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If a firm's demand curve is fairly elastic, a penetration pricing policy would be more
suitable than a skimming pricing policy.
A lot more firms will put ads on websites if there is a direct relationship between costs
and results.
"Economies of scale" means that as a company produces more of a product, the cost of
each unit produced goes down.
When a retailer advertises a 'special 24-hour sale on GE brand air conditioners," direct
competitive advertising is being used.
Marital status, age, and the age of any children in a household are the three
demographic dimensions that determine stage of family life cycle.
Product managers are especially common in small, single-product companies.
The "Product" area is concerned with what goods and services are produced, but not
with decisions about installation, instructions on use, packaging, a brand name, a
warranty, or after-sale service.
Product-bundle pricing may encourage customers to spend more and buy products that
they would not buy otherwise.
The term "marketing orientation" means making products that are easy to produce and
then trying to sell them.
In mature markets there is downward pressure on both prices and profit margins. In this
situation retailers often have to set prices to meet the competition.
Advance information on product availability affects physical distribution (PD) service
levels.
Firms that use direct distribution can usually adjust their marketing mixes faster than
firms that use indirect distribution.
Strategic (management) planning is a managerial process of developing and
maintaining a match between the resources of the production department and its
product opportunities.
The GE 'stop-light" evaluation method is a very objective approach because GE feels
there are too many possible errors if it tries to use subjective criteria for judging
"attractiveness" or 'strength."
The largest share of total advertising expenditures in the United States goes for TV
(including cable) advertising.
The median age in the United States increased from 30 in 1980 to 37 in 2010.
A producer's order taker may explain details, handle complaints, and train the
customer's employees.
Scrambled merchandising means mixing product lines for higher profits.
GE's strategic planning grid considers two dimensionsindustry attractiveness and
business strengthsto identify opportunities that may be growth, borderline, or no
growth.
It is more costly for firms to try and attract new customers than it is to build a strong
relationship with existing customers.
The contribution-margin approach to marketing cost analysis focuses attention on
variable costs rather than total costs.
The seven-step approach to segmenting product-markets (discussed in the text) helps
expand from a narrow set of opportunities to a broader target market and marketing
strategy.
The cost of replacing defective parts is the biggest cost of poor quality.
It is very common for manufacturers to concentrate in certain geographic areas and by
type of industry.
Cooperative advertising involves intermediaries and producers sharing in the cost of
ads.
"Meeting competition" is a sales oriented pricing objective.
In business markets, a seller would always prefer to have a closer relationship with a
customer.
An expectation is an outcome or event that a person anticipates or looks forward to.
A "good" market segment should be composed of people who are as homogeneous as
possible with respect to their likely responses to marketing mix variables.
Advances in computer software have accelerated the move to cost analysis and
performance analysis.
Dissonance takes place when an individual is NOT confident about the rightness of a
decision.
Cookies are a cost-effective way for advertisers to target ads and boost online sales.
The market introduction stage of the product life cycle is usually marked by losses, as
money is being invested in the hope of future profits.
To evaluate the effectiveness of advertising, it's better to rely on the judgment of the
creative people in ad agencies than to rely on the results of advertising research.
A "breakthrough opportunity" is an opportunity that helps innovators develop
long-term, hard-to-copy marketing strategies that will be very profitable.
A consumer's choice of a retail store appears to be based almost entirely on economic
needs.
Which of the following wholesalers own (take title to) the products they sell?
A. Selling agents
B. Combination export managers
C. Brokers
D. Manufacturers' agents
E. None of these wholesalers owns the products they sell.
The "Fashion Place" carries a carefully selected and distinctive assortment of traditional
women's business clothing and accessories for upper-class executives in Boston. It
emphasizes customer service with its well-trained salesclerks. The store is probably a:
A. small department store.
B. specialty shop.
C. convenience store.
D. single-line store.
E. limited-line store.
A ______________ is an organized way of continually gathering and analyzing data to
get information to help marketing managers make ongoing decisions.
A. marketing information system
B. marketing model
C. marketing research project
D. marketing research department
E. marketing logistics system
A good order getter:
A. is likely to use a high level of personal persuasion.
B. is especially important for selling installations and accessory equipment.
C. needs "know how" to help solve customers' problems.
D. uses a well-organized sales presentation designed to get new business.
E. All of these alternatives are correct.
A retailer of men's suits who is advertising a popular brand of dress shirts at a reduced
price to attract customers is using:
A. price lining.
B. leader pricing.
C. odd-even pricing.
D. bait pricing.
E. prestige pricing.
Which of the following statements about using the Internet to gather secondary
information is FALSE?
A. Internet searches often identify too many irrelevant sources.
B. Information on the Internet is readily available and very reliable.
C. Much of the information stored on the Internet is in database formats.
D. The key to the Internet is finding what's needed.
E. Powerful Internet search engines provide lists of links to websites that include words
specified by the researcher.
A profit maximization pricing objective
A. is a sales-oriented pricing objective.
B. does not always lead to high prices.
C. can never be socially responsible.
D. is often stated as percentage of market share.
E. is a status quo oriented pricing objective.
Which of the following is NOT true about Internet retailing?
A. By 2015, retail sales on the Internet are expected to top $300 billion.
B. Users of tablet computers like the iPad especially enjoy online shopping.
C. About three quarters of all books are now sold online.
D. Online retailers usually have lower operating costs than brick-and-mortar stores.
E. Online stores cannot sell products like eyeglasses because of a need to try them on.
Marketing research:
A. usually requires complex statistical techniques, so marketing managers should leave
planning of the research to the research specialists.
B. is likely to be more effective when guided by the strategy planning framework.
C. should gather as much information as possible.
D. begins by analyzing the situation.
E. All of these alternatives about marketing research are correct.
The price per unit is $1.00. The average variable cost per unit is 60 cents. The total
fixed cost is $20,000. Compute the break-even point.
A. 75,000 units
B. 50,000 units
C. 20,000 units
D. 33,334 units
E. 40,000 units
According to the "continuum of environmental sensitivity," which of the following
types of products are less sensitive to environmental changes?
A. "Faddy" type consumer products
B. Industrial products
C. Basic commodity-type consumer products
D. Consumer products that are linked to cultural variables
E. All of these types of products are equally sensitive to environmental changes.
"Empty nesters":
A. are senior citizens.
B. are people over 65 who live alone.
C. often have high incomes and fewer required expenses.
D. are singles and couples without childrenwho have much discretionary income.
E. None of these alternatives is correct.
Which of the following is an example of a fixed cost?
A. Wages
B. Outgoing freight
C. Depreciation
D. Sales commissions
E. Packaging material expense
The _____ is a qualitative research method in which an interviewer asks very broad
questions that encourage the interviewee to provide details.
A. data warehouse
B. non-directive interview
C. response rate
D. consumer panel
E. situation analysis
Regarding controlling marketing programs:
A. 'sales analysis" and "performance analysis" mean the same thing.
B. traditional accounting reports are very useful for controlling marketing programs.
C. sales analysis is so revealing that there is no such thing as having TOO MUCH data.
D. the control process helps marketing managers learn how ongoing plans are working.
E. All of these are true.
_____ refers to reliably getting products there exactly before the customer needs them.
A. Total quality shipping
B. Effective gatekeeping
C. Just-in-time delivery
D. On-time vendor management
E. Assured outsourcing
For many firms, the largest single operating expense is:
A. Publicity.
B. Personal selling.
C. Administrative overhead.
D. Product management.
E. Research and development.
A marketing audit is:
A. an evaluation of day-to-day marketing operations.
B. an analysis of the profitability of all profit centers.
C. a review of a marketing program during a crisis.
D. a detailed look by a CPA at how the company's marketing costs are allocated.
E. a systematic, critical, and unbiased review and appraisal of the objectives and
policies of the marketing function.
General Electric's 'strategic planning grid":
A. focuses on market share and market growth rate.
B. requires subjective judgments about business strengths and industry attractiveness.
C. requires that all opportunities be judged either "High" or "Low."
D. substitutes quantitative estimates for management judgment.
E. All of these alternatives about GE's strategic planning grid are true.
Estimating a customer's lifetime purchasing potential is important because it helps
marketers to:
A. make a quick sale on a product.
B. decide whether to place ads online or in magazines.
C. recognize that mass marketing is the best way to reach customers.
D. select the right channel of distribution.
E. devise long-range plans and strategies for building customer relationships.
Regarding installations, which is NOT true?
A. The number of potential customers at any one time is quite large.
B. Leasing installations may be attractive to buyers.
C. It is common for sellers to offer specialized services.
D. The buying needs of potential customers are basically economic.
E. Multiple buying influence is common.
Which of the following NAICS codes would be used by a marketing manager who
wanted data on the MOST GENERAL breakdown of a particular industry?
A. 31
B. 31522
C. 315
D. 3152
E. There is no way to tell from the information provided.
Marketing research which seeks structured responses that can be summarized is called:
A. focus group research.
B. quantitative research.
C. qualitative research.
D. situation analysis research.
E. open-ended research.
Which of the following statements is true?
A. Consumer demand for a specific brand at a profitable price helps build brand equity.
B. Brand equity is likely to be higher if retailers are eager to stock the brand.
C. The value of a brand to its current owner is called brand equity.
D. It is usually difficult and expensive to build brand recognition.
E. All of these statements are true.
The _____ is a decision-making approach that focuses on being objective and orderly in
testing ideas before accepting them.
A. decision support system
B. situation analysis
C. idea generation process
D. marketing information system
E. scientific method
Order taking involves:
A. establishing relationships with new customers and developing new business.
B. selling to new customers.
C. seeking possible buyers with a well-organized sales presentation designed to sell a
good, service, or idea.
D. enhancing the relationship with the customer and getting sales in the long run.
E. routinely completing sales made regularly to target customers.
DrainClear Plumbing Supply has found that an effective salesperson should call on each
account about four times a year and spend about three hours per sales call. Every
salesperson at DrainClear works a 40-hour week and takes off two weeks for vacation
each year. A salesperson must spend one quarter of the time on travel and
administration. Approximately how many salespeople does DrainClear need to service
1000 accounts?
A. 8
B. 12
C. 2
D. 6
E. 24
Customers see _____ products as different and want to inspect them for quality and
suitability.
A. heterogeneous
B. specialty
C. new unsought
D. impulse
E. convenience
______________ would be LEAST LIKELY to use supporting salespeople.
A. Supermarkets
B. Producers of prescription drugs
C. Producers of business accessories
D. Producers of consumer staples
E. Merchant wholesalers of installations
Which of the following is NOT a psychological variable?
A. Culture.
B. Personality.
C. Learning.
D. Perception.
E. Attitudes.
People who help order-oriented salespeoplebut don't try for orders themselves are:
A. technical specialists.
B. missionary salespeople.
C. supporting salespeople.
D. All of these are correct.
