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When Hallmark designs its website so that a teenage girl can send a theme card to her
boyfriend's cell phone, what is the primary segmenting dimension that Hallmark is
using?
A. Rate of use
B. Age
C. Family size
D. Income
E. Education
Order takers:
A. are not necessary if the firm has good order getters.
B. are the routine contact people in the sales force.
C. usually don't call on customers.
D. do not require any specialized training.
E. All of these alternatives are correct.
A marketing manager has just learned about generic markets. This may lead the
manager
A. to see a larger set of potential competitors.
B. to put less emphasis on market penetration or market development opportunities and
more emphasis on product development opportunities.
C. to think about new ways of satisfying the needs of her current customers.
D. All of these alternatives are correct.
The best marketing opportunity for a consumer products producer is in:
A. California.
B. Florida.
C. New York.
D. Texas.
E. It depends on the marketing strategy.
By definition, a brand name may not include:
A. the company name.
B. the product name.
C. words.
D. groups of words.
E. symbols and pictures.
Qualifying dimensions
A. need to be very specific.
B. help identify the "core benefits."
C. work in isolation in marketing strategy planning.
D. affect the customer's purchase of a particular product.
E. affect the customer's brand choice.
A S.W.O.T. analysis includes:
A. strengths.
B. weaknesses.
C. opportunities.
D. threats.
E. all of these are included in a S.W.O.T analysis.
Jim Meadowmont works for Sony. He doesn't take orders from customers, but he is
extremely knowledgeable about the entire Sony product line and about how its
specifications compare to the competition's products. He helps a regular Sony
salesperson by providing details about how Sony's products work, and knows the
customer applications for which the products are best suited. Jim is a(n):
A. Order getter.
B. Technical specialist.
C. Missionary salesperson.
D. Order taker.
E. Sales manager.
Which of the following statements is FALSE in regard to borrowing money?
A. In general, the greater the risk associated with a loan the greater the interest rate
charge will be.
B. Interest expense on a loan may impact prices and profits.
C. Borrowing money is usually less expensive than reinvesting cash generated from
operations.
D. A company with a successful marketing strategy has its own internal source of
fundsprofits.
E. None of these is false.
Many Internet sites, such as Autobytel.com and Edmunds.com, have extensive
information about the prices of new and used vehicles that anyone can use for free. In
light of the availability of this information, what is the responsibility of consumers to
use it?
A. Consumers shouldn't use it because it gives them an unfair advantage over car
dealers.
B. Consumers have a responsibility to use the information and be smarter customers.
C. Consumers can use it, but should not feel a responsibility to do so.
D. Consumers should not trust any information they receive from any source except the
government.
E. None of these alternatives is correct.
In a market-directed system:
A. the emphasis lies in optimizing the rate of production.
B. the government decides what products should be produced to meet the people's
needs.
C. firms do not rely on customer satisfaction as it is impossible to measure.
D. customer satisfaction has very little importance.
E. it is up to each customer to decide how effectively individual firms satisfy his or her
needs.
Which of the following is an example of a FUNCTIONAL cost account?
A. Auto repairs
B. Advertising
C. Taxes
D. Social Security
E. Any of thesebecause functional accounts include any costs which are used in the
normal preparation of a company's operating statement.
Which of the following statements does not accurately characterize new-product
development?
A. New-product development is costly.
B. Some companies move too fast to launch a new product.
C. Some companies move too slow to launch a new product.
D. New-product development has a high risk of failure.
E. New-product development has a low risk of failure.
Which of the following is NOT a franchise operation?
A. Midas Muffler
B. Panera Bread
C. Jiffy Lube
D. True Value Company
E. Taco Bell
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
Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories
(SGCA), is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming
stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide,
but in California is carried in only 10 percent of stores. So, Kayla has set an objective of
being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits
its target market of teen and young adult gamers. The SuperDuperGamer uses a new
technology and is expected to be a breakthrough product, but it will be important to
build awareness for it to succeed. So, the advertising objective is for 40% of SGCA's
target market to be aware of the new SuperDuperGamer model within 3 months. SGCA
also wants to help its retailers reduce their current stock of SuperGamer computers
before the new model comes out in a month. The SuperGamer has been on the market
for two years and has been a top seller in the category. SGCA's advertising objective for
the SuperGamer computer is to reduce current dealer stock by 80% within the next
month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to
significantly enhance the game-playing experience with older computers. Research with
gamers show that it is very well received, so the advertising objective for the
SuperEnhancer sound card is to gain 40% market share among all gaming-specific
sound cards in the next year. To help achieve that objective, Jurgenson is planning to
use an ad that shows the sound card and a game player being knocked off his chair by
the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the
SuperEnhancer Sound Beats All Others!"
In evaluating the copy thrust of its ad for the SuperEnhancer sound card, Jurgenson
should consider:
A. whether the ad gets attention.
B. the quality of the illustrations in the ad.
C. the media to be used.
D. the advertising objectives.
E. All of these should be considered.
Regarding sales force training,
A. it is rarely necessary to take a successful and experienced sales rep out of the field
for a training program.
B. every new sales rep should go through all parts of a firm's training program, so that
nothing is missed.
C. training programs should focus on company policies and product information, since
sales presentation skills are best learned in the field.
D. selling skills are best learned with interactive web training programs.
E. None of these alternatives is true.
Combiners (as opposed to segmenters):
A. try to satisfy target customers "very well" rather than "pretty well."
B. try to develop a different marketing mix for each submarket.
C. want to avoid "inviting" competition.
D. are not target marketersthey aim at everybody.
E. try to increase the size of their target markets by combining two or more market
segments.
If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of
shavers in Japan for a 5 percent royalty on all sales, it would be using:
A. licensing.
B. joint venturing.
C. management contracting.
D. exporting.
E. direct investment.
In the market introduction stage
A. the main job is to persuade customers to buy, and keep buying, the company's
product.
B. the basic promotion objective is informing.
C. more competitors enter the market.
D. promotion emphasis shifts from building primary demand to stimulating selective
demand.
E. mass selling and sales promotion dominate the promotion blends of consumer
products firms.
Averages are useful for summarizing databut only analyzing "averages" may be
misleading according to:
A. the "iceberg principle."
B. AIDA.
C. hypothesistesting theory.
D. the "law of central tendency."
E. the "50/50" rule.
At Home Depot, a customer can purchase a gallon of one-coat paint that contains the
ingredients for both a primer and a color. What is the primary economic need being
satisfied by this type of paint?
A. Dependability in use
B. Economy of purchase
C. Improvement of earnings
D. Convenience
Regarding Internet advertising:
A. Search ads know what customers are looking for based on the keywords that
customers use in a search.
B. Ads can be delivered to customers based on which other websites customers have
visited.
C. Most ads try to get customers to click-through to the firm's website.
D. Most advertisers pay only if ads deliver.
E. All of these alternatives are correct.
"Place" is concerned with:
A. getting the product to its intended market.
B. intermediaries located between producers and consumers.
C. where, when, and by whom goods are offered for sale.
D. when and where products are wanted.
E. all of these might be involved with Place.
Customer value typically would NOT be impacted by a marketing manager's decisions
concerning:
A. product.
B. place.
C. promotion.
D. price.
E. Any of these might impact customer value.
All of the following are key dimensions of relationships in business markets EXCEPT:
A. cooperation.
B. information sharing.
C. operational linkages.
D. non-specific adaptations.
E. legal bonds.
AsianArt4U.com brings together the art produced by many different Asian painters and
sculptorsand offers them for sale on its website. This is an example of
A. accumulating
B. sorting
C. a franchise channel
D. a discrepancy intermediary
E. bulk-breaking
Consider the following demand schedule for a product:
As the quantity demanded/sold increases from 3 units to 4 units, what is the marginal
revenue?
A. $25.
B. $50.
C. $750.
D. $900.
E. $150.
A business products producer which has given its salespeople the right to adjust prices
when necessary to get new business is using a ______________ policy.
A. flexible-price
B. target-return pricing
C. penetration pricing
D. one-price
E. skimming pricing
Some consumers maintain a "price-quality association," meaning that if a product has a
high price, they assume the product must have high quality. This "price-quality
association" is the basis for the use of:
A. Odd-even pricing.
B. Prestige pricing.
C. Leader pricing.
D. Reference pricing.
E. Price lining.
Trade shows are a sales promotion device usually aimed at promoting products or
services to:
A. Final consumers.
B. Business/industrial customers.
C. A firm's own employees.
D. Salespeople.
E. None of these is a good answer.
Working capital would be used to pay for:
A. employee salaries.
B. marketing research.
C. advertising.
D. storing.
E. All of these.
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.
A firm acquiring another firm at a different level of activity within a channel of
distribution is called:
A. vertical integration.
B. a tying contract.
C. dual distribution.
D. horizontal integration.
E. a regrouping activity.
