The four utilities marketing creates are
a. product, price, promotion, and place.
b. form, function, value, and people.
c. monopoly, monopolistic competition, pure competition, and oligopoly.
d. form, place, time, and possession.
e. natural gas, fossil fuel, electricity, and water.
Answer:
Figure 1.
Which of the following is an element of total logistics cost?
a. new product development
b. inventories
c. advertising
d. personal selling
e. market research
Answer:
Marketing efforts to produce, promote, and reclaim environmentally sensitive products
are referred to as
a. green marketing.
b. recycle marketing.
c. cause marketing.
d. environmental marketing.
e. recycling.
Answer:
DuPont assigned chemists, sales and marketing executives, and regulatory specialists to
create an herbicide for corn growers that recorded sales of $57 million in its first year.
This type of sales approach is referred to as __________.
a. partnership selling
b. missionary selling
c. team selling
d. order taking
e. formula selling
Answer:
Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults
thought about milk. The dairies wanted to __________ chocolate milk in the minds of
adult consumers.
a. segment
b. differentiate
c. reposition
d. explain
e. promote
Answer:
A buy class situation affects buying center tendencies in different ways. If there is one
person involved, the problem definition is well-defined, and the buying objective is to
find the low-priced supplier, the buy class situation is a
a. new buy.
b. modified rebuy.
c. conditional rebuy.
d. straight rebuy.
e. standard reorder.
Answer:
You greatly admire a set of Waterford crystal serving bowls you see at a dinner party
and decide to buy two despite their cost of $250 each. They are only available in your
area in a Waterford shop 40 miles from campus. Into which classification of consumer
products would the Waterford crystal serving bowls fall?
a. convenience products
b. shopping products
c. specialty products
d. unsought products
e. discretionary products
Answer:
Which of the following laws has the purpose of protecting competition?
a. Prevention and Enforcement Act
b. Clayton Act
c. Federal Trade Commission Act
d. Fair Trade Act
e. Unfair Practices Act
Answer:
A retailer of children’s clothing had net sales of $72,000, but to get those sales she had
to reduce her prices by $2,000. Calculate her markdown.
a. 0.35 percent
b. 2.78 percent
c. 3.50 percent
d. 3.70 percent
e. 26.7 percent
Answer:
Research shows that sales arising from cross-channel shoppers dwarf exclusive online
retail sales. Retail sales revenue from cross-channel shoppers is estimated to be about
__________ times greater than online retail sales.
a. two
b. three
c. five
d. seven
e. ten
Answer:
The level in an organization where top management directs overall strategy for the
entire organization is referred to as the
a. corporate level.
b. functional level.
c. CMO level.
d. strategic level.
e. tactical level.
Answer:
Specialty stores that dominate the market are referred to in the retail trade as
_________.
a. hypermarkets
b. category killers
c. specialty outlets
d. regional dominators
e. general merchandise stores
Answer:
Channel conflict refers to
a. disagreements over the trade discounts allotted to each level of the distribution chain
by the Federal Trade Commission.
b. regulatory restrictions limiting the number of distributors that can sell a producer’s
products.
c. when one channel member believes another channel member is engaged in behavior
that prevents it from achieving its goals.
d. when one distributor carries two competing brands.
e. when the producer doesn”t allow other channel members to have input regarding
product specifications or benefits.
Answer:
Demographics refers to
a. the description of a population according to its values or cultural beliefs.
b. an objective measurement of a person’s likelihood to purchase a product or service.
c. the psychological profile of prospective consumers.
d. the density of a population in a geographic area.
e. the description of a population according to selected characteristics such as age,
gender, ethnicity, income, and occupation.
Answer:
Ampro-Mag is a small company that makes materials for safely controlling hazardous
spills of all kinds. It sells these items as a neutralizing kit priced at $100 each. The costs
of the materials that go into each kit are $25. It costs $5 in labor to assemble a kit. The
company has monthly expenses of $1,000 for rent and insurance, $200 for heat and
electricity, $300 for advertising in trade journals, and $3,000 for the monthly salary of
its owner. Ampro-Mag’s average revenue per unit is
a. $30.
b. $70.
c. $100.
d. $130.
e. $4,500.
Answer:
One advantage of using magazines as an advertising medium is
a. it takes a relatively short time to place the ad.
b. there is little need or benefit to incorporate four-color graphics.
c. there is little noise in the communications process.
d. many are available as digital versions of their print counterparts.
e. the cost of placing a magazine ad is extremely low.
Answer:
Figure 1.
The box with the “?” in Figure 1. above leads to which of the following as a result of
the imposition of tariffs and quotas based on protectionist policies of a country?
a. an increase in world trade
b. a decrease in world trade
c. a limit on exports
d. a limit on imports
e. countertrade
Answer:
Managing for long-run profits implies that a company
a. will give up immediate profit in exchange for achieving a higher market share in
hopes of penetrating competitive markets.
b. will maintain a given price range to ensure there is no loss of customers over time,
even if the profit margin declines.
c. all profits will be invested in bonds or other certificates of deposit in order to
counteract any drastic economic changes in the future.
d. all profits will be reinvested into market research or product research rather than
returned to shareholders.
e. all products, product lines, or divisions that cannot maintain their pricing goals will
be dropped.
Answer:
Figure 1.
Figure 1. above represents the six steps in the price-setting process. Which letter
represents the step where a firm would offer discounts?
a. “E”
b. “D”
c. “F”
d. “C”
e. “B”
Answer:
Each year, advertisers spend millions of dollars during the Super Bowl half-time show.
These marketers hope to reach the millions of sports enthusiasts tuned into the NFL’s
greatest spectacle. Unfortunately, during the half-time festivities, many viewers dash to
the kitchen for a sandwich and a soda and do not see or hear the persuasive promotional
messages of the advertisers. The desire for food and drink is an example of
__________, which inhibits effective communication.
a. distraction
b. diversion
c. ineffective encoding
d. information overload
e. noise
Answer:
The assistant heard his supervisor in the supply room yell, “Call Crate & Barrelwe need
another case of its coffee mugs for the conference next week.” The supervisor was
asking the assistant to make a
a. new buy.
b. straight rebuy.
c. modified rebuy.
d. make-buy.
e. standard reorder.
Answer:
Which of the following is an advantage inherent in the use of licensing?
a. The foreign country gains employment.
b. There is an exemption from domestic trade regulations.
c. There is an increase in potential profit gains.
d. The licensee retains control of its product.
e. The licensee is protected from creating a potential competitor.
Answer:
Burroughs Wellcome is the developer and maker of AZT, which is a drug to treat
persons afflicted with AIDS. The firm charges each patient $6,500 annuallymore than
many AIDS patients can afford. This is an example of the manufacturer adhering to its
a. utopian responsibility.
b. moral idealism.
c. social responsibility.
d. cause marketing strategy.
e. profit responsibility.
Answer:
Geek Squad set out to provide timely and effective help with all computing needs
regardless of the make, model, or place of purchase. Employees were called “agents”
and wore uniforms with a Geek Squad logo to create a “humble” attitude that was not
threatening to customers. Agents drove a black-and-white
a. Chrysler Neon.
b. Ford Focus.
c. Volkswagen Beetle.
d. Dodge Caravan.
e. Toyota Prius.
Answer:
An evaluation of whether components and assemblies will be purchased from outside
suppliers or built by the firm itself is referred to as a
a. modified rebuy.
b. make-buy decision.
c. new buy.
d. cost analysis.
e. buy class decision.
Answer:
A business firm refers to
a. a subsidiary, division, or unit of an organization that markets a set of related offerings
to a clearly defined group of customers.
b. a legal entity engaged in business activities solely with the intent of serving its
employees without the intent of making a profit.
c. a privately owned organization that serves its customers to earn a profit so that it can
survive.
d. a group of people united through contractual or corporate ownership.
e. a publicly owned organization that serves the general population.
Answer:
TUMI brand briefcases are very expensive, high-end briefcases that are generally sold
in specialty luggage shops. Which of the following groups would be the most likely
target market for TUMI brand briefcases?
a. police officers
b. executives
c. construction workers
d. postal workers
e. students
Answer:
CPM Marketing Dashboard
According to the CPM Marketing Dashboard above, the CPM for the Super Bowl
would be approximately
a. $11.
b. $27.
c. $119.
d. $155.
e. $224.
Answer:
Linda contends that she can taste the difference between fat-free cheeses and those with
regular fat content. Linda is exhibiting
a. cognitive dissonance.
b. selective retention.
c. stimulus discrimination.
d. selective comprehension.
e. stimulus generalization.
Answer:
Demographics describe all of the following population characteristics EXCEPT:
a. income.
b. age.
c. gender.
d. zip code.
e. ethnicity/race.
Answer:
During the planning phase of an IMC program, a firm will identify the target audience,
specify the promotion objectives, set the budget, __________, design the promotion,
and schedule the promotion.
a. pretest the promotion
b. state the mission
c. identify possible advertising or promotional firms
d. carry out the promotion
e. select the right promotional tools
Answer:
Among business products, support products that include tools and office equipment are
referred to as
a. installations.
b. supplies.
c. raw materials.
d. accessory equipment.
e. components.
Answer: