In a recent Nielsen online survey of over 25,000 Internet consumers from 50 countries,
only 25 percent of respondents said they trusted online consumer opinions as an
information source.
Procurement sites operate for the benefit of buyers by directing suppliers to them at one
convenient site.
Transport costs represent a significant part of the cost of products that are already
valuable relative to their size and weight.
In both a supply chain and a channel of distribution, the primary aim should be to create
maximum value for the customer.
When introducing a really new product, the marketer should be concerned about
building channels of distribution, but not about promotion.
Though it is common in the U.S. to use cartoon characters in advertising to children,
both Japan and France limit that practice, and Canada bans any advertising targeted
directly at children.
Sales-oriented pricing objectives are sensible because sales growth almost guarantees
higher profits.
Developing integrated marketing communications is more difficult when different firms
in the channel handle different aspects of the promotion effort.
In customer-initiated communication, it is common for the customer to initiate
communication with a search process.
In Argentina, Israel, and Singapore, for example, less than 20 percent of people live in
urban areas.
Compared to intensive distribution, selective distribution gives a producer a greater
opportunity for profit but usually makes it more difficult for intermediaries to make a
profit.
The ‘selling formula” approach to making a sales presentation is really a combination of
the “prepared sales presentation” approach and the “consultative selling” approach.
Because NAFTA is a short-term proposition, its economic impact has already been as
significant as it is likely to be.
A major difference between leader pricing and bait pricing is that bait pricing is
criticized as unethical while leader pricing is not.
Transporting choices in developing countries are usually fewer in number, but cost
more.
Most economists assume that consumers are “economic buyers” who logically evaluate
choices to get the greatest satisfaction from spending their time and money.
A drive is a strong stimulus that encourages action to reduce a need.
Specialty shops will continue to be a part of the retailing scene as long as customers
have varied tastes and the money to satisfy them.
Today, discount houses are found in low-rent facilities, have poor images with
customers, and offer few services and no guarantees.
Many people think that it is unethical to spy on competitors to obtain their trade secrets,
but it is perfectly legal.
A company with a profitable strategy has its own internal source of funds.
When the total market is not growing a common strategy adopted is to stabilize prices.
A fad cycle is shorter than a fashion cycle.
Regional groupings of nations outside the United States have little effect on the
decisions of marketing managers whose firms are headquartered in the U.S.
Psychographics is the analysis of a person’s day-to-day pattern of living as expressed in
that person’s Activities, Interests, and Opinions.
Public warehouses (compared to private warehouses) provide greater economy and
flexibility when a firm does not have a regular need to store a large volume of goods,
but they provide fewer services than a firm’s own warehouse could.
In total, firms spend less money on advertising than on personal selling or sales
promotion.
The elimination of separate barriers to inter-European trade is making Europe a large
unified market.
An opinion leader is usually wealthier and better educated than the people he or she
influences.
Compared to other innovations, firms have been relatively slow to adopt e-commerce.
In the “Borden case,” the U.S. Supreme Court ruled that a well-known label alone
makes a product different from a physically similar product with an unknown label.
The letters in “S.W.O.T. analysis” are an abbreviation for the first letters of the words
‘strengths, weaknesses, opportunities and threats.”
Computer-aided segmenting approaches eliminate the need for managerial judgment
and intuition in selecting segmenting dimensions.
In selective exposure we screen out or modify ideas, messages, and information that
conflict with previously learned attitudes and beliefs.
Many types of retailers are now establishing a presence on the Internet.
Marketing cost analysis usually requires a new way of classifying accounting data.
Piggyback service means
A. loading truck trailers on railcars to increase flexibility.
B. linking truck trailers to save fuel.
C. providing door-to-door service in cities.
D. special handling of important farm equipment.
E. combining small shipments of many shippers into more economical quantities.
A tire manufacturer currently produces tires in small quantities as they are ordered. The
company learns that it can reduce costs significantly by producing one type of tire at a
time in large quantities and storing its unsold tires for later sale. Should the company
switch to large quantity production?
A. No, because this will prevent the company from providing tires as they are ordered.
B. No, because this will cause the company to incur unexpected transportation costs.
C. Only if the economies of scale in production are greater than the additional inventory
carrying cost.
D. Yes, because this will allow the company to utilize JIT delivery systems.
E. Yes, because this will enable the company to improve its production speed per tire.
Which of the following statements about the “universal functions of marketing” is
False?
A. These functions do not have to be performed in all macro-marketing systems.
B. How the functions are performed may differ among nations and economic systems.
C. Who performs the functions may differ among nations and economic systems.
D. These functions help to overcome discrepancies of quantity and assortment.
E. None of these statements is False.
Which country bans any advertising targeted directly at children?
A. USA
B. Canada
C. New Zealand
D. Japan
E. India
Jackson Motors, Inc. normally sells its electric motors to all buyers for $100. However,
a competitor offered to sell similar motors to one of Jackson Motors’ biggest customers
for only $80 and Jackson Motors offered that customerbut not its other customersa $80
selling price. According to the Robinson-Patman Act:
A. Jackson Motors has not violated the lawit is just meeting competition.
B. Jackson Motors is breaking the lawunless it offers to sell motors to all of its
customers for $80.
C. Jackson Motors cannot lower its $100 selling price.
D. Jackson Motors cannot use the “meeting competition in good faith” defense unless it
beats its competitor’s $80 selling price.
E. Jackson Motors AND its competitor are both guilty of price fixing.
Nonrecognition of the brand name of a firm’s product is likely to be LEAST important
for:
A. Coal
B. Photographic film
C. Lubricating oils for machinery
D. Cold tablets
E. Replacement auto repair parts
Which of the following would be most helpful for predicting why a final consumer
selects one of several similar brands?
A. population data
B. consumer spending patterns
C. behavioral science theories
D. consumer income
E. all would be equally helpful
The managerial process of developing and maintaining a match between the resources
of an organization and its market opportunities is called:
A. management by objective.
B. marketing programming.
C. marketing strategy planning.
D. strategic (management) planning.
E. market planning.
Which of the following publicity tools would a software company most likely use in
order to target commercial press?
A. Customer reviews
B. Case studies
C. Blogs
D. Podcasts
E. Online media room
A basic difference between a “generic market” and a “product-market” is:
A. whether or not sellers in the market rely on e-commerce.
B. how similar the competing sellers’ products are.
C. whether customer needs are similar or different.
D. whether the market includes only buyersor both buyers and sellers.
E. There is NO DIFFERENCEthe terms mean the same thing.
Which of the following statements about direct-to-customer channels is False?
A. Most consumer products are sold via direct-to-customer channels.
B. Producers must sometimes use direct-to-customer channels because suitable
intermediaries are not available.
C. Many business products are sold via direct-to-customer channels.
D. Service firms often use direct-to-customer channels.
E. “Direct marketing” does not mean that a firm uses direct-to-customer channels.
Saying that a good market segment should be “heterogeneous between” means:
A. That the consumers in a market segment should be as similar as possible with respect
to their likely responses to marketing mix variables and their segmenting dimensions.
B. That the consumers in a market segment should be as different as possible with
respect to their likely responses to marketing mix variables and their segmenting
dimensions.
C. That the consumers in different segments should be as similar as possible with
respect to their likely responses to marketing mix variables and their segmenting
dimensions.
D. That the consumers in different segments should be as different as possible with
respect to their likely responses to marketing mix variables and their segmenting
dimensions.
E. That the segmenting dimensions should be useful for identifying different customers
and deciding on marketing mix variables.
A divorced dad commuting to work on a major highway notices a billboard for
McDonald’s any-size $1 soft drink. This billboard is an example of a(n):
A. reinforcement.
B. response.
C. drive.
D. cue.
E. attitude.
____ refers to the total market value of all goods and services provided in a country’s
economy in a year by both residents and nonresidents of that country.
A. Gross output
B. Gross investment
C. Gross national income
D. Gross fixed capital formation
E. Gross domestic product
Services
A. are tangible.
B. often have to be produced in the presence of the customer.
C. are easy to store.
D. are usually produced before they are sold.
E. All of these choices are correct.
Which of the following is TRUE about the micro-macro dilemma?
A. What is good for some producers and consumers may not be good for society as a
whole.
B. Marketing people cannot agree on whether marketing should be viewed as individual
activities or a social process.
C. In a multiproduct company, one product should not be emphasized over another.
D. Most people don’t want much freedom of choice.
E. Intermediaries facilitate exchange but they add to the cost of goods.
In which of the following situations is the new product entering the market introduction
stage of the product life cycle?
A. Porsche just introduced a new luxury sport-ute to compete against sport-utes made
by others.
B. Colgate-Palmolive just introduced a “new and improved” chemical formula for its
“Total” toothpaste.
C. Home Depot (a home improvement chain) just introduced its own dealer brand of
paint.
D. Apple just introduced a computer operating system that is so “user-friendly” it
responds to spoken commands.
E. All of these situations show a new product entering the market introduction stage of
the product life cycle.
Because of long-run effects, decisions about one of the four Ps are often harder to
change than the others. This P is:
A. Product.
B. Place.
C. Promotion.
D. Price.
What is the likely level of involvement in a purchase decision for a new couch?
A. Extensive.
B. Limited.
C. Low.
D. Moderate.
E. Routine.
Which of the following statements about Place is true?
A. Most consumer products and most business products are sold to intermediaries who
then sell them to final customers.
B. Place decisions are usually harder to change than other marketing mix decisions.
C. There is always one Place arrangement that is “best” for a product.
D. A series of individuals who aid in the flow of goods and services from producer to
final customer is called a distribution network.
E. None of these statements about Place is true.
Rack jobbers
A. specialize in hard-to-handle assortments of products that a retailer does not want to
manage.
B. own the products they sell but they do not actually handle, stock, or deliver them.
C. promptly deliver perishable products that regular wholesalers prefer not to carry.
D. sell out of catalogs that may be distributed widely to smaller industrial customers or
retailers.
E. are basically manufacturers’ agents who specialize in international trade.
Denise Hunter had Thomasville brand living room furniture and wanted to buy a
particular chair of the same brand. She made a few calls to find a store that had the
chair in stock. When she found one, she went there and purchased the chair. For Denise,
the chair was
A. a homogeneous shopping product.
B. a specialty product.
C. an impulse product.
D. a heterogeneous shopping product.
E. an emergency product.
Nantucket Hammocks, Inc. uses dealer incentives, discounts, and sales contests in order
to encourage retailers to give special attention to selling its products. Nantucket
Hammocks is using
A. exclusive distribution.
B. a corporate channel system.
C. dual distribution.
D. an administered channel system.
E. pushing.
Horizontal arrangements among competing retailers, wholesalers, or producers to limit
sales by customer or territory have consistently been
A. shown to increase competition.
B. a regular practice in the U.S.
C. encouraged in the U.S. but not in many international markets.
D. a successful strategy for entering international markets.
E. ruled illegal by the U.S. Supreme Court.
The _____ type of competitive advertising points out product advantages to affect
future buying decisions.
A. direct
B. interactive
C. indirect
D. strategic
E. phonetic
Predicting what types of bicycles different customers will want and deciding which of
these customers the business will try to satisfy are activities a firm should do as part of
A. production.
B. a command economy.
C. marketing.
D. making goods or performing services.
E. a production orientation.
The _____ area of the marketing mix includes decisions related to telling the target
market or others in the channel of distribution about the “right” product.
A. product
B. place
C. promotion
D. price
E. communication
A _____ is a relatively homogeneous group of customers who will respond to a
marketing mix in a similar way.
A. market segment
B. market grid
C. consumer network
D. market network
E. generic market
Which of the following statements concerning physical distribution trade-offs is NOT
true?
A. The trade-offs that must be made in the physical distribution area can be
complicated.
B. The lowest-cost approach may not be the best as customer service level varies from
one market to the other.
C. Many firms are trying to address trade-off complications with e-commerce.
D. Most physical distribution decisions involve trade-offs between costs, customer
service level, and sales.
E. An efficient physical distribution system does not have to make trade-offs for
customers.
A _____ is a market with very similar needs and sellers offering various close substitute
ways of satisfying those needs.
A. generic market
B. standard market
C. target market
D. global market
E. product-market
Advertising spending as a percent of sales dollars is largest for:
A. toys.
B. business services.
C. computers.
D. motor vehicles.
E. malt beverages.
As a firm’s product moves along the product life cycle, marketing managers can expect
all of the following to occur except:
A. customers’ attitudes and needs may change.
B. the firm’s marketing mix must change.
C. the competitive environment shifts toward pure competition or oligopoly.
D. industry profits increase until total product sales finally reach their decline.
E. total product sales reach the peak at the market maturity stage.
Which of the following is an unethical behavior on the part of a consumer?
A. abusing policies about returning goods.
B. changing price tags in self-service stores.
C. being abusive to salespeople.
D. shoplifting.
E. all of these are examples of unethical behavior.