The most COMMON method of budgeting for marketing expenses is to:
A. match competitors’ spending.
B. allocate any funds not already allocated to other functions.
C. allocate enough to completely eliminate the cost of lost customers.
D. allocate for the job that needs to be done.
E. allow a percentage of either past or forecasted sales.
Answer:
Gavan and Rebekah want to buy a flat-screen TV. They look at several brands in several
different stores before finally deciding on a Sharp. This set was the most expensive
model they saw, but they felt it had better colors and would be more reliable. In this
case, this TV is:
A. an impulse product.
B. a heterogeneous shopping product.
C. an emergency product.
D. a specialty product.
E. a homogeneous shopping product.
Answer:
Compared to specialty wholesalers, general merchandise wholesalers handle:
A. a narrower line-or perhaps only a specific line of merchandise.
B. almost no physical products.
C. a very narrow assortment of products.
D. products they do not own, while specialty wholesalers do own them.
E. a broader variety of products.
Answer:
Professional Dental Supply has been successfully selling dental instruments to dentists
for the past twenty years, and has developed strong customer relations. When looking
for new marketing opportunities, Professional Dental Supply will most likely look first
at
A. market penetration.
B. diversification.
C. market development.
D. product development.
E. Professional Dental Supply will look at all opportunities equally.
Answer:
A stay-at-home mom is watching a ‘soap opera” on TV when a commercial for a new
type of kitchen cleaning product by Procter and Gamble is presented. She considers
whether the new product will clean better than her existing cleaning products. In the
traditional communication model, the mom is the:
A. Decoder
B. Source
C. Noise
D. Encoder
E. Message channel
Answer:
Which of the following would be most helpful for predicting why a final consumer
selects one of several similar brands?
A. population data
B. consumer spending patterns
C. behavioral science theories
D. consumer income
E. all would be equally helpful
Answer:
Which of the following is NOT a type of limited-function wholesaler?
A. Specialty wholesaler
B. Catalog wholesaler
C. Truck wholesaler
D. Drop-shipper
E. Cash-and-carry wholesaler
Answer:
Which of the following is a function that an intermediary is likely to provide for
customers?
A. reduce inventory costs
B. regroup products
C. provide delivery
D. grant credit
E. All of these are functions provided for customers.
Answer:
To take advantage of increased customer demand, a hair salon may use all the following
strategies except:
A. keep salon open longer hours.
B. hire more specialists.
C. create larger stores with more capacity.
D. open additional stores.
E. store inventories of salon services in warehouses.
Answer:
Given the following data, determine the break-even point in units:
Total fixed cost = $120,000
Variable cost per unit = $0.60
Selling price per unit = $1.10
A. 100,000
B. 240,000
C. 200,000
D. 218,182
E. 50,000
Answer:
This frequently used approach for analyzing and interpreting marketing research data
shows the relationship of answers to two different questions.
A. Observation
B. Focus group interviews
C. Online response rates analysis
D. Experimental approach
E. Cross-tabulation
Answer:
Marketing could NOT take place without:
A. intermediaries.
B. collaborators.
C. two or more parties who are willing to exchange something for something else.
D. a high standard of living.
Answer:
If Walmart purchases a manufacturing plant to produce nothing but Walmart’s dealer
brand of laundry detergent, Walmart is engaging in:
A. Monopoly.
B. Vertical integration.
C. Intertype competition.
D. A contractual channel system.
E. An administered channel system.
Answer:
Regarding business products:
A. The demand for consumer products is derived from the demand for business
products.
B. Total industry demand is fairly elastic.
C. Demand facing individual sellers is always inelastic.
D. Tax treatments of business products have no importance to business customers.
E. The demand for business products is derived from the demand for consumer
products.
Answer:
Which of the following NAICS codes would be used by a marketing manager who
wanted data on the MOST GENERAL breakdown of a particular industry?
A. 31
B. 31522
C. 315
D. 3152
E. There is no way to tell from the information provided.
Answer:
A large firm with ample resources wants to minimize the risk of “inviting” competitors
to “chip away” at its target market(s). It has segmented its broad product-market and
identified several homogeneous submarkets-each of which is large enough to offer
attractive sales and profit potential. Which of the following approaches should the firm
use?
A. Multiple target market approach
B. Mass marketing approach
C. Combined target market approach
D. Single target market approach
E. None of these approaches is correct
Answer:
Which of the following is a business or organizational customer, as opposed to an
individual final consumer?
A. A wholesaler purchasing merchandise for resale
B. A business executive who purchases a new suit
C. A teacher who fills her car with gasoline
D. A homeowner who buys flowers at a garden center
E. None of these is a business or organizational customer
Answer:
Which of the following is an example of using a cue to attract consumers?
A. Using a label with red, white, and blue colors to stir patriotic feelings.
B. Adding lemon scent to a soap.
C. Using a package that looks like the one for a popular brand.
D. Adding pine scent to a cleansing fluid.
E. All of these are examples of using a cue.
Answer:
As a product moves into the market maturity stage of its life cycle, the marketing
manager should:
A. try to build primary demand.
B. move toward exclusive distribution.
C. expect the market to move toward pure competition.
D. emphasize promotion that informs rather than persuades.
E. None of these alternatives is correct.
Answer:
The main advantage that marginal analysis has over most other popular pricing methods
is that it:
A. Considers both fixed and variable costs.
B. Takes into account the break-even point.
C. Allows managers to evaluate pricing alternatives.
D. Takes into account both costs and demand.
E. Incorporates the markup chain.
Answer:
Which of the following advertising objectives is the BEST example of a specific
advertising objective?
A. To increase a firm’s market share by 20 percent-this year.
B. To increase consumer awareness of the product.
C. To help attract new retailers on the West Coast.
D. To sell the company “image” to senior citizens.
E. To increase store traffic.
Answer:
Which of the following must occur for marketing to happen?
A. Product
B. Place
C. Advertising
D. Price
E. Two or more parties exchange something of value for something else of value.
Answer:
The percent of people contacted who complete a survey questionnaire is the:
A. response rate.
B. sample base unit (SBU) rate.
C. population rate.
D. sample rate.
E. hit rate.
Answer:
Which of the 4Ps in the marketing mix is most directly related to the publicity for a
B2B campaign?
A. Product
B. Place
C. Promotion
D. Price
Answer:
A product-market definition should include:
A. product type.
B. customer types.
C. customer needs.
D. geographic area.
E. All of these alternatives are correct.
Answer:
Voluntary chains are
A. firms that own and manage more than one store.
B. retailer-sponsored groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts.
C. wholesaler-sponsored groups that work with “independent” retailers.
D. franchisors who develop good marketing strategies, and who carry out the strategy in
their own units.
E. firms that own a single-store but operate through multiple franchisors.
Answer:
A computer software company sent three computer magazines some information about
the latest release of its popular software program. One of the magazines printed a story
about the new version. This is an example of:
A. personal selling.
B. advertising.
C. publicity.
D. sales promotion.
E. None of these is a good answer.
Answer:
In Europe, auto manufacturers are required by law to allow owners of their brands to
give the cars back to the manufacturers at the end of their useful life. The manufacturers
must then recycle and reuse at least 85 percent of any vehicle made after 2004. This is
an example of a(n):
A. integration law
B. horizontal law
C. contractual law
D. vertical law
E. take back law
Answer:
Electro Technologies, Inc. (ETI) has limited capital and wants to reduce the risk of
competitors taking customers if it invests in a new product-market. Its broad
product-market consists of three reasonably distinct submarkets. To identify a target
market, ETI should probably focus on using the __________ approach.
A. combined target market
B. mass marketing
C. multiple target market
D. single target market
E. none of these is a good choice for Electro Technologies.
Answer:
Macy’s is considered which type of organizational customer?
A. Producer
B. Intermediary
C. Government
D. Nonprofit
Answer: