Archives: Quiz

Which of the following advertising headlines is MOST oriented toward stimulating PRIMARY demand? A. “See your Hewlett Packard dealer to learn how an affordable portable printer can make business travel easier.” B. “Panasonic is the value leader.” C. “IBM printers […]

When an individual producer sets a price for its product to earn a certain profit while consumers search for the product at the lowest price available from any producer, this is an example of: A. separation in time. B. discrepancy […]

Newman’s Own (a salad dressing brand) donates 100 percent of its after-tax profits to progressive causes. Newman’s Own is focusing on satisfying what level in the hierarchy of needs? A. Social needs B. Personal needs C. Safety needs D. Physiological […]

Business professional services: A. may not be purchased outside the firm if they are needed regularly. B. support a firm’s operations. C. are offered by a growing number of specialists. D. are generally treated as expense items. E. All of […]

Use the following information to answer question that refer to the Jewel Craft case. Jewel Craft, Inc. is a leading producer in the United States’ women’s costume jewelry and accessories market. Its brands are well known and are sold by […]

A good S.W.O.T. analysis helps a manager focus on a strategy that takes advantages of the firm’s opportunities and strengths while avoiding its weaknesses and threats to its success. Answer: Direct-response promotion targets specific individuals who respond directly. Answer: TRUE […]

Mass selling and sales promotion dominate the promotion blends of consumer products firms in the market maturity stage. Answer: In the United States, the West and the South are growing faster than the Northeast and the North Central areas. Answer: […]

Although the salesperson’s job may change constantly, there are three basic sales tasks. Answer: Customer lifetime value represents the total stream of purchase a customer could contribute to the company over the life of the relationship. Answer: TRUE Customer lifetime […]

Introductory price dealing involves setting high initial prices on a product when it is introduced-to see how much consumers are willing to pay. Answer: Status quo pricing objectives suggest avoiding price competition, but may lead to very aggressive competition with […]

The term ‘supply chain” can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm). Answer: Motivation, perception, learning, attitudes, trust, and lifestyle are psychological variables that affect consumer buying. Answer: […]

A marketing manager should seek help from research only for problems where the risk of a decision can be greatly reduced at a reasonable cost. Answer: Internet retailers don’t need to develop whole marketing strategies due to their self-service nature. […]

Expense items which have had more processing than raw materials and become part of a finished product are component parts and materials. Answer: Marketing managers for Mountain Dew used a positioning statement to help focus efforts and gain market share […]

Job descriptions are not necessary for personal selling because all salespeople are expected to do the same task-sell products. Answer: “Good” market segments should be heterogeneous within and homogeneous between. Answer: FALSE “Good” market segments meet the following criteria: Homogeneous […]

The “battle of the brands” is the competition between dealer brands and manufacturer brands. Answer: The message channel may be as important as the message itself in influencing the receiver. Answer: TRUE The communication process is complicated even more because […]

Marketing specialists such as intermediaries and collaborators hinder the exchange process between producers and consumers. Answer: A segmenter is more likely than a combiner to really satisfy a target market and build such a close relationship with customers that it […]

According to learning theory, a cue is likely to result in a consumer response only if there is a drive to satisfy. Answer: The fastest rate of growth in GDP is occurring in the nations with the largest current GDP. […]

Poor customer service is likely to reduce a firm’s customer equity. Answer: Brand insistence means that target customers usually choose one brand over other brands, perhaps because of habit or favorable past experience. Answer: FALSE Brand preference means that target […]

A major accounts sales force is used when a company wants to be certain that its most important customers get a special selling effort. Answer: Average-cost pricing means adding a reasonable markup to the total cost of a product. Answer: […]

The majority of all retailers in the U.S. have annual average sales of less than $1 million. Answer: Marketing only applies to profit organizations. Answer: FALSE Marketing applies to both profit and nonprofit organizations. Marketing activities should begin with potential […]

Gen Y is the result of the echo boom and its members are more techno-savvy than any other group. Answer: In a recent Nielsen online survey of over 28,000 Internet consumers from 56 countries, over 60 percent of respondents said […]

It is illegal for a firm to use a package that cannot be recycled. Answer: When considering international markets, income is often one of the most important demographic dimensions. Answer: TRUE Income is often one of the most important demographic […]

As in the Toddler University case, the needs of a target market virtually determine the nature of an appropriate marketing mix. Answer: Expense items are depreciated over many years, while capital items are charged off as they are used-usually in […]

Marketing managers should be able to explain the kinds of problems they are facing and the kinds of marketing research information that will help them make decisions. Answer: A major advantage of mass selling is that the source-the seller-can get […]

A flexible-price policy is illegal in the U.S. Answer: A market is a group of competitors selling similar products. Answer: FALSE A market is a group of potential customers with similar needs who are willing to exchange something of value […]

Looking at sales volume is usually the easiest and best method of determining the degree of success for an advertising campaign. Answer: “Homogeneous within” means that the customers in a market segment should be as similar as possible with respect […]

Manufacturers’ agents earn higher commissions for introducing new products than they do for selling established products. Answer: Marketing functions are performed by producers, consumers, and a variety of marketing specialists. Answer: TRUE Producers and consumers sometimes handle some of the […]

Marketing encourages the development and spread of new ideas, goods, and services. Answer: Customer satisfaction is the extent to which a firm fulfills a consumer’s needs, desires, and expectations. Answer: TRUE Customer satisfaction is the extent to which a firm […]

The economic-buyer theory assumes that consumers know all the facts and logically compare choices. Answer: Goods are typically mass-produced in a factory far away from customers, while services are produced in their presence. Answer: TRUE Goods are typically mass-produced in […]

Information technology involves a trade-off because it cannot improve service levels and cut costs at the same time. Answer: A long-term commitment by an organization to a partner may reduce flexibility. Answer: TRUE Although close relationships can produce benefits, they […]

Open-ended questions are less likely to be asked in quantitative research than in qualitative research. Answer: Activities, Interests and Opinions are the “AIO” variables used in lifestyle analysis. Answer: TRUE Psychographics or lifestyle analysis is the analysis of a person’s […]

Most Western economies are completely market-directed. Answer: Despite the functions they provide, the number of wholesalers in the United States has decreased 16 percent in the last 15 years. Answer: TRUE The number of wholesalers in the United States has […]

Trying to maximize short-run return on investment may not be compatible with a company’s other objectives. Answer: Micro-marketing is a social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively […]

The simple trade era was a time when families traded or sold their ‘surplus” output to local distributors who resold these goods to other consumers or distant distributors. Answer: Discretionary income is what is left after paying taxes. Answer: FALSE […]

After making a purchase, buyers often wonder if they made the right choice. The resulting tension is called dissonance. Answer: Cookies are a cost-effective way for advertisers to target ads and boost online sales. Answer: TRUE Placing cookies on websites […]

When selling to government customers, competitive bids are common. Answer: Generally, the nations with the fastest growth in GDP are not the nations with the largest GDPs. Answer: TRUE Exhibit 3-5 gives an estimate of GDP for each country listed. […]

Considering that only a small percentage of cell phone users in many developed countries have smartphones, advertisers are wary about the effectiveness of delivering online ads on smartphones. Answer: GE’s strategic planning grid considers two dimensions-industry attractiveness and business strengths-to […]

Although advertising expenditures in the United States by 2013 were more than $220 billion, the major expense was for media time and space-not payroll expense to people who worked in the advertising industry. Answer: As opposed to behavioral targeting, social […]

When a firm’s domestic market is prosperous, marketing managers are less likely to pursue opportunities in international markets. Answer: Digital self-service is particularly effective when the customer needs routine information on a recurring basis. Answer: FALSE Emphasis on standardized e-commerce […]

The letters in “S.W.O.T. analysis” are an abbreviation for the first letters of the words ‘strengths, weaknesses, opportunities, and threats.” Answer: A channel of distribution is a series of firms or individuals participating in the flow of products from the […]

A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers. Answer: Staples are consumer products that are sold in places like gourmet shops and health […]

In the U.S., about three-fourths of new retailing ventures fail during the first year. Answer: Flexible-price policies are most common in the channels, in direct sales to business customers, and for expensive shopping products because sales reps may need to […]

Discretionary income is an elusive concept because the definition of necessities varies from family to family and over time. Answer: Finding her favorite brand of shampoo temporarily out of stock, a supermarket shopper is more likely to take part in […]

Value pricing involves developing a “bare bones” marketing mix and a cheap price. Answer: The growth of mega-agencies has been prompted by large corporations who need to advertise worldwide. Answer: TRUE The mega-agency can offer varied services, wherever in the […]

Because the cultural and social environment tends to change slowly, firms should try to identify and work with cultural attitudes rather than trying to encourage big changes in the short run. Answer: A competitive bid is the terms of sale […]

The product life cycle describes the stages a really new product idea goes through from beginning to end. Answer: Sales and profits generally decrease continually throughout the product life cycle. Answer: FALSE Sales and profits move from very low in […]

Sales promotion aimed at company’s own sales force is sometimes called trade promotion. Answer: Any contractual channel system-by definition-is also an administered channel system. Answer: TRUE In contractual channel systems, the channel members agree by contract to cooperate with each […]

A mission statement substitutes for more specific objectives. Answer: The major disadvantage of price lining is that it is complicated for both clerks and customers. Answer: FALSE The main advantage of price lining is simplicity, for both salespeople and customers. […]

Scientists or engineers-who may have little interest in sales but do provide technical assistance to order getters-are called technical specialists. Answer: The “wheel of retailing” theory says that new retailers enter the market as high-status, high-margin, high-price operators and then […]

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: TRUE The customer […]

The letters in “S.W.O.T. analysis” are an abbreviation for the first letters of the words ‘strengths, weaknesses, opportunities, and threats.” Answer: Shopping for a specialty product involves comparing the special features of different brands. Answer: FALSE Specialty products are consumer […]