Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
At the Comfort Inn Web site, a customer can create an account with his preferences for
a smoking or non-smoking room, the type of pillows he likes, early or late check-in and
check-out, and his room location. The hotel keeps track of this information and uses it
whenever this customer reserves a room in the future. This is an example of:
A. Combined target market approach.
B. Diversification.
C. Task transfer.
D. Mass customization.
E. Single target market approach.
Regarding specialty products, which of the following is TRUE?
A. Branding does not play an important role in purchasing specialty products.
B. It is a customer's willingness to search that makes it a specialty product.
C. Shopping for a specialty product involves much comparing of products.
D. It is the extent of searching which the customer has to do that makes it a specialty
product.
E. All of these alternatives are TRUE.
Which of the following is NOT a component material?
A. Paper.
B. Copper wire.
C. Copper ore.
D. Copper screens.
E. None of these, i.e., all are component materials.
Marginal analysis
A. assumes that the firm's total revenue curve is a straight line.
B. bases the analysis on the cost of the first few units sold.
C. explicitly considers demand when calculating price.
D. takes into account the break-even point.
E. None of these alternatives is correct.
In the 1990s, DVDs replaced audiocassettes and floppy disks as the storage media of
choice for music and computers. At which stage of the product life cycle is the DVD
today?
A. Market introduction
B. Market growth
C. Market immaturity
D. Sales decline
E. Market extinction
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 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
High Meadow Mfg. Co. sold its product through wholesalers and retailersallowing the
wholesalers a markup of 25 percent and retailers a markup of 40 percent. If the retail
selling price is $100 and the manufacturer's cost is $30, what markup in dollars did
High Meadow receive on the sale of this product?
A. $5.00
B. $13.50
C. $15.00
D. $10.00
E. $20.00
Raw materials are different from other business products in that:
A. buyers do not seek sources of supply.
B. they require more grading.
C. they require a lot of handling before moving to the next production process.
D. they never involve contract production arrangements.
E. pricing decisions for farm products are more complicated.
Andy Cole sells fiberglass resins and fiberglass wire to the many small sailboat
manufacturers in southern California. He takes title to the products but does not handle
them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to
the sailboat manufacturers. Cole is a:
A. selling agent.
B. cash-and-carry wholesaler.
C. manufacturers' agent.
D. specialty wholesaler.
E. drop-shipper.
If we accept "consumer satisfaction" as the objective of our MACRO-marketing
system, this means that:
A. each consumer should decide how best to satisfy his or her own wants.
B. government planners should choose the kinds of products to be produced.
C. "home economists" will be the best judges of what should be produced.
D. not every consumer should be allowed to decide his or her own wants.
E. consumer educators should choose what products should be produced.
Which of the following is LEAST LIKELY to be in the "Something of Value" part of
the "price equation" for CHANNEL MEMBERS?
A. Service-repair facilities
B. Rebates
C. Price-level guarantees
D. Promotion aimed at customers
E. Convenient packaging for handling
In which of the following distribution channels is the firm most likely to maintain
control of the marketing mix?
A. Direct
B. Indirect
C. Cooperative
D. Layered
E. Horizontal
The whole set of beliefs, attitudes, and ways of doing things of a reasonably
homogeneous group of people is a(n):
A. culture.
B. family.
C. evoked set.
D. social class.
E. reference group.
A company produces three product lines and a different marketing manager is
responsible for each line. Most marketing expenses are specific to each line, but a
common sales force sells all three lines. Sales reps are paid by commission, with a
different commission for each product line. In this case, in a marketing cost analysis,
A. the contribution-margin approach would probably divide personal selling expense
based on commission expense for each product line.
B. a full-cost approach would ignore commission expense since it is not a fixed cost.
C. sales commissions are a variable expense and would not be considered in the
contribution-margin approach.
D. the full-cost approach would be easier to do if all sales reps were paid a straight
salary.
E. None of these is true.
A formal marketing research project usually involves gathering primary data.
A reduction from list price given to intermediaries to get shelf space for a product is a:
A. shelf allocation.
B. brokerage allowance.
C. trade allowance.
D. stocking allowance.
E. push money allowance.
Regarding the manufacturers' market, large firms (with more than 250 employees)
A. account for the majority of the total "value added" by all manufacturers.
B. are very few compared to the many small firms.
C. employ about 44 percent of all people employed in manufacturing.
D. All of these alternatives are true.
_____ involves setting one price for a set of products.
A. Price lining
B. Odd-even pricing
C. Product bundle pricing
D. Bait pricing
E. Price leading
The early antimonopoly (or "procompetition") laws passed in the United States:
A. include the Federal Trade Commission Act and the Clayton Act.
B. began with the Sherman Act in 1890.
C. affect the 4Ps and marketing mix planning.
D. focus more on protecting competition than protecting consumers.
E. All of these are correct.
Regarding media selection:
A. the media available in a country may limit the choices.
B. the low cost of television makes it a "must buy."
C. the use of "mass market magazines" is growing in popularityto cut costs.
D. the only advertising medium available for direct-response ads is mail.
E. All of these alternatives are correct.
Ruth Boller, marketing manager at Hi Mountain Water is looking to learn more about
ongoing plans and implantation are working and how she can plan for the future. This
process is called _____.
A. design
B. forecasting
C. implementation
D. control
E. modeling
Routinized response behavior
A. is most likely when past purchases of similar products have not satisfied the
consumer's needs.
B. is more likely when previous behavior has not yet been reinforced.
C. is most common for purchases where the consumer has much experience in how to
meet a need.
D. increases the time required to make a purchase decision.
E. is likely in a new purchase situation.
With the ___________ approach, the customer and the salesperson work together to
satisfy the customer's needs and solve the problem.
A. Prepared sales
B. Fixed sales
C. Selling formula
D. Consultative selling
E. Differentiated value
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. In regard to 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."
Which pricing policy would be recommended for Ross Pharmaceuticals' new product?
A. meeting competition pricing
B. penetration pricing
C. introductory pricing
D. skimming pricing
E. below-the-market pricing
Which of the 4Ps in the marketing mix is most directly related to the branding strategy
for Apple's iPad?
A. Product
B. Place
C. Promotion
D. Price
"Natural accounts" are:
A. usually allocated to functional accounts by the MIS method.
B. accounts to which various costs are charged in the normal accounting cycle.
C. misleading for calculating a firm's total profitability.
D. usually named to show the purpose for which expenditures are made.
E. All of these.
Which of the following statements accurately describes the collaboration between
marketing managers and market researchers?
A. Marketers explain real marketing problems and request information from
researchers; Researchers conduct tests that provide information to marketers.
B. Marketers conduct tests; Researchers turn data into useful information.
C. Marketers submit bids; Researchers evaluate bids.
D. Marketers gather data from secondary sources; Researchers input data into data
warehouses for computer processing.
E. Marketers conduct tests; Researchers identify marketing problems.
Byron Coffey is a sales rep for a producer of fiberglass roofing shingles. He tries to
persuade building materials wholesalers to switch from competing producers. Byron is:
A. an order taker.
B. an order getter.
C. a supporting salesperson.
What is the best pricing tool marketers have for looking at costs and revenue at the
same time?
A. Break-even analysis
B. Markdown approach
C. Average-cost pricing method
D. Marginal analysis
E. Markup approach
"Selective distribution" means selling through:
A. retailers but not wholesalers.
B. multichannel distribution.
C. all responsible and suitable wholesalers.
D. only those wholesalers and retailers who give the product special attention.
E. only one wholesaler or retailer in each geographic area.
One basic idea of the marketing concept is
A. a production orientation must guide the whole system.
B. an organization should build "fences" around its own departments.
C. survival and success require a profit.
D. a firm should "give customers what it produces best."
E. a firm's obligation to have a positive effect on society.
Buyers at _______ sees their role as being "purchasing agents for their target
customers"?
A. manufacturers
B. government agencies
C. service firms
D. non-profits
E. retailers and wholesalers
In the U.S., grocery store retailers spend about ______ percent of their sales dollars on
advertising.
A. 1
B. 4
C. 7
D. 10
E. 13
