This company was rated by Fortune as the world’s most admired company in 2011 and
Bloomberg Businessweek perennially rates it as the most innovative company in the
world.
a. IBM
b. Microsoft
c. 3M
d. Kodak
e. Apple
Answer:
The activities related to managing the store and the merchandise in the store, which
includes retail pricing, store location, retail communication, and merchandise are
referred to as the __________.
a. wheel of retailing
b. distribution mix
c. retail life cycle
d. retailing mix
e. retail store positioning
Answer:
Which pricing constraint does the following statement demonstrate? “Most public
utilities must petition regulatory commissions in order to obtain a rate increase.”
a. demand for the product, class, or brand
b. newness of product in the life cycle
c. costs of production
d. type of competitive market
e. single product versus a product line
Answer:
The inventory carrying costs of airlines is high because they
a. use a straight salary compensation plan for the large numbers of flight attendants.
b. high-salaried pilots and very expensive equipment.
c. allow baggage personnel to work overtime.
d. decrease the number of workdays per week, but increase the hours per day.
e. use a commission compensation system for their reservationists.
Answer:
An intermediary who sells to other intermediaries, usually to retailers in consumer
markets, is referred to as a(n) __________.
a. broker
b. agent
c. retailer
d. distributor
e. wholesaler
Answer:
Total cost refers to
a. the sum of the expenses of the firm that are stable and do not change with the
quantity of a product that is produced and sold.
b. the change in expenses that results from producing and marketing one additional unit
of a product.
c. the average amount of money received for selling one unit of a product or simply the
price of that unit.
d. the sum of the expenses of the firm that vary directly with the quantity of a product
that is produced and sold.
e. the total expense incurred by a firm in producing and marketing a product, which
equals the sum of fixed cost and variable cost.
Answer:
There are several ways of providing consumers authentic offerings: (1) facilitate
customization; (2) __________; (3) create a social process that allows consumers to
share their interests; and (4) manage any dimension of their reputation that might
influence perceptions of authenticity.
a. allow for adaptability at every customer contact point
b. back up claims with scientific research, market research, or governmental
documentation
c. do thorough research at each stage of the new-service development process
d. provide personal interaction rather than automation
e. obtain personal endorsements from celebrity spokespeople and other opinion leaders
Answer:
Many promotional efforts are focused towards __________, who help coordinate
promotional campaigns sponsored by the manufacturer and provide marketing advice
and expertise.
a. sales personnel
b. ultimate consumers
c. intermediaries
d. repeat buyers
e. nonprospects
Answer:
Mary’s Cookies submitted an ad to the local newspaper with a coupon stating that a
dozen cookies cost $2.99. The newspaper instead printed the price on the coupon as
$29.99. Consequently, no customers came in to buy cookies by using the coupon. The
factor working against effective communication between Mary and her target market in
this case was most likely the result of __________.
a. feedback disruption
b. noise
c. a decoding error
d. a communication barrier
e. message interference
Answer:
A downfall to Twitter is that users can feel __________, as they need to check messages
at odd hours, and have higher mobile phone bills.
a. “too connected”
b. “their privacy has been violated””
c. “addicted” to Twitter
d. “easily bored” by the repetitive messages
e. they”ve experienced a “lifestyle change”
Answer:
The second phase of the strategic marketing process is the __________.
a. tactics phase
b. strategic phase
c. planning phase
d. implementation phase
e. evaluation phase
Answer:
Steve overheard one of his coworkers in a phone conversation say, “Thank you for
taking my call so quickly. I”d like to order the 16-gigabyte iPad. I”ll pick it up today at
the Southdale Apple store. Can I use the easy pay plan?” The coworker was in which
stage of the consumer purchase decision process?
a. problem recognition
b. alternative evaluation
c. information search
d. purchase decision
e. postpurchase evaluation
Answer:
The difference between the retailer’s cost and the initial selling price is referred to as
__________.
a. markup
b. maintained markup
c. markdown
d. differential markup
e. original markup
Answer:
Computer files that a marketer can download onto the computer of an online shopper
who visits the marketer’s website are referred to as __________.
a. bots
b. cookies
c. spiders
d. spam
e. interstitials
Answer:
Initially, Facebook targeted which market segment of consumers?
a. grade school children ages 6 to 12 years old
b. high school students
c. college students
d. adults with professional occupations
e. senior adults 55 years and older
Answer:
What percentage of world trade involves countertrade?
a. 5 percent to 10 percent
b. 15 percent to 20 percent
c. 25 percent to 30 percent
d. roughly 50 percent
e. Countertrade is so pervasive that it cannot accurately be calculated.
Answer:
Charging different prices during different times of the day or during different days of
the week to reflect variations in demand for a service is referred to as
a. capacity pricing.
b. idle production pricing.
c. customer contact pricing.
d. derived demand pricing.
e. off-peak pricing.
Answer:
Figure 1.
Figure 1. above represents the stages of the product life cycle. What does the curve
labeled “Y” represent?
a. total variable costs
b. total fixed costs
c. total industry profit
d. total industry sales revenue
e. total research and development costs
Answer:
Unit volume as a pricing objective refers to
a. the quantity of products to be produced or sold.
b. the ratio of price per unit to unit variable cost.
c. the ratio of production costs to the minimum sales price that would still generate
profit.
d. the total quantity of product sold by a firm relative to the total quantity of product
sold by all firms in the industry.
e. the number of units that need to be sold in order to avoid inventory carrying costs.
Answer:
Today’s organizations can be divided into two groups, which are
a. companies and cooperatives.
b. business firms and offerings.
c. business firms and nonprofit organizations.
d. employees and customers.
e. public and private.
Answer:
Reebok, Schwab, Dell, and Seven Cycles are all examples of companies that have been
very successful because of their ability to not only __________ their products and
services for their online customers but also personalize the marketing and overall
shopping and buying interaction for each customer.
a. dispense
b. recommend
c. finance
d. distribute
e. customize
Answer:
Cumulative quantity discounts refer to
a. reductions in unit costs for a larger order.
b. cash payments or extra amounts of “free goods” awarded sellers in the channel of
distribution for undertaking certain advertising or selling activities to promote a
product.
c. discounts offered to sellers for first-time purchases of a new product as incentives for
providing shelf space.
d. a series of discounts for every additional rebuy in which the discount becomes
incrementally higher.
e. discounts that apply to the accumulation of purchases of a product over a given time
period, typically a year.
Answer:
Odd-even pricing is considered to be a __________ approach to pricing.
a. cost-oriented
b. profit-oriented
c. demand-oriented
d. competition-oriented
e. service-oriented
Answer:
A __________ product is one for which significant customer education is required and
there is an extended introductory period.
a. high-learning
b. low-learning
c. fashion
d. fad
e. substitute
Answer:
A corporate vertical marketing system refers to
a. small, independent retailers that form an organization that operates a wholesale
facility cooperatively.
b. professionally managed geographically dispersed marketing channels that are
controlled through strategic channel alliances.
c. the combination of successive stages of production and distribution under a single
ownership.
d. professionally managed and centrally coordinated marketing channels designed to
achieve channel economies and maximum marketing impact.
e. a contractual arrangement between a parent company and an individual or firm that
allows the individual or firm to operate a certain type of business under an established
name and according to specific rules.
Answer:
The use of brand names is especially important for services because of which unique
characteristic of services?
a. inventory costs
b. inseparability
c. inconsistency
d. invisibility
e. intangibility
Answer:
Which of the following tasks are involved in the sales plan formulation stage of the
sales management process?
a. recruiting and selecting the salesforce, training the salesforce, and compensating the
salesforce
b. developing account management policies, implementing the account management
policies, and evaluating the account management policies
c. setting sales objectives, organizing the salesforce, and developing account
management policies
d. organizing the salesforce, establishing quantitative assessment, and implementing
follow-up
e. organizing the salesforce, setting motivational sales quotas, and evaluating the
individual members of the salesforce
Answer:
The choice of a supply chain follows from a clearly defined marketing strategy and
involves three steps: (1) _________; (2) understand the supply chain; and (3)
harmonize the supply chain with the marketing strategy.
a. understand the environment
b. consider the legal consequences of partnering
c. understand the marketing strategy
d. understand the customer
e. understand the company’s goals
Answer:
Figure 1.
Figure 1. above shows there are six stages in the personal selling process (“A” through
“F”) along with the objective(s) of each stage. If the salesperson’s objective is to “ensure
that the customer is satisfied with the product or service,” what stage of the personal
selling process is the salesperson engaged in?
a. follow-up
b. prospecting
c. presentation
d. preapproach
e. close
Answer:
When Beth purchased diabetic candy from a catalog retailer, she was sent orange- and
lemon-flavored candy coated in dark chocolate. When she called to complain to the
catalog retailer, she was told to keep the candy that was incorrectly sent to her, and that
the company would immediately ship her the correct candy. This erroneous shipment of
candy would be listed as a(n) __________ on the operating statement for the catalog
retailer.
a. product return
b. markdown
c. amortized product
d. liquidity error
e. allowance
Answer:
The most commonly used pricing method for business products is __________.
a. target return on investment
b. customary
c. standard markup
d. target profit
e. cost-plus pricing
Answer: