Setting prices for business products is very similar to setting prices for consumer
products.
a. True
b. False
The fact that business customers purchase products to be used directly or indirectly in
the production of goods and services to satisfy customers’ needs means that demand for
business products is:
a. joint.
b. economically instable.
c. derived.
d. inelastic.
e. more fluctuating.
Which of the following is not a public relations tool?
a. Feature article
b. Company magazine
c. News release
d. Annual report
e. Product sample
Which of the following modes of transportation hauls more freight than any other?
a. Railroads
b. Waterways
c. Pipelines
d. Trucks
e. Airways
Not all the behavioral patterns and values attributed to specific subcultures apply to
every member of that specific subculture.
a. True
b. False
While social networks can be used to target customers, it is still easier to target precise
consumer groups using traditional marketing media.
a. True
b. False
Newspaper ads for Blue Haven Pools offering discounted prices during October and
discounted cleaning supplies for hot tubs in March are examples of:
a. retaining loyal customers.
b. promoting new product uses.
c. making salespeople more effective.
d. stimulating primary demand.
e. reducing sales fluctuations.
A brand type is considered the least protectable under existing trademark regulations.
a. descriptive
b. fanciful
c. generic
d. symbolic
e. suggestive
A salesperson at Best Buy tells Donovan that the Sony Notebook is one of the most
reliable computer notebooks ever made. Donovan, however, has just heard about a
second Sony recall for this model because of overheating. If Donovan engages in
selective distortion, his most likely response will be to:
a. buy the Sony Notebook without a second thought.
b. forget the information from the salesperson.
c. ignore the recall as a fluke.
d. focus on positive aspects of the Sony.
e. cease shopping for a computer notebook at this time.
Buyers want to exert only minimal effort to obtain shopping products.
a. True
b. False
The decision to drop a product should always be a unanimous decision of the
management team.
a. True
b. False
Which of the following is a shortcoming associated with gathering primary data
through surveys?
a. Most companies do not have any funding for survey research.
b. Fewer people are willing to participate in surveys.
c. Laws significantly limit firms’ ability to conduct surveys.
d. Unreliable methods of distributing surveys make them difficult to conduct.
e. Very little useful information is ever gathered from survey results.
Scenario 17.1
Use the following to answer the questions.
Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to
various motorcycle retail stores around the country. Jafrum does not manufacture these
items, but sells them to other retailers and also sells its merchandise through its website.
Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining
new customers, increasing sales to current customers, and visiting the retail stores
throughout the country. Recently, he has been given the sales objective from Jafrum’s
management to increase sales dollars by 15% in the coming year by adding new
customers. Sean’s current compensation is based on a $1,000 per month draw, plus 5%
of all sales over $100,000. His salary last year totaled $42,000. Management has given
Sean the choice of going to a compensation plan where he will earn 15% of all sales,
but no draw. Sean is developing his list of potential new retail customers by accessing
the yellow pages online. Here he finds the contact information for every motorcycle
store in the 48 contiguous states, and eliminates those who currently are his customers.
Sean is involved in which step of the personal selling process?
a. Prospecting and evaluating
b. Preapproach
c. Overcoming objections
d. Closing
e. Following up
Codes of conduct must be detailed enough to take every situation into account.
a. True
b. False
A trademark signifies .
a. that the owner has exclusive use of a brand and others are prohibited from using it
b. that a product was manufactured by a particular company
c. the full and legal name of an organization
d. the level of quality of a product based on its legally protected rights
e. the inventive use of a brand name or brand mark to identify a company’s products
A hairstylist who gives good haircuts in the morning but tends to give haircuts of lesser
quality in the evening hours is affected by the challenges associated with intangibility
of the haircut service.
a. True
b. False
The phrase, purchase products, includes the acceptance of ideas and issues.
a. True
b. False
A telephone survey is a good example of a completely random sample for the entire
population.
a. True
b. False
As the Internet and digital communication technologies have advanced, marketers are
able to target markets more precisely.
a. True
b. False
The market concept developed out of a sequence of three eras: the production
orientation, the marketing orientation, and the industrial orientation.
a. True
b. False