Generation Y refers to:
A. those born from 1978-1994
B. those born since 1994
C. those born from 1965-1997
D. those born from 1945-1964
E. those born before 1945
Answer:
Indirect channels are probably a better choice than direct channels when:
A. the firm has limited financial resources.
B. the product is a consumer product instead of a business product.
C. target customers already have established buying patterns for where to search for the
product.
D. retailers are already conveniently located where consumers shop.
E. all of these make indirect channels a better choice.
Answer:
_______ are the terms of sale offered by different suppliers in response to the purchase
specifications posted by the buyer.
A. Competitive bids
B. Purchasing rebuys
C. Legal bonds
D. Requisitions
E. Auctions
Answer:
The California Dairy Association promotes its milk campaign with the popular tagline,
“Got milk?” Here, the California Dairy Association’s marketing effort focuses on
satisfying what level in the hierarchy of needs?
A. Social
B. Safety
C. Physiological
D. Personal
Answer:
As a product moves through its product life cycle stages:
A. price cutting tends to decrease.
B. competition tends to move toward monopoly.
C. distribution moves from intensive to selective.
D. promotion tends to become less informative and more persuasive.
Answer:
All of the following are true of brokers except
A. they bring buyers and sellers together.
B. they are especially useful when buyers and sellers do not come into the market very
often.
C. they usually have a permanent relationship with the buyer and seller.
D. the broker’s product is information about what buyers need and what supplies are
available.
E. they earn commissions based on completion of transactions between buyers and
sellers.
Answer:
Use this information for question that refer to the Pricing 1 case. (WPI) case.
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers’ salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack’s One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get “at least 10% market share
to stay in the game.” This need obviously influences the company’s pricing decisions.
Jack’s also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors’ prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. Regarding freight charges for its equipment, NPE’s invoice reads, “Seller pays
the cost of loading equipment onto a common carrier. At the point of loading, title to
such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency.”
National Printing Equipment’s new Gutenberg NP201 should probably use:
A. price fixing.
B. skimming pricing.
C. introductory pricing.
D. penetration pricing.
E. seasonal discounts.
Answer:
When a customer calls the 800 toll-free number at L.L. Bean in Freeport, Maine, to
order a new chamois shirt, the person who answers the customer’s questions is a:
A. retailer’s order taker
B. missionary salesperson
C. supporting salesperson
D. retailer’s order getter
E. technical specialist
Answer:
When getting information for marketing decisions, the marketing manager:
A. may use both internal and external sources of information.
B. may need to make some decisions based on incomplete information.
C. may need to rely on his or her own instincts to make some decisions.
D. should have access to ongoing information about business performance.
E. all of these alternatives are correct.
Answer:
Sales jobs are a major part of the U.S. economy. About what percentage of employed
workers in the U.S. are in some type of sales job?
A. 2 percent
B. 5 percent
C. 10 percent
D. 15 percent
E. 20 percent
Answer:
Of the following, the last objectives that a firm should specify are its
A. company objectives.
B. marketing objectives.
C. promotion objectives.
D. advertising objectives.
E. price objectives.
Answer:
When final consumers are willing to spend much time and effort comparing quality and
style-with brand and price being less important-the product is:
A. an inspection product.
B. a heterogeneous shopping product.
C. a homogeneous shopping product.
D. a specialty product.
E. None of these alternatives is correct.
Answer:
Shipping by air
A. is most useful for smaller, high-value items.
B. may reduce handling costs.
C. generally involves higher transportation costs than other modes of transportation.
D. offers greater delivery speed.
E. All of these alternatives are correct for shipping by air.
Answer:
Honda Motor Co. prices its whole line (from the $15,000 Honda Fit economy sedan to
the $40,000 Pilot SUV) so that it offers high quality at reasonable prices. What pricing
policy is Honda using?
A. Cumulative quantity discount
B. Value pricing
C. Bundle pricing
D. Introductory price deal
E. Skimming price
Answer:
Which of the following is the best example of social media driving consumer needs?
A. A web app called Social Bee allows users to create forums for discussions on social
issues.
B. An apparel company setting up a retail store in a new country announces its entry on
its website.
C. A site called WhatsNew encourages people to share reviews and photos of gadgets
they’ve recently purchased.
D. A software application allows marketers to track consumer behavior on their
company’s website.
E. A retail store tracks customer movements through its stores.
Answer:
“Demand-backward” pricing:
A. starts with an acceptable final consumer price and works backward to what
producers can charge.
B. ignores demand estimates.
C. is only sensible when the channel captain is a large retailer.
D. is an average-cost pricing approach.
E. None of these alternatives is correct.
Answer:
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.
Answer:
Competitive advertising
A. tries to develop primary demand for a product category rather than demand for a
specific brand.
B. tries to keep the product’s name before the public.
C. is used to present the company in a favorable light, perhaps to overcome image
problems.
D. may be useful when the product has achieved brand preference or insistence.
E. tries to develop selective demand for a specific brand
Answer:
Regarding selling to organizational buyers,
A. the buyer’s individual needs can be ignored when there is multiple buying influence.
B. purchasing managers are usually more emotional than final consumers.
C. a purchasing manager’s emotional needs should be emphasized as well as his
economic needs.
D. sellers should try to avoid purchasing managers, since they usually can’t make the
final buying decision.
E. All of these alternatives are correct.
Answer:
Retailer life cycles (from introduction to maturity) seem to be:
A. getting longer.
B. getting shorter.
C. staying about the same.
D. changing erratically.
E. none of these is a good answer.
Answer:
You are considering opening a fast-food store. Your fixed costs for the required land,
building, parking lot paving, kitchen equipment, and neon sign will be $1,000,000. The
variable cost will be $1.89 for servings which will sell for $2.89. How many servings
must you sell to break even?
A. 1,000,000
B. 1,200,000
C. 2,890,000
D. 189,000
E. Cannot be determined from the data given.
Answer:
A $50 consumer product which is purchased infrequently is:
A. an unsought product.
B. a convenience product.
C. a specialty product.
D. a shopping product.
E. It might be any of these choices.
Answer:
As a percentage of selling price, transportation costs would most likely be highest for
which of the following?
A. Ammonia
B. Canned soup
C. HD television
D. Pain medication
E. Pea gravel
Answer:
Planning for mass selling involves strategy decisions about:
A. what is to be said to the target customers.
B. how target customers are to be reached.
C. who is the target audience.
D. what kind of advertising is to be used.
E. All of these strategy decisions are involved in planning for mass selling.
Answer:
Which of the following observations concerning different measures of national income
is TRUE?
A. GDP does not include income earned by foreigners who own resources in that
nation.
B. Using GNI can give the impression that people in less-developed countries have
more income than they really do.
C. GNI per capita is a useful figure because it gives some idea of the income level of
people in the country.
D. The less-developed nations account for the biggest share of the world’s GDP.
E. GDP is the only measure of national income.
Answer:
A variant of the clustering approach relies on ____, where the seller adjusts the
marketing effort with information from a database with customer information.
A. customer relationship management
B. corporate governance
C. social audit
D. cluster sampling
E. data warehouse management
Answer:
A S.W.O.T. analysis
A. should help a manager develop a strategy that leads to a competitive advantage.
B. seeks to improve strategy planning by ‘scanning for warnings, omens, and tips” about
competitors’ plans.
C. is not necessary if competitors have already entered the market.
D. defends against potential competitive threats by planning specific ‘safeguards,
weapons, or tactics.”
E. None of these is a good answer.
Answer:
Which of the following is true of selective distribution?
A. It is commonly needed for convenience products and business supplies used by all
offices.
B. It is selling a product through all responsible and suitable wholesalers or retailers
who will stock or sell the product.
C. It is selling through only one intermediary in a particular geographic area.
D. It is making a product available widely enough to satisfy target customers’ needs but
not exceed them.
E. It is selling through only those intermediaries who will give the product special
attention.
Answer:
Customers tend to be more price sensitive
A. the greater the total expenditure.
B. when someone else pays the bill.
C. when someone else shares the cost.
D. the greater the significance of the end benefit of the purchase.
E. the lesser the total expenditure.
Answer:
The government, advertising agencies, newspapers, trade associations, and research
subscription services are all major sources of primary data.
Answer:
Sebastian and Clere Franklin bought a tire recapping facility from a man who had
decided to retire. They were going to convert the building to a studio for dance
lessons-so they wanted to sell off the inventory of recapped tires and equipment for
whatever they could get. The Franklins don’t know any buyers who might be interested
in these products. Which of the following types of wholesalers would be most helpful?
A. Rack jobbers
B. Brokers
C. Specialty wholesalers
D. Selling agents
E. Manufacturers’ agents
Answer:
A retailer’s “Place” may include:
A. a physical store and/or an online store.
B. store size and layout.
C. number of stores.
D. store hours.
E. all of these are included in a retailer’s “Place.”
Answer:
Yakima Valley Produce, Inc. buys artichokes from many small farmers, assembles them
into larger quantities, and ships in carload quantities to a central market where they are
sold to large food processors. This “regrouping activity” is called:
A. bulk-breaking.
B. assorting.
C. sorting.
D. wholesaling.
E. accumulating.
Answer:
Which of the following statements is True regarding the last step in the marketing
research process-solving the problem?
A. In this step, managers use the research results to make decisions.
B. Research needs to have action implications to have value.
C. Managers should be able to apply the research findings to marketing strategy
planning.
D. Research that does not provide information that is useful for decision-making is a
waste of time and money.
E. All of these statements are True.
Answer: