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Poor customer service is likely to reduce a firm's customer equity.
Answer:
Brand insistence means that target customers usually choose one brand over other
brands, perhaps because of habit or favorable past experience.
Answer:
Auction companies are used for products where demand and supply conditions change
rapidly.
Answer:
Direct-response promotion targets groups instead of individuals.
Answer:
Screening criteria should be in quantitative form-based on factors such as profit and
expected sales-so that they are objective and not subject to qualitative judgments and
interpretations by different managers.
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Order getters are even more important for business products than for consumer
products.
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Defining the problem is often the most difficult step in the marketing research process.
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Buying responsibility and purchase influence between husband and wife vary
greatly-depending on the product and the specific family.
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The marketing concept was very quickly accepted, especially among producers of
industrial commodities like steel and glass.
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The best transporting mode is the one that provides the required level of service at the
lowest cost.
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Sales-oriented pricing objectives are sensible because sales growth almost guarantees
higher profits.
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Decision support systems that include marketing models help managers by showing the
relationships among marketing variables.
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Reminder advertising is likely to be most useful in the market growth stage of the
product life cycle.
Answer:
Both GDP and GNI measures of national income.
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A marketing model displays up-to-the-minute marketing data in an easy to read format.
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Controlling the marketing plan is the first step of the marketing management process.
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In both supply chains and channels of distribution, the primary aim should be for each
firm to keep its own costs as low as possible.
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Toll-free telephone lines are not very practical for getting direct feedback from final
consumers.
Answer:
In customer-initiated communication, it is common for the customer to initiate
communication with a search process.
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A firm that adopts the integrated marketing communications concept tries to coordinate
all of its promotion communications to a target customer to convey a consistent and
complete message.
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A marketing strategy specifies a target market and a related marketing mix.
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Because almost all of the world's population can read and write, international marketers
have no problems in communicating with potential customers no matter where they
live.
Answer:
A consumer's total cost of shopping on the Internet includes delivery costs in addition to
purchase price.
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Homogeneous shopping products are basically the same in the eyes of the customer and
purchase decisions are often based on price.
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Qualitative research seeks in-depth, open-ended responses.
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In a market-directed economy, government officials decide what and how much is to be
produced and distributed by whom, when, to whom, and why.
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Sustainability, as a screening criteria, supports the idea of focusing completely on the
company's present needs.
Answer:
In the United States, the Consumer Product Safety Commission sets and enforces
product safety standards.
Answer:
Some firms are forced to use direct distribution when they can't find intermediaries
willing to carry innovative, new products.
Answer:
The price most consumers expect to pay for a product is called the leader price.
Answer:
Beliefs are not as action-oriented as attitudes.
Answer:
With total quality management (TQM), a company's management makes the marketing
department solely responsible for quality and customer service.
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A "markup chain" can be used to calculate the price structure in a whole channel.
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Customer service involves a breakdown in some aspect of the marketing mix.
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Advertising allowances are price reductions given to firms further along in the channel
to encourage them to advertise or otherwise promote a producer's products locally.
Answer:
The competitive environment affects the number and types of competitors the
marketing manager must face and how they may behave.
Answer:
During the market growth stage of the product life cycle, industry profits usually reach
their peak and begin to decline.
Answer:
Sales promotion is generally used instead of other promotion methods.
Answer:
Business product classes are based on how buyers think about products and how the
products will be used.
Answer:
The development of vending machines and convenience food stores is not explained by
the "wheel of retailing" theory.
Answer:
The process of marketing strategy planning is about:
A. identifying as many market opportunities as can be imagined.
B. narrowing down possible market opportunities to the most attractive ones.
C. creating products that managers like.
D. choosing the most profitable market opportunity, regardless of the firm's current
abilities and resources.
E. figuring out how to offer products at the lowest possible price.
Answer:
An office supplies producer sells a variety of office supplies to final consumers and
businesses using its own mail order catalog. Here,
A. there is no channel of distribution.
B. there is no opportunity to apply target marketing.
C. no promotion is involved.
D. a production orientation is just as effective as a marketing orientation.
E. None of these is TRUE.
Answer:
Any distraction that reduces the effectiveness of the communication process is called
A. resonance.
B. static.
C. clutter.
D. interference.
E. noise.
Answer:
_____ means trying to increase sales by selling present products in new markets.
A. Differentiation
B. Market development
C. Product development
D. Diversification
E. Market penetration
Answer:
All of the following are examples of a marketing orientation, as opposed to a
production orientation, EXCEPT:
A. the role of marketing research is to determine customer needs and how well the
company is satisfying them.
B. the relationship with the customer is based on customer satisfaction before and after
a sale leading to a profitable long-run relationship.
C. the firm's focus is on reducing its costs.
D. the role of customer service is to satisfy customers after the sale so they'll come back
again.
E. costs that do not add value to customers should be eliminated.
Answer:
Based on averages, which of the following businesses is likely to have the highest costs
as a percent of sales?
A. Manufacturer's agent for textile producers
B. Broker for industrial machinery
C. General merchandise wholesaler based in the U.S.
D. Export agent for American-made furniture
E. Import agent for specialty items from China
Answer:
Which of the 4Ps in the marketing mix is most directly related to the instructions that
come with a new high-definition television set?
A. Product
B. Place
C. Promotion
D. Price
Answer:
A technical specialist:
A. often has a background in product applications rather than sales.
B. may call on the customer both before and after a purchase.
C. may work in conjunction with an order getter to persuade new clients.
D. usually is the person who explains technical details of the firm's product to
prospective customers.
E. All of these alternatives are correct.
Answer:
Advertising can:
A. manipulate customers into buying a product.
B. raise the cost of producing a product.
C. assure a product does not fail.
D. prevent economies of scale in manufacturing.
E. increase demand for the product.
Answer:
Every new customer at Five Elements Spa is asked to register his or her personal
details, which includes the customer's age, purpose of visit, and contact information.
With this information, the company regularly keeps in touch with its customers,
reminding them of their next appointments, new spa offers, and any other promotions.
The database is used to predict a customer's next visit to the spa based on his or her
previous visits. It also helps the company design service packages to suit the customer's
individual needs. In this scenario, Five Elements Spa is using _____.
A. corporate governance
B. social audit
C. customer relationship management
D. supply chain management
E. service design prototyping
Answer:
A young working couple earned $50,000 last year. Of that, they paid $16,000 in taxes
and $15,000 in rent, food, insurance and other necessities. Their discretionary income
for the year was:
A. $35,000.
B. $50,000.
C. $19,000.
D. $34,000.
E. $15,000.
Answer:
Adoption of the marketing concept
A. is easy for most firms.
B. occurred first in the service industry.
C. has been universal.
D. has been slow for producers of industrial commodities.
E. happened last among consumer product companies.
Answer:
Which of the following pricing policies involves entering a market with a single low
price and not significantly increasing the price even upon gaining a major market share?
A. Introductory price dealing
B. Temporary price cut policy
C. Skimming price policy
D. Penetration price policy
E. Zone pricing policy
Answer:
During the sales decline stage
A. the total amount spent on promotion usually decreases as firms try to cut costs to
remain profitable.
B. firms do not need targeted promotion to reach customers.
C. personal selling will probably dominate the promotion blends of consumer products
firms.
D. promotion emphasis shifts from stimulating selective demand to building primary
demand.
E. sales promotion is primarily targeted at intermediaries to get them interested in
selling the product.
Answer:
Joy Rinaldo has agreed to participate in marketing research in which she will provide
information about her purchases on an ongoing basis. She is probably part of a:
A. confidence interval.
B. statistical package.
C. contributor group.
D. consumer panel.
E. focus group.
Answer:
The task method of budgeting for promotion expenditures:
A. Links the budget to the promotion objectives set by the company.
B. Involves determining the promotion methods that will effectively achieve the
communication tasks required.
C. Involves determining the promotion methods that are most economical for the
relevant communication tasks.
D. May result in significantly different promotional expenditures from year to year.
E. All of these alternatives are correct.
Answer:
Which of the following segmenting dimensions probably would be LEAST LIKELY to
result in segments that would meet the criteria that product-market segments should be
"operational?"
A. Geographic region.
B. Personality.
C. Family size.
D. Age.
E. Income level.
Answer:
Which of the following is true of "Deal-of-the-Day" websites?
A. These websites offer customers small discounts that are barely enough to move some
customers into action.
B. The bargain offers on these websites mainly come from foreign businesses.
C. The bargain offers on these websites arrive in daily e-mails to customers who sign up
to receive them.
D. Customers can purchase the deal on any day following the day on which they
received the offer.
E. Deals-seekers are more likely to show interest in the business offering the deal than
in the next deal it offers.
Answer:
Planning marketing strategies for international markets:
A. is usually most effective when the marketing manager uses the same marketing
strategy for all markets.
B. is often easier than planning domestic strategies because economic, political, and
other uncontrollable variables are less important.
C. is "easy" because each country should be treated as one target market.
D. None of these alternatives is true.
Answer:
Which of the following is NOT true about Internet retailing?
A. By 2015, retail sales on the Internet are expected to top $300 billion.
B. Users of tablet computers like the iPad especially enjoy online shopping.
C. About three quarters of all books are now sold online.
D. Online retailers usually have lower operating costs than brick-and-mortar stores.
E. Online stores cannot sell products like eyeglasses because of a need to try them on.
Answer:
A large U.S. firm produces potato chips, shortening, dishwasher detergent, laundry
detergent, shampoo, disposable diapers, and facial tissues. These are the firm's
A. product classes.
B. product assortment.
C. individual products.
D. marketing mix.
E. product line.
Answer:
When an online ad is delivered to a person's computer based on previous websites that
person has visited, this is called:
A. pay-per-click targeting.
B. pioneering targeting.
C. pay-per-view targeting.
D. copy thrust targeting.
E. behavioral targeting.
Answer:
Customer satisfaction is the extent to which a firm fulfills a consumer's:
A. needs.
B. desires.
C. expectations.
D. needs and desires.
E. all of these are correct.
Answer:
The president of a financial services company says that her new marketing manager has
changed things a lot-making long-range plans about where the firm should focus its
effort, and coordinating the decisions about what services to offer and how they should
be promoted and priced. It seems that this company is just moving into the:
A. marketing company era.
B. sales era.
C. production era.
D. marketing department era.
E. simple trade era.
Answer:
To meet the new competition, prices of the old products usually
A. drop.
B. remain unchanged but interest in the product is renewed with vigorous advertising.
C. increase.
D. are supplemented with coupons.
E. increase while being offset with discounts and coupons.
Answer:
Which of the following would NOT be an example of sales promotion?
A. A flyer placed on a homeowner's door announcing a new lawn service.
B. A coupon offering a "buy one, get one free" deal at a pizza restaurant.
C. A free sample of a new breakfast cereal mailed to consumers.
D. A special display of snack chips placed in a grocery store's main aisle.
E. A contest in which a fast-food chain distributes 'scratch-off" game pieces to promote
a new movie.
Answer:
Costco is a warehouse store that sells groceries, household items, and business
products. Purchase quantities tend to be larger than in traditional stores that serve final
consumers. For example, soft drinks are only sold in 24-can cases, not in 6-packs.
Coffee is sold in 3-pound cans instead of one-pound foil packs. Which regrouping
activity is Costco shifting to the consumer?
A. Accumulating.
B. Adjusting discrepancies.
C. Assorting.
D. Bulk-breaking.
E. Sorting.
Answer:
A purchasing manager:
A. Is basically a clerk who fills out paperwork to place orders.
B. Is the only person a business-to-business salesperson ever needs to see in order to
make a sale to a buying organization.
C. May specialize by product area if he/she works for a large organization.
D. Is only interested in finding the lowest possible price for a product.
E. All of these alternatives are correct.
Answer:
The first thing a marketing manager should do if one of his firm's products drops in
sales volume is:
A. conduct a survey to see what is wrong.
B. define the problem.
C. set research priorities.
D. do a situation analysis.
E. interview representative customers.
Answer:
In a channel where retailers lead, intermediaries that gather, analyze, and interpret big
data that generates insights about their customers' needs will:
A. seek out producers who can meet those needs with products at reasonable prices.
B. lose their power to influence pricing.
C. take a back seat in a producer-dominated channel system.
D. lose their bargaining power against suppliers and customers.
E. stop playing the role of a channel captain.
Answer:
Safety standards for products such as bicycles are set by the:
A. Consumer Product Safety Commission.
B. U.S. Department of Transportation.
C. Federal Trade Commission.
D. Environmental Protection Agency.
E. Food and Drug Administration.
Answer:
Mass-merchandisers:
A. locate only in large downtown areas with large sales potential.
B. are large, self-service stores which stress low price to get faster turnover.
C. emphasize nationally-advertised "hard goods."
D. usually have about as much floor space as the average supermarket.
E. All of these alternatives are correct for mass-merchandisers.
Answer:
Which of the following statements about the technological environment is NOT TRUE?
A. The Internet changes how firms communicate with customers.
B. The transfer of technology from one part of the world to another is automatic.
C. A focus on technology may cause firms to develop a production orientation.
D. New technologies create new product-markets.
E. Technology is the application of science to convert an economy's resources to output.
Answer:
A manufacturer might try to defend itself against charges of illegal price discrimination
by claiming that:
A. the price discrimination occurred as a defensive measure to "meet competition in
good faith."
B. the price differentials did not actually injure competition.
C. the price differentials were justified on the basis of cost differences in production
and/or distribution.
D. its products were not of "like grade and quality."
E. Any of these could make price discrimination legal.
Answer:
A producer of electrical parts in Kansas City wants to expand into the West Coast
market-where 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.
Answer:
