Debbie Wood sells food products to grocery wholesalers and large supermarket chains
in Tallahassee. She sells for several manufacturers with noncompeting lines of food
products-earning a 5 percent sales commission. She neither handles nor owns the
products she sells. Debbie is a:
A. manufacturers’ agent.
B. rack jobber.
C. broker.
D. truck wholesaler.
E. selling agent.
Answer:
Which of the following is an example of a service merchant wholesaler?
A. Drop-shipper
B. Specialty wholesaler
C. Catalog wholesaler
D. Auction company
E. Personal shopper
Answer:
Target marketing, in contrast to mass marketing:
A. Assumes all customers have the same needs.
B. Assumes everyone is a potential customer.
C. Focuses only on small market segments.
D. Tailors a marketing mix to fit some specific group of customers.
E. Makes it more likely that a firm will face direct competition.
Answer:
A company has total fixed cost of $120,000. Its variable cost per unit is $2.00 and its
price per unit is $3.50. The break-even point in units is:
A. 60,000.
B. 80,000.
C. 34,286.
D. 21,818.
E. Cannot be determined from the information provided.
Answer:
Along with studying trends in the environment, a first step in looking for attractive
opportunities is to:
A. understand the resources and objectives of the firm.
B. decide which product-markets the firm will enter.
C. find new markets for present products.
D. estimate product-market potentials.
E. hire a marketing strategy planner.
Answer:
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.
Answer:
In the traditional communication model, the source can receive immediate feedback as
the result of _______________.
A. Sales promotion
B. Mass selling
C. Advertising
D. Personal selling
E. Publicity
Answer:
The advantages of working with an intermediary usually increase when there is
A. excellent communication with customers.
B. a greater number of customers.
C. little distance between customers.
D. a smaller number of competing products.
Answer:
Studying a consumer’s psychographic characteristics will help marketers understand the
target audience’s hobbies, politics, and _____________________________.
A. geographic area
B. age bracket
C. family size
D. income level
E. recreational interests
Answer:
Regarding retailing, which of the following statements is FALSE?
A. Supermarkets average about $20 million in sales per year.
B. Single-line mass-merchandisers have not been successful-probably because their
assortments are so limited.
C. Mass-merchandisers put less emphasis on knowledgeable salespeople than more
conventional retailers.
D. Discount houses got their start selling “hard goods” at lower prices.
E. None of these statements regarding retailing is FALSE.
Answer:
_______ refers to producers holding title to goods and services that they themselves do
not want to consume and consumers wanting goods and services that they do not have.
A. Discrepancies of assortment
B. Separation of ownership
C. Discrepancies of quantity
D. Spatial separation
E. Separation in time
Answer:
____ is the total stream of purchases that a customer could contribute to the company
over the life of the relationship.
A. Customer equity
B. Profit
C. Net worth
D. Customer lifetime value
E. A premium price
Answer:
Nebula Co., a pharmaceutical manufacturing company in the U.S., enters into a
contractual agreement with a firm in India to conduct clinical trials there after
discovering that it is more cost effective to conduct clinical trials in India than in the
U.S. In this example, Nebula Co. is:
A. outsourcing.
B. insourcing.
C. restructuring.
D. downsizing.
E. crowdsourcing.
Answer:
Cherokee Cable Corporation, sells heavy wire cable to large construction companies
around the country. Customers pay shipping from a central warehouse in Dallas.
Recently, a new competitor in Atlanta has been taking away some of Cherokee Cable’s
southern customers. If Cherokee Cable wants to compete in those distant markets, but
not increase the cost of its product to other customers, it would probably switch to
A. zone pricing.
B. specifying “F.O.B. Dallas” in its contracts.
C. uniform delivered pricing.
D. freight absorption pricing.
E. None of these would help Cherokee Cable Corporation with its problem.
Answer:
Storing:
A. must be provided by all channel members.
B. is necessary when production does not match consumption.
C. is related to Place-but not to Price.
D. makes goods available where they’re needed.
E. All of these alternatives are correct.
Answer:
Which of the following statements about ethnic dimensions of the U.S. market is True?
A. Ethnic groups buy differently and have different needs.
B. Many firms make the mistake of treating all consumers in an ethnic group as
homogeneous.
C. The number of ethnic consumers is growing at a faster rate than the overall society.
D. The buying power of ethnic submarkets is increasing rapidly.
E. All of these statements about ethnic dimensions are True.
Answer:
A market-directed economic system implies that:
A. society lacks both political and economic freedom.
B. people have political freedom but economic objectives are determined by the
government.
C. political freedom and economic freedom go hand in hand.
D. the needs of consumers are not part of marketing objectives.
E. very little importance is attached to customer satisfaction.
Answer:
Regarding wholesaling, which of the following is(are) true?
A. Merchant wholesalers have higher sales than agent wholesalers, but their costs (as a
percent of sales) are over three times as high.
B. There are many more manufacturers’ sales branches than merchant wholesalers.
C. Manufacturers’ sales branches have higher costs than agent wholesalers and account
for a smaller percentage of total sales.
D. Good marketing managers select the type of wholesaler with the lowest cost when
planning channels of distribution.
E. All of these alternatives about wholesaling are true.
Answer:
The AIDA model consists of
A. Awareness, Influence, Decoding, and Advertising.
B. Attention, Interest, Desire, and Action.
C. Appraisal, Insight, Discernment, and Action.
D. Advertise, Influence, Desire, and Attention.
E. Awareness, Information, Design, and Attention.
Answer:
When the manager of a local electronics store decides to offer its customers a
gift-wrapping service for the holidays, this is a decision about:
A. Product
B. Place
C. Promotion
D. Price
Answer:
In 2009, 100 percent of this country’s population was in urban areas.
A. United States
B. Singapore
C. United Kingdom
D. Germany
E. Italy
Answer:
In a _____ the whole channel focuses on the same target market at the end of the
channel.
A. vertical marketing system
B. horizontal marketing system
C. parallel marketing system
D. diagonal marketing system
E. linear marketing system
Answer:
Discrepancy of quantity is
A. the difference between the lines a typical producer makes and the assortment final
consumers or users want.
B. adjusting the quantities of products handled at each level in a channel of distribution.
C. collecting products from many small producers.
D. the difference between the quantities of products that it is economical for a producer
to make and the quantity final users or consumers normally want.
E. usually seen with producers who specialize by product.
Answer:
During the situation analysis, a marketing researcher will evaluate primary data rather
than secondary data.
Answer:
Viewing marketing as a social process focuses on
A. marketing by nonprofit organizations.
B. command economies.
C. macro-marketing.
D. micro-marketing.
E. none of these is correct.
Answer:
A sales rep is paid a commission on each product sold. The commission is:
A. part of the total fixed cost.
B. part of the total variable cost.
C. not included in figuring average cost.
D. part of the total cost, but not specifically a fixed cost or a variable cost.
E. None of these alternatives is correct.
Answer:
It is difficult to maintain consistent quality in services because
A. services are nonperishable.
B. as opposed to products, services are tangible in nature.
C. the service provider deals directly with the customer and often has to interpret each
customer’s needs.
D. variability is reduced as more humans are involved in delivery.
E. it requires minimum human interaction.
Answer:
Until recently, Triad Equipment, Inc. took trade-ins when it sold new equipment to
manufacturers. Now, Triad has a new owner who wants to sell the inventory of used
equipment quickly to the best available buyer. He should look for:
A. a manufacturers’ sales branch.
B. a broker.
C. a selling agent.
D. a manufacturers’ agent.
E. a sales finance company.
Answer:
Reference group influence is likely to have the strongest effect on the particular
BRAND of ______________ purchased.
A. dishwasher detergent
B. frozen peas
C. batteries
D. watch
E. Reference group influence would be about the same for each of these products.
Answer:
Attitudes are:
A. things we believe strongly enough to be willing to take some action.
B. more action-oriented than beliefs.
C. reasonably enduring points of view about something.
D. usually thought of as involving liking or disliking.
E. All of these alternatives are correct.
Answer:
Nike claims in its Annual Report, “the reasons every NIKE employee comes to work
every day is to create great product, to lead the athletic industry in innovation, and to
serve the athlete.” This is Nike’s:
A. competitive barrier.
B. technology.
C. portfolio management.
D. mission statement.
E. competitor analysis.
Answer: