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1.  A _ consists of people, equipment, and procedures to gather,
     sort, analyze, evaluate, and distribute needed, timely, and accurate information to
     marketing decision makers.
     a.  management information system
     b.  marketing information system
     c.  financial information system
     d.  management intelligence plan

1.  A policy means that a firm sets one price for all buyers in a given
     product or service line.
     a.  fixed-price
     b.  variable-price
     c.  dynamic-price
     d.  standard-price

2.  ___ is the only element of the marketing mix that produces revenue.
     a.  Product
     b.  Price
     c.  Place (distribution)
     d.  Promotion

3.  Companies set __ as their major objective if they are troubled by too
     much capacity, heavy competition, or changing consumer wants.
     a.  current profit maximization
     b.  survival
     c.  market share leadership
    d.   product quality leadership

4.  If a company believes that the company with the largest market share will enjoy the
     lowest costs and highest long-run profits, that company will probably choose which
     of the following pricing objectives as their primary course of action?
     a.  current profit maximization
     b.  product quality leadership
     c.  market share leadership
     d.  survival

5. __ set(s) the floor for the price that the company can charge for its
     product.
     a.  Supply
     b.  Demand
     c.  Costs
     d.  Nonprofit factors

6. The type of market in which no single buyer or seller has much effect on determining
     the going market price is called:
     a.  pure competition.
     b.  monopolistic competition.
     c.  oligopolistic competition.
     d.  pure monopoly.

7. Setting prices to break even on the costs of making and marketing a product or make
     the target profit it is seeking is called:
     a.  cost-plus pricing.
     b.  perceived-value pricing.
     c.  break-even pricing.
     d.  Going-rate pricing.

8. Using a low sticker price on automobiles to attract customers and then selling models
     with additional accessory features to meet customer needs is a form of which of the
     following pricing strategies?
     a.  optional-product pricing
     b.  captive-product pricing
     c.  by-product pricing
     d.  product line pricing

9. With respect to setting pricing amounts, the belief that individual digits in a
     product’s price have symbolic and visual qualities that should be considered in setting
     price is linked to:
     a.  psychological pricing.
     b.  promotional pricing.
     c.  symbolic pricing.
     d.  psychographic pricing.

10. When a seller selects a given city as the source from which to charge all customers
     freight costs from that location, they are practicing which of the following?
     a.  FOB-origin pricing
     b.  uniform-delivered pricing
     c.  zone pricing
     d.  basing-point pricing

1. Throughout history, the most common pricing approach was to install a fixed-
     price policy (setting one price for all buyers).

2. One of the most common mistakes made by companies with respect to pricing is that
     their pricing is too cost-oriented.

3. Supply sets the floor for the price that the company can charge for its product.

4. The simplest pricing method is target profit pricing.

5. One of the ways to respond to a competitor that changes its price would be to
     improve quality and increase price.

1.  A set of interdependent organizations involved in the process of making a product or
     service available for use or consumption by the consumer or business user is called a:
     a.  retailer.
     b.  wholesaler.
     c.  distribution channel.
     d.  logistics function.

2.  From the economic system’s point of view, the role of marketing intermediaries is to
     transform:
     a.  raw products into finished products.
     b.  consumer needs into producer needs.
     c.  consumer needs and wants into product desires.
     d.  assortments of products made by producers into the assortments wanted by
          consumers.

3.  Members of the marketing channel perform many key functions.  Which of the
     following would be among those key functions?
     a.  negotiation
     b.  sensing
     c.  producing
     d.  creating

4. With respect to a channel of distribution, the number of intermediary levels within
     the channel indicates the of a channel.
     a.  width
     b.  depth
     c.  length
     d.  similarity

5. Using manufacturer’s representatives or sales branches is usually a characteristic of
     which of the following channel forms?
     a.  business marketing channels
     b.  customer marketing channels
     c.  service marketing channels
     d.  direct marketing channels

6. When a company like Coca-Cola has disagreements with some of its bottlers over
     business practices, it is a form of:
     a.  horizontal conflict.
     b.  vertical conflict.
     c.  layer-based conflict.
     d.  parallel conflict

7. Cooperation, role assignment, and conflict management in the channel of distribution
     are attained through strong channel:
     a.  power.
     b.  positioning.
     c.  leadership.
     d.  threats.

8. IBM at one time only sold through their own sales force.  Today, however, the market
     has caused changes in IBM’s distribution philosophy.  The company now has 18
     new channels.  The correct description of this form of marketing would be to
     characterize IBM’s approach as being one where are used.
     a.  vertical marketing channels
     b.  parallel marketing channels
     c.  hybrid marketing channels
     d.  horizontal marketing channels

9. When a marketer is in the process of identifying its major channel alternatives, it
     should determine all of the following EXCEPT:  (Choose the LEAST LIKELY.)
     a.  the ownership of the intermediary.
     b.  the types of intermediaries.
     c.  the number of intermediaries.
     d.  the responsibility of each channel member.

10. Managing value-added flows of materials, final goods, and related information
     between suppliers, the company, resellers, and final users is called:
     a.  a channel of distribution.
     b.  marketing network analysis.
     c.  supply chain management.
     d.  conscription flow management.

1. One of reasons that distribution decisions usually can be managed is that the channel
     decision involves relatively short-term commitments.

2. All institutions in the distribution channel are connected by several types of flows
     and one of these flows is described as being flow of ownership.

3. Vertical marketing systems are now challenging conventional marketing channels
     for dominance in distribution networks.

4. The displacement of traditional resellers from a marketing channel by radical new
     types of intermediaries is called disintermediation.

5. A channel of distribution is another term for physical distribution.

1.  Broadly defined, products include all of the following EXCEPT:
     a.  money and payments.
     b.  services.
     c.  ideas.
     d.  persons.

2.  All of the following are considered to be characteristics of the actual product
     category or feature EXCEPT:
     a.  quality level.
     b.  installation.
     c.  brand name.
     d.  design.

3. The best illustration of a shopping product listed below would be:
     a.  a television.
     b.  a magazine.
     c.  fine crystal.
     d.  life insurance.

4. Beyond simply reducing product defects, the ultimate goal of total quality is to
     improve:
     a.  distribution relationships.
     b.  promotional methods.
     c.  returns and allowances.
     d.  customer satisfaction and value

5. When a brand has achieved an impressive reputation for loyalty, performance, and
     quality, it can be said to have:
     a.  brand endurance.
     b.  brand equity.
     c.  brand bonding.
     d.  brand prestige

6. A private brand is a brand created and owned by:
     a.  a manufacturer of a product or service.
     b.  a reseller of a product or service.
     c.  an international cartel.
     d.  a private family business

7. If Mark Mars pays Hershey Foods Corporation for the right to use its name on his
     line of T-shirts, then Mr. Mars is using which type of policy?
     a.  licensing
     b.  manufacturer’s branding
     c.  private branding
     d.  co-branding

8. Using a successful brand name to introduce additional items in a given product
     category under the same brand name (such as new flavors, forms, colors, added
     ingredients, or package sizes) is called:
     a.  a line extension.
     b.  a brand extension.
     c.  multibranding.
     d.  new brands.

9.  The product life cycle presents two major challenges.  First, a firm must be good at
     developing new products to replace aging ones.  Second, a firm must be good at:
     a.  adapting its marketing strategies in the face of changing tastes, technologies,
          and competition as products pass through life-cycle stages.
     b.  image building to ensure that products sell well.
     c.  primary demand forecasting so product winners can be chosen rather than
          making poor investments with product losers.
     d.  acquisition of other companies since this is the only real way to ensure new
          product success--go with what has worked in the past.

10. One reason that idea screening is a critical stage in the new-product development
     process is that:
     a.  product-development costs rise greatly in later stages and the company only wants
          those products that can succeed.
     b.  competitors can quickly steal ideas so the company wants only those ideas that
          can be protected with patents.
     c.  international competition and markets demand that all ideas be culturally sensitive.
     d.  the Federal government carefully monitors each company’s idea screening process
          to make sure no national security matters are at stake.

11. If Toyota describes one of its cars of the future as being “a moderately priced
     subcompact designed as a second family car to be used around town; the car is ideal
     for running errands and visiting friends,” then the company has just stated a potential
     new product in terms of a:
     a.  product idea.
     b.  product image.
     c.  product concept.
     d.  product feature.

12. When a company reviews sales, costs, and profit projections for a new product to find
     out whether these factors satisfy the company’s objectives, they are in which of the
     following new-product development stages?
     a.  concept development and testing
     b.  commercialization
     c.  business analysis
     d.  marketing strategy development

13. The product life cycle concept has many varied uses.  The PLC can describe all of
     the following EXCEPT:
     a.  a product class.
     b.  a product form.
     c.  a product shape.
     d.  a product brand.

14. Which of the following is characterized by a extremely peaked demand curve that
     rises rapidly and declines rapidly in a short period of time?
     a.  a genre
     b.  a style
     c.  a fashion
     d.  a fad

15. The stage of the PLC characterized by overcapacity, greater competition, and the
     eventual elimination of weaker competitors is called the:
     a.  decline stage.
     b.  introduction stage.
     c.  growth stage.
     d.  maturity stage.

1. If Dannon Yogurt produces an economy-sized yogurt, this would be an example
     of a line extension.

2. Product mix width refers to the number of different product lines the company
     carries.

3. Service inseparability means that services cannot be separated from their providers.

4. If a company were to change characteristics of the product such as quality, features,
     or style, it would most likely do this in the maturity phase of the product life cycle.

5. Selective distribution is a characteristic of the introduction stage of the PLC.

1.  Today, marketing must be understood in a new sense that can be characterized as:
     a.  “telling and selling.”
     b.  “management of youth demand.”
     c.  “get there first with the most.”
     d.  “satisfying customer needs.”

2.  When backed by buying power, wants become:
     a.  needs.
     b.  relationships.
     c.  object relationships.
     d.  demands.

3.  With respect to customer satisfaction, smart companies aim to:
     a.  give the customer anything and everything they want.
     b.  make customers addicted to their products and services.
     c.  delight customers by promising only what they can deliver, then delivering more
          than they promise.
     d.  always save the customers money, time, and other resources.

4.  Marketing occurs when people decide to satisfy needs and wants through .
     a.  selling
     b.  exchange
     c.  transaction
     d.  relationships

5. All of the following organizational philosophy phrases are associated with the
     marketing concept EXCEPT:  (Pick the phrase that DOES NOT fit.)
     a.  “We make it happen for you.”
     b.  “To fly, to serve.”
     c.  “If it ain’t broke, don’t fix it.”
     d.  “Let us exceed your expectations.”

6.  Which of the following terms best describes the environment that includes the forces
     close to the company that affect its ability to serve its customers—the company,
     suppliers, marketing channel firms, customer markets, competitors, and publics?
     a.  microenvironment
     b.  macroenvironment
     c.  global environment
     d.  networked environment

7. If your company were to make a product, such as a suit of clothes, and sell that
     product to a retailer, your company would have sold to the ___ market.
     a.  reseller
     b.  business
     c.  government
     d.  service

8. According to Engel’s laws, as income rises:
     a.  the percentage spent on food rises.
     b.  the percentage spent on housing increases.
     c.  the percentage spent on other categories increases.
     d.  the percentage spent on savings remains constant.

9. __ beliefs and values are passed on from parents to children and are
     reinforced by schools, churches, business, and government.
     a.  Crucial
     b.  Core
     c.  Primary
     d.  Secondary

10. Companies have recently recognized that “Spirituality is in.”  This recognition and
     the corresponding marketing strategy built around it is a reflection of which of the
     following views?
     a.  people’s view of others
     b.  people’s view of themselves
     c.  people’s view of the universe
     d.  people’s view of nature

1. Selling is the delivery of customer satisfaction at a profit.

2. The difference between the values the customer gains from owning and using a
     product and the costs of obtaining the product is called customer satisfaction.

3. The microenvironment is the actors and forces outside marketing that affect
     marketing management’s ability to develop and maintain successful transactions with
     its target customers.

4. Secondary beliefs and values do not change often, are passed on from parents to
     children, and are reinforced by schools, churches, business, and government.

5. An example of a firm that has an environmental management perspective would be
     one that hires a lobbyist to influence legislation affecting their industry.

1.  Marketers are always trying to spot in order to discover new
     products that might be wanted.
     a.  opinion graphers
     b.  dissonant groups
     c.  cultural shifts
     d.  benchmarks

2. Groups which have a direct influence and to which a person belongs are called:
     a.  membership groups.
     b.  facilitative groups.
     c.  bonding groups.
     d.  social groups.

3. __ is(are) a person’s unique psychological characteristics that lead to
     relatively consistent and lasting responses to his or her own environment.
     a.  Psychographics
     b.  Personality
     c.  Demographics
     d.  Lifestyle

4. The theory of motivation that views people as responding to urges that are
     repressed but never fully under control was developed by:
     a.  Marshall.
     b.  Kant.
     c.  Freud.
     d.  Maslow.

5. __ is the process by which people select, organize, and interpret
     information to form a meaningful picture of the world.
     a.  Readiness
     b.  Selectivity
     c.  Perception
     d.  Motivation

6. In 1957, a researcher announced that he had flashed the phrases “Eat popcorn” and
     “Drink Coca-Cola” on a screen in a movie theater every five seconds for 1/300th of a
     second.  He reported that although viewers did not consciously recognize these
     messages, they absorbed them subconsciously and bought 58 percent more popcorn
     and 18 percent more Coke.  This process was eventually named:
     a.  deceptive advertising.
     b.  subliminal advertising.
     c.  psychological manipulation.
     d.  psychological modeling and transfusion.

7. Cognitive dissonance occurs in which stage of the buyer decision process model?
     a.  need recognition
     b.  information search
     c.  evaluation of alternatives
     d.  postpurchase conflict

8. With respect to adopter categories, the ___ are skeptical and they
     adopt an innovation only after a majority of people have tried it.
     a.  early adopters
     b.  early majority
     c.  late majority
     d.  laggards

9.  During one of the steps in the marketing segmentation, targeting, and positioning
     process, the marketer develops measures of segment attractiveness.  This procedure
     belongs in the category of:
     a.  market segmentation.
     b.  market targeting.
     c.  market massing.
     d.  market positioning.

10. American Express offers not only its traditional green cards but also gold cards,
     corporate cards, and even a black card, called the Centurian, with a $1,000 annual
     fee aimed at a small group of “superpremium customers.”  Which of the following
     marketing efforts is American Express following with their credit card policies?
     a.  macromarketing
     b.  segment marketing
     c.  niche marketing
     d.  self-marketing

11._ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.
a.Niche marketing
b.Micromarketing
c.Segment marketing
d.Mass marketing

12.__ is the process through which firms interact one-to-one with
     masses of customers to create customer-unique value by designing products and
     services tailor-made to individual needs.
a.Mass marketing
b.Detail marketing
c.Mass globalization
d.Mass customization

13.All of the following would be ways to segment within the category of behavioral variable segmentation EXCEPT:
a.occasions.
b.user status.
c.loyalty status.
d.lifestyle.

14. “Coke in the morning” is an attempt to segment according to which of the following?
     a.  gender segmentation
     b.  psychographic segmentation
     c.  benefit segmentation
     d.  occasion segmentation

15.All of the following are major variables that can be used to segment business markets
     EXCEPT:
a.operating characteristics.
b.psychographics.
c.demographics.
d.situational factors

16.Married and unmarried women may use the same perfume, and might respond in a similar way to promotional sales of this fragrance.  It might, therefore, be difficult to consider that marital status designates separate segments in this case.  Which of the following requirements of effective segmentation would probably rule out segmentation based on marital status in this case?
a.actionable
b.substantial
c.differentiable
d.measurable

18. The positioning task consists of three steps.  Which of the following does not belong?
     a.  Identifying a set of possible competitive advantages upon which to build a position.
     b.  Choosing the right competitive advantages.
     c.  Comparing the position with ethical and legal guidelines established by the trade.
     d.  Selecting an overall positioning strategy.

19. Gaining competitive advantage through speedy or careful delivery is an example of
     which type of differentiation?
     a.  product
     b.  services
     c.  personnel
     d.  image

20. In determining which differences to promote, focusing on a difference that delivers a
     highly valued benefit to target buyers would mean selecting the difference that is
     most:
     a.  important.
     b.  distinctive.
     c.  superior.
     d.  communicable

1. With respect to studying consumer or buyer behavior, the central question for
     marketers is: “How do consumers respond to various marketing efforts the company
     might use?”

2. The highest order of needs within Maslow’s hierarchy of needs scheme is esteem
     needs such as self-esteem, recognition, or status.

3. The larger the gap between expectations and performance, the greater the
     consumer’s dissatisfaction.

4. Market segmentation is the process of taking a market and dividing the buyers into
     distinct groups for which marketing mixes can be constructed.

5. Micromarketing is focusing on subsegments or niches with distinctive traits that may
     seek a special combination of benefits.

17. Deciding to target several market segments and design separate offers for each is
     called:
     a.  undifferentiated marketing.
     b.  differentiated marketing.
     c.  concentrated marketing.
     d.  turbo marketing.

2.  A good marketing information system balances the information managers would
     like to have against:
     a.  information that competitors have.
     b.  information that is available.
     c.  what they really need and what is feasible to offer.
     d.  what is supplied by consultants.

3.  __ is(are) the systematic collection and analysis of publicly available
     information about competitors and developments in the marketing environment.
     a.  Marketing research
     b.  Internal company records
     c.  Marketing intelligence
     d.  Competitor analysis

4. The type of research used to describe things such as the market potential for a product
     is called:
     a.  descriptive research.
     b.  causal research.
     c.  exploratory research.
     d.  investigative research.

5. Research objectives can be translated into specific information needs.  Which of the
     following would not be a good example of such specific information needs that could
     be matched to research objectives as applied to consumers?
     a.  demographic, economic, and lifestyle characteristics of users
     b.  consumer-usage patterns
     c.  profit margins
     d.  attitudes toward proposed new packaging

6. Steelcase office equipment company, when designing its highly successful Personal
     Harbor modular office units, set up video cameras at various companies to study
     motions and behavior patterns that customers themselves might not even notice.
     This would be an example of which of the following research approaches?
     a.  questionnaire research
     b.  observational research
     c.  survey research
     d.  experimental research

7. One of the problems with focus group interviewing is the potential for greater:
     a.  interviewer bias.
     b.  respondent boredom.
     c.  respondent ignorance.
     d.  interviewer incompetence.

8. When the researcher is using a _, each population member has a
     known chance of being included in the sample.
     a.  sampling unit
     b.  sample size measure
     c.  probability sample
     d.  nonprobability sample

9. If the researcher is faced with a research problem wherein the population needs to be
     divided into mutually exclusive groups (such as age groups), and random samples
     are drawn from each group, the researcher has just selected a(n):
     a.  judgment sample.
     b.  sample random sample.
     c.  convenience sample.
     d.  stratified random sample.

10. Francis Smith wishes to pull psychographic data about customers’ wants and desires
     from the company’s database.  The company has been maintaining elaborate records
     about the wants and desires of its customers for years in what would now be called
     a data warehouse.  When Francis pulls the needed data gems from the data
     warehouse, she has just participated in the process of:
     a.  data research.
     b.  nonmetric-multidimensional scaling.
     c.  data mining.
     d.  data probing.

1. One of the components of an organization’s marketing information system is
     marketing intelligence.

2. Marketing research is the systematic collection and analysis of publicly available
     information about competitors and developments in the marketing environment.

3. Observational research is the gathering of primary data by asking people questions
     about their knowledge, attitudes, preferences, and buying behavior.

4. Marketing information has no value until it is used to make better marketing
     decisions.

5. A good marketing information system balances the information users’ ability to pay
     against a hierarchy of their needs.