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Which of the following observations concerning the full-cost approach is NOT TRUE?
A. All costs are not allocated in all situations.
B. It requires that difficult-to-allocate costs be split on some basis.
C. Fixed costs are also allocated in some way.
D. It could lead to a different decision than the one suggested by the contribution
margin approach.
E. Common costs are also allocated in some way.
A purchase having some multiple influence and requiring some information would fit
the description of a
A. new-task buy.
B. modified buy.
C. straight rebuy.
D. modified rebuy.
E. simplified buying.
In a down economy, a local florist surveys her customers to determine the amount they
feel comfortable spending for a bouquet of flowers. Then she displays bouquets costing
that exact amount in her refrigerated case. This is an example of:
A. Reference price
B. Line price
C. Bundle price
D. Leader price
E. Demand-backward price
Early adopters
A. can help the promotion effort by spreading word-of-mouth information and advice
among other consumers.
B. tend to rely on impersonal and scientific information sources, or other innovators,
rather than salespeople.
C. avoid risk and wait to consider a new idea after laggards have tried itand liked it.
D. make little use of marketing sources of informationmass media and salespeople.
E. tend to look to the early majority group for advice.
Which of the following observations about advertising agencies is FALSE?
A. They are specialists in planning and handling mass-selling details for advertisers.
B. They are dependent on the advertiser and have a mixed viewpoint.
C. They may be full-service agencies who handle any activities related to advertising,
publicity, or sales promotion.
D. They may even handle overall marketing strategy planning.
E. They can often do the job more economically than a company's own department.
Which of the following is a strategy to combat consumer showrooming?
A. Integrating online and brick-and-mortar store operations.
B. Utilizing big data analytics.
C. Scrambled merchandising.
D. Central stocking from multiple channels.
E. Amazoning the product line.
"Derived demand" is best illustrated by the demand for:
A. tea as a substitute for coffee.
B. brick because of increasing demand for new homes.
C. fresh raspberries during the winter months.
D. CD players because of increasing interest in CD audio discs.
E. All of these are good illustrations of derived demand.
All of the following are examples of dealer brands EXCEPT:
A. Craftsman Tools
B. Up and Up
C. Sam's Choice
D. McDonald's
E. Kenmore
A producer that is selling all its products under one brand name is using
______________ brand.
A. a family
B. a generic
C. a licensed
D. a national
E. an individual
Electro Technologies, Inc. (ETI) has limited capital and wants to reduce the risk of
competitors taking customers if it invests in a new product-market. Its broad
product-market consists of three reasonably distinct submarkets. To identify a target
market, ETI should probably focus on using the __________ approach.
A. combined target market
B. mass marketing
C. multiple target market
D. single target market
E. None of these is a good choice for Electro Technologies.
In its ads, General Mills highlights the advantages of its Milk 'n Cereal breakfast bars
over Kellogg's breakfast bars. This is:
A. comparative advertising.
B. primary advertising.
C. selective advertising.
D. reminder advertising.
E. institutional advertising.
In Switzerland,
A. any advertisement targeted directly at children is banned.
B. political ads are limited on TV.
C. print ads must be identified so they are not confused with editorial matter.
D. competitive and comparative advertising is banned.
E. an advertiser cannot use an actor to represent a consumer.
Regarding our MACRO-marketing system, the text suggests that:
A. consumers' freedom of choice should be reducedfor the good of society.
B. some changes may be necessarybut consumer-citizens should vote on these changes.
C. marketing managers should limit consumers' freedom of choice.
D. marketing managers should produce only what they feel is good for consumers.
E. None of these alternatives is correct.
A marketing audit:
A. takes a big view of the business.
B. evaluates the whole marketing program.
C. may be done internally or externally.
D. requires a detailed look at the company's current marketing plans.
E. All of these are correct.
______________ sell hardware, jewelry, and sporting goods out of a catalog to small
industrial or retail customers that other wholesalers may not call on.
A. Specialty wholesalers
B. Cash-and-carry wholesalers
C. Selling agents
D. Catalog wholesalers
E. Truck wholesalers
Lacey Springs Apple Co. buys fresh apples in truckload quantities, regroups the
heterogeneous commodities into homogeneous lots according to grade and quality, and
then sells them to retailers. This "regrouping activity" is called:
A. accumulating.
B. bulk-breaking.
C. sorting.
D. wholesaling.
E. assorting.
The Wheeler-Lea Amendment specifically aims at:
A. product warranties.
B. product safety.
C. unfair or deceptive practices.
D. tying and exclusive dealing contracts.
E. mergers and acquisitions.
_____ means getting customers to ask intermediaries for the product.
A. Pulling
B. Pushing
C. Branding
D. Underwriting
E. Forecasting
Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories
(SGCA), is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming
stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide,
but in California is carried in only 10 percent of stores. So, Kayla has set an objective of
being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits
its target market of teen and young adult gamers. The SuperDuperGamer uses a new
technology and is expected to be a breakthrough product, but it will be important to
build awareness for it to succeed. So, the advertising objective is for 40% of SGCA's
target market to be aware of the new SuperDuperGamer model within 3 months. SGCA
also wants to help its retailers reduce their current stock of SuperGamer computers
before the new model comes out in a month. The SuperGamer has been on the market
for two years and has been a top seller in the category. SGCA's advertising objective for
the SuperGamer computer is to reduce current dealer stock by 80% within the next
month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to
significantly enhance the game-playing experience with older computers. Research with
gamers show that it is very well received, so the advertising objective for the
SuperEnhancer sound card is to gain 40% market share among all gaming-specific
sound cards in the next year. To help achieve that objective, Jurgenson is planning to
use an ad that shows the sound card and a game player being knocked off his chair by
the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the
SuperEnhancer Sound Beats All Others!"
Given the advertising objective for the old SuperGamer model, which of the following
types of advertising would be most appropriate?
A. ads with price deal offers
B. a teaser campaign
C. informative descriptive ads
D. pioneering ads
E. institutional ads
The American Heart Association promotes its awareness campaign with the popular
tagline, "Learn and Live." Here, The American Heart Association's marketing effort
focuses on satisfying what level in the hierarchy of needs?
A. Social
B. Safety
C. Physiological
D. Personal
Rob Rose sat back to review the portfolio of products his company, Wire Products Inc.
(WPI), has in its product line. The company specializes in making various products for
consumer and industrial uses from hard laminated wirecoated with special paints.
1) WPI's "Wire Closet" products have been on the market for 10 years. Consumers
install the wire shelves and closet rods themselves. The market leader, Closetmaid, has
been selling similar products for more than 20 years, but so far the sales volume and
profits for the market continue to grow. Recently, several new competitors have come
into the market.
2) Three months ago, WPI entered the lawn and garden market with folding fences
made with laminated wire and branded as "Wire Fold-Fence." Previously, WPI had
never made fences or been a player in the lawn and garden market-although other
companies have been making products in this market for years. However, Rob Rose has
discovered that recent sales of wire garden fencing have leveled off and profits are
declining overall. Still, WPI thinks it has some cost advantages and can grow its own
sales and profits in this market.
3) WPI has just developed "Oil Wire," a new concept for the environmental cleanup
market. Oil Wire is coated with a special material that cleans up oil spills. There has
never been a product like this and WPI wants to quickly get the word out about its
benefits. The product is now being rolled out in selective markets.
4) Another business product is "Wire Locker" used for secure storage by gymnasiums
or companies. This style of locker has now gone out of fashion and most customers are
finding better materials to use for lockers. Aggressive selling has helped Wire Locker's
sales stay flat, but the total market for wire style lockers is only half of what it was 10
years ago.
5) WPI's "Wire Window" product is used as a security product to protect glass
windows. It sells to homeowners and retailers looking for additional safety. WPI's sales
of this product have dropped in recent years because competitors have introduced
maintenance-free products. However, the overall market for this type of product
continues to show good growth.
6) WPI is running concept tests of a new wire car-top carrier called "Wire Car Top."
There are other car-top carrier products on the market, but WPI plans to include options
in its carrier that will make it easier to load bikes, skis, and suitcases. "Wire Car Top" is
also very easy to put on and take off of the car because of its light weight and
ease-of-use features. The concept tests are helping WPI analysts develop rough
estimates of costs, sales, and profits.
7) Another new product idea, tentatively called "Wire Tent," is being considered. It
would use laminated wires to create a portable tent frame. This product is currently
being evaluated to determine its fit with the company's objectives and external market
trends.
Rob is thinking about the product life cycle, where each product fits, and what he
should be doing as part of his marketing plan for each of these products.
In which stage of the product life cycle is "Wire Locker"?
A. Market introduction
B. Sales decline
C. Market development
D. Market growth
E. Market maturity
Which of the following is NOT a likely advantage of vertical integration?
A. Lower capital requirements.
B. Lower executive overhead.
C. Better control of distribution.
D. Better quality control.
E. Greater buying power.
Cooperative chains:
A. are sponsored by wholesalers to try to compete with corporate chains.
B. are experiencing declining sales.
C. are formed by independent retailers to run their own buying organizations and
conduct joint promotion efforts.
D. are consumer groups who run nonprofit buying associations.
E. None of these alternatives is true for cooperative chains.
In a buying center, which of the following are likely to be influencers?
A. Purchasing managers who arrange the terms of the sale.
B. People who supply information for evaluating alternatives.
C. People who have the power to select or approve suppliers.
D. People who control the flow of information.
E. Purchasing managers who shield users or other deciders.
From the perspective of macro-marketing, e-commerce specialists CarFax (which
provides vehicle history reports) and Cars.com (a website offering auto comparison
shopping) have emerged within the auto industry because:
A. auto manufacturers need to sell direct to consumers.
B. the market needs competitive rivals to auto dealerships.
C. the information they provide makes the exchange process between producers and
consumers more efficient and effective.
D. the role of the automotive sales person is becoming obsolete.
E. consumers live far distances from most automotive plants
Which of the following is NOT true when comparing goods and services?
A. Customers rely more heavily on recommendations when purchasing goods as
compared to services.
B. Services are intangible while goods are tangible.
C. Goods are easily stored while services cannot be stored.
D. It is easier to produce consistent quality goods as compared to services.
E. Services are usually produced in front of customers, whereas goods are not.
Which of the following statements about prospecting is FALSE?
A. Prospecting focuses on identifying new customers.
B. A sales rep needs to set priorities for all prospectsboth old and new.
C. A sales rep must qualify potential customers.
D. CRM systems help with the process of prospecting.
E. None of these statements about prospecting is FALSE.
According to the text, social class in the U.S. is usually measured in terms of:
A. income.
B. occupation, education, and housing arrangements.
C. income, occupation, and education.
D. race, religion, and occupation.
E. income, occupation, and religion.
From the perspective of the four Ps, personal selling is to advertising as
A. mass selling is to branding.
B. Place is to Product.
C. sales promotion is to pricing.
D. warranties are to channel type.
E. geographic terms are to price allowances.
Which of the following statements is True regarding social responsibility in marketing?
A. Being socially responsible usually leads to a negative response from customers.
B. Being socially responsible can conflict with a firm's profit objective.
C. Companies tend to avoid developing written codes of ethics because standards for
professional behavior are ambiguous by nature.
D. Firms tend to advance their own short-term interests at the expense of customers.
Regarding consumer product classes, a convenience product is to an emergency product
as
A. a staple is to an emergency product.
B. a shopping product is to a heterogeneous shopping product.
C. an unsought product is to a specialty product.
D. a new unsought product is to a regularly unsought product.
E. a specialty product is to a homogeneous shopping product.
A retail store that averages about $17 million in sales annually and specializes in
grocerieswith self-service and large assortments is a:
A. mass-merchandiser.
B. specialty shop.
C. convenience food store.
D. discount house.
E. supermarket.
