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____ is a method of developing and maintaining an adequate assortment of materials or
products to meet a manufacturer's or a customer's demand.
a. The materials-handling system
b. An inventory control system
c. Direct sourcing
d. Contract logistics
e. Warehousing
Answer:
Shabby Chic fashion boutique has responded to economic trends by placing an
emphasis on improving the quality of merchandise it offers, improving customer
service, and reducing its cost of goods sold because consumers are not shopping as
much as they used to due to lower purchasing power. Shabby Chic is apparently dealing
with which level of economic activity?
a. Stagflation
b. Recession
c. Inflation
d. Stagnation
e. Distension
Answer:
A cold medicine manufacturer offers a promotion allowance to retailers for setting up
displays featuring its products. Retailers are also offered promotional allowances on
purchases of the products. Which legislation requires the manufacturer to make these
promotion allowances available to all retailers on a proportionately equal basis?
a. Hart-Scott-Rodino Act
b. Sherman Act
c. Celler-Kefauver Antimerger Act
d. Robinson-Patman Act
e. Lanham Act
Answer:
All of the following are characteristics of culture EXCEPT:
a. culture is pervasive
b. culture is learned
c. culture is functional
d. culture is an inherent trait
e. culture is dynamic
Answer:
A catalog retailer offers three styles of khaki pants at three price levels. The special
pricing tactic used by the catalog retailer is best described as variable psychological
pricing.
a. True
b. False
Answer:
In motivating their sales force, sales managers must be careful not to encourage:
a. increased turnover
b. unethical behavior
c. excessive costs
d. lowered morale
e. lowered customer satisfaction
Answer:
The focus of an organization's mission statement should be on:
a. the products it wishes to sell
b. the market it wishes to serve
c. its social responsibilities
d. the desires of government regulators
e. technologies it understands well
Answer:
HardieSidingProducts
James Hardie began selling fiber cement siding products in the United States in 1989 to
leading builders, lumberyards, and home improvement centers. Even though ads
guaranteed the product would not rot or crack for 50 years, many builders hated the
product. It was heavy to install, and it showed every flaw in a bad framing job. In 1997,
Hardie decided to run ads in traditional lifestyle magazines and emphasize the
emotional appeal of houses made with strong, weather-resistant materials. Soon
consumers began asking their builders or remodelers to use the product. Trade ads were
used to explain how builders could take advantage of the interest created by the ads in
lifestyle magazines. By 2000, the HardiePlank was the number one brand of siding in
North America. James Hardie is now the third most recognized brand of building
material in the world.
Refer to Hardie Siding Products. Since all of the siding products sold by Hardie are sold
under the James Hardie brand name, it is clear that the company uses a strategy.
a. family branding
b. private branding
c. business branding
d. co-branding
e. repositioning
Answer:
Profit maximization occurs when:
a. total costs equals average fixed revenue.
b. average variable costs are larger than average total costs.
c. total costs equal total variable costs.
d. marginal variable costs equal average revenues.
e. marginal revenue equals marginal cost.
Answer:
Due to rapidly rising overhead costs and increases in raw material prices, Framarx
Corporation was forced to raise the price of its waxed and coated paper by 35 percent.
(The paper is used between frozen hamburger patties to keep the patties from freezing
together.) Framarx is the leading manufacturer in this industry, and its competitors will
follow suit. While the sales force for Framarx believes the price increase will result in a
drop in sales, its marketing manager disagrees because the demand for the waxed and
coated paper is more than likely:
a. resistant.
b. inelastic.
c. derived.
d. elastic.
e. bundled.
Answer:
Internet companies use product and customer profiling to reveal cross-selling
opportunities while a customer is surfing their sites.
a. True
b. False
Answer:
Jefferson Smurfit Company is a multi-billion-dollar supplier of packaging materials.
One of its salespeople rearranged production schedules at three different plants to
satisfy an unexpected demand for boxes from General Electric. The salesperson's action
is typical of the company's sales philosophy and indicates an emphasis on:
a. consultative promotion.
b. relationship selling.
c. adaptive selling.
d. transformational selling.
e. transactional buying.
Answer:
E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian
customers who want to use their cultural heritage in their wedding ceremonies. What
type of segmentation strategy does the wedding consultant use?
a. Market aggregation
b. Undifferentiated targeting
c. Multisegment marketing
d. Concentrated targeting
e. Limited demand
Answer:
If a company's pricing objective is to meet the competition or to maintain existing
prices, it is using ____pricing.
a. head-on
b. target return on investment
c. status quo
d. market share
e. demand-oriented
Answer:
Marketing managers cannot control _____ , but they can sometimes influence it.
a. where advertising is placed
b. the external environment
c. the sales force
d. the distribution strategy
e. product pricing
Answer:
NAFTA is the New American Foreign Trade Amendment, which allows for balanced
trade with the European
Union.
a. True
b. False
Answer:
Interface
Interface, a manufacturer of floor covering products, has recently entered into an
agreement with Cargill, Inc. and Dow Chemical Company to develop a carpet
manufactured from corn fiber rather than the traditional nylon. Interface hopes to
develop a biodegradable carpet tile that will be sold to the public at prices only slightly
higher than nylon carpet tiles. Interface's CEO has repeatedly said the mission of his
company is to look for manufacturing materials that are renewable and not petroleum
dependent.
Refer to Interface. Which of the following is an example of a cultural influence on
consumer buying decisions?
a. Personality of the buyer
b. How much the buyer knows about actions he or she can take to save the environment
c. Lifestyle of the buyer
d. The buyer's motivation for buying the cornfiber carpet tile
e. The acceptance of green marketing among a society
Answer:
Sometimes a ____ is created for the purpose of sharing resources. This was why the
Donnelly Corporation, a company that designs, manufactures, and markets automotive
parts, joined with Applied Films Laboratory, Inc. to manufacture and supply the world
market with coated glass for liquid crystal displays (LCDs).
a. shared capital contract
b. global partner development strategy
c. strategic alliance
d. cobranding effort
e. market cooperative
Answer:
Which method of entering the global marketplace would be most risky?
a. Licensing
b. Direct investment
c. Contract manufacturing
d. Joint ventures
e. Exporting
Answer:
Sobha Developers has begun to develop distinctive valueadded offerings to its
customersstarting with the oldest and most consistent ones. Sobha is working toward
stronger ____ integration.
a. relationship
b. social
c. functional
d. operational
e. customer
Answer:
What role does technology play in personal selling?
a. Technology used to play a large role in personal selling, but its impact is diminishing.
b. Technology is the most important aspect of personal selling.
c. Technology plays an important role, especially in regards to social media.
d. Technology is completely irrelevant to personal selling.
e. Technology plays a small role in personal selling, but experts expect its importance to
rise over time.
Answer:
Which type of consumer sales promotion rewards loyal consumers for making multiple
purchases of a particular good or service?
a. A frequent buyer program
b. An 80/20 program
c. A net worth program
d. A premium program
e. A continuity program
Answer:
A newly hired employee at an advertising agency chose the clothes she purchased for
work by observing the clothes she saw worn in The Apprentice, a popular television
reality show. In this example, the women hoping to work for Donald Trump served as
primary membership groups.
a. True
b. False
Answer:
Tub King is a small company that refinishes antique claw foot bathtubs and antique
sinks, and provides training for bathtub refinishing. The company's management is
currently conducting a formal study of its current strengths and weaknesses by looking
at the company's profit and sales histories and searching for opportunities and threats by
studying consumer trends. Tub King is conducting a(n):
a. marketing audit
b. SWOT analysis
c. environmental scan
d. market differentiation scan
e. strategic window search
Answer:
Which of the following is an argument used to support corporate social responsibility
(CSR)?
a. The free market, not companies, should decide what is best for the world.
b. CSR can be a profitable undertaking.
c. Businesses are not responsible for social or environmental problems.
d. Businesses don"t have the expertise to make social decisions.
e. CSR is universally recognized, so there is no need for arguments to support CSR.
Answer:
First Community Bank spent a considerable amount of money updating its lobby with
plush sofas, a large-screen television, and a refreshment counter with popcorn and soft
drinks. However, very few customers spend time in the lobby. In fact, most customers
want to be in and out of the bank, with their financial transaction completed as quickly
as possible. The gap model of service quality would suggest that a gap exists between:
a. the service quality specifications and the service that is actually provided.
b. what the company provides and what the customer is told it provides.
c. the service customers receive and the service they want.
d. what customers want and what management thinks customers want.
e. what management thinks customers want and the quality specifications management
develops to provide the service.
Answer:
TwitPic, Flickr, and Photobucket are all examples of:
a. media sharing sites.
b. corporate blogs.
c. virtual worlds.
d. microblogs.
e. social networking sites.
Answer:
Products such as parking garages, mainframe computers, privately owned office
buildings, and street-cleaning equipment are depreciated over time rather than expensed
in the year they are purchased. These are classified as:
a. processed materials.
b. accessory equipment.
c. major equipment.
d. supplies.
e. component parts.
Answer:
Hallie is a calculating, self-centered salesperson. She never engages in relationship
marketing. She looks on any sales situation as a "win"lose" situation, and she believes
any legal method she can use is justified when she wins. Hallie is most likely at the
_____ stage of ethical development.
a. preconventional morality
b. transformationalism
c. conventional morality
d. egocentrism
e. basic morality
Answer:
In 2008, the NBC television network used advertising, personal selling, public relations,
and sales promotion to communicate with its target audience about its new show
My Own Worst Enemy. The television network's ___ described its plan on how to use
these tools most effectively.
a. mass communication mix
b. promotional strategy
c. selling plan
d. marketing mix
e. strategic goals
Answer:
Fisher-Price developed a rugged, waterproof camera for children. This product uses
_______ segmentation.
a. ethnicity
b. income
c. age
d. gender
e. occupation
Answer:
CableTV
It wasn"t so long ago that cable swaggered around the television industry as the upstart
threatening the broadcast networks. Now, cable is old news. The antagonist is the
satellite dish with the capability of delivering hundreds of channels and offering an
array of movies and sports events. The technology is known as direct broadcast
satellite, or DBS. The new challenger has awakened the 'sleeping giant" cable industry,
which has hit the airwaves with some of the most aggressive advertisements the
television industry has seen. The ads emphasize the downside of disconnecting cable
and choosing to purchase a satellite dish. One commercial opened with a man on a
couch joined by his wife with a large bowl of popcorn. They snuggled in front of their
television set, hooked up to DBS. She seemed excited about their new system and
exclaimed, "So this is it?" She then asked how much the satellite dish cost. When her
husband answered, the excitement was off. "There's no monthly fee?" she asked. "No
more than cable," he responded. When she asked to watch the news, he sheepishly said,
"Uh, can"t get local news." At the end of the commercial, the spokesperson for the
cable industry declared, "These days when everyone is promising you the future of
television, isn"t it nice to know you already have it?"
Refer to Cable TV. Television represents the ____ in the communication process used
by the cable industry to transmit its message.
a. feedback loop
b. channel
c. encoder
d. receiver
e. communicator
Answer:
