1.

Highly successful companies know that if they take care of their customers, _
_______
will follow.
a. frequent good word of mouth
b. market share
c. profi ts
d. market share and profi ts
e. increased competition
2. ________ is an important concept when we realize that losing a customer means
losing more than a single sale. It means losing the entire stream of purchases t
hat the
customer would make over a lifetime of patronage.
a. Heuristics
b. Net profi t
c. Customer lifetime value
d. Relationship marketing
e. Market share
3. Besides just acquiring customers, marketing ultimately involves both keeping
and
________ profi table customers.
a. tracking
b. placing in a database
c. growing
d. satisfying
e. none of the above
4. Governmental agencies are becoming more involved in marketing as the years pa
ss.
When a local government advertises keeping the area s streams and water supply
cleaner, it is involved in ________.
a. green marketing
b. social marketing campaigns
c. demarketing
d. environmental marketing
e. partnership marketing
5. When smart marketers look beyond product attributes, they create brand experi
ences
and suffer less from ________.
a. customer dissatisfaction
b. unprofi table ventures
c. marketing myopia
d. customer equity
e. a lower market share
6. Studies have shown that a well-crafted mission statement aids a fi rm s perform
ance
as the mission statement serves as a statement of ________.
a. fact
b. values
c. purpose
d. fi nancial goals
e. employee commitment
7. Jack Welch, CEO at General Electric, expresses the message that Companies can t
give job security, only ________ can.
a. success
b. growth
c. good strategy
d. customers
e. effi ciency
8. When we practice ________, we arrange for a product to occupy a clear, distin
ctive,
and desirable place relative to competing products in the minds of target consum
ers.
a. positioning
b. market positioning
c. target segmenting
d. repositioning
e. product distribution
9. In a basic SWOT analysis the T stands for ________.
a. timing
b. trust
c. threats
d. tomorrow
e. tangible
10. Companies with many different products or brands often create a ________.
a. product management organization
b. services management organization
c. not-for-profi t management organization
d. none of the above
e. all of the above
11. Banks, credit companies, insurance companies, and other businesses that help
fi nance transactions or insure against the risks associated with the buying and
selling
of goods and services are referred to as ________.
a. fi nancial intermediaries
b. physical distribution firms
c. marketing service agencies
d. resellers
e. wholesalers
12. Marketers need to know that almost everyone in this country is a native. Whi
ch
country is it?
a. China
b. Bolivia
c. Japan
d. Korea
e. United States
13. With regard to the natural environment, the major trend of interest to marke
ters is the
________.
a. number of protestors against misuse
b. shortages of raw materials
c. increases in recycling
d. all of the above
e. none of the above
14. Business legislation has been created for three basic reasons: to protect co
mpanies
from each other, to protect the interests of society, and to ________.
a. protect consumers
b. regulate prices
c. increase world trade
d. regulate monopolies
e. promote social responsibility
15. During the 2000s, which of the following factors will drive the Generation X
ers?
a. redefi ning the good life
b. new rituals
c. cutting and pasting
d. all of the above
e. none of the above
16. Marketers must weigh carefully the benefi ts resulting from additional infor
mation
against the ________ of the additional information.
a. uses
b. costs
c. knowledge
d. rewards
e. benefits
17. Why would In the Mood Music Distributors choose a sampling of its customers
to
research rather than all 1,500 of them?
a. Researching all of them is too time-consuming.
b. Researching all of them can be too expensive.
c. The sample can fairly represent the entire population.
d. The customers may all be similar.
e. all of the above
18. Tommy Baker is in charge of customer relationship management for American Pi
e
Nostalgia. As a result of his effort in this area, his fi rm enjoys all of the f
ollowing
EXCEPT ________.
a. providing higher levels of customer service
b. developing deeper customer relationships
c. creating offers tailored to specifi c customer requirements
d. understanding competition better
e. understanding how to better build the marketing mix
19. In general, domestic researchers deal with fairly homogeneous markets. Forei
gn
markets present the challenges of varying levels of economic development, cultur
es
and customs, and ________.
a. import regulations
b. buying patterns
c. dislike of American goods
d. language barriers
e. social perceptions
20. Researchers can guard consumer privacy by all of the following EXCEPT which
statement?
a. Ask only for the information needed.
b. Use information responsibly to provide value.
c. Avoid sharing information without the customer s permission.
d. Sell the information only when it is worth it.
e. Fully explain to the respondents how the information will be used.
21. Most large companies research ________ buying decisions to fi nd out what th
ey buy,
where they buy, how and how much they buy, when they buy, and why they buy.
a. market
b. permanent
c. consumer
d. social
e. group
22. ________ refers to the unique psychological characteristics that lead to rel
atively
consistent and lasting responses to one s own environment. It is usually described
in traits such as self-confi dence, dominance, sociability, autonomy, defensiven
ess,
adaptability, and aggressiveness.
a. Alternative evaluations
b. Belief
c. Culture
d. Personality
e. Self-awareness
23. ________ advertising is a discredited technique where it was once felt that
consumers
could be affected by marketing messages without even knowing it.
a. Alternative evaluation
b. Subliminal
c. Complex
d. Motive
e. Comparative
24. Which of the following typically happens with habitual buying behavior?
a. There is high consumer involvement.
b. There is strong brand loyalty.
c. Consumers search extensively for information.
d. Ad repetition creates brand conviction.
e. none of the above
25. All other marketing variables aside, the key to building lasting relationshi
ps with
customers lies with ________.
a. personality
b. alternative evaluations
c. need recognition
d. customer satisfaction
e. quality

1. One of the many characteristics of the marketplace is that there are many ___
_____
purchases made for each ________ purchase.
a. consumer; business
b. inexpensive; business
c. expensive; consumer
d. business; consumer
e. product; service
2. If we were to compare business purchasers to consumer purchasers, it would be
safe
to say ________.
a. they deal with far fewer but far larger buyers
b. they are paid and the consumer is not paid for buying
c. business buyers almost always work in committees
d. derived demand exists between business purchasers
e. none of the above
3. There is a substantial concentration of travel trailer manufacturers in Elkha
rt,
Indiana, and Lancaster County, Pennsylvania. This demonstrates that industrial
markets tend to be geographically ________.
a. dispersed
b. concentrated
c. homogeneous
d. equidistant
e. focused
4. Hewlett-Packard and Dell buy Intel microprocessor chips because consumers buy
personal computers. This demonstrates an economic principle called ________.
a. elastic demand
b. fl uctuating demand
c. derived demand
d. joint demand
e. market demand
5. Unlike consumer purchases, a business purchase usually involves all of the fo
llowing
EXCEPT ________.
a. better-trained decision participants
b. more professional decision participants
c. more decision participants
d. A and C
e. fewer participants
6. Jim Cosentino and his staff are designing a customer-driven marketing strateg
y. The
fi rst step in this process is market segmentation. Identify the remaining three
steps
(in order) to develop this strategy.
a. market positioning, market differentiation, target marketing
b. market positioning, market targeting, market segmentation
c. market targeting, market differentiation, market positioning
d. market alignment, market segmentation, market positioning
e. market recognition, market preference, market insistence
7. Many smaller companies pursue concentrated marketing because it offers the
opportunity to compete by focusing their limited resources on serving niches tha
t may
be ________ or ________ larger companies.
a. unimportant to; unwanted by
b. unimportant to; overlooked by
c. too small; undesirable to
d. unknown by; unwanted by
e. none of the above
8. All of the following are factors that should be considered when choosing a ta
rget
marketing strategy EXCEPT ________.
a. company resources
b. degree of product variability
c. product life cycle
d. market stability
e. market variability
9. It is safe to say that consumers position products and services ________.
a. after marketers put marketing mixes in place
b. generally after consulting friends who use them
c. with or without the help of marketers
d. rather reluctantly
e. based on nearby competitors positions
10. You have just created the perfect ad. It communicates a solid answer to the
question, Why should I buy your brand? This full positioning is called ________.
a. value proposition
b. AIDA
c. capturing the consumers attention
d. value profi ling
e. VALS
11. Product planners need to think about products and services on three levels.
Each
level adds more customer value. The most basic level is the ________, which
addresses the question, What is the buyer really buying?
a. actual product
b. augmented product
c. core benefi t
d. co-branding
e. exchange
12. The ________ performs many functions including: identifying the product or b
rand,
describing the product, promoting the product, and supporting its positioning.
a. line extension
b. social marketing
c. label
d. specialty product
e. A or C
13. The consistency of the product mix refers to how closely related the various
product
lines are in each of the following ways EXCEPT ________.
a. end use
b. production requirements
c. distribution channels
d. A and C
e. price
14. Some companies ________ names or symbols previously created by other
manufacturers, names of well-known celebrities, and/or characters from popular
movies and books. These can provide an instant and proven brand name.
