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:
There is only one price that will be profitable for firms with down-sloping demand
curves.
Answer:
Manufacturers usually operate sales branches in areas where sales potential is very
low-because intermediaries are not interested in serving such markets.
Answer:
Compared to other innovations, firms have been relatively slow to adopt e-commerce.
Answer:
Uniform delivered pricing is most commonly used when transportation costs are
relatively low.
Answer:
A firm can lose all rights to a brand name if the name becomes a common descriptive
term for that kind of product.
Answer:
Hypotheses are educated guesses about the relationships between things or about what
will happen in the future.
Answer:
One of the difficult things about segmenting is that not every customer will neatly fit
into some market segment.
Answer:
Institutional advertising emphasizes a particular product and plays down the name of
the company.
Answer:
The physical distribution concept focuses on lower costs and better service to increase
customer value.
Answer:
A manufacturer may be forced to use multichannel distribution because a big retail
chain wants to deal directly with it instead of wholesalers.
Answer:
The early majority avoid risk by waiting until many early adopters have tried a
product-to see if they liked it.
Answer:
Incentives that just focus on short-term sales objectives may not motivate sales reps to
develop long-term, need-satisfying relationships with their customers.
Answer:
The mass-merchandising concept means that retailers can succeed by selling a large
volume of merchandise to a target market at low prices.
Answer:
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:
Cash-and-carry wholesalers are limited-function wholesalers who do not grant credit,
but otherwise operate like service wholesalers.
Answer:
The term “marketing orientation” means making products that are easy to produce and
then trying to sell them.
Answer:
High markups always mean big profits.
Answer:
A producer who wants to reach certain customers may have no choice about which
wholesaler to use.
Answer:
A firm with a “competitive advantage” has a marketing mix that the target market sees
as better than a competitor’s mix.
Answer:
Gen X is smaller in numbers as compared to the boomers that came before.
Answer:
Ownership of patents, a familiar brand name, and financial strength are some of the
many resources of a firm that a manager should evaluate when searching for new
opportunities.
Answer:
Motivation theory suggests that a consumer would not try to satisfy physiological and
safety needs until social and personal needs have been completely satisfied.
Answer:
Retail order getters are usually needed for unsought consumer products, and are
desirable for heterogeneous shopping products as well.
Answer:
Not taking advantage of cash discounts may have the same effect as paying a fairly
large “interest charge.”
Answer:
Salespeople usually earn more than top management.
Answer:
A good marketing plan will work well throughout the different stages of the product life
cycle.
Answer:
Retailers who carry any product line that will sell profitably are practicing ‘scrambled
merchandising.”
Answer:
Qualitative research seeks clear yes or no answers.
Answer:
The marketing management process consists of (1) planning marketing activities, (2)
directing the implementation of the plans, and (3) controlling these plans.
Answer:
Shopping products that a customer sees as basically the same and wants at the lowest
price are homogeneous shopping products.
Answer:
Which of the following is NOT a current trend that is affecting marketing strategy
planning?
A. more attention to targeted media
B. lower stock turns on higher margin items
C. slower real income growth in U.S.
D. growth of mass-merchandising
E. growth of larger, more powerful retail chains
Answer:
Each of the following businesses is likely to have costs under 5 percent of sales
EXCEPT:
A. import agent for rare ceramic works
B. manufacturer’s agent for plastics producers
C. selling agent for musical equipment
D. single-line wholesaler of industrial tools
E. export cyberbroker for handmade carpets
Answer:
It is usually most economical to ship bulky nonperishable items, such as coal and iron
ore, by
A. water.
B. pipeline.
C. truck.
D. air.
E. None of these is a good answer, since the cost of shipping a product usually does not
vary from one mode to another.
Answer:
Honda requires its brake suppliers to deliver parts to its production plants three hours
before the parts are scheduled to be installed in a new car. This is an example of which
logistics activity?
A. EDI
B. PD concept
C. Piggyback
D. Containerization
E. JIT
Answer:
A typical break-even analysis assumes that:
A. the total revenue curve is a straight line.
B. the demand curve faced by the firm is horizontal.
C. the average variable cost is the same at different levels of output.
D. profits will grow continually beyond the break-even point.
E. All of these are assumptions of a typical break-even analysis.
Answer:
Which of the following is NOT a psychological variable?
A. Attitudes
B. Social class
C. Motivation
D. Learning
E. Perception
Answer:
You have just been asked by your manager to compile data on firms in California that
have a specific 4-digit NAICS code. You should know
A. that there are no 4-digit NAICS codes.
B. that there is only one firm to find, since each firm has its own 4-digit NAICS code.
C. that it is possible that no data will be available, even if there is one large firm in
California in that 4-digit industry.
D. that she is talking about the New Auto Industry Classification Survey.
E. that none of these alternatives is correct.
Answer:
The text stresses that:
A. advertising and selling are not really part of marketing.
B. marketing is nothing more than a set of business activities performed by individual
firms.
C. marketing techniques have no application for nonprofit organizations.
D. marketing is a social process and a set of activities performed by organizations.
E. a good product usually sells itself.
Answer:
Which of the following is NOT an economic need?
A. Dependability in use
B. Hunger
C. Economy of use
D. Convenience
E. Efficiency in use
Answer:
During the purchase of janitorial services for a new building, Teresa has responsibility
for working with suppliers and arranging the terms of the sale. In this role, Teresa
appears to be acting as
A. a gatekeeper.
B. a decider.
C. a buyer.
D. a user.
E. an influencer.
Answer:
Of the following headlines from a business magazine, which is most likely to be about a
macro-marketing topic?
A. “Chinese Women Demand More Luxury Goods.”
B. “Girl Scouts Organize Nationwide Cookie Sale.”
C. “L’eggs Sells Direct in Brazil and Argentina.”
D. “Frito-Lay Offers New Low-Fat Products.”
E. “Coke Losing Beverage Sales in India to local brands.”
Answer:
Which one of the following statements is true of outsourcing?
A. Outsourcing tends to increase operational and recruitment costs.
B. Outsourcing has no effect on a company’s efficiency.
C. In outsourcing, in-house professionals are hired to perform tasks.
D. Outsourcing involves the free exchange of services and resources between
organizations in the same country.
E. Outsourcing involves buying professional services outside the firm.
Answer:
All of the following statements about manufacturers are accurate except:
A. large manufacturers are few in number yet produce the highest percentage of value
added within the manufacturing industry.
B. most U.S. factories operate in large metropolitan areas.
C. the greatest growth in manufacturing has occurred in countries where labor is cheap.
D. NAICS codes help marketers classify different types of manufacturing businesses.
E. manufacturing output in the United States is shrinking.
Answer:
Teenagers:
A. Have no influence on the buying behavior of their parents.
B. Are not an attractive market because they do not spend much money.
C. Have become a target for many firms.
D. Have essentially the same buying habits as they had before reaching their teen years.
E. None of these alternatives is correct.
Answer:
Traditionally, auction companies would MOST likely be used for:
A. children’s clothing.
B. sports equipment.
C. antique furniture.
D. small appliances.
E. industrial chemicals.
Answer:
Regarding our MACRO-marketing system:
A. consumers would be better off if our macro-marketing system were in pure
competition-rather than monopolistic competition.
B. marketing makes people buy things they don’t need.
C. advertising can actually lower final consumer prices-if it helps achieve economies of
scale.
D. monopolistic competition leads to higher prices, restriction of output, a waste of
resources, and greater consumer dissatisfaction.
E. All of these alternatives are correct.
Answer:
Which of the following statements about Place is not true?
A. Most consumer products move from producer to intermediaries to final customer.
B. A series of participants in the flow of goods and services from producer to final
customer is called a channel of distribution.
C. There is always one Place arrangement that is “best” for a product.
D. Intermediaries develop to adjust discrepancies in quantity and assortment.
E. All of these statements about Place are true.
Answer:
_____ is a promotion activity that tries to spark immediate interest in the consumer.
A. Personal selling
B. Advertising
C. Publicity
D. Sales promotion
E. Press release
Answer:
A reduction from list price given to intermediaries to get shelf space for a product is a:
A. shelf allocation.
B. brokerage allowance.
C. trade allowance.
D. stocking allowance.
E. push money allowance.
Answer:
Which of the following is NOT an example of an organizational buyer?
A. A government buyer purchasing a new desk for the mayor’s office
B. A woman buying cookware to sell to her friends and neighbors
C. A sales rep buying a new necktie to make a good impression
D. A wholesaler buying a delivery truck
E. None of these is a good example of an organizational buyer.
Answer:
You have several umbrellas in your closet at home, but when it’s raining hard and you’re
stranded on Market Street in San Francisco you need a new umbrella fast. What type of
consumer product is your new umbrella?
A. Emergency product
B. New unsought product
C. Staple
D. Specialty product
E. Shopping product
Answer:
Which stage of the product life cycle is the largest profit stage for companies?
A. Market Introduction
B. Market Maturity
C. Stagnation
D. Sales Decline
E. Market Growth
Answer:
Alex’s Knot Shop prices its ties at $5 intervals from $10 to $25 because most customers
find these prices appealing and easier to compare. This is:
A. prestige pricing.
B. penetration pricing.
C. price lining.
D. odd-even pricing.
E. value in use pricing.
Answer:
The whole set of beliefs, attitudes, and ways of doing things of a reasonably
homogeneous set of people is a(n):
A. tradition.
B. class.
C. society.
D. culture.
E. ethnicity.
Answer:
Branding can help BRANDERS because it:
A. may lower promotion costs.
B. can improve the company’s image.
C. encourages repeat buying.
D. may develop customer loyalty.
E. All of these alternatives are correct.
Answer:
As a product moves into the market maturity stage of the product life cycle:
A. Consumers tend to view products as being more similar.
B. The competitive situation moves toward monopoly.
C. Promotion emphasizes informing consumers more than persuading them.
D. There is less consideration of competition in setting prices.
E. None of these alternatives is true.
Answer:
Dividing large quantities into smaller quantities as products get closer to the final
market is called _____.
A. accumulating
B. bulk-breaking
C. sorting
D. assorting
E. dividing
Answer:
An emphasis on a single country’s interests before everything else is known as
A. socialism.
B. democracy.
C. nationalism.
D. capitalism.
E. entrepreneurship.
Answer:
The __________ involves developing a good understanding of the individual
customer’s needs before trying to close the sale.
A. Selling formula approach
B. Consultative selling approach
C. Prepared sales presentation
D. Fixed sales presentation
E. Differentiated value approach
Answer:
The packaging design for a new flavor of Ben and Jerry’s ice cream is an aspect of
which component of the marketing mix?
A. Place
B. Price
C. Product
D. Promotion
Answer:
The job of product or brand manager is often created when a firm:
A. has many different kinds of products or brands.
B. wants to eliminate the job of the research and development department.
C. wants to eliminate the job of sales manager.
D. wants to do away with product “champions.”
E. None of these alternatives is correct.
Answer:
A ______________ market is a market with broadly similar needs and sellers offering
various-and often diverse-ways of satisfying those needs.
A. planned
B. target
C. central
D. generic
E. relevant
Answer: