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The marketing manager for a financial services firm knows that customer preferences
for mutual funds and bond accounts will differ depending on the current interest rate.
She must plan her offerings with the _____ environment in mind.
A. economic
B. social
C. technological
D. cultural
E. legal
Answer:
The observing method in marketing research:
A. uses personal interviews.
B. may require customers to change their normal shopping behavior.
C. is used to gather data without consumers being influenced by the process.
D. is not suitable for obtaining primary data.
E. none of these alternatives is correct.
Answer:
When individual firms set their own prices-sometimes holding them steady for long
periods of time-rather than letting daily market forces determine prices, such prices are
called:
A. flexible prices.
B. parallel prices.
C. equilibrium prices.
D. administered prices.
E. fixed prices.
Answer:
Which of the following would be MOST LIKELY to use individual brands rather than a
family brand for its products?
A. Manufacturer of knives and scissors for "top quality" market.
B. Manufacturer of canned pet food and sandwich spread for final consumers.
C. Manufacturer of sweeping compounds, brooms, and mops for business firms.
D. Manufacturer of flour for the "mass market".
E. Manufacturer of packaged potato chips and crackers.
Answer:
A transistor radio, an MP3 player, and a portable CD player might compete in the same
A. single target market.
B. multiple target market.
C. product-market.
D. combined target market.
E. generic market.
Answer:
Setting a few price levels for a product line and then marking all items at these price
levels is:
A. leader pricing.
B. price lining.
C. product-bundle pricing.
D. penetration pricing.
E. odd-even pricing.
Answer:
Which of the following organizations should apply the marketing concept?
A. National Park Service.
B. National Federation of the Blind.
C. Christian Children's Fund.
D. United States Postal Service.
E. All of these organizations should apply the marketing concept.
Answer:
The text says "markups":
A. should always be stated as a percentage of cost.
B. are a percentage of selling price-unless 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:
Product warranties are the focus of the ______________ Act.
A. Lemon
B. Magnuson-Moss
C. Sherman
D. Federal Trade Commission
E. Robinson-Patman
Answer:
The major function of auction companies is to:
A. deliver the products they handle.
B. help finance by owning products.
C. take title to the products they sell.
D. provide a place where buyers and sellers can complete a transaction.
E. All of these are major functions of auction companies.
Answer:
Competition is toughest in which of the following product life cycle stages?
A. Market introduction
B. Market growth
C. Market maturity
D. Market development
E. Market hold
Answer:
Ad spending for television in the U.S. in 2013 was about:
A. $25 billion
B. $35 billion
C. $45 billion
D. $55 billion
E. $65 billion
Answer:
Which of the following is NOT true concerning adoption curve groups?
A. The early adopter group tends to have the greatest contact with salespeople.
B. Early adopters are often unusual people who are not seen as opinion leaders.
C. Innovators rely more on impersonal sources of information than on salespeople.
D. Business firms in the innovator group are usually rather specialized and willing to
take risks.
E. The early majority group have a lot of contact with mass media, salespeople, and
opinion leaders.
Answer:
Data that has already been collected or published is:
A. useful data.
B. secondary data.
C. primary data.
D. free data.
E. rarely-if ever-useful for marketing decision making.
Answer:
A retailer's target market consists of people who usually will not consider a new idea
until others have tried it-and liked it. These potential customers have a lot of contact
with mass media and salespeople, but usually are not opinion leaders. These target
customers are:
A. early adopters.
B. laggards.
C. innovators.
D. the early majority.
E. the late majority.
Answer:
Regarding Internet advertising:
A. Search ads know what customers are looking for based on the keywords that
customers use in a search.
B. Ads can be delivered to customers based on which other websites customers have
visited.
C. Most ads try to get customers to click-through to the firm's website.
D. Most advertisers pay only if ads deliver.
E. All of these alternatives are correct.
Answer:
A lawn care firm selling by phone to people listed in the telephone directory should use
which of the following sales presentations?
A. consultative selling approach.
B. selling formula approach.
C. prepared sales presentation.
D. target market presentation.
E. None of these is a good answer.
Answer:
The national law which is primarily concerned with regulating product warranties is
A. the Lanham Act.
B. the Magnuson-Moss Act.
C. the Uniform Product Code Act.
D. the Federal Fair Packaging and Labeling Act.
E. None of these is a good answer.
Answer:
The Federal Trade Commission Act of 1914 is primarily concerned with:
A. deceptive warranties.
B. price-fixing agreements.
C. conspiracies in restraint of trade.
D. mergers which might substantially lessen competition.
E. unfair methods of competition.
Answer:
Of the four types of opportunities firms can pursue, market penetration often appeals to
marketers because:
A. it requires the creation of new products.
B. it involves selling current products in familiar markets.
C. it involves selling current products in unfamiliar markets.
D. it doesn't require a more effective use of the marketing mix.
E. it is guaranteed to succeed.
Answer:
Gross national income (GNI):
A. is the total market value of goods, but not services, produced in a year.
B. is an excellent basis for comparing consumer well-being across different cultures and
economies.
C. is a measure similar to GDP but does not include income earned by foreigners who
own resources in that nation.
D. is the total market value of services, but not goods, produced in a year.
E. All of these are true.
Answer:
Which of the following is the BEST example of the micro-macro dilemma?
A. Pepsi Blue sales went up, but total sales of all soft drinks went down.
B. A small group of loyal consumers really like RC Cola best, but most consumers don't
like it at all.
C. The deposit on returnable soft drink bottles is about equal to the cost of the bottle.
D. Paper cups for soft drinks are convenient, but they often end up as litter along the
highway.
E. Snapple beverages are more popular in Texas than in the rest of the U.S.
Answer:
A market in which sellers offer various, often diverse, ways of satisfying needs is called
a _____ market.
A. product
B. diverse
C. general
D. relevant
E. generic
Answer:
In the idea evaluation stage
A. an actual product is developed.
B. companies cannot estimate likely costs.
C. concept testing is used for getting reactions from customers.
D. there is some engineering to design and develop the physical part of a product.
E. the final ROI is estimated.
Answer:
Flexibility, geographic terms, and allowances are all related to
A. price.
B. product.
C. promotion.
D. place.
E. price and product.
Answer:
Applying the text's list of characteristics of a good brand name, which of the following
would be the poorest example of a good brand name?
A. Pizza Hut.
B. King Kong Chewing Gum.
C. DieHard flashlights.
D. General Electric TVs.
E. L'eggs hosiery.
Answer:
To get the sale price, customers
A. buy when they have to buy.
B. buy when the seller wants to sell.
C. have to buy things that they never need.
D. have to give up all consumer surplus.
E. buy when they have a necessity.
Answer:
"Fashion" is the currently accepted or popular ______________
A. trend.
B. idea.
C. fad.
D. assortment.
E. style.
Answer:
Branding:
A. is especially helpful with a low quality product.
B. is handled by manufacturers, but not intermediaries.
C. helps consumers, but it is bad for the firm because it increases expenses.
D. is more likely to be successful if demand for the general product class is strong
enough to allow a profitable price.
E. None of these alternatives is correct.
Answer:
Which of the following is the best example of the marketing concept in action?
A. A product manager tells her sales force "the inventory in the warehouse must be sold
if we are to make a profit, so redouble your sales efforts."
B. A manufacturer of industrial chemicals adapts its formulas and goes after the big
consumer cleaning market.
C. A cleaning supplies firm learns that many consumers are having trouble hiring
maids-so it develops a plan to offer customers complete house cleaning services.
D. An Internet retailer finds that shoppers are abandoning their shopping carts before
checking out, so it promotes its $10 discount on each customer's first purchase.
E. A student group wants to hold an awards banquet, so it buys Krispy Kreme donuts
and sells them to friends who want to help the club achieve its objectives.
Answer:
In the context of segmenting international markets, which of the following statements is
true?
A. Segmenting based on demographic, cultural, and other characteristics helps find
regional or national submarkets that are similar.
B. Qualifying and determining dimensions of segmenting work independent of each
other in marketing strategy planning.
C. It is not possible for each different submarket within a broad product-market to be
motivated by a different set of segmenting dimensions.
D. Segmenting dimensions become less specific when the target market segment seeks
to purchase a particular brand of a product.
E. Critical data is easily available and highly dependable as firms move into
international markets.
Answer:
Use this information for question that refer to the Sporting Products, Inc. (SPI) case.
Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about
how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI
sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent
markup and most of its 'sport shop" retailer customers, like Robinson's Sporting Goods,
use a 33 percent markup to arrive at the price they charge final consumers. However,
one fast growing retail chain, Sports Depot, only uses a 20 percent markup for
basketballs, even though it pays Wholesale Supply the same price as other retailers.
Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them
at cost-to draw customers into its stores and stimulate sales of its pricey basketball
shoes.
Sports Depot is also using other pricing approaches that are different from the sports
shops that usually handle SPI products. For example, Sports Depot prices all of its
baseball gloves at $20, $40, or $60-with no prices in between. There are three big bins -
one for each price point.
Todd is also curious about how Sports Depot's new strategy to increase sales of tennis
balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit
groups who resell the balls to raise money. For example, a service organization at a
local college bought 2,000 tennis balls printed with the college logo. Sports Depot
charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print
the logo. The service group plans to resell the tennis balls for $2.50 each and contribute
the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is
considering adding tennis racquets to the lines it produces. This would require a
$500,000 addition to its factory as well as the purchase of new equipment that costs
$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd
thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow
most retailers to add their normal markup and make a profit. However, if Sports Depot
sells the racquet at a lower than normal price other retailers might decide to carry it.
What is the final selling price Robinson's Sporting Goods charges for a SPI basketball?
A. $10.00
B. $15.00
C. $15.75
D. $20.80
E. None of these alternatives is correct.
Answer:
A "marketing plan" should include:
A. some control procedures.
B. what company resources will be needed-and at what rate.
C. what marketing mix is to be offered to whom-and for how long.
D. what sales and profit results are expected.
E. All of these are included in a marketing plan.
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:
Selling through only one wholesaler or retailer in a particular geographic area is called:
A. Ideal market distribution
B. Intensive distribution
C. Selective distribution
D. Exclusive distribution
E. Equivalent distribution
Answer:
