and financial resources to serve larger segments.

151) "To busy multitaskers who need help remembering things, Evernote is a digital content management
application that makes it easy to capture and remember moments and ideas from your everyday life using your
computer, phone, tablet, and the Web." This is an example of a(n) ________.

A) positioning statement

B) statement of purpose

C) order-routine specification

D) vision statement

E) product specification

152) Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique
feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who
prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?

A) channel differentiation

B) service differentiation

C) product differentiation

D) people differentiation

E) image differentiation

153) Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes
pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.

A) statement of purpose

B) vision statement

C) positioning statement

D) general need description

E) product specification

Chapter 8 Products, Services, and Brands: Building Customer Value

1) Which of the following is true with regard to products?

A) The quality of products is far more difficult to measure than that of services.

B) Products do not include experiences, organizations, persons, places, and ideas.

C) Products are not meant for sale in the market.

D) Products include services, events, persons, places, organizations, ideas, or a mixture of these.

E) Products refer to only those activities that are essentially intangible.

2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are
essentially intangible and do not result in the ownership of anything.

A) Liabilities

B) Services

C) Brands

D) Consumer products
E) Specialty products

7) Which of the following is an example of a pure tangible good?

A) a laptop with a comprehensive warranty for three years

B) an online shoe retailer that provides free home delivery

C) an agency that offers free legal advice

D) a credit card

E) a bag of potato chips

12) If a consumer purchases a new flat-screen "smart" television which can connect to services like Netflix and
Pandora, what is the core customer value involved?

A) connection to entertainment and information

B) state-of the art technology

C) slick and attractive packaging

D) brand name

E) tech support and warranty

13) If a consumer purchases a new flat-screen "smart" television, what is the augmented product involved?

A) connection to the world of entertainment

B) state-of the art technology

C) slick and attractive packaging

D) brand name

E) tech support and warranty

15) What is the core customer value a customer might purchase when buying Urban Decay cosmetics?

A) variety of collections

B) unique packaging

C) unusual colors
D) sense of adventure

E) long-lasting makeup

16) ________ are industrial products.

A) Major appliances

B) Laundry detergents

C) Life insurance policies

D) Office supplies

E) Legal services

17) Consumer products refer to ________.

A) products purchased by consumers for further processing or for use in conducting a business

B) products and services bought by final consumers for personal consumption

C) primarily intangible offerings from marketers

D) raw materials as well as manufactured materials and parts

E) products that aid in the consumer's production or operations, including installations and accessory equipment

18) ________ are consumer products and services that customers usually buy frequently, immediately, and with
minimal comparison and buying effort.

A) Unsought products

B) Capital items

C) Shopping products

D) Convenience products

E) Supplies and repair services

19) Which of the following is an example of a convenience product?

A) fast food

B) diamond ring
C) furniture

D) life insurance

E) refrigerator

22) Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her
money, she plans to spend substantial time and effort in gathering information and making product comparisons
before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product.

A) convenience

B) unsought

C) specialty

D) shopping

E) exclusive

24) A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown
wood, is an example of a ________.

A) convenience product

B) capital item

C) service

D) specialty product

E) product attribute

32) ________ marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviors
of target consumers toward an organization.

A) Social network

B) Organization

C) Niche

D) Location

E) Concentrated
32) ________ marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviors
of target consumers toward an organization.

A) Social network

B) Organization

C) Niche

D) Location

E) Concentrated

33) The advertising slogan, "We bring good things to life," used by General Electric to market itself, is an example
of ________ marketing.

A) person

B) corporate image

C) internal

D) place

E) niche

68) A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller
of a product or service.

A) feature

B) brand

C) line extension

D) package

E) value chain

71) Which of the following has become a major packaging concern in recent years?

A) underpackaging

B) legibility of print

C) colors used

D) product safety

E) durability
57) Developing a product or service involves defining the benefits that it will offer. These benefits are
communicated and delivered by ________.

A) product labels

B) product attributes

C) support services

D) product packaging

E) branding

58) Product attributes include all of the following EXCEPT ________.

A) style

B) design

C) price

D) features

E) quality

59) ________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied
customer needs.

A) Brand equity

B) Product quality

C) Product labeling

D) Brand image

E) Brand personality

64) Style simply describes the ________ of a product.

A) quality
B) appearance

C) utility

D) durability

E) long-term benefits

66) A good design begins with ________.

A) brainstorming new product ideas

B) making prototypes of the planned product

C) identifying the most suitable and aesthetic packaging

D) brainstorming technical product specifications

E) observing and understanding customers and shaping their product-use experience

75) A ________ is a group of products that are closely related because they function in a similar manner, are sold
to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.

A) product line

B) line extension

C) private brand

D) multibrand

E) new brand

77) ________ involves adding more items within the present range of the product line.

A) Market diversification

B) Brand extension

C) Product line filling

D) Upward product line stretching

E) Downward product line stretching

78) Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of
sedans in order to increase profits and satisfy dealers. This is an example of ________.

A) line filling

B) social marketing

C) market diversification

D) negative brand equity

E) person marketing

79) ________ occurs when a company lengthens its product line beyond its current range.

A) Product line filling

B) Product line stretching

C) Co-branding

D) Niche marketing

E) Market diversification

80) Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars.
Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its
existing line of cars. This is an example of ________.

A) social marketing

B) product line filling

C) product line stretching

D) internal marketing

E) cannibalization

83) Product mix ________ refers to the total number of items a company carries within its product lines.

A) length

B) depth

C) height
D) width

E) consistency

84) Product mix ________ refers to the number of versions offered for each product in the line.

A) length

B) depth

C) height

D) width

E) consistency

86) A well-known cosmetic company in New York City added new product lines in order to increase its business.
In other words, it ________.

A) lengthened its existing product line

B) decreased its product line consistency

C) widened its product mix

D) engaged in market diversification

E) engaged in social marketing

Chapter 9 Developing New Products and Managing the Product Life Cycle

1) Which of the following is a significant challenge presented by the product life cycle?

A) increased expenses

B) increased competition

C) new product development

D) evaluation of results

E) recognizing the stages as a product goes through them

8) A firm can obtain new products through acquisition or new product development efforts.
Answer: TRUE

Acquisition refers to ________.

A) the buying of a whole company, a patent, or a license to produce someone else's product

B) an agreement between two or more commercial companies to produce a common product

C) a partnership between two companies to produce a product in different countries by sharing risks

D) investments made in a country's businesses by foreign citizens, often in the form of stocks

E) the development of original products, product improvements, product modifications, and new brands through
the firm's own product development strategies

Which of the following is a common reason for new product failure?

A) incorrect estimation of the market size

B) low product development costs

C) ineffective social marketing campaigns

D) low selling prices of products

E) patent ownership exclusively held by the company

6) A particular firm added three new products earlier this year to increase variety for customers. Two of the
products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause
of their failure?

A) The products were priced too high.

B) The products were advertised incorrectly.

C) Competitors fought back harder than expected.

D) Product research was too extensive.

E) The product development costs were high.

15) Many companies have developed ________ programs that encourage employees to develop new product ideas.

A) management

B) incentive

C) entrepreneurial
D) intrapreneurial

E) crowdsourcing

17) Which of the following is an external source for ideas?

A) project managers

B) engineers

C) salespeople

D) manufacturing staff

E) suppliers

18) Who can pass along information about new concepts or techniques to use in new products?

A) competitors

B) salespeople

C) customers

D) suppliers

E) distribution channels

21) In the new product development process, the first idea-reducing stage is ________.

A) business analysis

B) idea generation

C) concept development

D) crowdsourcing

E) idea screening

22) Executives at an automobile manufacturing company conducted a brainstorming session for selected
employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The
executives then planned to filter out the best ideas during the ________ stage.

A) business analysis
B) idea generation

C) concept testing

D) idea screening

E) concept development

26) A product idea is ________.

A) the way consumers perceive an actual or potential product

B) the knowledge and awareness of a product among consumers

C) a possible product that the company can see itself offering to the market

D) a detailed version of the new product idea stated in meaningful consumer terms

E) the testing of new product concepts with groups of target consumers

28) An attractive product idea must be developed into a ________.

A) concept alternative

B) product concept

C) brand personality

D) brand placement

E) product strategy

29) A ________ is the way consumers perceive an actual or potential product.

A) product idea

B) product concept

C) product image

D) brand personality

E) concept test
31) Which of the following groups do marketers involve for the process of concept testing new products?

A) suppliers

B) employees

C) target consumers

D) manufacturers

E) competitors

42) Which figures does the company use to analyze the new product's financial attractiveness?

A) size of population

B) expected market share

C) number of competitors

D) anticipated number of options

E) sales and costs

57) Introducing a new product into the market is called ________.

A) test marketing

B) simulation

C) co-marketing

D) commercialization

E) segmentation

106) Which of the following refers to the course that a product's sales and profits take over its lifetime?

A) total product process

B) service life

C) product mix

D) product life cycle

E) marketing mix
107) Which of the following best characterizes the decline stage of product development?

A) rapid market acceptance

B) slow sales growth

C) sales and profits decline

D) high investment costs

E) increasing profits

108) Which of the following statements characterizes the introduction stage of the PLC?

A) There are increased marketing outlays.

B) Profits are nonexistent.

C) The company incurs minimal expenses.

D) The product achieves acceptance by most potential buyers.

E) Promotional expenditures are zero.

120) Which of the following stages of the PLC is characterized with high promotional expenditures that result
from an effort to create consumer awareness?

A) growth

B) product development

C) maturity

D) introduction

E) decline

109) Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

A) introduction

B) maturity

C) growth

D) decline

E) product development
110) ________ is the product life cycle period when sales fall off and profits drop.

A) Introduction

B) Growth

C) Maturity

D) Decline

E) Product development

111) ________ is the product life cycle period when sales growth slows because the product has achieved
acceptance. Profits level off because marketing costs increase in the face of competition.

A) Decline

B) Maturity

C) Product development

D) Introduction

E) Growth

125) Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?

A) growth

B) decline

C) maturity

D) introduction

E) adoption

112) Some products that have entered the decline stage have been cycled back to the growth stage through

A) repositioning

B) harvesting

C) maintaining
D) pruning

E) expanding

113) What causes a specific brand's life cycle to change quickly?

A) costs of raw materials

B) changing demographics

C) shift in company strategy

D) competitive attacks and responses

E) new technology

123) Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the
cereal begins to appear in these new markets, the company increases its promotion expenditure to counteract
competitive responses. Kellogg's is in the ________ stage of the product life cycle.

A) introduction

B) growth

C) maturity

D) decline

E) adoption

130) When a product is in the maturity stage, the company should most likely consider ________.

A) harvesting the product or market

B) modifying the product, market, or marketing mix

C) divesting the product line

D) liquidating the firm's assets

E) dropping the product from its market offerings

132) P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover Girl cosmetics. In
these examples, management decided to ________ the products.

A) modify
B) maintain

C) drop

D) harvest

E) franchise

Chapter 10 Pricing: Understanding and Capturing Customer Value

2) ________ is the only element in the marketing mix that produces revenue.

A) Price

B) Product

C) Place

D) Fixed costs

E) Variable costs

10) What sets the ceiling for product prices?

A) product manufacturing costs

B) sellers' perceptions of the product's value

C) customer perceptions of the product's value

D) variable costs

E) break-even volume

11) What sets the floor for product prices?

A) consumer perceptions of the product's value

B) product costs

C) competitors' strategies

D) advertising budgets

E) market competition
12) Effective ________ pricing involves understanding how much value consumers place on the benefits they
receive from the product and setting a price that captures that value.

A) competition-oriented

B) cost-based

C) time-based

D) customer-oriented

E) marketer-oriented

13) ________ pricing uses buyers' perceptions of value as the key to pricing.

A) Customer value-based

B) Cost-based

C) Time-based

D) Markup

E) Target return

16) What is usually the first step in cost-based pricing?

A) testing the product concept with potential customers

B) determining the marketing mix strategy

C) setting a price that covers costs plus a target profit

D) designing a good product

E) adding up the costs of making the product

19) A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also
factor in ________ in determining customer satisfaction and value.

A) wages of employees

B) costs of utilities of the restaurant

C) atmosphere and décor of the restaurant

D) travel distance for customers

E) percentage of bar patrons versus dining patrons

21) Underpriced products ________.

A) produce less revenue than they would if they were priced at the level of perceived value

B) sell poorly in the global marketplace

C) produce more revenue than they would if they were priced at the level of perceived value

D) mostly offer higher value than those with a high markup price

E) are characterized by rapidly declining demand

25) When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are
most likely using ________ pricing.

A) break-even

B) target profit

C) good-value

D) cost-plus

E) target return

27) Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price
discounts. This is an example of ________ pricing.

A) competition-based

B) everyday low

C) cost-plus

D) break-even

E) penetration

34) ________ involves setting prices based on the costs for producing, distributing, and selling the product plus a
fair rate of return for effort and risk.

A) Value-based pricing

B) Competition-based pricing
C) Cost-based pricing

D) Penetration pricing

E) Break-even pricing

Chapter 11 Pricing Strategies: Additional Considerations

2) Companies facing the challenge of setting prices for the first time can choose between two broad strategies:
market-penetration pricing and ________ pricing.

A) comparative

B) competitive

C) market-skimming

D) market-segmentation

E) cost-plus

3) A market-skimming pricing strategy should NOT be used for a new product when ________.

A) the product's quality and image support its higher price

B) enough buyers want the products at that price

C) competitors are unable to enter the market

D) competitors can undercut prices easily

E) producing a smaller number of goods is feasible

7) Companies that set a low price for a new product in order to attract a large number of buyers and a large market
share are using the ________ strategy.

A) market-skimming pricing

B) market-penetration pricing

C) cost-plus pricing

D) inclusive pricing

E) exclusive pricing
8) A market-penetration pricing policy should LEAST likely be used for a new product when ________.

A) the market is highly price sensitive

B) production and distribution costs fall as sales volume increases

C) the product's quality and image support a high price

D) a high price helps keep out the competition

E) there are few or no competitors in the market

10) In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the
prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more
customers, making up for the reduction in price several times over. Which of the following pricing strategies are
they using?

A) market-skimming pricing

B) market-penetration pricing

C) captive-product pricing

D) cash discount pricing

E) by-product pricing

12) Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market
penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?

A) Electrowhip's competitors utilize social media for marketing their products.

B) Electrowhip sells products whose image and quality support high prices.

C) Electrowhip operates in a market with many competitors.

D) Electrowhip does not operate in a price sensitive market.

E) Electrowhip's products are intended to appeal to the elite in society.

11) Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of
gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

A) market-skimming pricing
B) market-penetration pricing

C) market-segmentation pricing

D) cost-plus pricing

E) captive-product pricing

15) Pricing strategies tend to change and evolve as the average product passes through its life cycle.

Answer: TRUE

25) Which of the following companies uses product line pricing?

A) Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries

B) Mobile Point, which launched a range of cell phone models, each priced according to its features

C) Penguin's Parlor, which offers customers a 20-percent discount on their birthdays and certain holidays

D) Green Thumb, which gives away free watering cans with the purchase of certain potted plants

E) Panizza, whose combo meals are priced lower than the individual components sold together

26) Which of the following product mix pricing strategies involves pricing additional or accessory products sold
along with the main product?

A) inclusive product pricing

B) exclusive product pricing

C) by-product pricing

D) product bundle pricing

E) optional-product pricing

30) Which of the following product mix pricing strategies did Polaroid use when it set the general price range of
its cameras low and the markup on its film high?

A) product-segmented pricing

B) by-product pricing

C) customer-segmented pricing

D) captive product pricing

E) product bundling pricing

36) A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood
chips created in the milling process are a(n) ________ that can be sold.

A) bundled product

B) captive product

C) by-product

D) optional product

E) primary product

39) Which of the following companies uses product bundle pricing?

A) Photo Genie, which sells inexpensive cameras that run only on their own, expensive, batteries

B) Go Zone, which launched a range of tablet models, each priced according to its features

C) Penguin's Parlor, which offers customers a 20 percent discount on their birthdays

D) Green Thumb, which gives away free watering cans with the purchase of certain potted plants

E) Panizza, whose combo meals are priced lower than its individual components sold together

59) Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that allow
the customer to visit the salon multiple times in a year. This is an example of a ________.

A) sample

B) promotional allowance

C) product bundle

D) discount

E) product line

66) ________ allowances are price reductions given for turning in an old item when buying a new one.

A) Promotional

B) Trade-in
C) Depreciation

D) Segmented

E) Functional

71) By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even
though the difference in price is not based on differences in cost.

A) segmented

B) variable

C) flexible

D) cost-plus

E) reference

72) The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups
are entitled to the same services. This form of pricing is called ________ pricing.

A) psychological

B) product form

C) customer-segment

D) captive product

E) by-product

74) Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though
the cottages and services offered are identical in every other aspect. This form of pricing is called ________

A) location-based

B) time-based

C) by-product

D) seasonal

E) captive product
76) When a firm varies its price by the season, it is using ________ pricing.

A) product form

B) customer-segment

C) location-based

D) time-based

E) value-added

84) La Belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its
signature scent at $99 per item. La Belle reasons that customers in search of luxury goods will prefer its product
because they are likelier to believe that high price indicates superior quality. What price adjustment strategy is
evident in its reasoning?

A) seasonal pricing

B) time-based pricing

C) captive product pricing

D) psychological pricing

E) location-based pricing

83) ________ are formed by noting current prices, remembering past prices, or assessing the buying situation.

A) Product line prices

B) Seasonal prices

C) Reference prices

D) Time-based prices

E) Product bundle prices

87) Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line.
This is an example of ________.

A) promotional pricing

B) seasonal pricing

C) by-product pricing

D) product bundle pricing

E) time-based pricing

88) Which of the following is true of promotional pricing?

A) It leads to 'deal-prone' customers who buy products only during sales.

B) It fortifies the brand's image in the eyes of customers if relied upon extensively.

C) It simplifies shopping for customers if used simultaneously by multiple stores.

D) It makes balancing short-term sales incentives against long-term brand building unnecessary.

E) It is extremely beneficial for the brand's profitability if practiced repeatedly.

91) Which of the following involves adjusting prices to account for the physical location of customers?

A) location-based pricing

B) geographical pricing

C) domestic pricing

D) interior pricing

E) captive pricing

102) The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

A) captive pricing

B) dynamic pricing

C) basing-point pricing

D) price bundling

E) cost-plus pricing

Chapter 12 Marketing Channels: Delivering Customer Value

1) Producing a product or service and making it available to buyers requires building relationships not only with
customers but also with key suppliers and resellers in the company's ________.

A) upstream partnerships
B) marketing channels

C) inventory providers

D) supply chain

E) downstream partnerships

2) The sets of firms that supply companies with the raw materials, components, parts, information, finances, and
expertise needed to create products or services are known as ________.

A) retailers

B) upstream partners

C) distributors

D) downstream partners

E) distribution channels

6) A view of the market that specifies that planning starts by identifying the needs of target customers, to which
the company responds by organizing a chain of resources and activities with the goal of creating customer value is
a(n) ________ view.

A) make-and-sell

B) identify-and-target

C) purchase-produce-and-consume

D) market-and-profit

E) sense-and-respond

12) Distribution channel decisions frequently require long-term commitments between firms. A primary reason is
that ________.

A) advertising is not easy to change

B) old products are difficult to discard and new products are difficult to introduce

C) when they set up distribution through franchisees, independent dealers, or large retailers, they cannot readily
replace these channels with company-owned stores or Internet sites if conditions change

D) changing the manufacturing requirements is expensive and takes significant time

E) management does not want to be constantly changing the method of selling and distributing its products
21) Which of the following is an example of an indirect marketing channel?

A) June Bride, which sells bridal gowns via its click-to-order online catalogs

B) Farmer Brown, who delivers fresh milk from his dairy to customers every morning

C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country

D) Lifebelt Insurance, which sells life insurance through its door-to-door salespeople

E) Rhonda's Rental, which rents cars to people for the day

44) Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial
Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________

A) equilateral

B) vertical

C) multitiered

D) communal

E) horizontal

45) The management of two Panizza restaurants has an ongoing disagreement over the discount rate given to
students from the local high school. This is an example of ________ conflict.

A) intensive

B) selective

C) exclusive

D) horizontal

E) vertical

62) When McDonald's offers its products inside of a Walmart store, it is using a(n) ________.

A) conventional marketing system

B) corporate VMS

C) contractual VMS
D) administered VMS

E) horizontal marketing system

61) Which of the following is most likely a manufacturer-sponsored retailer franchise system?

A) international fast food chains like McDonald's and Pizza Hut

B) Starbucks outlets operating within Target stores

C) Toyota and its network of independent franchised dealers

D) licensed bottlers that bottle and sell soft drinks to retailers

E) hotel chains like the Ritz Carlton and Shangri-La

63) A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more
customer segments.

A) conventional distribution

B) corporate vertical marketing

C) horizontal marketing

D) administered vertical marketing

E) multichannel distribution

94) For which of the following products would the intensive distribution strategy most likely be used?

A) high-end cameras

B) luxury cars

C) lawn mowers

D) soft drinks

E) furniture

97) For which product would a company use an exclusive distribution strategy?

A) luxury cars

B) newspapers
C) chewing gum

D) dairy products

E) soft drinks

Chapter 15 Advertising and Public Relations

1) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
is called ________.

A) sales promotion

B) direct marketing

C) advertising

D) personal selling

E) public relations

9) An advertising objective is classified by its primary purpose, which is to inform, persuade, or ________.

A) reciprocate

B) compete

C) remind

D) explain

E) suggest

13) When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans
grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean
Magic Eraser?

A) informative advertising

B) persuasive advertising

C) reminder advertising

D) developmental advertising

E) comparative advertising
15) Which of the following is an objective of persuasive advertising?

A) communicate customer value

B) correct false impressions

C) describe available services and support

D) keep the brand in a customer's mind during off-seasons

E) engage customers and create brand community

17) Persuasive advertising becomes ________ advertising when a company directly or indirectly compares its
brand with one or more other brands.

A) informative

B) reminder

C) attack

D) covert

E) institutional

26) Advertising has numerous goals. Which of the following is NOT one of those goals?

A) to help move consumers through the buying process

B) to work with lobbyists and legislators in developing industry regulations

C) to move people to immediate action

D) to build or strengthen long-term customer relationships

E) to engage customers and change the way they think or feel about the brand

30) Which of the following brands most likely requires heavy advertising in order to be set apart from similar

A) undifferentiated brands

B) specialty brands

C) international brands

D) mature brands
E) high-share brands

31) Brands in a market with many competitors and high advertising clutter must ________.

A) have very high prices compared to competitors

B) be advertised only through print and social media

C) be advertised more heavily to be noticed in the marketplace

D) never be advertised using informative advertising

E) be advertised only during the mature stage of the product life cycle

37) The aim of ________ is to make an advertisement so useful or entertaining that people want to watch it.

A) branded entertainment

B) advertainment

C) viral marketing

D) buzz marketing

E) word-of-mouth advertising

38) In addition to advertainment, advertisers are creating content that ________.

A) provides much more information than ads did in the past

B) they expect to go viral

C) helps the advertiser save money

D) looks less like ads and more like short films or shows

E) confuses viewers about whether they are ads

40) Pepsi being prominently featured on episodes of Empire is an example of ________.

A) advertainment

B) buzz marketing

C) personal selling

D) sales promotion
E) product placement

45) After creating a message strategy statement, the advertiser must develop a compelling ________ that will
bring the message strategy to life in a distinctive and memorable way.

A) creative concept

B) customer strategy

C) customer benefit

D) execution style

E) media vehicle

47) In its advertisements, Timex promotes its affordable and sturdy watches. Fossil emphasizes style and fashion
in its advertisements, and Rolex stresses luxury and status. These are all examples of ________ appeals.

A) rational

B) reminder

C) believable

D) entertainment

E) distinctive

50) An ad for a new convection oven shows a busy professional woman using the convection oven to cook dinner
for her family. Which of the following message execution styles is illustrated in this example?

A) testimonial evidence

B) slice of life

C) fantasy

D) scientific evidence

E) mood or image

51) An ad for Athleta active wear shows a woman in a complex yoga pose and states: "If your body is your temple,
build it one piece at a time." This ad uses the ________ execution style.

A) slice of life
B) lifestyle

C) fantasy

D) scientific evidence

E) personality symbol

54) An IKEA ad shows consumers creating fanciful room designs with IKEA furniture, such as "a bedroom for a
queen made by Bree and her sister, designed by IKEA." Which of the following message execution styles is
illustrated in this example?

A) mood or image

B) musical

C) fantasy

D) lifestyle

E) personality symbol

60) Maybelline used Gigi Hadid, a model, to endorse a new range of cosmetics. This message execution style is
referred to as ________.

A) lifestyle

B) testimonial evidence

C) image

D) technical expertise

E) personality symbol

71) You receive a report that 68 percent of your target market has been exposed to your ad campaign during a
given period of time. Which of the following aspects of media selection is represented by this information?

A) frequency

B) reach

C) impact

D) engagement

E) qualitative value
72) Which of the following statements about magazines as an advertising medium is true?

A) Magazines have long ad purchase lead times.

B) Magazines cannot offer high geographic selectivity.

C) Magazines lack credibility.

D) Magazines provide better local coverage than newspapers.

E) Magazines have poor reproduction of images.

82) Rather than measuring click-through rates, companies now want to track ________ as a more accurate
measure of the engagement of the consumers in the message.

A) ratings

B) consumer expressions

C) listenership

D) consumer impressions

E) readership

87) Modern Family and The Wall Street Journal are both examples of ________—specific media within each
general media type.

A) alternative media

B) major media

C) media vehicles

D) media multitaskers

E) micromedia

144) How can public relations have a strong impact at a much lower cost than advertising?

A) The firm can pay for content to be spread.

B) Interested consumers can create the content on their own and spread it.
C) Interesting brand stories, events, videos, or other content can be shared by sources out of the company's control,
but to its benefit.

D) Advertising agencies can minimize the impact of competitors' news.

E) Advertising costs have changed dramatically due to changing technologies.

156) Which of the following is a major tool used by PR professionals?

A) standardized global advertising

B) market penetration

C) news

D) bait-and-switch strategy

E) product packaging

Chapter 16 Personal Selling and Sales Promotion

6) Which of the following would most likely improve coordination between marketing and sales?

A) Salespeople should directly participate in the development of new products.

B) Salespeople should participate in marketing planning sessions by sharing firsthand customer knowledge.

C) The sales force should strategize promotional strategies and be the primary decision makers about marketing.

D) Marketing managers should field test new promotion strategies before the sales team.

E) The marketing and sales departments should conduct annual job rotations.

20) If a company ________, it should adopt a product sales force structure, in which the sales force specializes
along product lines.

A) specializes in a single product

B) manufactures a small number of simple products

C) maintains that product specialization is counterproductive

D) has numerous and complex products

E) lacks salespeople with superior technical know-how

26) Morrill Motors splits the United States of America into 10 sales regions. Within each of those regions, the
company has separate sales personnel selling the company's full line of products. Morrill Motors uses a ________
sales force structure.

A) territorial

B) complex

C) customer

D) product

E) market

49) More and more companies are moving away from high-commission plans because ________.

A) outside salespeople tend to undermine the efforts of the inside sales team

B) high-commission plans require salespeople to work overtime

C) salespeople tend to become pushy which affects customer relationships

D) salespeople are prone to taking multiple sales jobs to maximize their income

E) salespeople end up spending too much time traveling to meet customers

111) Which of the following is true with regard to value selling?

A) Value selling refers to earning business from customers by cutting down prices of value products.

B) Value selling refers to delivering superior customer value and capturing a fair return on that value.

C) Value selling refers to the mass production of inferior-quality goods for sale.

D) Value selling dilutes customer loyalty in the long run.

E) Value selling tarnishes the brand image of a product in the long run.

131) Which of the following factors has most likely contributed to the rapid growth of sales promotion,
particularly in consumer markets?

A) declining interest in quality

B) declining advertising efficiency

C) rising hostility toward large firms

D) increasing popularity of e-procurement

E) increasing number of international firms

134) Which of the following is the most effective—but most expensive—way to introduce a new product or create
new excitement for an existing one?

A) coupons

B) sampling

C) cash refunds

D) cents-off deals

E) satisficing

148) Which of the following questions would help a marketer evaluate the return on a sales promotion investment?

A) Was the sales force successful in filtering out the good prospects from the poor ones?

B) Did customers enjoy the events associated with the promotion?

C) Did customers receive high-quality promotional products?

D) Did the promotion attract new customers or more purchasing from current customers?

E) Were channel intermediaries effectively positioned to ensure a seamless supply of products?

150) Bose offers $50 cash back to customers who purchase a new speaker and send in a proof of purchase. This is
an example of a ________.

A) rebate

B) POP promotion

C) price pack

D) premium

E) sample

156) Orion is planning to give away free mouse pads imprinted with the company logo and name to anyone who
enters their store on the day they launch their new laser mouse. What kind of sales promotion is Orion planning?
A) promotional products

B) rebate

C) price packs

D) sweepstakes

E) premiums

Chapter 17 Direct, Online, Social Media, and Mobile Marketing and GEICO approach customers via Web sites or mobile apps. This is an example of ________

A) mass

B) niche

C) individual

D) multi-level

E) direct

6) Which of the following is true about online direct marketing?

A) Online direct marketing is also referred to as multi-level marketing.

B) Salespersons are compensated for other salespeople they recruit.

C) Online direct marketing allows sellers to create immediate, timely, and personal offers.

D) Online direct marketing involves two or more intermediaries.

E) In online direct marketing, outside and inside sales forces coordinate to provide value products to customers.

21) Online companies include all of the following EXCEPT ________.

A) content sites

B) online social media

C) search engines and portals

D) transaction sites
E) brick-and-mortar

22) Companies such as and that sell products and services directly to final buyers
exclusively over the Internet are known as ________.

A) transaction sites

B) content sites

C) search engines and portals

D) e-tailers

E) online social media

36) In ________, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!,
and Bing.

A) content sponsorships

B) digital billboards

C) digital catalogs

D) contextual advertisements

E) RSS feeds

41) After selecting a sweater on the Land's End Web site, Kelly was asked to fill in details for the customer
database. Kelly was given a form that required her to fill in her name, date of birth, and e-mail address. Kelly then
checked a box that was next to the following statement: "Yes, I would like to receive weekly promotional
information from Land's End online." Which of the following practices is evident from this scenario?

A) e-mail hosting service

B) e-mail spoofing

C) catalog marketing

D) contextual advertising

E) permission-based e-mail marketing

43) ________ involves creating a video, e-mail, mobile message, advertisement, or other marketing event that is so
infectious that customers will seek it out or pass it along to their friends.

A) Telemarketing

B) Omni-channel marketing

C) Integrated marketing

D) Viral marketing

E) Kiosk marketing

46) Which of the following is NOT a deception or fraud concern for Internet users and marketers?

A) phishing

B) viral marketing

C) malware

D) cyber spying

E) spyware

54) Which of the following is a disadvantage of using blogs as a marketing tool?

A) The blogosphere is cluttered and difficult to control.

B) Advertising on a blog is typically expensive and time consuming.

C) Using blogs as a marketing tool offers minimum reach to a target audience.

D) Blogs, when used as a marketing tool, have a low rank in Web directories and search engines.

E) Blogs do not provide the kind of personalized approach that today's marketers are looking for.

