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1. All of the following are considered to be new rules for sellers on the Internet EXCEPT: (choose the least likely)

a. charge lower prices, reap higher margins.

b. charge higher prices, expand product selection, and target minorities.

c. monitor consumer behavior and tailor offers to individuals.

d. change prices on the fly according to changes in demand or costs.

2. When a company sets a price for a new product on the basis of what it thinks the product should cost, then develops estimates on what each component should cost to meet the proposed price with an acceptable profit margin, the company is practicing:

a. predatory pricing.

b. target costing.

c. strategic pricing.

d. low cost leadership.

3. Gibson Guitar Company is perceived as being a prestigious goods manufacturer by its customers. Because of this, Gibson often finds that its demand curve for its prestigious products is:

a. upward sloping.

b. downward sloping.

c. flat.

d. S-shaped.

4. A firm that bases its price on how it thinks the competition will price, rather than on its own costs or demand, in order to win a contract is most likely using:

a. cost-plus pricing.

b. break-even pricing.

c. sealed-bid pricing.

d. going-rate pricing.

5. When products have related demand and costs and face different degrees of competition, ______is often used.

a. product mix pricing

b. promotion mix pricing

c. market-unit pricing

d. market-demand pricing

6. Selling season tickets for less than the cost of the tickets, if bought separately for each game, is a form of:

a. product-bundle pricing.

b. optimal-product pricing.

c. captive-product pricing.

d. by-product pricing.

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7. Which of the following statements is TRUE about the legal status of quantity discounts?

a. In general, most quantity discounts are illegal.

b. Quantity discounts, because they encourage competition, may be applied in any manner agreed upon by the buyer and seller.

c. Quantity discounts encourage buyers to buy from more than one source since the concept of quantity discounts is based on the number of distributors used.

d. Quantity discounts must be offered equally to all customers and must not exceed the seller's cost savings associated with selling large quantities.

8. All of the following are considerations in deciding how to respond to a competitor's price change EXCEPT: (pick the least likely)

a. product's stage in the life cycle.

b. product's importance in the company's product mix.

c. the consumer price index.

d. the intentions and resources of the competitor.

9. With respect to the key functions performed by marketing channels, ______is the shaping and fitting the offer to the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.

a. information

b. risk taking

c. matching

d. negotiation

10. If Chicago Ford dealers complain that other area Ford dealerships are stealing customers from outside their designated trade area, ______would be occurring within a channel of distribution.

a. parallel conflict

b. system conflict

c. horizontal conflict

d. vertical conflict

11. The type of franchise operation used by the automobile industry is a:

a. service-firm sponsored franchise system.

b. manufacturer-sponsored retailer franchise system.

c. manufacturer-sponsored wholesaler franchise system.

d. service-firm sponsored direct channel franchise system.

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12. When selecting intermediaries, a company should determine what characteristics distinguish the better ones. All of the following are significant areas to explore EXCEPT: (choose the least important)

a. channel member's years in business.

b. unionization.

c. growth and profit record.

d. co-operativeness.

13. If a company wants to build a good "corporate image," they will probably use which of the following marketing communications mix tools?

a. Advertising.

b. Public relations.

c. Direct marketing.

d. Sales promotion.

14. In modern communication strategy, the concept that attempts to integrate and coordinate all a company's images and messages is called:

a. direct marketing.

b. the promotion mix.

c. the marketing mix.

d. integrated marketing communications.

15. Achieving name recognition is often the goal of marketing communication in which of the following buyer-readiness stages?

a. Awareness.

b. Knowledge.

c. Liking.

d. Preference.

16. The promotion tool that may include coupons, contests, premiums, and other means of attracting consumer attention is best described as being which of the following?

a. Advertising.

b. Personal selling.

c. Public relations.

d. Sales promotion.

17. In a ______, the strategic positions of competitors in given geographic or national markets are affected by their overall global positions.

a. global industry

b. domestic industry

c. protected industry

d. national industry

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18. Japan has just ruled that, since its snow is different from anywhere else in the world, all foreign-made ski equipment must be tested in Japan before it can be sold to Japanese skiers. This would be an example of which of the following forms of restrictions?

a. Quotas.

b. Tariffs.

c. Exchange controls.

d. Nontariff trade barriers.

19. Groups of nations organized to work toward common goals in the regulation of international trade are called:

a. economic communities.

b. multinationals.

c. bi-lateral negotiators.

d. reciprocal partners.

20. The varied manufacturing activities and a large middle class is typical of which of the following industrial structures?

a. Raw-material exporting economies.

b. Industrializing economies.

c. Industrial economies.

d. Subsistence economies.

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1. b

Marketing Highlight 10.1

Page Ref.: 372,373

Chapter: 10 Question: 9

2. b

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Chapter: 10 Question: 26

3. a

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Chapter: 10 Question: 54

4. c

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Chapter: 10 Question: 89

5. a

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6. a

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7. d

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Chapter: 11 Question: 41

8. c

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Chapter: 11 Question: 88

9. c

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Chapter: 12 Question: 12

10. c

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Chapter: 12 Question: 30

11. b

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12. b

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13. b

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14. d

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15. a

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16. d

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17. a

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Chapter: 19 Question: 14

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18. d

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19. a

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20. c

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Chapter: 19 Question: 63