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 faces no real competition.
Answer:
Online auctions (on the Internet) are becoming very popular as a way to determine how
much customers are willing to pay for a product.
Answer:
Digital self-service increases costs.
Answer:
Spying on competitors to obtain trade secrets, raises moral issues but is not illegal.
Answer:
“Supercenters” are very large stores that specialize in selling a big variety of
infrequently purchased products that would otherwise be hard for consumers to find.
Answer:
Company objectives should shape the direction and operation of the whole business.
Answer:
Scrambled merchandising means mixing product lines for higher profits.
Answer:
A markup is the dollar amount added to the cost of products to get the selling price.
Answer:
Intensive distribution is selling through only those intermediaries who will give the
product special attention.
Answer:
A marketing plan is a written statement of a marketing strategy and the time-related
details for carrying out the strategy.
Answer:
Even though some sales tasks can be handled effectively and economically using
technology, a sales rep is still needed to build relationships.
Answer:
Telemarketing can help a firm extend its personal selling efforts to new target markets
without investing a lot of time and money.
Answer:
The “marketing concept” means that a firm emphasizes attracting new customers above
all other objectives.
Answer:
Purchases by small service firms are often handled by whoever is in charge or their
administrative assistant.
Answer:
How much a nation’s money is worth in some other nation’s currency can impact the
price level in both local and international markets.
Answer:
Multiple buying influence means that several people except top management share in
making a purchase decision.
Answer:
Manufacturers’ sales branches operate like wholesalers, but the U.S. Census Bureau
does not consider them wholesaling establishments because they do not involve a
separate warehouse.
Answer:
A marketing manager can use a DSS to conduct sales and perform analyses that show a
more detailed breakdown of what’s happening.
Answer:
Producers of business products generally spend a larger percent on advertising than do
producers of consumer products.
Answer:
The sole objective of leader pricing is to sell large quantities of the leader items.
Answer:
Digital self-service lowers costs.
Answer:
A low stockturn decreases inventory carrying cost and frees up working capital.
Answer:
A firm may introduce or withdraw a product during any stage of the product life cycle.
Answer:
At least 75 percent of all U.S. freight moves, at least part of the way, by trucks.
Answer:
Sales promotion is special advertising or personal selling that is aimed at intermediaries
in the channel.
Answer:
It is always illegal to sell the same products to different buyers at different prices, even
if the price differences are based on cost differences.
Answer:
Exporting is sometimes just a way for a firm to get rid of surplus products.
Answer:
Any series of firms (or individuals) from producer to final user or consumer is a
channel of distribution.
Answer:
Telephone surveys are practical if the information needed is not too personal.
Answer:
Which of the following would be considered a retailing “category killer”?
A. Office Depot (office supplies)
B. PayLess (drugstores)
C. Lowe’s (home improvements)
D. Barnes and Noble (books)
E. all of these are “category killers.”
Answer:
When Procter and Gamble offers both Pantene and Vidal Sassoon shampoos to its
customers, which target market approach is Procter and Gamble using?
A. Multiple
B. Single
C. Combined
D. Generic
E. Clustering
Answer:
If Penn Hills Mfg. Corp. gives the Johnstown Distributing Co. the exclusive right to
distribute Penn Hills’ products in Ohio-with the understanding that Johnstown can’t sell
Penn Hills’ products outside Ohio or to other wholesalers in Ohio, this arrangement:
A. Would definitely be ILLEGAL because the courts have ruled that all vertical
arrangements between producers and intermediaries are illegal.
B. May or may not be LEGAL-the courts would weigh the possible good effects of this
vertical arrangement against possible restrictions on competition.
C. Would definitely be LEGAL because the courts have ruled that all vertical
arrangements between producers and intermediaries are legal.
D. Would definitely be ILLEGAL because the courts have ruled that all horizontal
arrangements between competitors are illegal.
E. Would definitely be LEGAL because the courts have ruled that all horizontal
arrangements between competitors are legal.
Answer:
Supermarkets are
A. stores offering “hard goods” at substantial price cuts to customers.
B. large, self-service stores with many departments that emphasize ‘soft goods” and
staples but still follow the discount house’s emphasis on lower margins to get faster
turnover.
C. large stores specializing in groceries with self-service and wide assortments.
D. very large stores that try to carry not only food and drug items but all goods and
services that the consumer purchases routinely.
E. a convenience-oriented variation of the conventional limited-line food stores.
Answer:
Which of the following is LEAST likely to be an example of routinized response
behavior?
A. Buying a Coke.
B. Purchasing a new pair of shoes.
C. Buying soap at a convenient supercenter.
D. Buying a burrito at Taco Bell.
E. Filling the car with gasoline.
Answer:
Consumers usually want to shop for milk, meat, vegetables, and fruits at one convenient
location. Grocery stores that offer all of these products help to alleviate this
___________.
A. discrepancy of quantity
B. accumulation deficit
C. sorting error
D. discrepancy of assortment
E. bulk-breaking
Answer:
_____ means offering a specific price for each possible job rather than setting a price
that applies for all customers.
A. Price lining
B. Odd-even pricing
C. Product bundle pricing
D. Bid pricing
E. Price leading
Answer:
The segmenting step of the segmentation process
A. brainstorms possible marketing mixes.
B. fits potential customers neatly into market segments.
C. disaggregates all possible needs.
D. involves selecting a target marketing approach.
E. looks for similarities in needs.
Answer:
Product warranties:
A. must be specific and in writing.
B. can have a positive effect on perceptions of product quality.
C. are governed by the federal Lanham Act.
D. are the same as service guarantees.
E. All of these alternatives are correct.
Answer:
When consumers go to a brick-and-mortar store to inspect a product and then purchase
from an online retailer, this practice is called ______.
A. shop-hopping
B. integrating
C. showrooming
D. arbitrage
E. baiting
Answer:
Scott Paper uses many intermediaries to reach its target markets; Citibank uses none.
Which of the marketing mix variables is being considered here?
A. Penetration
B. Product
C. Promotion
D. Place
E. Price
Answer:
“Retailing” refers to:
A. the sale of products to final consumers.
B. the sale of both business and consumer products.
C. the sale of consumer products to wholesalers, retailers, or final consumers.
D. the performance of regrouping activities.
E. None of these is a good answer.
Answer:
The standardization and grading function of marketing involves:
A. promoting goods and services.
B. collection, analysis, and distribution of marketing information.
C. sorting products according to size and quality.
D. looking for and evaluating goods and services.
E. movement of goods from one place to another.
Answer:
When a consumer has no idea what an RAV4 is, we say that this is an example of:
A. brand recognition.
B. brand nonrecognition.
C. brand insistence.
D. brand preference.
E. brand familiarity.
Answer:
A magazine ad for GEICO car insurance shows the GEICO gecko lying down while the
copy reads, “Don’t take high car insurance rates lying down.” What primary economic
need is being satisfied in this magazine ad?
A. Convenience
B. Improvement of earnings
C. Dependability in use
D. Economy of purchase
Answer:
Which of the following could be considered a part of a retailer’s “Product”?
A. Advice from salespeople.
B. After-sale service.
C. Convenient parking.
D. Width and depth of product assortment.
E. All of these are parts of a retailer’s “Product.”
Answer:
Which of the following statements does not accurately characterize place decisions?
A. Place decisions involve stocking the right quantities of products.
B. Place decisions involve identifying appropriate locations for products.
C. Place decisions must analyze when customers will want or need products.
D. Place decisions typically involve channel partners.
E. Place decisions are easier to change compared to price, promotion, and product
decisions.
Answer:
X-Brand Bikes, a manufacturer of off-road bicycles, carefully developed a strategy for
moving into South America. The strategy had poor results after interest rates and
inflation rose rapidly in most of its South American markets, demonstrating the
influence of the _____ on marketing strategy.
A. economic environment
B. technological environment
C. social environment
D. legal environment
E. political environment
Answer:
The universal functions of marketing
A. are not all needed in market-directed economies.
B. are not all needed in command economies.
C. can be performed by producers, consumers, and a variety of marketing specialists.
D. are performed in the same way in all economic systems.
Answer:
When an Apple customer tells a friend how much she likes her new iPad, what type of
consumer communication is this?
A. Must buy
B. Reminder
C. Pass-along
D. Pioneering
E. Persuading
Answer:
Which of the following products in a supermarket is MOST likely to be an impulse
product?
A. Oranges.
B. Bread.
C. Frozen peas.
D. A child’s toy.
E. Shampoo.
Answer:
A product-market is one in which
A. demand is inelastic.
B. products that are close substitutes for each other compete for customers by trying to
satisfy very similar needs.
C. breakthrough opportunities are no longer possible.
D. one seller has a patent for a superior product and other competitors try to imitate the
leader.
E. All of these alternatives are true.
Answer:
Which of the following is an example of a fixed cost?
A. Wages
B. Outgoing freight
C. Depreciation
D. Sales commissions
E. Packaging material expense
Answer:
Ethnic markets are becoming more important to marketers because
A. the buying power of ethnic submarkets is decreasing.
B. the median age of Asian Americans, African Americans, and Hispanics is much
higher than that of whites.
C. the number of ethnic consumers is growing at a much faster rate than the overall
society.
D. they make a clear segment with similar backgrounds and common language,
religion, and culture.
E. the birthrate of Asian Americans, African Americans, and Hispanics is lower than
that of whites.
Answer:
Nantucket Hammocks, Inc. uses dealer incentives, discounts, and sales contests in order
to encourage retailers to give special attention to selling its products. Nantucket
Hammocks is using
A. exclusive distribution.
B. a corporate channel system.
C. dual distribution.
D. an administered channel system.
E. pushing.
Answer:
Target marketing
A. is a production-oriented approach to marketing.
B. is essentially the same as mass marketing.
C. considers everyone a potential customer.
D. assumes that everyone is the same.
E. specifies some particular group of customers.
Answer:
Merchandising aids and promotional allowances are sales promotion activities aimed at
A. final consumers.
B. company’s own sales force.
C. intermediaries (wholesalers and retailer).
D. final users.
E. buyers.
Answer:
A straight rebuy
A. involves setting product specifications and evaluating sources of supply.
B. occurs when an organization has a new need and the customer wants a great deal of
information.
C. is an in-between process where some review of the buying situation is done.
D. occurs when an organization has a new need but the customer wants only minimal
information.
E. is a routine repurchase that may have been made many times before.
Answer:
The sales analysis of a product revealed that profits were highest when it was initially
introduced into the market with a high selling price. However, the price was gradually
reduced as it started facing competition as substitutes entered the market. This is an
example of a(n) _____.
A. introductory price dealing
B. temporary price cut policy
C. skimming price policy
D. penetration price policy
E. one price policy
Answer:
When segmenting markets, why can’t managers simply choose one or two demographic
characteristics around which to define their target group?
A. It puts marketers at risk of discrimination lawsuits.
B. Customer behavior is too complex to be explained in terms of just one or two
demographic characteristics.
C. Demographic characteristics do not influence buying behaviors.
D. It will fail to produce a homogeneous group.
E. Market segments must be based on three or more dimensions to be valid.
Answer:
Regarding business products,
A. derived demand has little effect on the market for accessory equipment.
B. sellers of accessory equipment usually must face more competitors than sellers of
installations.
C. at any one time there are usually fewer target customers for accessories than for
installations.
D. accessory equipment is not treated as a capital item.
E. special services and advice are more important with accessories than with
installations.
Answer:
Firms that specialize in providing marketing functions other than buying or selling are
known as:
A. suppliers.
B. intermediaries.
C. consultants.
D. agents.
E. collaborators.
Answer:
A Wendy’s fast-food restaurant needs ______________ to serve its customers.
A. merchandisers
B. order takers
C. order getters
D. hucksters
E. supporting salespeople
Answer:
Which of the following observations is false?
A. Competition needs to be considered when adding in overhead and profit for a bid
price.
B. Some sellers fake their records to make costs seem higher than they really are.
C. Negotiated price is a price set based on bargaining between the buyer and seller.
D. Negotiated pricing is rare in situations where the marketing mix is adjusted for each
customer.
E. Negotiated pricing is a demand-oriented approach.
Answer: