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As output increases, average cost decreases continually because
A. average variable cost per unit is increasing.
B. average fixed cost per unit is decreasing.
C. total variable cost is increasing.
D. total variable cost is decreasing.
E. total fixed cost is reducing.
In Europe, auto manufacturers are required by law to allow owners of their brands to
give the cars back to the manufacturers at the end of their useful life. The manufacturers
must then recycle and reuse at least 85 percent of any vehicle made after 2004. This is
an example of a(n):
A. Integration law.
B. Horizontal law.
C. Contractual law.
D. Vertical law.
E. Take back law.
A S.W.O.T. analysis can help a marketing manager:
A. define what business and markets the firm wants to compete in.
B. narrow down to a specific target market and marketing mix from the many
alternatives available.
C. see the pros and cons of different possible strategies.
D. develop a competitive advantage.
E. all of these can help a marketing manager who is using a S.W.O.T. analysis.
The universal functions of marketing
A. are not all needed in market-directed economies.
B. are not all needed in command economies.
C. can be performed by producers, consumers, and a variety of marketing specialists.
D. are performed in the same way in all economic systems.
A broker's "Product" is:
A. financial skillsand perhaps credit.
B. market contacts for new products.
C. information about what buyers need and what supplies are available.
D. good storage and transportation facilities.
E. All of these are included in a broker's "Product."
Which of the following is NOT a major step in the learning process?
A. Dissonance
B. Drive
C. Response
D. Cues
E. Reinforcement
Discretionary income is defined as:
A. total market value of goods and services produced.
B. gross domestic product per capita.
C. income available after taxes.
D. income available before taxes.
E. income available after taxes and necessities.
A retailer's "Product" may include:
A. a particular assortment of goods and services.
B. special orders.
C. advice from salesclerks.
D. quality.
E. All of these are included in a retailer's "Product."
Most critics of marketing who argue that marketing managers help create monopoly or
monopolistic competition feel this leads to:
A. restriction of output.
B. higher prices.
C. reduction in the national income.
D. more unemployment.
E. All of these alternatives are correct.
According to the text, single-line stores are also known as
A. general stores.
B. limited-line stores.
C. specialty shops.
D. department stores.
E. boutique stores.
_____ is the intentional coordination of every communication from a firm to a target
customer to convey a consistent and complete message.
A. Integrated marketing communications
B. Online marketing
C. Branding
D. Digital marketing
E. Product positioning
Which of the following is the best example of a conventional retailer?
A. A limited-line store.
B. A department store.
C. A supermarket.
D. A convenience (food) store.
E. None of these is a good example of a conventional retailer.
A producer in Philadelphia uses "zone pricing." It's selling widgets for $150/ton in the
Eastern Zonewhich includes Richmond and Baltimore. The actual freight cost from its
plant to Baltimore is $70/ton and from its plant to Richmond is $80/ton. In this
situation:
A. one ton of widgets costs a Baltimore buyer the same as a Richmond buyer.
B. both buyers would pay $300 for one ton of widgets.
C. one ton of widgets delivered to Richmond would cost the buyer $230.
D. one ton of widgets delivered to Baltimore would cost the buyer $220.
E. None of these alternatives is correct.
The new-product development process
A. should have ongoing support from top management.
B. should avoid applying quantitative screening criteriasince applying such criteria
tends to eliminate most of the "really new" ideas.
C. should be informalto encourage creativity.
D. should start whenever the majority of current products are in the market maturity
stage of the product life cycle.
E. All of these alternatives are correct.
An ad for Toyota's lowest priced truck claimed that it "is tougher, gives better mileage,
and costs less than any other truck"and specifically named the directly competitive
trucks. This is:
A. institutional advertising.
B. comparative advertising.
C. cooperative advertising.
D. direct competitive advertising.
E. pioneering advertising.
A useful tool for organizing the competitor analysis is:
A. the table of competitive rivals.
B. rivals chart.
C. the oligopoly chart.
D. a competitor matrix.
E. the competitive summary.
Which of the following statements regarding the 'sales era" is true?
A. The emphasis was on producing.
B. A business problem was to decide where to put the company's effort.
C. More production capability was available than ever before.
D. It followed the marketing department era.
Which of the following is 'something of value" that might be offered to FINAL
CONSUMERS as part of the "price equation"?
A. Sufficient margin to allow for profit.
B. Push money.
C. Competitive advantage.
D. Branded merchandise.
E. None of these is a good answer.
An important step in applying the marketing concept is:
A. changing the firm's organizational structure.
B. changing the firm's management methods and procedures.
C. appointing someone with a marketing management background to be the firm's
president.
D. hiring a marketing consultant.
E. committing to customer satisfaction.
These salespeople try to develop goodwill and stimulate demand, help intermediaries
train their salespeople, and often take orders for delivery by intermediaries.
A. Order takers
B. Customer service reps
C. Missionary salespeople
D. Technical specialists
E. Account representatives
Chelsea is buying her first flat panel television. She wants to make the right decision, so
she consults several websites for product reviews, talks to friends and salespeople at
electronics stores, determines several key criteria, and evaluates six different sets. For
her flat panel purchase, Chelsea used
A. extensive problem solving.
B. focused information search.
C. routinized response behavior.
D. limited problem solving.
E. low involvement buying.
Regarding business supplies, which of the following is NOT true?
A. Maintenance items are to business buyers as convenience products are to final
consumers.
B. Supplies do not become part of a final product, but they are expense items.
C. Buyers of important operating supplies are likely to be particularly concerned about
dependability.
D. Operating supplies are frequently called "accessories."
E. A seller of repair supplies is likely to face fewer competitors than a seller of
operating supplies.
Which of the following statements about customer value is true?
A. Customer value is the difference between the benefits a customer sees from a market
offering and the costs of obtaining those benefits.
B. The greater the competition, the less important customer value is.
C. The sure way to achieve high customer value is to offer a lower price.
D. It is the manager's view of customer value that matters, not the customer's.
E. None of these statements is true.
A generic market
A. may include sellers who compete in different product-markets.
B. would probably be broader than the firm's target market.
C. might be composed of several different product-markets.
D. has sellers offering a more diverse set of products.
E. All of these are correct for a generic market.
When a firm produces a large quantity of a product, the cost of producing each
individual unit usually goes down. This is known as:
A. discrepancies of quantity.
B. exchange efficiency.
C. economies of scale.
D. macro-marketing.
E. discrepancies of assortment.
A digital camera, a computer video-cam, and a computer scanner might compete in the
same
A. single target market.
B. generic market.
C. multiple target market.
D. combined target market.
E. product-market.
Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby
and craft supplies. She bought the store after working there for 7 years. Carol has just
been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber
of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goodsmostly
men's and women's clothingwith the upscale Walden's brand name. Walden's primarily
relies on its own stores where knowledgeable salespeople offer great service. Walden
products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks
display racks for paperback books and magazines. Most retailers welcome the service
Audrey provides, in part because she does her own research to determine which
paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of
merchandise. The company used to concentrate its product mix on small appliancesbut
now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster
turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed
a contract with Games Unlimited and follows strict rules covering her store's operations
and the Games Unlimited marketing strategy. She pays that company a fee for
promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty
products to retailers and salons throughout the greater Centerville area. It owns the
goods it sells to these retailer customers, and it provides all the wholesaling functions
they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored
by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer
name are linked by contracts that include basic operating procedures, storefront designs,
and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding
in the Centerville area. It earns a commission from each manufacturer on the products it
sells for that manufacturer, but it does not take ownership of the equipment it sells nor
does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years
ago. After some success, the company moved into a nicer storefront, raised prices, and
now operates in the middle of the market.
Which of these businesses best fits the definition of a service merchant wholesaler?
A. Publisher's Helper
B. Valu Grocer
C. Reddy and Sons
D. Johnson's Health and Beauty Supplies
Marketing sales analysis:
A. keeps track of whether a firm's sales are increasing or decreasing.
B. requires a detailed breakdown of a company's sales records.
C. is very hard to dobecause computers must be involved.
D. looks for exceptions or variations from planned performance.
E. tries to avoid the 80/20 rule.
Regarding retailer size and sales volume in the U. S.:
A. Approximately 15% of retail stores account for 50% of all retail sales.
B. Approximately 15% of retail stores account for 75% of all retail sales.
C. Approximately 15% of retail stores account for 95% of all retail sales.
D. Approximately 20% of retail stores account for 80% of all retail sales.
E. Approximately 30% of retail stores account for 70% of all retail sales.
A situation analysis
A. usually involves formal talks with informed people.
B. can help define the problem.
C. should never involve a firm's customers.
D. is a step that can often be skipped.
E. provides a controlled test of an hypothesis.
White Sands Heavy Equipment Co. produces industrial equipment that it sells through
its national sales force. Its sales reps often must negotiate with customers to match the
low prices of foreign competitors. Apparently, the firm has
A. an "F.O.B.-Seller's Factory" price policy.
B. been violating the Robinson-Patman act.
C. a skimming price policy.
D. a status quo pricing objective.
E. a flexible-price policy.
Total industry profits reach their maximum during the __________ stage of the product
life cycle.
A. market maturity
B. sales decline
C. market development
D. market introduction
E. market growth
