Marketing Practice Test #2

A manufacturer of car batteries, who has been selling through an automotive parts wholesaler to garages and service stations, decides to sell directly to retailers. Which of the following will necessarily occur?
a. Elimination of the wholesaler’s profit will result in a lower price to the ultimate customer
b. Elimination of the wholesaler’s marketing functions will increase efficiency
c. The total cost of distribution will be reduced because of the elimination of the wholesaler
d. The marketing functions performed by the wholesaler will be eliminated
e. The wholesaler’s marketing functions will be shifted to or shared by the manufacturer and the retailer
e. The wholesaler’s marketing functions will be shifted to or shared by the manufacturer and the retailer
Which of the following strategies for entering the international market would involve the highest risk?
a. Joint Ventures
b. Exporting
c. Licensing
d. Direct Investment
e. Franchising
d. Direct Investment

The purchase or acquisition of a controlling interest in a foreign business by means other than the outright purchase of shares.

For a US manufacturer of major consumer appliances, the most important leading indicator for forecasting sales is
a. automobile sales
b. computer sales
c. educational level of consumers
d. housing starts
e. number of business failures
d. housing starts
Which of the following statements about the European Union is true?
a. The EU creates a single Pan-European government
b. The EU eliminates trade barriers among member countries
c. The EU is considered the US of Europe, with its capital in Brussels
d. The EU removes all internal and external trade barriers to global trade
e. The EU minimizes inflation through price controls
b. The EU eliminates trade barriers among member countries
In contrast to a selling orientation, a marketing orientation seeks to
a. increase market share by emphasizing promotion
b. increase sales volume by lowering price
c. lower the cost of distribution by direct marketing
d. satisfy the needs of targeted consumers at a profit
e. market products that make efficient use of the firm’s resources
d. satisfy the needs of targeted consumers at a profit
All of the following are characteristics of services EXCEPT:
a. intangibility
b. heterogeneity
c. inseparability
d. perishability
e. inflexibility
e. inflexibility

Heterogeneity is the uniqueness of service offerings. Services are more flexible than products

A fertilizer manufacturer who traditionally markets to farmers through farm supply dealers and cooperatives decides to sell current products to home gardeners through lawn and garden shops. This is an example of
a. market penetration
b. market development
c. product development
d. diversification
e. vertical integration
b. market development

Market development is a growth strategy that identifies and develops new market segments for current products

A manufacturer who refuses to sell to dealers its popular line of office copiers unless the dealers also agree to stock the manufacturer’s line of paper products would most likely be guilty of which of the following?
a. deceptive advertising
b. price discrimination
c. price fixing
d. reciprocity
e. tying contracts
e. tying contracts
Prior to consumption by a final consumer, the last member in an indirect distribution channel is the
a. retailer
b. wholesaler
c. manufacturer
d. factor
e. freight forwarder
a. retailer
In which of the following situations is the number of buying influences most likely to be greatest?
a. A university buys large quantities of paper for computer printers on a regular basis
b. A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture
c. A consumer decides to buy a different brand of potato chips because they are on sale
d. A retail chain is searching for a vendor of lower-priced cleaning supplies
e. A purchasing manager has been asked to locate a second source of supply for corrugated shipping cartons
b. A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture
Which of the following best describes the process of selecting target markets in order to formulate a marketing mix?
a. Strategic planning
b. Product differentiation
c. Market segmentation
d. Marketing audit
e. SWOT analysis
c. Market segmentation
Cooperative advertising is usually undertaken by manufacturers in order to
a. secure the help of the retailer in promoting a given product
b. divide responsibilities between the retailers and wholesalers within a channel of distribution
c. satisfy legal requirements
d. create a favorable image of a particular industry in the minds of consumers
e. provide a subsidy for smaller retailers that enables them to match the prices set by chain stores
a. secure the help of the retailer in promoting a given product
A marketer usually offers a noncumulative quantity discount in order to
a. reward customers for repeat purchases
b. reduce advertising expenses
c. encourage users to purchase in large quantities
d. encourage buyers to submit payment promptly
e. ensure the prompt movement of goods through the channel of distribution
c. encourage users to purchase in large quantities
Which of the following statements about secondary data is correct?
a. secondary data are usually more expensive to obtain than primary data
b. secondary data are usually available in a shorter period of time than primary data
c. secondary data are usually more relevant to a research objective than are primary data
d. secondary data must be collected outside the firm to maintain objectivity
e. previously collected data are not secondary data
b. secondary data are usually available in a shorter period of time than primary data
Missionary salespersons are most likely to do which of the following?
a. sell cosmetics directly to customers in their own homes
b. take orders for air conditioners to be used in a large institution
c. describe drugs and other medical supplies to physicians
d. secure government approval to sell heavy machinery to a foreign government
e. take orders for custom-tailored garments or other specially produced items
c. describe drugs and other medical supplies to physicians

Missionary salespersons are the people who sell goods by describing them

The demand for industrial goods is sometimes called “derived” because it depends on
a. economic conditions
b. demand for consumer goods
c. governmental activity
d. availability of labor and materials
e. the desire to make a profit
b. demand for consumer goods
Behavioral research generally indicates that consumers’ attitudes
a. do not change very easily or quickly
b. are very easy to change through promotion
c. cannot ever be changed
d. can only be developed through actual experience with products
e. are very accurate predictors of actual purchasing behavior
a. do not change very easily or quickly
A channel of distribution refers to the
a. routing of goods through distribution centers
b. sequence of marketing intermediaries from producer to consumer
c. methods of transporting goods from producer to consumer
d. suppliers who perform a variety of functions
e. traditional handlers of a product line
b. sequence of marketing intermediaries from producer to consumer
A major advantage of distributing products by truck is
a. low cost relative to rail or water
b. low probability of loss or damage to cargo
c. accessibility to pick-up and delivery locations
d. speed relative to rail or air
e. ability to handle a wider variety of products than other means
c. accessibility to pick-up and delivery locations
If a firm is using penetration pricing, the firm is most likely trying to achieve which of the following pricing objectives?
a. product quality leadership
b. market-share maximization
c. high gross margin
d. status quo
e. geographic flexibility
b. market-share maximization
The marketer of which of the following products would be most likely to use a promotional mix with a heavy emphasis on personal selling?
a. life insurance
b. pencils
c. transistor radios
d. bread
e. crackers
a. life insurance
Marketing strategy planning includes
a. supervising the activities of the firm’s sales force
b. determining the most efficient way to manufacture products
c. selecting a target market and developing the marketing mix
d. determining the reach and frequency of advertising
e. monitoring sales in response to a price change
c. selecting a target market and developing the marketing mix
A brand that has achieved brand insistence and is considered a specialty good by the target market suggests which of the following distribution objectives?
a. widespread distribution near probable points of use
b. exclusive distribution
c. intensive distribution
d. enough exposure to facilitate price comparison
e. widespread distribution at low cost
b. exclusive distribution
Market segmentation that is concerned with people over 65 years of age is called
a. geographic
b. socioeconomic
c. demographic
d. psychographic
e. behavioral
c. demographic
The XYZ Corporation has two chains of restaurants. One restaurant specializes in family dining with affordable meals. The second restaurant targets young, single individuals, and offers a full bar and small servings. The XYZ Corporation uses which form of targeted marketing strategy?
a. mass marketing
b. differentiated marketing
c. undifferentiated marketing
d. customized marketing
e. concentrated marketing
b. differentiated marketing
The marketing director of a manufacturing company says, “If my wholesaler exceeds the sales record from last month, I agree to give him a paid trip to the Bahamas.” This technique is a form of
a. sales promotion
b. advertising
c. personal selling
d. direct marketing
e. public relations
a. sales promotion
Using a combination of different modes of transportation to move freight in order to exploit the best features of each mode is called
a. conventional distribution
b. developing dual distribution
c. selective distribution
d. intermodal transportation
e. freight forwarding
d. intermodal transportation
Which of the following is a major disadvantage associated with the use of dual distribution?
a. it is usually very expensive
b. it can cause channel conflict
c. it provides limited market coverage
d. it is only appropriate for corporate channels
e. some distribution channel functions are not completed
b. it can cause channel conflict
The three strategic options of distribution intensity are
a. concentrated, exclusive, and intensive
b. intensive, extensive, and selective
c. intensive, exclusive, and selective
d. extensive, concentrated, and selective
e. extensive, integrated, and concentrated
c. intensive, exclusive, and selective
Which of the following would be considered a nonprofit organization?
a. A homeless shelter that charges a fee for its services and uses the proceeds for the upkeep of the shelter
b. a drug rehab center in which revenues in excess of cost go to the owners
c. a vaccination clinic owned by an individual entrepreneur
d. a bookstore open to the public for business
e. a hospital that has a publicly traded common stock
d. a bookstore open to the public for business
Which of the following approaches for entering international markets involves granting the rights to a patent, trademark, or manufacturing process to a foreign company?
a. exporting
b. franchising
c. licensing
d. joint venturing
e. contract manufacturing
c. licensing
Reference groups are more likely to influence a consumer’s purchase when the product being purchased is
a. important
b. inexpensive
c. familiar
d. intangible
e. socially visible
e. socially visible
Which of the following is true of the product life cycle?
a. It can accurately forecast the growth of new products
b. it reveals that branded products have the longest growth phase
c. it cannot be applied to computer products that quickly become obsolete
d. it is based on the assumption that products go through distinct stages in sales and profit performance
e. it proves that profitability is highest in the mature phase
d. it is based on the assumption that products go through distinct stages in sales and profit performance
The primary purpose of market segmentation is to
a. combine different groups to meet their needs
b. create sales territories of similar size and market potential to determine sales quotas
c. reduce market demand to a manageable size
d. profile the market as a whole to optimize marketing efforts
e. allocate marketing resources to meet the needs of specific segments
e. allocate marketing resources to meet the needs of specific segments
A marketing expert said that he could have advertised a brand of soap as a detergent for men with dirty hands, but instead chose to advertise it as a toilet bar for women with dry skin. This illustrates the marketing principle is known as
a. product positioning
b. sales promotion
c. cannibalization
d. deceptive advertising
e. undifferentiated marketing
a. product positioning
The process of ensuring that people or companies may have a need for a salesperson’s product is known as
a. cold calling
b. presenting
c. approaching
d. prospecting
e. targeting
d. prospecting
Which of the following is a primary disadvantage of direct marketing?
a. it is difficult to measure response
b. it is not personal
c. it is poorly targeted
d. it tends to have high costs per contact
e. it has a fragmented audience
d. it tends to have high costs per contact
A formal statement of standards that governs professional conduct is called a
a. customer bill of rights
b. business mission statement
c. corporate culture
d. code of ethics
e. caveat emptor
d. code of ethics
Maxine suddenly realizes that she is out of paper towels. She remembers that she last bought Max Dri Towels, so she stops at the store and picks up another roll of Max Dri on her way home from work. In this example, Maxine uses what form of information search in her decision process?
a. limited problem solving
b. extended problem solving
c. internal information search
d. compensatory information search
e. information search by personal sources
c. internal information search
The ability to tailor marketing processes to fit the specific needs of an individual customer in internet marketing is called
a. customization
b. community building
c. standardization
d. mediation
e. product differentiation
a. customization
Which of the following would most likely be considered a form of direct marketing?
a. Mail-order catalogs
b. Convenience store
c. Department stores
d. Warehouse clubs
e. Supermarkets
a. Mail-order catalogs
ABC Company agrees to pay a certain amount of a retailer’s promotional costs for advertising ABC’s products. This is an example of
a. cooperative advertising
b. reminder advertising
c. comparison advertising
d. slotting allowance
e. a premium
a. cooperative advertising
To save time and money, a marketing research team uses data that have already been gathered for some other purpose. Which type of data is the team using?
a. Sample
b. Primary
c. Secondary
d. Survey
e. Experiment
c. Secondary
Positioning refers to
a. the perception of a product in customers’ minds
b. the store location in which a marketing manager suggests a product be displayed
c. where the product is placed on the shelf
d. which stores will distribute a company’s product
e. where the new product is first advertised
e. where the new product is first advertised
Which of the following best describes members of a buying center?
a. Everyone involved in making the purchase decision
b. Everyone involved in signing contracts
c. Everyone employed in the purchasing department
d. Direct reports of the VP of purchasing
e. Technical experts who advise on product specifications
a. Everyone involved in making the purchase decision
Which of the following most accurately describes agent wholesalers?
a. they take title to goods that they sell to other intermediaries
b. they do not take title to goods that they sell to other intermediaries
c. they take title to goods that they sell to final consumers
d. they do not take title to the goods that they sell on commission to final consumers
e. they manufacture the goods that they sell to final consumers
b. they do not take title to goods that they sell to other intermediaries
Which of the following are key characteristics of services?
a. Cost, time, quality, and value
b. Uncertainty, variability, and standardization
c. Intangibility, durability, and standardization
d. Intangibility, perishability, and variability
e. Tangibility, variability, and uncertainty
d. Intangibility, perishability, and variability
The growth of service industries is primarily the result of
a. increasingly complex and specialized customer needs
b. a rise in income and the degree of customer input
c. rapid growth of population and government tracking systems
d. increased use of labor-intensive technology
e. decreasing demand for equipment-based services
a. increasingly complex and specialized customer needs
Which of the following is the fastest growing nonstore retail segment in the US?
a. television home shopping
b. automatic vending
c. online retailing
d. catalog marketing
e. direct-response marketing
c. online retailing
While writing a marketing plan, Melanie decides that the marketing objective should be “to increase market share by 5%.” A weakness in this objective is that
a. it is not measurable
b. it should not be related to brand image rather than market share
c. it does not specify a time period
d. if the product is an industrial product, the objective should specify product quality
e. it does not address all elements of the business plan
c. it does not specify a time period
Which of the following is the first step in the sales process?
a. Prospecting
b. sales presentation
c. gaining commitment
d. approach
e. precall planning
a. Prospecting
Which of the following is an example of business-to-business buying?
a. John buys a new home stereo
b. Hannah pays for a new TV by monthly installment
c. Daniel decides on which college to attend
d. Avery purchases a new office desk for his company
e. Corey buys a soft drink from a vending machine
d. Avery purchases a new office desk for his company
President John F. Kennedy’s assertion that consumers have certain rights led to legislation that guaranteed all of the following except the right to
a. be informed
b. be heard
c. choose
d. bargain
e. safety
d. bargain
Harmony Households is the largest home improvement retailer in China. Because of its size and market power, the firm can insist upon desired product features, delivery schedules, and price points from its suppliers. Harmony Households is
a. a primary intermediary
b. an agent retailer
c. a multilevel distributor
d. a channel captain
e. a dominant distributor
d. a channel captain
Which of the following is NOT a segmentation criterion or consideration used for choosing a target market?
a. Market accountability
b. Market identifiability and measurability
c. Market substantiality
d. Market accessibility
e. Market responsiveness
a. Market accountability
Rachel Terry, regional manager at Wilcon Solvents, Inc., compares last quarter’s sales with the levels projected in the firm’s marketing plan. She identifies three solvent brands whose sales are below projections and initiates a series of inquiries to discover the reasons for the shortfall. Ms. Terry is engaged in which stage of the strategic marketing process?
a. environmental scanning
b. opportunity analysis
c. planning
d. implementation
e. control
e. control
Richard Weiss, SA, is a Swiss watch manufacturer. One of its two major brands offers ruggedness, reliability, and durability to active sports enthusiasts. The other offers elegance and stylishness to fashion conscious consumers. Which of the following segmentation approaches is this firm using?
a. demographic
b. geographic
c. usage
d. benefits sought
e. socioeconomic
d. benefits sought
Compared with agent intermediaries, merchant intermediaries
a. sell only to organizational customers
b. sell only in export markets
c. are employees of the manufacturer
d. are compensated by a commission on sales
e. take title to the goods they sell
e. take title to the goods they sell
Gabriella’s is an Italian producer of fashion jeans. In this highly competitive market, the firm wishes to match the advertising efforts of its competitors by achieving a share of voice (promotion) which is roughly equal to its share of market (sales). This approach to promotional budgeting is called
a. all you can afford
b. percent of sales
c. allocation per unit
d. competitive parity
e. objective and task
d. competitive parity
On its e-commerce website, XYZMusic.com sells songs from new artists who produce their own music. The site also hosts ads from other e-businesses. The ads presented to a user depend on the type of music the user is reviewing. XYZMusic.com collects ad revenue when users follow links in the ads to the advertisers’ Web sites. XYZMusic.com’s advertising revenue is based on
a. cost-per-thousand exposures
b. click-through rates
c. ad presentation rates
d. unique site-visitor data
e. site-traffic data
b. click-through rates
Which of the following organizations administers the GATT (General Agreement on Tariffs and Trade)?
a. The United Nations
b. The European Union
c. The World Trade Organization
d. The North American Free Trade Agreement
e. The securities and Exchange Commission
c. The World Trade Organization
At the most basic level, products and services should be viewed as a collection of
a. attributes
b. expectations
c. benefits
d. features
e. promises
c. benefits
The primary function of promotion is to
a. sell products and services
b. create awareness
c. inform, persuade, and remind
d. make a demand more elastic
e. eliminate competition
c. inform, persuade, and remind
A marketing strategy is composed of both
a. a target market and market opportunities
b. a target market and related marketing mix
c. a target market and SWOT analysis
d. a marketing mix and required resources
e. a marketing mix and competition
b. a target market and related marketing mix
Which of the following is not an advantage of internet advertising as compared with traditional advertising?
a. target-market selectivity
b. tracking ability
c. broad demographic reach
d. deliverability
e. Interactivity
c. broad demographic reach
Which of the following statements most accurately describes antidumping laws?
a. they set the price that foreign producers must charge
b. they control the maximum price of imported products
c. they prevent foreign producers from competing on the basis of price
d. they prevent foreign-manufactured goods from selling at below cost
e. they protect consumers from cheaply manufactured foreign products
d. they prevent foreign-manufactured goods from selling at below cost
In selling a new global logistics information system to a large client, the national account manager of a leading supply chain management vendor learns that client executives from marketing, production, human resources, finance, and business strategy will participate in the decision-making process. Which of the following terms best describes the scope of the buying initiative?
a. universal
b. specialized
c. standardized
d. cross-functional
e. decentralized
d. cross-functional
Which of the following lists the correct sequence of steps in the consumer decision-making process?
a. Need recognition, evaluation, purchase decision, invoked set, postpurchase behavior
b. felt need, response to stimulus, evaluation of alternatives, postpurchase decision, purchase behavior
c. alternative invoked set, need recognition, purchase decision, postpurchase evaluation
d. Information search, need positioning, evaluation of alternatives, product purchase decision, postpurchase satisfaction
e. need recognition, information search, evaluation of alternatives, purchase, postpuchase behavior
e. need recognition, information search, evaluation of alternatives, purchase, postpuchase behavior
Consumers tend to be more satisfied with their purchase of a product when
a. cognitive dissonance develops after the purchase
b. the price of the product falls after the purchase
c. they research the product before the purchase
d. their options are inconsistent with their values
e. there is no further contact with the seller
c. they research the product before the purchase
Which of the following is true of global marketing standardization?
a. it occurs more frequently with consumer products than with industrial goods
b. it encourages individualized variation in the product, packaging, and pricing for each nation or local market
c. it addresses legal and cultural differences
d. it assumes that global consumers increasingly have similar needs
e. it reduces profit margins
d. it assumes that global consumers increasingly have similar needs
The three functional roles of marketing research are
a. explanatory, normative, and descriptive
b. predictive, normative, and innovative
c. descriptive, diagnostic, and predictive
d. proactive, interactive, and reactive
e. descriptive, explanatory, and predictive
e. descriptive, explanatory, and predictive
A product is classified as a business product rather than a consumer product based on its
a. tangible and intangible attributes
b. life-cycle position
c. promotion type
d. pricing strategy
e. intended use
e. intended use
Which one of the following changes would most likely motivate a firm to reposition a brand?
a. shifting demographics
b. stock market fluctuations
c. an economic downturn
d. changes in available financial resources
e. rising sales
a. shifting demographics
An advertisement for prospective applicants to a college shows individual students along with the slogan “I am getting ready to seize my destiny.” The ad appeals to which need in Maslow’s hierarchy?
a. Physiological
b. esteem
c. social affiliation
d. self-actualization
e. safety
d. self-actualization
As two brands become closer to each other or perceptual (positioning) map, they will become
a. less perceptually alike
b. closer in price
c. more objectively alike
d. less likely to be direct competitors
e. more similarly perceived by consumers
e. more similarly perceived by consumers
Lutece Brands, Inc., acknowledges that its French pastries may contribute to health problems in some of its customers, but the company claims that the benefits (such as personal pleasure and taste) outweigh the risks. The company’s approach to moral reasoning is best described as
a. moral idealism
b. utilitarianism
c. categorical imperative
d. enlightened self-interest
e. situational ethics
b. utilitarianism
Which of the following lists the correct order of the steps of the target marketing process?
a. Segmentation, positioning, and targeting
b. targeting, segmentation, and positioning
c. positioning, targeting, and segmentation
d. segmentation, targeting, and positioning
e. positioning, segmentation, and targeting
d. segmentation, targeting, and positioning
Which of the following promotional tools is most effective during the alternative evaluation step of the consumer purchasing process?
a. Advertising
b. publicity
c. sales promotion
d. event sponsorship
e. product placement
c. sales promotion
Place the four steps in the marketing research process in the correct order:
Determine the research design
Define the problem
Collect data
Choose the data collection method
1. Define the problem
2. Determine the research design
3. Choose data collection method
4. Collect data