BUSMT 553 Midterm

Type

Quiz

Book Title

A Preface to Marketing Management 14th Edition

ISBN 13

978-0077861063

October 29, 2015

Which of the following is a research method that deals with manipulating one variable

and examining its impact on other variables?

A. Marketing audit

B. Observational research

C. Archival research

D. Experimental research

Answer:

By investing solely in domestic operations or not being willing to adapt products to

foreign markets, U.S. companies:

A. will find it easier to preempt competitors' global moves.

B. can maximize their potential to achieve economies of scale.

C. are more susceptible to foreign incursions.

D. are more likely to have diminished operating costs.

Answer:

Paper&More Inc. is an online retailer of printers and accessories. A recent

advertisement on its website reads, "Buy a compact photo printer and single-use color

cartridge combo and save 30% percent off retail prices! Limited period offer. Act now!"

Which of the following pricing strategies is the retailer using to sell its products?

A. Odd-even pricing

B. Prestige pricing

C. Bundle pricing

D. Optimized pricing

Answer:

In terms of uniformity, which of the following is a difference between services and

goods?

A. Owing to customer non-participation, services are often linear, while goods are

non-linear.

B. Services often involve a short-term, impersonal relationship between buyer and

seller, while goods often involve a personal, long-term relationship.

C. Because of high involvement on the part of a buyer, services tend to be unique, while

goods do not vary in quality.

D. Services can be inventoried uniformly, while goods face stockouts due to their

heterogeneous nature.

Answer:

Which of the following is essential to the generation of new product ideas?

A. Technology penetration strategies

B. Technology pull research activities

C. Market push research strategies

D. Technology push research activities

Answer:

Identifying huge consumer demand, Jumpstart Inc., an automobile manufacturer,

pioneered the production of battery-operated cars. The product met with initial success

in the market leading Jumpstart Inc. to increase production in huge volumes. However,

over a period of time, consumer needs evolved and consumers sought more

sophisticated technology-driven cars, and the sales of these cars dropped heavily. This

illustrates the _____ risk that was not considered during the idea screening phase.

A. functional

B. hierarchical

C. market

D. internal

Answer:

Which of the following is true of sales quotas?

A. They are limited in the sense that they can be used only to evaluate salespersons'

performances but not to evaluate and control their efforts.

B. They are not representative of specific sales goals assigned to each territory or unit

over a designated time period.

C. They allow a management to pinpoint individuals and units that are performing

above average and those experiencing difficulty.

D. They allow a company to track the amount of profitable sales a company is engaging

in.

Answer:

A business unit that negotiates purchases, sales, or both but does not take title to the

goods in which it deals is known as a(n) _____.

A. merchandiser

B. agent

C. facilitator

D. broker

Answer:

Bates Inc. is an enterprise comprising three parts. Its biotech section, which is working

to develop crops that are pest and disease-resistant, provides about half of its sales.

Pharmaceuticals from its B.D. Feller subsidiary contribute a third of its revenues; and

food products, dominated by the artificial sweetener NutroSweet, make up less than

fifteen percent of its total revenue. These three divisions represent Bates's _____.

A. strategic business units

B. buying centers

C. venture teams

D. cross-functional units

Answer:

In terms of the marketing communication process, translating a product idea or

marketing message into an effective ad is called:

A. encoding.

B. allocating.

C. disseminating

D. positioning.

Answer:

Which of the following best describes a merchant middleman?

A. A middleman who buys goods outright and takes title to them

B. A middleman who serves as a go-between for a buyer or seller without assuming title

risks

C. A middleman who buys from manufacturers and sells to retailers

D. A middleman who possesses limited authority with regard to terms of sale

Answer:

Mars Inc., an oil and gas incorporation, opened its first unique service station in

Mexico. The service station consisted of pumping islands, convenience stores, and

separate food courts. Owing to the station's success, the company opened more than 300

service stations worldwide. Identify the offensive strategic goal that can explain why

Mars expanded its services globally.

A. To increase long-term growth and profit prospects

B. To prevent global consolidation

C. To preempt competitors' from opening similar stores

D. To avoid being locked out of markets by arriving too late

Answer:

Which objective allows market share to decline in order to maximize earnings and cash

flow and is appropriate for weak cash cows, weak question marks, and dogs?

A. Hold share

B. Harvest

C. Divest

D. Build share

Answer:

A defensive goal multinational firms seek to achieve when investing in other countries

is to:

A. increase long-term growth and profit prospects.

B. avoid being locked out of future markets by arriving too late.

C. take advantage of economies of scale.

D. improve overall market position.

Answer:

Which of the following is true of retail cooperative organizations?

A. They involve a parent company and an independent firm entering into a contractual

relationship to set up and operate a business in a particular way.

B. They involve a group of independent retailers uniting and agreeing to pool buying

and managerial resources to improve competitive position.

C. They involve a wholesaler contracting with a number of retailers performing channel

functions for it.

D. They involve a retailer assuming ownership of its primary manufacturer through the

presence of a channel leader.

Answer:

In terms of perishability, which of the following is a difference between services and

goods?

A. Services often can be separated from the person providing them, while goods cannot

be usually sold by different people.

B. Services generally solicit minimal customer interaction, while goods involve

significant levels of customer interaction.

C. Services can be used only at the time they are offered, while goods can be placed in

an inventory.

D. Services can be stored and transported across geographical regions, while goods

cannot be inventoried for use at another time.

Answer:

_____ are discounts often offered in the form of pricing reductions in exchange for a

channel member featuring a product in store advertising or on in-store displays.

A. Quantity discounts

B. Slotting allowances

C. Promotional allowances

D. Rebates discounts

Answer:

In which of the following types of organizations are buyers most likely to be less

innovative in order to maintain acceptance and status within the organization?

A. Adaptive

B. Lethargic

C. Supportive

D. Autonomous

Answer:

Which of the following refers to developing new products and cultivating new

markets?

A. Market penetration

B. Diversification

C. Product development

D. Differentiation

Answer:

Booker & Price is a large retail store that makes bulk purchases of grocery at wholesale

rates from several grocery suppliers. It then resells these products to consumers at a

marginally higher price to make a profit. Under which of the following categories of

organizational buyers does Booker & Price fall?

A. Institutions

B. Producers

C. Government agencies

D. Intermediaries

Answer:

The qualifying process where a salesperson must determine whether a prospect is a true

prospect is known as _____.

A. canvassing

B. screening

C. networking

D. spotting

Answer:

Price elasticity is measured by:

A. dividing relative changes in the quantity sold by the relative changes in price.

B. multiplying the price of a unit product with the number of units sold.

C. dividing the number of units produced by the number of units sold.

D. adding the relative changes in price to the rate-of-return per product unit.

Answer:

Rajiv owns a large department store. He identifies that he has to cut costs owing to an

organizational crisis. He feels that if all the fluorescent light bulbs in the store were

replaced with energy-efficient LED light bulbs, then he could save significantly on the

cost of electricity. Identify the stage of the organizational buying process that Steven is

currently in.

A. Purchase activity

B. Postpurchase evaluation

C. Organizational need

D. Vendor analysis

Answer:

According to Maslow's hierarchy, which of the following is true of belongingness and

love needs?

A. They consist of the primary needs of the human body.

B. Nonsatisfaction of these needs tends to affect mental health.

C. They tend to dominate when all other needs are unsatisfied.

Answer: