Drop-shippers:
A. are used because it is cheaper for producers to ship to them by rail and let the
drop-shipper drop the products off at local retailers with small trucks.
B. never take title to the products they sell.
C. typically sell large shipments, e.g., rail carloads.
D. have very high operating expenses.
E. are full-service merchant wholesalers.
Lars Sorenson is a college student who needs to purchase a suit for job interviews. In
the past his father has helped him buy suits. This time, he is the sole decision maker and
is paying for the $450 suit with money he earned at his part-time job. Lars is concerned
about good fit and good value so he visits several stores before making his purchase.
For Lars, this situation seems to be one of:
A. Routinized response behavior.
B. Low involvement purchasing.
C. Extensive problem solving.
D. Limited problem solving.
E. Adoption purchasing.
Which of the following transportation modes is “best” at handling a variety of goods?
A. Truck
B. Rail
C. Water
D. Air
E. Pipeline
Which of the following statements about telemarketing is False?
A. Customer response to telemarketing is the same in both business markets and final
consumer markets.
B. Telemarketing can extend personal selling efforts to new target markets.
C. Telemarketing can save time and money for the seller.
D. Telemarketing can increase the frequency of contact with current customers.
E. Telemarketing can provide needed support for customers in e-commerce situations.
Which of the following is unique to export-import brokers, differentiating them from
general brokers?
A. They usually have a temporary relationship with the buyer and seller while a
particular deal is negotiated.
B. They specialize in bringing together buyers and sellers from different countries.
C. They are especially useful when buyers and sellers do not come into the market very
often.
D. They earn a commission from whichever party hired them when the transaction is
completed.
E. The broker’s product is information about what buyers need and what supplies are
available.
According to the text, the two basic approaches to price setting are
A. supply-oriented and demand-oriented price setting.
B. cost-oriented and demand-oriented price setting.
C. sales-oriented and profit-oriented price setting.
D. cost-oriented and profit-oriented price setting.
E. average-cost pricing and break-even analysis.
The text discusses the evolution of business through five “eras.” Which of the following
is NOT one of these eras?
A. Diversification era
B. Sales era
C. Production era
D. Marketing company era
E. Simple trade era
A producer sells an item to a wholesaler for $4.00, and the wholesaler uses a markup of
25 percent on its selling price and the retailer uses a markup of 30 percent on its selling
price. What will be the retailer’s selling price to its customers?
A. $7.61
B. $7.55
C. $7.36
D. $7.24
E. $7.12
Supermarkets are
A. stores offering “hard goods” at substantial price cuts to customers.
B. large, self-service stores with many departments that emphasize ‘soft goods” and
staples but still follow the discount house’s emphasis on lower margins to get faster
turnover.
C. large stores specializing in groceries with self-service and wide assortments.
D. very large stores that try to carry not only food and drug items but all goods and
services that the consumer purchases routinely.
E. a convenience-oriented variation of the conventional limited-line food stores.
The whole set of beliefs, attitudes, and ways of doing things of a reasonably
homogeneous set of people is called a(n):
A. personal environment.
B. culture.
C. motivation.
D. learned set.
E. opinion set.
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.
What basic promotion objective can be sought by a producer who has won brand
insistence among its target customers?
A. Persuading
B. Reminding
C. Informing
D. Communicating
E. Promoting
Which of the following is NOT an advertising decision?
A. Who the target audience is.
B. What kind of advertising to use.
C. Who will do the work.
D. Which media to use.
E. What types of coupons will be used.
Emil Flores won’t buy any coffee except “Blue Mountain”a relatively expensive type
that few stores sell. He used to have to drive about 10 miles out of his way to buy it at a
small shopbut now he has persuaded his local supermarket manager to handle this
coffee. For him, this coffee is
A. an emergency product.
B. a specialty product.
C. a staple product.
D. an unsought product.
E. a heterogeneous shopping product.
_____ looks at when money will be available.
A. Cash flow
B. Profit and loss
C. Balance sheet
D. Net profit
E. Gross margin
Which of the following is not a selective process used in gathering and interpreting
information from the world around us?
A. Selective exposure
B. Selective perception
C. Selective retention
D. Selective attention
The “continuum of environmental sensitivity” suggests that:
A. some products are more adaptable to international markets than others.
B. it is extremely risky to sell basic commodities in international markets.
C. industrial products need to be adapted more than consumer products for international
markets.
D. All of these statements about the continuum of environmental sensitivity are true.
A _____ is a financial report that forecasts how much cash will be available after
paying expenses.
A. cash flow statement
B. reconciliation statement
C. workflow analysis
D. balance sheet
E. capital expenditure report
_____ NOT the government’s job in a market-directed economy.
A. Protecting property and enforcing contracts are
B. Regulating radio and television broadcasting is
C. Setting import and export rules is
D. Determining what and how much is to be produced is
E. Controlling interest rates and the supply of money are
Caught between the threat of antitrust action, stockholder demands, and public interest
groups, some large corporations set a(an) ______________ pricing objective.
A. increasing target return
B. “aggressive” competition
C. profit maximization
D. increasing market share
E. satisfactory long-run target return
When a department store manager decides to make a personal shopper available to its
career-oriented female shoppers, this is a decision about:
A. Product.
B. Place.
C. Promotion.
D. Price.
Charlie Ferragamo is a sales representative for the Season-All Spice Company, and sells
spices to large food service operations and restaurants. Charlie used to be able to justify
selling his products for a higher price than the competition because he believed his
spices were of higher quality. However, now the demand for individual brands of spices
has become very elastic because buyers perceive few differences among the brands.
One of Charlie’s regular customers told Charlie that another spice company offered him
a significantly lower price on spices, and he asked if Charlie could match the price.
Charlie said, “I have to see a written price quote from the competitor. If I lower my
price without seeing the price quote, I could be accused by my other customers of
engaging in ________________.”
A. dumping
B. price discrimination
C. price fixing
D. zone pricing
E. None of these is a good answer
Which of the following statements about advertising on the Internet is(are) true?
A. When a website sets fees based on actual sales, it is setting fees in the same manner
as traditional media.
B. Most Internet ads seek a delayed response.
C. As with traditional media, getting lots of exposure is all that matters.
D. Most ads try to get advertisers to click-through to the firm’s website.
E. None of these statements is true.
Channel systems in which the various channel members make little or no effort to
cooperate with each other are called ______________ systems.
A. traditional channel
B. vertically integrated
C. direct-to-customer channel
D. franchising
E. administered channel
Which of the following statements about electronic data interchange is FALSE?
A. Inventory information is automatically updated.
B. EDI has not yet spread to international markets.
C. A customer transmits its order information directly to the supplier’s computer.
D. EDI is very common in the United States.
E. EDI puts information into a standardized format.
Jiffy Cake Mix Company developed a new brownie mix that is much improved over its
current brownie mix. When a sales representative for Jiffy contacted a buyer for a major
supermarket chain, the buyer demanded that Jiffy give the supermarket chain a
combination of cash and free cases of goods whose total value exceeded the entire
marketing budget Jiffy planned to spend on the new brownie mix during its first year on
the market. When the sales representative from Jiffy protested, the buyer said, “It is
company policy to get ______________ in order to secure shelf space for new brands.”
A. push money
B. advertising allowances
C. quantity discounts
D. stocking allowances
E. sale prices
Which of the following statements about the legal environment in the United States is
not true?
A. Individual managers are not subject to criminal penaltiesonly their employer can be
punished.
B. Consumer protection laws are not new.
C. Many laws try to promote competition among firms.
D. A commission has authority to oversee product safety.
E. The Food and Drug Administration controls manufacturers of these products.
The “business-to-business” market (B2B market) is comprised of:
A. nonprofit organizations only.
B. wholesalers and retailers only.
C. manufacturers only.
D. all businesses, governments, and nonprofits.
E. government units only.
Which of the following observations concerning F.O.B. pricing is not true?
A. Typically, it names the place.
B. F.O.B. shipping point pricing may narrow the market.
C. F.O.B. shipping point pricing complicates the seller’s pricing.
D. If a firm wants to pay the freight for the convenience of customers, it can use F.O.B.
delivered.
E. A firm can use F.O.B. buyer’s factory if it wants to pay the freight.
_____ is the ability to produce a certain quantity and quality of specific goods or
services.
A. Economies of scope
B. Production capacity
C. Production possibility curve
D. Economies of scale
E. Marketing capability
Liz Edwards is a sales associate for a major retailer of high-quality cooking supplies,
housewares, and furniture. She is paid an hourly wage, plus she gets an additional sum
of money that is a percentage of the dollar sales of all the sales associates combined
during the hours that she works. Liz is working under a(n)
________________________ compensation plan.
A. Straight salary
B. Combination
C. Straight commission
D. Incentive
E. None of these is a good answer
A _____ is the salesperson’s request for an order.
A. close
B. prospect
C. sales quota
D. job description
E. proposal
Which of the following consumer products is most likely to be classified as
“unsought”?
A. Tablet computer
B. Tires
C. Life insurance
D. Band aids
E. House paint
“Good” market segments are those that are:
A. homogeneous between.
B. heterogeneous within.
C. operational and substantial.
D. international in nature.
E. All of these choices are correct.
A consumer product that a customer really wantsand is willing to make a special
shopping effort to findis
A. a staple product.
B. a convenience product.
C. a heterogeneous shopping product.
D. a specialty product.
E. an emergency product.