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The total cost of mass media may force a small firm to use promotion alternatives that
are more expensive on a per contact basis.
Answer:
In customer-initiated communication, the customer decides how much information to
get.
Answer:
Discretionary income is the income from investments.
Answer:
A determining dimension for segmenting markets actually affects the purchase of a
specific brand in a product-market.
Answer:
Psychographics is the analysis of a person's day-to-day pattern of living as expressed in
that person's Activities, Interests, and Opinions.
Answer:
Evaluating marketing effectiveness of an individual firm is difficult, but not impossible.
Answer:
Less-developed countries usually experience the slowest population growth.
Answer:
If a product-market segment is "homogeneous within," it is called a 'substantial" target
market.
Answer:
One of the big problems with using an advertising agency is that the advertiser must
stick with the agency for a long time-at least two years-even if the agency's work is not
satisfactory.
Answer:
In 2010, 50 percent of U.S. families received less than $49,445 in income.
Answer:
Multichannel distribution occurs when a producer uses several competing channels to
reach the same target market perhaps using several intermediaries in addition to selling
directly.
Answer:
Early adopters are respected by their peers-and often are opinion leaders-so what they
think about a product is especially important for reaching later adopter groups.
Answer:
Selective distribution is growing in popularity because it provides 100 percent coverage
of the market.
Answer:
The effectiveness of an advertising medium depends on how well it fits with the rest of
a particular marketing strategy.
Answer:
The haggling that often occurs when a consumer buys a new car is a direct result of the
flexible pricing most auto dealers use.
Answer:
Wholesalers are more likely to dominate distribution channels in more advanced
economies than in less-developed ones.
Answer:
Because packaged products are regularly seen in retail stores, a good package may give
a firm more promotion effect than it could possibly afford with advertising.
Answer:
Drop-shippers have low operating costs because they do not actually handle the
products they sell.
Answer:
If a retailer adds a 25-cent markup to a product which costs the retailer $1.00, then
according to the text the retailer's markup is 25 percent.
Answer:
The term "3/10, net 30" means that a 3 percent discount off the face value of the invoice
is allowed if the invoice is paid within 10 days, and that otherwise the full face value is
due within 30 days.
Answer:
Consumers who are innovators tend to be young and well educated.
Answer:
It is more costly for firms to try and attract new customers than it is to build a strong
relationship with existing customers.
Answer:
Consumers-as well as business firms-should behave in a more socially responsible
manner to improve the performance of our macro-marketing system.
Answer:
Social targeting involves analyzing customers' online activities to get detailed insight
into their wants and needs.
Answer:
The total quality management approach recognizes that defects are an inevitable part of
mass production, and that the cost of replacing defective goods is just a cost of doing
business.
Answer:
"Economies of scale" means that as a company produces more of a product, the total
cost of production goes up.
Answer:
The American Customer Satisfaction Index makes it possible to track changes in
consumer satisfaction measures over time and even allows comparison among
countries.
Answer:
The universal functions of marketing are performed in the same way in all nations and
economic systems.
Answer:
In addition to food, warehouse clubs emphasize heterogeneous shopping goods.
Answer:
Both mass production and effective marketing are needed to satisfy the economic needs
of an advanced economy.
Answer:
Good marketing objectives should be ambitious and almost impossible to achieve.
Answer:
Dissonance takes place when an individual is NOT confident about the rightness of a
decision.
Answer:
Physical distribution is the part of marketing that is visible to most customers.
Answer:
Different purchase situations may require different marketing mixes, even though the
same target market is involved.
Answer:
People have always been materialistic, even in the most primitive societies.
Answer:
The marketing manager can control the variables in the market environment.
Answer:
In the pushing effort, an intermediary is likely to pay more attention to the producer that
offers it the best profit potential.
Answer:
Simply showing customer-contact employees around the rest of the business-so that
they learn how their contribution fits in the total effort-can be a key part of their
training.
Answer:
A consumer products manufacturer wants consumer reaction to its existing products.
Interaction is considered important to stimulate thinking. The firm should use:
A. the observation method.
B. focus group interviews.
C. the GSR (galvanic skin response) method.
D. quantitative interviews.
E. telephone interviews.
Answer:
A supply chain:
A. focuses on making services available whereas a channel of distribution focuses on
making goods available.
B. may involve many firms, but only one manufacturer.
C. includes all the activities involved in procuring materials, transforming them into
products, and distributing them to customers.
D. is easier to coordinate than a channel of distribution.
E. none of these alternatives about a supply chain is correct.
Answer:
Ginny Paulson was just promoted to marketing manager for her company. She also gets
a big raise with the promotion. Because Ginny's discretionary income will increase,
which of the following products is MOST likely to benefit?
A. Furnace repairs.
B. Automobile insurance.
C. A CD stereo system.
D. Medical services.
E. Grocery staples.
Answer:
Installations:
A. are important long-lived capital items.
B. seldom involve multiple-buying influence.
C. are very large expense items for buyers as soon as they buy.
D. are purchased often.
E. are always custom-made.
Answer:
Sumitomo Bank, a large bank in southern California, has just purchased 120 high-speed
telephone fax machines (costing about $1,300 each) to speed communications among
its many offices. The purchase was made by the purchasing manager, who expects the
machines to last about five years. In this case, the fax machines are:
A. accessory equipment.
B. MRO items.
C. installations.
D. component parts.
E. professional services.
Answer:
Which of the following age groups saw a decline in population from 2005-2015?
A. 0-9
B. 10-19
C. 30-39
D. 40-49
E. 80+
Answer:
The cash discount terms "2/10, net 30" mean that:
A. the invoice is dated February 10 and must be paid by February 30.
B. the buyer will, in effect, be borrowing at a 36 percent annual interest rate if he takes
30 days to pay the invoice.
C. the buyer must make a 2 percent down payment-with the balance due in 10 to 30
days.
D. a 2 percent discount off the face value of the invoice is permitted if the bill is paid
within 30 days.
E. None of these alternatives is correct.
Answer:
Which of the following is true of the impact that social media has on the consumer
decision process?
A. Marketing managers have direct control over social media influences.
B. Social media limits consumers exposure to a wide range of reference groups.
C. Social media amplifies the voices of opinion leaders.
D. Consumer adoption of the web and social media has had no significant effect on the
consumer decision process.
E. Marketing managers do not need to monitor the use of social media by opinion
leaders.
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.
Sure Foot's "field reps" are:
A. selling agents.
B. missionary salespeople.
C. brokers.
D. manufacturers' agents.
E. merchant wholesalers.
Answer:
Ford Motor Co. asks members of its target market to rate its cars and those of General
Motors and Chrysler on a 7-point scale in terms of two dimensions (comfortable seats
and engine power) so that it can establish a quadrant-grid map of these ratings. What
type of analysis is Ford conducting?
A. Positioning
B. Combining
C. Qualifying
D. Dimensional
E. Insight management
Answer:
Poor communication is likely if:
A. there is no "noise" in the message channel.
B. the source and the receiver do not have a common frame of reference.
C. the encoder and the decoder are not the same person.
D. immediate feedback is not possible.
E. the source and the receiver don't have personal contact.
Answer:
A firm with a stockturn rate of 5 that sells products that cost it $150,000 per year is
keeping an average of _____ worth of inventory.
A. $75,000
B. $150,00
C. $750,000
D. $4,000
E. $30,000
Answer:
In segmenting the cell phone user product-market, cell phone maker Super Cellular
found one segment that valued sending text messages and another that wanted their
phone to play MP3 music files. The firm developed a single handset for both market
segments and used the same marketing mix in targeting both segments. For this
product-market, Super Cellular operated as a ___.
A. combiner
B. value operator
C. market leader
D. segmenter
E. multi-segmenter
Answer:
______ means moving into totally different lines of business, perhaps entirely
unfamiliar products, markets, or even levels in the production-marketing system.
A. Diversification
B. Market development
C. Product development
D. Differentiation
E. Market penetration
Answer:
Statistical packages are easy-to-use computer programs that analyze data.
Answer:
Regarding the roles of marketers and consumers in improving the macro-marketing
system:
A. marketing managers should not be expected to improve and extend the range of
goods and services they make available.
B. the decisions that marketing managers make always increase the choices available to
consumers.
C. consumer-citizens have the responsibility to vote for laws that place constraints on
businesses, if those businesses harm the ecological system or make excessive demands
on scarce resources.
D. marketers and consumers should decide in advance what products will be produced
so as not to waste scarce resources.
E. None of these alternatives is correct.
Answer:
Regarding alternative transporting modes, which of the following statements is TRUE?
A. Waterways serve the most locations.
B. Airways offer the most expensive transporting mode.
C. Railways provide the lowest cost considering weight.
D. Trucks offer the fastest speed.
E. Pipelines in the U.S. are located mostly in the Northeast.
Answer:
The _____ is a decision-making approach that focuses on being objective and orderly in
testing ideas before accepting them.
A. decision support system
B. situation analysis
C. idea generation process
D. marketing information system
E. scientific method
Answer:
Which of the following statements about inventory and storage is TRUE?
A. A distribution center is used to avoid unnecessary storing costs.
B. Only government agencies can store products in public warehouses.
C. Decisions about inventory levels are usually not of concern to marketing
managers-since inventory levels are best determined based on the amount of the
product produced.
D. Achieving customer service goals makes a large inventory almost inevitable.
E. Minimizing storage costs will lead to lower total distribution costs.
Answer:
The two basic decisions to be made in developing a compensation plan are the method
of payment and
A. designation of the salesperson.
B. level of compensation.
C. number of years of service.
D. number of client commendations received.
E. career advancement.
Answer:
Which of the following statements about the communication process is True?
A. The source is the sender of the message.
B. The receiver is the potential customer.
C. Encoding is done by the source.
D. The receiver does decoding.
E. All of these statements about the communication process are True.
Answer:
Which of the following is LEAST LIKELY to compete in the same generic market with
the others?
A. Long-stem roses
B. A tomato
C. Champagne
D. A greeting card
E. A telegram
Answer:
The "universal functions of marketing" can be performed by:
A. producers.
B. intermediaries.
C. consumers.
D. collaborators.
E. All of these.
Answer:
_____ refers to an organized way of continually gathering, accessing, and analyzing
information that marketing managers need to make ongoing decisions.
A. Active marketing
B. Manufacturing information system
C. Marketing research
D. Marketing information system
E. Target marketing
Answer:
Secondary data is often available-at little or no cost-from:
A. both private and government sources.
B. the Internet.
C. trade associations.
D. company files.
E. All of these are good sources for secondary data.
Answer:
When fast food restaurant, Tommy's Tacos, had poor sales in Central City, marketing
managers closed one outlet on the east side of town and opened two new locations on
the south side of town. These moves represent
A. operational decisions in the product decision area.
B. strategy policies in the place area.
C. strategy policies in the product area.
D. operational decisions in the place area.
E. strategy policies in the promotion area.
Answer:
Lacey Springs Apple Co. buys fresh apples in truckload quantities, regroups the
heterogeneous commodities into homogeneous lots according to grade and quality, and
then sells them to retailers. This "regrouping activity" is called:
A. accumulating.
B. bulk-breaking.
C. sorting.
D. wholesaling.
E. assorting.
Answer:
Ranked from lowest level to highest level, the "hierarchy of needs" model includes:
A. personal, social, safety, and physiological needs.
B. physiological, safety, social, and personal needs.
C. safety, personal, social, and physiological needs.
D. social, personal, safety, and physiological needs.
E. physiological, safety, personal, and social needs.
Answer:
Regarding the marketing research process, defining the problem
A. is often confused with identifying the symptoms of the problem.
B. can be guided by the marketing strategy planning framework.
C. precisely may have to wait until after a situation analysis has been completed.
D. All of these alternatives are true.
Answer:
A firm may use all of the following methods for beating the competition except:
A. apply for patents.
B. seek a monopoly.
C. develop a sustainable competitive advantage.
D. conduct a competitor analysis.
E. utilize advanced technology.
Answer:
Use this information to answer the following question that refer to the PSI case.
Pump Systems, Inc. (PSI) produces two major kinds of water pumps. The smaller
pumps range in price from $5-$30, and are used in drinking fountains and soft-drink
machines. Most of these pumps are bought by manufacturers of these machines and
built into their product. PSI also builds larger pumps used in swimming pools and
reservoirs. The prices of these items range from $250-$500. These are usually
purchased by contractors, who build the pools and reservoirs.
PSI sells nationally through sales reps located in the large industrial centers. These reps
handle the selling function for PSI in their geographic areas and provide market
information. They usually do the same thing for 10 to 20 similar manufacturers of
noncompeting products-and are paid on a commission basis.
There are no other producers of the smaller pumps in the United States-because PSI has
patent protection. As a result of this, management has decided to follow a policy of
pricing high-to maximize profits-while the patent lasts.
Several competitors are in the market for the larger pumps. Industry prices and profits
of these pumps have dropped in the past few years as a result of firms trying to increase
their market shares. The product design has remained fairly stable over the last few
years-and one firm dropped out as it saw that it would lose more money with its
"me-too" product. Industry sales are increasing-but at a very slow rate. The price of
these products is determined by adding a standard markup percentage to the variable
cost of the items-to cover fixed costs and profit. For instance, pump Z has variable costs
of $250 per unit, and a markup of 40 percent of this cost is added to the $250 to get its
selling price. Management has estimated that fixed costs applicable to this product are
$200,000 per year.
PSI publishes a product catalog which is revised annually. Also, it exhibits in most trade
shows. PSI follows a policy of charging the same price to all customers-so all will have
the same costs at their own plants. All purchases are shipped directly from PSI's factory
to its customers-and title passes at PSI's factory.
PSI's sales reps are:
A. selling agents.
B. company salespeople.
C. full-line merchant wholesalers.
D. rack jobbers.
E. manufacturers' agents.
Answer:
Cash discount terms of 2/10, net 30 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 30 days.
A. 10
B. 30
C. 18
D. 12
E. 36
Answer:
