An important goal of physical distribution is reducing the:
a. inventory management.
b. outsourcing evaluation.
c. electronic data interchange.
d. order processing.
e. cycle time.
There is some concern that marketing research has been used incorrectly by some firms.
The major problem comes from because the researcher wants to obtain favorable
results.
a. an inappropriate sample
b. bias and distortion
c. being objective about views and opinions
d. in-house research departments
e. hiring large research firms
Scenario 12.3
Use the following to answer the questions.
Glenwood Pet Hospital is considering implementing a new pricing strategy for its
veterinarian services. After reviewing the previous three years’ revenue, Glenwood
finds that most of its customers bring their pets in for the required annual vaccinations
only if the animal is ill. Glenwood’s objective is to generate more income per customer
on an annual basis. The hospital has previously priced its services by charging a flat fee
for the office visit, a fee for each vaccine, and a fee for each type of examination
beyond the basic office visit. Most customers pay the flat office fee and a fee for a
rabies vaccine. Glenwood is now considering a new plan where the pet owner would
pay one fee that would cover an office visit, the required rabies vaccine, and additional
vaccines that prevent
heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners to
view their pet’s health as part of a prevention program, rather than a one-time annual
visit.
Refer to Scenario 12.3. Glenwood’s new pricing strategy is an example of pricing.
a. cost-based
b. psychological
c. customary
d. bundle
e. demand-based
The Mont Blanc Company plans to export expensive consumer gift items to Germany.
The best overall economic measure of market potential would be Germany’s .
a. gross domestic product
b. gross domestic product per capita
c. gross national product
d. balance of trade
e. unemployment rate
Designing a product that customers perceive as different from competing products is an
example of product differentiation.
a. True
b. False
A manufacturer-owned operation that provides services usually associated with agents
is a___________.
a. facilitating agency
b. wholesaler
c. sales office
d. sales branch
e. public warehouse
A bribe offered to benefit an organization is generally considered acceptable.
a. True
b. False
When an organization introduces a new product, people do not begin the adoption
process at the same time, nor do they move through the process at the same speed.
a. True
b. False
A firm can identify changes in public opinion that affect it by conducting .
a. environmental monitoring
b. consumer polling
c. a consumer jury
d. a communications audit
e. a press conference
Marketing researchers should allow for continual evaluation of the data during the
entire data collection period.
a. True
b. False
Wholesalers frequently help retailers with developing a marketing strategy, especially
as it relates to the_______component of the marketing mix.
a. distribution
b. promotion
c. product
d. price
e. channel
Which of the following competitive structures is rarely followed by organizations?
a. Monopoly
b. Monopolistic competition
c. Oligopoly
d. Elastic competition
e. Pure competition
Scenario 5.1
Use the following to answer the questions.
Lil’ Angels Kids Spa offers various treatments designed to appeal to the younger
customers. Treatment options include manicures, pedicures, facials, tea parties, and
dress up photos. Parents can even purchase a birthday party package. Currently, Lil’
Angels offers its services only to girls under the age of 14. Originally begun in
Delaware, Lil’ Angels is considering opening its spa/salons in other parts of the country
and is planning to expand its offerings to girls aged 14 to 17. The company realizes that
some changes may be needed. For example, the management wants to find out if the
older girls will be interested in their birthday party and tea party services.
Which method should Lil’ Angels use to forecast sales in new regions?
a. Sales force survey
b. Time series analysis
c. Correlation method d. Market test
e. Regression analysis
Customers are the focal point of all marketing activities.
a. True
b. False
Apollo Auto Supply sells car and truck parts, as well as tire replacement and balancing
services. As Apollo Auto Supply places its order for truck tires with the tire
manufacturing company Cratus, it must also place an order for valve stems and
balancing weights for the tires. Such business products are characterized as having
a(n)____ demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
At times, large retailers may be accused of coercion in dealing with intermediaries
because of the amount of power and control these large companies have over many of
their suppliers. This is most potentially a ____related ethical issue.
a. promotion
b. pricing
c. culture
d. product
e. distribution
The sales prediction technique based on the correlation between sales and other factors
such as population density, per capita income, or family size is:
a. executive judgment.
b. time series analysis.
c. regression analysis.
d. a market test.
e. an expert survey.
Overall channel goals and individual channel member goals cannot be achieved
together without:
a. conflict.
b. captains.
c. leadership.
d. cooperation.
e. tying agreements.
Most marketers depend on one-sale customers for long-run survival.
a. True
b. False
Why is it essential that a questionnaire be carefully designed and prepared? Describe
the three kinds of questions used in research project.
Identify and describe the four major promotion mix elements.
What are the components of a print ad? What are the functions of each component?
Explain what is meant by price elasticity of demand.
Compare and contrast a line extension and a product modification.