Chapter 12 - 17 PMK Quiz 4

logistics involves moving products from the factory to resellers and ultimately to
customersPrinciples of Marketing, 17e (Kotler/Armstrong)

Chapter 12 Marketing Channels: Delivering Customer Value
1) Producing a product or service and making it available to buyers requires building

relationships not only with customers but also with key suppliers and resellers in the
company's
.
A) upstream partnerships
B) marketing channels
C) inventory providers
D) supply chain
E) downstream partnerships
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions
these channels perform.
Difficulty: Easy
2) The sets of firms that supply companies with the raw materials, components, parts,
information, finances, and expertise needed to create products or services are known as
.
A) retailers
B) upstream partners
C) distributors
D) downstream partners
E) distribution
channels Answer: B
Skill: Concept
Difficulty: Easy
3) Which of the following terms refers to the wholesalers and retailers that form a vital link
between the firm and its customers?
A) factory-supply networks
B) downstream partners
C) resource banks
D) upstream partners
E) supply channels
Answer: B
Skill: Concept
Difficulty: Easy
4) The term supply chain is considered limited because it .
A) ignores the make-and-sell aspect of the market
B) suggests that planning begins with raw materials and factory capacity
C) takes a step-by-step, linear view of purchase-production-consumption activities
D) takes a sense-and-respond view of the market
E) suggests that planning starts with identifying the needs of target
customers Answer: B
AACSB: Application of knowledge
Skill: Concept
Difficulty: Moderate
5) The term demand chain is considered limited because it .

A) advocates a make-and-sell view of the market that relies on a responsive supply network
B) suggests that planning starts with raw materials, productive inputs, and factory capacity
C) takes a step-by-step, linear view of purchase-production-consumption activities
D) ignores the evolution of the global marketplace
E) overlooks the needs of target
customers Answer: C
Skill: Concept
6) A view of the market that specifies that planning starts by identifying the needs of target
customers, to which the company responds by organizing a chain of resources and
activities with the goal of creating customer value is a(n) view.
A) make-and-sell
B) identify-and-target
C) purchase-produce-and-consume
D) market-and-profit
E) sense-and-respond
Answer: E
Skill: Concept
7) A is made up of the company, suppliers, distributors, and customers who
partner to improve the performance of the entire system.
A) value delivery network
B) horizontal channel
C) consumer base
D) product delivery network
E) product line
Answer: A
Skill: Concept
Difficulty: Easy
8) play an important role in matching supply and demand by providing consumers

with a broad assortment of products in small quantities.
A) Virtual banks
B) Intermediaries
C) Price consultants
D) Uniform-delivery networks
E) Upstream partners
Answer: B
Skill: Concept
Difficulty: Challenging
9) Which of the following questions is NOT of major concern regarding marketing channels?
A) What role do physical distribution and supply chain management plan in attracting
and satisfying customers?
B) What impact do marketing channels have on the profitability of the firm and its partners?
C) How do channel firms interact and organize to do the work of the channel?
D) What problems do companies face in designing and managing their channels?
E) What is the nature of marketing channels, and why are they important?
Answer: B
Skill: Concept
10) A is a set of interdependent organizations that help make a product or service
available for use or consumption by the consumer or business user.
A) product line
B) product delivery network
C) marketing channel
D) consumer base
E) resource bank
Answer: C
Skill: Concept
Difficulty: Easy
11) Which of the following is most likely true of marketing channel decisions?
A) They often involve long-term commitments to other firms.
B) They have minimal influence on the prices of products offered to customers.
C) They increase the amount of time a company spends connecting with customers.
D) They increase the amount of effort a company puts in to distribute goods.
E) They are easily altered, replaced, or discarded.
Answer: A
Skill: Concept
Difficulty: Easy
12) Distribution channel decisions frequently require long-term commitments between firms.
A primary reason is that .
A) advertising is not easy to change
B) old products are difficult to discard and new products are difficult to introduce
C) when they set up distribution through franchisees, independent dealers, or large
retailers, they cannot readily replace these channels with company-owned stores or Internet
sites if conditions change
D) changing the manufacturing requirements is expensive and takes significant time
E) management does not want to be constantly changing the method of selling and
distributing its products
Answer: C
Skill: Concept
13) play an important role in efficiently making products available to target
markets in the needed varieties and quantities.
A) Virtual banks
B) Intermediaries
C) Price consultants
D) Uniform-delivery networks
E) Upstream partners
Answer: B
Skill: Concept
14) From the economic system's point of view, the role of is to transform the
assortments of products made by producers into the assortments wanted by consumers.
A) upstream partners
B) marketing intermediaries
C) third-party logistics
D) price consultants
E) factory supervisors
Answer: B
Skill: Concept
Difficulty: Easy
15) A is a layer of intermediaries that performs some work in bringing the product
and its ownership closer to the final buyer.
A) product platform
B) channel level
C) resource bank
D) contact center
E) customer
franchise Answer: B
Skill: Concept
Difficulty: Easy
16) In a(n) channel, the same member both produces and distributes a product or
service to consumers.
A) tiered
B) direct
C) platform
D) vertical
E) exclusive
Answer: B
Skill: Concept
Difficulty: Easy
17) Which of the following companies uses a direct marketing channel?

A) Fishhooks, a factory that manufactures fishing equipment that it ships to hobby stores
worldwide
B) Germfight, a factory that manufactures dental products that it distributes only to select
department stores
C) Apple Blossoms, a company that sells its cosmetics exclusively through Ray's Retail Store
D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-
to- order catalogs
E) Showdown, a clothing store that stocks merchandise from different international
brands Answer: D
Skill: Application
18) At its most basic form, a marketing channel consists of the producer and the .
A) retailer
B) sales agent
C) competitor
D) processor
E) consume
r Answer: E
AACSB: Reflective thinking
Skill: Concept
Difficulty: Easy
19) A marketing channel that consists of one or more intermediaries is known as a(n)
marketing channel.
A) cyclic
B) upstream
C) looped
D) direct
E) indirect
Answer: E
Skill: Concept
Difficulty: Easy
20) Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery
stores across the country. The chain then makes the plasticine available to end consumers.
This is an example of .
A) a direct marketing channel
B) intensive distribution
C) an indirect marketing channel
D) disintermediation
E) extensive distribution
Answer: C
Skill: Application
21) Which of the following is an example of an indirect marketing channel?

A) June Bride, which sells bridal gowns via its click-to-order online catalogs
B) Farmer Brown, who delivers fresh milk from his dairy to customers every morning
C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country
D) Lifebelt Insurance, which sells life insurance through its door-to-door salespeople
E) Rhonda's Rental, which rents cars to people for the day
Answer: C
Skill: Application
22) Which of the following is a type of flow that connects all institutions in a marketing channel?
A) payment flow
B) ownership flow
C) physical flow
D) promotion flow
E) information
flow Answer: A
Skill: Concept
Difficulty: Easy
23) The greater the number of channel levels in a marketing channel, the .
A) less distance between producer and end-consumer
B) greater the channel complexity
C) less time it takes for products to reach end-consumers
D) greater the control producers have over the distribution of their products
E) greater the control producers have over the demand of their products
Answer: B
Skill: Concept
Difficulty: Easy
24) Which of the following is a conventional consumer marketing channel?

A) producer to business distributor to end consumer
B) producer to wholesaler to retailer to end consumer
C) producer to end consumer to business customer
D) producer to retailer
E) producer to business distributor to business
customer Answer: B
Skill: Concept
Difficulty: Easy
25) Which of the following is an indirect business marketing channel?
A) producer to retailer to business distributor
B) producer to wholesaler to retailer to end consumer
C) producer to end-consumer to business distributor
D) producer to retailer
E) producer to business distributor to business
customer Answer: E
Skill: Concept
Refer to the scenario below to answer the following question(s).
Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has
contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to
sell their produce to Giant Beanstalks. The company's products are available to the public only
through Greenleaf, a grocery chain with 38 stores in the country.
26) Which of the following is Giant Beanstalks' upstream partner?

A) the management of Greenleaf
B) the farmers of Riverdale
C) the trucks that carry Giant Beanstalks' products to Greenleaf
D) the end-consumers who buy the canned vegetables from Greenleaf
E) the logistics division of Giant
Beanstalk Answer: B
Skill: Application
27) Downstream marketing channel partners, such as wholesalers and retailers, form a vital link
between the firm and its customers.
Answer: TRUE
Skill: Concept
Difficulty: Easy
28) A company's channel decisions directly affect the prices of its
products. Answer: TRUE
Skill: Concept
Difficulty: Easy
29) Producers use intermediaries because they create greater efficiency in making
goods available to target markets.
Answer: TRUE
Skill: Concept
Difficulty: Easy
30) The role of marketing intermediaries is to transform the assortments of products made by
retailers into the assortments wanted by producers.
Answer: FALSE
Skill: Concept
Difficulty: Easy
31) Each layer of marketing intermediaries that performs some work in bringing the product
and its ownership closer to the final buyer is a channel level.
Answer: TRUE
Skill: Concept
Difficulty: Easy
32) It is more efficient for a company to keep the marketing channel functions—such as
information gathering, promotion, contacting customers and matching their needs, negotiation,
and physical distribution—in-house as they are most skilled at those functions.
Answer: FALSE
Skill: Concept
33) The number of products supplied indicates the length of a channel.
Answer: FALSE
Skill: Concept
Difficulty: Easy
34) In a direct marketing channel, the producer sells directly to the intermediaries, who in turn
sell directly to the customers.
Answer: FALSE
Skill: Concept
Difficulty: Easy
35) Provide an example of a company that has used an imaginative distribution system to gain a
competitive advantage.
Answer: Enterprise Rent-A-Car revolutionized the car-rental business by setting up off-airport
rental offices. Apple turned the retail music business on its head by selling music for the iPod
via the Internet on iTunes. And Amazon.com forever changed the face of retailing and became
the Walmart of the Internet by selling anything and everything without using physical stores.
Student answers will vary.
Skill: Application
36) Why is the term value delivery network a more relevant expression to use than the terms
supply chain or demand chain?
Answer: The term supply chain may be too limited, because it takes a make-and-sell view of
the business. It suggests that raw materials, productive inputs, and factory capacity should serve
as the starting point for market planning. The term demand chain is better because it suggests a
sense-and-respond view of the market. Under this view, planning starts by identifying the needs
of target customers, to which the company responds by organizing a chain of resources and
activities with the goal of creating customer value. However, even a demand chain view of a
business may be too limited because it takes a step-by-step, linear view of purchase-production-
consumption activities. Most large companies today are engaged in building and managing a
complex, continuously evolving value delivery network. A value delivery network is made up
of the company, suppliers, distributors, and, ultimately, customers who partner with each other
to improve the performance of the entire system.
AACSB: Application of knowledge; Written and oral communication
Skill: Concept
37) How do intermediaries add value to a marketing system?

Answer: Intermediaries reduce the amount of work that must be done by both producers and
consumers. They transform the assortment of products made by producers into the assortment
wanted by consumers. They buy large quantities from many producers and break them down
into the smaller quantities and broader assortments wanted by consumers. Intermediaries help
to match supply and demand. Intermediaries add value by bridging the major time, place, and
possession gaps that separate goods and services from those who would use them.
Skill: Concept
38) What are the key functions that members of the marketing channel perform?
Answer: Members of the marketing channel help to complete transactions by gathering and
distributing information, developing and spreading promotions, contacting prospective buyers,
matching and shaping the offer to the buyer's needs, and negotiating price and other terms.
Others help to fulfill the completed transactions through physical distribution, financing, and
risk taking.
Skill: Concept
39) are complex behavioral systems in which people and companies interact to
accomplish individual, company, and channel goals.
A) Customer relationship management systems
B) Distribution channels
C) Partner relationship systems
D) Consumer bases
E) Buying
centers Answer:
B
Skill: Concept
Objective: LO 12.2: Discuss how channel members interact and how they organize to perform
the work of the channel.
Difficulty: Easy
40) Which of the following does NOT apply to channel systems?

A) Some channel systems consist of only informal interactions among loosely organized firms.
B) Channel systems do not stand still; they evolve.
C) Some channel systems are formal interactions guided by strong organizational structures.
D) Intermediaries play interchangeable roles in the system.
E) Different types of intermediaries develop and
emerge. Answer: D
Skill: Concept
41) Which of the following is true of channel members?

A) They act independent of each other.
B) They play specialized roles in the channel.
C) They are not accountable to other channel members.
D) They play generalized and interchangeable roles in the distribution process.
E) Their competence and cooperation don't affect the company's image or
profits. Answer: B
Skill: Concept
42) Conflict that occurs among firms at the same level of the marketing channel is known as
conflict.
A) multitiered
B) horizontal
C) vertical
D) prolonged
E) financial
Answer: B
Skill: Concept
Difficulty: Easy
43) Conflict that occurs between different levels of the same marketing channel is known as
conflict.
A) horizontal
B) vertical
C) multitiered
D) equilateral
E) communal
Answer: B
Skill: Concept
Difficulty: Easy
44) Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt
because Imperial Hotel-Dallas was overcharging guests and providing poor service. The
Imperial Hotel was experiencing conflict.
A) equilateral
B) vertical
C) multitiered
D) communal
E) horizontal
Answer: E
Skill: Application
45) The management of two Panizza restaurants has an ongoing disagreement over the discount
rate given to students from the local high school. This is an example of conflict.
A) intensive
B) selective
C) exclusive
D) horizontal
E) vertical
Answer: D
Skill: Application
46) When KFC came into conflict with its franchisees over the brand's Unthink KFC
repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken,
KFC experienced conflict.
A) equilateral
B) horizontal
C) multitiered
D) communal
E) vertical
Answer: E
Skill: Application
47) Conflict in the channel can be healthy because .

A) it can disrupt channel effectiveness
B) normal give-and-take simply is normal
C) the channel could become passive and non-innovative
D) it can cause harm to channel relationships
E) the respective rights of the channel partners take priority
Answer: C
Skill: Application
48) A(n) consists of one or more independent producers, wholesalers, and retailers,
each seeking to maximize its own profits, sometimes even at the expense of the system as a
whole.
A) multitiered supply chain
B) conventional distribution channel
C) intrinsic market matrix
D) resource bank
E) product platform
Answer: B
Skill: Concept
49) Which of the following is true of conventional distribution channels?

A) Channel members have complete control over each other.
B) Channel members seek to maximize their own profits.
C) Channel conflict is governed by formal mechanisms.
D) Channel members are assigned roles according to a clearly defined framework.
E) Channel members work exclusively for the good of the
organization. Answer: B
Skill: Concept
50) A(n) marketing system consists of producers, wholesalers, and retailers acting as
a unified system.
A) horizontal
B) communal
C) multitiered
D) vertical
E) equilateral
Answer: D
Skill: Concept
Difficulty: Easy
51) Which of the following is true of vertical marketing systems?
A) Producers, wholesalers, and retailers act as a unified system.
B) Channel members have no control over each other.
C) Channel conflict is governed by informal mechanisms.
D) The system is dominated by the consumer.
E) Channel members work independently with no cooperation from other
members. Answer: A
Skill: Concept
52) Which of the following is a major type of vertical marketing system?

A) corporate
B) conventional
C) multilevel
D) intrinsic
E) extrinsic
Answer: A
Skill: Concept
Difficulty: Easy
53) A VMS integrates successive stages of production and distribution under single
ownership.
A) contractual
B) contingency
C) corporate
D) conventional
E) communal
Answer: C
Skill: Concept
Difficulty: Easy
54) A VMS consists of independent firms at different levels of production and
distribution who join together through formal agreements to obtain more economies or sales
impact than each could achieve alone.
A) corporate
B) contingency
C) contractual
D) communal
E) conventional
Answer: C
Skill: Concept
Difficulty: Easy
55) The organization is the most common type of contractual relationship.

A) franchise
B) horizontal
C) conventional
D) multi-national
E) entrepreneuria
l Answer: A
Skill: Concept
Difficulty: Easy
56) Ford and its network of independent franchised dealers is an example of a .

A) manufacturer-sponsored retailer franchise system
B) manufacturer-sponsored wholesaler franchise system
C) service-firm-sponsored retailer franchise system
D) service-firm-sponsored equity strategic alliance
E) manufacturer-and-service-sponsored joint
venture Answer: A
Skill: Application
57) Fire Up makes fireproof clothing material and it licenses select stores around the world to
use its material to make finished products with the Fire Up logo. Which of the following
types of franchising is evident here?
A) manufacturer-sponsored retailer franchise system
B) manufacturer-sponsored wholesaler franchise system
C) service-firm-sponsored retailer franchise system
D) service-firm-sponsored equity strategic alliance
E) manufacturer-and-service-sponsored joint
venture Answer: B
Skill: Application
58) In a(n) , leadership is assumed not through common ownership or contractual

ties but through the size and power of one or a few dominant channel members.
A) horizontal marketing system
B) administered VMS
C) corporate VMS
D) contractual VMS
E) conventional
VMS Answer: B
Skill: Concept
Difficulty: Easy
59) VMS is a vertical marketing system that coordinates successive stages of

production and distribution through the size and power of one of the parties.
A) Contingent
B) Aligned
C) Corporate
D) Contractual
E) Administere
d Answer: E
Skill: Concept
Difficulty: Easy
60) In a(n) , two or more companies at one level join together to follow a new
marketing opportunity.
A) administered vertical marketing system
B) horizontal marketing system
C) corporate vertical marketing system
D) hybrid distribution system
E) conventional marketing
system Answer: B
Skill: Concept
Difficulty: Easy
61) Which of the following is most likely a manufacturer-sponsored retailer franchise system?
A) international fast food chains like McDonald's and Pizza Hut
B) Starbucks outlets operating within Target stores
C) Toyota and its network of independent franchised dealers
D) licensed bottlers that bottle and sell soft drinks to retailers
E) hotel chains like the Ritz Carlton and Shangri-La
Answer: C
Skill: Application
62) When McDonald's offers its products inside of a Walmart store, it is using a(n) .
A) conventional marketing system
B) corporate VMS
C) contractual VMS
D) administered VMS
E) horizontal marketing
system Answer: E
Skill: Concept
Difficulty: Easy
63) A(n) system involves a single firm setting up two or more marketing channels to
reach one or more customer segments.
A) conventional distribution
B) corporate vertical marketing
C) horizontal marketing
D) administered vertical marketing
E) multichannel
distribution Answer: E
Skill: Concept
Difficulty: Easy
64) Atlas Imports and Exports sells products directly to consumers via the Atlas Web site,
and through local retailers as well. Which of the following is evident here?
A) corporate vertical marketing system
B) horizontal marketing system
C) multichannel distribution system
D) administered vertical marketing system
E) conventional distribution channel
Answer: C
Skill: Application
65) Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via
Star City stores. This is an example of a(n) distribution system.
A) conventional
B) inclusive
C) intensive
D) extensive
E) multichannel
Answer: E
Skill: Application
66) Which of the following is an advantage of adding new channels in a multichannel
distribution system?
A) limiting market complexity
B) reducing control over the system
C) expanding sales and market coverage
D) decreasing marketing needs and costs
E) minimizing mass customization of products
Answer: C
Skill: Concept
67) Which of the following is a disadvantage of adding new channels in a multichannel

distribution system?
A) decreasing complexity of markets
B) decreasing control over the system
C) reducing opportunities for franchising
D) lowering sales and market coverage
E) minimizing publicity needs
Answer: B
Skill: Concept
Difficulty: Easy
68) occurs when product or service producers cut out intermediaries and go directly
to final buyers or when radically new types of channel intermediaries displace traditional ones.
A) Extensive distribution
B) Multichannelization
C) Disintermediation
D) Inclusive distribution
E) Cross
merchandising Answer:
C
Skill: Concept
Difficulty: Easy
69) The Bookworm began delivering books directly to customers through mail instead of
selling through brick-and-mortar companies. This is an example of .
A) indirect marketing
B) disintermediation
C) franchising
D) exclusive distribution
E) intensive distribution
Answer: B
Skill: Application
70) Which of the following is true of changes in the organization of distribution channels?
A) Developing new channels seldom causes conflict with a company's established channels.
B) To remain competitive, product and service producers must use fewer marketing channels.
C) The growth of the Internet threatens many brick-and-mortar companies with
disintermediation.
D) Companies have fewer channel options today than they did in the past due to economic
problems.
E) Advances in technology have decreased the number of channels available to entrepreneurial
firms.
Answer: C
AACSB: Information technology
Skill: Concept
71) A marketing channel works most effectively when each channel member performs the
tasks it does best.
Answer: TRUE
Skill: Concept
Difficulty: Easy
72) Horizontal conflicts are conflicts between different levels of the same
channel. Answer: FALSE
Skill: Concept
Difficulty: Easy
73) Vertical conflict occurs among firms at the same level of the
channel. Answer: FALSE
Skill: Concept
Difficulty: Easy
74) A conventional distribution channel consists of one or more independent producers,

wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the
expense of the system as a whole.
Answer: TRUE
Skill: Concept
Difficulty: Easy
75) A non-corporate VMS integrates successive stages of production and distribution

under single ownership.
Answer: FALSE
Skill: Concept
Difficulty: Easy
76) In a vertical marketing system, two or more companies at one level join together to take
advantage of a new marketing opportunity.
Answer: FALSE
Skill: Concept
Difficulty: Easy
77) Disintermediation occurs when radically new types of channel intermediaries displace
traditional ones.
Answer: TRUE
Skill: Concept
Difficulty: Easy
78) What is horizontal conflict? Illustrate your answer with an example.
Answer: Horizontal conflict is conflict that occurs among firms at the same level of the
channel. For example, Chevrolet would experience horizontal conflict if two of its dealers in
the same area complain that each is being undercut by the other. Student answers will vary.
Skill: Application
79) What is vertical conflict? Illustrate your answer with an example.

Answer: Vertical conflict occurs between different levels of the same channel; an example
would be conflict created between a manufacturer and its dealers when it decides to open an
online e-commerce Web site for the same product. Student answers will vary.
Skill: Application
80) What is a conventional distribution channel?

Answer: A conventional distribution channel consists of one or more independent producers,
wholesalers, and retailers. Each is a separate business seeking to maximize its own profits,
perhaps even at the expense of the system as a whole.
Skill: Concept
Difficulty: Easy
81) Explain power in a vertical marketing system.

Answer: A vertical marketing system (VMS) consists of producers, wholesalers, and retailers
acting as a unified system. One channel member owns the others, has contracts with them, or
wields so much power that they must all cooperate.
Skill: Concept
82) How can a firm benefit from involvement in a contractual VMS?
Answer: A contractual VMS consists of independent firms at different levels of production and
distribution that join together through contracts to obtain more economies or sales impact than
each could achieve alone.
Skill: Concept
Difficulty: Easy
83) How can a firm benefit from participating in a horizontal marketing system?
Answer: Two or more companies at one level join together to follow a new marketing
opportunity; by working together, companies can combine their financial, production,
or marketing resources to accomplish more than any one company could alone.
Skill: Concept
Difficulty: Easy
84) Give an example of a multichannel distribution system.

Answer: John Deere sells its familiar green and yellow lawn and garden tractors, mowers, and
outdoor power products to consumers and commercial users through several channels,
including John Deere retailers, Lowe's home improvement stores, and online. Student answers
will vary.
Skill: Application
85) Compare a conventional distribution channel with a vertical marketing system (VMS).
Answer: A conventional distribution channel consists of one or more independent producers,
wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, even
at the expense of the system as a whole. No channel member has much control over the other
members, and no formal means exists for assigning roles and resolving channel conflict. On the
other hand, a vertical marketing system is a unified system made up of producers, wholesalers,
and retailers. While members of a conventional distribution channel seek to maximize their
own profits, members of a vertical marketing system all cooperate because either one member
owns the others, one has contracts with the others, or one wields more power than the others.
Skill: Concept
86) What are the advantages of multichannel distribution systems?
Answer: Multichannel distribution systems exist when a single firm sets up two or more
marketing channels to reach one or more customer segments. Such a system offers advantages
to firms facing large and complex markets. It allows the firms to expand sales and market
coverage. It allows firms to tailor their products and services to the specific needs of diverse
customer segments. Larger bottom-line profits may result.
Skill: Concept
87) How have changes in technology and the growth of online marketing affected the design
of marketing channels?
Answer: Changes in technology and the growth of online marketing have increased
disintermediation, which is the cutting out of marketing channel intermediaries by product or
service producers, or the displacement of traditional intermediaries with radically new types. In
many industries, traditional intermediaries are dropping by the wayside. For example, many
airlines now sell directly to final buyers, cutting retailers and sales agents from their marketing
channels. Online marketers take business from traditional brick-and-mortar retailers.
Skill: Concept
88) Which of the following should be a manufacturer's first step when designing an
effective marketing channel?
A) set channel objectives
B) analyze consumer needs
C) identify channel alternatives
D) evaluate channel alternatives
E) establish strategic
alliances Answer: B
Skill: Concept
Objective: LO 12.3: Identify the major channel alternatives open to a company.
89) Which of the following is NOT a step in designing an effective marketing channel?
A) evaluating the channel alternatives
B) identifying major channel alternatives
C) analyzing consumer needs
D) determining pricing policy for channel members
E) setting channel
objectives Answer: D
Skill: Concept
90) In designing the marketing channel, a company must balance customer needs and wants
with .
A) the need to make a profit
B) the requirement to find channel members to fill all the steps
C) the firm's position in the customers' minds
D) the desire to be "the best" in all service areas
E) the firm's resources and skills to provide all the desired services
Answer: E
Skill: Concept
91) The company's channel objectives are influenced by all of the following EXCEPT
.
A) the company's marketing intermediaries
B) the company's competitors
C) the age of the company
D) the nature of the company
E) the company's products
Answer: C
Skill: Concept
92) Which of the following is an environmental factor that affects channel objectives
and design?
A) economic conditions
B) factory staffing
C) organizational objectives
D) interpersonal influences
E) individual
motives Answer: A
Skill: Concept
93) distribution is a strategy in which producers of convenience products and

common raw materials stock their products in as many outlets as possible.
A) Direct
B) Intensive
C) Inclusive
D) Exclusive
E) Selectiv
e Answer:
B
Skill: Concept
Difficulty: Easy
94) For which of the following products would the intensive distribution strategy most likely be
used?
A) high-end cameras
B) luxury cars
C) lawn mowers
D) soft drinks
E) furniture
Answer: D
Skill: Application
95) Whitelight sells its toothpastes in many convenience stores across the country. This is
an example of distribution.
A) exclusive
B) selective
C) hybrid
D) intensive
E) normal
Answer: D
Skill: Application
96) With which of the following strategies would a company give only a limited number
of dealers the right to distribute its products in their territories?
A) exclusive distribution
B) extensive distribution
C) moderate distribution
D) primary distribution
E) intensive distribution
Answer: A
Skill: Concept
Difficulty: Easy
97) For which product would a company use an exclusive distribution strategy?
A) luxury cars
B) newspapers
C) chewing gum
D) dairy products
E) soft drinks
Answer: A
Skill: Application
98) Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of
distribution.
A) exclusive
B) selective
C) intensive
D) indirect
E) corporate
Answer: A
Skill: Application
Difficulty: Easy
99) distribution involves the use of more than one but fewer than all of the
intermediaries who are willing to carry a company's products.
A) Exclusive
B) Selective
C) Intensive
D) Indirect
E) Corporat
e Answer: B
Skill: Concept
Difficulty: Easy
100) Craftsman Furniture Company offers its bedroom and living room furniture through
independent and smaller chain furniture stores, not through every store that sells furniture. It
uses distribution.
A) intensive
B) direct
C) corporate
D) selective
E) exclusive
Answer: D
Skill: Concept
Difficulty: Easy
101) Which of the following is true of the exclusive distribution strategy?
A) It makes products available to everybody, everywhere.
B) It is used primarily for convenience items.
C) It helps promote a brand's luxury image.
D) It gives producers no control over their products.
E) It enlists all of the intermediaries willing to carry a company's products.
Answer: C
Skill: Concept
102) When the seller allows only certain outlets to carry its products, this strategy is called
.
A) exclusive distribution
B) subjective dealing
C) selective distribution
D) exclusive pricing
E) disintermediatio
n Answer: A
Skill: Concept
Difficulty: Easy
103) What distribution strategy does Giant Beanstalks use?

A) inclusive distribution
B) exclusive distribution
D) intensive distribution
E) extensive distribution
Answer: B
Skill: Application
104) Which of the following is NOT a criterion a company will use to evaluate the
major channel alternatives?
A) adaptability
B) control
C) commitment
D) sales and costs
E) likabilit
y Answer:
E
Skill: Application
105) Why do firms have difficulty accessing potential market areas in developing
countries, such as China and India?
A) inadequate distribution systems
B) anti-globalization efforts
C) highly centralized rural markets
D) limited manpower
E) high operating costs
Answer: A
Skill: Concept
Difficulty: Easy
106) Multichannel marketing occurs when a single firm sets up two or more marketing
channels to reach one or more customer segments.
Answer: TRUE
Skill: Concept
Difficulty: Easy
107) Marketing channel design calls for analyzing consumer needs, setting channel objectives,
identifying major channel alternatives, and evaluating those alternatives.
Answer: TRUE
Skill: Concept
Difficulty: Easy
108) Producers of convenience products and common raw materials typically seek exclusive
distribution, a strategy in which they stock their products in as many outlets as possible.
Answer: FALSE
Skill: Concept
Difficulty: Easy
109) Under the strategy of intensive distribution, the producer gives only a limited number of
dealers the exclusive right to distribute its products in their territories.
Answer: FALSE
Skill: Concept
Difficulty: Easy
110) The producer informs each channel member what its responsibilities are, and what the
terms of business are.
Answer: FALSE
Skill: Concept
Difficulty: Easy
111) Describe the types of products that are intensively distributed and provide examples.
Answer: Convenience products and common raw materials must be available where and when
consumers want them; examples include chewing gum, soft drinks, and toothpaste. Student
examples will vary.
Skill: Concept
Difficulty: Easy
112) Describe the types of products that are exclusively distributed and provide examples.
Answer: Exclusive distribution is often used for luxury brands, such as expensive automobiles
and prestige clothing. Student answers will vary.
Skill: Concept
Difficulty: Easy
113) Describe the types of products that are selectively distributed and provide examples.
Answer: In selective distribution, more than one, but fewer than all, of the intermediaries who
are willing to carry a company's products are used. Products include appliances and some
branded clothing. Student answers will vary.
Skill: Concept
Difficulty: Easy
114) Compare the three distribution strategies that producers use, providing examples of
products for each type of distribution.
Answer: Student answers will vary. Producers of convenience products and common raw
materials typically seek intensive distribution as a strategy to stock their products in as many
outlets as possible. The goods are available where and when consumers want them. Toothpaste,
detergents, and soft drinks are examples of this kind of distribution.
Selective distribution is used when selling to more than one but fewer than all of the
intermediaries who are willing to carry a company's products in a given market. Examples are
name-brand blue jeans and computers.
Exclusive distribution is used when the producer wants to stock its products with only one or a
few dealers in an area. Examples are expensive cars.
Skill: Concept
115) management calls for selecting, managing, and motivating individual channel
members and evaluating their performance over time.
A) Inventory
B) Marketing channel
C) Brand image
D) Customer experience
E) Brand content
Answer: B
Skill: Concept
Objective: LO 12.4: Explain how companies select, motivate, and evaluate channel members.
Difficulty: Easy
116) To help recruit, train, organize, manage, motivate, and evaluate relationships with
channel partners, companies are now installing integrated high-tech systems.
A) advertiser funded programming
B) customer segmentation network
C) brand content management
D) partnership relationship management
E) closed loop
marketing Answer: D
Skill: Concept
Difficulty: Easy
117) Producers motivate channel members using all of the following EXCEPT .
A) using strict rules to force compliance with contract terms
B) partner relationship management
C) working to sell through the intermediaries
D) persuading the intermediaries that they are first-line customers
E) convincing channel members that each will enjoy greater success working together with a
common goal
Answer: A
Skill: Concept
118) When a seller requires its dealers to abstain from handling competitors' products, it is
called .
A) subjective distribution
B) exclusive dealing
D) exclusive pricing
E) disintermediatio
n Answer: B
Skill: Concept
Difficulty: Easy
119) A strategy of exclusive dealing is most likely considered legal if .

A) the industry is newly developed
B) both parties have large territories
C) competition is not substantially lessened
D) the dealer agrees to promote the competitor's products
E) the dealer receives a steady source of supply and support
Answer: C
AACSB: Ethical understanding and reasoning
Skill: Concept
120) Which of the following involves the producer agreeing not to sell to other dealers in a
given area, or the buyer agreeing to sell only in its own region?
A) closed loop marketing
B) uniform-delivery pricing
C) exclusive territorial agreement
D) cross merchandising
E) nationalized
marketing Answer: C
Skill: Concept
Difficulty: Easy
121) Producers of strong brands sometimes sell to dealers only on the condition that dealers
take some or all of the rest of a product line. This practice is known as .
A) product line franchising
B) selective dealing
C) cross merchandising
D) full-line forcing
E) disintermediatio
n Answer: D
Skill: Concept
Difficulty: Easy
122) Marketing channel management calls for selecting, managing, and motivating individual
channel members and evaluating their performance over time.
Answer: TRUE
Skill: Concept
Difficulty: Easy
123) As a part of intensive distribution, dealers are expected to refrain from selling the products
of the producers' competitors.
Answer: FALSE
Skill: Concept
Difficulty: Easy
124) When a producer uses exclusive dealing and the use of exclusive territorial agreements to
keep a dealer from selling outside its territory, it is completely legal.
Answer: FALSE
Skill: Concept
Difficulty: Easy
125) What factors should a firm consider when selecting intermediaries?

Answer: A company may want to evaluate each intermediary's years in business, other lines
carried, growth and profit records, cooperativeness, and reputation.
Skill: Concept
Difficulty: Easy
126) When would an exclusive dealing contract be legally problematic?

Answer: An exclusive dealing contract may become a legal issue if one party has not
voluntarily agreed to the contract or if the arrangement substantially lessens competition or
tends to create a monopoly.
Skill: Concept
Difficulty: Easy
127) Explain how companies select, motivate, and evaluate intermediaries or channel members.
Answer: When selecting intermediaries, the company should evaluate each channel member's
qualifications and select those who best fit its channel objectives. The company should use
economic criteria, control issues, and adaptive criteria to analyze each possible channel
member. Once selected, channel members must be continuously motivated to do their best. The
company must sell not only through the intermediaries but also to and with them. It should
work to forge long-term partnerships with channel partners to create a marketing system that
meets the needs of both the manufacturer and the partners. The company must also regularly
check channel member performance against established performance standards, rewarding
intermediaries who are performing well and assisting or replacing weaker ones.
Skill: Concept
128) Evaluate how public policy affects distribution decisions.

Answer: For the most part, companies are legally free to develop whatever channel
arrangement suits them, as long as they do not substantially lessen competition or tend to create
a monopoly, and as long as both parties enter into the agreement voluntarily. Exclusive
territorial agreements in which a producer attempts to keep a dealer from selling outside of a
designated territory have become a major legal issue. Producers are free to select their dealers,
but they must have legitimate cause to terminate a relationship with a dealer.
Skill: Concept
129) Smart Shoppers, an online store that delivers its products to homes in and around
California, recently switched its entire fleet to biodiesel trucks that run on used cooking oil
rather than gas. Smart Shoppers has most likely developed a(n) .
A) vertical marketing channel
B) green supply chain
C) multitiered marketing channel
D) intermodal transportation system
E) hybrid distribution
system Answer: B
Skill: Application
Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated
supply chain management.
130) involves planning, implementing, and controlling the physical flow of goods,
services, and related information from points of origin to points of consumption to meet
customer requirements at a profit.
A) Advertising
B) Product positioning
C) Mass customization
D) Marketing logistics
E) Branding
Answer: D
Skill: Concept
Difficulty: Easy
131) Marketing logistics includes all of the following EXCEPT .

A) reverse logistics
B) inbound logistics
C) outbound logistics
D) customer-centered logistics
E) producer-centered
logistics Answer: E
Skill: Concept
Difficulty: Easy
132) logistics starts with the marketplace and works backward to the factory or even
to sources of supply.
A) Outbound
B) Customer-centered
C) Upstream
D) Reverse
E) Inbound
Answer: B
Skill: Concept
Difficulty: Easy
133) logistics involves moving products from the factory to resellers and ultimately
to customers.
A) Customer-centered
B) Reverse
C) Upstream
D) Outbound
E) Inbound
Answer: D
Skill: Concept
Difficulty: Easy
134) logistics refers to moving products and materials from the suppliers to the
factory.
A) Outbound
B) Diverse
C) Inbound
D) Reverse
E) Customer-
centered Answer: C
Skill: Concept
Difficulty: Easy
135) Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products
returned by consumers or resellers is known as .
A) cross merchandising
B) reverse logistics
C) disintermediation
D) diverse logistics
E) inbound
logistics Answer: B
Skill: Concept
Difficulty: Easy
136) management refers to the management of upstream and downstream value-

added flows of materials, final goods, and related information among suppliers, the
company, resellers, and final consumers.
A) Cross
B) Price
C) Supply chain
D) Product cycle
E) Customer
Answer: C
Skill: Concept
Difficulty: Easy
137) Which of the following is NOT a major logistics function?

A) inventory management
B) product designing
C) warehousing
D) transportation
E) packaging
Answer: B
Skill: Concept
Difficulty: Easy
138) Logistics has grown in importance for all of the following reasons EXCEPT that
.
A) companies that become channel members want to continue to grow and expand.
B) companies can gain a powerful competitive advantage by using improved logistics to give
customers better service or lower prices.
C) improved logistics can yield tremendous cost savings to both a company and its customers.
D) more than almost any other marketing function, logistics affects the environment and
a firm's environmental sustainability efforts.
E) the explosion in product variety has created a need for improved logistics
management. Answer: A
Skill: Concept
139) Major logistics functions are logistics information management, inventory

management, transportation, and .
A) advertising
B) product design
C) financial projections
D) warehousing
E) customer sales
Answer: D
Skill: Concept
Difficulty: Easy
140) are large and highly automated warehouses designed to receive goods from
various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers
as quickly as possible.
A) Loading docks
B) Open warehouses
C) Distribution centers
D) Shipping platforms
E) Product
platforms Answer: C
Skill: Concept
Difficulty: Easy
141) or smart tag technology helps companies locate a product's exact position
within its supply chain.
A) RFID
B) PRM
C) VMS
D) BCODE
E) 3PL
Answer: A
Skill: Concept
Difficulty: Easy
142) Which of the following is true of using trucks as a transportation mode?

A) Transportation via trucks is costlier than by rail or air.
B) Trucks are a specialized means of shipping petroleum, natural gas, and chemicals
from sources to markets.
C) Trucks provide in-transit services such as the diversion of shipped goods to
other destinations en route.
D) Trucks are highly flexible in their routing and time schedules.
E) Trucks are the slowest mode of transportation and most affected by the
weather. Answer: D
Skill: Concept
143) Which of the following is true of transporting goods via railroads?

A) Railroads are ideal for the transportation of digital technology.
B) Railroads are a specialized means of shipping petroleum, natural gas, and chemicals from
sources to markets.
C) Railroads are a cost-effective way to ship large amounts of bulk products over
long distances.
D) Railroads are the most flexible mode of transportation in their routing and time schedules.
E) Railroads are the slowest mode of transportation and are the most affected by the
weather. Answer: C
Skill: Concept
144) Which of the following is true of shipping goods via water transportation?
A) Water transportation is an efficient way to ship perishable merchandise over long distances.
B) Water carriers are highly flexible in their routing and time schedules.
C) Water transportation provides in-transit services, such as the processing of goods en route.
D) Water transportation is ideal when time is short and speed is needed.
E) Water transportation is the slowest mode of transportation and the most affected by
the weather.
Answer: E
Skill: Concept
145) are a specialized means of shipping petroleum, natural gas, and chemicals from
sources to markets.
A) Air tunnels
B) Rail flatcars
C) Steam ships
D) Pipelines
E) Airlines
Answer: D
Skill: Concept
Difficulty: Easy
146) Which of the following is true about using air carriers as a transportation mode when
shipping products?
A) Air carriers are the most cost-effective way to ship non-perishable goods over
short distances.
B) Air carriers are the slowest and least reliable modes of transport.
C) Air carriers provide in-transit services such as the processing of goods en route.
D) Air carriers are ideal when time is short and speed is needed.
E) Air carriers are a specialized means of shipping chemicals from sources to
markets. Answer: D
Skill: Concept
147) In intermodal transportation, which of the following describes the use of both rail and
trucks for transportation?
A) fishyback
B) drawbar
C) trainship
D) piggyback
E) airtruck
Answer: D
Skill: Concept
Difficulty: Easy
148) In intermodal transportation, which of the following describes the use of both water and
trucks for transportation?
A) fishyback
B) drawbar
C) trainship
D) piggyback
E) airtruck
Answer: A
Skill: Concept
Difficulty: Easy
149) Which of the following is the most effective way for a company to ship bulky,
non- perishable products if its key requirement is low price?
A) pipelines
B) air transport
C) trucks
D) water carriers
E) piggybac
k Answer: D
Skill: Concept
Difficulty: Easy
150) Heart of Midnight sells blue orchids to major florists around the world. Their
key requirement is speed. Which of the following modes of transport will help them?
A) rail transport
B) air carriers
C) trucks
D) piggybacks
E) water transport
Answer: B
Skill: Application
151) Using , retailers can share real-time data on sales and current inventory levels
with suppliers.
A) automated storage and retrieval systems (ASRS)
B) vendor-managed inventory (VMI) systems
C) transportation management systems (TMS)
D) warehouse management systems (WMS)
E) distribution center management systems
(DCMS) Answer: B
Skill: Concept
Difficulty: Easy
152) management is the logistics concept that emphasizes teamwork—both inside

the company and among all the marketing channel organizations—to maximize the
performance of the entire distribution system.
A) Logistics inventory
B) Integrated logistics
C) Logistics information
D) Independent logistics
E) Group
logistics Answer:
B
AACSB: Interpersonal relations and teamwork
Skill: Concept
153) Roland is the logistics manager of Giant Beanstalks. Which of the following is NOT
an area of responsibility for him?
A) the transportation of the canned vegetables to Greenleaf
B) the storage of the unprocessed vegetables
C) the advertising of the final product
D) product inventory management
E) the packaging of the final product
Answer: C
Skill: Concept
Difficulty: Easy
154) Which of the following modes of transport should Roland choose to transport the
unprocessed vegetables from Riverdale's farms to the Giant Beanstalks' factory quickly and
with minimum cost?
A) air carrier
B) pipeline
C) truck
D) oil tanks
E) air
tunnels
Answer: C
Skill: Concept
Difficulty: Easy
Kimberly's Crown sells and designs jewelry. Despite the jewelry's popularity, products are
available only through a few shopping stores across the country.
155) What distribution strategy does Kimberly's Crown use?

A) exclusive
B) intensive
C) selective
D) inclusive
E) extensive
Answer: C
Skill: Concept
Difficulty: Easy
156) When one of the stores complains that the jewelry they're being given is inferior to the
jewelry Kimberly sells to other stores, Kimberly experiences conflict.
A) horizontal
B) multitiered
C) vertical
D) intensive
E) subjective
Answer: C
Skill: Concept
157) Kimberly decides to alter its distribution strategy so that its jewelry is accessible to the
public only through one distributor. The strategy they're considering is known as
distribution.
A) elusive
B) extensive
C) exclusive
D) selective
E) elective
Answer: C
Skill: Concept
Difficulty: Easy
158) What mode of transport should Kimberly use to ship its goods over long distances as
quickly as possible?
A) flatcars
B) water transport
C) air transport
D) trucks
E) railroads
Answer: C
Skill: Concept
Difficulty: Easy
159) Marketing logistics involves planning, implementing, and controlling the physical flow of
goods, services, and related information from points of origin to points of consumption to meet
customer requirements at a profit.
Answer: TRUE
Skill: Concept
Difficulty: Easy
160) Reverse logistics refers to the moving of products and materials from suppliers to the
factory.
Answer: FALSE
Skill: Concept
Difficulty: Easy
161) Environmental sustainability is an important factor in supplier selection and

performance evaluation, as designing sustainable supply chains has become the right thing to
do.
Answer: TRUE
Skill: Concept
Difficulty: Easy
162) In contrast to distribution centers, storage warehouses are designed to move goods rather
than just house them.
Answer: FALSE
Skill: Concept
Difficulty: Easy
163) Air carriers transport digital products from producer to customer via satellite, cable, phone
wire, or wireless signal.
Answer: FALSE
Skill: Concept
Difficulty: Easy
164) Intermodal transportation refers to the combination of two or more modes of

transportation.
Answer: TRUE
Skill: Concept
Difficulty: Easy
165) Electronic data interchange is the digital exchange of data between organizations,
which primarily is transmitted via the Internet.
Answer: TRUE
Skill: Concept
Difficulty: Easy
166) How can a company benefit through a just-in-time logistics system?

Answer: With just-in-time logistics systems, producers and retailers carry only small
inventories of parts or merchandise, often only enough for a few days of operations. This
creates substantial savings in inventory carrying and handling costs.
Skill: Concept
Difficulty: Easy
167) What does the concept of integrated logistics management advocate?

Answer: This concept recognizes that providing better customer service and trimming
distribution costs require teamwork, both inside the company and among all the marketing
channel organizations. Inside, the company's various departments must work closely together to
maximize its own logistics performance. Outside, the company must integrate its logistics
system with those of its suppliers and customers to maximize the performance of the entire
distribution network.
AACSB: Interpersonal relations and teamwork
Skill: Concept
Difficulty: Easy
168) Why are companies increasingly turning to third-party logistics providers (3PLs)?
Answer: A third-party logistics provider is an independent company that performs any or all of
the functions required to get a producer's product to market, helping clients to tighten up
sluggish, overstuffed supply chains, slash inventories, and get products to customers more
quickly and reliably. Companies use third-party logistics providers because getting the product
to market is the main focus of 3PLs, so they can often do it more efficiently and at a lower cost.
Second, outsourcing logistics frees a company to focus more intensely on its core business.
Finally, integrated logistics companies understand increasingly complex logistics
environments. For example, third-party logistics partners can be especially helpful to
companies attempting to expand their global market coverage.
Skill: Concept
Principles of Marketing, 17e (Kotler/Armstrong)

Chapter 13 Retailing and Wholesaling
1) includes all the activities involved in selling products or services directly to final
consumers for their personal, nonbusiness use.
A) Franchising
B) Retailing
C) Brokering
D) Wholesaling
E) Disintermediatio
n Answer: B
Skill: Concept
Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the
major types of retailers.
Difficulty: Easy
2) Many institutions, including retailers, wholesalers, and do retailing.

A) schools
B) government agencies
C) factory farmers
D) manufacturers
E) defense contractors
Answer: D
Skill: Concept
Difficulty: Easy
3) Retailers connect brands with consumers in the phases of the buying process.
A) need identification
B) evaluation of alternatives
C) final
D) information gathering
E) post-purchase
Answer: C Skill:
Concept
Difficulty: Easy
4) involves using in-store promotions and advertising to extend brand equity to "the
last mile" and encourage favorable point-of-purchase decisions.
A) Differentiation
B) Shopper marketing
C) Social media marketing
D) Retailer marketing
E) Segmentatio
n Answer: B
Skill: Concept
Difficulty: Easy
5) creates a seamless cross-channel buying experience that integrates in-store, online,

and mobile shopping.
A) Shopper marketing
B) Point-of-purchase marketing
C) Social media marketing
D) Virtual marketing
E) Omni-channel
retailing Answer: E
Skill: Concept
Difficulty: Easy
6) Retailers are classified on characteristics including the amount of service they offer,
the breadth and depth of their product lines, how they are organized, and .
A) the relative prices they charge
B) the number of locations they have
C) the strength of their Internet presence
D) their sustainability and environmental policies
E) the stability of their financial
situation Answer: A
Skill: Concept
7) At Neiman Marcus, a first-class department store, customers shop for high-end products and
they are assisted in every phase of the shopping process. Neiman Marcus is a .
A) full-service retailer
B) limited-service retailer
C) self-service retailer
D) specialty store
E) superstore
Answer: A
Skill: Concept
8) is a type of service offered by those retailers who serve customers that are willing
to perform their own "locate-compare-select" process in order to save money.
A) Limited-service
B) Self-service
C) Full-service
D) Specialty-service
E) Wholesaling
Answer: B
Skill: Concept
Difficulty: Easy
9) are retailers that offer sales assistance because they carry more shopping goods
about which customers might need information.
A) Self-service retailers
B) Full-service retailers
C) Off-price retailers
D) Limited-service retailers
E) Specialty-service
retailers Answer: D
Skill: Concept
Difficulty: Easy
10) Which type of retailer usually carries more specialty goods at high prices and is more
likely to provide customers with assistance in every phase of the shopping process?
A) self-service retailer
C) full-service retailer
D) independent retailer
E) off-price
retailer Answer: C
Skill: Concept
Difficulty: Easy
11) At JCPenney, a mid-level department store, customers shop for moderately priced
products and they are assisted in some phases of the shopping process. JCPenney is a .
D) specialty store
E) superstore
Answer: B
Skill: Concept
12) Which type of retailer is most likely to require its employees to focus most on
assisting customers as they shop?
A) self-service retailer
B) full-service retailer
C) off-price retailer
D) limited-service retailer
E) convenience
retailer Answer: B
Skill: Concept
Difficulty: Easy
13) Today, are flourishing due to the increased use of market segmentation and
market targeting.
A) chain stores
B) specialty stores
C) superstores
D) discount stores
E) off-price
stores Answer: B
Skill: Concept
Difficulty: Easy
14) Specialty stores carry with within them.

A) only convenience products; shallow assortments
B) narrow product lines; deep assortments
C) narrow product lines; shallow assortments
D) wide product lines; shallow assortments
E) wide product lines; deep
assortments Answer: B
Skill: Concept
15) Which type of store carries a wide variety of product lines and has been squeezed in recent
years between more focused and flexible specialty stores on the one hand and more efficient,
lower-priced discounters on the other?
A) warehouse clubs
B) department store
C) factory outlet
D) merchant wholesaler
E) category specialist
Answer: B
Skill: Concept
16) are facing slow sales growth because of slower population growth, increased
competition, and the rapid growth of out-of-home eating.
A) Warehouse clubs
B) Off-price retailers
C) Discount stores
D) Supermarkets
E) Factory
outlets Answer:
D
Skill: Concept
Difficulty: Easy
17) Which of the following is the most frequently visited type of retail store?
A) convenience store
B) department store
C) supermarket
D) superstore
E) off-price
retailer Answer: C
Skill: Concept
Difficulty: Easy
18) A is a small store, located near a residential area that is open long hours seven
days a week and carries a limited line of high-turnover goods.
B) chain store
C) department store
D) supermarket
E) specialty store
Answer: A
Skill: Concept
Difficulty: Easy
19) Which type of store is much larger than regular supermarkets and offers a large
assortment of routinely purchased food products, nonfood items, and services?
A) off-price retailer
B) specialty store
C) factory outlet
D) superstore
E) convenience store
Answer: D
Skill: Concept
Difficulty: Easy
20) Which type of store carries a deep assortment of a particular product line, has
knowledgeable staff, and can be viewed as a giant specialty store?
A) category killer
B) convenience store
C) factory outlet
D) warehouse club
E) off-price
retailer Answer: A
Skill: Concept
21) Home Depot and PetSmart are examples of .

A) factory outlets
B) warehouse clubs
C) superstores
D) off-price retailers
E) category killers
Answer: E
Skill: Concept
Difficulty: Easy
22) Which of the following would be considered a service retailer?
A) factory outlets
B) supermarkets
C) jewelry stores
D) restaurants
E) gas stations
Answer: D
Skill: Concept
Difficulty: Easy
23) retailers in the United States are growing faster than product retailers.
A) Discount
B) Merchant
C) Service
D) Specialty
E) Off-price
Answer: C
Skill: Concept
24) sell standard merchandise at lower prices by accepting lower margins and selling
higher volume.
A) Merchant wholesalers
B) Discount stores
C) Full-service retailers
D) Limited-service retailers
E) Factory
outlets Answer:
B
Skill: Concept
Difficulty: Easy
25) The early cut expenses by offering few services and operating in warehouse-like
facilities in low-rent, heavily traveled districts.
A) department stores
B) hypermarkets
C) discount stores
D) supermarkets
E) full-service
retailers Answer: C
Skill: Concept
Difficulty: Easy
26) As discount stores traded up, have filled the ultra low-price, high-volume gap by
buying at less-than-regular wholesale prices and charging consumers less than retail.
A) off-price retailers
B) specialty stores
C) convenience stores
D) chain stores
E) supercenter
s Answer: A
Skill: Concept
Difficulty: Easy
27) Which of the following is NOT a type of off-price retailer?

A) independent
B) factory outlet
C) warehouse club
D) category killer
E) wholesale
club Answer: D
Skill: Concept
28) are manufacturer-owned and operated stores that offer prices as low as
50 percent below retail on a wide range of mostly surplus, discounted, or irregular
items.
A) Category killers
B) Factory outlets
C) Specialty stores
D) Superstores
E) Power
centers Answer:
B
Skill: Concept
Difficulty: Easy
29) Which of the following is an off-price retailer that operates in a huge, warehouse-
like facility and offers few frills?
A) warehouse club
B) service retailer
C) convenience store
D) hypermarket
E) superstore
Answer: A
Skill: Concept
Difficulty: Easy
30) are two or more outlets that are commonly owned and controlled.
A) Corporate chains
B) Convenience stores
C) Off-price retailers
D) Independent off-price retailers
E) Power
centers Answer:
A Skill: Concept
Difficulty: Easy
31) As a result of the great success of corporate chains, many independent stores choose to
band together in either a voluntary chain or a .
A) factory outlet
B) retailer cooperative
C) wholesale club
D) warehouse club
E) convenience
cooperative Answer: B
Skill: Concept
Difficulty: Easy
32) A is a wholesaler-sponsored group of independent retailers that engages in group

buying and common merchandising.
A) voluntary chain
B) retailer cooperative
C) franchise
D) wholesale club
E) warehouse club
Answer: A
Skill: Concept
Difficulty: Easy
33) McDonald's, Subway, and Jiffy Lube are all examples of .

A) voluntary chains
B) retailer cooperatives
C) franchises
D) category killers
E) power centers
Answer: C
Skill: Concept
Difficulty: Easy
34) Which of the following kind of organization best represents a contractual association
based on some unique product or service, a method of doing business, or a trade name or
goodwill?
A) corporate chain
B) franchise
C) voluntary chain
D) retailer cooperative
E) warehouse club
Answer: B
Skill: Concept
35) Sears, Target, and Kroger are examples of .

A) voluntary chains
B) retailer cooperatives
C) corporate chains
D) franchise organizations
E) warehouse clubs
Answer: C
Skill: Concept
36) Independent Grocers Alliance, Do-It Best, and Western Auto are examples of .
A) franchise organizations
B) warehouse clubs
C) voluntary chains
D) category killers
E) wholesale clubs
Answer: C
Skill: Concept
Difficulty: Easy
37) GameStop sells only video games and systems, offering a narrow product line with a
deep assortment within that line. GameStop is a(n) .
A) department store
B) convenience store
C) category killer
D) specialty store
E) off-price
retailer Answer: D
Skill: Application
Difficulty: Easy
38) Stop-N-Go , 7-Eleven, and Circle K are examples of .

A) department stores
B) convenience stores
C) category killers
D) specialty stores
E) supermarket
s Answer: B
Skill: Application
39) Which of the following terms best describes a large, low-cost, low-margin, high-
volume, self-service store that carries a wide variety of grocery and household products?
B) supermarket
C) specialty store
D) warehouse club
E) factory
outlet Answer:
B
Skill: Concept
Difficulty: Easy
40) Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a
variety of producers at less-than-regular wholesale prices and then charges customers less
than retail, is a(n) .
A) specialty store
B) off-price retailer
C) factory outlet
D) wholesale club
E) category killer
Answer: B
Skill: Application
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe
store, a small restaurant, and a grocery store. Over the next two decades, the small town
transformed into an international tourist attraction, attracting thousands of tourists who were
intrigued by the lifestyle of Shipshewana's largest population—the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their
town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small
display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months,
the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty
items. No other shop offers the same variety.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually
hired three Amish friends to sew and embroider napkins and other textiles as customers had
requested such items. In addition, two women from the Amish community sought permission
from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays,
when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The
Millers also hired four more people to help customers throughout the purchasing process and to
provide the required product-related information to the customers.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy
things made in China or Taiwan. They want real, Amish-made goods."
41) Indiana Wood can be best classified as a(n) .

B) industrial distributor
D) warehouse club
E) limited-service
retailer Answer: A
Skill: Application
42) Retailers can also be classified by the length and breadth of their product assortments. In
terms of product line, what kind of retailer is Indiana Wood?
A) supermarket
B) specialty store
C) category killer
D) department store
E) convenience store
Answer: B
Skill: Application
43) Wholesaling includes all the activities involved in selling products or services directly to
final consumers for their personal, nonbusiness use.
Answer: FALSE
Skill: Concept
Difficulty: Easy
44) Shopper marketing involves focusing the entire marketing process—from product and
brand development to logistics, promotion, and merchandisings—toward turning shoppers into
buyers at the point of sale.
Answer: TRUE
Skill: Concept
Difficulty: Easy
45) Department stores carry narrow product lines with deep assortments within those lines.
Answer: FALSE
Skill: Concept
46) Self-service retailers serve customers who are willing to perform their own locate-
compare- select process to save time or money.
Answer: TRUE
Skill: Concept
Difficulty: Easy
47) Full-service stores usually carry more specialty goods for which customers need or want
assistance or advice.
Answer: TRUE
Skill: Concept
Difficulty: Easy
48) In recent years, convenience stores have redesigned their stores to closely focus on serving
their primary target market made up of young, blue-collar men.
Answer: FALSE
Skill: Concept
49) Superstores are much larger than regular supermarkets and offer a large assortment
of routinely purchased food products, nonfood items, and services.
Answer: TRUE
Skill: Concept
50) Supermarkets sell a limited selection of goods at deep discounts to consumers who pay
membership fees.
Answer: FALSE
Skill: Concept
Difficulty: Easy
51) Supermarkets are located near residential areas and are open long hours, seven days a week.
They carry a limited line of high-turnover goods.
Answer: FALSE
Skill: Concept
Difficulty: Easy
52) Category killers are giant specialty stores that carry a very deep assortment of a particular
line.
Answer: TRUE
Skill: Concept
Difficulty: Easy
53) Off-price retailers pay regular wholesale prices for their merchandise but maintain
low prices by accepting lower margins and selling higher volume.
Answer: FALSE
Skill: Concept
54) A discount store buys at less-than-regular wholesale prices and charges consumers less
than retail.
Answer: FALSE
Skill: Concept
55) Independent off-price retailers either are independently owned and run or are divisions of
larger retail corporations.
Answer: TRUE
Skill: Concept
Difficulty: Easy
56) Corporate chains are two or more outlets that are commonly owned and
controlled. Answer: TRUE
Skill: Concept
Difficulty: Easy
57) A voluntary chain is a wholesaler-sponsored group of independent retailers that engages

in group buying and common merchandising.
Answer: TRUE
Skill: Concept
Difficulty: Easy
58) In a retailer cooperative, independent retailers band together to set up a jointly owned,
central wholesale operation and conduct joint merchandising and promotion efforts.
Answer: TRUE
Skill: Concept
Difficulty: Easy
59) Franchises constitute only a small portion of all retail sales in the United States.
Answer: FALSE
Skill: Concept
Difficulty: Easy
60) Retail stores can be classified in terms of several characteristics. Name four of them.
Answer: Retail stores can be classified based on the amount of service they offer, the breadth
and depth of their product lines, the relative prices they charge, and how they are organized.
Skill: Concept
Difficulty: Easy
61) Compare and contrast specialty stores and convenience stores.

Answer: Specialty stores carry narrow product lines with deep assortments within those lines.
Convenience stores are small stores that carry a limited line of high-turnover convenience
goods. The majority of their revenues come from sales of gasoline, cigarettes, and beverages.
Skill: Concept
Difficulty: Easy
62) Describe the differences between discount stores and off-price retailers.
Answer: A discount store buys at regular wholesale prices but sells standard merchandise at
lower prices by accepting lower margins and selling higher volume. Off-price retailers buy
at less-than-regular wholesale prices and charge consumers less than retail.
Skill: Concept
Difficulty: Easy
63) What types of products do specialty stores carry? Give an example of a specialty store.
Answer: Student answers will vary. Specialty stores carry narrow product lines with deep
assortments within those lines. Today, specialty stores are flourishing. The increasing use of
market segmentation, market targeting, and product specialization has resulted in a greater
need for stores that focus on specific products and segments. Some examples of specialty stores
are Tiffany and REI.
Skill: Concept
Difficulty: Easy
64) How have department stores responded to increased competition by specialty stores and
lower-priced discounters?
Answer: Many department stores have added promotional pricing to meet the threat; in
addition, they have stepped up the use of store brands and single-brand "designer shops" to
compete with specialty stores. Department stores are also trying mail order, telephone, and
Web selling.
Skill: Concept
65) What is a category killer? Provide an example and a description of a category killer.
Answer: Student answers will vary. A category killer is a giant specialty store that carries a
very deep assortment of a particular line. They feature stores the size of airplane hangars that
carry a very deep assortment of a particular line. Category killers are found in a wide range of
categories, including electronics, home-improvement products, books, baby gear, toys, linens
and towels, party goods, sporting goods, and even pet supplies.
Skill: Concept
Difficulty: Easy
66) How can discount stores sell merchandise at lower prices?

Answer: Discount stores sell merchandise at lower prices by accepting lower margins and
selling higher volumes.
Skill: Concept
Difficulty: Easy
67) What are the different types of off-price retailers?
Answer: The three main types of off-price retailers are independents, factory outlets, and
warehouse clubs. Independent off-price retailers either are independently owned and run or are
divisions of larger retail corporations. A factory outlet is an off-price retailing operation that is
owned and operated by a manufacturer and normally carries the manufacturer's surplus,
discontinued, or irregular goods. A warehouse club is an off-price retailer that sells a limited
selection of brand-name grocery items, appliances, clothing, and other goods at deep discounts
to members who pay annual membership fees.
Skill: Concept
68) How does a retailer cooperative function?

Answer: A retailer cooperative is a group of retailers that come together to set up a jointly
owned, central wholesale operation, and conduct joint merchandising and promotion efforts.
Through a retailer cooperative, independents can match the buying and promotion economies
of corporate chains.
Skill: Concept
Difficulty: Easy
69) Describe the levels of service that retailers can offer. Provide an example of each type
of retailer.
Answer: Student answers will vary. Amount of service can include self-service to serve
customers who are willing to perform their own locate-compare-select process to save time and
money. It is the basis of all discount operations and typically used by retailers selling
convenience goods. Examples include supermarkets, Target, and Kohl's. It can also include
limited-service retailers that provide more sales assistance because they carry more shopping
goods about which customers need information. Examples include Sears and JCPenney. The
third type is full-retailers that assist customers in every phase of the shopping process. These
stores usually carry more specialty goods for which customers need or want assistance or
advice. Examples include Nordstrom or Neiman Marcus.
Skill: Concept
Difficulty: Easy
70) Identify and describe the different types of retailers, based on their product lines.
Provide an example of each type of retailer.
Answer: Student answers will vary.
-Specialty stores are stores with narrow product lines and deep assortments within those lines.
Examples include REI, Sephora and Williams-Sonoma.
-Department stores carry a wide variety of product lines, each operated as a separate
department. Examples include Macy's and Neiman Marcus.
-Supermarkets are large, low-cost, self-service stores that carry a wide variety of grocery and
household products. Examples include Safeway and Kroger.
-Convenience stores are small stores, open long hours, that carry a limited line of high-turnover
convenience goods. Examples include 7-Eleven, Stop-N-Go, and Circle K.
-Superstores are much larger than supermarkets and offer a large assortment of routinely
purchased food products, nonfood items, and services. Examples include Walmart and Target.
-Category killers are giant specialty stores that carry a very deep assortment of a specific
product line. Examples include Best Buy, Home Depot, and PetSmart.
-Service retailers are retailers whose product line is actually a service; examples include hotels,
airlines, banks, colleges, and many others. Specific examples include Holiday Inn, Southwest
Airlines, and SuperCuts.
Skill: Concept
71) Describe the different types of off-price retailers. Provide examples of each
type. Answer: Student answers will vary.
-A discount store is a retail operation that sells standard merchandise at lower prices by
accepting lower margins and selling at higher volume. Examples include Walmart, Costco,
Dollar General and Target.
-An off-price retailer is a retailer that buys at less-than-regular wholesale prices and sells at
less than retail. Off-price retailers can be found in all areas, from food, clothing, and
electronics to no-frills banking and discount brokerages.
-An independent off-price retailer is an off-price retailer that is independently owned and
operated or a division of a larger retail corporation. Examples include TJ Maxx and Marshalls.
-A factory outlet is an off-price retailing operation that is owned and operated by a
manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods.
Examples include J. Crew, Gap, Coach and Mikasa.
-A warehouse club is an off-price retailer that sells a limited selection of brand name grocery
items, appliances, clothing, and other goods at deep discounts to members who pay annual
membership fees. Examples include Costco, Sam's Club, and BJ's.
Skill: Concept
72) Although many retail stores are independently owned, others band together under some
form of corporate or contractual organization. Describe the four kinds of corporate or
contractual organizations.
Answer:
-Corporate chains are two or more outlets that are commonly owned and controlled. Their size
allows them to buy in large quantities at lower prices and gain promotional economies. They
can hire specialists to deal with areas such as pricing, promotion, merchandising, inventory
control, and sales forecasting. Examples include Macy's, Target, and CVS.
-The voluntary chain is a wholesaler-sponsored group of independent retailers that engages in
group buying and common merchandising. Examples include the Independent Grocers
Alliance, Western Auto, and Do-It Best hardware stores.
-The other type of contractual association is the retailer cooperative, a group of independent
retailers that band together to set up a jointly owned, central wholesale operation and conduct
joint merchandising and promotion efforts. Examples are Associated Grocers and Ace
Hardware. These organizations give independents the buying and promotion economies they
need to meet the prices of corporate chains.
-Another form of contractual retail organization is a franchise. The main difference between
franchise organizations and other contractual systems (voluntary chains and retail cooperatives)
is that franchise systems are normally based on some unique product or service; a method of
doing business; or the trade name, goodwill, or patent that the franchisor has developed.
Franchising has been prominent in fast-food restaurants, motels, health and fitness centers, auto
sales and service dealerships, and real estate agencies. Examples include McDonald's, Subway,
and Jiffy Lube.
Skill: Concept
73) Describe the differences between chain stores and franchises.

Answer: Chain stores consist of two or more outlets that are commonly owned and controlled.
Chain stores have the advantage of buying in larger quantities at lower prices and sharing
resources to hire specialists to help with decisions in pricing, promotion, merchandising,
inventory, and sales forecasting. Franchises are not commonly owned and controlled; instead, a
franchise is a contractual association between a manufacturer, wholesaler, or service
organization and an independent businessperson. The system is normally based on some
unique product or service; a method of doing business; or a trade name, goodwill, or patent that
the franchisor has developed.
Skill: Concept
74) In recent years, service differentiation among retailers has .
A) increased at a steady rate
B) decreased
C) stayed the same
D) increased exponentially
E) tripled
Answer: B
Skill: Concept
Objective: LO 13.2: Describe the major retailer marketing decisions.
Difficulty: Easy
75) Changes to service differentiation include all of the following EXCEPT .

A) smarter customers
B) decreased services at department stores
C) more price-sensitive consumers
D) customers' willingness to pay more for identical brands
E) increased services from
discounters Answer: D
Skill: Application
76) Daizy's is a shop that carries only plus-size clothing. According to this information,
Daizy's differentiates itself from its competitors based on .
A) service mix
B) pricing
C) product assortment
D) store atmosphere
E) distribution strategy
Answer: C
Skill: Application
77) were the main form of retail clusters until the 1950s.
A) Strip malls
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Regional shopping
malls Answer: D
Skill: Concept
Difficulty: Easy
78) A large retailer of home improvement and construction products offers "how-to" classes for
do-it-yourselfers, featuring instructions on how to complete home improvement projects using
products sold at its stores. This is an example of how the retailer has differentiated itself
through its .
A) product assortment
B) services mix
C) segmentation
D) atmosphere
E) pricing
Answer: B
Skill: Application
79) Until retailers their markets, they cannot make consistent decisions about product
assortment, services, pricing, or advertising.
A) create
B) communicate with
C) divide up
D) define and profile
E) design products for
Answer: D
Skill: Application
80) A contains from 50 to 100 stores, is like a covered mini-downtown, and attracts
customers from a wide area.
A) community shopping center
B) neighborhood shopping center
C) central business district
D) regional shopping center
E) strip mall
Answer: D
Skill: Concept
Difficulty: Easy
81) Upon determining who will want the product, retailers must determine in more detail how
to in those markets.
A) differentiate and position themselves
B) market themselves
C) entice customers to them
D) offer the correct products
E) properly price the product
offerings Answer: A
Skill: Application
82) A contains between 15 and 50 retail stores, including a department or variety store,
a supermarket, specialty stores, professional offices, and sometimes a bank.
A) community shopping center
B) neighborhood shopping center
C) strip mall
D) regional shopping center
E) power center
Answer: A
Skill: Concept
Difficulty: Easy
83) In addition to segmenting and targeting the correct market, which of the following is
NOT an area in which marketers must make decisions?
B) services mix
C) store's atmosphere
D) using experiential retailing
E) manufacturing
schedules Answer: E
Skill: Application
84) A generally contains between 5 and 15 stores. It is close and convenient for
consumers, usually contains a supermarket, perhaps a discount store, and several service stores
such as a dry cleaner, a drugstore, and a hardware store.
A) regional shopping center
B) community shopping center
C) neighborhood shopping center
D) warehouse club
E) factory
outlet Answer:
C Skill:
Concept
Difficulty: Easy
85) An ideal price policy scenario for retailers would be to achieve while earning
.
A) low volume; high markups
B) low volume; low markups
C) high volume; high markups
D) high volume; low markups
E) high volume; zero
markups Answer: C
Skill: Concept
86) In-store demonstrations, displays, sales, and loyalty programs are examples of .
A) direct marketing
B) sales promotion
C) public relations
D) personal selling
E) affinity
marketing Answer:
B
Skill: Concept
Difficulty: Easy
87) Neighborhood shopping centers are also known as .

A) power centers
B) lifestyle centers
C) warehouse clubs
D) strip malls
E) regional shopping centers
Answer: D
Skill: Concept
Difficulty: Easy
88) Press conferences, speeches, store openings, special events, newsletters, and store
magazines are examples of activities used by retailers to promote themselves.
A) public relations
B) sales promotions
C) personal selling
D) affinity marketing
E) social
marketing Answer:
A
Skill: Concept
89) Digital promotions have grown in usage and include e-mail, social media, Web sites, and
.
A) demonstrations
B) displays
C) store flyers
D) newsletters
E) online ads and video
Answer: E
Skill: Concept
Difficulty: Easy
90) Which of the following is most likely gained by stores that cluster together?
A) decreased competition
B) increased customer pulling power
C) compliance with franchise agreements
D) creation of retailer cooperatives
E) standardization of the service
mix Answer: B
Skill: Concept
91) A is a group of retail businesses built on a site that is planned, developed, owned,
and managed as a unit.
A) warehouse club
B) franchise
C) shopping center
D) supermarket
E) hypermarket
Answer: C
Skill: Concept
Difficulty: Easy
92) Most shopping centers are .

A) strip malls
B) regional shopping malls
C) community shopping centers
D) lifestyle centers
E) power centers
Answer: A Skill:
Concept
93) are huge unenclosed shopping centers consisting of a long strip of retail stores,
including at least one large, freestanding anchor store like Walmart. Each store has its own
entrance with parking directly in front for shoppers who wish to visit only one store.
A) Shopping malls
B) Power centers
C) Superstores
D) Chain stores
E) Regional shopping centers
Answer: B
Skill: Concept
Difficulty: Easy
94) A small, open-air mall with upscale stores, convenient locations, and nonretail
activities, such as a playground, skating rink, hotel, dining establishments, and a movie
theater, is an example of a .
A) regional shopping center
B) lifestyle center
C) community shopping center
D) franchise
E) power center
Answer: B
Skill: Concept
Difficulty: Easy
95) Springfield, a convenience store, has recently begun to redesign and restock its stores to
offer a more upscale environment with products such as house wines and fresh foods. This
information indicates that Springfield has most likely changed its .
A) positioning
B) price strategy
C) service level
D) corporate identity
E) organizational
structure Answer: A
Skill: Application
96) Cabela's stores are as much natural history museums for outdoor enthusiasts as they are
retail outlets. This information indicates that Cabela's is practicing .
A) wholesaling
B) nonstore retailing
C) shopper marketing
D) experiential retailing
E) showroomin
g Answer: D
Skill: Application
97) Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to
other stores.
A) align itself with
B) differentiate itself from
C) cluster with
D) affect the store atmosphere of
E) converge
with Answer: B
Skill: Application
98) The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each
table is covered with a white linen cloth. The colors are limited to earth tones with an
occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that
seems familiar but unrecognizable. The smells are extraordinarily varied. This is a
description of the restaurant's .
A) promotions
B) target
C) atmosphere
D) services mix
E) product assortment
Answer: C
Skill: Application
99) Which of the following best describes a similarity between Costco and Walmart?
A) Both are warehouse clubs.
B) Both target the same affluent market.
C) Both are specialty stores.
D) Both use everyday low pricing.
E) Both are examples of merchant wholesalers.
Answer: D
Skill: Concept
100) Macy's department stores carry a wide range of product lines, including clothing, jewelry,
kitchenware, and home furnishings. Macy's typically charges a relatively high markup, but also
holds frequent sales and price promotions, in particular offering discounts to customers who
use a Macy's credit card. Macy's uses .
A) self-service retailing
B) experiential retailing
C) high-low pricing
D) everyday low pricing
E) retail
convergence
Answer: C
Skill: Application
101) Which of the following is most likely true about shoppers who prefer to shop at
"lifestyle centers"?
A) They use coupons.
B) They prefer upscale stores.
C) They prefer indoor shopping locations.
D) They rarely dine out in expensive restaurants.
E) They are motivated by deals on last year's
merchandise. Answer: B
Skill: Critical Thinking
102) The authentic Amish décor of Indiana Wood's contributes to the store's .
B) services mix
C) atmosphere
D) segmentation
E) retail
convergence
Answer: C
Skill: Application
Difficulty: Easy
103) Retailers first must position themselves in a market and then decide how they will define
the target customers in these markets.
Answer: FALSE
Skill: Concept
104) Retailers must work to ensure customers identify with their products. Differentiation
and positioning are vital to communicating this message.
Answer: TRUE
Skill: Concept
105) The colors, layout, and music in a store or a product package are only minor aspects of the
shopping experience and marketers spend little time making decisions about them.
Answer: FALSE
Skill: Concept
106) A neighborhood shopping center has from 50 to more than 100

stores. Answer: FALSE
Skill: Concept
107) A strip mall contains between 5 and 15 retail

stores. Answer: TRUE
Skill: Concept
Difficulty: Easy
108) Explain how Whole Foods is able to compete against Walmart.

Answer: Walmart owns the low-price position, so other grocery chains such as Whole Foods
must position themselves differently. Rather than try to compete directly with Walmart, Whole
Foods is positioned away from Walmart. It targets a smaller group of upscale customers and
offers them organic, gourmet foods in a cheerful, aesthetically pleasing environment.
Skill: Application
109) What attracts shoppers to a power center?

Answer: Power centers are unenclosed shopping centers that consist of a long strip of retail
stores, each store with its own entrance with parking directly in front for shoppers who wish to
visit only one store. A power center offers convenience and variety for shoppers.
Skill: Concept
Difficulty: Easy
110) Explain how Whole Foods is able to compete against Walmart.
Answer: Walmart owns the low-price position, so other grocery chains such as Whole Foods
must position themselves differently. Rather than try to compete directly with Walmart, Whole
Foods is positioned away from Walmart. It targets a smaller group of upscale customers and
offers them organic, gourmet foods in a cheerful, aesthetically pleasing environment.
Skill: Application
111) What elements comprise a store's atmosphere?

Answer: A store's atmosphere includes the sights, sounds, and smells that customers typically
associate with the store.
Skill: Concept
Difficulty: Easy
112) How do the practices of high-low pricing and everyday low pricing differ?
Answer: With high-low pricing, a retailer charges higher prices on an everyday basis but also
has frequent sales and other price promotions; with everyday low pricing, a retailer for the most
part avoids sales and instead delivers constant, everyday low prices.
Skill: Concept
113) How have shopping centers changed in the past few decades?
Answer: Central business districts were the main form of retail cluster until the 1950s. Every
large city and town had a central business district with department stores, specialty stores,
banks, and movie theaters. When people began moving to the suburbs, however, these central
business districts, with their traffic, parking, and crime problems, began to lose business. In
recent years, many cities have joined with merchants to revive downtown shopping areas,
generally with only mixed success. Currently, shopping centers are described as a group of
retail businesses built on a site that is planned, developed, owned, and managed as a unit. They
are not generally located in the central business districts.
AACSB: Written and oral communication
Skill: Concept
114) The three types of shopping centers are regional shopping centers, community shopping
centers, and neighborhood shopping centers/strip malls. Describe how they are different
from each other.
Answer: Regional shopping centers are the largest shopping centers and they contain anywhere
from 40 to more than 200 stores. They attract customers from a wide area. Smaller than
regional shopping centers, community shopping centers contain between 15 and 40 stores.
They normally contain a branch of a department store or variety store, a supermarket, specialty
stores, professional offices, and sometimes a bank. Smaller still are neighborhood shopping
centers/strip malls, which generally contain five to 15 stores. They are close and convenient for
consumers, usually containing a supermarket, a discount store, and several service stores.
Skill: Concept
115) Many retailers are now experimenting with limited-time shops that allow them to
promote their brands to seasonal shoppers and create buzz in busy areas. Which of the
following terms best represents such shops?
A) power centers
B) strip malls
C) pop-up stores
D) category killers
E) lifestyle
centers Answer: C
Skill: Concept
Objective: LO 13.3: Discuss the major trends and developments in retailing.
Difficulty: Easy
116) Target recently opened temporary shops to celebrate limited-run collections by Jason
Wu in Toronto and Missoni in New York. These temporary shops are examples of .
A) lifestyle centers
B) pop-up stores
C) warehouse clubs
D) strip malls
E) category killers
Answer: B
Skill: Concept
Difficulty: Easy
117) The online and mobile equivalent of a pop-up store is .
A) door buster deals
B) Black Friday specials
C) high-low pricing
D) flash sales sites
E) everyday low
pricing Answer: D
Skill: Concept
Difficulty: Easy
118) When different types of retailers sell the same products at the same prices to the same
customers, thanks in part to the price transparency of the Internet, the retail forms appear to be
.
A) converging
B) differentiating
C) repositioning
D) adapting
E) declining
Answer: A
Skill: Concept
119) With their size and buying power, can offer better merchandise selections, good
service, and strong price savings to consumers.
A) convenience stores
B) franchises
C) megaretailers
D) power centers
E) lifestyle
centers Answer: C
Skill: Concept
120) is known as the merging of consumers, products, prices, and retailers.
A) Retail conglomeration
B) Consumer convergence
C) Price merging
D) Retail convergence
E) Retail
clustering Answer:
D
Skill: Concept
Difficulty: Easy
121) Which term refers to looking at merchandise at a traditional store and then purchasing the
merchandise online?
A) pop-up shopping
B) wheel-of-retailing
C) off-price retailing
D) showrooming
E) wholesalin
g Answer: D
Skill: Concept
Difficulty: Easy
122) Retail online sites, mobile apps, and social media influence .
A) overall retail sales
B) in-store buying
C) the number of likes and subscribers companies earn
D) customers and their followers
E) the number of products a company
manufactures Answer: B
Skill: Concept
Difficulty: Easy
123) Touchscreen kiosks, handheld shopping assistants, interactive dressing-room mirrors
and virtual sales associates are all examples of how retailers use technology to .
A) maintain inventory costs
B) send information between stores
C) meet consumers' expectations
D) produce more accurate forecasts
E) interact with
suppliers Answer: C
Skill: Concept
124) Store retailers must master , integrating store and online channels into a single
shopper experience.
A) showrooming
B) single-channel retailing
C) omni-channel retailing
D) webrooming
E) dual-channel retailing
Answer: C
Skill: Concept
125) Today's retailers increasingly adopt environmentally sustainable practices. Which of

the following is NOT one of these practices?
A) working with channel partners to reduce their environmental impact
B) cutting back on recycling programs
C) greening up their stores and operations
D) launching programs to help customers be more responsible
E) promoting more environmentally responsible
products Answer: B
Skill: Concept
126) Which of the following would be the most logical way for Indiana Wood to expand?
A) establishing an online presence
B) pursuing retail convergence
C) implementing RFID inventory tracking
D) establishing a community-gathering environment in the store
E) joining a producers'
cooperative Answer: A
Skill: Critical Thinking
127) Power centers tend to be smaller than lifestyle

centers. Answer: FALSE
Skill: Concept
128) The life cycle of new retail forms is getting

longer. Answer: FALSE
Skill: Concept
Difficulty: Easy
129) Retail convergence means lower competition for retailers and lower difficulty
in differentiating the product assortments of different types of retailers.
Answer: FALSE
Skill: Concept
130) Megaretailers have shifted the balance of power between retailers and producers, giving
retailers more power.
Answer: TRUE
Skill: Concept
Difficulty: Easy
131) Many shoppers now check out merchandise in-store and then buy it online. This process
is called webrooming.
Answer: TRUE
Skill: Application
132) While the process of showrooming can hurt in-store sales of merchandise, retailers can
make it a positive by enhancing the in-store shopping experience.
Answer: TRUE
Skill: Concept
133) Green retailing yields both top- and bottom-line benefits.

Answer: TRUE
Skill: Concept
134) What are pop-up stores? Provide an example to illustrate your answer.
Answer: Many retailers are now experimenting with limited-time pop-up stores that let them
promote their brands to seasonal shoppers and create buzz in busy areas. During the last
holiday season, for instance, Toys"R"Us set up approximately 150 temporary pop-up toy
boutiques, many located in malls that formerly housed recently bankrupt KB Toys stores.
Skill: Concept
135) What constitutes retail convergence?

Answer: Retail convergence is the coming together of shoppers, goods, and prices. Customers
of all income levels are shopping at the same stores, often for the same goods. Distinctions such
as discount store, specialty store, and department store are losing significance.
Skill: Application
136) Describe how nonstore retailing has grown in the past decade.
Answer: Though most purchases are still made in stores, more and more consumers are now
shopping using a broad range of nonstore alternatives, including mail-order, television, phone,
and online shopping. Easy-to-use Web sites, improved online service, mobile apps and
sophisticated search engines have all helped online business grow at a faster rate than retail
buying. All types of retailers now use direct and online channels, with traditional brick-and-
mortar retailers selling online, along with online-only retailers such as Amazon.com and eBay.
Much of the growth in online sales will go to multichannel retailers who provide service both in
stores and online. While the total percentage of nonstore retail sales is still small, it is growing
at a much faster rate than retail buying as a whole.
Skill: Concept
137) includes all activities involved in selling goods and services to those buying for
resale or business use.
A) Wholesaling
B) Retailing
C) Franchising
D) Discounting
E) Showroomin
g Answer: A
Skill: Concept
Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions.
Difficulty: Easy
138) buy mostly from producers and sell to retailers and industrial consumers.
A) Warehouse clubs
B) Factory outlets
C) Wholesalers
D) Discount stores
E) Megaretailer
s Answer: C
Skill: Concept
Difficulty: Easy
139) Which of the following wholesaler's channel functions is demonstrated when a

wholesaler's sales force helps a manufacturer to reach many small customers at a low cost?
A) bulk-breaking
B) selling and promoting
C) buying and assortment building
D) risk bearing
E) rack
jobbing
Answer: B
Skill: Concept
140) Which of the following is NOT one of a wholesaler's channel functions?

A) financing
B) risk bearing
C) transportation
D) off-price retailing
E) bulk breaking
Answer: D
Skill: Concept

wholesaler holds inventories and thereby reduces inventory holding costs and risks of suppliers
and customers?
A) financing
B) transporting
D) warehousing
E) bulk breaking
Answer: D
Skill: Concept
buyer receives quicker delivery because wholesalers are located closer than producers?
A) financing
B) transportation
D) warehousing
E) risk bearing
Answer: B
Skill: Concept
Difficulty: Easy
143) Which of the following wholesaler's channel functions is exemplified by buying in carload
lots and then dividing these lots into small quantities?
A) warehousing
B) transportation
C) risk bearing
D) bulk breaking
E) selling and
promoting Answer: D
Skill: Concept
Difficulty: Easy
144) are the largest group of wholesalers. They include two broad types: full-
service wholesalers and limited-service wholesalers.
A) Brokers
B) Manufacturer sellers
C) Manufacturers' agents
D) Merchant wholesalers
E) Selling agents
Answer: D Skill:
Concept
Difficulty: Easy
145) What is the most common type of agent wholesaler?
A) wholesale merchant
C) limited-service wholesaler
D) manufacturers' representative
E) truck jobber
Answer: D
Skill: Concept
146) and do not take title to goods, and they perform only a few channel
functions.
A) Full-service wholesalers; limited-service wholesalers
B) Brokers; agents
C) Industrial distributors; cash-and-carry wholesalers
D) Cash-and-carry wholesalers; industrial distributors
E) Rack jobbers; off-price
retailers Answer: B
Skill: Concept
147) A(n) brings buyers and sellers together and assists in negotiations.
A) agent
B) broker
C) retailer
D) wholesaler
E) industrial
distributor Answer: B
Skill: Concept
Difficulty: Easy
148) A(n) does not take title to goods and represents buyers or sellers on a more
permanent basis than a broker.
A) full-service wholesaler
C) agent
D) retailer
E) cash-and-carry
wholesaler Answer: C
Skill: Concept
Difficulty: Easy
149) Which type of wholesaler sells to manufacturers rather than to retailers?

A) industrial distributor
B) full-service wholesaler
C) cash-and-carry wholesaler
D) wholesale merchant
E) limited-service
wholesaler Answer: A
Skill: Concept
150) are a type of limited-service wholesaler who carries a limited line of

semiperishable merchandise (such as milk, bread, and snack foods), which is sold for cash as
deliveries are made to supermarkets, small groceries, or hotels.
A) Industrial distributors
B) Wholesale merchants
C) Full-service wholesalers
D) Truck jobbers
E) Purchasing agents
Answer: D
Skill: Concept
Difficulty: Easy
151) are a type of limited-service wholesaler who does not carry inventory or handle
a product. They typically operate in bulk industries, such as coal, lumber, and heavy
equipment.
A) Wholesale merchants
B) Industrial distributors
C) Cash-and-carry wholesalers
D) Rack jobbers
E) Drop shippers
Answer: E
Skill: Concept
Difficulty: Easy
152) are agents who take physical possession of products and negotiate sales. They
deal mostly with agricultural marketing.
A) Industrial distributors
B) Cash-and-carry wholesalers
C) Purchasing officers
D) Rack jobbers
E) Commission
merchants Answer: E
Skill: Concept
153) are wholesalers who serve grocery and drug retailers, mostly in nonfood items.
They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory
records.
A) Purchasing agents
B) Rack jobbers
C) Drop shippers
D) Cash-and-carry wholesalers
E) Manufacturers' agents
Answer: B
Skill: Concept
Difficulty: Easy
154) Today's large, progressive wholesalers have successfully reacted to rising costs by
.
A) relocating to low-rent, low-tax areas
B) investing in information technology systems
C) investing less money in expensive machinery
D) reducing their markup rates
E) reducing promotional
activities Answer: B
Skill: Concept
Difficulty: Easy
155) Carey David's wholesale company helps retailers train salesclerks, improve store layouts
and displays, and set up inventory control systems. According to this information, which of
the following wholesaler's channel functions does Carey David provide?
A) buying and assortment building
B) selling and promotion services
C) risk bearing services
D) marketing information
E) management services and advice
Answer: E
Skill: Application
156) You own a small independent retail store in your neighborhood. You want to offer fresh
seafood, milk, and bread in your store. In this case, which of the following types of
wholesalers will serve you the best?
A) truck jobber
B) independent distributor
C) drop shipper
D) mail-order wholesaler
E) manufacturers' agent
Answer: A
Skill: Application
157) You own a neighborhood grocery store and would like to have non-food items
delivered, priced, displayed and inventoried by a wholesaler. You do not want to purchase
title to the goods. Which type of wholesaler best fits your needs?
A) cash-and-carry wholesaler
B) rack jobber
C) drop shipper
D) mail-order wholesaler
E) agents and brokers
Answer: B
Skill: Application
158) Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from
Chemical Inc. Then Chemical Inc. placed the order with the manufacturer, and the
manufacturer then transported the tablets directly to the Tony Pool store. In this case,
Chemical Inc. is an example of a .
A) drop shipper
B) truck jobber
C) rack jobber
D) full-service wholesaler
E) cash-and-carry
wholesaler Answer: A
Skill: Application
159) perform a role similar to that of brokers or agents but are part of the buyer's
organization.
A) Truck jobbers
B) Merchant wholesalers
C) Purchasing officers
D) Rack jobbers
E) Cash-and-carry
wholesalers Answer: C
Skill: Application
160) Wholesalers must to maintain their profits.
A) raise their prices to their retail customers
B) find efficient ways to deliver value to their customers
C) reduce the number of customers they work with
D) increase the number of services they offer
E) improve the relationships with the suppliers
Answer: C
Skill: Application
161) Like retailers, wholesalers must decide on product and service assortments, prices,
promotion, and place.
Answer: TRUE
Skill: Concept
162) Wholesalers realize that they increase value to their customers by watching for better
ways to meet the needs of their suppliers and target customers. This involves reducing the
services they provide to retailers.
Answer: FALSE
Skill: Concept
Difficulty: Easy
163) In an automated warehouse, orders are fed directly from the retailer's information system
to the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping
platform where they are assembled.
Answer: TRUE
Skill: Concept
Difficulty: Easy
164) Why would a producer use wholesalers rather than sell directly to retailers or consumers?
Answer: Wholesalers add value by performing one or more of the following channel functions:
selling and promotion, buying and assortment building, bulk breaking, warehousing,
transportation, financing, risk bearing, providing market information, and giving management
services and advice. Wholesalers can perform many channel functions more efficiently and
effectively than a producer can, allowing the producer to focus its energies on creating its
product.
Skill: Concept
165) How do merchant wholesalers and agents/brokers differ?

Answer: Merchant wholesalers "take title to" (or own) what they sell; agents/brokers merely
serve as liaisons, bringing buyers and sellers together.
Skill: Concept
Difficulty: Easy
166) How can wholesalers improve their use of promotions?

Answer: Many wholesalers do not view promotion as a team effort to sell, build, and service
major accounts; to address this issue, wholesalers should adopt some of the promotion
techniques used by retailers, such as developing an overall promotion strategy and making
greater use of supplier promotion materials and programs.
Skill: Concept
167) Explain the marketing decisions faced by wholesalers.
Answer: Wholesalers are faced with the marketing decisions of segmentation and targeting,
differentiation and promotion, and the marketing mix. Progressive wholesalers are adapting
their services to the needs of target customers and are seeking cost-reducing methods of doing
business. Faced with slow growth in their domestic markets and developments such as the
North American Free Trade Association, many large wholesalers are also now going global.
Wholesalers must decide on product and service assortments, prices, promotion, and place.
Wholesalers add customer value though the products and services they offer. Price is also an
important wholesaler decision. Wholesalers usually mark up the cost of goods by a standard
percentage. As their retail and industrial customers face sales and margin declines, these
customers turn to wholesalers, looking for lower prices. Wholesalers may, in turn, cut their
margins on some lines to keep important customers. They may also ask suppliers for special
price breaks in cases when they can turn them into an increase in the supplier's sales.
Although promotion can be critical to wholesaler success, most wholesalers are not promotion
minded. They use largely scattered and unplanned trade advertising, sales promotion, personal
selling, and public relations. They need to develop an overall promotion strategy and make
greater use of supplier promotion materials and programs. Digital and social media are
playing an increasingly important role. Finally, distribution (location) is important.
Wholesalers must choose their locations, facilities, and Web locations carefully.
Skill: Concept
168) Explain how wholesalers have been able to use technology to cut costs.
Answer: Many wholesalers have invested in automated warehouses and information
technology systems. Delivery time can be cut as orders are fed from the retailer's information
system directly into the wholesaler's. Automated warehouses increase efficiencies and drive
down costs, as mechanical devices can automatically pick up items and take them to a
shipping platform to be assembled. Wholesalers can also use technology for accounting,
billing, inventory control, and forecasting. These computerized, automated, and Web-based
systems help wholesalers contain the costs of ordering, shipping, and inventory holding.
Skill: Concept

Chapter 14 Engaging Consumers and Communicating Customer Value: Integrated
Marketing Communications Strategy
1) A company's total marketing communications mix consists of a specific blend of

advertising, sales promotion, public relations, personal selling, and direct-marketing tools that
the company uses to communicate customer value and build customer relationships. Which of
the following terms best describes this set of communications tools?
A) the product mix
B) product line filling
C) the promotion mix
D) the price mix
E) horizontal
diversification Answer: C
Skill: Concept
Objective: LO 14.1: Define the five promotion mix tools for communicating customer value.
Difficulty: Easy
2) Which of the following is one of the five major promotion tools?

A) market penetration
B) strategic positioning
C) product line filling
D) market diversification
E) direct and digital marketing
Answer: E
Skill: Concept
Difficulty: Easy
3) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an
identified sponsor is called and includes broadcast, mobile, print, and online forms.
A) sales promotion
B) advertising
C) direct and digital marketing
D) personal selling
E) public
relations Answer:
B
Skill: Concept
Difficulty: Easy
4) The use of short-term incentives to encourage the purchase or sale of a product or service is
called .
A) direct and digital marketing
B) sales promotion
C) personal selling
D) public relations
E) publicity
Answer: B
Skill: Concept
Difficulty: Easy
5) Which of the following promotion tools involves building up a good corporate image and
handling unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct and digital marketing
D) public relations
E) advertising
Answer: D
Skill: Concept
Difficulty: Easy
6) Which of the following promotion categories is most likely to include the use of
displays, discounts, coupons, and demonstrations?
A) sales promotion
B) direct and digital marketing
C) horizontal diversification
D) public relations
E) advertising
Answer: A
Skill: Concept
Difficulty: Easy
7) includes sales presentations, trade shows, and incentive programs.
A) Direct and digital marketing
B) Sales promotion
C) Personal selling
D) Public relations
E) Advertising
Answer: C
Skill: Concept
Difficulty: Easy
8) Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products
to wholesalers and individual customers. This is an example of .
A) sales promotion
B) personal selling
C) public relations
D) direct and digital marketing
E) advertising
Answer: B
Skill: Application
9) Which major promotion category uses catalogs, direct mail, e-mail, mobile marketing and
social media?
A) sales promotion
C) horizontal diversification
D) public relations
E) advertising
Answer: B
Skill: Concept
Difficulty: Easy
10) Which of the following promotion categories is most likely to use the promotion tools of
press releases, sponsorships, events, and Web pages?
A) sales promotion
C) advertising
D) public relations
E) horizontal
diversification Answer: D
Skill: Concept
Difficulty: Easy
11) In addition to the specific promotion tools, marketing communication requires

for greatest impact.
A) the engineering and manufacturing departments work together
B) the sales force lead the communication process
C) the advertising be developed with the manufacturers' representatives
D) the pubic relations staff work closely with the sales force
E) the promotion, product, price, and place be
coordinated Answer: E
Skill: Application
12) Advertising involves a personal presentation by the firm's sales force for the purpose of
making sales and building customer relationships.
Answer: FALSE
Skill: Concept
Difficulty: Easy
13) Sales promotion involves building up a good corporate image, and handling or heading
off unfavorable rumors, stories, and events.
Answer: FALSE
Skill: Concept
Difficulty: Easy
14) Direct and digital marketing involves engaging directly with carefully targeted individual
consumers and customer communities to both obtain an immediate response and build lasting
customer relationships.
Answer: TRUE
Skill: Concept
Difficulty: Easy
15) Direct and digital marketing includes catalogs, e-mail, direct mail, social media, and
mobile marketing.
Answer: TRUE
Skill: Concept
16) A company's marketing communications mix—also called its promotion mix—blends

five different components. List and define these components.
Answer: Advertising is any paid-for or nonpersonal presentation and promotion of ideas,
goods, or services by an identified sponsor. Sales promotion includes short-term incentives to
encourage the purchase or sale of a product or service. Public relations includes building good
relations with the company's various publics by obtaining favorable publicity, building up a
good corporate image, and handling or heading off unfavorable rumors, stories, or events.
Personal selling includes a personal presentation by the firm's sales force for the purpose of
making sales and building customer relationships. Direct marketing includes direct connections
with carefully targeted individual consumers to obtain an immediate response and cultivate
lasting customer relationships.
Skill: Concept
17) Changes to the marketing communications model include that consumers are changing and
are better informed, that marketing strategies are changing and are moving from mass
marketing, and that .
A) manufacturing processes are becoming more efficient
B) distribution of products worldwide is more feasible and cost-effective
C) segmenting and targeting of consumers are more detailed than ever before
D) digital technologies are changing the ways companies and customers communicate
E) retailing is more competitive with more sources of products available for
consumers Answer: D
Skill: Concept
Objective: LO 14.2: Discuss the changing communications landscape and the need for
integrated marketing communications.
18) Today's consumers do not need to rely on marketer-supplied information about
products and services because they can use to seek out a wealth of information.
A) push strategies
C) the Internet
D) personal selling
E) public
relations Answer:
C
Skill: Concept
Difficulty: Easy
19) Which of the following statements is true regarding today's marketing communications?
A) More marketers are shifting away from narrowly defined micromarkets and moving
toward mass marketing.
B) More customers have started relying on marketer-supplied information rather than
finding out information on their own.
C) Network television, magazines, newspapers, and other traditional mass media continue to
increase their dominance.
D) Focused marketing programs, which are designed to build closer relationships with
customers in more narrowly defined micromarkets, are no longer used by marketers.
E) Today's consumers are better informed about products and
services. Answer: E
Skill: Concept
20) Shifting away from mass marketing, marketers are developing which are
designed to build relationships with customers in more narrowly defined micromarkets.
A) focused marketing programs
B) horizontal diversification programs
C) backward integration strategies
D) new pull strategies
E) new push
strategies Answer: A
Skill: Concept
Difficulty: Easy
21) Which of the following is a specialized and highly targeted media selection that
an advertiser might use to reach smaller customer segments with personalized
content?
A) radio
B) magazines
C) newspapers
D) network television
E) online social networks
Answer: E
Skill: Concept
22) Companies are doing less and more as a result of the explosive
developments in communication technologies to better target smaller customer
segments.
A) personal selling; digital activities
B) public relations activities; digital activities
C) digital activities; mass marketing
D) mass marketing; digital marketing
E) viral marketing; word-of-mouth
marketing Answer: D
Skill: Concept
23) Which of the following statements is true regarding the old mass-media
communications model?
A) Mass-media costs are decreasing.
B) Mass-media audiences are increasing.
C) Many viewers are gaining control of message exposure through DVRs and video streaming.
D) Ad clutter is decreasing.
E) Internet ad spending has stagnated and more marketers are shifting toward TV
advertising. Answer: C
Skill: Concept
24) Of the various digital marketing categories, is the fastest-growing category.
A) blogs
B) e-mail
C) social media
D) mobile
E) brand Web
sites Answer: D
Skill: Concept
Difficulty: Easy
25) The key is to traditional mass media with online, mobile and social media to best
engage customers, communicate the brand message, and enhance the customer's brand
experiences.
A) prioritize
B) integrate
C) utilize
D) design
E) spend on
Answer: B
Skill: Concept
Difficulty: Easy
26) Marketers now view themselves as that create and share brand messages and
conversations with and among customers across a mix of paid, owned, earned, and shared
communication channels.
A) promotion managers
B) public relations managers
C) sales managers
D) content marketing managers
E) account
managers Answer:
D
Skill: Concept
Difficulty: Easy
27) Companies often fail to integrate their various messages to consumers because .
A) historically, consumers have been able to distinguish between message sources
B) advertising departments are reluctant to work with public relations professionals
C) communications often come from different parts of the company
D) personal selling and sales promotion are in direct conflict
E) firms have overemphasized the concept of brand contact
Answer: C
Skill: Concept
28) Consumers today receive commercial messages from a broad range of sources.
However, consumers the way marketers do.
A) don't distinguish between message sources
B) never pay attention to sales promotions
C) don't care about buzz marketing
D) are not able to block out messages
E) block out all media
messages Answer: A
Skill: Concept
29) Today, most companies are adopting the concept of , which carefully combines
and coordinates the company's many communication channels to deliver a clear, consistent,
and compelling message about the organization and its brands.
A) integrated marketing communications
B) pull strategy
C) vertical diversification
D) nonpersonal communication channels
E) buzz
marketing
Answer: A
Skill: Concept
Difficulty: Easy
30) Integrated marketing communications require a company's mass-market advertisements,
Web site, e-mail, and personal selling communications to all .
A) have equal portions of the advertising budget
B) use independent communications directors
C) develop separate marketing objectives
D) engage the same target audience
E) deliver a clear, consistent, and compelling
message Answer: E
Skill: Concept
31) Delia's is a clothing retailer that targets teenage girls. The company runs coordinated
promotions for its catalogs, Web site, and retail outlets. It uses the same models in its
catalog, print ads, and Web site. Delia's works to make sure its public relations activities as
well as its sales promotions harmonize with its advertising in all aspects. From this
information, we can infer that Delia's is using .
A) buzz marketing
B) experiential marketing
C) integrated marketing communication
D) word-of-mouth marketing
E) database marketing
Answer: C
Skill: Application
32) Excel Enterprises uses a Web site, online social networks, and print advertisements to
promote its products. Since Excel Enterprises practices integrated marketing communications,
all these different brand contacts maintain in design and tone.
A) variety
B) simplicity
C) creativity
D) consistency
E) flexibility
Answer: D
Skill: Application
33) To carefully integrate and coordinate the company's many communications channels
and produce greater sales impact, some companies appoint a(n) .
A) idea champion
B) marketing communications director
C) sales representative
D) business analyst
E) media planner
Answer: B
Skill: Concept
Difficulty: Easy
34) Direct marketing includes catalogs, direct-response TV, kiosks, the Internet, and
mobile marketing.
Answer: TRUE
Skill: Concept
35) As mass markets have fragmented, marketers have shifted away from mass
marketing. Answer: TRUE
Skill: Concept
Difficulty: Easy
36) Communications technologies such as cell phones and the Internet give companies new
media for interacting with targeted consumers, but these technologies also give consumers
more control over the advertising messages they receive.
Answer: TRUE
Skill: Concept
37) Mass marketers can expect consumers to distinguish between commercial message sources
to maintain a clear image of a company and its brands.
Answer: FALSE
Skill: Concept
38) The integrated marketing concept ties together all of the company's messages and
images. Answer: TRUE
Skill: Concept
Difficulty: Easy
39) Integrated marketing communications calls for recognizing all communications channels
where the customer may encounter the company and its brands.
Answer: TRUE
Skill: Concept
40) The shift toward digital communication allows companies to keep control of
message exposure.
Answer: FALSE
Skill: Concept
Difficulty: Easy
41) A marketing communications director has overall responsibility for the

company's communications efforts.
Answer: TRUE
Skill: Concept
Difficulty: Easy
42) Why should a company be concerned about integrating communications from
different sources within the company?
Answer: Customers won't separate conflicting or varying messages from different sources
within a company, so failing to integrate communications could lead to blurred consumer brand
perceptions.
Skill: Concept
43) How do integrated marketing communications build brand identity?

Answer: IMC builds brand identity and strong customer relationships by tying together all of
the company's messages and images.
Skill: Concept
44) Why are profound changes in marketing communications creating both exciting and scary
times for marketing communicators?
Answer: In the past, marketers relied heavily on mass marketing. Today, however, mass
markets have fragmented, consumers are better informed, and sweeping changes in technology
have changed how companies and consumers communicate with each other. These three factors
have led to a new marketing communications model that is specialized to reach smaller
customer segments with messages that are more personalized. Mass marketing can no longer be
solely relied upon to deliver a marketer's message. Although these changes may frighten
marketing communicators, these changes afford tremendous opportunities to reach new
customers and strengthen relationships with existing customers.
Skill: Application
45) Explain the concept of integrated marketing communications (IMC).
Answer: IMC calls for recognizing all touch points where the customer may encounter the
company and its brands. While implementing IMC, the company's goal should be to deliver a
consistent and positive message at each contact. Integrated marketing communications ties
together all of the company's messages and images. Its television and print ads have the same
brand message, look, and feel as its e-mail and personal selling communications. And its PR
materials project the same image as its Web site, online social networks, or mobile marketing
efforts.
Skill: Concept
46) In order to avoid shortsightedness, today marketers are moving toward viewing
communications as managing the .
A) organizational culture
B) nonpersonal communication channels
C) word-of-mouth influence
D) ongoing customer relationships with the company
E) product life
cycle Answer: D
Skill: Concept
Objective: LO 14.3: Outline the communication process and the steps in developing effective
marketing communications.
Difficulty: Easy
47) Communications programs need to be developed for specific niches, individuals, and
.
A) genders
B) countries
C) departments
D) products
E) segment
s Answer:
D
Skill: Concept
Difficulty: Easy
48) While using integrated marketing communications, the communications process should
start with a(n) .
A) advertising strategy
B) competitive-parity analysis
C) long-term public relations plan
D) audit of all potential customer touch points
E) strategy for implementing a social media
presence Answer: D
Skill: Concept
Difficulty: Easy
49) Which of the following is one of the four major communication functions?
A) coordination
B) distribution
C) noise
D) response
E) preference
Answer: D
Skill: Concept
Difficulty: Easy
50) refers to the process of putting thought into symbolic form.

A) Sending
B) Encoding
C) Decoding
D) Receiving
E) Feedback
Answer: B
Skill: Concept
Difficulty: Easy
51) HP's advertising agency assembles words and illustrations into an advertisement that
conveys the company's intended brand message. In the context of the communication process,
HP is .
A) messaging
B) decoding
C) sending
D) encoding
E) responding
Answer: D
Skill: Application
52) The decision to use an NBA star player to communicate the desirability of Nike
basketball shoes represents the process of the communication model.
A) sourcing
B) messaging
C) acknowledging
D) decoding
E) encoding
Answer: E
Skill: Application
53) A(n) is a set of symbols that the sender transmits.

A) encoder
B) feedback loop
C) message
D) media
E) decoder
Answer: C
Skill: Concept
Difficulty: Easy
54) In the communication process, an actual HP printer/fax machine advertisement would
be considered .
A) encoding
B) decoding
C) the product
D) the message
E) the
medium
Answer: D
Skill: Application
55) Which of the following terms best represents the communication channel that a company
uses to move its advertising messages from sender to receiver?
A) decoder
B) media
C) encoder
D) communicator
E) feedback loop
Answer: B
Skill: Concept
Difficulty: Easy
56) In a communication process, a receiver assigns meaning to the symbols encoded by a

company in its advertisements through a process known as .
A) integrating
B) reciprocating
C) acknowledging
D) decoding
E) coordinating
Answer: D
Skill: Concept
Difficulty: Easy
57) In the communication process, the reaction of the receiver after being exposed to a message
is called the .
A) response
B) disturbance
C) noise
D) code
E) distortion
Answer: A
Skill: Concept
Difficulty: Easy
58) When a customer lets a producer know something about its products or advertising, the
customer is providing .
A) decoding
B) noise
C) feedback
D) encoding
E) reverse
marketing Answer:
C
Skill: Concept
Difficulty: Easy
59) A consumer is reading a magazine with an advertisement, but due to a loud sound he is
distracted from reading the advertisement and is not able to grasp its key points. In the context
of the communication process, this unplanned static or distortion is called .
A) noise
B) encoding
C) feedback
D) response
E) decoding
Answer: A
Skill: Concept
60) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine
featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the new
makeup. In terms of the communication model, the sender of this message is .
A) Gigi Hadid
B) Ladies' Home Journal
C) readers who redeem the $2-off coupon
D) Maybelline
E) the target market to which Gigi Hadid
appeals Answer: D
Skill: Application
61) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine

featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the new
makeup. In terms of the communication model, the medium of this ad is .
A) Gigi Hadid
B) Ladies' Home Journal
C) readers who redeem the $2-off coupon
D) Maybelline
E) the target market to which Gigi Hadid
appeals Answer: B
Skill: Application
62) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured
actress Gigi Hadid and offered readers a $2-off coupon when they tried the new makeup. In
the context of the communication model, measuring which of the following would be the best
way for the source to measure feedback?
A) the number of subscribers to Ladies' Home Journal
B) the number of people who make up the target market
C) the number of people who redeem the coupon
D) the number of people who have purchased Maybelline products in the past
E) the number of people to whom Gigi Hadid is an appealing spokesperson
Answer: C
Skill: Application
63) In the communication process, the more the sender's field of experience that of
the receiver, the more the message is likely to be.
A) varies from; distinguishable
B) overlaps with; effective
C) connects with; ineffective
D) coincides with; creative
E) departs from; direct
Answer: B
Skill: Concept
64) The AIDA model identifies the characteristics of an effective .

A) advertising budget
B) channel of communication
C) marketing message
D) marketing mix
E) marketing response
Answer: C
Skill: Concept
Difficulty: Easy
65) To communicate effectively, a marketing communicator should most likely .

A) ensure that the encoding and decoding processes are different
B) encode and decode the message personally and frequently
C) understand the consumer's field of experience
D) foresee unplanned static or distortion
E) use familiar words and
symbols Answer: C
Skill: Concept
66) Marketing communicators must be good at messages that take into account how
the target audience them.
A) delivering; encodes
B) sending; encodes
C) encoding; decodes
D) retrieving; perceives
E) decoding; receives
Answer: C
Skill: Concept
67) Marketing communicators must know what and what .

A) products they wish to sell; audiences they want to target
B) distribution channel(s) they wish to use; timing they need
C) advertising media they will use; message they will send
D) audiences they wish to reach; responses they want
E) message they will send; feedback they
expect Answer: D
Skill: Concept
68) Which of the following is the first step in developing an effective

integrated communications and promotion program?
A) designing a message
B) identifying the target audience
C) determining the communication objectives
D) collecting feedback
E) choosing the media through which to send a
message Answer: B
Skill: Concept
Difficulty: Easy
69) While developing an effective integrated communication, once the target audience has
been defined, marketers must do all these steps EXCEPT .
A) determine the desired response
B) collect feedback
C) choose the media through which to send a message
D) identify potential distractions
E) design a
message Answer: D
Skill: Concept
70) Based on the target audience, the communicator makes decisions regarding what will
be said, who will say it, when it will be said, where it will be said, and .
A) whether it will be said
B) how it will be said
C) what noise to anticipate
D) how much it will cost to prepare the message
E) how frequently it will be said
Answer: B
Skill: Concept
71) In which step of the communication process does the marketing communicator need to
know the buyer-readiness stage of the target audience?
A) designing the message
B) choosing the media through which to send the message
C) determining communication objectives
D) collecting feedback
E) selecting the message source
Answer: C
Skill: Concept
72) The six stages consumers normally pass through on their way to making a purchase are
known as the stages.
A) personal-readiness
B) buyer-readiness
C) objective-readiness
D) market-readiness
E) supplier-
readiness Answer: B
Skill: Concept
Difficulty: Easy
73) Among the buyer-readiness stages, the first stage is .

A) preference
B) knowledge
C) liking
D) awareness
E) insistence
Answer: D
Skill: Concept
Difficulty: Easy
74) Boson Corp. is introducing consumers to its new car with the help of an advertisement
campaign. This introductory campaign most likely aims to affect the stage of buyer-
readiness.
A) liking
B) awareness
C) preference
D) insistence
E) conviction
Answer: B
Skill: Application
75) Which buyer-readiness stage are consumers in when they are feeling favorable about
the product?
A) preference
B) conviction
C) knowledge
D) purchasing
E) liking
Answer: E
Skill: Concept
Difficulty: Easy
76) Using the AIDA model, an effective marketing message should get attention, hold interest,
, and obtain action.
A) create differences
B) enhance doubts
C) double interest levels
D) arouse desire
E) minimize dismay
Answer: D
Skill: Concept
77) Which of the following statements is true about personal communication channels?
A) A magazine advertisement exemplifies the use of a personal communication channel.
B) All personal communication channels are directly controlled by a company.
C) Personal communication channels do not allow sending and receiving of feedback.
D) ord-of-mouth influence uses a personal communication channel.
E) A billboard message exemplifies the use of a personal communication
channel. Answer: D
Skill: Concept
78) A message showing a product's quality, economy, value, or performance is an example
of a(n) appeal.
A) structural
B) rational
C) emotional
D) moral
E) standard
Answer: B
Skill: Concept
Difficulty: Easy
79) An appeal that attempts to stir up either negative or positive sentiments that can
motivate purchase is called a(n) appeal.
A) rational
B) structural
C) emotional
D) moral
E) standard
Answer: C
Skill: Concept
Difficulty: Easy
80) involves cultivating opinion leaders and getting them to spread information about
a product or a service to others in their communities.
A) Sales promotion
B) Indirect marketing
C) Buzz marketing
D) Stealth marketing
E) Public
relations Answer:
C
Skill: Concept
Difficulty: Easy
81) Which of the following appeals is based on the idea that consumers often feel before they
think?
A) emotional appeal
B) rational appeal
C) structural appeal
D) standardized appeal
E) integrated appeal
Answer: A
Skill: Concept
Difficulty: Easy
82) Moral appeals .

A) relate to the audience's self-interest by showing that the product will produce the desired
benefits
B) attempt to stir up either negative or positive emotions that can motivate purchase
C) range from love, joy, and humor to fear and guilt
D) are directed to an audience's sense of what is "right" and "proper"
E) are based on the idea that practical benefits are more important for consumers than
emotions Answer: D
Skill: Concept
Difficulty: Easy
83) A charitable trust's appeal which states, "While you are trying to figure out what to get
the man who has everything, don't forget the man who has nothing" is an example of a(n)
appeal.
A) structural
B) awareness
C) rational
D) moral
E) standard
Answer: D
Skill: Application
84) Display media includes .
A) newspapers
B) magazines
C) television
D) company Web sites
E) billboards
Answer: E
Skill: Concept
85) One of the message structure issues that a marketer must handle is whether to .
A) present the strongest arguments first or last
B) make a moral appeal or not
C) use the pull strategy or push strategy
D) diversify vertically or horizontally
E) use mass marketing or niche
marketing Answer: A
Skill: Concept
86) A(n) argument is most likely to be effective when the audience is

highly educated or likely to hear opposing claims.
A) one-sided
B) two-sided
C) moral
D) emotional
E) structure
d Answer: B
Skill: Concept
87) Which of the following advertising slogans most likely represents a two-sided argument?
A) Breakfast of champions
B) Good to the last drop
C) A diamond is forever
D) The ultimate driving machine
E) The next big thing is already here
Answer: E
Skill: Application
88) A marketer making decisions about the headline, copy, illustration, and colors for a print
ad is determining the message .
A) structure
B) content
C) medium
D) channel
E) format
Answer: E
Skill: Concept
89) Which of the following terms best describes the channels through which two or more
people communicate directly with each other, including face-to-face, mail, e-mail, texting, or
an Internet chat?
A) shared communication channel
B) earned communication channel
C) personal communication channel
D) nonverbal communication channel
E) owned communication channel
Answer: C
Skill: Concept
Difficulty: Easy
90) Communication through a telephone call is considered a part of a(n)
communication channel.
A) online
B) nonverbal
C) personal
D) nonpersonal
E) unidirectional
Answer: C
Skill: Concept
91) Personal communications about a product between target buyers and neighbors,
friends, family members, associates, and other consumers, are known as .
A) personal selling
B) direct marketing
C) public relations
D) buzz marketing
E) word-of-mouth influence
Answer: E
Skill: Concept
Difficulty: Easy
92) A manufacturer of a variety of technological devices asked its marketing department to

develop inexpensive methods of building and maintaining brand awareness and excitement.
The marketing department then recruited consumers who were early adopters of technological
devices to spread the word about the company's new products. This is an example of .
A) a reverse marketing activity
B) nonpersonal marketing
C) sales promotion
D) buzz marketing
E) direct
marketing Answer:
D
Skill: Application
93) Nonpersonal communication channels include major media, , and events.
A) sales calls
B) atmospheres
C) buzz marketing
D) word-of-mouth influence
E) phone
calls Answer:
B
Skill: Concept
Difficulty: Easy
94) Many firms hire celebrities to appear in their advertisements. Which step of
the communication process is represented?
A) collecting feedback
B) designing a message
C) selecting the message source
D) determining the communication objectives
E) choosing the
media Answer: C
Skill: Concept
95) To , a marketer would most likely ask target audience members whether
they remember the message, how many times they saw it, and what points they remember.
A) select a message source
B) collect feedback
C) select a message channel
D) plan a media purchase
E) design a marketing appeal
Answer: B
Skill: Concept
John Mayes opened Sparkle Janitorial in 2005. John began his business by acquiring two
contracts for office cleaning services from two local manufacturing facilities. For two years,
John and his wife, Barb, performed the cleaning services alone. After acquiring three additional
cleaning contracts in 2007, John hired two employees. "Up to that point, we had room to grow
but we really had no advertising plan," John stated. "We were relying mostly on word-of-
mouth."
By 2010, Barb hired another two full-time employees to begin Sparkle's new endeavor: carpet
cleaning in homes and offices. "Competition was getting tough for both of our services at that
point," Barb added. "We ran a local radio spot three times each week. Then we had an
advertiser print coupons on placemats. That gave us a little more exposure."
John and Barb Mayes admit that they did not realize the value of a sound promotional plan
earlier. "We wish we would have put together something catchy with a jingle long before now,"
they said.
96) In a recent radio spot, John and Barb gave a quick explanation of Sparkle's cleaning process
and a description of the value consumers receive for their money. This is an example of a(n)
appeal.
A) emotional
B) standard
C) rational
D) moral
E) social
Answer: C
Skill: Application
97) John and Barb could have drawn attention to their services in several ways by using
effective integrated marketing communications. Which of the following is NOT a part of
an IMC strategy?
A) public relations
B) personal selling
C) direct marketing
D) strategic planning
E) sales
promotion
Answer: D
Skill: Application
98) The communications process should start with mass media advertising in order to reach a
large number of consumers.
Answer: FALSE
Skill: Concept
99) The four major communication functions are encoding, decoding, response, and noise.
Answer: FALSE
Skill: Concept
Difficulty: Easy
100) Encoding is the process by which the receiver assigns meaning to

symbols. Answer: FALSE
Skill: Concept
Difficulty: Easy
101) Decoding is the process by which a sender puts his or her thoughts into a symbolic
form. Answer: FALSE
Skill: Concept
Difficulty: Easy
102) A good marketing message will try to move consumers through several steps of the
buyer- readiness stages in a single message.
Answer: FALSE
Skill: Concept
Difficulty: Easy
103) Good marketing communications can speed the demise of a poor product.
Answer: TRUE
Skill: Concept
Difficulty: Easy
104) Rational appeals are often used to urge people to support social causes, such as a
cleaner environment or helping the disadvantaged.
Answer: FALSE
Skill: Concept
105) The "Stop. Think. Tylenol." ad slogan is an example of a moral

appeal. Answer: FALSE
Skill: Application
106) All personal communication channels are controlled directly by the

company. Answer: FALSE
Skill: Concept
107) Advertisements for prescription drugs often feature potential benefits and negative side
effects that consumers may experience with use of the medication. These ads present two-
sided arguments.
Answer: TRUE
Skill: Application
108) Buzz marketing involves cultivating opinion leaders and getting them to spread
information about a product or service to others in their communities.
Answer: TRUE
Skill: Concept
Difficulty: Easy
109) What are the four major communication functions?

Answer: The four major communication functions are encoding, decoding, response, and
feedback. Encoding is the process of putting thought into symbolic form. Decoding is the
process by which the receiver assigns meaning to the symbols encoded by the sender. In
addition, response refers to the reactions of the receiver after being exposed to the message.
Feedback is the part of the receiver's response communicated back to the sender.
Skill: Concept
110) Why is the consumer's field of experience important to a marketer?

Answer: The marketing communicator must understand the consumer's field of experience in
order to create promotional messages that will be decoded as the sender intends them to be
understood.
Skill: Concept
111) In the communication process, what is noise and what is its significance?
Answer: Noise is the unplanned static or distortion during the communication process, which
results in the receiver getting a different message than the one the sender sent. Due to the noise,
the consumer can get distracted and might miss the key point.
Skill: Concept
112) Describe the three types of appeals that marketers use.
Answer: Rational appeals relate to the consumer's self-interest; emotional appeals attempt to
stir up either positive or negative emotions; moral appeals are directed to the consumer's sense
of what is "right" and "proper."
Skill: Concept
113) What role does message format play in print advertisements?

Answer: In a print ad, for example, the headline, copy, illustrations, and color are critical. To
attract attention, the advertiser may use novelty, contrasts, or eye-catching headlines.
Skill: Concept
114) Why do marketers value opinion leaders?

Answer: Opinion leaders are people whose opinions are sought by others. Marketers rely on
opinion leaders to positively influence the spread of product or service acceptance through a
market.
Skill: Concept
115) Explain how the message source affects consumers' perceptions of the message.
Answer: The message source will affect how the consumer perceives the message. For
example, highly credible sources—such as certain newspapers or professionals such as doctors
and dentists—will be more persuasive. In some cases, the use of celebrity testimonials works
well to persuade consumers to make the purchase.
Skill: Concept
116) The background for the QuickRelief allergy medication ad appearing in the magazine
Better Homes and Gardens shows green grass and lovely flowers. The headline states
"QuickRelief is 54% more effective than the leading prescription." At the bottom of the ad, in
small print, is an explanation of how the effectiveness of QuickRelief was determined. The ad
also shows a package of QuickRelief so consumers can easily recognize it at the store. Identify
the different components of the communication model for this advertisement.
Answer: The marketers of QuickRelief are the sender. These marketers encoded their ideas into
the actual message, which includes the images and text of the advertisement. The medium for
this communication is the page in Better Homes and Gardens. The receiver is anyone reading
the magazine who sees this page of advertising; the receiver may or may not decode the
message in the way the marketers intended. Noise could pop up at any stage of the
communication process.
Skill: Application
117) Outline the steps in developing effective marketing communications.

Answer: In preparing marketing communications, the marketer's first task is to identify the
target audience and its characteristics. Next, the marketer has to determine the communication
objectives and define the response sought, whether it is awareness, knowledge, liking,
preference, conviction, or purchase. Then a message should be constructed with an effective
content and structure. Media must be selected, both for personal and nonpersonal
communication. The marketer should find highly credible sources to deliver messages. Finally,
the communicator must collect feedback by watching how much of the market becomes aware,
tries the product, and is satisfied in the process.
Skill: Concept
118) Describe the six buyer-readiness stages along with the marketing strategies used at
each stage.
Answer: The six buyer-readiness stages are awareness, knowledge, liking, preference,
conviction, and purchase. A marketer might use teaser ads to create interest, anticipation,
and curiosity at the awareness stage. Next, marketers want to inform potential buyers of the
product's high quality and its many features. Beyond knowledge, marketers want to move
consumers to have stronger feelings about the product, going from liking to preference to
conviction, or believing that a product is the best for them. A combination of promotion
tools can be used to create positive feelings and a customer connection with the brand. The
final stage is purchase, which marketers may influence through the use of premiums,
upgrades, or rebates.
Skill: Concept
119) While using the method for setting an advertising budget, a company starts with
total revenues, deducts operating expenses and capital outlays, and then devotes some portion
of the remaining funds to advertising.
A) integrated
B) moving-average
C) competitive-parity
D) percentage-of-sales
E) affordable
Answer: E
Skill: Concept
Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect
the design of the promotion mix.
Difficulty: Easy
120) Which of the following statements is true regarding the affordable method for setting
a promotion budget?
A) It is mostly used by large businesses.
B) It completely ignores the effects of promotion on sales.
C) It tends to place promotion first among spending priorities.
D) It leads to a certain annual promotion budget.
E) It almost always results in overspending.
Answer: B
Skill: Concept
121) Though the method of setting an advertising budget is simple to use and helps
management think about the relationships among promotion spending, selling price, and profit
per unit, it wrongly views sales as the cause of promotion rather than the result.
A) percentage-of-sales
B) integrated
C) competitive-parity
D) objective-and-task
E) regression
Answer: A
Skill: Concept
122) Which of the following methods is used by companies to set their advertising
budgets based on the industry average?
A) percentage-of-sales method
B) affordable method
C) competitive-parity method
D) objective-and-task method
E) regression
method Answer: C
Skill: Concept
Difficulty: Easy
123) Sam, the owner of a small company, learned that a competitor was planning to spend
$150,000 on promotion in the next financial year. As soon as he learned this, Sam called his
finance manager and said, "I want to spend $150,000 on promotion next year." In this case,
which method of promotional budgeting does Sam use?
A) the objective-and-task method
B) the competitive-parity method
C) the percentage-of-sales method
D) the affordable method
E) the pull-push
method Answer: B
Skill: Application
124) Which of the following statements is most likely true regarding the competitive-parity
method?
A) This method involves starting with total revenues, deducting operating expenses and
capital outlays, and then devoting some portion of the remaining funds to advertising.
B) It is based on the availability of funds rather than on opportunities.
C) It wrongly views sales as the cause of promotion rather than as the result.
D) In this method, promotion budgets are set to match competitors' outlays.
E) This method involves setting the promotion budget at a certain percentage of current or
forecasted sales.
Answer: D
Skill: Concept
125) Which of the following is the most logical budget-setting method?

B) affordable method
C) competitive-parity method
D) objective-and-task method
E) push
method
Answer: D
Skill: Concept
Difficulty: Easy
126) Which budgeting method entails defining specific promotion goals, determining the
necessary tasks, and estimating the costs to determine a promotion budget?
B) objective-and-task method
C) affordable method
D) exponential task method
E) competitive-parity
method Answer: B
Skill: Concept
Difficulty: Easy
127) Which of the following statements is most likely true regarding the objective-and-task
method of budget setting?
A) It forces management to spell out its assumptions about the relationship between the money
spent and promotion results.
B) It is the simplest and least time consuming method to use.
C) It is the least logical budget-setting method.
D) It involves setting the promotion budget to match competitors' outlays.
E) It wrongly views sales as the cause of promotion rather than as the result.
Answer: A
Skill: Concept
128) Using a(n) strategy, the producer directs its marketing activities toward
final consumers to induce them to buy the product.
A) pull
B) blitz
C) push
D) buzz
E) pulse
Answer: A
Skill: Concept
Difficulty: Easy
129) Which of the following is most likely a shortcoming of advertising?

A) It is the most expensive promotion tool.
B) It cannot reach masses of geographically dispersed buyers.
C) It is impersonal and lacks the direct persuasiveness of company salespeople.
D) It cannot trigger quick sales.
E) It cannot be used to build up a long-term image for a
product. Answer: C
Skill: Concept
130) Which of the following is a strength of advertising?
A) It is the most inexpensive promotion tool.
B) It reaches masses of geographically dispersed buyers at low cost per exposure
C) It is impersonal and lacks the direct persuasiveness of company salespeople.
D) It cannot trigger quick sales.
E) It cannot be used to build up a long-term image for a
product. Answer: B
Skill: Concept
131) In most cases, what is the most expensive promotion tool?

A) advertising
B) personal selling
C) mass media
D) public relations
E) publicity
Answer: B
Skill: Concept
Difficulty: Easy
132) Which of the following promotional tools is the most effective in building up
buyers' preferences, convictions, and actions?
A) mass-market advertising
B) sales promotion
C) segmented advertising
D) personal selling
E) public
relations Answer:
D
Skill: Concept
Difficulty: Easy
133) consists of strong short-term incentives that invite and reward quick responses
from customers.
A) Public relations
B) Personal selling
C) Advertising
D) Sales promotion
E) Direct
marketing Answer:
D
Skill: Concept
Difficulty: Easy
134) Suppose Amazon.com has offered you free shipping on your next purchase of more than
$35. This offer is an example of .
A) sales promotion
B) personal selling
C) a public relations strategy
D) horizontal diversification
E) a pull strategy
Answer: A
Skill: Application
135) is very believable because news stories, features, sponsorships, and events seem
more real and believable to readers than ads do.
A) Differentiated marketing
B) Public relations
C) Direct marketing
D) Sales promotion
E) Personal
selling Answer: B
Skill: Concept
Difficulty: Easy
136) A newspaper article announced that Connect Wireless, the sixth-largest wireless carrier in
a country, was changing its name to M-Mobile and that to begin the makeover process it had
replaced spokesperson Robert Garmon with Catherine Naylor. Which of the following
elements of a promotion mix is represented in this example?
A) sales promotion
B) advertising
C) public relations
D) personal selling
E) direct
marketing Answer:
C
Skill: Application
137) Which promotional tool is the most immediate, customized, and interactive?
A) segmented advertising
B) sales promotion
C) direct marketing
D) horizontal diversification
E) public
relations Answer:
C
Skill: Concept
Difficulty: Easy
138) Under which promotional mix strategy does the producer direct its marketing
activities toward channel members to induce them to carry the product and promote it to
final consumers?
A) pull strategy
B) blitz strategy
C) push strategy
D) buzz strategy
E) pulse strategy
Answer: C
Skill: Concept
Difficulty: Easy
139) The manufacturer of Crest toothpaste provides free samples of its toothpaste to dentists
and encourages them to distribute these samples to their patients and to inform the patients
about advantages of using Crest. The manufacturer of Crest toothpaste is using .
A) sales promotion
B) direct marketing
C) a push strategy
D) a pull strategy
E) a vertical diversification strategy
Answer: C
Skill: Application
140) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend
magazine advising consumers to request their auto body shops to use Glasis paint is an
example of how a company uses .
A) word-of-mouth influence
B) public relations
C) buzz marketing
D) a push strategy
E) a pull strategy
Answer: E
Skill: Application
141) Business-to-consumer companies are more likely to emphasize a promotion

strategy, while business-to-business companies are more likely to emphasize a
promotion strategy.
A) pull; push
B) push; pull
C) pulse; pull
D) blitz; pull
E) push; blitz
Answer: A
Skill: Concept
142) John Deere does very little promoting of its lawn mowers and garden tractors to final
consumers. Instead, John Deere's sales force works with Lowe's, Home Depot, independent
dealers, and other channel members, who in turn sell John Deere products to final consumers.
According to this information, which of the following promotion mix strategies is being used
by John Deere?
A) public relations strategy
B) direct marketing strategy
C) push strategy
D) blitz strategy
E) pull strategy
Answer: C
Skill: Concept
143) Which of the following would be classified as bait-and-switch advertising?

A) advertising a cheaper brand but making only a more expensive one available to customers
B) advertising the advantages of a product by comparing it to its competitors
C) providing free samples of a product
D) providing discount coupons with a product
E) favoring certain customers over others through trade
promotions Answer: A
Skill: Application
144) The FTC has adopted a three-day cooling-off rule to give special protection to .
A) customers who purchased because of deceptive advertising
B) customers who purchased because of bait-and-switch tactics
C) customers who were not seeking a product
D) resellers who do not receive proportionately equal treatment from manufacturers
E) resellers who are not covered by the Robinson-Patnam
Act Answer: C
Skill: Concept
145) Of the following actions, which is permitted in personal selling activities?
A) obtain or use trade secrets
B) criticize competitors by using inaccurate information
C) bribes to those who can influence a sale
D) offer incentives such as discounts based on size of an order
E) stretching the truth when describing advantages of a product
Answer: D
Skill: Concept
John Mayes opened Sparkle Janitorial in 2005. John began his business by acquiring two
contracts for office cleaning services from two local manufacturing facilities. For two years,
John and his wife, Barb, performed the cleaning services alone. After acquiring three additional
cleaning contracts in 2007, John hired two employees. "Up to that point, we had room to grow
but we really had no advertising plan," John stated. "We were relying mostly on word-of-
mouth."
By 2010, Barb hired another two full-time employees to begin Sparkle's new endeavor: carpet
cleaning in homes and offices. "Competition was getting tough for both of our services at that
point," Barb added. "We ran a local radio spot three times each week. Then we had an
advertiser print coupons on placemats. That gave us a little more exposure."
John and Barb Mayes admit that they did not realize the value of a sound promotional plan
earlier. "We wish we would have put together something catchy with a jingle long before now,"
they said.
146) When starting their business, John and Barb would most likely have benefitted from
understanding .
A) social media
B) buzz marketing
C) public relations campaigns
D) network television advertising
E) integrated marketing
communications Answer: E
Skill: Application
147) The affordable method of setting advertising budgets takes into consideration the
effects of promotion on sales.
Answer: FALSE
Skill: Concept
148) The affordable method of setting advertising budgets more frequently results
in overspending, rather than in underspending.
Answer: FALSE
Skill: Concept
149) The percentage-of-sales method wrongly views sales as the cause of promotion rather than
as the result.
Answer: TRUE
Skill: Concept
150) The percentage-of-sales budget is based on the availability of funds rather than on
opportunities.
Answer: TRUE
Skill: Concept
Difficulty: Easy
151) The affordable method involves setting promotion budgets to match competitors'
outlays. Answer: FALSE
Skill: Concept
152) Large-scale advertising conveys a positive message about the seller's size, popularity,
and success.
Answer: TRUE
Skill: Concept
Difficulty: Easy
153) If the pull strategy is effective, then consumers will demand the product from
channel members, who will in turn demand it from producers.
Answer: TRUE
Skill: Concept
154) Using a push strategy, the producer directs its marketing activities (primarily
advertising and consumer promotion) toward final consumers to induce them to buy the
product. Answer: FALSE
Skill: Concept
Difficulty: Easy
155) Integrating the promotion mix starts with

suppliers. Answer: FALSE
Skill: Concept
Difficulty: Easy
156) Because personal selling involves developing relationships, it is acceptable for salespeople
to stretch claims they make about a product's advantages.
Answer: FALSE
Skill: Concept
Difficulty: Easy
157) Discuss sales promotion.
Answer: Sales promotion includes a wide assortment of tools—coupons, contests, discounts,
premiums, and others—all of which have many unique qualities. They attract consumer
attention, offer strong incentives to purchase, and can be used to dramatize product offers and
boost sagging sales. Sales promotions invite and reward quick response. Whereas advertising
says, "Buy our product," sales promotion says, "Buy it now." Sales promotion effects are often
short-lived, however, and often are not as effective as advertising or personal selling in
building long-run brand preference and customer relationships.
Skill: Concept
158) Describe the significance of public relations as a promotion tool.

Answer: Public relations is very believable—news stories, features, sponsorships, and events
seem more real and believable to readers than ads do. PR can also reach many prospects who
avoid salespeople and advertisements—the message gets to buyers as "news" rather than as a
sales-directed communication. And, as with advertising, public relations can dramatize a
company or product. Marketers tend to underuse public relations or use it as an afterthought.
Yet a well-thought-out public relations campaign used with other promotion mix elements
can be very effective and economical.
Skill: Concept
159) Discuss direct marketing.

Answer: Although there are many forms of direct marketing—direct mail and catalogs, online
marketing, mobile marketing, social media and others—they all share four distinctive
characteristics. Direct marketing is less public: The message is normally directed to a specific
person. Direct marketing is immediate and customized: Messages can be prepared very quickly
and can be tailored to appeal to specific consumers. Finally, direct marketing is interactive: It
allows a dialogue between the marketing team and the consumer, and messages can be altered
depending on the consumer's response. Thus, direct marketing is well suited to highly targeted
marketing efforts and building one-to-one customer relationships.
Skill: Concept
160) When is it advisable to predominantly use sales promotions in a promotion mix?
Answer: Sales promotions are used to invite and reward quick response. Sales promotions are
short-lived; therefore, sales promotions are used when the marketer intends to make a quick,
dramatic impact on an intended audience with the use of coupons, samples, contest, etc.
Skill: Concept
161) Marketers can choose from two basic promotion mix strategies—push promotion or pull
promotion. Compare these two strategies.
Answer: Using the pull strategy, the producer directs its marketing activities toward final
consumers to induce them to buy the product; if the pull strategy is effective, consumers will
then demand the product from channel members, who will in turn demand it from producers.
Using a push strategy, the producer focuses instead on the channel members, persuading them
to carry the product and promote it to final consumers.
Skill: Concept
162) What is the FTC three-day cooling off rule? What purpose does the rule serve?
Answer: The three-day cooling-off rule gives special protection to customers who are not
seeking products. Under this rule, customers who agree in their own homes to buy something
costing more than $25 have 72 hours in which to cancel a contract or return merchandise and
get their money back, no questions asked.
Skill: Concept
163) Discuss the percentage-of-sales method used for setting the total budget for advertising.
Answer: The percentage-of-sales method involves setting the promotion budget at a certain
percentage of current or forecasted sales. The percentage-of-sales method is simple to use and
helps management think about the relationships between promotion spending, selling price, and
profit per unit. It wrongly views sales as the cause of promotion rather than as the result. Thus,
the percentage-of-sales budget is based on the availability of funds rather than on opportunities.
It may prevent the increased spending sometimes needed to turn around falling sales. Finally,
the method does not provide any basis for choosing a specific percentage, except what has been
done in the past or what competitors are doing.
Skill: Concept
164) Discuss the affordable method of setting the total budget for advertising.
Answer: Some companies use the affordable method: They set the promotion budget at the
level they think the company can afford. Small businesses often use this method, reasoning that
the company cannot spend more on advertising than it has. They start with total revenues,
deduct operating expenses and capital outlays, and then devote some portion of the remaining
funds to advertising.
Unfortunately, this method of setting budgets completely ignores the effects of promotion on
sales. It tends to place promotion last among spending priorities, even in situations in which
advertising is critical to the firm's success. It leads to an uncertain annual promotion budget,
which makes long-range market planning difficult. Although the affordable method can result
in overspending on advertising, it more often results in underspending.
Skill: Concept
165) What is personal selling? What are the advantages and disadvantages of a firm
using personal selling to promote a product or service?
Answer: Personal selling is the most effective tool at certain stages of the buying process,
particularly in building up buyers' preferences, convictions, and actions. It involves personal
interaction between two or more people, so each person can observe the other's needs and
characteristics and make quick adjustments. Personal selling also allows all kinds of customer
relationships to spring up, ranging from matter-of-fact selling relationships to personal
friendships. An effective salesperson keeps the customer's interests at heart to build a long-
term relationship by solving a customer's problems. Finally, with personal selling, the buyer
usually feels a greater need to listen and respond, even if the response is a polite "No thank-
you." These unique qualities come at a cost, however. A sales force requires a longer-term
commitment than does advertising—although advertising can be turned up or down, the size
of a sales force is harder to change. Personal selling is also the company's most expensive
promotion tool, costing companies on average $600 or more per sales call, depending on the
industry.
AACSB: Application of knowledge; Written and oral
communication Skill: Concept
166) Discuss the advantages and disadvantages of advertising.

Answer: Advertising can reach masses of geographically dispersed buyers at a low cost
per exposure, and it enables the seller to repeat a message many times. Beyond its reach,
large- scale advertising says something positive about the seller's size, popularity, and
success.
Because of advertising's public nature, consumers tend to view advertised products as more
legitimate. Advertising is also very expressive; it allows the company to dramatize its
products through the artful use of visuals, print, sound, and color.
Advertising also has some shortcomings. Although it reaches many people quickly,
advertising is impersonal and lacks the direct persuasiveness of company salespeople. For the
most part, advertising can carry on only a one-way communication with an audience, and the
audience does not feel that it has to pay attention or respond. In addition, advertising can be
very costly. AACSB: Application of knowledge; Written and oral communication
Skill: Concept

Chapter 15 Advertising and Public Relations
1) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an
identified sponsor is called .
A) sales promotion
B) direct marketing
C) advertising
D) personal selling
E) public
relations Answer:
C
Skill: Concept
Objective: LO 15.1: Define the role of advertising in the promotion mix.
Difficulty: Easy
2) Advertising is used mostly by .

A) governments
B) business firms
C) social agencies
D) independent professionals
E) not-for-profit
organizations Answer: B
Skill: Concept
Difficulty: Easy
3) Marketing management must make important decisions when developing an advertising

program. Which of the following is NOT one of those decisions?
A) evaluating advertising effectiveness
B) developing advertising strategy
C) setting advertising objectives
D) designing products and distribution
E) setting the advertising budget
Answer: D
Skill: Concept
Difficulty: Easy
4) Competitive parity and task methods are considered when making decisions about .
A) sales objectives
B) budget
C) message structure
D) media selection
E) message
effectiveness Answer: B
Skill: Concept
Difficulty: Easy
5) Advertising is the least used of the major promotion tools, although it has great potential for
building consumer awareness and reference.
Answer: FALSE
Skill: Concept
6) Advertising is a good way to engage, inform, and persuade, regardless of the objective of the
message.
Answer: TRUE
Skill: Concept
7) Marketing management must make four important decisions when developing an advertising
program. Briefly describe these four decisions.
Answer: Marketing management should first set advertising objectives, which can be classified
by primary purpose: to inform, persuade, or remind. Next, the advertising budget needs to be
determined, which will often depend on the product's stage in the product life cycle. The third
step is to develop an advertising strategy, which involves message decisions and media
decisions. The last step is to evaluate the effectiveness of the advertising campaign.
AACSB: Analytical thinking; Written and oral communications
Skill: Concept
8) The decisions about impact and engagement of an advertisement fall into the category of
decisions.
A) sales objectives
B) budget
C) message
D) media
E) advertising
evaluations Answer: D
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy
9) An advertising objective is classified by its primary purpose, which is to inform, persuade, or

.
A) reciprocate
B) compete
C) remind
D) explain
E) suggest
Answer: C
Skill: Concept
program.
Difficulty: Easy
10) Advertising objectives should be based on the marketing mix, positioning, and .
A) differentiation
B) past decisions about the target market
C) costs of different media choices
D) ability to create special events
E) novelty of the product advertised
Answer: B
Skill: Concept
program.
Difficulty: Easy
11) Advertising is a good way to , inform, and persuade.
A) educate
B) create
C) define
D) engage
E) harvest
Answer: D
Skill: Concept
program.
Difficulty: Easy
12) Which of the following is most likely an objective of informative advertising?

A) build brand preference
B) change customer perceptions of brand value
C) encourage customers to switch brands
D) suggest new uses for a product
E) keep the brand in customer minds during off-
seasons Answer: D
Skill: Concept
program.
13) When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how
the product cleans grime from walls without removing paint. What type of campaign was most
likely used by P&G for the Mr. Clean Magic Eraser?
A) informative advertising
B) persuasive advertising
C) reminder advertising
D) developmental advertising
E) comparative advertising
Answer: A
Skill: Application
program.
14) When the advertising objective is to build primary demand for a new product category,
advertising will most likely be used.
A) persuasive
B) informative
C) comparative
D) patronage
E) institutiona
l Answer: B
Skill: Concept
program.
Difficulty: Easy
15) Which of the following is an objective of persuasive advertising?

A) communicate customer value
B) correct false impressions
C) describe available services and support
D) keep the brand in a customer's mind during off-seasons
E) engage customers and create brand community
Answer: E
Skill: Concept
program.
16) becomes more important as competition increases. With this type of

advertising, a company's objective is to build selective demand.
A) Institutional advertising
B) Informative advertising
C) Reminder advertising
D) Not-for-profit advertising
E) Persuasive
advertising Answer: E
Skill: Concept
program.
Difficulty: Easy
17) Persuasive advertising becomes advertising when a company directly or
indirectly compares its brand with one or more other brands.
A) informative
B) reminder
C) attack
D) covert
E) institutiona
l Answer: C
Skill: Concept
program.
Difficulty: Easy
18) Comparative advertising is also known E) informat

as ive
A) attack Answer: A
B) institutional AACSB: Analytical
C) covert thinking Skill: Concept
D) reminder advertising.
program.
Difficulty: Easy
19) When Verizon Wireless began offering the iPhone, it used its "Can you hear me
now?" slogan to attack AT&T's rumored spotty service. This example best illustrates .
A) informative advertising
B) reminder advertising
C) comparative advertising
D) covert advertising
E) institutional advertising
Answer: C
Skill: Application
program.
20) Encouraging customers to switch brands is most likely the objective of
advertising.
A) informative
B) reminder
C) covert
D) persuasive
E) institutiona
l Answer: D
Skill: Concept
program.
21) Which of the following types of advertising will most likely result in an advertising war?
A) covert advertising
B) institutional advertising
C) informative advertising
D) comparative advertising
E) reminder advertising
Answer: D
Skill: Concept
program.
22) Describing available services and support is most likely a goal of advertising.
A) reminder
B) competitive
C) covert
D) attack
E) informativ
e Answer: E
Skill: Concept
program.
Difficulty: Easy
23) Keeping the brand in a customer's mind during off-seasons is most likely a goal of
advertising.
A) reminder
B) attack
C) informative
D) covert
E) competitive
Answer: A
Skill: Concept
program.
Difficulty: Easy
24) Which of the following is one of the primary goals of reminder advertising?
A) maintain customer relationships
B) build brand preference
C) correct false impressions
D) inform the market of a price change
E) restore company image
Answer: A
Skill: Concept
program.
25) A product in the maturity stage will most likely require advertising.
A) informative
B) comparative
C) persuasive
D) reminder
E) covert
Answer: D
Skill: Concept
program.
Difficulty: Easy
26) Advertising has numerous goals. Which of the following is NOT one of those goals?
A) to help move consumers through the buying process
B) to work with lobbyists and legislators in developing industry regulations
C) to move people to immediate action
D) to build or strengthen long-term customer relationships
E) to engage customers and change the way they think or feel about the brand
Answer: B
Skill: Concept
program.
27) After determining its advertising objectives, a company's next step in developing an
advertising program is to .
A) set an advertising budget
B) determine the media vehicle
C) use cash rebate offers
D) evaluate the advertising campaign
E) develop a message strategy
Answer: A
Skill: Concept
program.
Difficulty: Easy
28) Which of the following most likely requires the smallest advertising budget?
A) products in competitive markets
B) undifferentiated brands
C) new products
D) low-share brands
E) mature brands
Answer: E
Skill: Concept
program.
29) With the help of systems, consumers can avoid watching ads.
A) USB
B) CCTV
C) HDMI
D) DVR
E) XBMC
Answer: D
Skill: Concept
program.
30) Which of the following brands most likely requires heavy advertising in order to be set
apart from similar products?
A) undifferentiated brands
B) specialty brands
C) international brands
D) mature brands
E) high-share brands
Answer: A
Skill: Concept
program.
31) Brands in a market with many competitors and high advertising clutter must .
A) have very high prices compared to competitors
B) be advertised only through print and social media
C) be advertised more heavily to be noticed in the marketplace
D) never be advertised using informative advertising
E) be advertised only during the mature stage of the product life
cycle Answer: C
Skill: Concept
program.
32) Which of the following would be the most likely result of slashing ad spending for a
product?
A) increased popularity
B) reduced long-term market share
C) improved brand image
D) increased short-term sales
E) increased long-term market share
Answer: B
Skill: Concept
program.
33) When the product differs greatly from those of competitors, .

A) advertising can make customers aware of the product
B) firms should advertise similarly to competitors, to remind consumers of the product
C) advertising can point out the differences to consumers
D) firms should advertise little as the uniqueness will not require education of consumers
E) advertising can reaffirm a consumer's decision to
purchase Answer: C
Skill: Concept
program.
34) Which of the following is a major element of developing an advertising strategy?

A) selecting advertising media
B) using sophisticated statistical models
C) setting advertising objectives
D) evaluating advertising campaigns
E) setting the advertising budget
Answer: A
Skill: Concept
program.
Difficulty: Easy
35) Which of the following statements is true regarding the vital importance of the
media- planning function?
A) With changing technologies, media costs are declining.
B) Brand content is usually created in-house by the company.
C) Which media to use is sometimes more critical than the creative elements of the messaging.
D) Market targeting has declined in importance in the planning stages.
E) Because so many consumers use the same mobile and social media applications,
messaging can be less focused.
Answer: C
AACSB: Application of knowledge; Analytical thinking
Skill: Concept
program.
Difficulty: Easy
36) To break through the clutter, many marketers have subscribed to a new merging
of advertising and entertainment, dubbed .
A) Madison & Vine
B) Wall St. & Fifth Ave
C) buzz marketing
D) podcasting
E) webisodes
Answer: A
Skill: Concept
program.
Difficulty: Easy
37) The aim of is to make an advertisement so useful or entertaining that people want
to watch it.
A) branded entertainment
B) advertainment
C) viral marketing
D) buzz marketing
E) word-of-mouth advertising
Answer: B
Skill: Concept
program.
Difficulty: Easy
38) In addition to advertainment, advertisers are creating content that .
A) provides much more information than ads did in the past
B) they expect to go viral
C) helps the advertiser save money
D) looks less like ads and more like short films or shows
E) confuses viewers about whether they are ads
Answer: D
Skill: Concept
program.
39) Product placement in television programs and movies is an example of .

A) branded entertainment
B) advertainment
C) direct marketing
D) buzz marketing
E) sales
promotion
Answer: A
Skill: Concept
program.
40) Pepsi being prominently featured on episodes of Empire is an example of .

A) advertainment
B) buzz marketing
C) personal selling
D) sales promotion
E) product
placement Answer: E
Skill: Application
program.
41) Which term refers to the general idea that will be communicated to consumers through an
advertisement?
A) advertising appeal
B) message strategy
C) consumer-generated message
D) creative concept
E) message
execution Answer: B
Skill: Concept
program.
Difficulty: Easy
42) The first step in creating effective advertising messages is .

A) selecting specific media vehicles
B) planning a message strategy
C) determining return on advertising investment
D) choosing media timing
E) executing the message
Answer: B
Skill: Concept
program.
Difficulty: Easy
43) Developing an effective message strategy begins with identifying that can be
used as advertising appeals.
A) consumer trends
B) competitors' weaknesses
C) competitors' strengths
D) customer benefits
E) consumer
emotions Answer: D
Skill: Concept
program.
Difficulty: Easy
44) tend to be straightforward outlines of benefits and positioning points that the
advertiser wants to stress.
A) Promotion mix plans
B) Message strategy statements
C) Creative concept strategies
D) Advertainment statements
E) Branded entertainment plans
Answer: B
Skill: Concept
program.
Difficulty: Easy
45) After creating a message strategy statement, the advertiser must develop a compelling
that will bring the message strategy to life in a distinctive and memorable way.
A) creative concept
B) customer strategy
C) customer benefit
D) execution style
E) media
vehicle Answer:
A
Skill: Concept
program.
Difficulty: Easy
46) Which of the following are the three characteristics that an advertising appeal should have?
A) engaging, informative, and stylish
B) trendy, compelling, and appealing
C) meaningful, believable, and distinctive
D) unique, emotional, and entertaining
E) humorous, memorable, and
interesting Answer: C
Skill: Concept
program.
Difficulty: Easy
47) In its advertisements, Timex promotes its affordable and sturdy watches. Fossil
emphasizes style and fashion in its advertisements, and Rolex stresses luxury and status. These
are all examples of appeals.
A) rational
B) reminder
C) believable
D) entertainment
E) distinctiv
e Answer: E
Skill: Application
program.
48) The advertiser must find the best approach, style, words, format, and for
executing the message.
A) media
B) cost
C) visuals
D) tone
E) endorser
Answer: D
Skill: Concept
program.
Difficulty: Easy
49) Which message execution style depicts average people using a product in an everyday
setting?
A) lifestyle
B) scientific evidence
C) slice of life
D) personality symbol
E) testimonial evidence
Answer: C
Skill: Concept
program.
Difficulty: Easy
50) An ad for a new convection oven shows a busy professional woman using the
convection oven to cook dinner for her family. Which of the following message execution
styles is illustrated in this example?
A) testimonial evidence
B) slice of life
C) fantasy
D) scientific evidence
E) mood or
image Answer: B
Skill: Application
program.
51) An ad for Athleta active wear shows a woman in a complex yoga pose and states: "If
your body is your temple, build it one piece at a time." This ad uses the execution style.
A) slice of life
B) lifestyle
C) fantasy
D) scientific evidence
E) personality
symbol Answer: B
Skill: Application
program.
52) Which of the following message execution styles focuses on the company's skill
and knowledge in making the product?
A) endorsement
B) scientific evidence
C) slice of life
D) technical expertise
Answer: D
Skill: Concept
program.
Difficulty: Easy
53) A pharmaceutical ad features a world-renowned heart surgeon describing the benefits of
a medication. Which of the following message execution styles is illustrated in this example?
A) mood or image
B) fantasy
C) personality symbol
D) musical
Answer: E
Skill: Application
program.
54) An IKEA ad shows consumers creating fanciful room designs with IKEA furniture, such
as "a bedroom for a queen made by Bree and her sister, designed by IKEA." Which of the
following message execution styles is illustrated in this example?
A) mood or image
B) musical
C) fantasy
D) lifestyle
E) personality
symbol Answer: C
Skill: Concept
program.
Difficulty: Easy
55) Apple used an album by the band U2 to promote the Apple Watch announcement. Which
of the following message execution styles is illustrated in this example?
A) personality symbol
B) musical
C) fantasy
D) lifestyle
E) slice of
life Answer:
B
Skill: Application
program.
56) The advertisements that use the Aflac duck or the GEICO gecko are using the
message execution style of .
A) lifestyle
B) technical expertise
C) testimonial evidence
D) slice of life
E) personality
symbols Answer: E
Skill: Application
program.
57) Progressive Insurance uses Flo to represent its product. Which of the following
message execution styles was used by Progressive Insurance?
A) mood or image
B) fantasy
E) musical
Answer: C
Skill: Application
program.
58) Which message execution style involves presenting survey data indicating that a brand is
better than other brands?
A) scientific evidence
B) testimonial evidence
C) endorsement
E) slice of
life Answer:
A
Skill: Concept
program.
Difficulty: Easy
59) Which of the following message execution styles features a highly believable or likable
source endorsing the product?
A) musical
B) mood or image
C) testimonial evidence
D) lifestyle
E) slice of
life Answer:
C
Skill: Concept
program.
Difficulty: Easy
60) Maybelline used Gigi Hadid, a model, to endorse a new range of cosmetics. This
message execution style is referred to as .
A) lifestyle
C) image
E) personality
symbol Answer: B
Skill: Application
program.
61) The McDonald's fast-food restaurant chain uses Ronald McDonald, a clown, as its
primary character. Which message execution style is used by McDonald's?
A) technical expertise
B) lifestyle
D) image
E) slice of
life Answer:
C
Skill: Application
program.
62) An illustration, a headline, and a copy are the three elements of an advertisement.
A) tone
B) mood
C) format
D) reach
E) frequency
Answer: C
Skill: Concept
program.
Difficulty: Easy
63) What is the first element that a reader most likely notices in a print ad?
A) copy
B) illustration
C) headline
D) slogan
E) tone
Answer: B
Skill: Concept
program.
Difficulty: Easy
64) The main block of text in a print ad is referred to as the .

A) copy
C) headline
D) slogan
E) message strategy
statement Answer: A
Skill: Concept
program.
Difficulty: Easy
65) Which of the following is illustrated by an amateur 30-second video, developed by a
consumer, telling the story of the online crafts marketplace, Etsy.com?
A) personal selling
B) consumer-generated messages
C) consumer ethnocentrism
D) sales promotion
E) consumeris
m Answer: B
Skill: Concept
program.
66) Television, as a medium of advertisement, is characterized by .

A) high audience selectivity
B) low absolute costs
C) poor mass-marketing coverage
D) fleeting exposure
E) high cost per exposure
Answer: D
Skill: Concept
program.
67) What is an advantage of consumer-generated content?

A) It will be less expensive.
B) It cannot be controlled by the company.
C) It can provide new creative ideas.
D) It can entice customers to become brand evangelists.
E) It can use social media sites more effectively than the company
can. Answer: C
Skill: Concept
program.
68) Which of the following is a major step in selecting advertising media?
A) determining reach, frequency, and impact
B) selecting message execution style
C) developing a compelling creative concept
D) deciding on format elements
E) planning a message strategy
Answer: A
Skill: Concept
program.
69) is a measure of the percentage of people in a target market who are exposed to an
ad campaign during a given period of time.
A) Frequency
B) Qualitative value
C) Impact
D) Premium
E) Reach
Answer: E
Skill: Concept
program.
Difficulty: Easy
70) Which of the following is an advantage of using newspapers as an advertising medium?

A) long life
B) good reproduction quality
C) large pass-along audience
D) broad acceptability
E) no ad competition within the same
medium Answer: D
Skill: Concept
program.
71) You receive a report that 68 percent of your target market has been exposed to your ad
campaign during a given period of time. Which of the following aspects of media selection
is represented by this information?
A) frequency
B) reach
C) impact
D) engagement
E) qualitative value
Answer: B
Skill: Application
program.
72) Which of the following statements about magazines as an advertising medium is true?
A) Magazines have long ad purchase lead times.
B) Magazines cannot offer high geographic selectivity.
C) Magazines lack credibility.
D) Magazines provide better local coverage than newspapers.
E) Magazines have poor reproduction of images.
Answer: A
Skill: Concept
program.
73) The number of times an average person in the target market is exposed to a message
is known as the of the message.
A) quantitative value
B) reach
C) frequency
D) exposure rate
E) turnover rate
Answer: C
Skill: Concept
program.
Difficulty: Easy
74) Which of the following is a disadvantage of using direct mail as an advertising medium?
A) low audience selectivity
B) no flexibility
C) severe ad competition
D) relatively high cost per exposure
E) lack of
personalization Answer:
D
Skill: Concept
program.
75) Which term refers to the qualitative value of message exposure through a given medium?
A) reach
B) turnover rate
C) efficiency
D) media impact
E) frequency
Answer: D
Skill: Concept
program.
Difficulty: Easy
76) Which of the following is a media measure?

A) consumer price index
B) GDP per capita
C) wholesale price index
D) click-through rate
E) human development index
Answer: D
Skill: Concept
program.
Difficulty: Easy
77) Which of the following statements is most likely true about radio as an advertising medium?
A) Radio advertising is typically quite expensive.
B) Radio ensures good attention from the target audience.
C) Radio offers very low audience selectivity.
D) Radio prohibits the use of segmentation strategies.
E) Radio advertising is characterized by good local acceptance.
Answer: E
Skill: Concept
program.
78) Which of the following is a digital medium that is used by advertisers to reach
consumers directly?
A) smartphone
B) direct mail
C) newspapers
D) billboards
E) televisio
n Answer:
A
Skill: Concept
program.
Difficulty: Easy
79) Which of the following statements about outdoor media is true?

A) It has no creative limitations.
B) It is characterized by higher costs per exposure.
C) It has good positional selectivity.
D) It has very limited flexibility.
E) It has high audience
selectivity. Answer: C
Skill: Concept
program.
80) You want to advertise your new product. You want good mass marketing coverage and
low cost per exposure. You also want to combine sight, sound, and motion and make the
advertisement appealing to the senses. You should choose as your advertising media.
A) newspaper
B) radio
C) magazines
D) television
E) direct mail
Answer: D
Skill: Application
program.
81) Snappy Cameras is launching a new advertising campaign to demonstrate the high quality
of its digital cameras. Which media option would give the audience the most control over
exposure to the ads and interactive capabilities?
A) the Internet
B) newspaper
C) TV
D) radio
E) billboard
Answer: A
Skill: Application
program.
82) Rather than measuring click-through rates, companies now want to track as a
more accurate measure of the engagement of the consumers in the message.
A) ratings
B) consumer expressions
C) listenership
D) consumer impressions
E) readership
Answer: B
Skill: Concept
program.
83) While traditional mass media still make up a majority of today's media mixes,
companies have added digital, mobile, and social media that cost less, target more
effectively, and
.
A) are quicker to create
B) involve more departments in the company
C) must be chosen carefully, since there are so many options
D) engage consumers more fully
E) are challenging to schedule
Answer: D
Skill: Application
program.
84) Finding ads on shopping carts, ATMs, transit buses, and even municipal garbage cans is
known as .
A) paid media
B) earned media
C) shared media
D) media multitasking
E) alternative media
Answer: E
Skill: Application
program.
85) A Spanish-language channel runs its ads only in Hispanic neighborhoods. This is
an example of .
A) broadcasting
B) buzz marketing
C) narrow programming
D) media multitasking
E) personal selling
Answer: C
Skill: Application
program.
86) The term media multitaskers refers to .
A) competing brands which use the same media vehicle
B) people who absorb more than one medium at a time
C) media planners who also head the creative department
D) media planners who use more than one advertising medium
E) ad agencies whose clients are competitors of each other
Answer: B
Skill: Concept
program.
87) Modern Family and The Wall Street Journal are both examples of —
specific media within each general media type.
A) alternative media
B) major media
C) media vehicles
D) media multitaskers
E) micromedi
a Answer: C
Skill: Concept
program.
Difficulty: Easy
88) When selecting a media vehicle, the media planner looks both at the total cost of using a
medium and at the .
A) cost per thousand persons reached
B) cost of premium offers
C) cost of the magazine it is using
D) profit margin
E) continuity cost
Answer: A
Skill: Concept
program.
Difficulty: Easy
89) When a media planner determines whether an advertisement for diapers should be placed in
Parents magazine or Sports Illustrated magazine, the planner is evaluating the media vehicle's
.
A) profit margin
B) flexibility
C) rate of depreciation
D) audience quality
E) cost per exposure
Answer: D
Skill: Concept
program.
Difficulty: Easy
90) Audience quality, audience engagement, and editorial quality are most likely to
be considered when a media planner .
A) decides on media timing
B) selects an execution style
C) selects a media vehicle
D) evaluates return on investment
E) measures the communication effects of an
advertisement Answer: C
Skill: Concept
program.
Difficulty: Easy
91) In the context of media timing, means making decisions on scheduling ads either
following the seasonal pattern, opposing the seasonal pattern, or being the same all year.
A) routing
B) continuity
C) sequencing
D) narrowcasting
E) seasonal
advertising Answer: E
Skill: Application
program.
92) To measure the effects of an ad after it has aired, the advertiser can evaluate how
the ad affected consumer recall, product awareness, attitude changes, and preference.
A) sales
B) profit
C) communication
D) continuity
E) associativity
Answer: C
Skill: Concept
program.
Difficulty: Easy
93) Which of the following characterizes standardized global advertising?

A) higher advertising costs
B) no global advertising coordination
C) higher appeal to varying demographics
D) a more consistent worldwide image
E) lower reach
Answer: D
Skill: Concept
program.
Most clients of Second Avenue have learned about the store through word-of-mouth
communication. This small retailer of quality secondhand children's clothing thrives on the sale
of a vast inventory of children's clothing placed on consignment. "Because small children grow
so quickly," Second Avenue's owner commented, "they often outgrow many of their clothes
before they've hardly been worn!"
Second Avenue provides a way for people to sell their children's clothing, earn a few
dollars, and buy the next larger size. "We're extremely picky about the condition of the
clothing we stock," the owner stated, "but we sell most items at a 60-percent discount."
94) Which of the following media options would be the LEAST costly for Second
Avenue's promotional efforts?
A) periodic advertising in a local newspaper that follows a regular monthly schedule
B) daily advertisements on a cable television station
C) daily commercials during the local evening news
D) a billboard placed on the nearest interstate highway
E) a billboard placed in a
supercenter Answer: A
Skill: Application
program.
95) Second Avenue has just developed a 30-second television ad that features three different
shoppers enthusiastically shopping in the store and appreciating its products. This ad uses
the
execution style.
A) slice of life
B) technical expertise
D) fantasy
E) image
Answer: A
Skill: Application
program.
96) A specific communication task to be accomplished with a specific target audience during
a specific period of time is called an advertising objective.
Answer: TRUE
Skill: Concept
program.
97) Informative ads are used primarily in the growth stage of the product life
cycle. Answer: FALSE
Skill: Concept
program.
98) The most important objective of reminder advertising is telling the market about a new
product.
Answer: FALSE
Skill: Concept
program.
99) Persuasive advertising aims to build broad demand.

Answer: FALSE
Skill: Concept
program.
100) While cuts in advertising may appear to do little short-term harm to sales, reducing ad
spending may cause long-term damage to a brand's image and market share.
Answer: TRUE
Skill: Concept
program.
Difficulty: Easy
101) The aim of advertainment is to make ads so entertaining or useful that people want to
watch them.
Answer: TRUE
Skill: Concept
program.
Difficulty: Easy
102) The most common form of advertainment is product

placement. Answer: FALSE
Skill: Concept
program.
Difficulty: Easy
103) A brief glimpse of the latest LG phone on the television series Modern Family is
an example of an advertainment.
Answer: FALSE
Skill: Application
program.
104) Branded entertainment involves making the brand an inseparable part of some other form
of entertainment.
Answer: TRUE
Skill: Concept
program.
Difficulty: Easy
105) Professional athletes such as Peyton Manning and Maria Sharapova are featured in
advertisements for Gatorade. According to this information, Gatorade is utilizing
branded entertainment.
Answer: FALSE
Skill: Application
program.
106) The purpose of advertising is to get consumers to think about or react to the product or
company in a certain way.
Answer: TRUE
Skill: Concept
program.
Difficulty: Easy
107) The message execution style of personality symbol involves identifying and
presenting ordinary people saying how much they like a product.
Answer: FALSE
Skill: Concept
program.
Difficulty: Easy
108) Although television advertising has high absolute costs, its cost per exposure is
relatively low.
Answer: TRUE
Skill: Concept
program.
109) In an endorsement style of execution, the endorsers can be characters that represent the
product.
Answer: FALSE
Skill: Concept
program.
Difficulty: Easy
110) The direct mail medium has very low cost per exposure.
Answer: FALSE
Skill: Concept
program.
Difficulty: Easy
111) Reach is a measure of how many times the average person in the target market is
exposed to the message.
Answer: FALSE
Skill: Concept
program.
Difficulty: Easy
112) While advertisers can accurately measure the communications effects of their
ads, measuring sales and profit effects are more difficult.
Answer: TRUE
Skill: Concept
program.
Difficulty: Easy
113) The communication effects of advertisements and ad campaigns are more difficult
to measure than the sales and profit effects.
Answer: FALSE
Skill: Concept
program.
Difficulty: Easy
114) Agencies bring an outside point of view to solving a company's problems, along with lots
of experience from working with different clients and situations.
Answer: TRUE
Skill: Concept
program.
115) Recently, the increased use of online social networks and video sharing has reduced
the need for advertising standardization with global brands.
Answer: FALSE
Skill: Concept
program.
116) Standardization of advertising leads to lower advertising costs, greater global
advertising coordination, and a more consistent worldwide image.
Answer: TRUE
Skill: Concept
program.
117) Advertising media costs and availability differ vastly from country to
country. Answer: TRUE
Skill: Concept
program.
118) What is an advertising objective? What are the three primary types of
advertising objectives?
Answer: An advertising objective is a specific communication task to be accomplished with a
specific target audience during a specific period of time. Advertising objectives can be
classified by primary purpose—whether the aim is to inform, persuade, or remind.
Skill: Concept
program.
Difficulty: Easy
119) Describe the main objectives of informative

advertising. Answer: The main objectives of informative
advertising are:
-Communicating customer value
-Building a brand and company image
-Telling the market about a new product
-Explaining how a product works
-Suggesting new uses for a product
-Informing the market of a price change
-Describing available services and support
-Correcting false impressions
Skill: Concept
program.
Difficulty: Easy
120) Describe the three characteristics that advertising appeals should have?
Answer: Advertising appeals should be meaningful, believable, and distinctive. Meaningful
appeals point out benefits that make the product more desirable or interesting to consumers.
Believable appeals lead consumers to believe that the product or service will deliver the
promised benefits. Finally, distinctive appeals should tell how the product is better than the
competing brands.
Skill: Concept
program.
121) When would a marketer most likely use a comparative ad?

Answer: Comparative ads are a type of persuasive ad in which a company directly or indirectly
compares its brand with one or more other brands. This type of ad is used as competition
increases within a category.
Skill: Concept
program.
122) Describe the main objectives of reminder advertising.

Answer: The main objectives of reminder advertising are:
-Maintaining customer relationships
-Reminding consumers that the product may be needed in the near future
-Reminding consumers where to buy the product
-Keeping the brand in a customer's mind during off-seasons
Skill: Concept
program.
123) How has clutter in television and other advertising media created an increasingly hostile
advertising environment?
Answer: The majority of Americans believe there are too many television commercials, and
they are faced with almost 20 minutes of commercials for each hour of prime-time television;
viewers are increasingly using technologies to skip past commercials.
Skill: Concept
program.
124) Discuss the concepts of advertainment and branded entertainment.
Answer: This merging of advertising and entertainment takes one of two forms: advertainment
or branded entertainment. The aim of advertainment is to make ads themselves so entertaining,
or so useful, that people want to watch them.
Branded entertainment (or brand integrations) involves making the brand an inseparable part of
some other form of entertainment. The most common form of branded entertainment is product
placements—embedding brands as props within other programming.
Skill: Concept
program.
125) Give an example of a slice-of-life message execution style.

Answer: Student answers will vary. Slice-of-life examples show one or more typical people
using a product in a normal setting. A McDonald's ad featuring a family eating burgers and fries
on a family outing is a slice-of-life message execution.
Skill: Application
program.
126) How does a personality symbol impact a brand?

Answer: A personality symbol is a character that represents the product and with whom the
consumer can relate; the personality symbol helps a consumer connect with the product.
Skill: Concept
program.
127) Give an example of testimonial evidence and explain the importance of the source.
Answer: Students answers will vary. Testimonial evidence features a highly believable or
likable source endorsing the product. Nike uses Maria Sharapova to endorse its sports
equipment and apparel.
Skill: Application
program.
128) Why is reach an important measure for a marketer?
Answer: Reach is a measurement of the percentage of people in the target market who are
exposed to the ad campaign during a given period of time.
Skill: Concept
program.
129) Explain why an ad might need to be modified from one country to the next.
Answer: Differences in culture, demographics, and economic conditions will impact how
effective or acceptable an advertisement will be in other countries. In addition, changes in the
use of language and imagery may be required to be appropriate to the foreign culture. Also,
countries have varying laws regulating advertising.
AACSB: Application of knowledge; Diverse and multicultural work environments
Skill: Concept
program.
Difficulty: Easy
130) Describe any three message execution styles.

Answer: Students' answers may include any three of the following.
There are nine message execution styles. They are:
-Slice of life: shows one or more typical people using the product in a normal setting.
-Lifestyle: shows how a product fits in with a particular lifestyle.
-Fantasy: creates a fantasy around the product or its use.
-Mood or image: builds a mood or image around the product or service.
-Musical: shows people or cartoon characters singing about the product.
-Personality symbol: creates a character to represent the product.
-Technical expertise: depicts the company's expertise in making the product or delivering the
service.
-Scientific evidence: presents survey or scientific evidence that the brand is better than other
brands.
-Testimonial evidence/endorsement: features a highly believable or likable source endorsing the
product.
Skill: Concept
program.
131) How are companies taking advantage of interactive technologies to tap consumers for
message ideas and actual ads? What are the benefits and disadvantages of consumer-
generated advertising?
Answer: Companies can now search existing video sites such as YouTube, set up their own
Web sites, create accounts on social networks such as Facebook, and sponsor ad-creation
contests. Several companies, such as Coca-Cola, MasterCard, and Frito-Lay, have used
consumer-generated ads in national promotions. Consumer-generated advertising offers
companies a way to gather new perspectives on their products and develop insights into how
their products are used and seen by actual consumers. Also, consumer-generated advertising
is very inexpensive. On the other hand, companies do not control consumer-generated
material, which can lead to conflicting, or even negative, messages about a brand.
AACSB: Application of knowledge; Information technology
Skill: Concept
program.
132) Describe the four major steps in media selection.

Answer: First, the advertiser needs to decide on reach, frequency, and impact. Reach is a
measure of the percentage of people who are exposed to the advertisement; frequency is the
measure of how many times the average person is exposed to the message; impact is how
people feel about the advertisement. Next, media planners need to choose among major media
types: television, newspapers, magazines, direct mail, radio, outdoor, and Internet. They may
also select newer digital media such as cell phones. After the media type is selected, the
specific media vehicles must be identified. The last decision is media timing, which involves
determining how to schedule the advertising over the course of a year.
Skill: Concept
program.
133) List any four major media types and identify some of the strengths and weaknesses of
each of them.
Answer: Students' answers may include any four of the following.
-Television: Advantages are good mass marketing coverage, low cost per exposure, and appeals
to the senses; weaknesses are high total costs and high clutter.
-Newspapers: Strengths are timeliness, good local market coverage, and high believability;
weaknesses are short life and poor reproduction quality.
-Direct mail: Strengths are flexibility and capacity for personalization; weaknesses are relatively
high cost per exposure and "junk mail" image.
-Magazines: Strengths are high audience selectivity, credibility, and good pass-along readership;
weaknesses are high costs and long lead times.
-Radio: Strengths are good local acceptance and low cost; weaknesses are low attention and
fleeting exposure to messages.
-Outdoor: Strengths are flexibility, low cost, and low message competition; weaknesses are low
audience selectivity and creative limitations.
-Internet: Strengths include high selectivity, low cost, and interactive capabilities; weaknesses
are audience control of exposure and potentially low impact.
Skill: Concept
program.
134) Advertisers should regularly evaluate two types of advertising results: the
communication effects and the sales and profit effects. How are these two results measured?
Answer: Measuring the communication effects of an ad or ad campaign tells whether the ads
and media are communicating the ad message well. Individual ads can be tested before or after
they are run. Before an ad is placed, the advertiser can show it to consumers, ask how they like
it, and measure message recall or attitude changes resulting from it. After an ad is run, the
advertiser can measure how the ad affected consumer recall or product awareness, knowledge,
and preference. Pre- and post-evaluations of communication effects can be made for entire
advertising campaigns as well. Sales and profit effects of advertising are often much harder to
measure. Sales and profits are affected by many factors other than advertising—such as product
features, price, and availability. One way to measure the sales and profit effects of advertising
is to compare past sales and profits with past advertising expenditures. Another way is through
experiments. For example, to test the effects of different advertising spending levels, a
company could vary the amount it spends on advertising in different market areas and measure
the differences in the resulting sales and profit levels. More complex experiments could be
designed to include other variables, such as differences in the ads or media used.
Skill: Concept
program.
135) Explain how seasonality impacts media timing.
Answer: An advertiser must decide how to schedule the advertising over the course of a year.
Suppose sales of a product peak in December and drop in March (for winter outdoor gear, for
instance). The firm can vary its advertising to follow the seasonal pattern, oppose the seasonal
pattern, or be the same all year. Most firms do some seasonal advertising. For example, Mars
currently runs M&M's special ads for almost every holiday and "season," from Easter, Fourth
of July, and Halloween to the Super Bowl season and the Oscar season. The Picture People,
the national chain of portrait studios, advertises more heavily before major holidays, such as
Christmas, Easter, Valentine's Day, and Halloween. Some marketers do only seasonal
advertising: for instance, P&G advertises its Vicks NyQuil only during the cold and flu season.
Skill: Concept
program.
136) Discuss the advantages of using the services of an advertising agency.

Answer: Today's agencies employ specialists who can often perform advertising tasks better
than the company's own staff can. Agencies also bring an outside point of view to solving the
company's problems, along with lots of experience from working with different clients and
situations. So, today, even companies with strong advertising departments of their own use
advertising agencies. Most large advertising agencies have the staff and resources to handle all
phases of an advertising campaign for their clients, from creating a marketing plan to
developing ad campaigns and preparing, placing, and evaluating ads and other brand content.
Skill: Concept
program.
Difficulty: Easy
137) Which of the following promotion tools involves building up a positive corporate image
and handling unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct marketing
D) public relations
E) advertising
Answer: D
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Easy
138) Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly
contacts members of the local and statewide media with information about community events
and charity fundraisers sponsored by her company. This is an example of the
function of public relations.
A) press relations
B) product publicity
C) investor relations
D) lobbying
E) development
Answer: A
Skill: Application
139) One of the functions performed by a PR department is , which involves building

and maintaining relations with legislators and government officials to influence legislation and
regulation.
A) direct marketing
B) press relations management
C) investor relations management
D) lobbying
E) public affairs
management Answer: D
Skill: Concept
Difficulty: Easy
140) One of the functions performed by a PR department is , which involves working

with donors or members of nonprofit organizations to gain financial or volunteer support.
A) direct marketing
D) development
E) lobbyin
g Answer:
D
Skill: Concept
Difficulty: Easy
141) The National Pork Board developed "Pork. The Other White Meat" campaign. The
campaign provided nutritional information and pork recipes in an attempt to encourage people
to view pork as a tasty alternative to poultry and fish. Which of the following functions was
the goal of this public relations campaign?
A) influencing government regulations on pork
B) gaining financial support for pork producers
C) creating newsworthy information about pork
D) maintaining relationships with pork producers
E) rebuilding consumer interest in pork
Answer: E
Skill: Application
142) Which of the following public relations functions involves maintaining relationships with
shareholders and those in the financial community?
A) direct marketing
D) development
E) lobbyin
g Answer:
C
Skill: Concept
Difficulty: Easy
143) Which of the following statements is most likely true of public relations?
A) It requires participating companies to pay for media space or time.
B) It can have the same impact on public awareness as advertising at much lower costs.
C) It is always handled by a third-party agency hired by the firm.
D) It forms a huge portion of the overall marketing budget of most large firms.
E) It plays an insignificant role in brand building with the increasing popularity of
advertising. Answer: B
Skill: Concept
144) How can public relations have a strong impact at a much lower cost than advertising?
A) The firm can pay for content to be spread.
B) Interested consumers can create the content on their own and spread it.
C) Interesting brand stories, events, videos, or other content can be shared by sources out of the
company's control, but to its benefit.
D) Advertising agencies can minimize the impact of competitors' news.
E) Advertising costs have changed dramatically due to changing technologies.
Answer: C
Skill: Concept
145) Which of the following is NOT one of the publics to which a public relations
department must answer?
A) stockholders
B) legislators
C) the press
D) employees
E) supplier
s Answer:
E
Skill: Concept
146) Which of the following best explains why public relations is often overlooked as a tool for
supporting product marketing objectives?
A) Public relations departments are typically large divisions within corporations.
B) The time and costs associated with public relations prohibit its extensive use.
C) Public relations specialists lack the skills necessary to work with marketing experts.
D) Many public relations professionals see their jobs as communicating, not brand building.
E) The public relations department handles stockholders and legislators but not
employees. Answer: D
Skill: Concept
Most clients of Second Avenue have learned about the store through word-of-mouth
communication. This small retailer of quality secondhand children's clothing thrives on the sale
of a vast inventory of children's clothing placed on consignment. "Because small children grow
so quickly," Second Avenue's owner commented, "they often outgrow many of their clothes
before they've hardly been worn!"
Second Avenue provides a way for people to sell their children's clothing, earn a few
dollars, and buy the next larger size. "We're extremely picky about the condition of the
clothing we stock," the owner stated, "but we sell most items at a 60-percent discount."
147) The owner of Second Avenue wants to establish a community clothing drive to collect
clothes for a local children's shelter. The owner is planning to set up collection barrels outside
Second Avenue. In this case, which of the following public relations tools is being used by
the owner?
A) press relations
B) product publicity
C) lobbying
D) development
E) public
affairs Answer:
E
Skill: Application
148) Companies use PR to build good relations with consumers, investors, the media, and
their communities.
Answer: TRUE
Skill: Concept
Difficulty: Easy
149) PR can have a strong impact on public awareness at a much higher cost than advertising
can.
Answer: FALSE
Skill: Concept
Difficulty: Easy
150) When using public relations, the company pays for space and time in the
media. Answer: FALSE
Skill: Concept
Difficulty: Easy
151) Changing technologies, especially with digital content, is significantly increasing the role
of public relations in a firm's integrated marketing communications program.
Answer: TRUE
Skill: Concept
Difficulty: Easy
152) Describe the significance of public relations as a mass-promotion tool.

Answer: Public relations is used to promote products, people, places, ideas, activities,
organizations, and even nations. Companies use PR to build good relations with consumers,
investors, the media, and their communities. Trade associations have used PR to rebuild interest
in commodities, such as eggs, apples, potatoes, milk, and even onions.
Skill: Concept
153) Explain why a public relations campaign can be a more cost-effective option
for corporations than an advertising campaign.
Answer: Public relations can have a strong impact on public awareness at a much lower cost
than advertising can. The company does not pay for the space or time in the media. Rather, it
pays for a staff to develop and circulate information and to manage events. If the company
develops an interesting story or event, it could be picked up by several different media, having
the same effect as advertising that would cost millions of dollars. And it would have more
credibility than advertising.
Skill: Concept
154) Describe public relations and any three of its main functions.
Answer: Student answers may include this description and any three function descriptions.
Public relations departments build good relations with the company's various publics by
obtaining favorable publicity, building up a good corporate image, and handling or heading off
unfavorable rumors, stories, and events. Some of its functions are:
-Product publicity: publicizing specific products
-Public affairs: building and maintaining national or local community relations
-Lobbying: building and maintaining relations with legislators and government officials to
influence legislation and regulation
-Press relations: creating and placing newsworthy information in the new media to attract
attention to a person, product, or service associated with the company
-Investor relations: maintaining relationships with shareholders
-Development: working with donors or members of nonprofit organizations to gain financial or
volunteer support
Skill: Concept
155) Which of the following is NOT a major public relations tool?

A) trade shows and conferences
B) stationery, logos, and uniforms
C) public service activities
D) videos
E) annual reports and brochures
Answer: A
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Easy
156) Which of the following is a major tool used by PR professionals?

A) standardized global advertising
B) market penetration
C) news
D) bait-and-switch strategy
E) product
packaging Answer:
C
Skill: Concept
Difficulty: Easy
157) News conferences, press tours, and grand openings are examples of , a type of
tool commonly used by public relations professionals.
A) public service activities
B) special events
C) social networking
D) development
E) investor
relations Answer: B
Skill: Concept
Difficulty: Easy
158) Which of the following would most likely be included in the written materials prepared by
PR professionals to reach and influence target markets?
A) employee code of conduct
B) annual reports
C) memorandum of association
D) advertisement jingles
E) white papers
Answer: B
Skill: Concept
Difficulty: Easy
159) Which of the following is an example of audiovisual material used by PR professionals?

A) blogs
B) logos
C) vision statements
D) brochures
E) online videos
Answer: E
Skill: Concept
160) Logos, uniforms, brochures, and company trucks are all examples of materials
that can be used to help a company create a visual image which the public can immediately
recognize.
A) direct marketing
B) social marketing
C) public service
D) corporate identity
E) buzz
marketing
Answer: D
Skill: Concept
Difficulty: Easy
161) In an attempt to set the company apart from its competitors, Central Parcel Service (CPS)
has its employees wear brown uniforms and drive brown trucks. What type of public relations
tool is being used by CPS?
A) buzz marketing
B) corporate logos
C) corporate identity materials
D) product publicity
E) public service
materials Answer: C
Skill: Application
162) Steps involved in determining when and how to use product public relations include
, choosing the PR message and media, implementing the PR plan, and evaluating the
results, plus integrating with the full marketing communications effort.
A) defining the budget
B) hiring the media creators
C) collecting feedback
D) setting PR objectives
E) determining the
messenger Answer: D
Skill: Concept
Difficulty: Easy
163) Corporate identity materials help create a corporate identity that the public
immediately recognizes.
Answer: TRUE
Skill: Concept
164) A company's Web site can be an important public relations

vehicle. Answer: TRUE
Skill: Concept
Difficulty: Easy
165) While a company can choose to participate in public service activities, doing so has no
impact on public goodwill toward the company.
Answer: FALSE
Skill: Concept
Difficulty: Easy
166) Public relations specialists use several tools. Identify three of these tools and describe how
they can help a company communicate with the public.
Answer: Students' answers may include any three of the following.
PR professionals find or create favorable news about the company and its products or people.
Sometimes news stories occur naturally, and sometimes the PR person can suggest events or
activities that would create news.
Speeches can also create product and company publicity. Increasingly, company executives
must field questions from the media or give talks at trade associations or sales meetings, and
these events can either build or hurt the company's image.
Another common PR tool is special events, ranging from news conferences, press tours, grand
openings, and fireworks displays to laser shows, hot air balloon releases, multimedia
presentations, or educational programs designed to reach and interest target publics.
Public relations people also prepare written materials to reach and influence their target
markets. These materials include annual reports, brochures, articles, and company newsletters
and magazines.
Audiovisual materials, such as slide-and-sound programs, DVDs, and online videos are being
used increasingly as communication tools.
Corporate identity materials can also help create a corporate identity that the public
immediately recognizes. Logos, stationery, brochures, signs, business forms, business cards,
buildings, uniforms, and company cars and trucks—all become marketing tools when they are
attractive, distinctive, and memorable.
Companies can improve public goodwill by contributing money and time to public service
activities.
Skill: Concept

Chapter 16 Personal Selling and Sales Promotion
1) Which of the following is true with regard to personal selling?

A) Personal selling entails personal presentations by a firm's sales force for the purpose of
making sales and building customer relationships.
B) Personal selling involves making personal requests to potential buyers to enter into short-
term business relationships with firms.
C) Personal selling distances the buyer from the seller and does not focus on building enduring
relationships.
D) An outside sales force is not involved in personal selling.
E) Personal selling is a relatively new profession.
Answer: A
Skill: Concept
Objective: LO 16.1: Discuss the role of a company's salespeople in creating value for customers
and building customer relationships.
Difficulty: Easy
2) A(n) is an individual who represents a company to customers by prospecting,

communicating, selling, servicing, information gathering, and/or relationship building.
A) auditor
B) trainer
C) salesperson
D) manager
E) human resource personnel
Answer: C
Skill: Concept
Difficulty: Easy
3) Which of the following is true about the sales force of a company?

A) Salespeople represent customers to the company and manage the buyer-seller relationship.
B) Salespeople represent workers' interests to upper management.
C) The primary responsibility of a sales force is to formulate operational strategies.
D) The sales force is responsible for product development and product strategy.
E) The sales force oversees the auditing process and recovers money from defaulting
customers.
Answer: A
Skill: Concept
4) Which of the following is NOT a position that a salesperson covers?

A) order taker
B) creative seller
C) order getter
D) relationship builder
E) shipping arranger
Answer: E
Skill: Concept
5) Which of the following is true about the sales force of a company?

A) Salespeople rely on engineers and manufacturers to learn about customer needs.
B) The sales force plays a minor role in customer-company relationships.
C) Salespeople rarely visit in person with customers.
D) Salespeople represent customers to the company, championing customers' interests.
E) Salespeople do not have the authority to act on customers'
objections. Answer: D
Skill: Concept
6) Which of the following would most likely improve coordination between marketing
and sales?
A) Salespeople should directly participate in the development of new products.
B) Salespeople should participate in marketing planning sessions by sharing firsthand
customer knowledge.
C) The sales force should strategize promotional strategies and be the primary decision makers
about marketing.
D) Marketing managers should field test new promotion strategies before the sales team.
E) The marketing and sales departments should conduct annual job rotations.
Answer: B
Skill: Concept
7) Which of the following is NOT likely to improve coordination between marketing and sales?
A) appointing a high-level marketing executive to oversee both marketing and sales
B) arranging joint meetings and spelling out communications channels
C) creating rewards systems that put marketing and sales in competition with each other
D) including brand managers in sales calls
E) adding marketing-sales liaisons to coordinate programs and
efforts Answer: C
Skill: Concept
8) At Price & Wallace Inc., a pharmaceuticals company, members of the sales force and
marketing department tend to have disagreements when things go wrong with a customer. The
marketers blame the salespeople for poorly executing their strategies, while the salespeople
blame the marketers for being out of touch with customers. Which of the following steps
should upper management at Price & Wallace take to help bring the sales and marketing
functions closer together?
A) establish a customer sales force structure and make sure that sales quotas are easily
achievable
B) establish a complex sales force structure
C) emphasize traditional methods of selling
D) adopt a sales force automation system and implement team selling
E) appoint a high-level marketing executive to oversee both marketing and sales
Answer: E
Skill: Application
9) All companies must have salespeople.

Answer: FALSE
Skill: Concept
Difficulty: Easy
10) Personal selling involves interpersonal interactions between salespeople and individual
customers.
Answer: TRUE
Skill: Concept
Difficulty: Easy
11) Salespeople do not represent customers to the company.

Answer: FALSE
Skill: Concept
Difficulty: Easy
12) What is personal selling?

Answer: Personal presentations by the firm's sales force for the purpose of making sales and
building customer relationships is known as personal selling.
Skill: Concept
Difficulty: Easy
13) Describe the nature of personal selling and the role of the sales force.
Answer: Today, most salespeople are well-educated and well-trained professionals who work
to build and maintain long-term customer relationships by listening to their customers,
assessing customer needs, and organizing the company's efforts to solve customer problems.
The best salespeople are the ones who work closely with customers for mutual gain. Personal
selling is the interpersonal arm of the promotion mix. The sales force acts as a critical link
between a company and its customers. Salespeople represent the company to the customer and
the customer to the company to produce customer satisfaction and company profit.
Skill: Concept
14) is defined as analyzing, planning, implementing, and controlling sales force

activities.
A) Benchmarking
B) Sales force management
C) Business intelligence
D) Sales force automation
E) Sampling
Answer: B
Skill: Concept
Objective: LO 16.2: Identify and explain the six major sales force management steps.
Difficulty: Easy
15) Sales force management includes all of the following EXCEPT salespeople.
A) recruiting
B) evaluating
C) paying
D) supervising
E) training
Answer: C
Skill: Concept
Difficulty: Easy
16) Which of the following questions is NOT asked when designing a sales force strategy
and structure?
A) Should salespeople sell in the field, by phone, or using online and social media?
B) Should salespeople work alone or in teams with other company employees?
C) How big should the sales force be?
D) Should salespeople follow strict steps in the sales process?
E) How should salespeople and their tasks be
structured? Answer: D
Skill: Concept
17) In the , each salesperson is assigned to an exclusive geographic area and sells the
company's full line of products or services to all customers in that region.
A) territorial sales force structure
B) digital marketing system
C) product sales force structure
D) geographical operations system
E) customer sales force structure
Answer: A
Skill: Concept
Difficulty: Easy
18) Which of the following is true about the territorial sales force structure?
A) The territorial sales force structure does not define each salesperson's job clearly.
B) Salespeople specialize in selling only a small portion of the company's products.
C) In a territorial sales force structure, separate sales forces are set up for different industries.
D) Travel expenses are relatively small as each salesperson travels within a limited
geographic area.
E) In a territorial sales force structure, separate sales forces are often established to handle a
single, large account in every territory.
Answer: D
Skill: Concept
19) Ultra Tech Inc., a company manufacturing gardening tools, has decided to switch to a
territorial sales force structure. Which of the following benefits is the company most likely
to gain as a result of this decision?
A) The cost of training new recruits would be eliminated.
B) An increased focus on short-term customer relationships would boost local sales of
specialized products.
C) Each salesperson would be assigned to sell a single product in which he/she specializes.
D) The capacity for mass production of a wide range of products would significantly increase.
E) As each salesperson travels within a limited geographic area, travel expenses would decline.
Answer: E
Skill: Application
20) If a company , it should adopt a product sales force structure, in which the sales
force specializes along product lines.
A) specializes in a single product
B) manufactures a small number of simple products
C) maintains that product specialization is counterproductive
D) has numerous and complex products
E) lacks salespeople with superior technical know-how
Answer: D
Skill: Concept
Difficulty: Easy
21) Which of the following is true about the product sales force structure?
A) A product sales force structure is most appropriate for a company that manufactures a
small number of simple products.
B) In a product sales force structure, each salesperson is assigned to an exclusive geographic
area and sells the company's full line of products or services to all customers in that
territory.
C) In a product sales force structure, salespersons specialize in only a particular product line as
the company produces numerous and complex products.
D) In a product sales force structure, a single salesperson can become an expert in all product
categories.
E) In a product sales force structure, specialization is highly discouraged.
Answer: C
Skill: Concept
22) In the , separate sales forces are set up for different industries.
A) territorial sales force structure
B) digital marketing system
C) customer sales force structure
D) geographical operations system
E) product sales force structure
Answer: C
Skill: Concept
23) Which of the following is true about the customer sales force structure?
A) The customer sales force structure is a combination of territorial sales force structure and
product sales force structure.
B) Each salesperson is assigned to an exclusive geographic area and sells the company's full
line of products or services to all customers in that territory.
C) Salespersons specialize in only a particular product line as the company produces
numerous and complex products.
D) Companies using customer sales force structure tend to ignore the importance of long-term
relationship building with customers.
E) Separate sales forces are set up for different industries, serving current customers
versus finding new ones.
Answer: E
Skill: Concept
24) Johnson Business Solutions maintains one sales force for its copy machines and a separate
sales force for its computer systems. Johnson Business Solutions utilizes a .
A) product sales force structure
B) customer sales force structure
C) territorial sales force structure
D) digital marketing system
E) geographical operations
system Answer: A
Skill: Application
25) In what situation is a complex sales force structure used?

A) when a company sells a narrow variety of products to few types of customers over a
broad geographic area
B) when a company sells a wide variety of products to many types of customers over a broad
geographic area
C) when a company sells a wide variety of products to many types of customers over a
small geographic area
D) when a company sells a wide variety of products to few types of customers over a
E) when a company sells a narrow variety of products to many types of customers over a
Answer: B
Skill: Concept
26) Morrill Motors splits the United States of America into 10 sales regions. Within each
of those regions, the company has separate sales personnel selling the company's full line
of products. Morrill Motors uses a sales force structure.
A) territorial
B) complex
C) customer
D) product
E) market
Answer: A
Skill: Application
27) Which of the following helps companies in setting sales force size?
A) workload approach
B) pull strategy
C) push strategy
D) top-down approach
E) bottom-up approach
Answer: A
Skill: Concept
Difficulty: Easy
28) The workload approach takes into account all of the following EXCEPT .
A) customer account status
B) amount of effort required to maintain the account
C) customer account size
D) number of times each class of account is to be contacted
E) success rate at closing orders with
account Answer: E
Skill: Concept
29) Sigma Inc. has 2,000 Type-A accounts, each requiring 35 calls per year, and 1,000 Type-
B accounts, each requiring 15 calls per year. What is the sales force's workload?
A) 15,000 calls
B) 35,000 calls
C) 70,000 calls
D) 85,000 calls
E) 95,000 calls
Answer: D
Skill: Application
30) Stahl Inc. has 1,000 A-level accounts, each requiring 30 calls per year, and 3,000 B-
level accounts, each requiring 10 calls per year. If each salesperson at Stahl Inc. can make
1,500 sales calls per year, how many salespeople would be needed to meet the total
workload?
A) 25
B) 35
C) 40
D) 45
E) 60
Answer: C
Skill: Application
31) Kevin is a salesperson working for a company that manufactures gardening tools. He is
involved in door-to-door sales and travels every day to call on customers. In his company,
Kevin is most likely a part of the .
A) top management
B) inside sales force
C) product designing team
D) customer support team
E) outside sales force
Answer: E
Skill: Application
Difficulty: Easy
32) Robin works in a manufacturing company in Ohio. She sells products and handles
customer requests via the company's online live chat feature. In her company, Robin is most
likely a part of the .
A) outside sales force
B) inside sales force
C) product designing team
D) operations management team
E) executive
management Answer: B
Skill: Application
Difficulty: Easy
33) Which of the following is true with regard to the inside sales force of a company?
A) The inside sales force is invariably more attentive to customer needs than the outside sales
force.
B) Unlike the outside sales force, the inside sales force does not require training.
C) Inside sales representatives engage in face-to-face interaction with customers.
D) The inside sales force is far more knowledgeable about customer habits than are outside
salespeople.
E) Inside salespeople provide support for the outside sales force, freeing them to spend
more time selling to major accounts and finding new prospects.
Answer: E
Skill: Concept
Difficulty: Easy
34) Kelly works as a sales representative at Ginner Machine Works. She uses the phone and
the Internet to identify prospects and make sales. Kelly calls customers and explains the
products offered by Ginner and the advantages of using them. If requested, she also mails the
customer product information brochures. Which of the following is most likely Kelly involved
in?
A) outside selling
B) technical sales support
C) telemarketing and online selling
D) research and administrative backup
E) field
sales
Answer: C
Skill: Application
Difficulty: Easy
35) Which of the following best explains the growth of telephone and online selling?
A) the use of the Do Not Call Registry
B) the ability to make up to 8 times as many more customer contacts per day than an outside
salesperson
C) the similarity in cost between the inside and outside sales forces
D) the difficulty and expense of reaching some customers
E) the preference of customers for face-to-face contact
Answer: B
Skill: Concept
36) Travis Computing Systems earns most of its revenue from sales and in-person computer
services. The sales force at Travis recently began telemarketing and online selling. How
would telemarketing and online selling most likely benefit Travis?
A) The need for an outside sales force would be completely eliminated through telemarketing.
B) Travis sales reps would be able to engage in more frequent face-to-face interaction
with large, high-value customers.
C) Travis sales reps would be able to service hard-to-reach customers more effectively.
D) The overhead costs of Travis would significantly decrease.
E) The current liabilities of Travis would
decrease. Answer: C
Skill: Application
37) Amanda Perkins is a senior sales manager in Arlington Steelworks. As the customer base
of her company has grown larger and more demanding over the last few years, Amanda insists
on
, or using groups of people from various departments such as sales, technical support,
engineering, and even upper management to service complex accounts.
A) cross selling
B) e-procurement
C) team selling
D) observational research
E) vendor screening
Answer: C
Skill: Application
Difficulty: Easy
38) Which of the following best explains why companies are adopting the team selling
approach to service large, complex accounts?
A) Products have become too complicated for one salesperson to handle a large
company's needs.
B) Customers prefer dealing with many salespeople rather than one sales representative.
C) Job rotation, an integral part of team selling, keeps workers motivated and boosts
their morale.
D) Team selling facilitates the evaluation of individual contributions.
E) With team selling, companies are not required to train the outside sales force any
longer. Answer: A
Skill: Concept
39) A(n) is a written representation of a salesperson's completed activities.
A) bill of sale
B) call report
C) tender
D) sales quotation
E) contract of sale
Answer: B
Skill: Concept
Difficulty: Easy
40) All of the following are disadvantages of team selling EXCEPT .

A) selling teams can be confusing and overwhelming for customers
B) salespeople who are used to having customers all to themselves may have trouble learning to
work with and trust others on a team
C) team selling reduces the overall efficiency of the selling process
D) individual contributions and compensations can be difficult to assess in team selling
E) team selling discourages individual contributors because the team receives credit for good
performance
Answer: C
Skill: Concept
41) Hannah Adams is a senior sales manager in Elmo Corp., a rapidly growing company
manufacturing personal computers and printers. In order to handle sales effectively, Hannah
insists on using the services of different groups of people from different departments within
the company such as the sales, marketing, technical support, and finance departments. In this
instance, Hannah makes use of .
A) team selling
B) competitive marketing intelligence
C) hybrid selling
D) occasion segmentation
E) sales force automation
systems Answer: A
Skill: Application
Difficulty: Easy
42) All of the following are problems associated with the poor selection of salespeople
EXCEPT .
A) lower sales
B) costly turnover
C) less productivity
D) fewer training expenses
E) disruptive customer
relationships Answer: D
Skill: Concept
43) Eric Brown is a human resource manager in a company selling and manufacturing personal
computers. Who among the following is Eric most likely to hire as a salesperson if his
objective is to minimize training costs post recruitment?
A) Samantha, a fresh college graduate
B) Richard, a product developer from a competing firm
C) Nancy, an experienced engineer with no prior experience in personal selling
D) Melissa, a proven salesperson from a competing firm
E) Henry, a young salesperson with a few months' experience in a large
MNC Answer: D
Skill: Concept
44) Which of the following abilities would LEAST likely be measured when recruiting
and testing applicants for a sales position?
A) sales aptitude
B) work style
C) accounting skills
D) motivation
E) relationship skills
Answer: C
Skill: Concept
Difficulty: Easy
45) The purpose of a training program for salespeople is to teach them about all of the
following EXCEPT .
A) customers' buying habits
B) customers' buying motives
C) competitor strategies
D) industry history
E) company
goals Answer: D
Skill: Concept
46) Which of the following is a primary reason that companies use e-learning to conduct sales
training programs?
A) Customer needs and habits can be unambiguously conveyed through online
training programs.
B) Sales training programs that do not use e-learning are mostly ineffective.
C) E-learning eliminates employee attrition.
D) E-learning is the best way to simulate real-life sales calls.
E) E-learning cuts travel and training costs.
Answer: E
Skill: Concept
47) A hybrid sales rep .

A) works exclusively from remote locations
B) is a modern cross between a field sales rep and an inside rep
C) rarely engages in face-to-face interactions with customers
D) performs sales audits
E) sets the sales objectives of
companies Answer: B
Skill: Application
Difficulty: Easy
48) All of the following are basic types of compensation plans for salespeople EXCEPT
.
A) straight commission
B) straight salary
C) salary plus commission
D) salary plus company shares
E) salary plus bonus
Answer: D
Skill: Concept
49) More and more companies are moving away from high-commission plans because
.
A) outside salespeople tend to undermine the efforts of the inside sales team
B) high-commission plans require salespeople to work overtime
C) salespeople tend to become pushy which affects customer relationships
D) salespeople are prone to taking multiple sales jobs to maximize their income
E) salespeople end up spending too much time traveling to meet
customers Answer: C
Skill: Concept
Difficulty: Easy
50) Which of the following is most likely a true statement about sales compensation
in economically tough circumstances?
A) Cutting sales force compensation is usually a last resort for firms that want to
maintain positive customer relationships.
B) Morale is boosted by distributing commissions equally among low and high
sales performers.
C) Online selling is discontinued to improve customer relations.
D) Compensation for the inside sales force is reduced to increase commissions for the outside
sales force.
E) Low performers are retained and top performers are dismissed to reduce
commission payments.
Answer: A
Skill: Concept
51) A(n) shows how much time is spent selling, traveling, waiting, taking breaks,
and doing administrative chores by the salesperson.
A) customer relationship management tool
B) corporate social networking site
C) time-and-duty analysis tool
D) outsourcing relationship management tool
E) product lifecycle management
analysis Answer: C
Skill: Concept
Difficulty: Easy
52) Which of the following is the best way for a company to increase selling time?
A) implementing high-commission plans
B) reducing the number of customers
C) sharing less information with customers
D) simplifying administrative duties
E) implementing mass
customization Answer: D
Skill: Concept
53) Which of the following involves computerized, digitized sales force operations that let
salespeople work more effectively anytime, anywhere?
A) SWOT analysis
B) BCG matrix
C) digital marketing system
D) sales force automation system
E) field service management
system Answer: D
AACSB: Analytical thinking; Information technology
Skill: Concept
54) Which of the following is an advantage of using a sales force automation system?
A) lowers sales team training costs
B) records major competitor's sales
C) eliminates the need for an inside sales force
D) eliminates employee attrition
E) improves customer service
Answer: E
Skill: Concept
55) refers to the standard that establishes the amount each salesperson should sell
and how sales should be divided among the company's products.
A) Conditional sale
B) A bill of sale
C) A sales quota
D) Prospecting
E) Satisficing
Answer: C
Skill: Concept
Difficulty: Easy
56) Which of the following refers to a positive incentive intended to increase the sales force
effort?
A) sales contests
B) prospecting
C) telecommuting
D) sales collateral
E) annual sales plan
Answer: A
Skill: Concept
Difficulty: Easy
57) Mary Conti, a sales manager at National Computer Training, wants to evaluate the
performance of her sales force in the New England territory. Which of the following
would Mary most likely use?
A) SWOT analysis
B) breakeven analysis
C) sales forecast
D) expense reports
E) call plan
Answer: D
Skill: Application
58) At the beginning of each year, the management of Dee Decor states the exact amount
a salesperson should sell. This specific sales target is also known as a .
A) sales lead
B) prospect
C) bill of sale
D) channel length
E) sales quota
Answer: E
Skill: Application
Difficulty: Easy
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck
industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of
hub and axle components to those customers. Monthly sales at Reliable Tools are
approximately $1 million. "You might say we have all our eggs in one basket," says owner
Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large
accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and
Indiana, which means that travel time to all customers is relatively short. However, given the
nature of the industry, time spent with each customer is crucial.
59) How would a customer sales force structure benefit Reliable Tools?
A) It would eliminate the need for the company's salespeople to travel to meet customers.
B) It would enable the company's salespeople to build close relationships with customers.
C) It would help the company's salespeople become experts in the products they sell.
D) It would enable the company's management to cut training costs substantially.
E) It would make telemarketing
irrelevant. Answer: B
Skill: Application
60) For sales managers to understand how the members of the Reliable Tools sales force
spend their time, the salespeople must submit a(n) .
A) expense report
B) time-and-duty analysis
C) mobile conferencing schedule
D) sales forecast
E) incentive plan
Answer: B
Skill: Application
61) Several compensation plans are available to reward and motivate Reliable Tool's
salespeople. Since generating new leads and new business can be a goal for the sales force,
which compensation plan approach is MOST likely to motivate and direct the salespeople
in that direction?
A) straight commission
B) salary plus bonus
C) straight salary
D) salary plus commission
E) salary, commission, and
bonus Answer: E
Skill: Application
62) Purposes of social selling, the use of online, mobile, and social media, are to do all of the
following EXCEPT .
A) augment sales performance
B) eliminate person-to-person selling
C) build stronger customer relationships
D) engage customers
E) provide customers more control over the selling process
Answer: B
Skill: Application
63) Disadvantages of social selling include .

A) its impact on efficiency
B) its ability to provide information
C) its expense and the difficulty of presenting some things via the Internet
D) the ability to spot opportunities
E) its impact on productivity
Answer: C
Skill: Application
64) Sales force management refers to hiring and training the sales force.
Answer: FALSE
Skill: Concept
Difficulty: Easy
65) In the territorial sales force structure, each salesperson is responsible for selling a single,
exclusive product across different geographical regions.
Answer: FALSE
Skill: Concept
Difficulty: Easy
66) In a territorial sales force structure, as each salesperson travels within a limited geographic
area, travel expenses are relatively small.
Answer: TRUE
Skill: Concept
Difficulty: Easy
67) If a company has numerous and complex products, it can adopt a product sales force
structure in which the sales force specializes along product lines.
Answer: TRUE
Skill: Concept
Difficulty: Easy
68) In a product sales force structure, no single salesperson can become an expert in all of the
product categories, so product specialization is required.
Answer: TRUE
Skill: Concept
Difficulty: Easy
69) In the customer sales force structure, each salesperson is assigned to an exclusive
geographic area and sells the company's full line of products or services to all customers in that
territory.
Answer: FALSE
Skill: Concept
Difficulty: Easy
70) In a complex sales force structure, salespeople can be specialized by customer and
territory; product and territory; product and customer; or territory, product, and customer.
Answer: TRUE
Skill: Concept
Difficulty: Easy
71) The workload approach is used to determine the type of sales force structure required by a
company.
Answer: FALSE
Skill: Concept
Difficulty: Easy
72) The inside sales force consists of salespeople who conduct business from their offices
via telephone, the Internet, or visits from buyers.
Answer: TRUE
Skill: Concept
Difficulty: Easy
73) Sales assistants confirm appointments, follow up on deliveries, and answer

customers' questions when outside salespeople cannot be reached.
Answer: TRUE
Skill: Concept
Difficulty: Easy
74) Telemarketing has ceased to be an important tool for most B-to-B marketers owing to
the federal government's Do Not Call Registry.
Answer: FALSE
Skill: Concept
Difficulty: Easy
75) Using teams of people from sales, marketing, engineering, finance, technical support, and
even upper management to service large, complex accounts is known as complex selling.
Answer: FALSE
Skill: Concept
Difficulty: Easy
76) Training online instead of on-site can cut travel and other training costs, and it takes up
less of a salesperson's selling time.
Answer: TRUE
Skill: Concept
Difficulty: Easy
77) Companies are increasingly adopting high-commission plans to make sure that salespersons
are motivated to build long-term relationships with customers.
Answer: FALSE
Skill: Concept
Difficulty: Easy
78) The goal of supervision is to encourage salespeople to "work hard" and

energetically toward sales force goals.
Answer: FALSE
Skill: Concept
Difficulty: Easy
79) Salespeople are only evaluated on the number of sales they close within a certain time
frame.
Answer: FALSE
Skill: Concept
Difficulty: Easy
80) Social selling emphasizes personal contact between the company and its customers.
Answer: FALSE
Skill: Concept
Difficulty: Easy
81) What is the role of a salesperson in a territorial sales force structure?

Answer: In the territorial sales force structure, each salesperson is assigned to an exclusive
territory.
Skill: Concept
Difficulty: Easy
82) Under what conditions is a company most likely to use a product sales force structure?
Answer: If a company has numerous and complex products, it can adopt a product sales force
structure, in which the sales force specializes along product lines.
Skill: Concept
Difficulty: Easy
83) Why and how do companies use workload approach?
Answer: Many companies use some form of workload approach to set sales force size. Using
this approach, a company first groups accounts into different classes according to size, account
status, or other factors related to the amount of effort required to maintain the account. It then
determines the number of salespeople needed to call on each class of accounts the desired
number of times.
Skill: Concept
84) Distinguish between an outside sales force and an inside sales force.
Answer: Outside sales force (or field sales force) consists of salespeople who travel to call on
customers in the field. On the other hand, inside sales force consists of salespeople who
conduct business from their offices via telephone, the Internet, or visits from prospective
buyers.
Skill: Concept
85) What is the goal of training salespeople?

Answer: Training programs have several goals. First, salespeople need to know about
customers and how to build relationships with them. Therefore, the training program must teach
them about different types of customers and their needs, buying motives, and buying habits. It
must also teach them how to sell effectively and train them in the basics of the selling process.
Salespeople also need to know and identify with the company, its products, and its competitors.
Therefore, an effective training program teaches them about the company's objectives,
organization, products, and the strategies of major competitors.
Skill: Concept
Difficulty: Easy
86) What does a call plan show?

Answer: The weekly, monthly, or annual call plan shows which customers and prospects to call
on and which activities to carry out.
Skill: Concept
Difficulty: Easy
87) Why have firms adopted sales force automation systems?
Answer: Many firms have adopted sales force automation systems to help their salespeople
better manage their time, improve customer service, lower sales costs, and increase sales
performance.
Skill: Concept
Difficulty: Easy
88) Why is a firm's organizational climate an important part of building a successful sales
staff? Answer: Organizational climate describes the feeling that salespeople have about their
opportunities, value, and rewards for a good performance. Some companies treat salespeople as
if they are not very important, so performance suffers accordingly. Other companies treat their
salespeople as valued contributors and allow virtually unlimited opportunity for income and
promotion. Not surprisingly, these companies enjoy higher sales force performance and less
turnover.
Skill: Concept
89) Discuss the differences between the three major sales force structures. What are
the potential benefits of each structure?
Answer: In the territorial sales force structure, each salesperson is assigned to an exclusive
territory. This organization clearly defines each person's job, fixes accountability, and increases
the person's desire to build local business relationships that improve selling effectiveness.
The product sales force structure allows the sales force to sell along product lines; the seller
becomes very knowledgeable about products.
The customer sales force structure organizes its sales force along customer or industry lines.
This can help a company build closer relationships with important customers.
Skill: Concept
90) Why are more companies using team selling? What are its pros and cons?
Answer: Team selling is useful for servicing large, complex accounts. Sales teams can uncover
problems, solutions, and sales opportunities that no individual salesperson could. In many
cases, the move to team selling mirrors similar changes in customers' buying organizations.
Many large customer companies have implemented team-based purchasing, requiring marketers
to employ equivalent team-based selling. When dealing with large, complex accounts, one
salesperson can't be an expert in everything the customer needs. Instead, selling is done by
strategic account teams, quarterbacked by senior account managers or customer business
managers.
Team selling does have some pitfalls, however. For example, salespeople are by nature
competitive and have often been trained and rewarded for outstanding individual performance.
Salespeople who are used to having customers all to themselves may have trouble learning to
work with and trust others on a team. In addition, selling teams can confuse or overwhelm
customers who are used to working with only one salesperson. Finally, difficulties in evaluating
individual contributions to the team selling effort can create some sticky compensation issues.
Skill: Concept
91) How do successful companies recruit and train their salespeople? What does an
effective training program teach salespeople?
Answer: When recruiting, a company should analyze the sales job itself and the characteristics
of its most successful salespeople to identify the traits needed by a successful salesperson in
their industry. Then it must recruit the right salespeople. The human resources department
looks for applicants by getting names from current salespeople, using employment agencies,
searching the Internet, placing classified ads, and working through college placement services.
Another source is to attract top salespeople from other companies. Proven salespeople need less
training and can be productive immediately.
New salespeople may spend anywhere from a few weeks or months to a year or more in
training. After the initial training ends, most companies provide continuing sales training via
seminars, sales meetings, and Internet e-learning throughout the salesperson's career. Many
companies are now using imaginative and sophisticated e-learning techniques to make sales
training more efficient.
Salespeople also need to know and identify with the company, its products, and its competitors.
Therefore, an effective training program teaches them about the company's objectives,
organization, products, and the strategies of major competitors.
Skill: Concept
92) Describe some of the methods used to supervise salespeople and help them work
more efficiently.
Answer: Through supervision, or helping salespeople "work smart," companies can help
salespeople do the right things in the right way. This includes helping salespeople identify
target customers and manage their time. A weekly, monthly, or annual call plan is used in
many companies to show salespeople which customers and potential customers to call on
within a given time period and which activities to carry out. Companies often use time-and-
duty- analysis. In addition to time spent selling, the salesperson spends time traveling, waiting,
taking breaks, and doing administrative chores. Companies are always looking for ways to save
time
—simplifying administrative duties, developing better sales call and routing plans, supplying
more and better customer information, and using phone, e-mail, or Internet conferencing
instead of traveling.
Many firms have adopted sales force automation systems: computerized, digitized sales force
operations that let salespeople work more effectively anytime, anywhere. Companies now
routinely equip their salespeople with technologies such as laptops or tablets, smartphones,
wireless connections, videoconferencing technologies, and customer-contact and relationship
management software. Armed with these technologies, salespeople can more effectively and
efficiently profile customers and prospects, analyze and forecast sales, schedule sales calls,
make presentations, prepare sales and expense reports, and manage account relationships. The
result is better time management, improved customer service, lower sales costs, and higher
sales performance. In all, technology has reshaped the ways in which salespeople carry out
their duties and engage customers.
Skill: Concept
93) Explain the methods of evaluating the performance of a sales force. Why is the
evaluation of a company's sales force considered necessary?
Answer: Management gets information about its salespeople in several ways. The most
important source is sales reports, including weekly or monthly work plans and longer-term
territory marketing plans. Salespeople also write up their completed activities on call reports
and turn in expense reports for which they are partly or wholly reimbursed. The company can
also monitor the sales and profit performance data in the salesperson's territory. Additional
information comes from personal observation, customer surveys, and talks with other
salespeople. Using various sales force reports and other information, sales management
evaluates the members of the sales force. It evaluates salespeople on their ability to "plan their
work and work their plan." Formal evaluation forces management to develop and communicate
clear standards for judging performance. It also provides salespeople with constructive
feedback and motivates them to perform well.
On a broader level, management should evaluate the performance of the sales force as a whole.
Is the sales force accomplishing its customer relationship, sales, and profit objectives? Is it
working well with other areas of the marketing and company organization? Are sales force
costs in line with outcomes? As with other marketing activities, the company wants to measure
its return on sales investment.
Skill: Concept
94) Describe social selling and what changes it is bringing to the selling process.
Answer: The fastest-growing sales trend is the explosion in social selling—the use of online,
mobile, and social media to engage customers, build stronger customer relationships, and
augment sales performance. New digital sales force technologies are creating exciting new
avenues for connecting with and engaging customers in the digital and social media age. Used
properly, online and social media technologies will make salespeople more productive and
effective. The new digital technologies are providing salespeople with powerful tools for
identifying and learning about prospects, engaging customers, creating customer value, closing
sales, and nurturing customer relationships. Social selling technologies can produce big
organizational benefits for sales forces. They help conserve salespeople's valuable time, save
travel dollars, and give salespeople new vehicles for selling and servicing accounts.
Social selling hasn't really changed the fundamentals of selling. Sales forces have always taken
the primary responsibility for reaching out to and engaging customers and managing customer
relationships. Now, more of that is being done digitally. However, online and social media are
dramatically changing the customer buying process. As a result, they are also changing the
selling process. In today's digital world, many customers no longer rely as much as they once
did on information and assistance provided by salespeople. Instead, they carry out more of the
buying process on their own—especially the early stages.
In response to this new digital buying environment, sellers are reorienting their selling
processes around the new customer buying process. They are "going where customers are"—
social media, forums, online communities, blogs—in order to engage customers earlier. They
are engaging customers not just where and when they are buying, but also where and when they
are learning about and evaluating what they will buy.
Salespeople now routinely use digital tools that monitor customer social media exchanges to
spot trends, identify prospects, and learn what customers would like to buy, how they feel about
a vendor, and what it would take to make a sale. Today's sales forces are also ramping up their
own use of social media to engage customers throughout the buying process.
Skill: Concept
95) Which of the following is the last step in the selling process?
A) qualifying
B) handling objections
C) demonstration
D) follow-up
E) approach
Answer: D
Skill: Concept
Objective: LO 16.3: Discuss the personal selling process, distinguishing between transaction-
oriented marketing and relationship marketing.
Difficulty: Easy
96) Which of the following is the first step in the personal selling process?
A) handling objections
B) follow-up
C) presentation and demonstration
D) preapproach
E) prospecting and
qualifying Answer: E
Skill: Concept
Difficulty: Easy
97) In the stage of the selling process, a company first identifies qualified potential
customers.
A) preapproach
B) follow-up
C) prospecting
D) presentation
E) approach
Answer: C
Skill: Concept
Difficulty: Easy
98) Prospects can be qualified by looking at all of the following characteristics EXCEPT
.
A) occupational mobility
B) financial ability
C) volume of business
D) location
E) possibilities for growth
Answer: A
Skill: Concept
Difficulty: Easy
99) During the prospecting stage, a salesperson needs to identify the good leads and screen out
the poor ones through a process known as .
A) closing
B) satisficing
C) presenting
D) qualifying
E) approaching
Answer: D
Skill: Concept
Difficulty: Easy
100) Salespeople can draw prospective leads by referrals from all of the following EXCEPT
.
A) current customers
B) suppliers
C) dealers
D) directories
E) competitive salespeople
Answer: E
Skill: Concept
Difficulty: Easy
101) Before calling on a prospect, the salesperson should learn as much as possible about
the organization and its buyers. This step is known as .
A) preapproach
B) closing
C) approach
D) presentation
E) prospecting
Answer: A
Skill: Concept
Difficulty: Easy
102) refers to a practice in which salespeople drop in unannounced on various offices.
A) Hybrid selling
B) Niche marketing
C) Cold calling
D) Value selling
E) Direct
marketing Answer:
C
Skill: Concept
Difficulty: Easy
103) Which of the following will NOT be a call objective in a preapproach plan?
A) qualify the prospect
B) find the initial lead
C) gather information
D) determine the best approach and timing
E) make an immediate sale
Answer: B
Skill: Concept
Difficulty: Easy
104) In which of the following steps of the selling process is a salesperson most likely to
meet the customer for the first time?
A) prospecting
B) preapproach
C) follow-up
D) approach
E) closing
Answer: D
Skill: Concept
Difficulty: Easy
105) Which of the following is especially crucial in the approach stage of the selling process?
A) ensuring the customer understands the company's history
B) telling the customer about the company's products
C) listening to the customer
D) presenting the solution that the customer needs
E) overcoming the customer's objections
Answer: C
Skill: Concept
Difficulty: Easy
106) During the step of the selling process, the salesperson tells the value story to the
buyer, showing how the company's product or service solves the customer's problems.
A) prospecting
B) preapproach
C) presentation
D) closing
E) follow-up
Answer: C
Skill: Concept
Difficulty: Easy
107) refers to the sales step in which a salesperson asks the customer for an order.
A) Prospecting
B) Demonstration
C) Approach
D) Closing
E) Handling objections
Answer: D
Skill: Concept
Difficulty: Easy
108) All of the following are traits that buyers dislike in salespeople EXCEPT .
A) disorganization
B) tardiness
C) empathy
D) being overly talkative
E) deceit
Answer: C
Skill: Concept
Difficulty: Easy
109) Which of the following refers to a closing technique used by salespeople?

A) asking customers for referrals
B) developing solutions to customers' problems
C) seeking out hidden objections
D) reviewing points of agreement
E) taking objections as opportunities to provide more
information Answer: D
Skill: Concept
110) Which of the following steps in the selling process is most focused on ensuring
customer satisfaction and repeat business?
A) preapproach
B) demonstration
C) handling objections
D) qualifying prospects
E) follow-up
Answer: E
Skill: Concept
Difficulty: Easy
111) Which of the following is true with regard to value selling?
A) Value selling refers to earning business from customers by cutting down prices of
value products.
B) Value selling refers to delivering superior customer value and capturing a fair return on
that value.
C) Value selling refers to the mass production of inferior-quality goods for sale.
D) Value selling dilutes customer loyalty in the long run.
E) Value selling tarnishes the brand image of a product in the long
run. Answer: B
Skill: Concept
112) A salesperson of a manufacturing company has qualified a number of leads. Which of

the following is most likely the next step in the selling process?
A) calling on all the prospects one by one
B) closing the deal with the most promising prospect
C) learning as much as possible about the qualified prospects
D) handling all objections raised by the prospects
E) narrating the "value story" to the
buyer Answer: C
Skill: Application
113) Melissa Price is a member of the sales force at Urban Fashions, a Houston-based
manufacturer of women's apparel. Melissa is preparing for a first meeting with a wholesaler
who is a potential customer. She is learning as much as she can about her prospect and his
organization. Melissa is in the step of the personal selling process.
A) prospecting
B) qualifying
C) preapproach
D) follow-up
E) demonstratio
n Answer: C
Skill: Application
Difficulty: Easy
114) Which of the following is true with regard to prospecting?
A) Salespersons meet and greet the buyer.
B) Salespersons learn as much as possible about the organization.
C) Salespersons identify qualified potential customers.
D) Salespersons tell the "value story" to the buyer, showing how the company's offer solves
the customer's problems.
E) Salespersons ask for the order, review points of agreement, and offer to write up the
order. Answer: C
Skill: Concept
115) Richard, a salesperson, works for Wellington Steelworks. After researching a qualified
lead, Richard is preparing opening lines for meeting the customer for the first time. Which
step of the selling process is he about to enter?
A) follow-up
C) approach
D) presentation
E) preapproach
Answer: C
Skill: Application
116) Capitalizing on the customer's complaints about the previous detergents she has used,
Sheila, a salesperson, explains to the customer why her company's detergent Swish is better
and how it can be a one-stop solution for everyday washing. In which of the following steps of
the selling process is Sheila?
A) follow-up
C) preapproach
D) presentation
E) prospectin
g Answer: D
Skill: Application
117) After successfully overcoming a potential customer's objection to buying the vacuum
cleaner he was selling, Terrence, a salesperson, asked the customer for an order. Terrence is
in the stage of the selling process.
A) follow-up
B) approach
C) preapproach
D) closing
E) prospectin
g Answer: D
Skill: Application
Difficulty: Easy
118) Right after closing, Joshua, a senior sales manager at Halcyon Technologies, called up
the customer to ensure that she was satisfied with Halcyon's products. By calling the customer,
Joshua also wanted to ensure repeat business. In this instance, Joshua is in the stage
of the selling process.
A) follow-up
C) preapproach
D) closing
E) prospectin
g Answer: A
Skill: Application
119) The first step in the selling process is preapproach—learning about an organization and
its buyers.
Answer: FALSE
Skill: Concept
Difficulty: Easy
120) During the prospecting step of the selling process, the salesperson meets the customer for
the first time.
Answer: FALSE
Skill: Concept
Difficulty: Easy
121) During the presentation step of the selling process, the salesperson tells the "value story"
to the buyer, showing how the company's offer solves the customer's problems.
Answer: TRUE
Skill: Concept
Difficulty: Easy
122) In the follow-up stage of the selling process, the salesperson asks the customer for an
order.
Answer: FALSE
Skill: Concept
Difficulty: Easy
123) Buyers prefer to work with salespeople who are good

listeners. Answer: TRUE
Skill: Concept
Difficulty: Easy
124) How do salespeople qualify prospects?

Answer: Prospects can be qualified by looking at their financial ability, volume of business,
special needs, location, and possibilities for growth.
Skill: Concept
Difficulty: Easy
125) Why should a salesperson set call objectives?

Answer: The salesperson should set call objectives, which may be to qualify the prospect,
gather information, or make an immediate sale. This prepares the salesperson for the approach
stage of the selling process.
Skill: Concept
Difficulty: Easy
126) Briefly describe the presentation stage of the selling process.
Answer: During the presentation step of the selling process, the salesperson tells the "value
story" to the buyer, showing how the company's offer solves the customer's problems.
Skill: Concept
Difficulty: Easy
127) What are the different steps in the selling process? Briefly describe each step.
Answer: The selling process consists of seven steps: prospecting and qualifying, preapproach,
approach, presentation and demonstration, handling objections, closing, and follow-up.
1. The first step in the selling process is prospecting, in which a salesperson or company
identifies qualified potential customers.
2. Before calling on a prospect, the salesperson should learn as much as possible about the
organization (what it needs, who is involved in the buying) and its buyers (their
characteristics and buying styles). This step is known as preapproach.
3. The sales step in which a salesperson meets the customer for the first time is known as
approach. During the approach step, the salesperson should know how to meet and greet the
buyer and get the relationship off to a good start.
4. During the presentation step of the selling process, the salesperson tells the "value story" to
the buyer, showing how the company's offer solves the customer's problems.
5. The sales step in which a salesperson seeks out, clarifies, and overcomes any
customer objections to buying is known as handling objections.
6. After handling the prospect's objections, the salesperson next tries to close the sale. This
step is known as closing, in which a salesperson asks the customer for an order.
7. The last step in the selling process—follow-up—is necessary if the salesperson wants to
ensure customer satisfaction and repeat business. In this step, a salesperson follows up after the
sale to ensure customer satisfaction and repeat business.
Skill: Concept
128) What is the follow-up step of the selling process? Why is it important?
Answer: The follow-up step is important if the salesperson wants to ensure customer
satisfaction and repeat business. Right after closing, the salesperson should complete any
details on delivery time, purchase terms, and other matters. The salesperson then should
schedule a follow-up call after the buyer receives the initial order to make sure proper
installation, instruction, and servicing occur. This visit would reveal any problems, assure the
buyer of the salesperson's interest, and reduce any buyer concerns that might have arisen since
the sale.
Skill: Concept
129) How are the personal selling process and customer relationship management interrelated?
What are the primary requirements of value selling?
Answer: The selling process should be understood in the context of building and maintaining
profitable customer relationships, as companies are interested in more than simply securing a
one-time sale. Successful sales organizations recognize that winning and keeping accounts
requires more than making good products and directing the sales force to close lots of sales. If
the company wishes only to close sales and capture short-term business, it can do this by
simply slashing its prices to meet or beat those of competitors. Instead, most companies want
their salespeople to practice value selling—demonstrating and delivering superior customer
value and capturing a return on that value that is fair for both the customer and the company.
Unfortunately, in the heat of closing sales—especially in a tight economy—salespeople often
take the easy way out by cutting prices rather than selling value. Sales management's challenge
is to transform salespeople from customer advocates for price cuts into company advocates for
value. Value selling requires listening to customers, understanding their needs, and carefully
coordinating the whole company's efforts to create lasting relationships based on customer
value.
Skill: Concept
130) consists of short-term incentives to encourage the purchase of a product or

service.
A) Value selling
B) Conditional sale
C) Advertising
D) Sales promotion
E) Benchmarkin
g Answer: D
Skill: Concept
Objective: LO 16.4: Explain how sales promotion campaigns are developed and implemented.
Difficulty: Easy
131) Which of the following factors has most likely contributed to the rapid growth of sales
promotion, particularly in consumer markets?
A) declining interest in quality
B) declining advertising efficiency
C) rising hostility toward large firms
D) increasing popularity of e-procurement
E) increasing number of international firms
Answer: B
Skill: Concept
132) Sales promotions are targeted toward members of the sales force, business
customers, retailers, wholesalers, and .
A) final buyers
B) employees
C) manufacturers
D) suppliers
E) upstream
companies Answer: A
Skill: Concept
Difficulty: Easy
133) weakens a given promotion's ability to trigger an immediate purchase.

A) A customer-oriented promotion mix
B) Promotion clutter
C) Puffery
D) Local marketing
E) Niche
marketing Answer:
B
Skill: Concept
Difficulty: Easy
134) Which of the following is the most effective—but most expensive—way to introduce
a new product or create new excitement for an existing one?
A) coupons
B) sampling
C) cash refunds
D) cents-off deals
E) satisficin
g Answer: B
Skill: Concept
Difficulty: Easy
135) are offers of a trial amount of a product.

A) Samples
B) Coupons
C) Premiums
D) Rebates
E) Price packs
Answer: A
Skill: Concept
Difficulty: Easy
136) are like coupons except that the price reduction occurs after the purchase rather
than at the retail outlet.
A) Rebates
B) Promotional products
C) Premiums
D) Samples
E) Price packs
Answer: A
Skill: Concept
Difficulty: Easy
137) Which consumer promotion tool requires the consumer to provide a proof of purchase to
the manufacturer?
A) price packs
B) coupons
C) samples
D) rebates
E) displays
Answer: D
Skill: Concept
Difficulty: Easy
138) In , the producer marks the reduced prices directly on the label or package.
These offer consumers savings off the regular price of a product and are very effective in
stimulating short-term sales.
A) promotional products
B) coupons
C) cents-off deals
D) samples
E) rebates
Answer: C
Skill: Concept
Difficulty: Easy
139) are goods offered either free or at low cost as an incentive to buy a product,
ranging from toys included with kids' products to phone cards and DVDs.
A) Coupons
B) Premiums
C) Price packs
D) Rebates
E) Cents-off
deals Answer: B
Skill: Concept
Difficulty: Easy
140) are useful articles imprinted with an advertiser's name, logo, or message that are
given as gifts to consumers.
A) Rebates
B) Cents-off deals
C) Premiums
D) Promotional products
E) Sweepstake
s Answer: D
Skill: Concept
Difficulty: Easy
141) include displays and demonstrations that take place at the point of sale.
A) Rebates
B) Price packs
C) Premiums
D) POP promotions
E) Samples
Answer: D
Skill: Concept
Difficulty: Easy
142) A calls for consumers to submit an entry to be judged by a panel that will select
the best entries.
A) contest
B) sweepstake
C) sample
D) premium
E) rebate
Answer: A
Skill: Concept
Difficulty: Easy
143) Creating a brand-marketing event or serving as a sole or participating sponsor of events

created by others is known as .
A) point-of-purchase promotions
B) sweepstakes
C) team selling
D) event marketing
E) personal selling
Answer: D
Skill: Concept
Difficulty: Easy
144) refer to sales promotion tools used to persuade resellers to carry a brand, give it
shelf space, promote it in advertising, and push it to consumers.
A) Point-of-purchase promotions
B) Frequency marketing programs
C) Trade promotions
D) Events
E) Coupons and
inserts Answer: C
Skill: Concept
Difficulty: Easy
145) A manufacturer that offers cash or gifts to dealers for encouraging the purchase of
its products is using .
A) coupons
B) push money
C) promotional products
D) premiums
E) bonuses
Answer: B
Skill: Concept
146) Which of the following is used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople?
A) business plan
B) SWOT analysis
C) POP promotion
D) benchmarking
E) business
promotion Answer: E
Skill: Concept
Difficulty: Easy
147) Trade shows most likely help companies to .
A) maximize productivity
B) find new sales leads
C) trim overhead costs
D) reduce the inside sales force
E) shorten the selling
process Answer: B
Skill: Concept
148) Which of the following questions would help a marketer evaluate the return on a sales
promotion investment?
A) Was the sales force successful in filtering out the good prospects from the poor ones?
B) Did customers enjoy the events associated with the promotion?
C) Did customers receive high-quality promotional products?
D) Did the promotion attract new customers or more purchasing from current customers?
E) Were channel intermediaries effectively positioned to ensure a seamless supply of
products? Answer: D
Skill: Concept
Difficulty: Easy
149) Which of the following is an example of trade promotion?

A) manufacturers offering regular value-for-money deals to attract thrifty and value-
conscious customers
B) salespeople engaging in door-to-door selling activities
C) manufacturers offering free merchandise to resellers who feature a certain flavor or size
D) advertisers claiming that a certain product is the best in the market
E) marketers selling specialty products to a small segment of customers with
unique preferences
Answer: C
Skill: Application
Difficulty: Easy
150) Bose offers $50 cash back to customers who purchase a new speaker and send in a
proof of purchase. This is an example of a .
A) rebate
B) POP promotion
C) price pack
D) premium
E) sample
Answer: A
Skill: Application
151) Monty Boyd, an account manager, travels frequently on West Coast Airlines. Monty
earns points for every mile he flies, and he will soon have enough points to receive a free
airline ticket. West Coast Airlines is attempting to build a strong customer relationship with
Monty through a .
A) trade promotion
B) promotional product
C) rebate offer
D) point-of-purchase promotion
E) frequency marketing program
Answer: E
Skill: Application
152) Renee's, a company selling winter clothing in Chicago, ran a preseason promotion on
some of its fur jackets, offering cash refunds if the snowfall in the customer's market area
turned out to be below average. This exemplifies .
A) puffery
B) satisficing
C) prospecting
D) a price pack
E) a rebate
Answer: E
Skill: Application
153) A five-foot high cardboard display of Terry the polar bear, mascot of Terry's protein
shake, next to the shelf containing Terry's products in a supermarket is an example of a(n) .
A) sample
B) point-of-purchase promotion
C) business promotion
D) advertising specialty
E) rebate
Answer: B
Skill: Application
154) Kirk Wilkins renewed his cell phone contract with Zip Wireless Services and purchased
a new cell phone through the Zip Web site. If Kirk mails Zip Wireless Services his transaction
receipt, he would be eligible to receive $50 as cash refund. Which of the following types of
sales promotion is evident here?
A) point-of-purchase promotion
B) advertising specialty
C) premium
D) price pack
E) rebate
Answer: E
Skill: Application
155) Happy Pet is a large pet food company that has convinced the retailers and the
wholesalers of the New England area to resell its products. Happy Pet promises to reimburse
the advertising costs to its retailers and wholesalers for advertising its products. This is an
example of a(n)
.
A) trade promotion
C) sweepstake
D) price pack
E) advertising specialty
Answer: A
Skill: Application
156) Orion is planning to give away free mouse pads imprinted with the company logo and
name to anyone who enters their store on the day they launch their new laser mouse. What
kind of sales promotion is Orion planning?
A) promotional products
B) rebate
C) price packs
D) sweepstakes
E) premium
s Answer: A
Skill: Application
157) Waldo Stores will reward an all-expense-paid trip to Hawaii to anyone who correctly
guesses the date on which Waldo Stores was first established in the Boston area. Which type
of sales promotion is evident here?
A) contest
B) sample
C) premium
D) trade promotion
E) point-of-purchase
promotion Answer: A
Skill: Application
158) Blue Fizz Inc. sponsors every race that takes place at the Sears Racing Track in
Orange County, California. The high-octane racing at Sears is perfect for Blue Fizz to sell
its energy drinks and to establish the desired brand image of the company. Which type of
promotion is evident here?
A) event marketing
B) mass marketing
C) point-of-purchase promotion
D) solution selling
E) advertising
specialties Answer: A
Skill: Application
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck
industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of
hub and axle components to those customers. Monthly sales at Reliable Tools are
approximately $1 million. "You might say we have all our eggs in one basket," says owner
Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large
accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and
Indiana, which means that travel time to all customers is relatively short. However, given the
nature of the industry, time spent with each customer is crucial.
159) Which of the following promotions would be most appropriate for Reliable Tools to use
in its attempt to promote its products and generate new business leads?
A) rebates and price packs
B) premiums
C) specialty advertising
D) samples
E) conventions and trade shows
Answer: E
Skill: Application
Difficulty: Easy
160) Sales promotion consists of long-term incentives to encourage the purchase of a product
or service.
Answer: FALSE
Skill: Concept
Difficulty: Easy
161) Advertising specialties include displays and demonstrations that take place at the point of
sale.
Answer: FALSE
Skill: Concept
Difficulty: Easy
162) Creating a brand-marketing event or serving as a sole or participating sponsor of events

created by others is known as event marketing.
Answer: TRUE
Skill: Concept
Difficulty: Easy
163) Trade promotions are targeted at final buyers.

Answer:
FALSE Skill:
Concept
Difficulty: Easy
164) Business promotions are used to generate business leads, stimulate purchases,
reward customers, and motivate salespeople.
Answer: TRUE
Skill: Concept
Difficulty: Easy
165) How can sales promotion be accomplished through samples?

Answer: Sampling can be a powerful promotional tool. Some samples are free; for others, the
company charges a small amount to offset its cost. The sample might be sent by mail, handed
out in a store or at a kiosk, attached to another product, or featured in an ad or an e-mail.
Samples are sometimes combined into sample packs, which can then be used to promote
other products and services.
AACSB: Application of
knowledge Skill: Concept
Difficulty: Easy
166) Briefly explain the major sales promotion tools.

Answer: Consumer promotions include a wide range of tools—from samples, coupons,
refunds, premiums, and point-of-purchase displays to contests, sweepstakes, and event
sponsorships. Marketers also promote their brands through event marketing. They can create
their own brand-marketing events or serve as sole or participating sponsors of events created
by others.
Trade promotions can persuade resellers to carry a brand, give it shelf space, promote it in
advertising, and push it to consumers. Manufacturers often have to offer price-offs,
allowances, buy-back guarantees, or free goods to retailers and wholesalers to get products on
the shelf and, once there, to keep them on it.
Business promotions are used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople. Business promotions include many of the same tools
used for consumer or trade promotions.
AACSB: Written and oral
communication Skill: Concept

Chapter 17 Direct, Online, Social Media, and Mobile Marketing
1) Amazon.com and GEICO approach customers via Web sites or mobile apps. This is
an example of marketing.
A) mass
B) niche
C) individual
D) multi-level
E) direct
Answer: E
Skill: Concept
Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and
benefits to customers and companies.
Difficulty: Easy
2) All of the following are benefits of online direct marketing for buyers EXCEPT .
A) access to numerous products
B) access to product reviews
C) live product demonstrations
D) convenience
E) privacy
Answer: C
Skill: Concept
Difficulty: Easy
3) Advantages of direct and digital marketing for sellers include all of the following EXCEPT
.
A) low cost
B) efficiency
C) speed
D) need for sales training
E) flexibility
Answer: D
Skill: Concept
Difficulty: Easy
4) Which of the following statements is true of direct marketing?
A) Direct marketing is also referred to as referral marketing.
B) Salespersons are compensated for other salespeople they recruit.
C) Direct marketing offers sellers a low-cost alternative for reaching their markets.
D) Direct marketing involves two or more intermediaries.
E) In direct marketing, consumers earn a commission every time they buy a
product. Answer: C
Skill: Concept
5) With direct marketing, companies can interact with customers in all of the following
ways EXCEPT .
A) in person
B) learning more about customers' needs
C) personalizing products and services
D) answering questions from customers
E) by phone or online
Answer: A
Skill: Concept
Difficulty: Easy
6) Which of the following is true about online direct marketing?

A) Online direct marketing is also referred to as multi-level marketing.
B) Salespersons are compensated for other salespeople they recruit.
C) Online direct marketing allows sellers to create immediate, timely, and personal offers.
D) Online direct marketing involves two or more intermediaries.
E) In online direct marketing, outside and inside sales forces coordinate to provide value
products to customers.
Answer: C
Skill: Concept
7) All of the following are benefits of direct marketing for sellers EXCEPT .
A) access to small groups or individuals
B) program flexibility
C) mass reach and immediate returns
D) low cost
E) easy to personalize
products Answer: C
Skill: Concept
Difficulty: Easy
8) Direct and digital marketing involve targeting broad segments of

customers. Answer: FALSE
Skill: Concept
Difficulty: Easy
9) Most companies use direct marketing as a supplementary channel or

medium. Answer: TRUE
Skill: Concept
Difficulty: Easy
10) Direct marketing seldom occurs on a one-to-one, interactive basis.

Answer: FALSE
Skill: Concept
Difficulty: Easy
11) Direct marketing through catalogs and direct mailers is still the primary method used by
marketing professionals.
Answer: FALSE
Skill: Concept
Difficulty: Easy
12) For customers, the benefits of direct marketing are being able to shop online anytime and
anywhere.
Answer: TRUE
Skill: Concept
Difficulty: Easy
13) Direct marketing is an expensive way of reaching target

markets. Answer: FALSE
Skill: Concept
Difficulty: Easy
14) How does direct marketing give buyers access to more comparative information about
companies, products, and competitors?
Answer: Catalogs and Web sites, both forms of direct marketing, can provide extensive
product information and helpful product reviews. Customers can easily research companies,
products, and competitors by comparing information in catalogs or on various Web sites.
Skill: Concept
Difficulty: Easy
15) How does online marketing provide flexibility for sellers?

Answer: Online marketing allows the marketer to make ongoing adjustments to its prices and
programs or make immediate, timely, and personal announcements and offers. Online catalogs,
if used, can be adjusted daily or even hourly if needed.
Skill: Concept
Difficulty: Easy
16) Explain the major benefits of direct marketing for customers and for sellers.
Answer: For customers, direct marketing is convenient, easy to use, and private. It gives
buyers ready access to a wealth of products and information, at home or work and around the
globe. It is immediate and interactive.
For sellers, direct marketing is powerful for building customer relationships. Marketers can
target small groups or individual consumers, tailor offers to individual needs, and promote
these offers through personalized communications. It provides great timing and offers a low-
cost, efficient alternative for reaching markets.
Skill: Concept
17) Which of the following is the fastest growing form of direct marketing?
A) ambush marketing
B) digital marketing
C) direct-mail marketing
D) kiosk marketing
E) telemarketin
g Answer: B
Skill: Concept
Objective: LO 17.2: Identify and discuss the major forms of direct and digital marketing.
Difficulty: Easy
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature.
In recent years, owner Gary Zahn has served as the local representative of several musical
instrument manufacturers, providing a contact person for three local schools. He sends a sample
of a manufacturer's products to schools that request a demonstration or presentation. "If we
don't have it, we can definitely get it for you," Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a particular era
or just browsing among the hundreds of music knick-knacks in the store. Gary spends most of
his time making presentations to beginners at the local schools and making biweekly visits to
the schools to deliver instruments, make minor repairs, or pick up instruments to ship to the
manufacturer for more complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could
benefit a variety of customers. He began with a simple Web site that provided information
about the store and the types of gifts and services available. The site received so much response
that Gary added a question-and-answer option. Questions poured in, ranging from "Where can I
get sheet music for 'Hello, Dolly'?" to "Do you carry clarinet reeds?" to "My saxophone needs
two new pads. When will you be at Elmhurst School to repair it?" The Web site is now able to
accept credit card orders, and gifts can even be wrapped and shipped for no extra charge.
"This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our
novelties sales have doubled!"
18) Which kind of Web site does Treble Clef use?

A) branded community Web site
B) corporate Web site
C) investor relations Web site
D) marketing Web site
E) online Web
site Answer: D
Skill: Application
19) Digital and traditional direct marketing forms must be blended into an integrated marketing
communications program for best results.
Answer: TRUE
Skill: Concept
Difficulty: Easy
20) Identify the traditional direct marketing tools and differentiate them from the digital
direct marketing tools. What is their importance?
Answer: Traditional direct marketing tools include face-to-face selling, direct-mail marketing,
catalog marketing, telemarketing, direct-response television marketing, and kiosk marketing. In
recent years, however, digital direct marketing tools have burst onto the marketing scene,
including online marketing (Web sites, online ads and promotions, e-mail, online videos, and
blogs), social media marketing, and mobile marketing. It's important to remember that all of
these tools—both the new digital and the more traditional forms—must be blended into a fully
integrated marketing communications program.
Skill: Concept
Difficulty: Easy
21) Online companies include all of the following EXCEPT .

A) content sites
B) online social media
C) search engines and portals
D) transaction sites
E) brick-and-
mortar Answer: E
Skill: Concept
Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age
with various online marketing strategies.
Difficulty: Easy
22) Companies such as Amazon.com and Expedia.com that sell products and services
directly to final buyers exclusively over the Internet are known as .
A) transaction sites
B) content sites
C) search engines and portals
D) e-tailers
E) online social
media Answer: D
Skill: Concept
Difficulty: Easy
23) Which term best describes sites such as the New York Times on the Web and ESPN.com?
A) search engine
B) content site
C) online social network
D) transaction site
E) e-tailer
Answer: B
Skill: Concept
Difficulty: Easy
24) companies use both offline and online marketing channels.

A) Start-up
B) Click-only
C) Omni-channel retailing
D) Brick-and-mortar
E) Brick-only
Answer: C
Skill: Concept
Difficulty: Easy
25) Online marketing includes marketing via the Internet using company Web sites, e-
mail marketing, blogs, and .
A) direct mail brochures
B) live demonstrations
C) samples
D) online video
E) focus groups
Answer: D
Skill: Concept
Difficulty: Easy
26) are designed to engage consumers in interactions that will move them closer to a
direct purchase or other marketing outcome.
A) Online magazines
B) Marketing Web sites
C) Search engines
D) Digital catalogs
E) Podcasts
Answer: B
Skill: Concept
Difficulty: Easy
27) Gant Hardware is a huge chain of hardware stores. GantHardware.com helps

customers conduct product research and also lets them order directly online or redirects
them to the nearest Gant retail store. Which of the following best describes
GantHardware.com?
A) marketing Web site
B) digital catalog
C) social network
D) podcast
E) blog
Answer: A
Skill: Application
28) A(n) is designed to present brand content that engages consumers and creates
customer-brand community.
A) podcast
B) branded community Web site
C) search engine
D) digital catalog
E) online
magazine Answer:
B
Skill: Concept
Difficulty: Easy
29) Oscarz Aviation's Web site, GoOscarzAv.com, informs customers about a wide variety of
services offered by the firm. It also has a guestbook where customers can provide feedback on
their experiences with Oscarz Aviation. They can also view videos Oscarz Aviation posts, as
well as read and respond to blogs and ask questions. GoOscarzAv.com is an example of a(n)
.
A) online social network
B) blog
C) kiosk
D) branded community Web site
E) digital
catalog Answer:
D
Skill: Application
30) Spartan Sportsgear is a company that sells sports equipment for adventure sports. It recently
launched ExtremeSpartan.com to showcase products and provide testimonials of famous
adventure sports athletes who use Spartan's products. It also includes videos and blogs. Which
of the following best describes ExtremeSpartan.com?
A) branded community Web site
B) digital catalog
C) social network
D) podcast
E) blog
Answer: A
Skill: Application
31) Runner Sprintz, a particular brand of shoes, has its own Web site, myrunnersprintz.com
that welcomes consumers to "the Runner Sprintz Century," invites readers to post their Runner
Sprintz stories, and offers a wide variety of shoes for direct purchase. The site even allows
customers to individually design their own shoes and share them among their circles on the
Web site. Which of the following best describes myrunnersprintz.com?
A) Web directory
B) blog
C) corporate Web site
D) digital catalog
E) branded community Web
site Answer: E
Skill: Application
32) Which of the following is NOT a specific goal of branded community Web sites?
A) present brand content that engages consumers
B) build closer customer relationships
C) generate engagement with and between the brand and its customers
D) increase online sales
E) allows visitors to interact with likeminded people to explore and communicate
experiences with the brand
Answer: D
Skill: Concept
Difficulty: Easy
33) Companies must attract visitors to their Web sites. Which of the following is a
method companies use to entice visitors not just to visit but also to return to a site?
A) using flashy graphics, bright colors and vivid pictures
B) aggressively promoting the site in broadcast advertising and through ads and links on other
sites
C) offering prizes for visiting the site
D) providing rewards for visitors connecting their friends to the site
E) requiring registration on the first visit to the site
Answer: B
Skill: Concept
Difficulty: Easy
34) Effective Web sites contain interactive tools that help find and evaluate content of
interest, links to other related sites, useful information, changing promotional offers, and .
A) celebrity endorsers
B) respected columnists
C) advertising for unrelated products
D) enticements for customers to include their friends and contacts
E) entertaining features that lend excitement
Answer: E
Skill: Concept
Difficulty: Easy
35) Online ads that incorporate animation, video, sound, and interactivity are called .
A) search-related ads
B) rich media ads
C) content-based ads
D) digital catalogs
E) parody ads
Answer: B
Skill: Concept
Difficulty: Easy
36) In , text-based ads and links appear alongside search engine results on sites such
as Google, Yahoo!, and Bing.
A) content sponsorships
B) digital billboards
C) digital catalogs
D) contextual advertisements
E) RSS
feeds
Answer: D
Skill: Concept
Difficulty: Easy
37) While comparing hotel rates on Google's search engine, Brenda came across text-based ads
and links alongside the search results. This form of advertising is known as .
A) contextual advertising
B) rich media ads
C) content sponsorship
D) catalog advertising
E) social media
advertising Answer: A
Skill: Application
38) Which of the following is true about e-mail marketing messages?

A) E-mail marketing messages involve sending an offer, announcement, reminder, or sample
to a person living at a particular address.
B) E-mail marketing messages involve connecting directly with carefully targeted
consumers, exclusively on a one-to-one, interactive basis.
C) E-mail marketing messages are effective in reaching the desired target market and result
in low costs.
D) E-mail marketing messages cost more per thousand people reached than mass media such as
television or magazines.
E) E-mail marketing messages create a stronger emotional connection with the
customers compared to traditional direct mail.
Answer: C
Skill: Concept
39) A is an unsolicited, unwanted commercial e-mail message that clogs up e-

mailboxes.
A) catalog
B) spam
C) podcast
D) tweet
E) blog
Answer: B
Skill: Concept
Difficulty: Easy
40) Which of the following best describes permission-based e-mail marketing?
A) sending unsolicited, unwanted commercial e-mail messages
B) sending requests to users to join online social networking communities
C) sending e-mail pitches only to customers who "opt-in"
D) offering free promotional materials to new customers
E) gathering demographic details for customer databases
Answer: C
Skill: Concept
41) After selecting a sweater on the Land's End Web site, Kelly was asked to fill in details for
the customer database. Kelly was given a form that required her to fill in her name, date of
birth, and e-mail address. Kelly then checked a box that was next to the following statement:
"Yes, I would like to receive weekly promotional information from Land's End online."
Which of the following practices is evident from this scenario?
A) e-mail hosting service
B) e-mail spoofing
C) catalog marketing
D) contextual advertising
E) permission-based e-mail
marketing Answer: E
Skill: Application
42) Randy keeps getting unwanted and annoying e-mails from several marketing firms
unknown to him. The number of these e-mails is alarmingly high in his inbox. Which of
the following best describes these e-mails?
A) malware
B) adware
C) Trojan
D) firewall
E) spam
Answer: E
Skill: Application
43) involves creating a video, e-mail, mobile message, advertisement, or other
marketing event that is so infectious that customers will seek it out or pass it along to their
friends.
A) Telemarketing
B) Omni-channel marketing
C) Integrated marketing
D) Viral marketing
E) Kiosk
marketing Answer:
D
Skill: Concept
Difficulty: Easy
44) Uptown-Clean Crew is a company that provides house-cleaning services in major urban
and suburban areas. Marketers at Uptown-Clean Crew developed a short, humorous video
promoting the company's services and posted it online. Soon the video was a rage as customers
who saw the video found it hilarious and they passed it on to their friends and colleagues
calling it the "Uptown comedy." Which form of marketing is illustrated from this scenario?
A) telemarketing
B) viral marketing
C) integrated marketing
D) omni-channel marketing
E) kiosk
marketing
Answer: B
Skill: Application
45) What is a disadvantage of a viral success?

A) Many people will see the marketing message.
B) The cost per exposure is relatively low.
C) Word-of-mouth is strong.
D) Publicity is always good.
E) Marketers have little control over where the message ends up.
Answer: E
Skill: Concept
46) Which of the following is NOT a deception or fraud concern for Internet users
and marketers?
A) phishing
B) viral marketing
C) malware
D) cyber spying
E) spyware
Answer: B
Skill: Concept
Difficulty: Easy
47) Which of the following statements is true of viral marketing?

A) Marketers have significant control over where their viral messages end up.
B) Viral marketing gives consumers online places to congregate, socialize, and exchange views.
C) Because customers find and pass along the message, viral marketing can be very
inexpensive.
D) In viral marketing, links appear alongside search engine results on sites such as Google and
Bing.
E) Viral marketing messages are blocked by most search engines, security software, and
social networking sites.
Answer: C
Skill: Concept
48) Which of the following is most likely a disadvantage of viral marketing?

A) Viral marketing usually takes time to make an impact.
B) Viral marketing is very inexpensive.
C) Marketers have great control over who receives the viral message.
D) Viral marketing messages are offensive to the audiences who are not a part of the
targeted market.
E) Viral marketing messages are blocked by most search
engines. Answer: C
Skill: Concept
49) Which of the following is most likely an advantage of viral marketing?
A) Viral marketing reinforces consumers' attitudes about a brand.
B) Most messages are likely to "go viral."
C) Consumers want to be a part of viral marketing.
D) Viral marketing can easily be successfully accomplished.
E) Viral marketing produces engagement and positive exposure for a
brand. Answer: E
Skill: Concept
50) Which of the following is a reason a consumer would follow a company's blog?
A) The blog offers fresh insights or new ideas about the company or products.
B) The blog provides the consumer with familiar information.
C) The blog allows consumers to communicate with each other.
D) A well-followed blog gives the company influence in the marketplace.
E) Consumers know that companies want them to follow the blog postings.
Answer: A
Skill: Concept
Difficulty: Easy
51) are communities over the Internet where people congregate, socialize, and
exchange views and information.
A) Corporate Web sites
B) Interactive television
C) Digital catalogs
D) Online social networks
E) Content sponsorships
Answer: D
Skill: Concept
Difficulty: Easy
52) are online journals where people post their thoughts, usually on a narrowly
defined topic.
A) Social networks
B) Blogs
C) Forums
D) Search engines
E) Web
directories
Answer: B
Skill: Concept
Difficulty: Easy
53) Which of the following is a benefit of using blogs as marketing tools for companies?
A) Blogs provide companies with a platform to help portray wider merchandise.
B) Blogs are online selling platforms for people located in hard-to-reach places.
C) Blogs help reach a wider audience compared to other online direct marketing tools.
D) Demographic information about customers can be easily discovered.
E) Blogs can offer a fresh, original, personal, and cheap way to enter into
consumer conversations.
Answer: E
Skill: Concept
54) Which of the following is a disadvantage of using blogs as a marketing tool?

A) The blogosphere is cluttered and difficult to control.
B) Advertising on a blog is typically expensive and time consuming.
C) Using blogs as a marketing tool offers minimum reach to a target audience.
D) Blogs, when used as a marketing tool, have a low rank in Web directories and
search engines.
E) Blogs do not provide the kind of personalized approach that today's marketers are looking
for.
Answer: A
Skill: Concept
55) While blogs are a fundamentally a consumer-controlled medium, marketers can .
A) directly contact customers through them
B) use insights from them to improve their marketing programs
C) offer special promotions to new customers
D) retrieve research data from clicks in them
E) provide content
Answer: B
Skill: Concept
56) What is a significant issue for social media and for companies using it as a marketing tool?
A) measuring viewership
B) creating content
C) identifying target markets
D) monetizing the tool
E) recognizing effective social media
sites Answer: D
Skill: Concept
57) A marketing Web site interacts with consumers to move them closer to a direct purchase
or other marketing outcome.
Answer: TRUE
Skill: Concept
Difficulty: Easy
58) Branded community Web sites are designed to present brand content that engages
consumers and builds closer customer relationships rather than to sell the company's products
directly.
Answer: TRUE
Skill: Concept
59) Marketers drive traffic to the company Web sites solely through using other online
and digital marketing tools.
Answer: FALSE
Skill: Concept
Difficulty: Easy
60) Online-only companies are more successful than omni-channel marketing companies.
Answer: FALSE
Skill: Concept
Difficulty: Easy
61) Search advertisers buy search terms from the search site and pay whenever the search terms
come up in the results of a consumer's search.
Answer: FALSE
Skill: Concept
Difficulty: Easy
62) Consumers welcome e-mail marketing messages; opportunities to control the

messages they receive are frequently ignored.
Answer: FALSE
Skill: Concept
Difficulty: Easy
63) E-mail can be the ultimate direct marketing tool, as it lets marketers send highly
targeted, tightly personalized, relationship-building messages.
Answer: TRUE
Skill: Concept
Difficulty: Easy
64) Spam is unsolicited, unwanted commercial e-mail messages that clog up users' e-
mailboxes.
Answer: TRUE
Skill: Concept
Difficulty: Easy
65) Viral marketing allows marketers to send tailored messages to targeted customers who
have chosen to receive them.
Answer: FALSE
Skill: Concept
Difficulty: Easy
66) Blogs can be used to appeal to specific special-interest groups, about almost any
topic. Answer: TRUE
Skill: Concept
Difficulty: Easy
67) Provide two reasons why companies are shifting more of their marketing dollars to online
advertising.
Answer: As consumers spend more and more time online, companies are shifting more of their
marketing dollars to online advertising to build brand sales or attract visitors to their Internet,
mobile, and social media sites. The main forms of online advertising are display ads and
search-related ads.
Skill: Concept
Difficulty: Easy
68) Describe the largest form of online advertising.
Answer: The largest form of online advertising is search-related ads, or contextual advertising.
Text- and image-based ads and links appear atop or alongside search engine results on sites
such as Google, Yahoo!, and Bing. A search advertiser buys search terms from the search site
and pays only if consumers click through to its site.
Skill: Concept
Difficulty: Easy
69) Explain the goal of viral marketing.

Answer: Viral marketing is the digital version of word-of-mouth marketing. Viral marketing
involves creating videos, ads, or other marketing content that are so infectious that customers
will want to pass them along to their friends.
Skill: Concept
Difficulty: Easy
70) Explain how a company benefits from monitoring the blogosphere.

Answer: They can offer a fresh, original, personal, and cheap way to enter into consumer
online and social media conversations. Beyond their own brand blogs, many marketers use
third-party blogs to help get their messages out. Marketers can use insights from consumer
online conversations to improve their marketing programs.
Skill: Concept
Difficulty: Easy
71) Identify the major advantage of the following forms of digital and social media
marketing: Web sites, viral marketing, e-mail, blogs, social media, and mobile ads and apps.
Answer: Web sites are designed to engage the customers. Marketing Web sites want to move
them closer to a direct purchase or other marketing outcomes. Branded community Web sites
want to provide content that builds closer customer relationships and generates engagement
with and between the brand and its customers.
Viral marketing can be very inexpensive when customers find and pass along the message or
promotion.
E-mail lets marketers send highly targeted, tightly personalized, relationship-building
messages.
Blogs can offer a fresh, original, personal and cheap way to enter into consumer online and
social media conversations.
Social media first and foremost are targeted and personal.
Mobile ads and apps are used to increase convenience for customers, whether in making a
purchase or accessing information.
Skill: Concept
72) Compare and contrast the purpose and content of a branded community Web site to that of
a marketing Web site.
Answer: Branded community Web sites are designed to present brand content that engages
consumers and builds closer customer relationships, rather than to sell the company's products
directly. Such sites typically offer a rich variety of brand information, videos, blogs, activities,
and other features that build closer customer relationships and generate engagement with and
between the brand and its customers.
In contrast, marketing Web sites are designed to engage consumers in an interaction that will
move them closer to a direct purchase. A marketing Web site allows customers to view,
research, and purchase specific items.
Skill: Concept
73) What are the characteristics of a successful Web site?
Answer: To attract visitors, companies aggressively promote their Web sites in offline print and
broadcast advertising and through ads and links on other sites. The key is to create enough
engaging and valued content to get consumers to come to the site, stick around, and come back
again.
At the very least, a Web site should be easy to use and visually appealing. Ultimately, however,
Web sites must also be USEFUL. When it comes to online browsing and shopping, most
people prefer substance over style and function over flash. Thus, effective Web sites contain
deep and useful information, interactive tools that help find and evaluate content of interest,
links to other related sites, changing promotional offers, and entertaining features that lend
relevant excitement.
Skill: Concept
74) What are the strengths and weaknesses of e-mail marketing?

Answer: E-mail is still the king as 91 percent of all U.S. consumers use e-mail every day, with
65 percent of those opened on mobile devices. E-mail can be 40 times more effective at
capturing customers than Facebook and Twitter combined. Thanks to low costs, e-mail
marketing brings one of the highest marketing returns on investment. It lets marketers send
highly targeted, personalized, relationship-building messages that are colorful, inviting, and
interactive. However, spam has produced consumer irritation and frustration as it now accounts
for 70 percent of all e-mail sent worldwide. Marketers want to add value for consumers but not
be intrusive and annoying.
Skill: Concept
75) Which kind of social media networks are smaller communities likely to join or create?
A) blog
B) niche
C) Internet
D) video
E) commercia
l Answer: B
Skill: Concept
Objective: LO 17.4: Discuss how companies use social media and mobile marketing to engage
consumers and create brand community.
76) Runners can compare performances, set up profiles, meet new people, and share
information on Nike's Nike+ Web site. Nike+ is an example of a(n) .
A) podcast
B) blog
C) online community
D) content sponsorship program
E) kiosk
Answer: C
Skill: Application
77) Which of the following is NOT a reason that companies use social media?
A) cost effectiveness
B) engagement and social sharing capabilities
C) ease of creating content
D) immediacy and timeliness
E) interactiveness
Answer: C
Skill: Concept
78) Which of the following is a challenge of marketing through online social networks?
A) Results are hard to measure.
B) Users seldom have control over the online social networks.
C) Most existing networks are already controlled by major corporations and therefore do not
favor competitors.
D) It is difficult to get the approval of the online advisory board to post an ad in a
social network.
E) Marketing via online social networks is expensive and time-
consuming. Answer: A
Skill: Concept
79) Social media are all of the following EXCEPT .
A) expensive
B) interactive
C) personal
D) targeted
E) timely
Answer: A
Skill: Concept
Difficulty: Easy
80) An integrated social marketing campaign likely could include all of the following EXCEPT
.
A) Facebook pages
B) Twitter postings
C) Instagram photos
D) television ads
E) YouTube
videos Answer: D
Skill: Concept
Difficulty: Easy
81) marketing features marketing messages and promotions delivered to on-the-go

consumers through their handheld devices.
A) Kiosk
B) Ambush
C) Direct-mail
D) Mobile
E) Catalog
Answer: D
Skill: Concept
Difficulty: Easy
82) Mobile marketing is used to enrich the brand experience, stimulate immediate buying, or
.
A) decrease advertising costs
B) help friends contact friends
C) make shopping easier
D) create new customer relationships
E) find new suppliers
Answer: C
Skill: Concept
83) Joanna uses her smartphone to accomplish many tasks everyday. She is also an
avid shopper. Which online marketing tool will benefit Joanna the most to help her
shop?
A) e-mail messages from sites to which she subscribes
B) banking app for her bank
C) instant deals and digital coupons
D) YouTube video
E) Facebook friends
Answer: C
Skill: Application
84) Kirk's Comic Store has its own mobile app that users can download for free. The app
lets users know about special events, discounts, and merchandise currently available in the
store. Which of the following forms of marketing is exemplified from this scenario?
A) social media marketing
B) kiosk marketing
C) direct-response television marketing
D) mobile marketing
E) direct-mail
marketing Answer: D
Skill: Application
Difficulty: Easy
85) James is looking for a new suit for a job interview. He is shopping at Smith & Jones, a
well-regarded menswear store. While he looks at various styles and uses his smartphone to
scan codes, the menswear shopping app provides him with suggestions for shirts, ties, and
shoes that would complete the ensemble he needs to make a strong, positive impact at his
interview. The ability of the app to provide this information serves to .
A) enrich the shopping experience
B) annoy James
C) complicate the shopping experience
D) use James' data plan
E) interrupt the shopping experience
Answer: A
Skill: Concept
Difficulty: Easy
86) Social media marketing can be inexpensive for companies to use.

Answer: TRUE
Skill: Concept
Difficulty: Easy
87) Social media sites primarily exist for broad topics, making it difficult for marketers
to appeal to smaller communities and niche markets.
Answer: FALSE
Skill: Concept
Difficulty: Easy
88) While many consumers welcome the convenience that mobile marketing ads
offer, marketers still must be smart about how they engage people on mobile devices.
Answer: TRUE
Skill: Concept
Difficulty: Easy
89) Describe how marketers can engage in social media.
Answer: Marketers can engage in social media in two ways: They can use existing social
media or they can set up their own. Using existing social media seems easiest, but many
companies have also created their own online brand communities.
Skill: Concept
Difficulty: Easy
90) Explain integrated social media marketing.

Answer: Companies that use social media successfully are integrating a broad range of diverse
media to create brand-related social sharing, engagement, and customer community. They
design full-scale social media efforts that blend with and support other elements of a brand's
marketing strategy and tactics.
Skill: Concept
Difficulty: Easy
91) Describe two ways that marketers can participate in online social networks. What are
the challenges and advantages of these approaches?
Answer: Marketers can engage in social media in two ways: They can use existing social
media or they can set up their own. Using existing social media seems the easiest. Thus, many
brands now use a host of social media sites. Although large social media networks are most
familiar, countless niche social media have also emerged. Niche online social networks cater to
the needs of smaller communities of likeminded people, making them ideal vehicles for
marketers who want to target special interest groups. Beyond these independent social media,
many companies have created their own online brand communities.
Using social media presents both advantages and challenges. On the plus side, social media are
targeted and personal, interactive, immediate and timely. Social media can be very cost
effective. Perhaps the biggest advantage of social media is their engagement and social sharing
capabilities. Social media are especially well suited to creating customer engagement and
community—for getting customers involved with the brand and with each other.
Social media marketing also present challenges. First, many companies are still experimenting
with how to use them effectively, and results are hard to measure. Second, such social
networks are largely user controlled. The company's goal in using social media is to make the
brand a part of consumers' conversations and their lives. However, marketers must become a
valued part of the online experience by developing a steady flow of engaging content.
Skill: Concept
92) Explain the strengths of mobile marketing from the marketer's point of view.
Answer: Companies can use mobile marketing to stimulate immediate buying, make shopping
easier, enrich the brand experience, or all of these. It lets marketers provide consumers with
information, incentives, and choices at the moment they are expressing an interest or when they
are in a position to make a buying choice. The rich-media ads can create substantial
engagement and impact. They can enrich the brand experience by providing information or
even entertainment. They can target "anytime, anywhere, and everywhere."
Skill: Concept
93) involves sending an offer, announcement, reminder, or other item to a person at

a particular address.
A) Kiosk marketing
B) Online marketing
C) Ambush marketing
D) Direct-mail marketing
E) Telemarketin
g Answer: D
Skill: Concept
Objective: LO 17.5: Identify and discuss the traditional direct marketing forms and overview
public policy and ethical issues presented by direct marketing.
Difficulty: Easy
94) All of the following are forms of traditional direct marketing EXCEPT .
A) face-to-face selling
C) telemarketing
D) direct-mail marketing
E) kiosk
marketing
Answer: B
Skill: Concept
Difficulty: Easy
95) Which of the following types of marketing involves sending out letters, brochures,
samples, and DVDs to consumers' addresses?
A) direct-response marketing
B) direct-mail marketing
C) direct digital marketing
D) kiosk marketing
E) online
marketing Answer:
B
Skill: Concept
Difficulty: Easy
96) Why does direct-mail marketing most likely remain a popular promotional tool for
marketers?
A) It does not disturb consumers enrolled in the Do Not Call Registry.
B) It provides something tangible for people to keep.
C) It builds long-term customer relationships.
D) It involves very low marketing costs.
E) It reaches the consumer very
quickly. Answer: B
Skill: Concept
97) SparkClean is a company that specializes in producing cleaning products for automobiles.
In order to promote its products, SparkClean sends a complimentary sample of its products to
auto enthusiasts. Which form of marketing is SparkClean involved in?
A) online marketing
B) viral marketing
C) telemarketing
D) kiosk marketing
E) direct-mail
marketing Answer: E
Skill: Application
98) Fiona Lambrech is the marketing director of a newly established detergent company. In
order to introduce her product effectively into the market, Fiona sends samples of the
detergent to a select group of individuals. Which of the following forms of marketing was
most likely used by Fiona?
A) direct-mail marketing
B) catalog marketing
C) telephone marketing
D) kiosk marketing
E) direct-response television
marketing Answer: A
Skill: Application
99) While shopping at KelfanDesigns.com, Shelly came across a checkbox beside which a
statement said, "I want to receive promotional offers from KelfanDesigns.com." Which of
the following types of marketing is illustrated in this example?
A) telemarketing
B) viral marketing
C) direct response television marketing
D) contextual advertising
E) permission-based e-mail
marketing Answer: E
Skill: Application
100) Which of the following is an advantage of using digital catalogs?

A) lists the phone numbers of interested prospects
B) coordinates with direct-response television ads
C) points customers to the nearest kiosk
D) eliminates printing and mailing costs
E) creates emotional contact with
customers Answer: D
Skill: Concept
101) What is the primary advantage of printed catalogs?
A) filtering out interested prospects
B) offering immediate rebates and coupons
C) building emotional connections with customers
D) offering unlimited space for merchandise details
E) reaching consumers in a quick and inexpensive
manner Answer: C
Skill: Concept
102) Digital catalogs offer all of the following benefits EXCEPT .

A) presenting an almost unlimited amount of merchandise
B) offering a broad assortment of presentation formats, including search and video
C) adding and removing products as needed
D) adjusting prices instantly to meet demand
E) touching the product
Answer: E
Skill: Concept
103) Why are historically online shops such as Zappos.com adding catalogs to their
marketing methods?
A) to meet the increased demand in print catalogs
B) to reduce the costs involved in online marketing
C) to connect with customers in hard-to-reach places
D) to drive online sales and services
E) to reduce the need for
telemarketers Answer: D
Skill: Concept
Difficulty: Easy
104) Which of the following is a major form of direct-response television marketing?
A) telemarketing
B) interactive TV
C) social media
D) digital catalog
E) podcast
Answer: B
Skill: Concept
Difficulty: Easy
105) In building a connection to customers through catalogs, marketers want to .

A) offer a new brand experience
B) inspire and engage
C) create word-of-mouth advertising
D) develop a viral following
E) perform marketing research
Answer: B
Skill: Concept
Difficulty: Easy
106) Sales executives at Keiron Air Conditioners use phone directories to call customers
and convince them to buy their air conditioners. Which form of direct marketing is used
here?
A) telemarketing
B) direct-mail marketing
C) catalog marketing
D) direct-response television marketing
E) kiosk
marketing
Answer: A
Skill: Application
107) Which of the following is an advantage of a well-designed and targeted
telemarketing plan?
A) exemption from the National Do Not Call Registry
B) ability to portray wider merchandise
C) purchasing convenience for customers
D) interactive infomercials via phone
E) coordination with nearby kiosks
Answer: C
Skill: Concept
108) Geller Insurance calls qualified prospects to sell insurance. Which of the following
forms of marketing is evident from this example?
A) catalog marketing
B) kiosk marketing
C) direct-response television marketing
D) telemarketing
E) direct-mail
marketing Answer: D
Skill: Application
109) Marketers publicize inbound toll-free numbers to consumers in television and print ads,
direct mail, and catalogs. The benefit to sellers is that it presents an opportunity for
consumers to order products and for the seller to build the relationship. A benefit to
consumers is
.
A) increased convenience
B) increased telemarketing calls
C) decreased telemarketing calls
D) 24/7 availability of support
E) a discounted price on the product
Answer: A
Skill: Concept
Difficulty: Easy
110) By using to contact potential customers, marketers sell directly to consumers.
A) undercover marketing
B) outbound telephone marketing
C) affinity marketing
D) multi-level marketing
E) ambush
marketing Answer: B
Skill: Concept
111) How has do-not-call legislation helped direct marketers?

A) Marketers are compensated by the Federal Trade Commission for lost sales caused by
the laws.
B) Direct marketers have outsourced their activities to firms that are exempt from such laws.
C) Direct marketers have developed kiosks as an alternative to telemarketing.
D) Telemarketers are allowed to call customers for a small fee.
E) Telemarketers have developed opt-in calling systems that target consumers who have
chosen to be contacted and therefore are less invasive.
Answer: E
Skill: Concept
112) Neal Murphy sells his company's unique products on television programs. He hosts a 30-
minute show in which he demonstrates and explains the advantages of the product. At the end
of the show, a toll-free number is displayed on the screen that can be used by viewers to place
their orders for the product. Which of the following forms of advertising is evident here?
A) direct-response television advertising
B) telemarketing
C) interactive television marketing
D) podcast marketing
E) kiosk
marketing
Answer: A
Skill: Application
113) Which of the following terms refers to a 30-minute television advertising program
that markets a single product?
A) social media
B) digital catalog
C) telemarketing
D) blog
E) infomercial
Answer: E
Skill: Concept
Difficulty: Easy
114) Donello Equipment hosts infomercials on television and at the same time allows its
viewers to interact with its advertisements. Viewers can request more details and order via
their Internet-ready smart televisions. Which of the following forms of marketing is evident
here?
A) catalog marketing
B) telemarketing
C) interactive television
E) kiosk
marketing
Answer: C
Skill: Application
115) allows consumers to gain additional information about a product through the
use of a remote control.
A) Telemarketing
B) Kiosk marketing
C) Podcasting
D) Video conferencing
E) Interactive television
Answer: E
Skill: Concept
Difficulty: Easy
116) Even large companies use infomercials for all the following reasons EXCEPT to
.
A) recruit members
B) refer customers to retailers
C) attract buyers to online, mobile, and social media sites
D) introduce new advertising campaigns
E) sell their products
Answer: D
Skill: Concept
Difficulty: Easy
117) What is the most likely reason that direct-response television marketing has increased in
recent years?
A) uses of social media
B) shifts in demographics
C) increases in global demand
D) changes in FTC legislation
E) advances in technology
Answer: E
Skill: Concept
118) Using interactive TV can allow consumers to perform all the following tasks during
a company's ad EXCEPT .
A) see what other sizes or colors are available
B) identify a nearby location at which the product is available
C) access additional product information
D) order the product
E) send product information to another device
Answer: B
Skill: Concept
119) Which term refers to an in-store machine that allows a customer to order merchandise not
carried in the store?
A) kiosk
B) automated teller machine
C) virtual catalog
D) interactive TV
E) direct-response device
Answer: A
Skill: Concept
Difficulty: Easy
120) Green Gardens is a click-and-mortar company that sells gardening and landscaping goods
and equipment. When customers are unable to find a product they need on the shelves of their
local Green Gardens store, customers order the product online with the help of the in-store
ordering machine. Which of the following best describes the ordering machine?
A) kiosk
B) digital catalog
C) podcast
D) tablet
E) online networks
Answer: A
Skill: Application
121) Marbles Inc. has placed vending machines in most of its retail stores in Florida.
Consumers can order a pack of marbles by just selecting their requirements on the touch screen.
Which term best describes such machines?
A) POP
B) kiosk
C) virtual catalog
D) interactive television
E) automated teller
machine Answer: B
Skill: Concept
Difficulty: Easy
122) Music Mogul has arrangements with several stores and retail chains to place their DVDs
and digital music machines in prime spots such as near billing counters and at store entrances.
Consumers can buy DVDs by depositing payment or they can buy music online via the
touchscreen interface on the machine. Which form of marketing is illustrated in this scenario?
A) direct-response television advertising
B) telemarketing
C) interactive television
E) kiosk
marketing
Answer: E
Skill: Application
123) Charlie Putnam received an e-mail promoting a new financial services institution that
offers surprisingly low mortgage rates. The e-mail simply asked customers to provide
their address, date of birth, social security number, and current mortgage information in
order to receive a free loan quote. Suspicious of the offer, Charlie researched the company
and discovered that the e-mail was a fraud. This is an example of .
A) cyberbullying
B) phishing
C) adware
D) spamdexing
E) viral
marketing
Answer: B
Skill: Application
124) Buyers with low sales resistance can often be tempted by all the following
common features of infomercials EXCEPT .
A) elaborately staged demonstrations
B) "while they last" time limitations
C) free shipping
D) smooth-talking hosts
E) claims of drastic price
reductions Answer: C
Skill: Concept
Difficulty: Easy
125) Josh received an e-mail stating that he had won a lottery of $500,000 from Lottors
Corporation. The e-mail asked Josh to send his bank account details and social security number
to transfer cash directly to his account. Josh did not remember buying any lottery tickets, and so
was apprehensive about providing his bank details without verification. Which of the following
is illustrated from this scenario?
A) adware
B) viral marketing
C) telemarketing
D) cyberbullying
E) phishing
Answer: E
Skill: Application
126) Which of the following is a type of identity theft that uses deceptive e-mails and
fraudulent Web sites to fool consumers into revealing their personal data?
A) bait-and-switch
B) cyber spying
C) viral marketing
D) phishing
E) spam
Answer: D
Skill: Concept
Difficulty: Easy
127) All of the following are Internet marketing concerns EXCEPT .

A) financial scams
B) access by vulnerable or unauthorized groups
C) phishing
D) identity theft
E) secure online and digital Web
sites Answer: E
Skill: Concept
128) What action do consumers continue to perform even though a majority are concerned with
identify theft?
A) shopping online
B) searching for product information
C) reading reviews from friends on Facebook
D) sending and responding to e-mail messages
E) watching
videos Answer: A
Skill: Concept
Difficulty: Easy
129) Consumers' names and additional information likely become part of whenever
they enter a sweepstakes, apply for a credit card, visit a Web site, or send a tweet.
A) other consumers' contact lists
B) telemarketers' lists
C) their computer's cookie history
D) a company's database
E) the FTC's surveys regarding online privacy
Answer: D
Skill: Concept
Difficulty: Easy
130) To decrease direct marketing abuses, government agencies are investigating do-not-
call lists, do-not-mail lists, do-not-track-online lists, and .
A) claimed fraudulent credit card charges
B) Can Spam legislation
C) possibly deceptive television advertising
D) offerings of illegal products
E) bait-and-switch
offers Answer: B
Skill: Concept
131) To enable customers to opt out of seeing particular ads, marketers use a(n) .
This is added to behaviorally targeted online ads to tell consumers why they are seeing a
particular ad.
A) advertising option icon
B) opt-in question
C) X to close the ad
D) survey
E) questionnaire
Answer: A
Skill: Concept
Difficulty: Easy
132) Which of the following acts requires that Web site operators obtain parental
consent before collecting personal information about children under the age of 13?
A) Safe Children's Act of 2001
B) Children's Online Privacy Protection Act
C) Children's Online Protection Act
D) Adam Walsh Child Protection and Safety Act
E) Children's Act for Responsible
Employment Answer: B
Skill: Concept
Difficulty: Easy
133) TRUSTe, a nonprofit self-regulatory organization, works with other companies to

audit online privacy and security measures. It lends its TRUSTe privacy seal to all the
following communication channels that meet its privacy and security standards EXCEPT .
A) mobile apps
B) e-mail marketing
C) telemarketing
D) Web sites
E) social
media Answer:
C
Skill: Concept
Difficulty: Easy
134) The was established by the Direct Marketing Association.
A) Privacy Promise to American Consumers
B) Trusted Email Open Standard
C) Children's Online Privacy Protection Act
D) CAN-SPAM legislation
E) Do Not Call Registry
Answer: A
Skill: Concept
Difficulty: Easy
135) According to the "Privacy Promise to American Consumers" program, DMA

members need to comply with which of the following consumer privacy rules?
A) agree to notify customers when any personal information is rented, sold, or exchanged with
others
B) offer to register all customers in the National Do Not Call Registry
C) make sure that consumers are adhering to the Children's Online Privacy Protection Act
D) educate consumers on the Can Spam legislation
E) include the advertising option icon to let consumers know why they are being
targeted Answer: A
Skill: Concept
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature.
In recent years, owner Gary Zahn has served as the local representative of several musical
instrument manufacturers, providing a contact person for three local schools. He sends a sample
of a manufacturer's products to schools that request a demonstration or presentation. "If we
don't have it, we can definitely get it for you," Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a particular era
or just browsing among the hundreds of music knick-knacks in the store. Gary spends most of
his time making presentations to beginners at the local schools and making biweekly visits to
the schools to deliver instruments, make minor repairs, or pick up instruments to ship to the
manufacturer for more complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could
benefit a variety of customers. He began with a simple Web site that provided information
about the store and the types of gifts and services available. The site received so much response
that Gary added a question-and-answer option. Questions poured in, ranging from "Where can I
get sheet music for 'Hello, Dolly'?" to "Do you carry clarinet reeds?" to "My saxophone needs
two new pads. When will you be at Elmhurst School to repair it?" The Web site is now able to
accept credit card orders, and gifts can even be wrapped and shipped for no extra charge.
"This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our
novelties sales have doubled!"
136) Gary sends samples of sheet music to schools for demonstration or presentation. Which
of the following types of marketing is being illustrated from this statement?
A) kiosk marketing
B) viral marketing
C) direct-mail marketing
D) telemarketing
E) direct-response television
marketing Answer: C
Skill: Application
137) In addition to sending samples of sheet music to schools, Gary sends school music
directors messages with links to sample digital clips of the compositions. What kind of
marketing is this?
A) e-mail marketing
B) viral marketing
C) kiosk marketing
D) mobile marketing
E) catalog
marketing Answer:
A
Skill: Application
138) Gary wants to expand the reach of his business. An effective approach to reaching the
most likely potential customers would be marketing. The message will include a link
to Treble Clef's Web site.
A) e-mail
B) viral
C) kiosk
D) mobile
E) catalog
Answer: A
Skill: Application
139) Digital catalogs eliminate printing and mailing costs.

Answer: TRUE
Skill: Concept
Difficulty: Easy
140) Telemarketing is especially effective for business-to-business

marketers. Answer: TRUE
Skill: Concept
Difficulty: Easy
141) With outbound telephone marketing, the company provides a toll-free phone number
to receive orders from television ads, print ads, direct mail, and catalogs.
Answer: FALSE
Skill: Concept
Difficulty: Easy
142) Interactive TV (iTV) lets viewers interact with television programming and
advertising. Answer: TRUE
Skill: Concept
Difficulty: Easy
143) You receive a text message on your phone from Upscale Furnishings about an upcoming
sale on custom furniture. Upscale Furnishings is developing a direct customer relationship with
you through kiosk marketing.
Answer: FALSE
Skill: Application
144) Kiosk marketing connects users around the world to each other and to an amazingly
large information repository.
Answer: FALSE
Skill: Concept
Difficulty: Easy
145) Kiosk marketing features marketing messages and promotions delivered to on-the-go
consumers through their mobile devices.
Answer: FALSE
Skill: Concept
Difficulty: Easy
146) One common form of Internet fraud is phishing, a type of identity theft that uses deceptive
e-mails and fraudulent online sites to fool users into divulging personal data.
Answer: TRUE
Skill: Concept
Difficulty: Easy
147) Because of strict consumer privacy regulations, invasion of privacy is no longer a concern
for the direct marketing industry.
Answer: FALSE
Skill: Concept
Difficulty: Easy
148) The Children's Online Privacy Protection Act requires online operators targeting children
to post privacy policies on their sites and notify parents about any information they are
gathering and obtain parental consent before collecting information from children under age 13.
Answer: TRUE
Skill: Concept
Difficulty: Easy
149) Why are people that are reached by direct mail better prospects for a company than those
reached by mass media such as television or magazines?
Answer: Unlike mass media, direct mail allows for high target-market selectivity, so only
consumers who are likely to become customers can be contacted; in addition, direct mail can be
personalized for each individual, which helps to build customer relationships.
Skill: Concept
Difficulty: Easy
150) Why are printed catalogs still thriving in the face of the growing popularity of Web-
based catalogs?
Answer: Printed catalogs are more effective at creating an emotional connection with
customers and continue to be one of the best ways to drive online sales.
Skill: Concept
Difficulty: Easy
151) Explain how the creation of the National Do Not Call Registry may have helped
telemarketers more than it hurt them.
Answer: Rather than making unwanted calls, many of these marketers are developing "opt-in"
calling systems, in which they provide useful information and offers to customers who have
invited the company to contact them by phone or e-mail. The opt-in model provides better
returns for marketers than the formerly invasive one.
Skill: Concept
Difficulty: Easy
152) Why is the use of direct-response television growing in popularity?

Answer: Direct-response television (DRTV) marketing takes one of two major forms: direct-
response television advertising and interactive TV (iTV) advertising. Using direct-response
television advertising, direct marketers air television spots, often 60 or 120 seconds in length,
which persuasively describe a product and give customers a toll-free number or a Web site for
ordering. It also includes full 30-minute or longer advertising programs, called infomercials, for
a single product. Successful direct-response advertising campaigns can ring up big sales.
Interactive TV (iTV) lets viewers interact with television programming and advertising. Thanks
to technologies such as interactive cable systems, Internet-ready smart TVs, and smartphones
and tablets, consumers can now use their TV remotes, phones, or other devices to obtain more
information or make purchases directly from TV ads. Interactive ads and infomercials are
appearing not just on TV, but also on mobile, online, and social media platforms, adding even
more TV-like interactive direct marketing venues.
Skill: Concept
Difficulty: Easy
153) Provide an example of how a marketer uses kiosk marketing.
Answer: Students' answers will vary. Many airlines and hotels use kiosks as self-service check-
in devices; many retail stores offer in-store ordering kiosks.
Skill: Application
Difficulty: Easy
154) How can firms that use new direct marketing technologies avoid backlash from consumers
who view such marketing as an invasion of privacy?
Answer: Marketers should always target their direct marketing offers carefully and bring real
value to customers through direct marketing. Firms can opt for database marketing so that
consumers receive offers that closely match their interests. Using sophisticated computer
technologies, direct marketers can mine these databases to "microtarget" their selling efforts.
Most marketers have become highly skilled at collecting and analyzing detailed consumer
information.
Skill: Concept
Difficulty: Easy
155) How has the direct marketing industry taken steps to address privacy and security
concerns?
Answer: Some companies use a nonprofit self-regulatory organization that audits a company's
security and privacy measures and then approves Web sites, mobile apps, e-mail marketing and
other online and social media channels that meet its privacy and security standards. The Direct
Marketing Association launched a Privacy Promise that asks member companies to agree to
notify customers when any personal information is rented, sold, or exchanged with others. They
must also honor customer requests to opt-out of receiving further solicitations or having their
contact information transferred to other marketers. Finally, they must abide by the DMA's
Preference Service by removing the names of consumers who do not wish to receive mail,
phone, or e-mail offers.
Skill: Concept
Difficulty: Easy
156) Identify the major advantage of the following traditional forms of direct marketing:
telephone, direct mail, catalog, direct-response television, and kiosk.
Answer: Telephone marketing provides purchasing convenience and increased product and
service information.
Direct-mail marketing permits selectivity and personalization.
Paper catalogs create emotional connections with customers that digital sales spaces can't, and
through online catalogs, marketers can use real-time merchandising, adding or removing
products based on their availability.
Direct-response television marketing allows live demonstrations without salespeople having to
visit buyers' homes or businesses.
Kiosk marketing places information and ordering machines in convenient places, such as
airports, stores, and malls.
Skill: Concept
157) How has the implementation of the National Do Not Call Registry changed
telephone marketing?
Answer: The National Do Not Call Registry was created by legislation, passed in 2003; it bans
most business telemarketing calls to registered phone numbers. However, people can still
receive calls from nonprofit groups, politicians, and companies with which they have recently
done business. Millions of customers have joined the do-not-call list, and businesses that break
the laws can be fined heavily. The use of unsolicited outbound telemarketing has greatly
decreased due to the law, but inbound consumer telemarketing and outbound business-to-
business telemarketing remain strong and growing. Many telemarketers are shifting their call-
center activity from making unsolicited cold calls on often resentful customers to managing
existing customer relationships. They are developing "opt-in" calling systems, in which they
provide useful information and offers to customers who have invited the company to contact
them by phone or e-mail.
Skill: Concept
158) Internet marketing practices have raised a number of ethical and legal questions. Why is
invasion of privacy perhaps the number one online marketing concern?
Answer: Web site activities provide extensive personal information. This may leave consumers
open to information abuse if companies make unauthorized use of the information in marketing
their products or exchanging databases with other companies. Critics worry that through
database marketing, marketers know too much about consumers' lives and may not use that
information responsibly, taking unfair advantage of consumers.
AACSB: Ethical understanding and reasoning Skill:
Concept

Chapter 12 - 17 PMK Quiz 4

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logistics involves moving products from the factory to resellers and ultimately to

customersPrinciples of Marketing, 17e (Kotler/Armstrong)

1) Producing a product or service and making it available to buyers requires building

5) The term demand chain is considered limited because it .

8) play an important role in matching supply and demand by providing consumers

17) Which of the following companies uses a direct marketing channel?

21) Which of the following is an example of an indirect marketing channel?

24) Which of the following is a conventional consumer marketing channel?

Refer to the scenario below to answer the following question(s).

26) Which of the following is Giant Beanstalks' upstream partner?

37) How do intermediaries add value to a marketing system?

40) Which of the following does NOT apply to channel systems?

41) Which of the following is true of channel members?

47) Conflict in the channel can be healthy because .

49) Which of the following is true of conventional distribution channels?

52) Which of the following is a major type of vertical marketing system?

55) The organization is the most common type of contractual relationship.

56) Ford and its network of independent franchised dealers is an example of a .

58) In a(n) , leadership is assumed not through common ownership or contractual

59) VMS is a vertical marketing system that coordinates successive stages of

67) Which of the following is a disadvantage of adding new channels in a multichannel

74) A conventional distribution channel consists of one or more independent producers,

75) A non-corporate VMS integrates successive stages of production and distribution

79) What is vertical conflict? Illustrate your answer with an example.

80) What is a conventional distribution channel?

81) Explain power in a vertical marketing system.

84) Give an example of a multichannel distribution system.

93) distribution is a strategy in which producers of convenience products and

Refer to the scenario below to answer the following question(s).

103) What distribution strategy does Giant Beanstalks use?

119) A strategy of exclusive dealing is most likely considered legal if .

125) What factors should a firm consider when selecting intermediaries?

126) When would an exclusive dealing contract be legally problematic?

128) Evaluate how public policy affects distribution decisions.

131) Marketing logistics includes all of the following EXCEPT .

136) management refers to the management of upstream and downstream value-

137) Which of the following is NOT a major logistics function?

139) Major logistics functions are logistics information management, inventory

142) Which of the following is true of using trucks as a transportation mode?

143) Which of the following is true of transporting goods via railroads?

152) management is the logistics concept that emphasizes teamwork—both inside

155) What distribution strategy does Kimberly's Crown use?

161) Environmental sustainability is an important factor in supplier selection and

164) Intermodal transportation refers to the combination of two or more modes of

166) How can a company benefit through a just-in-time logistics system?

167) What does the concept of integrated logistics management advocate?

Principles of Marketing, 17e (Kotler/Armstrong)

2) Many institutions, including retailers, wholesalers, and do retailing.

5) creates a seamless cross-channel buying experience that integrates in-store, online,

14) Specialty stores carry with within them.

21) Home Depot and PetSmart are examples of .

27) Which of the following is NOT a type of off-price retailer?

32) A is a wholesaler-sponsored group of independent retailers that engages in group

33) McDonald's, Subway, and Jiffy Lube are all examples of .

35) Sears, Target, and Kroger are examples of .

38) Stop-N-Go , 7-Eleven, and Circle K are examples of .

41) Indiana Wood can be best classified as a(n) .

57) A voluntary chain is a wholesaler-sponsored group of independent retailers that engages

61) Compare and contrast specialty stores and convenience stores.