Final Review - Part 2

14) Which of the following products would have the lowest transporting costs as a percentage of the selling price? 14) ______ A) Pharmaceuticals B) Manufactured food C) Electronic equipment D) Chemicals and plastics E) Sand and gravel

A

22) ______________segmenting dimensions are those which actually affect a person's purchase of a specific product type or brand in a product-market. 22) ______ A) Situation-related B) Determining C) Qualifying D) Operational E) Customer-related

B

24) The process of marketing strategy planning is about ______. 24) ______ A) choosing the most profitable market opportunity, regardless of the firm's current abilities and resources B) narrowing down possible market opportunities to the most attractive ones C) figuring out how to offer products at the lowest possible price D) creating products that managers like E) identifying as many market opportunities as can be imagined

B

26) How customers think about the various brands in a market can be graphically represented and tracked through ______. 26) ______ A) targeting B) positioning C) clustering D) segmenting E) researching

B

28) A sales presentation in which the sales rep does most of the talking, using a "canned" presentation to obtain a "yes" answer to a "trial close" is a 28) ______ A) selling formula presentation. B) prepared sales presentation. C) consultative selling presentation. D) target market presentation. E) None of these is a good answer.

B

28) Clustering techniques 28) ______ A) group customers into heterogeneous segments. B) try to find similar patterns within sets of data. C) establish how customers think about proposed or present brands in a market. D) help sellers fine-tune the marketing effort with information from a detailed customer database. E) use intuition and judgment to do what previously was done by computers.

B

29) Which of the following digital advertising does not work for brand building and is considered unsuitable for large firms? 29) ______ A) Social network advertising B) Directories and classifieds C) Search advertising D) Mobile advertising E) Banner ads

B

3) The standardization and grading function of marketing involves ______. 3) _______ A) providing necessary cash and credit B) sorting products according to size and quality C) looking for and evaluating goods and services D) promoting the product E) None of these answers is correct.

B

30) The largest and fastest growing ethnic minority group in the United States is composed of ______. 30) ______ A) Polish Americans B) Hispanics C) African Americans D) Native Americans E) Asian Americans

B

11) The ______ area of the marketing mix is concerned with decisions about getting the "right" product to the target market when and where it's wanted. 11) ______ A) People B) Product C) place D) Promotion E) price

C

11) When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used? 11) ______ A) Contractual method B) Just-in-time (JIT) delivery systems C) Electronic data interchange (EDI) D) Containerization technique E) Fast-schedule method

C

12) ________ assume(s) that everyone is the same-and consider(s) everyone to be a potential customer. 12) ______ A) Target marketing B) Mass marketers C) Mass marketing D) Target marketers E) Objective marketing

C

29) Which of the following is NOT one of the selective processes? 29) ______ A) Selective retention B) Selective exposure C) Selective perception D) Selective distribution E) All of these are selective processes.

D

3) ________ decisions are often long-run effects and are harder to change. 3) _______ A) Product B) Promotion C) Production D) Place E) People

D

30) Focusing a company's advertising on its name and prestige is called ______________ advertising. 30) ______ A) pioneering B) primary C) reminder D) institutional E) competitive

D

31) When an advertiser pays a fixed amount (e.g. 70 cents) each time a Web surfer clicks on the advertiser's ad and links to the advertiser's website, this process is called a(n): 31) ______ A) pay-per-view. B) copy thrust. C) advertising allowance. D) pay-per-click. E) pioneering ad.

D

35) What does the term "copy thrust" refer to? 35) ______ A) It refers to an FTC challenge to the claims made by an advertiser. B) It refers to all the advertising copy prepared for a particular brand. C) It refers to competitors who make similar claims in their ads. D) It refers to what is to be communicated by the words and illustrations. E) It refers to how much the audience believes what the advertiser says.

D

38) _____ means a product's ability to satisfy a customer's needs or requirements. 38) ______ A) Assortment B) Brand C) Service D) Quality E) Trademark

D

39) A product assortment is: 39) ______ A) a set of products that are closely related. B) something offered by manufacturers but not by retailers. C) a particular product within a product line. D) the set of all product lines and individual products that a firm sells. E) None of these alternatives is correct.

D

47) Product life cycles ______. 47) ______ A) last 5 years for each product idea B) are identical in length across all geographic regions C) are very long for movies D) vary in length but are generally getting shorter E) average 90 days

D

17) When looking for attractive opportunities, a marketing manager should consider: 17) ______ A) the firm's producing capability and flexibility. B) the firm's marketing strengths. C) the firm's financial strengths. D) whether the firm has good relations with established intermediaries. E) All of these should be considered.

E

20) _____ is communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior. 20) ______ A) Price B) Place C) Process D) Product E) Promotion

E

24) Personal selling techniques include all of the following EXCEPT: 24) ______ A) planning sales presentations. B) making sales presentations. C) following up after the sale. D) searching for prospects. E) preparing job descriptions.

E

33) Price reductions given to channel members to encourage them to advertise or otherwise promote a firm's products locally are: 33) ______ A) brokerage allowances. B) push money allowances. C) trade incentives. D) quantity discounts. E) advertising allowances.

E

34) Which of the following refers to a marketer countering negative publicity to save a product's image? 34) ______ A) Perceptual mapping B) Adoption process C) Dissonance process D) Information filtering E) Damage control

E

4) Exchanges between producers and consumers are more difficult in an advanced economy because of ______. 4) _______ A) separation in time B) spatial separation C) separation of information D) separation in values E) All of these are correct.

E

41) People spend an average of ________ minutes daily on Facebook. 41) ______ A) 10 B) 70 C) 55 D) 90 E) 40

E

41) The primary purpose of branding is to ______. 41) ______ A) to increase quality B) to enhance package design C) to prevent competitors from stealing product ideas D) to boost customer satisfaction E) to identify a product

E

15) Which of the following is the likely impact of the "unification of Europe"? 15) ______ A) Many of the taxes and rules that have limited trade among member countries of the European Union were eliminated. B) The need to adjust strategies to reach submarkets of European consumers disappeared. C) Consumer prices rose and job opportunities became limited. D) Firms operating in Europe had harder access to large markets. E) The unification complicated inter-European commerce and trade directly.

A

16) The North American Free Trade Agreement (NAFTA): 16) ______ A) Has reshaped the rules of trade among the United States, Canada, and Mexico. B) Makes it more difficult to resolve trade disputes among the countries participating in NAFTA. C) Provides a plan to reshape the rules of trade among Germany, the United States, and Colombia. D) Eliminates the need for companies to adjust strategies.

A

17) The AIDA model includes all of the following promotion jobs except ______. 17) ______ A) increasing demand B) getting attention C) obtaining action D) holding interest E) arousing desire

A

18) A ________ is an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals. 18) ______ A) competitor matrix B) positioning graph C) competitor analysis D) insight table E) competitive advantage

A

2) The regrouping activity which involves putting together a variety of products to give a target market what it wants is called ________. 2) _______ A) assorting B) bulk-breaking C) accumulating D) sorting E) wholesaling

A

2) ______ refers to the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in society. 2) _______ A) Economic system B) Resource utilization C) Separation of values D) The way a firm measures value E) Socio-economic policy

A

27) For an order-getter, which of the following steps in the personal selling process usually occurs first? 27) ______ A) Select target customer B) Close sale C) Make sales presentation D) Follow up after purchase E) Preplan sales call

A

32) Discretionary income is defined as ______. 32) ______ A) income available after taxes and necessities B) gross domestic product per capita C) total market value of goods and services produced D) income available after taxes E) income available before taxes

A

33) The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people is called a(n) ______. 33) ______ A) culture B) personal environment C) opinion set D) learned set E) motivation

A

34) The digital advertising that can stimulate viral with its wide reach and can be narrowly targeted at relatively low cost is ________. 34) ______ A) social network advertising B) directories and classifieds C) search advertising D) banner ads E) mobile advertising

A

35) The web and social media ______. 35) ______ A) expose consumers to many goods and services B) are drastically replacing opinion leaders C) have little impact on consumer decision making D) are unlikely to affect consumer awareness of wants and needs E) lead to poor buying decisions

A

38) Which of the following sources of buying information is trusted by 68 percent of consumers? 38) ______ A) Consumer opinions posted online B) Ads on radio C) Ads on TV D) Ads in magazines E) Branded websites

A

40) Identify the social media that allows users to create, share ideas, and interact in a social network. 40) ______ A) Pinterest B) Magazine C) Newspaper D) Television E) Radio

A

42) Which of the following represents traditional media that can help advertising of products? 42) ______ A) Television B) Twitter C) Facebook D) Instagram E) LinkedIn

A

43) When a firm considers the key words used by target customers in search and designs a website so that it ranks high in a search engine's unpaid results, it is called ________. 43) ______ A) search engine optimization B) search engine query C) process regularization D) product optimization E) online search regularization

A

44) The product life cycle is divided into four major stages. They are ______. 44) ______ A) market introduction, market growth, market maturity, and sales decline B) ideation, market growth, market maturity, and investment decline C) market penetration, market growth, market maturity, and sales decline D) market introduction, profit growth, market maturity, and profit decline E) concept introduction, market decline, market maturity, and sales decline

A

47) Offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities is a ______________ policy. 47) ______ A) one-price B) value pricing C) penetration pricing D) flexible-price E) skimming pricing

A

1) In a channel where retailers lead, intermediaries that gather, analyze, and interpret big data that generates insights about their customers' needs will ________. 1) _______ A) take a back seat in a producer-dominated channel system B) seek out producers who can meet those needs with products at reasonable prices C) lose their bargaining power against suppliers and customers D) stop playing the role of a channel captain E) lose their power to influence pricing

B

12) Why would Coca-Cola want to encourage its customers to store product in their homes? 12) ______ A) Shipping costs to transport the product are reduced B) More of the product is used or consumed C) The sales price of the product decreases D) It refers to the marketing function of holding goods. E) Shipping time to transport the product is reduced

B

13) Personal selling lets the salesperson adapt the firm's marketing mix to a specific customer. This is an aspect of which marketing mix variable? 13) ______ A) Price B) Promotion C) Place D) Product

B

14) The total stream of purchases that a single customer could contribute to a company over the length of the relationship is called customer ____. 14) ______ A) satisfaction B) lifetime value C) service D) equity E) feedback

B

15) Which of the following are the basic types of promotion? 15) ______ A) only personal selling and publicity B) personal selling, mass selling, sales promotion, and publicity C) only mass selling and personal selling D) only mass selling and sales promotion E) only sales promotion and personal selling

B

19) Which of the following promotional objectives is most likely being accomplished when a real estate agent sends her customers a yearly calendar containing the agent's business logo? 19) ______ A) Rebutting B) Reminding C) Persuading D) Planning E) Informing

B

21) Generation Z refers to: 21) ______ A) those born in the generation immediately following the baby boom. B) those born since 1995. C) those born between 1946 and 1964. D) those born between 1965 and 1977.

B

31) In the adoption process, an individual moves through six definite steps; they are ______. 31) ______ A) awareness, interest, involvement, trial, decision, and confirmation B) awareness, interest, evaluation, trial, decision, and confirmation C) involvement, interest, evaluation, trial, decision, and confirmation D) evaluation, interest, awareness, trial, decision, and confirmation E) evaluation, interest, involvement, trial, decision, and confirmation

B

36) Price reductions given to channel members to encourage them to advertise or otherwise promote a firm's products locally are called ________. 36) ______ A) trade incentives B) advertising allowances C) brokerage allowances D) quantity discounts E) push money allowances

B

37) A "product" is best described as ______. 37) ______ A) an image in the mind of the consumer B) a need-satisfying offering of a firm C) a purely physical entity D) an intangible service E) the attractiveness of a package

B

40) Product line length indicates: the ______. 40) ______ A) the number of intermediaries involved in the distribution of all the offerings in a product line. B) the number of individual offerings in a product line. C) total number of products that the company has to offer its customers D) the number of product lines that the company has to offer its customers. E) the total customer lifetime value associated with the offerings in a product line.

B

44) ________ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself. 44) ______ A) PMs B) Discounts C) Phony prices D) Spiffs E) Markups

B

45) Almost any business transaction in a modern economy involves ________. 45) ______ A) an exchange at a list price B) an exchange of money-the money being the Price-for something of value C) "dumping" D) an exchange in which price serves as a measure of quality E) a loss of consumer surplus

B

48) Which of the following statements does not accurately characterize new-product development? 48) ______ A) Some companies move too slow to launch a new product. B) New-product development has a low risk of failure. C) Some companies move too fast to launch a new product. D) New-product development has a high risk of failure. E) New-product development is costly.

B

50) During the development step of new product development, a firm could develop a ______, an early sample or model built to test a concept. 50) ______ A) concept test B) prototype C) ideatype D) embryo concept E) creation

B

6) An organization practicing ______ aims all its efforts at satisfying its customers—at a profit. 6) _______ A) in the marketing department era B) the marketing concept C) a production orientation D) the sales concept E) profit maximization economics

B

7) In a pure subsistence economy, ______. 7) _______ A) there is a great need for intermediaries B) each family unit is self-sufficient C) exchanges are very important D) the standard of living is relatively high

B

9) A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers. 9) _______ A) physical distribution group B) supply chain C) logistics partnership D) just-in time group E) none of these alternatives is a good answer

B

19) Gross national income (GNI) is the total ________. 19) ______ A) cost of producing all goods and services sold in a year B) market value of goods and services consumed in a year C) market value of goods and services provided in an economy in a year by residents of that country D) market value of goods (but not services) produced in an economy in a year E) market value of goods (but not services) consumed in an economy in a year

C

20) Increased demand for new homes due to low interest rates is an example of the impact of the ________ environment. 20) ______ A) competitive B) cultural C) economic D) technological E) social

C

21) Budgeting for promotion expenditures by computing a percentage of past or expected sales 21) ______ A) will increase promotional expenditures when business is poor. B) is a complex method of budgeting. C) is the most common method of setting the promotion budget. D) is especially suitable for new products. E) none of these alternatives is correct.

C

23) A market-oriented strategy planner applies the ______________ target market approach. 23) ______ A) multiple B) single C) Any of these could be true. D) combined

C

23) Good salespeople ________. 23) ______ A) are not expected to be marketing managers in their own territories B) are not part of the marketing information function for the firm C) help customers buy D) help customers avoid buying E) are never the only link between the firm and its customers

C

32) The approach in which producers and intermediaries share the cost of ads in local media is called ________ advertising. 32) ______ A) comparative B) pioneering C) cooperative D) campaign E) institutional

C

36) Teenagers ______. 36) ______ A) are not an attractive market because they do not spend much money B) have no influence on the buying behavior of their parents C) have become a target for many firms D) have essentially the same buying habits as they had before reaching their teen years E) None of these alternatives is correct.

C

37) A free online photo and video sharing service geared to mobile phones is ________. 37) ______ A) Twitter B) Pinterest C) Instagram D) LinkedIn E) Bing

C

39) A customized web page that logically follows from clicking on an organic search result, online advertisement, or other link is called a ________. 39) ______ A) case study B) leading page C) landing page D) white paper E) blog

C

4) Direct ________ involves personal sales contact between a representative of the company and an individual consumer. 4) _______ A) distribution B) pricing C) selling D) servicing E) marketing

C

46) "Price fixing" means ________. 46) ______ A) a firm consciously setting its prices B) pricing a product that will be sold in a foreign market at a level below the cost of production C) competitors getting together to raise, lower, or stabilize prices D) selling products of like grade and quality to different buyers at different prices E) changing a price that was set at the wrong level by the financial manager

C

5) Which of the following is an example of the "micro-macro dilemma?" 5) _______ A) A person drives without fastening his seat belt even though a warning light and chime remind him to "buckle up." B) A person gets a speeding ticket because she was talking on her cell phone while driving and didn't notice a speed limit sign. C) A restaurant owner uses plastic containers to keep "take-out" food warm for customers, but the containers cannot be reused or recycled. D) A homeowner purchases a ladder but falls off it because he didn't set up the ladder according to the safety instructions posted on it. E) A person is injured while using a power lawn mower because of a small stone that is hurled from the discharge chute.

C

1) Marketing ______. 1) _______ A) emphasizes mass selling over personal selling B) allows production, rather than marketing, to determine what products to make C) concentrates on production, rather than advertising D) applies to both profit and nonprofit organizations E) none of these is a true statement about marketing

D

10) 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: Main feature of system Total Cost Distribution Service Level 1. Airfreight $1,000,000 95 percent 2. Inland Waterways $300,000 60 percent 3. Trucks $500,000 70 percent 4. Rail and regional warehouses $650,000 80 percent 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. United's shipments to international markets often rely on containerization. The likely reason for this is that 10) ______ A) containerization is very useful for small, frequent shipments. B) the tools are shipped by airfreight. C) containerization allows a firm to carry less inventory. D) it makes it easier to move shipments between different transportation modes. E) all of these are benefits of containerization.

D

13) The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels. 13) ______ A) efficiency service level B) trade-offs service level C) product service level D) customer service level E) standard service level

D

18) Each of the following statements regarding online promotional communications is true except that ______. 18) ______ A) marketing managers need to know where customers are likely to search for information and monitor what is being said there B) online complaints can serve the purpose of highlighting unmet customer needs C) customers often make purchases based on information that was not influenced by the product's marketing manager D) marketing managers need not focus on online information they don't create E) customers who search online often find messages outside the marketer's control

D

22) Sales jobs are a major part of the U.S. economy. About what percentage of employed workers in the U.S. are in some type of sales job? 22) ______ A) 15 percent B) 5 percent C) 20 percent D) 10 percent E) 2 percent

D

25) A ________ is the salesperson's request for an order. 25) ______ A) prospect B) job description C) proposal D) close E) sales quota

D

25) A detailed customer database, containing past purchases and other segmenting information, is used to focus marketing efforts on individual customers in a: ______. 25) ______ A) Diversification management system. B) Product differentiation matrix. C) Clustering management system. D) Customer relationship management system. E) Product positioning matrix.

D

26) A straight salary 26) ______ A) is tied to results actually achieved. B) offers the most incentive. C) includes some salary and some commission. D) offers the most security for the salesperson. E) is based on the specific sales or profit objective a salesperson is expected to achieve.

D

27) Which of the following is a BEHAVIORAL segmenting dimension? 27) ______ A) Region of the world or country B) Education C) Ethnicity D) Needs E) Income

D

49) Which of the following do firms using value pricing tend to avoid? 49) ______ A) Building a relationship with a customer which raises their expectations B) Delivering unexpected services which haven't been stated to the customer C) Focusing on customer requirements and adopting a relevant marketing mix D) Setting a high price only because consumers already know the brand name E) Establishing a price level that gives the target market superior customer value

D

7) For heterogeneous shopping goods, marketers should ________. 7) _______ A) keep the level of salesforce in the retail stores to the lowest level possible B) avoid selling through online stores C) provide limited customer support as customers focus mostly on low prices D) utilize knowledgeable salespeople who can provide insights about different brands and models E) sell through low-cost retailers

D

8) ________ means that the marketing mix is distinct from what is available from a competitor. 8) _______ A) Competitive B) Diversification C) Visible D) Differentiation E) Operational

D

9) The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called ________. 9) _______ A) market planning B) marketing strategy planning C) management by objective D) strategic (management) planning E) marketing programming

D

10) A firm's "marketing mix" decision areas would NOT include: 10) ______ A) Place. B) Price. C) Product. D) Promotion. E) People.

E

16) _____ means getting customers to ask intermediaries for the product. 16) ______ A) Pushing B) Underwriting C) Forecasting D) Branding E) Pulling

E

42) Identify the correct sequence of the levels involved in building brand familiarity. 42) ______ A) Brand activation, brand rejection, brand recognition, brand preference, brand insistence. B) Brand evaluation, brand preference, brand recognition, brand rejection, brand activation. C) Brand insistence, brand equity, brand evaluation, brand insistence, brand rejection. D) Brand rejection, brand nonrecognition, brand recognition, brand activation, brand equity. E) Brand rejection, brand nonrecognition, brand recognition, brand preference, brand insistence.

E

43) A "dealer brand" is sometimes called a __________ brand. 43) ______ A) national B) regional C) local D) manufacturer E) private

E

45) Competition for a product or product category begins to increase rapidly during the ______ stage of the product life cycle. 45) ______ A) market extinction B) market introduction C) sales decline D) market maturity E) market growth

E

46) Industry sales are highest in which of the following product life cycle stages? 46) ______ A) Sales decline B) Market growth C) Market development D) Market introduction E) Market maturity

E

48) Which of the following is not an example of price? 48) ______ A) interest on a loan B) college tuition C) doctor's fee D) apartment rent E) All of these are examples of price.

E

49) The stage of the new-product development process in which marketers evaluate the firm's strengths, weaknesses, and objectives is ______. 49) ______ A) development B) commercialization C) idea generation D) idea evaluation E) screening

E

5) A producer using several competing channels to distribute its products to its target market is using ________ distribution. 5) _______ A) horizontal B) selective C) intensive D) administered E) multichannel

E

50) "Unfair trade practice acts" ________. 50) ______ A) require different types of retailers to charge different retail prices B) eliminate price competition on manufacturers' brands C) prohibit intermediaries from taking excessive markups D) make price fixing illegal E) put a lower limit on prices, especially at the wholesale and retail levels

E

6) _____ means separating products into grades and qualities as desired by different target markets. 6) _______ A) Discrepancy of quality B) Accumulating C) Bulk-breaking D) Assorting E) Sorting

E

8) Which of the following problems led to the development of electronic data interchange (EDI)? 8) _______ A) International telecommunication difficulties B) Firms using different transportation modes C) Differences in product output and quality levels D) Differences in order fulfillment processes E) Computer system differences among firms

E