MKTG 490 Fall 07 Exam Pool

MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS
*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***

Chapter 1: Defining Mareting f!r the "1#t Cent$r%
GENERAL CONCEPT &UESTIONS
M$'tip'e Ch!i(e
1. Good marketing is no accident, but a result of careful planning and ________.
a. execution
b. selling
c. strategies
d. tactics
e. research
Answer: a Page: 4 e!el of difficult": #edium
$. #arketing is both an %art& and a %science&'there is constant tension between the formulated side of
marketing and the ________ side.
a. creati!e
b. selling
c. management
d. forecasting
e. beha!ior
Answer: a Page: 4 e!el of difficult": (as"
). *he most formal definition of marketing is ________.
a. meeting needs profitabl"
b. identif"ing and meeting human and social needs
c. the 4Ps +Product, Price, Place, Promotion,
d. an organi-ational function and a set of processes for creating, communicating, and deli!ering,
!alue to customers, and for managing customer relationships in wa"s that benefit the organi-ation
and its stake holders.
e. impro!ing the .ualit" of life for consumers
Answer: d Page: / e!el of difficult": #edium
4. #arketing management is ________.
a. managing the marketing process
b. monitoring the profitabilit" of the companies products and ser!ices
c. selecting target markets
d. de!eloping marketing strategies to mo!e the compan" forward
e. the art and science of choosing target markets and getting, keeping, and growing customers
through creating, deli!ering, and communicating superior customer !alue
Answer: e Page: / e!el of difficult": (as"
1
0. A transaction in!ol!es ________.
a. at least two parties
b. each part" has something that might be of !alue to the other part"
c. each part" is capable of communication and deli!er"
d. each part" is free to accept or re1ect the exchange offer
e. all of the abo!e
Answer: e Pages: /23 e!el of difficult": #edium
/. ________ goods constitute the bulk of most countries4 production and marketing efforts.
a. 5urable
b. 6mpulse
c. Ph"sical
d. 7er!ice
e. (!ent
Answer: c Page: 8 e!el of difficult": #edium
3. ________ can be produced and marketed as a product.
a. 6nformation
b. 9elebrities
c. 5urable goods
d. :rgani-ations
e. Properties
Answer: a Page: ; e!el of difficult": #edium
8. 9harles <e!son of <e!lon obser!ed: %6n the factor", we make cosmetics= in the store, )))))))).&
a. we make profits
b. we challenge competitors
c. we implement ads
d. we sell hope
e. we sell .ualit"
Answer: d Page: ; e!el of difficult": (as"
;. A ________ is someone seeking a response +attention, a purchase, a !ote, a donation, from another
part", called the ))))))))*
a. salesperson, customer
b. fund raiser, contributor
c. politician, !oter
d. marketer, prospect
e. celebrit", audience
Answer: d Page: 1> e!el of difficult": ?ard
$
1>. 6n ________'consumers ma" share a strong need that cannot be satisfied b" an existing product.
a. negati!e demand
b. latent demand
c. declining demand
d. irregular demand
e. non@existent demand
Answer: b Page: 1> e!el of difficult": #edium
11. 6n ________'more customers would like to bu" the product than can be satisfied.
a. latent demand
b. irregular demand
c. o!erfull demand
d. excessi!e
e. negati!e demand
Answer: c Page: 1> e!el of difficult": #edium
1$. #arketers often use the term ________ to co!er !arious groupings of customers.
a. people
b. bu"ing power
c. demographic segment
d. social class position
e. market
Answer: e Page: 1> e!el of difficult": ?ard
1). 9ompanies selling mass consumer goods and ser!ices such as soft drinks, cosmetics, air tra!el, and
athletic shoes and e.uipment spend a great deal of time tr"ing to establish a superior brand image in
markets called ________.
a. business markets
b. global markets
c. consumer markets
d. nonprofit and go!ernmental markets
e. ser!ice markets
14. 6n business markets, ad!ertising can pla" a role, but a stronger role ma" be pla"ed b" the sales force,
________, and the compan"4s reputation for reliabilit" and .ualit".
a. brand image
b. distribution
c. promotion
d. price
e. performance
Answer: d Page: 11 e!el of difficult": ?ard
)
10. Global marketers must decide ________.
a. which countries to enter
b. how to enter each countr" +as an exporter, licenser, 1oint !enture partner, contract manufacturer, or
solo manufacturer,
c. how to adapt their product and ser!ice features to each countr"
d. how to price their products in different countries
e. all of the abo!e
Answer: e Pages: 1121$ e!el of difficult": #edium
1/. #ohan 7awhne" has proposed the concept of ________ to describe a cluster of complementar"
products and ser!ices that are closel" related in the minds of consumers but are spread across a di!erse
set of industries.
a. metamarket
b. !ertical integration
c. hori-ontal integration
d. betamarket
e. s"nchroni-ed marketing
Answer: a Page: 1$ e!el of difficult": ?ard
13. *he ________ promises to lead to more accurate le!els of production, more targeted communications,
and more rele!ant pricing.
a. Age of Globali-ation
b. Age of 5eregulation
c. 6ndustrial Age
d. 6nformation Age
e. Production Age
Answer: d Page: 1) e!el of difficult": #edium
18. #an" countries ha!e ________ industries to create greater competition and growth opportunities.
a. open@market
b. deregulated
c. regulated
d. scientificall" segmented
e. created mass market
Answer: b Page: 1) e!el of difficult": #edium
1;. 9ustomers are showing greater price sensiti!it" in their search for ________.
a. the right product
b. the right ser!ice
c. the right store
d. !alue
e. relationships
Answer: d Page: 14 e!el of difficult": #edium
4
$>. <ising promotion costs and shrinking profit margins are the result of ________.
a. changing technolog"
b. globali-ation
c. deregulation
d. pri!ati-ation
e. heightened competition
Answer: e Page: 14 e!el of difficult": ?ard
$1. 6ndustr" boundaries are blurring at an incredible rate as companies are recogni-ing that new
opportunities lie at the intersection of two or more industries'this is called ________.
a. globali-ation
b. customi-ation
c. industr" con!ergence
d. heightened competition
e. ac.uisition
$$. 6n response to giant retailers and categor" killers, entrepreneurial retailers are building entertainment
into stores with coffee bars, lectures, demonstrations, and performances. *he" are marketing a+n,
________ rather than a product assortment.
a. experience
b. customer !alue
c. customer delight
d. total ser!ice solution
e. intangible benefit+s,
$). 6n response to threats from such companies as A:, Ama-on, Aahoo, eBa", (4*<A5(, and do-ens of
others, established manufacturers and retailers became %brick@and@click& oriented b" adding online
ser!ices to their existing offerings. *his process became known as ________.
a. reintermediation
b. disintermediation
c. e@commerce
d. e@collaboration
e. new market s"nchroni-ation
Answer: a Page: 10 e!el of difficult": ?ard
0
$4. #an" brick@and@click competitors became stronger contenders in the marketplace than the pure@click
firms because the" had a larger pool of resources to work with and ________.
a. better prices
b. greater !alue
c. well@established brand names
d. one@on@one communications
e. direct selling capabilit"
$0. *he ________ is practiced most aggressi!el" with unsought goods, goods that bu"ers normall" do not
think of bu"ing, such as insurance, enc"clopedias, and funeral plots.
a. marketing concept
b. selling concept
c. production concept
d. product concept
e. holistic marketing concept
Answer: b Page: 10 e!el of difficult": #edium
$/. *he ________ concept holds that consumers will fa!or those products that offer the most .ualit",
performance, or inno!ati!e features.
a. product
b. marketing
c. production
d. selling
e. holistic marketing
Answer: a Page: 10 e!el of difficult": (as"
$3. *he ________ concept holds that consumers and businesses, if left alone, will ordinaril" not bu"
enough of the organi-ation4s products.
a. production
b. selling
c. marketing
d. product
e. holistic marketing
$8. 7e!eral scholars ha!e found that companies who embrace the marketing concept achie!e superior
performance. *his was first demonstrated for companies practicing a ________'understanding and
meeting customers4 expressed needs.
a. reacti!e market orientation
b. proacti!e marketing orientation
c. total market orientation
d. impulsi!e market orientation
e. holistic market orientation
Answer: a Page: 1/ e!el of difficult": #edium
$;. According to *heodore e!itt, who drew a percepti!e contrast between the selling and marketing
concepts, ________ is preoccupied with the need to con!ert products into cash.
a. marketing
b. selling
c. direct marketing
d. holistic marketing
e. ser!ice marketing
Answer: b Page: 1/ e!el of difficult": #edium
/
)>. 6n the course of con!erting to a marketing orientation, a compan" faces three hurdles'________.
a. organi-ed resistance, slow learning, and fast forgetting
b. management, customer reaction, competiti!e response
c. decreased profits, increased <C5, additional distribution
d. forecasted demand, increased sales expense, increased in!entor" costs
e. customer focus, profitabilit", slow learning
Answer: a Page: 1/ e!el of difficult": ?ard
)1. 9ompanies that practice both a reacti!e and proacti!e marketing orientation are implementing a
________ and are likel" to be the most successful.
a. total market orientation
b. external focus
c. customer focus
d. competiti!e, customer focus
e. confrontation process
Answer: a Page: 1/ e!el of difficult": #edium
)$. #arketers argue for a ________ in which all functions work together to respond to, ser!e, and satisf"
the customer.
a. cross@functional team orientation
b. collaboration model
c. customer orientation
d. management@dri!en organi-ation
e. total .ualit" model
Answer: c Page: 1/ e!el of difficult": #edium
)). ________ can be seen as the de!elopment, design, and implementation of marketing programs,
processes, and acti!ities that recogni-es the breadth and interdependencies of their effects.
a. Diche marketing
b. ?olistic marketing
c. <elationship marketing
d. 7uppl"@chain marketing
e. 5emand@centered marketing
)4. ________ marketing has the aim of building mutuall" satisf"ing long@term relations with ke" parties
such as customers, suppliers, distributors, and other marketing partners in order to earn and retain their
business.
a. ?olistic
b. 5emand@based
c. 5irect
d. <elationship
e. 7"nthetic
Answer: d Pages: 13218 e!el of difficult": (as"
)0. 9ompanies who form a ________ collect information on each customer4s past transactions,
demographics, ps"chographics, and media and distribution preferences.
a. sales network
b. holistic union
c. marketing network
d. suppl"@chain network
e. integrated network
Answer: c Page: 18 e!el of difficult": ?ard
3
)/. *he abilit" of a compan" to deal with customers one at a time has become practical as a result of
ad!ances in ________, computers, the 6nternet, and database marketing software.
a. impro!ed communication flow
b. information technolog"
c. 1ust@in@time manufacturing
d. factor" customi-ation
e. customer@centered strategies
)3. :ne traditional depiction of marketing acti!ities is in terms of the marketing mix or four Ps. *he four
Ps are characteri-ed as being ________.
a. product, positioning, place, and price
b. product, production, price, and place
c. promotion, place, positioning, and price
d. place, promotion, production, and positioning
e. product, price, promotion, and place
Answer: e Page: 1; e!el of difficult": (as"
8
)8. *he four Ps represent the sellers4 !iew of the marketing tools a!ailable for influencing bu"ers. Erom a
bu"er4s point of !iew, each marketing tool is designed to deli!er a customer benefit. <obert auterborn
suggested that the sellers4 four Ps correspond to the customers4 four 9s. *he four 9s are ________.
a. customer focus, cost, con!enience, and communication
b. customer solution, customer cost, con!enience, and communication
c. con!enience, control, competition, and cost
d. competition, cost, con!enience, and communication
e. categor" control, cost, concept de!elopment, and competition
Answer: b Pages: 1;2$> e!el of difficult": #edium
);. ?olistic marketing incorporates ________, ensuring that e!er"one in the organi-ation embraces
appropriate marketing principles, especiall" senior management.
a. profit ob1ecti!es
b. share of customer
c. internal marketing
d. the marketing mix
e. strategic planning
Answer: c Page: $> e!el of difficult": ?ard
4>. #arketing is not a department so much as a ________.
a. compan" orientation
b. philosoph"
c. function
d. branch of management
e. branch of economics
Answer: a Page: $> e!el of difficult": #edium
41. ?olistic marketing incorporates ________ and understanding broader concerns and the ethical,
en!ironmental, legal, and social context of marketing acti!ities and programs.
a. safe product design
b. cultural marketing
c. social responsibilit" marketing
d. cross@functional teams
e. direct sales policies
Answer: c Page: $> e!el of difficult": #edium
;
4$. *he ________ holds that the organi-ation4s task is to determine the needs, wants, and interests of target
markets and to deli!er the desired satisfactions more effecti!el" and efficientl" than competitors in a
wa" that preser!es or enhances the consumer4s and the societ"4s well@being.
a. customer@centered business
b. focused business model
c. societal marketing concept
d. ethicall" responsible marketing manager
e. production@centered business
Answer: c Page: $$ e!el of difficult": #edium
4). 9ompanies see ________ as an opportunit" to enhance their corporate reputation, raise brand
awareness, increase customer lo"alt", build sales, and increase press co!erage.
a. cause@related marketing
b. brand marketing
c. e.uit" marketing
d. direct marketing
e. recognition marketing
Answer: a Page: $) e!el of difficult": #edium
44. Fhen a customer has a+n, ________ need heGshe wants a car whose operating cost, not its initial price,
is low.
a. stated
b. real
c. unstated
d. delight
e. secret
Answer: b Page: $4 e!el of difficult": ?ard
40. Fhen a customer has a+n, ________ need the customer wants to be seen b" friends as a sa!!"
consumer.
a. real
b. unstated
c. delight
d. secret
e. stated
Answer: d Page: $4 e!el of difficult": ?ard
1>
4/. 5uring market segmentation anal"sis, the marketer identifies which segments present the greatest
opportunit". *hese segments are called ________.
a. target markets
b. primar" markets
c. tertiar" markets
d. demographic markets
e. focused markets
Answer: a Page: $4 e!el of difficult": #edium
43. Eor each target market, the firm de!elops a ________. *he offering is positioned in the minds of the
target bu"ers as deli!ering some central benefit+s,.
a. !alue offering
b. niche offering
c. market offering
d. segment offering
e. social offering
Answer: c Page: $4 e!el of difficult": #edium
48. ________ reflects the percei!ed tangible and intangible benefits and costs to customers.
a. o"alt"
b. 7atisfaction
c. Halue
d. (xpectations
e. 9omparison shopping
4;. 6f a marketer decides to use warehouses, transportation companies, banks, and insurance companies to
facilitate transactions with potential bu"ers, the marketer is using what is called a ________.
a. ser!ice channel
b. distribution channel
c. brand channel
d. relationship channel
e. intermediar" channel
Answer: a Page: $/ e!el of difficult": #edium
0>. ________ includes all the actual and potential ri!al offerings and substitutes that a bu"er might
consider.
a. 9ompetition
b. *he product offering
c. A !alue proposition
d. *he suppl" chain
e. *he marketing en!ironment
Answer: a Page: $/ e!el of difficult": (as"
01. *he ________ includes the immediate actors in!ol!ed in producing, distributing, and promoting the
offering. *he main actors are the compan", suppliers, distributors, dealers, and the target customers.
a. operations en!ironment
b. management en!ironment
c. strategic en!ironment
d. task en!ironment
e. tactical en!ironment
Answer: d Page: $/ e!el of difficult": #edium
11
0$. *he ________ process consists of anal"-ing marketing opportunities= selecting target markets=
designing marketing strategies= de!eloping marketing programs= and managing the marketing effort.
a. marketing planning
b. strategic planning
c. market research
d. opportunit" anal"sis
e. share of customer
0). 5a!id Packard of ?ewlett@Packard once said, %#arketing is far too important to lea!e to ________.&
a. the ad!ertising bo"s
b. uninformed managers
c. no!ices
d. the 9(:
e. the marketing department
Answer: e Page: $3 e!el of difficult": #edium
04. 7ome companies are now switching from being solel" product@centered +with product managers and
product di!isions to manage them, to being more ________ centered.
a. competenc"
b. strateg"
c. marketing
d. customer@segment
e. sales
1$
00. 9ompanies are recogni-ing that much of their market !alue comes from ________, particularl" their
brands, customer base, emplo"ees, distributor and supplier relations, and intellectual capital.
a. !ariable assets
b. the !alue proposition
c. intangible assets
d. tangible assets
e. customer preferences
Answer: c Page: $8 e!el of difficult": (as"
0/. ________ can increasingl" be conducted electronicall", with bu"er and seller seeing each other on
their computer screens in real time.
a. Public relations
b. (@commerce
c. Ad!ertising
d. Personal selling
e. #ass marketing
Answer: d Page: $8 e!el of difficult": #edium
03. *op management is going be"ond sales re!enue alone to examine the marketing scorecard to interpret
what is happening to ________.
a. market share
b. customer loss rate
c. customer satisfaction
d. product .ualit"
e. all of the abo!e
Answer: e Page: $; e!el of difficult": #edium
08. At the heart of an" marketing program is the ________'the firm4s tangible offering to the market.
a. ser!ice offer
b. product
c. sales support team
d. packaging
e. auxiliar" offer
Answer: b Page: )> e!el of difficult": #edium
0;. ________ acti!ities are the means b" which firms attempt to inform, persuade, and remind consumers
'directl" or indirectl"'about the brands the" sell.
a. 9onsumer beha!ior
b. #arket segmentation
c. #arketing research
d. #arketing communication
e. Dew product de!elopment
Answer: d Page: )> e!el of acti!it": #edium
/>. #arketing e!aluation and ________ processes are necessar" to understand the efficienc" and
effecti!eness of marketing acti!ities and how both could be impro!ed.
a. control
b. anal"sis
c. measurement
d. feedback
e. consumer beha!ior
Answer: a Page: )> e!el of difficult": #edium
1)
Chapter +:
Gathering Inf!r,ati!n an- S(anning the En.ir!n,ent
M$'tip'e Ch!i(e
1. *he ma1or responsibilit" for identif"ing significant marketplace changes falls to the ________.
a. I.7. 5epartment of abor
b. compan"4s marketers
c. American #arketing Association
d. industr" lobb" groups found in Fashington, 5.9.
e. marketing research industr"
Answer: b Page: 3$ e!el of difficult": (as"
$. #arketers ha!e extensi!e information about how consumption patterns !ar" across countries. :n a per
capita basis within Festern (urope, the ________ smoke the most cigarettes.
a. 7wiss
b. Greeks
c. 6rish
d. Austrians
e. Erench
Answer: d Page: 3$ e!el of difficult": ?ard
). All of the following .uestions (J9(P* ________, would be considered to be forms of information
needs probes.
a. Fhat decisions do "ou regularl" makeK
b. Fhat information do "ou need to make decisionsK
c. Fhat data anal"sis programs would "ou wantK
d. Fhat maga-ines and trade reports would "ou like to see on a regular basisK
e. Fhat products would be most closel" matched to consumer needsK
Answer: e Page: 3) e!el of difficult": #edium
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4. ________ consists of people, e.uipment, and procedures to gather, sort, anal"-e, e!aluate, and
distribute needed, timel", and accurate information to marketing decision makers.
a. A marketing information s"stem
b. A marketing research s"stem
c. A marketing intelligence s"stem
d. A promotional campaign
e. A marketing database
Answer: a Page: 3) e!el of difficult": #edium
0. *he compan"4s marketing information s"stem should be a cross between what managers think the"
need, what managers reall" need, and ________.
a. what the marketing research department is able to do
b. what consumers are willing to share
c. what the competition is doing
d. what is acceptable industr" practice
e. what is economicall" feasible
/. #arketing managers rel" on internal reports. B" anal"-ing this information, the" can spot ________.
a. micro@markets
b. opportunities and problems
c. macro@markets
d. competiti!e strategies
e. consumer demographic units
Answer: b Page: 3) e!el of difficult": (as"
3. *he heart of the internal records s"stem is the ________.
a. database
b. asset ac.uisition process
c. order@to@pa"ment c"cle
d. ser!ice consideration
e. information li.uidit" ratio
Answer: c Page: 3) e!el of difficult": ?ard
8. Fhen a marketer %mines& his or her compan"4s database, fresh insights can be gained into neglected
customer segments, ________, and other useful information.
a. recent customer trends
b. long@term competiti!e trends
c. possible new in!entions
d. possible new technologies
e. new primar" data possibilities
;. *he internal records s"stem supplies results data, but the marketing intelligence s"stem supplies
________ data.
a. concurrent
b. secondar"
c. research
d. happenings
e. premium
1>. A ________ is a set of procedures and sources managers use to obtain e!er"da" information about
de!elopments in the marketing en!ironment.
a. marketing research s"stem
10
b. marketing information s"stem
c. product management s"stem
d. marketing intelligence s"stem
e. !ertical s"stem
11. A compan" can take se!eral steps to impro!e the .ualit" of its marketing intelligence. 6f the compan"
purchases competiti!e products for stud", attends open houses and trade shows, and reads competitors4
published reports and stockholder information, the compan" is using ________ to impro!e the .ualit"
of its marketing intelligence.
a. sales force surrogates
b. intermediaries
c. external networks
d. ad!isor" panels
e. customer feedback s"stems
Answer: c Pages: 34230 e!el of difficult": ?ard
1$. All of the following would be considered to be steps to impro!e the .ualit" of marketing intelligence in
a compan" (J9(P* ________.
a. a compan" can train and moti!ate the sales force to spot and report new de!elopments
b. a compan" can use guerrilla tactics such as going through a competitor4s trash
c. a compan" can moti!ate intermediaries to pass along important information
d. a compan" can network externall"
e. a compan" can purchase information from outside suppliers
Answer: b Pages: 3423/ e!el of difficult": (as"
1/
1). *he $>>> I.7. census pro!ides an in@depth look at the population swings, demographic groups,
regional migrations, and changing famil" structure of $81L million people. Fhich of the following
steps to impro!e the .ualit" of compan" marketing intelligence s"stem would be most closel"
associated the abo!e illustrationK
a. A compan" can purchase information from outside suppliers.
b. A compan" can take ad!antage of go!ernment data sources.
c. A compan" can use online customer feedback s"stems to collect data.
d. A compan" can network externall".
e. A compan" can use its sales force to collect and report data.
Answer: b Page: 3/ e!el of difficult": (as"
14. *here are four main wa"s that marketers can find rele!ant online information on competitors4 products
and weaknesses, and summar" comments and o!erall performance rating of a product, ser!ice, or
supplier. ________ is+are, a t"pe of site that is concentrated in financial ser!ices and high@tech
products that re.uire professional knowledge.
a. 6ndependent customer goods and ser!ice re!iews
b. 5istributor or sales agent feedback sites
c. 9ombo@sites offering customer re!iews and expert opinions
d. 9ustomer complaint sites
e. 7hopping bot ser!ice sites
10. A ________ is %unpredictable, short@li!ed, and without social, economic, and political significance.&
a. fad
b. fashion
c. trend
d. megatrend
e. st"le
1/. A ________ is a direction or se.uence of e!ents that has some momentum and durabilit"= the
shape of the future is re!ealed and man" opportunities are pro!ided.
a. fad
b. fashion
c. trend
d. megatrend
e. st"le
13
13. ________ ha!e been described as %large social, economic, political and technological changes
MthatN are slow to form, and once in place, the" influence us for some time'between se!en and ten
"ears, or longer.
a. Eads
b. Eashions
c. *rends
d. #egatrends
e. 7t"les
18. Fhich of the following minorit" groups in the Inited 7tates has been associated with one of the ten
megatrends shaping the consumer landscapeK
a. African Americans
b. Asian Americans
c. (uropean Americans
d. ?ispanic Americans
e. #iddle (astern Americans
1;. *he beginning of the new centur" brought a series of new challenges. All of the following would
be considered to be among those challenges (J9(P* ________.
a. a deterioration of inno!ati!e ideas
b. steep decline of the stock market
c. increasing unemplo"ment
d. corporate scandals
e. the rise of terrorism
$>. Fith the rapidl" changing global picture, the firm must monitor six ma1or forces. All of the
following would be among those forces (J9(P* ________.
a. demographic
b. economic
c. social@cultural
d. natural
e. promotional
Answer: e Page: 38 e!el of difficult": (as"
$1. *he main demographic force that marketers monitor is+are, ________.
a. suppliers
b. competitors
c. communication +such as ad!ertising,
d. go!ernment reports dealing with birth rates
e. population
Answer: e Page: 3; e!el of difficult": (as"
$$. *he population explosion has been a source of ma1or concern. Inchecked population growth and
consumption could e!entuall" result in all of the following (J9(P* ________.
18
a. insufficient food suppl"
b. depletion of ke" minerals
c. o!ercrowding
d. restrictions on competition
e. pollution
Answer: d Page: 3; e!el of difficult": (as"
$). :ne impact of explosi!e population growth is illustrated b" the case of 9hina. *he 9hinese
go!ernment passed regulations limiting families to one child. :ne conse.uence of these regulations is
that ________.
a. the children are so fussed o!er and spoiled that the" become %little emperors&
b. school enrollments are dropping
c. the fledgling automoti!e business in 9hina will not ha!e customers in a few "ears
d. open rebellion is being preached
e. %child@oriented businesses& ha!e few customers
Answer: a Page: 8> e!el of difficult": #edium
$4. A significant fact about population growth and population shifts is that in $>>4 or $>>0, ________.
a. the "outh market will exceed that of the adult market
b. people o!er the age of /> will outnumber those under fi!e "ears of age
c. bab" boomers will be eclipsed b" Gen J "oung adults
d. most age group segments will be about e.ual
e. Gen A "oung adults will surpass the bab" boomers as the largest age segment
Answer: b Page: 8> e!el of difficult": ?ard
$0. Fhich of the following age groups is thought to control three@.uarters of the countr"4s wealthK
a. >2$> age segment
b. />L age segment
c. $>2)> age segment
d. )>24> age segment
e. 4>L age segment
1;
$/. At one time the Inited 7tates was called a %melting pot& societ" because of the number of different
cultures that were integrated into the I.7. culture. *oda", the Inited 7tates is described as a ________
societ" because man" ethnic groups are maintaining their ethnic differences, neighborhoods, and
cultures.
a. %boiling pot&
b. %salad bowl&
c. %banana split&
d. %doubled up&
e. %non@communicati!e&
$3. According to the $>>> census, the I.7. population of $3/.$ million was 3$ percent white and
________ percent African American. *he remainder consisted of ?ispanic Americans and other
minorities.
a. $>
b. 18
c. 10
d. 1)
e. 11
$8. 5i!ersit" goes be"ond ethnic and racial markets. #ore than ________ million Americans ha!e
disabilities, and the" constitute a market for home deli!er" companies +and others,.
a. 0>
b. 4>
c. )>
d. $>
e. 1>
Answer: a Page: 8) e!el of difficult": ?ard
$;. Fhich of the following countries is known for ha!ing ;; percent of its population literateK
a. (ngland
b. German"
c. Erance
d. Inited 7tates
e. Oapan
$>
)>. *he ________ household consists of a husband, wife, and children +and sometimes grandparents,.
a. %traditional&
b. %extended&
c. %di!ersit"&
d. %modern&
e. %re!ised&
Answer: a Page: 8) e!el of difficult": #edium
)1. #arried couple households'the dominant cohort since the formulation of the Inited 7tates'has
slipped from nearl" 8> percent in the 1;0>s to around ________ percent toda".
a. 3>
b. />
c. 0>
d. 4>
e. )0
Answer: c Page: 8) e!el of difficult": ?ard
)$. *he twent"@first centur" saw ________ markets grow more rapidl" again due to a higher birth rate, a
lower death rate, and rapid growth from foreign immigration.
a. suburban
b. urban
c. rural
d. coastal
e. secondar"
)). *he mo!ement b" population to the ________ has lessened the demand for warm clothing and home
heating e.uipment and increased demand for air conditioning.
a. Grainbelt
b. Pacific Dorthwest
c. 7unbelt
d. #id@9oastal areas
e. ?eartland
Answer: c Page: 84 e!el of difficult": (as"
$1
)4. #arketers look at where consumers are gathering. Almost one in ________ people o!er the age of fi!e
+1$> million, mo!ed at least one time between 1;;0 and $>>>, according to a 9ensus $>>> brief.
a. two
b. three
c. four
d. fi!e
e. ten
Answer: a Page: 85 Level of difficulty: Hard

)0. 6n which of the following economies would we expect to find few opportunities for marketersK
a. 6ndustriali-ing economies.
b. and@locked economies.
c. <aw@material@exporting economies.
d. 6ndustrial economies.
e. 7ubsistence economies.
Answer: e Page: 8/ e!el of difficult": (as"
)/. According to information presented in the text, which of the following countries is surprisingl" a !er"
good market for amborghini automobiles +costing more than P10>,>>>, because of the number of
wealth" families that can afford expensi!e cars.
a. Greece
b. 7wit-erland
c. ?olland
d. <ussia
e. Portugal
Answer: e Page: 8/ e!el of difficult": ?ard
)3. :!er the past three decades in the Inited 7tates, the rich ha!e grown richer and the middle class has
________.
a. sta"ed about the same
b. shrunk
c. increased slightl"
d. matched the rich in terms of relati!e growth
e. been ignored because of problems with the poorer classes
Answer: b Page: 8/ e!el of difficult": #edium
)8. ________ shapes the beliefs, !alues, and norms that largel" define the tastes and preferences.
a. #arketing
b. *he mass media
c. Go!ernment
d. Production inno!ation and engineering
e. 7ociet"
Answer: e Page: 83 e!el of difficult": #edium
);. 6f a consumer li!es the lifest"le of a %pleasure seeker& or goes on a %self@reali-ation& .uest, he or she is
expressing what is called ________.
a. !iews of others
b. !iews of societ"
c. !iews of themsel!es
d. !iews of organi-ations
e. !iews of the uni!erse
Answer: c Pages: 83288 e!el of difficult": (as"
$$
4>. According to the information found in the social@cultural en!ironment, with respect to views of others,
________ are considered to be things that allow people who are alone to feel the" are not +e.g.,
tele!ision, home !ideo games, and chat rooms on the 6nternet,.
a. social surrogates
b. subliminal fantasies
c. relationship a!oidance
d. primar" products
e. secondar" products
41. *oda", corporations need to make sure that the" are good corporate citi-ens and that their
consumer messages are honest. 7uch a !iew would be consistent with which of the following !iewsK
a. Hiews of others.
b. Hiews of organi-ations.
c. Hiews of themsel!es.
d. Hiews of the uni!erse.
e. Hiews of societ".
Answer: b Page: 88 e!el of difficult": (as"
4$. People !ar" in their attitudes toward their societ". ________ usuall" li!e more frugall", dri!e smaller
cars, and wear simpler clothing.
a. #akers
b. (scapers
c. 7eekers
d. 9hangers
e. 5e!elopers
$)
4). People !ar" in their attitudes toward societ" and react accordingl". ________ are a ma1or market for
mo!ies, music, surfing, and camping.
a. #akers
b. Preser!ers
c. (scapers
d. 9hangers
e. 5e!elopers
44. All of the following ha!e been cited b" the text as being among Americans4 core !alues (J9(P*
________.
a. the" belie!e in work
b. the" belie!e in getting married
c. the" belie!e in gi!ing to charit"
d. the" belie!e in being honest
e. the" belie!e in sexual permissi!eness
Answer: e Page: 88 e!el of difficult": (as"
40. Fhich of the following would be the best illustration of a secondar" belief or !alueK
a. Belief in work.
b. Belief in gi!ing to charit".
c. Belief in getting married.
d. Belief in getting married earl".
e. Belief in being honest.
4/. Fhich of the following is b" far the most popular American leisure acti!it" in that it is preferred b" 0;
percent of adults who participate in such acti!itiesK
a. Gardening.
b. Falking for exercise.
c. 7wimming.
d. Photograph".
e. Oogging or running.
Answer: b Page: 8; e!el of difficult": #edium
43. (ach societ" contains ________, groups with shared !alues emerging from their special life
experiences or circumstances.
a. demographic segments
b. cli.ues
c. consumer bundles
d. subcultures
e. beha!ioral niches
Answer: d Page: 8; e!el of difficult": #edium
$4
48. Fhich of the following would be the best illustration of a subcultureK
a. A softball team.
b. A uni!ersit" alumni association.
c. *eenagers.
d. A Bo" 7cout troop.
e. Ere.uent fl"ers.
Answer: c Page: 8; e!el of difficult": #edium
4;. All of the following (J9(P* ________ ha!e been found to influence "oung people toda" and cause a
shift of secondar" cores !alues for this group.
a. I$4s Bono.
b. (l!is Presle".
c. *he DBA4s eBron Oames.
d. Golf4s *iger Foods.
e. 7kateboarder *on" ?awk.
Answer: b Page: 8; e!el of difficult": (as"
0>. Although core !alues are fairl" persistent, cultural swings do take place. ________ caused such a swing
in the 1;/>s.
a. Eord #otor 9ompan"
b. George #cGo!ern
c. G.6. Ooe action characters
d. *he infomercial
e. *he Beatles
Answer: e Page: 8; e!el of difficult": #edium
01. #arketers need to be aware of threats and opportunities associated with four trends in the natural
en!ironment. All of the following are among those trends (J9(P* ________.
a. the shortage of raw materials
b. the increased cost of energ"
c. near ;> percent corporate support for %green causes&
d. increased pollution le!els
e. the changing role of go!ernments
Answer: c Page: ;> e!el of difficult": (as"
0$. Fith respect to the shortage of raw materials, air and water are classified as ________ resources.
?owe!er, as we know, problems are beginning to plague both our air and water .ualit".
a. infinite
b. near finite
c. finite renewable
d. finite nonrenewable
e. absolute
Answer: a Page: ;> e!el of difficult": #edium
$0
0). :ne finite nonrenewable resource, ________, has created serious problems for the world econom".
Because of anticipated shortages, in!estment and commodit" markets ha!e had wild swings.
a. water
b. air
c. sugar
d. coffee
e. oil
Answer: e Page: ;> e!el of difficult": (as"
04. Erom a branding perspecti!e, %green marketing& programs ha!e not been entirel" successful. ________
has been cited as one of the obstacles that must be o!ercome for %green marketing& programs to be
more successful.
a. :!erexposure and lack of credibilit"
b. ?igh cost
c. Poor promotions
d. <esistance b" the "outh segment in the marketplace
e. ack of support b" go!ernmental agencies and concerns
Answer: a Page: ;1 e!el of difficult": ?ard
00. Fhich of the following countries is noted for their %green mo!ement& and support within its
go!ernment for en!ironmental .ualit" enhancementK
a. #exico
b. 9hina
c. German"
d. (ngland
e. 6tal"
Answer: c Page: ;1e!el of difficult": #edium
0/. *he marketer should monitor the following trends in technolog", (J9(P* ________, if progress is
to be made in business.
a. the pace of change
b. the difficulties found in sharing information
c. the opportunities for inno!ation
d. !ar"ing <C5 budgets
e. increased regulation
Answer: b Page: ;$ e!el of difficult": ?ard
03. According to some industr" anal"sts and in!entors, ________ will e!entuall" eclipse the P9 as our
most important technological de!ice.
a. iPod
b. ?5*H
c. holographic tele!ision
d. the mobile phone
e. solar@powered car
Answer: d Page: ;$ e!el of difficult": #edium
08. All of the following will most likel" be among the ad!antages for a societ" that embraces
telecommuting as an emplo"mentGcommunication alternati!e (J9(P* ________.
a. reduction of auto pollution
b. bringing the famil" closer together
c. increased bonuses and compensation perks
d. creating more home@centered shopping
e. entertainment centered on the home en!ironment
Answer: c Page: ;$ e!el of difficult": #edium
$/
0;. ________ legislation has as its purposes to protect companies from unfair competition, to protect
consumers from unfair business practices, and to protect the interests of societ" from unbridled
business beha!ior.
a. Business
b. 9onsumer
c. Bi@partisan
d. Acti!ist
e. Global
Answer: a Page: ;4 e!el of difficult": (as"
/>. An important force affecting business is the ________'a mo!ement of citi-ens and go!ernment
organi-ed to strengthen the rights and powers of bu"ers in relation to sellers.
a. lobb"ist mo!ement
b. consumerist mo!ement
c. en!ironmental mo!ement
d. self@rights mo!ement
e. ethical reform mo!ement
Answer: b Page: ;0 e!el of difficult": #edium
$3
Chapter "1: Tapping int! G'!/a' Maret#
M$'tip'e Ch!i(e
1. <ed Bull has gained ________ of the worldwide energ" drink market b" skillfull" connecting with
global "outh.
a. 3> percent
b. 8> percent
c. /> percent
d. 0> percent
e. ;> percent
Answer: a Page: //3 e!el of difficult": #edium
$. <ed Bull built bu-- about the product through its ________.
a. %bu-- marketing program&
b. %in program&
c. %marketing program&
d. %seeding program&
e. %ad!ertising campaign&
Answer: d Page: //3 e!el of difficult": #edium
). A global industr" is defined as ________.
a. an industr" in which the strategic positions of competitors are fundamentall"
affected b" their o!erall global positions
b. an industr" that operates in more than one countr" and captures <C5, marketing,
and other financial ad!antages in its costs and reputation.
c. an industr" that operates in more than one countr" and has a strategic position in
man" countries
d. a firm that operates in more than one countr" and has a sales and marketing staff
in those countries
e. an industr" that has strategic positions in man" countries but is not affected b"
competition
Answer: a Page: //8 e!el of difficult": #edium
$8
4. A global firm is one that ________.
a. where the strategic positions of competitors are fundamentall" affected b" their
o!erall global positions
b. operates in more than one countr" and captures <C5, marketing, and other
financial ad!antages in its costs and reputation
c. operates in more than one countr" and has a sales and marketing staff in those
countries
d. operates in more than one countr" and has a sales and marketing staff in those
countries de!eloping
e. has strategic positions in man" countries but is not affected b" competition
researching
Answer: b Page: //8 e!el of difficult": #edium
0. 6nternational trade in $>>) accounted for o!er ________ of I.7. G5P up from 11
percent in 1;3>.
a. one@third
b. one@eighth
c. one@half
d. one@.uarter
e. 18 percent
Answer: d Page: //8 e!el of difficult": (as"
/. Global firms plan, operate, and ________ their acti!ities on a worldwide basis.
a. produce
b. coordinate
c. distribute
d. price
e. ser!ice
Answer: b Page: //8 e!el of difficult": (as"
3. *he ma1or decisions in international marketing include which of the following stepsK
a. 5eciding whether to go abroad.
b. 5eciding which markets to enter.
c. 5eciding how to enter the market.
d. 5eciding on the marketing program.
e. All of the abo!e.
Answer: e Page: //; e!el of difficult": #edium
8. *he internationali-ation process has four stages. *hese stages are ________.
a. no regular export acti!ities
b. export !ia independent representati!es +agents,
c. establishment of one or more sales subsidiaries
d. establishment of production facilities abroad
e. all are part of the internationali-ation process
Answer: e Page: /3> e!el of difficult": #edium
$;
;. #ost firms work with an ________ and enter a nearb" or similar countr".
a. independent agent
b. contractual export department
c. importGexport department
d. franchisee
e. management contract
Answer: a Page: /3> e!el of difficult": (as"
1>. A %waterfall& approach to international marketing is defined as ________.
a. countries that are graduall" entered se.uentiall"
b. countries in which the demand for the product is greatest is entered first
c. countries in which the demand for the product is greatest is entered last
d. countries in which the suppl" of raw material is greatest is entered first
e. countries are entered based upon ease of entr"
Answer: a Page: /31 e!el of difficult": #edium
11. A %sprinkler& approach to international marketing is defined as ________.
a. countries that are entered when timing is right
b. countries that are graduall" entered se.uentiall"
c. countries in which the suppl" of raw material is greatest is entered first
d. countries in which the demand for the product is greatest is entered first
e. man" countries are entered simultaneousl" within a limited period of time
Answer: e Page: /31 e!el of difficult": #edium
1$. *he de!eloped nations and the prosperous parts of de!eloping nations account for less
than ________ of the world4s population.
a. 1> percent
b. 10 percent
c. $> percent
d. $0 percent
e. )> percent
Answer: b Page: /31 e!el of difficult": (as"
1). #arketers must change their con!entional marketing to sell their products to
de!eloping countries. :ne of the changes that marketers can make is to ________.
a. reduce the price of the product but increase the packaging si-e
b. reduce the si-e but keep the pricing the same
c. reduce the price of the product
d. reduce the si-e and price of the packaging
e. increase the price and the packaging si-e because these countries ha!e ne!er seen
the product before
Answer: d Page: /31 e!el of difficult": #edium
)>
14. Eactors that influence the %attracti!eness& of a countr" to enter include which of the
followingK
a. product, geograph", income and population, political climate, and other factors
b. product, geograph", income, climate, and source of income
c. population, incomes, competition, and political climate
d. incomes, profit potentials, competition, and climate
e. incomes, families, competition, and cultural differences
10. <egional economic integration is defined as ________.
a. agreements between indi!idual firms for the sake of commerce
b. trading agreements between indi!idual countries
c. trading agreements between indi!idual firms
d. trading agreements between countries and firms
e. trading agreements between blocs of countries
Answer: e Page: /3) e!el of difficult": (as"
1/. *he (uropean Inion founded in 1;03 added ________ in #a" $>>4 bringing its total membership to
$0 countries.
a. 1> countries
b. 0 countries
c. $> countries
d. / countries
e. 4 countries
Answer: a Page: /3) e!el of difficult": (as"
13. DAE*A established a free trade -one between what three countriesK
a. 9anada, #exico, and 7outh America
b. 9anada, #exico, and Peru
c. #exico, 7outh America, and the Inited 7tates
d. 9anada, #exico, and the Inited 7tates
e. 9anada, #exico, and Oapan
Answer: d Page: /3) e!el of difficult": #edium
18. #(<9:7I is a free trade -one linking which of the following 7outh American
countriesK
a. #exico, Oapan, Bra-il, and Paragua"
b. #exico, Bra-il, and Paragua"
c. Bra-il, Argentina, and Paragua"
d. 9anada, Bra-il, and Paragua"
e. Bra-il, Argentina, Paragua", and Irugua"
Answer: e Page: /3) e!el of difficult": #edium
)1
1;. *he fi!e modes of entr" into foreign markets generall" flow b" increasing
commitment, risk, control, and profit potential as follows ________.
a. indirect exporting, direct exporting, licensing, 1oint !entures, and direct in!estment
b. direct in!estment, 1oint !entures, licensing, direct exporting, and indirect
exporting.
c. direct in!estment, 1oint !entures, and licensing
d. direct in!estment, 1oint !entures, licensing, and indirect exporting
e. none of the abo!e
Answer: a Page: /34 e!el of difficult": ?ard
$>. 6n choosing which countries to in!est in, companies sometimes choose ps"chic
proximit" to their own countr". Ps"chic proximit" can best be defined as ________.
a. countries close to the %host& countr" in which the compan" feels comfortable with
the language, laws, and culture
b. countries that %mimic& the host countr" in terms of language and culture
c. countries that the host countr"4s management team ha!e !isited
d. countries close to the %host& countr" in which the compan" feels that the" can
infiltrate .uickl" and profitable
e. countries close to the %host& countr" in which the compan" can easil" transport
their products
$1. *he normal wa" to get in!ol!ed in an international market is through exporting.
:ccasional exporting is defined as ________.
a. when the compan" carries on exporting acti!ities on the behalf of others
b. when the compan" makes a commitment to expand into particular markets
c. when the compan" works through independent agents
d. when the compan" hires domestic@based agents to negotiate foreign purchases
e. a passi!e le!el of in!ol!ement in which the compan" exports its products from
time to time
$$. Acti!e exporting takes place when the compan" ________ to expand into a particular market.
a. forms a %skunk& group
b. forms an export department
c. hires an agent
d. makes an effort
e. makes a commitment
Answer: e Page: /34 e!el of difficult": (as"
)$
$). 5omestic@based export merchants ________.
a. bu" the manufacturer4s products and then sell them abroad
b. bu" the manufacturer4s products then sell them in the host countr"
c. bu" the manufacturer4s products then fine agents and customers in foreign
countries
d. seek and negotiate foreign purchases
e. carr" on exporting acti!ities on behalf of se!eral producers
$4. 5omestic based export agents perform a !aluable ser!ice for the companies seeking to enter foreign markets. *he primar"
function of these agents is to ________.
a. carr" on exporting acti!ities on behalf of se!eral producers
b. bu" the manufacturer4s products and then sell them abroad
c. bu" the manufacturer4s products then sell them in the host countr"
d. seek and negotiate foreign purchases and are paid a commission on those sales
e. export products to foreign countries
$0. 9ompan"4s prefer to enter a countr" that ranks high on market attracti!eness, low in
market risks and ________.
a. in which it would possesses a competiti!e ad!antage
b. turn a .uick profit
c. able to dominate its foreign competitors through superior product design and
performance
d. gain a dominate market share within one "ear of exporting
e. increase its foreign market share b" 0> percent in one "ear
$/. 6ndirect export has two ad!antages for the firm. Eirst in in!ol!es less in!estment for
the firm and secondl" it ________.
a. in!ol!es less paperwork
b. in!ol!es less intrusion b" the go!ernment
c. in!ol!es less risk
d. in!ol!es less people to manage the process
e. in!ol!es less products and product lines
Answer: c Page: /30 e!el of difficult": #edium
$3. A compan" can carr" on direct exporting in se!eral wa"s. *hese include domestic@
based export department or di!ision, o!erseas sales branch or subsidiar", tra!eling
export sales representati!es, and ________.
a. foreign@based distributors or agents
b. marketing departments based in the foreign countr"
c. export merchants in foreign countries
d. export management companies
))
$8. According to the text, 7haper 6mage recei!es more than ________ of its online
business form o!erseas customers.
a. 10 percent
b. )> percent
c. $0 percent
d. 4> percent
e. 1> percent
Answer: c Page: /30 e!el of difficult": ?ard
$;. %Going abroad& using the 6nternet has its challenges. :ne of the challenges that a
global marketer ma" run up against when using the Feb are ________.
a. cultural restrictions
b. language barriers
c. pricing procedures
d. monetar" exchanges
e. logistical limitations
)>. icensing is a simple wa" to become in!ol!ed in international marketing. 6n
licensing, the licensor issues a license to a foreign compan" to use a process,
trademark, patent, or trade secret for a+n, ________.
a. limited period of time
b. fee or ro"alt"
c. exchange of information or propriet" information
d. exchange for access to the market place
e. exchange for %their& process, trademark, patent, or secret
Answer: b Page: /3/ e!el of difficult": (as"
)1. 9ompanies such as #arriott and ?"att sell a !ariation of the licensing agreement
called ________ to the owners of foreign hotels to manage these businesses for them
in foreign countries.
a. contract manufacturing
b. management contracts
c. franchising
d. hotel management licensing
Answer: b Page: /3/ e!el of difficult": #edium
)4
)$. 6n ________, the firm hires local manufacturers to produce the product. *his gi!es the
compan" less control o!er the manufacturing process and loss of profits of the
manufacturing efficiencies.
a. contract manufacturing
b. management contracts
c. licensing
d. franchising
Answer: a Page: /3/ e!el of difficult": (as"
)). A compan" can enter a foreign market through ________, which is a complete form
of licensing in which the compan" offers a complete brand concept and operating
s"stem designed to ensure that the ________ operates according to the re.uirements
of the licensor.
a. contract manufacturesGlicensor
b. contract managementGfirm
c. management contractsGfirm
d. 1oint !entureGfirm
e. franchisingGfranchisor
Answer: e Page: /3/ e!el of difficult": #edium
)4. *he definition of a 1oint !enture compan" is one ________.
a. in which foreign in!entors 1oin with local in!estors where the" share ownerships
and control
b. in which two people or more own the firm 1ointl"
c. where foreign in!estors 1oin with others to own the firm
d. where ownership b" local and distant in!estors in share ownership of a franchise
e. where ownership is b" in!estors of foreign firms
Answer: a Page: /3/ e!el of difficult": #edium
)0. A 1oint !enture ma" be necessar" or desirable for economic or political reasons.
Additionall", a foreign firm might lack the ________, or managerial resources to
undertake the !enture alone.
a. resource, competenc"
b. financial, ph"sical
c. financial, willingness
d. political, financial
e. political, competenc"
Answer: b Page: /33 e!el of difficult": #edium
)0
)/. 6n an adapted marketing mix, the producers4 ________ the marketing program to each
target market.
a. reduce the importance of each element of the marketing program to ad1ust for cost
differential between countries
b. decide on which element of the marketing mix to changeGcountr"Gtarget market
prior to entering the countr"
c. adapt the communications message to the host countr"
d. change onl" one element of the marketing mixGcountr"
e. ad1ust
)3. 6nternational companies must decide on how much to adapt their marketing strateg"
to local conditions. At one extreme are companies that use a globall" standardi-ed
marketing mix worldwide. A standardi-ed marketing mix includes ________.
a. a concentric strateg" which includes the product, integrated marketing
communications mix, and distribution strateg"
b. standardi-ation of the product, communication, and distribution channels
promising lowest costs.
c. changes onl" to the product keeping distribution channels and marketing
communications consistent across countries
d. changing onl" the distribution channels to accommodate the host countr"
e. changes onl" to the product and communication message
)8. *he ultimate form of foreign in!ol!ement is direct ownership of foreign@based
assembl" or manufacturing facilities. :ne of the ad!antages of direct ownership can
include economies of scale, creating 1obs in the host countr", de!eloping deeper
relations with local suppliers etcetera and the firm ________.
a. retains full control o!er its in!estment
b. re!iews global outreach pro1ections
c. redefines the business concept
d. re!iews the successes from e@commerce
e. recei!es no disad!antages to direct in!estment
);. ?ofstede identifies four cultural dimensions that can differentiate countries. *hese are
indi!idualism !ersus collecti!ism, high !ersus low power distances, masculine !ersus
feminine, and ________.
a. customer relationship management !ersus power distances
b. strategic management !ersus marketing management
c. weak !ersus strong uncertaint" a!oidance
d. total .ualit" management !ersus O6* deli!eries
e. marketing management !ersus customer relationships
Answer: c Page: /33 e!el of difficult": #edium
)/
4>. 7traight extension of the product means ________.
a. introducing the product to the foreign market without an" changes to the product.
b. introducing the product to the foreign market without ma1or changes to the
product
c. introducing the product to the foreign market with ma1or changes to the product
d. introducing the product to the foreign market with no ma1or marketing program
e. not introducing the product to the foreign market until changes ha!e been made

41. An ad!antage of global marketing is that it can lower marketing costs, has economies
of scale in production and distribution, can produce consistenc" in brand image, has
the abilit" to le!erage good ideas .uickl" and efficientl", and ________.
a. is easier to adapt to foreign countries
b. allows for the same message to be used worldwide
c. allows for indi!idual countries to add their specific needs to the message
d. is easier for corporations to e!aluate the marketing message
e. allows for uniformit" of marketing practices
Answer: e Page: /38 e!el of difficult": ?ard
4$. Product adaptation in!ol!es ________.
a. altering the product to meet local conditions or preferences
b. altering the product to meet minimum acceptable standards
c. changing the product periodicall"
d. upgrading the product on a periodic basis
e. changing the product to meet competition
Answer: a Page: /3; e!el of difficult": #edium
4). A firm can successful introduce four !ersions of its products into a foreign countr" or
a firm ma" select one of these for inclusion. *hese !ersions include ________.
a. customer !ersion, regional !ersion, and cit" !ersion
b. customer !ersion, countr" !ersion, and retailer !ersion
c. regional !ersion, countr" !ersion, cit" !ersion, and retailer !ersion
d. customer !ersion, regional !ersion, cit" !ersion, and retailer !ersion
e. regional !ersion, countr" !ersion, cit" !ersion, and market !ersions
Answer: c Pages: /8>2/81 e!el of difficult": (as"
44. Product in!ention consists of creating something new. Backward in!ention is
reintroducing earlier product forms that are well adapted to a foreign countr"4s needs.
Eorward in!ention is ________.
a. creating a new product to meet a need in another countr"
b. creating a new product to meet the need in the host countr"
c. understanding the differences between host and foreign countr" markets
d. increasing the control o!er the de!elopment of new products
e. in!enting something that "et has a %market&
)3
40. 9ompanies can run the same marketing communications programs as used in the
home market or change them for each local market, a process called ________.
a. product communications
b. brand communications
c. dual adaptation
d. marketing communications
e. communication adaptation
Answer: e Page: /8$ e!el of difficult": #edium
4/. #an" multinationals are plagued b" the gra" market problem. *he gra" market
consists of ________.
a. the marketing of products to older consumers
b. branded products di!erted from normal distribution channels in the countr" of
product origin
c. branded products di!erted from one countr" to another
d. products being repackaged from the intended countr" to a di!erted countr"
e. products not ha!ing full warranties b" the manufacturer
Answer: b Page: /8$ e!el of difficult": #edium
43. 6f a compan" adapts or changes both the product and the communications, the
compan" engages in a process called ________.
a. straight extension
b. marketing communication
c. product adaptation
d. dual adaptation
e. full adaptation
Answer: d Page: /8$ e!el of difficult": #edium
48. *he use of media re.uires international adaptation because media a!ailabilit" !aries from countr" to countr". Dorwa",
Belgium, and Erance do not allow cigarettes and alcohol to be ad!ertised on *B. Austria and 6tal" regulate *H ad!ertising
________.
a. between the hours of ; p.m. and / a.m.
b. to children
c. for those under the age of ma1orit"
d. regarding content and clarit"
e. using women in ad!ertising
Answer: b Page: /8) e!el of difficult": #edium
)8
4;. A Gucci bag sells for P1$> in 6tal" and P$4> in the Inited 7tates. *his is an example
of when a firm tries to sell its products abroad. *his phenomenon is called a
________.
a. strategic marketing pricing problem
b. market pricing problem
c. tactical pricing problem
d. price escalation problem
e. transfer pricing problem
0>. A firm that charges a price to another unit in the compan" sets the ________ price for goods that it ships to its foreign
subsidiaries.
a. original price
b. transfer price
c. margin price
d. break@e!en price
e. customer !alue price
01. *he cost escalation problem exists for multinationals and !aries from countr" to
countr"= the .uestion is: ?ow to set prices in different countriesK 9ompanies ha!e
three choices. :ne is to set a uniform price e!er"where, two is to set a market@based
price in each countr", and three is to ________.
a. set a final %cost plus& price in each countr"
b. set a cost@based price in each countr"
c. let the market dictate priceGcountr"
d. !ar" the priceGmarketGcountr" on a dail" basis to reflect consumer demand
e. set the transfer price at marginal costs Q marginal re!enue
Answer: b Page: /84 e!el of difficult": ?ard
0$. 6n $>>> 7telco a 9anadian steelmaker, successfull" fought dumping changes against
steelmakers in Bra-il and other countries. %5umping& is defined or occurs when
________.
a. a compan" charges either less than its costs or less than it charges in its home
market
b. the compan" charges less that its costs but more than it charges in its home market
c. the compan"4s pricing plans are below current domestic prices
d. a compan" must increase its pricesGproduct prior to importing the product
e. a compan" unloads an excess suppl" of the product at the best possible prices to
the consumer
Answer: a Page: /84 e!el of difficult": (as"
);
0). *he %whole channel concept for international marketing& includes the following
steps________.
a. seller to seller4s international marketing head.uarters to channels between nations
to channels within foreign nations to final bu"ers
b. seller to marketing head.uarters to channels within foreign markets to final bu"ers
c. sellers to channels between nations to final bu"ers
d. sellers to channels within foreign nations to final bu"ers
e. sellers to international markets to channels within foreign nations to final bu"ers
04. 6n an increasingl" connected, highl" competiti!e global marketplace, go!ernment
officials, and marketers are concerned with how attitudes and beliefs about their
countr" affect consumer and business decision@making. ________is+are, the mental
associations and beliefs triggered b" a countr".
a. 9orporate ownership of the firm
b. #aterials used in manufacturing
c. Brand names and trademarks
d. 9ountr"@of@origin perceptions
e. 9ompetiti!e positions in the marketplace
Answer: d Page: /8/ e!el of difficult": #edium
00. A compan" has se!eral options when its products are competiti!el" priced but their
place of origin turns consumers off. *he compan" can consider ________.
a. re@packaging the product to disguise the countr" of origin
b. co@branding
c. reducing their countr" of origin mentions in their ad!ertising
d. re@branding the product to disguise the countr" of origin
e. co@production with a foreign compan" that has a better name.
0/. #ost brands are adapted to some extent to reflect significant differences in ________,
________, competiti!e forces, and the legal and political en!ironment.
a. consumer beha!ior, brand de!elopment
b. business mission, brand de!elopment
c. strateg" and consumer beha!ior
d. programs and marketing communications
e. political and social mores differences
4>
03. 5isad!antages to global marketing include differences in consumer needs, wants, and
usage patterns for products= difference in consumer response to marketing@mix
elements= differences in brand and product de!elopment and the competiti!e
en!ironment= and ________.
a. differences in marketing institutions
b. differences in language and consumer expectations
c. differences in product performance
d. differences in management4s reaction to the marketplace
08. #arketers must also adapt sales promotion techni.ues to different markets. 7e!eral (uropean countries ha!e laws pre!enting
or limiting sales promotion tools such as discounts. 6n German", ands4 (nd could not ad!ertise its ________.
a. woman4s bathing suits
b. sale price
c. close@out specials
d. end@of@the@season sale
e. mone"@back guarantee
Answer: e Page: /8) e!el of difficult": ?ard
0;. 9ompanies can manage their international marketing acti!ities in three wa"s. *hese
include, through export departments, international di!isions, ________.
a. or a global organi-ation
b. or from a fixed corporate head.uarters
c. or through a strong marketing department in the %host& countr"
d. and through local marketing efforts
/>. Bartlett and Ghoshal ha!e identified three organi-ational strategies for international firms. *hese
are: +1, a global strateg" treats the world as a single market= +$, a multinational strateg" treats the
world as a portfolio of national opportunities= and +), ________.
a. a local strateg" standardi-es all of the local elements
b. the marketing strateg" identifies those elements assigned to a countr" and uses
those elements plus corporate4s contribution in the marketing plan
c. a %glocal& strateg" standardi-es certain core elements and locali-es other elements
d. assumes that there are no %local& or multinational differences in formulating the
marketing mix
Answer: c Pages: /8;2/;> e!el of difficult": ?ard
41
Chapter 0: Ana'%1ing C!n#$,er Maret#
GENERAL CONCEPT QUESTIONS
M$'tip'e Ch!i(e
/1. #arketers are alwa"s looking for emerging trends that suggest new marketing
opportunities. :ne such trend is the %metrosexual.& Fhich of the following items
would the metrosexual most likel" ha!e some interest forK
a. An 6B# computer.
b. *ickets to FFE wrestling.
c. 7axophone lessons.
d. An all@o!er bod" spra" b" Axe.
e. 9owbo" boots made from elephant hide.
Answer: d Page: 13) e!el of difficult": #edium
$. )))))))) is the stud" of how indi!iduals, groups, and organi-ations select, bu", use,
and dispose of goods, ser!ices, ideas, or experiences to satisf" their needs and wants.
a. *arget marketing
b. Ps"chographic segmentation
c. Ps"cholog"
d. 9onsumer beha!ior
f. Product differentiation
Answer: d Page: 13) e!el of difficult": (as"
). *he fundamental determinant of a person4s wants and beha!ior is the person4s
________.
a. ps"che
b. national origin
c. culture
d. peer group
e. famil" tree
4. A child growing up in the Inited 7tates is exposed to all of the following !alues
(J9(P* ________.
a. achie!ement and success
b. acti!it"
c. efficienc" and practicalit"
d. the importance of the group in dail" life
4$
e. freedom
4)
0. Fhich of the following would be the best illustration of a subcultureK
a. A religion.
b. A group of close friends.
c. Aour uni!ersit".
d. A fraternit" or sororit".
e. Aour occupation.
/. Fith respect to facts about the American consumer, which of the following consumer electronics
is owned b" the !ast ma1orit" of consuming households with a ;) percent reporting ownershipK
a. A personal computer.
b. *iHo 5H<.
c. A cellular phone.
d. A microwa!e o!en.
e. A H9<.
3. ________ is defined as being relati!el" homogeneous and enduring di!isions in a
societ", which are hierarchicall" ordered and whose members share similar !alues,
interests, and beha!ior.
a. 9ulture
b. 7ubculture
c. 7ocial class
d. *he famil"
e. A group
8. 7ocial classes show distinct product and brand preferences in all the following
areas (J9(P* ________.
a. clothing
b. home furnishings
c. leisure acti!ities
d. automobiles
e. fast food
Answer: e Page: 13/ e!el of difficult": #edium
;. A person4s ________ consist+s, of all the groups that ha!e a direct +face@to@face, or
indirect influence on hisGher attitudes or beha!ior.
a. culture
b. subculture
c. ps"chographics
d. reference groups
e. demographics
1>. A+n, ________ group is one whose !alues or beha!ior an indi!idual re1ects.
44
a. aspirational
b. disassociati!e
c. membership
d. primar"
e. procreational
Answer: b Page: 133 e!el of difficult": (as"
11. 6f a direct mail marketer wished to direct promotional efforts toward the famil" of
________, efforts need to be directed toward parents and siblings of the famil"
members.
a. orientation
b. procreation
c. immediac"
d. intimac"
e. reference
1$. (xpected to account for a .uarter of the I.7. population b" $>0>, ________ are the
fastest growing minorit".
a. African Americans
b. Asian Americans
c. ?ispanic Americans
d. (uropean Americans
e. Arabic Americans
1). *he dominant cohort, with respect to families, for the next fift" "ears ma" !er" well
be the ________ cohort.
a. married@couple household
b. single adults
c. single seniors
d. married seniors
e. married@couples with parents li!ing with them
Answer: b Page: 13; e!el of difficult": ?ard
14. ?usbands and wi!es displa" different decision@making roles in most families. *he trend for
dominant decision making in families is for ________ to be responsible for most of the decisions.
a. the husband
b. the wife
c. 1oint decision making +both husband and wife,
d. holistic decision making
e. child@oriented decision making
Answer: c Page: 13; e!el of difficult": #edium
40
10. *he 5isne" 9hannel has become the compan"4s cash cow for its abilit" to reach the
underser!ed ________ market'8@ to 14@"ear@olds.
a. teen
b. twixt
c. mid@
d. tween
e. "oung adult
Answer: d Page: 13; e!el of difficult": #edium
1/. People choose products that reflect and communicate their role and actual or desired
________ in societ".
a. group
b. status
c. attitudes
d. beliefs
e. feelings
Answer: b Page: 18> e!el of difficult": #edium
13. 9onsumption ma" be shaped b" ________ +such as marriage, childbirth, or di!orce,.
a. the ps"chological life c"cle
b. the product life c"cle
c. the lifeGdeath life c"cle
d. post@pubert" c"cles
e. critical life e!ents or transitions
18. Product choice is greatl" affected b" economic circumstances. All of the following
would be among those circumstances (J9(P* ________.
a. spendable income
b. sa!ings and assets
c. debts
d. occupation
e. borrowing power
Answer: d Page: 18$ e!el of difficult": (as"
1;. ________ is a set of distinguishing human ps"chological traits that lead to relati!el"
consistent and enduring responses to en!ironmental stimuli.
a. 6mage
b. Personalit"
c. Beliefs
d. ?eredit"
e. 9ulture
Answer: b Page: 18$ e!el of difficult": #edium
4/
$>. Fhen the #arlboro #an was depicted in ad!ertising as a rugged outdoor, tough
cowbo" t"pe, this was done to establish what is called a ________.
a. trademark
b. brand name
c. brand personalit"
d. ps"chological approach to ad!ertising
e. brand reference
Answer: c Page: 18$ e!el of difficult": #edium
$1. ________ portra"s the %whole person& interacting with his or her en!ironment.
a. Attitude
b. <eference group
c. ifest"le
d. 9ulture
e. 7ubculture
Answer: c Page: 18) e!el of difficult": #edium
$$. 9onsumers toda" are experiencing a time famine because of their bus" lifest"les. :ne
wa" to a!oid the difficulties of time famine, which is of particular interest to
marketers, is ________.
a. to set fewer goals
b. to multitask
c. to gi!e in to personal burdens
d. to report frustration to management
e. to de!elop a callous attitude toward marketers
Answer: b Page: 18) e!el of difficult": ?ard
$). Fith respect to understanding consumer beha!ior, there are four ke" ps"chological
processes. All of the following would be among those processes (J9(P* ________.
a. moti!ation
b. perception
c. learning
d. self@reliance
e. memor"
Answer: d Page: 184 e!el of difficult": (as"
$4. A ________ when it is aroused to a sufficient le!el of intensit".
a. need becomes a moti!e
b. moti!e becomes a need
c. desire becomes a realit"
d. unfulfilled demand becomes a crisis
e. personal demand exceeds the abilit" to rationall" re1ect
$0. ________ assumed that the ps"chological forces shaping people4s beha!ior are
largel" unconscious, and that a person cannot full" understand his or her own
moti!ations.
43
a. Abraham #aslow
b. Erederick ?er-berg
c. 7igmund Ereud
d. Oohn 9acioppo
e. Rarl #arx
$/. Erederick ?er-berg de!eloped a ________ that distinguishes
dissatisfiers and satisfiers.
a. trait@role theor"
b. ps"chological constraint theor"
c. probabilit" scale
d. leadership model
e. two@factor theor"
$3. At the top of #aslow4s hierarch" of needs +shown as a p"ramid in the text, are
________ needs.
a. esteem
b. self@actuali-ation
c. social
d. safet"
e. ph"siological
$8. 6t has been estimated that the a!erage person is exposed to o!er ________ ads or
brand communications a da".
a. 1,0>>
b. 1,)>>
c. 1,>>>
d. 8>>
e. 0>>
Answer: a Page: 18/ e!el of difficult": ?ard
$;. ________ is the tendenc" to interpret information in a wa" that will fit our
preconceptions.
a. 7electi!e retention
b. 9ogniti!e dissonance
c. 7electi!e distortion
d. 7ubliminal perception
e. 5iscrimination
Answer: c Page: 18/ e!el of difficult": #edium
)>. A cigarette ad has a picture of a "oung man la"ing on his back and dreamil" looking
at clouds in the sk". *hough not readil" ob!ious to the casual reader, there is a
48
message in the clouds that sa"s %r@e@l@a@x.& *his would be an example of which of
the followingK
a. 7electi!e distortion
b. 9ogniti!e dissonance
c. 7electi!e retention
d. 7ubliminal perception
e. 7hort@term memor"
)1. A ________ is a strong internal stimulus impelling action.
a. cue
b. dri!e
c. reinforcement
d. discrimination
e. belief
)$. ________ teaches marketers that the" can build demand for a product b" associating
it with strong dri!es, using moti!ating cues, and pro!iding positi!e reinforcement
a. 5emand theor"
b. earning theor"
c. (conomic theor"
d. Ps"chological theor"
e. 5emographic theor"
)). As <ita scans the "ellow pages section of her phone book looking for a florist, she
sees se!eral others products and ser!ices ad!ertised. *hough interesting on first
glance, she .uickl" returns to her primar" task of finding a florist. *he items that
distracted her from her search were most likel" stored in which of the following
t"pes of memor"K
a. 7hort@term memor"
b. ong@term memor"
c. #iddle memor"
d. 7ubconscious memor"
e. 7ubliminal memor"
4;
)4. Brand associations consist of all the brand@related thoughts, feelings, perceptions,
images, experiences, beliefs, attitudes, and so on that become linked to the brand
________.
a. stimulus
b. link
c. connection
d. personalit"
e. node
)0. 6n general, the more attention placed on the meaning of information during
________, the stronger the resulting associations in memor" will be.
a. encoding
b. decoding
c. classification
d. retrie!al
e. memori-ation
Answer: a Page: 18; e!el of difficult": #edium
)/. <epeated exposures to information pro!ide greater opportunit" for processing and
thus the potential for ________.
a. more profits
b. more sales
c. stronger associations
d. increased brand personalit"
e. more one@to@one relationships
Answer: c Page: 1;> e!el of difficult": #edium
)3. 9ogniti!e ps"chologists belie!e that memor" is ________, so that once information
becomes stored in memor", its strength of association deca"s !er" slowl".
a. !er" limited
b. somewhat limited
c. fluid
d. often reflecti!e
e. extremel" durable
Answer: e Page: 1;1 e!el of difficult": #edium
)8. *he fi!e@stage model of the consumer bu"ing process includes all of the following
stages (J9(P* ________.
a. problem recognition
b. information search
c. social interaction
d. purchase decision
e. influencer
Answer: c Page: 1;1 e!el of difficult": (as"
0>
);. *he bu"ing process starts when the bu"er recogni-es a _________.
a. product
b. an ad!ertisement for the product
c. a salesperson from a pre!ious !isit
d. problem or need
e. an internal cue
Answer: d Page: 1;1 e!el of difficult": #edium
4>. Fhich of the following is considered to be a more ad!anced form of information
search wherein the person might phone friends or go online to secure information
about a product or ser!iceK
a. ?eightened attention
b. 7hort@term memor" processing
c. 7ubliminal processing of information
d. ong@term memor" processing
e. Acti!e information search
Answer: e Pages: 1;121;$ e!el of difficult": ?ard
41. :f ke" interest to marketers are the ma1or informational sources to which the
consumer will turn and the relati!e importance of each. Fhich of the following
would be considered to be an experiential information sourceK
a. 9onsumer@rating organi-ations.
b. *he mass media.
c. Ac.uaintances.
d. Feb sites.
e. Ising the product itself.
Answer: e Page: 1;$ e!el of difficult": #edium
4$. Fhich of the following is considered to be biggest single source of consumer
information from a commercial source +o!er 4> percent of car bu"ers use this source
to gather information,K
a. *he I.7. 9hamber of 9ommerce
b. O.5. Power C Associates
c. Consumer Reports
d. *he Better Business Bureau
e. Inderwriter4s aborator"
Answer: c Page: 1;$ e!el of difficult": #edium
4). Brands that meet consumers4 initial bu"ing criteria are called the ________.
a. total set
b. awareness set
c. consideration set
d. choice set
e. decision set
Answer: c Page: 1;$ e!el of difficult": (as"
01
44. Fith respect to consumer decision making, the ________ is the set of strong
contenders from which one will be chosen as a supplier of a good or ser!ice.
a. total set
b. awareness set
c. consideration set
d. choice set
e. decision set
Answer: d Page: 1;$ e!el of difficult": #edium
40. A+n, ________ is a descripti!e thought that a person holds about something.
a. attitude
b. belief
c. desire
d. feeling
e. emotion
Answer: b Page: 1;) e!el of difficult": #edium
4/. A+n, ________ puts people into a frame of mind: liking or disliking an ob1ect,
mo!ing toward or awa" from it.
a. attitude
b. belief
c. feeling
d. position
e. stance
Answer: a Page: 1;4 e!el of difficult": #edium
43. *he expectanc"@!alue model of attitude formation posits that consumers e!aluate
products and ser!ices b" combining their ________.
a. needs
b. wants
c. desires
d. brand beliefs
e. consuming attitudes
Answer: d Page: 1;4 e!el of difficult": #edium
48. All of the following would be considered to be strategies for approaching consumers
who had re1ected "our compan"4s model of a product for another competiti!e brand
(J9(P* ________.
a. redesign "our compan"4s product
b. alter beliefs about "our compan"4s brand
c. co!ertl" alter the .ualitati!e data about "our product
d. alter beliefs about competitors4 brands
e. call attention to neglected attributes
Answer: c Pages: 1;021;/ e!el of difficult": #edium
0$
4;. 9ustomer !alue anal"sis re!eals the compan"4s strengths and weaknesses relati!e to
!arious competitors. Fhich of the following would be considered to be the first step
in this processK
a. #onitor customer !alues o!er time.
b. Assess the .uantitati!e importance of the different attributes.
c. Assess the compan" and competitors4 performances on customer !alues.
d. 6dentif" the ma1or attributes customers !alue.
e. (xamine customer ratings of the compan" and competitors.
Answer: d Page: 1;/ e!el of difficult": #edium
0>. Fith respect to consumer purchase intention, all of the following would be among
the sub@decisions made b" consumers (J9(P* ________.
a. emotional !alue
b. brand
c. dealer
d. timing
e. pa"ment method
Answer: a Pages: 1;/21;3 e!el of difficult": #edium
01. Fith the ________ heuristic, the consumer sets a minimum acceptable cutoff le!el
for each attribute and chooses the first alternati!e that meets the minimum standard
for all attributes.
a. con1uncti!e
b. lexicographic
c. elimination@b"@aspects
d. primar"
e. secondar"
Answer: a Pages: 1;3 e!el of difficult": ?ard
0$. (!en if consumers form brand e!aluations, two general factors can inter!ene
between the purchase intention and the purchase decision. :ne of these is
unanticipated situational factors. Fhat is the second factorK
a. Amount of purchasing power.
b. Attitudes of others.
c. 7hort@term memor" capabilities.
d. Abilit" to return merchandise.
e. *he self@concept.
Answer: b Pages: 1;3 e!el of difficult": #edium
0). ________ risk occurs if the product fails to perform up to expectations.
a. Ph"sical
b. Einancial
c. 7ocial
d. Ps"chological
e. Eunctional
Answer: e Page: 1;8 e!el of difficult": ?ard
0)
04. 6f performance meets consumer expectations, the consumer is ________.
a. delighted
b. satisfied
c. disappointed
d. surprised
e. o!erwhelmed
Answer: b Page: 1;8 e!el of difficult": (as"
00. A ke" dri!er of sales fre.uenc" is the ________ rate.
a. product consumption
b. disposal
c. refusal
d. utilit"
e. option
Answer: a Page: 1;; e!el of difficult": (as"
0/. *he le!el of engagement and acti!e processing undertaken b" the consumer in
responding to a marketing stimulus is called ________.
a. elaboration likelihood
b. consumer disengagement
c. consumer in!ol!ement
d. !ariet"@seeking
e. low@in!ol!ement
Answer: c Page: $>> e!el of difficult": #edium
03. 6f a consumer is persuaded to bu" a product b" a message that re.uires little thought
and is based on an association with a brand4s positi!e consumption experiences from
the past, the consumer used a ________ to arri!e at this purchase decision.
a. central route
b. peripheral route
c. beha!ioral route
d. sub1ecti!e route
e. ob1ecti!e route
Answer: b Page: $>> e!el of difficult": ?ard
08. Fith the ________, predictions of usage are based on .uickness and
ease of use.
a. a!ailabilit" heuristic
b. representati!e heuristic
c. anchoring heuristic
d. ad1ustment heuristic
e. semantic heuristic
Answer: a Page: $>1 e!el of difficult": #edium
04
0;. Ben alwa"s reaches for the bright blue and "ellow box of <it- crackers when he
!isits the snack food aisle in the grocer" store. ?e rarel" e!en reads the box or
checks the price. Fhich of the following heuristics is most likel" being used b" BenK
a. A!ailabilit"
b. <epresentati!e
c. Anchoring
d. Ad1ustment
e. 7emantic
Answer: b Page: $>1 e!el of difficult": ?ard
/>. ________ refers to the manner b" which consumers code, categori-e, and e!aluate financial
outcomes of choices.
a. 9ost accounting
b. Einancial accounting
c. Beha!ioral accounting
d. #ental accounting
e. Eactual accounting
Answer: d Page: $>$ e!el of difficult": #edium
00
9hapter 3: Anal"-ing Business #arkets
M$'tip'e Ch!i(e
1. *o create and capture !alue, sellers need to understand business organi-ations4 needs,
resources, policies, and ________.
g. demands
h. protocols
i. strategies
1. bu"ing procedures
k. personnel policies
Answer: d Page: $>; e!el of difficult": (as"
/$. Febster and Find define ________ as the decision@making process b" which formal
organi-ations establish the need for purchased products and ser!ices and identif",
e!aluate, and choose among alternati!e brands and suppliers.
a. marketing channels
b. organi-ational bu"ing
c. demand@oriented bu"ing
d. purchasing
e. in!entor" control
Answer: b Page: $1> e!el of difficult": #edium
/). *he ________ consists of all the organi-ations that ac.uire goods and ser!ices used in
the production of other products or ser!ices that are sold, rented, or supplied to
others.
a. business market
b. consumer market
c. e@commerce market
d. global market
e. supplier market
Answer: a Page: $1> e!el of difficult": #edium
0/
/4. Business markets ha!e se!eral characteristics that contrast sharpl" with those of
consumer markets. All of the following would be among those characteristics
(J9(P* ________.
a. fewer, larger bu"ers
b. close supplier@customer relationship
c. professional purchasing
d. in!erted demand
e. multiple sales calls
Answer: d Pages: $1>2$11 e!el of difficult": ?ard
/0. All of the following would be among the ma1or industries that make up the business
market (J9(P* ________.
a. agriculture, forestr", and fisheries
b. manufacturing
c. construction
d. banking, finance, and insurance
e. the 6nternet
Answer: e Page: $1> e!el of difficult": hard
//. *rained purchasing agents, who must follow their organi-ation4s ________, often
purchase business goods.
a. culture
b. past purchasing histor"
c. purchasing policies, constraints, and re.uirements
d. needs
e. financial budgets
/3. Iltimatel", the amount of steel sold to General #otors depends on the consumer4s
demand for G# cars and trucks. Erom the standpoint of the steel manufacturer, which
of the following demand forms is most pertinentK
a. 5eri!ed demand
b. 6nelastic demand
c. Geographic demand
d. <elational demand
e. 7tatic demand
Answer: a Page: $11 e!el of difficult": ?ard
/8. *he demand for business goods is ultimatel" deri!ed from the demand for ________.
a. raw materials
b. consumer goods
c. electronics
d. business solutions
e. e@commerce
Answer: b Page: $11 e!el of difficult": (as"
03
/;. *he business bu"er faces man" decisions in making a purchase. *he number of
decisions depends on the bu"ing situation. All of the following examples are
appropriate to the preceding (J9(P* ________.
a. complexit" of the problem being sol!ed
b. newness of the bu"ing re.uirement
c. number of people in!ol!ed
d. applicabilit" of situation to mission statement
e. time re.uired
Answer: d Page: $1$ e!el of difficult": ?ard
3>. *he purchasing department bu"s office supplies on a routine basis. *his t"pe of
purchase is classified as a ________.
a. straight rebu"
b. modified rebu"
c. new task
d. secondar" purchase
e. preordained purchase
Answer: a Page: $1$ e!el of difficult": (as"
31. *here are a series of guidelines for selling to small businesses. Fhich of the
following should not be among those guidelinesK
a. 5on4t waste their time.
b. 5o keep it simple.
c. 5o use the 6nternet.
d. 5on4t forget about direct contact.
e. 5o lump small and midsi-e businesses together for efficienc" sake.
Answer: e Page: $1$ e!el of difficult": #edium
72. The business buyer makes the fewest decisions in the ________.
a. modified rebu"
b. regular bu"
c. straight rebu"
d. new rebu"
e. new task bu"
Answer: c Page: $1) e!el of difficult": #edium
3). #an" business bu"ers prefer to bu" a total solution to a problem from one seller.
________ is the correct term for this process.
a. 9hannel consolidation
b. 7"stems bu"ing
c. Hertical bu"ing
d. ?ori-ontal bu"ing
e. 7uppl" bu"ing
Answer: b Page: $1) e!el of difficult": #edium
08
34. Jerox offers a ________ approach to prospecti!e clients when it offers a complete
turnke" procedure, operation, and management of the client4s information and
communication need.
a. suppl" bu"ing
b. primar" bu"ing
c. s"stems bu"ing
d. co@op bu"ing s"stem
e. direct bu"ing
Answer: c Page: $1) e!el of difficult": #edium
30. 6f Ampex 7upport 7"stems is the single supplier for a local manufacturing compan"4s
#<: +maintenance, repair, operating, supplies and needs, Ampex 7upport 7"stems
would then be considered as pro!iding ________ for the manufacturer.
a. s"stems bu"ing
b. purchasing support
c. turnke" logistics
d. decision support
e. s"stems contracting
Answer: e Page: $14 e!el of difficult": ?ard
3/. ________ is a ke" industrial marketing strateg" in bidding to build large@scale
industrial products +e.g., dams, pipelines, et cetera,.
a. 7"stems contracting
b. 7"stems bu"ing
c. 7"stems selling
d. 7olutions bu"ing
e. *urnke" logistics
Answer: c Page: $14 e!el of difficult": ?ard
33. ________ is composed of all those indi!iduals and groups who participate in the
purchasing decision@making process, who share some common goals and the risks
arising from their decisions.
a. *he bu"ing center
b. *he marketing sales team
c. 7trategic management
d. (ngineering support
e. *he logistics center
0;
38. 6n the purchasing decision process, the ________ are those who re.uest that
something be purchased. *he" ma" be users or others in the organi-ation.
a. users
b. initiators
c. influencers
d. deciders
e. appro!ers
Answer: b Page: $14 e!el of difficult": (as"
3;. 6n the purchasing decision process, the ________ are those who ha!e the power to
pre!ent sellers or information from reaching members of the bu"ing center.
a. gatekeepers
b. bu"ers
c. initiators
d. appro!ers
e. deciders
8>. *he t"pical bu"ing center has a minimum of ________ members.
a. $2)
b. )24
c. 420
d. 02/
e. 1>
81. Febster cautions that ultimatel", ________ make purchasing decisions.
a. onl" senior managers
b. indi!iduals, not organi-ations
c. organi-ations, not indi!iduals
d. third parties
e. s"stems contractors
Answer: b Page: $10 e!el of difficult": #edium
8$. 7mall sellers concentrate their marketing efforts on reaching ________.
a. appro!ers
b. initiators
c. ke" bu"ing influencers
d. users
e. the purchasing staff
Answer: c Page: $1/ e!el of difficult": #edium
/>
8). *o the ________ price is e!er"thing and transactional selling is used.
a. solution@oriented customers
b. income@oriented customers
c. gold@standard customers
d. strategic@!alue customers
e. price@oriented customers
Answer: e Page: $1/ e!el of difficult": (as"
84. *he strategic@!alue customers want a fairl" permanent sole@supplier relationship with
"our compan". Fhich of the following would be the best selling format to use with
the strategic@!alue customerK
a. *ransactional selling
b. 9onsultati!e selling
c. Sualit" selling
d. (nterprise selling
e. 6ndirect demand selling
Answer: d Page: $1/ e!el of difficult": ?ard
80. 7ome customers are willing to handle price@oriented bu"ers b" setting a lower price,
but establishing restricti!e conditions. All of the following would be among those
conditions (J9(P* ________.
a. limiting the .uantit" that can be purchased
b. no refunds
c. no ad1ustments
d. no ser!ices
e. no customer ad!ertising
Answer: e Page: $1/ e!el of difficult": #edium
8/. 6f a supplier signs an agreement with a customer that states P)0>,>>> in sa!ings will
be earned b" the customer o!er the next 18 months in an exchange for a ten@fold
increase in the customer4s share of supplies ordered b" the customer, the two parties
will ha!e participated in what is called ________.
a. solution selling
b. consultati!e selling
c. risk and gain sharing
d. strategic alignment
e. demand shifting
/1
83. F.F. Grainger emplo"ees work at large customer facilities to reduce materials@
management costs. Fhich of the following forms of solution selling is F.F. Grainger
usingK
a. 7olutions to partnerships.
b. 7olutions to alter corporate culture.
c. 7olutions to enhance customer re!enues.
d. 7olutions to decrease customer risks.
e. 7olutions to reduce customer costs.
Answer: e Page: $13 e!el of difficult": #edium
88. 6n principle, business bu"ers seek to ________ in relation a market offering4s costs.
a. spread risks
b. obtain the highest benefit package
c. maintain e!er"da"@low@prices
d. outsource as much as is possible
e. eliminate partners4 shares in profits as much as possible
Answer: b Page: $13 e!el of difficult": ?ard
8;. 6n the past, what position did purchasing departments hold in the management
hierarch" of most organi-ationsK
a. A high le!el because of their role in managing the compan"4s costs.
b. A moderate le!el because of their spott" record on controlling costs.
c. A low le!el despite the fact that the" manage more than half of the compan"4s
costs.
d. A secreti!e position.
e. *here has been no determination of this position.
;>. *he new, more strategicall"@oriented purchasing departments ha!e a mission. Fhich
of the following most accuratel" describes that missionK
a. #ake the most profit possible and remain independent of entanglements.
b. Approach e!er" purchasing opportunit" as means to create interdependenc".
c. 7eek the best !alue from fewer and better suppliers.
d. :utsource the suppl" function.
e. Abandon all strategies except for s"stems selling and bu"ing.
;1. Fhen the purchaser4s focus is short term and tactical and the" are rewarded on their
abilit" to obtain the lowest price from suppliers for the gi!en le!el of .ualit" and
a!ailabilit", this is referred to as ________.
a. procurement orientation
b. suppl" chain management orientation
c. bu"ing orientation
d. sellers orientation
e. market orientation
/$
;$. Fhen bu"ers simultaneousl" seek .ualit" impro!ements and cost reductions and the"
de!elop collaborati!e relationships with ma1or suppliers and seek sa!ings through
better management of ac.uisition, con!ersion, and disposal costs, this is referred to as
________.
a. sellers orientation
b. suppl" chain management orientation
c. market orientation
d. procurement orientation
e. bu"ing orientation
;). Fhen the purchasing role is further broadened to become a more strategic, !alue@
adding operation, this is referred to as ________.
a. suppl" chain management orientation
b. bu"ing orientation
c. sellers orientation
d. procurement orientation
e. routine orientation
;4. Peter Rral1ic distinguished four product@related purchasing processes. Fhich of the
following matches to products that ha!e high !alue and cost to the customer but
in!ol!e little risk of suppl" because man" companies make themK
a. 7trategic products
b. Bottleneck products
c. e!erage products
d. <outine products
e. 9ommodit" products
Answer: c Page: $1; e!el of difficult": ?ard
;0. *he products that ha!e high !alue and cost to the customer and also in!ol!e high risk
+e.g., mainframe computers, are called ________.
a. strategic products
b. bottleneck products
c. le!erage products
d. routine products
e. commodit" products
Answer: a Page: $1; e!el of difficult": #edium
/)
;/. #ost purchasing professionals describe their 1obs as more ________, technical, team@
oriented, and in!ol!ing more responsibilit" than e!er before.
a. risk"
b. strategic
c. ethicall" difficult
d. Feb@based
e. human@based
Answer: b Page: $1; e!el of difficult": ?ard
;3. <obinson and Associates ha!e identified eight stages and called them buyphases. *his
model is called the ________ framework.
a. bu"grid
b. bu"ingGselling
c. seller@centered
d. commercial
e. bu"@anal"sis
Answer: a Page: $1; e!el of difficult": #edium
;8. *he first step +bu"phase, in the straight rebu" bu"class is ________.
a. problem recognition
b. general need description
c. product specification
d. supplier search
e. proposal solicitation
Answer: c Page: $$> e!el of difficult": ?ard
;;. A new task bu"class decision begins with which of the following bu"phasesK
a. Problem recognition
b. General need description
c. Product specification
d. 7upplier search
e. Proposal solicitation
Answer: a Page: $$> e!el of difficult": #edium
1>>. Business marketers can stimulate problem recognition b" ________.
a. trade directories
b. direct mail, telemarketing, and calling on prospects
c. encouraging the Better Business Bureau to release statistics
d. consumer ad!ertising
e. re.uesting testimonials from existing customers
Answer: b Page: $$1 e!el of difficult": #edium
/4
1>1. Fhen ?ewlett@Packard sells such complex products as a network computer
s"stem, it is engaging in what it calls the ________ concept because it offers
information and specific solutions to uni.ue problems.
a. %product specification&
b. %price de@escalation&
c. %s"stems selling&
d. %trusted ad!isor&
e. %strategic alliance&
Answer: d Page: $$1 e!el of difficult": #edium
1>$. I.7. businesses spent about ________ on online transactions with other
businesses in $>>$ as compared to consumer online purchases of P31 billion during
the same time period.
a. P/0> billion
b. P0>> billion
c. P48$ billion
d. P$$0 billion
e. P0) billion
Answer: c Page: $$$ e!el of difficult": ?ard
1>). Fith respect to e@procurement, Feb sites are organi-ed around two t"pes of e@
hubs: ________.
a. !ertical and hori-ontal hubs
b. !ertical and functional hubs
c. functional hubs and organi-ational hubs
d. supplier and user hubs
e. manufacturer and supplier hubs
Answer: b Page: $$$ e!el of difficult": ?ard

1>4. Fith respect to e@procurement, 9oca@9ola, 7ara ee, Rraft, Pepsi9o, Gillette,
PCG, and se!eral other companies 1oined forces to form a ________ called *ransora
to use their combined le!erage to obtain lower prices for raw materials.
a. manufacturer4s co@op
b. supplier4s co@op
c. middleman group
d. bu"ing alliance
e. cabal
Answer: d Page: $$$ e!el of difficult": #edium
/0
1>0. Business@to@business c"berbu"ing is flourishing on the 6nternet. 7o far, most of
the products that businesses are bu"ing electronicall" are ________, and tra!el and
entertainment ser!ices.
a. promotion ser!ices such as ad!ertising
b. ?< ser!ices +e.g., emplo"ee recruitment,
c. #<: materials +maintenance, repair, and operations,
d. food ser!ices
e. marketing research ser!ices
Answer: c Page: $$) e!el of difficult": #edium
1>/. #o!ing into e@procurement has man" benefits. Fhich of the following would not
be among those benefitsK
a. Aggregating purchasing across multiple departments gains larger !olume
discounts.
b. Aggregating purchasing across multiple departments gains centrall" negotiated
!olume discounts.
c. *here is less bu"ing of substandard goods from outside the appro!ed list of
suppliers.
d. A smaller purchasing staff is re.uired.
e. Purchasing gains a significant le!erage with top management because of its
management team.
Answer: e Page: $$4 e!el of difficult": ?ard
1>3. Fith respect to e@procurement commitment, in $>>) ________ was named
number one in BtoB maga-ine4s annual ranking of the top B@to@B Feb sites because
of its abilit" to generate sales +about 00 percent of the compan"4s total sales, and
commitment to the process.
a. 9oca@9ola
b. 5ell 9omputers
c. ?ewlett@Packard
d. 9adillac
e. Boeing
Answer: c Page: $$4 e!el of difficult": ?ard
1>8. 6n the proposal solicitation process, ________ should be marketing documents
that describe !alue and benefits in customer terms.
a. written proposals
b. oral proposals
c. e@proposals
d. alliance proposals
e. global proposals
Answer: a Page: $$0 e!el of difficult": #edium
//
1>;. Jerox .ualifies onl" suppliers who meet the 67: ;>>> .ualit" standards, but to
win the compan"4s top award'certification status'a supplier must first complete
________.
a. go!ernment certification
b. an extensi!e ethics statement e!aluation
c. the Jerox #ultinational 7upplier Sualit" 7ur!e"
d. a compan" training and indoctrination period
e. a #alcolm Baldridge Dational Sualit" Award entr" form and then enter
Answer: c Page: $$0 e!el of difficult": #edium
11>. All of the following are considered to be methods of assessing customer !alue
(J9(P* ________.
a. direct sur!e" .uestions
b. exit inter!iewing
c. focus@group !alue assessment
d. con1oint anal"sis
e. benchmarks
Answer: b Page: $$/ e!el of difficult": #edium
111. According to purchasing professionals, which of the following is considered to be
the ma1or responsibilit" of the purchasing agent in supplier negotiationsK
a. Eorming networks for future business.
b. Assuring .ualit" conformance.
c. Being fair with all parties.
d. *o use a team approach in negotiations.
e. Degotiating price.
Answer: e Page: $$/ e!el of difficult": ?ard
11$. 6f an industrial bu"er leases hea!" e.uipment like machiner" and trucks rather
than purchasing them, the lessee gains se!eral ad!antages. Fhich of the following
would D:* be among those ad!antagesK
a. ?igher .ualit" products.
b. 9onser!ing capital.
c. Getting the latest products.
d. <ecei!ing better ser!ice.
e. 7ome tax ad!antages.
Answer: a Page: $$3 e!el of difficult": ?ard
11). %:*6ED(& is a term that summari-es three desirable outcomes of a B@to@B
transaction: :*'deli!er on time= 6E'in full= and, D('________.
a. no error
b. no emergencies
c. non@experimental
d. new entrepreneurs
e. need e.uipment
Answer: a Page: $$3 e!el of difficult": (as"
/3
114. 9orporate credibilit" depends on three factors: corporate expertise, corporate
trustworthiness, and ________.
a. corporate manpower
b. corporate mission statement
c. corporate likeabilit"
d. corporate go!ernance
e. corporate management structure
Answer: c Page: $$8 e!el of difficult": ?ard
110. 9annon and Perreault found that bu"er@suppler relationships differed according to
four factors. Fhich of the following would D:* be among those factorsK
a. 6mportance of suppl".
b. 9omplexit" of suppl".
c. A!ailabilit" of alternati!es.
d. 7uppl" market d"namism.
e. 5emand market conser!atism.
Answer: e Page: $$; e!el of difficult": #edium
11/. According to 9annon and Perreault, bu"er@supplier relationships fall into eight
different categories. Fhich of the following relationships is characteri-ed as being
one that has much trust and commitment leading to a true partnershipK
a. #utuall" adapti!e
b. 9ollaborati!e
c. Basic bu"ing and selling
d. 9ustomer suppl"
e. 9ooperati!e s"stems
Answer: b Page: $$; e!el of difficult": #edium
113. 6n the ________ categor" of 9annon and Perreault4s bu"er@supplier relationship
categori-ation, although bonded b" a close, cooperati!e relationship, the seller adapts
to meet the customer4s needs without expecting much adaptation or change on the
part of the customer in exchange.
a. contractual transaction
b. cooperati!e s"stem
c. collaborati!e
d. mutuall" adapti!e
e. customer is king
Answer: e Page: $$; e!el of difficult": #edium
/8
118. Hertical coordination can facilitate stronger customer@seller ties but at the same
time ma" increase the risk to consumer4s and supplier4s ________ +e.g., those
expenditures tailored to a particular compan" and !alue chain partner,.
a. logistics channel
b. independent operations
c. specific in!estments
d. le!erage abilit"
e. li.uidit" situation
Answer: c Page: $)> e!el of difficult": ?ard
11;. *he ________ market consists of schools, hospitals, nursing homes, prisons, and
other institutions that must pro!ide goods and ser!ices to people in their care.
a. !ertical
b. nonprofit
c. spot
d. secondar" business
e. institutional
Answer: e Page: $)> e!el of difficult": #edium
1$>. Fith purchases of P$>> billion annuall" in goods and ser!ices, ________ is the
largest customer in the world.
a. Fal@#art
b. Grainger
c. the 7tate of 9alifornia
d. the I.7. go!ernment
e. atin America
Answer: d Page: $)$ e!el of difficult": #edium
/;

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