In an advanced economy, marketing costs account for about ___ cents of every
consumer dollar.
A. 10
B. 20
C. 30
D. 40
E. 50
Answer:
The regrouping activity which involves grading or sorting products into the grades and
qualities desired by different target markets is called:
A. assorting.
B. sorting.
C. wholesaling.
D. accumulating.
E. allocation.
Answer:
A Hewlett-Packard “all-in-one” printer that serves as a computer printer, fax machine,
copier, and scanner would fall into which of the following business product classes?
A. Accessories.
B. Components.
C. Installations.
D. Raw materials.
E. Supplies.
Answer:
When Intuit, a tax and financial planning software company, created a website where its
QuickBooks customers could interact about problems facing their small businesses, this
was an example of a(n):
A. branded service.
B. blog.
C. online community.
D. case study.
E. webinar.
Answer:
The _____ spells out what kinds of marks including brand names can be protected and
the exact method of protecting them.
A. Magnuson-Moss Act
B. Federal Fair Packaging and Labeling Act
C. Lanham Act
D. Wagner Act
E. Licenses Act
Answer:
A product line is a set of individual products that are closely related in which of the
following ways?
A. They are sold to the same target market.
B. They are produced and/or operate in a similar manner.
C. They are priced at about the same level.
D. They are sold through the same type of outlets.
E. Any or all of these alternatives are correct.
Answer:
A “market” consists of:
A. customers who are willing to exchange something of value.
B. a group of potential customers with similar needs.
C. sellers offering various ways of satisfying customer needs.
D. all of these are correct.
Answer:
In the three-step approach to organizational buying, the second stepthe buying
processinvolves:
A. identifying the problem.
B. specifying the product.
C. describing the need.
D. soliciting proposals bids from suppliers.
E. monitoring supplier performance.
Answer:
Which of the following is NOT a franchise operation?
A. Subway (food)
B. H and R Block (tax work)
C. Kinko’s (copy center)
D. 7-Eleven (convenience store)
E. All of these are franchise operations
Answer:
Which dimension of buyer-seller relationships most significantly increases the risk that
proprietary knowledge or trade secrets may leak to competitors or the public?
A. Cooperation
B. Information sharing
C. Operational linkages
D. Legal bonds
E. Relationship-specific adaptations
Answer:
Sears advertises its “DieHard” auto batteries as “even better than your original battery.”
The ads tell possible customers to get a DieHard at their Sears auto center the next time
they need one. This is an example of
A. institutional advertising.
B. the indirect type of competitive advertising.
C. the direct type of competitive advertising.
D. comparative advertising.
E. reminder advertising.
Answer:
A retailer of men’s suits who is advertising a popular brand of dress shirts at a reduced
price to attract customers is using:
A. price lining.
B. leader pricing.
C. odd-even pricing.
D. bait pricing.
E. prestige pricing.
Answer:
Which of the following countries’ governments passed a soda tax to restrict the
production and sale of sugary soft drinks?
A. Germany
B. Australia
C. France
D. India
Answer:
Advertising which tries to develop primary demand for a product category rather than a
specific brand is called ______________ advertising.
A. comparative
B. institutional
C. competitive
D. pioneering
E. persuading
Answer:
FlyFar Airlines uses marketing research to determine customer needs and assess how
well the company meets them. This suggests that FlyFar managers exhibit ________.
A. a marketing orientation
B. social responsibility
C. separation of information
D. the innovation concept
E. a production orientation
Answer:
____ refers to a firm’s obligation to improve its positive effects on society and reduce
its negative effects.
A. The nonprofit orientation
B. The micro-macro dilemma
C. Marketing ethics
D. Legal obligations
E. Social responsibility
Answer:
Discretionary income is the portion of a person’s income that pays for:
A. rent.
B. food.
C. luxuries.
D. taxes.
E. insurance.
Answer:
Reminder advertising
A. tries to develop primary demand for a product category rather than demand for a
specific brand.
B. tries to keep the product’s name before the public.
C. means making specific brand comparisons using actual product names.
D. tries to develop selective demand for a specific brand.
E. informs potential customers about the new product and helps turn them into adopters.
Answer:
Use this information to answer the following question that refer to the PSI case.
Pump Systems, Inc. (PSI) produces two major kinds of water pumps. The smaller
pumps range in price from $5-$30, and are used in drinking fountains and soft-drink
machines. Most of these pumps are bought by manufacturers of these machines and
built into their product. PSI also builds larger pumps used in swimming pools and
reservoirs. The prices of these items range from $250-$500. These are usually
purchased by contractors, who build the pools and reservoirs.
PSI sells nationally through sales reps located in the large industrial centers. These reps
handle the selling function for PSI in their geographic areas and provide market
information. They usually do the same thing for 10 to 20 similar manufacturers of
noncompeting products-and are paid on a commission basis.
There are no other producers of the smaller pumps in the United States-because PSI has
patent protection. As a result of this, management has decided to follow a policy of
pricing high-to maximize profits-while the patent lasts.
Several competitors are in the market for the larger pumps. Industry prices and profits
of these pumps have dropped in the past few years as a result of firms trying to increase
their market shares. The product design has remained fairly stable over the last few
years-and one firm dropped out as it saw that it would lose more money with its
“me-too” product. Industry sales are increasing-but at a very slow rate. The price of
these products is determined by adding a standard markup percentage to the variable
cost of the items-to cover fixed costs and profit. For instance, pump Z has variable costs
of $250 per unit, and a markup of 40 percent of this cost is added to the $250 to get its
selling price. Management has estimated that fixed costs applicable to this product are
$200,000 per year.
PSI publishes a product catalog which is revised annually. Also, it exhibits in most trade
shows. PSI follows a policy of charging the same price to all customers-so all will have
the same costs at their own plants. All purchases are shipped directly from PSI’s factory
to its customers-and title passes at PSI’s factory.
What stage in the product life cycle do PSI’s large pumps seem to be in?
A. Market maturity
B. Sales decline
C. Market introduction
D. Market growth
Answer:
Put the steps of the personal selling process in order: Prospect for new customers;
Select target customer; Preplan sales call and presentation; Make sales presentation;
______________; and Follow up after the sales call.
A. Create interest
B. Open sale
C. Overcome objections
D. Close sale
E. Contact buyer
Answer:
When a firm is searching for attractive opportunities, a good manager should keep in
mind that ___________ strength is very important.
A. financial
B. production and flexibility
C. marketing
D. pricing
E. all of these strengths are important
Answer:
A sales representative for Xerox always begins her sales presentation by conducting an
interview with the potential customer. She asks several multiple-choice questions that
are designed to pinpoint the needs of the customer for various features of a new copying
machine. At the end of the interview, the salesperson takes a moment to summarize the
results in a profile of the customer and his/her needs. She then matches the needs to a
specific model in the Xerox line of copiers, and shows how the Xerox model compares
to other competing models. This sales representative is engaged in:
A. A consultative selling approach.
B. A prepared sales presentation.
C. A selling formula approach.
D. A telemarketing approach.
E. A prospecting approach.
Answer:
Which of the following countries have the HIGHEST GNI PER CAPITA?
A. Saudi Arabia and Iran
B. Mexico and Spain
C. United States and Switzerland
D. India and China
E. Japan and Germany
Answer:
Regarding alternative transporting modes:
A. trucks are good for speed, frequency, dependability, and number of locations served.
B. pipelines are slower and less dependable than water transport, but also less expensive
and able to serve more locations.
C. airways are faster, cheaper, and more dependable than railways.
D. waterways are slow, costly, and unable to handle a variety of shipments.
Answer:
Which of the following is not an example of price?
A. college tuition
B. doctor’s fee
C. apartment rent
D. interest on a loan
E. All of these are examples of price.
Answer:
Early adopters, compared to innovators:
A. Adopt a new idea earlier.
B. Tend to have greater contact with salespeople.
C. Rely more heavily on scientific or impersonal information sources.
D. Are more willing to take risks.
E. Are infrequently opinion leaders.
Answer:
Regarding discount houses, which of the following statements is TRUE?
A. The early discount houses emphasized hard goods.
B. While some conventional retailers cut price on competitive items, discount houses
regularly sell all of their products at smaller markups.
C. As early discounters were able to offer full assortments, they also sought
“respectability” and moved to better locations.
D. Discount houses are fast-turnover, price-cutting operations.
E. All of these statements about discount houses are TRUE.
Answer:
Which of the following is NOT a key dimension of buyer-seller relationships in
business markets?
A. legal bonds
B. new-task sharing
C. cooperation
D. operational linkages
E. information sharing
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’s main sales task is supporting?
A. Wilson Alvaro
B. Melissa Tran
C. Emily Winters
D. Ben Peterson
Answer:
Seeking to stop declining sales for an established mouthwash, a sales manager suggests
that new coloring be added to the product and a major promotion effort be started for
the “new” product. The Federal Trade Commission would:
A. be concerned about the possibility of the firm getting a monopoly.
B. allow the company to call the product “new” for only six months.
C. probably not approve of this at all because the product doesn’t meet the FTC’s
definition of “new.”
D. allow the promotion effort if it felt that consumers would think the coloring made it
“new.”
E. none of these alternatives is correct.
Answer:
A food processor considering snack-food opportunities identified three possible market
segments and gave them “nicknames”: the dieters, health faddists, and
nutrition-conscious parents. It developed a marketing mix around a line of good tasting,
nutritious children’s snacks. The firm is apparently
A. relying on cluster analysis techniques.
B. using a multiple target market approach.
C. using a single target market approach.
D. using a combined target market approach.
E. ignoring the criteria that good market segments should be operational.
Answer: