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The marketing strategies for the two shoe retailers Payless and Zappos are very
different but both are successful.
Many of the people affected by a new strategy may not be under the control of the
marketing manager.
An effective macro-marketing system matches heterogeneous supply with
heterogeneous demand.
Poor customer service is likely to reduce a firm's customer equity.
Production, not marketing, should determine what products are to be made.
An individual product is a particular product within a product line.
Kikkoman is a good example of a company that took advantage of both production
capacity and production flexibility to introduce a new line of specialized condiments to
appeal to additional market segments.
Cash-and-carry wholesalers are limited-function wholesalers who do not grant credit,
but otherwise operate like service wholesalers.
Macro-marketing emphasizes the activities of individual organizations.
Older people seem to be more open to new products and brands than younger people.
Providing effective customer service is relatively simplebecause it is usually clearer
how to repair a negative experience than it is to provide an initial purchase experience
that is satisfying to the customer.
Single-line stores that used to carry anything they could sell in reasonable volume were
the main retailers in the United States.
A good S.W.O.T. analysis helps a manager focus on a strategy that takes advantages of
the firm's opportunities and strengths while avoiding its weaknesses and threats to its
success.
Pricing objectives need not be explicitly stated.
The right promotion blend depends on what the firm want to accomplishso the objective
must be clearly defined.
Thanks to much publicity, the marketing concept is now practiced by all firms.
Goods that might become separated or damaged during transport can benefit from
containerization in shipping.
A bank (or other institution) that provides debt financing to fund a marketing plan is
usually more willing to take risks than are investors who buy stock.
The two parts of a marketing strategy are an attractive opportunity and a target market.
GNI income measures can give the impression that people in less-developed nations
have less income than they really do.
A consumer interested in making a low involvement purchase is most likely to use
"limited problem solving"rather than one of the other levels of problem solving.
Technology provides new opportunities and new challenges for marketers.
Beliefs may help shape a consumer's attitudes but don't necessarily involve any liking
or disliking.
Not all societies need an economic system.
A manager could be fined for violating the antimonopoly laws, but he or she could not
be sent to jail.
Reference group influence is likely to be greater for products which will not be seen by
other individuals.
Nikeid.com, where customers can design a shoe to their own preferences, is a good
example of mass customization.
"Merchant wholesalers"who take title to the products they sellare the most common
type of wholesaling establishment.
Buying responsibility and purchase influence between husband and wife vary
greatlydepending on the product and the specific family.
During the market maturity stage of the product life cycle, the basic promotion
objective is persuading.
In the adoption process, the confirmation step usually precedes the decision step.
According to learning theory, a cue is likely to result in a consumer response only if
there is a drive to satisfy.
Administered and contractual channel systems are vertical marketing systems which
depend on informal agreementsor contracts between channel membersto cooperate.
As compared to larger competitors, smaller firms benefit from lower unit costs which
they achieve with lower sales volumes.
Direct-response promotion targets specific individuals who respond directly.
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.
A good marketing manager organizing a new sales force knows that:
A. new sales reps should start out on the major accounts sales force so they can learn
the business from the bottom up.
B. the most profitable approach is to start with a small number of salespeople, and then
quickly add more if they can't do the job.
C. it may be necessary to rely on team selling and have more than one rep call on a
single customer if different skills are needed.
D. a major accounts sales force is used to sell to small retailers who are not covered by
wholesalers in the channel.
E. None of these alternatives is correct.
______________ means selling a product through all responsible and suitable
wholesalers or retailers who will stock or sell the product.
A. Selective distribution
B. Multichannel distribution
C. Exclusive distribution
D. Intensive distribution
E. Aggressive distribution
Which of the following laws focuses specifically on price discrimination?
A. Robinson-Patman Act
B. Magnuson-Moss Act
C. Sherman Act
D. Wheeler-Lea Act
E. Federal Trade Commission Act
A good share of total U.S. wholesale sales are made by manufacturers' sales branches
because:
A. they are well-managed.
B. branches are usually placed in the best market areas.
C. costs are lower because some marketing functions are eliminated.
D. about half of all wholesale businesses are owned by manufacturers.
E. All of these are good reasons.
Baby boomers were born:
A. between 1978 and 1994.
B. since 1994.
C. between 1965 and 1997.
D. between 1945 and1964.
E. before 1945.
Because of increased competition during the ___________ era, firms put new effort
into winning customers.
A. simple trade
B. sales
C. production
D. marketing company
E. marketing department
Which of the following is NOT a key dimension of buyer-seller relationships in
business markets?
A. Competition.
B. Information sharing.
C. Relationship-specific adaptations.
D. Operational linkages.
E. Legal bonds.
American teenagers
A. are not interested in expensive clothes.
B. are not involved in shopping.
C. currently spend $200 billion a year.
D. develop recreation and education needs that are easy on the family budget.
E. do not influence family purchases.
Which of the following statements about mass customization is true?
A. Mass customization means that a firm is targeting the mass market but that it tries to
customize the design of a product so it is different from what a competitor offers.
B. Mass customization requires a firm to give up segmentation thinking to pursue
larger, more heterogeneous markets.
C. The mass-customization approach applies only to services, and they often must be
custom produced anyway.
D. ChemStation's industrial detergents, which a business customer can order to fit any
special cleaning need, is a good example of mass customization.
E. None of these is true.
In the short run, a marketing manager usually cannot control:
A. the competitive environment.
B. the cultural environment.
C. the legal environment.
D. the economic environment.
E. Any of these environments are uncontrollable in the short run.
Consumer product classes are based on
A. the level of derived demand.
B. how consumers think about products.
C. what types of business products were used to produce them.
D. how consumers will use the products.
E. how new and innovative the products are.
Which of the following is NOT one of the degrees of market exposure?
A. Selective distribution
B. Multichannel distribution
C. Intensive distribution
D. Exclusive distribution
E. None of these, i.e. all are degrees of market exposure.
According to the text, missionary salespeople are sometimes called as
A. customer service reps.
B. technical specialists.
C. detailers.
D. order takers.
E. account managers.
Which of the following statements about operational linkages is FALSE?
A. Just-in-time is an example of an operational linkage.
B. Operational linkages are direct ties between the internal operations of the buyer and
seller firms.
C. Operational linkages involve only occasional coordination of activities between
buying and selling firms.
D. None of these statements about operational linkages is FALSE.
Between 2005 and 2025, the largest projected increase in the U.S. population is
projected to occur in the:
A. 50-59 age group.
B. 65 or over age group.
C. 10-19 age group.
D. 0-9 age group.
E. 40-49 age group.
Physical distribution
A. should not require trade-offs for managers.
B. means that consumers get products for low prices.
C. includes transportation of products, but logistics does not.
D. is invisible to most consumers in the United States.
E. All of these alternatives are correct.
ConnectSys is a California-based manufacturer of computer networking equipment for
home and small business users. When people call the company's toll-free customer
support telephone number, they are connected to a customer service representative in
India. ConnectSys uses this arrangement because the wages for customer service
representatives are lower in India than in the United States. This is an example of:
A. A virtual corporation.
B. Exporting telecommunications.
C. An indirect distribution channel.
D. A task transfer service.
E. None of these.
Company objectives
A. should be set within the framework of marketing objectives.
B. are made redundant by mission statements.
C. should always be overly ambitious.
D. should only be revised every five years.
E. guide managers as they search for and evaluate opportunities.
Close buyer-seller relationships may not make sense because:
A. Flexibility may be reduced for the firms involved.
B. Not all purchases are important enough to the buyer to justify a close relationship
with a supplier.
C. Some suppliers do not want to deal with buyers who place small orders.
D. There are situations when the buyer could get reduced prices by letting suppliers
compete for the buyer's business.
E. All of these are correct.
Which of the following is NOT true about the supply chain for Ford Motor Company?
A. The supply chain includes the Ford dealers that sell its cars to consumers.
B. The supply chain does not include production plants where Ford cars are built.
C. The supply chain includes a tire supplier to Ford's production plants.
D. The supply chain includes a company that sells rubber to Ford's tire supplier.
E. The supply chain includes trucks that deliver cars to Ford dealers.
ABC Technologies manufactures computer accessories, such as modems and network
cards. Even though the company has several purchasing managers, the company
president has final authority on all purchases over $500, including the selection of the
supplier. In the typical buying center in this company, the company president would
have the primary role of:
A. User.
B. Buyer.
C. Influencer.
D. Decider.
E. Gatekeeper.
Regarding PRODUCT LIFE CYCLES and PROMOTION:
A. During market introduction, the basic promotion objective is to remind.
B. In sales decline, the amount spent on promotion usually increases as firms use
reminder promotion to increase demand.
C. Persuading becomes important in the market growth stage.
D. In market maturity, more competitors enter the market and the promotion emphasis
must now shift to building selective demand for the firm's own brand.
E. None of these is a good answer.
Which of the following pricing approaches should be used by a profit-oriented retailer
if its demand curve is down-sloping to the right for a whilebut then actually bends back
to the left at lower prices?
A. Psychological pricing
B. Prestige pricing
C. Average-cost pricing
D. Bait pricing
E. Penetration pricing
Which of the following is one of the three basic ideas in the "marketing concept?"
A. Resource efficiency.
B. Customer satisfaction.
C. Obtain economies of scale.
D. Maximize sales.
E. The president has a marketing background.
When looking at NAICS codes:
A. The fewer numbers in the code, the more general the industry classification is.
B. The more numbers in the code, the more general the industry classification is.
C. The fewer numbers in the code, the more specific the industry classification is.
D. The United States is the only country to collect data that groups firms in similar lines
of business.
E. None of these alternatives is correct.
Which of the following is a part of the functional account category of a factory?
A. Salaries
B. Supplies
C. Raw materials
D. Advertising
E. Maintenance
Direct-response promotion usually relies on a(n) _____ database to target specific
prospects.
A. customer relationship management
B. sales force management
C. entity-attribute-value model
D. enterprise relationship management
E. multidimensional preference
Economists' economic-buyer theory assumes that:
A. income data are very useful for predicting consumer behavior.
B. buyers logically compare choices in order to maximize their satisfaction.
C. consumers should purchase only low-priced products.
D. buyers focus primarily on price.
E. None of these is correct.
Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about
how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI
sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent
markup and most of its 'sport shop" retailer customers, like Robinson's Sporting Goods,
use a 33 percent markup to arrive at the price they charge final consumers. However,
one fast growing retail chain, Sports Depot, only uses a 20 percent markup for
basketballs, even though it pays Wholesale Supply the same price as other retailers.
Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them
at costto draw customers into its stores and stimulate sales of its pricey basketball
shoes.
Sports Depot is also using other pricing approaches that are different from the sports
shops that usually handle SPI products. For example, Sports Depot prices all of its
baseball gloves at $20, $40, or $60with no prices in between. There are three big bins -
one for each price point.
Todd is also curious about how Sports Depot's new strategy to increase sales of tennis
balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit
groups who resell the balls to raise money. For example, a service organization at a
local college bought 2,000 tennis balls printed with the college logo. Sports Depot
charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print
the logo. The service group plans to resell the tennis balls for $2.50 each and contribute
the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is
considering adding tennis racquets to the lines it produces. This would require a
$500,000 addition to its factory as well as the purchase of new equipment that costs
$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd
thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow
most retailers to add their normal markup and make a profit. However, if Sports Depot
sells the racquet at a lower than normal price other retailers might decide to carry it.
What is the final selling price Sports Depot charges for a SPI basketball?
A. $10.00
B. $12.00
C. $12.50
D. $15.00
E. $18.00
