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According to learning theory, a cue is likely to result in a consumer response only if
there is a drive to satisfy.
Answer:
The fastest rate of growth in GDP is occurring in the nations with the largest current
GDP.
Answer:
In cooperative relationships in a business market, the buyer and seller work together to
jointly achieve both mutual and individual objectives.
Answer:
Low price and high customer value are one and the same thing.
Answer:
Marketing discourages the development and spread of new ideas, goods, and services.
Answer:
Consumer products that are bought often, routinely, and without much thought are
staples.
Answer:
In the new-product development process discussed in the text, the burden is on the
new-product idea to prove itself or be rejected.
Answer:
A "market development" opportunity would involve a firm offering new or improved
products to its present markets.
Answer:
The profit potentials of alternative strategic plans can be evaluated at the same time
only if the plans are very similar.
Answer:
Advertising effectiveness is usually very difficult to measure because sales result from
the total marketing mix, not just advertising.
Answer:
Product managers or brand managers are most often found in firms with only one or a
few related products.
Answer:
A product idea may be in different life-cycle stages in different markets.
Answer:
Limited problem solving is used by consumers when some effort is required in deciding
the best way to satisfy a need.
Answer:
If a retailer adds a 25-cent markup to a product which costs the retailer $1.00, then
according to the text the retailer's markup is 20 percent.
Answer:
It is very common for manufacturers to concentrate in certain geographic areas and by
type of industry.
Answer:
Exporters usually work with specialists who can handle international problems such as
customs, taxes, exchange rates, and shipping.
Answer:
Pricing a product sold in a foreign market lower than the cost of producing it is called
dumping.
Answer:
The sale of candy from a vending machine at a bus station is not considered retailing
since no store is involved.
Answer:
A "Product" might involve a physical good, a service, or a combination of the two.
Answer:
The adoption curve concept suggests that some groups within a market tend to be
leaders in accepting new ideas.
Answer:
Status quo pricing objectives might focus on meeting competition, avoiding
competition, or stabilizing prices.
Answer:
Break-even analysis evaluates whether the firm will be able to cover all its costs with a
particular price.
Answer:
Reverse channels are used when multichannel distribution fails.
Answer:
With ISO 9000 someone is responsible for quality at every step.
Answer:
Marginal analysis focuses on the changes in average fixed cost per unit and average
variable cost from selling one more unit to find the most profitable price and quantity.
Answer:
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.
Answer:
A seller's marketing mix should satisfy BOTH the needs of the customer company and
the needs of individuals in the buying center.
Answer:
The U.S. does not have the largest population of any country in the world, but it does
have the largest population growth rate.
Answer:
A sales-oriented pricing objective seeks some level of unit sales, dollar sales, or share
of market-without referring to profit.
Answer:
Marketing managers should set overall advertising objectives, but then it's usually the
advertising manager's job to set specific objectives for each ad.
Answer:
Qualitative research seeks structured responses that can be summarized in numbers, like
percentages, averages, or other statistics.
Answer:
Like final consumers, organizations make purchases to satisfy specific needs, but their
basic need is for goods and services that will help them satisfy their own customers or
clients.
Answer:
A S.W.O.T. analysis identifies the 'special weapons or tactics" used by the competitor in
a product-market that has the most profitable marketing mix.
Answer:
Micro-marketing often does cost too much because many firms improperly blend the
four Ps and misunderstand both their customers and the market environment that affects
their operation.
Answer:
Dimensions that should be considered when segmenting consumer markets are:
geographic location and other demographic characteristics, behavioral needs, urgency
to get needs satisfied, and willingness to compare and shop.
Answer:
With the "multiple target market approach" the marketer combines two or more
homogeneous submarkets into one larger target market as a basis for one strategy.
Answer:
"Scrambled merchandising" refers to the practice of conventional retailers handling
many products within a limited-line, even though many of these products have to be
sold at a low profit.
Answer:
In a joint venture, a domestic firm enters into a partnership with a foreign firm.
Answer:
A situation analysis is a formal study of what information is already available in the
problem area.
Answer:
Which country limits the use of political ads on TV?
A. USA
B. Canada
C. New Zealand
D. Japan
E. Australia
Answer:
Publicity efforts:
A. Attempt to attract attention to the firm without having to pay media costs.
B. Can be more effective than advertising if a firm has a really new message.
C. Can be more useful than advertising in helping a customer solve a problem.
D. All of these alternatives are true.
Answer:
Retailing on the Internet:
A. makes it hard for consumers to compare products or prices.
B. is limited to only a few mass-merchandisers.
C. makes it possible to get to an almost unlimited assortment of products.
D. is not expected to grow very fast.
E. all of these alternatives are correct.
Answer:
When a website places a small file (containing information about the visitor) on the
computer of people who visit its site, this file is called a(n):
A. product.
B. cookie.
C. reminder.
D. cooperative.
E. institution.
Answer:
A firm's sales training should cover:
A. professional selling skills.
B. building relationships with customers.
C. company policies and practices.
D. product information.
E. all of these alternatives are correct.
Answer:
Regarding markups and turnover:
A. high markups usually lead to high profits.
B. speeding turnover usually decreases profits.
C. items sold at low markups (e.g., 20 percent) cannot be profitable.
D. depending on the industry-a stockturn rate of 1 or 2 may be quite profitable.
E. All of these alternatives are correct.
Answer:
A generic market description should NOT include any:
A. customer needs.
B. geographic area.
C. competitors' names.
D. customer types.
E. all of these should be included in a generic market description.
Answer:
Which of the following is LEAST LIKELY to be found in a production-oriented firm?
A. Disagreements among departments about how to improve the company's product.
B. Making products that are easy to produce.
C. Producing goods that exactly meet the customer's needs.
D. A mass marketing approach.
E. None of these is likely to be found in a production-oriented firm.
Answer:
A "dealer brand" is sometimes called a __________ brand.
A. national
B. local
C. manufacturer
D. private
E. regional
Answer:
Regarding adopter groups, which of the following statements is TRUE?
A. Innovators rely on the mass media and salespeople.
B. The early majority usually aren't opinion leaders.
C. Laggards rely primarily on opinion leaders.
D. Early adopters make little use of salespeople.
E. The late majority make the most use of salespeople.
Answer:
What is left of income after paying for taxes and paying for necessities?
A. Net income.
B. Real income.
C. Deductible income.
D. Gross income.
E. Discretionary income.
Answer:
According to the Federal Trade Commission (FTC), a new product:
A. Is only new for twelve months.
B. Is only new for two months.
C. Is entirely new or changed in a functionally different or substantial respect.
D. Is something that is new in any way for the company concerned.
E. None of these is a good answer.
Answer:
Chris Carmine manages specific products and promotion at Bright-n-Shiny Toothbrush
Company. Her job responsibility sounds like that of a ________.
A. brand manager
B. project coordinator
C. channel manager
D. sales representative
E. marketing research manager
Answer:
White Sands Heavy Equipment Co. produces industrial equipment that it sells through
its national sales force. Its sales reps often must negotiate with customers to match the
low prices of foreign competitors. Apparently, the firm has
A. an "F.O.B.-Seller's Factory" price policy.
B. been violating the Robinson-Patman act.
C. a skimming price policy.
D. a status quo pricing objective.
E. a flexible-price policy.
Answer:
A firm intends to use an online survey questionnaire in a marketing research project.
Compared to a mail survey:
A. feedback will likely be faster online.
B. the response rate will likely be lower online.
C. respondents will likely be younger and better educated online.
D. costs will likely be less online.
E. all of these alternatives are correct.
Answer:
Whitewater Corp. is looking for a new vendor for basic plastics because the present
vendor has been inconsistent about meeting delivery schedules. Which of the following
buying processes is the firm's purchasing agent MOST LIKELY to use?
A. Selective buying
B. Modified rebuy buying
C. Intensive buying
D. New-task buying
E. Straight rebuy buying
Answer:
The difference between target marketing and mass marketing is that target marketing
A. means focusing on a small market.
B. focuses on short-run objectives, while mass marketing focuses on long-run
objectives.
C. focuses on specific customers, while mass marketing aims at an entire market.
D. does not rely on e-commerce but mass marketing does.
E. aims at increased sales, while mass marketing focuses on increased profits.
Answer:
Which of the following promotional objectives is most likely being accomplished when
a real estate agent sends her customers a yearly calendar containing the agent's business
logo?
A. Planning
B. Informing
C. Reminding
D. Persuading
E. Rebutting
Answer:
Fevor Inc. and Linvar Inc. are firms operating within the same industry. Fevor responds
to customer complaints after its customers communicate their problems. However,
Linvar does not wait for its customers to complain. Instead, the company monitors
customers' online activity, collecting big data from social media - learning what
problems exist and resolving them before complaints come in. Which of the following
can be best concluded from this scenario?
A. Fevor Inc. follows a proactive approach, while Linvar Inc. follows a reactive
approach to customer service.
B. Fevor Inc. focuses on retaining existing customers, while Linvar Inc. focuses on
damage control.
C. Linvar Inc. focuses on retaining existing customers, while Fevor Inc. focuses on
damage control.
D. Fevor Inc. follows a reactive approach, while Linvar Inc. follows a proactive
approach to customer service.
E. Both companies utilize a proactive approach to customer retention.
Answer:
GreatGadgets, an Internet-based marketer of innovative gift items, decides to sell
products in its own retail stores-to reach consumers who don't like to buy without first
seeing the item in person. This is an example of:
A. market development.
B. diversification.
C. market penetration.
D. product development.
Answer:
The reason that MICRO-marketing costs too much in many firms is that:
A. the marketing concept has not been accepted and implemented.
B. most new products are not necessary to meet competition.
C. marketing is not really needed.
D. advertising is usually ineffective.
E. None of these-marketing never costs too much.
Answer:
Which of the following is not a basic kind of market (competitive) situation?
A. Pure competition
B. Oligopoly
C. Capitalistic competition
D. Monopolistic competition
E. Monopoly
Answer:
"Personal selling:"
A. involves direct spoken communication between sellers and potential customers.
B. costs less than advertising for reaching a large, widespread market.
C. tries to communicate with many customers at the same time.
D. refers to "promoting" at trade shows, demonstrations, and contests.
E. All of these alternatives for "personal selling" are correct.
Answer:
With respect to buyer-seller relationships in business markets,
A. relationships benefit sellers, but not customers.
B. some customers simply are not interested in a close relationship with a supplier.
C. customer firms are better off selecting suppliers with competitive bids rather than
establishing a relationship with a single vendor.
D. None of these alternatives is true.
Answer:
Given the nature of their work, which of the following should have a marketing
orientation?
A. Girl Scouts of America.
B. Dallas-Fort Worth Symphony.
C. American Cancer Society.
D. University of Wisconsin.
E. All of these organizations should have a marketing orientation.
Answer:
Having segmented its broad product-market, Blue Chip, Inc. feels that three segments
are similar enough that-together-they can be treated as one large target market and
offered the same marketing mix. Blue Chip, Inc. is following the ______________
approach.
A. mass marketing
B. multiple target market
C. combined target market
D. single target market
E. None of these alternatives is correct.
Answer:
Tango with Nature Inc., a company that manufactures and sells body oils, aroma oils,
essential oils, and organic personal care products to spas around the globe, has decided
to launch a website with an online store for its organizational customers. How will this
decision most likely affect the company?
A. The decision will not affect the company in any manner as service customers avoid
Internet buying.
B. The company's customer service efforts will reduce.
C. The company will lose its value in the market.
D. The company will limit its interactions with its organizational customers.
E. The purchases by small service customers can add up, creating a new market for
Tango.
Answer:
When the manager of a Denny's Restaurant offers a customer a coupon for a free meal
as compensation for slow service, the manager is focusing on:
A. differentiation.
B. product development.
C. short-term profits.
D. a diversification strategy.
E. customer lifetime value.
Answer:
Gabriella Sax believes that customers in her dress shop find certain prices very
appealing. Between these price levels, all prices are seen as roughly the same-and price
cuts in these ranges generally do not increase the quantity sold (i.e., the demand curve
tends to drop vertically within these price ranges). Therefore, Sax prices her items as
close as possible to the top of each such price range. This is:
A. bait pricing.
B. prestige pricing.
C. leader pricing.
D. psychological pricing.
E. odd-even pricing.
Answer:
Games would most likely be used as a publicity mechanism for achieving which of the
following promotional objectives?
A. Getting attention and holding interest
B. Managing ongoing customer relationships
C. Arousing desire and obtaining action
D. Minimizing customer service complaints
E. Developing a desired positioning
Answer:
Consumers are more likely to be price sensitive when _____.
A. it is not easy to compare the prices of different goods
B. the marginal cost of production is zero
C. the price of the good is very low
D. they have many substitute ways of meeting a need
E. someone else pays the bill or shares the cost
Answer:
Organizational buyers:
A. rely on many sources of information in addition to salespeople when making
purchase decisions.
B. may use vendor analysis to make certain that all relevant areas of a purchase
decision have been considered.
C. are likely to do little search for additional information if the purchase is unimportant.
D. tend to be more rational-and less emotional-in their buying decisions than final
consumers.
E. All of these alternatives about organizational buyers are true.
Answer:
