The economic-buyer theory assumes that consumers know all the facts and logically
compare choices.
Answer:
Goods are typically mass-produced in a factory far away from customers, while
services are produced in their presence.
Answer:
Drop-shippers keep adequate quantities of every product they carry in their own
warehouses so that they can ship them out quickly.
Answer:
“Noise” in the traditional communication process is any distraction that reduces the
effectiveness of the communication process.
Answer:
A marketing strategy is composed of two interrelated parts-a target market and a
marketing mix.
Answer:
A channel of distribution must include several kinds of intermediaries and
collaborators.
Answer:
Service wholesalers may be general-merchandise, single-line, or specialty wholesalers.
Answer:
The problem with target marketing is that it limits the firm to small market segments.
Answer:
The product life cycle shows that sales of an individual firm’s brand follows a general
pattern-which is very useful for marketing strategy planning.
Answer:
Advance information on product availability affects physical distribution (PD) service
levels.
Answer:
A personality trait like moodiness is a good example of an “operational” segmenting
dimension.
Answer:
Marketing costs go down and customer satisfaction goes up in all exchanges handled by
e-commerce.
Answer:
A firm that tries to increase sales by selling new products in new markets is pursuing
“market development” opportunities.
Answer:
Making sure that the benefits a customer receives from a marketing mix exceed the
customer’s costs of obtaining those benefits is one way to gain a competitive advantage.
Answer:
A marketing program may consist of several marketing plans.
Answer:
Which of the following statements about market segmentation is NOT True?
A. It starts by segmenting broad product-markets.
B. It involves naming broad product-markets.
C. A market grid with submarkets can be a visual aid to market segmentation.
D. It segments broad product-markets in order to develop suitable marketing mixes.
E. First-time market segmentation efforts often fail.
Answer:
Just-in-time relationships between buyers and sellers usually require operational
linkages and information sharing.
Answer:
Installations are not bought very often, but the number of potential buyers at any
particular time is usually quite large.
Answer:
Big data involves data sets too large and complex to work with typical database
management tools.
Answer:
Consumer products that a customer really wants and is willing to make a special effort
to shop for and compare different possibilities are specialty products.
Answer:
A product-market segment is “operational” if it is big enough to be profitable to the
firm.
Answer:
A successful marketing program benefits the firm by increasing customer equity.
Answer:
Firms with high markups and low turnover rates may earn lower profits than firms with
low markups and high turnover rates.
Answer:
The cost of handling a purchase order for operating supplies may be more than the cost
of the purchase.
Answer:
Customer service reps are usually specialists who are involved in helping potential
customers before a purchase is made.
Answer:
When a seller uses “zone pricing,” the actual freight charge for delivering each order is
included in the price the buyer pays for the product.
Answer:
The marketing concept says that a firm should aim all its efforts at satisfying customers,
even if this proves to be unprofitable.
Answer:
Using one or two demographic dimensions to describe market segments usually does
not provide enough detail for planning a marketing strategy.
Answer:
A firm involved in international marketing should pay even more attention to
segmenting than a firm that sells only in the United States.
Answer:
A marketing mix consists of the uncontrollable variables which a company puts
together to satisfy a target market.
Answer:
To evaluate the effectiveness of advertising, it’s better to rely on the judgment of the
creative people in ad agencies than to rely on the results of advertising research.
Answer:
Marketing manager Ricki Stephens reviewed her marketing information system to learn
who was buying her company’s products and at what stores they were buying. She
found this internal and external data in her company’s:
A. data warehouse.
B. big data set.
C. market research network.
D. annual report.
E. focus group.
Answer:
______________ means a brand is not recognized by final customers at all.
A. Brand nonrecognition
B. Brand rejection
C. Brand insistence
D. Brand recognition
E. Brand preference
Answer:
Use the following information to answer question that refer to the Jewel Craft case.
Jewel Craft, Inc. is a leading producer in the United States’ women’s costume jewelry
and accessories market. Its brands are well known and are sold by department stores
and better women’s stores. Several stores in a city may carry Jewel Craft’s brands
because most of Jewel Craft’s customers will not consider any other brand.
Jewel Craft’s sales force calls on one wholesaler in each state. Gemco, Inc., of Boston,
Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells
women’s accessories (noncompeting lines) for several manufacturers like Jewel Craft.
Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight
charges to their warehouses. Jewel Craft’s policy of using one wholesaler per state
comes from its desire to control its distribution. Jewel Craft uses national magazine
advertising and also supports a cooperative ad program with retailers.
Jewel Craft’s prices allow for a 40 percent retail markup-an attractive percent when one
considers that Jewel Craft’s products require little in-store selling because of their
well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding
to watches under the Jewel Craft name. It was argued that although national watch sales
have leveled off, Jewel Craft could enjoy growing sales for several years because of the
fine reputation the company has achieved. If watches are added, Jewel Craft will use its
present policies regarding distribution, pricing, and advertising. Further, it will offer the
wholesalers and retailers an attractive “package” deal as an incentive to carry Jewel
Craft watches. Intermediaries will be required to carry the watches if they wish to
handle the jewelry and accessories.
Given the information in the Jewel Craft case, jewelry and accessories would be in
which product class?
A. Homogeneous shopping product
B. Staple product
C. Convenience product
D. Impulse product
E. Specialty product
Answer:
As consumers shift their support to firms that do meet their needs,
A. laggard businesses are forced to either improve or get out of the way.
B. firms should focus on domestic markets and ignore international ones.
C. firms must immediately adopt their competitors’ strategies.
D. firms should adhere to the idea that “if it ain’t broke, don’t fix it.”
E. firms should increase promotional expenditure.
Answer:
Which of the following observations concerning a “reference price” is true?
A. Reference price is the company’s cost to produce the product.
B. Reference price is set by regulators.
C. Demand may increase if a firm’s price is lower than a customer’s reference price.
D. All customers have the same reference prices for the same basic type of purchase.
Answer:
U.S. teenagers spend about ______ billion per year.
A. $100
B. $150
C. $200
D. $250
E. $300
Answer:
The median family income in the U.S. in 2010 was about:
A. $30,000
B. $40,000
C. $50,000
D. $75,000
E. $100,000
Answer:
Since individual firms cannot perform all marketing functions, _____ often play a role
in the exchange process.
A. intermediaries
B. consumers
C. nonprofits
D. marketing managers
E. government regulators
Answer:
When a firm tries to increase sales by selling its present products in new markets, this is
called:
A. product development.
B. diversification.
C. market penetration.
D. mass marketing.
E. market development.
Answer:
The marketing manager for Lucky Grains cereals is forecasting potential lifetime sales,
costs, and profitability for a potential new product-Lucky Rice Squares. The marketing
manager is using ____ to evaluate this opportunity.
A. cost plus assessment
B. operating margins screen
C. industry attractiveness matrix
D. strategic planning grid
E. total profit approach
Answer:
Reshma Ananda, a marketing manager for the Grocery SuperStore retail chain, fired up
a computer program that gave her ready access to information about product
availability and customer buying. The program helped her immediately set prices for
bananas and cherries. This type of computer program is called ______.
A. a decision support system
B. data warehouse management
C. an Internet
D. PRICE analysis software
E. raw data manager
Answer:
The message “Get your daily dose of vitamin C with orange juice” is an example of
which type of advertising?
A. Pioneering
B. Competitive
C. Indirect action
D. Reminder
E. Direct action
Answer:
Dealer brands (private brands) have the following advantages over manufacturer brands
except:
A. dealer brands produce higher margins.
B. dealer brands receive special shelf position and promotion in stores.
C. dealer brands do not require advertising and promotion campaigns.
D. dealer brands are often viewed as cheap.
E. dealer brands do not incur costs associated with premium ingredients.
Answer:
A producer is likely to focus its promotion effort on stimulating selective demand at
what stage in the product life cycle?
A. Market introduction.
B. Market growth.
C. Market maturity.
D. Sales decline.
E. When primary demand is exhausted.
Answer:
_____ means using normal promotion effort to help sell the whole marketing mix to
possible channel members.
A. Pushing
B. Pulling
C. Encoding
D. Decoding
E. Controlling
Answer:
A fast-food chain is redesigning its restaurants. One of the main questions facing the
chain’s management is, “Should the new restaurant design include a salad bar?” A
researcher in the company finds an article in a restaurant trade magazine containing the
results of a study about salad bars. The results indicate that salad bars are costly to
maintain and are not a major attraction to consumers. Based on this information,
management decides that it will not have a salad bar as part of the new restaurant
design. This example illustrates the point that:
A. Situation analysis sometimes eliminates the need for conducting further research in a
problem area.
B. Situation analysis is very costly in terms of time and money.
C. Secondary data from sources outside the company is always better than secondary
data from sources inside the company.
D. Secondary data from private sources is always better than secondary data from
government sources.
E. Collecting primary data is always necessary in order to make good decisions.
Answer:
Which of the following statements is true of vendor analysis?
A. Its goals include increasing the total costs associated with purchases.
B. It is also known as portfolio analysis.
C. Its sole purpose is to get the lowest price from a supplier on a given product or
service.
D. It is an informal rating of the retailers and wholesalers in an industry.
E. It helps in selecting suppliers by evaluating them in all relevant areas of
performance.
Answer:
Regarding the organization of the product classes, an impulse product is to an
emergency product as
A. a new unsought product is to a regularly unsought product.
B. an installation is to a homogeneous shopping product.
C. an impulse product is to a convenience product.
D. a consumer product is to a business product.
E. a shopping product is to a specialty product.
Answer:
A research proposal
A. develops and analyzes new information about a market.
B. specifies what information will be obtained and how.
C. is an informal study of what information is already available in the problem area.
D. seeks in-depth, open-ended responses, not yes or no answers.
E. is typically in a database format that standard website search engines can find.
Answer:
A marketing strategy
A. specifies a target market and a related marketing mix.
B. provides a focused but narrow picture of what a firm will do in some market.
C. is a market-oriented, whole-company plan.
D. includes two interrelated parts-product mix and product development.
E. includes the marketing mix, but does not specify customers.
Answer:
A ______________ market is a market with broadly similar needs and sellers offering
various-and often diverse-ways of satisfying those needs.
A. homogeneous
B. product
C. relevant
D. generic
E. target
Answer:
Regarding population growth in the world,
A. population growth in Japan and Europe is even slower than in the U.S.
B. less-developed countries generally experience the fastest growth.
C. the populations of Ethiopia, Nigeria, and Somalia will likely increase by 40 percent
or more between 2010 and 2025 while the populations of the U.S. and Canada will
grow by 14% or less.
D. All of these are true regarding world population growth.
Answer:
The economic freedom provided within a market-directed economy produces the
greatest number of:
A. government planners
B. government regulations
C. entrepreneurs and innovators
D. military-oriented purchases
E. trade restrictions
Answer:
CeCe Springer works for a large cosmetics company. She calls on retailers to tell them
about her firm’s new products, to train the retailers’ salespeople, and to set up promotion
displays. Her boss actually handles the order-related activities. CeCe is:
A. an order getter.
B. a manufacturers’ agent.
C. a technical specialist.
D. an order taker.
E. a missionary sales rep.
Answer:
Which of the following is NOT a current trend affecting marketing strategy planning?
A. more attention to environmental issues
B. growth of ethnic submarkets
C. growth of product placement promotion
D. growth of senior citizen submarket
E. shift away from exporting
Answer:
Integrated direct-response promotion:
A. got its start in the area of direct-mail advertising.
B. is often part of an integrated marketing communications program.
C. focuses on achieving feedback from a target customer that is immediate and
measurable.
D. All of these alternatives are correct for integrated direct-response promotion.
Answer:
All of the following are the basic ideas included in the definition of the marketing
concept except
A. customer satisfaction.
B. total company effort.
C. profit, or another measure of long-term success, as an objective.
D. making whatever products are easy to produce and then trying to sell them.
E. giving customers what they need.
Answer:
A firm’s product-market screening criteria for evaluating existing plans and possible
new opportunities should consider:
A. the objectives of top management.
B. trends in the market environment.
C. the firm’s strengths.
D. the firm’s weaknesses.
E. All of these should be considered.
Answer:
Which of the following statements about economic decision-making is TRUE?
A. In a market-directed economy, the micro-level decisions of individual producers and
consumers determine the macro-level decisions.
B. Government planning usually works best when economies become more complex
and the variety of goods and services produced is fairly large.
C. The United States may be considered a pure market-directed economy.
D. Command economies usually rely on market forces to determine prices.
Answer:
Which of the following is true?
A. Manufacturer brands usually have national distribution while dealer brands are only
distributed locally.
B. Dealer brands are always priced lower than manufacturer brands.
C. Dealer brands may be distributed as widely or more widely than many manufacturer
brands.
D. Dealer brands are distributed only by chain-store retailers.
E. None of these alternatives is true.
Answer:
Almost any business transaction in a modern economy involves:
A. an exchange at a list price.
B. “dumping.”
C. an exchange of money-the money being the Price-for something of value.
D. a loss of consumer surplus.
E. an exchange in which price serves as a measure of quality.
Answer:
What medium is appropriate for integrated direct-response promotion?
A. telephone
B. interactive video
C. print
D. e-mail
E. any of these media might be appropriate for integrated direct-response promotion
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:
When a firm tries to increase its total sales by offering new products to new markets, it’s
pursuing:
A. diversification.
B. product development.
C. market development.
D. market penetration.
E. All of these.
Answer:
Rack jobbers:
A. don’t own the products they sell.
B. apply their knowledge of the local market to many stores.
C. are full service merchant wholesalers.
D. are different from most wholesalers because they specialize in giving small retailers
long-term credit.
E. All of these are correct for rack jobbers.
Answer: