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Personal selling and advertising are both forms of sales promotion.
Motivation, perception, learning, attitudes, trust, and lifestyle are psychological
variables which affect consumer buying.
In 2010, 50 percent of U.S. families received less than $49,445 in income.
Planning, implementation, and control are basic jobs of all managers.
The risks and costs of failure in new-product development are minor when one
considers the likely rewards.
When it comes to choosing among different types of opportunities, most firms tend to
be production-oriented and usually think first of diversification.
A target return pricing objective seeks to obtain a specific level of profitoften stated as a
percentage of sales or return on investment.
Focus groups are a way to gather primary data quickly, but at a relatively high cost.
Economic needs include such things as self-respect, accomplishment, fun, freedom and
relaxation.
Manufacturers' agents don't cost the producer anything until something sells.
Many business products are sold direct, but hardly any services are.
Manufacturer brands are always advertised and distributed more widely than dealer
brands.
It's a common belief that half of the money spent on advertising and sales promotion is
wasted.
Compared to some countries in Latin America, the rate of inflation in the U.S. is low.
Earning a profit probably should be one of the objectives of a firm, but it should not be
the only one.
Smaller producers always have a great advantage in competing with larger producers
because of their flexibility.
After making a purchase, buyers often wonder if they made the right choice. The
resulting tension is called dissonance.
It is illegal for a firm to use a package that cannot be recycled.
Under the Robinson-Patman Act, meeting a competitor's price is not permitted as a
defense in price discrimination cases.
S.W.O.T. analysis is based on the idea that one of the best ways to develop a strategy is
to identify and copy the marketing 'strategies, weapons, outlook, and tactics" of the
firm's most effective competitor.
Many U.S. automakers have failed because they were not marketing oriented.
A cash flow statement is a financial report that forecasts how much cash will be
available after paying expenses.
Marketing specialists such as intermediaries and collaborators hinder the exchange
process between producers and consumers.
A firm can lose all rights to a brand name if the name becomes a common descriptive
term for that kind of product.
The three basic ideas included in the definition of the marketing concept are: customer
satisfaction, a total company effort, and sales as an objective.
When a firm's domestic market is prosperous, marketing managers are less likely to
pursue opportunities in international markets.
Flexible-price policies are most common in the channels, in direct sales to business
customers, and for expensive shopping products because sales reps may need to make
adjustments for market conditions.
Gen X is smaller in numbers as compared to the boomers that came before.
The sale of candy from a vending machine at a bus station is not considered retailing
since no store is involved.
Coordinating the linkages between different functional areas is likely to be easier when
a new strategy involves only a minor modification to a plan that the firm is already
implementing.
A consumer who went to shop at a 'supercenter" would probably expect not only to be
able to buy food and health care products, but also to leave dry-cleaning or have shoes
repaired.
Small companies that have limited working capital or uncertain markets often prefer to
use straight salary compensation plans.
Walgreens Drugstores buys a bottle of shampoo from a wholesaler for $3.25 and then
places it on a shelf with a price tag of $4.64. What is Walgreens' markup on selling
price (expressed as a percent)?
A. 20 percent
B. 26 percent
C. 30 percent
D. 43 percent
E. 48 percent
To improve its profits, Delta Tool Corp. has redesigned its entire line of rechargeable
power drills--adding several new or improved features and three new models.
Apparently, Delta Tool is pursuing a ______________ opportunity.
A. combiner
B. market development
C. product development
D. diversification
E. market penetration
_____ is a type of innovative product that requires customers adopting the innovation to
significantly change their behavior.
A. Fad innovation
B. Dynamically continuous innovation
C. Discontinuous innovation
D. Continuous innovation
E. Behavior-change innovation
As a product moves through its product life cycle:
A. industry profits may decrease while industry sales increase.
B. the nature of competition moves toward pure competition or oligopoly.
C. entirely different target markets may be aimed at.
D. customers' attitudes and needs may change.
E. All of these alternatives are true.
A good place for a marketing analyst to START looking for published statistical data is
the:
A. Encyclopedia of Associations.
B. Congressional Record.
C. Wall Street Journal.
D. Statistical Abstract of the United States.
E. New York Times research files.
Psychographics or life-style analysis analyzes an individual's:
A. opinions.
B. demographics.
C. activities.
D. interests.
E. All of these alternatives are correct.
Firms develop _____ to promote fair and honest dealings with all stakeholders inside
and outside of the organization.
A. marketing plans
B. marketing departments
C. codes of ethics
D. intermediaries
E. a marketing orientation
_____ refers to putting marketing plans into operation.
A. Delivery
B. Implementation
C. Operational planning
D. Strategy planning
E. Control
____ involves tailoring the principles of mass production to meet the unique needs of
individual customers.
A. Personal selling
B. Mass customization
C. Traditional manufacturing
D. Standardization
E. Outsourcing
After working for 18 hours, Katrina arrived home exhausted and wanted to go straight
to sleep. Katrina's need to sleep is a ______________ need.
A. psychological
B. social
C. physiological
D. behavioral
E. emotional
A producer of home burglar alarm devices decides to start manufacturing portable video
cameras for use in industrial security situations. This is an example of
A. market development.
B. diversification.
C. product development.
D. market penetration.
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
A focus on a target return or return on investment are characteristic of _____ pricing
objectives.
A. profit-oriented
B. sales-oriented
C. status-quo oriented
D. purchase oriented
E. market-share oriented
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores also and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
Which of the following AIDA promotion objectives is best achieved by coupons for
Cherry Walrus?
