Marketing Final QUIZZES
A discount house can store and transport merchandise that is purchased directly from the producer, thus eliminating the need for a wholesaler. This is an example of vertical channel integration.
TRUE
A nonprofit organization may exist in an environment in which its goals are opposed by some members of society.
TRUE
A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.
TRUE
A product need not be a physical product.
TRUE
Advertising is paid nonpersonal communication transmitted through mass media.
TRUE
An example of a nonstore retailer is a vending machine.
TRUE
An important question in the business analysis stage of new-product development is, "Is demand strong enough to justify entering the market and will this demand endure?"
TRUE
Both production and consumption of services occur at the same time.
TRUE
Communicating product benefits to consumers is very important in the introduction stage.
TRUE
Comparative advertisements mention the actual names of competing brands.
TRUE
Conflicts with the retailer may develop if the dealer decides to place too much emphasis on competing product lines.
TRUE
Convenience products usually are distributed intensively because sales of these products tend to have a direct relationship to availability.
TRUE
Demand for a product category rather than for a specific brand is called primary demand.
TRUE
Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher demand.
TRUE
Demonstrations in retail stores are not used widely because they are expensive.
TRUE
Department stores are characterized by wide product mixes.
TRUE
Direct marketing is the selling of products outside the confines of a retail facility.
TRUE
Effective promotional programs require management efforts such as planning, organization, implementation, and control.
TRUE
Firms that desire to convey an exclusive image for their products may wish to limit the number of outlets available.
TRUE
Firms that link the purchase of their product to philanthropic efforts practice cause-related marketing.
TRUE
For most products, the quantity demanded goes up as the price goes down.
TRUE
Functional modifications usually require that the product be redesigned.
TRUE
Generally, consumer sweepstakes are more popular than consumer contests.
TRUE
If integrated marketing communications works as intended, customers should receive clear and consistent messages.
TRUE
If possible, the salesperson should handle objections only when they arise.
TRUE
Listening on the part of a salesperson is a major component in making a presentation.
TRUE
Long-term commitments usually characterize the relationships among channel members.
TRUE
Many of the so-called new products that are launched each year are in fact line extensions.
TRUE
Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.
TRUE
Marketing channels create several types of utility including time, place, possession, and form.
TRUE
Nonprice competition emphasizes distinctive product features, service, and product quality.
TRUE
Off-price retailers seek to attract relatively affluent consumers who are price-conscious and knowledgeable about brand names.
TRUE
One of the best ways to better understand customer needs and expectations is to ask contact employees.
TRUE
Price elasticity of demand measures the sensitivity of demand to changes in price.
TRUE
Price is the most easily adjusted ingredient in the marketing mix.
TRUE
Price is the value that is exchanged for products in a marketing transaction.
TRUE
Product advertising is often used to stimulate demand directly.
TRUE
Promotion can assist salespeople in finding likely sales prospects
TRUE
Radio copy should consist of short, familiar terms.
TRUE
Rapid feedback enables communicators to quickly improve the effectiveness of their communication.
TRUE
Reinforcement advertising tells current users how to get the most satisfaction from the brand they have chosen.
TRUE
Relatively few product ideas are put into the product development stage.
TRUE
Retailers form an important link in the marketing channel because they are both marketers and customers.
TRUE
Sales peak in a product's maturity stage, but profits don't.
TRUE
Sales promotion activities are generally used in conjunction with other promotional efforts.
TRUE
Selective demand is demand for a certain brand.
TRUE
Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping product.
TRUE
Services are highly perishable and cannot be inventoried for future use.
TRUE
Store atmospherics are used to create emotional effects that enhance the probability of purchasing.
TRUE
Supporting services, such as installation and guarantees, are part of a product.
TRUE
Test marketing is a sample launching of the entire marketing mix.
TRUE
The advertising copy platform is the foundation on which campaign messages are built.
TRUE
The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product.
TRUE
The choice of media influences the content and form of the message.
TRUE
The depth of a product mix is measured by the average number of product types in a product line.
TRUE
The focus of personal selling is shifting from selling a specific product to building long-term relationships with customers by finding solutions to their needs, problems, and challenges.
TRUE
The major drawback in using aesthetic modifications is that their value is determined subjectively.
TRUE
The primary goals of personal selling are finding prospects, convincing prospects to buy, and keeping customers satisfied.
TRUE
The purpose of a marketing channel is to make products available at the right time at the right place in the right quantities.
TRUE
The role of promotion is to communicate
TRUE
The statement of advertising objectives should include a benchmark—such as the current sales level—and indicate how much improvement is sought.
TRUE
Time spent in test marketing can benefit a firm's competitors
TRUE
Total costs are influenced by quantities sold.
TRUE
Using promotional efforts that encourage the trial use of some services can be an effective way for customers to assess the quality of the offered service.
TRUE
Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.
TRUE
When higher-priced or technically complex business products are involved, business customers prefer to deal directly with producers rather than through intermediaries.
TRUE
Because services are intangible by nature, marketers should downplay the tangibles associated with a particular service (such as facilities or employees).
FALSE
Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.
FALSE
Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.
FALSE
Cooperative advertising refers to advertisements promoting a product and identifying participating retailers that sell the product.
FALSE
Discount stores are distinctive in that they usually are very service-oriented.
FALSE
Feedback does not exist for mass communication.
FALSE
Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development.
FALSE
Fixed costs vary with the number of units produced or sold.
FALSE
Franchised outlets are generally less successful than independently owned businesses.
FALSE
Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.
FALSE
Most marketers depend on one-sale customers for long-run survival.
FALSE
Per-unit gross margins on convenience products are relatively high.
FALSE
Pinpointing a target market should be done only after the selection of a marketing mix.
FALSE
Price should be defined in terms of money only.
FALSE
Public relations is communication in news story form about an organization, its products, or both that is transmitted through a mass medium at no charge.
FALSE
Quality modifications never seek to reduce product quality.
FALSE
Sales promotion activities are always supplementary to personal selling and advertising.
FALSE
Sellers using nonprice competition are not concerned with prices charged by competitors.
FALSE
Service industries account for less than 50 percent of the U.S. gross domestic product.
FALSE
Services are products that can be touched and felt.
FALSE
Supply chain management combines two or more stages of the marketing channel under one management.
FALSE
When encoding a message, the source should use signs or symbols that are new to the audience.
FALSE
When sales go up, advertising should be increased; when sales decline, advertising should be decreased.
FALSE
Wholesalers rarely handle credit for retailers and producers.
FALSE
CHAPTER 11
CHAPTER 11
CHAPTER 12
CHAPTER 12
CHAPTER 13
CHAPTER 13
CHAPTER 14
CHAPTER 14
CHAPTER 15
CHAPTER 15
CHAPTER 16
CHAPTER 16
CHAPTER 17
CHAPTER 17
CHAPTER 18
CHAPTER 18
CHAPTER 19
CHAPTER 19
CHAPTER 20
CHAPTER 20