The step of the personal selling process in which a salesperson contacts a potential
customer is called:
a. making the presentation.
b. following up.
c. the preapproach.
d. the approach.
e. prospecting.
Differential pricing means different buyers pay different prices for the same quality and
quantity of product.
a. True
b. False
An advertising platform is the:
a. basic issue or selling point that an advertiser wishes to include in an advertising
campaign.
b. objective of the advertising campaign stated in precise and measurable terms.
c. form in which the basic issues of the campaign should be presented.
d. broad objectives of the advertising campaign.
e. group of customers on whom research is conducted regarding the use of the product
being advertised.
Social responsibility is an organization’s obligation to maximize its positive impact and
minimize its negative impact on society.
a. True
b. False
The___________characteristic of a service denotes the fact that production and
consumption of the service occur
simultaneously.
a. intangibility
b. heterogeneity
c. customer contact
d. perishability
e. inseparability
Air-Tech management learns that last month’s production run of heaters at its Newark
plant is defective and announces a recall of the specific models produced. To handle the
large number of products it expects to receive for replacement of the defective
thermostats, Air-Tech will probably need to add a___________to its
distribution network.
a. distribution center
b. private warehouse
c. dispatching shipment system
d. public warehouse
e. materials handling system
During the market orientation, businesspeople realized that products, which by this time
could be made relatively efficiently, would have to be promoted through much personal
selling and advertising.
a. True
b. False
Ferner Inc. is one of the largest manufacturers of agricultural machinery in the world.
Ferner Inc.’s strong name recognition and solid customer demand for its farm and
garden equipment are two elements of the company’s
_____.
a. weaknesses
b. opportunities
c. strengths
d. threats
e. strategies
A market is a group of individuals and/or organizations that have needs for products in
a product class and have the ability, willingness, and authority to purchase these
products.
a. True
b. False
In managing customer relationships, the three primary ways profits can be obtained are
by:
a. acquiring new customers, enhancing the profitability of new customers, and
shortening the duration of relationships with existing customers.
b. enhancing the profitability of existing customers, eliminating customers who provide
smaller profits, and finding new customers.
c. extending the length of relationships with customers, cutting organizational costs, and
enhancing the profitability of new customers.
d. eliminating long-term customers who have decreased purchases, finding new
customers, and increasing sales to existing customers.
e. enhancing the profitability of existing customers, extending the duration of
relationships with customers, and obtaining new customers.
When off-price retailers obtain too much in-season, high-quality merchandise, tension
between manufacturers and________builds.
a. discount stores
b. category killers
c. specialty retailers
d. warehouse clubs
e. department stores
Fiona is a wholesaler who buys greeting cards from Hallmark Cards Inc. and resells
them by maintaining displays of greeting cards in drugstores and discount stores. Her
daily activities include straightening the cards, pulling outdated or slow sellers, and
installing new cards. Fiona is called a(n)_________.
a. specialty-line wholesaler
b. full-service stocker
c. in-store maintainer
d. assembler
e. rack jobber
Rather than wait for legislation to be passed regarding Internet rules, many web
advertisers attempt self-regulation to govern how consumer information is collected and
used online.
a. True
b. False
Dawn is concerned that there are not enough buyers in Centerville to support her Quilts
Unlimited store. Her business adviser suggests that she should not limit her promotion
to the Centerville population but also consider out shoppers. This approach is most
likely to work if her store is located in a:
a. freestanding location.
b. traditional business district.
c. strip center.
d. community shopping center.
e. regional shopping center.
A brand usually requires a producer to become involved in distribution, promotion, and
pricing decisions.
a. dealer
b. manufacturer
c. private distributor
d. store
e. wholesaler
Scenario3.1 Meyers’ Sporting Goods, a national chain, has been doing business with
Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the
attention of Meyers’ financial director that the average cost per Soljur Sports skateboard
had substantially increased over that of the previous year. The financial director asked
the marketing department if they knew what the Soljur skateboards cost at competing
sporting goods stores, to see
if they too were likely hit with a higher cost.
The marketing department found that the Soljur skateboards were priced at $15 less in
the competing store than at Meyers. The financial director found that Soljur Sports was
selling a similar number of skateboards to one of Meyers’ competitors for $10 less per
skateboard. The attorney for Meyers’ Sporting Goods immediately filed a complaint
with the Federal Trade Commission. Suppose that the Soljur Sports company was
actually discriminating against Meyer Sporting
Goods with its price increase. Which of the following acts prohibits this type of
business behavior?
a. Sherman Antitrust Act
b. Wheeler-Lee Act
c. Robinson-Patman Act
d. Celler-Kefauver Act
e. Consumer Goods Pricing Act
The unification of Europe permits virtually free trade among the member nations of the
European Union.
a. True
b. False