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The product line of a limited line retailer would best be described as:
A. including a wide assortment.
B. reflecting a narrow price range.
C. carrying inventory that comes from European sources.
D. popular products at low prices to get fast turnover.
E. a small range of one specific type of product.
For new-task buying, a good salesperson will try to contact the potential customer's:
A. deciders.
B. gatekeepers.
C. influencers.
D. buyers (purchasing managers).
E. All of these would be contacted for new-task buying.
Which of the following would probably NOT be in a proposed marketing plan?
A. A list of what company resources (costs) would be required.
B. A statement of how frequently the design of the website will be changed.
C. Expected sales and profit results.
D. A description of the target market and marketing mix.
E. All of these would normally be part of a marketing plan.
Provided that a product satisfies customer needs, advertising can:
A. manipulate customers into buying a product.
B. raise the cost of producing a product.
C. assure a product does not fail.
D. prevent economies of scale in manufacturing.
E. increase demand for the product.
Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby
and craft supplies. She bought the store after working there for 7 years. Carol has just
been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber
of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goodsmostly
men's and women's clothingwith the upscale Walden's brand name. Walden's primarily
relies on its own stores where knowledgeable salespeople offer great service. Walden
products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks
display racks for paperback books and magazines. Most retailers welcome the service
Audrey provides, in part because she does her own research to determine which
paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of
merchandise. The company used to concentrate its product mix on small appliancesbut
now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster
turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed
a contract with Games Unlimited and follows strict rules covering her store's operations
and the Games Unlimited marketing strategy. She pays that company a fee for
promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty
products to retailers and salons throughout the greater Centerville area. It owns the
goods it sells to these retailer customers, and it provides all the wholesaling functions
they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored
by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer
name are linked by contracts that include basic operating procedures, storefront designs,
and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding
in the Centerville area. It earns a commission from each manufacturer on the products it
sells for that manufacturer, but it does not take ownership of the equipment it sells nor
does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years
ago. After some success, the company moved into a nicer storefront, raised prices, and
now operates in the middle of the market.
Which of these businesses has followed the wheel of retailing theory?
A. Games Unlimited
B. Katrina's Salon
C. Walden's Leather
D. Valu Grocer
Which of the following statements about social class is false?
A. The various classes tend to have different attitudes.
B. The various classes tend to save money in different ways.
C. Income by itself can be a pretty good measure of social class.
D. The various classes tend to have different beliefs.
E. The various classes tend to borrow money in different ways.
Which of the following is an example of a service merchant wholesaler?
A. Drop-shipper
B. Specialty wholesaler
C. Catalog wholesaler
D. Auction company
E. Personal shopper
Average fixed costs:
A. increase as the quantity produced increases.
B. decline for a while as output increases and then begin to rise again.
C. decrease steadily as output increases.
D. are less than average variable costs at all output levels.
E. None of these alternatives is correct.
Which of the following is the LEAST appropriate advertising objective?
A. To increase sales by 20 percent this year.
B. To improve consumer goodwill and help sell the product.
C. To increase target customers' brand awareness by 50 percent this year.
D. To increase a brand's market share by 10 percent.
E. To obtain 20 new accounts in the Oakland Bay area.
A product-market definition should include:
A. product type.
B. customer types.
C. customer needs.
D. geographic area.
E. All of these alternatives are correct.
Boatwright College gives manufacturers of clothing and gift items permission to place
the college's name and emblem on a wide variety of merchandise. In return, Boatwright
is paid a fee for granting this permission. In this case, the Boatwright name and logo is
a(n):
A. Manufacturer brand.
B. Individual brand.
C. Dealer brand.
D. Licensed brand.
E. Private brand.
When a company segments its business customers on the basis of whether or not they
require contract bids over the Internet, what segmenting dimension is this company
using?
A. Kind of relationship.
B. Demographics.
C. Type of customer.
D. How customer will use product.
E. Purchasing methods.
Regarding product life cycles, which is true?
A. Industry sales and profits tend to reach their maximum during the market maturity
stage.
B. Product life cycles describe industry sales and profits within some product-market.
C. Product life cycles are generally getting shorter and cannot be extended.
D. Every new brand must pass through all four stages of the product life cycle.
E. All of these alternatives are TRUE.
All of the following are payment methods for personal selling except
A. straight salary.
B. combination plan.
C. straight commission.
D. profit-sharing.
E. tax deductions.
_________ refers to the change in total revenue that results from the sale of one more
unit of a product.
A. Total revenue
B. Marginal revenue
C. Average revenue
D. Diminishing revenue
E. Economies of scale
Compared to a product-market, a generic market:
A. Is more narrowly defined.
B. Has sellers offering a more diverse set of products.
C. Can never help marketers identify opportunities.
D. None of these is a good answer.
The move of the "Baby Boomers" into the 45-64 age group:
A. increased the average age of the population.
B. created new opportunities in financial services.
C. contributed to increased interest in health and fitness products.
D. All of these are correct.
A firm's product-market screening criteria for evaluating existing plans and possible
new opportunities should consider:
A. the objectives of top management.
B. trends in the market environment.
C. the firm's strengths.
D. the firm's weaknesses.
E. All of these should be considered.
"Qualifying dimensions," in contrast to "determining dimensions,"
A. are the only kind of dimensions useful for marketing strategy planning.
B. indicate whether a person might be a potential customer but do not show which
product or brand that person might buy.
C. are the customer-related dimensions in a product-market.
D. affect the product or brand a person is likely to purchase.
E. None of these alternatives is correct.
The first step of the marketing research process-defining the problem-is the most
important because:
A. it comes first.
B. it involves qualitative research.
C. failure to correctly define the problem will cause all subsequent steps to be wasted
effort.
D. many problems go away once they are clearly defined.
E. it's easy to confuse problems with symptoms at this stage.
In the U.S. market-directed system, it is up to each _____ to decide how effectively
individual firms satisfy the consumer's needs.
A. market research consultant
B. customer
C. manufacturer
D. advertising agency
E. salesperson
Games would most likely be used as a publicity mechanism for achieving which of the
following promotional objectives?
A. Getting attention and holding interest
B. Managing ongoing customer relationships
C. Arousing desire and obtaining action
D. Minimizing customer service complaints
E. Developing a desired positioning
A target market and a related marketing mix make up a:
A. Marketing plan.
B. Marketing strategy.
C. Marketing program.
D. Marketing analysis.
E. Marketing proposal.
In promotion to business customers, personal selling is often the dominant promotion
method because:
A. there are fewer business customers than final consumers.
B. the sales message may need to be adjusted to the needs of different people in the
firm.
C. purchases are typically large and thus justify the effort.
D. buyers are more likely to have technical questions.
E. All of these are good reasons.
Regarding railroads,
A. full carload rates are lower than less-than-carload rates.
B. rail shipments usually move much faster than truck shipments.
C. they transport the same products in less-than-carload lots faster than full carload
shipments.
D. they handle products only if they are shipped in full carload lots.
E. None of these alternatives is true.
A Wendy's fast-food restaurant needs ______________ to serve its customers.
A. merchandisers
B. order takers
C. order getters
D. hucksters
E. supporting salespeople
Regarding adopter groups, which of the following statements is TRUE?
A. Innovators rely on the mass media and salespeople.
B. The early majority usually aren't opinion leaders.
C. Laggards rely primarily on opinion leaders.
D. Early adopters make little use of salespeople.
E. The late majority make the most use of salespeople.
A publisher needed one of its best-selling authors to fly from his home in Richmond,
Virginia to Chicago, Illinois in order to start a publicity campaign for the author's new
book. The author could have taken a flight to Detroit, Michigan, changed planes, and
then flew on to Chicago for about half the price of a non-stop flight from Richmond to
Chicago. However, he chose the non-stop flight. He became less price sensitive because
of:
A. The availability of substitutes.
B. The fact that someone else was paying the bill.
C. The significance of the end benefit.
D. The size of the total expenditure.
E. The sunken investment he had made.
A typical cost for a focus group interview of 6 to 10 participants is about:
A. $1,000.
B. $2,000.
C. $3,000.
D. $4,000.
E. $5,000.
Southwest Airlines' "Ding" widget pops up on your computer desktop to let you know
of lower fares to cities you want to visit. This is an example of a(n) _________
promotion objective.
A. Persuading
B. Reminding
C. Informing
D. Pioneering
