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On average, U.S. corporations spend only about 2.5 percent of their sales on
advertising.
Answer:
In the U.S. about three-fourths of new retailing ventures fail during the first year.
Answer:
In the U.S., ethnic submarkets are growing at a faster rate than the overall population.
Answer:
The American Customer Satisfaction Index makes it possible to track changes in
consumer satisfaction measures over time and even allows comparison among
countries.
Answer:
The unfair trade practices acts are intended to prevent intermediaries from using
"outrageously" high markups that would cheat consumers.
Answer:
Brand preference means customers usually choose the brand over other brands, perhaps
out of habit or past experience.
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Super warehouse stores charge higher prices than supermarkets and focus on attracting
customers who want better selections of perishables like meat and produce.
Answer:
"Regrouping activities" involve adjusting the quantities or assortments of products
handled at each level in a channel of distribution.
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Bid pricing is offering a specific price for each possible job, rather than setting a price
that applies to all potential customers.
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The text credits Chipotle's marketing success to its great price.
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It's not sensible for a firm to implement a marketing plan if the plan doesn't generate at
least enough initial revenue to cover working capital needs.
Answer:
A mission statement substitutes for more specific objectives.
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In administered channel systems, vertical cooperation is achieved by acquiring firms at
different levels of activity.
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A major problem with average-cost pricing is that it does not allow for cost variations at
different levels of output.
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Over the long run, most product-markets tend toward monopolistic competition.
Answer:
Activities, Interests and Opinions are the "AIO" variables used in lifestyle analysis.
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A trademark can be a word, but cannot be a symbol.
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Telemarketing can help a firm extend its personal selling efforts to new target markets
without investing a lot of time and money.
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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 example for the seven-step approach (discussed in the text) uses recreational
vehicles in the U.S. as its broad product-market.
Answer:
The government is the largest customer group in all countries.
Answer:
The ideal of doing things better, faster, and at lower cost is easy to implement once it is
accepted.
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Most small organizations have a separate information technology management group.
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Early adopters tend to rely on impersonal and scientific information sources, or other
innovators, rather than salespeople.
Answer:
Just as a firm has a social responsibility in the country where it sells products, it also
has a social responsibility to the people who produce its products.
Answer:
The cost of environmental damage is now a measured cost of most firms that is passed
along to consumers.
Answer:
Screening criteria should be in quantitative formbased on factors such as profit and
expected salesso that they are objective and not subject to qualitative judgments and
interpretations by different managers.
Answer:
For marketing cost analysis, it's often useful to reallocate costs in various natural
accounts to specific products or customers.
Answer:
Just-in-time delivery reduces storing and handling costs for business customers.
Answer:
Progressive wholesalers are becoming more concerned with their customers and with
adding value in their channels.
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If Radio Shack offers several models of clock radios at each $5 increment between
$19.95 and $49.95, it is probably practicing odd-even pricing.
Answer:
Compared to final consumers, manufacturers tend to be more spread out geographically.
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Marketers no longer encounter differences among European countries.
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When a customer service rep works to solve a customer's problem, it often involves
taking steps to remedy what went wrong.
Answer:
If a retailer adds a 25-cent markup to a product which costs the retailer $1.00, then
according to the text the retailer's markup is 25 percent.
Answer:
Opinion leaders for one subject or product are also usually opinion leaders for many
other subjects or products.
Answer:
The inflation rate experienced by the United States in recent years was just about the
highest in the world.
Answer:
It is useful to think of the marketing strategy planning process as a narrowing-down
process.
Answer:
Missionary salespeople usually work for wholesalers and provide special promotion
help to producers whose products are widely distributed.
Answer:
A mission statement should focus on just the key goals for the organization.
Answer:
Which of the following is LEAST likely to compete in the same generic market with
the others?
A. Garlic powder.
B. Pepper.
C. Tabasco sauce.
D. Salt.
E. Potato chips.
Answer:
Anita Seagroves visits the local Healthy Glow spa, but dislikes the dirty dressing area
and refuses to go back. This is an example of
A. homogeneous shopping.
B. trademarking.
C. brand rejection.
D. heterogeneous shopping.
E. brand nonrecognition.
Answer:
The 7-step approach to market segmentation used in the text shows that:
A. determining needs rarely change.
B. profit is the overall consideration beginning with Step 1.
C. it's useful to consider what people in each submarket do NOT want as well as what
they do want.
D. submarkets are nicknamed based on their qualifying needs.
E. retirement centers in the Sunbelt is a broad product-market with many submarkets.
Answer:
Flexibility, geographic terms, and allowances are all related to
A. price.
B. product.
C. promotion.
D. place.
E. price and product.
Answer:
The slowest transportation is typically by
A. rail.
B. water.
C. truck.
D. air.
Answer:
Total fixed cost
A. is dependent on production volumes.
B. stays the same even if production stops temporarily.
C. includes wages and sales commissions.
D. is the sum of average fixed costs and variable overheads.
E. is dependent on minor changes in output volume.
Answer:
Which of the following countries has the lowest literacy rate?
A. United Kingdom
B. Italy
C. Bangladesh
D. France
E. Egypt
Answer:
In a firm with a production orientation
A. customer needs determine company plans.
B. relationship with customer extends beyond a single sale.
C. costs that do not give value to customers are eliminated.
D. marketing research, if used at all, is for determining customer reaction.
E. advertising is focused at need-satisfying benefits of goods and services.
Answer:
Which of the following is an "unsought product"?
A. Gravestones aimed at 'senior citizens."
B. A new type of "health food" produced by a new, small company.
C. Life insurance aimed at college students.
D. Encyclopedias aimed at new parents.
E. All of these are unsought products.
Answer:
Which of the following prices is most likely to be seen if a firm is using odd-even
pricing?
A. $9.00
B. $2.03
C. $6.60
D. $99.95
E. $100.00
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:
Customers tend to be more price sensitive
A. the greater the total expenditure.
B. when someone else pays the bill.
C. when someone else shares the cost.
D. the greater the significance of the end benefit of the purchase.
E. the lesser the total expenditure.
Answer:
Which of the following is a demographic pattern that affects marketing strategy
planning?
A. Shrinking media budgets
B. Growth of interactive agencies
C. Slower real income growth in the United States
D. Major accounts specialization
E. Interactive bidding and proposal requests
Answer:
An on-site auction may stimulate a different response than an online auction. This is an
example of ___________ affecting the purchase decision.
A. demographics
B. time
C. surroundings
D. task
E. culture
Answer:
The selling formula approach:
A. starts with a prepared presentation outline, discovers each customer's specific needs,
and then leads the customer through some logical steps to a final close.
B. uses the same sales presentation with every potential customer.
C. usually requires a more skilled salesperson than the consultative selling approach.
D. is a problem-solving approach in which the customer and salesperson work together
to satisfy the customer's needs.
E. None of these are correct for the selling formula approach.
Answer:
Regarding pricing:
A. the use of prestige and psychological pricing shows that most retailers do not
consider demand when setting prices.
B. bait pricing tries to attract customers on the high end of a demand curve.
C. the FTC considers bait pricing a deceptive act and has banned its use in interstate
commerce.
D. leader-priced items are priced very low to get customers into the storenot to sell
these items.
E. All of these alternatives are correct.
Answer:
Product warranties:
A. Must be specific and in writing.
B. Can have a positive effect on perceptions of product quality.
C. Are governed by the federal Lanham Act.
D. Are the same as service guarantees.
E. All of these alternatives are correct.
Answer:
If the promotion objective is to arouse desire and obtain action, which type of publicity
would work best?
A. Blogs
B. Direct-to-consumer press releases
C. Podcasts
D. Case studies
E. Facebook
Answer:
The economic freedom provided within a market-directed economy produces the
greatest number of:
A. government planners
B. government regulations
C. entrepreneurs and innovators
D. military-oriented purchases
E. trade restrictions
Answer:
Compared with other approaches to business, the marketing concept is distinct in that it:
A. focuses on profits.
B. produces new products and services.
C. creates a broad assortment of products.
D. produces quality products.
E. focuses on satisfying customers' needs.
Answer:
All of the following are true of requisitions except
A. it is a request to buy something.
B. it is frequently handled online to cut time and paper shuffling.
C. its processing usually takes a few hours for both simple and complex purchases.
D. it is a form of centralized control.
Answer:
The marketing management process is the process of:
A. Planning marketing activities.
B. Implementing marketing plans.
C. Controlling marketing plans.
D. All of these.
Answer:
Scott Paper uses many intermediaries to reach its target markets; Citibank uses none.
Which of the marketing mix variables is being considered here?
A. Penetration
B. Product
C. Promotion
D. Place
E. Price
Answer:
The sum of those costs that do not change in totalno matter how much is producedis
called:
A. total fixed cost.
B. total cost.
C. total variable cost.
D. total direct cost.
E. None of these is a good answer.
Answer:
Sarah Manchester works for a cable TV company in a large city. She consults with
architects and builders who want advice about planning for a home theater set-up before
a home is built and wired. The cable company created Sarah's position when it learned
that a local satellite TV service provider was signing up a larger share of new home
owners in luxury subdivisions. Sarah is a(n):
A. technical specialist.
B. sales promotion specialist.
C. order taker.
D. order getter.
E. customer service rep.
Answer:
Licensing, in international marketing,
A. refers to foreign intermediaries agreeing to sell products produced in this country.
B. requires a producer to pay a licensing fee to the country where it wants to sell its
products.
C. increases the risk that a company's production facilities will be taken over by the
foreign country.
D. means a company selling the right to use a process, trademark, patent, or other right
for a fee or royalty.
E. None of these alternatives is correct.
Answer:
To improve the effectiveness of the marketing control process, the marketing manager
should:
A. realize that most errors are made because managers react to detailed information too
quicklyinstead of waiting to see what patterns show up in summary reports.
B. be the supervisor for the data-processing manager.
C. have all necessary data captured as it comes in and in a form that can be quickly
sorted and analyzed by computer.
D. be certain that all cost records are kept in a central location controlled by the
marketing department.
E. All of these are true.
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:
High markups on a product could lead to low profits when
A. competitors have higher markups.
B. there are no substitutes.
C. demand is inelastic.
D. sales dip due to high prices.
E. supply is inelastic.
Answer:
Regarding product life cycles, which of the following is not true?
A. Industry profits are likely to level off or decline before sales level off.
B. The level of promotion usually decreases in market maturity since there is less
revenue to cover the cost.
C. Many close substitutes are usually competing in the market maturity stage.
D. It is usually expensive for a new firm to enter in the market maturity stage.
E. There is a downward pressure on prices over time.
Answer:
