3.In a price negotiation, the number that each side will use to distinguish between a successful and an unsuccessful negotiation is called the:

a.	concession	d.	limit
b.	opening position	e.	breakeven position
c.	aspiration price

4.While following a competitor's lead in pricing is acceptable, there can be no signaling of prices to a competitor. This illegal practice, called _____, occurs when two or more competitors collaborate in setting prices.

a.	indirect pricing	d.	price fixing
b.	reference pricing	e.	price signaling
c.	collaborative pricing

5.Which of the following statements best describes a channel that is effective?

a.	A channel that has no redundancies
b.	A channel that provides the best in terms of time, place, and possession utility
c.	An integrated channel that operates at half the cost of competing channels
d.	A tightly integrated channel that operates with little or no waste
e.	A channel that meets the needs of all supply chain partners

6.In the Mercedes dealer network, individual dealers are given the sole right to sell Mercedes vehicles within a defined geographic area. What type of distribution does Mercedes employ?

a.	exclusive distribution	d.	limited distribution
b.	intensive distribution	e.	prestige-based distribution
c.	selective distribution

7.Because the company was angered by the actions of its resellers, Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding?

a.	legitimate power	d.	reward power
b.	coercive power	e.	logistical power
c.	referent power

8.Hallmark is a good example of a company that uses _____ distribution as a means of offering two or more lines of the same merchandise through two or more outlets.

a.	direct	d.	dual
b.	secondary	e.	complementary
c.	split

9.When firms use a(n) _____ strategy, they focus their promotional efforts toward stimulating demand among final customers, who then exert pressure on the supply chain to carry the product.

a.	pressurization	d.	guerilla
b.	IMC	e.	push
c.	pull

10.The most widely used method of setting the advertising budget and planning advertising expenditures is the _____ approach.

a.	objectives and task	d.	arbitrary
b.	percentage of sales	e.	incremental
c.	competitive matching

11.In today's economy, personal selling has evolved to take on elements of customer service and marketing research. Why is this the case?

a.	It is less expensive to deliver service and conduct research with the sales staff.
b.	It is more time efficient because salespeople are already interacting with customers.
c.	Personal selling now focuses more on developing relationships than on generating transactions.
d.	It allows salespeople to earn higher commissions for doing more work.
e.	None of the above is correct.

12.Which sales force compensation system is best suited to situations where salespeople are responsible for pre- and post-sale service and sales managers want maximum control over selling expenses?

a.	straight commission	d.	geographic allocation
b.	a combination approach	e.	straight salary
c.	direct compensation

13.One of the links between strategic planning and marketing implementation is interdependency, which refers to the fact that:

a.	strategy and implementation both result from trial and error.
b.	top executives often don't understand how a strategy is to be implemented.
c.	the marketing plan affects how it will be implemented, and implementation affects the marketing plan.
d.	both strategy and implementation must constantly evolve.
e.	both strategy and implementation must adapt to environmental changes.

14. Marketing implementation is often problematic, as marketing plans are usually devised by _____, while implementation is the responsibility of _____.

a.	production; marketing	d.	top management; frontline employees
b.	marketing; production	e.	finance; marketing
c.	the CEO; middle management

15.In terms of marketing structure, what type of structure coordinates and manages all marketing activities and decisions from the top of the marketing hierarchy?

a.	a regulated marketing structure	d.	a lateral marketing structure
b.	a dynamic marketing structure	e.	a decentralized marketing structure
c.	a centralized marketing structure

16.Work activities that absorb inputs to create information and communication outputs that ensure the consistent day-to-day operation of the firm are referred to as:

a.	organizational values	d.	implementation and control
b.	shared goals and values	e.	strategic systems
c.	organizational systems and processes

17.In times past, developing and implementing the "right" marketing strategy was all about _____. In today's economy, however, that emphasis has shifted to developing strategies that attract and retain customers over the long term.

a.	aggressive selling in order to maximize sales volume
b.	creating a large number of transactions in order to maximize the firm's market share
c.	conducting extensive research to discover customer needs
d.	making the highest quality product
e.	making products of moderate quality that could be sold at the lowest possible price

18.With respect to competitive advantages, many see _____ as the most important resource or asset that an organization can possess, as it stems from the value generated by the trust, commitment, cooperation, and interdependence among relationship partners.

a.	partnership capital	d.	relational collaboration
b.	integrity	e.	professionalism
c.	relationship capital

19.When a firm begins to charge high fees for additional services to non-profitable customers, it has determined that the _____ of those customers is too low to warrant added efforts at maintaining a relationship with them.

a.	client value	d.	market share
b.	lifetime value	e.	80/20 value
c.	relational value

20.What is the primary disadvantage associated with using financial incentives as a means of developing customer relationships?

a.	They take a long time to work.
b.	Customers may resist the use of financial incentives.
c.	They can be expensive to use.
d.	They can promote continual brand switching.
e.	All of the above are primary disadvantages.