Opinion leaders:
A. are usually better educated.
B. are usually wealthier.
C. are people who influence others.
D. are rarely actually involved in product-related discussions with the people who
“follow” them.
E. All of these alternatives are true.
Answer:
Which of the following is true of pioneering advertising?
A. It helps turn potential customers into adopters.
B. It tries to develop selective demand for a specific brand.
C. It points out product advantages to affect future buying decisions.
D. It tries to keep the product’s name before the public.
E. It is used primarily to reinforce previous promotion.
Answer:
A widely used measure of income in most countries is:
A. gross national income.
B. total consumption expenditures.
C. disposable personal product.
D. population times GNI.
E. socio-economic product.
Answer:
Which of the following is a benefit of branding from the perspective of the
manufacturer?
A. Brands improve a company’s image.
B. Brands speed acceptance of new products.
C. Brands reduce selling time and effort, especially for new products marketed under
the same name.
D. All of these are benefits to manufacturers.
Answer:
“Breakthrough opportunities” are opportunities that:
A. help innovators develop hard-to-copy marketing strategies.
B. may be turned into marketing strategies that will be profitable for a long time.
C. help the firm develop a “competitive advantage.”
D. help a firm satisfy customers better than some competitor.
E. All of these apply to breakthrough opportunities.
Answer:
Consumerism has encouraged
A. nutritional labeling.
B. truth-in-lending.
C. unit pricing.
D. plain-language contracts and warranties.
E. all of these alternatives are correct.
Answer:
_______ means that the marketing mix is distinct from what is available from a
competitor.
A. Operational
B. Visible
C. Differentiation
D. Competitive
E. None of these is correct
Answer:
The president of a company that produces cardboard boxes is concerned about the large
number of competitors with extra capacity. As he put it, “our best shot is in the hands of
our sales manager-she makes all of our marketing decisions and is creative enough to
figure out how to sell more boxes.” It seems that this company is run as if it were in the:
A. production era.
B. marketing company era.
C. simple trade era.
D. sales era.
E. marketing department era.
Answer:
“Positioning” is a marketing management aid that refers to:
A. how closely existing products match customers’ ideal preferences.
B. how customers think about proposed and/or present brands in a market.
C. whether some products are viewed as very similar.
D. All of these are true.
Answer:
A producer is most likely to use a ‘selling agent” if:
A. he lacks marketing know-how and working capital.
B. he produces a broad product line.
C. he mainly needs aggressive selling.
D. his target customers are concentrated in a small geographic area.
E. he sells a technical product that needs a lot of follow-up service.
Answer:
Jeffrey O’Donnell works for a producer of dairy products and knows all about these
products. He is responsible for only two very large chain customers. Other sales reps,
like Jeffrey, call on other large chains for this producer. They regularly call on the
central offices of these big retail chains and encourage them to buy the company’s full
line. Jeffrey is:
A. a missionary salesperson.
B. a retail order taker.
C. a technical specialist.
D. a manufacturers’ agent.
E. a member of his company’s major accounts sales force.
Answer:
A busy mom stops at a 7-Eleven store on the way home from work to purchase some
bread, milk, and ice cream. What primary economic need is being satisfied by the
7-Eleven?
A. Dependability in use
B. Economy of purchase
C. Efficiency in operation
D. Convenience
Answer:
Which of the following statements is not true of the product life cycle?
A. How long a whole product life cycle takes, and the length of each stage, varies a lot
across products.
B. Although the life of different products varies, on average product life cycles are
getting longer.
C. The greater the comparative advantage of a new product over those already on the
market, the more rapidly its sales will grow.
D. If the product can be tried on a limited basis, without a lot of risk to the customer, it
can usually be introduced more quickly.
E. A product idea may be in a different life-cycle stage in different markets.
Answer:
Antidumping laws:
A. protect consumers from the high prices charged by monopolistic foreign producers.
B. set the maximum price a foreign producer can charge.
C. are used in an effort to control the minimum price of imported products.
D. make it illegal for a foreign producer to sell a product at a price level lower than
domestic producers.
E. force foreign producers to sell below cost if they want to compete with a nation’s
domestic producers.
Answer:
Pricing objectives should flow from, and fit in with,
A. shareholder expectations and market practices.
B. regulatory policies.
C. industry standards.
D. company-level and marketing objectives.
E. market price leader actions.
Answer:
Best Sound, Inc. placed a full-page color ad in Car Talk magazine-stressing the better
sound available with its car stereo product as compared to similarly priced products-to
try to affect its target market’s future buying decisions. This is an example of:
A. reminder advertising.
B. pioneering advertising.
C. direct competitive advertising.
D. institutional advertising.
E. indirect competitive advertising.
Answer:
The stockturn rate is
A. the firm’s ability to meet its short-term financial obligations.
B. the number of days that credit sales remains in receivables.
C. the number of times the average inventory is sold in a year.
D. the difference between net sales and cost of goods sold.
E. the ratio of sales to inventory.
Answer:
According to the text discussion on setting a marketing budget,
A. the most objective approach is to use “pushing” approaches.
B. the only practical alternative is to match what competitors are spending.
C. the most sensible approach is to determine the cost of the tasks to be accomplished.
D. the task method is likely to result in too low a budget when sales are going well.
E. it is generally best to simply use some predetermined percentage of past or forecast
sales.
Answer:
In the context of business opportunities in the government market, the General Services
Administration handles:
A. vendor analysis for the core industries.
B. vendor contracts for off-the-shelf goods and services.
C. administrative tasks for small service customers.
D. complaints filed against suppliers by organizational buyers.
Answer:
Reminder ads for a product work best in which stage of the adoption process?
A. Awareness
B. Interest
C. Evaluation and trial
D. Decision
E. Confirmation
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 service organization’s average cost for the printed tennis balls it buys from
Sports Depot?
A. $.50
B. $.75
C. $.95
D. $1.50
E. $2.00
Answer:
Literacy studies show that ______________ percent of adults (age 15 or older) cannot
read and write.
A. 10
B. 16
C. 38
D. 50
E. 60
Answer:
Saying that a “good” product-market segment should be substantial means
A. that the company does not have to worry about substantial competition for a long
time.
B. that people should have substantially different reactions to marketing mix variables.
C. it should be large enough to be profitable.
D. that people in different market segments should be as different as possible.
E. None of these choices is correct.
Answer:
Seeking a profit maximization pricing objective:
A. will help a firm to earn “all the traffic will bear.”
B. requires some knowledge of the firm’s demand curve to be implemented effectively.
C. with no competitors and an inelastic demand curve is likely to lead to “high” prices
in the short run.
D. may lead to a low penetration price.
E. All of these alternatives are correct.
Answer:
Unlike a generic market description, a product-market definition includes
A. customer needs.
B. customer types.
C. geographic area.
D. product type.
E. organization chart.
Answer:
The primary purpose of branding is:
A. to prevent competitors from stealing product ideas.
B. to identify a product.
C. to enhance package design.
D. to increase quality.
E. to boost customer satisfaction.
Answer:
Which of the following is LEAST likely to be classified as a marketing collaborator?
A. United Parcel Service (UPS).
B. Public Warehouse Corporation.
C. Broadband Communications Company.
D. MeadowView Aluminum Company.
E. Product Safety Testing Laboratories, Inc.
Answer:
In the market growth stage of the product life cycle:
A. competing products become almost the same in the minds of potential consumers.
B. distribution moves from intensive to selective.
C. many competitors drop out of the market.
D. total industry sales increase very slowly.
E. total industry profits reach their peak and begin to decline.
Answer:
The text discusses a four-level hierarchy of needs. Which of the following is NOT
included in that model?
A. Social needs.
B. Psychological needs.
C. Safety needs.
D. Physiological needs.
E. Personal needs.
Answer:
With regards to the Hispanic population, which of the following is not true?
A. About 23% of all children under 18 are Hispanic.
B. About 20% of the U.S. population is Hispanic.
C. In 2010, the Hispanic population of the U.S. was about 50.5 million.
D. Hispanics are the largest ethnic group in the U.S.
E. Hispanics are the fastest growing ethnic group in the U.S.
Answer:
To encourage potential buyers to take its new Model 3 sedan for a test drive, BMW
posts a video on its website of the Model 3 speeding down a winding mountain road.
This is an example of:
A. single-customer marketing.
B. advertising.
C. publicity.
D. personal selling.
E. sales promotion.
Answer:
The “universal functions of marketing”:
A. can be eliminated in advanced MACRO-marketing systems.
B. are performed differently and by different parties in different economies.
C. are never performed by consumers.
D. create various separations and discrepancies between producers and consumers.
Answer:
Warehouses that producers set up at separate locations away from their factories are
known as
A. progressive wholesalers.
B. manufacturers’ sales branches.
C. corporate chains.
D. hypermarkets.
E. retail production centers.
Answer:
When deciding how far to carry the segmenting process,
A. profit should be the balancing point-determining how unique a marketing mix the
firm can offer to some target market.
B. it is easier to develop effective marketing mixes for larger, more heterogeneous
segments.
C. cost considerations encourage less aggregating.
D. the threat of potential competitors suggests more aggregating.
E. All of these alternatives are true.
Answer:
In an oligopoly situation, a wise marketing manager will probably set the firm’s price
level:
A. at the competitive level.
B. on a negotiated basis-that is, customer by customer.
C. above competitors’ prices.
D. at least 10 percent below the price leader’s price.
E. below competitors’ prices.
Answer: