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Chapter–by–chapter aids: Appendix B Instructor’s Manual to Accompany Essentials of Marketing IV-B-1 APPENDIX B: MARKETING ARITHMETIC APPENDIX B – COMMENTS ON QUESTIONS AND PROBLEMS B- 1. a. Net sales plus returns and allowances equal gross sales. b. Purchases at billed […]

Instructor’s Manual to Accompany Essentials of Marketing V-1 Part V: Comments on Cases in Essentials of Marketing INTRODUCTION This edition of Essentials of Marketing includes two different types of marketing cases: 8 video cases and 36 traditional cases (after Appendix […]

Comments on Cases in Essentials of Marketing if it continues to appeal, they become regular patrons. Ice skating, on the other hand, has been more exercise–oriented – and those who are satisfied with this experience are the ones who return. […]

Comments on Cases in Essentials of Marketing Instructor’s Manual to Accompany Essentials of Marketing V-21 Should the firm increase the number of sales reps? Since sales reps are a marginal expense, there is very real advantage from increasing the number […]

Comments on Cases in Essentials of Marketing One way to beat this cutthroat competition is to bring out new products continually (at a cost for dies, promotion, etc.) and command a price premium for a short time. Joseph O’Sullivan seems […]

Part IV CHAPTER 1: MARKETING’S VALUE TO CONSUMERS, FIRMS, AND SOCIETY CHAPTER 1 – COMMENTS ON QUESTIONS AND PROBLEMS 1- 1. This question is intended to stimulate the same kind of thinking that is prompted by the introduction to the […]

Chapter–by–chapter aids: Chapter 10 A firm that sells installations might want to use direct distribution in its domestic market. Installations are often a high–ticket purchase for the business customer and there may be many questions for the seller. Aspects of […]

Chapter–by–chapter aids: Chapter 10 $200,400. This analysis may warrant some class discussion. Some students will argue that it should be easy to increase share of purchases by “just a few percentage points” – especially when this is compared with the […]

Chapter–by–chapter aids: Chapter 11 Instructor’s Manual to Accompany Essentials of Marketing IV–11-3 intermediary who holds inventory and meets the demands of local customers on a just–in–time basis. Air freight may make it feasible for a firm to provide just–in–time delivery […]

Chapter–by–chapter aids: Chapter 12 Instructor’s Manual to Accompany Essentials of Marketing IV–12-1 CHAPTER 12: RETAILERS, WHOLESALERS, AND THEIR STRATEGY PLANNING CHAPTER 12 – COMMENTS ON QUESTIONS AND PROBLEMS 12– 1. The purpose of this question is to have students recognize […]

Part IV depending on how well the ad stimulates awareness – and ultimately converts “aware” prospects to buyers. For example, if only 50 percent of the prospects become aware, the cost per buyer is $14.59. This poor result would make […]

Chapter–by–chapter aids: Chapter 14 Instructor’s Manual to Accompany Essentials of Marketing IV–14-1 CHAPTER 14: PERSONAL SELLING AND CUSTOMER SERVICE CHAPTER 14 – COMMENTS ON QUESTIONS AND PROBLEMS 14– 1. See Exhibit 14-1. Strategy decisions should be made by the marketing […]

Chapter–by–chapter aids: Chapter 13 Instructor’s Manual to Accompany Essentials of Marketing IV–13-1 CHAPTER 13: PROMOTION – INTRODUCTION TO INTEGRATED MARKETING COMMUNICATIONS CHAPTER 13 – COMMENTS ON QUESTIONS AND PROBLEMS 13– 1. See section “Which Methods to Use Depends on Promotion […]

Chapter–by–chapter aids: Chapter 14 might have difficulty obtaining information about the relative merits of available products. Thus, it would seem desirable to permit at least some personal selling to provide information (answer questions). But once some personal selling effort is […]

Chapter–by–chapter aids: Chapter 15 communicates effectively with the target audience. Rather than considering the likely effectiveness of the ad, they will instead focus on some aspect of the ad that they like (the photo, a humorous headline, etc.). When one […]

Chapter–by–chapter aids: Chapter 16 Instructor’s Manual to Accompany Essentials of Marketing IV–16-1 CHAPTER 16: PRICING OBJECTIVES AND POLICIES CHAPTER 16 – COMMENTS ON QUESTIONS AND PROBLEMS 16– 1. See Exhibit 16-1 and section “Price Has Many Strategy Dimensions.” Using an […]

Chapter–by–chapter aids: Chapter 17 CHAPTER 17: PRICE SETTING IN THE BUSINESS WORLD CHAPTER 17 – COMMENTS ON QUESTIONS AND PROBLEMS 17– 1. Many department stores have high costs due to the services offered. The high costs dictate higher prices. At […]

Chapter–by–chapter aids: Chapter 18 CHAPTER 18: ETHICAL MARKETING IN A CONSUMER– ORIENTED WORLD: APPRAISAL AND CHALLENGES CHAPTER 18 – COMMENTS ON QUESTIONS AND PROBLEMS 18– 1. This is basically a review question. See section “How Should Marketing Be Evaluated?” It […]

Chapter–by–chapter aids: Chapter 18 units produced and sold during that period. The firm’s invoices read “F.O.B.—Delivered” and “1/10, net 30.” Customers are allowed to deduct 3 percent from the face value of the invoice for buying plates in carload quantities, […]

Chapter–by–chapter aids: Chapter 18 Instructor’s Manual to Accompany Essentials of Marketing IV–18–19 D-8. In the EI case, in which stage of the product life cycle do semiconductors appear to be? A) Market maturity B) Sales decline C) Market introduction D) […]

Chapter–by–chapter aids: Chapter 1 CHAPTER 1 – COMMENTS ON USE OF CREATING MARKETING PLANS IV-1-10 Perreault, Cannon, & McCarthy QUESTION WITH THIS CHAPTER Note: The Creating Marketing Plans questions begin in Chapter 2 CHAPTER 1 – SUMMARY OF CONNECT HOMEWORK […]

Chapter–by–chapter aids: Chapter 2 Instructor’s Manual to Accompany Essentials of Marketing IV-2-9 is maintained). Or, if the original $2.00 per unit distribution cost is used in the spreadsheet, the profit will increase to $50,000. This analysis shows that the target […]

Chapter–by–chapter aids: : Chapter 3 Instructor’s Manual to Accompany Essentials of Marketing IV-3-5 short–term but softer in the long term. Makers of other products may want to have a longer– term plan to evolve their product lines as this group […]

Chapter–by–chapter aids: Chapter 4 Instructor’s Manual to Accompany Essentials of Marketing IV-4-1 CHAPTER 4: FOCUSING MARKETING STRATEGY WITH SEGMENTATION AND POSITIONING CHAPTER 4 – COMMENTS ON QUESTIONS AND PROBLEMS 4- 1. A generic market is a market with broadly similar […]

Chapter–by–chapter aids: Chapter 4 Video Case 4: Potbelly Sandwich This video summarizes the marketing strategy of Potbelly Sandwich Works, Inc. along the 4Ps and features interview footage with Bryant Keil, Chairman and CEO of the company. Chicago–based Potbelly Sandwich Works, […]

Chapter–by–chapter aids: Chapter 5 targeting the growing Hispanic subculture in California (and other areas). Some of the changes in “product” include more “familiar” brands imported from Mexico and different varieties of food, especially more choice of products that are basic […]

Chapter–by–chapter aids: Chapter 6 Instructor’s Manual to Accompany Essentials of Marketing IV-6-1 CHAPTER 6: BUSINESS AND ORGANIZATIONAL CUSTOMERS AND THEIR BUYING BEHAVIOR CHAPTER 6 – COMMENTS ON QUESTIONS AND PROBLEMS 6- 1. The answer to this question is discussed in […]

Chapter–by–chapter aids: Chapter 7 CHAPTER 7: IMPROVING DECISIONS WITH MARKETING INFORMATION CHAPTER 7 – COMMENTS ON QUESTIONS AND PROBLEMS 7- 1. This question relates to the text discussion in the section, “Effective Marketing Requires Good Information.” Basically, a marketing information […]

Chapter–by–chapter aids: Chapter 8 Instructor’s Manual to Accompany Essentials of Marketing IV-8-1 CHAPTER 8: ELEMENTS OF PRODUCT PLANNING FOR GOODS AND SERVICES CHAPTER 8 – COMMENTS ON QUESTIONS AND PROBLEMS 8- 1. See section “What Is a Product?” The main […]

Chapter–by–chapter aids: Chapter 8 may help them understand the reasons some business products producers sell directly to their customers. Similarly, focusing on the jobs that need to be done, the kind and caliber of salespeople required, and the kind of […]

Chapter–by–chapter aids: Chapter 9 Instructor’s Manual to Accompany Essentials of Marketing IV-9-1 CHAPTER 9: PRODUCT MANAGEMENT AND NEW–PRODUCT DEVELOPMENT CHAPTER 9 – COMMENTS ON QUESTIONS AND PROBLEMS 9- 1. This is just a review question. See section “Managing Products over […]

Chapter–by–chapter aids: Chapter 9 CHAPTER 9 – COMMENTS ON USE OF SUGGESTED CASES WITH THIS CHAPTER Case 6: Applied Steel This case can be used here to discuss what a “new” product is and the difficulty of winning acceptance for […]

Considering that only a small percentage of cell phone users in many developed countries have smartphones, advertisers are wary about the effectiveness of delivering online ads on smartphones. Answer: GE’s strategic planning grid considers two dimensions-industry attractiveness and business strengths-to […]

Use this information for question that refer to the Pricing 1 case. (WPI) case. As a project for her marketing class, Emily Washington is researching how five local businesses price their products. The following are brief sketches of what she […]

Regarding bid pricing: A. the same overhead charges and profit rates should apply to all bids-to avoid legal problems. B. most firms should try to bid for as many jobs as possible-to spread risk. C. all business buyers are legally […]

When an individual producer sets a price for its product to earn a certain profit while consumers search for the product at the lowest price available from any producer, this is an example of: A. separation in time. B. discrepancy […]

Most Western economies are completely market-directed. Answer: Despite the functions they provide, the number of wholesalers in the United States has decreased 16 percent in the last 15 years. Answer: TRUE The number of wholesalers in the United States has […]

A major accounts sales force is used when a company wants to be certain that its most important customers get a special selling effort. Answer: Average-cost pricing means adding a reasonable markup to the total cost of a product. Answer: […]

The EARLY MAJORITY have a lot of contact with: A. innovators. B. the mass media only. C. the mass media, salespeople, and early adopter opinion leaders. D. impersonal and scientific information sources. E. salespeople only. Answer: Cooperative chains: A. are […]

Marketing specialists such as intermediaries and collaborators hinder the exchange process between producers and consumers. Answer: A segmenter is more likely than a combiner to really satisfy a target market and build such a close relationship with customers that it […]

The majority of all retailers in the U.S. have annual average sales of less than $1 million. Answer: Marketing only applies to profit organizations. Answer: FALSE Marketing applies to both profit and nonprofit organizations. Marketing activities should begin with potential […]

Business professional services: A. may not be purchased outside the firm if they are needed regularly. B. support a firm’s operations. C. are offered by a growing number of specialists. D. are generally treated as expense items. E. All of […]

A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers. Answer: Staples are consumer products that are sold in places like gourmet shops and health […]

Which of the following is an example of a limited-function merchant wholesaler? A. Cash-and-carry wholesaler B. Broker C. Mill supply house D. General-line wholesaler E. Specialty wholesaler Answer: Midway, Inc. has seen most of its competitors drop out of its […]

The economic-buyer theory assumes that consumers know all the facts and logically compare choices. Answer: Goods are typically mass-produced in a factory far away from customers, while services are produced in their presence. Answer: TRUE Goods are typically mass-produced in […]

An established merchant wholesaler of business supplies would rely mainly on: A. merchandisers. B. order takers. C. order getters. D. supporting salespeople. E. missionary salespeople. Answer: _________ directs an economy’s flow of goods and services from producers to consumers in […]

Merging two or more submarkets into one larger target market as a basis for one strategy is known as the ____ target market approach. A. particular B. multiple C. combined D. compound E. blended Answer: Which of the following is […]

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate. She must plan her offerings with the _____ environment in mind. A. economic B. […]

Compared to a product-market, a generic market: A. Is more narrowly defined. B. Has sellers offering a more diverse set of products. C. Can never help marketers identify opportunities. D. None of these is a good answer. Answer: Which of […]

In the U.S., about three-fourths of new retailing ventures fail during the first year. Answer: Flexible-price policies are most common in the channels, in direct sales to business customers, and for expensive shopping products because sales reps may need to […]

Which of the following publicity tools would a software company most likely use in order to target commercial press? A. Customer reviews B. Case studies C. Blogs D. Podcasts E. Online media room Answer: All publicity relies on mass media […]

Logs, fish, cotton, and strawberries can all be: A. supplies. B. raw materials. C. component parts. D. capital items. E. accessories. Answer: Which of the following is true of competitive advertising? A. It informs potential customers about the new product […]

Purchasing managers in business markets (compared to buyers in consumer markets) are generally: A. fewer in number. B. more technically qualified. C. less emotional in their buying motives. D. more insistent on dependability and quality. E. all of these alternatives […]

Open-ended questions are less likely to be asked in quantitative research than in qualitative research. Answer: Activities, Interests and Opinions are the “AIO” variables used in lifestyle analysis. Answer: TRUE Psychographics or lifestyle analysis is the analysis of a person’s […]

A marketing manager should seek help from research only for problems where the risk of a decision can be greatly reduced at a reasonable cost. Answer: Internet retailers don’t need to develop whole marketing strategies due to their self-service nature. […]

Opinion leaders: A. are usually better educated. B. are usually wealthier. C. are people who influence others. D. are rarely actually involved in product-related discussions with the people who “follow” them. E. All of these alternatives are true. Answer: Which […]

Sandi Barefoot sells the entire output of several small companies based in Silicon Valley. Each of the companies designs and produces remote control devices. Sandi has almost complete control of pricing and selling-because the engineers who started the companies are […]

Gen Y is the result of the echo boom and its members are more techno-savvy than any other group. Answer: In a recent Nielsen online survey of over 28,000 Internet consumers from 56 countries, over 60 percent of respondents said […]

_____ are responsible for working with suppliers and arranging the terms of sale. A. Gatekeepers B. Deciders C. Influencers D. Users E. Buyers Answer: “Price fixing” means: A. changing a price that was set at the wrong level by the […]

Introductory price dealing involves setting high initial prices on a product when it is introduced-to see how much consumers are willing to pay. Answer: Status quo pricing objectives suggest avoiding price competition, but may lead to very aggressive competition with […]

The “battle of the brands” is the competition between dealer brands and manufacturer brands. Answer: The message channel may be as important as the message itself in influencing the receiver. Answer: TRUE The communication process is complicated even more because […]

Ross Wrigley refuses to buy Billy Goat brand of beer; his attitude toward this brand is called _____. A. brand rejection B. brand familiarity C. brand nonrecognition D. brand recognition E. brand positioning Answer: Calumet Pottery Supply allows a 10 […]

It is not uncommon for sales personnel at The Electronics Showroom to use aggressive sales tactics to encourage customers to buy Giant-Size brand televisions. Giant-Size has encouraged this behavior by using: A. advertising allowances. B. push money allowances. C. stocking […]

Committee buying in large retail chains A. makes the buyers work as a group and thus lower costs. B. allows a sales rep to avoid a difficult buyer. C. makes it difficult for the seller to see a buyer personally. […]

A good S.W.O.T. analysis helps a manager focus on a strategy that takes advantages of the firm’s opportunities and strengths while avoiding its weaknesses and threats to its success. Answer: Direct-response promotion targets specific individuals who respond directly. Answer: TRUE […]

Information technology involves a trade-off because it cannot improve service levels and cut costs at the same time. Answer: A long-term commitment by an organization to a partner may reduce flexibility. Answer: TRUE Although close relationships can produce benefits, they […]

Job descriptions are not necessary for personal selling because all salespeople are expected to do the same task-sell products. Answer: “Good” market segments should be heterogeneous within and homogeneous between. Answer: FALSE “Good” market segments meet the following criteria: Homogeneous […]

______________ are products a consumer needs but isn’t willing to spend much time and effort shopping for. A. Convenience products B. Unsought products C. Homogeneous shopping products D. Specialty products E. Heterogeneous shopping products Answer: Which of the following is […]

Which of the following statements is not characteristic of a good? A. Goods are tangible items that can be touched. B. Goods can be produced and then stored to sell at some future time. C. Goods are typically manufactured at […]

Sales promotion aimed at company’s own sales force is sometimes called trade promotion. Answer: Any contractual channel system-by definition-is also an administered channel system. Answer: TRUE In contractual channel systems, the channel members agree by contract to cooperate with each […]

The development of department stores and supermarkets is explained by the “wheel of retailing” theory. Answer: Computing a percentage of either past sales or sales expected in the future is the most common method of budgeting for promotion expenditures. Answer: […]

Regarding sales force compensation methods: A. combination plans provide some security and some incentive. B. straight commission avoids the need to consider a sales quota. C. straight salary provides the most incentive. D. sales quotas play no role in any […]

Getting reactions from customers about how well a new-product idea fits their needs is A. concept testing. B. target marketing. C. screening. D. brand positioning. E. product liability. Answer: A firm which makes stereo radios and CD players for car […]

The term ‘supply chain” can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm). Answer: Motivation, perception, learning, attitudes, trust, and lifestyle are psychological variables that affect consumer buying. Answer: […]

Concerning consumer and business markets: A. promotion to consumer markets usually relies more heavily on the use of personal selling. B. it is often easier to define customer needs in business markets. C. a marketing mix directed at an organizational […]

Regarding a marketing information system (MIS): A. The input of marketing managers is not needed in developing an MIS; marketers should leave everything to information technology specialists. B. Can be used to improve implementation and control. C. A good MIS […]

Although the salesperson’s job may change constantly, there are three basic sales tasks. Answer: Customer lifetime value represents the total stream of purchase a customer could contribute to the company over the life of the relationship. Answer: TRUE Customer lifetime […]

Which of the following advertising headlines is MOST oriented toward stimulating PRIMARY demand? A. “See your Hewlett Packard dealer to learn how an affordable portable printer can make business travel easier.” B. “Panasonic is the value leader.” C. “IBM printers […]

Because the cultural and social environment tends to change slowly, firms should try to identify and work with cultural attitudes rather than trying to encourage big changes in the short run. Answer: A competitive bid is the terms of sale […]

Trucks A. are best at moving large quantities of goods for longer distances. B. are the most expensive of any of the modes. C. are very slow compared to railroads, and this makes it hard to compete effectively. D. compete […]

According to learning theory, a cue is likely to result in a consumer response only if there is a drive to satisfy. Answer: The fastest rate of growth in GDP is occurring in the nations with the largest current GDP. […]

Concerning the “universal functions of marketing,” which of the following statements is false? A. These functions can be performed by producers, intermediaries, collaborators, or consumers. B. Responsibility for performing these functions can be shared and shifted. C. From a micro […]

The move of the “Baby Boomers” into the 45-64 age group: A. increased the average age of the population. B. created new opportunities in financial services. C. contributed to increased interest in health and fitness products. D. All of these […]

When selling ____ products, a marketing manager should recognize that consumers have low price sensitivity and the product should have widespread distribution near the probable point of need. A. homogeneous B. specialty C. emergency D. impulse E. regularly unsought Answer: […]

Products that are meant for use in producing other products are __________ products. A. convenience B. shopping C. specialty D. unsought E. business Answer: When rice producers from China sold rice for a lower price in Japan as compared to […]

Good marketing managers know that: A. a major advantage of personal selling is that noise can be eliminated. B. noise in the communication process improves promotion effectiveness. C. the trustworthiness of the source does not affect how receivers evaluate a […]

The primary purpose of the transporting and storing functions of marketing is to overcome: A. the need for marketing specialists. B. separation of information. C. spatial separation. D. discrepancies of assortment. E. separation of values. Answer: Which of the following […]

It is illegal for a firm to use a package that cannot be recycled. Answer: When considering international markets, income is often one of the most important demographic dimensions. Answer: TRUE Income is often one of the most important demographic […]

Trying to maximize short-run return on investment may not be compatible with a company’s other objectives. Answer: Micro-marketing is a social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively […]

A manufacturer of computer printers has decided to add scanners to its line. Which kind of advertising should it stress if it wants to persuade consumers to buy its brand of more or less similar scanners? A. Reminder B. Cooperative […]

Low consumer spending and a lack of adequate financing are conditions that arise mostly due to factors in: A. the competitive environment. B. the cultural and social environment. C. the technological environment. D. the political environment. E. the economic environment. […]

Discretionary income is an elusive concept because the definition of necessities varies from family to family and over time. Answer: Finding her favorite brand of shampoo temporarily out of stock, a supermarket shopper is more likely to take part in […]

A(n) _______ is a marketing mix that customers see as better than a competitor’s mix and cannot be quickly or easily copied. A. resource combination B. sustainable competitive advantage C. objective-centered approach D. competitor analysis plan E. competitor matrix Answer: […]

As of 2011, which one of the following countries does not have more than 80% of its population using the Internet? A. Norway B. Germany C. United States D. Finland E. All of these countries have more than 80% of […]

A mission statement substitutes for more specific objectives. Answer: The major disadvantage of price lining is that it is complicated for both clerks and customers. Answer: FALSE The main advantage of price lining is simplicity, for both salespeople and customers. […]

Scientists or engineers-who may have little interest in sales but do provide technical assistance to order getters-are called technical specialists. Answer: The “wheel of retailing” theory says that new retailers enter the market as high-status, high-margin, high-price operators and then […]

Psychographics is the analysis of a person’s day-to-day pattern of living as expressed in that person’s A. safety, social, and personal needs. B. actions, interests, and occupation. C. activities, interests, and opinions. D. culture, beliefs, and attitudes. E. psychological and […]

Why should pricing objectives be explicitly stated? A. They have a direct effect on pricing policies and the methods used to set the price. B. It provides direction for company-level objectives. C. Explicitly stating objectives provides legal protection for the […]

Poor customer service is likely to reduce a firm’s customer equity. Answer: Brand insistence means that target customers usually choose one brand over other brands, perhaps because of habit or favorable past experience. Answer: FALSE Brand preference means that target […]

Newman’s Own (a salad dressing brand) donates 100 percent of its after-tax profits to progressive causes. Newman’s Own is focusing on satisfying what level in the hierarchy of needs? A. Social needs B. Personal needs C. Safety needs D. Physiological […]

According to the “hierarchy of needs” model, the first needs most people try to satisfy are their ______________ needs. A. safety B. personal C. physiological D. social E. any of these are correct. Answer: After identifying its key customers in […]

A firm that adopts the “marketing concept” will aim all its efforts at satisfying customers, while trying to make a profit. Answer: Sales promotion problems are likely to be greater when an advertising or sales manager, instead of a sales […]

As in the Toddler University case, the needs of a target market virtually determine the nature of an appropriate marketing mix. Answer: Expense items are depreciated over many years, while capital items are charged off as they are used-usually in […]

The _____ can help the promotion effort by spreading word-of-mouth information and advice among other consumers. A. innovators B. late majority customer group C. laggards D. early adopters E. nonadopters Answer: Gillette spent $100 million in its first year of […]

The most COMMON method of budgeting for marketing expenses is to: A. match competitors’ spending. B. allocate any funds not already allocated to other functions. C. allocate enough to completely eliminate the cost of lost customers. D. allocate for the […]

The product life cycle describes the stages a really new product idea goes through from beginning to end. Answer: Sales and profits generally decrease continually throughout the product life cycle. Answer: FALSE Sales and profits move from very low in […]

In general, product life cycles appear to be getting longer in recent years. Answer: The Internet is a system for linking computers around the world. Answer: TRUE The Internet is a system for linking computers around the world. The marketing […]

Although advertising expenditures in the United States by 2013 were more than $220 billion, the major expense was for media time and space-not payroll expense to people who worked in the advertising industry. Answer: As opposed to behavioral targeting, social […]

Value pricing involves developing a “bare bones” marketing mix and a cheap price. Answer: The growth of mega-agencies has been prompted by large corporations who need to advertise worldwide. Answer: TRUE The mega-agency can offer varied services, wherever in the […]

When a company decides to use the same brand name for several products, it is a(n) A. individual brand. B. family brand. C. dealer brand. D. private brand. E. select brand. Answer: “Prospecting:” A. involves following a few leads in […]

When selling to government customers, competitive bids are common. Answer: Generally, the nations with the fastest growth in GDP are not the nations with the largest GDPs. Answer: TRUE Exhibit 3-5 gives an estimate of GDP for each country listed. […]

Direct-response promotion usually relies on a(n) _____ database to target specific prospects. A. customer relationship management B. sales force management C. entity-attribute-value model D. enterprise relationship management E. multidimensional preference Answer: A young working couple earned $35,000 last year, and […]

Mass selling and sales promotion dominate the promotion blends of consumer products firms in the market maturity stage. Answer: In the United States, the West and the South are growing faster than the Northeast and the North Central areas. Answer: […]

Marketing ethics are the moral standards that guide marketing decisions and actions. Answer: Examples of personal needs include self-esteem, accomplishment, fun, freedom, and relaxation. Answer: TRUE Personal needs are concerned with an individual’s need for personal satisfaction, unrelated to what […]

The text’s discussion of Ford’s marketing strategy highlights the fact that: A. creative strategy planning is needed for survival. B. there is little alternative but to stick with the traditional promotion channels for a product. C. most consumers want only […]

A salesperson may have to make choices about A. which particular products in the whole line to push most aggressively. B. what specific target customers to aim at. C. how to adjust prices. D. which intermediaries to rely on or […]

Manufacturers’ agents earn higher commissions for introducing new products than they do for selling established products. Answer: Marketing functions are performed by producers, consumers, and a variety of marketing specialists. Answer: TRUE Producers and consumers sometimes handle some of the […]

Generation Y refers to: A. those born from 1978-1994 B. those born since 1994 C. those born from 1965-1997 D. those born from 1945-1964 E. those born before 1945 Answer: Indirect channels are probably a better choice than direct channels […]

When a firm’s domestic market is prosperous, marketing managers are less likely to pursue opportunities in international markets. Answer: Digital self-service is particularly effective when the customer needs routine information on a recurring basis. Answer: FALSE Emphasis on standardized e-commerce […]

Use the following information to answer question that refer to the Jewel Craft case. Jewel Craft, Inc. is a leading producer in the United States’ women’s costume jewelry and accessories market. Its brands are well known and are sold by […]

The letters in “S.W.O.T. analysis” are an abbreviation for the first letters of the words ‘strengths, weaknesses, opportunities, and threats.” Answer: A channel of distribution is a series of firms or individuals participating in the flow of products from the […]

Which of the following observations concerning introductory price dealing is true? A. Established competitors usually choose to meet introductory price dealing. B. They are temporary price cuts to speed new products into a market. C. They have the same effect […]

Marketing encourages the development and spread of new ideas, goods, and services. Answer: Customer satisfaction is the extent to which a firm fulfills a consumer’s needs, desires, and expectations. Answer: TRUE Customer satisfaction is the extent to which a firm […]

Which of the following demonstrates how the technological environment is changing the way marketers promote products? A. Marketing aimed at youth is increasingly regulated by governments. B. Search engines match consumer searches with relevant banner ads. C. Marketers make routine […]

In an advanced economy, marketing costs account for about ___ cents of every consumer dollar. A. 10 B. 20 C. 30 D. 40 E. 50 Answer: The regrouping activity which involves grading or sorting products into the grades and qualities […]

Marketing managers should be able to explain the kinds of problems they are facing and the kinds of marketing research information that will help them make decisions. Answer: A major advantage of mass selling is that the source-the seller-can get […]

After making a purchase, buyers often wonder if they made the right choice. The resulting tension is called dissonance. Answer: Cookies are a cost-effective way for advertisers to target ads and boost online sales. Answer: TRUE Placing cookies on websites […]

Managers at Wayzata Communications, an Internet service provider, want access to a continual flow of information about their market-available whenever they need it. Wayzata managers need a(n) A. marketing information system. B. intranet. C. data warehouse. D. customer relationship management […]

Customer service reps are more useful for “keeping” customers, rather than “winning” new customers. Answer: A salesperson who aggressively seeks out possible buyers with a well-organized sales presentation designed to sell a product is a missionary sales rep. Answer: FALSE […]

Debbie Wood sells food products to grocery wholesalers and large supermarket chains in Tallahassee. She sells for several manufacturers with noncompeting lines of food products-earning a 5 percent sales commission. She neither handles nor owns the products she sells. Debbie […]

Which of the following is NOT a component material? A. Paper. B. Copper wire. C. Copper ore. D. Copper screens. E. None of these, i.e., all are component materials. Answer: Compared to U.S. averages, the median age of Hispanic Americans […]

Regarding new-product development, market tests: A. are used mostly for durable products because of their high production costs and risks. B. seek customer reactions to ideas-not actual products. C. should test the product and specific marketing mix variables. D. are […]

Which of the following observations concerning beliefs is FALSE? A. Beliefs don’t necessarily involve any liking or disliking. B. A belief is a person’s opinion about something. C. Beliefs may help shape a consumer’s attitudes. D. Beliefs are more action-oriented […]

Gloria Highnote works for CD Wholesale. She helps CD’s retailer-customers set up their cooperative advertising, helps train the retailer’s salespeople, and gives CD feedback on how sales promotion ideas are working. Gloria is: A. a technical specialist. B. a customer […]

The simple trade era was a time when families traded or sold their ‘surplus” output to local distributors who resold these goods to other consumers or distant distributors. Answer: Discretionary income is what is left after paying taxes. Answer: FALSE […]

The scientific method A. rejects the idea that marketing managers can make “educated guesses” about marketing relationships. B. shows that every marketing research project should have five steps. C. is an orderly and objective approach to judging how good an […]

Parents who spent years limiting purchases to home necessities and kids’ entertainment often embrace more luxury-oriented buying patterns later in life. This phenomenon is related to: A. changes in purchase situation. B. selective retention. C. reinforcement. D. changed physiological needs. […]

The letters in “S.W.O.T. analysis” are an abbreviation for the first letters of the words ‘strengths, weaknesses, opportunities, and threats.” Answer: Shopping for a specialty product involves comparing the special features of different brands. Answer: FALSE Specialty products are consumer […]

If random selection is used to develop a sample, researchers can use statistical methods to help determine the likely accuracy of the sample value; this is done in terms of _____. A. empirical clusters B. prediction intervals C. regression coefficients […]

A good marketing manager for a retailer knows that: A. economic needs are more important than emotional needs in choosing a store. B. shopping atmosphere has little comparative importance. C. consumers only go to stores that offer the lowest possible […]

Expense items which have had more processing than raw materials and become part of a finished product are component parts and materials. Answer: Marketing managers for Mountain Dew used a positioning statement to help focus efforts and gain market share […]

A flexible-price policy is illegal in the U.S. Answer: A market is a group of competitors selling similar products. Answer: FALSE A market is a group of potential customers with similar needs who are willing to exchange something of value […]

Which of the following is TRUE about the micro-macro dilemma? A. What is good for some producers and consumers may not be good for society as a whole. B. Marketing people cannot agree on whether marketing should be viewed as […]

Physical distribution decisions interact with which other marketing mix decisions? A. Price decisions B. Promotion decisions C. Product decisions D. All of these marketing mix decisions interact with physical distribution decisions Answer: Which of the following statements about advertising agencies […]

The total cost of mass media may force a small firm to use promotion alternatives that are more expensive on a per contact basis. Answer: In customer-initiated communication, the customer decides how much information to get. Answer: TRUE The customer […]

The retailer L.L. Bean uses a multichannel approach by offering its printed catalog in the following format as well ___________. A. a cable TV shopping channel B. door-to-door selling C. a phone solicitation D. a website Answer: Educated guesses about […]

A salesperson for an athletic shoe company is assigned the functions of order-getting, order-taking, and sales support. Is this a mistake by his company? A. No, because order-getters tend to be less well trained than order-takers. B. No, because sales […]

Looking at sales volume is usually the easiest and best method of determining the degree of success for an advertising campaign. Answer: “Homogeneous within” means that the customers in a market segment should be as similar as possible with respect […]

The physical distribution concept says (or implies) that: A. transporting, storing, and product-handling are unrelated activities for cost control. B. the best distribution system is the lowest cost one. C. a firm should seek to minimize the total cost of […]