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In which of the external environments changes usually occur most slowly?
A. Cultural and social environment
B. Political and legal environments
C. Resources and objectives of the firm
D. Competitive environment
E. Economic and technological environments
Concerning consumer and business markets:
A. promotion to consumer markets usually relies more heavily on the use of personal
selling.
B. it is often easier to define customer needs in business markets.
C. a marketing mix directed at an organizational customer is usually less precisely
adjusted to the needs of the specific customer.
D. None of these alternatives is correct.
Which of the following is likely to have the lowest total personal selling expenses?
A. A company with salespeople on a combination plan and low sales volume
B. A company with salespeople on straight salary and low sales volume
C. A company with straight commission salespeople and high sales volume
D. A company with salespeople on straight salary and high sales volume
E. A company with straight commission salespeople and low sales volume
Which of the following applies to "value in use pricing?"
A. How much profit will the firm make?
B. How much will the customer save?
C. What does a competitor offer?
D. How much can the customer afford?
When a supplier's computer automatically processes an online order from a customer,
schedules production activities for the order, and then sets up delivery of the finished
product to the customer, what approach is being used?
A. Piggyback
B. EDI
C. Containerization
D. JIT
E. Contractual
Which of the following statements about rebates is True?
A. Rebates are refunds paid to consumers after a purchase.
B. Rebates ensure that the final consumer gets a producer's price reduction.
C. Many consumers purchase a product because a rebate is offered but then never
request the refund.
D. Many consumers think that some sellers make it an unnecessary hassle to claim a
rebate.
E. All of these statements about rebates are True.
Limited problem solving probably would be required by "empty-nesters" in the
purchase of:
A. sports clothes.
B. restaurant's services.
C. plumbing repair service.
D. a replacement garbage disposer.
E. All of these are correct.
In developing marketing mixes for consumers in international markets, marketing
managers should:
A. generalize from one culture to another.
B. use their intuition.
C. know about the specific social and intrapersonal variables.
D. follow their beliefs.
E. All of these are correct.
The specific sales or profit objective a salesperson is expected to achieve is known as a:
A. Sales quota.
B. Sales range.
C. Sales standard.
D. Sales return.
E. Sales maximum.
When a firm has multiple market opportunities from which to choose, marketers can
use the following tool to identify the best ones:
A. Competitor analysis.
B. Competitor matrix.
C. Focus group.
D. S.W.O.T. analysis.
E. Strategic planning grid.
The __________ involves developing a good understanding of the individual
customer's needs before trying to close the sale.
A. Selling formula approach
B. Consultative selling approach
C. Prepared sales presentation
D. Fixed sales presentation
E. Differentiated value approach
Heterogeneous shopping products:
A. need adequate representation in major shopping areas near similar products.
B. need widespread distribution near probable points of sale.
C. need enough exposure to aid price comparison.
D. need widespread distribution at low cost.
E. need widespread distribution but with assurance of preferred display or counter
position.
Which of the following would NOT be paid for using working capital?
A. Employee salaries
B. What it costs to store inventory
C. What a firm owes suppliers
D. Marketing research costs
E. The cost of new production equipment
________________ ________________ utilizes qualitative and quantitative analysis
procedures to help marketing managers make more informed decisions.
A. Marketing planning
B. Marketing processing
C. Marketing structure
D. Marketing research
E. Marketing strategy
Which of the following statements about convenience stores is False?
A. Many convenience stores also sell gasoline.
B. Prices on individual items are usually lower than in a supermarket.
C. They have begun to compete with fast-food restaurants.
D. They have a more limited assortment than do supermarkets.
E. None of these statements about convenience stores is False.
Concerning marketing ethics:
A. Individuals develop moral standards based on their own values.
B. Opinions about what is right or wrong vary from one society to another.
C. The prevailing practice of most businesspeople is to be fair and honest.
D. Marketing ethics has its critics.
E. All of these are correct.
Which of the following adopter groups is most important to 'sell"given the importance
of opinion leaders?
A. Late majority
B. Early majority
C. Laggards
D. Innovators
E. Early adopters
Which of the following is NOT one of the basic promotion objectives discussed in the
text?
A. to inform
B. to remind
C. to manipulate
D. to persuade
E. All of these are promotion objectives.
Limited problem solving is used
A. when consumers put much effort into deciding how to satisfy a need.
B. for purchases that have little importance or relevance for the customer.
C. by consumers when some effort is required in deciding the best way to satisfy a
need.
D. when consumers regularly select a particular way of satisfying a need when it
occurs.
E. mostly for impulse purchases.
When final consumers are willing to spend much time and effort comparing quality and
stylewith brand and price being less importantthe product is:
A. an inspection product.
B. a heterogeneous shopping product.
C. a homogeneous shopping product.
D. a specialty product.
E. None of these alternatives is correct.
Sam's Club purchases a 24-pack of bottled water from a wholesaler for $3.85 and wants
a markup of 25 percent. What is the price that Sam's Club charges its customers?
A. $4.25
B. $4.75
C. $4.95
D. $5.13
E. $5.75
____ is one of the psychological variables that affects a person's buying behavior.
A. Perception
B. Family
C. Social class
D. Reference groups
E. Convenience
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. In regard to freight charges for its equipment, NPE's invoice reads, "Seller
pays the cost of loading equipment onto a common carrier. At the point of loading, title
to such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
The 3% price reduction Bella Computers gives its retailers is an example of:
A. push money.
B. value pricing.
C. an advertising allowance.
D. everyday low pricing.
E. a cash discount.
According to the text, one of the main reasons that IKEA has been able to grow rapidly
without greater capital investments is that
A. it operates in tax havens.
B. most of its production is outsourced to other firms.
C. it is a privately held company.
D. it has relied more on local production.
E. it sells at the lowest cost price in the market.
The 80/20 rule suggests that
A. 20 percent of marketing effort is wasted.
B. 80 percent of marketing effort is well implemented, but the remaining 20 percent is
out of control.
C. 80 percent of the business comes from 20 percent of the customers.
D. it will take 80 percent more effort to get 20 percent more business.
E. None of these is true.
A company has three products (X, Y, and Z) that it sells, packs, and ships to its
customers. Because the products have different sizes they also have different packing
and shipping costs so we will use a new measurea packing/shipping unit. Because
Product Y is the smallest of the three products, we will assign it a value of 1
packing/shipping unit. Product X is twice as big as Product Y and Product Z is four
times as big as Product Y. On a monthly basis, this company sells an average of 1,500
units of Product X, 800 units of Product Y, and 60 units of Product Z. If the company
spends on average of $3,720 each month on total packing/shipping costs, what amount
should it allocate to Product X per month (to the nearest dollar amount)?
A. $736
B. $1,380
C. $1,836
D. $2,500
E. $2,760
Regarding sales force compensation methods:
A. combination plans provide some security and some incentive.
B. straight commission avoids the need to consider a sales quota.
C. straight salary provides the most incentive.
D. sales quotas play no role in any of the methods.
E. None of these alternatives is correct.
Channel specialists provide value to producers in the following circumstance:
A. when producers are located far from their customers and may not know how best to
reach them.
B. when the assortment and quantity of products customers want matches the
assortment and quantity of products companies produce.
C. when customers are well informed about their product choices.
D. when producers and customers exist in the same location.
E. when customers prefer online purchasing.
Which of the following best illustrates "discrepancies of quantity"?
A. Michelin makes tires, but most consumers also want a large selection of car-care
services.
B. Some stores sell large quantities of Michelin tires, but only small quantities of tires
made by other companies.
C. There are over 310 million consumers in the U.S. but only a small portion buy tires
in any given year.
D. Four firms make over 90 percent of all the tires sold in the United States.
E. Michelin made millions of tires last yearbut most customers bought only one set.
Firms that specialize in providing marketing functions other than buying or selling are
known as:
A. suppliers.
B. intermediaries.
C. consultants.
D. agents.
E. collaborators.
If Frito-Lay (which has products in almost all the submarkets for snack foods) were to
try to increase its share of one of these markets, it would be pursuing a
______________ opportunity.
A. diversification
B. market penetration
C. product development
D. mass marketing
E. market development
The "communication process" shows that:
A. sources and receivers should have a common frame of reference.
B. the receiver is usually not influenced by the nature of the message channel.
C. sources decode messages and receivers encode them.
D. all media appear to be equally effective as message channels.
E. None of these alternatives is correct.
_____ means giving employees the authority to correct a problem without first
checking with management.
A. Responsibility adjustment
B. Empowerment
C. Training
D. Induction
E. Benchmarking
A flexible-price policy means offering
A. different products and quantities to different customers at different prices.
B. the same product and quantities to different customers at same prices.
C. different products and quantities to different customers at same prices.
D. the same product and quantities to different customers at different prices.
E. the same product and different quantities to different customers at same prices.
