A straight commission compensation plan is one __________.
a. that assigns the same commission percentage regardless of a product’s value, number
sold, or difficulty level of the sales effort
b. in which a salesperson is paid a specified salary plus a commission and/or bonus on
sales generated
c. that determines fair and equitable compensation that includes a weighted system for
different types of items or different sized territories
d. in which the salesperson is paid a fixed amount per week, month, or year
e. in which a salesperson’s earnings are directly tied to the sales or profits he or she
generates
Answer:
Suppose a manufacturer quotes price in the following form: List price$100 less 30/10/5.
When calculating this trade discount, the first number “30” in the percentage sequence
always refers to the
a. discount to the ultimate consumer.
b. manufacturer’s cost.
c. retail end of the channel.
d. channel intermediary closest to the manufacturer.
e. original unit cost.
Answer:
Two major issues that contribute to consumers’ hesitancy to use online shopping are
__________.
a. quality and price
b. privacy and security
c. computer knowledge and security
d. price and privacy
e. quality and computer knowledge
Answer:
Summing the total unit cost of providing a product or service and adding a specific
amount to the cost to arrive at a price is referred to as __________.
a. standard markup pricing
b. experience curve pricing
c. cost-plus pricing
d. product-line pricing
e. target return-on-investment pricing
Answer:
The method of __________ involves generalizing the results from the sample to much
larger groups of distributors, customers, or prospects to help decide on marketing
actions.
a. nonprobability sampling
b. probability sampling
c. extrapolation
d. statistical inference
e. criteria sampling
Answer:
Russ Berry Company is a company that makes gifts and collectibles. When its
southeastern sales representative is driving through a community on her way to make a
sales call, she looks for small independent florists and gift shops. When she finds a
retailer whom she knows is not carrying Russ products, she stops and makes a sales
call. The company’s sales rep is using _________ to find prospects.
a. stimulus-response selling
b. order taking
c. cold canvassing
d. formula selling
e. closing
Answer:
A few years ago, Benetton delivered new styles to its worldwide stores once a month.
Today, it replenishes its racks once a week. Getting the fashions to its stores more
quickly means that effectively using logistics has increased Benetton’s market share by
providing
a. larger lots of available inventory for the retailer.
b. time and place utility for its customers.
c. increased steps in the value proposition.
d. technological advances leading to greater customer information.
e. increased customer traffic.
Answer:
Controlling agreements between independent buyers and sellers whereby sellers are
required to not sell products below a minimum retail price is called
a. competitive collusion.
b. price cooperation.
c. horizontal price fixing.
d. lateral price fixing.
e. vertical price fixing.
Answer:
Which of the following statements describes one of the major reasons codes of ethics
are violated?
a. Most companies do not have a formal code of ethics.
b. Most companies overlook infractions if the action is unethical but legal.
c. Many codes of ethics lack specificity.
d. There is often a discrepancy between the written code of ethics of a firm and the
personal and moral beliefs of individual employees.
e. There are very few violations in firms with written codes of ethics.
Answer:
All of the following variables are central to how consumers learn from repeated
experience EXCEPT:
a. purchase
b. reinforcement
c. response
d. drive
e. cue
Answer:
Greenwashing refers to
a. marketing efforts to produce, promote, and reclaim environmentally sensitive
products.
b. conducting business in a way that protects the natural environment while making
economic progress.
c. the practice of making an unsubstantiated or misleading claim about the
environmental benefits of a product, service, technology, or company practice.
d. the practice of deliberately concealing the mistakes that polluters make regarding the
environmental disasters they perpetrated.
e. the recognition of the need for organizations to improve the state of people, the
planet, and profit simultaneously if they are to achieve sustainable, long-term growth.
Answer:
A means of displaying or graphing in two dimensions the location of products or brands
in the minds of consumers to enable a manager to see how consumers perceive
competing products or brands, as well as its own product or brand, is referred to as a
a. perception matrix.
b. growth-share matrix.
c. market-product grid.
d. perceptual map.
e. product differentiation chart.
Answer:
Which of the following is a trend that influences newspapers today?
a. Newspapers are enjoying increasing circulation.
b. Newspapers are increasing the number of printed pages.
c. There is a growth in new types of news organizations.
d. More cities are increasing the number of newspapers that are available.
e. Cheaper newsstand prices have rekindled an interest in newspapers.
Answer:
Which of the following statements regarding new car purchases in the U.S. is most
accurate?
a. While men of all races pay basically the same price, women, regardless of race, pay
considerably less.
b. Seventy-nine percent of all men purchasing cars cite haggling over price as the most
exciting aspect of the purchase.
c. A one-price policy is now the standard in the automobile industry due to violations of
the Robinson-Patman Act.
d. Female automobile salespeople rarely, if ever, offer flexible pricing to female
customers.
e. African Americans, women, and Hispanics pay higher than the average price for a
new car.
Answer:
A make-buy decision refers to
a. the decision-making process that determines whether a product is sustainable.
b. the decision-making process to determine which manufacturer meets a firm’s
evaluative criteria for the manufacturing of a new component part or equipment.
c. an evaluation of whether components and assemblies will be purchased from outside
suppliers or built by the firm itself.
d. an evaluation of different suppliers to determine which one can fill an order without
having to make any changes to the original product while maintaining the same level of
quality.
e. the decision-making process to determine which supplier can fill an order the fastest
by a specified time period.
Answer:
An example of a(n) __________ is when Kraft Foods uses the distribution system of
Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in
Japan.
a. direct marketing channel
b. industrial distribution system
c. dual distribution system
d. franchising operation
e. strategic channel alliance
Answer:
A straight rebuy is a(n) __________ while a modified rebuy is a(n) __________.
a. exchange; resale
b. routine reorder; exchange
c. first-time order; routine reorder
d. changed order; first-time order
e. routine reorder; changed order
Answer:
Figure 1.B
Which of the following statements most likely would account for the shift in the
demand curve from D1 to D2 shown in Figure 1.B above?
a. The firm increased its prices and consumers perceived the value of the product to be
greater.
b. There were more product substitutes available in the marketplace.
c. Competitors in the market lowered their prices.
d. A downward economic shift caused a proportionate change in consumer income.
e. The firm’s price remained the same but changes occurred in consumer tastes.
Answer:
Which of the following products would have a fad product life cycle curve?
a. women’s hosiery
b. pet rocks
c. electric cars
d. convection ovens
e. sport drinks
Answer:
The U.S. Rice Millers’ Association claims that if the Japanese rice market were opened
to imports by lowering __________, lower prices would save Japanese consumers $6
billion annually and the United States would gain a large share of the Japanese rice
market.
a. boycotts
b. tariffs
c. quotas
d. sanctions
e. subsidies
Answer:
Figure 1.D: Average Annual Sales per Household of Tony’s Pizza,
by Age of Children in Household
Figure 1.D above shows that
a. Tony’s Pizza sales to households with some children between the ages of 13 to 17
decreased significantly over the period 2008 to 2011.
b. Tony’s Pizza unit sales to households with children between the ages of 6 to 12
decreased over the period 2008 to 2011.
c. Tony’s Pizza sales to single-person households have remained relatively steady from
2008 to 2011.
d. Tony’s Pizza sales to households with no children under 18 have declined from 2008
to 2011.
e. there is not a significant enough difference between age groups that would warrant a
marketing action at this time.
Answer:
Carl and Nancy Johnson prepared a household budget in an attempt to manage their
money better. As part of their budgeting process, Carl and Nancy prepared the
following list:
After totaling their necessary expenses, which equals $1,700, Carl and Nancy
subtracted that amount from their monthly income of $4,500. The Johnsons were happy
to realize that they had $2,800 left over, which is their __________.
a. gross income
b. personal income
c. disposable income
d. discretionary income
e. profit
Answer:
One evening while watching TV, your stomach growls. You see an ad for Subway. You
walk to the Subway shop and buy a sandwich, which tastes great. In terms of behavioral
learning, walking to the Subway shop and buying a sandwich is a __________.
a. drive
b. response
c. reinforcement
d. cue
e. prompt
Answer:
Firms such as General Electric, Marriott, and Facebook have achieved great success by
putting a huge effort into implementing the marketing concept, giving their firms a
a. production orientation.
b. sales orientation.
c. customer relationship orientation.
d. service orientation.
e. market orientation.
Answer:
Persuading the consumer to buy the product rather than substitutes is the promotional
objective during which stage of the product life cycle?
a. introduction
b. growth
c. maturity
d. accelerated development
e. early growth
Answer:
Although there are many factors contributing to the success of major global marketers,
a common theme seems to be that they
a. first became involved with a formalized trade organization, such as the WTO.
b. specialized in services rather than consumer goods.
c. employed a multicultural or multinational staff.
d. first succeeded in intense domestic competition.
e. were the largest companies in their industry.
Answer:
Most paint is neither biodegradable nor friendly to the environment because it is made
with petroleum solvents. A builder who decided to build a subdivision with 500 homes
and paint each with an environmentally friendly, soy-based paint (even though it costs
more) would be practicing
a. profit responsibility.
b. cause marketing.
c. stakeholder responsibility.
d. mass marketing.
e. societal responsibility.
Answer:
The ___________ format, which emphasizes problem solving and customer solutions,
is the most consistent with the marketing concept and relationship building.
a. canned sales
b. formula selling
c. persuasive selling
d. need-satisfaction
e. stimulus-response
Answer:
Tylenol successfully used __________ with the introduction of Tylenol Arthritis Pain,
Tylenol Sinus Congestion & Pain Daytime, Tylenol Cold and Flu, and Tylenol PM.
a. family branding
b. subbranding
c. multiproduct branding
d. mixed branding
e. generic branding
Answer:
The generation of children born between 1946 and 1964 is referred to as
a. baby busters.
b. baby boomlets.
c. Generation Y.
d. baby boomers.
e. Generation X.
Answer:
Generation X
a. is the least healthy generation since the 1940s.
b. accounts for the largest amount of consumer spending.
c. is the largest segment of business travelers.
d. is interested in distinctive, memorable, and personal experiences.
e. includes younger members known as millennials.
Answer:
With respect to price, which of the following type of consumer product would most
likely be very expensive?
a. convenience product
b. shopping product
c. unsought product
d. specialty product
e. discretionary product
Answer: