MKT Final Review - Flashcards

Q: Which of the following statements about environmental forces is MOST ACCURATE?

Some environmental forces can actually enhance a firm\'s marketing opportunities.

Q: An inventor for 3M, David Windorski questioned dozens of students about how they study. They told him

that it would be reasonable to put Post-itÂ® Flags together with a highlighter.

Q: All of the following are true about marketing EXCEPT:

marketing persuades people to buy the \"wrong\" things.

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Which of the following statements about environmental forces is MOST ACCURATE?

answer

Some environmental forces can actually enhance a firm's marketing opportunities.

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Marketing discovers consumer needs by

answer

conducting effective marketing research.

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Which of the following statements about relationship marketing is MOST ACCURATE?

answer

Relationship marketing occurs when there is a personal, ongoing relationship between an organization and its customers.

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An inventor for 3M, David Windorski questioned dozens of students about how they study. They told him

answer

that it would be reasonable to put Post-it® Flags together with a highlighter.

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Initially, Facebook targeted which consumer market segment?

answer

college students

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All of the following are examples of ideas EXCEPT:

answer

Apple using a TV ad to explain the features of an iPad mini (camera, screen resolution, user interface, etc.).

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As organizations have changed their orientation, society's expectations of marketers have also changed. Today, the emphasis of marketing practice has shifted from the interests of __________ to the interests of consumers.

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producers

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With respect to the history of American business, the __________ era immediately followed the sales era.

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marketing concept

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Michelin's __________ can be summed up as "providing safety-conscious parents greater security in tires at a premium price."

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customer value proposition

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All of the following are true about marketing EXCEPT:

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marketing persuades people to buy the "wrong" things.

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The marketing mix elements are called __________ because they are the responsibility of the marketing department in an organization.

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controllable factors

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A live theatre performance cannot be touched like a physical object, but is still considered a product. To a marketer, this is an example of a(n) __________.

answer

service

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Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) __________; and (4) something to exchange.

answer

a way for the parties to communicate

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Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) __________.

answer

something to exchange

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From its inception, where did Hamdi Ulukaya, the creator of Chobani, Inc., want to place Chobani yogurt?

answer

the dairy case of major grocery store chains

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Recently, Fortune magazine named Trader Joe's "America's hottest retailer" for its outstanding __________, including personal attention from employees in the store.

answer

customer experience

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At the functional level, the marketing department

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looks outward, in part by listening to customers

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All of the following were strategic opportunities identified in IBM's 2015 Road Map EXCEPT:

answer

a shift from software and services to PCs and hard disk drives.

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The goal of a SWOT analysis is to

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identify the critical strategy-related factors that can impact the firm.

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The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Dogs" are located in which quadrant of the BCG growth-share matrix?

answer

lower right quadrant

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At the functional level, the organization's strategic direction becomes

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the most specific and most focused in terms of implementing the company's goals.

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All of the following form the foundation upon which a firm builds its marketing program during the strategic marketing process EXCEPT:

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determine what business the organization is in.

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Consider the Lands' End ad above. Lands' End communicates a remarkable commitment to its __________ with these unconditional words: "We accept any return, for any reason. Guaranteed. Period."

answer

competitive advantage

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The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources; (2) design the marketing organization; (3) __________; and (4) execute the marketing program.

answer

define precise tasks, responsibilities, and deadlines

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Which of the following statements regarding an organization's core values is MOST ACCURATE?

answer

Core values guide the organization's conduct

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What are the three steps involved in the planning phase of the strategic marketing process?

answer

Step 1: situation (SWOT) analysis; Step 2: market-product focus and goal setting; and Step 3: the marketing program

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Based on the information in Figure 2-A above, the planning gap between 2003 and 2012, as represented by the wedge DBC, __________.

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is widening

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In recent years, many large firms have changed the title of the head of marketing from vice president of marketing to

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chief marketing officer.

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An organization's competencies include all of the following EXCEPT:

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profit

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Which of the following statements regarding social forces is MOST ACCURATE?

answer

Social forces can have a dramatic impact on marketing strategy.

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When consumer expectations are low based on how they respond to the question, "Looking ahead, do you think that a year from now you will be better off financially, worse off or just about the same as now?" from the Index of Consumer Sentiment conducted by the Survey Research Center at the University of Michigan, economic conditions are MOST LIKELY to be __________ in the near future?

answer

recessionary

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The recent large decline in __________ has had a psychological impact on consumers who tend to spend more when they feel their net worth is rising and postpone purchases when it declines.

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property values

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Many consumers are committed to brands with a strong link to social action. An example of this would be

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Brita's "Filter for Good" campaign.

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Generation X consumers are

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generally supportive of racial and ethnic diversity.

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All of the following are commonly held values in the counties outside the U.S. EXCEPT:

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equality.

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A firm conducting an environmental scan of the marketplace might uncover key __________ like the growth of crowdfunding and 3D printing.

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trends

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Marketers have developed generational marketing programs because

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members of each generation are distinctive in their attitudes and consumer behavior.

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The purpose of environmental scanning is to

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only identify and interpret trends in the marketplace.

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Which of the following legislative actions created a government entity to monitor business practices and stop unfair ones like misleading promotions?

answer

Federal Trade Commission Act

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Consumers are buying hybrid gas-electric automobiles such as the Toyota Prius. This is an example of which of the following cultural values?

answer

Preserving the environment

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The College Board reports that since 2000, college tuition and fees have increased by 143 percent whereas family incomes have risen less than 19 percent. This is an example of a(n) __________ economy.

answer

inflationary

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Twenty years after the Clayton Act, the growth of grocery store chains led many to fear that retail chains presented a threat to smaller, independent retailers. The federal government enacted the __________ to make it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly.

answer

Robinson-Patman Act

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Which of the following laws has the purpose of protecting competition?

answer

Clayton Act

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According to some predictions, which of the following statements regarding attitudes and the roles of men and women is MOST LIKELY to occur if current trends continue?

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The gap between buying patterns of men and women will diminish.

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The Child Protection Act (1966) and the Consumer Product Safety Act (1972) are examples of

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consumer-oriented federal laws.

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When a firm or business displays the Better Business Bureau (BBB) Accredited Business logo on its store window or website, it assures consumers that

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it is a member of a voluntary alliance of companies whose goal is to help maintain fair business practices.

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Which of the following statements MOST ACCURATE distinguishes between laws and ethics?

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Ethics deal with personal and moral principles whereas laws are society's values that are enforceable in the courts.

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In 2012, Anheuser-Busch donated over 1.4 million cans of emergency drinking water to support disaster relief efforts. Anheuser-Busch is exhibiting which of the following?

answer

social responsibility

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A social audit is a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility. The five steps of the audit are: (1) recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors; (2) __________; (3) determination of organizational objectives and priorities for programs and activities it will undertake; (4) specification of the type and amount of resources necessary to achieve social responsibility objectives; and (5) evaluation of social responsibility programs and activities undertaken and assessment of future involvement.

answer

identification of social responsibility causes or programs consistent with the company's mission

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There has been a public outcry about the ethical practices of businesspeople. Public opinion surveys show that 58 percent of U.S. adults rate the ethical standards of business executives as

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fair or poor.

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Consider the Coke-Pepsi photo above. Thirty three percent of Pepsi's marketing and advertising executives say they would decline an offer to buy one of Coke's marketing plans and samples. Most said that they

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would prefer competing ethically so they could sleep at night.

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Transparency International is an organization that

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monitors and ranks nations worldwide according to their perceived use of bribery.

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Economic espionage is MOST LIKELY to occur in which type of industries?

answer

high-tech

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There are three concepts of social responsibility, each relating to particular constituencies. According to Figure 4-4 above, "A" represents __________ responsibility.

answer

societal

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There are three concepts of social responsibility, each relating to particular constituencies. According to Figure 4-4 above, "C" represents __________ responsibility.

answer

profit

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Consider the Coke-Pepsi photo above. An employee of Coca-Cola attempted to share its marketing plan with an employee of Pepsi for a modest price. What should the Pepsi employee do?

answer

Immediately contact Coca-Cola to advise them of the plot to sell the marketing plan.

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What is the fifth and last step of a social audit?

answer

evaluation of social responsibility programs and activities undertaken and assessment of future involvement

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Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group. Culture also serves as a socializing force that dictates what is morally right and just. This means that moral standards

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are relative to particular societies.

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There are three concepts of social responsibility, each relating to particular constituencies. According to Figure 4-4 above, "B" represents __________ responsibility.

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stakeholder

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Two prominent personal moral philosophies that have direct bearing on marketing practice are

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moral idealism and utilitarianism.

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The personal moral philosophy of utilitarianism underlies the economic tenets of

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capitalism.

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Practices such as misredeeming coupons, making fraudulent returns of merchandise, filing warranty claims after the claim period, etc. are

answer

not acceptable because consumers also have an obligation to act ethically and responsibly.

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Economic espionage includes such activities as __________.

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searching through a competitor's trash

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Which list below presents the Maslow hierarchy of needs in its correct order, beginning with the lowest level need and moving up to the highest level need?

answer

physiological, safety, social, personal, and self-actualization

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Retailers can reduce problems associated with selective retention by

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providing brochures for consumers to take home.

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If McNeil Consumer Healthcare uses the same brand name for different products such as Tylenol Cold & Flu and Tylenol P.M. based on behavioral learning theory, this strategy is an example of

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stimulus generalization.

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An example of a public source of information consulted during an external search would include

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product-rating organizations.

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The five roles of individual family members in the consumer purchase decision process are

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information gatherer, influencer, decision maker, purchaser, and user.

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All of the following are strategies a market challenger can use when marketing a low-involvement product EXCEPT:

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use repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice.

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Which of the following statements about social class MOST ACCURATE?

answer

Members of the lower social class have a more short-term time orientation and think in concrete rather than abstract terms.

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When purchasing a tablet device, factors a consumer considers prior to purchase are called __________, which represent both the objective attributes of a brand and the subjective ones used to compare different products and brands.

answer

evaluative criteria

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Spouse dominant decision-making implies that

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either the husband or the wife is primarily responsible for purchase decisions.

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Which problem solving variation would normally be used to purchase items such as cereal or laundry detergent?

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routine problem solving

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An example of a marketer-dominated source of information consulted during an external search would include

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salespeople.

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A supply partnership exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of

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lowering costs or increasing value of products or services to the ultimate consumer.

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__________ comprise the highest percentage of firms in industrial markets.

answer

Service companies

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A buy class situation affects buying center tendencies in different ways. If there are many people involved, the problem definition is uncertain, and the buying influence comes from technical or operating personnel, the buy class situation is MOST LIKELY a

answer

new buy.

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Which of the following characterizes organizational buyer-seller relationships?

answer

Long-term contracts are often prevalent

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Organizational buyers can be divided into three different markets, which are

answer

industrial, reseller, and government.

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The sales department's identification of an improvement made to a competitor's product would occur during which stage of the organizational buying decision process?

answer

problem recognition

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Reverse auctions

answer

are buyer-initiated.

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If a purchase is a new buy for a manufacturer, the seller should

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expect a long time for a buying decision to be reached.

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Firms selling consumer products or services often try to reach thousands or millions of individuals or households. Firms selling to organizations

answer

are restricted to far fewer buyers.

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Although the U.S. Justice Department frowns on __________ because it restricts the normal operation of a free market, it is still legal for two companies to buy one another's products as long as there is no coercion involved.

answer

reciprocity

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Starbucks purchases from coffee growers located in more than 20 countries. Starbucks: (1) pays the coffee farmers a fair price for the beans; (2) the coffee is grown in an ecologically sound manner; and (3) Starbucks invests in the farming communities where the coffees are produced. This is an example of

answer

sustainable procurement.

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Important product or service characteristics in organizational buying include which of the following?

answer

Many of the goods purchased are raw and semifinished.

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Dell, Inc. sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a

answer

traditional auction

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International trade statistics indicate the largest exporting industries in the United States focus on __________.

answer

organizational buyers

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The NAICS is consistent with the International Standard Industrial Classification of All Economic Activities, which is published by the __________ to facilitate measurement of global economic activity.

answer

United Nations (UN)

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Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

answer

a comparative analysis of the economic development in different countries. A scan of the global marketplace should include: (1) a comparative analysis of the economic development in different countries; (2) an assessment of the economic infrastructure in these countries; (3) measurement of consumer income in different countries; and (4) recognition of a country's currency exchange rates.

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The Dutch lead the world in the cut-flower industry because of their research in flower cultivation, packaging, and shipping. Using this knowledge as a resource is an example of what Michael Porter would term

answer

factor conditions.

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Which of the following is an example of a demand condition?

answer

sophistication of consumers

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When a nation's imports exceed its exports, it incurs a __________ in its balance of trade.

answer

deficit

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Most companies become involved in direct exporting when

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they believe their volume of sales will be sufficiently large and easy to obtain so that they do not require intermediaries.

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World trade flows to and from the United States reflect __________ for products and services among nations and industries.

answer

demand and supply interdependencies

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The __________ arrangement between Ericsson, a Swedish telecommunications firm, and CGCT, a French switch maker, enabled them together to beat out AT&T for a $100 million French contract.

answer

joint venture

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CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.

answer

the United States

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Competitive advantage for global firms grows out of continuous improvement, innovation, and __________.

answer

change

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One advantage of direct investment when entering a new global market is that

answer

the firm has a better understanding of local market conditions.

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The Italian shoe industry has become a world leader because of intense domestic competition among firms such as Bruno Magli and Rossimoda. According to Michael Porter's theory about national competitive advantage, Italy's success in the shoe industry is due in part to its

answer

company strategy, structure, and rivalry.

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The use of __________ as a tool for exchanging goods, services, and information on a global scale is one of the trends that has affected world trade.

answer

Internet technology

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Dell established its company primarily with direct telephone- and Internet-based sales. In terms of Dell's global expansion strategy, which of the following statements is MOST ACCURATE?

answer

Dell distributes its products through individual sales associates who reach out to customers with a first-hand experience at their doorsteps.

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Competitive advantage for global firms grows out of __________, innovation, and change.

answer

continuous improvement

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The Malaysian government recently exchanged 20,000 tons of rice for an equivalent amount of Philippine corn. This transaction is an example of (a)

answer

countertrade.

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A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

answer

licensing.

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a test market is an example of which type of marketing research?

answer

causal

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In marketing experiments, the independent variable is the __________ and the dependent variable is the __________.

answer

cause of an action; result of an action

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Which of the following statements concerning personal observation is MOST ACCURATE?

answer

Personal observation is both useful and flexible, but has reliability issues when different observers watching the same event report different results.

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National TV ratings, collected with a "people meter" and published by Nielsen Media Research, are an example of __________ data.

answer

mechanical observational data

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A firm trying to obtain data on the number of households that buy a particular product would MOST LIKELY use which type of marketing research?

answer

descriptive

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Once a market researcher has defined the problem, developed the research plan, and collected the relevant information, what is the next step in the five-step marketing research approach?

answer

develop findings

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In setting research objectives, marketers have to be clear on the purpose of research they are about to do that leads to marketing actions. The three main types of marketing research include descriptive research, exploratory research, and __________ research.

answer

causal

question

Three frequently used sales forecasting techniques are (1) judgments of the decision maker; (2) surveys of knowledgeable groups; and (3) __________.

answer

statistical methods

question

Consider Figure 8-4: Question 6 above, which was part of a Wendy's survey that assessed fast-food restaurant preferences among present and prospective consumers. Question 6 illustrates which type of question format?

answer

Likert

question

The Internet sites for The Wall Street Journal, CNBC, and Fox Business

answer

provide up-to-the-minute business news and video clips about companies, industries, and trends.

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Brand guru Martin Lindstrom believes that traditional marketing research is wasted because

answer

much of a consumer's feelings toward products and brands resides in the subconscious part of the brain

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Several marketing data services provide information on household demographics and lifestyle, purchases, TV viewing behavior, etc. The principle advantage of these services is that

answer

one service can collect, analyze, interrelate, and present this information.

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Two key elements in deciding how to collect marketing data are __________ and __________.

answer

concepts; methods

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A business firm goes to the trouble and expense of segmenting its markets when

answer

it expects that this will increase its sales, profit, and return on investment.

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Selling a product to a different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues don't offset extra costs of this action, a marketer should __________.

answer

combine segments

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Which of the following data are collected from consumers to develop a perceptual map for a particular product?

answer

consumer judgments about the important attributes for a product or brand class

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Which of the following is a common basis used to segment U.S. organizational markets?

answer

geographic

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Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate and employ a __________ strategy.

answer

frequency marketing

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Which of the following is a criterion used for selecting a target segment?

answer

compatibility with the organization's objectives and resources

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Which of the following is an example of a "Tiffany/Walmart" strategy?

answer

Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.

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The fifth step in segmenting and targeting markets that link customer needs to marketing actions is to __________.

answer

take marketing actions to reach target markets

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A key to positioning a product or brand effectively is discovering the perceptions of its potential customers. In determining its positioning in the minds of customers, companies take four steps: (1) identify the important attributes for the product or brand class; (2) __________; (3) discover where the company's product or brand is on these attributes in the minds of potential customers; and (4) reposition the company's product or brand in the minds of potential customers.

answer

discover how target customers rate competing products or brands with respect to these attributes

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The second step in segmenting and targeting markets that link customer needs to marketing actions is to

answer

group products to be sold into categories.

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The segmentation strategy used by Prince Sports today is

answer

behavioral.

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According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to

answer

finding ways to improve customer-service levels.

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The annual Sporting News Baseball Yearbook used 17 different covers featuring a baseball star from each of its regions in the United States. Four covers are shown above. This is an example of a(n)

answer

one product and multiple market segments.

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As Figure 9-7 above shows, there are three general bases used to segment organizational markets in the U.S., each having its own segmentation variables and typical breakdowns that can be used to segment them. "A" describes the __________ base of segmentation.

answer

behavioral

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Behavioral segmentation encompasses

answer

awareness and intentions.

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Segmentation based on what product features are important to different customers is known as

answer

behavioral segmentation.

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Which of the following would MOST LIKELY be considered a consumer product?

answer

suitcases

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A company's product mix is equal to the sum of its

answer

product lines.

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In terms of promotion, which of the following type of product would stress price, availability, and awareness?

answer

convenience

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Which of the following is an example of a product line?

answer

Hallmark Mother's and Father's Day cards

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Procter & Gamble, however, has a large __________ that includes product groupings such as beauty and grooming (Crest toothpaste and Gillette razors) and household care (Downy fabric softener, Tide detergent), and Pampers diapers.

answer

product mix

question

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the LOWEST level of risk?

answer

a product line extension

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Which of the following methods is commonly used in software development to speed up the development process?

answer

fast prototyping

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"Groupthink" occurs in a meeting when

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someone suspects that there is a problem with the new product concept but is afraid to speak up because everyone else is so enthusiastic about it.

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IDEO is a company that

answer

uses "design thinking" to develop new products for other organizations.

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The new-product process an organization goes through to identify business opportunities and convert them into salable products or services contains

answer

seven stages from new product strategy development to commercialization.

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Among consumer products, advertising and wide distribution are especially important for

answer

nondurable goods.

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Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) __________.

answer

what the product or service will be and do to satisfy consumers

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If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space was unable to generate. What is this type of payment called?

answer

a failure fee

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All of the following actions occur during the business analysis stage of the new-product process EXCEPT:

answer

turning the idea on paper into a prototype.

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Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision?

answer

specialty product

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The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who are deliberate adopters with many informal social contacts are called __________ product adopters.

answer

early majority

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The "Mean Stinks" ignition was designed to primarily reach which segment of prospective customers?

answer

teen girls

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Customer value can assume numerous forms. For Pez Candy, Inc., customer value manifests itself in the form of __________.

answer

character candy dispensers

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The Coca-Cola Company is the __________ of that firm.

answer

trade name

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The range of Gatorade offerings, from the traditional Gatorade Thirst Quencher to newly enhanced beverages conveying the attitude of a tough-love coach or personal trainer through in-your-face names on the label and nutrition benefits inside, are all examples of a company's commitment to __________ product improvement.

answer

continuous

question

When selecting a brand name, it should: (1) suggest the product benefits; (2) __________; (3) fit the company or product image; (4) have no legal or regulatory restrictions; (5) be simple and emotional; and (6) have favorable phonetic and semantic associations in other languages.

answer

be memorable, distinctive, and positive

question

Pez was originally sold in Europe as an adult __________.

answer

breath mint

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Consumer packaged goods firms like General Mills and PepsiCo and as well as industrial firms such as Intel and Hewlett-Packard employ a product manager to manage __________.

answer

a close-knit family of products or brands

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The U.S. Patent and Trademark Office website allows you to

answer

see if a brand or trade name has been registered.

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Four important aspects of product life cycles are: (1) their length; (2) the shape of their sales curves; (3) how they vary with different levels of products; and (4) the rate at which __________.

answer

consumers adopt products

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To help differentiate a company's brand from competitors, an improved version is created, or new features are added to the original design, and product proliferation occurs in the __________ stage of the product life cycle

answer

growth

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The only difference between a brand name and a trade name is

answer

trade names are legally registered and brand names may not be.

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Secret maintains its leadership position as one of many products in what is typically considered a __________ product category.

answer

low-learning

question

There are five key dimensions of service quality:

answer

reliability, tangibility, responsiveness, assurance, and empathy.

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All of the following are benefits to be stressed during the promotion of services EXCEPT:

answer

price.

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What PRIMARY marketing metric does the LA Galaxy use to assess the impact of its marketing actions?

answer

ticket sales

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Organizations attempt to reduce the inconsistency of service delivery through

answer

standardization and training.

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The dimension of service quality called __________ is willingness to help customers and provide prompt service.

answer

responsiveness

question

Three categories for equipment-based services are

answer

automated (self-serve), those operated by relatively unskilled operators, and those operated by skilled operators.

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The trend toward sustainability and "green" business practices has expanded to include many services as they strive to

answer

create a competitive advantage.

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The new sharing economy consists of all of the following EXCEPT:

answer

performing services that provide users with an engaging, unique, authentic, personal, and memorable experience.

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Developing, pricing, promoting, and delivering services are challenging because the quality of the service is often inconsistent. Organizations attempt to reduce this inconsistency by

answer

providing standardization and training.

question

Relationship marketing provides several benefits for service customers, including: (1) the continuity of a single provider; (2) customized service delivery; (3) reduced stress due to a repetitive purchase process; and (4) __________.

answer

an absence of switching costs

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Many retailers hire additional sales help during the holiday season. This is an example of how service companies deal with __________.

answer

inventory carrying costs

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Because services tend to be a(n) __________ rather than an object, they are much more difficult for consumers to evaluate.

answer

performance

question

During the __________ stage of its product life cycle, a firm has great latitude in setting and maintaining a premium price.

answer

introduction

question

Which of the following would be an example of an objective in Step 1 of the price-setting process?

answer

We need to obtain a ten percent market share."

question

Economists have identified four types of competitive markets, which are

answer

pure monopoly, monopolistic competition, oligopoly, and pure competition.

question

Estimating cost, conducting a marginal analysis, and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

answer

Step 3

question

Which of the following statements about the factors that influence demand is true?

answer

As real consumer income increases, the demand for a product increases.

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If competitive market circumstances are such that there is no price competition, no product differentiation, and the purpose of advertising is to increase demand for the product class, then __________ must exist in the industry.

answer

a pure monopoly

question

All of the following statements about price are true EXCEPT:

answer

For most products and services, their prices are always the same.

question

With over half of tickets to major events sold online, StubHub's website can help generate extra ticket sales for the original sponsors. This is why

answer

StubHub now has formal relationships not only with professional sports leagues, but also with many sports programs at major universities.

question

Companies often pursue a market share objective when __________.

answer

industry sales are flat or declining

question

Which of the following statements about price elasticity of demand MOST ACCURATE?

answer

The more substitutes a product has, the more likely it is to be price elastic.

question

Which of the following illustrates movement along the demand curve?

answer

as the price is lowered, the quantity demanded increases, assuming all demand factors stay the same.

question

A target return profit objective implies that a company chooses to

answer

set a profit goal that is often determined by its board of directors.

question

Objectives like profit, market share, and survival as well as constraints such demand for product class and brand, newness, costs, and competition are issues that would be addressed during __________ of the price-setting process.

answer

Step 1

question

Attorneys' fees, entrance fees, train fares, and organization dues are all examples of

answer

price.

question

If competitive market circumstances are such that there is almost no price competition, no product differentiation, and the only advertising informs prospects that the product is available, then the competitive market in this industry must be __________.

answer

pure competition

question

Washburn Guitars markets its guitars to four distinct market segments. The firm's one-of-kind custom instruments are targeted at

answer

stars and collectors.

question

Which of the following statements about geographical pricing is MOST ACCURATE?

answer

FOB origin pricing is legal.

question

After extensive analysis, a mail order company has decided to embark on a policy of multiple-zone pricing. In which step of the price-setting process would the mail order firm have made this decision?

answer

make special adjustments to the list or quoted price

question

Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI). What is the ROI for Scenario "C"?

answer

14%

question

Companies use a "__________" to assess whether its products and brands are above, at, or below the market.

answer

price premium

question

Which of the following statements regarding quantity discounts is MOST ACCURATE?

answer

Noncumulative quantity discounts encourage large individual purchase orders, not a series of orders.

question

Carmex uses all of the following approaches to setting the price of its products EXCEPT:

answer

elasticity-oriented.

question

Which of the following statements about geographical adjustments to price is MOST ACCURATE?

answer

Basing point pricing seems to have been used in industries where freight expenses are a significant part of the total cost to the buyer.

question

When establishing product line pricing, the price differentials between items in the line should make sense to customers and reflect differences in terms of the

answer

perceived value of the products offered.

question

A penetration pricing policy is MOST LIKELY to be effective when: (1) __________; (2) a low initial price discourages competitors from entering the market; and (3) unit production and marketing costs fall dramatically as production volumes increase.

answer

many segments of the market are price sensitive

question

Geographical adjustments are made by manufacturers or even wholesalers to list or quoted prices to reflect

answer

the cost of transportation of the products from seller to buyer.

question

What pricing method is often used because of the difficulty in establishing a benchmark of sales or investment to show how much of a firm's effort is needed to achieve the target?

answer

target return-on-sales pricing

question

A skimming pricing policy is likely to be MOST EFFECTIVE when: (1) __________; (2) the high initial price will not attract competitors; (3) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost; and (4) customers interpret the high price as signifying high quality.

answer

enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable

question

A unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions. Which of the following practices would be permitted?

answer

When price differences result from changing market conditions, avoiding obsolescence of seasonal merchandise, including perishables, or closing out sales.

question

A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used when

answer

the cost of inventory makes it too expensive to use a wholesaler.

question

Dual distribution can violate the Sherman Act and the Clayton Act if the

answer

manufacturer's behavior is viewed as lessening competition by eliminating wholesalers or retailers.

question

What is the first step in choosing the right supply chain?

answer

understand the customer

question

IBM is one of the world's great business success stories because of its ability to reinvent itself to satisfy shifting customer needs in a(n) __________ global marketplace.

answer

dynamic

question

Figure 15-10 above indicates that supply chain managers must balance total logistics cost factors against customer service factors. The six total logistics cost factors ("A," "B," "C," "D," "E," and "F") include all of the following EXCEPT:

answer

time

question

The word flow as it relates to the definition of logistics management refers to decisions needed to move

answer

a product from the source of raw materials to consumption.

question

The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there

answer

are many small manufacturers and many small retailers.

question

The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) __________; (2) understand the supply chain; and (3) harmonize the supply chain with the marketing strategy.

answer

understand the customer

question

CPW (Cereals Partners Worldwide) is a __________ designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.

answer

strategic channel alliance

question

Supply chain managers balance total logistics cost factors against customer service factors. Customer service factors include

answer

time, dependability, communication, and convenience

question

Hewlett-Packard is taking a proactive role in reducing the amount of electronic merchandise dumped in landfills by using __________ to reclaim recyclable and reusable materials.

answer

reverse logistics

question

Tiffany & Co. manufactures about half of the fine jewelry items for sale in its stores and boutiques worldwide. Tiffany & Co. practices

answer

backward integration.

question

Procter & Gamble can obtain cooperation from supermarkets in terms of displaying, promoting, and pricing its products, given its broad assortment of brand-name products. Which type of vertical marketing system does Procter & Gamble represent?

answer

administered vertical marketing system

question

One way to assess the importance of retailing to the U.S. and global economies is to measure the

answer

annual sales of retailers.

question

The value added dimension of the retail positioning matrix includes elements such as location, prestige, and __________.

answer

product reliability

question

The key goal for retailers in the accelerated development phase of the retail life cycle is to

answer

establish a dominant position in the fight for market share.

question

Another name for a drop shipper is a __________.

answer

desk jobber

question

The 5.4 million vending machines currently operating in the United States generate more than __________ in annual sales.

answer

$19 billion

question

Which type of utility is created by online shopping?

answer

time

question

Organizations that decide to franchise (franchisors) have __________ expansion costs accompanied by __________ control, compared to owning their own retail outlets.

answer

reduced; reduced

question

The four major types of limited-service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers, and __________.

answer

rack jobbers

question

Franchising is attractive for the franchisee because

answer

it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provided.

question

The marketing metrics related to a retailer's finances include all of the following EXCEPT:

answer

the average length of a store visit.

question

Consumers benefit in dealing with retail corporate chains because

answer

the latter can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices.

question

Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler?

answer

truck jobbers

question

Managing the breadth and depth of merchandise available from many manufacturers requires retail buyers who are

answer

familiar with the needs of the target market.

question

Mall of America has verbalized its __________ strategy with the slogan, "A place for fun!"

answer

retail positioning

question

The __________ can be used to inform prospective buyers about the benefits of the product.

answer

promotional mix

question

The growing concern about __________ has led to a decline in direct marketing response rates among some customer groups.

answer

privacy

question

The fifth stage in the hierarchy of effects is __________.

answer

adoption

question

Advertising, personal selling, sales promotion, public relations, and direct marketing are marketing communications alternatives that make up a firm's __________.

answer

promotional mix

question

Which of the following statements about advertising is MOST ACCURATE?

answer

Advertising allows a firm to reach a mass market.

question

In the purchase stage of the consumer purchase decision process, research indicates that __________ activities shorten the time consumers take to adopt a product or service.

answer

direct marketing

question

The promotional mix refers to

answer

the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product; (2) persuade them to try it; and (3) remind them later about the benefits they enjoyed by using the product.

question

The promotional objective of the maturity stage of the product life cycle is to __________.

answer

remind

question

Which of these promotional elements has the highest cost-per-contact or exposure?

answer

personal selling

question

Which of the following weaknesses is associated with sales promotions?

answer

its effectiveness diminishes when used continuously

question

Intuitively, a major fallacy of __________ budgeting is that by tying a promotion budget to sales, a company may reduce the amount it spends on promotion if sales declined the previous period when it actually needs to spend more.

answer

percentage of sales

question

With many industrial products and consumer purchases, ancillary services are an important consideration in selecting the promotional mix. The role of __________ is important to establish the seller's reputation. However, __________ is essential for building buyer confidence and providing evidence of customer service.

answer

advertising; personal selling

question

Which of the following types of promotion uses customized interaction?

answer

direct marketing

question

Although the lack of control means that it is rarely the main element of a promotional campaign, __________ is an important element of most promotional campaigns.

answer

publicity

question

One of the disadvantages associated with radio as an advertising medium is that it

answer

has a perishable message.

question

Which of the following statements about comparative advertising is MOST ACCURATE?

answer

Comparative advertisements increase the perceived quality of the advertiser's brand.

question

One of the disadvantages associated with television as an advertising medium is that it

answer

is very expensive to prepare and run ads.

question

One advantage of using the yellow pages as an advertising medium is

answer

they have excellent coverage of geographic segments.

question

There are five common approaches to posttests: aided recall, unaided recall, __________, inquiry tests, and sales tests.

answer

attitude tests

question

Most advertising messages are made up of two elements, which are

answer

informational and persuasional.

question

One of the advantages associated with radio as an advertising medium is that it

answer

uses humor, sound, and intimacy effectively.

question

One of the advantages associated with radio as an advertising medium is that it

answer

can target specific audiences.

question

One of the disadvantages associated with television as an advertising medium is that it

answer

has a short exposure time.

question

Much of Google's success is based on the ten guidelines of its corporate philosophy. Guideline 3 states, "Fast is better than __________."

answer

slow

question

Geico ads that feature a talking pig, cavemen, a gecko, or a stack of money are using which type of advertising appeal?

answer

humor

question

Sampling is an appropriate strategy for which type of products?

answer

new products

question

Much of Google's success is based on the ten guidelines of its corporate philosophy. Guideline 7 states, "There's always more __________ out there."

answer

information

question

There are four commonly used forms of institutional advertising: advocacy, pioneering, competitive, and __________.

answer

reminder

question

Which of the following is NOT an aspect of identifying the target audience for an advertisement?

answer

The Federal Trade Commission (FTC) suggests that advertising program decisions be based on market research about the target audience

question

Studies indicate that comparative ads attract more attention and increase the perceived quality of the advertiser's brand although their impact may vary by product type, message content, and audience __________.

answer

gender

question

Which of the following is an important guideline when using a fear appeal?

answer

Don't make the appeal so strong that consumers will want to "tune out" the advertisement.

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