a. service
b. license
c. market
d. package
e. steal
15. Advertising campaigns can help to create name recognition, brand knowledge,
and
maybe even some brand preference. However, the fact is that brands are not
maintained by advertising but by the ________.
a. marketing
b. line extensions
c. brand experience
d. product mix
e. word-of-mouth elements
16. The fi rst step in the new-product development process is ________.
a. idea generation
b. idea screening
c. concept development
d. concept testing
e. test marketing
17. When using test marketing, consumer products companies usually choose one of
three approaches: standard test markets, controlled test markets, or ________.
a. blind tests
b. random sample test markets
c. simulated test markets
d. nonstandard test markets
e. multiple-city test markets
18. Using sophisticated computer models, simulated test market researchers proje
ct
________ from the results of the simulated test market.
a. test costs
b. national sales
c. regional sales
d. statewide sales
e. international sales
19. The innovation management system approach yields two favorable outcomes: it
helps
create an innovation-oriented company culture, and it ________.
a. will clearly assign responsibility for the process
b. will yield a larger number of new-product ideas
c. will identify successful products
d. will free up senior management time
e. will take less budget support
20. Under the PLC concept the introduction stage takes time, and ________ is(are
) apt to
be slow.
a. consumers
b. sales growth
c. cost reductions
d. price increases
e. competitor product entries
21. Firms set prices as low as possible in order to become the ________.
a. product quality leader
b. market share leader
c. customer quality leader
d. profi t maximization leader
e. price leader
22. Consumer perceptions of the product s value set the ________.
a. demand curve
b. fl oor
c. ceiling
d. variable cost
e. image
23. A variation of break-even pricing, called ________, is when the fi rm tries
to determine
the price at which it will break even to make the profi t it is seeking.
a. competition-based pricing
b. target profi t pricing
c. fi xed cost
d. value-based pricing
e. customer-based pricing
24. ________ involves attaching features and services to differentiate a company s
offers
and to support charging higher prices..
a. Break-even pricing
b. Target pricing
c. Value-added pricing
d. Cost-plus pricing
e. Pricing-down
25. A company faces fi xed costs of $100,000 and variable costs of $8.00/unit. T
hey plan
to directly sell their product to the market for $12.00. How many units must the
y
produce and sell to break even?
a. 20,000
b. 25,000
c. 40,000
d. 50,000
e. not enough information to calculate

1. For market-penetration pricing to work all of the following conditions exist

EXCEPT
________.
a. a highly price sensitive market
b. production costs must fall as volume increases
c. the product must be price inelastic
d. low price must deter competition
e. you must be able to maintain the low price level
2. Michael and John both own leather jackets and are currently shopping for two
new
ones. They both have prices in mind and refer to them when shopping. These price
s
are termed ________.
a. psychological prices
b. reference prices
c. comparison prices
d. price points
e. skimmed prices
3. Durango China Company charges all customers within a given geographical area
a
single total price. The more distant the area, the higher the price. This is ___
_____.
a. geographical pricing
b. zone pricing
c. uniform-delivered pricing
d. FOB-origin pricing
e. bulk rate pricing
4. From time to time it has been necessary for Acme Products to initiate either
price
cuts or price increases because of competition. In both cases, management
considered the possible reaction from competitors and ________.
a. suppliers
b. customers
c. government
d. employees
e. global forces
5. When a fi rm improves the quality and increases the price of a product in rea
ction to a
competitor making a price reduction, the fi rm in essence is ________.
a. moving its brand into a more competitive position
b. adversely positioning its product
c. moving its brand into a higher price-value position
d. wasting its time
e. change its target market
6. All of the following are typical supply chain members EXCEPT ________.
a. resellers
b. customers
c. intermediaries
d. intermediary creditors
e. C and D
7. The major disadvantage of a multichannel system is that ________ and it can g
enerate
greater confl ict.
a. it is harder to control
b. it earns less net profi t
c. it yields fewer domestic sales
d. it is less effi cient
e. it generates bad employee morale
8. All of the following are criteria that should be used when evaluating the maj
or
alternatives for channel members EXCEPT ________.
a. economic factors
b. control
c. adaptive criteria
d. channel leadership
e. none of the above
9. ________ describes those arrangements whereby the producer of a strong brand
sells
it to a dealer only if the dealer will take some or all of the rest of the line.
a. Exclusive distribution
b. Exclusive dealing
c. Exclusive tying
d. Tying agreement
e. Disintermediation
10. Shipping by ________ accounts for more than 60 percent of actual tonnage shi
pped in
the United States today.
a. truck
b. rail
c. water
d. air
e. the Internet
11. ________, such as Sears, provide more sales assistance because they carry mo
re
shopping goods for which customers need information. Their increased operating c
osts
result in higher prices.
a. Self-service retailers
b. Full-service retailers
c. Off-price retailers
d. Limited-service retailers
e. Specialty-service retailers
12. A ________ is a group of retail businesses planned, developed, owned, and ma
naged
as a unit.
a. merchant wholesaler
b. franchise
c. shopping center
d. supermarket
e. hypermarket
13. The ________ is used/depicted when new types of retailing forms begin as low
-margin,
low-price, low-status operations. These new retailers challenge established reta
ilers
and eventually take their place.
a. agent
b. broker
c. wheel-of-retailing concept
d. warehousing
e. product life cycle
14. Wholesalers buy mostly from ________ and sell mostly to retailers and indust
rial
consumers.
a. independents
b. factory outlets
c. producers
d. discount stores
e. none of the above
15. ________ are under great pressure to trade off potential profi ts in order t
o carry a full
line and to stock enough for immediate delivery.
a. Convenience stores
b. Factory outlets
c. Wholesalers
d. Category killer stores
e. None of the above

16. The major promotion tool that includes catalogs, telephone marketing, kiosks
, the
Internet, and more is called ________.
a. sales promotion
b. direct marketing
c. affordable method
d. public relations
e. advertising
17. Marketing communicators must be good at ________ messages that take into acc
ount
how the target audience _________ them.
a. receiving; encodes
b. decoding; encodes
c. encoding; decodes
d. retrieving; perceives
e. none of the above
18. Messages that advocate humor claim that they attract more attention and crea
te more
liking and belief in the sponsor. This is called a(n) ________ appeal.
a. rational
b. structural
c. emotional
d. moral
e. linguistic
19. Nonpersonal communication channels include major media, ________, and events
.
a. sales calls
b. buzz marketing
c. atmospheres
d. word of mouth
e. none of the above
20. The _______ budget setting method is often preferred because it is the most
logical
method. It deals more with specifi c promotion goals and accomplishments.
a. percentage-of-sales
b. affordable
c. competitive-parity
d. objective-and-task
e. exponential smoothing
21. ________ are specifi c tasks to be accomplished with a specifi c target audi
ence
during a specifi c time period.
a. Advertising objectives
b. Advertising budgets
c. Advertising strategies
d. Advertising campaigns
e. Advertising logos
22. All of the following are major steps in media selection EXCEPT _________.
a. deciding on reach, frequency, and impact
b. choosing among major media types
c. selecting specifi c media vehicles
d. deciding on format elements
e. none of the above
23. Advertisers can take advantage of _______ to rifl e in on special market segme
nts.
a. newspapers
b. narrowcasting
c. network television
d. wide circulation magazines
e. none of the above
24. All of the following are benefi ts of a standardized global television adver
tising
campaign EXCEPT ________.
a. lower advertising costs
b. greater global advertising coordination
c. the fact that demographics differ
d. consistent worldwide image
e. none of the above
25. The limitations of television as an advertising medium include all of the fo
llowing
EXCEPT ________.
a. high absolute costs
b. low cost per thousand
c. high clutter
d. fl eeting exposure
e. less audience selectivity
1. ________ involves two-way, personal communication between salespeople and
individual customers whether face-to-face, by telephone, through video or Web
conferences, or by other means.
a. Advertising
b. Persuasive selling
c. Personal selling
d. Integrated marketing communication
e. A and C
2. Of all the tools commonly used, which one of the following is the best for
management to use in evaluating salespeople?
a. call reports
b. sales reports
c. expense reports
d. sales quota reports
e. customer feedback reports
3. Other than prospecting, many salespeople fi nd it most diffi cult to ________
a. approach the prospect
b. make a professional presentation
c. handle the objections well
d. close the sale
e. follow up
4. ________ are goods offered either free or at low cost as an incentive to buy
a product.
a. Rebates
b. Premiums
c. Price packs
d. Cash refund offers
e. Gimmicks
5. During the sales presentation it is important to remember that buyers want __
______
and not smiles and razzle-dazzle.
a. solutions
b. results
c. a glad hand
d. A and B
e. all of the above
6. Today, most companies still use direct marketing as a ________ for marketing
their
goods.
a. supplementary channel or medium
b. major marketing mix element
c. compliment to personal selling
d. technique reserved for mature and international markets
e. A, B, and C
7. ________ is a type of identity theft that uses deceptive e-mails and fraudule
nt Web
sites to fool users into divulging their personal data.
a. Hucksterism
b. Subliminal deception
c. Data mining
d. Web-casting
e. Phishing
8. ________ is considered to be a Web site s layout and design.
a. Content
b. Community
c. Customization
d. Connection
e. Context
9. A great advantage of a comprehensive marketing database is that companies
can identify small groups of customers to receive ________ marketing offers and
communications.
a. discounted
b. fi nely-tuned
c. politically-charged
d. competitive
e. unusual
10. Web-based catalogs present challenges. One challenge is that ________.
a. they are intrusive
b. they create their own attention
c. they are passive and must be marketed
d. they offer limited selections
e. they are diffi cult to locate and download on the Web
11. ________ involves fi rst identifying and assessing competitors and then sele
cting
which competitors to attack or avoid.
a. Competitor analysis
b. Benchmarking
c. Customer-centered analysis
d. Market leading
e. The marketing management process
12. Michael Treacy and Fred Wiersema suggest that companies gain leadership posi
tions
by delivering superior value to their customers. When customers are willing to p
ay
a premium to get precisely what they want and the marketing people respond quick
ly
to customer needs, the company has achieved what is called ________.
a. customer intimacy
b. employee intimacy
c. reaching advertising objectives
d. promotional intimacy
e. marketing intelligence
13. The leading fi rm normally gains the most when the ________.
a. rest of the market follows far behind
b. total market expands
c. personal communication channels expand
d. integrated marketing effort expands
e. major competitors enter the market
14. If a market challenger has fewer resources than the market leader, its best
attack
alternative for exploiting competitor weaknesses is to ________.
a. mount a frontal attack
b. mount an indirect attack
c. never attack in the fi rst place
d. always delay until another day
e. none of the above
15. Firms A, B, and C are manufacturers in the textile industry that follow simi
lar
strategies in a target market; these fi rms are known as ________.
a. a strategic group
b. market leaders
c. market challengers
d. a cooperative cartel
e. monopolists
16. What is a reason why global markets are hard to deal with?
a. Managers need to learn other languages.
b. Managers deal with strange currency.
c. Managers face political uncertainties.
d. Managers must adapt their products to different customer needs and
expectations.
e. All of the above.
17. At least four political-legal factors should be considered in deciding wheth
er to do
business in a given country. Which of the following is NOT one of those factors?
a. attitudes toward international buying
b. government bureaucracy
c. if a state religion is enforced
d. monetary regulations
e. political stability
18. Several factors might draw a company into the international arena. What is N
OT one
of these factors?
a. Global competitors might attack the company s home market by offering better
products at lower prices domestically.
b. Domestic markets might be stagnant or shrinking.
c. Managers might want to travel more.
d. The company s home market might be stagnant or shrinking.
e. The company s customers might be expanding internationally and need servicing.
19. The ________ gives the seller more presence and program control in the forei
gn
market and often serves as a display center and customer service center.
a. product extension service
b. sales branch
c. market-centered branch
d. market niche specialist
e. foreign licensing agreement agent
20. A(n) ________ means selling largely the same products and using the same mar
keting
approaches worldwide.
a. adapting marketing mix
b. global marketing mix
c. standardized marketing mix
d. exporting marketing mix
e. multinational strategy mix
21. Due to the high cost of distribution, the majority of grocery store chains r
eport profi ts
of about ________.
a. 3 percent
b. 1 percent
c. 5 percent
d. 7 percent
e. none of the above
22. The two major movements to keep business in line are environmentalism and
________.
a. consumerism
b. protectionism
c. antimonopoly legislation
d. regulating interstate commerce
e. none of the above
23. What do most companies today focus on when it comes to protecting the
environment?
a. investing heavily in pollution prevention
b. practicing product stewardship
c. developing a sustainable vision
d. investing heavily in environmental technology
e. biodegradability
24. The challenge for the ________ product is to add some pleasing qualities so
that it
will become more desirable in the consumers minds.
a. salutary
b. desirable
c. pleasing
d. durable
e. aesthetic
25. Being assaulted by constant marketing and advertising is often called ______
_.
a. verbal assault
b. visual assault
c. brain penetration
d. subliminal seduction
e. cultural pollution