Information technology involves a trade-off because it cannot improve service levels
and cut costs at the same time.
Answer:
A long-term commitment by an organization to a partner may reduce flexibility.
Answer:
Planning, implementation, and control are basic jobs of all managers.
Answer:
In general, no single element of the “four Ps” is more important than the others.
Answer:
The four promotion jobs of the AIDA model are to get Attention, to hold Interest, to
arouse Desire, and to obtain Action.
Answer:
In zone pricing, the seller pays the actual freight charges and bills each customer the
exact amount.
Answer:
Marketing managers turn information into knowledge when they use their experience to
answer “how” and “why” questions.
Answer:
Low transporting cost is not the only criterion for selecting the best mode of
transportation.
Answer:
Attractive opportunities should make use of a firm’s resources and its unique strengths.
Answer:
One way to increase customer equity is to find cost-effective ways to serve current
customers so they buy more.
Answer:
Attitudes, Income and Opinions are the “AIO” variables used in lifestyle analysis.
Answer:
How quickly a new product will be accepted by customers and how quickly competitors
will follow with their own version of a product are important factors when planning the
best strategy for a new product.
Answer:
When it comes to choosing among different types of opportunities, most firms tend to
be production-oriented and usually think first of diversification.
Answer:
Product, Place, Promotion, and Price are the four major variables (decision areas) in a
firm’s marketing mix.
Answer:
The stockturn rate is the number of times the average inventory must turnover to make
a profit in a given year.
Answer:
If a firm produces the right goods or services, marketing has little role to play in
creating customer satisfaction.
Answer:
“Voluntary chains” are retailer-sponsored groups-and “cooperative chains” are
wholesaler-sponsored groups.
Answer:
In light of the relationships between consumer expectations and satisfaction, it’s usually
best for promotion to slightly “over promise” what the firm can actually deliver.
Answer:
Marketers who want to aim at people within several different cultures usually will be
able to use the same marketing mix for all of them.
Answer:
The micro view of marketing is mainly concerned with the activities performed by
organizations.
Answer:
In business markets, buyer-seller relationships tend to be an “all-or-nothing”
arrangement-either very close or not at all close.
Answer:
In states which have unfair trade practice acts, wholesalers and retailers are usually
required to mark up merchandise a certain minimum percentage above cost.
Answer:
Relationship-specific adaptations are usually not required when the buying organization
uses outsourcing.
Answer:
With new types of interactive promotion, the communication process is often initiated
by the buyer.
Answer:
The ‘selling formula” approach to making a sales presentation is really a combination of
the “prepared sales presentation” approach and the “consultative selling” approach.
Answer:
The American economy and most other Western economies are completely
market-directed.
Answer:
The risks and costs of failure in new-product development are minor when one
considers the likely rewards.
Answer:
“Breakthrough opportunities” are ones that help innovators develop hard-to-copy
marketing strategies that will be profitable for a long time.
Answer:
A “marketing program” blends all of a firm’s marketing plans into one “big” plan.
Answer:
Electronic shopping, which puts catalogs on cable TV or Internet websites, has not yet
succeeded.
Answer:
The marketing strategies for the two shoe retailers Payless and Zappos are very
different, and Zappos’ strategy is successful while Payless’ strategy is not.
Answer:
Prospecting involves following all the “leads” in the target market.
Answer:
All customers have the same reference price for the same basic type of purchase.
Answer:
Export and import agents are basically manufacturers’ agents who specialize in
international trade.
Answer:
Manufacturers’ agents do not take title to the products they sell-and are paid a
commission on sales.
Answer:
A channel of distribution must include an intermediary.
Answer:
Because NAFTA is a short-term proposition, its economic impact has already been as
significant as it is likely to be.
Answer:
Just-in-time delivery reduces storing and handling costs for business customers.
Answer:
Gradual “rollouts” are characteristic of which step of the new-product development
process?
A. Idea generation
B. Development
C. Idea screening
D. Idea evaluation
E. Commercialization
Answer:
“Promotion” is MAINLY concerned with:
A. obtaining a favorable corporate image.
B. telling the target market that the right Product is available in the right Place at the
right Price.
C. obtaining maximum publicity-at the lowest cost.
D. informing the public about the firm’s offerings to maximize sales.
E. getting people to buy a firm’s product-even when it isn’t needed.
Answer:
Sales promotion activities:
A. can usually be implemented quickly and get results sooner than advertising.
B. may be aimed at final consumers, intermediaries, and/or a firm’s own sales force.
C. cost more than the total expenditures on advertising.
D. are currently a weak spot in many firms’ marketing strategies.
E. All of these alternatives are correct.
Answer:
Drue Valentine is a management consultant who helps manufacturers improve their
quality-control procedures for new products. Drue is selling:
A. supplies.
B. components.
C. accessories.
D. MROs.
E. professional services.
Answer:
More women working outside the home and greater interest in leisure are examples of
changes in the ______________ environment.
A. technological
B. cultural and social
C. economic
D. legal
E. competitive
Answer:
Information is obtained on a continuing basis from the same respondents using a:
A. contributor group.
B. consumer panel.
C. responder group.
D. consumer experiment.
E. statistical package.
Answer:
Walgreens Drugstores buys a bottle of shampoo from a wholesaler for $3.25 and then
places it on a shelf with a price tag of $4.64. What is Walgreens’ markup on selling
price (expressed as a percent)?
A. 20 percent
B. 26 percent
C. 30 percent
D. 43 percent
E. 48 percent
Answer:
Which of the following illustrates that time and surroundings are factors of the purchase
situation that can greatly stimulate buying behavior?
A. Routine trip to grocery store
B. Using mass transit to and from work
C. Black Friday shopping
D. Buying online
E. Paying monthly cell phone bill
Answer:
The best way to ship a heavy product like iron ore from St. Louis, Missouri, to New
Orleans, Louisiana, in the Spring season with no arrival deadline is to use:
A. Air
B. Truck
C. Pipeline
D. Rail
E. Water
Answer:
If a service firm sets a specific price for each possible job-rather than setting a standard
price for all potential customers-it is most likely using:
A. product-bundle pricing.
B. a one-price policy.
C. price lining.
D. average-cost pricing.
E. bid pricing.
Answer:
Which of the following is likely to have the lowest total personal selling expenses?
A. A company with salespeople on a combination plan and low sales volume
B. A company with salespeople on straight salary and low sales volume
C. A company with straight commission salespeople and high sales volume
D. A company with salespeople on straight salary and high sales volume
E. A company with straight commission salespeople and low sales volume
Answer:
Which of the following statements about limited-function wholesalers is TRUE?
A. Cash-and-carry wholesalers serve small retailers but don’t provide credit.
B. Truck wholesalers sell perishable products that other wholesalers prefer not to carry.
C. Rack jobbers specialize in nonfood products that sell in small quantities.
D. Catalog wholesalers sell hardware, jewelry, sporting goods, and general
merchandise-often catering to small industrial or retailer customers.
E. All of these statements about limited-function wholesalers are TRUE.
Answer:
Sarah Manchester works for a cable TV company in a large city. She consults with
architects and builders who want advice about planning for a home theater set-up before
a home is built and wired. The cable company created Sarah’s position when it learned
that a local satellite TV service provider was signing up a larger share of new home
owners in luxury subdivisions. Sarah is a(n):
A. technical specialist.
B. sales promotion specialist.
C. order taker.
D. order getter.
E. customer service rep.
Answer:
A product assortment is:
A. something offered by manufacturers but not by retailers.
B. a particular product within a product line.
C. a set of products that are closely related.
D. the set of all product lines and individual products that a firm sells.
E. None of these alternatives is correct.
Answer:
If a Universal computer monitor breaks while it is still under warranty, someone needs
to get it to the repair center. In this case, Universal will need:
A. reverse channels.
B. multichannels.
C. intensive distribution.
D. exclusive distribution.
E. selective distribution.
Answer:
Charlie Ferragamo is a sales representative for the Season-All Spice Company, and sells
spices to large food service operations and restaurants. Charlie used to be able to justify
selling his products for a higher price than the competition because he believed his
spices were of higher quality. However, now the demand for individual brands of spices
has become very elastic because buyers perceive few differences among the brands.
One of Charlie’s regular customers told Charlie that another spice company offered him
a significantly lower price on spices, and he asked if Charlie could match the price.
Charlie said, “I have to see a written price quote from the competitor. If I lower my
price without seeing the price quote, I could be accused by my other customers of
engaging in ________________.”
A. dumping
B. price discrimination
C. price fixing
D. zone pricing
E. none of these is a good answer
Answer:
Mrs. Moreau was planning to have several guests at her home for a traditional
Thanksgiving dinner. She had cooked Shady Brook Farms fresh turkeys in the past and
had enjoyed them very much. When she went to her usual grocery store, she discovered
that the store no longer carried the Shady Brook Farms brand. She called several other
grocery stores and was finally able to locate Shady Brook Farms fresh turkeys at a
small specialty grocery store approximately 10 miles away. She drove to the store and
bought a 20-pound Shady Brook Farms turkey, even though the price per pound was
higher than what she normally paid at her usual grocery store. For Mrs. Moreau, the
Shady Brook Farms turkey was a(n):
A. Homogeneous shopping product.
B. Specialty product.
C. Heterogeneous shopping product.
D. Convenience product.
E. Unsought product.
Answer:
“Discrepancies of quantity” occur because
A. producers seek economies of scale.
B. most intermediaries specialize in selected product lines and buy in large enough
quantities to get a good price.
C. adding intermediaries in a channel of distribution increases the cost of getting
products to consumers.
D. consumers want the convenience of buying many different types of products at one
time.
E. all of these reasons are correct.
Answer:
Sales promotion should be targeted toward
A. wholesalers.
B. business customers.
C. final consumers.
D. retailers.
E. Any of these could be an appropriate target.
Answer:
Good media buyers know that:
A. many consumer and trade magazines serve only special-interest groups.
B. the most targeted medium is newspapers.
C. media costs generally have little relation to audience size or circulation.
D. television is superior to newspapers or radio.
E. All of these alternatives are correct.
Answer:
Drop-shippers:
A. have high operating costs because they do transporting and storing.
B. do not stock the products they sell.
C. do not take title to the products they sell.
D. do not emphasize selling.
E. do not anticipate their customers’ needs.
Answer:
Rothbart Inc. has a quality control manager, order-taking salesperson and financial
manager as part of the personnel involved in helping to improve a customer
relationship. Which of the following approaches is Rothbart using?
A. Telemarketing
B. Order getting
C. Team selling
D. Order taking
E. Merchandising
Answer:
Marketing should
A. begin with the production process.
B. make decisions about product design and packaging, prices or fees.
C. not need to coordinate with production, accounting, and financial activities.
D. provide input, but let production determine what goods and services are to be
developed.
E. focus on getting customers to make a final purchase.
Answer:
Which of the following might be sections in a marketing plan?
A. Competitor Analysis
B. Customer Analysis
C. Marketing Strategy
D. Situation Analysis
E. All of these sections could be included in a marketing plan.
Answer:
DrainClear Plumbing Supply has found that an effective salesperson should call on each
account about four times a year and spend about three hours per sales call. Every
salesperson at DrainClear works a 40-hour week and takes off two weeks for vacation
each year. A salesperson must spend one quarter of the time on travel and
administration. Approximately how many salespeople does DrainClear need to service
1000 accounts?
A. 8
B. 12
C. 2
D. 6
E. 24
Answer:
The majority of U.S. firms use a one-price policy
A. to broadcast a single price to competitors.
B. for administrative convenience.
C. to increase pricing flexibility.
D. to undercut competition.
E. to ward off competition from imports.
Answer:
Pill Makers Pharmaceuticals extensively tests all of its drugs to assure that it follows
the ____.
A. Sherman Act
B. Pure Food and Drug Act
C. Federal Trade Commission Act
D. Magnuson-Moss Act
E. Clayton Act
Answer:
A manufacturers’ agent:
A. sells noncompeting products for several manufacturers in a limited territory.
B. is often replaced by a manufacturer’s own sales force when sales rise.
C. is paid a commission on sales.
D. can be especially useful to a small manufacturer with a narrow line of new products.
E. All of these alternatives are correct for a manufacturers’ agent.
Answer:
Which of the following statements is NOT TRUE?
A. Storing is a marketing function.
B. Storing allows producers and intermediaries to keep stocks at convenient locations.
C. Storing allows the producer to achieve economies of scale in production.
D. Storing is necessary when production of goods doesn’t match consumption.
E. Storing can increase the value of goods, but does not involve costs.
Answer:
Which of the following buying methods would a purchasing manager be most likely to
use on the Internet?
A. Inspection
B. Negotiated contract
C. Purchasing specifications
D. Complex buying behavior
Answer:
Which of the following is the best example of a conventional retailer?
A. A limited-line store.
B. A department store.
C. A supermarket.
D. A convenience (food) store.
E. None of these is a good example of a conventional retailer.
Answer:
“Exclusive distribution” means selling through:
A. the most prestigious retail outlets.
B. only one wholesaler or retailer in a particular geographic area.
C. only responsible and suitable retailers or wholesalers.
D. retailers that handle specialty products.
E. only those wholesalers or retailers who will give the product special attention.
Answer:
Regarding buying by intermediaries,
A. computer-controlled inventory systems make buyers more dependent on sales reps.
B. buying committees are a way for supermarkets to handle the flood of new products.
C. buyers are seldom influenced by their salespeople.
D. wholesalers and retailers typically only carry products which they have judged
‘socially desirable.”
E. none of these alternatives is correct.
Answer: