Factors such as specifying product features, marketing strategy, and financial
projections are a part of which stage of the new-product process?
a. idea generation
b. market testing
c. business analysis
d. development
e. commercialization
Answer:
Which of the following statements regarding pricing constraints is most accurate?
a. Generally, the greater the demand for a product, the higher the price that can be set.
b. At the corporate level, when setting pricing constraints, a firm must disregard current
conditions in the marketplace because they are too temporal for long-term planning.
c. Pricing constraints must always be set, but they are rarely enforced.
d. It is possible to create pricing constraints with the greatest range possible in order to
anticipate any and all changes in the marketing environment.
e. Even if a firm is trying to satisfy its obligations to its customers and society in
general, it should ignore setting pricing constraints.
Answer:
A job analysis is a __________.
a. thorough evaluation of a salesperson’s performance based upon both input and output
objectives
b. detailed assessment to determine what occurred at which stage in the selling process
that prevented a qualified lead from being converted into a sale
c. study of a particular sales position, including how the job is to be performed and the
tasks that make up the job
d. protocol used to assign relative weights to various aspects of the selling process to
create an individualized compensation plan
e. written document that describes the job relationships and requirements that
characterize each sales position
Answer:
The United Way of Greater Toronto (UWGT), like many charities, was sitting on a gold
mine of donor data. Unfortunately, UWGT was not certain how to use that information
to its greatest advantage. UWGT could blanket past donors with generic mailings, but it
could not offer donors information that would convince them to donate to UWGT over
other charities. Which of the following tools would be most useful for the nonprofit
organization to use?
a. a flexible marketing system
b. a database warehouse
c. a customer relationship management plan
d. a competitive intelligence framework
e. a customer-oriented marketing mix program
Answer:
About 60 percent of U.S. companies now include customer satisfaction as a
__________ measure of salesperson performance.
a. demonstrative
b. sensitive
c. cognitive
d. emotional
e. behavioral
Answer:
When Margot called the toll-free number to order one dozen water lilies from the Van
Ness Water Gardens website, the firm was using __________.
a. interactive marketing
b. multichannel selling
c. inbound telemarketing
d. outbound telemarketing
e. social networking
Answer:
Perceiving a difference between a person“s ideal and actual situations that is big
enough to trigger a decision is called
a. problem recognition.
b. alternative evaluation.
c. cognitive dissonance.
d. routine response behavior.
e. postpurchase behavior.
Answer:
Trade promotions refer to
a. promotions where charitable contributions of a firm are tied directly to the customer
revenues produced through the promotion of one of its products.
b. methods used to get a nonpersonal, indirectly paid presentation of a company
products.
c. advertisements that show actual consumers using the product in a barter or
countertrade situation.
d. sales tools used to support a company’s advertising and personal selling directed to
wholesalers, distributors, or retailers.
e. sales promotions that are directed to ultimate consumers and are used to support
advertising and personal selling.
Answer:
What is the assumed shape of the graph of the sales response function?
a. U-shaped
b. S-shaped
c. a straight, downward-sloping line, starting in the upper left and extending to the
lower right of the graph
d. a straight, upward-sloping line, starting in the lower left and extending to the upper
right of the graph
e. W-shaped
Answer:
Ideally, before a new product is developed, a firm should have a precise protocol, which
is a statement that identifies: (1) a well-defined target market; (2) __________; and (3)
what the product will be and do to satisfy consumers.
a. a clear plan for product distribution
b. specific customers’ needs, wants, and preferences
c. an analysis of potential competitors’ products
d. a precise budget of how much can be spent for the marketing program
e. clear financial goals and expectations
Answer:
Tostitos Photo
Consider the Tostitos products photo above. Frito-Lay recognizes that its tortilla chip
products are partial substitutes for one another. The company’s bean and cheese dips
and salsa sauces complement its tortilla chips. Frito-Lay uses this knowledge to set
prices for each item, which is known as
a. bundle pricing.
b. price lining.
c. customary pricing.
d. product-line pricing.
e. loss-leader pricing.
Answer:
Which of the following statements regarding price changes is most accurate?
a. Product prices should change monthly, whereas services prices should change
quarterly.
b. Changing a product’s price too frequently creates antagonism among consumers, yet
changing prices too infrequently makes them feel the company is not improving its
product or service sufficiently.
c. Supermarkets should change their prices every week since customers are expecting
new prices in the weekly flyers they receive in the mail.
d. Companies selling products over the Internet can instantly change their prices
whenever the need arises.
e. Internet price changes are regulated by the Internet Fair Practices Act to protect
consumers against price gouging.
Answer:
A skimming pricing policy is likely to be most effective when
a. consumers tend to be price sensitive.
b. it will be easier to set measurable sales unit goals.
c. a lower price will significantly lower fixed costs.
d. customers are willing to buy immediately at the high initial price.
e. consumers perceive your product to be similar to other products on the market.
Answer:
Figure 1.
According to Figure 1. above, which two marketing strategies would be used if a firm
were not willing to find new markets.
a. product development and market penetration
b. product development and diversification
c. market development and product development
d. market development and market penetration
e. market development and diversification
Answer:
A job description is a written document that describes job relationships and
requirements that characterize each sales position. Once established, the job description
is then translated into a __________.
a. statement of credentials
b. statement of intelligence
c. statement of job qualifications
d. statement of requirements
e. statement of education
Answer:
Advertising is important for products, such as Butterfinger candy bars and Dasani
bottled water, that are purchased frequently and at a relatively low cost. Also, wide
distribution in retail outlets is essential. Why?
a. They are highly sought-after goods that are purchased from wholesalers.
b. They are unsought products, so advertising promotes consumers’ impulse purchases.
c. They are nondurable goods and easily substitutable, so consumers need to be
reminded of their existence.
d. They are shopping products and can easily go out of stock.
e. They are semi-durable goods, so advertising helps to maintain steady demand.
Answer:
Functional discounts are offered to resellers in the marketing channel on the basis of
where they are in the channel and
a. the size of the order.
b. the frequency of the order.
c. when orders are placed during the year.
d. the length of the relationship with the manufacturer.
e. the marketing activities they are expected to perform in the future.
Answer:
Online retail purchases by consumers can be the result of several very different
approaches, which include: (1) using a shopping “bot” to search for a product at the best
price; (2) participating in an online auction; (3) going directly to online malls; and (4)
a. paying dues to become a member of an online discount service.
b. becoming a secret shopper.
c. participating in a buying cooperative.
d. becoming a PURL.
e. becoming a member of a research group that evaluates new products.
Answer:
A threat arising from the introduction of an Internet channel and the potential harm to
trade relationships with a manufacturer’s retailing intermediaries is referred to as
_________.
a. channel conflict
b. channel clash
c. channel chaos
d. channel divergence
e. channel discord
Answer:
Which of the following possible characteristics of consumer buying is LEAST
LIKELY to enter into an organizational buying decision?
a. comparison of product performance with expectations
b. purchase decisions based on the highest overall evaluation
c. alternatives evaluated on important criteria
d. information gathered from internal and external searches
e. problem recognition triggered by self-actualization motives
Answer:
Carla’s Cards uses a __________ to sell and market the entire line of greeting cards.
They design promotional plans, set prices, determine distribution policies, and make
recommendations to Carla on product strategy.
a. manufacturer’s agent
b. broker
c. manufacturer’s branch office
d. manufacturer’s sales office
e. selling agent
Answer:
When using a __________ strategy, there is no change in either the basic product line
or the markets served. Increased sales are generated by either selling more products
through better promotion or distribution or selling the same number of products at a
higher price.
a. product development
b. market development
c. diversification
d. market saturation
e. market penetration
Answer:
Which of the following is a typical example of a fixed cost?
a. taxes
b. raw materials
c. sales commissions
d. building rental expense
e. hourly wages
Answer:
What kind of question is the following? “Place an X” in the space that describes your
feelings about this test.”
Easy __ __ __ __ __ Difficult
Fair __ __ __ __ __ Unfair
a. Likert scale
b. semantic differential scale
c. dichotomous question
d. open-ended question
e. sensitivity analysis question
Answer:
Figure 1.
Figure 1. above represents the six steps in setting price. Which letter represents the step
where a firm would estimate dollar and unit sales revenues?
a. “A”
b. “B”
c. “C”
d. “D”
e. “E”
Answer:
Figure 1.
Figure 1. above shows how marketing researchers and managers use information
technology to turn information into marketing actions. What does “A” represent?
a. external data sources
b. results
c. data warehouse
d. internal data sources
e. buying queries
Answer:
Many consumers buy a subscription for printed newspapers and have them delivered to
their homes by 5:00 AM so that they can read them during breakfast. This purchase is
an example of which situational influence?
a. purchase task
b. social surroundings
c. physical surroundings
d. temporal effects
e. antecedent states
Answer:
The __________ is a common formula-based approach for determining the size of a
salesforce.
a. sales response function
b. account management method
c. workhorse method
d. salesforce allocation method
e. workload method
Answer:
Retail outlets, like products, experience the process of growth and decline, which is
referred to as the
a. retail life cycle.
b. wheel of retailing.
c. product life cycle.
d. retail continuum.
e. retail life matrix.
Answer:
Consumer behavior that results from consumer socialization, passage through the
family life cycle, and decision-making within the family or household is referred to as
__________ influence.
a. psychographic
b. demographic
c. family
d. reference group
e. personal
Answer:
Ace Shoe Company sells heel replacement kits for men’s shoes. It has fixed costs of $9
million and unit variable costs of $5 per pair. Ace is considering a switch from manual
labor to an automated process. New equipment would cost an additional $4 million per
year while lowering variable costs by $3 per shoe repair kit. How many kits would Ace
have to sell at $17 per pair to make $2 million in profits in the next year with the
automated process?
a. 117,648 kits
b. 428,572 kits
c. 705,883 kits
d. 916,667 kits
e. 1,000,000 kits
Answer: