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Committee buying in large retail chains
A. makes the buyers work as a group and thus lower costs.
B. allows a sales rep to avoid a difficult buyer.
C. makes it difficult for the seller to see a buyer personally.
D. reduces the impact of a persuasive sales rep.
E. All of these alternatives are correct.
Answer:
A group of new-generation mothers blogging about products they like and dislike
attracts a lot of readers, mainly those who are expecting a baby. These new-generation
mothers are examples of ____.
A. message mediators
B. gatekeepers
C. liaisons
D. opinion leaders
E. category captains
Answer:
To assess products through the eyes of the consumer, managers should:
A. focus on tangible product components.
B. focus on production quality.
C. focus on pricing.
D. focus on the total satisfaction and benefits for users.
E. focus on eye-catching packaging.
Answer:
Retail order getters are usually required for:
A. unsought products.
B. homogeneous shopping products.
C. impulse products.
D. emergency products.
E. None of these products is a good answer.
Answer:
Consumer emphasis on fitness has created opportunities for firms like Nike, Nautilus
and Schwinn, and illustrates the impact of the changing:
A. technological environment.
B. economic environment.
C. competitive environment.
D. cultural and social environment.
E. political and legal environment.
Answer:
Which of the following statements concerning "reference prices" is FALSE?
A. A reference price is the price consumers expect to pay for an item.
B. Retailers sometimes want consumers to use the manufacturer's list price as the
reference price even though their actual retail selling price is lower.
C. Different customers may have different reference prices for the same type of
purchase.
D. Leader pricing is normally used with products for which consumers do not have a
specific reference price.
E. None of these statements about "reference prices" is FALSE.
Answer:
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
Answer:
Having a competitive price is likely to
A. be more important for a homogeneous shopping product than for a specialty product.
B. be more important for a heterogeneous shopping product than for a homogeneous
shopping product.
C. be more important for an emergency product than for a staple.
D. keep a product from falling into the "unsought" product class.
E. None of these alternatives is correct.
Answer:
The text's "Toddler University" example shows that:
A. parents are not price sensitive when it comes to assuring that their kids will get a
good college education.
B. the needs of a target market determine the nature of the appropriate marketing mix.
C. a small producer can't compete effectively against large competitors.
D. in the long run, a firm cannot make a profit without its own production facilities.
E. All of these are TRUE.
Answer:
A professional salesperson:
A. is only expected to "get rid of the product."
B. has only one basic job-to communicate the company's story to customers.
C. may be given a title such as field manager or market specialist.
D. is expected to overcome the customer's objection-whatever it may be.
E. None of these alternatives is correct.
Answer:
Which of the following is the WORST example of an advertising objective?
A. "We want to increase awareness among the members of the target audience by 10
percent within three months after the start of our advertising campaign."
B. "We want 50 percent of the television audience for the Super Bowl to recall having
seen a commercial for our product during the game."
C. "We want our advertising to create favorable word-of-mouth promotion for our
product."
D. "We want our banner ad on the Yahoo! homepage to generate 50,000 page views
(hits) on our corporate website within the first week that it appears on the World Wide
Web."
E. "We want our infomercial running on cable television stations to generate 10,000
orders for the advertised product within one month after it starts."
Answer:
Ali Mulhammed has been working for a producer of video games that sell through toy
wholesalers to retailers. He knows all about the games sold by his company and by
competitors. He goes into his wholesalers' territories and tries to get local retailer
customers interested in the company's line-and even trains retailers to demonstrate the
games. When a retailer is ready to buy, Ali turns the business over to the wholesaler's
sales rep. Ali is a:
A. member of the firm's major accounts sales force.
B. missionary salesperson.
C. technical specialist.
D. manufacturers' agent.
E. None of these jobs is correct.
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."
National Printing Equipment has:
A. been violating the Sherman Act.
B. been violating the Robinson Patman Act.
C. a status quo pricing objective.
D. a skimming price policy.
E. a flexible pricing policy.
Answer:
VoiceSys, Inc. produces voice-mail switchboard systems used in large office buildings,
hotels, and other facilities. VoiceSys's products are selling so well that it has decided to
buy new equipment that will increase its production capacity. This example best
illustrates
A. why the demand for a particular seller's equipment is inelastic.
B. derived demand.
C. why the industry demand for this kind of equipment is quite elastic.
D. that the market for installations is a "boom or bust" business.
E. All of these alternatives are correct.
Answer:
A modified rebuy is MOST likely to occur for:
A. file folders.
B. brooms.
C. paper clips.
D. a desk.
E. copier paper.
Answer:
Marketing
A. means 'selling" or "advertising."
B. provides direction for production.
C. involves actually making goods or performing services.
D. does not impact consumers' standard of living.
E. is the development and spread of new ideas, goods, and services.
Answer:
Use this information for question that refer to the Sporting Products, Inc. (SPI) case.
Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about
how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI
sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent
markup and most of its 'sport shop" retailer customers, like Robinson's Sporting Goods,
use a 33 percent markup to arrive at the price they charge final consumers. However,
one fast growing retail chain, Sports Depot, only uses a 20 percent markup for
basketballs, even though it pays Wholesale Supply the same price as other retailers.
Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them
at cost-to draw customers into its stores and stimulate sales of its pricey basketball
shoes.
Sports Depot is also using other pricing approaches that are different from the sports
shops that usually handle SPI products. For example, Sports Depot prices all of its
baseball gloves at $20, $40, or $60-with no prices in between. There are three big bins -
one for each price point.
Todd is also curious about how Sports Depot's new strategy to increase sales of tennis
balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit
groups who resell the balls to raise money. For example, a service organization at a
local college bought 2,000 tennis balls printed with the college logo. Sports Depot
charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print
the logo. The service group plans to resell the tennis balls for $2.50 each and contribute
the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is
considering adding tennis racquets to the lines it produces. This would require a
$500,000 addition to its factory as well as the purchase of new equipment that costs
$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd
thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow
most retailers to add their normal markup and make a profit. However, if Sports Depot
sells the racquet at a lower than normal price other retailers might decide to carry it.
Which of the following would NOT be one of SPI's fixed costs in the production of
basketballs?
A. rent on the building used to store inventory of balls
B. rubber used to make the balls
C. property taxes for the building used to make the balls
D. depreciation on the equipment used to make the balls
E. insurance on the building used to make the balls
Answer:
A company with a large product assortment might
A. have many product lines with little selection in each.
B. have a single product line.
C. have many individual products.
D. All of these choices are correct.
Answer:
An "economic buyer" is a person who:
A. Makes buying decisions based on behavioral needs rather than economic needs.
B. Logically compares choices to get the greatest satisfaction from expenditures of time
and money.
C. Always buys the product that has the lowest price.
D. Is not willing to pay extra for convenience.
E. All of these are characteristics of an "economic buyer."
Answer:
In which of the following distribution channels is the firm most likely to maintain
control of the marketing mix?
A. Direct
B. Indirect
C. Cooperative
D. Layered
E. Horizontal
Answer:
Use this information for question that refer to the Sporting Products, Inc. (SPI) case.
Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about
how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI
sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent
markup and most of its 'sport shop" retailer customers, like Robinson's Sporting Goods,
use a 33 percent markup to arrive at the price they charge final consumers. However,
one fast growing retail chain, Sports Depot, only uses a 20 percent markup for
basketballs, even though it pays Wholesale Supply the same price as other retailers.
Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them
at cost-to draw customers into its stores and stimulate sales of its pricey basketball
shoes.
Sports Depot is also using other pricing approaches that are different from the sports
shops that usually handle SPI products. For example, Sports Depot prices all of its
baseball gloves at $20, $40, or $60-with no prices in between. There are three big bins -
one for each price point.
Todd is also curious about how Sports Depot's new strategy to increase sales of tennis
balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit
groups who resell the balls to raise money. For example, a service organization at a
local college bought 2,000 tennis balls printed with the college logo. Sports Depot
charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print
the logo. The service group plans to resell the tennis balls for $2.50 each and contribute
the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is
considering adding tennis racquets to the lines it produces. This would require a
$500,000 addition to its factory as well as the purchase of new equipment that costs
$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd
thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow
most retailers to add their normal markup and make a profit. However, if Sports Depot
sells the racquet at a lower than normal price other retailers might decide to carry it.
How could Randy Todd use break-even analysis with his tennis racquet decision?
A. To reveal the combination of quantity and price that gives the highest profit
B. To set the most profitable price
C. To estimate future sales
D. To compare the break-even quantity for different prices with the likely level of
demand
E. To determine Wholesale Supply's likely selling price
Answer:
The publishing channel maintained by a firm, such as a blog, YouTube channel, or
Facebook page, is an example of owned media.
Answer:
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.
Answer:
Which of the following observations is true?
A. Market share objectives and straight sales growth objectives have similar limitations.
B. A larger market share, gained at whatever price, leads to sustainable competitive
advantage.
C. Market share objectives are not popular among modern managers.
D. Sales growth essentially means bigger profits.
E. A sales-oriented objective does not refer to profit.
Answer:
Swanson Beverages, Inc., is using ______________ to compare the strengths and
weaknesses of its current target market and marketing mix with what its competitors are
doing (or are likely to do).
A. clustering
B. scenario analysis
C. brand positioning
D. marketing mix review
E. competitor analysis
Answer:
Which of the following is NOT true about how online retailers and big data?
A. Online retailers personalize customer shopping experiences with big data.
B. Online retailers can track what consumers do on their website.
C. Online retailers can tell if a consumer watches a video on its site.
D. It is illegal for online retailers to monitor what information customers do on a
competitor's site.
E. Online retailers can pull information from a customer's Facebook page.
Answer:
The value of a brand to its current owner or to a firm that wants to buy it is called
A. brand preference.
B. brand equity.
C. brand identity.
D. brand positioning.
E. brand reference.
Answer:
A profit maximization pricing objective
A. is a sales-oriented pricing objective.
B. does not always lead to high prices.
C. can never be socially responsible.
D. is often stated as percentage of market share.
E. is a status quo oriented pricing objective.
Answer:
Liz Edwards is a sales associate for a major retailer of high-quality cooking supplies,
housewares, and furniture. She is paid an hourly wage, plus she gets an additional sum
of money that is a percentage of the dollar sales of all the sales associates combined
during the hours that she works. Liz is working under a(n)
________________________ compensation plan.
A. Straight salary
B. Combination
C. Straight commission
D. Incentive
E. None of these is a good answer
Answer:
A specialist within a company who is responsible for all of the company's major
purchases is called all of the following EXCEPT:
A. supply manager.
B. procurement officer.
C. buyer.
D. salesperson.
E. purchasing agent.
Answer:
The early antimonopoly (or "pro-competition") laws passed in the United States:
A. include the Federal Trade Commission Act and the Clayton Act.
B. began with the Sherman Act in 1890.
C. affect the 4Ps and marketing mix planning.
D. focus more on protecting competition than protecting consumers.
E. All of these are correct.
Answer:
Compared with other approaches to business, the marketing concept is distinct in that it:
A. focuses on profits.
B. produces new products and services.
C. creates a broad assortment of products.
D. produces quality products.
E. focuses on satisfying customers' needs.
Answer:
