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Product class does not vary by country.
"Demand-backward pricing" involves a producer estimating an acceptable final
consumer price and working backward to determine what the producer can charge in
the channel.
Mass selling includes both advertising and publicity.
In the seven-step approach, submarkets are nicknamed based on the determining
dimensions and a description of the customer types.
Moral standards often vary from one person to another, from one society to another, and
among different groups within a society, so there is likely to be disagreement about
what opinion is correct when it comes to marketing ethics.
By 2010, advertising expenditures in the United States were more than $200 billion.
Door-to-door selling now accounts for less than 1 percent of retail sales in the United
States.
Retailers and their strategies can easily be classified based on the type of merchandise
they sell.
Most Internet ads seek a delayed response.
With the Internet, even very small specialized firms can draw customers from all over
the world.
In the U.S., the regulation of "deceptive" and "unfair" advertising is the responsibility
of the Federal Trade Commission.
Any series of firms (or individuals) from producer to final user or consumer is a
channel of distribution.
Since marketing managers have to be able to evaluate research results, they should be
involved in the design of research projectseven though they may not be research
specialists.
Pricing to achieve profit maximization always leads to high prices.
Publicity is any paid form of nonpersonal presentation of ideas, goods, or services by an
identified sponsor.
Sales promotions can usually get sales results sooner than advertising.
One new way to deliver customer service is to set up online communities where
customers help each other with problems.
Estimating what price consumers are willing to pay for a product and if the firm can
make a profit selling at that price, is an example of a production activity.
The "wheel of retailing" theory fails to explain some major retailing developments,
such as vending machines and convenience food stores, which did not enter the market
with a low-price emphasis.
Sales and profits generally decrease continually throughout the product life cycle.
Personal selling, mass selling, and sales promotion are all included in the Promotion
area of the marketing mix.
The worldwide trend toward urbanization has prompted increased interest in
international markets.
Direct marketing is primarily concerned with Promotion, not Place.
Discrepancies of assortment occur because individual producers tend to specialize in
producing a large assortment of products while individual consumers prefer to buy a
small assortment of products.
Shopping products are products that are purchased immediately when the need is great.
In a command economy, producers generally have little choice about what goods and
services to produce.
New-product development usually fits into the old routines of a firm, so it is not
necessary for top management to support new-product development in any special way.
Discretionary income is the income from investments.
To compete in the government market, it is very important that marketing mixes are
well matched with different bid procedures.
The universal functions of marketing include buying, selling, transporting, storing,
standardization and grading, financing, risk taking, and market information.
Market penetration means trying to increase sales of a firm's present products in its
present markets--probably through a more aggressive marketing mix.
The product life cycle concept is concerned with planning for product recycling to
protect the environment.
Which of the following statements about ethical behavior in business is true?
A. The legal environment sets the highest standards of ethical behavior.
B. The legal environment sets the maximum standards of ethical behavior.
C. The legal environment sets the minimum standards of ethical behavior.
D. The legal environment sets the normative standards of ethical behavior.
E. None of these statements about ethical behavior is true.
Dimitri Kojak works for a producer of industrial elevators. He knows all the technical
details of the many different ways they are used by business customers. He makes
presentations to new prospects and eventually gets a share of their business. Dimitri is:
A. a member of the firm's major accounts sales force.
B. a missionary salesperson.
C. a technical specialist.
D. a producer's order getter.
E. a customer service rep.
A selective distribution policy might be used to avoid selling to wholesalers or retailers
that:
A. Place orders that are too small.
B. Make too many returns.
C. Request too much service.
D. Have poor credit.
E. All of these alternatives are correct.
Sales jobs are a major part of the U.S. economy. About what percentage of employed
workers in the U.S. are in some type of sales job?
A. 2 percent
B. 5 percent
C. 10 percent
D. 15 percent
E. 20 percent
A producer of electrical parts in Kansas City wants to expand into the West Coast
marketwhere price competition is tough. It probably should use:
A. F.O.B. mill pricing.
B. uniform delivered pricing.
C. zone pricing.
D. freight absorption pricing.
Frustrated by a lack of freedom to make decisions at her work, Betty quit her job to find
one with greater independence. What type of need motivated Betty's actions?
A. Psychological
B. Social
C. Physiological
D. Economic
E. Cultural
When a buyer receives an invoice for $100 with terms of "2/15 net 30" he can expect to
pay:
A. $100 if he pays anytime in the first 30 days.
B. less than $100 if he pays during the first 15 days.
C. $100 if he pays anytime during the first fifteen days.
D. more than $100 if he pays from day fifteen through day thirty.
E. the full $100 if he waits more than 30 days to pay.
Which of the following statements about doing a situation analysis is correct?
A. There is very little government data on business and commercial markets.
B. Doing a good situation analysis is usually much less expensive than collecting
primary data.
C. There is little value to having a marketing researcher involved because a good
marketing manager is able to do what is required.
D. Doing a good situation analysis usually takes much longer than gathering primary
data.
E. None of these statements about doing a situation analysis is true.
In which quadrant of the SWOT analysis tool does the following fit? A firm is falling
behind in research and development.
A. Strengths.
B. Weaknesses.
C. Opportunities.
D. Threats.
_________ covers all of the activities involved in the sale of products to final
consumers.
A. Distributing
B. Retailing
C. Manufacturing
D. Wholesaling
E. Marketing
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 "Hot 'n Healthy" brand?
A. Manufacturer brand
B. Individual brand
C. Family brand
D. Generic product
E. Private brand
Product type determining dimensions
A. are generally relevant to purchasing behavior.
B. affect the customer's purchase of a specific product brand.
C. affect the customer's choice of a specific kind of product.
D. are relevant to including a customer type in the product-market.
E. are less specific than qualifying dimensions.
A firm is looking to construct a new office. It puts out a request for proposals from
contractors inviting their price quotations given certain defined specifications. This is
an example of:
A. bid pricing.
B. odd-even pricing.
C. psychological pricing.
D. leader pricing.
E. price lining.
Business products tend to be sold direct to customers because compared to consumer
products:
A. business markets have more transactions.
B. orders are smaller in size.
C. e-commerce systems can efficiently handle orders once relationships are established.
D. customers are usually widely dispersed across geographic areas.
E. business products always use direct distribution.
Quantitative marketing research
A. usually makes it easier and faster for respondents to answer the questions (compared
to qualitative research).
B. can use a large, representative sample.
C. data can be collected by mail, e-mail, online, telephone, or personal interviews.
D. makes it easier for the research analyst to summarize answers.
E. All of these choices are correct.
Regarding new-task organizational buying, which of the following are likely to be
involved?
A. Top managers.
B. Purchasing manager.
C. Production process engineers.
D. Production line supervisors.
E. All of these are likely to be involved in new-task organizational buying.
Regarding markups and turnover:
A. supermarket operators have found that high-margin products are generally more
profitable than low-margin products.
B. higher markups always lead to higher profits.
C. low stockturn rates increase costs by tying up working capital in inventory.
D. to earn higher profits, all firms should lower their markups and seek faster turnover.
E. None of these alternatives is correct.
The development of new types of retailers can be best explained by applying:
A. the rule of franchising.
B. target marketing and product life cycle concepts.
C. the corporate chain hypothesis.
D. the wheel of retailing theory.
E. the law of retail gravitation.
A marketing manager who wants to apply the "hierarchy of needs" model should keep
in mind that:
A. most consumers are already satisfied and promotion will be needed to "create a
need."
B. the same marketing mix might satisfy two or more levels of need.
C. not enough attention is focused on physiological needs.
D. 'social needs" focus on the psychological variables in consumer behavior.
E. None of these alternatives is correct.
with regards to the Hispanic population, which of the following is not true?
A. About 23% of all children under 18 are Hispanic.
B. About 20% of the U.S. population is Hispanic.
C. In 2010, the Hispanic population of the U.S. was about 50.5 million.
D. Hispanics are the largest ethnic group in the U.S.
E. Hispanics are the fastest growing ethnic group in the U.S.
Which of the following is MOST LIKELY to be a DETERMINING dimension with
respect to purchase of a particular brand of coffee?
A. Taste.
B. Income.
C. Age.
D. Sex.
E. None of these is likely to be a DETERMINING dimension in this situation.
Regarding wholesalers, which of the following types has the LOWEST costs as a
percent of sales?
A. Specialty wholesalers
B. Merchant wholesalers
C. Manufacturers' sales branches
D. Agent wholesalers
E. Service wholesalers
Identify the incorrect statement about market-directed economies.
A. A market-directed economy adjusts itself.
B. The American economy is completely market-directed.
C. Consumers in a market-directed economy decide what is to be produced and by
whomthrough their dollar "votes."
D. Consumers in a market-directed economy enjoy great freedom of choice.
Which of the following qualities of packaging would not be likely to turn a casual
customer into a loyal buyer?
A. Makes the product easier or safer to use
B. Makes a product convenient to store
C. Prevents spoiling or damage
D. Makes products easier to identify
E. Promotes the brand at the point of purchase
Brainstorming is an important part of the _________ step in the seven-step approach for
segmenting product-markets.
A. "Identifying the determining dimensions"
B. "Identifying potential customers' needs"
C. "Forming homogeneous submarkets"
D. "Select the broad product-market"
E. "Estimate size of each product-market segment"
The three basic tasks of ALL managers, according to the text, are:
A. planning, staffing, and evaluating.
B. marketing, production, and finance.
C. execution, feedback, and control.
D. hiring, training, and compensating.
E. planning, implementation, and control.
An established merchant wholesaler of business supplies would rely mainly on:
A. merchandisers.
B. order takers.
C. order getters.
D. supporting salespeople.
E. missionary salespeople.
Which of the following is not a challenge related to social responsibility?
A. There is little agreement on who gets to determine what is "good" for society.
B. Actions that may seem good for society may be costly to a firm.
C. Some consumers make purchases based on the perceived societal benefits of a
product or service.
D. It is impossible to know what impact a firm's actions will have on future generations.
E. Acting to satisfy one group of stakeholders may anger another group of stakeholders.
Fidelity Corp. earned a 6 percent return on investment last year and wants to increase it
to 10 percent this year. Which of the following pricing objectives is Fidelity seeking?
A. Target return
B. Growth in sales
C. Growth in market share
D. Maximize profits
E. Nonprice competition
Large department stores such as Macy's saw their peak sales during which time period?
A. 1900s
B. 1920s
C. 1950s
D. 1970s
E. 2000s
Identify the INCORRECT statement about marketing research.
A. Most small companies have a separate marketing research department.
B. People in marketing research departments often rely on outside specialists.
C. Some nonprofit organizations have begun to use marketing research.
D. Marketing managers should be involved in design of marketing information system.
E. Marketing research may involve use of questionnaires, interviews with customers,
experiments, etc.
Uniform delivered pricing is most often used when
A. transportation costs are relatively high.
B. the seller wishes to sell in all geographic areas at one price.
C. the seller does not wish to have a nationally advertised price.
D. an average freight charge becomes illogical.
E. F.O.B. shipping point pricing is preferred.
Which of the following best illustrates communication "noise"?
A. A TV ad is recorded at a higher volume than is used for most TV shows.
B. A motorist doesn't hear a radio ad because she is being stopped by a police officer for
speeding.
C. A political candidate rides through town in a car with a loud speakerasking
pedestrians to vote for her.
D. Magazine sales reps telephone consumers to offer low-price subscriptions.
E. A Pepsi ad that has rap music in the background.
"Product" means:
A. A physical good or service which offers potential customer satisfaction.
B. A physical good with all its related features.
C. The entire physical output of a firm.
D. All of the elements in a firm's marketing mix.
E. Something that has been produced, packaged, branded, and given a warranty.
