Regarding adoption curve groups, which of the following is TRUE?
A. By the time the early majority buy a product it is usually in the market maturity
stage of the product life cycle.
B. The early adopters have many contacts outside their own social group, and are
important in spreading information to laggards.
C. Business firms in the late majority group tend to be conservative, smaller-sized firms
with little specialization.
D. The laggard group may be slow to adopt, but it is so large that it is very important to
reach them.
E. None of these alternatives is true.
A consumer products manufacturer wants consumer reaction to its existing products.
Interaction is considered important to stimulate thinking. The firm should use:
A. the observation method.
B. focus group interviews.
C. the GSR (galvanic skin response) method.
D. quantitative interviews.
E. telephone interviews.
Which of the following is NOT a Place decision?
A. Types of intermediaries needed.
B. Degree of market exposure desired.
C. Recruiting, selecting and managing the sales force.
D. Type of distribution channel to use.
E. Customer service level desired.
Which of the following types of firms are collaborators?
A. Marketing research firms
B. Overnight delivery firms
C. Advertising agencies
D. Product-testing labs
E. All of these are collaborators.
When fast food restaurant, Tommy’s Tacos, had poor sales in Central City, marketing
managers closed one outlet on the east side of town and opened two new locations on
the south side of town. These moves represent
A. operational decisions in the product decision area.
B. strategy policies in the place area.
C. strategy policies in the product area.
D. operational decisions in the place area.
E. strategy policies in the promotion area.
Determining the blend of promotion methods is a strategy decision which is the
responsibility of the
A. brand ambassador.
B. finance manager.
C. personnel manager.
D. marketing manager.
E. recruitment manager.
A marketing strategy specifies:
A. a target market and a related marketing mix.
B. all the company’s resources.
C. a target market.
D. a target market and the company’s objectives.
E. a marketing mix.
Which of the following is a TRUE statement about markups?
A. A firm can lose money even when using a high markup.
B. Markup percents are computed as a percent of the cost of the product.
C. It’s easier for a producer to administer the prices consumers pay for products if the
markup used varies from one intermediary to the next.
D. The lower the markup, the lower the profit.
E. None of these statements about markups is true.
Whitewater Corp. is looking for a new vendor for basic plastics because the present
vendor has been inconsistent about meeting delivery schedules. Which of the following
buying processes is the firm’s purchasing agent MOST LIKELY to use?
A. Selective buying
B. Modified rebuy buying
C. Intensive buying
D. New-task buying
E. Straight rebuy buying
E-Z-Go, a producer of golf carts, promotes its carts to other users by advertising them
as an easy and quiet way for workers to get around malls, airports, and big factories.
E-Z-Go is trying to increase its sales through
A. market penetration.
B. differentiation.
C. product development.
D. market development.
E. diversification.
The last step in the new-product development process is:
A. idea generation.
B. commercialization.
C. idea evaluation.
D. development.
E. screening.
Which of the following statements about transporting by rail is True?
A. Rail transportation is the slowest mode of transportation.
B. Rail transportation is the least expensive mode of transportation.
C. Rail transportation is good for long-distance transportation of heavy, bulky items.
D. Railroads are most efficient at handling less-than-carload (LCL) shipments.
E. All of these statements about transporting by rail are correct.
Which of the following do firms using value pricing tend to avoid?
A. Setting a high price only because consumers already know the brand name
B. Building a relationship with a customer which raises their expectations
C. Delivering unexpected services which haven’t been stated to the customer
D. Establishing a price level that gives the target market superior customer value
E. Focusing on customer requirements and adopting a relevant marketing mix
Organizational buying based on a written (or electronic) description of a product is
called buying by ______________.
A. purchasing specifications
B. inspection
C. negotiated contract
“Discrepancies of assortment” means:
A. there are more producers than consumers.
B. consumers want more output than producers make.
C. the difference between the product lines the typical producer makes and the
assortment wanted by final consumers or users.
D. there are more consumers than producers.
E. the difference between the quantity of products the typical producer makes and the
quantity wanted by individual consumers.
A product which becomes part of a buyer’s final product, and still requires more
processing is called:
A. a supply.
B. a component material.
C. a component part.
D. a raw material.
E. an installation.
A good marketing manager will try to:
A. set the desired customer service level before trying to minimize physical distribution
costs.
B. minimize the total cost of physical distribution.
C. maximize the level of customer service provided by his firm.
D. minimize storing time and costs.
E. provide customers with just-in-time delivery service.
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.
If a producer does not have a new-product development process, it ultimately means:
A. the firm lacks financial resources.
B. the firm does not want to be profitable.
C. the company will survive on current products until going out of business.
D. the firm is incapable of innovation.
E. the firm can survive on old products indefinitely.
Regarding human resources, a good marketing manager knows that:
A. All the people affected by a new marketing strategy are under the marketing
manager’s direct control.
B. It is the marketing manager’s job to explain a new marketing strategy, what needs to
happen, and why.
C. Sometimes training must be sacrificed in order to meet objectives for rapid growth.
D. There are no human resource challenges involved in the decision to drop a product, a
channel of distribution, or a customer.
E. All of these are true.
Selling through only one wholesaler or retailer in a particular geographic area is called:
A. Ideal market distribution.
B. Intensive distribution.
C. Selective distribution.
D. Exclusive distribution.
E. Equivalent distribution.
According to the text, your social class level does NOT depend directly on your:
A. type and location of housing.
B. income level.
C. occupation.
D. education.
E. any of these.
Which of the following types of advertising is most appropriate for the awareness stage
of an advertising campaign?
A. Reminder ad
B. Competitive ad
C. Jingle
D. Direct-action retail ads
E. Price deal offers
According to the text, segmenting should be viewed as a(n) ______________ process.
A. assorting
B. mechanical, nonjudgmental
C. “clustering” or aggregating
D. “breaking apart” or disaggregating
E. combining
Which of the following is NOT one of the organizational buying processes discussed in
the text?
A. Straight rebuy buying
B. Modified rebuy buying
C. Important task buying
D. New-task buying
E. None of these, i.e., all are buying processes.
The National Cheese Association’s ad theme “We are making better cheese for you” is
an example of:
A. institutional advertising.
B. cooperative advertising.
C. pioneering advertising.
D. competitive advertising.
E. reminder advertising.
Over the past several years, like other auto manufacturers, General Motors (GM) has
introduced many new models of sport utility vehicles (SUVs) in all of its major
divisions. This proliferation of SUVs and an increase in gasoline prices have caused
sales to level off. In response, General Motors offered rebates of up to $5,000, or
no-interest financing, on selected models of SUVs. The largest rebates went to current
owners of GM vehicles, so that they would replace their current vehicles with a GM
model instead of switching to another brand. The rebates have been heavily advertised
on national television. Profit margins per vehicle have shrunk as a result of these costly
promotions. In what stage of the product life cycle is GM currently operating?
A. Market establishment.
B. Market introduction.
C. Market growth.
D. Market maturity.
E. Sales decline.
Which of the following does NOT support the idea that “MICRO-marketing often
DOES cost too much”?
A. Many firms focus exclusively on their own internal problems.
B. Distribution channels may be selected on the basis of personal preferences.
C. Product planners frequently develop “me-too” products.
D. Costly promotion may try to compensate for a weak marketing mix.
E. Many firms try to maximize profits.
A market-directed economy
A. ensures that voters and politicians agree which problem has to be solved first.
B. concentrates solely on profit generation.
C. guarantees that government aid programs are effective.
D. spreads income evenly among the population.
E. makes efficient use of resources.
Which stage of the product life cycle is the largest profit stage for companies?
A. Market Introduction
B. Market Maturity
C. Stagnation
D. Sales Decline
E. Market Growth
Which of the following is one of the three basic ideas in the “marketing concept?”
A. Resource efficiency.
B. Obtain economies of scale.
C. Profit as an objective.
D. Maximize sales.
E. The president has a marketing background.
When major airlines target business travelers because they travel often and typically
pay at least three times the price for a ticket as leisure travelers, these airlines are
segmenting the market primarily on:
A. income.
B. education.
C. rate of use.
D. ethnicity.
E. age.