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Products that are meant for use in producing other products are __________ products.
A. convenience
B. shopping
C. specialty
D. unsought
E. business
Answer:
When rice producers from China sold rice for a lower price in Japan as compared to the
price charged in China, it appeared the Chinese rice producers were engaging in _____.
A. price fixing
B. phony price lists
C. agricultural rebate
D. overstocking
E. dumping
Answer:
When a firm produces a large quantity of a product, the cost of producing each
individual unit usually goes down. This is known as:
A. discrepancies of quantity.
B. exchange efficiency.
C. economies of scale.
D. macro-marketing.
E. discrepancies of assortment.
Answer:
Break-even analysis
A. assumes that the demand curve is perfectly horizontal at the selling price.
B. reveals the price that will earn the highest profit.
C. cannot be used for comparing several different alternatives (for example, assuming
different prices).
D. considers the effect of price on the quantity that consumers will want.
E. None of these alternatives is correct.
Answer:
Sales training:
A. usually isn't necessary if a new salesperson has had similar selling experience calling
on the same customers for a competing company.
B. programs should focus on product and company information-since research shows
that training is not effective in developing selling skills.
C. is usually needed only for new salespeople.
D. should include on-the-job observation, but classroom and web-based learning is
rarely needed.
E. None of these alternatives about sales training is true.
Answer:
When setting a price level policy, a good marketing manager knows that:
A. introductory price dealing usually does not increase sales.
B. a penetration price makes the most sense when there is a large "elite" market.
C. a 'skimming" price may lead to low profits if demand is very elastic.
D. it's easy to raise prices if the initial price is too low.
E. none of these alternatives is correct.
Answer:
Customer type
A. should be defined by identifying the buyer instead of the user.
B. should be assigned a nickname that describes all potential types of customers.
C. must always consider intermediaries even if they are not final users.
D. refers to the final consumer or user of a product type.
E. none of these alternatives is correct.
Answer:
A buyer who has not purchased from a vendor in the past is MOST LIKELY to buy
from that vendor when there is:
A. straight rebuy buying.
B. selective buying.
C. new-task buying.
D. selective task buying.
E. modified rebuy buying.
Answer:
Intermediaries are needed MOST when the desired degree of market exposure is:
A. selective.
B. intensive.
C. exclusive.
D. administered.
E. none of these is a good answer.
Answer:
Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that
had been handling its distribution in Canada. This is an example of:
A. dual distribution.
B. reverse distribution.
C. a contractual channel system.
D. vertical integration.
E. accumulating.
Answer:
Use this information to answer the following question that refer to the EI (Electech Inc.)
case.
Electech, Inc. (EI) produces a line of semiconductors for electronics products
manufacturers. These items range in price from $5-$100 and are used in products the
buyer is producing. EI also designs and builds computer networking equipment. The
prices of these items range from $5,000 to $100,000. These are used to control
production equipment. Usually, they are custom-made to the specifications of the
buyer-the firm that will use the product in its own production process.
EI sells nationally through independent sales reps-paid on commission-who work in the
large industrial centers across the country. EI is more concerned with the quality of
these reps than with the number of them. All of them also sell other lines. EI also uses
five full-time salaried salespeople who work out of its corporate headquarters under a
sales manager.
The home office salespeople are "technical specialists" who sell almost all the
networking equipment, while the "reps" mostly sell the semiconductors. Sometimes,
however, the reps will send in leads to customers who want networking equipment. EI
also sells some of its semiconductors through a Los Angeles wholesaler who carries
stock for West Coast customers.
There are many producers and importers of semiconductors in the U.S.-but several
firms have captured large shares of the networking equipment market. EI has held its
own, and in fact, over the past five years has increased its market share of these
products to over 25 percent-because of its better technical designs.
Industry-wide prices of the more or less homogeneous semiconductors have been
forced further and further down over the last seven years-as have industry profits. The
price of networking equipment is set by adding a standard markup percent to the direct
cost of the items-for overhead and for profit. Following industry practice, all prices are
quoted at the seller's factory.
EI publishes a catalog, which is revised periodically. Also, it exhibits in most equipment
trade shows.
In the EI case, in which stage of the product life cycle do semiconductors appear to be?
A. Market maturity
B. Sales decline
C. Market introduction
D. Market growth
Answer:
Marketing:
A. is concerned with whether the whole economic system is fair and effective.
B. applies only to profit organizations.
C. consists only of personal selling and advertising.
D. is a social process only.
E. tries to anticipate and satisfy customer needs and accomplish an organization's
objectives.
Answer:
The MOST COMMON method of setting the marketing budget is to
A. let internal politics decide.
B. estimate what competitors are spending.
C. determine the cost of the tasks to be accomplished.
D. use all uncommitted revenue.
E. use some predetermined percentage of past or forecast sales.
Answer:
Ceramics Distributing Co. wants to keep its inventory low. Which of the following
would be LEAST likely to encourage customers to take over more responsibility for the
storage function?
A. offering a cumulative quantity discount
B. offering a stocking allowance
C. offering a noncumulative quantity discount
D. offering a seasonal discount
Answer:
The _____ environment sets the basic rules for how a business can operate in society.
A. legal
B. social
C. economic
D. technical
E. cultural
Answer:
In psychographics AIO analysis, all of the following are examples of "activities"
EXCEPT:
A. age.
B. entertainment.
C. club membership.
D. shopping.
E. hobbies.
Answer:
When segmenting broad product-markets, cost considerations tend
A. to encourage managers to disregard the criterion that a product-market segment
should be substantial.
B. to lead to more aggregating.
C. to be unimportant as long as the segmenting dimensions are operational.
D. to lead to a large number of small, but very homogeneous, product-market segments.
E. All of these are true.
Answer:
Which of the following is not a variable associated with the cultural and social
environment?
A. Technological innovation
B. The role of women in society
C. Language
D. Attitudes on environmental issues
E. Education level
Answer:
_____ help(s) innovators develop hard-to-copy marketing strategies that will be very
profitable for a long time.
A. Opportunity segments
B. Competitive decisions
C. Breakthrough opportunities
D. Competitive marketing
E. Operational decisions
Answer:
Walgreens Drugstores advertises that its Tylenol prices are "the lowest in town" in order
to stimulate sales of other products along with Tylenol. This is an example of:
A. skimming.
B. value in use pricing.
C. bait pricing.
D. price lining.
E. leader pricing.
Answer:
The whole set of beliefs, attitudes, and ways of doing things of a reasonably
homogeneous group of people is a(n):
A. culture.
B. family.
C. evoked set.
D. social class.
E. reference group.
Answer:
All of the following are true of government markets except
A. the government is the largest customer group in all countries.
B. most government customers buy by specification using a mandatory bidding
procedure.
C. the government buyer must often accept the lowest bid that meets the specifications.
D. by law, a government unit might have to accept the lowest bid even for an unwanted
product.
E. government purchases are usually subject to much public review.
Answer:
Which of the following sales force payment methods is best for SIMPLICITY?
A. Salary plus bonus plan
B. Value plan
C. Combination plan
D. Straight salary
E. None of these, i.e., all are equal.
Answer:
Which of the following statements does not describe a command economy?
A. Government bureaucrats decide what and how much is to be produced.
B. A command economy is sometimes called a "planned economy."
C. Prices are set by the law of supply and demand.
D. Producers offer a highly limited assortment of goods and services.
E. The economy is found in countries like Iran and North Korea.
Answer:
Which of the following shows the correct sequence of market acceptance of a new idea,
as represented in the adoption curve?
A. Early adopters, innovators, laggards, early majority, late majority.
B. Early majority, late majority, early adopters, innovators, laggards.
C. Early adopters, early majority, late majority, innovators, laggards.
D. Innovators, early majority, late majority, early adopter, laggards.
E. Innovators, early adopters, early majority, late majority, laggards.
Answer:
Which of the following is NOT one of the sales presentation approaches discussed in
the text?
A. Prepared sales presentation
B. Selling formula approach
C. Consultative selling approach
D. Target market approach
E. None of these, i.e., all are discussed in the text.
Answer:
Some channel conflict may
A. be inevitable when channel members have different objectives.
B. be useful if that is what it takes for customers at the end of the channel to receive
better value.
C. be avoided when a producer does not sell identical products through different
(competing) channels.
D. be reduced if there is a channel captain who thinks about all of the members of a
channel and helps to direct their activities.
E. All of these alternatives are correct.
Answer:
Which of the following is a strategic decision area that is a part of the price component
of the marketing mix?
A. Physical good
B. Level over product life cycle
C. Salespeople selection and training
D. Warranty
E. Product lines
Answer:
A divorced dad commuting to work on a major highway notices a billboard for
McDonald's any-size $1 soft drink. This billboard is an example of a(n):
A. reinforcement.
B. response.
C. drive.
D. cue.
E. attitude.
Answer:
When business buyers purchase items such as grease, electricity, typing paper, and
paper clips, they are buying:
A. accessory equipment.
B. operating supplies.
C. components.
D. repair supplies.
E. maintenance supplies.
Answer:
Segmenting, in contrast to combining:
A. tends to focus more on customer similarities than on differences.
B. tries to identify homogeneous submarkets and develop different marketing mixes for
each submarket.
C. usually means settling for a smaller sales potential.
D. relies more on promotion appeals and minor product differences to create general
customer appeal among several submarkets.
E. All of these are true statements except usually means settling for a smaller sales
potential.
Answer:
In a firm's hierarchy of objectives, the top-level objectives that guide all other
objectives are known as:
A. R&D objectives.
B. company objectives.
C. price objectives.
D. personal selling objectives.
E. marketing objectives.
Answer:
Gun control is an example of a micro-macro dilemma.
Answer:
A firm's "marketing mix" decision areas would NOT include:
A. Price.
B. Promotion.
C. Product.
D. Place.
E. Profit.
Answer:
A "penetration pricing policy":
A. is the same as a "meeting competition" price-level policy.
B. is wise when demand is fairly inelastic-offering an "elite" market.
C. involves temporary price cuts to speed new products into market.
D. involves a series of step-by-step price reductions along an inelastic demand curve.
E. may be wise if a firm expects strong competition very soon after its product
introduction.
Answer:
