Chapter 1: Defining Marketing for the 21st Centuryecarter2/FALL 07 MP/MK… · Web view ·...

MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS

*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***

Chapter 1: Defining Marketing for the 21st Century

GENERAL CONCEPT QUESTIONS

Multiple Choice

1. Good marketing is no accident, but a result of careful planning and ________.a. executionb. sellingc. strategiesd. tacticse. research

Answer: a Page: 4 Level of difficulty: Medium

2. Marketing is both an “art” and a “science”—there is constant tension between the formulated side of marketing and the ________ side.a. creativeb. sellingc. managementd. forecastinge. behavior

Answer: a Page: 4 Level of difficulty: Easy

3. The most formal definition of marketing is ________. a. meeting needs profitablyb. identifying and meeting human and social needsc. the 4Ps (Product, Price, Place, Promotion)d. an organizational function and a set of processes for creating, communicating, and delivering,

value to customers, and for managing customer relationships in ways that benefit the organization and its stake holders.

e. improving the quality of life for consumersAnswer: d Page: 6 Level of difficulty: Medium

4. Marketing management is ________.a. managing the marketing processb. monitoring the profitability of the companies products and servicesc. selecting target marketsd. developing marketing strategies to move the company forwarde. the art and science of choosing target markets and getting, keeping, and growing customers

through creating, delivering, and communicating superior customer valueAnswer: e Page: 6 Level of difficulty: Easy

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***5. A transaction involves ________.

a. at least two partiesb. each party has something that might be of value to the other partyc. each party is capable of communication and deliveryd. each party is free to accept or reject the exchange offere. all of the above

Answer: e Pages: 6–7 Level of difficulty: Medium

6. ________ goods constitute the bulk of most countries’ production and marketing efforts.a. Durableb. Impulsec. Physicald. Servicee. Event

Answer: c Page: 8 Level of difficulty: Medium

7. ________ can be produced and marketed as a product.a. Informationb. Celebritiesc. Durable goodsd. Organizationse. Properties


8. Charles Revson of Revlon observed: “In the factory, we make cosmetics; in the store, ________.”a. we make profitsb. we challenge competitorsc. we implement adsd. we sell hopee. we sell quality

Answer: d Page: 9 Level of difficulty: Easy

9. A ________ is someone seeking a response (attention, a purchase, a vote, a donation) from another party, called the ________.a. salesperson, customerb. fund raiser, contributorc. politician, voterd. marketer, prospecte. celebrity, audience

Answer: d Page: 10 Level of difficulty: Hard

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***10. In ________—consumers may share a strong need that cannot be satisfied by an existing product.

a. negative demandb. latent demandc. declining demandd. irregular demande. non-existent demand

Answer: b Page: 10 Level of difficulty: Medium

11. In ________—more customers would like to buy the product than can be satisfied.a. latent demandb. irregular demandc. overfull demandd. excessivee. negative demand


12. Marketers often use the term ________ to cover various groupings of customers.a. people b. buying powerc. demographic segment d. social class position e. market

Answer: e Page: 10 Level of difficulty: Hard

13. Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and athletic shoes and equipment spend a great deal of time trying to establish a superior brand image in markets called ________. a. business marketsb. global marketsc. consumer marketsd. nonprofit and governmental marketse. service markets


14. In business markets, advertising can play a role, but a stronger role may be played by the sales force, ________, and the company’s reputation for reliability and quality.a. brand imageb. distributionc. promotiond. pricee. performance


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***15. Global marketers must decide ________.

a. which countries to enterb. how to enter each country (as an exporter, licenser, joint venture partner, contract manufacturer, or

solo manufacturer)c. how to adapt their product and service features to each countryd. how to price their products in different countriese. all of the above

Answer: e Pages: 11–12 Level of difficulty: Medium

16. Mohan Sawhney has proposed the concept of ________ to describe a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries.a. metamarketb. vertical integrationc. horizontal integrationd. betamarkete. synchronized marketing

Answer: a Page: 12 Level of difficulty: Hard

17. The ________ promises to lead to more accurate levels of production, more targeted communications, and more relevant pricing.a. Age of Globalizationb. Age of Deregulationc. Industrial Aged. Information Agee. Production Age

Answer: d Page: 13 Level of difficulty: Medium

18. Many countries have ________ industries to create greater competition and growth opportunities.a. open-marketb. deregulatedc. regulatedd. scientifically segmented e. created mass market


19. Customers are showing greater price sensitivity in their search for ________.a. the right productb. the right servicec. the right stored. valuee. relationships


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***20. Rising promotion costs and shrinking profit margins are the result of ________.

a. changing technologyb. globalizationc. deregulationd. privatizatione. heightened competition


21. Industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of two or more industries—this is called ________.a. globalizationb. customizationc. industry convergenced. heightened competitione. acquisition


22. In response to giant retailers and category killers, entrepreneurial retailers are building entertainment into stores with coffee bars, lectures, demonstrations, and performances. They are marketing a(n) ________ rather than a product assortment.a. experienceb. customer valuec. customer delightd. total service solutione. intangible benefit(s)


23. In response to threats from such companies as AOL, Amazon, Yahoo, eBay, E’TRADE, and dozens of others, established manufacturers and retailers became “brick-and-click” oriented by adding online services to their existing offerings. This process became known as ________. a. reintermediationb. disintermediationc. e-commerced. e-collaboratione. new market synchronization


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***24. Many brick-and-click competitors became stronger contenders in the marketplace than the pure-click

firms because they had a larger pool of resources to work with and ________.a. better pricesb. greater valuec. well-established brand namesd. one-on-one communicationse. direct selling capability


25. The ________ is practiced most aggressively with unsought goods, goods that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots.a. marketing conceptb. selling conceptc. production conceptd. product concepte. holistic marketing concept


26. The ________ concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.a. productb. marketingc. productiond. selling e. holistic marketing


27. The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products.a. productionb. sellingc. marketingd. producte. holistic marketing


28. Several scholars have found that companies who embrace the marketing concept achieve superior performance. This was first demonstrated for companies practicing a ________—understanding and meeting customers’ expressed needs.a. reactive market orientationb. proactive marketing orientationc. total market orientationd. impulsive market orientatione. holistic market orientation

Answer: a Page: 16 Level of difficulty: Medium29. According to Theodore Levitt, who drew a perceptive contrast between the selling and marketing

concepts, ________ is preoccupied with the need to convert products into cash.a. marketingb. sellingc. direct marketingd. holistic marketing e. service marketing


30. In the course of converting to a marketing orientation, a company faces three hurdles—________.

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***a. organized resistance, slow learning, and fast forgettingb. management, customer reaction, competitive responsec. decreased profits, increased R&D, additional distributiond. forecasted demand, increased sales expense, increased inventory costse. customer focus, profitability, slow learning


31. Companies that practice both a reactive and proactive marketing orientation are implementing a ________ and are likely to be the most successful.a. total market orientationb. external focusc. customer focusd. competitive, customer focuse. confrontation process


32. Marketers argue for a ________ in which all functions work together to respond to, serve, and satisfy the customer.a. cross-functional team orientationb. collaboration modelc. customer orientationd. management-driven organizatione. total quality model


33. ________ can be seen as the development, design, and implementation of marketing programs, processes, and activities that recognizes the breadth and interdependencies of their effects. a. Niche marketingb. Holistic marketingc. Relationship marketingd. Supply-chain marketinge. Demand-centered marketing

Answer: b Page: 17 Level of difficulty: Medium34. ________ marketing has the aim of building mutually satisfying long-term relations with key parties

such as customers, suppliers, distributors, and other marketing partners in order to earn and retain their business.a. Holistic b. Demand-based c. Direct d. Relationshipe. Synthetic

Answer: d Pages: 17–18 Level of difficulty: Easy

35. Companies who form a ________ collect information on each customer’s past transactions, demographics, psychographics, and media and distribution preferences.a. sales networkb. holistic unionc. marketing networkd. supply-chain networke. integrated network

Answer: c Page: 18 Level of difficulty: Hard

36. The ability of a company to deal with customers one at a time has become practical as a result of advances in ________, computers, the Internet, and database marketing software. a. improved communication flow

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***b. information technologyc. just-in-time manufacturingd. factory customizatione. customer-centered strategies


37. One traditional depiction of marketing activities is in terms of the marketing mix or four Ps. The four Ps are characterized as being ________.a. product, positioning, place, and priceb. product, production, price, and placec. promotion, place, positioning, and priced. place, promotion, production, and positioning e. product, price, promotion, and place

Answer: e Page: 19 Level of difficulty: Easy

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***38. The four Ps represent the sellers’ view of the marketing tools available for influencing buyers. From a

buyer’s point of view, each marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that the sellers’ four Ps correspond to the customers’ four Cs. The four Cs are ________.a. customer focus, cost, convenience, and communicationb. customer solution, customer cost, convenience, and communicationc. convenience, control, competition, and costd. competition, cost, convenience, and communicatione. category control, cost, concept development, and competition

Answer: b Pages: 19–20 Level of difficulty: Medium

39. Holistic marketing incorporates ________, ensuring that everyone in the organization embraces appropriate marketing principles, especially senior management.a. profit objectivesb. share of customerc. internal marketingd. the marketing mixe. strategic planning


40. Marketing is not a department so much as a ________.a. company orientationb. philosophyc. functiond. branch of managemente. branch of economics


41. Holistic marketing incorporates ________ and understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs. a. safe product designb. cultural marketingc. social responsibility marketingd. cross-functional teamse. direct sales policies


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***42. The ________ holds that the organization’s task is to determine the needs, wants, and interests of

target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.a. customer-centered businessb. focused business modelc. societal marketing conceptd. ethically responsible marketing managere. production-centered business


43. Companies see ________ as an opportunity to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase press coverage.a. cause-related marketingb. brand marketingc. equity marketingd. direct marketinge. recognition marketing


44. When a customer has a(n) ________ need he/she 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: 24 Level of difficulty: Hard

45. When a customer has a(n) ________ need the customer wants to be seen by friends as a savvy consumer.a. real b. unstated c. delightd. secrete. stated


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***46. During market segmentation analysis, the marketer identifies which segments present the greatest

opportunity. These segments are called ________.a. target marketsb. primary marketsc. tertiary marketsd. demographic marketse. focused markets


47. For each target market, the firm develops a ________. The offering is positioned in the minds of the target buyers as delivering some central benefit(s).a. value offeringb. niche offeringc. market offeringd. segment offeringe. social offering


48. ________ reflects the perceived tangible and intangible benefits and costs to customers. a. Loyaltyb. Satisfactionc. Valued. Expectationse. Comparison shopping


49. If a marketer decides to use warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using what is called a ________.a. service channelb. distribution channelc. brand channeld. relationship channele. intermediary channel


50. ________ includes all the actual and potential rival offerings and substitutes that a buyer might consider.a. Competitionb. The product offeringc. A value propositiond. The supply chaine. The marketing environment


51. The ________ includes the immediate actors involved in producing, distributing, and promoting the offering. The main actors are the company, suppliers, distributors, dealers, and the target customers.a. operations environmentb. management environmentc. strategic environmentd. task environmente. tactical environment


52. The ________ process consists of analyzing marketing opportunities; selecting target markets; designing marketing strategies; developing marketing programs; and managing the marketing effort.

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***a. marketing planningb. strategic planningc. market researchd. opportunity analysise. share of customer


53. David Packard of Hewlett-Packard once said, “Marketing is far too important to leave to ________.”a. the advertising boysb. uninformed managersc. novicesd. the CEOe. the marketing department

Answer: e Page: 27 Level of difficulty: Medium

54. Some companies are now switching from being solely product-centered (with product managers and product divisions to manage them) to being more ________ centered. a. competencyb. strategyc. marketingd. customer-segmente. sales


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***55. Companies are recognizing that much of their market value comes from ________, particularly their

brands, customer base, employees, distributor and supplier relations, and intellectual capital.a. variable assets b. the value propositionc. intangible assetsd. tangible assetse. customer preferences

Answer: c Page: 28 Level of difficulty: Easy

56. ________ can increasingly be conducted electronically, with buyer and seller seeing each other on their computer screens in real time.a. Public relationsb. E-commercec. Advertisingd. Personal sellinge. Mass marketing


57. Top management is going beyond sales revenue alone to examine the marketing scorecard to interpret what is happening to ________.a. market shareb. customer loss ratec. customer satisfactiond. product qualitye. all of the above


58. At the heart of any marketing program is the ________—the firm’s tangible offering to the market.a. service offer b. productc. sales support teamd. packaginge. auxiliary offer


59. ________ activities are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the brands they sell. a. Consumer behavior b. Market segmentationc. Marketing research d. Marketing communicatione. New product development

Answer: d Page: 30 Level of activity: Medium

60. Marketing evaluation and ________ processes are necessary to understand the efficiency and effectiveness of marketing activities and how both could be improved. a. controlb. analysisc. measurementd. feedbacke. consumer behavior


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Chapter 3: Gathering Information and Scanning the Environment


Multiple Choice

1. The major responsibility for identifying significant marketplace changes falls to the ________. a. U.S. Department of Laborb. company’s marketersc. American Marketing Associationd. industry lobby groups found in Washington, D.C.e. marketing research industry

Answer: b Page: 72 Level of difficulty: Easy

2. Marketers have extensive information about how consumption patterns vary across countries. On a per capita basis within Western Europe, the ________ smoke the most cigarettes. a. Swissb. Greeksc. Irish d. Austrianse. French


3. All of the following questions EXCEPT ________, would be considered to be forms of information needs probes. a. What decisions do you regularly make?b. What information do you need to make decisions?c. What data analysis programs would you want?d. What magazines and trade reports would you like to see on a regular basis?e. What products would be most closely matched to consumer needs?


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***4. ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and

distribute needed, timely, and accurate information to marketing decision makers.a. A marketing information systemb. A marketing research systemc. A marketing intelligence systemd. A promotional campaigne. A marketing database


5. The company’s marketing information system should be a cross between what managers think they need, what managers really need, and ________.a. what the marketing research department is able to dob. what consumers are willing to sharec. what the competition is doingd. what is acceptable industry practice e. what is economically feasible


6. Marketing managers rely on internal reports. By analyzing this information, they can spot ________. a. micro-marketsb. opportunities and problemsc. macro-marketsd. competitive strategiese. consumer demographic units


7. The heart of the internal records system is the ________. a. databaseb. asset acquisition processc. order-to-payment cycle d. service consideratione. information liquidity ratio


8. When a marketer “mines” his or her company’s database, fresh insights can be gained into neglected customer segments, ________, and other useful information. a. recent customer trendsb. long-term competitive trendsc. possible new inventionsd. possible new technologiese. new primary data possibilities


9. The internal records system supplies results data, but the marketing intelligence system supplies ________ data. a. concurrentb. secondary c. researchd. happeningse. premium


10. A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. a. marketing research system

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***b. marketing information systemc. product management systemd. marketing intelligence systeme. vertical system


11. A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors’ published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence. a. sales force surrogatesb. intermediariesc. external networks d. advisory panelse. customer feedback systems

Answer: c Pages: 74–75 Level of difficulty: Hard

12. All of the following would be considered to be steps to improve the quality of marketing intelligence in a company EXCEPT ________. a. a company can train and motivate the sales force to spot and report new developmentsb. a company can use guerrilla tactics such as going through a competitor’s trashc. a company can motivate intermediaries to pass along important informationd. a company can network externallye. a company can purchase information from outside suppliers

Answer: b Pages: 74–76 Level of difficulty: Easy

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***13. The 2000 U.S. census provides an in-depth look at the population swings, demographic groups,

regional migrations, and changing family structure of 281+ million people. Which of the following steps to improve the quality of company marketing intelligence system would be most closely associated the above illustration? a. A company can purchase information from outside suppliers.b. A company can take advantage of government data sources.c. A company can use online customer feedback systems to collect data.d. A company can network externally.e. A company can use its sales force to collect and report data.


14. There are four main ways that marketers can find relevant online information on competitors’ products and weaknesses, and summary comments and overall performance rating of a product, service, or supplier. ________ is(are) a type of site that is concentrated in financial services and high-tech products that require professional knowledge. a. Independent customer goods and service reviewsb. Distributor or sales agent feedback sitesc. Combo-sites offering customer reviews and expert opinionsd. Customer complaint sitese. Shopping bot service sites


15. A ________ is “unpredictable, short-lived, and without social, economic, and political significance.”a. fadb. fashionc. trendd. megatrende. style


16. A ________ is a direction or sequence of events that has some momentum and durability; the

shape of the future is revealed and many opportunities are provided.

a. fadb. fashionc. trendd. megatrende. style


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***17. ________ have been described as “large social, economic, political and technological changes

[that] are slow to form, and once in place, they influence us for some time—between seven and ten

years, or longer.

a. Fadsb. Fashionsc. Trendsd. Megatrendse. Styles


18. Which of the following minority groups in the United States has been associated with one of the ten megatrends shaping the consumer landscape? a. African Americansb. Asian Americansc. European Americansd. Hispanic Americanse. Middle Eastern Americans


19. The beginning of the new century brought a series of new challenges. All of the following would

be considered to be among those challenges EXCEPT ________.

a. a deterioration of innovative ideasb. steep decline of the stock marketc. increasing unemploymentd. corporate scandals e. the rise of terrorism


20. With the rapidly changing global picture, the firm must monitor six major forces. All of the following would be among those forces EXCEPT ________.

a. demographicb. economicc. social-culturald. naturale. promotional


21. The main demographic force that marketers monitor is(are) ________.

a. suppliersb. competitorsc. communication (such as advertising)d. government reports dealing with birth rates e. population


22. The population explosion has been a source of major concern. Unchecked population growth and consumption could eventually result in all of the following EXCEPT ________.

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***a. insufficient food supplyb. depletion of key mineralsc. overcrowdingd. restrictions on competitione. pollution


23. One impact of explosive population growth is illustrated by the case of China. The Chinese government passed regulations limiting families to one child. One consequence of these regulations is that ________. a. the children are so fussed over and spoiled that they become “little emperors”b. school enrollments are droppingc. the fledgling automotive business in China will not have customers in a few yearsd. open rebellion is being preachede. “child-oriented businesses” have few customers


24. A significant fact about population growth and population shifts is that in 2004 or 2005, ________.a. the youth market will exceed that of the adult marketb. people over the age of 60 will outnumber those under five years of age c. baby boomers will be eclipsed by Gen X young adultsd. most age group segments will be about equale. Gen Y young adults will surpass the baby boomers as the largest age segment


25. Which of the following age groups is thought to control three-quarters of the country’s wealth? a. 0–20 age segmentb. 60+ age segmentc. 20–30 age segmentd. 30–40 age segmente. 40+ age segment


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***26. At one time the United States was called a “melting pot” society because of the number of different

cultures that were integrated into the U.S. culture. Today, the United States is described as a ________ society because many ethnic groups are maintaining their ethnic differences, neighborhoods, and cultures. a. “boiling pot”b. “salad bowl”c. “banana split”d. “doubled up”e. “non-communicative”


27. According to the 2000 census, the U.S. population of 276.2 million was 72 percent white and ________ percent African American. The remainder consisted of Hispanic Americans and other minorities. a. 20 b. 18c. 15d. 13e. 11


28. Diversity goes beyond ethnic and racial markets. More than ________ million Americans have disabilities, and they constitute a market for home delivery companies (and others). a. 50 b. 40c. 30d. 20e. 10


29. Which of the following countries is known for having 99 percent of its population literate? a. Englandb. Germanyc. Franced. United Statese. Japan


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***30. The ________ household consists of a husband, wife, and children (and sometimes grandparents).

a. “traditional”b. “extended”c. “diversity”d. “modern”e. “revised”


31. Married couple households—the dominant cohort since the formulation of the United States—has slipped from nearly 80 percent in the 1950s to around ________ percent today. a. 70b. 60c. 50d. 40e. 35


32. The twenty-first century saw ________ markets grow more rapidly again due to a higher birth rate, a lower death rate, and rapid growth from foreign immigration. a. suburbanb. urbanc. rurald. coastale. secondary


33. The movement by population to the ________ has lessened the demand for warm clothing and home heating equipment and increased demand for air conditioning. a. Grainbeltb. Pacific Northwestc. Sunbeltd. Mid-Coastal arease. Heartland


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***34. Marketers look at where consumers are gathering. Almost one in ________ people over the age of five

(120 million) moved at least one time between 1995 and 2000, according to a Census 2000 brief. a. twob. threec. four d. fivee. ten

Answer: a Page: 85 Level of difficulty: Hard 35. In which of the following economies would we expect to find few opportunities for marketers?

a. Industrializing economies.b. Land-locked economies.c. Raw-material-exporting economies.d. Industrial economies.e. Subsistence economies.

Answer: e Page: 86 Level of difficulty: Easy36. According to information presented in the text, which of the following countries is surprisingly a very

good market for Lamborghini automobiles (costing more than $150,000) because of the number of wealthy families that can afford expensive cars. a. Greeceb. Switzerlandc. Hollandd. Russiae. Portugal


37. Over the past three decades in the United States, the rich have grown richer and the middle class has ________. a. stayed about the sameb. shrunkc. increased slightlyd. matched the rich in terms of relative growthe. been ignored because of problems with the poorer classes


38. ________ shapes the beliefs, values, and norms that largely define the tastes and preferences. a. Marketingb. The mass mediac. Governmentd. Production innovation and engineeringe. Society


39. If a consumer lives the lifestyle of a “pleasure seeker” or goes on a “self-realization” quest, he or she is expressing what is called ________. a. views of othersb. views of societyc. views of themselvesd. views of organizationse. views of the universe

Answer: c Pages: 87–88 Level of difficulty: Easy

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***40. According to the information found in the social-cultural environment, with respect to views of others,

________ are considered to be things that allow people who are alone to feel they are not (e.g., television, home video games, and chat rooms on the Internet). a. social surrogatesb. subliminal fantasiesc. relationship avoidanced. primary productse. secondary products


41. Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest. Such a view would be consistent with which of the following views?

a. Views of others.b. Views of organizations.c. Views of themselves.d. Views of the universe.e. Views of society.


42. People vary in their attitudes toward their society. ________ usually live more frugally, drive smaller cars, and wear simpler clothing. a. Makersb. Escapersc. Seekersd. Changerse. Developers


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***43. People vary in their attitudes toward society and react accordingly. ________ are a major market for

movies, music, surfing, and camping. a. Makersb. Preservers c. Escapersd. Changers e. Developers


44. All of the following have been cited by the text as being among Americans’ core values EXCEPT ________. a. they believe in workb. they believe in getting marriedc. they believe in giving to charityd. they believe in being honeste. they believe in sexual permissiveness


45. Which of the following would be the best illustration of a secondary belief or value? a. Belief in work.b. Belief in giving to charity.c. Belief in getting married.d. Belief in getting married early.e. Belief in being honest.


46. Which of the following is by far the most popular American leisure activity in that it is preferred by 59 percent of adults who participate in such activities? a. Gardening.b. Walking for exercise.c. Swimming.d. Photography. e. Jogging or running.


47. Each society contains ________, groups with shared values emerging from their special life experiences or circumstances. a. demographic segmentsb. cliquesc. consumer bundlesd. subculturese. behavioral niches


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***48. Which of the following would be the best illustration of a subculture?

a. A softball team.b. A university alumni association.c. Teenagers.d. A Boy Scout troop.e. Frequent flyers.


49. All of the following EXCEPT ________ have been found to influence young people today and cause a shift of secondary cores values for this group. a. U2’s Bono.b. Elvis Presley.c. The NBA’s LeBron James.d. Golf’s Tiger Woods.e. Skateboarder Tony Hawk.


50. Although core values are fairly persistent, cultural swings do take place. ________ caused such a swing in the 1960s. a. Ford Motor Companyb. George McGovernc. G.I. Joe action charactersd. The infomerciale. The Beatles


51. Marketers need to be aware of threats and opportunities associated with four trends in the natural environment. All of the following are among those trends EXCEPT ________. a. the shortage of raw materialsb. the increased cost of energyc. near 90 percent corporate support for “green causes”d. increased pollution levelse. the changing role of governments


52. With respect to the shortage of raw materials, air and water are classified as ________ resources. However, as we know, problems are beginning to plague both our air and water quality. a. infiniteb. near finitec. finite renewabled. finite nonrenewable e. absolute


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***53. One finite nonrenewable resource, ________, has created serious problems for the world economy.

Because of anticipated shortages, investment and commodity markets have had wild swings. a. waterb. airc. sugard. coffeee. oil


54. From a branding perspective, “green marketing” programs have not been entirely successful. ________ has been cited as one of the obstacles that must be overcome for “green marketing” programs to be more successful. a. Overexposure and lack of credibility b. High costc. Poor promotionsd. Resistance by the youth segment in the marketplace e. Lack of support by governmental agencies and concerns


55. Which of the following countries is noted for their “green movement” and support within its government for environmental quality enhancement? a. Mexicob. Chinac. Germanyd. Englande. Italy


56. The marketer should monitor the following trends in technology, EXCEPT ________, if progress is to be made in business.

a. the pace of changeb. the difficulties found in sharing informationc. the opportunities for innovationd. varying R&D budgetse. increased regulation


57. According to some industry analysts and inventors, ________ will eventually eclipse the PC as our most important technological device. a. iPodb. HDTVc. holographic televisiond. the mobile phonee. solar-powered car

Answer: d Page: 92 Level of difficulty: Medium58. All of the following will most likely be among the advantages for a society that embraces

telecommuting as an employment/communication alternative EXCEPT ________. a. reduction of auto pollutionb. bringing the family closer togetherc. increased bonuses and compensation perksd. creating more home-centered shoppinge. entertainment centered on the home environment


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***59. ________ legislation has as its purposes to protect companies from unfair competition, to protect consumers from unfair business practices, and to protect the interests of society from unbridled business behavior.

a. Businessb. Consumerc. Bi-partisand. Activiste. Global


60. An important force affecting business is the ________—a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers. a. lobbyist movementb. consumerist movementc. environmental movementd. self-rights movemente. ethical reform movement


27



Chapter 21: Tapping into Global Markets


Multiple Choice

1. Red Bull has gained ________ of the worldwide energy drink market by skillfully connecting with global youth.

a. 70 percentb. 80 percentc. 60 percentd. 50 percente. 90 percent


2. Red Bull built buzz about the product through its ________.a. “buzz marketing program” b. “in program”c. “marketing program” d. “seeding program” e. “advertising campaign”


3. A global industry is defined as ________.a. an industry in which the strategic positions of competitors are fundamentally

affected by their overall global positionsb. an industry that operates in more than one country and captures R&D, marketing,

and other financial advantages in its costs and reputation.c. an industry that operates in more than one country and has a strategic position in

many countriesd. a firm that operates in more than one country and has a sales and marketing staff

in those countries e. an industry that has strategic positions in many countries but is not affected by

competitionAnswer: a Page: 668 Level of difficulty: Medium

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***4. A global firm is one that ________.

a. where the strategic positions of competitors are fundamentally affected by their overall global positions

b. operates in more than one country and captures R&D, marketing, and other financial advantages in its costs and reputation

c. operates in more than one country and has a sales and marketing staff in those countries

d. operates in more than one country and has a sales and marketing staff in those countries developing

e. has strategic positions in many countries but is not affected by competition researching


5. International trade in 2003 accounted for over ________ of U.S. GDP up from 11 percent in 1970. a. one-third b. one-eighth c. one-halfd. one-quartere. 18 percent


6. Global firms plan, operate, and ________ their activities on a worldwide basis.a. produceb. coordinate c. distribute d. price e. service


7. The major decisions in international marketing include which of the following steps?a. Deciding whether to go abroad.b. Deciding which markets to enter.c. Deciding how to enter the market.d. Deciding on the marketing program.e. All of the above.


8. The internationalization process has four stages. These stages are ________.a. no regular export activitiesb. export via independent representatives (agents)c. establishment of one or more sales subsidiariesd. establishment of production facilities abroade. all are part of the internationalization process


29


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***9. Most firms work with an ________ and enter a nearby or similar country.

a. independent agent b. contractual export department c. import/export departmentd. franchiseee. management contract


10. A “waterfall” approach to international marketing is defined as ________.a. countries that are gradually entered sequentiallyb. countries in which the demand for the product is greatest is entered firstc. countries in which the demand for the product is greatest is entered lastd. countries in which the supply of raw material is greatest is entered firste. countries are entered based upon ease of entry


11. A “sprinkler” approach to international marketing is defined as ________.a. countries that are entered when timing is right b. countries that are gradually entered sequentially c. countries in which the supply of raw material is greatest is entered firstd. countries in which the demand for the product is greatest is entered first e. many countries are entered simultaneously within a limited period of time


12. The developed nations and the prosperous parts of developing nations account for less than ________ of the world’s population. a. 10 percentb. 15 percentc. 20 percent d. 25 percente. 30 percent


13. Marketers must change their conventional marketing to sell their products to developing countries. One of the changes that marketers can make is to ________.a. reduce the price of the product but increase the packaging size b. reduce the size but keep the pricing the samec. reduce the price of the product d. reduce the size and price of the packaging e. increase the price and the packaging size because these countries have never seen

the product beforeAnswer: d Page: 671 Level of difficulty: Medium

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***14. Factors that influence the “attractiveness” of a country to enter include which of the

following?a. product, geography, income and population, political climate, and other factorsb. product, geography, income, climate, and source of incomec. population, incomes, competition, and political climated. incomes, profit potentials, competition, and climatee. incomes, families, competition, and cultural differences


15. Regional economic integration is defined as ________.a. agreements between individual firms for the sake of commerceb. trading agreements between individual countriesc. trading agreements between individual firmsd. trading agreements between countries and firmse. trading agreements between blocs of countries


16. The European Union founded in 1957 added ________ in May 2004 bringing its total membership to

25 countries.

a. 10 countriesb. 5 countriesc. 20 countriesd. 6 countriese. 4 countries


17. NAFTA established a free trade zone between what three countries? a. Canada, Mexico, and South Americab. Canada, Mexico, and Peruc. Mexico, South America, and the United Statesd. Canada, Mexico, and the United Statese. Canada, Mexico, and Japan


18. MERCOSUL is a free trade zone linking which of the following South American

countries?

a. Mexico, Japan, Brazil, and Paraguay b. Mexico, Brazil, and Paraguayc. Brazil, Argentina, and Paraguayd. Canada, Brazil, and Paraguaye. Brazil, Argentina, Paraguay, and Uruguay


31


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***19. The five modes of entry into foreign markets generally flow by increasing

commitment, risk, control, and profit potential as follows ________.

a. indirect exporting, direct exporting, licensing, joint ventures, and direct investment b. direct investment, joint ventures, licensing, direct exporting, and indirect

exporting. c. direct investment, joint ventures, and licensing d. direct investment, joint ventures, licensing, and indirect exportinge. none of the above


20. In choosing which countries to invest in, companies sometimes choose psychic proximity to their own country. Psychic proximity can best be defined as ________.a. countries close to the “host” country in which the company feels comfortable with

the language, laws, and culture b. countries that “mimic” the host country in terms of language and culturec. countries that the host country’s management team have visited d. countries close to the “host” country in which the company feels that they can

infiltrate quickly and profitable e. countries close to the “host” country in which the company can easily transport

their products Answer: a Page: 674 Level of difficulty: Medium

21. The normal way to get involved in an international market is through exporting.

Occasional exporting is defined as ________.

a. when the company carries on exporting activities on the behalf of others b. when the company makes a commitment to expand into particular markets c. when the company works through independent agents d. when the company hires domestic-based agents to negotiate foreign purchasese. a passive level of involvement in which the company exports its products from

time to time Answer: e Page: 674 Level of difficulty: Medium

22. Active exporting takes place when the company ________ to expand into a particular market.

a. forms a “skunk” group b. forms an export department c. hires an agent d. makes an efforte. makes a commitment


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***23. Domestic-based export merchants ________.

a. buy the manufacturer’s products and then sell them abroadb. buy the manufacturer’s products then sell them in the host country c. buy the manufacturer’s products then fine agents and customers in foreign

countries d. seek and negotiate foreign purchases e. carry on exporting activities on behalf of several producers


24. Domestic based export agents perform a valuable service for the companies seeking to enter foreign markets. The primary function of these agents is to ________.

a. carry on exporting activities on behalf of several producers b. buy the manufacturer’s products and then sell them abroadc. buy the manufacturer’s products then sell them in the host country d. seek and negotiate foreign purchases and are paid a commission on those sales e. export products to foreign countries


25. Company’s prefer to enter a country that ranks high on market attractiveness, low in market risks and ________.a. in which it would possesses a competitive advantageb. turn a quick profitc. able to dominate its foreign competitors through superior product design and

performance d. gain a dominate market share within one year of exporting e. increase its foreign market share by 50 percent in one year


26. Indirect export has two advantages for the firm. First in involves less investment for the firm and secondly it ________.a. involves less paperwork b. involves less intrusion by the government c. involves less riskd. involves less people to manage the processe. involves less products and product lines


27. A company can carry on direct exporting in several ways. These include domestic- based export department or division, overseas sales branch or subsidiary, traveling export sales representatives, and ________.a. foreign-based distributors or agentsb. marketing departments based in the foreign countryc. export merchants in foreign countriesd. export management companiese. none of the above


33


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***28. According to the text, Shaper Image receives more than ________ of its online

business form overseas customers. a. 15 percentb. 30 percent c. 25 percent d. 40 percent e. 10 percent


29. “Going abroad” using the Internet has its challenges. One of the challenges that a global marketer may run up against when using the Web are ________.a. cultural restrictions b. language barriersc. pricing proceduresd. monetary exchangese. logistical limitations


30. Licensing is a simple way to become involved in international marketing. In licensing, the licensor issues a license to a foreign company to use a process, trademark, patent, or trade secret for a(n) ________.a. limited period of time b. fee or royalty c. exchange of information or propriety information d. exchange for access to the market placee. exchange for “their” process, trademark, patent, or secret


31. Companies such as Marriott and Hyatt sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for them in foreign countries.a. contract manufacturingb. management contracts c. franchising d. hotel management licensing e. none of the above


34


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***32. In ________, the firm hires local manufacturers to produce the product. This gives

the company less control over the manufacturing process and loss of profits of the manufacturing efficiencies. a. contract manufacturing b. management contracts c. licensing d. franchising e. none of the above


33. A company can enter a foreign market through ________, which is a complete form of licensing in which the company offers a complete brand concept and operating system designed to ensure that the ________ operates according to the requirements of the licensor. a. contract manufactures/licensor b. contract management/firmc. management contracts/firmd. joint venture/firm e. franchising/franchisor


34. The definition of a joint venture company is one ________.a. in which foreign inventors join with local investors where they share ownerships

and control b. in which two people or more own the firm jointly c. where foreign investors join with others to own the firm d. where ownership by local and distant investors in share ownership of a franchisee. where ownership is by investors of foreign firms


35. A joint venture may be necessary or desirable for economic or political reasons. Additionally, a foreign firm might lack the ________, or managerial resources to undertake the venture alone. a. resource, competency b. financial, physical c. financial, willingnessd. political, financiale. political, competency


35


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***36. In an adapted marketing mix, the producers’ ________ the marketing program to

each target market. a. reduce the importance of each element of the marketing program to adjust for cost

differential between countries b. decide on which element of the marketing mix to change/country/target market

prior to entering the country c. adapt the communications message to the host country d. change only one element of the marketing mix/country e. adjust


37. International companies must decide on how much to adapt their marketing strategy to local conditions. At one extreme are companies that use a globally standardized marketing mix worldwide. A standardized marketing mix includes ________.a. a concentric strategy which includes the product, integrated marketing

communications mix, and distribution strategyb. standardization of the product, communication, and distribution channels

promising lowest costs. c. changes only to the product keeping distribution channels and marketing

communications consistent across countries d. changing only the distribution channels to accommodate the host countrye. changes only to the product and communication message


38. The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities. One of the advantages of direct ownership can include economies of scale, creating jobs in the host country, developing deeper relations with local suppliers etcetera and the firm ________.a. retains full control over its investment b. reviews global outreach projectionsc. redefines the business conceptd. reviews the successes from e-commerce e. receives no disadvantages to direct investment


39. Hofstede identifies four cultural dimensions that can differentiate countries. These are individualism versus collectivism, high versus low power distances, masculine versus feminine, and ________.a. customer relationship management versus power distances b. strategic management versus marketing managementc. weak versus strong uncertainty avoidance d. total quality management versus JIT deliveries e. marketing management versus customer relationships


36


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***40. Straight extension of the product means ________.

a. introducing the product to the foreign market without any changes to the product. b. introducing the product to the foreign market without major changes to the

product c. introducing the product to the foreign market with major changes to the product d. introducing the product to the foreign market with no major marketing programe. not introducing the product to the foreign market until changes have been made

Answer: a Page: 678 Level of difficulty: Medium 41. An advantage of global marketing is that it can lower marketing costs, has economies

of scale in production and distribution, can produce consistency in brand image, has the ability to leverage good ideas quickly and efficiently, and ________. a. is easier to adapt to foreign countriesb. allows for the same message to be used worldwidec. allows for individual countries to add their specific needs to the messaged. is easier for corporations to evaluate the marketing messagee. allows for uniformity of marketing practices


42. Product adaptation involves ________.a. altering the product to meet local conditions or preferences b. altering the product to meet minimum acceptable standardsc. changing the product periodicallyd. upgrading the product on a periodic basise. changing the product to meet competition


43. A firm can successful introduce four versions of its products into a foreign country or a firm may select one of these for inclusion. These versions include ________. a. customer version, regional version, and city version b. customer version, country version, and retailer versionc. regional version, country version, city version, and retailer version d. customer version, regional version, city version, and retailer versione. regional version, country version, city version, and market versions

Answer: c Pages: 680–681 Level of difficulty: Easy

44. Product invention consists of creating something new. Backward invention is reintroducing earlier product forms that are well adapted to a foreign country’s needs. Forward invention is ________.a. creating a new product to meet a need in another country b. creating a new product to meet the need in the host country c. understanding the differences between host and foreign country marketsd. increasing the control over the development of new products e. inventing something that yet has a “market”


37


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***45. Companies 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 communicationse. communication adaptation


46. Many multinationals are plagued by the gray market problem. The gray market consists of ________.a. the marketing of products to older consumers b. branded products diverted from normal distribution channels in the country of

product originc. branded products diverted from one country to another d. products being repackaged from the intended country to a diverted countrye. products not having full warranties by the manufacturer


47. If a company adapts or changes both the product and the communications, the company engages in a process called ________.a. straight extension b. marketing communication c. product adaptation d. dual adaptation e. full adaptation


48. The use of media requires international adaptation because media availability varies from country to country. Norway, Belgium, and France do not allow cigarettes and alcohol to be advertised on TB. Austria and Italy regulate TV advertising ________.

a. between the hours of 9 p.m. and 6 a.m.

b. to childrenc. for those under the age of majorityd. regarding content and clarity e. using women in advertising


38


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***49. A Gucci bag sells for $120 in Italy and $240 in the United States. This is an example

of when a firm tries to sell its products abroad. This phenomenon is called a ________.a. strategic marketing pricing problemb. market pricing problemc. tactical pricing problemd. price escalation probleme. transfer pricing problem


50. A firm that charges a price to another unit in the company sets the ________ price for goods that it ships to its foreign subsidiaries.

a. original priceb. transfer price c. margin price d. break-even price e. customer value price


51. The cost escalation problem exists for multinationals and varies from country to country; the question is: How to set prices in different countries? Companies have three choices. One is to set a uniform price everywhere, two is to set a market-based price in each country, and three is to ________. a. set a final “cost plus” price in each country b. set a cost-based price in each country c. let the market dictate price/country d. vary the price/market/country on a daily basis to reflect consumer demand e. set the transfer price at marginal costs = marginal revenue


52. In 2000 Stelco a Canadian steelmaker, successfully fought dumping changes against steelmakers in Brazil and other countries. “Dumping” is defined or occurs when ________.a. a company charges either less than its costs or less than it charges in its home

market b. the company charges less that its costs but more than it charges in its home

market c. the company’s pricing plans are below current domestic prices d. a company must increase its prices/product prior to importing the producte. a company unloads an excess supply of the product at the best possible prices to

the consumer Answer: a Page: 684 Level of difficulty: Easy

39


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***53. The “whole channel concept for international marketing” includes the following

steps________. a. seller to seller’s international marketing headquarters to channels between nations

to channels within foreign nations to final buyers b. seller to marketing headquarters to channels within foreign markets to final buyersc. sellers to channels between nations to final buyersd. sellers to channels within foreign nations to final buyers e. sellers to international markets to channels within foreign nations to final buyers


54. In an increasingly connected, highly competitive global marketplace, government officials, and marketers are concerned with how attitudes and beliefs about their country affect consumer and business decision-making. ________is(are) the mental associations and beliefs triggered by a country. a. Corporate ownership of the firm b. Materials used in manufacturing c. Brand names and trademarks d. Country-of-origin perceptions e. Competitive positions in the marketplace


55. A company has several options when its products are competitively priced but their place of origin turns consumers off. The company can consider ________.a. re-packaging the product to disguise the country of origin b. co-brandingc. reducing their country of origin mentions in their advertisingd. re-branding the product to disguise the country of origin e. co-production with a foreign company that has a better name.


56. Most brands are adapted to some extent to reflect significant differences in ________, ________, competitive forces, and the legal and political environment. a. consumer behavior, brand developmentb. business mission, brand development c. strategy and consumer behavior d. programs and marketing communications e. political and social mores differences


40


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***57. Disadvantages 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 development and the competitive environment; and ________. a. differences in marketing institutionsb. differences in language and consumer expectations c. differences in product performance d. differences in management’s reaction to the marketplace e. none of the above


58. Marketers must also adapt sales promotion techniques to different markets. Several European countries have laws preventing or limiting sales promotion tools such as discounts. In Germany, Lands’ End could not advertise its ________.

a. woman’s bathing suits b. sale price c. close-out specials d. end-of-the-season salee. money-back guarantee


59. Companies can manage their international marketing activities in three ways. These include, through export departments, international divisions, ________. a. or a global organization b. or from a fixed corporate headquarters c. or through a strong marketing department in the “host” country d. and through local marketing efforts e. none of the above Answer: a Page: 688 Level of difficulty: Medium

60. Bartlett and Ghoshal have identified three organizational strategies for international firms. These are: (1) a global strategy treats the world as a single market; (2) a multinational strategy treats the world as a portfolio of national opportunities; and (3) ________.

a. a local strategy standardizes all of the local elementsb. the marketing strategy identifies those elements assigned to a country and uses

those elements plus corporate’s contribution in the marketing plan c. a “glocal” strategy standardizes certain core elements and localizes other elements d. assumes that there are no “local” or multinational differences in formulating the

marketing mix e. none of the above

Answer: c Pages: 689–690 Level of difficulty: Hard

41



Chapter 6: Analyzing Consumer Markets


Multiple Choice

61. Marketers are always looking for emerging trends that suggest new marketing opportunities. One such trend is the “metrosexual.” Which of the following items would the metrosexual most likely have some interest for? a. An IBM computer.b. Tickets to WWF wrestling.c. Saxophone lessons.d. An all-over body spray by Axe.e. Cowboy boots made from elephant hide.


2. ________ is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.a. Target marketingb. Psychographic segmentationc. Psychologyd. Consumer behaviorf. Product differentiation


3. The fundamental determinant of a person’s wants and behavior is the person’s ________. a. psycheb. national originc. cultured. peer groupe. family tree


4. A child growing up in the United States is exposed to all of the following values EXCEPT ________.a. achievement and successb. activityc. efficiency and practicality

42


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***d. the importance of the group in daily lifee. freedom


43


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***5. Which of the following would be the best illustration of a subculture?

a. A religion.b. A group of close friends.c. Your university.d. A fraternity or sorority. e. Your occupation.


6. With respect to facts about the American consumer, which of the following consumer electronics is owned by the vast majority of consuming households with a 93 percent reporting ownership?

a. A personal computer.b. TiVo DVR.c. A cellular phone.d. A microwave oven. e. A VCR.


7. ________ is defined as being relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior. a. Cultureb. Subculturec. Social classd. The familye. A group


8. Social classes show distinct product and brand preferences in all the following areas EXCEPT ________.

a. clothingb. home furnishingsc. leisure activitiesd. automobilese. fast food


9. A person’s ________ consist(s) of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior. a. cultureb. subculturec. psychographicsd. reference groupse. demographics


10. A(n) ________ group is one whose values or behavior an individual rejects.

44


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***a. aspirational b. disassociativec. membershipd. primarye. procreational


11. If a direct mail marketer wished to direct promotional efforts toward the family of ________, efforts need to be directed toward parents and siblings of the family members. a. orientation b. procreationc. immediacyd. intimacye. reference


12. Expected to account for a quarter of the U.S. population by 2050, ________ are the fastest growing minority.a. African Americansb. Asian Americansc. Hispanic Americansd. European Americanse. Arabic Americans


13. The dominant cohort, with respect to families, for the next fifty years may very well be the ________ cohort. a. married-couple householdb. single adultsc. single seniorsd. married seniorse. married-couples with parents living with them


14. Husbands and wives display different decision-making roles in most families. The trend for

dominant decision making in families is for ________ to be responsible for most of the decisions.

a. the husbandb. the wifec. joint decision making (both husband and wife)d. holistic decision makinge. child-oriented decision making


45


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***15. The Disney Channel has become the company’s cash cow for its ability to reach the

underserved ________ market—8- to 14-year-olds. a. teenb. twixtc. mid-d. tweene. young adult


16. People choose products that reflect and communicate their role and actual or desired ________ in society. a. groupb. statusc. attitudesd. beliefse. feelings


17. Consumption may be shaped by ________ (such as marriage, childbirth, or divorce). a. the psychological life cycleb. the product life cyclec. the life/death life cycled. post-puberty cyclese. critical life events or transitions


18. Product choice is greatly affected by economic circumstances. All of the following would be among those circumstances EXCEPT ________. a. spendable incomeb. savings and assetsc. debtsd. occupatione. borrowing power


19. ________ is a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. a. Imageb. Personalityc. Beliefsd. Hereditye. Culture


46


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***20. When the Marlboro Man was depicted in advertising as a rugged outdoor, tough

cowboy type, this was done to establish what is called a ________. a. trademarkb. brand namec. brand personalityd. psychological approach to advertising e. brand reference


21. ________ portrays the “whole person” interacting with his or her environment. a. Attitudeb. Reference groupc. Lifestyled. Culturee. Subculture


22. Consumers today are experiencing a time famine because of their busy lifestyles. One way to avoid the difficulties of time famine, which is of particular interest to marketers, is ________. a. to set fewer goalsb. to multitaskc. to give in to personal burdensd. to report frustration to managemente. to develop a callous attitude toward marketers


23. With respect to understanding consumer behavior, there are four key psychological processes. All of the following would be among those processes EXCEPT ________. a. motivationb. perceptionc. learningd. self-reliancee. memory


24. A ________ when it is aroused to a sufficient level of intensity. a. need becomes a motiveb. motive becomes a needc. desire becomes a realityd. unfulfilled demand becomes a crisise. personal demand exceeds the ability to rationally reject


47


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***25. ________ assumed that the psychological forces shaping people’s behavior are

largely unconscious, and that a person cannot fully understand his or her own motivations. a. Abraham Maslowb. Frederick Herzbergc. Sigmund Freudd. John Cacioppoe. Karl Marx


26. Frederick Herzberg developed a ________ that distinguishes dissatisfiers and satisfiers. a. trait-role theoryb. psychological constraint theoryc. probability scaled. leadership modele. two-factor theory


27. At the top of Maslow’s hierarchy of needs (shown as a pyramid in the text) are ________ needs. a. esteem b. self-actualization c. social d. safetye. physiological


28. It has been estimated that the average person is exposed to over ________ ads or brand communications a day. a. 1,500b. 1,300c. 1,000d. 800e. 500


29. ________ is the tendency to interpret information in a way that will fit our preconceptions. a. Selective retentionb. Cognitive dissonance c. Selective distortiond. Subliminal perceptione. Discrimination


48


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***30. A cigarette ad has a picture of a young man laying on his back and dreamily looking

at clouds in the sky. Though not readily obvious to the casual reader, there is a message in the clouds that says “r-e-l-a-x.” This would be an example of which of the following? a. Selective distortionb. Cognitive dissonancec. Selective retentiond. Subliminal perceptione. Short-term memory


31. A ________ is a strong internal stimulus impelling action. a. cueb. drivec. reinforcementd. discriminatione. belief


32. ________ teaches marketers that they can build demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcementa. Demand theoryb. Learning theoryc. Economic theoryd. Psychological theorye. Demographic theory


33. As Rita scans the yellow pages section of her phone book looking for a florist, she sees several others products and services advertised. Though interesting on first glance, she quickly returns to her primary task of finding a florist. The items that distracted her from her search were most likely stored in which of the following types of memory? a. Short-term memoryb. Long-term memoryc. Middle memoryd. Subconscious memorye. Subliminal memory


49


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***34. 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. stimulusb. linkc. connectiond. personalitye. node


35. In general, the more attention placed on the meaning of information during ________, the stronger the resulting associations in memory will be. a. encodingb. decodingc. classificationd. retrievale. memorization


36. Repeated exposures to information provide greater opportunity for processing and thus the potential for ________. a. more profitsb. more salesc. stronger associationsd. increased brand personalitye. more one-to-one relationships


37. Cognitive psychologists believe that memory is ________, so that once information becomes stored in memory, its strength of association decays very slowly. a. very limitedb. somewhat limitedc. fluidd. often reflectivee. extremely durable


38. The five-stage model of the consumer buying process includes all of the following stages EXCEPT ________. a. problem recognitionb. information searchc. social interactiond. purchase decisione. influencer


50


*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***39. The buying process starts when the buyer recognizes a _________. a. product b. an advertisement for the product c. a salesperson from a previous visit d. problem or need e. an internal cueAnswer: d Page: 191 Level of difficulty: Medium

40. Which of the following is considered to be a more advanced form of information search wherein the person might phone friends or go online to secure information about a product or service? a. Heightened attentionb. Short-term memory processingc. Subliminal processing of informationd. Long-term memory processinge. Active information search

Answer: e Pages: 191–192 Level of difficulty: Hard

41. Of key interest to marketers are the major informational sources to which the consumer will turn and the relative importance of each. Which of the following would be considered to be an experiential information source? a. Consumer-rating organizations.b. The mass media.c. Acquaintances.d. Web sites.e. Using the product itself.


42. Which of the following is considered to be biggest single source of consumer information from a commercial source (over 40 percent of car buyers use this source to gather information)? a. The U.S. Chamber of Commerceb. J.D. Power & Associates c. Consumer Reportsd. The Better Business Bureaue. Underwriter’s Laboratory


43. Brands that meet consumers’ initial buying criteria are called the ________. a. total setb. awareness setc. consideration setd. choice sete. decision set


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***44. With 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 service. a. total setb. awareness set c. consideration setd. choice sete. decision set


45. A(n) ________ is a descriptive thought that a person holds about something. a. attitudeb. belief c. desired. feelinge. emotion


46. A(n) ________ puts people into a frame of mind: liking or disliking an object, moving toward or away from it. a. attitudeb. beliefc. feelingd. positione. stance


47. The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their ________. a. needsb. wantsc. desiresd. brand beliefse. consuming attitudes


48. All of the following would be considered to be strategies for approaching consumers who had rejected your company’s model of a product for another competitive brand EXCEPT ________. a. redesign your company’s productb. alter beliefs about your company’s brandc. covertly alter the qualitative data about your productd. alter beliefs about competitors’ brandse. call attention to neglected attributes

Answer: c Pages: 195–196 Level of difficulty: Medium

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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***49. Customer value analysis reveals the company’s strengths and weaknesses relative to

various competitors. Which of the following would be considered to be the first step in this process? a. Monitor customer values over time.b. Assess the quantitative importance of the different attributes.c. Assess the company and competitors’ performances on customer values.d. Identify the major attributes customers value.e. Examine customer ratings of the company and competitors.


50. With respect to consumer purchase intention, all of the following would be among the sub-decisions made by consumers EXCEPT ________. a. emotional valueb. brandc. dealerd. timinge. payment method

Answer: a Pages: 196–197 Level of difficulty: Medium

51. With the ________ heuristic, the consumer sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard for all attributes. a. conjunctiveb. lexicographicc. elimination-by-aspectsd. primarye. secondary

Answer: a Pages: 197 Level of difficulty: Hard

52. Even if consumers form brand evaluations, two general factors can intervene between the purchase intention and the purchase decision. One of these is unanticipated situational factors. What is the second factor? a. Amount of purchasing power.b. Attitudes of others.c. Short-term memory capabilities. d. Ability to return merchandise.e. The self-concept.

Answer: b Pages: 197 Level of difficulty: Medium

53. ________ risk occurs if the product fails to perform up to expectations. a. Physical b. Financial c. Social d. Psychological e. Functional


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***54. If performance meets consumer expectations, the consumer is ________.

a. delightedb. satisfiedc. disappointedd. surprisede. overwhelmed


55. A key driver of sales frequency is the ________ rate. a. product consumptionb. disposalc. refusald. utility e. option


56. The level of engagement and active processing undertaken by the consumer in responding to a marketing stimulus is called ________. a. elaboration likelihoodb. consumer disengagementc. consumer involvementd. variety-seekinge. low-involvement


57. If a consumer is persuaded to buy a product by a message that requires little thought and is based on an association with a brand’s positive consumption experiences from the past, the consumer used a ________ to arrive at this purchase decision. a. central routeb. peripheral routec. behavioral routed. subjective routee. objective route


58. With the ________, predictions of usage are based on quickness and ease of use.a. availability heuristicb. representative heuristicc. anchoring heuristicd. adjustment heuristice. semantic heuristic


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***59. Ben always reaches for the bright blue and yellow box of Ritz crackers when he

visits the snack food aisle in the grocery store. He rarely even reads the box or checks the price. Which of the following heuristics is most likely being used by Ben? a. Availability b. Representative c. Anchoringd. Adjustmente. Semantic


60. ________ refers to the manner by which consumers code, categorize, and evaluate financial outcomes of choices. a. Cost accounting

b. Financial accountingc. Behavioral accountingd. Mental accountinge. Factual accounting


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Chapter 7: Analyzing Business Markets


Multiple Choice

1. To create and capture value, sellers need to understand business organizations’ needs, resources, policies, and ________.g. demandsh. protocolsi. strategiesj. buying proceduresk. personnel policies


62. Webster and Wind define ________ as the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.a. marketing channelsb. organizational buyingc. demand-oriented buyingd. purchasinge. inventory control


63. The ________ consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.a. business marketb. consumer marketc. e-commerce marketd. global markete. supplier market


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***64. Business markets have several characteristics that contrast sharply with those of

consumer markets. All of the following would be among those characteristics EXCEPT ________. a. fewer, larger buyersb. close supplier-customer relationshipc. professional purchasingd. inverted demande. multiple sales calls

Answer: d Pages: 210–211 Level of difficulty: Hard

65. All of the following would be among the major industries that make up the business market EXCEPT ________. a. agriculture, forestry, and fisheriesb. manufacturingc. constructiond. banking, finance, and insurancee. the Internet

Answer: e Page: 210 Level of difficulty: hard

66. Trained purchasing agents, who must follow their organization’s ________, often purchase business goods.a. cultureb. past purchasing historyc. purchasing policies, constraints, and requirementsd. needse. financial budgets


67. Ultimately, the amount of steel sold to General Motors depends on the consumer’s demand for GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent? a. Derived demandb. Inelastic demandc. Geographic demandd. Relational demande. Static demand


68. The demand for business goods is ultimately derived from the demand for ________.a. raw materialsb. consumer goodsc. electronicsd. business solutionse. e-commerce


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***69. The business buyer faces many decisions in making a purchase. The number of

decisions depends on the buying situation. All of the following examples are appropriate to the preceding EXCEPT ________. a. complexity of the problem being solvedb. newness of the buying requirementc. number of people involvedd. applicability of situation to mission statemente. time required


70. The purchasing department buys office supplies on a routine basis. This type of purchase is classified as a ________. a. straight rebuyb. modified rebuyc. new taskd. secondary purchasee. preordained purchase


71. There are a series of guidelines for selling to small businesses. Which of the following should not be among those guidelines? a. Don’t waste their time.b. Do keep it simple.c. Do use the Internet.d. Don’t forget about direct contact.e. Do lump small and midsize businesses together for efficiency sake.


72. The business buyer makes the fewest decisions in the ________. a. modified rebuyb. regular buyc. straight rebuyd. new rebuye. new task buy


73. Many business buyers prefer to buy a total solution to a problem from one seller. ________ is the correct term for this process. a. Channel consolidationb. Systems buyingc. Vertical buyingd. Horizontal buyinge. Supply buying


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***74. Xerox offers a ________ approach to prospective clients when it offers a complete

turnkey procedure, operation, and management of the client’s information and communication need. a. supply buyingb. primary buyingc. systems buyingd. co-op buying systeme. direct buying


75. If Ampex Support Systems is the single supplier for a local manufacturing company’s MRO (maintenance, repair, operating) supplies and needs, Ampex Support Systems would then be considered as providing ________ for the manufacturer. a. systems buying b. purchasing supportc. turnkey logisticsd. decision supporte. systems contracting


76. ________ is a key industrial marketing strategy in bidding to build large-scale industrial products (e.g., dams, pipelines, et cetera). a. Systems contractingb. Systems buyingc. Systems sellingd. Solutions buyinge. Turnkey logistics


77. ________ is composed of all those individuals and groups who participate in the purchasing decision-making process, who share some common goals and the risks arising from their decisions.a. The buying centerb. The marketing sales teamc. Strategic managementd. Engineering supporte. The logistics center


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***78. In the purchasing decision process, the ________ are those who request that

something be purchased. They may be users or others in the organization.a. usersb. initiatorsc. influencers d. deciderse. approvers


79. In the purchasing decision process, the ________ are those who have the power to prevent sellers or information from reaching members of the buying center. a. gatekeepersb. buyersc. initiatorsd. approverse. deciders


80. The typical buying center has a minimum of ________ members. a. 2–3b. 3–4c. 4–5d. 5–6e. 10


81. Webster cautions that ultimately, ________ make purchasing decisions. a. only senior managers b. individuals, not organizationsc. organizations, not individualsd. third partiese. systems contractors


82. Small sellers concentrate their marketing efforts on reaching ________. a. approversb. initiatorsc. key buying influencersd. userse. the purchasing staff


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***83. To the ________ price is everything and transactional selling is used.

a. solution-oriented customersb. income-oriented customersc. gold-standard customersd. strategic-value customerse. price-oriented customers


84. The strategic-value customers want a fairly permanent sole-supplier relationship with your company. Which of the following would be the best selling format to use with the strategic-value customer? a. Transactional sellingb. Consultative sellingc. Quality sellingd. Enterprise sellinge. Indirect demand selling


85. Some customers are willing to handle price-oriented buyers by setting a lower price, but establishing restrictive conditions. All of the following would be among those conditions EXCEPT ________. a. limiting the quantity that can be purchasedb. no refundsc. no adjustmentsd. no servicese. no customer advertising


86. If a supplier signs an agreement with a customer that states $350,000 in savings will be earned by the customer over the next 18 months in an exchange for a ten-fold increase in the customer’s share of supplies ordered by the customer, the two parties will have participated in what is called ________. a. solution selling b. consultative selling c. risk and gain sharingd. strategic alignment e. demand shifting


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***87. W.W. Grainger employees work at large customer facilities to reduce materials-

management costs. Which of the following forms of solution selling is W.W. Grainger using? a. Solutions to partnerships. b. Solutions to alter corporate culture. c. Solutions to enhance customer revenues.d. Solutions to decrease customer risks.e. Solutions to reduce customer costs.


88. In principle, business buyers seek to ________ in relation a market offering’s costs. a. spread risks b. obtain the highest benefit package c. maintain everyday-low-pricesd. outsource as much as is possible e. eliminate partners’ shares in profits as much as possible


89. In the past, what position did purchasing departments hold in the management hierarchy of most organizations? a. A high level because of their role in managing the company’s costs.b. A moderate level because of their spotty record on controlling costs.c. A low level despite the fact that they manage more than half of the company’s

costs.d. A secretive position. e. There has been no determination of this position.


90. The new, more strategically-oriented purchasing departments have a mission. Which of the following most accurately describes that mission? a. Make the most profit possible and remain independent of entanglements. b. Approach every purchasing opportunity as means to create interdependency.c. Seek the best value from fewer and better suppliers.d. Outsource the supply function.e. Abandon all strategies except for systems selling and buying.


91. When the purchaser’s focus is short term and tactical and they are rewarded on their ability to obtain the lowest price from suppliers for the given level of quality and availability, this is referred to as ________.a. procurement orientationb. supply chain management orientationc. buying orientationd. sellers orientatione. market orientation


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***92. When buyers simultaneously seek quality improvements and cost reductions and they

develop collaborative relationships with major suppliers and seek savings through better management of acquisition, conversion, and disposal costs, this is referred to as ________.a. sellers orientationb. supply chain management orientationc. market orientationd. procurement orientatione. buying orientation


93. When the purchasing role is further broadened to become a more strategic, value-adding operation, this is referred to as ________.a. supply chain management orientationb. buying orientationc. sellers orientationd. procurement orientatione. routine orientation


94. Peter Kraljic distinguished four product-related purchasing processes. Which of the following matches to products that have high value and cost to the customer but involve little risk of supply because many companies make them? a. Strategic productsb. Bottleneck productsc. Leverage productsd. Routine productse. Commodity products


95. The products that have high value and cost to the customer and also involve high risk (e.g., mainframe computers) are called ________.a. strategic productsb. bottleneck productsc. leverage productsd. routine productse. commodity products


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***96. Most purchasing professionals describe their jobs as more ________, technical, team-

oriented, and involving more responsibility than ever before. a. riskyb. strategicc. ethically difficultd. Web-basede. human-based


97. Robinson and Associates have identified eight stages and called them buyphases. This model is called the ________ framework. a. buygridb. buying/selling c. seller-centeredd. commerciale. buy-analysis


98. The first step (buyphase) in the straight rebuy buyclass is ________. a. problem recognitionb. general need descriptionc. product specificationd. supplier searche. proposal solicitation


99. A new task buyclass decision begins with which of the following buyphases? a. Problem recognitionb. General need descriptionc. Product specificationd. Supplier searche. Proposal solicitation


100. Business marketers can stimulate problem recognition by ________. a. trade directoriesb. direct mail, telemarketing, and calling on prospectsc. encouraging the Better Business Bureau to release statisticsd. consumer advertisinge. requesting testimonials from existing customers


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***101. When Hewlett-Packard sells such complex products as a network computer

system, it is engaging in what it calls the ________ concept because it offers information and specific solutions to unique problems. a. “product specification”b. “price de-escalation” c. “systems selling”d. “trusted advisor” e. “strategic alliance”


102. U.S. businesses spent about ________ on online transactions with other businesses in 2002 as compared to consumer online purchases of $71 billion during the same time period. a. $650 billionb. $500 billionc. $482 billiond. $225 billione. $53 billion


103. With respect to e-procurement, Web sites are organized around two types of e-hubs: ________. a. vertical and horizontal hubsb. vertical and functional hubsc. functional hubs and organizational hubsd. supplier and user hubse. manufacturer and supplier hubs

Answer: b Page: 222 Level of difficulty: Hard 104. With respect to e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo, Gillette,

P&G, and several other companies joined forces to form a ________ called Transora to use their combined leverage to obtain lower prices for raw materials. a. manufacturer’s co-opb. supplier’s co-opc. middleman groupd. buying alliancee. cabal


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***105. Business-to-business cyberbuying is flourishing on the Internet. So far, most of

the products that businesses are buying electronically are ________, and travel and entertainment services. a. promotion services such as advertisingb. HR services (e.g., employee recruitment)c. MRO materials (maintenance, repair, and operations)d. food servicese. marketing research services


106. Moving into e-procurement has many benefits. Which of the following would not be among those benefits? a. Aggregating purchasing across multiple departments gains larger volume

discounts.b. Aggregating purchasing across multiple departments gains centrally negotiated

volume discounts.c. There is less buying of substandard goods from outside the approved list of

suppliers.d. A smaller purchasing staff is required.e. Purchasing gains a significant leverage with top management because of its

management team.Answer: e Page: 224 Level of difficulty: Hard

107. With respect to e-procurement commitment, in 2003 ________ was named number one in BtoB magazine’s annual ranking of the top B-to-B Web sites because of its ability to generate sales (about 55 percent of the company’s total sales) and commitment to the process. a. Coca-Colab. Dell Computersc. Hewlett-Packardd. Cadillace. Boeing


108. In the proposal solicitation process, ________ should be marketing documents that describe value and benefits in customer terms. a. written proposalsb. oral proposalsc. e-proposalsd. alliance proposalse. global proposals


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***109. Xerox qualifies only suppliers who meet the ISO 9000 quality standards, but to

win the company’s top award—certification status—a supplier must first complete ________. a. government certificationb. an extensive ethics statement evaluationc. the Xerox Multinational Supplier Quality Surveyd. a company training and indoctrination periode. a Malcolm Baldridge National Quality Award entry form and then enter


110. All of the following are considered to be methods of assessing customer value EXCEPT ________. a. direct survey questionsb. exit interviewing c. focus-group value assessmentd. conjoint analysise. benchmarks


111. According to purchasing professionals, which of the following is considered to be the major responsibility of the purchasing agent in supplier negotiations? a. Forming networks for future business.b. Assuring quality conformance.c. Being fair with all parties.d. To use a team approach in negotiations.e. Negotiating price.


112. If an industrial buyer leases heavy equipment like machinery and trucks rather than purchasing them, the lessee gains several advantages. Which of the following would NOT be among those advantages? a. Higher quality products.b. Conserving capital.c. Getting the latest products.d. Receiving better service.e. Some tax advantages.


113. “OTIFNE” is a term that summarizes three desirable outcomes of a B-to-B transaction: OT—deliver on time; IF—in full; and, NE—________. a. no errorb. no emergenciesc. non-experimentald. new entrepreneurse. need equipment


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***114. Corporate credibility depends on three factors: corporate expertise, corporate

trustworthiness, and ________. a. corporate manpowerb. corporate mission statementc. corporate likeabilityd. corporate governancee. corporate management structure


115. Cannon and Perreault found that buyer-suppler relationships differed according to four factors. Which of the following would NOT be among those factors? a. Importance of supply.b. Complexity of supply.c. Availability of alternatives.d. Supply market dynamism.e. Demand market conservatism.


116. According to Cannon and Perreault, buyer-supplier relationships fall into eight different categories. Which of the following relationships is characterized as being one that has much trust and commitment leading to a true partnership? a. Mutually adaptiveb. Collaborativec. Basic buying and sellingd. Customer supplye. Cooperative systems


117. In the ________ category of Cannon and Perreault’s buyer-supplier relationship categorization, although bonded by a close, cooperative relationship, the seller adapts to meet the customer’s needs without expecting much adaptation or change on the part of the customer in exchange. a. contractual transactionb. cooperative systemc. collaboratived. mutually adaptivee. customer is king


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*** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***118. Vertical coordination can facilitate stronger customer-seller ties but at the same

time may increase the risk to consumer’s and supplier’s ________ (e.g., those expenditures tailored to a particular company and value chain partner). a. logistics channelb. independent operationsc. specific investmentsd. leverage abilitye. liquidity situation


119. The ________ market consists of schools, hospitals, nursing homes, prisons, and other institutions that must provide goods and services to people in their care. a. verticalb. nonprofitc. spotd. secondary businesse. institutional


120. With purchases of $200 billion annually in goods and services, ________ is the largest customer in the world. a. Wal-Martb. Graingerc. the State of Californiad. the U.S. governmente. Latin America


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