Because the cultural and social environment tends to change slowly, firms should try to
identify and work with cultural attitudes rather than trying to encourage big changes in
the short run.
Answer:
A competitive bid is the terms of sale offered by a supplier in response to the purchase
specifications posted by a buyer.
Answer:
Often the best way for a firm to beat the competition is to be first to satisfy a need that
others have not even considered.
Answer:
Marketing can provide needed direction for production and help make sure that the
right goods and services find their way to interested consumers.
Answer:
Although we talk about close “relationships” between firms in business markets, in
practice it is just the relationship between the salesperson and purchasing manager that
becomes close.
Answer:
Although the total industry demand for business products may be inelastic, the demand
facing individual sellers may be extremely elastic.
Answer:
E-commerce refers to exchanges between individuals and organizations-and the
activities that facilitate those exchanges-based on applications of information
technology.
Answer:
According to the text, it’s best for the “channel captain” to be a producer rather than a
wholesaler or retailer.
Answer:
Consumers in less-developed nations have the income to support mass distribution.
Answer:
Target marketing aims a marketing mix at some specific target customers.
Answer:
The adoption curve shows when different groups will accept new ideas, assuming that
the promotion effort should stay the same for all groups.
Answer:
The popularity of blogs, online reviews, and other web media are giving “word of
mouse” even more impact than “word of mouth.”
Answer:
In most countries, small limited-line retailers still account for the majority of all
retailers.
Answer:
Retailers who follow a policy of “buy low and sell high” are practicing the
“mass-merchandising concept.”
Answer:
Using multiple interviews and background checks to select “born salespeople” works so
well that it almost guarantees success.
Answer:
E-commerce refers to exchanges between organizations (not individuals) and the
activities that facilitate those exchanges.
Answer:
Technology is making it harder to abuse consumers’ rights to privacy.
Answer:
Exporting is often the first step into international marketing.
Answer:
The sales manager’s decision to use new information technologies has costs as well as
benefits.
Answer:
A market research online community combines qualitative and quantitative approaches
in private online communities.
Answer:
Online interactive communication enables retailer websites to remember individual
customers and automatically recall their past purchases.
Answer:
A positioning analysis is a product-oriented approach.
Answer:
A job description is a written statement of what a salesperson is expected to do.
Answer:
Developing goodwill and stimulating demand are tasks performed by missionary
salespeople.
Answer:
The majority of U.S. firms use a one-price policy.
Answer:
To overcome the limitation of not being able to physically inspect a product before
purchasing online, many online retailers now provide photos and videos that
demonstrate the product.
Answer:
The Internet is making even straight rebuys more competitive.
Answer:
The ArrowPoint Company has just modified and enlarged its product line to meet the
changing needs of its current customers. This is an example of “market development.”
Answer:
Segmenting a broad product-market usually requires using several segmenting
dimensions at the same time.
Answer:
A business buyer who uses general purpose and/or specialized search engines may
reduce the need to arrange for custom-produced items.
Answer:
A market is a group of two or more sellers who offer substitute ways of satisfying
customer needs.
Answer:
The text argues that the plight of the homeless is a result of the forces of market
competition in our market-directed economies.
Answer:
Which of the following statements concerning secondary data is correct?
A. Secondary data usually takes longer to obtain than primary data.
B. Secondary data is only available within the firm.
C. Secondary data was originally collected for some other purpose.
D. Secondary data may provide some background, but never provides the answer.
E. None of these statements is correct.
Answer:
The law which focuses on the protection of trademarks and brand names is
A. the Lanham Act.
B. the Magnuson-Moss Act.
C. the Uniform Product Code Act.
D. the Federal Fair Packaging and Labeling Act.
E. None of these is a good answer.
Answer:
A producer and intermediaries sharing the cost of ads in local media is called:
A. comparative advertising.
B. cooperative advertising.
C. pioneering advertising.
D. campaign advertising.
E. institutional advertising.
Answer:
Marketing managers should recognize that:
A. product life cycles appear to be getting longer.
B. every segment within a market has the same product life cycle.
C. the product life cycle describes the sales and profits of individual products, not
industry sales and profits.
D. firms that enter mature markets have to compete with established firms for declining
industry profits.
E. None of these alternatives is correct.
Answer:
In ______ channel systems, ordering is routinized, inventory and sales information is
shared over computer networks, accounting is standardized, and promotion efforts are
coordinated.
A. contractual
B. traditional
C. administered
D. integrated
E. corporate
Answer:
The price that maximizes profit is the one that results in the greatest difference between
A. total cost and total fixed cost.
B. total revenue and total cost.
C. average cost and average variable cost.
D. total revenue and average variable cost.
E. total revenue and average fixed cost.
Answer:
Interest rates
A. often change with changes in the economy.
B. affect consumer markets, but not business customers.
C. usually decrease during periods of inflation.
D. do not directly affect the total price borrowers must pay for loans.
E. don’t affect the prices buyers pay.
Answer:
The MOST USEFUL dimensions for segmenting markets are:
A. geographic and demographic dimensions.
B. brand familiarity and consumption patterns.
C. social class.
D. benefits sought.
E. it depends on what product-market one is segmenting.
Answer:
The adoption curve
A. emphasizes the importance of securing the wholehearted cooperation of channel
members to promote the product in the channel and to the final user.
B. emphasizes the relations among groups and shows that individuals in some groups
act as leaders in accepting a new idea.
C. is any distraction that reduces the effectiveness of the communication process.
D. is the intentional coordination of every communication from a firm to a target
customer to convey a consistent and complete message.
E. puts more emphasis on technology and less on relationships.
Answer:
Regarding advertising, the Federal Trade Commission:
A. can require firms to run corrective ads.
B. can regulate deceptive advertising.
C. can require firms to support ad claims.
D. can require firms to provide affirmative disclosures.
E. All of these alternatives are correct.
Answer:
Use this information for question that refer to the Yummy Ice Cream case.
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company’s new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy’s ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy’s take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago, the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
Which of the following illustrates customer-initiated interactive communication?
A. People who enter Yummy’s online contest receive a “2 for 1” coupon for Yummy’s
new flavors
B. A customer goes to Yummy’s website to see if Yummy has an ice cream shop that is
nearby
C. A consumer goes to the CNN website and selects a video clip from World Cup
Soccer, but at the start of the clip there is a short ad that shows kids eating Yummy
Mondaes
D. A “gamer” at an online website ends a game and encounters a pop-up ad for Yummy
Fruit on a Stick
E. Consumers who participate in an online marketing survey are later called and
interviewed about which of Yummy’s ads they remember and why
Answer:
Which of the following is one of the three basic ideas in the “marketing concept?”
A. Resource efficiency.
B. Customer satisfaction.
C. Obtain economies of scale.
D. Maximize sales.
E. The president has a marketing background.
Answer:
Radio Shack is an example of what type of organizational customer?
A. Retailer
B. Producer
C. Government
D. Nonprofit
E. Wholesaler
Answer:
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
Answer:
The traditional communication process does NOT include:
A. response.
B. receiver.
C. encoding.
D. feedback.
E. source.
Answer:
____ refers to the total market value of all goods and services provided in a country’s
economy in a year by both residents and nonresidents of that country.
A. Gross output
B. Gross investment
C. Gross national income
D. Gross fixed capital formation
E. Gross domestic product
Answer:
Time-pressured, dual-career families are a prime target market for
A. specialty shops.
B. department stores.
C. door-to-door selling.
D. online shopping.
E. category killers.
Answer:
Consumers in a market-directed economy
A. enjoy limited freedom of choice.
B. are taxed to provide for goods and services that benefit society, such as public health,
national defense, highways, police and fire protection.
C. do not decide what is to be produced and by whom.
D. have to buy what is being produced.
E. do not have to buy any goods or services.
Answer:
The ____________ method of payment uses a percentage of dollar sales in calculating
compensation.
A. Bonus
B. Commission
C. Straight salary
D. Combination
E. Employee discount
Answer:
For coordinating logistics activities among firms, which of the following statements is
true?
A. Wholesalers in the channel should coordinate storage activities.
B. Competitive firms usually share logistics coordination similarly.
C. Retailers in the channel should coordinate transportation activities.
D. Firms may share logistics coordination in multiple effective ways.
E. Retailers in the channel should coordinate all storage and transport.
Answer:
In marketing, business and organizational customers are distinct from:
A. intermediaries
B. government units
C. final consumers
D. manufacturing and service firms
E. non-profit organizations
Answer:
Which of the following observations about advertising agencies is FALSE?
A. They are specialists in planning and handling mass-selling details for advertisers.
B. They are dependent on the advertiser and have a mixed viewpoint.
C. They may be full-service agencies who handle any activities related to advertising,
publicity, or sales promotion.
D. They may even handle overall marketing strategy planning.
E. They can often do the job more economically than a company’s own department.
Answer:
According to the text, to recruit, motivate, and keep good salespeople, a firm has to
A. provide encouragement by giving trophies and certificates.
B. give public recognition.
C. develop an effective compensation plan.
D. offer a promotion.
E. reinvent its marketing strategies.
Answer:
Use this information for question that refer to the Sunny Day Foods (SDF) Case.
For six months, Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing
manufacturer of organic foods. After graduating college, she worked for four years as a
sales rep for a nationally known food company. But, she jumped at the chance when
SDF contacted her about becoming marketing manager for its breakfast foods division,
which sells dry cereals and a pancake mix.
Kim spent the first few months on the job trying to better understand SDF, its product
line, and marketing strategy. She reviewed the company’s past marketing research,
commissioned new research, and talked to both consumers and retailers. Now, the CEO
of the company wants her thoughts on what the company’s marketing strategy should be
for the next few years.
Her research indicates that among cereal customers, there are at least five segments of
customers who use SDF products.
a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals.
These customers often go out of their way to visit a store with their favorite SDF cereal
and buy only that product at the store.
b) Another segment, the regulars, buys SDF cereals without much thought. For them it
is just part of their routine and, if you ask them why they pick the cereal, they’d say it’s
just a habit.
c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They
view all organic cereals as pretty much the same and buy whichever brand seems to
offer the best deal that week.
d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few
years ago the company took a strong stand in a presidential race-and these customers
resented it. Now, they boycott all SDF foods because of that incident.
e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but
who don’t have much awareness of particular organic brand names.
In reviewing how SDF currently brands its products, Kim sees that it is using several
different approaches. The Sunny Day Foods brand is used on most products the
company sells. But a few years ago the company brought out an instant organic oatmeal
with the Hot n Healthy name. SDF also makes cereal sold by a health food chain; the
package for that chain uses the store’s own name, Nature’s Foods, as the brand name for
the cereal.
Which of the following terms best describes the “Sunny Day Foods” brand?
A. Individual brand
B. Licensed brand
C. Dealer brand
D. Family brand
E. Private brand
Answer:
All of the following should be determined by the marketing department of a firm
EXCEPT:
A. storing the product.
B. making the product.
C. advertising the product.
D. designing the packaging for the product.
E. setting the price of the product.
Answer:
Given its interest in the broad product-market for “ready-to-eat, health-conscious snack
foods,” which of the following should the GoodHealth Foods Co. do FIRST?
A. Develop a plan for getting support from intermediaries.
B. Develop each of the four Ps at the same time.
C. Segment the product-market to try to identify homogeneous submarkets and select
an attractive target market.
D. Determine whether to compete on a price basis.
E. Decide what low-fat product or products it will offer.
Answer:
Sharper Blade Knife Company produces different knives in a range of prices. The
company tries to set a fair price level for each product and a marketing mix that gives
each target market superior value. Sharper Blade Knife is using:
A. flexible pricing.
B. value pricing.
C. F.O.B. pricing.
D. a bad strategy.
E. everyday low pricing.
Answer:
Charissa works at a computer software company where it is her responsibility to
determine the blend of promotion methods in a strategy decision. Which of the
following would most likely be her job title?
A. Marketing manager
B. Sales promotion manager
C. Advertising manager
D. Public relations manager
E. Sales manager
Answer:
In the _____ step of the adoption process, a consumer begins to give the product a
mental trial by applying it to his or her personal situation.
A. interest
B. confirmation
C. trial
D. decision
E. evaluation
Answer:
Offering a NONCUMULATIVE quantity discount seeks to:
A. reduce the seller’s shipping costs.
B. encourage bigger orders.
C. discourage small orders.
D. shift some of the storing function to the buyer.
E. All of these alternatives are correct.
Answer:
A S.W.O.T. analysis
A. focuses on what a firm plans to do to “Satisfy Wishes of a Target” customer.
B. summarizes a firm’s ‘strategy, wishes (of its customers), outlook, and tactics.”
C. helps defend against potential competitors by developing a set of competitive
‘safeguards, weapons, offensives, and tactics.”
D. identifies a firm’s ‘strengths, weaknesses, opportunities, and threats.”
E. seeks to reduce the risk of competitive surprises by scanning the market for ‘signals,
warnings, omens, and tips.”
Answer:
The response rate to a survey affects
A. who is in the population for a marketing research study.
B. whether a statistical package can be used to analyze the data.
C. how representative the sample is.
D. All of these alternatives are good answers.
Answer:
Dealer brands make up almost ______ percent of the products in U.S. grocery stores.
A. 10
B. 20
C. 30
D. 40
E. 50
Answer:
Segmenting international markets (as contrasted with domestic markets):
A. is more complicated because qualifying dimensions are not helpful.
B. may be more difficult because critical data may not be available or dependable.
C. usually involves less risk because more potential target markets are available.
D. usually involves fewer segmenting dimensions.
E. None of these alternatives is true.
Answer: