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Target marketing, in contrast to mass marketing: A. Assumes all customers have the same needs. B. Assumes everyone is a potential customer. C. Focuses only on small market segments. D. Tailors a marketing mix to fit some specific group of […]

A marketing audit is similar to an accounting audit or a personnel audit, which businesses have used for some time. A requisition is a request to buy something. Answer: TRUE A person who needs to purchase something usually completes a […]

Actually making goods or performing services is called marketing. During the ‘sales era,” the firm tries to improve short-run marketing policy planning to tie together its activities. Answer: FALSE The sales era is a time when a company emphasizes selling […]

Marketing managers for Mountain Dew used a positioning statement to help focus efforts and gain market share in a competitive environment. Business customers are sometimes less price sensitive if there are switching costs. Answer: TRUE Customers are sometimes less price […]

When consumers use a problem-solving process to make purchase decisions, what is the next step after they become aware of a problem? A. Evaluating alternative solutions. B. Gathering information about possible solutions. C. Deciding on the appropriate solution. D. Evaluating […]

If a firm has excess production capacity, it A. can serve as a safety net if demand suddenly picks up. B. may be a sign that there’s too much competition. C. may make sense for the marketing manager to try […]

Exclusive distribution is more likely to involve a more formal arrangement than is selective or intensive distribution. Answer: Good relations with intermediaries, good locations, and good salespeople are some of the many resources of a firm that should be evaluated […]

A patent owner has a 20-year monopoly to develop and use its new product, process, or material. If an individual is injured by a defective or unsafely designed product, the seller’s legal obligation to pay damages is called product liability. […]

Worldwide Applicance Co. put together data to measure sales performance by region of the United States. The Western region included 30% of the U.S. population and was expected to deliver a similar share of Worldwide’s sales. This region ended up […]

Sales data becomes wisdom when it provides answers to questions of “who,” “what,” “where,” “how much,” and “when.” Answer: The vast majority of advertising agencies are small, with 10 or fewer employees. Answer: TRUE The vast majority of advertising agencies […]

Which is the first step in market segmentation? A. Finding one or two demographic characteristics to divide up the whole mass market. B. Clustering people with similar needs into a market segment. C. Naming a broad product-market of interest to […]

Pop-up ads are small rectangular boxes that usually include text, graphics, and sometimes video to create interest. Because almost all of the world’s population can read and write, international marketers have no problems in communicating with potential customers no matter […]

Convenience (food) stores offer: A. wide assortments. B. low prices. C. more customer service than supermarkets. D. a limited assortment of “fill-in” items. E. None of these are offered by convenience (food) stores. Transporting by air: A. Works well for […]

Retailers selling a new product that is in hot demandlike the latest DVD release or a best selling bookwould be unlikely to incur higher costs for faster delivery. Organizational buyers are also referred to as industrial or intermediate buyers. Answer: […]

Organizations that adopt the marketing concept should be concerned about marketing ethics as well as broader issues of social responsibility. Promotion is communicating information between the seller and the potential buyer or others in the channel to influence attitudes and […]

It’s best to think of “breakthrough opportunities” as opportunities which: A. appeal to the mass market. B. will quickly create a whole new industry of firms competing with similar marketing mixes. C. help innovators develop hard-to-copy marketing mixes. D. increase […]

Product managers: A. Are especially common in large companies. B. Are sometimes responsible for a product’s whole marketing effort. C. Coordinate their efforts with individuals within and outside the company. D. May serve as “product champions” in planning and implementing […]

Which of the following does NOT contribute to total inventory cost? A. Costs of damage to products while in inventory. B. Costs of risks such as theft and fire. C. Costs of inventory becoming obsolete. D. Increase in the value […]

Rapid growth strains human resources because it’s a challenge getting enough qualified people. Cross-functional links rarely affect strategy planning. Answer: FALSE Cross-functional links impact one’s ability to develop marketing strategies and plans that really work. A firm that adopts the […]

Exporting is often the first step into international marketing. Answer: Implementation means putting the marketing plan into operation. Answer: TRUE Implementation refers to putting marketing plans into operation. Storing allows producers and intermediaries to keep stocks at convenient locations, ready […]

Corrective advertising corrects deceptive advertising. The basic idea for supermarkets developed in the U.S. in the 1960s when consumers started to move from the cities to the suburbs. Answer: FALSE The basic idea for supermarkets developed in the United States […]

Trying to maximize short-run return on investment may not be compatible with a company’s other objectives. The marketing strategies for the two shoe retailers Payless and Zappos are very different, and Zappos’ strategy is successful while Payless’ strategy is not. […]

In monopolistic competition, managers sometimes try to differentiate very similar products by relying on promotion or other elements of the marketing mix. Internet tools used in the B2B market that focus primarily on lowering price do not always lower TOTAL […]

Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries. The break-even point is the intersection of the total cost curve and the total profit curve. Answer: FALSE Break-even […]

In general, marketers that seek greater control over their marketing mixes in the international environment will: A. hire more marketing managers. B. invest more financial resources and take greater risks. C. use intensive distribution. D. choose to export or license. […]

Limited problem-solving probably would NOT be required in the purchase of: A. running shoes. B. an encyclopedia. C. new suit. D. coffee maker. E. fast-food restaurant meal. The primary purpose of branding is: A. to prevent competitors from stealing product […]

“Discrepancies of quantity” occur because A. producers seek economies of scale. B. most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price. C. adding intermediaries in a channel of distribution increases the […]

In which of the external environments changes usually occur most slowly? A. Cultural and social environment B. Political and legal environments C. Resources and objectives of the firm D. Competitive environment E. Economic and technological environments Concerning consumer and business […]

Regarding U.S. business and organizational customers, A. more goods and services are purchased by business and organizational customers than by final consumers. B. there are more business and organizational customers than final consumers. C. there are more manufacturers than all […]

Although the total industry demand for business products may be inelastic, the demand facing individual sellers may be extremely elastic. Answer: The traditional view of promotion has focused on communication initiated by the seller. Answer: TRUE Traditional thinking about promotion […]

Routine completion of sales made regularly to target customers is done by: A. an order taker. B. a merchandiser. C. a detailer. D. an order getter. E. a supporting salesperson. Most sales presentations follow the AIDA sequence which stands for […]

The product line of a limited line retailer would best be described as: A. including a wide assortment. B. reflecting a narrow price range. C. carrying inventory that comes from European sources. D. popular products at low prices to get […]

“Publicity”: A. is generally less useful than advertising for promoting a really new product. B. is mass selling that avoids paying media costs. C. is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor. […]

Which of the following is NOT a trend that is affecting marketing strategy planning? A. fewer vertical marketing systems. B. geographic shifts in population. C. more attention to service technologies. D. more Internet selling. E. greater use of database-directed promotion. […]

All of the following should be determined by the marketing department of a firm EXCEPT: A. storing the product. B. actually making the product. C. advertising the product. D. designing the packaging for the product. E. setting the price of […]

Which of the following observations concerning the full-cost approach is NOT TRUE? A. All costs are not allocated in all situations. B. It requires that difficult-to-allocate costs be split on some basis. C. Fixed costs are also allocated in some […]

As a product moves through its product life cycle stages: A. consumers are offered less product variety. B. distribution tends to become more and more exclusive. C. competition forces firms to skim instead of just meeting competition. D. the promotion […]

In the _____ step of the adoption process, a consumer begins to give the product a mental trial by applying it to his or her personal situation. A. interest B. confirmation C. trial D. decision E. evaluation A target marketer […]

Most firms avoid administered prices because they may be illegal under the Robinson-Patman Act. Prestige pricing involves setting a rather high price because the product has a normal down-sloping demand curve. Answer: FALSE Target customers who respond to prestige pricing […]

In a recent Nielsen online survey of over 25,000 Internet consumers from 50 countries, only 25 percent of respondents said they trusted online consumer opinions as an information source. Procurement sites operate for the benefit of buyers by directing suppliers […]

What is the objective of a target return strategy? A. A specific share of the market. B. A specific level of profit. C. A specific sales volume. D. A specific share of competitors’ sales. E. A specific mindshare of consumers. […]

A firm which makes special batteries that boat and motorcycle manufacturers buy and install directly in their new boats and cycles is selling: A. supplies. B. component parts. C. component materials. D. installations. E. accessory equipment. A large U.S. firm […]

Which of the following is an example of a task transfer? A. An employee who has been shifted to a different department with different responsibilities and duties B. A firm that bases its toll-free customer care service for technical problems […]

Differentiation of a firm’s marketing mix: A. Means the firm’s marketing mix is hard to distinguish from a competitor. B. May provide the firm with a competitive advantage in the marketplace. C. Makes it harder for consumers to notice if […]

A large producer who offers no discounts and the same prices to all customers in the U.S.: A. does not have pricing objectives. B. ignores the benefits of administered pricing. C. probably ignores nonprice competition too. D. may be “playing […]

Overview of the Major Elements of Basic Marketing P.L.U.S. Instructor’s Manual to Accompany Basic Marketing II-7 20. Ethical Marketing in a Consumer–Oriented World: Appraisal and Challenges This chapter provides an overview of key changes and trends impacting marketing (including discussion […]

Ideas about teaching the first marketing course If you miss a class, you do not need to provide me with an excuse. Further, I recognize that there are many other pressures (tests in other classes, etc.) and legitimate problems (sickness, […]

Ideas about teaching the first marketing course more and less private. How could using this site affect your browsing behavior? Should websites be required to report their use of online trackers? For related discussion see the Basic Marketing text. 9. […]

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 […]

Instructor’s Manual to accompany Basic Marketing, 19th edition William D. Perreault, Jr. Joseph P. Cannon E. Jerome McCarthy (Inside front cover. This is intentionally left blank because this file is setup to print front and back of pages.) Instructor’s Manual […]

Chapter–by–chapter aids: Chapter 2 Instructor’s Manual to Accompany Basic Marketing IV-2-11 Online Learning Center (www.mhhe.com/fourps). Video Case 6: Big Brothers and Big Sisters of America The video explores the processes by which Big Brothers Big Sisters of America (BBBSA) developed […]

Chapter–by–chapter aids: Chapter 4 Instructor’s Manual to Accompany Basic Marketing IV-4-7 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 […]

Chapter–by–chapter aids: Chapter 6 normal bidding procedure does not easily provide compensation for these intangibles. This is a serious deficiency of the bidding method, but not one easily remedied because of the possibility of favoritism entering into the letting of […]

Chapter–by–chapter aids: Chapter 8 8-24. See Exhibit 8-7 and section “Business Product Classes—How They Are Defined.” This question tries to anticipate material that is discussed in much greater detail in subsequent chapters. The instructor should not expect the students to […]

Chapter–by–chapter aids: Chapter 14 Instructor’s Manual to Accompany Basic Marketing IV–14-5 P L U S – SpreadSheet Commission Combination Plan Salary Component of Pay 0.00 18000.00 * PRODUCT A: Price 110.00 * 110.00 * Commission Percent (Of Sales $) 5.00 […]

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 12 Instructor’s Manual to Accompany Basic Marketing IV–12-3 However, as a practical matter, opportunities for retailers in international markets are probably more limited than for producers. A key issue here is the extent to which a producer […]

Chapter–by–chapter aids: Chapter 20 AACSB: Reflective Thinking Level of Difficulty: 2 Medium Learning Objective: 10-6 Blooms: Apply Feedback: Selective distribution is selling through only those intermediaries who will give the product special attention. Only the better intermediaries are used here. […]

Chapter–by–chapter aids: Chapter 19 CHAPTER 19: MANAGING MARKETING‘S LINK WITH OTHER FUNCTIONAL AREAS CHAPTER 19 – COMMENTS ON QUESTIONS AND PROBLEMS 19– 1. The various ways that a firm can raise money to support a new marketing plan – and […]

Chapter–by–chapter aids: Chapter 16 Instructor’s Manual to Accompany Basic Marketing IV–16-7 P L U S – SpreadSheet Situation Cash Discount Percent 2.00 * Days to Pay to Get Cash Discount 10 * Days to Pay Net Invoice Value 30 * […]

Comments on Cases in Basic Marketing stretched now, but if she becomes more successful that will be an issue. Demand will be systematically lower during the slow winter months and she will often have little to do. But in the […]

Part V V-24 Perreault, Cannon, & McCarthy Keen student interest in the situation works to promote good ideas and good discussion, regardless of the way in which the instructor focuses the discussion. In that regard, the case is quite flexible […]

Which of the following is most consistent with the marketing research process discussed in the text? A. “We know that time is always short, so as soon as we define the problem we get on with our data collection.” B. […]

“Good” market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational. In countries where physical distribution systems are inefficient, consumers face shortages of the products they need. Answer: TRUE In countries where physical distribution systems are inefficient, […]

Which of the following is NOT an organizational buyer? A. The Red Cross buying office supplies. B. A sporting goods retailer buying skis. C. A law office buying a background music service. D. A country club buying tennis balls for […]

If a firm’s demand curve is fairly elastic, a penetration pricing policy would be more suitable than a skimming pricing policy. A lot more firms will put ads on websites if there is a direct relationship between costs and results. […]

The “battle of the brands” hurts consumers by driving up prices. Sales reps often must plan whole marketing strategies for their own geographic territories. Answer: TRUE Salespeople can be strategy planners too. Some salespeople are expected to be marketing managers […]

In __________, print ads must be identified so they are not confused with editorial matter. A. USA B. Canada C. New Zealand D. Japan E. Switzerland The appeal that has the most relevance to an economic buyer is: A. “I’m […]

Regarding the roles of marketers and consumers in improving the macro-marketing system: A. Marketing managers should not be expected to improve and extend the range of goods and services they make available. B. The decisions that marketing managers make always […]

Drop-shippers: A. are used because it is cheaper for producers to ship to them by rail and let the drop-shipper drop the products off at local retailers with small trucks. B. never take title to the products they sell. C. […]

When Hallmark designs its website so that a teenage girl can send a theme card to her boyfriend’s cell phone, what is the primary segmenting dimension that Hallmark is using? A. Rate of use B. Age C. Family size D. […]

Which of the following objectives of a business is the most important? A. To engage in some specific business activity which will perform a socially and economically useful function. B. To develop an organization to carry on the business and […]

The Federal Trade Commission can require firms to use “corrective advertising” or “affirmative disclosures,” if it decides a particular advertisement is unfair or deceptive. The introduction of a totally new product idea would present a greater challenge in coordinating the […]

A company with a large product assortment might A. have many product lines with little selection in each. B. have a single product line. C. have many individual products. D. All of these choices are correct. Planning marketing strategies for […]

Which of the following statements about customer value is True? A. Building relationships with customers means providing customer value before, but not after the purchase of a product or service. B. Retaining current customers is usually less costly than taking […]

Product class does not vary by country. “Demand-backward pricing” involves a producer estimating an acceptable final consumer price and working backward to determine what the producer can charge in the channel. Answer: TRUE Demand-backward pricing is setting an acceptable final […]

American Airlines maintains a frequent flier loyalty program that allows members to accumulate 25,000 miles and then redeem these miles for a free round-trip ticket. This is a(n): A. Introductory price deal. B. F.O.B. discount. C. Cash discount. D. Cumulative […]

Customer service guarantees are becoming less common because service companies can’t live up to their promises. Laws such as the Pure Food and Drug Act were passed because pro-competition legislation did not protect consumers very well in some areas. Answer: […]

A prepared sales presentation: A. is the best approach for most selling situationssince the company can control what the sales rep says. B. usually involves many questions, to be sure each customer’s needs are fully understood. C. is common with […]

A marketing manager might offer a cash discount to channel members to: A. increase sales during a slow period. B. encourage buyers to pay their bills quickly. C. reduce shipping or selling costs. D. encourage them to buy in larger […]

The Sherman Act sought to: A. prevent monopolies or conspiracies in restraint of trade. B. establish the Federal Consumer Protection Agency. C. eliminate price differences among different competing suppliers. D. prevent fraud on the Internet. E. restrict importing into the […]

GE’s planning grid approach A. doesn’t work because different managers usually come to different conclusions given the subjective evaluations involved. B. is really the same thing as the total profit approach. C. overemphasizes short term profitability. D. is superficial because […]

On average, U.S. corporations spend only about 2.5 percent of their sales on advertising. Answer: In the U.S. about three-fourths of new retailing ventures fail during the first year. Answer: TRUE In the United States about three-fourths of new retailing […]

Which of the following is most consistent with the scientific method approach to marketing research discussed in the text? A. “We continually survey our customers because the results give us good ideas for hypotheses.” B. “Once we interpret the data, […]

The sequence of markups firms use at different levels in a channel is referred to as a A. market sequence. B. markup chain. C. markup margin. D. standard markup. E. markup channel. Terry Harter is marketing manager for United Tools […]

The owner of the new Sharp Scissors hair salon gave coupons to potential customers walking by her store to stimulate interest and trial of her new hair salon. The coupons are an example of A. advertising. B. publicity. C. sales […]

Ford Motor Co. asks members of its target market to rate its cars and those of General Motors and Chrysler on a 7-point scale in terms of two dimensions (comfortable seats and engine power) so that it can establish a […]

A _____ is a systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function and of the organization, methods, procedures, and people employed to implement the policies. A. benchmarking study B. marketing audit […]

On his way to a GM dealership to pick up a new truck he has purchased, Ian Mann hears a Ford ad that says that Ford trucks have more power than Chevy trucks. Ian thought that the ad said that […]

Data that has already been collected or published is: A. useful data. B. secondary data. C. primary data. D. free data. E. rarelyif everuseful for marketing decision making. Coca-Cola runs an advertising campaign on morning radio shows encouraging current customers […]

If a Universal computer monitor breaks while it is still under warranty, someone needs to get it to the repair center. In this case, Universal will need: A. reverse channels. B. multichannels. C. intensive distribution. D. exclusive distribution. E. selective […]

Regarding adoption curve groups, which of the following is TRUE? A. By the time the early majority buy a product it is usually in the market maturity stage of the product life cycle. B. The early adopters have many contacts […]

As marketing managers do more promotion and selling over the Internet, it is critical that information technology systems be robust from a security standpoint. “Mass marketers” like Target usually try to aim at clearly defined target markets. Answer: TRUE Unlike […]

In the U.S., almost as many people are employed in sales work as they are in advertising. Most purchasing managers use search engines as their FIRST step to satisfy new or unfamiliar questions. Answer: TRUE Most purchasing managers start with […]

At the Comfort Inn Web site, a customer can create an account with his preferences for a smoking or non-smoking room, the type of pillows he likes, early or late check-in and check-out, and his room location. The hotel keeps […]

Marketing discourages the development and spread of new ideas, goods, and services. Answer: According to the text, markup (percent) means percentage of cost unless otherwise stated. Answer: FALSE Unless otherwise stated, markup (percent) means percentage of selling price. In the […]

Rob Rose sat back to review the portfolio of products his company, Wire Products Inc. (WPI), has in its product line. The company specializes in making various products for consumer and industrial uses from hard laminated wirecoated with special paints. […]

A firm that adopts the “marketing concept” will aim all its efforts at satisfying customers, while trying to make a profit. Answer: It is easier for a marketer to work with existing attitudes than to try to change them. Answer: […]

The definition of quality focuses on the producer. Pricing a product sold in a foreign market lower than the cost of producing it is called dumping. Answer: TRUE Dumping is pricing a product sold in a foreign market below the […]

Pushing (a product through a channel) means using normal promotion effort to help sell the whole marketing mix to intermediaries. While excess capacity can be costly, it can be a part of a sensible plan for preventing lost sales if […]

A hardware wholesaler that buys nails from a manufacturer and then sells them to retail hardware stores is a merchant wholesaler. The U.S. auto industry has become much more marketing-oriented since Henry Ford introduced the Model T. Answer: TRUE Henry […]

What does the AIDA concept stand for? A. Attention, Interest, Desire, Action B. Alertness, Interest, Develop, Appeal C. Attention, Involvement, Desire, Action D. Alertness, Involvement, Desire, Appeal E. Action, Involvement, Desire, Attention When Chase Bank mails a 30-day offer for […]

An economic system in which government officials determine production levels is known as: A. pure subsistence. B. macro-marketing. C. market-directed. D. production-oriented. E. command. Which of the following BEST describes what is necessary for a country’s MACRO-marketing system to be […]

The text suggests that a “channel captain” should be: A. a strong wholesaler. B. a market-oriented producer. C. a large retailer. D. Any of thesei.e. whoever can provide leadership. “Push money” is most likely to be offered to: A. cosmetics […]

A warranty must be available for inspection before a purchase is made. Answer: Micro-marketing often does cost too much because many firms improperly blend the four Ps and misunderstand both their customers and the market environment that affects their operation. […]

Different purchase situations may require different marketing mixes, even though the same target market is involved. A S.W.O.T. analysis identifies the ‘special weapons or tactics” used by the competitor in a product-market that has the most profitable marketing mix. Answer: […]

Almost every business transaction in our modern economy involves an exchange of money. Personal selling is important for new unsought products, but it tends not to be important for regularly unsought products. Answer: FALSE Regularly unsought products are products like […]

Direct spoken communication between sellers and potential customers is personal selling. Answer: The AIDA model focuses on markets as a whole while the adoption curve model focuses on individuals. Answer: FALSE The AIDA model looks at individuals. The adoption curve […]

Regarding new-task organizational buying, which of the following persons is LEAST likely to be involved? A. A competitor’s purchasing manager. B. A purchasing manager. C. A production line supervisor. D. The company president. E. A research assistant. Leader pricing: A. […]

As output increases, average cost decreases continually because A. average variable cost per unit is increasing. B. average fixed cost per unit is decreasing. C. total variable cost is increasing. D. total variable cost is decreasing. E. total fixed cost […]

Another term for direct marketing is: A. integration. B. mass communication. C. publicity. D. direct-response promotion. E. sales promotion. Manufacturer brands are also called ___________. A. dealer brands B. global brands C. national brands D. private brands E. store brands […]

Choosing an indirect channel probably will be better than a direct channel if a producer wants to: A. provide special technical service. B. make it easier to do marketing research. C. be more sensitive to coming changes in customer needs […]

Operational linkages are A. direct ties between the internal operations of buyer and seller firms. B. changes in a firm’s product or procedures that are unique to its relationship partner. C. connections that outline contractual obligations. D. services that link […]

When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of: A. Vertical integration. B. Sorting. C. Bulk-breaking. D. […]

Raw materials are unprocessed expense items such as farm products and natural products. The American economy and most other Western economies are completely market-directed. Answer: FALSE The American economy and most other Western economies are mainly market-directed, but not completely. […]

A marketing dashboard displays up-to-the-minute marketing data in an easy-to-read format. Facebook, FourSquare, and LinkedIn are all examples of publicity tools for interactive communication between a company and final consumers or business customers. Answer: TRUE Facebook, FourSquare, and LinkedIn are […]

The main function of a “distribution center” is to speed the flow of goods and avoid unnecessary storage. According to the text, consumer buying decisions are influenced by economic needs, psychological variables, social influences, and the purchase situation. Answer: TRUE […]

Advertising A. always results in higher prices for products. B. is a waste of resources. C. costs so much that it reduces the chance to achieve economies of scale in production. D. guarantees a product’s success. E. None of these […]

By differentiating the marketing mix to do a better job meeting customers’ needs, the firm builds a competitive advantage. A consumer’s total cost of shopping on the Internet includes delivery costs in addition to purchase price. Answer: TRUE Many online […]

The order of the steps in the learning process is: A. drive, cue, response, reinforcement. B. cue, response, drive, reinforcement. C. cue, response, reinforcement, drive. D. drive, response, reinforcement, cue. E. reinforcement, drive, cue, response. According to the text: A. […]

Salespeople usually earn more than top management. Answer: Customer lifetime value involves a financial analysis that considers all of a customer’s purchases over their lifetime. Answer: TRUE The total stream of purchases that a customer could contribute to the company […]

The research proposal may include information about all of the following except A. what the costs will be. B. who will analyze the data. C. what data will be collected. D. how long the process will take. E. what the […]

________ offer “hard goods” at substantial price cuts to customers. A. Supermarkets B. Discount houses C. Supercenters D. Mass-merchandisers E. Convenience stores When a supermarket manager decides to set up an end-of-aisle display for 12-pack containers of Coke Zero, this […]

A producer is likely to focus its promotion effort on stimulating primary demand at what stage in the product life cycle? A. Market introduction B. Market growth C. Market maturity D. Sales decline E. When selective demand is over. Which […]

More money (in the U.S.) is spent on advertising than on sales promotion. Fad products are characterized by popular styles and they appeal to the mass market. Answer: FALSE A fad is an idea that is fashionable only to certain […]

Apple’s Genius Bar is a good example of a company offering its customers “branded services.” Firms that are described by NAICS code 3152 are more similar than firms described by NAICS code 31. Answer: TRUE The NAICS code breakdowns start […]

Direct-response promotion usually relies on a customer relationship management database to target specific prospects. The mass-customization approach is not useful if a firm wants to focus on a particular market segment. Answer: FALSE With the mass-customization approach, a firm may […]

Selective distribution is growing in popularity because it provides 100 percent coverage of the market. In general, most sales presentations follow the sequence of stages in the AIDA model. Answer: TRUE Most sales presentations follow the AIDA sequence. It can […]

The marketing strategies for the two shoe retailers Payless and Zappos are very different but both are successful. Many of the people affected by a new strategy may not be under the control of the marketing manager. Answer: TRUE People […]

The president of a major airline makes telephone calls to the top executives of several other airlines asking them to “hold the line” and refrain from offering discounts on fares for several key routes in order to improve profit margins. […]

Personal selling and advertising are both forms of sales promotion. Motivation, perception, learning, attitudes, trust, and lifestyle are psychological variables which affect consumer buying. Answer: TRUE Motivation, perception, learning, attitude, trust, and lifestyle are some of the psychological variables which […]