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Discretionary income is an elusive concept because the definition of necessities varies
from family to family and over time.
Answer:
Finding her favorite brand of shampoo temporarily out of stock, a supermarket shopper
is more likely to take part in routinized response behavior than limited problem solving.
Answer:
Marketing can be viewed as a social process, but not as a set of activities performed by
organizations.
Answer:
Market introduction, market growth, market maturity, and sales decline are the four
stages of the product life cycle.
Answer:
In addition to mail, direct-response promotion may include telephone, videos, e-mail,
and the Internet.
Answer:
A consumer's choice of a retail store appears to be based almost entirely on emotional
needs-economic needs have almost no influence.
Answer:
Attitudes are very good predictors of intention to buy.
Answer:
ISO 9000 is only relevant to domestic suppliers.
Answer:
The extent to which marketing research data measures what it is intended to measure is
known as the confidence level.
Answer:
More money (in the U.S.) is spent on advertising than on sales promotion.
Answer:
The money spent to improve quality should not only satisfy customers but also justify
the cost through improved profit.
Answer:
ISO 9000 reduces the need for a customer to conduct its own audit of a supplier's
quality procedures.
Answer:
Application of the product life cycle concept to retailing suggests that all types of
retailers are in early market growth due to continually increasing family income.
Answer:
Product advertising tries to sell a specific product, while institutional advertising tries to
promote an organization rather than a specific product.
Answer:
Producers with well-branded consumer products and well-established channels
typically emphasize personal selling-rather than advertising-in their promotion blends.
Answer:
Many nonprofit organizations try to set a price level that will earn a target return figure
of zero.
Answer:
The American Marketing Association's statement of ethics sets specific ethical
standards for many aspects of marketing.
Answer:
Procurement sites operate for the benefit of buyers by directing suppliers to them at one
convenient site.
Answer:
It is usually more difficult to provide consistent quality for goods as opposed to
services.
Answer:
Agents and brokers are wholesalers that take title to the merchandise and products that
they sell.
Answer:
Export or import agents are basically merchant wholesalers who specialize in
international trade.
Answer:
If a seller wanted to pay the delivery charges and keep title to the products until
delivered to a buyer, the seller could use "F.O.B. buyer's factory" geographic pricing
terms.
Answer:
Prospecting involves following all the leads in the target market to identify potential
customers.
Answer:
Publicity is any paid form of nonpersonal presentation of ideas, goods, or services by an
identified sponsor.
Answer:
A person who needs to purchase something usually completes a requisition.
Answer:
The three basic sales tasks are order-getting, order-taking, and supporting.
Answer:
Nike moved beyond shoes and sportswear to offer its athletic target market a running
watch, digital audio player, and even a portable heart-rate monitor. This is an example
of a market development strategy.
Answer:
Capital items which are more expensive and longer-lived than installations are called
accessory equipment.
Answer:
Chipotle has achieved success because its customers typically view the benefits of
buying its products as greater than the costs.
Answer:
Marketing should begin with the production process.
Answer:
The definition of a product-market includes a product type while the definition of a
generic market does not include a product type.
Answer:
Marketers no longer encounter differences among European countries.
Answer:
A "generic market" is a market in which sellers offer substitute products which are so
similar that customers see them as "all the same."
Answer:
A sales promotion can cost more than it adds in sales.
Answer:
The cost of environmental damage is now a measured cost of most firms that is passed
along to consumers.
Answer:
A broker's "product" is market information.
Answer:
Use of the scientific method in marketing research forces researchers to use an orderly
process.
Answer:
Clustering techniques can be used in segmenting to help find similar patterns within
sets of data-to identify homogeneous groups of people.
Answer:
The text credits Chipotle's marketing success to its great price.
Answer:
While developing a new marketing plan, Taco Bell is analyzing whether a collaborator
like Major League Baseball would be a good sponsor. This analysis should appear in
the ____ section of the marketing plan.
A. company
B. competitor
C. channel
D. Place
E. Promotion
Answer:
A cheese processor having regular need for regional storage of a large quantity of
cheese probably should use ______________ warehouses.
A. public
B. private
C. general merchandise
D. commodity
Answer:
Building quality into services:
A. can be easily accomplished by spending more.
B. can be accomplished without top-level support because it is such a simple idea.
C. is not necessary unless the service is guaranteed.
D. can be easily accomplished with surprise quality inspections.
E. can be improved by giving employees the authority to correct a problem on their
own.
Answer:
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.
Answer:
Intensive distribution is often very appropriate for:
A. shopping products and convenience products.
B. convenience products and business supplies.
C. business products of all classes.
D. unsought products and specialty products.
E. shopping, specialty, and unsought products.
Answer:
Convenience (food) stores:
A. have no competitors.
B. charge about the same prices as nearby supermarkets.
C. try to earn better profits by high margins on a narrow assortment which turns over
quickly.
D. offer greater width of assortment but less depth than most supermarkets.
E. none of these alternatives is correct for convenience (food) stores.
Answer:
Dealer brands, compared to manufacturer brands, usually offer wholesalers and
retailers:
A. less risk.
B. higher gross margins.
C. faster turnover at reduced selling costs.
D. products which are presold to target customers.
E. more prestige.
Answer:
The text says "markup" means percent of:
A. "mark-on."
B. selling price-unless otherwise stated.
C. fixed cost.
D. delivered cost-unless otherwise stated.
E. cost of sales.
Answer:
If a producer does not have a new-product development process, it ultimately means:
A. the firm lacks financial resources.
B. the firm does not want to be profitable.
C. the company will survive on current products until going out of business.
D. the firm is incapable of innovation.
E. the firm can survive on old products indefinitely.
Answer:
A public utility that has adopted the marketing concept would be most likely to
A. set up a special service to help consumers reduce expensive peak-hours energy
consumption.
B. lower prices until almost all consumers felt that prices were fair.
C. advertise its "public service role" to improve its image with the public.
D. use email to send customers a personal apology if a blackout were to occur.
E. None of these answers is true.
Answer:
Which of the following statements best describes the modern view of marketing?
A. Marketing is only necessary for profit-oriented firms.
B. Marketing consists mainly of advertising and personal selling.
C. Marketing anticipates customer needs.
D. Marketing begins as soon as products are produced.
E. Firms that don't rely on e-commerce should put more emphasis on marketing.
Answer:
Regarding the family life cycle, singles and younger couples without children
A. are more willing to try new products and brands.
B. tend to be carefree shoppers who are not very price-conscious.
C. often wait to buy basic durable goods until they have children.
D. feel more financially squeezed than couples with young children.
E. all of these are correct for singles and younger couples without children.
Answer:
Which of the following is the BEST example of "institutional advertising?"
A. "I'd walk a mile for a Pepsi"
B. "HP is THE standard for personal computers"
C. "Mobil gas makes your car perform better"
D. "Promise her anything but give her Obsession"
E. "Better living through pharmaceutical research"
Answer:
A wholesaler has been offering his customers payment terms of 3/10, net 60. He wants
to tighten his terms because interest rates have gone up. He could change his terms to:
A. 3/10, net 90.
B. 3/20, net 60.
C. 4/10, net 60.
D. 3/10, net 30.
E. None of these is a good answer.
Answer:
Which of the following statements is a strategy decision, rather than an operational
decision?
A. "We will change the colors of our selection of shirts at the end of the season."
B. "We will cut prices as needed to in order to protect our market share."
C. "We will increase the number of training sessions for new sales associates from two
to three."
D. "We will hire a merchandising specialist this month to help remodel our older
stores."
E. "We will place a special ad in the Sunday newspaper promoting our upcoming sale."
Answer:
Use this information to answer the following question that refer to the PSI case.
Pump Systems, Inc. (PSI) produces two major kinds of water pumps. The smaller
pumps range in price from $5-$30, and are used in drinking fountains and soft-drink
machines. Most of these pumps are bought by manufacturers of these machines and
built into their product. PSI also builds larger pumps used in swimming pools and
reservoirs. The prices of these items range from $250-$500. These are usually
purchased by contractors, who build the pools and reservoirs.
PSI sells nationally through sales reps located in the large industrial centers. These reps
handle the selling function for PSI in their geographic areas and provide market
information. They usually do the same thing for 10 to 20 similar manufacturers of
noncompeting products-and are paid on a commission basis.
There are no other producers of the smaller pumps in the United States-because PSI has
patent protection. As a result of this, management has decided to follow a policy of
pricing high-to maximize profits-while the patent lasts.
Several competitors are in the market for the larger pumps. Industry prices and profits
of these pumps have dropped in the past few years as a result of firms trying to increase
their market shares. The product design has remained fairly stable over the last few
years-and one firm dropped out as it saw that it would lose more money with its
"me-too" product. Industry sales are increasing-but at a very slow rate. The price of
these products is determined by adding a standard markup percentage to the variable
cost of the items-to cover fixed costs and profit. For instance, pump Z has variable costs
of $250 per unit, and a markup of 40 percent of this cost is added to the $250 to get its
selling price. Management has estimated that fixed costs applicable to this product are
$200,000 per year.
PSI publishes a product catalog which is revised annually. Also, it exhibits in most trade
shows. PSI follows a policy of charging the same price to all customers-so all will have
the same costs at their own plants. All purchases are shipped directly from PSI's factory
to its customers-and title passes at PSI's factory.
What kind of promotion is PSI using when it publishes catalogs and exhibits in trade
shows?
A. Advertising
B. Publicity
C. Sales promotion
D. Personal selling
Answer:
ESPN cable television offers numerous sports programs. What type of discrepancy does
this create for sports fans who want to watch only a few of the programs?
A. Discrepancy of assortment
B. Discrepancy of information
C. Discrepancy of quantity
D. Discrepancy of quality
E. Discrepancy of image
Answer:
During a 'situation analysis," a marketing researcher should:
A. collect primary data.
B. talk with competitors facing similar problems.
C. begin to talk informally to as many customers as possible.
D. study what information is already available.
E. All of these are good choices.
Answer:
Discrepancies of assortment happen when
A. producers prefer to produce and sell in large numbers, but consumers prefer to buy
and consume in smaller numbers.
B. consumers may not want to consume goods and services at the time producers would
prefer to produce them.
C. consumers value goods and services in terms of costs and competitive prices
whereas producers value them in terms of satisfying needs and ability to pay.
D. producers specialize in producing a narrow range of goods and services but
consumers need a wide variety.
E. producers hold title to goods and services that they themselves do not want to
consume.
Answer:
Which of the following statements about Place is true?
A. Most consumer products and most business products are sold to intermediaries who
then sell them to final customers.
B. Place decisions are usually harder to change than other marketing mix decisions.
C. There is always one Place arrangement that is "best" for a product.
D. A series of individuals who aid in the flow of goods and services from producer to
final customer is called a distribution network.
E. None of these statements about Place is true.
Answer:
L'Oreal advertises its hair color with the popular tagline, "So it costs a bit more. But I'm
worth it!" Here, L'Oreal's marketing effort focuses on satisfying what level in the
hierarchy of needs?
A. Social needs
B. Safety needs
C. Physiological needs
D. Personal needs
Answer:
Under the physical distribution concept, each of the following is coordinated as one
system EXCEPT:
A. delivery of manufactured products to storage.
B. storage of products before final delivery.
C. delivery of products to their final destination.
D. design of products according to specifications.
E. handling of products during transportation.
Answer:
Generation X refers to:
A. those born from 1978-1994
B. those born since 1994
C. those born from 1965-1977
D. those born from 1945-1964
E. those born before 1945
Answer:
Which of the following sales approaches is most to be suitable for simple order-taking?
A. Prepared sales presentation
B. Missionary sales approach
C. Consultative selling approach
D. Selling formula approach
E. Merchandising presentation
Answer:
Which of the following best illustrates "discrepancies of quantity"?
A. Michelin makes tires, but most consumers also want a large selection of car-care
services.
B. Some stores sell large quantities of Michelin tires, but only small quantities of tires
made by other companies.
C. There are over 310 million consumers in the U.S. but only a small portion buy tires
in any given year.
D. Four firms make over 90 percent of all the tires sold in the United States.
E. Michelin made millions of tires last year-but most customers bought only one set.
Answer:
The adoption curve emphasizes the relations among groups and shows that individuals
in some groups act as leaders in accepting a new idea.
Answer:
Advertising agencies are:
A. Large organizations employing many creative people.
B. Generalists in planning and handling mass-selling details for advertisers.
C. Independent of the advertiser and have an inside viewpoint.
D. Independent of the advertiser and have an outside viewpoint.
E. Under contract to one client at a time.
Answer:
Use this information for question that refer to the Super Gaming Company and
Accessories (SGCA) case.
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!"
About 10 years ago, most of SGCA's target customers did not even know what a sound
card was or that computer audio could be upgraded. What type of advertising was
needed at that time?
A. institutional advertising
B. reminder advertising
C. cooperative advertising
D. pioneering advertising
E. direct competitive advertising
Answer:
When dealing with consumer attitudes, marketers should know that:
A. it is usually easier to change a negative attitude about a product than to reinforce a
positive attitude.
B. consumer attitudes tend to be enduring.
C. attitudes are very good predictors of how people will behave.
D. consumer attitudes are less action-oriented than consumer beliefs.
E. none of these alternatives is correct.
Answer:
Which of the following is NOT a key dimension of buyer-seller relationships in
business markets?
A. legal bonds
B. relationship-specific recycling
C. cooperation
D. operational linkages
E. information sharing
Answer:
The triple bottom line is a measure of a firm's success based on multiple criteria
commonly referred to as:
A. product, price, and promotion.
B. people, planet, and profit.
C. partnership, planning, and positioning.
D. segmentation, targeting, and positioning.
E. brands, buyers, and bucks.
Answer:
