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Sales data becomes wisdom when it provides answers to questions of "who," "what,"
"where," "how much," and "when."
Answer:
The vast majority of advertising agencies are small, with 10 or fewer employees.
Answer:
The Internet makes it easy to do comparison shopping of products and prices.
Answer:
An online interactive approach allows a marketer to customize communication to the
needs and responses of the customer.
Answer:
A manager who aggregates all potential customers into a single product-market segment
is likely to find that the segment is not homogeneous.
Answer:
A broker's "product" is market information.
Answer:
Examples of personal needs include self-esteem, accomplishment, fun, freedom, and
relaxation.
Answer:
A channel of distribution for a product involves more firms than a supply chain for the
same product.
Answer:
Sales-oriented pricing objectivessuch as maintaining or increasing market shareare
unpopular because it is so difficult to measure results.
Answer:
Traditional accounting reports don't give sufficient information to managers who need
to know what's happening, in detail, to improve the bottom line.
Answer:
Brand names that convey a positive image in one language may be meaningless in
another.
Answer:
A product line is a set of individual products that are closely related.
Answer:
As in the Toddler University case, the needs of a target market virtually determine the
nature of an appropriate marketing mix.
Answer:
The value of a firm's stock is more likely to increase when its profits are growing.
Answer:
In the seven-step approach to market segmentation, it is best to identify the relevant
needs of all potential customers BEFORE trying to form homogeneous submarkets.
Answer:
Organizations guided by a triple bottom line consider economic, social, and
environmental outcomes as measures of long-term success.
Answer:
A marketing manager who is willing to spend enough on persuasive promotion can
usually get consumers to buy anything the company chooses to produce.
Answer:
Export and import agents are basically manufacturers' agents who specialize in
international trade.
Answer:
Discretionary income is the income adjusted to take out the effects of inflation.
Answer:
"Empty nesters" is a term that refers to young couples with no children.
Answer:
A firm's obligation to improve its positive effects on society and reduce its negative
effects is called fiscal responsibility.
Answer:
A firm's "relevant market for finding opportunities" should be bigger than the present
product-market but not so large that it couldn't expand and still be an important
competitor.
Answer:
The "marketing concept" means that a firm emphasizes attracting new customers above
all other objectives.
Answer:
The physical distribution concept seeks to minimize the cost of distribution for a given
customer service level.
Answer:
Only about 25 percent of marketing research spending is for syndicated research.
Answer:
It is usually necessary for a firm to use a family brand rather than individual brands if it
plans to offer products at different quality and price levels to different target markets.
Answer:
In a market-directed economy, price is a rough measure of how society values particular
goods and services.
Answer:
When planning new products, managers need not be too concerned about safe design
because it is each consumer's responsibility to decide what products are safe to buy and
use.
Answer:
The stockturn rate is the number of times the average inventory must turnover to make
a profit in a given year.
Answer:
Defining the problem is often the most difficult step in the marketing research process.
Answer:
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:
When a salesperson for Procter and Gamble calls on key wholesalers to explain why
they should stock and sell a new type of Procter and Gamble shampoo to retailers, this
is an example of:
A. Pulling.
B. AIDA.
C. Encoding.
D. Pushing.
E. Decoding.
Answer:
_____ are costs that a customer faces by buying a product that is different from what
has been purchased or used in the past.
A. Marginal costs
B. First-mover costs
C. Switching costs
D. Pioneering costs
E. Opportunity costs
Answer:
The majority of U.S. firms use a one-price policy
A. to broadcast a single price to competitors.
B. for administrative convenience.
C. to increase pricing flexibility.
D. to undercut competition.
E. to ward off competition from imports.
Answer:
Travel Magic Company wants to enter the hotel business. Its marketing managers are
brainstorming ideas about why customers go to different hotels and then writing down
customer requirements. At this point, Travel Magic is engaging in which step of the
seven-step approach for segmenting product-markets?
A. Selecting the broad product-market
B. Identifying potential customers' needs
C. Forming homogeneous submarkets
D. Identifying the determining dimensions
E. Estimating size of each product-market segment
Answer:
When listening to music on the radio, many consumers automatically switch stations
when commercials begin to run, and they search until they find another station that is
playing music. This tendency is an example of:
A. Selective exposure.
B. Selective perception.
C. Selective retention.
D. Selective learning.
E. Selective reception.
Answer:
The text says "markups":
A. should always be stated as a percentage of cost.
B. are a percentage of selling priceunless otherwise stated.
C. are never stated as a percentage of cost.
D. should never be stated in dollar amounts.
E. None of these alternatives is correct.
Answer:
Department A in a company had sales of $60,000 in the year 2012. Variables costs of
sales was $30,000 and variable selling expenses were $9,000. Fixed administrative
expenses were $5000. What is the contribution margin?
A. $60,000
B. $39,000
C. $21,000
D. $30,000
E. $16,000
Answer:
Which of the following is not a need that affects the buying behavior of "economic
buyers"?
A. Economy of purchase or use
B. Convenience
C. Dependability in use
D. Motivation
E. Efficiency in operation or use
Answer:
When evaluating international markets, the marketing manager should:
A. focus primarily on consumer markets because foreign business markets are in
general too risky.
B. not worry very much about segmenting because marketing concepts are not very
well developed in most other economies.
C. consider the whole "foreign market" as a segment.
D. use broad criteria, such as geographic region or stage of economic development, to
define submarkets before further segmenting.
E. treat each foreign market as a separate segment.
Answer:
Rosalita has a special place in her heart for Fina Pasta. She will make a special effort to
find the pastaeven going to another store if she cannot find it at her usual store. For
Rosalita, Fina Past is a(n) _____ product.
A. homogeneous
B. specialty
C. unsought
D. new unsought
E. impulse
Answer:
Merchant wholesalers
A. own the products they sell.
B. often specialize by certain types of products or customers.
C. take title to the products they are selling for some period before selling to customers.
D. constitute almost 85 percent of the wholesaling establishments in the United States.
E. All of these alternatives are correct for merchant wholesalers.
Answer:
The physical distribution customer service level concerns
A. the costs to carry a product in inventory.
B. the length of time a product is stored in inventory.
C. the effort put in by channel members to meeting customer needs.
D. the location of distribution centers.
E. how rapidly and dependably a firm can deliver what customers want.
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.
D. generally increases storing costs.
E. None of these alternatives is correct for shipping by air.
Answer:
Branding can help BRANDERS because it:
A. may lower promotion costs.
B. can improve the company's image.
C. encourages repeat buying.
D. may develop customer loyalty.
E. All of these alternatives are correct.
Answer:
A "dealer brand" is sometimes called a __________ brand.
A. national
B. local
C. manufacturer
D. private
E. regional
Answer:
The AIDA model's four basic promotion jobs are concerned with:
A. attention, interest, desire, action.
B. action, interest, desire, acceptance.
C. awareness, interest, demand, action.
D. attention, internalization, decision, action.
E. awareness, interest, decision, acceptance.
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.
Answer:
A producer using normal promotion effortspersonal selling, sales promotion, and
advertisingto help sell a whole marketing mix to possible channel members has:
A. a selective distribution policy.
B. a target marketing policy.
C. an intensive distribution policy.
D. a pushing policy.
E. a pulling policy.
Answer:
Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby
and craft supplies. She bought the store after working there for 7 years. Carol has just
been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber
of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goodsmostly
men's and women's clothingwith the upscale Walden's brand name. Walden's primarily
relies on its own stores where knowledgeable salespeople offer great service. Walden
products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks
display racks for paperback books and magazines. Most retailers welcome the service
Audrey provides, in part because she does her own research to determine which
paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of
merchandise. The company used to concentrate its product mix on small appliancesbut
now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster
turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed
a contract with Games Unlimited and follows strict rules covering her store's operations
and the Games Unlimited marketing strategy. She pays that company a fee for
promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty
products to retailers and salons throughout the greater Centerville area. It owns the
goods it sells to these retailer customers, and it provides all the wholesaling functions
they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored
by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer
name are linked by contracts that include basic operating procedures, storefront designs,
and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding
in the Centerville area. It earns a commission from each manufacturer on the products it
sells for that manufacturer, but it does not take ownership of the equipment it sells nor
does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years
ago. After some success, the company moved into a nicer storefront, raised prices, and
now operates in the middle of the market.
Which of these businesses relies on the mass-merchandising concept?
A. Publisher's Helper
B. Cuzco's
C. Walden's Leather
D. Reddy and Sons
Answer:
_____ in the marketplace are a rough measure of how society values particular goods
and services.
A. Inventories
B. Prices
C. Cost of labor and materials
D. The number of producers
E. Discrepancies of quantity
Answer:
Gross domestic product (GDP):
A. is affected by economic conditions and the productivity of workers in the country.
B. usually rises when there are bad economic conditions in an economy.
C. is the amount of new capital invested in business in a year.
D. is the total cost of producing all goods and services in a year.
E. is the total market value of goods and services consumed in an economy in a year.
Answer:
Which of the following buying situations gives a seller the most chance for promotion
impact?
A. Selective task buying
B. Modified rebuy buying
C. New-task buying
D. Straight rebuy buying
E. All of these buying situations are equal.
Answer:
"Economies of scale" means that:
A. as a company produces larger numbers of a particular product, the cost of each unit
of the product goes down.
B. the more producers there are in an economy the greater the need for intermediaries.
C. larger countries enjoy more economic growth than smaller countries.
D. as a company produces larger numbers of a particular product, the total cost of
producing these products goes down.
Answer:
The two basic types of merchant wholesalers are:
A. single-line and limited function.
B. agents and merchants.
C. service and general line.
D. service and limited function.
E. single-line and general line.
Answer:
Studies have shown that customers who weren't satisfied with response to their
complaints
A. on average told one person about their experience.
B. on average told ten people about their experience.
C. usually never spoke about it.
D. will make at least two more complaints.
E. spoke about their experience only when prodded by researchers.
Answer:
_____ is what a customer must give up to get the benefits offered by the rest of a firm's
marketing mix.
A. Promotion
B. Price
C. Product
D. Past
E. Profit
Answer:
Which of the following statements about supply chains is FALSE?
A. A supply chain includes all the activities involved in procuring materials,
transforming them into products, and distributing them to customers.
B. A supply chain includes one or more channels of distribution.
C. The primary aim of any firm in a supply chain is to contribute to customer value by
minimizing its own distribution costs.
D. Few firms are willing to give "outsiders" access to information in their computer
systems, so it is likely to be quite some time before computers have the impact on
managing a supply chain that they have had in other areas of business.
E. None of these statements about supply chains is FALSE.
Answer:
Because of _____, a court rules that a fast-food restaurant has a legal obligation to pay
damages to a family whose child was injured when it swallowed an unsafe toy that
came in a kids' meal box.
A. consumer compensation
B. product liability
C. consumer protection
D. product quality assurance
E. pleasing products
Answer:
Pfizer Corp. is introducing a really new product idea. Pfizer is spending a lot of money
to inform potential customers and intermediaries about the availability and advantages
of the new product. Although sales are rising slowly, Pfizer doesn't expect the product
to become profitable for at least another year. Pfizer's new product is in which stage of
the product life cycle?
A. Market introduction
B. Sales decline
C. Market development
D. Market growth
E. Market maturity
Answer:
A retailer's promotion objective might be to ______________ its target market about its
marketing mix.
A. inform
B. persuade
C. remind
D. Any of these might be a promotion objective.
Answer:
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:
Performance analysis:
A. is based on qualitative factors, as contrasted with sales and cost analysis which are
based on quantitative data.
B. is most useful in situations where the iceberg principal is not likely to be a concern.
C. indicates why problems have occurred and how to solve them.
D. may be based on several different performance indexes.
E. All of these are true.
Answer:
Behavioral (as opposed to demographic) segmenting dimensions include:
A. family life cycle.
B. geographic location.
C. education.
D. social class.
E. purchase relationship.
Answer:
