Expense items which have had more processing than raw materials and become part of
a finished product are component parts and materials.
Answer:
Marketing managers for Mountain Dew used a positioning statement to help focus
efforts and gain market share in a competitive environment.
Answer:
F.O.B. ‘shipping point” pricing simplifies the seller’s pricing, but tends to reduce the
size of the seller’s market.
Answer:
An expectation is a future outcome or event that a person anticipates will happen.
Answer:
Price fixing is illegal under all circumstances in the United States.
Answer:
During the market maturity stage of the product life cycle, the basic promotion
objective is persuading.
Answer:
Pushing (a product through a channel) means using normal promotion effort to help sell
the whole marketing mix to intermediaries.
Answer:
Average-cost pricing guarantees that the firm will earn enough to at least cover its costs.
Answer:
A “breakthrough opportunity” is an opportunity that helps innovators develop
long-term, hard-to-copy marketing strategies that will be very profitable.
Answer:
Most changes in the cultural and social environment come slowly.
Answer:
For many physical goods, firms spend half or more of their total marketing dollars on
physical distribution activities.
Answer:
New-product development usually fits into the old routines of a firm, so it is not
necessary for top management to support new-product development in any special way.
Answer:
Most firms operate in monopolistic competition instead of pure competition.
Answer:
“Continuous improvement” means a commitment to constantly make things better-one
step at a time.
Answer:
A ‘supply chain” is the same thing as a “channel of distribution.”
Answer:
A marketing manager should make sure the firm’s brand names do not become so
familiar that they become common descriptive terms for certain kinds of products.
Answer:
Of the four types of opportunities firms can pursue, diversification is the easiest to
evaluate and involves the least risk.
Answer:
Even if a manager’s estimate of a demand curve is not exact, there is usually a profitable
range around the price that would maximize profit.
Answer:
Heavy, bulky goods requiring long distance movement are usually carried by railroads.
Answer:
A S.W.O.T. analysis is one way to zero in on a marketing strategy that is well-suited to
the firm.
Answer:
E-commerce refers to exchanges between individuals, but not exchanges between
organizations.
Answer:
A product assortment is the set of all product lines and individual products that a firm
sells.
Answer:
Department stores are larger stores that are organized into many separate departments
and offer many product lines.
Answer:
The main problem with advertising is that it costs so much-on average about one third
of sales dollars for U.S. companies.
Answer:
Prestige pricing involves setting a rather high price because the product has a normal
down-sloping demand curve.
Answer:
Channels used to retrieve products that customers no longer want are called collection
channels.
Answer:
Reinforcement of a response decreases the likelihood of the same response the next
time the drive occurs.
Answer:
Customer-initiated interactive communication makes it easy for a consumer to get as
much information as desired.
Answer:
Team selling occurs when different people work together on a specific account.
Answer:
A marketing manager can choose from only two promotion methods-personal selling
and mass selling.
Answer:
Some retailers feel that their potential customers find certain prices appealing, but
between these prices the customers see prices as roughly the same-and thus price cuts
within these ranges will not increase the quantity sold (i.e., the demand curve is vertical
within these ‘same price” ranges). These retailers would probably use ______________
if they want to maximize profit.
A. average-cost pricing
B. bait pricing
C. leader pricing
D. prestige pricing
E. psychological pricing
Answer:
Consumers’ attitudes can be learned from:
A. exposure to the attitudes of others.
B. promotion which is directed toward them.
C. previous experiences.
D. family and friends.
E. all of these could be true.
Answer:
From the macro-marketing perspective, the spatial separation that exists between
military equipment manufacturers and the people who use the equipment overseas is
directly addressed through this marketing function:
A. financing
B. transporting
C. risk taking
D. market information
E. storing
Answer:
A producer with only one product has total fixed costs of $15,000 per month. In
addition, it cost the producer $100 in variable costs to produce each unit of his product
(raw materials and direct labor cost). The producer charges his wholesalers $125 per
unit. How many units of the product does the producer have to sell each month in order
to break even?
A. 450 units
B. 500 units
C. 550 units
D. 600 units
E. 650 units
Answer:
Which of the following costs do not change with an increase in output?
A. Total variable cost
B. Total fixed cost
C. Total cost
D. Average total cost per unit
E. Average fixed cost per unit
Answer:
A producer with only one product has total fixed costs of $15,000 per month. In
addition, it cost the producer $100 in variable costs to produce each unit of his product
(raw materials and direct labor cost). The producer charges his wholesalers $125 per
unit. What is the sales amount to break even?
A. $70,000
B. $75,000
C. $80,000
D. $85,000
E. $90,000
Answer:
C.D. Jamison Co. is a wholesaler in Norfolk, Virginia. It carries a wide variety of
merchandise from various producers-everything from bar soap and shampoo to cameras
and stereo equipment-that is sold in retail stores on U.S. Navy bases and Navy ships.
C.D. Jamison owns the products it resells and provides all the wholesaling functions.
C.D. Jamison is a(n):
A. manufacturer sales branch.
B. agent wholesaler.
C. single-line wholesaler.
D. specialty wholesaler.
E. general merchandise wholesaler.
Answer:
Choosing an indirect channel probably will be better than a direct channel if a producer
wants to:
A. provide special technical service.
B. make it easier to do marketing research.
C. be more sensitive to coming changes in customer needs and attitudes.
D. obtain a very aggressive selling effort.
E. adjust large discrepancies of quantity and assortment.
Answer:
The best way to ship a large shipment of coal (which is a heavy and bulky good) from
Pennsylvania to California at a relatively low cost would be to use:
A. Rail
B. Water
C. Truck
D. Air
E. Pipeline
Answer:
Market segmentation:
A. means the same thing as marketing strategy planning.
B. assumes that most submarkets can be satisfied by the same marketing mix.
C. is the same thing as positioning.
D. tries to identify homogeneous submarkets within a product-market.
E. None of these choices regarding market segmentation is true.
Answer:
Modern one-story warehouses typically do NOT have:
A. power-operated lift trucks.
B. electric hoists.
C. battery-operated motor scooters.
D. roller-skating order pickers.
E. freight elevators.
Answer:
The _____ refers to how much one country’s money is worth in another country’s
money.
A. monetary value
B. exchange rate
C. dollar value
D. net worth
E. purchasing power
Answer:
Organizational buyers:
A. tend to rely almost totally on salespeople as their source of information.
B. prefer formal procedures for rating vendors over informal approaches like vendor
analysis.
C. are likely to do little search for additional information if the purchase is unimportant.
D. tend to be more emotional than final consumers-because their jobs are at risk if a
problem arises.
E. None of these alternatives is correct.
Answer:
A complete product-market definition includes all the following descriptions except:
A. what is the product type.
B. who are the firm’s competitors.
C. what customers’ needs will be satisfied.
D. which customer types will desire the product.
E. in which geographic region will the firm compete for customers.
Answer:
If geographic location and other demographic characteristics are used as target market
dimensions, which potential strategy decision area is mostly likely to be affected?
A. Promotion-what potential customers need
B. Target markets-size
C. Price-what customers might be willing to pay
D. Product line assortment
E. Product-which features to include
Answer:
Tammy works in transportation for a company that manufactures tractors and other
farm equipment in China for the U.S. market. Cost is her primary concern in getting
products to farm states in the U.S. Midwest. Which mode(s) of transportation would
you suggest?
A. Water then truck.
B. Air then rail.
C. Air then truck.
D. Air only.
E. Water then rail.
Answer:
Wilbur Donald has had good experience using Crest toothpaste and he is in the habit of
buying it. His level of brand familiarity for Crest is:
A. brand insistence.
B. brand preference.
C. brand desire.
D. brand recognition.
E. brand identity.
Answer:
Which of the following is NOT a separate stage of the new-product development
process?
A. Idea generation.
B. Screening.
C. Idea evaluation.
D. Marketing research.
E. Commercialization.
Answer:
Whether a macro-marketing system is fair or effective depends on
A. goods and services being evenly distributed across the population.
B. discrepancies of quantity.
C. the emphasis given to military spending.
D. the marketing orientation of individual firms.
E. the objectives of the society.
Answer:
Which of the following is an example of an operational decision?
A. Focus promotion on the economy of the product.
B. Make the product available in every possible retail outlet.
C. Have a salesperson visit the manager of a new hardware store that will open next
week.
D. Set a price that is no higher than competitors’ prices.
E. None of these is an example of an operational decision.
Answer:
Which of the following is NOT a current trend that is affecting marketing strategy
planning?
A. growth of JIT and EDI
B. more international market development
C. less attention to distribution service
D. more attention to quality
E. faster new-product development
Answer:
Seniors and baby boomers are among the fastest-growing demographic groups on
Facebook. Marketers need to study such trends because:
A. people in this demographic are known for being techno-savvy.
B. baby boomers typically have little money to spend.
C. very large numbers of people make up this demographic.
D. online ads are most effective when seen by people of all ages.
E. seniors have played a major role in the social media revolution.
Answer:
Which of the following wholesalers do NOT carry stocks for their customers?
A. Specialty wholesalers
B. Drop-shippers
C. Cash-and-carry wholesalers
D. Single-line wholesalers
E. Catalog wholesalers
Answer:
An instant noodles brand, upon the release of its product, attracted customers by
offering a 50 percent discount on the purchase of two family packs. Once the brand had
gained attention, this discount was removed and the product was priced similar to the
competing brands in the market. This pricing strategy is an example of _____.
A. introductory price dealing
B. F.O.B. pricing
C. skimming price policy
D. penetration pricing policy
E. negotiable price dealing
Answer:
Transporting by water:
A. is the fastest transporting mode.
B. is the least expensive transporting mode for heavy freight.
C. is only important for international transportation.
D. is especially useful for lightweight goods.
E. None of these alternatives is correct.
Answer:
A discount that is offered to encourage buyers to stock earlier than present demand
requires is:
A. a cash discount.
B. a seasonal discount.
C. a quantity discount.
D. “push money.”
E. a credit discount.
Answer:
Bulk-breaking
A. means putting together a variety of products to give a target market what it wants.
B. involves collecting products from many small producers.
C. involves dividing larger quantities into smaller quantities as products get closer to
the final market.
D. means separating products into grades and qualities desired by different target
markets.
E. is most important with specialized producers of professional services.
Answer:
Which of the following statements about just-in-time delivery is FALSE?
A. Just-in-time shifts greater responsibility for physical distribution backward in the
channel.
B. Just-in-time reduces storing and handling costs for everyone in the channel.
C. Just-in-time increases the coordination needed among channel members.
D. Just-in-time reduces storing and handling costs for business customers.
E. None of these statements about JIT delivery is FALSE.
Answer:
Rising costs and inflation are part of the uncontrollable ______________ environment.
A. technological
B. economic
C. competitive
D. legal
E. cultural and social
Answer:
Typically, the _____ is responsible for building good distribution channels and
implementing “place” policies.
A. public relations manager
B. sales manager
C. advertising manager
D. human resources manager
E. recruitment manager
Answer:
_____ are bought often, routinely, and without much thought.
A. New unsought products
B. Staples
C. Specialty products
D. Business products
E. Shopping products
Answer: