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Regarding new-product development, market tests:
A. are used mostly for durable products because of their high production costs and
risks.
B. seek customer reactions to ideas-not actual products.
C. should test the product and specific marketing mix variables.
D. are not very costly, but take a long time to do.
E. None of these alternatives is correct.
Answer:
Which of the following statements does not accurately characterize new-product
development?
A. New-product development is costly.
B. Some companies move too fast to launch a new product.
C. Some companies move too slow to launch a new product.
D. New-product development has a high risk of failure.
E. New-product development has a low risk of failure.
Answer:
Hallmark advertises its gift items with the popular tagline, "When you care enough to
send the very best." Here, Hallmark's marketing effort focuses on satisfying what level
in the hierarchy of needs?
A. Social
B. Safety
C. Physiological
D. Personal
Answer:
A flexible-price policy means offering
A. different products and quantities to different customers at different prices.
B. the same product and quantities to different customers at same prices.
C. different products and quantities to different customers at same prices.
D. the same product and quantities to different customers at different prices.
E. the same product and different quantities to different customers at same prices.
Answer:
Which of the following is NOT an advantage of vertical integration?
A. Lower executive overhead
B. Better control of distribution
C. Easier adjustment of discrepancies of quantity and assortment
D. Greater buying power
E. Stable sources of supplies
Answer:
Which of the following is part of a complete marketing plan?
A. Competitors' marketing strategies.
B. What company resources (costs) are required and at what rate.
C. How different marketing mixes (for different target markets) relate to each other.
D. All of these are parts of a complete marketing plan.
Answer:
According to the text, product life cycles are:
A. getting longer.
B. speeding up in the later stages.
C. now about the same length as 100 years ago.
D. getting shorter.
E. slowing down in the early stages.
Answer:
These salespeople try to develop goodwill and stimulate demand, help intermediaries
train their salespeople, and often take orders for delivery by intermediaries.
A. Order takers
B. Customer service reps
C. Missionary salespeople
D. Technical specialists
E. Account representatives
Answer:
Marketing inefficiencies are due to all of the following reasons EXCEPT
A. lack of interest in the customer.
B. improper blending of the four Ps.
C. lack of understanding of the market environment.
D. listening too closely to the "voice of the customer."
E. lack of understanding of the fickle customer.
Answer:
Which of the following criteria should a marketing manager use when segmenting a
broad product-market?
A. The segments should be operational-i.e., only quantitative dimensions are useful.
B. The people in different segments should be as heterogeneous as possible with respect
to their likely response to marketing mix variables.
C. The people within a market segment should be as heterogeneous as possible with
respect to their likely response to marketing mix variables.
D. The market segments should be substantial-i.e., big enough to minimize the firm's
costs.
E. All of these criteria would be useful.
Answer:
If a consumer product is used regularly and usually bought frequently and routinely
with little thought (although branding may be important), this product is:
A. a routine product.
B. a specialty product.
C. a homogeneous shopping product.
D. a staple product.
E. a casual product.
Answer:
The future poses many challenges for marketing managers because:
A. international competition makes it even harder to gain a competitive advantage.
B. consumers' rights of privacy are harder to protect.
C. long-run consumer welfare is becoming more important.
D. environmental damage is no longer a hidden cost.
E. all of these are good reasons why the future poses many challenges.
Answer:
A one-price policy means offering the same price:
A. All four seasons of the year.
B. For all types of merchandise.
C. For individual consumers and organizational buyers.
D. For store brands and national brands.
E. To all customers.
Answer:
A Xerox photocopy machine in the university chancellor's office is an example of what
type of business product?
A. Installation
B. MRO product
C. Accessory
D. Component part
E. Component material
Answer:
Most sales presentations follow the AIDA sequence which stands for
A. Attention, Interest, Desire, Action
B. Attention, Interest, Develop, Appeal
C. Attention, Involvement, Desire, Action
D. Attention, Involvement, Desire, Appeal
E. Attention, Interaction, Development, Action
Answer:
Regarding the adoption curve, marketers may determine that there is little to be gained
from trying to inform or influence the:
A. Innovators.
B. Early adopters.
C. Early majority.
D. Late majority.
E. Laggards.
Answer:
When a firm's average variable cost is constant-no matter how much is produced-then
the firm's:
A. average cost will increase as the quantity produced increases.
B. fixed cost must be zero.
C. average cost will also be constant.
D. average fixed cost will also be constant.
E. average cost will decrease as the quantity produced increases.
Answer:
Compared to private warehouses, PUBLIC warehouses:
A. are not any more flexible because long-term leases are usually required.
B. may not always be conveniently available or adequate for current product line.
C. require no fixed investment but per unit storing costs are usually higher.
D. reduce managerial flexibility.
E. All of these alternatives are correct.
Answer:
Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers.
Its competitor down the street sells the same mowers at a special price by special order
but does not carry any inventory. This situation creates
A. vertical conflict.
B. exclusive distribution rights.
C. competitive discrepancy.
D. horizontal conflict.
E. reverse channels.
Answer:
A publisher of photography books finds that it is cost-effective to print 10,000 or more
at a time. But a bookstore orders only a few copies of each book since its customers
want to select from a wide variety. This example shows
A. why discrepancies of quantity occur.
B. why both discrepancies of quantity and assortment occur.
C. neither discrepancies of assortment or quantity.
D. why discrepancies of assortment occur.
E. multichannel distribution.
Answer:
What percentage of customers trust ads that appear on smartphones as credible sources
of buying information?
A. 17 percent
B. 29 percent
C. 36 percent
D. 41 percent
E. 56 percent
Answer:
Which of the following statements regarding the 'sales era" is true?
A. The emphasis was on producing.
B. A business problem was to decide where to put the company's effort.
C. More production capability was available than ever before.
D. It followed the marketing department era.
Answer:
Regarding the storing function:
A. Public warehouses are storing facilities owned or leased by companies for their own
use.
B. Private warehouses are most useful when a company does not have a regular need
for space.
C. Public warehouses are independent storing facilities and provide a full range of
services.
D. Private warehouses are designed to speed the flow of goods.
E. None of these alternatives is correct.
Answer:
SuperClean Inc., a company popular for its cleaning products, has gained expertise in
the maintenance of wooden floors and carpets through intense research over the years.
It decides to share some of that expertise with its potential customers through the
MySuperClean app for smartphones and tablet computers. The app has suggestions for
treating different types of stains on carpets and wooden surfaces. It also allows readers
to post comments, provide suggestions, and share photos. In this case, SuperClean Inc.
is:
A. pursuing a reactive customer relationship approach.
B. incorporating an indirect-response promotion aimed at a mass audience.
C. using an hard-sell approach to promote its products.
D. helping target customers solve problemswhether the solution requires its products or
not.
E. using personal selling to exclusively promote its products.
Answer:
Use this information for question that refer to the Pricing 1 case. (WPI) case.
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. Regarding freight charges for its equipment, NPE's invoice reads, "Seller pays
the cost of loading equipment onto a common carrier. At the point of loading, title to
such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
Which business offers a CUMULATIVE quantity discount?
A. Digital Imaging
B. Jack's One Hour Cleaners
C. National Printing Equipment
D. Ross Pharmaceuticals
E. Bella Computers
Answer:
Which of the following statements about target marketing is incorrect?
A. Target marketing is not mass marketing.
B. Mass marketers like Kraft and Walmart may conduct target marketing.
C. Target marketing is not limited to small market segments.
D. Target marketing assumes that everyone is different and specifies some particular
target customers.
E. Target marketing is associated with the typical production-oriented approach that
aims at everyone with the same marketing mix.
Answer:
Psychographics or life-style analysis analyzes an individual's:
A. opinions.
B. demographics.
C. activities.
D. interests.
E. all of these alternatives are correct.
Answer:
Fine Art Salon and Spa recently hired Natalie as a receptionist. Her job mainly involves
greeting customers, booking appointments, and connecting customer calls to the
appropriate department. One of the walk-in customers asked Natalie to recommend a
natural treatment to reduce the dryness on his skin. Natalie replied that he would have
to wait to meet the spa manager as this was not her job. How should the manager at the
Spa react to Natalie's response?
A. The manager should be happy that Natalie is not deviating from the job description.
B. The manager should promote Natalie to the position of a customer service rep.
C. The manager should ask Natalie not to interact with walk-in customers in any
situation.
D. The manager should train her so that she knows a about the spa's products and how
to sell them.
Smart companies make sure that everyone in the organization who talks to customers
knows at least something about selling. Selling may be done by almost anyone in the
organization. Everyone who works with a company can represent that company's
products and services in a favorable light, i.e., sell.
Answer:
Organizational customers:
A. Purchase goods in order to satisfy their customers, but the services they purchase are
for themselves.
B. Are more emotional in their buying than final consumers.
C. Try to consider the total cost of selecting a supplier, not just the initial cost of the
product.
D. Typically focus on behavioral needs instead of economic factors in making
purchases.
E. None of these alternatives is correct.
Answer:
The following headlines are for articles from the WALL STREET JOURNAL. Which
article is most likely to be reporting a macro-marketing topic?
A. "Mercedes Goes after Luxury Sport Utility Buyers."
B. "Adidas Jumps as Footwear Competition Heats Up."
C. "Drugstore Chain Aims at Seniors."
D. "Hardee's Fried Chicken Takes on KFC."
E. "DVD Popularity Leads to More DVD Retailers."
Answer:
Franchisors:
A. account for about a third of all retail sales.
B. often provide franchise holders with training.
C. usually receive fees and commissions from the franchise holder.
D. are especially popular with services retailers.
E. all of these alternatives are correct for franchisors.
Answer:
Sales promotion:
A. usually lasts for only a limited time period.
B. spending has grown rapidly in mature markets.
C. involves a wide variety of activities which often require the use of specialists.
D. can make the personal selling job easier.
E. All of these alternatives are correct.
Answer:
Sierra Plumbing, Inc. buys plumbing supplies, pipes, and tools from different
manufacturers and resells them to construction companies. Sierra is MOST LIKELY:
A. a rack jobber.
B. a service (merchant) wholesaler.
C. a drop-shipper.
D. an agent wholesaler.
E. a manufacturers' agent.
Answer:
