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Limited problem-solving probably would NOT be required in the purchase of:
A. running shoes.
B. an encyclopedia.
C. new suit.
D. coffee maker.
E. fast-food restaurant meal.
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.
A jewelry store advertises a one-carat diamond engagement ring as being discounted 50
percent off the original price of $10,000, for a sale price of $5,000. However, the ring
was never put on sale at the original price, and its actual cost to the retailer was only
$1,500. This jewelry store could be accused of using:
A. Price fixing.
B. Phony list prices.
C. Dumping.
D. Price discrimination.
E. Unfair trade practices.
"Unfair trade practice acts":
A. prohibit very high markups at the retail level.
B. allow manufacturers to set retail prices for branded products.
C. prohibit price fixing among retailers.
D. allow intermediaries to sell below cost.
E. protect certain limited-line retailers from "ruinous" price competition.
A car company sent three automobile magazines some technical information and
explanations about the features of its innovative new model. One of the magazines later
printed a story about the car. This is an example of:
A. personal selling.
B. advertising.
C. publicity.
D. sales promotion.
E. None of these is a good answer.
World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the U.S. Raul
Fernandez, the firm's marketing manager, is comparing his firm's distribution with two
major competitors.
1) WTB sells its products through four regional distributors who then sell to 22 sporting
goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its
website, WTB also sells directly to any customer who will purchase a minimum
quantity of 24 tennis balls. WTB cooperates with members of its channel, but maintains
some control through its economic power and leadership. It helps to direct the activities
of the whole channel and tries to avoid or resolve channel conflicts.
2) American Tennis Ball (ATB) is a competitor that sells through two distributorseach
with half the country. The distributors then sell through 6 sporting goods wholesalers,
and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods
chains and two general merchandise stores). ATB and its channel make little effort to
work together. However, because of a relatively low level of competition between the
distributors, the wholesalers, or the retail stores, each member of the channel gives the
product special attention.
3) National Tennis Ball (NTB) sells its products through only three tennis specialty
wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that
handle its products. NTB's balls are only available at certain tennis clubs and NTB
limits coverage to only one club in a particular geographic area.
Which of the following describes WTB's channel arrangements?
A. Intensive distribution
B. Corporate channel system
C. Exclusive distribution
D. Traditional channel system
E. Reverse channels
____________ advertising tries to develop primary demand for a product category
rather than demand for a specific brand.
A. Reminder
B. Institutional
C. Pioneering
D. Competitive
E. Comparative
Given the following data, compute the BEP in DOLLARS:
Selling price = $2.00
Variable cost = $1.00
Fixed cost = $150,000
A. $300,000
B. $400,000
C. $100,000
D. $200,000
E. $50,000
Macro-marketing
A. emphasizes building a long-term relationship that benefits both the firm and the
customer.
B. considers the marketing activities of corporations rather than individuals.
C. emphasizes how the whole marketing system works.
D. systems are only relevant to advanced economies.
E. addresses discrepancies that emerge from homogeneous consumer demand.
The ____________ method of payment uses a percentage of dollar sales in calculating
compensation.
A. Bonus
B. Commission
C. Straight salary
D. Combination
E. Employee discount
Viewing marketing as a social process focuses on
A. marketing by nonprofit organizations.
B. command economies.
C. macro-marketing.
D. micro-marketing.
E. None of these is correct.
The economic environment:
A. Has no relationship to the technological environment.
B. Is not affected by the way all of the parts of the macro-marketing system interact.
C. Is the same from country to country.
D. Can change very rapidly.
E. Never requires marketing managers to make immediate changes in strategy.
Regarding marketing cost analysis, which of the following statements is TRUE?
A. Natural accounts are set up to indicate the purpose for which the expenditures were
made.
B. The contribution-margin approach focuses attention on all costs equally.
C. The first step is to reclassify all costs in the natural accounts into functional
accounts.
D. The total of costs in the natural accounts will often differ from the total of those in
the functional accounts.
E. All of these are true.
Which of the following statements by a marketing manager refers to operational
decisions, rather than strategy decisions?
A. "Our target customers view most existing luxury sedans as dull, and they want
performance as well as luxury."
B. "Newspaper ads will be more cost effective than 30 second radio ads--given the price
increase for radio this month."
C. "We hope to earn a 15 percent return on investment with our plan."
D. All of these statements refer to operational decisions.
If a producer selects an output level and price where marginal revenue is equal to
marginal cost:
A. marginal profit will be at its maximum.
B. total revenue will be at a maximum.
C. profits will continue to grow beyond this break-even point.
D. profit will be maximized.
E. any increase in price will cause marginal revenue to go negative.
Which of the following promotional objectives is most likely being accomplished when
a window company compares its windows to those of a competitor to show
homebuilders why its products are superior?
A. Planning
B. Rebutting
C. Persuading
D. Reminding
E. Informing
In the _____ approach, all costs are allocated to products, customers, or other
categories.
A. contribution margin
B. full-cost
C. marketing overheads
D. gross margin
E. overhead
Heritage Brick's marketing manager is setting her pricing policies to "increase market
share to 8%." Her pricing objective seems to be:
A. status quo oriented.
B. sales oriented.
C. profit oriented.
D. target return oriented.
E. None of these is a good answer.
The "adoption process" suggests that:
A. confirmation must come before the decision to adopt or reject.
B. evaluation usually comes before trial and decision.
C. the decision to reject may follow confirmation.
D. confirmation comes from a satisfactory evaluation.
E. decision usually follows trial and confirmation.
Total cost:
A. increases directly with increases in total variable cost.
B. is zero at zero output.
C. is fixed in total no matter how much is produced.
D. increases directly with increases in total fixed cost.
E. None of these alternatives is correct.
Which of the following is NOT a current trend that is affecting marketing strategy
planning?
A. more attention to targeted media.
B. lower stockturns on higher margin items.
C. slower real income growth in U.S.
D. growth of mass-merchandising.
E. growth of larger, more powerful retail chains.
Underlying any economic environment is technology which affects:
A. how the economy's resources are converted to output.
B. how quickly technological developments lead to new consumer protection laws.
C. how competitors react to each other.
D. how aggressive competitors are in planning new marketing strategies.
E. how fast consumer attitudes change.
The quarterly operating statement for a firm gives the following information:
Number of pieces manufactured: 100
Number of pieces sold: 100
Total cost of goods sold: $800
Average cost of single piece: $5
Net sales: $1,000
It can be inferred that the firm's gross margin is _____.
A. $92
B. $2
C. $1800
D. $200
E. $1818
_____ is the feedback process that helps the marketing manager learn how ongoing
plans are working and how to plan for the future.
A. Design
B. Planning
C. Implementation
D. Control
E. Benchmarking
Which of the following observations concerning price fixing is true?
A. It is highly uncommon and relatively difficult to achieve.
B. It is permitted in the United States, under certain circumstances.
C. It is considered "conspiracy" under the Sherman Act.
D. In the U.S, individual managers are not held responsible for price fixing.
E. Price fixing laws across the globe are similar in nature.
Trust is the confidence a person has in the promises or actions of
A. another person.
B. a brand.
C. a company.
D. a recommender.
E. All of these choices are correct.
Which of the following is an "economic need"?
A. Desire for self-satisfaction and convenience.
B. Desire for efficiency in the use of the consumer's money.
C. Desire for efficiency in the use of the consumer's time and money.
D. Desire for prestige and paying a high price for the best quality.
E. Desire for status and paying a high price for the best quality.
Chu's Coating Services, a painting company, designs a set of four paint colors that will
only be used by custom motorcycle maker Walker County Choppers. This decision is an
example of
A. competitive bidding.
B. just-in-time delivery.
C. insourcing.
D. operational linkages.
E. a relationship-specific adaptation.
When some customers see all competitors' offerings as basically the same and are
willing to spend much time and effort to buy the item at the lowest price, the item is:
A. an analysis product.
B. a specialty product.
C. a staple product.
D. a heterogeneous shopping product.
E. a homogeneous shopping product.
Setting objectives and strategies for the whole company is a job performed by:
A. marketing managers.
B. the company's accountants.
C. top executives.
D. shareholders.
E. the marketing department.
