Which of the following is NOT a component material?
A. Paper.
B. Copper wire.
C. Copper ore.
D. Copper screens.
E. None of these, i.e., all are component materials.
Answer:
Compared to U.S. averages, the median age of Hispanic Americans is:
A. slightly higher.
B. much higher.
C. much lower.
D. about the same.
Answer:
Compared to a public warehouse, a private warehouse
A. requires no fixed investment.
B. has lower unit costs.
C. has less flexibility.
D. works better when large volumes of goods must be stored irregularly.
E. tends to have less managerial control.
Answer:
The “communication process” shows that:
A. sources and receivers need a common frame of reference to communicate
effectively.
B. the receiver is usually not influenced by the nature of the message channel.
C. sources decode messages and receivers encode them.
D. all media appear to be equally effective as message channels.
E. None of these alternatives is correct.
Answer:
Regarding our MACRO-marketing system, advertising:
A. creates jobs and raises personal incomes.
B. may lower final consumer prices if it results in economies of scale.
C. encourages innovation.
D. stimulates investment and generates economic growth.
E. All of these alternatives are correct.
Answer:
In promotion to business customers, personal selling is often the dominant promotion
method because:
A. there are fewer business customers than final consumers.
B. the sales message may need to be adjusted to the needs of different people in the
firm.
C. purchases are typically large and thus justify the effort.
D. buyers are more likely to have technical questions.
E. all of these are good reasons.
Answer:
The _____ says that new types of retailers enter the market as low-status, low-margin,
low-price operators and then, if successful, evolve into more conventional retailers
offering more services with higher operating costs and higher prices.
A. production concept
B. wheel of retailing theory
C. mass-merchandising concept
D. sales concept
E. break-even analysis
Answer:
Which of the following may be the only sensible pricing policy in oligopoly situations?
A. Maximizing profits
B. Pricing way below market
C. Meeting competition
D. Pricing way above market
E. Price leadership
Answer:
Regarding price-level policies:
A. meeting competition is the only sensible policy in monopolistic competition.
B. in an oligopoly situation, pricing “above the market” usually leads to an increase in
profit.
C. a firm in pure competition may increase profit by pricing “below the market.”
D. charging a lower price than seeming competitors may not mean that a firm is selling
“below the market.”
E. None of these alternatives is correct.
Answer:
Rico Paving Contractors enters into a contract with Valley Supply for the purchase of
100 bags of cement per week for the next 16 weeks at a price of $15 per bag. The
contract also includes a condition that allows prices to be revised if costs go up more
than $1 per bag. This purchase involves
A. an indefinite delivery contract.
B. negotiated contract buying.
C. a good faith purchase.
D. cost reimbursement contracting.
E. price allocation purchasing.
Answer:
A _____ policy means offering the same price to all customers who purchase products
under essentially the same conditions and in the same quantities.
A. one-price
B. flexible price
C. skimming price
D. differentiated
E. penetration price
Answer:
The court decisions in the Borden case clearly show that:
A. products of “like grade and quality” must be offered to all buyers at the same
price-even if sold under different labels.
B. manufacturers who supply retailers with dealer brands cannot force the retailer to
charge consumers the manufacturer’s suggested list price.
C. price fixing is always illegal.
D. a manufacturer can charge different prices for different brands of physically identical
products as long as the price differentials do not exceed the recognized consumer
appeal of the higher-priced brands.
E. manufacturers cannot charge different prices for dealer brands and manufacturer
brands.
Answer:
When major airlines target business travelers because they travel often and typically
pay at least three times the price for a ticket as leisure travelers, these airlines are
segmenting the market primarily on:
A. income.
B. education.
C. rate of use.
D. ethnicity.
E. age.
Answer:
Lipton has increased sales by developing ads that encourage its current customers to
drink Lipton tea instead of coffee at morning “coffee breaks.” This effort focuses on
A. diversification.
B. market penetration.
C. product development.
D. mass marketing.
E. market development.
Answer:
Which of the following is LEAST likely to be sold by a supercenter?
A. Trash compactor
B. Photo finishing
C. Lawn care materials
D. Aspirin
E. Milk
Answer:
When Amazon.com collects products from many small producers, the company is
involved in _____.
A. assorting
B. accumulating
C. bulk-breaking
D. quantitizing
E. sorting
Answer:
An economic buyer is a person who
A. logically compares choices to get the greatest satisfaction from spending time and
money.
B. makes buying decisions based only on price.
C. will not pay extra for convenience.
D. always buys products at the lowest price possible.
E. is averse to spending time and money.
Answer:
The phrase “big data” refers to:
A. the top five firms in the marketing research industry.
B. the massive amount of data being collected and processed by today’s organizations.
C. the use of market research in big marketing decisions.
D. marketing research data taken from Internet sources.
E. market information taken from the U.S. Census.
Answer:
A _____ is a market with very similar needs and sellers offering various close substitute
ways of satisfying those needs.
A. generic market
B. standard market
C. target market
D. global market
E. product-market
Answer:
Prices are called “administered” when:
A. they are determined through negotiations between buyers and sellers.
B. they fall below the ‘suggested list price.”
C. a marketing manager has to change the strategy every time a customer asks about the
price.
D. government intervenes to ensure that prices fluctuate freely in response to market
forces.
E. firms set their own prices for some period of time-rather than letting daily market
forces determine their prices.
Answer:
Traditional channels of distribution
A. do not perform bulk-breaking activities.
B. are usually preferred to other distribution arrangements.
C. are easier to control than corporate channel systems.
D. may involve little or no cooperation among channel members.
E. are usually controlled through strong legal contracts.
Answer:
“Product” is NOT concerned with:
A. quality level.
B. branding.
C. wholesale price.
D. packaging.
E. warranty.
Answer:
“Discrepancies of assortment” means:
A. some producers can produce more products than others.
B. some consumers buy more products than others.
C. consumers want more output than producers can make.
D. there are more producers than wholesalers.
E. the difference between the product lines the typical producer makes and the
assortment wanted by final consumers or users.
Answer:
A supply chain:
A. is part of a broader network of relationships called a channel of distribution.
B. is most effective when the objectives of the manufacturer at the beginning of the
chain guide the activities of all other firms in the chain.
C. requires skill in coordinating activities among different firms, and this has prompted
many firms to seek help from outside experts.
D. focuses on procuring materials needed for production, so its main weakness is that it
ignores customer needs.
E. concerns only direct relationships between producers, but a channel of distribution
may involve intermediaries.
Answer:
Coca-Cola runs an advertising campaign on morning radio shows encouraging current
customers to “have a Coke in the morning” instead of their morning coffee. This is an
example of:
A. market development.
B. product development.
C. diversification.
D. market penetration.
E. mass marketing.
Answer:
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.
Answer:
Which of the following is NOT one of the target marketing approaches for developing
market-oriented strategies in a broad product-market?
A. Multiple.
B. Single.
C. Exclusive.
D. Combined.
E. All of these are target marketing approaches.
Answer:
Macro-marketing:
A. is a social process.
B. tries to encourage “discrepancies of quantity” and “discrepancies of assortment.”
C. tries to disrupt supply and demand.
D. tries to foster the many separations between producers and consumers.
Answer:
Operational linkages are
A. direct ties between the internal operations of buyer and seller firms.
B. changes in a firm’s product or procedures that are unique to its relationship partner.
C. connections that outline contractual obligations.
D. services that link a buyer’s production and purchasing departments.
Answer:
In measuring consumer satisfaction, marketing managers should remember that:
A. customer satisfaction is a highly personal concept.
B. consumer expectations and aspirations tend to remain the same over time.
C. looking at the average level of satisfaction for a whole society provides a precise
description of macro-marketing effectiveness.
D. evaluations of macro-marketing effectiveness are purely objective in that they are
based on tabulated survey results.
E. All of these alternatives are correct.
Answer:
A report on a seller’s website that describes how an organizational buyer can make a
better decision on a particular topic is called a(n):
A. mission statement.
B. white paper.
C. executive summary.
D. online community.
E. outsource.
Answer:
Which of the following is not a benefit that an intermediary is likely to provide for
producer-suppliers?
A. reduce credit risk
B. reduce the need to store inventory
C. reduce the need for marketing research
D. reduce the need for working capital
E. All of these are likely benefits provided to suppliers.
Answer:
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.
Answer: