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Which of the following is TRUE about the micro-macro dilemma?
A. What is good for some producers and consumers may not be good for society as a
whole.
B. Marketing people cannot agree on whether marketing should be viewed as individual
activities or a social process.
C. In a multiproduct company, one product should not be emphasized over another.
D. Most people don't want much freedom of choice.
E. Intermediaries facilitate exchange but they add to the cost of goods.
Answer:
Ideally, the ingredients of a good marketing mix should:
A. flow logically from all the relevant dimensions of a target market.
B. match the ingredients typically used by key competitors.
C. be determined by which ingredients cost the least.
D. not include much advertising because it's expensive.
E. None of these alternatives is correct.
Answer:
If Wendy's decides to test market a hot dog in several stores to determine if it can make
more profit from this menu item than from a "Wendy's single," which market
opportunity is Wendy's pursuing?
A. Diversification
B. Market development
C. Market penetration
D. Product development
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.
It appears that United Tools:
A. is implementing the physical distribution concept.
B. works to provide just-in-time delivery to both of its wholesalers.
C. needs to buy its own fleet of trucks.
D. uses the distribution system with the lowest transportation cost.
E. all of these alternatives are logical.
Answer:
When Acme Tools was found guilty of giving one of its retailers lower prices on goods
of "like grade and quality" without any cost justification, the firm was charged with a
violation of the ___________.
A. Sherman Act
B. Clayton Act
C. Robinson-Patman Act
D. Antimerger Act
E. Wheeler-Lea Amendment
Answer:
Which of the following impersonal sources enable purchasing mangers to easily search
for potential new suppliers?
A. Trade shows
B. Supplier Web sites
C. Consultants and outside experts
D. Salespeople
E. Special publicity features by local news reporters
Answer:
Transportation helps to
A. make products available when they're needed.
B. achieve economies of scale in production.
C. make products available where they're needed.
D. make exchange easier.
E. all of these alternatives are correct.
Answer:
Retailer-sponsored groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts are called:
A. corporate chains
B. voluntary chains
C. cooperative chains
D. franchise operations
E. private chains
Answer:
Which of the following types of retailers has not yet reached market maturity?
A. Supercenters
B. Internet merchants
C. Variety stores
D. Department stores
E. Catalog showrooms
Answer:
A "product" is best described as:
A. a purely physical entity.
B. an image in the mind of the consumer.
C. a need-satisfying offering of a firm.
D. an intangible service.
E. all of the technical aspects of production.
Answer:
Some customers encourage the use of ______________ by paying more attention to
supposed price discounts than to the actual prices (and values).
A. unchanging list prices
B. basic list prices
C. phony list prices
D. fair trade prices
Answer:
Zippo is pursuing _____ opportunities with its Multi-Purpose Lighter that is designed to
light candles, fireplaces, grills, and more.
A. market penetration
B. market development
C. product development
D. diversification
E. channeling
Answer:
A telecommunications company offers its salespeople a traditional straight commission
compensation plan based on a percentage of dollar sales. The company will incur the
highest total personal selling expenses when:
A. total customer service costs are minimized.
B. total marketing costs are at their lowest.
C. total sales revenue is at its highest.
D. total units sold are at their highest.
E. total units returned are at their lowest.
Answer:
_____ are merchant wholesalers that provide all the wholesaling functions.
A. Cash-and-carry wholesalers
B. Service wholesalers
C. Limited-function wholesalers
D. Drop-shippers
E. Catalog wholesalers
Answer:
Air express companies place many small packages into specially designed cylinders
that conform to the interior dimensions of a cargo airplane. This practice protects the
smaller packages and helps to reduce distribution costs. The air express companies are
practicing:
A. containerization.
B. piggybacking.
C. freight forwarding.
D. cylinderization.
E. None of these choices is correct.
Answer:
Which of the following advertising approaches delivers ads to consumers based on the
interactions they exhibit in media such as Facebook, Pinterest, and Twitter?
A. Social targeting
B. Digital targeting
C. Behavioral targeting
D. Pay-per-click
E. Click fraud
Answer:
A producer in Philadelphia uses "zone pricing." It's selling widgets for $150/ton in the
Eastern Zone-which includes Richmond and Baltimore. The actual freight cost from its
plant to Baltimore is $70/ton and from its plant to Richmond is $80/ton. In this
situation:
A. one ton of widgets costs a Baltimore buyer the same as a Richmond buyer.
B. both buyers would pay $300 for one ton of widgets.
C. one ton of widgets delivered to Richmond would cost the buyer $230.
D. one ton of widgets delivered to Baltimore would cost the buyer $220.
E. None of these alternatives is correct.
Answer:
A producer using normal promotion efforts-personal selling, sales promotion, and
advertising-to help sell a whole marketing mix to possible channel members has:
A. a selective distribution policy.
B. a target marketing policy.
C. an intensive distribution policy.
D. a pushing policy.
E. a pulling policy.
Answer:
Regarding wholesalers, which of the following descriptions is TRUE?
A. MANUFACTURERS' AGENT: does not own the products, usually carries stocks,
represents several competing manufacturers within a geographic area.
B. MERCHANT WHOLESALER: does not take title to products, takes possession,
provides full service, and usually handles a broad variety of products.
C. BROKER: does not own the products, does not take possession, major function is
selling, and does not anticipate customer needs.
D. SELLING AGENT: does not own the products, does the whole marketing job
nationally, and may handle competing lines.
E. All of these descriptions of different wholesalers are TRUE.
Answer:
If Frito-Lay (which has products in almost all the submarkets for snack foods) were to
try to increase its share of one of these markets, it would be pursuing a
______________ opportunity.
A. diversification
B. market penetration
C. product development
D. mass marketing
E. market development
Answer:
According to the text,
A. price has only a single dimension.
B. managers rarely have a choice in pricing.
C. managers should administer their prices.
D. managers should simply mark up their costs to determine pricing.
E. managers should follow a price leader's strategy.
Answer:
A "rollout" happens in the ____ step of the new-product development process.
A. idea generation
B. idea evaluation
C. screening
D. development
E. commercialization
Answer:
Which of the following statements about ethical behavior in business is true?
A. The legal environment sets the highest standards of ethical behavior.
B. The legal environment sets the maximum standards of ethical behavior.
C. The legal environment sets the minimum standards of ethical behavior.
D. The legal environment sets the normative standards of ethical behavior.
E. None of these statements about ethical behavior is true
Answer:
Any series of firms or individuals that participate in the flow of products from producer
to final user or consumer is known as:
A. customer service.
B. a packaging line.
C. a production line.
D. a channel of distribution.
E. mass marketing.
Answer:
The Statistical Abstract of the United States is a useful summary reference of the U.S.
market prepared by the:
A. Bureau of Economic Analysis.
B. Internal Revenue Service.
C. U.S. Census Bureau.
D. International Trade Administration.
E. Small Business Administration.
Answer:
Point-of-purchase materials is a sales promotion activity aimed at
A. distributors.
B. company's own sales force.
C. intermediaries.
D. retailers.
E. final consumers.
Answer:
Which of the following statements about company objectives is true?
A. Company objectives should be stated in vague terms to provide flexibility to
lower-level managers.
B. Company objectives should be set by top management with no input from marketing
managers.
C. A good mission statement can substitute for more specific company objectives.
D. Company objectives should be compatible with each other.
E. All of these statements about company objectives are true.
Answer:
Hershey's places a simple ad for its "Kisses" chocolates in SPORTS ILLUSTRATED.
The ad shows only a photo of the product with no copy words. This is an example of
a(n) ____________ promotion objective.
A. Persuading
B. Reminding
C. Informing
D. Pioneering
Answer:
BeQuick, a fast-food restaurant, has always operated outlets in malls. With a new
strategy that involves opening new outlets that sell the same menu but operate in
airports, zoos, casinos, and military bases, BeQuick is pursuing what type of
opportunity?
A. Product development
B. Market development
C. Differentiation
D. Market penetration
E. Diversification
Answer:
"Technical specialists":
A. are usually paid a straight commission on sales.
B. help explain technical details as needed.
C. usually work with business purchasing agents.
D. usually install emergency products.
E. are technical order getters.
Answer:
