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

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

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

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

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

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

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

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

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?

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

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.

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

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

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

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

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

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

A) Fish Hooks, a factory that manufactures fishing equipment that it ships to hobby stores
worldwide

B) Germ Fight, 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
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) consumer

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

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
AACSB: Application of knowledge

Skill: Application

Objective: LO 12.1: Explain why companies use marketing channels and discuss the
functions these channels perform.

Difficulty: Moderate

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

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

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

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

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

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

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.

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.

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

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

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

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

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

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

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) multi tiered supply chain

B) conventional distribution channel

C) intrinsic market matrix

D) resource bank

E) product platform

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.

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

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.

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

A) corporate

B) conventional

C) multilevel

D) intrinsic

E) extrinsic

53) A ________ VMS integrates successive stages of production and distribution under
single ownership.

A) contractual

B) contingency

C) corporate

D) conventional

E) communal

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

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

A) franchise

B) horizontal

C) conventional

D) multinational

E) entrepreneurial

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

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

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

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) Administered

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

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

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

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

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

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

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

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

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) Multi Channelization

C) Disintermediation

D) Inclusive distribution

E) Cross merchandising

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

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) Disintermediation

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

A) schools

B) government agencies

C) factory farmers

D) manufacturers

E) defense contractors

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

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) Segmentation

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

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

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

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
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

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

B) limited-service retailer

C) full-service retailer

D) independent retailer

E) off-price retailer

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
________.

A) full-service retailer

B) limited-service retailer

C) self-service retailer

D) specialty store

E) superstore
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

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

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

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

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

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
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.

A) convenience store

B) chain store

C) department store

D) supermarket

E) specialty store

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

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
21) Home Depot and PetSmart are examples of ________.

A) factory outlets

B) warehouse clubs

C) superstores

D) off-price retailers

E) category killers

22) Which of the following would be considered a service retailer?

A) factory outlets

B) supermarkets

C) jewelry stores

D) restaurants

E) gas stations

23) ________ retailers in the United States are growing faster than product retailers.

A) Discount

B) Merchant

C) Service

D) Specialty

E) Off-price

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

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

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) supercenters

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

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

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

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

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

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

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

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

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

A) voluntary chains

B) retailer cooperatives

C) corporate chains

D) franchise organizations

E) warehouse clubs

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

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

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) supermarkets

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?
A) convenience store

B) supermarket

C) specialty store

D) warehouse club

E) factory outlet

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

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

A) full-service retailer

B) industrial distributor

C) self-service retailer

D) warehouse club

E) limited-service retailer

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

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

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

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

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

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
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

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

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
9) Which major promotion category uses catalogs, direct mail, e-mail, mobile marketing and
social media?

A) sales promotion

B) direct and digital marketing

C) horizontal diversification

D) public relations

E) advertising

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

B) direct and digital marketing

C) advertising

D) public relations

E) horizontal diversification

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

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

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

B) direct and digital marketing

C) the Internet

D) personal selling

E) public relations

19) Which of the following statements is true regarding today's marketing communications?

A) More marketers are shifting away from narrowly defined micro markets 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.

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

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

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

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.

24) Of the various digital marketing categories, ________ account(s) for most of the
spending in this category.

A) blogs

B) e-mail

C) social media

D) mobile

E) brand sites

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

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

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

28) Which of the following is an effect of the advancement of technology on marketing?

A) Fragmented markets have assimilated into a few mass markets.

B) Marketers go through more intermediaries to connect with consumers.

C) Consumers rely less on marketer-supplied information than in the past.

D) Marketers have increasingly moved toward mass-marketing techniques.

E) Marketers tend to supply less information to consumers than in the past.

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

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

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

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

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

2) Advertising is used mostly by ________.

A) governments

B) business firms

C) social agencies

D) independent professionals

E) not-for-profit organizations

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

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

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

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

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

11) Advertising is a good way to ________, inform, and persuade.

A) educate

B) create

C) define

D) engage

E) harvest

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

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

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) institutional

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

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

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) convert

E) institutional

18) Comparative advertising is also known as ________ advertising.

A) attack

B) institutional

C) convert

D) reminder

E) informative

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

20) Encouraging customers to switch brands is most likely the objective of ________
advertising.

A) informative

B) reminder

C) covert

D) persuasive

E) institutional

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

22) Describing available services and support is most likely a goal of ________ advertising.

A) reminder

B) competitive

C) convert
D) attack

E) informative

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) convert

E) competitive

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

25) A product in the maturity stage will most likely require ________ advertising.

A) informative

B) comparative

C) persuasive

D) reminder
E) convert

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

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

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
29) Expensive Coca-Cola television ads are primarily designed to ________.

A) deliver promotional materials via QR codes

B) move buyers to immediate action

C) attack the firm's primary competitors

D) build and maintain the Coca-Cola brand relationship

E) inform new consumers about Coca-Cola

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

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
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

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

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

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.

36) Producing a single 30-second television commercial costs an average of ________.

A) $350,000

B) $123,000

C) $1.2 million

D) $434,000

E) $55,000

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
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

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

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

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

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

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

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

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

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

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) distinctive

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

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
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

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

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
E) testimonial evidence

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

E) testimonial evidence

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

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

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

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

C) personality symbol

D) technical expertise

E) musical

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
D) technical expertise

E) slice of life

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

60) Maybelline used Gigi Hadid, a model, to endorse a new range of cosmetics. This
message execution style is referred to as ________.

A) lifestyle

B) testimonial evidence

C) image

D) technical expertise

E) personality symbol

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

C) personality symbol
D) image

E) slice of life

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

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

64) The main block of text in a print ad is referred to as the ________.

A) copy

B) testimonial evidence

C) headline

D) slogan
E) message strategy statement

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) consumerism

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

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.
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

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

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

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

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.

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
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

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

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

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.

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) television

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.

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

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

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

83) While traditional mass media still make up a significant portion 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

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

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

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

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) macromedia

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

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

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

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

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

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

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.

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

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.

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

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.

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.
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

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

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

15) Sales force management includes all of the following EXCEPT ________ salespeople.

A) recruiting

B) evaluating

C) paying

D) supervising

E) training

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?

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

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.

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.
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

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.

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

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.

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

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 small
geographic area

E) when a company sells a narrow variety of products to many types of customers over a
small geographic area

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

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
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

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

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
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

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

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.

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

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

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.

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

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.

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

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

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

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

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

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

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

46) Which of the following is a primary reason that companies use online training tools 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 online training are mostly ineffective.

C) Online training eliminates employee attrition.

D) Online training is the best way to simulate real-life sales calls.

E) Online training cuts travel and training costs.

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

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

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

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.

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

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

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

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

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
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

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) break even analysis

C) sales forecast

D) expense reports

E) call plan

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
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