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Marketing encourages the development and spread of new ideas, goods, and services.
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Customer satisfaction is the extent to which a firm fulfills a consumer's needs, desires,
and expectations.
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It is usually necessary for a firm to use a family brand rather than individual brands if it
plans to offer products at different quality and price levels to different target markets.
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ISO 9000 is a way for a supplier to document that its quality procedures meet
internationally recognized standards.
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It is easier for a marketer to work with existing attitudes than to try to change them.
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Component parts usually require much processing to get them ready for assembly.
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There are usually more different strategy possibilities than a firm can pursue.
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When a firm tries to increase sales by offering new or improved products to its present
markets, this is called "product development."
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A marketing manager who is willing to spend enough on persuasive promotion can
usually get consumers to buy anything the company chooses to produce.
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Only industrial nations need an economic system to decide what and how much is to be
produced and distributed by whom, when, to whom, and why.
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Teens play an increasingly minor role in shaping family purchases.
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Differentiation often requires a firm to fine-tune its marketing mix to meet the specific
needs of its target market(s).
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Brand equity is likely to be lower if customers insist on buying a product and retailers
are eager to stock it.
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A target return objective and a profit maximization objective are both profit-oriented
objectives.
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During the "production era" a company focuses on production-because few products are
available in the market.
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A marketing program blends all of the firm's marketing plans into one "big" plan and is
the responsibility of the whole company.
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"Copy thrust" refers to the choice of media to deliver a message to the target audience.
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When the dollar is strong in international exchange, it is easier to sell U.S. products in
overseas markets.
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It is against the law for industrial buyers to accept promotion items from suppliers.
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Scrambled merchandising is carrying any product lines a store thinks it can sell
profitably.
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Online communities are one way for buyers to connect with others who have already
dealt with a similar need.
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A target return pricing objective has administrative advantages in a large company
where there are many divisions to compare.
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Promotion is composed of personal selling, advertising, publicity, and sales promotion.
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A good business manager should adhere to the idea "if it ain't broke, don't fix it."
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Asian Americans are the largest and fastest-growing ethnic group in the United States.
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Gross domestic product is the total dollar value of a country's exports during a one year
period.
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In the confirmation stage of the adoption process, the adopter continues to rethink the
decision and searches for support for the decision.
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A point-of-purchase sample given to consumers is a good example of sales promotion.
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Relationship-specific adaptations involve changes in a firm's product or procedures that
are unique to the needs or capabilities of a relationship partner.
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There are two broad groups of product classes based on the type of customer that will
use the product.
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Loading truck trailers on railcars for shipment closer to the trucks' destination points is
called "piggyback service."
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Generic products are popular in the U.S. and other developed nations, but not in
less-developed nations.
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"Multiple buying influence" means that several people in an organization share in
making a purchase decision, but top management is never involved.
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According to the text, the consumer product classes are based on why consumers use
products.
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Differentiation means that the marketing mix is distinct from and better than what is
available from a competitor.
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Bar codes, UPC numbers, and RFID tags make it easy for computers to monitor
inventory, order stock, and track shipping costs.
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Corporate chains are taking a smaller percentage of retail sales now that consumers are
demanding lower prices.
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Monopolistic competition may result in high costs-and therefore it does not do a good
job of serving consumers the way they want to be served.
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Coke's logo greeting a consumer when they open the refrigerator and see the can is an
example of enhancing the product.
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Which of the following statements about channel systems is true?
A. Traditional channel systems are more efficient because of their greater freedom.
B. Vertical integration works best when discrepancies of quantity are large.
C. Most corporate channel systems use multichannel distribution.
D. Some administered channel systems obtain the advantages of vertically integrated
systems while still retaining flexibility.
E. All of these statements about channel systems are true.
Answer:
When an auto repair shop calls an auto parts wholesaler to order the parts to fix a
wrecked vehicle, the person who answers the repair shop's questions is a:
A. missionary salesperson
B. technical specialist
C. wholesaler's order getter
D. supporting salesperson
E. wholesaler's order taker
Answer:
For which of the following would an organization most likely engage in new task
buying?
A. A small portable welding machine for use in making repairs.
B. A new desktop copying machine.
C. Dishwashing detergent for use in a restaurant.
D. A new desk chair to replace one that had broken.
E. A 10,000 square foot prefabricated steel building for use as a warehouse.
Answer:
High markups on a product could lead to low profits when
A. competitors have higher markups.
B. there are no substitutes.
C. demand is inelastic.
D. sales dip due to high prices.
E. supply is inelastic.
Answer:
Breakthrough opportunities:
A. are so rare that they should be pursued even when they do not match the firm's
resources and objectives.
B. seldom occur within or close to a firm's present markets.
C. are especially important in our increasingly competitive markets.
D. are those that a firm's competitors can copy quickly.
E. are best achieved by trying to hold onto a firm's current market share.
Answer:
Given the American economy's basic objective of meeting consumers' needs as
THEY-the consumers-see them, it is sensible to evaluate our MACRO-marketing
system in terms of:
A. the level of consumer satisfaction.
B. how efficiently our resources are used.
C. the value of the inputs to the system.
D. our standard of living-as measured by GNI.
E. total business profits.
Answer:
Which of the following would be a source of primary data?
A. U.S. Census Bureau reports.
B. Company records on sales, costs, and advertising.
C. Market tests.
D. A Google search.
E. None of these is a good choice.
Answer:
Which of the following is not a marketing strength for a book publisher?
A. Flexible production facilities.
B. A stable of popular authors.
C. A good sales force.
D. An efficient online ordering system for customers.
E. Good relationships with book wholesalers and retailers.
Answer:
The big advantage of qualitative research in marketing is:
A. ease of interpretation.
B. it provides a good basis for statistical analysis.
C. the in-depth responses it provides.
D. the analysis can be handled on a personal computer.
E. None of these is a good answer.
Answer:
Use this information for question that refer to the "Salespeople" case.
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager - and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
Which salesperson probably does the most prospecting?
A. Amy Bowden
B. Wilson Alvaro
C. Melissa Tran
D. Charlie Riggs
Answer:
When a marketing manager scans a firm's MIS to try to obtain information about why
the firm's product sales are down, this is an example of a(n):
A. intranet.
B. hypothesis testing.
C. experiment.
D. data warehouse.
E. situation analysis.
Answer:
The goal of vendor analysis is
A. just getting a low price from the supplier on a given part or service.
B. just satisfying the needs of the customer company.
C. lowering the total costs associated with purchases.
D. satisfying the needs of the individuals who influence the purchase.
E. focusing buyers and sellers on just the economic factors needed to reduce costs.
Answer:
The government market:
A. Is one of the smallest customer groups in the United States.
B. Often has a buying process that includes purchase specifications and competitive
bidding procedures.
C. Purchases a fairly narrow range of products dealing with public safety.
D. None of these alternatives is correct.
Answer:
World Imports/Exports, Inc., is pricing a product sold in a foreign market below the
cost of producing it. It sells the same product at a higher price in its domestic market.
The company is engaging in
A. price dealing.
B. skimming.
C. dumping.
D. fair trade.
E. conscious parallel action.
Answer:
A tire retailer is advertising a very low price on a popular size tire. When a customer
comes into the store, the clerk says the low-priced item is sold out, and tries to convince
the customer to buy the top-of-the-line model-claiming the low priced model is not a
very good buy even at the low price. This is an example of:
A. leader pricing.
B. full-line pricing.
C. value in use pricing.
D. price lining.
E. bait pricing.
Answer:
Regarding alternative transporting modes, which of the following statements is TRUE?
A. Waterways usually provide the lowest cost way of shipping heavy freight.
B. Airways are quickest.
C. Pipelines offer reliability in moving oil and natural gas.
D. Trucks serve the most locations.
E. All of these statements are TRUE.
Answer:
When Ariat gave boots away to popular rodeo riders, other riders began asking for the
Ariat brand and Western stores were eager to sell the boots. Ariat used _____________
groups to influence consumer behavior.
A. social
B. family
C. reference
D. cultural
E. opinion
Answer:
After his Political Science class, Andre only remembered the parts of his professor's
lecture that he agreed with. This is an example of:
A. selective retention.
B. selective exposure.
C. selective information.
D. selective attention.
E. selective action.
Answer:
Which of the following area does not relate to "Place" in the Four Ps?
A. Market exposure
B. Managing channels
C. Kinds and locations of stores
D. Branding
E. Kinds of intermediaries
Answer:
A firm is looking to construct a new office. It puts out a request for proposals from
contractors inviting their price quotations given certain defined specifications. This is
an example of:
A. bid pricing.
B. odd-even pricing.
C. psychological pricing.
D. leader pricing.
E. price lining.
Answer:
A retailer's promotion objective might be to ______________ its target market about its
marketing mix.
A. inform
B. persuade
C. remind
D. Any of these might be a promotion objective.
Answer:
The research proposal may include information about all of the following except
A. what the costs will be.
B. who will analyze the data.
C. what data will be collected.
D. how long the process will take.
E. what the possible solutions are.
Answer:
When a firm considers a triple bottom line as a measure of long-term success, this
means that it measures outcomes in which of the following three different areas:
A. economic success, social impact, and political change.
B. firm profitability, customer satisfaction, and behavioral change.
C. economic success, social impact, and environmental impact.
D. company effort, customer satisfaction, and relative market share.
E. customer satisfaction, environmental impact, and production efficiency.
Answer:
Which of the following is a status quo pricing objective?
A. Growth in sales
B. Maximize profits
C. Growth in market share
D. Satisfactory profits
E. Meeting competition
Answer:
Which of the following would be considered a retailing "category killer"?
A. PetSmart (pet supplies)
B. Best Buy (electronics)
C. Home Depot (home improvements)
D. IKEA (furniture)
E. all of these are "category killers."
Answer:
A seller's invoice reads: "Seller pays the cost of loading said merchandise onto a
common carrier. At the point of loading, title to such products passes to the buyer, who
assumes responsibility for damage in transit, except as covered by the transportation
agency." This shipment has been shipped:
A. F.O.B. delivered.
B. F.O.B. shipping point.
C. F.O.B. mill, freight absorbed.
D. F.O.B. buyer's factory.
E. F.O.B. seller's factory-freight prepaid.
Answer:
A producer of home burglar alarm devices decides to start manufacturing portable video
cameras for use in industrial security situations. This is an example of
A. market development.
B. diversification.
C. product development.
D. market penetration.
Answer:
Some consumers maintain a "price-quality association," meaning that if a product has a
high price, they assume the product must have high quality. This "price-quality
association" is the basis for the use of:
A. Odd-even pricing.
B. Prestige pricing.
C. Leader pricing.
D. Reference pricing.
E. Price lining.
Answer:
An economic system in which government officials determine production levels is
known as:
A. pure subsistence.
B. macro-marketing.
C. market-directed.
D. production-oriented.
E. command.
Answer:
Use this information for question that refer to the Sunny Day Foods (SDF) Case.
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 regulars view SDF cereals?
A. Staples
B. Impulse product
C. Heterogeneous product
D. Specialty product
Answer:
