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A producer is likely to focus its promotion effort on stimulating primary demand at
what stage in the product life cycle?
A. Market introduction
B. Market growth
C. Market maturity
D. Sales decline
E. When selective demand is over.
Which of the following is a consumer market demographic dimension?
A. Income distribution.
B. Stage in family life cycle.
C. Family size.
D. Ethnic group.
E. All of these are examples of a consumer market demographic dimension.
Regarding product life cycles, good marketing managers know that:
A. any new brand must start off in the market introduction stage.
B. any product modification results in a new product life cycle.
C. product life cycles cannot be extended.
D. a firm's product can be withdrawn before its related product life cycle is over.
E. All of these alternatives are true.
Which of the following is MOST likely to be classified as a marketing intermediary?
A. Apex Manufacturing, Inc.
B. Lillian's Mini-Market.
C. McGraw Hill/Irwin.
D. Kellogg.
E. Golden Arbor Farms.
Regarding transporting by truck:
A. Trucks are best for moving large quantities of goods long distances.
B. Trucks are a very low cost mode of transportation.
C. Trucks are not reliable in meeting delivery schedules.
D. Trucks tend to provide fast delivery.
E. None of these alternatives is correct.
"Discrepancies of quantity" means:
A. there are more producers than consumers.
B. there are more consumers than producers.
C. the difference between the product lines the typical producer makes and the
assortment wanted by consumers or final users.
D. consumers want more products than producers can make.
E. the difference between the quantity of products it is economical for an individual
producer to make and the quantity normally wanted by individual consumers or users.
Just-in-time (JIT) delivery
A. is always the best approach.
B. reduces customers' physical distribution costs.
C. increases storing and handling costs.
D. shifts responsibility for physical distribution activities forward in the channel.
E. requires customers to have high quality standards in physical distribution activity.
According to the text, the economic-buyer theory
A. says that most consumers do not know the economic value of products they
purchase.
B. explains why people behave the way they do.
C. includes psychological variables and social influences.
D. is too simplistic to explain consumer behavior.
E. assumes that consumers always buy the lowest price alternative.
Overall company objectives should:
A. be specific.
B. focus on returning some profit to the business.
C. be realistic and achievable.
D. be compatible with one another.
E. All of these are correct.
Product classes help marketing managers understand how much market exposure will
be needed in each geographic area.
A firm's _____ is usually responsible for finding and allocating capital.
A. chief financial officer
B. chief operating officer
C. chief technology officer
D. chief executive officer
E. chief marketing officer
The marketing concept can be applied by:
A. nonprofit hospitals.
B. symphony orchestras.
C. private universities.
D. manufacturers of consumer products.
E. all of these organizations can apply the marketing concept.
The AIDA model includes all of the following promotion jobs EXCEPT:
A. increasing demand.
B. obtaining action.
C. arousing desire.
D. getting attention.
E. holding interest.
Honda Motor Co. prices its whole line (from the $15,000 Honda Fit economy sedan to
the $40,000 Pilot SUV) so that it offers high quality at reasonable prices. What pricing
policy is Honda using?
A. Cumulative quantity discount
B. Value pricing
C. Bundle pricing
D. Introductory price deal
E. Skimming price
The "mass-merchandising" concept:
A. suggests aiming at small but profitable target markets.
B. focuses on increasing sales and speeding turnover by lowering prices.
C. supports the conventional retailer's "buy-low and sell-high" philosophy.
D. stresses the need for conventional stores.
E. All of these alternatives are correct for the "mass-merchandising" concept.
Wilson sells a basketball to a wholesaler for $16, and the wholesaler applies a 20
percent markup. A retailer then applies a 33.3 percent markup. The final selling price is:
A. $24.53.
B. $30.00.
C. $25.59.
D. $28.00.
E. Cannot be determined from the information given.
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager-and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
What type of compensation plan should Ben Peterson have?
A. straight salary.
B. straight commission.
C. a combination of salary and commission.
D. a salary that is paid only if a certain sales quota is achieved.
E. Any of these is equally appropriate for Ben's job.
In determining cash flow, managers often look at a company's
A. net profit figure shown on the firm's operating statement.
B. earnings before subtracting out noncash expenses.
C. earnings after subtracting noncash expenses.
D. revenue after subtracting depreciation of facilities.
E. historical net profit numbers.
Psychographics is the analysis of a person's day-to-day pattern of living as expressed in
that person's
A. safety, social, and personal needs.
B. actions, interests, and occupation.
C. activities, interests, and opinions.
D. culture, beliefs, and attitudes.
E. psychological and physiological needs.
Saxon Shoes is a large independent shoe store. In the men's department, the store offers
three different brands of slip-on tassel loafers for men: Bass, priced at $75; Rockport,
priced at $125; and Allen Edmonds, priced at $250. In terms of product quality, which
of the following is an accurate statement?
A. The Bass shoes have the lowest quality.
B. The Allen-Edmonds shoes have the highest quality.
C. The Rockport shoes have mid-level quality.
D. The quality of the three brands depends on the degree to which they meet the needs
of the consumers in the target market.
E. All of these alternatives are correct.
Which of the following is NOT true about multichannel shopping?
A. The growth of online retailing makes it easier for consumers to use multichannel
shopping.
B. Consumers that inspect products in a brick-and-mortar store and buy at a lower from
a different retailer online multi-shopping.
C. Smartphone apps make it easier to multichannel shop.
D. All retailers like multichannel shopping.
E. Multichannel shoppers move through different retailers as they move through the
purchase process.
Which of the following statements about future trends in marketing is True?
A. Marketers should welcome international competition because it will speed the
adoption of marketing innovations that improve people's lives.
B. Marketers need to recognize the power that technology gives consumers.
C. Marketers need to be aware of their responsibilities to the broader society.
D. Marketers must be sensitive to consumers' rights and privacy.
E. All of these statements about future trends in marketing are True.
With the ____________ approach, the salesperson uses a memorized presentation that
is not adapted to each individual customer.
A. Prepared sales
B. Consultative selling
C. Selling formula
D. Fixed sales
E. Differentiated value
Which of the following is LEAST likely to be classified as a marketing collaborator?
A. Mayflower Transport Company.
B. Internet Advertising, Inc.
C. Wachovia Bank.
D. Market Survey Research, Inc.
E. Quality Coatings and Paint Company.
The task method of budgeting for promotion expenditures:
A. Links the budget to the promotion objectives set by the company.
B. Involves determining the promotion methods that will effectively achieve the
communication tasks required.
C. Involves determining the promotion methods that are most economical for the
relevant communication tasks.
D. May result in significantly different promotional expenditures from year to year.
E. All of these alternatives are correct.
Mark is trying to determine his firm's average cost per unit of production. He finds that
the cost for all labor and materials is $80,000 and fixed overhead expenses are $40,000.
If the company produces 20,000 items in the time period, the average cost is
A. $12.
B. $2.
C. $6.
D. $4.
E. $10.
With the "contribution-margin approach" to marketing cost analysis,
A. all costs are allocated to products, customers, or other categories.
B. fixed costs are allocated based on the profit contribution to the firm.
C. variable costs are treated as common costs.
D. common costs which are hard to allocate are ignored.
E. None of these is true.
Regarding supermarkets, which of the following is NOT true?
A. They introduced self-service to reduce their costs.
B. After-tax profits are very goodaveraging 10 to 15 percent of sales.
C. The newer ones carry 47,000 product items.
D. They average about $17 million a year in sales.
E. They got their start as an experiment during the Depression.
When segmenting markets, cost considerations typically encourage a company to
________ and ________.
A. disaggregate; combine segments
B. aggregate; use different segments
C. disaggregate; use different segments
D. aggregate; combine segments
E. disaggregate; use one segment
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.
Which of the following could serve as a firm's mission statement?
A. Green is good
B. Promote all brands using viral videos
C. We aim to boost annual sales by 15 percent
D. Create three new product lines
E. We exist to provide customers with the best shopping experience anywhere in
cyberspace.
