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Most firms avoid administered prices because they may be illegal under the
Robinson-Patman Act.
Prestige pricing involves setting a rather high price because the product has a normal
down-sloping demand curve.
Application of the product life cycle concept to retailing suggests that all types of
retailers are in early market growth due to continually increasing family income.
The Internet is an important aspect of the technological environment, but it isn't very
useful for getting information about competitors.
Firms often hire new salespeople and immediately send them out on the road.
Auction companies are used for products where demand and supply conditions change
rapidly.
Trust is the confidence a person has in the promises or actions of another person, brand,
or company.
Institutional advertising may try to inform, persuade, or remind, but it usually focuses
on the name and prestige of an organization or industry.
Introductory price dealing involves setting high initial prices on a product when it is
introducedto see how much consumers are willing to pay.
In the example for the 7-step approach (discussed in the text), the "long-stay guests"
and the "event-centered visitors" should be combined because both groups will likely be
at the motel for an extended period of time.
Sysco is a good example of a company that uses technology to make its distribution
centers more efficient.
The FTC places no restriction on the length of time a product can be called "new."
A marketing manager who sets prices to achieve a given level of market share is using a
profit-oriented pricing objective.
Export or import agents are basically merchant wholesalers who specialize in
international trade.
Deciding on the right promotion blend should be the job of the advertising manager.
Many companies look to the developing world for breakthrough new products that meet
global consumer needs at low cost.
Excess capacity can be a safety net if demand suddenly picks up.
Consumer products that are linked to cultural variables tend to be lower risk when
entering international markets.
A job description is a written statement of what a salesperson is expected to do.
The approaches used to serve business customers in international markets are even
more varied than those required to reach individual consumers.
There are over 310 million people living in the United States.
The least risky--but most challenging--marketing opportunities are diversification
opportunities.
Customer value is the difference that a customer sees between the benefits of a firm's
offering and the costs of obtaining those benefits.
The task method of budgeting bases the budget on the job to be done now, not on what
was spent in the past.
The marketing mix should be set before the best target market is selected.
Most changes in the cultural and social environment come slowly.
The "iceberg principle" says that looking at detailed breakdowns of data is not very
useful, since most relevant information is revealed in good summaries.
White papers, case studies, blogs, and videos are all ways for a seller's website to
provide a buyer with useful content.
The term 'supply chain" can be misleading because the chain typically involves only
two firms: a vendor (selling firm) and a customer (buying firm).
Firms can manipulate consumers to buy anything the company chooses to produce.
Each sales manager and salesperson needs to think about the AIDA sequence in
deciding what sales approach to use and in evaluating a possible presentation.
When deciding how many salespeople are needed, the first step is to determine how
many sales reps are used by competing companies.
Which of the following would NOT be an example of sales promotion?
A. A flyer placed on a homeowner's door announcing a new lawn service.
B. A coupon offering a "buy one, get one free" deal at a pizza restaurant.
C. A free sample of a new breakfast cereal mailed to consumers.
D. A special display of snack chips placed in a grocery store's main aisle.
E. A contest in which a fast-food chain distributes 'scratch-off" game pieces to promote
a new movie.
Which of the following is LEAST LIKELY to be found in a production-oriented firm?
A. Disagreements among departments about how to improve the company's product.
B. Making products that are easy to produce.
C. Producing goods that exactly meet the customer's needs.
D. A mass marketing approach.
E. None of these is likely to be found in a production-oriented firm.
Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that
had been handling its distribution in Canada. This is an example of:
A. dual distribution.
B. reverse distribution.
C. a contractual channel system.
D. vertical integration.
E. accumulating.
In which of the following places would logistics costs be most likely to run between 9
and 15 percent of GDP?
A. Uganda
B. Brazil
C. United Kingdom
D. Zimbabwe
E. Argentina
A manufacturer prefers to produce and ship in large quantities to take advantage of
economies of scale. Final consumers often want to purchase in small quantities. This
difference between the producer and consumer is a:
A. Discrepancy of assortment.
B. Discrepancy of quantity.
C. Regrouping activity.
D. Discrepancy adjustment.
E. Marketing discrepancy.
A marketing plan should be developed for a:
A. five-year period.
B. year.
C. quarter.
D. month.
E. Any of thesedepending on the situation.
When using screening criteria to evaluate opportunities:
A. Marketers must try to match opportunities to the firm's resources and objectives.
B. Quantitative but not qualitative criteria should be considered.
C. Opportunities that are not expected to be profitable after one year of implementation
should always be dropped.
D. The firm's weaknesses should be ignored.
E. All of these are correct.
Concerning the product life cycle:
A. profits and sales begin to decline in the maturity stage.
B. individual products may enter and leave the market at any stage.
C. a successful introduction almost guarantees that the product will remain a success
over the life cycle.
D. phasing out a dying product is not a strategy.
E. None of these alternatives is true.
Personal selling lets the salesperson adapt the firm's marketing mix to a specific
customer. This is an aspect of which marketing mix variable?
A. Price
B. Place
C. Promotion
D. Product
Each of the following statements regarding online promotional communications is true
EXCEPT:
A. Marketing managers need not focus on online information they don't create.
B. Online complaints can serve the purpose of highlighting unmet customer needs.
C. Marketing managers need to know where customers are likely to search for
information and monitor what is being said there.
D. Customers often make purchases based on information that was not influenced by
the product's marketing manager.
E. Customers who search online often find messages outside the marketer's control.
Regarding our MACRO-marketing system, advertising:
A. creates jobs and raises personal incomes.
B. may lower final consumer prices if it results in economies of scale.
C. encourages innovation.
D. stimulates investment and generates economic growth.
E. All of these alternatives are correct.
Which of the following types of retailers has not yet reached market maturity?
A. Supercenters
B. Internet merchants
C. Variety stores
D. Department stores
E. Catalog showrooms
A virtual corporation:
A. acts primarily as a coordinator.
B. has no need for suppliers because it produces everything it needs or sells.
C. does none of its production "in house".
D. All of these.
E. Acts primarily as a coordinator and does none of its production "in house" only.
Services, as opposed to physical products:
A. May be stored for later use.
B. Are usually sold first, and then produced.
C. Are usually produced and consumed in different time frames.
D. Never require the presence of the consumer in order to be performed.
E. None of these alternatives is correct.
In promotion to intermediaries:
A. personal selling is the dominant promotion method.
B. trade ads are used to inform intermediaries about new offerings.
C. promotion must be both informative and persuasive.
D. sales promotions are used to boost the intermediary's profits on a short-term basis.
E. All of these alternatives are correct.
Ginny Paulson was just promoted to marketing manager for her company. She also gets
a big raise with the promotion. Because Ginny's discretionary income will increase,
which of the following products is MOST likely to benefit?
A. Furnace repairs.
B. Automobile insurance.
C. A CD stereo system.
D. Medical services.
E. Grocery staples.
Producers and wholesalers that target business customers typically emphasize
A. publicity.
B. mass selling.
C. personal selling.
D. advertising.
E. sales promotions.
A channel system in which the various members informally agree to cooperate with
each other is called a(an) ______________ system.
A. contractual channel
B. dual distribution
C. traditional channel
D. administered channel
E. franchising
In advanced economies:
A. mass production with its economies of scale makes the cost of each product higher.
B. exchange is simplified by discrepancies of quantity and assortment.
C. there is little need for marketing specialists.
D. both supply and demand tend to be homogeneous in nature.
E. producers and consumers experience a separation of values.
Gun control is an example of a micro-macro dilemma.
Average-cost pricing:
A. May be very profitable if actual sales are higher than expected.
B. May lose money for the firm if actual sales are less than expected.
C. Does not take demand into account in setting prices.
D. Is simple in theory but often fails in practice.
E. All of these alternatives are correct.
Ceramics Distributing Co. wants to keep its inventory low. Which of the following
would be LEAST likely to encourage customers to take over more responsibility for the
storage function?
A. offering a cumulative quantity discount
B. offering a stocking allowance
C. offering a noncumulative quantity discount
D. offering a seasonal discount
Which of the following is a business or organizational customer, as opposed to an
individual final consumer?
A. A wholesaler purchasing merchandise for resale.
B. A business executive who purchases a new suit.
C. A teacher who fills her car with gasoline.
D. A homeowner who buys flowers at a garden center.
E. None of these is a business or organizational customer.
Which of the following statements about pioneers and followers is false?
A. A pioneer is the first to market with a new product idea.
B. On average, pioneers are usually more profitable than followers.
C. Second movers typically have a strong customer-focus.
D. Second movers that respond quickly build market share in the market growth stage.
E. None of these choices is false.
A complete product-market definition includes a four-part description comprising all of
the following except
A. geographic area.
B. customer needs.
C. customer types.
D. product type.
E. marketing mix.
Adoption of the marketing concept
A. is easy for most firms.
B. occurred first in the service industry.
C. has been universal.
D. has been slow for producers of industrial commodities.
E. happened last among consumer product companies.
Advertising which tries to develop selective demand for a specific brand rather than a
product category is called ______________ advertising.
A. institutional
B. competitive
C. indirect reminder
D. direct pioneering
E. primary
For which of the following goods would air be the least useful mode of transportation?
A. High-fashion clothing.
B. Oil.
C. Flower and bulbs from Holland.
D. Emergency delivery of repair parts.
E. Parts for the electronic industry.
A producer incurred costs of $54,000 for labor and materials and $26,000 for fixed
overhead expenses in a year. The firm produced 20,000 units during the year. If the
producer desires a profit of $1 per unit in the coming year, what should the producer's
selling price be using average-cost pricing?
A. $3.70.
B. $2.30.
C. $5.00.
D. $6.00.
E. Cannot be determined from the information provided.
"Positioning":
A. applies to new productsbut not existing products.
B. helps strategy planners see how customers view competitors' offerings.
C. is concerned with obtaining the best shelf space in retail outlets.
D. is useful for combining but not for segmenting.
E. eliminates the need for judgment in strategy planning.
Fly-Right Travel Agency arranges vacation packages to Disney World in Florida. The
price includes airfare, a rental car, deluxe accommodations, and tickets to Disney World
and other attractions. Fly-Right is using:
A. Product-bundle pricing.
B. Complementary product pricing.
C. Full-line pricing.
D. Bid pricing.
E. Demand-backward pricing.
Organizational buyers:
A. rely on many sources of information in addition to salespeople when making
purchase decisions.
B. may use vendor analysis to make certain that all relevant areas of a purchase
decision have been considered.
C. are likely to do little search for additional information if the purchase is unimportant.
D. tend to be more rationaland less emotionalin their buying decisions than final
consumers.
E. All of these alternatives about organizational buyers are true.
