With their size and buying power, ________ can offer better merchandise selections,
good service, and strong price savings to consumers.
A) convenience stores
B) franchises
C) megaretailers
D) power centers
E) lifestyle centers
________ is the process of comparing the company’s products and processes to those of
competitors or leading firms in other industries to find ways to improve quality and
performance.
A) Segmenting
B) Positioning
C) Sales promotion
D) Benchmarking
E) Publicity
________ involves designing and producing the container or wrapper for a product.
A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling
In a communication process, a receiver assigns meaning to the symbols encoded by a
company in its advertisements through a process known as ________.
A) integrating
B) reciprocating
C) acknowledging
D) decoding
E) coordinating
Why are customers often considered the most important sources of new-product ideas?
A) Customers are close to the market and can pass along information about problems
and new-product possibilities.
B) The company can analyze customer questions and complaints to find new products
that better solve consumer problems.
C) Customers buy competing new products, take them apart to see how they work,
analyze sales, and then decide to purchase.
D) Customers review the sales, costs, and profit projections for a new product to find
out whether the product satisfies the company’s objectives.
E) Customers estimate the minimum and maximum sales to assess the range of risk.
Which of the following industrial structures presents the fewest market opportunities?
A) subsistence economies
B) raw material exporting economies
C) industrializing economies
D) emerging economies
E) industrial economies
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a
shoe store, a small restaurant, and a grocery store. Over the next two decades, the small
town transformed into an international tourist attraction, attracting thousands of tourists
who were intrigued by the lifestyle of Shipshewana’s largest population-the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on
their town’s popularity and their woodworking skills. Their shop, Indiana Wood, began
with a small display of handmade hickory rocking chairs, Ben Miller’s specialty. But
within a few months, the display at Indiana Wood included picnic tables, flower boxes,
and small handmade novelty items. No other shop offers the same.
Mary Miller decorated the shop’s display room with authentic Amish d©cor and
eventually hired three Amish friends to sew and embroider napkins and other textiles as
per customer requests. In addition, two women from the Amish community sought
permission from the Millers to display home-baked pastries and jellies on Tuesdays and
Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the
south edge of town. The Millers also hired four more people to help customers
throughout the purchasing process and to provide the required product related
information to the customers.
“Shipshewana is full of specialty shops,” Mary Miller stated. “People don’t come here to
buy things made in China or Taiwan. They want real, Amish-made goods.”
The authentic Amish d©cor of Indiana Wood’s contributes to the store’s ________.
A) product assortment
B) services mix
C) atmosphere
D) segmentation
E) retail convergence
The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is
$12. If the company expects to manufacture 5,000 monitors, the total costs would be
________.
A) $60,000
B) $200,000
C) $260,000
D) $420,000
E) $500,000
Which of the following questions is most important for product designers to consider
while developing a product?
A) Which specific features of the product do customers like most?
B) How does the product appear to buyers?
C) What are the product’s technical specifications?
D) How would customers use and benefit from the product?
E) How can the product be packaged to stimulate instant purchase?
The following quote best describes ________. “The marvels of modern technology
include the development of a soda can which, when discarded, will last forever, and a
car, which when properly cared for, will rust out in two or three years.”
A) planned obsolescence
B) product failure
C) deceptive promotions
D) deceptive packaging
E) excessive markups
All of the following are disadvantages of team selling EXCEPT ________.
A) selling teams can be confusing and overwhelming for customers
B) salespeople who are used to having customers all to themselves may have trouble
learning to work with and trust others on a team
C) team selling reduces the overall efficiency of the selling process
D) individual contributions and compensations can be difficult to assess in team selling
E) team selling discourages individual contributors because the team receives credit for
good performance
The greater the number of channel levels in a marketing channel, the ________.
A) less distance between producer and end-consumer
B) greater the channel complexity
C) less time it takes for products to reach end-consumers
D) greater the control producers have over the distribution of their products
E) greater the control producers have over the demand of their products
If a company ________, it should adopt a product sales force structure, in which the
sales force specializes along product lines.
A) specializes in a single product
B) manufactures a small number of simple products
C) maintains that product specialization is counter productive
D) has numerous and complex products
E) lacks salespeople with superior technical know-how