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Scientists or engineers-who may have little interest in sales but do provide technical
assistance to order getters-are called technical specialists.
Answer:
The "wheel of retailing" theory says that new retailers enter the market as high-status,
high-margin, high-price operators and then evolve into discount stores as competition
becomes more intense.
Answer:
The buying power of Hispanics and African Americans exceeds $1 trillion a year.
Answer:
In 1980, the median age of the U.S. population was 37.
Answer:
Brand familiarity means how well customers recognize and accept a company's brand.
Answer:
The most trusted sources of Promotion are forms of sales promotion, not publicity or
advertising.
Answer:
Reverse channels may provide a way to retrieve unwanted products from
intermediaries, business customers, or final consumers.
Answer:
Consumer buying decisions are affected by social influences such as motivation,
perception, learning, attitudes, and personality.
Answer:
Voluntary chains like SuperValu in groceries are wholesaler-sponsored groups that work
with "independent" retailers.
Answer:
In the U.S., almost as many people are employed in sales work as they are in
advertising.
Answer:
Push money allowances are intended to make the retailers' salespeople sell particular
products very aggressively.
Answer:
Dealer brands are brands created by producers.
Answer:
The market maturity stage of the product life cycle rarely lasts more than one or two
months.
Answer:
One reason manufacturers' sales branches handle over 25 percent of wholesale sales is
that they are located in the best market areas.
Answer:
According to a survey of workers, almost half of them have admitted to taking some
type of unethical or illegal action in the recent past.
Answer:
Discrepancies of quantity and assortment occur because individual producers find it
economical to produce and sell small quantities of a large assortment of products while
individual consumers prefer to buy large quantities of a small assortment of products.
Answer:
The universal functions of marketing include buying, selling, transporting, storing,
standardization and grading, financing, risk taking, and market information.
Answer:
When a seller uses "zone pricing," all customers who are in the same zone are charged
the same freight charge-even if the actual shipping cost varies.
Answer:
In a command economy, producers generally have little choice about what goods and
services to produce.
Answer:
With auction companies, demand and supply interact to determine the price.
Answer:
Manufacturers' agents are usually much less expensive than a company's own sales
force in market areas where sales potential is low.
Answer:
Telephone selling (telemarketing) to consumers is still extremely popular despite the
National Do Not Call Registry.
Answer:
The market introduction stage of the product life cycle is usually marked by losses, as
money is being invested in the hope of future profits.
Answer:
Effective market segmentation is a two-step process that starts with naming broad
product-markets and then goes on to segmenting these broad product-markets into more
homogeneous submarkets.
Answer:
The task method of budgeting bases the budget on the job to be done now, not on what
was spent in the past.
Answer:
Direct-response promotion usually relies on a customer relationship management
database to target specific prospects.
Answer:
For short distances and higher-value products, trucks may charge higher rates, but
provide slower service.
Answer:
It is primarily the sales manager's job to decide what types of information technology
tools salespeople need and how they will be used.
Answer:
When a firm makes a total company effort to satisfy its customers, and profit-not just
sales-is an objective of the firm, the company is practicing the "marketing concept."
Answer:
The marketing strategies for the two shoe retailers Payless and Zappos are very
different but both are successful.
Answer:
Catalog wholesalers usually sell to business customers who don't have a local
wholesaler or otherwise are not called on by other wholesalers.
Answer:
Leader pricing is typically used with well-known, widely used items which are not
stocked heavily by consumers.
Answer:
Advances in e-commerce, transportation, and communications have had little impact on
creating international opportunities.
Answer:
A consumer interested in making a low involvement purchase is most likely to use
"limited problem solving"-rather than one of the other levels of problem solving.
Answer:
It is still possible for a firm to earn a profit if it operates in the sales decline stage of the
product life cycle.
Answer:
Sometimes micro-macro dilemmas arise because what is "good" for some producers
and consumers may not be "good" for society as a whole.
Answer:
The owners of all the Chrysler auto dealerships in a large metropolitan area have an
informal meeting during a golf outing. During the meeting, they agree to limit their
orders of a new model of automobile that has received excellent reviews from the trade
press for its styling and handling characteristics. Restricting orders will permit the
dealers to sell these models at a price that will be at or above the manufacturer's
suggested retail price for the vehicle. As a result, the dealers will make more profit on
each vehicle sold due to the high demand for the new model. This type of agreement
would be viewed by the courts as:
A. Horizontal collusion that is illegal.
B. Horizontal collusion that is legal.
C. Vertical collusion that is legal.
D. Vertical collusion that is illegal.
E. An exclusive distribution arrangement that is legal.
Answer:
A marketing manager might greatly improve his marketing mix by:
A. shifting the storing job to a specialized storage facility.
B. adjusting the time products will be held by channel members.
C. encouraging final consumers to store some products for future consumption.
D. sharing the storage function (and costs) with intermediaries.
E. All of these would improve the marketing mix.
Answer:
Jan Alvarez works for a cable TV company in a large city. She makes telephone calls
during the early evening and tries to sell cable services to nonsubscribers. Jan is
A. a technical specialist.
B. a sales promotion specialist.
C. an order taker.
D. an order getter.
E. a customer service rep.
Answer:
When CenturyLink attracts residential customers by setting one monthly fee for
high-speed Internet, cable TV, and long-distance phone services that is $40 less than the
price of purchasing these three services separately, this is an example of:
A. Reference price
B. Price line
C. Bundle price
D. Leader price
E. Demand-backward price
Answer:
Collaborators
A. specialize in trade rather than production.
B. usually have a production orientation.
C. emerged in the marketing company era.
D. are only used in a command economy.
E. facilitate or provide one or more of the marketing functions other than buying or
selling.
Answer:
Regarding automatic vending, which of the following statements is TRUE?
A. It is important for soft drinks, candy bars, and snack foods.
B. Costs are relatively high because the machines are expensive to stock and repair.
C. Although its growth has been spectacular, automatic vending still accounts for less
than 2 percent of total U.S. retail sales.
D. A major advantage is customer convenience.
E. All of these statements about automatic vending are TRUE.
Answer:
Combiners
A. look at various submarkets for differences rather than similarities.
B. try to increase the size of their target markets by merging two or more segments.
C. aim at one or more market segments and offer each different marketing mixes.
D. have decided to sacrifice profits for sales volume.
E. aim at one submarket with a specialized marketing mix.
Answer:
Customer service reps help:
A. customers buy.
B. the company win customers.
C. when a customer has technical questions that an order taker can't answer.
D. the company keep customers.
E. all of these alternatives are correct.
Answer:
Once the compensation level for a producer's salespeople has been set, the particular
METHOD of payment depends on the:
A. need for incentive.
B. setting of sales quotas.
C. desire for simplicity.
D. need for control.
E. All of these alternatives are correct.
Answer:
When consumers screen out or modify ideas, messages, and information that conflict
with previously learned attitudes and beliefs, this is called:
A. cognitive perception.
B. selective perception.
C. selective retention.
D. conscious perception.
E. selective exposure.
Answer:
"Discrepancies of quantity" means:
A. there are more producers than consumers.
B. there are more consumers than producers.
C. the difference between the product lines the typical producer makes and the
assortment wanted by consumers or final users.
D. consumers want more products than producers can make.
E. the difference between the quantity of products it is economical for an individual
producer to make and the quantity normally wanted by individual consumers or users.
Answer:
A train carries truck trailers long distances. The trailers are then offloaded, attached to
truck tractors, and the tractor-trailer combinations are driven to their final destination.
This practice is known as:
A. containerization.
B. piggyback service.
C. freight forwarding.
D. long hauling.
E. None of these choices is correct.
Answer:
A producer sells an item to a wholesaler for $4.00, and the wholesaler uses a markup of
25 percent on its selling price. What will be the cost to the retailer?
A. $4.75
B. $4.87
C. $5.03
D. $5.33
E. $5.45
Answer:
Herbal Essences tries to sell its hair shampoos and conditioners to adult women, ages
18-24. These women represent Herbal Essences' primary:
A. marketing strategy.
B. 4 Ps.
C. target market.
D. marketing mix.
E. channel of distribution.
Answer:
Use this information to answer the following question that refer to the EI (Electech Inc.)
case.
Electech, Inc. (EI) produces a line of semiconductors for electronics products
manufacturers. These items range in price from $5-$100 and are used in products the
buyer is producing. EI also designs and builds computer networking equipment. The
prices of these items range from $5,000 to $100,000. These are used to control
production equipment. Usually, they are custom-made to the specifications of the
buyer-the firm that will use the product in its own production process.
EI sells nationally through independent sales reps-paid on commission-who work in the
large industrial centers across the country. EI is more concerned with the quality of
these reps than with the number of them. All of them also sell other lines. EI also uses
five full-time salaried salespeople who work out of its corporate headquarters under a
sales manager.
The home office salespeople are "technical specialists" who sell almost all the
networking equipment, while the "reps" mostly sell the semiconductors. Sometimes,
however, the reps will send in leads to customers who want networking equipment. EI
also sells some of its semiconductors through a Los Angeles wholesaler who carries
stock for West Coast customers.
There are many producers and importers of semiconductors in the U.S.-but several
firms have captured large shares of the networking equipment market. EI has held its
own, and in fact, over the past five years has increased its market share of these
products to over 25 percent-because of its better technical designs.
Industry-wide prices of the more or less homogeneous semiconductors have been
forced further and further down over the last seven years-as have industry profits. The
price of networking equipment is set by adding a standard markup percent to the direct
cost of the items-for overhead and for profit. Following industry practice, all prices are
quoted at the seller's factory.
EI publishes a catalog, which is revised periodically. Also, it exhibits in most equipment
trade shows.
What kind of products are EI's networking equipment?
A. Component parts
B. Accessory equipment
C. Installations
D. Raw materials
E. Supplies
Answer:
Considering weight, which one of the following transporting modes usually has the
LOWEST cost?
A. Waterways
B. Airways
C. Trucks
D. Railroads
E. Pipelines
Answer:
Marketing research:
A. is an organized way of gathering and analyzing information marketing managers
need.
B. involves a wide range of techniques including Internet search, customer surveys, and
more.
C. is a department in most small companies.
D. is only needed by producers who have long channels of distribution.
E. is an alternative to a marketing information system.
Answer:
The scientific method
A. rejects the idea that marketing managers can make "educated guesses" about
marketing relationships.
B. is an orderly way of presenting your point of view.
C. assumes that statistical analysis provides the only basis for rejecting an hypothesis.
D. is a hit-or-miss approach.
E. None of these alternatives is correct.
Answer:
The Horizons Cycle Shop bought 3 motorcycles for $2,100, and sold each one for
$1,000. The markup percent was:
A. 33 1/3.
B. 30.
C. 142.
D. 50.
E. There is not enough information to tell.
Answer:
The BEP, in units, can be found by dividing
A. total fixed costs by the fixed cost contribution per unit.
B. total variable costs by the variable cost contribution per unit.
C. total variable costs by the fixed cost contribution per unit.
D. the assumed selling price per unit by the variable cost per unit.
E. total variable costs by total fixed costs.
Answer:
A good reason for developing or joining a vertical marketing system
A. is that the whole channel focuses on the same target market at the end of the channel
and seems to be more effective.
B. market competition at each level of the channel eliminates inefficient firms and
serves consumers' needs better.
C. is that no member of the channel has to bear the costs of the regrouping activities.
D. is that no member of the channel has to plan for the whole channel since good
decisions at each level run the channel.
E. All of these are good reasons for developing or joining a vertical marketing system.
Answer:
An outside sales force can provide customers with up-to-date inventory levels, product
prices, delivery dates, and so forth by accessing information on the firm's own:
A. marketing model.
B. marketing dashboard.
C. intranet.
D. JIT system.
E. EDI system.
Answer:
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.
Answer:
A "buying center"
A. may vary from purchase to purchase.
B. refers to all the purchasing agents in a large firm.
C. is usually identified on a firm's organization chart.
D. is usually controlled by the purchasing manager.
E. is usually located in major wholesale markets.
Answer:
Multiple buying influence should be expected in:
A. vendor buying.
B. straight rebuy buying.
C. modified rebuy buying.
D. new-task buying.
E. none of these alternatives is correct.
Answer:
Which of the following is a strategic decision area that is a part of the component of
place in the marketing mix?
A. Product lines
B. Quality level
C. Market exposure
D. Promotion blend
E. Allowances
Answer:
Which of the following is a characteristic of agent wholesalers?
A. They are more common in domestic trade than in international trade.
B. They operate at relatively high costs.
C. They own the products they sell.
D. They normally specialize by customer type and by product or product line.
E. None of these is a characteristic of agent wholesalers.
Answer:
A college student on her way to take an exam remembers that she doesn't have a pencil
with an eraser-which the instructor asked everyone to bring. The store where she stops
doesn't have regular pencils-but it does sell Scripto mechanical pencils priced at $2.95.
That is what she buys. This case illustrates the effect of:
A. personal environment.
B. culture.
C. purchase situation.
D. learned set.
E. dissonance.
Answer:
Which of the following is NOT true about the supply chain for Ford Motor Company?
A. The supply chain includes the Ford dealers that sell its cars to consumers.
B. The supply chain does not include production plants where Ford cars are built.
C. The supply chain includes a tire supplier to Ford's production plants.
D. The supply chain includes a company that sells rubber to Ford's tire supplier.
E. The supply chain includes trucks that deliver cars to Ford dealers.
Answer:
Regarding product life cycles, good marketing managers know that:
A. all competitors lose money during the sales decline stage.
B. they are getting longer.
C. industry sales reach their maximum during the market growth stage.
D. firms earn their biggest profits during the market introduction stage.
E. industry profits reach their maximum during the market growth stage.
Answer:
Which of the following is the correct sequence of steps in the marketing research
process?
A. Getting problem-specific data; interpreting data; defining the problem; analyzing the
situation; solving the problem.
B. Analyzing the situation; getting problem-specific data; interpreting data; defining the
problem; solving the problem.
C. Defining the problem; getting problem-specific data; interpreting data; analyzing the
situation; solving the problem.
D. Defining the problem; analyzing the situation; getting problem-specific data;
interpreting the data; solving the problem.
E. None of these is the correct sequence of steps in the marketing research process.
Answer:
Even though commissions are often based on a percentage of dollar sales, they can be
based on _____________ instead.
A. number of new accounts
B. customer satisfaction ratings
C. customer service problems resolved in some time period
D. all of these alternatives are true
Answer:
The clustering techniques that can be used in segmenting:
A. eliminate the need for management intuition and judgment.
B. group people together into heterogeneous product-market segments.
C. try to find similar patterns within sets of data.
D. allow managers to ignore segmenting dimensions.
E. None of these is true.
Answer:
Gross national income (GNI):
A. is affected by economic conditions and the productivity of workers in the country.
B. usually rises when there are bad economic conditions in an economy.
C. is the amount of new capital invested in business in a year.
D. is the total cost of producing all goods and services in a year.
E. is the total market value of goods and services consumed in an economy in a year.
Answer:
