Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Parents who spent years limiting purchases to home necessities and kids' entertainment
often embrace more luxury-oriented buying patterns later in life. This phenomenon is
related to:
A. changes in purchase situation.
B. selective retention.
C. reinforcement.
D. changed physiological needs.
E. empty nester behavior.
Answer:
Which of the following reached market maturity over a 15-year period starting in 1970?
A. Catalog showrooms
B. Fast-food outlets
C. Single-line mass merchandisers
D. Mass-merchandisers
E. Supercenters
Answer:
Impulse products:
A. are likely to gain or lose sales depending on where they're sold.
B. require a great deal of advertising.
C. are a specific type of specialty product.
D. are usually high in price.
E. All of these alternatives are correct.
Answer:
Regarding U.S. government market buying,
A. a buyer may order from a supplier on the "approved list" at a previously set
price-without asking for new bids.
B. most buyers write specs so that only one brand or supplier qualifies.
C. it is illegal for a salesperson to try to influence the writing of product specifications.
D. most buyers buy by inspection since they are expected to spend money wisely.
E. None of these alternatives is true.
Answer:
When considering the advertising medium of outdoor and cinema, which of the
following advantages and disadvantages apply?
A. Very targeted, good detail, good "pass along," but inflexible and long lead times.
B. Flexible, timely, local market, but may be expensive, have a short life, and no "pass
along."
C. Selected audience, flexible, can be personalized, but relatively expensive per contact
and hard to retain attention.
D. Demonstrations, good attention, and wide reach, but expensive in total, has a lot of
clutter, and not always selective audience.
E. Captive audience, but outdoor has very short exposure times and cinema has
primarily a young audience.
Answer:
Of the following, which are the most receptive to new products and new brands?
A. Families with small children.
B. Older people with no children.
C. Families with teenagers.
D. Families whose children are grown.
E. Younger people with no children.
Answer:
Advertising agencies
A. can be helpful, but they are always more expensive than a firm doing its own
advertising work.
B. must be selected very carefully since most agencies require long-term contracts.
C. that are smaller in size will probably continue to play an important role despite the
creation of mega-agencies.
D. usually specialize in one particular type of work, such as sales promotion planning
or website design.
E. None of these alternatives is correct.
Answer:
Limited problem solving probably would be required by "empty-nesters" in the
purchase of:
A. sports clothes.
B. restaurant's services.
C. plumbing repair service.
D. a replacement garbage disposer.
E. all of these are correct.
Answer:
A producer wants to increase the amount of time its sales reps spend on supporting
activities. It also wishes to keep its sales reps motivated and aggressive, without
completely removing income security. Which payment plan should the firm use?
A. Straight salary
B. Combination plan
C. Straight commission
Answer:
Large wholesale and retail buyers typically:
A. pay close attention to each of the products they buy.
B. don't trust automatic inventory control methods.
C. see themselves as selling agents for manufacturers.
D. buy most of their products as straight rebuys.
E. None of these alternatives is correct.
Answer:
Regarding organizational buying, the people who have the power to select or approve
the supplier-especially for larger purchases-are called:
A. influencers.
B. deciders.
C. buyers.
D. gatekeepers.
E. users.
Answer:
A complete marketing information system should:
A. provide a good overall view on many types of problems.
B. organize incoming information into a data warehouse.
C. provide answers to specific questions.
D. continually gather data from internal and external sources, and from market research
studies.
E. All of these alternatives are true.
Answer:
A producer makes an item for $32 and sells it with a 50 percent markup to a wholesaler.
The wholesaler then applies a 20 percent markup. A retailer then uses a 60 percent
markup. The final retail selling price is:
A. $200.00.
B. $73.60.
C. $64.00.
D. $80.00.
E. Cannot be determined without stockturn information.
Answer:
Which of the following statements about "hierarchy of needs" is FALSE?
A. As soon as lower level needs are reasonably satisfied, those at higher levels become
more dominant.
B. A higher level need may develop before lower level needs are completely satisfied.
C. The order in which needs are satisfied follows a definite pattern-with lower level
needs being completely satisfied first.
D. A particular product may satisfy more than one need at a time.
E. None of these statements about "hierarchy of needs" is FALSE.
Answer:
A drop-shipper is an example of a(n)
A. limited-function merchant wholesaler.
B. service merchant wholesaler.
C. agent wholesaler.
D. producer.
E. manufacturer's agent.
Answer:
Which of the following observations is NOT TRUE of monopolistic competition?
A. A number of different firms offer marketing mixes that at least some customers see
as different.
B. Marketing managers try to differentiate very similar products by relying on other
elements of the marketing mix.
C. Each competitor tries to get a monopoly in its own target market.
D. Most marketing managers in developed economies do not face monopolistic
competition.
E. Competition exists because some customers see various alternatives as substitutes.
Answer:
_________ concerns the extent to which data measures what it is intended to measure.
A. Conformance
B. Reliability
C. Depth
D. Validity
E. Penetration
Answer:
Which of the following is NOT an explanation for why MICRO-marketing may cost
too much in some firms?
A. Some managers make decisions as if customers are eagerly awaiting any product
they produce.
B. Production managers focus on designing products that are easy to make.
C. Financial managers reduce finished-product inventories and force "out of stock"
situations.
D. Marketing managers do target marketing.
E. Some managers don't see a business as a "total system" focused on customers.
Answer:
"Empty nesters":
A. are senior citizens.
B. are people over 65 who live alone.
C. often have high incomes and fewer required expenses.
D. are singles and couples without children-who have much discretionary income.
E. None of these alternatives is correct.
Answer:
Use this information for question that refer to the United Tools case.
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customers-a mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each option-and the distribution service levels that can be achieved-are as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
One of United's biggest customer has placed a very large, heavy order. Its warehouse is
in a location served by all transport modes, and the customer has directed United to ship
the order by the mode with the lowest transport costs. In this situation, United will
probably ship the tools by
A. airfreight.
B. trucks.
C. waterways.
D. railroads.
Answer:
Gina Williams wanted to start a decorating business. She identified several possible
target markets, but decided to serve a market composed of recently married couples that
owned their first home. Gina appears to be following:
A. A multiple target market approach.
B. A single target market approach.
C. A combined target market approach.
D. A mass marketing approach.
E. None of these approaches is correct.
Answer:
A jewelry store advertises a one-carat diamond engagement ring as being discounted 50
percent off the original price of $10,000, for a sale price of $5,000. However, the ring
was never put on sale at the original price, and its actual cost to the retailer was only
$1,500. This jewelry store could be accused of using:
A. Price fixing.
B. Phony list prices.
C. Dumping.
D. Price discrimination.
E. Unfair trade practices.
Answer:
Use the following information to answer the following question that refer to the Sure
Foot case.
Sure Foot, Ltd. produces high-quality shoes and boots for serious hikers.
Sure Foot's shoes have suggested retail prices ranging from just under $40 to about
$150. Usually, the retailer buys the shoes for about 50 percent less than the list price,
and the retailer pays the freight charges from Sure Foot's plant in Maine. Sure Foot's
credit terms are 2/10, net 30. Although Sure Foot's brand appears on every shoe-the
firm does very little mass selling, except for a limited program of cooperative
advertising and some sales promotion at walking events.
Sure Foot's shoes are carried by "better" sporting goods stores all across the
nation-although usually in fairly small quantities. Its main showroom is in Boston,
where two salaried salespeople handle most of the firm's large accounts. Sure Foot's
products are also sold by seven independent "field reps" who are paid a 5 percent
commission on all sales. Each of these field reps is responsible for a several state
territory-emphasizing mostly the small stores in or near major cities. The field reps
carry Sure Foot's products as a minor line-but none of their lines are competitive with
each other.
The walking shoe market is supplied by 7 large firms and 50 or more smaller firms.
While these firms are competitive, they do vary their materials, styles, prices, and
promotion. The "high-quality" market is supplied by only 5 firms-Sure Foot being the
largest. While these firms are also competitive, they generally offer a more limited
assortment of materials, styles, and prices because the "high-quality" part of the market
is not as large-and does not appear to be growing any more.
Assuming that Sure Foot wants to be in only the "better" stores-and mainly in large
metropolitan areas-it seems to be seeking:
A. selective distribution.
B. exclusive distribution.
C. intensive distribution.
Answer:
Specific adaptations are usually required when a buyer chooses _____, which is a
contract with an external firm to produce goods or services rather than the buyer
producing them internally.
A. gatekeeping
B. resident buying
C. competitive bidding
D. outsourcing
E. auctioning
Answer:
A target marketer who uses a single marketing mix strategy to appeal to both office
tablet computer users and home tablet computer users is applying:
A. the broad market approach.
B. the single target market approach.
C. the multiple target market approach.
D. the combined target market approach.
E. the generic market approach.
Answer:
When a company segments its business customers on the basis of whether or not they
require contract bids over the Internet, what segmenting dimension is this company
using?
A. Kind of relationship
B. Demographics
C. Type of customer
D. How customer will use product
E. Purchasing methods
Answer:
When focus group interviews are used in marketing,
A. each person in the group answers the same questionnaire, to focus the discussion.
B. the typical group size is 15 to 20 typical consumers whether online or off-line.
C. it is primarily as a follow-up to more quantitative research.
D. the research conclusions will vary depending on who watches the interview whether
online or off-line.
E. the consumer in the group who knows the most about the topic is asked to lead the
discussion.
Answer:
Which of the following statements about pioneers and followers is false?
A. A pioneer is the first to market with a new product idea.
B. On average, pioneers are usually more profitable than followers.
C. Second movers typically have a strong customer-focus.
D. Second movers that respond quickly build market share in the market growth stage.
E. None of these choices is false
Answer:
When the economy is sluggish, final consumers have less money to buy their favorite
computer gadgets, and this causes touch-screen manufacturers to sell less product to
computer makers like Apple. This illustrates the concept of:
A. "Product" as potential customer satisfaction.
B. derived demand.
C. brand non-recognition.
D. brand rejection.
E. unsought products.
Answer:
When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS
drugstore. What is his level of involvement in the purchase decision for shampoo?
A. Extensive
B. Limited
C. Moderate
D. Modest
E. Routine
Answer:
Differentiation of a firm's marketing mix:
A. Means the firm's marketing mix is hard to distinguish from a competitor.
B. May provide the firm with a competitive advantage in the marketplace.
C. Makes it harder for consumers to notice if there is a consistent theme across all
elements of the marketing mix.
D. Is usually not necessary in order for the firm to succeed.
Answer:
