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______________ are products a consumer needs but isn't willing to spend much time
and effort shopping for.
A. Convenience products
B. Unsought products
C. Homogeneous shopping products
D. Specialty products
E. Heterogeneous shopping products
Answer:
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.
Answer:
From a micro view, which of the following is the best example of marketing?
A. North Korea unveils a new five-year production plan.
B. China and the U.S. agree on a new trade agreement.
C. The American Red Cross seeks more blood donors.
D. The Internet makes it possible for firms to reach customers in other countries.
E. None of these is a good example.
Answer:
Primary demand is
A. the demand for the general product idea.
B. just the demand for the company's own brand.
C. the main form of mass selling.
D. any unpaid form of nonpersonal presentation of ideas, goods, or services.
E. any paid form of nonpersonal presentation of ideas, or services by an identified
sponsor.
Answer:
The text discusses the evolution of business through five "eras." Which of the following
is NOT one of these eras?
A. Simple trade era
B. Sales era
C. Facilitator era
D. Marketing department era
E. Production era
Answer:
General-line wholesalers are wholesalers that
A. carry a very narrow range of products and offer more information and service than
other service wholesalers.
B. carry a wide variety of nonperishable items.
C. operate like service wholesalers except that the customer must pay cash.
D. provide only some wholesaling functions.
E. carry a narrower line of merchandise than general merchandise wholesalers.
Answer:
A pharmaceutical company plans to introduce a new brand of pain reliever targeted at
senior citizens. The company purchases a mailing list containing the names and
addresses of elderly people who are known to take pain relievers on a regular basis to
deal with chronic ailments such as arthritis. The company then sends informational
brochures about the new product to the people on the list, along with a coupon they can
return to get a free sample. The names of the people who respond are entered into a
special database and are sent information about other products. This company is
engaged in:
A. Publicity response.
B. Personal selling.
C. Direct-response promotion.
D. Decoding response.
E. Noise interference.
Answer:
A marketing strategy specifies:
A. a marketing mix.
B. a target market and a related marketing mix.
C. a target market.
D. the resources needed to implement a marketing mix.
Answer:
Which of the following is LEAST likely to accurately describe a wholesaler of digital
recorders in the entertainment industry?
A. It maintains a tracking system to monitor product delivery.
B. It fulfills orders for electronics stores throughout the U.S.
C. It ships digital recorders to retailers by truck and air freight.
D. It sells digital recorders to final consumers over the Internet.
E. Its customers sell digital recorders to final consumers worldwide.
Answer:
The customer equity concept
A. encourages a manager to consider both the costs and the revenue from a marketing
strategy.
B. recognizes that customers are satisfied at a cost-and it is basically an estimate of a
firm's future earnings.
C. applies even to firms that pursue several different strategies.
D. focuses on earnings as well as sales.
E. All of these are part of the customer equity concept.
Answer:
An ad stressing the advantages of one brand of cookware-compared to similar (but
unnamed) competitive products-is an example of ______________ advertising.
A. institutional
B. comparative
C. pioneering
D. primary
E. competitive
Answer:
Identify the incorrect statement about market-directed economies.
A. A market-directed economy adjusts itself.
B. The American economy is completely market-directed.
C. Consumers in a market-directed economy decide what is to be produced and by
whom-through their dollar "votes."
D. Consumers in a market-directed economy enjoy great freedom of choice.
Answer:
A(n) _____ involves making small payments for a product over timeusually with
interest payments built in.
A. installment
B. rebate
C. investment
D. quantity discount
E. stocking allowance
Answer:
Use this information for question that refer to the United Tools case.
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customers-a mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each option-and the distribution service levels that can be achieved-are as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
United Tools is considering building a new private warehouse for its tools. Which of the
following are benefits of private warehouses?
A. Low unit storing cost, if volume is high.
B. Very flexible if storage needs expand or contract in the future.
C. Low fixed investment.
D. All of these are benefits of private warehouses.
Answer:
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.
Answer:
"Sales promotion":
A. can complement a firm's personal selling and mass selling efforts.
B. involves direct spoken communication between sellers and potential customers.
C. is any paid form of nonpersonal presentation of goods or services by an identified
sponsor.
D. is "free" like publicity.
E. consists of personal selling and mass selling.
Answer:
Brand managers commonly perform the following marketing functions except:
A. manage each product category, or each brand, in an organization.
B. perform promotion duties traditionally handled by the advertising manager.
C. coordinate with others, including the sales manager, advertising agencies, production
and research people, and channel members.
D. oversee new-product development.
E. conduct research and development.
Answer:
Regarding message planning:
A. a specific message usually can be used for several target markets.
B. communication may be poor if there is not a common frame of reference.
C. behavioral research shows that most consumers cannot "tune out" advertising
messages.
D. advertising is more suitable for changing behavior than attitudes.
E. All of these alternatives are correct.
Answer:
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.
Answer:
Administrators at a university noted that they were 200 students short of their
enrollment projection as the start of the school year approached. The president of the
university, fearing a revenue shortage, told the director of admissions, "You need to use
whatever means necessary to get enough students to meet the projection before classes
start. Run ads in the newspaper, call high school guidance counselors, recruit from our
pool of rejected applicants-whatever it takes." The university president is operating as
though he was in the:
A. Simple trade era.
B. Production era.
C. Sales era.
D. Marketing department era.
E. Marketing company era.
Answer:
Ideally, product-markets should be described in terms of:
A. behavioral needs, attitudes, and how present and potential goods or services fit into
customers' consumption patterns.
B. urgency to get needs satisfied and desire and willingness to compare and shop.
C. geographic location and other demographic characteristics of potential customers.
D. All of these are true.
Answer:
Electronic data interchange (EDI):
A. Puts information in a standardized format that can be shared between different
computer systems.
B. Improves information flow between buyers and suppliers.
C. Allow customers to transmit orders directly to a supplier's computer.
D. Replaces many of the paper documents previously used for purchase orders and
shipping reports.
E. All of these alternatives about EDI are correct.
Answer:
Which of the following statements about manufacturers is true?
A. Industrial customers are concentrated in countries that are at the more advanced
stages of economic development.
B. Manufacturing output in the U.S. is shrinking.
C. Countries with cheap labor have a slow rate of growth.
D. Many factories are concentrated in rural areas of the U.S.
E. Currently, U.S. manufacturing output is at its lowest point since 1980.
Answer:
Which of the following is NOT favorable to successful branding?
A. Consistent quality can be maintained.
B. Access to favorable shelf locations is very limited.
C. Economies of scale should be possible.
D. The product is easy to identify by brand or trademark.
E. Dependable and widespread availability should be possible.
Answer:
Which of the following is true of consumer behavior?
A. Specific behaviors vary a great deal for different people, products, and purchase
situations.
B. Understanding consumer behavior is a simple and a straightforward procedure.
C. Cataloging all the possibilities for consumer behavior is easy to do.
D. Psychological variables are not relevant in the consumer decision process.
E. In today's global markets, variations in specific behaviors are not very common.
Answer:
A S.W.O.T. analysis can help a marketing manager:
A. develop a competitive advantage.
B. define what business and markets the firm wants to compete in.
C. narrow down to a specific target market and marketing mix from the many
alternatives available.
D. see the pros and cons of different possible strategies.
E. all of these alternatives are correct.
Answer:
Target return pricing objectives:
A. usually are very high for firms facing heavy competition.
B. aren't used by industry leaders because they can maximize profits.
C. would never make sense for a nonprofit organization.
D. may simplify the management of large producers with many divisions or
departments.
E. All of these alternatives are correct.
Answer:
Which of the following blends all of the firm's marketing plans into one big plan?
A. Marketing program.
B. Marketing mix.
C. Marketing statement.
D. Marketing overview.
Answer:
Jim Meadowmont works for Sony. He doesn't take orders from customers, but he is
extremely knowledgeable about the entire Sony product line and about how its
specifications compare to the competition's products. He helps a regular Sony
salesperson by providing details about how Sony's products work, and knows the
customer applications for which the products are best suited. Jim is a(n):
A. order getter.
B. technical specialist.
C. missionary salesperson.
D. order taker.
E. sales manager.
Answer:
Which of the following is not a challenge related to social responsibility?
A. There is little agreement on who gets to determine what is "good" for society.
B. Actions that may seem good for society may be costly to a firm.
C. Some consumers make purchases based on the perceived societal benefits of a
product or service.
D. It is impossible to know what impact a firm's actions will have on future generations.
E. Acting to satisfy one group of stakeholders may anger another group of stakeholders.
Answer:
A straight salary
A. offers the most security for the salesperson.
B. includes some salary and some commission.
C. offers the most incentive.
D. is tied to results actually achieved.
E. is based on the specific sales or profit objective a salesperson is expected to achieve.
Answer:
A marketing manager who wants to ship small quantities (1,500 pounds) of relatively
high-value products short distances at an economical cost should use:
A. inland waterways.
B. pipelines.
C. railroads.
D. trucks.
E. airways.
Answer:
Sellers sometimes take the auction approach and adapt it by using sequential price
reductions over time. When or where is this approach most commonly used?
A. With products that have a short life
B. When the product supply is unlimited
C. With heavy equipment manufacturing machinery
D. With products that have extremely low inventory costs
E. When competition is absent
Answer:
A full-service wholesaler in Santa Fe takes title to the products it stocks-a full line of
home repair products for independent hardware stores. This wholesaler is a:
A. selling agent.
B. broker.
C. specialty wholesaler.
D. rack jobber.
E. single-line wholesaler.
Answer:
If a company plans to sell its products to a market segment consisting of "outgoing
personalities," this would NOT be a good market segment primarily because of which
of the following criteria?
A. Homogeneous within
B. Heterogeneous between
C. Generic
D. Operational
E. Substantial
Answer:
