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Sales promotion aimed at company's own sales force is sometimes called trade
promotion.
Answer:
Any contractual channel system-by definition-is also an administered channel system.
Answer:
Consumers use extensive problem solving when they put SOME effort into deciding
how to satisfy a need.
Answer:
A profit maximization pricing objective may lead to relatively low prices, especially if
demand is very elastic.
Answer:
The customer equity approach guides the marketing manager to make marketing
decisions that enhance the firm's short-term profitsjust for the next quarter or year.
Answer:
The pulling approach emphasizes the importance of securing the wholehearted
cooperation of channel members to promote the product in the channel and to the final
user.
Answer:
Less than 6 percent of all retail sales are made by smaller stores-those with sales of less
than $1 million a year.
Answer:
Market segmentation says that target marketers should develop one good marketing mix
aimed at a fairly large market.
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A 'substantial" market segment is one which is big enough to be profitable.
Answer:
A salesperson who completes routine sales made regularly to target customers is an
order taker.
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Comparative advertising tries to keep the product's name before the public.
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Purchasing specifications should be used only with products where quality is highly
standardized.
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A warranty must be available for inspection before a purchase is made.
Answer:
The general objective of promotion is to affect buyer behavior.
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A producer's order taker may explain details, handle complaints, and train the
customer's employees.
Answer:
Flexible pricing is most common in the channels, in direct sales of business products,
and at retail for expensive shopping products.
Answer:
Bid pricing is offering a specific price for each possible job, rather than setting a price
that applies to all potential customers.
Answer:
Multiple-buying influence means that the buyer shares the purchasing decision with
several people.
Answer:
Packaging can add value to a market offering by promoting, protecting, or enhancing
the product.
Answer:
Nationalism-or the emphasis on a country's interests before anything else-may affect the
work of some marketing managers.
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Most sales managers offer their salespeople a "combination plan" because this method
of compensation provides a balance between incentive and security.
Answer:
A marketing strategy and all the time-related details for carrying out the strategy is a
"marketing plan."
Answer:
Indirect competitive advertising aims for immediate buying action while direct
competitive advertising aims for future buying action.
Answer:
Demand-backward pricing is commonly used by producers of consumer products,
especially shopping products such as women's clothing and appliances.
Answer:
The reaction of Italian women to Swiffer is an example of cultural influence.
Answer:
L.L. Bean has achieved success because its customers typically view the benefits of
buying its products as greater than the costs.
Answer:
The product life cycle is the four stages a new product idea goes through from
beginning to end.
Answer:
Achieving effective marketing in an advanced economy is simplified by the fact that
producers are separated from consumers in only two ways: time and space.
Answer:
At zero output, total variable cost is zero.
Answer:
The micro-macro dilemma occurs when a firm focuses its efforts on satisfying some
consumers to achieve its objectives, possibly causing negative societal outcomes.
Answer:
The vast majority of advertising agencies are small, with 10 or fewer employees.
Answer:
African Americans have the highest median family income of the major ethnic groups.
Answer:
If a trademark is to be used in foreign markets, it is wise to register it under the Lanham
Act.
Answer:
Providing effective customer service is relatively simple-because it is usually clearer
how to repair a negative experience than it is to provide an initial purchase experience
that is satisfying to the customer.
Answer:
Wholesalers are adapting their marketing strategies and changes are under way even
though they may be invisible to consumers.
Answer:
Retail sales on the Internet grew very rapidly at first, but now are expected to grow
slowly.
Answer:
The terms "direct marketing" and "direct distribution" mean the same thing.
Answer:
Most Internet ads seek a delayed response.
Answer:
Which of the following is probably NOT a part of a situation analysis?
A. A marketing manager asks a radio station for a copy of an audience study.
B. A marketing analyst determines from a Census publication how many manufacturers
are in the Portland area.
C. A marketing analyst looks in the Index of Business Periodicals for articles about a
large retail chain.
D. A computer company asks ten lawyers to participate in a focus group on how they
use the internet.
E. All of these alternatives seem to be part of a situation analysis.
Answer:
_____ are the prices final customers or users are normally asked to pay for products.
A. Basic list prices
B. Discounts
C. Cost prices
D. Net prices
E. Payoffs
Answer:
Some marketing managers have set up relationships with Internet companies whose ads
invite customers to 'set your own price." Such marketing managers
A. have given up on administering prices.
B. are carefully administering a flexible price.
C. are following a one-price policy.
D. make it easier for competition to undercut them.
E. are following a penetration pricing policy.
Answer:
Regarding advertising and the AIDA model, which of the following is the best example
of advertising aimed at obtaining action?
A. A TV ad at 10:00 PM for the luncheon buffet at a local restaurant.
B. A car at an auto junk yard-with the operating hours painted on the side.
C. An ad for a restaurant in the Yellow Pages.
D. A classified ad in a newspaper with the word "SEX" in bold print and then the name
and telephone number of a dry cleaner.
E. None of these is a good example of advertising aimed at obtaining action.
Answer:
Procter and Gamble buys unprocessed logs which are handled as little as needed to
move them to its plant. Eventually, they become part of P and G's disposable diapers
and are considered an expense item on P and G's income statement. For P and G, logs
are:
A. farm products
B. supplies
C. component parts
D. component materials
E. raw materials
Answer:
ProEdge Tech, a leading technology firm, has bluntly stated its pricing objective as:
"Charge all the traffic will bear." This is an example of a
A. profit maximization objective.
B. unit sales growth objective.
C. growth in market share objective.
D. target return objective.
E. nonprice competition objective.
Answer:
_____ refers to how we gather and interpret information from the world around us.
A. Retention
B. Perception
C. Attitude
D. Learning
E. Lifestyle analysis
Answer:
Percy Malik, purchasing agent for Black Mountain Chemical Industries, routinely signs
purchase orders for office supplies without further consideration. At Black Mountain,
purchases of office supplies are
A. a modified rebuy.
B. a necessity.
C. Somewhat Insignificant Commodity (SIC) items.
D. a selective rebuy.
E. a straight rebuy.
Answer:
Legal concerns about channel of distribution arrangements are most likely to arise
when:
A. a traditional channel system is involved.
B. there are horizontal arrangements between firms at the same level of the channel.
C. the firm is using intensive distribution.
D. a firm uses multichannel distribution to reach its target markets.
E. a corporate channel system is involved.
Answer:
Purchasing managers rely on Internet ______________ ______________ to quickly
identify new supplies.
A. Procurement engines
B. Online communities
C. Purchasing sites
D. Search engines
Answer:
Which of the following statements about operational linkages is FALSE?
A. Just-in-time is an example of an operational linkage.
B. Operational linkages are direct ties between the internal operations of the buyer and
seller firms.
C. Operational linkages involve only occasional coordination of activities between
buying and selling firms.
D. None of these statements about operational linkages is FALSE.
Answer:
Some retailers commonly use prices that end in certain numbers. They seem to assume
that their customers see prices with these numbers as substantially lower. This is:
A. odd-even pricing.
B. demand-backward pricing.
C. leader pricing.
D. prestige pricing.
E. psychological pricing.
Answer:
Use the following information to answer question that refer to the Jewel Craft case.
Jewel Craft, Inc. is a leading producer in the United States' women's costume jewelry
and accessories market. Its brands are well known and are sold by department stores
and better women's stores. Several stores in a city may carry Jewel Craft's brands
because most of Jewel Craft's customers will not consider any other brand.
Jewel Craft's sales force calls on one wholesaler in each state. Gemco, Inc., of Boston,
Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells
women's accessories (noncompeting lines) for several manufacturers like Jewel Craft.
Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight
charges to their warehouses. Jewel Craft's policy of using one wholesaler per state
comes from its desire to control its distribution. Jewel Craft uses national magazine
advertising and also supports a cooperative ad program with retailers.
Jewel Craft's prices allow for a 40 percent retail markup-an attractive percent when one
considers that Jewel Craft's products require little in-store selling because of their
well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding
to watches under the Jewel Craft name. It was argued that although national watch sales
have leveled off, Jewel Craft could enjoy growing sales for several years because of the
fine reputation the company has achieved. If watches are added, Jewel Craft will use its
present policies regarding distribution, pricing, and advertising. Further, it will offer the
wholesalers and retailers an attractive "package" deal as an incentive to carry Jewel
Craft watches. Intermediaries will be required to carry the watches if they wish to
handle the jewelry and accessories.
Jewel Craft's distribution policy-at the retail level-seems to be:
A. direct distribution.
B. exclusive distribution.
C. intensive distribution.
D. selective distribution.
Answer:
Which of the following types of firms are collaborators?
A. Marketing research firms
B. Overnight delivery firms
C. Advertising agencies
D. Product-testing labs
E. All of these are collaborators.
Answer:
The web and social media:
A. are unlikely to affect consumer awareness of wants and needs.
B. expose consumers to many goods and services.
C. are drastically replacing opinion leaders.
D. lead to poor buying decisions.
E. have little impact on consumer decision making.
Answer:
U.S. Census data show that:
A. retailers are more numerous than manufacturers and wholesalers combined.
B. only about 15 percent of all retailers have annual sales over $5 million.
C. over half of all retailers have annual sales less than $1 million.
D. there are over 1 million retailers.
E. all of these alternatives are correct.
Answer:
A salesperson who earns the same gross pay each month is in what type of
compensation program?
A. Selling formula plan
B. Straight salary
C. Combination plan
D. Sales quota
E. Straight commission
Answer:
Which of the following is NOT a business raw material?
A. Coal.
B. Grease.
C. Sugar cane.
D. Iron ore.
E. Logs.
Answer:
Whenever John shops for groceries, he gives an ID card to the clerk, who scans the
number. Then the scanner records every purchase-including brands, sizes, prices, and
any coupons used. John is most probably a
A. licensed purchaser.
B. consumer panel member.
C. market researcher.
D. focus group leader.
E. opinion leader.
Answer:
Which of the following is NOT one of the levels of consumer problem solving
discussed in the text?
A. Dissonance problem solving
B. Routinized response behavior
C. Extensive problem solving
D. Limited problem solving
E. None of these, i.e. all four are discussed.
Answer:
An expectation is
A. an event that a person likes to remember.
B. a positive cue.
C. an unfulfilled need.
D. an outcome that a person looks forward to.
E. none of these alternatives is correct.
Answer:
Ford Motor Co. "loaned" new Fiestas to social trendsetters who drove the cars as part of
their Meals on Wheels responsibilities. When Ford asked them to write about their
driving experiences on Facebook and Twitter, it was emphasizing which aspect of the
4Ps?
A. Product
B. Place
C. Price
D. Promotion
Answer:
It is toward the end of the _____ stage of the product life cycle when industry profits
begin to decline.
A. market maturity
B. market introduction
C. market growth
D. sales decline
E. market decline
Answer:
Which of the following is an example of a cost-oriented price setting approach?
A. Negotiated prices
B. Price sensitivity
C. Value in use pricing
D. Markup pricing
E. Reference prices
Answer:
An elite fashion manufacturer distributes apparel products in retail outlets worldwide.
The company chooses to forego coordinating physical distribution functions with other
firms in the distribution channel. Which of the following is most likely to occur as a
result?
A. A competitive advantage for the manufacturing firm
B. Lower product delivery costs
C. Greater harmony across the supply chain
D. Significant gains in global market share
E. Discord concerning issues of physical distribution
Answer:
A full-service wholesaler in Madrid takes title to the "oriental foods" she sells to
supermarkets, gourmet shops, and restaurants. This wholesaler is a:
A. manufacturers' agent.
B. specialty wholesaler.
C. selling agent.
D. single-line wholesaler.
E. general merchandise wholesaler.
Answer:
When Nintendo sets a relatively low price on its game units to stimulate more demand
for its game cartridges, it is using
A. complementary product pricing.
B. product-bundle pricing.
C. price lining.
D. bait pricing.
E. cost plus pricing.
Answer:
About what percentage of GDP do the developed economies in the U.S. and Europe
spend on logistics-related costs?
A. 1-2 percent
B. 5-7 percent
C. 9-15 percent
D. 20-25 percent
E. 30-35 percent
Answer:
According to the text, which of the following is NOT a product?
A. space in Playboy Magazine sold to an advertiser
B. a Sony PlayStation III
C. a Broadway musical play
D. the San Diego Zoo
E. All of these choices are products.
Answer:
Compared to more conventional retailers, which of the following retailers offer both
expanded assortment and service?
A. Mass-merchandisers
B. Door-to-door salespeople
C. Direct-mail retailers
D. Specialty shops
E. Supermarkets
Answer:
A common "product-market commitment" in a channel system helps to eliminate:
A. the need for a channel captain.
B. unnecessary and costly duplication of marketing functions.
C. all production-oriented channel members.
D. competition among different channel systems.
E. the need for marketing managers in individual firms.
Answer:
Which of the following give a producer a way to be certain that final consumers
actually get the price reduction?
A. Rebates
B. Push money allowances
C. Spiffs
D. Trade-in allowance
E. Noncumulative quantity discount
Answer:
Which of the following statements concerning social class is FALSE?
A. Income by itself is usually a good measure of social class.
B. In most countries, social class is closely related to a person's occupation.
C. In most countries, there is a general relationship between income level and social
class.
D. Almost every society has some social class structure.
E. The U.S. class system is far less rigid than those in most countries.
Answer:
Which of the following is an "economic need"?
A. Desire for self-satisfaction and convenience.
B. Desire for efficiency in the use of the consumer's money.
C. Desire for efficiency in the use of the consumer's time and money.
D. Desire for prestige and paying a high price for the best quality.
E. Desire for status and paying a high price for the best quality.
Answer:
