Marketing Exam 3

Which of the following is the main type of "mass selling"? Select one: a. Sales promotion. b. Publicity. c. Advertising. d. Personal selling.

Advertising.

Scrambled merchandising is carrying Select one: a. discounted product lines. b. a number of product lines and offering a clearance sale twice a year. c. any product lines that a store thinks that it can sell profitably. d. a limited product line at a high price aimed at a small number of consumers. e. a specific product line and offering yearly discounts.

any product lines that a store thinks that it can sell profitably.

Dividing large quantities into smaller quantities as products get closer to the final market is called _____. Select one: a. bulk-breaking b. assorting c. dividing d. sorting e. accumulating

bulk-breaking

"Promotion" does NOT include: Select one: a. personal selling. b. sales promotion. c. advertising. d. publicity. e. introductory price dealing.

introductory price dealing.

"Retailing" refers to: Select one: a. the sale of products to final consumers. b. the sale of consumer products to wholesalers, retailers, or final consumers. c. None of these is a good answer. d. the sale of both business and consumer products. e. the performance of regrouping activities.

the sale of products to final consumers.

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by Select one: a. None of these is a good answer, since the cost of shipping a product usually does not vary from one mode to another. b. water. c. pipeline. d. truck. e. air

water.

Which of the following does NOT contribute to total inventory cost? Select one: a. Costs of damage to products while in inventory. b. Costs of inventory becoming obsolete. c. Costs of risks such as theft and fire. d. Handling costs. e. Increase in the value of goods.

Increase in the value of goods.

In which of the following countries would retailers be most likely to sell products in small quantities, to small numbers of consumers? Select one: a. Nepal b. Ireland c. South Korea d. Austria e. Japan

Nepal

Which of the following chains is the largest food retailer in the U.S.? Select one: a. Target b. Safeway c. Kroger's d. Kmart e. Walmart

Walmart

In general, marketers that seek greater control over their marketing mixes in the international environment will: Select one: a. set up traditional global channels. b. choose to export or license. c. use intensive distribution. d. invest more financial resources and take greater risks. e. hire more marketing managers.

invest more financial resources and take greater risks.

"Promotion" includes: Select one: a. sales promotion and personal selling. b. personal selling, mass selling, and sales promotion. c. None of these choices is correct. d. mass selling and sales promotion.

personal selling, mass selling, and sales promotion.

Which of the following is NOT one of the basic promotion objectives discussed in the text? Select one: a. All of these are promotion objectives. b. to persuade c. to remind d. to inform e. to manipulate

to manipulate

Nature Fresh Cereal does not feel satisfied with the location and amount of shelf space it is given at Sunshine Health Food Markets. This creates a source of Select one: a. parallel conflict. b. horizontal conflict. c. diagonal conflict. d. vertical conflict. e. placement conflict.

vertical conflict.

Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of Select one: a. accumulating. b. vertical integration. c. a contractual channel system. d. dual distribution. e. reverse distribution.

vertical integration.

As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa? Select one: a. 25 to 30 percent b. Less than 9 percent c. Approximately 12 percent d. Approximately 15 percent e. 9 to 12 percent

25 to 30 percent

Which of the following statements about inventory and storage is TRUE? Select one: a. Decisions about inventory levels are usually not of concern to marketing managers—since inventory levels are best determined based on the amount of the product produced. b. Only government agencies can store products in public warehouses c. Achieving customer service goals makes a large inventory almost inevitable. d. Minimizing storage costs will lead to lower total distribution costs. e. A distribution center is used to avoid unnecessary storing costs.

A distribution center is used to avoid unnecessary storing costs.

Which of the following is NOT an example of sales promotion? Select one: a. A small toy in a "kid's pack" at a Wendy's fast-food restaurant. b. Samples of a new brand of cheese given away at a supermarket. c. An auto bumper sticker that says "Buy American." d. A half-page ad in the telephone Yellow Pages for a security service. e. A display of fishing equipment by a sporting goods store in a shopping mall.

A half-page ad in the telephone Yellow Pages for a security service.

A pest control company using the most common method of promotional budget planning is most likely to base its promotional budget on which of the following? Select one: a. A detailed analysis of the requirements of the promotion objectives b. Survey data from customers regarding company promotion methods c. Customer reviews of other pest control companies in the local market d. A percentage of expect future sales revenue from pest control jobs e. Advertising costs incurred by related businesses within the same area

A percentage of expect future sales revenue from pest control jobs

Regarding a "chain of supply": Select one: a. None of these alternatives about "chain of supply" is correct. b. It always includes at least two channels of distribution. c. All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain. d. Logistics functions are not shifted or shared among the firms in the chain of supply. e. Firms never outsource the whole job of planning and implementing their logistics systems.

All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain.

Which of the following would be considered a retailing "category killer"? Select one: a. Petsmart (pet supplies) b. All of these are "category killers." c. IKEA (furniture) d. Best Buy (electronics) e. Home Depot (home improvements)

All of these are "category killers."

"Logistics" is concerned with: Select one: a. transporting, storing, and handling of physical goods within individual firms. b. reducing spatial separations between producers and consumers. c. All of these are included in Logistics. d. transporting, storing, and handling of physical goods along channel systems. e. physical distribution

All of these are included in Logistics.

A retailer's "Promotion" may include: Select one: a. online videos and reviews. b. publicity. c. demonstrations and displays. d. All of these are included in a retailer's "Promotion." e. number of salespeople.

All of these are included in a retailer's "Promotion."

Many firms prefer to distribute directly to the final customer or consumer because they Select one: a. All of these are reasons why firms prefer direct distribution. b. can use the Internet to make direct distribution easier. c. believe they can serve target customers at a lower cost. d. think they can do the work more effectively than intermediaries. e. want to control the whole marketing job.

All of these are reasons why firms prefer direct distribution.

The text suggests that a "channel captain" should be: Select one: a. a large retailer. b. a market-oriented producer. c. a strong wholesaler. d. Any of these—i.e. whoever can provide leadership.

Any of these—i.e. whoever can provide leadership.

____ provide a place where buyers and sellers can come together and bid to complete a transaction. Select one: a. Brokers b. Rack jobbers c. Auction companies d. Export agents e. Selling agents

Auction companies

Which of the following is an example of a limited-function merchant wholesaler? Select one: a. General-line wholesaler b. Specialty wholesaler c. Cash-and-carry wholesaler d. Mill supply house e. Broker

Cash-and-carry wholesaler

Josh Adams runs a large cattle farm in Texas. In order to take advantage of higher prices for beef in Europe compared to the United States, he has started selling cattle overseas by using an agent wholesaler who specializes in finding European customers for U.S. firms. He ships the cattle to Europe by water transport. Josh is involved in: Select one: a. Franchising. b. Joint venturing. c. Licensing. d. Management contracting. e. Exporting.

Exporting.

When an individual initiates the communication process by searching for information about a business, which of the following search tools is he or she most likely to use? Select one: a. Billboard advertisement b. Newspaper advertisement c. Business newsletter d. Television advertisement e. Internet

Internet

Regarding airfreight, which of the following statements is NOT true? Select one: a. Inventory costs usually increase, since only small quantities can be shipped at a time. b. Airfreight is opening up new markets for many perishable items. c. Airfreight may reduce the total cost of distribution. d. Very bulky items cannot be shipped economically. e. There are usually fewer problems from theft and damage with airfreight

Inventory costs usually increase, since only small quantities can be shipped at a time.

Regarding promotion blends, which of the following statements is TRUE? Select one: a. Consumer products producers should rely almost completely on personal selling in the market maturity stage. b. Reminding becomes important in the market introduction stage. c. More targeted promotion is needed during the sales decline stage of the product life cycle. d. None of these statements is TRUE. e. Informing becomes important in the market growth stage.

More targeted promotion is needed during the sales decline stage of the product life cycle.

Regarding promotion methods, which of the following statements is TRUE? Select one: a. Personal selling can provide immediate feedback. b. Sales promotion activities produce results very slowly compared to advertising. c. Advertising is usually more tailored to the individual needs and attitudes of target customers than personal selling. d. Publicity is "free," but usually is ineffective for really new products. e. All of these statements about promotion methods are TRUE.

Personal selling can provide immediate feedback.

Which of the following promotional objectives is most likely being accomplished when a window company compares its windows to those of a competitor to show homebuilders why its products are superior? Select one: a. Informing b. Persuading c. Rebutting d. Reminding e. Planning

Persuading

Which of the following products would have the lowest transporting costs as a percentage of the selling price? Select one: a. Pharmaceuticals. b. Electronic equipment. c. Chemicals and plastics. d. Sand and gravel e. Manufactured food.

Pharmaceuticals.

Which of the following statements does not accurately characterize place decisions? Select one: a. Place decisions involve stocking the right quantities of products. b. Place decisions involve identifying appropriate locations for products. c. Place decisions typically involve channel partners. d. Place decisions must analyze when customers will want or need products. e. Place decisions are easier to change compared to price, promotion, and product decisions.

Place decisions are easier to change compared to price, promotion, and product decisions.

Which of the following statements about Place is true? Select one: a. Most consumer products and most business products are sold to intermediaries who then sell them to final customers. b. Place decisions are usually harder to change than other marketing mix decisions. c. None of these statements about Place is true. d. There is always one Place arrangement that is "best" for a product. e. A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network.

Place decisions are usually harder to change than other marketing mix decisions.

A company's policy regarding in-store returns falls under which of the following elements of its marketing mix? Select one: a. Product b. Promotion c. Price d. Positioning e. Place

Product

When a supermarket manager decides to set up an end-of-aisle display for 12-pack containers of Coke Zero, this is a decision about: Select one: a. Promotion. b. Place. c. Price. d. Product.

Promotion.

Which of the following is NOT a Place decision? Select one: a. Customer service level desired. b. Types of intermediaries needed. c. Recruiting, selecting and managing the sales force. d. Type of distribution channel to use. e. Degree of market exposure desired.

Recruiting, selecting and managing the sales force.

Hershey's places a simple ad for its "Kisses" chocolates in SPORTS ILLUSTRATED. The ad shows only a photo of the product with no copy words. This is an example of a(n) ____________ promotion objective. Select one: a. Persuading b. Reminding c. Pioneering d. Informing

Reminding

Which of the following is NOT an example of sales promotion? Select one: a. Provide coupons for products b. Run contests for its sales people c. Establish frequent buyer programs d. Provide samples to its customers e. Secure favorable media coverage

Secure favorable media coverage

Lacey Springs Apple Co. buys fresh apples in truckload quantities, regroups the heterogeneous commodities into homogeneous lots according to grade and quality, and then sells them to retailers. This "regrouping activity" is called: Select one: a. accumulating. b. sorting. c. bulk-breaking. d. wholesaling. e. assorting.

Sorting

Which of the following is NOT a type of limited-function wholesaler? Select one: a. Truck wholesaler b. Drop-shipper c. Specialty wholesaler d. Cash-and-carry wholesaler e. Catalog wholesaler

Specialty wholesaler

Tammy works in transportation for a company that manufactures tractors and other farm equipment in China for the U.S. market. Cost is her primary concern in getting products to farm states in the U.S. Midwest. Which mode(s) of transportation would you suggest? Select one: a. Water then rail. b. Air then rail. c. Air only. d. Air then truck. e. Water then truck

Water then truck

GEICO's aggressive advertising campaign of the late 1990s was designed to accomplish which of the following objectives? Select one: a. Target the high-risk market of military personnel b. Continue widespread recognition of the brand c. Win customers away from established competitors d. Enable the company to avoid filing bankruptcy e. Target the low-risk market of federal employees

Win customers away from established competitors

A small pet supply company assigns its sales manager to make the strategic decision regarding what blend of promotion methods the company should use for the coming year. Is the sales manager an appropriate choice for the role in this company? Select one: a. Yes, because the sales manager most likely functions as the company's marketing manager b. No, because the sales manager is likely to be less experienced than other managers at this job c. No, because the sales manager is focused on managing the company's mass-selling effort. d. No, because the sales manager will likely hire an outside agency to develop company ads. e. Yes, because the sales manager is likely to have a great deal of experience in public relations.

Yes, because the sales manager most likely functions as the company's marketing manager

Producers who consider handling the entire distribution job themselves may be especially inclined to do so because: Select one: a. many customers have established buying patterns that don't include buying direct from producers. b. intermediaries often serve customer needs better than producers and at lower cost. c. many customers have a preference for shopping at their favorite locations and won't be likely to change. d. direct distribution usually requires a significant investment in facilities, people, and information technology. e. a channel partner (intermediary) is not available or will not cooperate.

a channel partner (intermediary) is not available or will not cooperate.

Sony manufactures clock radios in quantities of more than 100,000 in a given time period—but the average consumer wants only one clock radio at a time. This difference is an example of Select one: a. a discrepancy of quantity. b. a sorting error. c. a discrepancy of assortment. d. a regrouping activities. e. re-assorting.

a discrepancy of quantity.

When Amazon.com collects products from many small producers, the company is involved in _____. Select one: a. assorting b. bulk-breaking c. accumulating d. sorting e. quantitizing

accumulating

Choosing an indirect channel probably will be better than a direct channel if a producer wants to: Select one: a. make it easier to do marketing research. b. obtain a very aggressive selling effort. c. adjust large discrepancies of quantity and assortment. d. be more sensitive to coming changes in customer needs and attitudes. e. provide special technical service.

adjust large discrepancies of quantity and assortment.

Rack jobbers: Select one: a. are full service merchant wholesalers. b. don't own the products they sell. c. are different from most wholesalers because they specialize in giving small retailers long-term credit. d. All of these are correct for rack jobbers. e. apply their knowledge of the local market to many stores.

apply their knowledge of the local market to many stores.

Logistics costs Select one: a. are important to both firms and consumers. b. have little impact on a macro marketing system. c. don't vary from firm to firm. d. are very similar across different countries. e. total less than 10 percent of the cost of groceries.

are important to both firms and consumers.

More freight is carried more miles _____ than any other mode of transportation Select one: a. by trucks b. by railroads c. over water d. by air e. by pipeline

by railroads

When Southwest Airlines sends an e-mail to frequent-flier customers offering a special low price between selected cities if the plane ticket is purchased within the next four days, this is an example of: Select one: a. integration. b. mass selling. c. direct marketing. d. indirect-response promotion. e. publicity.

direct marketing.

The primary function of a ______________ is to speed the flow of products and avoid unnecessary storing costs. Select one: a. distribution center b. private warehouse c. commodity warehouse d. public warehouse e. merchant wholesaler

distribution center

Raymond Weil, a European manufacturer of premium watches, is trying to compete in the U.S. market with other fine watch brands. Its corporate website contains the following notice: "RAYMOND WEIL products are sold by official dealers only. The RAYMOND WEIL International Guarantee is offered exclusively to consumers in possession of a watch purchased from an official dealer...." In the United States, Raymond Weil watches are not available in every jewelry or department store. For example, in large cities such as Boston, Washington, D.C., and San Francisco, there are only three retailers in each city that are official Raymond Weil dealers. Raymond Weil seems to be using: Select one: a. extensive distribution. b. intensive distribution. c. limited distribution. d. selective distribution. e. exclusive distribution.

exclusive distribution

Modern warehouses typically do NOT have: Select one: a. roller-skating order pickers. b. freight elevators. c. electric hoists. d. battery-operated motor scooters. e. power-operated lift trucks

freight elevators.

As a mode of transportation, railroad freight would be least suited for ____ Select one: a. fresh fruit. b. iron ore. c. automobiles. d. coal. e. sand.

fresh fruit.

A channel of distribution: Select one: a. is only needed when products must be stored. b. None of these alternatives is a good answer. c. must include one or more intermediaries. d. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. e. is only needed when products are sold indirectly.

is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.

An integrated direct-response promotion is most likely to be effective if: Select one: a. other elements of the promotion blend are not integrated. b. None of these is a good answer. c. it is used by a nonprofit organization rather than a firm. d. it relies on a CRM database to target specific individuals. e. it involves one-way communications between a firm and its target customer.

it relies on a CRM database to target specific individuals.

According to the text, single-line stores are also known as Select one: a. boutique stores. b. specialty shops. c. department stores. d. limited-line stores. e. general stores

limited-line stores.

The transporting function adds value by: Select one: a. making JIT the best approach. b. making products available when they're needed. c. making products available when AND where they're needed. d. making products available where they're needed. e. making the storage function obsolete.

making products available when AND where they're needed.

To minimize its own risks, the Boomtown Petroleum Corp. of Houston, Texas, operates a South American oil refinery that is owned by residents of that country. Boomtown is engaged in an activity known as: Select one: a. licensing. b. exporting. c. direct investment. d. a joint venture. e. management contracting.

management contracting

Deciding on the appropriate promotion blend is a job for the firm's: Select one: a. marketing manager. b. sales manager. c. advertising manager. d. advertising agency. e. sales promotion manager.

marketing manager.

Budgeting for marketing expenses by computing a percentage of forecasted sales: Select one: a. may lead to a drop in marketing expenses at a time when the firm wants to maintain or expand sales. b. always results in increased expenditure levels from year to year. c. is very complicated—and thus this method is not used very often. d. tends to result in large changes in marketing expenses from year to year. e. is especially suitable for new products.

may lead to a drop in marketing expenses at a time when the firm wants to maintain or expand sales.

The "total cost approach" to physical distribution management Select one: a. might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. b. seeks to minimize the cost of transportation. c. All of these alternatives for the "total cost approach" are correct. d. seeks to eliminate the storing function. e. ignores inventory carrying costs

might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs.

The "wheel of retailing" theory says that: Select one: a. general stores will dominate U.S. retailing again in the next century. b. None of these alternatives about the "wheel of retailing" is correct. c. new types of retailers enter as low-status, low-margin, low-price operators and eventually offer more services and charge higher prices. d. retailers go through cycles from high costs and prices to lower costs and profits.

new types of retailers enter as low-status, low-margin, low-price operators and eventually offer more services and charge higher prices.

Physical distribution differs from logistics in that Select one: a. logistics deals with storing and physical distribution does not. b. physical distribution is another common name for logistics. c. logistics uses JIT to coordinate activities among firms and physical distribution does not. d. logistics includes transporting goods and physical distribution does not. e. logistics includes customer service decisions and physical distribution does not.

physical distribution is another common name for logistics.

Logistics decisions include all of the following except: Select one: a. storage of goods. b. handling of goods. c. transporting of goods. d. prices to charge for delivery. e. distribution service level.

prices to charge for delivery.

The major function of auction companies is to: Select one: a. provide a place where buyers and sellers can complete a transaction. b. deliver the products they handle. c. help finance by owning products. d. All of these are major functions of auction companies. e. take title to the products they sell.

provide a place where buyers and sellers can complete a transaction

Public warehouses Select one: a. are not very useful to manufacturers who must maintain stocks in many locations, including foreign countries. b. All of these alternatives are correct for public warehouses. c. provide flexibility because the user pays only for the space used. d. are not usually responsible for the risk of damage in the warehouse. e. generally do not provide all the services that could be obtained in a company's own branch warehouse.

provide flexibility because the user pays only for the space used.

A computer software company sent three computer magazines some information about the latest release of its popular software program. One of the magazines printed a story about the new version. This is an example of: Select one: a. publicity. b. personal selling. c. advertising. d. None of these is a good answer. e. sales promotion.

publicity.

"Scrambled merchandising" refers to: Select one: a. limited-line retailers carrying wide assortments. b. retailers shifting from one product-market to another (e.g., a food retailer shifting to clothing). c. incompatible price and promotion policies. d. displays of impulse products in supermarkets. e. retailers carrying any product lines they can sell profitably.

retailers carrying any product lines they can sell profitably.

The idea that retailers will start to sell a new product that offers a profit margin higher than what they achieve on their traditional product line is consistent with the Select one: a. operating philosophy of most limited-line retailers. b. None of these is a good answer. c. wheel of retailing concept. d. marketing concept. e. scrambled merchandising concept.

scrambled merchandising concept.

Manufacturers' agents usually work for: Select one: a. manufacturers' sales branches. b. only one manufacturer. c. several manufacturers of noncompeting lines. d. service wholesalers. e. selling agents.

several manufacturers of noncompeting lines.

A _________ aims at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service. Select one: a. specialty shop b. department store c. mass-merchandising shop d. general store e. convenience store

specialty shop

A new grocery store features a bank, a pharmacy, a flower shop, a full-service bakery, a café, photo processing, and equipment rentals, in addition to its normal grocery product lines. The store is engaging in: Select one: a. the wheel of retailing theory. b. target marketing and product life cycle concepts. c. the rule of franchising. d. the law of retail gravitation. e. the corporate chain hypothesis.

target marketing and product life cycle concepts.

During the sales decline stage Select one: a. personal selling will probably dominate the promotion blends of consumer products firms. b. promotion emphasis shifts from stimulating selective demand to building primary demand. c. sales promotion is primarily targeted at intermediaries to get them interested in selling the product d. firms do not need targeted promotion to reach customers. e. the total amount spent on promotion usually decreases as firms try to cut costs to remain profitable.

the total amount spent on promotion usually decreases as firms try to cut costs to remain profitable.

Every morning, Sycamore Dairy picks up milk which farmers have "milked" that morning. The dairy processes the milk and separates the cream from the milk. Some of the cream is made into butter and packaged in various sizes. The milk and remaining cream are blended into various products, sealed in pint, quart and half-gallon containers, and delivered to supermarkets in the quantities and assortments they want. The dairy is providing what regrouping activity? Select one: a. the producer should always be the "channel captain." b. each member of the channel should focus on a different target market. c. a channel can eliminate the marketing functions. d. All of these ideas are relevant. e. the whole channel is competing with other channel systems.

the whole channel is competing with other channel systems.

A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use: Select one: a. pipelines. b. railroads. c. trucks. d. airways. e. inland waterways.

trucks.

Exclusive distribution Select one: a. should generally be used only if it is not possible to generate intermediary interest in intensive distribution. b. is legal as long as it does not involve vertical channel arrangements. c. arrangements between a producer and intermediary are illegal for most types of products, and thus they are not very common in the U.S. d. None of these alternatives are correct. e. usually involves intermediaries who are willing to take over all responsibility for promoting the producer's product.

usually involves intermediaries who are willing to take over all responsibility for promoting the producer's product.