56) What is a significant issue for social media and for companies using it as a marketing tool?

A) measuring viewership

B) creating content

C) identifying target markets

D) monetizing the tool

E) recognizing effective social media sites

78) Which of the following is a challenge of marketing through online social networks?
A) Results are hard to measure.

B) Users seldom have control over the online social networks.

C) Most existing networks are already controlled by major corporations and therefore do not favor competitors.

D) It is difficult to get the approval of the online advisory board to post an ad in a social network.

E) Marketing via online social networks is expensive and time-consuming.

80) An integrated social marketing campaign likely could include all of the following EXCEPT ________.

A) Facebook pages

B) Twitter postings

C) Instagram photos

D) television ads

E) YouTube videos

129) Consumers' names and additional information likely become part of ________ whenever they enter a
sweepstakes, apply for a credit card, visit a Web site, or send a tweet.

A) other consumers' contact lists

B) telemarketers' lists

C) their computer's cookie history

D) a company's database

E) the FTC's surveys regarding online privacy

Chapter 20 Sustainable Marketing: Social Responsibility and Ethics

2) The marketing concept focuses on meeting the company's short-term sales, ________, and profit needs, though
that doesn't always serve the future best interests of either customers or the business.

A) market share

B) customer value

C) growth

D) competitive advantages

E) manufacturing productivity

3) ________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing
the ability of future generations to meet their needs.

A) Sustainable marketing
B) Ambush marketing

C) Consumerism

D) Environmentalism

E) Strategic planning

5) According to the text, McDonald's was criticized for all of the following EXCEPT ________.

A) the sizable environmental footprint of its global operations

B) wasteful packaging and solid waste creation

C) inefficient energy use in its stores

D) marketing tasty fast foods

E) contributing to the obesity epidemic

9) The BeautyShop, a manufacturer of skin care products, uses only plant-based materials for its cosmetic
products. It supports several environmental protection movements and movements defending human rights. This
accounts for the company's efforts to build good will and corporate social responsibility. This exemplifies the
________ concept.

A) consumer business

B) strategic planning

C) consumerism

D) direct marketing

E) sustainable marketing

10) Sustainable marketing includes all of the following EXCEPT ________.

A) going beyond caring for the needs and wants of today's customers

B) focusing on profits and return to shareholders and employees above all else

C) having concern for tomorrow's customers in ensuring the success of the business, employees, and the broader

D) pursuing a mission of shared value and triple bottom line: people, planet, profits

E) provides context for companies to engage customers and build profitable relationships with them by creating
value for customers in order to capture value from customers in return, now and in the future.

15) Critics point out that in the stationery industry, a pen that costs fifty cents to make costs the consumer $10 to
buy. This is an example of ________.

A) deceptive advertising
B) redlining

C) excessive markups

D) high-pressure selling

E) shoddy products

19) Critics charge that promotion adds only ________ to a product.

A) functional value

B) psychological value

C) moderate value

D) strategic value

E) qualitative value

37) Critics have accused some producers of practicing ________ by using materials and components that will
break, wear, rust, or rot sooner than they should.

A) high-pressure selling

B) short-term planning

C) planned obsolescence

D) nonfunctional warranty

E) deceptive promotion

44) When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are likely to be accused
of the discriminatory practice of ________.

A) embargo

B) licensing

C) redlining

D) puffery

E) scrambled merchandising

52) Which of the following is an example of cultural pollution?

A) gasoline shortages

B) congestion tolls

C) street signs in cities

D) overpasses in suburban areas

E) billboards marring beautiful scenery

60) Setting prices below cost, threatening to cut off business with suppliers, and discouraging the purchase of a
competitor's products are all examples of ________.

A) oligopolistic competition

B) social costs

C) predatory competition

D) acquisitions

E) cultural pollution

55) Critics claim that firms are harmed and competition is reduced when companies expand by ________.

A) developing their own new products

B) diversifying into new industries

C) acquiring competitors

D) developing new markets

E) initiating joint ventures

58) Critics charge that a company's marketing practices can harm other companies and reduce competition. One of
the problems critics identified is ________.

A) pollution

B) barriers to entry

C) unfair discrimination

D) bait-and-switch advertising

E) fair packaging and labeling

95) Environmentalists assert that the marketing system's goal should be to maximize ________.

A) sales and profits

B) consumer satisfaction

C) life quality

D) consumer choice

E) consumption
96) Environmentalism is concerned with damage to the ecosystem caused by global warming, toxic and solid
waste, chemically treated food, resource depletion, and ________ along with other issues.

A) wage inequity

B) nutritional information

C) technological changes impacting individuals

D) the availability of fresh water

E) truth in lending laws