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The simple trade era was a time when families traded or sold their 'surplus" output to
local distributors who resold these goods to other consumers or distant distributors.
Answer:
Discretionary income is what is left after paying taxes.
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An individual product is a particular product within a product line.
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Maintaining the right level of inventory is easy now that there are tools to precisely
forecast and model demand.
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The correct number of submarkets in a broad product-market is usually obvious, so the
likelihood of managerial error is small.
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Retailers who earn high profits generally use higher markups than retailers who have
low profits.
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Total distribution costs may increase because of packaging.
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Exporting has an advantage compared to other types of international involvement,
because it is usually easier to drop or change arrangements as the firm's needs change.
Answer:
Sales-oriented pricing objectives-such as maintaining or increasing market share-are
unpopular because it is so difficult to measure results.
Answer:
During the last decade, the rate of advertising spending has increased in the U.S., but it
has decreased in the rest of the world.
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The first two letters in the S.W.O.T. analysis help managers examine customers,
competition, and the external marketing environment.
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The "total cost approach" to physical distribution focuses exclusively on the total cost
of transporting a product.
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In the U.S., the regulation of "deceptive" and "unfair" advertising is the responsibility
of the Federal Trade Commission.
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Business and individual managers are subject to both criminal and civil laws.
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Negotiated contract buying means agreeing to contracts that allow for changes in the
purchase arrangements.
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The terms mass marketing and mass marketers mean the same thing.
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When a large firm has several different kinds of products, product managers or brand
managers may be put in charge of each one.
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Purchasing managers are even more likely to be involved in buying by small service
firms than in buying by large producers.
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Although ships and barges are slow, they are the lowest cost method of freight
transporting, and are useful when speed is not critical.
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Offering superior customer value is especially important when competition is intense.
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Less than 15 percent of retail stores in the U.S. have annual average sales of $5 million
or more.
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Place is concerned with the selection and use of marketing specialists-intermediaries
and collaborators-and making goods and services available in the right quantities and
locations when customers want them.
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Samsung's placement of charging stations in airports and on college campuses is a good
example of a company offering its customers "branded services."
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The "four Ps" of the marketing mix are: Product, Position, Promotion, and Price.
Answer:
Favorable word-of-mouth information from opinion leaders can help a new product, but
a negative reaction by opinion leaders tends to have no effect.
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Most retailers and wholesalers set prices by using a different markup percent for each
different product carried.
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Getting attention to a particular advertisement is always easy.
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The single most important factor in screening possible marketing opportunities is the
long-run trends facing the company.
Answer:
Unfortunately, no laws prevent a retailer from using a phony list price-to make a
consumer think that the price being charged offers a really big discount.
Answer:
Looking at the "average" satisfaction of a whole society does not provide a complete
picture for evaluating macro-marketing effectiveness.
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Mass selling includes both advertising and publicity.
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The main function of a "distribution center" is to speed the flow of goods and avoid
unnecessary storage.
Answer:
A firm that is using marginal analysis to set prices finds that setting a price of $180 per
unit would result in the sale of 6 units. The total variable cost of production is equal to
$300 and total fixed cost is equal to $150. In this case, the firm's total revenue will be
_____.
A. $900
B. $1,800
C. $1,980
D. $1,620
E. $1,080
Answer:
Regarding the challenges facing marketers, the text suggests that:
A. government planners should play a major role in deciding what product choices
consumers should have.
B. continued growth of GDP is one favorable change in our macro-marketing system
that a marketing manager can count on.
C. there is likely to be much less regulation of marketing in the future, especially in
regard to consumer privacy.
D. marketers should look for ways to improve a strategy even before there's reason to
believe that something needs to be fixed.
E. All of these alternatives are correct.
Answer:
Physical distribution differs from logistics in that
A. logistics deals with storing and physical distribution does not.
B. logistics uses JIT to coordinate activities among firms and physical distribution does
not.
C. logistics includes customer service decisions and physical distribution does not.
D. logistics includes transporting goods and physical distribution does not.
E. physical distribution is another common name for logistics.
Answer:
A group of male college students are watching a professional football game in a sports
bar-and socializing with each other during the commercials. In the traditional
communication model, the socializing during the commercials is the:
A. Source
B. Receiver
C. Noise
D. Decoding
E. Encoding
Answer:
The __________ prohibits monopoly or conspiracy in restraint of trade.
A. Sherman Act
B. Clayton Act
C. Robinson-Patman Act
D. Antimerger Act
E. Magnuson-Moss Act
Answer:
Trying to sell a firm's new product to a large market at one low price is known as:
A. a skimming pricing policy.
B. introductory price dealing.
C. nonprice competition.
D. a penetration pricing policy.
E. a flexible-pricing policy.
Answer:
Macro-marketing:
A. Emphasizes how the whole marketing system works.
B. Considers how marketing affects society, but not how society affects marketing.
C. Matches homogeneous supply and demand.
D. Is mainly concerned with the activities of individual organizations.
Answer:
Transporting cost as a percentage of selling price is lowest for:
A. sand
B. factory machinery
C. pharmaceuticals
D. chemicals
E. cabbage
Answer:
The adoption curve concept is most closely related to which of the following?
A. "noise" in the communication process
B. sales promotion aimed at a company's own sales force
C. the product life cycle
D. selective demand
E. the AIDA model
Answer:
People who help order-oriented salespeople-but don't try for orders themselves are:
A. technical specialists.
B. missionary salespeople.
C. supporting salespeople.
D. All of these are correct.
Answer:
The competitive environment that most marketing managers experience in developed
economies is:
A. monopoly.
B. monopolistic competition.
C. pure competition.
D. oligopoly.
E. regulated competition.
Answer:
In this method of budgeting, the spending level is based on the number of new
customers desired and the percentage of current customers that the firm must retain to
leverage investments in already established relationships.
A. Basing the budget on the job to be done
B. Basing the budget on any uncommitted revenue
C. Setting the budget as a certain number of cents or dollars per sales unit
D. Matching expenditures with competitors
E. Setting the budget based as a certain number of dollars per person
Answer:
Concerning product life cycles:
A. each of a producer's individual products follows the life cycle pattern.
B. in the early part of market maturity, new products begin to replace the old.
C. the stages usually have varying lengths.
D. in general, life cycles are getting longer.
E. None of these alternatives is true.
Answer:
A sales-oriented objective may seek all of the following except
A. some level of unit sales.
B. some level of dollar sales.
C. target return profits.
D. share of the market.
E. percentage of the market.
Answer:
Budgeting for promotion expenditures by computing a percentage of past or expected
sales:
A. is the most common method of setting the promotion budget.
B. is a complex method of budgeting.
C. will increase promotional expenditures when business is poor.
D. is especially suitable for new products.
E. none of these alternatives is correct.
Answer:
Regarding marketing strategy planning:
A. Managers usually know all they need to know about the needs and attitudes of their
target markets.
B. Competitors cannot force a firm to shift its marketing mix.
C. Changes in the dimensions of the market environment have no effect on a firm's
marketing mix.
D. The lack of a complete understanding of the target market can make it difficult to
combine the four Ps into a suitable marketing mix.
E. None of these alternatives is correct.
Answer:
When a company becomes aware that a new product is being test marketed by one of its
competitors in St. Louis, it decides to create a similar product and rush it to market.
This company can be described as a(n):
A. copycat.
B. innovator.
C. me-too imitator.
D. first mover.
Answer:
________ offer "hard goods" at substantial price cuts to customers.
A. Supermarkets
B. Discount houses
C. Supercenters
D. Mass-merchandisers
E. Convenience stores
Answer:
Which sales presentation would be "best" for convenience (food) store clerks?
A. Selling formula approach
B. Prepared sales presentation
C. Target market presentation
D. Consultative selling approach
E. None of these is a good answer.
Answer:
"Good" market segments are those which are:
A. heterogeneous between.
B. operational.
C. substantial.
D. homogeneous within.
E. All of these choices are correct.
Answer:
The Roulette Corporation, a video game manufacturer, sets a single price for a set of 5
video games, a video game console, and a pair of speakers. This pricing strategy is
called _____.
A. full-line pricing
B. complementary product pricing
C. product-bundle pricing
D. bid pricing
E. psychological pricing
Answer:
An item costs a retailer $140. If a 30 percent markup is desired, what should the retail
selling price be?
A. $191.00
B. $242.00
C. $182.00
D. $140.30
E. $200.00
Answer:
Reverse channels may be used to retrieve products from:
A. business customers
B. intermediaries
C. business customers and intermediaries
D. final consumers
E. all of these
Answer:
Customer relationship management (CRM) helps consumer marketers:
A. limit their personalization efforts.
B. treat all submarkets as a single huge market.
C. reduce their focus on local customers.
D. deliver different marketing mix to different customer segments.
E. ignore the differences in the needs and preferences of target customers.
Answer:
Impulse products:
A. can have limited availability as long as display is good.
B. need widespread distribution with display at point of purchase.
C. need enough exposure to facilitate price comparisons.
D. need adequate representation in major shopping areas.
E. need widespread distribution at low cost.
Answer:
Identify the INCORRECT observation about Asian Americans.
A. Asian Americans are the largest and fastest-growing ethnic group in the United
States.
B. The number of Asian Americans has more than tripled since 1980.
C. Asian Americans have the highest median family income of the major ethnic groups.
D. In 2010, they spent over $500 billion.
E. Because of their income, many companies are targeting these consumers.
Answer:
Customer service reps:
A. are advocates for the customer.
B. solve problems after a purchase.
C. are advocates for the company.
D. promote the customer's next purchase.
E. all of these alternatives are correct.
Answer:
For a homogeneous shopping product, a marketing manager should
A. provide enough exposure to facilitate price comparison.
B. understand that price sensitivity is likely to be low.
C. recognize that consumers see a lot of differences across alternatives.
D. realize that consumers usually pay little attention to price.
E. know that consumer purchases are typically unplanned and bought quickly.
Answer:
Which of the following chains is the largest food retailer in the U.S.?
A. Kroger's
B. Safeway
C. Walmart
D. Target
E. Kmart
Answer:
Institutional advertising:
A. may try to improve a firm's image with shareholders.
B. may seek to inform, persuade, or remind.
C. may try to improve a firm's image with the general public.
D. focuses on the name and prestige of a company or industry.
E. All of these alternatives are correct.
Answer:
Discretionary income is defined as:
A. total market value of goods and services produced.
B. gross domestic product per capita.
C. income available after taxes.
D. income available before taxes.
E. income available after taxes and necessities.
Answer:
Inventory refers to
A. the amount of goods being stored.
B. minimizing storage costs.
C. the amount of goods being sold.
D. the marketing function of holding goods.
E. the quality of goods being stored.
Answer:
Which of the following is true regarding JIT systems?
A. JIT systems do not have backup inventory.
B. JIT usually entails less frequent deliveries.
C. JIT requires manufacturers to add new warehouses.
D. JIT requires suppliers to respond to very short order lead times and the customer's
production schedule.
E. Manufacturers must locate their facilities next to important customers in order to
practice JIT.
Answer:
Pioneer has developed a new consumer electronics item-a heterogeneous shopping
product with unique patented features. It probably should use a marketing mix of:
A. exclusive distribution, price cutting, reminder advertising, and a "push" policy.
B. exclusive distribution, penetration pricing, informative and persuasive advertising,
and a "pull" policy.
C. selective distribution, skimming pricing, pioneering advertising, and a "push" policy.
D. selective distribution, penetration pricing, persuasive advertising, and a "pull" policy.
E. intensive distribution, persuasive advertising, price dealing, and a "push" policy.
Answer:
A cleaning service that provides a description of its services via its website is most
likely accomplishing which of the following promotion objectives?
A. Persuading
B. Informing
C. Prioritizing
D. Strategizing
E. Reminding
Answer:
