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Value pricing involves developing a "bare bones" marketing mix and a cheap price.
Answer:
The growth of mega-agencies has been prompted by large corporations who need to
advertise worldwide.
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Price lining tends to result in faster turnover, fewer markdowns, quicker sales, and
simplified buying.
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Examples of packaging's role of protecting include its link to promotion and its role in
conveying product information.
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A generic market description includes customer needs and product-type terms.
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Organizations that adopt the marketing concept should be concerned about marketing
ethics as well as broader issues of social responsibility.
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Discrepancies of quantity occur because individual producers want to produce large
quantities of products while individual consumers prefer to buy products in small
quantities.
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During the various stages of the product life cycle, the attitudes and needs of target
customers do not change.
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Average-cost pricing works well if the firm actually sells the quantity which was used
in setting the price, but losses may result if actual sales are much higher than were
expected-due to higher total variable costs.
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The adoption curve concept suggests that it is essential to stimulate early adoption by
the laggards-or the product will never get beyond introduction.
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Learning is a change in a person's thought processes caused by prior experience.
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Supplies (business products) are expense items that do not become part of a final
product.
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Validity concerns the extent to which data measures what it is intended to measure.
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GNI income measures can give the impression that people in less-developed nations
have less income than they really do.
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Adoption of the Internet and cell phones is having its greatest impact in developing
countries.
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The term "3/10, net 30" means that thirty percent of the face value of the invoice is due
immediately, and that the rest must be paid within 30 days.
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The three basic ideas in the marketing concept are: 1) putting the marketing manager in
charge of the whole firm, 2) a competitive orientation, and 3) an emphasis on profit.
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Sales growth is usually faster when the product is incompatible with the past values and
experience of the target market.
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Electronic data interchange is important in business markets in the U.S., but it plays
little role in international trade.
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Purchasing managers seldom use purchasing specifications to buy on the Internet.
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The scientific method is a research process which consists of five stages: observation,
developing hypotheses, predicting the future, collecting data, and using statistical
methods of analysis.
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Planning Place and Promotion elements of a marketing mix is especially difficult if the
dimensions of a product-market are not operational.
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Routinized response behavior is typical for low-involvement purchases.
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A person normally has several reference groups.
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Higher physical distribution service levels is not a source of differentiation.
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Changes in the technological environment could be rejected by the cultural and social
environment-through the political and legal environments-even though such changes
might help the economic environment.
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With the observation method, the researcher skillfully engages the subject in
conversation.
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Brand names that convey a positive image in one language may be meaningless in
another.
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"Meeting competition" is a sales oriented pricing objective.
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Nonprice competition, a status quo pricing objective, is never part of an aggressive
overall marketing strategy.
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A good marketing manager organizing a new sales force knows that:
A. new sales reps should start out on the major accounts sales force so they can learn
the business from the bottom up.
B. the most profitable approach is to start with a small number of salespeople, and then
quickly add more if they can't do the job.
C. it may be necessary to rely on team selling and have more than one rep call on a
single customer if different skills are needed.
D. a major accounts sales force is used to sell to small retailers who are not covered by
wholesalers in the channel.
E. None of these alternatives is correct.
Answer:
Which of the following observations concerning promotional methods is false?
A. Each promotion method has its own strengths and weaknesses.
B. Promotion methods should complement each other when used in combination.
C. Each promotion method involves its own distinct activities.
D. All promotion methods require a similar type of expertise.
E. None of these observations is false.
Answer:
Which of the following is LEAST LIKELY to compete in the same generic market as
the others?
A. Ice cream.
B. Apple pie.
C. Fruit salad.
D. Chocolate chip cookie.
E. Pretzel.
Answer:
In developing trails for hiking and biking to bring its winter ski customers back in the
summer, Mountain High Ski Resort is pursuing what type of opportunity?
A. Channel penetration
B. Diversification
C. Product development
D. Market development
E. Market penetration
Answer:
Strategy planning for Price is concerned with:
A. to whom and when discounts and allowances will be given.
B. how transportation costs will be handled.
C. how flexible prices will be.
D. at what level prices will be set over the product life cycle.
E. All of these alternatives are correct.
Answer:
Ceramics Distributing Co. wants to keep its inventory low. Which of the following
would be MOST likely to encourage customers to take over more responsibility for the
storage function?
A. setting a skimming price
B. specifying invoice terms of 2/10, net 30
C. offering a noncumulative quantity discount
D. using zone pricing
E. using F.O.B. shipping point pricing
Answer:
A generic market definition includes
A. customer (user) needs, customer types, geographic area, and product type.
B. customer (user) needs, customer types, and geographic area.
C. customer (user) needs, customer types, product design, and product type.
D. customer types, product design, and product type.
E. customer types, product design, product type, and customer needs.
Answer:
Improving both micro-marketing and macro-marketing may require:
A. tougher enforcement of present laws.
B. better-informed and more socially responsible consumers.
C. more attention to consumer privacy.
D. more social responsibility by businesses.
E. All of these may be required.
Answer:
The legal obligation of sellers to pay damages to individuals who are injured by
defective or unsafely designed products is called:
A. breach of warranty.
B. product liability.
C. deficit accountability.
D. the rule of reason.
E. salutary responsibility.
Answer:
The statement, "I like Southwest Air," is an example of a(n):
A. belief
B. intention
C. attitude
D. drive
E. none of these alternatives is correct
Answer:
At break-even point (BEP),
A. the firm's total revenue will equal its variable costs.
B. the firm's total sales will equal its total production.
C. the firm's total cost will equal its total revenue.
D. the firm's total profits will equal its total cost.
E. the firm's total variable costs equal its total fixed cost.
Answer:
In the U.S., door-to-door shopping accounts for _____ percent of retail sales.
A. less than 1
B. 3
C. 5
D. 7
E. just over 10
Answer:
A purchase having some multiple influence and requiring some information would fit
the description of a
A. new-task buy.
B. modified buy.
C. straight rebuy.
D. modified rebuy.
E. simplified buying.
Answer:
When a Walmart clerk processes a customer's purchases by scanning the bar codes of
their items, this is an example of what type of research?
A. Observation
B. Experiment
C. Phone
D. Mail
E. Secondary
Answer:
According to the General Electric strategic planning grid, a business that is the
strongest in its industry:
A. should still be considered as a "no-growth" prospect unless the industry
attractiveness is high.
B. is a good prospect, provided the industry has at least medium attractiveness.
C. should automatically receive a large investment.
D. All of these alternatives about GE's strategic planning grid are true.
Answer:
Retailers of expensive heterogeneous shopping products usually have a strong need for:
A. order takers.
B. technical specialists.
C. merchandisers.
D. order getters.
E. supporting salespeople.
Answer:
The best way to improve the operation of our MACRO-marketing system-given the
current objectives of our society-is:
A. to encourage marketing managers to produce only what they feel is good for
consumers.
B. to eliminate intermediaries.
C. to do better marketing strategy planning and implementation.
D. to spend more on advertising.
E. to move toward a command economy.
Answer:
The American Heart Association promotes its awareness campaign with the popular
tagline, "Learn and Live." Here, The American Heart Association's marketing effort
focuses on satisfying what level in the hierarchy of needs?
A. Social
B. Safety
C. Physiological
D. Personal
Answer:
When a customer goes online to register Adobe's Acrobat Reader, the Web page
promotes other related products, including its popular Photoshop software. This is an
example of:
A. product development.
B. screening opportunities.
C. mass marketing.
D. differentiation.
E. market penetration.
Answer:
The basic objective of the U.S. market-directed economic system is to:
A. ensure the survival of business firms.
B. find a reasonable balance between consumer satisfaction and business profits.
C. reduce the cost of marketing activities.
D. satisfy consumer needs as the consumers themselves see them.
E. satisfy consumer needs as seen by marketing managers.
Answer:
Distribution centers:
A. are designed to facilitate the flow of products through the channel.
B. are the same as public warehouses.
C. are not places where regrouping activities-such as bulk-breaking-are performed.
D. increase storing costs.
E. are designed to eliminate all storage.
Answer:
______________ means potential customers won't buy a brand-unless its current image
is changed.
A. Brand preference
B. Brand rejection
C. Brand insistence
D. Brand recognition
E. Brand nonrecognition
Answer:
From a micro view, marketing
A. applies to large corporations but not to a new venture started by one person.
B. is an important social process.
C. emphasizes how the whole marketing system works.
D. is a set of activities performed by an individual organization to satisfy its customers.
E. directs an economy's flow of goods and services from producers to consumers.
Answer:
If Macy's department store prices its men's ties at $10 intervals between $38 and $68,
this is an example of:
A. Reference pricing
B. Price lining
C. Bundle pricing
D. Leader pricing
E. Bait pricing
Answer:
Which of the following is not a valid criterion of a "good" market segment?
A. Homogeneous within
B. Heterogeneous between
C. Substantial
D. Remarkable
E. Operational
Answer:
Exporting
A. is selling some of what the firm produces to foreign markets.
B. can be a way to get rid of surplus output.
C. can come from a real effort to look for new opportunities.
D. all of these alternatives are correct.
Answer:
Which of the following is unique to export-import brokers, differentiating them from
general brokers?
A. They usually have a temporary relationship with the buyer and seller while a
particular deal is negotiated.
B. They specialize in bringing together buyers and sellers from different countries.
C. They are especially useful when buyers and sellers do not come into the market very
often.
D. They earn a commission from whichever party hired them when the transaction is
completed.
E. The broker's product is information about what buyers need and what supplies are
available.
Answer:
Which of the following best illustrates communication "noise"?
A. A TV ad is recorded at a higher volume than is used for most TV shows.
B. A motorist doesn't hear a radio ad because she is being stopped by a police officer for
speeding.
C. A political candidate rides through town in a car with a loud speaker-asking
pedestrians to vote for her.
D. Magazine sales reps telephone consumers to offer low-price subscriptions.
E. A Pepsi ad that has rap music in the background.
Answer:
A firm that focuses its attention primarily on 'selling" its present products in order to
meet or beat competition is operating in which of the following "management eras"?
A. Production era
B. Sales era
C. Marketing department era
D. Marketing company era
E. Advertising era
Answer:
Which of the following questions is likely to be MOST important to a customer
concerning a company's physical distribution practices?
A. How much does the company spend to deliver the product?
B. How dependably does the company deliver the product?
C. How is the product stored before being delivered?
D. What mode of transportation is being used?
E. How is the product moved to its final destination?
Answer:
When Taco Bell shows a large close-up of a chicken taco in a television ad, it is:
A. encouraging selective retention.
B. hoping to encourage extensive problem solving by the audience.
C. appealing to the social needs of the audience.
D. appealing to the economic needs of the audience.
E. using a cue to encourage a particular response to the hunger drive.
Answer:
A salesperson works for a producer, calls on intermediaries and their customers, tries to
develop goodwill while stimulating demand, but doesn't take any orders for the
producer's products. This salesperson is a(n):
A. Order getter.
B. Technical specialist.
C. Missionary salesperson.
D. Order taker.
E. Sales manager.
Answer:
The universal functions of marketing include buying, selling, transporting, storing,
_________________________________________.
A. standardization and weighing, financing, risk taking, and marketing information
B. standardization and grading, facilitating, risk taking, and marketing information
C. standardization and grading, financing, risk taking, and marketing information
D. standardization and grading, financing, risk taking, and merchandising information
Answer:
Societies need a macro-marketing system
A. to help match supply and demand.
B. to create a gap between producers and consumers.
C. to accomplish an organization's objectives only.
D. to identify collaborators.
E. to reduce the need for intermediaries.
Answer:
