Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Customer service reps are more useful for "keeping" customers, rather than "winning"
new customers.
Answer:
A salesperson who aggressively seeks out possible buyers with a well-organized sales
presentation designed to sell a product is a missionary sales rep.
Answer:
To protect themselves from unpredictable events, most purchasing managers seek
several dependable sources of supply.
Answer:
Areas with small populations may still be attractive target markets for some
firms-because there may be less competition.
Answer:
In Japan, products are often bought and sold by a series of merchant wholesalers on
their way to the business user or retailer.
Answer:
Intensive distribution is selling a product through all responsible and suitable
wholesalers or retailers who will stock or sell the product.
Answer:
Homogeneous shopping products need order getters more than heterogeneous shopping
products.
Answer:
Direct-to-customer channels are rarely used in business markets because they are much
more expensive and less efficient than using intermediaries.
Answer:
Strategic planning is the managerial process of developing and maintaining a match
between an organization's resources and its market opportunities.
Answer:
The Federal Fair Packaging and Labeling Act of 1966 requires that firms in a
product-market reduce the number of package sizes to three or fewer for any product.
Answer:
A skimming policy does not involve price reduction over time.
Answer:
Countries where gross national income (GNI) per capita is low do not offer any
opportunities for marketers.
Answer:
Straight-rebuy buying takes longer than modified-rebuy or new-task buying and offers
more chance for promotion impact by the seller.
Answer:
Brand equity is the value of the brand's overall strength in the market.
Answer:
Wants are needs that are learned during a person's life.
Answer:
Enhancing customer value by increasing their purchases is a potential source of new
revenue.
Answer:
The cultural and social environment refers to where people live and their income.
Answer:
During the market introduction stage of the product life cycle, the basic promotion
objective is informing.
Answer:
With bid pricing, it is best for the bidder to use the same overhead and profit rates on all
jobs since that will make it easy to estimate costs and eventually will increase profits.
Answer:
Marketing research focuses on changing information needs while an MIS focuses on
recurring information needs.
Answer:
Customer service guarantees are becoming less common because service companies
can't live up to their promises.
Answer:
Sales promotion refers to those promotion activities-other than advertising, publicity,
and personal selling-that stimulate interest, trial, or purchase by final customers or
others in the channel.
Answer:
Because consumers are becoming less and less price-sensitive, the use of sales
promotion is increasing.
Answer:
Consumer products that offer truly new ideas that potential customers don't know about
yet are new unsought products.
Answer:
Defining the problem is the first step in the marketing research process-and is usually
the easiest job for the researcher.
Answer:
A company has moved into the "marketing company era" when, in addition to short-run
marketing planning, the total company effort is guided by the marketing concept.
Answer:
Advertisers often decline to work with agencies who handle competing accounts.
Answer:
Specialized search engines can help a business buyer search for products by description.
Answer:
Advertising can increase demand for the product resulting in economies of scale in
manufacturing, distribution, and sales.
Answer:
Macro-marketing emphasizes how the whole system works, rather than the activities of
individual organizations.
Answer:
The "Product" area is concerned with what goods and services are produced, but not
with decisions about installation, instructions on use, packaging, a brand name, a
warranty, or after-sale service.
Answer:
It is usually too expensive for personal selling to do the whole promotion job for
business products, so mass selling is useful too.
Answer:
In business markets, a seller would always prefer to have a closer relationship with a
customer.
Answer:
Macro-marketing is concerned with examining the relationship of the entire production
and distribution system.
Answer:
Comparative advertising has been banned by the Federal Trade Commission because it
was so effective in winning sales from competing products named in ads.
Answer:
"Branding" includes the use of trademarks and brand names to identify a product.
Answer:
In the U.S., many factories are concentrated in rural areas.
Answer:
When setting prices, the marketing manager should consider the firm's demand curve,
or else the price may not even cover the firm's total cost.
Answer:
Each of the following is likely to be experienced by a supplier using a JIT system
EXCEPT:
A. facilities near its customers.
B. infrequent truck deliveries.
C. small truck deliveries.
D. e-commerce order systems.
E. short order lead times.
Answer:
When the manager of a RadioShack electronics store decides to offer a store credit card
(RadioShack VISA), this is a decision about:
A. Product
B. Place
C. Promotion
D. Price
Answer:
The first step in segmenting international markets is to:
A. develop a marketing mix.
B. treat all the countries in the "foreign market" as one segment.
C. segment by country or region-looking at demographic, cultural, and other
characteristics.
D. list the suppliers who serve the market.
E. consider the number, size, kind, and location of business and organizational
customers.
Answer:
Product managers:
A. Are especially common in large companies.
B. Are sometimes responsible for a product's whole marketing effort.
C. Coordinate their efforts with individuals within and outside the company.
D. May serve as "product champions" in planning and implementing the promotion
effort.
E. All of these alternatives are correct.
Answer:
The sales and profits of an individual brand may or may not follow the life cycle pattern
of the product idea.
Answer:
Which of the following statements by a marketing manager refers to operational
decisions, rather than strategy decisions?
A. "Our target customers view most existing luxury sedans as dull, and they want
performance as well as luxury."
B. "Newspaper ads will be more cost effective than 30 second radio ads-given the price
increase for radio this month."
C. "We hope to earn a 15 percent return on investment with our plan."
D. All of these statements refer to operational decisions.
Answer:
To help producers manage discrepancies between what gets produced and what
customers need, channel specialists perform _____ activities, such as accumulating,
bulk-breaking, sorting, and assorting.
A. channel
B. regrouping
C. direct marketing
D. promotion
E. selective distribution
Answer:
Which of the following is a DEMOGRAPHIC segmenting dimension?
A. Rate of use
B. Brand familiarity
C. Type of problem solving
D. Benefits sought
E. Family life cycle
Answer:
______________ sell hardware, jewelry, and sporting goods out of a catalog to small
industrial or retail customers that other wholesalers may not call on.
A. Specialty wholesalers
B. Cash-and-carry wholesalers
C. Selling agents
D. Catalog wholesalers
E. Truck wholesalers
Answer:
Today, when a buyer can't specify all of the details of what it will need in the future, the
relationship with a supplier is most likely to involve:
A. an auction.
B. a procurement hub.
C. negotiated contracts.
D. competitive bids.
E. all of these are likely to be involved.
Answer:
Regarding PROMOTION BUDGETS and PROMOTION BLENDS:
A. A national TV ad might cost less per person reached than a local TV ad.
B. The total cost of mass media may force small firms to use promotion alternatives that
are more expensive per person.
C. A city-wide newspaper ad might cost less per person reached than a neighborhood
newspaper ad.
D. There are some economies of scale in promotion.
E. All of these are good answers.
Answer:
When evaluating the potential of possible opportunities (product-market strategies), a
marketing manager should:
A. evaluate each opportunity over the life of the project, since short-term losses may
hide long-term profitability.
B. avoid using quantitative criteria because they tend to oversimplify the problem.
C. look at each opportunity on its own, since there is no good way to compare different
plans.
D. look only at internal resources, since they are controllable.
Answer:
All of the following products are in the market maturity stage of the product life cycle
except:
A. laundry detergents.
B. breakfast cereals.
C. e-readers.
D. carbonated soft drinks.
E. gasoline-powered cars.
Answer:
Combiners (as opposed to segmenters):
A. try to satisfy target customers "very well" rather than "pretty well."
B. try to develop a different marketing mix for each submarket.
C. want to avoid "inviting" competition.
D. are not target marketers-they aim at everybody.
E. try to increase the size of their target markets by combining two or more market
segments.
Answer:
Which of the following statements about the learning process is TRUE?
A. A cue is a strong stimulus which drives an individual.
B. Learning occurs only when a drive is satisfied.
C. Cues are the causes of drives.
D. Reinforcement strengthens the relationship between a cue and a response.
E. All of these statements about the learning process are TRUE.
Answer:
Limited-function wholesalers:
A. usually cost more than single-line wholesalers.
B. include manufacturers' agents.
C. own (take title to) the products they sell.
D. usually cost more than specialty wholesalers.
E. All of these alternatives are correct for limited-function wholesalers.
Answer:
Which of the following statements about the competitive environment is FALSE?
A. Competition-free environments are rare.
B. Marketing managers should choose strategies that avoid head-on competition.
C. A firm that has a marketing mix that its target market sees as better than its
competitors' has a competitive advantage.
D. Over the long run, most product-markets tend toward monopolistic competition.
E. In a competitor analysis, the firm's first step should be to identify all potential
competitors.
Answer:
Empty nesters
A. are usually in the 30-44 age group.
B. are not an attractive market for any items.
C. spend a larger percent of their income on housing, child care, and other necessities.
D. are people whose children are grown and who are now able to spend their money in
other ways.
E. disrupt the family life-cycle pattern.
Answer:
Qualifying dimensions
A. need to be very specific.
B. help identify the "core benefits."
C. work in isolation in marketing strategy planning.
D. affect the customer's purchase of a particular product.
E. affect the customer's brand choice.
Answer:
Price discrimination:
A. by firms selling to final consumers is illegal, but it is usually legal in selling to
intermediaries.
B. is not covered by Federal laws, but in some states it is illegal.
C. is always illegal.
D. may be legal if the firm can prove that different prices were set based on different
costs.
E. None of these alternatives is correct.
Answer:
The Sherman Act and the Clayton Act:
A. were intended to protect small producers.
B. were aimed at efforts to restrain trade or lessen competition.
C. were passed before the Depression of the 1930s.
D. All of these are correct.
Answer:
Customer lifetime value
A. emphasizes a short-run approach to marketing management.
B. is basically a historical measure of how profitable a firm has been in the past.
C. applies to firms that target final consumers but not to firms that target business
customers.
D. will increase if a firm increases its market share with a particular strategy.
E. considers what a customer purchases from a company over the lifetime of the
relationship.
Answer:
In which of the following situations is the new product entering the market introduction
stage of the product life cycle?
A. Porsche just introduced a new luxury sport-ute to compete against sport-utes made
by others.
B. Colgate-Palmolive just introduced a "new and improved" chemical formula for its
"Total" toothpaste.
C. Home Depot (a home improvement chain) just introduced its own dealer brand of
paint.
D. Apple just introduced a computer operating system that is so "user-friendly" it
responds to spoken commands.
E. All of these situations show a new product entering the market introduction stage of
the product life cycle.
Answer:
A trademark
A. has no legal meaning.
B. includes those words, symbols, or marks that are legally registered for use by a
single company.
C. is any word, letter, or a group of words or letters.
D. is the value of a brand to its current owner or to a firm that wants to buy it.
E. is protected by the Magnuson-Moss Act.
Answer:
Which of the following is a disadvantage of quantitative research (compared to
qualitative research)?
A. It is harder to get in-depth answers.
B. The conclusions are likely to vary more from analyst to analyst.
C. The results are harder to summarize.
D. It is not as fast for respondents.
E. None of these is a disadvantage of quantitative research.
Answer:
While shopping in a local supermarket, Jolene Partin came upon an aisle display of
cookies and had to have some-immediately. By the time she got to the checkout counter
with the rest of her selections, all the cookies were gone. In this case, the cookies were:
A. an impulse product.
B. a staple product.
C. an unsought product.
D. very nutritious.
E. a consumption product.
Answer:
The production cost of an automobile component is $45. The producer takes a 10
percent markup and sells the product to the wholesaler. What is the wholesaler's cost?
A. $45
B. $5
C. $10
D. $50
E. $60
Answer:
A markup chain:
A. only applies to consumer products, not to business products.
B. implies that a retailer must always apply a smaller markup than a wholesaler.
C. causes lower prices in longer channel systems.
D. determines the price structure in a channel of distribution.
E. None of these alternatives is correct.
Answer:
All of the following are examples of dealer brands EXCEPT:
A. Craftsman Tools
B. Up and Up
C. Sam's Choice
D. McDonald's
E. Kenmore
Answer:
In this step of the adoption process, the adopter continues to rethink the decision and
searches for support for the decision.
A. Interest
B. Evaluation
C. Trial
D. Confirmation
E. Awareness
Answer:
Merchant wholesalers
A. own the products they sell.
B. often specialize by certain types of products or customers.
C. take title to the products they are selling for some period before selling to customers.
D. constitute almost 85 percent of the wholesaling establishments in the United States.
E. all of these alternatives are correct for merchant wholesalers.
Answer:
__________ is one of the most criticized of all marketing activities.
A. Packaging
B. Advertising
C. Placement
D. Pricing
E. Production
Answer:
