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The owner of the new Sharp Scissors hair salon gave coupons to potential customers
walking by her store to stimulate interest and trial of her new hair salon. The coupons
are an example of
A. advertising.
B. publicity.
C. sales promotion.
D. a channel of distribution.
E. media.
In a television commercial for Maytag appliances, the spokesperson "Old Lonely" acts
bored because no one is calling him to schedule a repair of their appliances. What is the
primary economic need being illustrated in this TV ad?
A. Dependability in use
B. Convenience
C. Economy of purchase
D. Improvement of earnings
Which of the following statements about market segmentation is NOT true?
A. It starts by segmenting broad product-markets.
B. It involves naming broad product-markets.
C. A market grid with submarkets can be a visual aid to market segmentation.
D. It segments broad product-markets in order to develop suitable marketing mixes.
E. First-time market segmentation efforts often fail.
Sam Reuter, marketing manager for Herbal Shampoo Company, has to choose one of
three different proposed labels for a new herbal shampoo. How might Sam pretest
consumer response to the labels?
A. Put a toll-free telephone number and Web site address on the product label.
B. Check the labels of competitors.
C. Launch the product with new labels and evaluate the response.
D. Prepare sample labels with graphics software and test them on the Internet.
E. Set up a televideo conference.
Target marketers create marketing mixes for:
A. all customer needs.
B. some generic market.
C. multiple generic markets.
D. one broad product market.
E. homogeneous product-market segments.
Consumers remembering only what they want to remember is called:
A. conscious response.
B. selective retention.
C. selective exposure.
D. cognitive learning.
E. selective perception.
Calumet Pottery Supply allows a 10 percent reduction off its list price of Jepson clay
whenever an intermediary orders more than 100 cases in one shipment. This is a:
A. cash discount.
B. seasonal discount.
C. cumulative quantity discount.
D. PM.
E. noncumulative quantity discount.
Suzuki's 3 year/36,000 mile new car warranty is part of which marketing mix decision
area?
A. Price
B. Target market
C. Place
D. Product
E. Promotion
A person who needs to purchase something usually completes a
A. requisition.
B. supply form.
C. contract.
D. certificate of purchase.
E. vendor analysis.
Which of the following statements is true?
A. Research shows that many customers are not satisfied and feel that some companies
do not deliver on their promises.
B. Research shows that most customers are somewhat satisfied and feel that companies
usually deliver on their promises.
C. Research shows that most customers are satisfied and feel that companies deliver on
their promises.
Customers for complicated installations and accessories usually expect a sales rep
A. to know all the technical details of the product.
B. to be able to discuss general business conditions with their top executives.
C. to know the details of the customer firm's particular applications of the product.
D. to use a well-organized sales presentation to get their business.
E. All of these alternatives are correct.
If a producer's marketing manager wants intermediaries to take over all responsibility
for promoting his product he probably should use
A. exclusive distribution.
B. selective distribution.
C. intensive distribution.
D. a vertically integrated distribution system.
E. Any of these, since every channel member must support a product with promotion.
A modified rebuy is MOST likely to occur for:
A. file folders.
B. brooms.
C. paper clips.
D. a desk.
E. copier paper.
The Cleveland Water Department promotes its safe water with a catchy tagline, "The
label says Fiji because it's not bottled in Cleveland." Here, the Cleveland Water
Department's marketing effort focuses on satisfying what level in the hierarchy of
needs?
A. Physiological
B. Social
C. Safety
D. Personal
A college of business developed online programs to help its alumni learn the latest
marketing practices. The college is thinking about:
A. customer value.
B. customer satisfaction.
C. breakthrough opportunities.
D. customer lifetime value.
E. market penetration.
When a hotel chain asks one of its new customers to specify the preferred location of
his room, what type of pillow he likes, and his credit card information, and then stores
this information in a database to use the next time this customer reserves a room online,
what target market approach is this chain using?
A. Single
B. Clustering
C. Segment of one
D. Multiple
E. Combined
The set of laptop computers sold by Dell is called a(n):
A. product line.
B. emergency product.
C. impulse product.
D. product assortment.
E. unsought product.
Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby
and craft supplies. She bought the store after working there for 7 years. Carol has just
been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber
of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goodsmostly
men's and women's clothingwith the upscale Walden's brand name. Walden's primarily
relies on its own stores where knowledgeable salespeople offer great service. Walden
products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks
display racks for paperback books and magazines. Most retailers welcome the service
Audrey provides, in part because she does her own research to determine which
paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of
merchandise. The company used to concentrate its product mix on small appliancesbut
now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster
turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed
a contract with Games Unlimited and follows strict rules covering her store's operations
and the Games Unlimited marketing strategy. She pays that company a fee for
promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty
products to retailers and salons throughout the greater Centerville area. It owns the
goods it sells to these retailer customers, and it provides all the wholesaling functions
they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored
by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer
name are linked by contracts that include basic operating procedures, storefront designs,
and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding
in the Centerville area. It earns a commission from each manufacturer on the products it
sells for that manufacturer, but it does not take ownership of the equipment it sells nor
does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years
ago. After some success, the company moved into a nicer storefront, raised prices, and
now operates in the middle of the market.
Which of these businesses would be classified as a specialty shop?
A. Walden's Leather
B. Cuzco's
C. Publisher's Helper
D. Valu Grocer
____ refers to market situation where one firm completely controls a broad
product-market.
A. Monopoly
B. Oligopoly
C. Pure competition
D. Monopolistic competition
E. Collectivist competition
Percy Malik, purchasing agent for Black Mountain Chemical Industries, routinely signs
purchase orders for office supplies without further consideration. At Black Mountain,
purchases of office supplies are
A. a modified rebuy.
B. a necessity.
C. Somewhat Insignificant Commodity (SIC) items.
D. a selective rebuy.
E. a straight rebuy.
Which of the following types of products is LEAST sensitive to environmental changes,
according to the "continuum of environmental sensitivity"?
A. Industrial products.
B. Commodity-type consumer products.
C. Consumer products linked to cultural variables.
D. "Me-too" products.
E. Fad products.
GEICO's aggressive advertising campaign of the late 1990s was designed to accomplish
which of the following objectives?
A. Target the low-risk market of federal employees
B. Win customers away from established competitors
C. Target the high-risk market of military personnel
D. Enable the company to avoid filing bankruptcy
E. Continue widespread recognition of the brand
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.
A firm is doing a marketing cost analysis involving two products, three target markets,
and $6 million in advertising costs. The firm should:
A. allocate $2 million of the advertising costs to each target market.
B. allocate these costs to general overhead.
C. determine the purpose of the advertising and allocate costs to products and target
markets accordingly.
D. allocate these costs to each product and target market on the basis of their percentage
of total sales.
E. allocate $3 million of the advertising costs to each product.
___________ stores are usually strong in customer services, including credit,
merchandise return, delivery, and sales help.
A. General
B. Limited-line
C. Department
D. Specialty
E. Luxury
The product life cycle helps marketers understand market trend patterns related to all of
the following except:
A. the cycle of any particular individual brand.
B. industry sales and profits for a product idea within a particular productmarket.
C. the growth and subsequent decline of sales for a product category.
D. the impact of increased competition on a new product idea over time.
E. the need for marketers to adjust their marketing mixes for a product category over
time.
When selling ____ products, a marketing manager should recognize that consumers
have low price sensitivity and the product should have widespread distribution near the
probable point of need.
A. homogeneous
B. specialty
C. emergency
D. impulse
E. regularly unsought
"Promotion" does NOT include:
A. personal selling.
B. sales promotion.
C. advertising.
D. introductory price dealing.
E. publicity.
The total personal selling expense of a business is likely to be most stable under which
of the following scenarios?
A. All of the company's salespeople receive straight salary compensation.
B. All of the company's salespeople receive straight commission compensation.
C. All of the company's salespeople receive combination plan compensation.
D. The company pays straight commission only to its high volume salespeople.
E. The company pays straight salary only to its low volume salespeople.
The process of marketing strategy planning is about:
A. identifying as many market opportunities as can be imagined.
B. narrowing down possible market opportunities to the most attractive ones.
C. creating products that managers like.
D. choosing the most profitable market opportunity, regardless of the firm's current
abilities and resources.
E. figuring out how to offer products at the lowest possible price.
Which of the following is NOT an example of sales promotion?
A. A contest to motivate a company's own sales force.
B. Point-of-purchase displays at the checkout counters of a retail store.
C. Price-off coupons distributed to consumers' homes.
D. A trade show for wholesalers.
E. All of these are examples of sales promotion.
