Which of the following is most consistent with the marketing research process
discussed in the text?
A. “We know that time is always short, so as soon as we define the problem we get on
with our data collection.”
B. “We pay a lot for marketing research experts, so our managers don’t waste time
trying to figure out how projects should be conducted.”
C. “We always use mail surveys, so that we won’t have to worry about nonresponse
problems.”
D. “Secondary data is often all we need to solve our problems.”
E. None of the statements is a good answer.
Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby
and craft supplies. She bought the store after working there for 7 years. Carol has just
been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber
of Commerce. The most active chamber members in her group are described below:
Walden’s Leather is part of a regional chain of stores that sells leather goodsmostly
men’s and women’s clothingwith the upscale Walden’s brand name. Walden’s primarily
relies on its own stores where knowledgeable salespeople offer great service. Walden
products are also sold, on a limited basis, in some fine department stores.
Publisher’s Helper is a small business started by Audrey Yang that provides and stocks
display racks for paperback books and magazines. Most retailers welcome the service
Audrey provides, in part because she does her own research to determine which
paperback books and magazines sell best in Centerville.
Cuzco’s is Centerville’s alternative to Walmart. The store sells a wide variety of
merchandise. The company used to concentrate its product mix on small appliancesbut
now Cuzco’s carries any product that it can sell profitably. Its low prices stimulate faster
turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed
a contract with Games Unlimited and follows strict rules covering her store’s operations
and the Games Unlimited marketing strategy. She pays that company a fee for
promotion it provides as well as commissions on her sales.
Johnson’s Health and Beauty Supplies sells cosmetics and other health and beauty
products to retailers and salons throughout the greater Centerville area. It owns the
goods it sells to these retailer customers, and it provides all the wholesaling functions
they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored
by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer
name are linked by contracts that include basic operating procedures, storefront designs,
and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding
in the Centerville area. It earns a commission from each manufacturer on the products it
sells for that manufacturer, but it does not take ownership of the equipment it sells nor
does it install the equipment.
Katrina’s Salon started out as a low-status, low-price, low-margin hair salon 15 years
ago. After some success, the company moved into a nicer storefront, raised prices, and
now operates in the middle of the market.
Which of these businesses is a voluntary chain?
A. Games Unlimited
B. Valu Grocer
C. Walden’s Leather
D. Katrina’s Salon
The Federal Trade Commission Act of 1914 focuses on:
A. mergers between competitors.
B. unreasonable practices related to product warranties.
C. unfair methods of competition.
D. tying contracts.
E. attempts to monopolize.
When a purchasing manager knows roughly what is needed but can’t describe it
exactlyor when the purchasing arrangement may change as the job progressesthen
buying is likely to be by:
A. negotiated contract.
B. description.
C. inspection.
Which of the following observations concerning sales analysis is NOT correct?
A. It is a detailed breakdown of a company’s sales records.
B. Product category is the best way to analyze sales data.
C. Data can easily be obtained from basic billing and accounts receivable procedures.
D. It is easy to do, and usually it’s inexpensive.
E. There is no one best way to break down sales data.
In its ads, Clorox touts the effectiveness of its Disinfecting Wipes by claiming that they
disinfect better than those made by Windex, a competing brand. This is:
A. reminder advertising.
B. comparative advertising.
C. selective advertising.
D. institutional advertising.
E. primary advertising.
Which of the following chains is the largest food retailer in the U.S.?
A. Kroger’s
B. Safeway
C. Walmart
D. Target
E. Kmart
Which of the following is NOT a business product?
A. A roll of sheet metal.
B. A metal shelf system for storing inventory.
C. A custom-built robot for welding metal.
D. A pad of paper.
E. Any of these could be a business product.
When selecting the degree of market exposure for a firm’s products, it’s important to
remember that:
A. vertical arrangements between producers and intermediaries which limit sales by
customer or territory are definitely illegal.
B. the Federal Trade Commission prohibits exclusive distribution.
C. vertical arrangements between producers and intermediaries which limit sales by
customer or territory may be legal according to a recent Supreme Court ruling.
D. horizontal arrangements among competing producers or intermediaries which limit
sales by customer or territory are generally considered legal.
E. None of these alternatives is correct.
Customer value
A. is greater if costs exceed benefits.
B. becomes less important as competition increases.
C. is the same thing as low price.
D. affects a customer’s relationship with a firm before and after a sale.
E. none of these responses is correct.
Containerization:
A. is widely used by railroads, but has not caught on with other modes.
B. makes it easier to load and unload products, but it increases the risk of damage.
C. has increased competition between railroads and water shippers since both offer this
service.
D. is commonly used for international shipments from Japan.
E. None of these alternatives is true.
In an effort to increase its total sales, Champion has started exporting its spark plugs for
use by several German auto producers. Champion is pursuing a ______________
opportunity.
A. diversification
B. market penetration
C. product development
D. mass marketing
E. market development
Which of the following is the LEAST appropriate advertising objective?
A. “We want our ads to increase traffic in our retail outlets by 10 percent.
B. “We want our TV ads to really promote the product.”
C. “We want the ad campaign to increase our market share by 3 percent.”
D. “We want distribution in 30 percent of the desirable retail outlets.”
E. None of these, i.e., all are equally appropriate.
The owner of a company that produces electronic circuit boards sees many competitors
with extra capacity and says, “the only hope is that our sales manager, who makes all of
our marketing decisions, will find a way to sell more boards.” It seems that this
company is run as if it were in the:
A. production era.
B. sales era.
C. excess capacity era.
D. marketing company era.
E. marketing department era.
Amazon.com and eBay.com are both considered
A. Internet-based collaborators.
B. Internet-based producers.
C. Internet-based service providers.
D. Internet-based intermediaries.
E. Internet-based manufacturers.
Drop-shippers:
A. have high operating costs because they do transporting and storing.
B. do not stock the products they sell.
C. do not take title to the products they sell.
D. do not emphasize selling.
E. do not anticipate their customers’ needs.
A target return figure of zero implies:
A. setting negligible sales targets.
B. setting a price level that will just recover costs.
C. setting a price that helps attain previous year’s high profitability.
D. setting a price that would match the industry standard profit margin.
E. setting a price at which competition will be zero.
Order getters
A. are concerned with establishing relationships with new customers and developing
new business.
B. sell to the regular or established customers, complete most sales transactions, and
maintain relationships with their customers.
C. usually handle all adjustments or complaints.
D. routinely complete sales made regularly to target customers.
E. are usually responsible for answering any final questions and completing the sale.
Regarding marketing control:
A. Today’s marketing managers have access to more information about the effectiveness
of their strategies than in previous years.
B. Fast feedback from the marketplace can be a source of competitive advantage.
C. The marketing manager needs information that is captured as soon as it comes in.
D. Fast feedback is not possible unless the necessary data can be quickly sorted and
analyzed.
E. All of these are correct.
Shipping by air
A. is most useful for smaller, high-value items.
B. may reduce handling costs.
C. generally involves higher transportation costs than other modes of transportation.
D. offers greater delivery speed.
E. All of these alternatives are correct for shipping by air.
The text’s “full-cost approach” to marketing cost analysis:
A. looks only at each customer or product’s “contribution margin.”
B. allocates all costs to products, customers, or other categories.
C. looks only at those costs which are directly related to particular alternatives.
D. is misleading and should be avoided.
E. All of these are correct.
The authors of the text contend that:
A. Both micro- and macro-marketing cost too much.
B. Neither micro- or macro-marketing costs too much.
C. Micro-marketing often does cost too much, but macro-marketing does not.
D. Micro-marketing does not cost too much, but macro-marketing does.
E. None of these alternatives is correct.
Which of the following is NOT a level of brand familiarity?
A. Brand nonexistence.
B. Brand rejection.
C. Brand nonrecognition.
D. Brand preference.
E. Brand insistence.
Nissan’s Altima advertises the performance of its new luxury sedan by showing it
side-by-side with competing brands, like Lexus and BMW. This is:
A. primary advertising.
B. institutional advertising.
C. reminder advertising.
D. comparative advertising.
E. selective advertising.
Which of the following is less likely to happen as a product moves through the later
stages of the product life cycle?
A. Place-move toward selective distribution.
B. Promotion-build selective demand.
C. Price-meet competition.
D. Competitive situation-Heading toward pure competition.
E. Product-Some drop out.
Marketing encourages research and ______________, the development and spread of
new ideas, goods and services.
A. analysis
B. assessment
C. evaluation
D. innovation
E. introspection
When the “full-cost approach” to marketing cost analysis is used, allocating fixed costs
on the basis of sales:
A. may make low-volume customers appear more profitable than they are.
B. increases each customer’s contribution margin.
C. decreases the profitability of the whole business.
D. makes large-volume customers appear more profitable that they are.
E. increases the profitability of the whole business.
All of the following are regrouping activities EXCEPT
A. accumulating.
B. bulk-breaking.
C. sorting.
D. assorting.
E. channeling.
Which of the following statements about agent wholesalers is FALSE?
A. Agent wholesalers based in a foreign market can be helpful in working through
government red tape because they know the local business customs.
B. Export and import brokers bring together buyers and sellers from different countries.
C. Manufacturers’ agents can call on international customers at no cost to the producer
until something sells.
D. Export and import agents are basically selling agents who specialize in international
trade.
E. Agent wholesalers are common in international trade.
Which of the following could be considered a part of a retailer’s “Product”?
A. Advice from salespeople.
B. After-sale service.
C. Convenient parking.
D. Width and depth of product assortment.
E. All of these are parts of a retailer’s “Product.”
A manufacturer of which of the following product lines would be most likely to use a
specialty wholesaler?
A. Electric appliances
B. Hardware items
C. Lumber
D. Plastic materials
E. Industrial cleaning supplies
The ______ area of the marketing mix is concerned with decisions about getting the
“right” product to the target market when and where it’s wanted.
A. product
B. people
C. promotion
D. price
E. place
Offering a CUMULATIVE quantity discount seeks to:
A. reduce the seller’s shipping costs.
B. eliminate some marketing function.
C. shift some of the storing function to the buyer.
D. encourage the buyer to make additional purchases.
E. All of these alternatives are correct.
Sellers sometimes take the auction approach and adapt it by using sequential price
reductions over time. When or where is this approach most commonly used?
A. With products that have a short life.
B. When the product supply is unlimited.
C. With heavy equipment manufacturing machinery.
D. With products that have extremely low inventory costs.
E. When competition is absent.