Compared to a product-market, a generic market:
A. Is more narrowly defined.
B. Has sellers offering a more diverse set of products.
C. Can never help marketers identify opportunities.
D. None of these is a good answer.
Answer:
Which of the following retailers spent the LEAST amount on advertising as a
percentage of sales?
A. Hotels and motels
B. Grocery stores
C. Furniture stores
D. Jewelry stores
E. Women’s clothing stores
Answer:
The number of times an intermediary’s average inventory is sold in a year is called the:
A. stockturn rate.
B. asset factor.
C. inventory ratio.
D. markup ratio.
E. ROI (return on inventory).
Answer:
The “wheel of retailing” theory says that:
A. retailers go through cycles from high costs and prices to lower costs and profits.
B. general stores will dominate U.S. retailing again in the next century.
C. new types of retailers enter as low-status, low-margin, low-price operators and
eventually offer more services and charge higher prices.
D. none of these alternatives about the “wheel of retailing” is correct.
Answer:
Which of the following statements about demographic changes in the United States is
not true?
A. Demographic changes like population groupings are difficult to anticipate.
B. Senior citizens will grow in number rapidly from 2005 to 2025.
C. The number of kids age 0-9 will grow from about 40 million to about 45 million
from 2005 to 2025.
D. In 2025 there will be fewer people over age 80 than under age 10.
E. In 2005, the number of kids 0-9 was about the same as the number of those in their
20s.
Answer:
Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a
supplier to design and manufacture the product. It will most likely use ______________
buying.
A. description
B. negotiated contract
C. inspection
Answer:
_____ refers to the difference between the benefits a customer sees from a market
offering and the costs of obtaining those benefits.
A. Operating cost
B. Profit margin
C. Customer value
D. Net value
E. Satisfaction
Answer:
A British firm selling in the U.S. prices its product at $100. The initial exchange rate is
0.80 pounds per dollar. If the new exchange rate is 0.75 pounds per dollar, the revenue
for the British firm from a single sale would drop by
A. 80 pounds.
B. 5 pounds.
C. 75 pounds.
D. 10 pounds.
E. 8 pounds.
Answer:
A marketing manager might offer a cash discount to channel members to:
A. increase sales during a slow period.
B. encourage buyers to pay their bills quickly.
C. reduce shipping or selling costs.
D. encourage them to buy in larger quantities.
E. All of these alternatives are correct.
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.
Which product class best describes how deal prone customers view SDF cereals?
A. Staples
B. Homogeneous shopping product
C. Heterogeneous shopping product
D. Regularly unsought product
Answer:
Packaging
A. can serve as a useful enhancement tool.
B. can increase costs to the consumer.
C. can serve as a useful promotional tool.
D. is concerned with protecting the product in shipping and on the shelf.
E. All of these alternatives are correct.
Answer:
Firms develop _____ to promote fair and honest dealings with all stakeholders inside
and outside of the organization.
A. marketing plans
B. marketing departments
C. codes of ethics
D. intermediaries
E. a marketing orientation
Answer:
A pencil, a dictating machine, and a word processor might compete in the same
A. target market.
B. generic market.
C. product-market.
D. Any of these could be correct.
Answer:
Eddie Falco went to a grocery store to buy his favorite brand of ice cream. However,
the store was temporarily out of that brand, so he looked over the other familiar brands
and decided to try a well-advertised brand. This case illustrates:
A. Routinized response behavior
B. Intensive problem solving
C. Limited problem solving
D. Extensive problem solving
Answer:
Which of the following statements about transporting by rail is True?
A. Rail transportation is the slowest mode of transportation.
B. Rail transportation is the least expensive mode of transportation.
C. Rail transportation is good for long-distance transportation of heavy, bulky items.
D. Railroads are most efficient at handling less-than-carload (LCL) shipments.
E. All of these statements about transporting by rail are correct.
Answer:
Which of the following statements is true about average cost-pricing?
A. It can result in losses if actual sales are higher than expected.
B. It is more profitable if actual sales are lower than expected.
C. It does not take the demand curve into account when setting prices.
D. It works better in practice than it does in theory.
E. It can be used to set a price without an estimate of the quantity to be sold.
Answer:
In the learning process, _____ can be in the form of products, signs, ads, and other
stimuli in the environment.
A. reinforcement
B. responses
C. signals
D. retention
E. cues
Answer:
The statement, “Almond Joy is made with real almonds” is an example of:
A. a belief
B. an intention
C. an attitude
D. a cue
E. none of these alternatives is correct
Answer:
Successful companies should:
A. leave the new product development process to anyone who happens to be interested
in taking the initiative.
B. only leave the new product development process to someone from the sales
department.
C. put a person, a team, or a department in charge of the new product development
process.
D. not allow the top-level management to get involved in the new product development
process.
E. not put anyone in charge of the new product development process.
Answer:
Which of the following costs decrease with increase in output?
A. Total variable cost
B. Total fixed cost
C. Total cost
D. Average fixed cost per unit
E. Sales commissions
Answer:
When using screening criteria to evaluate opportunities:
A. Marketers must try to match opportunities to the firm’s resources and objectives.
B. Quantitative but not qualitative criteria should be considered.
C. Opportunities that are not expected to be profitable after one year of implementation
should always be dropped.
D. The firm’s weaknesses should be ignored.
E. All of these are correct.
Answer:
Individual products:
A. are part of product lines but not product assortments.
B. may require their own marketing mixes.
C. are usually distinguished by brand only.
D. are part of product assortments but not product lines.
E. none of these alternatives is correct.
Answer:
Frustrated by a lack of freedom to make decisions at her work, Betty quit her job to find
one with greater independence. What type of need motivated Betty’s actions?
A. Psychological
B. Social
C. Physiological
D. Economic
E. Cultural
Answer:
The sales manager for a producer of consumer convenience products should recognize
that the company may need:
A. order getters to sell its established line to regular wholesaler customers.
B. missionary salespeople to support its wholesalers.
C. order takers to open up new territories.
D. technical specialists to sell to purchasing agents.
E. All of these jobs may be needed.
Answer:
Customer relationship management (CRM) data is generally used by firms to:
A. reduce their focus on local customers.
B. treat all submarkets as a single huge market.
C. develop a prediction score for each customer.
D. limit the need for customization.
E. deliver the same marketing mix to all customer segments.
Answer:
_____ involves setting one price for a set of products.
A. Price lining
B. Odd-even pricing
C. Product bundle pricing
D. Bait pricing
E. Price leading
Answer:
Some marketers stretch the meaning of “attitude” to include:
A. intention to buy.
B. needs.
C. beliefs.
D. psychographics.
E. actual purchasing behavior.
Answer:
In the context of new product development, which of the following observations is true
regarding the balance of market needs and company resources?
A. Marketing managers must recognize that new product projects need to meet
return-on-investment goals.
B. A company’s R&D specialists, operations, and marketing personnel must work
independently to evaluate the feasibility of new ideas.
C. Marketing managers need to develop elaborate marketing plans for goods or services
even if the firm can’t produce them at a given point.
D. Marketing managers should avoid pinpointing competition.
Answer:
Use this information for question that refer to the Yummy Ice Cream case.
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company’s new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy’s ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy’s take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago, the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
The promotion for Yummy Mondaes is a good example of:
A. pushing
B. direct-response promotion
C. pulling
D. integrated marketing communications
E. noise in the communication process
Answer:
Marketing research is concerned with developing and analyzing new information to
help marketing managers do a better job of:
A. executing marketing strategies.
B. planning marketing strategies.
C. making operational decisions.
D. controlling marketing strategies.
E. All of these alternatives are correct.
Answer:
Misty Hancock is a sales rep for a computer producer. Her salary last year was $30,000,
and she earned another $5,000 in sales commissions. She paid $6,000 in taxes, and
spent $8,000 on food, housing, a car, and other “necessities.” What is Misty’s
discretionary income?
A. $21,000
B. $34,000
C. $15,000
D. $24,000
E. $8,000
Answer: