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Which of the following observations concerning introductory price dealing is true?
A. Established competitors usually choose to meet introductory price dealing.
B. They are temporary price cuts to speed new products into a market.
C. They have the same effect as price skimming.
D. They are the same as low penetration prices.
E. The plan is to sustain the price cut for an extended period of time.
Answer:
Value in use pricing
A. does not vary from one product to another.
B. sets a price that will capture some of what customers will save by substituting the
firm's product for the one currently being used.
C. merely sets the price at what customers expect to pay.
D. sets a rather high price to suggest high quality or high status.
E. is determined by online auctions.
Answer:
Products that require a high frequency of scheduled shipments would be least suited to
travel by
A. truck.
B. rail.
C. air.
D. water.
E. pipeline.
Answer:
When studying consumer needs, a marketer should:
A. know that a product may be a want or a need depending on what the consumer has
learned during his/her life.
B. try to understand how the marketing mix can satisfy a set of needs, rather than only
one.
C. realize that he or she cannot create needs, merely identify them.
D. all of these alternatives are correct.
Answer:
Which of the following is NOT part of the five-step marketing research process
discussed in the text?
A. Writing the proposal
B. Analyzing the situation
C. Solving the problem
D. Interpreting the data
E. Defining the problem
Answer:
Which of the following is MOST likely to be classified as a marketing intermediary?
A. Apex Manufacturing, Inc.
B. Lillian's Mini-Market.
C. McGraw Hill/Irwin.
D. Kellogg.
E. Golden Arbor Farms.
Answer:
The need-satisfying offering of a firm is its
A. promotion.
B. warranty.
C. brand.
D. product.
E. relative quality.
Answer:
Dissonance
A. discourages a consumer from considering further information once a purchase has
been made.
B. is likely to result in a consumer buying the same product next time.
C. is more likely to occur with low involvement products.
D. is less likely to occur when a consumer has repeatedly purchased the same product.
E. occurs in the adoption process after a consumer becomes interested in a product.
Answer:
Manuel Acala is a marketing analyst, but made only $28,000 last year because he was
employed only part of the year. He paid $5,000 in taxes, and spent another $10,000 for
food, housing, a car, and other "necessities." Manuel's discretionary income was:
A. $28,000
B. $13,000
C. $23,000
D. $18,000
E. There is not enough information to tell.
Answer:
The Xtreme Football League (XFL) was launched in 2001 by Vince McMahon,
chairman of World Wrestling Entertainment (WWE). It was designed to provide
professional football to American sports fans in the months after the conclusion of the
National Football League (NFL) season. In spite of heavy promotion, lots of
advertising, and a national network television contract, the XFL was a classic product
failure, largely because the quality of play was not good enough to satisfy most football
fans. The league evaporated after one season. This type of failure refutes the frequent
claim of critics that advertising:
A. makes people materialistic.
B. elevates the wrong values.
C. manipulates consumers to buy anything a company chooses to produce.
D. leads to higher prices.
E. All of these alternatives are correct.
Answer:
Which of the following is a QUALITATIVE screening criterion for evaluating
opportunities?
A. Sales target for the firm.
B. Profit target for the firm.
C. Kind of business the firm wants to be in.
D. Return on investment (ROI) target for the firm.
E. None of these is a QUALITATIVE screening criterion.
Answer:
Regarding supplies,
A. new-task buying is typical with most purchases.
B. only one supplier is generally available.
C. branding is not important for maintenance and small operating supplies.
D. breadth of assortment is important, but dependability is not.
E. None of these alternatives is correct.
Answer:
A retailer buys a particular product for $4. To make a profit, the retailer adds $2 to
cover operating expenses and provide a profit. The percentage markup on the $6 selling
price is
A. 50 percent.
B. 33.33 percent.
C. 100 percent.
D. 20 percent.
E. 25 percent.
Answer:
All of the following are true of a job description except
A. provides a basis for how salespeople should be paid.
B. lists routine prospecting and sales report writing tasks.
C. provides clear guidelines about what selling tasks the job involves.
D. lists general tasks to be performed but doesn't get too specific.
E. provides a basis for seeing how salespeople should be trained.
Answer:
In its ads, Clorox touts the effectiveness of its Disinfecting Wipes by claiming that they
disinfect better than those made by Windex, a competing brand. This is:
A. reminder advertising.
B. comparative advertising.
C. selective advertising.
D. institutional advertising.
E. primary advertising.
Answer:
Which of the following statements about direct-to-customer channels is False?
A. Most consumer products are sold via direct-to-customer channels.
B. Producers must sometimes use direct-to-customer channels because suitable
intermediaries are not available.
C. Many business products are sold via direct-to-customer channels.
D. Service firms often use direct-to-customer channels.
E. "Direct marketing" does not mean that a firm uses direct-to-customer channels.
Answer:
Regarding break-even analysis, a good marketing manager knows that:
A. a high fixed-cost contribution per unit will lead to high profits.
B. assuming a straight-line total revenue curve incorrectly suggests that any quantity
can be sold at the assumed price.
C. break-even analysis is useless for comparing pricing alternatives.
D. the usual straight-line total cost curve applies only when economies of scale exist.
E. All of these alternatives are correct.
Answer:
The stage of the product life cycle characterized by informative promotion but little
customer awareness of a product is:
A. market introduction
B. market growth
C. market maturity
D. sales decline
E. market extinction
Answer:
Which of the following best illustrates adjusting "discrepancies of assortment?"
A. General Motors makes Hummer for one product-market and Chevrolet for another
product-market.
B. A hardware store sells all the hardware items wanted by most people.
C. Over 310 million U.S. consumers are served by approximately 330,000
manufacturers.
D. RCA sold more than 2,000,000 TVs last year.
E. Three firms produce over 60 percent of all the DVD players sold in the United
States.
Answer:
Which of the following is true of direct distribution?
A. It requires a significant investment in facilities.
B. It reduces a producer's need for working capital.
C. Direct distribution always serves customer needs better and at a lower cost.
D. Most firms selling consumer products rely on direct distribution.
E. It is easy to change customer buying patterns from indirect distribution to direct
distribution.
Answer:
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.
Answer:
Sanders Beverages, Inc. is targeting non-juice drinkers with a new line of healthy fruit
juices. Identify the segmenting dimension most likely being used by Sanders
Beverages.
A. Geographic
B. Behavioral
C. Geodemographic
D. Demographic
E. Urgency to get need satisfied
Answer:
A marketing analyst for a chicken processor reports that a rising percentage of people
are eating chicken because it has less fat than beef. Clearly, this firm's opportunities
may improve with this change in the
A. technological environment.
B. cultural and social environment.
C. economic environment.
D. political and legal environment.
E. competitive environment.
Answer:
To encourage potential buyers to purchase a ticket to its upcoming concert, a rock band
posts a YouTube video of an earlier performance on Facebook and on the website of its
next performance. This is an example of:
A. single-customer marketing.
B. advertising.
C. publicity.
D. personal selling.
E. sales promotion.
Answer:
______ refers to the people to whom an individual looks when forming attitudes about
a particular topic.
A. Family
B. A social class
C. An ethnic group
D. A focus group
E. A reference group
Answer:
To encourage potential customers to buy a recently-released book, Amazon.com
provides online reviews written by others who have already read the new book. This is
an example of:
A. single-customer marketing.
B. advertising.
C. publicity.
D. personal selling.
E. sales promotion.
Answer:
Use this information for question that refer to the Sporting Products, Inc. (SPI) case.
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 cost-to 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 $60-with 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.
When Sports Depot temporarily lowers the price of basketballs, it is using:
A. bait pricing.
B. leader pricing.
C. value in use pricing.
D. psychological pricing.
E. prestige pricing.
Answer:
Rizzo Shoes sells through ________ channel system. Rizzo has informal agreements
with its wholesalers and retailers-they cooperate pretty well by placing orders, and
sharing inventory and sales information over a computer network.
A. a contractual
B. a traditional
C. a power leadership
D. a corporate
E. an administered
Answer:
Because companies are likely to be most familiar with their own operations,
____________ opportunities are usually the easiest to pursue.
A. market penetration
B. product development
C. market development
D. diversification
E. All of these are equally easy.
Answer:
______________ means selling a product through only one wholesaler or retailer in a
particular geographic area.
A. Exclusive distribution
B. Direct distribution
C. Intensive distribution
D. Multichannel distribution
E. Selective distribution
Answer:
