STUDY GUIDE

Question 1

Who among the following individuals is practicing green marketing?

a. Carrie, who sells solar-powered watches
b. Mark, who volunteers at a local self-help group
c. Pamela, who organizes blood donation drives
d. John, who gives money to a nonprofit organization

Answer 1

A

Question 2

_____ remain constant regardless of how many products are sold.

a. Overhead costs
b. Marginal costs
c. Variable costs
d. Fixed costs

Answer 2

D

Question 3

Stacey, a multinational company that sells consumer durables, divides its target markets on the basis of the density of population in the areas it operates in. It employs more salesmen and spends more money on promotions in cities with high population densities. In the context of consumer market segmentation, which of the following types of market segmentation does Stacey most likely follow?

a. Behavioral segmentation
b. Geographic segmentation
c. Psychographic segmentation
d. Customer-based segmentation

Answer 3

B

Question 4

Companies employ _____ when they actively promote the ecological benefits of their products.
a. green marketing
b. social marketing
c. environmental scanning
d. mass customization

Answer 4

A

Question 5

Wingate Inc., is an independent distributor that distributes paper cups, pens, pencils, and notepads to other firms on a large scale and takes legal possession of the goods it distributes. In this scenario, it can be said that Wingate, Inc. is a(n) _____.
a. agent
b. broker
c. merchant wholesaler
d. store retailer

Answer 5

C

Question 6

Product augmentation:
a. calls for greater purchase power at the consumer end.
b. results in the dilution of the actual goods.
c. damages the reputation of the company.
d. sharpens the competitive edge of the marketer’s products.

Answer 6

D

Question 7

Which of the following statements is true of ownership utility?
a. It boosts customer satisfaction by providing helpful information.
b. It adds value by making products available at a convenient time for consumers.
c. It satisfies customer needs by providing the right products in the right place.
d. It adds value by making it easier for customers to possess the goods that they purchase.

Answer 7

D

Question 8

A downside of publicity is that:
a. it lacks proper planning.
b. it is often perceived by consumers as an untrustworthy and unethical practice.
c. the marketer has no control over how the media present the company or its products.
d. it is a highly expensive affair.

Answer 8

C

Question 9

In the year 1906, Silver Spoons, a company that sold kitchen utensils, had only one model of each of its products. The company did not feel the need to differentiate its wares because it did not analyze its business from a customer’s point of view. In the context of the evolution of marketing, which of the following eras does this scenario most likely refer to?
a. The relationship era
b. The marketing era
c. The production era
d. The selling era

Answer 9

C

Question 10

In the introduction stage of the product life cycle, companies are primarily focused on:
a. protecting the market share of the product from competitors.
b. introducing new variations of existing products.
c. defending the franchise with competitive advertising and price cuts.
d. building customer awareness of the product.

Answer 10

D

Question 11

In the context of business products, _____ consist of small-ticket items that businesses consume on an ongoing basis but do not become part of the final product.
a. accessory equipment
b. maintenance products
c. unsought products
d. processed materials

Answer 11

B

Question 12

_____ involves placing a producer’s products in as many stores as possible.
a. Selective distribution
b. Direct distribution
c. Intensive distribution
d. Wholesale distribution

Answer 12

C

Question 13

The coastal town of Brookwood offers various exotic water sports and hiking expeditions to its tourists. The town government of Brookwood advertises its adventure tourism in travel magazines, newspapers, and on the television in neighboring countries. Which of the following marketing strategies does this scenario best illustrate?
a. Place marketing
b. People marketing
c. Event marketing
d. Idea marketing

Answer 13

A

Question 14

Which of the following business product categories refers to large capital purchases made by a company that are designed for a long productive life?
a. Convenience products
b. Accessory equipment
c. Installations
d. Unsought products

Answer 14

C

Question 15

Zip Corp, an electronic goods manufacturer, recently launched a new gaming console at a very low price. The company aims to capture as much of the market as possible by offering rock-bottom prices. It aims to compensate for the loss by increasing the sales volume. In the context of pricing strategies, it is evident that Zip Corp has adopted the strategy of _____.
a. sustained discount pricing
b. high/low pricing
c. penetration pricing
d. loss-leader pricing

Answer 15

C

Question 16

Which of the following identifies how reliably a product delivers its promised level of quality?
a. The life cycle of the product
b. The product consistency
c. The primary features of the product
d. The augmented benefit that the product offers

Answer 16

B

Question 17

A fitness equipment manufacturing company initiates its new product development process. The management, along with the product design team of the company, makes estimated cost budgets for each of the potential products. This is an important part of the process as it helps the management in assessing whether the company can afford the new product. In the context of the given scenario, the company is most likely in the _____ stage of the new product development process.
a. analysis
b. development
c. testing
d. idea screening

Answer 17

A

Question 18

Ransome Technologies, a laptop manufacturer, released a new laptop model priced at $800 to attract customers who could afford to pay the high price. After a few months, it introduced low-priced versions of the same laptop to attract new buyers. By doing so, it maximized profitability by targeting different segments of the market. In this scenario, Ransome Technologies has used the _____ strategy.
a. skimming pricing
b. penetration pricing
c. everyday-high pricing
d. loss-leader pricing

Answer 18

A

Question 19

Coffee Bean Enterprises is an independent distributor that distributes coffee machines and water purifiers to firms on a large scale. In addition to taking legal possession of the goods it distributes, the company also provides a complete array of services that includes warehousing, shipping, product repairs, and credit to its business buyers. In this scenario, it can be said that Coffee Bean Enterprises is a(n) _____.
a. broker
b. store retailer
c. agent
d. merchant wholesaler

Answer 19

D

Question 20

National Pen Corporation (NPC), a pen manufacturing company, sometimes gives away some of its gel pens practically for free but reaps handsome profits as customers buy pen refills. In the context of pricing strategies, it is evident that NPC has adopted the strategy of _____.
a. loss-leader pricing
b. penetration pricing
c. everyday-low pricing
d. skimming pricing

Answer 20

A

Question 21

Tammi K. Products, a makeup company based in New York, introduces a range of cream-based lipsticks. It puts up booths in all the high-end malls of the city where it allows the visitors to sample the new products. In the context of product adoption and diffusion, Tammi K. Products illustrates the characteristic of:
a. adaptability
b. compatibility
c. observability
d. trialability

Answer 21

D

Question 22

Health Help, a company manufacturing health supplements, puts its advertisements in a popular health and fitness blog. The advertisements seamlessly blend in with the overall theme of the blog and almost look like a part of the platform. Which of the following strategies has Health Help implemented in this scenario?
a. Guerilla marketing
b. Sponsorship
c. Native advertising
d. Product placement

Answer 22

C

Question 23

_____ involves using all the media platforms to promote a product.
a. Viral marketing
b. Integrated marketing communication
c. Linear marketing
d. Social marketing intelligence

Answer 23

B

Question 24

An advantage of cobranding is that:
a. it ensures greater consistency in products.
b. both partners leverage their strengths to enter new markets.
c. multiple products can be marketed at the same price.
d. both companies enjoy limited liability.

Answer 24

B

Question 25

Food Mart is a supermarket that sells good quality products and renders excellent client service. Food Mart’s membership program for regular clients offers good discounts on perishable products. Its popularity and business generally increase through word-of-mouth. Consumers who shop at Food Mart rarely switch to another supermarket for their monthly grocery shopping. In the context of marketing, which of the following concepts does this scenario best illustrate?
a. Cognitive dissonance
b. Marketing mix
c. Market segmentation
d. Customer loyalty

Answer 25

D

Question 26

Malibu is a store retailer that sells a complete selection of food products, such as meat, cereals, processed foods, baked goods, and dairy products at a steep discount at a single location. It also offers a wide range of general merchandise, such as cosmetics and clothes almost at the same discount as food products. It is evident that Malibu is a _____.
a. discount store
b. convenience store
c. supercenter
d. supermarket

Answer 26

C

Question 27

Ontime Delivery Corp. drives perishable goods, such as eggs, bread, and muffins to small grocery stores. In addition to taking legal title of the goods it distributes, Ontime Delivery Corp. also checks the stock and suggests reorder quantities to the grocery stores. It is evident that Ontime Delivery Corp. is a(n) _____.
a. truck jobber
b. drop shipper
c. broker
d. agent

Answer 27

A

Question 28

John is starting a new business. He selects his target market by identifying similar characteristics, attributes, and behaviors of customers and then grouping them accordingly. Which of the following strategies has John employed?
a. Customer relationship management
b. Place marketing
c. People marketing
d. Market segmentation

Answer 28

D

Question 29

Determine the fixed cost of a pencil manufacturing company per year if its breakeven point is 300,000 packets of pencils, selling price of each packet of pencil is $3, and the cost of equipment and labor to manufacture one packet of pencil is $1.
a. $400,000
b. $600,000
c. $500,000
d. $300,000
Formula= Fixed Cost = Total Cost – (Variable Cost Per Unit * Units Produced)

Answer 29

B

Question 30

CB Motors is a high-end car manufacturer. It sells its cars to the public through only one retail outlet in the city of Ashland. In addition to selling cars, the retail outlet also provides exceptional service to its customers. In the context of distribution strategies, CB Motors has adopted the strategy of _____.
a. selective distribution
b. intensive distribution
c. exclusive distribution
d. random distribution

Answer 30

C

Question 31

In the growth stage of the product life cycle, competition:
a. spurs major price cuts, which dramatically cut into profits.
b. is virtually nonexistent.
c. decreases with many weaker firms already leaving the market.
d. begins as firms enter the market with new variations of existing products.

Answer 31

D

Question 32

Tommy Drake is a politician who leads campaigns for organic foods in the rural counties of her country. Several farmers in different areas have started organic farming because of the popularity of Drake’s campaigns; even uneducated people trust the advantages of the campaign because of Drake’s involvement in it. Which of the following marketing strategies does this scenario best illustrate?
a. Idea marketing
b. People marketing
c. Place marketing
d. Event marketing

Answer 32

B

Question 33

Imperial Corp. is an independent distributor that distributes cosmetics, apparels, shoes, and bags to other business customers on a large scale. It does not take legal title to the goods it distributes. In this scenario, it can be said that Imperial Corp. is a(n) _____.
a. broker
b. end user
c. retailer
d. merchant wholesaler

Answer 33

A

Question 34

The characteristics of a product that a marketer offers are known as _____.
a. product visions
b. product facets
c. product features
d. product qualities

Answer 34

C

Question 35

Identify and describe one of the three business market segmentation types. In addition, use real-world examples to show how companies use the one business segmentation type you selected.

Answer 35

geographic- refers to dividing the market based on the concentration of customers.
product base- refers to dividing the market based on how customers will use the product.
customer base - refers to dividing the market based on the characteristics of customers.

Question 36

Identify and describe two consumer market segmentation types. In addition, use real-world examples to show how companies use the two consumer segmentation types you selected.

Answer 36

psychographic - Dividing the market into smaller groups based on consumer attitudes, interests, values, and lifestyles.
geographic - Dividing the market into smaller groups based on where consumers live. This process can incorporate countries, cities, or population density as key factors.
demographic - Dividing the market into smaller groups based on measurable characteristics about people, such as age, income, ethnicity, and gender.
behavior- Dividing the market based on how people behave toward various products. This category includes both the benefits that consumers seek from products and how consumers use the products.