When expenses are greater than the potential increased sales from market segmentation,
a firm should
A. not consider market segmentation at this time.
B. combine departments within the company to make the process more streamlined.
C. reduce production costs or increase prices to facilitate the segmentation process.
D. seek alternate channels of distribution, including Internet sales.
E. discontinue manufacturing any products that are not in the mature stage of their
product life cycle.
Answer:
Vizio’s HDTVs are sold through all of the following types of retailers EXCEPT:
A. Amazon.com.
B. mass merchandisers, such as Target.
C. its own company stores.
D. wholesale club stores such as Sam’s Club.
E. electronics stores such as Best Buy.
Answer:
With a __________, a salesperson’s earnings are directly tied to sales or profits
generated.
A. sales response compensation plan
B. combination compensation plan
C. straight sales compensation plan
D. straight commission compensation plan
E. market share compensation plan
Answer:
Figure 12-3
Figure 12-3 above depicts the four most common marketing channels for consumer
products and services. W represents
A. consumers.
B. industrial users.
C. wholesalers.
D. agents or brokers.
E. retailers.
Answer:
LinkedIn is
A. a website where users may create a personal profile, add other users as friends, and
exchange comments, photos, videos, and “likes” with them.
B. a website that enables users to send and receive short messages up to 140 characters
long.
C. a business-oriented website that lets users post their professional profiles to connect
to a network of businesspeople.
D. a video-sharing website in which users can upload, distribute, view, and comment on
videos.
E. a website enables online customers to use their collective buying power to take
advantage of deeply discounted prices for a product or service each day.
Answer:
The term truck jobbers refers to wholesalers who
A. furnish the racks or shelves that display merchandise in retail stores, perform all
channel functions, and sell on consignment to retailers.
B. store all the merchandise they sell in their trucks.
C. own the merchandise they sell but do not physically handle, stock, or deliver it.
D. have a small warehouse from which they stock their trucks for distribution to
retailers.
E. work for several producers, carry noncompetitive, complementary merchandise in an
exclusive territory, and use over-the-road transportation for all product deliveries.
Answer:
Which of the following activities are accomplished during the development stage for
services?
A. developing off-peak pricing strategies
B. using fast prototyping to improve the initial service design
C. ensuring that employees have the commitment and skills to meet customers’
expectations and sustain their loyalty
D. using capacity management models to match service availability with consumers’
needs
E. analyzing the sequence of service encounters
Answer:
Which type of salesforce training is the most popular type of training?
A. individual instruction
B. on-the-job training
C. formal classes
D. seminars taught by sales trainers
E. computer-based training
Answer:
Figure 7-6B: Average Annual Sales of Tony’s Pizza per Household
Figure 7-6B above shows that
A. annual sales of Tony’s Pizza increased over the period 2010 and 2013.
B. average annual unit sales of Tony’s Pizza per household decreased over the period
2010 and 2013.
C. average dollar sales of Tony’s Pizza have dropped from $3.4 million to $3.1 million.
D. sales of Tony’s Pizza to households with children declined over the period 2010 and
2013.
E. smaller households bought less Tony’s Pizza over the period 2010 and 2013.
Answer:
The NAICS provides common industry definitions for
A. Canada, England, and the United States.
B. North America, Asia, and Europe.
C. North America, Central America, and South America.
D. Canada, England, Australia.
E. Canada, Mexico, and the United States.
Answer:
Which of these laws came about as a response to the 1960s grassroots movement
known as consumerism?
A. Robinson-Patman Act
B. Clayton Act
C. Digital Millennium Copyright Act
D. FTC Act
E. Consumer Product Safety Act
Answer:
The fear of physical harm, the size of financial outlay required to buy the product,
product performance, and even the lack of approval of friends can all contribute to
A. consumer angst.
B. cognitive dissonance.
C. purchase anxiety.
D. perceived risk.
E. consumer cynicism.
Answer:
User generated content (UGC) refers to
A. content found on a personal profile page.
B. content found only on blogs and wikis.
C. content that is created with the intention of achieving commercial profit.
D. content found on forms of online media that are privately owned and operated by a
single user.
E. the various forms of online media content that are publicly available and created by
end users.
Answer:
The National Health Interview Survey is conducted annually by the Centers for Disease
Control and Prevention. By examining information gathered from a national sample of
600 respondents throughout the U.S., it was able to announce that 14.1 percent of all
Americans lacked healthcare insurance. To make this statement, the Centers for Disease
Control and Prevention had to use
A. focus groups.
B. no constraints.
C. internal secondary data.
D. statistical inference.
E. interpolation.
Answer:
One of the weaknesses inherent in the use of the BCG business portfolio analysis is that
it
A. causes dissension between different divisions when one is labeled a ‘star” and
another a “dog.”
B. reduces employee motivation to move a low valued SBU to a higher one.
C. considers too many SBU factors beyond market growth rate and relative market
share.
D. does not require sales forecasts in order to be implemented.
E. is often difficult to obtain the needed information to correctly place SBUs in the
matrix.
Answer:
A unique broker that acts in many ways like a manufacturer’s agent is a food broker,
representing buyers and sellers in the grocery industry. Food brokers differ from
conventional brokers because they act on behalf of producers on a permanent basis and
A. receive a commission for their services.
B. are paid a flat fee for each time the shelves are stocked.
C. are paid by both the buyer and seller separately depending upon the size of the order.
D. are paid a commission by the buyer and a bonus by the seller.
E. are paid a flat fee by both the buyer and seller, but receive a bonus based upon the
percentage of increased sales by quarter.
Answer:
The promotion-to-sales ratio can be used by managers to make year-to-year
comparisons of their programs, to compare the effectiveness of their programs with
competitors’ programs, or to make comparisons with
A. calculated break-even points.
B. estimated return on investments.
C. promotion-to-expense ratios.
D. industry averages.
E. advertising-to-sales promotion ratios.
Answer:
When using a __________ strategy, there is no change in either the basic product line
or the markets served. Instead, increased sales are generated by selling either more
products through better promotion or distribution or the same number of products at a
higher price.
A. product development
B. market development
C. diversification
D. market saturation
E. market penetration
Answer:
Communication with consumers who are not in the target audience is referred to as
__________.
A. excess coverage
B. wasted coverage
C. exhaustive coverage
D. squandered coverage
E. dissipated coverage
Answer:
Price ranges, store layouts, and breadth and depth of merchandise lines are considered
to be the __________ of a store’s image.
A. functional qualities
B. sociological qualities
C. psychological attributes
D. lifestyle attributes
E. atmospheric elements
Answer:
Chobani used all of the following tactics to promote its Chobani Greek Yogurt
EXCEPT:
A. sponsored the Food Network’s Rachel vs. Guy Kids Kick-Off TV show with its
Chobani Champions Tubes.
B. created a website to provide consumers with recipes that use Chobani Greek Yogur.
C. sponsored the 2012 and 2014 U.S. Olympic Teams.
D. used social networks like Facebook, Twitter, Pinterest, and Instagram.
E. relied on word-of-mouth in its early years.
Answer:
Consumers buy water and soda from vending machines. Traditionally, the price of each
of these products is about $1.25. If a marketer charges a significantly higher price for
such products dispensed by vending machines, such as $2.00 per item, sales are likely
to decline. Thus marketers tend to be very consistent in the prices they charge for
vending machine products. This is an example of marketers employing a __________
strategy.
A. below-market pricing
B. skimming pricing
C. penetration pricing
D. loss-leader pricing
E. customary pricing
Answer:
Promotion objectives should possess three important qualities. They should cover a
specified time period, be measurable, and
A. unique in character.
B. appealing.
C. be designed for a well-defined target audience.
D. repeatable.
E. creative.
Answer:
Two sources of horizontal conflict are common. It may occur when __________.
A. a manufacturer decreases its distribution coverage in a geographical area from
intensive to selective
B. disagreements arise over how profit margins are distributed among channel members
C. manufacturers believe wholesalers or retailers are not giving their products adequate
attention
D. a channel member bypasses another member and sells or buys products direct
E. dual distribution causes conflict when different types of retailers carry the same
brands
Answer:
The trade of things of value between buyer and seller so that each is better off after the
trade is referred to as __________.
A. financial remuneration
B. exchange
C. countertrade
D. barter
E. marketing
Answer:
The primary buying objective for business firms is usually to
A. increase profits through increasing costs and increasing revenues.
B. increase profits through reducing costs and decreasing revenues.
C. increase profits through reducing costs or increasing revenues.
D. maintain profits through reducing costs and increasing revenues.
E. reduce profits through reducing costs and reducing revenues.
Answer:
Charging different prices to maximize revenue for a set amount of capacity at any given
time is referred to as
A. demand backward pricing.
B. target pricing.
C. skimming pricing.
D. yield management pricing.
E. penetration pricing.
Answer:
There are three key elements when defining a marketing research problem. One of these
is __________.
A. specify constraints
B. set the research objectives
C. determine how report the findings
D. evaluate previous research results
E. identify data needed for marketing actions
Answer:
The second stage in the hierarchy of effects is __________.
A. interest
B. awareness
C. adoption
D. trial
E. evaluation
Answer:
Michael Angelo’s Pepperoni Mini Calzones are easy-to-prepare snacks, but the
manufacturer believes customers are not buying the product as predicted because they
are unfamiliar with calzones. The manufacturer is interested in employing a sales
promotion technique that will communicate the ease of preparation and encourage
customers to try the product. Which method would it most likely employ?
A. Advertise on television showing a mother microwaving the snack in less than 60
seconds.
B. Provide a premium to build customer goodwill by receiving reduced price
merchandise.
C. Have a sign that will be placed on the grocer’s freezer where the product is offered
for sale.
D. Use a rebate to encourage customer purchase and increase confidence in the product.
E. Use a demonstrator hired by the company to prepare the snack in a grocery store and
give away cooked, bite-sized samples of the snack to shoppers as they pass by.
Answer:
Figure 6-3
According to Figure 6-3 above, points A and D would most likely represent
__________ and __________ options respectively for entering the global marketplace.
A. joint venture; licensing
B. licensing; exporting
C. licensing; joint venture
D. direct investment; licensing
E. exporting; direct investment
Answer:
The four I’s of services consist of
A. intangibility, inconsistency, inseparability, and innovation.
B. intangibility, inventory, inflexibility, and impression.
C. intangibility, inconsistency, inseparability, and inventory.
D. intangibility, inventory, innovation, and impression.
E. intangibility, inconsistency, innovation, and impression.
Answer:
There are four commonly used forms of institutional advertising: advocacy, pioneering,
__________, and reminder.
A. differentiation
B. philanthropic
C. pioneering
D. competitive
E. informational
Answer:
Strategic channel alliances refer to
A. an arrangement whereby a firm reaches different buyers by employing two or more
different types of channels for the same basic product.
B. a practice whereby one firm’s marketing channel is used to sell another firm’s
products.
C. the blending of different communication and delivery channels that are mutually
reinforcing in attracting, retaining, and building relationships with consumers who shop
and buy in traditional intermediaries and online.
D. an arrangement whereby companies reduce distribution costs by sharing facilities,
equipment, and transportation.
E. a practice whereby consumers can interact with various advertising media to buy
products without a face-to-face meeting with a salesperson.
Answer: