A large producer who offers no discounts and the same prices to all customers in the
U.S.:
A. does not have pricing objectives.
B. ignores the benefits of administered pricing.
C. probably ignores nonprice competition too.
D. may be “playing it safe” because of concern about the Robinson-Patman Act.
E. is probably violating the antidumping laws.
Which of the following population groups is the most techno-savvy?
A. Seniors
B. Gen X
C. Boomers
D. Busters
E. Gen Y
The sales and profits of an individual brand may or may not follow the life cycle pattern
of the product idea.
Physiological needs are concerned with
A. protection and physical well-being.
B. love, friendship, status, and esteem.
C. an individual’s need for personal satisfaction.
D. biological needs.
E. responsibility and independence.
Which of the following is a benefit of branding from the perspective of the
manufacturer?
A. Brands improve a company’s image.
B. Brands speed acceptance of new products.
C. Brands reduce selling time and effort, especially for new products marketed under
the same name.
D. All of these are benefits to manufacturers.
A tire retailer is advertising a very low price on a popular size tire. When a customer
comes into the store, the clerk says the low-priced item is sold out, and tries to convince
the customer to buy the top-of-the-line modelclaiming the low priced model is not a
very good buy even at the low price. This is an example of:
A. leader pricing.
B. full-line pricing.
C. value in use pricing.
D. price lining.
E. bait pricing.
A high stockturn rate:
A. is only possible with a low markup percent.
B. is likely to result in low profits.
C. reduces the inventory investment and can improve profits.
D. increases the space needed for inventory.
E. None of these alternatives is correct.
A sales rep for installations probably should use a ______________ sales presentation.
A. consultative selling approach
B. target market
C. prepared
D. selling formula approach
E. Any of these sales presentations would work.
Which of the following is a BEHAVIORAL segmenting dimension?
A. Needs.
B. Region of the world or country.
C. Income.
D. Education.
E. Ethnicity.
To assess products through the eyes of the consumer, managers should:
A. focus on tangible product components.
B. focus on production quality.
C. focus on pricing.
D. focus on the total satisfaction and benefits for users.
E. focus on eye-catching packaging.
Organizational buyers:
A. tend to rely almost totally on salespeople as their source of information.
B. prefer formal procedures for rating vendors over informal approaches like vendor
analysis.
C. are likely to do little search for additional information if the purchase is unimportant.
D. tend to be more emotional than final consumersbecause their jobs are at risk if a
problem arises.
E. None of these alternatives is correct.
Multichannel distribution:
A. May involve using both direct and indirect channels simultaneously.
B. May offer producers a way to reach customers they would not be able to reach with a
single channel.
C. Is becoming more common.
D. May create channel conflict.
E. All of these alternatives are correct.
The “economic-buyer” model:
A. is seen as too simplistic by most marketing managers.
B. assumes that consumers are affected by psychological variables and social
influences.
C. suggests that men and women behave differently as buyers.
D. assumes that buyers don’t have enough information to make logical choicesand as a
result buy products that are not a good value.
E. None of these is true of the economic-buyer model.
______________ are reductions from list price that are given by a seller to a buyer who
either gives up some marketing function or provides the function himself.
A. PMs
B. Phony prices
C. Spiffs
D. Markups
E. Discounts
Developing a set of specific qualitative and quantitative screening criteria
A. increases the different opportunities–and strategy possibilities–in the market.
B. can make it difficult to zero in on the best target market and marketing mix.
C. cannot help eliminate potential strategies that are not well suited for the firm.
D. can help a manager define what business and markets the firm wants to compete in.
E. highlights advantages of a strategy but does not make it clear why you should select
that strategy.
Which of the following media types accounted for less than 5 percent of total ad
spending in 2010?
A. Outdoor and cinema
B. Magazines
C. Television
D. Radio
E. Newspaper
Specialty products:
A. need widespread distribution at low cost.
B. need enough exposure to facilitate price comparison.
C. need adequate representation near similar products.
D. need widespread distribution near probable points of sale.
E. can have limited availability.
Saying that a “good” product-market segment should be substantial means
A. that the company does not have to worry about substantial competition for a long
time.
B. that people should have substantially different reactions to marketing mix variables.
C. it should be large enough to be profitable.
D. that people in different market segments should be as different as possible.
E. None of these choices is correct.
When Walgreens Drugstore advertises one price for the cost of a roll of film and the
cost of processing it, it is using
A. complementary product pricing.
B. flexible pricing.
C. product-bundle pricing.
D. a one-price policy.
E. bait pricing.
The largest share of U.S. advertising money goes for:
A. radio.
B. newspapers.
C. magazines.
D. direct mail.
E. television.
Working capital might come from:
A. sale of bonds
B. a previous period’s profits
C. loans
D. sale of stocks
E. any of these
A firm that discriminates in price on goods of “like grade and quality” may be in
violation of the ___________ Act.
A. Sherman
B. Robinson-Patman
C. Wheeler-Lea
D. Magnuson-Moss
E. Antimerger
A firm’s “relevant market for finding opportunities” should:
A. be limited to products the firm already produces.
B. be bigger than the firm’s present product-marketbut not so big that the firm could not
be an important competitor.
C. have no geographic boundaries.
D. be as large a possible.
E. be no larger than the firm’s present product-market.
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.
Faced with many “me-too” competitors, Sonic Burgers, Inc. has set its price level to
“meet competition”while emphasizing nonprice competition. Sonic Burgers’ pricing
objective seems to be a ______________ objective.
A. status quo
B. sales-oriented
C. profit-oriented
D. satisfactory profits
E. maintaining market share
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.
Which of the following types of advertising would most likely be used by an oil
company that wished to improve its reputation after an oil spill?
A. Direct competitive advertising
B. Indirect competitive advertising
C. Pioneering advertising
D. Institutional advertising
E. Cooperative advertising
The cash discount terms for a purchase worth $1,000 made on August 1 are 3/10, net
30. How much will the buyer have to pay if he makes the payment on August 7?
A. $930
B. $30
C. $1,030
D. $1,000
E. $970
A _____ is a number like a baseball batting average that shows the relation of one value
to another.
A. benchmarking goal
B. performance index
C. performance quota
D. benchmark ratio
E. standard quota
A sales presentation in which the sales rep does most of the talking, using a “canned”
presentation to obtain a “yes” answer to a “trial close” is a:
A. prepared sales presentation.
B. target market presentation.
C. consultative selling presentation.
D. selling formula presentation.
E. None of these is a good answer.
In the U.S. by 2015, Internet retailing is expected to total just over ________ billionnot
counting travel and other services.
A. $25
B. $80
C. $150
D. $300
E. $750
The greatest growth in the world’s population over the next several years will come
from:
A. Western Europe.
B. Africa.
C. Australia.
D. Eastern Europe.
E. Russia and nations of the former Soviet bloc.
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.