The retailer L.L. Bean uses a multichannel approach by offering its printed catalog in
the following format as well ___________.
A. a cable TV shopping channel
B. door-to-door selling
C. a phone solicitation
D. a website
Answer:
Educated guesses about the relationships between things or about what will happen in
the future are:
A. hypotheses.
B. laws.
C. proposals.
D. theories.
E. predictions.
Answer:
“Advertising”:
A. is less expensive than personal selling for reaching large and widespread target
markets.
B. is any paid form of nonpersonal presentation of ideas, goods, or services by an
identified seller.
C. is not the same as publicity.
D. is less flexible than personal selling.
E. All of these alternatives for “advertising” are correct.
Answer:
____________________ is the extent to which a firm fulfills a customer’s needs,
desires, and expectations.
A. Customer forecast
B. Customer satisfaction
C. Customer service
D. Customer support
Answer:
The main difference between a generic market and a product-market is that:
A. a generic-market involves a less similar set of needs than does a product-market.
B. a product-market is usually larger than a generic market.
C. product-markets usually don’t involve competition, but generic markets do.
D. sellers in a generic market are more concerned with prices than sellers in a
product-market.
E. There is no difference between the two.
Answer:
Which of the following best illustrates a “breakthrough opportunity?”
A. A recording company’s new CD gets unexpected national publicity on MTV and
almost every teenager wants a copy for Christmas.
B. A drug company develops a patented pill that people can take once a year and safely
avoid catching a cold.
C. A bank puts its credit card machines in convenient drive-up locations-so they will be
more convenient for customers.
D. A nurse realizes that the growing number of older people will increase the demand
for nursing home services, so she quits her job and opens a quality nursing center for
the elderly.
E. A wireless phone company introduces a new service that offers more free weekend
minutes than any other service in its market area.
Answer:
In the _____ step of the new-product development process, a marketing manager
evaluates how well the idea fits with the company’s objectives.
A. idea generation
B. commercialization
C. screening
D. development
E. roll out
Answer:
Regarding airfreight, which of the following statements is NOT true?
A. Airfreight may reduce the total cost of distribution.
B. Inventory costs usually increase, since only small quantities can be shipped at a time.
C. Very bulky items cannot be shipped economically.
D. Airfreight is opening up new markets for many perishable items.
E. There are usually fewer problems from theft and damage with airfreight.
Answer:
Identify the incorrect statement pertaining to the GNI per capita.
A. The GNI per capita in the United States is the highest in the world.
B. The GNI per capita is quite high in the United States, Japan, and Germany.
C. The GNI per capita gives some idea of the income level of people in the country.
D. Many managers see great potential in countries where GNI per capita is low.
E. Managers see less competition where GNI per capita is low.
Answer:
In the customer-initiated interactive communication process:
A. the message channel is no longer a factor.
B. noise is no longer a factor.
C. messages typically must be very short and simple.
D. the buyer starts the process.
E. none of these alternatives is correct.
Answer:
The city of St. Louis is encouraging its residents to drink tap water instead of filling its
landfills with plastic water bottles, even though some consumers prefer the convenience
of plastic water bottles. This is an example of
A. customer value.
B. economies of scale.
C. the storing function.
D. innovation.
E. the micro-macro dilemma.
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.
Which physical distribution system should Harter choose for Ricotta Tool Co.?
A. Airfreight
B. Inland waterways
C. Truck
D. Rail and warehouse
E. Cannot be determined without more information
Answer:
In which quadrant of the S.W.O.T analysis tool does the following fit? A firm has
adequate resources.
A. Strengths
B. Weaknesses
C. Opportunities
D. Threats
Answer:
Indirect competitive advertising seeks:
A. to develop primary demand.
B. immediate buying action.
C. to develop goodwill for a company-so target customers will eventually buy one or
more of its products.
D. to develop selective demand-to affect future buying decisions.
E. None of these alternatives is correct.
Answer:
Which of the following statements about marketing’s impact on the economy is False?
A. Companies force consumers to buy products at exorbitant prices.
B. When new products are introduced, the prices of old products often drop.
C. Rising profits lead to increased investments and further economic growth.
D. Increased profits attract competition.
E. Profits begin to drop as new competitors enter a market with similar products.
Answer:
The product life cycle helps marketers understand market trend patterns related to all of
the following except:
A. the cycle of any particular individual brand.
B. industry sales and profits for a product idea within a particular productmarket.
C. the growth and subsequent decline of sales for a product category.
D. the impact of increased competition on a new product idea over time.
E. the need for marketers to adjust their marketing mixes for a product category over
time.
Answer:
Industry profits decline during the market maturity stage due to:
A. declining sales.
B. declining sales and declining costs.
C. mismanaged budgets.
D. rising promotion costs and increased competitive pressure to offer product at lowest
prices.
E. new varieties of the original product that fail to meet customer needs.
Answer:
Organizational buying based on a written (or electronic) description of a product is
called buying by ______________.
A. purchasing specifications
B. inspection
C. negotiated contract
Answer:
Which of the following illustrates the marketing concept in action?
A. Three pediatricians set up a group practice-so that at least one is always available for
emergencies.
B. Bank ATMs that dispense cash are placed in fast-food restaurants.
C. The Nevada auto registration office mails license tags to people, to reduce
inconvenient waiting in line.
D. A veterinarian has office hours in the evening to see pets whose owners must work
during the day.
E. All of these illustrate the marketing concept in action.
Answer:
Different firms in the same line of business are likely to use the same markup percent:
A. because they all want to have the same selling price.
B. because this is a government requirement.
C. because they are likely to have similar operating expenses.
D. because this is what is acceptable to manufacturers.
E. only if they are in pure competition.
Answer:
This act, passed by the U.S. Congress in 1977, prohibits U.S. firms from paying bribes
to foreign officials.
A. Corporate Responsibility for the New Millennium Act
B. Racketeer Influenced and Corrupt Organization Act
C. Ethics in Business Act
D. Anti-Bribery Act
E. Foreign Corrupt Practices Act
Answer:
Which of the following statements about a salesperson’s role is TRUE?
A. The salesperson rarely serves as a link between the firm and its customers.
B. The salesperson represents the customer back inside the selling firm.
C. The salesperson also holds titles such as management specialist and chief engineer.
D. The salesperson only aims to sell the customer.
E. A salesperson is seldom responsible for negotiating prices or diagnosing technical
problems.
Answer:
Which of the following is NOT an example of sales promotion?
A. Establish frequent buyer programs
B. Run contests for its sales people
C. Secure favorable media coverage
D. Provide samples to its customers
E. Provide coupons for products
Answer:
Point-of-purchase ads for a product work best in which stage of the adoption process?
A. Awareness
B. Interest
C. Evaluation and trial
D. Decision
E. Confirmation
Answer:
The text considers five “eras” of marketing evolution. These five eras in their logical
order are:
A. Simple trade, production, sales, marketing company, marketing department
B. Subsistence, production, sales, entrepreneurial, marketing company
C. Simple trade, production, sales, marketing department, international trading
D. Simple trade, production, sales, entrepreneurial, marketing company
E. Simple trade, production, sales, marketing department, marketing company
Answer:
Raw materials are different from other business products in that:
A. buyers do not seek sources of supply.
B. they require more grading.
C. they require a lot of handling before moving to the next production process.
D. they never involve contract production arrangements.
E. pricing decisions for farm products are more complicated.
Answer:
A furniture producer has decided to buy its upholstery cloth from new suppliers. The
president has given the purchasing manager responsibility to make the final selections
and negotiate the terms. The purchasing manager looks through books with samples and
specifications, and then calls salespeople to make presentations to the production
manager, who is concerned about how easy the cloth will be to cut and sew. In this case,
the purchasing manager is
A. an influencer.
B. a buyer.
C. a decider.
D. a gatekeeper.
E. all of these are correct.
Answer:
Fly-Right Travel Agency arranges vacation packages to Disney World in Florida. The
price includes airfare, a rental car, deluxe accommodations, and tickets to Disney World
and other attractions. Fly-Right is using:
A. Product-bundle pricing.
B. Complementary product pricing.
C. Full-line pricing.
D. Bid pricing.
E. Demand-backward pricing.
Answer:
Specialty products:
A. need widespread distribution at low cost.
B. need enough exposure to facilitate price comparison.
C. need adequate representation near similar products.
D. need widespread distribution near probable points of sale.
E. can have limited availability.
Answer:
Regarding pricing:
A. the use of prestige and psychological pricing shows that most retailers do not
consider demand when setting prices.
B. bait pricing tries to attract customers on the high end of a demand curve.
C. the FTC considers bait pricing a deceptive act and has banned its use in interstate
commerce.
D. leader-priced items are priced very low to get customers into the store-not to sell
these items.
E. All of these alternatives are correct.
Answer: