In the late 1990s, Disney and Universal both began to offer advertising opportunities to marketers. _________ led to brands appearing in movie scenes, such as an actor drinking juice from a bottle with the brand name clearly visible to an audience.

In the late 1990s, Disney and Universal both began to offer advertising opportunities to marketers. _________ led to brands appearing in movie scenes, such as an actor drinking juice from a bottle with the brand name clearly visible to an audience.

A. Innovative placement
B. Product placement
C. Social marketing
D. Brand placement
E. Creative marketing


Answer: B - In the late 1990s, Disney and Universal both began to offer advertisement opportunities to marketers. Product placement led to brands appearing in movie scenes, such as an actor drinking juice from a bottle with the brand name clearly visible to an audience. Product placement provided an innovative way to use entertainment as a vehicle for brands. Entertainment venues, such as television shows, movies, books, and plays, have held important roles in embedding advertisement without a dedicated outlet. In some cases, singers have had their music inserted into these venues through digital product placement.

Soaring Heights, Inc. is a company that offers an extreme holiday package. Vacationers can experience water rafting and other risky sports and adventure activities, which are classified as _________ needs in some consumers.

Soaring Heights, Inc. is a company that offers an extreme holiday package. Vacationers can experience water rafting and other risky sports and adventure activities, which are classified as _________ needs in some consumers.

A. Risk-taking
B. Experiential
C. Non-functional
D. Adventurous
E. Symbolic


Answer: B - Soaring Heights, Inc. is a company that offers an extreme holiday package. Vacationers can experience water rafting and other risky sports and adventure activities, which are classified as experiential needs in some consumers. Marketing communications may position risky sports or adventurous activities as fulfilling experiential needs. Experiential needs reflect a desire for sensory pleasure, variety, or high-risk, physically challenging engagement. Soaring Heights, in this example, offers to fulfill its consumers' needs for these desires through organized and well-developed engagements.

When marketing communication tools are used together, their combined effect may exceed the sum of their individual effects, a phenomenon referred to as

When marketing communication tools are used together, their combined effect may exceed the sum of their individual effects, a phenomenon referred to as

A. Endurance
B. Synergy
C. Pipeline effect
D. Salience
E. Slippage


Answer: B -When marketing communication tools are used together, their combined effect may exceed the sum of their individual effects, a phenomenon referred to as synergy. When planned and implemented well, multiple communication tools can produce greater results than tools used individually or in uncoordinated ways. For instance, television advertisements and promotional events may produce modest results individually. However, once they are combined, these methods produce greater results in brand awareness and sales than the sum of each method used without coordination.

To gauge the effectiveness of a marketing communications plan, an evaluation is recommended to examine the following factors except

To gauge the effectiveness of a marketing communications plan, an evaluation is recommended to examine the following factors except

A. Consumer attitude toward brand
B. Buying intentions
C. Brand awareness
D. Message comprehension
E. Absolute advantage


Answer: E - To gauge the effectiveness of a marketing communications plan, an evaluation is recommended to examine the following factors except absolute advantage. An evaluation of a marketing communications plan is essential for calculating its effectiveness. A number of factors are examined in this evaluation, including consumer attitude toward the brand and buying intentions. These are usually gauged through surveys and questionnaires. Another important factor is message comprehension. A difficult message is difficult to communicate to the customers. Finally, brand awareness is a reflection of a communications plan, as it indicates that customers have committed the brand to memory through advertising messages.

Out of sight, out of mind" occurs with customers if a company does not maintain brand marketplace presence. To avoid this, a marketing communications plan should emphasize

Out of sight, out of mind" occurs with customers if a company does not maintain brand marketplace presence. To avoid this, a marketing communications plan should emphasize

A. Franchising
B. Online presence
C. Momentum
D. Celebrity endorsement
E. Pass strategy


Answer: C - "Out of sight, out of mind" occurs with customers if a company does not maintain brand marketplace presence. To avoid this, a marketing communications plan should emphasize momentum. Marketplace presence is important in making certain that costumers and potential customers are continually aware of a brand. Some marketing communications plans result in campaigns that begin and stop or insufficiently promote a brand. The effectiveness of a plan relies on the continuity of the various messages (e.g., print, online, events), which should constantly remind customers of the brand.

When developing a marketing communications plan, it is important to include the following implementation decisions except

When developing a marketing communications plan, it is important to include the following implementation decisions except

A. Influencing consumer behavior
B. Mixing elements
C. Creating messages
D. Selecting desired media
E. Establishing plan momentum


Answer: A - When developing a marketing communications plan, it is important to include the following implementation decisions except influencing consumer behavior. An integrated marketing communications plan contains a well-designed marketing mix for the particular goods or services. The plan will include messages designed to target a specific population and also the media (e.g., television advertisements or events)through which the messages are promoted. Influencing consumer behavior is a product of a successful marketing communications plan.

A ___________ program is one method to build relationships with customers and increase the likelihood of future and continued engagement.

A ___________ program is one method to build relationships with customers and increase the likelihood of future and continued engagement.

A. Family brand
B. Benchmarking
C. Promotional
D. Loyalty
E. Behavior monitoring


Answer: D - A loyalty program is one method to build relationships with customers and increase the likelihood of future and continued engagement. Loyalty programs often offer discounts or early release bonuses to customers who have purchased goods and services. These programs provide a company with the opportunity to make a customer feel distinguished and appreciated. Loyalty programs help build enduring relationships with customers, which in turn allows continued sales and engagements.

Integrated marketing communications has five essential components, which must be undertaken in sequence to promote products and services successfully. Which of the following is the correct order of the first four?

Integrated marketing communications has five essential components, which must be undertaken in sequence to promote products and services successfully. Which of the following is the correct order of the first four?

A. Identify customer; Build relationships; Speak with single voice; Use contact point
B. Build relationships; Speak with single voice; Identify customer; Use contact point
C. Identify customer; Use contact point; Speak with single voice; Build relationships
D. Speak with single voice; Identify customer; Use contact point; Identify customer
E. Use contact point; Build relationships; Speak with single voice; Identify customer


Answer: C - Integrated marketing communications has five essential components, which must be undertaken in sequence to promote products and services successfully. The correct order of the first four is: identify customer; use contact point; speak with single voice; and build relationships. An integrated marketing communications plan must begin with the identification of the customer and understanding his or her needs. Following this identification, the communications plan must use a relevant contact point to gain information. Once information on the target customer is gathered, the plan must speak with a single voice and then build relationships with the customer. The final step is to affect customer behavior so that they purchase goods and services.

When Honda launched its Civic Hybrid brand, it developed a(n) ______________ marketing plan that included car and trade publications, online advertisements, and 30-second television spots.

When Honda launched its Civic Hybrid brand, it developed a(n) ______________ marketing plan that included car and trade publications, online advertisements, and 30-second television spots.

A. Integrated
B. Mixed
C. Diverse
D. Exclusive
E. Specialized


Answer: A - When Honda launched its Civic Hybrid brand, it developed an integrated marketing plan that included car and trade publications, online advertisements, and 30-second television spots. Integrated marketing communications are used in both business-to-consumer and business-to-business communications in order to promote products and services. The purpose of integrated marketing efforts is to maximize the capability of the message to reach potential consumers. Integrated marketing plans are designed to combine messaging strategies, such as print and online advertisements, publicity releases, and events.

Since its inception, the Coca Cola global brand has prided itself on being a global brand with a significant presence in most international markets. A global brand is a brand with at least ____________ of sales occurring outside the company's home country or region.

Since its inception, the Coca Cola global brand has prided itself on being a global brand with a significant presence in most international markets. A global brand is a brand with at least ____________ of sales occurring outside the company's home country or region.

A. One-fifth
B. One-eighth
C. One-half
D. One-third
E. One-quarter


Answer: D - Since its inception, the Coca Cola global brand has prided itself on being a global brand with a significant presence in most international markets. A global brand is a brand with at least one-third of sales occurring outside the company's home country or region. Corporations realize the potential of the international market when creating their brand or aiming to maximize their brand equity. Companies such as Coca Cola have products known and recognized in markets all over the world. Companies that succeed in having at least one-third of their annual sales outside a home region are seen as strong international competitors.

The Toyota symbol and McDonald's golden arches are referred to as a _______.

The Toyota symbol and McDonald's golden arches are referred to as a _______.

A. Brand architecture
B. Brand equity
C. Brand mark
D. Brand name
E. Brand destiny


Answer: C - The Toyota symbol and McDonald's golden arches are referred to as a brand mark. A brand mark is an element of a brand that cannot be spoken. Organizations develop a brand mark not only to distinguish their brand from competitors but also to have a memorable symbol in the minds of customers and clients. Brand marks are often copyrighted, and companies protect the marks as part of the overall organizational identity and branding strategy.

Companies must develop their brand through a number of sequential steps as follows:

Companies must develop their brand through a number of sequential steps as follows:

A. Research the current situation; Envision an ideal future; Combine strategy and innovation
B. Research the current situation; Combine strategy and innovation; Envision an ideal future
C. Combine strategy and innovation; Envision an ideal future; Research the current situation
D. Develop a business plan; Combine strategy and innovation; Envision an ideal future
E. Combine strategy and innovation; Envision an ideal future; Develop a business plan



Answer: A - Companies must develop their brand through a number of sequential steps as follows: research the current situation, envision an ideal future, and combine strategy and innovation. The first step in the brand development process is to research the current situation, which entails looking at what has worked or has not worked. This is a discovery period of past successes and failures. The second step is to imagine/envision an ideal future for the organization that the brand can represent. Finally, companies must combine strategy and innovation to create a brand that reflects their vision.

Brand destiny is composed of the following except ______.

Brand destiny is composed of the following except ______.

A. Ultimate dream
B. Values
C. Architecture
D. Creating value
E. Personality


Answer: C - Brand destiny is composed of the following except architecture. Brand destiny in an organization often reflects an internal guide that is available to employees but not advertised to customers or stakeholders. Brand destiny reflects the characteristics and vision that the organization holds beyond what is apparent or beyond what it holds similar to other organizations. For example, an office furniture manufacturing company may be committed to hiring local talent for the full length of its operations. Thus, among employees, company owners and executives stress that more than market share and profits, the company's dedication to local hiring and the strength of communities is its brand destiny.

Marketers at a large multinational corporation are reevaluating the company's brand following acquisition of a new group of companies. Particularly, they are interested in redefining the company's core characteristics and overall vision, also referred to as _______.

Marketers at a large multinational corporation are reevaluating the company's brand following acquisition of a new group of companies. Particularly, they are interested in redefining the company's core characteristics and overall vision, also referred to as _______.

A. Brand extension
B. Brand destiny
C. Brand architecture
D. Brand portfolio
E. Brand personality


Answer: B - Marketers at a large multinational corporation are reevaluating the company's brand following acquisition of a new group of companies. Particularly, they are interested in redefining the company's core characteristics and overall vision, also referred to as brand destiny. Brand destiny represents those values and characteristics of a company beyond making profits. For example, a basketball team may wish to be the "best of the best," not just win games. Similarly, a company like Apple may pride itself as an innovator in media and creative arts software. While there are other competitors in the market, its brand destiny distinguishes it and answers the question: why does a company exist?

Kashi Cereals began with a single cereal product and is now offering 8 different cereals with a range of additions, including raisins and flax seeds. This is an example of a _________.

Kashi Cereals began with a single cereal product and is now offering 8 different cereals with a range of additions, including raisins and flax seeds. This is an example of a _________.

A. Brand stretching
B. Brand extension
C. Product extension
D. Line extension
E. None of the above


Answer: D - Kashi Cereals began with a single cereal product and is now offering 8 different cereals with a range of additions, including raisins and flax seeds. This is an example of a line extension. When an individual product grows from a single offering to many offerings, this is called a line extension. The goal behind a line extension is to capitalize on the popularity of a product by providing greater variety to consumers. This is done by making minor feature or attribute changes, such as the addition of a new ingredient. In this example, Kashi expanded its cereal line by introducing new features.

Companies such as Apple or GAP develop and build the reputation of a corporate brand, which serves as a primary name for all products and services offered by the company because it is ________.

Companies such as Apple or GAP develop and build the reputation of a corporate brand, which serves as a primary name for all products and services offered by the company because it is ________.

A. A convenient identity across many products
B. Cost-effective in marketing communications
C. An enhancement of brand value
D. A consistent brand image
E. All of the above


Answer: E - Companies such as Apple or GAP develop and build the reputation of a corporate brand, which serves as a primary name for all products and services offered by the company because it is a convenient identity across many products, cost-effective in marketing communications, an enhancement of brand value, and a consistent brand image. A corporate brand offers a convenient identity across many products or services, which is a cost-effective method to market communications and advertisements. Additionally, a corporate brand has the potential to enhance brand value based on some or all of the brand's products. Finally, a corporate brand provides a singular identity or image that gains equity in the market based on consumer awareness and likability.

Donna Karan's Home Collection is a collection of home accessories, such as bedding, bath, and other home essentials. This Home Collection by the clothing designer is an example of a(n) __________.

Donna Karan's Home Collection is a collection of home accessories, such as bedding, bath, and other home essentials. This Home Collection by the clothing designer is an example of a(n) __________.

A. House of brands
B. Branded house
C. Endorsed brand
D. Sub-brand
E. Sponsored brand


Answer: C - Donna Karan's Home Collection is a collection of home accessories, such as bedding, bath, and other home essentials. This Home Collection by the clothing designer is an example of an endorsed brand. An endorsed brand is one that falls under a master brand, which in this case is the Donna Karan clothing label. Aligning this endorsed home collection with the master brand of the designer gives it greater credibility. It also provides greater ease with identity and image creation, as well as marketing and promotions communication. Finally, an endorsed brand can use the strength of the master brand to break into markets with existing strong competition

Marketers design brands to address the unique needs of customers in the marketplace in what is termed ________.

Marketers design brands to address the unique needs of customers in the marketplace in what is termed ________.

A. Brand portfolio
B. Brand segmentation
C. Brand growth
D. Brand building
E. Brand architecture


Answer: E - Marketers design brands to address the unique needs of customers in the marketplace in what is termed brand architecture. Similar to the work of architects who design installations and buildings, marketers must design their brand or brands so they respond to the demand and desires of customers. This design is important because it aligns a company's resources (financial, human resources, innovation) with the development and support of its brands in the market. Once this alignment occurs, marketers must design brands to maximize marketplace presence and brand awareness among customers.

Customers are much more likely to recognize a company's __________ than its specific products or services.

Customers are much more likely to recognize a company's __________ than its specific products or services.

A. Advertising
B. Brands
C. Spokespeople
D. Slogan


Answer: B - Customers are much more likely to recognize a company's brands than its specific products or services. Brands are enduring characteristics/qualities that consumers associate with a company. While products are introduced or discontinued, depending on the marketplace, a brand is an enduring reflection of the company's vision and mission. Even with extensive marketing campaigns promoting slogans and specific products, a brand is much more likely to be associated with the company's enduring qualities, such as good service or online convenience.

GrowIt collaborated with Nestle to develop a new line of healthy fruit and vegetable juices called "Healthy Drinks." Healthy Drinks is thus considered a

GrowIt collaborated with Nestle to develop a new line of healthy fruit and vegetable juices called "Healthy Drinks." Healthy Drinks is thus considered a

A. Licensed brand
B. Organic brand
C. Specialty brand
D. Multi-brand
E. Co-brand


Answer: E - GrowIt collaborated with Nestle to develop a new line of healthy fruit and vegetable juices called "Healthy Drinks." Healthy Drinks is thus considered a co-brand. Co-branding is a marketing arrangement linking two brands with one product or service. In this type of arrangement, GrowIt and Nestle develop and co-brand the line of drinks to increase the amount that customers are willing to pay. It also reduces the likelihood that the brand will be copied by private label companies.

The Heinz brand and The Johnson & Johnson Co. brand represent _______.

The Heinz brand and The Johnson & Johnson Co. brand represent _______.

A. Geographic branding
B. Family branding
C. Hospitality branding
D. Cultural branding
E. Local market branding


Answer: B - The Heinz brand and The Johnson & Johnson Co. brand represent family branding. Companies use family branding when they present several different products to a market under the same brand. Unlike individual branding, family branding has the advantage of gaining greater brand equity for a company due to significant marketplace presence and customer recognition. Another advantage offered is the standardization of marketing and promotional messages in advertisements. The disadvantage of family branding is that negative press about one product has the potential of affecting all other products under the family brand.

Marriott International has a number of different hotels named Courtyard by Marriott, Residence Inn, and Fairfield Inn in what is termed ______________.

Marriott International has a number of different hotels named Courtyard by Marriott, Residence Inn, and Fairfield Inn in what is termed ______________.

A. Individual branding
B. Family branding
C. Hospitality branding
D. Regional branding
E. Foreign market branding


Answer: A - Marriott International has a number of different hotels named Courtyard by Marriott, Residence Inn, and Fairfield Inn in what is termed individual branding. Individual branding is used by companies when their products or product lines differ significantly in performance or use. In this example, the different Marriott International hotels target individuals of markedly different economic segments and business status. Middle class vacationers are different than business travelers or high-end consumers. Individual branding may require the use of different marketing strategies for each brand, given the disparity in target consumers.

A _____________ is a company's collection of categories, brands, products, and services.

A _____________ is a company's collection of categories, brands, products, and services.

A. Brand equity
B. Investment portfolio
C. Brand portfolio
D. Brand value
E. Subordinate portfolio


Answer: C - A brand portfolio is a company's collection of categories, brands, products, and services. Similar to an investment portfolio, a brand portfolio allows a company to collect and aim to capitalize on all components related to products and services. Depending on the width and depth of product lines, companies can put together significant brand portfolios that provide a competitive edge in a market. Marketing strategies are tailored to specific aspects of a brand portfolio. Typically, companies review the brand portfolio regularly to design the correct marketing mix for specific products and services.

The Young & Rubicam Brand Asset Valuator evaluates brand equity through an assessment of four fundamental factors except __________.

The Young & Rubicam Brand Asset Valuator evaluates brand equity through an assessment of four fundamental factors except __________.

A. Differentiation
B. Accessibility
C. Esteem
D. Knowledge
E. Relevance



Answer: B - The Young & Rubicam Brand Asset Valuator evaluates brand equity through an assessment of four fundamental factors except accessibility. This valuation tool is based on consumer-based brand equity. Differentiation reflects how well a consumer can tell the brand from other brands in the market. High differentiation contributes to brand equity. Relevance reflects a company's response to customer needs and how relevant and close its products/services are to those needs. Finally, esteem refers to a brand's likability, and knowledge refers to how much a consumer knows about a brand in the long-term.

Brand value is shaped and determined on an ongoing basis by

Brand value is shaped and determined on an ongoing basis by

A. Societal relevance
B. Trusted reputation
C. Organizational commitment
D. Financial contribution
E. All of the above



Answer: E - Brand value is shaped and determined on an ongoing basis by societal relevance, trusted reputation, organizational commitment, and financial contribution. Consumer trust in a brand and the company that produces it is an important contributor to brand value. This reputation, built in the long-term, determines customer loyalty and continued use of the brand. Additionally, the perception and practice of corporate responsibility create societal relevance. This responsibility will be exemplified across a number of issues, including environmental and other philanthropic issues. Measuring brand value can be difficult due to many intangible factors, such as reputation, while organizational commitment can influence brand value in the long-term.

Despite the widespread success of its products, a small, local company that specializes in preserving fruit has not trademarked its brand, which means that it faces the possibility of its products holding ___________.

Despite the widespread success of its products, a small, local company that specializes in preserving fruit has not trademarked its brand, which means that it faces the possibility of its products holding ___________.

A. Generic product names
B. Trademarked product names
C. Copyrighted product names
D. Co-branded product names
E. Poorly copyrighted names


Answer: A - Despite the widespread success of its products, a small, local company that specializes in preserving fruit has not trademarked its brand, which means that it faces the possibility of its products holding generic product names. Product names become generic if they are not trademarked. Generic names are largely identified by type or class. Some examples of generic product names are cola and shredded wheat. Companies protect their trademarked product names against their use as generics by competitors.

A _______________ is the exclusive right held by companies to use a brand or a portion of a brand.

A _______________ is the exclusive right held by companies to use a brand or a portion of a brand.

A. Brand promise
B. Copyright
C. Brand value
D. Brand symbol
E. Co-branding


Answer: B - A copyright is the exclusive right held by companies to use a brand or a portion of a brand. Copyrights stipulate that others cannot use the brand without the express permission of the brand owner. Companies may include brand symbols or other well-known product identification components as part of a copyright. For instance, Nike may sue a manufacturer for incorporating a check mark into their logo or brand. Since companies invest heavily in brand equity, they often protect this equity through extensive copyright protections and usually resort to legal remedies for alleged uses of their brand.

Material, shape, typography, color, and composition are all elements of ______________.

Material, shape, typography, color, and composition are all elements of ______________.

A. Cultural symbolism
B. Corporate symbolism
C. Brand symbolism
D. Brand signage
E. Visual brand language


Answer: E - Material, shape, typography, color, and composition are all elements of visual brand language. Visual brand language contains unique "alphabets" of branding symbols used by marketers to develop such branding images as logos. This language communicates the company's special personality and values to the customer. It is also a central component of branding strategy, which can be applied in all marketing and promotions communication. The goal of a visual brand language is to develop a strong emotional connection with the customer that is memorable.

In its annual fundraising campaign launch in workplaces, the United Way makes sure that its logo, company information, and pamphlets are found in many places in what is referred to as ________.

In its annual fundraising campaign launch in workplaces, the United Way makes sure that its logo, company information, and pamphlets are found in many places in what is referred to as ________.

A. Brand destiny
B. Brand implementation
C. Brand promise
D. Brand exposure
E. Brand launch


Answer: B - In its annual fundraising campaign launch in workplaces, the United Way makes sure that its logo, company information, and pamphlets are found in many places in what is referred to as brand implementation. Brand implementation is the consistent and constant application of an organization's image in all products, promotional materials, signage, uniforms, and other venues of recognition and presence. In launching fundraising campaigns, organizations aim to enhance the brand's image and presence in the minds of people. The return on this implementation is exemplified in recognition and the increased likelihood of donations.

Google is considered a pioneer in offering its employees flexible working arrangements and other perks in what is termed __________.

Google is considered a pioneer in offering its employees flexible working arrangements and other perks in what is termed __________.

A. Employer loyalty
B. Employee benefits package
C. Employer signature
D. Employer brand
E. Employee loyalty


Answer: D - Google is considered a pioneer in offering its employees flexible working arrangements and other perks in what is termed employer brand. Employer brand is a relatively new term in the global management industry that distinguishes an employer as a particularly great one to have. This image is cultivated by companies through offerings to employees that their competitors do not have. Google, for instance, offers telecommuting options, on-site babysitting, and an autonomous, creative environment to employees. This would be what distinguishes the company from its competitors and makes it recognizable to employees as an employer brand.

The GAP Company purchases swimwear in bulk from several manufacturers and places its brand name on the products in what is termed ________.

The GAP Company purchases swimwear in bulk from several manufacturers and places its brand name on the products in what is termed ________.

A. Co-branding
B. Bulk purchase branding
C. Private branding
D. Collective branding
E. Partnership branding


Answer: C - The GAP Company purchases swimwear in bulk from several manufacturers and places its brand name on the products in what is termed private branding. Private branding is when a large distribution or outlet company (such as a retailer) purchases goods in bulk and applies its brand. The manufacturer from which it purchases the products has no expectation of co-branding or acknowledgment of its production. The advantages of private branding are that the retailer purchases goods in large volumes and can have flexibility in pricing. The retailer also has a higher margin of profit, as the manufacturer does not have to promote the products.

In business-to-business interaction, supplies that are needed for operations, as well as maintenance, advisory, and logistical support services, are referred to as

In business-to-business interaction, supplies that are needed for operations, as well as maintenance, advisory, and logistical support services, are referred to as

A. Facilitating products
B. Intermediary products
C. Accessory products
D. Foundation products
E. Entering products


Answer: A - In business-to-business interaction, supplies that are needed for operations, as well as maintenance, advisory, and logistical support services, are referred to as facilitating products. These supplies and services take a facilitating role in the business interaction. For example, if a company were manufacturing medical equipment, technical support and expertise would be necessary before, during, and after the sale of the equipment. Facilitating products, along with foundation goods and entering goods, are central to business marketing.

Business marketing is considered the marketing of goods and services to

Business marketing is considered the marketing of goods and services to

A. Private companies
B. Institutions, such as schools or hospitals
C. Governmental agencies
D. Non-profit organizations, such as the United Way
E. All of the above


Answer: E - Business marketing is considered the marketing of goods and services to all of the above. Business marketing differs in important ways from business-to-consumer marketing. Businesses sell these goods and services to other businesses or organizations, which use them in their operations or to further produce goods and services for sale to other businesses or the final consumer.

In its promotional materials, a PET Scan distributor notes that sales specialists will offer ____________ to provide account management through personal visits.

In its promotional materials, a PET Scan distributor notes that sales specialists will offer ____________ to provide account management through personal visits.

A. Field support
B. Prospecting
C. Personal selling
D. Administrative support
E. Cold calling



Answer: A - In its promotional materials, a PET Scan distributor notes that sales specialists will offer field support to provide account management through personal visits. Field support in the business-to-business relationship is an important component of a marketing communication and support strategy. A business that offers field support inspires confidence in the availability of post-sale technical and problem-solving expertise. For the seller, the extra effort of field support through personal visits provides a core component of the marketing message.

A hospital places an order for its customary human resources software upgrade with a new specification for management reports. This is an example of a _________.

A hospital places an order for its customary human resources software upgrade with a new specification for management reports. This is an example of a _________.

A. Specified rebuy
B. Straight rebuy
C. Modified rebuy
D. Upgraded rebuy


Answer: C - A hospital places an order for its customary human resources software upgrade with a new specification for management reports. This is an example of a modified rebuy. A modified rebuy occurs when an organization has past dealings with a seller in purchasing the same items. However, when there is a minor change in the nature of the order, such as the addition of a specification to the human resources software upgrade, the company must modify its order. Specifications are one type of modification in a buyer-seller interaction. Other possible modifications include a request for different pricing, a change in the quantity of an order, or a change in the proficiency and needs of individuals in the organization.

Successful marketing to a business requires a thorough understanding of roles in the company's buying center. A ___________ is an individual who controls the flow and type of product information that is available to others in the buying center.

Successful marketing to a business requires a thorough understanding of roles in the company's buying center. A ___________ is an individual who controls the flow and type of product information that is available to others in the buying center.

A. Decider
B. Influencer
C. User
D. Initiator
E. Gatekeeper


Answer: E - Successful marketing to a business requires a thorough understanding of roles in the company's buying center. A gatekeeper is an individual who controls the flow and type of product information that is available to others in the buying center. Product or service information is seminal to the business-to-business interaction. A gatekeeper in an organization determines not only what information comes into the buying center, but also the type of information that is available to sellers. For example, the gatekeeper determines which marketing communications or promotional materials are available to the influencer or decision maker in the organization.

A local shopping center requires recurring purchases of cleaning supplies, which it buys from a local supplier. Since the quantities and types are always known, the interaction is completed with little paperwork or need for reevaluation in what is referred to as _________.

A local shopping center requires recurring purchases of cleaning supplies, which it buys from a local supplier. Since the quantities and types are always known, the interaction is completed with little paperwork or need for reevaluation in what is referred to as _________.

A. Task reselling
B. Old task selling
C. Straight rebuy
D. Old task buying
E. Mediated rebuy



Answer: C - A local shopping center requires recurring purchases of cleaning supplies, which it buys from a local supplier. Since the quantities and types are always known, the interaction is completed with little paperwork or need for reevaluation in what is referred to as straight rebuy. Companies streamline and automate their purchase of continuous or recurring supplies or equipment. When these companies have mutually satisfactory business dealings with their suppliers, the purchase of goods or services is done with little effort or consideration of better alternatives. Ultimately, this arrangement is cost effective for both buyers and sellers.

In classifying goods in the business market, the following are foundation goods EXCEPT

In classifying goods in the business market, the following are foundation goods EXCEPT

A. Office equipment
B. Light factory equipment
C. Raw steel
D. Building and land rights
E. Fixed equipment


Answer: C - In classifying goods in the business market, the following are foundation goods except raw steel. Foundation goods are capital items that are sold in the business market and represent a significant proportion of a business's costs. Foundation goods become depreciated with use and are often sold in reseller markets. Raw steel is not considered a foundation good, but rather a component of entering goods.

3M's marketing campaigns emphasize its role in improving but not manufacturing products. This is an example of ___________, whereby a company reaches for the final consumer despite not selling or dealing with that consumer directly.

3M's marketing campaigns emphasize its role in improving but not manufacturing products. This is an example of ___________, whereby a company reaches for the final consumer despite not selling or dealing with that consumer directly.

A. Stimulating demand
B. Fluctuating demand
C. Derived demand
D. Indirect demand
E. Contingent demand


Answer: A - 3M's marketing campaigns emphasize their role in improving but not manufacturing products. This is an example of stimulating demand, whereby a company reaches for the final consumer despite not selling or dealing with that consumer directly. Stimulating demand occurs when a business marketer (which normally deals with other businesses) makes the final consumer aware of their activities. In this example, 3M may improve the proficiency and safety of products it sells to other businesses, but it promotes its activities to the final consumer of these products.

The production of a Toyota Prius involves over 100 suppliers or business marketers. The consumer demand for the car triggers ____________ demand.

The production of a Toyota Prius involves over 100 suppliers or business marketers. The consumer demand for the car triggers ____________ demand.

A. Linked
B. Derived
C. Fluctuating
D. Stimulating
E. Controlled


Answer: B - The production of a Toyota Prius involves over 100 suppliers or business marketers. The consumer demand for the car triggers derived demand. Derived demand refers to the link that exists between consumer demand for a product and the business market for the manufacture of that product. In this example, the Toyota Prius's manufacture involves over 100 suppliers, who provide parts, equipment, expertise, and logistic support. All of these business marketers ultimately rely on the fact that there is consumer demand for this car.

Business marketing strategies are increasingly encouraging partnership-type engagements between businesses. These engagements include:

Business marketing strategies are increasingly encouraging partnership-type engagements between businesses. These engagements include:

A. Customized products and services
B. Reliable support services
C. Ongoing information services
D. Product decisions alignment
E. All of the above


Answer: E - Business marketing strategies are increasingly encouraging partnership-type engagements between businesses. These engagements include all of the above. Business marketing strategies are now framed as collaborative partnerships between businesses through which they learn of each other's businesses. Also included in these partnerships is the provision of reliable support services and ongoing information services before and after sales. Finally, the companies align product decisions, such as suppliers, shipping, and handling.

Rupert's Technology is a software development company that produces educational software for private and public organizations. The company is especially well-known for its capability to observe changes in the market and how customers respond to marketing efforts, which is referred to as ________.

Rupert's Technology is a software development company that produces educational software for private and public organizations. The company is especially well-known for its capability to observe changes in the market and how customers respond to marketing efforts, which is referred to as ________.

A. Market-linking capability
B. Research-sensing capability
C. Market-sensing capability
D. Customer-linking capability
E. Control-system capability


Answer: C - Rupert's Technology is a software development company that produces educational software for private and public organizations. The company is especially well-known for its capability to observe changes in the market and how customers respond to marketing efforts, which is referred to as market-sensing capability. In a business-to-business interaction, companies must be sensitive to how well their customers are responding to marketing communications and promotions. Given the nature of competition, a company such as Rupert's Technology would do well to keep a close eye on the market and adjust marketing and development efforts to any shifts that occur.

International marketers conduct a great deal of their business-to-business deals with governments. As a buyer, governments offer many advantages to a seller except

International marketers conduct a great deal of their business-to-business deals with governments. As a buyer, governments offer many advantages to a seller except

A. Gaining enormous returns
B. Access to legislative channels
C. Significant bureaucratic processes
D. Purchase of goods and services in large quantities
E. Ease of transport facilitation


Answer: C - International marketers conduct a great deal of their business-to-business deals with governments. As a buyer, governments offer many advantages to a seller except significant bureaucratic processes. Governments as buyers offer many advantages to businesses and corporations, including the purchase of goods and services in large quantities. These allow for high returns on investment. Governments are also capable of using a nation's transport capabilities to import goods, and legislative power to negotiate trade agreements. However, governments can also be frustrating as buyers because of red tape and restrictions on sellers, such as complicated bidding steps.

Marketing strategies must take cultural variation into account, especially in business-to-business dealings. While receiving a small gift is accepted in Japan, doing so in Germany may be construed as _________.

Marketing strategies must take cultural variation into account, especially in business-to-business dealings. While receiving a small gift is accepted in Japan, doing so in Germany may be construed as _________.

A. Bribery
B. Facilitation
C. Expediency
D. Fierce competitiveness
E. Cultural nuance


Answer: A - Marketing strategies must take cultural variation into account, especially in business-to-business dealings. While receiving a small gift is accepted in Japan, doing so in Germany may be construed as bribery. Marketers must understand how the overall culture in a country views business interactions and the exchange of gifts. In many countries, business people are severely discouraged from accepting personal gifts. In Japan or China, however, giving a gift in the first meeting is considered a sign of graciousness and a reflection of a business person's willingness to engage in business.

Sony created a 5-minute promotional video of its upcoming action film based on a video game. The company sent it to video game stores and chains across the country in a(n) ______________ campaign.

Sony created a 5-minute promotional video of its upcoming action film based on a video game. The company sent it to video game stores and chains across the country in a(n) ______________ campaign.

A. Social media marketing
B. Direct mail marketing
C. Niche business marketing
D. Online marketing
E. Outdoor advertising


Answer: B - Sony created a 5-minute promotional video of its upcoming action film based on a video game. The company sent it to video game stores and chains across the country in a direct mail marketing campaign. In a direct mail marketing campaign, a company will send promotional materials, such as videos and materials, to retailers selling their products. In this instance, Sony has sent this 5-minute video to all video game stores and chains, as dedicated consumers are likely to be exposed to the video and view it.

Managers use _______________ to organize decision-making roles in a company and to further expand on the multifunctional nature of business-to-business marketing.

Managers use _______________ to organize decision-making roles in a company and to further expand on the multifunctional nature of business-to-business marketing.

A. Strategy development
B. Data analysis
C. Organizational charting
D. Responsibility charting
E. Growth forecasting


Answer: D - Managers use responsibility charting to organize decision-making roles in a company and to further expand on the multifunctional nature of business-to-business marketing. Different functional areas in an organization (e.g., sales, administration, etc.) play different roles in making business marketing decisions. For example, the role of "responsible" decision maker could be a manager who has explored alternatives and made comparative analyses among companies. The role of "approve" may be another manager with the ultimate authority to approve or reject a business proposal.

Unlike consumer markets, where brand awareness occurs through extensive advertising, business-to-business companies are more likely to build brand image through _________.

Unlike consumer markets, where brand awareness occurs through extensive advertising, business-to-business companies are more likely to build brand image through _________.

A. Gatekeeper relationships
B. Logistics branding
C. Cold calling
D. Personal contacts in buyer-seller relationships
E. Advanced advantage


Answer: D - Unlike consumer markets, where brand awareness occurs through extensive advertising, business-to-business companies are more likely to build brand image through personal contacts in buyer-seller relationships. Personal contacts in business marketing occur through personnel with differing roles and decision-making capacities. Both buyer and seller in business marketing are concerned about their organization's goals and profitability. Additionally, economic and functional benefits are gained from business marketing relationships.

According to researchers, there are five business-to-business relationship features that impact marketing:

According to researchers, there are five business-to-business relationship features that impact marketing:

A. Trust, distance, commitment, influence, loyalty
B. Commitment, bonds, information sharing, influence, loyalty
C. Trust, distance, commitment, bonds, information sharing
D. Trust, distance, strategy, stakeholders, segmentation
E. Commitment, bonds, information sharing, segmentation, ethno-diffusion


Answer: C - According to researchers, there are five business-to-business relationship features that impact marketing: trust, distance, commitment, bonds, information sharing. Trust in business-to-business relationships embodies such qualities as benevolence, honesty, and competence. Distance in these relationships is due to a number of factors, including social, cultural, technological, and geographical. Commitment refers to inputs and outputs in the relationship, while bonds can be social, structural, or economic. Finally, information sharing involves mutual disclosure of business-related information.

Kenmore appliances (sold by Sears) are an example of a(n)

Kenmore appliances (sold by Sears) are an example of a(n)

A. dealer brand

B. manufacturers' brand

C. licensed brand

D. individual brand

E. family brand


Answer: (E) Kenmore is a family brand (brand name for several products) of Sears, so (E) is the correct choice. Dealer brands (A) such as Ace Hardware are created by middlemen. Manufacturer brands (B) are created by manufacturers and include brands such as Whirlpool, Ford, and IBM. A licensed brand (C) is a well-known brand that sellers pay to use, such as Walt Disney. An individual brand name (D) separates brand names for each product.

Annie loves her Guess jeans. She wants another pair of Guess jeans, but if there is a brand that has a lower price with similar quality, she will buy that pair instead. This is an example of

Annie loves her Guess jeans. She wants another pair of Guess jeans, but if there is a brand that has a lower price with similar quality, she will buy that pair instead. This is an example of

A. brand recognition

B. brand preference

C. brand insistence

D. nonrecognition

E. None of the above


Answer: (B) Annie prefers Guess jeans but may choose another brand if it has a lower price and similar quality. This is called brand preference. In brand recognition (A) you may not intend to purchase the product but you recognize the brand name. If Annie refused to buy any other jeans but Guess jeans, she would show brand insistence (C). Brand nonrecognition (D) is when the final consumers do not recognize a brand. Because (B) is the correct answer, (E) could not be correct.

The "law of diminishing returns" states that

The "law of diminishing returns" states that

A. the demand for any product will tend to decline over time

B. the more of a product a person buys, the less utility that particular product offers him

C. if the price of a product is lowered, a smaller quantity will be demanded

D. if the price of a product is lowered, quantity demanded stays the same

E. if the price of a product is raised, a smaller quantity will be demanded


Answer: (E) The law of diminishing returns states that as the price of a product increases, the quantity demanded of the same product declines (E). As such, the graph of demand versus price is a downward-sloping straight line. None of the other choices correctly depicts the law of diminishing returns.

ABC Company segmented its broad product market and decided to target two segments, offering each segment a different marketing mix. Which approach is ABC Company following?

ABC Company segmented its broad product market and decided to target two segments, offering each segment a different marketing mix. Which approach is ABC Company following?

A. Differentiated segmentation

B. Concentrated segmentation

C. Mass marketing

D. Green marketing

E. Societal marketing


Answer: (A) Differentiated segmentation takes place when a firm offers different marketing mix elements to various segments of customers just as described in this question. Therefore, (A) is the correct answer. Concentrated segmentation (B) occurs when a firm pursues just one segment of consumers with a unique marketing mix. That is not the case in this question. Mass marketing (C) is incorrect since it does not involve any segmentation at all. Green marketing (D) is environmentally friendly marketing, which has nothing to do with the question. Similarly, societal marketing (E) is a marketing philosophy that tries to balance consumers' short-term needs with societal welfare. This too is irrelevant with respect to the question, so (E) is incorrect.

Sylvia Garcia brings buyers and sellers together. She is called a

Sylvia Garcia brings buyers and sellers together. She is called a

A. selling agent

B. commission merchant

C. broker

D. manufacturers' agent

E. rack jobber


Answer: (C) Brokers bring buyers and sellers together; Sylvia Garcia is a broker. Selling agents (A) are responsible for the marketing job for producers. A selling agent may handle the entire output of one or more producers. Commission merchants (B) handle products shipped to them by sellers, complete the sale, and send the money, minus their commission, to each seller. Manufacturers' agents (D) sell similar products for several non-competing producers, for a commission on what is sold. Rack jobbers (E) specialize in nonfood products sold through grocery stores and supermarkets, often displayed on wire racks owned by the rack jobber.

Some of the features of cash-and-carry wholesalers include

Some of the features of cash-and-carry wholesalers include

A. catering to retailers too small to be served profitably by service wholesalers

B. accepting only cash

C. delivering products that they stock in their own trucks

D. taking title to the products they sell, but not actually handling stocking or delivering them

E. Both (A) and (B)


Answer: (E) Cash-and-carry wholesalers will only accept cash (B). Some retailers, such as small auto repair shops, are too small to be served profitably by a service wholesaler, so the cash-and-carry wholesalers cater to these types of businesses on a cash basis (A). A truck wholesaler delivers products that they stock in their own trucks (C). Drop shippers take title to the products they sell, but do not handle, stock, or deliver them (D).

Market segmentation

Market segmentation

A. assumes that most markets can be satisfied by the same marketing mix

B. is the same thing as positioning

C. tries to identify homogeneous submarkets within a larger market

D. means the same thing as marketing mix

E. identifies homogeneous and heterogeneous submarkets


Answer: (C) Market segmentation is the process of dividing a large, heterogeneous market comprised of consumers with diverse needs into smaller, homogeneous submarkets (C). The notion of segmentation runs contrary to the assumption that most markets can be satisfied with the same offering (A). Segmentation may precede positioning in the overall scheme of target marketing, but they are clearly not the same thing, so (B) is false. Likewise, segmentation is not the same as a marketing mix since the latter involves the product, place, price, and promotion strategies of a firm, so (D) too is incorrect. (E) is incorrect since market segmentation actually tries to isolate homogeneous submarkets within the total heterogeneous market.

A service wholesaler that carries a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, etc., is called a

A service wholesaler that carries a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, etc., is called a

A. single-line wholesaler

B. general merchandise wholesaler

C. specialty wholesaler

D. rack jobber

E. limited-function wholesaler


Answer: (B) General merchandise wholesalers originally developed to serve the early retailers such as general stores, which carry a wide variety of nonperishable items. Single-line wholesalers (A) carry a narrower line of merchandise than general merchandise wholesalers. Specialty wholesalers (C) carry an even more narrow range of products and offer more information and services than other types of service wholesalers. Rack jobbers (D) specialize in nonfood products sold through grocery stores and supermarkets, often displayed on wire racks owned by the rack jobber. Limited function wholesalers (E) provide only limited wholesaling functions.

Service wholesalers provide all the wholesaling functions. Service wholesalers include

Service wholesalers provide all the wholesaling functions. Service wholesalers include

A. general merchandise wholesaler

B. single-line (general-line) wholesaler

C. specialty wholesaler

D. All of the above

E. None of the above


Answer: (D) Service wholesalers can be broken down into general merchandise wholesalers (A), single-line (general-line) wholesalers (B), or specialty wholesalers (C). The correct answer is (D).

Marine-Unlimited buys tropical fish from local fish growers. The company takes title to the tropical fish for some period of time before selling to the many pet shops around the area on a cash or credit basis. Marine Unlimited is called a

Marine-Unlimited buys tropical fish from local fish growers. The company takes title to the tropical fish for some period of time before selling to the many pet shops around the area on a cash or credit basis. Marine Unlimited is called a

A. cash-and-carry wholesaler

B. rack jobber

C. producers' cooperative

D. mail-order wholesaler

E. merchant wholesaler


Answer: (E) Merchant wholesalers own (take title to) the products they sell. Cash-and-carry wholesalers (A) operate as service wholesalers, except that the customer must pay cash. Rack jobbers (B) specialize in nonfood products sold through grocery stores and supermarkets, often displayed on wire racks owned by the rack jobber. Producers' cooperatives (C) operate almost as full-service wholesalers with the profits going to the cooperative's customer members. Mail-order wholesalers (D) sell out of a catalog that may be distributed widely to smaller industrial customers or retailers who might not be called on by other middlemen.

Which of the following activities do wholesalers perform?

Which of the following activities do wholesalers perform?

A. Store inventory

B. Supply capital

C. Reduce credit risk

D. Provide market information

E. All of the above


Answer: (E) Wholesalers can store inventory (A) to reduce a producer's need to carry large stocks, thus cutting the producer's warehousing expenses; supply capital (B) to reduce a producer's need for working capital by buying the producer's output and carrying it in inventory until it is sold; reduce credit risk (C) by selling to customers the wholesaler knows and taking the loss if these customers do not pay; and provide market information (D) as an informed buyer and seller closer to the market. The wholesaler reduces the producer's need for market research. All of the above (E) is the correct answer.

The most risky and challenging marketing opportunities involve

The most risky and challenging marketing opportunities involve

A. product development

B. diversification

C. market penetration

D. market development

E. All of the above are equally risky


Answer: (B) Among the four types of growth opportunities described in the question, diversification (B) would be most risky because it involves marketing new products in new markets. In other words, both the product and market are brand new in the case of diversification and that increases the uncertainty level along with risk.

According to the U.S. Census Bureau, wholesalers are defined as those who sell to

According to the U.S. Census Bureau, wholesalers are defined as those who sell to

A. retailers and other merchants

B. industrial users

C. institutional users

D. commercial users

E. All of the above


Answer: (E) The U.S. Bureau of the Census defines wholesaling as concerned with activities of those persons or establishments that sell to retailers and other merchants (A), and/or to industrial (B), institutional (C), and commercial (D) users. Therefore, (E) is the correct answer.

Price fixing falls under which act or amendment?

Price fixing falls under which act or amendment?

A. Robinson-Patman Act

B. Wheeler Lea Amendment

C. Sherman Act

D. Unfair Trade Practice Acts

E. Lanham Act


Answer: (C) The Sherman Act covers price fixing; therefore, (C) is the correct answer. The Robinson-Patman Act (A) makes it illegal to sell the same products to different buyers at different prices. The Wheeler Lea Amendment (B) bans unfair or deceptive acts in commerce. The Unfair Trade Practice Acts (D) put a lower limit on prices. The Lanham Act (E) prohibits a company from misrepresenting another companies' products.

Which of the following makes illegal selling the same products to different buyers at different prices?

Which of the following makes illegal selling the same products to different buyers at different prices?

A. Wheeler Lea Amendment

B. Unfair Trade Practice Acts

C. Robinson-Patman Act

D. Magnuson-Moss Act

E. Lanham Act


Answer: (C) The Robinson-Patman Act makes it illegal to sell the same products to different buyers at different prices; therefore, (C) is the correct choice. The Wheeler Lea Amendment (A) bans unfair or deceptive acts in commerce. The Unfair Trade Practice Acts (B) puts a lower limit on prices. The Magnuson-Moss Act (D) is a law requiring that producers provide a clearly written warranty for consumer products. The Lanham Act (E) prohibits a company from misrepresenting another companies' products.

Which of the following terms allows a buyer to take a 4 percent discount off the face value of the invoice if the invoice is paid within 20 days, and if not, the full face value of the invoice becomes due in 60 days?

Which of the following terms allows a buyer to take a 4 percent discount off the face value of the invoice if the invoice is paid within 20 days, and if not, the full face value of the invoice becomes due in 60 days?

A. 20/60, net 4

B. 2/10, net 60

C. 2/10, net 30

D. 10/4, net 60

E. 4/20, net 60


Answer: (E) This billing method is utilized by producers to encourage the early payment of invoices. It helps to increase cash flow for the manufacturer or producer. Most buyers take advantage of these types of terms because it allows a substantial savings on the purchase. (A), (B), (C), and (D) are different terms allowing for different discounts. They may not even make sense, and are thus incorrect choices.

Which of the following discounts refer to a list price reduction given to channel members for the specific jobs they are doing for the manufacturer or producer?

Which of the following discounts refer to a list price reduction given to channel members for the specific jobs they are doing for the manufacturer or producer?

A. Quantity discounts

B. Cash discounts

C. Trade discounts

D. Cumulative quantity discounts

E. Seasonal discounts


Answer: (C) Trade discounts, also known as functional discounts, are given for various activities performed by the channel member for the producer. Quantity discounts (A) are given to encourage volume purchases. Cash discounts (B) are given to encourage buyers to pay their bills early. Cumulative quantity discounts (D) are give to encourage volume purchases like quantity discounts, but allow the purchaser to buy products at different times until they have accumulated enough in purchases to qualify for a volume discount. Seasonal discounts (E) are given to encourage buyers to purchase products early, and out-of-season, to free up space for the manufacturer, among other reasons.

The type of price policy that tries to sell the top of the demand curve utilizing a high price, before aiming at more price-sensitive consumers, is called

The type of price policy that tries to sell the top of the demand curve utilizing a high price, before aiming at more price-sensitive consumers, is called

A. skimming pricing

B. flexible pricing

C. one-price policy

D. penetration pricing

E. odd/even pricing



Answer: (A) With the introduction of every new product, there is a group of consumers willing to pay premium prices to try it. This provides an opportunity to launch the product at higher prices before competition forces the prices down. The skimming policy attempts to "skim the cream" off of the top of the market, thus recouping research and development costs early on prior to reducing the price for the rest of the market. Flexible pricing (B) refers to offering different prices to different customers, and is incorrect. One-price policies (C) are policies that offer products to the customers for the same price. Penetration pricing (D) refers to offering the product to the market with an initial low price, and is the opposite of skimming. Odd/ even pricing (E) is a form of psychological pricing, setting prices with odd or even endings depending on consumer perception, and is an incorrect response.

A key point regarding sales-oriented objectives is

A key point regarding sales-oriented objectives is

A. a larger market share, if gained at too low a price, may lead to a success with no profits

B. aggressive companies often aim to increase market share

C. larger sales volume, by itself, does not necessarily lead to higher profits

D. it is never easy to measure a firm's market share when determining if there is profit maximization

E. All of the above are correct


Answer: (C) Larger sales volumes do not necessarily lead to higher profits for a company. (A) and (B) may be objectives but are too vague, and are incorrect in reference to sales-oriented objectives. (D) is incorrect. It would be a correct answer if it read "...usually easier to measure a firm's market share..." rather than "...never easier...." (E) is incorrect because all of the other answers are not true.

Which of the following is the best response for the statement, "Anyone seeking a profit maximization objective will charge high prices"?

Which of the following is the best response for the statement, "Anyone seeking a profit maximization objective will charge high prices"?

A. This is always true.

B. This is not always true.

C. Prices will always be higher than the competitor's.

D. Prices tend to stay below the competitor's prices.

E. None of the above relate to the statement.


Answer: (B) Pricing to achieve maximization of profits does not always lead to higher prices. Demand and supply may bring high prices if the competition cannot offer a good substitute product. (A) is incorrect. High prices are not always charged in order to develop profit maximization. (C) and (D) are incorrect because the price of competition is usually developed based upon the elasticity of price for a given product or market. (E) is not the correct choice, because one of the other answers is correct.

During the market introduction phase of the product life cycle, the basic promotional objective is informing. If the product is a really new idea, the promotion needs to develop and build demand. This demand is known as

During the market introduction phase of the product life cycle, the basic promotional objective is informing. If the product is a really new idea, the promotion needs to develop and build demand. This demand is known as

A. final demand

B. primary demand

C. secondary demand

D. tertiary demand

E. selective demand


Answer: (B) Primary demand is building demand for an entire product category (i.e., coffee) rather than a specific brand (i.e., Maxwell House). (A) is incorrect because final demand does not exist. Secondary demand (C) is also incorrect for the same reason. Tertiary demand (D) is another fictitious term and is incorrect. Selective demand (E) is creating demand for a specific brand rather than an entire product category, and does not fit as an answer for this particular question.

Consider the following scenario. A company's sales force workload is 60,000 calls per year; the average salesperson can make 1,000 calls per year. Using the workload approach, how many salespeople does the company need?

Consider the following scenario. A company's sales force workload is 60,000 calls per year; the average salesperson can make 1,000 calls per year. Using the workload approach, how many salespeople does the company need?

A. 60

B. 50

C. 55

D. 10

E. 600


Answer: (A) A simple arithmetic question. The total sales workload is 60,000 calls per year. One salesperson on average can make 1,000 calls per year. Therefore, in order to find out how many salespeople are needed to cover the entire workload, one will have to divide 60,000 by 1,000. The correct answer is 60 (60,000/1,000).

A local race car driver who displays advertising on his car is involved in

A local race car driver who displays advertising on his car is involved in

A. cause-related marketing

B. mobile marketing

C. sponsorship marketing

D. event marketing

E. green marketing


Answer: (C) This is a clear case of sponsorship marketing (C), which happens to be the right answer. In sponsorship marketing, a firm usually pays a celebrity to display the corporate name and/or logo usually on their apparel or automobile in order to give the firm added advertising mileage. In this question, that is what the race car driver (celebrity) is doing on behalf of his/her "sponsor."

A Hispanic fiesta funded by a food company is an example of

A Hispanic fiesta funded by a food company is an example of

A. sponsorship marketing

B. cause-related marketing

C. green marketing

D. event marketing

E. guerrilla marketing


Answer: (D) A Hispanic fiesta event funded by a food company is an example of event marketing (D). Thus, (D) is the right answer. The only other choice that may have come close to the right answer is sponsorship marketing (A). However, there is no evidence in the question to indicate that the food company is promoting its name during the fiesta, so (A) ought to be ruled out. Cause-related marketing programs involve a partnership between profit and non-profit organizations to benefit a social cause. Since there is no evidence of a social cause in this question, (B) is incorrect. Green marketing is environmentally friendly marketing practices. There is no indication of this in the question, so (C) is incorrect. Finally, (E) is untrue because there is no evidence of covert guerilla marketing tactics being used in this question.

Regarding direct marketing programs, which of the following statements is TRUE?

Regarding direct marketing programs, which of the following statements is TRUE?

A. They bypass wholesalers.

B. They target a general audience.

C. They are being used less frequently than in the past decade due to changes in technology.

D. They rely solely on postal mail.

E. They include newspaper and magazine advertising.


Answer: (A) Direct-marketing programs are witnessing robust growth in the current years, so (C) is incorrect. One of the reasons why firms are switching from media advertising to direct marketing is because direct marketing targets a specific audience, thus reducing "waste." That rules out (B). (D) is also false since direct marketing media encompasses a variety of options including e-mail, telemarketing, and postal mail; however, it does not include newspaper and magazine advertising (E). The only true statement is the fact that direct marketing bypasses middlemen such as wholesalers (A).

It is MOST difficult to measure the response rate in

It is MOST difficult to measure the response rate in

A. coupon redemptions

B. billboard advertisements

C. Internet inquiries

D. direct mail responses

E. telemarketing


Answer: (B) Measuring the response rate of a promotion campaign is an important aspect of a firm's overall promotion strategy. The task of measurement is relatively easier in the case of direct marketing compared to media advertising. Coupon redemptions (A), Internet inquiries (C), direct-mail responses (D), and telemarketing (E) are various forms of direct marketing. However, billboard ads (B) are not part of a direct marketing campaign. As such, it is difficult to measure the effectiveness of a billboard ad and that is the best response to this question.

Sending out unsolicited e-mail ads is referred to as

Sending out unsolicited e-mail ads is referred to as

A. viral marketing

B. personalized marketing

C. publicity

D. spamming

E. brand equity


Answer: (D) Spamming (D) is the term given to sending out unsolicited e-mail en masse.

Which of the following statements about personal selling is (are) true?

Which of the following statements about personal selling is (are) true?

A. There should be a desire to combine mass selling and sales promotion with personal selling.

B. It has flexibility.

C. It is direct spoken communication between buyer and seller.

D. It is expensive, especially per contact.

E. All of the above.


Answer: (E) All of the statements reflect personal selling and are true. Personal selling is part of the promotional mix of marketing. In order to make it more effective, there should be a desire to combine aspects of advertising and sales promotion (A), although this is not the most correct response. Personal selling is the most flexible (B) of all of the promotion variables; however, this is not the most correct response. (C) is true, however, not the most correct response. Personal selling is expensive (D), especially per contact, and this is one of the reasons it should be combined with the other promotional mix variables. This, however, is not the best response.

A reference group may influence one's purchases because

A reference group may influence one's purchases because

A. they are members of the same social class

B. they are part of middle-class America

C. people make comparisons between themselves and others, or try to imitate other's behavior or purchase decisions

D. having a mink coat is considered a status symbol

E. an opinion leader is a person who influences others in the group


Answer: (C) A reference group may influence one's purchase behavior because people make comparisons between themselves and others. Reference groups are the social, economic, or professional groups an individual uses to evaluate their opinions or beliefs. A social class (A) is a group of people who have approximately equal social position as viewed by society. (B) is not relevant to the question at hand and is incorrect. (D) may be a status symbol, but this has no bearing on the question, so it is incorrect. An opinion leader (E) may be part of a reference group, but this refers to an individual rather than a group.

"Psychographics" is (are)

"Psychographics" is (are)

A. lifestyle analyses

B. the study of "who wears the pants in the household" in terms of purchases

C. an analysis of a person's day-to-day pattern of living expressed as activities, interests, and opinions

D. an analysis of geographic areas for competitive study

E. Only (A) and (C) are correct


Answer: (E) Both lifestyle analyses and an analysis of a person's day-to-day living are referred to as psychographics. (A) is a true statement, but is not the best answer. (B) is totally made up and therefore incorrect. This is not a definition of a psychographic. (C) is true, but not the best choice. (D) refers to geographics, or locations of consumers.

Countertrade is

Countertrade is

A. illegal in the U.S.

B. found only in planned economies

C. a transaction that may not involve an exchange of money

D. found only in subsistence economies

E. Both (B) and (D) are true


Answer: (C) Countertrade is a form of market exchange in international business that need not involve the use of money. Bartering is the oldest and simplest form of countertrade. Therefore, (C) is the right choice. Countertrade is definitely not an illegal activity in the U.S. (A). It is practiced in planned as well as market-oriented economies, so (B) is false. (D) is false because subsistence economies are by definition self-sufficient so they do not engage in any form of trade. Finally, (E) is false since it claims that both (B) and (D) are true.

Differences in perceptions affect how consumers gather and interpret information from their environment. The selective processes influencing these perceptions include

Differences in perceptions affect how consumers gather and interpret information from their environment. The selective processes influencing these perceptions include

A. selective retention

B. selective perception

C. selective exposure

D. selective response

E. Only (A), (B), and (C) are correct


Answer: (E) Selective retention, selective perception, and selective exposure all comprise the selective processes. Selective retention (A) means that we remember only what we want to remember, and is true, but is not the most correct response. Selective perception (B) refers to the fact that we screen out ideas, or modify those ideas and messages that conflict with what we have already learned and with our beliefs, and is true, but not the most correct response. Selective exposure (C) means that our eyes and minds seek out and notice only what interests us; we selectively expose ourselves to our environment. However, it is not the most correct answer. Selective response (D) is fictitious. A response, however, is an effort to satisfy a need. This is an incorrect answer.

In relation to Maslow's hierarchy of needs, the need for self-esteem, accomplishment, fun, freedom, and relaxation are attributed to which of the following needs?

In relation to Maslow's hierarchy of needs, the need for self-esteem, accomplishment, fun, freedom, and relaxation are attributed to which of the following needs?

A. Physiological

B. Safety

C. Self-actualization

D. Love and belongingness

E. Esteem, love and belongingness


Answer: (E) When striving to satisfy basic human needs such as accomplishment, fun, relaxation, and others as stated in the other answers, individuals would find themselves in both the self-esteem needs level and the love and belongingness needs level of the hierarchy. Physiological needs (A) are needs for food, drink, rest, and sex. Safety needs (B) are needs for protection or wellbeing. Self-actualization (C) is also incorrect. This needs level refers to people who strive for total fulfillment of their maximum capabilities, and is only reached by a small portion of the population. Love and belongingness (D) is a good answer; however, it is not the best choice.

A tariff is a

A tariff is a

A. limit on the amount of goods the importing country will accept

B. tax levied by a government against imported products

C. total ban on imports

D. method of entering a foreign market through a licensing arrangement

E. boycott of imports by the steel industry of the U.S.


Answer: (B) A tariff, by definition, is a tax imposed on imports (B). Therefore, this is the correct answer. A quota is a quantitative restriction on the amount of goods that can be imported from a country (A). A boycott is defined as a total ban on imports (C). Franchising is defined as a mode of entering foreign markets through licensing arrangements (D). Finally, (E) is incorrect because it too discusses a boycott rather than a tariff.

When groups of shippers pool their shipments together, what is this called?

When groups of shippers pool their shipments together, what is this called?

A. Containerization

B. Piggyback service

C. Pool car service

D. Diversion in transit

E. Birdyback service


Answer: (C) To offset the shortcomings of low speed and high cost, and still get business from small shippers, railroads allow groups of shippers to pool like goods into a full car. This is termed pool car service. Containerization (A) is incorrect. It refers to the grouping of individual items into economical shipping quantities. Piggyback service (B) refers to the loading of truck trailers onto railroad cars for transportation and is incorrect. Diversion in transit (D) is also incorrect. This refers to the redirection of carloads already in transit. Birdyback service (E) refers to loading trucks or trailers onto airplanes for faster transport to their place of destination. This answer is also incorrect.

The Wall Street Journal has been trying to attract new customers by promoting its newspaper for student use in business classes. This is an example of

The Wall Street Journal has been trying to attract new customers by promoting its newspaper for student use in business classes. This is an example of

A. product development

B. diversification

C. market penetration

D. market development

E. target marketing


Answer: (D) This question relates to the four types of growth opportunities that firms may pursue. Product development (A) is marketing new products for existing customers. Since the WSJ is trying to attract new customers, (A) is incorrect. Diversification (B) is marketing new products to new markets. Since WSJ hasn't changed its "product," (B) is incorrect. Market penetration (C) is a growth strategy that involves selling existing products in existing markets, so this too is incorrect. Target marketing (E) is incorrect since it is too broad and doesn't specifically address the situation described in the question. The correct answer is market development (D), since it involves selling existing products (WSJ) in new markets (student population).

Storing is the marketing function of holding goods. Which of the following economic utilities does it provide?

Storing is the marketing function of holding goods. Which of the following economic utilities does it provide?

A. Time

B. Place

C. Possession

D. Ownership

E. All of the above


Answer: (A) Time utility is provided by storing, and is thus the correct choice. Goods must be ready when they are needed, wanted, or demanded by the consumer or else the firm loses sales. Place utility (B) is not achieved. Storage of goods at warehouses does not provide the consumer with a readily available product. Since the consumer does not get the possession of the product through the storage function, possession utility (C) is incorrect, as is ownership utility (D). All of the above are not correct, so (E) is incorrect.

The firm can vary its marketing mix through the storing function of physical distribution in which of the following ways?

The firm can vary its marketing mix through the storing function of physical distribution in which of the following ways?

A. Adjusting the time the goods are held

B. Sharing the storing costs

C. Delegating the job to a specialized storing facility

D. All of the above

E. None of the above



Answer: (D) Storing is the marketing function of holding goods. Storing provides time utility for the firm and its customers. If consumption does not match production, storing is necessary. The storing of goods allows producers to achieve economies of scale for their products, helping to keep prices down. (A) is true, but not the correct choice. (B) is also true, but again not the most correct answer. (C) is also true, but not the correct answer. None of the above (E) cannot be true since all of the above are in fact ways to alternate or vary the firm's marketing mix.

Pure competition occurs when a market has

Pure competition occurs when a market has

A. many buyers and sellers

B. informed buyers and sellers

C. homogeneous (similar) products

D. easy entry for new sellers

E. All of the above are true


Answer: (E) Some of the assumptions of pure or perfect competition are that there are many buyers and sellers in the market (A), there is perfect information in the market (B), the product being sold is homogeneous among the many sellers (C), and there is little or no entry or exit barriers (D). Since all these assumptions are true, the correct answer is "all of the above" (E).

If a firm's total revenue decreases when the price of its product is raised from $50 to $55, the demand for this product between these two prices is

If a firm's total revenue decreases when the price of its product is raised from $50 to $55, the demand for this product between these two prices is

A. unitary elastic

B. elastic

C. inelastic

D. static

E. Cannot tell from the information given


Answer: (B) In this question, it states that the firm's total revenues decline when price goes up by $5. That means the quantity demanded must have declined substantially in response to the price increase for total revenues to drop (Price 3 Quantity Demanded = Total Revenues). This is characteristic of elastic demand curves. Hence, the right answer is (B).

Trucks are expensive, but much more flexible than other types of transportation modes. Approximately what percentage of consumer products travel from the producer to the final consumer by truck?

Trucks are expensive, but much more flexible than other types of transportation modes. Approximately what percentage of consumer products travel from the producer to the final consumer by truck?

A. 25%

B. 50%

C. 33%

D. 66%

E. 75%


Answer: (E) Because of the flexibility of trucks, around 75 percent of all physical products transported by the producer to the end user travel by truck. (A), (B), (C), and (D) are simply incorrect choices, forcing the student to think about how the products they purchase are received and stocked by retailers and other merchants. Although somewhat expensive, products could not reach their final destination if it weren't for trucks.

An example of a sales promotion activity aimed at a final consumer or user could be

An example of a sales promotion activity aimed at a final consumer or user could be

A. banners and streamers

B. promotional allowances

C. sales contests

D. bonuses

E. training materials


Answer: (A) Banners and streamers are examples of sales promotions aimed at the final consumer or end user to stimulate trial of the brand or product. (B) is an example of a sales promotion activity aimed at the intermediary and is not correct. (C) also is aimed toward intermediaries, trying to induce the middlemen to pay special attention to a particular product or brand, thus increasing sales. It is incorrect. Bonuses (D) are an internal sales promotion activity that attempts to motivate the company's own sales force. It is incorrect. (E) is incorrect; training materials are used as an internal method of sales promotion aimed at sales people, so that they pay particular attention to a given product or brand.

Selective demand for a company's own brand would most likely occur in which stage of the product life cycle?

Selective demand for a company's own brand would most likely occur in which stage of the product life cycle?

A. Market introduction

B. Market growth

C. Market maturity

D. Sales decline

E. Competition decline


Answer: (B) In this stage, promotion emphasis shifts from trying to create primary demand to that of selective demand. The main objective is to convince consumers that the company's brand is the best choice for purchase. Market introduction (A) would have a promotion emphasis on building primary demand, not selective, and is incorrect. Market maturity (C) utilizes reminder advertising and promotion about the company's brand, and is not the most correct choice. Sales decline (D) utilizes targeted promotions for specific segments, or targets of the brand, and so is incorrect. Competition decline (E) refers to the fact that the competition is leaving the market, so it is incorrect. Competition decline is not one of the phases of the product life cycle.

"Pulling" a product through the distribution channel refers to

"Pulling" a product through the distribution channel refers to

A. using normal promotional efforts in order to help sell the whole marketing mix to possible channel members

B. getting customers to ask intermediaries (or middlemen) for the product

C. promotion to employees

D. using only one promotion "blend" for all situations

E. using highly expensive and aggressive promotions


Answer: (B) Pulling is getting the consumers to ask the intermediaries for products, thus forcing these channel members to request the product from the manufacturers. (A) is the process of "pushing" a product through the distribution channel and is incorrect. (C) is a type of internal marketing done to get the employees involved in selling specific products, so it is incorrect. (D) is incorrect. There is not one correct promotion mix for all selling situations. (E) is generally used when the intermediaries do not want to help, or cooperate, with the manufacturers.

The adoption curve, which shows how products are adopted once introduced into the market place, defines several different groups, and how they accept ideas. The largest percentage of adopters fall into which group(s)?

The adoption curve, which shows how products are adopted once introduced into the market place, defines several different groups, and how they accept ideas. The largest percentage of adopters fall into which group(s)?

A. Innovators

B. Early adopters

C. Early and late majority

D. Late majority

E. Laggards or nonadopters


Answer: (C) Both the early and late majority(s) make up approximately 34% (per group) of the adopting public. Innovators (A) make up around 2½% of the adopting public, so this is incorrect. Early adopters (B) make up around 12% of the adopting public and is not the most correct answer. The late majority (D), as stated before, makes up about 34% of the adopting public and would be one of two groups who represent the largest adoption percentage; however, this is not the most correct choice. The laggards (E) represent anywhere from 5 to 16% of the adopting public, if they adopt at all. This is an incorrect choice.

During the communication process, the same message may be interpreted differently by the various audiences. How the message is translated by the buyer/receiver is called

During the communication process, the same message may be interpreted differently by the various audiences. How the message is translated by the buyer/receiver is called

A. decoding

B. encoding

C. noise

D. source

E. receiver


Answer: (A) Decoding is the process that the receiver uses to translate the seller's message, and is a correct choice. Encoding (B) is how the seller translates ideas and thoughts about selling the product into words and/or symbols and is an incorrect choice. Noise (C) is incorrect. Noise refers to those distractions in the environment that may create an error in the communication process. (D) refers to the sender, or the seller, of the message and is not a correct choice. Finally, (E) is the potential consumer, not how the message is translated, so it too is incorrect.