A retailer engaged in direct marketing would probably select television home shopping
over online retailing to sell a new kitchen device because of:
a. lower costs of selling.
b. easier financial transactions.
c. a superior ability to demonstrate the product.
d. a superior ability to offer the product at a lower price.
e. a decreased cycle time.
If an organization is large and has a large promotional budget, it should utilize all four
promotional methods.
a. True
b. False
Craftsman tools sold and branded by Sears is an example of a brand.
a. manufacturer
b. generic
c. wholesaler
d. private distributor
e. regional
Brands that are promoted through comparative advertising are most likely to be _____.
a. market leaders
b. brands that are attempting to compete with market leaders
c. primarily services rather than tangible goods
d. attempting to compete on a non-price basis
e. competing in a less competitive market
During which stage of the consumer buying decision process does a consumer finally
decide the seller from whom he will buy the product?
a. Internal search
b. External search
c. Post purchase evaluation
d. Purchase
e. Problem recognition
When charitable organizations such as the American Cancer Society, Second Harvest
Foodbank, and the Red
Cross make purchases for goods and services to use in their daily operations, they
would be considered to be_____ buyers.
a. corporate
b. government
c. institutional
d. producer
e. nonprofit
Saks Fifth Avenue wants to learn about its consumers’ attitudes toward online
purchases. There are numerous studies that are available about consumers and online
buying, but Saks believes its customers might be different from the usual online
consumer profile, so they decide to conduct their own study. If Saks were to use the
available data about consumer attitudes, it would be using data.
a. descriptive
b. experimental
c. secondary
d. primary
e. conclusive
When a manufacturer advertises a product to consumers, resellers should view this
promotion as a form of strong manufacturer support.
a. True
b. False
Which of the following statements does not apply to convenience goods?
a. Consumers are brand loyal to convenience products and are not likely to substitute
other brands.
b. Convenience products require minimal shopping effort.
c. Marketing of convenience products requires intensive exposure of these goods in as
many stores as possible.
d. Consumers tend to feel that the most desirable retail facility for convenience products
is the closest one.
e. Colas, gasoline, and bread are good examples of convenience goods.
The FTC can issue a cease-and-desist order, which is an injunction to:
a. report to the FTC immediately.
b. stop doing whatever caused the complaint.
c. appear before the courts.
d. pay for damages caused by negligence of the firm.
e. close down the firm until further notice.
Showing a product’s price along with its previous price, the price of a competing brand,
or the price at another retail outlet is called:
a. competition-based pricing.
b. reference pricing.
c. comparison discounting.
d. captive pricing.
e. psychological pricing.
When a retailer advertises a product and makes it available for purchase through
telephone or mail orders, the retailer is using_________-.
a. direct selling
b. television home shopping
c. telemarketing
d. automatic vending
e. direct-response marketing
A major disadvantage of personal selling is that it:
a. is not remembered as well by consumers as advertising messages are.
b. cannot easily adjust the message to satisfy a customer’s information needs.
c. is the most expensive element in the promotional mix.
d. does not provide immediate feedback.
e. is not compatible with other promotional activities.
What level of commitment in international marketing may be most attractive when the
political and economic stability of a foreign country is questionable?
a. Joint ventures
b. Direct ownership
c. Exporting
d. Limited exporting
e. Licensing
Scenario 17.1
Use the following to answer the questions
Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to
various motorcycle retail stores around the country. Jafrum does not manufacture these
items, but sells them to other retailers and also sells its merchandise through its website.
Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining
new customers, increasing sales to current customers, and visiting the retail stores
throughout the country. Recently, he has been given the sales objective from Jafrum’s
management to increase sales dollars by 15% in the coming year by adding new
customers. Sean’s current compensation is based on a $1,000 per month draw, plus 5%
of all sales over $100,000. His salary last year totaled $42,000. Management has given
Sean the choice of going to a compensation plan where he will earn 15% of all sales,
but no draw. Currently, Sean’s compensation is based on the plan, however he is
considering changing to the plan
a. straight salary; salary plus commission
b. straight commission; straight salary
c. salary plus commission; straight commission
d. salary plus bonus; straight bonus
e. straight bonus; straight commission
Marketing consists primarily of selling and advertising.
a. True
b. False
What is derived demand?
What is co-branding? Explain what makes co-branding effective.
What major changes in a marketing strategy may be required as a product moves into
the maturity stage of the product life cycle?
Discuss four publicity-based public relations tools.
How do individual factors affect the business buying decision process?
List the environmental factors that affect the business buying decision process.
Why is public relations an important form of communication about a company? Discuss
negative public relations, and give an example.
Given a new brand of barbecue sauce for which to develop a marketing strategy,
describe the process of conducting environmental scanning and analysis for this brand.
What are the major functions of a label?