Which of the following is an example of a limited-function merchant wholesaler?
A. Cash-and-carry wholesaler
B. Broker
C. Mill supply house
D. General-line wholesaler
E. Specialty wholesaler
Answer:
Midway, Inc. has seen most of its competitors drop out of its product-market due to
declining industry sales and profits. But Midway still has much demand for its product
from a small group of loyal customers. This product-market is in which product life
cycle stage?
A. Market introduction
B. Market maturity
C. Market development
D. Market growth
E. Sales decline
Answer:
Which of the following is an “unsought product”?
A. Gravestones aimed at ‘senior citizens”
B. A new type of “health food” produced by a new, small company
C. Life insurance aimed at college students
D. Encyclopedias aimed at new parents
E. All of these are unsought products
Answer:
An “all the traffic will bear” pricing objective is a ______________ objective.
A. target return
B. profit maximization
C. growth in market share
D. meeting competition
E. nonprice competition
Answer:
A grocery store or mass-merchandiser might rely on a _____ to decide which paperback
books or magazines it sells.
A. catalog wholesaler
B. rack jobber
C. truck wholesaler
D. drop-shipper
E. specialty wholesaler
Answer:
A manager with a “production orientation” is likely to think that:
A. customers exist to buy the firm’s output.
B. customers’ needs should guide decisions about what the firm produces.
C. the company should find out what product customers want to buy, and then produce
that product.
D. production managers should handle all marketing activities.
E. people in the production department should work closely with people from all the
firm’s other departments.
Answer:
Lisa Campos was interested in buying a coffee pot to use at college and a cassette
player for her sister’s birthday present. At the local discount store, she compared prices
on coffee pots and chose the cheapest. She read the product information on each
cassette player and finally chose one with stereo headphones and a rechargeable battery.
For Lisa, the coffee pot was
A. a convenience product, but the cassette player was a specialty product.
B. a heterogeneous shopping product, but the cassette player was a staple.
C. an impulse product, but the cassette player was a convenience product.
D. a specialty product, but the cassette player was a heterogeneous shopping product.
E. a homogeneous shopping product, but the cassette player was a heterogeneous
shopping product.
Answer:
A ‘skimming pricing policy”:
A. should be used if a firm expects strong competition very soon.
B. is most useful when demand is very elastic.
C. is typically used during the sales decline stage of the product life cycle.
D. usually involves a slow reduction in price over time.
E. means temporary price cuts to speed new products into a market.
Answer:
High Meadow Mfg. Co. sold its product through wholesalers and retailers-allowing the
wholesalers a markup of 25 percent and retailers a markup of 40 percent. If the retail
selling price is $100 and the manufacturer’s cost is $30, what markup in dollars did
High Meadow receive on the sale of this product?
A. $5.00
B. $13.50
C. $15.00
D. $10.00
E. $20.00
Answer:
Which of the following statements about the commercialization stage of the
new-product development process is False?
A. A firm should always rollout the product to the entire target market at one time.
B. Channels of distribution need to be filled with goods.
C. Introductory promotion tends to be more costly if the firm is entering a very
competitive market.
D. People need to be hired and trained to provide services.
E. None of these statements is False.
Answer:
Which of the following is NOT a trend affecting marketing planning strategy in the area
of Business and Organizational Customers?
A. Shift to NAICS
B. Closer relationships and single sourcing
C. ISO 9000
D. Less e-commerce and supply chain management
E. More use of JIT and EDI
Answer:
A firm would likely pursue penetration pricing when
A. it expects zero competition.
B. economies of scale are nonexistent.
C. the elite market is substantial.
D. the whole demand curve is fairly elastic.
E. supply is limited.
Answer:
In a generic market
A. sellers offer various, often diverse, ways of satisfying broadly similar needs.
B. consumers are offered various close substitute ways of satisfying needs.
C. everything is the same as in a product-market.
D. customers have very diverse needs.
E. sellers produce unbranded products.
Answer:
A marketing mix consists of:
A. policies, procedures, plans, and personnel.
B. the customer and the “four Ps.”
C. all variables, controllable and uncontrollable.
D. product, price, promotion, and place.
Answer:
Which of the following statements by marketing managers is NOT logical and true?
A. “We are planning to appeal more to Hispanic consumers, since this group has surged
and is now over 15 percent of the population.”
B. “We’re building supermarkets that will appeal to Hispanic consumers; it’s a big
investment, but the Hispanic population in the U.S. spends nearly $1 trillion a year.”
C. “We are adapting our diaper promotion to target African American and Hispanic
parents, since the birthrate in those groups is higher than for whites.”
D. “We will target Asian Americans in California, New York, and Texas since over half
of their population in the U.S. is concentrated in those three states.”
E. “We are going to appeal to the African American group because it is a large,
homogeneous target market.”
Answer:
Personal selling:
A. Is indirect written communication between buyers and sellers.
B. Is indirect spoken communication between buyers and sellers.
C. Is not usually combined with other aspects of promotion in the total marketing mix.
D. Gets immediate feedback from consumers.
E. Is one of the least expensive components of the communications program.
Answer:
When developing marketing mixes for international markets, it is detrimental for
managers to predict consumer behavior based on:
A. economic needs.
B. culture.
C. personal intuition.
D. physiological needs.
E. input from locals in overseas markets.
Answer:
Sweets Galore, the manufacturer of Rainbow brand lollipops, decided to expand into
manufacturing liqueur-filled chocolate truffles. Its buying process for the chocolates,
liqueurs, and molds was extensive, and included setting product specifications and
evaluating sources of supply. This is an example of a
A. straight buy.
B. modified rebuy.
C. straight rebuy.
D. new-task buy.
E. simplified rebuy.
Answer:
Which of the following could be a “breakthrough opportunity?”
A. A unique technical invention that competitors could not legally copy.
B. A contract with the best intermediaries to reach your market-ensuring that they will
handle your product and no competitors’ offerings.
C. A head start in a market so you can win target customers who will be loyal to your
firm and its offering.
D. All of these could be breakthrough opportunities.
Answer:
Channel specialists use the regrouping activities of sorting and assorting to resolve:
A. discrepancies of time
B. discrepancies of quantity
C. discrepancies of assortment
D. discrepancies of place
E. discrepancies of need
Answer:
Carmela Sanchez is planning to buy a pair of running shoes. Recently, she has been
noticing more Adidas advertising in magazines. This is an example of:
A. a physiological need.
B. dissonance.
C. need satisfaction.
D. selective exposure.
E. a consumer expectation.
Answer:
General Electric’s ‘strategic planning grid”:
A. focuses on market share and market growth rate.
B. ignores some important issues-such as competitive structure and the environmental
impact of a plan.
C. requires that all opportunities be judged either “High” or “Low.”
D. substitutes quantitative estimates for management judgment.
E. None of these is true.
Answer:
Advertising spending as a percent of sales dollars is lowest for:
A. malt beverages.
B. cars.
C. cable TV.
D. computers.
E. games.
Answer:
Marketers increasingly hire celebrities and even full-time bloggers to engage consumers
in social media discussions about new products. A person who is able to influence
followers to try products is:
A. a channel captain.
B. a consumer advocate.
C. a marketer.
D. a figurehead.
E. an opinion leader.
Answer:
Which of the following would a firm need to specify BEFORE deciding on its sales
promotion objectives?
A. Company objectives.
B. Production objectives.
C. Product objectives.
D. Marketing objectives.
E. All of these objectives would need to be specified beforehand.
Answer:
The Consumer Product Safety Commission can:
A. back up its orders with jail sentences.
B. set safety standards for products.
C. back up its orders with fines.
D. order return of “unsafe products.”
E. All of these alternatives are correct.
Answer:
Institutional advertising:
A. tries to stimulate primary demand rather than selective demand.
B. involves no media costs.
C. tries to develop goodwill for a company or even an industry.
D. tries to keep a product’s name before the public.
E. is always aimed at final consumers or users.
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.
What best describes the level of brand familiarity that customers in “SDF who?”
segment have with SDF?
A. Brand insistence
B. Brand rejection
C. Brand nonrecognition
D. Brand recognition
E. Brand preference
Answer:
A movie theater runs a film clip that shows pictures of candy, popcorn and soft drinks
prior to running the featured movie. The intent is to get theater patrons to make
purchases at the concession stand in the theater lobby. This process is an example of
which of the following behavioral influences on buying behavior?
A. Attitudes.
B. Beliefs.
C. Selective processes.
D. Learning.
E. None of these choices is correct.
Answer:
Specialty shops generally:
A. want to be known for the distinctiveness of their product assortment and the special
services they offer.
B. sell homogeneous shopping products.
C. are very good at speeding turnover.
D. carry complete lines-like department stores.
E. All of these alternatives are correct for specialty shops.
Answer: