Archives: Quiz

Corrective advertising corrects deceptive advertising. The basic idea for supermarkets developed in the U.S. in the 1960s when consumers started to move from the cities to the suburbs. Answer: FALSE The basic idea for supermarkets developed in the United States […]

The definition of quality focuses on the producer. Pricing a product sold in a foreign market lower than the cost of producing it is called dumping. Answer: TRUE Dumping is pricing a product sold in a foreign market below the […]

Apple’s Genius Bar is a good example of a company offering its customers “branded services.” Firms that are described by NAICS code 3152 are more similar than firms described by NAICS code 31. Answer: TRUE The NAICS code breakdowns start […]

The main function of a “distribution center” is to speed the flow of goods and avoid unnecessary storage. According to the text, consumer buying decisions are influenced by economic needs, psychological variables, social influences, and the purchase situation. Answer: TRUE […]

Product class does not vary by country. “Demand-backward pricing” involves a producer estimating an acceptable final consumer price and working backward to determine what the producer can charge in the channel. Answer: TRUE Demand-backward pricing is setting an acceptable final […]

Different purchase situations may require different marketing mixes, even though the same target market is involved. A S.W.O.T. analysis identifies the ‘special weapons or tactics” used by the competitor in a product-market that has the most profitable marketing mix. Answer: […]

The “battle of the brands” hurts consumers by driving up prices. Sales reps often must plan whole marketing strategies for their own geographic territories. Answer: TRUE Salespeople can be strategy planners too. Some salespeople are expected to be marketing managers […]

A marketing dashboard displays up-to-the-minute marketing data in an easy-to-read format. Facebook, FourSquare, and LinkedIn are all examples of publicity tools for interactive communication between a company and final consumers or business customers. Answer: TRUE Facebook, FourSquare, and LinkedIn are […]

Actually making goods or performing services is called marketing. During the ‘sales era,” the firm tries to improve short-run marketing policy planning to tie together its activities. Answer: FALSE The sales era is a time when a company emphasizes selling […]

A marketing audit is similar to an accounting audit or a personnel audit, which businesses have used for some time. A requisition is a request to buy something. Answer: TRUE A person who needs to purchase something usually completes a […]

Marketing managers for Mountain Dew used a positioning statement to help focus efforts and gain market share in a competitive environment. Business customers are sometimes less price sensitive if there are switching costs. Answer: TRUE Customers are sometimes less price […]

Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries. The break-even point is the intersection of the total cost curve and the total profit curve. Answer: FALSE Break-even […]

In the U.S., almost as many people are employed in sales work as they are in advertising. Most purchasing managers use search engines as their FIRST step to satisfy new or unfamiliar questions. Answer: TRUE Most purchasing managers start with […]

The Federal Trade Commission can require firms to use “corrective advertising” or “affirmative disclosures,” if it decides a particular advertisement is unfair or deceptive. The introduction of a totally new product idea would present a greater challenge in coordinating the […]

Personal selling and advertising are both forms of sales promotion. Motivation, perception, learning, attitudes, trust, and lifestyle are psychological variables which affect consumer buying. Answer: TRUE Motivation, perception, learning, attitude, trust, and lifestyle are some of the psychological variables which […]

Organizations that adopt the marketing concept should be concerned about marketing ethics as well as broader issues of social responsibility. Promotion is communicating information between the seller and the potential buyer or others in the channel to influence attitudes and […]

In monopolistic competition, managers sometimes try to differentiate very similar products by relying on promotion or other elements of the marketing mix. Internet tools used in the B2B market that focus primarily on lowering price do not always lower TOTAL […]

Almost every business transaction in our modern economy involves an exchange of money. Personal selling is important for new unsought products, but it tends not to be important for regularly unsought products. Answer: FALSE Regularly unsought products are products like […]

The marketing strategies for the two shoe retailers Payless and Zappos are very different but both are successful. Many of the people affected by a new strategy may not be under the control of the marketing manager. Answer: TRUE People […]

Pushing (a product through a channel) means using normal promotion effort to help sell the whole marketing mix to intermediaries. While excess capacity can be costly, it can be a part of a sensible plan for preventing lost sales if […]

If a firm’s demand curve is fairly elastic, a penetration pricing policy would be more suitable than a skimming pricing policy. A lot more firms will put ads on websites if there is a direct relationship between costs and results. […]

A hardware wholesaler that buys nails from a manufacturer and then sells them to retail hardware stores is a merchant wholesaler. The U.S. auto industry has become much more marketing-oriented since Henry Ford introduced the Model T. Answer: TRUE Henry […]

Selective distribution is growing in popularity because it provides 100 percent coverage of the market. In general, most sales presentations follow the sequence of stages in the AIDA model. Answer: TRUE Most sales presentations follow the AIDA sequence. It can […]

Most firms avoid administered prices because they may be illegal under the Robinson-Patman Act. Prestige pricing involves setting a rather high price because the product has a normal down-sloping demand curve. Answer: FALSE Target customers who respond to prestige pricing […]

Direct-response promotion usually relies on a customer relationship management database to target specific prospects. The mass-customization approach is not useful if a firm wants to focus on a particular market segment. Answer: FALSE With the mass-customization approach, a firm may […]

Customer service guarantees are becoming less common because service companies can’t live up to their promises. Laws such as the Pure Food and Drug Act were passed because pro-competition legislation did not protect consumers very well in some areas. Answer: […]

“Good” market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational. In countries where physical distribution systems are inefficient, consumers face shortages of the products they need. Answer: TRUE In countries where physical distribution systems are inefficient, […]

Pop-up ads are small rectangular boxes that usually include text, graphics, and sometimes video to create interest. Because almost all of the world’s population can read and write, international marketers have no problems in communicating with potential customers no matter […]

Rapid growth strains human resources because it’s a challenge getting enough qualified people. Cross-functional links rarely affect strategy planning. Answer: FALSE Cross-functional links impact one’s ability to develop marketing strategies and plans that really work. A firm that adopts the […]

On average, U.S. corporations spend only about 2.5 percent of their sales on advertising. Answer: In the U.S. about three-fourths of new retailing ventures fail during the first year. Answer: TRUE In the United States about three-fourths of new retailing […]

Exporting is often the first step into international marketing. Answer: Implementation means putting the marketing plan into operation. Answer: TRUE Implementation refers to putting marketing plans into operation. Storing allows producers and intermediaries to keep stocks at convenient locations, ready […]

Direct spoken communication between sellers and potential customers is personal selling. Answer: The AIDA model focuses on markets as a whole while the adoption curve model focuses on individuals. Answer: FALSE The AIDA model looks at individuals. The adoption curve […]

Marketing discourages the development and spread of new ideas, goods, and services. Answer: According to the text, markup (percent) means percentage of cost unless otherwise stated. Answer: FALSE Unless otherwise stated, markup (percent) means percentage of selling price. In the […]

Salespeople usually earn more than top management. Answer: Customer lifetime value involves a financial analysis that considers all of a customer’s purchases over their lifetime. Answer: TRUE The total stream of purchases that a customer could contribute to the company […]

Sales data becomes wisdom when it provides answers to questions of “who,” “what,” “where,” “how much,” and “when.” Answer: The vast majority of advertising agencies are small, with 10 or fewer employees. Answer: TRUE The vast majority of advertising agencies […]

Although the total industry demand for business products may be inelastic, the demand facing individual sellers may be extremely elastic. Answer: The traditional view of promotion has focused on communication initiated by the seller. Answer: TRUE Traditional thinking about promotion […]

A warranty must be available for inspection before a purchase is made. Answer: Micro-marketing often does cost too much because many firms improperly blend the four Ps and misunderstand both their customers and the market environment that affects their operation. […]

A firm that adopts the “marketing concept” will aim all its efforts at satisfying customers, while trying to make a profit. Answer: It is easier for a marketer to work with existing attitudes than to try to change them. Answer: […]

Exclusive distribution is more likely to involve a more formal arrangement than is selective or intensive distribution. Answer: Good relations with intermediaries, good locations, and good salespeople are some of the many resources of a firm that should be evaluated […]

Getting reactions from customers about how well a new-product idea fits their needs is A. concept testing. B. target marketing. C. screening. D. brand positioning. E. product liability. Answer: A firm which makes stereo radios and CD players for car […]

Regarding sales force compensation methods: A. combination plans provide some security and some incentive. B. straight commission avoids the need to consider a sales quota. C. straight salary provides the most incentive. D. sales quotas play no role in any […]

Use this information for question that refer to the Pricing 1 case. (WPI) case. As a project for her marketing class, Emily Washington is researching how five local businesses price their products. The following are brief sketches of what she […]

Direct-response promotion usually relies on a(n) _____ database to target specific prospects. A. customer relationship management B. sales force management C. entity-attribute-value model D. enterprise relationship management E. multidimensional preference Answer: A young working couple earned $35,000 last year, and […]

The text’s discussion of Ford’s marketing strategy highlights the fact that: A. creative strategy planning is needed for survival. B. there is little alternative but to stick with the traditional promotion channels for a product. C. most consumers want only […]

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate. She must plan her offerings with the _____ environment in mind. A. economic B. […]

When selling ____ products, a marketing manager should recognize that consumers have low price sensitivity and the product should have widespread distribution near the probable point of need. A. homogeneous B. specialty C. emergency D. impulse E. regularly unsought Answer: […]

Regarding new-product development, market tests: A. are used mostly for durable products because of their high production costs and risks. B. seek customer reactions to ideas-not actual products. C. should test the product and specific marketing mix variables. D. are […]

A(n) _______ is a marketing mix that customers see as better than a competitor’s mix and cannot be quickly or easily copied. A. resource combination B. sustainable competitive advantage C. objective-centered approach D. competitor analysis plan E. competitor matrix Answer: […]

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 […]

Which of the following is NOT a component material? A. Paper. B. Copper wire. C. Copper ore. D. Copper screens. E. None of these, i.e., all are component materials. Answer: Compared to U.S. averages, the median age of Hispanic Americans […]