Archives: Quiz

For market skimming to be successful, the cost of producing a smaller quantity of goods should not be higher than the prices charged. Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers located […]

A neighborhood shopping center has from 50 to more than 100 stores. The newer the buying task, and the more complex and costly the item, the lesser the amount of time the buyer will spend searching for suppliers. Answer: FALSE […]

Corporate Web sites are designed to build customer goodwill, collect customer feedback, and supplement other sales channels rather than to sell the company’s products directly. Widespread adoption of the euro has decreased much of the currency risk associated with doing […]

The percentage-of-sales method wrongly views sales as the cause of promotion rather than as the result. Marketing logistics involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption […]

C-to-B online marketing often involves the interchange of information through Internet forums that includes customers’ praise for and complaints about products. A market segment consists of consumers who respond in different ways to a given set of marketing efforts. Answer: […]

When The Candy Store sets a low initial price in order to get its “foot in the door” and to quickly attract a large number of buyers, the company is practicing market-skimming pricing. Companies in several industries have recognized the […]

In a territorial sales force structure, as each salesperson travels within a limited geographic area, travel expenses are relatively small. Persuasive advertising aims to build a selective demand. Answer: TRUE The macroenvironment consists of the factors close to the company […]

Producers of convenience products and common raw materials typically seek exclusive distribution, a strategy in which they stock their products in as many outlets as possible. Advertisements for prescription drugs often feature potential benefits and negative side effects that consumers […]

Market offerings are limited to physical products. Gary Hirshberg started the Stonyfield Farm yogurt company. His marketing strategy: building a casual bond with customers using guerilla marketing. This is an example of formulated marketing. Answer: FALSE During the presentation step […]

Trudie Jones works for a distribution channel firm that helps several electronics companies find customers or make sales to them. Trudie works for a reseller. In recent years, convenience stores have redesigned their stores to closely focus on serving their […]

A person’s occupation has no effect on the goods and services they buy. The job of a chief listening officer is to sift through online customer conversations and pass along key insights to marketing decision makers. Answer: TRUE In the […]

Intermodal transportation refers to the combination of two or more modes of transportation. An organization’s department follows a customer-centered sense-and-respond philosophy. The department is most likely practicing the product concept. Answer: FALSE On the BCG matrix, “question marks” are high-growth, […]

Sunset Lawn Service puts most of its resources into value-building marketing investments. The management at Sunset is practicing customer-value marketing. Product differentiation refers to the way a product is defined by consumers on important attributes-the place the product occupies in […]

In the supplier selection stage, the buyer reviews supplier performance. The workload approach is used to determine the type of sales force structure required by a company. Answer: FALSE Product line filling is overdone if it results in cannibalization and […]

Wholesaling includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. Small firms that can’t afford a competitive intelligence system often resort to using “in-house” experts to study competitors. Answer: TRUE […]

Competitive marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace. “At Trader Joe’s, our mission is to provide all our customers the best food and beverage values to be […]

E-procurement has caused the time between order and delivery to increase significantly. Whereas environmentalists consider whether the marketing system is efficiently serving consumer wants, consumerists are concerned with marketing’s effects on the environment and with the environmental costs of serving […]

The competitive intelligence system of a company supplies key information to relevant decision makers about the company’s competitors. A product idea is an idea for a possible product that a company can offer the market. Answer: TRUE Influencers often help […]

Environmental sustainability concerns have declined steadily over the past three decades. The uniform-delivered pricing strategy means that the goods sold are placed free on board a carrier with the customer paying the freight from the factory to the destination. Answer: […]

Under the strategy of intensive distribution, the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories. Large-scale advertising conveys a positive message about the seller’s size, popularity, and success. Answer: TRUE […]

The goal of competitive marketing intelligence is to evaluate and prevent high employee turnover. Direct marketing is an expensive way of reaching target markets. Answer: FALSE Less-for-much-less positioning involves meeting consumers’ lower performance or quality requirements at a much lower […]

The affordable method involves setting promotion budgets to match competitors’ outlays. Kia Motors offers a new car model with the same features as other cars in the same segment. However, Kia’s model is priced higher than its two main competitors. […]

Advertising specialties include displays and demonstrations that take place at the point of sale. During the preapproach step of the selling process, the salesperson meets the customer for the first time. Answer: FALSE In the United States, the lines between […]

Sales promotion involves building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. People differ greatly in their readiness to try new products. In each product area, there are “consumption pioneers.” They are also […]

For international researchers, language is a primary obstacle. Producers use intermediaries because they create greater efficiency in making goods available to target markets. Answer: TRUE Critics of marketing view consumer interest in material things as a natural state of mind […]

Local publics include consumer organizations, environmental groups, minority groups, and others. At the narrowest level, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices. Answer: TRUE Postpurchase behavior […]

Within a given hotel reputed for its superior service, one registration-desk employee may be cheerful and efficient, whereas another may be irritable and slow. This exemplifies service variability. If the pull strategy is effective, then consumers will demand the product […]

A company cannot stretch its product line downward. Children exert little influence on family buying decisions. Answer: FALSE Neuromarketing involves measuring brain activity to learn how consumers feel and respond. Answer: TRUE Off-price retailers pay regular wholesale prices for their […]

Retailers first must position themselves in a market and then decide how they will define the target customers in these markets. Mail questionnaires can be used to collect large amounts of information at a low cost per respondent. Answer: TRUE […]

Independent off-price retailers either are independently owned and run or are divisions of larger retail corporations. The first step in the selling process is prospecting€identifying qualified potential customers. Answer: TRUE Advertising media costs and availability differ vastly from country to […]

The relative cost of an advertising media is the relationship between the actual cost of the ad and the number of consumers the message reaches. Stress usually begins when individuals are placed in a work environment that is incompatible with […]

Setting up the human resource management (HRM) objectives of a company is an example of an activity for strategic planning. A family limited partnership resembles a will and contains instructions for managing personal assets. Answer: False Counseling is not needed […]

A business plan is a tool for attracting people and money. Small firms generally should not attempt to be price leaders. Answer: True In the United States, telecommuting leads to reduced stress since the workplace and home become one. Answer: […]

A buy-sell agreement details the terms by which stockholders can buy out each other’s interest. Personal responsibility is defined as the obligation of a business to follow desirable courses of action in terms of society’s values and objectives. Answer: False […]

One’s personal ethic is one’s own belief system. Issuing purchase orders creates legal records of purchase. Answer: True The Service Corps of Retired Executives is sponsored by the Minority Business Development Agency. Answer: False Small businesses must strive for low […]

Oral reports are the most prevalent type of control used in small firms and provide two-way communication. Communication is the transfer of meaning from one person to another. Answer: True Reintroducing an old product is a good business idea since […]

For small business owners, a lack of accurate cost information can foster the illusion of making a greater profit than is really earned. Job splitting occurs when a single full-time job is retained, but its performance is shared by two […]

Small firms use debt financing because interest payments are tax-deductible expenses. Performance standards tell employees in advance what level of performance is expected of them. Answer: True Key person insurance insures the lives of important employees. Answer: True The U.S. […]

At regular intervals, a balance sheet is prepared to show the assets, liabilities, and owners’ equity of the small business. A capital budget reflects a business’s plans for obtaining, replacing, and expanding physical facilities. Answer: True In the context of […]

Exporting is the process of purchasing the goods of other nations. Exports largely depend on the ability of importers to sell products to local customers, using local currency. Answer: True Small business owners expect quick and concrete results from their […]

Small businesses should never subcontract production to deal with seasonal variations in demand. New developments in computer technology have caused prices to shoot up. Answer: False Specialization is using employees to do the work that they are best suited for. […]

In a line organization, staff is hired to advise and perform services for those doing the operations, financing, and selling. Self-insurance is usually impractical for very small businesses. Answer: True Articles of incorporation are the instrument by which a corporation […]

With advances in technology, many tasks in the health care industry are now performed by highly-paid and skilled workers. The amount of inventory after the sale of a finished product should be in balance with customer demand to minimize total […]

Small businesses should develop a rating system to select, evaluate, and retain suppliers. The disclosure agreement is a document that provides information on twenty items required by the Federal Trade Commission. Answer: True Product and trademark franchising can be observed […]

According to the Wage and Hour Law, 14 is the minimum working age for most nonfarm jobs. An operating system consists of inputs, processes, and outputs of a small business. Answer: True Equal partnership is advisable in order to facilitate […]

The lesser time a small business owner devotes to the business, the more important it is to have capable employees. Small firms are now subject to federal regulation in the same way as their larger competitors. Answer: True Marketing research […]

Deferred profit-sharing plans may be used to placate dissatisfied family members in a family-owned business – if deserved. One of the first things one should do when forming a business is to retain a competent lawyer. Answer: True Most small […]

The most universal form of employee development is on-the-job training or on-the-job learning. With each delegation, the authority needed to carry out the task must be awarded. Answer: True Expenses, such as depreciation on buildings are also known as variable […]

In a corporation, personal property of the owners can be taken to pay the debts of the business. Employees tend to disbelieve what the owner says, regardless of whether it is true or not. Answer: False Smaller firms tend to […]

An advantage of buying a franchise is that it already has many of the requirements for success. If a manager is a perfectionist, he or she does not need to delegate. Answer: False Niche marketing is the systematic gathering, recording, […]