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The text's discussion of Ford's marketing strategy highlights the fact that:
A. creative strategy planning is needed for survival.
B. there is little alternative but to stick with the traditional promotion channels for a
product.
C. most consumers want only established products.
D. once a firm reaches a position as the market leader, competitors are not likely to be a
big problem.
Answer:
The traditional family flow, according to the family life cycle, does not include people
who are
A. middle-aged divorced without dependent children.
B. young married with children.
C. middle-aged married with children.
D. middle-aged married without dependent children.
E. young married without children.
Answer:
Use this information for question that refer to the Centerville Retailers and Wholesalers
case.
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 goods-mostly
men's and women's clothing-with 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 appliances-but
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 is a franchise?
A. Reddy and Sons
B. Cuzco's
C. Publisher's Helper
D. Games Unlimited
Answer:
"Qualitative research" involves:
A. talks with the firm's own managers.
B. questioning to obtain in-depth open-ended responses.
C. "yes-no" questionnaires.
D. studying secondary data.
E. None of these is a good choice.
Answer:
Which of the following statements about convenience stores is False?
A. Many convenience stores also sell gasoline.
B. Prices on individual items are usually lower than in a supermarket.
C. They have begun to compete with fast-food restaurants.
D. They have a more limited assortment than do supermarkets.
E. None of these statements about convenience stores is False.
Answer:
At Priceline's website, visitors can specify the desired price they're willing to pay for a
hotel in Chicago. Priceline then electronically forwards the price to hotels until one
accepts the offer. What pricing policy is Priceline using?
A. Introductory price
B. Bundle price
C. Cash discount price
D. Quantity discount price
E. Flexible price
Answer:
Asa Meyer was just named FireFly Products sales manager, with responsibilities for all
marketing planning. FireFly's president told him that his job is to "outsell the
competition." Apparently, FireFly is operating in the ______________ era.
A. market-oriented
B. production
C. sales
D. marketing company
E. marketing department
Answer:
"Promotion" is NOT concerned with:
A. creating billboard ads.
B. designing new products.
C. publicity.
D. television commercials.
E. personal selling.
Answer:
Which of the following statements about customer value is true?
A. Customer value is the difference between the benefits a customer sees from a market
offering and the costs of obtaining those benefits.
B. The greater the competition, the less important customer value is.
C. The sure way to achieve high customer value is to offer a lower price.
D. It is the manager's view of customer value that matters, not the customer's.
E. None of these statements is true.
Answer:
Advertising spending
A. by U.S. corporations averages about 25 percent of their sales dollars.
B. exceeded $1.5 trillion in 2010.
C. represents only a small portion of what people pay for products.
D. in the U.S. accounts for roughly 50 percent of worldwide advertising spending.
E. All of these alternatives are correct.
Answer:
Kelly Drake, marketing manager for Find-Ur-Way global positioning systems, is testing
the marketing mix for one of her company's new products. The product was introduced
in two different markets with different prices and packages. This suggests the new
product was in the _____ step of the new-product development process.
A. commercialization
B. idea evaluation
C. screening
D. development
E. idea generation
Answer:
Direct _____ involves personal sales contact between a representative of the company
and an individual consumer.
A. marketing
B. selling
C. distribution
D. servicing
E. pricing
Answer:
Which of the following is NOT true regarding organizational buyers?
A. Buyers for all kinds of organizations (governments, nonprofit groups,
intermediaries) tend to buy in much the same way as do manufacturers.
B. The basic aspects of business customer buying behavior tend to be quite similar in
the U.S. and in international markets.
C. Marketing strategies aimed at them are often tailored to each individual customer.
D. Their purchases are made to help their organizations meet the demands for their
products.
E. Their needs are usually harder to define than for final consumers.
Answer:
Regarding business products, which of the following is NOT true?
A. Availability may be more important than low price to a buyer of repair items.
B. Quality of service may be more important than low price to a buyer of professional
services.
C. A broad product assortment may be more important than low price to a buyer of
supply items.
D. Meeting specifications may be more important than low price to a buyer of
component parts.
E. All of these alternatives are true.
Answer:
Use this information for question that refer to the Centerville Retailers and Wholesalers
case.
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 goods-mostly
men's and women's clothing-with 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 appliances-but
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 business uses scrambled merchandising as a big part of its strategy?
A. Katrina's Salon
B. Johnson's Health and Beauty Supplies
C. Cuzco's
D. Publisher's Helper
Answer:
Personal selling
A. is important to business firms, but only about 1 percent of the U.S. labor force does
personal selling work.
B. is often a company's largest single operating expense.
C. requires only that the sales rep have an engaging smile, a big expense account, and
the ability to get along well with people.
D. uses the same techniques around the globe with little variation.
E. None of these alternatives is true.
Answer:
The role of price in a market-directed economy is to:
A. allocate resources and distribute income according to consumer preferences.
B. serve as a rough measure of the social importance of consumer goods and services.
C. coordinate the economic activity of many people and institutions.
D. serve as a rough measure of the value of resources used to produce goods and
services.
E. All of these are true.
Answer:
Jackson Motors, Inc. normally sells its electric motors to all buyers for $100. However,
a competitor offered to sell similar motors to one of Jackson Motors' biggest customers
for only $80 and Jackson Motors offered that customer-but not its other customers-a
$80 selling price. According to the Robinson-Patman Act:
A. Jackson Motors has not violated the law-it is just meeting competition.
B. Jackson Motors is breaking the law-unless it offers to sell motors to all of its
customers for $80.
C. Jackson Motors cannot lower its $100 selling price.
D. Jackson Motors cannot use the "meeting competition in good faith" defense unless it
beats its competitor's $80 selling price.
E. Jackson Motors AND its competitor are both guilty of price fixing.
Answer:
Corporate chains:
A. can get a cost advantage over independent stores by spreading management costs to
many stores.
B. account for nearly 10 percent of retail sales.
C. usually cannot obtain economies of scale in distribution.
D. are declining in importance.
E. None of these alternatives is correct for corporate chains.
Answer:
Estimating a customer's lifetime purchasing potential is important because it helps
marketers to:
A. make a quick sale on a product.
B. decide whether to place ads online or in magazines.
C. recognize that mass marketing is the best way to reach customers.
D. select the right channel of distribution.
E. devise long-range plans and strategies for building customer relationships.
Answer:
Marketing strategy planning is difficult for marketing managers because:
A. they rarely know enough about the needs and attitudes of their target markets.
B. other dimensions of the market environment may force changes in possible
marketing mixes.
C. proposed plans for each of the "four Ps" have to be blended together.
D. competitors are usually trying to satisfy the same or similar needs.
E. All of these alternatives are correct.
Answer:
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.
Answer:
The Internet is an excellent source for primary data, but not secondary data.
Answer:
Differentiating the marketing mix is important because:
A. It can help the firm build a competitive advantage with a group of target customers.
B. It can help target customers to view the firm's position in the market as uniquely
suited to their preferences and needs.
C. It can clarify the position the firm wants to achieve with customers.
D. It can contribute to better blending of marketing mix decisions to achieve desired
objectives.
E. All of these alternatives are true.
Answer:
As output increases, average cost decreases continually because
A. average variable cost per unit is increasing.
B. average fixed cost per unit is decreasing.
C. total variable cost is increasing.
D. total variable cost is decreasing.
E. total fixed cost is reducing.
Answer:
Which method of data collection is typically best when you want respondents to quickly
answer a small number of fairly simple questions?
A. Telephone
B. Mail
C. Observation
D. Experiment
E. Secondary
Answer:
When planning physical distribution, the marketing manager should:
A. set the customer service level so that every customer can get the product exactly
when he wants it.
B. minimize the cost of distribution for a given customer service level.
C. minimize the cost of transportation.
D. maximize the speed of delivery.
E. make use of a distribution center.
Answer:
All of the following are true of the market growth stage except
A. the main job is to persuade customers to buy, and keep buying, the company's
product.
B. the promotion must build primary demand and not just for the company's own brand.
C. more competitors enter the market and mass selling becomes more economical.
D. the promotion emphasis shifts to stimulating selective demand.
E. salespeople and personal selling work towards expanding the number of outlets and
cementing relationships with channel members.
Answer:
Cady ClayWorks offers its customers a 10 percent discount if they buy at least $200,000
worth of products during a year. The products may be bought in one order-or spread out
over several orders. Cady ClayWorks is offering a:
A. cumulative quantity discount.
B. brokerage allowance.
C. seasonal discount.
D. noncumulative quantity discount.
E. cash discount.
Answer:
Use of family brands
A. may involve several firms-if one licenses its brand.
B. is common among both producers and intermediaries.
C. can provide customers with cues about the quality of new products.
D. can be efficient, since the brand name will carry over in the firm's advertising.
E. All of these alternatives are correct.
Answer:
A producer incurred costs of $54,000 for labor and materials and $26,000 for fixed
overhead expenses in a year. The firm produced 20,000 units during the year. If the
producer desires a profit of $1 per unit in the coming year, what should the producer's
selling price be using average-cost pricing?
A. $3.70.
B. $2.30.
C. $5.00.
D. $6.00.
E. Cannot be determined from the information provided.
Answer:
Ravi Singh is working his way through college as an independent distributor of the
Rapier Knife Co. The Rapier product line includes kitchen knives, hunting knives, and
other special-purpose cutlery. Ravi makes sales presentations to potential customers in
their homes. If a customer wants to make a purchase, Ravi buys the knives from Rapier
and sells them to the customer at a markup. For example, Rapier's most popular knife is
a chef's knife that Ravi buys for $25 and resells to the consumer for $50. Ravi:
A. Is part of a direct-to-customer channel.
B. Is engaged in direct marketing.
C. Is engaged in direct selling, but is part of an indirect channel.
D. None of these alternatives is correct.
Answer:
A measure of overall consumer satisfaction in the United States, created by researchers
at the University Michigan, and called the ________________________ is based on the
results of regular interviews with thousands of customers.
A. Index of Consumer Confidence
B. United States Customer Satisfaction Index
C. American Customer Satisfaction Index
D. Survey of Consumer Sentiment
E. Gallup Poll
Answer:
