When a firm’s domestic market is prosperous, marketing managers are less likely to
pursue opportunities in international markets.
Answer:
Digital self-service is particularly effective when the customer needs routine
information on a recurring basis.
Answer:
“Psychological pricing” involves setting prices which end in certain numbers, while
“odd-even pricing” is setting prices which have special appeal to target customers.
Answer:
Marital status, age, and the age of any children in a household are the three
demographic dimensions that determine stage of family life-cycle.
Answer:
Planning for cultural differences in international markets is easier than in domestic
markets.
Answer:
Shopping products are products that are purchased immediately when the need is great.
Answer:
It’s best to think of retailing on the Internet as just another example of how low-margin
mass-merchandisers appeal to large target markets with discount prices.
Answer:
A basic idea in the legal environment in the United States is that attempts by business to
limit competition are considered contrary to the public interest.
Answer:
The Federal Trade Commission encourages bait pricing because it reduces the prices
that consumers pay for products.
Answer:
The cost of replacing defective parts is the biggest cost of poor quality.
Answer:
Potential customers are all alike.
Answer:
Firms should try to develop marketing mixes that make the most of the market growth
stage of the product life cycle-when profits are highest.
Answer:
Discrepancy of quantity means the difference between the lines a typical producer
makes and the assortment final consumers want.
Answer:
Finding “competitive advantages” is important because they are needed for survival in
increasingly competitive markets.
Answer:
A marketing-oriented firm would try to produce what customers want, while a
production-oriented firm would try to get customers to buy what the firm has produced.
Answer:
Business product classes are based on the way that buyers shop for and buy products,
because there is much more shopping for business products compared to consumer
products.
Answer:
In general, sales promotion tries to spark immediate interest, trial, or purchase.
Answer:
Many types of retailers are now establishing a presence on the Internet.
Answer:
A mission statement can help a manager decide which opportunities to pursue and
which to screen out.
Answer:
In the market introduction stage, sales are low as a new idea is first introduced to a
market.
Answer:
Charging a lower price for a competing product may actually hinder sales of that
product.
Answer:
Regarding sales force compensation, straight salary gives the most security for a
salesperson, while straight commission gives the most incentive.
Answer:
One way for a producer to reduce conflict with channel partners is to offer different
products in each different channel.
Answer:
On average, the 500,000 advertising agencies in the United States are large, employing
about 200 people each.
Answer:
A “good” market segment should be composed of people who are as homogeneous as
possible with respect to their likely responses to marketing mix variables.
Answer:
An innovator is more likely to rely on information from an impersonal source (such as
an article in a scientific magazine) than from a company’s salesperson.
Answer:
For communication to be effective, there must be a common frame of reference
between the source and the receiver.
Answer:
The growth of cooperative chains of retail stores is due to the desire of small retailers to
achieve some of the benefits of large-scale corporate chains.
Answer:
Regarding sales force compensation, straight commission increases the firm’s need for
working capital.
Answer:
Government is one of the smallest groups (in sales volume) of customers in the United
States.
Answer:
The Robinson-Patman Act does permit some price differences-but they must be based
on
A. cost differences.
B. the need to make profits.
C. accounting practices.
D. cartel requirements.
E. conscious parallel action.
Answer:
Which of the following is the WORST example of a “generic market”?
A. The information storage market.
B. The recreation market.
C. The designer jeans market.
D. The home improvement market.
E. The entertainment market.
Answer:
When a local bank in Kansas City makes loans to its small business customers, it
charges them an interest rate for borrowing money. Interest rates are part of the
____________ environment.
A. cultural and social
B. economic
C. legal
D. political
E. competitive
Answer:
Marketing managers should remember that there are many variables in the
____________ that affect strategy planning.
A. economic and technological environments
B. competitive environment
C. cultural and social environment
D. political and legal environments
E. all of these environments have variables that affect strategy planning
Answer:
The “universal functions of marketing” do NOT include:
A. financing and risk taking.
B. standardization and grading.
C. producing.
D. transporting and storing.
E. buying and selling.
Answer:
The 80/20 rule-that 80 percent of a company’s sales often come from just 20 percent of
its customers-is a good reason for marketers to use:
A. selective distribution
B. intensive distribution
C. exclusive distribution
D. international distribution
E. multichannel distribution
Answer:
Consumers in the U.S. generate more trash per person than anywhere else on the planet
and packaging is a major contributor to this dilemma.
Answer:
Which of the following statements about innovators is not true?
A. Innovators tend to rely on impersonal and scientific information sources, or other
innovators, rather than salespeople.
B. Innovators often search for information on the Internet, read articles in technical
publications, or look for informative ads in special interest magazines.
C. Innovators tend to be young and well educated and are eager to try a new idea.
D. Innovators need strong social pressure from their own peer group before they adopt a
new product.
E. Innovators are also constituted by specialized business firms who are willing to take
the risk of doing something new.
Answer:
Quiet Drive Mufflers are sold only through Car Parts Now retailers. This retailer has
only one store in any given geographic area to minimize competition between stores.
Quiet Drive Mufflers uses _____ distribution.
A. intensive
B. ideal
C. selective
D. specialized
E. exclusive
Answer:
Customers view regularly unsought products as
A. basically the same.
B. really new ideas that potential customers do not know about yet.
C. undesirable but not unsold forever.
D. different and they want to inspect them for quality and suitability.
E. worth the time and effort to compare with competing products.
Answer:
Which of the following statements about supply chains is FALSE?
A. A supply chain includes all the activities involved in procuring materials,
transforming them into products, and distributing them to customers.
B. A supply chain includes one or more channels of distribution.
C. The primary aim of any firm in a supply chain is to contribute to customer value by
minimizing its own distribution costs.
D. Few firms are willing to give “outsiders” access to information in their computer
systems, so it is likely to be quite some time before computers have the impact on
managing a supply chain that they have had in other areas of business.
E. None of these statements about supply chains is FALSE.
Answer:
Comment cards are generally used to measure:
A. customer satisfaction.
B. product perishability.
C. employee productivity.
D. advertisement TRPs.
Answer:
A manufacturers’ agent sells
A. similar products for several noncompeting producers for a commission on what is
actually sold.
B. different products for several noncompeting producers for a commission on what is
actually sold.
C. similar products for several competing producers for a commission on what is
actually sold.
D. different products for several competing producers for a commission on what is
actually sold.
E. different products for several competing producers for a fixed salary irrespective of
sales.
Answer:
Regarding sales force training,
A. it is rarely necessary to take a successful and experienced sales rep out of the field
for a training program.
B. every new sales rep should go through all parts of a firm’s training program, so that
nothing is missed.
C. training programs should focus on company policies and product information, since
sales presentation skills are best learned in the field.
D. selling skills are best learned with interactive web training programs.
E. None of these alternatives is true.
Answer:
Which of the following statements about the “universal functions of marketing” is
False?
A. These functions do not have to be performed in all macro-marketing systems.
B. How the functions are performed may differ among nations and economic systems.
C. Who performs the functions may differ among nations and economic systems.
D. These functions help to overcome discrepancies of quantity and assortment.
E. None of these statements is False.
Answer:
Nike, Inc. markets several types of athletic shoes, along with clothing and fitness
equipment. In other words, Nike has
A. product components.
B. a battle of the brands.
C. no product assortment.
D. many product classes.
E. several product lines.
Answer:
Since marketers can’t collect information from everyone, they collect information from
a small number of people taken from the larger group they are analyzing-a sample. This
technique is effective when:
A. the sample group is representative of the larger population.
B. the sample group is different from the larger population.
C. the sample group provides identical responses.
D. the sample group is questioned using online surveys.
E. the sample group is questioned using personal interviews.
Answer:
The Magnuson-Moss Act of 1975 focuses on which of the four Ps?
A. Price
B. Place
C. Promotion
D. People
E. Product
Answer:
Marketers at General Mills found that many people try to check e-mail or drive a car
while eating breakfast or lunch. For many of these target customers the real _____
dimension in picking a snack is whether it can be eaten “one-handed.”
A. potential
B. qualifying
C. determining
D. geodemographic
E. time
Answer:
All of the following are examples of secondary data sources EXCEPT:
A. Statistical Abstract of the United States.
B. a phone survey this month of past customers.
C. library sources.
D. trade association studies.
E. government reports.
Answer:
Which of the following statements concerning physical distribution trade-offs is NOT
true?
A. The trade-offs that must be made in the physical distribution area can be
complicated.
B. The lowest-cost approach may not be the best as customer service level varies from
one market to the other.
C. Many firms are trying to address trade-off complications with e-commerce.
D. Most physical distribution decisions involve trade-offs between costs, customer
service level, and sales.
E. An efficient physical distribution system does not have to make trade-offs for
customers.
Answer:
Chains formed by independent retailers to run their own buying organizations and
conduct joint promotion efforts are called:
A. cooperative chains.
B. true values.
C. voluntary chains.
D. retailer chains.
E. franchise operations.
Answer:
In promotion to final consumers:
A. advertising, publicity, and sales promotion are the dominant promotion methods.
B. aggressive personal selling is usually found only in expensive channel systems.
C. reminder ads may be all the promotion that is needed for products that have won
brand preference or insistence.
D. personal selling is effective for consumer electronics and automobiles.
E. all of these alternatives are correct.
Answer:
The CBS network offers consumers hundreds of hours of television viewing each
month, but the typical consumer wants to watch only a few programs. What type of
discrepancy does this create?
A. Discrepancy of assortment
B. Discrepancy of quality
C. Discrepancy of image
D. Discrepancy of variety
E. Discrepancy of quantity
Answer:
A ______________ is a word, letter, or group of words or letters.
A. UPC
B. FTC
C. trademark
D. SIC
E. brand name
Answer:
Underlying any economic environment is technology which affects:
A. how the economy’s resources are converted to output.
B. how quickly technological developments lead to new consumer protection laws.
C. how competitors react to each other.
D. how aggressive competitors are in planning new marketing strategies.
E. how fast consumer attitudes change.
Answer:
The social class system in the U.S.
A. does not affect how people spend, but does affect how they save.
B. may put people with the same income level in different social classes.
C. is based on a person’s educational level.
D. is much more rigid than in Europe and Asia.
E. does not affect people’s attitudes.
Answer:
Which pricing policy is probably “best” for a profit-oriented, low-cost producer who is
introducing a new product into a market with elastic demand and is expecting strong
competition very soon after product introduction?
A. Skimming pricing
B. Introductory price dealing
C. Meeting competition pricing
D. Penetration pricing
E. Status quo pricing
Answer:
Selecting “good, well-qualified” salespeople can be aided by:
A. multiple interviews with company executives.
B. systematic selection procedures.
C. good job descriptions.
D. background checks.
E. All of these alternatives are correct.
Answer:
At Home Depot, a customer can purchase a gallon of one-coat paint that contains the
ingredients for both a primer and a color. What is the primary economic need being
satisfied by this type of paint?
A. Dependability in use
B. Economy of purchase
C. Improvement of earnings
D. Convenience
Answer:
Happy Feet shoe company’s strategic policy states “Carry as limited a line of colors,
styles, and sizes as will satisfy the target market.” This policy best relates to which
decision area of the marketing mix?
A. People
B. Place
C. Promotion
D. Price
E. Product
Answer:
The main difference between a “marketing strategy” and a “marketing plan” is that:
A. time-related details are included in a marketing plan.
B. a marketing plan includes several marketing strategies.
C. a marketing strategy provides more detail.
D. a marketing strategy omits pricing plans.
E. a marketing plan does not include a target market.
Answer:
Which of the following is most consistent with the marketing research process
discussed in the text?
A. “We know that time is always short, so as soon as we define the problem we get on
with our data collection.”
B. “We pay a lot for marketing research experts, so our managers don’t waste time
trying to figure out how projects should be conducted.”
C. “We always use mail surveys, so that we won’t have to worry about nonresponse
problems.”
D. “Secondary data is often all we need to solve our problems.”
E. None of the statements is a good answer.
Answer:
The “adoption curve” shows that:
A. most new products are introduced too slowly.
B. the marketing plan for a new product should schedule most of the promotion
spending right when the product is first introduced.
C. some groups accept a new idea before others.
D. a firm should stick to the same promotion effort as time passes.
E. All of these alternatives are correct.
Answer: