The research proposal may include information about all of the following except
A. what the costs will be.
B. who will analyze the data.
C. what data will be collected.
D. how long the process will take.
E. what the possible solutions are.
“Demand-backward” pricing:
A. starts with an acceptable final consumer price and works backward to what
producers can charge.
B. ignores demand estimates.
C. is only sensible when the channel captain is a large retailer.
D. is an average-cost pricing approach.
E. None of these alternatives is correct.
The marketing management team for Dada Motors brainstormed a variety of solutions
to the problem of how to transport people in the world. This process came during the
____ step in the market segmentation process.
A. disaggregating
B. market definition
C. segmenting
D. aggregating
E. approach selection
In the ____ stage of the adoption process, the consumer may buy the product to
experiment with it in use.
A. interest
B. awareness
C. evaluation
D. trial
E. decision
The text’s consumer product classes are based on:
A. each product’s price level.
B. the way consumers think about and shop for products.
C. the channel(s) of distribution used for each product.
D. the nature of the product and how it will be used.
E. how the product is produced.
Producers often have to use “multichannel distribution”:
A. because they want to sell both direct with a website and indirectly through
intermediaries.
B. because big retail chains want to deal directly with producers.
C. because competitors use a variety of channels.
D. because present channel members are doing a poor job.
E. All of these are valid reasons for producers to use multichannel distribution.
Regarding component parts,
A. the original equipment market and the aftermarket for component parts are typically
separate target markets.
B. a product originally sold as a component part may become a consumer product when
sold in the “aftermarket.”
C. component buyers want dependable suppliers.
D. they are finished items that must meet specifications.
E. All of these alternatives are correct.
During the sales decline stage
A. the total amount spent on promotion usually decreases as firms try to cut costs to
remain profitable.
B. firms do not need targeted promotion to reach customers.
C. personal selling will probably dominate the promotion blends of consumer products
firms.
D. promotion emphasis shifts from stimulating selective demand to building primary
demand.
E. sales promotion is primarily targeted at intermediaries to get them interested in
selling the product.
Which of the following is NOT one of the four variables in a marketing mix?
A. Price
B. Product
C. Promotion
D. Payment
E. Place
A firm with a marketing orientation is MOST likely to:
A. view advertising as an unnecessary expense.
B. recognize that effective advertising is the key to sales.
C. advertise how a product meets customers’ needs.
D. focus advertising on product features.
E. not use any advertising.
A joint venture is:
A. a firm that provides only management skills, while others own the production and
distribution facilities.
B. a firm selling the right to use some process, trademark, or other right for a fee.
C. a separate firm owned by a parent company.
D. a domestic firm entering into a partnership with a foreign firm.
E. a firm getting rid of surplus inventory.
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
Concept testing:
A. takes place during the screening step of the new-product development process.
B. involves usage tests by potential customers.
C. seeks potential customers’ reactions and attitudes toward new product ideasbefore
actual models are developed.
D. is the last step before commercialization of a new product idea.
E. None of these alternatives is correct.
BMW places a TV ad for its new 7-series sedan in the highly-rated Academy Awards
program. In the traditional communication model, BMW is the:
A. Source.
B. Decoder.
C. Receiver.
D. Message channel.
Characteristics of a good brand name include all of the following except:
A. Be easy to spell and pronounce.
B. Be trendy and fashionable.
C. Describe the product and key benefits.
D. Be legally available for use by the firm.
E. Match the brand’s packaging.
Which of the following would a firm need to specify BEFORE deciding on its sales
promotion objectives?
A. Company objectives.
B. Production objectives.
C. Product objectives.
D. Marketing objectives.
E. All of these objectives would need to be specified beforehand.
Which of the following laws is primarily concerned with product warranties?
A. The Sherman Act
B. The Robinson-Patman Act
C. The Federal Trade Commission Act
D. The Magnuson-Moss Act
E. There are no laws regulating product warranties.
An economic system in which government planners determine production levels is
known as
A. a command economic system.
B. a micro-marketing economic system.
C. a macro-marketing economic system.
D. a market-directed economic system.
E. a pure subsistence economic system.
In marginal analysis, the most profitable price is the price at which:
A. Profit is based on competitive pricing.
B. Total revenue and total cost are equal.
C. The difference between total revenue and total cost is greatest.
D. Total profit and total cost are equal.
E. None of these is a good answer.
Consumers’ attitudes can be learned from:
A. exposure to the attitudes of others.
B. promotion which is directed toward them.
C. previous experiences.
D. family and friends.
E. All of these could be true.
MetroTech Corporation has been experiencing declining profits. The accounting
department blames the MetroTech marketing staff for “out of control” sales costs. The
salespeople blame the warehouse for being slow to fill orders. And the warehouse
manager says that the production department can’t meet its schedule. MetroTech seems
to have
A. implemented the marketing concept.
B. a customer orientation.
C. a marketing orientation.
D. a sales orientation.
E. a production orientation.
A retailer pays a wholesaler $24.00 for an item and then sells it with a 25 percent
markup. The retailer’s selling price is:
A. $32.00.
B. $56.00.
C. $48.00.
D. $30.00.
E. None of these alternatives is correct.
Storing:
A. must be provided by all channel members.
B. is necessary when production does not match consumption.
C. is related to Placebut not to Price.
D. makes goods available where they’re needed.
E. All of these alternatives are correct.
Statistical packages are easy-to-use computer programs that analyze data.
If geographic location and other demographic characteristics are used as target market
dimensions, which potential strategy decision area is mostly likely to be affected?
A. Promotion – what potential customers need.
B. Target markets – size.
C. Price – what customers might be willing to pay.
D. Product line assortment.
E. Product – which features to include.
“Promotion” includes:
A. advertising.
B. personal selling.
C. sales promotion.
D. publicity.
E. All of these may be included in Promotion.
Raw materials
A. are treated as expense items.
B. are unprocessed but eventually become part of a final physical good.
C. include both farm products and natural products.
D. move to the next production process with little handling.
E. All of these alternatives are correct.
Which of the following statements is True regarding the last step in the marketing
research processsolving the problem?
A. In this step, managers use the research results to make decisions.
B. Research needs to have action implications to have value.
C. Managers should be able to apply the research findings to marketing strategy
planning.
D. Research that does not provide information that is useful for decision-making is a
waste of time and money.
E. All of these statements are True.
As the owner of a women’s clothing store, Caroline Lipscomb has an income of
$75,000. She pays $30,000 per year in taxes and another $17,000 per year in grocery
bills, house mortgage, and car payment. Last year she went to Italy and spent an
additional $4,000. What was Caroline’s discretionary income last year?
A. $45,000.
B. $75,000.
C. $26,000.
D. $28,000.
E. $24,000.
If one were using the “full-cost” approach to marketing cost analysis, then allocating
fixed costs on the basis of sales volume would:
A. make some customers appear more profitable than they actually are.
B. not be donebecause only variable costs would be analyzed.
C. make some products appear less profitable than they actually are.
D. decrease the profitability of the whole business.
E. Both make some customers appear more profitable than they actually are and make
some products appear less profitable than they actually are are true statements.
“Social class” in the U.S. is usually measured in terms of:
A. race, religion, and occupation.
B. occupation, education, and type and location of housing.
C. income.
D. income, occupation, and education.
E. income, occupation, and religion.
The AIDA model:
A. focuses on what happens after the adoption process is complete.
B. shows that the promotion effort is done once desire is aroused.
C. consists of four basic promotion jobs.
D. suggests that mass media can get consumers’ attention only if that is what consumers
desire.
E. All of these alternatives about the AIDA model are true.
Debbie Wood sells food products to grocery wholesalers and large supermarket chains
in Tallahassee. She sells for several manufacturers with noncompeting lines of food
productsearning 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.
From a producer’s viewpoint, which of the following is an advantage of intensive
distribution over selective distribution?
A. Intermediaries’ price-cutting may be reduced.
B. Intermediaries’ facilities will be more convenient for customers.
C. Intermediaries can be required to carry larger stocks.
D. More aggressive selling can be expected from intermediaries.
E. Better service can be required from intermediaries.
Warehouses that producers set up at separate locations away from their factories are
known as
A. progressive wholesalers.
B. manufacturers’ sales branches.
C. corporate chains.
D. hypermarkets.
E. retail production centers.