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It is not uncommon for sales personnel at The Electronics Showroom to use aggressive
sales tactics to encourage customers to buy Giant-Size brand televisions. Giant-Size has
encouraged this behavior by using:
A. advertising allowances.
B. push money allowances.
C. stocking allowances.
D. trade-in allowances.
E. slotting allowances.
Answer:
Typically, firms need a hierarchy of objectives. Which of the following best represents a
correct hierarchy of a firm's objectives?
A. Company objectives, sales promotion objectives, marketing objectives, promotion
objectives.
B. Marketing objectives, company objectives, promotion objectives, sales promotion
objectives.
C. Company objectives, marketing objectives, promotion objectives, sales promotion
objectives.
D. Marketing objectives, promotion objectives, sales promotion objectives, company
objectives.
E. Promotion objectives, sales promotion objectives, company objectives, marketing
objectives.
Answer:
A company has total fixed cost of $400,000. Its fixed-cost contribution per unit is
$10.00, and its price per unit is $5.00. What is the break-even point in sales dollars?
A. $200,000
B. $2,000,000
C. $4,000,000
D. $800,000
E. Cannot be determined from the information provided
Answer:
The basic promotion objectives and adoption process fit very neatly with an
action-oriented model, which is called the
A. bricks and clicks model.
B. bait and hook model.
C. AIDA model.
D. DAGMAR model.
E. economic buyer model.
Answer:
When developing a marketing mix, a marketing manager should remember that:
A. "Promotion" includes only personal selling and publicity.
B. A channel of distribution includes at least one intermediary.
C. "Price" includes markups, discounts, allowances, and geographic terms.
D. "Product" includes physical goods but not services.
Answer:
In the U.S., jewelry stores spend about ______ percent of their sales dollars on
advertising.
A. 1
B. 3
C. 6
D. 9
E. 12
Answer:
Product type determining dimensions
A. are generally relevant to purchasing behavior.
B. affect the customer's purchase of a specific product brand.
C. affect the customer's choice of a specific kind of product.
D. are relevant to including a customer type in the product-market.
E. are less specific than qualifying dimensions.
Answer:
E-commerce jewelry retailer SparklesNow announces a contest inviting its regular
online members to submit contemporary jewelry designs. Winning designs and entries
are chosen based on ratings and comments from other members. SparklesNow is using
______ to get new ideas from customers.
A. crowdsourcing
B. creative resourcing
C. reverse engineering
D. idea roll out
E. idea magnets
Answer:
Regarding population density in the world,
A. high-population density occurs only in highly developed economies.
B. some Western European and Asian urban areas are more crowded than U.S. urban
areas.
C. the United States is the only country with crowded urban areas.
D. there is a worldwide movement back to rural areas.
E. None of these is correct regarding population density in the world.
Answer:
Use this information for question that refer to the Pricing 1 case. (WPI) case.
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. Regarding 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."
Which business offers a NONCUMULATIVE quantity discount?
A. Jack's One Hour Cleaners
B. Digital Imaging
C. National Printing Equipment
D. Ross Pharmaceuticals
E. Bella Computers
Answer:
Which of the 4Ps in the marketing mix is most directly related to the warranty that
comes with a new digital camera?
A. Product
B. Place
C. Promotion
D. Price
Answer:
The current status of the "battle of the brands" is that:
A. dealer brands will seek narrower distribution in the future.
B. retailers now control the marketplace.
C. the vast majority of consumers clearly prefer manufacturer brands over dealer
brands.
D. manufacturers are gaining on intermediaries.
E. competition has reduced the gap in prices.
Answer:
A retail store advertises an SLR digital camera for $350. Once bargain hunters come to
the store, salespeople point out the disadvantages of the low-priced camera and try to
convince them to trade up to a better, and more expensive, unit. This is an example of
A. price following.
B. bait pricing.
C. odd-even pricing.
D. low pricing.
E. everyday low pricing.
Answer:
Which of the following firms is exploring a market development opportunity?
A. The Coleman camping gear company boosts sales of popular lanterns by setting up
promotional displays at well-attended outdoor events.
B. Campbell's targets health-conscious consumers with a new line of low-sodium soups.
C. McDonald's opens two upscale hotels in Switzerland to serve families and business
travelers.
D. The E-Z-Go golf cart company begins selling golf carts for use in malls, factories,
and airports.
E. Mammoth Mountain Ski Resort offers horseback riding and a mountain bike park for
summer visitors.
Answer:
Which of the following is an economic need which helps explain why consumers
choose a particular retailer?
A. Prestige
B. Status
C. Comfort
D. Value
E. Safety
Answer:
To understand the narrowing-down process, it's useful for mangers to think in terms of a
_____ market and a _____ market.
A. generic; product
B. buyer's; seller's
C. goods; services
D. primary; secondary
E. risky; certain
Answer:
The big difference between the consumer products market and the business products
market is
A. demand.
B. derived demand.
C. supply.
D. availability.
E. price sensitivity.
Answer:
Keith McPherson earned $20,000 last year as a carpenter. He paid $6,000 for food, rent,
medical expenses, and other "necessities." There was little construction work in
February, so he took a trip to the Caribbean and spent $4,000. What was Keith's
discretionary income last year?
A. $4,000
B. $20,000
C. $10,000
D. $12,000
E. There is not enough information to determine Keith's discretionary income.
Answer:
Which of the following steps in the personal selling process typically occurs before the
target customer is selected?
A. Follow up after sales call
B. Preplan sales call
C. Make sales presentation
D. Set effort priorities
E. Close sale
Answer:
Direct-response promotion may include:
A. interactive video
B. mail
C. website
D. broadcast
E. all of these could be included in direct-response promotion
Answer:
Which of the following statements about doing a situation analysis is correct?
A. Libraries have good data on specific topics, but it is expensive to find.
B. It doesn't make sense to start a situation analysis until the problem has begun to
surface.
C. Much good data are available from the government, but expensive.
D. A good situation analysis is usually more expensive than collecting primary data.
E. None of these statements about doing a situation analysis is true.
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 task-since it is not easy to affect buying behavior.
D. All of these alternatives are correct.
Answer:
Which of the following advertising media would be best for achieving the widest reach?
A. Newspaper.
B. Direct mail.
C. Television.
D. Outdoor.
E. Magazines.
Answer:
Which of the following sales promotion activities is aimed primarily at a company's
own sales force?
A. Promotion allowances
B. Bonuses
C. Coupons
D. Free samples
E. Point-of-purchase materials
Answer:
Most critics of marketing who argue that marketing managers help create monopoly or
monopolistic competition, feel this leads to:
A. restriction of output.
B. higher prices.
C. reduction in the national income.
D. more unemployment.
E. All of these alternatives are correct.
Answer:
InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers,
and other hardware from a large producer in the Netherlands, breaks these shipments
into smaller quantities, and sells them to other wholesalers and retail chains. This
"regrouping activity" is called:
A. assorting.
B. wholesaling.
C. accumulating.
D. bulk-breaking.
E. sorting.
Answer:
At least ________ percent of the total U.S. labor force performs sales work.
A. 20
B. 10
C. 30
D. 50
E. 40
Answer:
According to the text, your social class level does NOT depend directly on your:
A. type and location of housing.
B. income level.
C. occupation.
D. education.
E. any of these.
Answer:
Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport
is he more likely to use?
A. Airways
B. Truck
C. Railroad
D. Inland waterways
E. Monorail
Answer:
Compared to conventional retailers, which of the following types of retailers added
more convenience, while reducing product assortment?
A. Door-to-door salespeople.
B. Department stores.
C. Specialty shops.
D. Single-line stores.
E. Supercenters.
Answer:
In a command economy, government officials decide:
A. who is to produce and distribute what to whom.
B. how much is to be produced.
C. how much is to be distributed to whom.
D. what is to be produced.
E. government officials decide on all of these.
Answer:
A marketing researcher wants to do a survey to probe in-depth consumer attitudes about
their experiences with the company's products. He is LEAST likely to get what he
wants if he uses:
A. personal interviews.
B. online focus groups.
C. telephone interviews.
D. a mail survey.
E. None of these choices is very useful for getting in-depth information about consumer
attitudes.
Answer:
Considering weight, the most expensive transporting mode is:
A. pipelines.
B. railroads.
C. trucks.
D. inland waterways.
E. airfreight.
Answer:
A rebate is:
A. a temporary discount from the price list.
B. a reduction in price to encourage buyers to pay their bills quickly.
C. a temporary price cut to attract customers.
D. a refund paid to consumers after a purchase.
E. a document detailing pricing changes.
Answer:
