Sandi Barefoot sells the entire output of several small companies based in Silicon
Valley. Each of the companies designs and produces remote control devices. Sandi has
almost complete control of pricing and selling-because the engineers who started the
companies are mainly interested in inventing things. In addition, Sandi often provides
working capital to the producers, who have very limited financial resources. Sandi is
paid a substantial commission on all sales. Sandi is a:
A. broker.
B. selling agent.
C. field warehouser.
D. manufacturers’ agent.
E. factor.
Answer:
Which of the following countries is most likely to have the largest percentage of
consumers who regularly purchase online?
A. United Kingdom
B. Argentina
C. Poland
D. India
E. Turkey
Answer:
Which of the following observations about the total cost approach is NOT true?
A. Includes transportation costs.
B. Helps find the lowest total cost for the right service level.
C. Focuses on direct costs and doesn’t consider the possible costs of lost sales.
D. Uses the tools of cost accounting and economics.
E. Involves evaluating each possible physical distribution system and identifying all of
the costs of each alternative.
Answer:
Which of the following is the BEST example of a “generic market?”
A. The adult “personal expression” market
B. The roller blade market
C. The female exercise shoes market
D. The sports drink market
E. The sporting goods market
Answer:
Which of the following products probably would result in the lowest involvement
purchase for most consumers?
A. Paper towels
B. Summer vacation
C. CD player
D. Sweater
E. Cough syrup
Answer:
Smart tips for selling to business customers include all the following except:
A. Emphasize various benefits that meet the differing needs and interests of each
member of the buying center.
B. Offer fresh insight and ideas in e-mails and other correspondence.
C. Develop a marketing mix to satisfy the needs of the organization as well as the needs
of individual purchasing managers.
D. Show appreciation by offering desirable gifts to purchasing managers.
E. Explain how products and services will reduce the firm’s risk.
Answer:
Use this information for question that refer to the Super Gaming Company and
Accessories (SGCA) case.
Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories
(SGCA), is reviewing her company’s plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming
stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide,
but in California is carried in only 10 percent of stores. So, Kayla has set an objective of
being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits
its target market of teen and young adult gamers. The SuperDuperGamer uses a new
technology and is expected to be a breakthrough product, but it will be important to
build awareness for it to succeed. So, the advertising objective is for 40% of SGCA’s
target market to be aware of the new SuperDuperGamer model within 3 months. SGCA
also wants to help its retailers reduce their current stock of SuperGamer computers
before the new model comes out in a month. The SuperGamer has been on the market
for two years and has been a top seller in the category. SGCA’s advertising objective for
the SuperGamer computer is to reduce current dealer stock by 80% within the next
month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to
significantly enhance the game-playing experience with older computers. Research with
gamers show that it is very well received, so the advertising objective for the
SuperEnhancer sound card is to gain 40% market share among all gaming-specific
sound cards in the next year. To help achieve that objective, Jurgenson is planning to
use an ad that shows the sound card and a game player being knocked off his chair by
the sound. The headline on the ad reads, “9 Out of 10 Gamers Say that the
SuperEnhancer Sound Beats All Others!”
If Jurgenson wanted to demonstrate the new SuperDuperComputer, which media would
be best?
A. Yellow pages
B. Television
C. Magazine
D. Radio
E. Each of these media would be equal in this regard.
Answer:
Jackie works in transportation for a company that ships expensive, high quality fish all
across the United States. The perishable nature of her product, the value of freshness,
and the high prices she charges would lead you to recommend which transportation
mode?
A. Airfreight
B. Trucks
C. Railroads
D. Inland waterways
E. Piggyback truck
Answer:
Use this information to answer the following question that refer to the PSI case.
Pump Systems, Inc. (PSI) produces two major kinds of water pumps. The smaller
pumps range in price from $5-$30, and are used in drinking fountains and soft-drink
machines. Most of these pumps are bought by manufacturers of these machines and
built into their product. PSI also builds larger pumps used in swimming pools and
reservoirs. The prices of these items range from $250-$500. These are usually
purchased by contractors, who build the pools and reservoirs.
PSI sells nationally through sales reps located in the large industrial centers. These reps
handle the selling function for PSI in their geographic areas and provide market
information. They usually do the same thing for 10 to 20 similar manufacturers of
noncompeting products-and are paid on a commission basis.
There are no other producers of the smaller pumps in the United States-because PSI has
patent protection. As a result of this, management has decided to follow a policy of
pricing high-to maximize profits-while the patent lasts.
Several competitors are in the market for the larger pumps. Industry prices and profits
of these pumps have dropped in the past few years as a result of firms trying to increase
their market shares. The product design has remained fairly stable over the last few
years-and one firm dropped out as it saw that it would lose more money with its
“me-too” product. Industry sales are increasing-but at a very slow rate. The price of
these products is determined by adding a standard markup percentage to the variable
cost of the items-to cover fixed costs and profit. For instance, pump Z has variable costs
of $250 per unit, and a markup of 40 percent of this cost is added to the $250 to get its
selling price. Management has estimated that fixed costs applicable to this product are
$200,000 per year.
PSI publishes a product catalog which is revised annually. Also, it exhibits in most trade
shows. PSI follows a policy of charging the same price to all customers-so all will have
the same costs at their own plants. All purchases are shipped directly from PSI’s factory
to its customers-and title passes at PSI’s factory.
What kind of products are PSI’s small pumps to most customers?
A. Supplies
B. Component parts
C. Raw materials
D. Accessory equipment
E. Installations
Answer:
Marketing:
A. tries to accomplish a company’s objectives by anticipating customers’ needs and
trying to satisfy them.
B. begins with the production process.
C. involves persuading customers to buy your product.
D. is a social process involving all producers, intermediaries, and consumers.
E. tries to make the whole economic system fair and effective.
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.
What best describes the level of brand familiarity that customers in “the loyalists”
segment have with SDF?
A. Brand rejection
B. Nonrecognition
C. Brand recognition
D. Brand preference
E. Brand insistence
Answer:
Ad spending for direct mail in the U.S. in 2013 was about:
A. $8 billion
B. $24 billion
C. $48 billion
D. $61 billion
E. $95 billion
Answer:
_____ is communicating information between the seller and potential buyer or others in
the channel to influence attitudes and behavior.
A. Price
B. Product
C. Promotion
D. Place
E. Process
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.
For which market segment would widespread distribution NOT be as important?
A. Politicos
B. SDF who?
C. Loyalists
D. Deal prone
E. Regulars
Answer:
Regarding accessory equipment, which of the following is NOT true?
A. Multiple buying influence is less important in the purchase of an installation than
with accessory equipment.
B. There are more customers for accessory equipment than for installations.
C. Specialized services are more important in the purchase of installations than
accessories.
D. There are more sellers of accessory equipment than of installations.
E. All of these statements ARE true.
Answer:
Circle Z Tires is a retailer of car tires. Unless the store manager requests something
different, every month there is an automatic order of 10 XZ Performance Tires and 12
J-1 wheels from Box Tire Supply. This is an example of a
A. new-task buy.
B. modified rebuy.
C. straight rebuy.
D. modified buy.
E. simplified buy.
Answer:
Smartphones’ embedded GPS (Global Positioning System):
A. delivers ads to consumers based on the conversations and behaviors they exhibit in
social media.
B. indicates the phone’s geographic location on a minute-by-minute basis and generates
insights into consumer wants and needs.
C. shows whether a web surfer has been to a company’s website before and made a
purchase on the last visit.
D. acts as a tool to measure the effectiveness of an ad based on an estimate of how
many people receive the ad on their phones.
E. delivers buying information to business consumers based on ethnographic
positioning.
Answer:
All of the following are examples of publicity tools for interactive communication
between a company and consumers or business customers EXCEPT:
A. Facebook.
B. LinkedIn.
C. microblogs.
D. videos.
E. FourSquare.
Answer:
Marketing
A. applies to both profit and nonprofit organizations.
B. is another name for selling and advertising.
C. should pick up where the production process ends.
D. people should expect that the production department will determine what goods and
services are to be developed.
Answer:
Measuring macro consumer satisfaction:
A. is easy-just add up all the marketing mixes.
B. is difficult because consumer satisfaction depends on the level of consumer
aspiration.
C. must be done quantitatively.
D. uses MIS techniques.
E. None of these alternatives is correct.
Answer:
Regarding types of wholesalers, which of the following has the HIGHEST costs as a
percent of sales?
A. Manufacturers’ sales branches (with stock)
B. Merchant wholesalers
C. Brokers
D. Manufacturers’ agents
E. Agent wholesalers
Answer:
Quantity discounts are offered by sellers to:
A. reduce shipping or selling costs.
B. encourage customers to purchase larger quantities.
C. shift some of the storing function to buyers.
D. encourage buyers to make additional purchases.
E. All of these alternatives are correct.
Answer:
Many important changes are affecting marketing strategy planning. For example, the
introduction and growing use of smart phones is illustrative of changes in the area of:
A. Channels and logistics
B. Personal selling
C. Demographic patterns
D. Marketing research
E. Communication technologies
Answer:
When building quality into services, managers should:
A. not worry about training because people will learn by experience.
B. spend all of their time watching employees to make sure that they do things right
every time.
C. require employees to check with managers before attempting to correct any problem.
D. empower employees by giving them the authority to satisfy customers’ needs without
always checking with a supervisor.
E. None of these alternatives is correct.
Answer:
_____ refers to how customers think about proposed or present brands in a market.
A. Differentiating
B. CRM
C. Clustering
D. Positioning
E. Dimensioning
Answer:
A low stockturn rate
A. is extremely good for profits.
B. decreases inventory carrying cost.
C. ties up working capital.
D. is usually linked with very low markups.
E. is typical of fresh fruits and vegetables.
Answer:
Dimitri Kojak works for a producer of industrial elevators. He knows all the technical
details of the many different ways they are used by business customers. He makes
presentations to new prospects and eventually gets a share of their business. Dimitri is:
A. a member of the firm’s major accounts sales force.
B. a missionary salesperson.
C. a technical specialist.
D. a producer’s order getter.
E. a customer service rep.
Answer:
Identify the correct statement about the relationships between quantity, cost, and price
based on the cost-oriented pricing model.
A. The average total cost is usually obtained by adding the profit per unit to the quantity
demanded at selling price.
B. Cost-oriented selling price per unit is usually determined by adding the variable cost
per unit with the estimated quantity to be sold.
C. The estimated total number of units to be sold usually determines the average fixed
cost per unit.
D. The quantity demanded at selling price is the quantity used to compute the average
cost.
Answer:
Darrell Everwine read a review about a new computer program that appealed to him
very much. He decided to try to find the program. However, the new program was in
short supply-although other brands with similar features were available. Darrell had to
try seven shops before he finally found the program in stock. For Darrell, this program
achieved brand:
A. preference.
B. insistence.
C. rejection.
D. nonrecognition.
E. recognition.
Answer:
Early adopters
A. tend to rely on information sources that are not controlled by marketers.
B. tend to be opinion leaders.
C. are the first adoption curve group to buy a product.
D. are commonly called buzz agents.
E. all of these alternatives are correct.
Answer:
If a firm’s total fixed cost is $400,000 and its fixed cost contribution per unit is $10, its
break-even in units is:
A. 30,000.
B. 40,000
C. 10,000.
D. 20,000.
E. Cannot be determined with this information.
Answer:
_____ means separating products into grades and qualities as desired by different target
markets.
A. Bulk-breaking
B. Sorting
C. Accumulating
D. Assorting
E. Discrepancy of quality
Answer: