Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Psychographics is the analysis of a person's day-to-day pattern of living as expressed in
that person's
A. safety, social, and personal needs.
B. actions, interests, and occupation.
C. activities, interests, and opinions.
D. culture, beliefs, and attitudes.
E. psychological and physiological needs.
Answer:
DIRECT competitive advertising:
A. aims for immediate buying action.
B. tries to develop primary demand.
C. is only seen in newspapers.
D. only uses direct mail.
E. stresses specific product advantages-so the target customers will buy the advertised
brand when they are ready to buy.
Answer:
In which of the following situations is time influencing the purchase situation the most?
A. Jiah purchases a gift for his mother after viewing an online offer.
B. Henry visits a discount store to compare the store's pricing with other regular stores
before purchasing a lawn mower.
C. Kelly visits the city's central mall and checks various brands of sunglasses before she
decides to purchase one from the Lanezone brand.
D. Beulah, on her way to work, realizes that her car has a flat tire. She gets it fixed at
the nearest auto service station without evaluating other alternatives.
E. Ronaldo reviews websites and a consumer magazine as he considers buying a new
television.
Answer:
A firm that is very concerned about increases in market share should adopt a
______________ pricing objective.
A. profit-oriented
B. sales-oriented
C. nonprice competition
D. status quo
E. target return
Answer:
Trust is the confidence a person has in the promises or actions of
A. another person.
B. a brand.
C. a company.
D. a recommender.
E. all of these choices are correct.
Answer:
Which of the following is NOT a "Something of Value" which might be offered to
FINAL CONSUMERS in the "price equation"?
A. Stocking allowance
B. Service
C. Repair facilities
D. Credit
E. Packaging
Answer:
A mission statement
A. should never be revised.
B. sets out the organization's basic purpose for being.
C. should embrace everything rather than focus on a few key goals.
D. substitutes for more specific objectives.
E. supplies guidelines for general situations but not for situations where managers face
difficult decisions.
Answer:
Sales promotion activities:
A. Usually have long-term effects.
B. Are aimed at final consumers, but not business customers.
C. Focus more on getting attention than on stimulating action by consumers.
D. May be aimed at a firm's own employees.
E. Usually take longer to achieve sales results than does advertising.
Answer:
______________ segmenting dimensions help decide whether a person might be a
potential customer-but not which specific products or brands that person might buy.
A. Determining
B. Qualifying
C. Operational
D. Customer-related
E. Situation-related
Answer:
"Marketing strategy planning" means:
A. finding attractive opportunities and developing profitable marketing strategies.
B. finding attractive opportunities and selecting a target market.
C. selecting an attractive target market.
D. selecting an attractive marketing mix.
E. selecting a target market and developing a marketing strategy.
Answer:
Wholesalers:
A. Have had to deal with a competitive threat posed by large retailers that have taken
over wholesale functions.
B. Are using e-commerce to serve customers more effectively.
C. Face competitive pressure from shipping companies such as FedEx and UPS that
make it easier for producers to ship directly to customers.
D. Are beginning to increase profitability by carefully selecting their retailer-customers.
E. All of these alternatives are true.
Answer:
In which of the following cases does research have little value, suggesting poor
planning by a manager?
A. The research does not ultimately have implications that allow a manager to take
action.
B. The research is qualitative in nature.
C. The research has tidbits of information rather than knowledge of the whole situation.
D. The research does not anticipate the next research step.
Answer:
The regrouping activity which involves putting together a variety of products to give a
target market what it wants is called:
A. assorting.
B. bulk-breaking.
C. wholesaling.
D. accumulating.
E. sorting.
Answer:
Barnes and Noble, a multichannel bookshop, discovers that Amazon.com is selling a
new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's
in-store price-because Amazon.com has a lower overhead cost. This is an example of
_________ conflict.
A. vertical
B. traditional
C. horizontal
D. administered
E. contractual
Answer:
According to the text, segmenting:
A. is a disaggregating or "breaking down" process.
B. assumes that each person should be treated as a separate target market.
C. assumes that all customers can be clustered into profitable market segments.
D. is an aggregating process.
E. uses scientific rules to decide how many submarkets exist.
Answer:
Use this information for question that refer to the Pricing 1 case. (WPI) case.
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. Regarding freight charges for its equipment, NPE's invoice reads, "Seller pays
the cost of loading equipment onto a common carrier. At the point of loading, title to
such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
Ross Pharmaceuticals' pricing objective is:
A. sales oriented.
B. profit maximization.
C. status quo oriented.
D. to meet competition.
E. none of these is a good answer.
Answer:
Tamika White is a sales associate for a prestigious jewelry store. When she started with
the store, she relied almost completely on serving customers who just happened to walk
into the store and who knew exactly what they wanted-all she had to do was ring up the
sale. With experience, she began to gather information about her customers and use
them as a source of referrals. She now maintains a large database of her current
customers, regularly communicates with them to keep track of their needs, and actively
solicits referrals to new customers. When she gets a new referral, Tamika sends the
prospective client an invitation to visit the store so that she can work with him/her
personally. As a result, her sales are almost all from current customers and referrals,
with almost no sales from casual "walk-in" customers. Tamika started out as a(n)
__________________, but has now become a(n) _______________.
A. Order getter; supporting salesperson
B. Order taker; supporting salesperson
C. Supporting salesperson; order taker
D. Order taker; order getter
E. Order getter; order taker
Answer:
In large retail firms
A. committee buying favors sellers with persuasive salespeople.
B. buying committees are the way all buying decisions are now made.
C. buyers have computers systems that let them know the profitability of different
competing products.
D. purchasing agents make decisions based on what products they would buy
themselves.
E. None of these alternatives is true.
Answer:
Operating supplies typically:
A. need technical and experienced personal contacts, probably at top-management
level.
B. need widespread distribution or prompt delivery.
C. need technical contacts to determine specifications required, but widespread contacts
usually are not necessary.
D. need skillful personal selling by producer.
E. None of these alternatives is correct.
Answer:
Agent wholesalers are:
A. mainly concerned with buying and selling.
B. used by small companies that want a wholesaler to assume all of the risk of carrying
inventory.
C. specialists in certain geographic areas, rather than specializing by product or
customer type.
D. at a disadvantage because manufacturers expect them to pay for products before they
are shipped.
E. None of these alternatives are correct for agent wholesalers.
Answer:
When an advertiser pays a fixed amount (e.g. 70 cents) each time a Web surfer clicks on
the advertiser's ad and links to the advertiser's website, this process is called a(n):
A. copy thrust.
B. pay-per-view.
C. pioneering ad.
D. pay-per-click.
E. advertising allowance.
Answer:
Which of the following is an example of the cultural and social environment?
A. Growing acceptance of women in business.
B. Growing popularity of exercise.
C. Increased desire for satisfaction with life.
D. All of these are examples of the cultural and social environment.
Answer:
With General Electric's strategic planning grid:
A. the industry attractiveness dimension focuses on the ability of the company to pursue
a product-market plan effectively.
B. managers must follow an objective, single-factor approach.
C. the business strengths dimension focuses on whether this product-market plan looks
like a good idea.
D. managers make three-part judgments about the business strengths and industry
attractiveness of all proposed or existing product-market plans.
E. opportunities that fall into the red boxes are the firm's best growth opportunities.
Answer:
GE's planning grid approach
A. doesn't work because different managers usually come to different conclusions given
the subjective evaluations involved.
B. is really the same thing as the total profit approach.
C. overemphasizes short term profitability.
D. is superficial because it considers only size and expected market share, and ignores
other possibly important factors.
E. could be adapted easily by another firm with different objectives.
Answer:
Carlotta Issa is shopping for a new pair of jeans. She has had good experiences with
Jordache jeans in the past and is looking for Jordache now. She probably will buy
Jordache if she finds some that are at least as good-looking as competitive jeans. This is
a good example of:
A. brand rejection.
B. brand recognition.
C. brand remembrance.
D. brand preference.
E. brand insistence.
Answer:
In the political environment, an emphasis on a single country's interests before
everything else is called:
A. Elitism.
B. Socialism.
C. Extremism.
D. Regionalism.
E. Nationalism.
Answer:
Which section of a formal marketing plan for a new product is most directly related to
deciding which segmenting dimensions are most important in choosing a target market?
A. Packaging
B. Customer analysis
C. Price
D. Implementation and control
E. Place
Answer:
"Publicity":
A. is generally less useful than advertising for promoting a truly new product.
B. is mass selling that avoids paying media costs.
C. is any paid form of nonpersonal presentation of ideas, goods, or services by an
identified sponsor.
D. is more expensive than all other promotion methods.
E. None of these alternatives for "publicity" is true.
Answer:
Expanded assortment, reduced margins, and more information are characteristics of
A. club stores.
B. specialty shops.
C. mail order.
D. the Internet.
E. department stores.
Answer:
A "marketing plan" is:
A. a marketing program.
B. a marketing strategy.
C. a marketing strategy-plus the time-related details for carrying it out.
D. a target market and a related marketing mix.
E. a plan that contains the necessary operational decisions.
Answer:
Short-lived goods and services which are charged off as they are used-rather than
depreciated over several years-are called:
A. nontaxable items.
B. expense items.
C. derived items.
D. durables.
E. capital items.
Answer:
To get problem-specific data, a marketing researcher would use:
A. the experimental method.
B. a questioning method.
C. an observing method.
D. consumer panels and focus groups.
E. Any or all of these could be used.
Answer:
Use this information to answer the following question that refer to the CPI case.
Conservo Products, Inc. (CPI), with annual sales of $200 million, is a well-known
producer of a variety of paper products, almost all of which are made from recycled
materials. Picnic plates account for about 70 percent of CPI's sales. The rest of the
firm's sales come from custom-designed materials-such as box liners and spacers, small
boxes, and disposable products-like trays, towels and napkins.
CPI's picnic plates are sold through 'sales reps" to grocery wholesalers and retail
grocery chains. The sales reps are paid a 5 percent commission on all sales in their
assigned territories. They usually handle related-but noncompeting-lines for several
other manufacturers. Along with their selling duties, the sales reps help CPI with local
advertising and sales promotion efforts. Orders for the custom products are obtained by
area managers who are paid a straight salary to call on business and institutional
customers. The area managers are trained paper specialists and often help their
customers design the products they order.
The picnic plates are priced to give CPI a 90 percent markup on the cost of producing
the product-with the cost figured by taking the total factory cost for the previous year
and dividing that total cost by the number of units produced and sold during that period.
The firm's invoices read "F.O.B.-Delivered" and "1/10, net 30." Customers are allowed
to deduct 3 percent from the face value of the invoice for buying plates in carload
quantities, and another 2 percent for advertising them locally.
The custom products are sold "F.O.B. mill"-with CPI offering a price for each job.
Competition is strong from many other manufacturers who are able to offer very similar
products which meet the customers' specifications.
CPI forecasts that sales will increase to $250 million by 2012. However, much of this
growth is tied to picnic plates-a market in which the firm has about a 7 percent market
share and faces aggressive price competition from many smaller firms with greater
brand familiarity. Further, CPI has been late with more than 50 percent of its plate
orders due to scheduling conflicts with orders for custom products.
CPI's product line includes:
A. only convenience products.
B. impulse products and natural products.
C. specialty products and supplies.
D. shopping products and raw materials.
E. staple products and component parts.
Answer:
Which of the following is not a need that affects the buying behavior of "economic
buyers"?
A. Economy of purchase or use
B. Convenience
C. Dependability in use
D. Motivation
E. Efficiency in operation or use
Answer:
Qualitative research, compared to quantitative research:
A. Asks closed-ended questions.
B. Asks yes or no type questions.
C. Provides more representative samples of consumers.
D. Relies on open-ended questioning.
E. Uses statistics to analyze data.
Answer:
