Costco believes that most of its sales are to small businesses rather than consumers, and
that women are more likely to be making the purchasing decisions. This is an example
of a(n) ______that Costco could test through marketing research.
a. descriptive sample
b. hypothesis
c. experimental question
d. sampling error
e. conceptual error
If the push policy is used in promoting a product, the firm:
a. promotes directly to consumers, wholesalers and retailers.
b. promotes only to the next marketing institution down the marketing channel.
c. Intends to pull the goods down through the channel by creating demand at the
consumer level.
d. will focus on persuading consumers to seek its products in retail stores.
e. will develop strong consumer demand for its products.
If Walmart plans to expand its stores to Canada and Mexico. This expansion would be
facilitated by the .
a. European Union
b. North American Free Trade Agreement
c. Pacific Rim Unification Act
d. International Retail Alliance Association
e. Latin American Free Trade Association
Product support services are important mainly when a company wants to differentiate
its products from other products in a market that essentially have the same quality,
design, and features.
a. True
b. False
Jack knows his business has a problem because of an increasing number of consumer
complaints received recently.
He has decided how to make this problem a precise, researchable statement and should
move on to:
a. calculating reliability and validity.
b. designing the research project.
c. collecting data.
d. interpreting research findings.
e. taking corrective action.
In recent years, the proportion of promotional dollars spent on sales promotion has:
a. increased relative to advertising.
b. remained constant.
c. declined slightly, and the proportion spent on advertising has increased.
d. declined slightly, and the proportion spent on advertising has declined as well.
e. increased, and the proportion spent on advertising has increased as well.
Price leaders, comparison discounting, and special-event pricing are examples of:
a. psychological pricing.
b. professional pricing.
c. product-line pricing.
d. premium pricing
e. promotional pricing.
A segmentation variable is used to group smaller markets into one larger market.
a. True
b. False
Many consumers redeem coupons only for products they normally buy.
a. True
b. False
A product line includes a group of closely related product items that are considered to
be a unit because of marketing, technical, or end-use considerations.
a. True
b. False
Situational influences generally have the greatest influence during the problem
recognition of the consumer buying decision process.
a. True
b. False
With respect to the promotion mix elements,________is a broad set of communication
efforts used to create and maintain favorable relationships between a company and its
stakeholders.
a. advertising
b. personal selling
c. reseller support
d. sales promotion
e. public relations
Kate owns a refreshment-stand business at the community ballpark. She goes to a
warehouse store like Sam’s and purchases snacks and canned soda that she will sell at
her refreshment stand. Kate is considered a(n)___________.
a. wholesaler
b. broker
c. retailer
d. intermediary
e. agent
___________links the purchase of an organization’s products to support philanthropic
organizations favored by the target market.
a. Loyalty marketing
b. Cause-related marketing
c. Rural marketing
d. Selective demand promotion
e. Embedded marketing
Scenario 17.2
Use the following to answer the questions.
The Presto Company manufactures several types of household appliances, including
blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores
such as Kohl’s, Macy’s, and J.C. Penney through its own sales force. Kerry Wilson is
one of Presto’s salespeople, who is responsible for stores headquartered in Region 1 of
the U.S. Kerry, has just come from a monthly meeting where she has been informed
about the new stovetop grill that will be part of next season’s lineup. Presto’s marketing
department has developed a promotional plan for the new grill and outlined that plan
for the sales staff in the meeting. The promotional plan for the next 60 days will include
television commercials which demonstrate the new grill, in-store rebates, and a
customer contest for the best grilled sandwich recipe. In addition, Kerry and other
members of the sales force will be given a free grill for their own home use so they can
become more familiar with the product. Presto is also offering a free trip to New York
City for their staff salesperson who has the highest dollar in sales to his or her stores. To
encourage the retail stores to push this product, Presto will offer the retail store a $5
discount for each grill that the store purchases after the 60-day promotion is over.
Presto’s use of free trip to New York is an example of_______ , while the $5 discount to
its retail stores is an example of_____ .
a. a trade allowance; a buy-back allowance
b. a buying allowance; a dealer loader
c. a dealer loader; a buy-back allowance
d. a sales contest; a buy-back allowance
e. a sales contest; a buying allowance
The World Trade Organization was an important outcome of the unification of Europe.
a. True
b. False
Of all the federal regulatory units, the most heavily influences marketing activities. a.
Food and Drug Administration (FDA)
b. Federal Communications Commission (FCC)
c. Environmental Protection Agency (EPA)
d. Federal Trade Commission (FTC)
e. Federal Power Commission (FPC)
A package can be used to attract customers’ attention.
a. True
b. False
Company sales potential is the maximum percentage of market potential that an
individual firm within an industry can expect to obtain for a specific product.
a. True
b. False
Scenario 13.1
Use the following to answer the questions.
Liz Claiborne Inc. markets several different brands, under their own Claiborne name
label, as well as others. Their primary brands, such as Liz Claiborne, Liz & Co, and
DKNY, are sold to wholesalers. These brands are then available through retail
department stores such as Kohl’s and Macy’s. Their wholesale-based brands division is
positioned as customer-focused and cost-efficient. Their premium brands division
includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands
are sold through stores that are owned by Claiborne.
Refer to Scenario 13.1. If Liz Claiborne were to distribute their Kate Spade brand
through its company-owned stores and through wholesalers, to major department stores,
then Liz Claiborne would be using distribution.
a. intensive
b. vertical
c. horizontal
d. dual
e. exclusive