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A warranty must be available for inspection before a purchase is made.
Answer:
Micro-marketing often does cost too much because many firms improperly blend the
four Ps and misunderstand both their customers and the market environment that affects
their operation.
Answer:
The idea of a decision process implies that consumers always apply rational processes
in their buying decisions.
Answer:
It is primarily the sales manager's job to decide what types of information technology
tools salespeople need and how they will be used.
Answer:
Exporting has an advantage compared to other types of international involvement,
because it is usually easier to drop or change arrangements as the firm's needs change.
Answer:
There are two kinds of quantity discounts: cumulative and accumulative.
Answer:
Market segmentation applies only to consumer goods and services; it cannot be applied
to business products.
Answer:
A firm is most likely to rely on customer relationship management (CRM) approaches
when it does not have a database of information on individual customers.
Answer:
Most wholesalers and retailers pay very close attention to each item they handle,
treating most products as new-task purchases.
Answer:
The Internet is making it faster and easier for organizational buyers to use competitive
bidding procedures.
Answer:
Effective marketing in an advanced economy is difficult because producers and
consumers are often separated in several levels.
Answer:
A marketing manager who is able to use qualifying dimensions in forming market
segments will not need to worry about determining dimensions.
Answer:
One advantage of the major mass media is that the advertiser does not have to pay for
the whole audience the media delivers, but instead just pays based on the number of
potential customers in the audience.
Answer:
Multiple buying influence means that several people except top management share in
making a purchase decision.
Answer:
An intranet works like the Internet but access is limited to a company's employees.
Answer:
Marketing-oriented managers think of segmenting as a disaggregating process.
Answer:
Ignoring demand is the major weakness of average-cost pricing.
Answer:
Observingas a method of collecting datashould focus on a well-defined problem.
Answer:
A marketing manager should seek help from research only for problems where the risk
of a decision can be greatly reduced at a reasonable cost.
Answer:
A marketing model displays up-to-the-minute marketing data in an easy to read format.
Answer:
The problem with target marketing is that it limits the firm to small market segments.
Answer:
Applying the experimental method in marketing research usually means the responses
of groups are compared.
Answer:
Traditional accounting reports are usually too general to be of much help to the
marketing manager in controlling marketing plans.
Answer:
Marketing research focuses on changing information needs while an MIS focuses on
recurring information needs.
Answer:
A chemical company might use institutional ads to highlight its concern for the
environment.
Answer:
A mission statement sets out the organization's basic purpose for being.
Answer:
In the seven-step approach, the basic comfort needs (heating and cooling, a good bed, a
clean bathroom) and other needs like a telephone and safety/security are the
determining needs.
Answer:
Selling stock is a common way to raise money for capital and involves selling shares in
the ownership of the company.
Answer:
Empowerment means giving employees the authority to correct a problem on their own.
Answer:
When the target market is large and spread out, mass selling may be less expensive than
personal selling.
Answer:
Marketing costs go down and customer satisfaction goes up in all exchanges handled by
e-commerce.
Answer:
3-D televisions are very new products in the U.S. market. They are in the __________
________ stage of the product life cycle.
A. market maturity
B. market introduction
C. market growth
D. sales decline
Answer:
Consumer emphasis on fitness has created opportunities for firms like Nike, Nautilus
and Schwinn, and illustrates the impact of the changing:
A. technological environment.
B. economic environment.
C. competitive environment.
D. cultural and social environment.
E. political and legal environment.
Answer:
Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about
how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI
sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent
markup and most of its 'sport shop" retailer customers, like Robinson's Sporting Goods,
use a 33 percent markup to arrive at the price they charge final consumers. However,
one fast growing retail chain, Sports Depot, only uses a 20 percent markup for
basketballs, even though it pays Wholesale Supply the same price as other retailers.
Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them
at costto draw customers into its stores and stimulate sales of its pricey basketball
shoes.
Sports Depot is also using other pricing approaches that are different from the sports
shops that usually handle SPI products. For example, Sports Depot prices all of its
baseball gloves at $20, $40, or $60with no prices in between. There are three big bins -
one for each price point.
Todd is also curious about how Sports Depot's new strategy to increase sales of tennis
balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit
groups who resell the balls to raise money. For example, a service organization at a
local college bought 2,000 tennis balls printed with the college logo. Sports Depot
charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print
the logo. The service group plans to resell the tennis balls for $2.50 each and contribute
the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is
considering adding tennis racquets to the lines it produces. This would require a
$500,000 addition to its factory as well as the purchase of new equipment that costs
$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd
thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow
most retailers to add their normal markup and make a profit. However, if Sports Depot
sells the racquet at a lower than normal price other retailers might decide to carry it.
By pricing below other retailers, Sports Depot apparently:
A. hopes to achieve status quo pricing objectives.
B. wants to set prices based on "value in use."
C. relies on a high margin percent.
D. sees this as an oligopoly market.
E. expects a high stockturn rate.
Answer:
Retail stores that sell 'seconds" and "irregular" products at discount prices are
flourishing all over the country. These stores are needed because of what regrouping
activity?
A. Accumulating
B. Bulk-breaking
C. Sorting
D. Assorting
E. None of these is a good answer.
Answer:
Behavioral targeting
A. tries to place ads on websites that are designed to appeal to the firm's target market.
B. decides how the messages will reach the target audience.
C. allows advertisers to pay only when a customer clicks on the ad and links to the
advertiser's website.
D. tries to reach target customers who are actually interested in what the firm has to
communicate.
E. delivers ads to consumers based on previous websites the customer has visited.
Answer:
Excess capacity may exist because there is _____ demand for what a firm can produce
or there's _____ competition.
A. high; too much
B. little; too little
C. high; no
D. little; too much
E. no; too little
Answer:
A publisher of photography books finds that it is cost-effective to print 10,000 or more
at a time. But a bookstore orders only a few copies of each book since its customers
want to select from a wide variety. This example shows
A. why discrepancies of quantity occur.
B. why both discrepancies of quantity and assortment occur.
C. neither discrepancies of assortment or quantity.
D. why discrepancies of assortment occur.
E. multichannel distribution.
Answer:
Regarding the five stages in marketing evolution:
A. Few firms have graduated to the marketing company era.
B. For most firms, the sales era continued until at least 1950.
C. In the marketing department era, firms began to do long-run planning.
D. The production era was the first era to evolve.
Answer:
Pop Soda Co. wants to increase sales of its existing carbonated drinks by making them
more convenient, so it's making the drinks available at more stores in its present areas.
This is an example of:
A. Market penetration.
B. Differentiation.
C. Product development.
D. Diversification.
E. Market development.
Answer:
A typical problem for limited-line retailers is that:
A. it is almost impossible for them to satisfy any particular target markets better than
other types of retailers.
B. their marketing strategy usually relies only on low price.
C. they usually cannot carry enough items in a line for any customers to find what they
want.
D. many of the items they carry are slow moving.
E. All of these are problems for limited-line retailers.
Answer:
Reference group influence is likely to have the strongest effect on the particular
BRAND of ______________ purchased.
A. dishwasher detergent
B. frozen peas
C. batteries
D. watch
E. Reference group influence would be about the same for each of these products.
Answer:
A complete product-market definition includes all the following descriptions except:
A. what is the product type.
B. who are the firm's competitors.
C. what customers needs will be satisfied.
D. which customer types will desire the product.
E. in which geographic region will the firm compete for customers.
Answer:
DIRECT competitive advertising:
A. aims for immediate buying action.
B. tries to develop primary demand.
C. is only seen in newspapers.
D. only uses direct mail.
E. stresses specific product advantagesso the target customers will buy the advertised
brand when they are ready to buy.
Answer:
The following terms appeared on an invoice dated May 20 which was sent by a
manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000.
Assuming the retailer paid the invoice on May 30 (10 days after the products were
delivered), how much should he have paid?
A. $1,900
B. $1,800
C. $2,000
D. $1,960
E. $2,040
Answer:
About what percentage of GDP do the developing economies in Latin America and
Africa spend on logistics-related costs?
A. 10 percent
B. 20 percent
C. 30 percent
D. 40 percent
E. 50 percent
Answer:
A low stockturn rate
A. is extremely good for profits.
B. decreases inventory carrying cost.
C. ties up working capital.
D. is usually linked with very low markups.
E. is typical of fresh fruits and vegetables.
Answer:
When a marketing manager searches the Internet to find information about a research
problem, this is an example of a(n):
A. intranet.
B. experiment.
C. hypothesis testing.
D. situation analysis.
E. data warehouse.
Answer:
A wholesaler selling golf carts and mowers to golf courses might also carry grass seed
and grass fertilizer. This would be an example of
A. bulk-breaking.
B. sorting.
C. accumulating.
D. assorting.
E. discrepancy of quantity.
Answer:
_____ refers to the money invested in a firm.
A. Dividend
B. Debt
C. Cash flow
D. Capital
E. Overhead
Answer:
Producers who know something about their target customers' needs and attitudes often
supply their relatively untrained salespeople with a sales presentation in which (1) the
salesperson does most of the talking at the beginning, (2) then brings the customer into
the discussion to clarify the customer's needs, and (3) tries to close the sale. They are
using a:
A. consultative selling approach.
B. quota system.
C. prepared sales presentation.
D. selling formula approach.
E. target market presentation.
Answer:
A 'supercenter":
A. tries to provide all of a customer's routine needsat a low price.
B. probably would not affect nearby supermarkets.
C. is just another name for a mass-merchandiser.
D. is a large department store which uses supermarket methods.
E. None of these alternatives is true for a supercenter.
Answer:
Compared to conventional retailers, which of the following types of retailers added
more convenient service while reducing product assortment?
A. Door-to-door salespeople.
B. Department stores.
C. Specialty shops.
D. Single-line stores.
E. Supercenters.
Answer:
Jackie works in transportation for a company that ships expensive, high quality fish all
across the United States. The perishable nature of her product, the value of freshness,
and the high prices she charges would lead you to recommend which transportation
mode?
A. Airfreight
B. Trucks
C. Railroads
D. Inland waterways
E. Piggyback truck
Answer:
A restaurant chain wants to improve its marketing information function by doing
regular customer surveys using a random sample of consumers, and by placing
comment cards on the tables in all of its locations. This effort would likely be financed
with:
A. Marketing capital.
B. Working capital.
C. Research capital.
D. Long-term capital.
E. None of these.
Answer:
Which of the following statements about direct channel systems is FALSE?
A. There is no reliance on independent intermediaries whose objectives may be
different from the producer's objectives.
B. Suitable intermediaries are always available even when they're needed at the last
minute.
C. The producer can be more aware of changes in customer attitudes.
D. Direct channels are more typical with business products than with consumer
products.
E. None of these statements about direct channel systems is FALSE.
Answer:
Storing of goods is necessary when
A. there is more demand and no supply.
B. quality doesn't match demand.
C. production doesn't match consumption.
D. production doesn't match quality demanded.
E. products are produced in small batches.
Answer:
BeQuick, a fast-food restaurant, has always operated outlets in malls. With a new
strategy that involves opening new outlets that sell the same menu but operate in
airports, zoos, casinos, and military bases, BeQuick is pursuing what type of
opportunity?
A. Product development.
B. Market development.
C. Differentiation.
D. Market penetration.
E. Diversification.
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:
"Product" means:
A. all the services needed with a physical good.
B. a physical good with all its related services.
C. the need-satisfying offering of a firm.
D. all of a firm's producing and distribution activities.
E. a well-packaged item with a well-advertised brand name.
Answer:
Which of the following is LEAST likely to compete in the same generic market with
the others?
A. Pop corn.
B. Soft drink.
C. Napkin.
D. Cookie.
E. Ice cream.
Answer:
All of the following are examples of publicity tools for interactive communication
between a company and consumers or business customers EXCEPT:
A. Facebook.
B. LinkedIn.
C. microblogs.
D. videos.
E. FourSquare.
Answer:
