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Manufacturers' agents earn higher commissions for introducing new products than they
do for selling established products.
Answer:
Marketing functions are performed by producers, consumers, and a variety of marketing
specialists.
Answer:
Using total quality management to implement marketing plans is one way to improve a
marketing mix.
Answer:
The text credits Chipotle's success to its offering good customer value.
Answer:
Automatic vending accounts for 15 percent of total U.S. retail sales.
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Total fixed costs do not change when output increases.
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In administered channel systems, vertical cooperation is achieved by acquiring firms at
different levels of activity.
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An insurance company might use institutional ads to highlight its concern for safe
driving.
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The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a
firm that uses selective distribution.
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Meeting the competitive price often makes sense for a firm in an oligopoly situation,
because setting a price above the market will usually result in a large loss of sales it
might have gotten at the competitive price.
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The traditional view of promotion has focused on communication initiated by the buyer.
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Transporting costs usually add relatively little to the cost of valuable products.
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Though it is common in the U.S. to use cartoon characters in advertising to children,
both Japan and France limit that practice, and Canada bans any advertising targeted
directly at children.
Answer:
In advanced economies, it is estimated that marketing costs about 50 percent of each
consumer's dollar.
Answer:
The text argues that international competition will actually improve macro-marketing
systems worldwide.
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Pricing a product sold in a foreign market higher than in its domestic market is referred
to as dumping.
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Older people seem to be more open to new products and brands than younger people.
Answer:
If Burger King added tacos to the "burger-oriented" menu in its existing restaurants, it
would be seeking "market development" opportunities.
Answer:
According to the AIDA model, promotion should try to change Attitudes, shape
Intentions, arouse Desire, and cause Activity.
Answer:
Transporting choices in developing countries are usually fewer in number, but cost
more.
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When the total market is not growing a common strategy adopted is to stabilize prices.
Answer:
Magnuson-Moss Act says that producers must provide a clearly written warranty if they
choose to offer any warranty.
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Evaluating marketing effectiveness is impossible.
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When deciding how many salespeople are needed, the first step is to determine how
many sales reps are used by competing companies.
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Each sales manager and salesperson needs to think about the AIDA sequence in
deciding what sales approach to use and in evaluating a possible presentation.
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Consumers use limited problem solving when they put MUCH effort into deciding how
to satisfy a need.
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Company objectives should lead to a hierarchy of marketing objectives.
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A firm's average fixed cost increases as its output increases.
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About 10 percent of the total U.S. labor force is in sales work.
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A large producer with economies of scale always has a competitive advantage over
smaller firms.
Answer:
Product liability means the legal obligation of sellers to pay damages to individuals who
are injured by defective or unsafe products.
Answer:
Brand managers manage specific products, often taking over the jobs formerly handled
by an advertising manager.
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New-task buying is an in-between process where some review of the buying situation is
done.
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A mission statement sets out the strengths and weaknesses of a firm as well as the
opportunities and threats that it faces.
Answer:
If a firm's demand curve is fairly elastic, a penetration pricing policy would be more
suitable than a skimming pricing policy.
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A mission statement should focus on just the key goals for the organization.
Answer:
So far, B2B e-commerce has had little effect on the way organizations make purchase
decisions and deal with suppliers.
Answer:
Small companies that have limited working capital or uncertain markets often prefer to
use straight salary compensation plans.
Answer:
A marketer considering a business opportunity in the U.S. health care market must first
evaluate new rules and regulations originating from:
A. the competitive environment
B. the economic environment
C. the technological environment
D. the legal environment
E. the cultural and social environment
Answer:
Some differences between online and in-store customers include:
A. In-store customers can usually immediately inspect the product.
B. Online customers usually have access to a wider product assortment.
C. In-store customers can usually immediately use the product.
D. Online customers usually have better access to comparative information about
products.
E. All of these differences are correct.
Answer:
"Advertising":
A. is the only form of mass selling.
B. is also called 'sales promotion."
C. is concerned with "promotion" using samples, coupons, and contests.
D. involves direct spoken communication between sellers and potential customers.
E. is any paid form of nonpersonal presentation of ideas, goods, or services by an
identified sponsor.
Answer:
During the development step of new product development, a firm could develop a ____,
an early sample or model built to test a concept.
A. creation
B. concept test
C. prototype
D. ideatype
E. embryo concept
Answer:
When conducting a competitor analysis, it is important for managers to take the
viewpoint of:
A. competitors.
B. the CEO.
C. target customers.
D. supply chain partners.
E. the industry leader.
Answer:
Which of the following newspaper headlines is MOST LIKELY to be a result of
changes in the cultural and social environment?
A. "McDonald's Changes Its Menu to Cater to Low-Carb Dieters."
B. "General Motors Offers Original Equipment Car Stereos with Satellite Radio
Service."
C. "Treasury Department Introduces New Currency to Combat Counterfeiters."
D. "New Projection TVs Are Thinner, Lighter than Traditional TVs."
E. "Gasoline Prices Increase Sharply."
Answer:
If a manufacturer in China offers a product in the U.S. market at a lower price than in
China, this may be a violation of a(n):
A. price-fixing law.
B. price discrimination law.
C. truth-in-advertising law.
D. antidumping law.
E. monopoly law.
Answer:
Gross domestic product (GDP):
A. is affected by economic conditions and the productivity of workers in the country.
B. usually rises when there are bad economic conditions in an economy.
C. is the amount of new capital invested in business in a year.
D. is the total cost of producing all goods and services in a year.
E. is the total market value of goods and services consumed in an economy in a year.
Answer:
When a salesperson for Procter and Gamble calls on key wholesalers to explain why
they should stock and sell a new type of Procter and Gamble shampoo to retailers, this
is an example of:
A. Pulling
B. AIDA
C. Encoding
D. Pushing
E. Decoding
Answer:
American supermarket chain, FoodMart, purchases cheese from five different
manufacturers from around the world to assure its customers can choose among
different types of cheeses at different prices. FoodMart facilitates the macro-marketing
system by helping to address:
A. spatial separation.
B. discrepancies of assortment.
C. separation of values.
D. all of these are correct.
Answer:
When a buyer receives an invoice for $100 with terms of "2/15 net 30" he can expect to
pay:
A. $100 if he pays anytime in the first 30 days.
B. less than $100 if he pays during the first 15 days.
C. $100 if he pays anytime during the first fifteen days.
D. more than $100 if he pays from day fifteen through day thirty.
E. the full $100 if he waits more than 30 days to pay.
Answer:
When new product ideas are chosen based on ratings and comments from customers,
this process is called ______.
A. idea engineering.
B. creative resourcing.
C. reaction engineering.
D. crowdsourcing.
E. idea solicitation.
Answer:
A large food retailer acquiring a cheese factory is an example of:
A. dual distribution.
B. vertical integration.
C. a tying contract.
D. horizontal integration.
E. internal expansion.
Answer:
A supermarket manager should use ______________ advertising to increase store
traffic during the middle of the week.
A. institutional
B. indirect competitive
C. pioneering
D. reminder
E. direct competitive
Answer:
Nature Fresh Cereal does not feel satisfied with the location and amount of shelf space
it is given at Sunshine Health Food Markets. This creates a source of
A. vertical conflict.
B. diagonal conflict.
C. horizontal conflict.
D. parallel conflict.
E. placement conflict.
Answer:
Which of the following statements about economic systems is NOT true?
A. Government has less of a role in market-directed economies than in command
economies.
B. A market-directed economy self-adjusts through producer and consumer choices.
C. Producers always make a profit in a market-directed system.
D. A command economy is more likely to work if the variety of goods and services is
small.
E. Both market-directed and command economies need a macro-marketing system.
Answer:
Use this information for question that refer to the Wire Products Inc. (WPI) case.
Rob Rose sat back to review the portfolio of products his company, Wire Products Inc.
(WPI), has in its product line. The company specializes in making various products for
consumer and industrial uses from hard laminated wire-coated with special paints.
1) WPI's "Wire Closet" products have been on the market for 10 years. Consumers
install the wire shelves and closet rods themselves. The market leader, Closetmaid, has
been selling similar products for more than 20 years, but so far the sales volume and
profits for the market continue to grow. Recently, several new competitors have come
into the market.
2) Three months ago, WPI entered the lawn and garden market with folding fences
made with laminated wire and branded as "Wire Fold-Fence." Previously, WPI had
never made fences or been a player in the lawn and garden market-although other
companies have been making products in this market for years. However, Rob Rose has
discovered that recent sales of wire garden fencing have leveled off and profits are
declining overall. Still, WPI thinks it has some cost advantages and can grow its own
sales and profits in this market.
3) WPI has just developed "Oil Wire," a new concept for the environmental cleanup
market. Oil Wire is coated with a special material that cleans up oil spills. There has
never been a product like this and WPI wants to quickly get the word out about its
benefits. The product is now being rolled out in selective markets.
4) Another business product is "Wire Locker" used for secure storage by gymnasiums
or companies. This style of locker has now gone out of fashion and most customers are
finding better materials to use for lockers. Aggressive selling has helped Wire Locker's
sales stay flat, but the total market for wire style lockers is only half of what it was 10
years ago.
5) WPI's "Wire Window" product is used as a security product to protect glass
windows. It sells to homeowners and retailers looking for additional safety. WPI's sales
of this product have dropped in recent years because competitors have introduced
maintenance-free products. However, the overall market for this type of product
continues to show good growth.
6) WPI is running concept tests of a new wire car-top carrier called "Wire Car Top."
There are other car-top carrier products on the market, but WPI plans to include options
in its carrier that will make it easier to load bikes, skis, and suitcases. "Wire Car Top" is
also very easy to put on and take off of the car because of its light weight and
ease-of-use features. The concept tests are helping WPI analysts develop rough
estimates of costs, sales, and profits.
7) Another new product idea, tentatively called "Wire Tent," is being considered. It
would use laminated wires to create a portable tent frame. This product is currently
being evaluated to determine its fit with the company's objectives and external market
trends.
Rob is thinking about the product life cycle, where each product fits, and what he
should be doing as part of his marketing plan for each of these products.
In which step of the new-product development process is the "Wire Tent"?
A. Screening
B. Development
C. Idea evaluation
D. Idea generation
E. Commercialization
Answer:
Which of the following is NOT a stage in the TRADITIONAL flow of the family life
cycle?
A. Young single
B. Young married without children
C. Young divorced with children
D. Middle-aged married without dependent children
E. Young married with children
Answer:
Chrysler manufactures cars in Detroit and loads them on truck trailers at the factory.
Burlington Northern Santa Fe (BNSF) picks up the truck trailers, loads them on
specially designed rail flatcars, and ships them to St. Louis. There they are delivered by
truck to local dealers. This transportation process is:
A. containerization.
B. multilevel.
C. layered.
D. piggyback.
E. disjointed.
Answer:
Charles Wood, purchasing manager for a company that makes golf carts, posted the
purchase specifications for the seats on a new golf cart model his firm is building. Four
suppliers submitted _____ that included the terms of sale each had to offer.
A. operational linkages
B. an auction
C. negotiated contracts
D. competitive bids
E. defined sales procedures
Answer:
Bank of Omaha is an example of what type of organizational customer?
A. Government
B. Nonprofit
C. Producer
D. Intermediary
E. Resident buyer
Answer:
Nissan's Altima advertises the performance of its new luxury sedan by showing it
side-by-side with competing brands, like Lexus and BMW. This is:
A. primary advertising.
B. institutional advertising.
C. reminder advertising.
D. comparative advertising.
E. selective advertising.
Answer:
______________ means selling a product only through those intermediaries who will
give the product special attention.
A. Multichannel distribution
B. Selective distribution
C. Administered distribution
D. Exclusive distribution
E. Intensive distribution
Answer:
ADT commercials that advertise the value of having a home burglar alarm system
appeals to consumers':
A. personal needs.
B. economic needs.
C. social needs.
D. safety needs.
E. physiological needs.
Answer:
Which of the following statements about total quality management (TQM) is false?
A. Before widespread adoption of TQM, most firms assumed that production defects
were an inevitable part of mass production.
B. Japanese producers of cars, electronics, and cameras showed that production defects
were not inevitable.
C. From a TQM perspective, the cost of lost customers is a minor consequence of poor
quality.
D. From a customer's point of view, getting a defective product and having to complain
about it is inconvenient.
E. TQM methods have been applied to implementation problems other than
manufacturing.
Answer:
In recent years, changes in the social and cultural environment have had a significant
effect on door-to-door selling. Which of the following is MOST likely given the
changes that have occurred?
A. Fuller Brush has seen a dramatic increase in profits from its door-to-door selling
operations.
B. Sarah Coventry Jewelry has started distributing its products through jewelry stores
because of the difficulties of finding someone at home during the day.
C. Avon Cosmetics has found that it needs a larger door-to-door sales force because
dual career families have more income and more demand.
D. None of these changes is likely.
Answer:
A standard markup is often set close to the firm's
A. gross margin.
B. net profits.
C. overheads.
D. operating costs.
E. competitors' costs.
Answer:
Alberto Romez earned $100,000 last year as a Mercedes sales rep. He paid $10,000 in
taxes, and another $25,000 on food, housing, and other necessities. Alberto's
discretionary income was ________________.
A. $75,000
B. $65,000
C. $55,000
D. $45,000
E. $35,000
Answer:
Which of the following statements about intranets is NOT TRUE?
A. Intranets are a system for linking computers within a company.
B. Information is available on demand.
C. An intranet is easy to update.
D. Access to websites on an intranet is unrestricted.
E. Even very small firms may have their own intranet.
Answer:
Pioneering advertising is often needed during the ______________ stage of the product
life cycle.
A. sales decline
B. turbulence
C. market maturity
D. market growth
E. market introduction
Answer:
Macro-marketing examines all the following challenging scenarios except:
A. Producers prefer to manufacture goods in large quantities, but consumers buy in
small quantities.
B. Consumers require a wide assortment of food items, but individual producers can
offer only a narrow assortment of food products.
C. Producers set prices to cover costs and make a profit, but consumers choose goods
based on their ability to pay.
D. Cedar Point Amusement Park would like to attract customers all year long, but its
marketing strategy is currently limited to discount season pass offers during winter
months while the park is closed.
E. Producers tend to locate where it is economical to produce, but consumers are
located in many scattered places.
Answer:
