Marketing and Business Concepts: Relationship Buying, Supply Chain, Pricing, and Market Segmentation

Whenever Ty needs to buy office supplies, he always goes to the same store. There are other stores in the area, but Ty doesn't want to spend time or effort comparing prices or quality. He sticks with the same store every time because he prefers A. customer advocacy. B. relationship buying. C. touchpoints. D. corporate culture.

B. relationship buying.

Trevor owns a small business. Last month, the business's income exceeded its operating expenses by $4,000. To improve the business's efficiency, Trevor decided to use the $4,000 to purchase new computer software. In this situation, Trevor applied __________ in an effective way. A. slack resources B. innovative processes C. competitive aggression D. organizational learning

A. slack resources

The exchange rate between U.S. dollars and Canadian dollars, which is determined by the unimpeded interaction of supply and demand in the foreign exchange market, is a __________ exchange rate. A. cross B. fixed C. pegged D. floating

D. floating

When a local athletic apparel store sells shoes, clothing, and accessories that are designed specifically for runners, it is using __________ segmentation. A. psychographic B. geographic C. demographic D. rate of usage

A. psychographic

A direct benefit of supply chain collaboration is A. lower cost due to higher inventory. B. lower cost due to reduced inventory. C. less flexibility in purchasing decisions. D. an increase in business profits.

B. lower cost due to reduced inventory.

The use of electronically bar-coded price tags on goods has increased the A. efficiency levels of pricing software programs. B. need for businesses to hire additional cashiers. C. transportation costs for customers. D. number of customer self-checkout stations.

D. number of customer self-checkout stations.

Determine whether the following statement is true or false: In a market economy, consumers are not a consideration in setting selling prices for goods and services. A. False; in a market economy, consumers help determine prices. B. True; in a market economy, each industry sets its own prices. C. True; in a market economy, product prices are set by adding predetermined markups. D. False; in a market economy, marketers generally ask for consumer feedback on prices.

A. False; in a market economy, consumers help determine prices.

One way that some businesses obtain new products to add to their product line is by A. implementation. B. acquisition. C. consolidation. D. syndication.

B. acquisition.

What type of thinking involves approaching an issue from new illogical directions and using illogical methods to develop new ideas? A. Programmed B. Morphological C. Forced D. Lateral

D. Lateral

A health-food company believes in customer satisfaction and cares about providing customers with healthy, high-quality food. These beliefs are known as A. brand identity. B. brand personality. C. distributor brands. D. brand values.

D. brand values.

Timeliness is an advantage of which of the following types of promotional media: A. Magazines B. Newspapers C. Directories D. Billboards

B. Newspapers

A clothing manufacturer in the United States allows a company in Argentina to use its name and logo in exchange for a fee and royalties. This is an example of A. franchising. B. a joint venture. C. licensing. D. exporting.

C. licensing.

A government establishes an organization that monitors and ensures that businesses are complying with advertising laws. This organization is an example of a A. legislative body. B. lobbying group. C. regulatory agency. D. watchdog corporation.

C. regulatory agency.

Electronic sensors, closed-circuit television, locked display cases, and security guards are security devices used to help businesses prevent A. shoplifting. B. malpractice. C. burglary. D. fraud.

A. shoplifting.

One advantage of using certain software programs in the process of determining price is that these programs allow businesses to find out what effect different prices will have on the A. target market. B. bottom line. C. competition. D. operating cost.

B. bottom line.

Franklin Juice Company produced and aired television commercials that stated that drinking its new beverage daily would prevent the common cold and headaches. What federal agency would charge the company for providing false, misleading, and deceptive advertising? A. Consumer Affairs Department B. Food and Drug Administration C. Federal Trade Commission D. Consumer Product Safety Commission

C. Federal Trade Commission

Your new advertising client is describing what s/he wants in a print ad. S/He keeps emphasizing that "a picture is worth a thousand words." Based on this statement, what element of the print ad should you focus on? A. Identification B. Copy C. Headline D. Illustration

D. Illustration

To be effective in developing relationships with customers, the service that salespeople provide must A. include customers' employees. B. save money for customers. C. be the same for all customers. D. meet customers' needs.

D. meet customers' needs.

What is a benefit to the salesperson of building a clientele? A. Obtaining referrals from loyal customers B. Reducing selling costs C. Supporting the company image D. Securing customer acceptance of higher prices

A. Obtaining referrals from loyal customers

Union and management officials are meeting next week to determine the terms and conditions that will be provided to employees. This process is known as A. striking. B. collective bargaining. C. picketing. D. corporate campaigning.

B. collective bargaining.

Which of the following is an example of an employee-assistance program: A. Training on the use of dangerous power equipment B. Compensation C. Career and education planning D. Corrective action

C. Career and education planning

Which probability design allows marketers to study distinct groups within the target population? A. Simple random sampling B. Stratified random sampling C. Systematic random sampling D. Cluster sampling

B. Stratified random sampling

The price function often influences the place function by determining A. how the product is advertised. B. why the product is shipped. C. where the product is sold. D. when the product is made.

C. where the product is sold.

What is one reason a supermarket might implement slotting allowances to distribute products? A. To decrease the number of members in the distribution channel B. To reduce conflict among distribution channel members C. To increase the number of brands that the store carries D. To lower the risks associated with stocking new products

D. To lower the risks associated with stocking new products

Which of the following is a general benefit profit provides: A. Better wages B. More products C. Higher prices D. Better supplies

A. Better wages

Which of the following is true of working capital management: A. It determines which projects the business will invest in. B. It concerns long-term decisions. C. It decides how investments will be financed. D. It deals with accounts payable and receivable.

D. It deals with accounts payable and receivable.

How can businesses use computerized databases to sort and organize information about customers' purchases, brand preferences, and dollar amounts spent? A. To maintain sales strategies B. To prepare financial reports C. To develop inventory control plans D. To customize their marketing efforts

D. To customize their marketing efforts

The method for selecting sampling units out of the target population is the A. sample design. B. stratum. C. sample size. D. skip interval.

A. sample design.

What is the overall reason that marketing strategies are designed and implemented? A. Achieving planned goals B. Improving management techniques C. Changing the image of the business D. Increasing business profits immediately

A. Achieving planned goals

Which of the following is an example of a possible opportunity that a business might identify as a result of conducting a situational analysis: A. Customers changing their habits B. Increases in operating expenses C. Suppliers raising their prices D. Declines in economic conditions

A. Customers changing their habits

Why are many businesses looking for ways to reuse products by turning them into new products? A. To save money on the process of product development B. To solve the ethical problem of planned obsolescence C. To encourage customers to buy reconditioned products D. To position products as being technologically advanced

A. To save money on the process of product development

A characteristic of product bundling is that the products that are bundled are sold A. only at certain times of the year. B. for one all-inclusive price. C. at heavily discounted rates. D. as loss leaders to loyal customers.

B. for one all-inclusive price.

An independent organization using part of its website to post letters from satisfied grocery shoppers from Publix groceries is an example of which element of the promotional mix? A. Personal selling B. Advertising C. Publicity D. Sales promotion

C. Publicity

Which of the following is an example of products being sold indirectly to consumers: A. Students selling candy to relatives B. Stores renting video games to customers C. Friends selling jewelry to friends D. Neighbors borrowing items from neighbors

B. Stores renting video games to customers

Which of the following kinds of product information would you use to help a customer who is comparing designer sweaters: A. Materials and content B. Pricing information C. Production process D. Product finish

A. Materials and content

A local hardware store purchased a large shipment of snow shovels in November in order to prepare for winter weather. The hardware store is helping to create __________ utility. A. form B. place C. time D. possession

C. time

Behavior that is characterized by a willingness to ignore the rights of others and to exploit them in order to achieve personal goals is __________ behavior. A. offensive B. passive C. assertive D. aggressive

D. aggressive

Being a good listener is an example of what type of behavior that builds positive working relationships? A. Being cooperative B. Carrying your own weight C. Getting to know others on your work team D. Having a good attitude

A. Being cooperative

A reason that many companies update or alter existing products is to A. be able to plan production quantities. B. make them competitive with similar products. C. create new products to put on the market. D. use a familiar production process.

B. make them competitive with similar products.

One way that advances in technology are impacting the product/service management function is by making it possible for businesses to A. improve existing products. B. eliminate human errors. C. simplify production systems. D. control customer preferences.

A. improve existing products.

What strategy can make or break a business's product mix? A. Positioning B. Contracting C. Altering D. Expanding

A. Positioning

What communication channels is a corporation's public-relations department most likely to use to maintain positive relationships with shareholders? A. News conferences, consumer blogs, and employee manuals B. Press releases, online social networks, and print advertisements C. Newsletters, annual reports, and the company's website D. Policy manuals, commercials, and sponsorships

C. Newsletters, annual reports, and the company's website

Legal avenues that manufacturers take to gain more control in product distribution channels to consumers include all of the following except A. establishing one or more vertical marketing systems. B. building strong consumer brand loyalty. C. arranging alternative retailers. D. refusing to sell to uncooperative retailers.

B. building strong consumer brand loyalty.

What type of information concerning policies and procedures do employees often extract from an internal business report? A. Industry research data B. Customer profiles C. New personnel regulations D. Former local competitors

C. New personnel regulations

A customer asks a salesperson about a specific advertisement in last Sunday's newspaper. Which of the following would help the salesperson to assist the customer: A. Knowledge of the customer's preferences B. Knowledge of the store's promotional budget C. Knowledge of the store's policies D. Knowledge of the products being promoted

D. Knowledge of the products being promoted

For economists in general, an indicator of a strong and growing economy is a rise in A. saving. B. inflation. C. spending. D. prices.

C. spending

What is an example of an ethical issue that may make it difficult for marketers to gather data? A. Identifying the sponsor of the research project B. Ensuring the anonymity of all participants C. Explaining research procedures in detail D. Selling consumer information without consent

D. Selling consumer information without consent

One of the functions of a marketing research brief is to A. analyze the evidence. B. process the data. C. state a conclusion. D. present an overview.

D. present an overview

Which of the following characteristics is included in demographic segmentation: A. Personality B. Lifestyle C. Location D. Income

D. Income

What is one way that many large businesses decentralize their purchasing operations? A. Warehousing items until needed B. Organizing departments into one C. Dividing the country into districts D. Requisitioning sufficient quantities

C. Dividing the country into districts

Which of the following does not represent a guideline for proper business dress: A. Articles of clothing should be proportionate in size to one another. B. Clothing should be fashionable, not faddish. C. Clothing should present a harmonious appearance. D. It is best to wear "loud" colors in clothing.

D. It is best to wear "loud" colors in clothing.

A primary reason for some businesses to bundle products is to A. increase sales quotas. B. encourage long-term use. C. control expenses. D. obtain referrals.

B. encourage long-term use.

Selling helps customers to determine their needs by providing an opportunity for A. added utility. B. two-way communication. C. more competition. D. increased employment.

B. two-way communication.

A salesperson who explains to a customer how a certain product offers comfort as well as safety is describing __________ benefits. A. unique B. hidden C. obvious D. exclusive

C. obvious

Josh is a small business owner who hires a lawyer to represent him in court. In this situation, Josh is the A. representative. B. agent. C. judge. D. principal.

D. principal

One reason that the balance on your bank statement would be higher than your checkbook register would be that A. you've written checks after the covered period. B. a deposit has not been credited to your account yet. C. an automated payment was deducted from your account. D. you did not record a bank withdrawal.

A. you've written checks after the covered period.

What is one way to monitor the buzz your company receives? A. Update your company's website to make it easier to use and find. B. Have social media conversations with interested customers about your products. C. Answer customer complaints promptly on social media. D. Use website analytics to see which social media sites customers use to find your website.

D. Use website analytics to see which social media sites customers use to find your website.

Over the course of the semester, Rita gets the following scores on her marketing exams: 85, 92, 96, 92, 88, 95, and 100. What is the mode in this set of test scores? A. 85 B. 92 C. 93 D. 100

B. 92

If you used a query in a database, you would most likely want to A. view your requested data in one datasheet. B. close the database. C. create a new row in a table. D. input new information into the database.

A. view your requested data in one datasheet.

One of smaller online retailers' biggest concerns about automated pricing systems is that these systems could cause A. a demand surplus. B. inflation of the retail price. C. the retailer's price to be undercut. D. higher marketing prices.

C. the retailer's price to be undercut.

During the decline stage, a company may choose to discontinue a product and sell off the remaining inventory in a process known as A. liquidation. B. a super sale. C. penetration pricing. D. foreclosure.

A. liquidation.

A snack food manufacturer provides a grocery store with a computer-developed diagram that shows how all of the food products should be displayed in the store. The manufacturer is providing a A. product placement. B. product diagram. C. planogram. D. prototype.

C. planogram.

A great way to demonstrate the viability of a good or service is to show that it worked in a real-world application. Which of the following public relations tactics would be the best way to do this? A. Case studies B. White papers C. Newsletters D. Press releases

A. Case studies

88. Which of the following is an important component of a business's press kit: (2017-MKT-ICDC)

A. Biographies of key company figures

B. Promotional messages

C. Interviews

D. Customer testimonials

A. Biographies of key company figures

33. One way that many businesses use technology in accounting is to process (1028-MKT) A. product warranties. B. insurance policies. C. credit applications. D. risk factors.

C. credit applications.

44. Descriptive statistics are useful to market researchers because they (2018-MKT-ICDC) A. help to summarize data in a manageable way. B. help researchers draw conclusions about a population. C. prevent researchers from losing detail. D. eliminate bias in research surveys.

A. help to summarize data in a manageable way.

67. After an employee collects the necessary facts, what is the next step that an employee should take to solve a problem? (1045-MKT) A. Analyze the information B. Define the problem C. Act on assumptions D. Make a decision

A. Analyze the information

74. At what point in the new-product development process does a product's life cycle begin? (1150-MKT) A. Idea generation B. Commercialization C. Test marketing D. Product development

B. Commercialization

75. Chloe purchased some wireless headphones with Bluetooth capability. Unfortunately, the headphones failed to pair with her Bluetooth-enabled smartphone. Chloe has the right to return the headphones because they carry a(n) __________ warranty. (2018-MKT-ICDC) A. full B. express C. implied D. limited

C. implied

76. One ethical issue that a business must address when it decides to discontinue a product is if the business should (1062.MKT) A. advise the public to purchase a similar product offered by a competitor. B. develop an improved version of the product. C. reduce the product's price before it is taken off the market. D. provide replacement parts for the product.

D. provide replacement parts for the product.

81. Which of the following is an example of a customer touchpoint that is important during the purchase stage: (2017-MKT-ICDC) A. A charity sponsorship B. Product reviews C. Customer service teams D. A retail store

D. A retail store

60. Holly, Cary, and Rick are working a project together, even though they are geographically far away from

each other. They use the Internet to work on documents together, share files, and communicate quickly

and easily. What type of software are Holly, Cary, and Rick using?

A. Spyware

C. Groupware

B. Shareware

D. Freeware

C. Groupware

68. Which of the following individuals chooses goods for resale, surveys consumer trends, and rates past

performance of products and vendors:

A. Retail buyer

C. Receiving manager

B. Durable goods producer

D. Industry researcher

A. Retail buyer

64. One way that the use of technology benefits the operations process is by

A. automating the work force.

C. developing a robotics plan.

B. computerizing the purchasing function.

D. organizing a conveyor system.

B. computerizing the purchasing function.

88. When a company's promotional activities focus on pointing out differences between its well-established

product and competing products, the product is in the __________ stage of its life cycle.

A. growth

C. declining

B. maturity

D. introductory

B. Maturity

Tara helps distribute her company's products to customers by making sure each product is in the best location for customer access and purchase. This is an example of how Tara coordinates channel management with which component of the marketing mix? A. Product B. Price C. Promotion D. Place

D. Place

Which of the following is an ineffective form of nonverbal communication to use while giving an oral presentation: A. Moving around the stage B. Facial expressions C. Swaying back and forth D. Hand gestures

C. Swaying back and forth

Which of the following investments uses a manager who is responsible for deciding which investments to pursue: A. Mutual fund B. Real estate C. Money market account D. Bond

A. Mutual fund

Amy started an online clothing store that sells custom-printed shirts, pants, hats, and other accessories. She invested $2,000 of her own money and borrowed another $3,000 from her parents before making a sale. According to the accounting equation, how much money does Amy have in assets? A. $6,000 B. $1,000 C. $5,000 D. $3,000

C. $5,000

Halle alters a few numbers on her spreadsheet to impress a potential client. No one notices, so over the years, she adjusts the figures more frequently and in larger amounts. Eventually, a coworker notices the discrepancies and reports the fraud to upper management, and Halle is fired. In this situation, Halle's decision-making was impacted by A. self-interest. B. rationalization. C. playing the devil's advocate. D. incrementalism.

D. incrementalism.

A clothing store's management team notices that interest around their brand was lower than expected last quarter. To learn why, the store hired an independent researcher to create a qualitative survey that will allow customers to share their opinions of the store and its products. The survey was emailed to its existing customers and is included at the bottom of each receipt. This is an example of __________ research. A. predictive B. descriptive C. causal D. exploratory

D. exploratory

A research team is studying a company's past sales invoices, expense reports, and other company records during a marketing research project. The research team is looking at A. primary data. B. secondary data. C. units of analysis. D. relevant variables.

B. secondary data.

When developing the place element of the marketing mix, marketers consider which of the following factors: A. How the product might affect the business's image B. How to bring in the revenue that their business needs C. The manufacturer from which to buy the product D. The most appropriate medium for an advertisement

C. The manufacturer from which to buy the product

Juan's Waffle Emporium sells state-of-the-art pancake griddles and waffle irons. The total cost to create each waffle iron is $12, and Juan then sells each waffle iron for $30 to create an $18 profit. Juan's Waffle Emporium is using what type of pricing method? A. Cost-based pricing B. Break-even point C. Price-based costing D. Economies of scale

A. Cost-based pricing

Marketing/Product communications and media trainer are positions within which specific marketing career? A. Product/Brand management B. Customer service C. Public relations D. Digital marketing

A. Product/Brand management

The longest-lasting stage of the product life cycle is usually A. maturity. B. introduction. C. decline. D. growth.

A. maturity.

Which of the following is a reason why a business may choose an expansion product-mix strategy: A. To keep up with changing consumer preferences B. To differentiate from the competition C. To improve products for social good D. To satisfy customers' desire for variety

D. To satisfy customers' desire for variety

Which form of word-of-mouth marketing involves developing volunteers or advocates and encouraging them to spread the word about your product or organization? A. Evangelist marketing B. Influencer marketing C. Product seeding D. Referral programs

A. Evangelist marketing

Which of the following is an example of pull marketing: A. Search engine optimization B. Targeted email marketing C. TV advertising D. Point-of-sale marketing

A. Search engine optimization

Which of the following is an example of a producer in a channel of distribution: A. Mercedes-Benz Automobile Co. B. Local car dealership C. Hertz Car Rental Co. D. Car dealership customers

A. Mercedes-Benz Automobile Co.

Employees who show initiative on the job often receive A. criticism from their boss. B. less complex tasks. C. more challenging work. D. personal motivation.

C. more challenging work.

The marketers at Titan Trucking want to know how many customers have rented a truck for three or more days. Which type of marketing-research data will they likely use? A. Primary quantitative B. Secondary external C. Primary qualitative D. Secondary internal

D. Secondary internal

In which of the following circumstances would a company decide to use a sample when performing marketing research: A. The market in which the business is opening includes 1,200 people. B. The target population is males ages 18-34 across the nation. C. The results of the study have serious consequences. D. The target population is French professors at one university.

B. The target population is males ages 18-34 across the nation.

Which of the following forms of segmentation involves focusing on customers' lifestyles and personalities: A. Behavioral segmentation B. Psychographic segmentation C. Geographic segmentation D. Demographic segmentation

B. Psychographic segmentation

Which of the following is a key subject that should be covered by a situation analysis: A. Financial plans B. Marketing objectives C. Product strategy D. Collaborators

D. Collaborators

Jamil is creating a website for his startup business. What service should Jamil use to store files, publish online, and be visible to Internet users? A. Website design B. Personal branding C. Web hosting D. Domain purchasing

C. Web hosting

Which of the following statements best describes the relationship of data warehouses and data marts: A. A data mart is more helpful than a data warehouse because a data mart can utilize information from any department. B. A data mart contains data from multiple subject areas and is a more complex form of a data warehouse. C. A data mart takes more time to process than a data warehouse because a dart mart includes a larger amount of data. D. A data mart contains data on a single subject and is a simpler form of a data warehouse.

D. A data mart contains data on a single subject and is a simpler form of a data warehouse.

Which of the following is a potential drawback of using brainstorming to generate new ideas in business: A. Unrealistic suggestions B. Fresh perspectives C. Unequal participation D. Efficient use of time

C. Unequal participation

Rachel recently purchased a new laptop computer. The salesperson explained to her that the manufacturer would cover repairs or replacements for any hardware issues within one year of her purchase. This is an example of a(n) __________ warranty. A. full B. limited C. implied D. understood

B. limited

RJ's Ice Cream prides itself on its variety of unique ice cream flavors. The brand advertises its "100 flavors" on all of its ice cream cartons, which come in various sizes to meet the needs of every customer. Based on this information, you could say that RJ's Ice Cream has a __________ product mix. A. consistent B. shallow C. deep D. broad

C. deep