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What does the AIDA concept stand for?
A. Attention, Interest, Desire, Action
B. Alertness, Interest, Develop, Appeal
C. Attention, Involvement, Desire, Action
D. Alertness, Involvement, Desire, Appeal
E. Action, Involvement, Desire, Attention
When Chase Bank mails a 30-day offer for a new pre-approved credit card with a
$2,000 limit to a college student, this is an example of:
A. direct-response promotion.
B. integration.
C. publicity.
D. indirect-response promotion.
E. mass selling.
Some nonprofit organizations set prices to increase market share because
A. it is a regulatory requirement.
B. they would never do any business otherwise.
C. they are trying improve their image.
D. they wish to monopolize the market.
E. they are not trying to earn a profit.
If a supermarket runs an ad for a gallon of milk in the local newspaper at a price that
many consumers will recognize as a low price for this product, this is an example of:
A. Reference pricing
B. Price lining
C. Bundle pricing
D. Leader pricing
E. Bait pricing
Charles Brothers Bakery's sales efforts to local schools emphasizes personal selling
without any e-commerce support. If Charles Brothers Bakery is doing things right, we
would expect that the situation of selling to schools requires:
A. High relationship building and a low degree of standardized information exchange
B. Low relationship building and low degree of consumer product awareness
C. Low relationship building and high degree of standardized information exchange
D. High relationship building and high consumer technology understanding
E. Low relationship building and low degree of standardized information exchange
Franchise operations:
A. generally have very loose ties between the franchisor and franchise holders.
B. are expected to decline in the future because the service sector of the economy is
failing.
C. currently account for about a third of all retail sales.
D. do not form chains.
E. None of these alternatives is true.
While watching a television program, Liza gets a phone call just as a commercial is
starting. She presses the "mute" button on the television's remote control and takes the
call, so she pays no attention to the commercial. In terms of the communication process,
the telephone call is an example of:
A. Encoding.
B. Noise.
C. Decoding.
D. Feedback.
E. The message channel.
Which of the following statements about a situation analysis is False?
A. A situation analysis is mainly a study of new information that is not already
available.
B. A situation analysis may involve informal discussions with knowledgeable people.
C. A situation analysis may help educate a researcher who is dealing with an unfamiliar
subject.
D. A situation analysis should include finding relevant secondary data.
E. None of these statements about a situation analysis is False.
If Climbing High Ladder Company produced ladders that were unstable and caused
many injuries, the ___ has the power to force the company to recall its product.
A. Consumer Product Safety Commission
B. Food and Drug Administration
C. Federal Trade Commission
D. Environmental Protection Agency
E. Consumer Protection Agency
A pricing objective that seeks a specific level of profit is a:
A. profit maximization objective.
B. value objective.
C. sales-oriented objective.
D. target return objective.
E. status quo objective.
A mission statement has the following purposes except:
A. to keep managers working towards a common purpose.
B. to communicate the firm's basic reason for being.
C. to help firms decide what opportunities to pursue.
D. to help firms decide what opportunities to avoid.
E. to provide detailed goals and plans.
With respect to marketing control,
A. all cost records should be kept in the marketing department.
B. faster feedback can often be the basis for a competitive advantage.
C. many advances have been made, but there is still no effective way for a manager to
be sure that a product is actually selling to the intended target market rather than to
some other group.
D. All of these are true.
A producer makes an item for $32 and sells it with a 50 percent markup to a wholesaler.
The wholesaler then applies a 20 percent markup. A retailer then uses a 60 percent
markup. The final retail selling price is:
A. $200.00.
B. $73.60.
C. $64.00.
D. $80.00.
E. Cannot be determined without stockturn information.
According to the text, micro-marketing may cost too much because:
A. too many managers seize on whatever strategy seems easiest.
B. too many managers are slow and bureaucratic.
C. too many managers jump on the "what's new" bandwagon without a strategy that
ensures customer satisfaction and company profits.
D. too many managers have the mentality "that's not the way we do things."
E. All of these are reasons why micro-marketing may cost too much.
During the sales decline stage of the product life cycle:
A. firms with strong brands may make profits almost until the end.
B. no profits are earned.
C. price competition usually declines.
D. brand loyalty declines.
E. monopoly is typical.
Franchisors:
A. account for about a third of all retail sales.
B. often provide franchise holders with training.
C. usually receive fees and commissions from the franchise holder.
D. are especially popular with services retailers.
E. All of these alternatives are correct for franchisors.
Which of the following statements about the learning process is TRUE?
A. A cue is a strong stimulus which drives an individual.
B. Learning occurs only when a drive is satisfied.
C. Cues are the causes of drives.
D. Reinforcement strengthens the relationship between a cue and a response.
E. All of these statements about the learning process are TRUE.
Regarding supermarkets, which of the following statements is TRUE?
A. They average less than $5 million a year in sales.
B. Net profits after taxes usually amount to about 3 percent of sales.
C. Compared to super warehouse stores, they offer lower prices and more service.
D. None of these statements is TRUE.
Myra Martinez was just named Treasure Island, Inc.'s "marketing manager"with
responsibilities for short-run policy planning of the firm's advertising, sales, marketing
research, purchasing, and distribution efforts. Apparently, Treasure Island is operating
in the ______________ era.
A. market-oriented
B. production
C. marketing department
D. marketing company
E. sales
The following headlines are for articles from the WALL STREET JOURNAL. Which
article is most likely to be reporting a macro-marketing topic?
A. "Mercedes Goes after Luxury Sport Utility Buyers."
B. "Adidas Jumps as Footwear Competition Heats Up."
C. "Drugstore Chain Aims at Seniors."
D. "Hardee's Fried Chicken Takes on KFC."
E. "DVD Popularity Leads to More DVD Retailers."
A good sales manager knows that:
A. order takers usually do very little aggressive selling.
B. order takers can be used by wholesalersbut not by producers.
C. order getters complete almost all sales in our country.
D. whenever possible, order takers should be replaced by order getters.
E. All of these alternatives are correct.
For six months Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing
manufacturer of organic foods. After graduating college, she worked for four years as a
sales rep for a nationally known food company. But, she jumped at the chance when
SDF contacted her about becoming marketing manager for its breakfast foods division,
which sells dry cereals and a pancake mix.
Kim spent the first few months on the job trying to better understand SDF, its product
line, and marketing strategy. She reviewed the company's past marketing research,
commissioned new research, and talked to both consumers and retailers. Now, the CEO
of the company wants her thoughts on what the company's marketing strategy should be
for the next few years.
Her research indicates that among cereal customers there are at least five segments of
customers who use SDF products.
a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals.
These customers often go out of their way to visit a store with their favorite SDF cereal
and buy only that product at the store.
b) Another segment, the regulars, buys SDF cereals without much thought. For them it
is just part of their routine and, if you ask them why they pick the cereal, they'd say it's
just a habit.
c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They
view all organic cereals as pretty much the same and buy whichever brand seems to
offer the best deal that week.
d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few
years ago the company took a strong stand in a presidential race-and these customers
resented it. Now, they boycott all SDF foods because of that incident.
e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but
who don't have much awareness of particular organic brand names.
In reviewing how SDF currently brands its products, Kim sees that it is using several
different approaches. The Sunny Day Foods brand is used on most products the
company sells. But a few years ago the company brought out an instant organic oatmeal
with the Hot n Healthy name. SDF also makes cereal sold by a health food chain; the
package for that chain uses the store's own name, Nature's Foods, as the brand name for
the cereal.
Which product class best describes how deal prone customers view SDF cereals?
A. Staples
B. Homogeneous shopping product
C. Heterogeneous shopping product
D. Regularly unsought product
The big problem with average-cost pricing is that:
A. fixed costs are hard to estimate.
B. it ignores the firm's demand curve.
C. it doesn't consider the effect of variable costs.
D. there is no way to include a desired profit per unit.
E. None of these alternatives is correct.
For marketers, the purpose of gathering primary data is usually:
A. to learn what customers think or how they behave in certain situations.
B. to specify what information needs to be obtained and how.
C. to monitor what others are saying online about the company or its products.
D. to define the problem that needs to be solved.
E. to help develop a hypothesis.
Compared to private warehouses, PUBLIC warehouses:
A. are not any more flexible because long-term leases are usually required.
B. may not always be conveniently available or adequate for current product line.
C. require no fixed investment but per unit storing costs are usually higher.
D. reduce managerial flexibility.
E. All of these alternatives are correct.
Roberto Vasquez has never owned a Samsung TV, but his parents owned one and were
not at all satisfied. As a result, Roberto won't even consider buying a Samsung. As far
as Roberto is concerned, Samsung has achieved brand ______________.
A. preference
B. recognition
C. nonrecognition
D. rejection
E. insistence
Darrell Everwine read a review about a new computer program that appealed to him
very much. He decided to try to find the program. However, the new program was in
short supplyalthough other brands with similar features were available. Darrell had to
try seven shops before he finally found the program in stock. For Darrell, this program
achieved brand:
A. preference.
B. insistence.
C. rejection.
D. nonrecognition.
E. recognition.
In which product life cycle stage must companies focus on educating potential
customers about the advantages of a new product concept?
A. Market establishment.
B. Market introduction.
C. Market growth.
D. Market maturity.
E. Sales decline.
Which of the following components of the marketing mix involves the strategic
decision areas of benefits, features, and packaging?
A. Promotion
B. Place
C. Positioning
D. Price
E. Product
Gillette spent $100 million in its first year of advertising for a new type of razor and
blades. All of its advertising was directed at final consumers in the hope that these
consumers would go to retailers and ask for the product by name. This is an example of:
A. Pulling.
B. AIDA.
C. Encoding.
D. Pushing.
E. Decoding.
The MOST USEFUL dimensions for segmenting markets are:
A. Geographic and demographic dimensions.
B. brand familiarity and consumption patterns.
C. social class.
D. benefits sought.
E. It depends on what product-market one is segmenting.
____ is an example of a primary data source.
A. Cost data
B. A marketing information system
C. Company files
D. Observation
E. Library
A salesperson works for a producer, calls on intermediaries and their customers, tries to
develop goodwill while stimulating demand, but doesn't take any orders for the
producer's products. This salesperson is a(n):
A. Order getter.
B. Technical specialist.
C. Missionary salesperson.
D. Order taker.
E. Sales manager.
Regarding the marketing research process, defining the problem
A. is often confused with identifying the symptoms of the problem.
B. can be guided by the marketing strategy planning framework.
C. precisely may have to wait until after a situation analysis has been completed.
D. All of these alternatives are true.
Ethnic markets are becoming more important to marketers because
A. the buying power of ethnic submarkets is decreasing.
B. the median age of Asian Americans, African Americans, and Hispanics is much
higher than that of whites.
C. the number of ethnic consumers is growing at a much faster rate than the overall
society.
D. they make a clear segment with similar backgrounds and common language,
religion, and culture.
E. the birthrate of Asian Americans, African Americans, and Hispanics is lower than
that of whites.
