Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
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 when searching for new
opportunities.
Answer:
Making a very specific marketing mix for a particular group is always less profitable
than a more general marketing mix that appeals to a larger segment.
Answer:
It is still possible for a firm to earn a profit if it operates in the sales decline stage of the
product life cycle.
Answer:
Sales promotion directed at employees is especially popular with service-oriented firms.
Answer:
In general, a marketing researcher should get some problem-specific data before
planning a formal research project.
Answer:
Scientists or engineerswho may have little interest in sales but do provide technical
assistance to order gettersare called technical specialists.
Answer:
Purchasing specifications may be very simple (with only a brand name or part number)
or very detailed (as with services).
Answer:
Task transfer is using telecommunications to move service operations to places where
there are pools of skilled workers.
Answer:
Marketing strategy planning should specify all of the operational decisions to
implement the plan.
Answer:
Generic products are popular in the U.S. and other developed nations, but not in
less-developed nations.
Answer:
Wholesalers are more likely to dominate distribution channels in more advanced
economies than in less-developed ones.
Answer:
Americans' preoccupation with deodorants is an example of a culturally learned need.
Answer:
Production flexibility allows a firm to make better use of EDI or some other type of
computerized reorder systembecause the firm can respond to customer needs more
quickly.
Answer:
If the risks of getting into international marketing are difficult to evaluate, it may be
wise to start with exporting
Answer:
In a market composed of service producers, most firms are small and geographically
dispersed.
Answer:
Drop-shippers have low operating costs because they do not actually handle the
products they sell.
Answer:
Total quality management can be used to improve any implementation effort.
Answer:
A supply chain includes all the activities involved in procuring materials, transforming
them into products, and distributing them to customers.
Answer:
In international marketing, it's important to rely on intuition and to generalize the
cultural influences on consumer behavior from one country to another.
Answer:
With the mass-customization approach, a firm tries to find a low-cost way to give
individual customers more or better choices.
Answer:
A salesperson on a commission salary earns the same amount regardless of how he or
she spends time.
Answer:
Mass marketing means focusing on some specific customers, as opposed to assuming
that everyone is the same and will want whatever the firm offers.
Answer:
Intensive distribution is selling a product through all responsible and suitable
wholesalers or retailers who will stock or sell the product.
Answer:
Short-run decisions that stay within the overall guidelines set during strategy planning
are called implementation decisions.
Answer:
The demand for business products derives from the demand for final consumer
products.
Answer:
Product advertising tries to sell a specific product, while institutional advertising tries to
promote an organization rather than a specific product.
Answer:
Specialty shops are limited-line stores which aim at a carefully defined target market
with a unique product assortment, good service, and knowledgeable salespeople.
Answer:
A target return pricing objective has administrative advantages in a large company
where there are many divisions to compare.
Answer:
The effectiveness of an advertising medium depends on how well it fits with the rest of
a particular marketing strategy.
Answer:
The product life cycle is the four stages a new product idea goes through from
beginning to end.
Answer:
It is possible for marketing managers to change or create new attitudes about goods and
servicesbut overcoming negative attitudes is a really tough job.
Answer:
The Lanham Act spells out the exact method for protecting registered trademarks, but
does not force firms to register their trademarks.
Answer:
Cooperative advertising is not very economicalbecause media rate structures usually
require local firms to pay more for local advertising than the same ad would cost a
national advertiser.
Answer:
A firm usually has more different strategy possibilities than it can pursue, so it must use
screening criteria to help eliminate those strategies not well-suited to the firm.
Answer:
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:
A low penetration price discourages competitors from entering the market.
Answer:
When a department store manager decides to offer its female shoppers a free trial of
Clinique's new skin cream, this is a decision about:
A. Product.
B. Place.
C. Promotion.
D. Price.
Answer:
After conducting a vendor analysis on potential suppliers, purchasing managers are
likely to choose the vendor that:
A. enables the firm to operate more efficiently with the least risk.
B. offers the lowest priced goods and services.
C. offers the widest assortment of business products.
D. received the best rating from gatekeepers.
E. was the friendliest.
Answer:
On June 23, 2010, the value of the euro was 1.31 compared to the U.S. dollar. This
meant that an American paying $100 for a product in the United States would be asked
to pay ______ euros for the same product while traveling in Europe.
A. 31
B. 69
C. 100
D. 131
Answer:
Ace Hardware is a multichannel retailer that integrates online and brick-and-mortar
stores (because its customers gather information online and then buy in a store or vice
versa).
Answer:
A salesperson in a large furniture outlet who earns 5 percent of the dollar sales she
completes each month is on what type of compensation program?
A. Straight salary
B. Sales quota
C. Combination plan
D. Straight commission
E. Selling formula plan
Answer:
Identify the incorrect statement about population density and population growth.
A. Population density is important to marketers.
B. In Bangladesh and Kenya more than 85 percent of people live in urban areas.
C. People everywhere are moving from rural areas to urban areas.
D. Population is very spread out in many of the African countries.
E. Population growth rate is higher in the United States than in China.
Answer:
Which of the following is an example of the "micro-macro dilemma?"
A. A homeowner purchases a ladder but falls off it because he didn't set up the ladder
according to the safety instructions posted on it.
B. A person gets a speeding ticket because she was talking on her cell phone while
driving and didn't notice a speed limit sign.
C. A person drives without fastening his seat belt even though a warning light and
chime remind him to "buckle up."
D. A person is injured while using a power lawn mower because of a small stone that is
hurled from the discharge chute.
E. A restaurant owner uses plastic containers to keep "take-out" food warm for
customers, but the containers cannot be reused or recycled.
Answer:
The fact that the demand for business products depends a lot on the demand for final
consumer products is called:
A. primary demand.
B. derived demand.
C. diminishing demand.
D. elastic demand.
E. secured demand.
Answer:
The Federal Fair Packaging and Labeling Act:
A. requires that consumer goods be clearly labeled in understandable termsto give more
information.
B. requires informative labeling of food products regarding nutrients, taste, and texture.
C. requires informative labeling of food products regarding fat content.
D. requires protective packaging.
E. All of these alternatives are correct.
Answer:
A firm's "break-even point" is that point where:
A. maximum profit is earned.
B. total variable cost just equals total revenue.
C. total profit just equals total cost.
D. total cost just equals total revenue.
E. None of these alternatives is correct.
Answer:
Tom and Sally Jones are preparing to purchase a new car. He currently has a Toyota
Camry and she has a Honda Accord. They now have two children under age 5, so they
plan to trade in Sally's car to purchase a minivan. Sally and Tom decided on a Honda
Odyssey because Sally is familiar with Hondas and thinks they are very reliable. In this
purchase situation, Tom and Sally's family life cycle stage is a _____________
segmenting dimension, and the benefit Sally seeks (reliability) is a _____________
segmenting dimension.
A. geographic; demographic
B. demographic; behavioral
C. geographic; behavioral
D. demographic; geographic
E. behavioral; demographic
Answer:
All of the following are true of institutional advertising except it
A. focuses on the name and prestige of an organization or industry.
B. seeks to inform, persuade, or remind.
C. tries to keep the product's name before the public.
D. develops goodwill or improves an organization's relations with various groups.
E. advocates a specific cause or idea.
Answer:
Which of the following are examples of "personal needs"?
A. Needs for food, liquid, and rest.
B. Needs for accomplishment, fun, and freedom.
C. Needs for solutions, protection, and physical well-being.
D. Needs for love and friendship.
E. Needs for status and connecting with others.
Answer:
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. In regard to freight charges for its equipment, NPE's invoice reads, "Seller
pays the cost of loading equipment onto a common carrier. At the point of loading, title
to such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
National Printing Equipment's new Gutenberg NP201 should probably use:
A. price fixing.
B. skimming pricing.
C. introductory pricing.
D. penetration pricing.
E. seasonal discounts.
Answer:
Customers are likely to be more price sensitive when:
A. the total expenditure is great.
B. they have to pay the bill themselves.
C. the end benefit isn't very significant.
D. they haven't yet spent any money related to the purchase.
E. All of these alternatives are correct.
Answer:
Which of the following is NOT true about a market-directed economy?
A. Consumers enjoy maximum freedom of choice.
B. Producers enjoy maximum freedom of choice.
C. The interaction between consumers and producers is great.
D. Government is responsible for setting up all marketing activities.
E. The price of a consumer product serves as a measure of its value.
Answer:
When a firm's president appears in TV testimonial ads to assure customers, employees,
and stockholders that the firm is making a fast recovery from some problem, this is:
A. institutional advertising.
B. reminder advertising.
C. competitive advertising.
D. comparative advertising.
E. pioneering advertising.
Answer:
After his Political Science class, Andre only remembered the parts of his professor's
lecture that he agreed with. This is an example of:
A. selective retention.
B. selective exposure.
C. selective information.
D. selective attention.
E. selective action.
Answer:
Which of the following is usually the most expensive way to collect data from
consumers?
A. Telephone surveys
B. E-mail surveys
C. Online surveys
D. Mail surveys
E. Personal interviews
Answer:
Sales of a producer's wax paper food-wrap are declining fast. The advertising
managerlooking for a way to attract attention to the brandsuggests changing the
package somewhat and promoting it as a "new" product. The Federal Trade
Commission
A. would allow the company to call the product "new" for only six months.
B. probably would not approve of this at all.
C. would allow the advertising campaign if it concluded that consumers thought the
different package made it new.
D. does not regulate advertising, so it would not pay any attention to this firm.
E. None of these alternatives is correct.
Answer:
Which of the following would be the BEST reason to use the "full-cost approach" when
comparing the performance of several product managers?
A. Unlike the "contribution-margin approach," it charges managers only for the
expenses which are directly related to their operations.
B. This approach is required by Federal tax laws.
C. It charges each product manager only for those expenses which he controls.
D. It allows management to consider only the variable costs related to different
products.
E. It makes each manager bear a share of the overhead expenses which were made for
everyone's benefit.
Answer:
A consumer who is interested in making the switch from a desktop computer to a tablet
computer may require a prolonged learning and trial process known as:
A. the consumer decision process.
B. limited problem solving.
C. the adoption process.
D. selective exposure.
E. lifestyle analysis.
Answer:
Converse started selling its "high-top" canvas basketball shoes in colors such as hot
pink, lime green, and purple, to accompany their traditional colors of black and white.
Converse seems to be pursuing a _____________ opportunity.
A. market penetration
B. market development
C. product development
D. diversification
E. breakthrough
Answer:
A Xerox photocopy machine in the university chancellor's office is an example of what
type of business product?
A. Installation
B. MRO product
C. Accessory
D. Component part
E. Component material
Answer:
Which of the following statements about channel systems is true?
A. Traditional channel systems are more efficient because of their greater freedom.
B. Vertical integration works best when discrepancies of quantity are large.
C. Most corporate channel systems use multichannel distribution.
D. Some administered channel systems obtain the advantages of vertically integrated
systems while still retaining flexibility.
E. All of these statements about channel systems are true.
Answer:
Hewlett-Packard sells personal computers through specialty computer stores,
electronics superstores, and its own Internet site. The marketing mix variable that is
being considered here is:
A. Price.
B. Promotion.
C. Personnel.
D. Product.
E. Place.
Answer:
Often the most difficult step in the marketing research process is:
A. analyzing the situation.
B. defining the problem.
C. getting problem-specific data.
D. interpreting the data.
E. None of these is a good choice.
Answer:
Which of the following is NOT a current trend that is affecting marketing strategy
planning?
A. growth of JIT and EDI.
B. more international market development.
C. less attention to distribution service.
D. more attention to quality.
E. faster new-product development.
Answer:
Ceramics Distributing Co. wants to keep its inventory low. Which of the following
would be MOST likely to encourage customers to take over more responsibility for the
storage function?
A. setting a skimming price
B. specifying invoice terms of 2/10, net 30
C. offering a noncumulative quantity discount
D. using zone pricing
E. using F.O.B. shipping point pricing
Answer:
Which of the following is best illustrated by a supermarket that carries Nintendo video
games?
A. The superstore concept
B. Scrambled merchandising
C. The wheel of retailing
D. Target marketing
E. Mass merchandising
Answer:
