BUSMKT 47718

subject Type Homework Help
subject Pages 30
subject Words 5286
subject Authors E. Jerome Mccarthy, Joseph Cannon, William Perreault Jr.

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page-pf1
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
food stores, because convenience is not important to the customer.
Answer:
In monopolistic competition, one firm completely controls a broad product-market.
Answer:
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Cooperative advertising is not very economical-because media rate structures usually
require local firms to pay more for local advertising than the same ad would cost a
national advertiser.
Answer:
Finding attractive opportunities and developing profitable marketing strategies are the
tasks included in the marketing manager's marketing strategy planning job.
Answer:
page-pf3
The term "NAICS" stands for New Auto Industry Classification Survey.
Answer:
According to the text, the U.S. social class system is much more rigid than social
systems in other countries.
Answer:
Although the customer should be the target of all marketing efforts, customers are not
part of a marketing mix.
Answer:
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Family, social class, reference groups, and culture are the psychological variables that
affect a consumer's buying decisions.
Answer:
An advantage of average-cost pricing is that it considers competitors' costs and prices.
Answer:
"Economies of scale" prevent a company from taking advantage of mass production.
Answer:
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Specialty wholesalers usually sell a very narrow range of products and compete with
other wholesalers who have a broader range of products by offering expert technical
help and/or service to their customers.
Answer:
Producers of all kinds of products, especially business/consumer products, have a great
need for order getters.
Answer:
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When the target market is large and spread out, mass selling may be less expensive than
personal selling.
Answer:
According to the text, micro-marketing does NOT cost too much in the United
States-but macro-marketing often DOES cost too much.
Answer:
The idea behind a pulling policy is that customer demand helps to pull the product
through the channel.
page-pf7
Answer:
Relative to most other countries, the U.S. has very strict product liability standards.
Answer:
The largest share of total advertising expenditures in the United States goes for
newspaper advertising.
Answer:
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Whether a particular macro-marketing system is judged fair and effective depends on
the objectives of the society.
Answer:
Brokers usually have a temporary relationship with the buyer and seller.
Answer:
During the sales decline stage of the product life cycle, no firm can earn a profit.
page-pf9
Answer:
Digital products cost more to distribute than physical products.
Answer:
Branding would be more likely to be successful if dependable and widespread
availability of a product is possible.
Answer:
page-pfa
A skimming pricing policy tries to sell to customers who are at the top of the demand
curve first, before aiming for more price sensitive customers.
Answer:
There is no real reason for a firm to use individual brands rather than a family
brand-except to avoid confusion.
Answer:
The Product area of the marketing mix may involve a service and/or a physical good,
which satisfies some customers' needs.
page-pfb
Answer:
At the macro level, consumer satisfaction is difficult to measure and interpret so any
evaluation is in part subjective.
Answer:
In advanced economies, marketing costs only about 10 percent of each consumer's
dollar.
Answer:
page-pfc
Use of the scientific method in marketing research helps managers make the best
decisions possible.
Answer:
Seasonal discounts tend to smooth out sales during the year and therefore permit
year-round operation.
Answer:
The four promotion jobs of the AIDA model are to get Attention, to Inform, to eliminate
Doubt, and to change Attitudes.
Answer:
page-pfd
If a firm's average variable cost is constant per unit, then the firm's average cost
decreases continually as output increases because average fixed cost decreases
continually.
Answer:
In an indirect channel of distribution, both vertical conflict and horizontal conflict may
arise.
Answer:
page-pfe
Agent wholesalers usually have higher operating expenses (as a percentage of sales)
than merchant wholesalers.
Answer:
Nielsen's TV audience research and Arbitron's radio audience research illustrate that
observing is a common research method in advertising.
Answer:
The idea of a decision process implies that consumers always apply rational processes
in their buying decisions.
page-pff
Answer:
A data warehouse is filled with file cabinets and binders where past market research is
stored.
Answer:
Positioning analysis may lead a firm to segmenting, rather than combining.
Answer:
page-pf10
A "Buy American" campaign is an example of:
A. transnationalism.
B. nationalism.
C. environmentalism.
D. consumerism.
E. federalism.
Answer:
Regarding PRODUCT LIFE CYCLES and PROMOTION:
A. During market introduction, the basic promotion objective is to remind.
B. In sales decline, the amount spent on promotion usually increases as firms use
reminder promotion to increase demand.
C. Persuading becomes important in the market growth stage.
D. In market maturity, more competitors enter the market and the promotion emphasis
must now shift to building selective demand for the firm's own brand.
E. None of these is a good answer.
Answer:
page-pf11
Bonafide Electric produces electric motors that power refrigerators, air condition units,
washing machines, and many other electric appliances produced by various
manufacturers. Bonafide Electric is selling
A. raw materials.
B. component parts.
C. MRO items.
D. accessory equipment.
E. installations.
Answer:
Which of the characteristics of a good brand name is missing in the following proposed
name: "Gnucheo" candy?
A. Simple
B. Short
C. Not offensive
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D. Always timely
E. Easy to pronounce
Answer:
____ refers to offering new or improved products for present markets.
A. Diversification
B. Market development
C. Differentiation
D. Market penetration
E. Product development
Answer:
Use this information for question that refer to the Sunny Day Foods (SDF) Case.
For six months, Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing
manufacturer of organic foods. After graduating college, she worked for four years as a
sales rep for a nationally known food company. But, she jumped at the chance when
SDF contacted her about becoming marketing manager for its breakfast foods division,
which sells dry cereals and a pancake mix.
Kim spent the first few months on the job trying to better understand SDF, its product
line, and marketing strategy. She reviewed the company's past marketing research,
commissioned new research, and talked to both consumers and retailers. Now, the CEO
of the company wants her thoughts on what the company's marketing strategy should be
for the next few years.
Her research indicates that among cereal customers, there are at least five segments of
customers who use SDF products.
a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals.
These customers often go out of their way to visit a store with their favorite SDF cereal
and buy only that product at the store.
b) Another segment, the regulars, buys SDF cereals without much thought. For them it
is just part of their routine and, if you ask them why they pick the cereal, they'd say it's
just a habit.
c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They
view all organic cereals as pretty much the same and buy whichever brand seems to
offer the best deal that week.
d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few
years ago the company took a strong stand in a presidential race-and these customers
resented it. Now, they boycott all SDF foods because of that incident.
e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but
who don't have much awareness of particular organic brand names.
In reviewing how SDF currently brands its products, Kim sees that it is using several
different approaches. The Sunny Day Foods brand is used on most products the
company sells. But a few years ago the company brought out an instant organic oatmeal
with the Hot n Healthy name. SDF also makes cereal sold by a health food chain; the
package for that chain uses the store's own name, Nature's Foods, as the brand name for
the cereal.
For which market segment would in-store demonstrations of SDF cereals be most
effective?
A. Loyalists
B. Regulars
C. Deal prone
page-pf14
D. Politicos
E. SDF Who?
Answer:
The Lanham Act:
A. Provides legal guidelines for product warranties.
B. Forces all companies to register their brands.
C. Describes the kinds of marks that can be protected and the methods for doing so.
D. Deals with deceptive product claims and advertisements.
E. Protects consumers against unsafe products.
Answer:
page-pf15
In a typical break-even analysis, a firm's fixed-cost contribution per unit:
A. is the assumed selling price per unit minus the variable cost per unit.
B. is the assumed selling price per unit minus the average fixed cost.
C. usually decreases as the quantity produced increases.
D. is total fixed cost divided by the quantity produced.
E. usually increases as the quantity produced increases.
Answer:
Jake's Auto Repair receives an invoice for some equipment he purchased on credit. The
full face value of the invoice is to be paid within 60 days. However, if it is paid within
10 days, Jake can take a 6 percent discount off the face value of the invoice. Which of
the following notations accurately represents the conditions described above?
A. 24/7, net 6
B. 10/60, net 6
C. 6/10, net 60
D. 60/6, net 3
E. 10/6, net 60
Answer:
page-pf16
Which of the following U.S. antimonopoly laws deals with conspiracy to fix prices?
A. Clayton Act (1914)
B. Magnuson-Moss Act (1975)
C. FTC Act (1914)
D. Sherman Act (1890)
E. Wheeler-Lea Amendment (1938)
Answer:
Overall company objectives should:
A. be specific.
B. focus on returning some profit to the business.
C. be realistic and achievable.
D. be compatible with one another.
page-pf17
E. all of these are correct.
Answer:
Regarding product life cycles, good marketing managers know that:
A. all new brands start off in the market introduction stage.
B. product life cycles can be extended through product modifications.
C. a product must pass through all the product life cycle stages.
D. no strategy planning is needed during the sales decline stage.
E. a firm should use penetration pricing during market introduction, especially if the
cycle is expected to move slowly.
Answer:
Use this information for question that refer to the Yummy Ice Cream case.
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago, the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
Which of the following illustrates communication "noise"?
A. A radio ad for Planet Savers is recorded at a higher volume than the music
B. A consumer waiting in line for an ice cream cone can't see the sign promoting Cherry
Walrus because the store is so crowded
C. A consumer who thinks that environmentally friendly ice-cream is a stupid idea
decides to try the new Planet Savers flavor anyway
D. A TV ad for Yummy Fudge on a Stick features a large group of children singing and
eating Yummy ice cream
E. All of these illustrate "noise"
Answer:
page-pf19
Noncumulative quantity discounts
A. apply only to individual orders.
B. are designed to primarily encourage repeat buying.
C. reduce the customer's cost for additional purchases.
D. tie a buyer to the seller after a single purchase.
E. are never attractive to buyers.
Answer:
A producer of business supplies is using manufacturers' agents to do:
A. merchandising.
B. order-getting.
C. order-taking.
D. technical advising.
page-pf1a
E. supporting activities.
Answer:
A target return figure of zero implies:
A. setting negligible sales targets.
B. setting a price level that will just recover costs.
C. setting a price that helps attain previous year's high profitability.
D. setting a price that would match the industry standard profit margin.
E. setting a price at which competition will be zero.
Answer:
page-pf1b
Which of the following is NOT true regarding international marketing research?
A. A lack of information and knowledge about customers in foreign markets is a key
cause of failures for exporting ventures.
B. Gathering accurate marketing research information in China can be a challenge.
C. Marketing research on overseas markets is often an important factor in international
marketing success.
D. Because there are no multinational research or advertising agencies it is necessary to
identify good local partners.
E. All of these alternatives are true.
Answer:
Sears' Kenmore brand of appliances sold in all Sears stores illustrates two kinds of
brands.
A. dealer and family brands
B. local and national brands
C. generic and family brands
D. licensed and dealer brands
E. manufacturer and family brands
page-pf1c
Answer:
Which of the following would NOT be favorable to successful branding?
A. The product offers superior customer value
B. Product quality fluctuates due to variations in raw materials
C. Dependable and widespread availability
D. Economies of scale in production
E. Favorable shelf locations are available
Answer:
Shipping by air
A. is most useful for smaller, high-value items.
B. generally increases handling costs.
C. is generally the most economical transportation method.
page-pf1d
D. generally increases storing costs.
E. none of these alternatives is correct for shipping by air.
Answer:
When segmenting markets, cost considerations typically encourage a company to
________ and _______.
A. disaggregate; combine segments
B. aggregate; use different segments
C. disaggregate; use different segments
D. aggregate; combine segments
E. disaggregate; use one segment
Answer:
page-pf1e
Which of the following best describes the Product decisions used by Zappos.com?
A. Carries well-known brands
B. Frequent discounting
C. Limited shoe product line
D. Large advertising budget
E. Offers high levels of customer service
Answer:
A marketing manager may ethically and actively seek information about current or
potential competitors by
A. searching a firm's public website.
B. waiting at a landfill for competitors' trash to find copies of confidential company
reports.
C. using computer "hackers" to break into a competitor's computer network.
D. hiring people from competing firms and then asking them confidential information
about the competitor.
E. spying on competitors to obtain trade secrets.
page-pf1f
Answer:
Laurie Michaels just bought a cell telephone for her car after spending several weeks
considering all the possibilities. She likes the new phone, but is still wondering if
another brand at a slightly higher price would have been better. This is an example of:
A. the relationship between drives, cues, and reinforcement.
B. dissonance.
C. reference group influence.
D. stimulus-response reaction.
E. routinized response behavior.
Answer:
Which of the following is a TRUE statement about markups?
A. A firm can lose money even when using a high markup.
B. Markup percents are computed as a percent of the cost of the product.
page-pf20
C. It's easier for a producer to administer the prices consumers pay for products if the
markup used varies from one intermediary to the next.
D. The lower the markup, the lower the profit.
E. None of these statements about markups is true.
Answer:
A S.W.O.T. analysis can help a marketing manager:
A. define in which business and markets the firm wants to compete.
B. narrow down to a specific target market and marketing mix from the many
alternatives available.
C. see the pros and cons of different possible strategies.
D. develop a competitive advantage.
E. All of these can help a marketing manager who is using a S.W.O.T. analysis.
Answer:
page-pf21
A trademark or brand name can become public property if:
A. the owner doesn't renew the registration each year.
B. it becomes a common descriptive word for the product.
C. the owner doesn't register it under the Lanham Act.
D. it is sold in international markets.
E. All of these alternatives are correct.
Answer:
A producer of household batteries for flashlights, radios, and other small electronic
devices wants to increase its sales relative to its competitors. The company enters into
an arrangement with a supplier of bicycles to develop an incentive for retail buyers to
order more batteries. Salespeople for the battery company tell each buyer that for every
20 cases of batteries ordered, the buyer will get a new bicycle. The buyer can keep the
bicycle, or use it as part of an in-store contest promotion. The battery company's
promotion effort aimed at retail buyers is:
A. Pushing in the channel.
B. Pulling by customers.
C. Integrated marketing communications.
D. Buyer-initiated communication.
page-pf22
E. None of these is a good answer.
Answer:
A change in the _____ environment can affect consumer purchases of homes, cars, and
other items usually bought on credit.
A. legal
B. political
C. social/cultural
D. technological
E. economic
Answer:
page-pf23
Which of the following is(are) TRUE?
A. "Service mark" refers to all means of product identification.
B. A "trademark" must be attached to a product to be legally protected.
C. "Branding" refers to the use of symbols to identify a product-but does not include
brand names.
D. "Brand name" is a word, letter, or group of words or letters.
E. All of these alternatives are TRUE.
Answer:
Between 2000 and 2010, the highest growth rate in population in the United States
occurred in:
A. the western states.
B. the northeastern states.
C. the northwestern states.
D. the midwestern states.
Answer:
page-pf24
It costs a producer $400 to manufacture a product that is distributed through
wholesalers and retailers. The markups at the producer, wholesaler, and retailer levels
are 20%, 20% and 50%, respectively. The wholesaler's selling price for the product is
__________, and the retailer's selling price is ___________.
A. $625; $1250
B. $576; $864
C. $480; $576
D. $500; $625
E. Cannot be determined from the information provided
Answer:

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