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The term 'supply chain" can be misleading because the chain typically involves only
two firms: a vendor (selling firm) and a customer (buying firm).
Answer:
Motivation, perception, learning, attitudes, trust, and lifestyle are psychological
variables that affect consumer buying.
Answer:
Exclusive distribution is more likely to involve a more formal arrangement than is
selective or intensive distribution.
Answer:
A statistical package is likely to be used with quantitative research, but not with
qualitative research.
Answer:
The steps in the adoption process are awareness, interest, evaluation, trial, decision, and
confirmation.
Answer:
Specialized search engines can help a business buyer search for products using
purchase specifications.
Answer:
Some wholesalers have higher operating costs because of the strategies they select,
including the special services they offer to some customers.
Answer:
The Robinson-Patman Act permits promotion allowances only if they are made
available to all customers on "proportionately equal terms."
Answer:
Retailers selling a new product that is in hot demand-like the latest DVD release or a
best selling book-would be unlikely to incur higher costs for faster delivery.
Answer:
The market maturity stage of the product life cycle has very low promotion
expenditures, little price competition, and rising industry profits.
Answer:
The effectiveness of advertising is best measured by relying on the judgment of creative
people and advertising "experts."
Answer:
Face-to-face communication with large numbers of customers at the same time is mass
selling.
Answer:
A firm that fails to offer a new marketing mix, stands to bear the high cost of missed
opportunities.
Answer:
Singles and young couples seem less willing to try new products because they earn less.
Answer:
In the U.S., there is little competition among transporting firms for shipping business
because government regulations control most transporting rates, routes, and schedules.
Answer:
The U.S. population is over 310 million people and the world population is more than 7
billion people.
Answer:
In a command economy, the individual decisions of many producers and consumers
make the macro-level decisions for the whole economy.
Answer:
The Clayton Act deals with tying contracts, exclusive dealing contracts, and
price-fixing conspiracies.
Answer:
It is the job of the marketing manager to ask for the right information in the right form.
Answer:
In total, advertising costs less than sales promotion.
Answer:
California is the state with the largest population, and Texas is a distant second.
Answer:
Much of the sales promotion aimed at final consumers or users tries to increase
demand, perhaps temporarily, or speed up the time of purchase.
Answer:
Developing a set of specific qualitative and quantitative screening criteria can help a
manager define in which business and markets the firm wants to compete.
Answer:
Negotiated contract buying would be used when the buyer knows precisely what he
wants and the requirements of the job aren't likely to change as the job is done.
Answer:
In consumer products, single-line wholesalers serve single-line and limited-line retail
stores.
Answer:
Logistics focuses on the handling of goods along a channel of distribution but not
within individual firms.
Answer:
It is the job of a sales promotion specialist to come up with an effective promotion
blend.
Answer:
Total advertising spending in other countries is lower than in the U.S.
Answer:
Storing makes goods available where they're needed.
Answer:
Over time, use of the Internet will result in a larger number of brokers.
Answer:
Direct spoken communication between sellers and potential customers is personal
selling.
Answer:
Rebates are refunds paid to consumers after a purchase.
Answer:
Younger families with no children are a good market for durable goods such as
automobiles and furniture.
Answer:
According to the U.S. Census Bureau, wholesaling is defined as the activities of firms
that sell to retailers, but do not sell in large amounts to final consumers, manufacturers,
or other institutional users.
Answer:
The U.S. government collects and publishes data by the NAICS codes.
Answer:
The main difference between attitudes and beliefs is that beliefs always involve liking
or disliking, but attitudes don't necessarily involve liking or disliking.
Answer:
The "marketing department era" is a time when all marketing activities are brought
under the control of one department.
Answer:
Firms often hire new salespeople and immediately send them out on the road.
Answer:
The two keys to improving how people implement quality service are: (1) training and
(2) more inspectors.
Answer:
Product class does not vary by country.
Answer:
Wholesaling is concerned with the activities of:
A. manufacturers who set up branch warehouses at separate locations.
B. persons or establishments that sell to industrial, institutional, and commercial users.
C. persons or establishments that sell to retailers.
D. All of these alternatives are correct.
Answer:
Which of the following statements is True regarding positioning?
A. Positioning refers to how managers think about proposed or present brands in a
market.
B. Positioning issues are not important when competitors in a market appear to be very
similar.
C. Usually, the positions of products are related to six or seven product features that are
important to product managers.
D. None of these statements is true.
Answer:
The economic environment:
A. Has no relationship to the technological environment.
B. Is not affected by the way all of the parts of the macro-marketing system interact.
C. Is the same from country to country.
D. Can change very rapidly.
E. Never requires marketing managers to make immediate changes in strategy.
Answer:
Sales-oriented pricing objectives include:
A. Growth in unit sales, dollar sales, or share of market.
B. Meeting competition.
C. Target return.
D. Profit maximization.
E. None of these alternatives is correct.
Answer:
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.
Answer:
Mail surveys:
A. may be more successful than personal interviews for getting personal information.
B. are often limited by low response rates.
C. are popular because they can be a convenient and economical approach.
D. All of these alternatives are true.
Answer:
A firm with a product in the market maturity stage of the product life cycle is likely to
focus on which basic promotion objective?
A. pioneering
B. publicizing
C. informing
D. lagging
E. persuading
Answer:
A motion picture studio that secures interviews in several national papers regarding
plans for its upcoming film releases is using which of the following promotion
methods?
A. Sales promotion
B. Personal selling
C. Advertising
D. Mass selling
E. Publicity
Answer:
Another term for direct marketing is:
A. integration.
B. mass communication.
C. publicity.
D. direct-response promotion.
E. sales promotion.
Answer:
In a firm with a production orientation
A. customer needs determine company plans.
B. relationship with customer extends beyond a single sale.
C. costs that do not give value to customers are eliminated.
D. marketing research, if used at all, is for determining customer reaction.
E. advertising is focused at need-satisfying benefits of goods and services.
Answer:
_________ are countries that limit the use of cartoon characters in advertising to
children.
A. USA and New Zealand
B. Japan and USA
C. France and Japan
D. New Zealand and France
E. Switzerland and USA
Answer:
Which of the following is LEAST likely to be classified as a marketing collaborator?
A. Mayflower Transport Company.
B. Internet Advertising, Inc.
C. Wachovia Bank.
D. Market Survey Research, Inc.
E. Quality Coatings and Paint Company.
Answer:
Use this information for question that refer to the Wire Products Inc. (WPI) case.
Rob Rose sat back to review the portfolio of products his company, Wire Products Inc.
(WPI), has in its product line. The company specializes in making various products for
consumer and industrial uses from hard laminated wire-coated with special paints.
1) WPI's "Wire Closet" products have been on the market for 10 years. Consumers
install the wire shelves and closet rods themselves. The market leader, Closetmaid, has
been selling similar products for more than 20 years, but so far the sales volume and
profits for the market continue to grow. Recently, several new competitors have come
into the market.
2) Three months ago, WPI entered the lawn and garden market with folding fences
made with laminated wire and branded as "Wire Fold-Fence." Previously, WPI had
never made fences or been a player in the lawn and garden market-although other
companies have been making products in this market for years. However, Rob Rose has
discovered that recent sales of wire garden fencing have leveled off and profits are
declining overall. Still, WPI thinks it has some cost advantages and can grow its own
sales and profits in this market.
3) WPI has just developed "Oil Wire," a new concept for the environmental cleanup
market. Oil Wire is coated with a special material that cleans up oil spills. There has
never been a product like this and WPI wants to quickly get the word out about its
benefits. The product is now being rolled out in selective markets.
4) Another business product is "Wire Locker" used for secure storage by gymnasiums
or companies. This style of locker has now gone out of fashion and most customers are
finding better materials to use for lockers. Aggressive selling has helped Wire Locker's
sales stay flat, but the total market for wire style lockers is only half of what it was 10
years ago.
5) WPI's "Wire Window" product is used as a security product to protect glass
windows. It sells to homeowners and retailers looking for additional safety. WPI's sales
of this product have dropped in recent years because competitors have introduced
maintenance-free products. However, the overall market for this type of product
continues to show good growth.
6) WPI is running concept tests of a new wire car-top carrier called "Wire Car Top."
There are other car-top carrier products on the market, but WPI plans to include options
in its carrier that will make it easier to load bikes, skis, and suitcases. "Wire Car Top" is
also very easy to put on and take off of the car because of its light weight and
ease-of-use features. The concept tests are helping WPI analysts develop rough
estimates of costs, sales, and profits.
7) Another new product idea, tentatively called "Wire Tent," is being considered. It
would use laminated wires to create a portable tent frame. This product is currently
being evaluated to determine its fit with the company's objectives and external market
trends.
Rob is thinking about the product life cycle, where each product fits, and what he
should be doing as part of his marketing plan for each of these products.
For which product is it most critical for WPI to build brand familiarity?
A. Wire Closet
B. Wire Window
C. Wire Locker
D. Wire Tent
E. It is equally important for each of these products
Answer:
During the market maturity stage of the product life cycle:
A. some competitors drop out of the market-and no new firms enter.
B. persuasive promotion becomes more important.
C. promotion emphasizes the advantages of the basic product concept.
D. total industry sales and profits reach their maximum levels.
E. None of these alternatives are correct.
Answer:
In the United States, the _____ has the power to control unfair or deceptive business
practices, including deceptive advertising.
A. CPSC
B. FTC
C. FDA
D. OSHA
E. USDA
Answer:
The monopolistic competition that is typical of the U.S. economy
A. always leads to higher prices, but it may not lead to higher consumer satisfaction.
B. is a problem because it does not result in products that reflect consumer's social
values.
C. is the result of consumer preferences.
D. is the result of manipulation of markets by business firms.
E. None of these alternatives is correct.
Answer:
A CVS drugstore that is trying to attract customers by advertising a special bargain
price on a popular brand of cold remedy during the cold season is using:
A. leader pricing.
B. bait pricing.
C. prestige pricing.
D. odd-even pricing.
E. price lining.
Answer:
Which of the following is an ethical problem in marketing research?
A. A researcher does not disclose problems that occurred during consumer interviews.
B. A company calls consumers under the guise of doing research when the phone calls
are really sales pitches for the company's products.
C. A manager informs a researcher that the only acceptable results are ones that confirm
the manager's existing viewpoints.
D. A researcher deliberately withholds details about how a research study was
conducted.
E. All of these statements illustrate ethical problems in marketing research.
Answer:
The commission method of payment:
A. includes some salary and some commission.
B. offers the most security for the salesperson.
C. offers the most incentive for the salesperson.
D. is tied to results projected in the sales plan.
E. increases the amount of sales supervision needed.
Answer:
Marketers need to foster cooperation with various members of a channel system to
prevent:
A. channel competition.
B. channel confusion.
C. channel conflict.
D. channel changing.
E. channel surfing.
Answer:
In "traditional channel systems," the channel members:
A. consider traditional values-like cooperation and respect-as central to their
relationship.
B. have franchise contracts.
C. usually have a common product-market commitment.
D. make little or no effort to cooperate with each other.
E. are integrated.
Answer:
When Hewlett-Packard sends an e-mail to key business customers announcing a special
low price on a new type of printer that is faster and produces better-quality color
documents than any of its current printers, this is an example of:
A. direct-response promotion.
B. integration.
C. publicity.
D. indirect-response promotion.
E. mass selling.
Answer:
Which of the following statements about a flexible-price policy is True?
A. Flexible pricing means offering the same price to all customers who purchase under
essentially the same conditions and in the same quantities.
B. The availability of computer pricing databases has had no effect on the popularity of
flexible-price policies.
C. Flexible pricing often involves price negotiation between the buyer and seller.
D. Flexible pricing does not cause channel conflict.
E. None of these statements about a flexible-price policy is true.
Answer:
_____ as a mode of transport serves a very limited number of locations but has a high
dependability in meeting schedules.
A. Trucks
B. Railroads
C. Waterways
D. Airfreight
E. Pipelines
Answer:
The _________ compensation plan increases the amount of sales supervision needed.
A. Straight salary
B. Commission pay
C. Bonus plan
D. Combination plan
E. Profit-sharing plan
Answer:
Use this information for question that refer to the "Salespeople" case.
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager - and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
What type of compensation plan should Ben Peterson have?
A. straight salary
B. straight commission
C. a combination of salary and commission
D. a salary that is paid only if a certain sales quota is achieved
E. any of these is equally appropriate for Ben's job
Answer:
A jewelry maker's suppliers of gold, platinum and silver, the warehouses that store its
finished goods, and the trucks that deliver the product to retailers are all part of a:
A. private warehouse system.
B. supply chain.
C. modal transportation hub.
D. distribution point.
E. public warehouse network.
Answer:
Which of the following statements is True regarding social responsibility in marketing?
A. Being socially responsible usually leads to a negative response from customers.
B. Being socially responsible can conflict with a firm's profit objective.
C. Companies tend to avoid developing written codes of ethics because standards for
professional behavior are ambiguous by nature.
D. Firms tend to advance their own short-term interests at the expense of customers.
Answer:
____ are educated guesses about the relationships between things or about what will
happen in the future.
A. Data insights
B. Observations
C. Situation analyses
D. Hypotheses
E. Marketing models
Answer:
Needs such as accomplishment and relaxation, which are unrelated to what others think
or do, are known as:
A. physiological needs.
B. safety needs.
C. social needs.
D. personal needs.
E. biological needs.
Answer:
