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In the _____ step of the adoption process, a consumer begins to give the product a
mental trial by applying it to his or her personal situation.
A. interest
B. confirmation
C. trial
D. decision
E. evaluation
A target marketer who uses two different marketing mix strategies to make two separate
appeals to office tablet computer users and home tablet computer users is applying:
A. the broad market approach.
B. the single target market approach.
C. the multiple target market approach.
D. the combined target market approach.
E. the generic market approach.
The economic environment
A. of an individual country has little effect on other countries.
B. refers to the application of science to convert resources to output.
C. includes changes in interest rates and inflation.
D. has little impact on an organization's marketing strategy.
E. does not change rapidly.
A producer's price level decision is made by the market in:
A. a monopoly.
B. pure competition.
C. monopolistic competition.
D. an oligopoly.
E. None of these is a good answer.
Which dimension of buyer-seller relationships most significantly increases the risk that
proprietary knowledge or trade secrets may leak to competitors or the public?
A. Cooperation
B. Information sharing
C. Operational linkages
D. Legal bonds
E. Relationship-specific adaptations
A large firm with ample resources wants to minimize the risk of "inviting" competitors
to "chip away" at its target market(s). It has segmented its broad product-market and
identified several homogeneous submarketseach of which is large enough to offer
attractive sales and profit potential. Which of the following approaches should the firm
use?
A. Multiple target market approach
B. Mass marketing approach
C. Combined target market approach
D. Single target market approach
E. None of these approaches is correct.
Between 2000 and 2010, the highest growth rate in population in the United States
occurred in:
A. the western states.
B. the northeastern states.
C. the northwestern states.
D. the Midwestern states.
A good marketing manager knows that:
A. a fashion is the currently accepted or popular style.
B. the faster fashions change, the harder marketing strategy planning is.
C. modern technology affects the speed of fashion change.
D. a fad is even more short lived than a fashion.
E. All of these alternatives are true.
Betti Hallmark sells women's clothing and gets most of her business from regular
customers who have bought from her before. Betti never tries to sell anything before
first trying to determine each customer's specific needs. Once she understands the
customer's needs, Betti helps the customer understand her own needs and then shows
how some product will fill those needs. Betti's sales presentation uses the:
A. "canned" approach.
B. target market presentation.
C. selling formula approach.
D. consultative selling approach.
E. None of these is a good answer.
Seniors and baby boomers are among the fastest-growing demographic groups on
Facebook. Marketers need to study such trends because:
A. people in this demographic are known for being techno-savvy.
B. baby boomers typically have little money to spend.
C. very large numbers of people make up this demographic.
D. online ads are most effective when seen by people of all ages.
E. seniors have played a major role in the social media revolution.
Corporate chains:
A. can get a cost advantage over independent stores by spreading management costs to
many stores.
B. account for nearly 10 percent of retail sales.
C. usually cannot obtain economies of scale in distribution.
D. are declining in importance.
E. None of these alternatives is correct for corporate chains.
According to the US Federal Trade Commission (FTC), a firm can call its product
"new" for _____ months.
A. 1
B. 3
C. 6
D. 9
E. 12
Which of the following is a limited-function merchant wholesaler?
A. An auction company
B. A broker
C. A manufacturers' agent
D. A general-line wholesaler
E. A rack jobber
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 costto 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 $60with 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.
Clustering techniques
A. help sellers fine-tune the marketing effort with information from a detailed customer
database.
B. establish how customers think about proposed or present brands in a market.
C. try to find similar patterns within sets of data.
D. group customers into heterogeneous segments.
E. use intuition and judgment to do what previously was done by computers.
Which of the following would have the least influence on a consumer purchase of a
5-gallon waterproof sealant for wood decks and fences?
A. The purchase situation
B. Social influences
C. Economic needs
D. Psychological variables
E. Opinion leader
A good reason for developing or joining a vertical marketing system
A. is that the whole channel focuses on the same target market at the end of the channel
and seems to be more effective.
B. market competition at each level of the channel eliminates inefficient firms and
serves consumers' needs better.
C. is that no member of the channel has to bear the costs of the regrouping activities.
D. is that no member of the channel has to plan for the whole channel since good
decisions at each level run the channel.
E. All of these are good reasons for developing or joining a vertical marketing system.
When planning physical distribution, the marketing manager should:
A. set the customer service level so that every customer can get the product exactly
when he wants it.
B. minimize the cost of distribution for a given customer service level.
C. minimize the cost of transportation.
D. maximize the speed of delivery.
E. make use of a distribution center.
Regarding what a "new product" is, your text says:
A. a product should be considered "new" if it is new in any way for the company
concerned.
B. that the FTC would not call an existing product new, even if it were changed in a
functionally significant way.
C. there is no legal limit on how long a product can be called "new."
D. a new product must be totally different before it can be called a "new product."
E. All of these alternatives are correct.
A vendor is MOST likely to make a sale if the buyer has bought from the vendor before
and is doing:
A. straight rebuy buying.
B. selective buying.
C. multiple task buying.
D. modified rebuy buying.
E. new-task buying.
When purchasing consumer electronics or other high-technology products, most
consumers are aware that within a year after making a purchase, it is likely that a new
modelor an entirely new product ideawill offer more features for the same amount of
money. This phenomenon is a good example of the fact that:
A. Product life cycles are getting longer.
B. Product life cycles are getting shorter.
C. The product life cycle rarely changes in length.
Competitive advertising which makes specific brand comparisonsusing actual namesis
______________ advertising.
A. direct competitive
B. cooperative
C. comparative
D. pioneering
E. institutional
Benefits of focusing on a specific target market (with the aid of marketing
segmentation) include all the following except:
A. Marketers can fine tune their marketing mixes, thus providing superior value to
customers.
B. Marketers can build a competitive advantage by effectively meeting customers'
needs.
C. Customers will view the firm's offerings as uniquely suited to their preferences and
needs.
D. Managers can identify the best technology for improving production methods.
E. Managers will gain a clear, shared vision for how to proceed with marketing mix
decisions.
______ research accounts for about 40 percent of marketing research spending.
A. Experimental method
B. Observation method
C. Syndicated
D. Cross-tabulation
E. Online survey
Limited-line stores
A. specialize in certain lines of related products rather than a wide assortment.
B. carry anything they can sell in reasonable volume.
C. are a type of unconventional general store.
D. are larger stores that are organized into many separate departments and offer many
product lines.
E. seldom build good relationships with their customers.
An Australian wine producer, facing declining sales at home, set up a new channel of
distribution to sell wine in the United States. This seems to be an effort at
A. market development.
B. diversification.
C. market penetration.
D. product development.
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores also and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
For a new product like PlanetSavers, which of the following would you expect to be a
primary objective of the promotion that is planned?
A. Control of the message channel.
B. Increased promotional push.
C. Informing consumers.
D. Reminding ice cream shop managers and retailers.
E. Persuading consumers who otherwise wouldn't eat ice cream.
Working capital may be used to pay for:
A. advertising
B. what a firm owes suppliers
C. employee salaries
D. marketing research
E. All of these.
A producer using several competing channels to distribute its products to its target
market is using ______________ distribution.
A. multichannel
B. intensive
C. administered
D. horizontal
E. selective
Which of the following is NOT true about search on the internet?
A. The internet provides information useful to marketing managers.
B. Search directories are useful for general information about a broader topic area.
C. Search engines have access to all information on the internet.
D. Sites like Complete Planet give a listing of more than 70,000 searchable databases.
E. Search engines like Google are useful when you have a pretty clear idea about what
you are seeking.
When a large aircraft manufacturer like Boeing obtains a contract to build a new type of
jet airliner, this transaction is most likely a(n):
A. Negotiated contract buy
B. Straight rebuy
C. Modified rebuy
D. ISO 9000 buy
E. JIT buy
Regarding population growth in the world,
A. population growth in Japan and Europe is even slower than in the U.S.
B. less-developed countries generally experience the fastest growth.
C. the populations of Ethiopia and Somalia will likely increase by 50 percent or more
between 2010 and 2025 while the populations of the U.S. and Canada will grow by less
than 20 percent.
D. All of these are true regarding world population growth.
A "penetration pricing policy":
A. is the same as a "meeting competition" price-level policy.
B. is wise when demand is fairly inelasticoffering an "elite" market.
C. involves temporary price cuts to speed new products into market.
D. involves a series of step-by-step price reductions along an inelastic demand curve.
E. may be wise if a firm expects strong competition very soon after its product
introduction.
Poor communication is likely if:
A. there is no "noise" in the message channel.
B. the source and the receiver do not have a common frame of reference.
C. the encoder and the decoder are not the same person.
D. immediate feedback is not possible.
E. the source and the receiver don't have personal contact.
