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Although the total industry demand for business products may be inelastic, the demand
facing individual sellers may be extremely elastic.
Answer:
The traditional view of promotion has focused on communication initiated by the seller.
Answer:
Reverse channels are used when multichannel distribution fails.
Answer:
All marketing research projects are worthwhile because they gather new
informationeven if the research doesn't have action implications.
Answer:
A manager shouldn't be criticized for making an unethical marketing decision unless the
ethical breach was intentional.
Answer:
In customer-initiated interactive communication, noise is no longer a factor.
Answer:
Product, Place, Promotion and Price are the four major variables (decision areas) in a
firm's marketing mix.
Answer:
The mass marketing approach is more production-oriented than marketing-oriented.
Answer:
To develop lasting relationships with customers, marketing-oriented firms need to focus
on customer satisfaction both before and after each sale.
Answer:
Qualitative research seeks clear yes or no answers.
Answer:
Customers evaluate both the message and the source of the message only in terms of
credibility.
Answer:
Brokers usually have a long-term relationship with the buyers and sellers.
Answer:
Just-in-time delivery reliably helps to get products and store them long before the
customer needs them.
Answer:
Using sales reps who are paid a straight commission is similar to using manufacturers'
reps.
Answer:
Less than 15 percent of retail stores in the U.S. have annual average sales of $5 million
or more.
Answer:
A data warehouse is filled with file cabinets and binders where past market research is
stored.
Answer:
Incentives that just focus on short-term sales objectives may not motivate sales reps to
develop long-term, need-satisfying relationships with their customers.
Answer:
2/10, net 30 means the buyer can take a 2 percent discount off the face value of the
invoice if the invoice is paid within 10 days.
Answer:
Transport costs per pound for less-than-full carloads are less than for full loads.
Answer:
The major disadvantage of price lining is that it is complicated for both clerks and
customers.
Answer:
Value pricing involves developing a "bare bones" marketing mix and a cheap price.
Answer:
Technological advances like the World Wide Web and the Internet are leading to big
advances in business.
Answer:
Marketing activities should begin with potential customer needs, not with the
production process.
Answer:
A successful marketing program benefits the firm by increasing customer equity.
Answer:
Even if a firm's average variable cost remains constant per unit, its average cost will
increase as output increases.
Answer:
Differentiation emphasizes similarity rather than uniqueness.
Answer:
A major accounts sales force is used when a company wants to be certain that its most
important customers get a special selling effort.
Answer:
When segmenting markets, one should look at geographic location and demographic
characteristics as well as customers' desire and willingness to compare and shop, but
behavioral needs aren't important for this purpose.
Answer:
The product life cycle concept applies to retailers as well as products.
Answer:
Flexible pricing is most common in the channels, in direct sales of business products,
and at retail for expensive shopping products.
Answer:
A description of what a firm wants to buy is called its purchasing specifications,
whether that description is written or electronic.
Answer:
Mass selling:
A. makes widespread distribution possibleby reaching many potential customers at the
same time.
B. alternatives do not vary much in cost when target market preferences are considered.
C. alternatives do not vary much from one country to another.
D. alternatives do not vary much in results when target market preferences are
considered.
E. None of these alternatives is true.
Answer:
Which of the following most likely reflects the experience of a general store in the
post-Civil War south?
A. Its business declined due to decreased product demand.
B. Its business stayed level due to consumer loyalty.
C. Its business increased because it added locations.
D. Its business declined due to lack of variety of goods.
E. Its business increased due to reduced production costs.
Answer:
A telecommunications company offers its salespeople a traditional straight commission
compensation plan based on a percentage of dollar sales. The company will incur the
highest total personal selling expenses when:
A. total customer service costs are minimized.
B. total marketing costs are at their lowest.
C. total sales revenue is at its highest.
D. total units sold are at their highest.
E. total units returned are at their lowest.
Answer:
Which of the following statements about ISO 9000 is NOT TRUE?
A. ISO 9000 is a way for a supplier to document its quality procedures according to
internationally recognized standards.
B. ISO 9000 reassures a customer that the supplier has effective quality checks in place
after it conducts a personal quality audit.
C. Some customers will not buy from a supplier who does not have ISO 9000
certification.
D. One requirement for ISO 9000 certification is that a company must show outside
auditors who is responsible for quality every step of the way.
E. ISO 9000 helps organizational customers who are considering a new supplier.
Answer:
Which of the following is a disadvantage of flexible pricing?
A. It allows a salesperson to adjust the price in response to competition.
B. It leaves opportunities for sales by not adjusting to customers.
C. It allows a salesperson to adjust the price depending on his customer.
D. It can cause discontent among customers who realize they have paid a higher price
than others.
E. It results in broadcasting a price that the competition can undercut.
Answer:
Which of the following is most likely to spend 2.5 percent on advertising as a
percentage of sales?
A. A producer of soft drinks
B. A producer of motor vehicles
C. A retail grocery store
D. A producer of soap and detergent
E. A retail jewelry store
Answer:
When conducting a competitor analysis, it is important for managers to take the
viewpoint of:
A. competitors.
B. the CEO.
C. target customers.
D. supply chain partners.
E. the industry leader.
Answer:
If you go into a restaurant in Vienna, Austria, and ask for a Diet Coke, the waiter may
have no idea what you are ordering. This is an example of which part of the external
market environment?
A. Political
B. Cultural and social
C. Legal
D. Economic
E. Competitive
Answer:
The term "economies of scale" means that:
A. The largest producers are always the most efficient.
B. The cost of a product goes down as a company produces larger numbers of it.
C. The more one produces, the greater the profit.
D. It is more efficient for an economy to have a large number of transactions.
E. None of these is correct.
Answer:
Different firms in the same line of business are likely to use the same markup percent:
A. because they all want to have the same selling price.
B. because this is a government requirement.
C. because they are likely to have similar operating expenses.
D. because this is what is acceptable to manufacturers.
E. only if they are in pure competition.
Answer:
Procter and Gamble buys unprocessed logs which are handled as little as needed to
move them to its plant. Eventually, they become part of P and G's disposable diapers
and are considered an expense item on P and G's income statement. For P and G, logs
are:
A. farm products.
B. supplies.
C. component parts.
D. component materials.
E. raw materials.
Answer:
A _____ policy means offering the same price to all customers who purchase products
under essentially the same conditions and in the same quantities.
A. one-price
B. flexible price
C. skimming price
D. differentiated
E. penetration price
Answer:
Segmenters, in contrast to combiners:
A. try to aim at homogeneous submarkets of larger product-markets.
B. see one aggregate demand curve for a generic market.
C. are accepting the likelihood of lower sales.
D. assume that everyone in a broad product-market has the same needs.
E. develop general-purpose marketing mixes that appeal to several submarkets.
Answer:
Gross national income (GNI):
A. is affected by economic conditions and the productivity of workers in the country.
B. usually rises when there are bad economic conditions in an economy.
C. is the amount of new capital invested in business in a year.
D. is the total cost of producing all goods and services in a year.
E. is the total market value of goods and services consumed in an economy in a year.
Answer:
Which of the following is NOT a concern in selecting the advertising media to use?
A. The advertising budget.
B. The nature of the media.
C. The target market.
D. The advertising objective.
E. All of these are relevant concerns.
Answer:
Which statement is true about products in the sales decline stage of the product life
cycle?
A. Brand managers should phase-out this product as quickly as possible.
B. A declining product may still be profitable for some time and it might be more
appropriate to phase-out this product gradually.
C. Customers will always abandon the declining product immediately if an alternative
is available.
D. Phasing-out a product at this time is fairly easy and this strategy will cut future
losses.
E. None of these statements about the sales decline stage is true.
Answer:
The sales analysis of a product revealed that profits were highest when it was initially
introduced into the market with a high selling price. However, the price was gradually
reduced as it started facing competition as substitutes entered the market. This is an
example of a(n) _____.
A. introductory price dealing
B. temporary price cut policy
C. skimming price policy
D. penetration price policy
E. one price policy
Answer:
A computer manufacturer runs training programs for its "cooperating" retailers'
salespeople, as well as providing newspaper advertising layouts, point-of-purchase
materials, and sales manuals. This is an example of:
A. an administered channel system.
B. a contractual channel system.
C. a traditional channel system.
D. a vertically integrated corporate channel system.
E. a franchising system.
Answer:
For an order-getter, which of the following steps in the personal selling process usually
occurs first?
A. Follow up after purchase
B. Preplan sales call
C. Make sales presentation
D. Close sale
E. Select target customer
Answer:
Sears reduces prices on gas grills between November and February, prior to spring and
summer. This price reduction is a:
A. Stocking allowance.
B. Seasonal discount.
C. Noncumulative quantity discount.
D. Cumulative quantity discount.
E. Cash discount.
Answer:
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores also and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
If Yummy relies on a sales contest to stimulate sales of Cherry Walrus, this would be an
example of:
A. advertising.
B. personal selling.
C. sales training.
D. sales promotion.
E. publicity.
Answer:
A marketing manager planning to launch a successful new product should begin by:
A. obtaining financing for the venture.
B. designing products that interest him or her.
C. identifying a product or service that customers need.
D. choosing a business partner.
E. establishing a legal corporation.
Answer:
CeCe Springer works for a large cosmetics company. She calls on retailers to tell them
about her firm's new products, to train the retailers' salespeople, and to set up promotion
displays. Her boss actually handles the order-related activities. CeCe is:
A. an order getter.
B. a manufacturers' agent.
C. a technical specialist.
D. an order taker.
E. a missionary sales rep.
Answer:
Regarding the training of salespeople:
A. A good salesperson does not need training.
B. Experienced salespeople do not need training.
C. Most good salespeople are "born salespeople" and possess the necessary skills
without training.
D. Time spent on classroom training of new salespeople is often wasted because
experience in dealing directly with customers is the best possible training.
E. None of these alternatives are correct.
Answer:
A rack jobber is an example of
A. limited-function merchant wholesaler.
B. service merchant wholesaler.
C. agent wholesaler.
D. producer.
E. personal shopper.
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:
A ______________ market is a market with broadly similar needs and sellers offering
variousand often diverseways of satisfying those needs.
A. homogeneous
B. product
C. relevant
D. generic
E. target
Answer:
The various Promotion methods:
A. are all intended to lead to customer decisions favorable to the firm.
B. are all different forms of communication.
C. have a difficult tasksince it is not easy to affect buying behavior.
D. All of these alternatives are correct.
Answer:
Which of the following would be likely to help you develop a "breakthrough
opportunity?"
A. A two-month advantage over competitors in introducing a new product.
B. An idea for a new website animation that will attract consumer attention.
C. Accurate marketing research information about how much of a planned product the
target market is likely to buy.
D. None of these would help you develop a breakthrough opportunity.
Answer:
Selling products manufactured in the United States to foreign customersoften without
any product changesis called:
A. joint ventures.
B. licensing.
C. importing.
D. contract manufacturing.
E. exporting.
Answer:
