A good marketing manager for a retailer knows that:
A. economic needs are more important than emotional needs in choosing a store.
B. shopping atmosphere has little comparative importance.
C. consumers only go to stores that offer the lowest possible prices.
D. individual consumers have different economic and emotional needs.
E. All of these alternatives are true.
Answer:
A product which becomes part of a buyer’s final product, and still requires more
processing is called:
A. a supply.
B. a component material.
C. a component part.
D. a raw material.
E. an installation.
Answer:
Which of the following statements about branding is TRUE?
A. Customers are willing to buy by brand only when it assures “top quality.”
B. Branding provides product identification for sellers but usually is not important to
consumers.
C. What brand is familiar often varies from one country to another.
D. Achieving brand familiarity is easy.
E. None of these statements about branding is TRUE.
Answer:
Use the following information to answer question that refer to the Jewel Craft case.
Jewel Craft, Inc. is a leading producer in the United States’ women’s costume jewelry
and accessories market. Its brands are well known and are sold by department stores
and better women’s stores. Several stores in a city may carry Jewel Craft’s brands
because most of Jewel Craft’s customers will not consider any other brand.
Jewel Craft’s sales force calls on one wholesaler in each state. Gemco, Inc., of Boston,
Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells
women’s accessories (noncompeting lines) for several manufacturers like Jewel Craft.
Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight
charges to their warehouses. Jewel Craft’s policy of using one wholesaler per state
comes from its desire to control its distribution. Jewel Craft uses national magazine
advertising and also supports a cooperative ad program with retailers.
Jewel Craft’s prices allow for a 40 percent retail markup-an attractive percent when one
considers that Jewel Craft’s products require little in-store selling because of their
well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding
to watches under the Jewel Craft name. It was argued that although national watch sales
have leveled off, Jewel Craft could enjoy growing sales for several years because of the
fine reputation the company has achieved. If watches are added, Jewel Craft will use its
present policies regarding distribution, pricing, and advertising. Further, it will offer the
wholesalers and retailers an attractive “package” deal as an incentive to carry Jewel
Craft watches. Intermediaries will be required to carry the watches if they wish to
handle the jewelry and accessories.
If Jewel Craft adds the watch line, which federal law might be most directly violated if
it carries out its plan to require intermediaries to handle BOTH the watches and the
jewelry?
A. Robinson-Patman Act
B. Clayton Act
C. Sherman Act
D. Wheeler-Lea Amendment
E. Magnuson-Moss Act
Answer:
Edward Seaton owns a firm that manufactures custom-made carpets. He has a regular
sales force to call on smaller customers and an elite force to call on larger accounts. The
elite sales force is called:
A. customer service reps.
B. major accounts sales force.
C. technical specialists.
D. supporting salespeople.
Answer:
Target marketers who are ‘segmenters”:
A. increase the size of their target markets by combining two or more segments.
B. use one marketing mix to appeal to multiple submarkets, even though the submarkets
have some distinct differences.
C. believe that one marketing mix works well enough with multiple submarkets, even
though the target groups have some distinct differences.
D. use one single marketing mix to appeal to an individual market segment and do not
attempt to combine or merge segments together.
E. are called mass marketers.
Answer:
Which of the following is NOT a trend affecting marketing strategy planning in the area
of Sales Promotion?
A. database-directed promotion
B. more event sponsorships
C. fewer customer loyalty programs
D. more product placement
E. point-of-purchase promotion
Answer:
When a customer orders a book at Amazon.com, the online retailer recommends related
books that have been purchased by other customers who bought that book. Amazon is
using a(n):
A. aggregating approach.
B. CRM database.
C. clustering approach.
D. disaggregating approach.
E. generic market.
Answer:
Brand recognition, brand preference, and brand insistence are various levels of _____.
A. brand rejection
B. branding
C. brand familiarity
D. brand equity
E. brand marks
Answer:
Which of the following sales promotion activities is aimed primarily at final users of a
product?
A. Sales contests
B. Meetings
C. Coupons
D. Merchandising aids
E. Training materials
Answer:
Producers do cooperative advertising with retailers because:
A. media rate structures give national firms lower rates than local firms.
B. the FTC requires it.
C. retailers create better ads than producers.
D. retailers are more likely to follow through when they are paying a share of the cost.
Answer:
_____ is a change in a person’s thought processes caused by prior experience.
A. Selective retention
B. Processing
C. Wanting
D. Learning
E. Perception
Answer:
Which of the following is not likely to be an ethical concern raised by direct-response
methods?
A. Harvesting trees to make paper for direct-response junk mail.
B. Getting direct-promotion telephone solicitations at any time.
C. Using a direct-response database that includes personal information.
D. Sending out weekly specials via an e-mail newsletter on a request only basis.
E. Coping with the constant flow of spam in e-mail boxes.
Answer:
A consumer who purchases a new computer but encounters frustration with set up and
technical support may experience: ____.
A. limited problem solving
B. extensive problem solving
C. dissonance
D. evaluation
E. an information search
Answer:
When marketers select criteria to help screen for new market opportunities, they should
include quantitative components like:
A. what kind of business the firm wants to be in.
B. what resources the firm should build upon.
C. what weaknesses need to be avoided.
D. what is an acceptable return on investment (ROI).
E. what expertise the firm possesses.
Answer:
A report on a seller’s website that describes how one of its customers solved a specific
problem by using the seller’s products is called a(n):
A. white paper.
B. outsource.
C. executive summary.
D. case study.
E. mission statement.
Answer:
A local copying service is buying a new kind of high speed color copier.
A. There will probably be more buying influences for the paper for the copier than for
the copier.
B. The copier is likely to be purchased with a new-task buying process.
C. The copier will be depreciated as an expense item.
D. The copier is a new unsought product.
E. None of these alternatives is correct.
Answer:
Advertising objectives should be:
A. more specific than personal selling objectives.
B. decided by the creative experts who work with advertising agencies.
C. quite general to allow for creativity.
D. set by the advertising manager-not the marketing manager.
E. determined by the kind of advertising that is required.
Answer:
In a generic market,
A. diverse types of products may compete for customers.
B. customers have broadly similar needs.
C. there may be many ways to satisfy customers’ needs.
D. sellers may compete in different product-markets.
E. All of these are correct for a generic market.
Answer:
Better performance of our market-directed MACRO-marketing system may require:
A. newer and tougher laws-because the present laws don’t do enough to protect
competing firms from each other.
B. more consumer responsibility.
C. less emphasis on consumer privacy.
D. less business responsibility because consumers already determine whether a firm
will succeed or fail.
E. None of these alternatives is correct.
Answer:
Marketing strategy decisions concerning Promotion include decisions about
A. packaging and branding.
B. the kinds of intermediaries to use.
C. training for salespeople.
D. transporting and storing.
E. discounts and allowances.
Answer:
Wujin Chu, marketing manager for Innovative Electronics Products, reviews a S.W.O.T.
analysis to help him evaluate four new product ideas his company is currently
considering. Chu is operating in the ____ step of the new-product development process.
A. idea evaluation
B. development
C. commercialization
D. screening
E. idea generation
Answer:
Saying that a good market segment should be “heterogeneous between” means:
A. That the consumers in a market segment should be as similar as possible with respect
to their likely responses to marketing mix variables and their segmenting dimensions.
B. That the consumers in a market segment should be as different as possible with
respect to their likely responses to marketing mix variables and their segmenting
dimensions.
C. That the consumers in different segments should be as similar as possible with
respect to their likely responses to marketing mix variables and their segmenting
dimensions.
D. That the consumers in different segments should be as different as possible with
respect to their likely responses to marketing mix variables and their segmenting
dimensions.
E. That the segmenting dimensions should be useful for identifying different customers
and deciding on marketing mix variables.
Answer:
Jazzy Tile Co. segmented its broad product-market and decided to aim at two different
segments, offering each segment a different marketing mix. Jazzy Tile Co. is following
the ______________ approach.
A. mass marketing
B. multiple target market
C. combined target market
D. single target market
E. None of these approaches is correct.
Answer:
_____ refers to putting marketing plans into operation.
A. Delivery
B. Implementation
C. Operational planning
D. Strategy planning
E. Control
Answer:
When developing a marketing plan for a new product that is about to enter the market
introduction stage of its product life cycle, a marketing manager should:
A. plan to change the marketing strategy every six months.
B. choose the best possible marketing strategy and stay with it throughout its product
life cycle.
C. plan to sell the product until its whole life cycle is over.
D. plan to change the marketing strategy as the product moves through its life cycle.
E. change the marketing strategy only when the market environment changes.
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.
In the Sure Foot case, the nature of competition in the hiking shoe market is:
A. monopolistic competition.
B. monopoly.
C. oligopoly.
D. pure competition.
E. None of these is a good answer.
Answer:
The idea that retailers will start to sell a new product that offers a profit margin higher
than what they achieve on their traditional product line is consistent with the
A. marketing concept.
B. operating philosophy of most limited-line retailers.
C. wheel of retailing concept.
D. scrambled merchandising concept.
E. none of these is a good answer.
Answer:
Which of the following statements about S.W.O.T. analysis is TRUE?
A. It is a useful aid for identifying relevant screening criteria and for zeroing in on a
feasible strategy.
B. S.W.O.T. is simply an abbreviation for the first letters of the words: strengths,
weaknesses, opportunities, and threats.
C. It identifies and lists the firm’s strengths and weaknesses and its opportunities and
threats.
D. It helps managers focus on a strategy that takes advantage of the firm’s strengths and
opportunities while avoiding its weaknesses and threats to its success.
E. All of these statements about S.W.O.T. analysis are TRUE.
Answer:
The development of new types of retailers can be best explained by applying:
A. the rule of franchising.
B. target marketing and product life cycle concepts.
C. the corporate chain hypothesis.
D. the wheel of retailing theory.
E. the law of retail gravitation.
Answer:
Cash discount terms of 2/10, net 60 on an invoice would-in effect-amount to borrowing
at an annual interest rate of about ________ percent if the buyer did not pay the invoice
for 60 days.
A. 22
B. 72
C. 14
D. 18
E. 36
Answer: