The supply chain begins with the movement of finished products through the marketing
channel to customers.
a. True
b. False
Your company’s leathergoods are very well received in the marketplace. But you still
have not been able to resolve the issue of packaging. These bags and briefcases have to
be packaged substantially so your customer receives a flawless product, but you have to
come up with a solution that will allow the consumer to recycle all that packaging in
some way. You decide to solicit suggestions from the staff on how to either implement a
recycling program or devise some other packaging methodology that is environmentally
friendly. What marketing channel are you managing? Select the best answer from the
choices below.
a. reverse channel
b. dual channel
c. logistic channel
d. distribution channel
e. direct channel
Every social media channel has an intended use by its community.
a. True
b. False
Tru-Shine is a cleaning company in the United States that offers various cleaning
products and services. After gaining popularity in the United States, the company
decided to expand its business in other North American nations. The company entered
into an agreement with some local cleaning companies in Canada where the local
companies would sell its products and services under the same trade name. Tru-Shine
also agreed to provide the training and necessary equipments and supplies to the local
companies. In this example, the strategy used by Tru-Shine for entering foreign markets
is an example of _____.
a. sole sourcing
b. value engineering
c. franchising
d. direct investment
It is crucial for marketers to focus their marketing strategies on opinion leaders in a
group as opinion leaders:
a. limit their purchases to the products and services typical of the social class they
belong to, rather than imitating the reference group.
b. represent the only medium to carry information about products to general public.
c. represent the trendsetters who purchase products before others in the group and then
influence the buying decisions of other group members.
d. possess the highest purchasing power in a group.
Which of the following modes of transportation controls the largest share of the freight
business as measured by ton-miles?
a. Railroads
b. Water carriers
c. Motor carriers
d. Pipelines
In a marketing context, the immediate or expected change in consumer behavior that
results from experience is called a _____.
a. drive
b. script
c. perception
d. learning
Which of the following is TRUE regarding online B2C shoppers?
a. Many online shoppers are loyal to one single site
b. Sales of tools such as hammers and power saws have increased in the last few years
c. More than 90% of Internet users make at least one purchase online each month
d. Only 20% of Internet users conduct research on products online before purchasing
While calculating the accounts receivable turnover ratio, sales to buyers using credit
cards like MasterCard and Visa are counted as credit sales because the seller is
providing credit to the buyer who buys without cash.
a. True
b. False
Which of the following is most likely to be true of hypermarkets?
a. They are somewhat smaller than the similar supercenters, averaging 180,000 square
feet to the supercenters’ 245,000 square feet.
b. They initially started as stores selling mostly electronic appliances but now sell soft
goods, foods, and furniture.
c. They are giant one-stop shopping facilities that offer wide selections of grocery and
general merchandise products at discount prices.
d. They carry out promotion to their customers using direct mail and sell from
showrooms that display samples.
A retailer starts to define its marketing strategy by selecting its inventory management
strategy.
a. True
b. False
Some of the key elements of business-to-business alliances include:
a. They are less formal partnership arrangements.
b. They are best formed between businesses of the same size.
c. For efficiency purposes, the partners should be located near each other.
d. They are flexible, short-term partnership arrangements.
e. The partners can establish a new business unit in which each takes an ownership
interest.
A local food store can be regarded as a convenience retailer.
a. True
b. False
Many of the eastern European currencies are considered as soft currencies because:
a. they do not depreciate against other currencies.
b. they cannot be readily converted into euros or dollars.
c. they provide long-term stability in terms of its purchasing power.
d. they serve as a reliable store of value.
Tim Howard, the goal keeper for the U.S. Men’s soccer team, has just signed a major
marketing deal with your company. You plan to utilize him in a variety of marketing
campaigns leading up to the 2018 Men’s Soccer World Cup in Russia. Which one of the
following categories of nontraditional marketing will you emphasize in this situation?
a. Sports marketing
b. Person marketing
c. Social media marketing
d. Place marketing
e. Event marketing
Traditional economic theory considers both costs and demand in determining an
equilibrium price.
a. True
b. False
Which of the following is most likely to help marketers to segment organizational
buyers by purchase categories?
a. Business process reengineering
b. Value engineering
c. Management by objectives
d. Customer relationship management
The process of communicating promotional messages begins with encoding.
a. True
b. False
A major advantage of advertising is the ease of measuring advertising effectiveness.
a. True
b. False
Frequency marketing programs are promotional efforts sponsored by organizations that
solicit involvement by individuals who share common interests and activities.
a. True
b. False
When the elasticity of demand or supply is greater than 1.0, that demand or supply is
said to be:
a. elastic.
b. stagnant.
c. marginal.
d. inelastic.
Every social network has its own search engine, which allows users to search for topics
that interest them.
a. True
b. False
In an effort to better structure the purchasing process, a company may use
_____________ to standardize buying decisions. A skilled marketer understands the
client’s ____________ and realizes that many companies purchase from several
vendors, so this pattern is taken into account when the marketer formulates a marketing
proposal.
a. systems integration; interpersonal influences
b. organizational factors; systems integrations
c. systems integration; organizational factors
d. merchandisers; environmental factors
e. interpersonal influences; organizational factors
A positioning map provides a valuable tool to help managers position products by
graphically illustrating consumers’ perceptions of competing products within an
industry.
a. True
b. False
As a field salesperson for a firm that builds custom software for large corporations,
Fred relies heavily on consultative selling. His reasons include all of the following
except:
a. Fred’s product is likely to be complicated and high-priced
b. His buyers are likely to be knowledgeable
c. His buyers are likely to be cost-conscious
d. He wants to create long-term customers
e. To meet his quota, he aims to close quick sales
Capodice Foods is wholesaler specializing in fresh produce and makes regular, daily
deliveries to grocery stores and restaurants. Capodice Foods is an example of a _____
wholesaler.
a. truck
b. rack jobber
c. merchant
d. commission
A local newspaper is planning to come up with a special series on the growth of
entrepreneurship within the community. Each week an article featuring a different
business owner and his or her success story will be published. For the featured business
owners, this type of promotion would constitute _____.
a. sales promotion
b. publicity
c. trade promotion
d. direct selling
Chain stores are groups of retail outlets that operate under central ownership and
management and handle the same product lines.
a. True
b. False
Supplies are also called MRO items.
a. True
b. False
As defined in the text, consumer behavior is a function of the interaction of
interpersonal influences and personal factors. Which of the following is an example of
an interpersonal influence?
a. culture
b. attitudes
c. learning
d. perception
The self-image is the image to which an individual aspires and hence, it serves as a
personal set of objectives.
a. True
b. False
The Foreign Corrupt Practices Act makes it illegal to bribe a foreign official in an
attempt to solicit new or repeat sales abroad.
a. True
b. False
Explain the importance of the service sector in the U.S. economy.
Define benchmarking. Describe the benchmarking process.
What is a marketing mix? In order for a product to succeed, what can be said about the
variables in the marketing mix?
What is the major difference between the sales era and marketing era?
What are the different methods employed by marketers to obtain customer feedback?
Define lifetime value of a customer. How has Apple, with the development of the iPod
product line and iTunes software, gained a competitive advantage over competitors?
Will Apple experience a higher or lower lifetime value of a customer and why?
ANS: The lifetime value of a customer is the measure of the revenue and intangible
benefits a customer brings to the organization over the average lifetime, minus the
investment that the firm has made to attract and keep the customer.
Apple has developed hardware and proprietary software that revolutionized the way
that music, purchased or downloaded, can be stored, catalogued and replayed. Because
of the digital file structure, only Apple products can play the software. This links the
hardware sales to the repeat purchases of music through the software, increasing the
lifetime value of the customer.
What are the three main objectives of packaging?
What ethical issues might arise when developing a product strategy?
Describe the role of distribution channels in a firm’s marketing strategy.
Compare and contrast wholesalers and agents/brokers.
What is cohort effect? What is the current cohort called?
How can firms build customer loyalty?
How do retailers select target markets?
Briefly describe the three basic sales tasks.
Define the terms inflation and deflation. Discuss their effects on the economy with the
help of reallife examples.
Define market segmentation. Discuss its role in developing an effective marketing
strategy.
Explain the difference between a monopoly and an oligopoly. What creates oligopolies?
Explain how store atmospherics help retailers to attract customers.
Summarize the economic factors that influence marketing decision making and
consumer buying behavior.