Marketing & Supply Chain Gala 2024

Quiz Competition Booklet

Questions with answers

1) Individuals and households that buy or acquire goods and services for personal consumption make up the
________.
A) consumer market
B) market offering
C) market mix
Answer: A

2) A person's buying choices are influenced by four major psychological factors. Which of the following is
NOT one of these factors?
A) motivation
B) perception
C) association
Answer: C

3) When consumers are highly involved with the purchase of an expensive product and they perceive
significant differences among brands, they most likely will exhibit ________.
A) consumer capitalism
B) complex buying behavior
C) consumer ethnocentrism
Answer: B

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

A) customer demographics
B) population shifts
C) marketing intermediaries
Answer: C

5) Rather than assuming that strategic options are bounded by the current environment, firms adopting a(n)
________ to the marketing environment develop strategies to change the environment.
A) environmental stance
B) proactive stance
C) reactive stance
Answer: B

6) Marketers describe the way a consumer processes information to arrive at brand choices as ________.
A) alternative evaluation
B) information search
C) impulse buying
Answer: A

7) Each culture contains smaller ________, or groups of people with shared value systems based on
common life experiences and situations.
A) cultural universals
B) reference groups
C) subcultures
Answer: C

8) When consumers are highly involved with an expensive, infrequent, or risky purchase but see little
difference among brands, they most likely will exhibit ________.
A) habitual buying behavior
B) complex buying behavior
C) dissonance-reducing buying behavior
Answer: C

9) The buying decision process starts with ________, in which the buyer spots a problem.
A) need recognition
B) information search
C) impulse purchases
Answer: A

10) The interrelated departments within a company that influence marketing decisions form the ________
environment.
A) cultural
B) economic
C) internal
Answer: C

11) Companies that take a proactive stance toward the marketing environment are most likely to ________.
A) develop strategies to change the environment in their favor
B) passively accept the marketing environment
C) resist organizational change
Answer: A

12) Which of the following terms refers to a specific mix of human traits that may be attributed to a
particular brand?
A) brand perception
B) brand identity
C) brand personality
Answer: C

13) Marketers describe the way a consumer processes information to arrive at brand choices as ________.
A) alternative evaluation
B) information search
C) impulse buying
Answer: A

14) Family is one of the ________ factors that influence consumer behavior.
A) regional
B) social
C) personal
Answer: B

15) Maslow's theory is that ________ can be arranged in a hierarchy.

A) marketing stimuli
B) perceptions
C) human needs
Answer: C

16) Which of the following consumer buying behaviors is related to conditions of low-consumer
involvement and little significant brand difference?
A) complex buying behavior
B) dissonance-reducing buying behavior
C) habitual buying behavior
Answer: C
17) ________ provide the resources needed by a company to produce its goods and services.
A) Retailers
B) Marketing services agencies
C) Suppliers
Answer: C

18) Katrina Mendoza is a senior manager in a manufacturing firm that hires lobbyists to influence legislation
that affects the manufacturing industry. Katrina's firm takes a(n) ________ stance toward the marketing
environment.
A) reactive
B) proactive
C) adversarial
Answer: B

19) Which of the following is most likely influenced by marketers?

A) population shifts
B) core cultural values
C) media
Answer: C

20) When customers have low involvement in a purchase but perceive significant brand differences, they
will most likely engage in ________.
A) complex buying behavior
B) dissonance-reducing buying behavior
C) variety-seeking buying behavior
Answer: C

21) Companies facing the challenge of setting prices for the first time can choose between two broad
strategies: market-penetration pricing and ________ pricing.
A) comparative
B) competitive
C) market-skimming
Answer: C

22) Which of the following factors would most likely lead to a company initiating a price cut?
A) over-demand
B) weakened economy
C) poor competition
Answer: B

23) Which of the following product mix pricing strategies involves pricing products that can only be used
with the main product?
A) by-product pricing
B) product bundle pricing
C) captive product pricing
Answer: C

24) Which of the following is a price adjustment strategy?

A) product bundle pricing
B) by-product pricing
C) discount and allowance pricing
Answer: C

25) A quantity discount is a price reduction for buyers who ________.

A) buy merchandise out of season
B) buy merchandise in bulk
C) pay their bills on time
Answer: B

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

A) It leads to 'deal-prone' customers who buy products only during sales.
B) It fortifies the brand's image in the eyes of customers if relied upon extensively.
C) It simplifies shopping for customers if used simultaneously by multiple stores.
Answer: A

27) A market-skimming pricing strategy should NOT be used for a new product when ________.
A) the product's quality and image support its higher price
B) enough buyers want the products at that price
C) competitors can undercut prices easily
Answer: C

28) Which of the following product mix pricing strategies involves setting prices across an entire product
range based on cost differences between the products, customer evaluations of different features, and
competitors' prices?
A) by-product pricing
B) product bundle pricing
C) product line pricing
Answer: C

29) Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the
price of their main product more competitive.
A) product bundle
B) optional product
C) by-product
Answer: C

30) Which of the following price adjustment strategies involves reducing prices to reward customer
responses such as volume purchases, paying early, or participating in sales-support programs?
A) product bundle pricing
B) captive product pricing
C) discount and allowance pricing
Answer: C

31) A seller offers a ________ to trade-channel members who perform certain functions, such as selling,
storing, and record keeping.
A) functional discount
B) storage allowance
C) cash discount
Answer: A

32) Low-interest financing and longer warranties are both examples of ________ pricing.
A) segmented
B) promotional
C) product bundling
Answer: B

33) When a company sets a high price for a new product with the intention of reducing the price in the
future, it is using the ________ pricing strategy.
A) market-skimming
B) cost-plus
C) market-segmentation
Answer: A

34) Which of the following product mix pricing strategies involves pricing additional or accessory products
sold along with the main product?
A) inclusive product pricing
B) exclusive product pricing
C) optional-product pricing
Answer: C

35) Which of the following product mix pricing strategies involves pricing multiple products to be sold
together?
A) product line pricing
B) product bundle pricing
C) optional product pricing
Answer: B

36) A(n) ________ is a straight reduction in price on purchases during a stated period of time or of larger
quantities.
A) allowance
B) free sample
C) discount
Answer: C

37) A(n) ________ refers to promotional money paid by manufacturers to retailers in return for an
agreement to feature the manufacturer's products in some way.
A) allowance
B) sample
C) discount
Answer: A

38) What type of pricing is being used when a company temporarily prices its product below the list price or
even below cost to create buying excitement and urgency?
A) segmented pricing
B) international pricing
C) promotional pricing
Answer: C

39) Which of the following involves adjusting prices to account for the physical location of customers?
A) location-based pricing
B) geographical pricing
C) domestic pricing
Answer: B

40) The Internet offers ________, where the price can easily be adjusted to meet changes in demand.
A) captive pricing
B) dynamic pricing
C) basing-point pricing
Answer: B

41) A company's total marketing communications mix consists of a special blend of advertising, sales
promotion, public relations, personal selling, and direct-marketing tools that the company uses to
communicate customer value and build customer relationships. Which of the following terms best describes
this set of communications tools?
A) the product mix
B) product line filling
C) the promotion mix
Answer: C

42) The use of short-term incentives to encourage the purchase or sale of a product or service is called
________.
A) direct marketing
B) sales promotion
C) personal selling
Answer: B

43) Which of the following is one of the four major communication functions?
A) coordination
B) distribution
C) response
Answer: C

44) In the communication process, an actual HP printer/fax machine advertisement would be considered
________.
A) encoding
B) decoding
C) the message
Answer: C

45) An appeal that attempts to stir up either negative or positive sentiments that can motivate purchase is
called a(n) ________ appeal.
A) rational
B) structural
C) emotional
Answer: C

46) The AIDA model identifies the characteristics of an effective ________.

A) advertising budget
B) channel of communication
C) marketing message
Answer: C

47) Which of the following terms best describes the channels through which two or more people
communicate directly with each other, including face-to-face, mail, e-mail, texting, or an Internet chat?
A) shared communication channel
B) earned communication channel
C) personal communication channel
Answer: C

48) Which of the following is one of the five major promotion tools?
A) market penetration
B) strategic positioning
C) direct marketing
Answer: C

49) Today's consumers do not need to rely on marketer-supplied information about products and services
because they can use ________ to seek out a wealth of information.
A) push strategies
B) direct marketing
C) the Internet
Answer: C

50) ________ refers to the process of putting thought into symbolic form.
A) Sending
B) Encoding
C) Decoding
Answer: B

51) A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from
reading the advertisement and is not able to grasp its key points. In the context of the communication
process, this unplanned static or distortion is called ________.
A) noise
B) encoding
C) feedback
Answer: A

52) An appeal that attempts to stir up either negative or positive sentiments that can motivate purchase is
called a(n) ________ appeal.
A) rational
B) structural
C) emotional
Answer: C

53) Communication through a telephone call is considered a part of a(n) ________ communication channel.
A) online
B) nonverbal
C) personal
Answer: C

54) Nonpersonal communication channels include major media, ________, and events.
A) sales calls
B) atmospheres
C) buzz marketing
Answer: C

55) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified
sponsor is called ________.
A) sales promotion
B) advertising
C) direct marketing
Answer: B

56) Today, several companies are adopting the concept of ________, which carefully combines and
coordinates the company's many communication channels to deliver a clear, consistent, and compelling
message about the organization and its brands.
A) integrated marketing communications
B) pull strategy
C) vertical diversification
Answer: A

57) Which of the following terms best represents the communication channel that a company uses to move
its advertising messages from sender to receiver?
A) decoder
B) media
C) encoder
Answer: B

58) In the communication process, the reaction of the receiver after being exposed to a message is called the
________.
A) response
B) disturbance
C) noise
Answer: A

59) A message showing a product's quality, economy, value, or performance is an example of a(n) ________
appeal.
A) structural
B) rational
C) emotional
Answer: B

60) ________ involves cultivating opinion leaders and getting them to spread information about a product or
a service to others in their communities.
A) Sales promotion
B) Indirect marketing
C) Buzz marketing
Answer: C

61) While using the ________ method for setting an advertising budget, a company starts with total
revenues, deducts operating expenses and capital outlays, and then devotes some portion of the remaining
funds to advertising.
A) integrated
B) moving-average
C) affordable
Answer: C

62) A ________ is some combination of products, services, information, or experiences provided to

consumers to satisfy a need or want.
A) market offering
B) value proposition
C) brand positioning
Answer: A

63) Which of the following marketing management orientations focuses primarily on improving efficiencies
along the supply chain?
A) production concept
B) product concept
C) selling concept
Answer: A

64) Which of the following marketing strategies should marketing managers focus on to manage detailed
information about individual customers and carefully manage customer touchpoints to maximize customer
loyalty?
A) customer divestment
B) customer-managed relationships
C) customer relationship management
Answer: C

65) Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin
feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________.
A) share of customer
B) customer satisfaction
C) customer equity
Answer: B

66) Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly
increasing number of patrons. This exemplifies ________.
A) product differentiation
B) product development
C) market penetration
Answer: C

67) A women's apparel manufacturer in California recently acquired a Houston-based company that
manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) diversification
Answer: C

68) In the marketing mix, design, packaging, services, and variety can be categorized under ________.
A) product
B) price
C) promotion
Answer: A

69) When marketers set low expectations for a market offering, they run the risk of ________.
A) disappointing loyal customers
B) having to use an outside-in rather than an inside-out perspective
C) failing to attract enough customers
Answer: C

70) A(n) ________ is the set of actual and potential buyers of a product or service.
A) market
B) control group
C) subsidiary
Answer: A

71) Selecting which segments of a population to serve is called ________.

A) market segmentation
B) positioning
C) target marketing
Answer: C

72) Which of the following marketing orientations holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions better than
competitors do?
A) the product concept
B) the production concept
C) the marketing concept
Answer: C

73) Which of the following strategies would a company most likely use to increase customer satisfaction?
A) decreasing the variety of offered services
B) divesting
C) lowering prices
Answer: C

74) Which of the following is true with regard to the product/expansion grid?
A) It classifies SBUs into four distinct categories.
B) It is a useful device for identifying growth opportunities.
C) It helps companies analyze their internal strengths and weaknesses.
Answer: B

75) Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its
highly popular televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark
is most likely following a ________ strategy.
A) local marketing
B) market development
C) diversification
Answer: B

76) The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to
sell the firm's current products. This is an example of ________.
A) market penetration
B) product development
C) market development
Answer: C

77) ________ is the act of obtaining a desired object from someone by offering something in return.
A) Valuation
B) Exchange
C) Market offering
Answer: B

78) The societal marketing concept seeks to establish a balance between ________.
A) customer lifetime value and customer equity
B) an inside-out perspective and an outside-in perspective
C) consumer short-run wants and consumer long-run welfare
Answer: C

79) The set of marketing tools a firm uses to implement its marketing strategy is called the ________.
A) promotion mix
B) product mix
C) marketing mix
Answer: C

80) Building and maintaining profitable customer relationships by delivering superior customer value and
satisfaction is called ________.
A) customer lifetime value
B) customer-perceived value
C) customer relationship management
Answer: C

81) The marketing world is most likely embracing ________ because consumers wield greater power now
with many platforms for airing and sharing their brand views with other consumers.
A) partner relationship management
B) supply chain management
C) customer-managed relationships
Answer: C
82) Making more sales to current customers without changing a firm's products is known as ________.
A) market segmentation
B) market penetration
C) product diversification
Answer: B

83) Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture
exporting business. This is an example of ________.
A) niche marketing
B) local marketing
C) diversification
Answer: C

84) The final step in the marketing process is ________.

A) capturing value from customers
B) creating customer delight
C) creating customer lifetime value
Answer: A

85) Consumer research, product development, communication, distribution, pricing, and service are all core
________ activities.
A) positioning
B) marketing
Answer: B

86) Which of the following refers to a set of benefits that a company promises to deliver to customers to
satisfy their needs?
A) customer lock-in
B) a cartel
C) value proposition

Answer: C

87) The primary key to delivering customer satisfaction is to match product performance with ________.
A) the performance of competitive products
B) competitive prices
C) customer expectations

88) Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they
contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook
the ________ philosophy.
A) marketing concept
B) product concept
C) societal marketing concept
Answer: C

89) Which of the following marketing management concepts is most likely to lead to marketing myopia?

A) customer-driven marketing concept

B) customer-driving marketing concept
C) product concept
Answer: C

90) Each department in a company that carries out value-creating activities can be thought of as a link in the
company's ________.
A) channel of intermediaries
B) external value stream
C) internal value chain
Answer: C

91) Companies facing the challenge of setting prices for the first time can choose between two broad
strategies: market-penetration pricing and ________ pricing.
A) comparative
B) competitive
C) market-skimming
Answer: C

92) A market-penetration pricing policy should LEAST likely be used for a new product when ________.
A) the market is highly price sensitive
B) production and distribution costs fall as sales volume increases
C) the product's quality and image support a high price
Answer: C

93) Which of the following product mix pricing strategies involves setting prices across an entire product
range based on cost differences between the products, customer evaluations of different features, and
competitors' prices?
A) by-product pricing
B) product line pricing
C) optional product pricing
Answer: B

94) Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that
allow the customer to visit the salon multiple times in a year. This is an example of a(n) ________.
A) discount
B) promotional allowance
Answer: A

95) Which of the following is true of price changes?

A) A drop in price can adversely affect how consumers view the brand.
B) Changes in price do not affect a brand's image.
C) Customer reaction to price changes is not as important as competitor reaction.
Answer: A

96) A market-skimming pricing strategy should NOT be used for a new product when ________.
A) the product's quality and image support its higher price
B) competitors can undercut prices easily
C) competitors are unable to enter the market
Answer: B

97) Which of the following is true of market-penetration pricing?

A) It should be used when the product's quality and image support a high price.
B) It involves setting a high price for a new product to appeal to the elite in society.
C) It results in drawing in large numbers of buyers quickly, winning a large market share.
D) It is best used in conjunction with a market-skimming pricing strategy.
E) It results in the company making fewer and less profitable sales.
Answer: C

98) Tone Zone plans to introduce four mp3 player models over the next year. These models range from
basic players at $99 per unit, to more sophisticated players at $399 per unit. The more features a model has,
the more expensive it is. What pricing strategy is Tone Zone using for its range of mp3 players?
A) product line pricing
B) product bundle pricing
C) captive product pricing
D) by-product pricing
E) optional product pricing
Answer: A

99) A(n) ________ is a straight reduction in price on purchases during a stated period of time or of larger
quantities.
A) allowance
B) free sample
C) discount
D) tax credit
E) quota
Answer: C

100) Competitors are most likely to react to a price change when ________.
A) a large number of competitors are involved
B) the product is uniform
C) the buyers are not well informed about product features
D) buyers are not well informed about price differences
E) the products are not uniform
Answer: B

101) Which of the following is one of the five major promotion tools?
A) market penetration
B) strategic positioning
C) product line filling
D) market diversification
E) direct marketing
Answer: E

102) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified
sponsor is called ________.
A) sales promotion
B) advertising
C) direct marketing
D) personal selling
E) public relations
Answer: B

103) Which of the following promotion categories is most likely to include the use of displays, discounts,
coupons, and demonstrations?
A) sales promotion
B) direct marketing
C) horizontal diversification
D) public relations
E) advertising
Answer: A

104) Which major promotion category uses catalogs, telephone marketing, kiosks, and the Internet?
A) sales promotion
B) direct marketing
C) horizontal diversification
D) public relations
E) advertising
Answer: B

105) Today's consumers do not need to rely on marketer-supplied information about products and services
because they can use ________ to seek out a wealth of information.
A) push strategies
B) direct marketing
C) the Internet
D) personal selling
E) public relations
Answer: C

106) Today, several companies are adopting the concept of ________, which carefully combines and
coordinates the company's many communication channels to deliver a clear, consistent, and compelling
message about the organization and its brands.
A) integrated marketing communications
B) pull strategy
C) vertical diversification
D) nonpersonal communication channels
E) buzz marketing
Answer: A

107) In the communication process, the reaction of the receiver after being exposed to a message is called
the ________.
A) response
B) disturbance
C) noise
D) code
E) distortion
Answer: A

108) A company's total marketing communications mix consists of a special blend of advertising, sales
promotion, public relations, personal selling, and direct-marketing tools that the company uses to
communicate customer value and build customer relationships. Which of the following terms best describes
this set of communications tools?
A) the product mix
B) product line filling
C) the promotion mix
D) the price mix
E) horizontal diversification
Answer: C

109) The use of short-term incentives to encourage the purchase or sale of a product or service is called
________.
A) direct marketing
B) sales promotion
C) personal selling
D) public relations
E) publicity
Answer: B

110) Which of the following promotion tools involves building up a good corporate image and handling
unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct marketing
D) public relations
E) advertising
Answer: D

111) ________ includes sales presentations, trade shows, and incentive programs.
A) Direct marketing
B) Sales promotion
C) Personal selling
D) Public relations
E) Advertising
Answer: C

112) Which of the following promotion categories is most likely to use the promotion tools of press releases,
sponsorships, events, and Web pages?
A) sales promotion
B) direct marketing
C) advertising
D) public relations
E) horizontal diversification
Answer: D

113) Shifting away from mass marketing, marketers are developing ________ which are designed to build
closer relationships with customers in more narrowly defined micromarkets.
A) focused marketing programs
B) horizontal diversification programs
C) backward integration strategies
D) new pull strategies
E) new push strategies
Answer: A

114) Which of the following terms best represents the communication channel that a company uses to move
its advertising messages from sender to receiver?
A) decoder
B) media
C) encoder
D) communicator
E) feedback loop
Answer: B

115) Individuals and households that buy or acquire goods and services for personal consumption make up
the ________.
A) consumer market
B) market offering
C) market mix
D) subculture
E) social class
Answer: A

116) Marketing stimuli consist of the four Ps. Which of the following is NOT one of these?
A) product
B) packaging
C) price
D) promotion
E) place
Answer: B

117) Family is one of the ________ factors that influence consumer behavior.
A) regional
B) social
C) personal
D) psychological
E) business
Answer: B

118) A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage,
occupation, economic situation, lifestyle, personality, and self-concept.
A) personal characteristics
B) stereotypes
C) perceptions
D) attitudes
E) psychographics
Answer: A

119) Which of the following terms refers to a specific mix of human traits that may be attributed to a
particular brand?
A) brand perception
B) brand identity
C) brand personality
D) brand concept
E) brand equity
Answer: C

120) Marketing stimuli include which of the following?

A) economic stimuli
B) price stimuli
C) technological stimuli
D) social stimuli
E) cultural stimuli
Answer: B

121) ________ is the most basic determinant of a person's wants and behavior.
A) Culture
B) Brand personality
C) Cognitive dissonance
D) Motive
E) Attitude
Answer: A

122) ________ are people within a reference group who, because of special skills, knowledge, personality,
or other characteristics, exert influence on others.
A) Opinion leaders
B) Innovators
C) Surrogate consumers
D) Stealth marketers
E) Lagging adopters
Answer: A

123) A person's buying choices are influenced by four major psychological factors. Which of the following
is NOT one of these factors?
A) motivation
B) perception
C) association
D) learning
E) beliefs
Answer: C

124) Which of the following is NOT part of Maslow's hierarchy of needs?

A) physiological needs
B) safety needs
C) spiritual needs
D) esteem needs
E) social needs
Answer: C

125) Which of the following is one of the other stimuli present in a buyer's environment apart from a
marketing stimuli?
A) product stimuli
B) cultural stimuli
C) price stimuli
D) place stimuli
E) promotion stimuli
Answer: B

126) Each culture contains smaller ________, or groups of people with shared value systems based on
common life experiences and situations.
A) cultural universals
B) reference groups
C) subcultures
D) monocultures
E) social networks
Answer: C

127) Opinion leaders are also referred to as ________.

A) influentials
B) lower uppers
C) innovators
D) lagging adopters
E) surrogate consumers
Answer: A

128) ________ is a person's pattern of living as expressed in his/her psychographics, and it includes the
individual's activities, interests, and opinions.
A) Personality
B) Culture
C) Lifestyle
D) Motive
E) Social class
Answer: C

129) According to Maslow's hierarchy of needs, which of the following is the LEAST pressing need?
A) physiological needs
B) social needs
C) esteem needs
D) self-actualization needs
E) safety needs
Answer: D

130) According to the model of buyer behavior, which of the following is one of the two primary parts of a
"buyer's black box"?
A) technological stimuli
B) buyer's decision process
C) buyer's spending habits
D) social stimuli
E) promotion stimuli
Answer: B

131) ________ are society's relatively permanent and ordered divisions whose members share similar
values, interests, and behaviors.
A) Social classes
B) Societal norms
C) Reference groups
D) Universal cultures
E) Social networks
Answer: A

132) A ________ consists of the activities an individual is expected to perform according to the people
around him/her.
A) motive
B) role
C) lifestyle
D) life cycle
E) perception
Answer: B

133) ________ refers to the unique psychological characteristics that distinguish an individual or group.
A) Attitude
B) Belief
C) Perception
D) Personality
E) Self-awareness
Answer: D

134) ________ is the process by which people select, organize, and interpret information to form a
meaningful picture of the world.
A) Motivation
B) Perception
C) Dissonance
D) Learning
E) Self-actualization
Answer: B

135) When a company sets a high price for a new product with the intention of reducing the price in the
future, it is using the ________ pricing strategy.
A) market-skimming
B) cost-plus
C) market-segmentation
D) market-penetration
E) competitive
Answer: A

136) Which of the following is true of product line pricing?

A) The price steps take cost differences between products in the line into account.
B) The pricing strategy cannot be used by companies in developed countries.
C) The price steps do not account for the prices of similar products from competitors.
D) The pricing strategy involves overpricing products so that they appeal to the elite.
E) The customer's perception of the value of different features is considered irrelevant.
Answer: A

137) Which of the following price adjustment strategies involves reducing prices to reward customer
responses such as volume purchases, paying early, or participating in sales-support programs?
A) product bundle pricing
B) captive product pricing
C) product line pricing
D) dynamic pricing
E) discount and allowance pricing
Answer: E

138) Which of the following would most likely lead to a company initiating a price increase?
A) weakened economy
B) possession of outdated merchandise
C) excess capacity
D) over-demand
E) possession of defective merchandise
Answer: D

139) ________ is the only element in the marketing mix that produces revenue.
A) Price
B) Product
C) Place
D) Fixed costs
E) Variable costs
Answer: A

140) Companies that set a low price for a new product in order to attract a large number of buyers and a
large market share are using the ________ strategy.
A) market-skimming pricing
B) market-penetration pricing
C) cost-plus pricing
D) inclusive pricing
E) exclusive pricing
Answer: B

141) Which of the following product mix pricing strategies involves pricing additional or accessory products
sold along with the main product?
A) inclusive product pricing
B) exclusive product pricing
C) by-product pricing
D) product bundle pricing
E) optional-product pricing
Answer: E

142) Which of the following is a price adjustment strategy?

A) product bundle pricing
B) by-product pricing
C) product line pricing
D) optional product pricing
E) discount and allowance pricing
Answer: E

143) Which of the following factors would most likely lead to a company initiating a price cut?
A) over-demand
B) weakened economy
C) poor competition
D) cost inflation
E) weak price competition
Answer: B

144) ________ refers to the amount of money charged for a product or service.
A) Value
B) Cost
C) Price
D) Wage
E) Salary
Answer: C

145) ________ includes sales presentations, trade shows, and incentive programs.
A) Direct marketing
B) Sales promotion
C) Personal selling
D) Public relations
E) Advertising
Answer: C

146) Which of the following promotion categories is most likely to use the promotion tools of press releases,
sponsorships, events, and Web pages?
A) sales promotion
B) direct marketing
C) advertising
D) public relations
E) horizontal diversification
Answer: D

147) A company's total marketing communications mix consists of a special blend of advertising, sales
promotion, public relations, personal selling, and direct-marketing tools that the company uses to
communicate customer value and build customer relationships. Which of the following terms best describes
this set of communications tools?
A) the product mix
B) product line filling
C) the promotion mix
D) the price mix
E) horizontal diversification
Answer: C

148) The use of short-term incentives to encourage the purchase or sale of a product or service is called
________.
A) direct marketing
B) sales promotion
C) personal selling
D) public relations
E) publicity
Answer: B

149) Which of the following promotion tools involves building up a good corporate image and handling
unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct marketing
D) public relations
E) advertising
Answer: D

150) Shifting away from mass marketing, marketers are developing ________ which are designed to build
closer relationships with customers in more narrowly defined micromarkets.
A) focused marketing programs
B) horizontal diversification programs
C) backward integration strategies
D) new pull strategies
E) new push strategies
Answer: A

151) Which of the following terms best represents the communication channel that a company uses to move
its advertising messages from sender to receiver?
A) decoder
B) media
C) encoder
D) communicator
E) feedback loop
Answer: B

152) Today's consumers do not need to rely on marketer-supplied information about products and services
because they can use ________ to seek out a wealth of information.
A) push strategies
B) direct marketing
C) the Internet
D) personal selling
E) public relations
Answer: C

153) Which of the following promotion categories is most likely to include the use of displays, discounts,
coupons, and demonstrations?
A) sales promotion
B) direct marketing
C) horizontal diversification
D) public relations
E) advertising
Answer: A

154) In the communication process, the reaction of the receiver after being exposed to a message is called
the ________.
A) response
B) disturbance
C) noise
D) code
E) distortion
Answer: A

155) Which of the following is one of the five major promotion tools?
A) market penetration
B) strategic positioning
C) product line filling
D) market diversification
E) direct marketing
Answer: E

156) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified
sponsor is called ________.
A) sales promotion
B) advertising
C) direct marketing
D) personal selling
E) public relations
Answer: B

157) Which major promotion category uses catalogs, telephone marketing, kiosks, and the Internet?
A) sales promotion
B) direct marketing
C) horizontal diversification
D) public relations
E) advertising
Answer: B

158) Today, several companies are adopting the concept of ________, which carefully combines and
coordinates the company's many communication channels to deliver a clear, consistent, and compelling
message about the organization and its brands.
A) integrated marketing communications
B) pull strategy
C) vertical diversification
D) nonpersonal communication channels
E) buzz marketing
Answer: A

True and False

1. Customer-managed relationships are marketing relationships that are controlled by customers,
therefore, they are of no significance to marketers.
Answer: FALSE

2. "At Trader Joe's, our mission is to provide all our customers the best food and beverage values to be
found anywhere, and the information to make informed buying decisions." This is a product-oriented
business definition.
Answer: FALSE

3. The four major communication functions are encoding, decoding, response, and noise.
Answer: FALSE
4. Advertising involves a personal presentation by the firm's sales force for the purpose of making sales
and building customer relationships.
Answer: FALSE

5. New communications technologies such as cell phones and the Internet give companies new media
for interacting with targeted consumers, but these new technologies also give consumers more
control over the advertising messages they receive.
Answer: TRUE

6. Constantly reduced prices can erode a brand's value in the eyes of customers.
Answer: TRUE

7. Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers
located further away.
Answer: FALSE

8. Direct marketing includes catalogs, direct-response TV, kiosks, the Internet, and mobile marketing.
Answer: TRUE

9. Encoding is the process by which the receiver assigns meaning to symbols.

Answer: FALSE

10. Advertisements for prescription drugs often feature potential benefits and negative side effects that
consumers may experience with use of the medication. These ads present two-sided arguments.
Answer: TRUE

11. Good marketing communications can speed the demise of a poor product.
Answer: TRUE

12. Sales promotion involves building up a good corporate image, and handling or heading off
unfavorable rumors, stories, and events.
Answer: FALSE

13. The integrated marketing concept ties together all of the company's messages and images.
Answer: TRUE

14. Marketing is managing profitable customer relationships.

Answer: TRUE

15. "At Joe's Diner, we serve great burgers" is a product-oriented business definition.
Answer: TRUE

16. The societal marketing concept calls on marketers to balance consumer wants and desires, company
profits, and society's interests.
Answer: TRUE

17. Pricing across a product mix is difficult because various products have related demand and costs, and
products face different degrees of competition.
Answer: TRUE

18. Launching a fighter brand is an effective way to deal with a situation in which the market segment
being lost is price sensitive and will not respond to arguments of higher quality.
Answer: TRUE
19. In product line pricing, price steps should account for differences in customer perceptions of the
value of different features.
Answer: TRUE

20. Excess capacity leads to companies initiating an increase in price.

Answer: FALSE

21. For market skimming to be successful, the costs of producing a smaller volume cannot be so high
that they cancel the advantage of charging more.
Answer: TRUE

22. Consumers who have no past experience with a product are more likely to judge it by its price.
Answer: TRUE

23. If used infrequently, price promotions create "deal-prone" customers who wait until brands go on
sale before buying them.
Answer: FALSE

24. For segmented pricing to be an effective strategy, prices should reflect real differences in customers'
perceived value.
Answer: TRUE

25. An experience such as a vacation can be defined as a market offering.

Answer: TRUE

26. Market offerings are limited to physical products.

Answer: FALSE

27. Market development involves company growth by identifying and developing new market segments
for current company products.
Answer: TRUE

28. A seasonal discount is a price reduction to buyers who buy merchandise while the products are in
season.
Answer: FALSE

29. According to Maslow's hierarchy of needs theory, when the most important need is satisfied, it will
cease to be a motivator, and the person will then try to satisfy the next most important need.
Answer: TRUE

30. Subcultures consist only of religious groups.

Answer: FALSE

31. The microenvironment consists of larger societal forces that affect a company, such as demographic,
economic, political, and cultural forces.
Answer: FALSE

32. Postpurchase behavior is the stage of the buyer decision process in which consumers take further
action after purchase, based on their satisfaction or dissatisfaction.
Answer: TRUE

33. The demographic environment is of major interest to marketers because it involves people, and
people make up markets.
Answer: TRUE
 34. The demographic environment is of major interest to marketers because it involves people, and
people make up markets.
Answer: TRUE

35. Online social networks represent an important avenue to create buzz for marketers.
Answer: TRUE

36. Dissonance-reducing buying behavior typically occurs when a buyer sees little difference among
brands but is highly involved with the purchase.
Answer: TRUE

37. The aim of the entire value delivery network is to serve target customers and create strong
relationships with them.
Answer: TRUE

38. Human needs are shaped by culture and individual personality.

Answer: FALSE

39. Operating control involves checking ongoing performance against the annual plan and taking
corrective action when necessary.
Answer: TRUE

40. The four marketing management functions are analysis, planning, implementation, and control.
Answer: TRUE

41. Children exert little influence on family buying decisions.

Answer: FALSE

42. Constantly reduced prices can erode a brand's value in the eyes of customers.
Answer: TRUE

7) Pricing across a product mix is difficult because various products have related demand and costs,
and products face different degrees of competition.
Answer: TRUE

8) When The Candy Store sets a low initial price in order to get its "foot in the door" and to quickly
attract a large number of buyers, the company is using market-skimming pricing.
Answer: FALSE

9) Internal factors affecting pricing include the company's overall marketing strategy, objectives, and
marketing mix.
Answer: TRUE

10) Consumers who have no past experience with a product are more likely to judge it by its price.
Answer: TRUE

6) Thinking Cap Corp. prices its various cap designs at different price levels, ranging from $2.05 to $5.95. This is an
example of optional product pricing.
Answer: FALSE

7) Online flash sales are used to create buying urgency and make buyers feel lucky to have gotten in on the deal.

Answer: TRUE

8) Price decisions must be coordinated with product design, distribution, and promotion decisions to form a
consistent and effective integrated marketing mix program.

Answer: TRUE

9) If a company faces competition, its demand at different prices will depend on whether competitors' prices stay
constant or change with the company's own prices.

Answer: TRUE

10) A seasonal discount is a price reduction to buyers who buy merchandise while the products are in season.

Answer: FALSE

8) Advertising involves a personal presentation by the firm's sales force for the purpose of making sales and building
customer relationships.

Answer: FALSE

9) As mass markets have fragmented, marketers have shifted away from mass marketing.

Answer: TRUE

10) The four major communication functions are encoding, decoding, response, and noise.

Answer: FALSE
8) Sales promotion involves building up a good corporate image, and handling or heading off unfavorable
rumors, stories, and events.
Answer: FALSE

9) A marketing communications director has overall responsibility for the company's communications
efforts.
Answer: TRUE

10) Buzz marketing involves cultivating opinion leaders and getting them to spread information about a
product or service to others in their communities.
Answer: TRUE

6) Subcultures consist only of religious groups.

Answer: FALSE

7) A person's occupation has no effect on the goods and services that she buys.
Answer: FALSE

8) While an individual's beliefs are difficult to change, an individual's attitudes are easy to change.
Answer: FALSE

9) Early mainstream adopters accept new ideas after the average person.
Answer: FALSE

10) Online social networks represent an important avenue to create buzz for marketers.
Answer: TRUE

6) Social class is based on shared value systems and common life experiences and situations.
Answer: FALSE

7) Personality is a person's pattern of living as expressed in his or her psychographics.

Answer: FALSE

8) Postpurchase behavior is the stage of the buyer decision process in which consumers take further action
after purchase, based on their satisfaction or dissatisfaction.
Answer: TRUE

9) Ed purchased electronic devices such as a smartphone, and tablet after many people he knew already
owned the devices. Ed belongs to the adopter group called lagging adopters.
Answer: TRUE

10) Alternative evaluation is the process by which people select, organize, and interpret information to form
a meaningful picture of the world.
Answer: FALSE

6) Online social networks represent an important avenue to create buzz for marketers.
Answer: TRUE

7) A brand personality is the specific mix of human traits that may be attributed to a particular brand.
Answer: TRUE

8) According to Maslow's hierarchy of needs theory, when the most important need is satisfied, it will cease
to be a motivator, and the person will then try to satisfy the next most important need.
Answer: TRUE
9) Subcultures consist only of religious groups.
Answer: FALSE

10) A person's occupation has no effect on the goods and services that she buys.
Answer: FALSE

6) Children exert little influence on family buying decisions.

Answer: FALSE

7) Alternative evaluation is the process by which people select, organize, and interpret information to form a
meaningful picture of the world.
Answer: FALSE

8) Early adopters are opinion leaders in their communities. They adopt new ideas early but carefully.
Answer: TRUE

9) Personality is a person's pattern of living as expressed in his or her psychographics.

Answer: FALSE

10) Postpurchase behavior is the stage of the buyer decision process in which consumers take further action
after purchase, based on their satisfaction or dissatisfaction.
Answer: TRUE

6) In addition to its customary services, On the Spot, a moving company, also sells the boxes and padding
that are used when moving household furniture. This is an example of customer-segmented pricing.
Answer: FALSE

7) Pricing strategies tend to change and evolve as the average product passes through its life cycle.
Answer: TRUE

8) A seasonal discount is a price reduction to buyers who buy merchandise while the products are in season.
Answer: FALSE

9) Launching a fighter brand is an effective way to deal with a situation in which the market segment being
lost is price sensitive and will not respond to arguments of higher quality.
Answer: TRUE

10) Product costs set the ceiling for prices.

Answer: FALSE

6) In product line pricing, price steps should account for differences in customer perceptions of the value of
different features.
Answer: TRUE

7) Consumers who have no past experience with a product are more likely to judge it by its price.
Answer: TRUE

8) For market skimming to be successful, the costs of producing a smaller volume cannot be so high that
they cancel the advantage of charging more.
Answer: TRUE

9) Excess capacity leads to companies initiating an increase in price.

Answer: FALSE

10) Customer perceptions of the product's value set the floor for prices.
Answer: FALSE

8) The four major communication functions are encoding, decoding, response, and noise.
Answer: FALSE

9) Advertising involves a personal presentation by the firm's sales force for the purpose of making sales and
building customer relationships.
Answer: FALSE

10) As mass markets have fragmented, marketers have shifted away from mass marketing.
Answer: TRUE

8) A marketing communications director has overall responsibility for the company's communications
efforts.
Answer: TRUE

9) Sales promotion involves building up a good corporate image, and handling or heading off unfavorable
rumors, stories, and events.
Answer: FALSE

10) Buzz marketing involves cultivating opinion leaders and getting them to spread information about a
product or service to others in their communities.
Answer: TRUE