A. attention
B. interest
C. desire
D. action
Studying a consumer's psychographic characteristics will help marketers understand the
target audience's hobbies, politics, and ______________________________.
A. geographic area
B. age bracket
C. family size
D. income level
E. recreational interests
Which of the following is NOT true about how online retailers and big data?
A. Online retailers personalize customer shopping experiences with big data.
B. Online retailers can track what consumers do on their website.
C. Online retailers can tell if a consumer watches a video on its site.
D. It is illegal for online retailers to monitor what information customers do on a
competitor's site.
E. Online retailers can pull information from a customer's Facebook page.
For six months Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing
manufacturer of organic foods. After graduating college, she worked for four years as a
sales rep for a nationally known food company. But, she jumped at the chance when
SDF contacted her about becoming marketing manager for its breakfast foods division,
which sells dry cereals and a pancake mix.
Kim spent the first few months on the job trying to better understand SDF, its product
line, and marketing strategy. She reviewed the company's past marketing research,
commissioned new research, and talked to both consumers and retailers. Now, the CEO
of the company wants her thoughts on what the company's marketing strategy should be
for the next few years.
Her research indicates that among cereal customers there are at least five segments of
customers who use SDF products.
a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals.
These customers often go out of their way to visit a store with their favorite SDF cereal
and buy only that product at the store.
b) Another segment, the regulars, buys SDF cereals without much thought. For them it
is just part of their routine and, if you ask them why they pick the cereal, they'd say it's
just a habit.
c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They
view all organic cereals as pretty much the same and buy whichever brand seems to
offer the best deal that week.
d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few
years ago the company took a strong stand in a presidential race-and these customers
resented it. Now, they boycott all SDF foods because of that incident.
e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but
who don't have much awareness of particular organic brand names.
In reviewing how SDF currently brands its products, Kim sees that it is using several
different approaches. The Sunny Day Foods brand is used on most products the
company sells. But a few years ago the company brought out an instant organic oatmeal
with the Hot n Healthy name. SDF also makes cereal sold by a health food chain; the
package for that chain uses the store's own name, Nature's Foods, as the brand name for
the cereal.
Which of the following terms best describes the "Sunny Day Foods" brand?
A. Individual brand
B. Licensed brand
C. Dealer brand
D. Family brand
E. Private brand
Many consumers mentally block out marketing messages that do not interest them. This
phenomenon is part of a person's _____.
A. motivation
B. needs
C. perception
D. attitudes
E. learning
Information is obtained on a continuing basis from the same respondents using a:
A. contributor group.
B. consumer panel.
C. responder group.
D. consumer experiment.
E. statistical package.
Which of the following is NOT a consumer product class?
A. Specialty.
B. Unsought.
C. Derived.
D. Shopping.
E. Impulse.
Which of the following is NOT one of the organizational buying processes discussed in
the text?
A. Multiple task buying.
B. Modified rebuy buying.
C. New-task buying.
D. Straight rebuy buying.
E. None of these, i.e., all are buying processes.
Short-run decisions to help implement strategies are best known as
A. actionable items.
B. strategic decisions.
C. marketing plans.
D. operational decisions.
E. dependencies.
Which of the following statements is FALSE in regard to borrowing money?
A. Interest expense on a loan may impact prices and profits.
B. A company with a successful marketing strategy has its own internal source of
fundprofits.
C. Institutions that loan money are usually more willing to take a risk than are investors
who buy stock.
D. The firm may be able to sell stock to its own employees.
E. None of these is false.
Department stores:
A. are large stores which emphasize depth and distinctiveness rather than variety.
B. have declined since the 1970s because of competition from well-run limited-line
stores and mass-merchandisers.
C. are usually weak in customer service.
D. usually emphasize specialty products.
E. All of these alternatives are true for department stores.
The AIDA model consists of four promotion jobs:
A. getting Attention, building Intrigue, arousing Desire, and obtaining Action.
B. becoming Aware, holding Interest, arousing Desire, and providing Assistance.
C. getting Attention, holding Interest, creating Demand, and obtaining Action.
D. getting Attention, holding Interest, arousing Desire, and obtaining Action.
E. becoming Aware, holding Interest, arousing Desire, and obtaining Action.
Which of the 4Ps in the marketing mix is most directly related to the warranty that
comes with a new digital camera?
A. Product
B. Place
C. Promotion
D. Price
A manufacturer might try to defend itself against charges of illegal price discrimination
by claiming that:
A. the price discrimination occurred as a defensive measure to "meet competition in
good faith."
B. the price differentials did not actually injure competition.
C. the price differentials were justified on the basis of cost differences in production
and/or distribution.
D. its products were not of "like grade and quality."
E. Any of these could make price discrimination legal.
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
Regarding transportation modes, which of the following statements is NOT true?
A. The majority of the pipelines in the U.S. are in the Southwest.
B. Airfreight costs about the same as trucks for long distances, not counting the cost of
transporting to and from the airport.
C. Water transportation is the slowest shipping mode.
D. Most cities in the United States are less than 200 miles from a major petroleum
pipeline.
Retailer life cycles (from introduction to maturity) seem to be:
A. getting longer.
B. getting shorter.
C. staying about the same.
D. changing erratically.
E. None of these is a good answer.
Which of the following is NOT one of the consumer product classes discussed in the
text?
A. Unsought products
B. Imitation products
C. Shopping products
D. Convenience products
E. Specialty products
